99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4378

 

Introduced , by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.875 new
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
30 ILCS 105/6z-101 new
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the rate of tax on firearms and firearm component parts shall be 10% (currently, 6.25%). Provides that the proceeds attributable to the increased rate shall be deposited into the At-Risk Youth Assistance Fund. Amends the State Finance Act to create the Fund. Sets forth the purposes for which moneys in the Fund may be used. Effective immediately.


LRB099 15640 HLH 39933 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4378LRB099 15640 HLH 39933 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 and by adding Sections 5.875 and
66z-101 as follows:
 
7    (30 ILCS 105/5.875 new)
8    Sec. 5.875. The At-Risk Youth Assistance Fund.
 
9    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
10    Sec. 6z-18. A portion of the money paid into the Local
11Government Tax Fund from sales of food for human consumption
12which is to be consumed off the premises where it is sold
13(other than alcoholic beverages, soft drinks and food which has
14been prepared for immediate consumption) and prescription and
15nonprescription medicines, drugs, medical appliances and
16insulin, urine testing materials, syringes and needles used by
17diabetics, which occurred in municipalities, shall be
18distributed to each municipality based upon the sales which
19occurred in that municipality. The remainder shall be
20distributed to each county based upon the sales which occurred
21in the unincorporated area of that county.
22    A portion of the money paid into the Local Government Tax

 

 

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1Fund from the 6.25% general use tax imposed rate on the selling
2price of tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by any agency of this State's government shall be
5distributed to municipalities as provided in this paragraph.
6Each municipality shall receive the amount attributable to
7sales for which Illinois addresses for titling or registration
8purposes are given as being in such municipality. The remainder
9of the money paid into the Local Government Tax Fund from such
10sales shall be distributed to counties. Each county shall
11receive the amount attributable to sales for which Illinois
12addresses for titling or registration purposes are given as
13being located in the unincorporated area of such county.
14    A portion of the money paid into the Local Government Tax
15Fund from the taxes imposed 6.25% general rate (and, beginning
16July 1, 2000 and through December 31, 2000, the 1.25% rate on
17motor fuel and gasohol, and beginning on August 6, 2010 through
18August 15, 2010, the 1.25% rate on sales tax holiday items) on
19sales subject to taxation under the Retailers' Occupation Tax
20Act and the Service Occupation Tax Act, on sales which occurred
21in municipalities, shall be distributed to each municipality,
22based upon the sales which occurred in that municipality. The
23remainder shall be distributed to each county, based upon the
24sales which occurred in the unincorporated area of such county.
25    For the purpose of determining allocation to the local
26government unit, a retail sale by a producer of coal or other

 

 

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1mineral mined in Illinois is a sale at retail at the place
2where the coal or other mineral mined in Illinois is extracted
3from the earth. This paragraph does not apply to coal or other
4mineral when it is delivered or shipped by the seller to the
5purchaser at a point outside Illinois so that the sale is
6exempt under the United States Constitution as a sale in
7interstate or foreign commerce.
8    Whenever the Department determines that a refund of money
9paid into the Local Government Tax Fund should be made to a
10claimant instead of issuing a credit memorandum, the Department
11shall notify the State Comptroller, who shall cause the order
12to be drawn for the amount specified, and to the person named,
13in such notification from the Department. Such refund shall be
14paid by the State Treasurer out of the Local Government Tax
15Fund.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the Department
18of Revenue, the Comptroller shall order transferred, and the
19Treasurer shall transfer, to the STAR Bonds Revenue Fund the
20local sales tax increment, as defined in the Innovation
21Development and Economy Act, collected during the second
22preceding calendar month for sales within a STAR bond district
23and deposited into the Local Government Tax Fund, less 3% of
24that amount, which shall be transferred into the Tax Compliance
25and Administration Fund and shall be used by the Department,
26subject to appropriation, to cover the costs of the Department

 

 

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1in administering the Innovation Development and Economy Act.
2    After the monthly transfer to the STAR Bonds Revenue Fund,
3on or before the 25th day of each calendar month, the
4Department shall prepare and certify to the Comptroller the
5disbursement of stated sums of money to named municipalities
6and counties, the municipalities and counties to be those
7entitled to distribution of taxes or penalties paid to the
8Department during the second preceding calendar month. The
9amount to be paid to each municipality or county shall be the
10amount (not including credit memoranda) collected during the
11second preceding calendar month by the Department and paid into
12the Local Government Tax Fund, plus an amount the Department
13determines is necessary to offset any amounts which were
14erroneously paid to a different taxing body, and not including
15an amount equal to the amount of refunds made during the second
16preceding calendar month by the Department, and not including
17any amount which the Department determines is necessary to
18offset any amounts which are payable to a different taxing body
19but were erroneously paid to the municipality or county, and
20not including any amounts that are transferred to the STAR
21Bonds Revenue Fund. Within 10 days after receipt, by the
22Comptroller, of the disbursement certification to the
23municipalities and counties, provided for in this Section to be
24given to the Comptroller by the Department, the Comptroller
25shall cause the orders to be drawn for the respective amounts
26in accordance with the directions contained in such

 

 

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1certification.
2    When certifying the amount of monthly disbursement to a
3municipality or county under this Section, the Department shall
4increase or decrease that amount by an amount necessary to
5offset any misallocation of previous disbursements. The offset
6amount shall be the amount erroneously disbursed within the 6
7months preceding the time a misallocation is discovered.
8    The provisions directing the distributions from the
9special fund in the State Treasury provided for in this Section
10shall constitute an irrevocable and continuing appropriation
11of all amounts as provided herein. The State Treasurer and
12State Comptroller are hereby authorized to make distributions
13as provided in this Section.
14    In construing any development, redevelopment, annexation,
15preannexation or other lawful agreement in effect prior to
16September 1, 1990, which describes or refers to receipts from a
17county or municipal retailers' occupation tax, use tax or
18service occupation tax which now cannot be imposed, such
19description or reference shall be deemed to include the
20replacement revenue for such abolished taxes, distributed from
21the Local Government Tax Fund.
22    As soon as possible after the effective date of this
23amendatory Act of the 98th General Assembly, the State
24Comptroller shall order and the State Treasurer shall transfer
25$6,600,000 from the Local Government Tax Fund to the Illinois
26State Medical Disciplinary Fund.

 

 

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1(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
 
2    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
3    Sec. 6z-20. Of the money received from the taxes imposed
46.25% general rate (and, beginning July 1, 2000 and through
5December 31, 2000, the 1.25% rate on motor fuel and gasohol,
6and beginning on August 6, 2010 through August 15, 2010, the
71.25% rate on sales tax holiday items) on sales subject to
8taxation under the Retailers' Occupation Tax Act and Service
9Occupation Tax Act and paid into the County and Mass Transit
10District Fund, distribution to the Regional Transportation
11Authority tax fund, created pursuant to Section 4.03 of the
12Regional Transportation Authority Act, for deposit therein
13shall be made based upon the retail sales occurring in a county
14having more than 3,000,000 inhabitants. The remainder shall be
15distributed to each county having 3,000,000 or fewer
16inhabitants based upon the retail sales occurring in each such
17county.
18    For the purpose of determining allocation to the local
19government unit, a retail sale by a producer of coal or other
20mineral mined in Illinois is a sale at retail at the place
21where the coal or other mineral mined in Illinois is extracted
22from the earth. This paragraph does not apply to coal or other
23mineral when it is delivered or shipped by the seller to the
24purchaser at a point outside Illinois so that the sale is
25exempt under the United States Constitution as a sale in

 

 

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1interstate or foreign commerce.
2    Of the money received from the 6.25% general use tax
3imposed rate on tangible personal property which is purchased
4outside Illinois at retail from a retailer and which is titled
5or registered by any agency of this State's government and paid
6into the County and Mass Transit District Fund, the amount for
7which Illinois addresses for titling or registration purposes
8are given as being in each county having more than 3,000,000
9inhabitants shall be distributed into the Regional
10Transportation Authority tax fund, created pursuant to Section
114.03 of the Regional Transportation Authority Act. The
12remainder of the money paid from such sales shall be
13distributed to each county based on sales for which Illinois
14addresses for titling or registration purposes are given as
15being located in the county. Any money paid into the Regional
16Transportation Authority Occupation and Use Tax Replacement
17Fund from the County and Mass Transit District Fund prior to
18January 14, 1991, which has not been paid to the Authority
19prior to that date, shall be transferred to the Regional
20Transportation Authority tax fund.
21    Whenever the Department determines that a refund of money
22paid into the County and Mass Transit District Fund should be
23made to a claimant instead of issuing a credit memorandum, the
24Department shall notify the State Comptroller, who shall cause
25the order to be drawn for the amount specified, and to the
26person named, in such notification from the Department. Such

 

 

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1refund shall be paid by the State Treasurer out of the County
2and Mass Transit District Fund.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected during the second
9preceding calendar month for sales within a STAR bond district
10and deposited into the County and Mass Transit District Fund,
11less 3% of that amount, which shall be transferred into the Tax
12Compliance and Administration Fund and shall be used by the
13Department, subject to appropriation, to cover the costs of the
14Department in administering the Innovation Development and
15Economy Act.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to the Regional
20Transportation Authority and to named counties, the counties to
21be those entitled to distribution, as hereinabove provided, of
22taxes or penalties paid to the Department during the second
23preceding calendar month. The amount to be paid to the Regional
24Transportation Authority and each county having 3,000,000 or
25fewer inhabitants shall be the amount (not including credit
26memoranda) collected during the second preceding calendar

 

 

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1month by the Department and paid into the County and Mass
2Transit District Fund, plus an amount the Department determines
3is necessary to offset any amounts which were erroneously paid
4to a different taxing body, and not including an amount equal
5to the amount of refunds made during the second preceding
6calendar month by the Department, and not including any amount
7which the Department determines is necessary to offset any
8amounts which were payable to a different taxing body but were
9erroneously paid to the Regional Transportation Authority or
10county, and not including any amounts that are transferred to
11the STAR Bonds Revenue Fund. Within 10 days after receipt, by
12the Comptroller, of the disbursement certification to the
13Regional Transportation Authority and counties, provided for
14in this Section to be given to the Comptroller by the
15Department, the Comptroller shall cause the orders to be drawn
16for the respective amounts in accordance with the directions
17contained in such certification.
18    When certifying the amount of a monthly disbursement to the
19Regional Transportation Authority or to a county under this
20Section, the Department shall increase or decrease that amount
21by an amount necessary to offset any misallocation of previous
22disbursements. The offset amount shall be the amount
23erroneously disbursed within the 6 months preceding the time a
24misallocation is discovered.
25    The provisions directing the distributions from the
26special fund in the State Treasury provided for in this Section

 

 

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1and from the Regional Transportation Authority tax fund created
2by Section 4.03 of the Regional Transportation Authority Act
3shall constitute an irrevocable and continuing appropriation
4of all amounts as provided herein. The State Treasurer and
5State Comptroller are hereby authorized to make distributions
6as provided in this Section.
7    In construing any development, redevelopment, annexation,
8preannexation or other lawful agreement in effect prior to
9September 1, 1990, which describes or refers to receipts from a
10county or municipal retailers' occupation tax, use tax or
11service occupation tax which now cannot be imposed, such
12description or reference shall be deemed to include the
13replacement revenue for such abolished taxes, distributed from
14the County and Mass Transit District Fund or Local Government
15Distributive Fund, as the case may be.
16(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
1797-333, eff. 8-12-11.)
 
18    (30 ILCS 105/6z-101 new)
19    Sec. 6z-101. At-Risk Youth Assistance Fund; creation.
20    (a) The At-Risk Youth Assistance Fund is hereby created as
21a special fund in the State treasury. Moneys in the Fund may be
22used for the following purposes, subject to appropriation: (1)
23to provide community college scholarships and grants to at-risk
24youth; (2) to make grants for the purpose of establishing and
25continuing summer job programs in communities in which at-risk

 

 

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1youth reside; (3) for juvenile justice programs; and (4) to
2make grants to trauma centers in high crime areas for medical
3emergency responses.
4    (b) For the purposes of this Section:
5    "At-risk youth" means an individual between the ages of 16
6and 22 who resides in a high crime area.
7    "High crime area" means a census tract in which the
8homicide rate is more than 4 times higher than the average
9homicide rate for a municipality that is the same size as the
10municipality in which the census tract is located, according to
11statistics generated by the Federal Bureau of Investigation as
12part of the Uniform Crime Reporting (UCR) Program.
13    "Trauma center" has the same meaning as in the Emergency
14Medical Services (EMS) Systems Act.
 
15    Section 10. The Use Tax Act is amended by changing Sections
163-10 and 9 as follows:
 
17    (35 ILCS 105/3-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20either the selling price or the fair market value, if any, of
21the tangible personal property. In all cases where property
22functionally used or consumed is the same as the property that
23was purchased at retail, then the tax is imposed on the selling
24price of the property. In all cases where property functionally

 

 

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1used or consumed is a by-product or waste product that has been
2refined, manufactured, or produced from property purchased at
3retail, then the tax is imposed on the lower of the fair market
4value, if any, of the specific property so used in this State
5or on the selling price of the property purchased at retail.
6For purposes of this Section "fair market value" means the
7price at which property would change hands between a willing
8buyer and a willing seller, neither being under any compulsion
9to buy or sell and both having reasonable knowledge of the
10relevant facts. The fair market value shall be established by
11Illinois sales by the taxpayer of the same property as that
12functionally used or consumed, or if there are no such sales by
13the taxpayer, then comparable sales or purchases of property of
14like kind and character in Illinois.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 3-6 of
21this Act, the tax is imposed at the rate of 1.25%.
22    Beginning January 1, 2017, with respect to firearms, as
23defined in Section 1.1 of the Firearm Owners Identification
24Card Act, and firearm component parts that are sold separately
25from the firearm and are necessary for the firearm to function
26in its intended manner, the tax is imposed at the rate of 10%.

 

 

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1    With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before December 31, 2018, and (iii) 100% of the proceeds of
6sales made thereafter. If, at any time, however, the tax under
7this Act on sales of gasohol is imposed at the rate of 1.25%,
8then the tax imposed by this Act applies to 100% of the
9proceeds of sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132018 but applies to 100% of the proceeds of sales made
14thereafter.
15    With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2018 but
3applies to 100% of the proceeds of sales made thereafter.
4    With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances,
9modifications to a motor vehicle for the purpose of rendering
10it usable by a person with a disability, and insulin, urine
11testing materials, syringes, and needles used by diabetics, for
12human use, the tax is imposed at the rate of 1%. For the
13purposes of this Section, until September 1, 2009: the term
14"soft drinks" means any complete, finished, ready-to-use,
15non-alcoholic drink, whether carbonated or not, including but
16not limited to soda water, cola, fruit juice, vegetable juice,
17carbonated water, and all other preparations commonly known as
18soft drinks of whatever kind or description that are contained
19in any closed or sealed bottle, can, carton, or container,
20regardless of size; but "soft drinks" does not include coffee,
21tea, non-carbonated water, infant formula, milk or milk
22products as defined in the Grade A Pasteurized Milk and Milk
23Products Act, or drinks containing 50% or more natural fruit or
24vegetable juice.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

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1beverages that contain natural or artificial sweeteners. "Soft
2drinks" do not include beverages that contain milk or milk
3products, soy, rice or similar milk substitutes, or greater
4than 50% of vegetable or fruit juice by volume.
5    Until August 1, 2009, and notwithstanding any other
6provisions of this Act, "food for human consumption that is to
7be consumed off the premises where it is sold" includes all
8food sold through a vending machine, except soft drinks and
9food products that are dispensed hot from a vending machine,
10regardless of the location of the vending machine. Beginning
11August 1, 2009, and notwithstanding any other provisions of
12this Act, "food for human consumption that is to be consumed
13off the premises where it is sold" includes all food sold
14through a vending machine, except soft drinks, candy, and food
15products that are dispensed hot from a vending machine,
16regardless of the location of the vending machine.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "food for human consumption that
19is to be consumed off the premises where it is sold" does not
20include candy. For purposes of this Section, "candy" means a
21preparation of sugar, honey, or other natural or artificial
22sweeteners in combination with chocolate, fruits, nuts or other
23ingredients or flavorings in the form of bars, drops, or
24pieces. "Candy" does not include any preparation that contains
25flour or requires refrigeration.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
12label includes:
13        (A) A "Drug Facts" panel; or
14        (B) A statement of the "active ingredient(s)" with a
15    list of those ingredients contained in the compound,
16    substance or preparation.
17    Beginning on the effective date of this amendatory Act of
18the 98th General Assembly, "prescription and nonprescription
19medicines and drugs" includes medical cannabis purchased from a
20registered dispensing organization under the Compassionate Use
21of Medical Cannabis Pilot Program Act.
22    If the property that is purchased at retail from a retailer
23is acquired outside Illinois and used outside Illinois before
24being brought to Illinois for use here and is taxable under
25this Act, the "selling price" on which the tax is computed
26shall be reduced by an amount that represents a reasonable

 

 

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1allowance for depreciation for the period of prior out-of-state
2use.
3(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15.)
 
4    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
5    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
6and trailers that are required to be registered with an agency
7of this State, each retailer required or authorized to collect
8the tax imposed by this Act shall pay to the Department the
9amount of such tax (except as otherwise provided) at the time
10when he is required to file his return for the period during
11which such tax was collected, less a discount of 2.1% prior to
12January 1, 1990, and 1.75% on and after January 1, 1990, or $5
13per calendar year, whichever is greater, which is allowed to
14reimburse the retailer for expenses incurred in collecting the
15tax, keeping records, preparing and filing returns, remitting
16the tax and supplying data to the Department on request. In the
17case of retailers who report and pay the tax on a transaction
18by transaction basis, as provided in this Section, such
19discount shall be taken with each such tax remittance instead
20of when such retailer files his periodic return. The Department
21may disallow the discount for retailers whose certificate of
22registration is revoked at the time the return is filed, but
23only if the Department's decision to revoke the certificate of
24registration has become final. A retailer need not remit that
25part of any tax collected by him to the extent that he is

 

 

HB4378- 18 -LRB099 15640 HLH 39933 b

1required to remit and does remit the tax imposed by the
2Retailers' Occupation Tax Act, with respect to the sale of the
3same property.
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 retailer, in collecting the tax (except as to motor
9vehicles, watercraft, aircraft, and trailers that are required
10to be registered with an agency of this State), may collect for
11each tax return period, only the tax applicable to that part of
12the selling price actually received during such tax return
13period.
14    Except as provided in this Section, on or before the
15twentieth day of each calendar month, such retailer shall file
16a return for the preceding calendar month. Such return shall be
17filed on forms prescribed by the Department and shall furnish
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;

 

 

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

 

 

HB4378- 20 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 21 -LRB099 15640 HLH 39933 b

1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those payments
3in the manner authorized by the Department.
4    The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7    Before October 1, 2000, if the taxpayer's average monthly
8tax liability to the Department under this Act, the Retailers'
9Occupation Tax Act, the Service Occupation Tax Act, the Service
10Use Tax Act was $10,000 or more during the preceding 4 complete
11calendar quarters, he shall file a return with the Department
12each month by the 20th day of the month next following the
13month during which such tax liability is incurred and shall
14make payments to the Department on or before the 7th, 15th,
1522nd and last day of the month during which such liability is
16incurred. On and after October 1, 2000, if the taxpayer's
17average monthly tax liability to the Department under this Act,
18the Retailers' Occupation Tax Act, the Service Occupation Tax
19Act, and the Service Use Tax Act was $20,000 or more during the
20preceding 4 complete calendar quarters, he shall file a return
21with the Department each month by the 20th day of the month
22next following the month during which such tax liability is
23incurred and shall make payment to the Department on or before
24the 7th, 15th, 22nd and last day of the month during which such
25liability is incurred. If the month during which such tax
26liability is incurred began prior to January 1, 1985, each

 

 

HB4378- 22 -LRB099 15640 HLH 39933 b

1payment shall be in an amount equal to 1/4 of the taxpayer's
2actual liability for the month or an amount set by the
3Department not to exceed 1/4 of the average monthly liability
4of the taxpayer to the Department for the preceding 4 complete
5calendar quarters (excluding the month of highest liability and
6the month of lowest liability in such 4 quarter period). If the
7month during which such tax liability is incurred begins on or
8after January 1, 1985, and prior to January 1, 1987, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 27.5% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1987, and prior to January 1, 1988, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 26.25% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1988, and prior to January 1, 1989, or
19begins on or after January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year. If the month during which
23such tax liability is incurred begins on or after January 1,
241989, and prior to January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

 

 

HB4378- 23 -LRB099 15640 HLH 39933 b

1calendar month of the preceding year or 100% of the taxpayer's
2actual liability for the quarter monthly reporting period. The
3amount of such quarter monthly payments shall be credited
4against the final tax liability of the taxpayer's return for
5that month. Before October 1, 2000, once applicable, the
6requirement of the making of quarter monthly payments to the
7Department shall continue until such taxpayer's average
8monthly liability to the Department during the preceding 4
9complete calendar quarters (excluding the month of highest
10liability and the month of lowest liability) is less than
11$9,000, or until such taxpayer's average monthly liability to
12the Department as computed for each calendar quarter of the 4
13preceding complete calendar quarter period is less than
14$10,000. However, if a taxpayer can show the Department that a
15substantial change in the taxpayer's business has occurred
16which causes the taxpayer to anticipate that his average
17monthly tax liability for the reasonably foreseeable future
18will fall below the $10,000 threshold stated above, then such
19taxpayer may petition the Department for change in such
20taxpayer's reporting status. On and after October 1, 2000, once
21applicable, the requirement of the making of quarter monthly
22payments to the Department shall continue until such taxpayer's
23average monthly liability to the Department during the
24preceding 4 complete calendar quarters (excluding the month of
25highest liability and the month of lowest liability) is less
26than $19,000 or until such taxpayer's average monthly liability

 

 

HB4378- 24 -LRB099 15640 HLH 39933 b

1to the Department as computed for each calendar quarter of the
24 preceding complete calendar quarter period is less than
3$20,000. However, if a taxpayer can show the Department that a
4substantial change in the taxpayer's business has occurred
5which causes the taxpayer to anticipate that his average
6monthly tax liability for the reasonably foreseeable future
7will fall below the $20,000 threshold stated above, then such
8taxpayer may petition the Department for a change in such
9taxpayer's reporting status. The Department shall change such
10taxpayer's reporting status unless it finds that such change is
11seasonal in nature and not likely to be long term. If any such
12quarter monthly payment is not paid at the time or in the
13amount required by this Section, then the taxpayer shall be
14liable for penalties and interest on the difference between the
15minimum amount due and the amount of such quarter monthly
16payment actually and timely paid, except insofar as the
17taxpayer has previously made payments for that month to the
18Department in excess of the minimum payments previously due as
19provided in this Section. The Department shall make reasonable
20rules and regulations to govern the quarter monthly payment
21amount and quarter monthly payment dates for taxpayers who file
22on other than a calendar monthly basis.
23    If any such payment provided for in this Section exceeds
24the taxpayer's liabilities under this Act, the Retailers'
25Occupation Tax Act, the Service Occupation Tax Act and the
26Service Use Tax Act, as shown by an original monthly return,

 

 

HB4378- 25 -LRB099 15640 HLH 39933 b

1the Department shall issue to the taxpayer a credit memorandum
2no later than 30 days after the date of payment, which
3memorandum may be submitted by the taxpayer to the Department
4in payment of tax liability subsequently to be remitted by the
5taxpayer to the Department or be assigned by the taxpayer to a
6similar taxpayer under this Act, the Retailers' Occupation Tax
7Act, the Service Occupation Tax Act or the Service Use Tax Act,
8in accordance with reasonable rules and regulations to be
9prescribed by the Department, except that if such excess
10payment is shown on an original monthly return and is made
11after December 31, 1986, no credit memorandum shall be issued,
12unless requested by the taxpayer. If no such request is made,
13the taxpayer may credit such excess payment against tax
14liability subsequently to be remitted by the taxpayer to the
15Department under this Act, the Retailers' Occupation Tax Act,
16the Service Occupation Tax Act or the Service Use Tax Act, in
17accordance with reasonable rules and regulations prescribed by
18the Department. If the Department subsequently determines that
19all or any part of the credit taken was not actually due to the
20taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
21be reduced by 2.1% or 1.75% of the difference between the
22credit taken and that actually due, and the taxpayer shall be
23liable for penalties and interest on such difference.
24    If the retailer is otherwise required to file a monthly
25return and if the retailer's average monthly tax liability to
26the Department does not exceed $200, the Department may

 

 

HB4378- 26 -LRB099 15640 HLH 39933 b

1authorize his returns to be filed on a quarter annual basis,
2with the return for January, February, and March of a given
3year being due by April 20 of such year; with the return for
4April, May and June of a given year being due by July 20 of such
5year; with the return for July, August and September of a given
6year being due by October 20 of such year, and with the return
7for October, November and December of a given year being due by
8January 20 of the following year.
9    If the retailer is otherwise required to file a monthly or
10quarterly return and if the retailer's average monthly tax
11liability to the Department does not exceed $50, the Department
12may authorize his returns to be filed on an annual basis, with
13the return for a given year being due by January 20 of the
14following year.
15    Such quarter annual and annual returns, as to form and
16substance, shall be subject to the same requirements as monthly
17returns.
18    Notwithstanding any other provision in this Act concerning
19the time within which a retailer may file his return, in the
20case of any retailer who ceases to engage in a kind of business
21which makes him responsible for filing returns under this Act,
22such retailer shall file a final return under this Act with the
23Department not more than one month after discontinuing such
24business.
25    In addition, with respect to motor vehicles, watercraft,
26aircraft, and trailers that are required to be registered with

 

 

HB4378- 27 -LRB099 15640 HLH 39933 b

1an agency of this State, every retailer selling this kind of
2tangible personal property shall file, with the Department,
3upon a form to be prescribed and supplied by the Department, a
4separate return for each such item of tangible personal
5property which the retailer sells, except that if, in the same
6transaction, (i) a retailer of aircraft, watercraft, motor
7vehicles or trailers transfers more than one aircraft,
8watercraft, motor vehicle or trailer to another aircraft,
9watercraft, motor vehicle or trailer retailer for the purpose
10of resale or (ii) a retailer of aircraft, watercraft, motor
11vehicles, or trailers transfers more than one aircraft,
12watercraft, motor vehicle, or trailer to a purchaser for use as
13a qualifying rolling stock as provided in Section 3-55 of this
14Act, then that seller may report the transfer of all the
15aircraft, watercraft, motor vehicles or trailers involved in
16that transaction to the Department on the same uniform
17invoice-transaction reporting return form. For purposes of
18this Section, "watercraft" means a Class 2, Class 3, or Class 4
19watercraft as defined in Section 3-2 of the Boat Registration
20and Safety Act, a personal watercraft, or any boat equipped
21with an inboard motor.
22    The transaction reporting return in the case of motor
23vehicles or trailers that are required to be registered with an
24agency of this State, shall be the same document as the Uniform
25Invoice referred to in Section 5-402 of the Illinois Vehicle
26Code and must show the name and address of the seller; the name

 

 

HB4378- 28 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 29 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 30 -LRB099 15640 HLH 39933 b

1whom, he must title or register the tangible personal property
2that is involved (if titling or registration is required) in
3support of such purchaser's application for an Illinois
4certificate or other evidence of title or registration to such
5tangible personal property.
6    No retailer's failure or refusal to remit tax under this
7Act precludes a user, who has paid the proper tax to the
8retailer, from obtaining his certificate of title or other
9evidence of title or registration (if titling or registration
10is required) upon satisfying the Department that such user has
11paid the proper tax (if tax is due) to the retailer. The
12Department shall adopt appropriate rules to carry out the
13mandate of this paragraph.
14    If the user who would otherwise pay tax to the retailer
15wants the transaction reporting return filed and the payment of
16tax or proof of exemption made to the Department before the
17retailer is willing to take these actions and such user has not
18paid the tax to the retailer, such user may certify to the fact
19of such delay by the retailer, and may (upon the Department
20being satisfied of the truth of such certification) transmit
21the information required by the transaction reporting return
22and the remittance for tax or proof of exemption directly to
23the Department and obtain his tax receipt or exemption
24determination, in which event the transaction reporting return
25and tax remittance (if a tax payment was required) shall be
26credited by the Department to the proper retailer's account

 

 

HB4378- 31 -LRB099 15640 HLH 39933 b

1with the Department, but without the 2.1% or 1.75% discount
2provided for in this Section being allowed. When the user pays
3the tax directly to the Department, he shall pay the tax in the
4same amount and in the same form in which it would be remitted
5if the tax had been remitted to the Department by the retailer.
6    Where a retailer collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the retailer refunds the selling price thereof to
10the purchaser, such retailer shall also refund, to the
11purchaser, the tax so collected from the purchaser. When filing
12his return for the period in which he refunds such tax to the
13purchaser, the retailer may deduct the amount of the tax so
14refunded by him to the purchaser from any other use tax which
15such retailer may be required to pay or remit to the
16Department, as shown by such return, if the amount of the tax
17to be deducted was previously remitted to the Department by
18such retailer. If the retailer has not previously remitted the
19amount of such tax to the Department, he is entitled to no
20deduction under this Act upon refunding such tax to the
21purchaser.
22    Any retailer filing a return under this Section shall also
23include (for the purpose of paying tax thereon) the total tax
24covered by such return upon the selling price of tangible
25personal property purchased by him at retail from a retailer,
26but as to which the tax imposed by this Act was not collected

 

 

HB4378- 32 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 33 -LRB099 15640 HLH 39933 b

1net revenue realized for the preceding month from the 6.25%
2general rate on the selling price of tangible personal property
3which is purchased outside Illinois at retail from a retailer
4and which is titled or registered by an agency of this State's
5government.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Sales Tax Reform Fund, a special
8fund in the State Treasury, 20% of the net revenue realized for
9the preceding month from the 6.25% general rate on the selling
10price of tangible personal property, other than tangible
11personal property which is purchased outside Illinois at retail
12from a retailer and which is titled or registered by an agency
13of this State's government.
14    Beginning February 1, 2017, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund 12.5% of the
16net revenue realized for the preceding month from the 10% rate
17on the selling price of firearms and firearm component parts.
18    Beginning February 1, 2017, each month the Department shall
19pay into the At-Risk Youth Assistance Fund 37.5% of the net
20revenue realized for the preceding month from the 10% rate on
21the selling price of firearms and firearm component parts.
22    Beginning August 1, 2000, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 100% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol. Beginning
26September 1, 2010, each month the Department shall pay into the

 

 

HB4378- 34 -LRB099 15640 HLH 39933 b

1State and Local Sales Tax Reform Fund 100% of the net revenue
2realized for the preceding month from the 1.25% rate on the
3selling price of sales tax holiday items.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund 16% of the net revenue
6realized for the preceding month from the 6.25% general rate on
7the selling price of tangible personal property which is
8purchased outside Illinois at retail from a retailer and which
9is titled or registered by an agency of this State's
10government.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17are now taxed at 6.25%.
18    Beginning July 1, 2011, each month the Department shall pay
19into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
20realized for the preceding month from the 6.25% general rate on
21the selling price of sorbents used in Illinois in the process
22of sorbent injection as used to comply with the Environmental
23Protection Act or the federal Clean Air Act, but the total
24payment into the Clean Air Act (CAA) Permit Fund under this Act
25and the Retailers' Occupation Tax Act shall not exceed
26$2,000,000 in any fiscal year.

 

 

HB4378- 35 -LRB099 15640 HLH 39933 b

1    Beginning July 1, 2013, each month the Department shall pay
2into the Underground Storage Tank Fund from the proceeds
3collected under this Act, the Service Use Tax Act, the Service
4Occupation Tax Act, and the Retailers' Occupation Tax Act an
5amount equal to the average monthly deficit in the Underground
6Storage Tank Fund during the prior year, as certified annually
7by the Illinois Environmental Protection Agency, but the total
8payment into the Underground Storage Tank Fund under this Act,
9the Service Use Tax Act, the Service Occupation Tax Act, and
10the Retailers' Occupation Tax Act shall not exceed $18,000,000
11in any State fiscal year. As used in this paragraph, the
12"average monthly deficit" shall be equal to the difference
13between the average monthly claims for payment by the fund and
14the average monthly revenues deposited into the fund, excluding
15payments made pursuant to this paragraph.
16    Beginning July 1, 2015, of the remainder of the moneys
17received by the Department under this Act, the Service Use Tax
18Act, the Service Occupation Tax Act, and the Retailers'
19Occupation Tax Act, each month the Department shall deposit
20$500,000 into the State Crime Laboratory Fund.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, (a) 1.75% thereof shall be paid into the
23Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24and after July 1, 1989, 3.8% thereof shall be paid into the
25Build Illinois Fund; provided, however, that if in any fiscal
26year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

 

 

HB4378- 36 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 37 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 38 -LRB099 15640 HLH 39933 b

1deemed to constitute payments pursuant to clause (b) of the
2preceding sentence and shall reduce the amount otherwise
3payable for such fiscal year pursuant to clause (b) of the
4preceding sentence. The moneys received by the Department
5pursuant to this Act and required to be deposited into the
6Build Illinois Fund are subject to the pledge, claim and charge
7set forth in Section 12 of the Build Illinois Bond Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of the sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000
261998 68,000,000

 

 

HB4378- 39 -LRB099 15640 HLH 39933 b

11999 71,000,000
22000 75,000,000
32001 80,000,000
42002 93,000,000
52003 99,000,000
62004103,000,000
72005108,000,000
82006113,000,000
92007119,000,000
102008126,000,000
112009132,000,000
122010139,000,000
132011146,000,000
142012153,000,000
152013161,000,000
162014170,000,000
172015179,000,000
182016189,000,000
192017199,000,000
202018210,000,000
212019221,000,000
222020233,000,000
232021246,000,000
242022260,000,000
252023275,000,000
262024 275,000,000

 

 

HB4378- 40 -LRB099 15640 HLH 39933 b

12025 275,000,000
22026 279,000,000
32027 292,000,000
42028 307,000,000
52029 322,000,000
62030 338,000,000
72031 350,000,000
82032 350,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

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1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total Deposit",
3has been deposited.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning July 1, 1993 and ending on September 30,
82013, the Department shall each month pay into the Illinois Tax
9Increment Fund 0.27% of 80% of the net revenue realized for the
10preceding month from the 6.25% general rate on the selling
11price of tangible personal property.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning with the receipt of the first report of
16taxes paid by an eligible business and continuing for a 25-year
17period, the Department shall each month pay into the Energy
18Infrastructure Fund 80% of the net revenue realized from the
196.25% general rate on the selling price of Illinois-mined coal
20that was sold to an eligible business. For purposes of this
21paragraph, the term "eligible business" means a new electric
22generating facility certified pursuant to Section 605-332 of
23the Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois.
25    Subject to payment of amounts into the Build Illinois Fund,
26the McCormick Place Expansion Project Fund, the Illinois Tax

 

 

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1Increment Fund, and the Energy Infrastructure Fund pursuant to
2the preceding paragraphs or in any amendments to this Section
3hereafter enacted, beginning on the first day of the first
4calendar month to occur on or after the effective date of this
5amendatory Act of the 98th General Assembly, each month, from
6the collections made under Section 9 of the Use Tax Act,
7Section 9 of the Service Use Tax Act, Section 9 of the Service
8Occupation Tax Act, and Section 3 of the Retailers' Occupation
9Tax Act, the Department shall pay into the Tax Compliance and
10Administration Fund, to be used, subject to appropriation, to
11fund additional auditors and compliance personnel at the
12Department of Revenue, an amount equal to 1/12 of 5% of 80% of
13the cash receipts collected during the preceding fiscal year by
14the Audit Bureau of the Department under the Use Tax Act, the
15Service Use Tax Act, the Service Occupation Tax Act, the
16Retailers' Occupation Tax Act, and associated local occupation
17and use taxes administered by the Department.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, 75% thereof shall be paid into the State
20Treasury and 25% shall be reserved in a special account and
21used only for the transfer to the Common School Fund as part of
22the monthly transfer from the General Revenue Fund in
23accordance with Section 8a of the State Finance Act.
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

 

 

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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    For greater simplicity of administration, manufacturers,
10importers and wholesalers whose products are sold at retail in
11Illinois by numerous retailers, and who wish to do so, may
12assume the responsibility for accounting and paying to the
13Department all tax accruing under this Act with respect to such
14sales, if the retailers who are affected do not make written
15objection to the Department to this arrangement.
16(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1798-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
188-26-14; 99-352, eff. 8-12-15.)
 
19    Section 15. The Service Use Tax Act is amended by changing
20Sections 3-10 and 9 as follows:
 
21    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24the selling price of tangible personal property transferred as

 

 

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1an incident to the sale of service, but, for the purpose of
2computing this tax, in no event shall the selling price be less
3than the cost price of the property to the serviceman.
4    Beginning January 1, 2017, with respect to firearms, as
5defined in Section 1.1 of the Firearm Owners Identification
6Card Act, and firearm component parts that are sold separately
7from the firearm and are necessary for the firearm to function
8in its intended manner, the tax is imposed at the rate of 10%.
9    Beginning on July 1, 2000 and through December 31, 2000,
10with respect to motor fuel, as defined in Section 1.1 of the
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act applies to (i) 70% of the selling price
15of property transferred as an incident to the sale of service
16on or after January 1, 1990, and before July 1, 2003, (ii) 80%
17of the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2018, and (iii) 100% of the selling price
20thereafter. If, at any time, however, the tax under this Act on
21sales of gasohol, as defined in the Use Tax Act, is imposed at
22the rate of 1.25%, then the tax imposed by this Act applies to
23100% of the proceeds of sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the selling price of property transferred as an incident to

 

 

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1the sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before December 31, 2018 and
9(ii) 100% of the proceeds of the selling price thereafter. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16    With respect to 100% biodiesel, as defined in the Use Tax
17Act, and biodiesel blends, as defined in the Use Tax Act, with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of the selling price
20of property transferred as an incident to the sale of service
21on or after July 1, 2003 and on or before December 31, 2018 but
22applies to 100% of the selling price thereafter.
23    At the election of any registered serviceman made for each
24fiscal year, sales of service in which the aggregate annual
25cost price of tangible personal property transferred as an
26incident to the sales of service is less than 35%, or 75% in

 

 

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1the case of servicemen transferring prescription drugs or
2servicemen engaged in graphic arts production, of the aggregate
3annual total gross receipts from all sales of service, the tax
4imposed by this Act shall be based on the serviceman's cost
5price of the tangible personal property transferred as an
6incident to the sale of those services.
7    The tax shall be imposed at the rate of 1% on food prepared
8for immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
12Act, the Specialized Mental Health Rehabilitation Act of 2013,
13or the Child Care Act of 1969. The tax shall also be imposed at
14the rate of 1% on food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption and is not otherwise
18included in this paragraph) and prescription and
19nonprescription medicines, drugs, medical appliances,
20modifications to a motor vehicle for the purpose of rendering
21it usable by a person with a disability, and insulin, urine
22testing materials, syringes, and needles used by diabetics, for
23human use. For the purposes of this Section, until September 1,
242009: the term "soft drinks" means any complete, finished,
25ready-to-use, non-alcoholic drink, whether carbonated or not,
26including but not limited to soda water, cola, fruit juice,

 

 

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1vegetable juice, carbonated water, and all other preparations
2commonly known as soft drinks of whatever kind or description
3that are contained in any closed or sealed bottle, can, carton,
4or container, regardless of size; but "soft drinks" does not
5include coffee, tea, non-carbonated water, infant formula,
6milk or milk products as defined in the Grade A Pasteurized
7Milk and Milk Products Act, or drinks containing 50% or more
8natural fruit or vegetable juice.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "soft drinks" means non-alcoholic
11beverages that contain natural or artificial sweeteners. "Soft
12drinks" do not include beverages that contain milk or milk
13products, soy, rice or similar milk substitutes, or greater
14than 50% of vegetable or fruit juice by volume.
15    Until August 1, 2009, and notwithstanding any other
16provisions of this Act, "food for human consumption that is to
17be consumed off the premises where it is sold" includes all
18food sold through a vending machine, except soft drinks and
19food products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine. Beginning
21August 1, 2009, and notwithstanding any other provisions of
22this Act, "food for human consumption that is to be consumed
23off the premises where it is sold" includes all food sold
24through a vending machine, except soft drinks, candy, and food
25products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine.

 

 

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1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "food for human consumption that
3is to be consumed off the premises where it is sold" does not
4include candy. For purposes of this Section, "candy" means a
5preparation of sugar, honey, or other natural or artificial
6sweeteners in combination with chocolate, fruits, nuts or other
7ingredients or flavorings in the form of bars, drops, or
8pieces. "Candy" does not include any preparation that contains
9flour or requires refrigeration.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "nonprescription medicines and
12drugs" does not include grooming and hygiene products. For
13purposes of this Section, "grooming and hygiene products"
14includes, but is not limited to, soaps and cleaning solutions,
15shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
16lotions and screens, unless those products are available by
17prescription only, regardless of whether the products meet the
18definition of "over-the-counter-drugs". For the purposes of
19this paragraph, "over-the-counter-drug" means a drug for human
20use that contains a label that identifies the product as a drug
21as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
22label includes:
23        (A) A "Drug Facts" panel; or
24        (B) A statement of the "active ingredient(s)" with a
25    list of those ingredients contained in the compound,
26    substance or preparation.

 

 

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1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Pilot Program Act.
6    If the property that is acquired from a serviceman is
7acquired outside Illinois and used outside Illinois before
8being brought to Illinois for use here and is taxable under
9this Act, the "selling price" on which the tax is computed
10shall be reduced by an amount that represents a reasonable
11allowance for depreciation for the period of prior out-of-state
12use.
13(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1498-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
157-29-15; revised 10-16-15.)
 
16    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
17    Sec. 9. Each serviceman required or authorized to collect
18the tax herein imposed shall pay to the Department the amount
19of such tax (except as otherwise provided) at the time when he
20is required to file his return for the period during which such
21tax was collected, less a discount of 2.1% prior to January 1,
221990 and 1.75% on and after January 1, 1990, or $5 per calendar
23year, whichever is greater, which is allowed to reimburse the
24serviceman for expenses incurred in collecting the tax, keeping
25records, preparing and filing returns, remitting the tax and

 

 

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

 

 

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1        3. The total amount of taxable receipts received by him
2    during the preceding calendar month, including receipts
3    from charge and time sales, but less all deductions allowed
4    by law;
5        4. The amount of credit provided in Section 2d of this
6    Act;
7        5. The amount of tax due;
8        5-5. The signature of the taxpayer; and
9        6. Such other reasonable information as the Department
10    may require.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1995, a taxpayer who has
22an average monthly tax liability of $50,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 2000, a taxpayer who has
25an annual tax liability of $200,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1registered by an agency of this State's government.
2    Beginning February 1, 2017, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund 12.5% of the
4net revenue realized for the preceding month from the 10% rate
5on the selling price of firearms and firearm component parts.
6    Beginning February 1, 2017, each month the Department shall
7pay into the At-Risk Youth Assistance Fund 37.5% of the net
8revenue realized for the preceding month from the 10% rate on
9the selling price of firearms and firearm component parts.
10    Beginning August 1, 2000, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 100% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21    Beginning July 1, 2013, each month the Department shall pay
22into the Underground Storage Tank Fund from the proceeds
23collected under this Act, the Use Tax Act, the Service
24Occupation Tax Act, and the Retailers' Occupation Tax Act an
25amount equal to the average monthly deficit in the Underground
26Storage Tank Fund during the prior year, as certified annually

 

 

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1by the Illinois Environmental Protection Agency, but the total
2payment into the Underground Storage Tank Fund under this Act,
3the Use Tax Act, the Service Occupation Tax Act, and the
4Retailers' Occupation Tax Act shall not exceed $18,000,000 in
5any State fiscal year. As used in this paragraph, the "average
6monthly deficit" shall be equal to the difference between the
7average monthly claims for payment by the fund and the average
8monthly revenues deposited into the fund, excluding payments
9made pursuant to this paragraph.
10    Beginning July 1, 2015, of the remainder of the moneys
11received by the Department under the Use Tax Act, this Act, the
12Service Occupation Tax Act, and the Retailers' Occupation Tax
13Act, each month the Department shall deposit $500,000 into the
14State Crime Laboratory Fund.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

 

 

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

 

 

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

 

 

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1set forth in Section 12 of the Build Illinois Bond Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of the sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

 

 

HB4378- 61 -LRB099 15640 HLH 39933 b

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

 

 

HB4378- 62 -LRB099 15640 HLH 39933 b

12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois Tax
4Increment Fund 0.27% of 80% of the net revenue realized for the
5preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a 25-year
12period, the Department shall each month pay into the Energy
13Infrastructure Fund 80% of the net revenue realized from the
146.25% general rate on the selling price of Illinois-mined coal
15that was sold to an eligible business. For purposes of this
16paragraph, the term "eligible business" means a new electric
17generating facility certified pursuant to Section 605-332 of
18the Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    Subject to payment of amounts into the Build Illinois Fund,
21the McCormick Place Expansion Project Fund, the Illinois Tax
22Increment Fund, and the Energy Infrastructure Fund pursuant to
23the preceding paragraphs or in any amendments to this Section
24hereafter enacted, beginning on the first day of the first
25calendar month to occur on or after the effective date of this
26amendatory Act of the 98th General Assembly, each month, from

 

 

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1the collections made under Section 9 of the Use Tax Act,
2Section 9 of the Service Use Tax Act, Section 9 of the Service
3Occupation Tax Act, and Section 3 of the Retailers' Occupation
4Tax Act, the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% thereof shall be paid into the
15General Revenue Fund of the State Treasury and 25% shall be
16reserved in a special account and used only for the transfer to
17the Common School Fund as part of the monthly transfer from the
18General Revenue Fund in accordance with Section 8a of the State
19Finance Act.
20    As soon as possible after the first day of each month, upon
21certification of the Department of Revenue, the Comptroller
22shall order transferred and the Treasurer shall transfer from
23the General Revenue Fund to the Motor Fuel Tax Fund an amount
24equal to 1.7% of 80% of the net revenue realized under this Act
25for the second preceding month. Beginning April 1, 2000, this
26transfer is no longer required and shall not be made.

 

 

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1    Net revenue realized for a month shall be the revenue
2collected by the State pursuant to this Act, less the amount
3paid out during that month as refunds to taxpayers for
4overpayment of liability.
5(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
698-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
798-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
 
8    Section 20. The Service Occupation Tax Act is amended by
9changing Sections 3-10 and 9 as follows:
 
10    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the "selling price", as defined in Section 2 of the Service Use
14Tax Act, of the tangible personal property. For the purpose of
15computing this tax, in no event shall the "selling price" be
16less than the cost price to the serviceman of the tangible
17personal property transferred. The selling price of each item
18of tangible personal property transferred as an incident of a
19sale of service may be shown as a distinct and separate item on
20the serviceman's billing to the service customer. If the
21selling price is not so shown, the selling price of the
22tangible personal property is deemed to be 50% of the
23serviceman's entire billing to the service customer. When,
24however, a serviceman contracts to design, develop, and produce

 

 

HB4378- 66 -LRB099 15640 HLH 39933 b

1special order machinery or equipment, the tax imposed by this
2Act shall be based on the serviceman's cost price of the
3tangible personal property transferred incident to the
4completion of the contract.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning January 1, 2017, with respect to firearms, as
10defined in Section 1.1 of the Firearm Owners Identification
11Card Act, and firearm component parts that are sold separately
12from the firearm and are necessary for the firearm to function
13in its intended manner, the tax is imposed at the rate of 10%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act shall apply to (i) 70% of the cost
16price of property transferred as an incident to the sale of
17service on or after January 1, 1990, and before July 1, 2003,
18(ii) 80% of the selling price of property transferred as an
19incident to the sale of service on or after July 1, 2003 and on
20or before December 31, 2018, and (iii) 100% of the cost price
21thereafter. If, at any time, however, the tax under this Act on
22sales of gasohol, as defined in the Use Tax Act, is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

HB4378- 67 -LRB099 15640 HLH 39933 b

1to the selling price of property transferred as an incident to
2the sale of service on or after July 1, 2003 and on or before
3December 31, 2018 but applies to 100% of the selling price
4thereafter.
5    With respect to biodiesel blends, as defined in the Use Tax
6Act, with no less than 1% and no more than 10% biodiesel, the
7tax imposed by this Act applies to (i) 80% of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2018 and
10(ii) 100% of the proceeds of the selling price thereafter. If,
11at any time, however, the tax under this Act on sales of
12biodiesel blends, as defined in the Use Tax Act, with no less
13than 1% and no more than 10% biodiesel is imposed at the rate
14of 1.25%, then the tax imposed by this Act applies to 100% of
15the proceeds of sales of biodiesel blends with no less than 1%
16and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, with
19more than 10% but no more than 99% biodiesel material, the tax
20imposed by this Act does not apply to the proceeds of the
21selling price of property transferred as an incident to the
22sale of service on or after July 1, 2003 and on or before
23December 31, 2018 but applies to 100% of the selling price
24thereafter.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

HB4378- 68 -LRB099 15640 HLH 39933 b

1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the aggregate
5annual total gross receipts from all sales of service, the tax
6imposed by this Act shall be based on the serviceman's cost
7price of the tangible personal property transferred incident to
8the sale of those services.
9    The tax shall be imposed at the rate of 1% on food prepared
10for immediate consumption and transferred incident to a sale of
11service subject to this Act or the Service Occupation Tax Act
12by an entity licensed under the Hospital Licensing Act, the
13Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
14Act, the Specialized Mental Health Rehabilitation Act of 2013,
15or the Child Care Act of 1969. The tax shall also be imposed at
16the rate of 1% on food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, soft drinks, and food that has been
19prepared for immediate consumption and is not otherwise
20included in this paragraph) and prescription and
21nonprescription medicines, drugs, medical appliances,
22modifications to a motor vehicle for the purpose of rendering
23it usable by a person with a disability, and insulin, urine
24testing materials, syringes, and needles used by diabetics, for
25human use. For the purposes of this Section, until September 1,
262009: the term "soft drinks" means any complete, finished,

 

 

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1ready-to-use, non-alcoholic drink, whether carbonated or not,
2including but not limited to soda water, cola, fruit juice,
3vegetable juice, carbonated water, and all other preparations
4commonly known as soft drinks of whatever kind or description
5that are contained in any closed or sealed can, carton, or
6container, regardless of size; but "soft drinks" does not
7include coffee, tea, non-carbonated water, infant formula,
8milk or milk products as defined in the Grade A Pasteurized
9Milk and Milk Products Act, or drinks containing 50% or more
10natural fruit or vegetable juice.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "soft drinks" means non-alcoholic
13beverages that contain natural or artificial sweeteners. "Soft
14drinks" do not include beverages that contain milk or milk
15products, soy, rice or similar milk substitutes, or greater
16than 50% of vegetable or fruit juice by volume.
17    Until August 1, 2009, and notwithstanding any other
18provisions of this Act, "food for human consumption that is to
19be consumed off the premises where it is sold" includes all
20food sold through a vending machine, except soft drinks and
21food products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine. Beginning
23August 1, 2009, and notwithstanding any other provisions of
24this Act, "food for human consumption that is to be consumed
25off the premises where it is sold" includes all food sold
26through a vending machine, except soft drinks, candy, and food

 

 

HB4378- 70 -LRB099 15640 HLH 39933 b

1products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "food for human consumption that
5is to be consumed off the premises where it is sold" does not
6include candy. For purposes of this Section, "candy" means a
7preparation of sugar, honey, or other natural or artificial
8sweeteners in combination with chocolate, fruits, nuts or other
9ingredients or flavorings in the form of bars, drops, or
10pieces. "Candy" does not include any preparation that contains
11flour or requires refrigeration.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "nonprescription medicines and
14drugs" does not include grooming and hygiene products. For
15purposes of this Section, "grooming and hygiene products"
16includes, but is not limited to, soaps and cleaning solutions,
17shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
18lotions and screens, unless those products are available by
19prescription only, regardless of whether the products meet the
20definition of "over-the-counter-drugs". For the purposes of
21this paragraph, "over-the-counter-drug" means a drug for human
22use that contains a label that identifies the product as a drug
23as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
24label includes:
25        (A) A "Drug Facts" panel; or
26        (B) A statement of the "active ingredient(s)" with a

 

 

HB4378- 71 -LRB099 15640 HLH 39933 b

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Pilot Program Act.
8(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
998-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
107-29-15; revised 10-16-15.)
 
11    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
12    Sec. 9. Each serviceman required or authorized to collect
13the tax herein imposed shall pay to the Department the amount
14of such tax at the time when he is required to file his return
15for the period during which such tax was collectible, less a
16discount of 2.1% prior to January 1, 1990, and 1.75% on and
17after January 1, 1990, or $5 per calendar year, whichever is
18greater, which is allowed to reimburse the serviceman for
19expenses incurred in collecting the tax, keeping records,
20preparing and filing returns, remitting the tax and supplying
21data to the Department on request. The Department may disallow
22the discount for servicemen whose certificate of registration
23is revoked at the time the return is filed, but only if the
24Department's decision to revoke the certificate of
25registration has become final.

 

 

HB4378- 72 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 73 -LRB099 15640 HLH 39933 b

1    during the preceding calendar month, including receipts
2    from charge and time sales, but less all deductions allowed
3    by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due;
7        5-5. The signature of the taxpayer; and
8        6. Such other reasonable information as the Department
9    may require.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    Prior to October 1, 2003, and on and after September 1,
152004 a serviceman may accept a Manufacturer's Purchase Credit
16certification from a purchaser in satisfaction of Service Use
17Tax as provided in Section 3-70 of the Service Use Tax Act if
18the purchaser provides the appropriate documentation as
19required by Section 3-70 of the Service Use Tax Act. A
20Manufacturer's Purchase Credit certification, accepted prior
21to October 1, 2003 or on or after September 1, 2004 by a
22serviceman as provided in Section 3-70 of the Service Use Tax
23Act, may be used by that serviceman to satisfy Service
24Occupation Tax liability in the amount claimed in the
25certification, not to exceed 6.25% of the receipts subject to
26tax from a qualifying purchase. A Manufacturer's Purchase

 

 

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1Credit reported on any original or amended return filed under
2this Act after October 20, 2003 for reporting periods prior to
3September 1, 2004 shall be disallowed. Manufacturer's Purchase
4Credit reported on annual returns due on or after January 1,
52005 will be disallowed for periods prior to September 1, 2004.
6No Manufacturer's Purchase Credit may be used after September
730, 2003 through August 31, 2004 to satisfy any tax liability
8imposed under this Act, including any audit liability.
9    If the serviceman's average monthly tax liability to the
10Department does not exceed $200, the Department may authorize
11his returns to be filed on a quarter annual basis, with the
12return for January, February and March of a given year being
13due by April 20 of such year; with the return for April, May
14and June of a given year being due by July 20 of such year; with
15the return for July, August and September of a given year being
16due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19    If the serviceman's average monthly tax liability to the
20Department does not exceed $50, the Department may authorize
21his returns to be filed on an annual basis, with the return for
22a given year being due by January 20 of the following 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

 

 

HB4378- 75 -LRB099 15640 HLH 39933 b

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    Beginning October 1, 1993, a taxpayer who has an average
8monthly tax liability of $150,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. Beginning October 1, 1994, a taxpayer who has
11an average monthly tax liability of $100,000 or more shall make
12all payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1995, a taxpayer who has
14an average monthly tax liability of $50,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 2000, a taxpayer who has
17an annual tax liability of $200,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. The term "annual tax liability" shall be the
20sum of the taxpayer's liabilities under this Act, and under all
21other State and local occupation and use tax laws administered
22by the Department, for the immediately preceding calendar year.
23The term "average monthly tax liability" means the sum of the
24taxpayer's liabilities under this Act, and under all other
25State and local occupation and use tax laws administered by the
26Department, for the immediately preceding calendar year

 

 

HB4378- 76 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 77 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 78 -LRB099 15640 HLH 39933 b

1is sold (other than alcoholic beverages, soft drinks and food
2which has been prepared for immediate consumption) and
3prescription and nonprescription medicines, drugs, medical
4appliances and insulin, urine testing materials, syringes and
5needles used by diabetics.
6    Beginning January 1, 1990, each month the Department shall
7pay into the County and Mass Transit District Fund 4% of the
8revenue realized for the preceding month from the 6.25% general
9rate.
10    Beginning August 1, 2000, each month the Department shall
11pay into the County and Mass Transit District Fund 20% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol.
14    Beginning January 1, 1990, each month the Department shall
15pay into the Local Government Tax Fund 16% of the revenue
16realized for the preceding month from the 6.25% general rate on
17transfers of tangible personal property.
18    Beginning August 1, 2000, each month the Department shall
19pay into the Local Government Tax Fund 80% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of motor fuel and gasohol.
22    Beginning February 1, 2017, each month the Department shall
23pay into the Local Government Tax Fund 10% of the net revenue
24realized for the preceding month from the 10% rate on the
25selling price of firearms and firearm component parts.
26    Beginning February 1, 2017, each month the Department shall

 

 

HB4378- 79 -LRB099 15640 HLH 39933 b

1pay into the County and Mass Transit District Fund 2.5% of the
2net revenue realized for the preceding month from the 10% rate
3on the selling price of firearms and firearm component parts.
4    Beginning February 1, 2017, each month the Department shall
5pay into the At-Risk Youth Assistance Fund 37.5% of the net
6revenue realized for the preceding month from the 10% rate on
7the selling price of firearms and firearm component parts.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are now taxed at 6.25%.
15    Beginning July 1, 2013, each month the Department shall pay
16into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Retailers' Occupation Tax Act an amount equal to
19the average monthly deficit in the Underground Storage Tank
20Fund during the prior year, as certified annually by the
21Illinois Environmental Protection Agency, but the total
22payment into the Underground Storage Tank Fund under this Act,
23the Use Tax Act, the Service Use Tax Act, and the Retailers'
24Occupation Tax Act shall not exceed $18,000,000 in any State
25fiscal year. As used in this paragraph, the "average monthly
26deficit" shall be equal to the difference between the average

 

 

HB4378- 80 -LRB099 15640 HLH 39933 b

1monthly claims for payment by the fund and the average monthly
2revenues deposited into the fund, excluding payments made
3pursuant to this paragraph.
4    Beginning July 1, 2015, of the remainder of the moneys
5received by the Department under the Use Tax Act, the Service
6Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
7each month the Department shall deposit $500,000 into the State
8Crime Laboratory Fund.
9    Of the remainder of the moneys received by the Department
10pursuant to this Act, (a) 1.75% thereof shall be paid into the
11Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
12and after July 1, 1989, 3.8% thereof shall be paid into the
13Build Illinois Fund; provided, however, that if in any fiscal
14year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
15may be, of the moneys received by the Department and required
16to be paid into the Build Illinois Fund pursuant to Section 3
17of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
18Act, Section 9 of the Service Use Tax Act, and Section 9 of the
19Service Occupation Tax Act, such Acts being hereinafter called
20the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
21may be, of moneys being hereinafter called the "Tax Act
22Amount", and (2) the amount transferred to the Build Illinois
23Fund from the State and Local Sales Tax Reform Fund shall be
24less than the Annual Specified Amount (as defined in Section 3
25of the Retailers' Occupation Tax Act), an amount equal to the
26difference shall be immediately paid into the Build Illinois

 

 

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

 

 

HB4378- 82 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 84 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 85 -LRB099 15640 HLH 39933 b

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 and ending on September 30,
232013, the Department shall each month pay into the Illinois Tax
24Increment Fund 0.27% of 80% of the net revenue realized for the
25preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

 

 

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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    Subject to payment of amounts into the Build Illinois Fund,
15the McCormick Place Expansion Project Fund, the Illinois Tax
16Increment Fund, and the Energy Infrastructure Fund pursuant to
17the preceding paragraphs or in any amendments to this Section
18hereafter enacted, beginning on the first day of the first
19calendar month to occur on or after the effective date of this
20amendatory Act of the 98th General Assembly, each month, from
21the collections made under Section 9 of the Use Tax Act,
22Section 9 of the Service Use Tax Act, Section 9 of the Service
23Occupation Tax Act, and Section 3 of the Retailers' Occupation
24Tax Act, the Department shall pay into the Tax Compliance and
25Administration Fund, to be used, subject to appropriation, to
26fund additional auditors and compliance personnel at the

 

 

HB4378- 87 -LRB099 15640 HLH 39933 b

1Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2the cash receipts collected during the preceding fiscal year by
3the Audit Bureau of the Department under the Use Tax Act, the
4Service Use Tax Act, the Service Occupation Tax Act, the
5Retailers' Occupation Tax Act, and associated local occupation
6and use taxes administered by the Department.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, 75% shall be paid into the General
9Revenue Fund of the State Treasury and 25% shall be reserved in
10a special account and used only for the transfer to the Common
11School Fund as part of the monthly transfer from the General
12Revenue Fund in accordance with Section 8a of the State Finance
13Act.
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

 

 

HB4378- 88 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 89 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 90 -LRB099 15640 HLH 39933 b

1not make written objection to the Department to this
2arrangement.
3(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
498-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
598-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
 
6    Section 25. The Retailers' Occupation Tax Act is amended by
7changing Sections 2-10 and 3 as follows:
 
8    (35 ILCS 120/2-10)
9    Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made in
12the course of business.
13    Beginning January 1, 2017, with respect to firearms, as
14defined in Section 1.1 of the Firearm Owners Identification
15Card Act, and firearm component parts that are sold separately
16from the firearm and are necessary for the firearm to function
17in its intended manner, the tax is imposed at the rate of 10%.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 2-8 of
24this Act, the tax is imposed at the rate of 1.25%.

 

 

HB4378- 91 -LRB099 15640 HLH 39933 b

1    Within 14 days after the effective date of this amendatory
2Act of the 91st General Assembly, each retailer of motor fuel
3and gasohol shall cause the following notice to be posted in a
4prominently visible place on each retail dispensing device that
5is used to dispense motor fuel or gasohol in the State of
6Illinois: "As of July 1, 2000, the State of Illinois has
7eliminated the State's share of sales tax on motor fuel and
8gasohol through December 31, 2000. The price on this pump
9should reflect the elimination of the tax." The notice shall be
10printed in bold print on a sign that is no smaller than 4
11inches by 8 inches. The sign shall be clearly visible to
12customers. Any retailer who fails to post or maintain a
13required sign through December 31, 2000 is guilty of a petty
14offense for which the fine shall be $500 per day per each
15retail premises where a violation occurs.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act applies to (i) 70% of the proceeds of
18sales made on or after January 1, 1990, and before July 1,
192003, (ii) 80% of the proceeds of sales made on or after July
201, 2003 and on or before December 31, 2018, and (iii) 100% of
21the proceeds of sales made thereafter. If, at any time,
22however, the tax under this Act on sales of gasohol, as defined
23in the Use Tax Act, is imposed at the rate of 1.25%, then the
24tax imposed by this Act applies to 100% of the proceeds of
25sales of gasohol made during that time.
26    With respect to majority blended ethanol fuel, as defined

 

 

HB4378- 92 -LRB099 15640 HLH 39933 b

1in the Use Tax Act, the tax imposed by this Act does not apply
2to the proceeds of sales made on or after July 1, 2003 and on or
3before December 31, 2018 but applies to 100% of the proceeds of
4sales made thereafter.
5    With respect to biodiesel blends, as defined in the Use Tax
6Act, with no less than 1% and no more than 10% biodiesel, the
7tax imposed by this Act applies to (i) 80% of the proceeds of
8sales made on or after July 1, 2003 and on or before December
931, 2018 and (ii) 100% of the proceeds of sales made
10thereafter. If, at any time, however, the tax under this Act on
11sales of biodiesel blends, as defined in the Use Tax Act, with
12no less than 1% and no more than 10% biodiesel is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of biodiesel blends with no less
15than 1% and no more than 10% biodiesel made during that time.
16    With respect to 100% biodiesel, as defined in the Use Tax
17Act, and biodiesel blends, as defined in the Use Tax Act, with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2018 but
21applies to 100% of the proceeds of sales made thereafter.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption) and prescription and
26nonprescription medicines, drugs, medical appliances,

 

 

HB4378- 93 -LRB099 15640 HLH 39933 b

1modifications to a motor vehicle for the purpose of rendering
2it usable by a person with a disability, and insulin, urine
3testing materials, syringes, and needles used by diabetics, for
4human use, the tax is imposed at the rate of 1%. For the
5purposes of this Section, until September 1, 2009: the term
6"soft drinks" means any complete, finished, ready-to-use,
7non-alcoholic drink, whether carbonated or not, including but
8not limited to soda water, cola, fruit juice, vegetable juice,
9carbonated water, and all other preparations commonly known as
10soft drinks of whatever kind or description that are contained
11in any closed or sealed bottle, can, carton, or container,
12regardless of size; but "soft drinks" does not include coffee,
13tea, non-carbonated water, infant formula, milk or milk
14products as defined in the Grade A Pasteurized Milk and Milk
15Products Act, or drinks containing 50% or more natural fruit or
16vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" do not include beverages that contain milk or milk
21products, soy, rice or similar milk substitutes, or greater
22than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

HB4378- 94 -LRB099 15640 HLH 39933 b

1food products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine. Beginning
3August 1, 2009, and notwithstanding any other provisions of
4this Act, "food for human consumption that is to be consumed
5off the premises where it is sold" includes all food sold
6through a vending machine, except soft drinks, candy, and food
7products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "food for human consumption that
11is to be consumed off the premises where it is sold" does not
12include candy. For purposes of this Section, "candy" means a
13preparation of sugar, honey, or other natural or artificial
14sweeteners in combination with chocolate, fruits, nuts or other
15ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

 

 

HB4378- 95 -LRB099 15640 HLH 39933 b

1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from a
12registered dispensing organization under the Compassionate Use
13of Medical Cannabis Pilot Program Act.
14(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15.)
 
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

 

 

HB4378- 96 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 97 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 98 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 99 -LRB099 15640 HLH 39933 b

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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB4378- 111 -LRB099 15640 HLH 39933 b

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

 

 

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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

 

 

HB4378- 113 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 114 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 116 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 118 -LRB099 15640 HLH 39933 b

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
12are 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    Beginning July 1, 2013, each month the Department shall pay
23into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Use Tax Act, the Service Use Tax
25Act, and the Service Occupation Tax Act an amount equal to the
26average monthly deficit in the Underground Storage Tank Fund

 

 

HB4378- 119 -LRB099 15640 HLH 39933 b

1during the prior year, as certified annually by the Illinois
2Environmental Protection Agency, but the total payment into the
3Underground Storage Tank Fund under this Act, the Use Tax Act,
4the Service Use Tax Act, and the Service Occupation Tax Act
5shall not exceed $18,000,000 in any State fiscal year. As used
6in this paragraph, the "average monthly deficit" shall be equal
7to the difference between the average monthly claims for
8payment by the fund and the average monthly revenues deposited
9into the fund, excluding payments made pursuant to this
10paragraph.
11    Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under the Use Tax Act, the Service
13Use Tax Act, the Service Occupation Tax Act, and this Act, each
14month the Department shall deposit $500,000 into the State
15Crime Laboratory Fund.
16    Beginning February 1, 2017, each month the Department shall
17pay into the Local Government Tax Fund 10% of the net revenue
18realized for the preceding month from the 10% rate on the
19selling price of firearms and firearm component parts.
20    Beginning February 1, 2017, each month the Department shall
21pay into the County and Mass Transit District Fund 2.5% of the
22net revenue realized for the preceding month from the 10% rate
23on the selling price of firearms and firearm component parts.
24    Beginning February 1, 2017, each month the Department shall
25pay into the At-Risk Youth Assistance Fund 37.5% of the net
26revenue realized for the preceding month from the 10% rate on

 

 

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1the selling price of firearms and firearm component parts.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, (a) 1.75% thereof shall be paid into the
4Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
5and after July 1, 1989, 3.8% thereof shall be paid into the
6Build Illinois Fund; provided, however, that if in any fiscal
7year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
8may be, of the moneys received by the Department and required
9to be paid into the Build Illinois Fund pursuant to this Act,
10Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
11Act, and Section 9 of the Service Occupation Tax Act, such Acts
12being hereinafter called the "Tax Acts" and such aggregate of
132.2% or 3.8%, as the case may be, of moneys being hereinafter
14called the "Tax Act Amount", and (2) the amount transferred to
15the Build Illinois Fund from the State and Local Sales Tax
16Reform Fund shall be less than the Annual Specified Amount (as
17hereinafter defined), an amount equal to the difference shall
18be immediately paid into the Build Illinois Fund from other
19moneys received by the Department pursuant to the Tax Acts; the
20"Annual Specified Amount" means the amounts specified below for
21fiscal years 1986 through 1993:
22Fiscal YearAnnual Specified Amount
231986$54,800,000
241987$76,650,000
251988$80,480,000
261989$88,510,000

 

 

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11990$115,330,000
21991$145,470,000
31992$182,730,000
41993$206,520,000;
5and means the Certified Annual Debt Service Requirement (as
6defined in Section 13 of the Build Illinois Bond Act) or the
7Tax Act Amount, whichever is greater, for fiscal year 1994 and
8each fiscal year thereafter; and further provided, that if on
9the last business day of any month the sum of (1) the Tax Act
10Amount required to be deposited into the Build Illinois Bond
11Account in the Build Illinois Fund during such month and (2)
12the amount transferred to the Build Illinois Fund from the
13State and Local Sales Tax Reform Fund shall have been less than
141/12 of the Annual Specified Amount, an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and, further provided, that in no event shall the
18payments required under the preceding proviso result in
19aggregate payments into the Build Illinois Fund pursuant to
20this clause (b) for any fiscal year in excess of the greater of
21(i) the Tax Act Amount or (ii) the Annual Specified Amount for
22such fiscal year. The amounts payable into the Build Illinois
23Fund under clause (b) of the first sentence in this paragraph
24shall be payable only until such time as the aggregate amount
25on deposit under each trust indenture securing Bonds issued and
26outstanding pursuant to the Build Illinois Bond Act is

 

 

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1sufficient, taking into account any future investment income,
2to fully provide, in accordance with such indenture, for the
3defeasance of or the payment of the principal of, premium, if
4any, and interest on the Bonds secured by such indenture and on
5any Bonds expected to be issued thereafter and all fees and
6costs payable with respect thereto, all as certified by the
7Director of the Bureau of the Budget (now Governor's Office of
8Management and Budget). If on the last business day of any
9month in which Bonds are outstanding pursuant to the Build
10Illinois Bond Act, the aggregate of moneys deposited in the
11Build Illinois Bond Account in the Build Illinois Fund in such
12month shall be less than the amount required to be transferred
13in such month from the Build Illinois Bond Account to the Build
14Illinois Bond Retirement and Interest Fund pursuant to Section
1513 of the Build Illinois Bond Act, an amount equal to such
16deficiency shall be immediately paid from other moneys received
17by the Department pursuant to the Tax Acts to the Build
18Illinois Fund; provided, however, that any amounts paid to the
19Build Illinois Fund in any fiscal year pursuant to this
20sentence shall be deemed to constitute payments pursuant to
21clause (b) of the first sentence of this paragraph and shall
22reduce the amount otherwise payable for such fiscal year
23pursuant to that clause (b). The moneys received by the
24Department pursuant to this Act and required to be deposited
25into the Build Illinois Fund are subject to the pledge, claim
26and charge set forth in Section 12 of the Build Illinois Bond

 

 

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1Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

 

 

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12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

 

 

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12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois Tax
4Increment Fund 0.27% of 80% of the net revenue realized for the
5preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a 25-year
12period, the Department shall each month pay into the Energy
13Infrastructure Fund 80% of the net revenue realized from the
146.25% general rate on the selling price of Illinois-mined coal
15that was sold to an eligible business. For purposes of this
16paragraph, the term "eligible business" means a new electric
17generating facility certified pursuant to Section 605-332 of
18the Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    Subject to payment of amounts into the Build Illinois Fund,
21the McCormick Place Expansion Project Fund, the Illinois Tax
22Increment Fund, and the Energy Infrastructure Fund pursuant to
23the preceding paragraphs or in any amendments to this Section
24hereafter enacted, beginning on the first day of the first
25calendar month to occur on or after the effective date of this
26amendatory Act of the 98th General Assembly, each month, from

 

 

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1the collections made under Section 9 of the Use Tax Act,
2Section 9 of the Service Use Tax Act, Section 9 of the Service
3Occupation Tax Act, and Section 3 of the Retailers' Occupation
4Tax Act, the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% thereof shall be paid into the State
15Treasury and 25% shall be reserved in a special account and
16used only for the transfer to the Common School Fund as part of
17the monthly transfer from the General Revenue Fund in
18accordance with Section 8a of the State Finance Act.
19    The Department may, upon separate written notice to a
20taxpayer, require the taxpayer to prepare and file with the
21Department on a form prescribed by the Department within not
22less than 60 days after receipt of the notice an annual
23information return for the tax year specified in the notice.
24Such annual return to the Department shall include a statement
25of gross receipts as shown by the retailer's last Federal
26income tax return. If the total receipts of the business as

 

 

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

 

 

HB4378- 129 -LRB099 15640 HLH 39933 b

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

 

 

HB4378- 130 -LRB099 15640 HLH 39933 b

1importers and wholesalers whose products are sold at retail in
2Illinois by numerous retailers, and who wish to do so, may
3assume the responsibility for accounting and paying to the
4Department all tax accruing under this Act with respect to such
5sales, if the retailers who are affected do not make written
6objection to the Department to this arrangement.
7    Any person who promotes, organizes, provides retail
8selling space for concessionaires or other types of sellers at
9the Illinois State Fair, DuQuoin State Fair, county fairs,
10local fairs, art shows, flea markets and similar exhibitions or
11events, including any transient merchant as defined by Section
122 of the Transient Merchant Act of 1987, is required to file a
13report with the Department providing the name of the merchant's
14business, the name of the person or persons engaged in
15merchant's business, the permanent address and Illinois
16Retailers Occupation Tax Registration Number of the merchant,
17the dates and location of the event and other reasonable
18information that the Department may require. The report must be
19filed not later than the 20th day of the month next following
20the month during which the event with retail sales was held.
21Any person who fails to file a report required by this Section
22commits a business offense and is subject to a fine not to
23exceed $250.
24    Any person engaged in the business of selling tangible
25personal property at retail as a concessionaire or other type
26of seller at the Illinois State Fair, county fairs, art shows,

 

 

HB4378- 131 -LRB099 15640 HLH 39933 b

1flea markets and similar exhibitions or events, or any
2transient merchants, as defined by Section 2 of the Transient
3Merchant Act of 1987, may be required to make a daily report of
4the amount of such sales to the Department and to make a daily
5payment of the full amount of tax due. The Department shall
6impose this requirement when it finds that there is a
7significant risk of loss of revenue to the State at such an
8exhibition or event. Such a finding shall be based on evidence
9that a substantial number of concessionaires or other sellers
10who are not residents of Illinois will be engaging in the
11business of selling tangible personal property at retail at the
12exhibition or event, or other evidence of a significant risk of
13loss of revenue to the State. The Department shall notify
14concessionaires and other sellers affected by the imposition of
15this requirement. In the absence of notification by the
16Department, the concessionaires and other sellers shall file
17their returns as otherwise required in this Section.
18(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1998-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
208-26-14; 99-352, eff. 8-12-15.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.