Rep. Barbara Flynn Currie

Filed: 5/20/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1236

2    AMENDMENT NO. ______. Amend Senate Bill 1236 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-190 as follows:
 
7    (20 ILCS 2505/2505-190)  (was 20 ILCS 2505/39c-4)
8    Sec. 2505-190. Tax Compliance and Administration Fund.
9    (a) Amounts deposited into the Tax Compliance and
10Administration Fund, a special fund in the State treasury that
11is hereby created, must be appropriated to the Department to
12reimburse the Department for its costs of collecting,
13administering, and enforcing the tax laws that provide for
14deposits into the Fund. Moneys in the Fund shall consist of
15deposits provided for in tax laws, reimbursements, or other
16payments received from units of local government for

 

 

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1administering a local tax or fee on behalf of the unit of local
2government in accordance with the Local Tax Collection Act, or
3other payments designated for deposit into the Fund.
4    (b) As soon as possible after July 1, 2015, and as soon as
5possible after each July 1 thereafter, the Director of the
6Department of Revenue shall certify the balance in the Tax
7Compliance and Administration Fund as of July 1, less any
8amounts obligated, and the State Comptroller shall order
9transferred and the State Treasurer shall transfer from the Tax
10Compliance and Administration Fund to the General Revenue Fund
11the amount certified that exceeds $2,500,000.
12(Source: P.A. 98-1098, eff. 8-26-14.)
 
13    Section 10. The Retailers' Occupation Tax Act is amended by
14changing Section 11 as follows:
 
15    (35 ILCS 120/11)  (from Ch. 120, par. 450)
16    Sec. 11. All information received by the Department from
17returns filed under this Act, or from any investigation
18conducted under this Act, shall be confidential, except for
19official purposes, and any person who divulges any such
20information in any manner, except in accordance with a proper
21judicial order or as otherwise provided by law, shall be guilty
22of a Class B misdemeanor with a fine not to exceed $7,500.
23    Nothing in this Act prevents the Director of Revenue from
24publishing or making available to the public the names and

 

 

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1addresses of persons filing returns under this Act, or
2reasonable statistics concerning the operation of the tax by
3grouping the contents of returns so the information in any
4individual return is not disclosed.
5    Nothing in this Act prevents the Director of Revenue from
6divulging to the United States Government or the government of
7any other state, or any officer or agency thereof, for
8exclusively official purposes, information received by the
9Department in administering this Act, provided that such other
10governmental agency agrees to divulge requested tax
11information to the Department.
12    The Department's furnishing of information derived from a
13taxpayer's return or from an investigation conducted under this
14Act to the surety on a taxpayer's bond that has been furnished
15to the Department under this Act, either to provide notice to
16such surety of its potential liability under the bond or, in
17order to support the Department's demand for payment from such
18surety under the bond, is an official purpose within the
19meaning of this Section.
20    The furnishing upon request of information obtained by the
21Department from returns filed under this Act or investigations
22conducted under this Act to the Illinois Liquor Control
23Commission for official use is deemed to be an official purpose
24within the meaning of this Section.
25    Notice to a surety of potential liability shall not be
26given unless the taxpayer has first been notified, not less

 

 

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1than 10 days prior thereto, of the Department's intent to so
2notify the surety.
3    The furnishing upon request of the Auditor General, or his
4authorized agents, for official use, of returns filed and
5information related thereto under this Act is deemed to be an
6official purpose within the meaning of this Section.
7    Where an appeal or a protest has been filed on behalf of a
8taxpayer, the furnishing upon request of the attorney for the
9taxpayer of returns filed by the taxpayer and information
10related thereto under this Act is deemed to be an official
11purpose within the meaning of this Section.
12    The furnishing of financial information to a municipality
13or county, upon request of the chief executive officer Chief
14Executive thereof, is an official purpose within the meaning of
15this Section, provided the municipality or county agrees in
16writing to the requirements of this Section. Information
17provided to municipalities and counties under this paragraph
18shall be limited to: (1) the business name; (2) the business
19address; (3) the standard classification number assigned to the
20business; (4) net revenue distributed to the requesting
21municipality or county that is directly related to the
22requesting municipality's or county's local share of the
23proceeds under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act distributed from the Local Government Tax Fund, and, if
26applicable, any locally imposed retailers' occupation tax or

 

 

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1service occupation tax; and (5) (4) a listing of all businesses
2within the requesting municipality or county by account
3identification number and address. On and after July 1, 2015,
4the furnishing of financial information to municipalities and
5counties under this paragraph may be by electronic means.
6    Information so provided shall be subject to all
7confidentiality provisions of this Section. The written
8agreement shall provide for reciprocity, limitations on
9access, disclosure, and procedures for requesting information.
10Only the chief executive officer of the municipality or county
11may initiate the written agreement with the Department. The
12chief executive officer shall provide the Department with a
13list of names and official titles of municipal or county
14employees, as appropriate, designated by him or her as persons
15exclusively authorized to request return information, view
16return information, or receive related information on his or
17her behalf. This list shall be restricted solely to municipal
18or county employees, as appropriate, who are directly involved
19in the financial operations of the municipality or county, and
20the financial information provided by the Department shall not
21be viewed by or shared with anyone who is not on the list. The
22written agreement may be canceled by either the Department or
23the chief executive officer at any time and shall be canceled
24in the event of any unauthorized use or disclosure of State tax
25return information obtained pursuant to the written agreement
26or failure to abide by the procedures set forth in the

 

 

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1agreement by the Department for safeguarding the
2confidentiality of such return information.
3    The Department may make available to the Board of Trustees
4of any Metro East Mass Transit District information contained
5on transaction reporting returns required to be filed under
6Section 3 of this Act that report sales made within the
7boundary of the taxing authority of that Metro East Mass
8Transit District, as provided in Section 5.01 of the Local Mass
9Transit District Act. The disclosure shall be made pursuant to
10a written agreement between the Department and the Board of
11Trustees of a Metro East Mass Transit District, which is an
12official purpose within the meaning of this Section. The
13written agreement between the Department and the Board of
14Trustees of a Metro East Mass Transit District shall provide
15for reciprocity, limitations on access, disclosure, and
16procedures for requesting information. Information so provided
17shall be subject to all confidentiality provisions of this
18Section.
19    The Director may make available to any State agency,
20including the Illinois Supreme Court, which licenses persons to
21engage in any occupation, information that a person licensed by
22such agency has failed to file returns under this Act or pay
23the tax, penalty and interest shown therein, or has failed to
24pay any final assessment of tax, penalty or interest due under
25this Act. The Director may make available to any State agency,
26including the Illinois Supreme Court, information regarding

 

 

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1whether a bidder, contractor, or an affiliate of a bidder or
2contractor has failed to collect and remit Illinois Use tax on
3sales into Illinois, or any tax under this Act or pay the tax,
4penalty, and interest shown therein, or has failed to pay any
5final assessment of tax, penalty, or interest due under this
6Act, for the limited purpose of enforcing bidder and contractor
7certifications. The Director may make available to units of
8local government and school districts that require bidder and
9contractor certifications, as set forth in Sections 50-11 and
1050-12 of the Illinois Procurement Code, information regarding
11whether a bidder, contractor, or an affiliate of a bidder or
12contractor has failed to collect and remit Illinois Use tax on
13sales into Illinois, file returns under this Act, or pay the
14tax, penalty, and interest shown therein, or has failed to pay
15any final assessment of tax, penalty, or interest due under
16this Act, for the limited purpose of enforcing bidder and
17contractor certifications. For purposes of this Section, the
18term "affiliate" means any entity that (1) directly,
19indirectly, or constructively controls another entity, (2) is
20directly, indirectly, or constructively controlled by another
21entity, or (3) is subject to the control of a common entity.
22For purposes of this Section, an entity controls another entity
23if it owns, directly or individually, more than 10% of the
24voting securities of that entity. As used in this Section, the
25term "voting security" means a security that (1) confers upon
26the holder the right to vote for the election of members of the

 

 

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1board of directors or similar governing body of the business or
2(2) is convertible into, or entitles the holder to receive upon
3its exercise, a security that confers such a right to vote. A
4general partnership interest is a voting security.
5    The Director may make available to any State agency,
6including the Illinois Supreme Court, units of local
7government, and school districts, information regarding
8whether a bidder or contractor is an affiliate of a person who
9is not collecting and remitting Illinois Use taxes for the
10limited purpose of enforcing bidder and contractor
11certifications.
12    The Director may also make available to the Secretary of
13State information that a limited liability company, which has
14filed articles of organization with the Secretary of State, or
15corporation which has been issued a certificate of
16incorporation by the Secretary of State has failed to file
17returns under this Act or pay the tax, penalty and interest
18shown therein, or has failed to pay any final assessment of
19tax, penalty or interest due under this Act. An assessment is
20final when all proceedings in court for review of such
21assessment have terminated or the time for the taking thereof
22has expired without such proceedings being instituted.
23    The Director shall make available for public inspection in
24the Department's principal office and for publication, at cost,
25administrative decisions issued on or after January 1, 1995.
26These decisions are to be made available in a manner so that

 

 

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1the following taxpayer information is not disclosed:
2        (1) The names, addresses, and identification numbers
3    of the taxpayer, related entities, and employees.
4        (2) At the sole discretion of the Director, trade
5    secrets or other confidential information identified as
6    such by the taxpayer, no later than 30 days after receipt
7    of an administrative decision, by such means as the
8    Department shall provide by rule.
9    The Director shall determine the appropriate extent of the
10deletions allowed in paragraph (2). In the event the taxpayer
11does not submit deletions, the Director shall make only the
12deletions specified in paragraph (1).
13    The Director shall make available for public inspection and
14publication an administrative decision within 180 days after
15the issuance of the administrative decision. The term
16"administrative decision" has the same meaning as defined in
17Section 3-101 of Article III of the Code of Civil Procedure.
18Costs collected under this Section shall be paid into the Tax
19Compliance and Administration Fund.
20    Nothing contained in this Act shall prevent the Director
21from divulging information to any person pursuant to a request
22or authorization made by the taxpayer or by an authorized
23representative of the taxpayer.
24    For the purposes of this Section, "chief executive officer"
25means the mayor of a city, the village board president of a
26village, the county executive of a county that has adopted the

 

 

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1county executive form of government, the president of the board
2of commissioners of Cook County, or the chairperson of the
3county board or board of county commissioners of any other
4county.
5(Source: P.A. 98-1058, eff. 1-1-15.)
 
6    Section 15. The Local Tax Collection Act is amended by
7changing Section 1 as follows:
 
8    (35 ILCS 720/1)  (from Ch. 120, par. 1901)
9    Sec. 1. (a) The Department of Revenue and any unit of local
10government county or municipality may agree to the Department's
11collecting, and transmitting back to the unit of local
12government such county or municipality, any tax lawfully
13imposed by that unit of local government county or
14municipality, the subject of which is similar to that of a tax
15imposed by the State and collected by the Department of
16Revenue, unless the General Assembly has specifically required
17a different method of collection for such tax. However, the
18Department may not enter into a contract with any unit of local
19government municipality or county pursuant to this Act for the
20collection of any tax based on the sale or use of tangible
21personal property generally, not including taxes based only on
22the sale or use of specifically limited kinds of tangible
23personal property, unless the municipal or county ordinance
24adopted by the unit of local government imposes a sales or use

 

 

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1tax which is substantively identical to and which contains the
2same exemptions as the taxes imposed by the unit of local
3government's municipalities' or counties' ordinances
4authorized by the Home Rule or Non-Home Rule Municipal or
5County Retailers' Occupation Tax Act, the Home Rule or Non-Home
6Rule or the Municipal or County Use Tax, or any other
7Retailers' Occupation Tax Act or Law that is administered by
8the Department of Revenue, as interpreted by the Department
9through its regulations as those Acts and as those regulations
10may from time to time be amended.
11    (b) Regarding the collection of a tax pursuant to this
12Section, the Department and any person subject to a tax
13collected by the Department pursuant to this Section shall, as
14much as practicable, have the same rights, remedies,
15privileges, immunities, powers and duties, and be subject to
16the same conditions, restrictions, limitations, penalties,
17definitions of terms and procedures, as those set forth in the
18Act imposing the State tax, the subject of which is similar to
19the tax being collected by the Department pursuant to this
20Section. The Department and unit of local government county or
21municipality shall specifically agree in writing to such
22rights, remedies, privileges, immunities, powers, duties,
23conditions, restrictions, limitations, penalties, definitions
24of terms and procedures, as well as any other terms deemed
25necessary or advisable. All terms so agreed upon shall be
26incorporated into an ordinance of such unit of local government

 

 

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1county or municipality, and the Department shall not collect
2the tax pursuant to this Section until such ordinance takes
3effect.
4    (c) (1) The Department shall forthwith pay over to the
5State Treasurer, ex officio, as trustee, all taxes and
6penalties collected hereunder. On or before the 25th day of
7each calendar month, the Department shall prepare and certify
8to the Comptroller the disbursement of stated sums of money to
9named units of local government cities and counties from which
10retailers or other taxpayers have paid taxes or penalties
11hereunder to the Department during the second preceding
12calendar month.
13    (i) The an amount to be paid to each unit of local
14government county and municipality, which shall equal the taxes
15and penalties collected by the Department for the unit of local
16government such county or municipality pursuant to this Section
17during the second preceding calendar month (not including
18credit memoranda), plus an amount the Department determines is
19necessary to offset any amounts which were erroneously paid to
20a different taxing body, and not including (i) an amount equal
21to the amount of refunds made during the second preceding
22calendar month by the Department of behalf of such county or
23municipality and (ii) any amount which the Department
24determines is necessary to offset any amounts which are payable
25to a different taxing body but were erroneously paid to the
26municipality or county, less 2% of the balance, or any greater

 

 

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1amount of the balance as provided in the agreement between the
2Department and the unit of local government required under this
3Section, which sum shall be retained by the State Treasurer.
4total amount of taxes and penalties collected by the Department
5for such county or municipality pursuant to this Section or the
6actual cost of collection of such taxes and penalties
7determined pursuant to the agreement described in subsection
8(b), whichever is less, which shall be retained by the State;
9and
10    (ii) With respect to the total amount to be retained by the
11State Treasurer pursuant to subparagraph (i), the Department,
12at the time of each monthly disbursement to the units of local
13government, shall prepare and certify to the Comptroller the
14amount so retained by the State Treasurer, which shall be
15transferred such amount to be deposited into the Tax Compliance
16and Administration General Revenue Fund of the State treasury
17and used by the Department, subject to appropriation, to cover
18the costs incurred by the Department in collecting such taxes
19and penalties.
20    (2) Within 10 7 days after receiving the certifications
21described in paragraph (1), the Comptroller shall issue orders
22for payment of the amounts specified in subparagraph (i) of
23paragraph (1).
24    (d) Any home rule unit of local government which imposes a
25tax collected by the Department pursuant to this Section
26substantially similar to a State imposed tax, or which imposes

 

 

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1a tax which is intended to be collected from a retail purchaser
2of goods or services at the same time a similar State tax is
3also collected, must file a certified copy of the ordinance
4imposing the tax with the Department within 10 days after its
5passage. Beginning on the effective date of this amendatory Act
6of the 99th General Assembly, an ordinance or resolution
7imposing or discontinuing a tax collected by the Department
8under this Section or effecting a change in the rate thereof
9shall either (i) be adopted and a certified copy thereof filed
10with the Department on or before the first day of April,
11whereupon the Department shall proceed to administer and
12enforce the tax imposition, discontinuance, or rate change as
13of the first day of July next following the adoption and
14filing; or (ii) be adopted and certified copy thereof filed
15with the Department on or before the first day of October,
16whereupon the Department shall proceed to administer and
17enforce the tax imposition, discontinuance, or rate change as
18of the first day of January next following the adoption and
19filing. No such ordinance shall become effective until it is so
20filed. Any home rule unit of local government which has enacted
21such an ordinance prior to the effective date of this Act shall
22file a copy of such ordinance with the Department within 90
23days after the effective date of this Act.
24    (e) It is declared to be the law of this State, pursuant to
25paragraph (g) of Section 6 of Article VII of the Illinois
26Constitution, that this amendatory Act of 1988 is a denial of

 

 

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1the power of a home rule unit to fail to comply with the
2requirements of paragraphs (d) and (e) of this Section.
3(Source: P.A. 85-1215.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".