Illinois General Assembly - Full Text of SB2573
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Full Text of SB2573  102nd General Assembly

SB2573 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2573

 

Introduced 2/26/2021, by Sen. Melinda Bush

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-805 new
35 ILCS 120/2a  from Ch. 120, par. 441a

    Amends the Retailers' Occupation Tax Act. Provides that, if a person who is licensed as a retailer of alcoholic liquor under the Liquor Control Act has had the renewal of his or her certificate of registration denied or revoked by the Department of Revenue, then distributors licensed under the Liquor Control Act are prohibited from selling alcoholic liquor to that retailer, and that retailer is prohibited from purchasing alcoholic liquor from distributors, pending notification by the Department of Revenue that the denied renewal or revocation has been resolved to the Department of Revenue's satisfaction. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Requires applicants for a certificate of registration to pay a nonrefundable application fee of $30.


LRB102 16049 HLH 21421 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2573LRB102 16049 HLH 21421 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 Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-805 as follows:
 
7    (20 ILCS 2505/2505-805 new)
8    Sec. 2505-805. Certificate of registration application
9fee. For applications for a certificate of registration for
10Retailers' Occupation Tax, Service Occupation Tax, Use Tax, or
11Service Use Tax filed on or after July 1, 2022 under Section 2a
12of the Retailers' Occupation Tax Act, each applicant shall pay
13a nonrefundable application fee of $30. The fee shall be in
14addition to any other registration fee or any license fee
15authorized to be charged by statute. Each applicant shall pay
16the fee to the Department at the time of submitting the
17application, or at such other time as required by the
18Department. The collection of the fee shall be implemented by
19the Department in a manner that allows the Department to
20continue to efficiently receive and process registration
21applications. The fee shall be deposited into the Tax
22Compliance and Administration Fund.
 

 

 

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1    Section 10. The Retailers' Occupation Tax Act is amended
2by changing Section 2a as follows:
 
3    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
4    Sec. 2a. It is unlawful for any person to engage in the
5business of selling tangible personal property at retail in
6this State without a certificate of registration from the
7Department. Application for a certificate of registration
8shall be made to the Department upon forms furnished by it.
9Each such application shall be signed and verified and shall
10state: (1) the name and social security number of the
11applicant; (2) the address of his principal place of business;
12(3) the address of the principal place of business from which
13he engages in the business of selling tangible personal
14property at retail in this State and the addresses of all other
15places of business, if any (enumerating such addresses, if
16any, in a separate list attached to and made a part of the
17application), from which he engages in the business of selling
18tangible personal property at retail in this State; (4) the
19name and address of the person or persons who will be
20responsible for filing returns and payment of taxes due under
21this Act; (5) in the case of a publicly traded corporation, the
22name and title of the Chief Financial Officer, Chief Operating
23Officer, and any other officer or employee with responsibility
24for preparing tax returns under this Act, and, in the case of
25all other corporations, the name, title, and social security

 

 

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1number of each corporate officer; (6) in the case of a limited
2liability company, the name, social security number, and FEIN
3number of each manager and member; and (7) such other
4information as the Department may reasonably require. The
5application shall contain an acceptance of responsibility
6signed by the person or persons who will be responsible for
7filing returns and payment of the taxes due under this Act. If
8the applicant will sell tangible personal property at retail
9through vending machines, his application to register shall
10indicate the number of vending machines to be so operated. If
11requested by the Department at any time, that person shall
12verify the total number of vending machines he or she uses in
13his or her business of selling tangible personal property at
14retail.
15    The Department shall provide by rule for an expedited
16business registration process for remote retailers required to
17register and file under subsection (b) of Section 2 who use a
18certified service provider to file their returns under this
19Act. Such expedited registration process shall allow the
20Department to register a taxpayer based upon the same
21registration information required by the Streamlined Sales Tax
22Governing Board for states participating in the Streamlined
23Sales Tax Project.
24    The Department may deny a certificate of registration to
25any applicant if a person who is named as the owner, a partner,
26a manager or member of a limited liability company, or a

 

 

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1corporate officer of the applicant on the application for the
2certificate of registration is or has been named as the owner,
3a partner, a manager or member of a limited liability company,
4or a corporate officer on the application for the certificate
5of registration of another retailer that is in default for
6moneys due under this Act or any other tax or fee Act
7administered by the Department. For purposes of this paragraph
8only, in determining whether a person is in default for moneys
9due, the Department shall include only amounts established as
10a final liability within the 20 years prior to the date of the
11Department's notice of denial of a certificate of
12registration.
13    The Department may require an applicant for a certificate
14of registration hereunder to, at the time of filing such
15application, furnish a bond from a surety company authorized
16to do business in the State of Illinois, or an irrevocable bank
17letter of credit or a bond signed by 2 personal sureties who
18have filed, with the Department, sworn statements disclosing
19net assets equal to at least 3 times the amount of the bond to
20be required of such applicant, or a bond secured by an
21assignment of a bank account or certificate of deposit, stocks
22or bonds, conditioned upon the applicant paying to the State
23of Illinois all moneys becoming due under this Act and under
24any other State tax law or municipal or county tax ordinance or
25resolution under which the certificate of registration that is
26issued to the applicant under this Act will permit the

 

 

SB2573- 5 -LRB102 16049 HLH 21421 b

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

 

 

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1by the Department shall be such as, in its opinion, will
2protect the State of Illinois against failure to pay the
3amount which may become due from the applicant under this Act
4and under any other State tax law or municipal or county tax
5ordinance or resolution under which the certificate of
6registration that is issued to the applicant under this Act
7will permit the applicant to engage in business without
8registering separately under such other law, ordinance or
9resolution, but the amount of the security required by the
10Department shall not exceed three times the amount of the
11applicant's average monthly tax liability, or $50,000.00,
12whichever amount is lower.
13    No certificate of registration under this Act shall be
14issued by the Department until the applicant provides the
15Department with satisfactory security, if required, as herein
16provided for.
17    Upon receipt of the application for certificate of
18registration in proper form, and upon approval by the
19Department of the security furnished by the applicant, if
20required, the Department shall issue to such applicant a
21certificate of registration which shall permit the person to
22whom it is issued to engage in the business of selling tangible
23personal property at retail in this State. The certificate of
24registration shall be conspicuously displayed at the place of
25business which the person so registered states in his
26application to be the principal place of business from which

 

 

SB2573- 7 -LRB102 16049 HLH 21421 b

1he engages in the business of selling tangible personal
2property at retail in this State.
3    No certificate of registration issued prior to July 1,
42017 to a taxpayer who files returns required by this Act on a
5monthly basis or renewed prior to July 1, 2017 by a taxpayer
6who files returns required by this Act on a monthly basis shall
7be valid after the expiration of 5 years from the date of its
8issuance or last renewal. No certificate of registration
9issued on or after July 1, 2017 to a taxpayer who files returns
10required by this Act on a monthly basis or renewed on or after
11July 1, 2017 by a taxpayer who files returns required by this
12Act on a monthly basis shall be valid after the expiration of
13one year from the date of its issuance or last renewal. The
14expiration date of a sub-certificate of registration shall be
15that of the certificate of registration to which the
16sub-certificate relates. Prior to July 1, 2017, a certificate
17of registration shall automatically be renewed, subject to
18revocation as provided by this Act, for an additional 5 years
19from the date of its expiration unless otherwise notified by
20the Department as provided by this paragraph. On and after
21July 1, 2017, a certificate of registration shall
22automatically be renewed, subject to revocation as provided by
23this Act, for an additional one year from the date of its
24expiration unless otherwise notified by the Department as
25provided by this paragraph.
26    Where a taxpayer to whom a certificate of registration is

 

 

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1issued under this Act is in default to the State of Illinois
2for delinquent returns or for moneys due under this Act or any
3other State tax law or municipal or county ordinance
4administered or enforced by the Department, the Department
5shall, not less than 60 days before the expiration date of such
6certificate of registration, give notice to the taxpayer to
7whom the certificate was issued of the account period of the
8delinquent returns, the amount of tax, penalty and interest
9due and owing from the taxpayer, and that the certificate of
10registration shall not be automatically renewed upon its
11expiration date unless the taxpayer, on or before the date of
12expiration, has filed and paid the delinquent returns or paid
13the defaulted amount in full. A taxpayer to whom such a notice
14is issued shall be deemed an applicant for renewal. The
15Department shall promulgate regulations establishing
16procedures for taxpayers who file returns on a monthly basis
17but desire and qualify to change to a quarterly or yearly
18filing basis and will no longer be subject to renewal under
19this Section, and for taxpayers who file returns on a yearly or
20quarterly basis but who desire or are required to change to a
21monthly filing basis and will be subject to renewal under this
22Section.
23    The Department may in its discretion approve renewal by an
24applicant who is in default if, at the time of application for
25renewal, the applicant files all of the delinquent returns or
26pays to the Department such percentage of the defaulted amount

 

 

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1as may be determined by the Department and agrees in writing to
2waive all limitations upon the Department for collection of
3the remaining defaulted amount to the Department over a period
4not to exceed 5 years from the date of renewal of the
5certificate; however, no renewal application submitted by an
6applicant who is in default shall be approved if the
7immediately preceding renewal by the applicant was conditioned
8upon the installment payment agreement described in this
9Section. The payment agreement herein provided for shall be in
10addition to and not in lieu of the security that may be
11required by this Section of a taxpayer who is no longer
12considered a prior continuous compliance taxpayer. The
13execution of the payment agreement as provided in this Act
14shall not toll the accrual of interest at the statutory rate.
15    The Department may suspend a certificate of registration
16if the Department finds that the person to whom the
17certificate of registration has been issued knowingly sold
18contraband cigarettes.
19    A certificate of registration issued under this Act more
20than 5 years before January 1, 1990 (the effective date of
21Public Act 86-383) shall expire and be subject to the renewal
22provisions of this Section on the next anniversary of the date
23of issuance of such certificate which occurs more than 6
24months after January 1, 1990 (the effective date of Public Act
2586-383). A certificate of registration issued less than 5
26years before January 1, 1990 (the effective date of Public Act

 

 

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186-383) shall expire and be subject to the renewal provisions
2of this Section on the 5th anniversary of the issuance of the
3certificate.
4    If a person who is licensed as a retailer of alcoholic
5liquor under the Liquor Control Act has had the renewal of his
6or her certificate of registration denied under this Section
7or has had his or her certificate of registration revoked
8under Section 2b, then distributors licensed under the Liquor
9Control Act are prohibited from selling alcoholic liquor to
10that retailer and that retailer is prohibited from purchasing
11alcoholic liquor from distributors, pending notification by
12the Department of Revenue that the denied renewal or
13revocation has been resolved to the Department's satisfaction.
14    If the person so registered states that he operates other
15places of business from which he engages in the business of
16selling tangible personal property at retail in this State,
17the Department shall furnish him with a sub-certificate of
18registration for each such place of business, and the
19applicant shall display the appropriate sub-certificate of
20registration at each such place of business. All
21sub-certificates of registration shall bear the same
22registration number as that appearing upon the certificate of
23registration to which such sub-certificates relate.
24    If the applicant will sell tangible personal property at
25retail through vending machines, the Department shall furnish
26him with a sub-certificate of registration for each such

 

 

SB2573- 11 -LRB102 16049 HLH 21421 b

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

 

 

SB2573- 12 -LRB102 16049 HLH 21421 b

1each application for a certificate of registration) to apply
2for and obtain a separate certificate of registration for each
3such business or for any of such businesses, under a single
4certificate of registration supplemented by related
5sub-certificates of registration.
6    Any person who is registered under the Retailers'
7Occupation Tax Act as of March 8, 1963, and who, during the
83-year period immediately prior to March 8, 1963, or during a
9continuous 3-year period part of which passed immediately
10before and the remainder of which passes immediately after
11March 8, 1963, has been so registered continuously and who is
12determined by the Department not to have been either
13delinquent or deficient in the payment of tax liability during
14that period under this Act or under any other State tax law or
15municipal or county tax ordinance or resolution under which
16the certificate of registration that is issued to the
17registrant under this Act will permit the registrant to engage
18in business without registering separately under such other
19law, ordinance or resolution, shall be considered to be a
20Prior Continuous Compliance taxpayer. Also any taxpayer who
21has, as verified by the Department, faithfully and
22continuously complied with the condition of his bond or other
23security under the provisions of this Act for a period of 3
24consecutive years shall be considered to be a Prior Continuous
25Compliance taxpayer.
26    Every Prior Continuous Compliance taxpayer shall be exempt

 

 

SB2573- 13 -LRB102 16049 HLH 21421 b

1from all requirements under this Act concerning the furnishing
2of a bond or other security as a condition precedent to his
3being authorized to engage in the business of selling tangible
4personal property at retail in this State. This exemption
5shall continue for each such taxpayer until such time as he may
6be determined by the Department to be delinquent in the filing
7of any returns, or is determined by the Department (either
8through the Department's issuance of a final assessment which
9has become final under the Act, or by the taxpayer's filing of
10a return which admits tax that is not paid to be due) to be
11delinquent or deficient in the paying of any tax under this Act
12or under any other State tax law or municipal or county tax
13ordinance or resolution under which the certificate of
14registration that is issued to the registrant under this Act
15will permit the registrant to engage in business without
16registering separately under such other law, ordinance or
17resolution, at which time that taxpayer shall become subject
18to all the financial responsibility requirements of this Act
19and, as a condition of being allowed to continue to engage in
20the business of selling tangible personal property at retail,
21may be required to post bond or other acceptable security with
22the Department covering liability which such taxpayer may
23thereafter incur. Any taxpayer who fails to pay an admitted or
24established liability under this Act may also be required to
25post bond or other acceptable security with this Department
26guaranteeing the payment of such admitted or established

 

 

SB2573- 14 -LRB102 16049 HLH 21421 b

1liability.
2    No certificate of registration shall be issued to any
3person who is in default to the State of Illinois for moneys
4due under this Act or under any other State tax law or
5municipal or county tax ordinance or resolution under which
6the certificate of registration that is issued to the
7applicant under this Act will permit the applicant to engage
8in business without registering separately under such other
9law, ordinance or resolution.
10    Any person aggrieved by any decision of the Department
11under this Section may, within 20 days after notice of such
12decision, protest and request a hearing, whereupon the
13Department shall give notice to such person of the time and
14place fixed for such hearing and shall hold a hearing in
15conformity with the provisions of this Act and then issue its
16final administrative decision in the matter to such person. In
17the absence of such a protest within 20 days, the Department's
18decision shall become final without any further determination
19being made or notice given.
20    With respect to security other than bonds (upon which the
21Department may sue in the event of a forfeiture), if the
22taxpayer fails to pay, when due, any amount whose payment such
23security guarantees, the Department shall, after such
24liability is admitted by the taxpayer or established by the
25Department through the issuance of a final assessment that has
26become final under the law, convert the security which that

 

 

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1taxpayer has furnished into money for the State, after first
2giving the taxpayer at least 10 days' written notice, by
3registered or certified mail, to pay the liability or forfeit
4such security to the Department. If the security consists of
5stocks or bonds or other securities which are listed on a
6public exchange, the Department shall sell such securities
7through such public exchange. If the security consists of an
8irrevocable bank letter of credit, the Department shall
9convert the security in the manner provided for in the Uniform
10Commercial Code. If the security consists of a bank
11certificate of deposit, the Department shall convert the
12security into money by demanding and collecting the amount of
13such bank certificate of deposit from the bank which issued
14such certificate. If the security consists of a type of stocks
15or other securities which are not listed on a public exchange,
16the Department shall sell such security to the highest and
17best bidder after giving at least 10 days' notice of the date,
18time and place of the intended sale by publication in the
19"State Official Newspaper". If the Department realizes more
20than the amount of such liability from the security, plus the
21expenses incurred by the Department in converting the security
22into money, the Department shall pay such excess to the
23taxpayer who furnished such security, and the balance shall be
24paid into the State Treasury.
25    The Department shall discharge any surety and shall
26release and return any security deposited, assigned, pledged

 

 

SB2573- 16 -LRB102 16049 HLH 21421 b

1or otherwise provided to it by a taxpayer under this Section
2within 30 days after:
3        (1) such taxpayer becomes a Prior Continuous
4    Compliance taxpayer; or
5        (2) such taxpayer has ceased to collect receipts on
6    which he is required to remit tax to the Department, has
7    filed a final tax return, and has paid to the Department an
8    amount sufficient to discharge his remaining tax
9    liability, as determined by the Department, under this Act
10    and under every other State tax law or municipal or county
11    tax ordinance or resolution under which the certificate of
12    registration issued under this Act permits the registrant
13    to engage in business without registering separately under
14    such other law, ordinance or resolution. The Department
15    shall make a final determination of the taxpayer's
16    outstanding tax liability as expeditiously as possible
17    after his final tax return has been filed; if the
18    Department cannot make such final determination within 45
19    days after receiving the final tax return, within such
20    period it shall so notify the taxpayer, stating its
21    reasons therefor.
22(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
23100-863, eff. 8-14-18; 101-31, eff. 6-28-19.)