Full Text of HB6359 96th General Assembly
HB6359ham001 96TH GENERAL ASSEMBLY
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Rep. Carol A. Sente
Filed: 3/10/2010
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| AMENDMENT TO HOUSE BILL 6359
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| AMENDMENT NO. ______. Amend House Bill 6359 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Retailers' Occupation Tax Act is amended by | 5 |
| changing Section 2a as follows: | 6 |
| (35 ILCS 120/2a) (from Ch. 120, par. 441a) | 7 |
| Sec. 2a. It is unlawful for any person to engage in the | 8 |
| business of
selling tangible personal property at retail in | 9 |
| this State without a
certificate of registration from the | 10 |
| Department. Application
for a certificate of registration | 11 |
| shall be made to the Department upon
forms furnished by it. | 12 |
| Each such application shall be signed and verified
and shall | 13 |
| state: (1) the name and social security number of the
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| applicant; (2) the address of his principal place
of business; | 15 |
| (3) the address of the principal place of business from which
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| he engages in the business of selling tangible personal |
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| property at retail
in this State and the addresses of all other | 2 |
| places of business, if any
(enumerating such addresses, if any, | 3 |
| in a separate list attached to and
made a part of the | 4 |
| application), from which he engages in the business of
selling | 5 |
| tangible personal property at retail in this State; (4)
the
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| name and address of the person or persons who will be | 7 |
| responsible for
filing returns and payment of taxes due under | 8 |
| this Act; (5) in the
case of
a corporation, the name, title, | 9 |
| and social security number of
each corporate officer; (6) in | 10 |
| the case of a limited liability
company, the
name, social | 11 |
| security number, and FEIN number of
each
manager and member; | 12 |
| and (7) such other information
as the Department may reasonably | 13 |
| require. The application shall contain
an acceptance of | 14 |
| responsibility signed by the person or persons who will be
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| responsible for filing returns and payment of the taxes due | 16 |
| under this
Act. If the applicant will sell tangible personal | 17 |
| property at retail
through vending machines, his application to | 18 |
| register shall indicate the
number of vending machines to be so | 19 |
| operated; and thereafter, he shall
notify the Department by | 20 |
| January 31 of the number of vending machines which
such person | 21 |
| was using in his business of selling tangible personal property
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| at retail on the preceding December 31. | 23 |
| The Department may deny a certificate of registration to | 24 |
| any applicant
if the owner, any partner, any manager or member | 25 |
| of a limited liability
company, or a corporate officer of the | 26 |
| applicant, is or
has been the owner, a partner, a manager or |
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| member of a limited
liability company, or a corporate officer, | 2 |
| of another retailer
that is in default for moneys due under | 3 |
| this Act. | 4 |
| The Department may require an Every applicant for a | 5 |
| certificate of registration hereunder to shall , at
the time of | 6 |
| filing such application, furnish a bond from a surety company
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| authorized to do business in the State of Illinois, or an | 8 |
| irrevocable
bank letter of credit or a bond signed by 2
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| personal sureties who have filed, with the Department, sworn | 10 |
| statements
disclosing net assets equal to at least 3 times the | 11 |
| amount of the bond to
be required of such applicant, or a bond | 12 |
| secured by an assignment of a bank
account or certificate of | 13 |
| deposit, stocks or bonds, conditioned upon the
applicant paying | 14 |
| to the State of Illinois all moneys becoming due under
this Act | 15 |
| and under any other State tax law or municipal or county tax
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| ordinance or resolution under which the certificate of | 17 |
| registration that is
issued to the applicant under this Act | 18 |
| will permit the applicant to engage
in business without | 19 |
| registering separately under such other law, ordinance
or | 20 |
| resolution. In making a determination as to whether to require | 21 |
| a bond or other security, the Department shall take into | 22 |
| consideration whether the owner, any partner, any manager or | 23 |
| member of a limited liability company, or a corporate officer | 24 |
| of the applicant is or has been the owner, a partner, a manager | 25 |
| or member of a limited liability company, or a corporate | 26 |
| officer of another retailer that is in default for moneys due |
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| under this Act or any other tax or fee Act administered by the | 2 |
| Department; and whether the owner, any partner, any manager or | 3 |
| member of a limited liability company, or a corporate officer | 4 |
| of the applicant is or has been the owner, a partner, a manager | 5 |
| or member of a limited liability company, or a corporate | 6 |
| officer of another retailer whose certificate of registration | 7 |
| has been revoked within the previous 5 years under this Act or | 8 |
| any other tax or fee Act administered by the Department. If a | 9 |
| bond or other security is required, the Department shall fix | 10 |
| the amount of the bond or other security, taking into | 11 |
| consideration the amount of money expected to become due from | 12 |
| the applicant under this Act and under any other State tax law | 13 |
| or municipal or county tax ordinance or resolution under which | 14 |
| the certificate of registration that is issued to the applicant | 15 |
| under this Act will permit the applicant to engage in business | 16 |
| without registering separately under such other law, | 17 |
| ordinance, or resolution. The Department shall fix the amount | 18 |
| of such security in each
case, taking into consideration the | 19 |
| amount of money expected to become due
from the applicant under | 20 |
| this Act and under any other State tax law or
municipal or | 21 |
| county tax ordinance or resolution under which the certificate
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| of registration that is issued to the applicant under this Act | 23 |
| will permit
the applicant to engage in business without | 24 |
| registering separately under
such other law, ordinance or | 25 |
| resolution. The amount of security required by
the Department | 26 |
| shall be such as, in its opinion, will protect the State of
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| Illinois against failure to pay the amount which may become due | 2 |
| from the
applicant under this Act and under any other State tax | 3 |
| law or municipal or
county tax ordinance or resolution under | 4 |
| which the certificate of
registration that is issued to the | 5 |
| applicant under this Act will permit the
applicant to engage in | 6 |
| business without registering separately under such
other law, | 7 |
| ordinance or resolution, but the amount of the security | 8 |
| required
by the Department shall not exceed three times the | 9 |
| amount of the
applicant's average monthly tax liability, or | 10 |
| $50,000.00, whichever amount
is lower. | 11 |
| No certificate of registration under this Act shall be | 12 |
| issued by the
Department until the applicant provides the | 13 |
| Department with satisfactory
security , if required, as herein | 14 |
| provided for. | 15 |
| Upon receipt of the application for certificate of | 16 |
| registration in
proper form, and upon approval by the | 17 |
| Department of the security furnished
by the applicant , if | 18 |
| required , the Department shall issue to such applicant a
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| certificate of registration which shall permit the person to | 20 |
| whom it is
issued to engage in the business of selling tangible | 21 |
| personal property at
retail in this State. The certificate of | 22 |
| registration shall be
conspicuously displayed at the place of | 23 |
| business which the person so
registered states in his | 24 |
| application to be the principal place of business
from which he | 25 |
| engages in the business of selling tangible personal property
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| at retail in this State. |
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| No certificate of registration issued to a taxpayer who | 2 |
| files returns
required by this Act on a monthly basis shall be | 3 |
| valid after the expiration
of 5 years from the date of its | 4 |
| issuance or last renewal. The expiration
date of a | 5 |
| sub-certificate of registration shall be that of the | 6 |
| certificate
of registration to which the sub-certificate | 7 |
| relates. A certificate of
registration shall automatically be | 8 |
| renewed, subject to revocation as
provided by this Act, for an | 9 |
| additional 5 years from the date of its
expiration unless | 10 |
| otherwise notified by the Department as provided by this
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| paragraph. Where a taxpayer to whom a certificate of | 12 |
| registration is
issued under this Act is in default to the | 13 |
| State of Illinois for delinquent
returns or for moneys due
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| under this Act or any other State tax law or municipal or | 15 |
| county ordinance
administered or enforced by the Department, | 16 |
| the Department shall, not less
than 120 days before the | 17 |
| expiration date of such certificate of
registration, give | 18 |
| notice to the taxpayer to whom the certificate was
issued of | 19 |
| the account period of the delinquent returns, the amount of
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| tax,
penalty and interest due and owing from the
taxpayer, and | 21 |
| that the certificate of registration shall not be
automatically | 22 |
| renewed upon its expiration date unless the taxpayer, on or
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| before the date of expiration, has filed and paid the | 24 |
| delinquent returns or
paid the defaulted amount in full. A
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| taxpayer to whom such a notice is issued shall be deemed an | 26 |
| applicant for
renewal. The Department shall promulgate |
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| regulations establishing
procedures for taxpayers who file | 2 |
| returns on a monthly basis but desire and
qualify to change to | 3 |
| a quarterly or yearly filing basis and will no longer
be | 4 |
| subject to renewal under this Section, and for taxpayers who | 5 |
| file
returns on a yearly or quarterly basis but who desire or | 6 |
| are required to
change to a monthly filing basis and will be | 7 |
| subject to renewal under
this Section. | 8 |
| The Department may in its discretion approve renewal by an | 9 |
| applicant
who is in default if, at the time of application for | 10 |
| renewal, the applicant
files all of the delinquent returns or | 11 |
| pays to the Department such
percentage of the defaulted amount | 12 |
| as may be
determined by the Department and agrees in writing to | 13 |
| waive all limitations
upon the Department for collection of the | 14 |
| remaining defaulted amount to the
Department over a period not | 15 |
| to exceed 5 years from the date of renewal of
the certificate; | 16 |
| however, no renewal application submitted by an applicant
who | 17 |
| is in default shall be approved if the immediately preceding | 18 |
| renewal by
the applicant was conditioned upon the installment | 19 |
| payment
agreement described in this Section. The payment | 20 |
| agreement herein provided
for shall be in addition to and not | 21 |
| in lieu of the security that may be required by
this Section of | 22 |
| a taxpayer who is no longer considered a prior continuous
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| compliance taxpayer. The execution of the payment agreement as | 24 |
| provided in
this Act shall not toll the accrual of interest at | 25 |
| the statutory rate. | 26 |
| The Department may suspend a certificate of registration if |
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| the Department finds that the person to whom the certificate of | 2 |
| registration has been issued knowingly sold contraband | 3 |
| cigarettes. | 4 |
| A certificate of registration issued under this Act more | 5 |
| than 5 years
before the effective date of this amendatory Act | 6 |
| of 1989 shall expire and
be subject to the renewal provisions | 7 |
| of this Section on the next
anniversary of the date of issuance | 8 |
| of such certificate which occurs more
than 6 months after the | 9 |
| effective date of this amendatory Act of 1989. A
certificate of | 10 |
| registration issued less than 5 years before the effective
date | 11 |
| of this amendatory Act of 1989 shall expire and be subject to | 12 |
| the
renewal provisions of this Section on the 5th anniversary | 13 |
| of the issuance
of the certificate. | 14 |
| If the person so registered states that he operates other | 15 |
| places of
business from which he engages in the business of | 16 |
| selling tangible personal
property at retail in this State, the | 17 |
| Department shall furnish him with a
sub-certificate of | 18 |
| registration for each such place of business, and the
applicant | 19 |
| shall display the appropriate sub-certificate of registration | 20 |
| at
each such place of business. All sub-certificates of | 21 |
| registration shall
bear the same registration number as that | 22 |
| appearing upon the certificate of
registration to which such | 23 |
| sub-certificates relate. | 24 |
| If the applicant will sell tangible personal property at | 25 |
| retail through
vending machines, the Department shall furnish | 26 |
| him with a sub-certificate
of registration for each such |
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| vending machine, and the applicant shall
display the | 2 |
| appropriate sub-certificate of registration on each such
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| vending machine by attaching the sub-certificate of | 4 |
| registration to a
conspicuous part of such vending machine. | 5 |
| Where the same person engages in 2 or more businesses of | 6 |
| selling
tangible personal property at retail in this State, | 7 |
| which businesses are
substantially different in character or | 8 |
| engaged in under different trade
names or engaged in under | 9 |
| other substantially dissimilar circumstances (so
that it is | 10 |
| more practicable, from an accounting, auditing or bookkeeping
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| standpoint, for such businesses to be separately registered), | 12 |
| the
Department may require or permit such person (subject to | 13 |
| the same
requirements concerning the furnishing of security as | 14 |
| those that are
provided for hereinbefore in this Section as to | 15 |
| each application for a
certificate of registration) to apply | 16 |
| for and obtain a separate certificate
of registration for each | 17 |
| such business or for any of such businesses, under
a single | 18 |
| certificate of registration supplemented by related
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| sub-certificates of registration. | 20 |
| Any person who is registered under the "Retailers' | 21 |
| Occupation Tax Act"
as of March 8, 1963, and who, during the | 22 |
| 3-year period immediately prior to
March 8, 1963, or during a | 23 |
| continuous 3-year period part of which passed
immediately | 24 |
| before and the remainder of which passes immediately after
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| March 8, 1963, has been so registered continuously and who is | 26 |
| determined by
the Department not to have been either delinquent |
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| or deficient in the
payment of tax liability during that period | 2 |
| under this Act or under any
other State tax law or municipal or | 3 |
| county tax ordinance or resolution
under which the certificate | 4 |
| of registration that is issued to the
registrant under this Act | 5 |
| will permit the registrant to engage in business
without | 6 |
| registering separately under such other law, ordinance or
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| resolution, shall be considered to be a Prior Continuous | 8 |
| Compliance
taxpayer. Also any taxpayer who has, as verified by | 9 |
| the Department,
faithfully and continuously complied with the | 10 |
| condition of his bond or
other security under the provisions of | 11 |
| this Act for a period of 3
consecutive years shall be | 12 |
| considered to be a Prior Continuous Compliance
taxpayer. | 13 |
| Every Prior Continuous Compliance taxpayer shall be exempt | 14 |
| from all
requirements under this Act concerning the furnishing | 15 |
| of a bond or other security as a
condition precedent to his | 16 |
| being authorized to engage in the business of
selling tangible | 17 |
| personal property at retail in this State. This exemption
shall | 18 |
| continue for each such taxpayer until such time as he may be
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| determined by the Department to be delinquent in the filing of | 20 |
| any returns,
or is determined by the Department (either through | 21 |
| the Department's
issuance of a final assessment which has | 22 |
| become final under the Act, or by
the taxpayer's filing of a | 23 |
| return which admits tax that is not paid to be
due) to be | 24 |
| delinquent or deficient in the paying of any tax under this Act
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| or under any other State tax law or municipal or county tax | 26 |
| ordinance or
resolution under which the certificate of |
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| registration that is issued to
the registrant under this Act | 2 |
| will permit the registrant to engage in
business without | 3 |
| registering separately under such other law, ordinance or
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| resolution, at which time that taxpayer shall become subject to | 5 |
| all the
financial responsibility requirements of this Act and, | 6 |
| as a condition of
being allowed to continue to engage in the | 7 |
| business of selling tangible
personal property at retail, may | 8 |
| shall be required to post bond or other
acceptable security | 9 |
| with the Department covering liability which such
taxpayer may | 10 |
| thereafter incur. Any taxpayer who fails to pay an admitted or
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| established liability under this Act may also be required to | 12 |
| post bond or
other acceptable security with this Department | 13 |
| guaranteeing the payment of
such admitted or established | 14 |
| liability. | 15 |
| No certificate of registration shall be issued to any | 16 |
| person who is in
default to the State of Illinois for moneys | 17 |
| due under this Act or under any
other State tax law or | 18 |
| municipal or county tax ordinance or resolution
under which the | 19 |
| certificate of registration that is issued to the applicant
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| under this Act will permit the applicant to engage in business | 21 |
| without
registering separately under such other law, ordinance | 22 |
| or resolution. | 23 |
| Any person aggrieved by any decision of the Department | 24 |
| under this
Section may, within 20 days after notice of such | 25 |
| decision, protest and
request a hearing, whereupon the | 26 |
| Department shall give notice to such
person of the time and |
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| place fixed for such hearing and shall hold a
hearing in | 2 |
| conformity with the provisions of this Act and then issue its
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| final administrative decision in the matter to such person. In | 4 |
| the absence
of such a protest within 20 days, the Department's | 5 |
| decision shall become
final without any further determination | 6 |
| being made or notice given. | 7 |
| With respect to security other than bonds (upon which the | 8 |
| Department may
sue in the event of a forfeiture), if the | 9 |
| taxpayer fails to pay, when due,
any amount whose payment such | 10 |
| security guarantees, the Department shall,
after such | 11 |
| liability is admitted by the taxpayer or established by the
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| Department through the issuance of a final assessment that has | 13 |
| become final
under the law, convert the security which that | 14 |
| taxpayer has furnished into
money for the State, after first | 15 |
| giving the taxpayer at least 10 days'
written notice, by | 16 |
| registered or certified mail, to pay the liability or
forfeit | 17 |
| such security to the Department. If the security consists of | 18 |
| stocks
or bonds or other securities which are listed on a | 19 |
| public exchange, the
Department shall sell such securities | 20 |
| through such public exchange. If
the security consists of an | 21 |
| irrevocable bank letter of credit, the
Department shall convert | 22 |
| the security in the manner provided for in the
Uniform | 23 |
| Commercial Code. If the security consists of a bank certificate | 24 |
| of
deposit, the Department shall convert the security into | 25 |
| money by demanding
and collecting the amount of such bank | 26 |
| certificate of deposit from the bank
which issued such |
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| certificate. If the security consists of a type of stocks
or | 2 |
| other securities which are not listed on a public exchange, the
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| Department shall sell such security to the highest and best | 4 |
| bidder after
giving at least 10 days' notice of the date, time | 5 |
| and place of the intended
sale by publication in the "State | 6 |
| Official Newspaper". If the Department
realizes more than the | 7 |
| amount of such liability from the security, plus the
expenses | 8 |
| incurred by the Department in converting the security into | 9 |
| money,
the Department shall pay such excess to the taxpayer who | 10 |
| furnished such
security, and the balance shall be paid into the | 11 |
| State Treasury. | 12 |
| The Department shall discharge any surety and shall release | 13 |
| and return
any security deposited, assigned, pledged or | 14 |
| otherwise provided to it by
a taxpayer under this Section | 15 |
| within 30 days after: | 16 |
| (1) such taxpayer becomes a Prior Continuous | 17 |
| Compliance taxpayer; or | 18 |
| (2) such taxpayer has ceased to collect receipts on | 19 |
| which he is required
to remit tax to the Department, has | 20 |
| filed a final tax return, and has paid
to the Department an | 21 |
| amount sufficient to discharge his remaining tax
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| liability, as determined by the Department, under this Act | 23 |
| and under every
other State tax law or municipal or county | 24 |
| tax ordinance or resolution
under which the certificate of | 25 |
| registration issued under this Act permits
the registrant | 26 |
| to engage in business without registering separately under
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| such other law, ordinance or resolution. The Department | 2 |
| shall make a final
determination of the taxpayer's | 3 |
| outstanding tax liability as expeditiously
as possible | 4 |
| after his final tax return has been filed; if the | 5 |
| Department
cannot make such final determination within 45 | 6 |
| days after receiving the
final tax return, within such | 7 |
| period it shall so notify the taxpayer,
stating its reasons | 8 |
| therefor. | 9 |
| (Source: P.A. 95-1053, eff. 1-1-10 .) | 10 |
| Section 10. The Transient Merchant Act of 1987 is amended | 11 |
| by changing Section 3 as follows: | 12 |
| (225 ILCS 465/3) (from Ch. 121 1/2, par. 1653) | 13 |
| Sec. 3. It is a violation of this Act for any person, | 14 |
| either as principal
or agent, to conduct business as a | 15 |
| transient merchant or itinerant vendor
in this State without | 16 |
| first complying with the requirements of Section 2a
of the | 17 |
| Retailers' Occupation Tax Act by obtaining a certificate of | 18 |
| registration
and , if a bond or other security is required, by | 19 |
| posting bond or other approved security, and without having | 20 |
| obtained
a license under this Act. | 21 |
| (Source: P.A. 85-600.)
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.".
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