Full Text of HB2577 101st General Assembly
HB2577 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2577 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| 235 ILCS 5/8-2 | from Ch. 43, par. 159 |
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Amends the Liquor Control Act of 1934. Excludes manufacturers and importing distributors that in the preceding year had less than $50,000 of tax liability under the Taxation of Liquor Article from a provision requiring manufacturers and importing distributors to file a specified bond with the Department of Revenue. Effective January 1, 2020.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | HB2577 | | LRB101 06994 RPS 52027 b |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Section 8-2 as follows:
| 6 | | (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| 7 | | Sec. 8-2. Payments; reports. It is the duty of each | 8 | | manufacturer with respect to alcoholic
liquor produced or | 9 | | imported by such manufacturer, or purchased tax-free by
such | 10 | | manufacturer from another manufacturer or importing
| 11 | | distributor, and of each importing distributor as to alcoholic | 12 | | liquor
purchased by such importing distributor from foreign | 13 | | importers or from
anyone from any point in the United States | 14 | | outside of this State or
purchased tax-free from another | 15 | | manufacturer or importing
distributor, to pay the tax imposed | 16 | | by Section 8-1 to the
Department of Revenue on or before the | 17 | | 15th day of the calendar month
following the calendar month in | 18 | | which such alcoholic liquor is sold or used
by such | 19 | | manufacturer or by such importing distributor other than in an
| 20 | | authorized tax-free manner or to pay that tax electronically as | 21 | | provided in
this Section.
| 22 | | Each manufacturer and each importing distributor shall
| 23 | | make payment under one of the following methods: (1) on or |
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| 1 | | before the
15th day of each calendar month, file in person or | 2 | | by United States
first-class
mail, postage pre-paid,
with the | 3 | | Department of Revenue, on
forms prescribed and furnished by the | 4 | | Department, a report in writing in
such form as may be required | 5 | | by the Department in order to compute, and
assure the accuracy | 6 | | of, the tax due on all taxable sales and uses of
alcoholic | 7 | | liquor occurring during the preceding month. Payment of the tax
| 8 | | in the amount disclosed by the report shall accompany the | 9 | | report or, (2) on
or
before the 15th day of each calendar | 10 | | month, electronically file with the
Department of Revenue, on | 11 | | forms prescribed and furnished by the Department, an
electronic | 12 | | report in such form as may be required by the Department in | 13 | | order to
compute,
and assure the accuracy of, the tax due on | 14 | | all taxable sales and uses of
alcoholic liquor
occurring during | 15 | | the preceding month. An electronic payment of the tax in the
| 16 | | amount
disclosed by the report shall accompany the report. A | 17 | | manufacturer or
distributor who
files an electronic report and | 18 | | electronically pays the tax imposed pursuant to
Section 8-1
to | 19 | | the Department of Revenue on or before the 15th day of the | 20 | | calendar month
following
the calendar month in which such | 21 | | alcoholic liquor is sold or used by that
manufacturer or
| 22 | | importing distributor other than in an authorized tax-free | 23 | | manner shall pay to
the
Department the amount of the tax | 24 | | imposed pursuant to Section 8-1, less a
discount
which is | 25 | | allowed to reimburse the manufacturer or importing distributor
| 26 | | for the
expenses incurred in keeping and maintaining records, |
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| 1 | | preparing and filing the
electronic
returns, remitting the tax, | 2 | | and supplying data to the Department upon
request.
| 3 | | The discount shall be in an amount as follows:
| 4 | | (1) For original returns due on or after January 1, | 5 | | 2003 through
September 30, 2003, the discount shall be | 6 | | 1.75% or $1,250 per return, whichever
is less;
| 7 | | (2) For original returns due on or after October 1, | 8 | | 2003 through September
30, 2004, the discount shall be 2% | 9 | | or $3,000 per return, whichever is less; and
| 10 | | (3) For original returns due on or after October 1, | 11 | | 2004, the discount
shall
be 2% or $2,000 per return, | 12 | | whichever is less.
| 13 | | The Department may, if it deems it necessary in order to | 14 | | insure the
payment of the tax imposed by this Article, require | 15 | | returns to be made
more frequently than and covering periods of | 16 | | less than a month. Such return
shall contain such further | 17 | | information as the Department may reasonably
require.
| 18 | | It shall be presumed that all alcoholic liquors acquired or | 19 | | made by any
importing distributor or manufacturer have been | 20 | | sold or used by him in this
State and are the basis for the tax | 21 | | imposed by this Article unless proven,
to the satisfaction of | 22 | | the Department, that such alcoholic liquors are (1)
still in | 23 | | the possession of such importing distributor or manufacturer, | 24 | | or
(2) prior to the termination of possession have been lost by | 25 | | theft or
through unintentional destruction, or (3) that such | 26 | | alcoholic liquors are
otherwise exempt from taxation under this |
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| 1 | | Act.
| 2 | | If any payment provided for in this Section exceeds the | 3 | | manufacturer's or importing distributor's liabilities under | 4 | | this Act, as shown on an original report, the manufacturer or | 5 | | importing distributor may credit such excess payment against | 6 | | liability subsequently to be remitted to the Department under | 7 | | this Act, in accordance with reasonable rules adopted by the | 8 | | Department. If the Department subsequently determines that all | 9 | | or any part of the credit taken was not actually due to the | 10 | | manufacturer or importing distributor, the manufacturer's or | 11 | | importing distributor's discount shall be reduced by an amount | 12 | | equal to the difference between the discount as applied to the | 13 | | credit taken and that actually due, and the manufacturer or | 14 | | importing distributor shall be liable for penalties and | 15 | | interest on such difference. | 16 | | The Department may require any foreign importer to file | 17 | | monthly
information returns, by the 15th day of the month | 18 | | following the month which
any such return covers, if the | 19 | | Department determines this to be necessary
to the proper | 20 | | performance of the Department's functions and duties under
this | 21 | | Act. Such return shall contain such information as the | 22 | | Department may
reasonably require.
| 23 | | Every manufacturer and importing distributor , except for a | 24 | | manufacturer or importing distributor that in the preceding | 25 | | year had less than $50,000 of tax liability under this Article, | 26 | | shall also file, with the
Department, a bond in an amount not |
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| 1 | | less than $1,000 and not to exceed
$100,000 on a form to be | 2 | | approved by, and with a surety or sureties
satisfactory to, the | 3 | | Department. Such bond shall be conditioned upon the
| 4 | | manufacturer or importing distributor paying to the Department | 5 | | all monies
becoming due from such manufacturer or importing | 6 | | distributor under this
Article. The Department shall fix the | 7 | | penalty of such bond in each case,
taking into consideration | 8 | | the amount of alcoholic liquor expected to be
sold and used by | 9 | | such manufacturer or importing distributor, and the
penalty | 10 | | fixed by the Department shall be sufficient, in the | 11 | | Department's
opinion, to protect the State of Illinois against | 12 | | failure to pay any amount
due under this Article, but the | 13 | | amount of the penalty fixed by the
Department shall not exceed | 14 | | twice the amount of tax liability of a monthly
return, nor | 15 | | shall the amount of such penalty be less than $1,000. The
| 16 | | Department shall notify the Commission of the Department's | 17 | | approval or
disapproval of any such manufacturer's or importing | 18 | | distributor's bond, or
of the termination or cancellation of | 19 | | any such bond, or of the Department's
direction to a | 20 | | manufacturer or importing distributor that he must file
| 21 | | additional bond in order to comply with this Section. The | 22 | | Commission shall
not issue a license to any applicant for a | 23 | | manufacturer's or importing
distributor's license unless the | 24 | | Commission has received a notification
from the Department | 25 | | showing that such applicant has filed a satisfactory
bond with | 26 | | the Department hereunder and that such bond has been approved |
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| 1 | | by
the Department. Failure by any licensed manufacturer or | 2 | | importing
distributor to keep a satisfactory bond in effect | 3 | | with the Department or to
furnish additional bond to the | 4 | | Department, when required hereunder by the
Department to do so, | 5 | | shall be grounds for the revocation or suspension of
such | 6 | | manufacturer's or importing distributor's license by the | 7 | | Commission.
If a manufacturer or importing distributor fails to | 8 | | pay any amount due
under this Article, his bond with the | 9 | | Department shall be deemed forfeited,
and the Department may | 10 | | institute a suit in its own name on such bond.
| 11 | | After notice and opportunity for a hearing the State | 12 | | Commission may
revoke or suspend the license of any | 13 | | manufacturer or importing distributor
who fails to comply with | 14 | | the provisions of this Section. Notice of such
hearing and the | 15 | | time and place thereof shall be in writing and shall
contain a | 16 | | statement of the charges against the licensee. Such notice may | 17 | | be
given by United States registered or certified mail with | 18 | | return receipt
requested, addressed to the person concerned at | 19 | | his last known address and
shall be given not less than 7 days | 20 | | prior to the date fixed for the
hearing. An order revoking or | 21 | | suspending a license under the provisions of
this Section may | 22 | | be reviewed in the manner provided in Section 7-10
of this Act. | 23 | | No new license shall be granted to a person
whose license has | 24 | | been revoked for a violation of this Section or, in case
of | 25 | | suspension, shall such suspension be terminated until he has | 26 | | paid to the
Department all taxes and penalties which he owes |
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| 1 | | the State under the
provisions of this Act.
| 2 | | Every manufacturer or importing distributor who has, as | 3 | | verified by
the Department, continuously complied with the | 4 | | conditions of the bond under
this Act for a period of 2 years | 5 | | shall be considered to be a prior
continuous compliance | 6 | | taxpayer. In determining the consecutive period of
time for | 7 | | qualification as a prior continuous compliance taxpayer, any
| 8 | | consecutive period of time of qualifying compliance | 9 | | immediately prior to
the effective date of this amendatory Act | 10 | | of 1987 shall be credited to any
manufacturer or importing | 11 | | distributor.
| 12 | | A manufacturer or importing distributor that is a prior | 13 | | continuous compliance taxpayer under this Section and becomes a | 14 | | successor as the result of an acquisition, merger, or | 15 | | consolidation of a manufacturer or importing distributor shall | 16 | | be deemed to be a prior continuous compliance taxpayer with | 17 | | respect to the acquired, merged, or consolidated entity.
| 18 | | Every prior continuous compliance taxpayer shall be exempt | 19 | | from the bond
requirements of this Act until the Department has | 20 | | determined the taxpayer
to be delinquent in the filing of any | 21 | | return or deficient in the payment of
any tax under this Act. | 22 | | Any taxpayer who fails to pay an admitted or
established | 23 | | liability under this Act may also be required to post bond or
| 24 | | other acceptable security with the Department guaranteeing the | 25 | | payment of
such admitted or established liability.
| 26 | | The Department shall discharge any surety and shall release |
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| 1 | | and return
any bond or security deposit assigned, pledged or | 2 | | otherwise provided to it
by a taxpayer under this Section | 3 | | within 30 days after: (1) such taxpayer
becomes a prior | 4 | | continuous compliance taxpayer; or (2) such taxpayer has
ceased | 5 | | to collect receipts on which he is required to remit tax to the
| 6 | | Department, has filed a final tax return, and has paid to the | 7 | | Department an
amount sufficient to discharge his remaining tax | 8 | | liability as determined by
the Department under this Act.
| 9 | | (Source: P.A. 100-1171, eff. 1-4-19.)
| 10 | | Section 99. Effective date. This Act takes effect January | 11 | | 1, 2020.
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