Illinois General Assembly - Full Text of HB2577
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Full Text of HB2577  101st General Assembly




HB2577 EngrossedLRB101 06994 RPS 52027 b

1    AN ACT concerning liquor.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing 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
8manufacturer with respect to alcoholic liquor produced or
9imported by such manufacturer, or purchased tax-free by such
10manufacturer from another manufacturer or importing
11distributor, and of each importing distributor as to alcoholic
12liquor purchased by such importing distributor from foreign
13importers or from anyone from any point in the United States
14outside of this State or purchased tax-free from another
15manufacturer or importing distributor, to pay the tax imposed
16by Section 8-1 to the Department of Revenue on or before the
1715th day of the calendar month following the calendar month in
18which such alcoholic liquor is sold or used by such
19manufacturer or by such importing distributor other than in an
20authorized tax-free manner or to pay that tax electronically as
21provided in this Section.
22    Each manufacturer and each importing distributor shall
23make payment under one of the following methods: (1) on or



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1before the 15th day of each calendar month, file in person or
2by United States first-class mail, postage pre-paid, with the
3Department of Revenue, on forms prescribed and furnished by the
4Department, a report in writing in such form as may be required
5by the Department in order to compute, and assure the accuracy
6of, the tax due on all taxable sales and uses of alcoholic
7liquor occurring during the preceding month. Payment of the tax
8in the amount disclosed by the report shall accompany the
9report or, (2) on or before the 15th day of each calendar
10month, electronically file with the Department of Revenue, on
11forms prescribed and furnished by the Department, an electronic
12report in such form as may be required by the Department in
13order to compute, and assure the accuracy of, the tax due on
14all taxable sales and uses of alcoholic liquor occurring during
15the preceding month. An electronic payment of the tax in the
16amount disclosed by the report shall accompany the report. A
17manufacturer or distributor who files an electronic report and
18electronically pays the tax imposed pursuant to Section 8-1 to
19the Department of Revenue on or before the 15th day of the
20calendar month following the calendar month in which such
21alcoholic liquor is sold or used by that manufacturer or
22importing distributor other than in an authorized tax-free
23manner shall pay to the Department the amount of the tax
24imposed pursuant to Section 8-1, less a discount which is
25allowed to reimburse the manufacturer or importing distributor
26for the expenses incurred in keeping and maintaining records,



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1preparing and filing the electronic returns, remitting the tax,
2and 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
14insure the payment of the tax imposed by this Article, require
15returns to be made more frequently than and covering periods of
16less than a month. Such return shall contain such further
17information as the Department may reasonably require.
18    It shall be presumed that all alcoholic liquors acquired or
19made by any importing distributor or manufacturer have been
20sold or used by him in this State and are the basis for the tax
21imposed by this Article unless proven, to the satisfaction of
22the Department, that such alcoholic liquors are (1) still in
23the possession of such importing distributor or manufacturer,
24or (2) prior to the termination of possession have been lost by
25theft or through unintentional destruction, or (3) that such
26alcoholic liquors are otherwise exempt from taxation under this



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2    If any payment provided for in this Section exceeds the
3manufacturer's or importing distributor's liabilities under
4this Act, as shown on an original report, the manufacturer or
5importing distributor may credit such excess payment against
6liability subsequently to be remitted to the Department under
7this Act, in accordance with reasonable rules adopted by the
8Department. If the Department subsequently determines that all
9or any part of the credit taken was not actually due to the
10manufacturer or importing distributor, the manufacturer's or
11importing distributor's discount shall be reduced by an amount
12equal to the difference between the discount as applied to the
13credit taken and that actually due, and the manufacturer or
14importing distributor shall be liable for penalties and
15interest on such difference.
16    The Department may require any foreign importer to file
17monthly information returns, by the 15th day of the month
18following the month which any such return covers, if the
19Department determines this to be necessary to the proper
20performance of the Department's functions and duties under this
21Act. Such return shall contain such information as the
22Department may reasonably require.
23    Every manufacturer and importing distributor, except for a
24manufacturer or importing distributor that in the preceding
25year had less than $50,000 of tax liability under this Article,
26shall also file, with the Department, a bond in an amount not



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1less than $1,000 and not to exceed $100,000 on a form to be
2approved by, and with a surety or sureties satisfactory to, the
3Department. Such bond shall be conditioned upon the
4manufacturer or importing distributor paying to the Department
5all monies becoming due from such manufacturer or importing
6distributor under this Article. The Department shall fix the
7penalty of such bond in each case, taking into consideration
8the amount of alcoholic liquor expected to be sold and used by
9such manufacturer or importing distributor, and the penalty
10fixed by the Department shall be sufficient, in the
11Department's opinion, to protect the State of Illinois against
12failure to pay any amount due under this Article, but the
13amount of the penalty fixed by the Department shall not exceed
14twice the amount of tax liability of a monthly return, nor
15shall the amount of such penalty be less than $1,000. The
16Department shall notify the Commission of the Department's
17approval or disapproval of any such manufacturer's or importing
18distributor's bond, or of the termination or cancellation of
19any such bond, or of the Department's direction to a
20manufacturer or importing distributor that he must file
21additional bond in order to comply with this Section. The
22Commission shall not issue a license to any applicant for a
23manufacturer's or importing distributor's license unless the
24Commission has received a notification from the Department
25showing that such applicant has filed a satisfactory bond with
26the Department hereunder and that such bond has been approved



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1by the Department. Failure by any licensed manufacturer or
2importing distributor to keep a satisfactory bond in effect
3with the Department or to furnish additional bond to the
4Department, when required hereunder by the Department to do so,
5shall be grounds for the revocation or suspension of such
6manufacturer's or importing distributor's license by the
7Commission. If a manufacturer or importing distributor fails to
8pay any amount due under this Article, his bond with the
9Department shall be deemed forfeited, and the Department may
10institute a suit in its own name on such bond.
11    After notice and opportunity for a hearing the State
12Commission may revoke or suspend the license of any
13manufacturer or importing distributor who fails to comply with
14the provisions of this Section. Notice of such hearing and the
15time and place thereof shall be in writing and shall contain a
16statement of the charges against the licensee. Such notice may
17be given by United States registered or certified mail with
18return receipt requested, addressed to the person concerned at
19his last known address and shall be given not less than 7 days
20prior to the date fixed for the hearing. An order revoking or
21suspending a license under the provisions of this Section may
22be reviewed in the manner provided in Section 7-10 of this Act.
23No new license shall be granted to a person whose license has
24been revoked for a violation of this Section or, in case of
25suspension, shall such suspension be terminated until he has
26paid to the Department all taxes and penalties which he owes



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1the State under the provisions of this Act.
2    Every manufacturer or importing distributor who has, as
3verified by the Department, continuously complied with the
4conditions of the bond under this Act for a period of 2 years
5shall be considered to be a prior continuous compliance
6taxpayer. In determining the consecutive period of time for
7qualification as a prior continuous compliance taxpayer, any
8consecutive period of time of qualifying compliance
9immediately prior to the effective date of this amendatory Act
10of 1987 shall be credited to any manufacturer or importing
12    A manufacturer or importing distributor that is a prior
13continuous compliance taxpayer under this Section and becomes a
14successor as the result of an acquisition, merger, or
15consolidation of a manufacturer or importing distributor shall
16be deemed to be a prior continuous compliance taxpayer with
17respect to the acquired, merged, or consolidated entity.
18    Every prior continuous compliance taxpayer shall be exempt
19from the bond requirements of this Act until the Department has
20determined the taxpayer to be delinquent in the filing of any
21return or deficient in the payment of any tax under this Act.
22Any taxpayer who fails to pay an admitted or established
23liability under this Act may also be required to post bond or
24other acceptable security with the Department guaranteeing the
25payment of such admitted or established liability.
26    The Department shall discharge any surety and shall release



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1and return any bond or security deposit assigned, pledged or
2otherwise provided to it by a taxpayer under this Section
3within 30 days after: (1) such taxpayer becomes a prior
4continuous compliance taxpayer; or (2) such taxpayer has ceased
5to collect receipts on which he is required to remit tax to the
6Department, has filed a final tax return, and has paid to the
7Department an amount sufficient to discharge his remaining tax
8liability 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
111, 2020.