[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB1888
SEE INDEX
Creates the Occupation and Use Tax Code. Codifies and
replaces the existing Use Tax Act, Service Use Tax Act,
Service Occupation Tax Act, and Retailers' Occupation Tax
Act. Repeals those Acts. Makes technical and conforming
changes. Corrects an obviously inaccurate reference to the
Service Occupation Tax Act to a correct reference to the
Article that imposes the service use tax. Corrects obviously
inaccurate references in the Use Tax Act, Service Occupation
Tax Act, and Service Use Tax Act to a Section that does not
exist to correct references to a Section concerning the
retailers' occupation tax. Corrects an obviously inaccurate
reference in the Section concerning high impact businesses to
a clause that does not exist to a correct reference to the
appropriate clause.
LRB9000671KDdvA
LRB9000671KDdvA
1 AN ACT to codify the law in relation to use and
2 occupation taxes.
3 WHEREAS, Codification of laws relating to occupation and
4 use taxes will achieve the goals of (i) consolidating the
5 many laws relating to the occupation and use taxes; (ii)
6 updating the often obsolete language currently in use in
7 these many laws; and (iii) incorporating uniform terminology
8 that will ensure consistency of understanding and
9 interpretation of these laws; and
10 WHEREAS, The Illinois General Assembly seeks to achieve
11 these goals by consolidating the many occupation and use tax
12 laws of Illinois into a single Occupation and Use Tax Code
13 without making any substantive changes in the meaning,
14 effect, or application of those laws; therefore
15 Be it enacted by the People of the State of Illinois,
16 represented in the General Assembly:
17 ARTICLE 1. GENERAL PROVISIONS
18 Section 1-1. Short title. This Act may be cited as the
19 Occupation and Use Tax Code.
20 Section 1-5. Applicability. Unless otherwise specified
21 in this Code, the provisions of each Section or subsection of
22 this Code apply to all of the taxes imposed under Articles
23 10, 15, 20, and 25. For example, if a Section or subsection
24 begins with the phrase "for purposes of the retailers'
25 occupation tax and use tax", the provisions of that Section
26 or subsection apply only to the retailers' occupation tax
27 imposed in Article 10 and the use tax imposed in Article 15.
28 Those provisions would not apply to the service occupation
29 tax imposed in Article 20 or the service use tax imposed in
-2- LRB9000671KDdvA
1 Article 25. If no language in a Section or subsection of
2 this Code specifically limits its application, then the
3 provisions of that Section or subsection apply to the
4 retailers' occupation tax imposed in Article 10, the use tax
5 imposed in Article 15, the service occupation tax imposed in
6 Article 20, and the service use tax imposed in Article 25.
7 (b) This Code, as enacted, is not intended to make any
8 substantive changes in the meaning, effect, or application of
9 the continued and codified provisions of the Retailers'
10 Occupation Tax Act, the Use Tax Act, the Service Occupation
11 Tax Act, or the Service Use Tax Act.
12 ARTICLE 5. DEFINITIONS
13 Section 5-5. Acquired outside this State. For purposes
14 of the use tax, "acquired outside this State", in addition to
15 its usual and popular meaning, also means the delivery,
16 outside Illinois, of tangible personal property that is
17 purchased in this State and delivered from a point in this
18 State to a point of delivery outside this State.
19 Section 5-10. Bulk vending machine. For purposes of the
20 retailers' occupation tax and the use tax, "bulk vending
21 machine" means a nonelectrically operated vending machine,
22 containing unsorted confections, nuts or other merchandise
23 which, when a coin of a denomination not larger than one cent
24 is inserted, are dispensed in equal portions, at random and
25 without selection by the customer.
26 Section 5-15. Bullion. "Bullion" means gold, silver, or
27 platinum in a bulk state with a purity of not less than 980
28 parts per 1,000.
-3- LRB9000671KDdvA
1 Section 5-20. Computer software. "Computer software"
2 means a set of statements, data, or instructions to be used
3 directly or indirectly in a computer in order to bring about
4 a certain result in any form in which those statements, data,
5 or instructions may be embodied, transmitted, or fixed, by
6 any method now known or hereafter developed, regardless of
7 whether the statements, data, or instructions are capable of
8 being perceived by or communicated to humans, and includes
9 prewritten or canned software that is held for repeated sale
10 or lease, and all associated documentation and materials, if
11 any, whether contained on magnetic tapes, discs, cards, or
12 other devices or media, but does not include software that is
13 adapted to specific individualized requirements of a
14 purchaser, custom-made and modified software designed for a
15 particular or limited use by a purchaser, or software used to
16 operate exempt machinery and equipment used in the process of
17 manufacturing or assembling tangible personal property for
18 wholesale or retail sale or lease.
19 For the purposes of this Code, computer software shall be
20 considered to be tangible personal property.
21 Section 5-25. Corporation, limited liability company,
22 society, association, foundation, or institution organized
23 and operated exclusively for educational purposes.
24 (a) A corporation, limited liability company, society,
25 association, foundation or institution organized and operated
26 exclusively for educational purposes shall include: all
27 tax-supported public schools; private schools which offer
28 systematic instruction in useful branches of learning by
29 methods common to public schools and which compare favorably
30 in their scope and intensity with the course of study
31 presented in tax-supported schools; vocational or technical
32 schools or institutes organized and operated exclusively to
33 provide a course of study of not less than 6 weeks duration
-4- LRB9000671KDdvA
1 and designed to prepare individuals to follow a trade or to
2 pursue a manual, technical, mechanical, industrial, business
3 or commercial occupation.
4 However, a corporation, limited liability company,
5 society, association, foundation or institution organized and
6 operated for the purpose of offering professional, trade or
7 business seminars of short duration, self-improvement or
8 personality development courses, courses which are
9 avocational or recreational in nature, courses pursued
10 entirely by open circuit television or radio, correspondence
11 courses, or courses which do not provide specialized training
12 within a specific vocational or technical field shall not be
13 considered to be organized and operated exclusively for
14 educational purposes.
15 (b) For purposes of the retailers' occupation tax, the
16 use tax, and the service occupation tax, a corporation,
17 limited liability company, society, association, foundation,
18 or institution organized and operated exclusively for
19 educational purposes shall also include licensed day care
20 centers as defined in Section 2.09 of the Child Care Act of
21 1969 which are operated by a not-for-profit corporation,
22 society, association, foundation, institution, or
23 organization.
24 Section 5-30. Cost price. For purposes of the service
25 occupation tax and the service use tax, "cost price" means
26 the consideration paid by the serviceman for a purchase
27 valued in money, whether paid in money or otherwise,
28 including cash, credits and services, and shall be determined
29 without any deduction on account of the supplier's cost of
30 the property sold or on account of any other expense incurred
31 by the supplier. When a serviceman contracts out part or all
32 of the services required in his sale of service, it shall be
33 presumed that the cost price to the serviceman of the
-5- LRB9000671KDdvA
1 property transferred to him or her by his or her
2 subcontractor is equal to 50% of the subcontractor's charges
3 to the serviceman in the absence of proof of the
4 consideration paid by the subcontractor for the purchase of
5 such property.
6 Section 5-35. Department. "Department" means the
7 Department of Revenue.
8 Section 5-40. Gasohol. "Gasohol" means motor fuel that
9 is no more than 90% gasoline and at least 10% denatured
10 ethanol that contains no more than 1.25% water by weight.
11 Section 5-45. Graphic arts production. "Graphic arts
12 production" means printing by one or more of the common
13 processes or graphic arts production services as those
14 processes and services are defined in Major Group 27 of the
15 U.S. Standard Industrial Classification Manual.
16 Section 5-50. Gross receipts. For purposes of the
17 retailers' occupation tax, "gross receipts" from the sales of
18 tangible personal property at retail means the total selling
19 price or the amount of such sales as defined in this Code. In
20 the case of charge and time sales, the amount thereof shall
21 be included only as and when payments are received by the
22 seller. Receipts or other consideration derived by a seller
23 from the sale, transfer or assignment of accounts receivable
24 to a wholly owned subsidiary will not be deemed payments
25 prior to the time the purchaser makes payment on such
26 accounts.
27 Section 5-55. Like kind and character. For purposes of
28 the retailers' occupation tax and the use tax, the phrase
29 "like kind and character" shall be liberally construed
-6- LRB9000671KDdvA
1 (including but not limited to any form of motor vehicle for
2 any form of motor vehicle, or any kind of farm or
3 agricultural implement for any other kind of farm or
4 agricultural implement), while not including a kind of item
5 which, if sold at retail by that retailer, would be exempt
6 from retailers' occupation tax and use tax as an isolated or
7 occasional sale.
8 Section 5-60. Low sulfur dioxide emission coal fueled
9 devices. "Low sulfur dioxide emission coal fueled devices"
10 means any device sold or used or intended for the purpose of
11 burning, combusting or converting locally available coal in a
12 manner which eliminates or significantly reduces the need for
13 additional sulfur dioxide abatement that would otherwise be
14 required under State or federal air emission standards. Such
15 device includes all machinery, equipment, structures and all
16 related apparatus of a coal gasification facility, including
17 coal feeding equipment, designed to convert locally available
18 coal into a low sulfur gaseous fuel and to manage all waste
19 and byproduct streams.
20 Section 5-65. Person. "Person" means any natural
21 individual, firm, partnership, association, joint stock
22 company, joint venture, public or private corporation,
23 limited liability company, or a receiver, executor, trustee,
24 guardian or other representative appointed by order of any
25 court.
26 Section 5-70. Photoprocessing. For purposes of the tax
27 imposed on photographs, negatives, and positives by this
28 Code, "photoprocessing" includes, but is not limited to,
29 developing films, positives, negatives, and transparencies,
30 and tinting, coloring, making, and enlarging prints.
31 Photoprocessing does not include color separation,
-7- LRB9000671KDdvA
1 typesetting, and platemaking by photographic means in the
2 graphic arts industry and does not include any procedure,
3 process, or activity connected with the creation of the
4 images on the film from which the negatives, positives, or
5 photographs are derived. The charge for in-house
6 photoprocessing may not be less than the photoprocessor's
7 cost price of materials. In transactions in which products
8 of photoprocessing are sold in conjunction with other
9 services, if a charge for the photoprocessing component is
10 not separately stated, tax is imposed on 50% of the entire
11 selling price unless the sale is made by a professional
12 photographer, in which case tax is imposed on 10% of the
13 entire selling price.
14 Section 5-75. Pollution control facilities. "Pollution
15 control facilities" means any system, method, construction,
16 device or appliance appurtenant thereto (i) used in this
17 State and acquired as an incident to the purchase of a
18 service from a serviceman, (ii) transferred by a serviceman,
19 or (iii) sold, used, or intended: (I) for the primary purpose
20 of eliminating, preventing, or reducing air and water
21 pollution as the term "air pollution" or "water pollution" is
22 defined in the Environmental Protection Act, or (II) for the
23 primary purpose of treating, pretreating, modifying or
24 disposing of any potential solid, liquid or gaseous pollutant
25 which if released without such treatment, pretreatment,
26 modification or disposal might be harmful, detrimental or
27 offensive to human, plant or animal life, or to property.
28 Section 5-80. Production agriculture. "Production
29 agriculture" means the raising of or the propagation of
30 livestock; crops for sale for human consumption; crops for
31 livestock consumption; and production seed stock grown for
32 the propagation of feed grains and the husbandry of animals
-8- LRB9000671KDdvA
1 or for the purpose of providing a food product, including the
2 husbandry of blood stock as a main source of providing a food
3 product. "Production agriculture" also means animal
4 husbandry, floriculture, aquaculture, horticulture, and
5 viticulture.
6 Section 5-85. Purchase at retail. For purposes of the
7 use tax, "purchase at retail" means the acquisition of the
8 ownership of or title to tangible personal property through a
9 sale at retail.
10 Section 5-90. Purchased from a serviceman. For purposes
11 of the service use tax, "purchased from a serviceman" means
12 the acquisition of the ownership of, or title to, tangible
13 personal property through a sale of service.
14 Section 5-95. Purchaser.
15 (a) For purposes of the retailers' occupation tax and
16 the use tax, "purchaser" means anyone who, through a sale at
17 retail, acquires the ownership of or title to tangible
18 personal property for a valuable consideration.
19 (b) For purposes of the service use tax, "purchaser"
20 means anyone who, through a sale of service, acquires the
21 ownership of, or title to, any tangible personal property.
22 Section 5-100. Reseller of motor fuel. For purposes of
23 the retailers' occupation tax, "reseller of motor fuel" means
24 any person engaged in the business of selling or delivering
25 or transferring title of motor fuel to another person other
26 than for use or consumption. No person shall act as a
27 reseller of motor fuel within this State without first being
28 registered as a reseller pursuant to Section 35-50 or a
29 retailer pursuant to Section 35-5.
-9- LRB9000671KDdvA
1 Section 5-105. Retailer.
2 (a) For purposes of the use tax, "retailer" means and
3 includes every person engaged in the business of making sales
4 at retail as defined in Section 5-115.
5 A person who holds himself or herself out as being
6 engaged (or who habitually engages) in selling tangible
7 personal property at retail is a retailer hereunder with
8 respect to such sales (and not primarily in a service
9 occupation) notwithstanding the fact that such person designs
10 and produces such tangible personal property on special order
11 for the purchaser and in such a way as to render the property
12 of value only to such purchaser, if such tangible personal
13 property so produced on special order serves substantially
14 the same function as stock or standard items of tangible
15 personal property that are sold at retail.
16 A person whose activities are organized and conducted
17 primarily as a not-for-profit service enterprise, and who
18 engages in selling tangible personal property at retail
19 (whether to the public or merely to members and their guests)
20 is a retailer with respect to such transactions, excepting
21 only a person organized and operated exclusively for
22 charitable, religious or educational purposes either (1), to
23 the extent of sales by such person to its members, students,
24 patients or inmates of tangible personal property to be used
25 primarily for the purposes of such person, or (2), to the
26 extent of sales by such person of tangible personal property
27 which is not sold or offered for sale by persons organized
28 for profit. The selling of school books and school supplies
29 by schools at retail to students is not "primarily for the
30 purposes of" the school which does such selling. This
31 paragraph does not apply to nor subject to taxation
32 occasional dinners, social or similar activities of a person
33 organized and operated exclusively for charitable, religious
34 or educational purposes, whether or not such activities are
-10- LRB9000671KDdvA
1 open to the public.
2 A person who is the recipient of a grant or contract
3 under Title VII of the Older Americans Act of 1965 (P.L.
4 92-258) and serves meals to participants in the federal
5 Nutrition Program for the Elderly in return for contributions
6 established in amount by the individual participant pursuant
7 to a schedule of suggested fees as provided for in the
8 federal Act is not a retailer under Article 15 with respect
9 to such transactions.
10 Persons who engage in the business of transferring
11 tangible personal property upon the redemption of trading
12 stamps are retailers hereunder when engaged in such business.
13 The isolated or occasional sale of tangible personal
14 property at retail by a person who does not hold himself out
15 as being engaged (or who does not habitually engage) in
16 selling such tangible personal property at retail or a sale
17 through a bulk vending machine does not make such person a
18 retailer hereunder. However, any person who is engaged in a
19 business which is not subject to the tax imposed by Article
20 10 because of involving the sale of or a contract to sell
21 real estate or a construction contract to improve real
22 estate, but who, in the course of conducting such business,
23 transfers tangible personal property to users or consumers in
24 the finished form in which it was purchased, and which does
25 not become real estate, under any provision of a construction
26 contract or real estate sale or real estate sales agreement
27 entered into with some other person arising out of or because
28 of such nontaxable business, is a retailer to the extent of
29 the value of the tangible personal property so transferred.
30 If, in such transaction, a separate charge is made for the
31 tangible personal property so transferred, the value of such
32 property, for the purposes of Article 15, is the amount so
33 separately charged, but not less than the cost of such
34 property to the transferor; if no separate charge is made,
-11- LRB9000671KDdvA
1 the value of such property, for the purposes of Article 15,
2 is the cost to the transferor of such tangible personal
3 property.
4 (b) For purposes of the retailers' occupation tax and
5 the use tax, a person who is engaged in the business of
6 leasing or renting motor vehicles to others and who, in
7 connection with such business sells any used motor vehicle to
8 a purchaser for his use and not for the purpose of resale, is
9 a retailer engaged in the business of selling tangible
10 personal property at retail under Articles 10 and 15 to the
11 extent of the value of the vehicle sold. For the purpose of
12 this Section, "motor vehicle" has the meaning prescribed in
13 Section 1-157 of the Illinois Vehicle Code. (Nothing
14 provided herein shall affect liability incurred under
15 Articles 10 and 15 because of the sale at retail of such
16 motor vehicles to a lessor or use of such motor vehicles by a
17 lessor.)
18 Section 5-110. Retailer maintaining a place of business
19 in this State. For purposes of the use tax, "retailer
20 maintaining a place of business in this State", or any like
21 term, means and includes any of the following retailers:
22 (1) A retailer having or maintaining within this
23 State, directly or by a subsidiary, an office,
24 distribution house, sales house, warehouse or other place
25 of business, or any agent or other representative
26 operating within this State under the authority of the
27 retailer or its subsidiary, irrespective of whether such
28 place of business or agent or other representative is
29 located here permanently or temporarily, or whether such
30 retailer or subsidiary is licensed to do business in this
31 State. However, the ownership of property that is located
32 at the premises of a printer with which the retailer has
33 contracted for printing and that consists of the final
-12- LRB9000671KDdvA
1 printed product, property that becomes a part of the
2 final printed product, or copy from which the printed
3 product is produced shall not result in the retailer
4 being deemed to have or maintain an office, distribution
5 house, sales house, warehouse, or other place of business
6 within this State.
7 (2) A retailer soliciting orders for tangible
8 personal property by means of a telecommunication or
9 television shopping system (which utilizes toll free
10 numbers) which is intended by the retailer to be
11 broadcast by cable television or other means of
12 broadcasting, to consumers located in this State.
13 (3) A retailer, pursuant to a contract with a
14 broadcaster or publisher located in this State,
15 soliciting orders for tangible personal property by means
16 of advertising which is disseminated primarily to
17 consumers located in this State and only secondarily to
18 bordering jurisdictions.
19 (4) A retailer soliciting orders for tangible
20 personal property by mail if the solicitations are
21 substantial and recurring and if the retailer benefits
22 from any banking, financing, debt collection,
23 telecommunication, or marketing activities occurring in
24 this State or benefits from the location in this State of
25 authorized installation, servicing, or repair facilities.
26 (5) A retailer that is owned or controlled by the
27 same interests that own or control any retailer engaging
28 in business in the same or similar line of business in
29 this State.
30 (6) A retailer having a franchisee or licensee
31 operating under its trade name if the franchisee or
32 licensee is required to collect the tax under this
33 Section.
34 (7) A retailer, pursuant to a contract with a cable
-13- LRB9000671KDdvA
1 television operator located in this State, soliciting
2 orders for tangible personal property by means of
3 advertising which is transmitted or distributed over a
4 cable television system in this State.
5 (8) A retailer engaging in activities in Illinois,
6 which activities in the state in which the retail
7 business engaging in such activities is located would
8 constitute maintaining a place of business in that state.
9 Section 5-115. Sale at retail.
10 (a) "Sale at retail" means any transfer of the ownership
11 of or title to tangible personal property to a purchaser, for
12 the purpose of use or consumption, and not for the purpose of
13 resale in any form as tangible personal property to the
14 extent not first subjected to a use for which it was
15 purchased, for a valuable consideration: provided that the
16 property purchased is deemed to be purchased for the purpose
17 of resale, despite first being used, to the extent to which
18 it is resold as an ingredient of an intentionally produced
19 product or byproduct of manufacturing. For this purpose,
20 slag produced as an incident to manufacturing pig iron or
21 steel and sold is considered to be an intentionally produced
22 byproduct of manufacturing. "Sale at retail" shall be
23 construed to include any transfer, whether made for or
24 without a valuable consideration, for resale in any form as
25 tangible personal property unless made in compliance with
26 Section 35-50 of this Code. Transactions whereby the
27 possession of the property is transferred but the seller
28 retains the title as security for payment of the selling
29 price shall be deemed to be sales.
30 "Sale at retail" shall be construed to include any
31 Illinois florist's sales transaction in which the purchase
32 order is received in Illinois by a florist and the sale is
33 for use or consumption, but the Illinois florist has a
-14- LRB9000671KDdvA
1 florist in another state deliver the property to the
2 purchaser or the purchaser's donee in such other state.
3 The purchase, employment and transfer of such tangible
4 personal property as newsprint and ink for the primary
5 purpose of conveying news (with or without other information)
6 is not a purchase, use or sale of service or of tangible
7 personal property.
8 (b) For purposes of the retailers' occupation tax, the
9 service occupation tax, and the service use tax, "sale at
10 retail" shall be construed to include any transfer of the
11 ownership of or title to tangible personal property to a
12 purchaser, for use or consumption by any other person to whom
13 such purchaser may transfer the tangible personal property
14 without a valuable consideration.
15 Sales of tangible personal property, which property, to
16 the extent not first subjected to a use for which it was
17 purchased, as an ingredient or constituent, goes into and
18 forms a part of tangible personal property subsequently the
19 subject of a "sale at retail", are not sales at retail as
20 defined in this Code: provided that the property purchased is
21 deemed to be purchased for the purpose of resale, despite
22 first being used, to the extent to which it is resold as an
23 ingredient of an intentionally produced product or byproduct
24 of manufacturing.
25 A person whose activities are organized and conducted
26 primarily as a not-for-profit service enterprise, and who
27 engages in selling tangible personal property at retail
28 (whether to the public or merely to members and their guests)
29 is engaged in the business of selling tangible personal
30 property at retail with respect to such transactions,
31 excepting only a person organized and operated exclusively
32 for charitable, religious or educational purposes either (1)
33 to the extent of sales by such person to its members,
34 students, patients or inmates of tangible personal property
-15- LRB9000671KDdvA
1 to be used primarily for the purposes of such person, or (2)
2 to the extent of sales by such person of tangible personal
3 property which is not sold or offered for sale by persons
4 organized for profit. The selling of school books and school
5 supplies by schools at retail to students is not "primarily
6 for the purposes of" the school which does such selling. The
7 provisions of this paragraph shall not apply to nor subject
8 to taxation occasional dinners, socials or similar activities
9 of a person organized and operated exclusively for
10 charitable, religious or educational purposes, whether or not
11 such activities are open to the public.
12 A person who is the recipient of a grant or contract
13 under Title VII of the Older Americans Act of 1965 (P.L.
14 92-258) and serves meals to participants in the federal
15 Nutrition Program for the Elderly in return for contributions
16 established in amount by the individual participant pursuant
17 to a schedule of suggested fees as provided for in the
18 federal Act is not engaged in the business of selling
19 tangible personal property at retail with respect to such
20 transactions.
21 The isolated or occasional sale of tangible personal
22 property at retail by a person who does not hold himself out
23 as being engaged (or who does not habitually engage) in
24 selling such tangible personal property at retail, or a sale
25 through a bulk vending machine, does not constitute engaging
26 in a business of selling such tangible personal property at
27 retail within the meaning of this Code; provided that any
28 person who is engaged in a business which is not subject to
29 the taxes imposed by this Code because of involving the sale
30 of or a contract to sell real estate or a construction
31 contract to improve real estate or a construction contract to
32 engineer, install, and maintain an integrated system of
33 products, but who, in the course of conducting such business,
34 transfers tangible personal property to users or consumers in
-16- LRB9000671KDdvA
1 the finished form in which it was purchased, and which does
2 not become real estate or was not engineered and installed,
3 under any provision of a construction contract or real estate
4 sale or real estate sales agreement entered into with some
5 other person arising out of or because of such nontaxable
6 business, is engaged in the business of selling tangible
7 personal property at retail to the extent of the value of the
8 tangible personal property so transferred. If, in such a
9 transaction, a separate charge is made for the tangible
10 personal property so transferred, the value of such property,
11 for the purpose of this Code, shall be the amount so
12 separately charged, but not less than the cost of such
13 property to the transferor; if no separate charge is made,
14 the value of such property, for the purposes of this Code, is
15 the cost to the transferor of such tangible personal
16 property. Construction contracts for the improvement of real
17 estate consisting of engineering, installation, and
18 maintenance of voice, data, video, security, and all
19 telecommunication systems do not constitute engaging in a
20 business of selling tangible personal property at retail
21 within the meaning of this Code if they are sold at one
22 specified contract price.
23 A person who holds himself or herself out as being
24 engaged (or who habitually engages) in selling tangible
25 personal property at retail is a person engaged in the
26 business of selling tangible personal property at retail
27 hereunder with respect to such sales (and not primarily in a
28 service occupation) notwithstanding the fact that such person
29 designs and produces such tangible personal property on
30 special order for the purchaser and in such a way as to
31 render the property of value only to such purchaser, if such
32 tangible personal property so produced on special order
33 serves substantially the same function as stock or standard
34 items of tangible personal property that are sold at retail.
-17- LRB9000671KDdvA
1 Persons who engage in the business of transferring
2 tangible personal property upon the redemption of trading
3 stamps are engaged in the business of selling such property
4 at retail and shall be liable for and shall pay the tax
5 imposed by this Code on the basis of the retail value of the
6 property transferred upon redemption of such stamps.
7 Section 5-120. Selling price.
8 (a) For purposes of the retailers' occupation tax and
9 the use tax, "selling price" means the consideration for a
10 sale valued in money whether received in money or otherwise,
11 including cash, credits, property other than as hereinafter
12 provided, and services, but not including the value of or
13 credit given for traded-in tangible personal property where
14 the item that is traded-in is of like kind and character as
15 that which is being sold, and shall be determined without any
16 deduction on account of the cost of the property sold, the
17 cost of materials used, labor or service cost or any other
18 expense whatsoever, but does not include, for purposes of the
19 use tax only, interest or finance charges which appear as
20 separate items on the bill of sale or sales contract nor, for
21 purposes of the retailers' occupation tax and the use tax,
22 charges that are added to prices by sellers on account of the
23 seller's tax liability under Article 10, or on account of the
24 seller's duty to collect, from the purchaser, the tax that is
25 imposed by Article 15, or on account of the seller's tax
26 liability under Section 8-11-1 of the Illinois Municipal
27 Code, or on account of the seller's tax liability under the
28 County Retailers' Occupation Tax Act, or on account of the
29 seller's tax liability under any tax imposed under the
30 Regional Transportation Authority Act. Effective December 1,
31 1985, "selling price" shall include charges that are added to
32 prices by sellers on account of the seller's tax liability
33 under the Cigarette Tax Act, on account of the seller's duty
-18- LRB9000671KDdvA
1 to collect, from the purchaser, the tax imposed under the
2 Cigarette Use Tax Act, and on account of the seller's duty to
3 collect, from the purchaser, any cigarette tax imposed by a
4 home rule unit.
5 (b) For purposes of the retailers' occupation tax,
6 "selling price" does not include charges that are added to
7 prices by sellers on account of the seller's tax liability
8 under the Home Rule Municipal Soft Drink Retailers'
9 Occupation Tax. "Amount of sale" shall have the same meaning
10 as "selling price".
11 (c) For purposes of the service occupation tax and the
12 service use tax, "selling price" means the consideration for
13 a sale valued in money whether received in money or
14 otherwise, including cash, credits and service, and shall be
15 determined without any deduction on account of the
16 serviceman's cost of the property sold, the cost of materials
17 used, labor or service cost or any other expense whatsoever,
18 but does not include interest or finance charges which appear
19 as separate items on the bill of sale or sales contract nor
20 charges that are added to prices by sellers on account of the
21 seller's duty to collect, from the purchaser, the tax that is
22 imposed by Article 25.
23 Section 5-125. Serviceman. "Serviceman" means any person
24 who is engaged in the occupation of making sales of service.
25 Section 5-130. Serviceman maintaining a place of
26 business in this State. For purposes of the service use tax,
27 "serviceman maintaining a place of business in this State",
28 or any like term, means and includes any serviceman:
29 (1) having or maintaining within this State,
30 directly or by a subsidiary, an office, distribution
31 house, sales house, warehouse or other place of business,
32 or any agent or other representative operating within
-19- LRB9000671KDdvA
1 this State under the authority of the serviceman or its
2 subsidiary, irrespective of whether such place of
3 business or agent or other representative is located here
4 permanently or temporarily, or whether such serviceman or
5 subsidiary is licensed to do business in this State;
6 (2) soliciting orders for tangible personal
7 property by means of a telecommunication or television
8 shopping system (which utilizes toll free numbers) which
9 is intended by the retailer to be broadcast by cable
10 television or other means of broadcasting, to consumers
11 located in this State;
12 (3) pursuant to a contract with a broadcaster or
13 publisher located in this State, soliciting orders for
14 tangible personal property by means of advertising which
15 is disseminated primarily to consumers located in this
16 State and only secondarily to bordering jurisdictions;
17 (4) soliciting orders for tangible personal
18 property by mail if the solicitations are substantial and
19 recurring and if the retailer benefits from any banking,
20 financing, debt collection, telecommunication, or
21 marketing activities occurring in this State or benefits
22 from the location in this State of authorized
23 installation, servicing, or repair facilities;
24 (5) being owned or controlled by the same interests
25 which own or control any retailer engaging in business in
26 the same or similar line of business in this State;
27 (6) having a franchisee or licensee operating under
28 its trade name if the franchisee or licensee is required
29 to collect the tax under this Section;
30 (7) pursuant to a contract with a cable television
31 operator located in this State, soliciting orders for
32 tangible personal property by means of advertising which
33 is transmitted or distributed over a cable television
34 system in this State; or
-20- LRB9000671KDdvA
1 (8) engaging in activities in Illinois, which
2 activities in the state in which the supply business
3 engaging in such activities is located would constitute
4 maintaining a place of business in that state.
5 Section 5-135. Supplier. For purposes of the service
6 occupation tax and the service use tax, "supplier" means any
7 person who makes sales of tangible personal property to
8 servicemen for the purpose of resale as an incident to a sale
9 of service.
10 Section 5-140. Transfer. For purposes of the service
11 occupation tax, "transfer" means any transfer of the title to
12 property or of the ownership of property whether or not the
13 transferor retains title as security for the payment of
14 amounts due him from the transferee.
15 Section 5-145. Use.
16 (a) For purposes of the use tax, "use" means the
17 exercise by any person of any right or power over tangible
18 personal property incident to the ownership of that property,
19 except that it does not include the sale of such property in
20 any form as tangible personal property in the regular course
21 of business to the extent that such property is not first
22 subjected to a use for which it was purchased, and does not
23 include the use of such property by its owner for
24 demonstration purposes: provided that the property purchased
25 is deemed to be purchased for the purpose of resale, despite
26 first being used, to the extent to which it is resold as an
27 ingredient of an intentionally produced product or by-product
28 of manufacturing. "Use" does not mean the demonstration use
29 or interim use of tangible personal property by a retailer
30 before he sells that tangible personal property. For
31 watercraft or aircraft, if the period of demonstration use or
-21- LRB9000671KDdvA
1 interim use by the retailer exceeds 18 months, the retailer
2 shall pay on the retailers' original cost price the tax
3 imposed by Article 15, and no credit for that tax is
4 permitted if the watercraft or aircraft is subsequently sold
5 by the retailer. "Use" does not mean the physical
6 incorporation of tangible personal property, to the extent
7 not first subjected to a use for which it was purchased, as
8 an ingredient or constituent, into other tangible personal
9 property (1) which is sold in the regular course of business
10 or (2) which the person incorporating such ingredient or
11 constituent therein has undertaken at the time of such
12 purchase to cause to be transported in interstate commerce to
13 destinations outside the State of Illinois: provided that the
14 property purchased is deemed to be purchased for the purpose
15 of resale, despite first being used, to the extent to which
16 it is resold as an ingredient of an intentionally produced
17 product or by-product of manufacturing.
18 (b) For purposes of the service use tax, "use" means the
19 exercise by any person of any right or power over tangible
20 personal property incident to the ownership of that property,
21 but does not include the sale or use for demonstration by him
22 of that property in any form as tangible personal property in
23 the regular course of business. "Use" does not mean the
24 interim use of tangible personal property nor the physical
25 incorporation of tangible personal property, as an ingredient
26 or constituent, into other tangible personal property, (1)
27 which is sold in the regular course of business or (2) which
28 the person incorporating such ingredient or constituent
29 therein has undertaken at the time of such purchase to cause
30 to be transported in interstate commerce to destinations
31 outside the State of Illinois.
32 Section 5-150. Watercraft. For purposes of the
33 retailers' occupation tax and the use tax, "watercraft" means
-22- LRB9000671KDdvA
1 a Class 2, Class 3, or Class 4 watercraft as defined in
2 Section 3-2 of the Boat Registration and Safety Act, a
3 personal watercraft, or any boat equipped with an inboard
4 motor.
5 ARTICLE 10. IMPOSITION OF THE RETAILERS' OCCUPATION TAX
6 Section 10-5. Tax imposed. A tax is imposed upon persons
7 engaged in the business of selling at retail tangible
8 personal property, including computer software, and including
9 photographs, negatives, and positives that are the product of
10 photoprocessing, but not including products of
11 photoprocessing produced for use in motion pictures for
12 public commercial exhibition. The tax imposed in this Article
13 shall be known as the "retailers' occupation tax".
14 Section 10-10. Tax additional. The tax imposed in this
15 Article shall be in addition to all other occupation or
16 privilege taxes imposed by the State of Illinois or by any
17 municipal corporation or political subdivision thereof.
18 Section 10-15. Rate of tax. Unless otherwise provided
19 in this Section, the tax imposed by this Article is at the
20 rate of 6.25% of gross receipts from sales of tangible
21 personal property made in the course of business.
22 With respect to gasohol, as defined in Section 5-40, the
23 tax imposed by this Article applies to 70% of the proceeds of
24 sales made on or after January 1, 1990, and before July 1,
25 1999, and to 100% of the proceeds of sales made thereafter,
26 except that from July 1, 1997 to July 1, 1999, the rate shall
27 be 85% for gasohol sold in this State during the 12 months
28 beginning July 1 following any calendar year for which the
29 Department has determined that the percentages in Section 10
30 of the Gasohol Fuels Tax Abatement Act have not been met.
-23- LRB9000671KDdvA
1 With respect to food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks, and food that has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances,
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person, and insulin, urine testing
8 materials, syringes, and needles used by diabetics, for human
9 use, the tax is imposed at the rate of 1%. For the purposes
10 of this Section, the term "soft drinks" means any complete,
11 finished, ready-to-use, non-alcoholic drink, whether
12 carbonated or not, including but not limited to soda water,
13 cola, fruit juice, vegetable juice, carbonated water, and all
14 other preparations commonly known as soft drinks of whatever
15 kind or description that are contained in any closed or
16 sealed bottle, can, carton, or container, regardless of size.
17 "Soft drinks" does not include coffee, tea, non-carbonated
18 water, infant formula, milk or milk products as defined in
19 the Grade A Pasteurized Milk and Milk Products Act, or drinks
20 containing 50% or more natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Code, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 Section 10-20. Purchaser refunds. If a seller collects
28 an amount (however designated) that purports to reimburse the
29 seller for retailers' occupation tax liability measured by
30 receipts that are not subject to retailers' occupation tax,
31 or if a seller, in collecting an amount (however designated)
32 that purports to reimburse the seller for retailers'
33 occupation tax liability measured by receipts that are
-24- LRB9000671KDdvA
1 subject to tax under this Article, collects more from the
2 purchaser than the seller's retailers' occupation tax
3 liability on the transaction, the purchaser shall have a
4 legal right to claim a refund of that amount from the seller.
5 If, however, that amount is not refunded to the purchaser for
6 any reason, the seller is liable to pay that amount to the
7 Department. This paragraph does not apply to an amount
8 collected by the seller as reimbursement for the seller's
9 retailers' occupation tax liability on receipts that are
10 subject to tax under this Article as long as the collection
11 is made in compliance with the tax collection brackets
12 prescribed by the Department in its rules and regulations.
13 Section 10-25. Serviceman transfer. Tangible personal
14 property purchased by a serviceman, as defined in Section
15 5-125, is subject to the tax imposed by this Article when
16 purchased for transfer by the serviceman incidental to
17 completion of a maintenance agreement.
18 Section 10-30. Prepayment of tax by motor fuel retailer.
19 Any person engaged in the business of selling motor fuel at
20 retail, as defined in the Motor Fuel Tax Law, and who is not
21 a licensed distributor or supplier, as defined in the Motor
22 Fuel Tax Law, shall prepay to his or her distributor,
23 supplier, or other reseller of motor fuel a portion of the
24 tax imposed by this Article if the distributor, supplier, or
25 other reseller of motor fuel is registered under Sections
26 35-5 through 35-50 of this Code. The prepayment requirement
27 provided for in this Section does not apply to liquid propane
28 gas.
29 The retailers' occupation tax paid to the distributor,
30 supplier, or other reseller shall be an amount equal to $0.04
31 per gallon of the motor fuel, except gasohol as defined in
32 Section 5-40 of this Code which shall be an amount equal to
-25- LRB9000671KDdvA
1 $0.03 per gallon, purchased from the distributor, supplier,
2 or other reseller.
3 Any person engaged in the business of selling motor fuel
4 at retail shall be entitled to a credit against tax due under
5 this Article in an amount equal to the tax paid to the
6 distributor, supplier, or other reseller.
7 Every distributor, supplier, or other reseller registered
8 as provided in Sections 35-5 through 35-50 of this Code shall
9 remit the prepaid tax on all motor fuel that is due from any
10 person engaged in the business of selling at retail motor
11 fuel with the returns filed under Section 10-40 or Sections
12 50-5 through 50-140 of this Code, but the vendors discount
13 provided in Sections 50-5 through 50-140 shall not apply to
14 the amount of prepaid tax that is remitted. Any distributor
15 or supplier who fails to properly collect and remit the tax
16 shall be liable for the tax. For purposes of this Section,
17 the prepaid tax is due on invoiced gallons sold during a
18 month by the 20th day of the following month.
19 Section 10-35. Motor fuel distributor or supplier;
20 statement of purchases. Every such distributor or supplier
21 shall deliver a statement of tax paid to each purchaser and
22 the Department of Revenue not later than the 20th day of the
23 month following the month during which a transaction
24 occurred, showing: the number of gallons of motor fuel sold
25 or distributed during the preceding month to that purchaser;
26 identifying the purchaser to whom it was sold or distributed,
27 including the purchaser's tax registration number; and the
28 amount collected from the purchaser.
29 Section 10-40. Reseller of motor fuel; filing of
30 returns. Resellers of motor fuel shall file a return by the
31 20th of the month following the month during which a
32 transaction occurred showing an itemized statement of the
-26- LRB9000671KDdvA
1 amount of motor fuel sold, distributed and used by the
2 reseller, identifying the purchaser to whom it was sold
3 including the purchaser's tax registration number, the amount
4 of tax collected from the purchaser, or delivery point if the
5 motor fuel was delivered to an unregistered purchaser outside
6 this State, name and address and the total quantity of motor
7 fuel sold or transferred to each purchaser in the preceding
8 calendar month and such other information as the Department
9 may reasonably require.
10 Section 10-45. Procedures for filing return of motor
11 fuel resellers. All provisions of Sections 30-30, 35-75,
12 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
13 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
14 apply to the retailers' occupation tax shall apply, as far as
15 practicable, to returns filed pursuant to Section 10-40.
16 ARTICLE 15. IMPOSITION OF THE USE TAX
17 Section 15-5. Tax imposed. A tax is imposed upon the
18 privilege of using in this State tangible personal property
19 purchased at retail from a retailer, including computer
20 software, and including photographs, negatives, and positives
21 that are the product of photoprocessing, but not including
22 products of photoprocessing produced for use in motion
23 pictures for commercial exhibition. The tax imposed in this
24 Article shall be known as the "use tax".
25 Section 15-10. Tax additional. The tax imposed in this
26 Article shall be in addition to all other occupation or
27 privilege taxes imposed by the State of Illinois or by any
28 municipal corporation or political subdivision thereof.
29 Section 15-15. Rate of tax. Unless otherwise provided
-27- LRB9000671KDdvA
1 in this Section, the tax imposed by this Article is at the
2 rate of 6.25% of either the selling price or the fair market
3 value, if any, of the tangible personal property. In all
4 cases where property functionally used or consumed is the
5 same as the property that was purchased at retail, then the
6 tax is imposed on the selling price of the property. In all
7 cases where property functionally used or consumed is a
8 by-product or waste product that has been refined,
9 manufactured, or produced from property purchased at retail,
10 then the tax is imposed on the lower of the fair market
11 value, if any, of the specific property so used in this State
12 or on the selling price of the property purchased at retail.
13 For purposes of this Section "fair market value" means the
14 price at which property would change hands between a willing
15 buyer and a willing seller, neither being under any
16 compulsion to buy or sell and both having reasonable
17 knowledge of the relevant facts. The fair market value shall
18 be established by Illinois sales by the taxpayer of the same
19 property as that functionally used or consumed, or if there
20 are no such sales by the taxpayer, then comparable sales or
21 purchases of property of like kind and character in Illinois.
22 With respect to gasohol, the tax imposed by this Article
23 applies to 70% of the proceeds of sales made on or after
24 January 1, 1990, and before July 1, 1999, and to 100% of the
25 proceeds of sales made thereafter, except that from July 1,
26 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
27 in this State during the 12 months beginning July 1 following
28 any calendar year for which the Department has determined
29 that the percentages in Section 10 of the Gasohol Fuels Tax
30 Abatement Act have not been met.
31 With respect to food for human consumption that is to be
32 consumed off the premises where it is sold (other than
33 alcoholic beverages, soft drinks, and food that has been
34 prepared for immediate consumption) and prescription and
-28- LRB9000671KDdvA
1 nonprescription medicines, drugs, medical appliances,
2 modifications to a motor vehicle for the purpose of rendering
3 it usable by a disabled person, and insulin, urine testing
4 materials, syringes, and needles used by diabetics, for human
5 use, the tax is imposed at the rate of 1%. For the purposes
6 of this Section, the term "soft drinks" means any complete,
7 finished, ready-to-use, non-alcoholic drink, whether
8 carbonated or not, including but not limited to soda water,
9 cola, fruit juice, vegetable juice, carbonated water, and all
10 other preparations commonly known as soft drinks of whatever
11 kind or description that are contained in any closed or
12 sealed bottle, can, carton, or container, regardless of size.
13 "Soft drinks" does not include coffee, tea, non-carbonated
14 water, infant formula, milk or milk products as defined in
15 the Grade A Pasteurized Milk and Milk Products Act, or drinks
16 containing 50% or more natural fruit or vegetable juice.
17 Notwithstanding any other provisions of this Code, "food
18 for human consumption that is to be consumed off the premises
19 where it is sold" includes all food sold through a vending
20 machine, except soft drinks and food products that are
21 dispensed hot from a vending machine, regardless of the
22 location of the vending machine.
23 If the property that is purchased at retail from a
24 retailer is acquired outside Illinois and used outside
25 Illinois before being brought to Illinois for use here and is
26 taxable under this Article, the "selling price" on which the
27 tax is computed shall be reduced by an amount that represents
28 a reasonable allowance for depreciation for the period of
29 prior out-of-state use.
30 Section 15-20. Collection. The tax imposed by this
31 Article shall be collected from the purchaser by a retailer
32 maintaining a place of business in this State or a retailer
33 authorized by the Department under Section 60-10 of this
-29- LRB9000671KDdvA
1 Code, and shall be remitted to the Department as provided in
2 Sections 50-5 through 50-140 of this Code.
3 The tax imposed by this Article that is not paid to a
4 retailer under this Section shall be paid to the Department
5 directly by any person using the property within this State
6 as provided in Section 50-155 of this Code.
7 Retailers shall collect the tax from users by adding the
8 tax to the selling price of tangible personal property, when
9 sold for use, in the manner prescribed by the Department.
10 The Department may adopt and promulgate reasonable rules and
11 regulations for the adding of the tax by retailers to selling
12 prices by prescribing bracket systems for the purpose of
13 enabling the retailers to add and collect, as far as
14 practicable, the amount of the tax.
15 If a seller collects use tax measured by receipts that
16 are not subject to use tax, or if a seller, in collecting use
17 tax measured by receipts that are subject to tax under this
18 Article, collects more from the purchaser than the required
19 amount of the use tax on the transaction, the purchaser shall
20 have a legal right to claim a refund of that amount from the
21 seller. If, however, that amount is not refunded to the
22 purchaser for any reason, the seller is liable to pay that
23 amount to the Department. This paragraph does not apply to
24 an amount collected by the seller as use tax on receipts that
25 are subject to tax under this Article as long as the
26 collection is made in compliance with the tax collection
27 brackets prescribed by the Department in its rules and
28 regulations.
29 Section 15-25. R.O.T. nontaxability. If the seller of
30 tangible personal property for use would not be taxable under
31 Article 10 of this Code despite all elements of the sale
32 occurring in Illinois, then the tax imposed by this Article
33 does not apply to the use of the tangible personal property
-30- LRB9000671KDdvA
1 in this State.
2 Section 15-30. Serviceman transfer. Tangible personal
3 property purchased by a serviceman, as defined in Section
4 5-125, is subject to the tax imposed by this Article when
5 purchased for transfer by the serviceman incidental to
6 completion of a maintenance agreement.
7 Section 15-35. Method of stating tax. The tax imposed
8 by this Article shall when collected be stated as a distinct
9 item separate and apart from the selling price of the
10 tangible personal property. However, where it is not possible
11 to state the sales tax separately in situations such as sales
12 from vending machines or sales of liquor by the drink the
13 Department may by rule exempt such sales from this
14 requirement so long as purchasers are notified by a sign that
15 the tax is included in the selling price.
16 ARTICLE 20. IMPOSITION OF THE SERVICE OCCUPATION TAX
17 Section 20-5. Tax imposed. A tax is imposed upon all
18 persons engaged in the business of making sales of service
19 (referred to as "servicemen") on all tangible personal
20 property transferred as an incident of a sale of service,
21 including computer software, and including photographs,
22 negatives, and positives that are the product of
23 photoprocessing, but not including products of
24 photoprocessing produced for use in motion pictures for
25 public commercial exhibition. The tax imposed in this Article
26 shall be known as the "service occupation tax".
27 Section 20-10. Tax additional. The tax imposed in this
28 Article shall be in addition to all other occupation or
29 privilege taxes imposed by the State of Illinois or by any
-31- LRB9000671KDdvA
1 municipal corporation or political subdivision thereof.
2 Section 20-15. Rate of tax. Unless otherwise provided in
3 this Section, the tax imposed by this Article is at the rate
4 of 6.25% of the "selling price", as defined in Section 5-120,
5 of the tangible personal property. For the purpose of
6 computing this tax, in no event shall the "selling price" be
7 less than the cost price to the serviceman of the tangible
8 personal property transferred. The selling price of each
9 item of tangible personal property transferred as an incident
10 of a sale of service may be shown as a distinct and separate
11 item on the serviceman's billing to the service customer. If
12 the selling price is not so shown, the selling price of the
13 tangible personal property is deemed to be 50% of the
14 serviceman's entire billing to the service customer. When,
15 however, a serviceman contracts to design, develop, and
16 produce special order machinery or equipment, the tax imposed
17 by this Article shall be based on the serviceman's cost price
18 of the tangible personal property transferred incident to the
19 completion of the contract.
20 With respect to gasohol, as defined in Section 5-40, the
21 tax imposed by this Article shall apply to 70% of the cost
22 price of property transferred as an incident to the sale of
23 service on or after January 1, 1990, and before July 1, 1999,
24 and to 100% of the cost price thereafter, except that from
25 July 1, 1997 to July 1, 1999, the rate shall be 85% for
26 gasohol sold in this State during the 12 months beginning
27 July 1 following any calendar year for which the Department
28 has determined that the percentages in Section 10 of the
29 Gasohol Fuels Tax Abatement Act have not been met.
30 At the election of any registered serviceman made for
31 each fiscal year, sales of service in which the aggregate
32 annual cost price of tangible personal property transferred
33 as an incident to the sales of service is less than 35%, or
-32- LRB9000671KDdvA
1 75% in the case of servicemen transferring prescription drugs
2 or servicemen engaged in graphic arts production, of the
3 aggregate annual total gross receipts from all sales of
4 service, the tax imposed by this Article shall be based on
5 the serviceman's cost price of the tangible personal property
6 transferred incident to the sale of those services.
7 The tax shall be imposed at the rate of 1% on food
8 prepared for immediate consumption and transferred incident
9 to a sale of service subject to this Article or Article 25 by
10 an entity licensed under the Hospital Licensing Act or the
11 Nursing Home Care Act. The tax shall also be imposed at the
12 rate of 1% on food for human consumption that is to be
13 consumed off the premises where it is sold (other than
14 alcoholic beverages, soft drinks, and food that has been
15 prepared for immediate consumption and is not otherwise
16 included in this paragraph) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use. For the purposes of this Section, the term "soft
22 drinks" means any complete, finished, ready-to-use,
23 non-alcoholic drink, whether carbonated or not, including but
24 not limited to soda water, cola, fruit juice, vegetable
25 juice, carbonated water, and all other preparations commonly
26 known as soft drinks of whatever kind or description that are
27 contained in any closed or sealed can, carton, or container,
28 regardless of size. "Soft drinks" does not include coffee,
29 tea, non-carbonated water, infant formula, milk or milk
30 products as defined in the Grade A Pasteurized Milk and Milk
31 Products Act, or drinks containing 50% or more natural fruit
32 or vegetable juice.
33 Notwithstanding any other provisions of this Code, "food
34 for human consumption that is to be consumed off the premises
-33- LRB9000671KDdvA
1 where it is sold" includes all food sold through a vending
2 machine, except soft drinks and food products that are
3 dispensed hot from a vending machine, regardless of the
4 location of the vending machine.
5 Section 20-20. Collection. The tax imposed by this
6 Article shall be paid to the Department by any serviceman
7 transferring tangible personal property as an incident to a
8 sale of service taxable under this Article. If a serviceman
9 has paid service occupation tax to his or her supplier based
10 upon the cost price of tangible personal property before
11 January 1, 1990, or in error on or after January 1, 1990, the
12 serviceman, without filing any formal claims with the
13 Department, shall be allowed to take credit against his or
14 her service occupation tax liability based upon the selling
15 price of that property transferred in the course of providing
16 service to the extent of the amount of the tax so paid.
17 If any serviceman collects an amount (however designated)
18 that purports to reimburse the serviceman for service
19 occupation tax liability measured by receipts or selling
20 prices that are not subject to service occupation tax, or if
21 any serviceman, in collecting an amount (however designated)
22 that purports to reimburse the serviceman for service
23 occupation tax liability measured by receipts or selling
24 prices that are subject to tax under this Article, collects
25 more from the purchaser than the serviceman's service
26 occupation tax liability in the transaction, the purchaser
27 shall have a legal right to claim a refund of that amount
28 from the serviceman. If, however, that amount is not refunded
29 to the purchaser by a serviceman for any reason, the supplier
30 or serviceman is liable to pay that amount to the Department.
31 This paragraph does not apply to an amount collected by the
32 supplier as service occupation tax, nor to an amount
33 collected by the serviceman as reimbursement for the
-34- LRB9000671KDdvA
1 serviceman's service occupation tax liability on receipts or
2 cost prices that are subject to tax under this Article, as
3 long as the collection is made in compliance with the tax
4 collection brackets prescribed by the Department in its rules
5 and regulations.
6 ARTICLE 25. IMPOSITION OF THE SERVICE USE TAX
7 Section 25-5. Tax imposed. A tax is imposed upon the
8 privilege of using in this State real or tangible personal
9 property acquired as an incident to the purchase of a service
10 from a serviceman, including computer software, and including
11 photographs, negatives, and positives that are the product of
12 photoprocessing, but not including products of
13 photoprocessing produced for use in motion pictures for
14 public commercial exhibition. The tax imposed in this Article
15 shall be known as the "service use tax".
16 Section 25-10. Tax additional. The tax imposed in this
17 Article shall be in addition to all other occupation or
18 privilege taxes imposed by the State of Illinois or by any
19 municipal corporation or political subdivision thereof.
20 Section 25-15. Rate of tax. Unless otherwise provided
21 in this Section, the tax imposed by this Article is at the
22 rate of 6.25% of the selling price of tangible personal
23 property transferred as an incident to the sale of service,
24 but, for the purpose of computing this tax, in no event shall
25 the selling price be less than the cost price of the property
26 to the serviceman.
27 With respect to gasohol, as defined in Section 5-40, the
28 tax imposed by this Article applies to 70% of the selling
29 price of property transferred as an incident to the sale of
30 service on or after January 1, 1990, and before July 1, 1999,
-35- LRB9000671KDdvA
1 and to 100% of the selling price thereafter, except that from
2 July 1, 1997 to July 1, 1999, the rate shall be 85% for
3 gasohol sold in this State during the 12 months beginning
4 July 1 following any calendar year for which the Department
5 has determined that the percentages in Section 10 of the
6 Gasohol Fuels Tax Abatement Act have not been met.
7 At the election of any registered serviceman made for
8 each fiscal year, sales of service in which the aggregate
9 annual cost price of tangible personal property transferred
10 as an incident to the sales of service is less than 35%, or
11 75% in the case of servicemen transferring prescription drugs
12 or servicemen engaged in graphic arts production, of the
13 aggregate annual total gross receipts from all sales of
14 service, the tax imposed by this Article shall be based on
15 the serviceman's cost price of the tangible personal property
16 transferred as an incident to the sale of those services.
17 The tax shall be imposed at the rate of 1% on food
18 prepared for immediate consumption and transferred incident
19 to a sale of service subject to this Article or Article 20
20 by an entity licensed under the Hospital Licensing Act or the
21 Nursing Home Care Act. The tax shall also be imposed at the
22 rate of 1% on food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption and is not otherwise
26 included in this paragraph) and prescription and
27 nonprescription medicines, drugs, medical appliances,
28 modifications to a motor vehicle for the purpose of rendering
29 it usable by a disabled person, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use. For the purposes of this Section, the term "soft drinks"
32 means any complete, finished, ready-to-use, non-alcoholic
33 drink, whether carbonated or not, including but not limited
34 to soda water, cola, fruit juice, vegetable juice, carbonated
-36- LRB9000671KDdvA
1 water, and all other preparations commonly known as soft
2 drinks of whatever kind or description that are contained in
3 any closed or sealed bottle, can, carton, or container,
4 regardless of size. "Soft drinks" does not include coffee,
5 tea, non-carbonated water, infant formula, milk or milk
6 products as defined in the Grade A Pasteurized Milk and Milk
7 Products Act, or drinks containing 50% or more natural fruit
8 or vegetable juice.
9 Notwithstanding any other provisions of this Code, "food
10 for human consumption that is to be consumed off the premises
11 where it is sold" includes all food sold through a vending
12 machine, except soft drinks and food products that are
13 dispensed hot from a vending machine, regardless of the
14 location of the vending machine.
15 If the property that is acquired from a serviceman is
16 acquired outside Illinois and used outside Illinois before
17 being brought to Illinois for use here and is taxable under
18 this Article, the "selling price" on which the tax is
19 computed shall be reduced by an amount that represents a
20 reasonable allowance for depreciation for the period of prior
21 out-of-state use.
22 Section 25-20. Collection. The tax imposed by this
23 Article shall be collected at the time of purchase in the
24 manner prescribed by the Department from the user by a
25 serviceman maintaining a place of business in this State or
26 by a serviceman authorized by the Department under Section
27 60-10 of this Code, and the tax shall be remitted to the
28 Department as provided in Sections 50-5 through 50-140 of
29 this Code.
30 The tax imposed by this Article that is not paid to a
31 serviceman under this Section shall be paid to the Department
32 directly by any person using the property within this State
33 as provided in Section 50-155 of this Code.
-37- LRB9000671KDdvA
1 If a serviceman collects service use tax measured by
2 receipts or selling prices that are not subject to service
3 use tax, or if a serviceman, in collecting service use tax
4 measured by receipts or selling prices that are subject to
5 tax under this Article, collects more from the purchaser than
6 the required amount of the service use tax on the
7 transaction, the purchaser shall have a legal right to claim
8 a refund of that amount from the serviceman. If, however,
9 that amount is not refunded to the purchaser for any reason,
10 the serviceman is liable to pay that amount to the
11 Department. This paragraph does not apply to an amount
12 collected by the serviceman as service use tax on receipts or
13 selling prices that are subject to tax under this Article as
14 long as the collection is made in compliance with the tax
15 collection brackets prescribed by the Department in its rules
16 and regulations.
17 Section 25-25. S. O. T. nontaxability. If the
18 serviceman would not be taxable under Article 20 of this Code
19 despite all elements of his sale of service occurring in
20 Illinois, then the tax imposed by this Article does not apply
21 to the use in this State of the property transferred as a
22 necessary incident to the sale of service.
23 Section 25-30. Method of stating tax. The tax imposed by
24 this Article may be stated as a distinct item separate and
25 apart from the selling price of the service, and shall be so
26 stated when requested by the buyer.
27 Section 25-35. Selling price of tangible personal
28 property transferred incident to a sale of service.
29 (a) Except as provided in subsection (b) of this
30 Section, the selling price of each item of tangible personal
31 property transferred incident to a sale of service may be
-38- LRB9000671KDdvA
1 stated as a distinct item by the serviceman to the service
2 customer and the tax imposed by this Article shall when
3 collected be stated as a distinct item separate and apart
4 from the selling price of the tangible personal property. If
5 the selling price of each item of tangible personal property
6 transferred incidental to a sale of service is not stated as
7 a separate item on the serviceman's billing to the service
8 customer, then the tax imposed by this Article shall be based
9 on 50% of the serviceman's entire billing to the service
10 customer.
11 (b) When a serviceman contracts to design, develop and
12 produce special order machinery or equipment, the tax imposed
13 by this Article shall be based on the serviceman's cost price
14 of the tangible personal property transferred incident to the
15 completion of the contract.
16 ARTICLE 30. EXEMPTIONS, EXCLUSIONS, AND CREDITS
17 Section 30-5. Pollution control facilities. The purchase,
18 employment and transfer of tangible personal property as
19 pollution control facilities, as defined in Section 5-75, is
20 not (i) a purchase, use or sale of tangible personal property
21 or (ii) a purchase, use, or sale of service, but shall be
22 deemed to be intangible personal property.
23 Section 30-10. Tangible personal property used or
24 consumed in pollution control facilities. For purposes of
25 the taxes imposed by this Code, subject to the provisions of
26 Section 35-55, or subject to the provisions of Section 5.5 of
27 the Illinois Enterprise Zone Act, all tangible personal
28 property to be used or consumed in the operation of pollution
29 control facilities, as defined in Section 5-75, within an
30 enterprise zone established pursuant to the Illinois
31 Enterprise Zone Act shall be exempt.
-39- LRB9000671KDdvA
1 Section 30-15. Low sulfur dioxide emission coal fueled
2 devices. The purchase, employment and transfer of such
3 tangible personal property as low sulfur dioxide emission
4 coal fueled devices, as defined in Section 5-60, is not a
5 purchase, use, or sale of tangible personal property.
6 Section 30-20. Designated tangible personal property;
7 enterprise zone; high impact business. Subject to the
8 provisions of Section 35-55, all tangible personal property
9 to be used or consumed within an enterprise zone established
10 pursuant to the Illinois Enterprise Zone Act or subject to
11 the provisions of Section 5.5 of the Illinois Enterprise Zone
12 Act, all tangible personal property to be used or consumed by
13 any high impact business, in the process of the manufacturing
14 or assembly of tangible personal property for wholesale or
15 retail sale or lease or in the process of graphic arts
16 production if used or consumed at a facility which is a
17 Department of Commerce and Community Affairs certified
18 business and located in a county of more than 4,000 persons
19 and less than 45,000 persons is exempt from the taxes imposed
20 by this Code. This exemption includes repair and replacement
21 parts for machinery and equipment used primarily in the
22 process of manufacturing or assembling tangible personal
23 property or in the process of graphic arts production if used
24 or consumed at a facility which is a Department of Commerce
25 and Community Affairs certified business and located in a
26 county of more than 4,000 persons and less than 45,000
27 persons for wholesale or retail sale, or lease, and
28 equipment, manufacturing or graphic arts fuels, material and
29 supplies for the maintenance, repair or operation of such
30 manufacturing or assembling or graphic arts machinery or
31 equipment.
32 Section 30-25. Exemption - Machinery or Equipment used
-40- LRB9000671KDdvA
1 in the operation of high impact service facilities. Subject
2 to the provisions of Section 35-85 of this Code, machinery or
3 equipment used in the operation of a high impact service
4 facility, as defined in Section 35-85 of this Code, located
5 within an enterprise zone established pursuant to the
6 Illinois Enterprise Zone Act shall be exempt from the taxes
7 imposed by this Code. Machinery and equipment, new and
8 replacement, shall include, but not be limited to: (i) motor
9 driven heavy equipment not considered rolling stock which is
10 used for the purpose of transporting parcels, machinery, or
11 equipment, or trailers used for the shipment of parcels, and
12 equipment used to maintain and provide in-house services,
13 within the confines of the facility, and (ii) automated
14 machinery and equipment used for the purposes of transporting
15 parcels within the facility, along with all components,
16 parts, pieces, and computer software or hardware contained in
17 the electronic control systems related thereto. The
18 Department of Revenue shall promulgate such rules and
19 regulations as necessary to further define machinery and
20 equipment eligible for exemption in a high impact service
21 facility.
22 Section 30-30. High impact; building materials.
23 Beginning January 1, 1995, each retailer who makes a sale of
24 building materials that will be incorporated into a high
25 impact business location as designated by the Department of
26 Commerce and Community Affairs under Section 5.5 of the
27 Illinois Enterprise Zone Act may deduct receipts from such
28 sales when calculating only the 6.25% State rate of taxes
29 imposed by this Code. Beginning June 30, 1995, a retailer
30 may also deduct receipts from such sales when calculating any
31 applicable local taxes. However, until June 30, 1995, a
32 retailer may file claims for credit or refund to recover the
33 amount of any applicable local tax paid on such sales. No
-41- LRB9000671KDdvA
1 retailer who is eligible for the deduction or credit under
2 Section 35-90 of this Code for making a sale of building
3 materials to be incorporated into real estate in an
4 enterprise zone by rehabilitation, remodeling or new
5 construction shall be eligible for the deduction or credit
6 authorized under this Section.
7 Section 30-35. Machinery and equipment used in aircraft
8 maintenance facility. Subject to the provisions of Section
9 35-80 of this Code, machinery and equipment used in the
10 operation of an aircraft maintenance facility as defined in
11 Section 35-80, located within an enterprise zone shall be
12 exempt from the taxes imposed by this Code. The machinery
13 and equipment exempted by this Section is limited to
14 machinery and equipment used primarily to maintain, rebuild
15 or repair aircraft used as rolling stock moving in interstate
16 commerce for hire by the operator of the facility. The
17 Department of Revenue shall promulgate any rules and
18 regulations necessary to further define machinery and
19 equipment eligible for exemption in an aircraft maintenance
20 facility.
21 Section 30-40. Tangible personal property used or
22 consumed in aircraft maintenance facility. Subject to the
23 provisions of Section 35-80, all tangible personal property
24 to be used or consumed, within an enterprise zone established
25 pursuant to the Illinois Enterprise Zone Act, by any aircraft
26 maintenance facility, directly in the process of maintaining,
27 rebuilding or repairing aircraft is exempt from the taxes
28 imposed by this Code. The exemption includes repair and
29 replacement parts for machinery and equipment used primarily
30 in the process of maintaining, rebuilding or repairing
31 aircraft, and also includes equipment, fuels, material and
32 supplies for the maintenance, repair or operation of such
-42- LRB9000671KDdvA
1 machinery or equipment.
2 Section 30-45. Personal property used in infrastructure
3 repairs. For purposes of the taxes imposed by this Code,
4 beginning with taxable years ending on or after December 31,
5 1995 and ending with taxable years ending on or before
6 December 31, 2004, personal property that is used in the
7 performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and retention
12 facilities, and sewage treatment facilities, resulting from a
13 State or federally declared disaster in Illinois or bordering
14 Illinois when such repairs are initiated on facilities
15 located in the declared disaster area within 6 months after
16 the disaster is exempt.
17 Section 30-50. Horses. For purposes of the taxes
18 imposed by this Code, horses, or interests in horses,
19 registered with and meeting the requirements of any of the
20 Arabian Horse Club Registry of America, Appaloosa Horse Club,
21 American Quarter Horse Association, United States Trotting
22 Association, or Jockey Club, as appropriate, used for
23 purposes of breeding or racing for prizes are exempt.
24 Section 30-55. Semen. For purposes of the taxes imposed
25 by this Code, semen used for artificial insemination of
26 livestock for direct agricultural production is exempt.
27 Section 30-60. Farm chemicals. For purposes of the
28 retailers' occupation tax and the use tax, farm chemicals are
29 exempt.
-43- LRB9000671KDdvA
1 Section 30-65. Farm machinery and equipment. For
2 purposes of the taxes imposed by this Code, farm machinery
3 and equipment, both new and used, including that manufactured
4 on special order, certified by the purchaser to be used
5 primarily for production agriculture or State or federal
6 agricultural programs, including individual replacement parts
7 for the machinery and equipment, and including machinery and
8 equipment purchased for lease, but excluding motor vehicles
9 required to be registered under the Illinois Vehicle Code is
10 exempt.
11 Section 30-70. Distillation machinery and equipment.
12 (a) For purposes of the retailers' occupation tax and
13 the use tax, distillation machinery and equipment, sold as a
14 unit or kit, assembled or installed by the retailer,
15 certified by the user to be used only for the production of
16 ethyl alcohol that will be used for consumption as motor fuel
17 or as a component of motor fuel for the personal use of the
18 user, and not subject to sale or resale is exempt.
19 (b) For purposes of the service occupation tax and the
20 service use tax, "sale of service" shall not include a sale
21 or transfer of distillation machinery and equipment, sold as
22 a unit or kit and assembled or installed by the retailer,
23 which machinery and equipment is certified by the user to be
24 used only for the production of ethyl alcohol that will be
25 used for consumption as motor fuel or as a component of motor
26 fuel for the personal use of such user and not subject to
27 sale or resale.
28 Section 30-75. Oil field equipment. For purposes of the
29 taxes imposed by this Code, oil field exploration, drilling,
30 and production equipment, including (i) rigs and parts of
31 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
32 pipe and tubular goods, including casing and drill strings,
-44- LRB9000671KDdvA
1 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2 lines, (v) any individual replacement part for oil field
3 exploration, drilling, and production equipment, and (vi)
4 machinery and equipment purchased for lease; but excluding
5 motor vehicles required to be registered under the Illinois
6 Vehicle Code is exempt.
7 Section 30-80. Coal exploration equipment. For purposes
8 of the taxes imposed by this Code, coal exploration, mining,
9 offhighway hauling, processing, maintenance, and reclamation
10 equipment, including replacement parts and equipment, and
11 including equipment purchased for lease, but excluding motor
12 vehicles required to be registered under the Illinois Vehicle
13 Code is exempt.
14 Section 30-85. Photoprocessing machinery and equipment.
15 For purposes of the taxes imposed by this Code,
16 photoprocessing machinery and equipment, including repair and
17 replacement parts, both new and used, including that
18 manufactured on special order, certified by the purchaser to
19 be used primarily for photoprocessing, and including
20 photoprocessing machinery and equipment purchased for lease
21 is exempt.
22 Section 30-90. Graphic arts machinery and equipment. For
23 purposes of the taxes imposed by this Code, graphic arts
24 machinery and equipment, including repair and replacement
25 parts, both new and used, and including that manufactured on
26 special order or purchased for lease, certified by the
27 purchaser to be used primarily for graphic arts production is
28 exempt.
29 Section 30-95. Manufacturing and assembling machinery
30 and equipment.
-45- LRB9000671KDdvA
1 (a) For purposes of the retailers' occupation tax and
2 the use tax, machinery and equipment that will be used by the
3 purchaser, or a lessee of the purchaser, primarily in the
4 process of manufacturing or assembling tangible personal
5 property for wholesale or retail sale or lease, whether the
6 sale or lease is made directly by the manufacturer or by some
7 other person, whether the materials used in the process are
8 owned by the manufacturer or some other person, or whether
9 the sale or lease is made apart from or as an incident to the
10 seller's engaging in the service occupation of producing
11 machines, tools, dies, jigs, patterns, gauges, or other
12 similar items of no commercial value on special order for a
13 particular purchaser is exempt.
14 (b) For purposes of the service occupation tax and
15 service use tax, "sale of service" shall not include a sale
16 or transfer of machinery and equipment used primarily in the
17 process of the manufacturing or assembling, either in an
18 existing, an expanded or a new manufacturing facility, of
19 tangible personal property for wholesale or retail sale or
20 lease, whether such sale or lease is made directly by the
21 manufacturer or by some other person, whether the materials
22 used in the process are owned by the manufacturer or some
23 other person, or whether such sale or lease is made apart
24 from or as an incident to the seller's engaging in a service
25 occupation and the applicable tax is a service use tax or
26 service occupation tax, rather than use tax or retailers'
27 occupation tax.
28 Section 30-100. Manufacturing and assembling exemption.
29 (a) For purposes of the retailers' occupation tax and
30 the use tax, the manufacturing and assembling machinery and
31 equipment exemption includes machinery and equipment that
32 replaces machinery and equipment in an existing manufacturing
33 facility as well as machinery and equipment that are for use
-46- LRB9000671KDdvA
1 in an expanded or new manufacturing facility. The
2 manufacturing and assembling machinery and equipment
3 exemption includes the sale of materials to a purchaser who
4 produces exempted types of machinery, equipment, or tools and
5 who rents or leases that machinery, equipment, or tools to a
6 manufacturer of tangible personal property. This exemption
7 also includes the sale of materials to a purchaser who
8 manufactures those materials into an exempted type of
9 machinery, equipment, or tools that the purchaser uses
10 himself or herself in the manufacturing of tangible personal
11 property. For purposes of the use tax, this exemption also
12 includes the sale of exempted types of machinery or equipment
13 to a purchaser who is not the manufacturer, but who rents or
14 leases the use of the property to a manufacturer.
15 (b) For purposes of this Code, the machinery and
16 equipment exemption also includes machinery and equipment
17 used in the general maintenance or repair of exempt machinery
18 and equipment or for in-house manufacture of exempt machinery
19 and equipment. For the purposes of this exemption, terms have
20 the following meanings:
21 (1) "Manufacturing process" means the production of
22 an article of tangible personal property, whether the
23 article is a finished product or an article for use in
24 the process of manufacturing or assembling a different
25 article of tangible personal property, by a procedure
26 commonly regarded as manufacturing, processing,
27 fabricating, or refining that changes some existing
28 material or materials into a material with a different
29 form, use, or name. In relation to a recognized
30 integrated business composed of a series of operations
31 that collectively constitute manufacturing, or
32 individually constitute manufacturing operations, the
33 manufacturing process commences with the first operation
34 or stage of production in the series and does not end
-47- LRB9000671KDdvA
1 until the completion of the final product in the last
2 operation or stage of production in the series. For
3 purposes of this exemption, photoprocessing is a
4 manufacturing process of tangible personal property for
5 wholesale or retail sale.
6 (2) "Assembling process" means the production of an
7 article of tangible personal property, whether the
8 article is a finished product or an article for use in
9 the process of manufacturing or assembling a different
10 article of tangible personal property, by the combination
11 of existing materials in a manner commonly regarded as
12 assembling that results in an article or material of a
13 different form, use, or name.
14 (3) "Machinery" means major mechanical machines or
15 major components of those machines contributing to a
16 manufacturing or assembling process.
17 (4) "Equipment" includes an independent device or
18 tool separate from machinery but essential to an
19 integrated manufacturing or assembly process; including
20 computers used primarily in operating exempt machinery
21 and equipment in a computer assisted design, computer
22 assisted manufacturing (CAD/CAM) system; any subunit or
23 assembly comprising a component of any machinery or
24 auxiliary, adjunct or attachment parts of machinery, such
25 as tools, dies, jigs, fixtures, patterns, and molds; and
26 any parts that require periodic replacement in the course
27 of normal operation; but does not include hand tools.
28 (c) For purposes of this Code, the purchaser of the
29 machinery and equipment who has an active resale registration
30 number shall furnish that number to the seller at the time of
31 purchase. For purposes of the retailers' occupation tax and
32 the service occupation tax, a purchaser of the machinery,
33 equipment, and tools without an active resale registration
34 number shall furnish to the seller a certificate of exemption
-48- LRB9000671KDdvA
1 for each transaction stating facts establishing the exemption
2 for that transaction. For purposes of the use tax and the
3 service use tax, a user of the machinery, equipment, or tools
4 without an active resale registration number shall prepare a
5 certificate of exemption for each transaction stating facts
6 establishing the exemption for that transaction. That
7 certificate shall be available to the Department for
8 inspection or audit. The Department shall prescribe the form
9 of the certificate. Informal rulings, opinions, or letters
10 issued by the Department in response to an inquiry or request
11 for an opinion from any person regarding the coverage and
12 applicability of this exemption to specific devices shall be
13 published, maintained as a public record, and made available
14 for public inspection and copying. If the informal ruling,
15 opinion, or letter contains trade secrets or other
16 confidential information, where possible, the Department
17 shall delete that information before publication. Whenever
18 informal rulings, opinions, or letters contain a policy of
19 general applicability, the Department shall formulate and
20 adopt that policy as a rule in accordance with the Illinois
21 Administrative Procedure Act.
22 Section 30-105. Motor vehicle used for renting. For
23 purposes of the retailers' occupation tax and the use tax, a
24 motor vehicle of the first division, a motor vehicle of the
25 second division that is a self-contained motor vehicle
26 designed or permanently converted to provide living quarters
27 for recreational, camping, or travel use, with direct walk
28 through access to the living quarters from the driver's seat,
29 or a motor vehicle of the second division that is of the van
30 configuration designed for the transportation of not less
31 than 7 nor more than 16 passengers, as defined in Section
32 1-146 of the Illinois Vehicle Code, that is used for
33 automobile renting, as defined in the Automobile Renting
-49- LRB9000671KDdvA
1 Occupation and Use Tax Act is exempt.
2 Section 30-110. Passenger car subject to replacement
3 vehicle tax. For purposes of the retailers' occupation tax
4 and the use tax, proceeds of that portion of the selling
5 price of a passenger car the sale of which is subject to the
6 Replacement Vehicle Tax are exempt.
7 Section 30-115. Motor vehicle sold to a non-resident.
8 For purposes of the retailers' occupation tax and the use
9 tax, a motor vehicle sold in this State to a nonresident even
10 though the motor vehicle is delivered to the nonresident in
11 this State, if the motor vehicle is not to be titled in this
12 State, and if a driveaway decal permit is issued to the motor
13 vehicle as provided in Section 3-603 of the Illinois Vehicle
14 Code or if the nonresident purchaser has vehicle registration
15 plates to transfer to the motor vehicle upon returning to his
16 or her home state is exempt. The issuance of the driveaway
17 decal permit or having the out-of-state registration plates
18 to be transferred is prima facie evidence that the motor
19 vehicle will not be titled in this State.
20 Section 30-120. Petroleum products. For purposes of the
21 retailers' occupation tax, petroleum products sold to a
22 purchaser if the seller is prohibited by federal law from
23 charging tax to the purchaser are exempt.
24 Section 30-125. Petroleum products sold to air carrier.
25 For purposes of the taxes imposed by this Code, fuel and
26 petroleum products sold to or used by an air common carrier,
27 certified by the carrier to be used for consumption,
28 shipment, or storage in the conduct of its business as an air
29 common carrier, for a flight destined for or returning from a
30 location or locations outside the United States without
-50- LRB9000671KDdvA
1 regard to previous or subsequent domestic stopovers are
2 exempt.
3 Section 30-130. Fuel consumed by ships. For purposes of
4 the retailers' occupation tax, fuel consumed or used in the
5 operation of ships, barges, or vessels that are used
6 primarily in or for the transportation of property or the
7 conveyance of persons for hire on rivers bordering on this
8 State if the fuel is delivered by the seller to the
9 purchaser's barge, ship, or vessel while it is afloat upon
10 that bordering river is exempt.
11 Section 30-135. Tangible personal property sold to rail
12 common carrier.
13 (a) For purposes of the retailers' occupation tax and
14 the use tax, tangible personal property sold to a common
15 carrier by rail that receives the physical possession of the
16 property in Illinois and that transports the property, or
17 shares with another common carrier in the transportation of
18 the property, out of Illinois on a standard uniform bill of
19 lading showing the seller of the property as the shipper or
20 consignor of the property to a destination outside Illinois,
21 for use outside Illinois is exempt.
22 (b) For purposes of the service occupation tax and the
23 service use tax, "sale of service" shall not include the
24 repairing, reconditioning or remodeling, for a common carrier
25 by rail, of tangible personal property which belongs to such
26 carrier for hire, and as to which such carrier receives the
27 physical possession of the repaired, reconditioned or
28 remodeled item of tangible personal property in Illinois, and
29 which such carrier transports, or shares with another common
30 carrier in the transportation of such property, out of
31 Illinois on a standard uniform bill of lading showing the
32 person who repaired, reconditioned or remodeled the property
-51- LRB9000671KDdvA
1 as the shipper or consignor of such property to a destination
2 outside Illinois, for use outside Illinois.
3 (c) For purposes of the service occupation tax and the
4 service use tax, "sale of service" shall not include a sale
5 or transfer of tangible personal property which is produced
6 by the seller thereof on special order in such a way as to
7 have made the applicable tax the service occupation tax or
8 the service use tax, rather than the retailers' occupation
9 tax or the use tax, for an interstate carrier by rail which
10 receives the physical possession of such property in
11 Illinois, and which transports such property, or shares with
12 another common carrier in the transportation of such
13 property, out of Illinois on a standard uniform bill of
14 lading showing the seller of the property as the shipper or
15 consignor of such property to a destination outside Illinois,
16 for use outside Illinois.
17 Section 30-140. Rolling stock; personal property.
18 (a) For purposes of the retailers' occupation tax and
19 the use tax, personal property sold to an interstate carrier
20 for hire for use as rolling stock moving in interstate
21 commerce or to lessors under leases of one year or longer
22 executed or in effect at the time of purchase by interstate
23 carriers for hire for use as rolling stock moving in
24 interstate commerce as long as so used by interstate carriers
25 for hire and equipment operated by a telecommunications
26 provider, licensed as a common carrier by the Federal
27 Communications Commission, which is permanently installed in
28 or affixed to aircraft moving in interstate commerce is
29 exempt.
30 (b) For purposes of the service occupation tax and the
31 service use tax, "sale of service" shall not include a sale
32 or transfer of tangible personal property as an incident to
33 the rendering of service for interstate carriers for hire for
-52- LRB9000671KDdvA
1 use as rolling stock moving in interstate commerce or lessors
2 under leases of one year or longer, executed or in effect at
3 the time of purchase, to interstate carriers for hire for use
4 as rolling stock moving in interstate commerce as long as so
5 used by such interstate carriers for hire, and equipment
6 operated by a telecommunications provider, licensed as a
7 common carrier by the Federal Communications Commission,
8 which is permanently installed in or affixed to aircraft
9 moving in interstate commerce.
10 Section 30-145. Rolling stock; proceeds from sales.
11 (a) For purposes of the retailers' occupation tax and
12 the use tax, proceeds from sales to owners, lessors, or
13 shippers of tangible personal property that is utilized by
14 interstate carriers for hire for use as rolling stock moving
15 in interstate commerce as long as so used by the interstate
16 carriers for hire, and equipment operated by a
17 telecommunications provider, licensed as a common carrier by
18 the Federal Communications Commission, which is permanently
19 installed in or affixed to aircraft moving in interstate
20 commerce are exempt.
21 (b) For purposes of the service occupation tax and the
22 service use tax, "sale of service" shall not include a sale
23 or transfer of tangible personal property as an incident to
24 the rendering of service for owners, lessors or shippers of
25 tangible personal property which is utilized by interstate
26 carriers for hire for use as rolling stock moving in
27 interstate commerce as long as so used by such interstate
28 carriers for hire, and equipment operated by a
29 telecommunications provider, licensed as a common carrier by
30 the Federal Communications Commission, which is permanently
31 installed in or affixed to aircraft moving in interstate
32 commerce.
-53- LRB9000671KDdvA
1 Section 30-150. Rolling stock exemption. The rolling
2 stock exemption applies to rolling stock used by an
3 interstate carrier for hire, even just between points in
4 Illinois, if the rolling stock transports, for hire, persons
5 whose journeys or property whose shipments originate or
6 terminate outside Illinois.
7 Section 30-155. Personal property sold by students. For
8 purposes of the taxes imposed by this Code, personal property
9 sold by or purchased from a teacher-sponsored student
10 organization affiliated with an elementary or secondary
11 school located in Illinois is exempt.
12 Section 30-160. Personal property sold to a
13 not-for-profit music or dramatic arts organization. For
14 purposes of the taxes imposed by this Code, personal property
15 sold to or purchased by a not-for-profit music or dramatic
16 arts organization that establishes, by proof required by the
17 Department by rule, that it has received an exemption under
18 Section 501(c)(3) of the Internal Revenue Code and that is
19 organized and operated for the presentation of live public
20 performances of musical or theatrical works on a regular
21 basis is exempt.
22 Section 30-165. Personal property sold for the benefit
23 of persons 65 years of age or older. For purposes of the
24 taxes imposed by this Code, personal property sold by or
25 purchased from a corporation, society, association,
26 foundation, institution, or organization, other than a
27 limited liability company, that is organized and operated as
28 a not-for-profit service enterprise for the benefit of
29 persons 65 years of age or older if the personal property was
30 not purchased by the enterprise for the purpose of resale by
31 the enterprise is exempt.
-54- LRB9000671KDdvA
1 Section 30-170. Personal property sold to charitable,
2 religious, or educational organizations.
3 (a) For purposes of the retailers' occupation tax and
4 the use tax, personal property sold to or purchased by a
5 governmental body, to a corporation, society, association,
6 foundation, or institution organized and operated exclusively
7 for charitable, religious, or educational purposes, or to a
8 not-for-profit corporation, society, association, foundation,
9 institution, or organization that has no compensated officers
10 or employees and that is organized and operated primarily for
11 the recreation of persons 55 years of age or older is exempt.
12 A limited liability company may qualify for the exemption
13 under this subsection only if the limited liability company
14 is organized and operated exclusively for educational
15 purposes. On and after July 1, 1987, however, no entity
16 otherwise eligible for this exemption shall make tax-free
17 purchases unless it has an active exemption identification
18 number issued by the Department in accordance with Section
19 35-60 of this Code.
20 (b) For purposes of the service occupation tax and the
21 service use tax, "sale of service" shall not include, except
22 as hereinafter provided, a sale or transfer of tangible
23 personal property as an incident to the rendering of service
24 for or by any governmental body or for or by any corporation,
25 society, association, foundation or institution organized and
26 operated exclusively for charitable, religious or educational
27 purposes or any not-for-profit corporation, society,
28 association, foundation, institution or organization which
29 has no compensated officers or employees and which is
30 organized and operated primarily for the recreation of
31 persons 55 years of age or older. A limited liability
32 company may qualify for the exemption under this subsection
33 only if the limited liability company is organized and
34 operated exclusively for educational purposes. On and after
-55- LRB9000671KDdvA
1 July 1, 1987, however, no entity otherwise eligible for the
2 exemption under this subsection shall make tax free purchases
3 unless it has an active exemption identification number
4 issued by the Department.
5 Section 30-175. County fair association.
6 (a) For purposes of the retailers' occupation tax,
7 personal property sold to an Illinois county fair association
8 for use in conducting, operating, or promoting the county
9 fair is exempt.
10 (b) For purposes of the use tax, the service occupation
11 tax, and the service use tax, personal property purchased by
12 a not-for-profit Illinois county fair association for use in
13 conducting, operating, or promoting the county fair is
14 exempt.
15 Section 30-180. Personal property donated for disaster
16 relief. For purposes of the taxes imposed by this Code,
17 beginning with taxable years ending on or after December 31,
18 1995 and ending with taxable years ending on or before
19 December 31, 2004, personal property that is donated for
20 disaster relief to be used in a State or federally declared
21 disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department, in accordance with
26 Section 35-60, that assists victims of the disaster who
27 reside within the declared disaster area is exempt.
28 Section 30-185. Computers for hospitals.
29 (a) For purposes of the taxes imposed by this Code,
30 computers and communications equipment utilized for any
31 hospital purpose and equipment used in the diagnosis,
-56- LRB9000671KDdvA
1 analysis, or treatment of hospital patients sold to a lessor
2 who leases the equipment, under a lease of one year or longer
3 executed or in effect, for purposes of the retailers'
4 occupation tax and the service occupation tax, at the time of
5 the purchase, or, for purposes of the use tax and the service
6 use tax, at the time the lessor would otherwise be subject to
7 the tax imposed by Article 15 or Article 25, to a hospital
8 that has been issued an active tax exemption identification
9 number by the Department under Section 35-60 are exempt.
10 (b) For purposes of the use tax and the service use tax,
11 if the equipment is leased in a manner that does not qualify
12 for this exemption or is used in any other non-exempt manner,
13 the lessor shall be liable for the tax imposed under Article
14 15 or Article 25, as the case may be, based on the fair
15 market value of the property at the time the non-qualifying
16 use occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by Article 15 or Article 25, as
19 the case may be, if the tax has not been paid by the lessor.
20 If a lessor improperly collects any such amount from the
21 lessee, the lessee shall have a legal right to claim a refund
22 of that amount from the lessor. If, however, that amount is
23 not refunded to the lessee for any reason, the lessor is
24 liable to pay that amount to the Department.
25 Section 30-190. Personal property sold to lessor for
26 lease to governmental body.
27 (a) For purposes of the taxes imposed by this Code,
28 personal property sold to a lessor who leases the property,
29 under a lease of one year or longer executed or in effect,
30 for purposes of the retailers' occupation tax and the service
31 occupation tax, at the time of the purchase, or, for purposes
32 of the use tax and the service use tax, at the time the
33 lessor would otherwise be subject to the tax imposed by
-57- LRB9000671KDdvA
1 Article 15 or Article 25, to a governmental body that has
2 been issued an active tax exemption identification number by
3 the Department under Section 35-60 is exempt.
4 (b) For purposes of the use tax and the service use tax,
5 if the property is leased in a manner that does not qualify
6 for this exemption or used in any other non-exempt manner,
7 the lessor shall be liable for the tax imposed under Article
8 15 or Article 25, as the case may be, based on the fair
9 market value of the property at the time the non-qualifying
10 use occurs. No lessor shall collect or attempt to collect an
11 amount (however designated) that purports to reimburse that
12 lessor for the tax imposed by Article 15 or Article 25, as
13 the case may be, if the tax has not been paid by the lessor.
14 If a lessor improperly collects any such amount from the
15 lessee, the lessee shall have a legal right to claim a refund
16 of that amount from the lessor. If, however, that amount is
17 not refunded to the lessee for any reason, the lessor is
18 liable to pay that amount to the Department.
19 Section 30-195. Food and drugs sold by not-for-profit
20 organizations; exemption.
21 (a) The Department shall not collect the 1% tax imposed
22 on food for human consumption that is to be consumed off the
23 premises where it is sold (other than alcoholic beverages,
24 soft drinks, and food that has been prepared for immediate
25 consumption) and prescription and nonprescription medicines,
26 drugs, medical appliances, and insulin, urine testing
27 materials, syringes, and needles used by diabetics, for human
28 use from any not-for-profit organization, that sells food in
29 a food distribution program at a price below the retail cost
30 of the food to purchasers who, as a condition of
31 participation in the program, are required to perform
32 community service, located in a county or municipality that
33 notifies the Department, in writing, that the county or
-58- LRB9000671KDdvA
1 municipality does not want the tax to be collected from any
2 of such organizations located in the county or municipality.
3 (b) For purposes of the service occupation tax, food for
4 human consumption that is to be consumed off the premises
5 where it is sold (other than alcoholic beverages, soft drinks
6 and food that has been prepared for immediate consumption)
7 and prescription and nonprescription medicines, drugs,
8 medical appliances, and insulin, urine testing materials,
9 syringes, and needles used by diabetics, for human use, when
10 purchased for use by a person receiving medical assistance
11 under Article 5 of the Illinois Public Aid Code who resides
12 in a licensed long-term care facility, as defined in the
13 Nursing Home Care Act is exempt.
14 Section 30-200. Mandatory service charge. For purposes
15 of the taxes imposed by this Code, proceeds of mandatory
16 service charges separately stated on customers' bills for the
17 purchase and consumption of food and beverages, to the extent
18 that the proceeds of the service charge are in fact turned
19 over as tips or as a substitute for tips to the employees who
20 participate directly in preparing, serving, hosting or
21 cleaning up the food or beverage function with respect to
22 which the service charge is imposed are exempt.
23 Section 30-205. Legal tender. For purposes of the taxes
24 imposed by this Code, legal tender, currency, medallions, or
25 gold or silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion are exempt.
28 Section 30-210. Florist.
29 (a) For purposes of the retailers' occupation tax, a
30 transaction in which the purchase order is received by a
31 florist who is located outside Illinois, but who has a
-59- LRB9000671KDdvA
1 florist located in Illinois deliver the property to the
2 purchaser or the purchaser's donee in Illinois is exempt.
3 (b) For purposes of the use tax, personal property
4 delivered to a purchaser or purchaser's donee inside Illinois
5 when the purchase order for that personal property was
6 received by a florist located outside Illinois who has a
7 florist located inside Illinois deliver the personal property
8 is exempt.
9 Section 30-215. Interstate commerce exemption. No tax
10 is imposed by Article 10 or Article 20 upon the privilege of
11 engaging in a business in interstate commerce or otherwise,
12 when the business may not, under the Constitution and
13 statutes of the United States, be made the subject of
14 taxation by this State.
15 Section 30-220. Multistate exemption.
16 (a) To prevent actual or likely multistate taxation, the
17 taxes imposed by Article 15 and Article 25 do not apply to
18 the use of tangible personal property in this State under the
19 following circumstances:
20 (1) The use, in this State, of tangible personal
21 property acquired outside this State by a nonresident
22 individual and brought into this State by the individual
23 for his or her own use while temporarily within this
24 State or while passing through this State.
25 (2) The use, in this State, of tangible personal
26 property that is acquired outside this State and caused
27 to be brought into this State by a person who has already
28 paid a tax in another state in respect to the sale,
29 purchase, or use of that property, to the extent of the
30 amount of the tax properly due and paid in the other
31 state.
32 (3) The temporary storage, in this State, of
-60- LRB9000671KDdvA
1 tangible personal property that is acquired outside this
2 State and that, after being brought into this State and
3 stored here temporarily, is used solely outside this
4 State or is physically attached to or incorporated into
5 other tangible personal property that is used solely
6 outside this State, or is altered by converting,
7 fabricating, manufacturing, printing, processing, or
8 shaping, and, as altered, is used solely outside this
9 State.
10 (b) To prevent actual or likely multistate taxation, the
11 tax imposed by Article 15 does not apply to the temporary
12 storage in this State of building materials and fixtures that
13 are acquired either in this State or outside this State by an
14 Illinois registered combination retailer and construction
15 contractor, and that the purchaser thereafter uses outside
16 this State by incorporating that property into real estate
17 located outside this State.
18 (c) To prevent actual or likely multistate taxation, the
19 tax imposed by Article 25 does not apply to the use, in this
20 State, of property that is acquired outside this State and
21 that is moved into this State for use as rolling stock moving
22 in interstate commerce.
23 Section 30-225. Property acquired by nonresident. The
24 taxes imposed by Article 15 and Article 25 do not apply to
25 the use, in this State, of tangible personal property that is
26 acquired outside this State by a nonresident individual who
27 then brings the property to this State for use here and who
28 has used the property outside this State for at least 3
29 months before bringing the property to this State.
30 Where a business that is not operated in Illinois, but is
31 operated in another State, is moved to Illinois or opens an
32 office, plant, or other business facility in Illinois, that
33 business shall not be taxed on its use, in Illinois, of used
-61- LRB9000671KDdvA
1 tangible personal property, other than, for purposes of the
2 use tax only, items of tangible personal property that must
3 be titled or registered with the State of Illinois or whose
4 registration with the United States Government must be filed
5 with the State of Illinois, that the business bought outside
6 Illinois and used outside Illinois in the operation of the
7 business for at least 3 months before moving the used
8 property to Illinois for use in this State.
9 Section 30-230. Manufacturer's Purchase Credit. For
10 purposes of the use tax and the service use tax, for
11 purchases of machinery and equipment made on and after
12 January 1, 1995, a purchaser of manufacturing machinery and
13 equipment that qualifies for the exemption provided by
14 Section 30-95 of this Code earns a credit in an amount equal
15 to a fixed percentage of the tax which would have been
16 incurred under Article 15 or 25 of this Code on those
17 purchases. For purchases of graphic arts machinery and
18 equipment made on or after July 1, 1996, a purchaser of
19 graphic arts machinery and equipment that qualifies for the
20 exemption provided by Section 30-90 of this Code earns a
21 credit in an amount equal to a fixed percentage of the tax
22 that would have been incurred under Article 15 or 25 of this
23 Code on those purchases. The credit earned for purchases of
24 manufacturing machinery and equipment or graphic arts
25 machinery and equipment shall be referred to as the
26 Manufacturer's Purchase Credit. A graphic arts producer is a
27 person engaged in graphic arts production as defined in
28 Section 5-45 of this Code. Beginning July 1, 1996, all
29 references in this Section to manufacturers or manufacturing
30 shall also be deemed to refer to graphic arts producers or
31 graphic arts production.
32 The amount of credit shall be a percentage of the tax
33 that would have been incurred on the purchase of
-62- LRB9000671KDdvA
1 manufacturing machinery and equipment or graphic arts
2 machinery and equipment if the exemptions provided by Section
3 30-90 or 30-95 of this Code had not been applicable. The
4 percentage shall be as follows:
5 (1) 15% for purchases made on or before June 30,
6 1995.
7 (2) 25% for purchases made after June 30, 1995, and
8 on or before June 30, 1996.
9 (3) 40% for purchases made after June 30, 1996, and
10 on or before June 30, 1997.
11 (4) 50% for purchases made on or after July 1,
12 1997.
13 A purchaser of production related tangible personal
14 property desiring to use the Manufacturer's Purchase Credit
15 shall certify to the seller that the purchaser is satisfying
16 all or part of the liability under Article 15 or Article 25
17 of this Code that is due on the purchase of the production
18 related tangible personal property by use of Manufacturer's
19 Purchase Credit. The Manufacturer's Purchase Credit
20 certification must be dated and shall include the name and
21 address of the purchaser, the purchaser's registration
22 number, if registered, the credit being applied, and a
23 statement that the State use tax or service use tax liability
24 is being satisfied with the manufacturer's or graphic arts
25 producer's accumulated purchase credit. Certification may be
26 incorporated into the manufacturer's or graphic arts
27 producer's purchase order. Manufacturer's Purchase Credit
28 certification by the manufacturer or graphic arts producer
29 may be used to satisfy the retailer's or serviceman's
30 liability under Article 10 or Article 20 of this Code for the
31 credit claimed, not to exceed 6.25% of the receipts subject
32 to tax from a qualifying purchase, but only if the retailer
33 or serviceman reports the Manufacturer's Purchase Credit
34 claimed as required by the Department. The Manufacturer's
-63- LRB9000671KDdvA
1 Purchase Credit earned by purchase of exempt manufacturing
2 machinery and equipment or graphic arts machinery and
3 equipment is a non-transferable credit. A manufacturer or
4 graphic arts producer that enters into a contract involving
5 the installation of tangible personal property into real
6 estate within a manufacturing or graphic arts production
7 facility may authorize a construction contractor to utilize
8 credit accumulated by the manufacturer or graphic arts
9 producer to purchase the tangible personal property. A
10 manufacturer or graphic arts producer intending to use
11 accumulated credit to purchase such tangible personal
12 property shall execute a written contract authorizing the
13 contractor to utilize a specified dollar amount of credit.
14 The contractor shall furnish the supplier with the
15 manufacturer's or graphic arts producer's name, registration
16 or resale number, and a statement that a specific amount of
17 the use tax or service use tax liability, not to exceed 6.25%
18 of the selling price, is being satisfied with the credit. The
19 manufacturer or graphic arts producer shall remain liable to
20 timely report all information required by the annual Report
21 of Manufacturer's Purchase Credit Used for all credit
22 utilized by a construction contractor.
23 The Manufacturer's Purchase Credit may be used to satisfy
24 liability under Article 15 or Article 25 of this Code due on
25 the purchase of production related tangible personal property
26 (including purchases by a manufacturer, by a graphic arts
27 producer, or by a lessor who rents or leases the use of the
28 property to a manufacturer or graphic arts producer) that
29 does not otherwise qualify for the manufacturing machinery
30 and equipment exemption or the graphic arts machinery and
31 equipment exemption. "Production related tangible personal
32 property" means (i) all tangible personal property used or
33 consumed by the purchaser in a manufacturing facility in
34 which a manufacturing process described in Section 30-100 of
-64- LRB9000671KDdvA
1 this Code takes place, including tangible personal property
2 purchased for incorporation into real estate within a
3 manufacturing facility and including, but not limited to,
4 tangible personal property used or consumed in activities
5 such as preproduction material handling, receiving, quality
6 control, inventory control, storage, staging, and packaging
7 for shipping and transportation purposes; (ii) all tangible
8 personal property used or consumed by the purchaser in a
9 graphic arts facility in which graphic arts production as
10 described in Section 5-45 of this Code takes place, including
11 tangible personal property purchased for incorporation into
12 real estate within a graphic arts facility and including, but
13 not limited to, all tangible personal property used or
14 consumed in activities such as graphic arts preliminary or
15 pre-press production, pre-production material handling,
16 receiving, quality control, inventory control, storage,
17 staging, sorting, labeling, mailing, tying, wrapping, and
18 packaging; and (iii) all tangible personal property used or
19 consumed by the purchaser for research and development.
20 "Production related tangible personal property" does not
21 include (i) tangible personal property used, within or
22 without a manufacturing facility, in sales, purchasing,
23 accounting, fiscal management, marketing, personnel
24 recruitment or selection, or landscaping or (ii) tangible
25 personal property required to be titled or registered with a
26 department, agency, or unit of federal, state, or local
27 government. The Manufacturer's Purchase Credit may be used
28 to satisfy the tax arising either from the purchase of
29 machinery and equipment on or after January 1, 1995 for which
30 the exemption provided by Section 30-95 of this Code was
31 erroneously claimed, or the purchase of machinery and
32 equipment on or after July 1, 1996 for which the exemption
33 provided by Section 30-90 of this Code was erroneously
34 claimed, but not in satisfaction of penalty, if any, and
-65- LRB9000671KDdvA
1 interest for failure to pay the tax when due. A purchaser of
2 production related tangible personal property who is required
3 to pay Illinois use tax or service use tax on the purchase
4 directly to the Department may utilize the Manufacturer's
5 Purchase Credit in satisfaction of the tax arising from that
6 purchase, but not in satisfaction of penalty and interest. A
7 purchaser who uses the Manufacturer's Purchase Credit to
8 purchase property which is later determined not to be
9 production related tangible personal property may be liable
10 for tax, penalty, and interest on the purchase of that
11 property as of the date of purchase but shall be entitled to
12 use the disallowed Manufacturer's Purchase Credit, so long as
13 it has not expired, on qualifying purchases of production
14 related tangible personal property not previously subject to
15 credit usage. The Manufacturer's Purchase Credit earned by a
16 manufacturer or graphic arts producer expires the last day of
17 the second calendar year following the calendar year in which
18 the credit arose.
19 A purchaser earning Manufacturer's Purchase Credit shall
20 sign and file an annual Report of Manufacturer's Purchase
21 Credit Earned for each calendar year no later than the last
22 day of the sixth month following the calendar year in which a
23 Manufacturer's Purchase Credit is earned. A Report of
24 Manufacturer's Purchase Credit Earned shall be filed on forms
25 as prescribed or approved by the Department and shall state,
26 for each month of the calendar year: (i) the total purchase
27 price of all purchases of exempt manufacturing or graphic
28 arts machinery on which the credit was earned; (ii) the total
29 State use tax or service use tax which would have been due on
30 those items; (iii) the percentage used to calculate the
31 amount of credit earned; (iv) the amount of credit earned;
32 and (v) such other information as the Department may
33 reasonably require. A purchaser earning Manufacturer's
34 Purchase Credit shall maintain records which identify, as to
-66- LRB9000671KDdvA
1 each purchase of manufacturing or graphic arts machinery and
2 equipment on which the purchaser earned Manufacturer's
3 Purchase Credit, the vendor (including, if applicable, either
4 the vendor's registration number or Federal Employer
5 Identification Number), the purchase price, and the amount of
6 Manufacturer's Purchase Credit earned on each purchase.
7 A purchaser using Manufacturer's Purchase Credit shall
8 sign and file an annual Report of Manufacturer's Purchase
9 Credit Used for each calendar year no later than the last day
10 of the sixth month following the calendar year in which a
11 Manufacturer's Purchase Credit is used. A Report of
12 Manufacturer's Purchase Credit Used shall be filed on forms
13 as prescribed or approved by the Department and shall state,
14 for each month of the calendar year: (i) the total purchase
15 price of production related tangible personal property
16 purchased from Illinois suppliers; (ii) the total purchase
17 price of production related tangible personal property
18 purchased from out-of-state suppliers; (iii) the total amount
19 of credit used during such month; and (iv) such other
20 information as the Department may reasonably require. A
21 purchaser using Manufacturer's Purchase Credit shall maintain
22 records that identify, as to each purchase of production
23 related tangible personal property on which the purchaser
24 used Manufacturer's Purchase Credit, the vendor (including,
25 if applicable, either the vendor's registration number or
26 Federal Employer Identification Number), the purchase price,
27 and the amount of Manufacturer's Purchase Credit used on each
28 purchase.
29 No annual report shall be filed before May 1, 1996. A
30 purchaser that fails to file an annual Report of
31 Manufacturer's Purchase Credit Earned or an annual Report of
32 Manufacturer's Purchase Credit Used by the last day of the
33 sixth month following the end of the calendar year shall
34 forfeit all Manufacturer's Purchase Credit for that calendar
-67- LRB9000671KDdvA
1 year unless it establishes that its failure to file was due
2 to reasonable cause. Manufacturer's Purchase Credit reports
3 may be amended to report and claim credit on qualifying
4 purchases not previously reported at any time before the
5 credit would have expired, unless both the Department and the
6 purchaser have agreed to an extension of the statute of
7 limitations for the issuance of a notice of tax liability as
8 provided in Section 50-145 of this Code. If the time for
9 assessment or refund has been extended, then amended reports
10 for a calendar year may be filed at any time prior to the
11 date to which the statute of limitations for the calendar
12 year or portion thereof has been extended. No Manufacturer's
13 Purchase Credit report filed with the Department for periods
14 prior to January 1, 1995 shall be approved. Manufacturer's
15 Purchase Credit claimed on an amended report may be used to
16 satisfy tax liability under Article 15 or Article 25 of this
17 Code (i) on qualifying purchases of production related
18 tangible personal property made after the date the amended
19 report is filed or (ii) assessed by the Department on
20 qualifying purchases of production related tangible personal
21 property made in the case of manufacturers on or after
22 January 1, 1995, or in the case of graphic arts producers on
23 or after July 1, 1996.
24 If the purchaser is not the manufacturer or a graphic
25 arts producer, but rents or leases the use of the property to
26 a manufacturer or graphic arts producer, the purchaser may
27 earn, report, and use Manufacturer's Purchase Credit in the
28 same manner as a manufacturer or graphic arts producer.
29 A purchaser shall not be entitled to any Manufacturer's
30 Purchase Credit for a purchase that is required to be
31 reported and is not timely reported as provided in this
32 Section. A purchaser remains liable for (i) any tax that was
33 satisfied by use of a Manufacturer's Purchase Credit, as of
34 the date of purchase, if that use is not timely reported as
-68- LRB9000671KDdvA
1 required in this Section and (ii) for any applicable
2 penalties and interest for failing to pay the tax when due.
3 Section 30-235. Sale of service. For purposes of the
4 service occupation tax and the service use tax, "sale of
5 service" means any transaction except:
6 (1) a retail sale of tangible personal property
7 taxable under Article 10 or Article 15.
8 (2) a sale of tangible personal property for the
9 purpose of resale made in compliance with Section 35-50.
10 (3) for purposes of the service occupation tax
11 only, until January 1, 1997, a sale, by a registered
12 serviceman paying service occupation tax to the
13 Department, of special order printed materials delivered
14 outside Illinois and which are not returned to this
15 State, if delivery is made by the seller or agent of the
16 seller, including an agent who causes the product to be
17 delivered outside Illinois by a common carrier or the
18 U.S. postal service.
19 Section 30-240. Election not to be sale of service. For
20 purposes of the service occupation tax and the service use
21 tax, "sale of service" shall not include, at the election of
22 any serviceman not required to be otherwise registered as a
23 retailer under Sections 35-5 through 35-45, made for each
24 fiscal year sales of service in which the aggregate annual
25 cost price of tangible personal property transferred as an
26 incident to the sales of service is less than 35%, or 75% in
27 the case of servicemen transferring prescription drugs or
28 servicemen engaged in graphic arts production, of the
29 aggregate annual total gross receipts from all sales of
30 service. The purchase of such tangible personal property by
31 the serviceman shall be subject to the retailers' occupation
32 tax and the use tax. However, if a primary serviceman who
-69- LRB9000671KDdvA
1 has made the election described in this Section subcontracts
2 service work to a secondary serviceman who has also made the
3 election described in this Section, the primary serviceman
4 does not incur a use tax liability if the secondary
5 serviceman (i) has paid or will pay use tax on his or her
6 cost price of any tangible personal property transferred to
7 the primary serviceman and (ii) certifies that fact in
8 writing to the primary serviceman.
9 Section 30-245. Maintenance agreement. Tangible personal
10 property transferred incident to the completion of a
11 maintenance agreement is exempt from the taxes imposed
12 pursuant to Article 20 and Article 25.
13 ARTICLE 35. APPLICATION, REGISTRATION, AND BONDING
14 Section 35-5. Certificate of registration.
15 (a) All of the provisions of Section 35-5 and Sections
16 35-25 through 35-45 of this Code concerning registration
17 shall apply to the retailers' occupation tax, the use tax,
18 the service occupation tax, and the service use tax unless
19 otherwise stated. To the extent that any provision
20 specifically applying to the use tax, the service occupation
21 tax, or the service use tax is inconsistent with a general
22 provision applying to all of the taxes, the specific
23 provision shall control.
24 (b) It is unlawful for any person to engage in the
25 business of selling tangible personal property at retail in
26 this State without a certificate of registration from the
27 Department. Application for a certificate of registration
28 shall be made to the Department upon forms furnished by it.
29 Each such application shall be signed and verified and shall
30 state: (1) the name and social security number of the
31 applicant; (2) the address of his principal place of
-70- LRB9000671KDdvA
1 business; (3) the address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State and the addresses
4 of all other places of business, if any (enumerating such
5 addresses, if any, in a separate list attached to and made a
6 part of the application), from which he engages in the
7 business of selling tangible personal property at retail in
8 this State; (4) the name and address of the person or persons
9 who will be responsible for filing returns and payment of
10 taxes due under Article 10 of this Code; (5) in the case of a
11 corporation, the name, title, and social security number of
12 each corporate officer; (6) in the case of a limited
13 liability company, the name, social security number, and FEIN
14 number of each manager and member; and (7) such other
15 information as the Department may reasonably require. The
16 application shall contain an acceptance of responsibility
17 signed by the person or persons who will be responsible for
18 filing returns and payment of the taxes due under Article 10.
19 If the applicant will sell tangible personal property at
20 retail through vending machines, his application to register
21 shall indicate the number of vending machines to be so
22 operated; and thereafter, he shall notify the Department by
23 January 31 of the number of vending machines which such
24 person was using in his business of selling tangible personal
25 property at retail on the preceding December 31.
26 The Department may deny a certificate of registration to
27 any applicant if the owner, any partner, any manager or
28 member of a limited liability company, or a corporate officer
29 of the applicant, is or has been the owner, a partner, a
30 manager or member of a limited liability company, or a
31 corporate officer, of another retailer that is in default for
32 moneys due under this Code.
33 Section 35-10. Certificate of registration; use tax. A
-71- LRB9000671KDdvA
1 retailer maintaining a place of business in this State, if
2 required to register for purposes of the retailers'
3 occupation tax, need not obtain an additional certificate of
4 registration for purposes of the use tax, but shall be deemed
5 to be sufficiently registered under the provisions of this
6 Code. Every retailer maintaining a place of business in this
7 State, if not required to register for purposes of the
8 retailers' occupation tax, shall apply to the Department
9 (upon a form prescribed and furnished by the Department) for
10 a certificate of registration for purposes of the use tax.
11 Section 35-15. Certificate of registration; service
12 occupation tax. A supplier maintaining a place of business
13 in this State, if required to register for purposes of the
14 retailers' occupation tax, the use tax, or the service use
15 tax, need not obtain an additional certificate of
16 registration for purposes of the service occupation tax, but
17 shall be deemed to be sufficiently registered by virtue of
18 his being registered for purposes of the retailers'
19 occupation tax, the use tax, or the service use tax. Every
20 supplier maintaining a place of business in this State, if
21 not required to register for purposes of the retailers'
22 occupation tax, the use tax, or the service use tax, shall
23 apply to the Department (upon a form prescribed and furnished
24 by the Department) for a certificate of registration for
25 purposes of the service occupation tax. Every serviceman
26 maintaining a place of business in this State, if not
27 required to register for purposes of the retailers'
28 occupation tax, the use tax, or the service use tax, and
29 desiring to or required to pay the tax imposed by Article 20
30 directly to the Department, shall apply to the Department
31 (upon a form prescribed and furnished by the Department) for
32 a certificate of registration for purposes of the service
33 occupation tax.
-72- LRB9000671KDdvA
1 Section 35-20. Certificate of registration; service use
2 tax. A serviceman maintaining a place of business in this
3 State, if required to register for purposes of the retailers'
4 occupation tax, for purposes of the use tax, or for purposes
5 of the service occupation tax, need not obtain an additional
6 certificate of registration for purposes of the service use
7 tax, but shall be deemed to be sufficiently registered by
8 virtue of his being registered for purposes of the retailers'
9 occupation tax, the use tax, or the service occupation tax.
10 Every serviceman maintaining a place of business in this
11 State, if not required to register for purposes of the
12 retailers' occupation tax, the use tax, or the service
13 occupation tax, shall apply to the Department (upon a form
14 prescribed and furnished by the Department) for a certificate
15 of registration for purposes of the service use tax.
16 Section 35-25. Bonds.
17 (a) Every applicant for a certificate of registration
18 shall, at the time of filing such application, furnish a bond
19 from a surety company authorized to do business in the State
20 of Illinois, or an irrevocable bank letter of credit or a
21 bond signed by 2 personal sureties who have filed, with the
22 Department, sworn statements disclosing net assets equal to
23 at least 3 times the amount of the bond to be required of
24 such applicant, or a bond secured by an assignment of a bank
25 account or certificate of deposit, stocks or bonds,
26 conditioned upon the applicant paying to the State of
27 Illinois all moneys becoming due under this Code and under
28 any other State tax law or municipal or county tax ordinance
29 or resolution under which the certificate of registration
30 that is issued to the applicant under Sections 35-5 through
31 35-20 will permit the applicant to engage in business without
32 registering separately under such other law, ordinance or
33 resolution. The Department shall fix the amount of such
-73- LRB9000671KDdvA
1 security in each case, taking into consideration the amount
2 of money expected to become due from the applicant under this
3 Code and under any other State tax law or municipal or county
4 tax ordinance or resolution under which the certificate of
5 registration that is issued to the applicant under Sections
6 35-5 through 35-20 will permit the applicant to engage in
7 business without registering separately under such other law,
8 ordinance or resolution. The amount of security required by
9 the Department shall be such as, in its opinion, will protect
10 the State of Illinois against failure to pay the amount which
11 may become due from the applicant under this Code and under
12 any other State tax law or municipal or county tax ordinance
13 or resolution under which the certificate of registration
14 that is issued to the applicant under Sections 35-5 through
15 35-20 will permit the applicant to engage in business without
16 registering separately under such other law, ordinance or
17 resolution, but the amount of the security required by the
18 Department shall not exceed three times the amount of the
19 applicant's average monthly tax liability, or $50,000.00,
20 whichever amount is lower.
21 (b) With respect to security other than bonds (upon which
22 the Department may sue in the event of a forfeiture), if the
23 taxpayer fails to pay, when due, any amount whose payment
24 such security guarantees, the Department shall, after such
25 liability is admitted by the taxpayer or established by the
26 Department through the issuance of a final assessment that
27 has become final under the law, convert the security which
28 that taxpayer has furnished into money for the State, after
29 first giving the taxpayer at least 10 days' written notice,
30 by registered or certified mail, to pay the liability or
31 forfeit such security to the Department. If the security
32 consists of stocks or bonds or other securities which are
33 listed on a public exchange, the Department shall sell such
34 securities through such public exchange. If the security
-74- LRB9000671KDdvA
1 consists of an irrevocable bank letter of credit, the
2 Department shall convert the security in the manner provided
3 for in the Uniform Commercial Code. If the security consists
4 of a bank certificate of deposit, the Department shall
5 convert the security into money by demanding and collecting
6 the amount of such bank certificate of deposit from the bank
7 which issued such certificate. If the security consists of a
8 type of stocks or other securities which are not listed on a
9 public exchange, the Department shall sell such security to
10 the highest and best bidder after giving at least 10 days'
11 notice of the date, time and place of the intended sale by
12 publication in the "State Official Newspaper". If the
13 Department realizes more than the amount of such liability
14 from the security, plus the expenses incurred by the
15 Department in converting the security into money, the
16 Department shall pay such excess to the taxpayer who
17 furnished such security, and the balance shall be paid into
18 the State Treasury.
19 (c) No certificate of registration under this Code shall
20 be issued by the Department until the applicant provides the
21 Department with satisfactory security as herein provided for.
22 (d) The Department shall discharge any surety and shall
23 release and return any security deposited, assigned, pledged
24 or otherwise provided to it by a taxpayer under this Section
25 within 30 days after:
26 (1) such taxpayer becomes a Prior Continuous
27 Compliance taxpayer as defined in Section 35-35; or
28 (2) such taxpayer has ceased to collect receipts on
29 which he is required to remit tax to the Department, has
30 filed a final tax return, and has paid to the Department
31 an amount sufficient to discharge his remaining tax
32 liability, as determined by the Department, under this
33 Code and under every other State tax law or municipal or
34 county tax ordinance or resolution under which the
-75- LRB9000671KDdvA
1 certificate of registration issued under Sections 35-5
2 through 35-20 permits the registrant to engage in
3 business without registering separately under such other
4 law, ordinance or resolution. The Department shall make
5 a final determination of the taxpayer's outstanding tax
6 liability as expeditiously as possible after his final
7 tax return has been filed; if the Department cannot make
8 such final determination within 45 days after receiving
9 the final tax return, within such period it shall so
10 notify the taxpayer, stating its reasons therefor.
11 Section 35-30. Issuance of certificate of registration;
12 sub-certificate of registration.
13 (a) Upon receipt of the application for certificate of
14 registration in proper form, and upon approval by the
15 Department of the security furnished by the applicant, the
16 Department shall issue to such applicant a certificate of
17 registration which shall permit the person to whom it is
18 issued to act as a retailer, supplier, or serviceman in this
19 State. The certificate of registration shall be conspicuously
20 displayed at the place of business which the person so
21 registered states in his application to be the principal
22 place of business from which he will act as a retailer,
23 supplier, or serviceman in this State.
24 No certificate of registration issued to a taxpayer who
25 files returns required by this Code on a monthly basis shall
26 be valid after the expiration of 5 years from the date of its
27 issuance or last renewal. The expiration date of a
28 sub-certificate of registration shall be that of the
29 certificate of registration to which the sub-certificate
30 relates. A certificate of registration shall automatically
31 be renewed, subject to revocation as provided by this Code,
32 for an additional 5 years from the date of its expiration
33 unless otherwise notified by the Department as provided by
-76- LRB9000671KDdvA
1 this paragraph. Where a taxpayer to whom a certificate of
2 registration is issued under this Code is in default to the
3 State of Illinois for moneys due under this Code or any other
4 State tax law or municipal or county ordinance administered
5 or enforced by the Department, the Department shall, not less
6 than 120 days before the expiration date of such certificate
7 of registration, give notice to the taxpayer to whom the
8 certificate was issued, of the amount of tax, penalty and
9 interest due and owing from the taxpayer, and that the
10 certificate of registration shall not be automatically
11 renewed upon its expiration date unless the taxpayer, on or
12 before the date of expiration, has paid the defaulted amount
13 in full. A taxpayer to whom such a notice is issued shall be
14 deemed an applicant for renewal. The Department shall
15 promulgate regulations establishing procedures for taxpayers
16 who file returns on a monthly basis but desire and qualify to
17 change to a quarterly or yearly filing basis and will no
18 longer be subject to renewal under this Section, and for
19 taxpayers who file returns on a yearly or quarterly basis but
20 who desire or are required to change to a monthly filing
21 basis and will be subject to renewal under this Section.
22 The Department may in its discretion approve renewal by
23 an applicant who is in default if, at the time of application
24 for renewal, the applicant pays to the Department such
25 percentage of the defaulted amount as may be determined by
26 the Department and agrees in writing to waive all limitations
27 upon the Department for collection of the remaining defaulted
28 amount to the Department over a period not to exceed 5 years
29 from the date of renewal of the certificate; however, no
30 renewal application submitted by an applicant who is in
31 default shall be approved if the immediately preceding
32 renewal by the applicant was conditioned upon the installment
33 payment agreement described in this Section. The payment
34 agreement herein provided for shall be in addition to and not
-77- LRB9000671KDdvA
1 in lieu of the security required by Section 35-25 of a
2 taxpayer who is no longer considered a prior continuous
3 compliance taxpayer. The execution of the payment agreement
4 as provided in this Code shall not toll the accrual of
5 interest at the statutory rate.
6 A certificate of registration issued under this Code more
7 than 5 years before the effective date of this amendatory Act
8 of 1989 shall expire and be subject to the renewal provisions
9 of this Section on the next anniversary of the date of
10 issuance of such certificate which occurs more than 6 months
11 after the effective date of this amendatory Act of 1989. A
12 certificate of registration issued less than 5 years before
13 the effective date of this amendatory Act of 1989 shall
14 expire and be subject to the renewal provisions of this
15 Section on the 5th anniversary of the issuance of the
16 certificate.
17 (b) If the person so registered states that he operates
18 other places of business from which he acts as a retailer,
19 supplier, or serviceman in this State, the Department shall
20 furnish him with a sub-certificate of registration for each
21 such place of business, and the applicant shall display the
22 appropriate sub-certificate of registration at each such
23 place of business. All sub-certificates of registration shall
24 bear the same registration number as that appearing upon the
25 certificate of registration to which such sub-certificates
26 relate.
27 (c) If the applicant will sell tangible personal
28 property at retail through vending machines, the Department
29 shall furnish him with a sub-certificate of registration for
30 each such vending machine, and the applicant shall display
31 the appropriate sub-certificate of registration on each such
32 vending machine by attaching the sub-certificate of
33 registration to a conspicuous part of such vending machine.
34 Where the same person engages in 2 or more businesses
-78- LRB9000671KDdvA
1 that are subject to registration under this Code, which
2 businesses are substantially different in character or are
3 engaged in under different trade names or are engaged in
4 under other substantially dissimilar circumstances (so that
5 it is more practicable, from an accounting, auditing or
6 bookkeeping standpoint, for such businesses to be separately
7 registered), the Department may require or permit such person
8 (subject to the same requirements concerning the furnishing
9 of security as those that are provided for in Section 35-25
10 as to each application for a certificate of registration) to
11 apply for and obtain a separate certificate of registration
12 for each such business or for any of such businesses, under a
13 single certificate of registration supplemented by related
14 sub-certificates of registration.
15 Section 35-35. Prior continuous compliance taxpayer.
16 (a) Any person who is registered under Section 35-5 as of
17 March 8, 1963, and who, during the 3-year period immediately
18 prior to March 8, 1963, or during a continuous 3-year period
19 part of which passed immediately before and the remainder of
20 which passes immediately after March 8, 1963, has been so
21 registered continuously and who is determined by the
22 Department not to have been either delinquent or deficient in
23 the payment of tax liability during that period under this
24 Code or under any other State tax law or municipal or county
25 tax ordinance or resolution under which the certificate of
26 registration that is issued to the registrant under this Code
27 will permit the registrant to engage in business without
28 registering separately under such other law, ordinance or
29 resolution, shall be considered to be a Prior Continuous
30 Compliance taxpayer. Also any taxpayer who has, as verified
31 by the Department, faithfully and continuously complied with
32 the condition of his bond or other security under the
33 provisions of this Code for a period of 3 consecutive years
-79- LRB9000671KDdvA
1 shall be considered to be a Prior Continuous Compliance
2 taxpayer.
3 (b) Every Prior Continuous Compliance taxpayer shall be
4 exempt from all requirements under this Code concerning the
5 furnishing of security as a condition precedent to his being
6 authorized to engage in the business of selling tangible
7 personal property at retail in this State. This exemption
8 shall continue for each such taxpayer until such time as he
9 may be determined by the Department to be delinquent in the
10 filing of any returns, or is determined by the Department
11 (either through the Department's issuance of a final
12 assessment which has become final under the Code, or by the
13 taxpayer's filing of a return which admits tax that is not
14 paid to be due) to be delinquent or deficient in the paying
15 of any tax under this Code or under any other State tax law
16 or municipal or county tax ordinance or resolution under
17 which the certificate of registration that is issued to the
18 registrant under Sections 35-5 through 35-20 will permit the
19 registrant to engage in business without registering
20 separately under such other law, ordinance or resolution, at
21 which time that taxpayer shall become subject to all the
22 financial responsibility requirements of this Code and, as a
23 condition of being allowed to continue to engage in the
24 business of selling tangible personal property at retail,
25 shall be required to post bond or other acceptable security
26 with the Department covering liability which such taxpayer
27 may thereafter incur. Any taxpayer who fails to pay an
28 admitted or established liability under this Code may also be
29 required to post bond or other acceptable security with this
30 Department guaranteeing the payment of such admitted or
31 established liability.
32 Section 35-40. Registrants in default. No certificate of
33 registration shall be issued to any person who is in default
-80- LRB9000671KDdvA
1 to the State of Illinois for moneys due under this Code or
2 under any other State tax law or municipal or county tax
3 ordinance or resolution under which the certificate of
4 registration that is issued to the applicant under this Code
5 will permit the applicant to engage in business without
6 registering separately under such other law, ordinance or
7 resolution.
8 Section 35-45. Hearings. Any person aggrieved by any
9 decision of the Department under Sections 35-5 through 35-40
10 may, within 20 days after notice of such decision, protest
11 and request a hearing, whereupon the Department shall give
12 notice to such person of the time and place fixed for such
13 hearing and shall hold a hearing in conformity with the
14 provisions of this Code and then issue its final
15 administrative decision in the matter to such person. In the
16 absence of such a protest within 20 days, the Department's
17 decision shall become final without any further determination
18 being made or notice given.
19 Section 35-50. Resale number. If the purchaser is not
20 registered with the Department as a taxpayer, but claims to
21 be a reseller of the tangible personal property in such a way
22 that such resales are not taxable under this Code or under
23 some other tax law which the Department may administer, such
24 purchaser (except in the case of an out-of-State purchaser
25 who will always resell and deliver the property to his
26 customers outside Illinois) shall apply to the Department for
27 a resale number. Such applicant shall state facts which will
28 show the Department why such applicant is not liable for tax
29 under this Code or under some other tax law which the
30 Department may administer on any of his resales and shall
31 furnish such additional information as the Department may
32 reasonably require.
-81- LRB9000671KDdvA
1 Upon approval of the application, the Department shall
2 assign a resale number to the applicant and shall certify
3 such number to him. The Department may cancel any such number
4 which is obtained through misrepresentation, or which is used
5 to make a purchase tax-free when the purchase in fact is not
6 a purchase for resale, or which no longer applies because of
7 the purchaser's having discontinued the making of tax exempt
8 resales of the property.
9 The Department may restrict the use of the number to one
10 year at a time or to some other definite period if the
11 Department finds it impracticable or otherwise inadvisable to
12 issue such numbers for indefinite periods.
13 Except as provided hereinabove in this Section, a sale
14 shall be made tax-free on the ground of being a sale for
15 resale if the purchaser has an active registration number or
16 resale number from the Department and furnishes that number
17 to the seller in connection with certifying to the seller
18 that any sale to such purchaser is nontaxable because of
19 being a sale for resale.
20 Failure to present an active registration number or
21 resale number and a certification to the seller that a sale
22 is for resale creates a presumption that a sale is not for
23 resale. This presumption may be rebutted by other evidence
24 that all of the seller's sales are sale for resale, or that a
25 particular sale is a sale for resale.
26 Section 35-55. High impact business. Except for high
27 impact businesses, the exemption stated in Sections 30-10 and
28 30-20 shall only apply to business enterprises which:
29 (1) either (i) make investments which cause the
30 creation of a minimum of 200 full-time equivalent jobs in
31 Illinois or (ii) make investments which cause the
32 retention of a minimum of 2000 full-time jobs in Illinois
33 or (iii) make investments of a minimum of $40,000,000 and
-82- LRB9000671KDdvA
1 retain at least 90% of the jobs in place on the date on
2 which the exemption is granted and for the duration of
3 the exemption; and
4 (2) are located in an enterprise zone established
5 pursuant to the Illinois Enterprise Zone Act; and
6 (3) are certified by the Department of Commerce and
7 Community Affairs as complying with the requirements
8 specified in clauses (1), (2) and (3).
9 Any business enterprise seeking to avail itself of the
10 exemptions stated in Sections 30-10 or 30-20, or both, shall
11 make application to the Department of Commerce and Community
12 Affairs in such form and providing such information as may be
13 prescribed by the Department of Commerce and Community
14 Affairs. However, no business enterprise shall be required,
15 as a condition for certification under clause (3) of this
16 Section, to attest that its decision to invest under clause
17 (1) of this Section and to locate under clause (2) of this
18 Section is predicated upon the availability of the exemptions
19 authorized by Sections 30-10 or 30-20.
20 The Department of Commerce and Community Affairs shall
21 determine whether the business enterprise meets the criteria
22 prescribed in this Section. If the Department of Commerce
23 and Community Affairs determines that such business
24 enterprise meets the criteria, it shall issue a certificate
25 of eligibility for exemption to the business enterprise in
26 such form as is prescribed by the Department of Revenue. The
27 Department of Commerce and Community Affairs shall act upon
28 such certification requests within 60 days after receipt of
29 the application, and shall file with the Department of
30 Revenue a copy of each certificate of eligibility for
31 exemption.
32 The Department of Commerce and Community Affairs shall
33 have the power to promulgate rules and regulations to carry
34 out the provisions of this Section including the power to
-83- LRB9000671KDdvA
1 define the amounts and types of eligible investments not
2 specified in this Section which business enterprises must
3 make in order to receive the exemptions stated in Sections
4 30-10 and 30-20 of this Code; and to require that any
5 business enterprise that is granted a tax exemption repay the
6 exempted tax if the business enterprise fails to comply with
7 the terms and conditions of the certification.
8 Such certificate of eligibility for exemption shall be
9 presented by the business enterprise to its supplier when
10 making the initial purchase of tangible personal property for
11 which an exemption is granted by Section 30-10 or Section
12 30-20, or both, together with a certification by the business
13 enterprise that such tangible personal property is exempt
14 from taxation under Section 30-10 or Section 30-20 and by
15 indicating the exempt status of each subsequent purchase on
16 the face of the purchase order.
17 The Department of Commerce and Community Affairs shall
18 determine the period during which such exemption from the
19 taxes imposed under this Code is in effect which shall not
20 exceed 20 years.
21 Section 35-60. Exemption identification number. On or
22 before December 31, 1986, except as hereinafter provided,
23 each entity otherwise eligible under Section 30-170 shall
24 make application to the Department for an exemption
25 identification number. In the case of a corporation, society,
26 association, foundation, or institution organized and
27 operated exclusively for charitable purposes and that has
28 more than 50 subsidiary organizations in Illinois, the
29 Department, in its sole discretion, may issue one exemption
30 identification number to be used by the parent organization
31 and each subsidiary organization.
32 Each exemption identification number or renewal number
33 shall be valid for 5 years after the first day of the month
-84- LRB9000671KDdvA
1 following the month of issuance. Not less than 3 months
2 before the expiration date, an application for renewal shall
3 be filed.
4 Each application for an exemption identification number
5 or a renewal number shall contain information and be
6 accompanied by documentation as shall be requested by the
7 Department.
8 Section 35-65. Exemption identification number; list.
9 Upon request made on or after July 1, 1987, the Department
10 shall furnish to any county or municipality a list containing
11 the name of each corporation, society, association,
12 foundation or institution organized and operated exclusively
13 for charitable, religious or educational purposes, and each
14 not-for-profit corporation, society, association, foundation,
15 institution or organization which has no compensated officers
16 or employees and which is organized and operated primarily
17 for the recreation of persons 55 years of age or older, which
18 had a valid exemption identification number on the first day
19 of January or July, as the case may be, proceeding the date
20 on which such request is received and which is located within
21 the corporate limits of such municipality or the
22 unincorporated territory of such county, except that the list
23 need not include subsidiary organizations using an exemption
24 identification number issued to its parent organization as
25 provided by Section 30-20.
26 Section 35-70. Exemption from bonding. Notwithstanding
27 any other provision to the contrary, any person who is
28 required to file a bond pursuant to any provision of this
29 Code and who has continuously complied with all provisions of
30 this Code for 24 or more consecutive months, shall no longer
31 be required to comply with the bonding provisions of this
32 Code so long as such person continues his compliance with the
-85- LRB9000671KDdvA
1 provisions of this Code.
2 Section 35-75. Exemption from bonding; Department of
3 Revenue. The Department is not required to furnish any bond
4 nor to make a deposit for or pay any costs or fees of any
5 court or officer thereof in any judicial proceedings under
6 this Code. Whenever a certified copy of a judgment or order
7 for attachment, issued from any court for the enforcement or
8 collection of any liability created by this Code, is levied
9 by any sheriff or coroner upon any personal property, and
10 such property is claimed by any person other than the
11 judgment debtor or the defendant in the attachment, or is
12 claimed by the judgment debtor or defendant in the attachment
13 as exempt from enforcement of a judgment thereon by virtue of
14 the exemption laws of this State, then the person making such
15 claim shall give notice in writing of his or her claim and of
16 his or her intention to prosecute the claim, to the sheriff
17 or coroner within 10 days after the making of the levy. On
18 receiving such notice, the sheriff or coroner shall proceed
19 in accordance with Part 2 of Article XII of the Code of Civil
20 Procedure, as amended. The giving of such notice within the
21 10 day period is a condition precedent to any judicial action
22 against the sheriff or coroner for wrongfully levying,
23 seizing or selling the property and any such person who fails
24 to give such notice within that time is barred from bringing
25 any judicial action against such sheriff or coroner for
26 injury or damages to or conversion of the property.
27 Section 35-80. Aircraft maintenance facility. Aircraft
28 maintenance facility means a facility operated by an
29 interstate carrier for hire that is used primarily for the
30 maintenance, rebuilding or repair of aircraft, aircraft parts
31 and auxiliary equipment owned or leased by that carrier and
32 used by that carrier as rolling stock moving in interstate
-86- LRB9000671KDdvA
1 commerce, and which: (1) will make an investment by the
2 interstate carrier for hire of $400,000,000 or more in an
3 enterprise zone; (2) will cause the creation of at least
4 5,000 full-time jobs in that enterprise zone; (3) is located
5 in a county with population not less than 150,000 and not
6 more than 200,000 and that contains 3 enterprise zones as of
7 December 31, 1990; (4) enters into a legally binding
8 agreement with the Department of Commerce and Community
9 Affairs to comply with clauses (1) and (2) of this paragraph
10 within a time period specified in the rules and regulations
11 promulgated pursuant to this Section; and (5) is certified by
12 the Department of Commerce and Community Affairs to be in
13 compliance with clauses (1), (2), (3) and (4) of this
14 Section. Any aircraft maintenance facility applying for the
15 exemption stated in this Section shall make application to
16 the Department of Commerce and Community Affairs in such form
17 and providing such information as may be prescribed by the
18 Department of Commerce and Community Affairs.
19 The Department of Commerce and Community Affairs shall
20 determine whether the facility meets the criteria prescribed
21 in this Section. If the Department of Commerce and Community
22 Affairs determines that the facility meets the criteria, it
23 shall issue a certificate of eligibility for exemption in the
24 form prescribed by the Department of Revenue to the business
25 enterprise operating the facility. The Department of
26 Commerce and Community Affairs shall act upon certification
27 request within 60 days after receipt of application, and
28 shall file with the Department of Revenue a copy of each
29 certificate of eligibility for exemption.
30 The Department of Commerce and Community Affairs shall
31 promulgate rules and regulations to carry out the provisions
32 of this Section, and to require that any business enterprise
33 that is granted a tax exemption pay the exempted tax to the
34 Department of Revenue if the business enterprise fails to
-87- LRB9000671KDdvA
1 comply with the terms and conditions of the certification,
2 and pay all penalties and interest on that exempted tax as
3 determined by the Department of Revenue.
4 The certificate of eligibility for exemption shall be
5 presented by the business enterprise to its supplier when
6 making the initial purchase of machinery and equipment for
7 which an exemption is granted by Section 30-35 or Section
8 30-40 of this Code, or both, together with a certification by
9 the business enterprise that the machinery and equipment is
10 exempt from taxation under Section 30-35 or 30-40 of this
11 Code. The exempt status, if any, of each subsequent purchase
12 shall be indicated on the face of the purchase order.
13 Section 35-85. High impact service facility. High
14 impact service facility means a facility used primarily for
15 the sorting, handling and redistribution of single item
16 non-fungible parcels received from agents or employees of the
17 handler or shipper for processing at a common location and
18 redistribution to other employees or agents for delivery to
19 an ultimate destination on an item-by-item basis, and which:
20 (1) will make an investment by a business enterprise of
21 $150,000,000 dollars or more; (2) will cause the creation of
22 at least 1,000 jobs in an enterprise zone established
23 pursuant to the Illinois Enterprise Zone Act; and (3) is
24 certified by the Department of Commerce and Community Affairs
25 as contractually obligated to meet the requirements specified
26 in divisions (1) and (2) of this paragraph within the time
27 period as specified by the certification. Any business
28 enterprise applying for the exemption stated in this Section
29 shall make application to the Department of Commerce and
30 Community Affairs in such form and providing such information
31 as may be prescribed by the Department of Commerce and
32 Community Affairs.
33 The Department of Commerce and Community Affairs shall
-88- LRB9000671KDdvA
1 determine whether the facility meets the criteria prescribed
2 in this Section. If the Department of Commerce and Community
3 Affairs determines that such business enterprise meets the
4 criteria, it shall issue a certificate of eligibility for
5 exemption to the business enterprise in such form as is
6 prescribed by the Department of Revenue. The Department of
7 Commerce and Community Affairs shall act upon such
8 certification requests within 60 days after receipt of the
9 application, and shall file with the Department of Revenue a
10 copy of each certificate of eligibility for exemption.
11 The Department of Commerce and Community Affairs shall
12 have the power to promulgate rules and regulations to carry
13 out the provisions of this Section and to require that any
14 business enterprise that is granted a tax exemption repay the
15 exempted tax if the business enterprise fails to comply with
16 the terms and conditions of the certification.
17 The certificate of eligibility for exemption shall be
18 presented by the business enterprise to its supplier when
19 making the initial purchase of machinery and equipment for
20 which an exemption is granted by Section 30-25 of this Code,
21 together with a certification by the business enterprise that
22 such machinery and equipment is exempt from taxation under
23 Section 30-25 of this Code and by indicating the exempt
24 status of each subsequent purchase on the face of the
25 purchase order.
26 The Department of Commerce and Community Affairs shall
27 determine the period during which such exemption from the
28 taxes imposed under this Code will remain in effect.
29 Section 35-90. Enterprise zones; building materials.
30 Each retailer whose place of business is within a county or
31 municipality which has established an enterprise zone
32 pursuant to the Illinois Enterprise Zone Act and who makes a
33 sale of building materials to be incorporated into real
-89- LRB9000671KDdvA
1 estate in such enterprise zone by remodeling, rehabilitation
2 or new construction, may deduct receipts from such sales when
3 calculating the taxes imposed by this Code. The deduction
4 allowed by this Section for the sale of building materials
5 may be limited, to the extent authorized by ordinance,
6 adopted after February 18, 1992, by the municipality or
7 county that created the enterprise zone. The corporate
8 authorities of any municipality or county that adopts an
9 ordinance or resolution imposing or changing any limitation
10 on the enterprise zone exemption for building materials shall
11 transmit to the Department of Revenue on or not later than 5
12 days after publication, as provided by law, a certified copy
13 of the ordinance or resolution imposing or changing those
14 limitations, whereupon the Department of Revenue shall
15 proceed to administer and enforce those limitations effective
16 the first day of the second calendar month next following
17 date of receipt by the Department of the certified ordinance
18 or resolution.
19 ARTICLE 40. CONFIDENTIALITY
20 Section 40-5. Information confidential; exceptions. All
21 information received by the Department from returns filed
22 under this Code, or from any investigation conducted under
23 this Code, shall be confidential, except for official
24 purposes, and any person who divulges any such information in
25 any manner, except in accordance with a proper judicial order
26 or as otherwise provided by law, shall be guilty of a Class B
27 misdemeanor.
28 Nothing in this Code prevents the Director of Revenue
29 from publishing or making available to the public the names
30 and addresses of persons filing returns under this Code, or
31 reasonable statistics concerning the operation of the tax by
32 grouping the contents of returns so the information in any
-90- LRB9000671KDdvA
1 individual return is not disclosed.
2 Nothing in this Code prevents the Director of Revenue
3 from divulging to the United States Government or the
4 government of any other state, or any village that does not
5 levy any real property taxes for village operations and that
6 receives more than 60% of its general corporate revenue from
7 taxes under Articles 10, 15, 20, and 25 of this Code, or any
8 officer or agency thereof, for exclusively official purposes,
9 information received by the Department in administering this
10 Code, provided that such other governmental agency agrees to
11 divulge requested tax information to the Department.
12 The Department's furnishing of information derived from a
13 taxpayer's return or from an investigation conducted under
14 this Code to the surety on a taxpayer's bond that has been
15 furnished to the Department under this Code, either to
16 provide notice to such surety of its potential liability
17 under the bond or, in order to support the Department's
18 demand for payment from such surety under the bond, is an
19 official purpose within the meaning of this Section.
20 The furnishing upon request of information obtained by
21 the Department from returns filed under this Code or
22 investigations conducted under this Code to the Illinois
23 Liquor Control Commission for official use is deemed to be an
24 official purpose within the meaning of this Section.
25 Notice to a surety of potential liability shall not be
26 given unless the taxpayer has first been notified, not less
27 than 10 days prior thereto, of the Department's intent to so
28 notify the surety.
29 The furnishing upon request of the Auditor General, or
30 his authorized agents, for official use, of returns filed and
31 information related thereto under this Code is deemed to be
32 an official purpose within the meaning of this Section.
33 Where an appeal or a protest has been filed on behalf of
34 a taxpayer, the furnishing upon request of the attorney for
-91- LRB9000671KDdvA
1 the taxpayer of returns filed by the taxpayer and information
2 related thereto under this Code is deemed to be an official
3 purpose within the meaning of this Section.
4 The furnishing of financial information to a home rule
5 unit that has imposed a tax similar to that imposed by this
6 Code pursuant to its home rule powers, or to any village that
7 does not levy any real property taxes for village operations
8 and that receives more than 60% of its general corporate
9 revenue from taxes under Articles 10, 15, 20, and 25 of this
10 Code, upon request of the Chief Executive thereof, is an
11 official purpose within the meaning of this Section,
12 provided the home rule unit or village that does not levy any
13 real property taxes for village operations and that receives
14 more than 60% of its general corporate revenue from taxes
15 under Articles 10, 15, 20, and 25 of this Code agrees in
16 writing to the requirements of this Section.
17 For a village that does not levy any real property taxes
18 for village operations and that receives more than 60% of its
19 general corporate revenue from taxes under Articles 10, 15,
20 20, and 25 of this Code, the officers eligible to receive
21 information from the Department of Revenue under this Section
22 are the village manager and the chief financial officer of
23 the village.
24 Information so provided shall be subject to all
25 confidentiality provisions of this Section. The written
26 agreement shall provide for reciprocity, limitations on
27 access, disclosure, and procedures for requesting
28 information.
29 The Director may make available to any State agency,
30 including the Illinois Supreme Court, which licenses persons
31 to engage in any occupation, information that a person
32 licensed by such agency has failed to file returns under this
33 Code or pay the tax, penalty and interest shown therein, or
34 has failed to pay any final assessment of tax, penalty or
-92- LRB9000671KDdvA
1 interest due under this Code. The Director may also make
2 available to the Secretary of State information that a
3 limited liability company, which has filed articles of
4 organization with the Secretary of State, or corporation
5 which has been issued a certificate of incorporation by the
6 Secretary of State has failed to file returns under this Code
7 or pay the tax, penalty and interest shown therein, or has
8 failed to pay any final assessment of tax, penalty or
9 interest due under this Code. An assessment is final when all
10 proceedings in court for review of such assessment have
11 terminated or the time for the taking thereof has expired
12 without such proceedings being instituted.
13 The Director shall make available for public inspection
14 in the Department's principal office and for publication, at
15 cost, administrative decisions issued on or after January 1,
16 1995. These decisions are to be made available in a manner so
17 that the following taxpayer information is not disclosed:
18 (1) The names, addresses, and identification
19 numbers of the taxpayer, related entities, and employees.
20 (2) At the sole discretion of the Director, trade
21 secrets or other confidential information identified as
22 such by the taxpayer, no later than 30 days after receipt
23 of an administrative decision, by such means as the
24 Department shall provide by rule.
25 The Director shall determine the appropriate extent of
26 the deletions allowed in paragraph (2). In the event the
27 taxpayer does not submit deletions, the Director shall make
28 only the deletions specified in paragraph (1).
29 The Director shall make available for public inspection
30 and publication an administrative decision within 180 days
31 after the issuance of the administrative decision. The term
32 "administrative decision" has the same meaning as defined in
33 Section 3-101 of Article III of the Code of Civil Procedure.
34 Costs collected under this Section shall be paid into the Tax
-93- LRB9000671KDdvA
1 Compliance and Administration Fund.
2 ARTICLE 45. BOOKKEEPING
3 Section 45-5. Applicability of Article. The provisions
4 of this Article shall apply to the retailers' occupation tax,
5 the use tax, the service occupation tax, and the service use
6 tax. To the extent that any provision specifically applying
7 to the use tax, the service occupation tax, or the service
8 use tax is inconsistent with a general provision applying to
9 all of the taxes, the specific provision shall control.
10 Section 45-10. Records to be kept. Every person engaged
11 in the business of selling tangible personal property at
12 retail in this State shall keep records and books of all
13 sales of tangible personal property, together with invoices,
14 bills of lading, sales records, copies of bills of sale,
15 inventories prepared as of December 31 of each year or
16 otherwise annually as has been the custom in the specific
17 trade and other pertinent papers and documents. Every person
18 who is engaged in the business of selling tangible personal
19 property at retail in this State and who, in connection with
20 such business, also engages in other activities (including,
21 but not limited to, engaging in a service occupation) shall
22 keep such additional records and books of all such activities
23 as will accurately reflect the character and scope of such
24 activities and the amount of receipts realized therefrom. The
25 Department may adopt rules that establish requirements,
26 including record forms and formats, for records required to
27 be kept and maintained by taxpayers. For purposes of this
28 Section, "records" means all data maintained by the taxpayer,
29 including data on paper, microfilm, microfiche or any type of
30 machine-sensible data compilation.
31 All books and records and other papers and documents
-94- LRB9000671KDdvA
1 which are required by this Code to be kept shall be kept in
2 the English language and shall, at all times during business
3 hours of the day, be subject to inspection by the Department
4 or its duly authorized agents and employees.
5 To support deductions made on the tax return form, or
6 authorized under this Code, on account of receipts from
7 isolated or occasional sales of tangible personal property,
8 on account of receipts from sales of tangible personal
9 property for resale, on account of receipts from sales to
10 governmental bodies or other exempted types of purchasers, on
11 account of receipts from sales of tangible personal property
12 in interstate commerce, and on account of receipts from any
13 other kind of transaction that is not taxable under this
14 Code, entries in any books, records or other pertinent papers
15 or documents of the taxpayer in relation thereto shall be in
16 detail sufficient to show the name and address of the
17 taxpayer's customer in each such transaction, the character
18 of every such transaction, the date of every such
19 transaction, the amount of receipts realized from every such
20 transaction and such other information as may be necessary to
21 establish the non-taxable character of such transaction under
22 this Code.
23 Except in the case of a sale to a purchaser who will
24 always resell and deliver the property to his customers
25 outside Illinois, anyone claiming that he has made a
26 nontaxable sale for resale in some form as tangible personal
27 property shall also keep a record of the purchaser's
28 registration number or resale number with the Department.
29 It shall be presumed that all sales of tangible personal
30 property are subject to tax under this Code until the
31 contrary is established, and the burden of proving that a
32 transaction is not taxable hereunder shall be upon the person
33 who would be required to remit the tax to the Department if
34 such transaction is taxable. In the course of any audit or
-95- LRB9000671KDdvA
1 investigation or hearing by the Department with reference to
2 a given taxpayer, if the Department finds that the taxpayer
3 lacks documentary evidence needed to support the taxpayer's
4 claim to exemption from tax hereunder, the Department is
5 authorized to notify the taxpayer in writing to produce such
6 evidence, and the taxpayer shall have 60 days subject to the
7 right in the Department to extend this period either on
8 request for good cause shown or on its own motion from the
9 date when such notice is sent to the taxpayer by certified or
10 registered mail (or delivered to the taxpayer if the notice
11 is served personally) in which to obtain and produce such
12 evidence for the Department's inspection, failing which the
13 matter shall be closed, and the transaction shall be
14 conclusively presumed to be taxable hereunder.
15 Books and records and other papers reflecting gross
16 receipts received during any period with respect to which the
17 Department is authorized to issue notices of tax liability as
18 provided by Sections 50-145 and 50-150 of this Code shall be
19 preserved until the expiration of such period unless the
20 Department, in writing, shall authorize their destruction or
21 disposal prior to such expiration.
22 Section 45-15. Records; use tax; service occupation tax;
23 service use tax. For purposes of the use tax, the service
24 occupation tax, and the service use tax, every retailer,
25 supplier, or serviceman required or authorized to collect
26 taxes hereunder and every person subject to the taxes imposed
27 by Article 15, Article 20, or Article 25 shall keep such
28 records, receipts, invoices and other pertinent books,
29 documents, memoranda and papers as the Department shall
30 require, in such form as the Department shall require. The
31 Department may adopt rules that establish requirements,
32 including record forms and formats, for records required to
33 be kept and maintained by taxpayers. For purposes of this
-96- LRB9000671KDdvA
1 Section, "records" means all data maintained by the taxpayer,
2 including data on paper, microfilm, microfiche or any type of
3 machine-sensible data compilation. For the purpose of
4 administering and enforcing the provisions hereof, the
5 Department, or any officer or employee of the Department
6 designated, in writing, by the Director thereof, may hold
7 investigations and hearings concerning any matters covered
8 herein and may examine any books, papers, records, documents
9 or memoranda of (i) any retailer or purchaser bearing upon
10 the sales or purchases of tangible personal property, the
11 privilege of using which is taxed under Article 15, (ii) any
12 supplier or serviceman bearing upon the sales of services or
13 the sales of tangible personal property to servicemen, or
14 (iii) any serviceman or any taxable purchaser for use for
15 purposes of Article 25, and may require the attendance of
16 such person or any officer or employee of such person, or of
17 any person having knowledge of the facts, and may take
18 testimony and require proof for its information.
19 ARTICLE 50. RETURNS
20 Section 50-5. Applicability of Sections 50-10 through
21 50-140. All of the provisions of Sections 50-10 through
22 50-140 of this Code shall apply to the retailers' occupation
23 tax, the use tax, the service occupation tax, and the service
24 use tax unless otherwise stated, except that the Sections
25 concerning the disposition by the Department of the money
26 collected under this Code shall not apply to the service
27 occupation tax and the service use tax unless the Section
28 states that it applies to those taxes. To the extent that
29 any provision specifically applying to the use tax, the
30 service occupation tax, or the service use tax is
31 inconsistent with a general provision applying to all of the
32 taxes, the specific provision shall control.
-97- LRB9000671KDdvA
1 Section 50-10. Monthly returns. Except as provided in
2 Sections 50-5 through 50-140, on or before the twentieth day
3 of each calendar month, every person engaged in the business
4 of selling tangible personal property at retail in this State
5 during the preceding calendar month shall file a return with
6 the Department, stating:
7 (1) the name of the seller;
8 (2) his residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 (3) total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 (4) total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 (5) deductions allowed by law;
24 (6) gross receipts which were received by him
25 during the preceding calendar month or quarter and upon
26 the basis of which the tax is imposed;
27 (7) the amount of credit provided in Section 10-30;
28 (8) the amount of tax due;
29 (9) the signature of the taxpayer; and
30 (10) such other reasonable information as the
31 Department may require.
32 Section 50-15. Use tax returns. For purposes of the use
33 tax, except as provided in Sections 50-5 through 50-140, on
-98- LRB9000671KDdvA
1 or before the twentieth day of each calendar month, each
2 retailer required or authorized to collect the use tax shall
3 file a return for the preceding calendar month. Such return
4 shall be filed on forms prescribed by the Department and
5 shall furnish such information as the Department may
6 reasonably require.
7 Section 50-20. Service occupation tax returns. For
8 purposes of the service occupation tax, except as provided in
9 Sections 50-5 through 50-140, on or before the twentieth day
10 of each calendar month, each serviceman required or
11 authorized to collect the service occupation tax shall file a
12 return for the preceding calendar month in accordance with
13 reasonable rules and regulations to be promulgated by the
14 Department of Revenue. Such return shall be filed on a form
15 prescribed by the Department and shall contain such
16 information as the Department may reasonably require.
17 Section 50-25. Service use tax returns. For purposes of
18 the service use tax, except as provided in Sections 50-5
19 through 50-140, on or before the twentieth day of each
20 calendar month, each serviceman required or authorized to
21 collect the service use tax shall file a return for the
22 preceding calendar month in accordance with reasonable rules
23 and regulations to be promulgated by the Department. Such
24 return shall be filed on a form prescribed by the Department
25 and shall contain such information as the Department may
26 reasonably require.
27 Section 50-30. Quarterly returns. The Department may
28 require returns to be filed on a quarterly basis. If so
29 required, a return for each calendar quarter shall be filed
30 on or before the twentieth day of the calendar month
31 following the end of such calendar quarter. The taxpayer
-99- LRB9000671KDdvA
1 shall also file a return with the Department for each of the
2 first two months of each calendar quarter, on or before the
3 twentieth day of the following calendar month, stating:
4 (1) the name of the seller;
5 (2) the address of the principal place of business
6 from which he engages (i) in the business of selling
7 tangible personal property at retail in this State or
8 (ii) in business as a serviceman in this State;
9 (3) for purposes of the retailers' occupation tax
10 and the use tax, the total amount of taxable receipts
11 received by him during the preceding calendar month from
12 sales of tangible personal property by him during such
13 preceding calendar month, including receipts from charge
14 and time sales, but less all deductions allowed by law
15 or, for purposes of the service occupation tax and the
16 service use tax, the total amount of taxable receipts
17 received by him during the preceding calendar month,
18 including receipts from charge and time sales but less
19 all deductions allowed by law;
20 (4) the amount of credit provided in Section 10-30;
21 (5) the amount of tax due;
22 (6) for purposes of the use tax, the service
23 occupation tax, and the service use tax, the signature of
24 the taxpayer; and
25 (7) such other reasonable information as the
26 Department may require.
27 Section 50-35. Authorization to file returns on quarter
28 annual or annual basis.
29 (a) If the retailer or serviceman is otherwise required
30 to file a monthly return and if the retailer's or
31 serviceman's average monthly tax liability to the Department
32 does not exceed $200, the Department may authorize his
33 returns to be filed on a quarter annual basis, with the
-100- LRB9000671KDdvA
1 return for January, February and March of a given year being
2 due by April 20 of such year; with the return for April, May
3 and June of a given year being due by July 20 of such year;
4 with the return for July, August and September of a given
5 year being due by October 20 of such year, and with the
6 return for October, November and December of a given year
7 being due by January 20 of the following year.
8 (b) If the retailer or serviceman is otherwise required
9 to file a monthly or quarterly return and if the retailer's
10 or serviceman's average monthly tax liability with the
11 Department does not exceed $50, the Department may authorize
12 his returns to be filed on an annual basis, with the return
13 for a given year being due by January 20 of the following
14 year.
15 (c) Such quarter annual and annual returns, as to form
16 and substance, shall be subject to the same requirements as
17 monthly returns.
18 Section 50-40. Failure to sign a return. If a taxpayer
19 fails to sign a return within 30 days after the proper notice
20 and demand for signature by the Department, the return shall
21 be considered valid and any amount shown to be due on the
22 return shall be deemed assessed.
23 Section 50-45. Signature on return for a corporation or
24 limited liability company.
25 (a) Where the seller is a corporation, the return filed
26 on behalf of such corporation shall be signed by the
27 president, vice-president, secretary or treasurer or by the
28 properly accredited agent of such corporation.
29 (b) Where the seller is a limited liability company, the
30 return filed on behalf of the limited liability company shall
31 be signed by a manager, member, or properly accredited agent
32 of the limited liability company.
-101- LRB9000671KDdvA
1 Section 50-50. Statement of prepaid tax. Each return
2 shall be accompanied by the statement of prepaid tax issued
3 pursuant to Section 10-35 for which credit is claimed.
4 Section 50-55. Rounding.
5 (a) If a total amount of less than $1 is payable,
6 refundable or creditable, such amount shall be disregarded if
7 it is less than 50 cents and shall be increased to $1 if it
8 is 50 cents or more.
9 (b) Any amount which is required to be shown or reported
10 on any return or other document under this Code shall, if
11 such amount is not a whole-dollar amount, be increased to the
12 nearest whole-dollar amount in any case where the fractional
13 part of a dollar is 50 cents or more, and decreased to the
14 nearest whole-dollar amount where the fractional part of a
15 dollar is less than 50 cents.
16 Section 50-60. Cessation of business. Notwithstanding
17 any other provision in this Code concerning the time within
18 which a retailer or serviceman may file his return, in the
19 case of any retailer or serviceman who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Code, such retailer or serviceman shall
22 file a final return under this Code with the Department not
23 more than one month after discontinuing such business.
24 Section 50-65. Multiple businesses. Where the same
25 person has more than one business registered with the
26 Department under separate registrations under this Code, such
27 person may not file each return that is due as a single
28 return covering all such registered businesses, but shall
29 file separate returns for each such registered business.
30 Section 50-70. Selling price of property on return.
-102- LRB9000671KDdvA
1 (a) For purposes of the use tax, any retailer filing a
2 return under Sections 50-5 through 50-140 shall also include
3 (for the purpose of paying tax thereon) the total tax covered
4 by such return upon the selling price of tangible personal
5 property purchased by him at retail from a retailer, but as
6 to which the tax imposed by Article 15 was not collected from
7 the retailer filing such return, and such retailer shall
8 remit the amount of such tax to the Department when filing
9 such return.
10 (b) For purposes of the service use tax, any serviceman
11 filing a return hereunder shall also include the total tax
12 upon the selling price of tangible personal property
13 purchased for use by him as an incident to a sale of service,
14 and such serviceman shall remit the amount of such tax to the
15 Department when filing such return.
16 Section 50-75. Joint returns.
17 (a) For purposes of the use tax, if experience indicates
18 such action to be practicable, the Department may prescribe
19 and furnish a combination or joint return which will enable
20 retailers, who are required to file returns for the taxes
21 imposed in Article 10 and Article 15 to furnish all the
22 return information required for both taxes on the one form.
23 (b) For purposes of the service use tax, if experience
24 indicates such action to be practicable, the Department may
25 prescribe and furnish a combination or joint return which
26 will enable servicemen, who are required to file returns for
27 the taxes imposed by Articles 20 and 25, to furnish all the
28 return information required by both taxes on the one form.
29 (c) For purposes of the service occupation tax, if
30 experience indicates such action to be practicable, the
31 Department may prescribe and furnish a combination or joint
32 return which will enable servicemen, who are required to file
33 returns for the tax imposed by Article 20 and also the taxes
-103- LRB9000671KDdvA
1 imposed by Articles 10, 15, and 25, to furnish all the return
2 information required by all said taxes on the one form.
3 Section 50-80. Separate return for certain registered
4 property. With respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that
11 where, in the same transaction, a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle retailer or trailer
15 retailer for the purpose of resale, that seller for resale
16 may report the transfer of all aircraft, watercraft, motor
17 vehicles or trailers involved in that transaction to the
18 Department on the same uniform invoice-transaction reporting
19 return form.
20 Section 50-85. Retailer selling only vehicles,
21 watercraft, aircraft, or trailers. Any retailer who sells
22 only motor vehicles, watercraft, aircraft, or trailers that
23 are required to be registered with an agency of this State,
24 so that all retailers' occupation tax liability is required
25 to be reported, and is reported, on such transaction
26 reporting returns and who is not otherwise required to file
27 monthly or quarterly returns, need not file monthly or
28 quarterly returns. However, those retailers shall be
29 required to file returns on an annual basis.
30 Section 50-90. Transaction reporting return.
31 (a) The transaction reporting return, in the case of
-104- LRB9000671KDdvA
1 motor vehicles or trailers that are required to be registered
2 with an agency of this State, shall be the same document as
3 the Uniform Invoice referred to in Section 5-402 of the
4 Illinois Vehicle Code and must show the name and address of
5 the seller; the name and address of the purchaser; the amount
6 of the selling price including the amount allowed by the
7 retailer for traded-in property, if any; the amount allowed
8 by the retailer for the traded-in tangible personal property,
9 if any, to the extent to which Section 5-120 allows an
10 exemption for the value of traded-in property; the balance
11 payable after deducting such trade-in allowance from the
12 total selling price; the amount of tax due from the retailer
13 with respect to such transaction; the amount of tax collected
14 from the purchaser by the retailer on such transaction (or
15 satisfactory evidence that such tax is not due in that
16 particular instance, if that is claimed to be the fact); the
17 place and date of the sale; a sufficient identification of
18 the property sold; such other information as is required in
19 Section 5-402 of the Illinois Vehicle Code, and such other
20 information as the Department may reasonably require.
21 (b) The transaction reporting return in the case of
22 watercraft or aircraft must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 5-120 allows an
28 exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
-105- LRB9000671KDdvA
1 place and date of the sale, a sufficient identification of
2 the property sold, and such other information as the
3 Department may reasonably require.
4 (c) Such transaction reporting return shall be filed not
5 later than 20 days after the day of delivery of the item that
6 is being sold, but may be filed by the retailer at any time
7 sooner than that if he chooses to do so. The transaction
8 reporting return and tax remittance or proof of exemption
9 from the Illinois use tax may be transmitted to the
10 Department by way of the State agency with which or State
11 officer with whom the tangible personal property must be
12 titled or registered (if titling or registration is required)
13 if the Department and such agency or State officer determine
14 that this procedure will expedite the processing of
15 applications for title or registration.
16 (d) With each such transaction reporting return, the
17 retailer shall remit the proper amount of tax due (or shall
18 submit satisfactory evidence that the sale is not taxable if
19 that is the case), to the Department or its agents, whereupon
20 the Department shall issue, in the purchaser's name, a use
21 tax receipt (or a certificate of exemption if the Department
22 is satisfied that the particular sale is tax exempt) which
23 such purchaser may submit to the agency with which, or State
24 officer with whom, he must title or register the tangible
25 personal property that is involved (if titling or
26 registration is required) in support of such purchaser's
27 application for an Illinois certificate or other evidence of
28 title or registration to such tangible personal property.
29 (e) No retailer's failure or refusal to remit tax under
30 this Code precludes a user, who has paid the proper tax to
31 the retailer, from obtaining his certificate of title or
32 other evidence of title or registration (if titling or
33 registration is required) upon satisfying the Department that
34 such user has paid the proper tax (if tax is due) to the
-106- LRB9000671KDdvA
1 retailer. The Department shall adopt appropriate rules to
2 carry out the mandate of this subsection.
3 (f) If the user who would otherwise pay tax to the
4 retailer wants the transaction reporting return filed and the
5 payment of the tax or proof of exemption made to the
6 Department before the retailer is willing to take these
7 actions and such user has not paid the tax to the retailer,
8 such user may certify to the fact of such delay by the
9 retailer and may (upon the Department being satisfied of the
10 truth of such certification) transmit the information
11 required by the transaction reporting return and the
12 remittance for tax or proof of exemption directly to the
13 Department and obtain his tax receipt or exemption
14 determination, in which event the transaction reporting
15 return and tax remittance (if a tax payment was required)
16 shall be credited by the Department to the proper retailer's
17 account with the Department, but without the 2.1% or 1.75%
18 discount provided for in Section 50-110 being allowed. When
19 the user pays the tax directly to the Department, he shall
20 pay the tax in the same amount and in the same form in which
21 it would be remitted if the tax had been remitted to the
22 Department by the retailer.
23 Section 50-95. Annual information return.
24 (a) The Department may, upon separate written notice to
25 a taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the taxpayer's last
31 federal income tax return. If the total receipts of the
32 business as reported in the federal income tax return do not
33 agree with the gross receipts reported to the Department of
-107- LRB9000671KDdvA
1 Revenue for the same period, the taxpayer shall attach to his
2 annual return a schedule showing a reconciliation of the 2
3 amounts and the reasons for the difference. The taxpayer's
4 annual return to the Department shall also disclose the cost
5 of goods sold by the taxpayer during the year covered by such
6 return, opening and closing inventories of such goods for
7 such year, cost of goods used from stock or taken from stock
8 and given away by the taxpayer during such year, payroll
9 information of the taxpayer's business during such year and
10 any additional reasonable information which the Department
11 deems would be helpful in determining the accuracy of the
12 monthly, quarterly or annual returns filed by such taxpayer
13 as provided for in Sections 50-5 through 50-140.
14 (b) If the annual information return required by this
15 Section is not filed when and as required, the taxpayer shall
16 be liable as follows:
17 (i) Until January 1, 1994, the taxpayer shall be
18 liable for a penalty equal to 1/6 of 1% of the tax due
19 from such taxpayer under this Code during the period to
20 be covered by the annual return for each month or
21 fraction of a month until such return is filed as
22 required, the penalty to be assessed and collected in the
23 same manner as any other penalty provided for in this
24 Code.
25 (ii) On and after January 1, 1994, the taxpayer
26 shall be liable for a penalty as described in Section 3-4
27 of the Uniform Penalty and Interest Act.
28 (c) The chief executive officer, proprietor, owner or
29 highest ranking manager shall sign the annual return to
30 certify the accuracy of the information contained therein.
31 Any person who willfully signs the annual return containing
32 false or inaccurate information shall be guilty of perjury
33 and punished accordingly. The annual return form prescribed
34 by the Department shall include a warning that the person
-108- LRB9000671KDdvA
1 signing the return may be liable for perjury.
2 (d) The provisions of this Section concerning the filing
3 of an annual information return do not apply to a retailer or
4 serviceman who is not required to file an income tax return
5 with the United States government.
6 Section 50-100. Electronic funds transfer.
7 (a) Beginning October 1, 1993, a taxpayer who has an
8 average monthly tax liability of $150,000 or more shall make
9 all payments required by rules of the Department by
10 electronic funds transfer. Beginning October 1, 1994, a
11 taxpayer who has an average monthly tax liability of $100,000
12 or more shall make all payments required by rules of the
13 Department by electronic funds transfer. Beginning October
14 1, 1995, a taxpayer who has an average monthly tax liability
15 of $50,000 or more shall make all payments required by rules
16 of the Department by electronic funds transfer. The term
17 "average monthly tax liability" shall be the sum of the
18 taxpayer's liabilities under this Code, and under all other
19 State and local occupation and use tax laws administered by
20 the Department, for the immediately preceding calendar year
21 divided by 12.
22 (b) Before August 1 of each year beginning in 1993, the
23 Department shall notify all taxpayers required to make
24 payments by electronic funds transfer. All taxpayers
25 required to make payments by electronic funds transfer shall
26 make those payments for a minimum of one year beginning on
27 October 1.
28 (c) Any taxpayer not required to make payments by
29 electronic funds transfer may make payments by electronic
30 funds transfer with the permission of the Department.
31 (d) All taxpayers required to make payment by electronic
32 funds transfer and any taxpayers authorized to voluntarily
33 make payments by electronic funds transfer shall make those
-109- LRB9000671KDdvA
1 payments in the manner authorized by the Department.
2 (e) The Department shall adopt such rules as are
3 necessary to effectuate a program of electronic funds
4 transfer and the requirements of Sections 50-5 through
5 50-140.
6 Section 50-105. Refunds.
7 (a) Refunds made by the seller during the preceding
8 return period to purchasers, on account of tangible personal
9 property returned to the seller, shall be allowed as a
10 deduction under subdivision 5 of his monthly or quarterly
11 return, as the case may be, in case the seller had
12 theretofore included the receipts from the sale of such
13 tangible personal property in a return filed by him and had
14 paid the tax imposed by Article 10 with respect to such
15 receipts.
16 (b) For purposes of the use tax, the service occupation
17 tax, and the service use tax, where a retailer or serviceman
18 collects the tax with respect to the selling price of
19 property which he sells and the purchaser thereafter returns
20 such property and the retailer or serviceman refunds the
21 selling price thereof to the purchaser, such retailer or
22 serviceman shall also refund, to the purchaser, the tax so
23 collected from the purchaser. When filing his return for the
24 period in which he refunds such tax to the purchaser, the
25 retailer or serviceman may deduct the amount of the tax so
26 refunded by him to the purchaser from any other service use
27 tax, service occupation tax, retailers' occupation tax or use
28 tax which such retailer or serviceman may be required to pay
29 or remit to the Department, as shown by such return, provided
30 that the amount of the tax to be deducted was previously
31 remitted to the Department by such retailer or serviceman. If
32 the retailer or serviceman has not previously remitted the
33 amount of such tax to the Department, he shall be entitled to
-110- LRB9000671KDdvA
1 no deduction hereunder upon refunding such tax to the
2 purchaser.
3 Section 50-110. Payment of tax by retailer or
4 serviceman.
5 (a) Except as provided in Sections 50-5 through 50-140,
6 the retailer filing the return under Sections 50-5 through
7 50-140 shall, at the time of filing such return, pay to the
8 Department the amount of tax imposed by this Code less a
9 discount of 2.1% prior to January 1, 1990 and 1.75% on and
10 after January 1, 1990, or $5 per calendar year, whichever is
11 greater, which is allowed to reimburse the retailer for the
12 expenses incurred in keeping records, preparing and filing
13 returns, remitting the tax and supplying data to the
14 Department on request. Any prepayment made pursuant to
15 Section 10-30 shall be included in the amount on which such
16 2.1% or 1.75% discount is computed.
17 (b) For purposes of the use tax, the service occupation
18 tax, and the service use tax, each retailer or serviceman
19 required or authorized to collect the taxes imposed by
20 Articles 15, 20, or 25 shall pay to the Department the amount
21 of such tax (except as otherwise provided) at the time when
22 he is required to file his return for the period during which
23 such tax was collected, less a discount of 2.1% prior to
24 January 1, 1990, and 1.75% on and after January 1, 1990, or
25 $5 per calendar year, whichever is greater, which is allowed
26 to reimburse the retailer or serviceman for expenses incurred
27 in collecting the tax, keeping records, preparing and filing
28 returns, remitting the tax and supplying data to the
29 Department on request. For purposes of the use tax, this
30 subsection shall not apply to motor vehicles, watercraft,
31 aircraft, and trailers that are required to be registered
32 with an agency of this State.
33 (c) In the case of retailers who report and pay the tax
-111- LRB9000671KDdvA
1 on a transaction by transaction basis, as provided in
2 Sections 50-5 through 50-140, such discount shall be taken
3 with each such tax remittance instead of when such retailer
4 files his periodic return.
5 (d) For purposes of the use tax, a retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by Article 10, with respect to the sale of the same property.
9 (e) For purposes of the service use tax, a serviceman
10 need not remit that part of any tax collected by him to the
11 extent that he is required to pay and does pay the tax
12 imposed by Article 20 with respect to his sale of service
13 involving the incidental transfer by him of the same
14 property.
15 Section 50-115. Conditional sales contract. For
16 purposes of the use tax and the service occupation tax, where
17 such tangible personal property is sold under a conditional
18 sales contract, or under any other form of sale wherein the
19 payment of the principal sum, or a part thereof, is extended
20 beyond the close of the period for which the return is filed,
21 the retailer or serviceman, in collecting the tax (except,
22 for purposes of the use tax only, as to motor vehicles,
23 watercraft, aircraft, and trailers that are required to be
24 registered with an agency of this State), may collect for
25 each tax return period, only the tax applicable to that part
26 of the selling price actually received during such tax return
27 period.
28 Section 50-120. Quarter-monthly payments.
29 (a) If the taxpayer's average monthly tax liability to
30 the Department under this Code excluding any liability for
31 prepaid sales tax to be remitted in accordance with Section
32 10-30, was $10,000 or more during the preceding 4 complete
-112- LRB9000671KDdvA
1 calendar quarters, he shall file a return with the Department
2 each month by the 20th day of the month next following the
3 month during which such tax liability is incurred and shall
4 make payments to the Department on or before the 7th, 15th,
5 22nd and last day of the month during which such liability is
6 incurred. If the month during which such tax liability is
7 incurred began prior to January 1, 1985, each payment shall
8 be in an amount equal to 1/4 of the taxpayer's actual
9 liability for the month or an amount set by the Department
10 not to exceed 1/4 of the average monthly liability of the
11 taxpayer to the Department for the preceding 4 complete
12 calendar quarters (excluding the month of highest liability
13 and the month of lowest liability in such 4 quarter period).
14 If the month during which such tax liability is incurred
15 begins on or after January 1, 1985 and prior to January 1,
16 1987, each payment shall be in an amount equal to 22.5% of
17 the taxpayer's actual liability for the month or 27.5% of the
18 taxpayer's liability for the same calendar month of the
19 preceding year. If the month during which such tax liability
20 is incurred begins on or after January 1, 1987 and prior to
21 January 1, 1988, each payment shall be in an amount equal to
22 22.5% of the taxpayer's actual liability for the month or
23 26.25% of the taxpayer's liability for the same calendar
24 month of the preceding year. If the month during which such
25 tax liability is incurred begins on or after January 1, 1988,
26 and prior to January 1, 1989, or begins on or after January
27 1, 1996, each payment shall be in an amount equal to 22.5% of
28 the taxpayer's actual liability for the month or 25% of the
29 taxpayer's liability for the same calendar month of the
30 preceding year. If the month during which such tax liability
31 is incurred begins on or after January 1, 1989, and prior to
32 January 1, 1996, each payment shall be in an amount equal to
33 22.5% of the taxpayer's actual liability for the month or 25%
34 of the taxpayer's liability for the same calendar month of
-113- LRB9000671KDdvA
1 the preceding year or 100% of the taxpayer's actual liability
2 for the quarter monthly reporting period. The amount of such
3 quarter monthly payments shall be credited against the final
4 tax liability of the taxpayer's return for that month. Once
5 applicable, the requirement of the making of quarter monthly
6 payments to the Department by taxpayers having an average
7 monthly tax liability of $10,000 or more as determined in the
8 manner provided above shall continue until such taxpayer's
9 average monthly liability to the Department during the
10 preceding 4 complete calendar quarters (excluding the month
11 of highest liability and the month of lowest liability) is
12 less than $9,000, or until such taxpayer's average monthly
13 liability to the Department as computed for each calendar
14 quarter of the 4 preceding complete calendar quarter period
15 is less than $10,000. However, if a taxpayer can show the
16 Department that a substantial change in the taxpayer's
17 business has occurred which causes the taxpayer to anticipate
18 that his average monthly tax liability for the reasonably
19 foreseeable future will fall below $10,000, then such
20 taxpayer may petition the Department for a change in such
21 taxpayer's reporting status. The Department shall change
22 such taxpayer's reporting status unless it finds that such
23 change is seasonal in nature and not likely to be long term.
24 If any such quarter monthly payment is not paid at the time
25 or in the amount required by this Section, then the
26 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
27 by 2.1% or 1.75% of the difference between the minimum amount
28 due as a payment and the amount of such quarter monthly
29 payment actually and timely paid, and the taxpayer shall be
30 liable for penalties and interest on such difference, except
31 insofar as the taxpayer has previously made payments for that
32 month to the Department in excess of the minimum payments
33 previously due as provided in Sections 50-5 through 50-140.
34 The Department shall make reasonable rules and regulations to
-114- LRB9000671KDdvA
1 govern the quarter monthly payment amount and quarter monthly
2 payment dates for taxpayers who file on other than a calendar
3 monthly basis.
4 (b) Without regard to whether a taxpayer is required to
5 make quarter monthly payments as specified above, any
6 taxpayer who is required by Section 10-30 to collect and
7 remit prepaid taxes and has collected prepaid taxes which
8 average in excess of $25,000 per month during the preceding 2
9 complete calendar quarters, shall file a return with the
10 Department as required by Section 10-40 and shall make
11 payments to the Department on or before the 7th, 15th, 22nd
12 and last day of the month during which such liability is
13 incurred. If the month during which such tax liability is
14 incurred began prior to the effective date of this amendatory
15 Act of 1985, each payment shall be in an amount not less than
16 22.5% of the taxpayer's actual liability under Section 10-30.
17 If the month during which such tax liability is incurred
18 begins on or after January 1, 1986, each payment shall be in
19 an amount equal to 22.5% of the taxpayer's actual liability
20 for the month or 27.5% of the taxpayer's liability for the
21 same calendar month of the preceding calendar year. If the
22 month during which such tax liability is incurred begins on
23 or after January 1, 1987, each payment shall be in an amount
24 equal to 22.5% of the taxpayer's actual liability for the
25 month or 26.25% of the taxpayer's liability for the same
26 calendar month of the preceding year. The amount of such
27 quarter monthly payments shall be credited against the final
28 tax liability of the taxpayer's return for that month filed
29 under Sections 50-5 through 50-140 or Section 10-40, as the
30 case may be. Once applicable, the requirement of the making
31 of quarter monthly payments to the Department pursuant to
32 this subsection shall continue until such taxpayer's average
33 monthly prepaid tax collections during the preceding 2
34 complete calendar quarters is $25,000 or less. If any such
-115- LRB9000671KDdvA
1 quarter monthly payment is not paid at the time or in the
2 amount required, the taxpayer shall be liable for penalties
3 and interest on such difference, except insofar as the
4 taxpayer has previously made payments for that month in
5 excess of the minimum payments previously due.
6 Section 50-125. Credit memorandum.
7 (a) If any payment provided for in Sections 50-5 through
8 50-140 exceeds the taxpayer's liabilities under this Code, as
9 shown on an original monthly return, the Department shall, if
10 requested by the taxpayer, issue to the taxpayer a credit
11 memorandum no later than 30 days after the date of payment.
12 The credit evidenced by such credit memorandum may be
13 assigned by the taxpayer to a similar taxpayer under this
14 Code, in accordance with reasonable rules and regulations to
15 be prescribed by the Department. If no such request is made,
16 the taxpayer may credit such excess payment against tax
17 liability subsequently to be remitted to the Department under
18 this Code, in accordance with reasonable rules and
19 regulations prescribed by the Department.
20 (b) For purposes of the use tax, if any such payment
21 provided for in Sections 50-5 through 50-140 exceeds the
22 taxpayer's liabilities under this Code, as shown by an
23 original monthly return, the Department shall issue to the
24 taxpayer a credit memorandum no later than 30 days after the
25 date of payment, which memorandum may be submitted by the
26 taxpayer to the Department in payment of tax liability
27 subsequently to be remitted by the taxpayer to the Department
28 or be assigned by the taxpayer to a similar taxpayer under
29 this Code, in accordance with reasonable rules and
30 regulations to be prescribed by the Department, except that
31 if such excess payment is shown on an original monthly return
32 and is made after December 31, 1986, no credit memorandum
33 shall be issued, unless requested by the taxpayer. If no
-116- LRB9000671KDdvA
1 such request is made, the taxpayer may credit such excess
2 payment against tax liability subsequently to be remitted by
3 the taxpayer to the Department under this Code, in accordance
4 with reasonable rules and regulations prescribed by the
5 Department.
6 (c) If the Department subsequently determines that all
7 or any part of the credit taken was not actually due to the
8 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount
9 shall be reduced by 2.1% or 1.75% of the difference between
10 the credit taken and that actually due, and the taxpayer
11 shall be liable for penalties and interest on such
12 difference.
13 Section 50-130. Credit for motor fuel retailer. If a
14 retailer of motor fuel is entitled to a credit under Section
15 10-30 which exceeds the taxpayer's liability to the
16 Department under Article 10 for the month which the taxpayer
17 is filing a return, the Department shall issue the taxpayer a
18 credit memorandum for the excess.
19 Section 50-135. Payment by manufacturers, importers, and
20 wholesalers. For greater simplicity of administration,
21 manufacturers, importers and wholesalers whose products are
22 sold at retail in Illinois by numerous retailers or
23 servicemen, and who wish to do so, may assume the
24 responsibility for accounting and paying to the Department
25 all tax accruing under this Code with respect to such sales,
26 if the retailers or servicemen who are affected do not make
27 written objection to the Department to this arrangement.
28 Section 50-140. Fair reports.
29 (a) Any person who promotes, organizes, provides retail
30 selling space for concessionaires or other types of sellers
31 at the Illinois State Fair, DuQuoin State Fair, county fairs,
-117- LRB9000671KDdvA
1 local fairs, art shows, flea markets and similar exhibitions
2 or events, including any transient merchant as defined by
3 Section 2 of the Transient Merchant Act of 1987, is required
4 to file a report with the Department providing the name of
5 the merchant's business, the name of the person or persons
6 engaged in merchant's business, the permanent address and
7 Illinois Retailers Occupation Tax Registration Number of the
8 merchant, the dates and location of the event and other
9 reasonable information that the Department may require. The
10 report must be filed not later than the 20th day of the month
11 next following the month during which the event with retail
12 sales was held. Any person who fails to file a report
13 required by this Section commits a business offense and is
14 subject to a fine not to exceed $250.
15 (b) Any person engaged in the business of selling
16 tangible personal property at retail as a concessionaire or
17 other type of seller at the Illinois State Fair, county
18 fairs, art shows, flea markets and similar exhibitions or
19 events, or any transient merchants, as defined by Section 2
20 of the Transient Merchant Act of 1987, may be required to
21 make a daily report of the amount of such sales to the
22 Department and to make a daily payment of the full amount of
23 tax due. The Department shall impose this requirement when
24 it finds that there is a significant risk of loss of revenue
25 to the State at such an exhibition or event. Such a finding
26 shall be based on evidence that a substantial number of
27 concessionaires or other sellers who are not residents of
28 Illinois will be engaging in the business of selling tangible
29 personal property at retail at the exhibition or event, or
30 other evidence of a significant risk of loss of revenue to
31 the State. The Department shall notify concessionaires and
32 other sellers affected by the imposition of this requirement.
33 In the absence of notification by the Department, the
34 concessionaires and other sellers shall file their returns as
-118- LRB9000671KDdvA
1 otherwise required in Sections 50-5 through 50-140.
2 Section 50-145. Examination and correction of return.
3 The provisions of this Section shall apply to the retailers'
4 occupation tax, the use tax, the service occupation tax, and
5 the service use tax, except that for purposes of the use tax
6 and the service occupation tax, the time limitation
7 provisions shall run from the date when the tax is due rather
8 than from the date when gross receipts are received, and for
9 purposes of the service use tax, the time limitations
10 provisions shall run from the date when gross receipts are
11 received. As soon as practicable after any return is filed,
12 the Department shall examine such return and shall, if
13 necessary, correct such return according to its best judgment
14 and information. If the correction of a return results in an
15 amount of tax that is understated on the taxpayer's return
16 due to a mathematical error, the Department shall notify the
17 taxpayer that the amount of tax in excess of that shown on
18 the return is due and has been assessed. The term
19 "mathematical error" means arithmetic errors or incorrect
20 computations on the return or supporting schedules. No such
21 notice of additional tax due shall be issued on and after
22 each July 1 and January 1 covering gross receipts received
23 during any month or period of time more than 3 years prior to
24 such July 1 and January 1, respectively. Such notice of
25 additional tax due shall not be considered a notice of tax
26 liability nor shall the taxpayer have any right of protest.
27 In the event that the return is corrected for any reason
28 other than a mathematical error, any return so corrected by
29 the Department shall be prima facie correct and shall be
30 prima facie evidence of the correctness of the amount of tax
31 due, as shown therein. In correcting transaction by
32 transaction reporting returns provided for in Sections 50-5
33 through 50-140 of this Code, it shall be permissible for the
-119- LRB9000671KDdvA
1 Department to show a single corrected return figure for any
2 given period of a calendar month instead of having to correct
3 each transaction by transaction return form individually and
4 having to show a corrected return figure for each of such
5 transaction by transaction return forms. In making a
6 correction of transaction by transaction, monthly or
7 quarterly returns covering a period of 6 months or more, it
8 shall be permissible for the Department to show a single
9 corrected return figure for any given 6-month period.
10 Instead of requiring the person filing such return to
11 file an amended return, the Department may simply notify him
12 of the correction or corrections it has made.
13 Proof of such correction by the Department may be made at
14 any hearing before the Department or in any legal proceeding
15 by a reproduced copy or computer print-out of the
16 Department's record relating thereto in the name of the
17 Department under the certificate of the Director of Revenue.
18 If reproduced copies of the Department's records are offered
19 as proof of such correction, the Director must certify that
20 those copies are true and exact copies of records on file
21 with the Department. If computer print-outs of the
22 Department's records are offered as proof of such correction,
23 the Director must certify that those computer print-outs are
24 true and exact representations of records properly entered
25 into standard electronic computing equipment, in the regular
26 course of the Department's business, at or reasonably near
27 the time of the occurrence of the facts recorded, from
28 trustworthy and reliable information. Such certified
29 reproduced copy or certified computer print-out shall without
30 further proof, be admitted into evidence before the
31 Department or in any legal proceeding and shall be prima
32 facie proof of the correctness of the amount of tax due, as
33 shown therein.
34 If the tax computed upon the basis of the gross receipts
-120- LRB9000671KDdvA
1 as fixed by the Department is greater than the amount of tax
2 due under the return or returns as filed, the Department
3 shall (or if the tax or any part thereof that is admitted to
4 be due by a return or returns, whether filed on time or not,
5 is not paid, the Department may) issue the taxpayer a notice
6 of tax liability for the amount of tax claimed by the
7 Department to be due, together with a penalty in an amount
8 determined in accordance with Section 3-3 of the Uniform
9 Penalty and Interest Act. Provided, that if the incorrectness
10 of any return or returns as determined by the Department is
11 due to negligence or fraud, the penalty shall be in an amount
12 determined in accordance with Section 3-5 or Section 3-6 of
13 the Uniform Penalty and Interest Act, as the case may be. If
14 the notice of tax liability is not based on a correction of
15 the taxpayer's return or returns, but is based on the
16 taxpayer's failure to pay all or a part of the tax admitted
17 by his return or returns (whether filed on time or not) to be
18 due, such notice of tax liability shall be prima facie
19 correct and shall be prima facie evidence of the correctness
20 of the amount of tax due, as shown therein.
21 Proof of such notice of tax liability by the Department
22 may be made at any hearing before the Department or in any
23 legal proceeding by a reproduced copy of the Department's
24 record relating thereto in the name of the Department under
25 the certificate of the Director of Revenue. Such reproduced
26 copy shall without further proof, be admitted into evidence
27 before the Department or in any legal proceeding and shall be
28 prima facie proof of the correctness of the amount of tax
29 due, as shown therein.
30 If the person filing any return dies or becomes a person
31 under legal disability at any time before the Department
32 issues its notice of tax liability, such notice shall be
33 issued to the administrator, executor or other legal
34 representative, as such, of such person.
-121- LRB9000671KDdvA
1 Except in case of a fraudulent return, or in the case of
2 an amended return (where a notice of tax liability may be
3 issued on or after each January 1 and July 1 for an amended
4 return filed not more than 3 years prior to such January 1 or
5 July 1, respectively), no notice of tax liability shall be
6 issued on and after each January 1 and July 1 covering gross
7 receipts received during any month or period of time more
8 than 3 years prior to such January 1 and July 1,
9 respectively. If, before the expiration of the time
10 prescribed in this Section for the issuance of a notice of
11 tax liability, both the Department and the taxpayer have
12 consented in writing to its issuance after such time, such
13 notice may be issued at any time prior to the expiration of
14 the period agreed upon. The period so agreed upon may be
15 extended by subsequent agreements in writing made before the
16 expiration of the period previously agreed upon. The
17 foregoing limitations upon the issuance of a notice of tax
18 liability shall not apply to the issuance of a notice of tax
19 liability with respect to any period of time prior thereto in
20 cases where the Department has, within the period of
21 limitation then provided, notified the person making the
22 return of a notice of tax liability even though such return,
23 with which the tax that was shown by such return to be due
24 was paid when the return was filed, had not been corrected by
25 the Department in the manner required herein prior to the
26 issuance of such notice, but in no case shall the amount of
27 any such notice of tax liability for any period otherwise
28 barred by this Code exceed for such period the amount shown
29 in the notice of tax liability theretofore issued.
30 If, when a tax or penalty under this Code becomes due and
31 payable, the person alleged to be liable therefor is out of
32 the State, the notice of tax liability may be issued within
33 the times herein limited after his coming into or return to
34 the State; and if, after the tax or penalty under this Code
-122- LRB9000671KDdvA
1 becomes due and payable, the person alleged to be liable
2 therefor departs from and remains out of the State, the time
3 of his or her absence is no part of the time limited for the
4 issuance of the notice of tax liability; but the foregoing
5 provisions concerning absence from the State shall not apply
6 to any case in which, at the time when a tax or penalty
7 becomes due under this Code, the person allegedly liable
8 therefor is not a resident of this State.
9 The time limitation period on the Department's right to
10 issue a notice of tax liability shall not run during any
11 period of time in which the order of any court has the effect
12 of enjoining or restraining the Department from issuing the
13 notice of tax liability.
14 If such person or legal representative shall within 60
15 days after such notice of tax liability file a protest to
16 said notice of tax liability and request a hearing thereon,
17 the Department shall give notice to such person or legal
18 representative of the time and place fixed for such hearing
19 and shall hold a hearing in conformity with the provisions of
20 this Code, and pursuant thereto shall issue to such person or
21 legal representative a final assessment for the amount found
22 to be due as a result of such hearing.
23 If a protest to the notice of tax liability and a request
24 for a hearing thereon is not filed within 60 days after such
25 notice, such notice of tax liability shall become final
26 without the necessity of a final assessment being issued and
27 shall be deemed to be a final assessment.
28 After the issuance of a final assessment, or a notice of
29 tax liability which becomes final without the necessity of
30 actually issuing a final assessment as hereinbefore provided,
31 the Department, at any time before such assessment is reduced
32 to judgment, may (subject to rules of the Department) grant a
33 rehearing (or grant departmental review and hold an original
34 hearing if no previous hearing in the matter has been held)
-123- LRB9000671KDdvA
1 upon the application of the person aggrieved. Pursuant to
2 such hearing or rehearing, the Department shall issue a
3 revised final assessment to such person or his legal
4 representative for the amount found to be due as a result of
5 such hearing or rehearing.
6 Section 50-150. Failure to make return.
7 The provisions of this Section shall apply to the
8 retailers' occupation tax, the use tax, the service
9 occupation tax, and the service use tax, except that for
10 purposes of the use tax, the service occupation tax, and the
11 service use tax, the time limitation provisions on the
12 issuance of notices of tax liability shall run from the date
13 when the tax is due rather than from the date when gross
14 receipts are received, and for purposes of the use tax and
15 the service use tax, in the case of a failure to file a
16 return required by this Code, no notice of tax liability
17 shall be issued on and after each July 1 and January 1
18 covering tax due with that return during any month or period
19 more than 6 years before that July 1 or January 1,
20 respectively. In case any person engaged in the business of
21 selling tangible personal property at retail fails to file a
22 return when and as herein required, but thereafter, prior to
23 the Department's issuance of a notice of tax liability under
24 this Section, files a return and pays the tax, he shall also
25 pay a penalty in an amount determined in accordance with
26 Section 3-3 of the Uniform Penalty and Interest Act.
27 In case any person engaged in the business of selling
28 tangible personal property at retail files the return at the
29 time required by this Code but fails to pay the tax, or any
30 part thereof, when due, a penalty in an amount determined in
31 accordance with Section 3-3 of the Uniform Penalty and
32 Interest Act shall be added thereto.
33 In case any person engaged in the business of selling
-124- LRB9000671KDdvA
1 tangible personal property at retail fails to file a return
2 when and as herein required, but thereafter, prior to the
3 Department's issuance of a notice of tax liability under this
4 Section, files a return but fails to pay the entire tax, a
5 penalty in an amount determined in accordance with Section
6 3-3 of the Uniform Penalty and Interest Act shall be added
7 thereto.
8 In case any person engaged in the business of selling
9 tangible personal property at retail fails to file a return,
10 the Department shall determine the amount of tax due from him
11 according to its best judgment and information, which amount
12 so fixed by the Department shall be prima facie correct and
13 shall be prima facie evidence of the correctness of the
14 amount of tax due, as shown in such determination. In making
15 any such determination of tax due, it shall be permissible
16 for the Department to show a figure that represents the tax
17 due for any given period of 6 months instead of showing the
18 amount of tax due for each month separately. Proof of such
19 determination by the Department may be made at any hearing
20 before the Department or in any legal proceeding by a
21 reproduced copy or computer print-out of the Department's
22 record relating thereto in the name of the Department under
23 the certificate of the Director of Revenue. If reproduced
24 copies of the Department's records are offered as proof of
25 such determination, the Director must certify that those
26 copies are true and exact copies of records on file with the
27 Department. If computer print-outs of the Department's
28 records are offered as proof of such determination, the
29 Director must certify that those computer print-outs are true
30 and exact representations of records properly entered into
31 standard electronic computing equipment, in the regular
32 course of the Department's business, at or reasonably near
33 the time of the occurrence of the facts recorded, from
34 trustworthy and reliable information. Such certified
-125- LRB9000671KDdvA
1 reproduced copy or certified computer print-out shall,
2 without further proof, be admitted into evidence before the
3 Department or in any legal proceeding and shall be prima
4 facie proof of the correctness of the amount of tax due, as
5 shown therein. The Department shall issue the taxpayer a
6 notice of tax liability for the amount of tax claimed by the
7 Department to be due, together with a penalty of 30% thereof.
8 However, where the failure to file any tax return
9 required under this Code on the date prescribed therefor
10 (including any extensions thereof), is shown to be
11 unintentional and nonfraudulent and has not occurred in the 2
12 years immediately preceding the failure to file on the
13 prescribed date or is due to other reasonable cause the
14 penalties imposed by this Code shall not apply.
15 If such person or the legal representative of such person
16 files, within 60 days after such notice, a protest to such
17 notice of tax liability and requests a hearing thereon, the
18 Department shall give notice to such person or the legal
19 representative of such person of the time and place fixed for
20 such hearing, and shall hold a hearing in conformity with the
21 provisions of this Code, and pursuant thereto shall issue a
22 final assessment to such person or to the legal
23 representative of such person for the amount found to be due
24 as a result of such hearing.
25 If a protest to the notice of tax liability and a request
26 for a hearing thereon is not filed within 60 days after such
27 notice, such notice of tax liability shall become final
28 without the necessity of a final assessment being issued and
29 shall be deemed to be a final assessment.
30 After the issuance of a final assessment, or a notice of
31 tax liability which becomes final without the necessity of
32 actually issuing a final assessment as hereinbefore provided,
33 the Department, at any time before such assessment is reduced
34 to judgment, may (subject to rules of the Department) grant a
-126- LRB9000671KDdvA
1 rehearing (or grant departmental review and hold an original
2 hearing if no previous hearing in the matter has been held)
3 upon the application of the person aggrieved. Pursuant to
4 such hearing or rehearing, the Department shall issue a
5 revised final assessment to such person or his legal
6 representative for the amount found to be due as a result of
7 such hearing or rehearing.
8 Except in case of failure to file a return, or with the
9 consent of the person to whom the notice of tax liability is
10 to be issued, no notice of tax liability shall be issued on
11 and after each July 1 and January 1 covering gross receipts
12 received during any month or period of time more than 3 years
13 prior to such July 1 and January 1, respectively, except that
14 if a return is not filed at the required time, a notice of
15 tax liability may be issued not later than 3 years after the
16 time the return is filed. The foregoing limitations upon the
17 issuance of a notice of tax liability shall not apply to the
18 issuance of any such notice with respect to any period of
19 time prior thereto in cases where the Department has, within
20 the period of limitation then provided, notified a person of
21 the amount of tax computed even though the Department had not
22 determined the amount of tax due from such person in the
23 manner required herein prior to the issuance of such notice,
24 but in no case shall the amount of any such notice of tax
25 liability for any period otherwise barred by this Code exceed
26 for such period the amount shown in the notice theretofore
27 issued.
28 If, when a tax or penalty under this Code becomes due and
29 payable, the person alleged to be liable therefor is out of
30 the State, the notice of tax liability may be issued within
31 the times herein limited after his or her coming into or
32 return to the State; and if, after the tax or penalty under
33 this Code becomes due and payable, the person alleged to be
34 liable therefor departs from and remains out of the State,
-127- LRB9000671KDdvA
1 the time of his or her absence is no part of the time limited
2 for the issuance of the notice of tax liability; but the
3 foregoing provisions concerning absence from the State shall
4 not apply to any case in which, at the time when a tax or
5 penalty becomes due under this Code, the person allegedly
6 liable therefor is not a resident of this State.
7 The time limitation period on the Department's right to
8 issue a notice of tax liability shall not run during any
9 period of time in which the order of any court has the effect
10 of enjoining or restraining the Department from issuing the
11 notice of tax liability.
12 In case of failure to pay the tax, or any portion
13 thereof, or any penalty provided for in this Code, or
14 interest, when due, the Department may bring suit to recover
15 the amount of such tax, or portion thereof, or penalty or
16 interest; or, if the taxpayer has died or become a person
17 under legal disability, may file a claim therefor against his
18 estate; provided that no such suit with respect to any tax,
19 or portion thereof, or penalty, or interest shall be
20 instituted more than 2 years after the date any proceedings
21 in court for review thereof have terminated or the time for
22 the taking thereof has expired without such proceedings being
23 instituted, except with the consent of the person from whom
24 such tax or penalty or interest is due; nor, except with such
25 consent, shall such suit be instituted more than 2 years
26 after the date any return is filed with the Department in
27 cases where the return constitutes the basis for the suit for
28 unpaid tax, or portion thereof, or penalty provided for in
29 this Code, or interest: provided that the time limitation
30 period on the Department's right to bring any such suit shall
31 not run during any period of time in which the order of any
32 court has the effect of enjoining or restraining the
33 Department from bringing such suit.
34 After the expiration of the period within which the
-128- LRB9000671KDdvA
1 person assessed may file an action for judicial review under
2 the Administrative Review Law without such an action being
3 filed, a certified copy of the final assessment or revised
4 final assessment of the Department may be filed with the
5 Circuit Court of the county in which the taxpayer has his
6 principal place of business, or of Sangamon County in those
7 cases in which the taxpayer does not have his principal place
8 of business in this State. The certified copy of the final
9 assessment or revised final assessment shall be accompanied
10 by a certification which recites facts that are sufficient to
11 show that the Department complied with the jurisdictional
12 requirements of the Code in arriving at its final assessment
13 or its revised final assessment and that the taxpayer had his
14 opportunity for an administrative hearing and for judicial
15 review, whether he availed himself or herself of either or
16 both of these opportunities or not. If the court is satisfied
17 that the Department complied with the jurisdictional
18 requirements of the Code in arriving at its final assessment
19 or its revised final assessment and that the taxpayer had his
20 opportunity for an administrative hearing and for judicial
21 review, whether he availed himself of either or both of these
22 opportunities or not, the court shall render judgment in
23 favor of the Department and against the taxpayer for the
24 amount shown to be due by the final assessment or the revised
25 final assessment, plus any interest which may be due, and
26 such judgment shall be entered in the judgment docket of the
27 court. Such judgment shall bear the rate of interest as set
28 by the Uniform Penalty and Interest Act, but otherwise shall
29 have the same effect as other judgments. The judgment may be
30 enforced, and all laws applicable to sales for the
31 enforcement of a judgment shall be applicable to sales made
32 under such judgments. The Department shall file the certified
33 copy of its assessment, as herein provided, with the Circuit
34 Court within 2 years after such assessment becomes final
-129- LRB9000671KDdvA
1 except when the taxpayer consents in writing to an extension
2 of such filing period, and except that the time limitation
3 period on the Department's right to file the certified copy
4 of its assessment with the Circuit Court shall not run during
5 any period of time in which the order of any court has the
6 effect of enjoining or restraining the Department from filing
7 such certified copy of its assessment with the Circuit Court.
8 If, when the cause of action for a proceeding in court
9 accrues against a person, he or she is out of the State, the
10 action may be commenced within the times herein limited,
11 after his or her coming into or return to the State; and if,
12 after the cause of action accrues, he or she departs from and
13 remains out of the State, the time of his or her absence is
14 no part of the time limited for the commencement of the
15 action; but the foregoing provisions concerning absence from
16 the State shall not apply to any case in which, at the time
17 the cause of action accrues, the party against whom the cause
18 of action accrues is not a resident of this State. The time
19 within which a court action is to be commenced by the
20 Department hereunder shall not run from the date the taxpayer
21 files a petition in bankruptcy under the Federal Bankruptcy
22 Act until 30 days after notice of termination or expiration
23 of the automatic stay imposed by the Federal Bankruptcy Act.
24 No claim shall be filed against the estate of any
25 deceased person or any person under legal disability for any
26 tax or penalty or part of either, or interest, except in the
27 manner prescribed and within the time limited by the Probate
28 Act of 1975.
29 The collection of tax or penalty or interest by any means
30 provided for herein shall not be a bar to any prosecution
31 under this Code.
32 In addition to any penalty provided for in this Code, any
33 amount of tax which is not paid when due shall bear interest
34 at the rate and in the manner specified in Sections 3-2 and
-130- LRB9000671KDdvA
1 3-9 of the Uniform Penalty and Interest Act from the date
2 when such tax becomes past due until such tax is paid or a
3 judgment therefor is obtained by the Department. If the time
4 for making or completing an audit of a taxpayer's books and
5 records is extended with the taxpayer's consent, at the
6 request of and for the convenience of the Department, beyond
7 the date on which the statute of limitations upon the
8 issuance of a notice of tax liability by the Department
9 otherwise would run, no interest shall accrue during the
10 period of such extension or until a Notice of Tax Liability
11 is issued, whichever occurs first.
12 In addition to any other remedy provided by this Code,
13 and regardless of whether the Department is making or intends
14 to make use of such other remedy, where a corporation or
15 limited liability company registered under this Code violates
16 the provisions of this Code or of any rule or regulation
17 promulgated thereunder, the Department may give notice to the
18 Attorney General of the identity of such a corporation or
19 limited liability company and of the violations committed by
20 such a corporation or limited liability company, for such
21 action as is not already provided for by this Code and as the
22 Attorney General may deem appropriate.
23 If the Department determines that an amount of tax or
24 penalty or interest was incorrectly assessed, whether as the
25 result of a mistake of fact or an error of law, the
26 Department shall waive the amount of tax or penalty or
27 interest that accrued due to the incorrect assessment.
28 Section 50-155. Requirement to file return.
29 (a) For purposes of the use tax, except as to motor
30 vehicles and aircraft, when tangible personal property is
31 purchased from a retailer for use in this State by a
32 purchaser who did not pay the tax imposed by Article 15 to
33 the retailer, and who does not file returns with the
-131- LRB9000671KDdvA
1 Department as a retailer under Sections 50-5 through 50-140
2 of this Code, such purchaser (by the last day of the month
3 following the calendar month in which such purchaser makes
4 any payment upon the selling price of such property) shall,
5 except as provided in this Section, file a return with the
6 Department and pay the tax upon that portion of the selling
7 price so paid by the purchaser during the preceding calendar
8 month. When tangible personal property is purchased by a
9 lessor, under a lease for one year or longer, executed or in
10 effect at the time of purchase to an interstate carrier for
11 hire, who did not pay the tax imposed by Article 15 to the
12 retailer, such lessor (by the last day of the month following
13 the calendar month in which such property reverts to the use
14 of such lessor) shall file a return with the Department and
15 pay the tax upon the fair market value of such property on
16 the date of such reversion. Such return shall be filed on a
17 form prescribed by the Department and shall contain such
18 information as the Department may reasonably require. Such
19 return and payment from the purchaser shall be submitted to
20 the Department sooner than the last day of the month after
21 the month in which the purchase is made to the extent that
22 that may be necessary in order to secure the title to a motor
23 vehicle or the certificate of registration for an aircraft.
24 However, if the purchaser's annual use tax liability does not
25 exceed $600, the purchaser may file the return on an annual
26 basis on or before April 15th of the year following the year
27 use tax liability was incurred.
28 In addition with respect to motor vehicles and aircraft,
29 a purchaser of such tangible personal property for use in
30 this State, who purchases such tangible personal property
31 from an out-of-state retailer, shall file with the
32 Department, upon a form to be prescribed and supplied by the
33 Department, a return for each such item of tangible personal
34 property purchased. Such return in the case of motor
-132- LRB9000671KDdvA
1 vehicles and aircraft must show the name and address of the
2 seller, the name and address of purchaser, the amount of the
3 selling price including the amount allowed by the retailer
4 for traded in property, if any; the amount allowed by the
5 retailer for the traded-in tangible personal property, if
6 any, to the extent to which Section 5-120 of this Code allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the purchaser
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance if that is claimed to be the fact); the
14 place and date of the sale, a sufficient identification of
15 the property sold, and such other information as the
16 Department may reasonably require.
17 Such return shall be filed not later than 30 days after
18 such motor vehicle or aircraft is brought into this State for
19 use.
20 The return and tax remittance or proof of exemption from
21 the tax that is imposed by Article 15 may be transmitted to
22 the Department by way of the State agency with which, or
23 State officer with whom, the tangible personal property must
24 be titled or registered (if titling or registration is
25 required) if the Department and such agency or State officer
26 determine that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such return, the purchaser shall remit the
29 proper amount of tax due (or shall submit satisfactory
30 evidence that the sale is not taxable if that is the case),
31 to the Department or its agents, whereupon the Department
32 shall issue, in the purchaser's name, a tax receipt (or a
33 certificate of exemption if the Department is satisfied that
34 the particular sale is tax exempt) which such purchaser may
-133- LRB9000671KDdvA
1 submit to the agency with which, or State officer with whom,
2 he must title or register the tangible personal property that
3 is involved (if titling or registration is required) in
4 support of such purchaser's application for an Illinois
5 certificate or other evidence of title or registration to
6 such tangible personal property.
7 (b) For purposes of the service use tax, where property
8 is acquired as an incident to the purchase of a service from
9 a serviceman for use in this State by a purchaser who did not
10 pay the tax herein imposed to the serviceman, and who does
11 not file returns with the Department as a serviceman under
12 Sections 50-5 through 50-140 of this Code, such purchaser (by
13 the last day of the month following the calendar month in
14 which such purchaser makes any payment upon the selling price
15 of such property) shall, except as hereinafter provided in
16 this Section, file a return with the Department and pay the
17 tax upon that portion of the selling price so paid by the
18 purchaser during the preceding calendar month. Such return
19 shall be filed on a form prescribed by the Department and
20 shall contain such information as the Department may
21 reasonably require.
22 (c) For purposes of the use tax and the service use tax,
23 when a purchaser pays a tax imposed by Article 15 or 25
24 directly to the Department, the Department (upon request
25 therefor from such purchaser) shall issue an appropriate
26 receipt to such purchaser showing that he has paid such tax
27 to the Department. Such receipt shall be sufficient to
28 relieve the purchaser from further liability for the tax to
29 which such receipt may refer.
30 (d) For purposes of the use tax and the service use tax,
31 a user who is liable to pay use tax or service use tax
32 directly to the Department only occasionally and not on a
33 frequently recurring basis, and who is not required to file
34 returns with the Department as a retailer or serviceman under
-134- LRB9000671KDdvA
1 Sections 50-5 through 50-140 of this Code need not register
2 with the Department. However, if such a user has a frequently
3 recurring direct use tax or service use tax liability to pay
4 to the Department, such user shall be required to register
5 with the Department on forms prescribed by the Department and
6 to obtain and display a certificate of registration from the
7 Department. In that event, all of the provisions of Sections
8 50-5 through 50-140 of this Code concerning the filing of
9 regular monthly, quarterly or annual tax returns and all of
10 the provisions of Sections 35-5 through 35-45 concerning the
11 requirements for registrants to post bond or other security
12 with the Department, as the provisions of such sections now
13 exist or may hereafter be amended, shall apply to such users
14 to the same extent as if such provisions were included
15 herein.
16 Section 50-160. Manufacturer's Purchase Credit.
17 (a) For purposes of the retailers' occupation tax, a
18 retailer may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of use tax as
20 provided in Section 30-230 if the purchaser provides the
21 appropriate documentation as required by Section 30-230. A
22 Manufacturer's Purchase Credit certification, accepted by a
23 retailer as provided in Section 30-230, may be used by that
24 retailer to satisfy retailers' occupation tax liability in
25 the amount claimed in the certification, not to exceed 6.25%
26 of the receipts subject to tax from a qualifying purchase.
27 (b) For purposes of the service occupation tax, a
28 serviceman may accept a Manufacturer's Purchase Credit
29 certification from a purchaser in satisfaction of service use
30 tax as provided in Section 30-230 if the purchaser provides
31 the appropriate documentation as required by Section 30-230.
32 A Manufacturer's Purchase Credit certification, accepted by a
33 serviceman as provided in Section 30-230 may be used by that
-135- LRB9000671KDdvA
1 serviceman to satisfy service occupation tax liability in the
2 amount claimed in the certification, not to exceed 6.25% of
3 the receipts subject to tax from a qualifying purchase.
4 ARTICLE 55. CREDITS AND REFUNDS
5 Section 55-5. Erroneous payment; credit or refund;
6 retailers' occupation tax. If it appears, after claim
7 therefor filed with the Department, that an amount of tax or
8 penalty or interest has been paid which was not due under
9 Article 10, whether as the result of a mistake of fact or an
10 error of law, except as hereinafter provided, then the
11 Department shall issue a credit memorandum or refund to the
12 person who made the erroneous payment or, if that person died
13 or became a person under legal disability, to his or her
14 legal representative, as such. For purposes of this Section,
15 the tax is deemed to be erroneously paid by a retailer when
16 the manufacturer of a motor vehicle sold by the retailer
17 accepts the return of that automobile and refunds to the
18 purchaser the selling price of that vehicle as provided in
19 the New Vehicle Buyer Protection Act. When a motor vehicle is
20 returned for a refund of the purchase price under the New
21 Vehicle Buyer Protection Act, the Department shall issue a
22 credit memorandum or a refund for the amount of tax paid by
23 the retailer under Article 10 attributable to the initial
24 sale of that vehicle. Claims submitted by the retailer are
25 subject to the same restrictions and procedures provided for
26 in this Code. If it is determined that the Department should
27 issue a credit memorandum or refund, the Department may first
28 apply the amount thereof against any tax or penalty or
29 interest due or to become due under this Code, the Municipal
30 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
31 Municipal Service Occupation Tax Act, the County Retailers'
32 Occupation Tax Act, the County Supplementary Retailers'
-136- LRB9000671KDdvA
1 Occupation Tax Act, the County Service Occupation Tax Act,
2 the County Supplementary Service Occupation Tax Act, the
3 County Use Tax Act, the County Supplementary Use Tax Act,
4 Section 4 of the Water Commission Act of 1985, subsections
5 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
6 District Act, or subsections (e), (f) and (g) of Section 4.03
7 of the Regional Transportation Authority Act, from the person
8 who made the erroneous payment. If no tax or penalty or
9 interest is due and no proceeding is pending to determine
10 whether such person is indebted to the Department for tax or
11 penalty or interest, the credit memorandum or refund shall be
12 issued to the claimant; or (in the case of a credit
13 memorandum) the credit memorandum may be assigned and set
14 over by the lawful holder thereof, subject to reasonable
15 rules of the Department, to any other person who is subject
16 to this Code, the Municipal Retailers' Occupation Tax Act,
17 the Municipal Use Tax Act, the Municipal Service Occupation
18 Tax Act, the County Retailers' Occupation Tax Act, the County
19 Supplementary Retailers' Occupation Tax Act, the County
20 Service Occupation Tax Act, the County Supplementary Service
21 Occupation Tax Act, the County Use Tax Act, the County
22 Supplementary Use Tax Act, Section 4 of the Water Commission
23 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
24 the Local Mass Transit District Act, or subsections (e), (f)
25 and (g) of Section 4.03 of the Regional Transportation
26 Authority Act, and the amount thereof applied by the
27 Department against any tax or penalty or interest due or to
28 become due under this Code, the Municipal Retailers'
29 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
30 Service Occupation Tax Act, the County Retailers' Occupation
31 Tax Act, the County Supplementary Retailers' Occupation Tax
32 Act, the County Service Occupation Tax Act, the County
33 Supplementary Service Occupation Tax Act, the County Use Tax
34 Act, the County Supplementary Use Tax Act, Section 4 of the
-137- LRB9000671KDdvA
1 Water Commission Act of 1985, subsections (b), (c) and (d) of
2 Section 5.01 of the Local Mass Transit District Act, or
3 subsections (e), (f) and (g) of Section 4.03 of the Regional
4 Transportation Authority Act, from such assignee.
5 No claim shall be allowed for any amount paid to the
6 Department, whether paid voluntarily or involuntarily, if
7 paid in total or partial liquidation of an assessment which
8 had become final before the claim for credit or refund to
9 recover the amount so paid is filed with the Department, or
10 if paid in total or partial liquidation of a judgment or
11 order of court.
12 No credit may be allowed or refund made for any amount
13 paid by or collected from any claimant unless it appears (a)
14 that the claimant bore the burden of such amount and has not
15 been relieved thereof nor reimbursed therefor and has not
16 shifted such burden directly or indirectly through inclusion
17 of such amount in the price of the tangible personal property
18 sold by him or her or in any manner whatsoever; and that no
19 understanding or agreement, written or oral, exists whereby
20 he or she or his or her legal representative may be relieved
21 of the burden of such amount, be reimbursed therefor or may
22 shift the burden thereof; or (b) that he or she or his or her
23 legal representative has repaid unconditionally such amount
24 to his or her vendee (1) who bore the burden thereof and has
25 not shifted such burden directly or indirectly, in any manner
26 whatsoever; (2) who, if he or she has shifted such burden,
27 has repaid unconditionally such amount to his own vendee; and
28 (3) who is not entitled to receive any reimbursement therefor
29 from any other source than from his or her vendor, nor to be
30 relieved of such burden in any manner whatsoever. No credit
31 may be allowed or refund made for any amount paid by or
32 collected from any claimant unless it appears that the
33 claimant has unconditionally repaid, to the purchaser, any
34 amount collected from the purchaser and retained by the
-138- LRB9000671KDdvA
1 claimant with respect to the same transaction under Article
2 15.
3 If a retailer who has failed to pay retailers' occupation
4 tax on gross receipts from retail sales is required by the
5 Department to pay such tax, such retailer, without filing any
6 formal claim with the Department, shall be allowed to take
7 credit against such retailers' occupation tax liability to
8 the extent, if any, to which such retailer has paid an amount
9 equivalent to retailers' occupation tax or has paid use tax
10 in error to his or her vendor or vendors of the same tangible
11 personal property which such retailer bought for resale and
12 did not first use before selling it, and no penalty or
13 interest shall be charged to such retailer on the amount of
14 such credit. However, when such credit is allowed to the
15 retailer by the Department, the vendor is precluded from
16 refunding any of that tax to the retailer and filing a claim
17 for credit or refund with respect thereto with the
18 Department. The provisions of this amendatory Act shall be
19 applied retroactively, regardless of the date of the
20 transaction.
21 Section 55-10. Erroneous payment; creditor refund; use
22 tax; service occupation tax; service use tax.
23 (a) For purposes of the use tax, the service occupation
24 tax, and the service use tax, if it shall appear that an
25 amount of tax or penalty or interest has been paid in error
26 under Article 15, Article 20, or Article 25 to the Department
27 by (i) a purchaser, as distinguished from the retailer, (ii)
28 a serviceman, or (iii) a purchaser, as distinguished from the
29 serviceman, whether such amount be paid through a mistake of
30 fact or an error of law, such purchaser or serviceman may
31 file a claim for credit or refund with the Department. If it
32 shall appear that an amount of tax or penalty or interest has
33 been paid in error to the Department under Article 15,
-139- LRB9000671KDdvA
1 Article 20, or Article 25 by (i) a retailer who is required
2 or authorized to collect and remit the tax imposed by Article
3 15, (ii) a supplier who is required or authorized to collect
4 and remit the tax imposed by Article 20, or (iii) a
5 serviceman who is required or authorized to collect the tax
6 imposed by Article 25, whether such amount be paid through a
7 mistake of fact or an error of law, such retailer, supplier,
8 or serviceman may file a claim for credit or refund with the
9 Department, provided that no credit or refund shall be
10 allowed for any amount paid by any such retailer, supplier,
11 or serviceman unless it shall appear that he bore the burden
12 of such amount and did not shift the burden thereof to anyone
13 else (as in the case of a duplicated tax payment which the
14 retailer, supplier, or serviceman made to the Department and
15 did not collect from anyone else), or unless it shall appear
16 that he or she or his or her legal representative has
17 unconditionally repaid such amount to his vendee (1) who bore
18 the burden thereof and has not shifted such burden directly
19 or indirectly in any manner whatsoever; (2) who, if he has
20 shifted such burden, has repaid unconditionally such amount
21 to his or her own vendee; and (3) who is not entitled to
22 receive any reimbursement therefor from any other source than
23 from his vendor, nor to be relieved of such burden in any
24 other manner whatsoever.
25 (b) For purposes of the use tax and the service use tax,
26 if it shall appear that an amount of tax has been paid in
27 error under Article 15 or Article 25 by (i) the purchaser to
28 a retailer or (ii) the purchaser to a serviceman, who
29 retained such tax as reimbursement for his or her tax
30 liability on the same sale under Article 10, in the case of a
31 retailer, or Article 20, in the case of a serviceman, and who
32 remitted the amount involved to the Department under Article
33 10 or Article 20, whether such amount be paid through a
34 mistake of fact or an error of law, the procedure for
-140- LRB9000671KDdvA
1 recovering such tax shall be as prescribed in this Article
2 55.
3 (c) For purposes of the use tax, if a retailer who has
4 failed to pay use tax on gross receipts from retail sales is
5 required by the Department to pay such tax, such retailer,
6 without filing any formal claim with the Department, shall be
7 allowed to take credit against such use tax liability to the
8 extent, if any, to which such retailer has paid an amount
9 equivalent to retailers' occupation tax or has paid use tax
10 in error to his or her vendor or vendors of the same tangible
11 personal property which such retailer bought for resale and
12 did not first use before selling it, and no penalty or
13 interest shall be charged to such retailer on the amount of
14 such credit. However, when such credit is allowed to the
15 retailer by the Department, the vendor is precluded from
16 refunding any of that tax to the retailer and filing a claim
17 for credit or refund with respect thereto with the
18 Department. The provisions of this amendatory Act shall be
19 applied retroactively, regardless of the date of the
20 transaction.
21 Section 55-15. Credit or refund; payment and interest.
22 Any credit or refund that is allowed under Section 55-5 or
23 55-10 shall bear interest at the rate and in the manner
24 specified in the Uniform Penalty and Interest Act.
25 In case the Department determines that the claimant is
26 entitled to a refund, such refund shall be made only from
27 such appropriation as may be available for that purpose. If
28 it appears unlikely that the amount appropriated would permit
29 everyone having a claim allowed during the period covered by
30 such appropriation to elect to receive a cash refund, the
31 Department, by rule or regulation, shall provide for the
32 payment of refunds in hardship cases and shall define what
33 types of cases qualify as hardship cases.
-141- LRB9000671KDdvA
1 Section 55-20. Claims for credit or refund.
2 (a) For purposes of the retailers' occupation tax,
3 claims for credit or refund shall be prepared and filed upon
4 forms provided by the Department. Each claim shall state: (1)
5 the name and principal business address of the claimant; (2)
6 the period covered by the claim; (3) the total amount of
7 credit or refund claimed, giving in detail the net amount of
8 taxable receipts reported each month or other return period
9 used by the claimant as the basis for filing returns in the
10 period covered by the claim; (4) the total amount of tax paid
11 for each return period; (5) receipts upon which tax liability
12 is admitted for each return period; (6) the amount of
13 receipts on which credit or refund is claimed for each return
14 period; (7) the tax due for each return period as corrected;
15 (8) the amount of credit or refund claimed for each return
16 period; (9) reason or reasons why the amount, for which the
17 claim is filed, is alleged to have been paid in error; (10) a
18 list of the evidence (documentary or otherwise) which the
19 claimant has available to establish his compliance with
20 Section 55-5 as to bearing the burden of the tax for which he
21 seeks credit or refund; (11) payments or parts thereof (if
22 any) included in the claim and paid by the claimant under
23 protest; (12) sufficient information to identify any suit
24 which involves this Code, and to which the claimant is a
25 party; and (13) such other information as the Department may
26 reasonably require. Where the claimant is a corporation or
27 limited liability company, the claim filed on behalf of such
28 corporation or limited liability company shall be signed by
29 the president, vice-president, secretary or treasurer, by the
30 properly accredited agent of such corporation, or by a
31 manager, member, or properly accredited agent of the limited
32 liability company.
33 (b) For purposes of the use tax, the service occupation
34 tax, and the service use tax, any claim filed under Section
-142- LRB9000671KDdvA
1 55-10 shall be filed upon a form prescribed and furnished by
2 the Department. The claim shall be signed by the claimant
3 (or by the claimant's legal representative if the claimant
4 shall have died or become a person under legal disability),
5 or by a duly authorized agent of the claimant or his or her
6 legal representative.
7 (c) A claim for credit or refund shall be considered to
8 have been filed with the Department on the date upon which it
9 is received by the Department. Upon receipt of any claim for
10 credit or refund filed under this Code, any officer or
11 employee of the Department, authorized in writing by the
12 Director of Revenue to acknowledge receipt of such claims on
13 behalf of the Department, shall execute on behalf of the
14 Department, and shall deliver or mail to the claimant or his
15 or her duly authorized agent, a written receipt,
16 acknowledging that the claim has been filed with the
17 Department, describing the claim in sufficient detail to
18 identify it and stating the date upon which the claim was
19 received by the Department. Such written receipt shall be
20 prima facie evidence that the Department received the claim
21 described in such receipt and shall be prima facie evidence
22 of the date when such claim was received by the Department.
23 In the absence of such a written receipt, the records of the
24 Department as to when the claim was received by the
25 Department, or as to whether or not the claim was received at
26 all by the Department, shall be deemed to be prima facie
27 correct upon these questions in the event of any dispute
28 between the claimant (or his legal representative) and the
29 Department concerning these questions.
30 Section 55-25. Determination of claim; hearing.
31 (a) As soon as practicable after a claim for credit or
32 refund is filed, the Department shall examine the same and
33 determine the amount of credit or refund to which the
-143- LRB9000671KDdvA
1 claimant or the claimant's legal representative, in the event
2 that the claimant shall have died or become a person under
3 legal disability, is entitled and shall, by its Notice of
4 Tentative Determination of Claim, notify the claimant or his
5 or her legal representative of such determination, which
6 determination shall be prima facie correct. Proof of such
7 determination by the Department may be made at any hearing
8 before the Department or in any legal proceeding by a
9 reproduced copy of the Department's record relating thereto,
10 in the name of the Department under the certificate of the
11 Director of Revenue. Such reproduced copy shall, without
12 further proof, be admitted into evidence before the
13 Department or in any legal proceeding and shall be prima
14 facie proof of the correctness of the Department's
15 determination, as shown therein. If such claimant, or the
16 legal representative of a deceased claimant or a claimant who
17 is a person under legal disability shall, for purposes of the
18 use tax, the service occupation tax, and the service use tax,
19 within 20 days after the Department's Notice of Tentative
20 Determination of Claim, or for purposes of the retailers'
21 occupation tax, within 60 days after the Department's Notice
22 of Tentative Determination of Claim, file a protest thereto
23 and request a hearing thereon, the Department shall give
24 notice to such claimant, or the legal representative of a
25 deceased claimant, or a claimant who is a person under legal
26 disability of the time and place fixed for such hearing, and
27 shall hold a hearing in conformity with the provisions of
28 this Code, and pursuant thereto shall issue its Final
29 Determination of the amount, if any, found to be due as a
30 result of such hearing, to such claimant, or the legal
31 representative of a deceased claimant or a claimant who is a
32 person under legal disability.
33 (b) For purposes of the retailers' occupation tax only,
34 the Department's Final Determination may be reviewed by the
-144- LRB9000671KDdvA
1 proper Circuit Court, in the same manner, within the same
2 time, upon the same terms and conditions and to the same
3 extent, as provided by Section 77-5 of this Code.
4 Section 55-30. Final determination of claim. If a
5 protest to the Department's Notice of Tentative Determination
6 of Claim is not filed within 20 days and a request for a
7 hearing thereon is not made as provided in Section 55-25, the
8 Notice shall thereupon become and operate as a Final
9 Determination; and, if the Department's Notice of Tentative
10 Determination, upon becoming a Final Determination, indicates
11 no amount due to the claimant, or, upon issuance of a credit
12 memorandum or refund for the amount, if any, found by the
13 Department to be due, the claim in all its aspects shall be
14 closed and no longer open to protest, hearing, judicial
15 review, or by any other proceeding or action whatever, either
16 before the Department or in any court of this State. Claims
17 for credit or refund hereunder must be filed with and
18 initially determined by the Department, the remedy herein
19 provided being exclusive; and no court shall have
20 jurisdiction to determine the merits of any claim except upon
21 review as provided in this Code.
22 Section 55-35. Limitations. As to any claim for credit
23 or refund filed with the Department on and after January 1
24 but on or before June 30 of any given year, no amount of tax
25 or penalty or interest erroneously paid (either in total or
26 partial liquidation of a tax or penalty or interest under
27 this Code) more than 3 years prior to such January 1 shall be
28 credited or refunded, and as to any such claim filed on and
29 after July 1 but on or before December 31 of any given year,
30 no amount of tax or penalty or interest erroneously paid
31 (either in total or partial liquidation of a tax or penalty
32 or interest under this Code) more than 3 years prior to such
-145- LRB9000671KDdvA
1 July 1 shall be credited or refunded except that, for
2 purposes of the retailers' occupation tax, if both the
3 Department and the taxpayer have agreed to an extension of
4 time to issue a notice of tax liability as provided in
5 Section 50-145 of this Code, such claim may be filed at any
6 time prior to the expiration of the period agreed upon.
7 Section 55-40. Application of credit or refund against
8 tax. For purposes of the use tax, the service occupation
9 tax, and the service use tax, if it is determined that the
10 Department should issue a credit or refund under this Code,
11 the Department may first apply the amount thereof against any
12 amount of tax or penalty or interest due under this Code, the
13 Municipal Retailers' Occupation Tax Act, the Municipal Use
14 Tax Act, the Municipal Service Occupation Tax Act, the County
15 Retailers' Occupation Tax Act, the County Supplementary
16 Retailers' Occupation Tax Act, the County Service Occupation
17 Tax Act, the County Supplementary Service Occupation Tax Act,
18 the County Use Tax Act, the County Supplementary Use Tax Act,
19 Section 4 of the Water Commission Act of 1985, subsections
20 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
21 District Act, or subsections (e), (f) and (g) of Section 4.03
22 of the Regional Transportation Authority Act, from the person
23 entitled to such credit or refund. For this purpose, if
24 proceedings are pending to determine whether or not any tax
25 or penalty or interest is due under this Code, the Municipal
26 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
27 Municipal Service Occupation Tax Act, the County Retailers'
28 Occupation Tax Act, the County Supplementary Retailers'
29 Occupation Tax Act, the County Service Occupation Tax Act,
30 the County Supplementary Service Occupation Tax Act, the
31 County Use Tax Act, the County Supplementary Use Tax Act,
32 Section 4 of the Water Commission Act of 1985, subsections
33 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
-146- LRB9000671KDdvA
1 District Act, or subsections (e), (f) and (g) of Section 4.03
2 of the Regional Transportation Authority Act, from such
3 person, the Department may withhold issuance of the credit or
4 refund pending the final disposition of such proceedings and
5 may apply such credit or refund against any amount found to
6 be due to the Department as a result of such proceedings. The
7 balance, if any, of the credit or refund shall be issued to
8 the person entitled thereto.
9 Any credit memorandum issued hereunder may be used by the
10 authorized holder thereof to pay any tax or penalty or
11 interest due or to become due under this Code or under the
12 Municipal Retailers' Occupation Tax Act, the Municipal Use
13 Tax Act, the Municipal Service Occupation Tax Act, the County
14 Retailers' Occupation Tax Act, the County Supplementary
15 Retailers' Occupation Tax Act, the County Service Occupation
16 Tax Act, the County Supplementary Service Occupation Tax Act,
17 the County Use Tax Act, the County Supplementary Use Tax Act,
18 Section 4 of the Water Commission Act of 1985, subsections
19 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
20 District Act, or subsections (e), (f) and (g) of Section 4.03
21 of the Regional Transportation Authority Act, from such
22 holder. Subject to reasonable rules of the Department, a
23 credit memorandum issued hereunder may be assigned by the
24 holder thereof to any other person for use in paying tax or
25 penalty or interest which may be due or become due under this
26 Code or, for purposes of the service occupation tax and the
27 service use tax, due under the Municipal Retailers'
28 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
29 Service Occupation Tax Act, the County Retailers' Occupation
30 Tax Act, the County Supplementary Retailers' Occupation Tax
31 Act, the County Service Occupation Tax Act, the County
32 Supplementary Service Occupation Tax Act, the County Use Tax
33 Act, the County Supplementary Use Tax Act, Section 4 of the
34 Water Commission Act of 1985, subsections (b), (c) and (d) of
-147- LRB9000671KDdvA
1 Section 5.01 of the Local Mass Transit District Act, or
2 subsections (e), (f) and (g) of Section 4.03 of the Regional
3 Transportation Authority Act, from the assignee.
4 (b) For purposes of this Code, in any case in which
5 there has been an erroneous refund of tax payable under this
6 Code, a notice of tax liability may be issued at any time
7 within 3 years from the making of that refund, or within 5
8 years from the making of that refund if it appears that any
9 part of the refund was induced by fraud or the
10 misrepresentation of a material fact. The amount of any
11 proposed assessment set forth in the notice shall be limited
12 to the amount of the erroneous refund.
13 ARTICLE 60. COLLECTION
14 Section 60-5. Tax collected as debt owed to State;
15 exception. The tax required to be collected by any retailer
16 pursuant to Article 15, any supplier pursuant to Article 20,
17 or any serviceman pursuant to Article 25, and any such tax
18 collected by any retailer, supplier, or serviceman shall
19 constitute a debt owed by the retailer, supplier, or
20 serviceman to this State, except (i) when such retailer is
21 relieved of the duty of remitting such tax to the Department
22 by virtue of his being required to pay, and his in fact
23 paying, the tax imposed by Article 10 upon his gross receipts
24 from the same transaction, or (ii) when such serviceman is
25 relieved of the duty of remitting such tax to the Department
26 by virtue of his being required to pay, and his in fact
27 paying, the tax imposed by Article 20 upon his sale of
28 service involving the incidental transfer by him of the same
29 property.
30 Section 60-10. Foreign retailers; permit to collect tax.
31 For purposes of the use tax, the service occupation tax, and
-148- LRB9000671KDdvA
1 the service use tax, the Department may, in its discretion,
2 upon application, authorize the collection of the tax herein
3 imposed by any retailer, supplier, or serviceman not
4 maintaining a place of business within this State, who, to
5 the satisfaction of the Department, furnishes adequate
6 security to insure collection and payment of the tax. Such
7 retailer, supplier, or serviceman shall be issued, without
8 charge, a permit to collect such tax. When so authorized, it
9 shall be the duty of such retailer, supplier, or serviceman
10 to collect the tax upon all tangible personal property sold
11 to his knowledge for use or for the purpose of resale as an
12 incident to the sale of a service within this State, in the
13 same manner and subject to the same requirements, including
14 the furnishing of a receipt to the purchaser or serviceman
15 (if demanded by the purchaser or serviceman), as a retailer,
16 supplier, or serviceman maintaining a place of business
17 within this State. The receipt given to the purchaser or
18 serviceman shall be sufficient to relieve him from further
19 tax liability for the tax to which such receipt may refer.
20 Such permit may be revoked by the Department as provided in
21 this Code.
22 Section 60-15. Foreign retailers; revocation of permit
23 to collect tax. For purposes of the use tax and service use
24 tax, whenever any retailer or serviceman not maintaining a
25 place of business in this State, to whom a permit to collect
26 the taxes imposed by Article 15 and Article 25 has been
27 issued pursuant to Section 60-10, fails to comply with any of
28 the provisions hereof or any orders, rules or regulations of
29 the Department prescribed and adopted hereunder, or when the
30 Department considers the security furnished by such retailer
31 or serviceman to be inadequate or considers that the tax can
32 be collected more effectively from persons using such
33 property in this State, the Department may, upon notice and
-149- LRB9000671KDdvA
1 hearing as herein provided, by order revoke the permit issued
2 to such retailer or serviceman. No order authorized by this
3 Section shall be made until the retailer or serviceman is
4 given an opportunity to be heard and to show cause why such
5 order shall not be made, and he shall be given at least 7
6 days' notice of the time, place and purpose of such hearing.
7 The Department shall have the power in its discretion to
8 issue a new permit pursuant to Section 60-10 after such
9 revocation.
10 Section 60-20. Receipts; list of agents.
11 (a) For purposes of the use tax, except as to motor
12 vehicles and other items of tangible personal property that
13 must be titled or registered under an Illinois law, but that
14 cannot be so titled or registered without a use tax receipt
15 or exemption determination from the Department, every
16 retailer maintaining a place of business in this State and
17 making sales of tangible personal property for use in this
18 State (whether those sales are made within or without this
19 State) shall, when collecting the tax as provided in Section
20 15-20 of this Code from the purchaser, give to the purchaser
21 (if demanded by the purchaser) a receipt for the tax in the
22 manner and form prescribed by the Department.
23 (b) For purposes of the service occupation tax and the
24 service use tax, every supplier or serviceman maintaining a
25 place of business in this State and (i) making sales of
26 tangible personal property for the purpose of resale as an
27 incident to the sale of service taxable under this Code or
28 (ii) making sales of service involving the incidental
29 transfer of property for use in this State (whether those
30 sales are made within or without this State) shall, when
31 collecting the taxes as provided in Sections 20-20 and 25-20
32 of this Code from the serviceman or purchaser, give to the
33 serviceman or purchaser, if demanded by the serviceman or
-150- LRB9000671KDdvA
1 purchaser, a receipt for the tax in the manner and form
2 provided by the Department.
3 (c) A receipt issued under this Section shall be
4 sufficient to relieve the purchaser or serviceman from
5 further liability for the tax to which the receipt may refer.
6 Each retailer, supplier, or serviceman shall list with the
7 Department the names and addresses of all of his or her
8 agents operating in this State and the location of any and
9 all of his or her distribution or sales houses, offices, or
10 other places of business in this State.
11 ARTICLE 65. LIENS
12 Section 65-5. Tax lien. The Department shall have a lien
13 for the taxes herein imposed or any portion thereof, or for
14 any penalty provided for in this Code, or for any amount of
15 interest which may be due as provided for in Section 50-150
16 of this Code, upon all the real and personal property of any
17 person to whom a final assessment or revised final assessment
18 has been issued as provided in this Code, or whenever a
19 return is filed without payment of the tax or penalty shown
20 therein to be due, including all such property of such
21 persons acquired after receipt of such assessment or filing
22 of such return.
23 However, where the lien arises because of the issuance of
24 a final assessment or revised final assessment by the
25 Department, such lien shall not attach and the notice
26 hereinafter referred to in this Section shall not be filed
27 until all proceedings in court for review of such final
28 assessment or revised final assessment have terminated or the
29 time for the taking thereof has expired without such
30 proceedings being instituted.
31 Upon the granting of a rehearing or departmental review
32 pursuant to Section 50-145 or Section 50-150 of this Code
-151- LRB9000671KDdvA
1 after a lien has attached, such lien shall remain in full
2 force except to the extent to which the final assessment may
3 be reduced by a revised final assessment following such
4 rehearing or review.
5 The lien created by the issuance of a final assessment
6 shall terminate unless a notice of lien is filed, as provided
7 in Section 65-10, within 3 years from the date all
8 proceedings in court for the review of such final assessment
9 have terminated or the time for the taking thereof has
10 expired without such proceedings being instituted, or (in the
11 case of a revised final assessment issued pursuant to a
12 rehearing or departmental review) within 3 years from the
13 date all proceedings in court for the review of such revised
14 final assessment have terminated or the time for the taking
15 thereof has expired without such proceedings being
16 instituted; and where the lien results from the filing of a
17 return without payment of the tax or penalty shown therein to
18 be due, the lien shall terminate unless a notice of lien is
19 filed, as provided in Section 65-10 hereof, within 3 years
20 from the date when such return is filed with the Department:
21 provided that the time limitation period on the Department's
22 right to file a notice of lien shall not run during any
23 period of time in which the order of any court has the effect
24 of enjoining or restraining the Department from filing such
25 notice of lien.
26 If the Department finds that a taxpayer is about to
27 depart from the State, or to conceal himself or his property,
28 or to do any other act tending to prejudice or to render
29 wholly or partly ineffectual proceedings to collect such tax
30 unless such proceedings are brought without delay, or if the
31 Department finds that the collection of the amount due from
32 any taxpayer will be jeopardized by delay, the Department
33 shall give the taxpayer notice of such findings and shall
34 make demand for immediate return and payment of such tax,
-152- LRB9000671KDdvA
1 whereupon such tax shall become immediately due and payable.
2 If the taxpayer, within 5 days after such notice (or within
3 such extension of time as the Department may grant), does not
4 comply with such notice or show to the Department that the
5 findings in such notice are erroneous, the Department may
6 file a notice of jeopardy assessment lien in the office of
7 the recorder of the county in which any property of the
8 taxpayer may be located and shall notify the taxpayer of such
9 filing. Such jeopardy assessment lien shall have the same
10 scope and effect as the statutory lien hereinbefore provided
11 for in this Section.
12 If the taxpayer believes that he does not owe some or all
13 of the tax for which the jeopardy assessment lien against him
14 has been filed, or that no jeopardy to the revenue in fact
15 exists, he may protest within 20 days after being notified by
16 the Department of the filing of such jeopardy assessment lien
17 and request a hearing, whereupon the Department shall hold a
18 hearing in conformity with the provisions of this Code and,
19 pursuant thereto, shall notify the taxpayer of its findings
20 as to whether or not such jeopardy assessment lien will be
21 released. If not, and if the taxpayer is aggrieved by this
22 decision, he may file an action for judicial review of such
23 final determination of the Department in accordance with
24 Section 77-5 of this Code and the Administrative Review Law.
25 If, pursuant to such hearing (or after an independent
26 determination of the facts by the Department without a
27 hearing), the Department determines that some or all of the
28 tax covered by the jeopardy assessment lien is not owed by
29 the taxpayer, or that no jeopardy to the revenue exists, or
30 if on judicial review the final judgment of the court is that
31 the taxpayer does not owe some or all of the tax covered by
32 the jeopardy assessment lien against him, or that no jeopardy
33 to the revenue exists, the Department shall release its
34 jeopardy assessment lien to the extent of such finding of
-153- LRB9000671KDdvA
1 nonliability for the tax, or to the extent of such finding of
2 no jeopardy to the revenue.
3 The Department shall also release its jeopardy assessment
4 lien against the taxpayer whenever the tax and penalty
5 covered by such lien, plus any interest which may be due, are
6 paid.
7 Nothing in this Section shall be construed to give the
8 Department a preference over the rights of any bona fide
9 purchaser, holder of a security interest, mechanics
10 lienholder, mortgagee, or judgment lien creditor arising
11 prior to the filing of a regular notice of lien or a notice
12 of jeopardy assessment lien in the office of the recorder in
13 the county in which the property subject to the lien is
14 located: provided, however, that the word "bona fide", as
15 used in this Section shall not include any mortgage of real
16 or personal property or any other credit transaction that
17 results in the mortgagee or the holder of the security acting
18 as trustee for unsecured creditors of the taxpayer mentioned
19 in the notice of lien who executed such chattel or real
20 property mortgage or the document evidencing such credit
21 transaction. Such lien shall be inferior to the lien of
22 general taxes, special assessments and special taxes
23 heretofore or hereafter levied by any political subdivision
24 of this State.
25 In case title to land to be affected by the notice of
26 lien or notice of jeopardy assessment lien is registered
27 under the provisions of the Registered Titles (Torrens) Act,
28 such notice shall be filed in the office of the Registrar of
29 Titles of the county within which the property subject to the
30 lien is situated and shall be entered upon the register of
31 titles as a memorial or charge upon each folium of the
32 register of titles affected by such notice, and the
33 Department shall not have a preference over the rights of any
34 bona fide purchaser, mortgagee, judgment creditor or other
-154- LRB9000671KDdvA
1 lien holder arising prior to the registration of such notice:
2 Provided, however, that the word "bona fide" shall not
3 include any mortgage of real or personal property or any
4 other credit transaction that results in the mortgagee or the
5 holder of the security acting as trustee for unsecured
6 creditors of the taxpayer mentioned in the notice of lien who
7 executed such chattel or real property mortgage or the
8 document evidencing such credit transaction.
9 Such regular lien or jeopardy assessment lien shall not
10 be effective against any purchaser with respect to any item
11 in a retailer's stock in trade purchased from the retailer in
12 the usual course of such retailer's business.
13 Section 65-10. Records of State tax liens. The recorder
14 of each county shall procure a file labeled "State Tax Lien
15 Notices" and an index book labeled "State Tax Lien Index".
16 When notice of any lien or jeopardy assessment lien is
17 presented to him for filing, he shall file it in numerical
18 order in the file and shall enter it alphabetically in the
19 index. The entry shall show the name and last known business
20 address of the person named in the notice, the serial number
21 of the notice, the date and hour of filing, whether it is a
22 regular lien or a jeopardy assessment lien, and the amount of
23 tax and penalty due and unpaid, plus the amount of interest
24 due under Section 50-150 of this Code at the time when the
25 notice of lien or jeopardy assessment lien is filed.
26 No recorder or registrar of titles of any county shall
27 require that the Department pay any costs or fees in
28 connection with recordation of any notice or other document
29 filed by the Department under this Code at the time such
30 notice or other document is presented for recordation. The
31 recorder or registrar of each county, in order to receive
32 payment for fees or costs incurred by the Department, shall
33 present the Department with monthly statements indicating the
-155- LRB9000671KDdvA
1 amount of fees and costs incurred by the Department and for
2 which no payment has been received.
3 A notice of lien may be filed after the issuance of a
4 revised final assessment pursuant to a rehearing or
5 departmental review under Section 50-145 or Section 50-150 of
6 this Code.
7 When the lien obtained pursuant to this Code has been
8 satisfied, the Department shall issue a release to the
9 person, or his agent, against whom the lien was obtained and
10 such release shall contain in legible letters a statement as
11 follows:
12 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
13 BE FILED WITH THE RECORDER OR THE REGISTRAR
14 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
15 When a certificate of complete or partial release of lien
16 issued by the Department is presented for filing in the
17 office of the recorder or Registrar of Titles where a notice
18 of lien or notice of jeopardy assessment lien was filed, the
19 recorder, in the case of nonregistered property, shall
20 permanently attach the certificate of release to the notice
21 of lien or notice of jeopardy assessment lien and shall enter
22 the certificate of release and the date in the "State Tax
23 Lien Index" on the line where the notice of lien or notice of
24 jeopardy assessment lien is entered.
25 In the case of registered property, the Registrar of
26 Titles shall file and enter upon each folium of the register
27 of titles affected thereby a memorial of the certificate of
28 release which memorial when so entered shall act as a release
29 pro tanto of any memorial of such notice of lien or notice of
30 jeopardy assessment lien previously filed and registered.
31 Section 65-15. Tax liens; certificate of complete or
32 partial release. The Department shall issue a certificate of
33 complete or partial release of the lien:
-156- LRB9000671KDdvA
1 (a) to the extent that the fair market value of any
2 property subject to the lien exceeds the amount of the lien
3 plus the amount of all prior liens upon such property;
4 (b) to the extent that such lien shall become
5 unenforceable;
6 (c) to the extent that the amount of such lien is paid
7 by the retailer whose property is subject to such lien,
8 together with any interest which may become due under Section
9 50-150 of this Code between the date when the notice of lien
10 is filed and the date when the amount of such lien is paid;
11 (d) to the extent that there is furnished to the
12 Department on a form to be approved and with a surety or
13 sureties satisfactory to the Department a bond that is
14 conditioned upon the payment of the amount of such lien,
15 together with any interest which may become due under Section
16 50-150 of this Code after the notice of lien is filed, but
17 before the amount thereof is fully paid;
18 (e) to the extent and under the circumstances specified
19 in Section 65-5 of this Code in the case of jeopardy
20 assessment liens;
21 (f) to the extent to which an assessment is reduced
22 pursuant to a rehearing or departmental review under Section
23 50-145 or Section 50-150 of this Code.
24 A certificate of complete or partial release of any lien
25 shall be held conclusive that the lien upon the property
26 covered by the certificate is extinguished to the extent
27 indicated by such certificate.
28 Section 65-20. Tax liens on realty; enforcement. In
29 addition to any other remedy provided for by the laws of this
30 State, and provided that no hearing or proceedings for review
31 provided by this Code shall be pending, and the time for the
32 taking thereof shall have expired, the Department may
33 foreclose in the circuit court any lien on real property for
-157- LRB9000671KDdvA
1 any tax or penalty imposed by this Code to the same extent
2 and in the same manner as in the enforcement of other liens.
3 Provided that such proceedings to foreclose shall not be
4 instituted more than 20 years after the filing of the notice
5 of lien under the provisions of Section 65-10, except that
6 the time limitation period on the Department's right to
7 commence any such foreclosure proceeding shall not run during
8 any period of time in which a court order has the effect of
9 enjoining or restraining the Department from commencing such
10 foreclosure proceeding. The process, practice and procedure
11 for such foreclosure shall be the same as provided in the
12 Civil Practice Law, as amended. The provisions of this
13 amendatory Act of 1984 shall apply to any lien which has not
14 expired before September 13, 1984.
15 Section 65-25. Demand for payment of tax. In addition to
16 any other remedy provided for by the laws of this State, if
17 the taxes imposed by this Code are not paid within the time
18 required by this Code, the Department, or some person
19 designated by it, may cause a demand to be made on the
20 taxpayer for the payment of the tax. If the tax remains
21 unpaid for 10 days after demand has been made and no
22 proceedings have been taken for review, the Department may
23 issue a warrant directed to the sheriff of any county of the
24 State or to any State officer authorized to serve process,
25 commanding the sheriff or other officer to levy upon property
26 and rights to property (whether real or personal, tangible or
27 intangible) of the taxpayer, without exemption, found within
28 his or her jurisdiction, for the payment of the amount of
29 unpaid tax with the added penalties, interest and the cost of
30 executing the warrant. The term "levy" includes the power of
31 distraint and seizure by any means. In any case in which the
32 warrant to levy has been issued, the sheriff or other person
33 to whom the warrant was directed may seize and sell such
-158- LRB9000671KDdvA
1 property or rights to property. Such warrant shall be
2 returned to the Department together with the money collected
3 by virtue of the warrant within the time specified in the
4 warrant, which may not be less than 20 nor more than 90 days
5 from the date of the warrant. The sheriff or other officer to
6 whom such warrant is directed shall proceed in the same
7 manner as is prescribed by law for proceeding against
8 property to enforce judgments which are entered by a circuit
9 court of this State, and is entitled to the same fees for his
10 or her services in executing the warrant, to be collected in
11 the same manner. The Department, or some officer, employee or
12 agent designated by it, may bid for and purchase any such
13 property sold.
14 No proceedings for a levy under this Section may be
15 commenced more than 20 years after the latest date for filing
16 of the notice of lien under Section 65-10 of this Code,
17 without regard to whether such notice was actually filed.
18 Any officer or employee of the Department designated in
19 writing by the Director is authorized to serve process under
20 this Section to levy upon accounts or other intangible assets
21 of a taxpayer held by a financial organization, as defined by
22 Section 1501 of the Illinois Income Tax Act. In addition to
23 any other provisions of this Section, any officer or employee
24 of the Department designated in writing by the Director may
25 levy upon the following property and rights to property
26 belonging to a taxpayer: contractual payments, accounts and
27 notes receivable and other evidences of debt, and interest on
28 bonds, by serving a notice of levy on the person making such
29 payment. Levy shall not be made until the Department has
30 caused a demand to be made on the taxpayer in the manner
31 provided above. In addition to any other provisions of this
32 Section, any officer or employee of the Department designated
33 in writing by the Director, may levy upon the salary, wages,
34 commissions and bonuses of any employee, including officers,
-159- LRB9000671KDdvA
1 employees, or elected officials of the United States as
2 authorized by Section 5520a of the Government Organization
3 and Employees Act (5 U.S.C. 5520a), but not upon the salary
4 or wages of officers, employees, or elected officials of any
5 state other than this State, by serving a notice of levy on
6 the employer. Levy shall not be made until the Department
7 has caused a demand to be made on the employee in the manner
8 provided above. The provisions of Section 12-803 of the Code
9 of Civil Procedure relating to maximum compensation subject
10 to collection under wage deduction orders shall apply to all
11 levies made upon compensation under this Section. To the
12 extent of the amount due on the levy, the employer or other
13 person making payments to the taxpayer shall hold any
14 non-exempt wages or other payments due or which subsequently
15 come due. The levy or balance due thereon is a lien on wages
16 or other payments due at the time of the service of the
17 notice of levy, and such lien shall continue as to subsequent
18 earnings and other payments until the total amount due upon
19 the levy is paid, except that such lien on subsequent
20 earnings or other payments shall terminate sooner if the
21 employment relationship is terminated or if the notice of
22 levy is rescinded or modified. The employer or other person
23 making payments to the taxpayer shall file, on or before the
24 return dates stated in the notice of levy (which shall not be
25 more often than bimonthly) a written answer under oath to
26 interrogatories, setting forth the amount due as wages or
27 other payments to the taxpayer for the payment periods ending
28 immediately prior to the appropriate return date. A lien
29 obtained hereunder shall have priority over any subsequent
30 lien obtained pursuant to Section 12-808 of the Code of Civil
31 Procedure, except that liens for the support of a spouse or
32 dependent children shall have priority over all liens
33 obtained hereunder.
34 In any case where property or rights to property have
-160- LRB9000671KDdvA
1 been seized by an officer of the Illinois Department of Law
2 Enforcement, or successor agency thereto, under the authority
3 of a warrant to levy issued by the Department of Revenue, the
4 Department of Revenue may take possession of and may sell
5 such property or rights to property and the Department of
6 Revenue may contract with third persons to conduct sales of
7 such property or rights to the property. In the conduct of
8 such sales, the Department of Revenue shall proceed in the
9 same manner as is prescribed by law for proceeding against
10 property to enforce judgments which are entered by a circuit
11 court of this State. If, in the Department's opinion, no
12 offer to purchase at such sale is acceptable and the State's
13 interest would be better served by retaining the property for
14 sale at a later date, then the Department may decline to
15 accept any bid and may retain the property for sale at a
16 later date.
17 Section 65-30. Sale of property on which judgment for
18 tax is inferior; redemption. Except as to any sale had by
19 virtue of a judgment of foreclosure in accordance with
20 Article XV of the Code of Civil Procedure, whenever any real
21 estate has been or is sold at a judicial sale or a sale for
22 the enforcement of a judgment and such real estate is then
23 subject to a tax lien or notice of tax lien in favor of the
24 Department, as hereinbefore provided, and which is junior or
25 inferior to the lien so enforced or foreclosed by or through
26 that sale, the right to redeem in any manner under or by
27 virtue of such tax lien or claim for tax lien from such sale
28 or from the lien so foreclosed or enforced terminates at the
29 end of 12 months from the date upon which there is filed for
30 record in the office of the recorder for the county in which
31 the lands so sold are situated, if such lands are
32 unregistered, or in the office of the Registrar of Titles for
33 such county, if such lands are registered, a certified copy
-161- LRB9000671KDdvA
1 of the original or duplicate recorded or registered
2 certificate of such sale, such certified copy being endorsed
3 by the Director of Revenue showing service of a copy of such
4 certificate upon him or her, and upon such service it shall
5 be the duty of such officer to make such endorsement.
6 Service may be by United States registered or certified mail.
7 ARTICLE 70. HEARINGS
8 Section 70-5. Revocation of certificate of registration.
9 The Department may, after notice and a hearing as provided
10 herein, revoke the certificate of registration of any person
11 who violates any of the provisions of this Code. Before
12 revocation of a certificate of registration the Department
13 shall, within 90 days after non-compliance and at least 7
14 days prior to the date of the hearing, give the person so
15 accused notice in writing of the charge against him or her,
16 and on the date designated shall conduct a hearing upon this
17 matter. The lapse of such 90 day period shall not preclude
18 the Department from conducting revocation proceedings at a
19 later date if necessary. Any hearing held under this Section
20 shall be conducted by the Director of Revenue or by any
21 officer or employee of the Department designated, in writing,
22 by the Director of Revenue.
23 Upon the hearing of any such proceeding, the Director of
24 Revenue, or any officer or employee of the Department
25 designated, in writing, by the Director of Revenue, may
26 administer oaths and the Department may procure by its
27 subpoena the attendance of witnesses and, by its subpoena
28 duces tecum, the production of relevant books and papers. Any
29 circuit court, upon application either of the accused or of
30 the Department, may, by order duly entered, require the
31 attendance of witnesses and the production of relevant books
32 and papers, before the Department in any hearing relating to
-162- LRB9000671KDdvA
1 the revocation of certificates of registration. Upon refusal
2 or neglect to obey the order of the court, the court may
3 compel obedience thereof by proceedings for contempt.
4 The Department may, by application to any circuit court,
5 obtain an injunction restraining any person who engages in
6 the business of selling tangible personal property at retail
7 in this State without a certificate of registration (either
8 because the certificate of registration has been revoked or
9 because of a failure to obtain a certificate of registration
10 in the first instance) from engaging in such business until
11 such person, as if he or she were a new applicant for a
12 certificate of registration, shall comply with all of the
13 conditions, restrictions and requirements of Sections 35-5
14 through 35-45 of this Code and qualify for and obtain a
15 certificate of registration. Upon refusal or neglect to obey
16 the order of the court, the court may compel obedience
17 thereof by proceedings for contempt.
18 It shall not be a defense in a proceeding before the
19 Department to revoke a certificate of registration issued
20 under this Code, or in any action by the Department to
21 collect any tax due under this Code, that the holder of the
22 certificate is a party to an installment payment agreement
23 under Sections 35-5 through 35-45 if the liability which is
24 the basis of the revocation proceeding, or the tax that is
25 sought to be collected: (1) was incurred after the date of
26 the agreement was approved by the Department; or (2) was
27 incurred prior to the date the agreement was approved by the
28 Department, but was not included in the agreement; or (3) was
29 included in the agreement, but the taxpayer is in default of
30 the agreement.
31 Section 70-10. Investigations and hearings. For the
32 purpose of administering and enforcing the provisions of this
33 Code, the Department, or any officer or employee of the
-163- LRB9000671KDdvA
1 Department designated, in writing, by the Director thereof,
2 may hold investigations and hearings concerning any matters
3 covered by this Code and may examine any books, papers,
4 records or memoranda bearing upon the sales of tangible
5 personal property or services of any such person, and may
6 require the attendance of such person or any officer or
7 employee of such person, or of any person having knowledge of
8 such business, and may take testimony and require proof for
9 its information. In the conduct of any investigation or
10 hearing, neither the Department nor any officer or employee
11 thereof shall be bound by the technical rules of evidence,
12 and no informality in any proceeding, or in the manner of
13 taking testimony, shall invalidate any order, decision, rule
14 or regulation made or approved or confirmed by the
15 Department. The Director of Revenue, or any officer or
16 employee of the Department authorized by the Director
17 thereof, shall have power to administer oaths to such
18 persons. The books, papers, records and memoranda of the
19 Department, or parts thereof, may be proved in any hearing,
20 investigation, or legal proceeding by a reproduced copy
21 thereof under the certificate of the Director of Revenue.
22 Such reproduced copy shall, without further proof, be
23 admitted into evidence before the Department or in any legal
24 proceeding.
25 Section 70-15. Incriminating testimony. No person shall
26 be excused from testifying or from producing any books,
27 papers, records or memoranda in any investigation or upon any
28 hearing, when ordered to do so by the Department or any
29 officer or employee thereof, upon the ground that the
30 testimony or evidence, documentary or otherwise, may tend to
31 incriminate him or subject him to a criminal penalty, but no
32 person shall be prosecuted or subjected to any criminal
33 penalty for, or on account of, any transaction made or thing
-164- LRB9000671KDdvA
1 concerning which he may testify or produce evidence,
2 documentary or otherwise, before the Department or an officer
3 or employee thereof; provided, that such immunity shall
4 extend only to a natural person who, in obedience to a
5 subpoena, gives testimony under oath or produces evidence,
6 documentary or otherwise, under oath. No person so testifying
7 shall be exempt from prosecution and punishment for perjury
8 committed in so testifying.
9 Section 70-20. Subpoenas; witnesses; depositions. The
10 Department or any officer or employee of the Department
11 designated, in writing, by the Director thereof, shall at its
12 or his or her own instance, or on the written request of any
13 other party to the proceeding, issue subpoenas requiring the
14 attendance of and the giving of testimony by witnesses, and
15 subpoenas duces tecum requiring the production of books,
16 papers, records or memoranda. All subpoenas and subpoenas
17 duces tecum issued under the terms of this Code may be served
18 by any person of full age. The fees of witnesses for
19 attendance and travel shall be the same as the fees of
20 witnesses before the circuit court of this State; such fees
21 to be paid when the witness is excused from further
22 attendance. When the witness is subpoenaed at the instance of
23 the Department or any officer or employee thereof, such fees
24 shall be paid in the same manner as other expenses of the
25 Department, and when the witness is subpoenaed at the
26 instance of any other party to any such proceeding the
27 Department may require that the cost of service of the
28 subpoena or subpoena duces tecum and the fee of the witness
29 be borne by the party at whose instance the witness is
30 summoned. In such case, the Department, in its discretion,
31 may require a deposit to cover the cost of such service and
32 witness fees. A subpoena or subpoena duces tecum issued as
33 aforesaid shall be served in the same manner as a subpoena
-165- LRB9000671KDdvA
1 issued out of a court.
2 Any circuit court of this State, upon the application of
3 the Department or any officer or employee thereof, or upon
4 the application of any other party to the proceeding, may, in
5 its discretion, compel the attendance of witnesses, the
6 production of books, papers, records or memoranda and the
7 giving of testimony before the Department or any officer or
8 employee thereof conducting an investigation or holding a
9 hearing authorized by this Code, by an attachment for
10 contempt, or otherwise, in the same manner as production of
11 evidence may be compelled before the court.
12 The Department or any officer or employee thereof, or any
13 other party in an investigation or hearing before the
14 Department, may cause the depositions of witnesses within the
15 State to be taken in the manner prescribed by law for like
16 depositions in civil actions in courts of this State, and to
17 that end compel the attendance of witnesses and the
18 production of books, papers, records or memoranda.
19 ARTICLE 75. ADMINISTRATIVE PROCEDURE
20 Section 75-5. Application of the Administrative
21 Procedure Act. The Illinois Administrative Procedure Act is
22 hereby expressly adopted and shall apply to all
23 administrative rules and procedures of the Department of
24 Revenue under this Code, except that (1) paragraph (b) of
25 Section 5-10 of the Illinois Administrative Procedure Act
26 does not apply to final orders, decisions and opinions of the
27 Department, (2) subparagraph (a)(2) of Section 5-10 of the
28 Illinois Administrative Procedure Act does not apply to forms
29 established by the Department for use under this Code, and
30 (3) the provisions of Section 10-45 of the Illinois
31 Administrative Procedure Act regarding proposals for decision
32 are excluded and not applicable to the Department under this
-166- LRB9000671KDdvA
1 Code.
2 ARTICLE 77. ADMINISTRATIVE REVIEW LAW
3 Section 77-5. Review under Administrative Review Law.
4 The Department is authorized to make, promulgate and enforce
5 such reasonable rules and regulations relating to the
6 administration and enforcement of the provisions of this Code
7 as may be deemed expedient.
8 Whenever notice is required by this Code, such notice may
9 be given by United States registered or certified mail,
10 addressed to the person concerned at his last known address,
11 and proof of such mailing shall be sufficient for the
12 purposes of this Code. Notice of any hearing provided for by
13 this Code shall be so given not less than 7 days prior to the
14 day fixed for the hearing. Following the initial contact of a
15 person represented by an attorney, the Department shall not
16 contact the person concerned but shall only contact the
17 attorney representing the person concerned.
18 All hearings provided for in this Code with respect to or
19 concerning a taxpayer having his or her principal place of
20 business in this State other than in Cook County shall be
21 held at the Department's office nearest to the location of
22 the taxpayer's principal place of business: provided that if
23 the taxpayer has his or her principal place of business in
24 Cook County, such hearing shall be held in Cook County; and
25 provided, further, that if the taxpayer does not have his or
26 her principal place of business in this State, such hearing
27 shall be held in Sangamon County.
28 The Circuit Court of the County wherein the taxpayer has
29 his or her principal place of business, or of Sangamon County
30 in those cases where the taxpayer does not have his or her
31 principal place of business in this State, shall have power
32 to review all final administrative decisions of the
-167- LRB9000671KDdvA
1 Department in administering the provisions of this Code:
2 provided that if the administrative proceeding which is to be
3 reviewed judicially is a claim for refund proceeding
4 commenced in accordance with Section 55-5 or 55-10 of this
5 Code and Section 2a of the State Officers and Employees Money
6 Disposition Act, the Circuit Court having jurisdiction of
7 the action for judicial review under this Section and under
8 the Administrative Review Law shall be the same court that
9 entered the temporary restraining order or preliminary
10 injunction which is provided for in Section 2a of the State
11 Officers and Employees Money Disposition Act, and which
12 enables such claim proceeding to be processed and disposed of
13 as a claim for refund proceeding rather than as a claim for
14 credit proceeding.
15 The provisions of the Administrative Review Law, and the
16 rules adopted pursuant thereto, shall apply to and govern all
17 proceedings for the judicial review of final administrative
18 decisions of the Department hereunder. The term
19 "administrative decision" is defined as in Section 3-101 of
20 the Code of Civil Procedure.
21 Any person filing an action under the Administrative
22 Review Law to review a final assessment or revised final
23 assessment issued by the Department under this Code shall,
24 within 20 days after filing the complaint, file a bond with
25 good and sufficient surety or sureties residing in this State
26 or licensed to do business in this State or, instead of the
27 bond, obtain an order from the court imposing a lien upon the
28 plaintiff's property as provided in Article 65. If the person
29 filing the complaint fails to comply with this bonding
30 requirement within 20 days after filing the complaint, the
31 Department shall file a motion to dismiss and the court shall
32 dismiss the action unless the person filing the action
33 complies with the bonding requirement set out in this
34 provision within 30 days after the filing of the Department's
-168- LRB9000671KDdvA
1 motion to dismiss. Upon dismissal of any complaint for
2 failure to comply with the jurisdictional prerequisites
3 herein set forth, the court is empowered to and shall enter
4 judgment against the taxpayer and in favor of the Department
5 in the amount of the final assessment or revised final
6 assessment, together with any interest which may have accrued
7 since the Department issued the final assessment or revised
8 final assessment, and for costs, which judgment is
9 enforceable as other judgments for the payment of money. The
10 lien provided for in this Section shall not be applicable to
11 the real property of a corporate surety duly licensed to do
12 business in this State. The amount of such bond shall be
13 fixed and approved by the court, but shall not be less than
14 the amount of the tax and penalty claimed to be due by the
15 Department in its final assessment or revised final
16 assessment to the person filing such bond, plus the amount of
17 interest due from such person to the Department at the time
18 when the Department issued its final assessment to such
19 person. Such bond shall be executed to the Department of
20 Revenue and shall be conditioned on the taxpayer's payment
21 within 30 days after termination of the proceedings for
22 judicial review of the amount of tax and penalty and interest
23 found by the court to be due in such proceedings for judicial
24 review. Such bond, when filed and approved, shall, from such
25 time until 2 years after termination of the proceedings for
26 judicial review in which the bond is filed, be a lien against
27 the real estate situated in the county in which the bond is
28 filed, of the person filing such bond, and of the surety or
29 sureties on such bond, until the condition of the bond has
30 been complied with or until the bond has been canceled as
31 hereinafter provided. If the person filing any such bond
32 fails to keep the condition thereof, such bond shall
33 thereupon be forfeited, and the Department may institute an
34 action upon such bond in its own name for the entire amount
-169- LRB9000671KDdvA
1 of the bond and costs. Such action upon the bond shall be in
2 addition to any other remedy provided for herein. If the
3 person filing such bond complies with the condition thereof,
4 or if, in the proceedings for judicial review in which such
5 bond is filed, the court determines that no amount of tax or
6 penalty or interest is due, such bond shall be canceled.
7 If the court finds in a particular case that the
8 plaintiff cannot procure and furnish a satisfactory surety or
9 sureties for the kind of bond required herein, the court may
10 relieve the plaintiff of the obligation of filing such bond,
11 if, upon the timely application for a lien in lieu thereof
12 and accompanying proof therein submitted, the court is
13 satisfied that any such lien imposed would operate to secure
14 the assessment in the manner and to the degree as would a
15 bond. Upon a finding that such lien applied for would secure
16 the assessment at issue, the court shall enter an order, in
17 lieu of such bond, subjecting the plaintiff's real and
18 personal property (including subsequently acquired property),
19 situated in the county in which such order is entered, to a
20 lien in favor of the Department. Such lien shall be for the
21 amount of the tax and penalty claimed to be due by the
22 Department in its final assessment or revised final
23 assessment, plus the amount of interest due from such person
24 to the Department at the time when the Department issued its
25 final assessment to such person, and shall continue in full
26 force and effect until the termination of the proceedings for
27 judicial review, or until the plaintiff pays, to the
28 Department, the tax and penalty and interest to secure which
29 the lien is given, whichever happens first. In the exercise
30 of its discretion, the court may impose a lien regardless of
31 the ratio of the taxpayer's assets to the final assessment or
32 revised final assessment plus the amount of the interest and
33 penalty. Nothing in this Section shall be construed to give
34 the Department a preference over the rights of any bona fide
-170- LRB9000671KDdvA
1 purchaser, mortgagee, judgment creditor or other lien holder
2 arising prior to the entry of the order creating such lien in
3 favor of the Department: provided, however, that the word
4 "bona fide", as used in this Section, shall not include any
5 mortgage of real or personal property or any other credit
6 transaction that results in the mortgagee or the holder of
7 the security acting as trustee for unsecured creditors of the
8 taxpayer mentioned in the order for lien who executed such
9 chattel or real property mortgage or the document evidencing
10 such credit transaction. Such lien shall be inferior to the
11 lien of general taxes, special assessments and special taxes
12 heretofore or hereafter levied by any political subdivision
13 of this State. Such lien shall not be effective against any
14 purchaser with respect to any item in a retailer's stock in
15 trade purchased from the retailer in the usual course of such
16 retailer's business, and such lien shall not be enforced
17 against the household effects, wearing apparel, or the books,
18 tools or implements of a trade or profession kept for use by
19 any person. Such lien shall not be effective against real
20 property whose title is registered under the provisions of
21 the Registered Titles (Torrens) Act until the provisions of
22 Section 85 of that Act are complied with.
23 Service upon the Director of Revenue or the Assistant
24 Director of Revenue of the Department of Revenue of summons
25 issued in an action to review a final administrative decision
26 of the Department shall be service upon the Department. The
27 Department shall certify the record of its proceedings if the
28 taxpayer pays to it the sum of 75¢ per page of testimony
29 taken before the Department and 25¢ per page of all other
30 matters contained in such record, except that these charges
31 may be waived where the Department is satisfied that the
32 aggrieved party is a poor person who cannot afford to pay
33 such charges. If payment for such record is not made by the
34 taxpayer within 30 days after notice from the Department or
-171- LRB9000671KDdvA
1 the Attorney General of the cost thereof, the court in which
2 the proceeding is pending, on motion of the Department, shall
3 dismiss the complaint and (where the administrative decision
4 as to which the action for judicial review was filed is a
5 final assessment or revised final assessment) shall enter
6 judgment against the taxpayer and in favor of the Department
7 for the amount of tax and penalty shown by the Department's
8 final assessment or revised final assessment to be due, plus
9 interest as provided for in Section 50-150 of this Code from
10 the date when the liability upon which such interest accrued
11 became delinquent until the entry of the judgment in the
12 action for judicial review under the Administrative Review
13 Law, and also for costs.
14 Whenever any proceeding provided by this Code is begun
15 before the Department, either by the Department or by a
16 person subject to this Code, and such person thereafter dies
17 or becomes a person under legal disability before such
18 proceeding is concluded, the legal representative of the
19 deceased or person under legal disability shall notify the
20 Department of such death or legal disability. Such legal
21 representative, as such, shall then be substituted by the
22 Department for such person. If the legal representative
23 fails to notify the Department of his or her appointment as
24 such legal representative, the Department may, upon its own
25 motion, substitute such legal representative in the
26 proceeding pending before the Department for the person who
27 died or became a person under legal disability.
28 The changes made by Public Act 89-60 to Section 12 of the
29 Retailers' Occupation Tax Act, the predecessor to this
30 Section 77-5, apply to all actions pending on and after June
31 30, 1995 to review a final assessment or revised final
32 assessment issued by the Department.
33 ARTICLE 80. PENALTIES AND CRIMINAL VIOLATIONS
-172- LRB9000671KDdvA
1 Section 80-5. Violations under the retailers' occupation
2 tax. This Section applies to the retailers' occupation tax
3 only. When the amount due is under $300, any person engaged
4 in the business of selling tangible personal property at
5 retail in this State who fails to file a return, or who files
6 a fraudulent return, or any officer, employee or agent of a
7 corporation, member, employee or agent of a partnership, or
8 manager, member, agent, or employee of a limited liability
9 company engaged in the business of selling tangible personal
10 property at retail in this State who, as such officer,
11 employee, agent, manager, or member is under a duty to file a
12 return, or any officer, agent or employee of a corporation,
13 member, agent, or employee of a partnership, or manager,
14 member, agent, or employee of a limited liability company
15 engaged in the business of selling tangible personal property
16 at retail in this State who files or causes to be filed or
17 signs or causes to be signed a fraudulent return filed on
18 behalf of such corporation or limited liability company, or
19 any accountant or other agent who knowingly enters false
20 information on the return of any taxpayer under Article 10,
21 is guilty of a Class 4 felony.
22 Any person who or any officer or director of any
23 corporation, partner or member of any partnership, or manager
24 or member of a limited liability company that: (a) violates
25 Sections 35-5 through 35-45 or (b) fails to keep books and
26 records, or fails to produce books and records as required by
27 Section 45-10 or (c) willfully violates a rule or regulation
28 of the Department for the administration and enforcement of
29 Article 10 is guilty of a Class A misdemeanor. Any person,
30 manager or member of a limited liability company, or officer
31 or director of any corporation who engages in the business of
32 selling tangible personal property at retail after the
33 certificate of registration of that person, corporation,
34 limited liability company, or partnership has been revoked is
-173- LRB9000671KDdvA
1 guilty of a Class A misdemeanor. Each day such person,
2 corporation, or partnership is engaged in business without a
3 certificate of registration or after the certificate of
4 registration of that person, corporation, or partnership has
5 been revoked constitutes a separate offense.
6 Any purchaser who obtains a registration number or resale
7 number from the Department through misrepresentation, or who
8 represents to a seller that such purchaser has a registration
9 number or a resale number from the Department when he knows
10 that he does not, or who uses his registration number or
11 resale number to make a seller believe that he is buying
12 tangible personal property for resale when such purchaser in
13 fact knows that this is not the case is guilty of a Class 4
14 felony.
15 Any distributor, supplier or other reseller of motor fuel
16 registered pursuant to Sections 35-5 through 35-50 who fails
17 to collect the prepaid tax on invoiced gallons of motor fuel
18 sold or who fails to deliver a statement of tax paid to the
19 purchaser or to the Department as required by Sections 10-30
20 and 10-35, respectively, shall be guilty of a Class A
21 misdemeanor if the amount due is under $300, and a Class 4
22 felony if the amount due is $300 or more.
23 When the amount due is under $300, any person who accepts
24 money that is due to the Department under Article 10 from a
25 taxpayer for the purpose of acting as the taxpayer's agent to
26 make the payment to the Department, but who fails to remit
27 such payment to the Department when due is guilty of a Class
28 4 felony.
29 Any seller who collects or attempts to collect an amount
30 (however designated) which purports to reimburse such seller
31 for retailers' occupation tax liability measured by receipts
32 which such seller knows are not subject to retailers'
33 occupation tax, or any seller who knowingly over-collects or
34 attempts to over-collect an amount purporting to reimburse
-174- LRB9000671KDdvA
1 such seller for retailers' occupation tax liability in a
2 transaction which is subject to the tax that is imposed by
3 Article 10, shall be guilty of a Class 4 felony for each such
4 offense. This paragraph does not apply to an amount
5 collected by the seller as reimbursement for the seller's
6 retailers' occupation tax liability on receipts which are
7 subject to tax under Article 10 as long as such collection is
8 made in compliance with the tax collection brackets
9 prescribed by the Department in its rules and regulations.
10 When the amount due is $300 or more, any person engaged
11 in the business of selling tangible personal property at
12 retail in this State who fails to file a return, or who files
13 a fraudulent return, or any officer, employee or agent of a
14 corporation, member, employee or agent of a partnership, or
15 manager, member, agent, or employee of a limited liability
16 company engaged in the business of selling tangible personal
17 property at retail in this State who, as such officer,
18 employee, agent, manager, or member is under a duty to file a
19 return and who fails to file such return or any officer,
20 agent, or employee of a corporation, member, agent or
21 employee of a partnership, or manager, member, agent, or
22 employee of a limited liability company engaged in the
23 business of selling tangible personal property at retail in
24 this State who files or causes to be filed or signs or causes
25 to be signed a fraudulent return filed on behalf of such
26 corporation or limited liability company, or any accountant
27 or other agent who knowingly enters false information on the
28 return of any taxpayer under Article 10 is guilty of a Class
29 3 felony.
30 When the amount due is $300 or more, any person engaged
31 in the business of selling tangible personal property at
32 retail in this State who accepts money that is due to the
33 Department under Article 10 from a taxpayer for the purpose
34 of acting as the taxpayer's agent to make payment to the
-175- LRB9000671KDdvA
1 Department but fails to remit such payment to the Department
2 when due, is guilty of a Class 3 felony.
3 Any person whose principal place of business is in this
4 State and who is charged with a violation under this Section
5 shall be tried in the county where his principal place of
6 business is located unless he asserts a right to be tried in
7 another venue.
8 Any taxpayer or agent of a taxpayer who with the intent
9 to defraud purports to make a payment due to the Department
10 by issuing or delivering a check or other order upon a real
11 or fictitious depository for the payment of money, knowing
12 that it will not be paid by the depository, shall be guilty
13 of a deceptive practice in violation of Section 17-1 of the
14 Criminal Code of 1961.
15 A prosecution for any act in violation of this Section
16 may be commenced at any time within 3 years of the commission
17 of that act.
18 Section 80-10. Violations under the use tax, the service
19 occupation tax, and the service use tax.
20 (a) This Section applies to the use tax, the service
21 occupation tax, and the service use tax. When the amount due
22 is under $300, any person subject to the provisions hereof
23 who fails to file a return, or who violates any other
24 provision of Sections 50-5 through 50-140 or Section 50-155,
25 or who fails to keep books and records as required herein, or
26 who files a fraudulent return, or who wilfully violates any
27 rule or regulation of the Department for the administration
28 and enforcement of the provisions hereof, or any officer or
29 agent of a corporation or manager, member, or agent of a
30 limited liability company subject hereto who signs a
31 fraudulent return filed on behalf of such corporation or
32 limited liability company, or any accountant or other agent
33 who knowingly enters false information on the return of any
-176- LRB9000671KDdvA
1 taxpayer under Articles 15, 20, or 25, or any person who
2 violates any of the provisions of Sections 15-5, 20-5, 25-5,
3 60-20, or 80-20 hereof, or any purchaser who obtains a
4 registration number or resale number from the Department
5 through misrepresentation, or who represents to a seller that
6 such purchaser has a registration number or a resale number
7 from the Department when he knows that he does not, or who
8 uses his registration number or resale number to make a
9 seller believe that he is buying tangible personal property
10 for resale when such purchaser in fact knows that this is not
11 the case, is guilty of a Class 4 felony.
12 Any person who violates any provision of Sections 35-5
13 through 35-45, or who engages in the business of (i) selling
14 tangible personal property at retail or (ii) making sales of
15 service after his certificate of registration has been
16 revoked in accordance with Section 90-40, is guilty of a
17 Class 4 felony. Each day any such person is engaged in
18 business in violation of Sections 35-5 through 35-45, or
19 after his certificate of registration has been revoked,
20 constitutes a separate offense.
21 When the amount due is under $300, any person who accepts
22 money that is due to the Department under Articles 15, 20, or
23 25 from a taxpayer for the purpose of acting as the
24 taxpayer's agent to make the payment to the Department, but
25 who fails to remit such payment to the Department when due is
26 guilty of a Class 4 felony. Any such person who purports to
27 make such payment by issuing or delivering a check or other
28 order upon a real or fictitious depository for the payment of
29 money, knowing that it will not be paid by the depository,
30 shall be guilty of a deceptive practice in violation of
31 Section 17-1 of the Criminal Code of 1961.
32 When the amount due is $300 or more, any person subject
33 to the provisions hereof who fails to file a return or who
34 violates any other provision of Sections 50-5 through 50-140
-177- LRB9000671KDdvA
1 or Section 50-155 or who fails to keep books and records as
2 required herein or who files a fraudulent return, or who
3 wilfully violates any rule or regulation of the Department
4 for the administration and enforcement of the provisions
5 hereof, or any officer or agent of a corporation or manager,
6 member, or agent of a limited liability company subject
7 hereto who signs a fraudulent return filed on behalf of such
8 corporation or limited liability company, or any accountant
9 or other agent who knowingly enters false information on the
10 return of any taxpayer under Articles 15, 20, or 25 or any
11 person who violates any of the provisions of Sections 15-5,
12 20-5, 25-5, 60-20, or 80-20 or any purchaser who obtains a
13 registration number or resale number from the Department
14 through misrepresentation, or who represents to a seller that
15 such purchaser has a registration number or a resale number
16 from the Department when he knows that he does not or who
17 uses his registration number or resale number to make a
18 seller believe that he is buying tangible personal property
19 for resale when such purchaser in fact knows that this is not
20 the case, is guilty of a Class 3 felony.
21 When the amount due is $300 or more, any person who
22 accepts money that is due to the Department under Articles
23 15, 20, or 25 from a taxpayer for the purpose of acting as
24 the taxpayer's agent to make the payment to the Department,
25 but who fails to remit such payment to the Department when
26 due is guilty of a Class 3 felony. Any such person who
27 purports to make such payment by issuing or delivering a
28 check or other order upon a real or fictitious depository for
29 the payment of money, knowing that it will not be paid by the
30 depository shall be guilty of a deceptive practice in
31 violation of Section 17-1 of the Criminal Code of 1961.
32 Any seller or serviceman who collects or attempts to
33 collect use tax, service occupation tax, or service use tax
34 measured by receipts or selling prices which such seller or
-178- LRB9000671KDdvA
1 serviceman knows are not subject to use tax, service
2 occupation tax, or service use tax, or any serviceman who
3 collects or attempts to collect an amount (however
4 designated) which purports to reimburse such serviceman for
5 service occupation tax liability measured by receipts or
6 selling prices which such serviceman knows are not subject to
7 service occupation tax liability, or any seller or serviceman
8 who knowingly over-collects or attempts to over-collect use
9 tax, service occupation tax, or service use tax or an amount
10 purporting to be reimbursement for service occupation tax
11 liability in a transaction which is subject to the taxes that
12 are imposed by Articles 15, 20, or 25, shall be guilty of a
13 Class 4 felony for each offense. This paragraph does not
14 apply to an amount collected (i) by the seller or serviceman
15 as use tax or service use tax on receipts or selling prices
16 or (ii) by the serviceman as reimbursement for the
17 serviceman's service occupation tax liability on receipts or
18 selling prices which are subject to tax under Articles 15,
19 20, or 25 as long as such collection is made in compliance
20 with the tax collection brackets prescribed by the Department
21 in its rules and regulations.
22 A prosecution for any act in violation of this Section
23 may be commenced at any time within 3 years of the commission
24 of that act.
25 This Section does not apply if the violation in a
26 particular case also constitutes a criminal violation of
27 Section 80-5.
28 (b) For purposes of the use tax and the service use tax,
29 any taxpayer or agent of a taxpayer who with the intent to
30 defraud purports to make a payment due to the Department by
31 issuing or delivering a check or other order upon a real or
32 fictitious depository for the payment of money, knowing that
33 it will not be paid by the depository, shall be guilty of a
34 deceptive practice in violation of Section 17-1 of the
-179- LRB9000671KDdvA
1 Criminal Code of 1961.
2 (c) For purposes of the service occupation tax, if the
3 violation in a particular case also constitutes a criminal
4 violation of the provisions applying to the use tax then this
5 Section shall not apply to the violation of the provisions
6 applying to the service occupation tax.
7 (d) For purposes of the service use tax, if the
8 violation in a particular case also constitutes a criminal
9 violation of the provisions applying to the use tax or the
10 provisions applying to the service occupation tax then this
11 Section shall not apply to the violation of the provisions
12 applying to the service use tax.
13 Section 80-15. Misrepresentation of gasohol. For
14 purposes of the retailers' occupation tax and the use tax,
15 any person who knowingly sells or represents as gasohol any
16 fuel that does not qualify as gasohol under this Code is
17 guilty of a business offense and shall be fined not more than
18 $100 for each day that the sale or representation takes place
19 after notification from the Department of Agriculture that
20 the fuel in question does not qualify as gasohol.
21 Section 80-20. Advertisement of tax absorption. For
22 purposes of the use tax, the service occupation tax, and the
23 service use tax, it is unlawful for (a) any retailer to
24 advertise, hold out, or state to the public or to any
25 purchaser, consumer, or user, (b) any supplier to advertise,
26 hold out, or state to the public or to any serviceman, or (c)
27 any serviceman to advertise, hold out, or state to the public
28 or to any service customer, purchaser, consumer, or user,
29 directly or indirectly, that the tax imposed by Article 15,
30 Article 20, or Article 25 or any part thereof will be assumed
31 or absorbed by the retailer, supplier, or serviceman or that
32 they will not be added to the selling price of the property
-180- LRB9000671KDdvA
1 sold or transferred as an incident to a sale of service, or
2 if added that it or any part thereof will be refunded other
3 than when the retailer, supplier, or serviceman refunds the
4 selling price and tax because of the merchandise's being
5 returned to the retailer, supplier, or serviceman or other
6 than when the retailer, supplier, or serviceman credits or
7 refunds the tax to the purchaser, serviceman, or service
8 customer to support a claim filed with the Department under
9 this Code. Any person violating any of the provisions of
10 this Section within the State shall be guilty of a Class A
11 misdemeanor.
12 Article 85. DISPOSITION OF FUNDS
13 Section 85-5. Disposition of retailers' occupation tax
14 receipts. This Section applies to the retailers' occupation
15 tax only. Beginning January 1, 1990, each month the
16 Department shall pay into the Local Government Tax Fund, a
17 special fund in the State treasury which is hereby created,
18 the net revenue realized for the preceding month from the 1%
19 tax on sales of food for human consumption which is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks and food which has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances and
24 insulin, urine testing materials, syringes and needles used
25 by diabetics.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the County and Mass Transit District Fund, a
28 special fund in the State treasury which is hereby created,
29 4% of the net revenue realized for the preceding month from
30 the 6.25% general rate.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
-181- LRB9000671KDdvA
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to Article 10, disposition of funds shall be made as
6 provided in Section 85-25.
7 Subject to payment of amounts into the Build Illinois
8 Fund as provided in this Section and Section 85-25,
9 disposition of funds shall be made as provided in Section
10 85-30.
11 Subject to payment of amounts into the Build Illinois
12 Fund and the McCormick Place Expansion Project Fund pursuant
13 to this Article, each month the Department shall pay into the
14 Local Government Distributive Fund 0.4% of the net revenue
15 realized for the preceding month from the 5% general rate or
16 0.4% of 80% of the net revenue realized for the preceding
17 month from the 6.25% general rate, as the case may be, on the
18 selling price of tangible personal property which amount
19 shall, subject to appropriation, be distributed as provided
20 in Section 2 of the State Revenue Sharing Act. No payments
21 or distributions pursuant to this paragraph shall be made if
22 the tax imposed by Article 10 on photoprocessing products is
23 declared unconstitutional, or if the proceeds from such tax
24 are unavailable for distribution because of litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project pursuant this
27 Article, beginning July 1, 1993, the Department shall each
28 month pay into the Illinois Tax Increment Fund 0.27% of 80%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on the selling price of tangible personal
31 property.
32 Of the remainder of the moneys received by the Department
33 pursuant to Article 10, 75% thereof shall be paid into the
34 State Treasury and 25% shall be reserved in a special account
-182- LRB9000671KDdvA
1 and used only for the transfer to the Common School Fund as
2 part of the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under Article 10 for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 For purposes of this Section, net revenue realized for a
13 month shall be the revenue collected by the State pursuant to
14 Article 10, less the amount paid out during that month as
15 refunds to taxpayers for overpayment of liability.
16 Section 85-10. Disposition of use tax receipts. This
17 Section shall apply to the use tax only. Beginning January
18 1, 1990, each month the Department shall pay into the State
19 and Local Sales Tax Reform Fund, a special fund in the State
20 Treasury which is hereby created, the net revenue realized
21 for the preceding month from the 1% tax on sales of food for
22 human consumption which is to be consumed off the premises
23 where it is sold (other than alcoholic beverages, soft drinks
24 and food which has been prepared for immediate consumption)
25 and prescription and nonprescription medicines, drugs,
26 medical appliances and insulin, urine testing materials,
27 syringes and needles used by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
-183- LRB9000671KDdvA
1 this State's government.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the State and Local Sales Tax Reform Fund, a
4 special fund in the State Treasury, 20% of the net revenue
5 realized for the preceding month from the 6.25% general rate
6 on the selling price of tangible personal property, other
7 than tangible personal property which is purchased outside
8 Illinois at retail from a retailer and which is titled or
9 registered by an agency of this State's government.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the Local Government Tax Fund 16% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of
16 this State's government.
17 Of the remainder of the moneys received by the Department
18 pursuant to Article 15, disposition of funds shall be made as
19 provided in Section 85-25.
20 Subject to payment of amounts into the Build Illinois
21 Fund as provided in this Section and Section 85-25,
22 distribution of funds shall be made as provided in Section
23 85-30.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to this Article, each month the Department shall pay into the
27 Local Government Distributive Fund .4% of the net revenue
28 realized for the preceding month from the 5% general rate, or
29 .4% of 80% of the net revenue realized for the preceding
30 month from the 6.25% general rate, as the case may be, on the
31 selling price of tangible personal property which amount
32 shall, subject to appropriation, be distributed as provided
33 in Section 2 of the State Revenue Sharing Act. No payments or
34 distributions pursuant to this paragraph shall be made if the
-184- LRB9000671KDdvA
1 tax imposed by Article 15 on photoprocessing products is
2 declared unconstitutional, or if the proceeds from such tax
3 are unavailable for distribution because of litigation.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project Fund, and the
6 Local Government Distributive Fund pursuant to this Article,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to Article 15, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under Article 15 for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to Article 15, less the
28 amount paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 Section 85-15. Distribution of service occupation tax
31 receipts. This Section shall apply to the service occupation
32 tax only. Beginning January 1, 1990, each month the
33 Department shall pay into the Local Government Tax Fund the
-185- LRB9000671KDdvA
1 revenue realized for the preceding month from the 1% tax on
2 sales of food for human consumption which is to be consumed
3 off the premises where it is sold (other than alcoholic
4 beverages, soft drinks and food which has been prepared for
5 immediate consumption) and prescription and nonprescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes and needles used by diabetics.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the County and Mass Transit District Fund 4%
10 of the revenue realized for the preceding month from the
11 6.25% general rate.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the Local Government Tax Fund 16% of the
14 revenue realized for the preceding month from the 6.25%
15 general rate on transfers of tangible personal property.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 20, disposition of funds shall be made as
18 provided in Section 85-25.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in this Section and Section 85-25,
21 disposition of funds shall be made as provided in Section
22 85-30.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to this Article, each month the Department shall pay into the
26 Local Government Distributive Fund 0.4% of the net revenue
27 realized for the preceding month from the 5% general rate or
28 0.4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments
33 or distributions pursuant to this paragraph shall be made if
34 the tax imposed by Article 20 on photoprocessing products is
-186- LRB9000671KDdvA
1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to this Article,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 Remaining moneys received by the Department pursuant to
12 Article 20 shall be paid into the General Revenue Fund of the
13 State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Article 20 for the second preceding
20 month; except that this transfer shall not be made for the
21 months February through June, 1992.
22 For purposes of this Section net revenue realized for a
23 month shall be the revenue collected by the State pursuant to
24 Article 20, less the amount paid out during that month as
25 refunds to taxpayers for overpayment of liability.
26 Section 85-20. Distribution of funds from the service
27 use tax. This Section shall apply to the service use tax
28 only. Beginning January 1, 1990, each month the Department
29 shall pay into the State and Local Tax Reform Fund, a special
30 fund in the State Treasury, the net revenue realized for the
31 preceding month from the 1% tax on sales of food for human
32 consumption which is to be consumed off the premises where it
33 is sold (other than alcoholic beverages, soft drinks and food
-187- LRB9000671KDdvA
1 which has been prepared for immediate consumption) and
2 prescription and nonprescription medicines, drugs, medical
3 appliances and insulin, urine testing materials, syringes and
4 needles used by diabetics.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund 20%
7 of the net revenue realized for the preceding month from the
8 6.25% general rate on transfers of tangible personal
9 property, other than tangible personal property which is
10 purchased outside Illinois at retail from a retailer and
11 which is titled or registered by an agency of this State's
12 government.
13 Of the remainder of the moneys received by the Department
14 pursuant to Article 25, disposition of funds shall be made as
15 provided in Section 85-25.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in this Section and Section 85-25,
18 distribution of funds shall be made as provided in Section
19 85-30.
20 Subject to payment of amounts into the Build Illinois
21 Fund and the McCormick Place Expansion Project Fund pursuant
22 to this Article, each month the Department shall pay into the
23 Local Government Distributive Fund 0.4% of the net revenue
24 realized for the preceding month from the 5% general rate or
25 0.4% of 80% of the net revenue realized for the preceding
26 month from the 6.25% general rate, as the case may be, on the
27 selling price of tangible personal property which amount
28 shall, subject to appropriation, be distributed as provided
29 in Section 2 of the State Revenue Sharing Act. No payments or
30 distributions pursuant to this paragraph shall be made if the
31 tax imposed by Article 25 on photo processing products is
32 declared unconstitutional, or if the proceeds from such tax
33 are unavailable for distribution because of litigation.
34 Subject to payment of amounts into the Build Illinois
-188- LRB9000671KDdvA
1 Fund, the McCormick Place Expansion Project Fund, and the
2 Local Government Distributive Fund pursuant to this Article,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 All remaining moneys received by the Department pursuant
9 to Article 25 shall be paid into the General Revenue Fund of
10 the State Treasury.
11 As soon as possible after the first day of each month,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Motor Fuel Tax
15 Fund an amount equal to 1.7% of 80% of the net revenue
16 realized under Article 25 for the second preceding month;
17 except that this transfer shall not be made for the months
18 February through June, 1992.
19 For purposes of this Section, net revenue realized for a
20 month shall be the revenue collected by the State pursuant to
21 Article 25, less the amount paid out during that month as
22 refunds to taxpayers for overpayment of liability.
23 Section 85-25. Payments to the Build Illinois Fund. Of
24 the remainder of the moneys received by the Department
25 pursuant to Article 10, Article 15, Article 20, or Article
26 25, as the case may be, (a) 1.75% thereof shall be paid into
27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
28 and on and after July 1, 1989, 3.8% thereof shall be paid
29 into the Build Illinois Fund; provided, however, that if in
30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31 as the case may be, of the moneys received by the Department
32 and required to be paid into the Build Illinois Fund pursuant
33 to this Code and such aggregate of 2.2% or 3.8%, as the case
-189- LRB9000671KDdvA
1 may be, of moneys being hereinafter called the "Tax Code
2 Amount", and (2) the amount transferred to the Build Illinois
3 Fund from the State and Local Sales Tax Reform Fund shall be
4 less than the Annual Specified Amount (as hereinafter
5 defined), an amount equal to the difference shall be
6 immediately paid into the Build Illinois Fund from other
7 moneys received by the Department pursuant to this Code; the
8 "Annual Specified Amount" means the amounts specified below
9 for fiscal years 1986 through 1993:
10 Fiscal Year Annual Specified Amount
11 1986 $54,800,000
12 1987 $76,650,000
13 1988 $80,480,000
14 1989 $88,510,000
15 1990 $115,330,000
16 1991 $145,470,000
17 1992 $182,730,000
18 1993 $206,520,000;
19 and means the Certified Annual Debt Service Requirement (as
20 defined in Section 13 of the Build Illinois Bond Act) or the
21 Tax Code Amount, whichever is greater, for fiscal year 1994
22 and each fiscal year thereafter; and further provided, that
23 if on the last business day of any month the sum of (1) the
24 Tax Code Amount required to be deposited into the Build
25 Illinois Bond Account in the Build Illinois Fund during such
26 month and (2) the amount transferred to the Build Illinois
27 Fund from the State and Local Sales Tax Reform Fund shall
28 have been less than 1/12 of the Annual Specified Amount, an
29 amount equal to the difference shall be immediately paid into
30 the Build Illinois Fund from other moneys received by the
31 Department pursuant to this Code; and, further provided, that
32 in no event shall the payments required under the preceding
33 proviso result in aggregate payments into the Build Illinois
34 Fund pursuant to this clause (b) for any fiscal year in
-190- LRB9000671KDdvA
1 excess of the greater of (i) the Tax Code Amount or (ii) the
2 Annual Specified Amount for such fiscal year. The amounts
3 payable into the Build Illinois Fund under clause (b) of the
4 first sentence in this paragraph shall be payable only until
5 such time as the aggregate amount on deposit under each trust
6 indenture securing Bonds issued and outstanding pursuant to
7 the Build Illinois Bond Act is sufficient, taking into
8 account any future investment income, to fully provide, in
9 accordance with such indenture, for the defeasance of or the
10 payment of the principal of, premium, if any, and interest on
11 the Bonds secured by such indenture and on any Bonds expected
12 to be issued thereafter and all fees and costs payable with
13 respect thereto, all as certified by the Director of the
14 Bureau of the Budget. If on the last business day of any
15 month in which Bonds are outstanding pursuant to the Build
16 Illinois Bond Act, the aggregate of moneys deposited in the
17 Build Illinois Bond Account in the Build Illinois Fund in
18 such month shall be less than the amount required to be
19 transferred in such month from the Build Illinois Bond
20 Account to the Build Illinois Bond Retirement and Interest
21 Fund pursuant to Section 13 of the Build Illinois Bond Act,
22 an amount equal to such deficiency shall be immediately paid
23 from other moneys received by the Department pursuant to this
24 Code to the Build Illinois Fund; provided, however, that any
25 amounts paid to the Build Illinois Fund in any fiscal year
26 pursuant to this sentence shall be deemed to constitute
27 payments pursuant to clause (b) of the first sentence of this
28 paragraph and shall reduce the amount otherwise payable for
29 such fiscal year pursuant to that clause (b). The moneys
30 received by the Department pursuant to this Code and required
31 to be deposited into the Build Illinois Fund are subject to
32 the pledge, claim and charge set forth in Section 12 of the
33 Build Illinois Bond Act.
-191- LRB9000671KDdvA
1 Section 85-30. Payments to the McCormick Place Expansion
2 Project Fund. Subject to payment of amounts into the Build
3 Illinois Fund as provided in Sections 85-5 through 85-25, the
4 following specified monthly installment of the amount
5 requested in the certificate of the Chairman of the
6 Metropolitan Pier and Exposition Authority provided under
7 Section 8.25f of the State Finance Act, but not in excess of
8 sums designated as "Total Deposit", shall be deposited in the
9 aggregate from collections under Sections 50-5 through 50-140
10 into the McCormick Place Expansion Project Fund in the
11 specified fiscal years.
12 Fiscal Year Total Deposit
13 1993 $0
14 1994 53,000,000
15 1995 58,000,000
16 1996 61,000,000
17 1997 64,000,000
18 1998 68,000,000
19 1999 71,000,000
20 2000 75,000,000
21 2001 80,000,000
22 2002 84,000,000
23 2003 89,000,000
24 2004 and 93,000,000
25 each fiscal year
26 thereafter that bonds
27 are outstanding under
28 Section 13.2 of the
29 Metropolitan Pier and
30 Exposition Authority
31 Act.
32 Beginning July 20, 1993 and in each month of each fiscal
33 year thereafter, one-eighth of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
-192- LRB9000671KDdvA
1 Exposition Authority for that fiscal year, less the amount
2 deposited into the McCormick Place Expansion Project Fund by
3 the State Treasurer in the respective month under subsection
4 (g) of Section 13 of the Metropolitan Pier and Exposition
5 Authority Act, plus cumulative deficiencies in the deposits
6 required under this Section for previous months and years,
7 shall be deposited into the McCormick Place Expansion Project
8 Fund, until the full amount requested for the fiscal year,
9 but not in excess of the amount specified above as "Total
10 Deposit", has been deposited.
11 ARTICLE 90. MISCELLANEOUS PROVISIONS
12 Section 90-5. Appointment of Secretary of State for
13 service of process. Any non-resident of this State who
14 accepts the privilege extended by the laws of this State to
15 non-residents of acting as a retailer maintaining a place of
16 business within this State within the meaning of Section
17 5-110 or as a serviceman maintaining a place of business in
18 this State within the meaning of Section 5-130, any resident
19 of this State who incurs tax liability under Article 15 as a
20 seller or Article 25 as a serviceman and who subsequently
21 removes from this State or conceals his whereabouts, and any
22 person (resident or non-resident) who incurs tax liability
23 under Article 10 as a retailer, under Article 15 or Article
24 25 as a user in this State, or under Article 20 as a
25 serviceman in this State, and who removes from this State or
26 conceals his whereabouts, shall be deemed thereby to appoint
27 the Secretary of State of Illinois his agent for service of
28 process or notice in any judicial or administrative
29 proceeding under this Code. Such process or notice shall be
30 served by the Department on the Secretary of State by
31 leaving, at the office of the Secretary of State at least 15
32 days before the return day of such process or notice, a true
-193- LRB9000671KDdvA
1 and certified copy thereof, and by sending to the taxpayer by
2 registered or certified mail, postage prepaid, a like and
3 true certified copy, with an endorsement thereon of the
4 service upon said Secretary of State, addressed to such
5 taxpayer at his last known address.
6 Service of process or notice in the manner provided for
7 in this Section, under the circumstances specified in this
8 Section, shall be of the same force and validity as if served
9 upon the taxpayer personally within this State. Proof of such
10 service upon the taxpayer in this State through the Secretary
11 of State as his agent and by mailing to the last known
12 address of the taxpayer may be made in such judicial or
13 administrative proceeding by the affidavit of the Director of
14 Revenue, or by his duly authorized representative who made
15 such service, with a copy of the process or notice that was
16 so served attached to such affidavit.
17 Section 90-10. Bulk sales. If any taxpayer, outside the
18 usual course of his business, sells or transfers the major
19 part of any one or more of (A) the stock of goods which he is
20 engaged in the business of selling, (B) the furniture or
21 fixtures, (C) the machinery and equipment, or (D) the real
22 property, of any business that is subject to the provisions
23 of this Code, the purchaser or transferee of such asset
24 shall, no later than 10 days after the sale or transfer, file
25 a notice of sale or transfer of business assets with the
26 Chicago office of the Department disclosing the name and
27 address of the seller or transferor, the name and address of
28 the purchaser or transferee, the date of the sale or
29 transfer, a copy of the sales contract and financing
30 agreements which shall include a description of the property
31 sold, the amount of the purchase price or a statement of
32 other consideration for the sale or transfer, the terms for
33 payment of the purchase price, and such other information as
-194- LRB9000671KDdvA
1 the Department may reasonably require. If the purchaser or
2 transferee fails to file the above described notice of sale
3 with the Department within the prescribed time, the purchaser
4 or transferee shall be personally liable for the amount owed
5 hereunder by the seller or transferor to the Department up to
6 the amount of the reasonable value of the property acquired
7 by the purchaser or transferee. The seller or transferor
8 shall pay the Department the amount of tax, penalty and
9 interest (if any) due from him under this Code up to the date
10 of the payment of tax. The seller or transferor, or the
11 purchaser or transferee, at least 10 days before the date of
12 the sale or transfer, may notify the Department of the
13 intended sale or transfer and request the Department to audit
14 the books and records of the seller or transferor, or to do
15 whatever else may be necessary to determine how much the
16 seller or transferor owes to the Department hereunder up to
17 the date of the sale or transfer. The Department shall take
18 such steps as may be appropriate to comply with such request.
19 Any order issued by the Department pursuant to this
20 Section to withhold from the purchase price shall be issued
21 within 10 days after the Department receives notification of
22 a sale as provided in this Section. The purchaser or
23 transferee shall withhold such portion of the purchase price
24 as may be directed by the Department, but not to exceed a
25 minimum amount varying by type of business, as determined by
26 the Department pursuant to regulations, plus twice the
27 outstanding unpaid liabilities and twice the average
28 liability of preceding filings times the number of unfiled
29 returns, to cover the amount of all tax, penalty and interest
30 due and unpaid by the seller or transferor under this Code
31 or, if the payment of money or property is not involved,
32 shall withhold the performance of the condition that
33 constitutes the consideration for the sale or transfer.
34 Within 60 days after issuance of the initial order to
-195- LRB9000671KDdvA
1 withhold, the Department shall provide written notice to the
2 purchaser or transferee of the actual amount of all taxes,
3 penalties and interest then due and whether or not additional
4 amounts may become due as a result of unfiled returns,
5 pending assessments and audits not completed. The purchaser
6 or transferee shall continue to withhold the amount directed
7 to be withheld by the initial order or such lesser amount as
8 is specified by the final withholding order or to withhold
9 the performance of the condition which constitutes the
10 consideration for the sale or transfer until the purchaser
11 or transferee receives from the Department a certificate
12 showing that such tax, penalty and interest have been paid or
13 a certificate from the Department showing that no tax,
14 penalty or interest is due from the seller or transferor
15 under this Code.
16 The purchaser or transferee is relieved of any duty to
17 continue to withhold from the purchase price and of any
18 liability for tax, penalty or interest due hereunder from the
19 seller or transferor if the Department fails to notify the
20 purchaser or transferee in the manner provided herein of the
21 amount to be withheld within 10 days after the sale or
22 transfer has been reported to the Department or within 60
23 days after issuance of the initial order to withhold, as the
24 case may be. The Department shall have the right to determine
25 amounts claimed on an estimated basis to allow for non-filed
26 periods, pending assessments and audits not completed,
27 however the purchaser or transferee shall be personally
28 liable only for the actual amount due when determined.
29 If the seller or transferor fails to pay the tax, penalty
30 and interest (if any) due from him hereunder and the
31 Department makes timely claim therefor against the purchaser
32 or transferee as hereinabove provided, then the purchaser or
33 transferee shall pay the amount so withheld from the purchase
34 price to the Department. If the purchaser or transferee fails
-196- LRB9000671KDdvA
1 to comply with the requirements of this Section, the
2 purchaser or transferee shall be personally liable to the
3 Department for the amount owed hereunder by the seller or
4 transferor to the Department up to the amount of the
5 reasonable value of the property acquired by the purchaser or
6 transferee.
7 Any person who shall acquire any property or rights
8 thereto which, at the time of such acquisition, is subject to
9 a valid lien in favor of the Department shall be personally
10 liable to the Department for a sum equal to the amount of
11 taxes secured by such lien but not to exceed the reasonable
12 value of such property acquired by him.
13 Section 90-15. Liability because of amendatory Act.
14 (a) Revisions in Section 2 (which became Sections 2
15 through 2-65) of the Retailers' Occupation Tax Act by Public
16 Act 85-1135 do not affect tax liability that arose before
17 January 1, 1990.
18 (b) Revisions in Section 3 (which became Sections 3
19 through 3-80) of the Use Tax Act by Public Act 85-1135 do not
20 affect tax liability that arose before January 1, 1990.
21 (c) Revisions in Section 3 (which became Sections 3
22 through 3-50) of the Service Occupation Tax Act by Public Act
23 85-1135 do not affect tax liability that arose before January
24 1, 1990.
25 (d) Revisions in Section 3 (which became Sections 3
26 through 3-65) of the Service Use Tax Act by Public Act
27 85-1135 do not affect tax liability that arose before January
28 1, 1990.
29 Section 90-20. Sunset of exemptions, credits, and
30 deductions. The application of every exemption, credit, and
31 deduction against taxes imposed by this Code that becomes law
32 after September 16, 1994 shall be limited by a reasonable and
-197- LRB9000671KDdvA
1 appropriate sunset date. A taxpayer is not entitled to take
2 the exemption, credit, or deduction beginning on the sunset
3 date and thereafter. If a reasonable and appropriate sunset
4 date is not specified in the Public Act that creates the
5 exemption, credit, or deduction, a taxpayer shall not be
6 entitled to take the exemption, credit, or deduction
7 beginning 5 years after the effective date of the Public Act
8 creating the exemption, credit, or deduction and thereafter.
9 Section 90-25. Delivery in State.
10 (a) For purposes of the use tax and the service use tax,
11 evidence that tangible personal property was sold by any
12 person for delivery to a person residing or engaged in
13 business in this State shall be prima facie evidence that
14 such tangible personal property was sold for use in this
15 State.
16 (b) For purposes of the service occupation tax, evidence
17 that tangible personal property was sold by any supplier for
18 delivery to a person residing or engaged in business in this
19 State shall be prima facie evidence that such tangible
20 personal property was sold for the purpose of resale as an
21 incident to a sale of service taxable under Article 20.
22 Section 90-30. Tax stated as distinct item from selling
23 price.
24 (a) The use tax imposed by Article 15 shall when
25 collected be stated as a distinct item separate and apart
26 from the selling price of the tangible personal property.
27 However, where it is not possible to state the sales tax
28 separately in situations such as sales from vending machines
29 or sales of liquor by the drink the Department may by rule
30 exempt such sales from this requirement so long as purchasers
31 are notified by a sign that the tax is included in the
32 selling price.
-198- LRB9000671KDdvA
1 (b) For purposes of the service use tax, except as
2 provided in subsection (c) of this Section, the selling price
3 of each item of tangible personal property transferred
4 incident to a sale of service may be stated as a distinct
5 item by the serviceman to the service customer and the
6 service use tax imposed by Article 25 shall when collected be
7 stated as a distinct item separate and apart from the selling
8 price of the tangible personal property. If the selling
9 price of each item of tangible personal property transferred
10 incidental to a sale of service is not stated as a separate
11 item on the serviceman's billing to the service customer,
12 then the service use tax imposed by Article 25 shall be based
13 on 50% of the serviceman's entire billing to the service
14 customer.
15 (c) For purposes of the service use tax, when a
16 serviceman contracts to design, develop and produce special
17 order machinery or equipment, the service use tax imposed by
18 Article 25 shall be based on the serviceman's cost price of
19 the tangible personal property transferred incident to the
20 completion of the contract.
21 Section 90-35. Severability. If any clause, sentence,
22 Section, provision or part of this Code or the application
23 thereof to any person or circumstance shall be adjudged to be
24 unconstitutional, the remainder of this Code or its
25 application to persons or circumstances other than those to
26 which it is held invalid, shall not be affected thereby. In
27 particular, if any provision which exempts or has the effect
28 of exempting some class of users or servicemen or some kind
29 of use or service from the taxes imposed by this Code should
30 be held to constitute or to result in an invalid
31 classification or to be unconstitutional for some other
32 reason, such provision shall be deemed to be severable, with
33 the remainder of this Code without said provision being held
-199- LRB9000671KDdvA
1 constitutional.
2 Section 90-40. Applicability of the Uniform Penalty and
3 Interest Act. All of the provisions of Section 3-7 of the
4 Uniform Penalty and Interest Act, which are not inconsistent
5 with this Code, shall apply, as far as practicable, to the
6 subject matter of this Code to the same extent as if such
7 provisions were included herein.
8 Section 90-45. Low sulfur dioxide emission coal fueled
9 devices; declaratory provisions. The amendatory provisions
10 of Public Act 82-672 concerning low sulfur dioxide emission
11 coal fueled devices, as those provisions appeared in Section
12 1a-1 of the Retailers' Occupation Tax Act, Section 2a-1 of
13 the Use Tax Act, Section 2b of the Service Occupation Tax
14 Act, and Section 2b of the Service Use Tax Act, (now Sections
15 5-60 and 30-5 of this Code) are not intended to nor do they
16 make any change in the meaning of any provision in those
17 Sections but are intended to remove possible ambiguities,
18 thereby confirming the existing meaning of those Sections in
19 effect prior to October 28, 1981.
20 ARTICLE 900. CODIFICATION PROVISIONS
21 Section 900-1. Prior law.
22 (a) A provision of this Code that is the same as a prior
23 law shall be construed as a continuation of the prior law and
24 not as a new or different law.
25 (b) A citation in another Act to an Act or to a Section
26 of an Act that is continued in this Code shall be construed
27 to be a citation to that continued provision.
28 Section 900-5. Other Acts of the General Assembly. If
29 any Act of the General Assembly changes, adds, or repeals a
-200- LRB9000671KDdvA
1 provision of prior law that is continued in this Code, then
2 that change, addition, or repeal in the other Act shall be
3 construed together with this Code.
4 Section 900-10. Home rule; mandates. Nothing in this
5 Code as initially enacted (i) is a denial or limitation on
6 home rule powers if no denial or limitation existed under
7 prior law or (ii) creates a State mandate under the State
8 Mandates Act if no mandate existed under prior law.
9 Section 900-15. Titles; Articles; captions. The
10 language contained in the Titles, Articles, headings, and
11 Section and subsection caption in this Code:
12 (1) is intended only as a general description that is
13 not a part of the substantive provisions of this Code;
14 (2) does not take precedence over the content of the
15 substantive provisions of this Code; and
16 (3) shall not be used in construing the meaning of the
17 substantive provisions of this Code.
18 ARTICLE 990. STATUTES REPEALED
19 (35 ILCS 120/Act rep.)
20 (35 ILCS 105/Act rep.)
21 (35 ILCS 115/Act rep.)
22 (35 ILCS 110/Act rep.)
23 Section 990-5. Repeals. The Retailers' Occupation Tax
24 Act, the Use Tax Act, the Service Occupation Tax Act, and the
25 Service Use Tax Act are repealed.
26 ARTICLE 995. COMPARISON OF PRIOR LAW
27 PART 1. GENERAL PROVISIONS
28 Section 995-1. Explanation. Because this Act is a
-201- LRB9000671KDdvA
1 codification of existing law, this Article is included only
2 for informational purposes to show the relationship between
3 provisions of prior occupation and use tax laws and the new
4 Occupation and Use Tax Code. In Parts 10 through 25 of this
5 Article, each Part sets forth in full the prior use and
6 occupation tax Acts that have been replaced by the Occupation
7 and Use Tax Code. In Parts 10 through 25 of this Article, in
8 the text of a Section, (i) matter that is stricken indicates
9 matter that is deleted from prior law in order to state the
10 corresponding Occupation and Use Tax Code provision and (ii)
11 matter that is underscored indicates matter that is added to
12 prior law in order to state the corresponding Occupation and
13 Use Tax Code provision. If a Section of prior law has been
14 replaced by 2 or more new Sections representing Occupation
15 and Use Tax Code provisions, the beginning of the second and
16 following of those new Sections is indicated in the text as a
17 new paragraph beginning in the form "Section X-XX.".
18 This Article is repealed on the effective date of this
19 Act.
20 PART 5. DERIVATION CHART
21 [Bold text in far left column, beneath heading "OCCUPATION
22 AND USE TAX CODE", represents Article and Section numbers and
23 captions for that Code. Section references not in bold
24 directly beneath the headings "UTA", "SUTA", "SOTA", and
25 "ROTA" represent the Sections of the Use Tax Act, Service Use
26 Tax Act, Service Occupation Tax Act, and Retailers'
27 Occupation Tax Act, respectively, from which the Code
28 Sections are derived.]
29 OCCUPATION AND USE TAX CODE
30 UTA SUTA SOTA ROTA
31 Article 1. General provisions
32 Sec. 1-1. Short title
-202- LRB9000671KDdvA
1 Sec. 1-5. Applicability
2 Article 5. Definitions
3 Sec. 5-5. Acquired outside the State
4 Sec. 3-70
5 in part
6 Sec. 5-10. Bulk vending machine
7 Sec. 2 Sec. 1
8 in part in part
9 Sec. 5-15. Bullion
10 Sec. 3-20 Sec. 3-20 Sec. 3-20 Sec. 2-20
11 Sec. 5-20. Computer software
12 Sec. 3-25 Sec. 3-25 Sec. 3-25 Sec. 2-25
13 Sec. 5-25. Corporations organized for educational purposes
14 Sec. 2c Sec. 3c Sec. 2c Sec. 2h
15 Sec. 5-30. Cost price
16 Sec. 2 Sec. 2
17 in part in part
18 Sec. 5-35. Department
19 Sec. 2 Sec. 2 Sec. 2 Sec. 1
20 in part in part in part in part
21 Sec. 5-40. Gasohol
22 Sec. 3-40 in part
23 Sec. 5-45. Graphic arts production
24 Sec. 3-30 Sec. 3-30 Sec. 3-30 Sec. 2-30
25 Sec. 5-50. Gross receipts
26 Sec. 1
27 in part
28 Sec. 5-55. Like kind and character
29 Sec. 2 Sec. 1
30 in part in part
31 Sec. 5-60. Low sulfur dioxide emission coal fueled devices
32 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
33 in part in part in part in part
34 Sec. 5-65. Person
-203- LRB9000671KDdvA
1 Sec. 2 Sec. 2 Sec. 2 Sec. 1
2 in part in part in part in part
3 Sec. 5-70. Photoprocessing
4 Sec. 3-15 Sec. 3-15 Sec. 3-15 Sec. 2-15
5 Sec. 5-75. Pollution control facilities
6 Sec. 2a Sec. 2a Sec. 2a Sec. 1a
7 in part in part in part in part
8 Sec. 5-80. Production agriculture
9 Sec. 3-35 Sec. 3-35 Sec. 3-35 Sec. 2-35
10 Sec. 5-85. Purchase at retail
11 Sec. 2
12 in part
13 Sec. 5-90. Purchased from a serviceman
14 Sec. 2
15 in part
16 Sec. 5-95. Purchaser
17 Sec. 2 Sec. 2 Sec. 1
18 in part in part in part
19 Sec. 5-100. Reseller of motor fuel
20 Sec. 1
21 in part
22 Sec. 5-105. Retailer
23 1a; Sec. 2 Sec. 1c
24 in part
25 Sec. 5-110. Retailer maintaining a business in State
26 Sec. 2
27 in part
28 Sec. 5-115. Sale at retail
29 Sec. 2 Sec. 2 Sec. 2 Sec. 1
30 in part in part in part in part
31 Sec. 5-120. Selling price
32 Sec. 2 Sec. 2 Sec. 1
33 in part; 2b in part in part
34 Sec. 5-125. Serviceman
-204- LRB9000671KDdvA
1 Sec. 2 Sec. 2
2 in part in part
3 Sec. 5-130. Serviceman maintaining a business in State
4 Sec. 2
5 in part
6 Sec. 5-135. Supplier
7 Sec. 2 Sec. 2
8 in part in part
9 Sec. 5-140. Transfer
10 Sec. 2
11 in part
12 Sec. 5-145. Use
13 Sec. 2 Sec. 2
14 in part in part
15 Sec. 5-150. Watercraft
16 Sec. 2 in Sec. 3
17 in part; 9 in part
18 Article 10. Imposition of the retailers' occupation tax
19 Sec. 10-5. Tax imposed
20 Sec. 2
21 Sec. 10-10. Tax additional
22 Sec. 14
23 Sec. 10-15. Rate of tax
24 Sec. 2-10
25 Sec. 10-20. Purchaser refunds
26 Sec. 2-40
27 Sec. 10-25. Serviceman transfer
28 Sec. 2-55
29 Sec. 10-30. Prepayment of tax by motor fuel retailer
30 Sec. 2d
31 Sec. 10-35. Motor fuel distributor or supplier; statement
32 Sec. 2e
33 Sec. 10-40. Reseller of motor fuel; filing of returns
34 Sec. 2f
-205- LRB9000671KDdvA
1 Sec. 10-45. Procedure for filing return of motor
2 fuel reseller
3 Sec. 2g
4 Article 15. Imposition of the use tax
5 Sec. 15-5. Tax imposed
6 Sec. 3
7 Sec. 15-10. Tax additional
8 Sec. 15
9 in part
10 Sec. 15-15. Rate of tax
11 Sec. 3-10
12 Sec. 15-20. Collection
13 Sec. 3-45
14 Sec. 15-25. R.O.T. nontaxability
15 Sec. 3-65
16 Sec. 15-30. Serviceman transfer
17 Sec. 3-75
18 Sec. 15-35. Method of stating tax
19 Sec. 3a
20 Article 20. Imposition of the service occupation tax
21 Sec. 20-5. Tax imposed
22 Sec. 3
23 Sec. 20-10. Tax additional
24 Sec. 16
25 Sec. 20-15. Rate of tax
26 Sec. 3-10
27 Sec. 20-20. Collection
28 Sec. 3-40
29 Article 25. Imposition of the service use tax
30 Sec. 25-5. Tax imposed
31 Sec. 3
32 Sec. 25-10. Tax additional
33 Sec. 16
34 Sec. 25-15. Rate of tax
-206- LRB9000671KDdvA
1 Sec. 3-10
2 Sec. 25-20. Collection
3 Sec. 3-40
4 Sec. 25-25. S.O.T. nontaxability
5 Sec. 3-55
6 Sec. 25-30. Method of stating tax
7 Sec. 3a
8 Sec. 25-35. Selling price of tangible personal property
9 Sec. 3d
10 Article 30. Exemptions, exclusions, and credits
11 Sec. 30-5. Pollution control facilities
12 Sec. 2a Sec. 2a Sec. 2a Sec. 1a
13 in part in part in part in part
14 Sec. 30-10. Property used in pollution control facilities
15 Sec. 1e
16 Sec. 30-15. Low sulfur dioxide emission coal fueled devices
17 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
18 in part in part in part in part
19 Sec. 30-20. Designated tangible personal property
20 Sec. 1d
21 Sec. 30-25. Machinery used in high impact service facility
22 Sec. 1j
23 Sec. 30-30. High impact business; building materials
24 Sec. 5l
25 Sec. 30-35. Machinery used in aircraft maintenance facility
26 Sec. 1m
27 Sec. 30-40. Property used in aircraft maintenance facility
28 Sec. 1n
29 Sec. 30-45. Personal property used in infrastructure repairs
30 Sec. 3-5(25) Sec. 3-5(18) Sec. 3-5(19) Sec. 2-5(31)
31 Sec. 30-50. Horses
32 Sec. 3-5(21) Sec. 3-5(14) Sec. 3-5(15) Sec. 2-5(27)
33 Sec. 30-55. Semen
34 Sec. 3-5(20) Sec. 3-5(13) Sec. 3-5(14) Sec. 2-5(26)
-207- LRB9000671KDdvA
1 Sec. 30-60. Farm chemicals
2 Sec. 3-5(7) Sec. 2-5(1)
3 Sec. 30-65. Farm machinery and equipment
4 Sec. 3-5(11) Sec. 3-5(7) Sec. 3-5(7) Sec. 2-5(2)
5 Sec. 30-70. Distillation machinery and equipment
6 Sec. 3-5(17) Sec. 2 Sec. 2 Sec. 2-5(3)
7 in part in part
8 Sec. 30-75. Oil field equipment
9 Sec. 3-5(14) Sec. 3-5(10) Sec. 3-5(10) Sec. 2-5(19)
10 Sec. 30-80. Coal exploration equipment
11 Sec. 3-5(16) Sec. 3-5(12) Sec. 3-5(12) Sec. 2-5(21)
12 Sec. 30-85. Photoprocessing machinery and equipment
13 Sec. 3-5(15) Sec. 3-5(11) Sec. 3-5(11) Sec. 2-5(20)
14 Sec. 30-90. Graphic arts machinery and equipment
15 Sec. 3-5(6) Sec. 3-5(5) Sec. 3-5(5) Sec. 2-5(4)
16 Sec. 30-95. Manufacturing and assembling machinery
17 Sec. 3-5(18) Sec. 2 Sec. 2 Sec. 2-5(14)
18 in part in part
19 Sec. 30-100. Manufacturing and assembling exemption
20 Sec. 3-50 Sec. 2 Sec. 2 Sec. 2-45
21 in part in part
22 Sec. 30-105. Motor vehicle used for renting
23 Sec. 3-5(10) Sec. 2-5(5)
24 Sec. 30-110. Passenger car subject to replacement tax
25 Sec. 3-5(5) Sec. 2-5(7)
26 Sec. 30-115. Motor vehicle sold to non-resident
27 Sec. 3-55 Sec. 2-5(25)
28 in part
29 Sec. 30-120. Petroleum products
30 Sec. 2-5(16)
31 Sec. 30-125. Petroleum products sold to air carrier
32 Sec. 3-5(12) Sec. 3-5(8) Sec. 3-5(8) Sec. 2-5(22)
33 Sec. 30-130. Fuel consumed by ships
34 Sec. 2-5(24)
-208- LRB9000671KDdvA
1 Sec. 30-135. Property sold to rail common carrier
2 Sec. 3-55(g) Sec. 2 Sec. 2 Sec. 2-5(17)
3 in part in part
4 Sec. 30-140. Rolling stock; personal property
5 Sec. 3-55(b) Sec. 2 Sec. 2 Sec. 2-5(12)
6 in part in part
7 Sec. 30-145. Rolling stock; proceeds from sales
8 Sec. 3-55(c) Sec. 2 Sec. 2 Sec. 2-5(13)
9 in part in part
10 Sec. 30-150. Rolling stock exemption
11 Sec. 3-60 Sec. 3-50 Sec. 2-50
12 Sec. 30-155. Personal property sold by students
13 Sec. 3-5(9) Sec. 3-5(6) Sec. 3-5(6) Sec. 2-5(6)
14 Sec. 30-160. Property sold to non-profit music organization
15 Sec. 3-5(3) Sec. 3-5(3) Sec. 3-5(3) Sec. 2-5(9)
16 Sec. 30-165. Property sold for the benefit of the elderly
17 Sec. 3-5(1) Sec. 3-5(1) Sec. 3-5(1) Sec. 2-5(10)
18 Sec. 30-170. Property sold for charity, religion or education
19 Sec. 3-5(4) Sec. 2 Sec. 2 Sec. 2-5(11)
20 in part in part
21 Sec. 30-175. County fair association
22 Sec. 3-5(2) Sec. 3-5(2) Sec. 3-5(2) Sec. 2-5(8)
23 Sec. 30-180. Property donated for disaster relief
24 Sec. 3-5(24) Sec. 3-5(17) Sec. 3-5(18) Sec. 2-5(30)
25 Sec. 30-185. Computers for hospitals
26 Sec. 3-5(22) Sec. 3-5(15) Sec. 3-5(16) Sec. 2-5(28)
27 Sec. 30-190. Property sold for lease to government
28 Sec. 3-5(23) Sec. 3-5(16) Sec. 3-5(17) Sec. 2-5(29)
29 Sec. 30-195. Food and drug sold by non-profit organization
30 Sec. 3-5.5 Sec. 3-5.5 Sec. 3-5(13); Sec. 2-5.5
31 ;3-5.5
32 Sec. 30-200. Mandatory service charge
33 Sec. 3-5(13) Sec. 3-5(9) Sec. 3-5(9) Sec. 2-5(15)
34 Sec. 30-205. Legal tender
-209- LRB9000671KDdvA
1 Sec. 3-5(8) Sec. 3-5(4) Sec. 3-5(4) Sec. 2-5(18)
2 Sec. 30-210. Florist
3 Sec. 3-5(19) Sec. 2-5(23)
4 Sec. 30-215. Interstate commerce exemption
5 Sec. 3-45 Sec. 2-60
6 Sec. 30-220. Multistate exemption
7 Sec. 3-55 Sec. 3-45
8 in part
9 Sec. 30-225. Property acquired by nonresident
10 Sec. 3-70 Sec. 3-60
11 in part
12 Sec. 30-230. Manufacturer's purchase credit
13 Sec. 3-85 Sec. 3-70
14 Sec. 30-235. Sale of service
15 Sec. 2 Sec. 2
16 in part in part
17 Sec. 30-240. Election not to be sale of service
18 Sec. 2 Sec. 2
19 in part in part
20 Sec. 30-245. Maintenance agreement
21 Sec. 2 Sec. 2
22 in part in part
23 Article 35. Application, registration and bonding
24 Sec. 35-5. Certificate of registration
25 Sec. 2a
26 in part
27 Sec. 35-10. Use tax
28 Sec. 6
29 in part
30 Sec. 35-15. Service occupation tax
31 Sec. 6
32 in part
33 Sec. 35-20. Service use tax
34 Sec. 6
-210- LRB9000671KDdvA
1 in part
2 Sec. 35-25. Bonds
3 Sec. 2a
4 in part
5 Sec. 35-30. Issuance of certificate of registration
6 Sec. 6 Sec. 6 Sec. 6 Sec. 2a
7 in part in part in part in part
8 Sec. 35-35. Prior continuous compliance taxpayer
9 Sec. 2a
10 in part
11 Sec. 35-40. Registrants in default
12 Sec. 2a
13 in part
14 Sec. 35-45. Hearings
15 Sec. 2a
16 in part
17 Sec. 35-50. Resale number
18 Sec. 2c
19 Sec. 35-55. High impact business
20 Sec. 1f
21 Sec. 35-60. Exemption identification number
22 Sec. 1g
23 Sec. 35-65. Exemption identification number; list
24 Sec. 1h
25 Sec. 35-70. Exemption from bonding
26 Sec. 10a Sec. 10a Sec. 10a Sec. 2i
27 Sec. 35-75. Exemption from bonding; Dept. of Revenue
28 Sec. 5d
29 Sec. 35-80. Aircraft maintenance facility
30 Sec. 1k
31 Sec. 35-85. High impact service facility
32 Sec. 1i
33 Sec. 35-90. Enterprise zones; building materials
34 Sec. 5k
-211- LRB9000671KDdvA
1 Article 40. Confidentiality
2 Sec. 40-5. Information confidential; exceptions
3 Sec. 11
4 Article 45. Bookkeeping
5 Sec. 45-5. Applicability of Article
6 Sec. 45-10. Records to be kept
7 Sec. 7
8 Sec. 45-15. Records; taxes
9 Sec. 11 Sec. 11 Sec. 11
10 Article 50. Returns
11 Sec. 50-5. Applicability of Section 50-10 through 50-140
12 Sec. 50-10. Monthly returns
13 Sec. 3
14 in part
15 Sec. 50-15. Use tax returns
16 Sec. 9
17 in part
18 Sec. 50-20. Service occupation tax returns
19 Sec. 9
20 in part
21 Sec. 50-25. Service use tax returns
22 Sec. 9
23 in part
24 Sec. 50-30. Quarterly returns
25 Sec. 9 Sec. 9 Sec. 9 Sec. 3
26 in part in part in part in part
27 Sec. 50-35. Filing returns quarterly or annually
28 Sec. 9 Sec. 9 Sec. 9 Sec. 3
29 in part in part in part in part
30 Sec. 50-40. Failure to sign a return
31 Sec. 9 Sec. 9 Sec. 9 Sec. 3
32 in part in part in part in part
33 Sec. 50-45. Signature on return for corporation
34 Sec. 3
-212- LRB9000671KDdvA
1 in part
2 Sec. 50-50. Statement of prepaid tax
3 Sec. 3
4 in part
5 Sec. 50-55. Rounding
6 Sec. 3
7 in part
8 Sec. 50-60. Cessation of business
9 Sec. 9 Sec. 9 Sec. 9 Sec. 3
10 in part in part in part in part
11 Sec. 50-65. Multiple businesses
12 Sec. 9 Sec. 9 Sec. 9 Sec. 3
13 in part in part in part in part
14 Sec. 50-70. Selling price of property on return
15 Sec. 9 Sec. 9
16 in part in part
17 Sec. 50-75. Joint returns
18 Sec. 9 Sec. 9 Sec. 9
19 in part in part in part
20 Sec. 50-80. Separate return for certain registered property
21 Sec. 9 Sec. 3
22 in part in part
23 Sec. 50-85. Retail of vehicles, watercraft, aircraft or
24 trailers
25 Sec. 3
26 in part
27 Sec. 50-90. Transaction reporting return
28 Sec. 9 in Sec. 3
29 in part in part
30 Sec. 50-95. Annual information return
31 Sec. 9 Sec. 3
32 in part in part
33 Sec. 50-100. Electronic funds transfer
34 Sec. 9 Sec. 9 Sec. 9 Sec. 3
-213- LRB9000671KDdvA
1 in part in part in part in part
2 Sec. 50-105. Refunds
3 Sec. 9 Sec. 9 Sec. 9 Sec. 3
4 in part in part in part in part
5 Sec. 50-110. Payment by retailer or serviceman
6 Sec. 9 Sec. 9 Sec. 9 Sec. 3
7 in part in part in part in part
8 Sec. 50-115. Conditional sales contract
9 Sec. 9 Sec. 9
10 in part in part
11 Sec. 50-120. Quarter-monthly payments
12 Sec. 9 Sec. 3
13 in part in part
14 Sec. 50-125. Credit memorandum
15 Sec. 9 Sec. 3
16 in part in part
17 Sec. 50-130. Credit for motor fuel retailer
18 Sec. 3
19 in part
20 Sec. 50-135. Manufacturer, importer, or wholesaler payment
21 Sec. 9 Sec. 9 Sec. 3
22 in part in part in part
23 Sec. 50-140. Fair reports
24 Sec. 3
25 in part
26 Sec. 50-145. Examination and correction of return
27 Sec. 4
28 Sec. 50-150. Failure to make return
29 Sec. 5
30 Sec. 50-155. Requirement to file return
31 Sec. 10 Sec. 10
32 Sec. 50-160. Manufacturer's Purchase Credit
33 Sec. 9 Sec. 3
34 in part in part
-214- LRB9000671KDdvA
1 Article 55. Credits and Refunds
2 Sec. 55-5. Erroneous payment; credit or refund
3 Sec. 6 in
4 in part
5 Sec. 55-10. Erroneous payment; creditor refund; taxes
6 Sec. 19 Sec. 17 Sec. 17
7 in part in part in part
8 Sec. 55-15. Credit or refund; payment and interest
9 Sec. 19 Sec. 17 Sec. 17 Sec.6
10 in part in part in part in part
11 Sec. 55-20. Claims for credit or refund
12 Sec. 19 Sec. 17 Sec. 17 Sec. 6a
13 in part in part in part
14 Sec. 55-25. Determination of claim; hearing
15 Sec. 20 Sec. 18 Sec. 18 Sec. 6b
16 in part in part in part in part
17 Sec. 55-30. Final determination of claim
18 Sec. 20 Sec. 18 Sec. 18 Sec. 6c
19 in part in part in part
20 Sec. 55-35. Limitations
21 Sec. 21 Sec. 19 Sec. 19 Sec. 6
22 in part
23 Sec. 55-40. Application of credit or refund against tax
24 Sec. 22 Sec. 20 Sec. 20
25 Article 60. Collection
26 Sec. 60-5. Tax collected as debt owed to State; exception
27 Sec. 8 Sec. 8 Sec. 8
28 Sec. 60-10. Foreign retailers; permit to collect tax
29 Sec. 6 Sec. 7 Sec. 6
30 in part in part
31 Sec. 60-15. Foreign retailers; revocation of permit to collect
32 Sec. 13 Sec. 14
33 Sec. 60-20. Receipts; list of agents
34 Sec. 5 Sec. 5 Sec. 5
-215- LRB9000671KDdvA
1 Article 65. Liens
2 Sec. 65-5. Tax lien
3 Sec. 5a
4 Sec. 65-10. Records of State tax liens
5 Sec. 5b
6 Sec. 65-15. Tax liens; certificate of release
7 Sec. 5c
8 Sec. 65-20. Tax liens on realty; enforcement
9 Sec. 5e
10 Sec. 65-25. Demand for payment of tax
11 Sec. 5f
12 Sec. 65-30. Inferior tax judgment
13 Sec. 5g
14 Article 70. Hearings
15 Sec. 70-5. Revocation of certificate of registration
16 Sec. 2b
17 Sec. 70-10. Investigations and hearings
18 Sec. 8
19 Sec. 70-15. Incriminating testimony
20 Sec. 9
21 Sec. 70-20. Subpoenas; witnesses; depositions
22 Sec. 10
23 Article 75. Administrative Procedure
24 Sec. 75-5. Application of Administrative Procedure Act
25 Sec. 12b Sec. 20a Sec. 20a Sec. 11a
26 Article 77. Administrative Review Law
27 Sec. 77-10. Review under Administrative Review Law
28 Sec. 12
29 Article 80. Penalties and Criminal Violations
30 Sec. 80-5. Violations under retailers' occupation tax only
31 Sec. 13
32 Sec. 80-10. Violations
33 Sec. 14 Sec. 15 Sec. 15
34 Sec. 80-15. Misrepresentation of gasohol
-216- LRB9000671KDdvA
1 Sec. 3-40
2 in part
3 Sec. 80-20. Advertisement of tax absorption
4 Sec. 7 Sec. 7a Sec. 7
5 Article 85. Disposition of funds
6 Sec. 85-5. Disposition of retailers occupation tax receipts
7 Sec. 3
8 in part
9 Sec. 85-10. Disposition of use tax receipts
10 Sec. 9
11 in part
12 Sec. 85-15. Disposition of service occupation tax receipts
13 Sec. 9
14 in part
15 Sec. 85-25. Disposition of service use tax receipts
16 Sec. 9
17 in part
18 Sec. 85-20. Build Illinois Fund
19 Sec. 9 Sec. 9 Sec. 9 Sec. 3
20 in part in part in part in part
21 Sec. 85-30. McCormick Place Expansion Project Fund
22 Sec. 9 Sec. 9 Sec. 9 Sec. 3
23 in part in part in part in part
24 Article 90. Miscellaneous Provisions
25 Sec. 90-5. Appointment of Secretary of State
26 Sec. 12a Sec. 13 Sec. 13 Sec. 5i
27 Sec. 90-10. Bulk sales
28 Sec. 5j
29 Sec. 90-15. Liability because of amendatory Act
30 Sec. 3-80 Sec. 3-65 Sec. 3-50 Sec. 2-65
31 Sec. 90-20. Sunset of exemptions, credits and deductions
32 Sec. 3-90 Sec. 3-75 Sec. 3-55 Sec. 2-70
33 Sec. 90-25. Delivery in State
34 Sec. 4 Sec. 4 Sec. 4
-217- LRB9000671KDdvA
1 Sec. 90-30. Tax stated as distinct from selling price
2 Sec. 3a Sec. 3a; 3d
3 Sec. 90-35. Severability
4 Sec. 18 Sec. 21 Sec. 21
5 Sec. 90-40. Applicability of Uniform Penalty and Interest Act
6 Sec. 12 Sec. 12 Sec. 12
7 Sec. 90-45. Low sulfur dioxide emission coal fueled
8 devices; declaratory provisions
9 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
10 in part in part in part in part
11 PART 10. RETAILERS' OCCUPATION TAX ACT
12 DISPOSITION CHART
13 RETAILERS' OCCUPATION TAX ACT
14 Retailers'
15 Occupation Tax
16 Act (35/120) Occupation and Use Tax Code
17 -------------------------------------------------------------
18 Sec. 1 Sec. 5-115. Sale at retail
19 Sec. 5-95. Purchaser
20 Sec. 5-100. Reseller of motor fuel
21 Sec. 5-120. Selling price
22 Sec. 5-55. Like kind and character
23 Sec. 5-50. Gross receipts
24 Sec. 5-35. Department
25 Sec. 5-65. Person
26 Sec. 5-10. Bulk vending machine
27 Sec. 1a Sec. 5-75. Pollution control facilities
28 Sec. 30-5. Pollution control facilities
29 Sec. 1a-1 Sec. 5-60. Low sulfur dioxide emission
30 coal fueled devices
-218- LRB9000671KDdvA
1 Sec. 30-15. Low sulfur dioxide emission
2 coal fueled devices
3 Sec. 90-45. Low sulfur dioxide emission
4 coal fueled devices;
5 declaratory provisions
6 Sec. 1c Sec. 5-105. Retailer
7 Sec. 1d Sec. 30-20. Designated tangible personal
8 property
9 Sec. 1e Sec. 30-10. Property used in pollution
10 control facilities
11 Sec. 1f Sec. 35-55. High impact business
12 Sec. 1g Sec. 35-60. Exemption identification number
13 Sec. 1h Sec. 35-65. Exemption identification
14 number; list
15 Sec. 1i Sec. 35-85. High impact service facility
16 Sec. 1j Sec. 30-25. Machinery used in high impact
17 service facility
18 Sec. 1k Sec. 35-80. Aircraft maintenance facility
19 Sec. 1m Sec. 30-35 Machinery used in aircraft
20 maintenance facility
21 Sec. 1n Sec. 30-40. Property used in aircraft
22 maintenance facility
23 Sec. 2 Sec. 10-5. Tax imposed
24 Sec. 2-5(1) Sec. 30-60. Farm chemicals
25 Sec. 2-5(2) Sec. 30-65. Farm machinery and equipment
26 Sec. 2-5(3) Sec. 30-70. Distillation machinery and
27 equipment
-219- LRB9000671KDdvA
1 Sec. 2-5(4) Sec. 30-90. Graphic arts machinery and
2 equipment
3 Sec. 2-5(5) Sec. 30-105. Motor vehicle used for renting
4 Sec. 2-5(6) Sec. 30-155. Personal property sold by
5 students
6 Sec. 2-5(7) Sec. 30-110. Passenger car subject to
7 replacement tax
8 Sec. 2-5(8) Sec. 30-175. County fair association
9 Sec. 2-5(9) Sec. 30-160. Property sold to non-profit
10 music organization
11 Sec. 2-5(10) Sec. 30-165. Property sold for the benefit
12 of the elderly
13 Sec. 2-5(11) Sec. 30-170. Property sold for charity,
14 religion or education
15 Sec. 2-5(12) Sec. 30-140. Rolling stock; personal
16 property
17 Sec. 2-5(13) Sec. 30-145. Rolling stock; proceeds from
18 sales
19 Sec. 2-5(14) Sec. 30-95. Manufacturing and assembling
20 machinery
21 Sec. 2-5(15) Sec. 30-200. Mandatory service charge
22 Sec. 2-5(16) Sec. 30-120. Petroleum products
23 Sec. 2-5(17) Sec. 30-135. Property sold to rail common
24 carrier
25 Sec. 2-5(18) Sec. 30-205. Legal tender
26 Sec. 2-5(19) Sec. 30-75. Oil field equipment
27 Sec. 2-5(20) Sec. 30-85. Photoprocessing machinery and
28 equipment
29 Sec. 2-5(21) Sec. 30-80. Coal exploration equipment
30 Sec. 2-5(22) Sec. 30-125. Petroleum products sold to
31 air carrier
32 Sec. 2-5(23) Sec. 30-210. Florist
33 Sec. 2-5(24) Sec. 30-130. Fuel consumed by ships
-220- LRB9000671KDdvA
1 Sec. 2-5(25) Sec. 30-115. Motor vehicle sold to
2 non-resident
3 Sec. 2-5(26) Sec. 30-55. Semen
4 Sec. 2-5(27) Sec. 30-50. Horses
5 Sec. 2-5(28) Sec. 30-185. Computers for hospitals
6 Sec. 2-5(29) Sec. 30-190. Property sold for lease to
7 government
8 Sec. 2-5(30) Sec. 30-180. Property donated for
9 disaster relief
10 Sec. 2-5(31) Sec. 30-45. Personal property used in
11 infrastructure repairs
12 Sec. 2-5.5 Sec. 30-195. Food and drug sold by
13 non-profit organization
14 Sec. 2-10 Sec. 10-15. Rate of tax
15 Sec. 2-15 Sec. 5-70. Photoprocessing
16 Sec. 2-20 Sec. 5-15. Bullion
17 Sec. 2-25 Sec. 5-20. Computer software
18 Sec. 2-30 Sec. 5-45. Graphic arts production
19 Sec. 2-35 Sec. 5-80. Production agriculture
20 Sec. 2-40 Sec. 10-20. Purchaser refunds
21 Sec. 2-45 Sec. 30-100. Manufacturing and assembling
22 exemption
23 Sec. 2-50 Sec. 30-150. Rolling stock exemption
24 Sec. 2-55 Sec. 10-25. Serviceman transfer
25 Sec. 2-60 Sec. 30-215. Interstate commerce exemption
26 Sec. 2-65 Sec. 90-15. Liability because of
27 amendatory Act
-221- LRB9000671KDdvA
1 Sec. 2-70 Sec. 90-20. Sunset of exemptions, credits,
2 and deductions
3 Sec. 2a Sec. 35-5. Certificate of registration
4 Sec. 35-25. Bonds
5 Sec. 35-30. Issuance of certificate of
6 registration
7 Sec. 35-40. Registrants in default
8 Sec. 35-45. Hearings
9 Sec. 2b Sec. 70-5. Revocation of certificate of
10 registration
11 Sec. 2c Sec. 35-50. Resale number
12 Sec. 2d Sec. 10-30. Prepayment of tax by motor
13 fuel retailer
14 Sec. 2e Sec. 10-35. Motor fuel distributor or
15 supplier; statement
16 Sec. 2f Sec. 10-40. Reseller of motor fuel; filing
17 of returns
18 Sec. 2g Sec. 10-45. Procedures for filing return
19 of motor fuel reseller
20 Sec. 2h Sec. 5-25. Corporations organized for
21 education purposes
22 Sec. 2i Sec. 35-70. Exemption from bonding
23 Sec. 3 Sec. 50-10. Monthly returns
24 Sec. 50-40. Failure to sign a return
25 Sec. 50-50. Statement of prepaid tax
26 Sec. 50-160. Manufacturer's Purchase Credit
27 Sec. 50-30. Quarterly returns
28 Sec. 50-55. Rounding
29 Sec. 50-100. Electronic funds transfer
-222- LRB9000671KDdvA
1 Sec. 50-35. Filing returns quarterly
2 or annually
3 Sec. 50-60. Cessation of business
4 Sec. 50-65. Multiple businesses
5 Sec. 50-80. Separate return for certain
6 registered property
7 Sec. 5-150. Watercraft
8 Sec. 50-85. Retail of vehicles, watercraft,
9 watercraft, aircraft, or
10 trailers
11 Sec. 50-90. Transaction reporting return
12 Sec. 50-105. Refunds
13 Sec. 50-45. Signature on returns for
14 corporation
15 Sec. 50-110. Payment of tax by retailer
16 or serviceman
17 Sec. 50-120. Quarter-monthly payments
18 Sec. 50-125. Credit memorandum
19 Sec. 50-130. Credit for motor fuel retailer
20 Sec. 85-5. Disposition of retailers'
21 occupation tax receipts
22 Sec. 85-25. Build Illinois Fund
23 Sec. 85-30. McCormick Place Expansion
24 Project Fund
25 Sec. 50-95. Annual information return
26 Sec. 50-135. Manufacturer, importer, or
27 wholesaler payment
28 Sec. 50-140. Fair reports
29 Sec. 4 Sec. 50-145. Examination and correction
30 of returns
31 Sec. 5 Sec. 50-150. Failure to make return
32 Sec. 5a Sec. 65-5. Tax lien
33 Sec. 5b Sec. 65-10. Records of State tax liens
-223- LRB9000671KDdvA
1 Sec. 5c Sec. 65-15. Tax liens; certificate
2 of release
3 Sec. 5d Sec. 35-75. Exemption from bonding;
4 Dept. of Revenue
5 Sec. 5e Sec. 65-20. Tax liens on realty;
6 enforcement
7 Sec. 5f Sec. 65-25. Demand for payment of tax
8 Sec. 5g Sec. 65-30. Inferior tax judgment
9 Sec. 5i Sec. 90-5. Appointment of Secretary
10 of State
11 Sec. 5j Sec.90-10. Bulk sales
12 Sec. 5k Sec. 35-90. Enterprise zone; building
13 materials
14 Sec. 5l Sec. 30-30. High impact building
15 materials; building materials
16 Sec. 6 Sec. 55-5. Erroneous payment; credit
17 or refund
18 Sec. 55-35. Limitations
19 Sec. 55-15. Credit or refund; payment
20 and interest
21 Sec. 6a Sec. 55-20. Claims for credit or refund
22 Sec. 6b Sec. 55-25. Determination of claim;
23 hearing
24 Sec. 6c Sec. 55-30. Final determination of claim
25 Sec. 7 Sec. 45-10. Records to be kept
26 Sec. 8 Sec. 70-10. Investigations and hearings
27 Sec. 9 Sec. 70-15. Incriminating testimony
-224- LRB9000671KDdvA
1 Sec. 10 Sec. 70-20. Subpoenas; witnesses;
2 depositions
3 Sec. 11 Sec. 40-5. Information confidential;
4 exceptions
5 Sec. 11a Sec. 75-5. Application of the
6 Administrative Procedure Act
7 Sec. 12 Sec. 77-5. Review under Administrative
8 Review Law
9 Sec. 13 Sec. 80-5. Violations under retailers'
10 occupation tax only
11 Sec. 14 Sec. 10-10. Tax additional
12 (35 ILCS 120/) (Retailers' Occupation Tax Act.)
13 Title: An Act in relation to a tax upon persons engaged in
14 the business of selling tangible personal property.
15 Cite: 35 ILCS 120/1 et seq.
16 From: Ch. 120, par. 440 et seq.
17 Source: L. 1933, p. 924. Title amended by P.A. 83-1080.
18 Date: Approved January 28, 1933.
19 Short title: Retailers' Occupation Tax Act.
20 (35 ILCS 120/1) (from Ch. 120, par. 440)
21 Section 5-115. Sale at retail. Sec. 1. Definitions.
22 (a) "Sale at retail" means any transfer of the ownership
23 of or title to tangible personal property to a purchaser, for
24 the purpose of use or consumption, and not for the purpose of
25 resale in any form as tangible personal property to the
26 extent not first subjected to a use for which it was
27 purchased, for a valuable consideration: provided that the
28 property purchased is deemed to be purchased for the purpose
29 of resale, despite first being used, to the extent to which
30 it is resold as an ingredient of an intentionally produced
-225- LRB9000671KDdvA
1 product or byproduct of manufacturing. For this purpose,
2 slag produced as an incident to manufacturing pig iron or
3 steel and sold is considered to be an intentionally produced
4 byproduct of manufacturing. "Sale at retail" shall be
5 construed to include any transfer, whether made for or
6 without a valuable consideration, for resale in any form as
7 tangible personal property unless made in compliance with
8 Section 35-50 of this Code. Transactions whereby the
9 possession of the property is transferred but the seller
10 retains the title as security for payment of the selling
11 price shall be deemed to be sales.
12 "Sale at retail" shall be construed to include any
13 Illinois florist's sales transaction in which the purchase
14 order is received in Illinois by a florist and the sale is
15 for use or consumption, but the Illinois florist has a
16 florist in another state deliver the property to the
17 purchaser or the purchaser's donee in such other state.
18 The purchase, employment and transfer of such tangible
19 personal property as newsprint and ink for the primary
20 purpose of conveying news (with or without other information)
21 is not a purchase, use or sale of service or of tangible
22 personal property.
23 (b) For purposes of the retailers' occupation tax, the
24 service occupation tax, and the service use tax, "sale at
25 retail" shall be construed to include any transfer of the
26 ownership of or title to tangible personal property to a
27 purchaser, for use or consumption by any other person to whom
28 such purchaser may transfer the tangible personal property
29 without a valuable consideration, and to include any
30 transfer, whether made for or without a valuable
31 consideration, for resale in any form as tangible personal
32 property unless made in compliance with Section 2c of this
33 Act.
34 Sales of tangible personal property, which property, to
-226- LRB9000671KDdvA
1 the extent not first subjected to a use for which it was
2 purchased, as an ingredient or constituent, goes into and
3 forms a part of tangible personal property subsequently the
4 subject of a "sale at retail", are not sales at retail as
5 defined in this Code Act: provided that the property
6 purchased is deemed to be purchased for the purpose of
7 resale, despite first being used, to the extent to which it
8 is resold as an ingredient of an intentionally produced
9 product or byproduct of manufacturing.
10 "Sale at retail" shall be construed to include any
11 Illinois florist's sales transaction in which the purchase
12 order is received in Illinois by a florist and the sale is
13 for use or consumption, but the Illinois florist has a
14 florist in another state deliver the property to the
15 purchaser or the purchaser's donee in such other state.
16 The purchase, employment and transfer of such tangible
17 personal property as newsprint and ink for the primary
18 purpose of conveying news (with or without other information)
19 is not a purchase, use or sale of tangible personal property.
20 A person whose activities are organized and conducted
21 primarily as a not-for-profit service enterprise, and who
22 engages in selling tangible personal property at retail
23 (whether to the public or merely to members and their guests)
24 is engaged in the business of selling tangible personal
25 property at retail with respect to such transactions,
26 excepting only a person organized and operated exclusively
27 for charitable, religious or educational purposes either (1),
28 to the extent of sales by such person to its members,
29 students, patients or inmates of tangible personal property
30 to be used primarily for the purposes of such person, or (2),
31 to the extent of sales by such person of tangible personal
32 property which is not sold or offered for sale by persons
33 organized for profit. The selling of school books and school
34 supplies by schools at retail to students is not "primarily
-227- LRB9000671KDdvA
1 for the purposes of" the school which does such selling. The
2 provisions of this paragraph shall not apply to nor subject
3 to taxation occasional dinners, socials or similar activities
4 of a person organized and operated exclusively for
5 charitable, religious or educational purposes, whether or not
6 such activities are open to the public.
7 A person who is the recipient of a grant or contract
8 under Title VII of the Older Americans Act of 1965 (P.L.
9 92-258) and serves meals to participants in the federal
10 Nutrition Program for the Elderly in return for contributions
11 established in amount by the individual participant pursuant
12 to a schedule of suggested fees as provided for in the
13 federal Act is not engaged in the business of selling
14 tangible personal property at retail with respect to such
15 transactions.
16 The isolated or occasional sale of tangible personal
17 property at retail by a person who does not hold himself out
18 as being engaged (or who does not habitually engage) in
19 selling such tangible personal property at retail, or a sale
20 through a bulk vending machine, does not constitute engaging
21 in a business of selling such tangible personal property at
22 retail within the meaning of this Code; provided that any
23 person who is engaged in a business which is not subject to
24 the taxes imposed by this Code because of involving the sale
25 of or a contract to sell real estate or a construction
26 contract to improve real estate or a construction contract to
27 engineer, install, and maintain an integrated system of
28 products, but who, in the course of conducting such business,
29 transfers tangible personal property to users or consumers in
30 the finished form in which it was purchased, and which does
31 not become real estate or was not engineered and installed,
32 under any provision of a construction contract or real estate
33 sale or real estate sales agreement entered into with some
34 other person arising out of or because of such nontaxable
-228- LRB9000671KDdvA
1 business, is engaged in the business of selling tangible
2 personal property at retail to the extent of the value of the
3 tangible personal property so transferred. If, in such a
4 transaction, a separate charge is made for the tangible
5 personal property so transferred, the value of such property,
6 for the purpose of this Code, shall be the amount so
7 separately charged, but not less than the cost of such
8 property to the transferor; if no separate charge is made,
9 the value of such property, for the purposes of this Code, is
10 the cost to the transferor of such tangible personal
11 property. Construction contracts for the improvement of real
12 estate consisting of engineering, installation, and
13 maintenance of voice, data, video, security, and all
14 telecommunication systems do not constitute engaging in a
15 business of selling tangible personal property at retail
16 within the meaning of this Code if they are sold at one
17 specified contract price.
18 A person who holds himself or herself out as being
19 engaged (or who habitually engages) in selling tangible
20 personal property at retail is a person engaged in the
21 business of selling tangible personal property at retail
22 hereunder with respect to such sales (and not primarily in a
23 service occupation) notwithstanding the fact that such person
24 designs and produces such tangible personal property on
25 special order for the purchaser and in such a way as to
26 render the property of value only to such purchaser, if such
27 tangible personal property so produced on special order
28 serves substantially the same function as stock or standard
29 items of tangible personal property that are sold at retail.
30 Persons who engage in the business of transferring
31 tangible personal property upon the redemption of trading
32 stamps are engaged in the business of selling such property
33 at retail and shall be liable for and shall pay the tax
34 imposed by this Code on the basis of the retail value of the
-229- LRB9000671KDdvA
1 property transferred upon redemption of such stamps.
2 Section 5-95. Purchaser.
3 (a) For purposes of the retailers' occupation tax and
4 the use tax, "purchaser" means anyone who, through a sale at
5 retail, acquires the ownership of or title to tangible
6 personal property for a valuable consideration.
7 (b) For purposes of the service use tax, "purchaser"
8 means anyone who, through a sale of service, acquires the
9 ownership of, or title to, any tangible personal property.
10 Section 5-100. Reseller of motor fuel. For purposes of
11 the retailers' occupation tax, "reseller of motor fuel" means
12 any person engaged in the business of selling or delivering
13 or transferring title of motor fuel to another person other
14 than for use or consumption. No person shall act as a
15 reseller of motor fuel within this State without first being
16 registered as a reseller pursuant to Section 35-50 2c or a
17 retailer pursuant to Section 35-5 2a.
18 Section 5-120. Selling price.
19 (a) For purposes of the retailers' occupation tax and
20 the use tax, "selling price" or the "amount of sale" means
21 the consideration for a sale valued in money whether received
22 in money or otherwise, including cash, credits, property,
23 other than as hereinafter provided, and services, but not
24 including the value of or credit given for traded-in tangible
25 personal property where the item that is traded-in is of like
26 kind and character as that which is being sold, and shall be
27 determined without any deduction on account of the cost of
28 the property sold, the cost of materials used, labor or
29 service cost or any other expense whatsoever, but does not
30 include, for purposes of the use tax only, interest or
31 finance charges which appear as separate items on the bill of
32 sale or sales contract nor, for purposes of the retailers'
33 occupation tax and the use tax, charges that are added to
34 prices by sellers on account of the seller's tax liability
-230- LRB9000671KDdvA
1 under Article 10 this Act, or on account of the seller's duty
2 to collect, from the purchaser, the tax that is imposed by
3 Article 15 the Use Tax Act, or on account of the seller's tax
4 liability under Section 8-11-1 of the Illinois Municipal
5 Code, as heretofore and hereafter amended, or on account of
6 the seller's tax liability under the County Retailers'
7 Occupation Tax Act, or on account of the seller's tax
8 liability under the Home Rule Municipal Soft Drink Retailers'
9 Occupation Tax, or on account of the seller's tax liability
10 under any tax imposed under the "Regional Transportation
11 Authority Act", approved December 12, 1973. Effective
12 December 1, 1985, "selling price" shall include charges that
13 are added to prices by sellers on account of the seller's tax
14 liability under the Cigarette Tax Act, on account of the
15 seller's sellers' duty to collect, from the purchaser, the
16 tax imposed under the Cigarette Use Tax Act, and on account
17 of the seller's duty to collect, from the purchaser, any
18 cigarette tax imposed by a home rule unit.
19 (b) For purposes of the retailers' occupation tax,
20 "selling price" does not include charges that are added to
21 prices by sellers on account of the seller's tax liability
22 under the Home Rule Municipal Soft Drink Retailers'
23 Occupation Tax. "Amount of sale" shall have the same meaning
24 as "selling price".
25 (c) For purposes of the service occupation tax and the
26 service use tax, "selling price" means the consideration for
27 a sale valued in money whether received in money or
28 otherwise, including cash, credits and service, and shall be
29 determined without any deduction on account of the
30 serviceman's cost of the property sold, the cost of materials
31 used, labor or service cost or any other expense whatsoever,
32 but does not include interest or finance charges which appear
33 as separate items on the bill of sale or sales contract nor
34 charges that are added to prices by sellers on account of the
-231- LRB9000671KDdvA
1 seller's duty to collect, from the purchaser, the tax that is
2 imposed by Article 25.
3 Section 5-55. Like kind and character. For purposes of
4 the retailers' occupation tax and the use tax, the phrase
5 "like kind and character" shall be liberally construed
6 (including but not limited to any form of motor vehicle for
7 any form of motor vehicle, or any kind of farm or
8 agricultural implement for any other kind of farm or
9 agricultural implement), while not including a kind of item
10 which, if sold at retail by that retailer, would be exempt
11 from retailers' occupation tax and use tax as an isolated or
12 occasional sale.
13 Section 5-50. Gross receipts. For purposes of the
14 retailers' occupation tax, "gross receipts" from the sales of
15 tangible personal property at retail means the total selling
16 price or the amount of such sales, as hereinbefore defined
17 in this Code. In the case of charge and time sales, the
18 amount thereof shall be included only as and when payments
19 are received by the seller. Receipts or other consideration
20 derived by a seller from the sale, transfer or assignment of
21 accounts receivable to a wholly owned subsidiary will not be
22 deemed payments prior to the time the purchaser makes payment
23 on such accounts.
24 Section 5-35. Department. "Department" means the
25 Department of Revenue.
26 Section 5-65. Person. "Person" means any natural
27 individual, firm, partnership, association, joint stock
28 company, joint venture adventure, public or private
29 corporation, limited liability company, or a receiver,
30 executor, trustee, guardian or other representative appointed
31 by order of any court.
32 The isolated or occasional sale of tangible personal
33 property at retail by a person who does not hold himself out
34 as being engaged (or who does not habitually engage) in
-232- LRB9000671KDdvA
1 selling such tangible personal property at retail, or a sale
2 through a bulk vending machine, does not constitute engaging
3 in a business of selling such tangible personal property at
4 retail within the meaning of this Act; provided that any
5 person who is engaged in a business which is not subject to
6 the tax imposed by this Act because of involving the sale of
7 or a contract to sell real estate or a construction contract
8 to improve real estate or a construction contract to
9 engineer, install, and maintain an integrated system of
10 products, but who, in the course of conducting such business,
11 transfers tangible personal property to users or consumers in
12 the finished form in which it was purchased, and which does
13 not become real estate or was not engineered and installed,
14 under any provision of a construction contract or real estate
15 sale or real estate sales agreement entered into with some
16 other person arising out of or because of such nontaxable
17 business, is engaged in the business of selling tangible
18 personal property at retail to the extent of the value of the
19 tangible personal property so transferred. If, in such a
20 transaction, a separate charge is made for the tangible
21 personal property so transferred, the value of such property,
22 for the purpose of this Act, shall be the amount so
23 separately charged, but not less than the cost of such
24 property to the transferor; if no separate charge is made,
25 the value of such property, for the purposes of this Act, is
26 the cost to the transferor of such tangible personal
27 property. Construction contracts for the improvement of real
28 estate consisting of engineering, installation, and
29 maintenance of voice, data, video, security, and all
30 telecommunication systems do not constitute engaging in a
31 business of selling tangible personal property at retail
32 within the meaning of this Act if they are sold at one
33 specified contract price.
34 A person who holds himself or herself out as being
-233- LRB9000671KDdvA
1 engaged (or who habitually engages) in selling tangible
2 personal property at retail is a person engaged in the
3 business of selling tangible personal property at retail
4 hereunder with respect to such sales (and not primarily in a
5 service occupation) notwithstanding the fact that such person
6 designs and produces such tangible personal property on
7 special order for the purchaser and in such a way as to
8 render the property of value only to such purchaser, if such
9 tangible personal property so produced on special order
10 serves substantially the same function as stock or standard
11 items of tangible personal property that are sold at retail.
12 Persons who engage in the business of transferring
13 tangible personal property upon the redemption of trading
14 stamps are engaged in the business of selling such property
15 at retail and shall be liable for and shall pay the tax
16 imposed by this Act on the basis of the retail value of the
17 property transferred upon redemption of such stamps.
18 Section 5-10. Bulk vending machine. For purposes of the
19 retailers' occupation tax and the use tax, "bulk vending
20 machine" means a nonelectrically operated vending machine,
21 containing unsorted confections, nuts or other merchandise
22 which, when a coin of a denomination not larger than one cent
23 is inserted, are dispensed in equal portions, at random and
24 without selection by the customer.
25 (Source: P.A. 88-420; 88-480; 88-507; 88-670, eff. 12-2-94.)
26 (35 ILCS 120/1a) (from Ch. 120, par. 440a)
27 Section 5-75. Pollution control facilities. Sec. 1a.
28 "Pollution control facilities" means any system, method,
29 construction, device or appliance appurtenant thereto (i)
30 used in this State and acquired as an incident to the
31 purchase of a service from a serviceman, (ii) transferred by
32 a serviceman, or (iii) sold, or used, or intended: (I) for
33 the primary purpose of eliminating, preventing, or reducing
-234- LRB9000671KDdvA
1 air and water pollution as the term "air pollution" or "water
2 pollution" is defined in the "Environmental Protection Act",
3 enacted by the 76th General Assembly, or (II) for the primary
4 purpose of treating, pretreating, modifying or disposing of
5 any potential solid, liquid or gaseous pollutant which if
6 released without such treatment, pretreatment, modification
7 or disposal might be harmful, detrimental or offensive to
8 human, plant or animal life, or to property.
9 Section 30-5. Pollution control facilities. The purchase,
10 employment and transfer of such tangible personal property as
11 pollution control facilities, as defined in Section 5-75, is
12 not (i) a purchase, use or sale of tangible personal property
13 or (ii) a purchase, use, or sale of service, but shall be
14 deemed to be intangible personal property.
15 (Source: P. A. 76-2450.)
16 (35 ILCS 120/1a-1) (from Ch. 120, par. 440a-1)
17 Section 5-60. Low sulfur dioxide emission coal fueled
18 devices. Sec. 1a-1. "Low sulfur dioxide emission coal fueled
19 devices" means any device sold or used or intended for the
20 purpose of burning, combusting or converting locally
21 available coal in a manner which eliminates or significantly
22 reduces the need for additional sulfur dioxide abatement that
23 would otherwise be required under State or federal air
24 emission standards. Such device includes all machinery,
25 equipment, structures and all related apparatus of a coal
26 gasification facility, including coal feeding equipment,
27 designed to convert locally available coal into a low sulfur
28 gaseous fuel and to manage all waste and byproduct streams.
29 Section 30-15. Low sulfur dioxide emission coal fueled
30 devices. The purchase, employment and transfer of such
31 tangible personal property as low sulfur dioxide emission
-235- LRB9000671KDdvA
1 coal fueled devices, as defined in Section 5-60, is not a
2 purchase, use, or sale of tangible personal property.
3 Section 90-45. Low sulfur dioxide emission coal fueled
4 devices; declaratory provisions. The amendatory provisions of
5 Public Act 82-672 concerning low sulfur dioxide emission coal
6 fueled devices, as those provisions appeared in Section 1a-1
7 of the Retailers' Occupation Tax Act, Section 2a-1 of the Use
8 Tax Act, Section 2b of the Service Occupation Tax Act, and
9 Section 2b of the Service Use Tax Act, (now Sections 5-60 and
10 30-5 of this Code) are This amendatory Act of 1981 is not
11 intended to nor do they does it make any change in the
12 meaning of any provision in those Sections this Section but
13 are is intended to remove possible ambiguities, thereby
14 confirming the existing meaning of those this Sections
15 Section in effect prior to October 28, 1981 the effective
16 date of this amendatory Act of 1981.
17 (Source: P.A. 82-672.)
18 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
19 Section 5-105. Retailer.
20 (a) For purposes of the use tax, "retailer" means and
21 includes every person engaged in the business of making sales
22 at retail as defined in Section 5-115.
23 A person who holds himself or herself out as being
24 engaged (or who habitually engages) in selling tangible
25 personal property at retail is a retailer hereunder with
26 respect to such sales (and not primarily in a service
27 occupation) notwithstanding the fact that such person designs
28 and produces such tangible personal property on special order
29 for the purchaser and in such a way as to render the property
30 of value only to such purchaser, if such tangible personal
31 property so produced on special order serves substantially
32 the same function as stock or standard items of tangible
-236- LRB9000671KDdvA
1 personal property that are sold at retail.
2 A person whose activities are organized and conducted
3 primarily as a not-for-profit service enterprise, and who
4 engages in selling tangible personal property at retail
5 (whether to the public or merely to members and their guests)
6 is a retailer with respect to such transactions, excepting
7 only a person organized and operated exclusively for
8 charitable, religious or educational purposes either (1), to
9 the extent of sales by such person to its members, students,
10 patients or inmates of tangible personal property to be used
11 primarily for the purposes of such person, or (2), to the
12 extent of sales by such person of tangible personal property
13 which is not sold or offered for sale by persons organized
14 for profit. The selling of school books and school supplies
15 by schools at retail to students is not "primarily for the
16 purposes of" the school which does such selling. This
17 paragraph does not apply to nor subject to taxation
18 occasional dinners, social or similar activities of a person
19 organized and operated exclusively for charitable, religious
20 or educational purposes, whether or not such activities are
21 open to the public.
22 A person who is the recipient of a grant or contract
23 under Title VII of the Older Americans Act of 1965 (P.L.
24 92-258) and serves meals to participants in the federal
25 Nutrition Program for the Elderly in return for contributions
26 established in amount by the individual participant pursuant
27 to a schedule of suggested fees as provided for in the
28 federal Act is not a retailer under Article 15 with respect
29 to such transactions.
30 Persons who engage in the business of transferring
31 tangible personal property upon the redemption of trading
32 stamps are retailers hereunder when engaged in such business.
33 The isolated or occasional sale of tangible personal
34 property at retail by a person who does not hold himself out
-237- LRB9000671KDdvA
1 as being engaged (or who does not habitually engage) in
2 selling such tangible personal property at retail or a sale
3 through a bulk vending machine does not make such person a
4 retailer hereunder. However, any person who is engaged in a
5 business which is not subject to the tax imposed by Article
6 10 because of involving the sale of or a contract to sell
7 real estate or a construction contract to improve real
8 estate, but who, in the course of conducting such business,
9 transfers tangible personal property to users or consumers in
10 the finished form in which it was purchased, and which does
11 not become real estate, under any provision of a construction
12 contract or real estate sale or real estate sales agreement
13 entered into with some other person arising out of or because
14 of such nontaxable business, is a retailer to the extent of
15 the value of the tangible personal property so transferred.
16 If, in such transaction, a separate charge is made for the
17 tangible personal property so transferred, the value of such
18 property, for the purposes of Article 15, is the amount so
19 separately charged, but not less than the cost of such
20 property to the transferor; if no separate charge is made,
21 the value of such property, for the purposes of Article 15,
22 is the cost to the transferor of such tangible personal
23 property.
24 (b) For purposes of the retailers' occupation tax and
25 the use tax, Sec. 1c. a person who is engaged in the business
26 of leasing or renting motor vehicles to others and who, in
27 connection with such business sells any used motor vehicle to
28 a purchaser for his use and not for the purpose of resale, is
29 a retailer engaged in the business of selling tangible
30 personal property at retail under Articles 10 and 15 this Act
31 to the extent of the value of the vehicle sold. For the
32 purpose of this Section, "motor vehicle" has the meaning
33 prescribed in Section 1-157 of the Illinois Vehicle Code, as
34 now or hereafter amended. (Nothing provided herein shall
-238- LRB9000671KDdvA
1 affect liability incurred under Articles 10 and 15 this Act
2 because of the sale at retail of such motor vehicles to a
3 lessor or use of such motor vehicles by a lessor.)
4 (Source: P.A. 80-598.)
5 (35 ILCS 120/1d) (from Ch. 120, par. 440d)
6 Section 30-20. Designated tangible personal property;
7 enterprise zone; high impact business. Sec. 1d. Subject to
8 the provisions of Section 35-551f, all tangible personal
9 property to be used or consumed within an enterprise zone
10 established pursuant to the "Illinois Enterprise Zone Act",
11 as amended, or subject to the provisions of Section 5.5 of
12 the Illinois Enterprise Zone Act, all tangible personal
13 property to be used or consumed by any high impact business,
14 in the process of the manufacturing or assembly of tangible
15 personal property for wholesale or retail sale or lease or in
16 the process of graphic arts production if used or consumed at
17 a facility which is a Department of Commerce and Community
18 Affairs certified business and located in a county of more
19 than 4,000 persons and less than 45,000 persons is exempt
20 from the taxes tax imposed by this Code Act. This exemption
21 includes repair and replacement parts for machinery and
22 equipment used primarily in the process of manufacturing or
23 assembling tangible personal property or in the process of
24 graphic arts production if used or consumed at a facility
25 which is a Department of Commerce and Community Affairs
26 certified business and located in a county of more than 4,000
27 persons and less than 45,000 persons for wholesale or retail
28 sale, or lease, and equipment, manufacturing or graphic arts
29 fuels, material and supplies for the maintenance, repair or
30 operation of such manufacturing or assembling or graphic arts
31 machinery or equipment.
32 (Source: P.A. 85-1182; 86-1456.)
-239- LRB9000671KDdvA
1 (35 ILCS 120/1e) (from Ch. 120, par. 440e)
2 Section 30-10. Tangible personal property used or
3 consumed in pollution control facilities. For purposes of the
4 taxes imposed by this Code, Sec. 1e. subject to the
5 provisions of Section 35-55 1f, or subject to the provisions
6 of Section 5.5 of the Illinois Enterprise Zone Act, all
7 tangible personal property to be used or consumed in the
8 operation of pollution control facilities, as defined in
9 Section 5-75 1a of this Act, within an enterprise zone
10 established pursuant to the "Illinois Enterprise Zone Act",
11 as amended, shall be exempt from the tax imposed by this Act.
12 (Source: P.A. 85-1182.)
13 (35 ILCS 120/1f) (from Ch. 120, par. 440f)
14 Section 35-55. High impact business. Sec. 1f. Except for
15 high impact businesses, the exemption stated in Sections
16 30-10 1d and 30-20 1e of this Act shall only apply to
17 business enterprises which:
18 (1) either (i) make investments which cause the
19 creation of a minimum of 200 full-time equivalent jobs in
20 Illinois or (ii) make investments which cause the
21 retention of a minimum of 2000 full-time jobs in Illinois
22 or (iii) make investments of a minimum of $40,000,000 and
23 retain at least 90% of the jobs in place on the date on
24 which the exemption is granted and for the duration of
25 the exemption; and
26 (2) are located in an enterprise zone established
27 pursuant to the Illinois Enterprise Zone Act; and
28 (3) are certified by the Department of Commerce and
29 Community Affairs as complying with the requirements
30 specified in clauses (1), (2) and (3).
31 Any business enterprise seeking to avail itself of the
32 exemptions stated in Sections 30-10 1d or 30-20 1e, or both,
33 shall make application to the Department of Commerce and
-240- LRB9000671KDdvA
1 Community Affairs in such form and providing such information
2 as may be prescribed by the Department of Commerce and
3 Community Affairs. However, no business enterprise shall be
4 required, as a condition for certification under clause (3)
5 (4) of this Section, to attest that its decision to invest
6 under clause (1) of this Section and to locate under clause
7 (2) of this Section is predicated upon the availability of
8 the exemptions authorized by Sections 30-10 1d or 30-20 1e.
9 The Department of Commerce and Community Affairs shall
10 determine whether the business enterprise meets the criteria
11 prescribed in this Section. If the Department of Commerce
12 and Community Affairs determines that such business
13 enterprise meets the criteria, it shall issue a certificate
14 of eligibility for exemption to the business enterprise in
15 such form as is prescribed by the Department of Revenue. The
16 Department of Commerce and Community Affairs shall act upon
17 such certification requests within 60 days after receipt of
18 the application, and shall file with the Department of
19 Revenue a copy of each certificate of eligibility for
20 exemption.
21 The Department of Commerce and Community Affairs shall
22 have the power to promulgate rules and regulations to carry
23 out the provisions of this Section including the power to
24 define the amounts and types of eligible investments not
25 specified in this Section which business enterprises must
26 make in order to receive the exemptions stated in Sections
27 30-10 1d and 30-20 1e of this Code Act; and to require that
28 any business enterprise that is granted a tax exemption repay
29 the exempted tax if the business enterprise fails to comply
30 with the terms and conditions of the certification.
31 Such certificate of eligibility for exemption shall be
32 presented by the business enterprise to its supplier when
33 making the initial purchase of tangible personal property for
34 which an exemption is granted by Section 30-10 1d or Section
-241- LRB9000671KDdvA
1 30-20 1e, or both, together with a certification by the
2 business enterprise that such tangible personal property is
3 exempt from taxation under Section 30-10 1d or Section 30-20
4 1e and by indicating the exempt status of each subsequent
5 purchase on the face of the purchase order.
6 The Department of Commerce and Community Affairs shall
7 determine the period during which such exemption from the
8 taxes imposed under this Code Act is in effect which shall
9 not exceed 20 years.
10 (Source: P.A. 86-44; 86-1456.)
11 (35 ILCS 120/1g) (from Ch. 120, par. 440g)
12 Section 35-60. Exemption identification number. Sec. 1g.
13 On or before December 31, 1986, except as hereinafter
14 provided, each entity otherwise eligible under Section 30-170
15 exemption (11) of Section 2-5 of this Act shall make
16 application to the Department for an exemption identification
17 number. In the case of a corporation, society, association,
18 foundation, or institution organized and operated exclusively
19 for charitable purposes and that has more than 50 subsidiary
20 organizations in Illinois, the Department, in its sole
21 discretion, may issue one exemption identification number to
22 be used by the parent organization and each subsidiary
23 organization.
24 Each exemption identification number or renewal number
25 shall be valid for 5 years after the first day of the month
26 following the month of issuance. Not less than 3 months
27 before the expiration date, an application for renewal shall
28 be filed.
29 Each application for an exemption identification number
30 or a renewal number shall contain information and be
31 accompanied by documentation as shall be requested by the
32 Department.
33 (Source: P.A. 86-1475.)
-242- LRB9000671KDdvA
1 (35 ILCS 120/1h) (from Ch. 120, par. 440h)
2 Section 35-65. Exemption identification number; list.
3 Sec. 1h. Upon request made on or after July 1, 1987, the
4 Department shall furnish to any county or municipality a list
5 containing the name of each corporation, society,
6 association, foundation or institution organized and operated
7 exclusively for charitable, religious or educational
8 purposes, and each not-for-profit corporation, society,
9 association, foundation, institution or organization which
10 has no compensated officers or employees and which is
11 organized and operated primarily for the recreation of
12 persons 55 years of age or older, which had a valid exemption
13 identification number on the first day of January or July, as
14 the case may be, proceeding the date on which such request is
15 received and which is located within the corporate limits of
16 such municipality or the unincorporated territory of such
17 county, except that the list need not include subsidiary
18 organizations using an exemption identification number issued
19 to its parent organization as provided by Section 30-201d of
20 this Act.
21 (Source: P.A. 85-293.)
22 (35 ILCS 120/1i) (from Ch. 120, par. 440i)
23 Section 35-85. High impact service facility. Sec. 1i.
24 High impact service facility means a facility used primarily
25 for the sorting, handling and redistribution of single item
26 non-fungible parcels received from agents or employees of the
27 handler or shipper for processing at a common location and
28 redistribution to other employees or agents for delivery to
29 an ultimate destination on an item-by-item basis, and which:
30 (1) will make an investment by a business enterprise of
31 $150,000,000 dollars or more; (2) will cause the creation of
32 at least 1,000 jobs in an enterprise zone established
33 pursuant to the Illinois Enterprise Zone Act; and (3) is
-243- LRB9000671KDdvA
1 certified by the Department of Commerce and Community Affairs
2 as contractually obligated to meet the requirements specified
3 in divisions (1) and (2) of this paragraph within the time
4 period as specified by the certification. Any business
5 enterprise applying for the exemption stated in this Section
6 shall make application to the Department of Commerce and
7 Community Affairs in such form and providing such information
8 as may be prescribed by the Department of Commerce and
9 Community Affairs.
10 The Department of Commerce and Community Affairs shall
11 determine whether the facility business enterprise meets the
12 criteria prescribed in this Section. If the Department of
13 Commerce and Community Affairs determines that such business
14 enterprise meets the criteria, it shall issue a certificate
15 of eligibility for exemption to the business enterprise in
16 such form as is prescribed by the Department of Revenue. The
17 Department of Commerce and Community Affairs shall act upon
18 such certification requests within 60 days after receipt of
19 the application, and shall file with the Department of
20 Revenue a copy of each certificate of eligibility for
21 exemption.
22 The Department of Commerce and Community Affairs shall
23 have the power to promulgate rules and regulations to carry
24 out the provisions of this Section and to require that any
25 business enterprise that is granted a tax exemption repay the
26 exempted tax if the business enterprise fails to comply with
27 the terms and conditions of the certification.
28 The certificate of eligibility for exemption shall be
29 presented by the business enterprise to its supplier when
30 making the initial purchase of machinery and equipment for
31 which an exemption is granted by Section 30-25 1j of this
32 Code Act, together with a certification by the business
33 enterprise that such machinery and equipment is exempt from
34 taxation under Section 30-25 1j of this Code Act and by
-244- LRB9000671KDdvA
1 indicating the exempt status of each subsequent purchase on
2 the face of the purchase order.
3 The Department of Commerce and Community Affairs shall
4 determine the period during which such exemption from the
5 taxes imposed under this Code Act will remain in effect.
6 (Source: P.A. 85-1409.)
7 (35 ILCS 120/1j) (from Ch. 120, par. 440j)
8 Section 30-25. Sec. 1j. Exemption - Machinery or
9 Equipment used in the operation of high impact service
10 facilities. Subject to the provisions of Section 35-85 1i of
11 this Code Act, machinery or equipment used in the operation
12 of a high impact service facility, as defined in Section
13 35-85 1i of this Code Act, located within an enterprise zone
14 established pursuant to the Illinois Enterprise Zone Act
15 shall be exempt from the taxes tax imposed by this Code Act.
16 Machinery and equipment, new and replacement, shall include,
17 but not be limited to: (i) motor driven heavy equipment not
18 considered rolling stock which is used for the purpose of
19 transporting parcels, machinery, or equipment, or trailers
20 used for the shipment of parcels, and equipment used to
21 maintain and provide in-house services, within the confines
22 of the facility, and (ii) automated machinery and equipment
23 used for the purposes of transporting parcels within the
24 facility, along with all components, parts, pieces, and
25 computer software or hardware contained in the electronic
26 control systems related thereto. The Department of Revenue
27 shall promulgate such rules and regulations as necessary to
28 further define machinery and equipment eligible for exemption
29 in a high impact service facility.
30 (Source: P.A. 85-1409.)
31 (35 ILCS 120/1k) (from Ch. 120, par. 440k)
32 Section 35-80. Aircraft maintenance facility. Sec. 1k.
-245- LRB9000671KDdvA
1 Aircraft maintenance facility means a facility operated by an
2 interstate carrier for hire that is used primarily for the
3 maintenance, rebuilding or repair of aircraft, aircraft parts
4 and auxiliary equipment owned or leased by that carrier and
5 used by that carrier as rolling stock moving in interstate
6 commerce, and which: (1) will make an investment by the
7 interstate carrier for hire of $400,000,000 or more in an
8 enterprise zone; (2) will cause the creation of at least
9 5,000 full-time jobs in that enterprise zone; (3) is located
10 in a county with population not less than 150,000 and not
11 more than 200,000 and that contains 3 enterprise zones as of
12 December 31, 1990; (4) enters into a legally binding
13 agreement with the Department of Commerce and Community
14 Affairs to comply with clauses (1) and (2) of this paragraph
15 within a time period specified in the rules and regulations
16 promulgated pursuant to this Section; and (5) is certified by
17 the Department of Commerce and Community Affairs to be in
18 compliance with clauses (1), (2), (3) and (4) of this
19 Section. Any aircraft maintenance facility applying for the
20 exemption stated in this Section shall make application to
21 the Department of Commerce and Community Affairs in such form
22 and providing such information as may be prescribed by the
23 Department of Commerce and Community Affairs.
24 The Department of Commerce and Community Affairs shall
25 determine whether the facility meets the criteria prescribed
26 in this Section. If the Department of Commerce and Community
27 Affairs determines that the facility meets the criteria, it
28 shall issue a certificate of eligibility for exemption in the
29 form prescribed by the Department of Revenue to the business
30 enterprise operating the facility. The Department of
31 Commerce and Community Affairs shall act upon certification
32 request within 60 days after receipt of application, and
33 shall file with the Department of Revenue a copy of each
34 certificate of eligibility for exemption.
-246- LRB9000671KDdvA
1 The Department of Commerce and Community Affairs shall
2 promulgate rules and regulations to carry out the provisions
3 of this Section, and to require that any business enterprise
4 that is granted a tax exemption pay the exempted tax to the
5 Department of Revenue if the business enterprise fails to
6 comply with the terms and conditions of the certification,
7 and pay all penalties and interest on that exempted tax as
8 determined by the Department of Revenue.
9 The certificate of eligibility for exemption shall be
10 presented by the business enterprise to its supplier when
11 making the initial purchase of machinery and equipment for
12 which an exemption is granted by Section 30-35 1m or Section
13 30-40 1n of this Code Act, or both, together with a
14 certification by the business enterprise that the machinery
15 and equipment is exempt from taxation under Section 30-35 1m
16 or 30-40 1n of this Code Act. The exempt status, if any, of
17 each subsequent purchase shall be indicated on the face of
18 the purchase order.
19 (Source: P.A. 86-1490.)
20 (35 ILCS 120/1m) (from Ch. 120, par. 440m)
21 Section 30-35. Machinery and equipment used in aircraft
22 maintenance facility. Sec. 1m. Subject to the provisions of
23 Section 35-80 1k of this Code Act, machinery and equipment
24 used in the operation of an aircraft maintenance facility as
25 defined in Section 35-80 1k, located within an enterprise
26 zone shall be exempt from the taxes tax imposed by this Code
27 Act. The machinery and equipment exempted by this Section is
28 limited to machinery and equipment used primarily to
29 maintain, rebuild or repair aircraft used as rolling stock
30 moving in interstate commerce for hire by the operator of the
31 facility. The Department of Revenue shall promulgate any
32 rules and regulations necessary to further define machinery
33 and equipment eligible for exemption in an aircraft
-247- LRB9000671KDdvA
1 maintenance facility.
2 (Source: P.A. 86-1490.)
3 (35 ILCS 120/1n) (from Ch. 120, par. 440n)
4 Section 30-40. Tangible personal property used or
5 consumed in aircraft maintenance facility. Sec. 1n. Subject
6 to the provisions of Section 35-80 1k, all tangible personal
7 property to be used or consumed, within an enterprise zone
8 established pursuant to the Illinois Enterprise Zone Act, by
9 any aircraft maintenance facility, directly in the process of
10 maintaining, rebuilding or repairing aircraft is exempt from
11 the taxes tax imposed by this Code Act. The exemption
12 includes repair and replacement parts for machinery and
13 equipment used primarily in the process of maintaining,
14 rebuilding or repairing aircraft, and also includes
15 equipment, fuels, material and supplies for the maintenance,
16 repair or operation of such machinery or equipment.
17 (Source: P.A. 86-1490.)
18 (35 ILCS 120/2) (from Ch. 120, par. 441)
19 Section 10-5. Sec. 2. Tax imposed. A tax is imposed upon
20 persons engaged in the business of selling at retail tangible
21 personal property, including computer software, and including
22 photographs, negatives, and positives that are the product of
23 photoprocessing, but not including products of
24 photoprocessing produced for use in motion pictures for
25 public commercial exhibition. The tax imposed in this Article
26 shall be known as the "retailers' occupation tax".
27 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
28 86-928; 86-953; 86-1394; 86-1475.)
29 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
30 Section 30-60. Farm chemicals. For purposes of the
31 retailers' occupation tax and the use tax, Sec.
-248- LRB9000671KDdvA
1 2-5. Exemptions. Gross receipts from proceeds from the sale
2 of the following tangible personal property are exempt from
3 the tax imposed by this Act: (1) farm chemicals are
4 exempt.
5 Section 30-65. Farm machinery and equipment. For
6 purposes of the taxes imposed by this Code, (2) farm
7 machinery and equipment, both new and used, including that
8 manufactured on special order, certified by the purchaser to
9 be used primarily for production agriculture or State or
10 federal agricultural programs, including individual
11 replacement parts for the machinery and equipment, and
12 including machinery and equipment purchased for lease, but
13 excluding motor vehicles required to be registered under the
14 Illinois Vehicle Code is exempt.
15 Section 30-70. Distillation machinery and equipment.
16 (a) For purposes of the retailers' occupation tax and
17 the use tax, (3) distillation machinery and equipment, sold
18 as a unit or kit, assembled or installed by the retailer,
19 certified by the user to be used only for the production of
20 ethyl alcohol that will be used for consumption as motor fuel
21 or as a component of motor fuel for the personal use of the
22 user, and not subject to sale or resale is exempt.
23 (b) For purposes of the service occupation tax and the
24 service use tax, "sale of service" shall not include a sale
25 or transfer of distillation machinery and equipment, sold as
26 a unit or kit and assembled or installed by the retailer,
27 which machinery and equipment is certified by the user to be
28 used only for the production of ethyl alcohol that will be
29 used for consumption as motor fuel or as a component of motor
30 fuel for the personal use of such user and not subject to
31 sale or resale.
-249- LRB9000671KDdvA
1 Section 30-90. Graphic arts machinery and equipment. For
2 purposes of the taxes imposed by this Code, (4) graphic arts
3 machinery and equipment, including repair and replacement
4 parts, both new and used, and including that manufactured on
5 special order or purchased for lease, certified by the
6 purchaser to be used primarily for graphic arts production is
7 exempt.
8 Section 30-105. Motor vehicle used for renting. For purposes
9 of the retailers' occupation tax and the use tax, (5) a
10 motor vehicle of the first division, a motor vehicle of the
11 second division that is a self-contained motor vehicle
12 designed or permanently converted to provide living quarters
13 for recreational, camping, or travel use, with direct walk
14 through access to the living quarters from the driver's seat,
15 or a motor vehicle of the second division that is of the van
16 configuration designed for the transportation of not less
17 than 7 nor more than 16 passengers, as defined in Section
18 1-146 of the Illinois Vehicle Code, that is used for
19 automobile renting, as defined in the Automobile Renting
20 Occupation and Use Tax Act is exempt.
21 Section 30-155. Personal property sold by students. For
22 purposes of the taxes imposed by this Code, (6) personal
23 property sold by or purchased from a teacher-sponsored
24 student organization affiliated with an elementary or
25 secondary school located in Illinois is exempt.
26 Section 30-110. Passenger car subject to replacement
27 vehicle tax. For purposes of the retailers' occupation tax
28 and the use tax, (7) proceeds of that portion of the selling
29 price of a passenger car the sale of which is subject to the
30 Replacement Vehicle Tax are exempt.
-250- LRB9000671KDdvA
1 Section 30-175. County fair association.
2 (a) For purposes of the retailers' occupation tax, (8)
3 personal property sold to an Illinois county fair association
4 for use in conducting, operating, or promoting the county
5 fair is exempt.
6 (b) For purposes of the use tax, the service occupation
7 tax, and the service use tax, personal property purchased by
8 a not-for-profit Illinois county fair association for use in
9 conducting, operating, or promoting the county fair is
10 exempt.
11 Section 30-160. Personal property sold to a
12 not-for-profit music or dramatic arts organization. For
13 purposes of the taxes imposed by this Code, (9) personal
14 property sold to or purchased by a not-for-profit music or
15 dramatic arts organization that establishes, by proof
16 required by the Department by rule, that it has received an
17 exemption under Section 501(c) (3) of the Internal Revenue
18 Code and that is organized and operated for the presentation
19 of live public performances of musical or theatrical works on
20 a regular basis is exempt.
21 Section 30-165. Personal property sold for the benefit of
22 persons 65 years of age or older. For purposes of the taxes
23 imposed by this Code, (10) personal property sold by or
24 purchased from a corporation, society, association,
25 foundation, institution, or organization, other than a
26 limited liability company, that is organized and operated as
27 a not-for-profit service enterprise for the benefit of
28 persons 65 years of age or older if the personal property was
29 not purchased by the enterprise for the purpose of resale by
30 the enterprise is exempt.
31 Section 30-170. Personal property sold to charitable,
-251- LRB9000671KDdvA
1 religious, or educational organizations.
2 (a) For purposes of the retailers' occupation tax and
3 the use tax, (11) personal property sold to or purchased by a
4 governmental body, to a corporation, society, association,
5 foundation, or institution organized and operated exclusively
6 for charitable, religious, or educational purposes, or to a
7 not-for-profit corporation, society, association, foundation,
8 institution, or organization that has no compensated officers
9 or employees and that is organized and operated primarily for
10 the recreation of persons 55 years of age or older is exempt.
11 A limited liability company may qualify for the exemption
12 under this subsection paragraph only if the limited liability
13 company is organized and operated exclusively for educational
14 purposes. On and after July 1, 1987, however, no entity
15 otherwise eligible for this exemption shall make tax-free
16 purchases unless it has an active exemption identification
17 number issued by the Department in accordance with Section
18 35-60 of this Code.
19 (b) For purposes of the service occupation tax and the
20 service use tax, "sale of service" shall not include, except
21 as hereinafter provided, a sale or transfer of tangible
22 personal property as an incident to the rendering of service
23 for or by any governmental body or for or by any corporation,
24 society, association, foundation or institution organized and
25 operated exclusively for charitable, religious or educational
26 purposes or any not-for-profit corporation, society,
27 association, foundation, institution or organization which
28 has no compensated officers or employees and which is
29 organized and operated primarily for the recreation of
30 persons 55 years of age or older. A limited liability
31 company may qualify for the exemption under this subsection
32 only if the limited liability company is organized and
33 operated exclusively for educational purposes. On and after
34 July 1, 1987, however, no entity otherwise eligible for the
-252- LRB9000671KDdvA
1 exemption under this subsection shall make tax free purchases
2 unless it has an active exemption identification number
3 issued by the Department.
4 Section 30-140. Rolling stock; personal property.
5 (a) For purposes of the retailers' occupation tax and
6 the use tax, (12) personal property sold to an interstate
7 carrier carriers for hire for use as rolling stock moving in
8 interstate commerce or to lessors under leases of one year or
9 longer executed or in effect at the time of purchase by
10 interstate carriers for hire for use as rolling stock moving
11 in interstate commerce as long as so used by interstate
12 carriers for hire and equipment operated by a
13 telecommunications provider, licensed as a common carrier by
14 the Federal Communications Commission, which is permanently
15 installed in or affixed to aircraft moving in interstate
16 commerce is exempt.
17 (b) For purposes of the service occupation tax and the
18 service use tax, "sale of service" shall not include a sale
19 or transfer of tangible personal property as an incident to
20 the rendering of service for interstate carriers for hire for
21 use as rolling stock moving in interstate commerce or lessors
22 under leases of one year or longer, executed or in effect at
23 the time of purchase, to interstate carriers for hire for use
24 as rolling stock moving in interstate commerce as long as so
25 used by such interstate carriers for hire, and equipment
26 operated by a telecommunications provider, licensed as a
27 common carrier by the Federal Communications Commission,
28 which is permanently installed in or affixed to aircraft
29 moving in interstate commerce.
30 Section 30-145. Rolling stock; proceeds from sales.
31 (a) For purposes of the retailers' occupation tax and
32 the use tax, (13) proceeds from sales to owners, lessors, or
-253- LRB9000671KDdvA
1 shippers of tangible personal property that is utilized by
2 interstate carriers for hire for use as rolling stock moving
3 in interstate commerce as long as so used by the interstate
4 carriers for hire, and equipment operated by a
5 telecommunications provider, licensed as a common carrier by
6 the Federal Communications Commission, which is permanently
7 installed in or affixed to aircraft moving in interstate
8 commerce are exempt.
9 (b) For purposes of the service occupation tax and the
10 service use tax, "sale of service" shall not include a sale
11 or transfer of tangible personal property as an incident to
12 the rendering of service for owners, lessors or shippers of
13 tangible personal property which is utilized by interstate
14 carriers for hire for use as rolling stock moving in
15 interstate commerce as long as so used by such interstate
16 carriers for hire, and equipment operated by a
17 telecommunications provider, licensed as a common carrier by
18 the Federal Communications Commission, which is permanently
19 installed in or affixed to aircraft moving in interstate
20 commerce.
21 Section 30-95. Manufacturing and assembling machinery and
22 equipment.
23 (a) For purposes of the retailers' occupation tax and
24 the use tax, (14) machinery and equipment that will be used
25 by the purchaser, or a lessee of the purchaser, primarily in
26 the process of manufacturing or assembling tangible personal
27 property for wholesale or retail sale or lease, whether the
28 sale or lease is made directly by the manufacturer or by some
29 other person, whether the materials used in the process are
30 owned by the manufacturer or some other person, or whether
31 the sale or lease is made apart from or as an incident to the
32 seller's engaging in the service occupation of producing
33 machines, tools, dies, jigs, patterns, gauges, or other
-254- LRB9000671KDdvA
1 similar items of no commercial value on special order for a
2 particular purchaser is exempt.
3 (b) For purposes of the service occupation tax and
4 service use tax, "sale of service" shall not include a sale
5 or transfer of machinery and equipment used primarily in the
6 process of the manufacturing or assembling, either in an
7 existing, an expanded or a new manufacturing facility, of
8 tangible personal property for wholesale or retail sale or
9 lease, whether such sale or lease is made directly by the
10 manufacturer or by some other person, whether the materials
11 used in the process are owned by the manufacturer or some
12 other person, or whether such sale or lease is made apart
13 from or as an incident to the seller's engaging in a service
14 occupation and the applicable tax is a service use tax or
15 service occupation tax, rather than use tax or retailers'
16 occupation tax.
17 Section 30-200. Mandatory service charge. For purposes of
18 the taxes imposed by this Code, (15) proceeds of mandatory
19 service charges separately stated on customers' bills for the
20 purchase and consumption of food and beverages, to the extent
21 that the proceeds of the service charge are in fact turned
22 over as tips or as a substitute for tips to the employees who
23 participate directly in preparing, serving, hosting or
24 cleaning up the food or beverage function with respect to
25 which the service charge is imposed are exempt.
26 Section 30-120. Petroleum products. For purposes of the
27 retailers' occupation tax, (16) petroleum products sold to a
28 purchaser if the seller is prohibited by federal law from
29 charging tax to the purchaser are exempt.
30 Section 30-135. Tangible personal property sold to rail
31 common carrier.
-255- LRB9000671KDdvA
1 (a) For purposes of the retailers' occupation tax and
2 the use tax, (17) tangible personal property sold to a common
3 carrier by rail that receives the physical possession of the
4 property in Illinois and that transports the property, or
5 shares with another common carrier in the transportation of
6 the property, out of Illinois on a standard uniform bill of
7 lading showing the seller of the property as the shipper or
8 consignor of the property to a destination outside Illinois,
9 for use outside Illinois is exempt.
10 (b) For purposes of the service occupation tax and the
11 service use tax, "sale of service" shall not include the
12 repairing, reconditioning or remodeling, for a common carrier
13 by rail, of tangible personal property which belongs to such
14 carrier for hire, and as to which such carrier receives the
15 physical possession of the repaired, reconditioned or
16 remodeled item of tangible personal property in Illinois, and
17 which such carrier transports, or shares with another common
18 carrier in the transportation of such property, out of
19 Illinois on a standard uniform bill of lading showing the
20 person who repaired, reconditioned or remodeled the property
21 as the shipper or consignor of such property to a destination
22 outside Illinois, for use outside Illinois.
23 (c) For purposes of the service occupation tax and the
24 service use tax, "sale of service" shall not include a sale
25 or transfer of tangible personal property which is produced
26 by the seller thereof on special order in such a way as to
27 have made the applicable tax the service occupation tax or
28 the service use tax, rather than the retailers' occupation
29 tax or the use tax, for an interstate carrier by rail which
30 receives the physical possession of such property in
31 Illinois, and which transports such property, or shares with
32 another common carrier in the transportation of such
33 property, out of Illinois on a standard uniform bill of
34 lading showing the seller of the property as the shipper or
-256- LRB9000671KDdvA
1 consignor of such property to a destination outside Illinois,
2 for use outside Illinois.
3 Section 30-205. Legal tender. For purposes of the taxes
4 imposed by this Code, (18) legal tender, currency,
5 medallions, or gold or silver coinage issued by the State of
6 Illinois, the government of the United States of America, or
7 the government of any foreign country, and bullion are
8 exempt.
9 Section 30-75. Oilfield equipment. For purposes of the
10 taxes imposed by this Code, (19) oil field exploration,
11 drilling, and production equipment, including (i) rigs and
12 parts of rigs, rotary rigs, cable tool rigs, and workover
13 rigs, (ii) pipe and tubular goods, including casing and drill
14 strings, (iii) pumps and pump-jack units, (iv) storage tanks
15 and flow lines, (v) any individual replacement part for oil
16 field exploration, drilling, and production equipment, and
17 (vi) machinery and equipment purchased for lease; but
18 excluding motor vehicles required to be registered under the
19 Illinois Vehicle Code is exempt.
20 Section 30-85. Photoprocessing machinery and equipment.
21 For purposes of the taxes imposed by this Code, (20)
22 photoprocessing machinery and equipment, including repair and
23 replacement parts, both new and used, including that
24 manufactured on special order, certified by the purchaser to
25 be used primarily for photoprocessing, and including
26 photoprocessing machinery and equipment purchased for lease
27 is exempt.
28 Section 30-80. Coal exploration equipment. For purposes
29 of the taxes imposed by this Code, (21) coal exploration,
30 mining, offhighway hauling, processing, maintenance, and
-257- LRB9000671KDdvA
1 reclamation equipment, including replacement parts and
2 equipment, and including equipment purchased for lease, but
3 excluding motor vehicles required to be registered under the
4 Illinois Vehicle Code is exempt.
5 Section 30-125. Petroleum products sold to air carrier.
6 For purposes of the taxes imposed by this Code, (22) fuel and
7 petroleum products sold to or used by an air common carrier,
8 certified by the carrier to be used for consumption,
9 shipment, or storage in the conduct of its business as an air
10 common carrier, for a flight destined for or returning from a
11 location or locations outside the United States without
12 regard to previous or subsequent domestic stopovers are
13 exempt.
14 Section 30-210. Florist.
15 (a) For purposes of the retailers' occupation tax, (23)
16 a transaction in which the purchase order is received by a
17 florist who is located outside Illinois, but who has a
18 florist located in Illinois deliver the property to the
19 purchaser or the purchaser's donee in Illinois is exempt.
20 (b) For purposes of the use tax, personal property
21 delivered to a purchaser or purchaser's donee inside Illinois
22 when the purchase order for that personal property was
23 received by a florist located outside Illinois who has a
24 florist located inside Illinois deliver the personal property
25 is exempt.
26 Section 30-130. Fuel consumed by ships. For purposes of
27 the retailers' occupation tax, (24) fuel consumed or used in
28 the operation of ships, barges, or vessels that are used
29 primarily in or for the transportation of property or the
30 conveyance of persons for hire on rivers bordering on this
31 State if the fuel is delivered by the seller to the
-258- LRB9000671KDdvA
1 purchaser's barge, ship, or vessel while it is afloat upon
2 that bordering river is exempt.
3 Section 30-115. Motor vehicle sold to a non-resident. For
4 purposes of the retailers' occupation tax and the use tax,
5 (25) a motor vehicle sold in this State to a nonresident even
6 though the motor vehicle is delivered to the nonresident in
7 this State, if the motor vehicle is not to be titled in this
8 State, and if a driveaway decal permit is issued to the motor
9 vehicle as provided in Section 3-603 of the Illinois Vehicle
10 Code or if the nonresident purchaser has vehicle registration
11 plates to transfer to the motor vehicle upon returning to his
12 or her home state is exempt. The issuance of the driveaway
13 decal permit or having the out-of-state registration plates
14 to be transferred is prima facie evidence that the motor
15 vehicle will not be titled in this State.
16 Section 30-55. Semen. For purposes of the taxes imposed
17 by this Code, (26) semen used for artificial insemination of
18 livestock for direct agricultural production is exempt.
19 Section 30-50. Horses. For purposes of the taxes imposed
20 by this Code, (27) horses, or interests in horses, registered
21 with and meeting the requirements of any of the Arabian Horse
22 Club Registry of America, Appaloosa Horse Club, American
23 Quarter Horse Association, United States Trotting
24 Association, or Jockey Club, as appropriate, used for
25 purposes of breeding or racing for prizes are exempt.
26 Section 30-185. Computers for hospitals.
27 (a) For purposes of the taxes imposed by this Code, (28)
28 computers and communications equipment utilized for any
29 hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
-259- LRB9000671KDdvA
1 who leases the equipment, under a lease of one year or longer
2 executed or in effect, for purposes of the retailers'
3 occupation tax and the service occupation tax, at the time of
4 the purchase, or, for purposes of the use tax and the service
5 use tax, at the time the lessor would otherwise be subject to
6 the tax imposed by Article 15 or Article 25, to a hospital
7 that has been issued an active tax exemption identification
8 number by the Department under Section 35-60 are exempt 1g of
9 this Act.
10 (b) For purposes of the use tax and the service use tax,
11 if the equipment is leased in a manner that does not qualify
12 for this exemption or is used in any other non-exempt manner,
13 the lessor shall be liable for the tax imposed under Article
14 15 or Article 25, as the case may be, based on the fair
15 market value of the property at the time the non-qualifying
16 use occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by Article 15 or Article 25, as
19 the case may be, if the tax has not been paid by the lessor.
20 If a lessor improperly collects any such amount from the
21 lessee, the lessee shall have a legal right to claim a refund
22 of that amount from the lessor. If, however, that amount is
23 not refunded to the lessee for any reason, the lessor is
24 liable to pay that amount to the Department.
25 Section 30-190. Personal property sold to lessor for
26 lease to governmental body.
27 (a) For purposes of the taxes imposed by this Code, (29)
28 personal property sold to a lessor who leases the property,
29 under a lease of one year or longer executed or in effect,
30 for purposes of the retailers' occupation tax and the service
31 occupation tax, at the time of the purchase, or, for purposes
32 of the use tax and the service use tax, at the time the
33 lessor would otherwise be subject to the taxes imposed by
-260- LRB9000671KDdvA
1 Article 15 or Article 25, to a governmental body that has
2 been issued an active tax exemption identification number by
3 the Department under Section 35-60 is exempt 1g of this Act.
4 (b) For purposes of the use tax and the service use tax,
5 if the property is leased in a manner that does not qualify
6 for this exemption or used in any other non-exempt manner,
7 the lessor shall be liable for the tax imposed under Article
8 15 or Article 25, as the case may be, based on the fair
9 market value of the property at the time the non-qualifying
10 use occurs. No lessor shall collect or attempt to collect an
11 amount (however designated) that purports to reimburse that
12 lessor for the tax imposed by Article 15 or Article 25, as
13 the case may be, if the tax has not been paid by the lessor.
14 If a lessor improperly collects any such amount from the
15 lessee, the lessee shall have a legal right to claim a refund
16 of that amount from the lessor. If, however, that amount is
17 not refunded to the lessee for any reason, the lessor is
18 liable to pay that amount to the Department.
19 Section 30-180. Personal property donated for disaster
20 relief. For purposes of the taxes imposed by this Code, (30)
21 beginning with taxable years ending on or after December 31,
22 1995 and ending with taxable years ending on or before
23 December 31, 2004, personal property that is donated for
24 disaster relief to be used in a State or federally declared
25 disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department, in accordance with
30 Section 35-60, that assists victims of the disaster who
31 reside within the declared disaster area is exempt.
32 Section 30-45. Personal property used in infrastructure
-261- LRB9000671KDdvA
1 repairs. For purposes of the taxes imposed by this Code, (31)
2 beginning with taxable years ending on or after December 31,
3 1995 and ending with taxable years ending on or before
4 December 31, 2004, personal property that is used in the
5 performance of infrastructure repairs in this State,
6 including but not limited to municipal roads and streets,
7 access roads, bridges, sidewalks, waste disposal systems,
8 water and sewer line extensions, water distribution and
9 purification facilities, storm water drainage and retention
10 facilities, and sewage treatment facilities, resulting from a
11 State or federally declared disaster in Illinois or bordering
12 Illinois when such repairs are initiated on facilities
13 located in the declared disaster area within 6 months after
14 the disaster is exempt.
15 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
16 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
17 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
18 eff. 8-9-96; revised 8-21-96.)
19 (35 ILCS 120/2-5.5)
20 Section 30-195. Sec. 2-5.5. Food and drugs sold by
21 not-for-profit organizations; exemption.
22 (a) The Department shall not collect the 1% tax imposed
23 on food for human consumption that is to be consumed off the
24 premises where it is sold (other than alcoholic beverages,
25 soft drinks, and food that has been prepared for immediate
26 consumption) and prescription and nonprescription medicines,
27 drugs, medical appliances, and insulin, urine testing
28 materials, syringes, and needles used by diabetics, for human
29 use from any not-for-profit organization, that sells food in
30 a food distribution program at a price below the retail cost
31 of the food to purchasers who, as a condition of
32 participation in the program, are required to perform
33 community service, located in a county or municipality that
-262- LRB9000671KDdvA
1 notifies the Department, in writing, that the county or
2 municipality does not want the tax to be collected from any
3 of such organizations located in the county or municipality.
4 (b) For purposes of the service occupation tax, food for
5 human consumption that is to be consumed off the premises
6 where it is sold (other than alcoholic beverages, soft drinks
7 and food that has been prepared for immediate consumption)
8 and prescription and nonprescription medicines, drugs,
9 medical appliances, and insulin, urine testing materials,
10 syringes, and needles used by diabetics, for human use, when
11 purchased for use by a person receiving medical assistance
12 under Article 5 of the Illinois Public Aid Code who resides
13 in a licensed long-term care facility, as defined in the
14 Nursing Home Care Act is exempt.
15 (Source: P.A. 88-374.)
16 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
17 Section 10-15. Sec. 2-10. Rate of tax. Unless otherwise
18 provided in this Section, the tax imposed by this Article Act
19 is at the rate of 6.25% of gross receipts from sales of
20 tangible personal property made in the course of business.
21 With respect to gasohol, as defined in Section 5-40 the
22 Use Tax Act, the tax imposed by this Article Act applies to
23 70% of the proceeds of sales made on or after January 1,
24 1990, and before July 1, 1999, and to 100% of the proceeds of
25 sales made thereafter, except that from July 1, 1997 to July
26 1, 1999, the rate shall be 85% for gasohol sold in this State
27 during the 12 months beginning July 1 following any calendar
28 year for which the Department has determined that the
29 percentages in Section 10 of the Gasohol Fuels Tax Abatement
30 Act have not been met.
31 With respect to food for human consumption that is to be
32 consumed off the premises where it is sold (other than
33 alcoholic beverages, soft drinks, and food that has been
-263- LRB9000671KDdvA
1 prepared for immediate consumption) and prescription and
2 nonprescription medicines, drugs, medical appliances,
3 modifications to a motor vehicle for the purpose of rendering
4 it usable by a disabled person, and insulin, urine testing
5 materials, syringes, and needles used by diabetics, for human
6 use, the tax is imposed at the rate of 1%. For the purposes
7 of this Section, the term "soft drinks" means any complete,
8 finished, ready-to-use, non-alcoholic drink, whether
9 carbonated or not, including but not limited to soda water,
10 cola, fruit juice, vegetable juice, carbonated water, and all
11 other preparations commonly known as soft drinks of whatever
12 kind or description that are contained in any closed or
13 sealed bottle, can, carton, or container, regardless of size.
14 "Soft drinks" does not include coffee, tea, non-carbonated
15 water, infant formula, milk or milk products as defined in
16 the Grade A Pasteurized Milk and Milk Products Act, or drinks
17 containing 50% or more natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Code Act,
19 "food for human consumption that is to be consumed off the
20 premises where it is sold" includes all food sold through a
21 vending machine, except soft drinks and food products that
22 are dispensed hot from a vending machine, regardless of the
23 location of the vending machine.
24 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
25 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
26 (35 ILCS 120/2-15) (from Ch. 120, par. 441-15)
27 Section 5-70. Sec. 2-15. Photoprocessing. For purposes
28 of the tax imposed on photographs, negatives, and positives
29 by this Code Act, "photoprocessing" includes, but is not
30 limited to, developing films, positives, negatives, and
31 transparencies, and tinting, coloring, making, and enlarging
32 prints. Photoprocessing does not include color separation,
33 typesetting, and platemaking by photographic means in the
-264- LRB9000671KDdvA
1 graphic arts industry and does not include any procedure,
2 process, or activity connected with the creation of the
3 images on the film from which the negatives, positives, or
4 photographs are derived. The charge for in-house
5 photoprocessing may not be less than the photoprocessor's
6 cost price of materials. In transactions in which products
7 of photoprocessing are sold in conjunction with other
8 services, if a charge for the photoprocessing component is
9 not separately stated, tax is imposed on 50% of the entire
10 selling price unless the sale is made by a professional
11 photographer, in which case tax is imposed on 10% of the
12 entire selling price.
13 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
14 86-928; 86-953; 86-1394; 86-1475.)
15 (35 ILCS 120/2-20) (from Ch. 120, par. 441-20)
16 Section 5-15. Sec. 2-20. Bullion. For purposes of this
17 Act, "Bullion" means gold, silver, or platinum in a bulk
18 state with a purity of not less than 980 parts per 1,000.
19 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
20 86-928; 86-953; 86-1394; 86-1475.)
21 (35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
22 Section 5-20. Sec. 2-25. Computer software. For the
23 purposes of this Act, "Computer software" means a set of
24 statements, data, or instructions to be used directly or
25 indirectly in a computer in order to bring about a certain
26 result in any form in which those statements, data, or
27 instructions may be embodied, transmitted, or fixed, by any
28 method now known or hereafter developed, regardless of
29 whether the statements, data, or instructions are capable of
30 being perceived by or communicated to humans, and includes
31 prewritten or canned software that is held for repeated sale
32 or lease, and all associated documentation and materials, if
-265- LRB9000671KDdvA
1 any, whether contained on magnetic tapes, discs, cards, or
2 other devices or media, but does not include software that is
3 adapted to specific individualized requirements of a
4 purchaser, custom-made and modified software designed for a
5 particular or limited use by a purchaser, or software used to
6 operate exempt machinery and equipment used in the process of
7 manufacturing or assembling tangible personal property for
8 wholesale or retail sale or lease.
9 For the purposes of this Code Act, computer software
10 shall be considered to be tangible personal property.
11 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
12 86-928; 86-953; 86-1394; 86-1475.)
13 (35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
14 Section 5-45. Sec. 2-30. Graphic arts production. For
15 purposes of this Act, "Graphic arts production" means
16 printing by one or more of the common processes or graphic
17 arts production services as those processes and services are
18 defined in Major Group 27 of the U.S. Standard Industrial
19 Classification Manual.
20 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
21 86-928; 86-953; 86-1394; 86-1475.)
22 (35 ILCS 120/2-35) (from Ch. 120, par. 441-35)
23 Section 5-80. Sec. 2-35. Production agriculture. For
24 purposes of this Act, "Production agriculture" means the
25 raising of or the propagation of livestock; crops for sale
26 for human consumption; crops for livestock consumption; and
27 production seed stock grown for the propagation of feed
28 grains and the husbandry of animals or for the purpose of
29 providing a food product, including the husbandry of blood
30 stock as a main source of providing a food product.
31 "Production agriculture" also means animal husbandry,
32 floriculture, aquaculture, horticulture, and viticulture.
-266- LRB9000671KDdvA
1 (Source: P.A. 89-220, eff. 1-1-96.)
2 (35 ILCS 120/2-40) (from Ch. 120, par. 441-40)
3 Section 10-20. Sec. 2-40. Purchaser refunds. If a seller
4 collects an amount (however designated) that purports to
5 reimburse the seller for retailers' occupation tax liability
6 measured by receipts that are not subject to retailers'
7 occupation tax, or if a seller, in collecting an amount
8 (however designated) that purports to reimburse the seller
9 for retailers' occupation tax liability measured by receipts
10 that are subject to tax under this Article Act, collects more
11 from the purchaser than the seller's retailers' occupation
12 tax liability on the transaction, the purchaser shall have a
13 legal right to claim a refund of that amount from the seller.
14 If, however, that amount is not refunded to the purchaser for
15 any reason, the seller is liable to pay that amount to the
16 Department. This paragraph does not apply to an amount
17 collected by the seller as reimbursement for the seller's
18 retailers' occupation tax liability on receipts that are
19 subject to tax under this Article Act as long as the
20 collection is made in compliance with the tax collection
21 brackets prescribed by the Department in its rules and
22 regulations.
23 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
24 86-928; 86-953; 86-1394; 86-1475.)
25 (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
26 Section 30-100. Sec. 2-45. Manufacturing and assembling
27 assembly exemption.
28 (a) For purposes of the retailers' occupation tax and
29 the use tax, the manufacturing and assembling assembly
30 machinery and equipment exemption includes machinery and
31 equipment that replaces machinery and equipment in an
32 existing manufacturing facility as well as machinery and
-267- LRB9000671KDdvA
1 equipment that are for use in an expanded or new
2 manufacturing facility. The manufacturing and assembling
3 machinery and equipment exemption includes the sale of
4 materials to a purchaser who produces exempted types of
5 machinery, equipment, or tools and who rents or leases that
6 machinery, equipment, or tools to a manufacturer of tangible
7 personal property. This exemption also includes the sale of
8 materials to a purchaser who manufactures those materials
9 into an exempted type of machinery, equipment, or tools that
10 the purchaser uses himself or herself in the manufacturing of
11 tangible personal property. For purposes of the use tax, this
12 exemption also includes the sale of exempted types of
13 machinery or equipment to a purchaser who is not the
14 manufacturer, but who rents or leases the use of the property
15 to a manufacturer.
16 (b) For purposes of this Code, the machinery and
17 equipment exemption also includes machinery and equipment
18 used in the general maintenance or repair of exempt machinery
19 and equipment or for in-house manufacture of exempt machinery
20 and equipment. For the purposes of this exemption, terms have
21 the following meanings:
22 (1) "Manufacturing process" means the production of
23 an article of tangible personal property, whether the
24 article is a finished product or an article for use in
25 the process of manufacturing or assembling a different
26 article of tangible personal property, by a procedure
27 commonly regarded as manufacturing, processing,
28 fabricating, or refining that changes some existing
29 material or materials into a material with a different
30 form, use, or name. In relation to a recognized
31 integrated business composed of a series of operations
32 that collectively constitute manufacturing, or
33 individually constitute manufacturing operations, the
34 manufacturing process commences with the first operation
-268- LRB9000671KDdvA
1 or stage of production in the series and does not end
2 until the completion of the final product in the last
3 operation or stage of production in the series. For
4 purposes of this exemption, photoprocessing is a
5 manufacturing process of tangible personal property for
6 wholesale or retail sale.
7 (2) "Assembling process" means the production of an
8 article of tangible personal property, whether the
9 article is a finished product or an article for use in
10 the process of manufacturing or assembling a different
11 article of tangible personal property, by the combination
12 of existing materials in a manner commonly regarded as
13 assembling that results in an article or a material of a
14 different form, use, or name.
15 (3) "Machinery" means major mechanical machines or
16 major components of those machines contributing to a
17 manufacturing or assembling process.
18 (4) "Equipment" includes an independent device or
19 tool separate from machinery but essential to an
20 integrated manufacturing or assembly process; including
21 computers used primarily in operating exempt machinery
22 and equipment in a computer assisted design, computer
23 assisted manufacturing (CAD/CAM) system; any subunit or
24 assembly comprising a component of any machinery or
25 auxiliary, adjunct, or attachment parts of machinery,
26 such as tools, dies, jigs, fixtures, patterns, and molds;
27 and any parts that require periodic replacement in the
28 course of normal operation; but does not include hand
29 tools.
30 The manufacturing and assembling machinery and equipment
31 exemption includes the sale of materials to a purchaser who
32 produces exempted types of machinery, equipment, or tools and
33 who rents or leases that machinery, equipment, or tools to a
34 manufacturer of tangible personal property. This exemption
-269- LRB9000671KDdvA
1 also includes the sale of materials to a purchaser who
2 manufactures those materials into an exempted type of
3 machinery, equipment, or tools that the purchaser uses
4 himself or herself in the manufacturing of tangible personal
5 property.
6 (c) For purposes of this Code, the purchaser of the
7 machinery and equipment who has an active resale registration
8 number shall furnish that number to the seller at the time of
9 purchase. For purposes of the retailers' occupation tax and
10 the service occupation tax, a purchaser of the machinery,
11 equipment, and tools without an active resale registration
12 number shall furnish to the seller a certificate of exemption
13 for each transaction stating facts establishing the exemption
14 for that transaction. For purposes of the use tax and the
15 service use tax, a user of the machinery, equipment, or tools
16 without an active resale registration number shall prepare a
17 certificate of exemption for each transaction stating facts
18 establishing the exemption for that transaction., and That
19 certificate shall be available to the Department for
20 inspection or audit. The Department shall prescribe the form
21 of the certificate. Informal rulings, opinions, or letters
22 issued by the Department in response to an inquiry or request
23 for an opinion from any person regarding the coverage and
24 applicability of this exemption to specific devices shall be
25 published, maintained as a public record, and made available
26 for public inspection and copying. If the informal ruling,
27 opinion, or letter contains trade secrets or other
28 confidential information, where possible, the Department
29 shall delete that information before publication. Whenever
30 informal rulings, opinions, or letters contain a policy of
31 general applicability, the Department shall formulate and
32 adopt that policy as a rule in accordance with the Illinois
33 Administrative Procedure Act.
34 (Source: P.A. 88-505; 88-547.)
-270- LRB9000671KDdvA
1 (35 ILCS 120/2-50) (from Ch. 120, par. 441-50)
2 Section 30-150. Sec. 2-50. Rolling stock exemption. The
3 rolling stock exemption applies to rolling stock used by an
4 interstate carrier for hire, even just between points in
5 Illinois, if the rolling stock transports, for hire, persons
6 whose journeys or property whose shipments originate or
7 terminate outside Illinois.
8 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
9 86-928; 86-953; 86-1394; 86-1475.)
10 (35 ILCS 120/2-55) (from Ch. 120, par. 441-55)
11 Section 10-25. Sec. 2-55. Serviceman transfer. Tangible
12 personal property purchased by a serviceman, as defined in
13 Section 5-125 2 of the Service Occupation Tax Act, is subject
14 to the tax imposed by this Article Act when purchased for
15 transfer by the serviceman incidental to completion of a
16 maintenance agreement.
17 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
18 86-928; 86-953; 86-1394; 86-1475.)
19 (35 ILCS 120/2-60) (from Ch. 120, par. 441-60)
20 Section 30-215. Sec. 2-60. Interstate commerce exemption.
21 No tax is imposed by Article 10 or Article 20 under this Act
22 upon the privilege of engaging in a business in interstate
23 commerce or otherwise, when the business may not, under the
24 Constitution and statutes of the United States, be made the
25 subject of taxation by this State.
26 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
27 86-928; 86-953; 86-1394; 86-1475.)
28 (35 ILCS 120/2-65) (from Ch. 120, par. 441-65)
29 Section 90-15. Sec. 2-65. Liability because of
30 amendatory Act.
31 (a) Revisions in Section 2 (which became now Sections 2
-271- LRB9000671KDdvA
1 through 2-65) of the Retailers' Occupation Tax Act by Public
2 Act 85-1135 do not affect tax liability that arose before
3 January 1, 1990.
4 (b) Revisions in Section 3 (which became Sections 3
5 through 3-80) of the Use Tax Act by Public Act 85-1135 do not
6 affect tax liability that arose before January 1, 1990.
7 (c) Revisions in Section 3 (which became Sections 3
8 through 3-50) of the Service Occupation Tax Act by Public Act
9 85-1135 do not affect tax liability that arose before January
10 1, 1990.
11 (d) Revisions in Section 3 (which became Sections 3
12 through 3-65) of the Service Use Tax Act by Public Act
13 85-1135 do not affect tax liability that arose before January
14 1, 1990.
15 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
16 86-928; 86-953; 86-1394; 86-1475.)
17 (35 ILCS 120/2-70)
18 Section 90-20. Sec. 2-70. Sunset of exemptions, credits,
19 and deductions. The application of every exemption, credit,
20 and deduction against taxes tax imposed by this Code Act that
21 becomes law after September 16, 1994 the effective date of
22 this amendatory Act of 1994 shall be limited by a reasonable
23 and appropriate sunset date. A taxpayer is not entitled to
24 take the exemption, credit, or deduction beginning on the
25 sunset date and thereafter. If a reasonable and appropriate
26 sunset date is not specified in the Public Act that creates
27 the exemption, credit, or deduction, a taxpayer shall not be
28 entitled to take the exemption, credit, or deduction
29 beginning 5 years after the effective date of the Public Act
30 creating the exemption, credit, or deduction and thereafter.
31 (Source: P.A. 88-660, eff. 9-16-94.)
-272- LRB9000671KDdvA
1 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
2 Section 35-5. Certificate of registration.
3 (a) All of the provisions of Section 35-5 and Sections
4 35-25 through 35-45 of this Code concerning registration
5 shall apply to the retailers' occupation tax, the use tax,
6 the service occupation tax, and the service use tax unless
7 otherwise stated. To the extent that any provision
8 specifically applying to the use tax, the service occupation
9 tax, or the service use tax is inconsistent with a general
10 provision applying to all of the taxes, the specific
11 provision shall control.
12 (b) Sec. 2a. It is unlawful for any person to engage in
13 the business of selling tangible personal property at retail
14 in this State without a certificate of registration from the
15 Department. Application for a certificate of registration
16 shall be made to the Department upon forms furnished by it.
17 Each such application shall be signed and verified and shall
18 state: (1) the name and social security number of the
19 applicant; (2) the address of his principal place of
20 business; (3) the address of the principal place of business
21 from which he engages in the business of selling tangible
22 personal property at retail in this State and the addresses
23 of all other places of business, if any (enumerating such
24 addresses, if any, in a separate list attached to and made a
25 part of the application), from which he engages in the
26 business of selling tangible personal property at retail in
27 this State;, and (4) the name and address of the person or
28 persons who will be responsible for filing returns and
29 payment of taxes due under Article 10 of this Code; Act, (5)
30 in the case of a corporation, the name, title, and social
31 security number of each corporate officer;, (6) in the case
32 of a limited liability company, the name, social security
33 number, and FEIN number of each manager and member;, and (7)
34 such other information as the Department may reasonably
-273- LRB9000671KDdvA
1 require. The application shall contain an acceptance of
2 responsibility signed by the person or persons who will be
3 responsible for filing returns and payment of the taxes due
4 under Article 10 this Act. If the applicant will sell
5 tangible personal property at retail through vending
6 machines, his application to register shall indicate the
7 number of vending machines to be so operated; and thereafter,
8 he shall notify the Department by January 31 of the number of
9 vending machines which such person was using in his business
10 of selling tangible personal property at retail on the
11 preceding December 31.
12 The Department may deny a certificate of registration to
13 any applicant if the owner, any partner, any manager or
14 member of a limited liability company, or a corporate officer
15 of the applicant, is or has been the owner, a partner, a
16 manager or member of a limited liability company, or a
17 corporate officer, of another retailer that is in default for
18 moneys due under this Code Act.
19 Section 35-25. Bonds.
20 (a) Every applicant for a certificate of registration
21 hereunder shall, at the time of filing such application,
22 furnish a bond from a surety company authorized to do
23 business in the State of Illinois, or an irrevocable bank
24 letter of credit or a bond signed by 2 personal sureties who
25 have filed, with the Department, sworn statements disclosing
26 net assets equal to at least 3 times the amount of the bond
27 to be required of such applicant, or a bond secured by an
28 assignment of a bank account or certificate of deposit,
29 stocks or bonds, conditioned upon the applicant paying to the
30 State of Illinois all moneys becoming due under this Code Act
31 and under any other State tax law or municipal or county tax
32 ordinance or resolution under which the certificate of
33 registration that is issued to the applicant under Sections
-274- LRB9000671KDdvA
1 35-5 through 35-20 this Act will permit the applicant to
2 engage in business without registering separately under such
3 other law, ordinance or resolution. The Department shall fix
4 the amount of such security in each case, taking into
5 consideration the amount of money expected to become due from
6 the applicant under this Code Act and under any other State
7 tax law or municipal or county tax ordinance or resolution
8 under which the certificate of registration that is issued to
9 the applicant under Sections 35-5 through 35-20 this Act will
10 permit the applicant to engage in business without
11 registering separately under such other law, ordinance or
12 resolution. The amount of security required by the Department
13 shall be such as, in its opinion, will protect the State of
14 Illinois against failure to pay the amount which may become
15 due from the applicant under this Code Act and under any
16 other State tax law or municipal or county tax ordinance or
17 resolution under which the certificate of registration that
18 is issued to the applicant under Sections 35-5 through 35-20
19 this Act will permit the applicant to engage in business
20 without registering separately under such other law,
21 ordinance or resolution, but the amount of the security
22 required by the Department shall not exceed three times the
23 amount of the applicant's average monthly tax liability, or
24 $50,000.00, whichever amount is lower.
25 (b) With respect to security other than bonds (upon
26 which the Department may sue in the event of a forfeiture),
27 if the taxpayer fails to pay, when due, any amount whose
28 payment such security guarantees, the Department shall, after
29 such liability is admitted by the taxpayer or established by
30 the Department through the issuance of a final assessment
31 that has become final under the law, convert the security
32 which that taxpayer has furnished into money for the State,
33 after first giving the taxpayer at least 10 days' written
34 notice, by registered or certified mail, to pay the liability
-275- LRB9000671KDdvA
1 or forfeit such security to the Department. If the security
2 consists of stocks or bonds or other securities which are
3 listed on a public exchange, the Department shall sell such
4 securities through such public exchange. If the security
5 consists of an irrevocable bank letter of credit, the
6 Department shall convert the security in the manner provided
7 for in the Uniform Commercial Code. If the security consists
8 of a bank certificate of deposit, the Department shall
9 convert the security into money by demanding and collecting
10 the amount of such bank certificate of deposit from the bank
11 which issued such certificate. If the security consists of a
12 type of stocks or other securities which are not listed on a
13 public exchange, the Department shall sell such security to
14 the highest and best bidder after giving at least 10 days'
15 notice of the date, time and place of the intended sale by
16 publication in the "State Official Newspaper". If the
17 Department realizes more than the amount of such liability
18 from the security, plus the expenses incurred by the
19 Department in converting the security into money, the
20 Department shall pay such excess to the taxpayer who
21 furnished such security, and the balance shall be paid into
22 the State Treasury.
23 (c) No certificate of registration under this Code shall
24 be issued by the Department until the applicant provides the
25 Department with satisfactory security as herein provided for.
26 (d) The Department shall discharge any surety and shall
27 release and return any security deposited, assigned, pledged
28 or otherwise provided to it by a taxpayer under this Section
29 within 30 days after:
30 (1) such taxpayer becomes a Prior Continuous
31 Compliance taxpayer as defined in Section 35-35; or
32 (2) such taxpayer has ceased to collect receipts on
33 which he is required to remit tax to the Department, has
34 filed a final tax return, and has paid to the Department
-276- LRB9000671KDdvA
1 an amount sufficient to discharge his remaining tax
2 liability, as determined by the Department, under this
3 Code and under every other State tax law or municipal or
4 county tax ordinance or resolution under which the
5 certificate of registration issued under Sections 35-5
6 through 35-20 permits the registrant to engage in
7 business without registering separately under such other
8 law, ordinance or resolution. The Department shall make
9 a final determination of the taxpayer's outstanding tax
10 liability as expeditiously as possible after his final
11 tax return has been filed; if the Department cannot make
12 such final determination within 45 days after receiving
13 the final tax return, within such period it shall so
14 notify the taxpayer, stating its reasons therefor.
15 No certificate of registration under this Act shall be
16 issued by the Department until the applicant provides the
17 Department with satisfactory security as herein provided for.
18 Section 35-30. Issuance of certificate of registration;
19 sub-certificate of registration.
20 (a) Upon receipt of the application for certificate of
21 registration in proper form, and upon approval by the
22 Department of the security furnished by the applicant, the
23 Department shall issue to such applicant a certificate of
24 registration which shall permit the person to whom it is
25 issued to act as a retailer, supplier, or serviceman engage
26 in the business of selling tangible personal property at
27 retail in this State. The certificate of registration shall
28 be conspicuously displayed at the place of business which the
29 person so registered states in his application to be the
30 principal place of business from which he will act as a
31 retailer, supplier, or serviceman engages in the business of
32 selling tangible personal property at retail in this State.
33 No certificate of registration issued to a taxpayer who
-277- LRB9000671KDdvA
1 files returns required by this Code Act on a monthly basis
2 shall be valid after the expiration of 5 years from the date
3 of its issuance or last renewal. The expiration date of a
4 sub-certificate of registration shall be that of the
5 certificate of registration to which the sub-certificate
6 relates. A certificate of registration shall automatically
7 be renewed, subject to revocation as provided by this Code
8 Act, for an additional 5 years from the date of its
9 expiration unless otherwise notified by the Department as
10 provided by this paragraph. Where a taxpayer to whom a
11 certificate of registration is issued under this Code Act is
12 in default to the State of Illinois for moneys due under this
13 Code Act or any other State tax law or municipal or county
14 ordinance administered or enforced by the Department, the
15 Department shall, not less than 120 days before the
16 expiration date of such certificate of registration, give
17 notice to the taxpayer to whom the certificate was issued, of
18 the amount of tax, penalty and interest due and owing from
19 the taxpayer, and that the certificate of registration shall
20 not be automatically renewed upon its expiration date unless
21 the taxpayer, on or before the date of expiration, has paid
22 the defaulted amount in full. A taxpayer to whom such a
23 notice is issued shall be deemed an applicant for renewal.
24 The Department shall promulgate regulations establishing
25 procedures for taxpayers who file returns on a monthly basis
26 but desire and qualify to change to a quarterly or yearly
27 filing basis and will no longer be subject to renewal under
28 this Section, and for taxpayers who file returns on a yearly
29 or quarterly basis but who desire or are required to change
30 to a monthly filing basis and will be subject to renewal
31 under this Section.
32 The Department may in its discretion approve renewal by
33 an applicant who is in default if, at the time of application
34 for renewal, the applicant pays to the Department such
-278- LRB9000671KDdvA
1 percentage of the defaulted amount as may be determined by
2 the Department and agrees in writing to waive all limitations
3 upon the Department for collection of the remaining defaulted
4 amount to the Department over a period not to exceed 5 years
5 from the date of renewal of the certificate; however, no
6 renewal application submitted by an applicant who is in
7 default shall be approved if the immediately preceding
8 renewal by the applicant was conditioned upon the installment
9 payment agreement described in this Section. The payment
10 agreement herein provided for shall be in addition to and not
11 in lieu of the security required by this Section 35-25 of a
12 taxpayer who is no longer considered a prior continuous
13 compliance taxpayer. The execution of the payment agreement
14 as provided in this Code Act shall not toll the accrual of
15 interest at the statutory rate.
16 A certificate of registration issued under this Code Act
17 more than 5 years before the effective date of this
18 amendatory Act of 1989 shall expire and be subject to the
19 renewal provisions of this Section on the next anniversary of
20 the date of issuance of such certificate which occurs more
21 than 6 months after the effective date of this amendatory Act
22 of 1989. A certificate of registration issued less than 5
23 years before the effective date of this amendatory Act of
24 1989 shall expire and be subject to the renewal provisions of
25 this Section on the 5th anniversary of the issuance of the
26 certificate.
27 (b) If the person so registered states that he operates
28 other places of business from which he acts as a retailer,
29 supplier, or serviceman engages in the business of selling
30 tangible personal property at retail in this State, the
31 Department shall furnish him with a sub-certificate of
32 registration for each such place of business, and the
33 applicant shall display the appropriate sub-certificate of
34 registration at each such place of business. All
-279- LRB9000671KDdvA
1 sub-certificates of registration shall bear the same
2 registration number as that appearing upon the certificate of
3 registration to which such sub-certificates relate.
4 (c) If the applicant will sell tangible personal
5 property at retail through vending machines, the Department
6 shall furnish him with a sub-certificate of registration for
7 each such vending machine, and the applicant shall display
8 the appropriate sub-certificate of registration on each such
9 vending machine by attaching the sub-certificate of
10 registration to a conspicuous part of such vending machine.
11 Where the same person engages in 2 or more businesses
12 that are subject to registration under this Code of selling
13 tangible personal property at retail in this State, which
14 businesses are substantially different in character or are
15 engaged in under different trade names or are engaged in
16 under other substantially dissimilar circumstances (so that
17 it is more practicable, from an accounting, auditing or
18 bookkeeping standpoint, for such businesses to be separately
19 registered), the Department may require or permit such person
20 (subject to the same requirements concerning the furnishing
21 of security as those that are provided for in Section 35-25
22 for hereinbefore in this Section as to each application for a
23 certificate of registration) to apply for and obtain a
24 separate certificate of registration for each such business
25 or for any of such businesses, under a single certificate of
26 registration supplemented by related sub-certificates of
27 registration.
28 Section 35-35. Prior continuous compliance taxpayer.
29 (a) Any person who is registered under Section 35-5the
30 "Retailers' Occupation Tax Act" as of March 8, 1963, and who,
31 during the 3-year period immediately prior to March 8, 1963,
32 or during a continuous 3-year period part of which passed
33 immediately before and the remainder of which passes
-280- LRB9000671KDdvA
1 immediately after March 8, 1963, has been so registered
2 continuously and who is determined by the Department not to
3 have been either delinquent or deficient in the payment of
4 tax liability during that period under this Code Act or under
5 any other State tax law or municipal or county tax ordinance
6 or resolution under which the certificate of registration
7 that is issued to the registrant under this Code Act will
8 permit the registrant to engage in business without
9 registering separately under such other law, ordinance or
10 resolution, shall be considered to be a Prior Continuous
11 Compliance taxpayer. Also any taxpayer who has, as verified
12 by the Department, faithfully and continuously complied with
13 the condition of his bond or other security under the
14 provisions of this Code Act for a period of 3 consecutive
15 years shall be considered to be a Prior Continuous Compliance
16 taxpayer.
17 (b) Every Prior Continuous Compliance taxpayer shall be
18 exempt from all requirements under this Code Act concerning
19 the furnishing of security as a condition precedent to his
20 being authorized to engage in the business of selling
21 tangible personal property at retail in this State. This
22 exemption shall continue for each such taxpayer until such
23 time as he may be determined by the Department to be
24 delinquent in the filing of any returns, or is determined by
25 the Department (either through the Department's issuance of a
26 final assessment which has become final under the Code Act,
27 or by the taxpayer's filing of a return which admits tax that
28 is not paid to be due) to be delinquent or deficient in the
29 paying of any tax under this Code Act or under any other
30 State tax law or municipal or county tax ordinance or
31 resolution under which the certificate of registration that
32 is issued to the registrant under Sections 35-5 through 35-20
33 this Act will permit the registrant to engage in business
34 without registering separately under such other law,
-281- LRB9000671KDdvA
1 ordinance or resolution, at which time that taxpayer shall
2 become subject to all the financial responsibility
3 requirements of this Code Act and, as a condition of being
4 allowed to continue to engage in the business of selling
5 tangible personal property at retail, shall be required to
6 post bond or other acceptable security with the Department
7 covering liability which such taxpayer may thereafter incur.
8 Any taxpayer who fails to pay an admitted or established
9 liability under this Code Act may also be required to post
10 bond or other acceptable security with this Department
11 guaranteeing the payment of such admitted or established
12 liability.
13 Section 35-40. Registrants in default. No certificate of
14 registration shall be issued to any person who is in default
15 to the State of Illinois for moneys due under this Code Act
16 or under any other State tax law or municipal or county tax
17 ordinance or resolution under which the certificate of
18 registration that is issued to the applicant under this Code
19 Act will permit the applicant to engage in business without
20 registering separately under such other law, ordinance or
21 resolution.
22 Section 35-45. Hearings. Any person aggrieved by any
23 decision of the Department under Sections 35-5 through 35-40
24 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
27 place fixed for such hearing and shall hold a hearing in
28 conformity with the provisions of this Code Act and then
29 issue its final administrative decision in the matter to such
30 person. In the absence of such a protest within 20 days, the
31 Department's decision shall become final without any further
32 determination being made or notice given.
-282- LRB9000671KDdvA
1 With respect to security other than bonds (upon which the
2 Department may sue in the event of a forfeiture), if the
3 taxpayer fails to pay, when due, any amount whose payment
4 such security guarantees, the Department shall, after such
5 liability is admitted by the taxpayer or established by the
6 Department through the issuance of a final assessment that
7 has become final under the law, convert the security which
8 that taxpayer has furnished into money for the State, after
9 first giving the taxpayer at least 10 days' written notice,
10 by registered or certified mail, to pay the liability or
11 forfeit such security to the Department. If the security
12 consists of stocks or bonds or other securities which are
13 listed on a public exchange, the Department shall sell such
14 securities through such public exchange. If the security
15 consists of an irrevocable bank letter of credit, the
16 Department shall convert the security in the manner provided
17 for in the Uniform Commercial Code. If the security consists
18 of a bank certificate of deposit, the Department shall
19 convert the security into money by demanding and collecting
20 the amount of such bank certificate of deposit from the bank
21 which issued such certificate. If the security consists of a
22 type of stocks or other securities which are not listed on a
23 public exchange, the Department shall sell such security to
24 the highest and best bidder after giving at least 10 days'
25 notice of the date, time and place of the intended sale by
26 publication in the "State Official Newspaper". If the
27 Department realizes more than the amount of such liability
28 from the security, plus the expenses incurred by the
29 Department in converting the security into money, the
30 Department shall pay such excess to the taxpayer who
31 furnished such security, and the balance shall be paid into
32 the State Treasury.
33 The Department shall discharge any surety and shall
34 release and return any security deposited, assigned, pledged
-283- LRB9000671KDdvA
1 or otherwise provided to it by a taxpayer under this Section
2 within 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
8 an amount sufficient to discharge his remaining tax
9 liability, as determined by the Department, under this
10 Act and under every other State tax law or municipal or
11 county tax ordinance or resolution under which the
12 certificate of registration issued under this Act permits
13 the registrant to engage in business without registering
14 separately under such other law, ordinance or resolution.
15 The Department shall make a final determination of the
16 taxpayer's outstanding tax liability as expeditiously as
17 possible after his final tax return has been filed; if
18 the Department cannot make such final determination
19 within 45 days after receiving the final tax return,
20 within such period it shall so notify the taxpayer,
21 stating its reasons therefor.
22 (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
23 (35 ILCS 120/2b) (from Ch. 120, par. 441b)
24 Section 70-5. Revocation of certificate of registration.
25 Sec. 2b. The Department may, after notice and a hearing as
26 provided herein, revoke the certificate of registration of
27 any person who violates any of the provisions of this Code
28 Act. Before revocation of a certificate of registration the
29 Department shall, within 90 days after non-compliance and at
30 least 7 days prior to the date of the hearing, give the
31 person so accused notice in writing of the charge against him
32 or her, and on the date designated shall conduct a hearing
33 upon this matter. The lapse of such 90 day period shall not
-284- LRB9000671KDdvA
1 preclude the Department from conducting revocation
2 proceedings at a later date if necessary. Any hearing held
3 under this Section shall be conducted by the Director of
4 Revenue or by any officer or employee of the Department
5 designated, in writing, by the Director of Revenue.
6 Upon the hearing of any such proceeding, the Director of
7 Revenue, or any officer or employee of the Department
8 designated, in writing, by the Director of Revenue, may
9 administer oaths and the Department may procure by its
10 subpoena the attendance of witnesses and, by its subpoena
11 duces tecum, the production of relevant books and papers. Any
12 circuit court, upon application either of the accused or of
13 the Department, may, by order duly entered, require the
14 attendance of witnesses and the production of relevant books
15 and papers, before the Department in any hearing relating to
16 the revocation of certificates of registration. Upon refusal
17 or neglect to obey the order of the court, the court may
18 compel obedience thereof by proceedings for contempt.
19 The Department may, by application to any circuit court,
20 obtain an injunction restraining any person who engages in
21 the business of selling tangible personal property at retail
22 in this State without a certificate of registration (either
23 because the certificate of registration has been revoked or
24 because of a failure to obtain a certificate of registration
25 in the first instance) from engaging in such business until
26 such person, as if he or she were a new applicant for a
27 certificate of registration, shall comply with all of the
28 conditions, restrictions and requirements of Sections 35-5
29 through 35-45 Section 2a of this Code Act and qualify for and
30 obtain a certificate of registration. Upon refusal or neglect
31 to obey the order of the court, the court may compel
32 obedience thereof by proceedings for contempt.
33 It shall not be a defense in a proceeding before the
34 Department to revoke a certificate of registration issued
-285- LRB9000671KDdvA
1 under this Code the Act, or in any action by the Department
2 to collect any tax due under this Code Act, that the holder
3 of the certificate is a party to an installment payment
4 agreement under Sections 35-5 through 35-45 Section 2a of
5 this Act if the liability which is the basis of the
6 revocation proceeding, or the tax that is sought to be
7 collected: (1) was incurred after the date of the agreement
8 was approved by the Department; or (2) was incurred prior to
9 the date the agreement was approved by the Department, but
10 was not included in the agreement; or (3) was included in the
11 agreement, but the taxpayer is in default of the agreement.
12 (Source: P.A. 86-338; 86-383; 86-1028.)
13 (35 ILCS 120/2c) (from Ch. 120, par. 441c)
14 Section 35-50. Resale number. Sec. 2c. If the purchaser
15 is not registered with the Department as a taxpayer, but
16 claims to be a reseller of the tangible personal property in
17 such a way that such resales are not taxable under this Code
18 Act or under some other tax law which the Department may
19 administer, such purchaser (except in the case of an
20 out-of-State purchaser who will always resell and deliver the
21 property to his customers outside Illinois) shall apply to
22 the Department for a resale number. Such applicant shall
23 state facts which will show the Department why such applicant
24 is not liable for tax under this Code Act or under some other
25 tax law which the Department may administer on any of his
26 resales and shall furnish such additional information as the
27 Department may reasonably require.
28 Upon approval of the application, the Department shall
29 assign a resale number to the applicant and shall certify
30 such number to him. The Department may cancel any such number
31 which is obtained through misrepresentation, or which is used
32 to make a purchase tax-free when the purchase in fact is not
33 a purchase for resale, or which no longer applies because of
-286- LRB9000671KDdvA
1 the purchaser's having discontinued the making of tax exempt
2 resales of the property.
3 The Department may restrict the use of the number to one
4 year at a time or to some other definite period if the
5 Department finds it impracticable or otherwise inadvisable to
6 issue such numbers for indefinite periods.
7 Except as provided hereinabove in this Section, a sale
8 shall be made tax-free on the ground of being a sale for
9 resale if the purchaser has an active registration number or
10 resale number from the Department and furnishes that number
11 to the seller in connection with certifying to the seller
12 that any sale to such purchaser is nontaxable because of
13 being a sale for resale.
14 Failure to present an active registration number or
15 resale number and a certification to the seller that a sale
16 is for resale creates a presumption that a sale is not for
17 resale. This presumption may be rebutted by other evidence
18 that all of the seller's sales are sale for resale, or that a
19 particular sale is a sale for resale.
20 (Source: P.A. 83-1463.)
21 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
22 Section 10-30. Prepayment of tax by motor fuel retailer.
23 Sec. 2d. Any person engaged in the business of selling motor
24 fuel at retail, as defined in the Motor Fuel Tax Law, and who
25 is not a licensed distributor or supplier, as defined in the
26 Motor Fuel Tax Law, shall prepay to his or her distributor,
27 supplier, or other reseller of motor fuel a portion of the
28 tax imposed by this Article Act if the distributor, supplier,
29 or other reseller of motor fuel is registered under Sections
30 35-5 through 35-50 Section 2a or Section 2c of this Code Act.
31 The prepayment requirement provided for in this Section does
32 not apply to liquid propane gas.
33 The retailers' occupation tax paid to the distributor,
-287- LRB9000671KDdvA
1 supplier, or other reseller shall be an amount equal to $0.04
2 per gallon of the motor fuel, except gasohol as defined in
3 Section 5-40 2-10 of this Code Act which shall be an amount
4 equal to $0.03 per gallon, purchased from the distributor,
5 supplier, or other reseller.
6 Any person engaged in the business of selling motor fuel
7 at retail shall be entitled to a credit against tax due under
8 this Article Act in an amount equal to the tax paid to the
9 distributor, supplier, or other reseller.
10 Every distributor, supplier, or other reseller registered
11 as provided in Sections 35-5 through 35-50 Section 2a or
12 Section 2c of this Code Act shall remit the prepaid tax on
13 all motor fuel that is due from any person engaged in the
14 business of selling at retail motor fuel with the returns
15 filed under Section 10-40 or Sections 50-5 through 50-140
16 Section 2f or Section 3 of this Code Act, but the vendors
17 discount provided in Sections 50-5 through 50-140 Section 3
18 shall not apply to the amount of prepaid tax that is
19 remitted. Any distributor or supplier who fails to properly
20 collect and remit the tax shall be liable for the tax. For
21 purposes of this Section, the prepaid tax is due on invoiced
22 gallons sold during a month by the 20th day of the following
23 month.
24 (Source: P.A. 86-1475; 87-14.)
25 (35 ILCS 120/2e) (from Ch. 120, par. 441e)
26 Section 10-35. Motor fuel distributor or supplier;
27 statement of purchases. Sec. 2e. Every such distributor or
28 supplier shall deliver a statement of tax paid to each
29 purchaser and the Department of Revenue not later than the
30 20th day of the month following the month during which a
31 transaction occurred, showing: the number of gallons of motor
32 fuel sold or distributed during the preceding month to that
33 purchaser; identifying the purchaser to whom it was sold or
-288- LRB9000671KDdvA
1 distributed, including the purchaser's tax registration
2 number; and the amount collected from the purchaser.
3 (Source: P.A. 87-14.)
4 (35 ILCS 120/2f) (from Ch. 120, par. 441f)
5 Section 10-40. Resellers of motor fuel; filing returns.
6 Sec. 2f. Resellers of motor fuel shall file a return by the
7 20th of the month following the month during which a
8 transaction occurred showing an itemized statement of the
9 amount of motor fuel sold, distributed and used by the
10 reseller, identifying the purchaser to whom it was sold
11 including the purchaser's tax registration number, the amount
12 of tax collected from the purchaser, or delivery point if the
13 motor fuel was delivered to an unregistered purchaser outside
14 this State, name and address and the total quantity of motor
15 fuel sold or transferred to each purchaser in the preceding
16 calendar month and such other information as the Department
17 may reasonably require.
18 (Source: P.A. 87-14.)
19 (35 ILCS 120/2g) (from Ch. 120, par. 441g)
20 Section 10-45. Procedures for filing return of motor fuel
21 resellers. Sec. 2g. All provisions of Sections 30-30, 35-75,
22 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
23 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
24 apply to the retailers' occupation tax 4 through 13.5 of this
25 Act shall apply, as far as practicable, to returns filed
26 pursuant to Section 10-40 2f.
27 (Source: P.A. 87-895.)
28 (35 ILCS 120/2h) (from Ch. 120, par. 441h)
29 Section 5-25. Corporation, limited liability company,
30 society, association, foundation, or institution organized
31 and operated exclusively for educational purposes.
-289- LRB9000671KDdvA
1 (a) Sec. 2h. For purposes of this Act, A corporation,
2 limited liability company, society, association, foundation
3 or institution organized and operated exclusively for
4 educational purposes shall include: all tax-supported public
5 schools; private schools which offer systematic instruction
6 in useful branches of learning by methods common to public
7 schools and which compare favorably in their scope and
8 intensity with the course of study presented in tax-supported
9 schools; licensed day care centers as defined in Section 2.09
10 of the Child Care Act of 1969 which are operated by a not for
11 profit corporation, society, association, foundation,
12 institution or organization; vocational or technical schools
13 or institutes organized and operated exclusively to provide a
14 course of study of not less than 6 weeks duration and
15 designed to prepare individuals to follow a trade or to
16 pursue a manual, technical, mechanical, industrial, business
17 or commercial occupation.
18 However, a corporation, limited liability company,
19 society, association, foundation or institution organized
20 and operated for the purpose of offering professional, trade
21 or business seminars of short duration, self-improvement or
22 personality development courses, courses which are
23 avocational or recreational in nature, courses pursued
24 entirely by open circuit television or radio, correspondence
25 courses, or courses which do not provide specialized training
26 within a specific vocational or technical field shall not be
27 considered to be organized and operated exclusively for
28 educational purposes.
29 (b) For purposes of the retailers' occupation tax, the
30 use tax, and the service occupation tax, a corporation,
31 limited liability company, society, association, foundation,
32 or institution organized and operated exclusively for
33 educational purposes shall also include licensed day care
34 centers as defined in Section 2.09 of the Child Care Act of
-290- LRB9000671KDdvA
1 1969 which are operated by a not-for-profit corporation,
2 society, association, foundation, institution, or
3 organization.
4 (Source: P.A. 88-480.)
5 (35 ILCS 120/2i) (from Ch. 120, par. 441i)
6 Section 35-70. Exemption from bonding. Sec. 2i.
7 Notwithstanding any other provision to the contrary, any
8 person who is required to file a bond pursuant to any
9 provision of this Code Act and who has continuously complied
10 with all provisions of this Code Act for 24 or more
11 consecutive months, shall no longer be required to comply
12 with the bonding provisions of this Code Act so long as such
13 person continues his compliance with the provisions of this
14 Code Act.
15 (Source: P.A. 84-1408.)
16 (35 ILCS 120/3) (from Ch. 120, par. 442)
17 Section 50-5. Applicability of Sections 50-10 through
18 50-140. All of the provisions of Sections 50-10 through
19 50-140 of this Code shall apply to the retailers' occupation
20 tax, the use tax, the service occupation tax, and the service
21 use tax unless otherwise stated, except that the Sections
22 concerning the disposition by the Department of the money
23 collected under this Code shall not apply to the service
24 occupation tax and the service use tax unless the Section
25 states that it applies to those taxes. To the extent that
26 any provision specifically applying to the use tax, the
27 service occupation tax, or the service use tax is
28 inconsistent with a general provision applying to all of the
29 taxes, the specific provision shall control.
30 Section 50-10. Monthly returns. Sec. 3. Except as
31 provided in Sections 50-5 through 50-140 this Section, on or
-291- LRB9000671KDdvA
1 before the twentieth day of each calendar month, every person
2 engaged in the business of selling tangible personal property
3 at retail in this State during the preceding calendar month
4 shall file a return with the Department, stating:
5 (1) 1. the name of the seller;
6 (2) 2. his residence address and the address of his
7 principal place of business and the address of the
8 principal place of business (if that is a different
9 address) from which he engages in the business of selling
10 tangible personal property at retail in this State;
11 (3) 3. total amount of receipts received by him
12 during the preceding calendar month or quarter, as the
13 case may be, from sales of tangible personal property,
14 and from services furnished, by him during such preceding
15 calendar month or quarter;
16 (4) 4. total amount received by him during the
17 preceding calendar month or quarter on charge and time
18 sales of tangible personal property, and from services
19 furnished, by him prior to the month or quarter for which
20 the return is filed;
21 (5) 5. deductions allowed by law;
22 (6) 6. gross receipts which were received by him
23 during the preceding calendar month or quarter and upon
24 the basis of which the tax is imposed;
25 (7) 7. the amount of credit provided in Section
26 10-30 2d of this Act;
27 (8) 8. the amount of tax due;
28 (9) 9. the signature of the taxpayer; and
29 (10) 10. such other reasonable information as the
30 Department may require.
31 Section 50-40. Failure to sign a return. If a taxpayer
32 fails to sign a return within 30 days after the proper notice
33 and demand for signature by the Department, the return shall
-292- LRB9000671KDdvA
1 be considered valid and any amount shown to be due on the
2 return shall be deemed assessed.
3 Section 50-50. Statement of prepaid tax. Each return
4 shall be accompanied by the statement of prepaid tax issued
5 pursuant to Section 10-35 2e for which credit is claimed.
6 Section 50-160. Manufacturer's Purchase Credit.
7 (a) For purposes of the retailers' occupation tax, a
8 retailer may accept a Manufacturer's Purchase Credit
9 certification from a purchaser in satisfaction of use tax as
10 provided in Section 30-230 3-85 of the Use Tax Act if the
11 purchaser provides the appropriate documentation as required
12 by Section 30-230 3-85 of the Use Tax Act. A Manufacturer's
13 Purchase Credit certification, accepted by a retailer as
14 provided in Section 30-230 3-85 of the Use Tax Act, may be
15 used by that retailer to satisfy retailers' occupation tax
16 liability in the amount claimed in the certification, not to
17 exceed 6.25% of the receipts subject to tax from a qualifying
18 purchase.
19 (b) For purposes of the service occupation tax, a
20 serviceman may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of service use
22 tax as provided in Section 30-230 if the purchaser provides
23 the appropriate documentation as required by Section 30-230.
24 A Manufacturer's Purchase Credit certification, accepted by a
25 serviceman as provided in Section 30-230 may be used by that
26 serviceman to satisfy service occupation tax liability in the
27 amount claimed in the certification, not to exceed 6.25% of
28 the receipts subject to tax from a qualifying purchase.
29 Section 50-30. Quarterly returns. The Department may
30 require returns to be filed on a quarterly basis. If so
31 required, a return for each calendar quarter shall be filed
-293- LRB9000671KDdvA
1 on or before the twentieth day of the calendar month
2 following the end of such calendar quarter. The taxpayer
3 shall also file a return with the Department for each of the
4 first two months of each calendar quarter, on or before the
5 twentieth day of the following calendar month, stating:
6 (1) 1. the name of the seller;
7 (2) 2. the address of the principal place of
8 business from which he engages (i) in the business of
9 selling tangible personal property at retail in this
10 State or (ii) in business as a serviceman in this State;
11 (3) 3. for purposes of the retailers' occupation
12 tax and the use tax, the total amount of taxable receipts
13 received by him during the preceding calendar month from
14 sales of tangible personal property by him during such
15 preceding calendar month, including receipts from charge
16 and time sales, but less all deductions allowed by law
17 or, for purposes of the service occupation tax and the
18 service use tax, the total amount of taxable receipts
19 received by him during the preceding calendar month,
20 including receipts from charge and time sales but less
21 all deductions allowed by law;
22 (4) 4. the amount of credit provided in Section
23 10-30 2d of this Act;
24 (5) 5. the amount of tax due; and
25 (6) for purposes of the use tax, the service
26 occupation tax, and the service use tax, the signature of
27 the taxpayer; and
28 (7) 6. such other reasonable information as the
29 Department may require.
30 Section 50-55. Rounding.
31 (a) If a total amount of less than $1 is payable,
32 refundable or creditable, such amount shall be disregarded if
33 it is less than 50 cents and shall be increased to $1 if it
-294- LRB9000671KDdvA
1 is 50 cents or more.
2 (b) Any amount which is required to be shown or reported
3 on any return or other document under this Code shall, if
4 such amount is not a whole-dollar amount, be increased to the
5 nearest whole-dollar amount in any case where the fractional
6 part of a dollar is 50 cents or more, and decreased to the
7 nearest whole-dollar amount where the fractional part of a
8 dollar is less than 50 cents.
9 Section 50-100. Electronic funds transfer.
10 (a) Beginning October 1, 1993, a taxpayer who has an
11 average monthly tax liability of $150,000 or more shall make
12 all payments required by rules of the Department by
13 electronic funds transfer. Beginning October 1, 1994, a
14 taxpayer who has an average monthly tax liability of $100,000
15 or more shall make all payments required by rules of the
16 Department by electronic funds transfer. Beginning October 1,
17 1995, a taxpayer who has an average monthly tax liability of
18 $50,000 or more shall make all payments required by rules of
19 the Department by electronic funds transfer. The term
20 "average monthly tax liability" shall be the sum of the
21 taxpayer's liabilities under this Code Act, and under all
22 other State and local occupation and use tax laws
23 administered by the Department, for the immediately preceding
24 calendar year divided by 12.
25 (b) Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers
28 required to make payments by electronic funds transfer shall
29 make those payments for a minimum of one year beginning on
30 October 1.
31 (c) Any taxpayer not required to make payments by
32 electronic funds transfer may make payments by electronic
33 funds transfer with the permission of the Department.
-295- LRB9000671KDdvA
1 (d) All taxpayers required to make payment by electronic
2 funds transfer and any taxpayers authorized to voluntarily
3 make payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 (e) The Department shall adopt such rules as are
6 necessary to effectuate a program of electronic funds
7 transfer and the requirements of Sections 50-5 through 50-140
8 this Section.
9 Any amount which is required to be shown or reported on
10 any return or other document under this Act shall, if such
11 amount is not a whole-dollar amount, be increased to the
12 nearest whole-dollar amount in any case where the fractional
13 part of a dollar is 50 cents or more, and decreased to the
14 nearest whole-dollar amount where the fractional part of a
15 dollar is less than 50 cents.
16 Section 50-35. Authorization to file returns on quarter
17 annual or annual basis.
18 (a) If the retailer or serviceman is otherwise required
19 to file a monthly return and if the retailer's or
20 serviceman's average monthly tax liability to the Department
21 does not exceed $200, the Department may authorize his
22 returns to be filed on a quarter annual basis, with the
23 return for January, February and March of a given year being
24 due by April 20 of such year; with the return for April, May
25 and June of a given year being due by July 20 of such year;
26 with the return for July, August and September of a given
27 year being due by October 20 of such year, and with the
28 return for October, November and December of a given year
29 being due by January 20 of the following year.
30 (b) If the retailer or serviceman is otherwise required
31 to file a monthly or quarterly return and if the retailer's
32 or serviceman's average monthly tax liability with the
33 Department does not exceed $50, the Department may authorize
-296- LRB9000671KDdvA
1 his returns to be filed on an annual basis, with the return
2 for a given year being due by January 20 of the following
3 year.
4 (c) Such quarter annual and annual returns, as to form
5 and substance, shall be subject to the same requirements as
6 monthly returns.
7 Section 50-60. Cessation of business. Notwithstanding any
8 other provision in this Code Act concerning the time within
9 which a retailer or serviceman may file his return, in the
10 case of any retailer or serviceman who ceases to engage in a
11 kind of business which makes him responsible for filing
12 returns under this Code Act, such retailer or serviceman
13 shall file a final return under this Code Act with the
14 Department not more than one month after discontinuing such
15 business.
16 Section 50-65. Multiple businesses. Where the same person
17 has more than one business registered with the Department
18 under separate registrations under this Code Act, such person
19 may not file each return that is due as a single return
20 covering all such registered businesses, but shall file
21 separate returns for each such registered business.
22 Section 50-80. Separate return for certain registered
23 property. In addition, With respect to motor vehicles,
24 watercraft, aircraft, and trailers that are required to be
25 registered with an agency of this State, every retailer
26 selling this kind of tangible personal property shall file,
27 with the Department, upon a form to be prescribed and
28 supplied by the Department, a separate return for each such
29 item of tangible personal property which the retailer sells,
30 except that where, in the same transaction, a retailer of
31 aircraft, watercraft, motor vehicles or trailers transfers
-297- LRB9000671KDdvA
1 more than one aircraft, watercraft, motor vehicle or trailer
2 to another aircraft, watercraft, motor vehicle retailer or
3 trailer retailer for the purpose of resale, that seller for
4 resale may report the transfer of all aircraft, watercraft,
5 motor vehicles or trailers involved in that transaction to
6 the Department on the same uniform invoice-transaction
7 reporting return form.
8 Section 5-150. Watercraft. For purposes of the
9 retailers' occupation tax and the use tax, this Section,
10 "watercraft" means a Class 2, Class 3, or Class 4 watercraft
11 as defined in Section 3-2 of the Boat Registration and Safety
12 Act, a personal watercraft, or any boat equipped with an
13 inboard motor.
14 Section 50-85. Retailer selling only vehicles,
15 watercraft, aircraft, or trailers. Any retailer who sells
16 only motor vehicles, watercraft, aircraft, or trailers that
17 are required to be registered with an agency of this State,
18 so that all retailers' occupation tax liability is required
19 to be reported, and is reported, on such transaction
20 reporting returns and who is not otherwise required to file
21 monthly or quarterly returns, need not file monthly or
22 quarterly returns. However, those retailers shall be
23 required to file returns on an annual basis.
24 Section 50-90. Transaction reporting return.
25 (a) The transaction reporting return, in the case of
26 motor vehicles or trailers that are required to be registered
27 with an agency of this State, shall be the same document as
28 the Uniform Invoice referred to in Section 5-402 of the
29 Illinois Vehicle Code and must show the name and address of
30 the seller; the name and address of the purchaser; the amount
31 of the selling price including the amount allowed by the
-298- LRB9000671KDdvA
1 retailer for traded-in property, if any; the amount allowed
2 by the retailer for the traded-in tangible personal property,
3 if any, to the extent to which Section 5-120 1 of this Act
4 allows an exemption for the value of traded-in property; the
5 balance payable after deducting such trade-in allowance from
6 the total selling price; the amount of tax due from the
7 retailer with respect to such transaction; the amount of tax
8 collected from the purchaser by the retailer on such
9 transaction (or satisfactory evidence that such tax is not
10 due in that particular instance, if that is claimed to be the
11 fact); the place and date of the sale; a sufficient
12 identification of the property sold; such other information
13 as is required in Section 5-402 of the Illinois Vehicle Code,
14 and such other information as the Department may reasonably
15 require.
16 (b) The transaction reporting return in the case of
17 watercraft or aircraft must show the name and address of the
18 seller; the name and address of the purchaser; the amount of
19 the selling price including the amount allowed by the
20 retailer for traded-in property, if any; the amount allowed
21 by the retailer for the traded-in tangible personal property,
22 if any, to the extent to which Section 5-120 1 of this Act
23 allows an exemption for the value of traded-in property; the
24 balance payable after deducting such trade-in allowance from
25 the total selling price; the amount of tax due from the
26 retailer with respect to such transaction; the amount of tax
27 collected from the purchaser by the retailer on such
28 transaction (or satisfactory evidence that such tax is not
29 due in that particular instance, if that is claimed to be the
30 fact); the place and date of the sale, a sufficient
31 identification of the property sold, and such other
32 information as the Department may reasonably require.
33 (c) Such transaction reporting return shall be filed not
34 later than 20 days after the day of delivery of the item that
-299- LRB9000671KDdvA
1 is being sold, but may be filed by the retailer at any time
2 sooner than that if he chooses to do so. The transaction
3 reporting return and tax remittance or proof of exemption
4 from the Illinois use tax may be transmitted to the
5 Department by way of the State agency with which, or State
6 officer with whom the tangible personal property must be
7 titled or registered (if titling or registration is required)
8 if the Department and such agency or State officer determine
9 that this procedure will expedite the processing of
10 applications for title or registration.
11 (d) With each such transaction reporting return, the
12 retailer shall remit the proper amount of tax due (or shall
13 submit satisfactory evidence that the sale is not taxable if
14 that is the case), to the Department or its agents, whereupon
15 the Department shall issue, in the purchaser's name, a use
16 tax receipt (or a certificate of exemption if the Department
17 is satisfied that the particular sale is tax exempt) which
18 such purchaser may submit to the agency with which, or State
19 officer with whom, he must title or register the tangible
20 personal property that is involved (if titling or
21 registration is required) in support of such purchaser's
22 application for an Illinois certificate or other evidence of
23 title or registration to such tangible personal property.
24 (e) No retailer's failure or refusal to remit tax under
25 this Code Act precludes a user, who has paid the proper tax
26 to the retailer, from obtaining his certificate of title or
27 other evidence of title or registration (if titling or
28 registration is required) upon satisfying the Department that
29 such user has paid the proper tax (if tax is due) to the
30 retailer. The Department shall adopt appropriate rules to
31 carry out the mandate of this subsection paragraph.
32 (f) If the user who would otherwise pay tax to the
33 retailer wants the transaction reporting return filed and the
34 payment of the tax or proof of exemption made to the
-300- LRB9000671KDdvA
1 Department before the retailer is willing to take these
2 actions and such user has not paid the tax to the retailer,
3 such user may certify to the fact of such delay by the
4 retailer and may (upon the Department being satisfied of the
5 truth of such certification) transmit the information
6 required by the transaction reporting return and the
7 remittance for tax or proof of exemption directly to the
8 Department and obtain his tax receipt or exemption
9 determination, in which event the transaction reporting
10 return and tax remittance (if a tax payment was required)
11 shall be credited by the Department to the proper retailer's
12 account with the Department, but without the 2.1% or 1.75%
13 discount provided for in this Section 50-110 being allowed.
14 When the user pays the tax directly to the Department, he
15 shall pay the tax in the same amount and in the same form in
16 which it would be remitted if the tax had been remitted to
17 the Department by the retailer.
18 Section 50-105. Refunds.
19 (a) Refunds made by the seller during the preceding
20 return period to purchasers, on account of tangible personal
21 property returned to the seller, shall be allowed as a
22 deduction under subdivision 5 of his monthly or quarterly
23 return, as the case may be, in case the seller had
24 theretofore included the receipts from the sale of such
25 tangible personal property in a return filed by him and had
26 paid the tax imposed by Article 10 this Act with respect to
27 such receipts.
28 (b) For purposes of the use tax, the service occupation
29 tax, and the service use tax, where a retailer or serviceman
30 collects the tax with respect to the selling price of
31 property which he sells and the purchaser thereafter returns
32 such property and the retailer or serviceman refunds the
33 selling price thereof to the purchaser, such retailer or
-301- LRB9000671KDdvA
1 serviceman shall also refund, to the purchaser, the tax so
2 collected from the purchaser. When filing his return for the
3 period in which he refunds such tax to the purchaser, the
4 retailer or serviceman may deduct the amount of the tax so
5 refunded by him to the purchaser from any other service use
6 tax, service occupation tax, retailers' occupation tax or use
7 tax which such retailer or serviceman may be required to pay
8 or remit to the Department, as shown by such return, provided
9 that the amount of the tax to be deducted was previously
10 remitted to the Department by such retailer or serviceman. If
11 the retailer or serviceman has not previously remitted the
12 amount of such tax to the Department, he shall be entitled to
13 no deduction hereunder upon refunding such tax to the
14 purchaser.
15 Section 50-45. Signature on return for a corporation or
16 limited liability company.
17 (a) Where the seller is a corporation, the return filed
18 on behalf of such corporation shall be signed by the
19 president, vice-president, secretary or treasurer or by the
20 properly accredited agent of such corporation.
21 (b) Where the seller is a limited liability company, the
22 return filed on behalf of the limited liability company shall
23 be signed by a manager, member, or properly accredited agent
24 of the limited liability company.
25 Section 50-110. Payment of tax by retailer or serviceman.
26 (a) Except as provided in Sections 50-5 through 50-140
27 this Section, the retailer filing the return under Sections
28 50-5 through 50-140 this Section shall, at the time of filing
29 such return, pay to the Department the amount of tax imposed
30 by this Code Act less a discount of 2.1% prior to January 1,
31 1990 and 1.75% on and after January 1, 1990, or $5 per
32 calendar year, whichever is greater, which is allowed to
-302- LRB9000671KDdvA
1 reimburse the retailer for the expenses incurred in keeping
2 records, preparing and filing returns, remitting the tax and
3 supplying data to the Department on request. Any prepayment
4 made pursuant to Section 10-30 2d of this Act shall be
5 included in the amount on which such 2.1% or 1.75% discount
6 is computed.
7 (b) For purposes of the use tax, the service occupation
8 tax, and the service use tax, each retailer or serviceman
9 required or authorized to collect the taxes imposed by
10 Articles 15, 20, or 25 shall pay to the Department the amount
11 of such tax (except as otherwise provided) at the time when
12 he is required to file his return for the period during which
13 such tax was collected, less a discount of 2.1% prior to
14 January 1, 1990, and 1.75% on and after January 1, 1990, or
15 $5 per calendar year, whichever is greater, which is allowed
16 to reimburse the retailer or serviceman for expenses incurred
17 in collecting the tax, keeping records, preparing and filing
18 returns, remitting the tax and supplying data to the
19 Department on request. For purposes of the use tax, this
20 subsection shall not apply to motor vehicles, watercraft,
21 aircraft, and trailers that are required to be registered
22 with an agency of this State.
23 (c) In the case of retailers who report and pay the tax
24 on a transaction by transaction basis, as provided in
25 Sections 50-5 through 50-140 this Section, such discount
26 shall be taken with each such tax remittance instead of when
27 such retailer files his periodic return.
28 (d) For purposes of the use tax, a retailer need not
29 remit that part of any tax collected by him to the extent
30 that he is required to remit and does remit the tax imposed
31 by Article 10, with respect to the sale of the same property.
32 (e) For purposes of the service use tax, a serviceman
33 need not remit that part of any tax collected by him to the
34 extent that he is required to pay and does pay the tax
-303- LRB9000671KDdvA
1 imposed by Article 20 with respect to his sale of service
2 involving the incidental transfer by him of the same
3 property.
4 Section 50-120. Quarter-monthly payments.
5 (a) If the taxpayer's average monthly tax liability to
6 the Department under this Code Act, the Use Tax Act, the
7 Service Occupation Tax Act, and the Service Use Tax Act,
8 excluding any liability for prepaid sales tax to be remitted
9 in accordance with Section 10-30 2d of this Act, was $10,000
10 or more during the preceding 4 complete calendar quarters, he
11 shall file a return with the Department each month by the
12 20th day of the month next following the month during which
13 such tax liability is incurred and shall make payments to the
14 Department on or before the 7th, 15th, 22nd and last day of
15 the month during which such liability is incurred. If the
16 month during which such tax liability is incurred began prior
17 to January 1, 1985, each payment shall be in an amount equal
18 to 1/4 of the taxpayer's actual liability for the month or an
19 amount set by the Department not to exceed 1/4 of the average
20 monthly liability of the taxpayer to the Department for the
21 preceding 4 complete calendar quarters (excluding the month
22 of highest liability and the month of lowest liability in
23 such 4 quarter period). If the month during which such tax
24 liability is incurred begins on or after January 1, 1985 and
25 prior to January 1, 1987, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 27.5% of the taxpayer's liability for the same
28 calendar month of the preceding year. If the month during
29 which such tax liability is incurred begins on or after
30 January 1, 1987 and prior to January 1, 1988, each payment
31 shall be in an amount equal to 22.5% of the taxpayer's actual
32 liability for the month or 26.25% of the taxpayer's liability
33 for the same calendar month of the preceding year. If the
-304- LRB9000671KDdvA
1 month during which such tax liability is incurred begins on
2 or after January 1, 1988, and prior to January 1, 1989, or
3 begins on or after January 1, 1996, each payment shall be in
4 an amount equal to 22.5% of the taxpayer's actual liability
5 for the month or 25% of the taxpayer's liability for the same
6 calendar month of the preceding year. If the month during
7 which such tax liability is incurred begins on or after
8 January 1, 1989, and prior to January 1, 1996, each payment
9 shall be in an amount equal to 22.5% of the taxpayer's actual
10 liability for the month or 25% of the taxpayer's liability
11 for the same calendar month of the preceding year or 100% of
12 the taxpayer's actual liability for the quarter monthly
13 reporting period. The amount of such quarter monthly
14 payments shall be credited against the final tax liability of
15 the taxpayer's return for that month. Once applicable, the
16 requirement of the making of quarter monthly payments to the
17 Department by taxpayers having an average monthly tax
18 liability of $10,000 or more as determined in the manner
19 provided above shall continue until such taxpayer's average
20 monthly liability to the Department during the preceding 4
21 complete calendar quarters (excluding the month of highest
22 liability and the month of lowest liability) is less than
23 $9,000, or until such taxpayer's average monthly liability to
24 the Department as computed for each calendar quarter of the 4
25 preceding complete calendar quarter period is less than
26 $10,000. However, if a taxpayer can show the Department that
27 a substantial change in the taxpayer's business has occurred
28 which causes the taxpayer to anticipate that his average
29 monthly tax liability for the reasonably foreseeable future
30 will fall below $10,000, then such taxpayer may petition the
31 Department for a change in such taxpayer's reporting status.
32 The Department shall change such taxpayer's reporting status
33 unless it finds that such change is seasonal in nature and
34 not likely to be long term. If any such quarter monthly
-305- LRB9000671KDdvA
1 payment is not paid at the time or in the amount required by
2 this Section, then the taxpayer's 2.1% or 1.75% vendors'
3 discount shall be reduced by 2.1% or 1.75% of the difference
4 between the minimum amount due as a payment and the amount of
5 such quarter monthly payment actually and timely paid, and
6 the taxpayer shall be liable for penalties and interest on
7 such difference, except insofar as the taxpayer has
8 previously made payments for that month to the Department in
9 excess of the minimum payments previously due as provided in
10 Sections 50-5 through 50-140 this Section. The Department
11 shall make reasonable rules and regulations to govern the
12 quarter monthly payment amount and quarter monthly payment
13 dates for taxpayers who file on other than a calendar monthly
14 basis.
15 (b) Without regard to whether a taxpayer is required to
16 make quarter monthly payments as specified above, any
17 taxpayer who is required by Section 10-30 2d of this Act to
18 collect and remit prepaid taxes and has collected prepaid
19 taxes which average in excess of $25,000 per month during the
20 preceding 2 complete calendar quarters, shall file a return
21 with the Department as required by Section 10-40 2f and shall
22 make payments to the Department on or before the 7th, 15th,
23 22nd and last day of the month during which such liability is
24 incurred. If the month during which such tax liability is
25 incurred began prior to the effective date of this amendatory
26 Act of 1985, each payment shall be in an amount not less than
27 22.5% of the taxpayer's actual liability under Section 10-30
28 2d. If the month during which such tax liability is incurred
29 begins on or after January 1, 1986, each payment shall be in
30 an amount equal to 22.5% of the taxpayer's actual liability
31 for the month or 27.5% of the taxpayer's liability for the
32 same calendar month of the preceding calendar year. If the
33 month during which such tax liability is incurred begins on
34 or after January 1, 1987, each payment shall be in an amount
-306- LRB9000671KDdvA
1 equal to 22.5% of the taxpayer's actual liability for the
2 month or 26.25% of the taxpayer's liability for the same
3 calendar month of the preceding year. The amount of such
4 quarter monthly payments shall be credited against the final
5 tax liability of the taxpayer's return for that month filed
6 under Sections 50-5 through 50-140 this Section or Section
7 10-40 2f, as the case may be. Once applicable, the
8 requirement of the making of quarter monthly payments to the
9 Department pursuant to this subsection paragraph shall
10 continue until such taxpayer's average monthly prepaid tax
11 collections during the preceding 2 complete calendar quarters
12 is $25,000 or less. If any such quarter monthly payment is
13 not paid at the time or in the amount required, the taxpayer
14 shall be liable for penalties and interest on such
15 difference, except insofar as the taxpayer has previously
16 made payments for that month in excess of the minimum
17 payments previously due.
18 Section 50-125. Credit memorandum.
19 (a) If any payment provided for in Sections 50-5 through
20 50-140 this Section exceeds the taxpayer's liabilities under
21 this Code Act, the Use Tax Act, the Service Occupation Tax
22 Act and the Service Use Tax Act, as shown on an original
23 monthly return, the Department shall, if requested by the
24 taxpayer, issue to the taxpayer a credit memorandum no later
25 than 30 days after the date of payment. The credit evidenced
26 by such credit memorandum may be assigned by the taxpayer to
27 a similar taxpayer under this Code Act, the Use Tax Act, the
28 Service Occupation Tax Act or the Service Use Tax Act, in
29 accordance with reasonable rules and regulations to be
30 prescribed by the Department. If no such request is made,
31 the taxpayer may credit such excess payment against tax
32 liability subsequently to be remitted to the Department under
33 this Code Act, the Use Tax Act, the Service Occupation Tax
-307- LRB9000671KDdvA
1 Act or the Service Use Tax Act, in accordance with reasonable
2 rules and regulations prescribed by the Department.
3 (b) For purposes of the use tax, if any such payment
4 provided for in Sections 50-5 through 50-140 exceeds the
5 taxpayer's liabilities under this Code, as shown by an
6 original monthly return, the Department shall issue to the
7 taxpayer a credit memorandum no later than 30 days after the
8 date of payment, which memorandum may be submitted by the
9 taxpayer to the Department in payment of tax liability
10 subsequently to be remitted by the taxpayer to the Department
11 or be assigned by the taxpayer to a similar taxpayer under
12 this Code, in accordance with reasonable rules and
13 regulations to be prescribed by the Department, except that
14 if such excess payment is shown on an original monthly return
15 and is made after December 31, 1986, no credit memorandum
16 shall be issued, unless requested by the taxpayer. If no
17 such request is made, the taxpayer may credit such excess
18 payment against tax liability subsequently to be remitted by
19 the taxpayer to the Department under this Code, in accordance
20 with reasonable rules and regulations prescribed by the
21 Department.
22 (c) If the Department subsequently determines determined
23 that all or any part of the credit taken was not actually due
24 to the taxpayer, the taxpayer's 2.1% or and 1.75% vendor's
25 discount shall be reduced by 2.1% or 1.75% of the difference
26 between the credit taken and that actually due, and the that
27 taxpayer shall be liable for penalties and interest on such
28 difference.
29 Section 50-130. Credit for motor fuel retailer. If a
30 retailer of motor fuel is entitled to a credit under Section
31 10-30 2d of this Act which exceeds the taxpayer's liability
32 to the Department under Article 10 this Act for the month
33 which the taxpayer is filing a return, the Department shall
-308- LRB9000671KDdvA
1 issue the taxpayer a credit memorandum for the excess.
2 Section 85-5. Disposition of retailers' occupation tax
3 receipts. This Section applies to the retailers' occupation
4 tax only. Beginning January 1, 1990, each month the
5 Department shall pay into the Local Government Tax Fund, a
6 special fund in the State treasury which is hereby created,
7 the net revenue realized for the preceding month from the 1%
8 tax on sales of food for human consumption which is to be
9 consumed off the premises where it is sold (other than
10 alcoholic beverages, soft drinks and food which has been
11 prepared for immediate consumption) and prescription and
12 nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used
14 by diabetics.
15 Beginning January 1, 1990, each month the Department
16 shall pay into the County and Mass Transit District Fund, a
17 special fund in the State treasury which is hereby created,
18 4% of the net revenue realized for the preceding month from
19 the 6.25% general rate.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the Local Government Tax Fund 16% of the net
22 revenue realized for the preceding month from the 6.25%
23 general rate on the selling price of tangible personal
24 property.
25 Of the remainder of the moneys received by the Department
26 pursuant to Article 10, disposition of funds shall be made as
27 provided in Section 85-25.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in this Section and Section 85-25,
30 disposition of funds shall be made as provided in Section
31 85-30.
32 Subject to payment of amounts into the Build Illinois
33 Fund and the McCormick Place Expansion Project Fund pursuant
-309- LRB9000671KDdvA
1 to this Article, each month the Department shall pay into the
2 Local Government Distributive Fund 0.4% of the net revenue
3 realized for the preceding month from the 5% general rate or
4 0.4% of 80% of the net revenue realized for the preceding
5 month from the 6.25% general rate, as the case may be, on the
6 selling price of tangible personal property which amount
7 shall, subject to appropriation, be distributed as provided
8 in Section 2 of the State Revenue Sharing Act. No payments
9 or distributions pursuant to this paragraph shall be made if
10 the tax imposed by Article 10 on photoprocessing products is
11 declared unconstitutional, or if the proceeds from such tax
12 are unavailable for distribution because of litigation.
13 Subject to payment of amounts into the Build Illinois
14 Fund and the McCormick Place Expansion Project pursuant this
15 Article, beginning July 1, 1993, the Department shall each
16 month pay into the Illinois Tax Increment Fund 0.27% of 80%
17 of the net revenue realized for the preceding month from the
18 6.25% general rate on the selling price of tangible personal
19 property.
20 Of the remainder of the moneys received by the Department
21 pursuant to Article 10, 75% thereof shall be paid into the
22 State Treasury and 25% shall be reserved in a special account
23 and used only for the transfer to the Common School Fund as
24 part of the monthly transfer from the General Revenue Fund in
25 accordance with Section 8a of the State Finance Act.
26 As soon as possible after the first day of each month,
27 upon certification of the Department of Revenue, the
28 Comptroller shall order transferred and the Treasurer shall
29 transfer from the General Revenue Fund to the Motor Fuel Tax
30 Fund an amount equal to 1.7% of 80% of the net revenue
31 realized under Article 10 for the second preceding month;
32 except that this transfer shall not be made for the months
33 February through June, 1992.
34 For purposes of this Section, net revenue realized for a
-310- LRB9000671KDdvA
1 month shall be the revenue collected by the State pursuant to
2 Article 10, less the amount paid out during that month as
3 refunds to taxpayers for overpayment of liability.
4 Section 85-25. Payments to the Build Illinois Fund. Of
5 the remainder of the moneys received by the Department
6 pursuant to Article 10, Article 15, Article 20, or Article
7 25, as the case may be this Act, (a) 1.75% thereof shall be
8 paid into the Build Illinois Fund and (b) prior to July 1,
9 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
10 be paid into the Build Illinois Fund; provided, however, that
11 if in any fiscal year the sum of (1) the aggregate of 2.2% or
12 3.8%, as the case may be, of the moneys received by the
13 Department and required to be paid into the Build Illinois
14 Fund pursuant to this Code Act, Section 9 of the Use Tax Act,
15 Section 9 of the Service Use Tax Act, and Section 9 of the
16 Service Occupation Tax Act, such Acts being hereinafter
17 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
18 the case may be, of moneys being hereinafter called the "Tax
19 Code Act Amount", and (2) the amount transferred to the Build
20 Illinois Fund from the State and Local Sales Tax Reform Fund
21 shall be less than the Annual Specified Amount (as
22 hereinafter defined), an amount equal to the difference shall
23 be immediately paid into the Build Illinois Fund from other
24 moneys received by the Department pursuant to this Code the
25 Tax Acts; the "Annual Specified Amount" means the amounts
26 specified below for fiscal years 1986 through 1993:
27 Fiscal Year Annual Specified Amount
28 1986 $54,800,000
29 1987 $76,650,000
30 1988 $80,480,000
31 1989 $88,510,000
32 1990 $115,330,000
33 1991 $145,470,000
-311- LRB9000671KDdvA
1 1992 $182,730,000
2 1993 $206,520,000;
3 and means the Certified Annual Debt Service Requirement (as
4 defined in Section 13 of the Build Illinois Bond Act) or the
5 Tax Code Act Amount, whichever is greater, for fiscal year
6 1994 and each fiscal year thereafter; and further provided,
7 that if on the last business day of any month the sum of (1)
8 the Tax Code Act Amount required to be deposited into the
9 Build Illinois Bond Account in the Build Illinois Fund during
10 such month and (2) the amount transferred to the Build
11 Illinois Fund from the State and Local Sales Tax Reform Fund
12 shall have been less than 1/12 of the Annual Specified
13 Amount, an amount equal to the difference shall be
14 immediately paid into the Build Illinois Fund from other
15 moneys received by the Department pursuant to this Code the
16 Tax Acts; and, further provided, that in no event shall the
17 payments required under the preceding proviso result in
18 aggregate payments into the Build Illinois Fund pursuant to
19 this clause (b) for any fiscal year in excess of the greater
20 of (i) the Tax Code Act Amount or (ii) the Annual Specified
21 Amount for such fiscal year. The amounts payable into the
22 Build Illinois Fund under clause (b) of the first sentence in
23 this paragraph shall be payable only until such time as the
24 aggregate amount on deposit under each trust indenture
25 securing Bonds issued and outstanding pursuant to the Build
26 Illinois Bond Act is sufficient, taking into account any
27 future investment income, to fully provide, in accordance
28 with such indenture, for the defeasance of or the payment of
29 the principal of, premium, if any, and interest on the Bonds
30 secured by such indenture and on any Bonds expected to be
31 issued thereafter and all fees and costs payable with respect
32 thereto, all as certified by the Director of the Bureau of
33 the Budget. If on the last business day of any month in
34 which Bonds are outstanding pursuant to the Build Illinois
-312- LRB9000671KDdvA
1 Bond Act, the aggregate of moneys deposited in the Build
2 Illinois Bond Account in the Build Illinois Fund in such
3 month shall be less than the amount required to be
4 transferred in such month from the Build Illinois Bond
5 Account to the Build Illinois Bond Retirement and Interest
6 Fund pursuant to Section 13 of the Build Illinois Bond Act,
7 an amount equal to such deficiency shall be immediately paid
8 from other moneys received by the Department pursuant to this
9 Code the Tax Acts to the Build Illinois Fund; provided,
10 however, that any amounts paid to the Build Illinois Fund in
11 any fiscal year pursuant to this sentence shall be deemed to
12 constitute payments pursuant to clause (b) of the first
13 sentence of this paragraph and shall reduce the amount
14 otherwise payable for such fiscal year pursuant to that
15 clause (b). The moneys received by the Department pursuant
16 to this Code Act and required to be deposited into the Build
17 Illinois Fund are subject to the pledge, claim and charge set
18 forth in Section 12 of the Build Illinois Bond Act.
19 Section 85-30. Payments to the McCormick Place Expansion
20 Project Fund. Subject to payment of amounts into the Build
21 Illinois Fund as provided in Sections 85-5 through 85-25 the
22 preceding paragraph or in any amendment thereto hereafter
23 enacted, the following specified monthly installment of the
24 amount requested in the certificate of the Chairman of the
25 Metropolitan Pier and Exposition Authority provided under
26 Section 8.25f of the State Finance Act, but not in excess of
27 sums designated as "Total Deposit", shall be deposited in the
28 aggregate from collections under Sections 50-5 through 50-140
29 Section 9 of the Use Tax Act, Section 9 of the Service Use
30 Tax Act, Section 9 of the Service Occupation Tax Act, and
31 Section 3 of the Retailers' Occupation Tax Act into the
32 McCormick Place Expansion Project Fund in the specified
33 fiscal years.
-313- LRB9000671KDdvA
1 Fiscal Year Total Deposit
2 1993 $0
3 1994 53,000,000
4 1995 58,000,000
5 1996 61,000,000
6 1997 64,000,000
7 1998 68,000,000
8 1999 71,000,000
9 2000 75,000,000
10 2001 80,000,000
11 2002 84,000,000
12 2003 89,000,000
13 2004 and 93,000,000
14 each fiscal year
15 thereafter that bonds
16 are outstanding under
17 Section 13.2 of the
18 Metropolitan Pier and
19 Exposition Authority
20 Act.
21 Beginning July 20, 1993 and in each month of each fiscal
22 year thereafter, one-eighth of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority for that fiscal year, less the amount
25 deposited into the McCormick Place Expansion Project Fund by
26 the State Treasurer in the respective month under subsection
27 (g) of Section 13 of the Metropolitan Pier and Exposition
28 Authority Act, plus cumulative deficiencies in the deposits
29 required under this Section for previous months and years,
30 shall be deposited into the McCormick Place Expansion Project
31 Fund, until the full amount requested for the fiscal year,
32 but not in excess of the amount specified above as "Total
33 Deposit", has been deposited.
34 Subject to payment of amounts into the Build Illinois
-314- LRB9000671KDdvA
1 Fund and the McCormick Place Expansion Project Fund pursuant
2 to the preceding paragraphs or in any amendment thereto
3 hereafter enacted, each month the Department shall pay into
4 the Local Government Distributive Fund 0.4% of the net
5 revenue realized for the preceding month from the 5% general
6 rate or 0.4% of 80% of the net revenue realized for the
7 preceding month from the 6.25% general rate, as the case may
8 be, on the selling price of tangible personal property which
9 amount shall, subject to appropriation, be distributed as
10 provided in Section 2 of the State Revenue Sharing Act. No
11 payments or distributions pursuant to this paragraph shall be
12 made if the tax imposed by this Act on photoprocessing
13 products is declared unconstitutional, or if the proceeds
14 from such tax are unavailable for distribution because of
15 litigation.
16 Subject to payment of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project to the preceding
18 paragraphs or in any amendments thereto hereafter enacted,
19 beginning July 1, 1993, the Department shall each month pay
20 into the Illinois Tax Increment Fund 0.27% of 80% of the net
21 revenue realized for the preceding month from the 6.25%
22 general rate on the selling price of tangible personal
23 property.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, 75% thereof shall be paid into the
26 State Treasury and 25% shall be reserved in a special account
27 and used only for the transfer to the Common School Fund as
28 part of the monthly transfer from the General Revenue Fund in
29 accordance with Section 8a of the State Finance Act.
30 As soon as possible after the first day of each month,
31 upon certification of the Department of Revenue, the
32 Comptroller shall order transferred and the Treasurer shall
33 transfer from the General Revenue Fund to the Motor Fuel Tax
34 Fund an amount equal to 1.7% of 80% of the net revenue
-315- LRB9000671KDdvA
1 realized under Article 10 for the second preceding month;
2 except that this transfer shall not be made for the months
3 February through June, 1992.
4 For purposes of this Section, net revenue realized for a
5 month shall be the revenue collected by the State pursuant to
6 this Act, less the amount paid out during that month as
7 refunds to taxpayers for overpayment of liability.
8 Section 50-95. Annual information return.
9 (a) The Department may, upon separate written notice to
10 a taxpayer, require the taxpayer to prepare and file with the
11 Department on a form prescribed by the Department within not
12 less than 60 days after receipt of the notice an annual
13 information return for the tax year specified in the notice.
14 Such annual return to the Department shall include a
15 statement of gross receipts as shown by the taxpayer's
16 retailer's last federal income tax return. If the total
17 receipts of the business as reported in the federal income
18 tax return do not agree with the gross receipts reported to
19 the Department of Revenue for the same period, the taxpayer
20 retailer shall attach to his annual return a schedule showing
21 a reconciliation of the 2 amounts and the reasons for the
22 difference. The taxpayer's retailer's annual return to the
23 Department shall also disclose the cost of goods sold by the
24 taxpayer retailer during the year covered by such return,
25 opening and closing inventories of such goods for such year,
26 cost costs of goods used from stock or taken from stock and
27 given away by the taxpayer retailer during such year, payroll
28 information of the taxpayer's retailer's business during such
29 year and any additional reasonable information which the
30 Department deems would be helpful in determining the accuracy
31 of the monthly, quarterly or annual returns filed by such
32 taxpayer retailer as provided for in Sections 50-5 through
33 50-140 this Section.
-316- LRB9000671KDdvA
1 (b) If the annual information return required by this
2 Section is not filed when and as required, the taxpayer shall
3 be liable as follows:
4 (i) Until January 1, 1994, the taxpayer shall be
5 liable for a penalty equal to 1/6 of 1% of the tax due
6 from such taxpayer under this Code Act during the period
7 to be covered by the annual return for each month or
8 fraction of a month until such return is filed as
9 required, the penalty to be assessed and collected in the
10 same manner as any other penalty provided for in this
11 Code Act.
12 (ii) On and after January 1, 1994, the taxpayer
13 shall be liable for a penalty as described in Section 3-4
14 of the Uniform Penalty and Interest Act.
15 (c) The chief executive officer, proprietor, owner or
16 highest ranking manager shall sign the annual return to
17 certify the accuracy of the information contained therein.
18 Any person who willfully signs the annual return containing
19 false or inaccurate information shall be guilty of perjury
20 and punished accordingly. The annual return form prescribed
21 by the Department shall include a warning that the person
22 signing the return may be liable for perjury.
23 (d) The provisions of this Section concerning the filing
24 of an annual information return do not apply to a retailer or
25 serviceman who is not required to file an income tax return
26 with the United States government.
27 As soon as possible after the first day of each month,
28 upon certification of the Department of Revenue, the
29 Comptroller shall order transferred and the Treasurer shall
30 transfer from the General Revenue Fund to the Motor Fuel Tax
31 Fund an amount equal to 1.7% of 80% of the net revenue
32 realized under this Act for the second preceding month;
33 except that this transfer shall not be made for the months
34 February through June, 1992.
-317- LRB9000671KDdvA
1 Net revenue realized for a month shall be the revenue
2 collected by the State pursuant to this Act, less the amount
3 paid out during that month as refunds to taxpayers for
4 overpayment of liability.
5 Section 50-135. Payment by manufacturers, importers, and
6 wholesalers. For greater simplicity of administration,
7 manufacturers, importers and wholesalers whose products are
8 sold at retail in Illinois by numerous retailers or
9 servicemen, and who wish to do so, may assume the
10 responsibility for accounting and paying to the Department
11 all tax accruing under this Code Act with respect to such
12 sales, if the retailers or servicemen who are affected do not
13 make written objection to the Department to this arrangement.
14 t+2
15 Section 50-140. Fair reports.
16 (a) Any person who promotes, organizes, provides retail
17 selling space for concessionaires or other types of sellers
18 at the Illinois State Fair, DuQuoin State Fair, county fairs,
19 local fairs, art shows, flea markets and similar exhibitions
20 or events, including any transient merchant as defined by
21 Section 2 of the Transient Merchant Act of 1987, is required
22 to file a report with the Department providing the name of
23 the merchant's business, the name of the person or persons
24 engaged in merchant's business, the permanent address and
25 Illinois Retailers Occupation Tax Registration Number of the
26 merchant, the dates and location of the event and other
27 reasonable information that the Department may require. The
28 report must be filed not later than the 20th day of the month
29 next following the month during which the event with retail
30 sales was held. Any person who fails to file a report
31 required by this Section commits a business offense and is
32 subject to a fine not to exceed $250.
33 (b) Any person engaged in the business of selling
-318- LRB9000671KDdvA
1 tangible personal property at retail as a concessionaire or
2 other type of seller at the Illinois State Fair, county
3 fairs, art shows, flea markets and similar exhibitions or
4 events, or any transient merchants, as defined by Section 2
5 of the Transient Merchant Act of 1987, may be required to
6 make a daily report of the amount of such sales to the
7 Department and to make a daily payment of the full amount of
8 tax due. The Department shall impose this requirement when
9 it finds that there is a significant risk of loss of revenue
10 to the State at such an exhibition or event. Such a finding
11 shall be based on evidence that a substantial number of
12 concessionaires or other sellers who are not residents of
13 Illinois will be engaging in the business of selling tangible
14 personal property at retail at the exhibition or event, or
15 other evidence of a significant risk of loss of revenue to
16 the State. The Department shall notify concessionaires and
17 other sellers affected by the imposition of this requirement.
18 In the absence of notification by the Department, the
19 concessionaires and other sellers shall file their returns as
20 otherwise required in Sections 50-5 through 50-140 this
21 Section.
22 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
23 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
24 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
25 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
26 (35 ILCS 120/4) (from Ch. 120, par. 443)
27 Section 50-145. Examination and correction of return.
28 The provisions of this Section shall apply to the retailers'
29 occupation tax, the use tax, the service occupation tax, and
30 the service use tax, except that for purposes of the use tax
31 and the service occupation tax, the time limitation
32 provisions shall run from the date when the tax is due rather
33 than from the date when gross receipts are received, and for
-319- LRB9000671KDdvA
1 purposes of the service use tax, the time limitations
2 provisions shall run from the date when gross receipts are
3 received. Sec. 4. As soon as practicable after any return is
4 filed, the Department shall examine such return and shall, if
5 necessary, correct such return according to its best judgment
6 and information. If the correction of a return results in an
7 amount of tax that is understated on the taxpayer's return
8 due to a mathematical error, the Department shall notify the
9 taxpayer that the amount of tax in excess of that shown on
10 the return is due and has been assessed. The term
11 "mathematical error" means arithmetic errors or incorrect
12 computations on the return or supporting schedules. No such
13 notice of additional tax due shall be issued on and after
14 each July 1 and January 1 covering gross receipts received
15 during any month or period of time more than 3 years prior to
16 such July 1 and January 1, respectively. Such notice of
17 additional tax due shall not be considered a notice of tax
18 liability nor shall the taxpayer have any right of protest.
19 In the event that the return is corrected for any reason
20 other than a mathematical error, any return so corrected by
21 the Department shall be prima facie correct and shall be
22 prima facie evidence of the correctness of the amount of tax
23 due, as shown therein. In correcting transaction by
24 transaction reporting returns provided for in Sections 50-5
25 through 50-140 of this Code Section 3 of this Act, it shall
26 be permissible for the Department to show a single corrected
27 return figure for any given period of a calendar month
28 instead of having to correct each transaction by transaction
29 return form individually and having to show a corrected
30 return figure for each of such transaction by transaction
31 return forms. In making a correction of transaction by
32 transaction, monthly or quarterly returns covering a period
33 of 6 months or more, it shall be permissible for the
34 Department to show a single corrected return figure for any
-320- LRB9000671KDdvA
1 given 6-month period.
2 Instead of requiring the person filing such return to
3 file an amended return, the Department may simply notify him
4 of the correction or corrections it has made.
5 Proof of such correction by the Department may be made at
6 any hearing before the Department or in any legal proceeding
7 by a reproduced copy or computer print-out of the
8 Department's record relating thereto in the name of the
9 Department under the certificate of the Director of Revenue.
10 If reproduced copies of the Department's records are offered
11 as proof of such correction, the Director must certify that
12 those copies are true and exact copies of records on file
13 with the Department. If computer print-outs of the
14 Department's records are offered as proof of such correction,
15 the Director must certify that those computer print-outs are
16 true and exact representations of records properly entered
17 into standard electronic computing equipment, in the regular
18 course of the Department's business, at or reasonably near
19 the time of the occurrence of the facts recorded, from
20 trustworthy and reliable information. Such certified
21 reproduced copy or certified computer print-out shall without
22 further proof, be admitted into evidence before the
23 Department or in any legal proceeding and shall be prima
24 facie proof of the correctness of the amount of tax due, as
25 shown therein.
26 If the tax computed upon the basis of the gross receipts
27 as fixed by the Department is greater than the amount of tax
28 due under the return or returns as filed, the Department
29 shall (or if the tax or any part thereof that is admitted to
30 be due by a return or returns, whether filed on time or not,
31 is not paid, the Department may) issue the taxpayer a notice
32 of tax liability for the amount of tax claimed by the
33 Department to be due, together with a penalty in an amount
34 determined in accordance with Section 3-3 of the Uniform
-321- LRB9000671KDdvA
1 Penalty and Interest Act. Provided, that if the incorrectness
2 of any return or returns as determined by the Department is
3 due to negligence or fraud, the said penalty shall be in an
4 amount determined in accordance with Section 3-5 or Section
5 3-6 of the Uniform Penalty and Interest Act, as the case may
6 be. If the notice of tax liability is not based on a
7 correction of the taxpayer's return or returns, but is based
8 on the taxpayer's failure to pay all or a part of the tax
9 admitted by his return or returns (whether filed on time or
10 not) to be due, such notice of tax liability shall be prima
11 facie correct and shall be prima facie evidence of the
12 correctness of the amount of tax due, as shown therein.
13 Proof of such notice of tax liability by the Department
14 may be made at any hearing before the Department or in any
15 legal proceeding by a reproduced copy of the Department's
16 record relating thereto in the name of the Department under
17 the certificate of the Director of Revenue. Such reproduced
18 copy shall without further proof, be admitted into evidence
19 before the Department or in any legal proceeding and shall be
20 prima facie proof of the correctness of the amount of tax
21 due, as shown therein.
22 If the person filing any return dies or becomes a person
23 under legal disability at any time before the Department
24 issues its notice of tax liability, such notice shall be
25 issued to the administrator, executor or other legal
26 representative, as such, of such person.
27 Except in case of a fraudulent return, or in the case of
28 an amended return (where a notice of tax liability may be
29 issued on or after each January 1 and July 1 for an amended
30 return filed not more than 3 years prior to such January 1 or
31 July 1, respectively), no notice of tax liability shall be
32 issued on and after each January 1 and July 1 covering gross
33 receipts received during any month or period of time more
34 than 3 years prior to such January 1 and July 1,
-322- LRB9000671KDdvA
1 respectively. If, before the expiration of the time
2 prescribed in this Section for the issuance of a notice of
3 tax liability, both the Department and the taxpayer have
4 consented in writing to its issuance after such time, such
5 notice may be issued at any time prior to the expiration of
6 the period agreed upon. The period so agreed upon may be
7 extended by subsequent agreements in writing made before the
8 expiration of the period previously agreed upon. The
9 foregoing limitations upon the issuance of a notice of tax
10 liability shall not apply to the issuance of a notice of tax
11 liability with respect to any period of time prior thereto in
12 cases where the Department has, within the period of
13 limitation then provided, notified the person making the
14 return of a notice of tax liability even though such return,
15 with which the tax that was shown by such return to be due
16 was paid when the return was filed, had not been corrected by
17 the Department in the manner required herein prior to the
18 issuance of such notice, but in no case shall the amount of
19 any such notice of tax liability for any period otherwise
20 barred by this Code Act exceed for such period the amount
21 shown in the notice of tax liability theretofore issued.
22 If, when a tax or penalty under this Code Act becomes due
23 and payable, the person alleged to be liable therefor is out
24 of the State, the notice of tax liability may be issued
25 within the times herein limited after his coming into or
26 return to the State; and if, after the tax or penalty under
27 this Code Act becomes due and payable, the person alleged to
28 be liable therefor departs from and remains out of the State,
29 the time of his or her absence is no part of the time limited
30 for the issuance of the notice of tax liability; but the
31 foregoing provisions concerning absence from the State shall
32 not apply to any case in which, at the time when a tax or
33 penalty becomes due under this Code Act, the person allegedly
34 liable therefor is not a resident of this State.
-323- LRB9000671KDdvA
1 The time limitation period on the Department's right to
2 issue a notice of tax liability shall not run during any
3 period of time in which the order of any court has the effect
4 of enjoining or restraining the Department from issuing the
5 notice of tax liability.
6 If such person or legal representative shall within 60
7 days after such notice of tax liability file a protest to
8 said notice of tax liability and request a hearing thereon,
9 the Department shall give notice to such person or legal
10 representative of the time and place fixed for such hearing
11 and shall hold a hearing in conformity with the provisions of
12 this Code Act, and pursuant thereto shall issue to such
13 person or legal representative a final assessment for the
14 amount found to be due as a result of such hearing.
15 If a protest to the notice of tax liability and a request
16 for a hearing thereon is not filed within 60 days after such
17 notice, such notice of tax liability shall become final
18 without the necessity of a final assessment being issued and
19 shall be deemed to be a final assessment.
20 After the issuance of a final assessment, or a notice of
21 tax liability which becomes final without the necessity of
22 actually issuing a final assessment as hereinbefore provided,
23 the Department, at any time before such assessment is reduced
24 to judgment, may (subject to rules of the Department) grant a
25 rehearing (or grant departmental review and hold an original
26 hearing if no previous hearing in the matter has been held)
27 upon the application of the person aggrieved. Pursuant to
28 such hearing or rehearing, the Department shall issue a
29 revised final assessment to such person or his legal
30 representative for the amount found to be due as a result of
31 such hearing or rehearing.
32 (Source: P.A. 89-379, eff. 1-1-96.)
33 (35 ILCS 120/5) (from Ch. 120, par. 444)
-324- LRB9000671KDdvA
1 Section 50-150. Failure to make return.
2 The provisions of this Section shall apply to the
3 retailers' occupation tax, the use tax, the service
4 occupation tax, and the service use tax, except that for
5 purposes of the use tax, the service occupation tax, and the
6 service use tax, the time limitation provisions on the
7 issuance of notices of tax liability shall run from the date
8 when the tax is due rather than from the date when gross
9 receipts are received, and for purposes of the use tax and
10 the service use tax, in the case of a failure to file a
11 return required by this Code, no notice of tax liability
12 shall be issued on and after each July 1 and January 1
13 covering tax due with that return during any month or period
14 more than 6 years before that July 1 or January 1,
15 respectively. Sec. 5. In case any person engaged in the
16 business of selling tangible personal property at retail
17 fails to file a return when and as herein required, but
18 thereafter, prior to the Department's issuance of a notice of
19 tax liability under this Section, files a return and pays the
20 tax, he shall also pay a penalty in an amount determined in
21 accordance with Section 3-3 of the Uniform Penalty and
22 Interest Act.
23 In case any person engaged in the business of selling
24 tangible personal property at retail files the return at the
25 time required by this Code Act but fails to pay the tax, or
26 any part thereof, when due, a penalty in an amount determined
27 in accordance with Section 3-3 of the Uniform Penalty and
28 Interest Act shall be added thereto.
29 In case any person engaged in the business of selling
30 tangible personal property at retail fails to file a return
31 when and as herein required, but thereafter, prior to the
32 Department's issuance of a notice of tax liability under this
33 Section, files a return but fails to pay the entire tax, a
34 penalty in an amount determined in accordance with Section
-325- LRB9000671KDdvA
1 3-3 of the Uniform Penalty and Interest Act shall be added
2 thereto.
3 In case any person engaged in the business of selling
4 tangible personal property at retail fails to file a return,
5 the Department shall determine the amount of tax due from him
6 according to its best judgment and information, which amount
7 so fixed by the Department shall be prima facie correct and
8 shall be prima facie evidence of the correctness of the
9 amount of tax due, as shown in such determination. In making
10 any such determination of tax due, it shall be permissible
11 for the Department to show a figure that represents the tax
12 due for any given period of 6 months instead of showing the
13 amount of tax due for each month separately. Proof of such
14 determination by the Department may be made at any hearing
15 before the Department or in any legal proceeding by a
16 reproduced copy or computer print-out of the Department's
17 record relating thereto in the name of the Department under
18 the certificate of the Director of Revenue. If reproduced
19 copies of the Department's records are offered as proof of
20 such determination, the Director must certify that those
21 copies are true and exact copies of records on file with the
22 Department. If computer print-outs of the Department's
23 records are offered as proof of such determination, the
24 Director must certify that those computer print-outs are true
25 and exact representations of records properly entered into
26 standard electronic computing equipment, in the regular
27 course of the Department's business, at or reasonably near
28 the time of the occurrence of the facts recorded, from
29 trustworthy and reliable information. Such certified
30 reproduced copy or certified computer print-out shall,
31 without further proof, be admitted into evidence before the
32 Department or in any legal proceeding and shall be prima
33 facie proof of the correctness of the amount of tax due, as
34 shown therein. The Department shall issue the taxpayer a
-326- LRB9000671KDdvA
1 notice of tax liability for the amount of tax claimed by the
2 Department to be due, together with a penalty of 30% thereof.
3 However, where the failure to file any tax return
4 required under this Code Act on the date prescribed therefor
5 (including any extensions thereof), is shown to be
6 unintentional and nonfraudulent and has not occurred in the 2
7 years immediately preceding the failure to file on the
8 prescribed date or is due to other reasonable cause the
9 penalties imposed by this Code Act shall not apply.
10 If such person or the legal representative of such person
11 files, within 60 days after such notice, a protest to such
12 notice of tax liability and requests a hearing thereon, the
13 Department shall give notice to such person or the legal
14 representative of such person of the time and place fixed for
15 such hearing, and shall hold a hearing in conformity with the
16 provisions of this Code Act, and pursuant thereto shall issue
17 a final assessment to such person or to the legal
18 representative of such person for the amount found to be due
19 as a result of such hearing.
20 If a protest to the notice of tax liability and a request
21 for a hearing thereon is not filed within 60 days after such
22 notice, such notice of tax liability shall become final
23 without the necessity of a final assessment being issued and
24 shall be deemed to be a final assessment.
25 After the issuance of a final assessment, or a notice of
26 tax liability which becomes final without the necessity of
27 actually issuing a final assessment as hereinbefore provided,
28 the Department, at any time before such assessment is reduced
29 to judgment, may (subject to rules of the Department) grant a
30 rehearing (or grant departmental review and hold an original
31 hearing if no previous hearing in the matter has been held)
32 upon the application of the person aggrieved. Pursuant to
33 such hearing or rehearing, the Department shall issue a
34 revised final assessment to such person or his legal
-327- LRB9000671KDdvA
1 representative for the amount found to be due as a result of
2 such hearing or rehearing.
3 Except in case of failure to file a return, or with the
4 consent of the person to whom the notice of tax liability is
5 to be issued, no notice of tax liability shall be issued on
6 and after each July 1 and January 1 covering gross receipts
7 received during any month or period of time more than 3 years
8 prior to such July 1 and January 1, respectively, except that
9 if a return is not filed at the required time, a notice of
10 tax liability may be issued not later than 3 years after the
11 time the return is filed. The foregoing limitations upon the
12 issuance of a notice of tax liability shall not apply to the
13 issuance of any such notice with respect to any period of
14 time prior thereto in cases where the Department has, within
15 the period of limitation then provided, notified a person of
16 the amount of tax computed even though the Department had not
17 determined the amount of tax due from such person in the
18 manner required herein prior to the issuance of such notice,
19 but in no case shall the amount of any such notice of tax
20 liability for any period otherwise barred by this Code Act
21 exceed for such period the amount shown in the notice
22 theretofore issued.
23 If, when a tax or penalty under this Code Act becomes due
24 and payable, the person alleged to be liable therefor is out
25 of the State, the notice of tax liability may be issued
26 within the times herein limited after his or her coming into
27 or return to the State; and if, after the tax or penalty
28 under this Code Act becomes due and payable, the person
29 alleged to be liable therefor departs from and remains out of
30 the State, the time of his or her absence is no part of the
31 time limited for the issuance of the notice of tax liability;
32 but the foregoing provisions concerning absence from the
33 State shall not apply to any case in which, at the time when
34 a tax or penalty becomes due under this Code Act, the person
-328- LRB9000671KDdvA
1 allegedly liable therefor is not a resident of this State.
2 The time limitation period on the Department's right to
3 issue a notice of tax liability shall not run during any
4 period of time in which the order of any court has the effect
5 of enjoining or restraining the Department from issuing the
6 notice of tax liability.
7 In case of failure to pay the tax, or any portion
8 thereof, or any penalty provided for in this Code Act, or
9 interest, when due, the Department may bring suit to recover
10 the amount of such tax, or portion thereof, or penalty or
11 interest; or, if the taxpayer has died or become a person
12 under legal disability, may file a claim therefor against his
13 estate; provided that no such suit with respect to any tax,
14 or portion thereof, or penalty, or interest shall be
15 instituted more than 2 years after the date any proceedings
16 in court for review thereof have terminated or the time for
17 the taking thereof has expired without such proceedings being
18 instituted, except with the consent of the person from whom
19 such tax or penalty or interest is due; nor, except with such
20 consent, shall such suit be instituted more than 2 years
21 after the date any return is filed with the Department in
22 cases where the return constitutes the basis for the suit for
23 unpaid tax, or portion thereof, or penalty provided for in
24 this Code Act, or interest: provided that the time limitation
25 period on the Department's right to bring any such suit shall
26 not run during any period of time in which the order of any
27 court has the effect of enjoining or restraining the
28 Department from bringing such suit.
29 After the expiration of the period within which the
30 person assessed may file an action for judicial review under
31 the Administrative Review Law without such an action being
32 filed, a certified copy of the final assessment or revised
33 final assessment of the Department may be filed with the
34 Circuit Court of the county in which the taxpayer has his
-329- LRB9000671KDdvA
1 principal place of business, or of Sangamon County in those
2 cases in which the taxpayer does not have his principal place
3 of business in this State. The certified copy of the final
4 assessment or revised final assessment shall be accompanied
5 by a certification which recites facts that are sufficient to
6 show that the Department complied with the jurisdictional
7 requirements of the Code Act in arriving at its final
8 assessment or its revised final assessment and that the
9 taxpayer had his opportunity for an administrative hearing
10 and for judicial review, whether he availed himself or
11 herself of either or both of these opportunities or not. If
12 the court is satisfied that the Department complied with the
13 jurisdictional requirements of the Code Act in arriving at
14 its final assessment or its revised final assessment and that
15 the taxpayer had his opportunity for an administrative
16 hearing and for judicial review, whether he availed himself
17 of either or both of these opportunities or not, the court
18 shall render judgment in favor of the Department and against
19 the taxpayer for the amount shown to be due by the final
20 assessment or the revised final assessment, plus any interest
21 which may be due, and such judgment shall be entered in the
22 judgment docket of the court. Such judgment shall bear the
23 rate of interest as set by the Uniform Penalty and Interest
24 Act, but otherwise shall have the same effect as other
25 judgments. The judgment may be enforced, and all laws
26 applicable to sales for the enforcement of a judgment shall
27 be applicable to sales made under such judgments. The
28 Department shall file the certified copy of its assessment,
29 as herein provided, with the Circuit Court within 2 years
30 after such assessment becomes final except when the taxpayer
31 consents in writing to an extension of such filing period,
32 and except that the time limitation period on the
33 Department's right to file the certified copy of its
34 assessment with the Circuit Court shall not run during any
-330- LRB9000671KDdvA
1 period of time in which the order of any court has the effect
2 of enjoining or restraining the Department from filing such
3 certified copy of its assessment with the Circuit Court.
4 If, when the cause of action for a proceeding in court
5 accrues against a person, he or she is out of the State, the
6 action may be commenced within the times herein limited,
7 after his or her coming into or return to the State; and if,
8 after the cause of action accrues, he or she departs from and
9 remains out of the State, the time of his or her absence is
10 no part of the time limited for the commencement of the
11 action; but the foregoing provisions concerning absence from
12 the State shall not apply to any case in which, at the time
13 the cause of action accrues, the party against whom the cause
14 of action accrues is not a resident of this State. The time
15 within which a court action is to be commenced by the
16 Department hereunder shall not run from the date the taxpayer
17 files a petition in bankruptcy under the Federal Bankruptcy
18 Act until 30 days after notice of termination or expiration
19 of the automatic stay imposed by the Federal Bankruptcy Act.
20 No claim shall be filed against the estate of any
21 deceased person or any person under legal disability for any
22 tax or penalty or part of either, or interest, except in the
23 manner prescribed and within the time limited by the Probate
24 Act of 1975, as amended.
25 The collection of tax or penalty or interest by any means
26 provided for herein shall not be a bar to any prosecution
27 under this Code Act.
28 In addition to any penalty provided for in this Code Act,
29 any amount of tax which is not paid when due shall bear
30 interest at the rate and in the manner specified in Sections
31 3-2 and 3-9 of the Uniform Penalty and Interest Act from the
32 date when such tax becomes past due until such tax is paid or
33 a judgment therefor is obtained by the Department. If the
34 time for making or completing an audit of a taxpayer's books
-331- LRB9000671KDdvA
1 and records is extended with the taxpayer's consent, at the
2 request of and for the convenience of the Department, beyond
3 the date on which the statute of limitations upon the
4 issuance of a notice of tax liability by the Department
5 otherwise would run, no interest shall accrue during the
6 period of such extension or until a Notice of Tax Liability
7 is issued, whichever occurs first.
8 In addition to any other remedy provided by this Code
9 Act, and regardless of whether the Department is making or
10 intends to make use of such other remedy, where a corporation
11 or limited liability company registered under this Code Act
12 violates the provisions of this Code Act or of any rule or
13 regulation promulgated thereunder, the Department may give
14 notice to the Attorney General of the identity of such a
15 corporation or limited liability company and of the
16 violations committed by such a corporation or limited
17 liability company, for such action as is not already provided
18 for by this Code Act and as the Attorney General may deem
19 appropriate.
20 If the Department determines that an amount of tax or
21 penalty or interest was incorrectly assessed, whether as the
22 result of a mistake of fact or an error of law, the
23 Department shall waive the amount of tax or penalty or
24 interest that accrued due to the incorrect assessment.
25 (Source: P.A. 87-193; 87-205; 87-895; 88-480.)
26 (35 ILCS 120/5a) (from Ch. 120, par. 444a)
27 Section 65-5. Tax lien. Sec. 5a. The Department shall
28 have a lien for the taxes tax herein imposed or any portion
29 thereof, or for any penalty provided for in this Code Act, or
30 for any amount of interest which may be due as provided for
31 in Section 50-150 5 of this Code Act, upon all the real and
32 personal property of any person to whom a final assessment or
33 revised final assessment has been issued as provided in this
-332- LRB9000671KDdvA
1 Code Act, or whenever a return is filed without payment of
2 the tax or penalty shown therein to be due, including all
3 such property of such persons acquired after receipt of such
4 assessment or filing of such return.
5 However, where the lien arises because of the issuance of
6 a final assessment or revised final assessment by the
7 Department, such lien shall not attach and the notice
8 hereinafter referred to in this Section shall not be filed
9 until all proceedings in court for review of such final
10 assessment or revised final assessment have terminated or the
11 time for the taking thereof has expired without such
12 proceedings being instituted.
13 Upon the granting of a rehearing or departmental review
14 pursuant to Section 50-145 4 or Section 50-150 5 of this Code
15 Act after a lien has attached, such lien shall remain in full
16 force except to the extent to which the final assessment may
17 be reduced by a revised final assessment following such
18 rehearing or review.
19 The lien created by the issuance of a final assessment
20 shall terminate unless a notice of lien is filed, as provided
21 in Section 65-10 5b hereof, within 3 years from the date all
22 proceedings in court for the review of such final assessment
23 have terminated or the time for the taking thereof has
24 expired without such proceedings being instituted, or (in the
25 case of a revised final assessment issued pursuant to a
26 rehearing or departmental review) within 3 years from the
27 date all proceedings in court for the review of such revised
28 final assessment have terminated or the time for the taking
29 thereof has expired without such proceedings being
30 instituted; and where the lien results from the filing of a
31 return without payment of the tax or penalty shown therein to
32 be due, the lien shall terminate unless a notice of lien is
33 filed, as provided in Section 65-10 5b hereof, within 3 years
34 from the date when such return is filed with the Department:
-333- LRB9000671KDdvA
1 provided that the time limitation period on the Department's
2 right to file a notice of lien shall not run during any
3 period of time in which the order of any court has the effect
4 of enjoining or restraining the Department from filing such
5 notice of lien.
6 If the Department finds that a taxpayer is about to
7 depart from the State, or to conceal himself or his property,
8 or to do any other act tending to prejudice or to render
9 wholly or partly ineffectual proceedings to collect such tax
10 unless such proceedings are brought without delay, or if the
11 Department finds that the collection of the amount due from
12 any taxpayer will be jeopardized by delay, the Department
13 shall give the taxpayer notice of such findings and shall
14 make demand for immediate return and payment of such tax,
15 whereupon such tax shall become immediately due and payable.
16 If the taxpayer, within 5 days after such notice (or within
17 such extension of time as the Department may grant), does not
18 comply with such notice or show to the Department that the
19 findings in such notice are erroneous, the Department may
20 file a notice of jeopardy assessment lien in the office of
21 the recorder of the county in which any property of the
22 taxpayer may be located and shall notify the taxpayer of such
23 filing. Such jeopardy assessment lien shall have the same
24 scope and effect as the statutory lien hereinbefore provided
25 for in this Section.
26 If the taxpayer believes that he does not owe some or all
27 of the tax for which the jeopardy assessment lien against him
28 has been filed, or that no jeopardy to the revenue in fact
29 exists, he may protest within 20 days after being notified by
30 the Department of the filing of such jeopardy assessment lien
31 and request a hearing, whereupon the Department shall hold a
32 hearing in conformity with the provisions of this Code Act
33 and, pursuant thereto, shall notify the taxpayer of its
34 findings as to whether or not such jeopardy assessment lien
-334- LRB9000671KDdvA
1 will be released. If not, and if the taxpayer is aggrieved by
2 this decision, he may file an action for judicial review of
3 such final determination of the Department in accordance with
4 Section 77-5 12 of this Code Act and the Administrative
5 Review Law.
6 If, pursuant to such hearing (or after an independent
7 determination of the facts by the Department without a
8 hearing), the Department determines that some or all of the
9 tax covered by the jeopardy assessment lien is not owed by
10 the taxpayer, or that no jeopardy to the revenue exists, or
11 if on judicial review the final judgment of the court is that
12 the taxpayer does not owe some or all of the tax covered by
13 the jeopardy assessment lien against him, or that no jeopardy
14 to the revenue exists, the Department shall release its
15 jeopardy assessment lien to the extent of such finding of
16 nonliability for the tax, or to the extent of such finding of
17 no jeopardy to the revenue.
18 The Department shall also release its jeopardy assessment
19 lien against the taxpayer whenever the tax and penalty
20 covered by such lien, plus any interest which may be due, are
21 paid.
22 Nothing in this Section shall be construed to give the
23 Department a preference over the rights of any bona fide
24 purchaser, holder of a security interest, mechanics
25 lienholder, mortgagee, or judgment lien creditor arising
26 prior to the filing of a regular notice of lien or a notice
27 of jeopardy assessment lien in the office of the recorder in
28 the county in which the property subject to the lien is
29 located: provided, however, that the word "bona fide", as
30 used in this Section shall not include any mortgage of real
31 or personal property or any other credit transaction that
32 results in the mortgagee or the holder of the security acting
33 as trustee for unsecured creditors of the taxpayer mentioned
34 in the notice of lien who executed such chattel or real
-335- LRB9000671KDdvA
1 property mortgage or the document evidencing such credit
2 transaction. Such lien shall be inferior to the lien of
3 general taxes, special assessments and special taxes
4 heretofore or hereafter levied by any political subdivision
5 of this State.
6 In case title to land to be affected by the notice of
7 lien or notice of jeopardy assessment lien is registered
8 under the provisions of the Registered Titles (Torrens) Act
9 "An Act concerning land titles", approved May 1, 1897, as
10 amended, such notice shall be filed in the office of the
11 Registrar of Titles of the county within which the property
12 subject to the lien is situated and shall be entered upon the
13 register of titles as a memorial or charge upon each folium
14 of the register of titles affected by such notice, and the
15 Department shall not have a preference over the rights of any
16 bona fide purchaser, mortgagee, judgment creditor or other
17 lien holder arising prior to the registration of such notice:
18 Provided, however, that the word "bona fide" shall not
19 include any mortgage of real or personal property or any
20 other credit transaction that results in the mortgagee or the
21 holder of the security acting as trustee for unsecured
22 creditors of the taxpayer mentioned in the notice of lien who
23 executed such chattel or real property mortgage or the
24 document evidencing such credit transaction.
25 Such regular lien or jeopardy assessment lien shall not
26 be effective against any purchaser with respect to any item
27 in a retailer's stock in trade purchased from the retailer in
28 the usual course of such retailer's business.
29 (Source: P.A. 86-905.)
30 (35 ILCS 120/5b) (from Ch. 120, par. 444b)
31 Section 65-10. Records of State tax liens. Sec. 5b. The
32 recorder of each county shall procure a file labeled "State
33 Tax Lien Notices" and an index book labeled "State Tax Lien
-336- LRB9000671KDdvA
1 Index". When notice of any lien or jeopardy assessment lien
2 is presented to him for filing, he shall file it in numerical
3 order in the file and shall enter it alphabetically in the
4 index. The entry shall show the name and last known business
5 address of the person named in the notice, the serial number
6 of the notice, the date and hour of filing, whether it is a
7 regular lien or a jeopardy assessment lien, and the amount of
8 tax and penalty due and unpaid, plus the amount of interest
9 due under Section 50-150 5 of this Code Act at the time when
10 the notice of lien or jeopardy assessment lien is filed.
11 No recorder or registrar of titles of any county shall
12 require that the Department pay any costs or fees in
13 connection with recordation of any notice or other document
14 filed by the Department under this Code Act at the time such
15 notice or other document is presented for recordation. The
16 recorder or registrar of each county, in order to receive
17 payment for fees or costs incurred by the Department, shall
18 present the Department with monthly statements indicating the
19 amount of fees and costs incurred by the Department and for
20 which no payment has been received.
21 A notice of lien may be filed after the issuance of a
22 revised final assessment pursuant to a rehearing or
23 departmental review under Section 50-145 4 or Section 50-150
24 5 of this Code Act.
25 When the lien obtained pursuant to this Code Act has been
26 satisfied, the Department shall issue a release to the
27 person, or his agent, against whom the lien was obtained and
28 such release shall contain in legible letters a statement as
29 follows:
30 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
31 BE FILED WITH THE RECORDER OR THE REGISTRAR
32 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
33 When a certificate of complete or partial release of lien
34 issued by the Department is presented for filing in the
-337- LRB9000671KDdvA
1 office of the recorder or Registrar of Titles where a notice
2 of lien or notice of jeopardy assessment lien was filed, the
3 recorder, in the case of nonregistered property, shall
4 permanently attach the certificate of release to the notice
5 of lien or notice of jeopardy assessment lien and shall enter
6 the certificate of release and the date in the "State Tax
7 Lien Index" on the line where the notice of lien or notice of
8 jeopardy assessment lien is entered.
9 In the case of registered property, the Registrar of
10 Titles shall file and enter upon each folium of the register
11 of titles affected thereby a memorial of the certificate of
12 release which memorial when so entered shall act as a release
13 pro tanto of any memorial of such notice of lien or notice of
14 jeopardy assessment lien previously filed and registered.
15 (Source: P.A. 84-221.)
16 (35 ILCS 120/5c) (from Ch. 120, par. 444c)
17 Section 65-15. Tax liens; certificate of complete or
18 partial release. Sec. 5c. The Department shall issue a
19 certificate of complete or partial release of the lien:
20 (a) to the extent that the fair market value of any
21 property subject to the lien exceeds the amount of the lien
22 plus the amount of all prior liens upon such property;
23 (b) to the extent that such lien shall become
24 unenforceable;
25 (c) to the extent that the amount of such lien is paid
26 by the retailer whose property is subject to such lien,
27 together with any interest which may become due under Section
28 50-150 5 of this Code Act between the date when the notice of
29 lien is filed and the date when the amount of such lien is
30 paid;
31 (d) to the extent that there is furnished to the
32 Department on a form to be approved and with a surety or
33 sureties satisfactory to the Department a bond that is
-338- LRB9000671KDdvA
1 conditioned upon the payment of the amount of such lien,
2 together with any interest which may become due under Section
3 50-150 5 of this Code Act after the notice of lien is filed,
4 but before the amount thereof is fully paid;
5 (e) to the extent and under the circumstances specified
6 in Section 65-5 5a of this Code Act in the case of jeopardy
7 assessment liens;
8 (f) to the extent to which an assessment is reduced
9 pursuant to a rehearing or departmental review under Section
10 50-145 4 or Section 50-150 5 of this Code Act.
11 A certificate of complete or partial release of any lien
12 shall be held conclusive that the lien upon the property
13 covered by the certificate is extinguished to the extent
14 indicated by such certificate.
15 (Source: Laws 1965, p. 531.)
16 (35 ILCS 120/5d) (from Ch. 120, par. 444d)
17 Section 35-75. Exemption from bonding; Department of
18 Revenue. Sec. 5d. The Department is not required to furnish
19 any bond nor to make a deposit for or pay any costs or fees
20 of any court or officer thereof in any judicial proceedings
21 under this Code Act. Whenever a certified copy of a judgment
22 or order for attachment, issued from any court for the
23 enforcement or collection of any liability created by this
24 Code Act, is levied by any sheriff or coroner upon any
25 personal property, and such property is claimed by any person
26 other than the judgment debtor or the defendant in the
27 attachment, or is claimed by the judgment debtor or defendant
28 in the attachment as exempt from enforcement of a judgment
29 thereon by virtue of the exemption laws of this State, then
30 the person making such claim shall give notice in writing of
31 his or her claim and of his or her intention to prosecute the
32 claim, to the sheriff or coroner within 10 days after the
33 making of the levy. On receiving such notice, the sheriff or
-339- LRB9000671KDdvA
1 coroner shall proceed in accordance with Part 2 of Article
2 XII of the Code of Civil Procedure, as amended. The giving of
3 such notice within the 10 day period is a condition precedent
4 to any judicial action against the sheriff or coroner for
5 wrongfully levying, seizing or selling the property and any
6 such person who fails to give such notice within that time is
7 barred from bringing any judicial action against such sheriff
8 or coroner for injury or damages to or conversion of the
9 property.
10 (Source: P.A. 83-1362.)
11 (35 ILCS 120/5e) (from Ch. 120, par. 444e)
12 Section 65-20. Tax liens on realty; enforcement. Sec.
13 5e.In addition to any other remedy provided for by the laws
14 of this State, and provided that no hearing or proceedings
15 for review provided by this Code Act shall be pending, and
16 the time for the taking thereof shall have expired, the
17 Department may foreclose in the circuit court any lien on
18 real property for any tax or penalty imposed by this Code Act
19 to the same extent and in the same manner as in the
20 enforcement of other liens. Provided that such proceedings to
21 foreclose shall not be instituted more than 20 years after
22 the filing of the notice of lien under the provisions of
23 Section 65-10 5b hereof, except that the time limitation
24 period on the Department's right to commence any such
25 foreclosure proceeding shall not run during any period of
26 time in which a court order has the effect of enjoining or
27 restraining the Department from commencing such foreclosure
28 proceeding. The process, practice and procedure for such
29 foreclosure shall be the same as provided in the Civil
30 Practice Law, as amended. The provisions of this amendatory
31 Act of 1984 shall apply to any lien which has not expired
32 before September 13, 1984 the effective date of this
33 amendatory Act of 1984.
-340- LRB9000671KDdvA
1 (Source: P.A. 83-1416.)
2 (35 ILCS 120/5f) (from Ch. 120, par. 444f)
3 Section 65-25. Demand for payment of tax. Sec. 5f. In
4 addition to any other remedy provided for by the laws of this
5 State, if the taxes tax imposed by this Code are Act is not
6 paid within the time required by this Code Act, the
7 Department, or some person designated by it, may cause a
8 demand to be made on the taxpayer for the payment of the tax.
9 If the tax remains unpaid for 10 days after demand has been
10 made and no proceedings have been taken for review, the
11 Department may issue a warrant directed to the sheriff of any
12 county of the State or to any State officer authorized to
13 serve process, commanding the sheriff or other officer to
14 levy upon property and rights to property (whether real or
15 personal, tangible or intangible) of the taxpayer, without
16 exemption, found within his or her jurisdiction, for the
17 payment of the amount of unpaid tax with the added penalties,
18 interest and the cost of executing the warrant. The term
19 "levy" includes the power of distraint and seizure by any
20 means. In any case in which the warrant to levy has been
21 issued, the sheriff or other person to whom the warrant was
22 directed may seize and sell such property or rights to
23 property. Such warrant shall be returned to the Department
24 together with the money collected by virtue of the warrant
25 within the time specified in the warrant, which may not be
26 less than 20 nor more than 90 days from the date of the
27 warrant. The sheriff or other officer to whom such warrant is
28 directed shall proceed in the same manner as is prescribed by
29 law for proceeding against property to enforce judgments
30 which are entered by a circuit court of this State, and is
31 entitled to the same fees for his or her services in
32 executing the warrant, to be collected in the same manner.
33 The Department, or some officer, employee or agent designated
-341- LRB9000671KDdvA
1 by it, may bid for and purchase any such property sold.
2 No proceedings for a levy under this Section may be
3 commenced more than 20 years after the latest date for filing
4 of the notice of lien under Section 65-10 5b of this Code
5 Act, without regard to whether such notice was actually
6 filed.
7 Any officer or employee of the Department designated in
8 writing by the Director is authorized to serve process under
9 this Section to levy upon accounts or other intangible assets
10 of a taxpayer held by a financial organization, as defined by
11 Section 1501 of the Illinois Income Tax Act. In addition to
12 any other provisions of this Section, any officer or employee
13 of the Department designated in writing by the Director may
14 levy upon the following property and rights to property
15 belonging to a taxpayer: contractual payments, accounts and
16 notes receivable and other evidences of debt, and interest on
17 bonds, by serving a notice of levy on the person making such
18 payment. Levy shall not be made until the Department has
19 caused a demand to be made on the taxpayer in the manner
20 provided above. In addition to any other provisions of this
21 Section, any officer or employee of the Department designated
22 in writing by the Director, may levy upon the salary, wages,
23 commissions and bonuses of any employee, including officers,
24 employees, or elected officials of the United States as
25 authorized by Section 5520a of the Government Organization
26 and Employees Act (5 U.S.C. 5520a), but not upon the salary
27 or wages of officers, employees, or elected officials of any
28 state other than this State, by serving a notice of levy on
29 the employer. Levy shall not be made until the Department
30 has caused a demand to be made on the employee in the manner
31 provided above. The provisions of Section 12-803 of the Code
32 of Civil Procedure relating to maximum compensation subject
33 to collection under wage deduction orders shall apply to all
34 levies made upon compensation under this Section. To the
-342- LRB9000671KDdvA
1 extent of the amount due on the levy, the employer or other
2 person making payments to the taxpayer shall hold any
3 non-exempt wages or other payments due or which subsequently
4 come due. The levy or balance due thereon is a lien on wages
5 or other payments due at the time of the service of the
6 notice of levy, and such lien shall continue as to subsequent
7 earnings and other payments until the total amount due upon
8 the levy is paid, except that such lien on subsequent
9 earnings or other payments shall terminate sooner if the
10 employment relationship is terminated or if the notice of
11 levy is rescinded or modified. The employer or other person
12 making payments to the taxpayer shall file, on or before the
13 return dates stated in the notice of levy (which shall not be
14 more often than bimonthly) a written answer under oath to
15 interrogatories, setting forth the amount due as wages or
16 other payments to the taxpayer for the payment periods ending
17 immediately prior to the appropriate return date. A lien
18 obtained hereunder shall have priority over any subsequent
19 lien obtained pursuant to Section 12-808 of the Code of Civil
20 Procedure, except that liens for the support of a spouse or
21 dependent children shall have priority over all liens
22 obtained hereunder.
23 In any case where property or rights to property have
24 been seized by an officer of the Illinois Department of Law
25 Enforcement, or successor agency thereto, under the authority
26 of a warrant to levy issued by the Department of Revenue, the
27 Department of Revenue may take possession of and may sell
28 such property or rights to property and the Department of
29 Revenue may contract with third persons to conduct sales of
30 such property or rights to the property. In the conduct of
31 such sales, the Department of Revenue shall proceed in the
32 same manner as is prescribed by law for proceeding against
33 property to enforce judgments which are entered by a circuit
34 court of this State. If, in the Department's opinion, no
-343- LRB9000671KDdvA
1 offer to purchase at such sale is acceptable and the State's
2 interest would be better served by retaining the property for
3 sale at a later date, then the Department may decline to
4 accept any bid and may retain the property for sale at a
5 later date.
6 (Source: P.A. 89-399, eff. 8-20-95.)
7 (35 ILCS 120/5g) (from Ch. 120, par. 444g)
8 Section 65-30. Sale of property on which judgment for
9 tax is inferior; redemption. Sec. 5g. Except as to any sale
10 had by virtue of a judgment of foreclosure in accordance with
11 Article XV of the Code of Civil Procedure, whenever any real
12 estate has been or is sold at a judicial sale or a sale for
13 the enforcement of a judgment and such real estate is then
14 subject to a tax lien or notice of tax lien in favor of the
15 Department, as hereinbefore provided, and which is junior or
16 inferior to the lien so enforced or foreclosed by or through
17 that sale, the right to redeem in any manner under or by
18 virtue of such tax lien or claim for tax lien from such sale
19 or from the lien so foreclosed or enforced terminates at the
20 end of 12 months from the date upon which there is filed for
21 record in the office of the recorder for the county in which
22 the lands so sold are situated, if such lands are
23 unregistered, or in the office of the Registrar of Titles for
24 such county, if such lands are registered, a certified copy
25 of the original or duplicate recorded or registered
26 certificate of such sale, such certified copy being endorsed
27 by the Director of Revenue showing service of a copy of such
28 certificate upon him or her, and upon such service it shall
29 be the duty of such officer to make such endorsement.
30 Service may be by United States registered or certified mail.
31 (Source: P.A. 84-1462.)
32 (35 ILCS 120/5i) (from Ch. 120, par. 444i)
-344- LRB9000671KDdvA
1 Section 90-5. Appointment of Secretary of State for
2 service of process. Any non-resident of this State who
3 accepts the privilege extended by the laws of this State to
4 non-residents of acting as a retailer maintaining a place of
5 business within this State within the meaning of Section
6 5-110 or as a serviceman maintaining a place of business in
7 this State within the meaning of Section 5-130, Sec. 5i. any
8 resident of this State person who incurs tax liability under
9 Article 15 as a seller or Article 25 as a serviceman this
10 Act, and who subsequently removes from this State or conceals
11 his whereabouts, and any person (resident or non-resident)
12 who incurs tax liability under Article 10 as a retailer,
13 under Article 15 or Article 25 as a user in this State, or
14 under Article 20 as a serviceman in this State, and who
15 removes from this State or conceals his whereabouts, shall be
16 deemed thereby to appoint the Secretary of State of Illinois
17 his agent for service of process or notice in any judicial or
18 administrative proceeding under this Code Act. Such process
19 or notice shall be served by the Department on the Secretary
20 of State by leaving, at the office of the Secretary of State
21 at least 15 days before the return day of such process or
22 notice, a true and certified copy thereof, and by sending to
23 the taxpayer by registered or certified mail, postage
24 prepaid, a like and true certified copy, with an endorsement
25 thereon of the service upon said Secretary of State,
26 addressed to such taxpayer at his last known address.
27 Service of process or notice in the manner provided for
28 in this Section, under the circumstances specified in this
29 Section, shall be of the same force and validity as if served
30 upon the taxpayer personally within this State. Proof of such
31 service upon the taxpayer in this State through the Secretary
32 of State as his agent and by mailing to the last known
33 address of the taxpayer may be made in such judicial or
34 administrative proceeding by the affidavit of the Director of
-345- LRB9000671KDdvA
1 Revenue, or by his duly authorized representative who made
2 such service, with a copy of the process or notice that was
3 so served attached to such affidavit.
4 (Source: Laws 1961, p. 1918.)
5 (35 ILCS 120/5j) (from Ch. 120, par. 444j)
6 Section 90-10. Bulk sales. Sec. 5j. If any taxpayer,
7 outside the usual course of his business, sells or transfers
8 the major part of any one or more of (A) the stock of goods
9 which he is engaged in the business of selling, or (B) the
10 furniture or fixtures, (C) the machinery and equipment, or
11 (D) the real property, of any business that is subject to the
12 provisions of this Code Act, the purchaser or transferee of
13 such asset shall, no later than 10 days after the sale or
14 transfer, file a notice of sale or transfer of business
15 assets with the Chicago office of the Department disclosing
16 the name and address of the seller or transferor, the name
17 and address of the purchaser or transferee, the date of the
18 sale or transfer, a copy of the sales contract and financing
19 agreements which shall include a description of the property
20 sold, the amount of the purchase price or a statement of
21 other consideration for the sale or transfer, the terms for
22 payment of the purchase price, and such other information as
23 the Department may reasonably require. If the purchaser or
24 transferee fails to file the above described notice of sale
25 with the Department within the prescribed time, the purchaser
26 or transferee shall be personally liable for the amount owed
27 hereunder by the seller or transferor to the Department up to
28 the amount of the reasonable value of the property acquired
29 by the purchaser or transferee. The seller or transferor
30 shall pay the Department the amount of tax, penalty and
31 interest (if any) due from him under this Code Act up to the
32 date of the payment of tax. The seller or transferor, or the
33 purchaser or transferee, at least 10 days before the date of
-346- LRB9000671KDdvA
1 the sale or transfer, may notify the Department of the
2 intended sale or transfer and request the Department to audit
3 the books and records of the seller or transferor, or to do
4 whatever else may be necessary to determine how much the
5 seller or transferor owes to the Department hereunder up to
6 the date of the sale or transfer. The Department shall take
7 such steps as may be appropriate to comply with such request.
8 Any order issued by the Department pursuant to this
9 Section to withhold from the purchase price shall be issued
10 within 10 days after the Department receives notification of
11 a sale as provided in this Section. The purchaser or
12 transferee shall withhold such portion of the purchase price
13 as may be directed by the Department, but not to exceed a
14 minimum amount varying by type of business, as determined by
15 the Department pursuant to regulations, plus twice the
16 outstanding unpaid liabilities and twice the average
17 liability of preceding filings times the number of unfiled
18 returns, to cover the amount of all tax, penalty and interest
19 due and unpaid by the seller or transferor under this Code
20 Act or, if the payment of money or property is not involved,
21 shall withhold the performance of the condition that
22 constitutes the consideration for the sale or transfer.
23 Within 60 days after issuance of the initial order to
24 withhold, the Department shall provide written notice to the
25 purchaser or transferee of the actual amount of all taxes,
26 penalties and interest then due and whether or not additional
27 amounts may become due as a result of unfiled returns,
28 pending assessments and audits not completed. The purchaser
29 or transferee shall continue to withhold the amount directed
30 to be withheld by the initial order or such lesser amount as
31 is specified by the final withholding order or to withhold
32 the performance of the condition which constitutes the
33 consideration for the sale or transfer until the purchaser
34 or transferee receives from the Department a certificate
-347- LRB9000671KDdvA
1 showing that such tax, penalty and interest have been paid or
2 a certificate from the Department showing that no tax,
3 penalty or interest is due from the seller or transferor
4 under this Code Act.
5 The purchaser or transferee is relieved of any duty to
6 continue to withhold from the purchase price and of any
7 liability for tax, penalty or interest due hereunder from the
8 seller or transferor if the Department fails to notify the
9 purchaser or transferee in the manner provided herein of the
10 amount to be withheld within 10 days after the sale or
11 transfer has been reported to the Department or within 60
12 days after issuance of the initial order to withhold, as the
13 case may be. The Department shall have the right to determine
14 amounts claimed on an estimated basis to allow for non-filed
15 periods, pending assessments and audits not completed,
16 however the purchaser or transferee shall be personally
17 liable only for the actual amount due when determined.
18 If the seller or transferor fails to pay the tax, penalty
19 and interest (if any) due from him hereunder and the
20 Department makes timely claim therefor against the purchaser
21 or transferee as hereinabove provided, then the purchaser or
22 transferee shall pay the amount so withheld from the purchase
23 price to the Department. If the purchaser or transferee fails
24 to comply with the requirements of this Section, the
25 purchaser or transferee shall be personally liable to the
26 Department for the amount owed hereunder by the seller or
27 transferor to the Department up to the amount of the
28 reasonable value of the property acquired by the purchaser or
29 transferee.
30 Any person who shall acquire any property or rights
31 thereto which, at the time of such acquisition, is subject to
32 a valid lien in favor of the Department shall be personally
33 liable to the Department for a sum equal to the amount of
34 taxes secured by such lien but not to exceed the reasonable
-348- LRB9000671KDdvA
1 value of such property acquired by him.
2 (Source: P.A. 86-923; 86-953.)
3 (35 ILCS 120/5k) (from Ch. 120, par. 444k)
4 Section 35-90. Enterprise zones; building materials.
5 Sec. 5k. Each retailer whose place of a business is within a
6 county or municipality which has established an enterprise
7 zone pursuant to the "Illinois Enterprise Zone Act" and who
8 makes a sale of building materials to be incorporated into
9 real estate in such enterprise zone by remodeling,
10 rehabilitation or new construction, may deduct receipts from
11 such sales when calculating the taxes tax imposed by this
12 Code Act. The deduction allowed by this Section for the sale
13 of building materials may be limited, to the extent
14 authorized by ordinance, adopted after February 18, the
15 effective date of this amendatory Act of 1992, by the
16 municipality or county that created the enterprise zone. The
17 corporate authorities of any municipality or county that
18 adopts an ordinance or resolution imposing or changing any
19 limitation on the enterprise zone exemption for building
20 materials shall transmit to the Department of Revenue on or
21 not later than 5 days after publication, as provided by law,
22 a certified copy of the ordinance or resolution imposing or
23 changing those limitations, whereupon the Department of
24 Revenue shall proceed to administer and enforce those
25 limitations effective the first day of the second calendar
26 month next following date of receipt by the Department of the
27 certified ordinance or resolution.
28 (Source: P.A. 87-848.)
29 (35 ILCS 120/5l) (from Ch. 120, par. 444l)
30 Section 30-30. High impact; building materials. Sec. 5l.
31 Beginning January 1, 1995, each retailer who makes a sale of
32 building materials that will be incorporated into a high
-349- LRB9000671KDdvA
1 impact business location as designated by the Department of
2 Commerce and Community Affairs under Section 5.5 of the
3 Illinois Enterprise Zone Act may deduct receipts from such
4 sales when calculating only the 6.25% State rate of taxes tax
5 imposed by this Code Act. Beginning June 30, on the effective
6 date of this amendatory Act of 1995, a retailer may also
7 deduct receipts from such sales when calculating any
8 applicable local taxes. However, until June 30, the effective
9 date of this amendatory Act of 1995, a retailer may file
10 claims for credit or refund to recover the amount of any
11 applicable local tax paid on such sales. No retailer who is
12 eligible for the deduction or credit under Section 35-90 5k
13 of this Code Act for making a sale of building materials to
14 be incorporated into real estate in an enterprise zone by
15 rehabilitation, remodeling or new construction shall be
16 eligible for the deduction or credit authorized under this
17 Section.
18 (Source: P.A. 89-89, eff. 6-30-95.)
19 (35 ILCS 120/6) (from Ch. 120, par. 445)
20 Section 55-5. Erroneous payment; credit or refund;
21 retailers' occupation tax. Sec. 6. Credit memorandum or
22 refund. If it appears, after claim therefor filed with the
23 Department, that an amount of tax or penalty or interest has
24 been paid which was not due under Article 10 this Act,
25 whether as the result of a mistake of fact or an error of
26 law, except as hereinafter provided, then the Department
27 shall issue a credit memorandum or refund to the person who
28 made the erroneous payment or, if that person died or became
29 a person under legal disability, to his or her legal
30 representative, as such. For purposes of this Section, the
31 tax is deemed to be erroneously paid by a retailer when the
32 manufacturer of a motor vehicle sold by the retailer accepts
33 the return of that automobile and refunds to the purchaser
-350- LRB9000671KDdvA
1 the selling price of that vehicle as provided in the New
2 Vehicle Buyer Protection Act. When a motor vehicle is
3 returned for a refund of the purchase price under the New
4 Vehicle Buyer Protection Act, the Department shall issue a
5 credit memorandum or a refund for the amount of tax paid by
6 the retailer under Article 10 this Act attributable to the
7 initial sale of that vehicle. Claims submitted by the
8 retailer are subject to the same restrictions and procedures
9 provided for in this Code Act. If it is determined that the
10 Department should issue a credit memorandum or refund, the
11 Department may first apply the amount thereof against any tax
12 or penalty or interest due or to become due under this Code
13 Act or under the Use Tax Act, the Service Occupation Tax Act,
14 the Service Use Tax Act, the Municipal Retailers' Occupation
15 Tax Act, the Municipal Use Tax Act, the Municipal Service
16 Occupation Tax Act, the County Retailers' Occupation Tax Act,
17 the County Supplementary Retailers' Occupation Tax Act, the
18 County Service Occupation Tax Act, the County Supplementary
19 Service Occupation Tax Act, the County Use Tax Act, the
20 County Supplementary Use Tax Act, Section 4 of the Water
21 Commission Act of 1985, subsections (b), (c) and (d) of
22 Section 5.01 of the Local Mass Transit District Act, or
23 subsections (e), (f) and (g) of Section 4.03 of the Regional
24 Transportation Authority Act, from the person who made the
25 erroneous payment. If no tax or penalty or interest is due
26 and no proceeding is pending to determine whether such person
27 is indebted to the Department for tax or penalty or interest,
28 the credit memorandum or refund shall be issued to the
29 claimant; or (in the case of a credit memorandum) the credit
30 memorandum may be assigned and set over by the lawful holder
31 thereof, subject to reasonable rules of the Department, to
32 any other person who is subject to this Code Act, the Use Tax
33 Act, the Service Occupation Tax Act, the Service Use Tax Act,
34 the Municipal Retailers' Occupation Tax Act, the Municipal
-351- LRB9000671KDdvA
1 Use Tax Act, the Municipal Service Occupation Tax Act, the
2 County Retailers' Occupation Tax Act, the County
3 Supplementary Retailers' Occupation Tax Act, the County
4 Service Occupation Tax Act, the County Supplementary Service
5 Occupation Tax Act, the County Use Tax Act, the County
6 Supplementary Use Tax Act, Section 4 of the Water Commission
7 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
8 the Local Mass Transit District Act, or subsections (e), (f)
9 and (g) of Section 4.03 of the Regional Transportation
10 Authority Act, and the amount thereof applied by the
11 Department against any tax or penalty or interest due or to
12 become due under this Code Act or under the Use Tax Act, the
13 Service Occupation Tax Act, the Service Use Tax Act, the
14 Municipal Retailers' Occupation Tax Act, the Municipal Use
15 Tax Act, the Municipal Service Occupation Tax Act, the County
16 Retailers' Occupation Tax Act, the County Supplementary
17 Retailers' Occupation Tax Act, the County Service Occupation
18 Tax Act, the County Supplementary Service Occupation Tax Act,
19 the County Use Tax Act, the County Supplementary Use Tax Act,
20 Section 4 of the Water Commission Act of 1985, subsections
21 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
22 District Act, or subsections (e), (f) and (g) of Section 4.03
23 of the Regional Transportation Authority Act, from such
24 assignee.However, as to any claim for credit or refund filed
25 with the Department on and after each January 1 and July 1 no
26 amount of tax or penalty or interest erroneously paid (either
27 in total or partial liquidation of a tax or penalty or amount
28 of interest under this Act) more than 3 years prior to such
29 January 1 and July 1, respectively, shall be credited or
30 refunded, except that if both the Department and the taxpayer
31 have agreed to an extension of time to issue a notice of tax
32 liability as provided in Section 4 of this Act, such claim
33 may be filed at any time prior to the expiration of the
34 period agreed upon.
-352- LRB9000671KDdvA
1 No claim shall may be allowed for any amount paid to the
2 Department, whether paid voluntarily or involuntarily, if
3 paid in total or partial liquidation of an assessment which
4 had become final before the claim for credit or refund to
5 recover the amount so paid is filed with the Department, or
6 if paid in total or partial liquidation of a judgment or
7 order of court.
8 No credit may be allowed or refund made for any amount
9 paid by or collected from any claimant unless it appears (a)
10 that the claimant bore the burden of such amount and has not
11 been relieved thereof nor reimbursed therefor and has not
12 shifted such burden directly or indirectly through inclusion
13 of such amount in the price of the tangible personal property
14 sold by him or her or in any manner whatsoever; and that no
15 understanding or agreement, written or oral, exists whereby
16 he or she or his or her legal representative may be relieved
17 of the burden of such amount, be reimbursed therefor or may
18 shift the burden thereof; or (b) that he or she or his or her
19 legal representative has repaid unconditionally such amount
20 to his or her vendee (1) who bore the burden thereof and has
21 not shifted such burden directly or indirectly, in any manner
22 whatsoever; (2) who, if he or she has shifted such burden,
23 has repaid unconditionally such amount to his own vendee; and
24 (3) who is not entitled to receive any reimbursement therefor
25 from any other source than from his or her vendor, nor to be
26 relieved of such burden in any manner whatsoever. No credit
27 may be allowed or refund made for any amount paid by or
28 collected from any claimant unless it appears that the
29 claimant has unconditionally repaid, to the purchaser, any
30 amount collected from the purchaser and retained by the
31 claimant with respect to the same transaction under Article
32 15 the Use Tax Act.
33 Any credit or refund that is allowed under this Section
34 shall bear interest at the rate and in the manner specified
-353- LRB9000671KDdvA
1 in the Uniform Penalty and Interest Act.
2 In case the Department determines that the claimant is
3 entitled to a refund, such refund shall be made only from
4 such appropriation as may be available for that purpose. If
5 it appears unlikely that the amount appropriated would permit
6 everyone having a claim allowed during the period covered by
7 such appropriation to elect to receive a cash refund, the
8 Department, by rule or regulation, shall provide for the
9 payment of refunds in hardship cases and shall define what
10 types of cases qualify as hardship cases.
11 If a retailer who has failed to pay retailers' occupation
12 tax on gross receipts from retail sales is required by the
13 Department to pay such tax, such retailer, without filing any
14 formal claim with the Department, shall be allowed to take
15 credit against such retailers' occupation tax liability to
16 the extent, if any, to which such retailer has paid an amount
17 equivalent to retailers' occupation tax or has paid use tax
18 in error to his or her vendor or vendors of the same tangible
19 personal property which such retailer bought for resale and
20 did not first use before selling it, and no penalty or
21 interest shall be charged to such retailer on the amount of
22 such credit. However, when such credit is allowed to the
23 retailer by the Department, the vendor is precluded from
24 refunding any of that tax to the retailer and filing a claim
25 for credit or refund with respect thereto with the
26 Department. The provisions of this amendatory Act shall be
27 applied retroactively, regardless of the date of the
28 transaction.
29 (Source: P.A. 89-359, eff. 8-17-95.)
30 Section 55-15. Credit or refund; payment and interest.
31 Any credit or refund that is allowed under Section 55-5 or
32 55-10 shall bear interest at the rate and in the manner
33 specified in the Uniform Penalty and Interest Act.
-354- LRB9000671KDdvA
1 In case the Department determines that the claimant is
2 entitled to a refund, such refund shall be made only from
3 such appropriation as may be available for that purpose. If
4 it appears unlikely that the amount appropriated would permit
5 everyone having a claim allowed during the period covered by
6 such appropriation to elect to receive a cash refund, the
7 Department, by rule or regulation, shall provide for the
8 payment of refunds in hardship cases and shall define what
9 types of cases qualify as hardship cases.
10 Section 55-35. Limitations. As to any claim for credit
11 or refund filed with the Department on and after January 1
12 but on or before June 30 of any given year, no amount of tax
13 or penalty or interest erroneously paid (either in total or
14 partial liquidation of a tax or penalty or interest under
15 this Code) more than 3 years prior to such January 1 shall be
16 credited or refunded, and as to any such claim filed on and
17 after July 1 but on or before December 31 of any given year,
18 no amount of tax or penalty or interest erroneously paid
19 (either in total or partial liquidation of a tax or penalty
20 or interest under this Code) more than 3 years prior to such
21 July 1 shall be credited or refunded except that, for
22 purposes of the retailers' occupation tax, if both the
23 Department and the taxpayer have agreed to an extension of
24 time to issue a notice of tax liability as provided in
25 Section 50-145 of this Code, such claim may be filed at any
26 time prior to the expiration of the period agreed upon.
27 (35 ILCS 120/6a) (from Ch. 120, par. 445a)
28 Section 55-20. Claims for credit or refund.
29 (a) For purposes of the retailers' occupation tax, Sec.
30 6a. claims for credit or refund shall be prepared and filed
31 upon forms provided by the Department. Each claim shall
32 state: (1) the name and principal business address of the
-355- LRB9000671KDdvA
1 claimant; (2) the period covered by the claim; (3) the total
2 amount of credit or refund claimed, giving in detail the net
3 amount of taxable receipts reported each month or other
4 return period used by the claimant as the basis for filing
5 returns in the period covered by the claim; (4) the total
6 amount of tax paid for each return period; (5) receipts upon
7 which tax liability is admitted for each return period; (6)
8 the amount of receipts on which credit or refund is claimed
9 for each return period; (7) the tax due for each return
10 period as corrected; (8) the amount of credit or refund
11 claimed for each return period; (9) reason or reasons why the
12 amount, for which the claim is filed, is alleged to have been
13 paid in error; (10) a list of the evidence (documentary or
14 otherwise) which the claimant has available to establish his
15 compliance with Section 55-5 6 as to bearing the burden of
16 the tax for which he seeks credit or refund; (11) payments or
17 parts thereof (if any) included in the claim and paid by the
18 claimant under protest; (12) sufficient information to
19 identify any suit which involves this Code Act, and to which
20 the claimant is a party;, and (13) such other information as
21 the Department may reasonably require. Where the claimant is
22 a corporation or limited liability company, the claim filed
23 on behalf of such corporation or limited liability company
24 shall be signed by the president, vice-president, secretary
25 or treasurer, by the properly accredited agent of such
26 corporation, or by a manager, member, or properly accredited
27 agent of the limited liability company.
28 (b) For purposes of the use tax, the service occupation
29 tax, and the service use tax, any claim filed under Section
30 55-10 shall be filed upon a form prescribed and furnished by
31 the Department. The claim shall be signed by the claimant
32 (or by the claimant's legal representative if the claimant
33 shall have died or become a person under legal disability),
34 or by a duly authorized agent of the claimant or his or her
-356- LRB9000671KDdvA
1 legal representative.
2 (c) A claim for credit or refund shall be considered to
3 have been filed with the Department on the date upon which it
4 is received by the Department. Upon receipt of any claim for
5 credit or refund filed under this Code Act, any officer or
6 employee of the Department, authorized in writing by the
7 Director of Revenue to acknowledge receipt of such claims on
8 behalf of the Department, shall execute on behalf of the
9 Department, and shall deliver or mail to the claimant or his
10 or her duly authorized agent, a written receipt,
11 acknowledging that the claim has been filed with the
12 Department, describing the claim in sufficient detail to
13 identify it and stating the date upon which the claim was
14 received by the Department. Such written receipt shall be
15 prima facie evidence that the Department received the claim
16 described in such receipt and shall be prima facie evidence
17 of the date when such claim was received by the Department.
18 In the absence of such a written receipt, the records of the
19 Department as to when the claim was received by the
20 Department, or as to whether or not the claim was received at
21 all by the Department, shall be deemed to be prima facie
22 correct upon these questions in the event of any dispute
23 between the claimant (or his legal representative) and the
24 Department concerning these questions.
25 (Source: P.A. 88-480.)
26 (35 ILCS 120/6b) (from Ch. 120, par. 445b)
27 Section 55-25. Determination of claim; hearing.
28 (a) Sec. 6b. As soon as practicable after a claim for
29 credit or refund is filed, the Department shall examine the
30 same and determine the amount of credit or refund to which
31 the claimant or the claimant's taxpayer's legal
32 representative, in the event that the claimant shall have
33 taxpayer has died or become a person under legal disability
-357- LRB9000671KDdvA
1 incompetent, is entitled and shall, by its Notice of
2 Tentative Determination of Claim, notify the claimant or his
3 or her legal representative of such determination, which
4 determination shall be prima facie correct. Proof of such
5 determination by the Department may be made at any hearing
6 before the Department or in any legal proceeding by a
7 reproduced copy of the Department's record relating thereto,
8 in the name of the Department under the certificate of the
9 Director of Revenue. Such reproduced copy shall, without
10 further proof, be admitted into evidence before the
11 Department or in any legal proceeding and shall be prima
12 facie proof of the correctness of the Department's
13 determination, as shown therein. If such claimant, or the
14 legal representative of a deceased claimant or a claimant who
15 is a person under legal disability shall, for purposes of the
16 use tax, the service occupation tax, and the service use tax,
17 within 20 days after the Department's Notice of Tentative
18 Determination of Claim, or for purposes of the retailers'
19 occupation tax incompetent taxpayer, within 60 days after the
20 Department's Notice of Tentative Determination of Claim, file
21 files a protest thereto and request requests a hearing
22 thereon, the Department shall give notice to such claimant,
23 or the legal representative of a deceased claimant taxpayer,
24 or a claimant taxpayer who is a person under legal
25 disability of the time and place fixed for such hearing, and
26 shall hold a hearing in conformity with the provisions of
27 this Code Act, and pursuant thereto shall issue its Final
28 Determination of the amount, if any, found to be due as a
29 result of such hearing, to such claimant, or the legal
30 representative of a deceased claimant taxpayer, or a claimant
31 taxpayer who is a person under legal disability.
32 (b) For purposes of the retailers' occupation tax only,
33 the Department's Final Determination may be reviewed by the
34 proper Circuit Court, in the same manner, within the same
-358- LRB9000671KDdvA
1 time, upon the same terms and conditions and to the same
2 extent, as provided by Section 77-5 12 of this Code Act.
3 Section 55-40. Application of credit or refund against
4 tax. For purposes of the use tax, the service occupation
5 tax, and the service use tax, if it is determined that the
6 Department should issue a credit or refund under this Code,
7 the Department may first apply the amount thereof against any
8 amount of tax or penalty or interest due under this Code, the
9 Municipal Retailers' Occupation Tax Act, the Municipal Use
10 Tax Act, the Municipal Service Occupation Tax Act, the County
11 Retailers' Occupation Tax Act, the County Supplementary
12 Retailers' Occupation Tax Act, the County Service Occupation
13 Tax Act, the County Supplementary Service Occupation Tax Act,
14 the County Use Tax Act, the County Supplementary Use Tax Act,
15 Section 4 of the Water Commission Act of 1985, subsections
16 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
17 District Act, or subsections (e), (f) and (g) of Section 4.03
18 of the Regional Transportation Authority Act, from the person
19 entitled to such credit or refund. For this purpose, if
20 proceedings are pending to determine whether or not any tax
21 or penalty or interest is due under this Code, the Municipal
22 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
23 Municipal Service Occupation Tax Act, the County Retailers'
24 Occupation Tax Act, the County Supplementary Retailers'
25 Occupation Tax Act, the County Service Occupation Tax Act,
26 the County Supplementary Service Occupation Tax Act, the
27 County Use Tax Act, the County Supplementary Use Tax Act,
28 Section 4 of the Water Commission Act of 1985, subsections
29 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
30 District Act, or subsections (e), (f) and (g) of Section 4.03
31 of the Regional Transportation Authority Act, from such
32 person, the Department may withhold issuance of the credit or
33 refund pending the final disposition of such proceedings and
-359- LRB9000671KDdvA
1 may apply such credit or refund against any amount found to
2 be due to the Department as a result of such proceedings. The
3 balance, if any, of the credit or refund shall be issued to
4 the person entitled thereto.
5 Any credit memorandum issued hereunder may be used by the
6 authorized holder thereof to pay any tax or penalty or
7 interest due or to become due under this Code or under the
8 Municipal Retailers' Occupation Tax Act, the Municipal Use
9 Tax Act, the Municipal Service Occupation Tax Act, the County
10 Retailers' Occupation Tax Act, the County Supplementary
11 Retailers' Occupation Tax Act, the County Service Occupation
12 Tax Act, the County Supplementary Service Occupation Tax Act,
13 the County Use Tax Act, the County Supplementary Use Tax Act,
14 Section 4 of the Water Commission Act of 1985, subsections
15 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
16 District Act, or subsections (e), (f) and (g) of Section 4.03
17 of the Regional Transportation Authority Act, from such
18 holder. Subject to reasonable rules of the Department, a
19 credit memorandum issued hereunder may be assigned by the
20 holder thereof to any other person for use in paying tax or
21 penalty or interest which may be due or become due under this
22 Code or, for purposes of the service occupation tax and the
23 service use tax, due under the Municipal Retailers'
24 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
25 Service Occupation Tax Act, the County Retailers' Occupation
26 Tax Act, the County Supplementary Retailers' Occupation Tax
27 Act, the County Service Occupation Tax Act, the County
28 Supplementary Service Occupation Tax Act, the County Use Tax
29 Act, the County Supplementary Use Tax Act, Section 4 of the
30 Water Commission Act of 1985, subsections (b), (c) and (d) of
31 Section 5.01 of the Local Mass Transit District Act, or
32 subsections (e), (f) and (g) of Section 4.03 of the Regional
33 Transportation Authority Act, from the assignee.
34 (b) For purposes of this Code, in any case in which
-360- LRB9000671KDdvA
1 there has been an erroneous refund of tax payable under this
2 Code Act, a notice of tax liability may be issued at any time
3 within 3 years from the making of that refund, or within 5
4 years from the making of that refund if it appears that any
5 part of the refund was induced by fraud or the
6 misrepresentation of a material fact. The amount of any
7 proposed assessment set forth in the notice shall be limited
8 to the amount of the erroneous refund.
9 (Source: P.A. 87-876; 87-879; 88-45.)
10 (35 ILCS 120/6c) (from Ch. 120, par. 445c)
11 Section 55-30. Final determination of claim. Sec. 6c. If
12 a protest to the Department's Notice of Tentative
13 Determination of Claim is not filed within 20 days and a
14 request for a hearing thereon is not made as provided in
15 Section 55-25 6b of this Act, the said Notice shall thereupon
16 become and operate as a Final Determination; and, if the
17 Department's Notice of Tentative Determination, upon becoming
18 a Final Determination, indicates no amount due to the
19 claimant, or, upon issuance of a credit memorandum or refund
20 for the amount, if any, found by the Department to be due,
21 the claim in all its aspects shall be closed and no longer
22 open to protest, hearing, judicial review, or by any other
23 proceeding or action whatever, either before the Department
24 or in any court of this State. Claims for credit or refund
25 hereunder must be filed with and initially determined by the
26 Department, the remedy herein provided being exclusive; and
27 no court shall have jurisdiction to determine the merits of
28 any claim except upon review as provided in this Code herein.
29 (Source: P. A. 77-1032.)
30 (35 ILCS 120/7) (from Ch. 120, par. 446)
31 Section 45-10. Records to be kept. Sec. 7. Every person
32 engaged in the business of selling tangible personal property
-361- LRB9000671KDdvA
1 at retail in this State shall keep records and books of all
2 sales of tangible personal property, together with invoices,
3 bills of lading, sales records, copies of bills of sale,
4 inventories prepared as of December 31 of each year or
5 otherwise annually as has been the custom in the specific
6 trade and other pertinent papers and documents. Every person
7 who is engaged in the business of selling tangible personal
8 property at retail in this State and who, in connection with
9 such business, also engages in other activities (including,
10 but not limited to, engaging in a service occupation) shall
11 keep such additional records and books of all such activities
12 as will accurately reflect the character and scope of such
13 activities and the amount of receipts realized therefrom. The
14 Department may adopt rules that establish requirements,
15 including record forms and formats, for records required to
16 be kept and maintained by taxpayers. For purposes of this
17 Section, "records" means all data maintained by the taxpayer,
18 including data on paper, microfilm, microfiche or any type of
19 machine-sensible data compilation.
20 All books and records and other papers and documents
21 which are required by this Code Act to be kept shall be kept
22 in the English language and shall, at all times during
23 business hours of the day, be subject to inspection by the
24 Department or its duly authorized agents and employees.
25 To support deductions made on the tax return form, or
26 authorized under this Code Act, on account of receipts from
27 isolated or occasional sales of tangible personal property,
28 on account of receipts from sales of tangible personal
29 property for resale, on account of receipts from sales to
30 governmental bodies or other exempted types of purchasers, on
31 account of receipts from sales of tangible personal property
32 in interstate commerce, and on account of receipts from any
33 other kind of transaction that is not taxable under this Code
34 Act, entries in any books, records or other pertinent papers
-362- LRB9000671KDdvA
1 or documents of the taxpayer in relation thereto shall be in
2 detail sufficient to show the name and address of the
3 taxpayer's customer in each such transaction, the character
4 of every such transaction, the date of every such
5 transaction, the amount of receipts realized from every such
6 transaction and such other information as may be necessary to
7 establish the non-taxable character of such transaction under
8 this Code Act.
9 Except in the case of a sale to a purchaser who will
10 always resell and deliver the property to his customers
11 outside Illinois, anyone claiming that he has made a
12 nontaxable sale for resale in some form as tangible personal
13 property shall also keep a record of the purchaser's
14 registration number or resale number with the Department.
15 It shall be presumed that all sales of tangible personal
16 property are subject to tax under this Code Act until the
17 contrary is established, and the burden of proving that a
18 transaction is not taxable hereunder shall be upon the person
19 who would be required to remit the tax to the Department if
20 such transaction is taxable. In the course of any audit or
21 investigation or hearing by the Department with reference to
22 a given taxpayer, if the Department finds that the taxpayer
23 lacks documentary evidence needed to support the taxpayer's
24 claim to exemption from tax hereunder, the Department is
25 authorized to notify the taxpayer in writing to produce such
26 evidence, and the taxpayer shall have 60 days subject to the
27 right in the Department to extend this period either on
28 request for good cause shown or on its own motion from the
29 date when such notice is sent to the taxpayer by certified or
30 registered mail (or delivered to the taxpayer if the notice
31 is served personally) in which to obtain and produce such
32 evidence for the Department's inspection, failing which the
33 matter shall be closed, and the transaction shall be
34 conclusively presumed to be taxable hereunder.
-363- LRB9000671KDdvA
1 Books and records and other papers reflecting gross
2 receipts received during any period with respect to which the
3 Department is authorized to issue notices of tax liability as
4 provided by Sections 50-145 4 and 50-150 5 of this Code Act
5 shall be preserved until the expiration of such period unless
6 the Department, in writing, shall authorize their destruction
7 or disposal prior to such expiration.
8 (Source: P.A. 88-480.)
9 (35 ILCS 120/8) (from Ch. 120, par. 447)
10 Section 70-10. Investigations and hearings. Sec. 8. For
11 the purpose of administering and enforcing the provisions of
12 this Code Act, the Department, or any officer or employee of
13 the Department designated, in writing, by the Director
14 thereof, may hold investigations and hearings concerning any
15 matters covered by this Code Act and may examine any books,
16 papers, records or memoranda bearing upon the sales of
17 tangible personal property or services of any such person,
18 and may require the attendance of such person or any officer
19 or employee of such person, or of any person having knowledge
20 of such business, and may take testimony and require proof
21 for its information. In the conduct of any investigation or
22 hearing, neither the Department nor any officer or employee
23 thereof shall be bound by the technical rules of evidence,
24 and no informality in any proceeding, or in the manner of
25 taking testimony, shall invalidate any order, decision, rule
26 or regulation made or approved or confirmed by the
27 Department. The Director of Revenue, or any officer or
28 employee of the Department authorized by the Director
29 thereof, shall have power to administer oaths to such
30 persons. The books, papers, records and memoranda of the
31 Department, or parts thereof, may be proved in any hearing,
32 investigation, or legal proceeding by a reproduced copy
33 thereof under the certificate of the Director of Revenue.
-364- LRB9000671KDdvA
1 Such reproduced copy shall, without further proof, be
2 admitted into evidence before the Department or in any legal
3 proceeding.
4 (Source: Laws 1965, p. 200.)
5 (35 ILCS 120/9) (from Ch. 120, par. 448)
6 Section 70-15. Incriminating testimony. Sec. 9. No
7 person shall be excused from testifying or from producing any
8 books, papers, records or memoranda in any investigation or
9 upon any hearing, when ordered to do so by the Department or
10 any officer or employee thereof, upon the ground that the
11 testimony or evidence, documentary or otherwise, may tend to
12 incriminate him or subject him to a criminal penalty, but no
13 person shall be prosecuted or subjected to any criminal
14 penalty for, or on account of, any transaction made or thing
15 concerning which he may testify or produce evidence,
16 documentary or otherwise, before the Department or an officer
17 or employee thereof; provided, that such immunity shall
18 extend only to a natural person who, in obedience to a
19 subpoena, gives testimony under oath or produces evidence,
20 documentary or otherwise, under oath. No person so testifying
21 shall be exempt from prosecution and punishment for perjury
22 committed in so testifying.
23 (Source: Laws 1933, p. 924.)
24 (35 ILCS 120/10) (from Ch. 120, par. 449)
25 Section 70-20. Subpoenas; witnesses; depositions. Sec.
26 10. The Department or any officer or employee of the
27 Department designated, in writing, by the Director thereof,
28 shall at its or his or her own instance, or on the written
29 request of any other party to the proceeding, issue subpoenas
30 requiring the attendance of and the giving of testimony by
31 witnesses, and subpoenas duces tecum requiring the production
32 of books, papers, records or memoranda. All subpoenas and
-365- LRB9000671KDdvA
1 subpoenas duces tecum issued under the terms of this Code Act
2 may be served by any person of full age. The fees of
3 witnesses for attendance and travel shall be the same as the
4 fees of witnesses before the circuit court of this State;
5 such fees to be paid when the witness is excused from further
6 attendance. When the witness is subpoenaed at the instance of
7 the Department or any officer or employee thereof, such fees
8 shall be paid in the same manner as other expenses of the
9 Department, and when the witness is subpoenaed at the
10 instance of any other party to any such proceeding the
11 Department may require that the cost of service of the
12 subpoena or subpoena duces tecum and the fee of the witness
13 be borne by the party at whose instance the witness is
14 summoned. In such case, the Department, in its discretion,
15 may require a deposit to cover the cost of such service and
16 witness fees. A subpoena or subpoena duces tecum issued as
17 aforesaid shall be served in the same manner as a subpoena
18 issued out of a court.
19 Any circuit court of this State, upon the application of
20 the Department or any officer or employee thereof, or upon
21 the application of any other party to the proceeding, may, in
22 its discretion, compel the attendance of witnesses, the
23 production of books, papers, records or memoranda and the
24 giving of testimony before the Department or any officer or
25 employee thereof conducting an investigation or holding a
26 hearing authorized by this Code Act, by an attachment for
27 contempt, or otherwise, in the same manner as production of
28 evidence may be compelled before the court.
29 The Department or any officer or employee thereof, or any
30 other party in an investigation or hearing before the
31 Department, may cause the depositions of witnesses within the
32 State to be taken in the manner prescribed by law for like
33 depositions in civil actions in courts of this State, and to
34 that end compel the attendance of witnesses and the
-366- LRB9000671KDdvA
1 production of books, papers, records or memoranda.
2 (Source: P.A. 83-334.)
3 (35 ILCS 120/11) (from Ch. 120, par. 450)
4 Section 40-5. Information confidential; exceptions. Sec.
5 11. All information received by the Department from returns
6 filed under this Code Act, or from any investigation
7 conducted under this Code Act, shall be confidential, except
8 for official purposes, and any person who divulges any such
9 information in any manner, except in accordance with a proper
10 judicial order or as otherwise provided by law, shall be
11 guilty of a Class B misdemeanor.
12 Nothing in this Code Act prevents the Director of Revenue
13 from publishing or making available to the public the names
14 and addresses of persons filing returns under this Code Act,
15 or reasonable statistics concerning the operation of the tax
16 by grouping the contents of returns so the information in any
17 individual return is not disclosed.
18 Nothing in this Code Act prevents the Director of Revenue
19 from divulging to the United States Government or the
20 government of any other state, or any village that does not
21 levy any real property taxes for village operations and that
22 receives more than 60% of its general corporate revenue from
23 taxes under Articles 10, 15, 20, and 25 of this Code the Use
24 Tax Act, the Service Use Tax Act, the Service Occupation Tax
25 Act, and the Retailers' Occupation Tax Act, or any officer or
26 agency thereof, for exclusively official purposes,
27 information received by the Department in administering this
28 Code Act, provided that such other governmental agency agrees
29 to divulge requested tax information to the Department.
30 The Department's furnishing of information derived from a
31 taxpayer's return or from an investigation conducted under
32 this Code Act to the surety on a taxpayer's bond that has
33 been furnished to the Department under this Code Act, either
-367- LRB9000671KDdvA
1 to provide notice to such surety of its potential liability
2 under the bond or, in order to support the Department's
3 demand for payment from such surety under the bond, is an
4 official purpose within the meaning of this Section.
5 The furnishing upon request of information obtained by
6 the Department from returns filed under this Code Act or
7 investigations conducted under this Code Act to the Illinois
8 Liquor Control Commission for official use is deemed to be an
9 official purpose within the meaning of this Section.
10 Notice to a surety of potential liability shall not be
11 given unless the taxpayer has first been notified, not less
12 than 10 days prior thereto, of the Department's intent to so
13 notify the surety.
14 The furnishing upon request of the Auditor General, or
15 his authorized agents, for official use, of returns filed and
16 information related thereto under this Code Act is deemed to
17 be an official purpose within the meaning of this Section.
18 Where an appeal or a protest has been filed on behalf of
19 a taxpayer, the furnishing upon request of the attorney for
20 the taxpayer of returns filed by the taxpayer and information
21 related thereto under this Code Act is deemed to be an
22 official purpose within the meaning of this Section.
23 The furnishing of financial information to a home rule
24 unit that has imposed a tax similar to that imposed by this
25 Code Act pursuant to its home rule powers, or to any village
26 that does not levy any real property taxes for village
27 operations and that receives more than 60% of its general
28 corporate revenue from taxes under Articles 10, 15, 20, and
29 25 of this Code the Use Tax Act, the Service Use Tax Act, the
30 Service Occupation Tax Act, and the Retailers' Occupation Tax
31 Act, upon request of the Chief Executive thereof, is an
32 official purpose within the meaning of this Section,
33 provided the home rule unit or village that does not levy any
34 real property taxes for village operations and that receives
-368- LRB9000671KDdvA
1 more than 60% of its general corporate revenue from taxes
2 under Articles 10, 15, 20, and 25 of this Code the Use Tax
3 Act, the Service Use Tax Act, the Service Occupation Tax Act,
4 and the Retailers' Occupation Tax Act agrees in writing to
5 the requirements of this Section.
6 For a village that does not levy any real property taxes
7 for village operations and that receives more than 60% of its
8 general corporate revenue from taxes under Articles 10, 15,
9 20, and 25 of this Code the Use Tax Act, Service Use Tax Act,
10 Service Occupation Tax Act, and Retailers' Occupation Tax
11 Act, the officers eligible to receive information from the
12 Department of Revenue under this Section are the village
13 manager and the chief financial officer of the village.
14 Information so provided shall be subject to all
15 confidentiality provisions of this Section. The written
16 agreement shall provide for reciprocity, limitations on
17 access, disclosure, and procedures for requesting
18 information.
19 The Director may make available to any State agency,
20 including the Illinois Supreme Court, which licenses persons
21 to engage in any occupation, information that a person
22 licensed by such agency has failed to file returns under this
23 Code Act or pay the tax, penalty and interest shown therein,
24 or has failed to pay any final assessment of tax, penalty or
25 interest due under this Code Act. The Director may also make
26 available to the Secretary of State information that a
27 limited liability company, which has filed articles of
28 organization with the Secretary of State, or corporation
29 which has been issued a certificate of incorporation by the
30 Secretary of State has failed to file returns under this Code
31 Act or pay the tax, penalty and interest shown therein, or
32 has failed to pay any final assessment of tax, penalty or
33 interest due under this Code Act. An assessment is final when
34 all proceedings in court for review of such assessment have
-369- LRB9000671KDdvA
1 terminated or the time for the taking thereof has expired
2 without such proceedings being instituted.
3 The Director shall make available for public inspection
4 in the Department's principal office and for publication, at
5 cost, administrative decisions issued on or after January 1,
6 1995. These decisions are to be made available in a manner so
7 that the following taxpayer information is not disclosed:
8 (1) The names, addresses, and identification
9 numbers of the taxpayer, related entities, and employees.
10 (2) At the sole discretion of the Director, trade
11 secrets or other confidential information identified as
12 such by the taxpayer, no later than 30 days after receipt
13 of an administrative decision, by such means as the
14 Department shall provide by rule.
15 The Director shall determine the appropriate extent of
16 the deletions allowed in paragraph (2). In the event the
17 taxpayer does not submit deletions, the Director shall make
18 only the deletions specified in paragraph (1).
19 The Director shall make available for public inspection
20 and publication an administrative decision within 180 days
21 after the issuance of the administrative decision. The term
22 "administrative decision" has the same meaning as defined in
23 Section 3-101 of Article III of the Code of Civil Procedure.
24 Costs collected under this Section shall be paid into the Tax
25 Compliance and Administration Fund.
26 (Source: P.A. 88-480; 88-669, eff. 11-29-94; 89-89, eff.
27 6-30-95.)
28 (35 ILCS 120/11a) (from Ch. 120, par. 450a)
29 Section 75-5. Application of the Administrative
30 Procedure Act. Sec. 11a. The Illinois Administrative
31 Procedure Act is hereby expressly adopted and shall apply to
32 all administrative rules and procedures of the Department of
33 Revenue under this Code Act, except that (1) paragraph (b) of
-370- LRB9000671KDdvA
1 Section 5-10 of the Illinois Administrative Procedure Act
2 does not apply to final orders, decisions and opinions of the
3 Department, (2) subparagraph (a)(2) of Section 5-10 of the
4 Illinois Administrative Procedure Act does not apply to forms
5 established by the Department for use under this Code Act,
6 and (3) the provisions of Section 10-45 of the Illinois
7 Administrative Procedure Act regarding proposals for decision
8 are excluded and not applicable to the Department under this
9 Code Act.
10 (Source: P.A. 88-45.)
11 (35 ILCS 120/12) (from Ch. 120, par. 451)
12 Section 77-5. Review under Administrative Review Law.
13 Sec. 12. The Department is authorized to make, promulgate and
14 enforce such reasonable rules and regulations relating to the
15 administration and enforcement of the provisions of this Code
16 Act as may be deemed expedient.
17 Whenever notice is required by this Code Act, such notice
18 may be given by United States registered or certified mail,
19 addressed to the person concerned at his last known address,
20 and proof of such mailing shall be sufficient for the
21 purposes of this Code Act. Notice of any hearing provided for
22 by this Code Act shall be so given not less than 7 days prior
23 to the day fixed for the hearing. Following the initial
24 contact of a person represented by an attorney, the
25 Department shall not contact the person concerned but shall
26 only contact the attorney representing the person concerned.
27 All hearings provided for in this Code Act with respect
28 to or concerning a taxpayer having his or her principal place
29 of business in this State other than in Cook County shall be
30 held at the Department's office nearest to the location of
31 the taxpayer's principal place of business: provided that if
32 the taxpayer has his or her principal place of business in
33 Cook County, such hearing shall be held in Cook County; and
-371- LRB9000671KDdvA
1 provided, further, that if the taxpayer does not have his or
2 her principal place of business in this State, such hearing
3 shall be held in Sangamon County.
4 The Circuit Court of the County wherein the taxpayer has
5 his or her principal place of business, or of Sangamon County
6 in those cases where the taxpayer does not have his or her
7 principal place of business in this State, shall have power
8 to review all final administrative decisions of the
9 Department in administering the provisions of this Code Act:
10 provided that if the administrative proceeding which is to be
11 reviewed judicially is a claim for refund proceeding
12 commenced in accordance with Section 55-5 or 55-10 6 of this
13 Code Act and Section 2a of the State Officers and Employees
14 Money Disposition Act "An Act in relation to the payment and
15 disposition of moneys received by officers and employees of
16 the State of Illinois by virtue of their office or
17 employment", approved June 9, 1911, as amended, the Circuit
18 Court having jurisdiction of the action for judicial review
19 under this Section and under the Administrative Review Law,
20 as amended, shall be the same court that entered the
21 temporary restraining order or preliminary injunction which
22 is provided for in Section 2a of the State Officers and
23 Employees Money Disposition Act "An Act in relation to the
24 payment and disposition of moneys received by officers and
25 employees of the State of Illinois by virtue of their office
26 or employment", and which enables such claim proceeding to be
27 processed and disposed of as a claim for refund proceeding
28 rather than as a claim for credit proceeding.
29 The provisions of the Administrative Review Law, and the
30 rules adopted pursuant thereto, shall apply to and govern all
31 proceedings for the judicial review of final administrative
32 decisions of the Department hereunder. The term
33 "administrative decision" is defined as in Section 3-101 of
34 the Code of Civil Procedure.
-372- LRB9000671KDdvA
1 Any person filing an action under the Administrative
2 Review Law to review a final assessment or revised final
3 assessment issued by the Department under this Code Act
4 shall, within 20 days after filing the complaint, file a bond
5 with good and sufficient surety or sureties residing in this
6 State or licensed to do business in this State or, instead of
7 the bond, obtain an order from the court imposing a lien upon
8 the plaintiff's property as hereinafter provided in Article
9 65. If the person filing the complaint fails to comply with
10 this bonding requirement within 20 days after filing the
11 complaint, the Department shall file a motion to dismiss and
12 the court shall dismiss the action unless the person filing
13 the action complies with the bonding requirement set out in
14 this provision within 30 days after the filing of the
15 Department's motion to dismiss. Upon dismissal of any
16 complaint for failure to comply with the jurisdictional
17 prerequisites herein set forth, the court is empowered to and
18 shall enter judgment against the taxpayer and in favor of the
19 Department in the amount of the final assessment or revised
20 final assessment, together with any interest which may have
21 accrued since the Department issued the final assessment or
22 revised final assessment, and for costs, which judgment is
23 enforceable as other judgments for the payment of money. The
24 lien provided for in this Section shall not be applicable to
25 the real property of a corporate surety duly licensed to do
26 business in this State. The amount of such bond shall be
27 fixed and approved by the court, but shall not be less than
28 the amount of the tax and penalty claimed to be due by the
29 Department in its final assessment or revised final
30 assessment to the person filing such bond, plus the amount of
31 interest due from such person to the Department at the time
32 when the Department issued its final assessment to such
33 person. Such bond shall be executed to the Department of
34 Revenue and shall be conditioned on the taxpayer's payment
-373- LRB9000671KDdvA
1 within 30 days after termination of the proceedings for
2 judicial review of the amount of tax and penalty and interest
3 found by the court to be due in such proceedings for judicial
4 review. Such bond, when filed and approved, shall, from such
5 time until 2 years after termination of the proceedings for
6 judicial review in which the bond is filed, be a lien against
7 the real estate situated in the county in which the bond is
8 filed, of the person filing such bond, and of the surety or
9 sureties on such bond, until the condition of the bond has
10 been complied with or until the bond has been canceled as
11 hereinafter provided. If the person filing any such bond
12 fails to keep the condition thereof, such bond shall
13 thereupon be forfeited, and the Department may institute an
14 action upon such bond in its own name for the entire amount
15 of the bond and costs. Such action upon the bond shall be in
16 addition to any other remedy provided for herein. If the
17 person filing such bond complies with the condition thereof,
18 or if, in the proceedings for judicial review in which such
19 bond is filed, the court determines that no amount of tax or
20 penalty or interest is due, such bond shall be canceled.
21 If the court finds in a particular case that the
22 plaintiff cannot procure and furnish a satisfactory surety or
23 sureties for the kind of bond required herein, the court may
24 relieve the plaintiff of the obligation of filing such bond,
25 if, upon the timely application for a lien in lieu thereof
26 and accompanying proof therein submitted, the court is
27 satisfied that any such lien imposed would operate to secure
28 the assessment in the manner and to the degree as would a
29 bond. Upon a finding that such lien applied for would secure
30 the assessment at issue, the court shall enter an order, in
31 lieu of such bond, subjecting the plaintiff's real and
32 personal property (including subsequently acquired property),
33 situated in the county in which such order is entered, to a
34 lien in favor of the Department. Such lien shall be for the
-374- LRB9000671KDdvA
1 amount of the tax and penalty claimed to be due by the
2 Department in its final assessment or revised final
3 assessment, plus the amount of interest due from such person
4 to the Department at the time when the Department issued its
5 final assessment to such person, and shall continue in full
6 force and effect until the termination of the proceedings for
7 judicial review, or until the plaintiff pays, to the
8 Department, the tax and penalty and interest to secure which
9 the lien is given, whichever happens first. In the exercise
10 of its discretion, the court may impose a lien regardless of
11 the ratio of the taxpayer's assets to the final assessment or
12 revised final assessment plus the amount of the interest and
13 penalty. Nothing in this Section shall be construed to give
14 the Department a preference over the rights of any bona fide
15 purchaser, mortgagee, judgment creditor or other lien holder
16 arising prior to the entry of the order creating such lien in
17 favor of the Department: provided, however, that the word
18 "bona fide", as used in this Section, shall not include any
19 mortgage of real or personal property or any other credit
20 transaction that results in the mortgagee or the holder of
21 the security acting as trustee for unsecured creditors of the
22 taxpayer mentioned in the order for lien who executed such
23 chattel or real property mortgage or the document evidencing
24 such credit transaction. Such lien shall be inferior to the
25 lien of general taxes, special assessments and special taxes
26 heretofore or hereafter levied by any political subdivision
27 of this State. Such lien shall not be effective against any
28 purchaser with respect to any item in a retailer's stock in
29 trade purchased from the retailer in the usual course of such
30 retailer's business, and such lien shall not be enforced
31 against the household effects, wearing apparel, or the books,
32 tools or implements of a trade or profession kept for use by
33 any person. Such lien shall not be effective against real
34 property whose title is registered under the provisions of
-375- LRB9000671KDdvA
1 the Registered Titles (Torrens) Act "An Act concerning land
2 titles", approved May 1, 1897, as amended, until the
3 provisions of Section 85 of that Act are complied with.
4 Service upon the Director of Revenue or the Assistant
5 Director of Revenue of the Department of Revenue of summons
6 issued in an action to review a final administrative decision
7 of the Department shall be service upon the Department. The
8 Department shall certify the record of its proceedings if the
9 taxpayer pays to it the sum of 75¢ per page of testimony
10 taken before the Department and 25¢ per page of all other
11 matters contained in such record, except that these charges
12 may be waived where the Department is satisfied that the
13 aggrieved party is a poor person who cannot afford to pay
14 such charges. If payment for such record is not made by the
15 taxpayer within 30 days after notice from the Department or
16 the Attorney General of the cost thereof, the court in which
17 the proceeding is pending, on motion of the Department, shall
18 dismiss the complaint and (where the administrative decision
19 as to which the action for judicial review was filed is a
20 final assessment or revised final assessment) shall enter
21 judgment against the taxpayer and in favor of the Department
22 for the amount of tax and penalty shown by the Department's
23 final assessment or revised final assessment to be due, plus
24 interest as provided for in Section 50-150 5 of this Code Act
25 from the date when the liability upon which such interest
26 accrued became delinquent until the entry of the judgment in
27 the action for judicial review under the Administrative
28 Review Law, and also for costs.
29 Whenever any proceeding provided by this Code Act is
30 begun before the Department, either by the Department or by a
31 person subject to this Code Act, and such person thereafter
32 dies or becomes a person under legal disability before such
33 proceeding is concluded, the legal representative of the
34 deceased or person under legal disability shall notify the
-376- LRB9000671KDdvA
1 Department of such death or legal disability. Such legal
2 representative, as such, shall then be substituted by the
3 Department for such person. If the legal representative
4 fails to notify the Department of his or her appointment as
5 such legal representative, the Department may, upon its own
6 motion, substitute such legal representative in the
7 proceeding pending before the Department for the person who
8 died or became a person under legal disability.
9 The changes made by Public Act 89-60 to Section 12 of the
10 Retailers' Occupation Tax Act, the predecessor to this
11 Section 77-5, by this amendatory Act of 1995 apply to all
12 actions pending on and after June 30, the effective date of
13 this amendatory Act of 1995 to review a final assessment or
14 revised final assessment issued by the Department.
15 (Source: P.A. 89-60, eff. 6-30-95.)
16 (35 ILCS 120/13) (from Ch. 120, par. 452)
17 Section 80-5. Violations under the retailers' occupation
18 tax. This Section applies to the retailers' occupation tax
19 only. Sec. 13. When the amount due is under $300, any person
20 engaged in the business of selling tangible personal property
21 at retail in this State who fails to file a return, or who
22 files a fraudulent return, or any officer, employee or agent
23 of a corporation, member, employee or agent of a partnership,
24 or manager, member, agent, or employee of a limited liability
25 company engaged in the business of selling tangible personal
26 property at retail in this State who, as such officer,
27 employee, agent, manager, or member is under a duty to file a
28 return, or any officer, agent or employee of a corporation,
29 member, agent, or employee of a partnership, or manager,
30 member, agent, or employee of a limited liability company
31 engaged in the business of selling tangible personal property
32 at retail in this State who files or causes to be filed or
33 signs or causes to be signed a fraudulent return filed on
-377- LRB9000671KDdvA
1 behalf of such corporation or limited liability company, or
2 any accountant or other agent who knowingly enters false
3 information on the return of any taxpayer under Article 10
4 this Act, is guilty of a Class 4 felony.
5 Any person who or any officer or director of any
6 corporation, partner or member of any partnership, or manager
7 or member of a limited liability company that: (a) violates
8 Sections 35-5 through 35-45 Section 2a of this Act or (b)
9 fails to keep books and records, or fails to produce books
10 and records as required by Section 45-10 7 or (c) willfully
11 violates a rule or regulation of the Department for the
12 administration and enforcement of Article 10 this Act is
13 guilty of a Class A misdemeanor. Any person, manager or
14 member of a limited liability company, or officer or director
15 of any corporation who engages in the business of selling
16 tangible personal property at retail after the certificate of
17 registration of that person, corporation, limited liability
18 company, or partnership has been revoked is guilty of a Class
19 A misdemeanor. Each day such person, corporation, or
20 partnership is engaged in business without a certificate of
21 registration or after the certificate of registration of that
22 person, corporation, or partnership has been revoked
23 constitutes a separate offense.
24 Any purchaser who obtains a registration number or resale
25 number from the Department through misrepresentation, or who
26 represents to a seller that such purchaser has a registration
27 number or a resale number from the Department when he knows
28 that he does not, or who uses his registration number or
29 resale number to make a seller believe that he is buying
30 tangible personal property for resale when such purchaser in
31 fact knows that this is not the case is guilty of a Class 4
32 felony.
33 Any distributor, supplier or other reseller of motor fuel
34 registered pursuant to Sections 35-5 through 35-50 Section 2a
-378- LRB9000671KDdvA
1 or 2c of this Act who fails to collect the prepaid tax on
2 invoiced gallons of motor fuel sold or who fails to deliver a
3 statement of tax paid to the purchaser or to the Department
4 as required by Sections 10-30 and 10-35 2d and 2e of this
5 Act, respectively, shall be guilty of a Class A misdemeanor
6 if the amount due is under $300, and a Class 4 felony if the
7 amount due is $300 or more.
8 When the amount due is under $300, any person who accepts
9 money that is due to the Department under Article 10 this Act
10 from a taxpayer for the purpose of acting as the taxpayer's
11 agent to make the payment to the Department, but who fails to
12 remit such payment to the Department when due is guilty of a
13 Class 4 felony.
14 Any seller who collects or attempts to collect an amount
15 (however designated) which purports to reimburse such seller
16 for retailers' occupation tax liability measured by receipts
17 which such seller knows are not subject to retailers'
18 occupation tax, or any seller who knowingly over-collects or
19 attempts to over-collect an amount purporting to reimburse
20 such seller for retailers' occupation tax liability in a
21 transaction which is subject to the tax that is imposed by
22 Article 10 this Act, shall be guilty of a Class 4 felony for
23 each such offense. This paragraph does not apply to an
24 amount collected by the seller as reimbursement for the
25 seller's retailers' occupation tax liability on receipts
26 which are subject to tax under Article 10 this Act as long as
27 such collection is made in compliance with the tax collection
28 brackets prescribed by the Department in its rules and
29 regulations.
30 When the amount due is $300 or more, any person engaged
31 in the business of selling tangible personal property at
32 retail in this State who fails to file a return, or who files
33 a fraudulent return, or any officer, employee or agent of a
34 corporation, member, employee or agent of a partnership, or
-379- LRB9000671KDdvA
1 manager, member, agent, or employee of a limited liability
2 company engaged in the business of selling tangible personal
3 property at retail in this State who, as such officer,
4 employee, agent, manager, or member is under a duty to file a
5 return and who fails to file such return or any officer,
6 agent, or employee of a corporation, member, agent or
7 employee of a partnership, or manager, member, agent, or
8 employee of a limited liability company engaged in the
9 business of selling tangible personal property at retail in
10 this State who files or causes to be filed or signs or causes
11 to be signed a fraudulent return filed on behalf of such
12 corporation or limited liability company, or any accountant
13 or other agent who knowingly enters false information on the
14 return of any taxpayer under Article 10 this Act is guilty of
15 a Class 3 felony.
16 When the amount due is $300 or more, any person engaged
17 in the business of selling tangible personal property at
18 retail in this State who accepts money that is due to the
19 Department under Article 10 this Act from a taxpayer for the
20 purpose of acting as the taxpayer's agent to make payment to
21 the Department but fails to remit such payment to the
22 Department when due, is guilty of a Class 3 felony.
23 Any person whose principal place of business is in this
24 State and who is charged with a violation under this Section
25 shall be tried in the county where his principal place of
26 business is located unless he asserts a right to be tried in
27 another venue.
28 Any taxpayer or agent of a taxpayer who with the intent
29 to defraud purports to make a payment due to the Department
30 by issuing or delivering a check or other order upon a real
31 or fictitious depository for the payment of money, knowing
32 that it will not be paid by the depository, shall be guilty
33 of a deceptive practice in violation of Section 17-1 of the
34 Criminal Code of 1961, as amended.
-380- LRB9000671KDdvA
1 A prosecution for any act in violation of this Section
2 may be commenced at any time within 3 years of the commission
3 of that act.
4 (Source: P.A. 87-879; 88-480.)
5 (35 ILCS 120/13.5) (from Ch. 120, par. 452 1/2)
6 Sec. 13.5. (Repealed).
7 (Source: Repealed by P.A. 87-205.)
8 (35 ILCS 120/14) (from Ch. 120, par. 453)
9 Section 1-1. Short title. Sec. 14. This Act may be cited
10 as the Occupation and Use Tax Code. shall be known as the
11 "Retailers' Occupation Tax Act" and
12 Section 10-10. Tax additional. The tax herein imposed in
13 this Article shall be in addition to all other occupation or
14 privilege taxes imposed by the State of Illinois or by any
15 municipal corporation or political subdivision thereof.
16 (Source: Laws 1933, p. 924.)
17 Section 5-5. Acquired outside this State. For purposes
18 of the use tax, "acquired outside this State", in addition to
19 its usual and popular meaning, also means the delivery,
20 outside Illinois, of tangible personal property that is
21 purchased in this State and delivered from a point in this
22 State to a point of delivery outside this State.
23 Section 5-30. Cost price. For purposes of the service
24 occupation tax and the service use tax, "cost price" means
25 the consideration paid by the serviceman for a purchase
26 valued in money, whether paid in money or otherwise,
27 including cash, credits and services, and shall be determined
28 without any deduction on account of the supplier's cost of
29 the property sold or on account of any other expense incurred
-381- LRB9000671KDdvA
1 by the supplier. When a serviceman contracts out part or all
2 of the services required in his sale of service, it shall be
3 presumed that the cost price to the serviceman of the
4 property transferred to him or her by his or her
5 subcontractor is equal to 50% of the subcontractor's charges
6 to the serviceman in the absence of proof of the
7 consideration paid by the subcontractor for the purchase of
8 such property.
9 Section 5-40. Gasohol. "Gasohol" means motor fuel that
10 is no more than 90% gasoline and at least 10% denatured
11 ethanol that contains no more than 1.25% water by weight.
12 Section 5-85. Purchase at retail. For purposes of the
13 use tax, "purchase at retail" means the acquisition of the
14 ownership of or title to tangible personal property through a
15 sale at retail.
16 Section 5-90. Purchased from a serviceman. For purposes
17 of the service use tax, "purchased from a serviceman" means
18 the acquisition of the ownership of, or title to, tangible
19 personal property through a sale of service.
20 Section 5-110. Retailer maintaining a place of business
21 in this State. For purposes of the use tax, "retailer
22 maintaining a place of business in this State", or any like
23 term, means and includes any of the following retailers:
24 (1) A retailer having or maintaining within this
25 State, directly or by a subsidiary, an office,
26 distribution house, sales house, warehouse or other place
27 of business, or any agent or other representative
28 operating within this State under the authority of the
29 retailer or its subsidiary, irrespective of whether such
30 place of business or agent or other representative is
-382- LRB9000671KDdvA
1 located here permanently or temporarily, or whether such
2 retailer or subsidiary is licensed to do business in this
3 State. However, the ownership of property that is located
4 at the premises of a printer with which the retailer has
5 contracted for printing and that consists of the final
6 printed product, property that becomes a part of the
7 final printed product, or copy from which the printed
8 product is produced shall not result in the retailer
9 being deemed to have or maintain an office, distribution
10 house, sales house, warehouse, or other place of business
11 within this State.
12 (2) A retailer soliciting orders for tangible
13 personal property by means of a telecommunication or
14 television shopping system (which utilizes toll free
15 numbers) which is intended by the retailer to be
16 broadcast by cable television or other means of
17 broadcasting, to consumers located in this State.
18 (3) A retailer, pursuant to a contract with a
19 broadcaster or publisher located in this State,
20 soliciting orders for tangible personal property by means
21 of advertising which is disseminated primarily to
22 consumers located in this State and only secondarily to
23 bordering jurisdictions.
24 (4) A retailer soliciting orders for tangible
25 personal property by mail if the solicitations are
26 substantial and recurring and if the retailer benefits
27 from any banking, financing, debt collection,
28 telecommunication, or marketing activities occurring in
29 this State or benefits from the location in this State of
30 authorized installation, servicing, or repair facilities.
31 (5) A retailer that is owned or controlled by the
32 same interests that own or control any retailer engaging
33 in business in the same or similar line of business in
34 this State.
-383- LRB9000671KDdvA
1 (6) A retailer having a franchisee or licensee
2 operating under its trade name if the franchisee or
3 licensee is required to collect the tax under this
4 Section.
5 (7) A retailer, pursuant to a contract with a cable
6 television operator located in this State, soliciting
7 orders for tangible personal property by means of
8 advertising which is transmitted or distributed over a
9 cable television system in this State.
10 (8) A retailer engaging in activities in Illinois,
11 which activities in the state in which the retail
12 business engaging in such activities is located would
13 constitute maintaining a place of business in that state.
14 Section 5-125. Serviceman. "Serviceman" means any person
15 who is engaged in the occupation of making sales of service.
16 Section 5-130. Serviceman maintaining a place of
17 business in this State. For purposes of the service use tax,
18 "serviceman maintaining a place of business in this State",
19 or any like term, means and includes any serviceman:
20 (1) having or maintaining within this State,
21 directly or by a subsidiary, an office, distribution
22 house, sales house, warehouse or other place of business,
23 or any agent or other representative operating within
24 this State under the authority of the serviceman or its
25 subsidiary, irrespective of whether such place of
26 business or agent or other representative is located here
27 permanently or temporarily, or whether such serviceman or
28 subsidiary is licensed to do business in this State;
29 (2) soliciting orders for tangible personal
30 property by means of a telecommunication or television
31 shopping system (which utilizes toll free numbers) which
32 is intended by the retailer to be broadcast by cable
-384- LRB9000671KDdvA
1 television or other means of broadcasting, to consumers
2 located in this State;
3 (3) pursuant to a contract with a broadcaster or
4 publisher located in this State, soliciting orders for
5 tangible personal property by means of advertising which
6 is disseminated primarily to consumers located in this
7 State and only secondarily to bordering jurisdictions;
8 (4) soliciting orders for tangible personal
9 property by mail if the solicitations are substantial and
10 recurring and if the retailer benefits from any banking,
11 financing, debt collection, telecommunication, or
12 marketing activities occurring in this State or benefits
13 from the location in this State of authorized
14 installation, servicing, or repair facilities;
15 (5) being owned or controlled by the same interests
16 which own or control any retailer engaging in business in
17 the same or similar line of business in this State;
18 (6) having a franchisee or licensee operating under
19 its trade name if the franchisee or licensee is required
20 to collect the tax under this Section;
21 (7) pursuant to a contract with a cable television
22 operator located in this State, soliciting orders for
23 tangible personal property by means of advertising which
24 is transmitted or distributed over a cable television
25 system in this State; or
26 (8) engaging in activities in Illinois, which
27 activities in the state in which the supply business
28 engaging in such activities is located would constitute
29 maintaining a place of business in that state.
30 Section 5-135. Supplier. For purposes of the service
31 occupation tax and the service use tax, "supplier" means any
32 person who makes sales of tangible personal property to
33 servicemen for the purpose of resale as an incident to a sale
-385- LRB9000671KDdvA
1 of service.
2 Section 5-140. Transfer. For purposes of the service
3 occupation tax, "transfer" means any transfer of the title to
4 property or of the ownership of property whether or not the
5 transferor retains title as security for the payment of
6 amounts due him from the transferee.
7 Section 5-145. Use.
8 (a) For purposes of the use tax, "use" means the
9 exercise by any person of any right or power over tangible
10 personal property incident to the ownership of that property,
11 except that it does not include the sale of such property in
12 any form as tangible personal property in the regular course
13 of business to the extent that such property is not first
14 subjected to a use for which it was purchased, and does not
15 include the use of such property by its owner for
16 demonstration purposes: provided that the property purchased
17 is deemed to be purchased for the purpose of resale, despite
18 first being used, to the extent to which it is resold as an
19 ingredient of an intentionally produced product or by-product
20 of manufacturing. "Use" does not mean the demonstration use
21 or interim use of tangible personal property by a retailer
22 before he sells that tangible personal property. For
23 watercraft or aircraft, if the period of demonstration use or
24 interim use by the retailer exceeds 18 months, the retailer
25 shall pay on the retailers' original cost price the tax
26 imposed by Article 15, and no credit for that tax is
27 permitted if the watercraft or aircraft is subsequently sold
28 by the retailer. "Use" does not mean the physical
29 incorporation of tangible personal property, to the extent
30 not first subjected to a use for which it was purchased, as
31 an ingredient or constituent, into other tangible personal
32 property (1) which is sold in the regular course of business
-386- LRB9000671KDdvA
1 or (2) which the person incorporating such ingredient or
2 constituent therein has undertaken at the time of such
3 purchase to cause to be transported in interstate commerce to
4 destinations outside the State of Illinois: provided that the
5 property purchased is deemed to be purchased for the purpose
6 of resale, despite first being used, to the extent to which
7 it is resold as an ingredient of an intentionally produced
8 product or by-product of manufacturing.
9 (b) For purposes of the service use tax, "use" means the
10 exercise by any person of any right or power over tangible
11 personal property incident to the ownership of that property,
12 but does not include the sale or use for demonstration by him
13 of that property in any form as tangible personal property in
14 the regular course of business. "Use" does not mean the
15 interim use of tangible personal property nor the physical
16 incorporation of tangible personal property, as an ingredient
17 or constituent, into other tangible personal property, (1)
18 which is sold in the regular course of business or (2) which
19 the person incorporating such ingredient or constituent
20 therein has undertaken at the time of such purchase to cause
21 to be transported in interstate commerce to destinations
22 outside the State of Illinois.
23 Section 15-5. Tax imposed. A tax is imposed upon the
24 privilege of using in this State tangible personal property
25 purchased at retail from a retailer, including computer
26 software, and including photographs, negatives, and positives
27 that are the product of photoprocessing, but not including
28 products of photoprocessing produced for use in motion
29 pictures for commercial exhibition. The tax imposed in this
30 Article shall be known as the "use tax".
31 Section 15-10. Tax additional. The tax imposed in this
32 Article shall be in addition to all other occupation or
-387- LRB9000671KDdvA
1 privilege taxes imposed by the State of Illinois or by any
2 municipal corporation or political subdivision thereof.
3 Section 15-15. Rate of tax. Unless otherwise provided
4 in this Section, the tax imposed by this Article is at the
5 rate of 6.25% of either the selling price or the fair market
6 value, if any, of the tangible personal property. In all
7 cases where property functionally used or consumed is the
8 same as the property that was purchased at retail, then the
9 tax is imposed on the selling price of the property. In all
10 cases where property functionally used or consumed is a
11 by-product or waste product that has been refined,
12 manufactured, or produced from property purchased at retail,
13 then the tax is imposed on the lower of the fair market
14 value, if any, of the specific property so used in this State
15 or on the selling price of the property purchased at retail.
16 For purposes of this Section "fair market value" means the
17 price at which property would change hands between a willing
18 buyer and a willing seller, neither being under any
19 compulsion to buy or sell and both having reasonable
20 knowledge of the relevant facts. The fair market value shall
21 be established by Illinois sales by the taxpayer of the same
22 property as that functionally used or consumed, or if there
23 are no such sales by the taxpayer, then comparable sales or
24 purchases of property of like kind and character in Illinois.
25 With respect to gasohol, the tax imposed by this Article
26 applies to 70% of the proceeds of sales made on or after
27 January 1, 1990, and before July 1, 1999, and to 100% of the
28 proceeds of sales made thereafter, except that from July 1,
29 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
30 in this State during the 12 months beginning July 1 following
31 any calendar year for which the Department has determined
32 that the percentages in Section 10 of the Gasohol Fuels Tax
33 Abatement Act have not been met.
-388- LRB9000671KDdvA
1 With respect to food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks, and food that has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances,
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person, and insulin, urine testing
8 materials, syringes, and needles used by diabetics, for human
9 use, the tax is imposed at the rate of 1%. For the purposes
10 of this Section, the term "soft drinks" means any complete,
11 finished, ready-to-use, non-alcoholic drink, whether
12 carbonated or not, including but not limited to soda water,
13 cola, fruit juice, vegetable juice, carbonated water, and all
14 other preparations commonly known as soft drinks of whatever
15 kind or description that are contained in any closed or
16 sealed bottle, can, carton, or container, regardless of size.
17 "Soft drinks" does not include coffee, tea, non-carbonated
18 water, infant formula, milk or milk products as defined in
19 the Grade A Pasteurized Milk and Milk Products Act, or drinks
20 containing 50% or more natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Code, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 If the property that is purchased at retail from a
28 retailer is acquired outside Illinois and used outside
29 Illinois before being brought to Illinois for use here and is
30 taxable under this Article, the "selling price" on which the
31 tax is computed shall be reduced by an amount that represents
32 a reasonable allowance for depreciation for the period of
33 prior out-of-state use.
-389- LRB9000671KDdvA
1 Section 15-20. Collection. The tax imposed by this
2 Article shall be collected from the purchaser by a retailer
3 maintaining a place of business in this State or a retailer
4 authorized by the Department under Section 60-10 of this
5 Code, and shall be remitted to the Department as provided in
6 Sections 50-5 through 50-140 of this Code.
7 The tax imposed by this Article that is not paid to a
8 retailer under this Section shall be paid to the Department
9 directly by any person using the property within this State
10 as provided in Section 50-155 of this Code.
11 Retailers shall collect the tax from users by adding the
12 tax to the selling price of tangible personal property, when
13 sold for use, in the manner prescribed by the Department.
14 The Department may adopt and promulgate reasonable rules and
15 regulations for the adding of the tax by retailers to selling
16 prices by prescribing bracket systems for the purpose of
17 enabling the retailers to add and collect, as far as
18 practicable, the amount of the tax.
19 If a seller collects use tax measured by receipts that
20 are not subject to use tax, or if a seller, in collecting use
21 tax measured by receipts that are subject to tax under this
22 Article, collects more from the purchaser than the required
23 amount of the use tax on the transaction, the purchaser shall
24 have a legal right to claim a refund of that amount from the
25 seller. If, however, that amount is not refunded to the
26 purchaser for any reason, the seller is liable to pay that
27 amount to the Department. This paragraph does not apply to
28 an amount collected by the seller as use tax on receipts that
29 are subject to tax under this Article as long as the
30 collection is made in compliance with the tax collection
31 brackets prescribed by the Department in its rules and
32 regulations.
33 Section 15-25. R.O.T. nontaxability. If the seller of
-390- LRB9000671KDdvA
1 tangible personal property for use would not be taxable under
2 Article 10 of this Code despite all elements of the sale
3 occurring in Illinois, then the tax imposed by this Article
4 does not apply to the use of the tangible personal property
5 in this State.
6 Section 15-30. Serviceman transfer. Tangible personal
7 property purchased by a serviceman, as defined in Section
8 5-125, is subject to the tax imposed by this Article when
9 purchased for transfer by the serviceman incidental to
10 completion of a maintenance agreement.
11 Section 15-35. Method of stating tax. The tax imposed
12 by this Article shall when collected be stated as a distinct
13 item separate and apart from the selling price of the
14 tangible personal property. However, where it is not possible
15 to state the sales tax separately in situations such as sales
16 from vending machines or sales of liquor by the drink the
17 Department may by rule exempt such sales from this
18 requirement so long as purchasers are notified by a sign that
19 the tax is included in the selling price.
20 Section 20-5. Tax imposed. A tax is imposed upon all
21 persons engaged in the business of making sales of service
22 (referred to as "servicemen") on all tangible personal
23 property transferred as an incident of a sale of service,
24 including computer software, and including photographs,
25 negatives, and positives that are the product of
26 photoprocessing, but not including products of
27 photoprocessing produced for use in motion pictures for
28 public commercial exhibition. The tax imposed in this Article
29 shall be known as the "service occupation tax".
30 Section 20-10. Tax additional. The tax imposed in this
-391- LRB9000671KDdvA
1 Article shall be in addition to all other occupation or
2 privilege taxes imposed by the State of Illinois or by any
3 municipal corporation or political subdivision thereof.
4 Section 20-15. Rate of tax. Unless otherwise provided in
5 this Section, the tax imposed by this Article is at the rate
6 of 6.25% of the "selling price", as defined in Section 5-120,
7 of the tangible personal property. For the purpose of
8 computing this tax, in no event shall the "selling price" be
9 less than the cost price to the serviceman of the tangible
10 personal property transferred. The selling price of each
11 item of tangible personal property transferred as an incident
12 of a sale of service may be shown as a distinct and separate
13 item on the serviceman's billing to the service customer. If
14 the selling price is not so shown, the selling price of the
15 tangible personal property is deemed to be 50% of the
16 serviceman's entire billing to the service customer. When,
17 however, a serviceman contracts to design, develop, and
18 produce special order machinery or equipment, the tax imposed
19 by this Article shall be based on the serviceman's cost price
20 of the tangible personal property transferred incident to the
21 completion of the contract.
22 With respect to gasohol, as defined in Section 5-40, the
23 tax imposed by this Article shall apply to 70% of the cost
24 price of property transferred as an incident to the sale of
25 service on or after January 1, 1990, and before July 1, 1999,
26 and to 100% of the cost price thereafter, except that from
27 July 1, 1997 to July 1, 1999, the rate shall be 85% for
28 gasohol sold in this State during the 12 months beginning
29 July 1 following any calendar year for which the Department
30 has determined that the percentages in Section 10 of the
31 Gasohol Fuels Tax Abatement Act have not been met.
32 At the election of any registered serviceman made for
33 each fiscal year, sales of service in which the aggregate
-392- LRB9000671KDdvA
1 annual cost price of tangible personal property transferred
2 as an incident to the sales of service is less than 35%, or
3 75% in the case of servicemen transferring prescription drugs
4 or servicemen engaged in graphic arts production, of the
5 aggregate annual total gross receipts from all sales of
6 service, the tax imposed by this Article shall be based on
7 the serviceman's cost price of the tangible personal property
8 transferred incident to the sale of those services.
9 The tax shall be imposed at the rate of 1% on food
10 prepared for immediate consumption and transferred incident
11 to a sale of service subject to this Article or Article 25 by
12 an entity licensed under the Hospital Licensing Act or the
13 Nursing Home Care Act. The tax shall also be imposed at the
14 rate of 1% on food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption and is not otherwise
18 included in this paragraph) and prescription and
19 nonprescription medicines, drugs, medical appliances,
20 modifications to a motor vehicle for the purpose of rendering
21 it usable by a disabled person, and insulin, urine testing
22 materials, syringes, and needles used by diabetics, for human
23 use. For the purposes of this Section, the term "soft
24 drinks" means any complete, finished, ready-to-use,
25 non-alcoholic drink, whether carbonated or not, including but
26 not limited to soda water, cola, fruit juice, vegetable
27 juice, carbonated water, and all other preparations commonly
28 known as soft drinks of whatever kind or description that are
29 contained in any closed or sealed can, carton, or container,
30 regardless of size. "Soft drinks" does not include coffee,
31 tea, non-carbonated water, infant formula, milk or milk
32 products as defined in the Grade A Pasteurized Milk and Milk
33 Products Act, or drinks containing 50% or more natural fruit
34 or vegetable juice.
-393- LRB9000671KDdvA
1 Notwithstanding any other provisions of this Code, "food
2 for human consumption that is to be consumed off the premises
3 where it is sold" includes all food sold through a vending
4 machine, except soft drinks and food products that are
5 dispensed hot from a vending machine, regardless of the
6 location of the vending machine.
7 Section 20-20. Collection. The tax imposed by this
8 Article shall be paid to the Department by any serviceman
9 transferring tangible personal property as an incident to a
10 sale of service taxable under this Article. If a serviceman
11 has paid service occupation tax to his or her supplier based
12 upon the cost price of tangible personal property before
13 January 1, 1990, or in error on or after January 1, 1990, the
14 serviceman, without filing any formal claims with the
15 Department, shall be allowed to take credit against his or
16 her service occupation tax liability based upon the selling
17 price of that property transferred in the course of providing
18 service to the extent of the amount of the tax so paid.
19 If any serviceman collects an amount (however designated)
20 that purports to reimburse the serviceman for service
21 occupation tax liability measured by receipts or selling
22 prices that are not subject to service occupation tax, or if
23 any serviceman, in collecting an amount (however designated)
24 that purports to reimburse the serviceman for service
25 occupation tax liability measured by receipts or selling
26 prices that are subject to tax under this Article, collects
27 more from the purchaser than the serviceman's service
28 occupation tax liability in the transaction, the purchaser
29 shall have a legal right to claim a refund of that amount
30 from the serviceman. If, however, that amount is not refunded
31 to the purchaser by a serviceman for any reason, the supplier
32 or serviceman is liable to pay that amount to the Department.
33 This paragraph does not apply to an amount collected by the
-394- LRB9000671KDdvA
1 supplier as service occupation tax, nor to an amount
2 collected by the serviceman as reimbursement for the
3 serviceman's service occupation tax liability on receipts or
4 cost prices that are subject to tax under this Article, as
5 long as the collection is made in compliance with the tax
6 collection brackets prescribed by the Department in its rules
7 and regulations.
8 Section 25-5. Tax imposed. A tax is imposed upon the
9 privilege of using in this State real or tangible personal
10 property acquired as an incident to the purchase of a service
11 from a serviceman, including computer software, and including
12 photographs, negatives, and positives that are the product of
13 photoprocessing, but not including products of
14 photoprocessing produced for use in motion pictures for
15 public commercial exhibition. The tax imposed in this Article
16 shall be known as the "service use tax".
17 Section 25-10. Tax additional. The tax imposed in this
18 Article shall be in addition to all other occupation or
19 privilege taxes imposed by the State of Illinois or by any
20 municipal corporation or political subdivision thereof.
21 Section 25-15. Rate of tax. Unless otherwise provided
22 in this Section, the tax imposed by this Article is at the
23 rate of 6.25% of the selling price of tangible personal
24 property transferred as an incident to the sale of service,
25 but, for the purpose of computing this tax, in no event shall
26 the selling price be less than the cost price of the property
27 to the serviceman.
28 With respect to gasohol, as defined in Section 5-40, the
29 tax imposed by this Article applies to 70% of the selling
30 price of property transferred as an incident to the sale of
31 service on or after January 1, 1990, and before July 1, 1999,
-395- LRB9000671KDdvA
1 and to 100% of the selling price thereafter, except that from
2 July 1, 1997 to July 1, 1999, the rate shall be 85% for
3 gasohol sold in this State during the 12 months beginning
4 July 1 following any calendar year for which the Department
5 has determined that the percentages in Section 10 of the
6 Gasohol Fuels Tax Abatement Act have not been met.
7 At the election of any registered serviceman made for
8 each fiscal year, sales of service in which the aggregate
9 annual cost price of tangible personal property transferred
10 as an incident to the sales of service is less than 35%, or
11 75% in the case of servicemen transferring prescription drugs
12 or servicemen engaged in graphic arts production, of the
13 aggregate annual total gross receipts from all sales of
14 service, the tax imposed by this Article shall be based on
15 the serviceman's cost price of the tangible personal property
16 transferred as an incident to the sale of those services.
17 The tax shall be imposed at the rate of 1% on food
18 prepared for immediate consumption and transferred incident
19 to a sale of service subject to this Article or Article 20
20 by an entity licensed under the Hospital Licensing Act or the
21 Nursing Home Care Act. The tax shall also be imposed at the
22 rate of 1% on food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption and is not otherwise
26 included in this paragraph) and prescription and
27 nonprescription medicines, drugs, medical appliances,
28 modifications to a motor vehicle for the purpose of rendering
29 it usable by a disabled person, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use. For the purposes of this Section, the term "soft drinks"
32 means any complete, finished, ready-to-use, non-alcoholic
33 drink, whether carbonated or not, including but not limited
34 to soda water, cola, fruit juice, vegetable juice, carbonated
-396- LRB9000671KDdvA
1 water, and all other preparations commonly known as soft
2 drinks of whatever kind or description that are contained in
3 any closed or sealed bottle, can, carton, or container,
4 regardless of size. "Soft drinks" does not include coffee,
5 tea, non-carbonated water, infant formula, milk or milk
6 products as defined in the Grade A Pasteurized Milk and Milk
7 Products Act, or drinks containing 50% or more natural fruit
8 or vegetable juice.
9 Notwithstanding any other provisions of this Code, "food
10 for human consumption that is to be consumed off the premises
11 where it is sold" includes all food sold through a vending
12 machine, except soft drinks and food products that are
13 dispensed hot from a vending machine, regardless of the
14 location of the vending machine.
15 If the property that is acquired from a serviceman is
16 acquired outside Illinois and used outside Illinois before
17 being brought to Illinois for use here and is taxable under
18 this Article, the "selling price" on which the tax is
19 computed shall be reduced by an amount that represents a
20 reasonable allowance for depreciation for the period of prior
21 out-of-state use.
22 Section 25-20. Collection. The tax imposed by this
23 Article shall be collected at the time of purchase in the
24 manner prescribed by the Department from the user by a
25 serviceman maintaining a place of business in this State or
26 by a serviceman authorized by the Department under Section
27 60-10 of this Code, and the tax shall be remitted to the
28 Department as provided in Sections 50-5 through 50-140 of
29 this Code.
30 The tax imposed by this Article that is not paid to a
31 serviceman under this Section shall be paid to the Department
32 directly by any person using the property within this State
33 as provided in Section 50-155 of this Code.
-397- LRB9000671KDdvA
1 If a serviceman collects service use tax measured by
2 receipts or selling prices that are not subject to service
3 use tax, or if a serviceman, in collecting service use tax
4 measured by receipts or selling prices that are subject to
5 tax under this Article, collects more from the purchaser than
6 the required amount of the service use tax on the
7 transaction, the purchaser shall have a legal right to claim
8 a refund of that amount from the serviceman. If, however,
9 that amount is not refunded to the purchaser for any reason,
10 the serviceman is liable to pay that amount to the
11 Department. This paragraph does not apply to an amount
12 collected by the serviceman as service use tax on receipts or
13 selling prices that are subject to tax under this Article as
14 long as the collection is made in compliance with the tax
15 collection brackets prescribed by the Department in its rules
16 and regulations.
17 Section 25-25. S. O. T. nontaxability. If the
18 serviceman would not be taxable under Article 20 of this Code
19 despite all elements of his sale of service occurring in
20 Illinois, then the tax imposed by this Article does not apply
21 to the use in this State of the property transferred as a
22 necessary incident to the sale of service.
23 Section 25-30. Method of stating tax. The tax imposed by
24 this Article may be stated as a distinct item separate and
25 apart from the selling price of the service, and shall be so
26 stated when requested by the buyer.
27 Section 25-35. Selling price of tangible personal
28 property transferred incident to a sale of service.
29 (a) Except as provided in subsection (b) of this
30 Section, the selling price of each item of tangible personal
31 property transferred incident to a sale of service may be
-398- LRB9000671KDdvA
1 stated as a distinct item by the serviceman to the service
2 customer and the tax imposed by this Article shall when
3 collected be stated as a distinct item separate and apart
4 from the selling price of the tangible personal property. If
5 the selling price of each item of tangible personal property
6 transferred incidental to a sale of service is not stated as
7 a separate item on the serviceman's billing to the service
8 customer, then the tax imposed by this Article shall be based
9 on 50% of the serviceman's entire billing to the service
10 customer.
11 (b) When a serviceman contracts to design, develop and
12 produce special order machinery or equipment, the tax imposed
13 by this Article shall be based on the serviceman's cost price
14 of the tangible personal property transferred incident to the
15 completion of the contract.
16 Section 30-35. Machinery and equipment used in aircraft
17 maintenance facility. Subject to the provisions of Section
18 35-80 of this Code, machinery and equipment used in the
19 operation of an aircraft maintenance facility as defined in
20 Section 35-80, located within an enterprise zone shall be
21 exempt from the taxes imposed by this Code. The machinery
22 and equipment exempted by this Section is limited to
23 machinery and equipment used primarily to maintain, rebuild
24 or repair aircraft used as rolling stock moving in interstate
25 commerce for hire by the operator of the facility. The
26 Department of Revenue shall promulgate any rules and
27 regulations necessary to further define machinery and
28 equipment eligible for exemption in an aircraft maintenance
29 facility.
30 Section 30-145. Rolling stock; proceeds from sales.
31 (a) For purposes of the retailers' occupation tax and
32 the use tax, proceeds from sales to owners, lessors, or
-399- LRB9000671KDdvA
1 shippers of tangible personal property that is utilized by
2 interstate carriers for hire for use as rolling stock moving
3 in interstate commerce as long as so used by the interstate
4 carriers for hire, and equipment operated by a
5 telecommunications provider, licensed as a common carrier by
6 the Federal Communications Commission, which is permanently
7 installed in or affixed to aircraft moving in interstate
8 commerce are exempt.
9 (b) For purposes of the service occupation tax and the
10 service use tax, "sale of service" shall not include a sale
11 or transfer of tangible personal property as an incident to
12 the rendering of service for owners, lessors or shippers of
13 tangible personal property which is utilized by interstate
14 carriers for hire for use as rolling stock moving in
15 interstate commerce as long as so used by such interstate
16 carriers for hire, and equipment operated by a
17 telecommunications provider, licensed as a common carrier by
18 the Federal Communications Commission, which is permanently
19 installed in or affixed to aircraft moving in interstate
20 commerce.
21 Section 30-220. Multistate exemption.
22 (a) To prevent actual or likely multistate taxation, the
23 taxes imposed by Article 15 and Article 25 do not apply to
24 the use of tangible personal property in this State under the
25 following circumstances:
26 (1) The use, in this State, of tangible personal
27 property acquired outside this State by a nonresident
28 individual and brought into this State by the individual
29 for his or her own use while temporarily within this
30 State or while passing through this State.
31 (2) The use, in this State, of tangible personal
32 property that is acquired outside this State and caused
33 to be brought into this State by a person who has already
-400- LRB9000671KDdvA
1 paid a tax in another state in respect to the sale,
2 purchase, or use of that property, to the extent of the
3 amount of the tax properly due and paid in the other
4 state.
5 (3) The temporary storage, in this State, of
6 tangible personal property that is acquired outside this
7 State and that, after being brought into this State and
8 stored here temporarily, is used solely outside this
9 State or is physically attached to or incorporated into
10 other tangible personal property that is used solely
11 outside this State, or is altered by converting,
12 fabricating, manufacturing, printing, processing, or
13 shaping, and, as altered, is used solely outside this
14 State.
15 (b) To prevent actual or likely multistate taxation, the
16 tax imposed by Article 15 does not apply to the temporary
17 storage in this State of building materials and fixtures that
18 are acquired either in this State or outside this State by an
19 Illinois registered combination retailer and construction
20 contractor, and that the purchaser thereafter uses outside
21 this State by incorporating that property into real estate
22 located outside this State.
23 (c) To prevent actual or likely multistate taxation, the
24 tax imposed by Article 25 does not apply to the use, in this
25 State, of property that is acquired outside this State and
26 that is moved into this State for use as rolling stock moving
27 in interstate commerce.
28 Section 30-225. Property acquired by nonresident. The
29 taxes imposed by Article 15 and Article 25 do not apply to
30 the use, in this State, of tangible personal property that is
31 acquired outside this State by a nonresident individual who
32 then brings the property to this State for use here and who
33 has used the property outside this State for at least 3
-401- LRB9000671KDdvA
1 months before bringing the property to this State.
2 Where a business that is not operated in Illinois, but is
3 operated in another State, is moved to Illinois or opens an
4 office, plant, or other business facility in Illinois, that
5 business shall not be taxed on its use, in Illinois, of used
6 tangible personal property, other than, for purposes of the
7 use tax only, items of tangible personal property that must
8 be titled or registered with the State of Illinois or whose
9 registration with the United States Government must be filed
10 with the State of Illinois, that the business bought outside
11 Illinois and used outside Illinois in the operation of the
12 business for at least 3 months before moving the used
13 property to Illinois for use in this State.
14 Section 30-230. Manufacturer's Purchase Credit. For
15 purposes of the use tax and the service use tax, for
16 purchases of machinery and equipment made on and after
17 January 1, 1995, a purchaser of manufacturing machinery and
18 equipment that qualifies for the exemption provided by
19 Section 30-95 of this Code earns a credit in an amount equal
20 to a fixed percentage of the tax which would have been
21 incurred under Article 15 or 25 of this Code on those
22 purchases. For purchases of graphic arts machinery and
23 equipment made on or after July 1, 1996, a purchaser of
24 graphic arts machinery and equipment that qualifies for the
25 exemption provided by Section 30-90 of this Code earns a
26 credit in an amount equal to a fixed percentage of the tax
27 that would have been incurred under Article 15 or 25 of this
28 Code on those purchases. The credit earned for purchases of
29 manufacturing machinery and equipment or graphic arts
30 machinery and equipment shall be referred to as the
31 Manufacturer's Purchase Credit. A graphic arts producer is a
32 person engaged in graphic arts production as defined in
33 Section 5-45 of this Code. Beginning July 1, 1996, all
-402- LRB9000671KDdvA
1 references in this Section to manufacturers or manufacturing
2 shall also be deemed to refer to graphic arts producers or
3 graphic arts production.
4 The amount of credit shall be a percentage of the tax
5 that would have been incurred on the purchase of
6 manufacturing machinery and equipment or graphic arts
7 machinery and equipment if the exemptions provided by Section
8 30-90 or 30-95 of this Code had not been applicable. The
9 percentage shall be as follows:
10 (1) 15% for purchases made on or before June 30,
11 1995.
12 (2) 25% for purchases made after June 30, 1995, and
13 on or before June 30, 1996.
14 (3) 40% for purchases made after June 30, 1996, and
15 on or before June 30, 1997.
16 (4) 50% for purchases made on or after July 1,
17 1997.
18 A purchaser of production related tangible personal
19 property desiring to use the Manufacturer's Purchase Credit
20 shall certify to the seller that the purchaser is satisfying
21 all or part of the liability under Article 15 or Article 25
22 of this Code that is due on the purchase of the production
23 related tangible personal property by use of Manufacturer's
24 Purchase Credit. The Manufacturer's Purchase Credit
25 certification must be dated and shall include the name and
26 address of the purchaser, the purchaser's registration
27 number, if registered, the credit being applied, and a
28 statement that the State use tax or service use tax liability
29 is being satisfied with the manufacturer's or graphic arts
30 producer's accumulated purchase credit. Certification may be
31 incorporated into the manufacturer's or graphic arts
32 producer's purchase order. Manufacturer's Purchase Credit
33 certification by the manufacturer or graphic arts producer
34 may be used to satisfy the retailer's or serviceman's
-403- LRB9000671KDdvA
1 liability under Article 10 or Article 20 of this Code for the
2 credit claimed, not to exceed 6.25% of the receipts subject
3 to tax from a qualifying purchase, but only if the retailer
4 or serviceman reports the Manufacturer's Purchase Credit
5 claimed as required by the Department. The Manufacturer's
6 Purchase Credit earned by purchase of exempt manufacturing
7 machinery and equipment or graphic arts machinery and
8 equipment is a non-transferable credit. A manufacturer or
9 graphic arts producer that enters into a contract involving
10 the installation of tangible personal property into real
11 estate within a manufacturing or graphic arts production
12 facility may authorize a construction contractor to utilize
13 credit accumulated by the manufacturer or graphic arts
14 producer to purchase the tangible personal property. A
15 manufacturer or graphic arts producer intending to use
16 accumulated credit to purchase such tangible personal
17 property shall execute a written contract authorizing the
18 contractor to utilize a specified dollar amount of credit.
19 The contractor shall furnish the supplier with the
20 manufacturer's or graphic arts producer's name, registration
21 or resale number, and a statement that a specific amount of
22 the use tax or service use tax liability, not to exceed 6.25%
23 of the selling price, is being satisfied with the credit. The
24 manufacturer or graphic arts producer shall remain liable to
25 timely report all information required by the annual Report
26 of Manufacturer's Purchase Credit Used for all credit
27 utilized by a construction contractor.
28 The Manufacturer's Purchase Credit may be used to satisfy
29 liability under Article 15 or Article 25 of this Code due on
30 the purchase of production related tangible personal property
31 (including purchases by a manufacturer, by a graphic arts
32 producer, or by a lessor who rents or leases the use of the
33 property to a manufacturer or graphic arts producer) that
34 does not otherwise qualify for the manufacturing machinery
-404- LRB9000671KDdvA
1 and equipment exemption or the graphic arts machinery and
2 equipment exemption. "Production related tangible personal
3 property" means (i) all tangible personal property used or
4 consumed by the purchaser in a manufacturing facility in
5 which a manufacturing process described in Section 30-100 of
6 this Code takes place, including tangible personal property
7 purchased for incorporation into real estate within a
8 manufacturing facility and including, but not limited to,
9 tangible personal property used or consumed in activities
10 such as preproduction material handling, receiving, quality
11 control, inventory control, storage, staging, and packaging
12 for shipping and transportation purposes; (ii) all tangible
13 personal property used or consumed by the purchaser in a
14 graphic arts facility in which graphic arts production as
15 described in Section 5-45 of this Code takes place, including
16 tangible personal property purchased for incorporation into
17 real estate within a graphic arts facility and including, but
18 not limited to, all tangible personal property used or
19 consumed in activities such as graphic arts preliminary or
20 pre-press production, pre-production material handling,
21 receiving, quality control, inventory control, storage,
22 staging, sorting, labeling, mailing, tying, wrapping, and
23 packaging; and (iii) all tangible personal property used or
24 consumed by the purchaser for research and development.
25 "Production related tangible personal property" does not
26 include (i) tangible personal property used, within or
27 without a manufacturing facility, in sales, purchasing,
28 accounting, fiscal management, marketing, personnel
29 recruitment or selection, or landscaping or (ii) tangible
30 personal property required to be titled or registered with a
31 department, agency, or unit of federal, state, or local
32 government. The Manufacturer's Purchase Credit may be used
33 to satisfy the tax arising either from the purchase of
34 machinery and equipment on or after January 1, 1995 for which
-405- LRB9000671KDdvA
1 the exemption provided by Section 30-95 of this Code was
2 erroneously claimed, or the purchase of machinery and
3 equipment on or after July 1, 1996 for which the exemption
4 provided by Section 30-90 of this Code was erroneously
5 claimed, but not in satisfaction of penalty, if any, and
6 interest for failure to pay the tax when due. A purchaser of
7 production related tangible personal property who is required
8 to pay Illinois use tax or service use tax on the purchase
9 directly to the Department may utilize the Manufacturer's
10 Purchase Credit in satisfaction of the tax arising from that
11 purchase, but not in satisfaction of penalty and interest. A
12 purchaser who uses the Manufacturer's Purchase Credit to
13 purchase property which is later determined not to be
14 production related tangible personal property may be liable
15 for tax, penalty, and interest on the purchase of that
16 property as of the date of purchase but shall be entitled to
17 use the disallowed Manufacturer's Purchase Credit, so long as
18 it has not expired, on qualifying purchases of production
19 related tangible personal property not previously subject to
20 credit usage. The Manufacturer's Purchase Credit earned by a
21 manufacturer or graphic arts producer expires the last day of
22 the second calendar year following the calendar year in which
23 the credit arose.
24 A purchaser earning Manufacturer's Purchase Credit shall
25 sign and file an annual Report of Manufacturer's Purchase
26 Credit Earned for each calendar year no later than the last
27 day of the sixth month following the calendar year in which a
28 Manufacturer's Purchase Credit is earned. A Report of
29 Manufacturer's Purchase Credit Earned shall be filed on forms
30 as prescribed or approved by the Department and shall state,
31 for each month of the calendar year: (i) the total purchase
32 price of all purchases of exempt manufacturing or graphic
33 arts machinery on which the credit was earned; (ii) the total
34 State use tax or service use tax which would have been due on
-406- LRB9000671KDdvA
1 those items; (iii) the percentage used to calculate the
2 amount of credit earned; (iv) the amount of credit earned;
3 and (v) such other information as the Department may
4 reasonably require. A purchaser earning Manufacturer's
5 Purchase Credit shall maintain records which identify, as to
6 each purchase of manufacturing or graphic arts machinery and
7 equipment on which the purchaser earned Manufacturer's
8 Purchase Credit, the vendor (including, if applicable, either
9 the vendor's registration number or Federal Employer
10 Identification Number), the purchase price, and the amount of
11 Manufacturer's Purchase Credit earned on each purchase.
12 A purchaser using Manufacturer's Purchase Credit shall
13 sign and file an annual Report of Manufacturer's Purchase
14 Credit Used for each calendar year no later than the last day
15 of the sixth month following the calendar year in which a
16 Manufacturer's Purchase Credit is used. A Report of
17 Manufacturer's Purchase Credit Used shall be filed on forms
18 as prescribed or approved by the Department and shall state,
19 for each month of the calendar year: (i) the total purchase
20 price of production related tangible personal property
21 purchased from Illinois suppliers; (ii) the total purchase
22 price of production related tangible personal property
23 purchased from out-of-state suppliers; (iii) the total amount
24 of credit used during such month; and (iv) such other
25 information as the Department may reasonably require. A
26 purchaser using Manufacturer's Purchase Credit shall maintain
27 records that identify, as to each purchase of production
28 related tangible personal property on which the purchaser
29 used Manufacturer's Purchase Credit, the vendor (including,
30 if applicable, either the vendor's registration number or
31 Federal Employer Identification Number), the purchase price,
32 and the amount of Manufacturer's Purchase Credit used on each
33 purchase.
34 No annual report shall be filed before May 1, 1996. A
-407- LRB9000671KDdvA
1 purchaser that fails to file an annual Report of
2 Manufacturer's Purchase Credit Earned or an annual Report of
3 Manufacturer's Purchase Credit Used by the last day of the
4 sixth month following the end of the calendar year shall
5 forfeit all Manufacturer's Purchase Credit for that calendar
6 year unless it establishes that its failure to file was due
7 to reasonable cause. Manufacturer's Purchase Credit reports
8 may be amended to report and claim credit on qualifying
9 purchases not previously reported at any time before the
10 credit would have expired, unless both the Department and the
11 purchaser have agreed to an extension of the statute of
12 limitations for the issuance of a notice of tax liability as
13 provided in Section 50-145 of this Code. If the time for
14 assessment or refund has been extended, then amended reports
15 for a calendar year may be filed at any time prior to the
16 date to which the statute of limitations for the calendar
17 year or portion thereof has been extended. No Manufacturer's
18 Purchase Credit report filed with the Department for periods
19 prior to January 1, 1995 shall be approved. Manufacturer's
20 Purchase Credit claimed on an amended report may be used to
21 satisfy tax liability under Article 15 or Article 25 of this
22 Code (i) on qualifying purchases of production related
23 tangible personal property made after the date the amended
24 report is filed or (ii) assessed by the Department on
25 qualifying purchases of production related tangible personal
26 property made in the case of manufacturers on or after
27 January 1, 1995, or in the case of graphic arts producers on
28 or after July 1, 1996.
29 If the purchaser is not the manufacturer or a graphic
30 arts producer, but rents or leases the use of the property to
31 a manufacturer or graphic arts producer, the purchaser may
32 earn, report, and use Manufacturer's Purchase Credit in the
33 same manner as a manufacturer or graphic arts producer.
34 A purchaser shall not be entitled to any Manufacturer's
-408- LRB9000671KDdvA
1 Purchase Credit for a purchase that is required to be
2 reported and is not timely reported as provided in this
3 Section. A purchaser remains liable for (i) any tax that was
4 satisfied by use of a Manufacturer's Purchase Credit, as of
5 the date of purchase, if that use is not timely reported as
6 required in this Section and (ii) for any applicable
7 penalties and interest for failing to pay the tax when due.
8 Section 30-235. Sale of service. For purposes of the
9 service occupation tax and the service use tax, "sale of
10 service" means any transaction except:
11 (1) a retail sale of tangible personal property
12 taxable under Article 10 or Article 15.
13 (2) a sale of tangible personal property for the
14 purpose of resale made in compliance with Section 35-50.
15 (3) for purposes of the service occupation tax
16 only, until January 1, 1997, a sale, by a registered
17 serviceman paying service occupation tax to the
18 Department, of special order printed materials delivered
19 outside Illinois and which are not returned to this
20 State, if delivery is made by the seller or agent of the
21 seller, including an agent who causes the product to be
22 delivered outside Illinois by a common carrier or the
23 U.S. postal service.
24 Section 30-240. Election not to be sale of service. For
25 purposes of the service occupation tax and the service use
26 tax, "sale of service" shall not include, at the election of
27 any serviceman not required to be otherwise registered as a
28 retailer under Sections 35-5 through 35-45, made for each
29 fiscal year sales of service in which the aggregate annual
30 cost price of tangible personal property transferred as an
31 incident to the sales of service is less than 35%, or 75% in
32 the case of servicemen transferring prescription drugs or
-409- LRB9000671KDdvA
1 servicemen engaged in graphic arts production, of the
2 aggregate annual total gross receipts from all sales of
3 service. The purchase of such tangible personal property by
4 the serviceman shall be subject to the retailers' occupation
5 tax and the use tax. However, if a primary serviceman who
6 has made the election described in this Section subcontracts
7 service work to a secondary serviceman who has also made the
8 election described in this Section, the primary serviceman
9 does not incur a use tax liability if the secondary
10 serviceman (i) has paid or will pay use tax on his or her
11 cost price of any tangible personal property transferred to
12 the primary serviceman and (ii) certifies that fact in
13 writing to the primary serviceman.
14 Section 30-245. Maintenance agreement. Tangible personal
15 property transferred incident to the completion of a
16 maintenance agreement is exempt from the taxes imposed
17 pursuant to Article 20 and Article 25.
18 Section 35-10. Certificate of registration; use tax. A
19 retailer maintaining a place of business in this State, if
20 required to register for purposes of the retailers'
21 occupation tax, need not obtain an additional certificate of
22 registration for purposes of the use tax, but shall be deemed
23 to be sufficiently registered under the provisions of this
24 Code. Every retailer maintaining a place of business in this
25 State, if not required to register for purposes of the
26 retailers' occupation tax, shall apply to the Department
27 (upon a form prescribed and furnished by the Department) for
28 a certificate of registration for purposes of the use tax.
29 Section 35-15. Certificate of registration; service
30 occupation tax. A supplier maintaining a place of business
31 in this State, if required to register for purposes of the
-410- LRB9000671KDdvA
1 retailers' occupation tax, the use tax, or the service use
2 tax, need not obtain an additional certificate of
3 registration for purposes of the service occupation tax, but
4 shall be deemed to be sufficiently registered by virtue of
5 his being registered for purposes of the retailers'
6 occupation tax, the use tax, or the service use tax. Every
7 supplier maintaining a place of business in this State, if
8 not required to register for purposes of the retailers'
9 occupation tax, the use tax, or the service use tax, shall
10 apply to the Department (upon a form prescribed and furnished
11 by the Department) for a certificate of registration for
12 purposes of the service occupation tax. Every serviceman
13 maintaining a place of business in this State, if not
14 required to register for purposes of the retailers'
15 occupation tax, the use tax, or the service use tax, and
16 desiring to or required to pay the tax imposed by Article 20
17 directly to the Department, shall apply to the Department
18 (upon a form prescribed and furnished by the Department) for
19 a certificate of registration for purposes of the service
20 occupation tax.
21 Section 35-20. Certificate of registration; service use
22 tax. A serviceman maintaining a place of business in this
23 State, if required to register for purposes of the retailers'
24 occupation tax, for purposes of the use tax, or for purposes
25 of the service occupation tax, need not obtain an additional
26 certificate of registration for purposes of the service use
27 tax, but shall be deemed to be sufficiently registered by
28 virtue of his being registered for purposes of the retailers'
29 occupation tax, the use tax, or the service occupation tax.
30 Every serviceman maintaining a place of business in this
31 State, if not required to register for purposes of the
32 retailers' occupation tax, the use tax, or the service
33 occupation tax, shall apply to the Department (upon a form
-411- LRB9000671KDdvA
1 prescribed and furnished by the Department) for a certificate
2 of registration for purposes of the service use tax.
3 Section 45-5. Applicability of Article. The provisions
4 of this Article shall apply to the retailers' occupation tax,
5 the use tax, the service occupation tax, and the service use
6 tax. To the extent that any provision specifically applying
7 to the use tax, the service occupation tax, or the service
8 use tax is inconsistent with a general provision applying to
9 all of the taxes, the specific provision shall control.
10 Section 45-15. Records; use tax; service occupation tax;
11 service use tax. For purposes of the use tax, the service
12 occupation tax, and the service use tax, every retailer,
13 supplier, or serviceman required or authorized to collect
14 taxes hereunder and every person subject to the taxes imposed
15 by Article 15, Article 20, or Article 25 shall keep such
16 records, receipts, invoices and other pertinent books,
17 documents, memoranda and papers as the Department shall
18 require, in such form as the Department shall require. The
19 Department may adopt rules that establish requirements,
20 including record forms and formats, for records required to
21 be kept and maintained by taxpayers. For purposes of this
22 Section, "records" means all data maintained by the taxpayer,
23 including data on paper, microfilm, microfiche or any type of
24 machine-sensible data compilation. For the purpose of
25 administering and enforcing the provisions hereof, the
26 Department, or any officer or employee of the Department
27 designated, in writing, by the Director thereof, may hold
28 investigations and hearings concerning any matters covered
29 herein and may examine any books, papers, records, documents
30 or memoranda of (i) any retailer or purchaser bearing upon
31 the sales or purchases of tangible personal property, the
32 privilege of using which is taxed under Article 15, (ii) any
-412- LRB9000671KDdvA
1 supplier or serviceman bearing upon the sales of services or
2 the sales of tangible personal property to servicemen, or
3 (iii) any serviceman or any taxable purchaser for use for
4 purposes of Article 25, and may require the attendance of
5 such person or any officer or employee of such person, or of
6 any person having knowledge of the facts, and may take
7 testimony and require proof for its information.
8 Section 50-15. Use tax returns. For purposes of the use
9 tax, except as provided in Sections 50-5 through 50-140, on
10 or before the twentieth day of each calendar month, each
11 retailer required or authorized to collect the use tax shall
12 file a return for the preceding calendar month. Such return
13 shall be filed on forms prescribed by the Department and
14 shall furnish such information as the Department may
15 reasonably require.
16 Section 50-20. Service occupation tax returns. For
17 purposes of the service occupation tax, except as provided in
18 Sections 50-5 through 50-140, on or before the twentieth day
19 of each calendar month, each serviceman required or
20 authorized to collect the service occupation tax shall file a
21 return for the preceding calendar month in accordance with
22 reasonable rules and regulations to be promulgated by the
23 Department of Revenue. Such return shall be filed on a form
24 prescribed by the Department and shall contain such
25 information as the Department may reasonably require.
26 Section 50-25. Service use tax returns. For purposes of
27 the service use tax, except as provided in Sections 50-5
28 through 50-140, on or before the twentieth day of each
29 calendar month, each serviceman required or authorized to
30 collect the service use tax shall file a return for the
31 preceding calendar month in accordance with reasonable rules
-413- LRB9000671KDdvA
1 and regulations to be promulgated by the Department. Such
2 return shall be filed on a form prescribed by the Department
3 and shall contain such information as the Department may
4 reasonably require.
5 Section 50-70. Selling price of property on return.
6 (a) For purposes of the use tax, any retailer filing a
7 return under Sections 50-5 through 50-140 shall also include
8 (for the purpose of paying tax thereon) the total tax covered
9 by such return upon the selling price of tangible personal
10 property purchased by him at retail from a retailer, but as
11 to which the tax imposed by Article 15 was not collected from
12 the retailer filing such return, and such retailer shall
13 remit the amount of such tax to the Department when filing
14 such return.
15 (b) For purposes of the service use tax, any serviceman
16 filing a return hereunder shall also include the total tax
17 upon the selling price of tangible personal property
18 purchased for use by him as an incident to a sale of service,
19 and such serviceman shall remit the amount of such tax to the
20 Department when filing such return.
21 Section 50-75. Joint returns.
22 (a) For purposes of the use tax, if experience indicates
23 such action to be practicable, the Department may prescribe
24 and furnish a combination or joint return which will enable
25 retailers, who are required to file returns for the taxes
26 imposed in Article 10 and Article 15 to furnish all the
27 return information required for both taxes on the one form.
28 (b) For purposes of the service use tax, if experience
29 indicates such action to be practicable, the Department may
30 prescribe and furnish a combination or joint return which
31 will enable servicemen, who are required to file returns for
32 the taxes imposed by Articles 20 and 25, to furnish all the
-414- LRB9000671KDdvA
1 return information required by both taxes on the one form.
2 (c) For purposes of the service occupation tax, if
3 experience indicates such action to be practicable, the
4 Department may prescribe and furnish a combination or joint
5 return which will enable servicemen, who are required to file
6 returns for the tax imposed by Article 20 and also the taxes
7 imposed by Articles 10, 15, and 25, to furnish all the return
8 information required by all said taxes on the one form.
9 Section 50-110. Payment of tax by retailer or
10 serviceman.
11 (a) Except as provided in Sections 50-5 through 50-140,
12 the retailer filing the return under Sections 50-5 through
13 50-140 shall, at the time of filing such return, pay to the
14 Department the amount of tax imposed by this Code less a
15 discount of 2.1% prior to January 1, 1990 and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for the
18 expenses incurred in keeping records, preparing and filing
19 returns, remitting the tax and supplying data to the
20 Department on request. Any prepayment made pursuant to
21 Section 10-30 shall be included in the amount on which such
22 2.1% or 1.75% discount is computed.
23 (b) For purposes of the use tax, the service occupation
24 tax, and the service use tax, each retailer or serviceman
25 required or authorized to collect the taxes imposed by
26 Articles 15, 20, or 25 shall pay to the Department the amount
27 of such tax (except as otherwise provided) at the time when
28 he is required to file his return for the period during which
29 such tax was collected, less a discount of 2.1% prior to
30 January 1, 1990, and 1.75% on and after January 1, 1990, or
31 $5 per calendar year, whichever is greater, which is allowed
32 to reimburse the retailer or serviceman for expenses incurred
33 in collecting the tax, keeping records, preparing and filing
-415- LRB9000671KDdvA
1 returns, remitting the tax and supplying data to the
2 Department on request. For purposes of the use tax, this
3 subsection shall not apply to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered
5 with an agency of this State.
6 (c) In the case of retailers who report and pay the tax
7 on a transaction by transaction basis, as provided in
8 Sections 50-5 through 50-140, such discount shall be taken
9 with each such tax remittance instead of when such retailer
10 files his periodic return.
11 (d) For purposes of the use tax, a retailer need not
12 remit that part of any tax collected by him to the extent
13 that he is required to remit and does remit the tax imposed
14 by Article 10, with respect to the sale of the same property.
15 (e) For purposes of the service use tax, a serviceman
16 need not remit that part of any tax collected by him to the
17 extent that he is required to pay and does pay the tax
18 imposed by Article 20 with respect to his sale of service
19 involving the incidental transfer by him of the same
20 property.
21 Section 50-115. Conditional sales contract. For
22 purposes of the use tax and the service occupation tax, where
23 such tangible personal property is sold under a conditional
24 sales contract, or under any other form of sale wherein the
25 payment of the principal sum, or a part thereof, is extended
26 beyond the close of the period for which the return is filed,
27 the retailer or serviceman, in collecting the tax (except,
28 for purposes of the use tax only, as to motor vehicles,
29 watercraft, aircraft, and trailers that are required to be
30 registered with an agency of this State), may collect for
31 each tax return period, only the tax applicable to that part
32 of the selling price actually received during such tax return
33 period.
-416- LRB9000671KDdvA
1 Section 50-155. Requirement to file return.
2 (a) For purposes of the use tax, except as to motor
3 vehicles and aircraft, when tangible personal property is
4 purchased from a retailer for use in this State by a
5 purchaser who did not pay the tax imposed by Article 15 to
6 the retailer, and who does not file returns with the
7 Department as a retailer under Sections 50-5 through 50-140
8 of this Code, such purchaser (by the last day of the month
9 following the calendar month in which such purchaser makes
10 any payment upon the selling price of such property) shall,
11 except as provided in this Section, file a return with the
12 Department and pay the tax upon that portion of the selling
13 price so paid by the purchaser during the preceding calendar
14 month. When tangible personal property is purchased by a
15 lessor, under a lease for one year or longer, executed or in
16 effect at the time of purchase to an interstate carrier for
17 hire, who did not pay the tax imposed by Article 15 to the
18 retailer, such lessor (by the last day of the month following
19 the calendar month in which such property reverts to the use
20 of such lessor) shall file a return with the Department and
21 pay the tax upon the fair market value of such property on
22 the date of such reversion. Such return shall be filed on a
23 form prescribed by the Department and shall contain such
24 information as the Department may reasonably require. Such
25 return and payment from the purchaser shall be submitted to
26 the Department sooner than the last day of the month after
27 the month in which the purchase is made to the extent that
28 that may be necessary in order to secure the title to a motor
29 vehicle or the certificate of registration for an aircraft.
30 However, if the purchaser's annual use tax liability does not
31 exceed $600, the purchaser may file the return on an annual
32 basis on or before April 15th of the year following the year
33 use tax liability was incurred.
34 In addition with respect to motor vehicles and aircraft,
-417- LRB9000671KDdvA
1 a purchaser of such tangible personal property for use in
2 this State, who purchases such tangible personal property
3 from an out-of-state retailer, shall file with the
4 Department, upon a form to be prescribed and supplied by the
5 Department, a return for each such item of tangible personal
6 property purchased. Such return in the case of motor
7 vehicles and aircraft must show the name and address of the
8 seller, the name and address of purchaser, the amount of the
9 selling price including the amount allowed by the retailer
10 for traded in property, if any; the amount allowed by the
11 retailer for the traded-in tangible personal property, if
12 any, to the extent to which Section 5-120 of this Code allows
13 an exemption for the value of traded-in property; the balance
14 payable after deducting such trade-in allowance from the
15 total selling price; the amount of tax due from the purchaser
16 with respect to such transaction; the amount of tax collected
17 from the purchaser by the retailer on such transaction (or
18 satisfactory evidence that such tax is not due in that
19 particular instance if that is claimed to be the fact); the
20 place and date of the sale, a sufficient identification of
21 the property sold, and such other information as the
22 Department may reasonably require.
23 Such return shall be filed not later than 30 days after
24 such motor vehicle or aircraft is brought into this State for
25 use.
26 The return and tax remittance or proof of exemption from
27 the tax that is imposed by Article 15 may be transmitted to
28 the Department by way of the State agency with which, or
29 State officer with whom, the tangible personal property must
30 be titled or registered (if titling or registration is
31 required) if the Department and such agency or State officer
32 determine that this procedure will expedite the processing of
33 applications for title or registration.
34 With each such return, the purchaser shall remit the
-418- LRB9000671KDdvA
1 proper amount of tax due (or shall submit satisfactory
2 evidence that the sale is not taxable if that is the case),
3 to the Department or its agents, whereupon the Department
4 shall issue, in the purchaser's name, a tax receipt (or a
5 certificate of exemption if the Department is satisfied that
6 the particular sale is tax exempt) which such purchaser may
7 submit to the agency with which, or State officer with whom,
8 he must title or register the tangible personal property that
9 is involved (if titling or registration is required) in
10 support of such purchaser's application for an Illinois
11 certificate or other evidence of title or registration to
12 such tangible personal property.
13 (b) For purposes of the service use tax, where property
14 is acquired as an incident to the purchase of a service from
15 a serviceman for use in this State by a purchaser who did not
16 pay the tax herein imposed to the serviceman, and who does
17 not file returns with the Department as a serviceman under
18 Sections 50-5 through 50-140 of this Code, such purchaser (by
19 the last day of the month following the calendar month in
20 which such purchaser makes any payment upon the selling price
21 of such property) shall, except as hereinafter provided in
22 this Section, file a return with the Department and pay the
23 tax upon that portion of the selling price so paid by the
24 purchaser during the preceding calendar month. Such return
25 shall be filed on a form prescribed by the Department and
26 shall contain such information as the Department may
27 reasonably require.
28 (c) For purposes of the use tax and the service use tax,
29 when a purchaser pays a tax imposed by Article 15 or 25
30 directly to the Department, the Department (upon request
31 therefor from such purchaser) shall issue an appropriate
32 receipt to such purchaser showing that he has paid such tax
33 to the Department. Such receipt shall be sufficient to
34 relieve the purchaser from further liability for the tax to
-419- LRB9000671KDdvA
1 which such receipt may refer.
2 (d) For purposes of the use tax and the service use tax,
3 a user who is liable to pay use tax or service use tax
4 directly to the Department only occasionally and not on a
5 frequently recurring basis, and who is not required to file
6 returns with the Department as a retailer or serviceman under
7 Sections 50-5 through 50-140 of this Code need not register
8 with the Department. However, if such a user has a frequently
9 recurring direct use tax or service use tax liability to pay
10 to the Department, such user shall be required to register
11 with the Department on forms prescribed by the Department and
12 to obtain and display a certificate of registration from the
13 Department. In that event, all of the provisions of Sections
14 50-5 through 50-140 of this Code concerning the filing of
15 regular monthly, quarterly or annual tax returns and all of
16 the provisions of Sections 35-5 through 35-45 concerning the
17 requirements for registrants to post bond or other security
18 with the Department, as the provisions of such sections now
19 exist or may hereafter be amended, shall apply to such users
20 to the same extent as if such provisions were included
21 herein.
22 Section 55-10. Erroneous payment; creditor refund; use
23 tax; service occupation tax; service use tax.
24 (a) For purposes of the use tax, the service occupation
25 tax, and the service use tax, if it shall appear that an
26 amount of tax or penalty or interest has been paid in error
27 under Article 15, Article 20, or Article 25 to the Department
28 by (i) a purchaser, as distinguished from the retailer, (ii)
29 a serviceman, or (iii) a purchaser, as distinguished from the
30 serviceman, whether such amount be paid through a mistake of
31 fact or an error of law, such purchaser or serviceman may
32 file a claim for credit or refund with the Department. If it
33 shall appear that an amount of tax or penalty or interest has
-420- LRB9000671KDdvA
1 been paid in error to the Department under Article 15,
2 Article 20, or Article 25 by (i) a retailer who is required
3 or authorized to collect and remit the tax imposed by Article
4 15, (ii) a supplier who is required or authorized to collect
5 and remit the tax imposed by Article 20, or (iii) a
6 serviceman who is required or authorized to collect the tax
7 imposed by Article 25, whether such amount be paid through a
8 mistake of fact or an error of law, such retailer, supplier,
9 or serviceman may file a claim for credit or refund with the
10 Department, provided that no credit or refund shall be
11 allowed for any amount paid by any such retailer, supplier,
12 or serviceman unless it shall appear that he bore the burden
13 of such amount and did not shift the burden thereof to anyone
14 else (as in the case of a duplicated tax payment which the
15 retailer, supplier, or serviceman made to the Department and
16 did not collect from anyone else), or unless it shall appear
17 that he or she or his or her legal representative has
18 unconditionally repaid such amount to his vendee (1) who bore
19 the burden thereof and has not shifted such burden directly
20 or indirectly in any manner whatsoever; (2) who, if he has
21 shifted such burden, has repaid unconditionally such amount
22 to his or her own vendee; and (3) who is not entitled to
23 receive any reimbursement therefor from any other source than
24 from his vendor, nor to be relieved of such burden in any
25 other manner whatsoever.
26 (b) For purposes of the use tax and the service use tax,
27 if it shall appear that an amount of tax has been paid in
28 error under Article 15 or Article 25 by (i) the purchaser to
29 a retailer or (ii) the purchaser to a serviceman, who
30 retained such tax as reimbursement for his or her tax
31 liability on the same sale under Article 10, in the case of a
32 retailer, or Article 20, in the case of a serviceman, and who
33 remitted the amount involved to the Department under Article
34 10 or Article 20, whether such amount be paid through a
-421- LRB9000671KDdvA
1 mistake of fact or an error of law, the procedure for
2 recovering such tax shall be as prescribed in this Article
3 55.
4 (c) For purposes of the use tax, if a retailer who has
5 failed to pay use tax on gross receipts from retail sales is
6 required by the Department to pay such tax, such retailer,
7 without filing any formal claim with the Department, shall be
8 allowed to take credit against such use tax liability to the
9 extent, if any, to which such retailer has paid an amount
10 equivalent to retailers' occupation tax or has paid use tax
11 in error to his or her vendor or vendors of the same tangible
12 personal property which such retailer bought for resale and
13 did not first use before selling it, and no penalty or
14 interest shall be charged to such retailer on the amount of
15 such credit. However, when such credit is allowed to the
16 retailer by the Department, the vendor is precluded from
17 refunding any of that tax to the retailer and filing a claim
18 for credit or refund with respect thereto with the
19 Department. The provisions of this amendatory Act shall be
20 applied retroactively, regardless of the date of the
21 transaction.
22 Section 55-25. Determination of claim; hearing.
23 (a) As soon as practicable after a claim for credit or
24 refund is filed, the Department shall examine the same and
25 determine the amount of credit or refund to which the
26 claimant or the claimant's legal representative, in the event
27 that the claimant shall have died or become a person under
28 legal disability, is entitled and shall, by its Notice of
29 Tentative Determination of Claim, notify the claimant or his
30 or her legal representative of such determination, which
31 determination shall be prima facie correct. Proof of such
32 determination by the Department may be made at any hearing
33 before the Department or in any legal proceeding by a
-422- LRB9000671KDdvA
1 reproduced copy of the Department's record relating thereto,
2 in the name of the Department under the certificate of the
3 Director of Revenue. Such reproduced copy shall, without
4 further proof, be admitted into evidence before the
5 Department or in any legal proceeding and shall be prima
6 facie proof of the correctness of the Department's
7 determination, as shown therein. If such claimant, or the
8 legal representative of a deceased claimant or a claimant who
9 is a person under legal disability shall, for purposes of the
10 use tax, the service occupation tax, and the service use tax,
11 within 20 days after the Department's Notice of Tentative
12 Determination of Claim, or for purposes of the retailers'
13 occupation tax, within 60 days after the Department's Notice
14 of Tentative Determination of Claim, file a protest thereto
15 and request a hearing thereon, the Department shall give
16 notice to such claimant, or the legal representative of a
17 deceased claimant, or a claimant who is a person under legal
18 disability of the time and place fixed for such hearing, and
19 shall hold a hearing in conformity with the provisions of
20 this Code, and pursuant thereto shall issue its Final
21 Determination of the amount, if any, found to be due as a
22 result of such hearing, to such claimant, or the legal
23 representative of a deceased claimant or a claimant who is a
24 person under legal disability.
25 (b) For purposes of the retailers' occupation tax only,
26 the Department's Final Determination may be reviewed by the
27 proper Circuit Court, in the same manner, within the same
28 time, upon the same terms and conditions and to the same
29 extent, as provided by Section 77-5 of this Code.
30 Section 60-5. Tax collected as debt owed to State;
31 exception. The tax required to be collected by any retailer
32 pursuant to Article 15, any supplier pursuant to Article 20,
33 or any serviceman pursuant to Article 25, and any such tax
-423- LRB9000671KDdvA
1 collected by any retailer, supplier, or serviceman shall
2 constitute a debt owed by the retailer, supplier, or
3 serviceman to this State, except (i) when such retailer is
4 relieved of the duty of remitting such tax to the Department
5 by virtue of his being required to pay, and his in fact
6 paying, the tax imposed by Article 10 upon his gross receipts
7 from the same transaction, or (ii) when such serviceman is
8 relieved of the duty of remitting such tax to the Department
9 by virtue of his being required to pay, and his in fact
10 paying, the tax imposed by Article 20 upon his sale of
11 service involving the incidental transfer by him of the same
12 property.
13 Section 60-10. Foreign retailers; permit to collect tax.
14 For purposes of the use tax, the service occupation tax, and
15 the service use tax, the Department may, in its discretion,
16 upon application, authorize the collection of the tax herein
17 imposed by any retailer, supplier, or serviceman not
18 maintaining a place of business within this State, who, to
19 the satisfaction of the Department, furnishes adequate
20 security to insure collection and payment of the tax. Such
21 retailer, supplier, or serviceman shall be issued, without
22 charge, a permit to collect such tax. When so authorized, it
23 shall be the duty of such retailer, supplier, or serviceman
24 to collect the tax upon all tangible personal property sold
25 to his knowledge for use or for the purpose of resale as an
26 incident to the sale of a service within this State, in the
27 same manner and subject to the same requirements, including
28 the furnishing of a receipt to the purchaser or serviceman
29 (if demanded by the purchaser or serviceman), as a retailer,
30 supplier, or serviceman maintaining a place of business
31 within this State. The receipt given to the purchaser or
32 serviceman shall be sufficient to relieve him from further
33 tax liability for the tax to which such receipt may refer.
-424- LRB9000671KDdvA
1 Such permit may be revoked by the Department as provided in
2 this Code.
3 Section 60-15. Foreign retailers; revocation of permit
4 to collect tax. For purposes of the use tax and service use
5 tax, whenever any retailer or serviceman not maintaining a
6 place of business in this State, to whom a permit to collect
7 the taxes imposed by Article 15 and Article 25 has been
8 issued pursuant to Section 60-10, fails to comply with any of
9 the provisions hereof or any orders, rules or regulations of
10 the Department prescribed and adopted hereunder, or when the
11 Department considers the security furnished by such retailer
12 or serviceman to be inadequate or considers that the tax can
13 be collected more effectively from persons using such
14 property in this State, the Department may, upon notice and
15 hearing as herein provided, by order revoke the permit issued
16 to such retailer or serviceman. No order authorized by this
17 Section shall be made until the retailer or serviceman is
18 given an opportunity to be heard and to show cause why such
19 order shall not be made, and he shall be given at least 7
20 days' notice of the time, place and purpose of such hearing.
21 The Department shall have the power in its discretion to
22 issue a new permit pursuant to Section 60-10 after such
23 revocation.
24 Section 60-20. Receipts; list of agents.
25 (a) For purposes of the use tax, except as to motor
26 vehicles and other items of tangible personal property that
27 must be titled or registered under an Illinois law, but that
28 cannot be so titled or registered without a use tax receipt
29 or exemption determination from the Department, every
30 retailer maintaining a place of business in this State and
31 making sales of tangible personal property for use in this
32 State (whether those sales are made within or without this
-425- LRB9000671KDdvA
1 State) shall, when collecting the tax as provided in Section
2 15-20 of this Code from the purchaser, give to the purchaser
3 (if demanded by the purchaser) a receipt for the tax in the
4 manner and form prescribed by the Department.
5 (b) For purposes of the service occupation tax and the
6 service use tax, every supplier or serviceman maintaining a
7 place of business in this State and (i) making sales of
8 tangible personal property for the purpose of resale as an
9 incident to the sale of service taxable under this Code or
10 (ii) making sales of service involving the incidental
11 transfer of property for use in this State (whether those
12 sales are made within or without this State) shall, when
13 collecting the taxes as provided in Sections 20-20 and 25-20
14 of this Code from the serviceman or purchaser, give to the
15 serviceman or purchaser, if demanded by the serviceman or
16 purchaser, a receipt for the tax in the manner and form
17 provided by the Department.
18 (c) A receipt issued under this Section shall be
19 sufficient to relieve the purchaser or serviceman from
20 further liability for the tax to which the receipt may refer.
21 Each retailer, supplier, or serviceman shall list with the
22 Department the names and addresses of all of his or her
23 agents operating in this State and the location of any and
24 all of his or her distribution or sales houses, offices, or
25 other places of business in this State.
26 Section 80-10. Violations under the use tax, the service
27 occupation tax, and the service use tax.
28 (a) This Section applies to the use tax, the service
29 occupation tax, and the service use tax. When the amount due
30 is under $300, any person subject to the provisions hereof
31 who fails to file a return, or who violates any other
32 provision of Sections 50-5 through 50-140 or Section 50-155,
33 or who fails to keep books and records as required herein, or
-426- LRB9000671KDdvA
1 who files a fraudulent return, or who wilfully violates any
2 rule or regulation of the Department for the administration
3 and enforcement of the provisions hereof, or any officer or
4 agent of a corporation or manager, member, or agent of a
5 limited liability company subject hereto who signs a
6 fraudulent return filed on behalf of such corporation or
7 limited liability company, or any accountant or other agent
8 who knowingly enters false information on the return of any
9 taxpayer under Articles 15, 20, or 25, or any person who
10 violates any of the provisions of Sections 15-5, 20-5, 25-5,
11 60-20, or 80-20 hereof, or any purchaser who obtains a
12 registration number or resale number from the Department
13 through misrepresentation, or who represents to a seller that
14 such purchaser has a registration number or a resale number
15 from the Department when he knows that he does not, or who
16 uses his registration number or resale number to make a
17 seller believe that he is buying tangible personal property
18 for resale when such purchaser in fact knows that this is not
19 the case, is guilty of a Class 4 felony.
20 Any person who violates any provision of Sections 35-5
21 through 35-45, or who engages in the business of (i) selling
22 tangible personal property at retail or (ii) making sales of
23 service after his certificate of registration has been
24 revoked in accordance with Section 90-40, is guilty of a
25 Class 4 felony. Each day any such person is engaged in
26 business in violation of Sections 35-5 through 35-45, or
27 after his certificate of registration has been revoked,
28 constitutes a separate offense.
29 When the amount due is under $300, any person who accepts
30 money that is due to the Department under Articles 15, 20, or
31 25 from a taxpayer for the purpose of acting as the
32 taxpayer's agent to make the payment to the Department, but
33 who fails to remit such payment to the Department when due is
34 guilty of a Class 4 felony. Any such person who purports to
-427- LRB9000671KDdvA
1 make such payment by issuing or delivering a check or other
2 order upon a real or fictitious depository for the payment of
3 money, knowing that it will not be paid by the depository,
4 shall be guilty of a deceptive practice in violation of
5 Section 17-1 of the Criminal Code of 1961.
6 When the amount due is $300 or more, any person subject
7 to the provisions hereof who fails to file a return or who
8 violates any other provision of Sections 50-5 through 50-140
9 or Section 50-155 or who fails to keep books and records as
10 required herein or who files a fraudulent return, or who
11 wilfully violates any rule or regulation of the Department
12 for the administration and enforcement of the provisions
13 hereof, or any officer or agent of a corporation or manager,
14 member, or agent of a limited liability company subject
15 hereto who signs a fraudulent return filed on behalf of such
16 corporation or limited liability company, or any accountant
17 or other agent who knowingly enters false information on the
18 return of any taxpayer under Articles 15, 20, or 25 or any
19 person who violates any of the provisions of Sections 15-5,
20 20-5, 25-5, 60-20, or 80-20 or any purchaser who obtains a
21 registration number or resale number from the Department
22 through misrepresentation, or who represents to a seller that
23 such purchaser has a registration number or a resale number
24 from the Department when he knows that he does not or who
25 uses his registration number or resale number to make a
26 seller believe that he is buying tangible personal property
27 for resale when such purchaser in fact knows that this is not
28 the case, is guilty of a Class 3 felony.
29 When the amount due is $300 or more, any person who
30 accepts money that is due to the Department under Articles
31 15, 20, or 25 from a taxpayer for the purpose of acting as
32 the taxpayer's agent to make the payment to the Department,
33 but who fails to remit such payment to the Department when
34 due is guilty of a Class 3 felony. Any such person who
-428- LRB9000671KDdvA
1 purports to make such payment by issuing or delivering a
2 check or other order upon a real or fictitious depository for
3 the payment of money, knowing that it will not be paid by the
4 depository shall be guilty of a deceptive practice in
5 violation of Section 17-1 of the Criminal Code of 1961.
6 Any seller or serviceman who collects or attempts to
7 collect use tax, service occupation tax, or service use tax
8 measured by receipts or selling prices which such seller or
9 serviceman knows are not subject to use tax, service
10 occupation tax, or service use tax, or any serviceman who
11 collects or attempts to collect an amount (however
12 designated) which purports to reimburse such serviceman for
13 service occupation tax liability measured by receipts or
14 selling prices which such serviceman knows are not subject to
15 service occupation tax liability, or any seller or serviceman
16 who knowingly over-collects or attempts to over-collect use
17 tax, service occupation tax, or service use tax or an amount
18 purporting to be reimbursement for service occupation tax
19 liability in a transaction which is subject to the taxes that
20 are imposed by Articles 15, 20, or 25, shall be guilty of a
21 Class 4 felony for each offense. This paragraph does not
22 apply to an amount collected (i) by the seller or serviceman
23 as use tax or service use tax on receipts or selling prices
24 or (ii) by the serviceman as reimbursement for the
25 serviceman's service occupation tax liability on receipts or
26 selling prices which are subject to tax under Articles 15,
27 20, or 25 as long as such collection is made in compliance
28 with the tax collection brackets prescribed by the Department
29 in its rules and regulations.
30 A prosecution for any act in violation of this Section
31 may be commenced at any time within 3 years of the commission
32 of that act.
33 This Section does not apply if the violation in a
34 particular case also constitutes a criminal violation of
-429- LRB9000671KDdvA
1 Section 80-5.
2 (b) For purposes of the use tax and the service use tax,
3 any taxpayer or agent of a taxpayer who with the intent to
4 defraud purports to make a payment due to the Department by
5 issuing or delivering a check or other order upon a real or
6 fictitious depository for the payment of money, knowing that
7 it will not be paid by the depository, shall be guilty of a
8 deceptive practice in violation of Section 17-1 of the
9 Criminal Code of 1961.
10 (c) For purposes of the service occupation tax, if the
11 violation in a particular case also constitutes a criminal
12 violation of the provisions applying to the use tax then this
13 Section shall not apply to the violation of the provisions
14 applying to the service occupation tax.
15 (d) For purposes of the service use tax, if the
16 violation in a particular case also constitutes a criminal
17 violation of the provisions applying to the use tax or the
18 provisions applying to the service occupation tax then this
19 Section shall not apply to the violation of the provisions
20 applying to the service use tax.
21 Section 80-15. Misrepresentation of gasohol. For
22 purposes of the retailers' occupation tax and the use tax,
23 any person who knowingly sells or represents as gasohol any
24 fuel that does not qualify as gasohol under this Code is
25 guilty of a business offense and shall be fined not more than
26 $100 for each day that the sale or representation takes place
27 after notification from the Department of Agriculture that
28 the fuel in question does not qualify as gasohol.
29 Section 80-20. Advertisement of tax absorption. For
30 purposes of the use tax, the service occupation tax, and the
31 service use tax, it is unlawful for (a) any retailer to
32 advertise, hold out, or state to the public or to any
-430- LRB9000671KDdvA
1 purchaser, consumer, or user, (b) any supplier to advertise,
2 hold out, or state to the public or to any serviceman, or (c)
3 any serviceman to advertise, hold out, or state to the public
4 or to any service customer, purchaser, consumer, or user,
5 directly or indirectly, that the tax imposed by Article 15,
6 Article 20, or Article 25 or any part thereof will be assumed
7 or absorbed by the retailer, supplier, or serviceman or that
8 they will not be added to the selling price of the property
9 sold or transferred as an incident to a sale of service, or
10 if added that it or any part thereof will be refunded other
11 than when the retailer, supplier, or serviceman refunds the
12 selling price and tax because of the merchandise's being
13 returned to the retailer, supplier, or serviceman or other
14 than when the retailer, supplier, or serviceman credits or
15 refunds the tax to the purchaser, serviceman, or service
16 customer to support a claim filed with the Department under
17 this Code. Any person violating any of the provisions of
18 this Section within the State shall be guilty of a Class A
19 misdemeanor.
20 Section 85-10. Disposition of use tax receipts. This
21 Section shall apply to the use tax only. Beginning January
22 1, 1990, each month the Department shall pay into the State
23 and Local Sales Tax Reform Fund, a special fund in the State
24 Treasury which is hereby created, the net revenue realized
25 for the preceding month from the 1% tax on sales of food for
26 human consumption which is to be consumed off the premises
27 where it is sold (other than alcoholic beverages, soft drinks
28 and food which has been prepared for immediate consumption)
29 and prescription and nonprescription medicines, drugs,
30 medical appliances and insulin, urine testing materials,
31 syringes and needles used by diabetics.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the County and Mass Transit District Fund 4%
-431- LRB9000671KDdvA
1 of the net revenue realized for the preceding month from the
2 6.25% general rate on the selling price of tangible personal
3 property which is purchased outside Illinois at retail from a
4 retailer and which is titled or registered by an agency of
5 this State's government.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund, a
8 special fund in the State Treasury, 20% of the net revenue
9 realized for the preceding month from the 6.25% general rate
10 on the selling price of tangible personal property, other
11 than tangible personal property which is purchased outside
12 Illinois at retail from a retailer and which is titled or
13 registered by an agency of this State's government.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund 16% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Of the remainder of the moneys received by the Department
22 pursuant to Article 15, disposition of funds shall be made as
23 provided in Section 85-25.
24 Subject to payment of amounts into the Build Illinois
25 Fund as provided in this Section and Section 85-25,
26 distribution of funds shall be made as provided in Section
27 85-30.
28 Subject to payment of amounts into the Build Illinois
29 Fund and the McCormick Place Expansion Project Fund pursuant
30 to this Article, each month the Department shall pay into the
31 Local Government Distributive Fund .4% of the net revenue
32 realized for the preceding month from the 5% general rate, or
33 .4% of 80% of the net revenue realized for the preceding
34 month from the 6.25% general rate, as the case may be, on the
-432- LRB9000671KDdvA
1 selling price of tangible personal property which amount
2 shall, subject to appropriation, be distributed as provided
3 in Section 2 of the State Revenue Sharing Act. No payments or
4 distributions pursuant to this paragraph shall be made if the
5 tax imposed by Article 15 on photoprocessing products is
6 declared unconstitutional, or if the proceeds from such tax
7 are unavailable for distribution because of litigation.
8 Subject to payment of amounts into the Build Illinois
9 Fund, the McCormick Place Expansion Project Fund, and the
10 Local Government Distributive Fund pursuant to this Article,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 15, 75% thereof shall be paid into the
18 State Treasury and 25% shall be reserved in a special account
19 and used only for the transfer to the Common School Fund as
20 part of the monthly transfer from the General Revenue Fund in
21 accordance with Section 8a of the State Finance Act.
22 As soon as possible after the first day of each month,
23 upon certification of the Department of Revenue, the
24 Comptroller shall order transferred and the Treasurer shall
25 transfer from the General Revenue Fund to the Motor Fuel Tax
26 Fund an amount equal to 1.7% of 80% of the net revenue
27 realized under Article 15 for the second preceding month;
28 except that this transfer shall not be made for the months
29 February through June of 1992.
30 Net revenue realized for a month shall be the revenue
31 collected by the State pursuant to Article 15, less the
32 amount paid out during that month as refunds to taxpayers for
33 overpayment of liability.
-433- LRB9000671KDdvA
1 Section 85-15. Distribution of service occupation tax
2 receipts. This Section shall apply to the service occupation
3 tax only. Beginning January 1, 1990, each month the
4 Department shall pay into the Local Government Tax Fund the
5 revenue realized for the preceding month from the 1% tax on
6 sales of food for human consumption which is to be consumed
7 off the premises where it is sold (other than alcoholic
8 beverages, soft drinks and food which has been prepared for
9 immediate consumption) and prescription and nonprescription
10 medicines, drugs, medical appliances and insulin, urine
11 testing materials, syringes and needles used by diabetics.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the County and Mass Transit District Fund 4%
14 of the revenue realized for the preceding month from the
15 6.25% general rate.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the Local Government Tax Fund 16% of the
18 revenue realized for the preceding month from the 6.25%
19 general rate on transfers of tangible personal property.
20 Of the remainder of the moneys received by the Department
21 pursuant to Article 20, disposition of funds shall be made as
22 provided in Section 85-25.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in this Section and Section 85-25,
25 disposition of funds shall be made as provided in Section
26 85-30.
27 Subject to payment of amounts into the Build Illinois
28 Fund and the McCormick Place Expansion Project Fund pursuant
29 to this Article, each month the Department shall pay into the
30 Local Government Distributive Fund 0.4% of the net revenue
31 realized for the preceding month from the 5% general rate or
32 0.4% of 80% of the net revenue realized for the preceding
33 month from the 6.25% general rate, as the case may be, on the
34 selling price of tangible personal property which amount
-434- LRB9000671KDdvA
1 shall, subject to appropriation, be distributed as provided
2 in Section 2 of the State Revenue Sharing Act. No payments
3 or distributions pursuant to this paragraph shall be made if
4 the tax imposed by Article 20 on photoprocessing products is
5 declared unconstitutional, or if the proceeds from such tax
6 are unavailable for distribution because of litigation.
7 Subject to payment of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, and the
9 Local Government Distributive Fund pursuant to this Article,
10 beginning July 1, 1993, the Department shall each month pay
11 into the Illinois Tax Increment Fund 0.27% of 80% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property.
15 Remaining moneys received by the Department pursuant to
16 Article 20 shall be paid into the General Revenue Fund of the
17 State Treasury.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Article 20 for the second preceding
24 month; except that this transfer shall not be made for the
25 months February through June, 1992.
26 For purposes of this Section net revenue realized for a
27 month shall be the revenue collected by the State pursuant to
28 Article 20, less the amount paid out during that month as
29 refunds to taxpayers for overpayment of liability.
30 Section 85-20. Distribution of funds from the service
31 use tax. This Section shall apply to the service use tax
32 only. Beginning January 1, 1990, each month the Department
33 shall pay into the State and Local Tax Reform Fund, a special
-435- LRB9000671KDdvA
1 fund in the State Treasury, the net revenue realized for the
2 preceding month from the 1% tax on sales of food for human
3 consumption which is to be consumed off the premises where it
4 is sold (other than alcoholic beverages, soft drinks and food
5 which has been prepared for immediate consumption) and
6 prescription and nonprescription medicines, drugs, medical
7 appliances and insulin, urine testing materials, syringes and
8 needles used by diabetics.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the State and Local Sales Tax Reform Fund 20%
11 of the net revenue realized for the preceding month from the
12 6.25% general rate on transfers of tangible personal
13 property, other than tangible personal property which is
14 purchased outside Illinois at retail from a retailer and
15 which is titled or registered by an agency of this State's
16 government.
17 Of the remainder of the moneys received by the Department
18 pursuant to Article 25, disposition of funds shall be made as
19 provided in Section 85-25.
20 Subject to payment of amounts into the Build Illinois
21 Fund as provided in this Section and Section 85-25,
22 distribution of funds shall be made as provided in Section
23 85-30.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to this Article, each month the Department shall pay into the
27 Local Government Distributive Fund 0.4% of the net revenue
28 realized for the preceding month from the 5% general rate or
29 0.4% of 80% of the net revenue realized for the preceding
30 month from the 6.25% general rate, as the case may be, on the
31 selling price of tangible personal property which amount
32 shall, subject to appropriation, be distributed as provided
33 in Section 2 of the State Revenue Sharing Act. No payments or
34 distributions pursuant to this paragraph shall be made if the
-436- LRB9000671KDdvA
1 tax imposed by Article 25 on photo processing products is
2 declared unconstitutional, or if the proceeds from such tax
3 are unavailable for distribution because of litigation.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project Fund, and the
6 Local Government Distributive Fund pursuant to this Article,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 All remaining moneys received by the Department pursuant
13 to Article 25 shall be paid into the General Revenue Fund of
14 the State Treasury.
15 As soon as possible after the first day of each month,
16 upon certification of the Department of Revenue, the
17 Comptroller shall order transferred and the Treasurer shall
18 transfer from the General Revenue Fund to the Motor Fuel Tax
19 Fund an amount equal to 1.7% of 80% of the net revenue
20 realized under Article 25 for the second preceding month;
21 except that this transfer shall not be made for the months
22 February through June, 1992.
23 For purposes of this Section, net revenue realized for a
24 month shall be the revenue collected by the State pursuant to
25 Article 25, less the amount paid out during that month as
26 refunds to taxpayers for overpayment of liability.
27 Section 90-25. Delivery in State.
28 (a) For purposes of the use tax and the service use tax,
29 evidence that tangible personal property was sold by any
30 person for delivery to a person residing or engaged in
31 business in this State shall be prima facie evidence that
32 such tangible personal property was sold for use in this
33 State.
-437- LRB9000671KDdvA
1 (b) For purposes of the service occupation tax, evidence
2 that tangible personal property was sold by any supplier for
3 delivery to a person residing or engaged in business in this
4 State shall be prima facie evidence that such tangible
5 personal property was sold for the purpose of resale as an
6 incident to a sale of service taxable under Article 20.
7 Section 90-30. Tax stated as distinct item from selling
8 price.
9 (a) The use tax imposed by Article 15 shall when
10 collected be stated as a distinct item separate and apart
11 from the selling price of the tangible personal property.
12 However, where it is not possible to state the sales tax
13 separately in situations such as sales from vending machines
14 or sales of liquor by the drink the Department may by rule
15 exempt such sales from this requirement so long as purchasers
16 are notified by a sign that the tax is included in the
17 selling price.
18 (b) For purposes of the service use tax, except as
19 provided in subsection (c) of this Section, the selling price
20 of each item of tangible personal property transferred
21 incident to a sale of service may be stated as a distinct
22 item by the serviceman to the service customer and the
23 service use tax imposed by Article 25 shall when collected be
24 stated as a distinct item separate and apart from the selling
25 price of the tangible personal property. If the selling
26 price of each item of tangible personal property transferred
27 incidental to a sale of service is not stated as a separate
28 item on the serviceman's billing to the service customer,
29 then the service use tax imposed by Article 25 shall be based
30 on 50% of the serviceman's entire billing to the service
31 customer.
32 (c) For purposes of the service use tax, when a
33 serviceman contracts to design, develop and produce special
-438- LRB9000671KDdvA
1 order machinery or equipment, the service use tax imposed by
2 Article 25 shall be based on the serviceman's cost price of
3 the tangible personal property transferred incident to the
4 completion of the contract.
5 Section 90-35. Severability. If any clause, sentence,
6 Section, provision or part of this Code or the application
7 thereof to any person or circumstance shall be adjudged to be
8 unconstitutional, the remainder of this Code or its
9 application to persons or circumstances other than those to
10 which it is held invalid, shall not be affected thereby. In
11 particular, if any provision which exempts or has the effect
12 of exempting some class of users or servicemen or some kind
13 of use or service from the taxes imposed by this Code should
14 be held to constitute or to result in an invalid
15 classification or to be unconstitutional for some other
16 reason, such provision shall be deemed to be severable, with
17 the remainder of this Code without said provision being held
18 constitutional.
19 Section 90-40. Applicability of the Uniform Penalty and
20 Interest Act. All of the provisions of Section 3-7 of the
21 Uniform Penalty and Interest Act, which are not inconsistent
22 with this Code, shall apply, as far as practicable, to the
23 subject matter of this Code to the same extent as if such
24 provisions were included herein.
25 Section 1-5. Applicability. Unless otherwise specified
26 in this Code, the provisions of each Section or subsection of
27 this Code apply to all of the taxes imposed under Articles
28 10, 15, 20, and 25. For example, if a Section or subsection
29 begins with the phrase "for purposes of the retailers'
30 occupation tax and use tax", the provisions of that Section
31 or subsection apply only to the retailers' occupation tax
-439- LRB9000671KDdvA
1 imposed in Article 10 and the use tax imposed in Article 15.
2 Those provisions would not apply to the service occupation
3 tax imposed in Article 20 or the service use tax imposed in
4 Article 25. If no language in a Section or subsection of
5 this Code specifically limits its application, then the
6 provisions of that Section or subsection apply to the
7 retailers' occupation tax imposed in Article 10, the use tax
8 imposed in Article 15, the service occupation tax imposed in
9 Article 20, and the service use tax imposed in Article 25.
10 (b) This Code, as enacted, is not intended to make any
11 substantive changes in the meaning, effect, or application of
12 the continued and codified provisions of the Retailers'
13 Occupation Tax Act, the Use Tax Act, the Service Occupation
14 Tax Act, or the Service Use Tax Act.
15 PART 15. USE TAX ACT
16 DISPOSITION CHART
17 USE TAX ACT
18 Use Tax Act
19 (35/105) Occupation and Use Tax Code
20 -------------------------------------------------------------
21 Sec. 1a. Sec. 5-105. Retailer
22 Sec. 2. Sec. 5-145. Use
23 Sec. 5-150. Watercraft
24 Sec. 5-85. Purchase at retail
25 Sec. 5-95. Purchaser
26 Sec. 5-115. Sale at retail
27 Sec. 5-120. Selling price
28 Sec. 5-55. Like kind and character
29 Sec. 5-35. Department
30 Sec. 5-65. Person
-440- LRB9000671KDdvA
1 Sec. 5-105. Retailer
2 Sec. 5-110. Retailer maintaining a
3 business in State
4 Sec. 5-10. Bulk vending machine
5 Sec. 2a. Sec. 5-75. Pollution control facilities
6 Sec. 30-5. Pollution control facilities
7 Sec. 2a-1. Sec. 5-60. Low sulfur dioxide emission
8 coal fueled devices
9 Sec. 30-15. Low sulfur dioxide emission
10 coal fueled devices
11 Sec. 90-45. Low sulfur dioxide emission
12 coal fueled devices;
13 declaratory provisions
14 Sec. 2b. Sec. 5-120. Selling price
15 Sec. 2c. Sec. 5-25. Corporations organized for
16 educational purposes
17 Sec. 3. Sec. 15-5. Tax imposed
18 Sec. 3-5(1). Sec. 30-165. Property sold for the benefit
19 of the elderly
20 Sec. 3-5(2). Sec. 30-175. County fair association
21 Sec. 3-5(3). Sec. 30-160. Property sold to non-profit
22 music organization
23 Sec. 3-5(4). Sec. 30-170. Property sold for charity,
24 religion or education
25 Sec. 3-5(5). Sec. 30-110. Passenger car subject to
26 replacement tax
27 Sec. 3-5(6). Sec. 30-90. Graphic arts machinery and
28 equipment
-441- LRB9000671KDdvA
1 Sec. 3-5(7). Sec. 30-60. Farm chemicals
2 Sec. 3-5(8). Sec. 30-205. Legal tender
3 Sec. 3-5(9). Sec. 30-155. Personal property sold by
4 students
5 Sec. 3-5(10). Sec. 30-105. Motor vehicle used for renting
6 Sec. 3-5(11). Sec. 30-65. Farm machinery and equipment
7 Sec. 3-5(12). Sec. 30-125. Petroleum products sold to
8 air carrier
9 Sec. 3-5(13). Sec. 30-200. Mandatory service charge
10 Sec. 3-5(14). Sec. 30-75. Oil field equipment
11 Sec. 3-5(15). Sec. 30-85. Photoprocessing machinery and
12 equipment
13 Sec. 3-5(16). Sec. 30-80. Coal exploration equipment
14 Sec. 3-5(17). Sec. 30-70. Distillation machinery and
15 equipment
16 Sec. 3-5(18). Sec. 30-95. Manufacturing and assembling
17 machinery
18 Sec. 3-5(19). Sec. 30-210. Florist
19 Sec. 3-5(20). Sec. 30-55. Semen
20 Sec. 3-5(21). Sec. 30-50. Horses
21 Sec. 3-5(22). Sec. 30-185. Computers for hospitals
22 Sec. 3-5(23). Sec. 30-190. Property sold for lease to
23 government
24 Sec. 3-5(24). Sec. 30-180. Property donated for
25 disaster relief
-442- LRB9000671KDdvA
1 Sec. 3-5(25). Sec. 30-45. Personal property used in
2 infrastructure repairs
3 Sec. 3-5.5. Sec. 30-195. Food and drug sold by
4 non-profit organization
5 Sec. 3-10. Sec. 15-15. Rate of tax
6 Sec. 3-15. Sec. 5-70. Photoprocessing
7 Sec. 3-20. Sec. 5-15. Bullion
8 Sec. 3-25. Sec. 5-20. Computer software
9 Sec. 3-30. Sec. 5-45. Graphic arts production
10 Sec. 3-35. Sec. 5-80. Production agriculture
11 Sec. 3-40. Sec. 5-40. Gasohol
12 Sec. 80-15. Misrepresentation of gasohol
13 Sec. 3-45. Sec. 15-20. Collection
14 Sec. 3-50. Sec. 30-100. Manufacturing and assembling
15 exemption
16 Sec. 3-55(a). Sec. 30-220. Multistate exemption
17 Sec. 3-55(b). Sec. 30-140. Rolling stock; personal
18 property
19 Sec. 3-55(c). Sec. 30-145. Rolling stock; proceeds
20 from sales
21 Sec. 3-55(d). Sec. 30-220. Multistate exemption
22 Sec. 3-55(e). Sec. 30-220. Multistate exemption
23 Sec. 3-55(f). Sec. 30-220. Multistate exemption
24 Sec. 3-55(g). Sec. 30-135. Property sold to rail
25 common carrier
-443- LRB9000671KDdvA
1 Sec. 3-55(h). Sec. 30-115. Motor vehicle sold to
2 non-resident
3 Sec. 3-60. Sec. 30-150. Rolling stock exemption
4 Sec. 3-65. Sec. 15-25. R.O.T. nontaxability
5 Sec. 3-70. Sec. 30-225. Property acquired by
6 non-resident
7 Sec. 5-5. Acquired outside this State
8 Sec. 3-75. Sec. 15-30. Serviceman transfer
9 Sec. 3-80. Sec. 90-15. Liability because of
10 amendatory Act
11 Sec. 3-85. Sec. 30-230. Manufacturer's purchase
12 credit
13 Sec. 3-90. Sec. 90-20. Sunset of exemptions, credits,
14 and deductions
15 Sec. 3a. Sec. 15-35. Method of stating tax
16 Sec. 4. Sec. 90-25. Delivery in State
17 Sec. 5. Sec. 60-20. Receipts; list of agents
18 Sec. 6. Sec. 35-10. Use tax
19 Sec. 35-30. Issuance of certificate of
20 registration
21 Sec. 60-10. Foreign retailers; permit to
22 collect tax
23 Sec. 7. Sec. 80-20. Advertisement of tax
24 absorption
25 Sec. 8. Sec. 60-5. Tax collected as debt owed
26 to State; exception
27 Sec. 9. Sec. 50-110. Payment of tax by retailer or
28 serviceman
-444- LRB9000671KDdvA
1 Sec. 50-115. Conditional sales contract
2 Sec. 50-15. Use tax returns
3 Sec. 50-30. Quarterly returns
4 Sec. 50-40. Failure to sign a return
5 Sec. 50-100. Electronic funds transfer
6 Sec. 50-120. Quarter-monthly payments
7 Sec. 50-125. Credit memorandum
8 Sec. 50-35. Filing returns quarterly or
9 annually
10 Sec. 50-60. Cessation of business
11 Sec. 50-80. Separate return for certain
12 registered property
13 Sec. 5-150. Watercraft
14 Sec. 50-90. Transaction reporting return
15 Sec. 50-105. Refunds
16 Sec. 50-70. Selling price of property
17 on return
18 Sec. 50-75. Joint returns
19 Sec. 50-65. Multiple businesses
20 Sec. 85-10. Disposition of use tax
21 receipts
22 Sec. 85-25. Build Illinois Fund
23 Sec. 85-30. McCormick Place Expansion
24 Project Fund
25 Sec. 50-135. Manufacturer, importer, or
26 wholesaler payment
27 Sec. 10. Sec. 50-155. Requirement to file return
28 Sec. 10a. Sec. 35-70. Exemption from bonding
29 Sec. 11. Sec. 45-15. Records; taxes
30 Sec. 12. Sec. 90-40. Applicability of Uniform
31 Penalty and Interest Act
32 Sec. 12a. Sec. 90-5. Appointment of Secretary
-445- LRB9000671KDdvA
1 of State
2 Sec. 12b. Sec. 75-5. Application of Administrative
3 Procedure Act
4 Sec. 13. Sec. 60-15. Foreign retailers;
5 revocation of permit
6 to collect tax
7 Sec. 14. Sec. 80-10. Violations
8 Sec. 15. Sec. 15-10. Tax additional
9 Sec. 18. Sec. 90-35. Severability
10 Sec. 19. Sec. 55-10. Erroneous payment; creditor
11 refund; taxes
12 Sec. 55-15. Credit or refund; payment and
13 interest
14 Sec. 55-20. Claims for credit or refund
15 Sec. 20. Sec. 55-25. Determination of claim;
16 hearing
17 Sec. 55-30. Final determination of claim
18 Sec. 21. Sec. 55-35. Limitations
19 Sec. 22. Sec. 55-40. Application of credit or
20 refund against tax
21 (35 ILCS 105/) (Use Tax Act.)
22 Title: An Act in relation to a tax upon the privilege of
23 using tangible personal property in this State.
24 Cite: 35 ILCS 105/1 et seq.
25 From: Ch. 120, par. 439.1 et seq.
26 Source: L. 1955, p. 2027. Title amended by L. 1959, p. 654.
27 Date: Approved July 14, 1955.
28 Short title: Use Tax Act.
29 (35 ILCS 105/1) (from Ch. 120, par. 439.1)
-446- LRB9000671KDdvA
1 Section 1-1. Sec. 1. Short title. This Act shall be known
2 and may be cited as the Occupation and Use Tax Code "Use Tax
3 Act".
4 (Source: Laws 1955, p. 2027.)
5 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
6 Section 5-105. Retailer.
7 (a) For purposes of the use tax, "retailer" means and
8 includes every person engaged in the business of making sales
9 at retail as defined in Section 5-115.
10 A person who holds himself or herself out as being
11 engaged (or who habitually engages) in selling tangible
12 personal property at retail is a retailer hereunder with
13 respect to such sales (and not primarily in a service
14 occupation) notwithstanding the fact that such person designs
15 and produces such tangible personal property on special order
16 for the purchaser and in such a way as to render the property
17 of value only to such purchaser, if such tangible personal
18 property so produced on special order serves substantially
19 the same function as stock or standard items of tangible
20 personal property that are sold at retail.
21 A person whose activities are organized and conducted
22 primarily as a not-for-profit service enterprise, and who
23 engages in selling tangible personal property at retail
24 (whether to the public or merely to members and their guests)
25 is a retailer with respect to such transactions, excepting
26 only a person organized and operated exclusively for
27 charitable, religious or educational purposes either (1), to
28 the extent of sales by such person to its members, students,
29 patients or inmates of tangible personal property to be used
30 primarily for the purposes of such person, or (2), to the
31 extent of sales by such person of tangible personal property
32 which is not sold or offered for sale by persons organized
33 for profit. The selling of school books and school supplies
-447- LRB9000671KDdvA
1 by schools at retail to students is not "primarily for the
2 purposes of" the school which does such selling. This
3 paragraph does not apply to nor subject to taxation
4 occasional dinners, social or similar activities of a person
5 organized and operated exclusively for charitable, religious
6 or educational purposes, whether or not such activities are
7 open to the public.
8 A person who is the recipient of a grant or contract
9 under Title VII of the Older Americans Act of 1965 (P.L.
10 92-258) and serves meals to participants in the federal
11 Nutrition Program for the Elderly in return for contributions
12 established in amount by the individual participant pursuant
13 to a schedule of suggested fees as provided for in the
14 federal Act is not a retailer under Article 15 with respect
15 to such transactions.
16 Persons who engage in the business of transferring
17 tangible personal property upon the redemption of trading
18 stamps are retailers hereunder when engaged in such business.
19 The isolated or occasional sale of tangible personal
20 property at retail by a person who does not hold himself out
21 as being engaged (or who does not habitually engage) in
22 selling such tangible personal property at retail or a sale
23 through a bulk vending machine does not make such person a
24 retailer hereunder. However, any person who is engaged in a
25 business which is not subject to the tax imposed by Article
26 10 because of involving the sale of or a contract to sell
27 real estate or a construction contract to improve real
28 estate, but who, in the course of conducting such business,
29 transfers tangible personal property to users or consumers in
30 the finished form in which it was purchased, and which does
31 not become real estate, under any provision of a construction
32 contract or real estate sale or real estate sales agreement
33 entered into with some other person arising out of or because
34 of such nontaxable business, is a retailer to the extent of
-448- LRB9000671KDdvA
1 the value of the tangible personal property so transferred.
2 If, in such transaction, a separate charge is made for the
3 tangible personal property so transferred, the value of such
4 property, for the purposes of Article 15, is the amount so
5 separately charged, but not less than the cost of such
6 property to the transferor; if no separate charge is made,
7 the value of such property, for the purposes of Article 15,
8 is the cost to the transferor of such tangible personal
9 property.
10 (b) For purposes of the retailers' occupation tax and
11 the use tax, Sec. 1a. a person who is engaged in the business
12 of leasing or renting motor vehicles to others and who, in
13 connection with such business sells any used motor vehicle to
14 a purchaser for his use and not for the purpose of resale, is
15 a retailer engaged in the business of selling tangible
16 personal property at retail under Articles 10 and 15 this Act
17 to the extent of the value of the vehicle sold. For the
18 purpose of this Section, "motor vehicle" has the meaning
19 prescribed in Section 1-157 of The Illinois Vehicle Code, as
20 now or hereafter amended. (Nothing provided herein shall
21 affect liability incurred under Articles 10 and 15 this Act
22 because of the sale at retail of such motor vehicles to a
23 lessor or the use of such motor vehicles by as a lessor.)
24 (Source: P.A. 80-598.)
25 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
26 Section 5-145. Use. Sec. 2.
27 (a) For purposes of the use tax, "use" means the
28 exercise by any person of any right or power over tangible
29 personal property incident to the ownership of that property,
30 except that it does not include the sale of such property in
31 any form as tangible personal property in the regular course
32 of business to the extent that such property is not first
33 subjected to a use for which it was purchased, and does not
-449- LRB9000671KDdvA
1 include the use of such property by its owner for
2 demonstration purposes: provided that the property purchased
3 is deemed to be purchased for the purpose of resale, despite
4 first being used, to the extent to which it is resold as an
5 ingredient of an intentionally produced product or by-product
6 of manufacturing. "Use" does not mean the demonstration use
7 or interim use of tangible personal property by a retailer
8 before he sells that tangible personal property. For
9 watercraft or aircraft, if the period of demonstration use or
10 interim use by the retailer exceeds 18 months, the retailer
11 shall pay on the retailers' original cost price the tax
12 imposed by Article 15 this Act, and no credit for that tax is
13 permitted if the watercraft or aircraft is subsequently sold
14 by the retailer. "Use" does not mean the physical
15 incorporation of tangible personal property, to the extent
16 not first subjected to a use for which it was purchased, as
17 an ingredient or constituent, into other tangible personal
18 property (1) (a) which is sold in the regular course of
19 business or (2) (b) which the person incorporating such
20 ingredient or constituent therein has undertaken at the time
21 of such purchase to cause to be transported in interstate
22 commerce to destinations outside the State of Illinois:
23 provided that the property purchased is deemed to be
24 purchased for the purpose of resale, despite first being
25 used, to the extent to which it is resold as an ingredient of
26 an intentionally produced product or by-product of
27 manufacturing.
28 (b) For purposes of the service use tax, "use" means the
29 exercise by any person of any right or power over tangible
30 personal property incident to the ownership of that property,
31 but does not include the sale or use for demonstration by him
32 of that property in any form as tangible personal property in
33 the regular course of business. "Use" does not mean the
34 interim use of tangible personal property nor the physical
-450- LRB9000671KDdvA
1 incorporation of tangible personal property, as an ingredient
2 or constituent, into other tangible personal property, (1)
3 which is sold in the regular course of business or (2) which
4 the person incorporating such ingredient or constituent
5 therein has undertaken at the time of such purchase to cause
6 to be transported in interstate commerce to destinations
7 outside the State of Illinois.
8 Section 5-150. Watercraft. For purposes of the
9 retailers' occupation tax and the use tax, "watercraft" means
10 a Class 2, Class 3, or Class 4 watercraft as defined in
11 Section 3-2 of the Boat Registration and Safety Act, a
12 personal watercraft, or any boat equipped with an inboard
13 motor.
14 Section 5-85. Purchase at retail. For purposes of the
15 use tax, "purchase at retail" means the acquisition of the
16 ownership of or title to tangible personal property through a
17 sale at retail.
18 Section 5-95. Purchaser.
19 (a) For purposes of the retailers' occupation tax and
20 the use tax, "purchaser" means anyone who, through a sale at
21 retail, acquires the ownership of or title to tangible
22 personal property for a valuable consideration.
23 (b) For purposes of the service use tax, "purchaser"
24 means anyone who, through a sale of service, acquires the
25 ownership of, or title to, any tangible personal property.
26 Section 5-115. Sale at retail.
27 (a) "Sale at retail" means any transfer of the ownership
28 of or title to tangible personal property to a purchaser, for
29 the purpose of use or consumption, and not for the purpose of
30 resale in any form as tangible personal property to the
-451- LRB9000671KDdvA
1 extent not first subjected to a use for which it was
2 purchased, for a valuable consideration: provided that the
3 property purchased is deemed to be purchased for the purpose
4 of resale, despite first being used, to the extent to which
5 it is resold as an ingredient of an intentionally produced
6 product or byproduct by-product of manufacturing. For this
7 purpose, slag produced as an incident to manufacturing pig
8 iron or steel and sold is considered to be an intentionally
9 produced byproduct by-product of manufacturing. "Sale at
10 retail" shall be construed to include includes any such
11 transfer, whether made for or without a valuable
12 consideration, for resale in any form as tangible personal
13 property unless made in compliance with Section 35-50 2c of
14 this Code the Retailers' Occupation Tax Act, as incorporated
15 by reference into Section 12 of this Act. Transactions
16 whereby the possession of the property is transferred but the
17 seller retains the title as security for payment of the
18 selling price shall be deemed to be are sales.
19 "Sale at retail" shall also be construed to include any
20 Illinois florist's sales transaction in which the purchase
21 order is received in Illinois by a florist and the sale is
22 for use or consumption, but the Illinois florist has a
23 florist in another state deliver the property to the
24 purchaser or the purchaser's donee in such other state.
25 The purchase, employment and transfer of such tangible
26 personal property as newsprint and ink for the primary
27 purpose of conveying news (with or without other information)
28 is not a purchase, use or sale of service or of tangible
29 personal property.
30 (b) For purposes of the retailers' occupation tax, the
31 service occupation tax, and the service use tax, "sale at
32 retail" shall be construed to include any transfer of the
33 ownership of or title to tangible personal property to a
34 purchaser, for use or consumption by any other person to whom
-452- LRB9000671KDdvA
1 such purchaser may transfer the tangible personal property
2 without a valuable consideration.
3 Sales of tangible personal property, which property, to
4 the extent not first subjected to a use for which it was
5 purchased, as an ingredient or constituent, goes into and
6 forms a part of tangible personal property subsequently the
7 subject of a "sale at retail", are not sales at retail as
8 defined in this Code: provided that the property purchased is
9 deemed to be purchased for the purpose of resale, despite
10 first being used, to the extent to which it is resold as an
11 ingredient of an intentionally produced product or byproduct
12 of manufacturing.
13 A person whose activities are organized and conducted
14 primarily as a not-for-profit service enterprise, and who
15 engages in selling tangible personal property at retail
16 (whether to the public or merely to members and their guests)
17 is engaged in the business of selling tangible personal
18 property at retail with respect to such transactions,
19 excepting only a person organized and operated exclusively
20 for charitable, religious or educational purposes either (1)
21 to the extent of sales by such person to its members,
22 students, patients or inmates of tangible personal property
23 to be used primarily for the purposes of such person, or (2)
24 to the extent of sales by such person of tangible personal
25 property which is not sold or offered for sale by persons
26 organized for profit. The selling of school books and school
27 supplies by schools at retail to students is not "primarily
28 for the purposes of" the school which does such selling. The
29 provisions of this paragraph shall not apply to nor subject
30 to taxation occasional dinners, socials or similar activities
31 of a person organized and operated exclusively for
32 charitable, religious or educational purposes, whether or not
33 such activities are open to the public.
34 A person who is the recipient of a grant or contract
-453- LRB9000671KDdvA
1 under Title VII of the Older Americans Act of 1965 (P.L.
2 92-258) and serves meals to participants in the federal
3 Nutrition Program for the Elderly in return for contributions
4 established in amount by the individual participant pursuant
5 to a schedule of suggested fees as provided for in the
6 federal Act is not engaged in the business of selling
7 tangible personal property at retail with respect to such
8 transactions.
9 The isolated or occasional sale of tangible personal
10 property at retail by a person who does not hold himself out
11 as being engaged (or who does not habitually engage) in
12 selling such tangible personal property at retail, or a sale
13 through a bulk vending machine, does not constitute engaging
14 in a business of selling such tangible personal property at
15 retail within the meaning of this Code; provided that any
16 person who is engaged in a business which is not subject to
17 the taxes imposed by this Code because of involving the sale
18 of or a contract to sell real estate or a construction
19 contract to improve real estate or a construction contract to
20 engineer, install, and maintain an integrated system of
21 products, but who, in the course of conducting such business,
22 transfers tangible personal property to users or consumers in
23 the finished form in which it was purchased, and which does
24 not become real estate or was not engineered and installed,
25 under any provision of a construction contract or real estate
26 sale or real estate sales agreement entered into with some
27 other person arising out of or because of such nontaxable
28 business, is engaged in the business of selling tangible
29 personal property at retail to the extent of the value of the
30 tangible personal property so transferred. If, in such a
31 transaction, a separate charge is made for the tangible
32 personal property so transferred, the value of such property,
33 for the purpose of this Code, shall be the amount so
34 separately charged, but not less than the cost of such
-454- LRB9000671KDdvA
1 property to the transferor; if no separate charge is made,
2 the value of such property, for the purposes of this Code, is
3 the cost to the transferor of such tangible personal
4 property. Construction contracts for the improvement of real
5 estate consisting of engineering, installation, and
6 maintenance of voice, data, video, security, and all
7 telecommunication systems do not constitute engaging in a
8 business of selling tangible personal property at retail
9 within the meaning of this Code if they are sold at one
10 specified contract price.
11 A person who holds himself or herself out as being
12 engaged (or who habitually engages) in selling tangible
13 personal property at retail is a person engaged in the
14 business of selling tangible personal property at retail
15 hereunder with respect to such sales (and not primarily in a
16 service occupation) notwithstanding the fact that such person
17 designs and produces such tangible personal property on
18 special order for the purchaser and in such a way as to
19 render the property of value only to such purchaser, if such
20 tangible personal property so produced on special order
21 serves substantially the same function as stock or standard
22 items of tangible personal property that are sold at retail.
23 Persons who engage in the business of transferring
24 tangible personal property upon the redemption of trading
25 stamps are engaged in the business of selling such property
26 at retail and shall be liable for and shall pay the tax
27 imposed by this Code on the basis of the retail value of the
28 property transferred upon redemption of such stamps.
29 Section 5-120. Selling price.
30 (a) For purposes of the retailers' occupation tax and
31 the use tax, "selling price" means the consideration for a
32 sale valued in money whether received in money or otherwise,
33 including cash, credits, property other than as hereinafter
-455- LRB9000671KDdvA
1 provided, and services, but not including the value of or
2 credit given for traded-in tangible personal property where
3 the item that is traded-in is of like kind and character as
4 that which is being sold, and shall be determined without any
5 deduction on account of the cost of the property sold, the
6 cost of materials used, labor or service cost or any other
7 expense whatsoever, but does not include, for purposes of the
8 use tax only, interest or finance charges which appear as
9 separate items on the bill of sale or sales contract nor, for
10 purposes of the retailers' occupation tax and the use tax,
11 charges that are added to prices by sellers on account of the
12 seller's tax liability under Article 10 the "Retailers'
13 Occupation Tax Act", or on account of the seller's duty to
14 collect, from the purchaser, the tax that is imposed by
15 Article 15 this Act, or on account of the seller's tax
16 liability under Section 8-11-1 of the Illinois Municipal
17 Code, as heretofore and hereafter amended, or on account of
18 the seller's tax liability under the the "County Retailers'
19 Occupation Tax Act, or on account of the seller's tax
20 liability under any tax imposed under the Regional
21 Transportation Authority Act". Effective December 1, 1985,
22 "selling price" shall include charges that are added to
23 prices by sellers on account of the seller's tax liability
24 under the Cigarette Tax Act, on account of the seller's duty
25 to collect, from the purchaser, the tax imposed under the
26 Cigarette Use Tax Act, and on account of the seller's duty to
27 collect, from the purchaser, any cigarette tax imposed by a
28 home rule unit.
29 (b) For purposes of the retailers' occupation tax,
30 "selling price" does not include charges that are added to
31 prices by sellers on account of the seller's tax liability
32 under the Home Rule Municipal Soft Drink Retailers'
33 Occupation Tax. "Amount of sale" shall have the same meaning
34 as "selling price".
-456- LRB9000671KDdvA
1 (c) For purposes of the service occupation tax and the
2 service use tax, "selling price" means the consideration for
3 a sale valued in money whether received in money or
4 otherwise, including cash, credits and service, and shall be
5 determined without any deduction on account of the
6 serviceman's cost of the property sold, the cost of materials
7 used, labor or service cost or any other expense whatsoever,
8 but does not include interest or finance charges which appear
9 as separate items on the bill of sale or sales contract nor
10 charges that are added to prices by sellers on account of the
11 seller's duty to collect, from the purchaser, the tax that is
12 imposed by Article 25.
13 Section 5-55. Like kind and character. For purposes of
14 the retailers' occupation tax and the use tax, the phrase
15 "like kind and character" shall be liberally construed
16 (including but not limited to any form of motor vehicle for
17 any form of motor vehicle, or any kind of farm or
18 agricultural implement for any other kind of farm or
19 agricultural implement), while not including a kind of item
20 which, if sold at retail by that retailer, would be exempt
21 from retailers' occupation tax and use tax as an isolated or
22 occasional sale.
23 Section 5-35. Department. "Department" means the
24 Department of Revenue.
25 Section 5-65. Person. "Person" means any natural
26 individual, firm, partnership, association, joint stock
27 company, joint venture adventure, public or private
28 corporation, limited liability company, or a receiver,
29 executor, trustee, guardian or other representative appointed
30 by order of any court.
-457- LRB9000671KDdvA
1 Section 5-105. Retailer.
2 (a) For purposes of the use tax, "retailer" means and
3 includes every person engaged in the business of making sales
4 at retail as defined in this Section 5-115.
5 A person who holds himself or herself out as being
6 engaged (or who habitually engages) in selling tangible
7 personal property at retail is a retailer hereunder with
8 respect to such sales (and not primarily in a service
9 occupation) notwithstanding the fact that such person designs
10 and produces such tangible personal property on special order
11 for the purchaser and in such a way as to render the property
12 of value only to such purchaser, if such tangible personal
13 property so produced on special order serves substantially
14 the same function as stock or standard items of tangible
15 personal property that are sold at retail.
16 A person whose activities are organized and conducted
17 primarily as a not-for-profit service enterprise, and who
18 engages in selling tangible personal property at retail
19 (whether to the public or merely to members and their guests)
20 is a retailer with respect to such transactions, excepting
21 only a person organized and operated exclusively for
22 charitable, religious or educational purposes either (1), to
23 the extent of sales by such person to its members, students,
24 patients or inmates of tangible personal property to be used
25 primarily for the purposes of such person, or (2), to the
26 extent of sales by such person of tangible personal property
27 which is not sold or offered for sale by persons organized
28 for profit. The selling of school books and school supplies
29 by schools at retail to students is not "primarily for the
30 purposes of" the school which does such selling. This
31 paragraph does not apply to nor subject to taxation
32 occasional dinners, social or similar activities of a person
33 organized and operated exclusively for charitable, religious
34 or educational purposes, whether or not such activities are
-458- LRB9000671KDdvA
1 open to the public.
2 A person who is the recipient of a grant or contract
3 under Title VII of the Older Americans Act of 1965 (P.L.
4 92-258) and serves meals to participants in the federal
5 Nutrition Program for the Elderly in return for contributions
6 established in amount by the individual participant pursuant
7 to a schedule of suggested fees as provided for in the
8 federal Act is not a retailer under Article 15 this Act with
9 respect to such transactions.
10 Persons who engage in the business of transferring
11 tangible personal property upon the redemption of trading
12 stamps are retailers hereunder when engaged in such business.
13 The isolated or occasional sale of tangible personal
14 property at retail by a person who does not hold himself out
15 as being engaged (or who does not habitually engage) in
16 selling such tangible personal property at retail or a sale
17 through a bulk vending machine does not make such person a
18 retailer hereunder. However, any person who is engaged in a
19 business which is not subject to the tax imposed by Article
20 10 the "Retailers' Occupation Tax Act" because of involving
21 the sale of or a contract to sell real estate or a
22 construction contract to improve real estate, but who, in the
23 course of conducting such business, transfers tangible
24 personal property to users or consumers in the finished form
25 in which it was purchased, and which does not become real
26 estate, under any provision of a construction contract or
27 real estate sale or real estate sales agreement entered into
28 with some other person arising out of or because of such
29 nontaxable business, is a retailer to the extent of the value
30 of the tangible personal property so transferred. If, in
31 such transaction, a separate charge is made for the tangible
32 personal property so transferred, the value of such property,
33 for the purposes of Article 15 this Act, is the amount so
34 separately charged, but not less than the cost of such
-459- LRB9000671KDdvA
1 property to the transferor; if no separate charge is made,
2 the value of such property, for the purposes of Article 15
3 this Act, is the cost to the transferor of such tangible
4 personal property.
5 (b) For purposes of the retailers' occupation tax and
6 the use tax, a person who is engaged in the business of
7 leasing or renting motor vehicles to others and who, in
8 connection with such business sells any used motor vehicle to
9 a purchaser for his use and not for the purpose of resale, is
10 a retailer engaged in the business of selling tangible
11 personal property at retail under Articles 10 and 15 to the
12 extent of the value of the vehicle sold. For the purpose of
13 this Section, "motor vehicle" has the meaning prescribed in
14 Section 1-157 of the Illinois Vehicle Code. (Nothing
15 provided herein shall affect liability incurred under
16 Articles 10 and 15 because of the sale at retail of such
17 motor vehicles to a lessor or use of such motor vehicles by a
18 lessor.)
19 Section 5-110. Retailer maintaining a place of business
20 in this State. For purposes of the use tax, "retailer
21 maintaining a place of business in this State", or any like
22 term, means and includes any of the following retailers:
23 (1) 1. A retailer having or maintaining within this
24 State, directly or by a subsidiary, an office,
25 distribution house, sales house, warehouse or other place
26 of business, or any agent or other representative
27 operating within this State under the authority of the
28 retailer or its subsidiary, irrespective of whether such
29 place of business or agent or other representative is
30 located here permanently or temporarily, or whether such
31 retailer or subsidiary is licensed to do business in this
32 State. However, the ownership of property that is located
33 at the premises of a printer with which the retailer has
-460- LRB9000671KDdvA
1 contracted for printing and that consists of the final
2 printed product, property that becomes a part of the
3 final printed product, or copy from which the printed
4 product is produced shall not result in the retailer
5 being deemed to have or maintain an office, distribution
6 house, sales house, warehouse, or other place of business
7 within this State.
8 (2) 2. A retailer soliciting orders for tangible
9 personal property by means of a telecommunication or
10 television shopping system (which utilizes toll free
11 numbers) which is intended by the retailer to be
12 broadcast by cable television or other means of
13 broadcasting, to consumers located in this State.
14 (3) 3. A retailer, pursuant to a contract with a
15 broadcaster or publisher located in this State,
16 soliciting orders for tangible personal property by means
17 of advertising which is disseminated primarily to
18 consumers located in this State and only secondarily to
19 bordering jurisdictions.
20 (4) 4. A retailer soliciting orders for tangible
21 personal property by mail if the solicitations are
22 substantial and recurring and if the retailer benefits
23 from any banking, financing, debt collection,
24 telecommunication, or marketing activities occurring in
25 this State or benefits from the location in this State of
26 authorized installation, servicing, or repair facilities.
27 (5) 5. A retailer that is owned or controlled by
28 the same interests that own or control any retailer
29 engaging in business in the same or similar line of
30 business in this State.
31 (6) 6. A retailer having a franchisee or licensee
32 operating under its trade name if the franchisee or
33 licensee is required to collect the tax under this
34 Section.
-461- LRB9000671KDdvA
1 (7) 7. A retailer, pursuant to a contract with a
2 cable television operator located in this State,
3 soliciting orders for tangible personal property by means
4 of advertising which is transmitted or distributed over a
5 cable television system in this State.
6 (8) 8. A retailer engaging in activities in
7 Illinois, which activities in the state in which the
8 retail business engaging in such activities is located
9 would constitute maintaining a place of business in that
10 state.
11 Section 5-10. Bulk vending machine. For purposes of the
12 retailers' occupation tax and the use tax, "bulk vending
13 machine" means a nonelectrically operated vending machine,
14 containing unsorted confections, nuts or other merchandise
15 which, when a coin of a denomination not larger than one cent
16 is inserted, are dispensed in equal portions, at random and
17 without selection by the customer.
18 (Source: P.A. 88-194; 88-361; 88-480; 88-660, eff. 9-16-94;
19 88-669, eff. 11-29-94; 88-670, eff. 12-2-94.)
20 (35 ILCS 105/2a) (from Ch. 120, par. 439.2a)
21 Section 5-75. Pollution control facilities. Sec. 2a.
22 "Pollution control facilities" means any system, method,
23 construction, device or appliance appurtenant thereto (i)
24 used in this State and acquired as an incident to the
25 purchase of a service from a serviceman, (ii) transferred by
26 a serviceman, or (iii) sold, or used, or intended: (I) for
27 the primary purpose of eliminating, preventing, or reducing
28 air and water pollution as the term "air pollution" or "water
29 pollution" is defined in the the "Environmental Protection
30 Act", enacted by the 76th General Assembly, or (II) for the
31 primary purpose of treating, pretreating, modifying or
32 disposing of any potential solid, liquid or gaseous pollutant
-462- LRB9000671KDdvA
1 which if released without such treatment, pretreatment,
2 modification or disposal might be harmful, detrimental or
3 offensive to human, plant or animal life, or to property.
4 Section 30-5. Pollution control facilities. The
5 purchase, employment and transfer of such tangible personal
6 property as pollution control facilities, as defined in
7 Section 5-75, is not (i) a purchase, use or sale of tangible
8 personal property or (ii) a purchase, use, or sale of
9 service, but shall be deemed to be intangible personal
10 property.
11 (Source: P.A. 76-2447.)
12 (35 ILCS 105/2a-1) (from Ch. 120, par. 439.2a-1)
13 Section 5-60. Low sulfur dioxide emission coal fueled
14 devices. Sec. 2a-1. "Low sulfur dioxide emission coal
15 fueled devices" means any device sold or used or intended for
16 the purpose of burning, combusting or converting locally
17 available coal in a manner which eliminates or significantly
18 reduces the need for additional sulfur dioxide abatement that
19 would otherwise be required under State or federal air
20 emission standards. Such device includes all machinery,
21 equipment, structures and all related apparatus of a coal
22 gasification facility, including coal feeding equipment,
23 designed to convert locally available coal into a low sulfur
24 gaseous fuel and to manage all waste and byproduct streams.
25 Section 30-15. Low sulfur dioxide emission coal fueled
26 devices. The purchase, employment and transfer of such
27 tangible personal property as low sulfur dioxide emission
28 coal fueled devices, as defined in Section 5-60, is not a
29 purchase, use, or sale of tangible personal property.
30 Section 90-45. Low sulfur dioxide emission coal fueled
-463- LRB9000671KDdvA
1 devices; declaratory provisions. The amendatory provisions
2 of Public Act 82-672 concerning low sulfur dioxide emission
3 coal fueled devices, as those provisions appeared in Section
4 1a-1 of the Retailers' Occupation Tax Act, Section 2a-1 of
5 the Use Tax Act, Section 2b of the Service Occupation Tax
6 Act, and Section 2b of the Service Use Tax Act, (now Sections
7 5-60 and 30-5 of this Code) are This amendatory Act of 1981
8 is not intended to nor do they does it make any change in the
9 meaning of any provision in those Sections this Section but
10 are is intended to remove possible ambiguities, thereby
11 confirming the existing meaning of those Sections this
12 Section in effect prior to October 28, the effective date of
13 this amendatory Act of 1981.
14 (Source: P.A. 82-672.)
15 (35 ILCS 105/2b) (from Ch. 120, par. 439.2b)
16 Sec. 2b. "Selling price" shall not include any amounts
17 added to prices by sellers on account of the seller's duty to
18 collect any tax imposed under the "Regional Transportation
19 Authority Act", enacted by the 78th General Assembly.
20 (Source: P. A. 78-3rd S.S.-12.)
21 (35 ILCS 105/2c) (from Ch. 120, par. 439.2c)
22 Section 5-25. Corporation, limited liability company,
23 society, association, foundation, or institution organized
24 and operated exclusively for educational purposes.
25 (a) Sec. 2c. For purposes of this Act, A corporation,
26 limited liability company, society, association, foundation
27 or institution organized and operated exclusively for
28 educational purposes shall include: all tax-supported public
29 schools; private schools which offer systematic instruction
30 in useful branches of learning by methods common to public
31 schools and which compare favorably in their scope and
32 intensity with the course of study presented in tax-supported
-464- LRB9000671KDdvA
1 schools; licensed day care centers as defined in Section 2.09
2 of the Child Care Act of 1969 which are operated by a not for
3 profit corporation, society, association, foundation,
4 institution or organization; vocational or technical schools
5 or institutes organized and operated exclusively to provide a
6 course of study of not less than 6 weeks duration and
7 designed to prepare individuals to follow a trade or to
8 pursue a manual, technical, mechanical, industrial, business
9 or commercial occupation.
10 However, a corporation, limited liability company,
11 society, association, foundation or institution organized and
12 operated for the purpose of offering professional, trade or
13 business seminars of short duration, self-improvement or
14 personality development courses, courses which are
15 avocational or recreational in nature, courses pursued
16 entirely by open circuit television or radio, correspondence
17 courses, or courses which do not provide specialized training
18 within a specific vocational or technical field shall not be
19 considered to be organized and operated exclusively for
20 educational purposes.
21 (b) For purposes of the retailers' occupation tax, the
22 use tax, and the service occupation tax, a corporation,
23 limited liability company, society, association, foundation,
24 or institution organized and operated exclusively for
25 educational purposes shall also include licensed day care
26 centers as defined in Section 2.09 of the Child Care Act of
27 1969 which are operated by a not-for-profit corporation,
28 society, association, foundation, institution, or
29 organization.
30 (Source: P.A. 88-480.)
31 (35 ILCS 105/3) (from Ch. 120, par. 439.3)
32 Section 15-5. Sec. 3. Tax imposed. A tax is imposed
33 upon the privilege of using in this State tangible personal
-465- LRB9000671KDdvA
1 property purchased at retail from a retailer, including
2 computer software, and including photographs, negatives, and
3 positives that are the product of photoprocessing, but not
4 including products of photoprocessing produced for use in
5 motion pictures for commercial exhibition. The tax imposed
6 in this Article shall be known as the "use tax".
7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
8 86-953; 86-1394; 86-1475; 87-876.)
9 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
10 Section 30-165. Personal property sold for the benefit
11 of persons 65 years of age or older. For purposes of the
12 taxes imposed by this Code, Sec. 3-5. Exemptions. Use of the
13 following tangible personal property is exempt from the tax
14 imposed by this Act: (1) personal property sold by or
15 purchased from a corporation, society, association,
16 foundation, institution, or organization, other than a
17 limited liability company, that is organized and operated as
18 a not-for-profit service enterprise for the benefit of
19 persons 65 years of age or older if the personal property was
20 not purchased by the enterprise for the purpose of resale by
21 the enterprise is exempt.
22 Section 30-175. County fair association.
23 (a) For purposes of the retailers' occupation tax,
24 personal property sold to an Illinois county fair association
25 for use in conducting, operating, or promoting the county
26 fair is exempt.
27 (b) For purposes of the use tax, the service occupation
28 tax, and the service use tax, (2) personal property purchased
29 by a not-for-profit Illinois county fair association for use
30 in conducting, operating, or promoting the county fair is
31 exempt.
-466- LRB9000671KDdvA
1 Section 30-160. Personal property sold to a
2 not-for-profit music or dramatic arts organization. For
3 purposes of the taxes imposed by this Code, (3) personal
4 property sold to or purchased by a not-for-profit music or
5 dramatic arts organization that establishes, by proof
6 required by the Department by rule, that it has received an
7 exemption under Section 501(c)(3) of the Internal Revenue
8 Code and that is organized and operated for the presentation
9 of live public performances of musical or theatrical works on
10 a regular basis is exempt.
11 Section 30-170. Personal property sold to charitable,
12 religious, or educational organizations.
13 (a) For purposes of the retailers' occupation tax and
14 the use tax, (4) personal property sold to or purchased by a
15 governmental body, to by a corporation, society, association,
16 foundation, or institution organized and operated exclusively
17 for charitable, religious, or educational purposes, or to by
18 a not-for-profit corporation, society, association,
19 foundation, institution, or organization that has no
20 compensated officers or employees and that is organized and
21 operated primarily for the recreation of persons 55 years of
22 age or older is exempt. A limited liability company may
23 qualify for the exemption under this subsection paragraph
24 only if the limited liability company is organized and
25 operated exclusively for educational purposes. On and after
26 July 1, 1987, however, no entity otherwise eligible for this
27 exemption shall make tax-free purchases unless it has an
28 active exemption identification number issued by the
29 Department in accordance with Section 35-60 of this Code.
30 (b) For purposes of the service occupation tax and the
31 service use tax, "sale of service" shall not include, except
32 as hereinafter provided, a sale or transfer of tangible
33 personal property as an incident to the rendering of service
-467- LRB9000671KDdvA
1 for or by any governmental body or for or by any corporation,
2 society, association, foundation or institution organized and
3 operated exclusively for charitable, religious or educational
4 purposes or any not-for-profit corporation, society,
5 association, foundation, institution or organization which
6 has no compensated officers or employees and which is
7 organized and operated primarily for the recreation of
8 persons 55 years of age or older. A limited liability
9 company may qualify for the exemption under this subsection
10 only if the limited liability company is organized and
11 operated exclusively for educational purposes. On and after
12 July 1, 1987, however, no entity otherwise eligible for the
13 exemption under this subsection shall make tax free purchases
14 unless it has an active exemption identification number
15 issued by the Department.
16 Section 30-110. Passenger car subject to replacement
17 vehicle tax. For purposes of the retailers' occupation tax
18 and the use tax, proceeds of that portion of the selling
19 price of (5) a passenger car the sale of which that is a
20 replacement vehicle to the extent that the purchase price of
21 the car is subject to the Replacement Vehicle Tax are exempt.
22 Section 30-90. Graphic arts machinery and equipment. For
23 purposes of the taxes imposed by this Code, (6) graphic arts
24 machinery and equipment, including repair and replacement
25 parts, both new and used, and including that manufactured on
26 special order or purchased for lease, certified by the
27 purchaser to be used primarily for graphic arts production is
28 exempt, and including machinery and equipment purchased for
29 lease.
30 Section 30-60. Farm chemicals. For purposes of the
31 retailers' occupation tax and the use tax, (7) farm chemicals
-468- LRB9000671KDdvA
1 are exempt.
2 Section 30-205. Legal tender. For purposes of the taxes
3 imposed by this Code, (8) legal tender, currency, medallions,
4 or gold or silver coinage issued by the State of Illinois,
5 the government of the United States of America, or the
6 government of any foreign country, and bullion are exempt.
7 Section 30-155. Personal property sold by students. For
8 purposes of the taxes imposed by this Code, (9) personal
9 property sold by or purchased from a teacher-sponsored
10 student organization affiliated with an elementary or
11 secondary school located in Illinois is exempt.
12 Section 30-105. Motor vehicle used for renting. For
13 purposes of the retailers' occupation tax and the use tax,
14 (10) a motor vehicle of the first division, a motor vehicle
15 of the second division that is a self-contained motor vehicle
16 designed or permanently converted to provide living quarters
17 for recreational, camping, or travel use, with direct walk
18 through access to the living quarters from the driver's seat,
19 or a motor vehicle of the second division that is of the van
20 configuration designed for the transportation of not less
21 than 7 nor more than 16 passengers, as defined in Section
22 1-146 of the Illinois Vehicle Code, that is used for
23 automobile renting, as defined in the Automobile Renting
24 Occupation and Use Tax Act is exempt.
25 Section 30-65. Farm machinery and equipment. For
26 purposes of the taxes imposed by this Code, (11) farm
27 machinery and equipment, both new and used, including that
28 manufactured on special order, certified by the purchaser to
29 be used primarily for production agriculture or State or
30 federal agricultural programs, including individual
-469- LRB9000671KDdvA
1 replacement parts for the machinery and equipment, and
2 including machinery and equipment purchased for lease, but
3 excluding motor vehicles required to be registered under the
4 Illinois Vehicle Code is exempt.
5 Section 30-125. Petroleum products sold to air carrier.
6 For purposes of the taxes imposed by this Code, (12) fuel and
7 petroleum products sold to or used by an air common carrier,
8 certified by the carrier to be used for consumption,
9 shipment, or storage in the conduct of its business as an air
10 common carrier, for a flight destined for or returning from a
11 location or locations outside the United States without
12 regard to previous or subsequent domestic stopovers are
13 exempt.
14 Section 30-200. Mandatory service charge. For purposes
15 of the taxes imposed by this Code, (13) proceeds of mandatory
16 service charges separately stated on customers' bills for the
17 purchase and consumption of food and beverages purchased at
18 retail from a retailer, to the extent that the proceeds of
19 the service charge are in fact turned over as tips or as a
20 substitute for tips to the employees who participate directly
21 in preparing, serving, hosting or cleaning up the food or
22 beverage function with respect to which the service charge is
23 imposed are exempt.
24 Section 30-75. Oil field equipment. For purposes of the
25 taxes imposed by this Code, (14) oil field exploration,
26 drilling, and production equipment, including (i) rigs and
27 parts of rigs, rotary rigs, cable tool rigs, and workover
28 rigs, (ii) pipe and tubular goods, including casing and drill
29 strings, (iii) pumps and pump-jack units, (iv) storage tanks
30 and flow lines, (v) any individual replacement part for oil
31 field exploration, drilling, and production equipment, and
-470- LRB9000671KDdvA
1 (vi) machinery and equipment purchased for lease; but
2 excluding motor vehicles required to be registered under the
3 Illinois Vehicle Code is exempt.
4 Section 30-85. Photoprocessing machinery and equipment.
5 For purposes of the taxes imposed by this Code, (15)
6 photoprocessing machinery and equipment, including repair and
7 replacement parts, both new and used, including that
8 manufactured on special order, certified by the purchaser to
9 be used primarily for photoprocessing, and including
10 photoprocessing machinery and equipment purchased for lease
11 is exempt.
12 Section 30-80. Coal exploration equipment. For purposes
13 of the taxes imposed by this Code, (16) coal exploration,
14 mining, offhighway hauling, processing, maintenance, and
15 reclamation equipment, including replacement parts and
16 equipment, and including equipment purchased for lease, but
17 excluding motor vehicles required to be registered under the
18 Illinois Vehicle Code is exempt.
19 Section 30-70. Distillation machinery and equipment.
20 (a) For purposes of the retailers' occupation tax and
21 the use tax, (17) distillation machinery and equipment, sold
22 as a unit or kit, assembled or installed by the retailer,
23 certified by the user to be used only for the production of
24 ethyl alcohol that will be used for consumption as motor fuel
25 or as a component of motor fuel for the personal use of the
26 user, and not subject to sale or resale is exempt.
27 (b) For purposes of the service occupation tax and the
28 service use tax, "sale of service" shall not include a sale
29 or transfer of distillation machinery and equipment, sold as
30 a unit or kit and assembled or installed by the retailer,
31 which machinery and equipment is certified by the user to be
-471- LRB9000671KDdvA
1 used only for the production of ethyl alcohol that will be
2 used for consumption as motor fuel or as a component of motor
3 fuel for the personal use of such user and not subject to
4 sale or resale.
5 Section 30-95. Manufacturing and assembling machinery
6 and equipment.
7 (a) For purposes of the retailers' occupation tax and
8 the use tax, (18) Manufacturing and assembling machinery and
9 equipment that will be used by the purchaser, or a lessee of
10 the purchaser, primarily in the process of manufacturing or
11 assembling tangible personal property for wholesale or retail
12 sale or lease, whether the that sale or lease is made
13 directly by the manufacturer or by some other person, whether
14 the materials used in the process are owned by the
15 manufacturer or some other person, or whether the that sale
16 or lease is made apart from or as an incident to the seller's
17 engaging in the service occupation of producing machines,
18 tools, dies, jigs, patterns, gauges, or other similar items
19 of no commercial value on special order for a particular
20 purchaser is exempt.
21 (b) For purposes of the service occupation tax and
22 service use tax, "sale of service" shall not include a sale
23 or transfer of machinery and equipment used primarily in the
24 process of the manufacturing or assembling, either in an
25 existing, an expanded or a new manufacturing facility, of
26 tangible personal property for wholesale or retail sale or
27 lease, whether such sale or lease is made directly by the
28 manufacturer or by some other person, whether the materials
29 used in the process are owned by the manufacturer or some
30 other person, or whether such sale or lease is made apart
31 from or as an incident to the seller's engaging in a service
32 occupation and the applicable tax is a service use tax or
33 service occupation tax, rather than use tax or retailers'
-472- LRB9000671KDdvA
1 occupation tax.
2 Section 30-210. Florist.
3 (a) For purposes of the retailers' occupation tax, a
4 transaction in which the purchase order is received by a
5 florist who is located outside Illinois, but who has a
6 florist located in Illinois deliver the property to the
7 purchaser or the purchaser's donee in Illinois is exempt.
8 (b) For purposes of the use tax, (19) personal property
9 delivered to a purchaser or purchaser's donee inside Illinois
10 when the purchase order for that personal property was
11 received by a florist located outside Illinois who has a
12 florist located inside Illinois deliver the personal property
13 is exempt.
14 Section 30-55. Semen. For purposes of the taxes imposed
15 by this Code, (20) semen used for artificial insemination of
16 livestock for direct agricultural production is exempt.
17 Section 30-50. Horses. For purposes of the taxes imposed
18 by this Code, (21) horses, or interests in horses, registered
19 with and meeting the requirements of any of the Arabian Horse
20 Club Registry of America, Appaloosa Horse Club, American
21 Quarter Horse Association, United States Trotting
22 Association, or Jockey Club, as appropriate, used for
23 purposes of breeding or racing for prizes are exempt.
24 Section 30-185. Computers for hospitals.
25 (a) For purposes of the taxes imposed by this Code, (22)
26 computers and communications equipment utilized for any
27 hospital purpose and equipment used in the diagnosis,
28 analysis, or treatment of hospital patients sold to purchased
29 by a lessor who leases the equipment, under a lease of one
30 year or longer executed or in effect, for purposes of the
-473- LRB9000671KDdvA
1 retailers' occupation tax and the service occupation tax, at
2 the time of the purchase, or, for purposes of the use tax and
3 the service use tax, at the time the lessor would otherwise
4 be subject to the tax imposed by Article 15 or Article 25
5 this Act, to a hospital that has been issued an active tax
6 exemption identification number by the Department under
7 Section 35-60 are exempt 1g of the Retailers' Occupation Tax
8 Act.
9 (b) For purposes of the use tax and the service use tax,
10 if the equipment is leased in a manner that does not qualify
11 for this exemption or is used in any other non-exempt manner,
12 the lessor shall be liable for the tax imposed under Article
13 15 or Article 25 this Act or the Service Use Tax Act, as the
14 case may be, based on the fair market value of the property
15 at the time the non-qualifying use occurs. No lessor shall
16 collect or attempt to collect an amount (however designated)
17 that purports to reimburse that lessor for the tax imposed by
18 Article 15 or Article 25 this Act or the Service Use Tax Act,
19 as the case may be, if the tax has not been paid by the
20 lessor. If a lessor improperly collects any such amount from
21 the lessee, the lessee shall have a legal right to claim a
22 refund of that amount from the lessor. If, however, that
23 amount is not refunded to the lessee for any reason, the
24 lessor is liable to pay that amount to the Department.
25 Section 30-190. Personal property sold to lessor for
26 lease to governmental body.
27 (a) For purposes of the taxes imposed by this Code, (23)
28 personal property sold to purchased by a lessor who leases
29 the property, under a lease of one year or longer executed or
30 in effect, for purposes of the retailers' occupation tax and
31 the service occupation tax, at the time of the purchase, or,
32 for purposes of the use tax and the service use tax, at the
33 time the lessor would otherwise be subject to the taxes tax
-474- LRB9000671KDdvA
1 imposed by Article 15 or Article 25 this Act, to a
2 governmental body that has been issued an active sales tax
3 exemption identification number by the Department under
4 Section 35-60 is exempt 1g of the Retailers' Occupation Tax
5 Act.
6 (b) For purposes of the use tax and the service use tax,
7 if the property is leased in a manner that does not qualify
8 for this exemption or used in any other non-exempt manner,
9 the lessor shall be liable for the tax imposed under Article
10 15 or Article 25 this Act or the Service Use Tax Act, as the
11 case may be, based on the fair market value of the property
12 at the time the non-qualifying use occurs. No lessor shall
13 collect or attempt to collect an amount (however designated)
14 that purports to reimburse that lessor for the tax imposed by
15 Article 15 or Article 25 this Act or the Service Use Tax Act,
16 as the case may be, if the tax has not been paid by the
17 lessor. If a lessor improperly collects any such amount from
18 the lessee, the lessee shall have a legal right to claim a
19 refund of that amount from the lessor. If, however, that
20 amount is not refunded to the lessee for any reason, the
21 lessor is liable to pay that amount to the Department.
22 Section 30-180. Personal property donated for disaster
23 relief. For purposes of the taxes imposed by this Code, (24)
24 beginning with taxable years ending on or after December 31,
25 1995 and ending with taxable years ending on or before
26 December 31, 2004, personal property that is donated for
27 disaster relief to be used in a State or federally declared
28 disaster area in Illinois or bordering Illinois by a
29 manufacturer or retailer that is registered in this State to
30 a corporation, society, association, foundation, or
31 institution that has been issued a sales tax exemption
32 identification number by the Department, in accordance with
33 Section 35-60, that assists victims of the disaster who
-475- LRB9000671KDdvA
1 reside within the declared disaster area is exempt.
2 Section 30-45. Personal property used in infrastructure
3 repairs. For purposes of the taxes imposed by this Code,
4 (25) beginning with taxable years ending on or after December
5 31, 1995 and ending with taxable years ending on or before
6 December 31, 2004, personal property that is used in the
7 performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and retention
12 facilities, and sewage treatment facilities, resulting from a
13 State or federally declared disaster in Illinois or bordering
14 Illinois when such repairs are initiated on facilities
15 located in the declared disaster area within 6 months after
16 the disaster is exempt.
17 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
18 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
19 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
20 eff. 8-9-96; revised 8-21-96.)
21 (35 ILCS 105/3-5.5)
22 Section 30-195. Sec. 3-5.5. Food and drugs sold by
23 not-for-profit organizations; exemption.
24 (a) The Department shall not collect the 1% tax imposed
25 on food for human consumption that is to be consumed off the
26 premises where it is sold (other than alcoholic beverages,
27 soft drinks, and food that has been prepared for immediate
28 consumption) and prescription and nonprescription medicines,
29 drugs, medical appliances, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use from any not-for-profit organization, that sells food in
32 a food distribution program at a price below the retail cost
-476- LRB9000671KDdvA
1 of the food to purchasers who, as a condition of
2 participation in the program, are required to perform
3 community service, located in a county or municipality that
4 notifies the Department, in writing, that the county or
5 municipality does not want the tax to be collected from any
6 of such organizations located in the county or municipality.
7 (b) For purposes of the service occupation tax, food for
8 human consumption that is to be consumed off the premises
9 where it is sold (other than alcoholic beverages, soft drinks
10 and food that has been prepared for immediate consumption)
11 and prescription and nonprescription medicines, drugs,
12 medical appliances, and insulin, urine testing materials,
13 syringes, and needles used by diabetics, for human use, when
14 purchased for use by a person receiving medical assistance
15 under Article 5 of the Illinois Public Aid Code who resides
16 in a licensed long-term care facility, as defined in the
17 Nursing Home Care Act is exempt.
18 (Source: P.A. 88-374.)
19 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
20 Section 15-15. Sec. 3-10. Rate of tax. Unless otherwise
21 provided in this Section, the tax imposed by this Article Act
22 is at the rate of 6.25% of either the selling price or the
23 fair market value, if any, of the tangible personal property.
24 In all cases where property functionally used or consumed is
25 the same as the property that was purchased at retail, then
26 the tax is imposed on the selling price of the property. In
27 all cases where property functionally used or consumed is a
28 by-product or waste product that has been refined,
29 manufactured, or produced from property purchased at retail,
30 then the tax is imposed on the lower of the fair market
31 value, if any, of the specific property so used in this State
32 or on the selling price of the property purchased at retail.
33 For purposes of this Section "fair market value" means the
-477- LRB9000671KDdvA
1 price at which property would change hands between a willing
2 buyer and a willing seller, neither being under any
3 compulsion to buy or sell and both having reasonable
4 knowledge of the relevant facts. The fair market value shall
5 be established by Illinois sales by the taxpayer of the same
6 property as that functionally used or consumed, or if there
7 are no such sales by the taxpayer, then comparable sales or
8 purchases of property of like kind and character in Illinois.
9 With respect to gasohol, the tax imposed by this Article
10 Act applies to 70% of the proceeds of sales made on or after
11 January 1, 1990, and before July 1, 1999, and to 100% of the
12 proceeds of sales made thereafter, except that from July 1,
13 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
14 in this State during the 12 months beginning July 1 following
15 any calendar year for which the Department has determined
16 that the percentages in Section 10 of the Gasohol Fuels Tax
17 Abatement Act have not been met.
18 With respect to food for human consumption that is to be
19 consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks, and food that has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances,
23 modifications to a motor vehicle for the purpose of rendering
24 it usable by a disabled person, and insulin, urine testing
25 materials, syringes, and needles used by diabetics, for human
26 use, the tax is imposed at the rate of 1%. For the purposes
27 of this Section, the term "soft drinks" means any complete,
28 finished, ready-to-use, non-alcoholic drink, whether
29 carbonated or not, including but not limited to soda water,
30 cola, fruit juice, vegetable juice, carbonated water, and all
31 other preparations commonly known as soft drinks of whatever
32 kind or description that are contained in any closed or
33 sealed bottle, can, carton, or container, regardless of size.
34 "Soft drinks" does not include coffee, tea, non-carbonated
-478- LRB9000671KDdvA
1 water, infant formula, milk or milk products as defined in
2 the Grade A Pasteurized Milk and Milk Products Act, or drinks
3 containing 50% or more natural fruit or vegetable juice.
4 Notwithstanding any other provisions of this Code Act,
5 "food for human consumption that is to be consumed off the
6 premises where it is sold" includes all food sold through a
7 vending machine, except soft drinks and food products that
8 are dispensed hot from a vending machine, regardless of the
9 location of the vending machine.
10 If the property that is purchased at retail from a
11 retailer is acquired outside Illinois and used outside
12 Illinois before being brought to Illinois for use here and is
13 taxable under this Article Act, the "selling price" on which
14 the tax is computed shall be reduced by an amount that
15 represents a reasonable allowance for depreciation for the
16 period of prior out-of-state use.
17 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
18 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
19 (35 ILCS 105/3-15) (from Ch. 120, par. 439.3-15)
20 Section 5-70. Sec. 3-15. Photoprocessing. For purposes
21 of the tax imposed on photographs, negatives, and positives
22 by this Code Act, "photoprocessing" includes, but is not
23 limited to, developing films, positives, negatives, and
24 transparencies, and tinting, coloring, making, and enlarging
25 prints. Photoprocessing does not include color separation,
26 typesetting, and platemaking by photographic means in the
27 graphic arts industry and does not include any procedure,
28 process, or activity connected with the creation of the
29 images on the film from which the negatives, positives, or
30 photographs are derived. The charge for in-house
31 photoprocessing may not be less than the photoprocessor's
32 cost price of materials. In transactions in which products
33 of photoprocessing are sold in conjunction with other
-479- LRB9000671KDdvA
1 services, if a charge for the photoprocessing component is
2 not separately stated, tax is imposed on 50% of the entire
3 selling price unless the sale is made by a professional
4 photographer, in which case tax is imposed on 10% of the
5 entire selling price.
6 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
7 86-953; 86-1394; 86-1475.)
8 (35 ILCS 105/3-20) (from Ch. 120, par. 439.3-20)
9 Section 5-15. Sec. 3-20. Bullion. For purposes of the
10 exemption pertaining to bullion, "Bullion" means gold,
11 silver, or platinum in a bulk state with a purity of not less
12 than 980 parts per 1,000.
13 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
14 86-953; 86-1394; 86-1475.)
15 (35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25)
16 Section 5-20. Sec. 3-25. Computer software. For the
17 purposes of this Act, "Computer software" means a set of
18 statements, data, or instructions to be used directly or
19 indirectly in a computer in order to bring about a certain
20 result in any form in which those statements, data, or
21 instructions may be embodied, transmitted, or fixed, by any
22 method now known or hereafter developed, regardless of
23 whether the statements, data, or instructions are capable of
24 being perceived by or communicated to humans, and includes
25 prewritten or canned software that is held for repeated sale
26 or lease, and all associated documentation and materials, if
27 any, whether contained on magnetic tapes, discs, cards, or
28 other devices or media, but does not include software that is
29 adapted to specific individualized requirements of a
30 purchaser, custom-made and modified software designed for a
31 particular or limited use by a purchaser, or software used to
32 operate exempt machinery and equipment used in the process of
-480- LRB9000671KDdvA
1 manufacturing or assembling tangible personal property for
2 wholesale or retail sale or lease.
3 For the purposes of this Code Act, computer software
4 shall be considered to be tangible personal property.
5 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
6 86-953; 86-1394; 86-1475.)
7 (35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30)
8 Section 5-45. Sec. 3-30. Graphic arts production. For
9 the purposes of this Act, "Graphic arts production" means
10 printing by one or more of the common processes or graphic
11 arts production services as those processes and services are
12 defined in Major Group 27 of the U. S. Standard Industrial
13 Classification Manual.
14 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
15 86-953; 86-1394; 86-1475.)
16 (35 ILCS 105/3-35) (from Ch. 120, par. 439.3-35)
17 Section 5-80. Sec. 3-35. Production agriculture. For
18 purposes of this Act, "Production agriculture" means the
19 raising of or the propagation of livestock; crops for sale
20 for human consumption; crops for livestock consumption; and
21 production seed stock grown for the propagation of feed
22 grains and the husbandry of animals or for the purpose of
23 providing a food product, including the husbandry of blood
24 stock as a main source of providing a food product.
25 "Production agriculture" also means animal husbandry,
26 floriculture, aquaculture, horticulture, and viticulture.
27 (Source: P.A. 89-220, eff. 1-1-96.)
28 (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
29 Section 5-40. Sec. 3-40. Gasohol. As used in this Act,
30 "Gasohol" means motor fuel that is no more than 90% gasoline
31 and at least 10% denatured ethanol that contains no more than
-481- LRB9000671KDdvA
1 1.25% water by weight.
2 Section 80-15. Misrepresentation of gasohol. For
3 purposes of the retailers' occupation tax and the use tax,
4 any person who knowingly sells or represents as gasohol any
5 fuel that does not qualify as gasohol under this Code Act is
6 guilty of a business offense and shall be fined not more than
7 $100 for each day that the sale or representation takes place
8 after notification from the Department of Agriculture that
9 the fuel in question does not qualify as gasohol.
10 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
11 86-953; 86-1394; 86-1475.)
12 (35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45)
13 Section 15-20.Sec. 3-45. Collection. The tax imposed by
14 this Article Act shall be collected from the purchaser by a
15 retailer maintaining a place of business in this State or a
16 retailer authorized by the Department under Section 60-10 6
17 of this Code Act, and shall be remitted to the Department as
18 provided in Sections 50-5 through 50-140 Section 9 of this
19 Code Act.
20 The tax imposed by this Article Act that is not paid to a
21 retailer under this Section shall be paid to the Department
22 directly by any person using the property within this State
23 as provided in Section 50-155 10 of this Code Act.
24 Retailers shall collect the tax from users by adding the
25 tax to the selling price of tangible personal property, when
26 sold for use, in the manner prescribed by the Department.
27 The Department may adopt and promulgate reasonable rules and
28 regulations for the adding of the tax by retailers to selling
29 prices by prescribing bracket systems for the purpose of
30 enabling the retailers to add and collect, as far as
31 practicable, the amount of the tax.
32 If a seller collects use tax measured by receipts that
-482- LRB9000671KDdvA
1 are not subject to use tax, or if a seller, in collecting use
2 tax measured by receipts that are subject to tax under this
3 Article Act, collects more from the purchaser than the
4 required amount of the use tax on the transaction, the
5 purchaser shall have a legal right to claim a refund of that
6 amount from the seller. If, however, that amount is not
7 refunded to the purchaser for any reason, the seller is
8 liable to pay that amount to the Department. This paragraph
9 does not apply to an amount collected by the seller as use
10 tax on receipts that are subject to tax under this Article
11 Act as long as the collection is made in compliance with the
12 tax collection brackets prescribed by the Department in its
13 rules and regulations.
14 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
15 86-953; 86-1394; 86-1475.)
16 (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
17 Section 30-100. Sec. 3-50. Manufacturing and assembling
18 assembly exemption.
19 (a) For purposes of the retailers' occupation tax and
20 the use tax, the manufacturing and assembling machinery and
21 equipment exemption includes machinery and equipment that
22 replaces machinery and equipment in an existing manufacturing
23 facility as well as machinery and equipment that are for use
24 in an expanded or new manufacturing facility. The
25 manufacturing and assembling machinery and equipment
26 exemption includes the sale of materials to a purchaser who
27 produces exempted types of machinery, equipment, or tools and
28 who rents or leases that machinery, equipment, or tools to a
29 manufacturer of tangible personal property. This exemption
30 also includes the sale of materials to a purchaser who
31 manufactures those materials into an exempted type of
32 machinery, equipment, or tools that the purchaser uses
33 himself or herself in the manufacturing of tangible personal
-483- LRB9000671KDdvA
1 property. For purposes of the use tax, this exemption also
2 includes the sale of exempted types of machinery or equipment
3 to a purchaser who is not the manufacturer, but who rents or
4 leases the use of the property to a manufacturer.
5 (b) For purposes of this Code, the machinery and
6 equipment exemption also includes machinery and equipment
7 used in the general maintenance or repair of exempt machinery
8 and equipment or for in-house manufacture of exempt machinery
9 and equipment. For the purposes of this exemption, terms have
10 the following meanings:
11 (1) "Manufacturing process" means the production of
12 an article of tangible personal property, whether the
13 article is a finished product or an article for use in
14 the process of manufacturing or assembling a different
15 article of tangible personal property, by a procedure
16 commonly regarded as manufacturing, processing,
17 fabricating, or refining that changes some existing
18 material or materials into a material with a different
19 form, use, or name. In relation to a recognized
20 integrated business composed of a series of operations
21 that collectively constitute manufacturing, or
22 individually constitute manufacturing operations, the
23 manufacturing process commences with the first operation
24 or stage of production in the series and does not end
25 until the completion of the final product in the last
26 operation or stage of production in the series. For
27 purposes of this exemption, photoprocessing is a
28 manufacturing process of tangible personal property for
29 wholesale or retail sale.
30 (2) "Assembling process" means the production of an
31 article of tangible personal property, whether the
32 article is a finished product or an article for use in
33 the process of manufacturing or assembling a different
34 article of tangible personal property, by the combination
-484- LRB9000671KDdvA
1 of existing materials in a manner commonly regarded as
2 assembling that results in an article or material of a
3 different form, use, or name.
4 (3) "Machinery" means major mechanical machines or
5 major components of those machines contributing to a
6 manufacturing or assembling process.
7 (4) "Equipment" includes an independent device or
8 tool separate from machinery but essential to an
9 integrated manufacturing or assembly process; including
10 computers used primarily in operating exempt machinery
11 and equipment in a computer assisted design, computer
12 assisted manufacturing (CAD/CAM) system; any subunit or
13 assembly comprising a component of any machinery or
14 auxiliary, adjunct, or attachment parts of machinery,
15 such as tools, dies, jigs, fixtures, patterns, and molds;
16 and any parts that require periodic replacement in the
17 course of normal operation; but does not include hand
18 tools.
19 The manufacturing and assembling machinery and equipment
20 exemption includes the sale of materials to a purchaser who
21 produces exempted types of machinery, equipment, or tools and
22 who rents or leases that machinery, equipment, or tools to a
23 manufacturer of tangible personal property. This exemption
24 also includes the sale of materials to a purchaser who
25 manufactures those materials into an exempted type of
26 machinery, equipment, or tools that the purchaser uses
27 himself or herself in the manufacturing of tangible personal
28 property. This exemption includes the sale of exempted types
29 of machinery or equipment to a purchaser who is not the
30 manufacturer, but who rents or leases the use of the property
31 to a manufacturer.
32 (c) For purposes of this Code, the purchaser of the
33 machinery and equipment who has an active resale registration
34 number shall furnish that number to the seller at the time of
-485- LRB9000671KDdvA
1 purchase. For purposes of the retailers' occupation tax and
2 the service occupation tax, a purchaser of the machinery,
3 equipment, and tools without an active resale registration
4 number shall furnish to the seller a certificate of exemption
5 for each transaction stating facts establishing the exemption
6 for that transaction. For purposes of the use tax and the
7 service use tax, a user of the machinery, equipment, or tools
8 without an active resale registration number shall prepare a
9 certificate of exemption for each transaction stating facts
10 establishing the exemption for that transaction., and That
11 certificate shall be available to the Department for
12 inspection or audit. The Department shall prescribe the form
13 of the certificate. Informal rulings, opinions, or letters
14 issued by the Department in response to an inquiry or request
15 for an opinion from any person regarding the coverage and
16 applicability of this exemption to specific devices shall be
17 published, maintained as a public record, and made available
18 for public inspection and copying. If the informal ruling,
19 opinion, or letter contains trade secrets or other
20 confidential information, where possible, the Department
21 shall delete that information before publication. Whenever
22 informal rulings, opinions, or letters contain a policy of
23 general applicability, the Department shall formulate and
24 adopt that policy as a rule in accordance with the Illinois
25 Administrative Procedure Act.
26 (Source: P.A. 88-505; 88-547.)
27 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
28 Section 30-220. Sec. 3-55. Multistate exemption.
29 (a) To prevent actual or likely multistate taxation, the
30 taxes tax imposed by Article 15 and Article 25 do this Act
31 does not apply to the use of tangible personal property in
32 this State under the following circumstances:
33 (1) (a) The use, in this State, of tangible
-486- LRB9000671KDdvA
1 personal property acquired outside this State by a
2 nonresident individual and brought into this State by the
3 individual for his or her own use while temporarily
4 within this State or while passing through this State.
5 (b) The use, in this State, of tangible personal
6 property by an interstate carrier for hire as rolling stock
7 moving in interstate commerce or by lessors under a lease of
8 one year or longer executed or in effect at the time of
9 purchase of tangible personal property by interstate carriers
10 for-hire for use as rolling stock moving in interstate
11 commerce as long as so used by the interstate carriers
12 for-hire, and equipment operated by a telecommunications
13 provider, licensed as a common carrier by the Federal
14 Communications Commission, which is permanently installed in
15 or affixed to aircraft moving in interstate commerce.
16 (c) The use, in this State, by owners, lessors, or
17 shippers of tangible personal property that is utilized by
18 interstate carriers for hire for use as rolling stock moving
19 in interstate commerce as long as so used by the interstate
20 carriers for hire, and equipment operated by a
21 telecommunications provider, licensed as a common carrier by
22 the Federal Communications Commission, which is permanently
23 installed in or affixed to aircraft moving in interstate
24 commerce.
25 (2) (d) The use, in this State, of tangible
26 personal property that is acquired outside this State and
27 caused to be brought into this State by a person who has
28 already paid a tax in another state in respect to the
29 sale, purchase, or use of that property, to the extent of
30 the amount of the tax properly due and paid in the other
31 state.
32 (3) (e) The temporary storage, in this State, of
33 tangible personal property that is acquired outside this
34 State and that, after being brought into this State and
-487- LRB9000671KDdvA
1 stored here temporarily, is used solely outside this
2 State or is physically attached to or incorporated into
3 other tangible personal property that is used solely
4 outside this State, or is altered by converting,
5 fabricating, manufacturing, printing, processing, or
6 shaping, and, as altered, is used solely outside this
7 State.
8 (b) To prevent actual or likely multistate taxation, the
9 tax imposed by Article 15 does not apply to (f) the temporary
10 storage in this State of building materials and fixtures that
11 are acquired either in this State or outside this State by an
12 Illinois registered combination retailer and construction
13 contractor, and that the purchaser thereafter uses outside
14 this State by incorporating that property into real estate
15 located outside this State.
16 (c) To prevent actual or likely multistate taxation, the
17 tax imposed by Article 25 does not apply to the use, in this
18 State, of property that is acquired outside this State and
19 that is moved into this State for use as rolling stock moving
20 in interstate commerce.
21 Section 30-135. Tangible personal property sold to rail
22 common carrier.
23 (a) For purposes of the retailers' occupation tax and the
24 use tax, (g) The use or purchase of tangible personal
25 property sold to by a common carrier by rail that receives
26 the physical possession of the property in Illinois, and that
27 transports the property, or shares with another common
28 carrier in the transportation of the property, out of
29 Illinois on a standard uniform bill of lading showing the
30 seller of the property as the shipper or consignor of the
31 property to a destination outside Illinois, for use outside
32 Illinois is exempt.
33 (b) For purposes of the service occupation tax and the
-488- LRB9000671KDdvA
1 service use tax, "sale of service" shall not include the
2 repairing, reconditioning or remodeling, for a common carrier
3 by rail, of tangible personal property which belongs to such
4 carrier for hire, and as to which such carrier receives the
5 physical possession of the repaired, reconditioned or
6 remodeled item of tangible personal property in Illinois, and
7 which such carrier transports, or shares with another common
8 carrier in the transportation of such property, out of
9 Illinois on a standard uniform bill of lading showing the
10 person who repaired, reconditioned or remodeled the property
11 as the shipper or consignor of such property to a destination
12 outside Illinois, for use outside Illinois.
13 (c) For purposes of the service occupation tax and the
14 service use tax, "sale of service" shall not include a sale
15 or transfer of tangible personal property which is produced
16 by the seller thereof on special order in such a way as to
17 have made the applicable tax the service occupation tax or
18 the service use tax, rather than the retailers' occupation
19 tax or the use tax, for an interstate carrier by rail which
20 receives the physical possession of such property in
21 Illinois, and which transports such property, or shares with
22 another common carrier in the transportation of such
23 property, out of Illinois on a standard uniform bill of
24 lading showing the seller of the property as the shipper or
25 consignor of such property to a destination outside Illinois,
26 for use outside Illinois.
27 Section 30-115. Motor vehicle sold to a non-resident.
28 For purposes of the retailers' occupation tax and the use
29 tax, (h) The use, in this State, of a motor vehicle that was
30 sold in this State to a nonresident, even though the motor
31 vehicle is delivered to the nonresident in this State, if the
32 motor vehicle is not to be titled in this State, and if a
33 driveaway decal permit is issued to the motor vehicle as
-489- LRB9000671KDdvA
1 provided in Section 3-603 of the Illinois Vehicle Code or if
2 the nonresident purchaser has vehicle registration plates to
3 transfer to the motor vehicle upon returning to his or her
4 home state is exempt. The issuance of the driveaway decal
5 permit or having the out-of-state registration plates to be
6 transferred is shall be prima facie evidence that the motor
7 vehicle will not be titled in this State.
8 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
9 86-953; 86-1394; 86-1475; 87-1263.)
10 Section 30-140. Rolling stock; personal property.
11 (a) For purposes of the retailers' occupation tax and
12 the use tax, personal property sold to an interstate carrier
13 for hire for use as rolling stock moving in interstate
14 commerce or to lessors under leases of one year or longer
15 executed or in effect at the time of purchase by interstate
16 carriers for hire for use as rolling stock moving in
17 interstate commerce as long as so used by interstate carriers
18 for hire and equipment operated by a telecommunications
19 provider, licensed as a common carrier by the Federal
20 Communications Commission, which is permanently installed in
21 or affixed to aircraft moving in interstate commerce is
22 exempt.
23 (b) For purposes of the service occupation tax and the
24 service use tax, "sale of service" shall not include a sale
25 or transfer of tangible personal property as an incident to
26 the rendering of service for interstate carriers for hire for
27 use as rolling stock moving in interstate commerce or lessors
28 under leases of one year or longer, executed or in effect at
29 the time of purchase, to interstate carriers for hire for use
30 as rolling stock moving in interstate commerce as long as so
31 used by such interstate carriers for hire, and equipment
32 operated by a telecommunications provider, licensed as a
33 common carrier by the Federal Communications Commission,
-490- LRB9000671KDdvA
1 which is permanently installed in or affixed to aircraft
2 moving in interstate commerce.
3 Section 30-145. Rolling stock; proceeds from sales.
4 (a) For purposes of the retailers' occupation tax and
5 the use tax, proceeds from sales to owners, lessors, or
6 shippers of tangible personal property that is utilized by
7 interstate carriers for hire for use as rolling stock moving
8 in interstate commerce as long as so used by the interstate
9 carriers for hire, and equipment operated by a
10 telecommunications provider, licensed as a common carrier by
11 the Federal Communications Commission, which is permanently
12 installed in or affixed to aircraft moving in interstate
13 commerce are exempt.
14 (b) For purposes of the service occupation tax and the
15 service use tax, "sale of service" shall not include a sale
16 or transfer of tangible personal property as an incident to
17 the rendering of service for owners, lessors or shippers of
18 tangible personal property which is utilized by interstate
19 carriers for hire for use as rolling stock moving in
20 interstate commerce as long as so used by such interstate
21 carriers for hire, and equipment operated by a
22 telecommunications provider, licensed as a common carrier by
23 the Federal Communications Commission, which is permanently
24 installed in or affixed to aircraft moving in interstate
25 commerce.
26 (35 ILCS 105/3-60) (from Ch. 120, par. 439.3-60)
27 Section 30-150. Sec. 3-60. Rolling stock exemption. The
28 rolling stock exemption applies to rolling stock used by an
29 interstate carrier for hire, even just between points in
30 Illinois, if the rolling stock transports, for hire, persons
31 whose journeys or property whose shipments originate or
32 terminate outside Illinois.
-491- LRB9000671KDdvA
1 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
2 86-953; 86-1394; 86-1475.)
3 (35 ILCS 105/3-65) (from Ch. 120, par. 439.3-65)
4 Section 15-25. Sec. 3-65. R.O.T. nontaxability. If the
5 seller of tangible personal property for use would not be
6 taxable under Article 10 of this Code the Retailers'
7 Occupation Tax Act despite all elements of the sale occurring
8 in Illinois, then the tax imposed by this Article Act does
9 not apply to the use of the tangible personal property in
10 this State.
11 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
12 86-953; 86-1394; 86-1475.)
13 (35 ILCS 105/3-70) (from Ch. 120, par. 439.3-70)
14 Section 30-225. Sec. 3-70. Property acquired by
15 nonresident. The taxes tax imposed by Article 15 and Article
16 25 do this Act does not apply to the use, in this State, of
17 tangible personal property that is acquired outside this
18 State by a nonresident individual who then brings the
19 property to this State for use here and who has used the
20 property outside this State for at least 3 months before
21 bringing the property to this State.
22 Where a business that is not operated in Illinois, but is
23 operated in another State, is moved to Illinois or opens an
24 office, plant, or other business facility in Illinois, that
25 business shall not be taxed on its use, in Illinois, of used
26 tangible personal property, other than, for purposes of the
27 use tax only, items of tangible personal property that must
28 be titled or registered with the State of Illinois or whose
29 registration with the United States Government must be filed
30 with the State of Illinois, that the business bought outside
31 Illinois and used outside Illinois in the operation of the
32 business for at least 3 months before moving the used
-492- LRB9000671KDdvA
1 property to Illinois for use in this State.
2 Section 5-5. Acquired outside this State. For purposes
3 of the use tax, "acquired outside this State", whenever used
4 in this Act, in addition to its usual and popular meaning,
5 also means the delivery, outside Illinois, of tangible
6 personal property that is purchased in this State and
7 delivered from a point in this State to a point of delivery
8 outside this State.
9 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
10 86-953; 86-1394; 86-1475; 87-876.)
11 (35 ILCS 105/3-75) (from Ch. 120, par. 439.3-75)
12 Section 15-30. Sec. 3-75. Serviceman transfer. Tangible
13 personal property purchased by a serviceman, as defined in
14 Section 5-125 2 of the Service Occupation Tax Act, is subject
15 to the tax imposed by this Article Act when purchased for
16 transfer by the serviceman incidental to completion of a
17 maintenance agreement.
18 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
19 86-953; 86-1394; 86-1475.)
20 (35 ILCS 105/3-80) (from Ch. 120, par. 439.3-80)
21 Section 90-15. Sec. 3-80. Liability because of amendatory
22 Act.
23 (a) Revisions in Section 2 (which became Sections 2
24 through 2-65) of the Retailers' Occupation Tax Act by Public
25 Act 85-1135 do not affect tax liability that arose before
26 January 1, 1990.
27 (b) Revisions in Section 3 (which became Sections 3
28 through 3-80) of the Use Tax Act (now Sections 3 through
29 3-80) by Public Act 85-1135 do not affect tax liability that
30 arose before January 1, 1990.
31 (c) Revisions in Section 3 (which became Sections 3
-493- LRB9000671KDdvA
1 through 3-50) of the Service Occupation Tax Act by Public Act
2 85-1135 do not affect tax liability that arose before January
3 1, 1990.
4 (d) Revisions in Section 3 (which became Sections 3
5 through 3-65) of the Service Use Tax Act by Public Act
6 85-1135 do not affect tax liability that arose before January
7 1, 1990.
8 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
9 86-953; 86-1394; 86-1475.)
10 (35 ILCS 105/3-85)
11 Section 30-230. Sec. 3-85. Manufacturer's Purchase
12 Credit. For purposes of the use tax and the service use tax,
13 for purchases of machinery and equipment made on and after
14 January 1, 1995, a purchaser of manufacturing machinery and
15 equipment that qualifies for the exemption provided by
16 Section 30-95 paragraph (18) of Section 3-5 of this Code Act
17 earns a credit in an amount equal to a fixed percentage of
18 the tax which would have been incurred under Article 15 or 25
19 of this Code this Act on those purchases. For purchases of
20 graphic arts machinery and equipment made on or after July 1,
21 1996, a purchaser of graphic arts machinery and equipment
22 that qualifies for the exemption provided by Section 30-90
23 paragraph (6) of Section 3-5 of this Code Act earns a credit
24 in an amount equal to a fixed percentage of the tax that
25 would have been incurred under Article 15 or 25 of this Code
26 this Act on those purchases. The credit earned for purchases
27 of manufacturing machinery and equipment or graphic arts
28 machinery and equipment shall be referred to as the
29 Manufacturer's Purchase Credit. A graphic arts producer is a
30 person engaged in graphic arts production as defined in
31 Section 5-45 of this Code 2-30 of the Retailers' Occupation
32 Tax Act. Beginning July 1, 1996, all references in this
33 Section to manufacturers or manufacturing shall also be
-494- LRB9000671KDdvA
1 deemed to refer to graphic arts producers or graphic arts
2 production.
3 The amount of credit shall be a percentage of the tax
4 that would have been incurred on the purchase of
5 manufacturing machinery and equipment or graphic arts
6 machinery and equipment if the exemptions provided by Section
7 30-90 or 30-95 paragraph (6) or paragraph (18) of Section 3-5
8 of this Code Act had not been applicable. The percentage
9 shall be as follows:
10 (1) 15% for purchases made on or before June 30,
11 1995.
12 (2) 25% for purchases made after June 30, 1995, and
13 on or before June 30, 1996.
14 (3) 40% for purchases made after June 30, 1996, and
15 on or before June 30, 1997.
16 (4) 50% for purchases made on or after July 1,
17 1997.
18 A purchaser of production related tangible personal
19 property desiring to use the Manufacturer's Purchase Credit
20 shall certify to the seller that the purchaser is satisfying
21 all or part of the liability under Article 15 or Article 25
22 of this Code the Use Tax Act or the Service Use Tax Act that
23 is due on the purchase of the production related tangible
24 personal property by use of Manufacturer's Purchase Credit.
25 The Manufacturer's Purchase Credit certification must be
26 dated and shall include the name and address of the
27 purchaser, the purchaser's registration number, if
28 registered, the credit being applied, and a statement that
29 the State use tax or service use tax liability is being
30 satisfied with the manufacturer's or graphic arts producer's
31 accumulated purchase credit. Certification may be
32 incorporated into the manufacturer's or graphic arts
33 producer's purchase order. Manufacturer's Purchase Credit
34 certification by the manufacturer or graphic arts producer
-495- LRB9000671KDdvA
1 may be used to satisfy the retailer's or serviceman's
2 liability under Article 10 or Article 20 of this Code the
3 Retailers' Occupation Tax Act or Service Occupation Tax Act
4 for the credit claimed, not to exceed 6.25% of the receipts
5 subject to tax from a qualifying purchase, but only if the
6 retailer or serviceman reports the Manufacturer's Purchase
7 Credit claimed as required by the Department. The
8 Manufacturer's Purchase Credit earned by purchase of exempt
9 manufacturing machinery and equipment or graphic arts
10 machinery and equipment is a non-transferable credit. A
11 manufacturer or graphic arts producer that enters into a
12 contract involving the installation of tangible personal
13 property into real estate within a manufacturing or graphic
14 arts production facility may authorize a construction
15 contractor to utilize credit accumulated by the manufacturer
16 or graphic arts producer to purchase the tangible personal
17 property. A manufacturer or graphic arts producer intending
18 to use accumulated credit to purchase such tangible personal
19 property shall execute a written contract authorizing the
20 contractor to utilize a specified dollar amount of credit.
21 The contractor shall furnish the supplier with the
22 manufacturer's or graphic arts producer's name, registration
23 or resale number, and a statement that a specific amount of
24 the use tax or service use tax liability, not to exceed 6.25%
25 of the selling price, is being satisfied with the credit. The
26 manufacturer or graphic arts producer shall remain liable to
27 timely report all information required by the annual Report
28 of Manufacturer's Purchase Credit Used for all credit
29 utilized by a construction contractor.
30 The Manufacturer's Purchase Credit may be used to satisfy
31 liability under Article 15 or Article 25 of this Code the Use
32 Tax Act or the Service Use Tax Act due on the purchase of
33 production related tangible personal property (including
34 purchases by a manufacturer, by a graphic arts producer, or
-496- LRB9000671KDdvA
1 by a lessor who rents or leases the use of the property to a
2 manufacturer or graphic arts producer) that does not
3 otherwise qualify for the manufacturing machinery and
4 equipment exemption or the graphic arts machinery and
5 equipment exemption. "Production related tangible personal
6 property" means (i) all tangible personal property used or
7 consumed by the purchaser in a manufacturing facility in
8 which a manufacturing process described in Section 30-100 of
9 this Code 2-45 of the Retailers' Occupation Tax Act takes
10 place, including tangible personal property purchased for
11 incorporation into real estate within a manufacturing
12 facility and including, but not limited to, tangible personal
13 property used or consumed in activities such as preproduction
14 material handling, receiving, quality control, inventory
15 control, storage, staging, and packaging for shipping and
16 transportation purposes; (ii) all tangible personal property
17 used or consumed by the purchaser in a graphic arts facility
18 in which graphic arts production as described in Section 5-45
19 of this Code 2-30 of the Retailers' Occupation Tax Act takes
20 place, including tangible personal property purchased for
21 incorporation into real estate within a graphic arts facility
22 and including, but not limited to, all tangible personal
23 property used or consumed in activities such as graphic arts
24 preliminary or pre-press production, pre-production material
25 handling, receiving, quality control, inventory control,
26 storage, staging, sorting, labeling, mailing, tying,
27 wrapping, and packaging; and (iii) all tangible personal
28 property used or consumed by the purchaser for research and
29 development. "Production related tangible personal property"
30 does not include (i) tangible personal property used, within
31 or without a manufacturing facility, in sales, purchasing,
32 accounting, fiscal management, marketing, personnel
33 recruitment or selection, or landscaping or (ii) tangible
34 personal property required to be titled or registered with a
-497- LRB9000671KDdvA
1 department, agency, or unit of federal, state, or local
2 government. The Manufacturer's Purchase Credit may be used
3 to satisfy the tax arising either from the purchase of
4 machinery and equipment on or after January 1, 1995 for which
5 the exemption provided by Section 30-95 paragraph (18) of
6 Section 3-5 of this Code Act was erroneously claimed, or the
7 purchase of machinery and equipment on or after July 1, 1996
8 for which the exemption provided by Section 30-90 paragraph
9 (6) of Section 3-5 of this Code Act was erroneously claimed,
10 but not in satisfaction of penalty, if any, and interest for
11 failure to pay the tax when due. A purchaser of production
12 related tangible personal property who is required to pay
13 Illinois use tax or service use tax on the purchase directly
14 to the Department may utilize the Manufacturer's Purchase
15 Credit in satisfaction of the tax arising from that purchase,
16 but not in satisfaction of penalty and interest. A purchaser
17 who uses the Manufacturer's Purchase Credit to purchase
18 property which is later determined not to be production
19 related tangible personal property may be liable for tax,
20 penalty, and interest on the purchase of that property as of
21 the date of purchase but shall be entitled to use the
22 disallowed Manufacturer's Purchase Credit, so long as it has
23 not expired, on qualifying purchases of production related
24 tangible personal property not previously subject to credit
25 usage. The Manufacturer's Purchase Credit earned by a
26 manufacturer or graphic arts producer expires the last day of
27 the second calendar year following the calendar year in which
28 the credit arose.
29 A purchaser earning Manufacturer's Purchase Credit shall
30 sign and file an annual Report of Manufacturer's Purchase
31 Credit Earned for each calendar year no later than the last
32 day of the sixth month following the calendar year in which a
33 Manufacturer's Purchase Credit is earned. A Report of
34 Manufacturer's Purchase Credit Earned shall be filed on forms
-498- LRB9000671KDdvA
1 as prescribed or approved by the Department and shall state,
2 for each month of the calendar year: (i) the total purchase
3 price of all purchases of exempt manufacturing or graphic
4 arts machinery on which the credit was earned; (ii) the total
5 State use tax or service use tax which would have been due on
6 those items; (iii) the percentage used to calculate the
7 amount of credit earned; (iv) the amount of credit earned;
8 and (v) such other information as the Department may
9 reasonably require. A purchaser earning Manufacturer's
10 Purchase Credit shall maintain records which identify, as to
11 each purchase of manufacturing or graphic arts machinery and
12 equipment on which the purchaser earned Manufacturer's
13 Purchase Credit, the vendor (including, if applicable, either
14 the vendor's registration number or Federal Employer
15 Identification Number), the purchase price, and the amount of
16 Manufacturer's Purchase Credit earned on each purchase.
17 A purchaser using Manufacturer's Purchase Credit shall
18 sign and file an annual Report of Manufacturer's Purchase
19 Credit Used for each calendar year no later than the last day
20 of the sixth month following the calendar year in which a
21 Manufacturer's Purchase Credit is used. A Report of
22 Manufacturer's Purchase Credit Used shall be filed on forms
23 as prescribed or approved by the Department and shall state,
24 for each month of the calendar year: (i) the total purchase
25 price of production related tangible personal property
26 purchased from Illinois suppliers; (ii) the total purchase
27 price of production related tangible personal property
28 purchased from out-of-state suppliers; (iii) the total amount
29 of credit used during such month; and (iv) such other
30 information as the Department may reasonably require. A
31 purchaser using Manufacturer's Purchase Credit shall maintain
32 records that identify, as to each purchase of production
33 related tangible personal property on which the purchaser
34 used Manufacturer's Purchase Credit, the vendor (including,
-499- LRB9000671KDdvA
1 if applicable, either the vendor's registration number or
2 Federal Employer Identification Number), the purchase price,
3 and the amount of Manufacturer's Purchase Credit used on each
4 purchase.
5 No annual report shall be filed before May 1, 1996. A
6 purchaser that fails to file an annual Report of
7 Manufacturer's Purchase Credit Earned or an annual Report of
8 Manufacturer's Purchase Credit Used by the last day of the
9 sixth month following the end of the calendar year shall
10 forfeit all Manufacturer's Purchase Credit for that calendar
11 year unless it establishes that its failure to file was due
12 to reasonable cause. Manufacturer's Purchase Credit reports
13 may be amended to report and claim credit on qualifying
14 purchases not previously reported at any time before the
15 credit would have expired, unless both the Department and the
16 purchaser have agreed to an extension of the statute of
17 limitations for the issuance of a notice of tax liability as
18 provided in Section 50-145 of this Code 4 of the Retailers'
19 Occupation Tax Act. If the time for assessment or refund has
20 been extended, then amended reports for a calendar year may
21 be filed at any time prior to the date to which the statute
22 of limitations for the calendar year or portion thereof has
23 been extended. No Manufacturer's Purchase Credit report filed
24 with the Department for periods prior to January 1, 1995
25 shall be approved. Manufacturer's Purchase Credit claimed on
26 an amended report may be used to satisfy tax liability under
27 Article 15 or Article 25 of this Code the Use Tax Act or the
28 Service Use Tax Act (i) on qualifying purchases of production
29 related tangible personal property made after the date the
30 amended report is filed or (ii) assessed by the Department on
31 qualifying purchases of production related tangible personal
32 property made in the case of manufacturers on or after
33 January 1, 1995, or in the case of graphic arts producers on
34 or after July 1, 1996.
-500- LRB9000671KDdvA
1 If the purchaser is not the manufacturer or a graphic
2 arts producer, but rents or leases the use of the property to
3 a manufacturer or graphic arts producer, the purchaser may
4 earn, report, and use Manufacturer's Purchase Credit in the
5 same manner as a manufacturer or graphic arts producer.
6 A purchaser shall not be entitled to any Manufacturer's
7 Purchase Credit for a purchase that is required to be
8 reported and is not timely reported as provided in this
9 Section. A purchaser remains liable for (i) any tax that was
10 satisfied by use of a Manufacturer's Purchase Credit, as of
11 the date of purchase, if that use is not timely reported as
12 required in this Section and (ii) for any applicable
13 penalties and interest for failing to pay the tax when due.
14 (Source: P.A. 88-547, eff. 6-30-94; 89-89, eff. 6-30-95;
15 89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)
16 (35 ILCS 105/3-90)
17 Section 90-20. Sec. 3-90. Sunset of exemptions, credits,
18 and deductions. The application of every exemption, credit,
19 and deduction against taxes tax imposed by this Code Act that
20 becomes law after September 16, 1994 the effective date of
21 this amendatory Act of 1994 shall be limited by a reasonable
22 and appropriate sunset date. A taxpayer is not entitled to
23 take the exemption, credit, or deduction beginning on the
24 sunset date and thereafter. If a reasonable and appropriate
25 sunset date is not specified in the Public Act that creates
26 the exemption, credit, or deduction, a taxpayer shall not be
27 entitled to take the exemption, credit, or deduction
28 beginning 5 years after the effective date of the Public Act
29 creating the exemption, credit, or deduction and thereafter.
30 (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff. 8-4-95.)
31 (35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
32 Section 15-35. Method of stating tax. Sec. 3a. The tax
-501- LRB9000671KDdvA
1 imposed by this Article the Act shall when collected be
2 stated as a distinct item separate and apart from the selling
3 price of the tangible personal property. However, where it is
4 not possible to state the sales tax separately in situations
5 such as sales from vending machines or sales of liquor by the
6 drink the Department may by rule exempt such sales from this
7 requirement so long as purchasers are notified by a sign that
8 the tax is included in the selling price.
9 (Source: P.A. 84-229.)
10 (35 ILCS 105/4) (from Ch. 120, par. 439.4)
11 Section 90-25. Delivery in State.
12 (a) For purposes of the use tax and the service use tax,
13 Sec. 4. evidence that tangible personal property was sold by
14 any person for delivery to a person residing or engaged in
15 business in this State shall be prima facie evidence that
16 such tangible personal property was sold for use in this
17 State.
18 (b) For purposes of the service occupation tax, evidence
19 that tangible personal property was sold by any supplier for
20 delivery to a person residing or engaged in business in this
21 State shall be prima facie evidence that such tangible
22 personal property was sold for the purpose of resale as an
23 incident to a sale of service taxable under Article 20.
24 (Source: Laws 1955, p. 2027.)
25 (35 ILCS 105/5) (from Ch. 120, par. 439.5)
26 Section 60-20. Receipts; list of agents.
27 (a) For purposes of the use tax, Sec. 5. except as to
28 motor vehicles and other items of tangible personal property
29 that must be titled or registered under an Illinois law, but
30 that cannot be so titled or registered without a use tax
31 receipt or exemption determination from the Department, every
32 retailer maintaining a place of business in this State and
-502- LRB9000671KDdvA
1 making sales of tangible personal property for use in this
2 State (whether those sales are made within or without this
3 State) shall, when collecting the tax as provided in Section
4 15-20 3-45 of this Code Act from the purchaser, give to the
5 purchaser (if demanded by the purchaser) a receipt for the
6 tax in the manner and form prescribed by the Department.
7 (b) For purposes of the service occupation tax and the
8 service use tax, every supplier or serviceman maintaining a
9 place of business in this State and (i) making sales of
10 tangible personal property for the purpose of resale as an
11 incident to the sale of service taxable under this Code or
12 (ii) making sales of service involving the incidental
13 transfer of property for use in this State (whether those
14 sales are made within or without this State) shall, when
15 collecting the taxes as provided in Sections 20-20 and 25-20
16 of this Code from the serviceman or purchaser, give to the
17 serviceman or purchaser, if demanded by the serviceman or
18 purchaser, a receipt for the tax in the manner and form
19 provided by the Department.
20 (c) A The receipt issued under this Section shall be
21 sufficient to relieve the purchaser or serviceman from
22 further liability for the tax to which the receipt may refer.
23 Each retailer, supplier, or serviceman shall list with the
24 Department the names and addresses of all of his or her
25 agents operating in this State and the location of any and
26 all of his or her distribution or sales houses, offices, or
27 other places of business in this State.
28 (Source: P.A. 86-1475.)
29 (35 ILCS 105/6) (from Ch. 120, par. 439.6)
30 Section 35-10. Certificate of registration; use tax.
31 Sec. 6. A retailer maintaining a place of business in this
32 State, if required to register for purposes of under the
33 retailers' occupation tax Act, need not obtain an additional
-503- LRB9000671KDdvA
1 certificate of registration for purposes of the use tax under
2 this Act, but shall be deemed to be sufficiently registered
3 by virtue of his being registered under the provisions of
4 this Code Retailers' Occupation Tax Act. Every retailer
5 maintaining a place of business in this State, if not
6 required to register for purposes of under the retailers'
7 occupation tax Act, shall apply to the Department (upon a
8 form prescribed and furnished by the Department) for a
9 certificate of registration for purposes of the use tax under
10 this Act. In completing such application, the applicant shall
11 furnish such information as the Department may reasonably
12 require.
13 Section 35-30. Issuance of certificate of registration;
14 sub-certificate of registration.
15 (a) 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 of an
18 application for Certificate of Registration, the Department
19 shall issue to such applicant, without charge, a certificate
20 of registration which shall permit the person to whom it is
21 issued to act as a retailer, supplier, or serviceman in this
22 State to the applicant. The Such certificate of registration
23 shall be conspicuously displayed at the place of business
24 address which the person so registered applicant states in
25 his application to be the principal place of business or
26 location from which he will act as a retailer, supplier, or
27 serviceman in this State.
28 No certificate of registration issued to a taxpayer who
29 files returns required by this Code on a monthly basis shall
30 be valid after the expiration of 5 years from the date of its
31 issuance or last renewal. The expiration date of a
32 sub-certificate of registration shall be that of the
33 certificate of registration to which the sub-certificate
-504- LRB9000671KDdvA
1 relates. A certificate of registration shall automatically
2 be renewed, subject to revocation as provided by this Code,
3 for an additional 5 years from the date of its expiration
4 unless otherwise notified by the Department as provided by
5 this paragraph. Where a taxpayer to whom a certificate of
6 registration is issued under this Code is in default to the
7 State of Illinois for moneys due under this Code or any other
8 State tax law or municipal or county ordinance administered
9 or enforced by the Department, the Department shall, not less
10 than 120 days before the expiration date of such certificate
11 of registration, give notice to the taxpayer to whom the
12 certificate was issued, of the amount of tax, penalty and
13 interest due and owing from the taxpayer, and that the
14 certificate of registration shall not be automatically
15 renewed upon its expiration date unless the taxpayer, on or
16 before the date of expiration, has paid the defaulted amount
17 in full. A taxpayer to whom such a notice is issued shall be
18 deemed an applicant for renewal. The Department shall
19 promulgate regulations establishing procedures for taxpayers
20 who file returns on a monthly basis but desire and qualify to
21 change to a quarterly or yearly filing basis and will no
22 longer be subject to renewal under this Section, and for
23 taxpayers who file returns on a yearly or quarterly basis but
24 who desire or are required to change to a monthly filing
25 basis and will be subject to renewal under this Section.
26 The Department may in its discretion approve renewal by
27 an applicant who is in default if, at the time of application
28 for renewal, the applicant pays to the Department such
29 percentage of the defaulted amount as may be determined by
30 the Department and agrees in writing to waive all limitations
31 upon the Department for collection of the remaining defaulted
32 amount to the Department over a period not to exceed 5 years
33 from the date of renewal of the certificate; however, no
34 renewal application submitted by an applicant who is in
-505- LRB9000671KDdvA
1 default shall be approved if the immediately preceding
2 renewal by the applicant was conditioned upon the installment
3 payment agreement described in this Section. The payment
4 agreement herein provided for shall be in addition to and not
5 in lieu of the security required by Section 35-25 of a
6 taxpayer who is no longer considered a prior continuous
7 compliance taxpayer. The execution of the payment agreement
8 as provided in this Code shall not toll the accrual of
9 interest at the statutory rate.
10 A certificate of registration issued under this Code more
11 than 5 years before the effective date of this amendatory Act
12 of 1989 shall expire and be subject to the renewal provisions
13 of this Section on the next anniversary of the date of
14 issuance of such certificate which occurs more than 6 months
15 after the effective date of this amendatory Act of 1989. A
16 certificate of registration issued less than 5 years before
17 the effective date of this amendatory Act of 1989 shall
18 expire and be subject to the renewal provisions of this
19 Section on the 5th anniversary of the issuance of the
20 certificate.
21 (b) If the person so registered states that he operates
22 applicant will act as a retailer in this State from other
23 places of business from which he acts as a retailer,
24 supplier, or serviceman in this State, or locations, he shall
25 list the addresses of such additional places of business or
26 locations in this application for Certificate of
27 Registration, and the Department shall furnish him with issue
28 a sub-certificate of registration to the applicant for each
29 such additional place of business, and the applicant shall
30 display the appropriate sub-certificate of registration at
31 each such place of business or location. All sub-certificates
32 Each Sub-Certificate of Registration shall be conspicuously
33 displayed at the place for which it is issued. Such
34 Sub-Certificate of registration shall bear the same
-506- LRB9000671KDdvA
1 registration number as that appearing upon the certificate of
2 registration to which such sub-certificates relate.
3 (c) If the applicant will sell tangible personal
4 property at retail through vending machines, the Department
5 shall furnish him with a sub-certificate of registration for
6 each such vending machine, and the applicant shall display
7 the appropriate sub-certificate of registration on each such
8 vending machine by attaching the sub-certificate of
9 registration to a conspicuous part of such vending machine.
10 Where the same person engages in 2 or more businesses
11 that are a retailer operates more than one place of business
12 which is subject to registration under this Code, which
13 Section and such businesses are substantially different in
14 character or are engaged in under different trade names or
15 are engaged in under other substantially dissimilar
16 circumstances (so that it is more practicable, from an
17 accounting, auditing or bookkeeping standpoint, for such
18 businesses to be separately registered), the Department may
19 require or permit such person (subject to the same
20 requirements concerning the furnishing of security as those
21 that are provided for in Section 35-25 as to each application
22 for a certificate of registration) to apply for and obtain a
23 separate certificate of registration for each such business
24 or for any of such businesses instead of registering such
25 person, as to all such businesses, under a single certificate
26 of registration supplemented by related sub-certificates of
27 registration. No Certificate of Registration shall be issued
28 to any person who is in default to the State of Illinois for
29 moneys due hereunder.
30 Section 60-10. Foreign retailers; permit to collect tax.
31 For purposes of the use tax, the service occupation tax, and
32 the service use tax, the Department may, in its discretion,
33 upon application, authorize the collection of the tax herein
-507- LRB9000671KDdvA
1 imposed by any retailer, supplier, or serviceman not
2 maintaining a place of business within this State, who, to
3 the satisfaction of the Department, furnishes adequate
4 security to insure collection and payment of the tax. Such
5 retailer, supplier, or serviceman shall be issued, without
6 charge, a permit to collect such tax. When so authorized, it
7 shall be the duty of such retailer, supplier, or serviceman
8 to collect the tax upon all tangible personal property sold
9 to his knowledge for use or for the purpose of resale as an
10 incident to the sale of a service within this State, in the
11 same manner and subject to the same requirements, including
12 the furnishing of a receipt to the purchaser or serviceman
13 (if demanded by the purchaser or serviceman), as a retailer,
14 supplier, or serviceman maintaining a place of business
15 within this State. The receipt given to the purchaser or
16 serviceman shall be sufficient to relieve him from further
17 tax liability for the tax to which such receipt may refer.
18 Such permit may be revoked by the Department as provided in
19 this Code herein.
20 (Source: Laws 1955, p. 2027.)
21 (35 ILCS 105/7) (from Ch. 120, par. 439.7)
22 Section 80-20. Advertisement of tax absorption. For
23 purposes of the use tax, the service occupation tax, and the
24 service use tax, Sec. 7. it is unlawful for (a) any retailer
25 to advertise, or hold out, or state to the public or to any
26 purchaser, consumer, or user, (b) any supplier to advertise,
27 hold out, or state to the public or to any serviceman, or (c)
28 any serviceman to advertise, hold out, or state to the public
29 or to any service customer, purchaser, consumer, or user,
30 directly or indirectly, that the tax imposed by Article 15,
31 Article 20, or Article 25 or any part thereof imposed by
32 Section 3 hereof will be assumed or absorbed by the retailer,
33 supplier, or serviceman or that they it will not be added to
-508- LRB9000671KDdvA
1 the selling price of the property sold or transferred as an
2 incident to a sale of service, or if added that it or any
3 part thereof will be refunded other than when the retailer,
4 supplier, or serviceman refunds the selling price and tax
5 because of the merchandise's being returned to the retailer,
6 supplier, or serviceman or other than when the retailer,
7 supplier, or serviceman credits or refunds the tax to the
8 purchaser, serviceman, or service customer to support a claim
9 filed with the Department under this Code the Retailers'
10 Occupation Tax Act or under this Act. Any person violating
11 any of the provisions of this Section within the this State
12 shall be guilty of a Class A misdemeanor.
13 (Source: P.A. 77-2830.)
14 (35 ILCS 105/8) (from Ch. 120, par. 439.8)
15 Section 60-5. Tax collected as debt owed to State;
16 exception. Sec. 8. The tax herein required to be collected by
17 any retailer pursuant to Article 15 this Act, any supplier
18 pursuant to Article 20, or any serviceman pursuant to Article
19 25, and any such tax collected by any retailer, supplier, or
20 serviceman shall constitute a debt owed by the retailer,
21 supplier, or serviceman to this State, except (i) when such
22 retailer is relieved of the duty of remitting such tax to the
23 Department by virtue of his being required to pay, and his in
24 fact paying, the tax imposed by Article 10 the "Retailers'
25 Occupation Tax Act" upon his gross receipts from the same
26 transaction, or (ii) when such serviceman is relieved of the
27 duty of remitting such tax to the Department by virtue of his
28 being required to pay, and his in fact paying, the tax
29 imposed by Article 20 upon his sale of service involving the
30 incidental transfer by him of the same property.
31 (Source: P. A. 76-222.)
32 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
-509- LRB9000671KDdvA
1 Section 50-110. Payment of tax by retailer or
2 serviceman.
3 (a) Except as provided in Sections 50-5 through 50-140,
4 the retailer filing the return under Sections 50-5 through
5 50-140 shall, at the time of filing such return, pay to the
6 Department the amount of tax imposed by this Code less a
7 discount of 2.1% prior to January 1, 1990 and 1.75% on and
8 after January 1, 1990, or $5 per calendar year, whichever is
9 greater, which is allowed to reimburse the retailer for the
10 expenses incurred in keeping records, preparing and filing
11 returns, remitting the tax and supplying data to the
12 Department on request. Any prepayment made pursuant to
13 Section 10-30 shall be included in the amount on which such
14 2.1% or 1.75% discount is computed.
15 (b) For purposes of the use tax, the service occupation
16 tax, and the service use tax, Sec. 9. Except as to motor
17 vehicles, watercraft, aircraft, and trailers that are
18 required to be registered with an agency of this State, each
19 retailer or serviceman required or authorized to collect the
20 taxes tax imposed by Articles 15, 20, or 25 this Act shall
21 pay to the Department the amount of such tax (except as
22 otherwise provided) at the time when he is required to file
23 his return for the period during which such tax was
24 collected, less a discount of 2.1% prior to January 1, 1990,
25 and 1.75% on and after January 1, 1990, or $5 per calendar
26 year, whichever is greater, which is allowed to reimburse the
27 retailer or serviceman for expenses incurred in collecting
28 the tax, keeping records, preparing and filing returns,
29 remitting the tax and supplying data to the Department on
30 request. For purposes of the use tax, this subsection shall
31 not apply to motor vehicles, watercraft, aircraft, and
32 trailers that are required to be registered with an agency of
33 this State.
34 (c) In the case of retailers who report and pay the tax
-510- LRB9000671KDdvA
1 on a transaction by transaction basis, as provided in
2 Sections 50-5 through 50-140 this Section, such discount
3 shall be taken with each such tax remittance instead of when
4 such retailer files his periodic return.
5 (d) For purposes of the use tax, a retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by Article 10 the Retailers' Occupation Tax Act, with respect
9 to the sale of the same property.
10 (e) For purposes of the service use tax, a serviceman
11 need not remit that part of any tax collected by him to the
12 extent that he is required to pay and does pay the tax
13 imposed by Article 20 with respect to his sale of service
14 involving the incidental transfer by him of the same
15 property.
16 Section 50-115. Conditional sales contract. For
17 purposes of the use tax and the service occupation tax, where
18 such tangible personal property is sold under a conditional
19 sales contract, or under any other form of sale wherein the
20 payment of the principal sum, or a part thereof, is extended
21 beyond the close of the period for which the return is filed,
22 the retailer or serviceman, in collecting the tax (except,
23 for purposes of the use tax only, as to motor vehicles,
24 watercraft, aircraft, and trailers that are required to be
25 registered with an agency of this State), may collect for
26 each tax return period, only the tax applicable to that part
27 of the selling price actually received during such tax return
28 period.
29 Section 50-15. Use tax returns. For purposes of the use
30 tax, except as provided in Sections 50-5 through 50-140 this
31 Section, on or before the twentieth day of each calendar
32 month, each such retailer required or authorized to collect
-511- LRB9000671KDdvA
1 the use tax shall file a return for the preceding calendar
2 month. Such return shall be filed on forms prescribed by the
3 Department and shall furnish such information as the
4 Department may reasonably require.
5 Section 50-30. Quarterly returns. The Department may
6 require returns to be filed on a quarterly basis. If so
7 required, a return for each calendar quarter shall be filed
8 on or before the twentieth day of the calendar month
9 following the end of such calendar quarter. The taxpayer
10 shall also file a return with the Department for each of the
11 first two months of each calendar quarter, on or before the
12 twentieth day of the following calendar month, stating:
13 (1) 1. the name of the seller;
14 (2) 2. the address of the principal place of
15 business from which he engages (i) in the business of
16 selling tangible personal property at retail in this
17 State or (ii) in business as a serviceman in this State;
18 (3) for purposes of the retailers' occupation tax
19 and the use tax, 3. the total amount of taxable receipts
20 received by him during the preceding calendar month from
21 sales of tangible personal property by him during such
22 preceding calendar month, including receipts from charge
23 and time sales, but less all deductions allowed by law
24 or, for purposes of the service occupation tax and the
25 service use tax, the total amount of taxable receipts
26 received by him during the preceding calendar month,
27 including receipts from charge and time sales but less
28 all deductions allowed by law;
29 (4) 4. the amount of credit provided in Section
30 10-30 2d of this Act;
31 (5) 5. the amount of tax due;
32 (6) for purposes of the use tax, the service
33 occupation tax, and the service use tax, 5-5. the
-512- LRB9000671KDdvA
1 signature of the taxpayer; and
2 (7) 6. such other reasonable information as the
3 Department may require.
4 Section 50-40. Failure to sign a return. If a taxpayer
5 fails to sign a return within 30 days after the proper notice
6 and demand for signature by the Department, the return shall
7 be considered valid and any amount shown to be due on the
8 return shall be deemed assessed.
9 Section 50-100. Electronic funds transfer.
10 (a) Beginning October 1, 1993, a taxpayer who has an
11 average monthly tax liability of $150,000 or more shall make
12 all payments required by rules of the Department by
13 electronic funds transfer. Beginning October 1, 1994, a
14 taxpayer who has an average monthly tax liability of $100,000
15 or more shall make all payments required by rules of the
16 Department by electronic funds transfer. Beginning October 1,
17 1995, a taxpayer who has an average monthly tax liability of
18 $50,000 or more shall make all payments required by rules of
19 the Department by electronic funds transfer. The term
20 "average monthly tax liability" shall be means the sum of the
21 taxpayer's liabilities under this Code Act, and under all
22 other State and local occupation and use tax laws
23 administered by the Department, for the immediately preceding
24 calendar year divided by 12.
25 (b) Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers required
28 to make payments by electronic funds transfer shall make
29 those payments for a minimum of one year beginning on October
30 1.
31 (c) Any taxpayer not required to make payments by
32 electronic funds transfer may make payments by electronic
-513- LRB9000671KDdvA
1 funds transfer with the permission of the Department.
2 (d) All taxpayers required to make payment by electronic
3 funds transfer and any taxpayers authorized to voluntarily
4 make payments by electronic funds transfer shall make those
5 payments in the manner authorized by the Department.
6 (e) The Department shall adopt such rules as are
7 necessary to effectuate a program of electronic funds
8 transfer and the requirements of Sections 50-5 through 50-140
9 this Section.
10 Section 50-120. Quarter-monthly payments.
11 (a) If the taxpayer's average monthly tax liability to
12 the Department under this Code excluding any liability for
13 prepaid sales tax to be remitted in accordance with Section
14 10-30, Act, the Retailers' Occupation Tax Act, the Service
15 Occupation Tax Act, the Service Use Tax Act was $10,000 or
16 more during the preceding 4 complete calendar quarters, he
17 shall file a return with the Department each month by the
18 20th day of the month next following the month during which
19 such tax liability is incurred and shall make payments to the
20 Department on or before the 7th, 15th, 22nd and last day of
21 the month during which such liability is incurred. If the
22 month during which such tax liability is incurred began prior
23 to January 1, 1985, each payment shall be in an amount equal
24 to 1/4 of the taxpayer's actual liability for the month or an
25 amount set by the Department not to exceed 1/4 of the average
26 monthly liability of the taxpayer to the Department for the
27 preceding 4 complete calendar quarters (excluding the month
28 of highest liability and the month of lowest liability in
29 such 4 quarter period). If the month during which such tax
30 liability is incurred begins on or after January 1, 1985, and
31 prior to January 1, 1987, each payment shall be in an amount
32 equal to 22.5% of the taxpayer's actual liability for the
33 month or 27.5% of the taxpayer's liability for the same
-514- LRB9000671KDdvA
1 calendar month of the preceding year. If the month during
2 which such tax liability is incurred begins on or after
3 January 1, 1987, and prior to January 1, 1988, each payment
4 shall be in an amount equal to 22.5% of the taxpayer's actual
5 liability for the month or 26.25% of the taxpayer's liability
6 for the same calendar month of the preceding year. If the
7 month during which such tax liability is incurred begins on
8 or after January 1, 1988, and prior to January 1, 1989, or
9 begins on or after January 1, 1996, each payment shall be in
10 an amount equal to 22.5% of the taxpayer's actual liability
11 for the month or 25% of the taxpayer's liability for the same
12 calendar month of the preceding year. If the month during
13 which such tax liability is incurred begins on or after
14 January 1, 1989, and prior to January 1, 1996, each payment
15 shall be in an amount equal to 22.5% of the taxpayer's actual
16 liability for the month or 25% of the taxpayer's liability
17 for the same calendar month of the preceding year or 100% of
18 the taxpayer's actual liability for the quarter monthly
19 reporting period. The amount of such quarter monthly
20 payments shall be credited against the final tax liability of
21 the taxpayer's return for that month. Once applicable, the
22 requirement of the making of quarter monthly payments to the
23 Department by taxpayers having an average monthly tax
24 liability of $10,000 or more as determined in the manner
25 provided above shall continue until such taxpayer's average
26 monthly liability to the Department during the preceding 4
27 complete calendar quarters (excluding the month of highest
28 liability and the month of lowest liability) is less than
29 $9,000, or until such taxpayer's average monthly liability to
30 the Department as computed for each calendar quarter of the 4
31 preceding complete calendar quarter period is less than
32 $10,000. However, if a taxpayer can show the Department that
33 a substantial change in the taxpayer's business has occurred
34 which causes the taxpayer to anticipate that his average
-515- LRB9000671KDdvA
1 monthly tax liability for the reasonably foreseeable future
2 will fall below $10,000, then such taxpayer may petition the
3 Department for a change in such taxpayer's reporting status.
4 The Department shall change such taxpayer's reporting status
5 unless it finds that such change is seasonal in nature and
6 not likely to be long term. If any such quarter monthly
7 payment is not paid at the time or in the amount required by
8 this Section, then the taxpayer's 2.1% or 1.75% vendors'
9 discount shall be reduced by 2.1% or 1.75%, as the case may
10 be, of the difference between the minimum amount due as a
11 payment and the amount of such quarter monthly payment
12 actually and timely paid, and the taxpayer shall be liable
13 for penalties and interest on such difference, except insofar
14 as the taxpayer has previously made payments for that month
15 to the Department in excess of the minimum payments
16 previously due as provided in Sections 50-5 through 50-140
17 this Section. The Department shall make reasonable rules and
18 regulations to govern the quarter monthly payment amount and
19 quarter monthly payment dates for taxpayers who file on other
20 than a calendar monthly basis.
21 (b) Without regard to whether a taxpayer is required to
22 make quarter monthly payments as specified above, any
23 taxpayer who is required by Section 10-30 to collect and
24 remit prepaid taxes and has collected prepaid taxes which
25 average in excess of $25,000 per month during the preceding 2
26 complete calendar quarters, shall file a return with the
27 Department as required by Section 10-40 and shall make
28 payments to the Department on or before the 7th, 15th, 22nd
29 and last day of the month during which such liability is
30 incurred. If the month during which such tax liability is
31 incurred began prior to the effective date of this amendatory
32 Act of 1985, each payment shall be in an amount not less than
33 22.5% of the taxpayer's actual liability under Section 10-30.
34 If the month during which such tax liability is incurred
-516- LRB9000671KDdvA
1 begins on or after January 1, 1986, each payment shall be in
2 an amount equal to 22.5% of the taxpayer's actual liability
3 for the month or 27.5% of the taxpayer's liability for the
4 same calendar month of the preceding calendar year. If the
5 month during which such tax liability is incurred begins on
6 or after January 1, 1987, each payment shall be in an amount
7 equal to 22.5% of the taxpayer's actual liability for the
8 month or 26.25% of the taxpayer's liability for the same
9 calendar month of the preceding year. The amount of such
10 quarter monthly payments shall be credited against the final
11 tax liability of the taxpayer's return for that month filed
12 under Sections 50-5 through 50-140 or Section 10-40, as the
13 case may be. Once applicable, the requirement of the making
14 of quarter monthly payments to the Department pursuant to
15 this subsection shall continue until such taxpayer's average
16 monthly prepaid tax collections during the preceding 2
17 complete calendar quarters is $25,000 or less. If any such
18 quarter monthly payment is not paid at the time or in the
19 amount required, the taxpayer shall be liable for penalties
20 and interest on such difference, except insofar as the
21 taxpayer has previously made payments for that month in
22 excess of the minimum payments previously due.
23 Section 50-125. Credit memorandum.
24 (a) If any payment provided for in Sections 50-5 through
25 50-140 exceeds the taxpayer's liabilities under this Code, as
26 shown on an original monthly return, the Department shall, if
27 requested by the taxpayer, issue to the taxpayer a credit
28 memorandum no later than 30 days after the date of payment.
29 The credit evidenced by such credit memorandum may be
30 assigned by the taxpayer to a similar taxpayer under this
31 Code, in accordance with reasonable rules and regulations to
32 be prescribed by the Department. If no such request is made,
33 the taxpayer may credit such excess payment against tax
-517- LRB9000671KDdvA
1 liability subsequently to be remitted to the Department under
2 this Code, in accordance with reasonable rules and
3 regulations prescribed by the Department.
4 (b) For purposes of the use tax, if any such payment
5 provided for in Sections 50-5 through 50-140 this Section
6 exceeds the taxpayer's liabilities under this Code Act, the
7 Retailers' Occupation Tax Act, the Service Occupation Tax Act
8 and the Service Use Tax Act, as shown by an original monthly
9 return, the Department shall issue to the taxpayer a credit
10 memorandum no later than 30 days after the date of payment,
11 which memorandum may be submitted by the taxpayer to the
12 Department in payment of tax liability subsequently to be
13 remitted by the taxpayer to the Department or be assigned by
14 the taxpayer to a similar taxpayer under this Code Act, the
15 Retailers' Occupation Tax Act, the Service Occupation Tax Act
16 or the Service Use Tax Act, in accordance with reasonable
17 rules and regulations to be prescribed by the Department,
18 except that if such excess payment is shown on an original
19 monthly return and is made after December 31, 1986, no credit
20 memorandum shall be issued, unless requested by the taxpayer.
21 If no such request is made, the taxpayer may credit such
22 excess payment against tax liability subsequently to be
23 remitted by the taxpayer to the Department under this Code
24 Act, the Retailers' Occupation Tax Act, the Service
25 Occupation Tax Act or the Service Use Tax Act, in accordance
26 with reasonable rules and regulations prescribed by the
27 Department.
28 (c) If the Department subsequently determines that all or
29 any part of the credit taken was not actually due to the
30 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount
31 shall be reduced by 2.1% or 1.75% of the difference between
32 the credit taken and that actually due, and the taxpayer
33 shall be liable for penalties and interest on such
34 difference.
-518- LRB9000671KDdvA
1 Section 50-35. Authorization to file returns on quarter
2 annual or annual basis.
3 (a) If the retailer or serviceman is otherwise required
4 to file a monthly return and if the retailer's or
5 serviceman's average monthly tax liability to the Department
6 does not exceed $200, the Department may authorize his
7 returns to be filed on a quarter annual basis, with the
8 return for January, February, and March of a given year being
9 due by April 20 of such year; with the return for April, May
10 and June of a given year being due by July 20 of such year;
11 with the return for July, August and September of a given
12 year being due by October 20 of such year, and with the
13 return for October, November and December of a given year
14 being due by January 20 of the following year.
15 (b) If the retailer or serviceman is otherwise required
16 to file a monthly or quarterly return and if the retailer's
17 or serviceman's average monthly tax liability with to the
18 Department does not exceed $50, the Department may authorize
19 his returns to be filed on an annual basis, with the return
20 for a given year being due by January 20 of the following
21 year.
22 (c) Such quarter annual and annual returns, as to form
23 and substance, shall be subject to the same requirements as
24 monthly returns.
25 Section 50-60. Cessation of business. Notwithstanding
26 any other provision in this Code Act concerning the time
27 within which a retailer or serviceman may file his return, in
28 the case of any retailer or serviceman who ceases to engage
29 in a kind of business which makes him responsible for filing
30 returns under this Code Act, such retailer or serviceman
31 shall file a final return under this Code Act with the
32 Department not more than one month after discontinuing such
33 business.
-519- LRB9000671KDdvA
1 Section 50-80. Separate return for certain registered
2 property. In addition, With respect to motor vehicles,
3 watercraft, aircraft, and trailers that are required to be
4 registered with an agency of this State, every retailer
5 selling this kind of tangible personal property shall file,
6 with the Department, upon a form to be prescribed and
7 supplied by the Department, a separate return for each such
8 item of tangible personal property which the retailer sells,
9 except that where, in the same transaction, a retailer of
10 aircraft, watercraft, motor vehicles or trailers transfers
11 more than one aircraft, watercraft, motor vehicle or trailer
12 to another aircraft, watercraft, motor vehicle retailer or
13 trailer retailer for the purpose of resale, that seller for
14 resale may report the transfer of all the aircraft,
15 watercraft, motor vehicles or trailers involved in that
16 transaction to the Department on the same uniform
17 invoice-transaction reporting return form. For purposes of
18 this Section, "watercraft" means a Class 2, Class 3, or Class
19 4 watercraft as defined in Section 3-2 of the Boat
20 Registration and Safety Act, a personal watercraft, or any
21 boat equipped with an inboard motor.
22 Section 50-90. Transaction reporting return.
23 (a) The transaction reporting return, in the case of
24 motor vehicles or trailers that are required to be registered
25 with an agency of this State, shall be the same document as
26 the Uniform Invoice referred to in Section 5-402 of the
27 Illinois Vehicle Code and must show the name and address of
28 the seller; the name and address of the purchaser; the amount
29 of the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 5-120 2 of this Act
33 allows an exemption for the value of traded-in property; the
-520- LRB9000671KDdvA
1 balance payable after deducting such trade-in allowance from
2 the total selling price; the amount of tax due from the
3 retailer with respect to such transaction; the amount of tax
4 collected from the purchaser by the retailer on such
5 transaction (or satisfactory evidence that such tax is not
6 due in that particular instance, if that is claimed to be the
7 fact); the place and date of the sale; a sufficient
8 identification of the property sold; such other information
9 as is required in Section 5-402 of the Illinois Vehicle Code,
10 and such other information as the Department may reasonably
11 require.
12 (b) The transaction reporting return in the case of
13 watercraft or and aircraft must show the name and address of
14 the seller; the name and address of the purchaser; the amount
15 of the selling price including the amount allowed by the
16 retailer for traded-in property, if any; the amount allowed
17 by the retailer for the traded-in tangible personal property,
18 if any, to the extent to which Section 5-120 2 of this Act
19 allows an exemption for the value of traded-in property; the
20 balance payable after deducting such trade-in allowance from
21 the total selling price; the amount of tax due from the
22 retailer with respect to such transaction; the amount of tax
23 collected from the purchaser by the retailer on such
24 transaction (or satisfactory evidence that such tax is not
25 due in that particular instance, if that is claimed to be the
26 fact); the place and date of the sale, a sufficient
27 identification of the property sold, and such other
28 information as the Department may reasonably require.
29 (c) Such transaction reporting return shall be filed not
30 later than 20 days after the day date of delivery of the item
31 that is being sold, but may be filed by the retailer at any
32 time sooner than that if he chooses to do so. The
33 transaction reporting return and tax remittance or proof of
34 exemption from the Illinois use tax that is imposed by this
-521- LRB9000671KDdvA
1 Act may be transmitted to the Department by way of the State
2 agency with which, or State officer with whom, the tangible
3 personal property must be titled or registered (if titling or
4 registration is required) if the Department and such agency
5 or State officer determine that this procedure will expedite
6 the processing of applications for title or registration.
7 (d) With each such transaction reporting return, the
8 retailer shall remit the proper amount of tax due (or shall
9 submit satisfactory evidence that the sale is not taxable if
10 that is the case), to the Department or its agents, whereupon
11 the Department shall issue, in the purchaser's name, a use
12 tax receipt (or a certificate of exemption if the Department
13 is satisfied that the particular sale is tax exempt) which
14 such purchaser may submit to the agency with which, or State
15 officer with whom, he must title or register the tangible
16 personal property that is involved (if titling or
17 registration is required) in support of such purchaser's
18 application for an Illinois certificate or other evidence of
19 title or registration to such tangible personal property.
20 (e) No retailer's failure or refusal to remit tax under
21 this Code Act precludes a user, who has paid the proper tax
22 to the retailer, from obtaining his certificate of title or
23 other evidence of title or registration (if titling or
24 registration is required) upon satisfying the Department that
25 such user has paid the proper tax (if tax is due) to the
26 retailer. The Department shall adopt appropriate rules to
27 carry out the mandate of this subsection paragraph.
28 (f) If the user who would otherwise pay tax to the
29 retailer wants the transaction reporting return filed and the
30 payment of the tax or proof of exemption made to the
31 Department before the retailer is willing to take these
32 actions and such user has not paid the tax to the retailer,
33 such user may certify to the fact of such delay by the
34 retailer, and may (upon the Department being satisfied of the
-522- LRB9000671KDdvA
1 truth of such certification) transmit the information
2 required by the transaction reporting return and the
3 remittance for tax or proof of exemption directly to the
4 Department and obtain his tax receipt or exemption
5 determination, in which event the transaction reporting
6 return and tax remittance (if a tax payment was required)
7 shall be credited by the Department to the proper retailer's
8 account with the Department, but without the 2.1% or 1.75%
9 discount provided for in this Section 50-110 being allowed.
10 When the user pays the tax directly to the Department, he
11 shall pay the tax in the same amount and in the same form in
12 which it would be remitted if the tax had been remitted to
13 the Department by the retailer.
14 Section 50-105. Refunds.
15 (a) Refunds made by the seller during the preceding
16 return period to purchasers, on account of tangible personal
17 property returned to the seller, shall be allowed as a
18 deduction under subdivision 5 of his monthly or quarterly
19 return, as the case may be, in case the seller had
20 theretofore included the receipts from the sale of such
21 tangible personal property in a return filed by him and had
22 paid the tax imposed by Article 10 with respect to such
23 receipts.
24 (b) For purposes of the use tax, the service occupation
25 tax, and the service use tax, where a retailer or serviceman
26 collects the tax with respect to the selling price of
27 tangible personal property which he sells and the purchaser
28 thereafter returns such tangible personal property and the
29 retailer or serviceman refunds the selling price thereof to
30 the purchaser, such retailer or serviceman shall also refund,
31 to the purchaser, the tax so collected from the purchaser.
32 When filing his return for the period in which he refunds
33 such tax to the purchaser, the retailer or serviceman may
-523- LRB9000671KDdvA
1 deduct the amount of the tax so refunded by him to the
2 purchaser from any other service use tax, service occupation
3 tax, retailers' occupation tax or use tax which such retailer
4 or serviceman may be required to pay or remit to the
5 Department, as shown by such return, provided that if the
6 amount of the tax to be deducted was previously remitted to
7 the Department by such retailer or serviceman. If the
8 retailer or serviceman has not previously remitted the amount
9 of such tax to the Department, he shall be is entitled to no
10 deduction hereunder under this Act upon refunding such tax to
11 the purchaser.
12 Section 50-70. Selling price of property on return.
13 (a) For purposes of the use tax, any retailer filing a
14 return under Sections 50-5 through 50-140 this Section shall
15 also include (for the purpose of paying tax thereon) the
16 total tax covered by such return upon the selling price of
17 tangible personal property purchased by him at retail from a
18 retailer, but as to which the tax imposed by Article 15 this
19 Act was not collected from the retailer filing such return,
20 and such retailer shall remit the amount of such tax to the
21 Department when filing such return.
22 (b) For purposes of the service use tax, any serviceman
23 filing a return hereunder shall also include the total tax
24 upon the selling price of tangible personal property
25 purchased for use by him as an incident to a sale of service,
26 and such serviceman shall remit the amount of such tax to the
27 Department when filing such return.
28 Section 50-75. Joint returns.
29 (a) For purposes of the use tax, if experience indicates
30 such action to be practicable, the Department may prescribe
31 and furnish a combination or joint return which will enable
32 retailers, who are required to file returns for the taxes
-524- LRB9000671KDdvA
1 imposed in Article 10 and Article 15 hereunder and also under
2 the Retailers' Occupation Tax Act, to furnish all the return
3 information required for by both taxes Acts on the one form.
4 (b) For purposes of the service use tax, if experience
5 indicates such action to be practicable, the Department may
6 prescribe and furnish a combination or joint return which
7 will enable servicemen, who are required to file returns for
8 the taxes imposed by Articles 20 and 25, to furnish all the
9 return information required by both taxes on the one form.
10 (c) For purposes of the service occupation tax, if
11 experience indicates such action to be practicable, the
12 Department may prescribe and furnish a combination or joint
13 return which will enable servicemen, who are required to file
14 returns for the tax imposed by Article 20 and also the taxes
15 imposed by Articles 10, 15, and 25, to furnish all the return
16 information required by all said taxes on the one form.
17 Section 50-65. Multiple businesses. Where the same
18 person retailer has more than one business registered with
19 the Department under separate registrations registration
20 under this Code Act, such person retailer may not file each
21 return that is due as a single return covering all such
22 registered businesses, but shall file separate returns for
23 each such registered business.
24 Section 85-10. Disposition of use tax receipts. This
25 Section shall apply to the use tax only. Beginning January 1,
26 1990, each month the Department shall pay into the State and
27 Local Sales Tax Reform Fund, a special fund in the State
28 Treasury which is hereby created, the net revenue realized
29 for the preceding month from the 1% tax on sales of food for
30 human consumption which is to be consumed off the premises
31 where it is sold (other than alcoholic beverages, soft drinks
32 and food which has been prepared for immediate consumption)
-525- LRB9000671KDdvA
1 and prescription and nonprescription medicines, drugs,
2 medical appliances and insulin, urine testing materials,
3 syringes and needles used by diabetics.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the County and Mass Transit District Fund 4%
6 of the net revenue realized for the preceding month from the
7 6.25% general rate on the selling price of tangible personal
8 property which is purchased outside Illinois at retail from a
9 retailer and which is titled or registered by an agency of
10 this State's government.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the State and Local Sales Tax Reform Fund, a
13 special fund in the State Treasury, 20% of the net revenue
14 realized for the preceding month from the 6.25% general rate
15 on the selling price of tangible personal property, other
16 than tangible personal property which is purchased outside
17 Illinois at retail from a retailer and which is titled or
18 registered by an agency of this State's government.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the Local Government Tax Fund 16% of the net
21 revenue realized for the preceding month from the 6.25%
22 general rate on the selling price of tangible personal
23 property which is purchased outside Illinois at retail from a
24 retailer and which is titled or registered by an agency of
25 this State's government.
26 Of the remainder of the moneys received by the Department
27 pursuant to Article 15, disposition of funds shall be made as
28 provided in Section 85-25. this Act, (a) 1.75% thereof shall
29 be paid into the Build Illinois Fund and (b) prior to July 1,
30 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
31 be paid into the Build Illinois Fund; provided, however, that
32 if in any fiscal year the sum of (1) the aggregate of 2.2% or
33 3.8%, as the case may be, of the moneys received by the
34 Department and required to be paid into the Build Illinois
-526- LRB9000671KDdvA
1 Fund pursuant to Section 3 of the Retailers' Occupation Tax
2 Act, Section 9 of the Use Tax Act, Section 9 of the Service
3 Use Tax Act, and Section 9 of the Service Occupation Tax Act,
4 such Acts being hereinafter called the "Tax Acts" and such
5 aggregate of 2.2% or 3.8%, as the case may be, of moneys
6 being hereinafter called the "Tax Act Amount", and (2) the
7 amount transferred to the Build Illinois Fund from the State
8 and Local Sales Tax Reform Fund shall be less than the Annual
9 Specified Amount (as defined in Section 3 of the Retailers'
10 Occupation Tax Act), an amount equal to the difference shall
11 be immediately paid into the Build Illinois Fund from other
12 moneys received by the Department pursuant to the Tax Acts;
13 and further provided, that if on the last business day of any
14 month the sum of (1) the Tax Act Amount required to be
15 deposited into the Build Illinois Bond Account in the Build
16 Illinois Fund during such month and (2) the amount
17 transferred during such month to the Build Illinois Fund from
18 the State and Local Sales Tax Reform Fund shall have been
19 less than 1/12 of the Annual Specified Amount, an amount
20 equal to the difference shall be immediately paid into the
21 Build Illinois Fund from other moneys received by the
22 Department pursuant to the Tax Acts; and, further provided,
23 that in no event shall the payments required under the
24 preceding proviso result in aggregate payments into the Build
25 Illinois Fund pursuant to this clause (b) for any fiscal year
26 in excess of the greater of (i) the Tax Act Amount or (ii)
27 the Annual Specified Amount for such fiscal year; and,
28 further provided, that the amounts payable into the Build
29 Illinois Fund under this clause (b) shall be payable only
30 until such time as the aggregate amount on deposit under each
31 trust indenture securing Bonds issued and outstanding
32 pursuant to the Build Illinois Bond Act is sufficient, taking
33 into account any future investment income, to fully provide,
34 in accordance with such indenture, for the defeasance of or
-527- LRB9000671KDdvA
1 the payment of the principal of, premium, if any, and
2 interest on the Bonds secured by such indenture and on any
3 Bonds expected to be issued thereafter and all fees and costs
4 payable with respect thereto, all as certified by the
5 Director of the Bureau of the Budget. If on the last
6 business day of any month in which Bonds are outstanding
7 pursuant to the Build Illinois Bond Act, the aggregate of the
8 moneys deposited in the Build Illinois Bond Account in the
9 Build Illinois Fund in such month shall be less than the
10 amount required to be transferred in such month from the
11 Build Illinois Bond Account to the Build Illinois Bond
12 Retirement and Interest Fund pursuant to Section 13 of the
13 Build Illinois Bond Act, an amount equal to such deficiency
14 shall be immediately paid from other moneys received by the
15 Department pursuant to the Tax Acts to the Build Illinois
16 Fund; provided, however, that any amounts paid to the Build
17 Illinois Fund in any fiscal year pursuant to this sentence
18 shall be deemed to constitute payments pursuant to clause (b)
19 of the preceding sentence and shall reduce the amount
20 otherwise payable for such fiscal year pursuant to clause (b)
21 of the preceding sentence. The moneys received by the
22 Department pursuant to this Act and required to be deposited
23 into the Build Illinois Fund are subject to the pledge, claim
24 and charge set forth in Section 12 of the Build Illinois Bond
25 Act.
26 Subject to payment of amounts into the Build Illinois
27 Fund as provided in this Section and Section 85-25,
28 distribution of funds shall be made as provided in Section
29 85-30 the preceding paragraph or in any amendment thereto
30 hereafter enacted, the following specified monthly
31 installment of the amount requested in the certificate of the
32 Chairman of the Metropolitan Pier and Exposition Authority
33 provided under Section 8.25f of the State Finance Act, but
34 not in excess of the sums designated as "Total Deposit",
-528- LRB9000671KDdvA
1 shall be deposited in the aggregate from collections under
2 Section 9 of the Use Tax Act, Section 9 of the Service Use
3 Tax Act, Section 9 of the Service Occupation Tax Act, and
4 Section 3 of the Retailers' Occupation Tax Act into the
5 McCormick Place Expansion Project Fund in the specified
6 fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 and 93,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority
26 Act.
27 Beginning July 20, 1993 and in each month of each fiscal
28 year thereafter, one-eighth of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority for that fiscal year, less the amount
31 deposited into the McCormick Place Expansion Project Fund by
32 the State Treasurer in the respective month under subsection
33 (g) of Section 13 of the Metropolitan Pier and Exposition
34 Authority Act, plus cumulative deficiencies in the deposits
-529- LRB9000671KDdvA
1 required under this Section for previous months and years,
2 shall be deposited into the McCormick Place Expansion Project
3 Fund, until the full amount requested for the fiscal year,
4 but not in excess of the amount specified above as "Total
5 Deposit", has been deposited.
6 Subject to payment of amounts into the Build Illinois
7 Fund and the McCormick Place Expansion Project Fund pursuant
8 to this Article the preceding paragraphs or in any amendment
9 thereto hereafter enacted, each month the Department shall
10 pay into the Local Government Distributive Fund .4% of the
11 net revenue realized for the preceding month from the 5%
12 general rate, or .4% of 80% of the net revenue realized for
13 the preceding month from the 6.25% general rate, as the case
14 may be, on the selling price of tangible personal property
15 which amount shall, subject to appropriation, be distributed
16 as provided in Section 2 of the State Revenue Sharing Act. No
17 payments or distributions pursuant to this paragraph shall be
18 made if the tax imposed by Article 15 this Act on
19 photoprocessing products is declared unconstitutional, or if
20 the proceeds from such tax are unavailable for distribution
21 because of litigation.
22 Subject to payment of amounts into the Build Illinois
23 Fund, the McCormick Place Expansion Project Fund, and the
24 Local Government Distributive Fund pursuant to this Article
25 the preceding paragraphs or in any amendments thereto
26 hereafter enacted, beginning July 1, 1993, the Department
27 shall each month pay into the Illinois Tax Increment Fund
28 0.27% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate on the selling price of
30 tangible personal property.
31 Of the remainder of the moneys received by the Department
32 pursuant to Article 15 this Act, 75% thereof shall be paid
33 into the State Treasury and 25% shall be reserved in a
34 special account and used only for the transfer to the Common
-530- LRB9000671KDdvA
1 School Fund as part of the monthly transfer from the General
2 Revenue Fund in accordance with Section 8a of the State
3 Finance Act.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under Article 15 this Act for the second preceding
10 month; except that this transfer shall not be made for the
11 months February through June of 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to Article 15 this Act, less
14 the amount paid out during that month as refunds to taxpayers
15 for overpayment of liability.
16 Section 85-25. Payments to the Build Illinois Fund. Of
17 the remainder of the moneys received by the Department
18 pursuant to Article 10, Article 15, Article 20, or Article
19 25, as the case may be, (a) 1.75% thereof shall be paid into
20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
21 and on and after July 1, 1989, 3.8% thereof shall be paid
22 into the Build Illinois Fund; provided, however, that if in
23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24 as the case may be, of the moneys received by the Department
25 and required to be paid into the Build Illinois Fund pursuant
26 to this Code and such aggregate of 2.2% or 3.8%, as the case
27 may be, of moneys being hereinafter called the "Tax Code
28 Amount", and (2) the amount transferred to the Build Illinois
29 Fund from the State and Local Sales Tax Reform Fund shall be
30 less than the Annual Specified Amount (as hereinafter
31 defined), an amount equal to the difference shall be
32 immediately paid into the Build Illinois Fund from other
33 moneys received by the Department pursuant to this Code; the
-531- LRB9000671KDdvA
1 "Annual Specified Amount" means the amounts specified below
2 for fiscal years 1986 through 1993:
3 Fiscal Year Annual Specified Amount
4 1986 $54,800,000
5 1987 $76,650,000
6 1988 $80,480,000
7 1989 $88,510,000
8 1990 $115,330,000
9 1991 $145,470,000
10 1992 $182,730,000
11 1993 $206,520,000;
12 and means the Certified Annual Debt Service Requirement (as
13 defined in Section 13 of the Build Illinois Bond Act) or the
14 Tax Code Amount, whichever is greater, for fiscal year 1994
15 and each fiscal year thereafter; and further provided, that
16 if on the last business day of any month the sum of (1) the
17 Tax Code Amount required to be deposited into the Build
18 Illinois Bond Account in the Build Illinois Fund during such
19 month and (2) the amount transferred to the Build Illinois
20 Fund from the State and Local Sales Tax Reform Fund shall
21 have been less than 1/12 of the Annual Specified Amount, an
22 amount equal to the difference shall be immediately paid into
23 the Build Illinois Fund from other moneys received by the
24 Department pursuant to this Code; and, further provided, that
25 in no event shall the payments required under the preceding
26 proviso result in aggregate payments into the Build Illinois
27 Fund pursuant to this clause (b) for any fiscal year in
28 excess of the greater of (i) the Tax Code Amount or (ii) the
29 Annual Specified Amount for such fiscal year. The amounts
30 payable into the Build Illinois Fund under clause (b) of the
31 first sentence in this paragraph shall be payable only until
32 such time as the aggregate amount on deposit under each trust
33 indenture securing Bonds issued and outstanding pursuant to
34 the Build Illinois Bond Act is sufficient, taking into
-532- LRB9000671KDdvA
1 account any future investment income, to fully provide, in
2 accordance with such indenture, for the defeasance of or the
3 payment of the principal of, premium, if any, and interest on
4 the Bonds secured by such indenture and on any Bonds expected
5 to be issued thereafter and all fees and costs payable with
6 respect thereto, all as certified by the Director of the
7 Bureau of the Budget. If on the last business day of any
8 month in which Bonds are outstanding pursuant to the Build
9 Illinois Bond Act, the aggregate of moneys deposited in the
10 Build Illinois Bond Account in the Build Illinois Fund in
11 such month shall be less than the amount required to be
12 transferred in such month from the Build Illinois Bond
13 Account to the Build Illinois Bond Retirement and Interest
14 Fund pursuant to Section 13 of the Build Illinois Bond Act,
15 an amount equal to such deficiency shall be immediately paid
16 from other moneys received by the Department pursuant to this
17 Code to the Build Illinois Fund; provided, however, that any
18 amounts paid to the Build Illinois Fund in any fiscal year
19 pursuant to this sentence shall be deemed to constitute
20 payments pursuant to clause (b) of the first sentence of this
21 paragraph and shall reduce the amount otherwise payable for
22 such fiscal year pursuant to that clause (b). The moneys
23 received by the Department pursuant to this Code and required
24 to be deposited into the Build Illinois Fund are subject to
25 the pledge, claim and charge set forth in Section 12 of the
26 Build Illinois Bond Act.
27 Section 85-30. Payments to the McCormick Place Expansion
28 Project Fund. Subject to payment of amounts into the Build
29 Illinois Fund as provided in Sections 85-5 through 85-25, the
30 following specified monthly installment of the amount
31 requested in the certificate of the Chairman of the
32 Metropolitan Pier and Exposition Authority provided under
33 Section 8.25f of the State Finance Act, but not in excess of
-533- LRB9000671KDdvA
1 sums designated as "Total Deposit", shall be deposited in the
2 aggregate from collections under Sections 50-5 through 50-140
3 into the McCormick Place Expansion Project Fund in the
4 specified fiscal years.
5 Fiscal Year Total Deposit
6 1993 $0
7 1994 53,000,000
8 1995 58,000,000
9 1996 61,000,000
10 1997 64,000,000
11 1998 68,000,000
12 1999 71,000,000
13 2000 75,000,000
14 2001 80,000,000
15 2002 84,000,000
16 2003 89,000,000
17 2004 and 93,000,000
18 each fiscal year
19 thereafter that bonds
20 are outstanding under
21 Section 13.2 of the
22 Metropolitan Pier and
23 Exposition Authority
24 Act.
25 Beginning July 20, 1993 and in each month of each fiscal
26 year thereafter, one-eighth of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority for that fiscal year, less the amount
29 deposited into the McCormick Place Expansion Project Fund by
30 the State Treasurer in the respective month under subsection
31 (g) of Section 13 of the Metropolitan Pier and Exposition
32 Authority Act, plus cumulative deficiencies in the deposits
33 required under this Section for previous months and years,
34 shall be deposited into the McCormick Place Expansion Project
-534- LRB9000671KDdvA
1 Fund, until the full amount requested for the fiscal year,
2 but not in excess of the amount specified above as "Total
3 Deposit", has been deposited.
4 Section 50-135. Payment by manufacturers, importers, and
5 wholesalers. For greater simplicity of administration,
6 manufacturers, importers and wholesalers whose products are
7 sold at retail in Illinois by numerous retailers or
8 servicemen, and who wish to do so, may assume the
9 responsibility for accounting and paying to the Department
10 all tax accruing under this Code this Act with respect to
11 such sales, if the retailers or servicemen who are affected
12 do not make written objection to the Department to this
13 arrangement.
14 (Source: P.A. 87-1246; 87-1258; 88-45; 88-116; 88-194;
15 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670, eff.
16 12-2-94; 89-379, eff. 1-1-96; revised 8-30-95.)
17 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
18 Section 50-155. Requirement to file return.
19 (a) For purposes of the use tax, Sec. 10. except as to
20 motor vehicles and aircraft, when tangible personal property
21 is purchased from a retailer for use in this State by a
22 purchaser who did not pay the tax imposed by Article 15 to
23 this Act the retailer, and who does not file returns with the
24 Department as a retailer under Sections 50-5 through 50-140
25 Section 9 of this Code Act, such purchaser (by the last day
26 of the month following the calendar month in which such
27 purchaser makes any payment upon the selling price of such
28 property) shall, except as provided in this Section, file a
29 return with the Department and pay the tax upon that portion
30 of the selling price so paid by the purchaser during the
31 preceding calendar month. When tangible personal property is
32 purchased by a lessor, under a lease for one year or longer,
-535- LRB9000671KDdvA
1 executed or in effect at the time of purchase to an
2 interstate carrier for hire, who did not pay the tax imposed
3 by this Article 15 Act to the retailer, such lessor (by the
4 last day of the month following the calendar month in which
5 such property reverts to the use of such lessor) shall file a
6 return with the Department and pay the tax upon the fair
7 market value of such property on the date of such reversion.
8 Such return shall be filed on a form prescribed by the
9 Department and shall contain such information as the
10 Department may reasonably require. Such return and payment
11 from the purchaser shall be submitted to the Department
12 sooner than the last day of the month after the month in
13 which the purchase is made to the extent that that may be
14 necessary in order to secure the title to a motor vehicle or
15 the certificate of registration for an aircraft. However, if
16 the purchaser's annual use tax liability does not exceed
17 $600, the purchaser may file the return on an annual basis on
18 or before April 15th of the year following the year use tax
19 liability was incurred.
20 In addition with respect to motor vehicles and aircraft,
21 a purchaser of such tangible personal property for use in
22 this State, who purchases such tangible personal property
23 from an out-of-state retailer, shall file with the
24 Department, upon a form to be prescribed and supplied by the
25 Department, a return for each such item of tangible personal
26 property purchased. Such return in the case of motor
27 vehicles and aircraft must show the name and address of the
28 seller, the name and , address of purchaser, the amount of
29 the selling price including the amount allowed by the
30 retailer for traded in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 5-120 2 of this Code
33 Act allows an exemption for the value of traded-in property;
34 the balance payable after deducting such trade-in allowance
-536- LRB9000671KDdvA
1 from the total selling price; the amount of tax due from the
2 purchaser with respect to such transaction; the amount of tax
3 collected from the purchaser by the retailer on such
4 transaction (or satisfactory evidence that such tax is not
5 due in that particular instance if that is claimed to be the
6 fact); the place and date of the sale, a sufficient
7 identification of the property sold, and such other
8 information as the Department may reasonably require.
9 Such return shall be filed not later than 30 days after
10 such motor vehicle or aircraft is brought into this State for
11 use.
12 The return and tax remittance or proof of exemption from
13 the tax that is imposed by Article 15 this Act may be
14 transmitted to the Department by way of the State agency with
15 which, or State officer with whom, the tangible personal
16 property must be titled or registered (if titling or
17 registration is required) if the Department and such agency
18 or State officer determine that this procedure will expedite
19 the processing of applications for title or registration.
20 With each such return, the purchaser shall remit the
21 proper amount of tax due (or shall submit satisfactory
22 evidence that the sale is not taxable if that is the case),
23 to the Department or its agents, whereupon the Department
24 shall issue, in the purchaser's name, a tax receipt (or a
25 certificate of exemption if the Department is satisfied that
26 the particular sale is tax exempt) which such purchaser may
27 submit to the agency with which, or State officer with whom,
28 he must title or register the tangible personal property that
29 is involved (if titling or registration is required) in
30 support of such purchaser's application for an Illinois
31 certificate or other evidence of title or registration to
32 such tangible personal property.
33 (b) For purposes of the service use tax, where property
34 is acquired as an incident to the purchase of a service from
-537- LRB9000671KDdvA
1 a serviceman for use in this State by a purchaser who did not
2 pay the tax herein imposed to the serviceman, and who does
3 not file returns with the Department as a serviceman under
4 Sections 50-5 through 50-140 of this Code, such purchaser (by
5 the last day of the month following the calendar month in
6 which such purchaser makes any payment upon the selling price
7 of such property) shall, except as hereinafter provided in
8 this Section, file a return with the Department and pay the
9 tax upon that portion of the selling price so paid by the
10 purchaser during the preceding calendar month. Such return
11 shall be filed on a form prescribed by the Department and
12 shall contain such information as the Department may
13 reasonably require.
14 (c) For purposes of the use tax and the service use tax,
15 when a purchaser pays a tax imposed by Article 15 or 25 this
16 Act directly to the Department, the Department (upon request
17 therefor from such purchaser) shall issue an appropriate
18 receipt to such purchaser showing that he has paid such tax
19 to the Department. Such receipt shall be sufficient to
20 relieve the purchaser from further liability for the tax to
21 which such receipt may refer.
22 (d) For purposes of the use tax and the service use tax,
23 a user who is liable to pay use tax or service use tax
24 directly to the Department only occasionally and not on a
25 frequently recurring basis, and who is not required to file
26 returns with the Department as a retailer or serviceman under
27 Sections 50-5 through 50-140 of this Code Section 9 of this
28 Act, or under the "Retailers' Occupation Tax Act", or as a
29 registrant with the Department under the "Service Occupation
30 Tax Act" or the "Service Use Tax Act", need not register with
31 the Department. However, if such a user has a frequently
32 recurring direct use tax or service use tax liability to pay
33 to the Department, such user shall be required to register
34 with the Department on forms prescribed by the Department and
-538- LRB9000671KDdvA
1 to obtain and display a certificate of registration from the
2 Department. In that event, all of the provisions of Sections
3 50-5 through 50-140 Section 9 of this Code Act concerning the
4 filing of regular monthly, quarterly or annual tax returns
5 and all of the provisions of Sections 35-5 through 35-45
6 Section 2a of the "Retailers' Occupation Tax Act" concerning
7 the requirements for registrants to post bond or other
8 security with the Department, as the provisions of such
9 sections now exist or may hereafter be amended, shall apply
10 to such users to the same extent as if such provisions were
11 included herein.
12 (Source: P.A. 87-876.)
13 (35 ILCS 105/10a) (from Ch. 120, par. 439.10a)
14 Section 35-70. Exemption from bonding. Sec. 10a.
15 Notwithstanding any other provision to the contrary, any
16 person who is required to file a bond pursuant to any
17 provision of this Code Act and who has continuously complied
18 with all provisions of this Code Act for 24 or more
19 consecutive months, shall no longer be required to comply
20 with the bonding provisions of this Code Act so long as such
21 person continues his compliance with the provisions of this
22 Code Act.
23 (Source: P.A. 84-1408.)
24 (35 ILCS 105/11) (from Ch. 120, par. 439.11)
25 Section 45-15. Records; use tax; service occupation tax;
26 service use tax. For purposes of the use tax, the service
27 occupation tax, and the service use tax, Sec. 11. every
28 retailer, supplier, or serviceman required or authorized to
29 collect taxes hereunder and every person subject to the taxes
30 imposed by Article 15, Article 20, or Article 25 using in
31 this State tangible personal property purchased at retail
32 from a retailer on or after the effective date hereof shall
-539- LRB9000671KDdvA
1 keep such records, receipts, invoices and other pertinent
2 books, documents, memoranda and papers as the Department
3 shall require, in such form as the Department shall require.
4 The Department may adopt rules that establish requirements,
5 including record forms and formats, for records required to
6 be kept and maintained by taxpayers. For purposes of this
7 Section, "records" means all data maintained by the taxpayer,
8 including data on paper, microfilm, microfiche or any type of
9 machine-sensible data compilation. For the purpose of
10 administering and enforcing the provisions hereof, the
11 Department, or any officer or employee of the Department
12 designated, in writing, by the Director thereof, may hold
13 investigations and hearings concerning any matters covered
14 herein and may examine any books, papers, records, documents
15 or memoranda of (i) any retailer or purchaser bearing upon
16 the sales or purchases of tangible personal property, the
17 privilege of using which is taxed under Article 15, (ii) any
18 supplier or serviceman bearing upon the sales of services or
19 the sales of tangible personal property to servicemen, or
20 (iii) any serviceman or any taxable purchaser for use for
21 purposes of Article 25 hereunder, and may require the
22 attendance of such person or any officer or employee of such
23 person, or of any person having knowledge of the facts, and
24 may take testimony and require proof for its information.
25 (Source: P.A. 88-480.)
26 (35 ILCS 105/12) (from Ch. 120, par. 439.12)
27 Section 90-40. Sec. 12. Applicability of the Retailers'
28 Occupation Tax Act and Uniform Penalty and Interest Act. All
29 of the provisions of Sections 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n,
30 2a, 2b, 2c, 3, 4 (except that the time limitation provisions
31 shall run from the date when the tax is due rather than from
32 the date when gross receipts are received), 5 (except that
33 the time limitation provisions on the issuance of notices of
-540- LRB9000671KDdvA
1 tax liability shall run from the date when the tax is due
2 rather than from the date when gross receipts are received
3 and except that in the case of a failure to file a return
4 required by this Act, no notice of tax liability shall be
5 issued on and after each July 1 and January 1 covering tax
6 due with that return during any month or period more than 6
7 years before that July 1 or January 1, respectively), 5a, 5b,
8 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of
9 the Retailers' Occupation Tax Act and Section 3-7 of the
10 Uniform Penalty and Interest Act, which are not inconsistent
11 with this Code Act, shall apply, as far as practicable, to
12 the subject matter of this Code Act to the same extent as if
13 such provisions were included herein.
14 (Source: P.A. 87-205; 87-895; 88-660, eff. 9-16-94.)
15 (35 ILCS 105/12a) (from Ch. 120, par. 439.12a)
16 Section 90-5. Appointment of Secretary of State for
17 service of process. Sec. 12a. Any non-resident of this State
18 who accepts the privilege extended by the laws of this State
19 to non-residents of acting as a retailer maintaining a place
20 of business within in this State within the meaning of
21 Section 5-110 or as a serviceman maintaining a place of
22 business in this State within the meaning of Section 5-130 2
23 of this Act, and any resident of this State who incurs tax
24 liability under Article 15 this Act as a seller or Article 25
25 as a serviceman and who subsequently removes from this State
26 or conceals his whereabouts, and any person (resident or
27 non-resident) who incurs tax liability under Article 10 as a
28 retailer, under Article 15 or Article 25 this Act as a user
29 in this State, or under Article 20 as a serviceman in this
30 State, and who removes from this State or conceals his
31 whereabouts, shall be deemed thereby to appoint the Secretary
32 of State of Illinois his agent for the service of process or
33 notice in any judicial or administrative proceeding under
-541- LRB9000671KDdvA
1 this Code Act. Such process or notice shall be served by the
2 Department on the Secretary of State by leaving, at the
3 office of the Secretary of State at least 15 days before the
4 return day of such process or notice, a true and certified
5 copy thereof, and by sending to the taxpayer by registered or
6 certified mail, postage prepaid, a like and true certified
7 copy, with an endorsement thereon of the service upon said
8 Secretary of State, addressed to such taxpayer at his last
9 known address.
10 Service of process or notice in the manner provided for
11 in this Section, under the circumstances specified in this
12 Section, shall be of the same force and validity as if served
13 upon the taxpayer personally within this State. Proof of such
14 service upon the taxpayer in this State through the Secretary
15 of State as his agent and by mailing to the last known
16 address of the taxpayer may be made in such judicial or
17 administrative proceeding by the affidavit of the Director of
18 Revenue, or by his duly authorized representative who made
19 such service, with a copy of the process or notice that was
20 so served attached to such affidavit.
21 (Source: Laws 1961, p. 1945.)
22 (35 ILCS 105/12b) (from Ch. 120, par. 439.12b)
23 Section 75-5. Application of the Administrative
24 Procedure Act. Sec. 12b. The Illinois Administrative
25 Procedure Act is hereby expressly adopted and shall apply to
26 all administrative rules and procedures of the Department of
27 Revenue under this Code Act, except that (1) paragraph (b) of
28 Section 5-10 of the Illinois Administrative Procedure Act
29 does not apply to final orders, decisions and opinions of the
30 Department, (2) subparagraph (a)(2) (a)2 of Section 5-10 of
31 the Illinois Administrative Procedure Act does not apply to
32 forms established by the Department for use under this Code
33 Act, and (3) the provisions of Section 10-45 of the Illinois
-542- LRB9000671KDdvA
1 Administrative Procedure Act regarding proposals for decision
2 are excluded and not applicable to the Department under this
3 Code Act.
4 (Source: P.A. 88-45.)
5 (35 ILCS 105/13) (from Ch. 120, par. 439.13)
6 Section 60-15. Foreign retailers; revocation of permit
7 to collect tax. For purposes of the use tax and service use
8 tax, Sec. 13. whenever any retailer or serviceman not
9 maintaining a place of business in this State, to whom a
10 permit to collect the taxes tax hereby imposed by Article 15
11 and Article 25 has been issued pursuant to Section 60-10 6
12 hereof, fails to comply with any of the provisions hereof or
13 any orders, rules or regulations of the Department prescribed
14 and adopted hereunder, or when the Department considers the
15 security furnished by such retailer or serviceman to be
16 inadequate or considers that the tax can be collected more
17 effectively from persons using such property in this State,
18 the Department may, upon notice and hearing as herein
19 provided, by order revoke the permit issued to such retailer
20 or serviceman. No order authorized by this Section shall be
21 made until the retailer or serviceman is given an opportunity
22 to be heard and to show cause why such order shall not be
23 made, and he shall be given at least 7 days' notice of the
24 time, place and purpose of such hearing. The Department shall
25 have the power in its discretion to issue a new permit
26 pursuant to Section 60-10 6 hereof after such revocation.
27 (Source: Laws 1955, p. 2027.)
28 (35 ILCS 105/14) (from Ch. 120, par. 439.14)
29 Section 80-10. Violations under the use tax, the service
30 occupation tax, and the service use tax.
31 (a) This Section applies to the use tax, the service
32 occupation tax, and the service use tax. Sec. 14. When the
-543- LRB9000671KDdvA
1 amount due is under $300, any person subject to the
2 provisions hereof who fails to file a return, or who violates
3 any other provision of Sections 50-5 through 50-140 Section 9
4 or Section 50-155 10 hereof, or who fails to keep books and
5 records as required herein, or who files a fraudulent return,
6 or who wilfully violates any rule or regulation of the
7 Department for the administration and enforcement of the
8 provisions hereof, or any officer or agent of a corporation
9 or manager, member, or agent of a limited liability company
10 subject hereto who signs a fraudulent return filed on behalf
11 of such corporation or limited liability company, or any
12 accountant or other agent who knowingly enters false
13 information on the return of any taxpayer under Articles 15,
14 20, or 25 this Act, or any person who violates any of the
15 provisions of Sections 15-5, 20-5, 25-5, 60-20, or 80-20 3, 5
16 or 7 hereof, or any purchaser who obtains a registration
17 number or resale number from the Department through
18 misrepresentation, or who represents to a seller that such
19 purchaser has a registration number or a resale number from
20 the Department when he knows that he does not, or who uses
21 his registration number or resale number to make a seller
22 believe that he is buying tangible personal property for
23 resale when such purchaser in fact knows that this is not the
24 case, is guilty of a Class 4 felony.
25 Any person who violates any provision of Sections 35-5
26 through 35-45 Section 6 hereof, or who engages in the
27 business of (i) selling tangible personal property at retail
28 or (ii) making sales of service after his certificate of
29 registration under this Act has been revoked in accordance
30 with Section 90-40 12 of this Act, is guilty of a Class 4
31 felony. Each day any such person is engaged in business in
32 violation of Sections 35-5 through 35-45 Section 6, or after
33 his certificate of registration under this Act has been
34 revoked, constitutes a separate offense.
-544- LRB9000671KDdvA
1 When the amount due is under $300, any person who accepts
2 money that is due to the Department under Articles 15, 20, or
3 25 this Act from a taxpayer for the purpose of acting as the
4 taxpayer's agent to make the payment to the Department, but
5 who fails to remit such payment to the Department when due is
6 guilty of a Class 4 felony. Any such person who purports to
7 make such payment by issuing or delivering a check or other
8 order upon a real or fictitious depository for the payment of
9 money, knowing that it will not be paid by the depository,
10 shall be guilty of a deceptive practice in violation of
11 Section 17-1 of the Criminal Code of 1961, as amended.
12 When the amount due is $300 or more, any person subject
13 to the provisions hereof who fails to file a return or who
14 violates any other provision of Sections 50-5 through 50-140
15 Section 9 or Section 50-155 10 hereof or who fails to keep
16 books and records as required herein or who files a
17 fraudulent return, or who wilfully violates any rule or
18 regulation of the Department for the administration and
19 enforcement of the provisions hereof, or any officer or agent
20 of a corporation or manager, member, or agent of a limited
21 liability company subject hereto who signs a fraudulent
22 return filed on behalf of such corporation or limited
23 liability company, or any accountant or other agent who
24 knowingly enters false information on the return of any
25 taxpayer under Articles 15, 20, or 25 this Act or any person
26 who violates any of the provisions of Sections 15-5, 20-5,
27 25-5, 60-20, or 80-20 3, 5 or 7 hereof or any purchaser who
28 obtains a registration number or resale number from the
29 Department through misrepresentation, or who represents to a
30 seller that such purchaser has a registration number or a
31 resale number from the Department when he knows that he does
32 not or who uses his registration number or resale number to
33 make a seller believe that he is buying tangible personal
34 property for resale when such purchaser in fact knows that
-545- LRB9000671KDdvA
1 this is not the case, is guilty of a Class 3 felony.
2 When the amount due is $300 or more, any person who
3 accepts money that is due to the Department under Articles
4 15, 20, or 25 this Act from a taxpayer for the purpose of
5 acting as the taxpayer's agent to make the payment to the
6 Department, but who fails to remit such payment to the
7 Department when due is guilty of a Class 3 felony. Any such
8 person who purports to make such payment by issuing or
9 delivering a check or other order upon a real or fictitious
10 depository for the payment of money, knowing that it will not
11 be paid by the depository shall be guilty of a deceptive
12 practice in violation of Section 17-1 of the Criminal Code of
13 1961, as amended.
14 Any seller or serviceman who collects or attempts to
15 collect use tax, service occupation tax, or service use tax
16 measured by receipts or selling prices which such seller or
17 serviceman knows are not subject to use tax, service
18 occupation tax, or service use tax, or any serviceman who
19 collects or attempts to collect an amount (however
20 designated) which purports to reimburse such serviceman for
21 service occupation tax liability measured by receipts or
22 selling prices which such serviceman knows are not subject to
23 service occupation tax liability, or any seller or serviceman
24 who knowingly over-collects or attempts to over-collect use
25 tax, service occupation tax, or service use tax or an amount
26 purporting to be reimbursement for service occupation tax
27 liability in a transaction which is subject to the taxes tax
28 that are is imposed by Articles 15, 20, or 25 this Act, shall
29 be guilty of a Class 4 felony for each such offense. This
30 paragraph does not apply to an amount collected (i) by the
31 seller or serviceman as use tax or service use tax on
32 receipts or selling prices or (ii) by the serviceman as
33 reimbursement for the serviceman's service occupation tax
34 liability on receipts or selling prices which are subject to
-546- LRB9000671KDdvA
1 tax under Articles 15, 20, or 25 this Act as long as such
2 collection is made in compliance with the tax collection
3 brackets prescribed by the Department in its rules and
4 regulations.
5 Any taxpayer or agent of a taxpayer who with the intent
6 to defraud purports to make a payment due to the Department
7 by issuing or delivering a check or other order upon a real
8 or fictitious depository for the payment of money, knowing
9 that it will not be paid by the depository, shall be guilty
10 of a deceptive practice in violation of Section 17-1 of the
11 Criminal Code of 1961, as amended.
12 A prosecution for any act in violation of this Section
13 may be commenced at any time within 3 years of the commission
14 of that act.
15 This Section does not apply if the violation in a
16 particular case also constitutes a criminal violation of
17 Section 80-5 the Retailers' Occupation Tax Act.
18 (b) For purposes of the use tax and the service use tax,
19 any taxpayer or agent of a taxpayer who with the intent to
20 defraud purports to make a payment due to the Department by
21 issuing or delivering a check or other order upon a real or
22 fictitious depository for the payment of money, knowing that
23 it will not be paid by the depository, shall be guilty of a
24 deceptive practice in violation of Section 17-1 of the
25 Criminal Code of 1961.
26 (c) For purposes of the service occupation tax, if the
27 violation in a particular case also constitutes a criminal
28 violation of the provisions applying to the use tax then this
29 Section shall not apply to the violation of the provisions
30 applying to the service occupation tax.
31 (d) For purposes of the service use tax, if the
32 violation in a particular case also constitutes a criminal
33 violation of the provisions applying to the use tax or the
34 provisions applying to the service occupation tax then this
-547- LRB9000671KDdvA
1 Section shall not apply to the violation of the provisions
2 applying to the service use tax.
3 (Source: P.A. 88-480.)
4 (35 ILCS 105/15) (from Ch. 120, par. 439.15)
5 Section 15-10. Tax additional. Sec. 15. The tax herein
6 imposed in this Article shall be in addition to all other
7 occupation or privilege taxes imposed by the State of
8 Illinois or by any municipal corporation or political
9 subdivision thereof.
10 Any taxpayer or agent of a taxpayer who with the intent
11 to defraud purports to make a payment due to the Department
12 by issuing or delivering a check or other order upon a real
13 or fictitious depository for the payment of money, knowing
14 that it will not be paid by the depository, shall be guilty
15 of a deceptive practice in violation of Section 17-1 of the
16 Criminal Code of 1961, as amended.
17 (Source: P.A. 84-221.)
18 (35 ILCS 105/18) (from Ch. 120, par. 439.18)
19 Section 90-35. Severability. Sec. 18. If any clause,
20 sentence, Section, provision or part of this Code Act or the
21 application thereof to any person or circumstance shall be
22 adjudged to be unconstitutional, the remainder of this Code
23 Act or its application to persons or circumstances other than
24 those to which it is held invalid, shall not be affected
25 thereby. In particular, if any provision which exempts or has
26 the effect of exempting some class of users or servicemen or
27 some kind of use or service from the taxes tax imposed by
28 this Code Act should be held to constitute or to result in an
29 invalid classification or to be unconstitutional for some
30 other reason, such provision shall be deemed to be severable,
31 with the remainder of this Code Act without said provision
32 being held constitutional.
-548- LRB9000671KDdvA
1 (Source: Laws 1955, p. 2027.)
2 (35 ILCS 105/19) (from Ch. 120, par. 439.19)
3 Section 55-10. Erroneous payment; credit or refund; use
4 tax; service occupation tax; service use tax.
5 (a) For purposes of the use tax, the service occupation
6 tax, and the service use tax, Sec. 19. if it shall appear
7 that an amount of tax or penalty or interest has been paid in
8 error under Article 15, Article 20, or Article 25 hereunder
9 to the Department by (i) a purchaser, as distinguished from
10 the retailer, (ii) a serviceman, or (iii) a purchaser, as
11 distinguished from the serviceman, whether such amount be
12 paid through a mistake of fact or an error of law, such
13 purchaser or serviceman may file a claim for credit or refund
14 with the Department. If it shall appear that an amount of tax
15 or penalty or interest has been paid in error to the
16 Department under Article 15, Article 20, or Article 25
17 hereunder by (i) a retailer who is required or authorized to
18 collect and remit the use tax imposed by Article 15, (ii) a
19 supplier who is required or authorized to collect and remit
20 the tax imposed by Article 20, or (iii) a serviceman who is
21 required or authorized to collect the tax imposed by Article
22 25, whether such amount be paid through a mistake of fact or
23 an error of law, such retailer, supplier, or serviceman may
24 file a claim for credit or refund with the Department,
25 provided that no credit or refund shall be allowed for any
26 amount paid by any such retailer, supplier, or serviceman
27 unless it shall appear that he bore the burden of such amount
28 and did not shift the burden thereof to anyone else (as in
29 the case of a duplicated tax payment which the retailer,
30 supplier, or serviceman made to the Department and did not
31 collect from anyone else), or unless it shall appear that he
32 or she or his or her legal representative has unconditionally
33 repaid such amount to his vendee (1) who bore the burden
-549- LRB9000671KDdvA
1 thereof and has not shifted such burden directly or
2 indirectly in any manner whatsoever; (2) who, if he has
3 shifted such burden, has repaid unconditionally such amount
4 to his or her own vendee;, and (3) who is not entitled to
5 receive any reimbursement therefor from any other source than
6 from his vendor, nor to be relieved of such burden in any
7 other manner whatsoever.
8 (b) For purposes of the use tax and the service use tax,
9 if it shall appear that an amount of tax has been paid in
10 error under Article 15 or Article 25 hereunder by (i) the
11 purchaser to a retailer or (ii) the purchaser to a
12 serviceman, who retained such tax as reimbursement for his or
13 her tax liability on the same sale under Article 10, in the
14 case of a retailer, or Article 20, in the case of a
15 serviceman the Retailers' Occupation Tax Act, and who
16 remitted the amount involved to the Department under Article
17 10 or Article 20 the Retailers' Occupation Tax Act, whether
18 such amount be paid through a mistake of fact or an error of
19 law, the procedure for recovering such tax shall be as that
20 prescribed in this Article 55 Sections 6, 6a, 6b and 6c of
21 the Retailers' Occupation Tax Act.
22 Any credit or refund that is allowed under this Section
23 shall bear interest at the rate and in the manner specified
24 in the Uniform Penalty and Interest Act.
25 Any claim filed hereunder shall be filed upon a form
26 prescribed and furnished by the Department. The claim shall
27 be signed by the claimant (or by the claimant's legal
28 representative if the claimant shall have died or become a
29 person under legal disability), or by a duly authorized agent
30 of the claimant or his or her legal representative.
31 A claim for credit or refund shall be considered to have
32 been filed with the Department on the date upon which it is
33 received by the Department. Upon receipt of any claim for
34 credit or refund filed under this Act, any officer or
-550- LRB9000671KDdvA
1 employee of the Department, authorized in writing by the
2 Director of Revenue to acknowledge receipt of such claims on
3 behalf of the Department, shall execute on behalf of the
4 Department, and shall deliver or mail to the claimant or his
5 duly authorized agent, a written receipt, acknowledging that
6 the claim has been filed with the Department, describing the
7 claim in sufficient detail to identify it and stating the
8 date upon which the claim was received by the Department.
9 Such written receipt shall be prima facie evidence that the
10 Department received the claim described in such receipt and
11 shall be prima facie evidence of the date when such claim was
12 received by the Department. In the absence of such a written
13 receipt, the records of the Department as to when the claim
14 was received by the Department, or as to whether or not the
15 claim was received at all by the Department, shall be deemed
16 to be prima facie correct upon these questions in the event
17 of any dispute between the claimant (or his or her legal
18 representative) and the Department concerning these
19 questions.
20 In case the Department determines that the claimant is
21 entitled to a refund, such refund shall be made only from
22 such appropriation as may be available for that purpose. If
23 it appears unlikely that the amount appropriated would permit
24 everyone having a claim allowed during the period covered by
25 such appropriation to elect to receive a cash refund, the
26 Department, by rule or regulation, shall provide for the
27 payment of refunds in hardship cases and shall define what
28 types of cases qualify as hardship cases.
29 (c) For purposes of the use tax, if a retailer who has
30 failed to pay use tax on gross receipts from retail sales is
31 required by the Department to pay such tax, such retailer,
32 without filing any formal claim with the Department, shall be
33 allowed to take credit against such use tax liability to the
34 extent, if any, to which such retailer has paid an amount
-551- LRB9000671KDdvA
1 equivalent to retailers' occupation tax or has paid use tax
2 in error to his or her vendor or vendors of the same tangible
3 personal property which such retailer bought for resale and
4 did not first use before selling it, and no penalty or
5 interest shall be charged to such retailer on the amount of
6 such credit. However, when such credit is allowed to the
7 retailer by the Department, the vendor is precluded from
8 refunding any of that tax to the retailer and filing a claim
9 for credit or refund with respect thereto with the
10 Department. The provisions of this amendatory Act shall be
11 applied retroactively, regardless of the date of the
12 transaction.
13 (Source: P.A. 87-205.)
14 (35 ILCS 105/20) (from Ch. 120, par. 439.20)
15 Section 55-25. Determination of claim; hearing.
16 (a) Sec. 20. As soon as practicable after a claim for
17 credit or refund is filed, the Department shall examine the
18 same and determine the amount of credit or refund to which
19 the claimant or the claimant's legal representative, in the
20 event that the claimant shall have died or become a person
21 under legal disability, is entitled and shall, by its Notice
22 of Tentative Determination of Claim, notify the claimant or
23 his or her legal representative of such determination, which
24 determination shall be prima facie correct. Proof of such
25 determination by the Department may be made at any hearing
26 before the Department or in any legal proceeding by a
27 reproduced copy of the Department's record relating thereto,
28 in the name of the Department under the certificate of the
29 Director of Revenue. Such reproduced copy shall, without
30 further proof, be admitted into evidence before the
31 Department or in any legal proceeding and shall be prima
32 facie proof of the correctness of the Department's
33 determination, as shown therein. If such claimant, or the
-552- LRB9000671KDdvA
1 legal representative of a deceased claimant or a claimant who
2 is a person under legal disability shall, for purposes of the
3 use tax, the service occupation tax, and the service use tax,
4 within 20 days after the Department's Notice of Tentative
5 Determination of Claim, or for purposes of the retailers'
6 occupation tax, within 60 days after the Department's Notice
7 of Tentative Determination of Claim, file a protest thereto
8 and request a hearing thereon, the Department shall give
9 notice to such claimant, or the legal representative of a
10 deceased claimant, or a claimant who is a person under legal
11 disability of the time and place fixed for such hearing, and
12 shall hold a hearing in conformity with the provisions of
13 this Code Act, and pursuant thereto shall issue its Final
14 Determination of the amount, if any, found to be due as a
15 result of such hearing, to such claimant, or the legal
16 representative of a deceased claimant or a claimant who is a
17 person under legal disability.
18 (b) For purposes of the retailers' occupation tax only,
19 the Department's Final Determination may be reviewed by the
20 proper Circuit Court, in the same manner, within the same
21 time, upon the same terms and conditions and to the same
22 extent, as provided by Section 77-5 of this Code.
23 Section 55-30. Final determination of claim. If a
24 protest to the Department's Notice of Tentative Determination
25 of Claim is not filed within 20 days and a request for a
26 hearing thereon is not made as provided in Section 55-25
27 herein, the said Notice shall thereupon become and operate as
28 a Final Determination; and, if the Department's Notice of
29 Tentative Determination, upon becoming a Final Determination,
30 indicates no amount due to the claimant, or, upon issuance of
31 a credit memorandum or refund for the amount, if any, found
32 by the Department to be due, the claim in all its aspects
33 shall be closed and no longer open to protest, hearing,
-553- LRB9000671KDdvA
1 judicial review, or by any other proceeding or action
2 whatever, either before the Department or in any court of
3 this State. Claims for credit or refund hereunder must be
4 filed with and initially determined by the Department, the
5 remedy herein provided being exclusive; and no court shall
6 have jurisdiction to determine the merits of any claim except
7 upon review as provided in this Code Act.
8 (Source: P.A. 83-706.)
9 (35 ILCS 105/21) (from Ch. 120, par. 439.21)
10 Section 55-35. Limitations. Sec. 21. As to any claim
11 for credit or refund filed with the Department on and after
12 January 1 but on or before June 30 of any given year, no
13 amount of tax or penalty or interest erroneously paid (either
14 in total or partial liquidation of a tax or penalty or
15 interest under this Code Act) more than 3 years prior to such
16 January 1 shall be credited or refunded, and as to any such
17 claim filed on and after July 1 but on or before December 31
18 of any given year, no amount of tax or penalty or interest
19 erroneously paid (either in total or partial liquidation of a
20 tax or penalty or interest under this Code Act) more than 3
21 years prior to such July 1 shall be credited or refunded
22 except that, for purposes of the retailers' occupation tax,
23 if both the Department and the taxpayer have agreed to an
24 extension of time to issue a notice of tax liability as
25 provided in Section 50-145 of this Code, such claim may be
26 filed at any time prior to the expiration of the period
27 agreed upon. No claim shall be allowed for any amount paid to
28 the Department, whether paid voluntarily or involuntarily, if
29 paid in total or partial liquidation of an assessment which
30 had become final before the claim for credit or refund to
31 recover the amount so paid is filed with the Department, or
32 if paid in total or partial liquidation of a judgment or
33 order of court.
-554- LRB9000671KDdvA
1 (Source: P.A. 79-1366; 79-1365.)
2 (35 ILCS 105/22) (from Ch. 120, par. 439.22)
3 Section 55-40. Application of credit or refund against
4 tax. For purposes of the use tax, the service occupation
5 tax, and the service use tax, Sec. 22. if it is determined
6 that the Department should issue a credit or refund under
7 this Code Act, the Department may first apply the amount
8 thereof against any amount of tax or penalty or interest due
9 under this Code hereunder, or under the "Retailers'
10 Occupation Tax Act", the "Service Occupation Tax Act", the
11 "Service Use Tax Act", the the "Municipal Retailers'
12 Occupation Tax Act", the the "Municipal Use Tax Act", the the
13 "Municipal Service Occupation Tax Act", the the "County
14 Retailers' Occupation Tax Act", the the "County Supplementary
15 Retailers' Occupation Tax Act", the the "County Service
16 Occupation Tax Act", the the "County Supplementary Service
17 Occupation Tax Act", the the "County Use Tax Act", the the
18 "County Supplementary Use Tax Act", Section 4 of the the
19 "Water Commission Act of 1985", subsections (b), (c) and (d)
20 of Section 5.01 of the the "Local Mass Transit District Act",
21 or subsections (e), (f) and (g) of Section 4.03 of the the
22 "Regional Transportation Authority Act", from the person
23 entitled to such credit or refund. For this purpose, if
24 proceedings are pending to determine whether or not any tax
25 or penalty or interest is due under this Code Act or under
26 the "Retailers' Occupation Tax Act", the "Service Occupation
27 Tax Act", the "Service Use Tax Act", the the "Municipal
28 Retailers' Occupation Tax Act", the the "Municipal Use Tax
29 Act", the the "Municipal Service Occupation Tax Act", the the
30 "County Retailers' Occupation Tax Act", the the "County
31 Supplementary Retailers' Occupation Tax Act", the the "County
32 Service Occupation Tax Act", the the "County Supplementary
33 Service Occupation Tax Act", the the "County Use Tax Act",
-555- LRB9000671KDdvA
1 the the "County Supplementary Use Tax Act", Section 4 of the
2 the "Water Commission Act of 1985", subsections (b), (c) and
3 (d) of Section 5.01 of the the "Local Mass Transit District
4 Act", or subsections (e), (f) and (g) of Section 4.03 of the
5 the "Regional Transportation Authority Act", from such
6 person, the Department may withhold issuance of the credit or
7 refund pending the final disposition of such proceedings and
8 may apply such credit or refund against any amount found to
9 be due to the Department as a result of such proceedings. The
10 balance, if any, of the credit or refund shall be issued to
11 the person entitled thereto.
12 Any credit memorandum issued hereunder may be used by the
13 authorized holder thereof to pay any tax or penalty or
14 interest due or to become due under this Code or under the
15 Act or under the "Retailers' Occupation Tax Act", the
16 "Service Occupation Tax Act", the "Service Use Tax Act", the
17 "Municipal Retailers' Occupation Tax Act", the the "Municipal
18 Use Tax Act", the the "Municipal Service Occupation Tax Act",
19 the the "County Retailers' Occupation Tax Act", the the
20 "County Supplementary Retailers' Occupation Tax Act", the the
21 "County Service Occupation Tax Act", the the "County
22 Supplementary Service Occupation Tax Act", the the "County
23 Use Tax Act", the the "County Supplementary Use Tax Act",
24 Section 4 of the the "Water Commission Act of 1985",
25 subsections (b), (c) and (d) of Section 5.01 of the the
26 "Local Mass Transit District Act", or subsections (e), (f)
27 and (g) of Section 4.03 of the the "Regional Transportation
28 Authority Act", from such holder. Subject to reasonable rules
29 of the Department, a credit memorandum issued hereunder may
30 be assigned by the holder thereof to any other person for use
31 in paying tax or penalty or interest which may be due or
32 become due under this Code or, for purposes of the service
33 occupation tax and the service use tax, due under the
34 Municipal Retailers' Occupation Tax Act, the Municipal Use
-556- LRB9000671KDdvA
1 Tax Act, the Municipal Service Occupation Tax Act, the County
2 Retailers' Occupation Tax Act, the County Supplementary
3 Retailers' Occupation Tax Act, the County Service Occupation
4 Tax Act, the County Supplementary Service Occupation Tax Act,
5 the County Use Tax Act, the County Supplementary Use Tax Act,
6 Section 4 of the Water Commission Act of 1985, subsections
7 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
8 District Act, or subsections (e), (f) and (g) of Section 4.03
9 of the Regional Transportation Authority Act Act or under the
10 "Retailers' Occupation Tax Act", the "Service Occupation Tax
11 Act" or the "Service Use Tax Act", from the assignee.
12 (b) For purposes of this Code, in any case in which
13 there has been an erroneous refund of tax payable under this
14 Code Act, a notice of tax liability may be issued at any time
15 within 3 years from the making of that refund, or within 5
16 years from the making of that refund if it appears that any
17 part of the refund was induced by fraud or the
18 misrepresentation of a material fact. The amount of any
19 proposed assessment set forth in the notice shall be limited
20 to the amount of the erroneous refund.
21 (Source: P.A. 87-876.)
22 Section 1-5. Applicability. Unless otherwise specified
23 in this Code, the provisions of each Section or subsection of
24 this Code apply to all of the taxes imposed under Articles
25 10, 15, 20, and 25. For example, if a Section or subsection
26 begins with the phrase "for purposes of the retailers'
27 occupation tax and use tax", the provisions of that Section
28 or subsection apply only to the retailers' occupation tax
29 imposed in Article 10 and the use tax imposed in Article 15.
30 Those provisions would not apply to the service occupation
31 tax imposed in Article 20 or the service use tax imposed in
32 Article 25. If no language in a Section or subsection of
33 this Code specifically limits its application, then the
-557- LRB9000671KDdvA
1 provisions of that Section or subsection apply to the
2 retailers' occupation tax imposed in Article 10, the use tax
3 imposed in Article 15, the service occupation tax imposed in
4 Article 20, and the service use tax imposed in Article 25.
5 (b) This Code, as enacted, is not intended to make any
6 substantive changes in the meaning, effect, or application of
7 the continued and codified provisions of the Retailers'
8 Occupation Tax Act, the Use Tax Act, the Service Occupation
9 Tax Act, or the Service Use Tax Act.
10 Section 5-30. Cost price. For purposes of the service
11 occupation tax and the service use tax, "cost price" means
12 the consideration paid by the serviceman for a purchase
13 valued in money, whether paid in money or otherwise,
14 including cash, credits and services, and shall be determined
15 without any deduction on account of the supplier's cost of
16 the property sold or on account of any other expense incurred
17 by the supplier. When a serviceman contracts out part or all
18 of the services required in his sale of service, it shall be
19 presumed that the cost price to the serviceman of the
20 property transferred to him or her by his or her
21 subcontractor is equal to 50% of the subcontractor's charges
22 to the serviceman in the absence of proof of the
23 consideration paid by the subcontractor for the purchase of
24 such property.
25 Section 5-50. Gross receipts. For purposes of the
26 retailers' occupation tax, "gross receipts" from the sales of
27 tangible personal property at retail means the total selling
28 price or the amount of such sales as defined in this Code. In
29 the case of charge and time sales, the amount thereof shall
30 be included only as and when payments are received by the
31 seller. Receipts or other consideration derived by a seller
32 from the sale, transfer or assignment of accounts receivable
-558- LRB9000671KDdvA
1 to a wholly owned subsidiary will not be deemed payments
2 prior to the time the purchaser makes payment on such
3 accounts.
4 Section 5-90. Purchased from a serviceman. For purposes
5 of the service use tax, "purchased from a serviceman" means
6 the acquisition of the ownership of, or title to, tangible
7 personal property through a sale of service.
8 Section 5-100. Reseller of motor fuel. For purposes of
9 the retailers' occupation tax, "reseller of motor fuel" means
10 any person engaged in the business of selling or delivering
11 or transferring title of motor fuel to another person other
12 than for use or consumption. No person shall act as a
13 reseller of motor fuel within this State without first being
14 registered as a reseller pursuant to Section 35-50 or a
15 retailer pursuant to Section 35-5.
16 Section 5-125. Serviceman. "Serviceman" means any person
17 who is engaged in the occupation of making sales of service.
18 Section 5-130. Serviceman maintaining a place of
19 business in this State. For purposes of the service use tax,
20 "serviceman maintaining a place of business in this State",
21 or any like term, means and includes any serviceman:
22 (1) having or maintaining within this State,
23 directly or by a subsidiary, an office, distribution
24 house, sales house, warehouse or other place of business,
25 or any agent or other representative operating within
26 this State under the authority of the serviceman or its
27 subsidiary, irrespective of whether such place of
28 business or agent or other representative is located here
29 permanently or temporarily, or whether such serviceman or
30 subsidiary is licensed to do business in this State;
-559- LRB9000671KDdvA
1 (2) soliciting orders for tangible personal
2 property by means of a telecommunication or television
3 shopping system (which utilizes toll free numbers) which
4 is intended by the retailer to be broadcast by cable
5 television or other means of broadcasting, to consumers
6 located in this State;
7 (3) pursuant to a contract with a broadcaster or
8 publisher located in this State, soliciting orders for
9 tangible personal property by means of advertising which
10 is disseminated primarily to consumers located in this
11 State and only secondarily to bordering jurisdictions;
12 (4) soliciting orders for tangible personal
13 property by mail if the solicitations are substantial and
14 recurring and if the retailer benefits from any banking,
15 financing, debt collection, telecommunication, or
16 marketing activities occurring in this State or benefits
17 from the location in this State of authorized
18 installation, servicing, or repair facilities;
19 (5) being owned or controlled by the same interests
20 which own or control any retailer engaging in business in
21 the same or similar line of business in this State;
22 (6) having a franchisee or licensee operating under
23 its trade name if the franchisee or licensee is required
24 to collect the tax under this Section;
25 (7) pursuant to a contract with a cable television
26 operator located in this State, soliciting orders for
27 tangible personal property by means of advertising which
28 is transmitted or distributed over a cable television
29 system in this State; or
30 (8) engaging in activities in Illinois, which
31 activities in the state in which the supply business
32 engaging in such activities is located would constitute
33 maintaining a place of business in that state.
-560- LRB9000671KDdvA
1 Section 5-135. Supplier. For purposes of the service
2 occupation tax and the service use tax, "supplier" means any
3 person who makes sales of tangible personal property to
4 servicemen for the purpose of resale as an incident to a sale
5 of service.
6 Section 5-140. Transfer. For purposes of the service
7 occupation tax, "transfer" means any transfer of the title to
8 property or of the ownership of property whether or not the
9 transferor retains title as security for the payment of
10 amounts due him from the transferee.
11 Section 10-5. Tax imposed. A tax is imposed upon persons
12 engaged in the business of selling at retail tangible
13 personal property, including computer software, and including
14 photographs, negatives, and positives that are the product of
15 photoprocessing, but not including products of
16 photoprocessing produced for use in motion pictures for
17 public commercial exhibition. The tax imposed in this Article
18 shall be known as the "retailers' occupation tax".
19 Section 10-10. Tax additional. The tax imposed in this
20 Article shall be in addition to all other occupation or
21 privilege taxes imposed by the State of Illinois or by any
22 municipal corporation or political subdivision thereof.
23 Section 10-15. Rate of tax. Unless otherwise provided
24 in this Section, the tax imposed by this Article is at the
25 rate of 6.25% of gross receipts from sales of tangible
26 personal property made in the course of business.
27 With respect to gasohol, as defined in Section 5-40, the
28 tax imposed by this Article applies to 70% of the proceeds of
29 sales made on or after January 1, 1990, and before July 1,
30 1999, and to 100% of the proceeds of sales made thereafter,
-561- LRB9000671KDdvA
1 except that from July 1, 1997 to July 1, 1999, the rate shall
2 be 85% for gasohol sold in this State during the 12 months
3 beginning July 1 following any calendar year for which the
4 Department has determined that the percentages in Section 10
5 of the Gasohol Fuels Tax Abatement Act have not been met.
6 With respect to food for human consumption that is to be
7 consumed off the premises where it is sold (other than
8 alcoholic beverages, soft drinks, and food that has been
9 prepared for immediate consumption) and prescription and
10 nonprescription medicines, drugs, medical appliances,
11 modifications to a motor vehicle for the purpose of rendering
12 it usable by a disabled person, and insulin, urine testing
13 materials, syringes, and needles used by diabetics, for human
14 use, the tax is imposed at the rate of 1%. For the purposes
15 of this Section, the term "soft drinks" means any complete,
16 finished, ready-to-use, non-alcoholic drink, whether
17 carbonated or not, including but not limited to soda water,
18 cola, fruit juice, vegetable juice, carbonated water, and all
19 other preparations commonly known as soft drinks of whatever
20 kind or description that are contained in any closed or
21 sealed bottle, can, carton, or container, regardless of size.
22 "Soft drinks" does not include coffee, tea, non-carbonated
23 water, infant formula, milk or milk products as defined in
24 the Grade A Pasteurized Milk and Milk Products Act, or drinks
25 containing 50% or more natural fruit or vegetable juice.
26 Notwithstanding any other provisions of this Code, "food
27 for human consumption that is to be consumed off the premises
28 where it is sold" includes all food sold through a vending
29 machine, except soft drinks and food products that are
30 dispensed hot from a vending machine, regardless of the
31 location of the vending machine.
32 Section 10-20. Purchaser refunds. If a seller collects
33 an amount (however designated) that purports to reimburse the
-562- LRB9000671KDdvA
1 seller for retailers' occupation tax liability measured by
2 receipts that are not subject to retailers' occupation tax,
3 or if a seller, in collecting an amount (however designated)
4 that purports to reimburse the seller for retailers'
5 occupation tax liability measured by receipts that are
6 subject to tax under this Article, collects more from the
7 purchaser than the seller's retailers' occupation tax
8 liability on the transaction, the purchaser shall have a
9 legal right to claim a refund of that amount from the seller.
10 If, however, that amount is not refunded to the purchaser for
11 any reason, the seller is liable to pay that amount to the
12 Department. This paragraph does not apply to an amount
13 collected by the seller as reimbursement for the seller's
14 retailers' occupation tax liability on receipts that are
15 subject to tax under this Article as long as the collection
16 is made in compliance with the tax collection brackets
17 prescribed by the Department in its rules and regulations.
18 Section 10-25. Serviceman transfer. Tangible personal
19 property purchased by a serviceman, as defined in Section
20 5-125, is subject to the tax imposed by this Article when
21 purchased for transfer by the serviceman incidental to
22 completion of a maintenance agreement.
23 Section 10-30. Prepayment of tax by motor fuel retailer.
24 Any person engaged in the business of selling motor fuel at
25 retail, as defined in the Motor Fuel Tax Law, and who is not
26 a licensed distributor or supplier, as defined in the Motor
27 Fuel Tax Law, shall prepay to his or her distributor,
28 supplier, or other reseller of motor fuel a portion of the
29 tax imposed by this Article if the distributor, supplier, or
30 other reseller of motor fuel is registered under Sections
31 35-5 through 35-50 of this Code. The prepayment requirement
32 provided for in this Section does not apply to liquid propane
-563- LRB9000671KDdvA
1 gas.
2 The retailers' occupation tax paid to the distributor,
3 supplier, or other reseller shall be an amount equal to $0.04
4 per gallon of the motor fuel, except gasohol as defined in
5 Section 5-40 of this Code which shall be an amount equal to
6 $0.03 per gallon, purchased from the distributor, supplier,
7 or other reseller.
8 Any person engaged in the business of selling motor fuel
9 at retail shall be entitled to a credit against tax due under
10 this Article in an amount equal to the tax paid to the
11 distributor, supplier, or other reseller.
12 Every distributor, supplier, or other reseller registered
13 as provided in Sections 35-5 through 35-50 of this Code shall
14 remit the prepaid tax on all motor fuel that is due from any
15 person engaged in the business of selling at retail motor
16 fuel with the returns filed under Section 10-40 or Sections
17 50-5 through 50-140 of this Code, but the vendors discount
18 provided in Sections 50-5 through 50-140 shall not apply to
19 the amount of prepaid tax that is remitted. Any distributor
20 or supplier who fails to properly collect and remit the tax
21 shall be liable for the tax. For purposes of this Section,
22 the prepaid tax is due on invoiced gallons sold during a
23 month by the 20th day of the following month.
24 Section 10-35. Motor fuel distributor or supplier;
25 statement of purchases. Every such distributor or supplier
26 shall deliver a statement of tax paid to each purchaser and
27 the Department of Revenue not later than the 20th day of the
28 month following the month during which a transaction
29 occurred, showing: the number of gallons of motor fuel sold
30 or distributed during the preceding month to that purchaser;
31 identifying the purchaser to whom it was sold or distributed,
32 including the purchaser's tax registration number; and the
33 amount collected from the purchaser.
-564- LRB9000671KDdvA
1 Section 10-40. Reseller of motor fuel; filing of
2 returns. Resellers of motor fuel shall file a return by the
3 20th of the month following the month during which a
4 transaction occurred showing an itemized statement of the
5 amount of motor fuel sold, distributed and used by the
6 reseller, identifying the purchaser to whom it was sold
7 including the purchaser's tax registration number, the amount
8 of tax collected from the purchaser, or delivery point if the
9 motor fuel was delivered to an unregistered purchaser outside
10 this State, name and address and the total quantity of motor
11 fuel sold or transferred to each purchaser in the preceding
12 calendar month and such other information as the Department
13 may reasonably require.
14 Section 10-45. Procedures for filing return of motor
15 fuel resellers. All provisions of Sections 30-30, 35-75,
16 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
17 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
18 apply to the retailers' occupation tax shall apply, as far as
19 practicable, to returns filed pursuant to Section 10-40.
20 Section 20-5. Tax imposed. A tax is imposed upon all
21 persons engaged in the business of making sales of service
22 (referred to as "servicemen") on all tangible personal
23 property transferred as an incident of a sale of service,
24 including computer software, and including photographs,
25 negatives, and positives that are the product of
26 photoprocessing, but not including products of
27 photoprocessing produced for use in motion pictures for
28 public commercial exhibition. The tax imposed in this Article
29 shall be known as the "service occupation tax".
30 Section 20-10. Tax additional. The tax imposed in this
31 Article shall be in addition to all other occupation or
-565- LRB9000671KDdvA
1 privilege taxes imposed by the State of Illinois or by any
2 municipal corporation or political subdivision thereof.
3 Section 20-15. Rate of tax. Unless otherwise provided in
4 this Section, the tax imposed by this Article is at the rate
5 of 6.25% of the "selling price", as defined in Section 5-120,
6 of the tangible personal property. For the purpose of
7 computing this tax, in no event shall the "selling price" be
8 less than the cost price to the serviceman of the tangible
9 personal property transferred. The selling price of each
10 item of tangible personal property transferred as an incident
11 of a sale of service may be shown as a distinct and separate
12 item on the serviceman's billing to the service customer. If
13 the selling price is not so shown, the selling price of the
14 tangible personal property is deemed to be 50% of the
15 serviceman's entire billing to the service customer. When,
16 however, a serviceman contracts to design, develop, and
17 produce special order machinery or equipment, the tax imposed
18 by this Article shall be based on the serviceman's cost price
19 of the tangible personal property transferred incident to the
20 completion of the contract.
21 With respect to gasohol, as defined in Section 5-40, the
22 tax imposed by this Article shall apply to 70% of the cost
23 price of property transferred as an incident to the sale of
24 service on or after January 1, 1990, and before July 1, 1999,
25 and to 100% of the cost price thereafter, except that from
26 July 1, 1997 to July 1, 1999, the rate shall be 85% for
27 gasohol sold in this State during the 12 months beginning
28 July 1 following any calendar year for which the Department
29 has determined that the percentages in Section 10 of the
30 Gasohol Fuels Tax Abatement Act have not been met.
31 At the election of any registered serviceman made for
32 each fiscal year, sales of service in which the aggregate
33 annual cost price of tangible personal property transferred
-566- LRB9000671KDdvA
1 as an incident to the sales of service is less than 35%, or
2 75% in the case of servicemen transferring prescription drugs
3 or servicemen engaged in graphic arts production, of the
4 aggregate annual total gross receipts from all sales of
5 service, the tax imposed by this Article shall be based on
6 the serviceman's cost price of the tangible personal property
7 transferred incident to the sale of those services.
8 The tax shall be imposed at the rate of 1% on food
9 prepared for immediate consumption and transferred incident
10 to a sale of service subject to this Article or Article 25 by
11 an entity licensed under the Hospital Licensing Act or the
12 Nursing Home Care Act. The tax shall also be imposed at the
13 rate of 1% on food for human consumption that is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks, and food that has been
16 prepared for immediate consumption and is not otherwise
17 included in this paragraph) and prescription and
18 nonprescription medicines, drugs, medical appliances,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a disabled person, and insulin, urine testing
21 materials, syringes, and needles used by diabetics, for human
22 use. For the purposes of this Section, the term "soft
23 drinks" means any complete, finished, ready-to-use,
24 non-alcoholic drink, whether carbonated or not, including but
25 not limited to soda water, cola, fruit juice, vegetable
26 juice, carbonated water, and all other preparations commonly
27 known as soft drinks of whatever kind or description that are
28 contained in any closed or sealed can, carton, or container,
29 regardless of size. "Soft drinks" does not include coffee,
30 tea, non-carbonated water, infant formula, milk or milk
31 products as defined in the Grade A Pasteurized Milk and Milk
32 Products Act, or drinks containing 50% or more natural fruit
33 or vegetable juice.
34 Notwithstanding any other provisions of this Code, "food
-567- LRB9000671KDdvA
1 for human consumption that is to be consumed off the premises
2 where it is sold" includes all food sold through a vending
3 machine, except soft drinks and food products that are
4 dispensed hot from a vending machine, regardless of the
5 location of the vending machine.
6 Section 20-20. Collection. The tax imposed by this
7 Article shall be paid to the Department by any serviceman
8 transferring tangible personal property as an incident to a
9 sale of service taxable under this Article. If a serviceman
10 has paid service occupation tax to his or her supplier based
11 upon the cost price of tangible personal property before
12 January 1, 1990, or in error on or after January 1, 1990, the
13 serviceman, without filing any formal claims with the
14 Department, shall be allowed to take credit against his or
15 her service occupation tax liability based upon the selling
16 price of that property transferred in the course of providing
17 service to the extent of the amount of the tax so paid.
18 If any serviceman collects an amount (however designated)
19 that purports to reimburse the serviceman for service
20 occupation tax liability measured by receipts or selling
21 prices that are not subject to service occupation tax, or if
22 any serviceman, in collecting an amount (however designated)
23 that purports to reimburse the serviceman for service
24 occupation tax liability measured by receipts or selling
25 prices that are subject to tax under this Article, collects
26 more from the purchaser than the serviceman's service
27 occupation tax liability in the transaction, the purchaser
28 shall have a legal right to claim a refund of that amount
29 from the serviceman. If, however, that amount is not refunded
30 to the purchaser by a serviceman for any reason, the supplier
31 or serviceman is liable to pay that amount to the Department.
32 This paragraph does not apply to an amount collected by the
33 supplier as service occupation tax, nor to an amount
-568- LRB9000671KDdvA
1 collected by the serviceman as reimbursement for the
2 serviceman's service occupation tax liability on receipts or
3 cost prices that are subject to tax under this Article, as
4 long as the collection is made in compliance with the tax
5 collection brackets prescribed by the Department in its rules
6 and regulations.
7 Section 25-5. Tax imposed. A tax is imposed upon the
8 privilege of using in this State real or tangible personal
9 property acquired as an incident to the purchase of a service
10 from a serviceman, including computer software, and including
11 photographs, negatives, and positives that are the product of
12 photoprocessing, but not including products of
13 photoprocessing produced for use in motion pictures for
14 public commercial exhibition. The tax imposed in this Article
15 shall be known as the "service use tax".
16 Section 25-10. Tax additional. The tax imposed in this
17 Article shall be in addition to all other occupation or
18 privilege taxes imposed by the State of Illinois or by any
19 municipal corporation or political subdivision thereof.
20 Section 25-15. Rate of tax. Unless otherwise provided
21 in this Section, the tax imposed by this Article is at the
22 rate of 6.25% of the selling price of tangible personal
23 property transferred as an incident to the sale of service,
24 but, for the purpose of computing this tax, in no event shall
25 the selling price be less than the cost price of the property
26 to the serviceman.
27 With respect to gasohol, as defined in Section 5-40, the
28 tax imposed by this Article applies to 70% of the selling
29 price of property transferred as an incident to the sale of
30 service on or after January 1, 1990, and before July 1, 1999,
31 and to 100% of the selling price thereafter, except that from
-569- LRB9000671KDdvA
1 July 1, 1997 to July 1, 1999, the rate shall be 85% for
2 gasohol sold in this State during the 12 months beginning
3 July 1 following any calendar year for which the Department
4 has determined that the percentages in Section 10 of the
5 Gasohol Fuels Tax Abatement Act have not been met.
6 At the election of any registered serviceman made for
7 each fiscal year, sales of service in which the aggregate
8 annual cost price of tangible personal property transferred
9 as an incident to the sales of service is less than 35%, or
10 75% in the case of servicemen transferring prescription drugs
11 or servicemen engaged in graphic arts production, of the
12 aggregate annual total gross receipts from all sales of
13 service, the tax imposed by this Article shall be based on
14 the serviceman's cost price of the tangible personal property
15 transferred as an incident to the sale of those services.
16 The tax shall be imposed at the rate of 1% on food
17 prepared for immediate consumption and transferred incident
18 to a sale of service subject to this Article or Article 20
19 by an entity licensed under the Hospital Licensing Act or the
20 Nursing Home Care Act. The tax shall also be imposed at the
21 rate of 1% on food for human consumption that is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks, and food that has been
24 prepared for immediate consumption and is not otherwise
25 included in this paragraph) and prescription and
26 nonprescription medicines, drugs, medical appliances,
27 modifications to a motor vehicle for the purpose of rendering
28 it usable by a disabled person, and insulin, urine testing
29 materials, syringes, and needles used by diabetics, for human
30 use. For the purposes of this Section, the term "soft drinks"
31 means any complete, finished, ready-to-use, non-alcoholic
32 drink, whether carbonated or not, including but not limited
33 to soda water, cola, fruit juice, vegetable juice, carbonated
34 water, and all other preparations commonly known as soft
-570- LRB9000671KDdvA
1 drinks of whatever kind or description that are contained in
2 any closed or sealed bottle, can, carton, or container,
3 regardless of size. "Soft drinks" does not include coffee,
4 tea, non-carbonated water, infant formula, milk or milk
5 products as defined in the Grade A Pasteurized Milk and Milk
6 Products Act, or drinks containing 50% or more natural fruit
7 or vegetable juice.
8 Notwithstanding any other provisions of this Code, "food
9 for human consumption that is to be consumed off the premises
10 where it is sold" includes all food sold through a vending
11 machine, except soft drinks and food products that are
12 dispensed hot from a vending machine, regardless of the
13 location of the vending machine.
14 If the property that is acquired from a serviceman is
15 acquired outside Illinois and used outside Illinois before
16 being brought to Illinois for use here and is taxable under
17 this Article, the "selling price" on which the tax is
18 computed shall be reduced by an amount that represents a
19 reasonable allowance for depreciation for the period of prior
20 out-of-state use.
21 Section 25-20. Collection. The tax imposed by this
22 Article shall be collected at the time of purchase in the
23 manner prescribed by the Department from the user by a
24 serviceman maintaining a place of business in this State or
25 by a serviceman authorized by the Department under Section
26 60-10 of this Code, and the tax shall be remitted to the
27 Department as provided in Sections 50-5 through 50-140 of
28 this Code.
29 The tax imposed by this Article that is not paid to a
30 serviceman under this Section shall be paid to the Department
31 directly by any person using the property within this State
32 as provided in Section 50-155 of this Code.
33 If a serviceman collects service use tax measured by
-571- LRB9000671KDdvA
1 receipts or selling prices that are not subject to service
2 use tax, or if a serviceman, in collecting service use tax
3 measured by receipts or selling prices that are subject to
4 tax under this Article, collects more from the purchaser than
5 the required amount of the service use tax on the
6 transaction, the purchaser shall have a legal right to claim
7 a refund of that amount from the serviceman. If, however,
8 that amount is not refunded to the purchaser for any reason,
9 the serviceman is liable to pay that amount to the
10 Department. This paragraph does not apply to an amount
11 collected by the serviceman as service use tax on receipts or
12 selling prices that are subject to tax under this Article as
13 long as the collection is made in compliance with the tax
14 collection brackets prescribed by the Department in its rules
15 and regulations.
16 Section 25-25. S. O. T. nontaxability. If the
17 serviceman would not be taxable under Article 20 of this Code
18 despite all elements of his sale of service occurring in
19 Illinois, then the tax imposed by this Article does not apply
20 to the use in this State of the property transferred as a
21 necessary incident to the sale of service.
22 Section 25-30. Method of stating tax. The tax imposed by
23 this Article may be stated as a distinct item separate and
24 apart from the selling price of the service, and shall be so
25 stated when requested by the buyer.
26 Section 25-35. Selling price of tangible personal
27 property transferred incident to a sale of service.
28 (a) Except as provided in subsection (b) of this
29 Section, the selling price of each item of tangible personal
30 property transferred incident to a sale of service may be
31 stated as a distinct item by the serviceman to the service
-572- LRB9000671KDdvA
1 customer and the tax imposed by this Article shall when
2 collected be stated as a distinct item separate and apart
3 from the selling price of the tangible personal property. If
4 the selling price of each item of tangible personal property
5 transferred incidental to a sale of service is not stated as
6 a separate item on the serviceman's billing to the service
7 customer, then the tax imposed by this Article shall be based
8 on 50% of the serviceman's entire billing to the service
9 customer.
10 (b) When a serviceman contracts to design, develop and
11 produce special order machinery or equipment, the tax imposed
12 by this Article shall be based on the serviceman's cost price
13 of the tangible personal property transferred incident to the
14 completion of the contract.
15 Section 30-10. Tangible personal property used or
16 consumed in pollution control facilities. For purposes of
17 the taxes imposed by this Code, subject to the provisions of
18 Section 35-55, or subject to the provisions of Section 5.5 of
19 the Illinois Enterprise Zone Act, all tangible personal
20 property to be used or consumed in the operation of pollution
21 control facilities, as defined in Section 5-75, within an
22 enterprise zone established pursuant to the Illinois
23 Enterprise Zone Act shall be exempt.
24 Section 30-20. Designated tangible personal property;
25 enterprise zone; high impact business. Subject to the
26 provisions of Section 35-55, all tangible personal property
27 to be used or consumed within an enterprise zone established
28 pursuant to the Illinois Enterprise Zone Act or subject to
29 the provisions of Section 5.5 of the Illinois Enterprise Zone
30 Act, all tangible personal property to be used or consumed by
31 any high impact business, in the process of the manufacturing
32 or assembly of tangible personal property for wholesale or
-573- LRB9000671KDdvA
1 retail sale or lease or in the process of graphic arts
2 production if used or consumed at a facility which is a
3 Department of Commerce and Community Affairs certified
4 business and located in a county of more than 4,000 persons
5 and less than 45,000 persons is exempt from the taxes imposed
6 by this Code. This exemption includes repair and replacement
7 parts for machinery and equipment used primarily in the
8 process of manufacturing or assembling tangible personal
9 property or in the process of graphic arts production if used
10 or consumed at a facility which is a Department of Commerce
11 and Community Affairs certified business and located in a
12 county of more than 4,000 persons and less than 45,000
13 persons for wholesale or retail sale, or lease, and
14 equipment, manufacturing or graphic arts fuels, material and
15 supplies for the maintenance, repair or operation of such
16 manufacturing or assembling or graphic arts machinery or
17 equipment.
18 Section 30-25. Exemption - Machinery or Equipment used
19 in the operation of high impact service facilities. Subject
20 to the provisions of Section 35-85 of this Code, machinery or
21 equipment used in the operation of a high impact service
22 facility, as defined in Section 35-85 of this Code, located
23 within an enterprise zone established pursuant to the
24 Illinois Enterprise Zone Act shall be exempt from the taxes
25 imposed by this Code. Machinery and equipment, new and
26 replacement, shall include, but not be limited to: (i) motor
27 driven heavy equipment not considered rolling stock which is
28 used for the purpose of transporting parcels, machinery, or
29 equipment, or trailers used for the shipment of parcels, and
30 equipment used to maintain and provide in-house services,
31 within the confines of the facility, and (ii) automated
32 machinery and equipment used for the purposes of transporting
33 parcels within the facility, along with all components,
-574- LRB9000671KDdvA
1 parts, pieces, and computer software or hardware contained in
2 the electronic control systems related thereto. The
3 Department of Revenue shall promulgate such rules and
4 regulations as necessary to further define machinery and
5 equipment eligible for exemption in a high impact service
6 facility.
7 Section 30-30. High impact; building materials.
8 Beginning January 1, 1995, each retailer who makes a sale of
9 building materials that will be incorporated into a high
10 impact business location as designated by the Department of
11 Commerce and Community Affairs under Section 5.5 of the
12 Illinois Enterprise Zone Act may deduct receipts from such
13 sales when calculating only the 6.25% State rate of taxes
14 imposed by this Code. Beginning June 30, 1995, a retailer
15 may also deduct receipts from such sales when calculating any
16 applicable local taxes. However, until June 30, 1995, a
17 retailer may file claims for credit or refund to recover the
18 amount of any applicable local tax paid on such sales. No
19 retailer who is eligible for the deduction or credit under
20 Section 35-90 of this Code for making a sale of building
21 materials to be incorporated into real estate in an
22 enterprise zone by rehabilitation, remodeling or new
23 construction shall be eligible for the deduction or credit
24 authorized under this Section.
25 Section 30-35. Machinery and equipment used in aircraft
26 maintenance facility. Subject to the provisions of Section
27 35-80 of this Code, machinery and equipment used in the
28 operation of an aircraft maintenance facility as defined in
29 Section 35-80, located within an enterprise zone shall be
30 exempt from the taxes imposed by this Code. The machinery
31 and equipment exempted by this Section is limited to
32 machinery and equipment used primarily to maintain, rebuild
-575- LRB9000671KDdvA
1 or repair aircraft used as rolling stock moving in interstate
2 commerce for hire by the operator of the facility. The
3 Department of Revenue shall promulgate any rules and
4 regulations necessary to further define machinery and
5 equipment eligible for exemption in an aircraft maintenance
6 facility.
7 Section 30-40. Tangible personal property used or
8 consumed in aircraft maintenance facility. Subject to the
9 provisions of Section 35-80, all tangible personal property
10 to be used or consumed, within an enterprise zone established
11 pursuant to the Illinois Enterprise Zone Act, by any aircraft
12 maintenance facility, directly in the process of maintaining,
13 rebuilding or repairing aircraft is exempt from the taxes
14 imposed by this Code. The exemption includes repair and
15 replacement parts for machinery and equipment used primarily
16 in the process of maintaining, rebuilding or repairing
17 aircraft, and also includes equipment, fuels, material and
18 supplies for the maintenance, repair or operation of such
19 machinery or equipment.
20 Section 30-120. Petroleum products. For purposes of the
21 retailers' occupation tax, petroleum products sold to a
22 purchaser if the seller is prohibited by federal law from
23 charging tax to the purchaser are exempt.
24 Section 30-130. Fuel consumed by ships. For purposes of
25 the retailers' occupation tax, fuel consumed or used in the
26 operation of ships, barges, or vessels that are used
27 primarily in or for the transportation of property or the
28 conveyance of persons for hire on rivers bordering on this
29 State if the fuel is delivered by the seller to the
30 purchaser's barge, ship, or vessel while it is afloat upon
31 that bordering river is exempt.
-576- LRB9000671KDdvA
1 Section 30-215. Interstate commerce exemption. No tax
2 is imposed by Article 10 or Article 20 upon the privilege of
3 engaging in a business in interstate commerce or otherwise,
4 when the business may not, under the Constitution and
5 statutes of the United States, be made the subject of
6 taxation by this State.
7 Section 30-235. Sale of service. For purposes of the
8 service occupation tax and the service use tax, "sale of
9 service" means any transaction except:
10 (1) a retail sale of tangible personal property
11 taxable under Article 10 or Article 15.
12 (2) a sale of tangible personal property for the
13 purpose of resale made in compliance with Section 35-50.
14 (3) for purposes of the service occupation tax
15 only, until January 1, 1997, a sale, by a registered
16 serviceman paying service occupation tax to the
17 Department, of special order printed materials delivered
18 outside Illinois and which are not returned to this
19 State, if delivery is made by the seller or agent of the
20 seller, including an agent who causes the product to be
21 delivered outside Illinois by a common carrier or the
22 U.S. postal service.
23 Section 30-240. Election not to be sale of service. For
24 purposes of the service occupation tax and the service use
25 tax, "sale of service" shall not include, at the election of
26 any serviceman not required to be otherwise registered as a
27 retailer under Sections 35-5 through 35-45, made for each
28 fiscal year sales of service in which the aggregate annual
29 cost price of tangible personal property transferred as an
30 incident to the sales of service is less than 35%, or 75% in
31 the case of servicemen transferring prescription drugs or
32 servicemen engaged in graphic arts production, of the
-577- LRB9000671KDdvA
1 aggregate annual total gross receipts from all sales of
2 service. The purchase of such tangible personal property by
3 the serviceman shall be subject to the retailers' occupation
4 tax and the use tax. However, if a primary serviceman who
5 has made the election described in this Section subcontracts
6 service work to a secondary serviceman who has also made the
7 election described in this Section, the primary serviceman
8 does not incur a use tax liability if the secondary
9 serviceman (i) has paid or will pay use tax on his or her
10 cost price of any tangible personal property transferred to
11 the primary serviceman and (ii) certifies that fact in
12 writing to the primary serviceman.
13 Section 30-245. Maintenance agreement. Tangible personal
14 property transferred incident to the completion of a
15 maintenance agreement is exempt from the taxes imposed
16 pursuant to Article 20 and Article 25.
17 Section 35-5. Certificate of registration.
18 (a) All of the provisions of Section 35-5 and Sections
19 35-25 through 35-45 of this Code concerning registration
20 shall apply to the retailers' occupation tax, the use tax,
21 the service occupation tax, and the service use tax unless
22 otherwise stated. To the extent that any provision
23 specifically applying to the use tax, the service occupation
24 tax, or the service use tax is inconsistent with a general
25 provision applying to all of the taxes, the specific
26 provision shall control.
27 (b) It is unlawful for any person to engage in the
28 business of selling tangible personal property at retail in
29 this State without a certificate of registration from the
30 Department. Application for a certificate of registration
31 shall be made to the Department upon forms furnished by it.
32 Each such application shall be signed and verified and shall
-578- LRB9000671KDdvA
1 state: (1) the name and social security number of the
2 applicant; (2) the address of his principal place of
3 business; (3) the address of the principal place of business
4 from which he engages in the business of selling tangible
5 personal property at retail in this State and the addresses
6 of all other places of business, if any (enumerating such
7 addresses, if any, in a separate list attached to and made a
8 part of the application), from which he engages in the
9 business of selling tangible personal property at retail in
10 this State; (4) the name and address of the person or persons
11 who will be responsible for filing returns and payment of
12 taxes due under Article 10 of this Code; (5) in the case of a
13 corporation, the name, title, and social security number of
14 each corporate officer; (6) in the case of a limited
15 liability company, the name, social security number, and FEIN
16 number of each manager and member; and (7) such other
17 information as the Department may reasonably require. The
18 application shall contain an acceptance of responsibility
19 signed by the person or persons who will be responsible for
20 filing returns and payment of the taxes due under Article 10.
21 If the applicant will sell tangible personal property at
22 retail through vending machines, his application to register
23 shall indicate the number of vending machines to be so
24 operated; and thereafter, he shall notify the Department by
25 January 31 of the number of vending machines which such
26 person was using in his business of selling tangible personal
27 property at retail on the preceding December 31.
28 The Department may deny a certificate of registration to
29 any applicant if the owner, any partner, any manager or
30 member of a limited liability company, or a corporate officer
31 of the applicant, is or has been the owner, a partner, a
32 manager or member of a limited liability company, or a
33 corporate officer, of another retailer that is in default for
34 moneys due under this Code.
-579- LRB9000671KDdvA
1 Section 35-15. Certificate of registration; service
2 occupation tax. A supplier maintaining a place of business
3 in this State, if required to register for purposes of the
4 retailers' occupation tax, the use tax, or the service use
5 tax, need not obtain an additional certificate of
6 registration for purposes of the service occupation tax, but
7 shall be deemed to be sufficiently registered by virtue of
8 his being registered for purposes of the retailers'
9 occupation tax, the use tax, or the service use tax. Every
10 supplier maintaining a place of business in this State, if
11 not required to register for purposes of the retailers'
12 occupation tax, the use tax, or the service use tax, shall
13 apply to the Department (upon a form prescribed and furnished
14 by the Department) for a certificate of registration for
15 purposes of the service occupation tax. Every serviceman
16 maintaining a place of business in this State, if not
17 required to register for purposes of the retailers'
18 occupation tax, the use tax, or the service use tax, and
19 desiring to or required to pay the tax imposed by Article 20
20 directly to the Department, shall apply to the Department
21 (upon a form prescribed and furnished by the Department) for
22 a certificate of registration for purposes of the service
23 occupation tax.
24 Section 35-20. Certificate of registration; service use
25 tax. A serviceman maintaining a place of business in this
26 State, if required to register for purposes of the retailers'
27 occupation tax, for purposes of the use tax, or for purposes
28 of the service occupation tax, need not obtain an additional
29 certificate of registration for purposes of the service use
30 tax, but shall be deemed to be sufficiently registered by
31 virtue of his being registered for purposes of the retailers'
32 occupation tax, the use tax, or the service occupation tax.
33 Every serviceman maintaining a place of business in this
-580- LRB9000671KDdvA
1 State, if not required to register for purposes of the
2 retailers' occupation tax, the use tax, or the service
3 occupation tax, shall apply to the Department (upon a form
4 prescribed and furnished by the Department) for a certificate
5 of registration for purposes of the service use tax.
6 Section 35-25. Bonds.
7 (a) Every applicant for a certificate of registration
8 shall, at the time of filing such application, furnish a bond
9 from a surety company authorized to do business in the State
10 of Illinois, or an irrevocable bank letter of credit or a
11 bond signed by 2 personal sureties who have filed, with the
12 Department, sworn statements disclosing net assets equal to
13 at least 3 times the amount of the bond to be required of
14 such applicant, or a bond secured by an assignment of a bank
15 account or certificate of deposit, stocks or bonds,
16 conditioned upon the applicant paying to the State of
17 Illinois all moneys becoming due under this Code and under
18 any other State tax law or municipal or county tax ordinance
19 or resolution under which the certificate of registration
20 that is issued to the applicant under Sections 35-5 through
21 35-20 will permit the applicant to engage in business without
22 registering separately under such other law, ordinance or
23 resolution. The Department shall fix the amount of such
24 security in each case, taking into consideration the amount
25 of money expected to become due from the applicant under this
26 Code and under any other State tax law or municipal or county
27 tax ordinance or resolution under which the certificate of
28 registration that is issued to the applicant under Sections
29 35-5 through 35-20 will permit the applicant to engage in
30 business without registering separately under such other law,
31 ordinance or resolution. The amount of security required by
32 the Department shall be such as, in its opinion, will protect
33 the State of Illinois against failure to pay the amount which
-581- LRB9000671KDdvA
1 may become due from the applicant under this Code and under
2 any other State tax law or municipal or county tax ordinance
3 or resolution under which the certificate of registration
4 that is issued to the applicant under Sections 35-5 through
5 35-20 will permit the applicant to engage in business without
6 registering separately under such other law, ordinance or
7 resolution, but the amount of the security required by the
8 Department shall not exceed three times the amount of the
9 applicant's average monthly tax liability, or $50,000.00,
10 whichever amount is lower.
11 (b) With respect to security other than bonds (upon which
12 the Department may sue in the event of a forfeiture), if the
13 taxpayer fails to pay, when due, any amount whose payment
14 such security guarantees, the Department shall, after such
15 liability is admitted by the taxpayer or established by the
16 Department through the issuance of a final assessment that
17 has become final under the law, convert the security which
18 that taxpayer has furnished into money for the State, after
19 first giving the taxpayer at least 10 days' written notice,
20 by registered or certified mail, to pay the liability or
21 forfeit such security to the Department. If the security
22 consists of stocks or bonds or other securities which are
23 listed on a public exchange, the Department shall sell such
24 securities through such public exchange. If the security
25 consists of an irrevocable bank letter of credit, the
26 Department shall convert the security in the manner provided
27 for in the Uniform Commercial Code. If the security consists
28 of a bank certificate of deposit, the Department shall
29 convert the security into money by demanding and collecting
30 the amount of such bank certificate of deposit from the bank
31 which issued such certificate. If the security consists of a
32 type of stocks or other securities which are not listed on a
33 public exchange, the Department shall sell such security to
34 the highest and best bidder after giving at least 10 days'
-582- LRB9000671KDdvA
1 notice of the date, time and place of the intended sale by
2 publication in the "State Official Newspaper". If the
3 Department realizes more than the amount of such liability
4 from the security, plus the expenses incurred by the
5 Department in converting the security into money, the
6 Department shall pay such excess to the taxpayer who
7 furnished such security, and the balance shall be paid into
8 the State Treasury.
9 (c) No certificate of registration under this Code shall
10 be issued by the Department until the applicant provides the
11 Department with satisfactory security as herein provided for.
12 (d) The Department shall discharge any surety and shall
13 release and return any security deposited, assigned, pledged
14 or 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 as defined in Section 35-35; 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
21 an amount sufficient to discharge his remaining tax
22 liability, as determined by the Department, under this
23 Code and under every other State tax law or municipal or
24 county tax ordinance or resolution under which the
25 certificate of registration issued under Sections 35-5
26 through 35-20 permits the registrant to engage in
27 business without registering separately under such other
28 law, ordinance or resolution. The Department shall make
29 a final determination of the taxpayer's outstanding tax
30 liability as expeditiously as possible after his final
31 tax return has been filed; if the Department cannot make
32 such final determination within 45 days after receiving
33 the final tax return, within such period it shall so
34 notify the taxpayer, stating its reasons therefor.
-583- LRB9000671KDdvA
1 Section 35-35. Prior continuous compliance taxpayer.
2 (a) Any person who is registered under Section 35-5 as of
3 March 8, 1963, and who, during the 3-year period immediately
4 prior to March 8, 1963, or during a continuous 3-year period
5 part of which passed immediately before and the remainder of
6 which passes immediately after March 8, 1963, has been so
7 registered continuously and who is determined by the
8 Department not to have been either delinquent or deficient in
9 the payment of tax liability during that period under this
10 Code or under any other State tax law or municipal or county
11 tax ordinance or resolution under which the certificate of
12 registration that is issued to the registrant under this Code
13 will permit the registrant to engage in business without
14 registering separately under such other law, ordinance or
15 resolution, shall be considered to be a Prior Continuous
16 Compliance taxpayer. Also any taxpayer who has, as verified
17 by the Department, faithfully and continuously complied with
18 the condition of his bond or other security under the
19 provisions of this Code for a period of 3 consecutive years
20 shall be considered to be a Prior Continuous Compliance
21 taxpayer.
22 (b) Every Prior Continuous Compliance taxpayer shall be
23 exempt from all requirements under this Code concerning the
24 furnishing of security as a condition precedent to his being
25 authorized to engage in the business of selling tangible
26 personal property at retail in this State. This exemption
27 shall continue for each such taxpayer until such time as he
28 may be determined by the Department to be delinquent in the
29 filing of any returns, or is determined by the Department
30 (either through the Department's issuance of a final
31 assessment which has become final under the Code, or by the
32 taxpayer's filing of a return which admits tax that is not
33 paid to be due) to be delinquent or deficient in the paying
34 of any tax under this Code or under any other State tax law
-584- LRB9000671KDdvA
1 or municipal or county tax ordinance or resolution under
2 which the certificate of registration that is issued to the
3 registrant under Sections 35-5 through 35-20 will permit the
4 registrant to engage in business without registering
5 separately under such other law, ordinance or resolution, at
6 which time that taxpayer shall become subject to all the
7 financial responsibility requirements of this Code and, as a
8 condition of being allowed to continue to engage in the
9 business of selling tangible personal property at retail,
10 shall be required to post bond or other acceptable security
11 with the Department covering liability which such taxpayer
12 may thereafter incur. Any taxpayer who fails to pay an
13 admitted or established liability under this Code may also be
14 required to post bond or other acceptable security with this
15 Department guaranteeing the payment of such admitted or
16 established liability.
17 Section 35-40. Registrants in default. No certificate of
18 registration shall be issued to any person who is in default
19 to the State of Illinois for moneys due under this Code or
20 under any other State tax law or municipal or county tax
21 ordinance or resolution under which the certificate of
22 registration that is issued to the applicant under this Code
23 will permit the applicant to engage in business without
24 registering separately under such other law, ordinance or
25 resolution.
26 Section 35-45. Hearings. Any person aggrieved by any
27 decision of the Department under Sections 35-5 through 35-40
28 may, within 20 days after notice of such decision, protest
29 and request a hearing, whereupon the Department shall give
30 notice to such person of the time and place fixed for such
31 hearing and shall hold a hearing in conformity with the
32 provisions of this Code and then issue its final
-585- LRB9000671KDdvA
1 administrative decision in the matter to such person. In the
2 absence of such a protest within 20 days, the Department's
3 decision shall become final without any further determination
4 being made or notice given.
5 Section 35-50. Resale number. If the purchaser is not
6 registered with the Department as a taxpayer, but claims to
7 be a reseller of the tangible personal property in such a way
8 that such resales are not taxable under this Code or under
9 some other tax law which the Department may administer, such
10 purchaser (except in the case of an out-of-State purchaser
11 who will always resell and deliver the property to his
12 customers outside Illinois) shall apply to the Department for
13 a resale number. Such applicant shall state facts which will
14 show the Department why such applicant is not liable for tax
15 under this Code or under some other tax law which the
16 Department may administer on any of his resales and shall
17 furnish such additional information as the Department may
18 reasonably require.
19 Upon approval of the application, the Department shall
20 assign a resale number to the applicant and shall certify
21 such number to him. The Department may cancel any such number
22 which is obtained through misrepresentation, or which is used
23 to make a purchase tax-free when the purchase in fact is not
24 a purchase for resale, or which no longer applies because of
25 the purchaser's having discontinued the making of tax exempt
26 resales of the property.
27 The Department may restrict the use of the number to one
28 year at a time or to some other definite period if the
29 Department finds it impracticable or otherwise inadvisable to
30 issue such numbers for indefinite periods.
31 Except as provided hereinabove in this Section, a sale
32 shall be made tax-free on the ground of being a sale for
33 resale if the purchaser has an active registration number or
-586- LRB9000671KDdvA
1 resale number from the Department and furnishes that number
2 to the seller in connection with certifying to the seller
3 that any sale to such purchaser is nontaxable because of
4 being a sale for resale.
5 Failure to present an active registration number or
6 resale number and a certification to the seller that a sale
7 is for resale creates a presumption that a sale is not for
8 resale. This presumption may be rebutted by other evidence
9 that all of the seller's sales are sale for resale, or that a
10 particular sale is a sale for resale.
11 Section 35-55. High impact business. Except for high
12 impact businesses, the exemption stated in Sections 30-10 and
13 30-20 shall only apply to business enterprises which:
14 (1) either (i) make investments which cause the
15 creation of a minimum of 200 full-time equivalent jobs in
16 Illinois or (ii) make investments which cause the
17 retention of a minimum of 2000 full-time jobs in Illinois
18 or (iii) make investments of a minimum of $40,000,000 and
19 retain at least 90% of the jobs in place on the date on
20 which the exemption is granted and for the duration of
21 the exemption; and
22 (2) are located in an enterprise zone established
23 pursuant to the Illinois Enterprise Zone Act; and
24 (3) are certified by the Department of Commerce and
25 Community Affairs as complying with the requirements
26 specified in clauses (1), (2) and (3).
27 Any business enterprise seeking to avail itself of the
28 exemptions stated in Sections 30-10 or 30-20, or both, shall
29 make application to the Department of Commerce and Community
30 Affairs in such form and providing such information as may be
31 prescribed by the Department of Commerce and Community
32 Affairs. However, no business enterprise shall be required,
33 as a condition for certification under clause (3) of this
-587- LRB9000671KDdvA
1 Section, to attest that its decision to invest under clause
2 (1) of this Section and to locate under clause (2) of this
3 Section is predicated upon the availability of the exemptions
4 authorized by Sections 30-10 or 30-20.
5 The Department of Commerce and Community Affairs shall
6 determine whether the business enterprise meets the criteria
7 prescribed in this Section. If the Department of Commerce
8 and Community Affairs determines that such business
9 enterprise meets the criteria, it shall issue a certificate
10 of eligibility for exemption to the business enterprise in
11 such form as is prescribed by the Department of Revenue. The
12 Department of Commerce and Community Affairs shall act upon
13 such certification requests within 60 days after receipt of
14 the application, and shall file with the Department of
15 Revenue a copy of each certificate of eligibility for
16 exemption.
17 The Department of Commerce and Community Affairs shall
18 have the power to promulgate rules and regulations to carry
19 out the provisions of this Section including the power to
20 define the amounts and types of eligible investments not
21 specified in this Section which business enterprises must
22 make in order to receive the exemptions stated in Sections
23 30-10 and 30-20 of this Code; and to require that any
24 business enterprise that is granted a tax exemption repay the
25 exempted tax if the business enterprise fails to comply with
26 the terms and conditions of the certification.
27 Such certificate of eligibility for exemption shall be
28 presented by the business enterprise to its supplier when
29 making the initial purchase of tangible personal property for
30 which an exemption is granted by Section 30-10 or Section
31 30-20, or both, together with a certification by the business
32 enterprise that such tangible personal property is exempt
33 from taxation under Section 30-10 or Section 30-20 and by
34 indicating the exempt status of each subsequent purchase on
-588- LRB9000671KDdvA
1 the face of the purchase order.
2 The Department of Commerce and Community Affairs shall
3 determine the period during which such exemption from the
4 taxes imposed under this Code is in effect which shall not
5 exceed 20 years.
6 Section 35-60. Exemption identification number. On or
7 before December 31, 1986, except as hereinafter provided,
8 each entity otherwise eligible under Section 30-170 shall
9 make application to the Department for an exemption
10 identification number. In the case of a corporation, society,
11 association, foundation, or institution organized and
12 operated exclusively for charitable purposes and that has
13 more than 50 subsidiary organizations in Illinois, the
14 Department, in its sole discretion, may issue one exemption
15 identification number to be used by the parent organization
16 and each subsidiary organization.
17 Each exemption identification number or renewal number
18 shall be valid for 5 years after the first day of the month
19 following the month of issuance. Not less than 3 months
20 before the expiration date, an application for renewal shall
21 be filed.
22 Each application for an exemption identification number
23 or a renewal number shall contain information and be
24 accompanied by documentation as shall be requested by the
25 Department.
26 Section 35-65. Exemption identification number; list.
27 Upon request made on or after July 1, 1987, the Department
28 shall furnish to any county or municipality a list containing
29 the name of each corporation, society, association,
30 foundation or institution organized and operated exclusively
31 for charitable, religious or educational purposes, and each
32 not-for-profit corporation, society, association, foundation,
-589- LRB9000671KDdvA
1 institution or organization which has no compensated officers
2 or employees and which is organized and operated primarily
3 for the recreation of persons 55 years of age or older, which
4 had a valid exemption identification number on the first day
5 of January or July, as the case may be, proceeding the date
6 on which such request is received and which is located within
7 the corporate limits of such municipality or the
8 unincorporated territory of such county, except that the list
9 need not include subsidiary organizations using an exemption
10 identification number issued to its parent organization as
11 provided by Section 30-20.
12 Section 35-75. Exemption from bonding; Department of
13 Revenue. The Department is not required to furnish any bond
14 nor to make a deposit for or pay any costs or fees of any
15 court or officer thereof in any judicial proceedings under
16 this Code. Whenever a certified copy of a judgment or order
17 for attachment, issued from any court for the enforcement or
18 collection of any liability created by this Code, is levied
19 by any sheriff or coroner upon any personal property, and
20 such property is claimed by any person other than the
21 judgment debtor or the defendant in the attachment, or is
22 claimed by the judgment debtor or defendant in the attachment
23 as exempt from enforcement of a judgment thereon by virtue of
24 the exemption laws of this State, then the person making such
25 claim shall give notice in writing of his or her claim and of
26 his or her intention to prosecute the claim, to the sheriff
27 or coroner within 10 days after the making of the levy. On
28 receiving such notice, the sheriff or coroner shall proceed
29 in accordance with Part 2 of Article XII of the Code of Civil
30 Procedure, as amended. The giving of such notice within the
31 10 day period is a condition precedent to any judicial action
32 against the sheriff or coroner for wrongfully levying,
33 seizing or selling the property and any such person who fails
-590- LRB9000671KDdvA
1 to give such notice within that time is barred from bringing
2 any judicial action against such sheriff or coroner for
3 injury or damages to or conversion of the property.
4 Section 35-80. Aircraft maintenance facility. Aircraft
5 maintenance facility means a facility operated by an
6 interstate carrier for hire that is used primarily for the
7 maintenance, rebuilding or repair of aircraft, aircraft parts
8 and auxiliary equipment owned or leased by that carrier and
9 used by that carrier as rolling stock moving in interstate
10 commerce, and which: (1) will make an investment by the
11 interstate carrier for hire of $400,000,000 or more in an
12 enterprise zone; (2) will cause the creation of at least
13 5,000 full-time jobs in that enterprise zone; (3) is located
14 in a county with population not less than 150,000 and not
15 more than 200,000 and that contains 3 enterprise zones as of
16 December 31, 1990; (4) enters into a legally binding
17 agreement with the Department of Commerce and Community
18 Affairs to comply with clauses (1) and (2) of this paragraph
19 within a time period specified in the rules and regulations
20 promulgated pursuant to this Section; and (5) is certified by
21 the Department of Commerce and Community Affairs to be in
22 compliance with clauses (1), (2), (3) and (4) of this
23 Section. Any aircraft maintenance facility applying for the
24 exemption stated in this Section shall make application to
25 the Department of Commerce and Community Affairs in such form
26 and providing such information as may be prescribed by the
27 Department of Commerce and Community Affairs.
28 The Department of Commerce and Community Affairs shall
29 determine whether the facility meets the criteria prescribed
30 in this Section. If the Department of Commerce and Community
31 Affairs determines that the facility meets the criteria, it
32 shall issue a certificate of eligibility for exemption in the
33 form prescribed by the Department of Revenue to the business
-591- LRB9000671KDdvA
1 enterprise operating the facility. The Department of
2 Commerce and Community Affairs shall act upon certification
3 request within 60 days after receipt of application, and
4 shall file with the Department of Revenue a copy of each
5 certificate of eligibility for exemption.
6 The Department of Commerce and Community Affairs shall
7 promulgate rules and regulations to carry out the provisions
8 of this Section, and to require that any business enterprise
9 that is granted a tax exemption pay the exempted tax to the
10 Department of Revenue if the business enterprise fails to
11 comply with the terms and conditions of the certification,
12 and pay all penalties and interest on that exempted tax as
13 determined by the Department of Revenue.
14 The certificate of eligibility for exemption shall be
15 presented by the business enterprise to its supplier when
16 making the initial purchase of machinery and equipment for
17 which an exemption is granted by Section 30-35 or Section
18 30-40 of this Code, or both, together with a certification by
19 the business enterprise that the machinery and equipment is
20 exempt from taxation under Section 30-35 or 30-40 of this
21 Code. The exempt status, if any, of each subsequent purchase
22 shall be indicated on the face of the purchase order.
23 Section 35-85. High impact service facility. High
24 impact service facility means a facility used primarily for
25 the sorting, handling and redistribution of single item
26 non-fungible parcels received from agents or employees of the
27 handler or shipper for processing at a common location and
28 redistribution to other employees or agents for delivery to
29 an ultimate destination on an item-by-item basis, and which:
30 (1) will make an investment by a business enterprise of
31 $150,000,000 dollars or more; (2) will cause the creation of
32 at least 1,000 jobs in an enterprise zone established
33 pursuant to the Illinois Enterprise Zone Act; and (3) is
-592- LRB9000671KDdvA
1 certified by the Department of Commerce and Community Affairs
2 as contractually obligated to meet the requirements specified
3 in divisions (1) and (2) of this paragraph within the time
4 period as specified by the certification. Any business
5 enterprise applying for the exemption stated in this Section
6 shall make application to the Department of Commerce and
7 Community Affairs in such form and providing such information
8 as may be prescribed by the Department of Commerce and
9 Community Affairs.
10 The Department of Commerce and Community Affairs shall
11 determine whether the facility meets the criteria prescribed
12 in this Section. If the Department of Commerce and Community
13 Affairs determines that such business enterprise meets the
14 criteria, it shall issue a certificate of eligibility for
15 exemption to the business enterprise in such form as is
16 prescribed by the Department of Revenue. The Department of
17 Commerce and Community Affairs shall act upon such
18 certification requests within 60 days after receipt of the
19 application, and shall file with the Department of Revenue a
20 copy of each certificate of eligibility for exemption.
21 The Department of Commerce and Community Affairs shall
22 have the power to promulgate rules and regulations to carry
23 out the provisions of this Section and to require that any
24 business enterprise that is granted a tax exemption repay the
25 exempted tax if the business enterprise fails to comply with
26 the terms and conditions of the certification.
27 The certificate of eligibility for exemption shall be
28 presented by the business enterprise to its supplier when
29 making the initial purchase of machinery and equipment for
30 which an exemption is granted by Section 30-25 of this Code,
31 together with a certification by the business enterprise that
32 such machinery and equipment is exempt from taxation under
33 Section 30-25 of this Code and by indicating the exempt
34 status of each subsequent purchase on the face of the
-593- LRB9000671KDdvA
1 purchase order.
2 The Department of Commerce and Community Affairs shall
3 determine the period during which such exemption from the
4 taxes imposed under this Code will remain in effect.
5 Section 35-90. Enterprise zones; building materials.
6 Each retailer whose place of business is within a county or
7 municipality which has established an enterprise zone
8 pursuant to the Illinois Enterprise Zone Act and who makes a
9 sale of building materials to be incorporated into real
10 estate in such enterprise zone by remodeling, rehabilitation
11 or new construction, may deduct receipts from such sales when
12 calculating the taxes imposed by this Code. The deduction
13 allowed by this Section for the sale of building materials
14 may be limited, to the extent authorized by ordinance,
15 adopted after February 18, 1992, by the municipality or
16 county that created the enterprise zone. The corporate
17 authorities of any municipality or county that adopts an
18 ordinance or resolution imposing or changing any limitation
19 on the enterprise zone exemption for building materials shall
20 transmit to the Department of Revenue on or not later than 5
21 days after publication, as provided by law, a certified copy
22 of the ordinance or resolution imposing or changing those
23 limitations, whereupon the Department of Revenue shall
24 proceed to administer and enforce those limitations effective
25 the first day of the second calendar month next following
26 date of receipt by the Department of the certified ordinance
27 or resolution.
28 Section 40-5. Information confidential; exceptions. All
29 information received by the Department from returns filed
30 under this Code, or from any investigation conducted under
31 this Code, shall be confidential, except for official
32 purposes, and any person who divulges any such information in
-594- LRB9000671KDdvA
1 any manner, except in accordance with a proper judicial order
2 or as otherwise provided by law, shall be guilty of a Class B
3 misdemeanor.
4 Nothing in this Code prevents the Director of Revenue
5 from publishing or making available to the public the names
6 and addresses of persons filing returns under this Code, or
7 reasonable statistics concerning the operation of the tax by
8 grouping the contents of returns so the information in any
9 individual return is not disclosed.
10 Nothing in this Code prevents the Director of Revenue
11 from divulging to the United States Government or the
12 government of any other state, or any village that does not
13 levy any real property taxes for village operations and that
14 receives more than 60% of its general corporate revenue from
15 taxes under Articles 10, 15, 20, and 25 of this Code, or any
16 officer or agency thereof, for exclusively official purposes,
17 information received by the Department in administering this
18 Code, provided that such other governmental agency agrees to
19 divulge requested tax information to the Department.
20 The Department's furnishing of information derived from a
21 taxpayer's return or from an investigation conducted under
22 this Code to the surety on a taxpayer's bond that has been
23 furnished to the Department under this Code, either to
24 provide notice to such surety of its potential liability
25 under the bond or, in order to support the Department's
26 demand for payment from such surety under the bond, is an
27 official purpose within the meaning of this Section.
28 The furnishing upon request of information obtained by
29 the Department from returns filed under this Code or
30 investigations conducted under this Code to the Illinois
31 Liquor Control Commission for official use is deemed to be an
32 official purpose within the meaning of this Section.
33 Notice to a surety of potential liability shall not be
34 given unless the taxpayer has first been notified, not less
-595- LRB9000671KDdvA
1 than 10 days prior thereto, of the Department's intent to so
2 notify the surety.
3 The furnishing upon request of the Auditor General, or
4 his authorized agents, for official use, of returns filed and
5 information related thereto under this Code is deemed to be
6 an official purpose within the meaning of this Section.
7 Where an appeal or a protest has been filed on behalf of
8 a taxpayer, the furnishing upon request of the attorney for
9 the taxpayer of returns filed by the taxpayer and information
10 related thereto under this Code is deemed to be an official
11 purpose within the meaning of this Section.
12 The furnishing of financial information to a home rule
13 unit that has imposed a tax similar to that imposed by this
14 Code pursuant to its home rule powers, or to any village that
15 does not levy any real property taxes for village operations
16 and that receives more than 60% of its general corporate
17 revenue from taxes under Articles 10, 15, 20, and 25 of this
18 Code, upon request of the Chief Executive thereof, is an
19 official purpose within the meaning of this Section,
20 provided the home rule unit or village that does not levy any
21 real property taxes for village operations and that receives
22 more than 60% of its general corporate revenue from taxes
23 under Articles 10, 15, 20, and 25 of this Code agrees in
24 writing to the requirements of this Section.
25 For a village that does not levy any real property taxes
26 for village operations and that receives more than 60% of its
27 general corporate revenue from taxes under Articles 10, 15,
28 20, and 25 of this Code, the officers eligible to receive
29 information from the Department of Revenue under this Section
30 are the village manager and the chief financial officer of
31 the village.
32 Information so provided shall be subject to all
33 confidentiality provisions of this Section. The written
34 agreement shall provide for reciprocity, limitations on
-596- LRB9000671KDdvA
1 access, disclosure, and procedures for requesting
2 information.
3 The Director may make available to any State agency,
4 including the Illinois Supreme Court, which licenses persons
5 to engage in any occupation, information that a person
6 licensed by such agency has failed to file returns under this
7 Code or pay the tax, penalty and interest shown therein, or
8 has failed to pay any final assessment of tax, penalty or
9 interest due under this Code. The Director may also make
10 available to the Secretary of State information that a
11 limited liability company, which has filed articles of
12 organization with the Secretary of State, or corporation
13 which has been issued a certificate of incorporation by the
14 Secretary of State has failed to file returns under this Code
15 or pay the tax, penalty and interest shown therein, or has
16 failed to pay any final assessment of tax, penalty or
17 interest due under this Code. An assessment is final when all
18 proceedings in court for review of such assessment have
19 terminated or the time for the taking thereof has expired
20 without such proceedings being instituted.
21 The Director shall make available for public inspection
22 in the Department's principal office and for publication, at
23 cost, administrative decisions issued on or after January 1,
24 1995. These decisions are to be made available in a manner so
25 that the following taxpayer information is not disclosed:
26 (1) The names, addresses, and identification
27 numbers of the taxpayer, related entities, and employees.
28 (2) At the sole discretion of the Director, trade
29 secrets or other confidential information identified as
30 such by the taxpayer, no later than 30 days after receipt
31 of an administrative decision, by such means as the
32 Department shall provide by rule.
33 The Director shall determine the appropriate extent of
34 the deletions allowed in paragraph (2). In the event the
-597- LRB9000671KDdvA
1 taxpayer does not submit deletions, the Director shall make
2 only the deletions specified in paragraph (1).
3 The Director shall make available for public inspection
4 and publication an administrative decision within 180 days
5 after the issuance of the administrative decision. The term
6 "administrative decision" has the same meaning as defined in
7 Section 3-101 of Article III of the Code of Civil Procedure.
8 Costs collected under this Section shall be paid into the Tax
9 Compliance and Administration Fund.
10 Section 45-5. Applicability of Article. The provisions
11 of this Article shall apply to the retailers' occupation tax,
12 the use tax, the service occupation tax, and the service use
13 tax. To the extent that any provision specifically applying
14 to the use tax, the service occupation tax, or the service
15 use tax is inconsistent with a general provision applying to
16 all of the taxes, the specific provision shall control.
17 Section 45-10. Records to be kept. Every person engaged
18 in the business of selling tangible personal property at
19 retail in this State shall keep records and books of all
20 sales of tangible personal property, together with invoices,
21 bills of lading, sales records, copies of bills of sale,
22 inventories prepared as of December 31 of each year or
23 otherwise annually as has been the custom in the specific
24 trade and other pertinent papers and documents. Every person
25 who is engaged in the business of selling tangible personal
26 property at retail in this State and who, in connection with
27 such business, also engages in other activities (including,
28 but not limited to, engaging in a service occupation) shall
29 keep such additional records and books of all such activities
30 as will accurately reflect the character and scope of such
31 activities and the amount of receipts realized therefrom. The
32 Department may adopt rules that establish requirements,
-598- LRB9000671KDdvA
1 including record forms and formats, for records required to
2 be kept and maintained by taxpayers. For purposes of this
3 Section, "records" means all data maintained by the taxpayer,
4 including data on paper, microfilm, microfiche or any type of
5 machine-sensible data compilation.
6 All books and records and other papers and documents
7 which are required by this Code to be kept shall be kept in
8 the English language and shall, at all times during business
9 hours of the day, be subject to inspection by the Department
10 or its duly authorized agents and employees.
11 To support deductions made on the tax return form, or
12 authorized under this Code, on account of receipts from
13 isolated or occasional sales of tangible personal property,
14 on account of receipts from sales of tangible personal
15 property for resale, on account of receipts from sales to
16 governmental bodies or other exempted types of purchasers, on
17 account of receipts from sales of tangible personal property
18 in interstate commerce, and on account of receipts from any
19 other kind of transaction that is not taxable under this
20 Code, entries in any books, records or other pertinent papers
21 or documents of the taxpayer in relation thereto shall be in
22 detail sufficient to show the name and address of the
23 taxpayer's customer in each such transaction, the character
24 of every such transaction, the date of every such
25 transaction, the amount of receipts realized from every such
26 transaction and such other information as may be necessary to
27 establish the non-taxable character of such transaction under
28 this Code.
29 Except in the case of a sale to a purchaser who will
30 always resell and deliver the property to his customers
31 outside Illinois, anyone claiming that he has made a
32 nontaxable sale for resale in some form as tangible personal
33 property shall also keep a record of the purchaser's
34 registration number or resale number with the Department.
-599- LRB9000671KDdvA
1 It shall be presumed that all sales of tangible personal
2 property are subject to tax under this Code until the
3 contrary is established, and the burden of proving that a
4 transaction is not taxable hereunder shall be upon the person
5 who would be required to remit the tax to the Department if
6 such transaction is taxable. In the course of any audit or
7 investigation or hearing by the Department with reference to
8 a given taxpayer, if the Department finds that the taxpayer
9 lacks documentary evidence needed to support the taxpayer's
10 claim to exemption from tax hereunder, the Department is
11 authorized to notify the taxpayer in writing to produce such
12 evidence, and the taxpayer shall have 60 days subject to the
13 right in the Department to extend this period either on
14 request for good cause shown or on its own motion from the
15 date when such notice is sent to the taxpayer by certified or
16 registered mail (or delivered to the taxpayer if the notice
17 is served personally) in which to obtain and produce such
18 evidence for the Department's inspection, failing which the
19 matter shall be closed, and the transaction shall be
20 conclusively presumed to be taxable hereunder.
21 Books and records and other papers reflecting gross
22 receipts received during any period with respect to which the
23 Department is authorized to issue notices of tax liability as
24 provided by Sections 50-145 and 50-150 of this Code shall be
25 preserved until the expiration of such period unless the
26 Department, in writing, shall authorize their destruction or
27 disposal prior to such expiration.
28 Section 50-5. Applicability of Sections 50-10 through
29 50-140. All of the provisions of Sections 50-10 through
30 50-140 of this Code shall apply to the retailers' occupation
31 tax, the use tax, the service occupation tax, and the service
32 use tax unless otherwise stated, except that the Sections
33 concerning the disposition by the Department of the money
-600- LRB9000671KDdvA
1 collected under this Code shall not apply to the service
2 occupation tax and the service use tax unless the Section
3 states that it applies to those taxes. To the extent that
4 any provision specifically applying to the use tax, the
5 service occupation tax, or the service use tax is
6 inconsistent with a general provision applying to all of the
7 taxes, the specific provision shall control.
8 Section 50-10. Monthly returns. Except as provided in
9 Sections 50-5 through 50-140, on or before the twentieth day
10 of each calendar month, every person engaged in the business
11 of selling tangible personal property at retail in this State
12 during the preceding calendar month shall file a return with
13 the Department, stating:
14 (1) the name of the seller;
15 (2) his residence address and the address of his
16 principal place of business and the address of the
17 principal place of business (if that is a different
18 address) from which he engages in the business of selling
19 tangible personal property at retail in this State;
20 (3) total amount of receipts received by him during
21 the preceding calendar month or quarter, as the case may
22 be, from sales of tangible personal property, and from
23 services furnished, by him during such preceding calendar
24 month or quarter;
25 (4) total amount received by him during the
26 preceding calendar month or quarter on charge and time
27 sales of tangible personal property, and from services
28 furnished, by him prior to the month or quarter for which
29 the return is filed;
30 (5) deductions allowed by law;
31 (6) gross receipts which were received by him
32 during the preceding calendar month or quarter and upon
33 the basis of which the tax is imposed;
-601- LRB9000671KDdvA
1 (7) the amount of credit provided in Section 10-30;
2 (8) the amount of tax due;
3 (9) the signature of the taxpayer; and
4 (10) such other reasonable information as the
5 Department may require.
6 Section 50-20. Service occupation tax returns. For
7 purposes of the service occupation tax, except as provided in
8 Sections 50-5 through 50-140, on or before the twentieth day
9 of each calendar month, each serviceman required or
10 authorized to collect the service occupation tax shall file a
11 return for the preceding calendar month in accordance with
12 reasonable rules and regulations to be promulgated by the
13 Department of Revenue. Such return shall be filed on a form
14 prescribed by the Department and shall contain such
15 information as the Department may reasonably require.
16 Section 50-25. Service use tax returns. For purposes of
17 the service use tax, except as provided in Sections 50-5
18 through 50-140, on or before the twentieth day of each
19 calendar month, each serviceman required or authorized to
20 collect the service use tax shall file a return for the
21 preceding calendar month in accordance with reasonable rules
22 and regulations to be promulgated by the Department. Such
23 return shall be filed on a form prescribed by the Department
24 and shall contain such information as the Department may
25 reasonably require.
26 Section 50-45. Signature on return for a corporation or
27 limited liability company.
28 (a) Where the seller is a corporation, the return filed
29 on behalf of such corporation shall be signed by the
30 president, vice-president, secretary or treasurer or by the
31 properly accredited agent of such corporation.
-602- LRB9000671KDdvA
1 (b) Where the seller is a limited liability company, the
2 return filed on behalf of the limited liability company shall
3 be signed by a manager, member, or properly accredited agent
4 of the limited liability company.
5 Section 50-50. Statement of prepaid tax. Each return
6 shall be accompanied by the statement of prepaid tax issued
7 pursuant to Section 10-35 for which credit is claimed.
8 Section 50-55. Rounding.
9 (a) If a total amount of less than $1 is payable,
10 refundable or creditable, such amount shall be disregarded if
11 it is less than 50 cents and shall be increased to $1 if it
12 is 50 cents or more.
13 (b) Any amount which is required to be shown or reported
14 on any return or other document under this Code shall, if
15 such amount is not a whole-dollar amount, be increased to the
16 nearest whole-dollar amount in any case where the fractional
17 part of a dollar is 50 cents or more, and decreased to the
18 nearest whole-dollar amount where the fractional part of a
19 dollar is less than 50 cents.
20 Section 50-85. Retailer selling only vehicles,
21 watercraft, aircraft, or trailers. Any retailer who sells
22 only motor vehicles, watercraft, aircraft, or trailers that
23 are required to be registered with an agency of this State,
24 so that all retailers' occupation tax liability is required
25 to be reported, and is reported, on such transaction
26 reporting returns and who is not otherwise required to file
27 monthly or quarterly returns, need not file monthly or
28 quarterly returns. However, those retailers shall be
29 required to file returns on an annual basis.
30 Section 50-95. Annual information return.
-603- LRB9000671KDdvA
1 (a) The Department may, upon separate written notice to
2 a taxpayer, require the taxpayer to prepare and file with the
3 Department on a form prescribed by the Department within not
4 less than 60 days after receipt of the notice an annual
5 information return for the tax year specified in the notice.
6 Such annual return to the Department shall include a
7 statement of gross receipts as shown by the taxpayer's last
8 federal income tax return. If the total receipts of the
9 business as reported in the federal income tax return do not
10 agree with the gross receipts reported to the Department of
11 Revenue for the same period, the taxpayer shall attach to his
12 annual return a schedule showing a reconciliation of the 2
13 amounts and the reasons for the difference. The taxpayer's
14 annual return to the Department shall also disclose the cost
15 of goods sold by the taxpayer during the year covered by such
16 return, opening and closing inventories of such goods for
17 such year, cost of goods used from stock or taken from stock
18 and given away by the taxpayer during such year, payroll
19 information of the taxpayer's business during such year and
20 any additional reasonable information which the Department
21 deems would be helpful in determining the accuracy of the
22 monthly, quarterly or annual returns filed by such taxpayer
23 as provided for in Sections 50-5 through 50-140.
24 (b) If the annual information return required by this
25 Section is not filed when and as required, the taxpayer shall
26 be liable as follows:
27 (i) Until January 1, 1994, the taxpayer shall be
28 liable for a penalty equal to 1/6 of 1% of the tax due
29 from such taxpayer under this Code during the period to
30 be covered by the annual return for each month or
31 fraction of a month until such return is filed as
32 required, the penalty to be assessed and collected in the
33 same manner as any other penalty provided for in this
34 Code.
-604- LRB9000671KDdvA
1 (ii) On and after January 1, 1994, the taxpayer
2 shall be liable for a penalty as described in Section 3-4
3 of the Uniform Penalty and Interest Act.
4 (c) The chief executive officer, proprietor, owner or
5 highest ranking manager shall sign the annual return to
6 certify the accuracy of the information contained therein.
7 Any person who willfully signs the annual return containing
8 false or inaccurate information shall be guilty of perjury
9 and punished accordingly. The annual return form prescribed
10 by the Department shall include a warning that the person
11 signing the return may be liable for perjury.
12 (d) The provisions of this Section concerning the filing
13 of an annual information return do not apply to a retailer or
14 serviceman who is not required to file an income tax return
15 with the United States government.
16 Section 50-130. Credit for motor fuel retailer. If a
17 retailer of motor fuel is entitled to a credit under Section
18 10-30 which exceeds the taxpayer's liability to the
19 Department under Article 10 for the month which the taxpayer
20 is filing a return, the Department shall issue the taxpayer a
21 credit memorandum for the excess.
22 Section 50-140. Fair reports.
23 (a) Any person who promotes, organizes, provides retail
24 selling space for concessionaires or other types of sellers
25 at the Illinois State Fair, DuQuoin State Fair, county fairs,
26 local fairs, art shows, flea markets and similar exhibitions
27 or events, including any transient merchant as defined by
28 Section 2 of the Transient Merchant Act of 1987, is required
29 to file a report with the Department providing the name of
30 the merchant's business, the name of the person or persons
31 engaged in merchant's business, the permanent address and
32 Illinois Retailers Occupation Tax Registration Number of the
-605- LRB9000671KDdvA
1 merchant, the dates and location of the event and other
2 reasonable information that the Department may require. The
3 report must be filed not later than the 20th day of the month
4 next following the month during which the event with retail
5 sales was held. Any person who fails to file a report
6 required by this Section commits a business offense and is
7 subject to a fine not to exceed $250.
8 (b) Any person engaged in the business of selling
9 tangible personal property at retail as a concessionaire or
10 other type of seller at the Illinois State Fair, county
11 fairs, art shows, flea markets and similar exhibitions or
12 events, or any transient merchants, as defined by Section 2
13 of the Transient Merchant Act of 1987, may be required to
14 make a daily report of the amount of such sales to the
15 Department and to make a daily payment of the full amount of
16 tax due. The Department shall impose this requirement when
17 it finds that there is a significant risk of loss of revenue
18 to the State at such an exhibition or event. Such a finding
19 shall be based on evidence that a substantial number of
20 concessionaires or other sellers who are not residents of
21 Illinois will be engaging in the business of selling tangible
22 personal property at retail at the exhibition or event, or
23 other evidence of a significant risk of loss of revenue to
24 the State. The Department shall notify concessionaires and
25 other sellers affected by the imposition of this requirement.
26 In the absence of notification by the Department, the
27 concessionaires and other sellers shall file their returns as
28 otherwise required in Sections 50-5 through 50-140.
29 Section 50-145. Examination and correction of return.
30 The provisions of this Section shall apply to the retailers'
31 occupation tax, the use tax, the service occupation tax, and
32 the service use tax, except that for purposes of the use tax
33 and the service occupation tax, the time limitation
-606- LRB9000671KDdvA
1 provisions shall run from the date when the tax is due rather
2 than from the date when gross receipts are received, and for
3 purposes of the service use tax, the time limitations
4 provisions shall run from the date when gross receipts are
5 received. As soon as practicable after any return is filed,
6 the Department shall examine such return and shall, if
7 necessary, correct such return according to its best judgment
8 and information. If the correction of a return results in an
9 amount of tax that is understated on the taxpayer's return
10 due to a mathematical error, the Department shall notify the
11 taxpayer that the amount of tax in excess of that shown on
12 the return is due and has been assessed. The term
13 "mathematical error" means arithmetic errors or incorrect
14 computations on the return or supporting schedules. No such
15 notice of additional tax due shall be issued on and after
16 each July 1 and January 1 covering gross receipts received
17 during any month or period of time more than 3 years prior to
18 such July 1 and January 1, respectively. Such notice of
19 additional tax due shall not be considered a notice of tax
20 liability nor shall the taxpayer have any right of protest.
21 In the event that the return is corrected for any reason
22 other than a mathematical error, any return so corrected by
23 the Department shall be prima facie correct and shall be
24 prima facie evidence of the correctness of the amount of tax
25 due, as shown therein. In correcting transaction by
26 transaction reporting returns provided for in Sections 50-5
27 through 50-140 of this Code, it shall be permissible for the
28 Department to show a single corrected return figure for any
29 given period of a calendar month instead of having to correct
30 each transaction by transaction return form individually and
31 having to show a corrected return figure for each of such
32 transaction by transaction return forms. In making a
33 correction of transaction by transaction, monthly or
34 quarterly returns covering a period of 6 months or more, it
-607- LRB9000671KDdvA
1 shall be permissible for the Department to show a single
2 corrected return figure for any given 6-month period.
3 Instead of requiring the person filing such return to
4 file an amended return, the Department may simply notify him
5 of the correction or corrections it has made.
6 Proof of such correction by the Department may be made at
7 any hearing before the Department or in any legal proceeding
8 by a reproduced copy or computer print-out of the
9 Department's record relating thereto in the name of the
10 Department under the certificate of the Director of Revenue.
11 If reproduced copies of the Department's records are offered
12 as proof of such correction, the Director must certify that
13 those copies are true and exact copies of records on file
14 with the Department. If computer print-outs of the
15 Department's records are offered as proof of such correction,
16 the Director must certify that those computer print-outs are
17 true and exact representations of records properly entered
18 into standard electronic computing equipment, in the regular
19 course of the Department's business, at or reasonably near
20 the time of the occurrence of the facts recorded, from
21 trustworthy and reliable information. Such certified
22 reproduced copy or certified computer print-out shall without
23 further proof, be admitted into evidence before the
24 Department or in any legal proceeding and shall be prima
25 facie proof of the correctness of the amount of tax due, as
26 shown therein.
27 If the tax computed upon the basis of the gross receipts
28 as fixed by the Department is greater than the amount of tax
29 due under the return or returns as filed, the Department
30 shall (or if the tax or any part thereof that is admitted to
31 be due by a return or returns, whether filed on time or not,
32 is not paid, the Department may) issue the taxpayer a notice
33 of tax liability for the amount of tax claimed by the
34 Department to be due, together with a penalty in an amount
-608- LRB9000671KDdvA
1 determined in accordance with Section 3-3 of the Uniform
2 Penalty and Interest Act. Provided, that if the incorrectness
3 of any return or returns as determined by the Department is
4 due to negligence or fraud, the penalty shall be in an amount
5 determined in accordance with Section 3-5 or Section 3-6 of
6 the Uniform Penalty and Interest Act, as the case may be. If
7 the notice of tax liability is not based on a correction of
8 the taxpayer's return or returns, but is based on the
9 taxpayer's failure to pay all or a part of the tax admitted
10 by his return or returns (whether filed on time or not) to be
11 due, such notice of tax liability shall be prima facie
12 correct and shall be prima facie evidence of the correctness
13 of the amount of tax due, as shown therein.
14 Proof of such notice of tax liability by the Department
15 may be made at any hearing before the Department or in any
16 legal proceeding by a reproduced copy of the Department's
17 record relating thereto in the name of the Department under
18 the certificate of the Director of Revenue. Such reproduced
19 copy shall without further proof, be admitted into evidence
20 before the Department or in any legal proceeding and shall be
21 prima facie proof of the correctness of the amount of tax
22 due, as shown therein.
23 If the person filing any return dies or becomes a person
24 under legal disability at any time before the Department
25 issues its notice of tax liability, such notice shall be
26 issued to the administrator, executor or other legal
27 representative, as such, of such person.
28 Except in case of a fraudulent return, or in the case of
29 an amended return (where a notice of tax liability may be
30 issued on or after each January 1 and July 1 for an amended
31 return filed not more than 3 years prior to such January 1 or
32 July 1, respectively), no notice of tax liability shall be
33 issued on and after each January 1 and July 1 covering gross
34 receipts received during any month or period of time more
-609- LRB9000671KDdvA
1 than 3 years prior to such January 1 and July 1,
2 respectively. If, before the expiration of the time
3 prescribed in this Section for the issuance of a notice of
4 tax liability, both the Department and the taxpayer have
5 consented in writing to its issuance after such time, such
6 notice may be issued at any time prior to the expiration of
7 the period agreed upon. The period so agreed upon may be
8 extended by subsequent agreements in writing made before the
9 expiration of the period previously agreed upon. The
10 foregoing limitations upon the issuance of a notice of tax
11 liability shall not apply to the issuance of a notice of tax
12 liability with respect to any period of time prior thereto in
13 cases where the Department has, within the period of
14 limitation then provided, notified the person making the
15 return of a notice of tax liability even though such return,
16 with which the tax that was shown by such return to be due
17 was paid when the return was filed, had not been corrected by
18 the Department in the manner required herein prior to the
19 issuance of such notice, but in no case shall the amount of
20 any such notice of tax liability for any period otherwise
21 barred by this Code exceed for such period the amount shown
22 in the notice of tax liability theretofore issued.
23 If, when a tax or penalty under this Code becomes due and
24 payable, the person alleged to be liable therefor is out of
25 the State, the notice of tax liability may be issued within
26 the times herein limited after his coming into or return to
27 the State; and if, after the tax or penalty under this Code
28 becomes due and payable, the person alleged to be liable
29 therefor departs from and remains out of the State, the time
30 of his or her absence is no part of the time limited for the
31 issuance of the notice of tax liability; but the foregoing
32 provisions concerning absence from the State shall not apply
33 to any case in which, at the time when a tax or penalty
34 becomes due under this Code, the person allegedly liable
-610- LRB9000671KDdvA
1 therefor is not a resident of this State.
2 The time limitation period on the Department's right to
3 issue a notice of tax liability shall not run during any
4 period of time in which the order of any court has the effect
5 of enjoining or restraining the Department from issuing the
6 notice of tax liability.
7 If such person or legal representative shall within 60
8 days after such notice of tax liability file a protest to
9 said notice of tax liability and request a hearing thereon,
10 the Department shall give notice to such person or legal
11 representative of the time and place fixed for such hearing
12 and shall hold a hearing in conformity with the provisions of
13 this Code, and pursuant thereto shall issue to such person or
14 legal representative a final assessment for the amount found
15 to be due as a result of such hearing.
16 If a protest to the notice of tax liability and a request
17 for a hearing thereon is not filed within 60 days after such
18 notice, such notice of tax liability shall become final
19 without the necessity of a final assessment being issued and
20 shall be deemed to be a final assessment.
21 After the issuance of a final assessment, or a notice of
22 tax liability which becomes final without the necessity of
23 actually issuing a final assessment as hereinbefore provided,
24 the Department, at any time before such assessment is reduced
25 to judgment, may (subject to rules of the Department) grant a
26 rehearing (or grant departmental review and hold an original
27 hearing if no previous hearing in the matter has been held)
28 upon the application of the person aggrieved. Pursuant to
29 such hearing or rehearing, the Department shall issue a
30 revised final assessment to such person or his legal
31 representative for the amount found to be due as a result of
32 such hearing or rehearing.
33 Section 50-150. Failure to make return.
-611- LRB9000671KDdvA
1 The provisions of this Section shall apply to the
2 retailers' occupation tax, the use tax, the service
3 occupation tax, and the service use tax, except that for
4 purposes of the use tax, the service occupation tax, and the
5 service use tax, the time limitation provisions on the
6 issuance of notices of tax liability shall run from the date
7 when the tax is due rather than from the date when gross
8 receipts are received, and for purposes of the use tax and
9 the service use tax, in the case of a failure to file a
10 return required by this Code, no notice of tax liability
11 shall be issued on and after each July 1 and January 1
12 covering tax due with that return during any month or period
13 more than 6 years before that July 1 or January 1,
14 respectively. In case any person engaged in the business of
15 selling tangible personal property at retail fails to file a
16 return when and as herein required, but thereafter, prior to
17 the Department's issuance of a notice of tax liability under
18 this Section, files a return and pays the tax, he shall also
19 pay a penalty in an amount determined in accordance with
20 Section 3-3 of the Uniform Penalty and Interest Act.
21 In case any person engaged in the business of selling
22 tangible personal property at retail files the return at the
23 time required by this Code but fails to pay the tax, or any
24 part thereof, when due, a penalty in an amount determined in
25 accordance with Section 3-3 of the Uniform Penalty and
26 Interest Act shall be added thereto.
27 In case any person engaged in the business of selling
28 tangible personal property at retail fails to file a return
29 when and as herein required, but thereafter, prior to the
30 Department's issuance of a notice of tax liability under this
31 Section, files a return but fails to pay the entire tax, a
32 penalty in an amount determined in accordance with Section
33 3-3 of the Uniform Penalty and Interest Act shall be added
34 thereto.
-612- LRB9000671KDdvA
1 In case any person engaged in the business of selling
2 tangible personal property at retail fails to file a return,
3 the Department shall determine the amount of tax due from him
4 according to its best judgment and information, which amount
5 so fixed by the Department shall be prima facie correct and
6 shall be prima facie evidence of the correctness of the
7 amount of tax due, as shown in such determination. In making
8 any such determination of tax due, it shall be permissible
9 for the Department to show a figure that represents the tax
10 due for any given period of 6 months instead of showing the
11 amount of tax due for each month separately. Proof of such
12 determination by the Department may be made at any hearing
13 before the Department or in any legal proceeding by a
14 reproduced copy or computer print-out of the Department's
15 record relating thereto in the name of the Department under
16 the certificate of the Director of Revenue. If reproduced
17 copies of the Department's records are offered as proof of
18 such determination, the Director must certify that those
19 copies are true and exact copies of records on file with the
20 Department. If computer print-outs of the Department's
21 records are offered as proof of such determination, the
22 Director must certify that those computer print-outs are true
23 and exact representations of records properly entered into
24 standard electronic computing equipment, in the regular
25 course of the Department's business, at or reasonably near
26 the time of the occurrence of the facts recorded, from
27 trustworthy and reliable information. Such certified
28 reproduced copy or certified computer print-out shall,
29 without further proof, be admitted into evidence before the
30 Department or in any legal proceeding and shall be prima
31 facie proof of the correctness of the amount of tax due, as
32 shown therein. The Department shall issue the taxpayer a
33 notice of tax liability for the amount of tax claimed by the
34 Department to be due, together with a penalty of 30% thereof.
-613- LRB9000671KDdvA
1 However, where the failure to file any tax return
2 required under this Code on the date prescribed therefor
3 (including any extensions thereof), is shown to be
4 unintentional and nonfraudulent and has not occurred in the 2
5 years immediately preceding the failure to file on the
6 prescribed date or is due to other reasonable cause the
7 penalties imposed by this Code shall not apply.
8 If such person or the legal representative of such person
9 files, within 60 days after such notice, a protest to such
10 notice of tax liability and requests a hearing thereon, the
11 Department shall give notice to such person or the legal
12 representative of such person of the time and place fixed for
13 such hearing, and shall hold a hearing in conformity with the
14 provisions of this Code, and pursuant thereto shall issue a
15 final assessment to such person or to the legal
16 representative of such person for the amount found to be due
17 as a result of such hearing.
18 If a protest to the notice of tax liability and a request
19 for a hearing thereon is not filed within 60 days after such
20 notice, such notice of tax liability shall become final
21 without the necessity of a final assessment being issued and
22 shall be deemed to be a final assessment.
23 After the issuance of a final assessment, or a notice of
24 tax liability which becomes final without the necessity of
25 actually issuing a final assessment as hereinbefore provided,
26 the Department, at any time before such assessment is reduced
27 to judgment, may (subject to rules of the Department) grant a
28 rehearing (or grant departmental review and hold an original
29 hearing if no previous hearing in the matter has been held)
30 upon the application of the person aggrieved. Pursuant to
31 such hearing or rehearing, the Department shall issue a
32 revised final assessment to such person or his legal
33 representative for the amount found to be due as a result of
34 such hearing or rehearing.
-614- LRB9000671KDdvA
1 Except in case of failure to file a return, or with the
2 consent of the person to whom the notice of tax liability is
3 to be issued, no notice of tax liability shall be issued on
4 and after each July 1 and January 1 covering gross receipts
5 received during any month or period of time more than 3 years
6 prior to such July 1 and January 1, respectively, except that
7 if a return is not filed at the required time, a notice of
8 tax liability may be issued not later than 3 years after the
9 time the return is filed. The foregoing limitations upon the
10 issuance of a notice of tax liability shall not apply to the
11 issuance of any such notice with respect to any period of
12 time prior thereto in cases where the Department has, within
13 the period of limitation then provided, notified a person of
14 the amount of tax computed even though the Department had not
15 determined the amount of tax due from such person in the
16 manner required herein prior to the issuance of such notice,
17 but in no case shall the amount of any such notice of tax
18 liability for any period otherwise barred by this Code exceed
19 for such period the amount shown in the notice theretofore
20 issued.
21 If, when a tax or penalty under this Code becomes due and
22 payable, the person alleged to be liable therefor is out of
23 the State, the notice of tax liability may be issued within
24 the times herein limited after his or her coming into or
25 return to the State; and if, after the tax or penalty under
26 this Code becomes due and payable, the person alleged to be
27 liable therefor departs from and remains out of the State,
28 the time of his or her absence is no part of the time limited
29 for the issuance of the notice of tax liability; but the
30 foregoing provisions concerning absence from the State shall
31 not apply to any case in which, at the time when a tax or
32 penalty becomes due under this Code, the person allegedly
33 liable therefor is not a resident of this State.
34 The time limitation period on the Department's right to
-615- LRB9000671KDdvA
1 issue a notice of tax liability shall not run during any
2 period of time in which the order of any court has the effect
3 of enjoining or restraining the Department from issuing the
4 notice of tax liability.
5 In case of failure to pay the tax, or any portion
6 thereof, or any penalty provided for in this Code, or
7 interest, when due, the Department may bring suit to recover
8 the amount of such tax, or portion thereof, or penalty or
9 interest; or, if the taxpayer has died or become a person
10 under legal disability, may file a claim therefor against his
11 estate; provided that no such suit with respect to any tax,
12 or portion thereof, or penalty, or interest shall be
13 instituted more than 2 years after the date any proceedings
14 in court for review thereof have terminated or the time for
15 the taking thereof has expired without such proceedings being
16 instituted, except with the consent of the person from whom
17 such tax or penalty or interest is due; nor, except with such
18 consent, shall such suit be instituted more than 2 years
19 after the date any return is filed with the Department in
20 cases where the return constitutes the basis for the suit for
21 unpaid tax, or portion thereof, or penalty provided for in
22 this Code, or interest: provided that the time limitation
23 period on the Department's right to bring any such suit shall
24 not run during any period of time in which the order of any
25 court has the effect of enjoining or restraining the
26 Department from bringing such suit.
27 After the expiration of the period within which the
28 person assessed may file an action for judicial review under
29 the Administrative Review Law without such an action being
30 filed, a certified copy of the final assessment or revised
31 final assessment of the Department may be filed with the
32 Circuit Court of the county in which the taxpayer has his
33 principal place of business, or of Sangamon County in those
34 cases in which the taxpayer does not have his principal place
-616- LRB9000671KDdvA
1 of business in this State. The certified copy of the final
2 assessment or revised final assessment shall be accompanied
3 by a certification which recites facts that are sufficient to
4 show that the Department complied with the jurisdictional
5 requirements of the Code in arriving at its final assessment
6 or its revised final assessment and that the taxpayer had his
7 opportunity for an administrative hearing and for judicial
8 review, whether he availed himself or herself of either or
9 both of these opportunities or not. If the court is satisfied
10 that the Department complied with the jurisdictional
11 requirements of the Code in arriving at its final assessment
12 or its revised final assessment and that the taxpayer had his
13 opportunity for an administrative hearing and for judicial
14 review, whether he availed himself of either or both of these
15 opportunities or not, the court shall render judgment in
16 favor of the Department and against the taxpayer for the
17 amount shown to be due by the final assessment or the revised
18 final assessment, plus any interest which may be due, and
19 such judgment shall be entered in the judgment docket of the
20 court. Such judgment shall bear the rate of interest as set
21 by the Uniform Penalty and Interest Act, but otherwise shall
22 have the same effect as other judgments. The judgment may be
23 enforced, and all laws applicable to sales for the
24 enforcement of a judgment shall be applicable to sales made
25 under such judgments. The Department shall file the certified
26 copy of its assessment, as herein provided, with the Circuit
27 Court within 2 years after such assessment becomes final
28 except when the taxpayer consents in writing to an extension
29 of such filing period, and except that the time limitation
30 period on the Department's right to file the certified copy
31 of its assessment with the Circuit Court shall not run during
32 any period of time in which the order of any court has the
33 effect of enjoining or restraining the Department from filing
34 such certified copy of its assessment with the Circuit Court.
-617- LRB9000671KDdvA
1 If, when the cause of action for a proceeding in court
2 accrues against a person, he or she is out of the State, the
3 action may be commenced within the times herein limited,
4 after his or her coming into or return to the State; and if,
5 after the cause of action accrues, he or she departs from and
6 remains out of the State, the time of his or her absence is
7 no part of the time limited for the commencement of the
8 action; but the foregoing provisions concerning absence from
9 the State shall not apply to any case in which, at the time
10 the cause of action accrues, the party against whom the cause
11 of action accrues is not a resident of this State. The time
12 within which a court action is to be commenced by the
13 Department hereunder shall not run from the date the taxpayer
14 files a petition in bankruptcy under the Federal Bankruptcy
15 Act until 30 days after notice of termination or expiration
16 of the automatic stay imposed by the Federal Bankruptcy Act.
17 No claim shall be filed against the estate of any
18 deceased person or any person under legal disability for any
19 tax or penalty or part of either, or interest, except in the
20 manner prescribed and within the time limited by the Probate
21 Act of 1975.
22 The collection of tax or penalty or interest by any means
23 provided for herein shall not be a bar to any prosecution
24 under this Code.
25 In addition to any penalty provided for in this Code, any
26 amount of tax which is not paid when due shall bear interest
27 at the rate and in the manner specified in Sections 3-2 and
28 3-9 of the Uniform Penalty and Interest Act from the date
29 when such tax becomes past due until such tax is paid or a
30 judgment therefor is obtained by the Department. If the time
31 for making or completing an audit of a taxpayer's books and
32 records is extended with the taxpayer's consent, at the
33 request of and for the convenience of the Department, beyond
34 the date on which the statute of limitations upon the
-618- LRB9000671KDdvA
1 issuance of a notice of tax liability by the Department
2 otherwise would run, no interest shall accrue during the
3 period of such extension or until a Notice of Tax Liability
4 is issued, whichever occurs first.
5 In addition to any other remedy provided by this Code,
6 and regardless of whether the Department is making or intends
7 to make use of such other remedy, where a corporation or
8 limited liability company registered under this Code violates
9 the provisions of this Code or of any rule or regulation
10 promulgated thereunder, the Department may give notice to the
11 Attorney General of the identity of such a corporation or
12 limited liability company and of the violations committed by
13 such a corporation or limited liability company, for such
14 action as is not already provided for by this Code and as the
15 Attorney General may deem appropriate.
16 If the Department determines that an amount of tax or
17 penalty or interest was incorrectly assessed, whether as the
18 result of a mistake of fact or an error of law, the
19 Department shall waive the amount of tax or penalty or
20 interest that accrued due to the incorrect assessment.
21 Section 50-160. Manufacturer's Purchase Credit.
22 (a) For purposes of the retailers' occupation tax, a
23 retailer may accept a Manufacturer's Purchase Credit
24 certification from a purchaser in satisfaction of use tax as
25 provided in Section 30-230 if the purchaser provides the
26 appropriate documentation as required by Section 30-230. A
27 Manufacturer's Purchase Credit certification, accepted by a
28 retailer as provided in Section 30-230, may be used by that
29 retailer to satisfy retailers' occupation tax liability in
30 the amount claimed in the certification, not to exceed 6.25%
31 of the receipts subject to tax from a qualifying purchase.
32 (b) For purposes of the service occupation tax, a
33 serviceman may accept a Manufacturer's Purchase Credit
-619- LRB9000671KDdvA
1 certification from a purchaser in satisfaction of service use
2 tax as provided in Section 30-230 if the purchaser provides
3 the appropriate documentation as required by Section 30-230.
4 A Manufacturer's Purchase Credit certification, accepted by a
5 serviceman as provided in Section 30-230 may be used by that
6 serviceman to satisfy service occupation tax liability in the
7 amount claimed in the certification, not to exceed 6.25% of
8 the receipts subject to tax from a qualifying purchase.
9 Section 55-5. Erroneous payment; credit or refund;
10 retailers' occupation tax. If it appears, after claim
11 therefor filed with the Department, that an amount of tax or
12 penalty or interest has been paid which was not due under
13 Article 10, whether as the result of a mistake of fact or an
14 error of law, except as hereinafter provided, then the
15 Department shall issue a credit memorandum or refund to the
16 person who made the erroneous payment or, if that person died
17 or became a person under legal disability, to his or her
18 legal representative, as such. For purposes of this Section,
19 the tax is deemed to be erroneously paid by a retailer when
20 the manufacturer of a motor vehicle sold by the retailer
21 accepts the return of that automobile and refunds to the
22 purchaser the selling price of that vehicle as provided in
23 the New Vehicle Buyer Protection Act. When a motor vehicle is
24 returned for a refund of the purchase price under the New
25 Vehicle Buyer Protection Act, the Department shall issue a
26 credit memorandum or a refund for the amount of tax paid by
27 the retailer under Article 10 attributable to the initial
28 sale of that vehicle. Claims submitted by the retailer are
29 subject to the same restrictions and procedures provided for
30 in this Code. If it is determined that the Department should
31 issue a credit memorandum or refund, the Department may first
32 apply the amount thereof against any tax or penalty or
33 interest due or to become due under this Code, the Municipal
-620- LRB9000671KDdvA
1 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
2 Municipal Service Occupation Tax Act, the County Retailers'
3 Occupation Tax Act, the County Supplementary Retailers'
4 Occupation Tax Act, the County Service Occupation Tax Act,
5 the County Supplementary Service Occupation Tax Act, the
6 County Use Tax Act, the County Supplementary Use Tax Act,
7 Section 4 of the Water Commission Act of 1985, subsections
8 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
9 District Act, or subsections (e), (f) and (g) of Section 4.03
10 of the Regional Transportation Authority Act, from the person
11 who made the erroneous payment. If no tax or penalty or
12 interest is due and no proceeding is pending to determine
13 whether such person is indebted to the Department for tax or
14 penalty or interest, the credit memorandum or refund shall be
15 issued to the claimant; or (in the case of a credit
16 memorandum) the credit memorandum may be assigned and set
17 over by the lawful holder thereof, subject to reasonable
18 rules of the Department, to any other person who is subject
19 to this Code, the Municipal Retailers' Occupation Tax Act,
20 the Municipal Use Tax Act, the Municipal Service Occupation
21 Tax Act, the County Retailers' Occupation Tax Act, the County
22 Supplementary Retailers' Occupation Tax Act, the County
23 Service Occupation Tax Act, the County Supplementary Service
24 Occupation Tax Act, the County Use Tax Act, the County
25 Supplementary Use Tax Act, Section 4 of the Water Commission
26 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
27 the Local Mass Transit District Act, or subsections (e), (f)
28 and (g) of Section 4.03 of the Regional Transportation
29 Authority Act, and the amount thereof applied by the
30 Department against any tax or penalty or interest due or to
31 become due under this Code, the Municipal Retailers'
32 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
33 Service Occupation Tax Act, the County Retailers' Occupation
34 Tax Act, the County Supplementary Retailers' Occupation Tax
-621- LRB9000671KDdvA
1 Act, the County Service Occupation Tax Act, the County
2 Supplementary Service Occupation Tax Act, the County Use Tax
3 Act, the County Supplementary Use Tax Act, Section 4 of the
4 Water Commission Act of 1985, subsections (b), (c) and (d) of
5 Section 5.01 of the Local Mass Transit District Act, or
6 subsections (e), (f) and (g) of Section 4.03 of the Regional
7 Transportation Authority Act, from such assignee.
8 No claim shall be allowed for any amount paid to the
9 Department, whether paid voluntarily or involuntarily, if
10 paid in total or partial liquidation of an assessment which
11 had become final before the claim for credit or refund to
12 recover the amount so paid is filed with the Department, or
13 if paid in total or partial liquidation of a judgment or
14 order of court.
15 No credit may be allowed or refund made for any amount
16 paid by or collected from any claimant unless it appears (a)
17 that the claimant bore the burden of such amount and has not
18 been relieved thereof nor reimbursed therefor and has not
19 shifted such burden directly or indirectly through inclusion
20 of such amount in the price of the tangible personal property
21 sold by him or her or in any manner whatsoever; and that no
22 understanding or agreement, written or oral, exists whereby
23 he or she or his or her legal representative may be relieved
24 of the burden of such amount, be reimbursed therefor or may
25 shift the burden thereof; or (b) that he or she or his or her
26 legal representative has repaid unconditionally such amount
27 to his or her vendee (1) who bore the burden thereof and has
28 not shifted such burden directly or indirectly, in any manner
29 whatsoever; (2) who, if he or she has shifted such burden,
30 has repaid unconditionally such amount to his own vendee; and
31 (3) who is not entitled to receive any reimbursement therefor
32 from any other source than from his or her vendor, nor to be
33 relieved of such burden in any manner whatsoever. No credit
34 may be allowed or refund made for any amount paid by or
-622- LRB9000671KDdvA
1 collected from any claimant unless it appears that the
2 claimant has unconditionally repaid, to the purchaser, any
3 amount collected from the purchaser and retained by the
4 claimant with respect to the same transaction under Article
5 15.
6 If a retailer who has failed to pay retailers' occupation
7 tax on gross receipts from retail sales is required by the
8 Department to pay such tax, such retailer, without filing any
9 formal claim with the Department, shall be allowed to take
10 credit against such retailers' occupation tax liability to
11 the extent, if any, to which such retailer has paid an amount
12 equivalent to retailers' occupation tax or has paid use tax
13 in error to his or her vendor or vendors of the same tangible
14 personal property which such retailer bought for resale and
15 did not first use before selling it, and no penalty or
16 interest shall be charged to such retailer on the amount of
17 such credit. However, when such credit is allowed to the
18 retailer by the Department, the vendor is precluded from
19 refunding any of that tax to the retailer and filing a claim
20 for credit or refund with respect thereto with the
21 Department. The provisions of this amendatory Act shall be
22 applied retroactively, regardless of the date of the
23 transaction.
24 Section 55-15. Credit or refund; payment and interest.
25 Any credit or refund that is allowed under Section 55-5 or
26 55-10 shall bear interest at the rate and in the manner
27 specified in the Uniform Penalty and Interest Act.
28 In case the Department determines that the claimant is
29 entitled to a refund, such refund shall be made only from
30 such appropriation as may be available for that purpose. If
31 it appears unlikely that the amount appropriated would permit
32 everyone having a claim allowed during the period covered by
33 such appropriation to elect to receive a cash refund, the
-623- LRB9000671KDdvA
1 Department, by rule or regulation, shall provide for the
2 payment of refunds in hardship cases and shall define what
3 types of cases qualify as hardship cases.
4 Section 55-20. Claims for credit or refund.
5 (a) For purposes of the retailers' occupation tax,
6 claims for credit or refund shall be prepared and filed upon
7 forms provided by the Department. Each claim shall state: (1)
8 the name and principal business address of the claimant; (2)
9 the period covered by the claim; (3) the total amount of
10 credit or refund claimed, giving in detail the net amount of
11 taxable receipts reported each month or other return period
12 used by the claimant as the basis for filing returns in the
13 period covered by the claim; (4) the total amount of tax paid
14 for each return period; (5) receipts upon which tax liability
15 is admitted for each return period; (6) the amount of
16 receipts on which credit or refund is claimed for each return
17 period; (7) the tax due for each return period as corrected;
18 (8) the amount of credit or refund claimed for each return
19 period; (9) reason or reasons why the amount, for which the
20 claim is filed, is alleged to have been paid in error; (10) a
21 list of the evidence (documentary or otherwise) which the
22 claimant has available to establish his compliance with
23 Section 55-5 as to bearing the burden of the tax for which he
24 seeks credit or refund; (11) payments or parts thereof (if
25 any) included in the claim and paid by the claimant under
26 protest; (12) sufficient information to identify any suit
27 which involves this Code, and to which the claimant is a
28 party; and (13) such other information as the Department may
29 reasonably require. Where the claimant is a corporation or
30 limited liability company, the claim filed on behalf of such
31 corporation or limited liability company shall be signed by
32 the president, vice-president, secretary or treasurer, by the
33 properly accredited agent of such corporation, or by a
-624- LRB9000671KDdvA
1 manager, member, or properly accredited agent of the limited
2 liability company.
3 (b) For purposes of the use tax, the service occupation
4 tax, and the service use tax, any claim filed under Section
5 55-10 shall be filed upon a form prescribed and furnished by
6 the Department. The claim shall be signed by the claimant
7 (or by the claimant's legal representative if the claimant
8 shall have died or become a person under legal disability),
9 or by a duly authorized agent of the claimant or his or her
10 legal representative.
11 (c) A claim for credit or refund shall be considered to
12 have been filed with the Department on the date upon which it
13 is received by the Department. Upon receipt of any claim for
14 credit or refund filed under this Code, any officer or
15 employee of the Department, authorized in writing by the
16 Director of Revenue to acknowledge receipt of such claims on
17 behalf of the Department, shall execute on behalf of the
18 Department, and shall deliver or mail to the claimant or his
19 or her duly authorized agent, a written receipt,
20 acknowledging that the claim has been filed with the
21 Department, describing the claim in sufficient detail to
22 identify it and stating the date upon which the claim was
23 received by the Department. Such written receipt shall be
24 prima facie evidence that the Department received the claim
25 described in such receipt and shall be prima facie evidence
26 of the date when such claim was received by the Department.
27 In the absence of such a written receipt, the records of the
28 Department as to when the claim was received by the
29 Department, or as to whether or not the claim was received at
30 all by the Department, shall be deemed to be prima facie
31 correct upon these questions in the event of any dispute
32 between the claimant (or his legal representative) and the
33 Department concerning these questions.
-625- LRB9000671KDdvA
1 Section 65-5. Tax lien. The Department shall have a lien
2 for the taxes herein imposed or any portion thereof, or for
3 any penalty provided for in this Code, or for any amount of
4 interest which may be due as provided for in Section 50-150
5 of this Code, upon all the real and personal property of any
6 person to whom a final assessment or revised final assessment
7 has been issued as provided in this Code, or whenever a
8 return is filed without payment of the tax or penalty shown
9 therein to be due, including all such property of such
10 persons acquired after receipt of such assessment or filing
11 of such return.
12 However, where the lien arises because of the issuance of
13 a final assessment or revised final assessment by the
14 Department, such lien shall not attach and the notice
15 hereinafter referred to in this Section shall not be filed
16 until all proceedings in court for review of such final
17 assessment or revised final assessment have terminated or the
18 time for the taking thereof has expired without such
19 proceedings being instituted.
20 Upon the granting of a rehearing or departmental review
21 pursuant to Section 50-145 or Section 50-150 of this Code
22 after a lien has attached, such lien shall remain in full
23 force except to the extent to which the final assessment may
24 be reduced by a revised final assessment following such
25 rehearing or review.
26 The lien created by the issuance of a final assessment
27 shall terminate unless a notice of lien is filed, as provided
28 in Section 65-10, within 3 years from the date all
29 proceedings in court for the review of such final assessment
30 have terminated or the time for the taking thereof has
31 expired without such proceedings being instituted, or (in the
32 case of a revised final assessment issued pursuant to a
33 rehearing or departmental review) within 3 years from the
34 date all proceedings in court for the review of such revised
-626- LRB9000671KDdvA
1 final assessment have terminated or the time for the taking
2 thereof has expired without such proceedings being
3 instituted; and where the lien results from the filing of a
4 return without payment of the tax or penalty shown therein to
5 be due, the lien shall terminate unless a notice of lien is
6 filed, as provided in Section 65-10 hereof, within 3 years
7 from the date when such return is filed with the Department:
8 provided that the time limitation period on the Department's
9 right to file a notice of lien shall not run during any
10 period of time in which the order of any court has the effect
11 of enjoining or restraining the Department from filing such
12 notice of lien.
13 If the Department finds that a taxpayer is about to
14 depart from the State, or to conceal himself or his property,
15 or to do any other act tending to prejudice or to render
16 wholly or partly ineffectual proceedings to collect such tax
17 unless such proceedings are brought without delay, or if the
18 Department finds that the collection of the amount due from
19 any taxpayer will be jeopardized by delay, the Department
20 shall give the taxpayer notice of such findings and shall
21 make demand for immediate return and payment of such tax,
22 whereupon such tax shall become immediately due and payable.
23 If the taxpayer, within 5 days after such notice (or within
24 such extension of time as the Department may grant), does not
25 comply with such notice or show to the Department that the
26 findings in such notice are erroneous, the Department may
27 file a notice of jeopardy assessment lien in the office of
28 the recorder of the county in which any property of the
29 taxpayer may be located and shall notify the taxpayer of such
30 filing. Such jeopardy assessment lien shall have the same
31 scope and effect as the statutory lien hereinbefore provided
32 for in this Section.
33 If the taxpayer believes that he does not owe some or all
34 of the tax for which the jeopardy assessment lien against him
-627- LRB9000671KDdvA
1 has been filed, or that no jeopardy to the revenue in fact
2 exists, he may protest within 20 days after being notified by
3 the Department of the filing of such jeopardy assessment lien
4 and request a hearing, whereupon the Department shall hold a
5 hearing in conformity with the provisions of this Code and,
6 pursuant thereto, shall notify the taxpayer of its findings
7 as to whether or not such jeopardy assessment lien will be
8 released. If not, and if the taxpayer is aggrieved by this
9 decision, he may file an action for judicial review of such
10 final determination of the Department in accordance with
11 Section 77-5 of this Code and the Administrative Review Law.
12 If, pursuant to such hearing (or after an independent
13 determination of the facts by the Department without a
14 hearing), the Department determines that some or all of the
15 tax covered by the jeopardy assessment lien is not owed by
16 the taxpayer, or that no jeopardy to the revenue exists, or
17 if on judicial review the final judgment of the court is that
18 the taxpayer does not owe some or all of the tax covered by
19 the jeopardy assessment lien against him, or that no jeopardy
20 to the revenue exists, the Department shall release its
21 jeopardy assessment lien to the extent of such finding of
22 nonliability for the tax, or to the extent of such finding of
23 no jeopardy to the revenue.
24 The Department shall also release its jeopardy assessment
25 lien against the taxpayer whenever the tax and penalty
26 covered by such lien, plus any interest which may be due, are
27 paid.
28 Nothing in this Section shall be construed to give the
29 Department a preference over the rights of any bona fide
30 purchaser, holder of a security interest, mechanics
31 lienholder, mortgagee, or judgment lien creditor arising
32 prior to the filing of a regular notice of lien or a notice
33 of jeopardy assessment lien in the office of the recorder in
34 the county in which the property subject to the lien is
-628- LRB9000671KDdvA
1 located: provided, however, that the word "bona fide", as
2 used in this Section shall not include any mortgage of real
3 or personal property or any other credit transaction that
4 results in the mortgagee or the holder of the security acting
5 as trustee for unsecured creditors of the taxpayer mentioned
6 in the notice of lien who executed such chattel or real
7 property mortgage or the document evidencing such credit
8 transaction. Such lien shall be inferior to the lien of
9 general taxes, special assessments and special taxes
10 heretofore or hereafter levied by any political subdivision
11 of this State.
12 In case title to land to be affected by the notice of
13 lien or notice of jeopardy assessment lien is registered
14 under the provisions of the Registered Titles (Torrens) Act,
15 such notice shall be filed in the office of the Registrar of
16 Titles of the county within which the property subject to the
17 lien is situated and shall be entered upon the register of
18 titles as a memorial or charge upon each folium of the
19 register of titles affected by such notice, and the
20 Department shall not have a preference over the rights of any
21 bona fide purchaser, mortgagee, judgment creditor or other
22 lien holder arising prior to the registration of such notice:
23 Provided, however, that the word "bona fide" shall not
24 include any mortgage of real or personal property or any
25 other credit transaction that results in the mortgagee or the
26 holder of the security acting as trustee for unsecured
27 creditors of the taxpayer mentioned in the notice of lien who
28 executed such chattel or real property mortgage or the
29 document evidencing such credit transaction.
30 Such regular lien or jeopardy assessment lien shall not
31 be effective against any purchaser with respect to any item
32 in a retailer's stock in trade purchased from the retailer in
33 the usual course of such retailer's business.
-629- LRB9000671KDdvA
1 Section 65-10. Records of State tax liens. The recorder
2 of each county shall procure a file labeled "State Tax Lien
3 Notices" and an index book labeled "State Tax Lien Index".
4 When notice of any lien or jeopardy assessment lien is
5 presented to him for filing, he shall file it in numerical
6 order in the file and shall enter it alphabetically in the
7 index. The entry shall show the name and last known business
8 address of the person named in the notice, the serial number
9 of the notice, the date and hour of filing, whether it is a
10 regular lien or a jeopardy assessment lien, and the amount of
11 tax and penalty due and unpaid, plus the amount of interest
12 due under Section 50-150 of this Code at the time when the
13 notice of lien or jeopardy assessment lien is filed.
14 No recorder or registrar of titles of any county shall
15 require that the Department pay any costs or fees in
16 connection with recordation of any notice or other document
17 filed by the Department under this Code at the time such
18 notice or other document is presented for recordation. The
19 recorder or registrar of each county, in order to receive
20 payment for fees or costs incurred by the Department, shall
21 present the Department with monthly statements indicating the
22 amount of fees and costs incurred by the Department and for
23 which no payment has been received.
24 A notice of lien may be filed after the issuance of a
25 revised final assessment pursuant to a rehearing or
26 departmental review under Section 50-145 or Section 50-150 of
27 this Code.
28 When the lien obtained pursuant to this Code has been
29 satisfied, the Department shall issue a release to the
30 person, or his agent, against whom the lien was obtained and
31 such release shall contain in legible letters a statement as
32 follows:
33 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
34 BE FILED WITH THE RECORDER OR THE REGISTRAR
-630- LRB9000671KDdvA
1 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
2 When a certificate of complete or partial release of lien
3 issued by the Department is presented for filing in the
4 office of the recorder or Registrar of Titles where a notice
5 of lien or notice of jeopardy assessment lien was filed, the
6 recorder, in the case of nonregistered property, shall
7 permanently attach the certificate of release to the notice
8 of lien or notice of jeopardy assessment lien and shall enter
9 the certificate of release and the date in the "State Tax
10 Lien Index" on the line where the notice of lien or notice of
11 jeopardy assessment lien is entered.
12 In the case of registered property, the Registrar of
13 Titles shall file and enter upon each folium of the register
14 of titles affected thereby a memorial of the certificate of
15 release which memorial when so entered shall act as a release
16 pro tanto of any memorial of such notice of lien or notice of
17 jeopardy assessment lien previously filed and registered.
18 Section 65-15. Tax liens; certificate of complete or
19 partial release. The Department shall issue a certificate of
20 complete or partial release of the lien:
21 (a) to the extent that the fair market value of any
22 property subject to the lien exceeds the amount of the lien
23 plus the amount of all prior liens upon such property;
24 (b) to the extent that such lien shall become
25 unenforceable;
26 (c) to the extent that the amount of such lien is paid
27 by the retailer whose property is subject to such lien,
28 together with any interest which may become due under Section
29 50-150 of this Code between the date when the notice of lien
30 is filed and the date when the amount of such lien is paid;
31 (d) to the extent that there is furnished to the
32 Department on a form to be approved and with a surety or
33 sureties satisfactory to the Department a bond that is
-631- LRB9000671KDdvA
1 conditioned upon the payment of the amount of such lien,
2 together with any interest which may become due under Section
3 50-150 of this Code after the notice of lien is filed, but
4 before the amount thereof is fully paid;
5 (e) to the extent and under the circumstances specified
6 in Section 65-5 of this Code in the case of jeopardy
7 assessment liens;
8 (f) to the extent to which an assessment is reduced
9 pursuant to a rehearing or departmental review under Section
10 50-145 or Section 50-150 of this Code.
11 A certificate of complete or partial release of any lien
12 shall be held conclusive that the lien upon the property
13 covered by the certificate is extinguished to the extent
14 indicated by such certificate.
15 Section 65-20. Tax liens on realty; enforcement. In
16 addition to any other remedy provided for by the laws of this
17 State, and provided that no hearing or proceedings for review
18 provided by this Code shall be pending, and the time for the
19 taking thereof shall have expired, the Department may
20 foreclose in the circuit court any lien on real property for
21 any tax or penalty imposed by this Code to the same extent
22 and in the same manner as in the enforcement of other liens.
23 Provided that such proceedings to foreclose shall not be
24 instituted more than 20 years after the filing of the notice
25 of lien under the provisions of Section 65-10, except that
26 the time limitation period on the Department's right to
27 commence any such foreclosure proceeding shall not run during
28 any period of time in which a court order has the effect of
29 enjoining or restraining the Department from commencing such
30 foreclosure proceeding. The process, practice and procedure
31 for such foreclosure shall be the same as provided in the
32 Civil Practice Law, as amended. The provisions of this
33 amendatory Act of 1984 shall apply to any lien which has not
-632- LRB9000671KDdvA
1 expired before September 13, 1984.
2 Section 65-25. Demand for payment of tax. In addition to
3 any other remedy provided for by the laws of this State, if
4 the taxes imposed by this Code are not paid within the time
5 required by this Code, the Department, or some person
6 designated by it, may cause a demand to be made on the
7 taxpayer for the payment of the tax. If the tax remains
8 unpaid for 10 days after demand has been made and no
9 proceedings have been taken for review, the Department may
10 issue a warrant directed to the sheriff of any county of the
11 State or to any State officer authorized to serve process,
12 commanding the sheriff or other officer to levy upon property
13 and rights to property (whether real or personal, tangible or
14 intangible) of the taxpayer, without exemption, found within
15 his or her jurisdiction, for the payment of the amount of
16 unpaid tax with the added penalties, interest and the cost of
17 executing the warrant. The term "levy" includes the power of
18 distraint and seizure by any means. In any case in which the
19 warrant to levy has been issued, the sheriff or other person
20 to whom the warrant was directed may seize and sell such
21 property or rights to property. Such warrant shall be
22 returned to the Department together with the money collected
23 by virtue of the warrant within the time specified in the
24 warrant, which may not be less than 20 nor more than 90 days
25 from the date of the warrant. The sheriff or other officer to
26 whom such warrant is directed shall proceed in the same
27 manner as is prescribed by law for proceeding against
28 property to enforce judgments which are entered by a circuit
29 court of this State, and is entitled to the same fees for his
30 or her services in executing the warrant, to be collected in
31 the same manner. The Department, or some officer, employee or
32 agent designated by it, may bid for and purchase any such
33 property sold.
-633- LRB9000671KDdvA
1 No proceedings for a levy under this Section may be
2 commenced more than 20 years after the latest date for filing
3 of the notice of lien under Section 65-10 of this Code,
4 without regard to whether such notice was actually filed.
5 Any officer or employee of the Department designated in
6 writing by the Director is authorized to serve process under
7 this Section to levy upon accounts or other intangible assets
8 of a taxpayer held by a financial organization, as defined by
9 Section 1501 of the Illinois Income Tax Act. In addition to
10 any other provisions of this Section, any officer or employee
11 of the Department designated in writing by the Director may
12 levy upon the following property and rights to property
13 belonging to a taxpayer: contractual payments, accounts and
14 notes receivable and other evidences of debt, and interest on
15 bonds, by serving a notice of levy on the person making such
16 payment. Levy shall not be made until the Department has
17 caused a demand to be made on the taxpayer in the manner
18 provided above. In addition to any other provisions of this
19 Section, any officer or employee of the Department designated
20 in writing by the Director, may levy upon the salary, wages,
21 commissions and bonuses of any employee, including officers,
22 employees, or elected officials of the United States as
23 authorized by Section 5520a of the Government Organization
24 and Employees Act (5 U.S.C. 5520a), but not upon the salary
25 or wages of officers, employees, or elected officials of any
26 state other than this State, by serving a notice of levy on
27 the employer. Levy shall not be made until the Department
28 has caused a demand to be made on the employee in the manner
29 provided above. The provisions of Section 12-803 of the Code
30 of Civil Procedure relating to maximum compensation subject
31 to collection under wage deduction orders shall apply to all
32 levies made upon compensation under this Section. To the
33 extent of the amount due on the levy, the employer or other
34 person making payments to the taxpayer shall hold any
-634- LRB9000671KDdvA
1 non-exempt wages or other payments due or which subsequently
2 come due. The levy or balance due thereon is a lien on wages
3 or other payments due at the time of the service of the
4 notice of levy, and such lien shall continue as to subsequent
5 earnings and other payments until the total amount due upon
6 the levy is paid, except that such lien on subsequent
7 earnings or other payments shall terminate sooner if the
8 employment relationship is terminated or if the notice of
9 levy is rescinded or modified. The employer or other person
10 making payments to the taxpayer shall file, on or before the
11 return dates stated in the notice of levy (which shall not be
12 more often than bimonthly) a written answer under oath to
13 interrogatories, setting forth the amount due as wages or
14 other payments to the taxpayer for the payment periods ending
15 immediately prior to the appropriate return date. A lien
16 obtained hereunder shall have priority over any subsequent
17 lien obtained pursuant to Section 12-808 of the Code of Civil
18 Procedure, except that liens for the support of a spouse or
19 dependent children shall have priority over all liens
20 obtained hereunder.
21 In any case where property or rights to property have
22 been seized by an officer of the Illinois Department of Law
23 Enforcement, or successor agency thereto, under the authority
24 of a warrant to levy issued by the Department of Revenue, the
25 Department of Revenue may take possession of and may sell
26 such property or rights to property and the Department of
27 Revenue may contract with third persons to conduct sales of
28 such property or rights to the property. In the conduct of
29 such sales, the Department of Revenue shall proceed in the
30 same manner as is prescribed by law for proceeding against
31 property to enforce judgments which are entered by a circuit
32 court of this State. If, in the Department's opinion, no
33 offer to purchase at such sale is acceptable and the State's
34 interest would be better served by retaining the property for
-635- LRB9000671KDdvA
1 sale at a later date, then the Department may decline to
2 accept any bid and may retain the property for sale at a
3 later date.
4 Section 65-30. Sale of property on which judgment for
5 tax is inferior; redemption. Except as to any sale had by
6 virtue of a judgment of foreclosure in accordance with
7 Article XV of the Code of Civil Procedure, whenever any real
8 estate has been or is sold at a judicial sale or a sale for
9 the enforcement of a judgment and such real estate is then
10 subject to a tax lien or notice of tax lien in favor of the
11 Department, as hereinbefore provided, and which is junior or
12 inferior to the lien so enforced or foreclosed by or through
13 that sale, the right to redeem in any manner under or by
14 virtue of such tax lien or claim for tax lien from such sale
15 or from the lien so foreclosed or enforced terminates at the
16 end of 12 months from the date upon which there is filed for
17 record in the office of the recorder for the county in which
18 the lands so sold are situated, if such lands are
19 unregistered, or in the office of the Registrar of Titles for
20 such county, if such lands are registered, a certified copy
21 of the original or duplicate recorded or registered
22 certificate of such sale, such certified copy being endorsed
23 by the Director of Revenue showing service of a copy of such
24 certificate upon him or her, and upon such service it shall
25 be the duty of such officer to make such endorsement.
26 Service may be by United States registered or certified mail.
27 Section 70-5. Revocation of certificate of registration.
28 The Department may, after notice and a hearing as provided
29 herein, revoke the certificate of registration of any person
30 who violates any of the provisions of this Code. Before
31 revocation of a certificate of registration the Department
32 shall, within 90 days after non-compliance and at least 7
-636- LRB9000671KDdvA
1 days prior to the date of the hearing, give the person so
2 accused notice in writing of the charge against him or her,
3 and on the date designated shall conduct a hearing upon this
4 matter. The lapse of such 90 day period shall not preclude
5 the Department from conducting revocation proceedings at a
6 later date if necessary. Any hearing held under this Section
7 shall be conducted by the Director of Revenue or by any
8 officer or employee of the Department designated, in writing,
9 by the Director of Revenue.
10 Upon the hearing of any such proceeding, the Director of
11 Revenue, or any officer or employee of the Department
12 designated, in writing, by the Director of Revenue, may
13 administer oaths and the Department may procure by its
14 subpoena the attendance of witnesses and, by its subpoena
15 duces tecum, the production of relevant books and papers. Any
16 circuit court, upon application either of the accused or of
17 the Department, may, by order duly entered, require the
18 attendance of witnesses and the production of relevant books
19 and papers, before the Department in any hearing relating to
20 the revocation of certificates of registration. Upon refusal
21 or neglect to obey the order of the court, the court may
22 compel obedience thereof by proceedings for contempt.
23 The Department may, by application to any circuit court,
24 obtain an injunction restraining any person who engages in
25 the business of selling tangible personal property at retail
26 in this State without a certificate of registration (either
27 because the certificate of registration has been revoked or
28 because of a failure to obtain a certificate of registration
29 in the first instance) from engaging in such business until
30 such person, as if he or she were a new applicant for a
31 certificate of registration, shall comply with all of the
32 conditions, restrictions and requirements of Sections 35-5
33 through 35-45 of this Code and qualify for and obtain a
34 certificate of registration. Upon refusal or neglect to obey
-637- LRB9000671KDdvA
1 the order of the court, the court may compel obedience
2 thereof by proceedings for contempt.
3 It shall not be a defense in a proceeding before the
4 Department to revoke a certificate of registration issued
5 under this Code, or in any action by the Department to
6 collect any tax due under this Code, that the holder of the
7 certificate is a party to an installment payment agreement
8 under Sections 35-5 through 35-45 if the liability which is
9 the basis of the revocation proceeding, or the tax that is
10 sought to be collected: (1) was incurred after the date of
11 the agreement was approved by the Department; or (2) was
12 incurred prior to the date the agreement was approved by the
13 Department, but was not included in the agreement; or (3) was
14 included in the agreement, but the taxpayer is in default of
15 the agreement.
16 Section 70-10. Investigations and hearings. For the
17 purpose of administering and enforcing the provisions of this
18 Code, the Department, or any officer or employee of the
19 Department designated, in writing, by the Director thereof,
20 may hold investigations and hearings concerning any matters
21 covered by this Code and may examine any books, papers,
22 records or memoranda bearing upon the sales of tangible
23 personal property or services of any such person, and may
24 require the attendance of such person or any officer or
25 employee of such person, or of any person having knowledge of
26 such business, and may take testimony and require proof for
27 its information. In the conduct of any investigation or
28 hearing, neither the Department nor any officer or employee
29 thereof shall be bound by the technical rules of evidence,
30 and no informality in any proceeding, or in the manner of
31 taking testimony, shall invalidate any order, decision, rule
32 or regulation made or approved or confirmed by the
33 Department. The Director of Revenue, or any officer or
-638- LRB9000671KDdvA
1 employee of the Department authorized by the Director
2 thereof, shall have power to administer oaths to such
3 persons. The books, papers, records and memoranda of the
4 Department, or parts thereof, may be proved in any hearing,
5 investigation, or legal proceeding by a reproduced copy
6 thereof under the certificate of the Director of Revenue.
7 Such reproduced copy shall, without further proof, be
8 admitted into evidence before the Department or in any legal
9 proceeding.
10 Section 70-15. Incriminating testimony. No person shall
11 be excused from testifying or from producing any books,
12 papers, records or memoranda in any investigation or upon any
13 hearing, when ordered to do so by the Department or any
14 officer or employee thereof, upon the ground that the
15 testimony or evidence, documentary or otherwise, may tend to
16 incriminate him or subject him to a criminal penalty, but no
17 person shall be prosecuted or subjected to any criminal
18 penalty for, or on account of, any transaction made or thing
19 concerning which he may testify or produce evidence,
20 documentary or otherwise, before the Department or an officer
21 or employee thereof; provided, that such immunity shall
22 extend only to a natural person who, in obedience to a
23 subpoena, gives testimony under oath or produces evidence,
24 documentary or otherwise, under oath. No person so testifying
25 shall be exempt from prosecution and punishment for perjury
26 committed in so testifying.
27 Section 70-20. Subpoenas; witnesses; depositions. The
28 Department or any officer or employee of the Department
29 designated, in writing, by the Director thereof, shall at its
30 or his or her own instance, or on the written request of any
31 other party to the proceeding, issue subpoenas requiring the
32 attendance of and the giving of testimony by witnesses, and
-639- LRB9000671KDdvA
1 subpoenas duces tecum requiring the production of books,
2 papers, records or memoranda. All subpoenas and subpoenas
3 duces tecum issued under the terms of this Code may be served
4 by any person of full age. The fees of witnesses for
5 attendance and travel shall be the same as the fees of
6 witnesses before the circuit court of this State; such fees
7 to be paid when the witness is excused from further
8 attendance. When the witness is subpoenaed at the instance of
9 the Department or any officer or employee thereof, such fees
10 shall be paid in the same manner as other expenses of the
11 Department, and when the witness is subpoenaed at the
12 instance of any other party to any such proceeding the
13 Department may require that the cost of service of the
14 subpoena or subpoena duces tecum and the fee of the witness
15 be borne by the party at whose instance the witness is
16 summoned. In such case, the Department, in its discretion,
17 may require a deposit to cover the cost of such service and
18 witness fees. A subpoena or subpoena duces tecum issued as
19 aforesaid shall be served in the same manner as a subpoena
20 issued out of a court.
21 Any circuit court of this State, upon the application of
22 the Department or any officer or employee thereof, or upon
23 the application of any other party to the proceeding, may, in
24 its discretion, compel the attendance of witnesses, the
25 production of books, papers, records or memoranda and the
26 giving of testimony before the Department or any officer or
27 employee thereof conducting an investigation or holding a
28 hearing authorized by this Code, by an attachment for
29 contempt, or otherwise, in the same manner as production of
30 evidence may be compelled before the court.
31 The Department or any officer or employee thereof, or any
32 other party in an investigation or hearing before the
33 Department, may cause the depositions of witnesses within the
34 State to be taken in the manner prescribed by law for like
-640- LRB9000671KDdvA
1 depositions in civil actions in courts of this State, and to
2 that end compel the attendance of witnesses and the
3 production of books, papers, records or memoranda.
4 Section 77-5. Review under Administrative Review Law.
5 The Department is authorized to make, promulgate and enforce
6 such reasonable rules and regulations relating to the
7 administration and enforcement of the provisions of this Code
8 as may be deemed expedient.
9 Whenever notice is required by this Code, such notice may
10 be given by United States registered or certified mail,
11 addressed to the person concerned at his last known address,
12 and proof of such mailing shall be sufficient for the
13 purposes of this Code. Notice of any hearing provided for by
14 this Code shall be so given not less than 7 days prior to the
15 day fixed for the hearing. Following the initial contact of a
16 person represented by an attorney, the Department shall not
17 contact the person concerned but shall only contact the
18 attorney representing the person concerned.
19 All hearings provided for in this Code with respect to or
20 concerning a taxpayer having his or her principal place of
21 business in this State other than in Cook County shall be
22 held at the Department's office nearest to the location of
23 the taxpayer's principal place of business: provided that if
24 the taxpayer has his or her principal place of business in
25 Cook County, such hearing shall be held in Cook County; and
26 provided, further, that if the taxpayer does not have his or
27 her principal place of business in this State, such hearing
28 shall be held in Sangamon County.
29 The Circuit Court of the County wherein the taxpayer has
30 his or her principal place of business, or of Sangamon County
31 in those cases where the taxpayer does not have his or her
32 principal place of business in this State, shall have power
33 to review all final administrative decisions of the
-641- LRB9000671KDdvA
1 Department in administering the provisions of this Code:
2 provided that if the administrative proceeding which is to be
3 reviewed judicially is a claim for refund proceeding
4 commenced in accordance with Section 55-5 or 55-10 of this
5 Code and Section 2a of the State Officers and Employees Money
6 Disposition Act, the Circuit Court having jurisdiction of
7 the action for judicial review under this Section and under
8 the Administrative Review Law shall be the same court that
9 entered the temporary restraining order or preliminary
10 injunction which is provided for in Section 2a of the State
11 Officers and Employees Money Disposition Act, and which
12 enables such claim proceeding to be processed and disposed of
13 as a claim for refund proceeding rather than as a claim for
14 credit proceeding.
15 The provisions of the Administrative Review Law, and the
16 rules adopted pursuant thereto, shall apply to and govern all
17 proceedings for the judicial review of final administrative
18 decisions of the Department hereunder. The term
19 "administrative decision" is defined as in Section 3-101 of
20 the Code of Civil Procedure.
21 Any person filing an action under the Administrative
22 Review Law to review a final assessment or revised final
23 assessment issued by the Department under this Code shall,
24 within 20 days after filing the complaint, file a bond with
25 good and sufficient surety or sureties residing in this State
26 or licensed to do business in this State or, instead of the
27 bond, obtain an order from the court imposing a lien upon the
28 plaintiff's property as provided in Article 65. If the person
29 filing the complaint fails to comply with this bonding
30 requirement within 20 days after filing the complaint, the
31 Department shall file a motion to dismiss and the court shall
32 dismiss the action unless the person filing the action
33 complies with the bonding requirement set out in this
34 provision within 30 days after the filing of the Department's
-642- LRB9000671KDdvA
1 motion to dismiss. Upon dismissal of any complaint for
2 failure to comply with the jurisdictional prerequisites
3 herein set forth, the court is empowered to and shall enter
4 judgment against the taxpayer and in favor of the Department
5 in the amount of the final assessment or revised final
6 assessment, together with any interest which may have accrued
7 since the Department issued the final assessment or revised
8 final assessment, and for costs, which judgment is
9 enforceable as other judgments for the payment of money. The
10 lien provided for in this Section shall not be applicable to
11 the real property of a corporate surety duly licensed to do
12 business in this State. The amount of such bond shall be
13 fixed and approved by the court, but shall not be less than
14 the amount of the tax and penalty claimed to be due by the
15 Department in its final assessment or revised final
16 assessment to the person filing such bond, plus the amount of
17 interest due from such person to the Department at the time
18 when the Department issued its final assessment to such
19 person. Such bond shall be executed to the Department of
20 Revenue and shall be conditioned on the taxpayer's payment
21 within 30 days after termination of the proceedings for
22 judicial review of the amount of tax and penalty and interest
23 found by the court to be due in such proceedings for judicial
24 review. Such bond, when filed and approved, shall, from such
25 time until 2 years after termination of the proceedings for
26 judicial review in which the bond is filed, be a lien against
27 the real estate situated in the county in which the bond is
28 filed, of the person filing such bond, and of the surety or
29 sureties on such bond, until the condition of the bond has
30 been complied with or until the bond has been canceled as
31 hereinafter provided. If the person filing any such bond
32 fails to keep the condition thereof, such bond shall
33 thereupon be forfeited, and the Department may institute an
34 action upon such bond in its own name for the entire amount
-643- LRB9000671KDdvA
1 of the bond and costs. Such action upon the bond shall be in
2 addition to any other remedy provided for herein. If the
3 person filing such bond complies with the condition thereof,
4 or if, in the proceedings for judicial review in which such
5 bond is filed, the court determines that no amount of tax or
6 penalty or interest is due, such bond shall be canceled.
7 If the court finds in a particular case that the
8 plaintiff cannot procure and furnish a satisfactory surety or
9 sureties for the kind of bond required herein, the court may
10 relieve the plaintiff of the obligation of filing such bond,
11 if, upon the timely application for a lien in lieu thereof
12 and accompanying proof therein submitted, the court is
13 satisfied that any such lien imposed would operate to secure
14 the assessment in the manner and to the degree as would a
15 bond. Upon a finding that such lien applied for would secure
16 the assessment at issue, the court shall enter an order, in
17 lieu of such bond, subjecting the plaintiff's real and
18 personal property (including subsequently acquired property),
19 situated in the county in which such order is entered, to a
20 lien in favor of the Department. Such lien shall be for the
21 amount of the tax and penalty claimed to be due by the
22 Department in its final assessment or revised final
23 assessment, plus the amount of interest due from such person
24 to the Department at the time when the Department issued its
25 final assessment to such person, and shall continue in full
26 force and effect until the termination of the proceedings for
27 judicial review, or until the plaintiff pays, to the
28 Department, the tax and penalty and interest to secure which
29 the lien is given, whichever happens first. In the exercise
30 of its discretion, the court may impose a lien regardless of
31 the ratio of the taxpayer's assets to the final assessment or
32 revised final assessment plus the amount of the interest and
33 penalty. Nothing in this Section shall be construed to give
34 the Department a preference over the rights of any bona fide
-644- LRB9000671KDdvA
1 purchaser, mortgagee, judgment creditor or other lien holder
2 arising prior to the entry of the order creating such lien in
3 favor of the Department: provided, however, that the word
4 "bona fide", as used in this Section, shall not include any
5 mortgage of real or personal property or any other credit
6 transaction that results in the mortgagee or the holder of
7 the security acting as trustee for unsecured creditors of the
8 taxpayer mentioned in the order for lien who executed such
9 chattel or real property mortgage or the document evidencing
10 such credit transaction. Such lien shall be inferior to the
11 lien of general taxes, special assessments and special taxes
12 heretofore or hereafter levied by any political subdivision
13 of this State. Such lien shall not be effective against any
14 purchaser with respect to any item in a retailer's stock in
15 trade purchased from the retailer in the usual course of such
16 retailer's business, and such lien shall not be enforced
17 against the household effects, wearing apparel, or the books,
18 tools or implements of a trade or profession kept for use by
19 any person. Such lien shall not be effective against real
20 property whose title is registered under the provisions of
21 the Registered Titles (Torrens) Act until the provisions of
22 Section 85 of that Act are complied with.
23 Service upon the Director of Revenue or the Assistant
24 Director of Revenue of the Department of Revenue of summons
25 issued in an action to review a final administrative decision
26 of the Department shall be service upon the Department. The
27 Department shall certify the record of its proceedings if the
28 taxpayer pays to it the sum of 75¢ per page of testimony
29 taken before the Department and 25¢ per page of all other
30 matters contained in such record, except that these charges
31 may be waived where the Department is satisfied that the
32 aggrieved party is a poor person who cannot afford to pay
33 such charges. If payment for such record is not made by the
34 taxpayer within 30 days after notice from the Department or
-645- LRB9000671KDdvA
1 the Attorney General of the cost thereof, the court in which
2 the proceeding is pending, on motion of the Department, shall
3 dismiss the complaint and (where the administrative decision
4 as to which the action for judicial review was filed is a
5 final assessment or revised final assessment) shall enter
6 judgment against the taxpayer and in favor of the Department
7 for the amount of tax and penalty shown by the Department's
8 final assessment or revised final assessment to be due, plus
9 interest as provided for in Section 50-150 of this Code from
10 the date when the liability upon which such interest accrued
11 became delinquent until the entry of the judgment in the
12 action for judicial review under the Administrative Review
13 Law, and also for costs.
14 Whenever any proceeding provided by this Code is begun
15 before the Department, either by the Department or by a
16 person subject to this Code, and such person thereafter dies
17 or becomes a person under legal disability before such
18 proceeding is concluded, the legal representative of the
19 deceased or person under legal disability shall notify the
20 Department of such death or legal disability. Such legal
21 representative, as such, shall then be substituted by the
22 Department for such person. If the legal representative
23 fails to notify the Department of his or her appointment as
24 such legal representative, the Department may, upon its own
25 motion, substitute such legal representative in the
26 proceeding pending before the Department for the person who
27 died or became a person under legal disability.
28 The changes made by Public Act 89-60 to Section 12 of the
29 Retailers' Occupation Tax Act, the predecessor to this
30 Section 77-5, apply to all actions pending on and after June
31 30, 1995 to review a final assessment or revised final
32 assessment issued by the Department.
33 Section 80-5. Violations under the retailers' occupation
-646- LRB9000671KDdvA
1 tax. This Section applies to the retailers' occupation tax
2 only. When the amount due is under $300, any person engaged
3 in the business of selling tangible personal property at
4 retail in this State who fails to file a return, or who files
5 a fraudulent return, or any officer, employee or agent of a
6 corporation, member, employee or agent of a partnership, or
7 manager, member, agent, or employee of a limited liability
8 company engaged in the business of selling tangible personal
9 property at retail in this State who, as such officer,
10 employee, agent, manager, or member is under a duty to file a
11 return, or any officer, agent or employee of a corporation,
12 member, agent, or employee of a partnership, or manager,
13 member, agent, or employee of a limited liability company
14 engaged in the business of selling tangible personal property
15 at retail in this State who files or causes to be filed or
16 signs or causes to be signed a fraudulent return filed on
17 behalf of such corporation or limited liability company, or
18 any accountant or other agent who knowingly enters false
19 information on the return of any taxpayer under Article 10,
20 is guilty of a Class 4 felony.
21 Any person who or any officer or director of any
22 corporation, partner or member of any partnership, or manager
23 or member of a limited liability company that: (a) violates
24 Sections 35-5 through 35-45 or (b) fails to keep books and
25 records, or fails to produce books and records as required by
26 Section 45-10 or (c) willfully violates a rule or regulation
27 of the Department for the administration and enforcement of
28 Article 10 is guilty of a Class A misdemeanor. Any person,
29 manager or member of a limited liability company, or officer
30 or director of any corporation who engages in the business of
31 selling tangible personal property at retail after the
32 certificate of registration of that person, corporation,
33 limited liability company, or partnership has been revoked is
34 guilty of a Class A misdemeanor. Each day such person,
-647- LRB9000671KDdvA
1 corporation, or partnership is engaged in business without a
2 certificate of registration or after the certificate of
3 registration of that person, corporation, or partnership has
4 been revoked constitutes a separate offense.
5 Any purchaser who obtains a registration number or resale
6 number from the Department through misrepresentation, or who
7 represents to a seller that such purchaser has a registration
8 number or a resale number from the Department when he knows
9 that he does not, or who uses his registration number or
10 resale number to make a seller believe that he is buying
11 tangible personal property for resale when such purchaser in
12 fact knows that this is not the case is guilty of a Class 4
13 felony.
14 Any distributor, supplier or other reseller of motor fuel
15 registered pursuant to Sections 35-5 through 35-50 who fails
16 to collect the prepaid tax on invoiced gallons of motor fuel
17 sold or who fails to deliver a statement of tax paid to the
18 purchaser or to the Department as required by Sections 10-30
19 and 10-35, respectively, shall be guilty of a Class A
20 misdemeanor if the amount due is under $300, and a Class 4
21 felony if the amount due is $300 or more.
22 When the amount due is under $300, any person who accepts
23 money that is due to the Department under Article 10 from a
24 taxpayer for the purpose of acting as the taxpayer's agent to
25 make the payment to the Department, but who fails to remit
26 such payment to the Department when due is guilty of a Class
27 4 felony.
28 Any seller who collects or attempts to collect an amount
29 (however designated) which purports to reimburse such seller
30 for retailers' occupation tax liability measured by receipts
31 which such seller knows are not subject to retailers'
32 occupation tax, or any seller who knowingly over-collects or
33 attempts to over-collect an amount purporting to reimburse
34 such seller for retailers' occupation tax liability in a
-648- LRB9000671KDdvA
1 transaction which is subject to the tax that is imposed by
2 Article 10, shall be guilty of a Class 4 felony for each such
3 offense. This paragraph does not apply to an amount
4 collected by the seller as reimbursement for the seller's
5 retailers' occupation tax liability on receipts which are
6 subject to tax under Article 10 as long as such collection is
7 made in compliance with the tax collection brackets
8 prescribed by the Department in its rules and regulations.
9 When the amount due is $300 or more, any person engaged
10 in the business of selling tangible personal property at
11 retail in this State who fails to file a return, or who files
12 a fraudulent return, or any officer, employee or agent of a
13 corporation, member, employee or agent of a partnership, or
14 manager, member, agent, or employee of a limited liability
15 company engaged in the business of selling tangible personal
16 property at retail in this State who, as such officer,
17 employee, agent, manager, or member is under a duty to file a
18 return and who fails to file such return or any officer,
19 agent, or employee of a corporation, member, agent or
20 employee of a partnership, or manager, member, agent, or
21 employee of a limited liability company engaged in the
22 business of selling tangible personal property at retail in
23 this State who files or causes to be filed or signs or causes
24 to be signed a fraudulent return filed on behalf of such
25 corporation or limited liability company, or any accountant
26 or other agent who knowingly enters false information on the
27 return of any taxpayer under Article 10 is guilty of a Class
28 3 felony.
29 When the amount due is $300 or more, any person engaged
30 in the business of selling tangible personal property at
31 retail in this State who accepts money that is due to the
32 Department under Article 10 from a taxpayer for the purpose
33 of acting as the taxpayer's agent to make payment to the
34 Department but fails to remit such payment to the Department
-649- LRB9000671KDdvA
1 when due, is guilty of a Class 3 felony.
2 Any person whose principal place of business is in this
3 State and who is charged with a violation under this Section
4 shall be tried in the county where his principal place of
5 business is located unless he asserts a right to be tried in
6 another venue.
7 Any taxpayer or agent of a taxpayer who with the intent
8 to defraud purports to make a payment due to the Department
9 by issuing or delivering a check or other order upon a real
10 or fictitious depository for the payment of money, knowing
11 that it will not be paid by the depository, shall be guilty
12 of a deceptive practice in violation of Section 17-1 of the
13 Criminal Code of 1961.
14 A prosecution for any act in violation of this Section
15 may be commenced at any time within 3 years of the commission
16 of that act.
17 Section 85-5. Disposition of retailers' occupation tax
18 receipts. This Section applies to the retailers' occupation
19 tax only. Beginning January 1, 1990, each month the
20 Department shall pay into the Local Government Tax Fund, a
21 special fund in the State treasury which is hereby created,
22 the net revenue realized for the preceding month from the 1%
23 tax on sales of food for human consumption which is to be
24 consumed off the premises where it is sold (other than
25 alcoholic beverages, soft drinks and food which has been
26 prepared for immediate consumption) and prescription and
27 nonprescription medicines, drugs, medical appliances and
28 insulin, urine testing materials, syringes and needles used
29 by diabetics.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the County and Mass Transit District Fund, a
32 special fund in the State treasury which is hereby created,
33 4% of the net revenue realized for the preceding month from
-650- LRB9000671KDdvA
1 the 6.25% general rate.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the Local Government Tax Fund 16% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Of the remainder of the moneys received by the Department
8 pursuant to Article 10, disposition of funds shall be made as
9 provided in Section 85-25.
10 Subject to payment of amounts into the Build Illinois
11 Fund as provided in this Section and Section 85-25,
12 disposition of funds shall be made as provided in Section
13 85-30.
14 Subject to payment of amounts into the Build Illinois
15 Fund and the McCormick Place Expansion Project Fund pursuant
16 to this Article, each month the Department shall pay into the
17 Local Government Distributive Fund 0.4% of the net revenue
18 realized for the preceding month from the 5% general rate or
19 0.4% of 80% of the net revenue realized for the preceding
20 month from the 6.25% general rate, as the case may be, on the
21 selling price of tangible personal property which amount
22 shall, subject to appropriation, be distributed as provided
23 in Section 2 of the State Revenue Sharing Act. No payments
24 or distributions pursuant to this paragraph shall be made if
25 the tax imposed by Article 10 on photoprocessing products is
26 declared unconstitutional, or if the proceeds from such tax
27 are unavailable for distribution because of litigation.
28 Subject to payment of amounts into the Build Illinois
29 Fund and the McCormick Place Expansion Project pursuant this
30 Article, beginning July 1, 1993, the Department shall each
31 month pay into the Illinois Tax Increment Fund 0.27% of 80%
32 of the net revenue realized for the preceding month from the
33 6.25% general rate on the selling price of tangible personal
34 property.
-651- LRB9000671KDdvA
1 Of the remainder of the moneys received by the Department
2 pursuant to Article 10, 75% thereof shall be paid into the
3 State Treasury and 25% shall be reserved in a special account
4 and used only for the transfer to the Common School Fund as
5 part of the monthly transfer from the General Revenue Fund in
6 accordance with Section 8a of the State Finance Act.
7 As soon as possible after the first day of each month,
8 upon certification of the Department of Revenue, the
9 Comptroller shall order transferred and the Treasurer shall
10 transfer from the General Revenue Fund to the Motor Fuel Tax
11 Fund an amount equal to 1.7% of 80% of the net revenue
12 realized under Article 10 for the second preceding month;
13 except that this transfer shall not be made for the months
14 February through June, 1992.
15 For purposes of this Section, net revenue realized for a
16 month shall be the revenue collected by the State pursuant to
17 Article 10, less the amount paid out during that month as
18 refunds to taxpayers for overpayment of liability.
19 Section 85-15. Distribution of service occupation tax
20 receipts. This Section shall apply to the service occupation
21 tax only. Beginning January 1, 1990, each month the
22 Department shall pay into the Local Government Tax Fund the
23 revenue realized for the preceding month from the 1% tax on
24 sales of food for human consumption which is to be consumed
25 off the premises where it is sold (other than alcoholic
26 beverages, soft drinks and food which has been prepared for
27 immediate consumption) and prescription and nonprescription
28 medicines, drugs, medical appliances and insulin, urine
29 testing materials, syringes and needles used by diabetics.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the County and Mass Transit District Fund 4%
32 of the revenue realized for the preceding month from the
33 6.25% general rate.
-652- LRB9000671KDdvA
1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the
3 revenue realized for the preceding month from the 6.25%
4 general rate on transfers of tangible personal property.
5 Of the remainder of the moneys received by the Department
6 pursuant to Article 20, disposition of funds shall be made as
7 provided in Section 85-25.
8 Subject to payment of amounts into the Build Illinois
9 Fund as provided in this Section and Section 85-25,
10 disposition of funds shall be made as provided in Section
11 85-30.
12 Subject to payment of amounts into the Build Illinois
13 Fund and the McCormick Place Expansion Project Fund pursuant
14 to this Article, each month the Department shall pay into the
15 Local Government Distributive Fund 0.4% of the net revenue
16 realized for the preceding month from the 5% general rate or
17 0.4% of 80% of the net revenue realized for the preceding
18 month from the 6.25% general rate, as the case may be, on the
19 selling price of tangible personal property which amount
20 shall, subject to appropriation, be distributed as provided
21 in Section 2 of the State Revenue Sharing Act. No payments
22 or distributions pursuant to this paragraph shall be made if
23 the tax imposed by Article 20 on photoprocessing products is
24 declared unconstitutional, or if the proceeds from such tax
25 are unavailable for distribution because of litigation.
26 Subject to payment of amounts into the Build Illinois
27 Fund, the McCormick Place Expansion Project Fund, and the
28 Local Government Distributive Fund pursuant to this Article,
29 beginning July 1, 1993, the Department shall each month pay
30 into the Illinois Tax Increment Fund 0.27% of 80% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property.
34 Remaining moneys received by the Department pursuant to
-653- LRB9000671KDdvA
1 Article 20 shall be paid into the General Revenue Fund of the
2 State Treasury.
3 As soon as possible after the first day of each month,
4 upon certification of the Department of Revenue, the
5 Comptroller shall order transferred and the Treasurer shall
6 transfer from the General Revenue Fund to the Motor Fuel Tax
7 Fund an amount equal to 1.7% of 80% of the net revenue
8 realized under this Article 20 for the second preceding
9 month; except that this transfer shall not be made for the
10 months February through June, 1992.
11 For purposes of this Section net revenue realized for a
12 month shall be the revenue collected by the State pursuant to
13 Article 20, less the amount paid out during that month as
14 refunds to taxpayers for overpayment of liability.
15 Section 85-20. Distribution of funds from the service
16 use tax. This Section shall apply to the service use tax
17 only. Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Tax Reform Fund, a special
19 fund in the State Treasury, the net revenue realized for the
20 preceding month from the 1% tax on sales of food for human
21 consumption which is to be consumed off the premises where it
22 is sold (other than alcoholic beverages, soft drinks and food
23 which has been prepared for immediate consumption) and
24 prescription and nonprescription medicines, drugs, medical
25 appliances and insulin, urine testing materials, syringes and
26 needles used by diabetics.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the State and Local Sales Tax Reform Fund 20%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on transfers of tangible personal
31 property, other than tangible personal property which is
32 purchased outside Illinois at retail from a retailer and
33 which is titled or registered by an agency of this State's
-654- LRB9000671KDdvA
1 government.
2 Of the remainder of the moneys received by the Department
3 pursuant to Article 25, disposition of funds shall be made as
4 provided in Section 85-25.
5 Subject to payment of amounts into the Build Illinois
6 Fund as provided in this Section and Section 85-25,
7 distribution of funds shall be made as provided in Section
8 85-30.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to this Article, each month the Department shall pay into the
12 Local Government Distributive Fund 0.4% of the net revenue
13 realized for the preceding month from the 5% general rate or
14 0.4% of 80% of the net revenue realized for the preceding
15 month from the 6.25% general rate, as the case may be, on the
16 selling price of tangible personal property which amount
17 shall, subject to appropriation, be distributed as provided
18 in Section 2 of the State Revenue Sharing Act. No payments or
19 distributions pursuant to this paragraph shall be made if the
20 tax imposed by Article 25 on photo processing products is
21 declared unconstitutional, or if the proceeds from such tax
22 are unavailable for distribution because of litigation.
23 Subject to payment of amounts into the Build Illinois
24 Fund, the McCormick Place Expansion Project Fund, and the
25 Local Government Distributive Fund pursuant to this Article,
26 beginning July 1, 1993, the Department shall each month pay
27 into the Illinois Tax Increment Fund 0.27% of 80% of the net
28 revenue realized for the preceding month from the 6.25%
29 general rate on the selling price of tangible personal
30 property.
31 All remaining moneys received by the Department pursuant
32 to Article 25 shall be paid into the General Revenue Fund of
33 the State Treasury.
34 As soon as possible after the first day of each month,
-655- LRB9000671KDdvA
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under Article 25 for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June, 1992.
8 For purposes of this Section, net revenue realized for a
9 month shall be the revenue collected by the State pursuant to
10 Article 25, less the amount paid out during that month as
11 refunds to taxpayers for overpayment of liability.
12 Section 90-10. Bulk sales. If any taxpayer, outside the
13 usual course of his business, sells or transfers the major
14 part of any one or more of (A) the stock of goods which he is
15 engaged in the business of selling, (B) the furniture or
16 fixtures, (C) the machinery and equipment, or (D) the real
17 property, of any business that is subject to the provisions
18 of this Code, the purchaser or transferee of such asset
19 shall, no later than 10 days after the sale or transfer, file
20 a notice of sale or transfer of business assets with the
21 Chicago office of the Department disclosing the name and
22 address of the seller or transferor, the name and address of
23 the purchaser or transferee, the date of the sale or
24 transfer, a copy of the sales contract and financing
25 agreements which shall include a description of the property
26 sold, the amount of the purchase price or a statement of
27 other consideration for the sale or transfer, the terms for
28 payment of the purchase price, and such other information as
29 the Department may reasonably require. If the purchaser or
30 transferee fails to file the above described notice of sale
31 with the Department within the prescribed time, the purchaser
32 or transferee shall be personally liable for the amount owed
33 hereunder by the seller or transferor to the Department up to
-656- LRB9000671KDdvA
1 the amount of the reasonable value of the property acquired
2 by the purchaser or transferee. The seller or transferor
3 shall pay the Department the amount of tax, penalty and
4 interest (if any) due from him under this Code up to the date
5 of the payment of tax. The seller or transferor, or the
6 purchaser or transferee, at least 10 days before the date of
7 the sale or transfer, may notify the Department of the
8 intended sale or transfer and request the Department to audit
9 the books and records of the seller or transferor, or to do
10 whatever else may be necessary to determine how much the
11 seller or transferor owes to the Department hereunder up to
12 the date of the sale or transfer. The Department shall take
13 such steps as may be appropriate to comply with such request.
14 Any order issued by the Department pursuant to this
15 Section to withhold from the purchase price shall be issued
16 within 10 days after the Department receives notification of
17 a sale as provided in this Section. The purchaser or
18 transferee shall withhold such portion of the purchase price
19 as may be directed by the Department, but not to exceed a
20 minimum amount varying by type of business, as determined by
21 the Department pursuant to regulations, plus twice the
22 outstanding unpaid liabilities and twice the average
23 liability of preceding filings times the number of unfiled
24 returns, to cover the amount of all tax, penalty and interest
25 due and unpaid by the seller or transferor under this Code
26 or, if the payment of money or property is not involved,
27 shall withhold the performance of the condition that
28 constitutes the consideration for the sale or transfer.
29 Within 60 days after issuance of the initial order to
30 withhold, the Department shall provide written notice to the
31 purchaser or transferee of the actual amount of all taxes,
32 penalties and interest then due and whether or not additional
33 amounts may become due as a result of unfiled returns,
34 pending assessments and audits not completed. The purchaser
-657- LRB9000671KDdvA
1 or transferee shall continue to withhold the amount directed
2 to be withheld by the initial order or such lesser amount as
3 is specified by the final withholding order or to withhold
4 the performance of the condition which constitutes the
5 consideration for the sale or transfer until the purchaser
6 or transferee receives from the Department a certificate
7 showing that such tax, penalty and interest have been paid or
8 a certificate from the Department showing that no tax,
9 penalty or interest is due from the seller or transferor
10 under this Code.
11 The purchaser or transferee is relieved of any duty to
12 continue to withhold from the purchase price and of any
13 liability for tax, penalty or interest due hereunder from the
14 seller or transferor if the Department fails to notify the
15 purchaser or transferee in the manner provided herein of the
16 amount to be withheld within 10 days after the sale or
17 transfer has been reported to the Department or within 60
18 days after issuance of the initial order to withhold, as the
19 case may be. The Department shall have the right to determine
20 amounts claimed on an estimated basis to allow for non-filed
21 periods, pending assessments and audits not completed,
22 however the purchaser or transferee shall be personally
23 liable only for the actual amount due when determined.
24 If the seller or transferor fails to pay the tax, penalty
25 and interest (if any) due from him hereunder and the
26 Department makes timely claim therefor against the purchaser
27 or transferee as hereinabove provided, then the purchaser or
28 transferee shall pay the amount so withheld from the purchase
29 price to the Department. If the purchaser or transferee fails
30 to comply with the requirements of this Section, the
31 purchaser or transferee shall be personally liable to the
32 Department for the amount owed hereunder by the seller or
33 transferor to the Department up to the amount of the
34 reasonable value of the property acquired by the purchaser or
-658- LRB9000671KDdvA
1 transferee.
2 Any person who shall acquire any property or rights
3 thereto which, at the time of such acquisition, is subject to
4 a valid lien in favor of the Department shall be personally
5 liable to the Department for a sum equal to the amount of
6 taxes secured by such lien but not to exceed the reasonable
7 value of such property acquired by him.
8 Section 90-30. Tax stated as distinct item from selling
9 price.
10 (a) The use tax imposed by Article 15 shall when
11 collected be stated as a distinct item separate and apart
12 from the selling price of the tangible personal property.
13 However, where it is not possible to state the sales tax
14 separately in situations such as sales from vending machines
15 or sales of liquor by the drink the Department may by rule
16 exempt such sales from this requirement so long as purchasers
17 are notified by a sign that the tax is included in the
18 selling price.
19 (b) For purposes of the service use tax, except as
20 provided in subsection (c) of this Section, the selling price
21 of each item of tangible personal property transferred
22 incident to a sale of service may be stated as a distinct
23 item by the serviceman to the service customer and the
24 service use tax imposed by Article 25 shall when collected be
25 stated as a distinct item separate and apart from the selling
26 price of the tangible personal property. If the selling
27 price of each item of tangible personal property transferred
28 incidental to a sale of service is not stated as a separate
29 item on the serviceman's billing to the service customer,
30 then the service use tax imposed by Article 25 shall be based
31 on 50% of the serviceman's entire billing to the service
32 customer.
33 (c) For purposes of the service use tax, when a
-659- LRB9000671KDdvA
1 serviceman contracts to design, develop and produce special
2 order machinery or equipment, the service use tax imposed by
3 Article 25 shall be based on the serviceman's cost price of
4 the tangible personal property transferred incident to the
5 completion of the contract.
6 PART 20. SERVICE OCCUPATION TAX ACT
7 DISPOSITION CHART
8 SERVICE OCCUPATION TAX ACT
9 Service Occupation
10 Tax Act (35/115) Occupation and Use Tax Code
11 -------------------------------------------------------------
12 Sec. 2. Sec. 5-140. Transfer
13 Sec. 5-30. Cost price
14 Sec. 5-35. Department
15 Sec. 5-65. Person
16 Sec. 30-235. Sale of service
17 Sec. 30-170. Property sold for charity,
18 religion, or education
19 Sec. 30-140. Rolling stock; personal
20 property
21 Sec. 30-145. Rolling stock; proceeds
22 from sales
23 Sec. 30-135. Property sold to rail common
24 carrier
25 Sec. 30-95. Manufacturing and assembling
26 machinery
27 Sec. 30-70. Distillation machinery and
28 equipment
29 Sec. 30-240. Election not to be sale of
30 service
-660- LRB9000671KDdvA
1 Sec. 30-245. Maintenance agreement
2 Sec. 30-100. Manufacturing and assembling
3 exemption
4 Sec. 30-155. Personal property sold by
5 students
6 Sec. 5-125. Serviceman
7 Sec. 5-115. Sale at retail
8 Sec. 5-135. Supplier
9 Sec. 2a. Sec. 5-75. Pollution control facilities
10 Sec. 30-5. Pollution control facilities
11 Sec. 2b. Sec. 5-60. Low sulfur dioxide emission
12 coal fueled devices
13 Sec. 30-15. Low sulfur dioxide emission
14 coal fueled devices
15 Sec. 90-45. Low sulfur dioxide emission
16 coal fueled devices;
17 declaratory provisions
18 Sec. 2c. Sec. 5-25. Corporations organized for
19 educational purposes
20 Sec. 3. Sec. 20-5. Tax imposed
21 Sec. 3-5(1). Sec. 30-165. Property sold for the benefit
22 of the elderly
23 Sec. 3-5(2). Sec. 30-175. County fair association
24 Sec. 3-5(3). Sec. 30-160. Property sold to non-profit
25 music organization
26 Sec. 3-5(4). Sec. 30-205. Legal tender
27 Sec. 3-5(5). Sec. 30-90. Graphic arts machinery
28 and equipment
29 Sec. 3-5(6). Sec. 30-155. Personal property sold by
-661- LRB9000671KDdvA
1 students
2 Sec. 3-5(7). Sec. 30-65. Farm machinery and equipment
3 Sec. 3-5(8). Sec. 30-125. Petroleum products sold to
4 air carrier
5 Sec. 3-5(9). Sec. 30-200. Mandatory service charge
6 Sec. 3-5(10). Sec. 30-75. Oil field equipment
7 Sec. 3-5(11). Sec. 30-85. Photoprocessing machinery
8 and equipment
9 Sec. 3-5(12). Sec. 30-80. Coal exploration equipment
10 Sec. 3-5(13). Sec. 30-195. Food and drug sold by
11 non-profit organization
12 Sec. 3-5(14). Sec. 30-55. Semen
13 Sec. 3-5(15). Sec. 30-50. Horses
14 Sec. 3-5(17). Sec. 30-190. Property sold for lease to
15 government
16 Sec. 3-5(18). Sec. 30-180. Property donated for
17 disaster relief
18 Sec. 3-5(19). Sec. 30-45. Property used in
19 infrastructure repairs
20 Sec. 3-5.5. Sec. 30-195. Food and drug sold by
21 non-profit organization
22 Sec. 3-10. Sec. 20-15. Rate of tax
23 Sec. 3-15. Sec. 5-70. Photoprocessing
24 Sec. 3-20. Sec. 5-15. Bullion
25 Sec. 3-25. Sec. 5-20. Computer software
-662- LRB9000671KDdvA
1 Sec. 3-30. Sec. 5-45. Graphic arts production
2 Sec. 3-35. Sec. 5-80. Production agriculture
3 Sec. 3-40. Sec. 20-20. Collection
4 Sec. 3-45. Sec. 30-215. Interstate commerce exemption
5 Sec. 3-50. Sec. 90-15. Liability because of
6 amendatory Act
7 Sec. 3-55. Sec. 90-20. Sunset of exemptions, credits,
8 and deductions
9 Sec. 4. Sec. 90-25. Delivery in State
10 Sec. 5. Sec. 60-20. Receipts; list of agents
11 Sec. 6. Sec. 35-15. Service occupation tax
12 Sec. 35-30. Issuance of certificate of
13 registration
14 Sec. 60-10. Foreign retailers; permit to
15 collect tax
16 Sec. 7. Sec. 80-20. Advertisement of tax
17 absorption
18 Sec. 8. Sec. 60-5. Tax collected as debt owed to
19 State; exception
20 Sec. 9. Sec. 50-110. Payment of tax by retailer or
21 serviceman
22 Sec. 50-115. Conditional sales contract
23 Sec. 50-20. Service occupation tax returns
24 Sec. 50-30. Quarterly returns
25 Sec. 50-40. Failure to sign a return
26 Sec. 50-160. Manufacturer's Purchase Credit
27 Sec. 50-35. Filing returns quarterly or
28 annually
29 Sec. 50-60. Cessation of business
-663- LRB9000671KDdvA
1 Sec. 50-100. Electronic funds transfer
2 Sec. 50-105. Refunds
3 Sec. 50-65. Multiple businesses
4 Sec. 85-15. Disposition of service
5 occupation
6 tax receipts
7 Sec. 85-25. Build Illinois Fund
8 Sec. 85-30. McCormick Place Expansion
9 Project Fund
10 Sec. 50-95. Annual information return
11 Sec. 50-135. Manufacturer, importer, or
12 wholesaler payment
13 Sec. 10a. Sec. 35-70. Exemption from bonding
14 Sec. 11. Sec. 45-15. Records; taxes
15 Sec. 12. Sec. 90-40. Applicability of Uniform
16 Penalty and Interest Act
17 Sec. 13. Sec. 90-5. Appointment of Secretary
18 of State
19 Sec. 15. Sec. 80-10. Violations
20 Sec. 16. Sec. 20-10. Tax additional
21 Sec. 17. Sec. 55-10. Erroneous payment; credit or
22 refund; taxes
23 Sec. 55-15. Credit or refund; payment and
24 interest
25 Sec. 55-20. Claims for credit or refund
26 Sec. 18. Sec. 55-25. Determination of claim;
27 hearing
28 Sec. 55-30. Final determination of claim
29 Sec. 19. Sec. 55-35. Limitations
-664- LRB9000671KDdvA
1 Sec. 20. Sec. 55-40. Application of credit or
2 refund against tax
3 Sec. 20a. Sec. 75-5. Application of Administrative
4 Procedure Act
5 Sec. 21. Sec. 90-35. Severability
6 (35 ILCS 115/) (Service Occupation Tax Act.)
7 Title: An Act to impose a tax on persons engaged in the
8 business of making sales of service.
9 Cite: 35 ILCS 115/1 et seq.
10 From: Ch. 120, par. 439.101 et seq.
11 Source: L. 1961, p. 1745.
12 Date: Approved July 10, 1961.
13 Short title: Service Occupation Tax Act.
14 (35 ILCS 115/1) (from Ch. 120, par. 439.101)
15 Section 1-1. Short title. Sec. 1. This Act shall be
16 known and may be cited as the Occupation and Use Tax Code
17 "Service Occupation Tax Act", and the tax imposed by this Act
18 may be referred to as the "Service Occupation Tax".
19 (Source: Laws 1961, p. 1745.)
20 (35 ILCS 115/2) (from Ch. 120, par. 439.102)
21 Section 5-140. Transfer. For purposes of the service
22 occupation tax, Sec. 2. "transfer" means any transfer of the
23 title to property or of the ownership of property whether or
24 not the transferor retains title as security for the payment
25 of amounts due him from the transferee.
26 Section 5-30. Cost price. For purposes of the service
27 occupation tax and the service use tax, "cost price" means
28 the consideration paid by the serviceman for a purchase
29 valued in money, whether paid in money or otherwise,
-665- LRB9000671KDdvA
1 including cash, credits and services, and shall be determined
2 without any deduction on account of the supplier's cost of
3 the property sold or on account of any other expense incurred
4 by the supplier. When a serviceman contracts out part or all
5 of the services required in his sale of service, it shall be
6 presumed that the cost price to the serviceman of the
7 property transferred to him or her by his or her
8 subcontractor is equal to 50% of the subcontractor's charges
9 to the serviceman in the absence of proof of the
10 consideration paid by the subcontractor for the purchase of
11 such property.
12 Section 5-35. Department. "Department" means the
13 Department of Revenue.
14 Section 5-65. Person. "Person" means any natural
15 individual, firm, partnership, association, joint stock
16 company, joint venture, public or private corporation,
17 limited liability company, or a and any receiver, executor,
18 trustee, guardian or other representative appointed by order
19 of any court.
20 Section 30-235. Sale of service. For purposes of the
21 service occupation tax and the service use tax, "sale of
22 service" means any transaction except:
23 (1) (a) a retail sale of tangible personal property
24 taxable under Article 10 or Article 15 the Retailers'
25 Occupation Tax Act or under the Use Tax Act.
26 (2) (b) a sale of tangible personal property for
27 the purpose of resale made in compliance with Section
28 35-50 2c of the Retailers' Occupation Tax Act.
29 (3)(d-4) for purposes of the service occupation tax
30 only, until January 1, 1997, a sale, by a registered
31 serviceman paying service occupation tax to the
-666- LRB9000671KDdvA
1 Department, of special order printed materials delivered
2 outside Illinois and which are not returned to this
3 State, if delivery is made by the seller or agent of the
4 seller, including an agent who causes the product to be
5 delivered outside Illinois by a common carrier or the
6 U.S. postal service.
7 Section 30-170. Personal property sold to charitable,
8 religious, or educational organizations.
9 (a) For purposes of the retailers' occupation tax and the
10 use tax, personal property sold to or purchased by a
11 governmental body, to a corporation, society, association,
12 foundation, or institution organized and operated exclusively
13 for charitable, religious, or educational purposes, or to a
14 not-for-profit corporation, society, association, foundation,
15 institution, or organization that has no compensated officers
16 or employees and that is organized and operated primarily for
17 the recreation of persons 55 years of age or older is exempt.
18 A limited liability company may qualify for the exemption
19 under this subsection only if the limited liability company
20 is organized and operated exclusively for educational
21 purposes. On and after July 1, 1987, however, no entity
22 otherwise eligible for this exemption shall make tax-free
23 purchases unless it has an active exemption identification
24 number issued by the Department in accordance with Section
25 35-60 of this Code.
26 (b) For purposes of the service occupation tax and the
27 service use tax, "sale of service" shall not include, (c)
28 except as hereinafter provided, a sale or transfer of
29 tangible personal property as an incident to the rendering of
30 service for or by any governmental body or for or by any
31 corporation, society, association, foundation or institution
32 organized and operated exclusively for charitable, religious
33 or educational purposes or any not-for-profit corporation,
-667- LRB9000671KDdvA
1 society, association, foundation, institution or organization
2 which has no compensated officers or employees and which is
3 organized and operated primarily for the recreation of
4 persons 55 years of age or older. A limited liability company
5 may qualify for the exemption under this subsection paragraph
6 only if the limited liability company is organized and
7 operated exclusively for educational purposes. On and after
8 July 1, 1987, however, no entity otherwise eligible for the
9 exemption under this subsection shall make tax free purchases
10 unless it has an active exemption identification number
11 issued by the Department.
12 Section 30-140. Rolling stock; personal property.
13 (a) For purposes of the retailers' occupation tax and the
14 use tax, personal property sold to an interstate carrier for
15 hire for use as rolling stock moving in interstate commerce
16 or to lessors under leases of one year or longer executed or
17 in effect at the time of purchase by interstate carriers for
18 hire for use as rolling stock moving in interstate commerce
19 as long as so used by interstate carriers for hire and
20 equipment operated by a telecommunications provider, licensed
21 as a common carrier by the Federal Communications Commission,
22 which is permanently installed in or affixed to aircraft
23 moving in interstate commerce is exempt.
24 (b) For purposes of the service occupation tax and the
25 service use tax, "sale of service" shall not include (d) a
26 sale or transfer of tangible personal property as an incident
27 to the rendering of service for interstate carriers for hire
28 for use as rolling stock moving in interstate commerce or
29 lessors under leases of one year or longer, executed or in
30 effect at the time of purchase, to interstate carriers for
31 hire for use as rolling stock moving in interstate commerce
32 as long as so used by such interstate carriers for hire, and
33 equipment operated by a telecommunications provider, licensed
-668- LRB9000671KDdvA
1 as a common carrier by the Federal Communications Commission,
2 which is permanently installed in or affixed to aircraft
3 moving in interstate commerce.
4 Section 30-145. Rolling stock; proceeds from sales.
5 (a) For purposes of the retailers' occupation tax and the
6 use tax, proceeds from sales to owners, lessors, or shippers
7 of tangible personal property that is utilized by interstate
8 carriers for hire for use as rolling stock moving in
9 interstate commerce as long as so used by the interstate
10 carriers for hire, and equipment operated by a
11 telecommunications provider, licensed as a common carrier by
12 the Federal Communications Commission, which is permanently
13 installed in or affixed to aircraft moving in interstate
14 commerce are exempt.
15 (b) For purposes of the service occupation tax and the
16 service use tax, "sale of service" shall not include (d-1) a
17 sale or transfer of tangible personal property as an incident
18 to the rendering of service for owners, lessors or shippers
19 of tangible personal property which is utilized by interstate
20 carriers for hire for use as rolling stock moving in
21 interstate commerce as long as so used by such interstate
22 carriers for hire, and equipment operated by a
23 telecommunications provider, licensed as a common carrier by
24 the Federal Communications Commission, which is permanently
25 installed in or affixed to aircraft moving in interstate
26 commerce.
27 Section 30-135. Tangible personal property sold to rail
28 common carrier.
29 (a) For purposes of the retailers' occupation tax and the
30 use tax, tangible personal property sold to a common carrier
31 by rail that receives the physical possession of the property
32 in Illinois and that transports the property, or shares with
-669- LRB9000671KDdvA
1 another common carrier in the transportation of the property,
2 out of Illinois on a standard uniform bill of lading showing
3 the seller of the property as the shipper or consignor of the
4 property to a destination outside Illinois, for use outside
5 Illinois is exempt.
6 (b) For purposes of the service occupation tax and the
7 service use tax, "sale of service" shall not include (d-2)
8 the repairing, reconditioning or remodeling, for a common
9 carrier by rail, of tangible personal property which belongs
10 to such carrier for hire, and as to which such carrier
11 receives the physical possession of the repaired,
12 reconditioned or remodeled item of tangible personal property
13 in Illinois, and which such carrier transports, or shares
14 with another common carrier in the transportation of such
15 property, out of Illinois on a standard uniform bill of
16 lading showing the person who repaired, reconditioned or
17 remodeled the property as the shipper or consignor of such
18 property to a destination outside Illinois, for use outside
19 Illinois.
20 (c) For purposes of the service occupation tax and the
21 service use tax, "sale of service" shall not include (d-3) a
22 sale or transfer of tangible personal property which is
23 produced by the seller thereof on special order in such a way
24 as to have made the applicable tax the service occupation tax
25 or the service use tax, rather than the retailers' occupation
26 tax or the use tax, for an interstate carrier by rail which
27 receives the physical possession of such property in
28 Illinois, and which transports such property, or shares with
29 another common carrier in the transportation of such
30 property, out of Illinois on a standard uniform bill of
31 lading showing the seller of the property as the shipper or
32 consignor of such property to a destination outside Illinois,
33 for use outside Illinois.
34 (d-4) Until January 1, 1997, a sale, by a registered
-670- LRB9000671KDdvA
1 serviceman paying tax under this Act to the Department, of
2 special order printed materials delivered outside Illinois
3 and which are not returned to this State, if delivery is made
4 by the seller or agent of the seller, including an agent who
5 causes the product to be delivered outside Illinois by a
6 common carrier or the U.S. postal service.
7 Section 30-95. Manufacturing and assembling machinery
8 and equipment.
9 (a) For purposes of the retailers' occupation tax and
10 the use tax, machinery and equipment that will be used by the
11 purchaser, or a lessee of the purchaser, primarily in the
12 process of manufacturing or assembling tangible personal
13 property for wholesale or retail sale or lease, whether the
14 sale or lease is made directly by the manufacturer or by some
15 other person, whether the materials used in the process are
16 owned by the manufacturer or some other person, or whether
17 the sale or lease is made apart from or as an incident to the
18 seller's engaging in the service occupation of producing
19 machines, tools, dies, jigs, patterns, gauges, or other
20 similar items of no commercial value on special order for a
21 particular purchaser is exempt.
22 (b) For purposes of the service occupation tax and
23 service use tax, "sale of service" shall not include (e) a
24 sale or transfer of machinery and equipment used primarily in
25 the process of the manufacturing or assembling, either in an
26 existing, an expanded or a new manufacturing facility, of
27 tangible personal property for wholesale or retail sale or
28 lease, whether such sale or lease is made directly by the
29 manufacturer or by some other person, whether the materials
30 used in the process are owned by the manufacturer or some
31 other person, or whether such sale or lease is made apart
32 from or as an incident to the seller's engaging in a service
33 occupation and the applicable tax is a service use tax or
-671- LRB9000671KDdvA
1 service occupation tax, rather than use tax or retailers'
2 occupation tax Service Occupation Tax or Service Use Tax,
3 rather than Retailers' Occupation Tax or Use Tax.
4 Section 30-70. Distillation machinery and equipment.
5 (a) For purposes of the retailers' occupation tax and the
6 use tax, distillation machinery and equipment, sold as a unit
7 or kit, assembled or installed by the retailer, certified by
8 the user to be used only for the production of ethyl alcohol
9 that will be used for consumption as motor fuel or as a
10 component of motor fuel for the personal use of the user, and
11 not subject to sale or resale is exempt.
12 (b) For purposes of the service occupation tax and the
13 service use tax, "sale of service" shall not include (f) a
14 the sale or transfer of distillation machinery and equipment,
15 sold as a unit or kit and assembled or installed by the
16 retailer, which machinery and equipment is certified by the
17 user to be used only for the production of ethyl alcohol that
18 will be used for consumption as motor fuel or as a component
19 of motor fuel for the personal use of such user and not
20 subject to sale or resale.
21 Section 30-240. Election not to be sale of service. For
22 purposes of the service occupation tax and the service use
23 tax, "sale of service" shall not include, (g) at the election
24 of any serviceman not required to be otherwise registered as
25 a retailer under Sections 35-5 through 35-45 Section 2a of
26 the Retailers' Occupation Tax Act, made for each fiscal year
27 sales of service in which the aggregate annual cost price of
28 tangible personal property transferred as an incident to the
29 sales of service is less than 35%, or (75% in the case of
30 servicemen transferring prescription drugs or servicemen
31 engaged in graphic arts production,) of the aggregate annual
32 total gross receipts from all sales of service. The purchase
-672- LRB9000671KDdvA
1 of such tangible personal property by the serviceman shall be
2 subject to the retailers' occupation tax and the use tax
3 under the Retailers' Occupation Tax Act and the Use Tax Act.
4 However, if a primary serviceman who has made the election
5 described in this Section paragraph subcontracts service work
6 to a secondary serviceman who has also made the election
7 described in this Section paragraph, the primary serviceman
8 does not incur a use tax liability if the secondary
9 serviceman (i) has paid or will pay use tax on his or her
10 cost price of any tangible personal property transferred to
11 the primary serviceman and (ii) certifies that fact in
12 writing to the primary serviceman.
13 Section 30-245. Maintenance agreement. Tangible personal
14 property transferred incident to the completion of a
15 maintenance agreement is exempt from the taxes tax imposed
16 pursuant to Article 20 and Article 25 this Act.
17 Section 30-100. Manufacturing and assembling exemption.
18 (a) For purposes of the retailers' occupation tax and
19 the use tax, the manufacturing and assembling machinery and
20 equipment exemption includes machinery and equipment that
21 replaces machinery and equipment in an existing manufacturing
22 facility as well as machinery and equipment that are for use
23 in an expanded or new manufacturing facility. The
24 manufacturing and assembling machinery and equipment
25 exemption includes the sale of materials to a purchaser who
26 produces exempted types of machinery, equipment, or tools and
27 who rents or leases that machinery, equipment, or tools to a
28 manufacturer of tangible personal property. This exemption
29 also includes the sale of materials to a purchaser who
30 manufactures those materials into an exempted type of
31 machinery, equipment, or tools that the purchaser uses
32 himself or herself in the manufacturing of tangible personal
-673- LRB9000671KDdvA
1 property. For purposes of the use tax, this exemption also
2 includes the sale of exempted types of machinery or equipment
3 to a purchaser who is not the manufacturer, but who rents or
4 leases the use of the property to a manufacturer.
5 (b) For purposes of this Code, the machinery and
6 equipment exemption Exemption (e) also includes machinery and
7 equipment used in the general maintenance or repair of such
8 exempt machinery and equipment or for in-house manufacture of
9 exempt machinery and equipment. For the purposes of this
10 exemption (e), each of these terms shall have the following
11 meanings:
12 (1) "Manufacturing process" means shall mean the
13 production of an any article of tangible personal
14 property, whether the such article is a finished product
15 or an article for use in the process of manufacturing or
16 assembling a different article of tangible personal
17 property, by a procedure procedures commonly regarded as
18 manufacturing, processing, fabricating, or refining that
19 which changes some existing material or materials into a
20 material with a different form, use, or name. In
21 relation to a recognized integrated business composed of
22 a series of operations that which collectively constitute
23 manufacturing, or individually constitute manufacturing
24 operations, the manufacturing process commences shall be
25 deemed to commence with the first operation or stage of
26 production in the series, and does not shall not be
27 deemed to end until the completion of the final product
28 in the last operation or stage of production in the
29 series.; and further For purposes of this exemption (e),
30 photoprocessing is deemed to be a manufacturing process
31 of tangible personal property for wholesale or retail
32 sale.;
33 (2) "Assembling process" means shall mean the
34 production of an any article of tangible personal
-674- LRB9000671KDdvA
1 property, whether the such article is a finished product
2 or an article for use in the process of manufacturing or
3 assembling a different article of tangible personal
4 property, by the combination of existing materials in a
5 manner commonly regarded as assembling that which results
6 in an article or a material of a different form, use, or
7 name.;
8 (3) "Machinery" means shall mean major mechanical
9 machines or major components of those such machines
10 contributing to a manufacturing or assembling process.;
11 and
12 (4) "Equipment" includes an shall include any
13 independent device or tool separate from any machinery
14 but essential to an integrated manufacturing or assembly
15 process; including computers used primarily in operating
16 exempt machinery and equipment in a computer assisted
17 design, computer assisted manufacturing (CAD/CAM) system;
18 or any subunit or assembly comprising a component of any
19 machinery or auxiliary, adjunct or attachment parts of
20 machinery, such as tools, dies, jigs, fixtures, patterns,
21 and molds; and or any parts that which require periodic
22 replacement in the course of normal operation; but does
23 shall not include hand tools.
24 (c) For purposes of this Code, the purchaser of the such
25 machinery and equipment who has an active resale registration
26 number shall furnish that such number to the seller at the
27 time of purchase. For purposes of the retailers' occupation
28 tax and the service occupation tax, a The purchaser of the
29 such machinery, and equipment, and tools without an active
30 resale registration number shall furnish to the seller a
31 certificate of exemption for each transaction stating facts
32 establishing the exemption for that transaction. For purposes
33 of the use tax and the service use tax, a user of the
34 machinery, equipment, or tools without an active resale
-675- LRB9000671KDdvA
1 registration number shall prepare a certificate of exemption
2 for each transaction stating facts establishing the exemption
3 for that transaction. That, which certificate shall be
4 available to the Department for inspection or audit. The
5 Department shall prescribe the form of the certificate.
6 Informal rulings, opinions, or letters issued by the
7 Department in response to an inquiry or request for an
8 opinion from any person regarding the coverage and
9 applicability of this exemption to specific devices shall be
10 published, maintained as a public record, and made available
11 for public inspection and copying. If the informal ruling,
12 opinion, or letter contains trade secrets or other
13 confidential information, where possible, the Department
14 shall delete that information before publication. Whenever
15 informal rulings, opinions, or letters contain a policy of
16 general applicability, the Department shall formulate and
17 adopt that policy as a rule in accordance with the Illinois
18 Administrative Procedure Act.
19 Section 30-150. Rolling stock exemption. The rolling
20 stock exemption applies to rolling stock used by an
21 interstate carrier for hire, even just between points in
22 Illinois, if the such rolling stock transports, for hire,
23 persons whose journeys or property whose shipments originate
24 or terminate outside Illinois.
25 Any informal rulings, opinions or letters issued by the
26 Department in response to an inquiry or request for any
27 opinion from any person regarding the coverage and
28 applicability of exemption (e) to specific devices shall be
29 published, maintained as a public record, and made available
30 for public inspection and copying. If the informal ruling,
31 opinion or letter contains trade secrets or other
32 confidential information, where possible the Department shall
33 delete such information prior to publication. Whenever such
-676- LRB9000671KDdvA
1 informal rulings, opinions, or letters contain any policy of
2 general applicability, the Department shall formulate and
3 adopt such policy as a rule in accordance with the provisions
4 of the Illinois Administrative Procedure Act.
5 On and after July 1, 1987, no entity otherwise eligible
6 under exemption (c) of this Section shall make tax free
7 purchases unless it has an active exemption identification
8 number issued by the Department.
9 Section 5-125. Serviceman. "Serviceman" means any person
10 who is engaged in the occupation of making sales of service.
11 Section 5-115. Sale at retail.
12 (a) "Sale at retail" means any transfer of the ownership
13 of or title to tangible personal property to a purchaser, for
14 the purpose of use or consumption, and not for the purpose of
15 resale in any form as tangible personal property to the
16 extent not first subjected to a use for which it was
17 purchased, for a valuable consideration: provided that the
18 property purchased is deemed to be purchased for the purpose
19 of resale, despite first being used, to the extent to which
20 it is resold as an ingredient of an intentionally produced
21 product or byproduct of manufacturing. For this purpose,
22 slag produced as an incident to manufacturing pig iron or
23 steel and sold is considered to be an intentionally produced
24 byproduct of manufacturing. "Sale at retail" shall be
25 construed to include any transfer, whether made for or
26 without a valuable consideration, for resale in any form as
27 tangible personal property unless made in compliance with
28 Section 35-50 of this Code. Transactions whereby the
29 possession of the property is transferred but the seller
30 retains the title as security for payment of the selling
31 price shall be deemed to be sales.
32 "Sale at retail" shall be construed to include any
-677- LRB9000671KDdvA
1 Illinois florist's sales transaction in which the purchase
2 order is received in Illinois by a florist and the sale is
3 for use or consumption, but the Illinois florist has a
4 florist in another state deliver the property to the
5 purchaser or the purchaser's donee in such other state.
6 The purchase, employment and transfer of such tangible
7 personal property as newsprint and ink for the primary
8 purpose of conveying news (with or without other information)
9 is not a purchase, use or sale of service or of tangible
10 personal property.
11 (b) For purposes of the retailers' occupation tax, the
12 service occupation tax, and the service use tax, "sale at
13 retail" shall be construed to include any transfer of the
14 ownership of or title to tangible personal property to a
15 purchaser, for use or consumption by any other person to whom
16 such purchaser may transfer the tangible personal property
17 without a valuable consideration.
18 Sales of tangible personal property, which property, to
19 the extent not first subjected to a use for which it was
20 purchased, as an ingredient or constituent, goes into and
21 forms a part of tangible personal property subsequently the
22 subject of a "sale at retail", are not sales at retail as
23 defined in this Code: provided that the property purchased is
24 deemed to be purchased for the purpose of resale, despite
25 first being used, to the extent to which it is resold as an
26 ingredient of an intentionally produced product or byproduct
27 of manufacturing.
28 A person whose activities are organized and conducted
29 primarily as a not-for-profit service enterprise, and who
30 engages in selling tangible personal property at retail
31 (whether to the public or merely to members and their guests)
32 is engaged in the business of selling tangible personal
33 property at retail with respect to such transactions,
34 excepting only a person organized and operated exclusively
-678- LRB9000671KDdvA
1 for charitable, religious or educational purposes either (1)
2 to the extent of sales by such person to its members,
3 students, patients or inmates of tangible personal property
4 to be used primarily for the purposes of such person, or (2)
5 to the extent of sales by such person of tangible personal
6 property which is not sold or offered for sale by persons
7 organized for profit. The selling of school books and school
8 supplies by schools at retail to students is not "primarily
9 for the purposes of" the school which does such selling. The
10 provisions of this paragraph shall not apply to nor subject
11 to taxation occasional dinners, socials or similar activities
12 of a person organized and operated exclusively for
13 charitable, religious or educational purposes, whether or not
14 such activities are open to the public.
15 A person who is the recipient of a grant or contract
16 under Title VII of the Older Americans Act of 1965 (P.L.
17 92-258) and serves meals to participants in the federal
18 Nutrition Program for the Elderly in return for contributions
19 established in amount by the individual participant pursuant
20 to a schedule of suggested fees as provided for in the
21 federal Act is not engaged in the business of selling
22 tangible personal property at retail with respect to such
23 transactions.
24 The isolated or occasional sale of tangible personal
25 property at retail by a person who does not hold himself out
26 as being engaged (or who does not habitually engage) in
27 selling such tangible personal property at retail, or a sale
28 through a bulk vending machine, does not constitute engaging
29 in a business of selling such tangible personal property at
30 retail within the meaning of this Code; provided that any
31 person who is engaged in a business which is not subject to
32 the taxes imposed by this Code because of involving the sale
33 of or a contract to sell real estate or a construction
34 contract to improve real estate or a construction contract to
-679- LRB9000671KDdvA
1 engineer, install, and maintain an integrated system of
2 products, but who, in the course of conducting such business,
3 transfers tangible personal property to users or consumers in
4 the finished form in which it was purchased, and which does
5 not become real estate or was not engineered and installed,
6 under any provision of a construction contract or real estate
7 sale or real estate sales agreement entered into with some
8 other person arising out of or because of such nontaxable
9 business, is engaged in the business of selling tangible
10 personal property at retail to the extent of the value of the
11 tangible personal property so transferred. If, in such a
12 transaction, a separate charge is made for the tangible
13 personal property so transferred, the value of such property,
14 for the purpose of this Code, shall be the amount so
15 separately charged, but not less than the cost of such
16 property to the transferor; if no separate charge is made,
17 the value of such property, for the purposes of this Code, is
18 the cost to the transferor of such tangible personal
19 property. Construction contracts for the improvement of real
20 estate consisting of engineering, installation, and
21 maintenance of voice, data, video, security, and all
22 telecommunication systems do not constitute engaging in a
23 business of selling tangible personal property at retail
24 within the meaning of this Code if they are sold at one
25 specified contract price.
26 A person who holds himself or herself out as being
27 engaged (or who habitually engages) in selling tangible
28 personal property at retail is a person engaged in the
29 business of selling tangible personal property at retail
30 hereunder with respect to such sales (and not primarily in a
31 service occupation) notwithstanding the fact that such person
32 designs and produces such tangible personal property on
33 special order for the purchaser and in such a way as to
34 render the property of value only to such purchaser, if such
-680- LRB9000671KDdvA
1 tangible personal property so produced on special order
2 serves substantially the same function as stock or standard
3 items of tangible personal property that are sold at retail.
4 Persons who engage in the business of transferring
5 tangible personal property upon the redemption of trading
6 stamps are engaged in the business of selling such property
7 at retail and shall be liable for and shall pay the tax
8 imposed by this Code on the basis of the retail value of the
9 property transferred upon redemption of such stamps.
10 "Sale at Retail" means "sale at retail" as defined in the
11 Retailers' Occupation Tax Act.
12 Section 5-135. Supplier. For purposes of the service
13 occupation tax and the service use tax, "supplier" means any
14 person who makes sales of tangible personal property to
15 servicemen for the purpose of resale as an incident to a sale
16 of service.
17 (Source: P.A. 88-480; 88-505; 88-526; 88-547; 88-670, eff.
18 12-2-94; 89-675, eff. 8-14-96.)
19 (35 ILCS 115/2a) (from Ch. 120, par. 439.102a)
20 Section 5-75. Pollution control facilities. Sec. 2a.
21 "Pollution control facilities" means any system, method,
22 construction, device or appliance appurtenant thereto (i)
23 used in this State and acquired as an incident to the
24 purchase of a service from a serviceman, (ii) transferred by
25 a serviceman, or (iii) sold, used, or intended: (I) for the
26 primary purpose of eliminating, preventing, or reducing air
27 and water pollution as the term "air pollution" or "water
28 pollution" is defined in the "Environmental Protection Act",
29 enacted by the 76th General Assembly, or (II) for the primary
30 purpose of treating, pretreating, modifying or disposing of
31 any potential solid, liquid or gaseous pollutant which if
32 released without such treatment, pretreatment, modification
-681- LRB9000671KDdvA
1 or disposal might be harmful, detrimental or offensive to
2 human, plant or animal life, or to property.
3 Section 30-5. Pollution control facilities. The
4 purchase, employment and transfer of such tangible personal
5 property as pollution control facilities, as defined in
6 Section 5-75, is not shall not be deemed to be (i) a
7 purchase, use or sale of service or of tangible personal
8 property or (ii) a purchase, use, or sale of service, but
9 shall be deemed to be intangible personal property.
10 (Source: P. A. 76-2449.)
11 (35 ILCS 115/2b) (from Ch. 120, par. 439.102b)
12 Section 5-60. Low sulfur dioxide emission coal fueled
13 devices. Sec. 2b. "Low sulfur dioxide emission coal fueled
14 devices" means any device sold or used or intended for the
15 purpose of burning, combusting or converting locally
16 available coal in a manner which eliminates or significantly
17 reduces the need for additional sulfur dioxide abatement that
18 would otherwise be required under State or federal air
19 emission standards. Such device includes all machinery,
20 equipment, structures and all related apparatus of a coal
21 gasification facility, including coal feeding equipment,
22 designed to convert locally available coal into a low sulfur
23 gaseous fuel and to manage all waste and byproduct streams.
24 Section 30-15. Low sulfur dioxide emission coal fueled
25 devices. The purchase, employment and transfer of such
26 tangible personal property as low sulfur dioxide emission
27 coal fueled devices, as defined in Section 5-60, is not a
28 purchase, use, or sale of tangible personal property.
29 Section 90-45. Low sulfur dioxide emission coal fueled
30 devices; declaratory provisions. The amendatory provisions of
-682- LRB9000671KDdvA
1 Public Act 82-672 concerning low sulfur dioxide emission coal
2 fueled devices, as those provisions appeared in Section 1a-1
3 of the Retailers' Occupation Tax Act, Section 2a-1 of the Use
4 Tax Act, Section 2b of the Service Occupation Tax Act, and
5 Section 2b of the Service Use Tax Act, (now Sections 5-60 and
6 30-5 of this Code) are This amendatory Act of 1981 is not
7 intended to nor do they does it make any change in the
8 meaning of any provision in those Sections this Section but
9 are is intended to remove possible ambiguities, thereby
10 confirming the existing meaning of those Sections this
11 Section in effect prior to October 28, 1981 the effective
12 date of this amendatory Act of 1981.
13 (Source: P.A. 87-435.)
14 (35 ILCS 115/2c) (from Ch. 120, par. 439.102c)
15 Section 5-25. Corporation, limited liability company,
16 society, association, foundation, or institution organized
17 and operated exclusively for educational purposes.
18 (a) Sec. 2c. For purposes of this Act, A corporation,
19 limited liability company, society, association, foundation
20 or institution organized and operated exclusively for
21 educational purposes shall include: all tax-supported public
22 schools; private schools which offer systematic instruction
23 in useful branches of learning by methods common to public
24 schools and which compare favorably in their scope and
25 intensity with the course of study presented in tax-supported
26 schools; licensed day care centers as defined in Section 2.09
27 of the Child Care Act of 1969 which are operated by a
28 not-for-profit corporation, society, association, foundation,
29 institution or organization; vocational or technical schools
30 or institutes organized and operated exclusively to provide a
31 course of study of not less than 6 weeks duration and
32 designed to prepare individuals to follow a trade or to
33 pursue a manual, technical, mechanical, industrial, business
-683- LRB9000671KDdvA
1 or commercial occupation.
2 However, a corporation, limited liability company,
3 society, association, foundation or institution organized and
4 operated for the purpose of offering professional, trade or
5 business seminars of short duration, self-improvement or
6 personality development courses, courses which are
7 avocational or recreational in nature, courses pursued
8 entirely by open circuit television or radio, correspondence
9 courses, or courses which do not provide specialized training
10 within a specific vocational or technical field shall not be
11 considered to be organized and operated exclusively for
12 educational purposes.
13 (b) For purposes of the retailers' occupation tax, the
14 use tax, and the service occupation tax, a corporation,
15 limited liability company, society, association, foundation,
16 or institution organized and operated exclusively for
17 educational purposes shall also include licensed day care
18 centers as defined in Section 2.09 of the Child Care Act of
19 1969 which are operated by a not-for-profit corporation,
20 society, association, foundation, institution, or
21 organization.
22 (Source: P.A. 88-480.)
23 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
24 Section 20-5. Sec. 3. Tax imposed. A tax is imposed
25 upon all persons engaged in the business of making sales of
26 service (referred to as "servicemen") on all tangible
27 personal property transferred as an incident of a sale of
28 service, including computer software, and including
29 photographs, negatives, and positives that are the product of
30 photoprocessing, but not including products of
31 photoprocessing produced for use in motion pictures for
32 public commercial exhibition. The tax imposed in this Article
33 shall be known as the "service occupation tax".
-684- LRB9000671KDdvA
1 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
2 86-1028; 86-1475.)
3 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
4 Section 30-165. Personal property sold for the benefit
5 of persons 65 years of age or older. For purposes of the
6 taxes imposed by this Code, Sec. 3-5. Exemptions. The
7 following tangible personal property is exempt from the tax
8 imposed by this Act: (1) personal property sold by or
9 purchased from a corporation, society, association,
10 foundation, institution, or organization, other than a
11 limited liability company, that is organized and operated as
12 a not-for-profit service enterprise for the benefit of
13 persons 65 years of age or older if the personal property was
14 not purchased by the enterprise for the purpose of resale by
15 the enterprise is exempt.
16 Section 30-175. County fair association.
17 (a) For purposes of the retailers' occupation tax,
18 personal property sold to an Illinois county fair association
19 for use in conducting, operating, or promoting the county
20 fair is exempt.
21 (b) For purposes of the use tax, the service occupation
22 tax, and the service use tax, (2) personal property purchased
23 by a not-for-profit Illinois county fair association for use
24 in conducting, operating, or promoting the county fair is
25 exempt.
26 Section 30-160. Personal property sold to a
27 not-for-profit music or dramatic arts organization. For
28 purposes of the taxes imposed by this Code, (3) personal
29 property sold to or purchased by a any not-for-profit music
30 or dramatic arts organization that establishes, by proof
31 required by the Department by rule, that it has received an
-685- LRB9000671KDdvA
1 exemption under Section 501(c)(3) of the Internal Revenue
2 Code and that is organized and operated for the presentation
3 of live public performances of musical or theatrical works on
4 a regular basis is exempt.
5 Section 30-205. Legal tender. For purposes of the taxes
6 imposed by this Code, (4) legal tender, currency, medallions,
7 or gold or silver coinage issued by the State of Illinois,
8 the government of the United States of America, or the
9 government of any foreign country, and bullion are exempt.
10 Section 30-90. Graphic arts machinery and equipment.
11 For purposes of the taxes imposed by this Code, (5) graphic
12 arts machinery and equipment, including repair and
13 replacement parts, both new and used, and including that
14 manufactured on special order or purchased for lease,
15 certified by the purchaser to be used primarily for graphic
16 arts production is exempt.
17 Section 30-155. Personal property sold by students. For
18 purposes of the taxes imposed by this Code, (6) personal
19 property sold by or purchased from a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois is exempt.
22 Section 30-65. Farm machinery and equipment. For
23 purposes of the taxes imposed by this Code, (7) farm
24 machinery and equipment, both new and used, including that
25 manufactured on special order, certified by the purchaser to
26 be used primarily for production agriculture or State or
27 federal agricultural programs, including individual
28 replacement parts for the machinery and equipment, and
29 including machinery and equipment purchased for lease, but
30 excluding motor vehicles required to be registered under the
-686- LRB9000671KDdvA
1 Illinois Vehicle Code is exempt.
2 Section 30-125. Petroleum products sold to air carrier.
3 For purposes of the taxes imposed by this Code, (8) fuel and
4 petroleum products sold to or used by an air common carrier,
5 certified by the carrier to be used for consumption,
6 shipment, or storage in the conduct of its business as an air
7 common carrier, for a flight destined for or returning from a
8 location or locations outside the United States without
9 regard to previous or subsequent domestic stopovers are
10 exempt.
11 Section 30-200. Mandatory service charge. For purposes
12 of the taxes imposed by this Code, (9) proceeds of mandatory
13 service charges separately stated on customers' bills for the
14 purchase and consumption of food and beverages, to the extent
15 that the proceeds of the service charge are in fact turned
16 over as tips or as a substitute for tips to the employees who
17 participate directly in preparing, serving, hosting or
18 cleaning up the food or beverage function with respect to
19 which the service charge is imposed are exempt.
20 Section 30-75. Oil field equipment. For purposes of the
21 taxes imposed by this Code, (10) oil field exploration,
22 drilling, and production equipment, including (i) rigs and
23 parts of rigs, rotary rigs, cable tool rigs, and workover
24 rigs, (ii) pipe and tubular goods, including casing and drill
25 strings, (iii) pumps and pump-jack units, (iv) storage tanks
26 and flow lines, (v) any individual replacement part for oil
27 field exploration, drilling, and production equipment, and
28 (vi) machinery and equipment purchased for lease; but
29 excluding motor vehicles required to be registered under the
30 Illinois Vehicle Code is exempt.
-687- LRB9000671KDdvA
1 Section 30-85. Photoprocessing machinery and equipment.
2 For purposes of the taxes imposed by this Code, (11)
3 photoprocessing machinery and equipment, including repair and
4 replacement parts, both new and used, including that
5 manufactured on special order, certified by the purchaser to
6 be used primarily for photoprocessing, and including
7 photoprocessing machinery and equipment purchased for lease
8 is exempt.
9 Section 30-80. Coal exploration equipment. For purposes
10 of the taxes imposed by this Code, (12) coal exploration,
11 mining, offhighway hauling, processing, maintenance, and
12 reclamation equipment, including replacement parts and
13 equipment, and including equipment purchased for lease, but
14 excluding motor vehicles required to be registered under the
15 Illinois Vehicle Code is exempt.
16 Section 30-195. Food and drugs sold by not-for-profit
17 organizations; exemption.
18 (a) The Department shall not collect the 1% tax imposed
19 on food for human consumption that is to be consumed off the
20 premises where it is sold (other than alcoholic beverages,
21 soft drinks, and food that has been prepared for immediate
22 consumption) and prescription and nonprescription medicines,
23 drugs, medical appliances, and insulin, urine testing
24 materials, syringes, and needles used by diabetics, for human
25 use from any not-for-profit organization, that sells food in
26 a food distribution program at a price below the retail cost
27 of the food to purchasers who, as a condition of
28 participation in the program, are required to perform
29 community service, located in a county or municipality that
30 notifies the Department, in writing, that the county or
31 municipality does not want the tax to be collected from any
32 of such organizations located in the county or municipality.
-688- LRB9000671KDdvA
1 (b) For purposes of the service occupation tax, (13)
2 food for human consumption that is to be consumed off the
3 premises where it is sold (other than alcoholic beverages,
4 soft drinks and food that has been prepared for immediate
5 consumption) and prescription and nonprescription medicines,
6 drugs, medical appliances, and insulin, urine testing
7 materials, syringes, and needles used by diabetics, for human
8 use, when purchased for use by a person receiving medical
9 assistance under Article 5 of the Illinois Public Aid Code
10 who resides in a licensed long-term care facility, as defined
11 in the Nursing Home Care Act is exempt.
12 Section 30-55. Semen. For purposes of the taxes imposed
13 by this Code, (14) semen used for artificial insemination of
14 livestock for direct agricultural production is exempt.
15 Section 30-50. Horses. For purposes of the taxes
16 imposed by this Code, (15) horses, or interests in horses,
17 registered with and meeting the requirements of any of the
18 Arabian Horse Club Registry of America, Appaloosa Horse Club,
19 American Quarter Horse Association, United States Trotting
20 Association, or Jockey Club, as appropriate, used for
21 purposes of breeding or racing for prizes are exempt.
22 Section 30-185. Computers for hospitals.
23 (a) For purposes of the taxes imposed by this Code, (16)
24 computers and communications equipment utilized for any
25 hospital purpose and equipment used in the diagnosis,
26 analysis, or treatment of hospital patients sold to a lessor
27 who leases the equipment, under a lease of one year or longer
28 executed or in effect, for purposes of the retailers'
29 occupation tax and the service occupation tax, at the time of
30 the purchase, or, for purposes of the use tax and the service
31 use tax, at the time the lessor would otherwise be subject to
-689- LRB9000671KDdvA
1 the tax imposed by Article 15 or Article 25, to a hospital
2 that has been issued an active tax exemption identification
3 number by the Department under Section 35-60 are exempt 1g of
4 the Retailers' Occupation Tax Act.
5 (b) For purposes of the use tax and the service use tax,
6 if the equipment is leased in a manner that does not qualify
7 for this exemption or is used in any other non-exempt manner,
8 the lessor shall be liable for the tax imposed under Article
9 15 or Article 25, as the case may be, based on the fair
10 market value of the property at the time the non-qualifying
11 use occurs. No lessor shall collect or attempt to collect an
12 amount (however designated) that purports to reimburse that
13 lessor for the tax imposed by Article 15 or Article 25, as
14 the case may be, if the tax has not been paid by the lessor.
15 If a lessor improperly collects any such amount from the
16 lessee, the lessee shall have a legal right to claim a refund
17 of that amount from the lessor. If, however, that amount is
18 not refunded to the lessee for any reason, the lessor is
19 liable to pay that amount to the Department.
20 Section 30-190. Personal property sold to lessor for
21 lease to governmental body.
22 (a) For purposes of the taxes imposed by this Code, (17)
23 personal property sold to a lessor who leases the property,
24 under a lease of one year or longer executed or in effect,
25 for purposes of the retailers' occupation tax and the service
26 occupation tax, at the time of the purchase, or, for purposes
27 of the use tax and the service use tax, at the time the
28 lessor would otherwise be subject to the taxes imposed by
29 Article 15 or Article 25, to a governmental body that has
30 been issued an active tax exemption identification number by
31 the Department under Section 35-60 is exempt 1g of the
32 Retailers' Occupation Tax Act.
33 (b) For purposes of the use tax and the service use tax,
-690- LRB9000671KDdvA
1 if the property is leased in a manner that does not qualify
2 for this exemption or used in any other non-exempt manner,
3 the lessor shall be liable for the tax imposed under Article
4 15 or Article 25, as the case may be, based on the fair
5 market value of the property at the time the non-qualifying
6 use occurs. No lessor shall collect or attempt to collect an
7 amount (however designated) that purports to reimburse that
8 lessor for the tax imposed by Article 15 or Article 25, as
9 the case may be, if the tax has not been paid by the lessor.
10 If a lessor improperly collects any such amount from the
11 lessee, the lessee shall have a legal right to claim a refund
12 of that amount from the lessor. If, however, that amount is
13 not refunded to the lessee for any reason, the lessor is
14 liable to pay that amount to the Department.
15 Section 30-180. Personal property donated for disaster
16 relief. For purposes of the taxes imposed by this Code, (18)
17 beginning with taxable years ending on or after December 31,
18 1995 and ending with taxable years ending on or before
19 December 31, 2004, personal property that is donated for
20 disaster relief to be used in a State or federally declared
21 disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department, in accordance with
26 Section 35-60, that assists victims of the disaster who
27 reside within the declared disaster area is exempt.
28 Section 30-45. Personal property used in infrastructure
29 repairs. For purposes of the taxes imposed by this Code,
30 (19) beginning with taxable years ending on or after December
31 31, 1995 and ending with taxable years ending on or before
32 December 31, 2004, personal property that is used in the
-691- LRB9000671KDdvA
1 performance of infrastructure repairs in this State,
2 including but not limited to municipal roads and streets,
3 access roads, bridges, sidewalks, waste disposal systems,
4 water and sewer line extensions, water distribution and
5 purification facilities, storm water drainage and retention
6 facilities, and sewage treatment facilities, resulting from a
7 State or federally declared disaster in Illinois or bordering
8 Illinois when such repairs are initiated on facilities
9 located in the declared disaster area within 6 months after
10 the disaster is exempt.
11 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
12 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
13 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
14 eff. 8-9-96; revised 8-21-96.)
15 (35 ILCS 115/3-5.5)
16 Section 30-195. Sec. 3-5.5. Food and drugs sold by
17 not-for-profit organizations; exemption.
18 (a) The Department shall not collect the 1% tax imposed
19 on food for human consumption that is to be consumed off the
20 premises where it is sold (other than alcoholic beverages,
21 soft drinks, and food that has been prepared for immediate
22 consumption) and prescription and nonprescription medicines,
23 drugs, medical appliances, and insulin, urine testing
24 materials, syringes, and needles used by diabetics, for human
25 use from any not-for-profit organization, that sells food in
26 a food distribution program at a price below the retail cost
27 of the food to purchasers who, as a condition of
28 participation in the program, are required to perform
29 community service, located in a county or municipality that
30 notifies the Department, in writing, that the county or
31 municipality does not want the tax to be collected from any
32 of such organizations located in the county or municipality.
33 (b) For purposes of the service occupation tax, food for
-692- LRB9000671KDdvA
1 human consumption that is to be consumed off the premises
2 where it is sold (other than alcoholic beverages, soft drinks
3 and food that has been prepared for immediate consumption)
4 and prescription and nonprescription medicines, drugs,
5 medical appliances, and insulin, urine testing materials,
6 syringes, and needles used by diabetics, for human use, when
7 purchased for use by a person receiving medical assistance
8 under Article 5 of the Illinois Public Aid Code who resides
9 in a licensed long-term care facility, as defined in the
10 Nursing Home Care Act is exempt.
11 (Source: P.A. 88-374.)
12 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
13 Section 20-15. Sec. 3-10. Rate of tax. Unless otherwise
14 provided in this Section, the tax imposed by this Article Act
15 is at the rate of 6.25% of the "selling price", as defined in
16 Section 5-120 2 of the Service Use Tax Act, of the tangible
17 personal property. For the purpose of computing this tax, in
18 no event shall the "selling price" be less than the cost
19 price to the serviceman of the tangible personal property
20 transferred. The selling price of each item of tangible
21 personal property transferred as an incident of a sale of
22 service may be shown as a distinct and separate item on the
23 serviceman's billing to the service customer. If the selling
24 price is not so shown, the selling price of the tangible
25 personal property is deemed to be 50% of the serviceman's
26 entire billing to the service customer. When, however, a
27 serviceman contracts to design, develop, and produce special
28 order machinery or equipment, the tax imposed by this Article
29 Act shall be based on the serviceman's cost price of the
30 tangible personal property transferred incident to the
31 completion of the contract.
32 With respect to gasohol, as defined in Section 5-40 the
33 Use Tax Act, the tax imposed by this Article Act shall apply
-693- LRB9000671KDdvA
1 to 70% of the cost price of property transferred as an
2 incident to the sale of service on or after January 1, 1990,
3 and before July 1, 1999, and to 100% of the cost price
4 thereafter, except that from July 1, 1997 to July 1, 1999,
5 the rate shall be 85% for gasohol sold in this State during
6 the 12 months beginning July 1 following any calendar year
7 for which the Department has determined that the percentages
8 in Section 10 of the Gasohol Fuels Tax Abatement Act have not
9 been met.
10 At the election of any registered serviceman made for
11 each fiscal year, sales of service in which the aggregate
12 annual cost price of tangible personal property transferred
13 as an incident to the sales of service is less than 35%, or
14 75% in the case of servicemen transferring prescription drugs
15 or servicemen engaged in graphic arts production, of the
16 aggregate annual total gross receipts from all sales of
17 service, the tax imposed by this Article Act shall be based
18 on the serviceman's cost price of the tangible personal
19 property transferred incident to the sale of those services.
20 The tax shall be imposed at the rate of 1% on food
21 prepared for immediate consumption and transferred incident
22 to a sale of service subject to this Article Act or Article
23 25 the Service Occupation Tax Act by an entity licensed under
24 the Hospital Licensing Act or the Nursing Home Care Act. The
25 tax shall also be imposed at the rate of 1% on food for human
26 consumption that is to be consumed off the premises where it
27 is sold (other than alcoholic beverages, soft drinks, and
28 food that has been prepared for immediate consumption and is
29 not otherwise included in this paragraph) and prescription
30 and nonprescription medicines, drugs, medical appliances,
31 modifications to a motor vehicle for the purpose of rendering
32 it usable by a disabled person, and insulin, urine testing
33 materials, syringes, and needles used by diabetics, for human
34 use. For the purposes of this Section, the term "soft
-694- LRB9000671KDdvA
1 drinks" means any complete, finished, ready-to-use,
2 non-alcoholic drink, whether carbonated or not, including but
3 not limited to soda water, cola, fruit juice, vegetable
4 juice, carbonated water, and all other preparations commonly
5 known as soft drinks of whatever kind or description that are
6 contained in any closed or sealed can, carton, or container,
7 regardless of size. "Soft drinks" does not include coffee,
8 tea, non-carbonated water, infant formula, milk or milk
9 products as defined in the Grade A Pasteurized Milk and Milk
10 Products Act, or drinks containing 50% or more natural fruit
11 or vegetable juice.
12 Notwithstanding any other provisions of this Code Act,
13 "food for human consumption that is to be consumed off the
14 premises where it is sold" includes all food sold through a
15 vending machine, except soft drinks and food products that
16 are dispensed hot from a vending machine, regardless of the
17 location of the vending machine.
18 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
19 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
20 (35 ILCS 115/3-15) (from Ch. 120, par. 439.103-15)
21 Section 5-70. Sec. 3-15. Photoprocessing. For purposes
22 of the tax imposed on photographs, negatives, and positives
23 by this Code Act, "photoprocessing" includes, but is not
24 limited to, developing films, positives, and negatives, and
25 transparencies, and tinting, coloring, making, and enlarging
26 prints. Photoprocessing does not include color separation,
27 typesetting, and platemaking by photographic means in the
28 graphic arts industry and does not include any procedure,
29 process, or activity connected with the creation of the
30 images on the film from which the negatives, positives, or
31 photographs are derived. The charge for in-house
32 photoprocessing may not be less than the photoprocessor's
33 cost price of materials. In transactions in which products
-695- LRB9000671KDdvA
1 of photoprocessing are sold in conjunction with other
2 services, if a charge for the photoprocessing component is
3 not separately stated, tax is imposed on 50% of the entire
4 selling price unless the sale is made by a professional
5 photographer, in which case tax is imposed on 10% of the
6 entire selling price.
7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
8 86-1028; 86-1475.)
9 (35 ILCS 115/3-20) (from Ch. 120, par. 439.103-20)
10 Section 5-15. Sec. 3-20. Bullion. For purposes of the
11 exemption pertaining to bullion, "Bullion" means gold,
12 silver, or platinum in a bulk state with a purity of not less
13 than 980 parts per 1,000.
14 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
15 86-1028; 86-1475.)
16 (35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
17 Section 5-20. Sec. 3-25. Computer software. For the
18 purposes of this Act, "Computer software" means a set of
19 statements, data, or instructions to be used directly or
20 indirectly in a computer in order to bring about a certain
21 result in any form in which those statements, data, or
22 instructions may be embodied, transmitted, or fixed, by any
23 method now known or hereafter developed, regardless of
24 whether the statements, data, or instructions are capable of
25 being perceived by or communicated to humans, and includes
26 prewritten or canned software that is held for repeated sale
27 or lease, and all associated documentation and materials, if
28 any, whether contained on magnetic tapes, discs, cards, or
29 other devices or media, but does not include software that is
30 adapted to specific individualized requirements of a
31 purchaser, custom-made and modified software designed for a
32 particular or limited use by a purchaser, or software used to
-696- LRB9000671KDdvA
1 operate exempt machinery and equipment used in the process of
2 manufacturing or assembling tangible personal property for
3 wholesale or retail sale or lease.
4 For the purposes of this Code Act, computer software
5 shall be considered to be tangible personal property.
6 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
7 86-1028; 86-1475.)
8 (35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
9 Section 5-45. Sec. 3-30. Graphic arts production. For
10 purposes of this Act, "Graphic arts production" means
11 printing by one or more of the common processes or graphic
12 arts production services as those processes and services are
13 defined in Major Group 27 of the U.S. Standard Industrial
14 Classification Manual.
15 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
16 86-1028; 86-1475.)
17 (35 ILCS 115/3-35) (from Ch. 120, par. 439.103-35)
18 Section 5-80. Sec. 3-35. Production agriculture. For
19 purposes of this Act, "Production agriculture" means the
20 raising of or the propagation of livestock; crops for sale
21 for human consumption; crops for livestock consumption; and
22 production seed stock grown for the propagation of feed
23 grains and the husbandry of animals or for the purpose of
24 providing a food product, including the husbandry of blood
25 stock as a main source of providing a food product.
26 "Production agriculture" also means animal husbandry,
27 floriculture, aquaculture, horticulture, and viticulture.
28 (Source: P.A. 89-220, eff. 1-1-96.)
29 (35 ILCS 115/3-40) (from Ch. 120, par. 439.103-40)
30 Section 20-20. Sec. 3-40. Collection. The tax imposed
31 by this Article Act shall be paid to the Department by any
-697- LRB9000671KDdvA
1 serviceman transferring tangible personal property as an
2 incident to a sale of service taxable under this Article Act.
3 If a serviceman has paid service occupation tax to his or her
4 supplier based upon the cost price of tangible personal
5 property before January 1, 1990, or in error on or after
6 January 1, 1990, the serviceman, without filing any formal
7 claims with the Department, shall be allowed to take credit
8 against his or her service occupation tax liability based
9 upon the selling price of that property transferred in the
10 course of providing service to the extent of the amount of
11 the tax so paid.
12 If any serviceman collects an amount (however designated)
13 that purports to reimburse the serviceman for service
14 occupation tax liability measured by receipts or selling
15 prices that are not subject to service occupation tax, or if
16 any serviceman, in collecting an amount (however designated)
17 that purports to reimburse the serviceman for service
18 occupation tax liability measured by receipts or selling
19 prices that are subject to tax under this Article Act,
20 collects more from the purchaser than the serviceman's
21 service occupation tax liability in the transaction, the
22 purchaser shall have a legal right to claim a refund of that
23 amount from the serviceman. If, however, that amount is not
24 refunded to the purchaser by a serviceman for any reason, the
25 supplier or serviceman is liable to pay that amount to the
26 Department. This paragraph does not apply to an amount
27 collected by the supplier as service occupation tax, nor to
28 an amount collected by the serviceman as reimbursement for
29 the serviceman's service occupation tax liability on receipts
30 or cost prices that are subject to tax under this Article
31 Act, as long as the collection is made in compliance with the
32 tax collection brackets prescribed by the Department in its
33 rules and regulations.
34 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
-698- LRB9000671KDdvA
1 86-1028; 86-1475.)
2 (35 ILCS 115/3-45) (from Ch. 120, par. 439.103-45)
3 Section 30-215. Sec. 3-45. Interstate commerce
4 exemption. No tax is imposed by Article 10 or Article 20
5 under this Act upon the privilege of engaging in a business
6 in interstate commerce or otherwise, when the business may
7 not, under the Constitution and statutes of the United
8 States, be made the subject of taxation by this State.
9 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
10 86-1028; 86-1475.)
11 (35 ILCS 115/3-50) (from Ch. 120, par. 439.103-50)
12 Section 90-15. Sec. 3-50. Liability because of
13 amendatory Act.
14 (a) Revisions in Section 2 (which became Sections 2
15 through 2-65) of the Retailers' Occupation Tax Act by Public
16 Act 85-1135 do not affect tax liability that arose before
17 January 1, 1990.
18 (b) Revisions in Section 3 (which became Sections 3
19 through 3-80) of the Use Tax Act by Public Act 85-1135 do not
20 affect tax liability that arose before January 1, 1990.
21 (c) Revisions in Section 3 (which became Sections 3
22 through 3-50) of the Service Occupation Tax Act by Public Act
23 85-1135 do not affect tax liability that arose before January
24 1, 1990.
25 (d) Revisions in Section 3 (which became Sections 3
26 through 3-65) of the Service Use Tax Act by Public Act
27 85-1135 do not affect tax liability that arose before January
28 1, 1990. Revisions in Section 3 (now Sections 3 through 3-50)
29 by Public Act 85-1135 do not affect tax liability that arose
30 before January 1, 1990.
31 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
32 86-1028; 86-1475.)
-699- LRB9000671KDdvA
1 (35 ILCS 115/3-55)
2 Section 90-20. Sec. 3-55. Sunset of exemptions, credits,
3 and deductions. The application of every exemption, credit,
4 and deduction against taxes tax imposed by this Code Act that
5 becomes law after September 16, 1994 the effective date of
6 this amendatory Act of 1994 shall be limited by a reasonable
7 and appropriate sunset date. A taxpayer is not entitled to
8 take the exemption, credit, or deduction beginning on the
9 sunset date and thereafter. If a reasonable and appropriate
10 sunset date is not specified in the Public Act that creates
11 the exemption, credit, or deduction, a taxpayer shall not be
12 entitled to take the exemption, credit, or deduction
13 beginning 5 years after the effective date of the Public Act
14 creating the exemption, credit, or deduction and thereafter.
15 (Source: P.A. 88-660, eff. 9-16-94.)
16 (35 ILCS 115/4) (from Ch. 120, par. 439.104)
17 Section 90-25. Delivery in State. Sec. 4.
18 (a) For purposes of the use tax and the service use tax,
19 evidence that tangible personal property was sold by any
20 person for delivery to a person residing or engaged in
21 business in this State shall be prima facie evidence that
22 such tangible personal property was sold for use in this
23 State.
24 (b) For purposes of the service occupation tax, evidence
25 that tangible personal property was sold by any supplier for
26 delivery to a person residing or engaged in business in this
27 State shall be prima facie evidence that such tangible
28 personal property was sold for the purpose of resale as an
29 incident to a sale of service taxable under Article 20 this
30 Act.
31 (Source: Laws 1961, p. 1745.)
32 (35 ILCS 115/5) (from Ch. 120, par. 439.105)
-700- LRB9000671KDdvA
1 Section 60-20. Receipts; list of agents.
2 (a) For purposes of the use tax, except as to motor
3 vehicles and other items of tangible personal property that
4 must be titled or registered under an Illinois law, but that
5 cannot be so titled or registered without a use tax receipt
6 or exemption determination from the Department, every
7 retailer maintaining a place of business in this State and
8 making sales of tangible personal property for use in this
9 State (whether those sales are made within or without this
10 State) shall, when collecting the tax as provided in Section
11 15-20 of this Code from the purchaser, give to the purchaser
12 (if demanded by the purchaser) a receipt for the tax in the
13 manner and form prescribed by the Department.
14 (b) For purposes of the service occupation tax and the
15 service use tax, Sec. 5. every supplier or serviceman
16 maintaining a place of business in this State and (i) making
17 sales of tangible personal property for the purpose of resale
18 as an incident to the sale sales of service taxable under
19 this Code or (ii) making sales of service involving the
20 incidental transfer of property for use in this State Act
21 (whether those sales are made within or without this State)
22 shall, when collecting the taxes tax as provided in Sections
23 20-20 and 25-20 Section 3-40 of this Code Act from the
24 serviceman or purchaser, give to the serviceman or purchaser,
25 (if demanded by the serviceman or purchaser,) a receipt for
26 the tax in the manner and form provided prescribed by the
27 Department.
28 (c) A The receipt issued under this Section shall be
29 sufficient to relieve the purchaser or serviceman from
30 further liability for the tax to which the receipt may refer.
31 Each retailer, supplier, or serviceman shall list with the
32 Department the names and addresses of all of his or her
33 agents operating in this State and the location of any and
34 all of his or her distribution or sales houses, offices, or
-701- LRB9000671KDdvA
1 other places of business in this State.
2 (Source: P.A. 86-1475.)
3 (35 ILCS 115/6) (from Ch. 120, par. 439.106)
4 Section 35-15. Certificate of registration; service
5 occupation tax. A Sec. 6. Any supplier maintaining a place of
6 business in this State, if required to register for purposes
7 of under the "retailers' occupation tax Act", the "use tax,
8 Act" or the "service use tax Act", need not obtain an
9 additional certificate of registration for purposes of the
10 service occupation tax under this Act, but shall be deemed to
11 be sufficiently registered by virtue of his being registered
12 for purposes of under the "retailers' occupation tax Act",
13 the "use tax, Act" or the "service use tax Act". Every
14 supplier maintaining a place of business in this State, if
15 not required to register for purposes of under the
16 "retailers' occupation tax Act", the "use tax, Act" or the
17 "service use tax Act", shall apply to the Department (upon a
18 form prescribed and furnished by the Department) for a
19 certificate of registration for purposes of the service
20 occupation tax under this Act. Every serviceman maintaining a
21 place of business in this State, if not required to register
22 for purposes of under the "retailers' occupation tax Act",
23 the "use tax, Act" or the "service use tax Act", and desiring
24 to or required to pay the tax imposed by Article 20 this Act
25 directly to the Department, shall, except as provided in
26 Section 10 of this Act, apply to the Department (upon a form
27 prescribed and furnished by the Department) for a certificate
28 of registration for purposes of the service occupation tax
29 under this Act.
30 Section 35-30. Issuance of certificate of registration;
31 sub-certificate of registration.
32 (a) Upon receipt of the application for certificate of
-702- LRB9000671KDdvA
1 registration in proper form, and In completing such
2 application, the applicant shall furnish such information as
3 the Department may reasonably require. upon approval by the
4 Department of the security furnished by the applicant of an
5 application for Certificate of Registration, the Department
6 shall issue to such applicant, without charge, a certificate
7 of registration which shall permit the person to whom it is
8 issued to act as a retailer, supplier, or serviceman in this
9 State to the applicant. The Such certificate of registration
10 shall be conspicuously displayed at the place of business
11 address which the person so registered applicant states in
12 his application to be the principal place of business or
13 location from which he will act as a retailer, supplier, or
14 serviceman in this State.
15 No certificate of registration issued to a taxpayer who
16 files returns required by this Code on a monthly basis shall
17 be valid after the expiration of 5 years from the date of its
18 issuance or last renewal. The expiration date of a
19 sub-certificate of registration shall be that of the
20 certificate of registration to which the sub-certificate
21 relates. A certificate of registration shall automatically
22 be renewed, subject to revocation as provided by this Code,
23 for an additional 5 years from the date of its expiration
24 unless otherwise notified by the Department as provided by
25 this paragraph. Where a taxpayer to whom a certificate of
26 registration is issued under this Code is in default to the
27 State of Illinois for moneys due under this Code or any other
28 State tax law or municipal or county ordinance administered
29 or enforced by the Department, the Department shall, not less
30 than 120 days before the expiration date of such certificate
31 of registration, give notice to the taxpayer to whom the
32 certificate was issued, of the amount of tax, penalty and
33 interest due and owing from the taxpayer, and that the
34 certificate of registration shall not be automatically
-703- LRB9000671KDdvA
1 renewed upon its expiration date unless the taxpayer, on or
2 before the date of expiration, has paid the defaulted amount
3 in full. A taxpayer to whom such a notice is issued shall be
4 deemed an applicant for renewal. The Department shall
5 promulgate regulations establishing procedures for taxpayers
6 who file returns on a monthly basis but desire and qualify to
7 change to a quarterly or yearly filing basis and will no
8 longer be subject to renewal under this Section, and for
9 taxpayers who file returns on a yearly or quarterly basis but
10 who desire or are required to change to a monthly filing
11 basis and will be subject to renewal under this Section.
12 The Department may in its discretion approve renewal by
13 an applicant who is in default if, at the time of application
14 for renewal, the applicant pays to the Department such
15 percentage of the defaulted amount as may be determined by
16 the Department and agrees in writing to waive all limitations
17 upon the Department for collection of the remaining defaulted
18 amount to the Department over a period not to exceed 5 years
19 from the date of renewal of the certificate; however, no
20 renewal application submitted by an applicant who is in
21 default shall be approved if the immediately preceding
22 renewal by the applicant was conditioned upon the installment
23 payment agreement described in this Section. The payment
24 agreement herein provided for shall be in addition to and not
25 in lieu of the security required by Section 35-25 of a
26 taxpayer who is no longer considered a prior continuous
27 compliance taxpayer. The execution of the payment agreement
28 as provided in this Code shall not toll the accrual of
29 interest at the statutory rate.
30 A certificate of registration issued under this Code more
31 than 5 years before the effective date of this amendatory Act
32 of 1989 shall expire and be subject to the renewal provisions
33 of this Section on the next anniversary of the date of
34 issuance of such certificate which occurs more than 6 months
-704- LRB9000671KDdvA
1 after the effective date of this amendatory Act of 1989. A
2 certificate of registration issued less than 5 years before
3 the effective date of this amendatory Act of 1989 shall
4 expire and be subject to the renewal provisions of this
5 Section on the 5th anniversary of the issuance of the
6 certificate.
7 (b) If the person so registered states that he operates
8 other places of business from which he acts applicant will
9 act as a retailer, supplier, or serviceman in this State,
10 from other places of business or locations, he shall list the
11 addresses of such additional places of business or locations
12 in his application for Certificate of Registration, and the
13 Department shall furnish him with issue a sub-certificate of
14 registration to the applicant for each such additional place
15 of business, and the applicant shall display the appropriate
16 sub-certificate of registration at each such place of
17 business. All sub-certificates or location. Each
18 Sub-Certificate of Registration shall be conspicuously
19 displayed at the place for which it is issued. Such
20 Sub-Certificate of registration shall bear the same
21 registration number as that appearing upon the certificate of
22 registration to which such sub-certificates relate
23 Sub-Certificate relates.
24 (c) If the applicant will sell tangible personal
25 property at retail through vending machines, the Department
26 shall furnish him with a sub-certificate of registration for
27 each such vending machine, and the applicant shall display
28 the appropriate sub-certificate of registration on each such
29 vending machine by attaching the sub-certificate of
30 registration to a conspicuous part of such vending machine.
31 Where the same person engages in 2 or more businesses
32 that are subject to registration under this Code, which a
33 supplier or serviceman operates more than one place of
34 business which is subject to registration under this Section
-705- LRB9000671KDdvA
1 and such businesses are substantially different in character
2 or are engaged in under different trade names or are engaged
3 in under other substantially dissimilar circumstances (so
4 that it is more practicable, from an accounting, auditing or
5 bookkeeping standpoint, for such businesses to be separately
6 registered), the Department may require or permit such person
7 (subject to the same requirements concerning the furnishing
8 of security as those that are provided for in Section 35-25
9 as to each application for a certificate of registration) to
10 apply for and obtain a separate certificate of registration
11 for each such business or for any of such businesses instead
12 of registering such person, as to all such businesses, under
13 a single certificate of registration supplemented by related
14 sub-certificates of registration. Such Certificate of
15 Registration shall not be issued to any person who is in
16 default to the State of Illinois for moneys due under this
17 Act.
18 Section 60-10. Foreign retailers; permit to collect tax.
19 For purposes of the use tax, the service occupation tax, and
20 the service use tax, the Department may, in its discretion,
21 upon application, authorize the collection of the tax herein
22 imposed by any retailer, supplier, or serviceman not
23 maintaining a place of business within this State, who, to
24 the satisfaction of the Department, furnishes adequate
25 security to insure collection and payment of the tax. Such
26 retailer, supplier, or serviceman shall be issued, without
27 charge, a permit to collect such tax. When so authorized, it
28 shall be the duty of such retailer, supplier, or serviceman
29 to collect the tax upon all tangible personal property sold
30 to his knowledge for use or for the purpose of resale as an
31 incident to the sale of a service within this State, in the
32 same manner and subject to the same requirements, including
33 the furnishing of a receipt to the purchaser or serviceman
-706- LRB9000671KDdvA
1 (if demanded by the purchaser or serviceman), as a retailer,
2 supplier, or serviceman maintaining a place of business
3 within this State. The receipt given to the purchaser or
4 serviceman shall be sufficient to relieve him from further
5 tax liability for the tax to which such receipt may refer.
6 Such permit may be revoked by the Department as provided in
7 this Code Act.
8 (Source: Laws 1965, p. 3723.)
9 (35 ILCS 115/7) (from Ch. 120, par. 439.107)
10 Section 80-20. Advertisement of tax absorption. For
11 purposes of the use tax, the service occupation tax, and the
12 service use tax, Sec. 7. it is unlawful for (a) any retailer
13 to advertise, hold out, or state to the public or to any
14 purchaser, consumer, or user, (b) any supplier to advertise,
15 or hold out, or state to the public or to any serviceman, or
16 (c) any serviceman to advertise, hold out, or state to the
17 public or to any service customer, purchaser, consumer, or
18 user, directly or indirectly, that the tax or any part
19 thereof imposed by Article 15, Article 20, or Article 25 or
20 any part thereof Section 3 hereof will be assumed or absorbed
21 by the retailer, supplier, or serviceman or that they it will
22 not be added to the selling price of the property sold or
23 transferred as an incident to a sale of service, or if added
24 that it or any part thereof will be refunded other than when
25 the retailer, supplier, or serviceman refunds the selling
26 price and tax because of the merchandise's being returned to
27 the retailer, supplier, or serviceman or other than when the
28 retailer, supplier, or serviceman credits or refunds the tax
29 to the purchaser, serviceman, or service customer to support
30 a claim filed with the Department under this Code Act. Any
31 person violating any of the provisions of this Section within
32 the this State shall be guilty of a Class A misdemeanor.
33 (Source: P. A. 77-2830.)
-707- LRB9000671KDdvA
1 (35 ILCS 115/8) (from Ch. 120, par. 439.108)
2 Section 60-5. Tax collected as debt owed to State;
3 exception. Sec. 8. The tax herein required to be collected by
4 any retailer pursuant to Article 15, any supplier pursuant to
5 Article 20 this Act, or any serviceman pursuant to Article
6 25, and any such tax collected by any retailer, supplier, or
7 serviceman shall constitute a debt owed by the retailer,
8 supplier, or serviceman to this State, except (i) when such
9 retailer is relieved of the duty of remitting such tax to the
10 Department by virtue of his being required to pay, and his in
11 fact paying, the tax imposed by Article 10 upon his gross
12 receipts from the same transaction, or (ii) when such
13 serviceman is relieved of the duty of remitting such tax to
14 the Department by virtue of his being required to pay, and
15 his in fact paying, the tax imposed by Article 20 upon his
16 sale of service involving the incidental transfer by him of
17 the same property.
18 (Source: Laws 1961, p. 1745.)
19 Section 50-5. Applicability of Sections 50-10 through
20 50-140. All of the provisions of Sections 50-10 through
21 50-140 of this Code shall apply to the retailers' occupation
22 tax, the use tax, the service occupation tax, and the service
23 use tax unless otherwise stated, except that the Sections
24 concerning the disposition by the Department of the money
25 collected under this Code shall not apply to the service
26 occupation tax and the service use tax unless the Section
27 states that it applies to those taxes. To the extent that
28 any provision specifically applying to the use tax, the
29 service occupation tax, or the service use tax is
30 inconsistent with a general provision applying to all of the
31 taxes, the specific provision shall control.
32 Section 50-10. Monthly returns. Except as provided in
-708- LRB9000671KDdvA
1 Sections 50-5 through 50-140, on or before the twentieth day
2 of each calendar month, every person engaged in the business
3 of selling tangible personal property at retail in this State
4 during the preceding calendar month shall file a return with
5 the Department, stating:
6 (1) the name of the seller;
7 (2) his residence address and the address of his
8 principal place of business and the address of the
9 principal place of business (if that is a different
10 address) from which he engages in the business of selling
11 tangible personal property at retail in this State;
12 (3) total amount of receipts received by him during
13 the preceding calendar month or quarter, as the case may
14 be, from sales of tangible personal property, and from
15 services furnished, by him during such preceding calendar
16 month or quarter;
17 (4) total amount received by him during the
18 preceding calendar month or quarter on charge and time
19 sales of tangible personal property, and from services
20 furnished, by him prior to the month or quarter for which
21 the return is filed;
22 (5) deductions allowed by law;
23 (6) gross receipts which were received by him
24 during the preceding calendar month or quarter and upon
25 the basis of which the tax is imposed;
26 (7) the amount of credit provided in Section 10-30;
27 (8) the amount of tax due;
28 (9) the signature of the taxpayer; and
29 (10) such other reasonable information as the
30 Department may require.
31 Section 50-15. Use tax returns. For purposes of the use
32 tax, except as provided in Sections 50-5 through 50-140, on
33 or before the twentieth day of each calendar month, each
-709- LRB9000671KDdvA
1 retailer required or authorized to collect the use tax shall
2 file a return for the preceding calendar month. Such return
3 shall be filed on forms prescribed by the Department and
4 shall furnish such information as the Department may
5 reasonably require.
6 Section 50-25. Service use tax returns. For purposes of
7 the service use tax, except as provided in Sections 50-5
8 through 50-140, on or before the twentieth day of each
9 calendar month, each serviceman required or authorized to
10 collect the service use tax shall file a return for the
11 preceding calendar month in accordance with reasonable rules
12 and regulations to be promulgated by the Department. Such
13 return shall be filed on a form prescribed by the Department
14 and shall contain such information as the Department may
15 reasonably require.
16 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
17 Section 50-110. Payment of tax by retailer or
18 serviceman.
19 (a) Except as provided in Sections 50-5 through 50-140,
20 the retailer filing the return under Sections 50-5 through
21 50-140 shall, at the time of filing such return, pay to the
22 Department the amount of tax imposed by this Code less a
23 discount of 2.1% prior to January 1, 1990 and 1.75% on and
24 after January 1, 1990, or $5 per calendar year, whichever is
25 greater, which is allowed to reimburse the retailer for the
26 expenses incurred in keeping records, preparing and filing
27 returns, remitting the tax and supplying data to the
28 Department on request. Any prepayment made pursuant to
29 Section 10-30 shall be included in the amount on which such
30 2.1% or 1.75% discount is computed.
31 (b) For purposes of the use tax, the service occupation
32 tax, and the service use tax, Sec. 9. each retailer or
-710- LRB9000671KDdvA
1 serviceman required or authorized to collect the taxes tax
2 herein imposed by Articles 15, 20, or 25 shall pay to the
3 Department the amount of such tax (except as otherwise
4 provided) at the time when he is required to file his return
5 for the period during which such tax was collected
6 collectible, less a discount of 2.1% prior to January 1,
7 1990, and 1.75% on and after January 1, 1990, or $5 per
8 calendar year, whichever is greater, which is allowed to
9 reimburse the retailer or serviceman for expenses incurred in
10 collecting the tax, keeping records, preparing and filing
11 returns, remitting the tax and supplying data to the
12 Department on request. For purposes of the use tax, this
13 subsection shall not apply to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State.
16 (c) In the case of retailers who report and pay the tax
17 on a transaction by transaction basis, as provided in
18 Sections 50-5 through 50-140, such discount shall be taken
19 with each such tax remittance instead of when such retailer
20 files his periodic return.
21 (d) For purposes of the use tax, a retailer need not
22 remit that part of any tax collected by him to the extent
23 that he is required to remit and does remit the tax imposed
24 by Article 10, with respect to the sale of the same property.
25 (e) For purposes of the service use tax, a serviceman
26 need not remit that part of any tax collected by him to the
27 extent that he is required to pay and does pay the tax
28 imposed by Article 20 with respect to his sale of service
29 involving the incidental transfer by him of the same
30 property.
31 Section 50-115. Conditional sales contract. For purposes
32 of the use tax and the service occupation tax, where such
33 tangible personal property is sold under a conditional sales
-711- LRB9000671KDdvA
1 contract, or under any other form of sale wherein the payment
2 of the principal sum, or a part thereof, is extended beyond
3 the close of the period for which the return is filed, the
4 retailer or serviceman, in collecting the tax (except, for
5 purposes of the use tax only, as to motor vehicles,
6 watercraft, aircraft, and trailers that are required to be
7 registered with an agency of this State), may collect, for
8 each tax return period, only the tax applicable to that the
9 part of the selling price actually received during such tax
10 return period.
11 Section 50-20. Service occupation tax returns. For
12 purposes of the service occupation tax, except as provided in
13 Sections 50-5 through 50-140 hereinafter in this Section, on
14 or before the twentieth day of each calendar month, each such
15 serviceman required or authorized to collect the service
16 occupation tax shall file a return for the preceding calendar
17 month in accordance with reasonable rules and regulations to
18 be promulgated by the Department of Revenue. Such return
19 shall be filed on a form prescribed by the Department and
20 shall contain such information as the Department may
21 reasonably require.
22 Section 50-30. Quarterly returns. The Department may
23 require returns to be filed on a quarterly basis. If so
24 required, a return for each calendar quarter shall be filed
25 on or before the twentieth day of the calendar month
26 following the end of such calendar quarter. The taxpayer
27 shall also file a return with the Department for each of the
28 first two months of each calendar quarter, on or before the
29 twentieth day of the following calendar month, stating:
30 (1) 1. the name of the seller;
31 (2) 2. the address of the principal place of
32 business from which he engages (i) in the business of
-712- LRB9000671KDdvA
1 selling tangible personal property at retail in this
2 State or (ii) in business as a serviceman in this State;
3 (3) 3. for purposes of the retailers' occupation
4 tax and the use tax, the total amount of taxable receipts
5 received by him during the preceding calendar month from
6 sales of tangible personal property by him during such
7 preceding calendar month, including receipts from charge
8 and time sales, but less all deductions allowed by law
9 or, for purposes of the service occupation tax and the
10 service use tax, the total amount of taxable receipts
11 received by him during the preceding calendar month,
12 including receipts from charge and time sales, but less
13 all deductions allowed by law;
14 (4) 4. the amount of credit provided in Section
15 10-30 2d of this Act;
16 (5) 5. the amount of tax due;
17 (6) 5-5. for purposes of the use tax, the service
18 occupation tax, and the service use tax, the signature of
19 the taxpayer; and
20 (7) 6. such other reasonable information as the
21 Department may require.
22 Section 50-40. Failure to sign a return. If a taxpayer
23 fails to sign a return within 30 days after the proper notice
24 and demand for signature by the Department, the return shall
25 be considered valid and any amount shown to be due on the
26 return shall be deemed assessed.
27 Section 50-160. Manufacturer's Purchase Credit.
28 (a) For purposes of the retailers' occupation tax, a
29 retailer may accept a Manufacturer's Purchase Credit
30 certification from a purchaser in satisfaction of use tax as
31 provided in Section 30-230 if the purchaser provides the
32 appropriate documentation as required by Section 30-230. A
-713- LRB9000671KDdvA
1 Manufacturer's Purchase Credit certification, accepted by a
2 retailer as provided in Section 30-230, may be used by that
3 retailer to satisfy retailers' occupation tax liability in
4 the amount claimed in the certification, not to exceed 6.25%
5 of the receipts subject to tax from a qualifying purchase.
6 (b) For purposes of the service occupation tax, a
7 serviceman may accept a Manufacturer's Purchase Credit
8 certification from a purchaser in satisfaction of service use
9 tax as provided in Section 30-230 3-70 of the Service Use Tax
10 Act if the purchaser provides the appropriate documentation
11 as required by Section 30-230 3-70 of the Service Use Tax
12 Act. A Manufacturer's Purchase Credit certification, accepted
13 by a serviceman as provided in Section 30-230 3-70 of the
14 Service Use Tax Act, may be used by that serviceman to
15 satisfy service occupation tax liability in the amount
16 claimed in the certification, not to exceed 6.25% of the
17 receipts subject to tax from a qualifying purchase.
18 Section 50-35. Authorization to file returns on quarter
19 annual or annual basis.
20 (a) If the retailer or serviceman is otherwise required
21 to file a monthly return and if the retailer's or
22 serviceman's average monthly tax liability to the Department
23 does not exceed $200, the Department may authorize his
24 returns to be filed on a quarter annual basis, with the
25 return for January, February and March of a given year being
26 due by April 20 of such year; with the return for April, May
27 and June of a given year being due by July 20 of such year;
28 with the return for July, August and September of a given
29 year being due by October 20 of such year, and with the
30 return for October, November and December of a given year
31 being due by January 20 of the following year.
32 (b) If the retailer or serviceman is otherwise required
33 to file a monthly or quarterly return and if the retailer's
-714- LRB9000671KDdvA
1 or serviceman's average monthly tax liability with to the
2 Department does not exceed $50, the Department may authorize
3 his returns to be filed on an annual basis, with the return
4 for a given year being due by January 20 of the following
5 year.
6 (c) Such quarter annual and annual returns, as to form
7 and substance, shall be subject to the same requirements as
8 monthly returns.
9 Section 50-60. Cessation of business. Notwithstanding
10 any other provision in this Code Act concerning the time
11 within which a retailer or serviceman may file his return, in
12 the case of any retailer or serviceman who ceases to engage
13 in a kind of business which makes him responsible for filing
14 returns under this Code Act, such retailer or serviceman
15 shall file a final return under this Code Act with the
16 Department not more than one 1 month after discontinuing such
17 business.
18 Section 50-100. Electronic funds transfer.
19 (a) Beginning October 1, 1993, a taxpayer who has an
20 average monthly tax liability of $150,000 or more shall make
21 all payments required by rules of the Department by
22 electronic funds transfer. Beginning October 1, 1994, a
23 taxpayer who has an average monthly tax liability of $100,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. Beginning October
26 1, 1995, a taxpayer who has an average monthly tax liability
27 of $50,000 or more shall make all payments required by rules
28 of the Department by electronic funds transfer. The term
29 "average monthly tax liability" shall be means the sum of the
30 taxpayer's liabilities under this Code Act, and under all
31 other State and local occupation and use tax laws
32 administered by the Department, for the immediately preceding
-715- LRB9000671KDdvA
1 calendar year divided by 12.
2 (b) Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers
5 required to make payments by electronic funds transfer shall
6 make those payments for a minimum of one year beginning on
7 October 1.
8 (c) Any taxpayer not required to make payments by
9 electronic funds transfer may make payments by electronic
10 funds transfer with the permission of the Department.
11 (d) All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 (e) The Department shall adopt such rules as are
16 necessary to effectuate a program of electronic funds
17 transfer and the requirements of Sections 50-5 through 50-140
18 this Section.
19 Section 50-105. Refunds.
20 (a) Refunds made by the seller during the preceding
21 return period to purchasers, on account of tangible personal
22 property returned to the seller, shall be allowed as a
23 deduction under subdivision 5 of his monthly or quarterly
24 return, as the case may be, in case the seller had
25 theretofore included the receipts from the sale of such
26 tangible personal property in a return filed by him and had
27 paid the tax imposed by Article 10 with respect to such
28 receipts.
29 (b) For purposes of the use tax, the service occupation
30 tax, and the service use tax, where a retailer or serviceman
31 collects the tax with respect to the selling price of
32 tangible personal property which he sells and the purchaser
33 thereafter returns such tangible personal property and the
-716- LRB9000671KDdvA
1 retailer or serviceman refunds the selling price thereof to
2 the purchaser, such retailer or serviceman shall also refund,
3 to the purchaser, the tax so collected from the purchaser.
4 When filing his return for the period in which he refunds
5 such tax to the purchaser, the retailer or serviceman may
6 deduct the amount of the tax so refunded by him to the
7 purchaser from any other service use tax, service occupation
8 tax, Service Use Tax, retailers' occupation tax or use tax
9 which such retailer or serviceman may be required to pay or
10 remit to the Department, as shown by such return, provided
11 that the amount of the tax to be deducted was shall
12 previously have been remitted to the Department by such
13 retailer or serviceman. If the retailer or serviceman has
14 shall not previously have remitted the amount of such tax to
15 the Department, he shall be entitled to no deduction
16 hereunder upon refunding such tax to the purchaser.
17 Section 50-75. Joint returns.
18 (a) For purposes of the use tax, if experience indicates
19 such action to be practicable, the Department may prescribe
20 and furnish a combination or joint return which will enable
21 retailers, who are required to file returns for the taxes
22 imposed in Article 10 and Article 15 to furnish all the
23 return information required for both taxes on the one form.
24 (b) For purposes of the service use tax, if experience
25 indicates such action to be practicable, the Department may
26 prescribe and furnish a combination or joint return which
27 will enable servicemen, who are required to file returns for
28 the taxes imposed by Articles 20 and 25, to furnish all the
29 return information required by both taxes on the one form.
30 (c) For purposes of the service occupation tax, if
31 experience indicates such action to be practicable, the
32 Department may prescribe and furnish a combination or joint
33 return which will enable servicemen, who are required to file
-717- LRB9000671KDdvA
1 returns for the tax imposed by Article 20 hereunder and also
2 under the taxes imposed by Articles 10, 15, and 25 Retailers'
3 Occupation Tax Act, the Use Tax Act or the Service Use Tax
4 Act, to furnish all the return information required by all
5 said taxes Acts on the one form.
6 Section 50-65. Multiple businesses. Where the same
7 person serviceman has more than one business registered with
8 the Department under separate registrations under this Code
9 hereunder, such person may not file each return that is due
10 as a single return covering all such registered businesses,
11 but serviceman shall file separate returns for each such
12 registered business.
13 Section 85-15. Distribution of service occupation tax
14 receipts. This Section shall apply to the service occupation
15 tax only. Beginning January 1, 1990, each month the
16 Department shall pay into the Local Government Tax Fund the
17 revenue realized for the preceding month from the 1% tax on
18 sales of food for human consumption which is to be consumed
19 off the premises where it is sold (other than alcoholic
20 beverages, soft drinks and food which has been prepared for
21 immediate consumption) and prescription and nonprescription
22 medicines, drugs, medical appliances and insulin, urine
23 testing materials, syringes and needles used by diabetics.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the County and Mass Transit District Fund 4%
26 of the revenue realized for the preceding month from the
27 6.25% general rate.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the Local Government Tax Fund 16% of the
30 revenue realized for the preceding month from the 6.25%
31 general rate on transfers of tangible personal property.
32 Of the remainder of the moneys received by the Department
-718- LRB9000671KDdvA
1 pursuant to Article 20, disposition of funds shall be made as
2 provided in Section 85-25.
3 Subject to payment of amounts into the Build Illinois
4 Fund as provided in this Section and Section 85-25,
5 disposition of funds shall be made as provided in Section
6 85-30.
7 Subject to payment of amounts into the Build Illinois
8 Fund and the McCormick Place Expansion Project Fund pursuant
9 to this Article, each month the Department shall pay into the
10 Local Government Distributive Fund 0.4% of the net revenue
11 realized for the preceding month from the 5% general rate or
12 0.4% of 80% of the net revenue realized for the preceding
13 month from the 6.25% general rate, as the case may be, on the
14 selling price of tangible personal property which amount
15 shall, subject to appropriation, be distributed as provided
16 in Section 2 of the State Revenue Sharing Act. No payments
17 or distributions pursuant to this paragraph shall be made if
18 the tax imposed by Article 20 on photoprocessing products is
19 declared unconstitutional, or if the proceeds from such tax
20 are unavailable for distribution because of litigation.
21 Subject to payment of amounts into the Build Illinois
22 Fund, the McCormick Place Expansion Project Fund, and the
23 Local Government Distributive Fund pursuant to this Article,
24 beginning July 1, 1993, the Department shall each month pay
25 into the Illinois Tax Increment Fund 0.27% of 80% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 Remaining moneys received by the Department pursuant to
30 Article 20 shall be paid into the General Revenue Fund of the
31 State Treasury.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
-719- LRB9000671KDdvA
1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Article 20 for the second preceding
4 month; except that this transfer shall not be made for the
5 months February through June, 1992.
6 For purposes of this Section net revenue realized for a
7 month shall be the revenue collected by the State pursuant to
8 Article 20, less the amount paid out during that month as
9 refunds to taxpayers for overpayment of liability.
10 Section 85-25. Payments to the Build Illinois Fund. Of
11 the remainder of the moneys received by the Department
12 pursuant to Article 10, Article 15, Article 20, or Article
13 25, as the case may be this Act, (a) 1.75% thereof shall be
14 paid into the Build Illinois Fund and (b) prior to July 1,
15 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
16 be paid into the Build Illinois Fund; provided, however, that
17 if in any fiscal year the sum of (1) the aggregate of 2.2% or
18 3.8%, as the case may be, of the moneys received by the
19 Department and required to be paid into the Build Illinois
20 Fund pursuant to this Code Section 3 of the Retailers'
21 Occupation Tax Act, Section 9 of the Use Tax Act, Section 9
22 of the Service Use Tax Act, and Section 9 of the Service
23 Occupation Tax Act, such Acts being hereinafter called the
24 "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25 may be, of moneys being hereinafter called the "Tax Code Act
26 Amount", and (2) the amount transferred to the Build Illinois
27 Fund from the State and Local Sales Tax Reform Fund shall be
28 less than the Annual Specified Amount (as hereinafter defined
29 in Section 3 of the Retailers' Occupation Tax Act), an amount
30 equal to the difference shall be immediately paid into the
31 Build Illinois Fund from other moneys received by the
32 Department pursuant to this Code the Tax Acts; the "Annual
33 Specified Amount" means the amounts specified below for
-720- LRB9000671KDdvA
1 fiscal years 1986 through 1993:
2 Fiscal Year Annual Specified Amount
3 1986 $54,800,000
4 1987 $76,650,000
5 1988 $80,480,000
6 1989 $88,510,000
7 1990 $115,330,000
8 1991 $145,470,000
9 1992 $182,730,000
10 1993 $206,520,000;
11 and means the Certified Annual Debt Service Requirement (as
12 defined in Section 13 of the Build Illinois Bond Act) or the
13 Tax Code Amount, whichever is greater, for fiscal year 1994
14 and each fiscal year thereafter; and further provided, that
15 if on the last business day of any month the sum of (1) the
16 Tax Code Act Amount required to be deposited into the Build
17 Illinois Bond Account in the Build Illinois Fund during such
18 month and (2) the amount transferred during such month to the
19 Build Illinois Fund from the State and Local Sales Tax Reform
20 Fund shall have been less than 1/12 of the Annual Specified
21 Amount, an amount equal to the difference shall be
22 immediately paid into the Build Illinois Fund from other
23 moneys received by the Department pursuant to this Code the
24 Tax Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Code Act Amount or (ii) the Annual Specified
29 Amount for such fiscal year.; and, further provided, that The
30 amounts payable into the Build Illinois Fund under this
31 clause (b) of the first sentence in this paragraph shall be
32 payable only until such time as the aggregate amount on
33 deposit under each trust indenture securing Bonds issued and
34 outstanding pursuant to the Build Illinois Bond Act is
-721- LRB9000671KDdvA
1 sufficient, taking into account any future investment income,
2 to fully provide, in accordance with such indenture, for the
3 defeasance of or the payment of the principal of, premium, if
4 any, and interest on the Bonds secured by such indenture and
5 on any Bonds expected to be issued thereafter and all fees
6 and costs payable with respect thereto, all as certified by
7 the Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of the
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to this Code the Tax Acts to the Build
18 Illinois Fund; provided, however, that any amounts paid to
19 the Build Illinois Fund in any fiscal year pursuant to this
20 sentence shall be deemed to constitute payments pursuant to
21 clause (b) of the first preceding sentence of this paragraph
22 and shall reduce the amount otherwise payable for such fiscal
23 year pursuant to that clause (b) of the preceding sentence.
24 The moneys received by the Department pursuant to this Code
25 Act and required to be deposited into the Build Illinois Fund
26 are subject to the pledge, claim and charge set forth in
27 Section 12 of the Build Illinois Bond Act.
28 Section 85-30. Payments to the McCormick Place Expansion
29 Project Fund. Subject to payment of amounts into the Build
30 Illinois Fund as provided in Sections 85-5 through 85-25 the
31 preceding paragraph or in any amendment thereto hereafter
32 enacted, the following specified monthly installment of the
33 amount requested in the certificate of the Chairman of the
-722- LRB9000671KDdvA
1 Metropolitan Pier and Exposition Authority provided under
2 Section 8.25f of the State Finance Act, but not in excess of
3 the sums designated as "Total Deposit", shall be deposited in
4 the aggregate from collections under Sections 50-5 through
5 50-140 Section 9 of the Use Tax Act, Section 9 of the Service
6 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
7 Section 3 of the Retailers' Occupation Tax Act into the
8 McCormick Place Expansion Project Fund in the specified
9 fiscal years.
10 Fiscal Year Total Deposit
11 1993 $0
12 1994 53,000,000
13 1995 58,000,000
14 1996 61,000,000
15 1997 64,000,000
16 1998 68,000,000
17 1999 71,000,000
18 2000 75,000,000
19 2001 80,000,000
20 2002 84,000,000
21 2003 89,000,000
22 2004 93,000,000
23 and each fiscal year
24 thereafter that bonds
25 are outstanding under
26 Section 13.2 of the
27 Metropolitan Pier and
28 Exposition Authority
29 Act.
30 Beginning July 20, 1993 and in each month of each fiscal
31 year thereafter, one-eighth of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority for that fiscal year, less the amount
34 deposited into the McCormick Place Expansion Project Fund by
-723- LRB9000671KDdvA
1 the State Treasurer in the respective month under subsection
2 (g) of Section 13 of the Metropolitan Pier and Exposition
3 Authority Act, plus cumulative deficiencies in the deposits
4 required under this Section for previous months and years,
5 shall be deposited into the McCormick Place Expansion Project
6 Fund, until the full amount requested for the fiscal year,
7 but not in excess of the amount specified above as "Total
8 Deposit", has been deposited.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to the preceding paragraphs or in any amendment thereto
12 hereafter enacted, each month the Department shall pay into
13 the Local Government Distributive Fund .4% of the net revenue
14 realized for the preceding month from the 5% general rate or
15 .4% of 80% of the net revenue realized for the preceding
16 month from the 6.25% general rate, as the case may be, on the
17 selling price of tangible personal property which amount
18 shall, subject to appropriation, be distributed as provided
19 in Section 2 of the State Revenue Sharing Act. No payments
20 or distributions pursuant to this paragraph shall be made if
21 the tax imposed by this Act on photoprocessing products is
22 declared unconstitutional, or if the proceeds from such tax
23 are unavailable for distribution because of litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project Fund, and the
26 Local Government Distributive Fund pursuant to the preceding
27 paragraphs or in any amendments thereto hereafter enacted,
28 beginning July 1, 1993, the Department shall each month pay
29 into the Illinois Tax Increment Fund 0.27% of 80% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
33 Remaining moneys received by the Department pursuant to
34 this Act shall be paid into the General Revenue Fund of the
-724- LRB9000671KDdvA
1 State Treasury.
2 Section 50-95. Annual information return.
3 (a) The Department may, upon separate written notice to
4 a taxpayer, require the taxpayer to prepare and file with the
5 Department on a form prescribed by the Department within not
6 less than 60 days after receipt of the notice an annual
7 information return for the tax year specified in the notice.
8 Such annual return to the Department shall include a
9 statement of gross receipts as shown by the taxpayer's last
10 federal income tax return. If the total receipts of the
11 business as reported in the federal income tax return do not
12 agree with the gross receipts reported to the Department of
13 Revenue for the same period, the taxpayer shall attach to his
14 annual return a schedule showing a reconciliation of the 2
15 amounts and the reasons for the difference. The taxpayer's
16 annual return to the Department shall also disclose the cost
17 of goods sold by the taxpayer during the year covered by such
18 return, opening and closing inventories of such goods for
19 such year, cost of goods used from stock or taken from stock
20 and given away by the taxpayer during such year, payroll pay
21 roll information of the taxpayer's business during such year
22 and any additional reasonable information which the
23 Department deems would be helpful in determining the accuracy
24 of the monthly, quarterly or annual returns filed by such
25 taxpayer as hereinbefore provided for in Sections 50-5
26 through 50-140 this Section.
27 (b) If the annual information return required by this
28 Section is not filed when and as required, the taxpayer shall
29 be liable as follows:
30 (i) Until January 1, 1994, the taxpayer shall be
31 liable for a penalty equal to 1/6 of 1% of the tax due
32 from such taxpayer under this Code Act during the period
33 to be covered by the annual return for each month or
-725- LRB9000671KDdvA
1 fraction of a month until such return is filed as
2 required, the penalty to be assessed and collected in the
3 same manner as any other penalty provided for in this
4 Code Act.
5 (ii) On and after January 1, 1994, the taxpayer
6 shall be liable for a penalty as described in Section 3-4
7 of the Uniform Penalty and Interest Act.
8 (c) The chief executive officer, proprietor, owner or
9 highest ranking manager shall sign the annual return to
10 certify the accuracy of the information contained therein.
11 Any person who willfully signs the annual return containing
12 false or inaccurate information shall be guilty of perjury
13 and punished accordingly. The annual return form prescribed
14 by the Department shall include a warning that the person
15 signing the return may be liable for perjury.
16 (d) The provisions foregoing portion of this Section
17 concerning the filing of an annual information return do
18 shall not apply to a retailer or serviceman who is not
19 required to file an income tax return with the United States
20 government.
21 As soon as possible after the first day of each month,
22 upon certification of the Department of Revenue, the
23 Comptroller shall order transferred and the Treasurer shall
24 transfer from the General Revenue Fund to the Motor Fuel Tax
25 Fund an amount equal to 1.7% of 80% of the net revenue
26 realized under this Act for the second preceding month;
27 except that this transfer shall not be made for the months
28 February through June, 1992.
29 Net revenue realized for a month shall be the revenue
30 collected by the State pursuant to this Act, less the amount
31 paid out during that month as refunds to taxpayers for
32 overpayment of liability.
33 Section 50-135. Payment by manufacturers, importers, and
-726- LRB9000671KDdvA
1 wholesalers. For greater simplicity of administration, it
2 shall be permissible for manufacturers, importers and
3 wholesalers whose products are sold at retail in Illinois by
4 numerous retailers or servicemen in Illinois, and who wish to
5 do so, may to assume the responsibility for accounting and
6 paying to the Department all tax accruing under this Code Act
7 with respect to such sales, if the retailers or servicemen
8 who are affected do not make written objection to the
9 Department to this arrangement.
10 (Source: P.A. 88-45; 88-116; 88-547, eff. 6-30-94; 88-669,
11 eff. 11-29-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
12 89-379, eff. 1-1-96; revised 11-13-95.)
13 Section 50-45. Signature on return for a corporation or
14 limited liability company.
15 (a) Where the seller is a corporation, the return filed
16 on behalf of such corporation shall be signed by the
17 president, vice-president, secretary or treasurer or by the
18 properly accredited agent of such corporation.
19 (b) Where the seller is a limited liability company, the
20 return filed on behalf of the limited liability company shall
21 be signed by a manager, member, or properly accredited agent
22 of the limited liability company.
23 Section 50-50. Statement of prepaid tax. Each return
24 shall be accompanied by the statement of prepaid tax issued
25 pursuant to Section 10-35 for which credit is claimed.
26 Section 50-55. Rounding.
27 (a) If a total amount of less than $1 is payable,
28 refundable or creditable, such amount shall be disregarded if
29 it is less than 50 cents and shall be increased to $1 if it
30 is 50 cents or more.
31 (b) Any amount which is required to be shown or reported
-727- LRB9000671KDdvA
1 on any return or other document under this Code shall, if
2 such amount is not a whole-dollar amount, be increased to the
3 nearest whole-dollar amount in any case where the fractional
4 part of a dollar is 50 cents or more, and decreased to the
5 nearest whole-dollar amount where the fractional part of a
6 dollar is less than 50 cents.
7 Section 50-70. Selling price of property on return.
8 (a) For purposes of the use tax, any retailer filing a
9 return under Sections 50-5 through 50-140 shall also include
10 (for the purpose of paying tax thereon) the total tax covered
11 by such return upon the selling price of tangible personal
12 property purchased by him at retail from a retailer, but as
13 to which the tax imposed by Article 15 was not collected from
14 the retailer filing such return, and such retailer shall
15 remit the amount of such tax to the Department when filing
16 such return.
17 (b) For purposes of the service use tax, any serviceman
18 filing a return hereunder shall also include the total tax
19 upon the selling price of tangible personal property
20 purchased for use by him as an incident to a sale of service,
21 and such serviceman shall remit the amount of such tax to the
22 Department when filing such return.
23 Section 50-80. Separate return for certain registered
24 property. With respect to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, every retailer selling this
27 kind of tangible personal property shall file, with the
28 Department, upon a form to be prescribed and supplied by the
29 Department, a separate return for each such item of tangible
30 personal property which the retailer sells, except that
31 where, in the same transaction, a retailer of aircraft,
32 watercraft, motor vehicles or trailers transfers more than
-728- LRB9000671KDdvA
1 one aircraft, watercraft, motor vehicle or trailer to another
2 aircraft, watercraft, motor vehicle retailer or trailer
3 retailer for the purpose of resale, that seller for resale
4 may report the transfer of all aircraft, watercraft, motor
5 vehicles or trailers involved in that transaction to the
6 Department on the same uniform invoice-transaction reporting
7 return form.
8 Section 50-85. Retailer selling only vehicles,
9 watercraft, aircraft, or trailers. Any retailer who sells
10 only motor vehicles, watercraft, aircraft, or trailers that
11 are required to be registered with an agency of this State,
12 so that all retailers' occupation tax liability is required
13 to be reported, and is reported, on such transaction
14 reporting returns and who is not otherwise required to file
15 monthly or quarterly returns, need not file monthly or
16 quarterly returns. However, those retailers shall be
17 required to file returns on an annual basis.
18 Section 50-90. Transaction reporting return.
19 (a) The transaction reporting return, in the case of
20 motor vehicles or trailers that are required to be registered
21 with an agency of this State, shall be the same document as
22 the Uniform Invoice referred to in Section 5-402 of the
23 Illinois Vehicle Code and must show the name and address of
24 the seller; the name and address of the purchaser; the amount
25 of the selling price including the amount allowed by the
26 retailer for traded-in property, if any; the amount allowed
27 by the retailer for the traded-in tangible personal property,
28 if any, to the extent to which Section 5-120 allows an
29 exemption for the value of traded-in property; the balance
30 payable after deducting such trade-in allowance from the
31 total selling price; the amount of tax due from the retailer
32 with respect to such transaction; the amount of tax collected
-729- LRB9000671KDdvA
1 from the purchaser by the retailer on such transaction (or
2 satisfactory evidence that such tax is not due in that
3 particular instance, if that is claimed to be the fact); the
4 place and date of the sale; a sufficient identification of
5 the property sold; such other information as is required in
6 Section 5-402 of the Illinois Vehicle Code, and such other
7 information as the Department may reasonably require.
8 (b) The transaction reporting return in the case of
9 watercraft or aircraft must show the name and address of the
10 seller; the name and address of the purchaser; the amount of
11 the selling price including the amount allowed by the
12 retailer for traded-in property, if any; the amount allowed
13 by the retailer for the traded-in tangible personal property,
14 if any, to the extent to which Section 5-120 allows an
15 exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the retailer
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance, if that is claimed to be the fact); the
22 place and date of the sale, a sufficient identification of
23 the property sold, and such other information as the
24 Department may reasonably require.
25 (c) Such transaction reporting return shall be filed not
26 later than 20 days after the day of delivery of the item that
27 is being sold, but may be filed by the retailer at any time
28 sooner than that if he chooses to do so. The transaction
29 reporting return and tax remittance or proof of exemption
30 from the Illinois use tax may be transmitted to the
31 Department by way of the State agency with which or State
32 officer with whom the tangible personal property must be
33 titled or registered (if titling or registration is required)
34 if the Department and such agency or State officer determine
-730- LRB9000671KDdvA
1 that this procedure will expedite the processing of
2 applications for title or registration.
3 (d) With each such transaction reporting return, the
4 retailer shall remit the proper amount of tax due (or shall
5 submit satisfactory evidence that the sale is not taxable if
6 that is the case), to the Department or its agents, whereupon
7 the Department shall issue, in the purchaser's name, a use
8 tax receipt (or a certificate of exemption if the Department
9 is satisfied that the particular sale is tax exempt) which
10 such purchaser may submit to the agency with which, or State
11 officer with whom, he must title or register the tangible
12 personal property that is involved (if titling or
13 registration is required) in support of such purchaser's
14 application for an Illinois certificate or other evidence of
15 title or registration to such tangible personal property.
16 (e) No retailer's failure or refusal to remit tax under
17 this Code precludes a user, who has paid the proper tax to
18 the retailer, from obtaining his certificate of title or
19 other evidence of title or registration (if titling or
20 registration is required) upon satisfying the Department that
21 such user has paid the proper tax (if tax is due) to the
22 retailer. The Department shall adopt appropriate rules to
23 carry out the mandate of this subsection.
24 (f) If the user who would otherwise pay tax to the
25 retailer wants the transaction reporting return filed and the
26 payment of the tax or proof of exemption made to the
27 Department before the retailer is willing to take these
28 actions and such user has not paid the tax to the retailer,
29 such user may certify to the fact of such delay by the
30 retailer and may (upon the Department being satisfied of the
31 truth of such certification) transmit the information
32 required by the transaction reporting return and the
33 remittance for tax or proof of exemption directly to the
34 Department and obtain his tax receipt or exemption
-731- LRB9000671KDdvA
1 determination, in which event the transaction reporting
2 return and tax remittance (if a tax payment was required)
3 shall be credited by the Department to the proper retailer's
4 account with the Department, but without the 2.1% or 1.75%
5 discount provided for in Section 50-110 being allowed. When
6 the user pays the tax directly to the Department, he shall
7 pay the tax in the same amount and in the same form in which
8 it would be remitted if the tax had been remitted to the
9 Department by the retailer.
10 Section 50-120. Quarter-monthly payments.
11 (a) If the taxpayer's average monthly tax liability to
12 the Department under this Code excluding any liability for
13 prepaid sales tax to be remitted in accordance with Section
14 10-30, was $10,000 or more during the preceding 4 complete
15 calendar quarters, he shall file a return with the Department
16 each month by the 20th day of the month next following the
17 month during which such tax liability is incurred and shall
18 make payments to the Department on or before the 7th, 15th,
19 22nd and last day of the month during which such liability is
20 incurred. If the month during which such tax liability is
21 incurred began prior to January 1, 1985, each payment shall
22 be in an amount equal to 1/4 of the taxpayer's actual
23 liability for the month or an amount set by the Department
24 not to exceed 1/4 of the average monthly liability of the
25 taxpayer to the Department for the preceding 4 complete
26 calendar quarters (excluding the month of highest liability
27 and the month of lowest liability in such 4 quarter period).
28 If the month during which such tax liability is incurred
29 begins on or after January 1, 1985 and prior to January 1,
30 1987, each payment shall be in an amount equal to 22.5% of
31 the taxpayer's actual liability for the month or 27.5% of the
32 taxpayer's liability for the same calendar month of the
33 preceding year. If the month during which such tax liability
-732- LRB9000671KDdvA
1 is incurred begins on or after January 1, 1987 and prior to
2 January 1, 1988, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or
4 26.25% of the taxpayer's liability for the same calendar
5 month of the preceding year. If the month during which such
6 tax liability is incurred begins on or after January 1, 1988,
7 and prior to January 1, 1989, or begins on or after January
8 1, 1996, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 25% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1989, and prior to
13 January 1, 1996, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or 25%
15 of the taxpayer's liability for the same calendar month of
16 the preceding year or 100% of the taxpayer's actual liability
17 for the quarter monthly reporting period. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department by taxpayers having an average
22 monthly tax liability of $10,000 or more as determined in the
23 manner provided above shall continue until such taxpayer's
24 average monthly liability to the Department during the
25 preceding 4 complete calendar quarters (excluding the month
26 of highest liability and the month of lowest liability) is
27 less than $9,000, or until such taxpayer's average monthly
28 liability to the Department as computed for each calendar
29 quarter of the 4 preceding complete calendar quarter period
30 is less than $10,000. However, if a taxpayer can show the
31 Department that a substantial change in the taxpayer's
32 business has occurred which causes the taxpayer to anticipate
33 that his average monthly tax liability for the reasonably
34 foreseeable future will fall below $10,000, then such
-733- LRB9000671KDdvA
1 taxpayer may petition the Department for a change in such
2 taxpayer's reporting status. The Department shall change
3 such taxpayer's reporting status unless it finds that such
4 change is seasonal in nature and not likely to be long term.
5 If any such quarter monthly payment is not paid at the time
6 or in the amount required by this Section, then the
7 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
8 by 2.1% or 1.75% of the difference between the minimum amount
9 due as a payment and the amount of such quarter monthly
10 payment actually and timely paid, and the taxpayer shall be
11 liable for penalties and interest on such difference, except
12 insofar as the taxpayer has previously made payments for that
13 month to the Department in excess of the minimum payments
14 previously due as provided in Sections 50-5 through 50-140.
15 The Department shall make reasonable rules and regulations to
16 govern the quarter monthly payment amount and quarter monthly
17 payment dates for taxpayers who file on other than a calendar
18 monthly basis.
19 (b) Without regard to whether a taxpayer is required to
20 make quarter monthly payments as specified above, any
21 taxpayer who is required by Section 10-30 to collect and
22 remit prepaid taxes and has collected prepaid taxes which
23 average in excess of $25,000 per month during the preceding 2
24 complete calendar quarters, shall file a return with the
25 Department as required by Section 10-40 and shall make
26 payments to the Department on or before the 7th, 15th, 22nd
27 and last day of the month during which such liability is
28 incurred. If the month during which such tax liability is
29 incurred began prior to the effective date of this amendatory
30 Act of 1985, each payment shall be in an amount not less than
31 22.5% of the taxpayer's actual liability under Section 10-30.
32 If the month during which such tax liability is incurred
33 begins on or after January 1, 1986, each payment shall be in
34 an amount equal to 22.5% of the taxpayer's actual liability
-734- LRB9000671KDdvA
1 for the month or 27.5% of the taxpayer's liability for the
2 same calendar month of the preceding calendar year. If the
3 month during which such tax liability is incurred begins on
4 or after January 1, 1987, each payment shall be in an amount
5 equal to 22.5% of the taxpayer's actual liability for the
6 month or 26.25% of the taxpayer's liability for the same
7 calendar month of the preceding year. The amount of such
8 quarter monthly payments shall be credited against the final
9 tax liability of the taxpayer's return for that month filed
10 under Sections 50-5 through 50-140 or Section 10-40, as the
11 case may be. Once applicable, the requirement of the making
12 of quarter monthly payments to the Department pursuant to
13 this subsection shall continue until such taxpayer's average
14 monthly prepaid tax collections during the preceding 2
15 complete calendar quarters is $25,000 or less. If any such
16 quarter monthly payment is not paid at the time or in the
17 amount required, the taxpayer shall be liable for penalties
18 and interest on such difference, except insofar as the
19 taxpayer has previously made payments for that month in
20 excess of the minimum payments previously due.
21 Section 50-125. Credit memorandum.
22 (a) If any payment provided for in Sections 50-5 through
23 50-140 exceeds the taxpayer's liabilities under this Code, as
24 shown on an original monthly return, the Department shall, if
25 requested by the taxpayer, issue to the taxpayer a credit
26 memorandum no later than 30 days after the date of payment.
27 The credit evidenced by such credit memorandum may be
28 assigned by the taxpayer to a similar taxpayer under this
29 Code, in accordance with reasonable rules and regulations to
30 be prescribed by the Department. If no such request is made,
31 the taxpayer may credit such excess payment against tax
32 liability subsequently to be remitted to the Department under
33 this Code, in accordance with reasonable rules and
-735- LRB9000671KDdvA
1 regulations prescribed by the Department.
2 (b) For purposes of the use tax, if any such payment
3 provided for in Sections 50-5 through 50-140 exceeds the
4 taxpayer's liabilities under this Code, as shown by an
5 original monthly return, the Department shall issue to the
6 taxpayer a credit memorandum no later than 30 days after the
7 date of payment, which memorandum may be submitted by the
8 taxpayer to the Department in payment of tax liability
9 subsequently to be remitted by the taxpayer to the Department
10 or be assigned by the taxpayer to a similar taxpayer under
11 this Code, in accordance with reasonable rules and
12 regulations to be prescribed by the Department, except that
13 if such excess payment is shown on an original monthly return
14 and is made after December 31, 1986, no credit memorandum
15 shall be issued, unless requested by the taxpayer. If no
16 such request is made, the taxpayer may credit such excess
17 payment against tax liability subsequently to be remitted by
18 the taxpayer to the Department under this Code, in accordance
19 with reasonable rules and regulations prescribed by the
20 Department.
21 (c) If the Department subsequently determines that all
22 or any part of the credit taken was not actually due to the
23 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount
24 shall be reduced by 2.1% or 1.75% of the difference between
25 the credit taken and that actually due, and the taxpayer
26 shall be liable for penalties and interest on such
27 difference.
28 Section 50-130. Credit for motor fuel retailer. If a
29 retailer of motor fuel is entitled to a credit under Section
30 10-30 which exceeds the taxpayer's liability to the
31 Department under Article 10 for the month which the taxpayer
32 is filing a return, the Department shall issue the taxpayer a
33 credit memorandum for the excess.
-736- LRB9000671KDdvA
1 Section 50-140. Fair reports.
2 (a) Any person who promotes, organizes, provides retail
3 selling space for concessionaires or other types of sellers
4 at the Illinois State Fair, DuQuoin State Fair, county fairs,
5 local fairs, art shows, flea markets and similar exhibitions
6 or events, including any transient merchant as defined by
7 Section 2 of the Transient Merchant Act of 1987, is required
8 to file a report with the Department providing the name of
9 the merchant's business, the name of the person or persons
10 engaged in merchant's business, the permanent address and
11 Illinois Retailers Occupation Tax Registration Number of the
12 merchant, the dates and location of the event and other
13 reasonable information that the Department may require. The
14 report must be filed not later than the 20th day of the month
15 next following the month during which the event with retail
16 sales was held. Any person who fails to file a report
17 required by this Section commits a business offense and is
18 subject to a fine not to exceed $250.
19 (b) Any person engaged in the business of selling
20 tangible personal property at retail as a concessionaire or
21 other type of seller at the Illinois State Fair, county
22 fairs, art shows, flea markets and similar exhibitions or
23 events, or any transient merchants, as defined by Section 2
24 of the Transient Merchant Act of 1987, may be required to
25 make a daily report of the amount of such sales to the
26 Department and to make a daily payment of the full amount of
27 tax due. The Department shall impose this requirement when
28 it finds that there is a significant risk of loss of revenue
29 to the State at such an exhibition or event. Such a finding
30 shall be based on evidence that a substantial number of
31 concessionaires or other sellers who are not residents of
32 Illinois will be engaging in the business of selling tangible
33 personal property at retail at the exhibition or event, or
34 other evidence of a significant risk of loss of revenue to
-737- LRB9000671KDdvA
1 the State. The Department shall notify concessionaires and
2 other sellers affected by the imposition of this requirement.
3 In the absence of notification by the Department, the
4 concessionaires and other sellers shall file their returns as
5 otherwise required in Sections 50-5 through 50-140.
6 (35 ILCS 115/10a) (from Ch. 120, par. 439.110a)
7 Section 35-70. Exemption from bonding. Sec. 10a.
8 Notwithstanding any other provision to the contrary, any
9 person who is required to file a bond pursuant to any
10 provision of this Code Act and who has continuously complied
11 with all provisions of this Code Act for 24 or more
12 consecutive months, shall no longer be required to comply
13 with the bonding provisions of this Code Act so long as such
14 person continues his compliance with the provisions of this
15 Code Act.
16 (Source: P.A. 84-1408.)
17 Section 45-5. Applicability of Article. The provisions
18 of this Article shall apply to the retailers' occupation tax,
19 the use tax, the service occupation tax, and the service use
20 tax. To the extent that any provision specifically applying
21 to the use tax, the service occupation tax, or the service
22 use tax is inconsistent with a general provision applying to
23 all of the taxes, the specific provision shall control.
24 Section 45-10. Records to be kept. Every person engaged
25 in the business of selling tangible personal property at
26 retail in this State shall keep records and books of all
27 sales of tangible personal property, together with invoices,
28 bills of lading, sales records, copies of bills of sale,
29 inventories prepared as of December 31 of each year or
30 otherwise annually as has been the custom in the specific
31 trade and other pertinent papers and documents. Every person
-738- LRB9000671KDdvA
1 who is engaged in the business of selling tangible personal
2 property at retail in this State and who, in connection with
3 such business, also engages in other activities (including,
4 but not limited to, engaging in a service occupation) shall
5 keep such additional records and books of all such activities
6 as will accurately reflect the character and scope of such
7 activities and the amount of receipts realized therefrom. The
8 Department may adopt rules that establish requirements,
9 including record forms and formats, for records required to
10 be kept and maintained by taxpayers. For purposes of this
11 Section, "records" means all data maintained by the taxpayer,
12 including data on paper, microfilm, microfiche or any type of
13 machine-sensible data compilation.
14 All books and records and other papers and documents
15 which are required by this Code to be kept shall be kept in
16 the English language and shall, at all times during business
17 hours of the day, be subject to inspection by the Department
18 or its duly authorized agents and employees.
19 To support deductions made on the tax return form, or
20 authorized under this Code, on account of receipts from
21 isolated or occasional sales of tangible personal property,
22 on account of receipts from sales of tangible personal
23 property for resale, on account of receipts from sales to
24 governmental bodies or other exempted types of purchasers, on
25 account of receipts from sales of tangible personal property
26 in interstate commerce, and on account of receipts from any
27 other kind of transaction that is not taxable under this
28 Code, entries in any books, records or other pertinent papers
29 or documents of the taxpayer in relation thereto shall be in
30 detail sufficient to show the name and address of the
31 taxpayer's customer in each such transaction, the character
32 of every such transaction, the date of every such
33 transaction, the amount of receipts realized from every such
34 transaction and such other information as may be necessary to
-739- LRB9000671KDdvA
1 establish the non-taxable character of such transaction under
2 this Code.
3 Except in the case of a sale to a purchaser who will
4 always resell and deliver the property to his customers
5 outside Illinois, anyone claiming that he has made a
6 nontaxable sale for resale in some form as tangible personal
7 property shall also keep a record of the purchaser's
8 registration number or resale number with the Department.
9 It shall be presumed that all sales of tangible personal
10 property are subject to tax under this Code until the
11 contrary is established, and the burden of proving that a
12 transaction is not taxable hereunder shall be upon the person
13 who would be required to remit the tax to the Department if
14 such transaction is taxable. In the course of any audit or
15 investigation or hearing by the Department with reference to
16 a given taxpayer, if the Department finds that the taxpayer
17 lacks documentary evidence needed to support the taxpayer's
18 claim to exemption from tax hereunder, the Department is
19 authorized to notify the taxpayer in writing to produce such
20 evidence, and the taxpayer shall have 60 days subject to the
21 right in the Department to extend this period either on
22 request for good cause shown or on its own motion from the
23 date when such notice is sent to the taxpayer by certified or
24 registered mail (or delivered to the taxpayer if the notice
25 is served personally) in which to obtain and produce such
26 evidence for the Department's inspection, failing which the
27 matter shall be closed, and the transaction shall be
28 conclusively presumed to be taxable hereunder.
29 Books and records and other papers reflecting gross
30 receipts received during any period with respect to which the
31 Department is authorized to issue notices of tax liability as
32 provided by Sections 50-145 and 50-150 of this Code shall be
33 preserved until the expiration of such period unless the
34 Department, in writing, shall authorize their destruction or
-740- LRB9000671KDdvA
1 disposal prior to such expiration.
2 (35 ILCS 115/11) (from Ch. 120, par. 439.111)
3 Section 45-15. Records; use tax; service occupation tax;
4 service use tax. For purposes of the use tax, the service
5 occupation tax, and the service use tax, Sec. 11. every
6 retailer, supplier, or serviceman required or authorized to
7 collect taxes hereunder and every person subject to the taxes
8 imposed by Article 15, Article 20, or Article 25 serviceman
9 making sales of service in this State on or after the
10 effective date hereof shall keep such records, receipts,
11 invoices and other pertinent books, documents, memoranda and
12 papers as the Department shall require, in such form as the
13 Department shall require. The Department may adopt rules that
14 establish requirements, including record forms and formats,
15 for records required to be kept and maintained by taxpayers.
16 For purposes of this Section, "records" means all data
17 maintained by the taxpayer, including data on paper,
18 microfilm, microfiche or any type of machine-sensible data
19 compilation. For the purpose of administering and enforcing
20 the provisions hereof, the Department, or any officer or
21 employee of the Department designated, in writing, by the
22 Director thereof, may hold investigations and hearings
23 concerning any matters covered herein and may examine any
24 books, papers, records, documents or memoranda of (i) any
25 retailer or purchaser bearing upon the sales or purchases of
26 tangible personal property, the privilege of using which is
27 taxed under Article 15, (ii) any supplier or serviceman
28 bearing upon the sales of services or the sales of tangible
29 personal property to servicemen, or (iii) any serviceman or
30 any taxable purchaser for use for purposes of Article 25, and
31 may require the attendance of such person or any officer or
32 employee of such person, or of any person having knowledge of
33 the facts, and may take testimony and require proof for its
-741- LRB9000671KDdvA
1 information.
2 (Source: P.A. 88-480.)
3 (35 ILCS 115/12) (from Ch. 120, par. 439.112)
4 Section 90-40. Applicability of the Uniform Penalty and
5 Interest Act. Sec. 12. All of the provisions of Sections 1d,
6 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2a, 2b, 2c, 3 (except as to the
7 disposition by the Department of the tax collected under this
8 Act), 4 (except that the time limitation provisions shall run
9 from the date when the tax is due rather than from the date
10 when gross receipts are received), 5 (except that the time
11 limitation provisions on the issuance of notices of tax
12 liability shall run from the date when the tax is due rather
13 than from the date when gross receipts are received), 5a, 5b,
14 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of the
15 "Retailers' Occupation Tax Act" which are not inconsistent
16 with this Act, and Section 3-7 of the Uniform Penalty and
17 Interest Act, which are not inconsistent with this Code,
18 shall apply, as far as practicable, to the subject matter of
19 this Code Act to the same extent as if such provisions were
20 included herein.
21 (Source: P.A. 86-1490; 87-205.)
22 (35 ILCS 115/13) (from Ch. 120, par. 439.113)
23 Section 90-5. Appointment of Secretary of State for
24 service of process. Any non-resident of this State who
25 accepts the privilege extended by the laws of this State to
26 non-residents of acting as a retailer maintaining a place of
27 business within this State within the meaning of Section
28 5-110 or as a serviceman maintaining a place of business in
29 this State within the meaning of Section 5-130, any resident
30 of this State who incurs tax liability under Article 15 as a
31 seller or Article 25 as a serviceman and who subsequently
32 removes from this State or conceals his whereabouts, and Sec.
-742- LRB9000671KDdvA
1 13. any person (resident or non-resident) who incurs tax
2 liability under Article 10 as a retailer, under Article 15 or
3 Article 25 as a user in this State, or under Article 20 this
4 Act as a serviceman in this State, and who removes from this
5 State or conceals his whereabouts, shall be deemed thereby to
6 appoint the Secretary of State of Illinois his agent for the
7 service of process or notice in any judicial or
8 administrative proceeding under this Code Act. Such process
9 or notice shall be served by the Department on the Secretary
10 of State by leaving, at the office of the Secretary of State
11 at least 15 days before the return day of such process or
12 notice, a true and certified copy thereof, and by sending to
13 the taxpayer by registered or certified mail, postage
14 prepaid, a like and true certified copy, with an endorsement
15 thereon of the service upon said Secretary of State,
16 addressed to such taxpayer at his last known address.
17 Service of process or notice in the manner provided for
18 in this Section, under the circumstances specified in this
19 Section, shall be of the same force and validity as if served
20 upon the taxpayer personally within this State. Proof of such
21 service upon the taxpayer in this State through the Secretary
22 of State as his agent and by mailing to the last known
23 address of the taxpayer may be made in such judicial or
24 administrative proceeding by the affidavit of the Director of
25 Revenue, or by his duly authorized representative who made
26 such service, with a copy of the process or notice that was
27 so served attached to such affidavit.
28 (Source: P.A. 85-1135.)
29 Section 80-5. Violations under the retailers' occupation
30 tax. This Section applies to the retailers' occupation tax
31 only. When the amount due is under $300, any person engaged
32 in the business of selling tangible personal property at
33 retail in this State who fails to file a return, or who files
-743- LRB9000671KDdvA
1 a fraudulent return, or any officer, employee or agent of a
2 corporation, member, employee or agent of a partnership, or
3 manager, member, agent, or employee of a limited liability
4 company engaged in the business of selling tangible personal
5 property at retail in this State who, as such officer,
6 employee, agent, manager, or member is under a duty to file a
7 return, or any officer, agent or employee of a corporation,
8 member, agent, or employee of a partnership, or manager,
9 member, agent, or employee of a limited liability company
10 engaged in the business of selling tangible personal property
11 at retail in this State who files or causes to be filed or
12 signs or causes to be signed a fraudulent return filed on
13 behalf of such corporation or limited liability company, or
14 any accountant or other agent who knowingly enters false
15 information on the return of any taxpayer under Article 10,
16 is guilty of a Class 4 felony.
17 Any person who or any officer or director of any
18 corporation, partner or member of any partnership, or manager
19 or member of a limited liability company that: (a) violates
20 Sections 35-5 through 35-45 or (b) fails to keep books and
21 records, or fails to produce books and records as required by
22 Section 45-10 or (c) willfully violates a rule or regulation
23 of the Department for the administration and enforcement of
24 Article 10 is guilty of a Class A misdemeanor. Any person,
25 manager or member of a limited liability company, or officer
26 or director of any corporation who engages in the business of
27 selling tangible personal property at retail after the
28 certificate of registration of that person, corporation,
29 limited liability company, or partnership has been revoked is
30 guilty of a Class A misdemeanor. Each day such person,
31 corporation, or partnership is engaged in business without a
32 certificate of registration or after the certificate of
33 registration of that person, corporation, or partnership has
34 been revoked constitutes a separate offense.
-744- LRB9000671KDdvA
1 Any purchaser who obtains a registration number or resale
2 number from the Department through misrepresentation, or who
3 represents to a seller that such purchaser has a registration
4 number or a resale number from the Department when he knows
5 that he does not, or who uses his registration number or
6 resale number to make a seller believe that he is buying
7 tangible personal property for resale when such purchaser in
8 fact knows that this is not the case is guilty of a Class 4
9 felony.
10 Any distributor, supplier or other reseller of motor fuel
11 registered pursuant to Sections 35-5 through 35-50 who fails
12 to collect the prepaid tax on invoiced gallons of motor fuel
13 sold or who fails to deliver a statement of tax paid to the
14 purchaser or to the Department as required by Sections 10-30
15 and 10-35, respectively, shall be guilty of a Class A
16 misdemeanor if the amount due is under $300, and a Class 4
17 felony if the amount due is $300 or more.
18 When the amount due is under $300, any person who accepts
19 money that is due to the Department under Article 10 from a
20 taxpayer for the purpose of acting as the taxpayer's agent to
21 make the payment to the Department, but who fails to remit
22 such payment to the Department when due is guilty of a Class
23 4 felony.
24 Any seller who collects or attempts to collect an amount
25 (however designated) which purports to reimburse such seller
26 for retailers' occupation tax liability measured by receipts
27 which such seller knows are not subject to retailers'
28 occupation tax, or any seller who knowingly over-collects or
29 attempts to over-collect an amount purporting to reimburse
30 such seller for retailers' occupation tax liability in a
31 transaction which is subject to the tax that is imposed by
32 Article 10, shall be guilty of a Class 4 felony for each such
33 offense. This paragraph does not apply to an amount
34 collected by the seller as reimbursement for the seller's
-745- LRB9000671KDdvA
1 retailers' occupation tax liability on receipts which are
2 subject to tax under Article 10 as long as such collection is
3 made in compliance with the tax collection brackets
4 prescribed by the Department in its rules and regulations.
5 When the amount due is $300 or more, any person engaged
6 in the business of selling tangible personal property at
7 retail in this State who fails to file a return, or who files
8 a fraudulent return, or any officer, employee or agent of a
9 corporation, member, employee or agent of a partnership, or
10 manager, member, agent, or employee of a limited liability
11 company engaged in the business of selling tangible personal
12 property at retail in this State who, as such officer,
13 employee, agent, manager, or member is under a duty to file a
14 return and who fails to file such return or any officer,
15 agent, or employee of a corporation, member, agent or
16 employee of a partnership, or manager, member, agent, or
17 employee of a limited liability company engaged in the
18 business of selling tangible personal property at retail in
19 this State who files or causes to be filed or signs or causes
20 to be signed a fraudulent return filed on behalf of such
21 corporation or limited liability company, or any accountant
22 or other agent who knowingly enters false information on the
23 return of any taxpayer under Article 10 is guilty of a Class
24 3 felony.
25 When the amount due is $300 or more, any person engaged
26 in the business of selling tangible personal property at
27 retail in this State who accepts money that is due to the
28 Department under Article 10 from a taxpayer for the purpose
29 of acting as the taxpayer's agent to make payment to the
30 Department but fails to remit such payment to the Department
31 when due, is guilty of a Class 3 felony.
32 Any person whose principal place of business is in this
33 State and who is charged with a violation under this Section
34 shall be tried in the county where his principal place of
-746- LRB9000671KDdvA
1 business is located unless he asserts a right to be tried in
2 another venue.
3 Any taxpayer or agent of a taxpayer who with the intent
4 to defraud purports to make a payment due to the Department
5 by issuing or delivering a check or other order upon a real
6 or fictitious depository for the payment of money, knowing
7 that it will not be paid by the depository, shall be guilty
8 of a deceptive practice in violation of Section 17-1 of the
9 Criminal Code of 1961.
10 A prosecution for any act in violation of this Section
11 may be commenced at any time within 3 years of the commission
12 of that act.
13 (35 ILCS 115/15) (from Ch. 120, par. 439.115)
14 Section 80-10. Violations under the use tax, the service
15 occupation tax, and the service use tax.
16 (a) This Section applies to the use tax, the service
17 occupation tax, and the service use tax. Sec. 15. When the
18 amount due is under $300, any person subject to the
19 provisions hereof who fails to file a return, or who violates
20 any other provision of Sections 50-5 through 50-140 or
21 Section 50-155 Section 9 or Section 10 hereof, or who fails
22 to keep books and records as required herein, or who files a
23 fraudulent return, or who wilfully violates any rule or
24 regulation of the Department for the administration and
25 enforcement of the provisions hereof, or any officer or agent
26 of a corporation, or manager, member, or agent of a limited
27 liability company, subject hereto who signs a fraudulent
28 return filed on behalf of such corporation or limited
29 liability company, or any accountant or other agent who
30 knowingly enters false information on the return of any
31 taxpayer under Articles 15, 20, or 25 this Act, or any person
32 who violates any of the provisions of Sections 15-5, 20-5,
33 25-5, 60-20, or 80-20 3, 5 or 7 hereof, or any purchaser who
-747- LRB9000671KDdvA
1 obtains a registration number or resale number from the
2 Department through misrepresentation, or who represents to a
3 seller that such purchaser has a registration number or a
4 resale number from the Department when he knows that he does
5 not, or who uses his registration number or resale number to
6 make a seller believe that he is buying tangible personal
7 property for resale when such purchaser in fact knows that
8 this is not the case, is guilty of a Class 4 felony.
9 Any person who violates any provision of Sections 35-5
10 through 35-45 Section 6 hereof, or who engages in the
11 business of (i) selling tangible personal property at retail
12 or (ii) making sales of service after his certificate of
13 registration under this Act has been revoked in accordance
14 with Section 90-40 12 of this Act, is guilty of a Class 4
15 felony. Each day any such person is engaged in business in
16 violation of Sections 35-5 through 35-45 Section 6, or after
17 his certificate of registration under this Act has been
18 revoked, constitutes a separate offense.
19 When the amount due is under $300, any person who accepts
20 money that is due to the Department under Articles 15, 20, or
21 25 this Act from a taxpayer for the purpose of acting as the
22 taxpayer's agent to make the payment to the Department, but
23 who fails to remit such payment to the Department when due is
24 guilty of a Class 4 felony. Any such person who purports to
25 make such payment by issuing or delivering a check or other
26 order upon a real or fictitious depository for the payment of
27 money, knowing that it will not be paid by the depository,
28 shall be guilty of a deceptive practice in violation of
29 Section 17-1 of the Criminal Code of 1961, as amended.
30 When the amount due is $300 or more, any person subject
31 to the provisions hereof who fails to file a return, or who
32 violates any other provision of Sections 50-5 through 50-140
33 Section 9 or Section 50-155 10 hereof, or who fails to keep
34 books and records as required herein, or who files a
-748- LRB9000671KDdvA
1 fraudulent return, or who wilfully violates any rule or
2 regulation of the Department for the administration and
3 enforcement of the provisions hereof, or any officer or agent
4 of a corporation, or manager, member, or agent of a limited
5 liability company, subject hereto who signs a fraudulent
6 return filed on behalf of such corporation or limited
7 liability company, or any accountant or other agent who
8 knowingly enters false information on the return of any
9 taxpayer under Articles 15, 20, or 25 this Act, or any person
10 who violates any of the provisions of Sections 15-5, 20-5,
11 25-5, 60-20, or 80-20 3, 5 or 7 hereof, or any purchaser who
12 obtains a registration number or resale number from the
13 Department through misrepresentation, or who represents to a
14 seller that such purchaser has a registration number or a
15 resale number from the Department when he knows that he does
16 not, or who uses his registration number or resale number to
17 make a seller believe that he is buying tangible personal
18 property for resale when such purchaser in fact knows that
19 this is not the case, is guilty of a Class 3 felony.
20 When the amount due is $300 or more, any person who
21 accepts money that is due to the Department under Articles
22 15, 20, or 25 this Act from a taxpayer for the purpose of
23 acting as the taxpayer's agent to make the payment to the
24 Department, but who fails to remit such payment to the
25 Department when due is guilty of a Class 3 felony. Any such
26 person who purports to make such payment by issuing or
27 delivering a check or other order upon a real or fictitious
28 depository for the payment of money, knowing that it will not
29 be paid by the depository shall be guilty of a deceptive
30 practice in violation of Section 17-1 of the Criminal Code of
31 1961, as amended.
32 Any seller or serviceman who collects or attempts to
33 collect use tax, service occupation tax, or service use tax
34 measured by receipts or selling prices which such seller or
-749- LRB9000671KDdvA
1 serviceman knows are not subject to use tax, service
2 occupation tax, or service use tax, or any serviceman who
3 collects or attempts to collect an amount (however
4 designated) which purports to reimburse such serviceman for
5 service occupation tax liability measured by receipts or
6 selling prices which such serviceman knows are not subject to
7 service occupation tax liability, or any seller or serviceman
8 who knowingly over-collects or attempts to over-collect use
9 tax, service occupation tax, or service use tax or or an
10 amount purporting to be reimbursement for service occupation
11 tax liability in a transaction which is subject to the taxes
12 tax that are imposed by Articles 15, 20, or 25 is imposed by
13 this Act, shall be guilty of a Class 4 felony for each such
14 offense. This paragraph does not apply to an amount collected
15 (i) by the seller or serviceman as use tax or service use tax
16 on receipts or selling prices or (ii) by the serviceman as
17 reimbursement for the serviceman's service occupation tax
18 liability on receipts or selling prices which are subject to
19 tax under Articles 15, 20, or 25 this Act, as long as such
20 collection is made in compliance with the tax collection
21 brackets prescribed by the Department in its rules and
22 regulations.
23 A prosecution for any act in violation of this Section
24 may be commenced at any time within 3 years of the commission
25 of that act.
26 This Section does not apply if the violation in a
27 particular case also constitutes a criminal violation of
28 Section 80-5 the Retailers' Occupation Tax Act or the Use Tax
29 Act.
30 (b) For purposes of the use tax and the service use tax,
31 any taxpayer or agent of a taxpayer who with the intent to
32 defraud purports to make a payment due to the Department by
33 issuing or delivering a check or other order upon a real or
34 fictitious depository for the payment of money, knowing that
-750- LRB9000671KDdvA
1 it will not be paid by the depository, shall be guilty of a
2 deceptive practice in violation of Section 17-1 of the
3 Criminal Code of 1961.
4 (c) For purposes of the service occupation tax, if the
5 violation in a particular case also constitutes a criminal
6 violation of the provisions applying to the use tax then this
7 Section shall not apply to the violation of the provisions
8 applying to the service occupation tax.
9 (d) For purposes of the service use tax, if the
10 violation in a particular case also constitutes a criminal
11 violation of the provisions applying to the use tax or the
12 provisions applying to the service occupation tax then this
13 Section shall not apply to the violation of the provisions
14 applying to the service use tax.
15 (Source: P.A. 88-480.)
16 (35 ILCS 115/16) (from Ch. 120, par. 439.116)
17 Section 20-10. Tax additional. Sec. 16. The tax herein
18 imposed in this Article shall be in addition to all other
19 occupation or privilege taxes imposed by the State of
20 Illinois or by any municipal corporation or political
21 subdivision thereof.
22 (Source: Laws 1961, p. 1745.)
23 Section 55-5. Erroneous payment; credit or refund;
24 retailers' occupation tax. If it appears, after claim
25 therefor filed with the Department, that an amount of tax or
26 penalty or interest has been paid which was not due under
27 Article 10, whether as the result of a mistake of fact or an
28 error of law, except as hereinafter provided, then the
29 Department shall issue a credit memorandum or refund to the
30 person who made the erroneous payment or, if that person died
31 or became a person under legal disability, to his or her
32 legal representative, as such. For purposes of this Section,
-751- LRB9000671KDdvA
1 the tax is deemed to be erroneously paid by a retailer when
2 the manufacturer of a motor vehicle sold by the retailer
3 accepts the return of that automobile and refunds to the
4 purchaser the selling price of that vehicle as provided in
5 the New Vehicle Buyer Protection Act. When a motor vehicle is
6 returned for a refund of the purchase price under the New
7 Vehicle Buyer Protection Act, the Department shall issue a
8 credit memorandum or a refund for the amount of tax paid by
9 the retailer under Article 10 attributable to the initial
10 sale of that vehicle. Claims submitted by the retailer are
11 subject to the same restrictions and procedures provided for
12 in this Code. If it is determined that the Department should
13 issue a credit memorandum or refund, the Department may first
14 apply the amount thereof against any tax or penalty or
15 interest due or to become due under this Code, the Municipal
16 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
17 Municipal Service Occupation Tax Act, the County Retailers'
18 Occupation Tax Act, the County Supplementary Retailers'
19 Occupation Tax Act, the County Service Occupation Tax Act,
20 the County Supplementary Service Occupation Tax Act, the
21 County Use Tax Act, the County Supplementary Use Tax Act,
22 Section 4 of the Water Commission Act of 1985, subsections
23 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
24 District Act, or subsections (e), (f) and (g) of Section 4.03
25 of the Regional Transportation Authority Act, from the person
26 who made the erroneous payment. If no tax or penalty or
27 interest is due and no proceeding is pending to determine
28 whether such person is indebted to the Department for tax or
29 penalty or interest, the credit memorandum or refund shall be
30 issued to the claimant; or (in the case of a credit
31 memorandum) the credit memorandum may be assigned and set
32 over by the lawful holder thereof, subject to reasonable
33 rules of the Department, to any other person who is subject
34 to this Code, the Municipal Retailers' Occupation Tax Act,
-752- LRB9000671KDdvA
1 the Municipal Use Tax Act, the Municipal Service Occupation
2 Tax Act, the County Retailers' Occupation Tax Act, the County
3 Supplementary Retailers' Occupation Tax Act, the County
4 Service Occupation Tax Act, the County Supplementary Service
5 Occupation Tax Act, the County Use Tax Act, the County
6 Supplementary Use Tax Act, Section 4 of the Water Commission
7 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
8 the Local Mass Transit District Act, or subsections (e), (f)
9 and (g) of Section 4.03 of the Regional Transportation
10 Authority Act, and the amount thereof applied by the
11 Department against any tax or penalty or interest due or to
12 become due under this Code, the Municipal Retailers'
13 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
14 Service Occupation Tax Act, the County Retailers' Occupation
15 Tax Act, the County Supplementary Retailers' Occupation Tax
16 Act, the County Service Occupation Tax Act, the County
17 Supplementary Service Occupation Tax Act, the County Use Tax
18 Act, the County Supplementary Use Tax Act, Section 4 of the
19 Water Commission Act of 1985, subsections (b), (c) and (d) of
20 Section 5.01 of the Local Mass Transit District Act, or
21 subsections (e), (f) and (g) of Section 4.03 of the Regional
22 Transportation Authority Act, from such assignee.
23 No claim shall be allowed for any amount paid to the
24 Department, whether paid voluntarily or involuntarily, if
25 paid in total or partial liquidation of an assessment which
26 had become final before the claim for credit or refund to
27 recover the amount so paid is filed with the Department, or
28 if paid in total or partial liquidation of a judgment or
29 order of court.
30 No credit may be allowed or refund made for any amount
31 paid by or collected from any claimant unless it appears (a)
32 that the claimant bore the burden of such amount and has not
33 been relieved thereof nor reimbursed therefor and has not
34 shifted such burden directly or indirectly through inclusion
-753- LRB9000671KDdvA
1 of such amount in the price of the tangible personal property
2 sold by him or her or in any manner whatsoever; and that no
3 understanding or agreement, written or oral, exists whereby
4 he or she or his or her legal representative may be relieved
5 of the burden of such amount, be reimbursed therefor or may
6 shift the burden thereof; or (b) that he or she or his or her
7 legal representative has repaid unconditionally such amount
8 to his or her vendee (1) who bore the burden thereof and has
9 not shifted such burden directly or indirectly, in any manner
10 whatsoever; (2) who, if he or she has shifted such burden,
11 has repaid unconditionally such amount to his own vendee; and
12 (3) who is not entitled to receive any reimbursement therefor
13 from any other source than from his or her vendor, nor to be
14 relieved of such burden in any manner whatsoever. No credit
15 may be allowed or refund made for any amount paid by or
16 collected from any claimant unless it appears that the
17 claimant has unconditionally repaid, to the purchaser, any
18 amount collected from the purchaser and retained by the
19 claimant with respect to the same transaction under Article
20 15.
21 If a retailer who has failed to pay retailers' occupation
22 tax on gross receipts from retail sales is required by the
23 Department to pay such tax, such retailer, without filing any
24 formal claim with the Department, shall be allowed to take
25 credit against such retailers' occupation tax liability to
26 the extent, if any, to which such retailer has paid an amount
27 equivalent to retailers' occupation tax or has paid use tax
28 in error to his or her vendor or vendors of the same tangible
29 personal property which such retailer bought for resale and
30 did not first use before selling it, and no penalty or
31 interest shall be charged to such retailer on the amount of
32 such credit. However, when such credit is allowed to the
33 retailer by the Department, the vendor is precluded from
34 refunding any of that tax to the retailer and filing a claim
-754- LRB9000671KDdvA
1 for credit or refund with respect thereto with the
2 Department. The provisions of this amendatory Act shall be
3 applied retroactively, regardless of the date of the
4 transaction.
5 (35 ILCS 115/17) (from Ch. 120, par. 439.117)
6 Section 55-10. Erroneous payment; creditor refund; use
7 tax; service occupation tax; service use tax.
8 (a) For purposes of the use tax, the service occupation
9 tax, and the service use tax, Sec. 17. if it shall appear
10 that an amount of tax or penalty or interest has been paid in
11 error under Article 15, Article 20, or Article 25 hereunder
12 directly to the Department by (i) a purchaser, as
13 distinguished from the retailer, (ii) a serviceman, or (iii)
14 a purchaser, as distinguished from the serviceman, whether
15 such amount be paid through a mistake of fact or an error of
16 law, such purchaser or serviceman may file a claim for credit
17 or refund with the Department. If it shall appear that an
18 amount of tax or penalty or interest has been paid in error
19 to the Department under Article 15, Article 20, or Article 25
20 hereunder by (i) a retailer who is required or authorized to
21 collect and remit the tax imposed by Article 15, (ii) a
22 supplier who is required or authorized to collect and remit
23 the Service Occupation tax imposed by Article 20, or (iii) a
24 serviceman who is required or authorized to collect the tax
25 imposed by Article 25, whether such amount be paid through a
26 mistake of fact or an error of law, such retailer, supplier,
27 or serviceman may file a claim for credit or refund with the
28 Department, provided that no credit or refund shall be
29 allowed nor any refund made for any amount paid by any such
30 retailer, supplier, or serviceman unless it shall appear that
31 he bore the burden of such amount and did not shift the
32 burden thereof to anyone else (as in the case of a duplicated
33 tax payment which the retailer, supplier, or serviceman made
-755- LRB9000671KDdvA
1 to the Department and did not collect from anyone else), or
2 unless it shall appear that he or she or his or her legal
3 representative has unconditionally repaid such amount to his
4 vendee (1) who bore the burden thereof and has not shifted
5 such burden directly or indirectly in any manner whatsoever;
6 (2) who, if he has shifted such burden, has repaid
7 unconditionally such amount to his or her own vendee;, and
8 (3) who is not entitled to receive any reimbursement therefor
9 from any other source than from his vendor supplier, nor to
10 be relieved of such burden in any other manner whatsoever.
11 (b) For purposes of the use tax and the service use tax,
12 if it shall appear that an amount of tax has been paid in
13 error under Article 15 or Article 25 by (i) the purchaser to
14 a retailer or (ii) the purchaser to a serviceman, who
15 retained such tax as reimbursement for his or her tax
16 liability on the same sale under Article 10, in the case of a
17 retailer, or Article 20, in the case of a serviceman, and who
18 remitted the amount involved to the Department under Article
19 10 or Article 20, whether such amount be paid through a
20 mistake of fact or an error of law, the procedure for
21 recovering such tax shall be as prescribed in this Article
22 55.
23 (c) For purposes of the use tax, if a retailer who has
24 failed to pay use tax on gross receipts from retail sales is
25 required by the Department to pay such tax, such retailer,
26 without filing any formal claim with the Department, shall be
27 allowed to take credit against such use tax liability to the
28 extent, if any, to which such retailer has paid an amount
29 equivalent to retailers' occupation tax or has paid use tax
30 in error to his or her vendor or vendors of the same tangible
31 personal property which such retailer bought for resale and
32 did not first use before selling it, and no penalty or
33 interest shall be charged to such retailer on the amount of
34 such credit. However, when such credit is allowed to the
-756- LRB9000671KDdvA
1 retailer by the Department, the vendor is precluded from
2 refunding any of that tax to the retailer and filing a claim
3 for credit or refund with respect thereto with the
4 Department. The provisions of this amendatory Act shall be
5 applied retroactively, regardless of the date of the
6 transaction.
7 Section 55-15. Credit or refund; payment and interest.
8 Any credit or refund that is allowed under this Section 55-5
9 or 55-10 shall bear interest at the rate and in the manner
10 specified in the Uniform Penalty and Interest Act.
11 In case the Department determines that the claimant is
12 entitled to a refund, such refund shall be made only from
13 such appropriation as may be available for that purpose. If
14 it appears unlikely that the amount appropriated would permit
15 everyone having a claim allowed during the period covered by
16 such appropriation to elect to receive a cash refund, the
17 Department, by rule or regulation, shall provide for the
18 payment of refunds in hardship cases and shall define what
19 types of cases qualify as hardship cases.
20 Section 55-20. Claims for credit or refund.
21 (a) For purposes of the retailers' occupation tax,
22 claims for credit or refund shall be prepared and filed upon
23 forms provided by the Department. Each claim shall state: (1)
24 the name and principal business address of the claimant; (2)
25 the period covered by the claim; (3) the total amount of
26 credit or refund claimed, giving in detail the net amount of
27 taxable receipts reported each month or other return period
28 used by the claimant as the basis for filing returns in the
29 period covered by the claim; (4) the total amount of tax paid
30 for each return period; (5) receipts upon which tax liability
31 is admitted for each return period; (6) the amount of
32 receipts on which credit or refund is claimed for each return
-757- LRB9000671KDdvA
1 period; (7) the tax due for each return period as corrected;
2 (8) the amount of credit or refund claimed for each return
3 period; (9) reason or reasons why the amount, for which the
4 claim is filed, is alleged to have been paid in error; (10) a
5 list of the evidence (documentary or otherwise) which the
6 claimant has available to establish his compliance with
7 Section 55-5 as to bearing the burden of the tax for which he
8 seeks credit or refund; (11) payments or parts thereof (if
9 any) included in the claim and paid by the claimant under
10 protest; (12) sufficient information to identify any suit
11 which involves this Code, and to which the claimant is a
12 party; and (13) such other information as the Department may
13 reasonably require. Where the claimant is a corporation or
14 limited liability company, the claim filed on behalf of such
15 corporation or limited liability company shall be signed by
16 the president, vice-president, secretary or treasurer, by the
17 properly accredited agent of such corporation, or by a
18 manager, member, or properly accredited agent of the limited
19 liability company.
20 (b) For purposes of the use tax, the service occupation
21 tax, and the service use tax, any claim filed under Section
22 55-10 hereunder shall be filed upon a form prescribed and
23 furnished by the Department. The claim shall be signed by the
24 claimant (or by the claimant's legal representative if the
25 claimant shall have died or become a person under legal
26 disability), or by a duly authorized agent of the claimant or
27 his or her legal representative.
28 (c) A claim for credit or refund shall be considered to
29 have been filed with the Department on the date upon which it
30 is received by the Department. Upon receipt of any claim for
31 credit or refund filed under this Code Act, any officer or
32 employee of the Department, authorized in writing by the
33 Director of Revenue to acknowledge receipt of such claims on
34 behalf of the Department, shall execute on behalf of the
-758- LRB9000671KDdvA
1 Department, and shall deliver or mail to the claimant or his
2 or her duly authorized agent, a written receipt,
3 acknowledging that the claim has been filed with the
4 Department, describing the claim in sufficient detail to
5 identify it and stating the date upon which the claim was
6 received by the Department. Such written receipt shall be
7 prima facie evidence that the Department received the claim
8 described in such receipt and shall be prima facie evidence
9 of the date when such claim was received by the Department.
10 In the absence of such a written receipt, the records of the
11 Department as to when the claim was received by the
12 Department, or as to whether or not the claim was received at
13 all by the Department, shall be deemed to be prima facie
14 correct upon these questions in the event of any dispute
15 between the claimant (or his legal representative) and the
16 Department concerning these questions.
17 In case the Department determines that the claimant is
18 entitled to a refund, such refund shall be made only from
19 such appropriation as may be available for that purpose. If
20 it appears unlikely that the amount appropriated would permit
21 everyone having a claim allowed during the period covered by
22 such appropriation to elect to receive a cash refund, the
23 Department, by rule or regulation, shall provide for the
24 payment of refunds in hardship cases and shall define what
25 types of cases qualify as hardship cases.
26 (Source: P.A. 87-205.)
27 (35 ILCS 115/18) (from Ch. 120, par. 439.118)
28 Section 55-25. Determination of claim; hearing.
29 (a) Sec. 18. As soon as practicable after a claim for
30 credit or refund is filed, the Department shall examine the
31 same and determine the amount of credit or refund to which
32 the claimant or the claimant's legal representative, in the
33 event that the claimant shall have died or become a person
-759- LRB9000671KDdvA
1 under legal disability, is entitled and shall, by its Notice
2 of Tentative Determination of Claim, notify the claimant or
3 his or her legal representative of such determination, which
4 determination shall be prima facie correct. Proof of such
5 determination by the Department may be made at any hearing
6 before the Department or in any legal proceeding by a
7 reproduced copy of the Department's record relating thereto,
8 in the name of the Department under the certificate of the
9 Director of Revenue. Such reproduced copy shall, without
10 further proof, be admitted into evidence before the
11 Department or in any legal proceeding and shall be prima
12 facie proof of the correctness of the Department's
13 determination, as shown therein. If such claimant, or the
14 legal representative of a deceased claimant or a claimant who
15 is a person under legal disability shall, for purposes of the
16 use tax, the service occupation tax, and the service use tax,
17 within 20 days after the Department's Notice of Tentative
18 Determination of Claim, or for purposes of the retailers'
19 occupation tax, within 60 days after the Department's Notice
20 of Tentative Determination of Claim, file a protest thereto
21 and request a hearing thereon, the Department shall give
22 notice to such claimant, or the legal representative of a
23 deceased claimant, or a claimant who is a person under legal
24 disability, of the time and place fixed for such hearing, and
25 shall hold a hearing in conformity with the provisions of
26 this Code Act, and pursuant thereto shall issue its Final
27 Determination of the amount, if any, found to be due as a
28 result of such hearing, to such claimant, or the legal
29 representative of a deceased claimant or a claimant who is a
30 person under legal disability.
31 (b) For purposes of the retailers' occupation tax only,
32 the Department's Final Determination may be reviewed by the
33 proper Circuit Court, in the same manner, within the same
34 time, upon the same terms and conditions and to the same
-760- LRB9000671KDdvA
1 extent, as provided by Section 77-5 of this Code.
2 Section 55-30. Final determination of claim. If a
3 protest to the Department's Notice of Tentative Determination
4 of Claim is not filed within 20 days and a request for a
5 hearing thereon is not made as provided in Section 55-25
6 herein, the Notice shall thereupon become and operate as a
7 Final Determination; and, if the Department's Notice of
8 Tentative Determination, upon becoming a Final Determination,
9 indicates no amount due to the claimant, or, upon issuance of
10 a credit memorandum or refund for the amount, if any, found
11 by the Department to be due, the claim in all its aspects
12 shall be closed and no longer open to protest, hearing,
13 judicial review, or by any other proceeding or action
14 whatever, either before the Department or in any court of
15 this State. Claims for credit or refund hereunder must be
16 filed with and initially determined by the Department, the
17 remedy herein provided being exclusive; and no court shall
18 have jurisdiction to determine the merits of any claim except
19 upon review as provided in this Code Act.
20 (Source: P.A. 83-706.)
21 (35 ILCS 115/19) (from Ch. 120, par. 439.119)
22 Section 55-35. Limitations. Sec. 19. As to any claim
23 for credit or refund filed with the Department on and after
24 January 1 but on or before June 30 of any given year, no
25 amount of tax or penalty or interest erroneously paid (either
26 in total or partial liquidation of a tax or penalty or
27 interest under this Code Act) more than 3 years prior to such
28 January 1 shall be credited or refunded, and as to any such
29 claim filed on and after July 1 but on or before December 31
30 of any given year, no amount of tax or penalty or interest
31 erroneously paid (either in total or partial liquidation of a
32 tax or penalty or interest under this Code Act) more than 3
-761- LRB9000671KDdvA
1 years prior to such July 1 shall be credited or refunded
2 except that, for purposes of the retailers' occupation tax,
3 if both the Department and the taxpayer have agreed to an
4 extension of time to issue a notice of tax liability as
5 provided in Section 50-145 of this Code, such claim may be
6 filed at any time prior to the expiration of the period
7 agreed upon.
8 No claim shall be allowed for any amount paid to the
9 Department, whether paid voluntarily or involuntarily, if
10 paid in total or partial liquidation of an assessment which
11 had become final before the claim for credit or refund to
12 recover the amount so paid is filed with the Department, or
13 if paid in total or partial liquidation of a judgment or
14 order of court.
15 (Source: P.A. 79-1365; 79-1366.)
16 (35 ILCS 115/20) (from Ch. 120, par. 439.120)
17 Section 55-40. Application of credit or refund against
18 tax. For purposes of the use tax, the service occupation
19 tax, and the service use tax, Sec. 20. if it is determined
20 that the Department should issue a credit or refund under
21 this Code hereunder, the Department may first apply the
22 amount thereof against any amount of tax or penalty or
23 interest due under this Code hereunder, or under the Service
24 Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax
25 Act, the Municipal Retailers' Occupation Tax Act, the
26 Municipal Use Tax Act, the Municipal Service Occupation Tax
27 Act, the County Retailers' Occupation Tax Act, the County
28 Supplementary Retailers' Occupation Tax Act, the County
29 Service Occupation Tax Act, the County Supplementary Service
30 Occupation Tax Act, the County Use Tax Act, the County
31 Supplementary Use Tax Act, Section 4 of the Water Commission
32 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
33 the Local Mass Transit District Act, or subsections (e), (f)
-762- LRB9000671KDdvA
1 and (g) of Section 4.03 of the Regional Transportation
2 Authority Act, from the person entitled to such credit or
3 refund. For this purpose, if proceedings are pending to
4 determine whether or not any tax or penalty or interest is
5 due under this Code hereunder, or under the Service Use Tax
6 Act, the Retailers' Occupation Tax Act, the Use Tax Act, the
7 Municipal Retailers' Occupation Tax Act, the Municipal Use
8 Tax Act, the Municipal Service Occupation Tax Act, the County
9 Retailers' Occupation Tax Act, the County Supplementary
10 Retailers' Occupation Tax Act, the County Service Occupation
11 Tax Act, the County Supplementary Service Occupation Tax Act,
12 the County Use Tax Act, the County Supplementary Use Tax Act,
13 Section 4 of the Water Commission Act of 1985, subsections
14 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
15 District Act, or subsections (e), (f) and (g) of Section 4.03
16 of the Regional Transportation Authority Act, from such
17 person, the Department may withhold issuance of the credit or
18 refund pending the final disposition of such proceedings and
19 may apply such credit or refund against any amount found to
20 be due to the Department as a result of such proceedings. The
21 balance, if any, of the credit or refund shall be issued to
22 the person entitled thereto.
23 Any credit memorandum issued hereunder may be used by the
24 authorized holder thereof to pay any tax or penalty or
25 interest due or to become due under this Code Act, or under
26 the Service Use Tax Act, the Retailers' Occupation Tax Act,
27 the Use Tax Act, the Municipal Retailers' Occupation Tax Act,
28 the Municipal Use Tax Act, the Municipal Service Occupation
29 Tax Act, the County Retailers' Occupation Tax Act, the County
30 Supplementary Retailers' Occupation Tax Act, the County
31 Service Occupation Tax Act, the County Supplementary Service
32 Occupation Tax Act, the County Use Tax Act, the County
33 Supplementary Use Tax Act, Section 4 of the Water Commission
34 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
-763- LRB9000671KDdvA
1 the Local Mass Transit District Act, or subsections (e), (f)
2 and (g) of Section 4.03 of the Regional Transportation
3 Authority Act, from such holder. Subject to reasonable rules
4 of the Department, a credit memorandum issued hereunder may
5 be assigned by the holder thereof to any other person for use
6 in paying tax or penalty or interest which may be due or
7 become due under this Code or, for purposes of the service
8 occupation tax and the service use tax, due under Act, the
9 Service Use Tax Act, the Retailers' Occupation Tax Act, the
10 Use Tax Act, the Municipal Retailers' Occupation Tax Act, the
11 Municipal Use Tax Act, the Municipal Service Occupation Tax
12 Act, the County Retailers' Occupation Tax Act, the County
13 Supplementary Retailers' Occupation Tax Act, the County
14 Service Occupation Tax Act, the County Supplementary Service
15 Occupation Tax Act, the County Use Tax Act, the County
16 Supplementary Use Tax Act, Section 4 of the Water Commission
17 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
18 the Local Mass Transit District Act, or subsections (e), (f)
19 and (g) of Section 4.03 of the Regional Transportation
20 Authority Act, from the assignee.
21 (b) For purposes of this Code, in any case in which
22 there has been an erroneous refund of tax payable under this
23 Code Act, a notice of tax liability may be issued at any time
24 within 3 years from the making of that refund, or within 5
25 years from the making of that refund if it appears that any
26 part of the refund was induced by fraud or the
27 misrepresentation of a material fact. The amount of any
28 proposed assessment set forth in the notice shall be limited
29 to the amount of the erroneous refund.
30 (Source: P.A. 87-876.)
31 (35 ILCS 115/20a) (from Ch. 120, par. 439.120a)
32 Section 75-5. Application of the Administrative
33 Procedure Act. Sec. 20a. The Illinois Administrative
-764- LRB9000671KDdvA
1 Procedure Act is hereby expressly adopted and shall apply to
2 all administrative rules and procedures of the Department of
3 Revenue under this Code Act, except that (1) paragraph (b) of
4 Section 5-10 of the Illinois Administrative Procedure Act
5 does not apply to final orders, decisions and opinions of the
6 Department, (2) subparagraph (a)(2) of Section 5-10 of the
7 Illinois Administrative Procedure Act does not apply to forms
8 established by the Department for use under this Code Act,
9 and (3) the provisions of Section 10-45 of the Illinois
10 Administrative Procedure Act regarding proposals for decision
11 are excluded and not applicable to the Department under this
12 Code Act.
13 (Source: P.A. 88-45.)
14 (35 ILCS 115/21) (from Ch. 120, par. 439.121)
15 Section 90-35. Severability. Sec. 21. If any clause,
16 sentence, Section, provision or part of this Code Act or the
17 application thereof to any person or circumstance shall be
18 adjudged to be unconstitutional, the remainder of this Code
19 Act or its application to persons or circumstances other than
20 those to which it is held invalid, shall not be affected
21 thereby. In particular, if any provision which exempts or has
22 the effect of exempting some class of users or servicemen or
23 some kind of use or service from the taxes tax imposed by
24 this Code Act should be held to constitute or to result in an
25 invalid classification or to be unconstitutional for some
26 other reason, such provision shall be deemed to be severable,
27 with the remainder of this Code Act without said provision
28 being held constitutional.
29 (Source: Laws 1961, p. 1745.)
30 Section 1-5. Applicability. Unless otherwise specified
31 in this Code, the provisions of each Section or subsection of
32 this Code apply to all of the taxes imposed under Articles
-765- LRB9000671KDdvA
1 10, 15, 20, and 25. For example, if a Section or subsection
2 begins with the phrase "for purposes of the retailers'
3 occupation tax and use tax", the provisions of that Section
4 or subsection apply only to the retailers' occupation tax
5 imposed in Article 10 and the use tax imposed in Article 15.
6 Those provisions would not apply to the service occupation
7 tax imposed in Article 20 or the service use tax imposed in
8 Article 25. If no language in a Section or subsection of
9 this Code specifically limits its application, then the
10 provisions of that Section or subsection apply to the
11 retailers' occupation tax imposed in Article 10, the use tax
12 imposed in Article 15, the service occupation tax imposed in
13 Article 20, and the service use tax imposed in Article 25.
14 (b) This Code, as enacted, is not intended to make any
15 substantive changes in the meaning, effect, or application of
16 the continued and codified provisions of the Retailers'
17 Occupation Tax Act, the Use Tax Act, the Service Occupation
18 Tax Act, or the Service Use Tax Act.
19 Section 5-5. Acquired outside this State. For purposes
20 of the use tax, "acquired outside this State", in addition to
21 its usual and popular meaning, also means the delivery,
22 outside Illinois, of tangible personal property that is
23 purchased in this State and delivered from a point in this
24 State to a point of delivery outside this State.
25 Section 5-10. Bulk vending machine. For purposes of the
26 retailers' occupation tax and the use tax, "bulk vending
27 machine" means a nonelectrically operated vending machine,
28 containing unsorted confections, nuts or other merchandise
29 which, when a coin of a denomination not larger than one cent
30 is inserted, are dispensed in equal portions, at random and
31 without selection by the customer.
-766- LRB9000671KDdvA
1 Section 5-40. Gasohol. "Gasohol" means motor fuel that
2 is no more than 90% gasoline and at least 10% denatured
3 ethanol that contains no more than 1.25% water by weight.
4 Section 5-50. Gross receipts. For purposes of the
5 retailers' occupation tax, "gross receipts" from the sales of
6 tangible personal property at retail means the total selling
7 price or the amount of such sales as defined in this Code. In
8 the case of charge and time sales, the amount thereof shall
9 be included only as and when payments are received by the
10 seller. Receipts or other consideration derived by a seller
11 from the sale, transfer or assignment of accounts receivable
12 to a wholly owned subsidiary will not be deemed payments
13 prior to the time the purchaser makes payment on such
14 accounts.
15 Section 5-55. Like kind and character. For purposes of
16 the retailers' occupation tax and the use tax, the phrase
17 "like kind and character" shall be liberally construed
18 (including but not limited to any form of motor vehicle for
19 any form of motor vehicle, or any kind of farm or
20 agricultural implement for any other kind of farm or
21 agricultural implement), while not including a kind of item
22 which, if sold at retail by that retailer, would be exempt
23 from retailers' occupation tax and use tax as an isolated or
24 occasional sale.
25 Section 5-85. Purchase at retail. For purposes of the
26 use tax, "purchase at retail" means the acquisition of the
27 ownership of or title to tangible personal property through a
28 sale at retail.
29 Section 5-90. Purchased from a serviceman. For purposes
30 of the service use tax, "purchased from a serviceman" means
-767- LRB9000671KDdvA
1 the acquisition of the ownership of, or title to, tangible
2 personal property through a sale of service.
3 Section 5-95. Purchaser.
4 (a) For purposes of the retailers' occupation tax and
5 the use tax, "purchaser" means anyone who, through a sale at
6 retail, acquires the ownership of or title to tangible
7 personal property for a valuable consideration.
8 (b) For purposes of the service use tax, "purchaser"
9 means anyone who, through a sale of service, acquires the
10 ownership of, or title to, any tangible personal property.
11 Section 5-100. Reseller of motor fuel. For purposes of
12 the retailers' occupation tax, "reseller of motor fuel" means
13 any person engaged in the business of selling or delivering
14 or transferring title of motor fuel to another person other
15 than for use or consumption. No person shall act as a
16 reseller of motor fuel within this State without first being
17 registered as a reseller pursuant to Section 35-50 or a
18 retailer pursuant to Section 35-5.
19 Section 5-105. Retailer.
20 (a) For purposes of the use tax, "retailer" means and
21 includes every person engaged in the business of making sales
22 at retail as defined in Section 5-115.
23 A person who holds himself or herself out as being
24 engaged (or who habitually engages) in selling tangible
25 personal property at retail is a retailer hereunder with
26 respect to such sales (and not primarily in a service
27 occupation) notwithstanding the fact that such person designs
28 and produces such tangible personal property on special order
29 for the purchaser and in such a way as to render the property
30 of value only to such purchaser, if such tangible personal
31 property so produced on special order serves substantially
-768- LRB9000671KDdvA
1 the same function as stock or standard items of tangible
2 personal property that are sold at retail.
3 A person whose activities are organized and conducted
4 primarily as a not-for-profit service enterprise, and who
5 engages in selling tangible personal property at retail
6 (whether to the public or merely to members and their guests)
7 is a retailer with respect to such transactions, excepting
8 only a person organized and operated exclusively for
9 charitable, religious or educational purposes either (1), to
10 the extent of sales by such person to its members, students,
11 patients or inmates of tangible personal property to be used
12 primarily for the purposes of such person, or (2), to the
13 extent of sales by such person of tangible personal property
14 which is not sold or offered for sale by persons organized
15 for profit. The selling of school books and school supplies
16 by schools at retail to students is not "primarily for the
17 purposes of" the school which does such selling. This
18 paragraph does not apply to nor subject to taxation
19 occasional dinners, social or similar activities of a person
20 organized and operated exclusively for charitable, religious
21 or educational purposes, whether or not such activities are
22 open to the public.
23 A person who is the recipient of a grant or contract
24 under Title VII of the Older Americans Act of 1965 (P.L.
25 92-258) and serves meals to participants in the federal
26 Nutrition Program for the Elderly in return for contributions
27 established in amount by the individual participant pursuant
28 to a schedule of suggested fees as provided for in the
29 federal Act is not a retailer under Article 15 with respect
30 to such transactions.
31 Persons who engage in the business of transferring
32 tangible personal property upon the redemption of trading
33 stamps are retailers hereunder when engaged in such business.
34 The isolated or occasional sale of tangible personal
-769- LRB9000671KDdvA
1 property at retail by a person who does not hold himself out
2 as being engaged (or who does not habitually engage) in
3 selling such tangible personal property at retail or a sale
4 through a bulk vending machine does not make such person a
5 retailer hereunder. However, any person who is engaged in a
6 business which is not subject to the tax imposed by Article
7 10 because of involving the sale of or a contract to sell
8 real estate or a construction contract to improve real
9 estate, but who, in the course of conducting such business,
10 transfers tangible personal property to users or consumers in
11 the finished form in which it was purchased, and which does
12 not become real estate, under any provision of a construction
13 contract or real estate sale or real estate sales agreement
14 entered into with some other person arising out of or because
15 of such nontaxable business, is a retailer to the extent of
16 the value of the tangible personal property so transferred.
17 If, in such transaction, a separate charge is made for the
18 tangible personal property so transferred, the value of such
19 property, for the purposes of Article 15, is the amount so
20 separately charged, but not less than the cost of such
21 property to the transferor; if no separate charge is made,
22 the value of such property, for the purposes of Article 15,
23 is the cost to the transferor of such tangible personal
24 property.
25 (b) For purposes of the retailers' occupation tax and
26 the use tax, a person who is engaged in the business of
27 leasing or renting motor vehicles to others and who, in
28 connection with such business sells any used motor vehicle to
29 a purchaser for his use and not for the purpose of resale, is
30 a retailer engaged in the business of selling tangible
31 personal property at retail under Articles 10 and 15 to the
32 extent of the value of the vehicle sold. For the purpose of
33 this Section, "motor vehicle" has the meaning prescribed in
34 Section 1-157 of the Illinois Vehicle Code. (Nothing
-770- LRB9000671KDdvA
1 provided herein shall affect liability incurred under
2 Articles 10 and 15 because of the sale at retail of such
3 motor vehicles to a lessor or use of such motor vehicles by a
4 lessor.)
5 Section 5-110. Retailer maintaining a place of business
6 in this State. For purposes of the use tax, "retailer
7 maintaining a place of business in this State", or any like
8 term, means and includes any of the following retailers:
9 (1) A retailer having or maintaining within this
10 State, directly or by a subsidiary, an office,
11 distribution house, sales house, warehouse or other place
12 of business, or any agent or other representative
13 operating within this State under the authority of the
14 retailer or its subsidiary, irrespective of whether such
15 place of business or agent or other representative is
16 located here permanently or temporarily, or whether such
17 retailer or subsidiary is licensed to do business in this
18 State. However, the ownership of property that is located
19 at the premises of a printer with which the retailer has
20 contracted for printing and that consists of the final
21 printed product, property that becomes a part of the
22 final printed product, or copy from which the printed
23 product is produced shall not result in the retailer
24 being deemed to have or maintain an office, distribution
25 house, sales house, warehouse, or other place of business
26 within this State.
27 (2) A retailer soliciting orders for tangible
28 personal property by means of a telecommunication or
29 television shopping system (which utilizes toll free
30 numbers) which is intended by the retailer to be
31 broadcast by cable television or other means of
32 broadcasting, to consumers located in this State.
33 (3) A retailer, pursuant to a contract with a
-771- LRB9000671KDdvA
1 broadcaster or publisher located in this State,
2 soliciting orders for tangible personal property by means
3 of advertising which is disseminated primarily to
4 consumers located in this State and only secondarily to
5 bordering jurisdictions.
6 (4) A retailer soliciting orders for tangible
7 personal property by mail if the solicitations are
8 substantial and recurring and if the retailer benefits
9 from any banking, financing, debt collection,
10 telecommunication, or marketing activities occurring in
11 this State or benefits from the location in this State of
12 authorized installation, servicing, or repair facilities.
13 (5) A retailer that is owned or controlled by the
14 same interests that own or control any retailer engaging
15 in business in the same or similar line of business in
16 this State.
17 (6) A retailer having a franchisee or licensee
18 operating under its trade name if the franchisee or
19 licensee is required to collect the tax under this
20 Section.
21 (7) A retailer, pursuant to a contract with a cable
22 television operator located in this State, soliciting
23 orders for tangible personal property by means of
24 advertising which is transmitted or distributed over a
25 cable television system in this State.
26 (8) A retailer engaging in activities in Illinois,
27 which activities in the state in which the retail
28 business engaging in such activities is located would
29 constitute maintaining a place of business in that state.
30 Section 5-120. Selling price.
31 (a) For purposes of the retailers' occupation tax and
32 the use tax, "selling price" means the consideration for a
33 sale valued in money whether received in money or otherwise,
-772- LRB9000671KDdvA
1 including cash, credits, property other than as hereinafter
2 provided, and services, but not including the value of or
3 credit given for traded-in tangible personal property where
4 the item that is traded-in is of like kind and character as
5 that which is being sold, and shall be determined without any
6 deduction on account of the cost of the property sold, the
7 cost of materials used, labor or service cost or any other
8 expense whatsoever, but does not include, for purposes of the
9 use tax only, interest or finance charges which appear as
10 separate items on the bill of sale or sales contract nor, for
11 purposes of the retailers' occupation tax and the use tax,
12 charges that are added to prices by sellers on account of the
13 seller's tax liability under Article 10, or on account of the
14 seller's duty to collect, from the purchaser, the tax that is
15 imposed by Article 15, or on account of the seller's tax
16 liability under Section 8-11-1 of the Illinois Municipal
17 Code, or on account of the seller's tax liability under the
18 County Retailers' Occupation Tax Act, or on account of the
19 seller's tax liability under any tax imposed under the
20 Regional Transportation Authority Act. Effective December 1,
21 1985, "selling price" shall include charges that are added to
22 prices by sellers on account of the seller's tax liability
23 under the Cigarette Tax Act, on account of the seller's duty
24 to collect, from the purchaser, the tax imposed under the
25 Cigarette Use Tax Act, and on account of the seller's duty to
26 collect, from the purchaser, any cigarette tax imposed by a
27 home rule unit.
28 (b) For purposes of the retailers' occupation tax,
29 "selling price" does not include charges that are added to
30 prices by sellers on account of the seller's tax liability
31 under the Home Rule Municipal Soft Drink Retailers'
32 Occupation Tax. "Amount of sale" shall have the same meaning
33 as "selling price".
34 (c) For purposes of the service occupation tax and the
-773- LRB9000671KDdvA
1 service use tax, "selling price" means the consideration for
2 a sale valued in money whether received in money or
3 otherwise, including cash, credits and service, and shall be
4 determined without any deduction on account of the
5 serviceman's cost of the property sold, the cost of materials
6 used, labor or service cost or any other expense whatsoever,
7 but does not include interest or finance charges which appear
8 as separate items on the bill of sale or sales contract nor
9 charges that are added to prices by sellers on account of the
10 seller's duty to collect, from the purchaser, the tax that is
11 imposed by Article 25.
12 Section 5-130. Serviceman maintaining a place of
13 business in this State. For purposes of the service use tax,
14 "serviceman maintaining a place of business in this State",
15 or any like term, means and includes any serviceman:
16 (1) having or maintaining within this State,
17 directly or by a subsidiary, an office, distribution
18 house, sales house, warehouse or other place of business,
19 or any agent or other representative operating within
20 this State under the authority of the serviceman or its
21 subsidiary, irrespective of whether such place of
22 business or agent or other representative is located here
23 permanently or temporarily, or whether such serviceman or
24 subsidiary is licensed to do business in this State;
25 (2) soliciting orders for tangible personal
26 property by means of a telecommunication or television
27 shopping system (which utilizes toll free numbers) which
28 is intended by the retailer to be broadcast by cable
29 television or other means of broadcasting, to consumers
30 located in this State;
31 (3) pursuant to a contract with a broadcaster or
32 publisher located in this State, soliciting orders for
33 tangible personal property by means of advertising which
-774- LRB9000671KDdvA
1 is disseminated primarily to consumers located in this
2 State and only secondarily to bordering jurisdictions;
3 (4) soliciting orders for tangible personal
4 property by mail if the solicitations are substantial and
5 recurring and if the retailer benefits from any banking,
6 financing, debt collection, telecommunication, or
7 marketing activities occurring in this State or benefits
8 from the location in this State of authorized
9 installation, servicing, or repair facilities;
10 (5) being owned or controlled by the same interests
11 which own or control any retailer engaging in business in
12 the same or similar line of business in this State;
13 (6) having a franchisee or licensee operating under
14 its trade name if the franchisee or licensee is required
15 to collect the tax under this Section;
16 (7) pursuant to a contract with a cable television
17 operator located in this State, soliciting orders for
18 tangible personal property by means of advertising which
19 is transmitted or distributed over a cable television
20 system in this State; or
21 (8) engaging in activities in Illinois, which
22 activities in the state in which the supply business
23 engaging in such activities is located would constitute
24 maintaining a place of business in that state.
25 Section 5-145. Use.
26 (a) For purposes of the use tax, "use" means the
27 exercise by any person of any right or power over tangible
28 personal property incident to the ownership of that property,
29 except that it does not include the sale of such property in
30 any form as tangible personal property in the regular course
31 of business to the extent that such property is not first
32 subjected to a use for which it was purchased, and does not
33 include the use of such property by its owner for
-775- LRB9000671KDdvA
1 demonstration purposes: provided that the property purchased
2 is deemed to be purchased for the purpose of resale, despite
3 first being used, to the extent to which it is resold as an
4 ingredient of an intentionally produced product or by-product
5 of manufacturing. "Use" does not mean the demonstration use
6 or interim use of tangible personal property by a retailer
7 before he sells that tangible personal property. For
8 watercraft or aircraft, if the period of demonstration use or
9 interim use by the retailer exceeds 18 months, the retailer
10 shall pay on the retailers' original cost price the tax
11 imposed by Article 15, and no credit for that tax is
12 permitted if the watercraft or aircraft is subsequently sold
13 by the retailer. "Use" does not mean the physical
14 incorporation of tangible personal property, to the extent
15 not first subjected to a use for which it was purchased, as
16 an ingredient or constituent, into other tangible personal
17 property (1) which is sold in the regular course of business
18 or (2) which the person incorporating such ingredient or
19 constituent therein has undertaken at the time of such
20 purchase to cause to be transported in interstate commerce to
21 destinations outside the State of Illinois: provided that the
22 property purchased is deemed to be purchased for the purpose
23 of resale, despite first being used, to the extent to which
24 it is resold as an ingredient of an intentionally produced
25 product or by-product of manufacturing.
26 (b) For purposes of the service use tax, "use" means the
27 exercise by any person of any right or power over tangible
28 personal property incident to the ownership of that property,
29 but does not include the sale or use for demonstration by him
30 of that property in any form as tangible personal property in
31 the regular course of business. "Use" does not mean the
32 interim use of tangible personal property nor the physical
33 incorporation of tangible personal property, as an ingredient
34 or constituent, into other tangible personal property, (1)
-776- LRB9000671KDdvA
1 which is sold in the regular course of business or (2) which
2 the person incorporating such ingredient or constituent
3 therein has undertaken at the time of such purchase to cause
4 to be transported in interstate commerce to destinations
5 outside the State of Illinois.
6 Section 5-150. Watercraft. For purposes of the
7 retailers' occupation tax and the use tax, "watercraft" means
8 a Class 2, Class 3, or Class 4 watercraft as defined in
9 Section 3-2 of the Boat Registration and Safety Act, a
10 personal watercraft, or any boat equipped with an inboard
11 motor.
12 Section 10-5. Tax imposed. A tax is imposed upon persons
13 engaged in the business of selling at retail tangible
14 personal property, including computer software, and including
15 photographs, negatives, and positives that are the product of
16 photoprocessing, but not including products of
17 photoprocessing produced for use in motion pictures for
18 public commercial exhibition. The tax imposed in this Article
19 shall be known as the "retailers' occupation tax".
20 Section 10-10. Tax additional. The tax imposed in this
21 Article shall be in addition to all other occupation or
22 privilege taxes imposed by the State of Illinois or by any
23 municipal corporation or political subdivision thereof.
24 Section 10-15. Rate of tax. Unless otherwise provided
25 in this Section, the tax imposed by this Article is at the
26 rate of 6.25% of gross receipts from sales of tangible
27 personal property made in the course of business.
28 With respect to gasohol, as defined in Section 5-40, the
29 tax imposed by this Article applies to 70% of the proceeds of
30 sales made on or after January 1, 1990, and before July 1,
-777- LRB9000671KDdvA
1 1999, and to 100% of the proceeds of sales made thereafter,
2 except that from July 1, 1997 to July 1, 1999, the rate shall
3 be 85% for gasohol sold in this State during the 12 months
4 beginning July 1 following any calendar year for which the
5 Department has determined that the percentages in Section 10
6 of the Gasohol Fuels Tax Abatement Act have not been met.
7 With respect to food for human consumption that is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks, and food that has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances,
12 modifications to a motor vehicle for the purpose of rendering
13 it usable by a disabled person, and insulin, urine testing
14 materials, syringes, and needles used by diabetics, for human
15 use, the tax is imposed at the rate of 1%. For the purposes
16 of this Section, the term "soft drinks" means any complete,
17 finished, ready-to-use, non-alcoholic drink, whether
18 carbonated or not, including but not limited to soda water,
19 cola, fruit juice, vegetable juice, carbonated water, and all
20 other preparations commonly known as soft drinks of whatever
21 kind or description that are contained in any closed or
22 sealed bottle, can, carton, or container, regardless of size.
23 "Soft drinks" does not include coffee, tea, non-carbonated
24 water, infant formula, milk or milk products as defined in
25 the Grade A Pasteurized Milk and Milk Products Act, or drinks
26 containing 50% or more natural fruit or vegetable juice.
27 Notwithstanding any other provisions of this Code, "food
28 for human consumption that is to be consumed off the premises
29 where it is sold" includes all food sold through a vending
30 machine, except soft drinks and food products that are
31 dispensed hot from a vending machine, regardless of the
32 location of the vending machine.
33 Section 10-20. Purchaser refunds. If a seller collects
-778- LRB9000671KDdvA
1 an amount (however designated) that purports to reimburse the
2 seller for retailers' occupation tax liability measured by
3 receipts that are not subject to retailers' occupation tax,
4 or if a seller, in collecting an amount (however designated)
5 that purports to reimburse the seller for retailers'
6 occupation tax liability measured by receipts that are
7 subject to tax under this Article, collects more from the
8 purchaser than the seller's retailers' occupation tax
9 liability on the transaction, the purchaser shall have a
10 legal right to claim a refund of that amount from the seller.
11 If, however, that amount is not refunded to the purchaser for
12 any reason, the seller is liable to pay that amount to the
13 Department. This paragraph does not apply to an amount
14 collected by the seller as reimbursement for the seller's
15 retailers' occupation tax liability on receipts that are
16 subject to tax under this Article as long as the collection
17 is made in compliance with the tax collection brackets
18 prescribed by the Department in its rules and regulations.
19 Section 10-25. Serviceman transfer. Tangible personal
20 property purchased by a serviceman, as defined in Section
21 5-125, is subject to the tax imposed by this Article when
22 purchased for transfer by the serviceman incidental to
23 completion of a maintenance agreement.
24 Section 10-30. Prepayment of tax by motor fuel retailer.
25 Any person engaged in the business of selling motor fuel at
26 retail, as defined in the Motor Fuel Tax Law, and who is not
27 a licensed distributor or supplier, as defined in the Motor
28 Fuel Tax Law, shall prepay to his or her distributor,
29 supplier, or other reseller of motor fuel a portion of the
30 tax imposed by this Article if the distributor, supplier, or
31 other reseller of motor fuel is registered under Sections
32 35-5 through 35-50 of this Code. The prepayment requirement
-779- LRB9000671KDdvA
1 provided for in this Section does not apply to liquid propane
2 gas.
3 The retailers' occupation tax paid to the distributor,
4 supplier, or other reseller shall be an amount equal to $0.04
5 per gallon of the motor fuel, except gasohol as defined in
6 Section 5-40 of this Code which shall be an amount equal to
7 $0.03 per gallon, purchased from the distributor, supplier,
8 or other reseller.
9 Any person engaged in the business of selling motor fuel
10 at retail shall be entitled to a credit against tax due under
11 this Article in an amount equal to the tax paid to the
12 distributor, supplier, or other reseller.
13 Every distributor, supplier, or other reseller registered
14 as provided in Sections 35-5 through 35-50 of this Code shall
15 remit the prepaid tax on all motor fuel that is due from any
16 person engaged in the business of selling at retail motor
17 fuel with the returns filed under Section 10-40 or Sections
18 50-5 through 50-140 of this Code, but the vendors discount
19 provided in Sections 50-5 through 50-140 shall not apply to
20 the amount of prepaid tax that is remitted. Any distributor
21 or supplier who fails to properly collect and remit the tax
22 shall be liable for the tax. For purposes of this Section,
23 the prepaid tax is due on invoiced gallons sold during a
24 month by the 20th day of the following month.
25 Section 10-35. Motor fuel distributor or supplier;
26 statement of purchases. Every such distributor or supplier
27 shall deliver a statement of tax paid to each purchaser and
28 the Department of Revenue not later than the 20th day of the
29 month following the month during which a transaction
30 occurred, showing: the number of gallons of motor fuel sold
31 or distributed during the preceding month to that purchaser;
32 identifying the purchaser to whom it was sold or distributed,
33 including the purchaser's tax registration number; and the
-780- LRB9000671KDdvA
1 amount collected from the purchaser.
2 Section 10-40. Reseller of motor fuel; filing of
3 returns. Resellers of motor fuel shall file a return by the
4 20th of the month following the month during which a
5 transaction occurred showing an itemized statement of the
6 amount of motor fuel sold, distributed and used by the
7 reseller, identifying the purchaser to whom it was sold
8 including the purchaser's tax registration number, the amount
9 of tax collected from the purchaser, or delivery point if the
10 motor fuel was delivered to an unregistered purchaser outside
11 this State, name and address and the total quantity of motor
12 fuel sold or transferred to each purchaser in the preceding
13 calendar month and such other information as the Department
14 may reasonably require.
15 Section 10-45. Procedures for filing return of motor
16 fuel resellers. All provisions of Sections 30-30, 35-75,
17 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
18 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
19 apply to the retailers' occupation tax shall apply, as far as
20 practicable, to returns filed pursuant to Section 10-40.
21 Section 15-5. Tax imposed. A tax is imposed upon the
22 privilege of using in this State tangible personal property
23 purchased at retail from a retailer, including computer
24 software, and including photographs, negatives, and positives
25 that are the product of photoprocessing, but not including
26 products of photoprocessing produced for use in motion
27 pictures for commercial exhibition. The tax imposed in this
28 Article shall be known as the "use tax".
29 Section 15-10. Tax additional. The tax imposed in this
30 Article shall be in addition to all other occupation or
-781- LRB9000671KDdvA
1 privilege taxes imposed by the State of Illinois or by any
2 municipal corporation or political subdivision thereof.
3 Section 15-15. Rate of tax. Unless otherwise provided
4 in this Section, the tax imposed by this Article is at the
5 rate of 6.25% of either the selling price or the fair market
6 value, if any, of the tangible personal property. In all
7 cases where property functionally used or consumed is the
8 same as the property that was purchased at retail, then the
9 tax is imposed on the selling price of the property. In all
10 cases where property functionally used or consumed is a
11 by-product or waste product that has been refined,
12 manufactured, or produced from property purchased at retail,
13 then the tax is imposed on the lower of the fair market
14 value, if any, of the specific property so used in this State
15 or on the selling price of the property purchased at retail.
16 For purposes of this Section "fair market value" means the
17 price at which property would change hands between a willing
18 buyer and a willing seller, neither being under any
19 compulsion to buy or sell and both having reasonable
20 knowledge of the relevant facts. The fair market value shall
21 be established by Illinois sales by the taxpayer of the same
22 property as that functionally used or consumed, or if there
23 are no such sales by the taxpayer, then comparable sales or
24 purchases of property of like kind and character in Illinois.
25 With respect to gasohol, the tax imposed by this Article
26 applies to 70% of the proceeds of sales made on or after
27 January 1, 1990, and before July 1, 1999, and to 100% of the
28 proceeds of sales made thereafter, except that from July 1,
29 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
30 in this State during the 12 months beginning July 1 following
31 any calendar year for which the Department has determined
32 that the percentages in Section 10 of the Gasohol Fuels Tax
33 Abatement Act have not been met.
-782- LRB9000671KDdvA
1 With respect to food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks, and food that has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances,
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person, and insulin, urine testing
8 materials, syringes, and needles used by diabetics, for human
9 use, the tax is imposed at the rate of 1%. For the purposes
10 of this Section, the term "soft drinks" means any complete,
11 finished, ready-to-use, non-alcoholic drink, whether
12 carbonated or not, including but not limited to soda water,
13 cola, fruit juice, vegetable juice, carbonated water, and all
14 other preparations commonly known as soft drinks of whatever
15 kind or description that are contained in any closed or
16 sealed bottle, can, carton, or container, regardless of size.
17 "Soft drinks" does not include coffee, tea, non-carbonated
18 water, infant formula, milk or milk products as defined in
19 the Grade A Pasteurized Milk and Milk Products Act, or drinks
20 containing 50% or more natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Code, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 If the property that is purchased at retail from a
28 retailer is acquired outside Illinois and used outside
29 Illinois before being brought to Illinois for use here and is
30 taxable under this Article, the "selling price" on which the
31 tax is computed shall be reduced by an amount that represents
32 a reasonable allowance for depreciation for the period of
33 prior out-of-state use.
-783- LRB9000671KDdvA
1 Section 15-20. Collection. The tax imposed by this
2 Article shall be collected from the purchaser by a retailer
3 maintaining a place of business in this State or a retailer
4 authorized by the Department under Section 60-10 of this
5 Code, and shall be remitted to the Department as provided in
6 Sections 50-5 through 50-140 of this Code.
7 The tax imposed by this Article that is not paid to a
8 retailer under this Section shall be paid to the Department
9 directly by any person using the property within this State
10 as provided in Section 50-155 of this Code.
11 Retailers shall collect the tax from users by adding the
12 tax to the selling price of tangible personal property, when
13 sold for use, in the manner prescribed by the Department.
14 The Department may adopt and promulgate reasonable rules and
15 regulations for the adding of the tax by retailers to selling
16 prices by prescribing bracket systems for the purpose of
17 enabling the retailers to add and collect, as far as
18 practicable, the amount of the tax.
19 If a seller collects use tax measured by receipts that
20 are not subject to use tax, or if a seller, in collecting use
21 tax measured by receipts that are subject to tax under this
22 Article, collects more from the purchaser than the required
23 amount of the use tax on the transaction, the purchaser shall
24 have a legal right to claim a refund of that amount from the
25 seller. If, however, that amount is not refunded to the
26 purchaser for any reason, the seller is liable to pay that
27 amount to the Department. This paragraph does not apply to
28 an amount collected by the seller as use tax on receipts that
29 are subject to tax under this Article as long as the
30 collection is made in compliance with the tax collection
31 brackets prescribed by the Department in its rules and
32 regulations.
33 Section 15-25. R.O.T. nontaxability. If the seller of
-784- LRB9000671KDdvA
1 tangible personal property for use would not be taxable under
2 Article 10 of this Code despite all elements of the sale
3 occurring in Illinois, then the tax imposed by this Article
4 does not apply to the use of the tangible personal property
5 in this State.
6 Section 15-30. Serviceman transfer. Tangible personal
7 property purchased by a serviceman, as defined in Section
8 5-125, is subject to the tax imposed by this Article when
9 purchased for transfer by the serviceman incidental to
10 completion of a maintenance agreement.
11 Section 15-35. Method of stating tax. The tax imposed
12 by this Article shall when collected be stated as a distinct
13 item separate and apart from the selling price of the
14 tangible personal property. However, where it is not possible
15 to state the sales tax separately in situations such as sales
16 from vending machines or sales of liquor by the drink the
17 Department may by rule exempt such sales from this
18 requirement so long as purchasers are notified by a sign that
19 the tax is included in the selling price.
20 Section 25-5. Tax imposed. A tax is imposed upon the
21 privilege of using in this State real or tangible personal
22 property acquired as an incident to the purchase of a service
23 from a serviceman, including computer software, and including
24 photographs, negatives, and positives that are the product of
25 photoprocessing, but not including products of
26 photoprocessing produced for use in motion pictures for
27 public commercial exhibition. The tax imposed in this Article
28 shall be known as the "service use tax".
29 Section 25-10. Tax additional. The tax imposed in this
30 Article shall be in addition to all other occupation or
-785- LRB9000671KDdvA
1 privilege taxes imposed by the State of Illinois or by any
2 municipal corporation or political subdivision thereof.
3 Section 25-15. Rate of tax. Unless otherwise provided
4 in this Section, the tax imposed by this Article is at the
5 rate of 6.25% of the selling price of tangible personal
6 property transferred as an incident to the sale of service,
7 but, for the purpose of computing this tax, in no event shall
8 the selling price be less than the cost price of the property
9 to the serviceman.
10 With respect to gasohol, as defined in Section 5-40, the
11 tax imposed by this Article applies to 70% of the selling
12 price of property transferred as an incident to the sale of
13 service on or after January 1, 1990, and before July 1, 1999,
14 and to 100% of the selling price thereafter, except that from
15 July 1, 1997 to July 1, 1999, the rate shall be 85% for
16 gasohol sold in this State during the 12 months beginning
17 July 1 following any calendar year for which the Department
18 has determined that the percentages in Section 10 of the
19 Gasohol Fuels Tax Abatement Act have not been met.
20 At the election of any registered serviceman made for
21 each fiscal year, sales of service in which the aggregate
22 annual cost price of tangible personal property transferred
23 as an incident to the sales of service is less than 35%, or
24 75% in the case of servicemen transferring prescription drugs
25 or servicemen engaged in graphic arts production, of the
26 aggregate annual total gross receipts from all sales of
27 service, the tax imposed by this Article shall be based on
28 the serviceman's cost price of the tangible personal property
29 transferred as an incident to the sale of those services.
30 The tax shall be imposed at the rate of 1% on food
31 prepared for immediate consumption and transferred incident
32 to a sale of service subject to this Article or Article 20
33 by an entity licensed under the Hospital Licensing Act or the
-786- LRB9000671KDdvA
1 Nursing Home Care Act. The tax shall also be imposed at the
2 rate of 1% on food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food that has been
5 prepared for immediate consumption and is not otherwise
6 included in this paragraph) and prescription and
7 nonprescription medicines, drugs, medical appliances,
8 modifications to a motor vehicle for the purpose of rendering
9 it usable by a disabled person, and insulin, urine testing
10 materials, syringes, and needles used by diabetics, for human
11 use. For the purposes of this Section, the term "soft drinks"
12 means any complete, finished, ready-to-use, non-alcoholic
13 drink, whether carbonated or not, including but not limited
14 to soda water, cola, fruit juice, vegetable juice, carbonated
15 water, and all other preparations commonly known as soft
16 drinks of whatever kind or description that are contained in
17 any closed or sealed bottle, can, carton, or container,
18 regardless of size. "Soft drinks" does not include coffee,
19 tea, non-carbonated water, infant formula, milk or milk
20 products as defined in the Grade A Pasteurized Milk and Milk
21 Products Act, or drinks containing 50% or more natural fruit
22 or vegetable juice.
23 Notwithstanding any other provisions of this Code, "food
24 for human consumption that is to be consumed off the premises
25 where it is sold" includes all food sold through a vending
26 machine, except soft drinks and food products that are
27 dispensed hot from a vending machine, regardless of the
28 location of the vending machine.
29 If the property that is acquired from a serviceman is
30 acquired outside Illinois and used outside Illinois before
31 being brought to Illinois for use here and is taxable under
32 this Article, the "selling price" on which the tax is
33 computed shall be reduced by an amount that represents a
34 reasonable allowance for depreciation for the period of prior
-787- LRB9000671KDdvA
1 out-of-state use.
2 Section 25-20. Collection. The tax imposed by this
3 Article shall be collected at the time of purchase in the
4 manner prescribed by the Department from the user by a
5 serviceman maintaining a place of business in this State or
6 by a serviceman authorized by the Department under Section
7 60-10 of this Code, and the tax shall be remitted to the
8 Department as provided in Sections 50-5 through 50-140 of
9 this Code.
10 The tax imposed by this Article that is not paid to a
11 serviceman under this Section shall be paid to the Department
12 directly by any person using the property within this State
13 as provided in Section 50-155 of this Code.
14 If a serviceman collects service use tax measured by
15 receipts or selling prices that are not subject to service
16 use tax, or if a serviceman, in collecting service use tax
17 measured by receipts or selling prices that are subject to
18 tax under this Article, collects more from the purchaser than
19 the required amount of the service use tax on the
20 transaction, the purchaser shall have a legal right to claim
21 a refund of that amount from the serviceman. If, however,
22 that amount is not refunded to the purchaser for any reason,
23 the serviceman is liable to pay that amount to the
24 Department. This paragraph does not apply to an amount
25 collected by the serviceman as service use tax on receipts or
26 selling prices that are subject to tax under this Article as
27 long as the collection is made in compliance with the tax
28 collection brackets prescribed by the Department in its rules
29 and regulations.
30 Section 25-25. S. O. T. nontaxability. If the
31 serviceman would not be taxable under Article 20 of this Code
32 despite all elements of his sale of service occurring in
-788- LRB9000671KDdvA
1 Illinois, then the tax imposed by this Article does not apply
2 to the use in this State of the property transferred as a
3 necessary incident to the sale of service.
4 Section 25-30. Method of stating tax. The tax imposed by
5 this Article may be stated as a distinct item separate and
6 apart from the selling price of the service, and shall be so
7 stated when requested by the buyer.
8 Section 25-35. Selling price of tangible personal
9 property transferred incident to a sale of service.
10 (a) Except as provided in subsection (b) of this
11 Section, the selling price of each item of tangible personal
12 property transferred incident to a sale of service may be
13 stated as a distinct item by the serviceman to the service
14 customer and the tax imposed by this Article shall when
15 collected be stated as a distinct item separate and apart
16 from the selling price of the tangible personal property. If
17 the selling price of each item of tangible personal property
18 transferred incidental to a sale of service is not stated as
19 a separate item on the serviceman's billing to the service
20 customer, then the tax imposed by this Article shall be based
21 on 50% of the serviceman's entire billing to the service
22 customer.
23 (b) When a serviceman contracts to design, develop and
24 produce special order machinery or equipment, the tax imposed
25 by this Article shall be based on the serviceman's cost price
26 of the tangible personal property transferred incident to the
27 completion of the contract.
28 Section 30-10. Tangible personal property used or
29 consumed in pollution control facilities. For purposes of
30 the taxes imposed by this Code, subject to the provisions of
31 Section 35-55, or subject to the provisions of Section 5.5 of
-789- LRB9000671KDdvA
1 the Illinois Enterprise Zone Act, all tangible personal
2 property to be used or consumed in the operation of pollution
3 control facilities, as defined in Section 5-75, within an
4 enterprise zone established pursuant to the Illinois
5 Enterprise Zone Act shall be exempt.
6 Section 30-20. Designated tangible personal property;
7 enterprise zone; high impact business. Subject to the
8 provisions of Section 35-55, all tangible personal property
9 to be used or consumed within an enterprise zone established
10 pursuant to the Illinois Enterprise Zone Act or subject to
11 the provisions of Section 5.5 of the Illinois Enterprise Zone
12 Act, all tangible personal property to be used or consumed by
13 any high impact business, in the process of the manufacturing
14 or assembly of tangible personal property for wholesale or
15 retail sale or lease or in the process of graphic arts
16 production if used or consumed at a facility which is a
17 Department of Commerce and Community Affairs certified
18 business and located in a county of more than 4,000 persons
19 and less than 45,000 persons is exempt from the taxes imposed
20 by this Code. This exemption includes repair and replacement
21 parts for machinery and equipment used primarily in the
22 process of manufacturing or assembling tangible personal
23 property or in the process of graphic arts production if used
24 or consumed at a facility which is a Department of Commerce
25 and Community Affairs certified business and located in a
26 county of more than 4,000 persons and less than 45,000
27 persons for wholesale or retail sale, or lease, and
28 equipment, manufacturing or graphic arts fuels, material and
29 supplies for the maintenance, repair or operation of such
30 manufacturing or assembling or graphic arts machinery or
31 equipment.
32 Section 30-25. Exemption - Machinery or Equipment used
-790- LRB9000671KDdvA
1 in the operation of high impact service facilities. Subject
2 to the provisions of Section 35-85 of this Code, machinery or
3 equipment used in the operation of a high impact service
4 facility, as defined in Section 35-85 of this Code, located
5 within an enterprise zone established pursuant to the
6 Illinois Enterprise Zone Act shall be exempt from the taxes
7 imposed by this Code. Machinery and equipment, new and
8 replacement, shall include, but not be limited to: (i) motor
9 driven heavy equipment not considered rolling stock which is
10 used for the purpose of transporting parcels, machinery, or
11 equipment, or trailers used for the shipment of parcels, and
12 equipment used to maintain and provide in-house services,
13 within the confines of the facility, and (ii) automated
14 machinery and equipment used for the purposes of transporting
15 parcels within the facility, along with all components,
16 parts, pieces, and computer software or hardware contained in
17 the electronic control systems related thereto. The
18 Department of Revenue shall promulgate such rules and
19 regulations as necessary to further define machinery and
20 equipment eligible for exemption in a high impact service
21 facility.
22 Section 30-30. High impact; building materials.
23 Beginning January 1, 1995, each retailer who makes a sale of
24 building materials that will be incorporated into a high
25 impact business location as designated by the Department of
26 Commerce and Community Affairs under Section 5.5 of the
27 Illinois Enterprise Zone Act may deduct receipts from such
28 sales when calculating only the 6.25% State rate of taxes
29 imposed by this Code. Beginning June 30, 1995, a retailer
30 may also deduct receipts from such sales when calculating any
31 applicable local taxes. However, until June 30, 1995, a
32 retailer may file claims for credit or refund to recover the
33 amount of any applicable local tax paid on such sales. No
-791- LRB9000671KDdvA
1 retailer who is eligible for the deduction or credit under
2 Section 35-90 of this Code for making a sale of building
3 materials to be incorporated into real estate in an
4 enterprise zone by rehabilitation, remodeling or new
5 construction shall be eligible for the deduction or credit
6 authorized under this Section.
7 Section 30-35. Machinery and equipment used in aircraft
8 maintenance facility. Subject to the provisions of Section
9 35-80 of this Code, machinery and equipment used in the
10 operation of an aircraft maintenance facility as defined in
11 Section 35-80, located within an enterprise zone shall be
12 exempt from the taxes imposed by this Code. The machinery
13 and equipment exempted by this Section is limited to
14 machinery and equipment used primarily to maintain, rebuild
15 or repair aircraft used as rolling stock moving in interstate
16 commerce for hire by the operator of the facility. The
17 Department of Revenue shall promulgate any rules and
18 regulations necessary to further define machinery and
19 equipment eligible for exemption in an aircraft maintenance
20 facility.
21 Section 30-40. Tangible personal property used or
22 consumed in aircraft maintenance facility. Subject to the
23 provisions of Section 35-80, all tangible personal property
24 to be used or consumed, within an enterprise zone established
25 pursuant to the Illinois Enterprise Zone Act, by any aircraft
26 maintenance facility, directly in the process of maintaining,
27 rebuilding or repairing aircraft is exempt from the taxes
28 imposed by this Code. The exemption includes repair and
29 replacement parts for machinery and equipment used primarily
30 in the process of maintaining, rebuilding or repairing
31 aircraft, and also includes equipment, fuels, material and
32 supplies for the maintenance, repair or operation of such
-792- LRB9000671KDdvA
1 machinery or equipment.
2 Section 30-60. Farm chemicals. For purposes of the
3 retailers' occupation tax and the use tax, farm chemicals are
4 exempt.
5 Section 30-105. Motor vehicle used for renting. For
6 purposes of the retailers' occupation tax and the use tax, a
7 motor vehicle of the first division, a motor vehicle of the
8 second division that is a self-contained motor vehicle
9 designed or permanently converted to provide living quarters
10 for recreational, camping, or travel use, with direct walk
11 through access to the living quarters from the driver's seat,
12 or a motor vehicle of the second division that is of the van
13 configuration designed for the transportation of not less
14 than 7 nor more than 16 passengers, as defined in Section
15 1-146 of the Illinois Vehicle Code, that is used for
16 automobile renting, as defined in the Automobile Renting
17 Occupation and Use Tax Act is exempt.
18 Section 30-110. Passenger car subject to replacement
19 vehicle tax. For purposes of the retailers' occupation tax
20 and the use tax, proceeds of that portion of the selling
21 price of a passenger car the sale of which is subject to the
22 Replacement Vehicle Tax are exempt.
23 Section 30-115. Motor vehicle sold to a non-resident.
24 For purposes of the retailers' occupation tax and the use
25 tax, a motor vehicle sold in this State to a nonresident even
26 though the motor vehicle is delivered to the nonresident in
27 this State, if the motor vehicle is not to be titled in this
28 State, and if a driveaway decal permit is issued to the motor
29 vehicle as provided in Section 3-603 of the Illinois Vehicle
30 Code or if the nonresident purchaser has vehicle registration
-793- LRB9000671KDdvA
1 plates to transfer to the motor vehicle upon returning to his
2 or her home state is exempt. The issuance of the driveaway
3 decal permit or having the out-of-state registration plates
4 to be transferred is prima facie evidence that the motor
5 vehicle will not be titled in this State.
6 Section 30-120. Petroleum products. For purposes of the
7 retailers' occupation tax, petroleum products sold to a
8 purchaser if the seller is prohibited by federal law from
9 charging tax to the purchaser are exempt.
10 Section 30-130. Fuel consumed by ships. For purposes of
11 the retailers' occupation tax, fuel consumed or used in the
12 operation of ships, barges, or vessels that are used
13 primarily in or for the transportation of property or the
14 conveyance of persons for hire on rivers bordering on this
15 State if the fuel is delivered by the seller to the
16 purchaser's barge, ship, or vessel while it is afloat upon
17 that bordering river is exempt.
18 Section 30-210. Florist.
19 (a) For purposes of the retailers' occupation tax, a
20 transaction in which the purchase order is received by a
21 florist who is located outside Illinois, but who has a
22 florist located in Illinois deliver the property to the
23 purchaser or the purchaser's donee in Illinois is exempt.
24 (b) For purposes of the use tax, personal property
25 delivered to a purchaser or purchaser's donee inside Illinois
26 when the purchase order for that personal property was
27 received by a florist located outside Illinois who has a
28 florist located inside Illinois deliver the personal property
29 is exempt.
30 Section 30-220. Multistate exemption.
-794- LRB9000671KDdvA
1 (a) To prevent actual or likely multistate taxation, the
2 taxes imposed by Article 15 and Article 25 do not apply to
3 the use of tangible personal property in this State under the
4 following circumstances:
5 (1) The use, in this State, of tangible personal
6 property acquired outside this State by a nonresident
7 individual and brought into this State by the individual
8 for his or her own use while temporarily within this
9 State or while passing through this State.
10 (2) The use, in this State, of tangible personal
11 property that is acquired outside this State and caused
12 to be brought into this State by a person who has already
13 paid a tax in another state in respect to the sale,
14 purchase, or use of that property, to the extent of the
15 amount of the tax properly due and paid in the other
16 state.
17 (3) The temporary storage, in this State, of
18 tangible personal property that is acquired outside this
19 State and that, after being brought into this State and
20 stored here temporarily, is used solely outside this
21 State or is physically attached to or incorporated into
22 other tangible personal property that is used solely
23 outside this State, or is altered by converting,
24 fabricating, manufacturing, printing, processing, or
25 shaping, and, as altered, is used solely outside this
26 State.
27 (b) To prevent actual or likely multistate taxation, the
28 tax imposed by Article 15 does not apply to the temporary
29 storage in this State of building materials and fixtures that
30 are acquired either in this State or outside this State by an
31 Illinois registered combination retailer and construction
32 contractor, and that the purchaser thereafter uses outside
33 this State by incorporating that property into real estate
34 located outside this State.
-795- LRB9000671KDdvA
1 (c) To prevent actual or likely multistate taxation, the
2 tax imposed by Article 25 does not apply to the use, in this
3 State, of property that is acquired outside this State and
4 that is moved into this State for use as rolling stock moving
5 in interstate commerce.
6 Section 30-225. Property acquired by nonresident. The
7 taxes imposed by Article 15 and Article 25 do not apply to
8 the use, in this State, of tangible personal property that is
9 acquired outside this State by a nonresident individual who
10 then brings the property to this State for use here and who
11 has used the property outside this State for at least 3
12 months before bringing the property to this State.
13 Where a business that is not operated in Illinois, but is
14 operated in another State, is moved to Illinois or opens an
15 office, plant, or other business facility in Illinois, that
16 business shall not be taxed on its use, in Illinois, of used
17 tangible personal property, other than, for purposes of the
18 use tax only, items of tangible personal property that must
19 be titled or registered with the State of Illinois or whose
20 registration with the United States Government must be filed
21 with the State of Illinois, that the business bought outside
22 Illinois and used outside Illinois in the operation of the
23 business for at least 3 months before moving the used
24 property to Illinois for use in this State.
25 Section 30-230. Manufacturer's Purchase Credit. For
26 purposes of the use tax and the service use tax, for
27 purchases of machinery and equipment made on and after
28 January 1, 1995, a purchaser of manufacturing machinery and
29 equipment that qualifies for the exemption provided by
30 Section 30-95 of this Code earns a credit in an amount equal
31 to a fixed percentage of the tax which would have been
32 incurred under Article 15 or 25 of this Code on those
-796- LRB9000671KDdvA
1 purchases. For purchases of graphic arts machinery and
2 equipment made on or after July 1, 1996, a purchaser of
3 graphic arts machinery and equipment that qualifies for the
4 exemption provided by Section 30-90 of this Code earns a
5 credit in an amount equal to a fixed percentage of the tax
6 that would have been incurred under Article 15 or 25 of this
7 Code on those purchases. The credit earned for purchases of
8 manufacturing machinery and equipment or graphic arts
9 machinery and equipment shall be referred to as the
10 Manufacturer's Purchase Credit. A graphic arts producer is a
11 person engaged in graphic arts production as defined in
12 Section 5-45 of this Code. Beginning July 1, 1996, all
13 references in this Section to manufacturers or manufacturing
14 shall also be deemed to refer to graphic arts producers or
15 graphic arts production.
16 The amount of credit shall be a percentage of the tax
17 that would have been incurred on the purchase of
18 manufacturing machinery and equipment or graphic arts
19 machinery and equipment if the exemptions provided by Section
20 30-90 or 30-95 of this Code had not been applicable. The
21 percentage shall be as follows:
22 (1) 15% for purchases made on or before June 30,
23 1995.
24 (2) 25% for purchases made after June 30, 1995, and
25 on or before June 30, 1996.
26 (3) 40% for purchases made after June 30, 1996, and
27 on or before June 30, 1997.
28 (4) 50% for purchases made on or after July 1,
29 1997.
30 A purchaser of production related tangible personal
31 property desiring to use the Manufacturer's Purchase Credit
32 shall certify to the seller that the purchaser is satisfying
33 all or part of the liability under Article 15 or Article 25
34 of this Code that is due on the purchase of the production
-797- LRB9000671KDdvA
1 related tangible personal property by use of Manufacturer's
2 Purchase Credit. The Manufacturer's Purchase Credit
3 certification must be dated and shall include the name and
4 address of the purchaser, the purchaser's registration
5 number, if registered, the credit being applied, and a
6 statement that the State use tax or service use tax liability
7 is being satisfied with the manufacturer's or graphic arts
8 producer's accumulated purchase credit. Certification may be
9 incorporated into the manufacturer's or graphic arts
10 producer's purchase order. Manufacturer's Purchase Credit
11 certification by the manufacturer or graphic arts producer
12 may be used to satisfy the retailer's or serviceman's
13 liability under Article 10 or Article 20 of this Code for the
14 credit claimed, not to exceed 6.25% of the receipts subject
15 to tax from a qualifying purchase, but only if the retailer
16 or serviceman reports the Manufacturer's Purchase Credit
17 claimed as required by the Department. The Manufacturer's
18 Purchase Credit earned by purchase of exempt manufacturing
19 machinery and equipment or graphic arts machinery and
20 equipment is a non-transferable credit. A manufacturer or
21 graphic arts producer that enters into a contract involving
22 the installation of tangible personal property into real
23 estate within a manufacturing or graphic arts production
24 facility may authorize a construction contractor to utilize
25 credit accumulated by the manufacturer or graphic arts
26 producer to purchase the tangible personal property. A
27 manufacturer or graphic arts producer intending to use
28 accumulated credit to purchase such tangible personal
29 property shall execute a written contract authorizing the
30 contractor to utilize a specified dollar amount of credit.
31 The contractor shall furnish the supplier with the
32 manufacturer's or graphic arts producer's name, registration
33 or resale number, and a statement that a specific amount of
34 the use tax or service use tax liability, not to exceed 6.25%
-798- LRB9000671KDdvA
1 of the selling price, is being satisfied with the credit. The
2 manufacturer or graphic arts producer shall remain liable to
3 timely report all information required by the annual Report
4 of Manufacturer's Purchase Credit Used for all credit
5 utilized by a construction contractor.
6 The Manufacturer's Purchase Credit may be used to satisfy
7 liability under Article 15 or Article 25 of this Code due on
8 the purchase of production related tangible personal property
9 (including purchases by a manufacturer, by a graphic arts
10 producer, or by a lessor who rents or leases the use of the
11 property to a manufacturer or graphic arts producer) that
12 does not otherwise qualify for the manufacturing machinery
13 and equipment exemption or the graphic arts machinery and
14 equipment exemption. "Production related tangible personal
15 property" means (i) all tangible personal property used or
16 consumed by the purchaser in a manufacturing facility in
17 which a manufacturing process described in Section 30-100 of
18 this Code takes place, including tangible personal property
19 purchased for incorporation into real estate within a
20 manufacturing facility and including, but not limited to,
21 tangible personal property used or consumed in activities
22 such as preproduction material handling, receiving, quality
23 control, inventory control, storage, staging, and packaging
24 for shipping and transportation purposes; (ii) all tangible
25 personal property used or consumed by the purchaser in a
26 graphic arts facility in which graphic arts production as
27 described in Section 5-45 of this Code takes place, including
28 tangible personal property purchased for incorporation into
29 real estate within a graphic arts facility and including, but
30 not limited to, all tangible personal property used or
31 consumed in activities such as graphic arts preliminary or
32 pre-press production, pre-production material handling,
33 receiving, quality control, inventory control, storage,
34 staging, sorting, labeling, mailing, tying, wrapping, and
-799- LRB9000671KDdvA
1 packaging; and (iii) all tangible personal property used or
2 consumed by the purchaser for research and development.
3 "Production related tangible personal property" does not
4 include (i) tangible personal property used, within or
5 without a manufacturing facility, in sales, purchasing,
6 accounting, fiscal management, marketing, personnel
7 recruitment or selection, or landscaping or (ii) tangible
8 personal property required to be titled or registered with a
9 department, agency, or unit of federal, state, or local
10 government. The Manufacturer's Purchase Credit may be used
11 to satisfy the tax arising either from the purchase of
12 machinery and equipment on or after January 1, 1995 for which
13 the exemption provided by Section 30-95 of this Code was
14 erroneously claimed, or the purchase of machinery and
15 equipment on or after July 1, 1996 for which the exemption
16 provided by Section 30-90 of this Code was erroneously
17 claimed, but not in satisfaction of penalty, if any, and
18 interest for failure to pay the tax when due. A purchaser of
19 production related tangible personal property who is required
20 to pay Illinois use tax or service use tax on the purchase
21 directly to the Department may utilize the Manufacturer's
22 Purchase Credit in satisfaction of the tax arising from that
23 purchase, but not in satisfaction of penalty and interest. A
24 purchaser who uses the Manufacturer's Purchase Credit to
25 purchase property which is later determined not to be
26 production related tangible personal property may be liable
27 for tax, penalty, and interest on the purchase of that
28 property as of the date of purchase but shall be entitled to
29 use the disallowed Manufacturer's Purchase Credit, so long as
30 it has not expired, on qualifying purchases of production
31 related tangible personal property not previously subject to
32 credit usage. The Manufacturer's Purchase Credit earned by a
33 manufacturer or graphic arts producer expires the last day of
34 the second calendar year following the calendar year in which
-800- LRB9000671KDdvA
1 the credit arose.
2 A purchaser earning Manufacturer's Purchase Credit shall
3 sign and file an annual Report of Manufacturer's Purchase
4 Credit Earned for each calendar year no later than the last
5 day of the sixth month following the calendar year in which a
6 Manufacturer's Purchase Credit is earned. A Report of
7 Manufacturer's Purchase Credit Earned shall be filed on forms
8 as prescribed or approved by the Department and shall state,
9 for each month of the calendar year: (i) the total purchase
10 price of all purchases of exempt manufacturing or graphic
11 arts machinery on which the credit was earned; (ii) the total
12 State use tax or service use tax which would have been due on
13 those items; (iii) the percentage used to calculate the
14 amount of credit earned; (iv) the amount of credit earned;
15 and (v) such other information as the Department may
16 reasonably require. A purchaser earning Manufacturer's
17 Purchase Credit shall maintain records which identify, as to
18 each purchase of manufacturing or graphic arts machinery and
19 equipment on which the purchaser earned Manufacturer's
20 Purchase Credit, the vendor (including, if applicable, either
21 the vendor's registration number or Federal Employer
22 Identification Number), the purchase price, and the amount of
23 Manufacturer's Purchase Credit earned on each purchase.
24 A purchaser using Manufacturer's Purchase Credit shall
25 sign and file an annual Report of Manufacturer's Purchase
26 Credit Used for each calendar year no later than the last day
27 of the sixth month following the calendar year in which a
28 Manufacturer's Purchase Credit is used. A Report of
29 Manufacturer's Purchase Credit Used shall be filed on forms
30 as prescribed or approved by the Department and shall state,
31 for each month of the calendar year: (i) the total purchase
32 price of production related tangible personal property
33 purchased from Illinois suppliers; (ii) the total purchase
34 price of production related tangible personal property
-801- LRB9000671KDdvA
1 purchased from out-of-state suppliers; (iii) the total amount
2 of credit used during such month; and (iv) such other
3 information as the Department may reasonably require. A
4 purchaser using Manufacturer's Purchase Credit shall maintain
5 records that identify, as to each purchase of production
6 related tangible personal property on which the purchaser
7 used Manufacturer's Purchase Credit, the vendor (including,
8 if applicable, either the vendor's registration number or
9 Federal Employer Identification Number), the purchase price,
10 and the amount of Manufacturer's Purchase Credit used on each
11 purchase.
12 No annual report shall be filed before May 1, 1996. A
13 purchaser that fails to file an annual Report of
14 Manufacturer's Purchase Credit Earned or an annual Report of
15 Manufacturer's Purchase Credit Used by the last day of the
16 sixth month following the end of the calendar year shall
17 forfeit all Manufacturer's Purchase Credit for that calendar
18 year unless it establishes that its failure to file was due
19 to reasonable cause. Manufacturer's Purchase Credit reports
20 may be amended to report and claim credit on qualifying
21 purchases not previously reported at any time before the
22 credit would have expired, unless both the Department and the
23 purchaser have agreed to an extension of the statute of
24 limitations for the issuance of a notice of tax liability as
25 provided in Section 50-145 of this Code. If the time for
26 assessment or refund has been extended, then amended reports
27 for a calendar year may be filed at any time prior to the
28 date to which the statute of limitations for the calendar
29 year or portion thereof has been extended. No Manufacturer's
30 Purchase Credit report filed with the Department for periods
31 prior to January 1, 1995 shall be approved. Manufacturer's
32 Purchase Credit claimed on an amended report may be used to
33 satisfy tax liability under Article 15 or Article 25 of this
34 Code (i) on qualifying purchases of production related
-802- LRB9000671KDdvA
1 tangible personal property made after the date the amended
2 report is filed or (ii) assessed by the Department on
3 qualifying purchases of production related tangible personal
4 property made in the case of manufacturers on or after
5 January 1, 1995, or in the case of graphic arts producers on
6 or after July 1, 1996.
7 If the purchaser is not the manufacturer or a graphic
8 arts producer, but rents or leases the use of the property to
9 a manufacturer or graphic arts producer, the purchaser may
10 earn, report, and use Manufacturer's Purchase Credit in the
11 same manner as a manufacturer or graphic arts producer.
12 A purchaser shall not be entitled to any Manufacturer's
13 Purchase Credit for a purchase that is required to be
14 reported and is not timely reported as provided in this
15 Section. A purchaser remains liable for (i) any tax that was
16 satisfied by use of a Manufacturer's Purchase Credit, as of
17 the date of purchase, if that use is not timely reported as
18 required in this Section and (ii) for any applicable
19 penalties and interest for failing to pay the tax when due.
20 Section 35-5. Certificate of registration.
21 (a) All of the provisions of Section 35-5 and Sections
22 35-25 through 35-45 of this Code concerning registration
23 shall apply to the retailers' occupation tax, the use tax,
24 the service occupation tax, and the service use tax unless
25 otherwise stated. To the extent that any provision
26 specifically applying to the use tax, the service occupation
27 tax, or the service use tax is inconsistent with a general
28 provision applying to all of the taxes, the specific
29 provision shall control.
30 (b) It is unlawful for any person to engage in the
31 business of selling tangible personal property at retail in
32 this State without a certificate of registration from the
33 Department. Application for a certificate of registration
-803- LRB9000671KDdvA
1 shall be made to the Department upon forms furnished by it.
2 Each such application shall be signed and verified and shall
3 state: (1) the name and social security number of the
4 applicant; (2) the address of his principal place of
5 business; (3) the address of the principal place of business
6 from which he engages in the business of selling tangible
7 personal property at retail in this State and the addresses
8 of all other places of business, if any (enumerating such
9 addresses, if any, in a separate list attached to and made a
10 part of the application), from which he engages in the
11 business of selling tangible personal property at retail in
12 this State; (4) the name and address of the person or persons
13 who will be responsible for filing returns and payment of
14 taxes due under Article 10 of this Code; (5) in the case of a
15 corporation, the name, title, and social security number of
16 each corporate officer; (6) in the case of a limited
17 liability company, the name, social security number, and FEIN
18 number of each manager and member; and (7) such other
19 information as the Department may reasonably require. The
20 application shall contain an acceptance of responsibility
21 signed by the person or persons who will be responsible for
22 filing returns and payment of the taxes due under Article 10.
23 If the applicant will sell tangible personal property at
24 retail through vending machines, his application to register
25 shall indicate the number of vending machines to be so
26 operated; and thereafter, he shall notify the Department by
27 January 31 of the number of vending machines which such
28 person was using in his business of selling tangible personal
29 property at retail on the preceding December 31.
30 The Department may deny a certificate of registration to
31 any applicant if the owner, any partner, any manager or
32 member of a limited liability company, or a corporate officer
33 of the applicant, is or has been the owner, a partner, a
34 manager or member of a limited liability company, or a
-804- LRB9000671KDdvA
1 corporate officer, of another retailer that is in default for
2 moneys due under this Code.
3 Section 35-10. Certificate of registration; use tax. A
4 retailer maintaining a place of business in this State, if
5 required to register for purposes of the retailers'
6 occupation tax, need not obtain an additional certificate of
7 registration for purposes of the use tax, but shall be deemed
8 to be sufficiently registered under the provisions of this
9 Code. Every retailer maintaining a place of business in this
10 State, if not required to register for purposes of the
11 retailers' occupation tax, shall apply to the Department
12 (upon a form prescribed and furnished by the Department) for
13 a certificate of registration for purposes of the use tax.
14 Section 35-20. Certificate of registration; service use
15 tax. A serviceman maintaining a place of business in this
16 State, if required to register for purposes of the retailers'
17 occupation tax, for purposes of the use tax, or for purposes
18 of the service occupation tax, need not obtain an additional
19 certificate of registration for purposes of the service use
20 tax, but shall be deemed to be sufficiently registered by
21 virtue of his being registered for purposes of the retailers'
22 occupation tax, the use tax, or the service occupation tax.
23 Every serviceman maintaining a place of business in this
24 State, if not required to register for purposes of the
25 retailers' occupation tax, the use tax, or the service
26 occupation tax, shall apply to the Department (upon a form
27 prescribed and furnished by the Department) for a certificate
28 of registration for purposes of the service use tax.
29 Section 35-25. Bonds.
30 (a) Every applicant for a certificate of registration
31 shall, at the time of filing such application, furnish a bond
-805- LRB9000671KDdvA
1 from a surety company authorized to do business in the State
2 of Illinois, or an irrevocable bank letter of credit or a
3 bond signed by 2 personal sureties who have filed, with the
4 Department, sworn statements disclosing net assets equal to
5 at least 3 times the amount of the bond to be required of
6 such applicant, or a bond secured by an assignment of a bank
7 account or certificate of deposit, stocks or bonds,
8 conditioned upon the applicant paying to the State of
9 Illinois all moneys becoming due under this Code and under
10 any other State tax law or municipal or county tax ordinance
11 or resolution under which the certificate of registration
12 that is issued to the applicant under Sections 35-5 through
13 35-20 will permit the applicant to engage in business without
14 registering separately under such other law, ordinance or
15 resolution. The Department shall fix the amount of such
16 security in each case, taking into consideration the amount
17 of money expected to become due from the applicant under this
18 Code and under any other State tax law or municipal or county
19 tax ordinance or resolution under which the certificate of
20 registration that is issued to the applicant under Sections
21 35-5 through 35-20 will permit the applicant to engage in
22 business without registering separately under such other law,
23 ordinance or resolution. The amount of security required by
24 the Department shall be such as, in its opinion, will protect
25 the State of Illinois against failure to pay the amount which
26 may become due from the applicant under this Code and under
27 any other State tax law or municipal or county tax ordinance
28 or resolution under which the certificate of registration
29 that is issued to the applicant under Sections 35-5 through
30 35-20 will permit the applicant to engage in business without
31 registering separately under such other law, ordinance or
32 resolution, but the amount of the security required by the
33 Department shall not exceed three times the amount of the
34 applicant's average monthly tax liability, or $50,000.00,
-806- LRB9000671KDdvA
1 whichever amount is lower.
2 (b) With respect to security other than bonds (upon which
3 the Department may sue in the event of a forfeiture), if the
4 taxpayer fails to pay, when due, any amount whose payment
5 such security guarantees, the Department shall, after such
6 liability is admitted by the taxpayer or established by the
7 Department through the issuance of a final assessment that
8 has become final under the law, convert the security which
9 that taxpayer has furnished into money for the State, after
10 first giving the taxpayer at least 10 days' written notice,
11 by registered or certified mail, to pay the liability or
12 forfeit such security to the Department. If the security
13 consists of stocks or bonds or other securities which are
14 listed on a public exchange, the Department shall sell such
15 securities through such public exchange. If the security
16 consists of an irrevocable bank letter of credit, the
17 Department shall convert the security in the manner provided
18 for in the Uniform Commercial Code. If the security consists
19 of a bank certificate of deposit, the Department shall
20 convert the security into money by demanding and collecting
21 the amount of such bank certificate of deposit from the bank
22 which issued such certificate. If the security consists of a
23 type of stocks or other securities which are not listed on a
24 public exchange, the Department shall sell such security to
25 the highest and best bidder after giving at least 10 days'
26 notice of the date, time and place of the intended sale by
27 publication in the "State Official Newspaper". If the
28 Department realizes more than the amount of such liability
29 from the security, plus the expenses incurred by the
30 Department in converting the security into money, the
31 Department shall pay such excess to the taxpayer who
32 furnished such security, and the balance shall be paid into
33 the State Treasury.
34 (c) No certificate of registration under this Code shall
-807- LRB9000671KDdvA
1 be issued by the Department until the applicant provides the
2 Department with satisfactory security as herein provided for.
3 (d) The Department shall discharge any surety and shall
4 release and return any security deposited, assigned, pledged
5 or otherwise provided to it by a taxpayer under this Section
6 within 30 days after:
7 (1) such taxpayer becomes a Prior Continuous
8 Compliance taxpayer as defined in Section 35-35; or
9 (2) such taxpayer has ceased to collect receipts on
10 which he is required to remit tax to the Department, has
11 filed a final tax return, and has paid to the Department
12 an amount sufficient to discharge his remaining tax
13 liability, as determined by the Department, under this
14 Code and under every other State tax law or municipal or
15 county tax ordinance or resolution under which the
16 certificate of registration issued under Sections 35-5
17 through 35-20 permits the registrant to engage in
18 business without registering separately under such other
19 law, ordinance or resolution. The Department shall make
20 a final determination of the taxpayer's outstanding tax
21 liability as expeditiously as possible after his final
22 tax return has been filed; if the Department cannot make
23 such final determination within 45 days after receiving
24 the final tax return, within such period it shall so
25 notify the taxpayer, stating its reasons therefor.
26 Section 35-35. Prior continuous compliance taxpayer.
27 (a) Any person who is registered under Section 35-5 as of
28 March 8, 1963, and who, during the 3-year period immediately
29 prior to March 8, 1963, or during a continuous 3-year period
30 part of which passed immediately before and the remainder of
31 which passes immediately after March 8, 1963, has been so
32 registered continuously and who is determined by the
33 Department not to have been either delinquent or deficient in
-808- LRB9000671KDdvA
1 the payment of tax liability during that period under this
2 Code or under any other State tax law or municipal or county
3 tax ordinance or resolution under which the certificate of
4 registration that is issued to the registrant under this Code
5 will permit the registrant to engage in business without
6 registering separately under such other law, ordinance or
7 resolution, shall be considered to be a Prior Continuous
8 Compliance taxpayer. Also any taxpayer who has, as verified
9 by the Department, faithfully and continuously complied with
10 the condition of his bond or other security under the
11 provisions of this Code for a period of 3 consecutive years
12 shall be considered to be a Prior Continuous Compliance
13 taxpayer.
14 (b) Every Prior Continuous Compliance taxpayer shall be
15 exempt from all requirements under this Code concerning the
16 furnishing of security as a condition precedent to his being
17 authorized to engage in the business of selling tangible
18 personal property at retail in this State. This exemption
19 shall continue for each such taxpayer until such time as he
20 may be determined by the Department to be delinquent in the
21 filing of any returns, or is determined by the Department
22 (either through the Department's issuance of a final
23 assessment which has become final under the Code, or by the
24 taxpayer's filing of a return which admits tax that is not
25 paid to be due) to be delinquent or deficient in the paying
26 of any tax under this Code or under any other State tax law
27 or municipal or county tax ordinance or resolution under
28 which the certificate of registration that is issued to the
29 registrant under Sections 35-5 through 35-20 will permit the
30 registrant to engage in business without registering
31 separately under such other law, ordinance or resolution, at
32 which time that taxpayer shall become subject to all the
33 financial responsibility requirements of this Code and, as a
34 condition of being allowed to continue to engage in the
-809- LRB9000671KDdvA
1 business of selling tangible personal property at retail,
2 shall be required to post bond or other acceptable security
3 with the Department covering liability which such taxpayer
4 may thereafter incur. Any taxpayer who fails to pay an
5 admitted or established liability under this Code may also be
6 required to post bond or other acceptable security with this
7 Department guaranteeing the payment of such admitted or
8 established liability.
9 Section 35-40. Registrants in default. No certificate of
10 registration shall be issued to any person who is in default
11 to the State of Illinois for moneys due under this Code or
12 under any other State tax law or municipal or county tax
13 ordinance or resolution under which the certificate of
14 registration that is issued to the applicant under this Code
15 will permit the applicant to engage in business without
16 registering separately under such other law, ordinance or
17 resolution.
18 Section 35-45. Hearings. Any person aggrieved by any
19 decision of the Department under Sections 35-5 through 35-40
20 may, within 20 days after notice of such decision, protest
21 and request a hearing, whereupon the Department shall give
22 notice to such person of the time and place fixed for such
23 hearing and shall hold a hearing in conformity with the
24 provisions of this Code and then issue its final
25 administrative decision in the matter to such person. In the
26 absence of such a protest within 20 days, the Department's
27 decision shall become final without any further determination
28 being made or notice given.
29 Section 35-50. Resale number. If the purchaser is not
30 registered with the Department as a taxpayer, but claims to
31 be a reseller of the tangible personal property in such a way
-810- LRB9000671KDdvA
1 that such resales are not taxable under this Code or under
2 some other tax law which the Department may administer, such
3 purchaser (except in the case of an out-of-State purchaser
4 who will always resell and deliver the property to his
5 customers outside Illinois) shall apply to the Department for
6 a resale number. Such applicant shall state facts which will
7 show the Department why such applicant is not liable for tax
8 under this Code or under some other tax law which the
9 Department may administer on any of his resales and shall
10 furnish such additional information as the Department may
11 reasonably require.
12 Upon approval of the application, the Department shall
13 assign a resale number to the applicant and shall certify
14 such number to him. The Department may cancel any such number
15 which is obtained through misrepresentation, or which is used
16 to make a purchase tax-free when the purchase in fact is not
17 a purchase for resale, or which no longer applies because of
18 the purchaser's having discontinued the making of tax exempt
19 resales of the property.
20 The Department may restrict the use of the number to one
21 year at a time or to some other definite period if the
22 Department finds it impracticable or otherwise inadvisable to
23 issue such numbers for indefinite periods.
24 Except as provided hereinabove in this Section, a sale
25 shall be made tax-free on the ground of being a sale for
26 resale if the purchaser has an active registration number or
27 resale number from the Department and furnishes that number
28 to the seller in connection with certifying to the seller
29 that any sale to such purchaser is nontaxable because of
30 being a sale for resale.
31 Failure to present an active registration number or
32 resale number and a certification to the seller that a sale
33 is for resale creates a presumption that a sale is not for
34 resale. This presumption may be rebutted by other evidence
-811- LRB9000671KDdvA
1 that all of the seller's sales are sale for resale, or that a
2 particular sale is a sale for resale.
3 Section 35-55. High impact business. Except for high
4 impact businesses, the exemption stated in Sections 30-10 and
5 30-20 shall only apply to business enterprises which:
6 (1) either (i) make investments which cause the
7 creation of a minimum of 200 full-time equivalent jobs in
8 Illinois or (ii) make investments which cause the
9 retention of a minimum of 2000 full-time jobs in Illinois
10 or (iii) make investments of a minimum of $40,000,000 and
11 retain at least 90% of the jobs in place on the date on
12 which the exemption is granted and for the duration of
13 the exemption; and
14 (2) are located in an enterprise zone established
15 pursuant to the Illinois Enterprise Zone Act; and
16 (3) are certified by the Department of Commerce and
17 Community Affairs as complying with the requirements
18 specified in clauses (1), (2) and (3).
19 Any business enterprise seeking to avail itself of the
20 exemptions stated in Sections 30-10 or 30-20, or both, shall
21 make application to the Department of Commerce and Community
22 Affairs in such form and providing such information as may be
23 prescribed by the Department of Commerce and Community
24 Affairs. However, no business enterprise shall be required,
25 as a condition for certification under clause (3) of this
26 Section, to attest that its decision to invest under clause
27 (1) of this Section and to locate under clause (2) of this
28 Section is predicated upon the availability of the exemptions
29 authorized by Sections 30-10 or 30-20.
30 The Department of Commerce and Community Affairs shall
31 determine whether the business enterprise meets the criteria
32 prescribed in this Section. If the Department of Commerce
33 and Community Affairs determines that such business
-812- LRB9000671KDdvA
1 enterprise meets the criteria, it shall issue a certificate
2 of eligibility for exemption to the business enterprise in
3 such form as is prescribed by the Department of Revenue. The
4 Department of Commerce and Community Affairs shall act upon
5 such certification requests within 60 days after receipt of
6 the application, and shall file with the Department of
7 Revenue a copy of each certificate of eligibility for
8 exemption.
9 The Department of Commerce and Community Affairs shall
10 have the power to promulgate rules and regulations to carry
11 out the provisions of this Section including the power to
12 define the amounts and types of eligible investments not
13 specified in this Section which business enterprises must
14 make in order to receive the exemptions stated in Sections
15 30-10 and 30-20 of this Code; and to require that any
16 business enterprise that is granted a tax exemption repay the
17 exempted tax if the business enterprise fails to comply with
18 the terms and conditions of the certification.
19 Such certificate of eligibility for exemption shall be
20 presented by the business enterprise to its supplier when
21 making the initial purchase of tangible personal property for
22 which an exemption is granted by Section 30-10 or Section
23 30-20, or both, together with a certification by the business
24 enterprise that such tangible personal property is exempt
25 from taxation under Section 30-10 or Section 30-20 and by
26 indicating the exempt status of each subsequent purchase on
27 the face of the purchase order.
28 The Department of Commerce and Community Affairs shall
29 determine the period during which such exemption from the
30 taxes imposed under this Code is in effect which shall not
31 exceed 20 years.
32 Section 35-60. Exemption identification number. On or
33 before December 31, 1986, except as hereinafter provided,
-813- LRB9000671KDdvA
1 each entity otherwise eligible under Section 30-170 shall
2 make application to the Department for an exemption
3 identification number. In the case of a corporation, society,
4 association, foundation, or institution organized and
5 operated exclusively for charitable purposes and that has
6 more than 50 subsidiary organizations in Illinois, the
7 Department, in its sole discretion, may issue one exemption
8 identification number to be used by the parent organization
9 and each subsidiary organization.
10 Each exemption identification number or renewal number
11 shall be valid for 5 years after the first day of the month
12 following the month of issuance. Not less than 3 months
13 before the expiration date, an application for renewal shall
14 be filed.
15 Each application for an exemption identification number
16 or a renewal number shall contain information and be
17 accompanied by documentation as shall be requested by the
18 Department.
19 Section 35-65. Exemption identification number; list.
20 Upon request made on or after July 1, 1987, the Department
21 shall furnish to any county or municipality a list containing
22 the name of each corporation, society, association,
23 foundation or institution organized and operated exclusively
24 for charitable, religious or educational purposes, and each
25 not-for-profit corporation, society, association, foundation,
26 institution or organization which has no compensated officers
27 or employees and which is organized and operated primarily
28 for the recreation of persons 55 years of age or older, which
29 had a valid exemption identification number on the first day
30 of January or July, as the case may be, proceeding the date
31 on which such request is received and which is located within
32 the corporate limits of such municipality or the
33 unincorporated territory of such county, except that the list
-814- LRB9000671KDdvA
1 need not include subsidiary organizations using an exemption
2 identification number issued to its parent organization as
3 provided by Section 30-20.
4 Section 35-75. Exemption from bonding; Department of
5 Revenue. The Department is not required to furnish any bond
6 nor to make a deposit for or pay any costs or fees of any
7 court or officer thereof in any judicial proceedings under
8 this Code. Whenever a certified copy of a judgment or order
9 for attachment, issued from any court for the enforcement or
10 collection of any liability created by this Code, is levied
11 by any sheriff or coroner upon any personal property, and
12 such property is claimed by any person other than the
13 judgment debtor or the defendant in the attachment, or is
14 claimed by the judgment debtor or defendant in the attachment
15 as exempt from enforcement of a judgment thereon by virtue of
16 the exemption laws of this State, then the person making such
17 claim shall give notice in writing of his or her claim and of
18 his or her intention to prosecute the claim, to the sheriff
19 or coroner within 10 days after the making of the levy. On
20 receiving such notice, the sheriff or coroner shall proceed
21 in accordance with Part 2 of Article XII of the Code of Civil
22 Procedure, as amended. The giving of such notice within the
23 10 day period is a condition precedent to any judicial action
24 against the sheriff or coroner for wrongfully levying,
25 seizing or selling the property and any such person who fails
26 to give such notice within that time is barred from bringing
27 any judicial action against such sheriff or coroner for
28 injury or damages to or conversion of the property.
29 Section 35-80. Aircraft maintenance facility. Aircraft
30 maintenance facility means a facility operated by an
31 interstate carrier for hire that is used primarily for the
32 maintenance, rebuilding or repair of aircraft, aircraft parts
-815- LRB9000671KDdvA
1 and auxiliary equipment owned or leased by that carrier and
2 used by that carrier as rolling stock moving in interstate
3 commerce, and which: (1) will make an investment by the
4 interstate carrier for hire of $400,000,000 or more in an
5 enterprise zone; (2) will cause the creation of at least
6 5,000 full-time jobs in that enterprise zone; (3) is located
7 in a county with population not less than 150,000 and not
8 more than 200,000 and that contains 3 enterprise zones as of
9 December 31, 1990; (4) enters into a legally binding
10 agreement with the Department of Commerce and Community
11 Affairs to comply with clauses (1) and (2) of this paragraph
12 within a time period specified in the rules and regulations
13 promulgated pursuant to this Section; and (5) is certified by
14 the Department of Commerce and Community Affairs to be in
15 compliance with clauses (1), (2), (3) and (4) of this
16 Section. Any aircraft maintenance facility applying for the
17 exemption stated in this Section shall make application to
18 the Department of Commerce and Community Affairs in such form
19 and providing such information as may be prescribed by the
20 Department of Commerce and Community Affairs.
21 The Department of Commerce and Community Affairs shall
22 determine whether the facility meets the criteria prescribed
23 in this Section. If the Department of Commerce and Community
24 Affairs determines that the facility meets the criteria, it
25 shall issue a certificate of eligibility for exemption in the
26 form prescribed by the Department of Revenue to the business
27 enterprise operating the facility. The Department of
28 Commerce and Community Affairs shall act upon certification
29 request within 60 days after receipt of application, and
30 shall file with the Department of Revenue a copy of each
31 certificate of eligibility for exemption.
32 The Department of Commerce and Community Affairs shall
33 promulgate rules and regulations to carry out the provisions
34 of this Section, and to require that any business enterprise
-816- LRB9000671KDdvA
1 that is granted a tax exemption pay the exempted tax to the
2 Department of Revenue if the business enterprise fails to
3 comply with the terms and conditions of the certification,
4 and pay all penalties and interest on that exempted tax as
5 determined by the Department of Revenue.
6 The certificate of eligibility for exemption shall be
7 presented by the business enterprise to its supplier when
8 making the initial purchase of machinery and equipment for
9 which an exemption is granted by Section 30-35 or Section
10 30-40 of this Code, or both, together with a certification by
11 the business enterprise that the machinery and equipment is
12 exempt from taxation under Section 30-35 or 30-40 of this
13 Code. The exempt status, if any, of each subsequent purchase
14 shall be indicated on the face of the purchase order.
15 Section 35-85. High impact service facility. High
16 impact service facility means a facility used primarily for
17 the sorting, handling and redistribution of single item
18 non-fungible parcels received from agents or employees of the
19 handler or shipper for processing at a common location and
20 redistribution to other employees or agents for delivery to
21 an ultimate destination on an item-by-item basis, and which:
22 (1) will make an investment by a business enterprise of
23 $150,000,000 dollars or more; (2) will cause the creation of
24 at least 1,000 jobs in an enterprise zone established
25 pursuant to the Illinois Enterprise Zone Act; and (3) is
26 certified by the Department of Commerce and Community Affairs
27 as contractually obligated to meet the requirements specified
28 in divisions (1) and (2) of this paragraph within the time
29 period as specified by the certification. Any business
30 enterprise applying for the exemption stated in this Section
31 shall make application to the Department of Commerce and
32 Community Affairs in such form and providing such information
33 as may be prescribed by the Department of Commerce and
-817- LRB9000671KDdvA
1 Community Affairs.
2 The Department of Commerce and Community Affairs shall
3 determine whether the business enterprise meets the criteria
4 prescribed in this Section. If the Department of Commerce
5 and Community Affairs determines that such business
6 enterprise meets the criteria, it shall issue a certificate
7 of eligibility for exemption to the business enterprise in
8 such form as is prescribed by the Department of Revenue. The
9 Department of Commerce and Community Affairs shall act upon
10 such certification requests within 60 days after receipt of
11 the application, and shall file with the Department of
12 Revenue a copy of each certificate of eligibility for
13 exemption.
14 The Department of Commerce and Community Affairs shall
15 have the power to promulgate rules and regulations to carry
16 out the provisions of this Section and to require that any
17 business enterprise that is granted a tax exemption repay the
18 exempted tax if the business enterprise fails to comply with
19 the terms and conditions of the certification.
20 The certificate of eligibility for exemption shall be
21 presented by the business enterprise to its supplier when
22 making the initial purchase of machinery and equipment for
23 which an exemption is granted by Section 30-25 of this Code,
24 together with a certification by the business enterprise that
25 such machinery and equipment is exempt from taxation under
26 Section 30-25 of this Code and by indicating the exempt
27 status of each subsequent purchase on the face of the
28 purchase order.
29 The Department of Commerce and Community Affairs shall
30 determine the period during which such exemption from the
31 taxes imposed under this Code will remain in effect.
32 Section 35-90. Enterprise zones; building materials.
33 Each retailer whose place of business is within a county or
-818- LRB9000671KDdvA
1 municipality which has established an enterprise zone
2 pursuant to the Illinois Enterprise Zone Act and who makes a
3 sale of building materials to be incorporated into real
4 estate in such enterprise zone by remodeling, rehabilitation
5 or new construction, may deduct receipts from such sales when
6 calculating the taxes imposed by this Code. The deduction
7 allowed by this Section for the sale of building materials
8 may be limited, to the extent authorized by ordinance,
9 adopted after February 18, 1992, by the municipality or
10 county that created the enterprise zone. The corporate
11 authorities of any municipality or county that adopts an
12 ordinance or resolution imposing or changing any limitation
13 on the enterprise zone exemption for building materials shall
14 transmit to the Department of Revenue on or not later than 5
15 days after publication, as provided by law, a certified copy
16 of the ordinance or resolution imposing or changing those
17 limitations, whereupon the Department of Revenue shall
18 proceed to administer and enforce those limitations effective
19 the first day of the second calendar month next following
20 date of receipt by the Department of the certified ordinance
21 or resolution.
22 Section 40-5. Information confidential; exceptions. All
23 information received by the Department from returns filed
24 under this Code, or from any investigation conducted under
25 this Code, shall be confidential, except for official
26 purposes, and any person who divulges any such information in
27 any manner, except in accordance with a proper judicial order
28 or as otherwise provided by law, shall be guilty of a Class B
29 misdemeanor.
30 Nothing in this Code prevents the Director of Revenue
31 from publishing or making available to the public the names
32 and addresses of persons filing returns under this Code, or
33 reasonable statistics concerning the operation of the tax by
-819- LRB9000671KDdvA
1 grouping the contents of returns so the information in any
2 individual return is not disclosed.
3 Nothing in this Code prevents the Director of Revenue
4 from divulging to the United States Government or the
5 government of any other state, or any village that does not
6 levy any real property taxes for village operations and that
7 receives more than 60% of its general corporate revenue from
8 taxes under Articles 10, 15, 20, and 25 of this Code, or any
9 officer or agency thereof, for exclusively official purposes,
10 information received by the Department in administering this
11 Code, provided that such other governmental agency agrees to
12 divulge requested tax information to the Department.
13 The Department's furnishing of information derived from a
14 taxpayer's return or from an investigation conducted under
15 this Code to the surety on a taxpayer's bond that has been
16 furnished to the Department under this Code, either to
17 provide notice to such surety of its potential liability
18 under the bond or, in order to support the Department's
19 demand for payment from such surety under the bond, is an
20 official purpose within the meaning of this Section.
21 The furnishing upon request of information obtained by
22 the Department from returns filed under this Code or
23 investigations conducted under this Code to the Illinois
24 Liquor Control Commission for official use is deemed to be an
25 official purpose within the meaning of this Section.
26 Notice to a surety of potential liability shall not be
27 given unless the taxpayer has first been notified, not less
28 than 10 days prior thereto, of the Department's intent to so
29 notify the surety.
30 The furnishing upon request of the Auditor General, or
31 his authorized agents, for official use, of returns filed and
32 information related thereto under this Code is deemed to be
33 an official purpose within the meaning of this Section.
34 Where an appeal or a protest has been filed on behalf of
-820- LRB9000671KDdvA
1 a taxpayer, the furnishing upon request of the attorney for
2 the taxpayer of returns filed by the taxpayer and information
3 related thereto under this Code is deemed to be an official
4 purpose within the meaning of this Section.
5 The furnishing of financial information to a home rule
6 unit that has imposed a tax similar to that imposed by this
7 Code pursuant to its home rule powers, or to any village that
8 does not levy any real property taxes for village operations
9 and that receives more than 60% of its general corporate
10 revenue from taxes under Articles 10, 15, 20, and 25 of this
11 Code, upon request of the Chief Executive thereof, is an
12 official purpose within the meaning of this Section,
13 provided the home rule unit or village that does not levy any
14 real property taxes for village operations and that receives
15 more than 60% of its general corporate revenue from taxes
16 under Articles 10, 15, 20, and 25 of this Code agrees in
17 writing to the requirements of this Section.
18 For a village that does not levy any real property taxes
19 for village operations and that receives more than 60% of its
20 general corporate revenue from taxes under Articles 10, 15,
21 20, and 25 of this Code, the officers eligible to receive
22 information from the Department of Revenue under this Section
23 are the village manager and the chief financial officer of
24 the village.
25 Information so provided shall be subject to all
26 confidentiality provisions of this Section. The written
27 agreement shall provide for reciprocity, limitations on
28 access, disclosure, and procedures for requesting
29 information.
30 The Director may make available to any State agency,
31 including the Illinois Supreme Court, which licenses persons
32 to engage in any occupation, information that a person
33 licensed by such agency has failed to file returns under this
34 Code or pay the tax, penalty and interest shown therein, or
-821- LRB9000671KDdvA
1 has failed to pay any final assessment of tax, penalty or
2 interest due under this Code. The Director may also make
3 available to the Secretary of State information that a
4 limited liability company, which has filed articles of
5 organization with the Secretary of State, or corporation
6 which has been issued a certificate of incorporation by the
7 Secretary of State has failed to file returns under this Code
8 or pay the tax, penalty and interest shown therein, or has
9 failed to pay any final assessment of tax, penalty or
10 interest due under this Code. An assessment is final when all
11 proceedings in court for review of such assessment have
12 terminated or the time for the taking thereof has expired
13 without such proceedings being instituted.
14 The Director shall make available for public inspection
15 in the Department's principal office and for publication, at
16 cost, administrative decisions issued on or after January 1,
17 1995. These decisions are to be made available in a manner so
18 that the following taxpayer information is not disclosed:
19 (1) The names, addresses, and identification
20 numbers of the taxpayer, related entities, and employees.
21 (2) At the sole discretion of the Director, trade
22 secrets or other confidential information identified as
23 such by the taxpayer, no later than 30 days after receipt
24 of an administrative decision, by such means as the
25 Department shall provide by rule.
26 The Director shall determine the appropriate extent of
27 the deletions allowed in paragraph (2). In the event the
28 taxpayer does not submit deletions, the Director shall make
29 only the deletions specified in paragraph (1).
30 The Director shall make available for public inspection
31 and publication an administrative decision within 180 days
32 after the issuance of the administrative decision. The term
33 "administrative decision" has the same meaning as defined in
34 Section 3-101 of Article III of the Code of Civil Procedure.
-822- LRB9000671KDdvA
1 Costs collected under this Section shall be paid into the Tax
2 Compliance and Administration Fund.
3 Section 50-145. Examination and correction of return.
4 The provisions of this Section shall apply to the retailers'
5 occupation tax, the use tax, the service occupation tax, and
6 the service use tax, except that for purposes of the use tax
7 and the service occupation tax, the time limitation
8 provisions shall run from the date when the tax is due rather
9 than from the date when gross receipts are received, and for
10 purposes of the service use tax, the time limitations
11 provisions shall run from the date when gross receipts are
12 received. As soon as practicable after any return is filed,
13 the Department shall examine such return and shall, if
14 necessary, correct such return according to its best judgment
15 and information. If the correction of a return results in an
16 amount of tax that is understated on the taxpayer's return
17 due to a mathematical error, the Department shall notify the
18 taxpayer that the amount of tax in excess of that shown on
19 the return is due and has been assessed. The term
20 "mathematical error" means arithmetic errors or incorrect
21 computations on the return or supporting schedules. No such
22 notice of additional tax due shall be issued on and after
23 each July 1 and January 1 covering gross receipts received
24 during any month or period of time more than 3 years prior to
25 such July 1 and January 1, respectively. Such notice of
26 additional tax due shall not be considered a notice of tax
27 liability nor shall the taxpayer have any right of protest.
28 In the event that the return is corrected for any reason
29 other than a mathematical error, any return so corrected by
30 the Department shall be prima facie correct and shall be
31 prima facie evidence of the correctness of the amount of tax
32 due, as shown therein. In correcting transaction by
33 transaction reporting returns provided for in Sections 50-5
-823- LRB9000671KDdvA
1 through 50-140 of this Code, it shall be permissible for the
2 Department to show a single corrected return figure for any
3 given period of a calendar month instead of having to correct
4 each transaction by transaction return form individually and
5 having to show a corrected return figure for each of such
6 transaction by transaction return forms. In making a
7 correction of transaction by transaction, monthly or
8 quarterly returns covering a period of 6 months or more, it
9 shall be permissible for the Department to show a single
10 corrected return figure for any given 6-month period.
11 Instead of requiring the person filing such return to
12 file an amended return, the Department may simply notify him
13 of the correction or corrections it has made.
14 Proof of such correction by the Department may be made at
15 any hearing before the Department or in any legal proceeding
16 by a reproduced copy or computer print-out of the
17 Department's record relating thereto in the name of the
18 Department under the certificate of the Director of Revenue.
19 If reproduced copies of the Department's records are offered
20 as proof of such correction, the Director must certify that
21 those copies are true and exact copies of records on file
22 with the Department. If computer print-outs of the
23 Department's records are offered as proof of such correction,
24 the Director must certify that those computer print-outs are
25 true and exact representations of records properly entered
26 into standard electronic computing equipment, in the regular
27 course of the Department's business, at or reasonably near
28 the time of the occurrence of the facts recorded, from
29 trustworthy and reliable information. Such certified
30 reproduced copy or certified computer print-out shall without
31 further proof, be admitted into evidence before the
32 Department or in any legal proceeding and shall be prima
33 facie proof of the correctness of the amount of tax due, as
34 shown therein.
-824- LRB9000671KDdvA
1 If the tax computed upon the basis of the gross receipts
2 as fixed by the Department is greater than the amount of tax
3 due under the return or returns as filed, the Department
4 shall (or if the tax or any part thereof that is admitted to
5 be due by a return or returns, whether filed on time or not,
6 is not paid, the Department may) issue the taxpayer a notice
7 of tax liability for the amount of tax claimed by the
8 Department to be due, together with a penalty in an amount
9 determined in accordance with Section 3-3 of the Uniform
10 Penalty and Interest Act. Provided, that if the incorrectness
11 of any return or returns as determined by the Department is
12 due to negligence or fraud, the penalty shall be in an amount
13 determined in accordance with Section 3-5 or Section 3-6 of
14 the Uniform Penalty and Interest Act, as the case may be. If
15 the notice of tax liability is not based on a correction of
16 the taxpayer's return or returns, but is based on the
17 taxpayer's failure to pay all or a part of the tax admitted
18 by his return or returns (whether filed on time or not) to be
19 due, such notice of tax liability shall be prima facie
20 correct and shall be prima facie evidence of the correctness
21 of the amount of tax due, as shown therein.
22 Proof of such notice of tax liability by the Department
23 may be made at any hearing before the Department or in any
24 legal proceeding by a reproduced copy of the Department's
25 record relating thereto in the name of the Department under
26 the certificate of the Director of Revenue. Such reproduced
27 copy shall without further proof, be admitted into evidence
28 before the Department or in any legal proceeding and shall be
29 prima facie proof of the correctness of the amount of tax
30 due, as shown therein.
31 If the person filing any return dies or becomes a person
32 under legal disability at any time before the Department
33 issues its notice of tax liability, such notice shall be
34 issued to the administrator, executor or other legal
-825- LRB9000671KDdvA
1 representative, as such, of such person.
2 Except in case of a fraudulent return, or in the case of
3 an amended return (where a notice of tax liability may be
4 issued on or after each January 1 and July 1 for an amended
5 return filed not more than 3 years prior to such January 1 or
6 July 1, respectively), no notice of tax liability shall be
7 issued on and after each January 1 and July 1 covering gross
8 receipts received during any month or period of time more
9 than 3 years prior to such January 1 and July 1,
10 respectively. If, before the expiration of the time
11 prescribed in this Section for the issuance of a notice of
12 tax liability, both the Department and the taxpayer have
13 consented in writing to its issuance after such time, such
14 notice may be issued at any time prior to the expiration of
15 the period agreed upon. The period so agreed upon may be
16 extended by subsequent agreements in writing made before the
17 expiration of the period previously agreed upon. The
18 foregoing limitations upon the issuance of a notice of tax
19 liability shall not apply to the issuance of a notice of tax
20 liability with respect to any period of time prior thereto in
21 cases where the Department has, within the period of
22 limitation then provided, notified the person making the
23 return of a notice of tax liability even though such return,
24 with which the tax that was shown by such return to be due
25 was paid when the return was filed, had not been corrected by
26 the Department in the manner required herein prior to the
27 issuance of such notice, but in no case shall the amount of
28 any such notice of tax liability for any period otherwise
29 barred by this Code exceed for such period the amount shown
30 in the notice of tax liability theretofore issued.
31 If, when a tax or penalty under this Code becomes due and
32 payable, the person alleged to be liable therefor is out of
33 the State, the notice of tax liability may be issued within
34 the times herein limited after his coming into or return to
-826- LRB9000671KDdvA
1 the State; and if, after the tax or penalty under this Code
2 becomes due and payable, the person alleged to be liable
3 therefor departs from and remains out of the State, the time
4 of his or her absence is no part of the time limited for the
5 issuance of the notice of tax liability; but the foregoing
6 provisions concerning absence from the State shall not apply
7 to any case in which, at the time when a tax or penalty
8 becomes due under this Code, the person allegedly liable
9 therefor is not a resident of this State.
10 The time limitation period on the Department's right to
11 issue a notice of tax liability shall not run during any
12 period of time in which the order of any court has the effect
13 of enjoining or restraining the Department from issuing the
14 notice of tax liability.
15 If such person or legal representative shall within 60
16 days after such notice of tax liability file a protest to
17 said notice of tax liability and request a hearing thereon,
18 the Department shall give notice to such person or legal
19 representative of the time and place fixed for such hearing
20 and shall hold a hearing in conformity with the provisions of
21 this Code, and pursuant thereto shall issue to such person or
22 legal representative a final assessment for the amount found
23 to be due as a result of such hearing.
24 If a protest to the notice of tax liability and a request
25 for a hearing thereon is not filed within 60 days after such
26 notice, such notice of tax liability shall become final
27 without the necessity of a final assessment being issued and
28 shall be deemed to be a final assessment.
29 After the issuance of a final assessment, or a notice of
30 tax liability which becomes final without the necessity of
31 actually issuing a final assessment as hereinbefore provided,
32 the Department, at any time before such assessment is reduced
33 to judgment, may (subject to rules of the Department) grant a
34 rehearing (or grant departmental review and hold an original
-827- LRB9000671KDdvA
1 hearing if no previous hearing in the matter has been held)
2 upon the application of the person aggrieved. Pursuant to
3 such hearing or rehearing, the Department shall issue a
4 revised final assessment to such person or his legal
5 representative for the amount found to be due as a result of
6 such hearing or rehearing.
7 Section 50-150. Failure to make return.
8 The provisions of this Section shall apply to the
9 retailers' occupation tax, the use tax, the service
10 occupation tax, and the service use tax, except that for
11 purposes of the use tax, the service occupation tax, and the
12 service use tax, the time limitation provisions on the
13 issuance of notices of tax liability shall run from the date
14 when the tax is due rather than from the date when gross
15 receipts are received, and for purposes of the use tax and
16 the service use tax, in the case of a failure to file a
17 return required by this Code, no notice of tax liability
18 shall be issued on and after each July 1 and January 1
19 covering tax due with that return during any month or period
20 more than 6 years before that July 1 or January 1,
21 respectively. In case any person engaged in the business of
22 selling tangible personal property at retail fails to file a
23 return when and as herein required, but thereafter, prior to
24 the Department's issuance of a notice of tax liability under
25 this Section, files a return and pays the tax, he shall also
26 pay a penalty in an amount determined in accordance with
27 Section 3-3 of the Uniform Penalty and Interest Act.
28 In case any person engaged in the business of selling
29 tangible personal property at retail files the return at the
30 time required by this Code but fails to pay the tax, or any
31 part thereof, when due, a penalty in an amount determined in
32 accordance with Section 3-3 of the Uniform Penalty and
33 Interest Act shall be added thereto.
-828- LRB9000671KDdvA
1 In case any person engaged in the business of selling
2 tangible personal property at retail fails to file a return
3 when and as herein required, but thereafter, prior to the
4 Department's issuance of a notice of tax liability under this
5 Section, files a return but fails to pay the entire tax, a
6 penalty in an amount determined in accordance with Section
7 3-3 of the Uniform Penalty and Interest Act shall be added
8 thereto.
9 In case any person engaged in the business of selling
10 tangible personal property at retail fails to file a return,
11 the Department shall determine the amount of tax due from him
12 according to its best judgment and information, which amount
13 so fixed by the Department shall be prima facie correct and
14 shall be prima facie evidence of the correctness of the
15 amount of tax due, as shown in such determination. In making
16 any such determination of tax due, it shall be permissible
17 for the Department to show a figure that represents the tax
18 due for any given period of 6 months instead of showing the
19 amount of tax due for each month separately. Proof of such
20 determination by the Department may be made at any hearing
21 before the Department or in any legal proceeding by a
22 reproduced copy or computer print-out of the Department's
23 record relating thereto in the name of the Department under
24 the certificate of the Director of Revenue. If reproduced
25 copies of the Department's records are offered as proof of
26 such determination, the Director must certify that those
27 copies are true and exact copies of records on file with the
28 Department. If computer print-outs of the Department's
29 records are offered as proof of such determination, the
30 Director must certify that those computer print-outs are true
31 and exact representations of records properly entered into
32 standard electronic computing equipment, in the regular
33 course of the Department's business, at or reasonably near
34 the time of the occurrence of the facts recorded, from
-829- LRB9000671KDdvA
1 trustworthy and reliable information. Such certified
2 reproduced copy or certified computer print-out shall,
3 without further proof, be admitted into evidence before the
4 Department or in any legal proceeding and shall be prima
5 facie proof of the correctness of the amount of tax due, as
6 shown therein. The Department shall issue the taxpayer a
7 notice of tax liability for the amount of tax claimed by the
8 Department to be due, together with a penalty of 30% thereof.
9 However, where the failure to file any tax return
10 required under this Code on the date prescribed therefor
11 (including any extensions thereof), is shown to be
12 unintentional and nonfraudulent and has not occurred in the 2
13 years immediately preceding the failure to file on the
14 prescribed date or is due to other reasonable cause the
15 penalties imposed by this Code shall not apply.
16 If such person or the legal representative of such person
17 files, within 60 days after such notice, a protest to such
18 notice of tax liability and requests a hearing thereon, the
19 Department shall give notice to such person or the legal
20 representative of such person of the time and place fixed for
21 such hearing, and shall hold a hearing in conformity with the
22 provisions of this Code, and pursuant thereto shall issue a
23 final assessment to such person or to the legal
24 representative of such person for the amount found to be due
25 as a result of such hearing.
26 If a protest to the notice of tax liability and a request
27 for a hearing thereon is not filed within 60 days after such
28 notice, such notice of tax liability shall become final
29 without the necessity of a final assessment being issued and
30 shall be deemed to be a final assessment.
31 After the issuance of a final assessment, or a notice of
32 tax liability which becomes final without the necessity of
33 actually issuing a final assessment as hereinbefore provided,
34 the Department, at any time before such assessment is reduced
-830- LRB9000671KDdvA
1 to judgment, may (subject to rules of the Department) grant a
2 rehearing (or grant departmental review and hold an original
3 hearing if no previous hearing in the matter has been held)
4 upon the application of the person aggrieved. Pursuant to
5 such hearing or rehearing, the Department shall issue a
6 revised final assessment to such person or his legal
7 representative for the amount found to be due as a result of
8 such hearing or rehearing.
9 Except in case of failure to file a return, or with the
10 consent of the person to whom the notice of tax liability is
11 to be issued, no notice of tax liability shall be issued on
12 and after each July 1 and January 1 covering gross receipts
13 received during any month or period of time more than 3 years
14 prior to such July 1 and January 1, respectively, except that
15 if a return is not filed at the required time, a notice of
16 tax liability may be issued not later than 3 years after the
17 time the return is filed. The foregoing limitations upon the
18 issuance of a notice of tax liability shall not apply to the
19 issuance of any such notice with respect to any period of
20 time prior thereto in cases where the Department has, within
21 the period of limitation then provided, notified a person of
22 the amount of tax computed even though the Department had not
23 determined the amount of tax due from such person in the
24 manner required herein prior to the issuance of such notice,
25 but in no case shall the amount of any such notice of tax
26 liability for any period otherwise barred by this Code exceed
27 for such period the amount shown in the notice theretofore
28 issued.
29 If, when a tax or penalty under this Code becomes due and
30 payable, the person alleged to be liable therefor is out of
31 the State, the notice of tax liability may be issued within
32 the times herein limited after his or her coming into or
33 return to the State; and if, after the tax or penalty under
34 this Code becomes due and payable, the person alleged to be
-831- LRB9000671KDdvA
1 liable therefor departs from and remains out of the State,
2 the time of his or her absence is no part of the time limited
3 for the issuance of the notice of tax liability; but the
4 foregoing provisions concerning absence from the State shall
5 not apply to any case in which, at the time when a tax or
6 penalty becomes due under this Code, the person allegedly
7 liable therefor is not a resident of this State.
8 The time limitation period on the Department's right to
9 issue a notice of tax liability shall not run during any
10 period of time in which the order of any court has the effect
11 of enjoining or restraining the Department from issuing the
12 notice of tax liability.
13 In case of failure to pay the tax, or any portion
14 thereof, or any penalty provided for in this Code, or
15 interest, when due, the Department may bring suit to recover
16 the amount of such tax, or portion thereof, or penalty or
17 interest; or, if the taxpayer has died or become a person
18 under legal disability, may file a claim therefor against his
19 estate; provided that no such suit with respect to any tax,
20 or portion thereof, or penalty, or interest shall be
21 instituted more than 2 years after the date any proceedings
22 in court for review thereof have terminated or the time for
23 the taking thereof has expired without such proceedings being
24 instituted, except with the consent of the person from whom
25 such tax or penalty or interest is due; nor, except with such
26 consent, shall such suit be instituted more than 2 years
27 after the date any return is filed with the Department in
28 cases where the return constitutes the basis for the suit for
29 unpaid tax, or portion thereof, or penalty provided for in
30 this Code, or interest: provided that the time limitation
31 period on the Department's right to bring any such suit shall
32 not run during any period of time in which the order of any
33 court has the effect of enjoining or restraining the
34 Department from bringing such suit.
-832- LRB9000671KDdvA
1 After the expiration of the period within which the
2 person assessed may file an action for judicial review under
3 the Administrative Review Law without such an action being
4 filed, a certified copy of the final assessment or revised
5 final assessment of the Department may be filed with the
6 Circuit Court of the county in which the taxpayer has his
7 principal place of business, or of Sangamon County in those
8 cases in which the taxpayer does not have his principal place
9 of business in this State. The certified copy of the final
10 assessment or revised final assessment shall be accompanied
11 by a certification which recites facts that are sufficient to
12 show that the Department complied with the jurisdictional
13 requirements of the Code in arriving at its final assessment
14 or its revised final assessment and that the taxpayer had his
15 opportunity for an administrative hearing and for judicial
16 review, whether he availed himself or herself of either or
17 both of these opportunities or not. If the court is satisfied
18 that the Department complied with the jurisdictional
19 requirements of the Code in arriving at its final assessment
20 or its revised final assessment and that the taxpayer had his
21 opportunity for an administrative hearing and for judicial
22 review, whether he availed himself of either or both of these
23 opportunities or not, the court shall render judgment in
24 favor of the Department and against the taxpayer for the
25 amount shown to be due by the final assessment or the revised
26 final assessment, plus any interest which may be due, and
27 such judgment shall be entered in the judgment docket of the
28 court. Such judgment shall bear the rate of interest as set
29 by the Uniform Penalty and Interest Act, but otherwise shall
30 have the same effect as other judgments. The judgment may be
31 enforced, and all laws applicable to sales for the
32 enforcement of a judgment shall be applicable to sales made
33 under such judgments. The Department shall file the certified
34 copy of its assessment, as herein provided, with the Circuit
-833- LRB9000671KDdvA
1 Court within 2 years after such assessment becomes final
2 except when the taxpayer consents in writing to an extension
3 of such filing period, and except that the time limitation
4 period on the Department's right to file the certified copy
5 of its assessment with the Circuit Court shall not run during
6 any period of time in which the order of any court has the
7 effect of enjoining or restraining the Department from filing
8 such certified copy of its assessment with the Circuit Court.
9 If, when the cause of action for a proceeding in court
10 accrues against a person, he or she is out of the State, the
11 action may be commenced within the times herein limited,
12 after his or her coming into or return to the State; and if,
13 after the cause of action accrues, he or she departs from and
14 remains out of the State, the time of his or her absence is
15 no part of the time limited for the commencement of the
16 action; but the foregoing provisions concerning absence from
17 the State shall not apply to any case in which, at the time
18 the cause of action accrues, the party against whom the cause
19 of action accrues is not a resident of this State. The time
20 within which a court action is to be commenced by the
21 Department hereunder shall not run from the date the taxpayer
22 files a petition in bankruptcy under the Federal Bankruptcy
23 Act until 30 days after notice of termination or expiration
24 of the automatic stay imposed by the Federal Bankruptcy Act.
25 No claim shall be filed against the estate of any
26 deceased person or any person under legal disability for any
27 tax or penalty or part of either, or interest, except in the
28 manner prescribed and within the time limited by the Probate
29 Act of 1975.
30 The collection of tax or penalty or interest by any means
31 provided for herein shall not be a bar to any prosecution
32 under this Code.
33 In addition to any penalty provided for in this Code, any
34 amount of tax which is not paid when due shall bear interest
-834- LRB9000671KDdvA
1 at the rate and in the manner specified in Sections 3-2 and
2 3-9 of the Uniform Penalty and Interest Act from the date
3 when such tax becomes past due until such tax is paid or a
4 judgment therefor is obtained by the Department. If the time
5 for making or completing an audit of a taxpayer's books and
6 records is extended with the taxpayer's consent, at the
7 request of and for the convenience of the Department, beyond
8 the date on which the statute of limitations upon the
9 issuance of a notice of tax liability by the Department
10 otherwise would run, no interest shall accrue during the
11 period of such extension or until a Notice of Tax Liability
12 is issued, whichever occurs first.
13 In addition to any other remedy provided by this Code,
14 and regardless of whether the Department is making or intends
15 to make use of such other remedy, where a corporation or
16 limited liability company registered under this Code violates
17 the provisions of this Code or of any rule or regulation
18 promulgated thereunder, the Department may give notice to the
19 Attorney General of the identity of such a corporation or
20 limited liability company and of the violations committed by
21 such a corporation or limited liability company, for such
22 action as is not already provided for by this Code and as the
23 Attorney General may deem appropriate.
24 If the Department determines that an amount of tax or
25 penalty or interest was incorrectly assessed, whether as the
26 result of a mistake of fact or an error of law, the
27 Department shall waive the amount of tax or penalty or
28 interest that accrued due to the incorrect assessment.
29 Section 50-155. Requirement to file return.
30 (a) For purposes of the use tax, except as to motor
31 vehicles and aircraft, when tangible personal property is
32 purchased from a retailer for use in this State by a
33 purchaser who did not pay the tax imposed by Article 15 to
-835- LRB9000671KDdvA
1 the retailer, and who does not file returns with the
2 Department as a retailer under Sections 50-5 through 50-140
3 of this Code, such purchaser (by the last day of the month
4 following the calendar month in which such purchaser makes
5 any payment upon the selling price of such property) shall,
6 except as provided in this Section, file a return with the
7 Department and pay the tax upon that portion of the selling
8 price so paid by the purchaser during the preceding calendar
9 month. When tangible personal property is purchased by a
10 lessor, under a lease for one year or longer, executed or in
11 effect at the time of purchase to an interstate carrier for
12 hire, who did not pay the tax imposed by Article 15 to the
13 retailer, such lessor (by the last day of the month following
14 the calendar month in which such property reverts to the use
15 of such lessor) shall file a return with the Department and
16 pay the tax upon the fair market value of such property on
17 the date of such reversion. Such return shall be filed on a
18 form prescribed by the Department and shall contain such
19 information as the Department may reasonably require. Such
20 return and payment from the purchaser shall be submitted to
21 the Department sooner than the last day of the month after
22 the month in which the purchase is made to the extent that
23 that may be necessary in order to secure the title to a motor
24 vehicle or the certificate of registration for an aircraft.
25 However, if the purchaser's annual use tax liability does not
26 exceed $600, the purchaser may file the return on an annual
27 basis on or before April 15th of the year following the year
28 use tax liability was incurred.
29 In addition with respect to motor vehicles and aircraft,
30 a purchaser of such tangible personal property for use in
31 this State, who purchases such tangible personal property
32 from an out-of-state retailer, shall file with the
33 Department, upon a form to be prescribed and supplied by the
34 Department, a return for each such item of tangible personal
-836- LRB9000671KDdvA
1 property purchased. Such return in the case of motor
2 vehicles and aircraft must show the name and address of the
3 seller, the name and address of purchaser, the amount of the
4 selling price including the amount allowed by the retailer
5 for traded in property, if any; the amount allowed by the
6 retailer for the traded-in tangible personal property, if
7 any, to the extent to which Section 5-120 of this Code allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the purchaser
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance if that is claimed to be the fact); the
15 place and date of the sale, a sufficient identification of
16 the property sold, and such other information as the
17 Department may reasonably require.
18 Such return shall be filed not later than 30 days after
19 such motor vehicle or aircraft is brought into this State for
20 use.
21 The return and tax remittance or proof of exemption from
22 the tax that is imposed by Article 15 may be transmitted to
23 the Department by way of the State agency with which, or
24 State officer with whom, the tangible personal property must
25 be titled or registered (if titling or registration is
26 required) if the Department and such agency or State officer
27 determine that this procedure will expedite the processing of
28 applications for title or registration.
29 With each such return, the purchaser shall remit the
30 proper amount of tax due (or shall submit satisfactory
31 evidence that the sale is not taxable if that is the case),
32 to the Department or its agents, whereupon the Department
33 shall issue, in the purchaser's name, a tax receipt (or a
34 certificate of exemption if the Department is satisfied that
-837- LRB9000671KDdvA
1 the particular sale is tax exempt) which such purchaser may
2 submit to the agency with which, or State officer with whom,
3 he must title or register the tangible personal property that
4 is involved (if titling or registration is required) in
5 support of such purchaser's application for an Illinois
6 certificate or other evidence of title or registration to
7 such tangible personal property.
8 (b) For purposes of the service use tax, where property
9 is acquired as an incident to the purchase of a service from
10 a serviceman for use in this State by a purchaser who did not
11 pay the tax herein imposed to the serviceman, and who does
12 not file returns with the Department as a serviceman under
13 Sections 50-5 through 50-140 of this Code, such purchaser (by
14 the last day of the month following the calendar month in
15 which such purchaser makes any payment upon the selling price
16 of such property) shall, except as hereinafter provided in
17 this Section, file a return with the Department and pay the
18 tax upon that portion of the selling price so paid by the
19 purchaser during the preceding calendar month. Such return
20 shall be filed on a form prescribed by the Department and
21 shall contain such information as the Department may
22 reasonably require.
23 (c) For purposes of the use tax and the service use tax,
24 when a purchaser pays a tax imposed by Article 15 or 25
25 directly to the Department, the Department (upon request
26 therefor from such purchaser) shall issue an appropriate
27 receipt to such purchaser showing that he has paid such tax
28 to the Department. Such receipt shall be sufficient to
29 relieve the purchaser from further liability for the tax to
30 which such receipt may refer.
31 (d) For purposes of the use tax and the service use tax,
32 a user who is liable to pay use tax or service use tax
33 directly to the Department only occasionally and not on a
34 frequently recurring basis, and who is not required to file
-838- LRB9000671KDdvA
1 returns with the Department as a retailer or serviceman under
2 Sections 50-5 through 50-140 of this Code need not register
3 with the Department. However, if such a user has a frequently
4 recurring direct use tax or service use tax liability to pay
5 to the Department, such user shall be required to register
6 with the Department on forms prescribed by the Department and
7 to obtain and display a certificate of registration from the
8 Department. In that event, all of the provisions of Sections
9 50-5 through 50-140 of this Code concerning the filing of
10 regular monthly, quarterly or annual tax returns and all of
11 the provisions of Sections 35-5 through 35-45 concerning the
12 requirements for registrants to post bond or other security
13 with the Department, as the provisions of such sections now
14 exist or may hereafter be amended, shall apply to such users
15 to the same extent as if such provisions were included
16 herein.
17 Section 60-15. Foreign retailers; revocation of permit
18 to collect tax. For purposes of the use tax and service use
19 tax, whenever any retailer or serviceman not maintaining a
20 place of business in this State, to whom a permit to collect
21 the taxes imposed by Article 15 and Article 25 has been
22 issued pursuant to Section 60-10, fails to comply with any of
23 the provisions hereof or any orders, rules or regulations of
24 the Department prescribed and adopted hereunder, or when the
25 Department considers the security furnished by such retailer
26 or serviceman to be inadequate or considers that the tax can
27 be collected more effectively from persons using such
28 property in this State, the Department may, upon notice and
29 hearing as herein provided, by order revoke the permit issued
30 to such retailer or serviceman. No order authorized by this
31 Section shall be made until the retailer or serviceman is
32 given an opportunity to be heard and to show cause why such
33 order shall not be made, and he shall be given at least 7
-839- LRB9000671KDdvA
1 days' notice of the time, place and purpose of such hearing.
2 The Department shall have the power in its discretion to
3 issue a new permit pursuant to Section 60-10 after such
4 revocation.
5 Section 65-5. Tax lien. The Department shall have a lien
6 for the taxes herein imposed or any portion thereof, or for
7 any penalty provided for in this Code, or for any amount of
8 interest which may be due as provided for in Section 50-150
9 of this Code, upon all the real and personal property of any
10 person to whom a final assessment or revised final assessment
11 has been issued as provided in this Code, or whenever a
12 return is filed without payment of the tax or penalty shown
13 therein to be due, including all such property of such
14 persons acquired after receipt of such assessment or filing
15 of such return.
16 However, where the lien arises because of the issuance of
17 a final assessment or revised final assessment by the
18 Department, such lien shall not attach and the notice
19 hereinafter referred to in this Section shall not be filed
20 until all proceedings in court for review of such final
21 assessment or revised final assessment have terminated or the
22 time for the taking thereof has expired without such
23 proceedings being instituted.
24 Upon the granting of a rehearing or departmental review
25 pursuant to Section 50-145 or Section 50-150 of this Code
26 after a lien has attached, such lien shall remain in full
27 force except to the extent to which the final assessment may
28 be reduced by a revised final assessment following such
29 rehearing or review.
30 The lien created by the issuance of a final assessment
31 shall terminate unless a notice of lien is filed, as provided
32 in Section 65-10, within 3 years from the date all
33 proceedings in court for the review of such final assessment
-840- LRB9000671KDdvA
1 have terminated or the time for the taking thereof has
2 expired without such proceedings being instituted, or (in the
3 case of a revised final assessment issued pursuant to a
4 rehearing or departmental review) within 3 years from the
5 date all proceedings in court for the review of such revised
6 final assessment have terminated or the time for the taking
7 thereof has expired without such proceedings being
8 instituted; and where the lien results from the filing of a
9 return without payment of the tax or penalty shown therein to
10 be due, the lien shall terminate unless a notice of lien is
11 filed, as provided in Section 65-10 hereof, within 3 years
12 from the date when such return is filed with the Department:
13 provided that the time limitation period on the Department's
14 right to file a notice of lien shall not run during any
15 period of time in which the order of any court has the effect
16 of enjoining or restraining the Department from filing such
17 notice of lien.
18 If the Department finds that a taxpayer is about to
19 depart from the State, or to conceal himself or his property,
20 or to do any other act tending to prejudice or to render
21 wholly or partly ineffectual proceedings to collect such tax
22 unless such proceedings are brought without delay, or if the
23 Department finds that the collection of the amount due from
24 any taxpayer will be jeopardized by delay, the Department
25 shall give the taxpayer notice of such findings and shall
26 make demand for immediate return and payment of such tax,
27 whereupon such tax shall become immediately due and payable.
28 If the taxpayer, within 5 days after such notice (or within
29 such extension of time as the Department may grant), does not
30 comply with such notice or show to the Department that the
31 findings in such notice are erroneous, the Department may
32 file a notice of jeopardy assessment lien in the office of
33 the recorder of the county in which any property of the
34 taxpayer may be located and shall notify the taxpayer of such
-841- LRB9000671KDdvA
1 filing. Such jeopardy assessment lien shall have the same
2 scope and effect as the statutory lien hereinbefore provided
3 for in this Section.
4 If the taxpayer believes that he does not owe some or all
5 of the tax for which the jeopardy assessment lien against him
6 has been filed, or that no jeopardy to the revenue in fact
7 exists, he may protest within 20 days after being notified by
8 the Department of the filing of such jeopardy assessment lien
9 and request a hearing, whereupon the Department shall hold a
10 hearing in conformity with the provisions of this Code and,
11 pursuant thereto, shall notify the taxpayer of its findings
12 as to whether or not such jeopardy assessment lien will be
13 released. If not, and if the taxpayer is aggrieved by this
14 decision, he may file an action for judicial review of such
15 final determination of the Department in accordance with
16 Section 77-5 of this Code and the Administrative Review Law.
17 If, pursuant to such hearing (or after an independent
18 determination of the facts by the Department without a
19 hearing), the Department determines that some or all of the
20 tax covered by the jeopardy assessment lien is not owed by
21 the taxpayer, or that no jeopardy to the revenue exists, or
22 if on judicial review the final judgment of the court is that
23 the taxpayer does not owe some or all of the tax covered by
24 the jeopardy assessment lien against him, or that no jeopardy
25 to the revenue exists, the Department shall release its
26 jeopardy assessment lien to the extent of such finding of
27 nonliability for the tax, or to the extent of such finding of
28 no jeopardy to the revenue.
29 The Department shall also release its jeopardy assessment
30 lien against the taxpayer whenever the tax and penalty
31 covered by such lien, plus any interest which may be due, are
32 paid.
33 Nothing in this Section shall be construed to give the
34 Department a preference over the rights of any bona fide
-842- LRB9000671KDdvA
1 purchaser, holder of a security interest, mechanics
2 lienholder, mortgagee, or judgment lien creditor arising
3 prior to the filing of a regular notice of lien or a notice
4 of jeopardy assessment lien in the office of the recorder in
5 the county in which the property subject to the lien is
6 located: provided, however, that the word "bona fide", as
7 used in this Section shall not include any mortgage of real
8 or personal property or any other credit transaction that
9 results in the mortgagee or the holder of the security acting
10 as trustee for unsecured creditors of the taxpayer mentioned
11 in the notice of lien who executed such chattel or real
12 property mortgage or the document evidencing such credit
13 transaction. Such lien shall be inferior to the lien of
14 general taxes, special assessments and special taxes
15 heretofore or hereafter levied by any political subdivision
16 of this State.
17 In case title to land to be affected by the notice of
18 lien or notice of jeopardy assessment lien is registered
19 under the provisions of the Registered Titles (Torrens) Act,
20 such notice shall be filed in the office of the Registrar of
21 Titles of the county within which the property subject to the
22 lien is situated and shall be entered upon the register of
23 titles as a memorial or charge upon each folium of the
24 register of titles affected by such notice, and the
25 Department shall not have a preference over the rights of any
26 bona fide purchaser, mortgagee, judgment creditor or other
27 lien holder arising prior to the registration of such notice:
28 Provided, however, that the word "bona fide" shall not
29 include any mortgage of real or personal property or any
30 other credit transaction that results in the mortgagee or the
31 holder of the security acting as trustee for unsecured
32 creditors of the taxpayer mentioned in the notice of lien who
33 executed such chattel or real property mortgage or the
34 document evidencing such credit transaction.
-843- LRB9000671KDdvA
1 Such regular lien or jeopardy assessment lien shall not
2 be effective against any purchaser with respect to any item
3 in a retailer's stock in trade purchased from the retailer in
4 the usual course of such retailer's business.
5 Section 65-10. Records of State tax liens. The recorder
6 of each county shall procure a file labeled "State Tax Lien
7 Notices" and an index book labeled "State Tax Lien Index".
8 When notice of any lien or jeopardy assessment lien is
9 presented to him for filing, he shall file it in numerical
10 order in the file and shall enter it alphabetically in the
11 index. The entry shall show the name and last known business
12 address of the person named in the notice, the serial number
13 of the notice, the date and hour of filing, whether it is a
14 regular lien or a jeopardy assessment lien, and the amount of
15 tax and penalty due and unpaid, plus the amount of interest
16 due under Section 50-150 of this Code at the time when the
17 notice of lien or jeopardy assessment lien is filed.
18 No recorder or registrar of titles of any county shall
19 require that the Department pay any costs or fees in
20 connection with recordation of any notice or other document
21 filed by the Department under this Code at the time such
22 notice or other document is presented for recordation. The
23 recorder or registrar of each county, in order to receive
24 payment for fees or costs incurred by the Department, shall
25 present the Department with monthly statements indicating the
26 amount of fees and costs incurred by the Department and for
27 which no payment has been received.
28 A notice of lien may be filed after the issuance of a
29 revised final assessment pursuant to a rehearing or
30 departmental review under Section 50-145 or Section 50-150 of
31 this Code.
32 When the lien obtained pursuant to this Code has been
33 satisfied, the Department shall issue a release to the
-844- LRB9000671KDdvA
1 person, or his agent, against whom the lien was obtained and
2 such release shall contain in legible letters a statement as
3 follows:
4 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
5 BE FILED WITH THE RECORDER OR THE REGISTRAR
6 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
7 When a certificate of complete or partial release of lien
8 issued by the Department is presented for filing in the
9 office of the recorder or Registrar of Titles where a notice
10 of lien or notice of jeopardy assessment lien was filed, the
11 recorder, in the case of nonregistered property, shall
12 permanently attach the certificate of release to the notice
13 of lien or notice of jeopardy assessment lien and shall enter
14 the certificate of release and the date in the "State Tax
15 Lien Index" on the line where the notice of lien or notice of
16 jeopardy assessment lien is entered.
17 In the case of registered property, the Registrar of
18 Titles shall file and enter upon each folium of the register
19 of titles affected thereby a memorial of the certificate of
20 release which memorial when so entered shall act as a release
21 pro tanto of any memorial of such notice of lien or notice of
22 jeopardy assessment lien previously filed and registered.
23 Section 65-15. Tax liens; certificate of complete or
24 partial release. The Department shall issue a certificate of
25 complete or partial release of the lien:
26 (a) to the extent that the fair market value of any
27 property subject to the lien exceeds the amount of the lien
28 plus the amount of all prior liens upon such property;
29 (b) to the extent that such lien shall become
30 unenforceable;
31 (c) to the extent that the amount of such lien is paid
32 by the retailer whose property is subject to such lien,
33 together with any interest which may become due under Section
-845- LRB9000671KDdvA
1 50-150 of this Code between the date when the notice of lien
2 is filed and the date when the amount of such lien is paid;
3 (d) to the extent that there is furnished to the
4 Department on a form to be approved and with a surety or
5 sureties satisfactory to the Department a bond that is
6 conditioned upon the payment of the amount of such lien,
7 together with any interest which may become due under Section
8 50-150 of this Code after the notice of lien is filed, but
9 before the amount thereof is fully paid;
10 (e) to the extent and under the circumstances specified
11 in Section 65-5 of this Code in the case of jeopardy
12 assessment liens;
13 (f) to the extent to which an assessment is reduced
14 pursuant to a rehearing or departmental review under Section
15 50-145 or Section 50-150 of this Code.
16 A certificate of complete or partial release of any lien
17 shall be held conclusive that the lien upon the property
18 covered by the certificate is extinguished to the extent
19 indicated by such certificate.
20 Section 65-20. Tax liens on realty; enforcement. In
21 addition to any other remedy provided for by the laws of this
22 State, and provided that no hearing or proceedings for review
23 provided by this Code shall be pending, and the time for the
24 taking thereof shall have expired, the Department may
25 foreclose in the circuit court any lien on real property for
26 any tax or penalty imposed by this Code to the same extent
27 and in the same manner as in the enforcement of other liens.
28 Provided that such proceedings to foreclose shall not be
29 instituted more than 20 years after the filing of the notice
30 of lien under the provisions of Section 65-10, except that
31 the time limitation period on the Department's right to
32 commence any such foreclosure proceeding shall not run during
33 any period of time in which a court order has the effect of
-846- LRB9000671KDdvA
1 enjoining or restraining the Department from commencing such
2 foreclosure proceeding. The process, practice and procedure
3 for such foreclosure shall be the same as provided in the
4 Civil Practice Law, as amended. The provisions of this
5 amendatory Act of 1984 shall apply to any lien which has not
6 expired before September 13, 1984.
7 Section 65-25. Demand for payment of tax. In addition to
8 any other remedy provided for by the laws of this State, if
9 the taxes imposed by this Code are not paid within the time
10 required by this Code, the Department, or some person
11 designated by it, may cause a demand to be made on the
12 taxpayer for the payment of the tax. If the tax remains
13 unpaid for 10 days after demand has been made and no
14 proceedings have been taken for review, the Department may
15 issue a warrant directed to the sheriff of any county of the
16 State or to any State officer authorized to serve process,
17 commanding the sheriff or other officer to levy upon property
18 and rights to property (whether real or personal, tangible or
19 intangible) of the taxpayer, without exemption, found within
20 his or her jurisdiction, for the payment of the amount of
21 unpaid tax with the added penalties, interest and the cost of
22 executing the warrant. The term "levy" includes the power of
23 distraint and seizure by any means. In any case in which the
24 warrant to levy has been issued, the sheriff or other person
25 to whom the warrant was directed may seize and sell such
26 property or rights to property. Such warrant shall be
27 returned to the Department together with the money collected
28 by virtue of the warrant within the time specified in the
29 warrant, which may not be less than 20 nor more than 90 days
30 from the date of the warrant. The sheriff or other officer to
31 whom such warrant is directed shall proceed in the same
32 manner as is prescribed by law for proceeding against
33 property to enforce judgments which are entered by a circuit
-847- LRB9000671KDdvA
1 court of this State, and is entitled to the same fees for his
2 or her services in executing the warrant, to be collected in
3 the same manner. The Department, or some officer, employee or
4 agent designated by it, may bid for and purchase any such
5 property sold.
6 No proceedings for a levy under this Section may be
7 commenced more than 20 years after the latest date for filing
8 of the notice of lien under Section 65-10 of this Code,
9 without regard to whether such notice was actually filed.
10 Any officer or employee of the Department designated in
11 writing by the Director is authorized to serve process under
12 this Section to levy upon accounts or other intangible assets
13 of a taxpayer held by a financial organization, as defined by
14 Section 1501 of the Illinois Income Tax Act. In addition to
15 any other provisions of this Section, any officer or employee
16 of the Department designated in writing by the Director may
17 levy upon the following property and rights to property
18 belonging to a taxpayer: contractual payments, accounts and
19 notes receivable and other evidences of debt, and interest on
20 bonds, by serving a notice of levy on the person making such
21 payment. Levy shall not be made until the Department has
22 caused a demand to be made on the taxpayer in the manner
23 provided above. In addition to any other provisions of this
24 Section, any officer or employee of the Department designated
25 in writing by the Director, may levy upon the salary, wages,
26 commissions and bonuses of any employee, including officers,
27 employees, or elected officials of the United States as
28 authorized by Section 5520a of the Government Organization
29 and Employees Act (5 U.S.C. 5520a), but not upon the salary
30 or wages of officers, employees, or elected officials of any
31 state other than this State, by serving a notice of levy on
32 the employer. Levy shall not be made until the Department
33 has caused a demand to be made on the employee in the manner
34 provided above. The provisions of Section 12-803 of the Code
-848- LRB9000671KDdvA
1 of Civil Procedure relating to maximum compensation subject
2 to collection under wage deduction orders shall apply to all
3 levies made upon compensation under this Section. To the
4 extent of the amount due on the levy, the employer or other
5 person making payments to the taxpayer shall hold any
6 non-exempt wages or other payments due or which subsequently
7 come due. The levy or balance due thereon is a lien on wages
8 or other payments due at the time of the service of the
9 notice of levy, and such lien shall continue as to subsequent
10 earnings and other payments until the total amount due upon
11 the levy is paid, except that such lien on subsequent
12 earnings or other payments shall terminate sooner if the
13 employment relationship is terminated or if the notice of
14 levy is rescinded or modified. The employer or other person
15 making payments to the taxpayer shall file, on or before the
16 return dates stated in the notice of levy (which shall not be
17 more often than bimonthly) a written answer under oath to
18 interrogatories, setting forth the amount due as wages or
19 other payments to the taxpayer for the payment periods ending
20 immediately prior to the appropriate return date. A lien
21 obtained hereunder shall have priority over any subsequent
22 lien obtained pursuant to Section 12-808 of the Code of Civil
23 Procedure, except that liens for the support of a spouse or
24 dependent children shall have priority over all liens
25 obtained hereunder.
26 In any case where property or rights to property have
27 been seized by an officer of the Illinois Department of Law
28 Enforcement, or successor agency thereto, under the authority
29 of a warrant to levy issued by the Department of Revenue, the
30 Department of Revenue may take possession of and may sell
31 such property or rights to property and the Department of
32 Revenue may contract with third persons to conduct sales of
33 such property or rights to the property. In the conduct of
34 such sales, the Department of Revenue shall proceed in the
-849- LRB9000671KDdvA
1 same manner as is prescribed by law for proceeding against
2 property to enforce judgments which are entered by a circuit
3 court of this State. If, in the Department's opinion, no
4 offer to purchase at such sale is acceptable and the State's
5 interest would be better served by retaining the property for
6 sale at a later date, then the Department may decline to
7 accept any bid and may retain the property for sale at a
8 later date.
9 Section 65-30. Sale of property on which judgment for
10 tax is inferior; redemption. Except as to any sale had by
11 virtue of a judgment of foreclosure in accordance with
12 Article XV of the Code of Civil Procedure, whenever any real
13 estate has been or is sold at a judicial sale or a sale for
14 the enforcement of a judgment and such real estate is then
15 subject to a tax lien or notice of tax lien in favor of the
16 Department, as hereinbefore provided, and which is junior or
17 inferior to the lien so enforced or foreclosed by or through
18 that sale, the right to redeem in any manner under or by
19 virtue of such tax lien or claim for tax lien from such sale
20 or from the lien so foreclosed or enforced terminates at the
21 end of 12 months from the date upon which there is filed for
22 record in the office of the recorder for the county in which
23 the lands so sold are situated, if such lands are
24 unregistered, or in the office of the Registrar of Titles for
25 such county, if such lands are registered, a certified copy
26 of the original or duplicate recorded or registered
27 certificate of such sale, such certified copy being endorsed
28 by the Director of Revenue showing service of a copy of such
29 certificate upon him or her, and upon such service it shall
30 be the duty of such officer to make such endorsement.
31 Service may be by United States registered or certified mail.
32 Section 70-5. Revocation of certificate of registration.
-850- LRB9000671KDdvA
1 The Department may, after notice and a hearing as provided
2 herein, revoke the certificate of registration of any person
3 who violates any of the provisions of this Code. Before
4 revocation of a certificate of registration the Department
5 shall, within 90 days after non-compliance and at least 7
6 days prior to the date of the hearing, give the person so
7 accused notice in writing of the charge against him or her,
8 and on the date designated shall conduct a hearing upon this
9 matter. The lapse of such 90 day period shall not preclude
10 the Department from conducting revocation proceedings at a
11 later date if necessary. Any hearing held under this Section
12 shall be conducted by the Director of Revenue or by any
13 officer or employee of the Department designated, in writing,
14 by the Director of Revenue.
15 Upon the hearing of any such proceeding, the Director of
16 Revenue, or any officer or employee of the Department
17 designated, in writing, by the Director of Revenue, may
18 administer oaths and the Department may procure by its
19 subpoena the attendance of witnesses and, by its subpoena
20 duces tecum, the production of relevant books and papers. Any
21 circuit court, upon application either of the accused or of
22 the Department, may, by order duly entered, require the
23 attendance of witnesses and the production of relevant books
24 and papers, before the Department in any hearing relating to
25 the revocation of certificates of registration. Upon refusal
26 or neglect to obey the order of the court, the court may
27 compel obedience thereof by proceedings for contempt.
28 The Department may, by application to any circuit court,
29 obtain an injunction restraining any person who engages in
30 the business of selling tangible personal property at retail
31 in this State without a certificate of registration (either
32 because the certificate of registration has been revoked or
33 because of a failure to obtain a certificate of registration
34 in the first instance) from engaging in such business until
-851- LRB9000671KDdvA
1 such person, as if he or she were a new applicant for a
2 certificate of registration, shall comply with all of the
3 conditions, restrictions and requirements of Sections 35-5
4 through 35-45 of this Code and qualify for and obtain a
5 certificate of registration. Upon refusal or neglect to obey
6 the order of the court, the court may compel obedience
7 thereof by proceedings for contempt.
8 It shall not be a defense in a proceeding before the
9 Department to revoke a certificate of registration issued
10 under this Code, or in any action by the Department to
11 collect any tax due under this Code, that the holder of the
12 certificate is a party to an installment payment agreement
13 under Sections 35-5 through 35-45 if the liability which is
14 the basis of the revocation proceeding, or the tax that is
15 sought to be collected: (1) was incurred after the date of
16 the agreement was approved by the Department; or (2) was
17 incurred prior to the date the agreement was approved by the
18 Department, but was not included in the agreement; or (3) was
19 included in the agreement, but the taxpayer is in default of
20 the agreement.
21 Section 70-10. Investigations and hearings. For the
22 purpose of administering and enforcing the provisions of this
23 Code, the Department, or any officer or employee of the
24 Department designated, in writing, by the Director thereof,
25 may hold investigations and hearings concerning any matters
26 covered by this Code and may examine any books, papers,
27 records or memoranda bearing upon the sales of tangible
28 personal property or services of any such person, and may
29 require the attendance of such person or any officer or
30 employee of such person, or of any person having knowledge of
31 such business, and may take testimony and require proof for
32 its information. In the conduct of any investigation or
33 hearing, neither the Department nor any officer or employee
-852- LRB9000671KDdvA
1 thereof shall be bound by the technical rules of evidence,
2 and no informality in any proceeding, or in the manner of
3 taking testimony, shall invalidate any order, decision, rule
4 or regulation made or approved or confirmed by the
5 Department. The Director of Revenue, or any officer or
6 employee of the Department authorized by the Director
7 thereof, shall have power to administer oaths to such
8 persons. The books, papers, records and memoranda of the
9 Department, or parts thereof, may be proved in any hearing,
10 investigation, or legal proceeding by a reproduced copy
11 thereof under the certificate of the Director of Revenue.
12 Such reproduced copy shall, without further proof, be
13 admitted into evidence before the Department or in any legal
14 proceeding.
15 Section 70-15. Incriminating testimony. No person shall
16 be excused from testifying or from producing any books,
17 papers, records or memoranda in any investigation or upon any
18 hearing, when ordered to do so by the Department or any
19 officer or employee thereof, upon the ground that the
20 testimony or evidence, documentary or otherwise, may tend to
21 incriminate him or subject him to a criminal penalty, but no
22 person shall be prosecuted or subjected to any criminal
23 penalty for, or on account of, any transaction made or thing
24 concerning which he may testify or produce evidence,
25 documentary or otherwise, before the Department or an officer
26 or employee thereof; provided, that such immunity shall
27 extend only to a natural person who, in obedience to a
28 subpoena, gives testimony under oath or produces evidence,
29 documentary or otherwise, under oath. No person so testifying
30 shall be exempt from prosecution and punishment for perjury
31 committed in so testifying.
32 Section 70-20. Subpoenas; witnesses; depositions. The
-853- LRB9000671KDdvA
1 Department or any officer or employee of the Department
2 designated, in writing, by the Director thereof, shall at its
3 or his or her own instance, or on the written request of any
4 other party to the proceeding, issue subpoenas requiring the
5 attendance of and the giving of testimony by witnesses, and
6 subpoenas duces tecum requiring the production of books,
7 papers, records or memoranda. All subpoenas and subpoenas
8 duces tecum issued under the terms of this Code may be served
9 by any person of full age. The fees of witnesses for
10 attendance and travel shall be the same as the fees of
11 witnesses before the circuit court of this State; such fees
12 to be paid when the witness is excused from further
13 attendance. When the witness is subpoenaed at the instance of
14 the Department or any officer or employee thereof, such fees
15 shall be paid in the same manner as other expenses of the
16 Department, and when the witness is subpoenaed at the
17 instance of any other party to any such proceeding the
18 Department may require that the cost of service of the
19 subpoena or subpoena duces tecum and the fee of the witness
20 be borne by the party at whose instance the witness is
21 summoned. In such case, the Department, in its discretion,
22 may require a deposit to cover the cost of such service and
23 witness fees. A subpoena or subpoena duces tecum issued as
24 aforesaid shall be served in the same manner as a subpoena
25 issued out of a court.
26 Any circuit court of this State, upon the application of
27 the Department or any officer or employee thereof, or upon
28 the application of any other party to the proceeding, may, in
29 its discretion, compel the attendance of witnesses, the
30 production of books, papers, records or memoranda and the
31 giving of testimony before the Department or any officer or
32 employee thereof conducting an investigation or holding a
33 hearing authorized by this Code, by an attachment for
34 contempt, or otherwise, in the same manner as production of
-854- LRB9000671KDdvA
1 evidence may be compelled before the court.
2 The Department or any officer or employee thereof, or any
3 other party in an investigation or hearing before the
4 Department, may cause the depositions of witnesses within the
5 State to be taken in the manner prescribed by law for like
6 depositions in civil actions in courts of this State, and to
7 that end compel the attendance of witnesses and the
8 production of books, papers, records or memoranda.
9 Section 77-5. Review under Administrative Review Law.
10 The Department is authorized to make, promulgate and enforce
11 such reasonable rules and regulations relating to the
12 administration and enforcement of the provisions of this Code
13 as may be deemed expedient.
14 Whenever notice is required by this Code, such notice may
15 be given by United States registered or certified mail,
16 addressed to the person concerned at his last known address,
17 and proof of such mailing shall be sufficient for the
18 purposes of this Code. Notice of any hearing provided for by
19 this Code shall be so given not less than 7 days prior to the
20 day fixed for the hearing. Following the initial contact of a
21 person represented by an attorney, the Department shall not
22 contact the person concerned but shall only contact the
23 attorney representing the person concerned.
24 All hearings provided for in this Code with respect to or
25 concerning a taxpayer having his or her principal place of
26 business in this State other than in Cook County shall be
27 held at the Department's office nearest to the location of
28 the taxpayer's principal place of business: provided that if
29 the taxpayer has his or her principal place of business in
30 Cook County, such hearing shall be held in Cook County; and
31 provided, further, that if the taxpayer does not have his or
32 her principal place of business in this State, such hearing
33 shall be held in Sangamon County.
-855- LRB9000671KDdvA
1 The Circuit Court of the County wherein the taxpayer has
2 his or her principal place of business, or of Sangamon County
3 in those cases where the taxpayer does not have his or her
4 principal place of business in this State, shall have power
5 to review all final administrative decisions of the
6 Department in administering the provisions of this Code:
7 provided that if the administrative proceeding which is to be
8 reviewed judicially is a claim for refund proceeding
9 commenced in accordance with Section 55-5 or 55-10 of this
10 Code and Section 2a of the State Officers and Employees Money
11 Disposition Act, the Circuit Court having jurisdiction of
12 the action for judicial review under this Section and under
13 the Administrative Review Law shall be the same court that
14 entered the temporary restraining order or preliminary
15 injunction which is provided for in Section 2a of the State
16 Officers and Employees Money Disposition Act, and which
17 enables such claim proceeding to be processed and disposed of
18 as a claim for refund proceeding rather than as a claim for
19 credit proceeding.
20 The provisions of the Administrative Review Law, and the
21 rules adopted pursuant thereto, shall apply to and govern all
22 proceedings for the judicial review of final administrative
23 decisions of the Department hereunder. The term
24 "administrative decision" is defined as in Section 3-101 of
25 the Code of Civil Procedure.
26 Any person filing an action under the Administrative
27 Review Law to review a final assessment or revised final
28 assessment issued by the Department under this Code shall,
29 within 20 days after filing the complaint, file a bond with
30 good and sufficient surety or sureties residing in this State
31 or licensed to do business in this State or, instead of the
32 bond, obtain an order from the court imposing a lien upon the
33 plaintiff's property as provided in Article 65. If the person
34 filing the complaint fails to comply with this bonding
-856- LRB9000671KDdvA
1 requirement within 20 days after filing the complaint, the
2 Department shall file a motion to dismiss and the court shall
3 dismiss the action unless the person filing the action
4 complies with the bonding requirement set out in this
5 provision within 30 days after the filing of the Department's
6 motion to dismiss. Upon dismissal of any complaint for
7 failure to comply with the jurisdictional prerequisites
8 herein set forth, the court is empowered to and shall enter
9 judgment against the taxpayer and in favor of the Department
10 in the amount of the final assessment or revised final
11 assessment, together with any interest which may have accrued
12 since the Department issued the final assessment or revised
13 final assessment, and for costs, which judgment is
14 enforceable as other judgments for the payment of money. The
15 lien provided for in this Section shall not be applicable to
16 the real property of a corporate surety duly licensed to do
17 business in this State. The amount of such bond shall be
18 fixed and approved by the court, but shall not be less than
19 the amount of the tax and penalty claimed to be due by the
20 Department in its final assessment or revised final
21 assessment to the person filing such bond, plus the amount of
22 interest due from such person to the Department at the time
23 when the Department issued its final assessment to such
24 person. Such bond shall be executed to the Department of
25 Revenue and shall be conditioned on the taxpayer's payment
26 within 30 days after termination of the proceedings for
27 judicial review of the amount of tax and penalty and interest
28 found by the court to be due in such proceedings for judicial
29 review. Such bond, when filed and approved, shall, from such
30 time until 2 years after termination of the proceedings for
31 judicial review in which the bond is filed, be a lien against
32 the real estate situated in the county in which the bond is
33 filed, of the person filing such bond, and of the surety or
34 sureties on such bond, until the condition of the bond has
-857- LRB9000671KDdvA
1 been complied with or until the bond has been canceled as
2 hereinafter provided. If the person filing any such bond
3 fails to keep the condition thereof, such bond shall
4 thereupon be forfeited, and the Department may institute an
5 action upon such bond in its own name for the entire amount
6 of the bond and costs. Such action upon the bond shall be in
7 addition to any other remedy provided for herein. If the
8 person filing such bond complies with the condition thereof,
9 or if, in the proceedings for judicial review in which such
10 bond is filed, the court determines that no amount of tax or
11 penalty or interest is due, such bond shall be canceled.
12 If the court finds in a particular case that the
13 plaintiff cannot procure and furnish a satisfactory surety or
14 sureties for the kind of bond required herein, the court may
15 relieve the plaintiff of the obligation of filing such bond,
16 if, upon the timely application for a lien in lieu thereof
17 and accompanying proof therein submitted, the court is
18 satisfied that any such lien imposed would operate to secure
19 the assessment in the manner and to the degree as would a
20 bond. Upon a finding that such lien applied for would secure
21 the assessment at issue, the court shall enter an order, in
22 lieu of such bond, subjecting the plaintiff's real and
23 personal property (including subsequently acquired property),
24 situated in the county in which such order is entered, to a
25 lien in favor of the Department. Such lien shall be for the
26 amount of the tax and penalty claimed to be due by the
27 Department in its final assessment or revised final
28 assessment, plus the amount of interest due from such person
29 to the Department at the time when the Department issued its
30 final assessment to such person, and shall continue in full
31 force and effect until the termination of the proceedings for
32 judicial review, or until the plaintiff pays, to the
33 Department, the tax and penalty and interest to secure which
34 the lien is given, whichever happens first. In the exercise
-858- LRB9000671KDdvA
1 of its discretion, the court may impose a lien regardless of
2 the ratio of the taxpayer's assets to the final assessment or
3 revised final assessment plus the amount of the interest and
4 penalty. Nothing in this Section shall be construed to give
5 the Department a preference over the rights of any bona fide
6 purchaser, mortgagee, judgment creditor or other lien holder
7 arising prior to the entry of the order creating such lien in
8 favor of the Department: provided, however, that the word
9 "bona fide", as used in this Section, shall not include any
10 mortgage of real or personal property or any other credit
11 transaction that results in the mortgagee or the holder of
12 the security acting as trustee for unsecured creditors of the
13 taxpayer mentioned in the order for lien who executed such
14 chattel or real property mortgage or the document evidencing
15 such credit transaction. Such lien shall be inferior to the
16 lien of general taxes, special assessments and special taxes
17 heretofore or hereafter levied by any political subdivision
18 of this State. Such lien shall not be effective against any
19 purchaser with respect to any item in a retailer's stock in
20 trade purchased from the retailer in the usual course of such
21 retailer's business, and such lien shall not be enforced
22 against the household effects, wearing apparel, or the books,
23 tools or implements of a trade or profession kept for use by
24 any person. Such lien shall not be effective against real
25 property whose title is registered under the provisions of
26 the Registered Titles (Torrens) Act until the provisions of
27 Section 85 of that Act are complied with.
28 Service upon the Director of Revenue or the Assistant
29 Director of Revenue of the Department of Revenue of summons
30 issued in an action to review a final administrative decision
31 of the Department shall be service upon the Department. The
32 Department shall certify the record of its proceedings if the
33 taxpayer pays to it the sum of 75¢ per page of testimony
34 taken before the Department and 25¢ per page of all other
-859- LRB9000671KDdvA
1 matters contained in such record, except that these charges
2 may be waived where the Department is satisfied that the
3 aggrieved party is a poor person who cannot afford to pay
4 such charges. If payment for such record is not made by the
5 taxpayer within 30 days after notice from the Department or
6 the Attorney General of the cost thereof, the court in which
7 the proceeding is pending, on motion of the Department, shall
8 dismiss the complaint and (where the administrative decision
9 as to which the action for judicial review was filed is a
10 final assessment or revised final assessment) shall enter
11 judgment against the taxpayer and in favor of the Department
12 for the amount of tax and penalty shown by the Department's
13 final assessment or revised final assessment to be due, plus
14 interest as provided for in Section 50-150 of this Code from
15 the date when the liability upon which such interest accrued
16 became delinquent until the entry of the judgment in the
17 action for judicial review under the Administrative Review
18 Law, and also for costs.
19 Whenever any proceeding provided by this Code is begun
20 before the Department, either by the Department or by a
21 person subject to this Code, and such person thereafter dies
22 or becomes a person under legal disability before such
23 proceeding is concluded, the legal representative of the
24 deceased or person under legal disability shall notify the
25 Department of such death or legal disability. Such legal
26 representative, as such, shall then be substituted by the
27 Department for such person. If the legal representative
28 fails to notify the Department of his or her appointment as
29 such legal representative, the Department may, upon its own
30 motion, substitute such legal representative in the
31 proceeding pending before the Department for the person who
32 died or became a person under legal disability.
33 The changes made by Public Act 89-60 to Section 12 of the
34 Retailers' Occupation Tax Act, the predecessor to this
-860- LRB9000671KDdvA
1 Section 77-5, apply to all actions pending on and after June
2 30, 1995 to review a final assessment or revised final
3 assessment issued by the Department.
4 Section 80-15. Misrepresentation of gasohol. For
5 purposes of the retailers' occupation tax and the use tax,
6 any person who knowingly sells or represents as gasohol any
7 fuel that does not qualify as gasohol under this Code is
8 guilty of a business offense and shall be fined not more than
9 $100 for each day that the sale or representation takes place
10 after notification from the Department of Agriculture that
11 the fuel in question does not qualify as gasohol.
12 Section 85-5. Disposition of retailers' occupation tax
13 receipts. This Section applies to the retailers' occupation
14 tax only. Beginning January 1, 1990, each month the
15 Department shall pay into the Local Government Tax Fund, a
16 special fund in the State treasury which is hereby created,
17 the net revenue realized for the preceding month from the 1%
18 tax on sales of food for human consumption which is to be
19 consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks and food which has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes and needles used
24 by diabetics.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the County and Mass Transit District Fund, a
27 special fund in the State treasury which is hereby created,
28 4% of the net revenue realized for the preceding month from
29 the 6.25% general rate.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the Local Government Tax Fund 16% of the net
32 revenue realized for the preceding month from the 6.25%
-861- LRB9000671KDdvA
1 general rate on the selling price of tangible personal
2 property.
3 Of the remainder of the moneys received by the Department
4 pursuant to Article 10, disposition of funds shall be made as
5 provided in Section 85-25.
6 Subject to payment of amounts into the Build Illinois
7 Fund as provided in this Section and Section 85-25,
8 disposition of funds shall be made as provided in Section
9 85-30.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to this Article, each month the Department shall pay into the
13 Local Government Distributive Fund 0.4% of the net revenue
14 realized for the preceding month from the 5% general rate or
15 0.4% of 80% of the net revenue realized for the preceding
16 month from the 6.25% general rate, as the case may be, on the
17 selling price of tangible personal property which amount
18 shall, subject to appropriation, be distributed as provided
19 in Section 2 of the State Revenue Sharing Act. No payments
20 or distributions pursuant to this paragraph shall be made if
21 the tax imposed by Article 10 on photoprocessing products is
22 declared unconstitutional, or if the proceeds from such tax
23 are unavailable for distribution because of litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project pursuant this
26 Article, beginning July 1, 1993, the Department shall each
27 month pay into the Illinois Tax Increment Fund 0.27% of 80%
28 of the net revenue realized for the preceding month from the
29 6.25% general rate on the selling price of tangible personal
30 property.
31 Of the remainder of the moneys received by the Department
32 pursuant to Article 10, 75% thereof shall be paid into the
33 State Treasury and 25% shall be reserved in a special account
34 and used only for the transfer to the Common School Fund as
-862- LRB9000671KDdvA
1 part of the monthly transfer from the General Revenue Fund in
2 accordance with Section 8a of the State Finance Act.
3 As soon as possible after the first day of each month,
4 upon certification of the Department of Revenue, the
5 Comptroller shall order transferred and the Treasurer shall
6 transfer from the General Revenue Fund to the Motor Fuel Tax
7 Fund an amount equal to 1.7% of 80% of the net revenue
8 realized under Article 10 for the second preceding month;
9 except that this transfer shall not be made for the months
10 February through June, 1992.
11 For purposes of this Section, net revenue realized for a
12 month shall be the revenue collected by the State pursuant to
13 Article 10, less the amount paid out during that month as
14 refunds to taxpayers for overpayment of liability.
15 Section 85-10. Disposition of use tax receipts. This
16 Section shall apply to the use tax only. Beginning January
17 1, 1990, each month the Department shall pay into the State
18 and Local Sales Tax Reform Fund, a special fund in the State
19 Treasury which is hereby created, the net revenue realized
20 for the preceding month from the 1% tax on sales of food for
21 human consumption which is to be consumed off the premises
22 where it is sold (other than alcoholic beverages, soft drinks
23 and food which has been prepared for immediate consumption)
24 and prescription and nonprescription medicines, drugs,
25 medical appliances and insulin, urine testing materials,
26 syringes and needles used by diabetics.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the County and Mass Transit District Fund 4%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on the selling price of tangible personal
31 property which is purchased outside Illinois at retail from a
32 retailer and which is titled or registered by an agency of
33 this State's government.
-863- LRB9000671KDdvA
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury, 20% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property, other
6 than tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the Local Government Tax Fund 16% of the net
11 revenue realized for the preceding month from the 6.25%
12 general rate on the selling price of tangible personal
13 property which is purchased outside Illinois at retail from a
14 retailer and which is titled or registered by an agency of
15 this State's government.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 15, disposition of funds shall be made as
18 provided in Section 85-25.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in this Section and Section 85-25,
21 distribution of funds shall be made as provided in Section
22 85-30.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to this Article, each month the Department shall pay into the
26 Local Government Distributive Fund .4% of the net revenue
27 realized for the preceding month from the 5% general rate, or
28 .4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments or
33 distributions pursuant to this paragraph shall be made if the
34 tax imposed by Article 15 on photoprocessing products is
-864- LRB9000671KDdvA
1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to this Article,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 Of the remainder of the moneys received by the Department
12 pursuant to Article 15, 75% thereof shall be paid into the
13 State Treasury and 25% shall be reserved in a special account
14 and used only for the transfer to the Common School Fund as
15 part of the monthly transfer from the General Revenue Fund in
16 accordance with Section 8a of the State Finance Act.
17 As soon as possible after the first day of each month,
18 upon certification of the Department of Revenue, the
19 Comptroller shall order transferred and the Treasurer shall
20 transfer from the General Revenue Fund to the Motor Fuel Tax
21 Fund an amount equal to 1.7% of 80% of the net revenue
22 realized under Article 15 for the second preceding month;
23 except that this transfer shall not be made for the months
24 February through June of 1992.
25 Net revenue realized for a month shall be the revenue
26 collected by the State pursuant to Article 15, less the
27 amount paid out during that month as refunds to taxpayers for
28 overpayment of liability.
29 Section 85-20. Distribution of funds from the service
30 use tax. This Section shall apply to the service use tax
31 only. Beginning January 1, 1990, each month the Department
32 shall pay into the State and Local Tax Reform Fund, a special
33 fund in the State Treasury, the net revenue realized for the
-865- LRB9000671KDdvA
1 preceding month from the 1% tax on sales of food for human
2 consumption which is to be consumed off the premises where it
3 is sold (other than alcoholic beverages, soft drinks and food
4 which has been prepared for immediate consumption) and
5 prescription and nonprescription medicines, drugs, medical
6 appliances and insulin, urine testing materials, syringes and
7 needles used by diabetics.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the State and Local Sales Tax Reform Fund 20%
10 of the net revenue realized for the preceding month from the
11 6.25% general rate on transfers of tangible personal
12 property, other than tangible personal property which is
13 purchased outside Illinois at retail from a retailer and
14 which is titled or registered by an agency of this State's
15 government.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 25, disposition of funds shall be made as
18 provided in Section 85-25.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in this Section and Section 85-25,
21 distribution of funds shall be made as provided in Section
22 85-30.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to this Article, each month the Department shall pay into the
26 Local Government Distributive Fund 0.4% of the net revenue
27 realized for the preceding month from the 5% general rate or
28 0.4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments or
33 distributions pursuant to this paragraph shall be made if the
34 tax imposed by Article 25 on photo processing products is
-866- LRB9000671KDdvA
1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to this Article,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 All remaining moneys received by the Department pursuant
12 to Article 25 shall be paid into the General Revenue Fund of
13 the State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under Article 25 for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June, 1992.
22 For purposes of this Section, net revenue realized for a
23 month shall be the revenue collected by the State pursuant to
24 Article 25, less the amount paid out during that month as
25 refunds to taxpayers for overpayment of liability.
26 Section 90-10. Bulk sales. If any taxpayer, outside the
27 usual course of his business, sells or transfers the major
28 part of any one or more of (A) the stock of goods which he is
29 engaged in the business of selling, (B) the furniture or
30 fixtures, (C) the machinery and equipment, or (D) the real
31 property, of any business that is subject to the provisions
32 of this Code, the purchaser or transferee of such asset
33 shall, no later than 10 days after the sale or transfer, file
-867- LRB9000671KDdvA
1 a notice of sale or transfer of business assets with the
2 Chicago office of the Department disclosing the name and
3 address of the seller or transferor, the name and address of
4 the purchaser or transferee, the date of the sale or
5 transfer, a copy of the sales contract and financing
6 agreements which shall include a description of the property
7 sold, the amount of the purchase price or a statement of
8 other consideration for the sale or transfer, the terms for
9 payment of the purchase price, and such other information as
10 the Department may reasonably require. If the purchaser or
11 transferee fails to file the above described notice of sale
12 with the Department within the prescribed time, the purchaser
13 or transferee shall be personally liable for the amount owed
14 hereunder by the seller or transferor to the Department up to
15 the amount of the reasonable value of the property acquired
16 by the purchaser or transferee. The seller or transferor
17 shall pay the Department the amount of tax, penalty and
18 interest (if any) due from him under this Code up to the date
19 of the payment of tax. The seller or transferor, or the
20 purchaser or transferee, at least 10 days before the date of
21 the sale or transfer, may notify the Department of the
22 intended sale or transfer and request the Department to audit
23 the books and records of the seller or transferor, or to do
24 whatever else may be necessary to determine how much the
25 seller or transferor owes to the Department hereunder up to
26 the date of the sale or transfer. The Department shall take
27 such steps as may be appropriate to comply with such request.
28 Any order issued by the Department pursuant to this
29 Section to withhold from the purchase price shall be issued
30 within 10 days after the Department receives notification of
31 a sale as provided in this Section. The purchaser or
32 transferee shall withhold such portion of the purchase price
33 as may be directed by the Department, but not to exceed a
34 minimum amount varying by type of business, as determined by
-868- LRB9000671KDdvA
1 the Department pursuant to regulations, plus twice the
2 outstanding unpaid liabilities and twice the average
3 liability of preceding filings times the number of unfiled
4 returns, to cover the amount of all tax, penalty and interest
5 due and unpaid by the seller or transferor under this Code
6 or, if the payment of money or property is not involved,
7 shall withhold the performance of the condition that
8 constitutes the consideration for the sale or transfer.
9 Within 60 days after issuance of the initial order to
10 withhold, the Department shall provide written notice to the
11 purchaser or transferee of the actual amount of all taxes,
12 penalties and interest then due and whether or not additional
13 amounts may become due as a result of unfiled returns,
14 pending assessments and audits not completed. The purchaser
15 or transferee shall continue to withhold the amount directed
16 to be withheld by the initial order or such lesser amount as
17 is specified by the final withholding order or to withhold
18 the performance of the condition which constitutes the
19 consideration for the sale or transfer until the purchaser
20 or transferee receives from the Department a certificate
21 showing that such tax, penalty and interest have been paid or
22 a certificate from the Department showing that no tax,
23 penalty or interest is due from the seller or transferor
24 under this Code.
25 The purchaser or transferee is relieved of any duty to
26 continue to withhold from the purchase price and of any
27 liability for tax, penalty or interest due hereunder from the
28 seller or transferor if the Department fails to notify the
29 purchaser or transferee in the manner provided herein of the
30 amount to be withheld within 10 days after the sale or
31 transfer has been reported to the Department or within 60
32 days after issuance of the initial order to withhold, as the
33 case may be. The Department shall have the right to determine
34 amounts claimed on an estimated basis to allow for non-filed
-869- LRB9000671KDdvA
1 periods, pending assessments and audits not completed,
2 however the purchaser or transferee shall be personally
3 liable only for the actual amount due when determined.
4 If the seller or transferor fails to pay the tax, penalty
5 and interest (if any) due from him hereunder and the
6 Department makes timely claim therefor against the purchaser
7 or transferee as hereinabove provided, then the purchaser or
8 transferee shall pay the amount so withheld from the purchase
9 price to the Department. If the purchaser or transferee fails
10 to comply with the requirements of this Section, the
11 purchaser or transferee shall be personally liable to the
12 Department for the amount owed hereunder by the seller or
13 transferor to the Department up to the amount of the
14 reasonable value of the property acquired by the purchaser or
15 transferee.
16 Any person who shall acquire any property or rights
17 thereto which, at the time of such acquisition, is subject to
18 a valid lien in favor of the Department shall be personally
19 liable to the Department for a sum equal to the amount of
20 taxes secured by such lien but not to exceed the reasonable
21 value of such property acquired by him.
22 Section 90-30. Tax stated as distinct item from selling
23 price.
24 (a) The use tax imposed by Article 15 shall when
25 collected be stated as a distinct item separate and apart
26 from the selling price of the tangible personal property.
27 However, where it is not possible to state the sales tax
28 separately in situations such as sales from vending machines
29 or sales of liquor by the drink the Department may by rule
30 exempt such sales from this requirement so long as purchasers
31 are notified by a sign that the tax is included in the
32 selling price.
33 (b) For purposes of the service use tax, except as
-870- LRB9000671KDdvA
1 provided in subsection (c) of this Section, the selling price
2 of each item of tangible personal property transferred
3 incident to a sale of service may be stated as a distinct
4 item by the serviceman to the service customer and the
5 service use tax imposed by Article 25 shall when collected be
6 stated as a distinct item separate and apart from the selling
7 price of the tangible personal property. If the selling
8 price of each item of tangible personal property transferred
9 incidental to a sale of service is not stated as a separate
10 item on the serviceman's billing to the service customer,
11 then the service use tax imposed by Article 25 shall be based
12 on 50% of the serviceman's entire billing to the service
13 customer.
14 (c) For purposes of the service use tax, when a
15 serviceman contracts to design, develop and produce special
16 order machinery or equipment, the service use tax imposed by
17 Article 25 shall be based on the serviceman's cost price of
18 the tangible personal property transferred incident to the
19 completion of the contract.
20 PART 25. SERVICE USE TAX ACT
21 DISPOSITION CHART
22 SERVICE USE TAX ACT
23 Service Use
24 Tax Act (35/110) Occupation and Use Tax Code
25 -------------------------------------------------------------
26 Sec. 2 Sec. 5-145. Use
27 Sec. 5-90. Purchased from a serviceman
28 Sec. 5-95. Purchaser
29 Sec. 5-30. Cost price
30 Sec. 5-120. Selling price
-871- LRB9000671KDdvA
1 Sec. 5-35. Department
2 Sec. 5-65. Person
3 Sec. 30-235. Sale of service
4 Sec. 30-170. Property sold to charity,
5 religion, or education
6 Sec. 30-140. Rolling stock; personal
7 property
8 Sec. 30-145. Rolling stock; proceeds
9 from sales
10 Sec. 30-95. Manufacturing and assembling
11 machinery
12 Sec. 30-135. Property sold to rail common
13 carrier
14 Sec. 30-70. Distillation machinery and
15 equipment
16 Sec. 30-240. Election not to be sale of
17 service
18 Sec. 30-245. Maintenance agreement
19 Sec. 30-100. Manufacturing and assembling
20 exemption
21 Sec. 5-125. Serviceman
22 Sec. 5-115. Sale at retail
23 Sec. 5-135. Supplier
24 Sec. 5-130. Serviceman maintaining a
25 business
26 in State
27 Sec. 2a Sec. 5-75. Pollution control facilities
28 Sec. 30-5. Pollution control facilities
29 Sec. 2b Sec. 5-60. Low sulfur dioxide emission
30 coal fueled devices
31 Sec. 30-15. Low sulfur dioxide emission
32 coal fueled devices
33 Sec. 90-45. Low sulfur dioxide emission
-872- LRB9000671KDdvA
1 coal fueled devices;
2 declaratory provisions
3 Sec. 3 Sec. 25-5. Tax imposed
4 Sec. 3-5 (1) Sec. 30-165. Property sold for the benefit
5 of the elderly
6 Sec. 3-5 (2) Sec. 30-175. County fair association
7 Sec. 3-5(3) Sec. 30-160. Property sold to non-profit
8 music organization
9 Sec. 3-5(4) Sec. 30-205. Legal tender
10 Sec. 3-5(5) Sec. 30-90. Graphic arts machinery and
11 equipment
12 Sec. 3-5(6) Sec. 30-155. Personal property sold by
13 students
14 Sec. 3-5(7) Sec. 30-65. Farm machinery and equipment
15 Sec. 3-5(8) Sec. 30-125. Petroleum products sold to air
16 carrier
17 Sec. 3-5(9) Sec. 30-200. Mandatory service charge
18 Sec. 3-5(10) Sec. 30-75. Oil field equipment
19 Sec. 3-5(11) Sec. 30-85. Photoprocessing machinery and
20 equipment
21 Sec. 3-5(12) Sec. 30-80. Coal exploration equipment
22 Sec. 3-5(13) Sec. 30-55. Semen
23 Sec. 3-5(14) Sec. 30-50. Horses
24 Sec. 3-5(15) Sec. 30-185. Computers for hospitals.
25 Sec. 3-5(16) Sec. 30-190. Property sold for lease to
-873- LRB9000671KDdvA
1 government
2 Sec. 3-5(17) Sec. 30-180. Property donated for disaster
3 relief
4 Sec. 3-5(18) Sec. 30-45. Personal property used in
5 infrastructure repairs
6 Sec. 3-5.5 Sec. 30-195. Food and drug sold by
7 non-profit organization
8 Sec. 3-10 Sec. 25-15. Rate of tax
9 Sec. 3-15 Sec. 5-70. Photoprocessing
10 Sec. 3-20 Sec. 5-15. Bullion
11 Sec. 3-25 Sec. 5-20. Computer software
12 Sec. 3-30 Sec. 5-45. Graphic arts production
13 Sec. 3-35 Sec. 5-80. Production agriculture
14 Sec. 3-40 Sec. 25-20. Collection
15 Sec. 3-45 Sec. 30-220. Multistate exemption
16 Sec. 3-50 Sec. 30-150. Rolling stock exemption
17 Sec. 3-55 Sec. 25-25. S.O.T. nontaxability
18 Sec. 3-60 Sec. 30-225. Property acquired by
19 nonresident
20 Sec. 3-65 Sec. 90-15. Liability because of
21 amendatory Act
22 Sec. 3-70 Sec. 30-230. Manufacturer's Purchase Credit
23 Sec. 3-75 Sec. 90-20. Sunset of exemptions, credits,
24 and deductions
25 Sec. 3a Sec. 25-30. Method of stating tax
-874- LRB9000671KDdvA
1 Sec. 3c Sec. 5-25. Corporations organized for
2 educational purposes
3 Sec. 3d Sec. 25-35. Selling price of tangible
4 personal property
5 Sec. 4 Sec. 90-25. Delivery in State
6 Sec. 5 Sec. 60-20. Receipts; list of agents
7 Sec. 6 Sec. 35-20. Service use tax
8 Sec. 35-30. Issuance of certificate of
9 registration
10 Sec. 7 Sec. 60-10. Foreign retailers; permit to
11 collect tax
12 Sec. 8 Sec. 60-5. Tax collected as debt owed to
13 State; exception
14 Sec. 9 Sec. 50-110. Payment of tax by retailer or
15 serviceman
16 Sec. 50-25. Service use tax returns
17 Sec. 50-30. Quarterly returns
18 Sec. 50-40. Failure to sign a return
19 Sec. 50-100. Electronic funds transfer
20 Sec. 50-35. Filing returns quarterly or
21 annually
22 Sec. 50-60. Cessation of business
23 Sec. 50-105. Refunds
24 Sec. 50-70. Selling price of property
25 on returns
26 Sec. 50-75. Joint returns
27 Sec. 50-65. Multiple businesses
28 Sec. 85-20. Disposition of service use
29 tax receipts
30 Sec. 85-25. Build Illinois Fund
31 Sec. 85-30. McCormick Place Expansion
-875- LRB9000671KDdvA
1 Project Fund
2 Sec. 10 Sec. 50-155. Requirement to file return
3 Sec. 10a Sec. 35-70. Exemption from bonding
4 Sec. 11 Sec. 45-15. Records
5 Sec. 12 Sec. 90-40. Applicability of Uniform
6 Penalty and Interest Act
7 Sec. 13 Sec. 90-5. Appointment of Secretary
8 of State
9 Sec. 14 Sec. 60-15. Foreign retailers; revocation
10 of permit to collect
11 Sec. 15 Sec. 80-10. Violations
12 Sec. 16 Sec. 25-10. Tax additional
13 Sec. 17 Sec. 55-10. Erroneous payment; credit
14 refund
15 Sec. 55-15. Credit or refund; payment and
16 interest
17 Sec. 55-20. Claims for credit or refund
18 Sec. 18 Sec. 55-25. Determination of claim;
19 hearing
20 Sec. 55-30. Final determination of claim
21 Sec. 19 Sec. 55-35. Limitations
22 Sec. 20 Sec. 55-40. Application of credit or
23 refund against tax
24 Sec. 20a Sec. 75-5. Applicability of the
25 Administrative Procedure Act
26 Sec. 21 Sec. 90-35. Severability
-876- LRB9000671KDdvA
1 (35 ILCS 110/) (Service Use Tax Act.)
2 Title: An Act to impose a tax upon the privilege of using, in
3 this State, property acquired as an incident to the purchase
4 of service from a serviceman.
5 Cite: 35 ILCS 110/1 et seq.
6 From: Ch. 120, par. 439.31 et seq.
7 Source: L. 1961, p. 1757.
8 Date: Approved July 10, 1961.
9 Short title: Service Use Tax Act.
10 (35 ILCS 110/1) (from Ch. 120, par. 439.31)
11 Section 1-1. Short title. Sec. 1. This Act shall be
12 known and may be cited as the Occupation and Use Tax Code
13 "Service Use Tax Act", and the tax imposed by this Act may be
14 referred to as the "Service Use Tax".
15 (Source: Laws 1961, p. 1757.)
16 Section 1-5. Applicability. Unless otherwise specified
17 in this Code, the provisions of each Section or subsection of
18 this Code apply to all of the taxes imposed under Articles
19 10, 15, 20, and 25. For example, if a Section or subsection
20 begins with the phrase "for purposes of the retailers'
21 occupation tax and use tax", the provisions of that Section
22 or subsection apply only to the retailers' occupation tax
23 imposed in Article 10 and the use tax imposed in Article 15.
24 Those provisions would not apply to the service occupation
25 tax imposed in Article 20 or the service use tax imposed in
26 Article 25. If no language in a Section or subsection of
27 this Code specifically limits its application, then the
28 provisions of that Section or subsection apply to the
29 retailers' occupation tax imposed in Article 10, the use tax
30 imposed in Article 15, the service occupation tax imposed in
31 Article 20, and the service use tax imposed in Article 25.
32 (b) This Code, as enacted, is not intended to make any
-877- LRB9000671KDdvA
1 substantive changes in the meaning, effect, or application of
2 the continued and codified provisions of the Retailers'
3 Occupation Tax Act, the Use Tax Act, the Service Occupation
4 Tax Act, or the Service Use Tax Act.
5 (35 ILCS 110/2) (from Ch. 120, par. 439.32)
6 Section 5-145. Use.
7 (a) For purposes of the use tax, "use" means the
8 exercise by any person of any right or power over tangible
9 personal property incident to the ownership of that property,
10 except that it does not include the sale of such property in
11 any form as tangible personal property in the regular course
12 of business to the extent that such property is not first
13 subjected to a use for which it was purchased, and does not
14 include the use of such property by its owner for
15 demonstration purposes: provided that the property purchased
16 is deemed to be purchased for the purpose of resale, despite
17 first being used, to the extent to which it is resold as an
18 ingredient of an intentionally produced product or by-product
19 of manufacturing. "Use" does not mean the demonstration use
20 or interim use of tangible personal property by a retailer
21 before he sells that tangible personal property. For
22 watercraft or aircraft, if the period of demonstration use or
23 interim use by the retailer exceeds 18 months, the retailer
24 shall pay on the retailers' original cost price the tax
25 imposed by Article 15, and no credit for that tax is
26 permitted if the watercraft or aircraft is subsequently sold
27 by the retailer. "Use" does not mean the physical
28 incorporation of tangible personal property, to the extent
29 not first subjected to a use for which it was purchased, as
30 an ingredient or constituent, into other tangible personal
31 property (1) which is sold in the regular course of business
32 or (2) which the person incorporating such ingredient or
33 constituent therein has undertaken at the time of such
-878- LRB9000671KDdvA
1 purchase to cause to be transported in interstate commerce to
2 destinations outside the State of Illinois: provided that the
3 property purchased is deemed to be purchased for the purpose
4 of resale, despite first being used, to the extent to which
5 it is resold as an ingredient of an intentionally produced
6 product or by-product of manufacturing.
7 (b) For purposes of the service use tax, Sec. 2. "use"
8 means the exercise by any person of any right or power over
9 tangible personal property incident to the ownership of that
10 property, but does not include the sale or use for
11 demonstration by him of that property in any form as tangible
12 personal property in the regular course of business. "Use"
13 does not mean the interim use of tangible personal property
14 nor the physical incorporation of tangible personal property,
15 as an ingredient or constituent, into other tangible personal
16 property, (1) (a) which is sold in the regular course of
17 business or (2) (b) which the person incorporating such
18 ingredient or constituent therein has undertaken at the time
19 of such purchase to cause to be transported in interstate
20 commerce to destinations outside the State of Illinois.
21 Section 5-90. Purchased from a serviceman. For purposes
22 of the service use tax, "purchased from a serviceman" means
23 the acquisition of the ownership of, or title to, tangible
24 personal property through a sale of service.
25 Section 5-95. Purchaser.
26 (a) For purposes of the retailers' occupation tax and
27 the use tax, "purchaser" means anyone who, through a sale at
28 retail, acquires the ownership of or title to tangible
29 personal property for a valuable consideration.
30 (b) For purposes of the service use tax, "purchaser"
31 means anyone any person who, through a sale of service,
32 acquires the ownership of, or title to, any tangible personal
-879- LRB9000671KDdvA
1 property.
2 Section 5-30. Cost price. For purposes of the service
3 occupation tax and the service use tax, "cost price" means
4 the consideration paid by the serviceman for a purchase
5 valued in money, whether paid in money or otherwise,
6 including cash, credits and services, and shall be determined
7 without any deduction on account of the supplier's cost of
8 the property sold or on account of any other expense incurred
9 by the supplier. When a serviceman contracts out part or all
10 of the services required in his sale of service, it shall be
11 presumed that the cost price to the serviceman of the
12 property transferred to him or her by his or her
13 subcontractor is equal to 50% of the subcontractor's charges
14 to the serviceman in the absence of proof of the
15 consideration paid by the subcontractor for the purchase of
16 such property.
17 Section 5-120. Selling price.
18 (a) For purposes of the retailers' occupation tax and
19 the use tax, "selling price" means the consideration for a
20 sale valued in money whether received in money or otherwise,
21 including cash, credits, property other than as hereinafter
22 provided, and services, but not including the value of or
23 credit given for traded-in tangible personal property where
24 the item that is traded-in is of like kind and character as
25 that which is being sold, and shall be determined without any
26 deduction on account of the cost of the property sold, the
27 cost of materials used, labor or service cost or any other
28 expense whatsoever, but does not include, for purposes of the
29 use tax only, interest or finance charges which appear as
30 separate items on the bill of sale or sales contract nor, for
31 purposes of the retailers' occupation tax and the use tax,
32 charges that are added to prices by sellers on account of the
-880- LRB9000671KDdvA
1 seller's tax liability under Article 10, or on account of the
2 seller's duty to collect, from the purchaser, the tax that is
3 imposed by Article 15, or on account of the seller's tax
4 liability under Section 8-11-1 of the Illinois Municipal
5 Code, or on account of the seller's tax liability under the
6 County Retailers' Occupation Tax Act, or on account of the
7 seller's tax liability under any tax imposed under the
8 Regional Transportation Authority Act. Effective December 1,
9 1985, "selling price" shall include charges that are added to
10 prices by sellers on account of the seller's tax liability
11 under the Cigarette Tax Act, on account of the seller's duty
12 to collect, from the purchaser, the tax imposed under the
13 Cigarette Use Tax Act, and on account of the seller's duty to
14 collect, from the purchaser, any cigarette tax imposed by a
15 home rule unit.
16 (b) For purposes of the retailers' occupation tax,
17 "selling price" does not include charges that are added to
18 prices by sellers on account of the seller's tax liability
19 under the Home Rule Municipal Soft Drink Retailers'
20 Occupation Tax. "Amount of sale" shall have the same meaning
21 as "selling price".
22 (c) For purposes of the service occupation tax and the
23 service use tax, "selling price" means the consideration for
24 a sale valued in money whether received in money or
25 otherwise, including cash, credits and service, and shall be
26 determined without any deduction on account of the
27 serviceman's cost of the property sold, the cost of materials
28 used, labor or service cost or any other expense whatsoever,
29 but does not include interest or finance charges which appear
30 as separate items on the bill of sale or sales contract nor
31 charges that are added to prices by sellers on account of the
32 seller's duty to collect, from the purchaser, the tax that is
33 imposed by Article 25 this Act.
-881- LRB9000671KDdvA
1 Section 5-35. Department. "Department" means the
2 Department of Revenue.
3 Section 5-65. Person. "Person" means any natural
4 individual, firm, partnership, association, joint stock
5 company, joint venture, public or private corporation,
6 limited liability company, or a and any receiver, executor,
7 trustee, guardian or other representative appointed by order
8 of any court.
9 Section 30-235. Sale of service. For purposes of the
10 service occupation tax and the service use tax, "sale of
11 service" means any transaction except:
12 (1) a retail sale of tangible personal property
13 taxable under Article 10 or Article 15 the Retailers'
14 Occupation Tax Act or under the Use Tax Act.
15 (2) a sale of tangible personal property for the
16 purpose of resale made in compliance with Section 35-50
17 2c of the Retailers' Occupation Tax Act.
18 (3) for purposes of the service occupation tax
19 only, until January 1, 1997, a sale, by a registered
20 serviceman paying service occupation tax to the
21 Department, of special order printed materials delivered
22 outside Illinois and which are not returned to this
23 State, if delivery is made by the seller or agent of the
24 seller, including an agent who causes the product to be
25 delivered outside Illinois by a common carrier or the
26 U.S. postal service.
27 Section 30-170. Personal property sold to charitable,
28 religious, or educational organizations.
29 (a) For purposes of the retailers' occupation tax and
30 the use tax, personal property sold to or purchased by a
31 governmental body, to a corporation, society, association,
-882- LRB9000671KDdvA
1 foundation, or institution organized and operated exclusively
2 for charitable, religious, or educational purposes, or to a
3 not-for-profit corporation, society, association, foundation,
4 institution, or organization that has no compensated officers
5 or employees and that is organized and operated primarily for
6 the recreation of persons 55 years of age or older is exempt.
7 A limited liability company may qualify for the exemption
8 under this subsection only if the limited liability company
9 is organized and operated exclusively for educational
10 purposes. On and after July 1, 1987, however, no entity
11 otherwise eligible for this exemption shall make tax-free
12 purchases unless it has an active exemption identification
13 number issued by the Department in accordance with Section
14 35-60 of this Code.
15 (b) For purposes of the service occupation tax and the
16 service use tax, "sale of service" shall not include, (3)
17 except as hereinafter provided, a sale or transfer of
18 tangible personal property as an incident to the rendering of
19 service for or by any governmental body, or for or by any
20 corporation, society, association, foundation or institution
21 organized and operated exclusively for charitable, religious
22 or educational purposes or any not-for-profit corporation,
23 society, association, foundation, institution or organization
24 which has no compensated officers or employees and which is
25 organized and operated primarily for the recreation of
26 persons 55 years of age or older. A limited liability company
27 may qualify for the exemption under this subsection paragraph
28 only if the limited liability company is organized and
29 operated exclusively for educational purposes. On and after
30 July 1, 1987, however, no entity otherwise eligible for the
31 exemption under this subsection shall make tax free purchases
32 unless it has an active exemption identification number
33 issued by the Department.
-883- LRB9000671KDdvA
1 Section 30-140. Rolling stock; personal property.
2 (a) For purposes of the retailers' occupation tax and
3 the use tax, personal property sold to an interstate carrier
4 for hire for use as rolling stock moving in interstate
5 commerce or to lessors under leases of one year or longer
6 executed or in effect at the time of purchase by interstate
7 carriers for hire for use as rolling stock moving in
8 interstate commerce as long as so used by interstate carriers
9 for hire and equipment operated by a telecommunications
10 provider, licensed as a common carrier by the Federal
11 Communications Commission, which is permanently installed in
12 or affixed to aircraft moving in interstate commerce is
13 exempt.
14 (b) For purposes of the service occupation tax and the
15 service use tax, "sale of service" shall not include (4) a
16 sale or transfer of tangible personal property as an incident
17 to the rendering of service for interstate carriers for hire
18 for use as rolling stock moving in interstate commerce or by
19 lessors under leases a lease of one year or longer, executed
20 or in effect at the time of purchase of personal property, to
21 interstate carriers for hire for use as rolling stock moving
22 in interstate commerce as so long as so used by such
23 interstate carriers for hire, and equipment operated by a
24 telecommunications provider, licensed as a common carrier by
25 the Federal Communications Commission, which is permanently
26 installed in or affixed to aircraft moving in interstate
27 commerce.
28 Section 30-145. Rolling stock; proceeds from sales.
29 (a) For purposes of the retailers' occupation tax and
30 the use tax, proceeds from sales to owners, lessors, or
31 shippers of tangible personal property that is utilized by
32 interstate carriers for hire for use as rolling stock moving
33 in interstate commerce as long as so used by the interstate
-884- LRB9000671KDdvA
1 carriers for hire, and equipment operated by a
2 telecommunications provider, licensed as a common carrier by
3 the Federal Communications Commission, which is permanently
4 installed in or affixed to aircraft moving in interstate
5 commerce are exempt.
6 (b) For purposes of the service occupation tax and the
7 service use tax, "sale of service" shall not include (4a) a
8 sale or transfer of tangible personal property as an incident
9 to the rendering of service for owners, lessors, or shippers
10 of tangible personal property which is utilized by interstate
11 carriers for hire for use as rolling stock moving in
12 interstate commerce as so long as so used by such interstate
13 carriers for hire, and equipment operated by a
14 telecommunications provider, licensed as a common carrier by
15 the Federal Communications Commission, which is permanently
16 installed in or affixed to aircraft moving in interstate
17 commerce.
18 Section 30-95. Manufacturing and assembling machinery
19 and equipment.
20 (a) For purposes of the retailers' occupation tax and
21 the use tax, machinery and equipment that will be used by the
22 purchaser, or a lessee of the purchaser, primarily in the
23 process of manufacturing or assembling tangible personal
24 property for wholesale or retail sale or lease, whether the
25 sale or lease is made directly by the manufacturer or by some
26 other person, whether the materials used in the process are
27 owned by the manufacturer or some other person, or whether
28 the sale or lease is made apart from or as an incident to the
29 seller's engaging in the service occupation of producing
30 machines, tools, dies, jigs, patterns, gauges, or other
31 similar items of no commercial value on special order for a
32 particular purchaser is exempt.
33 (b) For purposes of the service occupation tax and
-885- LRB9000671KDdvA
1 service use tax, "sale of service" shall not include (5) a
2 sale or transfer of machinery and equipment used primarily in
3 the process of the manufacturing or assembling, either in an
4 existing, an expanded or a new manufacturing facility, of
5 tangible personal property for wholesale or retail sale or
6 lease, whether such sale or lease is made directly by the
7 manufacturer or by some other person, whether the materials
8 used in the process are owned by the manufacturer or some
9 other person, or whether such sale or lease is made apart
10 from or as an incident to the seller's engaging in a service
11 occupation and the applicable tax is a service use tax or
12 service occupation tax, rather than use tax or retailers'
13 occupation tax.
14 Section 30-135. Tangible personal property sold to rail
15 common carrier.
16 (a) For purposes of the retailers' occupation tax and
17 the use tax, tangible personal property sold to a common
18 carrier by rail that receives the physical possession of the
19 property in Illinois and that transports the property, or
20 shares with another common carrier in the transportation of
21 the property, out of Illinois on a standard uniform bill of
22 lading showing the seller of the property as the shipper or
23 consignor of the property to a destination outside Illinois,
24 for use outside Illinois is exempt.
25 (b) For purposes of the service occupation tax and the
26 service use tax, "sale of service" shall not include (5a) the
27 repairing, reconditioning or remodeling, for a common carrier
28 by rail, of tangible personal property which belongs to such
29 carrier for hire, and as to which such carrier receives the
30 physical possession of the repaired, reconditioned or
31 remodeled item of tangible personal property in Illinois, and
32 which such carrier transports, or shares with another common
33 carrier in the transportation of such property, out of
-886- LRB9000671KDdvA
1 Illinois on a standard uniform bill of lading showing the
2 person who repaired, reconditioned or remodeled the property
3 as the shipper or consignor of such property to a destination
4 outside Illinois, for use outside Illinois.
5 (c) For purposes of the service occupation tax and the
6 service use tax, "sale of service" shall not include (5b) a
7 sale or transfer of tangible personal property which is
8 produced by the seller thereof on special order in such a way
9 as to have made the applicable tax the service occupation tax
10 or the service use tax, rather than the retailers' occupation
11 tax or the use tax, for an interstate carrier by rail which
12 receives the physical possession of such property in
13 Illinois, and which transports such property, or shares with
14 another common carrier in the transportation of such
15 property, out of Illinois on a standard uniform bill of
16 lading showing the seller of the property as the shipper or
17 consignor of such property to a destination outside Illinois,
18 for use outside Illinois.
19 Section 30-70. Distillation machinery and equipment.
20 (a) For purposes of the retailers' occupation tax and
21 the use tax, distillation machinery and equipment, sold as a
22 unit or kit, assembled or installed by the retailer,
23 certified by the user to be used only for the production of
24 ethyl alcohol that will be used for consumption as motor fuel
25 or as a component of motor fuel for the personal use of the
26 user, and not subject to sale or resale is exempt.
27 (b) For purposes of the service occupation tax and the
28 service use tax, "sale of service" shall not include (6) a
29 sale or transfer of distillation machinery and equipment,
30 sold as a unit or kit and assembled or installed by the
31 retailer, which machinery and equipment is certified by the
32 user to be used only for the production of ethyl alcohol that
33 will be used for consumption as motor fuel or as a component
-887- LRB9000671KDdvA
1 of motor fuel for the personal use of such user and not
2 subject to sale or resale.
3 Section 30-240. Election not to be sale of service. For
4 purposes of the service occupation tax and the service use
5 tax, "sale of service" shall not include, (7) at the election
6 of any serviceman not required to be otherwise registered as
7 a retailer under Sections 35-5 through 35-45 Section 2a of
8 the Retailers' Occupation Tax Act, made for each fiscal year
9 sales of service in which the aggregate annual cost price of
10 tangible personal property transferred as an incident to the
11 sales of service is less than 35%, or 75% in the case of
12 servicemen transferring prescription drugs or servicemen
13 engaged in graphic arts production, of the aggregate annual
14 total gross receipts from all sales of service. The purchase
15 of such tangible personal property by the serviceman shall be
16 subject to tax under the retailers' occupation tax Act and
17 the use tax Act. However, if a primary serviceman who has
18 made the election described in this Section paragraph
19 subcontracts service work to a secondary serviceman who has
20 also made the election described in this Section paragraph,
21 the primary serviceman does not incur a use tax liability if
22 the secondary serviceman (i) has paid or will pay use tax on
23 his or her cost price of any tangible personal property
24 transferred to the primary serviceman and (ii) certifies that
25 fact in writing to the primary serviceman.
26 Section 30-245. Maintenance agreement. Tangible personal
27 property transferred incident to the completion of a
28 maintenance agreement is exempt from the taxes tax imposed
29 pursuant to Article 20 and Article 25 this Act.
30 Section 30-100. Manufacturing and assembling exemption.
31 (a) For purposes of the retailers' occupation tax and
-888- LRB9000671KDdvA
1 the use tax, the manufacturing and assembling machinery and
2 equipment exemption includes machinery and equipment that
3 replaces machinery and equipment in an existing manufacturing
4 facility as well as machinery and equipment that are for use
5 in an expanded or new manufacturing facility. The
6 manufacturing and assembling machinery and equipment
7 exemption includes the sale of materials to a purchaser who
8 produces exempted types of machinery, equipment, or tools and
9 who rents or leases that machinery, equipment, or tools to a
10 manufacturer of tangible personal property. This exemption
11 also includes the sale of materials to a purchaser who
12 manufactures those materials into an exempted type of
13 machinery, equipment, or tools that the purchaser uses
14 himself or herself in the manufacturing of tangible personal
15 property. For purposes of the use tax, this exemption also
16 includes the sale of exempted types of machinery or equipment
17 to a purchaser who is not the manufacturer, but who rents or
18 leases the use of the property to a manufacturer.
19 (b) For purposes of this Code, the machinery and
20 equipment exemption Exemption (5) also includes machinery and
21 equipment used in the general maintenance or repair of such
22 exempt machinery and equipment or for in-house manufacture of
23 exempt machinery and equipment. For the purposes of this
24 exemption (5), each of these terms shall have the following
25 meanings:
26 (1) "Manufacturing process" means shall mean the
27 production of an any article of tangible personal
28 property, whether the such article is a finished product
29 or an article for use in the process of manufacturing or
30 assembling a different article of tangible personal
31 property, by a procedure procedures commonly regarded as
32 manufacturing, processing, fabricating, or refining that
33 which changes some existing material or materials into a
34 material with a different form, use, or name. In
-889- LRB9000671KDdvA
1 relation to a recognized integrated business composed of
2 a series of operations that which collectively constitute
3 manufacturing, or individually constitute manufacturing
4 operations, the manufacturing process commences shall be
5 deemed to commence with the first operation or stage of
6 production in the series, and does shall not be deemed to
7 end until the completion of the final product in the last
8 operation or stage of production in the series.; and
9 further, For purposes of this exemption (5),
10 photoprocessing is deemed to be a manufacturing process
11 of tangible personal property for wholesale or retail
12 sale.;
13 (2) "Assembling process" means shall mean the
14 production of an any article of tangible personal
15 property, whether the such article is a finished product
16 or an article for use in the process of manufacturing or
17 assembling a different article of tangible personal
18 property, by the combination of existing materials in a
19 manner commonly regarded as assembling that which results
20 in an article or a material of a different form, use, or
21 name.;
22 (3) "Machinery" means shall mean major mechanical
23 machines or major components of those such machines
24 contributing to a manufacturing or assembling process.;
25 and
26 (4) "Equipment" includes an shall include any
27 independent device or tool separate from any machinery
28 but essential to an integrated manufacturing or assembly
29 process; including computers used primarily in operating
30 exempt machinery and equipment in a computer assisted
31 design, computer assisted manufacturing (CAD/CAM) system;
32 or any subunit or assembly comprising a component of any
33 machinery or auxiliary, adjunct or attachment parts of
34 machinery, such as tools, dies, jigs, fixtures, patterns,
-890- LRB9000671KDdvA
1 and molds; and or any parts that which require periodic
2 replacement in the course of normal operation; but does
3 shall not include hand tools.
4 (c) For purposes of this Code, the purchaser of the such
5 machinery and equipment who has an active resale registration
6 number shall furnish that such number to the seller at the
7 time of purchase. For purposes of the retailers' occupation
8 tax and the service occupation tax, a purchaser of the
9 machinery, equipment, and tools without an active resale
10 registration number shall furnish to the seller a certificate
11 of exemption for each transaction stating facts establishing
12 the exemption for that transaction. For purposes of the use
13 tax and the service use tax, a The user of the such
14 machinery, and equipment, or and tools without an active
15 resale registration number shall prepare a certificate of
16 exemption for each transaction stating facts establishing the
17 exemption for that transaction. That, which certificate
18 shall be available to the Department for inspection or audit.
19 The Department shall prescribe the form of the certificate.
20 Any Informal rulings, opinions, or letters issued by the
21 Department in response to an inquiry or request for an any
22 opinion from any person regarding the coverage and
23 applicability of this exemption (5) to specific devices shall
24 be published, maintained as a public record, and made
25 available for public inspection and copying. If the informal
26 ruling, opinion, or letter contains trade secrets or other
27 confidential information, where possible, the Department
28 shall delete that such information before prior to
29 publication. Whenever such informal rulings, opinions, or
30 letters contain a any policy of general applicability, the
31 Department shall formulate and adopt that such policy as a
32 rule in accordance with the provisions of the Illinois
33 Administrative Procedure Act.
34 On and after July 1, 1987, no entity otherwise eligible
-891- LRB9000671KDdvA
1 under exemption (3) of this Section shall make tax free
2 purchases unless it has an active exemption identification
3 number issued by the Department.
4 Section 5-115. Sale at retail.
5 (a) "Sale at retail" means any transfer of the ownership
6 of or title to tangible personal property to a purchaser, for
7 the purpose of use or consumption, and not for the purpose of
8 resale in any form as tangible personal property to the
9 extent not first subjected to a use for which it was
10 purchased, for a valuable consideration: provided that the
11 property purchased is deemed to be purchased for the purpose
12 of resale, despite first being used, to the extent to which
13 it is resold as an ingredient of an intentionally produced
14 product or byproduct of manufacturing. For this purpose,
15 slag produced as an incident to manufacturing pig iron or
16 steel and sold is considered to be an intentionally produced
17 byproduct of manufacturing. "Sale at retail" shall be
18 construed to include any transfer, whether made for or
19 without a valuable consideration, for resale in any form as
20 tangible personal property unless made in compliance with
21 Section 35-50 of this Code. Transactions whereby the
22 possession of the property is transferred but the seller
23 retains the title as security for payment of the selling
24 price shall be deemed to be sales.
25 "Sale at retail" shall be construed to include any
26 Illinois florist's sales transaction in which the purchase
27 order is received in Illinois by a florist and the sale is
28 for use or consumption, but the Illinois florist has a
29 florist in another state deliver the property to the
30 purchaser or the purchaser's donee in such other state.
31 The purchase, employment and transfer of such tangible
32 personal property as newsprint and ink for the primary
33 purpose of conveying news (with or without other information)
-892- LRB9000671KDdvA
1 is not a purchase, use or sale of service or of tangible
2 personal property within the meaning of this Act.
3 (b) For purposes of the retailers' occupation tax, the
4 service occupation tax, and the service use tax, "sale at
5 retail" shall be construed to include any transfer of the
6 ownership of or title to tangible personal property to a
7 purchaser, for use or consumption by any other person to whom
8 such purchaser may transfer the tangible personal property
9 without a valuable consideration.
10 Sales of tangible personal property, which property, to
11 the extent not first subjected to a use for which it was
12 purchased, as an ingredient or constituent, goes into and
13 forms a part of tangible personal property subsequently the
14 subject of a "sale at retail", are not sales at retail as
15 defined in this Code: provided that the property purchased is
16 deemed to be purchased for the purpose of resale, despite
17 first being used, to the extent to which it is resold as an
18 ingredient of an intentionally produced product or byproduct
19 of manufacturing.
20 A person whose activities are organized and conducted
21 primarily as a not-for-profit service enterprise, and who
22 engages in selling tangible personal property at retail
23 (whether to the public or merely to members and their guests)
24 is engaged in the business of selling tangible personal
25 property at retail with respect to such transactions,
26 excepting only a person organized and operated exclusively
27 for charitable, religious or educational purposes either (1)
28 to the extent of sales by such person to its members,
29 students, patients or inmates of tangible personal property
30 to be used primarily for the purposes of such person, or (2)
31 to the extent of sales by such person of tangible personal
32 property which is not sold or offered for sale by persons
33 organized for profit. The selling of school books and school
34 supplies by schools at retail to students is not "primarily
-893- LRB9000671KDdvA
1 for the purposes of" the school which does such selling. The
2 provisions of this paragraph shall not apply to nor subject
3 to taxation occasional dinners, socials or similar activities
4 of a person organized and operated exclusively for
5 charitable, religious or educational purposes, whether or not
6 such activities are open to the public.
7 A person who is the recipient of a grant or contract
8 under Title VII of the Older Americans Act of 1965 (P.L.
9 92-258) and serves meals to participants in the federal
10 Nutrition Program for the Elderly in return for contributions
11 established in amount by the individual participant pursuant
12 to a schedule of suggested fees as provided for in the
13 federal Act is not engaged in the business of selling
14 tangible personal property at retail with respect to such
15 transactions.
16 The isolated or occasional sale of tangible personal
17 property at retail by a person who does not hold himself out
18 as being engaged (or who does not habitually engage) in
19 selling such tangible personal property at retail, or a sale
20 through a bulk vending machine, does not constitute engaging
21 in a business of selling such tangible personal property at
22 retail within the meaning of this Code; provided that any
23 person who is engaged in a business which is not subject to
24 the taxes imposed by this Code because of involving the sale
25 of or a contract to sell real estate or a construction
26 contract to improve real estate or a construction contract to
27 engineer, install, and maintain an integrated system of
28 products, but who, in the course of conducting such business,
29 transfers tangible personal property to users or consumers in
30 the finished form in which it was purchased, and which does
31 not become real estate or was not engineered and installed,
32 under any provision of a construction contract or real estate
33 sale or real estate sales agreement entered into with some
34 other person arising out of or because of such nontaxable
-894- LRB9000671KDdvA
1 business, is engaged in the business of selling tangible
2 personal property at retail to the extent of the value of the
3 tangible personal property so transferred. If, in such a
4 transaction, a separate charge is made for the tangible
5 personal property so transferred, the value of such property,
6 for the purpose of this Code, shall be the amount so
7 separately charged, but not less than the cost of such
8 property to the transferor; if no separate charge is made,
9 the value of such property, for the purposes of this Code, is
10 the cost to the transferor of such tangible personal
11 property. Construction contracts for the improvement of real
12 estate consisting of engineering, installation, and
13 maintenance of voice, data, video, security, and all
14 telecommunication systems do not constitute engaging in a
15 business of selling tangible personal property at retail
16 within the meaning of this Code if they are sold at one
17 specified contract price.
18 A person who holds himself or herself out as being
19 engaged (or who habitually engages) in selling tangible
20 personal property at retail is a person engaged in the
21 business of selling tangible personal property at retail
22 hereunder with respect to such sales (and not primarily in a
23 service occupation) notwithstanding the fact that such person
24 designs and produces such tangible personal property on
25 special order for the purchaser and in such a way as to
26 render the property of value only to such purchaser, if such
27 tangible personal property so produced on special order
28 serves substantially the same function as stock or standard
29 items of tangible personal property that are sold at retail.
30 Persons who engage in the business of transferring
31 tangible personal property upon the redemption of trading
32 stamps are engaged in the business of selling such property
33 at retail and shall be liable for and shall pay the tax
34 imposed by this Code on the basis of the retail value of the
-895- LRB9000671KDdvA
1 property transferred upon redemption of such stamps.
2 Section 5-125. Serviceman. "Serviceman" means any person
3 who is engaged in the occupation of making sales of service.
4 "Sale at retail" means "sale at retail" as defined in the
5 Retailers' Occupation Tax Act.
6 Section 5-135. Supplier. For purposes of the service
7 occupation tax and the service use tax, "supplier" means any
8 person who makes sales of tangible personal property to
9 servicemen for the purpose of resale as an incident to a sale
10 of service.
11 Section 5-130. Serviceman maintaining a place of
12 business in this State. For purposes of the service use tax,
13 "serviceman maintaining a place of business in this State",
14 or any like term, means and includes any serviceman:
15 (1) 1. having or maintaining within this State,
16 directly or by a subsidiary, an office, distribution
17 house, sales house, warehouse or other place of business,
18 or any agent or other representative operating within
19 this State under the authority of the serviceman or its
20 subsidiary, irrespective of whether such place of
21 business or agent or other representative is located here
22 permanently or temporarily, or whether such serviceman or
23 subsidiary is licensed to do business in this State;
24 (2) 2. soliciting orders for tangible personal
25 property by means of a telecommunication or television
26 shopping system (which utilizes toll free numbers) which
27 is intended by the retailer to be broadcast by cable
28 television or other means of broadcasting, to consumers
29 located in this State;
30 (3) 3. pursuant to a contract with a broadcaster or
31 publisher located in this State, soliciting orders for
-896- LRB9000671KDdvA
1 tangible personal property by means of advertising which
2 is disseminated primarily to consumers located in this
3 State and only secondarily to bordering jurisdictions;
4 (4) 4. soliciting orders for tangible personal
5 property by mail if the solicitations are substantial and
6 recurring and if the retailer benefits from any banking,
7 financing, debt collection, telecommunication, or
8 marketing activities occurring in this State or benefits
9 from the location in this State of authorized
10 installation, servicing, or repair facilities;
11 (5) 5. being owned or controlled by the same
12 interests which own or control any retailer engaging in
13 business in the same or similar line of business in this
14 State;
15 (6) 6. having a franchisee or licensee operating
16 under its trade name if the franchisee or licensee is
17 required to collect the tax under this Section;
18 (7) 7. pursuant to a contract with a cable
19 television operator located in this State, soliciting
20 orders for tangible personal property by means of
21 advertising which is transmitted or distributed over a
22 cable television system in this State; or
23 (8) 8. engaging in activities in Illinois, which
24 activities in the state in which the supply business
25 engaging in such activities is located would constitute
26 maintaining a place of business in that state.
27 (Source: P.A. 88-480; 88-505; 88-547; 88-670, eff. 12-2-94;
28 89-675, eff. 8-14-96.)
29 (35 ILCS 110/2a) (from Ch. 120, par. 439.32a)
30 Section 5-75. Pollution control facilities. Sec. 2a.
31 "Pollution control facilities" means any system, method,
32 construction, device or appliance appurtenant thereto (i)
33 used in this State and acquired as an incident to the
-897- LRB9000671KDdvA
1 purchase of a service from a serviceman, (ii) transferred by
2 a serviceman, or (iii) sold, used, or intended: (I) for the
3 primary purpose of eliminating, preventing, or reducing air
4 and water pollution as the term "air pollution" or "water
5 pollution" is defined in the the "Environmental Protection
6 Act", enacted by the 76th General Assembly, or (II) for the
7 primary purpose of treating, pretreating, modifying or
8 disposing of any potential solid, liquid or gaseous pollutant
9 which if released without such treatment, pretreatment,
10 modification or disposal might be harmful, detrimental or
11 offensive to human, plant or animal life, or to property.
12 Section 30-5. Pollution control facilities. The
13 purchase, employment and or transfer of such tangible
14 personal property as pollution control facilities, as defined
15 in Section 5-75, is not (i) a purchase, use or sale of
16 service or of tangible personal property or (ii) a purchase,
17 use, or sale of service, but shall be deemed to be intangible
18 personal property within the meaning of this Act.
19 (Source: P.A. 76-2248.)
20 (35 ILCS 110/2b) (from Ch. 120, par. 439.32b)
21 Section 5-60. Low sulfur dioxide emission coal fueled
22 devices. Sec. 2b. "Low sulfur dioxide emission coal fueled
23 devices" means any device sold or used or intended for the
24 purpose of burning, combusting or converting locally
25 available coal in a manner which eliminates or significantly
26 reduces the need for additional sulfur dioxide abatement that
27 would otherwise be required under State or federal air
28 emission standards. Such device includes all machinery,
29 equipment, structures and all related apparatus of a coal
30 gasification facility, including coal feeding equipment,
31 designed to convert locally available coal into a low sulfur
32 gaseous fuel and to manage all waste and byproduct streams.
-898- LRB9000671KDdvA
1 Section 30-15. Low sulfur dioxide emission coal fueled
2 devices. The purchase, employment and transfer of such
3 tangible personal property as low sulfur dioxide emission
4 coal fueled devices, as defined in Section 5-60, is not a
5 purchase, use, or sale of tangible personal property.
6 Section 90-45. Low sulfur dioxide emission coal fueled
7 devices; declaratory provisions. The This amendatory
8 provisions of Public Act 82-672 concerning low sulfur dioxide
9 emission coal fueled devices, as those provisions appeared in
10 Section 1a-1 of the Retailers' Occupation Tax Act, Section
11 2a-1 of the Use Tax Act, Section 2b of the Service Occupation
12 Tax Act, and Section 2b of the Service Use Tax Act, (now
13 Sections 5-60 and 30-5 of this Code) are Act of 1981 is not
14 intended to nor do they does it make any change in the
15 meaning of any provision in those Sections this Section but
16 are is intended to remove possible ambiguities, thereby
17 confirming the existing meaning of those Sections this
18 Section in effect prior to October 28, the effective date of
19 this amendatory Act of 1981.
20 (Source: P.A. 82-672.)
21 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
22 Section 25-5. Sec. 3. Tax imposed. A tax is imposed
23 upon the privilege of using in this State real or tangible
24 personal property acquired as an incident to the purchase of
25 a service from a serviceman, including computer software, and
26 including photographs, negatives, and positives that are the
27 product of photoprocessing, but not including products of
28 photoprocessing produced for use in motion pictures for
29 public commercial exhibition. The tax imposed in this Article
30 shall be known as the "service use tax".
31 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
32 86-1028; 86-1475; 87-879.)
-899- LRB9000671KDdvA
1 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
2 Section 30-165. Personal property sold for the benefit
3 of persons 65 years of age or older. For purposes of the
4 taxes imposed by this Code, Sec. 3-5. Exemptions. Use of
5 the following tangible personal property is exempt from the
6 tax imposed by this Act: (1) personal property sold by or
7 purchased from a corporation, society, association,
8 foundation, institution, or organization, other than a
9 limited liability company, that is organized and operated as
10 a not-for-profit service enterprise for the benefit of
11 persons 65 years of age or older if the personal property was
12 not purchased by the enterprise for the purpose of resale by
13 the enterprise is exempt.
14 Section 30-175. County fair association.
15 (a) For purposes of the retailers' occupation tax,
16 personal property sold to an Illinois county fair association
17 for use in conducting, operating, or promoting the county
18 fair is exempt.
19 (b) For purposes of the use tax, the service occupation
20 tax, and the service use tax, (2) personal property purchased
21 by a not-for-profit non-profit Illinois county fair
22 association for use in conducting, operating, or promoting
23 the county fair is exempt.
24 Section 30-160. Personal property sold to a
25 not-for-profit music or dramatic arts organization. For
26 purposes of the taxes imposed by this Code, (3) personal
27 property sold to or purchased by a not-for-profit music or
28 dramatic arts organization that establishes, by proof
29 required by the Department by rule, that it has received an
30 exemption under Section 501(c)(3) of the Internal Revenue
31 Code and that is organized and operated for the presentation
32 of live public performances of musical or theatrical works on
-900- LRB9000671KDdvA
1 a regular basis is exempt.
2 Section 30-205. Legal tender. For purposes of the taxes
3 imposed by this Code, (4) legal tender, currency, medallions,
4 or gold or silver coinage issued by the State of Illinois,
5 the government of the United States of America, or the
6 government of any foreign country, and bullion are exempt.
7 Section 30-90. Graphic arts machinery and equipment.
8 For purposes of the taxes imposed by this Code, (5) graphic
9 arts machinery and equipment, including repair and
10 replacement parts, both new and used, and including that
11 manufactured on special order or purchased for lease,
12 certified by the purchaser to be used primarily for graphic
13 arts production is exempt.
14 Section 30-155. Personal property sold by students. For
15 purposes of the taxes imposed by this Code, (6) personal
16 property sold by or purchased from a teacher-sponsored
17 student organization affiliated with an elementary or
18 secondary school located in Illinois is exempt.
19 Section 30-65. Farm machinery and equipment. For
20 purposes of the taxes imposed by this Code, (7) farm
21 machinery and equipment, both new and used, including that
22 manufactured on special order, certified by the purchaser to
23 be used primarily for production agriculture or State or
24 federal agricultural programs, including individual
25 replacement parts for the machinery and equipment, and
26 including machinery and equipment purchased for lease, but
27 excluding motor vehicles required to be registered under the
28 Illinois Vehicle Code is exempt.
29 Section 30-125. Petroleum products sold to air carrier.
-901- LRB9000671KDdvA
1 For purposes of the taxes imposed by this Code, (8) fuel and
2 petroleum products sold to or used by an air common carrier,
3 certified by the carrier to be used for consumption,
4 shipment, or storage in the conduct of its business as an air
5 common carrier, for a flight destined for or returning from a
6 location or locations outside the United States without
7 regard to previous or subsequent domestic stopovers are
8 exempt.
9 Section 30-200. Mandatory service charge. For purposes
10 of the taxes imposed by this Code, (9) proceeds of mandatory
11 service charges separately stated on customers' bills for the
12 purchase and consumption of food and beverages acquired as an
13 incident to the purchase of a service from a serviceman, to
14 the extent that the proceeds of the service charge are in
15 fact turned over as tips or as a substitute for tips to the
16 employees who participate directly in preparing, serving,
17 hosting or cleaning up the food or beverage function with
18 respect to which the service charge is imposed are exempt.
19 Section 30-75. Oil field equipment. For purposes of the
20 taxes imposed by this Code, (10) oil field exploration,
21 drilling, and production equipment, including (i) rigs and
22 parts of rigs, rotary rigs, cable tool rigs, and workover
23 rigs, (ii) pipe and tubular goods, including casing and drill
24 strings, (iii) pumps and pump-jack units, (iv) storage tanks
25 and flow lines, (v) any individual replacement part for oil
26 field exploration, drilling, and production equipment, and
27 (vi) machinery and equipment purchased for lease; but
28 excluding motor vehicles required to be registered under the
29 Illinois Vehicle Code is exempt.
30 Section 30-85. Photoprocessing machinery and equipment.
31 For purposes of the taxes imposed by this Code, (11) proceeds
-902- LRB9000671KDdvA
1 from the sale of photoprocessing machinery and equipment,
2 including repair and replacement parts, both new and used,
3 including that manufactured on special order, certified by
4 the purchaser to be used primarily for photoprocessing, and
5 including photoprocessing machinery and equipment purchased
6 for lease is exempt.
7 Section 30-80. Coal exploration equipment. For purposes
8 of the taxes imposed by this Code, (12) coal exploration,
9 mining, offhighway hauling, processing, maintenance, and
10 reclamation equipment, including replacement parts and
11 equipment, and including equipment purchased for lease, but
12 excluding motor vehicles required to be registered under the
13 Illinois Vehicle Code is exempt.
14 Section 30-55. Semen. For purposes of the taxes imposed
15 by this Code, (13) semen used for artificial insemination of
16 livestock for direct agricultural production is exempt.
17 Section 30-50. Horses. For purposes of the taxes
18 imposed by this Code, (14) horses, or interests in horses,
19 registered with and meeting the requirements of any of the
20 Arabian Horse Club Registry of America, Appaloosa Horse Club,
21 American Quarter Horse Association, United States Trotting
22 Association, or Jockey Club, as appropriate, used for
23 purposes of breeding or racing for prizes are exempt.
24 Section 30-185. Computers for hospitals.
25 (a) For purposes of the taxes imposed by this Code, (15)
26 computers and communications equipment utilized for any
27 hospital purpose and equipment used in the diagnosis,
28 analysis, or treatment of hospital patients sold to purchased
29 by a lessor who leases the equipment, under a lease of one
30 year or longer executed or in effect, for purposes of the
-903- LRB9000671KDdvA
1 retailers' occupation tax and the service occupation tax, at
2 the time of the purchase, or, for purposes of the use tax and
3 the service use tax, at the time the lessor would otherwise
4 be subject to the tax imposed by Article 15 or Article 25
5 this Act, to a hospital that has been issued an active tax
6 exemption identification number by the Department under
7 Section 35-60 are exempt 1g of the Retailers' Occupation Tax
8 Act.
9 (b) For purposes of the use tax and the service use tax,
10 if the equipment is leased in a manner that does not qualify
11 for this exemption or is used in any other non-exempt manner,
12 the lessor shall be liable for the tax imposed under Article
13 15 or Article 25 this Act or the Use Tax Act, as the case may
14 be, based on the fair market value of the property at the
15 time the non-qualifying use occurs. No lessor shall collect
16 or attempt to collect an amount (however designated) that
17 purports to reimburse that lessor for the tax imposed by
18 Article 15 or Article 25 this Act or the Use Tax Act, as the
19 case may be, if the tax has not been paid by the lessor. If
20 a lessor improperly collects any such amount from the lessee,
21 the lessee shall have a legal right to claim a refund of that
22 amount from the lessor. If, however, that amount is not
23 refunded to the lessee for any reason, the lessor is liable
24 to pay that amount to the Department.
25 Section 30-190. Personal property sold to lessor for
26 lease to governmental body.
27 (a) For purposes of the taxes imposed by this Code, (16)
28 personal property sold to purchased by a lessor who leases
29 the property, under a lease of one year or longer executed or
30 in effect, for purposes of the retailers' occupation tax and
31 the service occupation tax, at the time of the purchase, or,
32 for purposes of the use tax and the service use tax, at the
33 time the lessor would otherwise be subject to the taxes tax
-904- LRB9000671KDdvA
1 imposed by Article 15 or Article 25 this Act, to a
2 governmental body that has been issued an active tax
3 exemption identification number by the Department under
4 Section 35-60 is exempt 1g of the Retailers' Occupation Tax
5 Act.
6 (b) For purposes of the use tax and the service use tax,
7 if the property is leased in a manner that does not qualify
8 for this exemption or is used in any other non-exempt manner,
9 the lessor shall be liable for the tax imposed under Article
10 15 or Article 25 this Act or the Use Tax Act, as the case may
11 be, based on the fair market value of the property at the
12 time the non-qualifying use occurs. No lessor shall collect
13 or attempt to collect an amount (however designated) that
14 purports to reimburse that lessor for the tax imposed by
15 Article 15 or Article 25 this Act or the Use Tax Act, as the
16 case may be, if the tax has not been paid by the lessor. If
17 a lessor improperly collects any such amount from the lessee,
18 the lessee shall have a legal right to claim a refund of that
19 amount from the lessor. If, however, that amount is not
20 refunded to the lessee for any reason, the lessor is liable
21 to pay that amount to the Department.
22 Section 30-180. Personal property donated for disaster
23 relief. For purposes of the taxes imposed by this Code, (17)
24 beginning with taxable years ending on or after December 31,
25 1995 and ending with taxable years ending on or before
26 December 31, 2004, personal property that is donated for
27 disaster relief to be used in a State or federally declared
28 disaster area in Illinois or bordering Illinois by a
29 manufacturer or retailer that is registered in this State to
30 a corporation, society, association, foundation, or
31 institution that has been issued a sales tax exemption
32 identification number by the Department, in accordance with
33 Section 35-60, that assists victims of the disaster who
-905- LRB9000671KDdvA
1 reside within the declared disaster area is exempt.
2 Section 30-45. Personal property used in infrastructure
3 repairs. For purposes of the taxes imposed by this Code,
4 (18) beginning with taxable years ending on or after December
5 31, 1995 and ending with taxable years ending on or before
6 December 31, 2004, personal property that is used in the
7 performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and retention
12 facilities, and sewage treatment facilities, resulting from a
13 State or federally declared disaster in Illinois or bordering
14 Illinois when such repairs are initiated on facilities
15 located in the declared disaster area within 6 months after
16 the disaster is exempt.
17 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
18 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
19 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
20 eff. 8-9-96; revised 8-21-96.)
21 (35 ILCS 110/3-5.5)
22 Section 30-195. Sec. 3-5.5. Food and drugs sold by
23 not-for-profit organizations; exemption.
24 (a) The Department shall not collect the 1% tax imposed
25 on food for human consumption that is to be consumed off the
26 premises where it is sold (other than alcoholic beverages,
27 soft drinks, and food that has been prepared for immediate
28 consumption) and prescription and nonprescription medicines,
29 drugs, medical appliances, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use from any not-for-profit organization, that sells food in
32 a food distribution program at a price below the retail cost
-906- LRB9000671KDdvA
1 of the food to purchasers who, as a condition of
2 participation in the program, are required to perform
3 community service, located in a county or municipality that
4 notifies the Department, in writing, that the county or
5 municipality does not want the tax to be collected from any
6 of such organizations located in the county or municipality.
7 (b) For purposes of the service occupation tax, food for
8 human consumption that is to be consumed off the premises
9 where it is sold (other than alcoholic beverages, soft drinks
10 and food that has been prepared for immediate consumption)
11 and prescription and nonprescription medicines, drugs,
12 medical appliances, and insulin, urine testing materials,
13 syringes, and needles used by diabetics, for human use, when
14 purchased for use by a person receiving medical assistance
15 under Article 5 of the Illinois Public Aid Code who resides
16 in a licensed long-term care facility, as defined in the
17 Nursing Home Care Act is exempt.
18 (Source: P.A. 88-374.)
19 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
20 Section 25-15. Sec. 3-10. Rate of tax. Unless otherwise
21 provided in this Section, the tax imposed by this Article Act
22 is at the rate of 6.25% of the selling price of tangible
23 personal property transferred as an incident to the sale of
24 service, but, for the purpose of computing this tax, in no
25 event shall the selling price be less than the cost price of
26 the property to the serviceman.
27 With respect to gasohol, as defined in Section 5-40 the
28 Use Tax Act, the tax imposed by this Article Act applies to
29 70% of the selling price of property transferred as an
30 incident to the sale of service on or after January 1, 1990,
31 and before July 1, 1999, and to 100% of the selling price
32 thereafter, except that from July 1, 1997 to July 1, 1999,
33 the rate shall be 85% for gasohol sold in this State during
-907- LRB9000671KDdvA
1 the 12 months beginning July 1 following any calendar year
2 for which the Department has determined that the percentages
3 in Section 10 of the Gasohol Fuels Tax Abatement Act have not
4 been met.
5 At the election of any registered serviceman made for
6 each fiscal year, sales of service in which the aggregate
7 annual cost price of tangible personal property transferred
8 as an incident to the sales of service is less than 35%, or
9 75% in the case of servicemen transferring prescription drugs
10 or servicemen engaged in graphic arts production, of the
11 aggregate annual total gross receipts from all sales of
12 service, the tax imposed by this Article Act shall be based
13 on the serviceman's cost price of the tangible personal
14 property transferred as an incident to the sale of those
15 services.
16 The tax shall be imposed at the rate of 1% on food
17 prepared for immediate consumption and transferred incident
18 to a sale of service subject to this Article or Article 20
19 Act or the Service Occupation Tax Act by an entity licensed
20 under the Hospital Licensing Act or the Nursing Home Care
21 Act. The tax shall also be imposed at the rate of 1% on food
22 for human consumption that is to be consumed off the premises
23 where it is sold (other than alcoholic beverages, soft
24 drinks, and food that has been prepared for immediate
25 consumption and is not otherwise included in this paragraph)
26 and prescription and nonprescription medicines, drugs,
27 medical appliances, modifications to a motor vehicle for the
28 purpose of rendering it usable by a disabled person, and
29 insulin, urine testing materials, syringes, and needles used
30 by diabetics, for human use. For the purposes of this
31 Section, the term "soft drinks" means any complete, finished,
32 ready-to-use, non-alcoholic drink, whether carbonated or not,
33 including but not limited to soda water, cola, fruit juice,
34 vegetable juice, carbonated water, and all other preparations
-908- LRB9000671KDdvA
1 commonly known as soft drinks of whatever kind or description
2 that are contained in any closed or sealed bottle, can,
3 carton, or container, regardless of size. "Soft drinks" does
4 not include coffee, tea, non-carbonated water, infant
5 formula, milk or milk products as defined in the Grade A
6 Pasteurized Milk and Milk Products Act, or drinks containing
7 50% or more natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Code Act,
9 "food for human consumption that is to be consumed off the
10 premises where it is sold" includes all food sold through a
11 vending machine, except soft drinks and food products that
12 are dispensed hot from a vending machine, regardless of the
13 location of the vending machine.
14 If the property that is acquired from a serviceman is
15 acquired outside Illinois and used outside Illinois before
16 being brought to Illinois for use here and is taxable under
17 this Article Act, the "selling price" on which the tax is
18 computed shall be reduced by an amount that represents a
19 reasonable allowance for depreciation for the period of prior
20 out-of-state use.
21 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
22 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
23 (35 ILCS 110/3-15) (from Ch. 120, par. 439.33-15)
24 Section 5-70. Sec. 3-15. Photoprocessing. For purposes
25 of the tax imposed on photographs, negatives, and positives
26 by this Code Act, "photoprocessing" includes, but is not
27 limited to, developing films, positives, negatives, and
28 transparencies, and tinting, coloring, making, and enlarging
29 prints. Photoprocessing does not include color separation,
30 typesetting, and platemaking by photographic means in the
31 graphic arts industry and does not include any procedure,
32 process, or activity connected with the creation of the
33 images on the film from which the negatives, positives, or
-909- LRB9000671KDdvA
1 photographs are derived. The charge for in-house
2 photoprocessing may not be less than the photoprocessor's
3 cost price of materials. In transactions in which products
4 of photoprocessing are sold in conjunction with other
5 services, if a charge for the photoprocessing component is
6 not separately stated, tax is imposed on 50% of the entire
7 selling price unless the sale is made by a professional
8 photographer, in which case tax is imposed on 10% of the
9 entire selling price.
10 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
11 86-1028; 86-1475.)
12 (35 ILCS 110/3-20) (from Ch. 120, par. 439.33-20)
13 Section 5-15. Sec. 3-20. Bullion. For purposes of the
14 exemption pertaining to bullion, "Bullion" means gold,
15 silver, or platinum in a bulk state with a purity of not less
16 than 980 parts per 1,000.
17 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
18 86-1028; 86-1475.)
19 (35 ILCS 110/3-25) (from Ch. 120, par. 439.33-25)
20 Section 5-20. Sec. 3-25. Computer software. For the
21 purposes of this Act, "Computer software" means a set of
22 statements, data, or instructions to be used directly or
23 indirectly in a computer in order to bring about a certain
24 result in any form in which those statements, data, or
25 instructions may be embodied, transmitted, or fixed, by any
26 method now known or hereafter developed, regardless of
27 whether the statements, data, or instructions are capable of
28 being perceived by or communicated to humans, and includes
29 prewritten or canned software that is held for repeated sale
30 or lease, and all associated documentation and materials, if
31 any, whether contained on magnetic tapes, discs, cards, or
32 other devices or media, but does not include software that is
-910- LRB9000671KDdvA
1 adapted to specific individualized requirements of a
2 purchaser, custom-made and modified software designed for a
3 particular or limited use by a purchaser, or software used to
4 operate exempt machinery and equipment used in the process of
5 manufacturing or assembling tangible personal property for
6 wholesale or retail sale or lease.
7 For the purposes of this Code Act, computer software
8 shall be considered to be tangible personal property.
9 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
10 86-1028; 86-1475.)
11 (35 ILCS 110/3-30) (from Ch. 120, par. 439.33-30)
12 Section 5-45. Sec. 3-30. Graphic arts production. For
13 the purposes of this Act, "Graphic arts production" means
14 printing by one or more of the common processes or graphic
15 arts production services as those processes and services are
16 defined in the Major Group 27 of the U.S. Standard Industrial
17 Classification Manual.
18 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
19 86-1028; 86-1475.)
20 (35 ILCS 110/3-35) (from Ch. 120, par. 439.33-35)
21 Section 5-80. Sec. 3-35. Production agriculture. For
22 purposes of this Act, "Production agriculture" means the
23 raising of or the propagation of livestock; crops for sale
24 for human consumption; crops for livestock consumption; and
25 production seed stock grown for the propagation of feed
26 grains and the husbandry of animals or for the purpose of
27 providing a food product, including the husbandry of blood
28 stock as a main source of providing a food product.
29 "Production agriculture" also means animal husbandry,
30 floriculture, aquaculture, horticulture, and viticulture.
31 (Source: P.A. 89-220, eff. 1-1-96.)
-911- LRB9000671KDdvA
1 (35 ILCS 110/3-40) (from Ch. 120, par. 439.33-40)
2 Section 25-20. Sec. 3-40. Collection. The tax imposed
3 by this Article Act shall be collected at the time of
4 purchase in the manner prescribed by the Department from the
5 user by a serviceman maintaining a place of business in this
6 State or by a serviceman authorized by the Department under
7 Section 60-10 7 of this Code Act, and the tax shall be
8 remitted to the Department as provided in Sections 50-5
9 through 50-140 of this Code Section 9 of this Act.
10 The tax imposed by this Article Act that is not paid to a
11 serviceman under this Section shall be paid to the Department
12 directly by any person using the property within this State
13 as provided in Section 50-155 10 of this Code Act.
14 If a serviceman collects service use tax measured by
15 receipts or selling prices that are not subject to service
16 use tax, or if a serviceman, in collecting service use tax
17 measured by receipts or selling prices that are subject to
18 tax under this Article Act, collects more from the purchaser
19 than the required amount of the service use tax on the
20 transaction, the purchaser shall have a legal right to claim
21 a refund of that amount from the serviceman. If, however,
22 that amount is not refunded to the purchaser for any reason,
23 the serviceman is liable to pay that amount to the
24 Department. This paragraph does not apply to an amount
25 collected by the serviceman as service use tax on receipts or
26 selling prices that are subject to tax under this Article Act
27 as long as the collection is made in compliance with the tax
28 collection brackets prescribed by the Department in its rules
29 and regulations.
30 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
31 86-1028; 86-1475.)
32 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
33 Section 30-220. Sec. 3-45. Multistate exemption.
-912- LRB9000671KDdvA
1 (a) To prevent actual or likely multistate taxation, the
2 taxes tax imposed by Article 15 and Article 25 do this Act
3 does not apply to the use of tangible personal property in
4 this State under the following circumstances:
5 (1) (a) The use, in this State, of tangible
6 personal property acquired outside this State by a
7 nonresident individual and brought into this State by the
8 individual for his or her own use while temporarily
9 within this State or while passing through this State.
10 (b) The use, in this State, of property that is acquired
11 outside this State and that is moved into this State for use
12 as rolling stock moving in interstate commerce.
13 (2) (c) The use, in this State, of tangible
14 personal property that is acquired outside this State and
15 caused to be brought into this State by a person who has
16 already paid a tax in another state in respect to the
17 sale, purchase, or use of that property, to the extent of
18 the amount of the tax properly due and paid in the other
19 state.
20 (3) (d) The temporary storage, in this State, of
21 tangible personal property that is acquired outside this
22 State and that, after being brought into this State and
23 stored here temporarily, is used solely outside this
24 State or is physically attached to or incorporated into
25 other tangible personal property that is used solely
26 outside this State, or is altered by converting,
27 fabricating, manufacturing, printing, processing, or
28 shaping, and, as altered, is used solely outside this
29 State.
30 (b) To prevent actual or likely multistate taxation, the
31 tax imposed by Article 15 does not apply to the temporary
32 storage in this State of building materials and fixtures that
33 are acquired either in this State or outside this State by an
34 Illinois registered combination retailer and construction
-913- LRB9000671KDdvA
1 contractor, and that the purchaser thereafter uses outside
2 this State by incorporating that property into real estate
3 located outside this State.
4 (c) To prevent actual or likely multistate taxation, the
5 tax imposed by Article 25 does not apply to the use, in this
6 State, of property that is acquired outside this State and
7 that is moved into this State for use as rolling stock moving
8 in interstate commerce.
9 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
10 86-1028; 86-1475.)
11 (35 ILCS 110/3-50) (from Ch. 120, par. 439.33-50)
12 Section 30-150. Sec. 3-50. Rolling stock exemption. The
13 rolling stock exemption applies to rolling stock used by an
14 interstate carrier for hire, even just between points in
15 Illinois, if the rolling stock transports, for hire, persons
16 whose journeys or property whose shipments originate or
17 terminate outside Illinois.
18 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
19 86-1028; 86-1475.)
20 (35 ILCS 110/3-55) (from Ch. 120, par. 439.33-55)
21 Section 25-25. Sec. 3-55. S. O. T. nontaxability. If
22 the serviceman would not be taxable under Article 20 of this
23 Code the Service Occupation Tax Act despite all elements of
24 his sale of service occurring in Illinois, then the tax
25 imposed by this Article Act does not apply to the use in this
26 State of the property transferred as a necessary incident to
27 the sale of service.
28 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
29 86-1028; 86-1475.)
30 (35 ILCS 110/3-60) (from Ch. 120, par. 439.33-60)
31 Section 30-225. Sec. 3-60. Property acquired by
-914- LRB9000671KDdvA
1 nonresident. The taxes tax imposed by Article 15 and Article
2 25 do this Act does not apply to the use, in this State, of
3 tangible personal property that is acquired outside this
4 State by a nonresident individual who then brings the
5 property to this State for use here and who has used the
6 property outside this State for at least 3 months before
7 bringing the property to this State.
8 Where a business that is not operated in Illinois, but is
9 operated in another State, is moved to Illinois or opens up
10 an office, plant, or other business facility in Illinois,
11 that business shall not be taxed on its use, in Illinois, of
12 used tangible personal property, other than, for purposes of
13 the use tax only, items of tangible personal property that
14 must be titled or registered with the State of Illinois or
15 whose registration with the United States Government must be
16 filed with the State of Illinois, that the business bought
17 outside Illinois and used outside Illinois in the operation
18 of the business for at least 3 months before moving the used
19 property to Illinois for use in this State.
20 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
21 86-1028; 86-1475.)
22 (35 ILCS 110/3-65) (from Ch. 120, par. 439.33-65)
23 Section 90-15. Sec. 3-65. Liability because of
24 amendatory Act.
25 (a) Revisions in Section 2 (which became Sections 2
26 through 2-65) of the Retailers' Occupation Tax Act by Public
27 Act 85-1135 do not affect tax liability that arose before
28 January 1, 1990.
29 (b) Revisions in Section 3 (which became Sections 3
30 through 3-80) of the Use Tax Act by Public Act 85-1135 do not
31 affect tax liability that arose before January 1, 1990.
32 (c) Revisions in Section 3 (which became Sections 3
33 through 3-50) of the Service Occupation Tax Act by Public Act
-915- LRB9000671KDdvA
1 85-1135 do not affect tax liability that arose before January
2 1, 1990.
3 (d) Revisions in Section 3 (which became now Sections 3
4 through 3-65) of the Service Use Tax Act by Public Act
5 85-1135 do not affect tax liability that arose before January
6 1, 1990.
7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
8 86-1028; 86-1475.)
9 (35 ILCS 110/3-70)
10 Section 30-230. Sec. 3-70. Manufacturer's Purchase
11 Credit. For purposes of the use tax and the service use tax,
12 for purchases of machinery and equipment made on and after
13 January 1, 1995, a purchaser of manufacturing machinery and
14 equipment that qualifies for the exemption provided by
15 Section 30-95 2 of this Code Act earns a credit in an amount
16 equal to a fixed percentage of the tax which would have been
17 incurred under Article 15 or 25 of this Code this Act on
18 those purchases. For purchases of graphic arts machinery and
19 equipment made on or after July 1, 1996, a purchaser purchase
20 of graphic arts machinery and equipment that qualifies for
21 the exemption provided by paragraph (5) of Section 30-90 3-5
22 of this Code Act earns a credit in an amount equal to a fixed
23 percentage of the tax that would have been incurred under
24 Article 15 or 25 of this Code this Act on those purchases.
25 The credit earned for the purchases purchase of manufacturing
26 machinery and equipment or and graphic arts machinery and
27 equipment shall be referred to as the Manufacturer's Purchase
28 Credit. A graphic arts producer is a person engaged in
29 graphic arts production as defined in Section 5-45 of this
30 Code 3-30 of the Service Occupation Tax Act. Beginning July
31 1, 1996, all references in this Section to manufacturers or
32 manufacturing shall also be deemed to refer to graphic arts
33 producers or graphic arts production.
-916- LRB9000671KDdvA
1 The amount of credit shall be a percentage of the tax
2 that would have been incurred on the purchase of the
3 manufacturing machinery and equipment or graphic arts
4 machinery and equipment if the exemptions provided by Section
5 30-90 or 30-95 2 or paragraph (5) of Section 3-5 of this Code
6 Act had not been applicable. The percentage shall be as
7 follows:
8 (1) 15% for purchases made on or before June 30,
9 1995.
10 (2) 25% for purchases made after June 30, 1995, and
11 on or before June 30, 1996.
12 (3) 40% for purchases made after June 30, 1996, and
13 on or before June 30, 1997.
14 (4) 50% for purchases made on or after July 1,
15 1997.
16 A purchaser of production related tangible personal
17 property desiring to use the Manufacturer's Purchase Credit
18 shall certify to the seller that the purchaser is satisfying
19 all or part of the liability under Article 15 or Article 25
20 of this Code the Use Tax Act or the Service Use Tax Act that
21 is due on the purchase of the production related tangible
22 personal property by use of a Manufacturer's Purchase Credit.
23 The Manufacturer's Purchase Credit certification must be
24 dated and shall include the name and address of the
25 purchaser, the purchaser's registration number, if
26 registered, the credit being applied, and a statement that
27 the State use tax or service use tax liability is being
28 satisfied with the manufacturer's or graphic arts producer's
29 accumulated purchase credit. Certification may be
30 incorporated into the manufacturer's or graphic arts
31 producer's purchase order. Manufacturer's Purchase Credit
32 certification by the manufacturer or graphic arts producer
33 may be used to satisfy the retailer's or serviceman's
34 liability under Article 10 or Article 20 of this Code the
-917- LRB9000671KDdvA
1 Retailers' Occupation Tax Act or Service Occupation Tax Act
2 for the credit claimed, not to exceed 6.25% of the receipts
3 subject to tax from a qualifying purchase, but only if the
4 retailer or serviceman reports the Manufacturer's Purchase
5 Credit claimed as required by the Department. The
6 Manufacturer's Purchase Credit earned by purchase of exempt
7 manufacturing machinery and equipment or graphic arts
8 machinery and equipment is a non-transferable credit. A
9 manufacturer or graphic arts producer that enters into a
10 contract involving the installation of tangible personal
11 property into real estate within a manufacturing or graphic
12 arts production facility may authorize a construction
13 contractor to utilize credit accumulated by the manufacturer
14 or graphic arts producer to purchase the tangible personal
15 property. A manufacturer or graphic arts producer intending
16 to use accumulated credit to purchase such tangible personal
17 property shall execute a written contract authorizing the
18 contractor to utilize a specified dollar amount of credit.
19 The contractor shall furnish the supplier with the
20 manufacturer's or graphic arts producer's name, registration
21 or resale number, and a statement that a specific amount of
22 the use tax or service use tax liability, not to exceed 6.25%
23 of the selling price, is being satisfied with the credit. The
24 manufacturer or graphic arts producer shall remain liable to
25 timely report all information required by the annual Report
26 of Manufacturer's Purchase Credit Used for all credit
27 utilized by a construction contractor.
28 The Manufacturer's Purchase Credit may be used to satisfy
29 liability under Article 15 or Article 25 of this Code the Use
30 Tax Act or the Service Use Tax Act due on the purchase of
31 production related tangible personal property (including
32 purchases by a manufacturer, by a graphic arts producer, or
33 by a lessor who rents or leases the use of the property to a
34 manufacturer or graphic arts producer) that does not
-918- LRB9000671KDdvA
1 otherwise qualify for the manufacturing machinery and
2 equipment exemption or the graphic arts machinery and
3 equipment exemption. "Production related tangible personal
4 property" means (i) all tangible personal property used or
5 consumed by the purchaser in a manufacturing facility in
6 which a manufacturing process described in Section 30-100 of
7 this Code 2-45 of the Retailers' Occupation Tax Act takes
8 place, including tangible personal property purchased for
9 incorporation into real estate within a manufacturing
10 facility and including, but not limited to, tangible personal
11 property used or consumed in activities such as preproduction
12 pre-production material handling, receiving, quality control,
13 inventory control, storage, staging, and packaging for
14 shipping and transportation purposes; (ii) all tangible
15 personal property used or consumed by the purchaser in a
16 graphic arts facility in which graphic arts production as
17 described in Section 5-45 of this Code 2-30 of the Retailers'
18 Occupation Tax Act takes place, including tangible personal
19 property purchased for incorporation into real estate within
20 a graphic arts facility and including, but not limited to,
21 all tangible personal property used or consumed in activities
22 such as graphic arts preliminary or pre-press production,
23 pre-production material handling, receiving, quality control,
24 inventory control, storage, staging, sorting, labeling,
25 mailing, tying, wrapping, and packaging; and (iii) all
26 tangible personal property used or consumed by the purchaser
27 for research and development. "Production related tangible
28 personal property" does not include (i) tangible personal
29 property used, within or without a manufacturing or graphic
30 arts facility, in sales, purchasing, accounting, fiscal
31 management, marketing, personnel recruitment or selection, or
32 landscaping or (ii) tangible personal property required to be
33 titled or registered with a department, agency, or unit of
34 federal, state, or local government. The Manufacturer's
-919- LRB9000671KDdvA
1 Purchase Credit may be used to satisfy the tax arising either
2 from the purchase of machinery and equipment on or after
3 January 1, 1995 for which the manufacturing machinery and
4 equipment exemption provided by Section 30-95 2 of this Code
5 Act was erroneously claimed, or the purchase of machinery and
6 equipment on or after July 1, 1996 for which the exemption
7 provided by paragraph (5) of Section 30-90 3-5 of this Code
8 Act was erroneously claimed, but not in satisfaction of
9 penalty, if any, and interest for failure to pay the tax when
10 due. A purchaser of production related tangible personal
11 property who is required to pay Illinois use tax or service
12 use tax on the purchase directly to the Department may
13 utilize the Manufacturer's Purchase Credit in satisfaction of
14 the tax arising from that purchase, but not in satisfaction
15 of penalty and interest. A purchaser who uses the
16 Manufacturer's Purchase Credit to purchase property which is
17 later determined not to be production related tangible
18 personal property may be liable for tax, penalty, and
19 interest on the purchase of that property as of the date of
20 purchase but shall be entitled to use the disallowed
21 Manufacturer's Purchase Credit, so long as it has not
22 expired, on qualifying purchases of production related
23 tangible personal property not previously subject to credit
24 usage. The Manufacturer's Purchase Credit earned by a
25 manufacturer or graphic arts producer expires the last day of
26 the second calendar year following the calendar year in which
27 the credit arose.
28 A purchaser earning Manufacturer's Purchase Credit shall
29 sign and file an annual Report of Manufacturer's Purchase
30 Credit Earned for each calendar year no later than the last
31 day of the sixth month following the calendar year in which a
32 Manufacturer's Purchase Credit is earned. A Report of
33 Manufacturer's Purchase Credit Earned shall be filed on forms
34 as prescribed or approved by the Department and shall state,
-920- LRB9000671KDdvA
1 for each month of the calendar year: (i) the total purchase
2 price of all purchases of exempt manufacturing or graphic
3 arts machinery on which the credit was earned; (ii) the total
4 State use tax or service use tax which would have been due on
5 those items; (iii) the percentage used to calculate the
6 amount of credit earned; (iv) the amount of credit earned;
7 and (v) such other information as the Department may
8 reasonably require. A purchaser earning Manufacturer's
9 Purchase Credit shall maintain records which identify, as to
10 each purchase of manufacturing or graphic arts machinery and
11 equipment on which the purchaser earned Manufacturer's
12 Purchase Credit, the vendor (including, if applicable, either
13 the vendor's registration number or Federal Employer
14 Identification Number), the purchase price, and the amount of
15 Manufacturer's Purchase Credit earned on each purchase.
16 A purchaser using Manufacturer's Purchase Credit shall
17 sign and file an annual Report of Manufacturer's Purchase
18 Credit Used for each calendar year no later than the last day
19 of the sixth month following the calendar year in which a
20 Manufacturer's Purchase Credit is used. A Report of
21 Manufacturer's Purchase Credit Used shall be filed on forms
22 as prescribed or approved by the Department and shall state,
23 for each month of the calendar year: (i) the total purchase
24 price of production related tangible personal property
25 purchased from Illinois suppliers; (ii) the total purchase
26 price of production related tangible personal property
27 purchased from out-of-state suppliers; (iii) the total amount
28 of credit used during such month; and (iv) such other
29 information as the Department may reasonably require. A
30 purchaser using Manufacturer's Purchase Credit shall maintain
31 records that identify, as to each purchase of production
32 related tangible personal property on which the purchaser
33 used Manufacturer's Purchase Credit, the vendor (including,
34 if applicable, either the vendor's registration number or
-921- LRB9000671KDdvA
1 Federal Employer Identification Number), the purchase price,
2 and the amount of Manufacturer's Purchase Credit used on each
3 purchase.
4 No annual report shall be filed before May 1, 1996. A
5 purchaser that fails to file an annual Report of
6 Manufacturer's Purchase Credit Earned or an annual Report of
7 Manufacturer's Purchase Credit Used by the last day of the
8 sixth month following the end of the calendar year shall
9 forfeit all Manufacturer's Purchase Credit for that calendar
10 year unless it establishes that its failure to file was due
11 to reasonable cause. Manufacturer's Purchase Credit reports
12 may be amended to report and claim credit on qualifying
13 purchases not previously reported at any time before the
14 credit would have expired, unless both the Department and the
15 purchaser have agreed to an extension of the statute of
16 limitations for the issuance of a notice of tax liability as
17 provided in Section 50-145 of this Code 4 of the Retailers'
18 Occupation Tax Act. If the time for assessment or refund has
19 been extended, then amended reports for a calendar year may
20 be filed at any time prior to the date to which the statute
21 of limitations for the calendar year or portion thereof has
22 been extended. No Manufacturer's Purchase Credit report filed
23 with the Department for periods prior to January 1, 1995
24 shall be approved. Manufacturer's Purchase Credit claimed on
25 an amended report may be used to satisfy tax liability under
26 Article 15 or Article 25 of this Code the Use Tax Act or the
27 Service Use Tax Act (i) on qualifying purchases of production
28 related tangible personal property made after the date the
29 amended report is filed or (ii) assessed by the Department on
30 qualifying purchases of production related tangible personal
31 property made in the case of manufacturers on or after
32 January 1, 1995, or in the case of graphic arts producers on
33 or after July 1, 1996.
34 If the purchaser is not the manufacturer or a graphic
-922- LRB9000671KDdvA
1 arts producer, but rents or leases the use of the property to
2 a manufacturer or a graphic arts producer, the purchaser may
3 earn, report, and use Manufacturer's Purchase Credit in the
4 same manner as a manufacturer or graphic arts producer.
5 A purchaser shall not be entitled to any Manufacturer's
6 Purchase Credit for a purchase that is required to be
7 reported and is not timely reported as provided in this
8 Section. A purchaser remains liable for (i) any tax that was
9 satisfied by use of a Manufacturer's Purchase Credit, as of
10 the date of purchase, if that use is not timely reported as
11 required in this Section and (ii) for any applicable
12 penalties and interest for failing to pay the tax when due.
13 (Source: P.A. 88-547, eff. 6-30-94; 89-89, eff. 6-30-95;
14 89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)
15 (35 ILCS 110/3-75)
16 Section 90-20. Sec. 3-75. Sunset of exemptions, credits,
17 and deductions. The application of every exemption, credit,
18 and deduction against taxes tax imposed by this Code Act that
19 becomes law after September 16, 1994 the effective date of
20 this amendatory Act of 1994 shall be limited by a reasonable
21 and appropriate sunset date. A taxpayer is not entitled to
22 take the exemption, credit, or deduction beginning on the
23 sunset date and thereafter. If a reasonable and appropriate
24 sunset date is not specified in the Public Act that creates
25 the exemption, credit, or deduction, a taxpayer shall not be
26 entitled to take the exemption, credit, or deduction
27 beginning 5 years after the effective date of the Public Act
28 creating the exemption, credit, or deduction and thereafter.
29 (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff. 8-4-95.)
30 (35 ILCS 110/3a) (from Ch. 120, par. 439.33a)
31 Section 25-30. Method of stating tax. Sec. 3a. The tax
32 imposed by this Article Act may be stated as a distinct item
-923- LRB9000671KDdvA
1 separate and apart from the selling price of the service, and
2 shall be so stated when requested by the buyer.
3 (Source: Laws 1961, p. 1757.)
4 (35 ILCS 110/3c) (from Ch. 120, par. 439.33c)
5 Section 5-25. Corporation, limited liability company,
6 society, association, foundation, or institution organized
7 and operated exclusively for educational purposes. Sec. 3c.
8 For purposes of this Act,
9 (a) A corporation, limited liability company, society,
10 association, foundation or institution organized and operated
11 exclusively for educational purposes shall include: all
12 tax-supported public schools; private schools which offer
13 systematic instruction in useful branches of learning by
14 methods common to public schools and which compare favorably
15 in their scope and intensity with the course of study
16 presented in tax-supported schools; vocational or technical
17 schools or institutes organized and operated exclusively to
18 provide a course of study of not less than 6 weeks duration
19 and designed to prepare individuals to follow a trade or to
20 pursue a manual, technical, mechanical, industrial, business
21 or commercial occupation.
22 However, a corporation, limited liability company,
23 society, association, foundation or institution organized and
24 operated for the purpose of offering professional, trade or
25 business seminars of short duration, self-improvement or
26 personality development courses, courses which are
27 avocational or recreational in nature, courses pursued
28 entirely by open circuit television or radio, correspondence
29 courses, or courses which do not provide specialized training
30 within with a specific vocational or technical field shall
31 not be considered to be organized and operated exclusively
32 for educational purposes.
33 (b) For purposes of the retailers' occupation tax, the
-924- LRB9000671KDdvA
1 use tax, and the service occupation tax, a corporation,
2 limited liability company, society, association, foundation,
3 or institution organized and operated exclusively for
4 educational purposes shall also include licensed day care
5 centers as defined in Section 2.09 of the Child Care Act of
6 1969 which are operated by a not-for-profit corporation,
7 society, association, foundation, institution, or
8 organization.
9 (Source: P.A. 88-480.)
10 (35 ILCS 110/3d) (from Ch. 120, par. 439.33d)
11 Section 25-35. Selling price of tangible personal
12 property transferred incident to a sale of service.
13 (a) Sec. 3d. (1) Except as provided in subsection (b)
14 paragraph (2) of this Section, the selling price of each item
15 of tangible personal property transferred incident to a sale
16 of service may be stated as a distinct item by the serviceman
17 to the service customer and the tax imposed by this Article
18 Act shall when collected be stated as a distinct item
19 separate and apart from the selling price of the tangible
20 personal property. If the selling price of each item of
21 tangible personal property transferred incidental to a sale
22 of service is not stated as a separate item on the
23 serviceman's billing to the service customer, then the tax
24 imposed by this Article Act shall be based on 50% of the
25 serviceman's entire billing to the service customer.
26 (b) (2) When a serviceman contracts to design, develop
27 and produce special order machinery or equipment, the tax
28 imposed by this Article Act shall be based on the
29 serviceman's cost price of the tangible personal property
30 transferred incident to the completion of the contract.
31 (Source: P.A. 85-1135.)
32 (35 ILCS 110/4) (from Ch. 120, par. 439.34)
-925- LRB9000671KDdvA
1 Section 90-25. Delivery in State.
2 (a) For purposes of the use tax and the service use tax,
3 Sec. 4. evidence that tangible personal property was sold by
4 any person for delivery to a person residing or engaged in
5 business in this State shall be prima facie evidence that
6 such tangible personal property was sold for use in this
7 State.
8 (b) For purposes of the service occupation tax, evidence
9 that tangible personal property was sold by any supplier for
10 delivery to a person residing or engaged in business in this
11 State shall be prima facie evidence that such tangible
12 personal property was sold for the purpose of resale as an
13 incident to a sale of service taxable under Article 20.
14 (Source: Laws 1961, p. 1757.)
15 (35 ILCS 110/5) (from Ch. 120, par. 439.35)
16 Section 60-20. Receipts; list of agents.
17 (a) For purposes of the use tax, except as to motor
18 vehicles and other items of tangible personal property that
19 must be titled or registered under an Illinois law, but that
20 cannot be so titled or registered without a use tax receipt
21 or exemption determination from the Department, every
22 retailer maintaining a place of business in this State and
23 making sales of tangible personal property for use in this
24 State (whether those sales are made within or without this
25 State) shall, when collecting the tax as provided in Section
26 15-20 of this Code from the purchaser, give to the purchaser
27 (if demanded by the purchaser) a receipt for the tax in the
28 manner and form prescribed by the Department.
29 (b) For purposes of the service occupation tax and the
30 service use tax, Sec. 5. every supplier or serviceman
31 maintaining a place of business in this State and (i) making
32 sales of tangible personal property for the purpose of resale
33 as an incident to the sale of service taxable under this Code
-926- LRB9000671KDdvA
1 or (ii) making sales of service involving the incidental
2 transfer of property for use in this State (whether those
3 sales are made within or without this State) shall, when
4 collecting the taxes tax as provided in Sections 20-20 and
5 25-20 Section 3-40 of this Code Act from the serviceman or
6 purchaser, give to the serviceman or purchaser, (if demanded
7 by the serviceman or purchaser,) a receipt for the tax in the
8 manner and form provided prescribed by the Department.
9 (c) A The receipt issued under this Section shall be
10 sufficient to relieve the purchaser or serviceman from
11 further liability for the tax to which the receipt may refer.
12 Each retailer, supplier, or serviceman shall list with the
13 Department the names and addresses of all of his or her
14 agents operating in this State and the location of any and
15 all of his or her distribution or sales houses, offices, or
16 other places of business in this State.
17 (Source: P.A. 86-1475.)
18 (35 ILCS 110/6) (from Ch. 120, par. 439.36)
19 Section 35-20. Certificate of registration; service use
20 tax. Sec. 6. A serviceman maintaining a place of business in
21 this State, if required to register for purposes of under the
22 retailers' occupation tax Act, for purposes of or under the
23 use tax act, or for purposes of under the service occupation
24 tax Act, need not obtain an additional certificate of
25 registration for purposes of the service use tax under this
26 Act, but shall be deemed to be sufficiently registered by
27 virtue of his being registered for purposes of under the
28 retailers' occupation tax Act, or under the use tax Act, or
29 under the service occupation tax Act. Every serviceman
30 maintaining a place of business in this State, if not
31 required to register for purposes of under the retailers'
32 occupation tax Act, or under the use tax Act, or under the
33 service occupation tax Act, shall apply to the Department
-927- LRB9000671KDdvA
1 (upon a form prescribed and furnished by the Department) for
2 a certificate of registration for purposes of the service use
3 tax under this Act.
4 Section 35-30. Issuance of certificate of registration;
5 sub-certificate of registration.
6 (a) Upon receipt of the application for certificate of
7 registration in proper form, and upon approval by the
8 Department of the security furnished by the applicant, the
9 Department shall issue to such applicant a certificate of
10 registration which shall permit the person to whom it is
11 issued to act as a retailer, supplier, or serviceman in this
12 State. The In completing such application, the applicant
13 shall furnish such information as the Department may
14 reasonably require. Upon approval of an application for
15 Certificate of Registration, the Department shall issue,
16 without charge, a Certificate of Registration to the
17 applicant. Such certificate of registration shall be
18 conspicuously displayed at the place of business address
19 which the person so registered applicant states in his
20 application to be the principal place of business or location
21 from which he will act as a retailer, supplier, or serviceman
22 in this State.
23 No certificate of registration issued to a taxpayer who
24 files returns required by this Code on a monthly basis shall
25 be valid after the expiration of 5 years from the date of its
26 issuance or last renewal. The expiration date of a
27 sub-certificate of registration shall be that of the
28 certificate of registration to which the sub-certificate
29 relates. A certificate of registration shall automatically
30 be renewed, subject to revocation as provided by this Code,
31 for an additional 5 years from the date of its expiration
32 unless otherwise notified by the Department as provided by
33 this paragraph. Where a taxpayer to whom a certificate of
-928- LRB9000671KDdvA
1 registration is issued under this Code is in default to the
2 State of Illinois for moneys due under this Code or any other
3 State tax law or municipal or county ordinance administered
4 or enforced by the Department, the Department shall, not less
5 than 120 days before the expiration date of such certificate
6 of registration, give notice to the taxpayer to whom the
7 certificate was issued, of the amount of tax, penalty and
8 interest due and owing from the taxpayer, and that the
9 certificate of registration shall not be automatically
10 renewed upon its expiration date unless the taxpayer, on or
11 before the date of expiration, has paid the defaulted amount
12 in full. A taxpayer to whom such a notice is issued shall be
13 deemed an applicant for renewal. The Department shall
14 promulgate regulations establishing procedures for taxpayers
15 who file returns on a monthly basis but desire and qualify to
16 change to a quarterly or yearly filing basis and will no
17 longer be subject to renewal under this Section, and for
18 taxpayers who file returns on a yearly or quarterly basis but
19 who desire or are required to change to a monthly filing
20 basis and will be subject to renewal under this Section.
21 The Department may in its discretion approve renewal by
22 an applicant who is in default if, at the time of application
23 for renewal, the applicant pays to the Department such
24 percentage of the defaulted amount as may be determined by
25 the Department and agrees in writing to waive all limitations
26 upon the Department for collection of the remaining defaulted
27 amount to the Department over a period not to exceed 5 years
28 from the date of renewal of the certificate; however, no
29 renewal application submitted by an applicant who is in
30 default shall be approved if the immediately preceding
31 renewal by the applicant was conditioned upon the installment
32 payment agreement described in this Section. The payment
33 agreement herein provided for shall be in addition to and not
34 in lieu of the security required by Section 35-25 of a
-929- LRB9000671KDdvA
1 taxpayer who is no longer considered a prior continuous
2 compliance taxpayer. The execution of the payment agreement
3 as provided in this Code shall not toll the accrual of
4 interest at the statutory rate.
5 A certificate of registration issued under this Code more
6 than 5 years before the effective date of this amendatory Act
7 of 1989 shall expire and be subject to the renewal provisions
8 of this Section on the next anniversary of the date of
9 issuance of such certificate which occurs more than 6 months
10 after the effective date of this amendatory Act of 1989. A
11 certificate of registration issued less than 5 years before
12 the effective date of this amendatory Act of 1989 shall
13 expire and be subject to the renewal provisions of this
14 Section on the 5th anniversary of the issuance of the
15 certificate.
16 (b) If the person so registered states that he operates
17 other places of business from which he acts as a retailer,
18 supplier, or serviceman in this State, If the applicant will
19 act as a serviceman in this State from other places of
20 business or locations, he shall list the addresses of such
21 additional places of business or locations in his application
22 for Certificate of Registration, and the Department shall
23 furnish him with issue a sub-certificate of registration to
24 the applicant for each such additional place of business, and
25 the applicant shall display the appropriate or location. Each
26 sub-certificate of registration shall be conspicuously
27 displayed at each such the place of business for which it is
28 issued. All sub-certificates Such Sub-Certificate of
29 registration shall bear the same registration number as that
30 appearing upon the certificate of registration to which such
31 sub-certificates relate.
32 (c) If the applicant will sell tangible personal
33 property at retail through vending machines, the Department
34 shall furnish him with a sub-certificate of registration for
-930- LRB9000671KDdvA
1 each such vending machine, and the applicant shall display
2 the appropriate sub-certificate of registration on each such
3 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
6 that are Where a serviceman operates more than one place of
7 business which is subject to registration under this Code,
8 which Section and such businesses are substantially different
9 in character or are engaged in under different trade names or
10 are engaged in under other substantially dissimilar
11 circumstances (so that it is more practicable, from an
12 accounting, auditing or bookkeeping standpoint, for such
13 businesses to be separately registered), the Department may
14 require or permit such person (subject to the same
15 requirements concerning the furnishing of security as those
16 that are provided for in Section 35-25 as to each application
17 for a certificate of registration) to apply for and obtain a
18 separate certificate of registration for each such business
19 or for any of such businesses instead of registering such
20 person, as to all such businesses, under a single certificate
21 of registration supplemented by related sub-certificates of
22 registration. No Certificate of Registration shall be issued
23 to any person who is in default to the State of Illinois for
24 moneys due hereunder.
25 (Source: Laws 1961, p. 1757.)
26 (35 ILCS 110/7) (from Ch. 120, par. 439.37)
27 Section 60-10. Foreign retailers; permit to collect tax.
28 For purposes of the use tax, the service occupation tax, and
29 the service use tax, Sec. 7. the Department may, in its
30 discretion, upon application, authorize the collection of the
31 tax herein imposed by any retailer, supplier, or serviceman
32 not maintaining a place of business within this State, who,
33 to the satisfaction of the Department, furnishes adequate
-931- LRB9000671KDdvA
1 security to insure collection and payment of the tax. Such
2 retailer, supplier, or serviceman shall be issued, without
3 charge, a permit to collect such tax. When so authorized, it
4 shall be the duty of such retailer, supplier, or serviceman
5 to collect the tax upon all tangible personal property sold
6 to his knowledge for use or for the purpose of resale as an
7 incident to the sale of a service within this State, in the
8 same manner and subject to the same requirements, including
9 the furnishing of a receipt to the purchaser or serviceman
10 (if demanded by the purchaser or serviceman), as a retailer,
11 supplier, or serviceman maintaining a place of business
12 within this State. The receipt given to the purchaser or
13 serviceman shall be sufficient to relieve him from further
14 tax liability for the tax to which such receipt may refer.
15 Such permit may be revoked by the Department as provided in
16 this Code herein.
17 (Source: Laws 1961, p. 1757.)
18 (35 ILCS 110/7a) (from Ch. 120, par. 439.37a)
19 Section 80-20. Advertisement of tax absorption. For
20 purposes of the use tax, the service occupation tax, and the
21 service use tax, Sec. 7a. it is unlawful for (a) any retailer
22 to advertise, hold out, or state to the public or to any
23 purchaser, consumer, or user, (b) any supplier to advertise,
24 hold out, or state to the public or to any serviceman, or (c)
25 any serviceman to advertise, or hold out, or state to the
26 public or to any service customer, purchaser, consumer, or
27 user, directly or indirectly, that the tax imposed by Article
28 15, Article 20, or Article 25 this Act or any part thereof
29 will be assumed or absorbed absolved by the retailer,
30 supplier, or serviceman or that they it will not be added to
31 the selling price of the property sold or transferred as an
32 incident to a sale of service, or if added that it or any
33 part thereof will be refunded other than when the retailer,
-932- LRB9000671KDdvA
1 supplier, or serviceman refunds the selling price and tax
2 because of the merchandise's merchandise being returned to
3 the retailer, supplier, or serviceman or other than when the
4 retailer, supplier, or serviceman credits or refunds the tax
5 to the purchaser, serviceman, or service customer to support
6 a claim filed with the Department under the Service
7 Occupation Tax Act or under this Code Act. Any person
8 violating any of the provisions of this Section within the
9 State shall be guilty of a Class A misdemeanor.
10 (Source: P.A. 85-1135.)
11 (35 ILCS 110/8) (from Ch. 120, par. 439.38)
12 Section 60-5. Tax collected as debt owed to State;
13 exception. Sec. 8. The tax herein required to be collected by
14 any retailer pursuant to Article 15, any supplier pursuant to
15 Article 20, or any serviceman pursuant to Article 25 this
16 Act, and any such tax collected by any retailer, supplier, or
17 serviceman shall constitute a debt owed by the retailer,
18 supplier, or serviceman to this State, except (i) when such
19 retailer is relieved of the duty of remitting such tax to the
20 Department by virtue of his being required to pay, and his in
21 fact paying, the tax imposed by Article 10 upon his gross
22 receipts from the same transaction, or (ii) when such
23 serviceman is relieved of the duty of remitting such tax to
24 the Department by virtue of his being required to pay, and
25 his in fact paying, the tax imposed by Article 20 the
26 "Service Occupation Tax Act" upon his sale of service
27 involving the incidental transfer by him of the same
28 property.
29 (Source: P.A. 76-223.)
30 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
31 Section 50-110. Payment of tax by retailer or
32 serviceman.
-933- LRB9000671KDdvA
1 (a) Except as provided in Sections 50-5 through 50-140,
2 the retailer filing the return under Sections 50-5 through
3 50-140 shall, at the time of filing such return, pay to the
4 Department the amount of tax imposed by this Code less a
5 discount of 2.1% prior to January 1, 1990 and 1.75% on and
6 after January 1, 1990, or $5 per calendar year, whichever is
7 greater, which is allowed to reimburse the retailer for the
8 expenses incurred in keeping records, preparing and filing
9 returns, remitting the tax and supplying data to the
10 Department on request. Any prepayment made pursuant to
11 Section 10-30 shall be included in the amount on which such
12 2.1% or 1.75% discount is computed.
13 (b) For purposes of the use tax, the service occupation
14 tax, and the service use tax, Sec. 9. each retailer or
15 serviceman required or authorized to collect the taxes tax
16 herein imposed by Articles 15, 20, or 25 shall pay to the
17 Department the amount of such tax (except as otherwise
18 provided) at the time when he is required to file his return
19 for the period during which such tax was collected, less a
20 discount of 2.1% prior to January 1, 1990, and 1.75% on and
21 after January 1, 1990, or $5 per calendar year, whichever is
22 greater, which is allowed to reimburse the retailer or
23 serviceman for expenses incurred in collecting the tax,
24 keeping records, preparing and filing returns, remitting the
25 tax and supplying data to the Department on request. For
26 purposes of the use tax, this subsection shall not apply to
27 motor vehicles, watercraft, aircraft, and trailers that are
28 required to be registered with an agency of this State.
29 (c) In the case of retailers who report and pay the tax
30 on a transaction by transaction basis, as provided in
31 Sections 50-5 through 50-140, such discount shall be taken
32 with each such tax remittance instead of when such retailer
33 files his periodic return.
34 (d) For purposes of the use tax, a retailer need not
-934- LRB9000671KDdvA
1 remit that part of any tax collected by him to the extent
2 that he is required to remit and does remit the tax imposed
3 by Article 10, with respect to the sale of the same property.
4 (e) For purposes of the service use tax, a serviceman
5 need not remit that part of any tax collected by him to the
6 extent that he is required to pay and does pay the tax
7 imposed by Article 20 the Service Occupation Tax Act with
8 respect to his sale of service involving the incidental
9 transfer by him of the same property.
10 Section 50-5. Applicability of Sections 50-10 through
11 50-140. All of the provisions of Sections 50-10 through
12 50-140 of this Code shall apply to the retailers' occupation
13 tax, the use tax, the service occupation tax, and the service
14 use tax unless otherwise stated, except that the Sections
15 concerning the disposition by the Department of the money
16 collected under this Code shall not apply to the service
17 occupation tax and the service use tax unless the Section
18 states that it applies to those taxes. To the extent that
19 any provision specifically applying to the use tax, the
20 service occupation tax, or the service use tax is
21 inconsistent with a general provision applying to all of the
22 taxes, the specific provision shall control.
23 Section 50-10. Monthly returns. Except as provided in
24 Sections 50-5 through 50-140, on or before the twentieth day
25 of each calendar month, every person engaged in the business
26 of selling tangible personal property at retail in this State
27 during the preceding calendar month shall file a return with
28 the Department, stating:
29 (1) the name of the seller;
30 (2) his residence address and the address of his
31 principal place of business and the address of the
32 principal place of business (if that is a different
-935- LRB9000671KDdvA
1 address) from which he engages in the business of selling
2 tangible personal property at retail in this State;
3 (3) total amount of receipts received by him during
4 the preceding calendar month or quarter, as the case may
5 be, from sales of tangible personal property, and from
6 services furnished, by him during such preceding calendar
7 month or quarter;
8 (4) total amount received by him during the
9 preceding calendar month or quarter on charge and time
10 sales of tangible personal property, and from services
11 furnished, by him prior to the month or quarter for which
12 the return is filed;
13 (5) deductions allowed by law;
14 (6) gross receipts which were received by him
15 during the preceding calendar month or quarter and upon
16 the basis of which the tax is imposed;
17 (7) the amount of credit provided in Section 10-30;
18 (8) the amount of tax due;
19 (9) the signature of the taxpayer; and
20 (10) such other reasonable information as the
21 Department may require.
22 Section 50-15. Use tax returns. For purposes of the use
23 tax, except as provided in Sections 50-5 through 50-140, on
24 or before the twentieth day of each calendar month, each
25 retailer required or authorized to collect the use tax shall
26 file a return for the preceding calendar month. Such return
27 shall be filed on forms prescribed by the Department and
28 shall furnish such information as the Department may
29 reasonably require.
30 Section 50-20. Service occupation tax returns. For
31 purposes of the service occupation tax, except as provided in
32 Sections 50-5 through 50-140, on or before the twentieth day
-936- LRB9000671KDdvA
1 of each calendar month, each serviceman required or
2 authorized to collect the service occupation tax shall file a
3 return for the preceding calendar month in accordance with
4 reasonable rules and regulations to be promulgated by the
5 Department of Revenue. Such return shall be filed on a form
6 prescribed by the Department and shall contain such
7 information as the Department may reasonably require.
8 Section 50-25. Service use tax returns. For purposes of
9 the service use tax, except as provided in Sections 50-5
10 through 50-140 hereinafter in this Section, on or before the
11 twentieth day of each calendar month, each such serviceman
12 required or authorized to collect the service use tax shall
13 file a return for the preceding calendar month in accordance
14 with reasonable rules and regulations to be promulgated by
15 the Department. Such return shall be filed on a form
16 prescribed by the Department and shall contain such
17 information as the Department may reasonably require.
18 Section 50-30. Quarterly returns. The Department may
19 require returns to be filed on a quarterly basis. If so
20 required, a return for each calendar quarter shall be filed
21 on or before the twentieth day of the calendar month
22 following the end of such calendar quarter. The taxpayer
23 shall also file a return with the Department for each of the
24 first two months of each calendar quarter, on or before the
25 twentieth day of the following calendar month, stating:
26 (1) 1. the name of the seller;
27 (2) 2. the address of the principal place of
28 business from which he engages (i) in the business of
29 selling tangible personal property at retail in this
30 State or (ii) in business as a serviceman in this State;
31 (3) 3. for purposes of the retailers' occupation
32 tax and the use tax, the total amount of taxable receipts
-937- LRB9000671KDdvA
1 received by him during the preceding calendar month from
2 sales of tangible personal property by him during such
3 preceding calendar month, including receipts from charge
4 and time sales but less all deductions allowed by law or,
5 for purposes of the service occupation tax and the
6 service use tax, the total amount of taxable receipts
7 received by him during the preceding calendar month,
8 including receipts from charge and time sales, but less
9 all deductions allowed by law;
10 (4) 4. the amount of credit provided in Section
11 10-30 2d of this Act;
12 (5) 5. the amount of tax due;
13 (6) 5-5. for purposes of the use tax, the service
14 occupation tax, and the service use tax, the signature of
15 the taxpayer; and
16 (7) 6. such other reasonable information as the
17 Department may require.
18 Section 50-40. Failure to sign a return. If a taxpayer
19 fails to sign a return within 30 days after the proper notice
20 and demand for signature by the Department, the return shall
21 be considered valid and any amount shown to be due on the
22 return shall be deemed assessed.
23 Section 50-45. Signature on return for a corporation or
24 limited liability company.
25 (a) Where the seller is a corporation, the return filed
26 on behalf of such corporation shall be signed by the
27 president, vice-president, secretary or treasurer or by the
28 properly accredited agent of such corporation.
29 (b) Where the seller is a limited liability company, the
30 return filed on behalf of the limited liability company shall
31 be signed by a manager, member, or properly accredited agent
32 of the limited liability company.
-938- LRB9000671KDdvA
1 Section 50-50. Statement of prepaid tax. Each return
2 shall be accompanied by the statement of prepaid tax issued
3 pursuant to Section 10-35 for which credit is claimed.
4 Section 50-55. Rounding.
5 (a) If a total amount of less than $1 is payable,
6 refundable or creditable, such amount shall be disregarded if
7 it is less than 50 cents and shall be increased to $1 if it
8 is 50 cents or more.
9 (b) Any amount which is required to be shown or reported
10 on any return or other document under this Code shall, if
11 such amount is not a whole-dollar amount, be increased to the
12 nearest whole-dollar amount in any case where the fractional
13 part of a dollar is 50 cents or more, and decreased to the
14 nearest whole-dollar amount where the fractional part of a
15 dollar is less than 50 cents.
16 Section 50-100. Electronic funds transfer.
17 (a) Beginning October 1, 1993, a taxpayer who has an
18 average monthly tax liability of $150,000 or more shall make
19 all payments required by rules of the Department by
20 electronic funds transfer. Beginning October 1, 1994, a
21 taxpayer who has an average monthly tax liability of $100,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. Beginning October
24 1, 1995, a taxpayer who has an average monthly tax liability
25 of $50,000 or more shall make all payments required by rules
26 of the Department by electronic funds transfer. The term
27 "average monthly tax liability" shall be means the sum of the
28 taxpayer's liabilities under this Code Act, and under all
29 other State and local occupation and use tax laws
30 administered by the Department, for the immediately preceding
31 calendar year divided by 12.
32 (b) Before August 1 of each year beginning in 1993, the
-939- LRB9000671KDdvA
1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers required
3 to make payments by electronic funds transfer shall make
4 those payments for a minimum of one year beginning on October
5 1.
6 (c) Any taxpayer not required to make payments by
7 electronic funds transfer may make payments by electronic
8 funds transfer with the permission of the Department.
9 (d) All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 (e) The Department shall adopt such rules as are
14 necessary to effectuate a program of electronic funds
15 transfer and the requirements of Sections 50-5 through 50-140
16 this Section.
17 Section 50-35. Authorization to file returns on quarter
18 annual or annual basis.
19 (a) If the retailer or serviceman is otherwise required
20 to file a monthly return and if the retailer's or
21 serviceman's average monthly tax liability to the Department
22 does not exceed $200, the Department may authorize his
23 returns to be filed on a quarter annual basis, with the
24 return for January, February and March of a given year being
25 due by April 20 of such year; with the return for April, May
26 and June of a given year being due by July 20 of such year;
27 with the return for July, August and September of a given
28 year being due by October 20 of such year, and with the
29 return for October, November and December of a given year
30 being due by January 20 of the following year.
31 (b) If the retailer or serviceman is otherwise required
32 to file a monthly or quarterly return and if the retailer's
33 or serviceman's average monthly tax liability with to the
-940- LRB9000671KDdvA
1 Department does not exceed $50, the Department may authorize
2 his returns to be filed on an annual basis, with the return
3 for a given year being due by January 20 of the following
4 year.
5 (c) Such quarter annual and annual returns, as to form
6 and substance, shall be subject to the same requirements as
7 monthly returns.
8 Section 50-60. Cessation of business. Notwithstanding
9 any other provision in this Code Act concerning the time
10 within which a retailer or serviceman may file his return, in
11 the case of any retailer or serviceman who ceases to engage
12 in a kind of business which makes him responsible for filing
13 returns under this Code Act, such retailer or serviceman
14 shall file a final return under this Code Act with the
15 Department not more than one 1 month after discontinuing such
16 business.
17 Section 50-105. Refunds.
18 (a) Refunds made by the seller during the preceding
19 return period to purchasers, on account of tangible personal
20 property returned to the seller, shall be allowed as a
21 deduction under subdivision 5 of his monthly or quarterly
22 return, as the case may be, in case the seller had
23 theretofore included the receipts from the sale of such
24 tangible personal property in a return filed by him and had
25 paid the tax imposed by Article 10 with respect to such
26 receipts.
27 (b) For purposes of the use tax, the service occupation
28 tax, and the service use tax, where a retailer or serviceman
29 collects the tax with respect to the selling price of
30 property which he sells and the purchaser thereafter returns
31 such property and the retailer or serviceman refunds the
32 selling price thereof to the purchaser, such retailer or
-941- LRB9000671KDdvA
1 serviceman shall also refund, to the purchaser, the tax so
2 collected from the purchaser. When filing his return for the
3 period in which he refunds such tax to the purchaser, the
4 retailer or serviceman may deduct the amount of the tax so
5 refunded by him to the purchaser from any other service use
6 tax, service occupation tax, retailers' occupation tax or use
7 tax which such retailer or serviceman may be required to pay
8 or remit to the Department, as shown by such return, provided
9 that the amount of the tax to be deducted was shall
10 previously have been remitted to the Department by such
11 retailer or serviceman. If the retailer or serviceman has
12 shall not previously have remitted the amount of such tax to
13 the Department, he shall be entitled to no deduction
14 hereunder upon refunding such tax to the purchaser.
15 Section 50-70. Selling price of property on return.
16 (a) For purposes of the use tax, any retailer filing a
17 return under Sections 50-5 through 50-140 shall also include
18 (for the purpose of paying tax thereon) the total tax covered
19 by such return upon the selling price of tangible personal
20 property purchased by him at retail from a retailer, but as
21 to which the tax imposed by Article 15 was not collected from
22 the retailer filing such return, and such retailer shall
23 remit the amount of such tax to the Department when filing
24 such return.
25 (b) For purposes of the service use tax, any serviceman
26 filing a return hereunder shall also include the total tax
27 upon the selling price of tangible personal property
28 purchased for use by him as an incident to a sale of service,
29 and such serviceman shall remit the amount of such tax to the
30 Department when filing such return.
31 Section 50-75. Joint returns.
32 (a) For purposes of the use tax, if experience indicates
-942- LRB9000671KDdvA
1 such action to be practicable, the Department may prescribe
2 and furnish a combination or joint return which will enable
3 retailers, who are required to file returns for the taxes
4 imposed in Article 10 and Article 15 to furnish all the
5 return information required for both taxes on the one form.
6 (b) For purposes of the service use tax, if experience
7 indicates such action to be practicable, the Department may
8 prescribe and furnish a combination or joint return which
9 will enable servicemen, who are required to file returns for
10 the taxes imposed by Articles 20 and 25 hereunder and also
11 under the Service Occupation Tax Act, to furnish all the
12 return information required by both taxes Acts on the one
13 form.
14 (c) For purposes of the service occupation tax, if
15 experience indicates such action to be practicable, the
16 Department may prescribe and furnish a combination or joint
17 return which will enable servicemen, who are required to file
18 returns for the tax imposed by Article 20 and also the taxes
19 imposed by Articles 10, 15, and 25, to furnish all the return
20 information required by all said taxes on the one form.
21 Section 50-65. Multiple businesses. Where the same
22 person serviceman has more than one business registered with
23 the Department under separate registrations under this Code
24 registration hereunder, such person may serviceman shall not
25 file each return that is due as a single return covering all
26 such registered businesses, but shall file separate returns
27 for each such registered business.
28 Section 85-20. Distribution of funds from the service
29 use tax. This Section shall apply to the service use tax
30 only. Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Tax Reform Fund, a special
32 fund in the State Treasury, the net revenue realized for the
-943- LRB9000671KDdvA
1 preceding month from the 1% tax on sales of food for human
2 consumption which is to be consumed off the premises where it
3 is sold (other than alcoholic beverages, soft drinks and food
4 which has been prepared for immediate consumption) and
5 prescription and nonprescription medicines, drugs, medical
6 appliances and insulin, urine testing materials, syringes and
7 needles used by diabetics.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the State and Local Sales Tax Reform Fund 20%
10 of the net revenue realized for the preceding month from the
11 6.25% general rate on transfers of tangible personal
12 property, other than tangible personal property which is
13 purchased outside Illinois at retail from a retailer and
14 which is titled or registered by an agency of this State's
15 government.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 25, disposition of funds shall be made as
18 provided in Section 85-25.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in this Section and Section 85-25,
21 distribution of funds shall be made as provided in Section
22 85-30.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to this Article, each month the Department shall pay into the
26 Local Government Distributive Fund 0.4% of the net revenue
27 realized for the preceding month from the 5% general rate or
28 0.4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments or
33 distributions pursuant to this paragraph shall be made if the
34 tax imposed by Article 25 on photo processing products is
-944- LRB9000671KDdvA
1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to this Article,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 All remaining moneys received by the Department pursuant
12 to Article 25 shall be paid into the General Revenue Fund of
13 the State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under Article 25 for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June, 1992.
22 For purposes of this Section, net revenue realized for a
23 month shall be the revenue collected by the State pursuant to
24 Article 25, less the amount paid out during that month as
25 refunds to taxpayers for overpayment of liability.
26 Section 85-25. Payments to the Build Illinois Fund. Of
27 the remainder of the moneys received by the Department
28 pursuant to Article 10, Article 15, Article 20, or Article
29 25, as the case may be this Act, (a) 1.75% thereof shall be
30 paid into the Build Illinois Fund and (b) prior to July 1,
31 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
32 be paid into the Build Illinois Fund; provided, however,
33 that if in any fiscal year the sum of (1) the aggregate of
-945- LRB9000671KDdvA
1 2.2% or 3.8%, as the case may be, of the moneys received by
2 the Department and required to be paid into the Build
3 Illinois Fund pursuant to this Code Section 3 of the
4 Retailers' Occupation Tax Act, Section 9 of the Use Tax Act,
5 Section 9 of the Service Use Tax Act, and Section 9 of the
6 Service Occupation Tax Act, such Acts being hereinafter
7 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
8 the case may be, of moneys being hereinafter called the "Tax
9 Code Act Amount", and (2) the amount transferred to the Build
10 Illinois Fund from the State and Local Sales Tax Reform Fund
11 shall be less than the Annual Specified Amount (as
12 hereinafter defined in Section 3 of the Retailers' Occupation
13 Tax Act), an amount equal to the difference shall be
14 immediately paid into the Build Illinois Fund from other
15 moneys received by the Department pursuant to this Code the
16 Tax Acts; the "Annual Specified Amount" means the amounts
17 specified below for fiscal years 1986 through 1993:
18 Fiscal Year Annual Specified Amount
19 1986 $54,800,000
20 1987 $76,650,000
21 1988 $80,480,000
22 1989 $88,510,000
23 1990 $115,330,000
24 1991 $145,470,000
25 1992 $182,730,000
26 1993 $206,520,000;
27 and means the Certified Annual Debt Service Requirement (as
28 defined in Section 13 of the Build Illinois Bond Act) or the
29 Tax Code Amount, whichever is greater, for fiscal year 1994
30 and each fiscal year thereafter; and further provided, that
31 if on the last business day of any month the sum of (1) the
32 Tax Code Act Amount required to be deposited into the Build
33 Illinois Bond Account in the Build Illinois Fund during such
34 month and (2) the amount transferred during such month to the
-946- LRB9000671KDdvA
1 Build Illinois Fund from the State and Local Sales Tax Reform
2 Fund shall have been less than 1/12 of the Annual Specified
3 Amount, an amount equal to the difference shall be
4 immediately paid into the Build Illinois Fund from other
5 moneys received by the Department pursuant to this Code the
6 Tax Acts; and, further provided, that in no event shall the
7 payments required under the preceding proviso result in
8 aggregate payments into the Build Illinois Fund pursuant to
9 this clause (b) for any fiscal year in excess of the greater
10 of (i) the Tax Code Act Amount or (ii) the Annual Specified
11 Amount for such fiscal year.; and, further provided, that The
12 amounts payable into the Build Illinois Fund under this
13 clause (b) of the first sentence in this paragraph shall be
14 payable only until such time as the aggregate amount on
15 deposit under each trust indenture securing Bonds issued and
16 outstanding pursuant to the Build Illinois Bond Act is
17 sufficient, taking into account any future investment income,
18 to fully provide, in accordance with such indenture, for the
19 defeasance of or the payment of the principal of, premium, if
20 any, and interest on the Bonds secured by such indenture and
21 on any Bonds expected to be issued thereafter and all fees
22 and costs payable with respect thereto, all as certified by
23 the Director of the Bureau of the Budget. If on the last
24 business day of any month in which Bonds are outstanding
25 pursuant to the Build Illinois Bond Act, the aggregate of the
26 moneys deposited in the Build Illinois Bond Account in the
27 Build Illinois Fund in such month shall be less than the
28 amount required to be transferred in such month from the
29 Build Illinois Bond Account to the Build Illinois Bond
30 Retirement and Interest Fund pursuant to Section 13 of the
31 Build Illinois Bond Act, an amount equal to such deficiency
32 shall be immediately paid from other moneys received by the
33 Department pursuant to this Code the Tax Acts to the Build
34 Illinois Fund; provided, however, that any amounts paid to
-947- LRB9000671KDdvA
1 the Build Illinois Fund in any fiscal year pursuant to this
2 sentence shall be deemed to constitute payments pursuant to
3 clause (b) of the first preceding sentence of this paragraph
4 and shall reduce the amount otherwise payable for such fiscal
5 year pursuant to that clause (b) of the preceding sentence.
6 The moneys received by the Department pursuant to this Code
7 Act and required to be deposited into the Build Illinois Fund
8 are subject to the pledge, claim and charge set forth in
9 Section 12 of the Build Illinois Bond Act.
10 Section 85-30. Payments to the McCormick Place Expansion
11 Project Fund. Subject to payment of amounts into the Build
12 Illinois Fund as provided in Sections 85-5 through 85-25 the
13 preceding paragraph or in any amendment thereto hereafter
14 enacted, the following specified monthly installment of the
15 amount requested in the certificate of the Chairman of the
16 Metropolitan Pier and Exposition Authority provided under
17 Section 8.25f of the State Finance Act, but not in excess of
18 the sums designated as "Total Deposit", shall be deposited in
19 the aggregate from collections under Sections 50-5 through
20 50-140 Section 9 of the Use Tax Act, Section 9 of the Service
21 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
22 Section 3 of the Retailers' Occupation Tax Act into the
23 McCormick Place Expansion Project Fund in the specified
24 fiscal years.
25 Fiscal Year Total Deposit
26 1993 $0
27 1994 53,000,000
28 1995 58,000,000
29 1996 61,000,000
30 1997 64,000,000
31 1998 68,000,000
32 1999 71,000,000
33 2000 75,000,000
-948- LRB9000671KDdvA
1 2001 80,000,000
2 2002 84,000,000
3 2003 89,000,000
4 2004 and 93,000,000
5 each fiscal year
6 thereafter that bonds
7 are outstanding under
8 Section 13.2 of the
9 Metropolitan Pier and
10 Exposition Authority Act.
11 Beginning July 20, 1993 and in each month of each fiscal
12 year thereafter, one-eighth of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority for that fiscal year, less the amount
15 deposited into the McCormick Place Expansion Project Fund by
16 the State Treasurer in the respective month under subsection
17 (g) of Section 13 of the Metropolitan Pier and Exposition
18 Authority Act, plus cumulative deficiencies in the deposits
19 required under this Section for previous months and years,
20 shall be deposited into the McCormick Place Expansion Project
21 Fund, until the full amount requested for the fiscal year,
22 but not in excess of the amount specified above as "Total
23 Deposit", has been deposited.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to the preceding paragraphs or in any amendment thereto
27 hereafter enacted, each month the Department shall pay into
28 the Local Government Distributive Fund 0.4% of the net
29 revenue realized for the preceding month from the 5% general
30 rate or 0.4% of 80% of the net revenue realized for the
31 preceding month from the 6.25% general rate, as the case may
32 be, on the selling price of tangible personal property which
33 amount shall, subject to appropriation, be distributed as
34 provided in Section 2 of the State Revenue Sharing Act. No
-949- LRB9000671KDdvA
1 payments or distributions pursuant to this paragraph shall be
2 made if the tax imposed by this Act on photo processing
3 products is declared unconstitutional, or if the proceeds
4 from such tax are unavailable for distribution because of
5 litigation.
6 Subject to payment of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project Fund, and the
8 Local Government Distributive Fund pursuant to the preceding
9 paragraphs or in any amendments thereto hereafter enacted,
10 beginning July 1, 1993, the Department shall each month pay
11 into the Illinois Tax Increment Fund 0.27% of 80% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property.
15 All remaining moneys received by the Department pursuant
16 to this Act shall be paid into the General Revenue Fund of
17 the State Treasury.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June, 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
31 eff. 1-1-96.)
32 (35 ILCS 110/10) (from Ch. 120, par. 439.40)
33 Section 50-155. Requirement to file return.
-950- LRB9000671KDdvA
1 (a) For purposes of the use tax, except as to motor
2 vehicles and aircraft, when tangible personal property is
3 purchased from a retailer for use in this State by a
4 purchaser who did not pay the tax imposed by Article 15 to
5 the retailer, and who does not file returns with the
6 Department as a retailer under Sections 50-5 through 50-140
7 of this Code, such purchaser (by the last day of the month
8 following the calendar month in which such purchaser makes
9 any payment upon the selling price of such property) shall,
10 except as provided in this Section, file a return with the
11 Department and pay the tax upon that portion of the selling
12 price so paid by the purchaser during the preceding calendar
13 month. When tangible personal property is purchased by a
14 lessor, under a lease for one year or longer, executed or in
15 effect at the time of purchase to an interstate carrier for
16 hire, who did not pay the tax imposed by Article 15 to the
17 retailer, such lessor (by the last day of the month following
18 the calendar month in which such property reverts to the use
19 of such lessor) shall file a return with the Department and
20 pay the tax upon the fair market value of such property on
21 the date of such reversion. Such return shall be filed on a
22 form prescribed by the Department and shall contain such
23 information as the Department may reasonably require. Such
24 return and payment from the purchaser shall be submitted to
25 the Department sooner than the last day of the month after
26 the month in which the purchase is made to the extent that
27 that may be necessary in order to secure the title to a motor
28 vehicle or the certificate of registration for an aircraft.
29 However, if the purchaser's annual use tax liability does not
30 exceed $600, the purchaser may file the return on an annual
31 basis on or before April 15th of the year following the year
32 use tax liability was incurred.
33 In addition with respect to motor vehicles and aircraft,
34 a purchaser of such tangible personal property for use in
-951- LRB9000671KDdvA
1 this State, who purchases such tangible personal property
2 from an out-of-state retailer, shall file with the
3 Department, upon a form to be prescribed and supplied by the
4 Department, a return for each such item of tangible personal
5 property purchased. Such return in the case of motor
6 vehicles and aircraft must show the name and address of the
7 seller, the name and address of purchaser, the amount of the
8 selling price including the amount allowed by the retailer
9 for traded in property, if any; the amount allowed by the
10 retailer for the traded-in tangible personal property, if
11 any, to the extent to which Section 5-120 of this Code allows
12 an exemption for the value of traded-in property; the balance
13 payable after deducting such trade-in allowance from the
14 total selling price; the amount of tax due from the purchaser
15 with respect to such transaction; the amount of tax collected
16 from the purchaser by the retailer on such transaction (or
17 satisfactory evidence that such tax is not due in that
18 particular instance if that is claimed to be the fact); the
19 place and date of the sale, a sufficient identification of
20 the property sold, and such other information as the
21 Department may reasonably require.
22 Such return shall be filed not later than 30 days after
23 such motor vehicle or aircraft is brought into this State for
24 use.
25 The return and tax remittance or proof of exemption from
26 the tax that is imposed by Article 15 may be transmitted to
27 the Department by way of the State agency with which, or
28 State officer with whom, the tangible personal property must
29 be titled or registered (if titling or registration is
30 required) if the Department and such agency or State officer
31 determine that this procedure will expedite the processing of
32 applications for title or registration.
33 With each such return, the purchaser shall remit the
34 proper amount of tax due (or shall submit satisfactory
-952- LRB9000671KDdvA
1 evidence that the sale is not taxable if that is the case),
2 to the Department or its agents, whereupon the Department
3 shall issue, in the purchaser's name, a tax receipt (or a
4 certificate of exemption if the Department is satisfied that
5 the particular sale is tax exempt) which such purchaser may
6 submit to the agency with which, or State officer with whom,
7 he must title or register the tangible personal property that
8 is involved (if titling or registration is required) in
9 support of such purchaser's application for an Illinois
10 certificate or other evidence of title or registration to
11 such tangible personal property.
12 (b) For purposes of the service use tax, Sec. 10. where
13 property is acquired as an incident to the purchase of a
14 service from a serviceman for use in this State by a
15 purchaser who did not pay the tax herein imposed to the
16 serviceman, and who does not file returns with the Department
17 as a serviceman under Sections 50-5 through 50-140 of this
18 Code Section 9 of this Act, such purchaser (by the last day
19 of the month following the calendar month in which such
20 purchaser makes any payment upon the selling price of such
21 property) shall, except as hereinafter provided in this
22 Section, file a return with the Department and pay the tax
23 upon that portion of the selling price so paid by the
24 purchaser during the preceding calendar month. Such return
25 shall be filed on a form prescribed by the Department and
26 shall contain such information as the Department may
27 reasonably require.
28 (c) For purposes of the use tax and the service use tax,
29 when a purchaser pays a tax herein imposed by Article 15 or
30 25 directly to the Department, the Department (upon request
31 therefor from such purchaser) shall issue an appropriate
32 receipt to such purchaser showing that he has paid such tax
33 to the Department. Such receipt shall be sufficient to
34 relieve the purchaser from further liability for from the tax
-953- LRB9000671KDdvA
1 to which such receipt may refer.
2 (d) For purposes of the use tax and the service use tax,
3 a user who is liable to pay use tax or service use tax
4 directly to the Department only occasionally and not on a
5 frequently recurring basis, and who is not required to file
6 returns with within the Department as a retailer or
7 serviceman under Sections 50-5 through 50-140 of this Code
8 Section 9 of this Act, or as a serviceman under the "Service
9 Occupation Tax Act", or as a retailer or user under the "Use
10 Tax Act", or as a retailer under the "Retailers' Occupation
11 Tax Act", need not register with the Department. However, if
12 such a user has a frequently recurring direct use tax or
13 service use tax liability to pay to the Department, such user
14 shall be required to register with the Department on forms
15 prescribed by the Department and to obtain and display a
16 certificate of registration from the Department. In that
17 event, all of the provisions of Sections 50-5 through 50-140
18 of this Code Section 9 of this Act concerning the filing of
19 regular monthly, quarterly or annual tax returns and all of
20 the provisions of Sections 35-5 through 35-45 Section 2a of
21 the "Retailers' Occupation Tax Act" concerning the
22 requirements for registrants to post bond or other security
23 with the Department, as the provisions of such sections now
24 exist or may hereafter be amended, shall apply to such users
25 to the same extent as if such provisions were included
26 herein.
27 (Source: P.A. 85-1135.)
28 (35 ILCS 110/10a) (from Ch. 120, par. 439.40a)
29 Section 35-70. Exemption from bonding. Sec. 10a.
30 Notwithstanding any other provision to the contrary, any
31 person who is required to file a bond pursuant to any
32 provision of this Code Act and who has continuously complied
33 with all provisions of this Code Act for 24 or more
-954- LRB9000671KDdvA
1 consecutive months, shall no longer be required to comply
2 with the bonding provisions of this Code Act so long as such
3 person continues his compliance with the provisions of this
4 Code Act.
5 (Source: P.A. 84-1408.)
6 (35 ILCS 110/11) (from Ch. 120, par. 439.41)
7 Section 45-15. Records; use tax; service occupation tax;
8 service use tax. For purposes of the use tax, the service
9 occupation tax, and the service use tax, Sec. 11. every
10 retailer, supplier, or serviceman required or authorized to
11 collect taxes hereunder and every person user who is subject
12 to the taxes tax imposed by Article 15, Article 20, or
13 Article 25 this Act shall keep such records, receipts,
14 invoices and other pertinent books, documents, memoranda and
15 papers as the Department shall require, in such form as the
16 Department shall require. The Department may adopt rules that
17 establish requirements, including record forms and formats,
18 for records required to be kept and maintained by taxpayers.
19 For purposes of this Section, "records" means all data
20 maintained by the taxpayer, including data on paper,
21 microfilm, microfiche or any type of machine-sensible data
22 compilation. For the purpose of administering and enforcing
23 the provisions hereof, the Department, or any officer or
24 employee of the Department designated, in writing, by the
25 Director thereof, may hold investigations and hearings
26 concerning any matters covered herein and may examine any
27 relevant books, papers, records, documents or memoranda of
28 (i) any retailer or purchaser bearing upon the sales or
29 purchases of tangible personal property, the privilege of
30 using which is taxed under Article 15, (ii) any supplier or
31 serviceman bearing upon the sales of services or the sales of
32 tangible personal property to servicemen, or (iii) any
33 serviceman or any taxable purchaser for use for purposes of
-955- LRB9000671KDdvA
1 Article 25 hereunder, and may require the attendance of such
2 person or any officer or employee of such person, or of any
3 person having knowledge of the facts, and may take testimony
4 and require proof for its information.
5 (Source: P.A. 88-480.)
6 (35 ILCS 110/12) (from Ch. 120, par. 439.42)
7 Section 90-40. Sec. 12. Applicability of the Retailers'
8 Occupation Tax Act and Uniform Penalty and Interest Act. All
9 of the provisions of Sections 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n,
10 2a, 2b, 2c, 3 (except as to the disposition by the Department
11 of the money collected under this Act), 4 (except that the
12 time limitation provisions shall run from the date when gross
13 receipts are received), 5 (except that the time limitation
14 provisions on the issuance of notices of tax liability shall
15 run from the date when the tax is due rather than from the
16 date when gross receipts are received and except that in the
17 case of a failure to file a return required by this Act, no
18 notice of tax liability shall be issued on and after July 1
19 and January 1 covering tax due with that return during any
20 month or period more than 6 years before that July 1 or
21 January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
22 5l, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax
23 Act which are not inconsistent with this Act, and Section 3-7
24 of the Uniform Penalty and Interest Act, which are not
25 inconsistent with this Code, shall apply, as far as
26 practicable, to the subject matter of this Code Act to the
27 same extent as if such provisions were included herein.
28 (Source: P.A. 87-205; 88-660, eff. 9-16-94.)
29 (35 ILCS 110/13) (from Ch. 120, par. 439.43)
30 Section 90-5. Appointment of Secretary of State for
31 service of process. Sec. 13. Any non-resident of this State
32 who accepts the privilege extended by the laws of this State
-956- LRB9000671KDdvA
1 to non-residents of acting as a retailer maintaining a place
2 of business within this State within the meaning of Section
3 5-110 or as a serviceman maintaining a place of business in
4 this State within the meaning of Section 5-130, 2 of this
5 Act, and any resident of this State who incurs tax liability
6 under Article 15 as a seller or Article 25 accountability
7 under this Act as a serviceman and who subsequently removes
8 from this State or conceals his whereabouts, and any person
9 (resident or non-resident) who incurs tax liability under
10 Article 10 as a retailer, under Article 15 or Article 25 as a
11 user in this State, or under Article 20 as a serviceman this
12 Act as a user in this State, and who removes from this State
13 or conceals his whereabouts, shall be deemed thereby to
14 appoint the Secretary of State of Illinois his agent for the
15 service of process or notice in any judicial or
16 administrative proceeding under this Code Act. Such process
17 or notice shall be served by the Department on the Secretary
18 of State by leaving, at the office of the Secretary of State
19 at least 15 days before the return day of such process or
20 notice, a true and certified copy thereof, and by sending to
21 the taxpayer by registered or certified mail, postage
22 prepaid, a like and true certified copy, with an endorsement
23 thereon of the service upon said Secretary of State,
24 addressed to such taxpayer at his last known address.
25 Service of process or notice in the manner provided for
26 in this Section, under the circumstances specified in this
27 Section, shall be of the same force and validity as if served
28 upon the taxpayer personally within this State. Proof of such
29 service upon the taxpayer in this State through the Secretary
30 of State as his agent and by mailing to the last known
31 address of the taxpayer may be made in such judicial or
32 administrative proceeding by the affidavit of the Director of
33 Revenue, or by his duly authorized representative who made
34 such service, with a copy of the process or notice that was
-957- LRB9000671KDdvA
1 so served attached to such affidavit.
2 (Source: Laws 1961, p. 1757.)
3 (35 ILCS 110/14) (from Ch. 120, par. 439.44)
4 Section 60-15. Foreign retailers; revocation of permit
5 to collect tax. For purposes of the use tax and service use
6 tax, Sec. 14. whenever any retailer or serviceman not
7 maintaining a place of business in this State, to whom a
8 permit to collect the taxes tax hereby imposed by Article 15
9 and Article 25 has been issued pursuant to Section 60-10 7
10 hereof, fails to comply with any of the provisions hereof or
11 any orders, rules or regulations of the Department prescribed
12 and adopted hereunder, or when the Department considers the
13 security furnished by such retailer or serviceman to be
14 inadequate or considers that the tax can be collected more
15 effectively from persons using such property in this State,
16 the Department may, upon notice and hearing as herein
17 provided, by order revoke the permit issued to such retailer
18 or serviceman. No order authorized by this Section shall be
19 made until the retailer or serviceman is given an opportunity
20 to be heard and to show cause why such order shall not be
21 made, and he shall be given at least 7 days' notice of the
22 time, place and purpose of such hearing. The Department shall
23 have the power in its discretion to issue a new permit
24 pursuant to Section 60-10 7 hereof after such revocation.
25 (Source: Laws 1961, p. 1757.)
26 (35 ILCS 110/15) (from Ch. 120, par. 439.45)
27 Section 80-10. Violations under the use tax, the service
28 occupation tax, and the service use tax.
29 (a) This Section applies to the use tax, the service
30 occupation tax, and the service use tax. Sec. 15. When the
31 amount due is under $300, any person subject to the
32 provisions hereof who fails to file a return, or who violates
-958- LRB9000671KDdvA
1 any other provision of Sections 50-5 through 50-140 Section 9
2 or Section 50-155 10 hereof, or who fails to keep books and
3 records as required herein, or who files a fraudulent return,
4 or who wilfully violates any rule or regulation of the
5 Department for the administration and enforcement of the
6 provisions hereof, or any officer or agent of a corporation,
7 or manager, member, or agent of a limited liability company,
8 subject hereto who signs a fraudulent return filed on behalf
9 of such corporation or limited liability company, or any
10 accountant or other agent who knowingly enters false
11 information on the return of any taxpayer under Articles 15,
12 20, or 25 this Act, or any person who violates any of the
13 provisions of Sections 15-5, 20-5, 25-5, 60-20, or 80-20 3
14 and 5 hereof, or any purchaser who obtains a registration
15 number or resale number from the Department through
16 misrepresentation, or who represents to a seller that such
17 purchaser has a registration number or a resale number from
18 the Department when he knows that he does not, or who uses
19 his registration number or resale number to make a seller
20 believe that he is buying tangible personal property for
21 resale when such purchaser in fact knows that this is not the
22 case, is guilty of a Class 4 felony.
23 Any person who violates any provision of Sections 35-5
24 through 35-45 Section 6 hereof, or who engages in the
25 business of (i) selling tangible personal property at retail
26 or (ii) making sales of service after his certificate of
27 registration under this Act has been revoked in accordance
28 with Section 90-40 12 of this Act, is guilty of a Class 4
29 felony. Each day any such person is engaged in business in
30 violation of Sections 35-5 through 35-45 Section 6, or after
31 his certificate of registration under this Act has been
32 revoked, constitutes a separate offense.
33 When the amount due is under $300, any person who accepts
34 money that is due to the Department under Articles 15, 20, or
-959- LRB9000671KDdvA
1 25 this Act from a taxpayer for the purpose of acting as the
2 taxpayer's agent to make the payment to the Department, but
3 who fails to remit such payment to the Department when due is
4 guilty of a Class 4 felony. Any such person who purports to
5 make such payment by issuing or delivering a check or other
6 order upon a real or fictitious depository for the payment of
7 money, knowing that it will not be paid by the depository,
8 shall be guilty of a deceptive practice in violation of
9 Section 17-1 of the Criminal Code of 1961, as amended.
10 When the amount due is $300 or more, any person subject
11 to the provisions hereof who fails to file a return, or who
12 violates any other provision of Sections 50-5 through 50-140
13 Section 9 or Section 50-155 10 hereof, or who fails to keep
14 books and records as required herein or who files a
15 fraudulent return, or who wilfully willfully violates any
16 rule or regulation of the Department for the administration
17 and enforcement of the provisions hereof, or any officer or
18 agent of a corporation, or manager, member, or agent of a
19 limited liability company, subject hereto who signs a
20 fraudulent return filed on behalf of such corporation or
21 limited liability company, or any accountant or other agent
22 who knowingly enters false information on the return of any
23 taxpayer under Articles 15, 20, or 25 this Act, or any person
24 who violates any of the provisions of Sections 15-5, 20-5,
25 25-5, 60-20, or 80-20 3 and 5 hereof, or any purchaser who
26 obtains a registration number or resale number from the
27 Department through misrepresentation, or who represents to a
28 seller that such purchaser has a registration number or a
29 resale number from the Department when he knows that he does
30 not, or who uses his registration number or resale number to
31 make a seller believe that he is a buying tangible personal
32 property for resale when such purchaser in fact knows that
33 this is not the case, is guilty of a Class 3 felony.
34 When the amount due is $300 or more, any person who
-960- LRB9000671KDdvA
1 accepts money that is due to the Department under Articles
2 15, 20, or 25 this Act from a taxpayer for the purpose of
3 acting as the taxpayer's agent to make the payment to the
4 Department, but who fails to remit such payment to the
5 Department when due is guilty of a Class 3 felony. Any such
6 person who purports to make such payment by issuing or
7 delivering a check or other order upon a real or fictitious
8 depository for the payment of money, knowing that it will not
9 be paid by the depository, shall be guilty of a deceptive
10 practice in violation of Section 17-1 of the Criminal Code
11 of 1961, as amended.
12 Any seller or serviceman who collects or attempts to
13 collect use tax, service occupation tax, or service use tax
14 measured by receipts or selling prices which such seller or
15 serviceman knows are not subject to use tax, service
16 occupation tax, or service use tax, or any serviceman who
17 collects or attempts to collect an amount (however
18 designated) which purports to reimburse such serviceman for
19 service occupation tax liability measured by receipts or
20 selling prices which such serviceman knows are not subject to
21 service occupation tax liability, or any seller or serviceman
22 who knowingly over-collects or attempts to over-collect use
23 tax, service occupation tax, or service use tax or an amount
24 purporting to be reimbursement for service occupation tax
25 liability in a transaction which is subject to the taxes tax
26 that are is imposed by Articles 15, 20, or 25 this Act, shall
27 be guilty of a Class 4 felony for each offense. This
28 paragraph does not apply to an amount collected (i) by the
29 seller or serviceman as use tax or service use tax on
30 receipts or selling prices or (ii) by the serviceman as
31 reimbursement for the serviceman's service occupation tax
32 liability on receipts or selling prices which are subject to
33 tax under Articles 15, 20, or 25 which are subject to tax
34 under this Act as long as such collection is made in
-961- LRB9000671KDdvA
1 compliance with the tax collection brackets prescribed by the
2 Department in its rules and regulations.
3 A prosecution for any act in violation of this Section
4 may be commenced at any time within 3 years of the commission
5 of that act.
6 This Section does not apply if the violation in a
7 particular case also constitutes a criminal violation of
8 Section 80-5.
9 (b) For purposes of the use tax and the service use tax,
10 any taxpayer or agent of a taxpayer who with the intent to
11 defraud purports to make a payment due to the Department by
12 issuing or delivering a check or other order upon a real or
13 fictitious depository for the payment of money, knowing that
14 it will not be paid by the depository, shall be guilty of a
15 deceptive practice in violation of Section 17-1 of the
16 Criminal Code of 1961, as amended.
17 (c) For purposes of the service occupation tax, if the
18 violation in a particular case also constitutes a criminal
19 violation of the provisions applying to the use tax then this
20 Section shall not apply to the violation of the provisions
21 applying to the service occupation tax.
22 (d) For purposes of the service use tax, if the
23 violation in a particular case also constitutes a criminal
24 violation of the provisions applying to the use tax or the
25 provisions applying to the service occupation tax then this
26 Section shall not apply to the violation of the provisions
27 applying to the service use tax.
28 A prosecution for any Act in violation of this Section
29 may be commenced at any time within 3 years of the commission
30 of that Act.
31 This Section does not apply if the violation in a
32 particular case also constitutes a criminal violation of the
33 Retailers' Occupation Tax Act, the Use Tax Act or the Service
34 Occupation Tax Act.
-962- LRB9000671KDdvA
1 (Source: P.A. 88-480.)
2 (35 ILCS 110/16) (from Ch. 120, par. 439.46)
3 Section 25-10. Tax additional. Sec. 16. The tax herein
4 imposed in this Article shall be in addition to all other
5 occupation or privilege taxes imposed by the State of
6 Illinois or by any municipal corporation or political
7 subdivision thereof.
8 (Source: Laws 1961, p. 1757.)
9 (35 ILCS 110/17) (from Ch. 120, par. 439.47)
10 Section 55-10. Erroneous payment; creditor refund; use
11 tax; service occupation tax; service use tax.
12 (a) For purposes of the use tax, the service occupation
13 tax, and the service use tax, Sec. 17. if it shall appear
14 that an amount of tax or penalty or interest has been paid in
15 error under Article 15, Article 20, or Article 25 hereunder
16 to the Department by (i) a purchaser, as distinguished from
17 the retailer, (ii) a serviceman, or (iii) a purchaser, as
18 distinguished from the serviceman, whether such amount be
19 paid through a mistake of fact or an error of law, such
20 purchaser or serviceman may file a claim for credit or refund
21 with the Department. If it shall appear that an amount of tax
22 or penalty or interest has been paid in error to the
23 Department under Article 15, Article 20, or Article 25
24 hereunder by (i) a retailer who is required or authorized to
25 collect and remit the tax imposed by Article 15, (ii) a
26 supplier who is required or authorized to collect and remit
27 the tax imposed by Article 20, or (iii) a serviceman who is
28 required or authorized to collect the tax imposed by Article
29 25 and remit the Service Use Tax, whether such amount be paid
30 through a mistake of fact or an error of law, such retailer,
31 supplier, or serviceman may file a claim for credit or refund
32 with the Department, provided that no credit or refund shall
-963- LRB9000671KDdvA
1 be allowed or refund made for any amount paid by any such
2 retailer, supplier, or serviceman unless it shall appear that
3 he bore the burden of such amount and did not shift the
4 burden thereof to anyone else (as in the case of a duplicated
5 tax payment which the retailer, supplier, or serviceman made
6 to the Department and did not collect from anyone else), or
7 unless it shall appear that he or she or his or her legal
8 representative has unconditionally repaid such amount to his
9 vendee (1) who bore the burden thereof and has not shifted
10 such burden directly or indirectly in any manner whatsoever;
11 (2) who, if he has shifted such burden, has repaid
12 unconditionally such amount to his or her own vendee; , and
13 (3) who is not entitled to receive any reimbursement therefor
14 from any other source than from his vendor, nor to be
15 relieved of such burden in any other manner whatsoever.
16 (b) For purposes of the use tax and the service use tax,
17 if it shall appear that an amount of tax has been paid in
18 error under Article 15 or Article 25 by (i) the purchaser to
19 a retailer or (ii) hereunder by the purchaser to a
20 serviceman, who retained such tax as reimbursement for his or
21 her tax liability on the same sale under Article 10, in the
22 case of a retailer, or Article 20, in the case of a
23 serviceman of service under the Service Occupation Tax Act,
24 and who remitted the amount involved to the Department under
25 Article 10 or Article 20 paid such tax as required by the
26 Service Occupation Tax Act, whether such amount be paid
27 through a mistake of fact or an error of law, the procedure
28 for recovering such tax shall be as that prescribed in this
29 Article 55 Sections 17, 18, 19 and 20 of the Service
30 Occupation Tax Act.
31 (c) For purposes of the use tax, if a retailer who has
32 failed to pay use tax on gross receipts from retail sales is
33 required by the Department to pay such tax, such retailer,
34 without filing any formal claim with the Department, shall be
-964- LRB9000671KDdvA
1 allowed to take credit against such use tax liability to the
2 extent, if any, to which such retailer has paid an amount
3 equivalent to retailers' occupation tax or has paid use tax
4 in error to his or her vendor or vendors of the same tangible
5 personal property which such retailer bought for resale and
6 did not first use before selling it, and no penalty or
7 interest shall be charged to such retailer on the amount of
8 such credit. However, when such credit is allowed to the
9 retailer by the Department, the vendor is precluded from
10 refunding any of that tax to the retailer and filing a claim
11 for credit or refund with respect thereto with the
12 Department. The provisions of this amendatory Act shall be
13 applied retroactively, regardless of the date of the
14 transaction.
15 Section 55-15. Credit or refund; payment and interest.
16 Any credit or refund that is allowed under this Section
17 55-5 or 55-10 shall bear interest at the rate and in the
18 manner specified in the Uniform Penalty and Interest Act.
19 In case the Department determines that the claimant is
20 entitled to a refund, such refund shall be made only from
21 such appropriation as may be available for that purpose. If
22 it appears unlikely that the amount appropriated would permit
23 everyone having a claim allowed during the period covered by
24 such appropriation to elect to receive a cash refund, the
25 Department, by rule or regulation, shall provide for the
26 payment of refunds in hardship cases and shall define what
27 types of cases qualify as hardship cases.
28 Section 55-20. Claims for credit or refund.
29 (a) For purposes of the retailers' occupation tax,
30 claims for credit or refund shall be prepared and filed upon
31 forms provided by the Department. Each claim shall state: (1)
32 the name and principal business address of the claimant; (2)
-965- LRB9000671KDdvA
1 the period covered by the claim; (3) the total amount of
2 credit or refund claimed, giving in detail the net amount of
3 taxable receipts reported each month or other return period
4 used by the claimant as the basis for filing returns in the
5 period covered by the claim; (4) the total amount of tax paid
6 for each return period; (5) receipts upon which tax liability
7 is admitted for each return period; (6) the amount of
8 receipts on which credit or refund is claimed for each return
9 period; (7) the tax due for each return period as corrected;
10 (8) the amount of credit or refund claimed for each return
11 period; (9) reason or reasons why the amount, for which the
12 claim is filed, is alleged to have been paid in error; (10) a
13 list of the evidence (documentary or otherwise) which the
14 claimant has available to establish his compliance with
15 Section 55-5 as to bearing the burden of the tax for which he
16 seeks credit or refund; (11) payments or parts thereof (if
17 any) included in the claim and paid by the claimant under
18 protest; (12) sufficient information to identify any suit
19 which involves this Code, and to which the claimant is a
20 party; and (13) such other information as the Department may
21 reasonably require. Where the claimant is a corporation or
22 limited liability company, the claim filed on behalf of such
23 corporation or limited liability company shall be signed by
24 the president, vice-president, secretary or treasurer, by the
25 properly accredited agent of such corporation, or by a
26 manager, member, or properly accredited agent of the limited
27 liability company.
28 (b) For purposes of the use tax, the service occupation
29 tax, and the service use tax, any claim filed under Section
30 55-10 hereunder shall be filed upon a form prescribed and
31 furnished by the Department. The claim shall be signed by the
32 claimant (or by the claimant's legal representative if the
33 claimant shall have died or become a person under legal
34 disability), or by a duly authorized agent of the claimant or
-966- LRB9000671KDdvA
1 his or her legal representative.
2 (c) A claim for credit or refund shall be considered to
3 have been filed with the Department on the date upon which it
4 is received by the Department. Upon receipt of any claim for
5 credit or refund filed under this Code Act, any officer or
6 employee of the Department, authorized in writing by the
7 Director of Revenue to acknowledge receipt of such claims on
8 behalf of the Department, shall execute on behalf of the
9 Department, and shall deliver or mail to the claimant or his
10 or her duly authorized agent, a written receipt,
11 acknowledging that the claim has been filed with the
12 Department, describing the claim in sufficient detail to
13 identify it and stating the date upon which the claim was
14 received by the Department. Such written receipt shall be
15 prima facie evidence that the Department received the claim
16 described in such receipt and shall be prima facie evidence
17 of the date when such claim was received by the Department.
18 In the absence of such a written receipt, the records of the
19 Department as to when the claim was received by the
20 Department, or as to whether or not the claim was received at
21 all by the Department, shall be deemed to be prima facie
22 correct upon these questions in the event of any dispute
23 between the claimant (or his or her legal representative) and
24 the Department concerning these questions.
25 In case the Department determines that the claimant is
26 entitled to a refund, such refund shall be made only from
27 such appropriation as may be available for that purpose. If
28 it appears unlikely that the amount appropriated would permit
29 everyone having a claim allowed during the period covered by
30 such appropriation to elect to receive a cash refund, the
31 Department, by rule or regulation, shall provide for the
32 payment of refunds in hardship cases and shall define what
33 types of cases qualify as hardship cases.
34 (Source: P.A. 87-205.)
-967- LRB9000671KDdvA
1 (35 ILCS 110/18) (from Ch. 120, par. 439.48)
2 Section 55-25. Determination of claim; hearing.
3 (a) Sec. 18. As soon as practicable after a claim for
4 credit or refund is filed, the Department shall examine the
5 same and determine the amount of credit or refund to which
6 the claimant or the claimant's legal representative, in the
7 event that the claimant shall have died or become a person
8 under legal disability, is entitled and shall, by its Notice
9 of Tentative Determination of Claim, notify the claimant or
10 his or her legal representative of such determination, which
11 determination shall be prima facie correct. Proof of such
12 determination by the Department may be made at any hearing
13 before the Department or in any legal proceeding by a
14 reproduced copy of the Department's record relating thereto,
15 in the name of the Department under the certificate of the
16 Director of Revenue. Such reproduced copy shall, without
17 further proof, be admitted into evidence before the
18 Department or in any legal proceeding and shall be prima
19 facie proof of the correctness of the Department's
20 determination, as shown therein. If such claimant, or the
21 legal representative of a deceased claimant or a claimant who
22 is a person under legal disability, shall, for purposes of
23 the use tax, the service occupation tax, and the service use
24 tax, within 20 days after the Department's Notice of
25 Tentative Determination of Claim, or for purposes of the
26 retailers' occupation tax, within 60 days after the
27 Department's Notice of Tentative Determination of Claim, file
28 a protest thereto and request a hearing thereon, the
29 Department shall give notice to such claimant, or the legal
30 representative of a deceased claimant, or a claimant who is a
31 person under legal disability, of the time and place fixed
32 for such hearing, and shall hold a hearing in conformity with
33 the provisions of this Code Act, and pursuant thereto shall
34 issue its Final Determination of the amount, if any, found to
-968- LRB9000671KDdvA
1 be due as a result of such hearing, to such claimant, or the
2 legal representative of a deceased or incompetent claimant or
3 a claimant who is a person under legal disability.
4 (b) For purposes of the retailers' occupation tax only,
5 the Department's Final Determination may be reviewed by the
6 proper Circuit Court, in the same manner, within the same
7 time, upon the same terms and conditions and to the same
8 extent, as provided by Section 77-5 of this Code.
9 Section 55-30. Final determination of claim. If a
10 protest to the Department's Notice of Tentative Determination
11 of Claim is not filed within 20 days and a request for a
12 hearing thereon is not made as provided in Section 55-25
13 herein, the Notice shall thereupon become and operate as a
14 Final Determination; and, if the Department's Notice of
15 Tentative Determination, upon becoming a Final Determination,
16 indicates no amount due to the claimant, or, upon issuance of
17 a credit memorandum or refund for the amount, if any, found
18 by the Department to be due, the claim in all its aspects
19 shall be closed and no longer open to protest, hearing,
20 judicial review, or by any other proceeding or action
21 whatever, either before the Department or in any court of
22 this State. Claims for credit or refund hereunder must be
23 filed with and initially determined by the Department, the
24 remedy herein provided being exclusive; and no court shall
25 have jurisdiction to determine the merits of any claim except
26 upon review as provided in this Code Act.
27 (Source: P.A. 83-706.)
28 (35 ILCS 110/19) (from Ch. 120, par. 439.49)
29 Section 55-35. Limitations. Sec. 19. As to any claim
30 for credit or refund filed with the Department on and after
31 January 1 but on or before June 30 of any given year, no
32 amount of tax or penalty or interest erroneously paid (either
-969- LRB9000671KDdvA
1 in total or partial liquidation of a tax or penalty or
2 interest under this Code Act) more than 3 years prior to such
3 January 1 shall be credited or refunded, and as to any such
4 claim filed on and after July 1 but on or before December 31
5 of any given year, no amount of tax or penalty or interest
6 erroneously paid (either in total or partial liquidation of a
7 tax or penalty or interest under this Code Act) more than 3
8 years prior to such July 1 shall be credited or refunded
9 except that, for purposes of the retailers' occupation tax,
10 if both the Department and the taxpayer have agreed to an
11 extension of time to issue a notice of tax liability as
12 provided in Section 50-145 of this Code, such claim may be
13 filed at any time prior to the expiration of the period
14 agreed upon. No claim shall be allowed for any amount paid
15 to the Department, whether paid voluntarily or involuntarily,
16 if paid in total or partial liquidation of an assessment
17 which had become final before the claim for credit or refund
18 to recover the amount so paid is filed with the Department,
19 or if paid in total or partial liquidation of a judgment or
20 order of court.
21 (Source: P.A. 79-1366; 79-1365.)
22 (35 ILCS 110/20) (from Ch. 120, par. 439.50)
23 Section 55-40. Application of credit or refund against
24 tax. For purposes of the use tax, the service occupation
25 tax, and the service use tax, Sec. 20. if it is determined
26 that the Department should issue a credit or refund under
27 this Code hereunder, the Department may first apply the
28 amount thereof against any amount of tax or penalty or
29 interest due under this Code hereunder, or under the Service
30 Occupation Tax Act, the Retailers' Occupation Tax Act, the
31 Use Tax Act, the Municipal Retailers' Occupation Tax Act, the
32 Municipal Use Tax Act, the Municipal Service Occupation Tax
33 Act, the County Retailers' Occupation Tax Act, the County
-970- LRB9000671KDdvA
1 Supplementary Retailers' Occupation Tax Act, the County
2 Service Occupation Tax Act, the County Supplementary Service
3 Occupation Tax Act, the County Use Tax Act, the County
4 Supplementary Use Tax Act, Section 4 of the Water Commission
5 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
6 the Local Mass Transit District Act, or subsections (e), (f)
7 and (g) of Section 4.03 of the Regional Transportation
8 Authority Act, from the person entitled to such credit or
9 refund. For this purpose, if proceedings are pending to
10 determine whether or not any tax or penalty or interest is
11 due under this Code hereunder, or under the Service
12 Occupation Tax Act, the Retailers' Occupation Tax Act, the
13 Use Tax Act, the Municipal Retailers' Occupation Tax Act, the
14 Municipal Use Tax Act, the Municipal Service Occupation Tax
15 Act, the County Retailers' Occupation Tax Act, the County
16 Supplementary Retailers' Occupation Tax Act, the County
17 Service Occupation Tax Act, the County Supplementary Service
18 Occupation Tax Act, the County Use Tax Act, the County
19 Supplementary Use Tax Act, Section 4 of the Water Commission
20 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
21 the Local Mass Transit District Act, or subsections (e), (f)
22 and (g) of Section 4.03 of the Regional Transportation
23 Authority Act, from such person, the Department may withhold
24 issuance of the credit or refund pending the final
25 disposition of such proceedings and may apply such credit or
26 refund against any amount found to be due to the Department
27 as a result of such proceedings. The balance, if any, of the
28 credit or refund shall be issued to the person entitled
29 thereto.
30 Any credit memorandum issued hereunder may be used by the
31 authorized holder thereof to pay any tax or penalty or
32 interest due or to become due under this Code or under Act,
33 the Service Occupation Tax Act, the Retailers' Occupation Tax
34 Act, the Use Tax Act, the Municipal Retailers' Occupation Tax
-971- LRB9000671KDdvA
1 Act, the Municipal Use Tax Act, the Municipal Service
2 Occupation Tax Act, the County Retailers' Occupation Tax Act,
3 the County Supplementary Retailers' Occupation Tax Act, the
4 County Service Occupation Tax Act, the County Supplementary
5 Service Occupation Tax Act, the County Use Tax Act, the
6 County Supplementary Use Tax Act, Section 4 of the Water
7 Commission Act of 1985, subsections (b), (c) and (d) of
8 Section 5.01 of the Local Mass Transit District Act, or
9 subsections (e), (f) and (g) of Section 4.03 of the Regional
10 Transportation Authority Act, from such holder. Subject to
11 reasonable rules of the Department, a credit memorandum
12 issued hereunder may be assigned by the holder thereof to any
13 other person for use in paying tax or penalty or interest
14 which may be due or become due under this Code or, for
15 purposes of the service occupation tax and the service use
16 tax, due under Act, the Service Occupation Tax Act, the
17 Retailers' Occupation Tax Act, the Use Tax Act, the Municipal
18 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
19 Municipal Service Occupation Tax Act, the County Retailers'
20 Occupation Tax Act, the County Supplementary Retailers'
21 Occupation Tax Act, the County Service Occupation Tax Act,
22 the County Supplementary Service Occupation Tax Act, the
23 County Use Tax Act, the County Supplementary Use Tax Act,
24 Section 4 of the Water Commission Act of 1985, subsections
25 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
26 District Act, or subsections (e), (f) and (g) of Section 4.03
27 of the Regional Transportation Authority Act, from the
28 assignee.
29 (b) For purposes of this Code, in any case in which
30 there has been an erroneous refund of tax payable under this
31 Code Act, a notice of tax liability may be issued at any time
32 within 3 years from the making of that refund, or within 5
33 years from the making of that refund if it appears that any
34 part of the refund was induced by fraud or the
-972- LRB9000671KDdvA
1 misrepresentation of a material fact. The amount of any
2 proposed assessment set forth in the notice shall be limited
3 to the amount of the erroneous refund.
4 (Source: P.A. 87-876.)
5 (35 ILCS 110/20a) (from Ch. 120, par. 439.50a)
6 Section 75-5. Application of the Administrative
7 Procedure Act. Sec. 20a. The Illinois Administrative
8 Procedure Act is hereby expressly adopted and shall apply to
9 all administrative rules and procedures of the Department of
10 Revenue under this Code Act, except that (1) paragraph (b) of
11 Section 5-10 of the Illinois Administrative Procedure Act
12 does not apply to final orders, decisions and opinions of the
13 Department, (2) subparagraph (a)(2) (a)2 of Section 5-10 of
14 the Illinois Administrative Procedure Act does not apply to
15 forms established by the Department for use under this Code
16 Act, and (3) the provisions of Section 10-45 of the Illinois
17 Administrative Procedure Act regarding proposals for decision
18 are excluded and not applicable to the Department under this
19 Code Act.
20 (Source: P.A. 88-45.)
21 (35 ILCS 110/21) (from Ch. 120, par. 439.51)
22 Section 90-35. Severability. Sec. 21. If any clause,
23 sentence, Section, provision or part of this Code Act or the
24 application thereof to any person or circumstance shall be
25 adjudged to be unconstitutional, the remainder of this Code
26 Act or its application to persons or circumstances other than
27 those to which it is held invalid, shall not be affected
28 thereby. In particular, if any provision which exempts or has
29 the effect of exempting some class of users or servicemen or
30 some kind of use or service from the taxes tax imposed by
31 this Code Act should be held to constitute or to result in an
32 invalid classification or to be unconstitutional for some
-973- LRB9000671KDdvA
1 other reason, such provision shall be deemed to be severable,
2 with the remainder of this Code Act without said provision
3 being held constitutional.
4 (Source: Laws 1961, p. 1757.)
5 Section 5-5. Acquired outside this State. For purposes
6 of the use tax, "acquired outside this State", in addition to
7 its usual and popular meaning, also means the delivery,
8 outside Illinois, of tangible personal property that is
9 purchased in this State and delivered from a point in this
10 State to a point of delivery outside this State.
11 Section 5-10. Bulk vending machine. For purposes of the
12 retailers' occupation tax and the use tax, "bulk vending
13 machine" means a nonelectrically operated vending machine,
14 containing unsorted confections, nuts or other merchandise
15 which, when a coin of a denomination not larger than one cent
16 is inserted, are dispensed in equal portions, at random and
17 without selection by the customer.
18 Section 5-40. Gasohol. "Gasohol" means motor fuel that
19 is no more than 90% gasoline and at least 10% denatured
20 ethanol that contains no more than 1.25% water by weight.
21 Section 5-50. Gross receipts. For purposes of the
22 retailers' occupation tax, "gross receipts" from the sales of
23 tangible personal property at retail means the total selling
24 price or the amount of such sales as defined in this Code. In
25 the case of charge and time sales, the amount thereof shall
26 be included only as and when payments are received by the
27 seller. Receipts or other consideration derived by a seller
28 from the sale, transfer or assignment of accounts receivable
29 to a wholly owned subsidiary will not be deemed payments
30 prior to the time the purchaser makes payment on such
-974- LRB9000671KDdvA
1 accounts.
2 Section 5-55. Like kind and character. For purposes of
3 the retailers' occupation tax and the use tax, the phrase
4 "like kind and character" shall be liberally construed
5 (including but not limited to any form of motor vehicle for
6 any form of motor vehicle, or any kind of farm or
7 agricultural implement for any other kind of farm or
8 agricultural implement), while not including a kind of item
9 which, if sold at retail by that retailer, would be exempt
10 from retailers' occupation tax and use tax as an isolated or
11 occasional sale.
12 Section 5-85. Purchase at retail. For purposes of the
13 use tax, "purchase at retail" means the acquisition of the
14 ownership of or title to tangible personal property through a
15 sale at retail.
16 Section 5-100. Reseller of motor fuel. For purposes of
17 the retailers' occupation tax, "reseller of motor fuel" means
18 any person engaged in the business of selling or delivering
19 or transferring title of motor fuel to another person other
20 than for use or consumption. No person shall act as a
21 reseller of motor fuel within this State without first being
22 registered as a reseller pursuant to Section 35-50 or a
23 retailer pursuant to Section 35-5.
24 Section 5-105. Retailer.
25 (a) For purposes of the use tax, "retailer" means and
26 includes every person engaged in the business of making sales
27 at retail as defined in Section 5-115.
28 A person who holds himself or herself out as being
29 engaged (or who habitually engages) in selling tangible
30 personal property at retail is a retailer hereunder with
-975- LRB9000671KDdvA
1 respect to such sales (and not primarily in a service
2 occupation) notwithstanding the fact that such person designs
3 and produces such tangible personal property on special order
4 for the purchaser and in such a way as to render the property
5 of value only to such purchaser, if such tangible personal
6 property so produced on special order serves substantially
7 the same function as stock or standard items of tangible
8 personal property that are sold at retail.
9 A person whose activities are organized and conducted
10 primarily as a not-for-profit service enterprise, and who
11 engages in selling tangible personal property at retail
12 (whether to the public or merely to members and their guests)
13 is a retailer with respect to such transactions, excepting
14 only a person organized and operated exclusively for
15 charitable, religious or educational purposes either (1), to
16 the extent of sales by such person to its members, students,
17 patients or inmates of tangible personal property to be used
18 primarily for the purposes of such person, or (2), to the
19 extent of sales by such person of tangible personal property
20 which is not sold or offered for sale by persons organized
21 for profit. The selling of school books and school supplies
22 by schools at retail to students is not "primarily for the
23 purposes of" the school which does such selling. This
24 paragraph does not apply to nor subject to taxation
25 occasional dinners, social or similar activities of a person
26 organized and operated exclusively for charitable, religious
27 or educational purposes, whether or not such activities are
28 open to the public.
29 A person who is the recipient of a grant or contract
30 under Title VII of the Older Americans Act of 1965 (P.L.
31 92-258) and serves meals to participants in the federal
32 Nutrition Program for the Elderly in return for contributions
33 established in amount by the individual participant pursuant
34 to a schedule of suggested fees as provided for in the
-976- LRB9000671KDdvA
1 federal Act is not a retailer under Article 15 with respect
2 to such transactions.
3 Persons who engage in the business of transferring
4 tangible personal property upon the redemption of trading
5 stamps are retailers hereunder when engaged in such business.
6 The isolated or occasional sale of tangible personal
7 property at retail by a person who does not hold himself out
8 as being engaged (or who does not habitually engage) in
9 selling such tangible personal property at retail or a sale
10 through a bulk vending machine does not make such person a
11 retailer hereunder. However, any person who is engaged in a
12 business which is not subject to the tax imposed by Article
13 10 because of involving the sale of or a contract to sell
14 real estate or a construction contract to improve real
15 estate, but who, in the course of conducting such business,
16 transfers tangible personal property to users or consumers in
17 the finished form in which it was purchased, and which does
18 not become real estate, under any provision of a construction
19 contract or real estate sale or real estate sales agreement
20 entered into with some other person arising out of or because
21 of such nontaxable business, is a retailer to the extent of
22 the value of the tangible personal property so transferred.
23 If, in such transaction, a separate charge is made for the
24 tangible personal property so transferred, the value of such
25 property, for the purposes of Article 15, is the amount so
26 separately charged, but not less than the cost of such
27 property to the transferor; if no separate charge is made,
28 the value of such property, for the purposes of Article 15,
29 is the cost to the transferor of such tangible personal
30 property.
31 (b) For purposes of the retailers' occupation tax and
32 the use tax, a person who is engaged in the business of
33 leasing or renting motor vehicles to others and who, in
34 connection with such business sells any used motor vehicle to
-977- LRB9000671KDdvA
1 a purchaser for his use and not for the purpose of resale, is
2 a retailer engaged in the business of selling tangible
3 personal property at retail under Articles 10 and 15 to the
4 extent of the value of the vehicle sold. For the purpose of
5 this Section, "motor vehicle" has the meaning prescribed in
6 Section 1-157 of the Illinois Vehicle Code. (Nothing
7 provided herein shall affect liability incurred under
8 Articles 10 and 15 because of the sale at retail of such
9 motor vehicles to a lessor or use of such motor vehicles by a
10 lessor.)
11 Section 5-110. Retailer maintaining a place of business
12 in this State. For purposes of the use tax, "retailer
13 maintaining a place of business in this State", or any like
14 term, means and includes any of the following retailers:
15 (1) A retailer having or maintaining within this
16 State, directly or by a subsidiary, an office,
17 distribution house, sales house, warehouse or other place
18 of business, or any agent or other representative
19 operating within this State under the authority of the
20 retailer or its subsidiary, irrespective of whether such
21 place of business or agent or other representative is
22 located here permanently or temporarily, or whether such
23 retailer or subsidiary is licensed to do business in this
24 State. However, the ownership of property that is located
25 at the premises of a printer with which the retailer has
26 contracted for printing and that consists of the final
27 printed product, property that becomes a part of the
28 final printed product, or copy from which the printed
29 product is produced shall not result in the retailer
30 being deemed to have or maintain an office, distribution
31 house, sales house, warehouse, or other place of business
32 within this State.
33 (2) A retailer soliciting orders for tangible
-978- LRB9000671KDdvA
1 personal property by means of a telecommunication or
2 television shopping system (which utilizes toll free
3 numbers) which is intended by the retailer to be
4 broadcast by cable television or other means of
5 broadcasting, to consumers located in this State.
6 (3) A retailer, pursuant to a contract with a
7 broadcaster or publisher located in this State,
8 soliciting orders for tangible personal property by means
9 of advertising which is disseminated primarily to
10 consumers located in this State and only secondarily to
11 bordering jurisdictions.
12 (4) A retailer soliciting orders for tangible
13 personal property by mail if the solicitations are
14 substantial and recurring and if the retailer benefits
15 from any banking, financing, debt collection,
16 telecommunication, or marketing activities occurring in
17 this State or benefits from the location in this State of
18 authorized installation, servicing, or repair facilities.
19 (5) A retailer that is owned or controlled by the
20 same interests that own or control any retailer engaging
21 in business in the same or similar line of business in
22 this State.
23 (6) A retailer having a franchisee or licensee
24 operating under its trade name if the franchisee or
25 licensee is required to collect the tax under this
26 Section.
27 (7) A retailer, pursuant to a contract with a cable
28 television operator located in this State, soliciting
29 orders for tangible personal property by means of
30 advertising which is transmitted or distributed over a
31 cable television system in this State.
32 (8) A retailer engaging in activities in Illinois,
33 which activities in the state in which the retail
34 business engaging in such activities is located would
-979- LRB9000671KDdvA
1 constitute maintaining a place of business in that state.
2 Section 5-140. Transfer. For purposes of the service
3 occupation tax, "transfer" means any transfer of the title to
4 property or of the ownership of property whether or not the
5 transferor retains title as security for the payment of
6 amounts due him from the transferee.
7 Section 5-150. Watercraft. For purposes of the
8 retailers' occupation tax and the use tax, "watercraft" means
9 a Class 2, Class 3, or Class 4 watercraft as defined in
10 Section 3-2 of the Boat Registration and Safety Act, a
11 personal watercraft, or any boat equipped with an inboard
12 motor.
13 Section 10-5. Tax imposed. A tax is imposed upon persons
14 engaged in the business of selling at retail tangible
15 personal property, including computer software, and including
16 photographs, negatives, and positives that are the product of
17 photoprocessing, but not including products of
18 photoprocessing produced for use in motion pictures for
19 public commercial exhibition. The tax imposed in this Article
20 shall be known as the "retailers' occupation tax".
21 Section 10-10. Tax additional. The tax imposed in this
22 Article shall be in addition to all other occupation or
23 privilege taxes imposed by the State of Illinois or by any
24 municipal corporation or political subdivision thereof.
25 Section 10-15. Rate of tax. Unless otherwise provided
26 in this Section, the tax imposed by this Article is at the
27 rate of 6.25% of gross receipts from sales of tangible
28 personal property made in the course of business.
29 With respect to gasohol, as defined in Section 5-40, the
-980- LRB9000671KDdvA
1 tax imposed by this Article applies to 70% of the proceeds of
2 sales made on or after January 1, 1990, and before July 1,
3 1999, and to 100% of the proceeds of sales made thereafter,
4 except that from July 1, 1997 to July 1, 1999, the rate shall
5 be 85% for gasohol sold in this State during the 12 months
6 beginning July 1 following any calendar year for which the
7 Department has determined that the percentages in Section 10
8 of the Gasohol Fuels Tax Abatement Act have not been met.
9 With respect to food for human consumption that is to be
10 consumed off the premises where it is sold (other than
11 alcoholic beverages, soft drinks, and food that has been
12 prepared for immediate consumption) and prescription and
13 nonprescription medicines, drugs, medical appliances,
14 modifications to a motor vehicle for the purpose of rendering
15 it usable by a disabled person, and insulin, urine testing
16 materials, syringes, and needles used by diabetics, for human
17 use, the tax is imposed at the rate of 1%. For the purposes
18 of this Section, the term "soft drinks" means any complete,
19 finished, ready-to-use, non-alcoholic drink, whether
20 carbonated or not, including but not limited to soda water,
21 cola, fruit juice, vegetable juice, carbonated water, and all
22 other preparations commonly known as soft drinks of whatever
23 kind or description that are contained in any closed or
24 sealed bottle, can, carton, or container, regardless of size.
25 "Soft drinks" does not include coffee, tea, non-carbonated
26 water, infant formula, milk or milk products as defined in
27 the Grade A Pasteurized Milk and Milk Products Act, or drinks
28 containing 50% or more natural fruit or vegetable juice.
29 Notwithstanding any other provisions of this Code, "food
30 for human consumption that is to be consumed off the premises
31 where it is sold" includes all food sold through a vending
32 machine, except soft drinks and food products that are
33 dispensed hot from a vending machine, regardless of the
34 location of the vending machine.
-981- LRB9000671KDdvA
1 Section 10-20. Purchaser refunds. If a seller collects
2 an amount (however designated) that purports to reimburse the
3 seller for retailers' occupation tax liability measured by
4 receipts that are not subject to retailers' occupation tax,
5 or if a seller, in collecting an amount (however designated)
6 that purports to reimburse the seller for retailers'
7 occupation tax liability measured by receipts that are
8 subject to tax under this Article, collects more from the
9 purchaser than the seller's retailers' occupation tax
10 liability on the transaction, the purchaser shall have a
11 legal right to claim a refund of that amount from the seller.
12 If, however, that amount is not refunded to the purchaser for
13 any reason, the seller is liable to pay that amount to the
14 Department. This paragraph does not apply to an amount
15 collected by the seller as reimbursement for the seller's
16 retailers' occupation tax liability on receipts that are
17 subject to tax under this Article as long as the collection
18 is made in compliance with the tax collection brackets
19 prescribed by the Department in its rules and regulations.
20 Section 10-25. Serviceman transfer. Tangible personal
21 property purchased by a serviceman, as defined in Section
22 5-125, is subject to the tax imposed by this Article when
23 purchased for transfer by the serviceman incidental to
24 completion of a maintenance agreement.
25 Section 10-30. Prepayment of tax by motor fuel retailer.
26 Any person engaged in the business of selling motor fuel at
27 retail, as defined in the Motor Fuel Tax Law, and who is not
28 a licensed distributor or supplier, as defined in the Motor
29 Fuel Tax Law, shall prepay to his or her distributor,
30 supplier, or other reseller of motor fuel a portion of the
31 tax imposed by this Article if the distributor, supplier, or
32 other reseller of motor fuel is registered under Sections
-982- LRB9000671KDdvA
1 35-5 through 35-50 of this Code. The prepayment requirement
2 provided for in this Section does not apply to liquid propane
3 gas.
4 The retailers' occupation tax paid to the distributor,
5 supplier, or other reseller shall be an amount equal to $0.04
6 per gallon of the motor fuel, except gasohol as defined in
7 Section 5-40 of this Code which shall be an amount equal to
8 $0.03 per gallon, purchased from the distributor, supplier,
9 or other reseller.
10 Any person engaged in the business of selling motor fuel
11 at retail shall be entitled to a credit against tax due under
12 this Article in an amount equal to the tax paid to the
13 distributor, supplier, or other reseller.
14 Every distributor, supplier, or other reseller registered
15 as provided in Sections 35-5 through 35-50 of this Code shall
16 remit the prepaid tax on all motor fuel that is due from any
17 person engaged in the business of selling at retail motor
18 fuel with the returns filed under Section 10-40 or Sections
19 50-5 through 50-140 of this Code, but the vendors discount
20 provided in Sections 50-5 through 50-140 shall not apply to
21 the amount of prepaid tax that is remitted. Any distributor
22 or supplier who fails to properly collect and remit the tax
23 shall be liable for the tax. For purposes of this Section,
24 the prepaid tax is due on invoiced gallons sold during a
25 month by the 20th day of the following month.
26 Section 10-35. Motor fuel distributor or supplier;
27 statement of purchases. Every such distributor or supplier
28 shall deliver a statement of tax paid to each purchaser and
29 the Department of Revenue not later than the 20th day of the
30 month following the month during which a transaction
31 occurred, showing: the number of gallons of motor fuel sold
32 or distributed during the preceding month to that purchaser;
33 identifying the purchaser to whom it was sold or distributed,
-983- LRB9000671KDdvA
1 including the purchaser's tax registration number; and the
2 amount collected from the purchaser.
3 Section 10-40. Reseller of motor fuel; filing of
4 returns. Resellers of motor fuel shall file a return by the
5 20th of the month following the month during which a
6 transaction occurred showing an itemized statement of the
7 amount of motor fuel sold, distributed and used by the
8 reseller, identifying the purchaser to whom it was sold
9 including the purchaser's tax registration number, the amount
10 of tax collected from the purchaser, or delivery point if the
11 motor fuel was delivered to an unregistered purchaser outside
12 this State, name and address and the total quantity of motor
13 fuel sold or transferred to each purchaser in the preceding
14 calendar month and such other information as the Department
15 may reasonably require.
16 Section 10-45. Procedures for filing return of motor
17 fuel resellers. All provisions of Sections 30-30, 35-75,
18 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
19 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
20 apply to the retailers' occupation tax shall apply, as far as
21 practicable, to returns filed pursuant to Section 10-40.
22 Section 15-5. Tax imposed. A tax is imposed upon the
23 privilege of using in this State tangible personal property
24 purchased at retail from a retailer, including computer
25 software, and including photographs, negatives, and positives
26 that are the product of photoprocessing, but not including
27 products of photoprocessing produced for use in motion
28 pictures for commercial exhibition. The tax imposed in this
29 Article shall be known as the "use tax".
30 Section 15-10. Tax additional. The tax imposed in this
-984- LRB9000671KDdvA
1 Article shall be in addition to all other occupation or
2 privilege taxes imposed by the State of Illinois or by any
3 municipal corporation or political subdivision thereof.
4 Section 15-15. Rate of tax. Unless otherwise provided
5 in this Section, the tax imposed by this Article is at the
6 rate of 6.25% of either the selling price or the fair market
7 value, if any, of the tangible personal property. In all
8 cases where property functionally used or consumed is the
9 same as the property that was purchased at retail, then the
10 tax is imposed on the selling price of the property. In all
11 cases where property functionally used or consumed is a
12 by-product or waste product that has been refined,
13 manufactured, or produced from property purchased at retail,
14 then the tax is imposed on the lower of the fair market
15 value, if any, of the specific property so used in this State
16 or on the selling price of the property purchased at retail.
17 For purposes of this Section "fair market value" means the
18 price at which property would change hands between a willing
19 buyer and a willing seller, neither being under any
20 compulsion to buy or sell and both having reasonable
21 knowledge of the relevant facts. The fair market value shall
22 be established by Illinois sales by the taxpayer of the same
23 property as that functionally used or consumed, or if there
24 are no such sales by the taxpayer, then comparable sales or
25 purchases of property of like kind and character in Illinois.
26 With respect to gasohol, the tax imposed by this Article
27 applies to 70% of the proceeds of sales made on or after
28 January 1, 1990, and before July 1, 1999, and to 100% of the
29 proceeds of sales made thereafter, except that from July 1,
30 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
31 in this State during the 12 months beginning July 1 following
32 any calendar year for which the Department has determined
33 that the percentages in Section 10 of the Gasohol Fuels Tax
-985- LRB9000671KDdvA
1 Abatement Act have not been met.
2 With respect to food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances,
7 modifications to a motor vehicle for the purpose of rendering
8 it usable by a disabled person, and insulin, urine testing
9 materials, syringes, and needles used by diabetics, for human
10 use, the tax is imposed at the rate of 1%. For the purposes
11 of this Section, the term "soft drinks" means any complete,
12 finished, ready-to-use, non-alcoholic drink, whether
13 carbonated or not, including but not limited to soda water,
14 cola, fruit juice, vegetable juice, carbonated water, and all
15 other preparations commonly known as soft drinks of whatever
16 kind or description that are contained in any closed or
17 sealed bottle, can, carton, or container, regardless of size.
18 "Soft drinks" does not include coffee, tea, non-carbonated
19 water, infant formula, milk or milk products as defined in
20 the Grade A Pasteurized Milk and Milk Products Act, or drinks
21 containing 50% or more natural fruit or vegetable juice.
22 Notwithstanding any other provisions of this Code, "food
23 for human consumption that is to be consumed off the premises
24 where it is sold" includes all food sold through a vending
25 machine, except soft drinks and food products that are
26 dispensed hot from a vending machine, regardless of the
27 location of the vending machine.
28 If the property that is purchased at retail from a
29 retailer is acquired outside Illinois and used outside
30 Illinois before being brought to Illinois for use here and is
31 taxable under this Article, the "selling price" on which the
32 tax is computed shall be reduced by an amount that represents
33 a reasonable allowance for depreciation for the period of
34 prior out-of-state use.
-986- LRB9000671KDdvA
1 Section 15-20. Collection. The tax imposed by this
2 Article shall be collected from the purchaser by a retailer
3 maintaining a place of business in this State or a retailer
4 authorized by the Department under Section 60-10 of this
5 Code, and shall be remitted to the Department as provided in
6 Sections 50-5 through 50-140 of this Code.
7 The tax imposed by this Article that is not paid to a
8 retailer under this Section shall be paid to the Department
9 directly by any person using the property within this State
10 as provided in Section 50-155 of this Code.
11 Retailers shall collect the tax from users by adding the
12 tax to the selling price of tangible personal property, when
13 sold for use, in the manner prescribed by the Department.
14 The Department may adopt and promulgate reasonable rules and
15 regulations for the adding of the tax by retailers to selling
16 prices by prescribing bracket systems for the purpose of
17 enabling the retailers to add and collect, as far as
18 practicable, the amount of the tax.
19 If a seller collects use tax measured by receipts that
20 are not subject to use tax, or if a seller, in collecting use
21 tax measured by receipts that are subject to tax under this
22 Article, collects more from the purchaser than the required
23 amount of the use tax on the transaction, the purchaser shall
24 have a legal right to claim a refund of that amount from the
25 seller. If, however, that amount is not refunded to the
26 purchaser for any reason, the seller is liable to pay that
27 amount to the Department. This paragraph does not apply to
28 an amount collected by the seller as use tax on receipts that
29 are subject to tax under this Article as long as the
30 collection is made in compliance with the tax collection
31 brackets prescribed by the Department in its rules and
32 regulations.
33 Section 15-25. R.O.T. nontaxability. If the seller of
-987- LRB9000671KDdvA
1 tangible personal property for use would not be taxable under
2 Article 10 of this Code despite all elements of the sale
3 occurring in Illinois, then the tax imposed by this Article
4 does not apply to the use of the tangible personal property
5 in this State.
6 Section 15-30. Serviceman transfer. Tangible personal
7 property purchased by a serviceman, as defined in Section
8 5-125, is subject to the tax imposed by this Article when
9 purchased for transfer by the serviceman incidental to
10 completion of a maintenance agreement.
11 Section 15-35. Method of stating tax. The tax imposed
12 by this Article shall when collected be stated as a distinct
13 item separate and apart from the selling price of the
14 tangible personal property. However, where it is not possible
15 to state the sales tax separately in situations such as sales
16 from vending machines or sales of liquor by the drink the
17 Department may by rule exempt such sales from this
18 requirement so long as purchasers are notified by a sign that
19 the tax is included in the selling price.
20 Section 20-5. Tax imposed. A tax is imposed upon all
21 persons engaged in the business of making sales of service
22 (referred to as "servicemen") on all tangible personal
23 property transferred as an incident of a sale of service,
24 including computer software, and including photographs,
25 negatives, and positives that are the product of
26 photoprocessing, but not including products of
27 photoprocessing produced for use in motion pictures for
28 public commercial exhibition. The tax imposed in this Article
29 shall be known as the "service occupation tax".
30 Section 20-10. Tax additional. The tax imposed in this
-988- LRB9000671KDdvA
1 Article shall be in addition to all other occupation or
2 privilege taxes imposed by the State of Illinois or by any
3 municipal corporation or political subdivision thereof.
4 Section 20-15. Rate of tax. Unless otherwise provided in
5 this Section, the tax imposed by this Article is at the rate
6 of 6.25% of the "selling price", as defined in Section 5-120,
7 of the tangible personal property. For the purpose of
8 computing this tax, in no event shall the "selling price" be
9 less than the cost price to the serviceman of the tangible
10 personal property transferred. The selling price of each
11 item of tangible personal property transferred as an incident
12 of a sale of service may be shown as a distinct and separate
13 item on the serviceman's billing to the service customer. If
14 the selling price is not so shown, the selling price of the
15 tangible personal property is deemed to be 50% of the
16 serviceman's entire billing to the service customer. When,
17 however, a serviceman contracts to design, develop, and
18 produce special order machinery or equipment, the tax imposed
19 by this Article shall be based on the serviceman's cost price
20 of the tangible personal property transferred incident to the
21 completion of the contract.
22 With respect to gasohol, as defined in Section 5-40, the
23 tax imposed by this Article shall apply to 70% of the cost
24 price of property transferred as an incident to the sale of
25 service on or after January 1, 1990, and before July 1, 1999,
26 and to 100% of the cost price thereafter, except that from
27 July 1, 1997 to July 1, 1999, the rate shall be 85% for
28 gasohol sold in this State during the 12 months beginning
29 July 1 following any calendar year for which the Department
30 has determined that the percentages in Section 10 of the
31 Gasohol Fuels Tax Abatement Act have not been met.
32 At the election of any registered serviceman made for
33 each fiscal year, sales of service in which the aggregate
-989- LRB9000671KDdvA
1 annual cost price of tangible personal property transferred
2 as an incident to the sales of service is less than 35%, or
3 75% in the case of servicemen transferring prescription drugs
4 or servicemen engaged in graphic arts production, of the
5 aggregate annual total gross receipts from all sales of
6 service, the tax imposed by this Article shall be based on
7 the serviceman's cost price of the tangible personal property
8 transferred incident to the sale of those services.
9 The tax shall be imposed at the rate of 1% on food
10 prepared for immediate consumption and transferred incident
11 to a sale of service subject to this Article or Article 25 by
12 an entity licensed under the Hospital Licensing Act or the
13 Nursing Home Care Act. The tax shall also be imposed at the
14 rate of 1% on food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption and is not otherwise
18 included in this paragraph) and prescription and
19 nonprescription medicines, drugs, medical appliances,
20 modifications to a motor vehicle for the purpose of rendering
21 it usable by a disabled person, and insulin, urine testing
22 materials, syringes, and needles used by diabetics, for human
23 use. For the purposes of this Section, the term "soft
24 drinks" means any complete, finished, ready-to-use,
25 non-alcoholic drink, whether carbonated or not, including but
26 not limited to soda water, cola, fruit juice, vegetable
27 juice, carbonated water, and all other preparations commonly
28 known as soft drinks of whatever kind or description that are
29 contained in any closed or sealed can, carton, or container,
30 regardless of size. "Soft drinks" does not include coffee,
31 tea, non-carbonated water, infant formula, milk or milk
32 products as defined in the Grade A Pasteurized Milk and Milk
33 Products Act, or drinks containing 50% or more natural fruit
34 or vegetable juice.
-990- LRB9000671KDdvA
1 Notwithstanding any other provisions of this Code, "food
2 for human consumption that is to be consumed off the premises
3 where it is sold" includes all food sold through a vending
4 machine, except soft drinks and food products that are
5 dispensed hot from a vending machine, regardless of the
6 location of the vending machine.
7 Section 20-20. Collection. The tax imposed by this
8 Article shall be paid to the Department by any serviceman
9 transferring tangible personal property as an incident to a
10 sale of service taxable under this Article. If a serviceman
11 has paid service occupation tax to his or her supplier based
12 upon the cost price of tangible personal property before
13 January 1, 1990, or in error on or after January 1, 1990, the
14 serviceman, without filing any formal claims with the
15 Department, shall be allowed to take credit against his or
16 her service occupation tax liability based upon the selling
17 price of that property transferred in the course of providing
18 service to the extent of the amount of the tax so paid.
19 If any serviceman collects an amount (however designated)
20 that purports to reimburse the serviceman for service
21 occupation tax liability measured by receipts or selling
22 prices that are not subject to service occupation tax, or if
23 any serviceman, in collecting an amount (however designated)
24 that purports to reimburse the serviceman for service
25 occupation tax liability measured by receipts or selling
26 prices that are subject to tax under this Article, collects
27 more from the purchaser than the serviceman's service
28 occupation tax liability in the transaction, the purchaser
29 shall have a legal right to claim a refund of that amount
30 from the serviceman. If, however, that amount is not refunded
31 to the purchaser by a serviceman for any reason, the supplier
32 or serviceman is liable to pay that amount to the Department.
33 This paragraph does not apply to an amount collected by the
-991- LRB9000671KDdvA
1 supplier as service occupation tax, nor to an amount
2 collected by the serviceman as reimbursement for the
3 serviceman's service occupation tax liability on receipts or
4 cost prices that are subject to tax under this Article, as
5 long as the collection is made in compliance with the tax
6 collection brackets prescribed by the Department in its rules
7 and regulations.
8 Section 30-10. Tangible personal property used or
9 consumed in pollution control facilities. For purposes of
10 the taxes imposed by this Code, subject to the provisions of
11 Section 35-55, or subject to the provisions of Section 5.5 of
12 the Illinois Enterprise Zone Act, all tangible personal
13 property to be used or consumed in the operation of pollution
14 control facilities, as defined in Section 5-75, within an
15 enterprise zone established pursuant to the Illinois
16 Enterprise Zone Act shall be exempt.
17 Section 30-20. Designated tangible personal property;
18 enterprise zone; high impact business. Subject to the
19 provisions of Section 35-55, all tangible personal property
20 to be used or consumed within an enterprise zone established
21 pursuant to the Illinois Enterprise Zone Act or subject to
22 the provisions of Section 5.5 of the Illinois Enterprise Zone
23 Act, all tangible personal property to be used or consumed by
24 any high impact business, in the process of the manufacturing
25 or assembly of tangible personal property for wholesale or
26 retail sale or lease or in the process of graphic arts
27 production if used or consumed at a facility which is a
28 Department of Commerce and Community Affairs certified
29 business and located in a county of more than 4,000 persons
30 and less than 45,000 persons is exempt from the taxes imposed
31 by this Code. This exemption includes repair and replacement
32 parts for machinery and equipment used primarily in the
-992- LRB9000671KDdvA
1 process of manufacturing or assembling tangible personal
2 property or in the process of graphic arts production if used
3 or consumed at a facility which is a Department of Commerce
4 and Community Affairs certified business and located in a
5 county of more than 4,000 persons and less than 45,000
6 persons for wholesale or retail sale, or lease, and
7 equipment, manufacturing or graphic arts fuels, material and
8 supplies for the maintenance, repair or operation of such
9 manufacturing or assembling or graphic arts machinery or
10 equipment.
11 Section 30-25. Exemption - Machinery or Equipment used
12 in the operation of high impact service facilities. Subject
13 to the provisions of Section 35-85 of this Code, machinery or
14 equipment used in the operation of a high impact service
15 facility, as defined in Section 35-85 of this Code, located
16 within an enterprise zone established pursuant to the
17 Illinois Enterprise Zone Act shall be exempt from the taxes
18 imposed by this Code. Machinery and equipment, new and
19 replacement, shall include, but not be limited to: (i) motor
20 driven heavy equipment not considered rolling stock which is
21 used for the purpose of transporting parcels, machinery, or
22 equipment, or trailers used for the shipment of parcels, and
23 equipment used to maintain and provide in-house services,
24 within the confines of the facility, and (ii) automated
25 machinery and equipment used for the purposes of transporting
26 parcels within the facility, along with all components,
27 parts, pieces, and computer software or hardware contained in
28 the electronic control systems related thereto. The
29 Department of Revenue shall promulgate such rules and
30 regulations as necessary to further define machinery and
31 equipment eligible for exemption in a high impact service
32 facility.
-993- LRB9000671KDdvA
1 Section 30-30. High impact; building materials.
2 Beginning January 1, 1995, each retailer who makes a sale of
3 building materials that will be incorporated into a high
4 impact business location as designated by the Department of
5 Commerce and Community Affairs under Section 5.5 of the
6 Illinois Enterprise Zone Act may deduct receipts from such
7 sales when calculating only the 6.25% State rate of taxes
8 imposed by this Code. Beginning June 30, 1995, a retailer
9 may also deduct receipts from such sales when calculating any
10 applicable local taxes. However, until June 30, 1995, a
11 retailer may file claims for credit or refund to recover the
12 amount of any applicable local tax paid on such sales. No
13 retailer who is eligible for the deduction or credit under
14 Section 35-90 of this Code for making a sale of building
15 materials to be incorporated into real estate in an
16 enterprise zone by rehabilitation, remodeling or new
17 construction shall be eligible for the deduction or credit
18 authorized under this Section.
19 Section 30-35. Machinery and equipment used in aircraft
20 maintenance facility. Subject to the provisions of Section
21 35-80 of this Code, machinery and equipment used in the
22 operation of an aircraft maintenance facility as defined in
23 Section 35-80, located within an enterprise zone shall be
24 exempt from the taxes imposed by this Code. The machinery
25 and equipment exempted by this Section is limited to
26 machinery and equipment used primarily to maintain, rebuild
27 or repair aircraft used as rolling stock moving in interstate
28 commerce for hire by the operator of the facility. The
29 Department of Revenue shall promulgate any rules and
30 regulations necessary to further define machinery and
31 equipment eligible for exemption in an aircraft maintenance
32 facility.
-994- LRB9000671KDdvA
1 Section 30-40. Tangible personal property used or
2 consumed in aircraft maintenance facility. Subject to the
3 provisions of Section 35-80, all tangible personal property
4 to be used or consumed, within an enterprise zone established
5 pursuant to the Illinois Enterprise Zone Act, by any aircraft
6 maintenance facility, directly in the process of maintaining,
7 rebuilding or repairing aircraft is exempt from the taxes
8 imposed by this Code. The exemption includes repair and
9 replacement parts for machinery and equipment used primarily
10 in the process of maintaining, rebuilding or repairing
11 aircraft, and also includes equipment, fuels, material and
12 supplies for the maintenance, repair or operation of such
13 machinery or equipment.
14 Section 30-60. Farm chemicals. For purposes of the
15 retailers' occupation tax and the use tax, farm chemicals are
16 exempt.
17 Section 30-105. Motor vehicle used for renting. For
18 purposes of the retailers' occupation tax and the use tax, a
19 motor vehicle of the first division, a motor vehicle of the
20 second division that is a self-contained motor vehicle
21 designed or permanently converted to provide living quarters
22 for recreational, camping, or travel use, with direct walk
23 through access to the living quarters from the driver's seat,
24 or a motor vehicle of the second division that is of the van
25 configuration designed for the transportation of not less
26 than 7 nor more than 16 passengers, as defined in Section
27 1-146 of the Illinois Vehicle Code, that is used for
28 automobile renting, as defined in the Automobile Renting
29 Occupation and Use Tax Act is exempt.
30 Section 30-110. Passenger car subject to replacement
31 vehicle tax. For purposes of the retailers' occupation tax
-995- LRB9000671KDdvA
1 and the use tax, proceeds of that portion of the selling
2 price of a passenger car the sale of which is subject to the
3 Replacement Vehicle Tax are exempt.
4 Section 30-115. Motor vehicle sold to a non-resident.
5 For purposes of the retailers' occupation tax and the use
6 tax, a motor vehicle sold in this State to a nonresident even
7 though the motor vehicle is delivered to the nonresident in
8 this State, if the motor vehicle is not to be titled in this
9 State, and if a driveaway decal permit is issued to the motor
10 vehicle as provided in Section 3-603 of the Illinois Vehicle
11 Code or if the nonresident purchaser has vehicle registration
12 plates to transfer to the motor vehicle upon returning to his
13 or her home state is exempt. The issuance of the driveaway
14 decal permit or having the out-of-state registration plates
15 to be transferred is prima facie evidence that the motor
16 vehicle will not be titled in this State.
17 Section 30-120. Petroleum products. For purposes of the
18 retailers' occupation tax, petroleum products sold to a
19 purchaser if the seller is prohibited by federal law from
20 charging tax to the purchaser are exempt.
21 Section 30-130. Fuel consumed by ships. For purposes of
22 the retailers' occupation tax, fuel consumed or used in the
23 operation of ships, barges, or vessels that are used
24 primarily in or for the transportation of property or the
25 conveyance of persons for hire on rivers bordering on this
26 State if the fuel is delivered by the seller to the
27 purchaser's barge, ship, or vessel while it is afloat upon
28 that bordering river is exempt.
29 Section 30-210. Florist.
30 (a) For purposes of the retailers' occupation tax, a
-996- LRB9000671KDdvA
1 transaction in which the purchase order is received by a
2 florist who is located outside Illinois, but who has a
3 florist located in Illinois deliver the property to the
4 purchaser or the purchaser's donee in Illinois is exempt.
5 (b) For purposes of the use tax, personal property
6 delivered to a purchaser or purchaser's donee inside Illinois
7 when the purchase order for that personal property was
8 received by a florist located outside Illinois who has a
9 florist located inside Illinois deliver the personal property
10 is exempt.
11 Section 30-215. Interstate commerce exemption. No tax
12 is imposed by Article 10 or Article 20 upon the privilege of
13 engaging in a business in interstate commerce or otherwise,
14 when the business may not, under the Constitution and
15 statutes of the United States, be made the subject of
16 taxation by this State.
17 Section 35-5. Certificate of registration.
18 (a) All of the provisions of Section 35-5 and Sections
19 35-25 through 35-45 of this Code concerning registration
20 shall apply to the retailers' occupation tax, the use tax,
21 the service occupation tax, and the service use tax unless
22 otherwise stated. To the extent that any provision
23 specifically applying to the use tax, the service occupation
24 tax, or the service use tax is inconsistent with a general
25 provision applying to all of the taxes, the specific
26 provision shall control.
27 (b) It is unlawful for any person to engage in the
28 business of selling tangible personal property at retail in
29 this State without a certificate of registration from the
30 Department. Application for a certificate of registration
31 shall be made to the Department upon forms furnished by it.
32 Each such application shall be signed and verified and shall
-997- LRB9000671KDdvA
1 state: (1) the name and social security number of the
2 applicant; (2) the address of his principal place of
3 business; (3) the address of the principal place of business
4 from which he engages in the business of selling tangible
5 personal property at retail in this State and the addresses
6 of all other places of business, if any (enumerating such
7 addresses, if any, in a separate list attached to and made a
8 part of the application), from which he engages in the
9 business of selling tangible personal property at retail in
10 this State; (4) the name and address of the person or persons
11 who will be responsible for filing returns and payment of
12 taxes due under Article 10 of this Code; (5) in the case of a
13 corporation, the name, title, and social security number of
14 each corporate officer; (6) in the case of a limited
15 liability company, the name, social security number, and FEIN
16 number of each manager and member; and (7) such other
17 information as the Department may reasonably require. The
18 application shall contain an acceptance of responsibility
19 signed by the person or persons who will be responsible for
20 filing returns and payment of the taxes due under Article 10.
21 If the applicant will sell tangible personal property at
22 retail through vending machines, his application to register
23 shall indicate the number of vending machines to be so
24 operated; and thereafter, he shall notify the Department by
25 January 31 of the number of vending machines which such
26 person was using in his business of selling tangible personal
27 property at retail on the preceding December 31.
28 The Department may deny a certificate of registration to
29 any applicant if the owner, any partner, any manager or
30 member of a limited liability company, or a corporate officer
31 of the applicant, is or has been the owner, a partner, a
32 manager or member of a limited liability company, or a
33 corporate officer, of another retailer that is in default for
34 moneys due under this Code.
-998- LRB9000671KDdvA
1 Section 35-15. Certificate of registration; service
2 occupation tax. A supplier maintaining a place of business
3 in this State, if required to register for purposes of the
4 retailers' occupation tax, the use tax, or the service use
5 tax, need not obtain an additional certificate of
6 registration for purposes of the service occupation tax, but
7 shall be deemed to be sufficiently registered by virtue of
8 his being registered for purposes of the retailers'
9 occupation tax, the use tax, or the service use tax. Every
10 supplier maintaining a place of business in this State, if
11 not required to register for purposes of the retailers'
12 occupation tax, the use tax, or the service use tax, shall
13 apply to the Department (upon a form prescribed and furnished
14 by the Department) for a certificate of registration for
15 purposes of the service occupation tax. Every serviceman
16 maintaining a place of business in this State, if not
17 required to register for purposes of the retailers'
18 occupation tax, the use tax, or the service use tax, and
19 desiring to or required to pay the tax imposed by Article 20
20 directly to the Department, shall apply to the Department
21 (upon a form prescribed and furnished by the Department) for
22 a certificate of registration for purposes of the service
23 occupation tax.
24 Section 35-25. Bonds.
25 (a) Every applicant for a certificate of registration
26 shall, at the time of filing such application, furnish a bond
27 from a surety company authorized to do business in the State
28 of Illinois, or an irrevocable bank letter of credit or a
29 bond signed by 2 personal sureties who have filed, with the
30 Department, sworn statements disclosing net assets equal to
31 at least 3 times the amount of the bond to be required of
32 such applicant, or a bond secured by an assignment of a bank
33 account or certificate of deposit, stocks or bonds,
-999- LRB9000671KDdvA
1 conditioned upon the applicant paying to the State of
2 Illinois all moneys becoming due under this Code and under
3 any other State tax law or municipal or county tax ordinance
4 or resolution under which the certificate of registration
5 that is issued to the applicant under Sections 35-5 through
6 35-20 will permit the applicant to engage in business without
7 registering separately under such other law, ordinance or
8 resolution. The Department shall fix the amount of such
9 security in each case, taking into consideration the amount
10 of money expected to become due from the applicant under this
11 Code and under any other State tax law or municipal or county
12 tax ordinance or resolution under which the certificate of
13 registration that is issued to the applicant under Sections
14 35-5 through 35-20 will permit the applicant to engage in
15 business without registering separately under such other law,
16 ordinance or resolution. The amount of security required by
17 the Department shall be such as, in its opinion, will protect
18 the State of Illinois against failure to pay the amount which
19 may become due from the applicant under this Code and under
20 any other State tax law or municipal or county tax ordinance
21 or resolution under which the certificate of registration
22 that is issued to the applicant under Sections 35-5 through
23 35-20 will permit the applicant to engage in business without
24 registering separately under such other law, ordinance or
25 resolution, but the amount of the security required by the
26 Department shall not exceed three times the amount of the
27 applicant's average monthly tax liability, or $50,000.00,
28 whichever amount is lower.
29 (b) With respect to security other than bonds (upon which
30 the Department may sue in the event of a forfeiture), if the
31 taxpayer fails to pay, when due, any amount whose payment
32 such security guarantees, the Department shall, after such
33 liability is admitted by the taxpayer or established by the
34 Department through the issuance of a final assessment that
-1000- LRB9000671KDdvA
1 has become final under the law, convert the security which
2 that taxpayer has furnished into money for the State, after
3 first giving the taxpayer at least 10 days' written notice,
4 by registered or certified mail, to pay the liability or
5 forfeit such security to the Department. If the security
6 consists of stocks or bonds or other securities which are
7 listed on a public exchange, the Department shall sell such
8 securities through such public exchange. If the security
9 consists of an irrevocable bank letter of credit, the
10 Department shall convert the security in the manner provided
11 for in the Uniform Commercial Code. If the security consists
12 of a bank certificate of deposit, the Department shall
13 convert the security into money by demanding and collecting
14 the amount of such bank certificate of deposit from the bank
15 which issued such certificate. If the security consists of a
16 type of stocks or other securities which are not listed on a
17 public exchange, the Department shall sell such security to
18 the highest and best bidder after giving at least 10 days'
19 notice of the date, time and place of the intended sale by
20 publication in the "State Official Newspaper". If the
21 Department realizes more than the amount of such liability
22 from the security, plus the expenses incurred by the
23 Department in converting the security into money, the
24 Department shall pay such excess to the taxpayer who
25 furnished such security, and the balance shall be paid into
26 the State Treasury.
27 (c) No certificate of registration under this Code shall
28 be issued by the Department until the applicant provides the
29 Department with satisfactory security as herein provided for.
30 (d) The Department shall discharge any surety and shall
31 release and return any security deposited, assigned, pledged
32 or otherwise provided to it by a taxpayer under this Section
33 within 30 days after:
34 (1) such taxpayer becomes a Prior Continuous
-1001- LRB9000671KDdvA
1 Compliance taxpayer as defined in Section 35-35; or
2 (2) such taxpayer has ceased to collect receipts on
3 which he is required to remit tax to the Department, has
4 filed a final tax return, and has paid to the Department
5 an amount sufficient to discharge his remaining tax
6 liability, as determined by the Department, under this
7 Code and under every other State tax law or municipal or
8 county tax ordinance or resolution under which the
9 certificate of registration issued under Sections 35-5
10 through 35-20 permits the registrant to engage in
11 business without registering separately under such other
12 law, ordinance or resolution. The Department shall make
13 a final determination of the taxpayer's outstanding tax
14 liability as expeditiously as possible after his final
15 tax return has been filed; if the Department cannot make
16 such final determination within 45 days after receiving
17 the final tax return, within such period it shall so
18 notify the taxpayer, stating its reasons therefor.
19 Section 35-35. Prior continuous compliance taxpayer.
20 (a) Any person who is registered under Section 35-5 as of
21 March 8, 1963, and who, during the 3-year period immediately
22 prior to March 8, 1963, or during a continuous 3-year period
23 part of which passed immediately before and the remainder of
24 which passes immediately after March 8, 1963, has been so
25 registered continuously and who is determined by the
26 Department not to have been either delinquent or deficient in
27 the payment of tax liability during that period under this
28 Code or under any other State tax law or municipal or county
29 tax ordinance or resolution under which the certificate of
30 registration that is issued to the registrant under this Code
31 will permit the registrant to engage in business without
32 registering separately under such other law, ordinance or
33 resolution, shall be considered to be a Prior Continuous
-1002- LRB9000671KDdvA
1 Compliance taxpayer. Also any taxpayer who has, as verified
2 by the Department, faithfully and continuously complied with
3 the condition of his bond or other security under the
4 provisions of this Code for a period of 3 consecutive years
5 shall be considered to be a Prior Continuous Compliance
6 taxpayer.
7 (b) Every Prior Continuous Compliance taxpayer shall be
8 exempt from all requirements under this Code concerning the
9 furnishing of security as a condition precedent to his being
10 authorized to engage in the business of selling tangible
11 personal property at retail in this State. This exemption
12 shall continue for each such taxpayer until such time as he
13 may be determined by the Department to be delinquent in the
14 filing of any returns, or is determined by the Department
15 (either through the Department's issuance of a final
16 assessment which has become final under the Code, or by the
17 taxpayer's filing of a return which admits tax that is not
18 paid to be due) to be delinquent or deficient in the paying
19 of any tax under this Code or under any other State tax law
20 or municipal or county tax ordinance or resolution under
21 which the certificate of registration that is issued to the
22 registrant under Sections 35-5 through 35-20 will permit the
23 registrant to engage in business without registering
24 separately under such other law, ordinance or resolution, at
25 which time that taxpayer shall become subject to all the
26 financial responsibility requirements of this Code and, as a
27 condition of being allowed to continue to engage in the
28 business of selling tangible personal property at retail,
29 shall be required to post bond or other acceptable security
30 with the Department covering liability which such taxpayer
31 may thereafter incur. Any taxpayer who fails to pay an
32 admitted or established liability under this Code may also be
33 required to post bond or other acceptable security with this
34 Department guaranteeing the payment of such admitted or
-1003- LRB9000671KDdvA
1 established liability.
2 Section 35-40. Registrants in default. No certificate of
3 registration shall be issued to any person who is in default
4 to the State of Illinois for moneys due under this Code or
5 under any other State tax law or municipal or county tax
6 ordinance or resolution under which the certificate of
7 registration that is issued to the applicant under this Code
8 will permit the applicant to engage in business without
9 registering separately under such other law, ordinance or
10 resolution.
11 Section 35-45. Hearings. Any person aggrieved by any
12 decision of the Department under Sections 35-5 through 35-40
13 may, within 20 days after notice of such decision, protest
14 and request a hearing, whereupon the Department shall give
15 notice to such person of the time and place fixed for such
16 hearing and shall hold a hearing in conformity with the
17 provisions of this Code and then issue its final
18 administrative decision in the matter to such person. In the
19 absence of such a protest within 20 days, the Department's
20 decision shall become final without any further determination
21 being made or notice given.
22 Section 35-50. Resale number. If the purchaser is not
23 registered with the Department as a taxpayer, but claims to
24 be a reseller of the tangible personal property in such a way
25 that such resales are not taxable under this Code or under
26 some other tax law which the Department may administer, such
27 purchaser (except in the case of an out-of-State purchaser
28 who will always resell and deliver the property to his
29 customers outside Illinois) shall apply to the Department for
30 a resale number. Such applicant shall state facts which will
31 show the Department why such applicant is not liable for tax
-1004- LRB9000671KDdvA
1 under this Code or under some other tax law which the
2 Department may administer on any of his resales and shall
3 furnish such additional information as the Department may
4 reasonably require.
5 Upon approval of the application, the Department shall
6 assign a resale number to the applicant and shall certify
7 such number to him. The Department may cancel any such number
8 which is obtained through misrepresentation, or which is used
9 to make a purchase tax-free when the purchase in fact is not
10 a purchase for resale, or which no longer applies because of
11 the purchaser's having discontinued the making of tax exempt
12 resales of the property.
13 The Department may restrict the use of the number to one
14 year at a time or to some other definite period if the
15 Department finds it impracticable or otherwise inadvisable to
16 issue such numbers for indefinite periods.
17 Except as provided hereinabove in this Section, a sale
18 shall be made tax-free on the ground of being a sale for
19 resale if the purchaser has an active registration number or
20 resale number from the Department and furnishes that number
21 to the seller in connection with certifying to the seller
22 that any sale to such purchaser is nontaxable because of
23 being a sale for resale.
24 Failure to present an active registration number or
25 resale number and a certification to the seller that a sale
26 is for resale creates a presumption that a sale is not for
27 resale. This presumption may be rebutted by other evidence
28 that all of the seller's sales are sale for resale, or that a
29 particular sale is a sale for resale.
30 Section 35-55. High impact business. Except for high
31 impact businesses, the exemption stated in Sections 30-10 and
32 30-20 shall only apply to business enterprises which:
33 (1) either (i) make investments which cause the
-1005- LRB9000671KDdvA
1 creation of a minimum of 200 full-time equivalent jobs in
2 Illinois or (ii) make investments which cause the
3 retention of a minimum of 2000 full-time jobs in Illinois
4 or (iii) make investments of a minimum of $40,000,000 and
5 retain at least 90% of the jobs in place on the date on
6 which the exemption is granted and for the duration of
7 the exemption; and
8 (2) are located in an enterprise zone established
9 pursuant to the Illinois Enterprise Zone Act; and
10 (3) are certified by the Department of Commerce and
11 Community Affairs as complying with the requirements
12 specified in clauses (1), (2) and (3).
13 Any business enterprise seeking to avail itself of the
14 exemptions stated in Sections 30-10 or 30-20, or both, shall
15 make application to the Department of Commerce and Community
16 Affairs in such form and providing such information as may be
17 prescribed by the Department of Commerce and Community
18 Affairs. However, no business enterprise shall be required,
19 as a condition for certification under clause (3) of this
20 Section, to attest that its decision to invest under clause
21 (1) of this Section and to locate under clause (2) of this
22 Section is predicated upon the availability of the exemptions
23 authorized by Sections 30-10 or 30-20.
24 The Department of Commerce and Community Affairs shall
25 determine whether the business enterprise meets the criteria
26 prescribed in this Section. If the Department of Commerce
27 and Community Affairs determines that such business
28 enterprise meets the criteria, it shall issue a certificate
29 of eligibility for exemption to the business enterprise in
30 such form as is prescribed by the Department of Revenue. The
31 Department of Commerce and Community Affairs shall act upon
32 such certification requests within 60 days after receipt of
33 the application, and shall file with the Department of
34 Revenue a copy of each certificate of eligibility for
-1006- LRB9000671KDdvA
1 exemption.
2 The Department of Commerce and Community Affairs shall
3 have the power to promulgate rules and regulations to carry
4 out the provisions of this Section including the power to
5 define the amounts and types of eligible investments not
6 specified in this Section which business enterprises must
7 make in order to receive the exemptions stated in Sections
8 30-10 and 30-20 of this Code; and to require that any
9 business enterprise that is granted a tax exemption repay the
10 exempted tax if the business enterprise fails to comply with
11 the terms and conditions of the certification.
12 Such certificate of eligibility for exemption shall be
13 presented by the business enterprise to its supplier when
14 making the initial purchase of tangible personal property for
15 which an exemption is granted by Section 30-10 or Section
16 30-20, or both, together with a certification by the business
17 enterprise that such tangible personal property is exempt
18 from taxation under Section 30-10 or Section 30-20 and by
19 indicating the exempt status of each subsequent purchase on
20 the face of the purchase order.
21 The Department of Commerce and Community Affairs shall
22 determine the period during which such exemption from the
23 taxes imposed under this Code is in effect which shall not
24 exceed 20 years.
25 Section 35-60. Exemption identification number. On or
26 before December 31, 1986, except as hereinafter provided,
27 each entity otherwise eligible under Section 30-170 shall
28 make application to the Department for an exemption
29 identification number. In the case of a corporation, society,
30 association, foundation, or institution organized and
31 operated exclusively for charitable purposes and that has
32 more than 50 subsidiary organizations in Illinois, the
33 Department, in its sole discretion, may issue one exemption
-1007- LRB9000671KDdvA
1 identification number to be used by the parent organization
2 and each subsidiary organization.
3 Each exemption identification number or renewal number
4 shall be valid for 5 years after the first day of the month
5 following the month of issuance. Not less than 3 months
6 before the expiration date, an application for renewal shall
7 be filed.
8 Each application for an exemption identification number
9 or a renewal number shall contain information and be
10 accompanied by documentation as shall be requested by the
11 Department.
12 Section 35-65. Exemption identification number; list.
13 Upon request made on or after July 1, 1987, the Department
14 shall furnish to any county or municipality a list containing
15 the name of each corporation, society, association,
16 foundation or institution organized and operated exclusively
17 for charitable, religious or educational purposes, and each
18 not-for-profit corporation, society, association, foundation,
19 institution or organization which has no compensated officers
20 or employees and which is organized and operated primarily
21 for the recreation of persons 55 years of age or older, which
22 had a valid exemption identification number on the first day
23 of January or July, as the case may be, proceeding the date
24 on which such request is received and which is located within
25 the corporate limits of such municipality or the
26 unincorporated territory of such county, except that the list
27 need not include subsidiary organizations using an exemption
28 identification number issued to its parent organization as
29 provided by Section 30-20.
30 Section 35-75. Exemption from bonding; Department of
31 Revenue. The Department is not required to furnish any bond
32 nor to make a deposit for or pay any costs or fees of any
-1008- LRB9000671KDdvA
1 court or officer thereof in any judicial proceedings under
2 this Code. Whenever a certified copy of a judgment or order
3 for attachment, issued from any court for the enforcement or
4 collection of any liability created by this Code, is levied
5 by any sheriff or coroner upon any personal property, and
6 such property is claimed by any person other than the
7 judgment debtor or the defendant in the attachment, or is
8 claimed by the judgment debtor or defendant in the attachment
9 as exempt from enforcement of a judgment thereon by virtue of
10 the exemption laws of this State, then the person making such
11 claim shall give notice in writing of his or her claim and of
12 his or her intention to prosecute the claim, to the sheriff
13 or coroner within 10 days after the making of the levy. On
14 receiving such notice, the sheriff or coroner shall proceed
15 in accordance with Part 2 of Article XII of the Code of Civil
16 Procedure, as amended. The giving of such notice within the
17 10 day period is a condition precedent to any judicial action
18 against the sheriff or coroner for wrongfully levying,
19 seizing or selling the property and any such person who fails
20 to give such notice within that time is barred from bringing
21 any judicial action against such sheriff or coroner for
22 injury or damages to or conversion of the property.
23 Section 35-80. Aircraft maintenance facility. Aircraft
24 maintenance facility means a facility operated by an
25 interstate carrier for hire that is used primarily for the
26 maintenance, rebuilding or repair of aircraft, aircraft parts
27 and auxiliary equipment owned or leased by that carrier and
28 used by that carrier as rolling stock moving in interstate
29 commerce, and which: (1) will make an investment by the
30 interstate carrier for hire of $400,000,000 or more in an
31 enterprise zone; (2) will cause the creation of at least
32 5,000 full-time jobs in that enterprise zone; (3) is located
33 in a county with population not less than 150,000 and not
-1009- LRB9000671KDdvA
1 more than 200,000 and that contains 3 enterprise zones as of
2 December 31, 1990; (4) enters into a legally binding
3 agreement with the Department of Commerce and Community
4 Affairs to comply with clauses (1) and (2) of this paragraph
5 within a time period specified in the rules and regulations
6 promulgated pursuant to this Section; and (5) is certified by
7 the Department of Commerce and Community Affairs to be in
8 compliance with clauses (1), (2), (3) and (4) of this
9 Section. Any aircraft maintenance facility applying for the
10 exemption stated in this Section shall make application to
11 the Department of Commerce and Community Affairs in such form
12 and providing such information as may be prescribed by the
13 Department of Commerce and Community Affairs.
14 The Department of Commerce and Community Affairs shall
15 determine whether the facility meets the criteria prescribed
16 in this Section. If the Department of Commerce and Community
17 Affairs determines that the facility meets the criteria, it
18 shall issue a certificate of eligibility for exemption in the
19 form prescribed by the Department of Revenue to the business
20 enterprise operating the facility. The Department of
21 Commerce and Community Affairs shall act upon certification
22 request within 60 days after receipt of application, and
23 shall file with the Department of Revenue a copy of each
24 certificate of eligibility for exemption.
25 The Department of Commerce and Community Affairs shall
26 promulgate rules and regulations to carry out the provisions
27 of this Section, and to require that any business enterprise
28 that is granted a tax exemption pay the exempted tax to the
29 Department of Revenue if the business enterprise fails to
30 comply with the terms and conditions of the certification,
31 and pay all penalties and interest on that exempted tax as
32 determined by the Department of Revenue.
33 The certificate of eligibility for exemption shall be
34 presented by the business enterprise to its supplier when
-1010- LRB9000671KDdvA
1 making the initial purchase of machinery and equipment for
2 which an exemption is granted by Section 30-35 or Section
3 30-40 of this Code, or both, together with a certification by
4 the business enterprise that the machinery and equipment is
5 exempt from taxation under Section 30-35 or 30-40 of this
6 Code. The exempt status, if any, of each subsequent purchase
7 shall be indicated on the face of the purchase order.
8 Section 35-85. High impact service facility. High
9 impact service facility means a facility used primarily for
10 the sorting, handling and redistribution of single item
11 non-fungible parcels received from agents or employees of the
12 handler or shipper for processing at a common location and
13 redistribution to other employees or agents for delivery to
14 an ultimate destination on an item-by-item basis, and which:
15 (1) will make an investment by a business enterprise of
16 $150,000,000 dollars or more; (2) will cause the creation of
17 at least 1,000 jobs in an enterprise zone established
18 pursuant to the Illinois Enterprise Zone Act; and (3) is
19 certified by the Department of Commerce and Community Affairs
20 as contractually obligated to meet the requirements specified
21 in divisions (1) and (2) of this paragraph within the time
22 period as specified by the certification. Any business
23 enterprise applying for the exemption stated in this Section
24 shall make application to the Department of Commerce and
25 Community Affairs in such form and providing such information
26 as may be prescribed by the Department of Commerce and
27 Community Affairs.
28 The Department of Commerce and Community Affairs shall
29 determine whether the facility meets the criteria prescribed
30 in this Section. If the Department of Commerce and Community
31 Affairs determines that such business enterprise meets the
32 criteria, it shall issue a certificate of eligibility for
33 exemption to the business enterprise in such form as is
-1011- LRB9000671KDdvA
1 prescribed by the Department of Revenue. The Department of
2 Commerce and Community Affairs shall act upon such
3 certification requests within 60 days after receipt of the
4 application, and shall file with the Department of Revenue a
5 copy of each certificate of eligibility for exemption.
6 The Department of Commerce and Community Affairs shall
7 have the power to promulgate rules and regulations to carry
8 out the provisions of this Section and to require that any
9 business enterprise that is granted a tax exemption repay the
10 exempted tax if the business enterprise fails to comply with
11 the terms and conditions of the certification.
12 The certificate of eligibility for exemption shall be
13 presented by the business enterprise to its supplier when
14 making the initial purchase of machinery and equipment for
15 which an exemption is granted by Section 30-25 of this Code,
16 together with a certification by the business enterprise that
17 such machinery and equipment is exempt from taxation under
18 Section 30-25 of this Code and by indicating the exempt
19 status of each subsequent purchase on the face of the
20 purchase order.
21 The Department of Commerce and Community Affairs shall
22 determine the period during which such exemption from the
23 taxes imposed under this Code will remain in effect.
24 Section 35-90. Enterprise zones; building materials.
25 Each retailer whose place of business is within a county or
26 municipality which has established an enterprise zone
27 pursuant to the Illinois Enterprise Zone Act and who makes a
28 sale of building materials to be incorporated into real
29 estate in such enterprise zone by remodeling, rehabilitation
30 or new construction, may deduct receipts from such sales when
31 calculating the taxes imposed by this Code. The deduction
32 allowed by this Section for the sale of building materials
33 may be limited, to the extent authorized by ordinance,
-1012- LRB9000671KDdvA
1 adopted after February 18, 1992, by the municipality or
2 county that created the enterprise zone. The corporate
3 authorities of any municipality or county that adopts an
4 ordinance or resolution imposing or changing any limitation
5 on the enterprise zone exemption for building materials shall
6 transmit to the Department of Revenue on or not later than 5
7 days after publication, as provided by law, a certified copy
8 of the ordinance or resolution imposing or changing those
9 limitations, whereupon the Department of Revenue shall
10 proceed to administer and enforce those limitations effective
11 the first day of the second calendar month next following
12 date of receipt by the Department of the certified ordinance
13 or resolution.
14 Section 40-5. Information confidential; exceptions. All
15 information received by the Department from returns filed
16 under this Code, or from any investigation conducted under
17 this Code, shall be confidential, except for official
18 purposes, and any person who divulges any such information in
19 any manner, except in accordance with a proper judicial order
20 or as otherwise provided by law, shall be guilty of a Class B
21 misdemeanor.
22 Nothing in this Code prevents the Director of Revenue
23 from publishing or making available to the public the names
24 and addresses of persons filing returns under this Code, or
25 reasonable statistics concerning the operation of the tax by
26 grouping the contents of returns so the information in any
27 individual return is not disclosed.
28 Nothing in this Code prevents the Director of Revenue
29 from divulging to the United States Government or the
30 government of any other state, or any village that does not
31 levy any real property taxes for village operations and that
32 receives more than 60% of its general corporate revenue from
33 taxes under Articles 10, 15, 20, and 25 of this Code, or any
-1013- LRB9000671KDdvA
1 officer or agency thereof, for exclusively official purposes,
2 information received by the Department in administering this
3 Code, provided that such other governmental agency agrees to
4 divulge requested tax information to the Department.
5 The Department's furnishing of information derived from a
6 taxpayer's return or from an investigation conducted under
7 this Code to the surety on a taxpayer's bond that has been
8 furnished to the Department under this Code, either to
9 provide notice to such surety of its potential liability
10 under the bond or, in order to support the Department's
11 demand for payment from such surety under the bond, is an
12 official purpose within the meaning of this Section.
13 The furnishing upon request of information obtained by
14 the Department from returns filed under this Code or
15 investigations conducted under this Code to the Illinois
16 Liquor Control Commission for official use is deemed to be an
17 official purpose within the meaning of this Section.
18 Notice to a surety of potential liability shall not be
19 given unless the taxpayer has first been notified, not less
20 than 10 days prior thereto, of the Department's intent to so
21 notify the surety.
22 The furnishing upon request of the Auditor General, or
23 his authorized agents, for official use, of returns filed and
24 information related thereto under this Code is deemed to be
25 an official purpose within the meaning of this Section.
26 Where an appeal or a protest has been filed on behalf of
27 a taxpayer, the furnishing upon request of the attorney for
28 the taxpayer of returns filed by the taxpayer and information
29 related thereto under this Code is deemed to be an official
30 purpose within the meaning of this Section.
31 The furnishing of financial information to a home rule
32 unit that has imposed a tax similar to that imposed by this
33 Code pursuant to its home rule powers, or to any village that
34 does not levy any real property taxes for village operations
-1014- LRB9000671KDdvA
1 and that receives more than 60% of its general corporate
2 revenue from taxes under Articles 10, 15, 20, and 25 of this
3 Code, upon request of the Chief Executive thereof, is an
4 official purpose within the meaning of this Section,
5 provided the home rule unit or village that does not levy any
6 real property taxes for village operations and that receives
7 more than 60% of its general corporate revenue from taxes
8 under Articles 10, 15, 20, and 25 of this Code agrees in
9 writing to the requirements of this Section.
10 For a village that does not levy any real property taxes
11 for village operations and that receives more than 60% of its
12 general corporate revenue from taxes under Articles 10, 15,
13 20, and 25 of this Code, the officers eligible to receive
14 information from the Department of Revenue under this Section
15 are the village manager and the chief financial officer of
16 the village.
17 Information so provided shall be subject to all
18 confidentiality provisions of this Section. The written
19 agreement shall provide for reciprocity, limitations on
20 access, disclosure, and procedures for requesting
21 information.
22 The Director may make available to any State agency,
23 including the Illinois Supreme Court, which licenses persons
24 to engage in any occupation, information that a person
25 licensed by such agency has failed to file returns under this
26 Code or pay the tax, penalty and interest shown therein, or
27 has failed to pay any final assessment of tax, penalty or
28 interest due under this Code. The Director may also make
29 available to the Secretary of State information that a
30 limited liability company, which has filed articles of
31 organization with the Secretary of State, or corporation
32 which has been issued a certificate of incorporation by the
33 Secretary of State has failed to file returns under this Code
34 or pay the tax, penalty and interest shown therein, or has
-1015- LRB9000671KDdvA
1 failed to pay any final assessment of tax, penalty or
2 interest due under this Code. An assessment is final when all
3 proceedings in court for review of such assessment have
4 terminated or the time for the taking thereof has expired
5 without such proceedings being instituted.
6 The Director shall make available for public inspection
7 in the Department's principal office and for publication, at
8 cost, administrative decisions issued on or after January 1,
9 1995. These decisions are to be made available in a manner so
10 that the following taxpayer information is not disclosed:
11 (1) The names, addresses, and identification
12 numbers of the taxpayer, related entities, and employees.
13 (2) At the sole discretion of the Director, trade
14 secrets or other confidential information identified as
15 such by the taxpayer, no later than 30 days after receipt
16 of an administrative decision, by such means as the
17 Department shall provide by rule.
18 The Director shall determine the appropriate extent of
19 the deletions allowed in paragraph (2). In the event the
20 taxpayer does not submit deletions, the Director shall make
21 only the deletions specified in paragraph (1).
22 The Director shall make available for public inspection
23 and publication an administrative decision within 180 days
24 after the issuance of the administrative decision. The term
25 "administrative decision" has the same meaning as defined in
26 Section 3-101 of Article III of the Code of Civil Procedure.
27 Costs collected under this Section shall be paid into the Tax
28 Compliance and Administration Fund.
29 Section 45-5. Applicability of Article. The provisions
30 of this Article shall apply to the retailers' occupation tax,
31 the use tax, the service occupation tax, and the service use
32 tax. To the extent that any provision specifically applying
33 to the use tax, the service occupation tax, or the service
-1016- LRB9000671KDdvA
1 use tax is inconsistent with a general provision applying to
2 all of the taxes, the specific provision shall control.
3 Section 45-10. Records to be kept. Every person engaged
4 in the business of selling tangible personal property at
5 retail in this State shall keep records and books of all
6 sales of tangible personal property, together with invoices,
7 bills of lading, sales records, copies of bills of sale,
8 inventories prepared as of December 31 of each year or
9 otherwise annually as has been the custom in the specific
10 trade and other pertinent papers and documents. Every person
11 who is engaged in the business of selling tangible personal
12 property at retail in this State and who, in connection with
13 such business, also engages in other activities (including,
14 but not limited to, engaging in a service occupation) shall
15 keep such additional records and books of all such activities
16 as will accurately reflect the character and scope of such
17 activities and the amount of receipts realized therefrom. The
18 Department may adopt rules that establish requirements,
19 including record forms and formats, for records required to
20 be kept and maintained by taxpayers. For purposes of this
21 Section, "records" means all data maintained by the taxpayer,
22 including data on paper, microfilm, microfiche or any type of
23 machine-sensible data compilation.
24 All books and records and other papers and documents
25 which are required by this Code to be kept shall be kept in
26 the English language and shall, at all times during business
27 hours of the day, be subject to inspection by the Department
28 or its duly authorized agents and employees.
29 To support deductions made on the tax return form, or
30 authorized under this Code, on account of receipts from
31 isolated or occasional sales of tangible personal property,
32 on account of receipts from sales of tangible personal
33 property for resale, on account of receipts from sales to
-1017- LRB9000671KDdvA
1 governmental bodies or other exempted types of purchasers, on
2 account of receipts from sales of tangible personal property
3 in interstate commerce, and on account of receipts from any
4 other kind of transaction that is not taxable under this
5 Code, entries in any books, records or other pertinent papers
6 or documents of the taxpayer in relation thereto shall be in
7 detail sufficient to show the name and address of the
8 taxpayer's customer in each such transaction, the character
9 of every such transaction, the date of every such
10 transaction, the amount of receipts realized from every such
11 transaction and such other information as may be necessary to
12 establish the non-taxable character of such transaction under
13 this Code.
14 Except in the case of a sale to a purchaser who will
15 always resell and deliver the property to his customers
16 outside Illinois, anyone claiming that he has made a
17 nontaxable sale for resale in some form as tangible personal
18 property shall also keep a record of the purchaser's
19 registration number or resale number with the Department.
20 It shall be presumed that all sales of tangible personal
21 property are subject to tax under this Code until the
22 contrary is established, and the burden of proving that a
23 transaction is not taxable hereunder shall be upon the person
24 who would be required to remit the tax to the Department if
25 such transaction is taxable. In the course of any audit or
26 investigation or hearing by the Department with reference to
27 a given taxpayer, if the Department finds that the taxpayer
28 lacks documentary evidence needed to support the taxpayer's
29 claim to exemption from tax hereunder, the Department is
30 authorized to notify the taxpayer in writing to produce such
31 evidence, and the taxpayer shall have 60 days subject to the
32 right in the Department to extend this period either on
33 request for good cause shown or on its own motion from the
34 date when such notice is sent to the taxpayer by certified or
-1018- LRB9000671KDdvA
1 registered mail (or delivered to the taxpayer if the notice
2 is served personally) in which to obtain and produce such
3 evidence for the Department's inspection, failing which the
4 matter shall be closed, and the transaction shall be
5 conclusively presumed to be taxable hereunder.
6 Books and records and other papers reflecting gross
7 receipts received during any period with respect to which the
8 Department is authorized to issue notices of tax liability as
9 provided by Sections 50-145 and 50-150 of this Code shall be
10 preserved until the expiration of such period unless the
11 Department, in writing, shall authorize their destruction or
12 disposal prior to such expiration.
13 Section 50-45. Signature on return for a corporation or
14 limited liability company.
15 (a) Where the seller is a corporation, the return filed
16 on behalf of such corporation shall be signed by the
17 president, vice-president, secretary or treasurer or by the
18 properly accredited agent of such corporation.
19 (b) Where the seller is a limited liability company, the
20 return filed on behalf of the limited liability company shall
21 be signed by a manager, member, or properly accredited agent
22 of the limited liability company.
23 Section 50-50. Statement of prepaid tax. Each return
24 shall be accompanied by the statement of prepaid tax issued
25 pursuant to Section 10-35 for which credit is claimed.
26 Section 50-55. Rounding.
27 (a) If a total amount of less than $1 is payable,
28 refundable or creditable, such amount shall be disregarded if
29 it is less than 50 cents and shall be increased to $1 if it
30 is 50 cents or more.
31 (b) Any amount which is required to be shown or reported
-1019- LRB9000671KDdvA
1 on any return or other document under this Code shall, if
2 such amount is not a whole-dollar amount, be increased to the
3 nearest whole-dollar amount in any case where the fractional
4 part of a dollar is 50 cents or more, and decreased to the
5 nearest whole-dollar amount where the fractional part of a
6 dollar is less than 50 cents.
7 Section 50-80. Separate return for certain registered
8 property. With respect to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, every retailer selling this
11 kind of tangible personal property shall file, with the
12 Department, upon a form to be prescribed and supplied by the
13 Department, a separate return for each such item of tangible
14 personal property which the retailer sells, except that
15 where, in the same transaction, a retailer of aircraft,
16 watercraft, motor vehicles or trailers transfers more than
17 one aircraft, watercraft, motor vehicle or trailer to another
18 aircraft, watercraft, motor vehicle retailer or trailer
19 retailer for the purpose of resale, that seller for resale
20 may report the transfer of all aircraft, watercraft, motor
21 vehicles or trailers involved in that transaction to the
22 Department on the same uniform invoice-transaction reporting
23 return form.
24 Section 50-85. Retailer selling only vehicles,
25 watercraft, aircraft, or trailers. Any retailer who sells
26 only motor vehicles, watercraft, aircraft, or trailers that
27 are required to be registered with an agency of this State,
28 so that all retailers' occupation tax liability is required
29 to be reported, and is reported, on such transaction
30 reporting returns and who is not otherwise required to file
31 monthly or quarterly returns, need not file monthly or
32 quarterly returns. However, those retailers shall be
-1020- LRB9000671KDdvA
1 required to file returns on an annual basis.
2 Section 50-90. Transaction reporting return.
3 (a) The transaction reporting return, in the case of
4 motor vehicles or trailers that are required to be registered
5 with an agency of this State, shall be the same document as
6 the Uniform Invoice referred to in Section 5-402 of the
7 Illinois Vehicle Code and must show the name and address of
8 the seller; the name and address of the purchaser; the amount
9 of the selling price including the amount allowed by the
10 retailer for traded-in property, if any; the amount allowed
11 by the retailer for the traded-in tangible personal property,
12 if any, to the extent to which Section 5-120 allows an
13 exemption for the value of traded-in property; the balance
14 payable after deducting such trade-in allowance from the
15 total selling price; the amount of tax due from the retailer
16 with respect to such transaction; the amount of tax collected
17 from the purchaser by the retailer on such transaction (or
18 satisfactory evidence that such tax is not due in that
19 particular instance, if that is claimed to be the fact); the
20 place and date of the sale; a sufficient identification of
21 the property sold; such other information as is required in
22 Section 5-402 of the Illinois Vehicle Code, and such other
23 information as the Department may reasonably require.
24 (b) The transaction reporting return in the case of
25 watercraft or aircraft must show the name and address of the
26 seller; the name and address of the purchaser; the amount of
27 the selling price including the amount allowed by the
28 retailer for traded-in property, if any; the amount allowed
29 by the retailer for the traded-in tangible personal property,
30 if any, to the extent to which Section 5-120 allows an
31 exemption for the value of traded-in property; the balance
32 payable after deducting such trade-in allowance from the
33 total selling price; the amount of tax due from the retailer
-1021- LRB9000671KDdvA
1 with respect to such transaction; the amount of tax collected
2 from the purchaser by the retailer on such transaction (or
3 satisfactory evidence that such tax is not due in that
4 particular instance, if that is claimed to be the fact); the
5 place and date of the sale, a sufficient identification of
6 the property sold, and such other information as the
7 Department may reasonably require.
8 (c) Such transaction reporting return shall be filed not
9 later than 20 days after the day of delivery of the item that
10 is being sold, but may be filed by the retailer at any time
11 sooner than that if he chooses to do so. The transaction
12 reporting return and tax remittance or proof of exemption
13 from the Illinois use tax may be transmitted to the
14 Department by way of the State agency with which or State
15 officer with whom the tangible personal property must be
16 titled or registered (if titling or registration is required)
17 if the Department and such agency or State officer determine
18 that this procedure will expedite the processing of
19 applications for title or registration.
20 (d) With each such transaction reporting return, the
21 retailer shall remit the proper amount of tax due (or shall
22 submit satisfactory evidence that the sale is not taxable if
23 that is the case), to the Department or its agents, whereupon
24 the Department shall issue, in the purchaser's name, a use
25 tax receipt (or a certificate of exemption if the Department
26 is satisfied that the particular sale is tax exempt) which
27 such purchaser may submit to the agency with which, or State
28 officer with whom, he must title or register the tangible
29 personal property that is involved (if titling or
30 registration is required) in support of such purchaser's
31 application for an Illinois certificate or other evidence of
32 title or registration to such tangible personal property.
33 (e) No retailer's failure or refusal to remit tax under
34 this Code precludes a user, who has paid the proper tax to
-1022- LRB9000671KDdvA
1 the retailer, from obtaining his certificate of title or
2 other evidence of title or registration (if titling or
3 registration is required) upon satisfying the Department that
4 such user has paid the proper tax (if tax is due) to the
5 retailer. The Department shall adopt appropriate rules to
6 carry out the mandate of this subsection.
7 (f) If the user who would otherwise pay tax to the
8 retailer wants the transaction reporting return filed and the
9 payment of the tax or proof of exemption made to the
10 Department before the retailer is willing to take these
11 actions and such user has not paid the tax to the retailer,
12 such user may certify to the fact of such delay by the
13 retailer and may (upon the Department being satisfied of the
14 truth of such certification) transmit the information
15 required by the transaction reporting return and the
16 remittance for tax or proof of exemption directly to the
17 Department and obtain his tax receipt or exemption
18 determination, in which event the transaction reporting
19 return and tax remittance (if a tax payment was required)
20 shall be credited by the Department to the proper retailer's
21 account with the Department, but without the 2.1% or 1.75%
22 discount provided for in Section 50-110 being allowed. When
23 the user pays the tax directly to the Department, he shall
24 pay the tax in the same amount and in the same form in which
25 it would be remitted if the tax had been remitted to the
26 Department by the retailer.
27 Section 50-115. Conditional sales contract. For
28 purposes of the use tax and the service occupation tax, where
29 such tangible personal property is sold under a conditional
30 sales contract, or under any other form of sale wherein the
31 payment of the principal sum, or a part thereof, is extended
32 beyond the close of the period for which the return is filed,
33 the retailer or serviceman, in collecting the tax (except,
-1023- LRB9000671KDdvA
1 for purposes of the use tax only, as to motor vehicles,
2 watercraft, aircraft, and trailers that are required to be
3 registered with an agency of this State), may collect for
4 each tax return period, only the tax applicable to that part
5 of the selling price actually received during such tax return
6 period.
7 Section 50-120. Quarter-monthly payments.
8 (a) If the taxpayer's average monthly tax liability to
9 the Department under this Code excluding any liability for
10 prepaid sales tax to be remitted in accordance with Section
11 10-30, was $10,000 or more during the preceding 4 complete
12 calendar quarters, he shall file a return with the Department
13 each month by the 20th day of the month next following the
14 month during which such tax liability is incurred and shall
15 make payments to the Department on or before the 7th, 15th,
16 22nd and last day of the month during which such liability is
17 incurred. If the month during which such tax liability is
18 incurred began prior to January 1, 1985, each payment shall
19 be in an amount equal to 1/4 of the taxpayer's actual
20 liability for the month or an amount set by the Department
21 not to exceed 1/4 of the average monthly liability of the
22 taxpayer to the Department for the preceding 4 complete
23 calendar quarters (excluding the month of highest liability
24 and the month of lowest liability in such 4 quarter period).
25 If the month during which such tax liability is incurred
26 begins on or after January 1, 1985 and prior to January 1,
27 1987, each payment shall be in an amount equal to 22.5% of
28 the taxpayer's actual liability for the month or 27.5% of the
29 taxpayer's liability for the same calendar month of the
30 preceding year. If the month during which such tax liability
31 is incurred begins on or after January 1, 1987 and prior to
32 January 1, 1988, each payment shall be in an amount equal to
33 22.5% of the taxpayer's actual liability for the month or
-1024- LRB9000671KDdvA
1 26.25% of the taxpayer's liability for the same calendar
2 month of the preceding year. If the month during which such
3 tax liability is incurred begins on or after January 1, 1988,
4 and prior to January 1, 1989, or begins on or after January
5 1, 1996, each payment shall be in an amount equal to 22.5% of
6 the taxpayer's actual liability for the month or 25% of the
7 taxpayer's liability for the same calendar month of the
8 preceding year. If the month during which such tax liability
9 is incurred begins on or after January 1, 1989, and prior to
10 January 1, 1996, each payment shall be in an amount equal to
11 22.5% of the taxpayer's actual liability for the month or 25%
12 of the taxpayer's liability for the same calendar month of
13 the preceding year or 100% of the taxpayer's actual liability
14 for the quarter monthly reporting period. The amount of such
15 quarter monthly payments shall be credited against the final
16 tax liability of the taxpayer's return for that month. Once
17 applicable, the requirement of the making of quarter monthly
18 payments to the Department by taxpayers having an average
19 monthly tax liability of $10,000 or more as determined in the
20 manner provided above shall continue until such taxpayer's
21 average monthly liability to the Department during the
22 preceding 4 complete calendar quarters (excluding the month
23 of highest liability and the month of lowest liability) is
24 less than $9,000, or until such taxpayer's average monthly
25 liability to the Department as computed for each calendar
26 quarter of the 4 preceding complete calendar quarter period
27 is less than $10,000. However, if a taxpayer can show the
28 Department that a substantial change in the taxpayer's
29 business has occurred which causes the taxpayer to anticipate
30 that his average monthly tax liability for the reasonably
31 foreseeable future will fall below $10,000, then such
32 taxpayer may petition the Department for a change in such
33 taxpayer's reporting status. The Department shall change
34 such taxpayer's reporting status unless it finds that such
-1025- LRB9000671KDdvA
1 change is seasonal in nature and not likely to be long term.
2 If any such quarter monthly payment is not paid at the time
3 or in the amount required by this Section, then the
4 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
5 by 2.1% or 1.75% of the difference between the minimum amount
6 due as a payment and the amount of such quarter monthly
7 payment actually and timely paid, and the taxpayer shall be
8 liable for penalties and interest on such difference, except
9 insofar as the taxpayer has previously made payments for that
10 month to the Department in excess of the minimum payments
11 previously due as provided in Sections 50-5 through 50-140.
12 The Department shall make reasonable rules and regulations to
13 govern the quarter monthly payment amount and quarter monthly
14 payment dates for taxpayers who file on other than a calendar
15 monthly basis.
16 (b) Without regard to whether a taxpayer is required to
17 make quarter monthly payments as specified above, any
18 taxpayer who is required by Section 10-30 to collect and
19 remit prepaid taxes and has collected prepaid taxes which
20 average in excess of $25,000 per month during the preceding 2
21 complete calendar quarters, shall file a return with the
22 Department as required by Section 10-40 and shall make
23 payments to the Department on or before the 7th, 15th, 22nd
24 and last day of the month during which such liability is
25 incurred. If the month during which such tax liability is
26 incurred began prior to the effective date of this amendatory
27 Act of 1985, each payment shall be in an amount not less than
28 22.5% of the taxpayer's actual liability under Section 10-30.
29 If the month during which such tax liability is incurred
30 begins on or after January 1, 1986, each payment shall be in
31 an amount equal to 22.5% of the taxpayer's actual liability
32 for the month or 27.5% of the taxpayer's liability for the
33 same calendar month of the preceding calendar year. If the
34 month during which such tax liability is incurred begins on
-1026- LRB9000671KDdvA
1 or after January 1, 1987, each payment shall be in an amount
2 equal to 22.5% of the taxpayer's actual liability for the
3 month or 26.25% of the taxpayer's liability for the same
4 calendar month of the preceding year. The amount of such
5 quarter monthly payments shall be credited against the final
6 tax liability of the taxpayer's return for that month filed
7 under Sections 50-5 through 50-140 or Section 10-40, as the
8 case may be. Once applicable, the requirement of the making
9 of quarter monthly payments to the Department pursuant to
10 this subsection shall continue until such taxpayer's average
11 monthly prepaid tax collections during the preceding 2
12 complete calendar quarters is $25,000 or less. If any such
13 quarter monthly payment is not paid at the time or in the
14 amount required, the taxpayer shall be liable for penalties
15 and interest on such difference, except insofar as the
16 taxpayer has previously made payments for that month in
17 excess of the minimum payments previously due.
18 Section 50-125. Credit memorandum.
19 (a) If any payment provided for in Sections 50-5 through
20 50-140 exceeds the taxpayer's liabilities under this Code, as
21 shown on an original monthly return, the Department shall, if
22 requested by the taxpayer, issue to the taxpayer a credit
23 memorandum no later than 30 days after the date of payment.
24 The credit evidenced by such credit memorandum may be
25 assigned by the taxpayer to a similar taxpayer under this
26 Code, in accordance with reasonable rules and regulations to
27 be prescribed by the Department. If no such request is made,
28 the taxpayer may credit such excess payment against tax
29 liability subsequently to be remitted to the Department under
30 this Code, in accordance with reasonable rules and
31 regulations prescribed by the Department.
32 (b) For purposes of the use tax, if any such payment
33 provided for in Sections 50-5 through 50-140 exceeds the
-1027- LRB9000671KDdvA
1 taxpayer's liabilities under this Code, as shown by an
2 original monthly return, the Department shall issue to the
3 taxpayer a credit memorandum no later than 30 days after the
4 date of payment, which memorandum may be submitted by the
5 taxpayer to the Department in payment of tax liability
6 subsequently to be remitted by the taxpayer to the Department
7 or be assigned by the taxpayer to a similar taxpayer under
8 this Code, in accordance with reasonable rules and
9 regulations to be prescribed by the Department, except that
10 if such excess payment is shown on an original monthly return
11 and is made after December 31, 1986, no credit memorandum
12 shall be issued, unless requested by the taxpayer. If no
13 such request is made, the taxpayer may credit such excess
14 payment against tax liability subsequently to be remitted by
15 the taxpayer to the Department under this Code, in accordance
16 with reasonable rules and regulations prescribed by the
17 Department.
18 (c) If the Department subsequently determines that all
19 or any part of the credit taken was not actually due to the
20 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount
21 shall be reduced by 2.1% or 1.75% of the difference between
22 the credit taken and that actually due, and the taxpayer
23 shall be liable for penalties and interest on such
24 difference.
25 Section 50-130. Credit for motor fuel retailer. If a
26 retailer of motor fuel is entitled to a credit under Section
27 10-30 which exceeds the taxpayer's liability to the
28 Department under Article 10 for the month which the taxpayer
29 is filing a return, the Department shall issue the taxpayer a
30 credit memorandum for the excess.
31 Section 50-135. Payment by manufacturers, importers, and
32 wholesalers. For greater simplicity of administration,
-1028- LRB9000671KDdvA
1 manufacturers, importers and wholesalers whose products are
2 sold at retail in Illinois by numerous retailers or
3 servicemen, and who wish to do so, may assume the
4 responsibility for accounting and paying to the Department
5 all tax accruing under this Code with respect to such sales,
6 if the retailers or servicemen who are affected do not make
7 written objection to the Department to this arrangement.
8 Section 50-140. Fair reports.
9 (a) Any person who promotes, organizes, provides retail
10 selling space for concessionaires or other types of sellers
11 at the Illinois State Fair, DuQuoin State Fair, county fairs,
12 local fairs, art shows, flea markets and similar exhibitions
13 or events, including any transient merchant as defined by
14 Section 2 of the Transient Merchant Act of 1987, is required
15 to file a report with the Department providing the name of
16 the merchant's business, the name of the person or persons
17 engaged in merchant's business, the permanent address and
18 Illinois Retailers Occupation Tax Registration Number of the
19 merchant, the dates and location of the event and other
20 reasonable information that the Department may require. The
21 report must be filed not later than the 20th day of the month
22 next following the month during which the event with retail
23 sales was held. Any person who fails to file a report
24 required by this Section commits a business offense and is
25 subject to a fine not to exceed $250.
26 (b) Any person engaged in the business of selling
27 tangible personal property at retail as a concessionaire or
28 other type of seller at the Illinois State Fair, county
29 fairs, art shows, flea markets and similar exhibitions or
30 events, or any transient merchants, as defined by Section 2
31 of the Transient Merchant Act of 1987, may be required to
32 make a daily report of the amount of such sales to the
33 Department and to make a daily payment of the full amount of
-1029- LRB9000671KDdvA
1 tax due. The Department shall impose this requirement when
2 it finds that there is a significant risk of loss of revenue
3 to the State at such an exhibition or event. Such a finding
4 shall be based on evidence that a substantial number of
5 concessionaires or other sellers who are not residents of
6 Illinois will be engaging in the business of selling tangible
7 personal property at retail at the exhibition or event, or
8 other evidence of a significant risk of loss of revenue to
9 the State. The Department shall notify concessionaires and
10 other sellers affected by the imposition of this requirement.
11 In the absence of notification by the Department, the
12 concessionaires and other sellers shall file their returns as
13 otherwise required in Sections 50-5 through 50-140.
14 Section 50-145. Examination and correction of return.
15 The provisions of this Section shall apply to the retailers'
16 occupation tax, the use tax, the service occupation tax, and
17 the service use tax, except that for purposes of the use tax
18 and the service occupation tax, the time limitation
19 provisions shall run from the date when the tax is due rather
20 than from the date when gross receipts are received, and for
21 purposes of the service use tax, the time limitations
22 provisions shall run from the date when gross receipts are
23 received. As soon as practicable after any return is filed,
24 the Department shall examine such return and shall, if
25 necessary, correct such return according to its best judgment
26 and information. If the correction of a return results in an
27 amount of tax that is understated on the taxpayer's return
28 due to a mathematical error, the Department shall notify the
29 taxpayer that the amount of tax in excess of that shown on
30 the return is due and has been assessed. The term
31 "mathematical error" means arithmetic errors or incorrect
32 computations on the return or supporting schedules. No such
33 notice of additional tax due shall be issued on and after
-1030- LRB9000671KDdvA
1 each July 1 and January 1 covering gross receipts received
2 during any month or period of time more than 3 years prior to
3 such July 1 and January 1, respectively. Such notice of
4 additional tax due shall not be considered a notice of tax
5 liability nor shall the taxpayer have any right of protest.
6 In the event that the return is corrected for any reason
7 other than a mathematical error, any return so corrected by
8 the Department shall be prima facie correct and shall be
9 prima facie evidence of the correctness of the amount of tax
10 due, as shown therein. In correcting transaction by
11 transaction reporting returns provided for in Sections 50-5
12 through 50-140 of this Code, it shall be permissible for the
13 Department to show a single corrected return figure for any
14 given period of a calendar month instead of having to correct
15 each transaction by transaction return form individually and
16 having to show a corrected return figure for each of such
17 transaction by transaction return forms. In making a
18 correction of transaction by transaction, monthly or
19 quarterly returns covering a period of 6 months or more, it
20 shall be permissible for the Department to show a single
21 corrected return figure for any given 6-month period.
22 Instead of requiring the person filing such return to
23 file an amended return, the Department may simply notify him
24 of the correction or corrections it has made.
25 Proof of such correction by the Department may be made at
26 any hearing before the Department or in any legal proceeding
27 by a reproduced copy or computer print-out of the
28 Department's record relating thereto in the name of the
29 Department under the certificate of the Director of Revenue.
30 If reproduced copies of the Department's records are offered
31 as proof of such correction, the Director must certify that
32 those copies are true and exact copies of records on file
33 with the Department. If computer print-outs of the
34 Department's records are offered as proof of such correction,
-1031- LRB9000671KDdvA
1 the Director must certify that those computer print-outs are
2 true and exact representations of records properly entered
3 into standard electronic computing equipment, in the regular
4 course of the Department's business, at or reasonably near
5 the time of the occurrence of the facts recorded, from
6 trustworthy and reliable information. Such certified
7 reproduced copy or certified computer print-out shall without
8 further proof, be admitted into evidence before the
9 Department or in any legal proceeding and shall be prima
10 facie proof of the correctness of the amount of tax due, as
11 shown therein.
12 If the tax computed upon the basis of the gross receipts
13 as fixed by the Department is greater than the amount of tax
14 due under the return or returns as filed, the Department
15 shall (or if the tax or any part thereof that is admitted to
16 be due by a return or returns, whether filed on time or not,
17 is not paid, the Department may) issue the taxpayer a notice
18 of tax liability for the amount of tax claimed by the
19 Department to be due, together with a penalty in an amount
20 determined in accordance with Section 3-3 of the Uniform
21 Penalty and Interest Act. Provided, that if the incorrectness
22 of any return or returns as determined by the Department is
23 due to negligence or fraud, the penalty shall be in an amount
24 determined in accordance with Section 3-5 or Section 3-6 of
25 the Uniform Penalty and Interest Act, as the case may be. If
26 the notice of tax liability is not based on a correction of
27 the taxpayer's return or returns, but is based on the
28 taxpayer's failure to pay all or a part of the tax admitted
29 by his return or returns (whether filed on time or not) to be
30 due, such notice of tax liability shall be prima facie
31 correct and shall be prima facie evidence of the correctness
32 of the amount of tax due, as shown therein.
33 Proof of such notice of tax liability by the Department
34 may be made at any hearing before the Department or in any
-1032- LRB9000671KDdvA
1 legal proceeding by a reproduced copy of the Department's
2 record relating thereto in the name of the Department under
3 the certificate of the Director of Revenue. Such reproduced
4 copy shall without further proof, be admitted into evidence
5 before the Department or in any legal proceeding and shall be
6 prima facie proof of the correctness of the amount of tax
7 due, as shown therein.
8 If the person filing any return dies or becomes a person
9 under legal disability at any time before the Department
10 issues its notice of tax liability, such notice shall be
11 issued to the administrator, executor or other legal
12 representative, as such, of such person.
13 Except in case of a fraudulent return, or in the case of
14 an amended return (where a notice of tax liability may be
15 issued on or after each January 1 and July 1 for an amended
16 return filed not more than 3 years prior to such January 1 or
17 July 1, respectively), no notice of tax liability shall be
18 issued on and after each January 1 and July 1 covering gross
19 receipts received during any month or period of time more
20 than 3 years prior to such January 1 and July 1,
21 respectively. If, before the expiration of the time
22 prescribed in this Section for the issuance of a notice of
23 tax liability, both the Department and the taxpayer have
24 consented in writing to its issuance after such time, such
25 notice may be issued at any time prior to the expiration of
26 the period agreed upon. The period so agreed upon may be
27 extended by subsequent agreements in writing made before the
28 expiration of the period previously agreed upon. The
29 foregoing limitations upon the issuance of a notice of tax
30 liability shall not apply to the issuance of a notice of tax
31 liability with respect to any period of time prior thereto in
32 cases where the Department has, within the period of
33 limitation then provided, notified the person making the
34 return of a notice of tax liability even though such return,
-1033- LRB9000671KDdvA
1 with which the tax that was shown by such return to be due
2 was paid when the return was filed, had not been corrected by
3 the Department in the manner required herein prior to the
4 issuance of such notice, but in no case shall the amount of
5 any such notice of tax liability for any period otherwise
6 barred by this Code exceed for such period the amount shown
7 in the notice of tax liability theretofore issued.
8 If, when a tax or penalty under this Code becomes due and
9 payable, the person alleged to be liable therefor is out of
10 the State, the notice of tax liability may be issued within
11 the times herein limited after his coming into or return to
12 the State; and if, after the tax or penalty under this Code
13 becomes due and payable, the person alleged to be liable
14 therefor departs from and remains out of the State, the time
15 of his or her absence is no part of the time limited for the
16 issuance of the notice of tax liability; but the foregoing
17 provisions concerning absence from the State shall not apply
18 to any case in which, at the time when a tax or penalty
19 becomes due under this Code, the person allegedly liable
20 therefor is not a resident of this State.
21 The time limitation period on the Department's right to
22 issue a notice of tax liability shall not run during any
23 period of time in which the order of any court has the effect
24 of enjoining or restraining the Department from issuing the
25 notice of tax liability.
26 If such person or legal representative shall within 60
27 days after such notice of tax liability file a protest to
28 said notice of tax liability and request a hearing thereon,
29 the Department shall give notice to such person or legal
30 representative of the time and place fixed for such hearing
31 and shall hold a hearing in conformity with the provisions of
32 this Code, and pursuant thereto shall issue to such person or
33 legal representative a final assessment for the amount found
34 to be due as a result of such hearing.
-1034- LRB9000671KDdvA
1 If a protest to the notice of tax liability and a request
2 for a hearing thereon is not filed within 60 days after such
3 notice, such notice of tax liability shall become final
4 without the necessity of a final assessment being issued and
5 shall be deemed to be a final assessment.
6 After the issuance of a final assessment, or a notice of
7 tax liability which becomes final without the necessity of
8 actually issuing a final assessment as hereinbefore provided,
9 the Department, at any time before such assessment is reduced
10 to judgment, may (subject to rules of the Department) grant a
11 rehearing (or grant departmental review and hold an original
12 hearing if no previous hearing in the matter has been held)
13 upon the application of the person aggrieved. Pursuant to
14 such hearing or rehearing, the Department shall issue a
15 revised final assessment to such person or his legal
16 representative for the amount found to be due as a result of
17 such hearing or rehearing.
18 Section 50-150. Failure to make return.
19 The provisions of this Section shall apply to the
20 retailers' occupation tax, the use tax, the service
21 occupation tax, and the service use tax, except that for
22 purposes of the use tax, the service occupation tax, and the
23 service use tax, the time limitation provisions on the
24 issuance of notices of tax liability shall run from the date
25 when the tax is due rather than from the date when gross
26 receipts are received, and for purposes of the use tax and
27 the service use tax, in the case of a failure to file a
28 return required by this Code, no notice of tax liability
29 shall be issued on and after each July 1 and January 1
30 covering tax due with that return during any month or period
31 more than 6 years before that July 1 or January 1,
32 respectively. In case any person engaged in the business of
33 selling tangible personal property at retail fails to file a
-1035- LRB9000671KDdvA
1 return when and as herein required, but thereafter, prior to
2 the Department's issuance of a notice of tax liability under
3 this Section, files a return and pays the tax, he shall also
4 pay a penalty in an amount determined in accordance with
5 Section 3-3 of the Uniform Penalty and Interest Act.
6 In case any person engaged in the business of selling
7 tangible personal property at retail files the return at the
8 time required by this Code but fails to pay the tax, or any
9 part thereof, when due, a penalty in an amount determined in
10 accordance with Section 3-3 of the Uniform Penalty and
11 Interest Act shall be added thereto.
12 In case any person engaged in the business of selling
13 tangible personal property at retail fails to file a return
14 when and as herein required, but thereafter, prior to the
15 Department's issuance of a notice of tax liability under this
16 Section, files a return but fails to pay the entire tax, a
17 penalty in an amount determined in accordance with Section
18 3-3 of the Uniform Penalty and Interest Act shall be added
19 thereto.
20 In case any person engaged in the business of selling
21 tangible personal property at retail fails to file a return,
22 the Department shall determine the amount of tax due from him
23 according to its best judgment and information, which amount
24 so fixed by the Department shall be prima facie correct and
25 shall be prima facie evidence of the correctness of the
26 amount of tax due, as shown in such determination. In making
27 any such determination of tax due, it shall be permissible
28 for the Department to show a figure that represents the tax
29 due for any given period of 6 months instead of showing the
30 amount of tax due for each month separately. Proof of such
31 determination by the Department may be made at any hearing
32 before the Department or in any legal proceeding by a
33 reproduced copy or computer print-out of the Department's
34 record relating thereto in the name of the Department under
-1036- LRB9000671KDdvA
1 the certificate of the Director of Revenue. If reproduced
2 copies of the Department's records are offered as proof of
3 such determination, the Director must certify that those
4 copies are true and exact copies of records on file with the
5 Department. If computer print-outs of the Department's
6 records are offered as proof of such determination, the
7 Director must certify that those computer print-outs are true
8 and exact representations of records properly entered into
9 standard electronic computing equipment, in the regular
10 course of the Department's business, at or reasonably near
11 the time of the occurrence of the facts recorded, from
12 trustworthy and reliable information. Such certified
13 reproduced copy or certified computer print-out shall,
14 without further proof, be admitted into evidence before the
15 Department or in any legal proceeding and shall be prima
16 facie proof of the correctness of the amount of tax due, as
17 shown therein. The Department shall issue the taxpayer a
18 notice of tax liability for the amount of tax claimed by the
19 Department to be due, together with a penalty of 30% thereof.
20 However, where the failure to file any tax return
21 required under this Code on the date prescribed therefor
22 (including any extensions thereof), is shown to be
23 unintentional and nonfraudulent and has not occurred in the 2
24 years immediately preceding the failure to file on the
25 prescribed date or is due to other reasonable cause the
26 penalties imposed by this Code shall not apply.
27 If such person or the legal representative of such person
28 files, within 60 days after such notice, a protest to such
29 notice of tax liability and requests a hearing thereon, the
30 Department shall give notice to such person or the legal
31 representative of such person of the time and place fixed for
32 such hearing, and shall hold a hearing in conformity with the
33 provisions of this Code, and pursuant thereto shall issue a
34 final assessment to such person or to the legal
-1037- LRB9000671KDdvA
1 representative of such person for the amount found to be due
2 as a result of such hearing.
3 If a protest to the notice of tax liability and a request
4 for a hearing thereon is not filed within 60 days after such
5 notice, such notice of tax liability shall become final
6 without the necessity of a final assessment being issued and
7 shall be deemed to be a final assessment.
8 After the issuance of a final assessment, or a notice of
9 tax liability which becomes final without the necessity of
10 actually issuing a final assessment as hereinbefore provided,
11 the Department, at any time before such assessment is reduced
12 to judgment, may (subject to rules of the Department) grant a
13 rehearing (or grant departmental review and hold an original
14 hearing if no previous hearing in the matter has been held)
15 upon the application of the person aggrieved. Pursuant to
16 such hearing or rehearing, the Department shall issue a
17 revised final assessment to such person or his legal
18 representative for the amount found to be due as a result of
19 such hearing or rehearing.
20 Except in case of failure to file a return, or with the
21 consent of the person to whom the notice of tax liability is
22 to be issued, no notice of tax liability shall be issued on
23 and after each July 1 and January 1 covering gross receipts
24 received during any month or period of time more than 3 years
25 prior to such July 1 and January 1, respectively, except that
26 if a return is not filed at the required time, a notice of
27 tax liability may be issued not later than 3 years after the
28 time the return is filed. The foregoing limitations upon the
29 issuance of a notice of tax liability shall not apply to the
30 issuance of any such notice with respect to any period of
31 time prior thereto in cases where the Department has, within
32 the period of limitation then provided, notified a person of
33 the amount of tax computed even though the Department had not
34 determined the amount of tax due from such person in the
-1038- LRB9000671KDdvA
1 manner required herein prior to the issuance of such notice,
2 but in no case shall the amount of any such notice of tax
3 liability for any period otherwise barred by this Code exceed
4 for such period the amount shown in the notice theretofore
5 issued.
6 If, when a tax or penalty under this Code becomes due and
7 payable, the person alleged to be liable therefor is out of
8 the State, the notice of tax liability may be issued within
9 the times herein limited after his or her coming into or
10 return to the State; and if, after the tax or penalty under
11 this Code becomes due and payable, the person alleged to be
12 liable therefor departs from and remains out of the State,
13 the time of his or her absence is no part of the time limited
14 for the issuance of the notice of tax liability; but the
15 foregoing provisions concerning absence from the State shall
16 not apply to any case in which, at the time when a tax or
17 penalty becomes due under this Code, the person allegedly
18 liable therefor is not a resident of this State.
19 The time limitation period on the Department's right to
20 issue a notice of tax liability shall not run during any
21 period of time in which the order of any court has the effect
22 of enjoining or restraining the Department from issuing the
23 notice of tax liability.
24 In case of failure to pay the tax, or any portion
25 thereof, or any penalty provided for in this Code, or
26 interest, when due, the Department may bring suit to recover
27 the amount of such tax, or portion thereof, or penalty or
28 interest; or, if the taxpayer has died or become a person
29 under legal disability, may file a claim therefor against his
30 estate; provided that no such suit with respect to any tax,
31 or portion thereof, or penalty, or interest shall be
32 instituted more than 2 years after the date any proceedings
33 in court for review thereof have terminated or the time for
34 the taking thereof has expired without such proceedings being
-1039- LRB9000671KDdvA
1 instituted, except with the consent of the person from whom
2 such tax or penalty or interest is due; nor, except with such
3 consent, shall such suit be instituted more than 2 years
4 after the date any return is filed with the Department in
5 cases where the return constitutes the basis for the suit for
6 unpaid tax, or portion thereof, or penalty provided for in
7 this Code, or interest: provided that the time limitation
8 period on the Department's right to bring any such suit shall
9 not run during any period of time in which the order of any
10 court has the effect of enjoining or restraining the
11 Department from bringing such suit.
12 After the expiration of the period within which the
13 person assessed may file an action for judicial review under
14 the Administrative Review Law without such an action being
15 filed, a certified copy of the final assessment or revised
16 final assessment of the Department may be filed with the
17 Circuit Court of the county in which the taxpayer has his
18 principal place of business, or of Sangamon County in those
19 cases in which the taxpayer does not have his principal place
20 of business in this State. The certified copy of the final
21 assessment or revised final assessment shall be accompanied
22 by a certification which recites facts that are sufficient to
23 show that the Department complied with the jurisdictional
24 requirements of the Code in arriving at its final assessment
25 or its revised final assessment and that the taxpayer had his
26 opportunity for an administrative hearing and for judicial
27 review, whether he availed himself or herself of either or
28 both of these opportunities or not. If the court is satisfied
29 that the Department complied with the jurisdictional
30 requirements of the Code in arriving at its final assessment
31 or its revised final assessment and that the taxpayer had his
32 opportunity for an administrative hearing and for judicial
33 review, whether he availed himself of either or both of these
34 opportunities or not, the court shall render judgment in
-1040- LRB9000671KDdvA
1 favor of the Department and against the taxpayer for the
2 amount shown to be due by the final assessment or the revised
3 final assessment, plus any interest which may be due, and
4 such judgment shall be entered in the judgment docket of the
5 court. Such judgment shall bear the rate of interest as set
6 by the Uniform Penalty and Interest Act, but otherwise shall
7 have the same effect as other judgments. The judgment may be
8 enforced, and all laws applicable to sales for the
9 enforcement of a judgment shall be applicable to sales made
10 under such judgments. The Department shall file the certified
11 copy of its assessment, as herein provided, with the Circuit
12 Court within 2 years after such assessment becomes final
13 except when the taxpayer consents in writing to an extension
14 of such filing period, and except that the time limitation
15 period on the Department's right to file the certified copy
16 of its assessment with the Circuit Court shall not run during
17 any period of time in which the order of any court has the
18 effect of enjoining or restraining the Department from filing
19 such certified copy of its assessment with the Circuit Court.
20 If, when the cause of action for a proceeding in court
21 accrues against a person, he or she is out of the State, the
22 action may be commenced within the times herein limited,
23 after his or her coming into or return to the State; and if,
24 after the cause of action accrues, he or she departs from and
25 remains out of the State, the time of his or her absence is
26 no part of the time limited for the commencement of the
27 action; but the foregoing provisions concerning absence from
28 the State shall not apply to any case in which, at the time
29 the cause of action accrues, the party against whom the cause
30 of action accrues is not a resident of this State. The time
31 within which a court action is to be commenced by the
32 Department hereunder shall not run from the date the taxpayer
33 files a petition in bankruptcy under the Federal Bankruptcy
34 Act until 30 days after notice of termination or expiration
-1041- LRB9000671KDdvA
1 of the automatic stay imposed by the Federal Bankruptcy Act.
2 No claim shall be filed against the estate of any
3 deceased person or any person under legal disability for any
4 tax or penalty or part of either, or interest, except in the
5 manner prescribed and within the time limited by the Probate
6 Act of 1975.
7 The collection of tax or penalty or interest by any means
8 provided for herein shall not be a bar to any prosecution
9 under this Code.
10 In addition to any penalty provided for in this Code, any
11 amount of tax which is not paid when due shall bear interest
12 at the rate and in the manner specified in Sections 3-2 and
13 3-9 of the Uniform Penalty and Interest Act from the date
14 when such tax becomes past due until such tax is paid or a
15 judgment therefor is obtained by the Department. If the time
16 for making or completing an audit of a taxpayer's books and
17 records is extended with the taxpayer's consent, at the
18 request of and for the convenience of the Department, beyond
19 the date on which the statute of limitations upon the
20 issuance of a notice of tax liability by the Department
21 otherwise would run, no interest shall accrue during the
22 period of such extension or until a Notice of Tax Liability
23 is issued, whichever occurs first.
24 In addition to any other remedy provided by this Code,
25 and regardless of whether the Department is making or intends
26 to make use of such other remedy, where a corporation or
27 limited liability company registered under this Code violates
28 the provisions of this Code or of any rule or regulation
29 promulgated thereunder, the Department may give notice to the
30 Attorney General of the identity of such a corporation or
31 limited liability company and of the violations committed by
32 such a corporation or limited liability company, for such
33 action as is not already provided for by this Code and as the
34 Attorney General may deem appropriate.
-1042- LRB9000671KDdvA
1 If the Department determines that an amount of tax or
2 penalty or interest was incorrectly assessed, whether as the
3 result of a mistake of fact or an error of law, the
4 Department shall waive the amount of tax or penalty or
5 interest that accrued due to the incorrect assessment.
6 Section 50-160. Manufacturer's Purchase Credit.
7 (a) For purposes of the retailers' occupation tax, a
8 retailer may accept a Manufacturer's Purchase Credit
9 certification from a purchaser in satisfaction of use tax as
10 provided in Section 30-230 if the purchaser provides the
11 appropriate documentation as required by Section 30-230. A
12 Manufacturer's Purchase Credit certification, accepted by a
13 retailer as provided in Section 30-230, may be used by that
14 retailer to satisfy retailers' occupation tax liability in
15 the amount claimed in the certification, not to exceed 6.25%
16 of the receipts subject to tax from a qualifying purchase.
17 (b) For purposes of the service occupation tax, a
18 serviceman may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of service use
20 tax as provided in Section 30-230 if the purchaser provides
21 the appropriate documentation as required by Section 30-230.
22 A Manufacturer's Purchase Credit certification, accepted by a
23 serviceman as provided in Section 30-230 may be used by that
24 serviceman to satisfy service occupation tax liability in the
25 amount claimed in the certification, not to exceed 6.25% of
26 the receipts subject to tax from a qualifying purchase.
27 Section 55-5. Erroneous payment; credit or refund;
28 retailers' occupation tax. If it appears, after claim
29 therefor filed with the Department, that an amount of tax or
30 penalty or interest has been paid which was not due under
31 Article 10, whether as the result of a mistake of fact or an
32 error of law, except as hereinafter provided, then the
-1043- LRB9000671KDdvA
1 Department shall issue a credit memorandum or refund to the
2 person who made the erroneous payment or, if that person died
3 or became a person under legal disability, to his or her
4 legal representative, as such. For purposes of this Section,
5 the tax is deemed to be erroneously paid by a retailer when
6 the manufacturer of a motor vehicle sold by the retailer
7 accepts the return of that automobile and refunds to the
8 purchaser the selling price of that vehicle as provided in
9 the New Vehicle Buyer Protection Act. When a motor vehicle is
10 returned for a refund of the purchase price under the New
11 Vehicle Buyer Protection Act, the Department shall issue a
12 credit memorandum or a refund for the amount of tax paid by
13 the retailer under Article 10 attributable to the initial
14 sale of that vehicle. Claims submitted by the retailer are
15 subject to the same restrictions and procedures provided for
16 in this Code. If it is determined that the Department should
17 issue a credit memorandum or refund, the Department may first
18 apply the amount thereof against any tax or penalty or
19 interest due or to become due under this Code, the Municipal
20 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
21 Municipal Service Occupation Tax Act, the County Retailers'
22 Occupation Tax Act, the County Supplementary Retailers'
23 Occupation Tax Act, the County Service Occupation Tax Act,
24 the County Supplementary Service Occupation Tax Act, the
25 County Use Tax Act, the County Supplementary Use Tax Act,
26 Section 4 of the Water Commission Act of 1985, subsections
27 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
28 District Act, or subsections (e), (f) and (g) of Section 4.03
29 of the Regional Transportation Authority Act, from the person
30 who made the erroneous payment. If no tax or penalty or
31 interest is due and no proceeding is pending to determine
32 whether such person is indebted to the Department for tax or
33 penalty or interest, the credit memorandum or refund shall be
34 issued to the claimant; or (in the case of a credit
-1044- LRB9000671KDdvA
1 memorandum) the credit memorandum may be assigned and set
2 over by the lawful holder thereof, subject to reasonable
3 rules of the Department, to any other person who is subject
4 to this Code, the Municipal Retailers' Occupation Tax Act,
5 the Municipal Use Tax Act, the Municipal Service Occupation
6 Tax Act, the County Retailers' Occupation Tax Act, the County
7 Supplementary Retailers' Occupation Tax Act, the County
8 Service Occupation Tax Act, the County Supplementary Service
9 Occupation Tax Act, the County Use Tax Act, the County
10 Supplementary Use Tax Act, Section 4 of the Water Commission
11 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
12 the Local Mass Transit District Act, or subsections (e), (f)
13 and (g) of Section 4.03 of the Regional Transportation
14 Authority Act, and the amount thereof applied by the
15 Department against any tax or penalty or interest due or to
16 become due under this Code, the Municipal Retailers'
17 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
18 Service Occupation Tax Act, the County Retailers' Occupation
19 Tax Act, the County Supplementary Retailers' Occupation Tax
20 Act, the County Service Occupation Tax Act, the County
21 Supplementary Service Occupation Tax Act, the County Use Tax
22 Act, the County Supplementary Use Tax Act, Section 4 of the
23 Water Commission Act of 1985, subsections (b), (c) and (d) of
24 Section 5.01 of the Local Mass Transit District Act, or
25 subsections (e), (f) and (g) of Section 4.03 of the Regional
26 Transportation Authority Act, from such assignee.
27 No claim shall be allowed for any amount paid to the
28 Department, whether paid voluntarily or involuntarily, if
29 paid in total or partial liquidation of an assessment which
30 had become final before the claim for credit or refund to
31 recover the amount so paid is filed with the Department, or
32 if paid in total or partial liquidation of a judgment or
33 order of court.
34 No credit may be allowed or refund made for any amount
-1045- LRB9000671KDdvA
1 paid by or collected from any claimant unless it appears (a)
2 that the claimant bore the burden of such amount and has not
3 been relieved thereof nor reimbursed therefor and has not
4 shifted such burden directly or indirectly through inclusion
5 of such amount in the price of the tangible personal property
6 sold by him or her or in any manner whatsoever; and that no
7 understanding or agreement, written or oral, exists whereby
8 he or she or his or her legal representative may be relieved
9 of the burden of such amount, be reimbursed therefor or may
10 shift the burden thereof; or (b) that he or she or his or her
11 legal representative has repaid unconditionally such amount
12 to his or her vendee (1) who bore the burden thereof and has
13 not shifted such burden directly or indirectly, in any manner
14 whatsoever; (2) who, if he or she has shifted such burden,
15 has repaid unconditionally such amount to his own vendee; and
16 (3) who is not entitled to receive any reimbursement therefor
17 from any other source than from his or her vendor, nor to be
18 relieved of such burden in any manner whatsoever. No credit
19 may be allowed or refund made for any amount paid by or
20 collected from any claimant unless it appears that the
21 claimant has unconditionally repaid, to the purchaser, any
22 amount collected from the purchaser and retained by the
23 claimant with respect to the same transaction under Article
24 15.
25 If a retailer who has failed to pay retailers' occupation
26 tax on gross receipts from retail sales is required by the
27 Department to pay such tax, such retailer, without filing any
28 formal claim with the Department, shall be allowed to take
29 credit against such retailers' occupation tax liability to
30 the extent, if any, to which such retailer has paid an amount
31 equivalent to retailers' occupation tax or has paid use tax
32 in error to his or her vendor or vendors of the same tangible
33 personal property which such retailer bought for resale and
34 did not first use before selling it, and no penalty or
-1046- LRB9000671KDdvA
1 interest shall be charged to such retailer on the amount of
2 such credit. However, when such credit is allowed to the
3 retailer by the Department, the vendor is precluded from
4 refunding any of that tax to the retailer and filing a claim
5 for credit or refund with respect thereto with the
6 Department. The provisions of this amendatory Act shall be
7 applied retroactively, regardless of the date of the
8 transaction.
9 Section 65-5. Tax lien. The Department shall have a lien
10 for the taxes herein imposed or any portion thereof, or for
11 any penalty provided for in this Code, or for any amount of
12 interest which may be due as provided for in Section 50-150
13 of this Code, upon all the real and personal property of any
14 person to whom a final assessment or revised final assessment
15 has been issued as provided in this Code, or whenever a
16 return is filed without payment of the tax or penalty shown
17 therein to be due, including all such property of such
18 persons acquired after receipt of such assessment or filing
19 of such return.
20 However, where the lien arises because of the issuance of
21 a final assessment or revised final assessment by the
22 Department, such lien shall not attach and the notice
23 hereinafter referred to in this Section shall not be filed
24 until all proceedings in court for review of such final
25 assessment or revised final assessment have terminated or the
26 time for the taking thereof has expired without such
27 proceedings being instituted.
28 Upon the granting of a rehearing or departmental review
29 pursuant to Section 50-145 or Section 50-150 of this Code
30 after a lien has attached, such lien shall remain in full
31 force except to the extent to which the final assessment may
32 be reduced by a revised final assessment following such
33 rehearing or review.
-1047- LRB9000671KDdvA
1 The lien created by the issuance of a final assessment
2 shall terminate unless a notice of lien is filed, as provided
3 in Section 65-10, within 3 years from the date all
4 proceedings in court for the review of such final assessment
5 have terminated or the time for the taking thereof has
6 expired without such proceedings being instituted, or (in the
7 case of a revised final assessment issued pursuant to a
8 rehearing or departmental review) within 3 years from the
9 date all proceedings in court for the review of such revised
10 final assessment have terminated or the time for the taking
11 thereof has expired without such proceedings being
12 instituted; and where the lien results from the filing of a
13 return without payment of the tax or penalty shown therein to
14 be due, the lien shall terminate unless a notice of lien is
15 filed, as provided in Section 65-10 hereof, within 3 years
16 from the date when such return is filed with the Department:
17 provided that the time limitation period on the Department's
18 right to file a notice of lien shall not run during any
19 period of time in which the order of any court has the effect
20 of enjoining or restraining the Department from filing such
21 notice of lien.
22 If the Department finds that a taxpayer is about to
23 depart from the State, or to conceal himself or his property,
24 or to do any other act tending to prejudice or to render
25 wholly or partly ineffectual proceedings to collect such tax
26 unless such proceedings are brought without delay, or if the
27 Department finds that the collection of the amount due from
28 any taxpayer will be jeopardized by delay, the Department
29 shall give the taxpayer notice of such findings and shall
30 make demand for immediate return and payment of such tax,
31 whereupon such tax shall become immediately due and payable.
32 If the taxpayer, within 5 days after such notice (or within
33 such extension of time as the Department may grant), does not
34 comply with such notice or show to the Department that the
-1048- LRB9000671KDdvA
1 findings in such notice are erroneous, the Department may
2 file a notice of jeopardy assessment lien in the office of
3 the recorder of the county in which any property of the
4 taxpayer may be located and shall notify the taxpayer of such
5 filing. Such jeopardy assessment lien shall have the same
6 scope and effect as the statutory lien hereinbefore provided
7 for in this Section.
8 If the taxpayer believes that he does not owe some or all
9 of the tax for which the jeopardy assessment lien against him
10 has been filed, or that no jeopardy to the revenue in fact
11 exists, he may protest within 20 days after being notified by
12 the Department of the filing of such jeopardy assessment lien
13 and request a hearing, whereupon the Department shall hold a
14 hearing in conformity with the provisions of this Code and,
15 pursuant thereto, shall notify the taxpayer of its findings
16 as to whether or not such jeopardy assessment lien will be
17 released. If not, and if the taxpayer is aggrieved by this
18 decision, he may file an action for judicial review of such
19 final determination of the Department in accordance with
20 Section 77-5 of this Code and the Administrative Review Law.
21 If, pursuant to such hearing (or after an independent
22 determination of the facts by the Department without a
23 hearing), the Department determines that some or all of the
24 tax covered by the jeopardy assessment lien is not owed by
25 the taxpayer, or that no jeopardy to the revenue exists, or
26 if on judicial review the final judgment of the court is that
27 the taxpayer does not owe some or all of the tax covered by
28 the jeopardy assessment lien against him, or that no jeopardy
29 to the revenue exists, the Department shall release its
30 jeopardy assessment lien to the extent of such finding of
31 nonliability for the tax, or to the extent of such finding of
32 no jeopardy to the revenue.
33 The Department shall also release its jeopardy assessment
34 lien against the taxpayer whenever the tax and penalty
-1049- LRB9000671KDdvA
1 covered by such lien, plus any interest which may be due, are
2 paid.
3 Nothing in this Section shall be construed to give the
4 Department a preference over the rights of any bona fide
5 purchaser, holder of a security interest, mechanics
6 lienholder, mortgagee, or judgment lien creditor arising
7 prior to the filing of a regular notice of lien or a notice
8 of jeopardy assessment lien in the office of the recorder in
9 the county in which the property subject to the lien is
10 located: provided, however, that the word "bona fide", as
11 used in this Section shall not include any mortgage of real
12 or personal property or any other credit transaction that
13 results in the mortgagee or the holder of the security acting
14 as trustee for unsecured creditors of the taxpayer mentioned
15 in the notice of lien who executed such chattel or real
16 property mortgage or the document evidencing such credit
17 transaction. Such lien shall be inferior to the lien of
18 general taxes, special assessments and special taxes
19 heretofore or hereafter levied by any political subdivision
20 of this State.
21 In case title to land to be affected by the notice of
22 lien or notice of jeopardy assessment lien is registered
23 under the provisions of the Registered Titles (Torrens) Act,
24 such notice shall be filed in the office of the Registrar of
25 Titles of the county within which the property subject to the
26 lien is situated and shall be entered upon the register of
27 titles as a memorial or charge upon each folium of the
28 register of titles affected by such notice, and the
29 Department shall not have a preference over the rights of any
30 bona fide purchaser, mortgagee, judgment creditor or other
31 lien holder arising prior to the registration of such notice:
32 Provided, however, that the word "bona fide" shall not
33 include any mortgage of real or personal property or any
34 other credit transaction that results in the mortgagee or the
-1050- LRB9000671KDdvA
1 holder of the security acting as trustee for unsecured
2 creditors of the taxpayer mentioned in the notice of lien who
3 executed such chattel or real property mortgage or the
4 document evidencing such credit transaction.
5 Such regular lien or jeopardy assessment lien shall not
6 be effective against any purchaser with respect to any item
7 in a retailer's stock in trade purchased from the retailer in
8 the usual course of such retailer's business.
9 Section 65-10. Records of State tax liens. The recorder
10 of each county shall procure a file labeled "State Tax Lien
11 Notices" and an index book labeled "State Tax Lien Index".
12 When notice of any lien or jeopardy assessment lien is
13 presented to him for filing, he shall file it in numerical
14 order in the file and shall enter it alphabetically in the
15 index. The entry shall show the name and last known business
16 address of the person named in the notice, the serial number
17 of the notice, the date and hour of filing, whether it is a
18 regular lien or a jeopardy assessment lien, and the amount of
19 tax and penalty due and unpaid, plus the amount of interest
20 due under Section 50-150 of this Code at the time when the
21 notice of lien or jeopardy assessment lien is filed.
22 No recorder or registrar of titles of any county shall
23 require that the Department pay any costs or fees in
24 connection with recordation of any notice or other document
25 filed by the Department under this Code at the time such
26 notice or other document is presented for recordation. The
27 recorder or registrar of each county, in order to receive
28 payment for fees or costs incurred by the Department, shall
29 present the Department with monthly statements indicating the
30 amount of fees and costs incurred by the Department and for
31 which no payment has been received.
32 A notice of lien may be filed after the issuance of a
33 revised final assessment pursuant to a rehearing or
-1051- LRB9000671KDdvA
1 departmental review under Section 50-145 or Section 50-150 of
2 this Code.
3 When the lien obtained pursuant to this Code has been
4 satisfied, the Department shall issue a release to the
5 person, or his agent, against whom the lien was obtained and
6 such release shall contain in legible letters a statement as
7 follows:
8 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
9 BE FILED WITH THE RECORDER OR THE REGISTRAR
10 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
11 When a certificate of complete or partial release of lien
12 issued by the Department is presented for filing in the
13 office of the recorder or Registrar of Titles where a notice
14 of lien or notice of jeopardy assessment lien was filed, the
15 recorder, in the case of nonregistered property, shall
16 permanently attach the certificate of release to the notice
17 of lien or notice of jeopardy assessment lien and shall enter
18 the certificate of release and the date in the "State Tax
19 Lien Index" on the line where the notice of lien or notice of
20 jeopardy assessment lien is entered.
21 In the case of registered property, the Registrar of
22 Titles shall file and enter upon each folium of the register
23 of titles affected thereby a memorial of the certificate of
24 release which memorial when so entered shall act as a release
25 pro tanto of any memorial of such notice of lien or notice of
26 jeopardy assessment lien previously filed and registered.
27 Section 65-15. Tax liens; certificate of complete or
28 partial release. The Department shall issue a certificate of
29 complete or partial release of the lien:
30 (a) to the extent that the fair market value of any
31 property subject to the lien exceeds the amount of the lien
32 plus the amount of all prior liens upon such property;
33 (b) to the extent that such lien shall become
-1052- LRB9000671KDdvA
1 unenforceable;
2 (c) to the extent that the amount of such lien is paid
3 by the retailer whose property is subject to such lien,
4 together with any interest which may become due under Section
5 50-150 of this Code between the date when the notice of lien
6 is filed and the date when the amount of such lien is paid;
7 (d) to the extent that there is furnished to the
8 Department on a form to be approved and with a surety or
9 sureties satisfactory to the Department a bond that is
10 conditioned upon the payment of the amount of such lien,
11 together with any interest which may become due under Section
12 50-150 of this Code after the notice of lien is filed, but
13 before the amount thereof is fully paid;
14 (e) to the extent and under the circumstances specified
15 in Section 65-5 of this Code in the case of jeopardy
16 assessment liens;
17 (f) to the extent to which an assessment is reduced
18 pursuant to a rehearing or departmental review under Section
19 50-145 or Section 50-150 of this Code.
20 A certificate of complete or partial release of any lien
21 shall be held conclusive that the lien upon the property
22 covered by the certificate is extinguished to the extent
23 indicated by such certificate.
24 Section 65-20. Tax liens on realty; enforcement. In
25 addition to any other remedy provided for by the laws of this
26 State, and provided that no hearing or proceedings for review
27 provided by this Code shall be pending, and the time for the
28 taking thereof shall have expired, the Department may
29 foreclose in the circuit court any lien on real property for
30 any tax or penalty imposed by this Code to the same extent
31 and in the same manner as in the enforcement of other liens.
32 Provided that such proceedings to foreclose shall not be
33 instituted more than 20 years after the filing of the notice
-1053- LRB9000671KDdvA
1 of lien under the provisions of Section 65-10, except that
2 the time limitation period on the Department's right to
3 commence any such foreclosure proceeding shall not run during
4 any period of time in which a court order has the effect of
5 enjoining or restraining the Department from commencing such
6 foreclosure proceeding. The process, practice and procedure
7 for such foreclosure shall be the same as provided in the
8 Civil Practice Law, as amended. The provisions of this
9 amendatory Act of 1984 shall apply to any lien which has not
10 expired before September 13, 1984.
11 Section 65-25. Demand for payment of tax. In addition to
12 any other remedy provided for by the laws of this State, if
13 the taxes imposed by this Code are not paid within the time
14 required by this Code, the Department, or some person
15 designated by it, may cause a demand to be made on the
16 taxpayer for the payment of the tax. If the tax remains
17 unpaid for 10 days after demand has been made and no
18 proceedings have been taken for review, the Department may
19 issue a warrant directed to the sheriff of any county of the
20 State or to any State officer authorized to serve process,
21 commanding the sheriff or other officer to levy upon property
22 and rights to property (whether real or personal, tangible or
23 intangible) of the taxpayer, without exemption, found within
24 his or her jurisdiction, for the payment of the amount of
25 unpaid tax with the added penalties, interest and the cost of
26 executing the warrant. The term "levy" includes the power of
27 distraint and seizure by any means. In any case in which the
28 warrant to levy has been issued, the sheriff or other person
29 to whom the warrant was directed may seize and sell such
30 property or rights to property. Such warrant shall be
31 returned to the Department together with the money collected
32 by virtue of the warrant within the time specified in the
33 warrant, which may not be less than 20 nor more than 90 days
-1054- LRB9000671KDdvA
1 from the date of the warrant. The sheriff or other officer to
2 whom such warrant is directed shall proceed in the same
3 manner as is prescribed by law for proceeding against
4 property to enforce judgments which are entered by a circuit
5 court of this State, and is entitled to the same fees for his
6 or her services in executing the warrant, to be collected in
7 the same manner. The Department, or some officer, employee or
8 agent designated by it, may bid for and purchase any such
9 property sold.
10 No proceedings for a levy under this Section may be
11 commenced more than 20 years after the latest date for filing
12 of the notice of lien under Section 65-10 of this Code,
13 without regard to whether such notice was actually filed.
14 Any officer or employee of the Department designated in
15 writing by the Director is authorized to serve process under
16 this Section to levy upon accounts or other intangible assets
17 of a taxpayer held by a financial organization, as defined by
18 Section 1501 of the Illinois Income Tax Act. In addition to
19 any other provisions of this Section, any officer or employee
20 of the Department designated in writing by the Director may
21 levy upon the following property and rights to property
22 belonging to a taxpayer: contractual payments, accounts and
23 notes receivable and other evidences of debt, and interest on
24 bonds, by serving a notice of levy on the person making such
25 payment. Levy shall not be made until the Department has
26 caused a demand to be made on the taxpayer in the manner
27 provided above. In addition to any other provisions of this
28 Section, any officer or employee of the Department designated
29 in writing by the Director, may levy upon the salary, wages,
30 commissions and bonuses of any employee, including officers,
31 employees, or elected officials of the United States as
32 authorized by Section 5520a of the Government Organization
33 and Employees Act (5 U.S.C. 5520a), but not upon the salary
34 or wages of officers, employees, or elected officials of any
-1055- LRB9000671KDdvA
1 state other than this State, by serving a notice of levy on
2 the employer. Levy shall not be made until the Department
3 has caused a demand to be made on the employee in the manner
4 provided above. The provisions of Section 12-803 of the Code
5 of Civil Procedure relating to maximum compensation subject
6 to collection under wage deduction orders shall apply to all
7 levies made upon compensation under this Section. To the
8 extent of the amount due on the levy, the employer or other
9 person making payments to the taxpayer shall hold any
10 non-exempt wages or other payments due or which subsequently
11 come due. The levy or balance due thereon is a lien on wages
12 or other payments due at the time of the service of the
13 notice of levy, and such lien shall continue as to subsequent
14 earnings and other payments until the total amount due upon
15 the levy is paid, except that such lien on subsequent
16 earnings or other payments shall terminate sooner if the
17 employment relationship is terminated or if the notice of
18 levy is rescinded or modified. The employer or other person
19 making payments to the taxpayer shall file, on or before the
20 return dates stated in the notice of levy (which shall not be
21 more often than bimonthly) a written answer under oath to
22 interrogatories, setting forth the amount due as wages or
23 other payments to the taxpayer for the payment periods ending
24 immediately prior to the appropriate return date. A lien
25 obtained hereunder shall have priority over any subsequent
26 lien obtained pursuant to Section 12-808 of the Code of Civil
27 Procedure, except that liens for the support of a spouse or
28 dependent children shall have priority over all liens
29 obtained hereunder.
30 In any case where property or rights to property have
31 been seized by an officer of the Illinois Department of Law
32 Enforcement, or successor agency thereto, under the authority
33 of a warrant to levy issued by the Department of Revenue, the
34 Department of Revenue may take possession of and may sell
-1056- LRB9000671KDdvA
1 such property or rights to property and the Department of
2 Revenue may contract with third persons to conduct sales of
3 such property or rights to the property. In the conduct of
4 such sales, the Department of Revenue shall proceed in the
5 same manner as is prescribed by law for proceeding against
6 property to enforce judgments which are entered by a circuit
7 court of this State. If, in the Department's opinion, no
8 offer to purchase at such sale is acceptable and the State's
9 interest would be better served by retaining the property for
10 sale at a later date, then the Department may decline to
11 accept any bid and may retain the property for sale at a
12 later date.
13 Section 65-30. Sale of property on which judgment for
14 tax is inferior; redemption. Except as to any sale had by
15 virtue of a judgment of foreclosure in accordance with
16 Article XV of the Code of Civil Procedure, whenever any real
17 estate has been or is sold at a judicial sale or a sale for
18 the enforcement of a judgment and such real estate is then
19 subject to a tax lien or notice of tax lien in favor of the
20 Department, as hereinbefore provided, and which is junior or
21 inferior to the lien so enforced or foreclosed by or through
22 that sale, the right to redeem in any manner under or by
23 virtue of such tax lien or claim for tax lien from such sale
24 or from the lien so foreclosed or enforced terminates at the
25 end of 12 months from the date upon which there is filed for
26 record in the office of the recorder for the county in which
27 the lands so sold are situated, if such lands are
28 unregistered, or in the office of the Registrar of Titles for
29 such county, if such lands are registered, a certified copy
30 of the original or duplicate recorded or registered
31 certificate of such sale, such certified copy being endorsed
32 by the Director of Revenue showing service of a copy of such
33 certificate upon him or her, and upon such service it shall
-1057- LRB9000671KDdvA
1 be the duty of such officer to make such endorsement.
2 Service may be by United States registered or certified mail.
3 Section 70-5. Revocation of certificate of registration.
4 The Department may, after notice and a hearing as provided
5 herein, revoke the certificate of registration of any person
6 who violates any of the provisions of this Code. Before
7 revocation of a certificate of registration the Department
8 shall, within 90 days after non-compliance and at least 7
9 days prior to the date of the hearing, give the person so
10 accused notice in writing of the charge against him or her,
11 and on the date designated shall conduct a hearing upon this
12 matter. The lapse of such 90 day period shall not preclude
13 the Department from conducting revocation proceedings at a
14 later date if necessary. Any hearing held under this Section
15 shall be conducted by the Director of Revenue or by any
16 officer or employee of the Department designated, in writing,
17 by the Director of Revenue.
18 Upon the hearing of any such proceeding, the Director of
19 Revenue, or any officer or employee of the Department
20 designated, in writing, by the Director of Revenue, may
21 administer oaths and the Department may procure by its
22 subpoena the attendance of witnesses and, by its subpoena
23 duces tecum, the production of relevant books and papers. Any
24 circuit court, upon application either of the accused or of
25 the Department, may, by order duly entered, require the
26 attendance of witnesses and the production of relevant books
27 and papers, before the Department in any hearing relating to
28 the revocation of certificates of registration. Upon refusal
29 or neglect to obey the order of the court, the court may
30 compel obedience thereof by proceedings for contempt.
31 The Department may, by application to any circuit court,
32 obtain an injunction restraining any person who engages in
33 the business of selling tangible personal property at retail
-1058- LRB9000671KDdvA
1 in this State without a certificate of registration (either
2 because the certificate of registration has been revoked or
3 because of a failure to obtain a certificate of registration
4 in the first instance) from engaging in such business until
5 such person, as if he or she were a new applicant for a
6 certificate of registration, shall comply with all of the
7 conditions, restrictions and requirements of Sections 35-5
8 through 35-45 of this Code and qualify for and obtain a
9 certificate of registration. Upon refusal or neglect to obey
10 the order of the court, the court may compel obedience
11 thereof by proceedings for contempt.
12 It shall not be a defense in a proceeding before the
13 Department to revoke a certificate of registration issued
14 under this Code, or in any action by the Department to
15 collect any tax due under this Code, that the holder of the
16 certificate is a party to an installment payment agreement
17 under Sections 35-5 through 35-45 if the liability which is
18 the basis of the revocation proceeding, or the tax that is
19 sought to be collected: (1) was incurred after the date of
20 the agreement was approved by the Department; or (2) was
21 incurred prior to the date the agreement was approved by the
22 Department, but was not included in the agreement; or (3) was
23 included in the agreement, but the taxpayer is in default of
24 the agreement.
25 Section 70-10. Investigations and hearings. For the
26 purpose of administering and enforcing the provisions of this
27 Code, the Department, or any officer or employee of the
28 Department designated, in writing, by the Director thereof,
29 may hold investigations and hearings concerning any matters
30 covered by this Code and may examine any books, papers,
31 records or memoranda bearing upon the sales of tangible
32 personal property or services of any such person, and may
33 require the attendance of such person or any officer or
-1059- LRB9000671KDdvA
1 employee of such person, or of any person having knowledge of
2 such business, and may take testimony and require proof for
3 its information. In the conduct of any investigation or
4 hearing, neither the Department nor any officer or employee
5 thereof shall be bound by the technical rules of evidence,
6 and no informality in any proceeding, or in the manner of
7 taking testimony, shall invalidate any order, decision, rule
8 or regulation made or approved or confirmed by the
9 Department. The Director of Revenue, or any officer or
10 employee of the Department authorized by the Director
11 thereof, shall have power to administer oaths to such
12 persons. The books, papers, records and memoranda of the
13 Department, or parts thereof, may be proved in any hearing,
14 investigation, or legal proceeding by a reproduced copy
15 thereof under the certificate of the Director of Revenue.
16 Such reproduced copy shall, without further proof, be
17 admitted into evidence before the Department or in any legal
18 proceeding.
19 Section 70-15. Incriminating testimony. No person shall
20 be excused from testifying or from producing any books,
21 papers, records or memoranda in any investigation or upon any
22 hearing, when ordered to do so by the Department or any
23 officer or employee thereof, upon the ground that the
24 testimony or evidence, documentary or otherwise, may tend to
25 incriminate him or subject him to a criminal penalty, but no
26 person shall be prosecuted or subjected to any criminal
27 penalty for, or on account of, any transaction made or thing
28 concerning which he may testify or produce evidence,
29 documentary or otherwise, before the Department or an officer
30 or employee thereof; provided, that such immunity shall
31 extend only to a natural person who, in obedience to a
32 subpoena, gives testimony under oath or produces evidence,
33 documentary or otherwise, under oath. No person so testifying
-1060- LRB9000671KDdvA
1 shall be exempt from prosecution and punishment for perjury
2 committed in so testifying.
3 Section 70-20. Subpoenas; witnesses; depositions. The
4 Department or any officer or employee of the Department
5 designated, in writing, by the Director thereof, shall at its
6 or his or her own instance, or on the written request of any
7 other party to the proceeding, issue subpoenas requiring the
8 attendance of and the giving of testimony by witnesses, and
9 subpoenas duces tecum requiring the production of books,
10 papers, records or memoranda. All subpoenas and subpoenas
11 duces tecum issued under the terms of this Code may be served
12 by any person of full age. The fees of witnesses for
13 attendance and travel shall be the same as the fees of
14 witnesses before the circuit court of this State; such fees
15 to be paid when the witness is excused from further
16 attendance. When the witness is subpoenaed at the instance of
17 the Department or any officer or employee thereof, such fees
18 shall be paid in the same manner as other expenses of the
19 Department, and when the witness is subpoenaed at the
20 instance of any other party to any such proceeding the
21 Department may require that the cost of service of the
22 subpoena or subpoena duces tecum and the fee of the witness
23 be borne by the party at whose instance the witness is
24 summoned. In such case, the Department, in its discretion,
25 may require a deposit to cover the cost of such service and
26 witness fees. A subpoena or subpoena duces tecum issued as
27 aforesaid shall be served in the same manner as a subpoena
28 issued out of a court.
29 Any circuit court of this State, upon the application of
30 the Department or any officer or employee thereof, or upon
31 the application of any other party to the proceeding, may, in
32 its discretion, compel the attendance of witnesses, the
33 production of books, papers, records or memoranda and the
-1061- LRB9000671KDdvA
1 giving of testimony before the Department or any officer or
2 employee thereof conducting an investigation or holding a
3 hearing authorized by this Code, by an attachment for
4 contempt, or otherwise, in the same manner as production of
5 evidence may be compelled before the court.
6 The Department or any officer or employee thereof, or any
7 other party in an investigation or hearing before the
8 Department, may cause the depositions of witnesses within the
9 State to be taken in the manner prescribed by law for like
10 depositions in civil actions in courts of this State, and to
11 that end compel the attendance of witnesses and the
12 production of books, papers, records or memoranda.
13 Section 77-5. Review under Administrative Review Law.
14 The Department is authorized to make, promulgate and enforce
15 such reasonable rules and regulations relating to the
16 administration and enforcement of the provisions of this Code
17 as may be deemed expedient.
18 Whenever notice is required by this Code, such notice may
19 be given by United States registered or certified mail,
20 addressed to the person concerned at his last known address,
21 and proof of such mailing shall be sufficient for the
22 purposes of this Code. Notice of any hearing provided for by
23 this Code shall be so given not less than 7 days prior to the
24 day fixed for the hearing. Following the initial contact of a
25 person represented by an attorney, the Department shall not
26 contact the person concerned but shall only contact the
27 attorney representing the person concerned.
28 All hearings provided for in this Code with respect to or
29 concerning a taxpayer having his or her principal place of
30 business in this State other than in Cook County shall be
31 held at the Department's office nearest to the location of
32 the taxpayer's principal place of business: provided that if
33 the taxpayer has his or her principal place of business in
-1062- LRB9000671KDdvA
1 Cook County, such hearing shall be held in Cook County; and
2 provided, further, that if the taxpayer does not have his or
3 her principal place of business in this State, such hearing
4 shall be held in Sangamon County.
5 The Circuit Court of the County wherein the taxpayer has
6 his or her principal place of business, or of Sangamon County
7 in those cases where the taxpayer does not have his or her
8 principal place of business in this State, shall have power
9 to review all final administrative decisions of the
10 Department in administering the provisions of this Code:
11 provided that if the administrative proceeding which is to be
12 reviewed judicially is a claim for refund proceeding
13 commenced in accordance with Section 55-5 or 55-10 of this
14 Code and Section 2a of the State Officers and Employees Money
15 Disposition Act, the Circuit Court having jurisdiction of
16 the action for judicial review under this Section and under
17 the Administrative Review Law shall be the same court that
18 entered the temporary restraining order or preliminary
19 injunction which is provided for in Section 2a of the State
20 Officers and Employees Money Disposition Act, and which
21 enables such claim proceeding to be processed and disposed of
22 as a claim for refund proceeding rather than as a claim for
23 credit proceeding.
24 The provisions of the Administrative Review Law, and the
25 rules adopted pursuant thereto, shall apply to and govern all
26 proceedings for the judicial review of final administrative
27 decisions of the Department hereunder. The term
28 "administrative decision" is defined as in Section 3-101 of
29 the Code of Civil Procedure.
30 Any person filing an action under the Administrative
31 Review Law to review a final assessment or revised final
32 assessment issued by the Department under this Code shall,
33 within 20 days after filing the complaint, file a bond with
34 good and sufficient surety or sureties residing in this State
-1063- LRB9000671KDdvA
1 or licensed to do business in this State or, instead of the
2 bond, obtain an order from the court imposing a lien upon the
3 plaintiff's property as provided in Article 65. If the person
4 filing the complaint fails to comply with this bonding
5 requirement within 20 days after filing the complaint, the
6 Department shall file a motion to dismiss and the court shall
7 dismiss the action unless the person filing the action
8 complies with the bonding requirement set out in this
9 provision within 30 days after the filing of the Department's
10 motion to dismiss. Upon dismissal of any complaint for
11 failure to comply with the jurisdictional prerequisites
12 herein set forth, the court is empowered to and shall enter
13 judgment against the taxpayer and in favor of the Department
14 in the amount of the final assessment or revised final
15 assessment, together with any interest which may have accrued
16 since the Department issued the final assessment or revised
17 final assessment, and for costs, which judgment is
18 enforceable as other judgments for the payment of money. The
19 lien provided for in this Section shall not be applicable to
20 the real property of a corporate surety duly licensed to do
21 business in this State. The amount of such bond shall be
22 fixed and approved by the court, but shall not be less than
23 the amount of the tax and penalty claimed to be due by the
24 Department in its final assessment or revised final
25 assessment to the person filing such bond, plus the amount of
26 interest due from such person to the Department at the time
27 when the Department issued its final assessment to such
28 person. Such bond shall be executed to the Department of
29 Revenue and shall be conditioned on the taxpayer's payment
30 within 30 days after termination of the proceedings for
31 judicial review of the amount of tax and penalty and interest
32 found by the court to be due in such proceedings for judicial
33 review. Such bond, when filed and approved, shall, from such
34 time until 2 years after termination of the proceedings for
-1064- LRB9000671KDdvA
1 judicial review in which the bond is filed, be a lien against
2 the real estate situated in the county in which the bond is
3 filed, of the person filing such bond, and of the surety or
4 sureties on such bond, until the condition of the bond has
5 been complied with or until the bond has been canceled as
6 hereinafter provided. If the person filing any such bond
7 fails to keep the condition thereof, such bond shall
8 thereupon be forfeited, and the Department may institute an
9 action upon such bond in its own name for the entire amount
10 of the bond and costs. Such action upon the bond shall be in
11 addition to any other remedy provided for herein. If the
12 person filing such bond complies with the condition thereof,
13 or if, in the proceedings for judicial review in which such
14 bond is filed, the court determines that no amount of tax or
15 penalty or interest is due, such bond shall be canceled.
16 If the court finds in a particular case that the
17 plaintiff cannot procure and furnish a satisfactory surety or
18 sureties for the kind of bond required herein, the court may
19 relieve the plaintiff of the obligation of filing such bond,
20 if, upon the timely application for a lien in lieu thereof
21 and accompanying proof therein submitted, the court is
22 satisfied that any such lien imposed would operate to secure
23 the assessment in the manner and to the degree as would a
24 bond. Upon a finding that such lien applied for would secure
25 the assessment at issue, the court shall enter an order, in
26 lieu of such bond, subjecting the plaintiff's real and
27 personal property (including subsequently acquired property),
28 situated in the county in which such order is entered, to a
29 lien in favor of the Department. Such lien shall be for the
30 amount of the tax and penalty claimed to be due by the
31 Department in its final assessment or revised final
32 assessment, plus the amount of interest due from such person
33 to the Department at the time when the Department issued its
34 final assessment to such person, and shall continue in full
-1065- LRB9000671KDdvA
1 force and effect until the termination of the proceedings for
2 judicial review, or until the plaintiff pays, to the
3 Department, the tax and penalty and interest to secure which
4 the lien is given, whichever happens first. In the exercise
5 of its discretion, the court may impose a lien regardless of
6 the ratio of the taxpayer's assets to the final assessment or
7 revised final assessment plus the amount of the interest and
8 penalty. Nothing in this Section shall be construed to give
9 the Department a preference over the rights of any bona fide
10 purchaser, mortgagee, judgment creditor or other lien holder
11 arising prior to the entry of the order creating such lien in
12 favor of the Department: provided, however, that the word
13 "bona fide", as used in this Section, shall not include any
14 mortgage of real or personal property or any other credit
15 transaction that results in the mortgagee or the holder of
16 the security acting as trustee for unsecured creditors of the
17 taxpayer mentioned in the order for lien who executed such
18 chattel or real property mortgage or the document evidencing
19 such credit transaction. Such lien shall be inferior to the
20 lien of general taxes, special assessments and special taxes
21 heretofore or hereafter levied by any political subdivision
22 of this State. Such lien shall not be effective against any
23 purchaser with respect to any item in a retailer's stock in
24 trade purchased from the retailer in the usual course of such
25 retailer's business, and such lien shall not be enforced
26 against the household effects, wearing apparel, or the books,
27 tools or implements of a trade or profession kept for use by
28 any person. Such lien shall not be effective against real
29 property whose title is registered under the provisions of
30 the Registered Titles (Torrens) Act until the provisions of
31 Section 85 of that Act are complied with.
32 Service upon the Director of Revenue or the Assistant
33 Director of Revenue of the Department of Revenue of summons
34 issued in an action to review a final administrative decision
-1066- LRB9000671KDdvA
1 of the Department shall be service upon the Department. The
2 Department shall certify the record of its proceedings if the
3 taxpayer pays to it the sum of 75¢ per page of testimony
4 taken before the Department and 25¢ per page of all other
5 matters contained in such record, except that these charges
6 may be waived where the Department is satisfied that the
7 aggrieved party is a poor person who cannot afford to pay
8 such charges. If payment for such record is not made by the
9 taxpayer within 30 days after notice from the Department or
10 the Attorney General of the cost thereof, the court in which
11 the proceeding is pending, on motion of the Department, shall
12 dismiss the complaint and (where the administrative decision
13 as to which the action for judicial review was filed is a
14 final assessment or revised final assessment) shall enter
15 judgment against the taxpayer and in favor of the Department
16 for the amount of tax and penalty shown by the Department's
17 final assessment or revised final assessment to be due, plus
18 interest as provided for in Section 50-150 of this Code from
19 the date when the liability upon which such interest accrued
20 became delinquent until the entry of the judgment in the
21 action for judicial review under the Administrative Review
22 Law, and also for costs.
23 Whenever any proceeding provided by this Code is begun
24 before the Department, either by the Department or by a
25 person subject to this Code, and such person thereafter dies
26 or becomes a person under legal disability before such
27 proceeding is concluded, the legal representative of the
28 deceased or person under legal disability shall notify the
29 Department of such death or legal disability. Such legal
30 representative, as such, shall then be substituted by the
31 Department for such person. If the legal representative
32 fails to notify the Department of his or her appointment as
33 such legal representative, the Department may, upon its own
34 motion, substitute such legal representative in the
-1067- LRB9000671KDdvA
1 proceeding pending before the Department for the person who
2 died or became a person under legal disability.
3 The changes made by Public Act 89-60 to Section 12 of the
4 Retailers' Occupation Tax Act, the predecessor to this
5 Section 77-5, apply to all actions pending on and after June
6 30, 1995 to review a final assessment or revised final
7 assessment issued by the Department.
8 Section 80-5. Violations under the retailers' occupation
9 tax. This Section applies to the retailers' occupation tax
10 only. When the amount due is under $300, any person engaged
11 in the business of selling tangible personal property at
12 retail in this State who fails to file a return, or who files
13 a fraudulent return, or any officer, employee or agent of a
14 corporation, member, employee or agent of a partnership, or
15 manager, member, agent, or employee of a limited liability
16 company engaged in the business of selling tangible personal
17 property at retail in this State who, as such officer,
18 employee, agent, manager, or member is under a duty to file a
19 return, or any officer, agent or employee of a corporation,
20 member, agent, or employee of a partnership, or manager,
21 member, agent, or employee of a limited liability company
22 engaged in the business of selling tangible personal property
23 at retail in this State who files or causes to be filed or
24 signs or causes to be signed a fraudulent return filed on
25 behalf of such corporation or limited liability company, or
26 any accountant or other agent who knowingly enters false
27 information on the return of any taxpayer under Article 10,
28 is guilty of a Class 4 felony.
29 Any person who or any officer or director of any
30 corporation, partner or member of any partnership, or manager
31 or member of a limited liability company that: (a) violates
32 Sections 35-5 through 35-45 or (b) fails to keep books and
33 records, or fails to produce books and records as required by
-1068- LRB9000671KDdvA
1 Section 45-10 or (c) willfully violates a rule or regulation
2 of the Department for the administration and enforcement of
3 Article 10 is guilty of a Class A misdemeanor. Any person,
4 manager or member of a limited liability company, or officer
5 or director of any corporation who engages in the business of
6 selling tangible personal property at retail after the
7 certificate of registration of that person, corporation,
8 limited liability company, or partnership has been revoked is
9 guilty of a Class A misdemeanor. Each day such person,
10 corporation, or partnership is engaged in business without a
11 certificate of registration or after the certificate of
12 registration of that person, corporation, or partnership has
13 been revoked constitutes a separate offense.
14 Any purchaser who obtains a registration number or resale
15 number from the Department through misrepresentation, or who
16 represents to a seller that such purchaser has a registration
17 number or a resale number from the Department when he knows
18 that he does not, or who uses his registration number or
19 resale number to make a seller believe that he is buying
20 tangible personal property for resale when such purchaser in
21 fact knows that this is not the case is guilty of a Class 4
22 felony.
23 Any distributor, supplier or other reseller of motor fuel
24 registered pursuant to Sections 35-5 through 35-50 who fails
25 to collect the prepaid tax on invoiced gallons of motor fuel
26 sold or who fails to deliver a statement of tax paid to the
27 purchaser or to the Department as required by Sections 10-30
28 and 10-35, respectively, shall be guilty of a Class A
29 misdemeanor if the amount due is under $300, and a Class 4
30 felony if the amount due is $300 or more.
31 When the amount due is under $300, any person who accepts
32 money that is due to the Department under Article 10 from a
33 taxpayer for the purpose of acting as the taxpayer's agent to
34 make the payment to the Department, but who fails to remit
-1069- LRB9000671KDdvA
1 such payment to the Department when due is guilty of a Class
2 4 felony.
3 Any seller who collects or attempts to collect an amount
4 (however designated) which purports to reimburse such seller
5 for retailers' occupation tax liability measured by receipts
6 which such seller knows are not subject to retailers'
7 occupation tax, or any seller who knowingly over-collects or
8 attempts to over-collect an amount purporting to reimburse
9 such seller for retailers' occupation tax liability in a
10 transaction which is subject to the tax that is imposed by
11 Article 10, shall be guilty of a Class 4 felony for each such
12 offense. This paragraph does not apply to an amount
13 collected by the seller as reimbursement for the seller's
14 retailers' occupation tax liability on receipts which are
15 subject to tax under Article 10 as long as such collection is
16 made in compliance with the tax collection brackets
17 prescribed by the Department in its rules and regulations.
18 When the amount due is $300 or more, any person engaged
19 in the business of selling tangible personal property at
20 retail in this State who fails to file a return, or who files
21 a fraudulent return, or any officer, employee or agent of a
22 corporation, member, employee or agent of a partnership, or
23 manager, member, agent, or employee of a limited liability
24 company engaged in the business of selling tangible personal
25 property at retail in this State who, as such officer,
26 employee, agent, manager, or member is under a duty to file a
27 return and who fails to file such return or any officer,
28 agent, or employee of a corporation, member, agent or
29 employee of a partnership, or manager, member, agent, or
30 employee of a limited liability company engaged in the
31 business of selling tangible personal property at retail in
32 this State who files or causes to be filed or signs or causes
33 to be signed a fraudulent return filed on behalf of such
34 corporation or limited liability company, or any accountant
-1070- LRB9000671KDdvA
1 or other agent who knowingly enters false information on the
2 return of any taxpayer under Article 10 is guilty of a Class
3 3 felony.
4 When the amount due is $300 or more, any person engaged
5 in the business of selling tangible personal property at
6 retail in this State who accepts money that is due to the
7 Department under Article 10 from a taxpayer for the purpose
8 of acting as the taxpayer's agent to make payment to the
9 Department but fails to remit such payment to the Department
10 when due, is guilty of a Class 3 felony.
11 Any person whose principal place of business is in this
12 State and who is charged with a violation under this Section
13 shall be tried in the county where his principal place of
14 business is located unless he asserts a right to be tried in
15 another venue.
16 Any taxpayer or agent of a taxpayer who with the intent
17 to defraud purports to make a payment due to the Department
18 by issuing or delivering a check or other order upon a real
19 or fictitious depository for the payment of money, knowing
20 that it will not be paid by the depository, shall be guilty
21 of a deceptive practice in violation of Section 17-1 of the
22 Criminal Code of 1961.
23 A prosecution for any act in violation of this Section
24 may be commenced at any time within 3 years of the commission
25 of that act.
26 Section 80-15. Misrepresentation of gasohol. For
27 purposes of the retailers' occupation tax and the use tax,
28 any person who knowingly sells or represents as gasohol any
29 fuel that does not qualify as gasohol under this Code is
30 guilty of a business offense and shall be fined not more than
31 $100 for each day that the sale or representation takes place
32 after notification from the Department of Agriculture that
33 the fuel in question does not qualify as gasohol.
-1071- LRB9000671KDdvA
1 Section 85-5. Disposition of retailers' occupation tax
2 receipts. This Section applies to the retailers' occupation
3 tax only. Beginning January 1, 1990, each month the
4 Department shall pay into the Local Government Tax Fund, a
5 special fund in the State treasury which is hereby created,
6 the net revenue realized for the preceding month from the 1%
7 tax on sales of food for human consumption which is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks and food which has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances and
12 insulin, urine testing materials, syringes and needles used
13 by diabetics.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the County and Mass Transit District Fund, a
16 special fund in the State treasury which is hereby created,
17 4% of the net revenue realized for the preceding month from
18 the 6.25% general rate.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the Local Government Tax Fund 16% of the net
21 revenue realized for the preceding month from the 6.25%
22 general rate on the selling price of tangible personal
23 property.
24 Of the remainder of the moneys received by the Department
25 pursuant to Article 10, disposition of funds shall be made as
26 provided in Section 85-25.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in this Section and Section 85-25,
29 disposition of funds shall be made as provided in Section
30 85-30.
31 Subject to payment of amounts into the Build Illinois
32 Fund and the McCormick Place Expansion Project Fund pursuant
33 to this Article, each month the Department shall pay into the
34 Local Government Distributive Fund 0.4% of the net revenue
-1072- LRB9000671KDdvA
1 realized for the preceding month from the 5% general rate or
2 0.4% of 80% of the net revenue realized for the preceding
3 month from the 6.25% general rate, as the case may be, on the
4 selling price of tangible personal property which amount
5 shall, subject to appropriation, be distributed as provided
6 in Section 2 of the State Revenue Sharing Act. No payments
7 or distributions pursuant to this paragraph shall be made if
8 the tax imposed by Article 10 on photoprocessing products is
9 declared unconstitutional, or if the proceeds from such tax
10 are unavailable for distribution because of litigation.
11 Subject to payment of amounts into the Build Illinois
12 Fund and the McCormick Place Expansion Project pursuant this
13 Article, beginning July 1, 1993, the Department shall each
14 month pay into the Illinois Tax Increment Fund 0.27% of 80%
15 of the net revenue realized for the preceding month from the
16 6.25% general rate on the selling price of tangible personal
17 property.
18 Of the remainder of the moneys received by the Department
19 pursuant to Article 10, 75% thereof shall be paid into the
20 State Treasury and 25% shall be reserved in a special account
21 and used only for the transfer to the Common School Fund as
22 part of the monthly transfer from the General Revenue Fund in
23 accordance with Section 8a of the State Finance Act.
24 As soon as possible after the first day of each month,
25 upon certification of the Department of Revenue, the
26 Comptroller shall order transferred and the Treasurer shall
27 transfer from the General Revenue Fund to the Motor Fuel Tax
28 Fund an amount equal to 1.7% of 80% of the net revenue
29 realized under Article 10 for the second preceding month;
30 except that this transfer shall not be made for the months
31 February through June, 1992.
32 For purposes of this Section, net revenue realized for a
33 month shall be the revenue collected by the State pursuant to
34 Article 10, less the amount paid out during that month as
-1073- LRB9000671KDdvA
1 refunds to taxpayers for overpayment of liability.
2 Section 85-10. Disposition of use tax receipts. This
3 Section shall apply to the use tax only. Beginning January
4 1, 1990, each month the Department shall pay into the State
5 and Local Sales Tax Reform Fund, a special fund in the State
6 Treasury which is hereby created, the net revenue realized
7 for the preceding month from the 1% tax on sales of food for
8 human consumption which is to be consumed off the premises
9 where it is sold (other than alcoholic beverages, soft drinks
10 and food which has been prepared for immediate consumption)
11 and prescription and nonprescription medicines, drugs,
12 medical appliances and insulin, urine testing materials,
13 syringes and needles used by diabetics.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the County and Mass Transit District Fund 4%
16 of the net revenue realized for the preceding month from the
17 6.25% general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund, a
23 special fund in the State Treasury, 20% of the net revenue
24 realized for the preceding month from the 6.25% general rate
25 on the selling price of tangible personal property, other
26 than tangible personal property which is purchased outside
27 Illinois at retail from a retailer and which is titled or
28 registered by an agency of this State's government.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the Local Government Tax Fund 16% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property which is purchased outside Illinois at retail from a
-1074- LRB9000671KDdvA
1 retailer and which is titled or registered by an agency of
2 this State's government.
3 Of the remainder of the moneys received by the Department
4 pursuant to Article 15, disposition of funds shall be made as
5 provided in Section 85-25.
6 Subject to payment of amounts into the Build Illinois
7 Fund as provided in this Section and Section 85-25,
8 distribution of funds shall be made as provided in Section
9 85-30.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to this Article, each month the Department shall pay into the
13 Local Government Distributive Fund .4% of the net revenue
14 realized for the preceding month from the 5% general rate, or
15 .4% of 80% of the net revenue realized for the preceding
16 month from the 6.25% general rate, as the case may be, on the
17 selling price of tangible personal property which amount
18 shall, subject to appropriation, be distributed as provided
19 in Section 2 of the State Revenue Sharing Act. No payments or
20 distributions pursuant to this paragraph shall be made if the
21 tax imposed by Article 15 on photoprocessing products is
22 declared unconstitutional, or if the proceeds from such tax
23 are unavailable for distribution because of litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project Fund, and the
26 Local Government Distributive Fund pursuant to this Article,
27 beginning July 1, 1993, the Department shall each month pay
28 into the Illinois Tax Increment Fund 0.27% of 80% of the net
29 revenue realized for the preceding month from the 6.25%
30 general rate on the selling price of tangible personal
31 property.
32 Of the remainder of the moneys received by the Department
33 pursuant to Article 15, 75% thereof shall be paid into the
34 State Treasury and 25% shall be reserved in a special account
-1075- LRB9000671KDdvA
1 and used only for the transfer to the Common School Fund as
2 part of the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under Article 15 for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June of 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to Article 15, less the
14 amount paid out during that month as refunds to taxpayers for
15 overpayment of liability.
16 Section 85-15. Distribution of service occupation tax
17 receipts. This Section shall apply to the service occupation
18 tax only. Beginning January 1, 1990, each month the
19 Department shall pay into the Local Government Tax Fund the
20 revenue realized for the preceding month from the 1% tax on
21 sales of food for human consumption which is to be consumed
22 off the premises where it is sold (other than alcoholic
23 beverages, soft drinks and food which has been prepared for
24 immediate consumption) and prescription and nonprescription
25 medicines, drugs, medical appliances and insulin, urine
26 testing materials, syringes and needles used by diabetics.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the County and Mass Transit District Fund 4%
29 of the revenue realized for the preceding month from the
30 6.25% general rate.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the
33 revenue realized for the preceding month from the 6.25%
-1076- LRB9000671KDdvA
1 general rate on transfers of tangible personal property.
2 Of the remainder of the moneys received by the Department
3 pursuant to Article 20, disposition of funds shall be made as
4 provided in Section 85-25.
5 Subject to payment of amounts into the Build Illinois
6 Fund as provided in this Section and Section 85-25,
7 disposition of funds shall be made as provided in Section
8 85-30.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to this Article, each month the Department shall pay into the
12 Local Government Distributive Fund 0.4% of the net revenue
13 realized for the preceding month from the 5% general rate or
14 0.4% of 80% of the net revenue realized for the preceding
15 month from the 6.25% general rate, as the case may be, on the
16 selling price of tangible personal property which amount
17 shall, subject to appropriation, be distributed as provided
18 in Section 2 of the State Revenue Sharing Act. No payments
19 or distributions pursuant to this paragraph shall be made if
20 the tax imposed by Article 20 on photoprocessing products is
21 declared unconstitutional, or if the proceeds from such tax
22 are unavailable for distribution because of litigation.
23 Subject to payment of amounts into the Build Illinois
24 Fund, the McCormick Place Expansion Project Fund, and the
25 Local Government Distributive Fund pursuant to this Article,
26 beginning July 1, 1993, the Department shall each month pay
27 into the Illinois Tax Increment Fund 0.27% of 80% of the net
28 revenue realized for the preceding month from the 6.25%
29 general rate on the selling price of tangible personal
30 property.
31 Remaining moneys received by the Department pursuant to
32 Article 20 shall be paid into the General Revenue Fund of the
33 State Treasury.
34 As soon as possible after the first day of each month,
-1077- LRB9000671KDdvA
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Article 20 for the second preceding
6 month; except that this transfer shall not be made for the
7 months February through June, 1992.
8 For purposes of this Section net revenue realized for a
9 month shall be the revenue collected by the State pursuant to
10 Article 20, less the amount paid out during that month as
11 refunds to taxpayers for overpayment of liability.
12 Section 90-10. Bulk sales. If any taxpayer, outside the
13 usual course of his business, sells or transfers the major
14 part of any one or more of (A) the stock of goods which he is
15 engaged in the business of selling, (B) the furniture or
16 fixtures, (C) the machinery and equipment, or (D) the real
17 property, of any business that is subject to the provisions
18 of this Code, the purchaser or transferee of such asset
19 shall, no later than 10 days after the sale or transfer, file
20 a notice of sale or transfer of business assets with the
21 Chicago office of the Department disclosing the name and
22 address of the seller or transferor, the name and address of
23 the purchaser or transferee, the date of the sale or
24 transfer, a copy of the sales contract and financing
25 agreements which shall include a description of the property
26 sold, the amount of the purchase price or a statement of
27 other consideration for the sale or transfer, the terms for
28 payment of the purchase price, and such other information as
29 the Department may reasonably require. If the purchaser or
30 transferee fails to file the above described notice of sale
31 with the Department within the prescribed time, the purchaser
32 or transferee shall be personally liable for the amount owed
33 hereunder by the seller or transferor to the Department up to
-1078- LRB9000671KDdvA
1 the amount of the reasonable value of the property acquired
2 by the purchaser or transferee. The seller or transferor
3 shall pay the Department the amount of tax, penalty and
4 interest (if any) due from him under this Code up to the date
5 of the payment of tax. The seller or transferor, or the
6 purchaser or transferee, at least 10 days before the date of
7 the sale or transfer, may notify the Department of the
8 intended sale or transfer and request the Department to audit
9 the books and records of the seller or transferor, or to do
10 whatever else may be necessary to determine how much the
11 seller or transferor owes to the Department hereunder up to
12 the date of the sale or transfer. The Department shall take
13 such steps as may be appropriate to comply with such request.
14 Any order issued by the Department pursuant to this
15 Section to withhold from the purchase price shall be issued
16 within 10 days after the Department receives notification of
17 a sale as provided in this Section. The purchaser or
18 transferee shall withhold such portion of the purchase price
19 as may be directed by the Department, but not to exceed a
20 minimum amount varying by type of business, as determined by
21 the Department pursuant to regulations, plus twice the
22 outstanding unpaid liabilities and twice the average
23 liability of preceding filings times the number of unfiled
24 returns, to cover the amount of all tax, penalty and interest
25 due and unpaid by the seller or transferor under this Code
26 or, if the payment of money or property is not involved,
27 shall withhold the performance of the condition that
28 constitutes the consideration for the sale or transfer.
29 Within 60 days after issuance of the initial order to
30 withhold, the Department shall provide written notice to the
31 purchaser or transferee of the actual amount of all taxes,
32 penalties and interest then due and whether or not additional
33 amounts may become due as a result of unfiled returns,
34 pending assessments and audits not completed. The purchaser
-1079- LRB9000671KDdvA
1 or transferee shall continue to withhold the amount directed
2 to be withheld by the initial order or such lesser amount as
3 is specified by the final withholding order or to withhold
4 the performance of the condition which constitutes the
5 consideration for the sale or transfer until the purchaser
6 or transferee receives from the Department a certificate
7 showing that such tax, penalty and interest have been paid or
8 a certificate from the Department showing that no tax,
9 penalty or interest is due from the seller or transferor
10 under this Code.
11 The purchaser or transferee is relieved of any duty to
12 continue to withhold from the purchase price and of any
13 liability for tax, penalty or interest due hereunder from the
14 seller or transferor if the Department fails to notify the
15 purchaser or transferee in the manner provided herein of the
16 amount to be withheld within 10 days after the sale or
17 transfer has been reported to the Department or within 60
18 days after issuance of the initial order to withhold, as the
19 case may be. The Department shall have the right to determine
20 amounts claimed on an estimated basis to allow for non-filed
21 periods, pending assessments and audits not completed,
22 however the purchaser or transferee shall be personally
23 liable only for the actual amount due when determined.
24 If the seller or transferor fails to pay the tax, penalty
25 and interest (if any) due from him hereunder and the
26 Department makes timely claim therefor against the purchaser
27 or transferee as hereinabove provided, then the purchaser or
28 transferee shall pay the amount so withheld from the purchase
29 price to the Department. If the purchaser or transferee fails
30 to comply with the requirements of this Section, the
31 purchaser or transferee shall be personally liable to the
32 Department for the amount owed hereunder by the seller or
33 transferor to the Department up to the amount of the
34 reasonable value of the property acquired by the purchaser or
-1080- LRB9000671KDdvA
1 transferee.
2 Any person who shall acquire any property or rights
3 thereto which, at the time of such acquisition, is subject to
4 a valid lien in favor of the Department shall be personally
5 liable to the Department for a sum equal to the amount of
6 taxes secured by such lien but not to exceed the reasonable
7 value of such property acquired by him.
8 Section 90-30. Tax stated as distinct item from selling
9 price.
10 (a) The use tax imposed by Article 15 shall when
11 collected be stated as a distinct item separate and apart
12 from the selling price of the tangible personal property.
13 However, where it is not possible to state the sales tax
14 separately in situations such as sales from vending machines
15 or sales of liquor by the drink the Department may by rule
16 exempt such sales from this requirement so long as purchasers
17 are notified by a sign that the tax is included in the
18 selling price.
19 (b) For purposes of the service use tax, except as
20 provided in subsection (c) of this Section, the selling price
21 of each item of tangible personal property transferred
22 incident to a sale of service may be stated as a distinct
23 item by the serviceman to the service customer and the
24 service use tax imposed by Article 25 shall when collected be
25 stated as a distinct item separate and apart from the selling
26 price of the tangible personal property. If the selling
27 price of each item of tangible personal property transferred
28 incidental to a sale of service is not stated as a separate
29 item on the serviceman's billing to the service customer,
30 then the service use tax imposed by Article 25 shall be based
31 on 50% of the serviceman's entire billing to the service
32 customer.
33 (c) For purposes of the service use tax, when a
-1081- LRB9000671KDdvA
1 serviceman contracts to design, develop and produce special
2 order machinery or equipment, the service use tax imposed by
3 Article 25 shall be based on the serviceman's cost price of
4 the tangible personal property transferred incident to the
5 completion of the contract.
-1082- LRB9000671KDdvA
1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 35 ILCS 120/Act rep.
5 35 ILCS 105/Act rep.
6 35 ILCS 115/Act rep.
7 35 ILCS 110/Act rep.
8 35 ILCS 120/1 from Ch. 120, par. 440
9 35 ILCS 120/1a from Ch. 120, par. 440a
10 35 ILCS 120/1a-1 from Ch. 120, par. 440a-1
11 35 ILCS 120/1c from Ch. 120, par. 440c
12 35 ILCS 120/1d from Ch. 120, par. 440d
13 35 ILCS 120/1e from Ch. 120, par. 440e
14 35 ILCS 120/1f from Ch. 120, par. 440f
15 35 ILCS 120/1g from Ch. 120, par. 440g
16 35 ILCS 120/1h from Ch. 120, par. 440h
17 35 ILCS 120/1i from Ch. 120, par. 440i
18 35 ILCS 120/1j from Ch. 120, par. 440j
19 35 ILCS 120/1k from Ch. 120, par. 440k
20 35 ILCS 120/1m from Ch. 120, par. 440m
21 35 ILCS 120/1n from Ch. 120, par. 440n
22 35 ILCS 120/2 from Ch. 120, par. 441
23 35 ILCS 120/2-5 from Ch. 120, par. 441-5
24 35 ILCS 120/2-5.5
25 35 ILCS 120/2-10 from Ch. 120, par. 441-10
26 35 ILCS 120/2-15 from Ch. 120, par. 441-15
27 35 ILCS 120/2-20 from Ch. 120, par. 441-20
28 35 ILCS 120/2-25 from Ch. 120, par. 441-25
29 35 ILCS 120/2-30 from Ch. 120, par. 441-30
30 35 ILCS 120/2-35 from Ch. 120, par. 441-35
31 35 ILCS 120/2-40 from Ch. 120, par. 441-40
32 35 ILCS 120/2-45 from Ch. 120, par. 441-45
33 35 ILCS 120/2-50 from Ch. 120, par. 441-50
34 35 ILCS 120/2-55 from Ch. 120, par. 441-55
-1083- LRB9000671KDdvA
1 35 ILCS 120/2-60 from Ch. 120, par. 441-60
2 35 ILCS 120/2-65 from Ch. 120, par. 441-65
3 35 ILCS 120/2-70
4 35 ILCS 120/2a from Ch. 120, par. 441a
5 35 ILCS 120/2b from Ch. 120, par. 441b
6 35 ILCS 120/2c from Ch. 120, par. 441c
7 35 ILCS 120/2d from Ch. 120, par. 441d
8 35 ILCS 120/2e from Ch. 120, par. 441e
9 35 ILCS 120/2f from Ch. 120, par. 441f
10 35 ILCS 120/2g from Ch. 120, par. 441g
11 35 ILCS 120/2h from Ch. 120, par. 441h
12 35 ILCS 120/2i from Ch. 120, par. 441i
13 35 ILCS 120/3 from Ch. 120, par. 442
14 35 ILCS 120/4 from Ch. 120, par. 443
15 35 ILCS 120/5 from Ch. 120, par. 444
16 35 ILCS 120/5a from Ch. 120, par. 444a
17 35 ILCS 120/5b from Ch. 120, par. 444b
18 35 ILCS 120/5c from Ch. 120, par. 444c
19 35 ILCS 120/5d from Ch. 120, par. 444d
20 35 ILCS 120/5e from Ch. 120, par. 444e
21 35 ILCS 120/5f from Ch. 120, par. 444f
22 35 ILCS 120/5g from Ch. 120, par. 444g
23 35 ILCS 120/5i from Ch. 120, par. 444i
24 35 ILCS 120/5j from Ch. 120, par. 444j
25 35 ILCS 120/5k from Ch. 120, par. 444k
26 35 ILCS 120/5l from Ch. 120, par. 444l
27 35 ILCS 120/6 from Ch. 120, par. 445
28 35 ILCS 120/6a from Ch. 120, par. 445a
29 35 ILCS 120/6b from Ch. 120, par. 445b
30 35 ILCS 120/6c from Ch. 120, par. 445c
31 35 ILCS 120/7 from Ch. 120, par. 446
32 35 ILCS 120/8 from Ch. 120, par. 447
33 35 ILCS 120/9 from Ch. 120, par. 448
34 35 ILCS 120/10 from Ch. 120, par. 449
-1084- LRB9000671KDdvA
1 35 ILCS 120/11 from Ch. 120, par. 450
2 35 ILCS 120/11a from Ch. 120, par. 450a
3 35 ILCS 120/12 from Ch. 120, par. 451
4 35 ILCS 120/13 from Ch. 120, par. 452
5 35 ILCS 120/13.5 from Ch. 120, par. 452 1/2
6 35 ILCS 120/14 from Ch. 120, par. 453
7 35 ILCS 105/1 from Ch. 120, par. 439.1
8 35 ILCS 105/1a from Ch. 120, par. 439.1a
9 35 ILCS 105/2 from Ch. 120, par. 439.2
10 35 ILCS 105/2a from Ch. 120, par. 439.2a
11 35 ILCS 105/2a-1 from Ch. 120, par. 439.2a-1
12 35 ILCS 105/2b from Ch. 120, par. 439.2b
13 35 ILCS 105/2c from Ch. 120, par. 439.2c
14 35 ILCS 105/3 from Ch. 120, par. 439.3
15 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
16 35 ILCS 105/3-5.5
17 35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
18 35 ILCS 105/3-15 from Ch. 120, par. 439.3-15
19 35 ILCS 105/3-20 from Ch. 120, par. 439.3-20
20 35 ILCS 105/3-25 from Ch. 120, par. 439.3-25
21 35 ILCS 105/3-30 from Ch. 120, par. 439.3-30
22 35 ILCS 105/3-35 from Ch. 120, par. 439.3-35
23 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40
24 35 ILCS 105/3-45 from Ch. 120, par. 439.3-45
25 35 ILCS 105/3-50 from Ch. 120, par. 439.3-50
26 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
27 35 ILCS 105/3-60 from Ch. 120, par. 439.3-60
28 35 ILCS 105/3-65 from Ch. 120, par. 439.3-65
29 35 ILCS 105/3-70 from Ch. 120, par. 439.3-70
30 35 ILCS 105/3-75 from Ch. 120, par. 439.3-75
31 35 ILCS 105/3-80 from Ch. 120, par. 439.3-80
32 35 ILCS 105/3-85
33 35 ILCS 105/3-90
34 35 ILCS 105/3a from Ch. 120, par. 439.3a
-1085- LRB9000671KDdvA
1 35 ILCS 105/4 from Ch. 120, par. 439.4
2 35 ILCS 105/5 from Ch. 120, par. 439.5
3 35 ILCS 105/6 from Ch. 120, par. 439.6
4 35 ILCS 105/7 from Ch. 120, par. 439.7
5 35 ILCS 105/8 from Ch. 120, par. 439.8
6 35 ILCS 105/9 from Ch. 120, par. 439.9
7 35 ILCS 105/10 from Ch. 120, par. 439.10
8 35 ILCS 105/10a from Ch. 120, par. 439.10a
9 35 ILCS 105/11 from Ch. 120, par. 439.11
10 35 ILCS 105/12 from Ch. 120, par. 439.12
11 35 ILCS 105/12a from Ch. 120, par. 439.12a
12 35 ILCS 105/12b from Ch. 120, par. 439.12b
13 35 ILCS 105/13 from Ch. 120, par. 439.13
14 35 ILCS 105/14 from Ch. 120, par. 439.14
15 35 ILCS 105/15 from Ch. 120, par. 439.15
16 35 ILCS 105/18 from Ch. 120, par. 439.18
17 35 ILCS 105/19 from Ch. 120, par. 439.19
18 35 ILCS 105/20 from Ch. 120, par. 439.20
19 35 ILCS 105/21 from Ch. 120, par. 439.21
20 35 ILCS 105/22 from Ch. 120, par. 439.22
21 35 ILCS 115/1 from Ch. 120, par. 439.101
22 35 ILCS 115/2 from Ch. 120, par. 439.102
23 35 ILCS 115/2a from Ch. 120, par. 439.102a
24 35 ILCS 115/2b from Ch. 120, par. 439.102b
25 35 ILCS 115/2c from Ch. 120, par. 439.102c
26 35 ILCS 115/3 from Ch. 120, par. 439.103
27 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
28 35 ILCS 115/3-5.5
29 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
30 35 ILCS 115/3-15 from Ch. 120, par. 439.103-15
31 35 ILCS 115/3-20 from Ch. 120, par. 439.103-20
32 35 ILCS 115/3-25 from Ch. 120, par. 439.103-25
33 35 ILCS 115/3-30 from Ch. 120, par. 439.103-30
34 35 ILCS 115/3-35 from Ch. 120, par. 439.103-35
-1086- LRB9000671KDdvA
1 35 ILCS 115/3-40 from Ch. 120, par. 439.103-40
2 35 ILCS 115/3-45 from Ch. 120, par. 439.103-45
3 35 ILCS 115/3-50 from Ch. 120, par. 439.103-50
4 35 ILCS 115/3-55
5 35 ILCS 115/4 from Ch. 120, par. 439.104
6 35 ILCS 115/5 from Ch. 120, par. 439.105
7 35 ILCS 115/6 from Ch. 120, par. 439.106
8 35 ILCS 115/7 from Ch. 120, par. 439.107
9 35 ILCS 115/8 from Ch. 120, par. 439.108
10 35 ILCS 115/9 from Ch. 120, par. 439.109
11 35 ILCS 115/10a from Ch. 120, par. 439.110a
12 35 ILCS 115/11 from Ch. 120, par. 439.111
13 35 ILCS 115/12 from Ch. 120, par. 439.112
14 35 ILCS 115/13 from Ch. 120, par. 439.113
15 35 ILCS 115/15 from Ch. 120, par. 439.115
16 35 ILCS 115/16 from Ch. 120, par. 439.116
17 35 ILCS 115/17 from Ch. 120, par. 439.117
18 35 ILCS 115/18 from Ch. 120, par. 439.118
19 35 ILCS 115/19 from Ch. 120, par. 439.119
20 35 ILCS 115/20 from Ch. 120, par. 439.120
21 35 ILCS 115/20a from Ch. 120, par. 439.120a
22 35 ILCS 115/21 from Ch. 120, par. 439.121
23 35 ILCS 110/1 from Ch. 120, par. 439.31
24 35 ILCS 110/2 from Ch. 120, par. 439.32
25 35 ILCS 110/2a from Ch. 120, par. 439.32a
26 35 ILCS 110/2b from Ch. 120, par. 439.32b
27 35 ILCS 110/3 from Ch. 120, par. 439.33
28 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
29 35 ILCS 110/3-5.5
30 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
31 35 ILCS 110/3-15 from Ch. 120, par. 439.33-15
32 35 ILCS 110/3-20 from Ch. 120, par. 439.33-20
33 35 ILCS 110/3-25 from Ch. 120, par. 439.33-25
34 35 ILCS 110/3-30 from Ch. 120, par. 439.33-30
-1087- LRB9000671KDdvA
1 35 ILCS 110/3-35 from Ch. 120, par. 439.33-35
2 35 ILCS 110/3-40 from Ch. 120, par. 439.33-40
3 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
4 35 ILCS 110/3-50 from Ch. 120, par. 439.33-50
5 35 ILCS 110/3-55 from Ch. 120, par. 439.33-55
6 35 ILCS 110/3-60 from Ch. 120, par. 439.33-60
7 35 ILCS 110/3-65 from Ch. 120, par. 439.33-65
8 35 ILCS 110/3-70
9 35 ILCS 110/3-75
10 35 ILCS 110/3a from Ch. 120, par. 439.33a
11 35 ILCS 110/3c from Ch. 120, par. 439.33c
12 35 ILCS 110/3d from Ch. 120, par. 439.33d
13 35 ILCS 110/4 from Ch. 120, par. 439.34
14 35 ILCS 110/5 from Ch. 120, par. 439.35
15 35 ILCS 110/6 from Ch. 120, par. 439.36
16 35 ILCS 110/7 from Ch. 120, par. 439.37
17 35 ILCS 110/7a from Ch. 120, par. 439.37a
18 35 ILCS 110/8 from Ch. 120, par. 439.38
19 35 ILCS 110/9 from Ch. 120, par. 439.39
20 35 ILCS 110/10 from Ch. 120, par. 439.40
21 35 ILCS 110/10a from Ch. 120, par. 439.40a
22 35 ILCS 110/11 from Ch. 120, par. 439.41
23 35 ILCS 110/12 from Ch. 120, par. 439.42
24 35 ILCS 110/13 from Ch. 120, par. 439.43
25 35 ILCS 110/14 from Ch. 120, par. 439.44
26 35 ILCS 110/15 from Ch. 120, par. 439.45
27 35 ILCS 110/16 from Ch. 120, par. 439.46
28 35 ILCS 110/17 from Ch. 120, par. 439.47
29 35 ILCS 110/18 from Ch. 120, par. 439.48
30 35 ILCS 110/19 from Ch. 120, par. 439.49
31 35 ILCS 110/20 from Ch. 120, par. 439.50
32 35 ILCS 110/20a from Ch. 120, par. 439.50a
33 35 ILCS 110/21 from Ch. 120, par. 439.51