State of Illinois
92nd General Assembly
Legislation

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92_HB0540

 
                                               LRB9206191SMdv

 1        AN ACT in relation to taxation.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The State Finance Act is amended by  changing
 5    Sections 6z-18 and 6z-20 as follows:

 6        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 7        Sec.  6z-18.   A portion of the money paid into the Local
 8    Government Tax Fund from sales of food for human  consumption
 9    which  is  to  be  consumed off the premises where it is sold
10    (other than alcoholic beverages, soft drinks and  food  which
11    has been prepared for immediate consumption) and prescription
12    and  nonprescription medicines, drugs, medical appliances and
13    insulin, urine testing materials, syringes and  needles  used
14    by  diabetics,  which  occurred  in  municipalities, shall be
15    distributed to each municipality based upon the  sales  which
16    occurred  in  that  municipality.   The  remainder  shall  be
17    distributed  to  each  county  based  upon  the  sales  which
18    occurred in the unincorporated area of that county.
19        A portion of the money paid into the Local Government Tax
20    Fund from the 6.25% general use tax rate on the selling price
21    of  tangible  personal  property  which  is purchased outside
22    Illinois at retail from a retailer and  which  is  titled  or
23    registered  by any agency of this State's government shall be
24    distributed to municipalities as provided in this  paragraph.
25    Each  municipality  shall  receive the amount attributable to
26    sales  for  which   Illinois   addresses   for   titling   or
27    registration   purposes   are   given   as   being   in  such
28    municipality.  The remainder of the money paid into the Local
29    Government Tax Fund from such sales shall be  distributed  to
30    counties.   Each county shall receive the amount attributable
31    to  sales  for  which  Illinois  addresses  for  titling   or
 
                            -2-                LRB9206191SMdv
 1    registration  purposes  are  given  as  being  located in the
 2    unincorporated area of such county.
 3        A portion of the money paid into the Local Government Tax
 4    Fund from the 6.25% general rate (and, beginning July 1, 2000
 5    and through December 31, 2000, the 1.25% rate on  motor  fuel
 6    and  gasohol, and, beginning August 1 and through August 8 of
 7    2001 and each year thereafter,  the  1.25%  rate  on  "school
 8    supplies"  as  defined  in  Section  2-10  of  the Retailers'
 9    Occupation Tax Act) on sales subject to  taxation  under  the
10    Retailers'  Occupation Tax Act and the Service Occupation Tax
11    Act, which occurred in municipalities, shall  be  distributed
12    to  each municipality, based upon the sales which occurred in
13    that municipality. The remainder shall be distributed to each
14    county,  based  upon  the  sales  which   occurred   in   the
15    unincorporated area of such county.
16        For  the  purpose  of determining allocation to the local
17    government unit, a retail sale by a producer of coal or other
18    mineral mined in Illinois is a sale at retail  at  the  place
19    where  the  coal  or  other  mineral  mined  in  Illinois  is
20    extracted  from  the earth.  This paragraph does not apply to
21    coal or other mineral when it is delivered or shipped by  the
22    seller  to  the purchaser at a point outside Illinois so that
23    the sale is exempt under the United States Constitution as  a
24    sale in interstate or foreign commerce.
25        Whenever the Department determines that a refund of money
26    paid  into  the Local Government Tax Fund should be made to a
27    claimant  instead  of  issuing  a  credit   memorandum,   the
28    Department  shall  notify  the  State  Comptroller, who shall
29    cause the order to be drawn for the amount specified, and  to
30    the  person  named, in such notification from the Department.
31    Such refund shall be paid by the State Treasurer out  of  the
32    Local Government Tax Fund.
33        On  or  before  the  25th day of each calendar month, the
34    Department shall prepare and certify to the  Comptroller  the
 
                            -3-                LRB9206191SMdv
 1    disbursement  of stated sums of money to named municipalities
 2    and counties, the municipalities and  counties  to  be  those
 3    entitled  to  distribution  of taxes or penalties paid to the
 4    Department during the second preceding  calendar  month.  The
 5    amount to be paid to each municipality or county shall be the
 6    amount  (not including credit memoranda) collected during the
 7    second preceding calendar month by the  Department  and  paid
 8    into  the  Local  Government  Tax  Fund,  plus  an amount the
 9    Department determines is  necessary  to  offset  any  amounts
10    which  were  erroneously paid to a different taxing body, and
11    not including an amount equal to the amount of  refunds  made
12    during the second preceding calendar month by the Department,
13    and  not including any amount which the Department determines
14    is necessary to offset any amounts which  are  payable  to  a
15    different  taxing  body  but  were  erroneously  paid  to the
16    municipality or county.  Within 10 days after receipt, by the
17    Comptroller,  of  the  disbursement  certification   to   the
18    municipalities and counties,  provided for in this Section to
19    be   given   to   the  Comptroller  by  the  Department,  the
20    Comptroller shall cause  the  orders  to  be  drawn  for  the
21    respective   amounts   in   accordance  with  the  directions
22    contained in such certification.
23        When certifying the amount of monthly disbursement  to  a
24    municipality  or  county  under  this Section, the Department
25    shall increase or decrease that amount by an amount necessary
26    to offset any misallocation of  previous  disbursements.  The
27    offset  amount  shall  be  the  amount  erroneously disbursed
28    within the 6 months preceding the  time  a  misallocation  is
29    discovered.
30        The  provisions  directing  the  distributions  from  the
31    special  fund  in  the  State  Treasury  provided for in this
32    Section  shall  constitute  an  irrevocable  and   continuing
33    appropriation  of  all  amounts as provided herein. The State
34    Treasurer and State Comptroller are hereby authorized to make
 
                            -4-                LRB9206191SMdv
 1    distributions as provided in this Section.
 2        In construing any development, redevelopment, annexation,
 3    preannexation or other lawful agreement in  effect  prior  to
 4    September 1, 1990, which describes or refers to receipts from
 5    a  county  or municipal retailers' occupation tax, use tax or
 6    service occupation tax which  now  cannot  be  imposed,  such
 7    description  or  reference  shall  be  deemed  to include the
 8    replacement revenue for  such  abolished  taxes,  distributed
 9    from the Local Government Tax Fund.
10    (Source:  P.A.  90-491,  eff.  1-1-98;  91-51,  eff. 6-30-99;
11    91-872, eff. 7-1-00.)

12        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
13        Sec. 6z-20. Of the money received from the 6.25%  general
14    rate  (and,  beginning  July 1, 2000 and through December 31,
15    2000,  the  1.25%  rate  on  motor  fuel  and  gasohol,  and,
16    beginning August 1 and through August 8 of 2001 and each year
17    thereafter, the 1.25% rate on "school supplies" as defined in
18    Section 2-10 of the Retailers' Occupation Tax Act)  on  sales
19    subject  to  taxation under the Retailers' Occupation Tax Act
20    and Service Occupation Tax Act and paid into the  County  and
21    Mass  Transit  District  Fund,  distribution  to the Regional
22    Transportation  Authority  tax  fund,  created  pursuant   to
23    Section  4.03  of  the Regional Transportation Authority Act,
24    for deposit therein shall be made based upon the retail sales
25    occurring in a county having more than 3,000,000 inhabitants.
26    The remainder shall be  distributed  to  each  county  having
27    3,000,000  or  fewer  inhabitants based upon the retail sales
28    occurring in each such county.
29        For the purpose of determining allocation  to  the  local
30    government unit, a retail sale by a producer of coal or other
31    mineral  mined  in  Illinois is a sale at retail at the place
32    where  the  coal  or  other  mineral  mined  in  Illinois  is
33    extracted from the earth.  This paragraph does not  apply  to
 
                            -5-                LRB9206191SMdv
 1    coal  or other mineral when it is delivered or shipped by the
 2    seller to the purchaser at a point outside Illinois  so  that
 3    the  sale is exempt under the United States Constitution as a
 4    sale in interstate or foreign commerce.
 5        Of the money received from the 6.25% general use tax rate
 6    on tangible personal  property  which  is  purchased  outside
 7    Illinois  at  retail  from  a retailer and which is titled or
 8    registered by any agency of this State's government and  paid
 9    into  the  County  and Mass Transit District Fund, the amount
10    for which Illinois  addresses  for  titling  or  registration
11    purposes  are  given as being in each county having more than
12    3,000,000 inhabitants shall be distributed into the  Regional
13    Transportation   Authority  tax  fund,  created  pursuant  to
14    Section 4.03 of the Regional  Transportation  Authority  Act.
15    The  remainder  of  the  money  paid from such sales shall be
16    distributed to each county based on sales for which  Illinois
17    addresses  for  titling or registration purposes are given as
18    being located  in  the  county.   Any  money  paid  into  the
19    Regional  Transportation  Authority  Occupation  and  Use Tax
20    Replacement Fund from the County and  Mass  Transit  District
21    Fund  prior  to  January 14, 1991, which has not been paid to
22    the Authority prior to that date, shall be transferred to the
23    Regional Transportation Authority tax fund.
24        Whenever the Department determines that a refund of money
25    paid into the County and Mass Transit District Fund should be
26    made to a claimant instead of issuing  a  credit  memorandum,
27    the  Department shall notify the State Comptroller, who shall
28    cause the order to be drawn for the amount specified, and  to
29    the  person  named, in such notification from the Department.
30    Such refund shall be paid by the State Treasurer out  of  the
31    County and Mass Transit District Fund.
32        On  or  before  the  25th day of each calendar month, the
33    Department shall prepare and certify to the  Comptroller  the
34    disbursement   of  stated  sums  of  money  to  the  Regional
 
                            -6-                LRB9206191SMdv
 1    Transportation Authority and to named counties, the  counties
 2    to   be   those  entitled  to  distribution,  as  hereinabove
 3    provided, of taxes or penalties paid to the Department during
 4    the second preceding calendar month.  The amount to  be  paid
 5    to  the  Regional  Transportation  Authority  and each county
 6    having 3,000,000 or fewer inhabitants  shall  be  the  amount
 7    (not  including credit memoranda) collected during the second
 8    preceding calendar month by the Department and paid into  the
 9    County  and  Mass  Transit  District Fund, plus an amount the
10    Department determines is  necessary  to  offset  any  amounts
11    which  were  erroneously paid to a different taxing body, and
12    not including an amount equal to the amount of  refunds  made
13    during the second preceding calendar month by the Department,
14    and  not including any amount which the Department determines
15    is necessary to offset any amounts which were  payable  to  a
16    different  taxing  body  but  were  erroneously  paid  to the
17    Regional Transportation Authority or county.  Within 10  days
18    after  receipt,  by  the  Comptroller,  of  the  disbursement
19    certification  to  the  Regional Transportation Authority and
20    counties, provided for in this Section to  be  given  to  the
21    Comptroller  by  the  Department, the Comptroller shall cause
22    the  orders  to  be  drawn  for  the  respective  amounts  in
23    accordance   with   the   directions   contained   in    such
24    certification.
25        When  certifying  the amount of a monthly disbursement to
26    the Regional Transportation Authority or to  a  county  under
27    this  Section, the Department shall increase or decrease that
28    amount by an amount necessary to offset any misallocation  of
29    previous  disbursements.   The  offset  amount  shall  be the
30    amount erroneously disbursed within the  6  months  preceding
31    the time a misallocation is discovered.
32        The  provisions  directing  the  distributions  from  the
33    special  fund  in  the  State  Treasury  provided for in this
34    Section and from the Regional  Transportation  Authority  tax
 
                            -7-                LRB9206191SMdv
 1    fund  created  by Section 4.03 of the Regional Transportation
 2    Authority Act shall constitute an irrevocable and  continuing
 3    appropriation  of  all  amounts as provided herein. The State
 4    Treasurer and State Comptroller are hereby authorized to make
 5    distributions as provided in this Section.
 6        In construing any development, redevelopment, annexation,
 7    preannexation or other lawful agreement in  effect  prior  to
 8    September 1, 1990, which describes or refers to receipts from
 9    a  county  or municipal retailers' occupation tax, use tax or
10    service occupation tax which  now  cannot  be  imposed,  such
11    description  or  reference  shall  be  deemed  to include the
12    replacement revenue for  such  abolished  taxes,  distributed
13    from  the  County  and  Mass  Transit  District Fund or Local
14    Government Distributive Fund, as the case may be.
15    (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)

16        Section 10.  The Use  Tax  Act  is  amended  by  changing
17    Sections 3-10 and 9 as follows:

18        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
19        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
20    this Section, the tax imposed by this Act is at the  rate  of
21    6.25%  of  either the selling price or the fair market value,
22    if any, of the tangible  personal  property.   In  all  cases
23    where  property  functionally used or consumed is the same as
24    the property that was purchased at retail, then  the  tax  is
25    imposed  on  the selling price of the property.  In all cases
26    where property functionally used or consumed is a  by-product
27    or  waste  product  that  has  been refined, manufactured, or
28    produced from property purchased at retail, then the  tax  is
29    imposed on the lower of the fair market value, if any, of the
30    specific  property  so  used  in this State or on the selling
31    price of the property purchased at retail.  For  purposes  of
32    this  Section  "fair  market  value" means the price at which
 
                            -8-                LRB9206191SMdv
 1    property would change hands between a  willing  buyer  and  a
 2    willing  seller, neither being under any compulsion to buy or
 3    sell and both having reasonable  knowledge  of  the  relevant
 4    facts. The fair market value shall be established by Illinois
 5    sales   by   the  taxpayer  of  the  same  property  as  that
 6    functionally used or consumed, or if there are no such  sales
 7    by  the  taxpayer,  then  comparable  sales  or  purchases of
 8    property of like kind and character in Illinois.
 9        Beginning on July 1, 2000 and through December 31,  2000,
10    with  respect to motor fuel, as defined in Section 1.1 of the
11    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
12    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
13        Beginning  on  August  1 and through August 8 of 2001 and
14    each year thereafter, with respect to  "school  supplies"  as
15    defined in Section 2-10 of the Retailers' Occupation Tax Act,
16    the  tax is imposed at the rate of 1.25%. The changes made by
17    this amendatory Act of the 92nd General Assembly  are  exempt
18    from the provisions of Section 3-90.
19        With  respect  to  gasohol,  the  tax imposed by this Act
20    applies to 70% of the proceeds of  sales  made  on  or  after
21    January  1, 1990, and before July 1, 2003, and to 100% of the
22    proceeds of sales made thereafter.
23        With respect to food for human consumption that is to  be
24    consumed  off  the  premises  where  it  is  sold (other than
25    alcoholic beverages, soft drinks,  and  food  that  has  been
26    prepared  for  immediate  consumption)  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,  the  tax is imposed at the rate of 1%. For the purposes
32    of this Section, the term "soft drinks" means  any  complete,
33    finished,    ready-to-use,   non-alcoholic   drink,   whether
34    carbonated or not, including but not limited to  soda  water,
 
                            -9-                LRB9206191SMdv
 1    cola, fruit juice, vegetable juice, carbonated water, and all
 2    other  preparations commonly known as soft drinks of whatever
 3    kind or description that  are  contained  in  any  closed  or
 4    sealed bottle, can, carton, or container, regardless of size.
 5    "Soft  drinks"  does  not include coffee, tea, non-carbonated
 6    water, infant formula, milk or milk products  as  defined  in
 7    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 8    containing 50% or more natural fruit or vegetable juice.
 9        Notwithstanding  any  other provisions of this Act, "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  purchased  at  retail from a
16    retailer  is  acquired  outside  Illinois  and  used  outside
17    Illinois before being brought to Illinois for use here and is
18    taxable under this Act, the "selling price" on which the  tax
19    is  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    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
23    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

24        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
25        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
26    aircraft, and trailers that are  required  to  be  registered
27    with  an  agency  of  this  State,  each retailer required or
28    authorized to collect the tax imposed by this Act  shall  pay
29    to the Department the amount of such tax (except as otherwise
30    provided)  at the time when he is required to file his return
31    for the period during which such tax was  collected,  less  a
32    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
33    after January 1, 1990, or $5 per calendar year, whichever  is
 
                            -10-               LRB9206191SMdv
 1    greater,  which  is  allowed  to  reimburse  the retailer for
 2    expenses incurred in collecting  the  tax,  keeping  records,
 3    preparing and filing returns, remitting the tax and supplying
 4    data  to the Department on request.  In the case of retailers
 5    who report and pay the tax on a  transaction  by  transaction
 6    basis,  as  provided  in this Section, such discount shall be
 7    taken with each such tax  remittance  instead  of  when  such
 8    retailer  files  his  periodic  return.   A retailer need not
 9    remit that part of any tax collected by  him  to  the  extent
10    that  he  is required to remit and does remit the tax imposed
11    by the Retailers' Occupation Tax Act,  with  respect  to  the
12    sale of the same property.
13        Where  such  tangible  personal  property is sold under a
14    conditional sales contract, or under any other form  of  sale
15    wherein  the payment of the principal sum, or a part thereof,
16    is extended beyond the close of  the  period  for  which  the
17    return  is filed, the retailer, in collecting the tax (except
18    as to motor vehicles, watercraft, aircraft, and trailers that
19    are required to be registered with an agency of this  State),
20    may  collect  for  each  tax  return  period,  only  the  tax
21    applicable  to  that  part  of  the  selling  price  actually
22    received during such tax return period.
23        Except  as  provided  in  this  Section, on or before the
24    twentieth day of each calendar  month,  such  retailer  shall
25    file  a return for the preceding calendar month.  Such return
26    shall be filed on forms  prescribed  by  the  Department  and
27    shall   furnish   such  information  as  the  Department  may
28    reasonably require.
29        The Department may require  returns  to  be  filed  on  a
30    quarterly  basis.  If so required, a return for each calendar
31    quarter shall be filed on or before the twentieth day of  the
32    calendar  month  following  the end of such calendar quarter.
33    The taxpayer shall also file a return with the Department for
34    each of the first two months of each calendar quarter, on  or
 
                            -11-               LRB9206191SMdv
 1    before  the  twentieth  day  of the following calendar month,
 2    stating:
 3             1.  The name of the seller;
 4             2.  The address of the principal place  of  business
 5        from which he engages in the business of selling tangible
 6        personal property at retail in this State;
 7             3.  The total amount of taxable receipts received by
 8        him  during  the  preceding  calendar month from sales of
 9        tangible personal property by him during  such  preceding
10        calendar  month,  including receipts from charge and time
11        sales, but less all deductions allowed by law;
12             4.  The amount of credit provided in Section  2d  of
13        this Act;
14             5.  The amount of tax due;
15             5-5.  The signature of the taxpayer; and
16             6.  Such   other   reasonable   information  as  the
17        Department may require.
18        If a taxpayer fails to sign a return within 30 days after
19    the proper notice and demand for signature by the Department,
20    the return shall be considered valid and any amount shown  to
21    be due on the return shall be deemed assessed.
22        Beginning  October 1, 1993, a taxpayer who has an average
23    monthly tax liability of $150,000  or  more  shall  make  all
24    payments  required  by  rules of the Department by electronic
25    funds transfer. Beginning October 1, 1994, a taxpayer who has
26    an average monthly tax liability of $100,000  or  more  shall
27    make  all  payments  required  by  rules of the Department by
28    electronic funds  transfer.  Beginning  October  1,  1995,  a
29    taxpayer  who has an average monthly tax liability of $50,000
30    or more shall make all payments  required  by  rules  of  the
31    Department by electronic funds transfer. Beginning October 1,
32    2000,  a taxpayer who has an annual tax liability of $200,000
33    or more shall make all payments  required  by  rules  of  the
34    Department  by  electronic  funds transfer.  The term "annual
 
                            -12-               LRB9206191SMdv
 1    tax liability" shall be the sum of the taxpayer's liabilities
 2    under  this  Act,  and  under  all  other  State  and   local
 3    occupation  and  use tax laws administered by the Department,
 4    for  the  immediately  preceding  calendar  year.  The   term
 5    "average   monthly  tax  liability"  means  the  sum  of  the
 6    taxpayer's liabilities under this Act, and  under  all  other
 7    State  and  local occupation and use tax laws administered by
 8    the Department, for the immediately preceding  calendar  year
 9    divided by 12.
10        Before  August  1  of  each  year  beginning in 1993, the
11    Department  shall  notify  all  taxpayers  required  to  make
12    payments by electronic funds transfer. All taxpayers required
13    to make payments by  electronic  funds  transfer  shall  make
14    those payments for a minimum of one year beginning on October
15    1.
16        Any  taxpayer not required to make payments by electronic
17    funds transfer may make payments by electronic funds transfer
18    with the permission of the Department.
19        All taxpayers required  to  make  payment  by  electronic
20    funds  transfer  and  any taxpayers authorized to voluntarily
21    make payments by electronic funds transfer shall  make  those
22    payments in the manner authorized by the Department.
23        The Department shall adopt such rules as are necessary to
24    effectuate  a  program  of  electronic funds transfer and the
25    requirements of this Section.
26        Before October 1, 2000, if the taxpayer's average monthly
27    tax  liability  to  the  Department  under  this   Act,   the
28    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
29    Act, the Service Use Tax Act was $10,000 or more  during  the
30    preceding  4  complete  calendar  quarters,  he  shall file a
31    return with the Department each month by the 20th day of  the
32    month   next  following  the  month  during  which  such  tax
33    liability  is  incurred  and  shall  make  payments  to   the
34    Department  on  or before the 7th, 15th, 22nd and last day of
 
                            -13-               LRB9206191SMdv
 1    the month during which such liability  is  incurred.  On  and
 2    after  October 1, 2000, if the taxpayer's average monthly tax
 3    liability to the Department under this  Act,  the  Retailers'
 4    Occupation  Tax  Act, the Service Occupation Tax Act, and the
 5    Service Use Tax Act was $20,000 or more during the  preceding
 6    4 complete calendar quarters, he shall file a return with the
 7    Department  each  month  by  the  20th  day of the month next
 8    following the  month  during  which  such  tax  liability  is
 9    incurred  and  shall  make  payment  to  the Department on or
10    before the 7th, 15th, 22nd and last day of the  month  during
11    which  such  liability is incurred. If the month during which
12    such tax liability is incurred  began  prior  to  January  1,
13    1985,  each payment shall be in an amount equal to 1/4 of the
14    taxpayer's actual liability for the month or an amount set by
15    the Department not to  exceed  1/4  of  the  average  monthly
16    liability of the taxpayer to the Department for the preceding
17    4  complete calendar quarters (excluding the month of highest
18    liability and the month of lowest liability in such 4 quarter
19    period).  If the month during which  such  tax  liability  is
20    incurred  begins  on  or  after January 1, 1985, and prior to
21    January 1, 1987, each payment shall be in an amount equal  to
22    22.5%  of  the  taxpayer's  actual liability for the month or
23    27.5% of the taxpayer's liability for the same calendar month
24    of the preceding year.  If the month during  which  such  tax
25    liability is incurred begins on or after January 1, 1987, and
26    prior  to January 1, 1988, each payment shall be in an amount
27    equal to 22.5% of the taxpayer's  actual  liability  for  the
28    month  or  26.25%  of  the  taxpayer's liability for the same
29    calendar month of the preceding year.  If  the  month  during
30    which  such  tax  liability  is  incurred  begins on or after
31    January 1, 1988, and prior to January 1, 1989, or  begins  on
32    or  after January 1, 1996, each payment shall be in an amount
33    equal to 22.5% of the taxpayer's  actual  liability  for  the
34    month  or  25%  of  the  taxpayer's  liability  for  the same
 
                            -14-               LRB9206191SMdv
 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, 1989, and prior to January 1, 1996,  each  payment
 4    shall be in an amount equal to 22.5% of the taxpayer's actual
 5    liability  for  the  month or 25% of the taxpayer's liability
 6    for the same calendar month of the preceding year or 100%  of
 7    the  taxpayer's  actual  liability  for  the  quarter monthly
 8    reporting  period.   The  amount  of  such  quarter   monthly
 9    payments shall be credited against the final tax liability of
10    the  taxpayer's  return  for  that  month.  Before October 1,
11    2000, once applicable,  the  requirement  of  the  making  of
12    quarter  monthly  payments  to  the Department shall continue
13    until  such  taxpayer's  average  monthly  liability  to  the
14    Department during the preceding 4 complete calendar  quarters
15    (excluding  the  month  of highest liability and the month of
16    lowest  liability)  is  less  than  $9,000,  or  until   such
17    taxpayer's  average  monthly  liability  to the Department as
18    computed  for  each  calendar  quarter  of  the  4  preceding
19    complete  calendar  quarter  period  is  less  than  $10,000.
20    However, if  a  taxpayer  can  show  the  Department  that  a
21    substantial  change  in  the taxpayer's business has occurred
22    which causes the taxpayer  to  anticipate  that  his  average
23    monthly  tax  liability for the reasonably foreseeable future
24    will fall below the $10,000 threshold stated above, then such
25    taxpayer may petition  the  Department  for  change  in  such
26    taxpayer's  reporting  status.  On and after October 1, 2000,
27    once applicable, the requirement of  the  making  of  quarter
28    monthly  payments to the Department shall continue until such
29    taxpayer's average monthly liability to the Department during
30    the preceding 4 complete  calendar  quarters  (excluding  the
31    month of highest liability and the month of lowest liability)
32    is less than $19,000 or until such taxpayer's average monthly
33    liability  to  the  Department  as computed for each calendar
34    quarter of the 4 preceding complete calendar  quarter  period
 
                            -15-               LRB9206191SMdv
 1    is  less  than  $20,000.  However, if a taxpayer can show the
 2    Department  that  a  substantial  change  in  the  taxpayer's
 3    business has occurred which causes the taxpayer to anticipate
 4    that his average monthly tax  liability  for  the  reasonably
 5    foreseeable  future  will  fall  below  the $20,000 threshold
 6    stated above, then such taxpayer may petition the  Department
 7    for  a  change  in  such  taxpayer's  reporting  status.  The
 8    Department shall  change  such  taxpayer's  reporting  status
 9    unless  it  finds  that such change is seasonal in nature and
10    not likely to be long  term.  If  any  such  quarter  monthly
11    payment  is not paid at the time or in the amount required by
12    this Section, then the taxpayer shall be liable for penalties
13    and interest on the difference between the minimum amount due
14    and the amount of such quarter monthly payment  actually  and
15    timely  paid,  except  insofar as the taxpayer has previously
16    made payments for that month to the Department in  excess  of
17    the  minimum  payments  previously  due  as  provided in this
18    Section.  The Department  shall  make  reasonable  rules  and
19    regulations  to govern the quarter monthly payment amount and
20    quarter monthly payment dates for taxpayers who file on other
21    than a calendar monthly basis.
22        If any such payment provided for in this Section  exceeds
23    the  taxpayer's  liabilities  under  this Act, the Retailers'
24    Occupation Tax Act, the Service Occupation Tax  Act  and  the
25    Service  Use Tax Act, as shown by an original monthly return,
26    the  Department  shall  issue  to  the  taxpayer   a   credit
27    memorandum  no  later than 30 days after the date of payment,
28    which memorandum may be submitted  by  the  taxpayer  to  the
29    Department  in  payment  of  tax liability subsequently to be
30    remitted by the taxpayer to the Department or be assigned  by
31    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
32    Retailers' Occupation Tax Act, the Service Occupation Tax Act
33    or the Service Use Tax Act,  in  accordance  with  reasonable
34    rules  and  regulations  to  be prescribed by the Department,
 
                            -16-               LRB9206191SMdv
 1    except that if such excess payment is shown  on  an  original
 2    monthly return and is made after December 31, 1986, no credit
 3    memorandum shall be issued, unless requested by the taxpayer.
 4    If  no  such  request  is  made, the taxpayer may credit such
 5    excess payment  against  tax  liability  subsequently  to  be
 6    remitted  by  the  taxpayer to the Department under this Act,
 7    the Retailers' Occupation Tax Act, the Service Occupation Tax
 8    Act or the Service Use Tax Act, in accordance with reasonable
 9    rules and regulations prescribed by the Department.   If  the
10    Department  subsequently  determines  that all or any part of
11    the credit taken was not actually due to  the  taxpayer,  the
12    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
13    by 2.1% or 1.75% of the difference between the  credit  taken
14    and  that  actually due, and the taxpayer shall be liable for
15    penalties and interest on such difference.
16        If the retailer is otherwise required to file  a  monthly
17    return and if the retailer's average monthly tax liability to
18    the  Department  does  not  exceed  $200,  the Department may
19    authorize his returns to be filed on a quarter annual  basis,
20    with  the  return for January, February, and March of a given
21    year being due by April 20 of such year; with the return  for
22    April,  May  and June of a given year being due by July 20 of
23    such year; with the return for July, August and September  of
24    a  given  year being due by October 20 of such year, and with
25    the return for October, November and December of a given year
26    being due by January 20 of the following year.
27        If the retailer is otherwise required to file  a  monthly
28    or quarterly return and if the retailer's average monthly tax
29    liability   to  the  Department  does  not  exceed  $50,  the
30    Department may authorize his returns to be filed on an annual
31    basis, with the return for a given year being due by  January
32    20 of the following year.
33        Such  quarter  annual  and annual returns, as to form and
34    substance, shall be  subject  to  the  same  requirements  as
 
                            -17-               LRB9206191SMdv
 1    monthly returns.
 2        Notwithstanding   any   other   provision   in  this  Act
 3    concerning the time within which  a  retailer  may  file  his
 4    return, in the case of any retailer who ceases to engage in a
 5    kind  of  business  which  makes  him  responsible for filing
 6    returns under this Act, such  retailer  shall  file  a  final
 7    return  under  this Act with the Department not more than one
 8    month after discontinuing such business.
 9        In addition, with respect to motor vehicles,  watercraft,
10    aircraft,  and  trailers  that  are required to be registered
11    with an agency of this State,  every  retailer  selling  this
12    kind  of  tangible  personal  property  shall  file, with the
13    Department, upon a form to be prescribed and supplied by  the
14    Department,  a separate return for each such item of tangible
15    personal property which the retailer sells, except  that  if,
16    in   the  same  transaction,  (i)  a  retailer  of  aircraft,
17    watercraft, motor vehicles or trailers  transfers  more  than
18    one aircraft, watercraft, motor vehicle or trailer to another
19    aircraft,  watercraft,  motor vehicle or trailer retailer for
20    the purpose  of  resale  or  (ii)  a  retailer  of  aircraft,
21    watercraft,  motor  vehicles, or trailers transfers more than
22    one aircraft, watercraft, motor  vehicle,  or  trailer  to  a
23    purchaser  for  use as a qualifying rolling stock as provided
24    in Section 3-55 of this Act, then that seller may report  the
25    transfer  of  all the aircraft, watercraft, motor vehicles or
26    trailers involved in that transaction to  the  Department  on
27    the  same  uniform invoice-transaction reporting return form.
28    For purposes of this Section, "watercraft" means a  Class  2,
29    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
30    the Boat Registration and Safety Act, a personal  watercraft,
31    or any boat equipped with an inboard motor.
32        The  transaction  reporting  return  in the case of motor
33    vehicles or trailers that are required to be registered  with
34    an  agency  of  this State, shall be the same document as the
 
                            -18-               LRB9206191SMdv
 1    Uniform Invoice referred to in Section 5-402 of the  Illinois
 2    Vehicle  Code  and  must  show  the  name  and address of the
 3    seller; the name and address of the purchaser; the amount  of
 4    the  selling  price  including  the  amount  allowed  by  the
 5    retailer  for  traded-in property, if any; the amount allowed
 6    by the retailer for the traded-in tangible personal property,
 7    if any, to the extent to which Section 2 of this  Act  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  retailer
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; such other information as is required in
17    Section 5-402 of the Illinois Vehicle Code,  and  such  other
18    information as the Department may reasonably require.
19        The   transaction   reporting   return  in  the  case  of
20    watercraft and aircraft must show the name and address of the
21    seller; the name and address of the purchaser; the amount  of
22    the  selling  price  including  the  amount  allowed  by  the
23    retailer  for  traded-in property, if any; the amount allowed
24    by the retailer for the traded-in tangible personal property,
25    if any, to the extent to which Section 2 of this  Act  allows
26    an exemption for the value of traded-in property; the balance
27    payable  after  deducting  such  trade-in  allowance from the
28    total selling price; the amount of tax due from the  retailer
29    with respect to such transaction; the amount of tax collected
30    from  the  purchaser  by the retailer on such transaction (or
31    satisfactory evidence that  such  tax  is  not  due  in  that
32    particular  instance, if that is claimed to be the fact); the
33    place and date of the sale, a  sufficient  identification  of
34    the   property  sold,  and  such  other  information  as  the
 
                            -19-               LRB9206191SMdv
 1    Department may reasonably require.
 2        Such transaction reporting  return  shall  be  filed  not
 3    later  than  20  days  after the date of delivery of the item
 4    that is being sold, but may be filed by the retailer  at  any
 5    time   sooner  than  that  if  he  chooses  to  do  so.   The
 6    transaction reporting return and tax remittance or  proof  of
 7    exemption  from  the  tax  that is imposed by this Act may be
 8    transmitted to the Department by way of the State agency with
 9    which, or State officer  with  whom,  the  tangible  personal
10    property   must  be  titled  or  registered  (if  titling  or
11    registration is required) if the Department and  such  agency
12    or  State officer determine that this procedure will expedite
13    the processing of applications for title or registration.
14        With each such transaction reporting return, the retailer
15    shall remit the proper amount of tax  due  (or  shall  submit
16    satisfactory evidence that the sale is not taxable if that is
17    the  case),  to  the  Department or its agents, whereupon the
18    Department shall  issue,  in  the  purchaser's  name,  a  tax
19    receipt  (or  a certificate of exemption if the Department is
20    satisfied that the particular sale is tax exempt) which  such
21    purchaser  may  submit  to  the  agency  with which, or State
22    officer with whom, he must title  or  register  the  tangible
23    personal   property   that   is   involved   (if  titling  or
24    registration is required)  in  support  of  such  purchaser's
25    application  for an Illinois certificate or other evidence of
26    title or registration to such tangible personal property.
27        No retailer's failure or refusal to remit tax under  this
28    Act  precludes  a  user,  who  has paid the proper tax to the
29    retailer, from obtaining his certificate of  title  or  other
30    evidence of title or registration (if titling or registration
31    is  required)  upon  satisfying the Department that such user
32    has paid the proper tax (if tax is due) to the retailer.  The
33    Department shall adopt appropriate rules  to  carry  out  the
34    mandate of this paragraph.
 
                            -20-               LRB9206191SMdv
 1        If  the  user who would otherwise pay tax to the retailer
 2    wants the transaction reporting return filed and the  payment
 3    of  tax  or  proof of exemption made to the Department before
 4    the retailer is willing to take these actions and  such  user
 5    has  not  paid the tax to the retailer, such user may certify
 6    to the fact of such delay by the retailer, and may (upon  the
 7    Department   being   satisfied   of   the   truth   of   such
 8    certification)  transmit  the  information  required  by  the
 9    transaction  reporting  return  and the remittance for tax or
10    proof of exemption directly to the Department and obtain  his
11    tax  receipt  or  exemption determination, in which event the
12    transaction reporting return and tax  remittance  (if  a  tax
13    payment  was required) shall be credited by the Department to
14    the  proper  retailer's  account  with  the  Department,  but
15    without the 2.1% or  1.75%  discount  provided  for  in  this
16    Section  being  allowed.  When the user pays the tax directly
17    to the Department, he shall pay the tax in  the  same  amount
18    and in the same form in which it would be remitted if the tax
19    had been remitted to the Department by the retailer.
20        Where  a  retailer  collects  the tax with respect to the
21    selling price of tangible personal property  which  he  sells
22    and  the  purchaser thereafter returns such tangible personal
23    property and the retailer refunds the selling  price  thereof
24    to  the  purchaser,  such  retailer shall also refund, to the
25    purchaser, the tax so  collected  from  the  purchaser.  When
26    filing his return for the period in which he refunds such tax
27    to  the  purchaser, the retailer may deduct the amount of the
28    tax so refunded by him to the purchaser from  any  other  use
29    tax  which  such  retailer may be required to pay or remit to
30    the Department, as shown by such return, if the amount of the
31    tax to be deducted was previously remitted to the  Department
32    by  such  retailer.   If  the  retailer  has  not  previously
33    remitted  the  amount  of  such  tax to the Department, he is
34    entitled to no deduction under this Act upon  refunding  such
 
                            -21-               LRB9206191SMdv
 1    tax to the purchaser.
 2        Any  retailer  filing  a  return under this Section shall
 3    also include (for the purpose  of  paying  tax  thereon)  the
 4    total  tax  covered  by such return upon the selling price of
 5    tangible personal property purchased by him at retail from  a
 6    retailer, but as to which the tax imposed by this Act was not
 7    collected  from  the  retailer  filing  such return, and such
 8    retailer shall remit the amount of such tax to the Department
 9    when filing such return.
10        If experience indicates such action  to  be  practicable,
11    the  Department  may  prescribe  and furnish a combination or
12    joint return which will enable retailers, who are required to
13    file  returns  hereunder  and  also  under   the   Retailers'
14    Occupation  Tax  Act,  to  furnish all the return information
15    required by both Acts on the one form.
16        Where the retailer has more than one business  registered
17    with  the  Department  under separate registration under this
18    Act, such retailer may not file each return that is due as  a
19    single  return  covering  all such registered businesses, but
20    shall  file  separate  returns  for  each   such   registered
21    business.
22        Beginning  January  1,  1990,  each  month the Department
23    shall pay into the State and Local Sales Tax Reform  Fund,  a
24    special  fund  in the State Treasury which is hereby created,
25    the net revenue realized for the preceding month from the  1%
26    tax  on  sales  of  food for human consumption which is to be
27    consumed off the  premises  where  it  is  sold  (other  than
28    alcoholic  beverages,  soft  drinks  and  food which has been
29    prepared for  immediate  consumption)  and  prescription  and
30    nonprescription  medicines,  drugs,  medical  appliances  and
31    insulin,  urine  testing materials, syringes and needles used
32    by diabetics.
33        Beginning January 1,  1990,  each  month  the  Department
34    shall  pay  into the County and Mass Transit District Fund 4%
 
                            -22-               LRB9206191SMdv
 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 August 1, 2000, each month the Department shall
15    pay into the State and Local Sales Tax Reform  Fund  100%  of
16    the  net  revenue  realized  for the preceding month from the
17    1.25% rate on the selling price of motor fuel and gasohol.
18        Each September the Department shall pay  into  the  State
19    and  Local  Sales  Tax  Reform  Fund  100% of the net revenue
20    realized for the preceding  month  from  the  1.25%  rate  on
21    "school   supplies"   as  defined  in  Section  2-10  of  the
22    Retailers' Occupation Tax Act.
23        Beginning January 1,  1990,  each  month  the  Department
24    shall  pay  into the Local Government Tax Fund 16% of the net
25    revenue realized for  the  preceding  month  from  the  6.25%
26    general  rate  on  the  selling  price  of  tangible personal
27    property which is purchased outside Illinois at retail from a
28    retailer and which is titled or registered by  an  agency  of
29    this State's government.
30        Of the remainder of the moneys received by the Department
31    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
32    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
33    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
34    into the Build Illinois Fund; provided, however, that  if  in
 
                            -23-               LRB9206191SMdv
 1    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 2    as  the case may be, of the moneys received by the Department
 3    and required to be paid into the Build Illinois Fund pursuant
 4    to Section 3 of the Retailers' Occupation Tax Act, Section  9
 5    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 6    Section  9 of the Service Occupation Tax Act, such Acts being
 7    hereinafter called the "Tax Acts" and such aggregate of  2.2%
 8    or  3.8%,  as  the  case  may be, of moneys being hereinafter
 9    called the "Tax Act Amount", and (2) the  amount  transferred
10    to the Build Illinois Fund from the State and Local Sales Tax
11    Reform  Fund  shall  be less than the Annual Specified Amount
12    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
13    Act),  an amount equal to the difference shall be immediately
14    paid into the Build Illinois Fund from other moneys  received
15    by  the  Department  pursuant  to  the  Tax Acts; and further
16    provided, that if on the last business day of any  month  the
17    sum  of  (1) the Tax Act Amount required to be deposited into
18    the Build Illinois Bond Account in the  Build  Illinois  Fund
19    during  such month and (2) the amount transferred during such
20    month to the Build Illinois Fund from  the  State  and  Local
21    Sales  Tax  Reform Fund shall have been less than 1/12 of the
22    Annual Specified Amount, an amount equal  to  the  difference
23    shall  be  immediately paid into the Build Illinois Fund from
24    other moneys received by the Department pursuant to  the  Tax
25    Acts;  and,  further  provided,  that  in  no event shall the
26    payments required  under  the  preceding  proviso  result  in
27    aggregate  payments  into the Build Illinois Fund pursuant to
28    this clause (b) for any fiscal year in excess of the  greater
29    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30    for such fiscal year; and, further provided, that the amounts
31    payable  into  the  Build Illinois Fund under this clause (b)
32    shall be payable only until such time as the aggregate amount
33    on deposit under each trust indenture securing  Bonds  issued
34    and  outstanding  pursuant  to the Build Illinois Bond Act is
 
                            -24-               LRB9206191SMdv
 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  the  Tax Acts to the Build Illinois
18    Fund; provided, however, that any amounts paid to  the  Build
19    Illinois  Fund  in  any fiscal year pursuant to this sentence
20    shall be deemed to constitute payments pursuant to clause (b)
21    of  the  preceding  sentence  and  shall  reduce  the  amount
22    otherwise payable for such fiscal year pursuant to clause (b)
23    of the  preceding  sentence.   The  moneys  received  by  the
24    Department  pursuant to this Act and required to be deposited
25    into the Build Illinois Fund are subject to the pledge, claim
26    and charge set forth in Section 12 of the Build Illinois Bond
27    Act.
28        Subject to payment of amounts  into  the  Build  Illinois
29    Fund  as  provided  in  the  preceding  paragraph  or  in any
30    amendment thereto hereafter enacted, the following  specified
31    monthly   installment   of   the   amount  requested  in  the
32    certificate of the Chairman  of  the  Metropolitan  Pier  and
33    Exposition  Authority  provided  under  Section  8.25f of the
34    State Finance Act, but not in excess of the  sums  designated
 
                            -25-               LRB9206191SMdv
 1    as  "Total Deposit", shall be deposited in the aggregate from
 2    collections under Section 9 of the Use Tax Act, Section 9  of
 3    the  Service Use Tax Act, Section 9 of the Service Occupation
 4    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 5    into  the  McCormick  Place  Expansion  Project  Fund  in the
 6    specified 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                        93,000,000
20                 2005                        97,000,000
21                 2006                       102,000,000
22                 2007                       108,000,000
23                 2008                       115,000,000
24                 2009                       120,000,000
25                 2010                       126,000,000
26                 2011                       132,000,000
27                 2012                       138,000,000
28                 2013 and                   145,000,000
29        each fiscal year
30        thereafter that bonds
31        are outstanding under
32        Section 13.2 of the
33        Metropolitan Pier and
34        Exposition Authority
 
                            -26-               LRB9206191SMdv
 1        Act, but not after fiscal year 2029.
 2        Beginning July 20, 1993 and in each month of each  fiscal
 3    year  thereafter,  one-eighth  of the amount requested in the
 4    certificate of the Chairman  of  the  Metropolitan  Pier  and
 5    Exposition  Authority  for  that fiscal year, less the amount
 6    deposited into the McCormick Place Expansion Project Fund  by
 7    the  State Treasurer in the respective month under subsection
 8    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 9    Authority  Act,  plus cumulative deficiencies in the deposits
10    required under this Section for previous  months  and  years,
11    shall be deposited into the McCormick Place Expansion Project
12    Fund,  until  the  full amount requested for the fiscal year,
13    but not in excess of the amount  specified  above  as  "Total
14    Deposit", has been deposited.
15        Subject  to  payment  of  amounts into the Build Illinois
16    Fund and the McCormick Place Expansion Project Fund  pursuant
17    to  the  preceding  paragraphs  or  in  any amendment thereto
18    hereafter enacted, each month the Department shall  pay  into
19    the Local Government Distributive Fund .4% of the net revenue
20    realized for the preceding month from the 5% general rate, or
21    .4%  of  80%  of  the  net revenue realized for the preceding
22    month from the 6.25% general rate, as the case may be, on the
23    selling price of  tangible  personal  property  which  amount
24    shall,  subject  to appropriation, be distributed as provided
25    in Section 2 of the State Revenue Sharing Act. No payments or
26    distributions pursuant to this paragraph shall be made if the
27    tax imposed  by  this  Act  on  photoprocessing  products  is
28    declared  unconstitutional,  or if the proceeds from such tax
29    are unavailable for distribution because of litigation.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund,  the  McCormick  Place  Expansion Project Fund, and the
32    Local Government Distributive Fund pursuant to the  preceding
33    paragraphs  or  in  any amendments thereto hereafter enacted,
34    beginning July 1, 1993, the Department shall each  month  pay
 
                            -27-               LRB9206191SMdv
 1    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
 2    revenue realized for  the  preceding  month  from  the  6.25%
 3    general  rate  on  the  selling  price  of  tangible personal
 4    property.
 5        Of the remainder of the moneys received by the Department
 6    pursuant to this Act, 75% thereof  shall  be  paid  into  the
 7    State Treasury and 25% shall be reserved in a special account
 8    and  used  only for the transfer to the Common School Fund as
 9    part of the monthly transfer from the General Revenue Fund in
10    accordance with Section 8a of the State Finance Act.
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  this  Act  for  the  second preceding month.
17    Beginning April 1, 2000, this transfer is no longer  required
18    and shall not be made.
19        Net  revenue  realized  for  a month shall be the revenue
20    collected by the State pursuant to this Act, less the  amount
21    paid  out  during  that  month  as  refunds  to taxpayers for
22    overpayment of liability.
23        For greater simplicity of administration,  manufacturers,
24    importers  and  wholesalers whose products are sold at retail
25    in Illinois by numerous retailers, and who wish to do so, may
26    assume the responsibility for accounting and  paying  to  the
27    Department  all  tax  accruing under this Act with respect to
28    such sales, if the retailers who are  affected  do  not  make
29    written objection to the Department to this arrangement.
30    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
31    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
32    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
33    eff. 1-1-01; revised 8-30-00.)
 
                            -28-               LRB9206191SMdv
 1        Section  15.   The  Service  Use  Tax  Act  is amended by
 2    changing Sections 3-10 and 9 as follows:

 3        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
 4        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 5    this  Section,  the tax imposed by this Act is at the rate of
 6    6.25% of the selling  price  of  tangible  personal  property
 7    transferred  as  an incident to the sale of service, but, for
 8    the purpose of computing this tax,  in  no  event  shall  the
 9    selling  price be less than the cost price of the property to
10    the serviceman.
11        Beginning on July 1, 2000 and through December 31,  2000,
12    with  respect to motor fuel, as defined in Section 1.1 of the
13    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
14    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
15        With  respect  to gasohol, as defined in the Use Tax Act,
16    the tax imposed by this Act applies to  70%  of  the  selling
17    price  of  property transferred as an incident to the sale of
18    service on or after January 1, 1990, and before July 1, 2003,
19    and to 100% of the selling price thereafter.
20        Beginning on August 1 and through August 8  of  2001  and
21    each  year  thereafter,  with respect to "school supplies" as
22    defined in Section 2-10 of the Retailers' Occupation Tax Act,
23    the tax is imposed at the rate of 1.25%. The changes made  by
24    this  amendatory  Act of the 92nd General Assembly are exempt
25    from the provisions of Section 3-75.
26        At the election of any  registered  serviceman  made  for
27    each  fiscal  year,  sales  of service in which the aggregate
28    annual cost price of tangible personal  property  transferred
29    as  an  incident to the sales of service is less than 35%, or
30    75% in the case of servicemen transferring prescription drugs
31    or servicemen engaged in  graphic  arts  production,  of  the
32    aggregate  annual  total  gross  receipts  from  all sales of
33    service, the tax imposed by this Act shall be  based  on  the
 
                            -29-               LRB9206191SMdv
 1    serviceman's  cost  price  of  the tangible personal property
 2    transferred as an incident to the sale of those services.
 3        The tax shall be imposed  at  the  rate  of  1%  on  food
 4    prepared  for  immediate consumption and transferred incident
 5    to a sale of service subject  to  this  Act  or  the  Service
 6    Occupation  Tax  Act by an entity licensed under the Hospital
 7    Licensing Act, the Nursing Home Care Act, or the  Child  Care
 8    Act of 1969.  The tax shall also be imposed at the rate of 1%
 9    on  food for human consumption that is to be consumed off the
10    premises where it is sold (other  than  alcoholic  beverages,
11    soft  drinks,  and  food that has been prepared for immediate
12    consumption and is not otherwise included in this  paragraph)
13    and   prescription   and  nonprescription  medicines,  drugs,
14    medical appliances, modifications to a motor vehicle for  the
15    purpose  of  rendering  it  usable  by a disabled person, and
16    insulin, urine testing materials, syringes, and needles  used
17    by  diabetics,  for  human  use.  For  the  purposes  of this
18    Section, the term "soft drinks" means any complete, finished,
19    ready-to-use, non-alcoholic drink, whether carbonated or not,
20    including but not limited to soda water, cola,  fruit  juice,
21    vegetable juice, carbonated water, and all other preparations
22    commonly known as soft drinks of whatever kind or description
23    that  are  contained  in  any  closed  or sealed bottle, can,
24    carton, or container, regardless of size.  "Soft drinks" does
25    not  include  coffee,  tea,  non-carbonated   water,   infant
26    formula,  milk  or  milk  products  as defined in the Grade A
27    Pasteurized Milk and Milk Products Act, or drinks  containing
28    50% or more natural fruit or vegetable juice.
29        Notwithstanding  any  other provisions of this Act, "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.
 
                            -30-               LRB9206191SMdv
 1        If  the  property  that  is acquired from a serviceman is
 2    acquired outside Illinois and used  outside  Illinois  before
 3    being  brought  to Illinois for use here and is taxable under
 4    this Act, the "selling price" on which the  tax  is  computed
 5    shall  be  reduced  by an amount that represents a reasonable
 6    allowance  for  depreciation  for   the   period   of   prior
 7    out-of-state use.
 8    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
 9    91-51, eff.  6-30-99;  91-541,  eff.  8-13-99;  91-872,  eff.
10    7-1-00.)

11        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
12        Sec.   9.  Each  serviceman  required  or  authorized  to
13    collect the tax herein imposed shall pay  to  the  Department
14    the  amount of such tax (except as otherwise provided) at the
15    time when he is required to file his return  for  the  period
16    during  which such tax was collected, less a discount of 2.1%
17    prior to January 1, 1990 and 1.75% on and  after  January  1,
18    1990, or $5 per calendar year, whichever is greater, which is
19    allowed  to reimburse the serviceman for expenses incurred in
20    collecting the tax, keeping  records,  preparing  and  filing
21    returns,   remitting  the  tax  and  supplying  data  to  the
22    Department on request. A serviceman need not remit that  part
23    of any tax collected by him to the extent that he is required
24    to pay and does pay the tax imposed by the Service Occupation
25    Tax  Act  with  respect  to his sale of service involving the
26    incidental transfer by him of the same property.
27        Except as provided hereinafter in  this  Section,  on  or
28    before  the  twentieth  day  of  each  calendar  month,  such
29    serviceman  shall  file  a  return for the preceding calendar
30    month in accordance with reasonable Rules and Regulations  to
31    be  promulgated by the Department. Such return shall be filed
32    on a form prescribed by the Department and shall contain such
33    information as the Department may reasonably require.
 
                            -31-               LRB9206191SMdv
 1        The Department may require  returns  to  be  filed  on  a
 2    quarterly  basis.  If so required, a return for each calendar
 3    quarter shall be filed on or before the twentieth day of  the
 4    calendar  month  following  the end of such calendar quarter.
 5    The taxpayer shall also file a return with the Department for
 6    each of the first two months of each calendar quarter, on  or
 7    before  the  twentieth  day  of the following calendar month,
 8    stating:
 9             1.  The name of the seller;
10             2.  The address of the principal place  of  business
11        from which he engages in business as a serviceman in this
12        State;
13             3.  The total amount of taxable receipts received by
14        him   during  the  preceding  calendar  month,  including
15        receipts  from  charge  and  time  sales,  but  less  all
16        deductions allowed by law;
17             4.  The amount of credit provided in Section  2d  of
18        this Act;
19             5.  The amount of tax due;
20             5-5.  The signature of the taxpayer; and
21             6.  Such   other   reasonable   information  as  the
22        Department may require.
23        If a taxpayer fails to sign a return within 30 days after
24    the proper notice and demand for signature by the Department,
25    the return shall be considered valid and any amount shown  to
26    be due on the return shall be deemed assessed.
27        Beginning  October 1, 1993, a taxpayer who has an average
28    monthly tax liability of $150,000  or  more  shall  make  all
29    payments  required  by  rules of the Department by electronic
30    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
31    has  an  average  monthly  tax  liability of $100,000 or more
32    shall make all payments required by rules of  the  Department
33    by  electronic  funds transfer.  Beginning October 1, 1995, a
34    taxpayer who has an average monthly tax liability of  $50,000
 
                            -32-               LRB9206191SMdv
 1    or  more  shall  make  all  payments required by rules of the
 2    Department by electronic funds transfer. Beginning October 1,
 3    2000, a taxpayer who has an annual tax liability of  $200,000
 4    or  more  shall  make  all  payments required by rules of the
 5    Department by electronic funds transfer.   The  term  "annual
 6    tax liability" shall be the sum of the taxpayer's liabilities
 7    under   this  Act,  and  under  all  other  State  and  local
 8    occupation and use tax laws administered by  the  Department,
 9    for  the  immediately  preceding  calendar  year.    The term
10    "average  monthly  tax  liability"  means  the  sum  of   the
11    taxpayer's  liabilities  under  this Act, and under all other
12    State and local occupation and use tax laws  administered  by
13    the  Department,  for the immediately preceding calendar year
14    divided by 12.
15        Before August 1 of  each  year  beginning  in  1993,  the
16    Department  shall  notify  all  taxpayers  required  to  make
17    payments by electronic funds transfer. All taxpayers required
18    to  make  payments  by  electronic  funds transfer shall make
19    those payments for a minimum of one year beginning on October
20    1.
21        Any taxpayer not required to make payments by  electronic
22    funds transfer may make payments by electronic funds transfer
23    with the permission of the Department.
24        All  taxpayers  required  to  make  payment by electronic
25    funds transfer and any taxpayers  authorized  to  voluntarily
26    make  payments  by electronic funds transfer shall make those
27    payments in the manner authorized by the Department.
28        The Department shall adopt such rules as are necessary to
29    effectuate a program of electronic  funds  transfer  and  the
30    requirements of this Section.
31        If the serviceman is otherwise required to file a monthly
32    return  and if the serviceman's average monthly tax liability
33    to the Department does not exceed $200,  the  Department  may
34    authorize  his returns to be filed on a quarter annual basis,
 
                            -33-               LRB9206191SMdv
 1    with the return for January, February and March  of  a  given
 2    year  being due by April 20 of such year; with the return for
 3    April, May and June of a given year being due by July  20  of
 4    such  year; with the return for July, August and September of
 5    a given year being due by October 20 of such year,  and  with
 6    the return for October, November and December of a given year
 7    being due by January 20 of the following year.
 8        If the serviceman is otherwise required to file a monthly
 9    or  quarterly  return and if the serviceman's average monthly
10    tax liability to the Department  does  not  exceed  $50,  the
11    Department may authorize his returns to be filed on an annual
12    basis,  with the return for a given year being due by January
13    20 of the following year.
14        Such quarter annual and annual returns, as  to  form  and
15    substance,  shall  be  subject  to  the  same requirements as
16    monthly returns.
17        Notwithstanding  any  other   provision   in   this   Act
18    concerning  the  time  within which a serviceman may file his
19    return, in the case of any serviceman who ceases to engage in
20    a kind of business which makes  him  responsible  for  filing
21    returns  under  this  Act, such serviceman shall file a final
22    return under this Act with the Department  not  more  than  1
23    month after discontinuing such business.
24        Where  a  serviceman collects the tax with respect to the
25    selling price of property which he sells  and  the  purchaser
26    thereafter  returns  such property and the serviceman refunds
27    the selling price thereof to the purchaser,  such  serviceman
28    shall  also  refund,  to  the purchaser, the tax so collected
29    from the purchaser. When filing his return for the period  in
30    which  he  refunds  such tax to the purchaser, the serviceman
31    may deduct the amount of the tax so refunded by  him  to  the
32    purchaser  from any other Service Use Tax, Service Occupation
33    Tax,  retailers'  occupation  tax  or  use  tax  which   such
34    serviceman may be required to pay or remit to the Department,
 
                            -34-               LRB9206191SMdv
 1    as  shown by such return, provided that the amount of the tax
 2    to be deducted shall previously have  been  remitted  to  the
 3    Department  by  such  serviceman. If the serviceman shall not
 4    previously have remitted  the  amount  of  such  tax  to  the
 5    Department,  he  shall  be entitled to no deduction hereunder
 6    upon refunding such tax to the purchaser.
 7        Any serviceman  filing  a  return  hereunder  shall  also
 8    include  the  total  tax  upon  the selling price of tangible
 9    personal property purchased for use by him as an incident  to
10    a sale of service, and such serviceman shall remit the amount
11    of such tax to the Department when filing such return.
12        If  experience  indicates  such action to be practicable,
13    the Department may prescribe and  furnish  a  combination  or
14    joint  return  which will enable servicemen, who are required
15    to  file  returns  hereunder  and  also  under  the   Service
16    Occupation  Tax  Act,  to  furnish all the return information
17    required by both Acts on the one form.
18        Where  the  serviceman  has  more   than   one   business
19    registered  with  the  Department under separate registration
20    hereunder, such serviceman shall not file each return that is
21    due  as  a  single  return  covering  all   such   registered
22    businesses,  but  shall  file  separate returns for each such
23    registered business.
24        Beginning January 1,  1990,  each  month  the  Department
25    shall pay into the State and Local Tax Reform Fund, a special
26    fund  in the State Treasury, the net revenue realized for the
27    preceding month from the 1% tax on sales of  food  for  human
28    consumption which is to be consumed off the premises where it
29    is sold (other than alcoholic beverages, soft drinks and food
30    which  has  been  prepared  for  immediate  consumption)  and
31    prescription  and  nonprescription  medicines, drugs, medical
32    appliances and insulin, urine testing materials, syringes and
33    needles used by diabetics.
34        Beginning January 1,  1990,  each  month  the  Department
 
                            -35-               LRB9206191SMdv
 1    shall  pay into the State and Local Sales Tax Reform Fund 20%
 2    of the net revenue realized for the preceding month from  the
 3    6.25%   general   rate  on  transfers  of  tangible  personal
 4    property, other than  tangible  personal  property  which  is
 5    purchased  outside  Illinois  at  retail  from a retailer and
 6    which is titled or registered by an agency  of  this  State's
 7    government.
 8        Beginning August 1, 2000, each month the Department shall
 9    pay  into  the  State and Local Sales Tax Reform Fund 100% of
10    the net revenue realized for the  preceding  month  from  the
11    1.25% rate on the selling price of motor fuel and gasohol.
12        Each  September  the  Department shall pay into the State
13    and Local Sales Tax Reform  Fund  100%  of  the  net  revenue
14    realized  for  the  preceding  month  from  the 1.25% rate on
15    "school  supplies"  as  defined  in  Section  2-10   of   the
16    Retailers' Occupation Tax Act.
17        Of the remainder of the moneys received by the Department
18    pursuant  to  this Act, (a)  1.75% thereof shall be paid into
19    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
20    and  on  and  after July 1, 1989, 3.8% thereof shall be  paid
21    into the Build Illinois Fund; provided, however, that  if  in
22    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
23    as  the case may be, of the moneys received by the Department
24    and required to be paid into the Build Illinois Fund pursuant
25    to Section 3 of the Retailers' Occupation Tax Act, Section  9
26    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
27    Section  9 of the Service Occupation Tax Act, such Acts being
28    hereinafter called the "Tax Acts" and such aggregate of  2.2%
29    or  3.8%,  as  the  case  may be, of moneys being hereinafter
30    called the "Tax Act Amount", and (2) the  amount  transferred
31    to the Build Illinois Fund from the State and Local Sales Tax
32    Reform  Fund  shall be less than the Annual Specified  Amount
33    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
34    Act),  an amount equal to the difference shall be immediately
 
                            -36-               LRB9206191SMdv
 1    paid into the Build Illinois Fund from other moneys  received
 2    by  the  Department  pursuant  to  the  Tax Acts; and further
 3    provided, that if on the last business day of any  month  the
 4    sum  of  (1) the Tax Act Amount required to be deposited into
 5    the Build Illinois Bond Account in the  Build  Illinois  Fund
 6    during  such month and (2) the amount transferred during such
 7    month to the Build Illinois Fund from  the  State  and  Local
 8    Sales  Tax  Reform Fund shall have been less than 1/12 of the
 9    Annual Specified Amount, an amount equal  to  the  difference
10    shall  be  immediately paid into the Build Illinois Fund from
11    other moneys received by the Department pursuant to  the  Tax
12    Acts;  and,  further  provided,  that  in  no event shall the
13    payments required  under  the  preceding  proviso  result  in
14    aggregate  payments  into the Build Illinois Fund pursuant to
15    this clause (b) for any fiscal year in excess of the  greater
16    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
17    for such fiscal year; and, further provided, that the amounts
18    payable  into  the  Build Illinois Fund under this clause (b)
19    shall be payable only until such time as the aggregate amount
20    on deposit under each trust indenture securing  Bonds  issued
21    and  outstanding  pursuant  to the Build Illinois Bond Act is
22    sufficient, taking into account any future investment income,
23    to fully provide, in accordance with such indenture, for  the
24    defeasance of or the payment of the principal of, premium, if
25    any,  and interest on the Bonds secured by such indenture and
26    on any Bonds expected to be issued thereafter  and  all  fees
27    and  costs  payable with respect thereto, all as certified by
28    the Director of the Bureau of the Budget.   If  on  the  last
29    business  day  of  any  month  in which Bonds are outstanding
30    pursuant to the Build Illinois Bond Act, the aggregate of the
31    moneys deposited in the Build Illinois Bond  Account  in  the
32    Build  Illinois  Fund  in  such  month shall be less than the
33    amount required to be transferred  in  such  month  from  the
34    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
 
                            -37-               LRB9206191SMdv
 1    Retirement and Interest Fund pursuant to Section  13  of  the
 2    Build  Illinois  Bond Act, an amount equal to such deficiency
 3    shall be immediately paid from other moneys received  by  the
 4    Department  pursuant  to  the  Tax Acts to the Build Illinois
 5    Fund; provided, however, that any amounts paid to  the  Build
 6    Illinois  Fund  in  any fiscal year pursuant to this sentence
 7    shall be deemed to constitute payments pursuant to clause (b)
 8    of  the  preceding  sentence  and  shall  reduce  the  amount
 9    otherwise payable for such fiscal year pursuant to clause (b)
10    of the  preceding  sentence.   The  moneys  received  by  the
11    Department  pursuant to this Act and required to be deposited
12    into the Build Illinois Fund are subject to the pledge, claim
13    and charge set forth in Section 12 of the Build Illinois Bond
14    Act.
15        Subject to payment of amounts  into  the  Build  Illinois
16    Fund  as  provided  in  the  preceding  paragraph  or  in any
17    amendment thereto hereafter enacted, the following  specified
18    monthly   installment   of   the   amount  requested  in  the
19    certificate of the Chairman  of  the  Metropolitan  Pier  and
20    Exposition  Authority  provided  under  Section  8.25f of the
21    State Finance Act, but not in excess of the  sums  designated
22    as  "Total Deposit", shall be deposited in the aggregate from
23    collections under Section 9 of the Use Tax Act, Section 9  of
24    the  Service Use Tax Act, Section 9 of the Service Occupation
25    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
26    into  the  McCormick  Place  Expansion  Project  Fund  in the
27    specified fiscal years.
28          Fiscal Year                     Total Deposit
29             1993                                   $0
30             1994                           53,000,000
31             1995                           58,000,000
32             1996                           61,000,000
33             1997                           64,000,000
34             1998                           68,000,000
 
                            -38-               LRB9206191SMdv
 1             1999                           71,000,000
 2             2000                           75,000,000
 3             2001                           80,000,000
 4             2002                           84,000,000
 5             2003                           89,000,000
 6             2004                           93,000,000
 7             2005                           97,000,000
 8             2006                           102,000,000
 9             2007                           108,000,000
10             2008                           115,000,000
11             2009                           120,000,000
12             2010                           126,000,000
13             2011                           132,000,000
14             2012                           138,000,000
15             2013 and                       145,000,000
16        each fiscal year
17        thereafter that bonds
18        are outstanding under
19        Section 13.2 of the
20        Metropolitan Pier and
21        Exposition Authority Act,
22        but not after fiscal year 2029.
23        Beginning July 20, 1993 and in each month of each  fiscal
24    year  thereafter,  one-eighth  of the amount requested in the
25    certificate of the Chairman  of  the  Metropolitan  Pier  and
26    Exposition  Authority  for  that fiscal year, less the amount
27    deposited into the McCormick Place Expansion Project Fund  by
28    the  State Treasurer in the respective month under subsection
29    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
30    Authority  Act,  plus cumulative deficiencies in the deposits
31    required under this Section for previous  months  and  years,
32    shall be deposited into the McCormick Place Expansion Project
33    Fund,  until  the  full amount requested for the fiscal year,
34    but not in excess of the amount  specified  above  as  "Total
 
                            -39-               LRB9206191SMdv
 1    Deposit", has been deposited.
 2        Subject  to  payment  of  amounts into the Build Illinois
 3    Fund and the McCormick Place Expansion Project Fund  pursuant
 4    to  the  preceding  paragraphs  or  in  any amendment thereto
 5    hereafter enacted, each month the Department shall  pay  into
 6    the  Local  Government  Distributive  Fund  0.4%  of  the net
 7    revenue realized for the preceding month from the 5%  general
 8    rate  or  0.4%  of  80%  of  the net revenue realized for the
 9    preceding month from the 6.25% general rate, as the case  may
10    be,  on the selling price of tangible personal property which
11    amount shall, subject to  appropriation,  be  distributed  as
12    provided  in  Section  2 of the State Revenue Sharing Act. No
13    payments or distributions pursuant to this paragraph shall be
14    made if the tax imposed  by  this  Act  on  photo  processing
15    products  is  declared  unconstitutional,  or if the proceeds
16    from such tax are unavailable  for  distribution  because  of
17    litigation.
18        Subject  to  payment  of  amounts into the Build Illinois
19    Fund, the McCormick Place Expansion  Project  Fund,  and  the
20    Local  Government Distributive Fund pursuant to the preceding
21    paragraphs or in any amendments  thereto  hereafter  enacted,
22    beginning  July  1, 1993, the Department shall each month pay
23    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
24    revenue  realized  for  the  preceding  month  from the 6.25%
25    general rate  on  the  selling  price  of  tangible  personal
26    property.
27        All  remaining moneys received by the Department pursuant
28    to this Act shall be paid into the General  Revenue  Fund  of
29    the State Treasury.
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
 
                            -40-               LRB9206191SMdv
 1    realized under this  Act  for  the  second  preceding  month.
 2    Beginning  April 1, 2000, this transfer is no longer required
 3    and shall not be made.
 4        Net revenue realized for a month  shall  be  the  revenue
 5    collected  by the State pursuant to this Act, less the amount
 6    paid out during  that  month  as  refunds  to  taxpayers  for
 7    overpayment of liability.
 8    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
 9    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
10    91-872, eff. 7-1-00.)

11        Section 20.  The Service Occupation Tax Act is amended by
12    changing Sections 3-10 and 9 as follows:

13        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
14        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
15    this  Section,  the tax imposed by this Act is at the rate of
16    6.25% of the "selling price", as defined in Section 2 of  the
17    Service  Use Tax Act, of the tangible personal property.  For
18    the purpose of computing this tax,  in  no  event  shall  the
19    "selling price" be less than the cost price to the serviceman
20    of  the  tangible personal property transferred.  The selling
21    price of each item of tangible personal property  transferred
22    as  an  incident  of  a  sale  of  service  may be shown as a
23    distinct and separate item on the serviceman's billing to the
24    service customer. If the selling price is not so  shown,  the
25    selling  price of the tangible personal property is deemed to
26    be 50% of the serviceman's  entire  billing  to  the  service
27    customer.   When,  however, a serviceman contracts to design,
28    develop, and produce special order  machinery  or  equipment,
29    the   tax   imposed  by  this  Act  shall  be  based  on  the
30    serviceman's cost price of  the  tangible  personal  property
31    transferred incident to the completion of the contract.
32        Beginning  on July 1, 2000 and through December 31, 2000,
 
                            -41-               LRB9206191SMdv
 1    with respect to motor fuel, as defined in Section 1.1 of  the
 2    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
 3    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 4        With respect to gasohol, as defined in the Use  Tax  Act,
 5    the  tax  imposed  by this Act shall apply to 70% of the cost
 6    price of property transferred as an incident to the  sale  of
 7    service on or after January 1, 1990, and before July 1, 2003,
 8    and to 100% of the cost price thereafter.
 9        Beginning  on  August  1 and through August 8 of 2001 and
10    each year thereafter, with respect to  "school  supplies"  as
11    defined in Section 2-10 of the Retailers' Occupation Tax Act,
12    the  tax is imposed at the rate of 1.25%. The changes made by
13    this amendatory Act of the 92nd General Assembly  are  exempt
14    from the provisions of Section 3-55.
15        At  the  election  of  any registered serviceman made for
16    each fiscal year, sales of service  in  which  the  aggregate
17    annual  cost  price of tangible personal property transferred
18    as an incident to the sales of service is less than  35%,  or
19    75% in the case of servicemen transferring prescription drugs
20    or  servicemen  engaged  in  graphic  arts production, of the
21    aggregate annual total  gross  receipts  from  all  sales  of
22    service,  the  tax  imposed by this Act shall be based on the
23    serviceman's cost price of  the  tangible  personal  property
24    transferred incident to the sale of those services.
25        The  tax  shall  be  imposed  at  the  rate of 1% on food
26    prepared for immediate consumption and  transferred  incident
27    to  a  sale  of  service  subject  to this Act or the Service
28    Occupation Tax Act by an entity licensed under  the  Hospital
29    Licensing  Act,  the Nursing Home Care Act, or the Child Care
30    Act of 1969.  The tax shall also be imposed at the rate of 1%
31    on food for human consumption that is to be consumed off  the
32    premises  where  it  is sold (other than alcoholic beverages,
33    soft drinks, and food that has been  prepared  for  immediate
34    consumption  and is not otherwise included in this paragraph)
 
                            -42-               LRB9206191SMdv
 1    and  prescription  and  nonprescription   medicines,   drugs,
 2    medical  appliances, modifications to a motor vehicle for the
 3    purpose of rendering it usable  by  a  disabled  person,  and
 4    insulin,  urine testing materials, syringes, and needles used
 5    by diabetics, for  human  use.   For  the  purposes  of  this
 6    Section, the term "soft drinks" means any complete, finished,
 7    ready-to-use, non-alcoholic drink, whether carbonated or not,
 8    including  but  not limited to soda water, cola, fruit juice,
 9    vegetable juice, carbonated water, and all other preparations
10    commonly known as soft drinks of whatever kind or description
11    that are contained in any closed or sealed  can,  carton,  or
12    container,  regardless  of  size.   "Soft  drinks"  does  not
13    include  coffee,  tea,  non-carbonated water, infant formula,
14    milk or milk products as defined in the Grade  A  Pasteurized
15    Milk  and Milk Products Act, or drinks containing 50% or more
16    natural fruit or vegetable juice.
17        Notwithstanding any other provisions of this  Act,  "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    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
24    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

25        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
26        Sec.  9.   Each  serviceman  required  or  authorized  to
27    collect  the  tax  herein imposed shall pay to the Department
28    the amount of such tax at the time when  he  is  required  to
29    file  his  return  for  the  period during which such tax was
30    collectible, 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
33    reimburse  the serviceman for expenses incurred in collecting
 
                            -43-               LRB9206191SMdv
 1    the tax,  keeping  records,  preparing  and  filing  returns,
 2    remitting  the  tax  and  supplying data to the Department on
 3    request.
 4        Where such tangible personal property  is  sold  under  a
 5    conditional  sales  contract, or under any other form of sale
 6    wherein the payment of the principal sum, or a part  thereof,
 7    is  extended  beyond  the  close  of the period for which the
 8    return is filed, the serviceman, in collecting  the  tax  may
 9    collect,  for each tax return period, only the tax applicable
10    to the part of the selling  price  actually  received  during
11    such tax return period.
12        Except  as  provided  hereinafter  in this Section, on or
13    before  the  twentieth  day  of  each  calendar  month,  such
14    serviceman shall file a return  for  the  preceding  calendar
15    month  in accordance with reasonable rules and regulations to
16    be promulgated by the Department of  Revenue.    Such  return
17    shall  be  filed  on  a form prescribed by the Department and
18    shall  contain  such  information  as  the   Department   may
19    reasonably require.
20        The  Department  may  require  returns  to  be filed on a
21    quarterly basis.  If so required, a return for each  calendar
22    quarter  shall be filed on or before the twentieth day of the
23    calendar month following the end of  such  calendar  quarter.
24    The taxpayer shall also file a return with the Department for
25    each  of the first two months of each calendar quarter, on or
26    before the twentieth day of  the  following  calendar  month,
27    stating:
28             1.  The name of the seller;
29             2.  The  address  of the principal place of business
30        from which he engages in business as a serviceman in this
31        State;
32             3.  The total amount of taxable receipts received by
33        him  during  the  preceding  calendar  month,   including
34        receipts  from  charge  and  time  sales,  but  less  all
 
                            -44-               LRB9206191SMdv
 1        deductions allowed by law;
 2             4.  The  amount  of credit provided in Section 2d of
 3        this Act;
 4             5.  The amount of tax due;
 5             5-5.  The signature of the taxpayer; and
 6             6.  Such  other  reasonable   information   as   the
 7        Department may require.
 8        If a taxpayer fails to sign a return within 30 days after
 9    the proper notice and demand for signature by the Department,
10    the  return shall be considered valid and any amount shown to
11    be due on the return shall be deemed assessed.
12        A serviceman may accept a Manufacturer's Purchase  Credit
13    certification from a purchaser in satisfaction of Service Use
14    Tax as provided in Section 3-70 of the Service Use Tax Act if
15    the  purchaser  provides  the  appropriate  documentation  as
16    required  by  Section  3-70  of  the  Service Use Tax Act.  A
17    Manufacturer's Purchase Credit certification, accepted  by  a
18    serviceman as provided in Section 3-70 of the Service Use Tax
19    Act,  may  be  used  by  that  serviceman  to satisfy Service
20    Occupation  Tax  liability  in  the  amount  claimed  in  the
21    certification, not to exceed 6.25% of the receipts subject to
22    tax from a qualifying purchase.
23        If the serviceman's average monthly tax liability to  the
24    Department does not exceed $200, the Department may authorize
25    his  returns  to be filed on a quarter annual basis, with the
26    return for January, February and March of a given year  being
27    due  by April 20 of such year; with the return for April, May
28    and June of a given year being due by July 20 of  such  year;
29    with  the  return  for  July, August and September of a given
30    year being due by October 20  of  such  year,  and  with  the
31    return  for  October,  November  and December of a given year
32    being due by January 20 of the following year.
33        If the serviceman's average monthly tax liability to  the
34    Department  does not exceed $50, the Department may authorize
 
                            -45-               LRB9206191SMdv
 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        Such quarter annual and annual returns, as  to  form  and
 5    substance,  shall  be  subject  to  the  same requirements as
 6    monthly returns.
 7        Notwithstanding  any  other   provision   in   this   Act
 8    concerning  the  time  within which a serviceman may file his
 9    return, in the case of any serviceman who ceases to engage in
10    a kind of business which makes  him  responsible  for  filing
11    returns  under  this  Act, such serviceman shall file a final
12    return under this Act with the Department  not  more  than  1
13    month after discontinuing such business.
14        Beginning  October 1, 1993, a taxpayer who has an average
15    monthly tax liability of $150,000  or  more  shall  make  all
16    payments  required  by  rules of the Department by electronic
17    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
18    has  an  average  monthly  tax  liability of $100,000 or more
19    shall make all payments required by rules of  the  Department
20    by  electronic  funds transfer.  Beginning October 1, 1995, a
21    taxpayer who has an average monthly tax liability of  $50,000
22    or  more  shall  make  all  payments required by rules of the
23    Department by electronic funds transfer.   Beginning  October
24    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
25    $200,000 or more shall make all payments required by rules of
26    the  Department  by  electronic  funds  transfer.   The  term
27    "annual tax liability" shall be the  sum  of  the  taxpayer's
28    liabilities  under  this  Act,  and under all other State and
29    local  occupation  and  use  tax  laws  administered  by  the
30    Department, for the immediately preceding calendar year.  The
31    term  "average  monthly  tax  liability" means the sum of the
32    taxpayer's liabilities under this Act, and  under  all  other
33    State  and  local occupation and use tax laws administered by
34    the Department, for the immediately preceding  calendar  year
 
                            -46-               LRB9206191SMdv
 1    divided by 12.
 2        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        Any  taxpayer not required to make payments by electronic
 9    funds transfer may make payments by electronic funds transfer
10    with the permission of the Department.
11        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        The Department shall adopt such rules as are necessary to
16    effectuate  a  program  of  electronic funds transfer and the
17    requirements of this Section.
18        Where a serviceman collects the tax with respect  to  the
19    selling  price  of  tangible personal property which he sells
20    and the purchaser thereafter returns such  tangible  personal
21    property and the serviceman refunds the selling price thereof
22    to  the  purchaser, such serviceman shall also refund, to the
23    purchaser, the tax so collected  from  the  purchaser.   When
24    filing his return for the period in which he refunds such tax
25    to the purchaser, the serviceman may deduct the amount of the
26    tax  so  refunded  by  him  to  the  purchaser from any other
27    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
28    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
29    required to pay or remit to the Department, as shown by  such
30    return,  provided  that  the amount of the tax to be deducted
31    shall previously have been remitted to the Department by such
32    serviceman.  If the  serviceman  shall  not  previously  have
33    remitted  the  amount of such tax to the Department, he shall
34    be entitled to no deduction hereunder upon refunding such tax
 
                            -47-               LRB9206191SMdv
 1    to the purchaser.
 2        If experience indicates such action  to  be  practicable,
 3    the  Department  may  prescribe  and furnish a combination or
 4    joint return which will enable servicemen, who  are  required
 5    to  file  returns  hereunder  and  also  under the Retailers'
 6    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
 7    Act,  to  furnish  all the return information required by all
 8    said Acts on the one form.
 9        Where  the  serviceman  has  more   than   one   business
10    registered  with  the Department under separate registrations
11    hereunder, such serviceman shall file  separate  returns  for
12    each registered business.
13        Beginning  January  1,  1990,  each  month the Department
14    shall pay into the Local  Government  Tax  Fund  the  revenue
15    realized  for the preceding month from the 1% tax on sales of
16    food for human consumption which is to be  consumed  off  the
17    premises  where  it  is sold (other than alcoholic beverages,
18    soft drinks and food which has been  prepared  for  immediate
19    consumption)  and prescription and nonprescription medicines,
20    drugs,  medical  appliances  and   insulin,   urine   testing
21    materials, syringes and needles used by diabetics.
22        Beginning  January  1,  1990,  each  month the Department
23    shall pay into the County and Mass Transit District  Fund  4%
24    of  the  revenue  realized  for  the preceding month from the
25    6.25% general rate.
26        Beginning August 1, 2000, each month the Department shall
27    pay into the County and Mass Transit District Fund 20% of the
28    net revenue realized for the preceding month from  the  1.25%
29    rate on the selling price of motor fuel and gasohol.
30        Each  September  the Department shall pay into the County
31    and Mass  Transit  District  Fund  20%  of  the  net  revenue
32    realized  for  the  preceding  month  from  the 1.25% rate on
33    "school  supplies"  as  defined  in  Section  2-10   of   the
34    Retailers' Occupation Tax Act.
 
                            -48-               LRB9206191SMdv
 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        Beginning August 1, 2000, each month the Department shall
 6    pay into the Local Government Tax Fund 80% of the net revenue
 7    realized for the preceding month from the 1.25% rate  on  the
 8    selling price of motor fuel and gasohol.
 9        Each  September  the  Department shall pay into the Local
10    Government Tax Fund 80% of the net revenue realized  for  the
11    preceding  month  from the 1.25% rate on "school supplies" as
12    defined in Section 2-10 of the Retailers' Occupation Tax Act.
13        Of the remainder of the moneys received by the Department
14    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
15    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
16    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
17    into  the  Build Illinois Fund; provided, however, that if in
18    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
19    as the case may be, of the moneys received by the  Department
20    and required to be paid into the Build Illinois Fund pursuant
21    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
22    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
23    Section 9 of the Service Occupation Tax Act, such Acts  being
24    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
25    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
26    called  the  "Tax Act Amount", and (2) the amount transferred
27    to the Build Illinois Fund from the State and Local Sales Tax
28    Reform Fund shall be less than the  Annual  Specified  Amount
29    (as  defined  in  Section  3 of the Retailers' Occupation Tax
30    Act), an amount equal to the difference shall be  immediately
31    paid  into the Build Illinois Fund from other moneys received
32    by the Department pursuant  to  the  Tax  Acts;  and  further
33    provided,  that  if on the last business day of any month the
34    sum of (1) the Tax Act Amount required to be  deposited  into
 
                            -49-               LRB9206191SMdv
 1    the  Build Illinois Account in the Build Illinois Fund during
 2    such month and (2) the amount transferred during  such  month
 3    to the Build Illinois Fund from the State and Local Sales Tax
 4    Reform  Fund  shall  have  been  less than 1/12 of the Annual
 5    Specified Amount, 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 the  Tax  Acts;
 8    and,  further  provided,  that in no event shall the payments
 9    required under the  preceding  proviso  result  in  aggregate
10    payments into the Build Illinois Fund pursuant to this clause
11    (b)  for  any fiscal year in excess of the greater of (i) the
12    Tax Act Amount or (ii) the Annual Specified Amount  for  such
13    fiscal  year; and, further provided, that the amounts payable
14    into the Build Illinois Fund under this clause (b)  shall  be
15    payable  only  until  such  time  as  the aggregate amount on
16    deposit under each trust indenture securing Bonds issued  and
17    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
18    sufficient, taking into account any future investment income,
19    to fully provide, in accordance with such indenture, for  the
20    defeasance of or the payment of the principal of, premium, if
21    any,  and interest on the Bonds secured by such indenture and
22    on any Bonds expected to be issued thereafter  and  all  fees
23    and  costs  payable with respect thereto, all as certified by
24    the Director of the Bureau of the Budget.   If  on  the  last
25    business  day  of  any  month  in which Bonds are outstanding
26    pursuant to the Build Illinois Bond Act, the aggregate of the
27    moneys deposited in the Build Illinois Bond  Account  in  the
28    Build  Illinois  Fund  in  such  month shall be less than the
29    amount required to be transferred  in  such  month  from  the
30    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
31    Retirement and Interest Fund pursuant to Section  13  of  the
32    Build  Illinois  Bond Act, an amount equal to such deficiency
33    shall be immediately paid from other moneys received  by  the
34    Department  pursuant  to  the  Tax Acts to the Build Illinois
 
                            -50-               LRB9206191SMdv
 1    Fund; provided, however, that any amounts paid to  the  Build
 2    Illinois  Fund  in  any fiscal year pursuant to this sentence
 3    shall be deemed to constitute payments pursuant to clause (b)
 4    of  the  preceding  sentence  and  shall  reduce  the  amount
 5    otherwise payable for such fiscal year pursuant to clause (b)
 6    of the  preceding  sentence.   The  moneys  received  by  the
 7    Department  pursuant to this Act and required to be deposited
 8    into the Build Illinois Fund are subject to the pledge, claim
 9    and charge set forth in Section 12 of the Build Illinois Bond
10    Act.
11        Subject to payment of amounts  into  the  Build  Illinois
12    Fund  as  provided  in  the  preceding  paragraph  or  in any
13    amendment thereto hereafter enacted, the following  specified
14    monthly   installment   of   the   amount  requested  in  the
15    certificate of the Chairman  of  the  Metropolitan  Pier  and
16    Exposition  Authority  provided  under  Section  8.25f of the
17    State Finance Act, but not in excess of the  sums  designated
18    as  "Total Deposit", shall be deposited in the aggregate from
19    collections under Section 9 of the Use Tax Act, Section 9  of
20    the  Service Use Tax Act, Section 9 of the Service Occupation
21    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
22    into  the  McCormick  Place  Expansion  Project  Fund  in the
23    specified fiscal years.
24             Fiscal Year                   Total Deposit
25                 1993                            $0
26                 1994                        53,000,000
27                 1995                        58,000,000
28                 1996                        61,000,000
29                 1997                        64,000,000
30                 1998                        68,000,000
31                 1999                        71,000,000
32                 2000                        75,000,000
33                 2001                        80,000,000
34                 2002                        84,000,000
 
                            -51-               LRB9206191SMdv
 1                 2003                        89,000,000
 2                 2004                        93,000,000
 3                 2005                        97,000,000
 4                 2006                       102,000,000
 5                 2007                       108,000,000
 6                 2008                       115,000,000
 7                 2009                       120,000,000
 8                 2010                       126,000,000
 9                 2011                       132,000,000
10                 2012                       138,000,000
11                 2013 and                   145,000,000
12             each fiscal year
13          thereafter that bonds
14          are outstanding under
15           Section 13.2 of the
16          Metropolitan Pier and
17           Exposition Authority
18        Act, but not after fiscal year 2029.
19        Beginning July 20, 1993 and in each month of each  fiscal
20    year  thereafter,  one-eighth  of the amount requested in the
21    certificate of the Chairman  of  the  Metropolitan  Pier  and
22    Exposition  Authority  for  that fiscal year, less the amount
23    deposited into the McCormick Place Expansion Project Fund  by
24    the  State Treasurer in the respective month under subsection
25    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
26    Authority  Act,  plus cumulative deficiencies in the deposits
27    required under this Section for previous  months  and  years,
28    shall be deposited into the McCormick Place Expansion Project
29    Fund,  until  the  full amount requested for the fiscal year,
30    but not in excess of the amount  specified  above  as  "Total
31    Deposit", has been deposited.
32        Subject  to  payment  of  amounts into the Build Illinois
33    Fund and the McCormick Place Expansion Project Fund  pursuant
34    to  the  preceding  paragraphs  or  in  any amendment thereto
 
                            -52-               LRB9206191SMdv
 1    hereafter enacted, each month the Department shall  pay  into
 2    the  Local  Government  Distributive  Fund  0.4%  of  the net
 3    revenue realized for the preceding month from the 5%  general
 4    rate  or  0.4%  of  80%  of  the net revenue realized for the
 5    preceding month from the 6.25% general rate, as the case  may
 6    be,  on the selling price of tangible personal property which
 7    amount shall, subject to  appropriation,  be  distributed  as
 8    provided  in  Section 2 of the State Revenue Sharing Act.  No
 9    payments or distributions pursuant to this paragraph shall be
10    made if the  tax  imposed  by  this  Act  on  photoprocessing
11    products  is  declared  unconstitutional,  or if the proceeds
12    from such tax are unavailable  for  distribution  because  of
13    litigation.
14        Subject  to  payment  of  amounts into the Build Illinois
15    Fund, the McCormick Place Expansion  Project  Fund,  and  the
16    Local  Government Distributive Fund pursuant to the preceding
17    paragraphs or in any amendments  thereto  hereafter  enacted,
18    beginning  July  1, 1993, the Department shall each month pay
19    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
20    revenue  realized  for  the  preceding  month  from the 6.25%
21    general rate  on  the  selling  price  of  tangible  personal
22    property.
23        Remaining  moneys  received by the Department pursuant to
24    this Act shall be paid into the General Revenue Fund  of  the
25    State Treasury.
26        The  Department  may,  upon  separate written notice to a
27    taxpayer, require the taxpayer to prepare and file  with  the
28    Department  on a form prescribed by the Department within not
29    less than 60 days after  receipt  of  the  notice  an  annual
30    information  return for the tax year specified in the notice.
31    Such  annual  return  to  the  Department  shall  include   a
32    statement  of  gross receipts as shown by the taxpayer's last
33    Federal income tax return.  If  the  total  receipts  of  the
34    business  as reported in the Federal income tax return do not
 
                            -53-               LRB9206191SMdv
 1    agree with the gross receipts reported to the  Department  of
 2    Revenue for the same period, the taxpayer shall attach to his
 3    annual  return  a  schedule showing a reconciliation of the 2
 4    amounts and the reasons for the difference.   The  taxpayer's
 5    annual  return to the Department shall also disclose the cost
 6    of goods sold by the taxpayer during the year covered by such
 7    return, opening and closing inventories  of  such  goods  for
 8    such  year, cost of goods used from stock or taken from stock
 9    and given away by the taxpayer during  such  year,  pay  roll
10    information  of  the taxpayer's business during such year and
11    any additional reasonable information  which  the  Department
12    deems  would  be  helpful  in determining the accuracy of the
13    monthly, quarterly or annual returns filed by  such  taxpayer
14    as hereinbefore provided for in this Section.
15        If the annual information return required by this Section
16    is  not  filed  when  and  as required, the taxpayer shall be
17    liable as follows:
18             (i)  Until January 1, 1994, the  taxpayer  shall  be
19        liable  for  a  penalty equal to 1/6 of 1% of the tax due
20        from such taxpayer under this Act during the period to be
21        covered by the annual return for each month  or  fraction
22        of  a  month  until such return is filed as required, the
23        penalty to be assessed and collected in the  same  manner
24        as any other penalty provided for in this Act.
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        The chief executive officer, proprietor, owner or highest
29    ranking manager shall sign the annual return to  certify  the
30    accuracy  of  the  information contained therein.  Any person
31    who willfully signs the annual  return  containing  false  or
32    inaccurate   information  shall  be  guilty  of  perjury  and
33    punished accordingly.  The annual return form  prescribed  by
34    the  Department  shall  include  a  warning  that  the person
 
                            -54-               LRB9206191SMdv
 1    signing the return may be liable for perjury.
 2        The foregoing portion  of  this  Section  concerning  the
 3    filing  of  an annual information return shall not apply to a
 4    serviceman who is not required to file an income  tax  return
 5    with the United States Government.
 6        As  soon  as  possible after the first day of each month,
 7    upon  certification  of  the  Department  of   Revenue,   the
 8    Comptroller  shall  order transferred and the Treasurer shall
 9    transfer from the General Revenue Fund to the Motor Fuel  Tax
10    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
11    realized under this  Act  for  the  second  preceding  month.
12    Beginning  April 1, 2000, this transfer is no longer required
13    and shall not be made.
14        Net revenue realized for a month  shall  be  the  revenue
15    collected  by the State pursuant to this Act, less the amount
16    paid out during  that  month  as  refunds  to  taxpayers  for
17    overpayment of liability.
18        For  greater  simplicity  of  administration, it shall be
19    permissible  for  manufacturers,  importers  and  wholesalers
20    whose products are sold by numerous servicemen  in  Illinois,
21    and  who  wish  to  do  so,  to assume the responsibility for
22    accounting and paying to  the  Department  all  tax  accruing
23    under  this Act with respect to such sales, if the servicemen
24    who are  affected  do  not  make  written  objection  to  the
25    Department to this arrangement.
26    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
27    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
28    91-872, eff. 7-1-00.)

29        Section 25.  The Retailers' Occupation Tax Act is amended
30    by changing Sections 2-10 and 3 as follows:

31        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
32        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
 
                            -55-               LRB9206191SMdv
 1    this  Section,  the tax imposed by this Act is at the rate of
 2    6.25% of gross  receipts  from  sales  of  tangible  personal
 3    property made in the course of business.
 4        Beginning  on July 1, 2000 and through December 31, 2000,
 5    with respect to motor fuel, as defined in Section 1.1 of  the
 6    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
 7    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 8        Within  14  days  after  the  effective  date   of   this
 9    amendatory Act of the 91st General Assembly, each retailer of
10    motor fuel and gasohol shall cause the following notice to be
11    posted   in  a  prominently  visible  place  on  each  retail
12    dispensing device that is used  to  dispense  motor  fuel  or
13    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
14    State of Illinois has eliminated the State's share  of  sales
15    tax  on motor fuel and gasohol through December 31, 2000. The
16    price on this pump should  reflect  the  elimination  of  the
17    tax."   The  notice  shall be printed in bold print on a sign
18    that is no smaller than 4 inches by 8 inches.  The sign shall
19    be clearly visible to customers.  Any retailer who  fails  to
20    post or maintain a required sign through December 31, 2000 is
21    guilty  of  a  petty offense for which the fine shall be $500
22    per day per each retail premises where a violation occurs.
23        With respect to gasohol, as defined in the Use  Tax  Act,
24    the tax imposed by this Act applies to 70% of the proceeds of
25    sales  made  on  or after January 1, 1990, and before July 1,
26    2003, and to 100% of the proceeds of sales made thereafter.
27        Beginning on August 1 and through August 8  of  2001  and
28    each  year thereafter, with respect to "school supplies", the
29    tax is imposed at the rate of 1.25%. "School supplies"  means
30    (i)  clothing  having  a  selling price of $100 or less, (ii)
31    wallets having a selling price of $100 or  less,  (iii)  bags
32    having a selling price of $100 or less, (iv) supplies used by
33    students  for  school  purposes, except calculators, having a
34    selling price of $10 or less, and (v)  calculators  having  a
 
                            -56-               LRB9206191SMdv
 1    selling  price  of  $100  or  less.   For purposes of "school
 2    supplies": "clothing" means any article of  wearing  apparel,
 3    including  all  footwear,  except  skis,  swim  fins,  roller
 4    blades, and skates, intended to be worn on or about the human
 5    body,  but  does  not  include  watches, watchbands, jewelry,
 6    umbrellas,  or  handkerchiefs;  "bags"   includes   handbags,
 7    backpacks,  and fanny packs, but does not include briefcases,
 8    suitcases, and other garment  bags;  and  "supplies  used  by
 9    students  for  school purposes" means pens, pencils, erasers,
10    crayons,  notebooks,  notebook  filler  paper,  legal   pads,
11    composition  books,  poster paper, scissors, cellophane tape,
12    glue  or   paste,   rulers,   protractors,   compasses,   and
13    calculators.   "School  supplies" that are normally sold as a
14    unit must continue to be sold in that manner  and  cannot  be
15    priced separately and sold as individual items in order to be
16    subject  to  the tax holiday.  Any discount, coupon, or other
17    credit offered either by the retailer or by a vendor  of  the
18    retailer  to  reduce the final price to the customer shall be
19    taken into  account  in  determining  the  selling  price  of
20    "school  supplies" for purposes of this tax holiday.  "School
21    supplies" do  not  include  sales  within  a  theme  park  or
22    entertainment   complex,   or   within   a   public   lodging
23    establishment.   The  changes  made by this amendatory Act of
24    the 92nd General Assembly are exempt from the  provisions  of
25    Section 2-70.
26        With  respect to food for human consumption that is to be
27    consumed off the  premises  where  it  is  sold  (other  than
28    alcoholic  beverages,  soft  drinks,  and  food that has been
29    prepared for  immediate  consumption)  and  prescription  and
30    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, the tax is imposed at the rate of 1%. For  the  purposes
 
                            -57-               LRB9206191SMdv
 1    of  this  Section, the term "soft drinks" means any complete,
 2    finished,   ready-to-use,   non-alcoholic   drink,    whether
 3    carbonated  or  not, including but not limited to soda water,
 4    cola, fruit juice, vegetable juice, carbonated water, and all
 5    other preparations commonly known as soft drinks of  whatever
 6    kind  or  description  that  are  contained  in any closed or
 7    sealed bottle, can, carton, or container, regardless of size.
 8    "Soft drinks" does not include  coffee,  tea,  non-carbonated
 9    water,  infant  formula,  milk or milk products as defined in
10    the Grade A Pasteurized Milk and Milk Products Act, or drinks
11    containing 50% or more natural fruit or vegetable juice.
12        Notwithstanding any other provisions of this  Act,  "food
13    for human consumption that is to be consumed off the premises
14    where  it  is  sold" includes all food sold through a vending
15    machine, except  soft  drinks  and  food  products  that  are
16    dispensed  hot  from  a  vending  machine,  regardless of the
17    location of the vending machine.
18    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
19    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

20        (35 ILCS 120/3) (from Ch. 120, par. 442)
21        Sec. 3.  Except as provided in this Section, on or before
22    the  twentieth  day  of  each  calendar  month,  every person
23    engaged in the business of selling tangible personal property
24    at retail in this State during the preceding  calendar  month
25    shall file a return with the Department, stating:
26             1.  The name of the seller;
27             2.  His  residence  address  and  the address of his
28        principal place  of  business  and  the  address  of  the
29        principal  place  of  business  (if  that  is a different
30        address) from which he engages in the business of selling
31        tangible personal property at retail in this State;
32             3.  Total amount of receipts received by him  during
33        the  preceding calendar month or quarter, as the case may
 
                            -58-               LRB9206191SMdv
 1        be, from sales of tangible personal  property,  and  from
 2        services furnished, by him during such preceding calendar
 3        month or quarter;
 4             4.  Total   amount   received   by  him  during  the
 5        preceding calendar month or quarter on  charge  and  time
 6        sales  of  tangible  personal property, and from services
 7        furnished, by him prior to the month or quarter for which
 8        the return is filed;
 9             5.  Deductions allowed by law;
10             6.  Gross receipts which were received by him during
11        the preceding calendar month  or  quarter  and  upon  the
12        basis of which the tax is imposed;
13             7.  The  amount  of credit provided in Section 2d of
14        this Act;
15             8.  The amount of tax due;
16             9.  The signature of the taxpayer; and
17             10.  Such  other  reasonable  information   as   the
18        Department may require.
19        If a taxpayer fails to sign a return within 30 days after
20    the proper notice and demand for signature by the Department,
21    the  return shall be considered valid and any amount shown to
22    be due on the return shall be deemed assessed.
23        Each return shall be  accompanied  by  the  statement  of
24    prepaid tax issued pursuant to Section 2e for which credit is
25    claimed.
26        A  retailer  may  accept a Manufacturer's Purchase Credit
27    certification from a purchaser in satisfaction of Use Tax  as
28    provided  in Section 3-85 of the Use Tax Act if the purchaser
29    provides the appropriate documentation as required by Section
30    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
31    certification,  accepted by a retailer as provided in Section
32    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
33    satisfy  Retailers'  Occupation  Tax  liability in the amount
34    claimed in the certification, not  to  exceed  6.25%  of  the
 
                            -59-               LRB9206191SMdv
 1    receipts subject to tax from a qualifying purchase.
 2        The  Department  may  require  returns  to  be filed on a
 3    quarterly basis.  If so required, a return for each  calendar
 4    quarter  shall be filed on or before the twentieth day of the
 5    calendar month following the end of  such  calendar  quarter.
 6    The taxpayer shall also file a return with the Department for
 7    each  of the first two months of each calendar quarter, on or
 8    before the twentieth day of  the  following  calendar  month,
 9    stating:
10             1.  The name of the seller;
11             2.  The  address  of the principal place of business
12        from which he engages in the business of selling tangible
13        personal property at retail in this State;
14             3.  The total amount of taxable receipts received by
15        him during the preceding calendar  month  from  sales  of
16        tangible  personal  property by him during such preceding
17        calendar month, including receipts from charge  and  time
18        sales, but less all deductions allowed by law;
19             4.  The  amount  of credit provided in Section 2d of
20        this Act;
21             5.  The amount of tax due; and
22             6.  Such  other  reasonable   information   as   the
23        Department may require.
24        If  a total amount of less than $1 is payable, refundable
25    or creditable, such amount shall be disregarded if it is less
26    than 50 cents and shall be increased to $1 if it is 50  cents
27    or more.
28        Beginning  October 1, 1993, a taxpayer who has an average
29    monthly tax liability of $150,000  or  more  shall  make  all
30    payments  required  by  rules of the Department by electronic
31    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
32    has  an  average  monthly  tax  liability of $100,000 or more
33    shall make all payments required by rules of  the  Department
34    by  electronic  funds transfer.  Beginning October 1, 1995, a
 
                            -60-               LRB9206191SMdv
 1    taxpayer who has an average monthly tax liability of  $50,000
 2    or  more  shall  make  all  payments required by rules of the
 3    Department by electronic funds transfer.   Beginning  October
 4    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
 5    $200,000 or more shall make all payments required by rules of
 6    the  Department  by  electronic  funds  transfer.   The  term
 7    "annual tax liability" shall be the  sum  of  the  taxpayer's
 8    liabilities  under  this  Act,  and under all other State and
 9    local  occupation  and  use  tax  laws  administered  by  the
10    Department, for the immediately preceding calendar year.  The
11    term  "average monthly tax liability" shall be the sum of the
12    taxpayer's liabilities under this Act, and  under  all  other
13    State  and  local occupation and use tax laws administered by
14    the Department, for the immediately preceding  calendar  year
15    divided by 12.
16        Before  August  1  of  each  year  beginning in 1993, the
17    Department  shall  notify  all  taxpayers  required  to  make
18    payments  by  electronic  funds  transfer.    All   taxpayers
19    required  to make payments by electronic funds transfer shall
20    make those payments for a minimum of one  year  beginning  on
21    October 1.
22        Any  taxpayer not required to make payments by electronic
23    funds transfer may make payments by electronic funds transfer
24    with the permission of the Department.
25        All taxpayers required  to  make  payment  by  electronic
26    funds  transfer  and  any taxpayers authorized to voluntarily
27    make payments by electronic funds transfer shall  make  those
28    payments in the manner authorized by the Department.
29        The Department shall adopt such rules as are necessary to
30    effectuate  a  program  of  electronic funds transfer and the
31    requirements of this Section.
32        Any amount which is required to be shown or  reported  on
33    any  return  or  other document under this Act shall, if such
34    amount is not a whole-dollar  amount,  be  increased  to  the
 
                            -61-               LRB9206191SMdv
 1    nearest  whole-dollar amount in any case where the fractional
 2    part of a dollar is 50 cents or more, and  decreased  to  the
 3    nearest  whole-dollar  amount  where the fractional part of a
 4    dollar is less than 50 cents.
 5        If the retailer is otherwise required to file  a  monthly
 6    return and if the retailer's average monthly tax liability to
 7    the  Department  does  not  exceed  $200,  the Department may
 8    authorize his returns to be filed on a quarter annual  basis,
 9    with  the  return  for January, February and March of a given
10    year being due by April 20 of such year; with the return  for
11    April,  May  and June of a given year being due by July 20 of
12    such year; with the return for July, August and September  of
13    a  given  year being due by October 20 of such year, and with
14    the return for October, November and December of a given year
15    being due by January 20 of the following year.
16        If the retailer is otherwise required to file  a  monthly
17    or quarterly return and if the retailer's average monthly tax
18    liability  with  the  Department  does  not  exceed  $50, the
19    Department may authorize his returns to be filed on an annual
20    basis, with the return for a given year being due by  January
21    20 of the following year.
22        Such  quarter  annual  and annual returns, as to form and
23    substance, shall be  subject  to  the  same  requirements  as
24    monthly returns.
25        Notwithstanding   any   other   provision   in  this  Act
26    concerning the time within which  a  retailer  may  file  his
27    return, in the case of any retailer who ceases to engage in a
28    kind  of  business  which  makes  him  responsible for filing
29    returns under this Act, such  retailer  shall  file  a  final
30    return  under  this Act with the Department not more than one
31    month after discontinuing such business.
32        Where  the  same  person  has  more  than  one   business
33    registered  with  the Department under separate registrations
34    under this Act, such person may not file each return that  is
 
                            -62-               LRB9206191SMdv
 1    due   as   a  single  return  covering  all  such  registered
 2    businesses, but shall file separate  returns  for  each  such
 3    registered business.
 4        In  addition, 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 if,
11    in  the  same  transaction,  (i)  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  or  (ii)  a  retailer  of
16    aircraft,  watercraft,  motor vehicles, or trailers transfers
17    more than one aircraft, watercraft, motor vehicle, or trailer
18    to a purchaser for use  as  a  qualifying  rolling  stock  as
19    provided  in  Section  2-5  of this Act, then that seller may
20    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.  For  purposes  of  this  Section,  "watercraft"
24    means a Class 2, Class 3, or Class 4 watercraft as defined in
25    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
26    personal watercraft, or any boat  equipped  with  an  inboard
27    motor.
28        Any  retailer  who sells only motor vehicles, watercraft,
29    aircraft, or trailers that are required to be registered with
30    an agency of this State, so that  all  retailers'  occupation
31    tax liability is required to be reported, and is reported, on
32    such  transaction  reporting returns and who is not otherwise
33    required to file monthly or quarterly returns, need not  file
34    monthly or quarterly returns.  However, those retailers shall
 
                            -63-               LRB9206191SMdv
 1    be required to file returns on an annual basis.
 2        The  transaction  reporting  return, in the case of motor
 3    vehicles or trailers that are required to be registered  with
 4    an  agency  of  this State, shall be the same document as the
 5    Uniform Invoice referred to in Section 5-402 of The  Illinois
 6    Vehicle  Code  and  must  show  the  name  and address of the
 7    seller; the name and address of the purchaser; the amount  of
 8    the  selling  price  including  the  amount  allowed  by  the
 9    retailer  for  traded-in property, if any; the amount allowed
10    by the retailer for the traded-in tangible personal property,
11    if any, to the extent to which Section 1 of this  Act  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  retailer
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; such other information as is required in
21    Section 5-402 of The Illinois Vehicle Code,  and  such  other
22    information as the Department may reasonably require.
23        The   transaction   reporting   return  in  the  case  of
24    watercraft or aircraft must show the name and address of  the
25    seller;  the name and address of the purchaser; the amount of
26    the  selling  price  including  the  amount  allowed  by  the
27    retailer for traded-in property, if any; the  amount  allowed
28    by the retailer for the traded-in tangible personal property,
29    if  any,  to the extent to which Section 1 of this Act allows
30    an exemption for the value of traded-in property; the balance
31    payable after deducting  such  trade-in  allowance  from  the
32    total  selling price; the amount of tax due from the retailer
33    with respect to such transaction; the amount of tax collected
34    from the purchaser by the retailer on  such  transaction  (or
 
                            -64-               LRB9206191SMdv
 1    satisfactory  evidence  that  such  tax  is  not  due in that
 2    particular instance, if that is claimed to be the fact);  the
 3    place  and  date  of the sale, a sufficient identification of
 4    the  property  sold,  and  such  other  information  as   the
 5    Department may reasonably require.
 6        Such  transaction  reporting  return  shall  be filed not
 7    later than 20 days after the day of delivery of the item that
 8    is being sold, but may be filed by the retailer at  any  time
 9    sooner  than  that  if  he chooses to do so.  The transaction
10    reporting return and tax remittance  or  proof  of  exemption
11    from   the  Illinois  use  tax  may  be  transmitted  to  the
12    Department by way of the State agency with  which,  or  State
13    officer  with  whom  the  tangible  personal property must be
14    titled or registered (if titling or registration is required)
15    if the Department and such agency or State officer  determine
16    that   this   procedure   will  expedite  the  processing  of
17    applications for title or registration.
18        With each such transaction reporting return, the retailer
19    shall remit the proper amount of tax  due  (or  shall  submit
20    satisfactory evidence that the sale is not taxable if that is
21    the  case),  to  the  Department or its agents, whereupon the
22    Department shall issue, in the purchaser's name,  a  use  tax
23    receipt  (or  a certificate of exemption if the Department is
24    satisfied that the particular sale is tax exempt) which  such
25    purchaser  may  submit  to  the  agency  with which, or State
26    officer with whom, he must title  or  register  the  tangible
27    personal   property   that   is   involved   (if  titling  or
28    registration is required)  in  support  of  such  purchaser's
29    application  for an Illinois certificate or other evidence of
30    title or registration to such tangible personal property.
31        No retailer's failure or refusal to remit tax under  this
32    Act  precludes  a  user,  who  has paid the proper tax to the
33    retailer, from obtaining his certificate of  title  or  other
34    evidence of title or registration (if titling or registration
 
                            -65-               LRB9206191SMdv
 1    is  required)  upon  satisfying the Department that such user
 2    has paid the proper tax (if tax is due) to the retailer.  The
 3    Department shall adopt appropriate rules  to  carry  out  the
 4    mandate of this paragraph.
 5        If  the  user who would otherwise pay tax to the retailer
 6    wants the transaction reporting return filed and the  payment
 7    of  the  tax  or  proof  of  exemption made to the Department
 8    before the retailer is willing to take these actions and such
 9    user has not paid the tax to  the  retailer,  such  user  may
10    certify  to  the  fact  of such delay by the retailer and may
11    (upon the Department being satisfied of  the  truth  of  such
12    certification)  transmit  the  information  required  by  the
13    transaction  reporting  return  and the remittance for tax or
14    proof of exemption directly to the Department and obtain  his
15    tax  receipt  or  exemption determination, in which event the
16    transaction reporting return and tax  remittance  (if  a  tax
17    payment  was required) shall be credited by the Department to
18    the  proper  retailer's  account  with  the  Department,  but
19    without the 2.1% or  1.75%  discount  provided  for  in  this
20    Section  being  allowed.  When the user pays the tax directly
21    to the Department, he shall pay the tax in  the  same  amount
22    and in the same form in which it would be remitted if the tax
23    had been remitted to the Department by the retailer.
24        Refunds  made  by  the seller during the preceding return
25    period  to  purchasers,  on  account  of  tangible   personal
26    property  returned  to  the  seller,  shall  be  allowed as a
27    deduction under subdivision 5 of  his  monthly  or  quarterly
28    return,   as  the  case  may  be,  in  case  the  seller  had
29    theretofore included the  receipts  from  the  sale  of  such
30    tangible  personal  property in a return filed by him and had
31    paid the tax  imposed  by  this  Act  with  respect  to  such
32    receipts.
33        Where  the  seller  is a corporation, the return filed on
34    behalf of such corporation shall be signed by the  president,
 
                            -66-               LRB9206191SMdv
 1    vice-president,  secretary  or  treasurer  or by the properly
 2    accredited agent of such corporation.
 3        Where the seller is  a  limited  liability  company,  the
 4    return filed on behalf of the limited liability company shall
 5    be  signed by a manager, member, or properly accredited agent
 6    of the limited liability company.
 7        Except as provided in this Section, the  retailer  filing
 8    the  return  under  this Section shall, at the time of filing
 9    such return, pay to the Department the amount of tax  imposed
10    by  this Act less a discount of 2.1% prior to January 1, 1990
11    and 1.75% on and after January 1, 1990, or  $5  per  calendar
12    year, whichever is greater, which is allowed to reimburse the
13    retailer  for  the  expenses  incurred  in  keeping  records,
14    preparing and filing returns, remitting the tax and supplying
15    data  to  the  Department  on  request.   Any prepayment made
16    pursuant to Section 2d of this Act shall be included  in  the
17    amount  on which such 2.1% or 1.75% discount is computed.  In
18    the case of retailers  who  report  and  pay  the  tax  on  a
19    transaction   by  transaction  basis,  as  provided  in  this
20    Section, such discount shall be  taken  with  each  such  tax
21    remittance  instead  of when such retailer files his periodic
22    return.
23        Before October 1, 2000, if the taxpayer's average monthly
24    tax liability to the Department under this Act, the  Use  Tax
25    Act,  the Service Occupation Tax Act, and the Service Use Tax
26    Act, excluding any liability for  prepaid  sales  tax  to  be
27    remitted  in  accordance  with  Section  2d  of this Act, was
28    $10,000 or more during  the  preceding  4  complete  calendar
29    quarters,  he  shall  file  a return with the Department each
30    month by the 20th day of the month next following  the  month
31    during  which  such  tax liability is incurred and shall make
32    payments to the Department on or before the 7th,  15th,  22nd
33    and  last  day  of  the  month during which such liability is
34    incurred. On and after October 1,  2000,  if  the  taxpayer's
 
                            -67-               LRB9206191SMdv
 1    average  monthly  tax  liability to the Department under this
 2    Act, the Use Tax Act, the Service Occupation Tax Act, and the
 3    Service Use Tax Act,  excluding  any  liability  for  prepaid
 4    sales  tax  to  be  remitted in accordance with Section 2d of
 5    this Act, was $20,000 or more during the preceding 4 complete
 6    calendar quarters, he shall file a return with the Department
 7    each month by the 20th day of the month  next  following  the
 8    month  during  which such tax liability is incurred and shall
 9    make payment to the Department on or before  the  7th,  15th,
10    22nd and last day of the month during which such liability is
11    incurred.    If  the month during which such tax liability is
12    incurred began prior to January 1, 1985, each  payment  shall
13    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
14    liability for the month or an amount set  by  the  Department
15    not  to  exceed  1/4  of the average monthly liability of the
16    taxpayer to the  Department  for  the  preceding  4  complete
17    calendar  quarters  (excluding the month of highest liability
18    and the month of lowest liability in such 4 quarter  period).
19    If  the  month  during  which  such tax liability is incurred
20    begins on or after January 1, 1985 and prior  to  January  1,
21    1987,  each  payment  shall be in an amount equal to 22.5% of
22    the taxpayer's actual liability for the month or 27.5% of the
23    taxpayer's liability for  the  same  calendar  month  of  the
24    preceding year.  If the month during which such tax liability
25    is  incurred  begins on or after January 1, 1987 and prior to
26    January 1, 1988, each payment shall be in an amount equal  to
27    22.5%  of  the  taxpayer's  actual liability for the month or
28    26.25% of the taxpayer's  liability  for  the  same  calendar
29    month  of the preceding year.  If the month during which such
30    tax liability is incurred begins on or after January 1, 1988,
31    and prior to January 1, 1989, or begins on or  after  January
32    1, 1996, each payment shall be in an amount equal to 22.5% of
33    the  taxpayer's  actual liability for the month or 25% of the
34    taxpayer's liability for  the  same  calendar  month  of  the
 
                            -68-               LRB9206191SMdv
 1    preceding  year. If the month during which such tax liability
 2    is incurred begins on or after January 1, 1989, and prior  to
 3    January  1, 1996, each payment shall be in an amount equal to
 4    22.5% of the taxpayer's actual liability for the month or 25%
 5    of the taxpayer's liability for the same  calendar  month  of
 6    the preceding year or 100% of the taxpayer's actual liability
 7    for the quarter monthly reporting period.  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.
10    Before  October  1, 2000, once applicable, the requirement of
11    the making of quarter monthly payments to the  Department  by
12    taxpayers  having an average monthly tax liability of $10,000
13    or more as determined in  the  manner  provided  above  shall
14    continue  until  such taxpayer's average monthly liability to
15    the Department  during  the  preceding  4  complete  calendar
16    quarters  (excluding  the  month of highest liability and the
17    month of lowest liability) is less than $9,000, or until such
18    taxpayer's average monthly liability  to  the  Department  as
19    computed  for  each  calendar  quarter  of  the  4  preceding
20    complete  calendar  quarter  period  is  less  than  $10,000.
21    However,  if  a  taxpayer  can  show  the  Department  that a
22    substantial change in the taxpayer's  business  has  occurred
23    which  causes  the  taxpayer  to  anticipate that his average
24    monthly tax liability for the reasonably  foreseeable  future
25    will fall below the $10,000 threshold stated above, then such
26    taxpayer  may  petition  the  Department for a change in such
27    taxpayer's reporting status.  On and after October  1,  2000,
28    once  applicable,  the  requirement  of the making of quarter
29    monthly payments to the Department  by  taxpayers  having  an
30    average   monthly   tax  liability  of  $20,000  or  more  as
31    determined in the manner provided above shall continue  until
32    such  taxpayer's  average monthly liability to the Department
33    during the preceding 4 complete calendar quarters  (excluding
34    the  month  of  highest  liability  and  the  month of lowest
 
                            -69-               LRB9206191SMdv
 1    liability) is less than  $19,000  or  until  such  taxpayer's
 2    average  monthly  liability to the Department as computed for
 3    each calendar quarter of the 4  preceding  complete  calendar
 4    quarter  period is less than $20,000.  However, if a taxpayer
 5    can show the Department that  a  substantial  change  in  the
 6    taxpayer's business has occurred which causes the taxpayer to
 7    anticipate  that  his  average  monthly tax liability for the
 8    reasonably foreseeable future will  fall  below  the  $20,000
 9    threshold  stated  above, then such taxpayer may petition the
10    Department for a change in such taxpayer's reporting  status.
11    The  Department shall change such taxpayer's reporting status
12    unless it finds that such change is seasonal  in  nature  and
13    not  likely  to  be  long  term.  If any such quarter monthly
14    payment is not paid at the time or in the amount required  by
15    this Section, then the taxpayer shall be liable for penalties
16    and interest on the difference between the minimum amount due
17    as  a  payment and the amount of such quarter monthly payment
18    actually and timely paid, except insofar as the taxpayer  has
19    previously  made payments for that month to the Department in
20    excess of the minimum payments previously due as provided  in
21    this  Section. The Department shall make reasonable rules and
22    regulations to govern the quarter monthly payment amount  and
23    quarter monthly payment dates for taxpayers who file on other
24    than a calendar monthly basis.
25        Without  regard to whether a taxpayer is required to make
26    quarter monthly payments as specified above, any taxpayer who
27    is required by Section 2d of this Act to  collect  and  remit
28    prepaid  taxes  and has collected prepaid taxes which average
29    in excess  of  $25,000  per  month  during  the  preceding  2
30    complete  calendar  quarters,  shall  file  a return with the
31    Department as required by Section 2f and shall make  payments
32    to  the  Department on or before the 7th, 15th, 22nd and last
33    day of the month during which such liability is incurred.  If
34    the month during which such tax liability is  incurred  began
 
                            -70-               LRB9206191SMdv
 1    prior  to  the effective date of this amendatory Act of 1985,
 2    each payment shall be in an amount not less than 22.5% of the
 3    taxpayer's actual liability under Section 2d.  If  the  month
 4    during  which  such  tax  liability  is incurred begins on or
 5    after January 1, 1986, each payment shall  be  in  an  amount
 6    equal  to  22.5%  of  the taxpayer's actual liability for the
 7    month or 27.5% of  the  taxpayer's  liability  for  the  same
 8    calendar  month of the preceding calendar year.  If the month
 9    during which such tax liability  is  incurred  begins  on  or
10    after  January  1,  1987,  each payment shall be in an amount
11    equal to 22.5% of the taxpayer's  actual  liability  for  the
12    month  or  26.25%  of  the  taxpayer's liability for the same
13    calendar month of the preceding year.   The  amount  of  such
14    quarter  monthly payments shall be credited against the final
15    tax liability of the taxpayer's return for that  month  filed
16    under  this  Section or Section 2f, as the case may be.  Once
17    applicable, the requirement of the making of quarter  monthly
18    payments  to  the Department pursuant to this paragraph shall
19    continue until such taxpayer's average  monthly  prepaid  tax
20    collections during the preceding 2 complete calendar quarters
21    is  $25,000  or less.  If any such quarter monthly payment is
22    not paid at the time or in the amount required, the  taxpayer
23    shall   be   liable   for  penalties  and  interest  on  such
24    difference, except insofar as  the  taxpayer  has  previously
25    made  payments  for  that  month  in  excess  of  the minimum
26    payments previously due.
27        If any payment provided for in this Section  exceeds  the
28    taxpayer's  liabilities  under this Act, the Use Tax Act, the
29    Service Occupation Tax Act and the Service Use  Tax  Act,  as
30    shown on an original monthly return, the Department shall, if
31    requested  by  the  taxpayer,  issue to the taxpayer a credit
32    memorandum no later than 30 days after the date  of  payment.
33    The  credit  evidenced  by  such  credit  memorandum  may  be
34    assigned  by  the  taxpayer  to a similar taxpayer under this
 
                            -71-               LRB9206191SMdv
 1    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
 2    Service  Use Tax Act, in accordance with reasonable rules and
 3    regulations to be prescribed by the Department.  If  no  such
 4    request  is made, the taxpayer may credit such excess payment
 5    against tax liability subsequently  to  be  remitted  to  the
 6    Department  under  this  Act,  the  Use  Tax Act, the Service
 7    Occupation Tax Act or the Service Use Tax Act, in  accordance
 8    with  reasonable  rules  and  regulations  prescribed  by the
 9    Department.  If the Department subsequently  determined  that
10    all  or  any part of the credit taken was not actually due to
11    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
12    shall be reduced by 2.1% or 1.75% of the  difference  between
13    the  credit  taken  and  that actually due, and that taxpayer
14    shall  be  liable  for  penalties  and   interest   on   such
15    difference.
16        If a retailer of motor fuel is entitled to a credit under
17    Section 2d of this Act which exceeds the taxpayer's liability
18    to  the  Department  under  this  Act for the month which the
19    taxpayer is filing a return, the Department shall  issue  the
20    taxpayer a credit memorandum for the excess.
21        Beginning  January  1,  1990,  each  month the Department
22    shall pay into the Local Government Tax Fund, a special  fund
23    in  the  State  treasury  which  is  hereby  created, the net
24    revenue realized for the preceding month from the 1%  tax  on
25    sales  of  food for human consumption which is to be consumed
26    off the premises where  it  is  sold  (other  than  alcoholic
27    beverages,  soft  drinks and food which has been prepared for
28    immediate consumption) and prescription  and  nonprescription
29    medicines,  drugs,  medical  appliances  and  insulin,  urine
30    testing materials, syringes and needles used by diabetics.
31        Beginning  January  1,  1990,  each  month the Department
32    shall pay into the County and Mass Transit District  Fund,  a
33    special  fund  in the State treasury which is hereby created,
34    4% of the net revenue realized for the preceding  month  from
 
                            -72-               LRB9206191SMdv
 1    the 6.25% general rate.
 2        Beginning August 1, 2000, each month the Department shall
 3    pay into the County and Mass Transit District Fund 20% of the
 4    net  revenue  realized for the preceding month from the 1.25%
 5    rate on the selling price of motor fuel and gasohol.
 6        Each September the Department shall pay into  the  County
 7    and  Mass  Transit  District  Fund  20%  of  the  net revenue
 8    realized for the preceding  month  from  the  1.25%  rate  on
 9    "school supplies" as defined in Section 2-10 this Act.
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.
15        Beginning August 1, 2000, each month the Department shall
16    pay into the Local Government Tax Fund 80% of the net revenue
17    realized  for  the preceding month from the 1.25% rate on the
18    selling price of motor fuel and gasohol.
19        Each September the Department shall pay  into  the  Local
20    Government  Tax  Fund 80% of the net revenue realized for the
21    preceding month from the 1.25% rate on "school  supplies"  as
22    defined in Section 2-10 of this Act.
23        Of the remainder of the moneys received by the Department
24    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
25    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
26    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
27    into the Build Illinois Fund; provided, however, that  if  in
28    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
29    as  the case may be, of the moneys received by the Department
30    and required to be paid into the Build Illinois Fund pursuant
31    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
32    Service  Use Tax Act, and Section 9 of the Service Occupation
33    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
34    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
 
                            -73-               LRB9206191SMdv
 1    moneys being hereinafter called the "Tax Act Amount", and (2)
 2    the amount transferred to the Build Illinois  Fund  from  the
 3    State  and Local Sales Tax Reform Fund shall be less than the
 4    Annual Specified Amount (as hereinafter defined),  an  amount
 5    equal  to  the  difference shall be immediately paid into the
 6    Build  Illinois  Fund  from  other  moneys  received  by  the
 7    Department pursuant to the Tax Acts;  the  "Annual  Specified
 8    Amount"  means  the  amounts specified below for fiscal years
 9    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 Act 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  Act  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 the Tax Acts; and, further provided,
32    that in no  event  shall  the  payments  required  under  the
33    preceding proviso result in aggregate payments into the Build
34    Illinois Fund pursuant to this clause (b) for any fiscal year
 
                            -74-               LRB9206191SMdv
 1    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
 2    the Annual  Specified  Amount  for  such  fiscal  year.   The
 3    amounts payable into the Build Illinois Fund under clause (b)
 4    of the first sentence in this paragraph shall be payable only
 5    until such time as the aggregate amount on deposit under each
 6    trust   indenture   securing  Bonds  issued  and  outstanding
 7    pursuant to the Build Illinois Bond Act is sufficient, taking
 8    into account any future investment income, to fully  provide,
 9    in  accordance  with such indenture, for the defeasance of or
10    the payment  of  the  principal  of,  premium,  if  any,  and
11    interest  on  the  Bonds secured by such indenture and on any
12    Bonds expected to be issued thereafter and all fees and costs
13    payable  with  respect  thereto,  all  as  certified  by  the
14    Director of the  Bureau  of  the  Budget.   If  on  the  last
15    business  day  of  any  month  in which Bonds are outstanding
16    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
17    moneys  deposited  in  the Build Illinois Bond Account in the
18    Build Illinois Fund in such month  shall  be  less  than  the
19    amount  required  to  be  transferred  in such month from the
20    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
21    Retirement  and  Interest  Fund pursuant to Section 13 of the
22    Build Illinois Bond Act, an amount equal to  such  deficiency
23    shall  be  immediately paid from other moneys received by the
24    Department pursuant to the Tax Acts  to  the  Build  Illinois
25    Fund;  provided,  however, that any amounts paid to the Build
26    Illinois Fund in any fiscal year pursuant  to  this  sentence
27    shall be deemed to constitute payments pursuant to clause (b)
28    of  the first sentence of this paragraph and shall reduce the
29    amount otherwise payable for such  fiscal  year  pursuant  to
30    that  clause  (b).   The  moneys  received  by the Department
31    pursuant to this Act and required to be  deposited  into  the
32    Build  Illinois  Fund  are  subject  to the pledge, claim and
33    charge set forth in Section 12 of  the  Build  Illinois  Bond
34    Act.
 
                            -75-               LRB9206191SMdv
 1        Subject  to  payment  of  amounts into the Build Illinois
 2    Fund as  provided  in  the  preceding  paragraph  or  in  any
 3    amendment  thereto hereafter enacted, the following specified
 4    monthly  installment  of  the   amount   requested   in   the
 5    certificate  of  the  Chairman  of  the Metropolitan Pier and
 6    Exposition Authority provided  under  Section  8.25f  of  the
 7    State  Finance  Act,  but not in excess of sums designated as
 8    "Total Deposit", shall be deposited  in  the  aggregate  from
 9    collections  under Section 9 of the Use Tax Act, Section 9 of
10    the Service Use Tax Act, Section 9 of the Service  Occupation
11    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
12    into the  McCormick  Place  Expansion  Project  Fund  in  the
13    specified fiscal years.
14             Fiscal Year                   Total Deposit
15                 1993                            $0
16                 1994                        53,000,000
17                 1995                        58,000,000
18                 1996                        61,000,000
19                 1997                        64,000,000
20                 1998                        68,000,000
21                 1999                        71,000,000
22                 2000                        75,000,000
23                 2001                        80,000,000
24                 2002                        84,000,000
25                 2003                        89,000,000
26                 2004                        93,000,000
27                 2005                        97,000,000
28                 2006                       102,000,000
29                 2007                       108,000,000
30                 2008                       115,000,000
31                 2009                       120,000,000
32                 2010                       126,000,000
33                 2011                       132,000,000
34                 2012                       138,000,000
 
                            -76-               LRB9206191SMdv
 1                 2013 and                   145,000,000
 2        each fiscal year
 3        thereafter that bonds
 4        are outstanding under
 5        Section 13.2 of the
 6        Metropolitan Pier and
 7        Exposition Authority
 8        Act, but not after fiscal year 2029.
 9        Beginning  July 20, 1993 and in each month of each fiscal
10    year thereafter, one-eighth of the amount  requested  in  the
11    certificate  of  the  Chairman  of  the Metropolitan Pier and
12    Exposition Authority for that fiscal year,  less  the  amount
13    deposited  into the McCormick Place Expansion Project Fund by
14    the State Treasurer in the respective month under  subsection
15    (g)  of  Section  13  of the Metropolitan Pier and Exposition
16    Authority Act, plus cumulative deficiencies in  the  deposits
17    required  under  this  Section for previous months and years,
18    shall be deposited into the McCormick Place Expansion Project
19    Fund, until the full amount requested for  the  fiscal  year,
20    but  not  in  excess  of the amount specified above as "Total
21    Deposit", has been deposited.
22        Subject to payment of amounts  into  the  Build  Illinois
23    Fund  and the McCormick Place Expansion Project Fund pursuant
24    to the preceding  paragraphs  or  in  any  amendment  thereto
25    hereafter  enacted,  each month the Department shall pay into
26    the Local  Government  Distributive  Fund  0.4%  of  the  net
27    revenue  realized for the preceding month from the 5% general
28    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
29    preceding  month from the 6.25% general rate, as the case may
30    be, on the selling price of tangible personal property  which
31    amount  shall,  subject  to  appropriation, be distributed as
32    provided in Section 2 of the State Revenue Sharing  Act.   No
33    payments or distributions pursuant to this paragraph shall be
34    made  if  the  tax  imposed  by  this  Act on photoprocessing
 
                            -77-               LRB9206191SMdv
 1    products is declared unconstitutional,  or  if  the  proceeds
 2    from  such  tax  are  unavailable for distribution because of
 3    litigation.
 4        Subject to payment of amounts  into  the  Build  Illinois
 5    Fund,  the McCormick Place Expansion Project to the preceding
 6    paragraphs or in any amendments  thereto  hereafter  enacted,
 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  this  Act,  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        The  Department  may,  upon  separate written notice to a
19    taxpayer, require the taxpayer to prepare and file  with  the
20    Department  on a form prescribed by the Department within not
21    less than 60 days after  receipt  of  the  notice  an  annual
22    information  return for the tax year specified in the notice.
23    Such  annual  return  to  the  Department  shall  include   a
24    statement  of  gross receipts as shown by the retailer's last
25    Federal income tax return.  If  the  total  receipts  of  the
26    business  as reported in the Federal income tax return do not
27    agree with the gross receipts reported to the  Department  of
28    Revenue for the same period, the retailer shall attach to his
29    annual  return  a  schedule showing a reconciliation of the 2
30    amounts and the reasons for the difference.   The  retailer's
31    annual  return to the Department shall also disclose the cost
32    of goods sold by the retailer during the year covered by such
33    return, opening and closing inventories  of  such  goods  for
34    such year, costs of goods used from stock or taken from stock
 
                            -78-               LRB9206191SMdv
 1    and  given  away  by  the  retailer during such year, payroll
 2    information of the retailer's business during such  year  and
 3    any  additional  reasonable  information which the Department
 4    deems would be helpful in determining  the  accuracy  of  the
 5    monthly,  quarterly  or annual returns filed by such retailer
 6    as provided for in this Section.
 7        If the annual information return required by this Section
 8    is not filed when and as  required,  the  taxpayer  shall  be
 9    liable as follows:
10             (i)  Until  January  1,  1994, the taxpayer shall be
11        liable for a penalty equal to 1/6 of 1% of  the  tax  due
12        from such taxpayer under this Act during the period to be
13        covered  by  the annual return for each month or fraction
14        of a month until such return is filed  as  required,  the
15        penalty  to  be assessed and collected in the same manner
16        as any other penalty provided for in this Act.
17             (ii)  On and after January  1,  1994,  the  taxpayer
18        shall be liable for a penalty as described in Section 3-4
19        of the Uniform Penalty and Interest Act.
20        The chief executive officer, proprietor, owner or highest
21    ranking  manager  shall sign the annual return to certify the
22    accuracy of the information contained therein.    Any  person
23    who  willfully  signs  the  annual return containing false or
24    inaccurate  information  shall  be  guilty  of  perjury   and
25    punished  accordingly.   The annual return form prescribed by
26    the Department  shall  include  a  warning  that  the  person
27    signing the return may be liable for perjury.
28        The  provisions  of this Section concerning the filing of
29    an annual information return do not apply to a  retailer  who
30    is  not required to file an income tax return with the United
31    States Government.
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
 
                            -79-               LRB9206191SMdv
 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  Act  for  the  second preceding month.
 4    Beginning April 1, 2000, this transfer is no longer  required
 5    and shall not be made.
 6        Net  revenue  realized  for  a month shall be the revenue
 7    collected by the State pursuant to this Act, less the  amount
 8    paid  out  during  that  month  as  refunds  to taxpayers for
 9    overpayment of liability.
10        For greater simplicity of administration,  manufacturers,
11    importers  and  wholesalers whose products are sold at retail
12    in Illinois by numerous retailers, and who wish to do so, may
13    assume the responsibility for accounting and  paying  to  the
14    Department  all  tax  accruing under this Act with respect to
15    such sales, if the retailers who are  affected  do  not  make
16    written objection to the Department to this arrangement.
17        Any  person  who  promotes,  organizes,  provides  retail
18    selling  space  for concessionaires or other types of sellers
19    at the Illinois State Fair, DuQuoin State Fair, county fairs,
20    local fairs, art shows, flea markets and similar  exhibitions
21    or  events,  including  any  transient merchant as defined by
22    Section 2 of the Transient Merchant Act of 1987, is  required
23    to  file  a  report with the Department providing the name of
24    the merchant's business, the name of the  person  or  persons
25    engaged  in  merchant's  business,  the permanent address and
26    Illinois Retailers Occupation Tax Registration Number of  the
27    merchant,  the  dates  and  location  of  the event and other
28    reasonable information that the Department may require.   The
29    report must be filed not later than the 20th day of the month
30    next  following  the month during which the event with retail
31    sales was held.  Any  person  who  fails  to  file  a  report
32    required  by  this  Section commits a business offense and is
33    subject to a fine not to exceed $250.
34        Any person engaged in the business  of  selling  tangible
 
                            -80-               LRB9206191SMdv
 1    personal property at retail as a concessionaire or other type
 2    of  seller  at  the  Illinois  State  Fair, county fairs, art
 3    shows, flea markets and similar exhibitions or events, or any
 4    transient merchants, as defined by Section 2 of the Transient
 5    Merchant Act of 1987, may be required to make a daily  report
 6    of  the  amount of such sales to the Department and to make a
 7    daily payment of the full amount of tax due.  The  Department
 8    shall  impose  this requirement when it finds that there is a
 9    significant risk of loss of revenue to the State at  such  an
10    exhibition  or  event.   Such  a  finding  shall  be based on
11    evidence that a  substantial  number  of  concessionaires  or
12    other  sellers  who  are  not  residents  of Illinois will be
13    engaging  in  the  business  of  selling  tangible   personal
14    property  at  retail  at  the  exhibition  or event, or other
15    evidence of a significant risk of  loss  of  revenue  to  the
16    State.  The Department shall notify concessionaires and other
17    sellers  affected  by the imposition of this requirement.  In
18    the  absence  of  notification   by   the   Department,   the
19    concessionaires and other sellers shall file their returns as
20    otherwise required in this Section.
21    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
22    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
23    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
24    eff. 1-1-01; revised 8-30-00.)

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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