State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]


92_HB1599enr

 
HB1599 Enrolled                                LRB9207178TAcs

 1        AN ACT regarding Illinois resource development and energy
 2    security.

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

 5        Section  1.   Short  title.  This Act may be cited as the
 6    Illinois Resource Development and Energy Security Act.

 7        Section 5.  Findings.  The General Assembly finds that:
 8        (a)  Growth of the State's population and  economic  base
 9    has  created  a  need for new electric generation capacity in
10    Illinois.
11        (b)  Illinois has considerable natural resources that are
12    currently underutilized and could support development of  new
13    electric power at an affordable price.
14        (c)  The  development of new electric generating capacity
15    is needed if the State is to continue  to  be  successful  in
16    attracting new businesses and jobs.
17        (d)  Certain  regions  of  the  State,  such  as Southern
18    Illinois,  could  benefit   greatly   from   new   employment
19    opportunities  created  by development of electric generating
20    plants utilizing the plentiful supply of Illinois coal.
21        (e)  Technology can be deployed that  allows  high-sulfur
22    Illinois  coal  to be burned efficiently while meeting strict
23    State and federal air quality limitations. Specifically,  the
24    State  of  Illinois  will encourage the use of advanced clean
25    coal technology, such as coal gasification.
26        (f)  Renewable forms of energy should be promoted  as  an
27    important element of the energy and environmental policies of
28    the  State  and it is a goal of the State that at least 5% of
29    the  State's  energy  production  and  use  be  derived  from
30    renewable forms of energy by  2010  and  at  least  15%  from
31    renewable forms of energy by 2020.
 
HB1599 Enrolled            -2-                 LRB9207178TAcs
 1        Section 10.  Definitions.  As used in this Act:
 2        "Department"  means  the  Illinois Department of Commerce
 3    and Community Affairs.

 4        Section 15.  Purpose.  The  State  of  Illinois  and  its
 5    people  will  benefit  for many years to come if new electric
 6    generating facilities are built that  increase  the  in-State
 7    capacity  to  provide for current and anticipated electricity
 8    demand at a competitive price.  The purpose of this Act is to
 9    enhance the State's energy security by ensuring that: (i) the
10    State's vast and underutilized coal resources are tapped as a
11    fuel source  for  new  electric  plants;  (ii)  the  electric
12    transmission  system  within  the  State  is upgraded to more
13    efficiently distribute  additional  amounts  of  electricity;
14    (iii) well-paying jobs are created as new electric plants are
15    built   in   regions   of  the  State  with  relatively  high
16    unemployment; and  (iv)  pilot  projects  are  undertaken  to
17    explore  the  capacity  of  new,  often  renewable sources of
18    energy to contribute to the State's energy security.

19        Section 20.  Rules.   The  Department  is  authorized  to
20    adopt  rules necessary to administer the requirements of this
21    Act.  The Department may implement this Act through  the  use
22    of  emergency  rules  in  accordance  with  the provisions of
23    Section 5-45 of the Illinois  Administrative  Procedure  Act.
24    For  purposes  of  the Illinois Administrative Procedure Act,
25    the adoption of rules to implement this Act shall  be  deemed
26    an  emergency  and necessary for the public interest, safety,
27    and welfare.

28        Section 905.  The Department of  Commerce  and  Community
29    Affairs  Law  of the Civil Administrative Code of Illinois is
30    amended by adding Section 605-332 as follows:
 
HB1599 Enrolled            -3-                 LRB9207178TAcs
 1        (20 ILCS 605/605-332 new)
 2        Sec. 605-332.  Financial assistance to energy  generation
 3    facilities.
 4        (a)  As used in this Section:
 5        "New    electric    generating    facility"    means    a
 6    newly-constructed   electric  generation  plant  or  a  newly
 7    constructed generation  capacity  expansion  at  an  existing
 8    facility,  including  the  transmission  lines and associated
 9    equipment that transfers electricity from points of supply to
10    points of delivery, and  for  which  foundation  construction
11    commenced  not sooner than July 1, 2001, which is designed to
12    provide  baseload  electric   generation   operating   on   a
13    continuous  basis  throughout  the  year;  and  which  has an
14    aggregate rated generating capacity of at least 400 megawatts
15    for all new units at one site, uses  coal  or  gases  derived
16    from  coal  as  its  primary  fuel  source,  and supports the
17    creation of at least 150 new Illinois coal mining jobs.
18        "Eligible business" means  an  entity  that  proposes  to
19    construct  a  new  electric  generating facility and that has
20    applied to the Department  to  receive  financial  assistance
21    pursuant  to this Section. With respect to use and occupation
22    taxes, wherever there is a reference to taxes, that reference
23    means only those taxes paid on Illinois-mined coal used in  a
24    new electric generating facility.
25        "Department"  means  the  Illinois Department of Commerce
26    and Community Affairs.
27        (b)  The Department is authorized  to  provide  financial
28    assistance to eligible businesses for new electric generating
29    facilities from funds appropriated by the General Assembly as
30    further provided in this Section.
31        An  eligible business seeking qualification for financial
32    assistance  for  a  new  electric  generating  facility,  for
33    purposes of this Section only, shall apply to the  Department
34    in  the  manner  specified by the Department.  An application
 
HB1599 Enrolled            -4-                 LRB9207178TAcs
 1    shall include, but not be limited to:
 2             (1)  the  completion  date  of  the   new   electric
 3        generating  facility  for  which  financial assistance is
 4        sought;
 5             (2)  copies of documentation  deemed  acceptable  by
 6        the  Department  establishing  the total State occupation
 7        and use taxes paid on Illinois-mined coal used at the new
 8        electric generating facility for a minimum of 4 preceding
 9        calendar quarters; and
10             (3)  the  amount  of  capital  investment   by   the
11        eligible   business   in   the  new  electric  generating
12        facility.
13        The Department shall  determine  the  maximum  amount  of
14    financial  assistance  for  eligible businesses in accordance
15    with  this  paragraph.   The  Department  shall  not  provide
16    financial assistance from general obligation  bond  funds  to
17    any   eligible   business   unless   it  receives  a  written
18    certification from the Director of the Bureau of  the  Budget
19    that  80%  of the State occupation and use tax receipts for a
20    minimum of the preceding 4 calendar quarters for all eligible
21    businesses equal or exceed 110% of the  maximum  annual  debt
22    service  required  with  respect  to general obligation bonds
23    issued  for  that  purpose.   The  Department   may   provide
24    financial  assistance  not  to  exceed  the  amount  of State
25    general obligation debt calculated as above,  the  amount  of
26    capital  investment  in  the  energy  generation facility, or
27    $100,000,000,  whichever  is   less.   Financial   assistance
28    received  pursuant  to  this  Section may be used for capital
29    facilities  consisting  of  buildings,  structures,   durable
30    equipment, and land at the new electric generating facility.
31        An eligible business shall file a monthly report with the
32    Illinois   Department   of  Revenue  stating  the  amount  of
33    Illinois-mined coal purchased during the previous  month  for
34    use  in  the  new  electric generating facility, the purchase
 
HB1599 Enrolled            -5-                 LRB9207178TAcs
 1    price of that coal, the amount of State  occupation  and  use
 2    taxes   paid   on   that   purchase  to  the  seller  of  the
 3    Illinois-mined coal,  and  such  other  information  as  that
 4    Department    may    reasonably   require.    In   sales   of
 5    Illinois-mined coal between  related  parties,  the  purchase
 6    price of the coal must have been determined in an arms-length
 7    transaction.   The  report  shall  be filed with the Illinois
 8    Department of Revenue on or before the 20th day of each month
 9    on a form provided by that Department.   However,  no  report
10    need be filed by an eligible business in a month when it made
11    no  reportable  purchases  of coal in the previous month. The
12    Illinois Department of Revenue shall  provide  a  summary  of
13    such reports to the Bureau of the Budget.
14        Upon   granting   financial  assistance  to  an  eligible
15    business, the  Department  shall  certify  the  name  of  the
16    eligible  business  to  the  Illinois  Department of Revenue.
17    Beginning with the receipt  of  the  first  report  of  State
18    occupation  and  use  taxes  paid by an eligible business and
19    continuing for a 25-year period, the Illinois  Department  of
20    Revenue  shall  each month pay into the Energy Infrastructure
21    Fund 80% of the net revenue realized from the  6.25%  general
22    rate  on  the  selling  price of Illinois-mined coal that was
23    sold to an eligible business.

24        Section 910.  The Illinois Enterprise Zone Act is amended
25    by changing Section 5.5 as follows:

26        (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
27        Sec. 5.5.  High Impact Business.
28        (a)  In order  to  respond  to  unique  opportunities  to
29    assist   in   the   encouragement,  development,  growth  and
30    expansion  of  the  private  sector   through   large   scale
31    investment   and  development  projects,  the  Department  is
32    authorized  to  receive  and  approve  applications  for  the
 
HB1599 Enrolled            -6-                 LRB9207178TAcs
 1    designation of "High Impact Businesses" in  Illinois  subject
 2    to the following conditions:
 3             (1)  such  applications may be submitted at any time
 4        during the year;
 5             (2)  such business is not located, at  the  time  of
 6        designation, in an enterprise zone designated pursuant to
 7        this Act;
 8             (3) (A)  the  business  intends  to  make  a minimum
 9             investment of $12,000,000 which will  be  placed  in
10             service  in qualified property and intends to create
11             500  full-time  equivalent  jobs  at  a   designated
12             location  in  Illinois  or intends to make a minimum
13             investment of $30,000,000 which will  be  placed  in
14             service  in qualified property and intends to retain
15             1,500 full-time jobs at  a  designated  location  in
16             Illinois.  The business must certify in writing that
17             the investments would not be placed  in  service  in
18             qualified  property  and  the  job  creation  or job
19             retention would not occur without  the  tax  credits
20             and  exemptions  set forth in subsection (b) of this
21             Section.  The  terms   "placed   in   service"   and
22             "qualified  property"  have  the  same  meanings  as
23             described  in  subsection  (h) of Section 201 of the
24             Illinois Income Tax Act; or
25                  (B)  the business intends to  establish  a  new
26             electric   generating   facility   at  a  designated
27             location  in  Illinois.   "New  electric  generating
28             facility" for  purposes  of  this  Section  means  a
29             newly-constructed  electric  generation  plant  or a
30             newly-constructed generation capacity  expansion  at
31             an existing electric generation plant, including the
32             transmission  lines  and  associated  equipment that
33             transfers  electricity  from  points  of  supply  to
34             points  of  delivery,  and  for   which   such   new
 
HB1599 Enrolled            -7-                 LRB9207178TAcs
 1             foundation  construction  commenced  not sooner than
 2             July 1, 2001.  Such facility shall  be  designed  to
 3             provide   baseload  electric  generation  and  shall
 4             operate on a continuous basis throughout  the  year;
 5             and   shall   have  an  aggregate  rated  generating
 6             capacity of at least 1,000  megawatts  for  all  new
 7             units  at  one  site  if  it uses natural gas as its
 8             primary fuel  and  foundation  construction  of  the
 9             facility  is  commenced  on  or  before December 31,
10             2004, or shall have an  aggregate  rated  generating
11             capacity of at least 400 megawatts for all new units
12             at  one  site  if it uses coal or gases derived from
13             coal as its  primary  fuel  and  shall  support  the
14             creation  of  at  least 150 new Illinois coal mining
15             jobs.  The business must certify in writing that the
16             investments necessary to establish  a  new  electric
17             generating  facility  would not be placed in service
18             and the job creation in the case  of  a  coal-fueled
19             plant  would  not  occur without the tax credits and
20             exemptions set forth in  subsection  (b-5)  of  this
21             Section.   The term "placed in service" has the same
22             meaning as described in subsection  (h)  of  Section
23             201 of the Illinois Income Tax Act; or
24                  (C)  the    business   intends   to   establish
25             production  operations   at   a   new   coal   mine,
26             re-establish  production operations at a closed coal
27             mine, or expand production at an existing coal  mine
28             at a designated location in Illinois not sooner than
29             July   1,   2001;   provided   that  the  production
30             operations  result  in  the  creation  of  150   new
31             Illinois   coal   mining   jobs   as   described  in
32             subdivision (a)(3)(B) of this Section,  and  further
33             provided  that  the coal extracted from such mine is
34             utilized  as  the  predominant  source  for  a   new
 
HB1599 Enrolled            -8-                 LRB9207178TAcs
 1             electric  generating  facility.  The  business  must
 2             certify in writing that the investments necessary to
 3             establish  a  new,  expanded,  or reopened coal mine
 4             would not be placed in service and the job  creation
 5             would   not   occur  without  the  tax  credits  and
 6             exemptions set forth in  subsection  (b-5)  of  this
 7             Section.   The term "placed in service" has the same
 8             meaning as described in subsection  (h)  of  Section
 9             201 of the Illinois Income Tax Act; or
10                  (D)  the  business  intends  to  construct  new
11             transmission    facilities   or   upgrade   existing
12             transmission facilities at designated  locations  in
13             Illinois,   for  which  construction  commenced  not
14             sooner than July 1, 2001.  For the purposes of  this
15             Section,     "transmission     facilities"     means
16             transmission  lines  with  a  voltage  rating of 115
17             kilovolts or above, including associated  equipment,
18             that  transfer  electricity from points of supply to
19             points of delivery and that transmit a  majority  of
20             the   electricity   generated   by  a  new  electric
21             generating facility  designated  as  a  High  Impact
22             Business  in  accordance  with  this  Section.   The
23             business   must   certify   in   writing   that  the
24             investments necessary to construct new  transmission
25             facilities    or   upgrade   existing   transmission
26             facilities would not be placed  in  service  without
27             the   tax   credits  and  exemptions  set  forth  in
28             subsection (b-5) of this Section.  The term  "placed
29             in  service"  has  the  same meaning as described in
30             subsection (h) of Section 201 of the Illinois Income
31             Tax Act; and
32             (4)  no later than 90 days after an  application  is
33        submitted,  the  Department shall notify the applicant of
34        the Department's determination of  the  qualification  of
 
HB1599 Enrolled            -9-                 LRB9207178TAcs
 1        the proposed High Impact Business under this Section.
 2        (b)  Businesses  designated  as  High  Impact  Businesses
 3    pursuant  to  subdivision  (a)(3)(A)  of  this  Section shall
 4    qualify for the  credits  and  exemptions  described  in  the
 5    following  Acts:  Section  9-222  and Section 9-222.1A of The
 6    Public Utilities Act, subsection (h) of Section  201  of  the
 7    Illinois  Income  Tax  Act; and, Section 1d of the Retailers'
 8    Occupation  Tax  Act,  provided  that   these   credits   and
 9    exemptions  described  in  these Acts shall not be authorized
10    until  the  minimum  investments  set  forth  in  subdivision
11    (a)(3)(A) subsection (a) of this Section have been placed  in
12    service  in  qualified  properties  and,  in  the case of the
13    exemptions described in the Public Utilities Act and  Section
14    1d   of  the  Retailers'  Occupation  Tax  Act,  the  minimum
15    full-time equivalent jobs or  full-time  jobs  set  forth  in
16    subdivision  (a)(3)(A)  subsection  (a)  of this Section have
17    been created  or  retained.  Businesses  designated  as  High
18    Impact  Businesses  under this Section shall also qualify for
19    the exemption described  in  Section  5l  of  the  Retailers'
20    Occupation  Tax Act. The credit provided in subsection (h) of
21    Section  201  of  the  Illinois  Income  Tax  Act  shall   be
22    applicable  to investments in qualified property as set forth
23    in subdivision (a)(3)(A) subsection (a) of this Section.
24        (b-5)  Businesses designated as  High  Impact  Businesses
25    pursuant  to subdivisions (a)(3)(B), (a)(3)(C), and (a)(3)(D)
26    of this Section shall qualify for the credits and  exemptions
27    described   in   the  following  Acts:   Section  51  of  the
28    Retailers' Occupation Tax  Act,  Section  9-222  and  Section
29    9-222.1A  of  the Public Utilities Act, and subsection (h) of
30    Section 201 of the Illinois  Income  Tax  Act;  however,  the
31    credits  and  exemptions  authorized  under Section 9-222 and
32    Section 9-222.1A of the Public Utilities Act, and  subsection
33    (h)  of  Section 201 of the Illinois Income Tax Act shall not
34    be authorized until the new electric generating facility, the
 
HB1599 Enrolled            -10-                LRB9207178TAcs
 1    new transmission facility, or the new, expanded, or  reopened
 2    coal   mine  is  operational,  except  that  a  new  electric
 3    generating facility whose primary fuel source is natural  gas
 4    is  eligible  only  for the exemption under Section 5l of the
 5    Retailers' Occupation Tax Act.
 6        (c)  High  Impact   Businesses   located   in   federally
 7    designated foreign trade zones or sub-zones are also eligible
 8    for   additional   credits,   exemptions  and  deductions  as
 9    described in the following Acts: Section  9-221  and  Section
10    9-222.1  of  the  Public Utilities Act; and subsection (g) of
11    Section 201, and Section 203 of the Illinois Income Tax Act.
12        (d)  Existing  Illinois  businesses   which   apply   for
13    designation  as  a  High  Impact  Business  must  provide the
14    Department  with  the  prospective  plan  for   which   1,500
15    full-time  jobs  would  be  eliminated  in the event that the
16    business is not designated.
17        (e)  New proposed facilities which apply for  designation
18    as  High  Impact  Business  must  provide the Department with
19    proof of alternative non-Illinois sites which  would  receive
20    the  proposed  investment  and job creation in the event that
21    the business is not designated as a High Impact Business.
22        (f)  In the event that a business is  designated  a  High
23    Impact  Business  and it is later determined after reasonable
24    notice and an opportunity for a hearing as provided under The
25    Illinois Administrative  Procedure  Act,  that  the  business
26    would  have  placed  in  service  in  qualified  property the
27    investments and created or retained the requisite  number  of
28    jobs  without  the  benefits  of  the  High  Impact  Business
29    designation,  the Department shall be required to immediately
30    revoke  the  designation  and  notify  the  Director  of  the
31    Department of Revenue who shall begin proceedings to  recover
32    all  wrongfully  exempted  State  taxes  with  interest.  The
33    business shall  also  be  ineligible  for  all  State  funded
34    Department programs for a period of 10 years.
 
HB1599 Enrolled            -11-                LRB9207178TAcs
 1        (g)  The  Department  shall revoke a High Impact Business
 2    designation if the participating  business  fails  to  comply
 3    with the terms and conditions of the designation.
 4        (h)  Prior  to  designating  a  business,  the Department
 5    shall  provide  the  members  of  the  General  Assembly  and
 6    Illinois Economic and Fiscal Commission with a report setting
 7    forth  the  terms  and  conditions  of  the  designation  and
 8    guarantees that have  been  received  by  the  Department  in
 9    relation to the proposed business being designated.
10    (Source: P.A. 91-914, eff. 7-7-00.)

11        Section  912.   The  Renewable Energy, Energy Efficiency,
12    and Coal Resources Development Law  of  1997  is  amended  by
13    changing Section 6-3 as follows:

14        (20 ILCS 687/6-3)
15        (Section scheduled to be repealed on December 16, 2007)
16        Sec. 6-3. Renewable energy resources program.
17        (a)  The Department of Commerce and Community Affairs, to
18    be  called  the  "Department"  hereinafter in this Law, shall
19    administer the Renewable Energy Resources Program to  provide
20    grants,  loans,  and other incentives to foster investment in
21    and the development and use of renewable energy resources.
22        (b)  The Department shall establish eligibility  criteria
23    for  grants, loans, and other incentives to foster investment
24    in and the development and use of renewable energy resources.
25    These criteria shall be reviewed  annually  and  adjusted  as
26    necessary.  The criteria should promote the goal of fostering
27    investment in and the development and use,  in  Illinois,  of
28    renewable energy resources.
29        (c)  The Department shall accept applications for grants,
30    loans,  and  other incentives to foster investment in and the
31    development and use of renewable energy resources.
32        (d)  To  the  extent  that  funds   are   available   and
 
HB1599 Enrolled            -12-                LRB9207178TAcs
 1    appropriated, the Department shall provide grants, loans, and
 2    other   incentives  to  applicants  that  meet  the  criteria
 3    specified by the Department.
 4        (e)  The Department shall conduct an annual study on  the
 5    use   and  availability  of  renewable  energy  resources  in
 6    Illinois. Each year, the Department shall submit a report  on
 7    the  study to the General Assembly. This report shall include
 8    suggestions  for  legislation  which   will   encourage   the
 9    development and use of renewable energy resources.
10        (f)  As  used  in  this Law, "renewable energy resources"
11    includes energy from wind, solar thermal energy, photovoltaic
12    cells and panels, dedicated crops grown for energy production
13    and organic waste biomass, hydropower that does  not  involve
14    new construction or significant expansion of hydropower dams,
15    and   other   such  alternative  sources  of  environmentally
16    preferable energy.  "Renewable  energy  resources"  does  not
17    include,  however,  energy  from the incineration, burning or
18    heating of waste wood,  tires,  garbage,  general  household,
19    institutional  and  commercial waste, industrial lunchroom or
20    office waste, landscape waste, or construction or  demolition
21    debris.
22        (g)  There  is  created  the Energy Efficiency Investment
23    Fund  as  a  special  fund  in  the  State  Treasury,  to  be
24    administered by the Department to support the development  of
25    technologies  for wind, biomass, and solar power in Illinois.
26    The Department may accept private and public funds, including
27    federal funds, for deposit into the Fund.
28    (Source: P.A. 90-561, eff. 12-16-97.)

29        Section 915.  The State Finance Act is amended by  adding
30    Sections 5.545, 5.546, and 6z-51 as follows:

31        (30 ILCS 105/5.545 new)
32        Sec. 5.545. The Energy Infrastructure Fund.
 
HB1599 Enrolled            -13-                LRB9207178TAcs
 1        (30 ILCS 105/5.546 new)
 2        Sec. 5.546. The Energy Efficiency Investment Fund.

 3        (30 ILCS 105/6z-51 new)
 4        Sec. 6z-51.  The Energy Infrastructure Fund.
 5        (a)  The  Energy  Infrastructure  Fund  is  created  as a
 6    special fund in the State treasury.
 7        (b)  Money in the Energy Infrastructure  Fund  shall,  if
 8    and when the State of Illinois issues any bonded indebtedness
 9    for   financial   assistance   to   new  electric  generating
10    facilities, as provided in Section 605-332 of the  Department
11    of   Commerce   and   Community  Affairs  Law  of  the  Civil
12    Administrative Code of Illinois, be set aside  and  used  for
13    the  purpose of paying and discharging annually the principal
14    and  interest  on  that  bonded  indebtedness  then  due  and
15    payable, and for no other purpose.
16        In addition to other transfers to the General  Obligation
17    Bond Retirement and Interest Fund made pursuant to Section 15
18    of  the  General  Obligation  Bond Act, upon each delivery of
19    bonds  issued  for  financial  assistance  to  new   electric
20    generating facilities under Section 605-332 of the Department
21    of   Commerce   and   Community  Affairs  Law  of  the  Civil
22    Administrative Code of Illinois, the State Comptroller  shall
23    compute  and  certify to the State Treasurer the total amount
24    of principal and interest, and premium, if any, on such bonds
25    during the then current and each succeeding fiscal year.   On
26    or before the last day of each month, the State Treasurer and
27    the   State   Comptroller  shall  transfer  from  the  Energy
28    Infrastructure Fund to the General Obligation Bond Retirement
29    and Interest Fund an amount sufficient to pay  the  aggregate
30    of the principal of, interest on, and premium, if any, on the
31    bonds  payable  on  their  next  payment date, divided by the
32    number  of  monthly  transfers  occurring  between  the  last
33    previous payment date (or the delivery  date  if  no  payment
 
HB1599 Enrolled            -14-                LRB9207178TAcs
 1    date has yet occurred) and the next succeeding payment date.
 2        (c)  To   the   extent   that   moneys   in   the  Energy
 3    Infrastructure Fund, in the opinion of the Governor  and  the
 4    Director  of  the Bureau of the Budget, are in excess of 125%
 5    of the maximum debt service in any fiscal year, such  surplus
 6    shall, subject to appropriation, be used by the Department of
 7    Commerce and Community Affairs for financial assistance under
 8    other   coal   development   programs   administered  by  the
 9    Department, in accordance with the rules of the Department or
10    for other State purposes subject to appropriation.

11        Section 918.  The Illinois Income Tax Act is  amended  by
12    changing Section 201 as follows:

13        (35 ILCS 5/201) (from Ch. 120, par. 2-201)
14        Sec. 201.  Tax Imposed.
15        (a)  In  general.  A tax measured by net income is hereby
16    imposed on every individual, corporation,  trust  and  estate
17    for  each  taxable  year  ending  after  July 31, 1969 on the
18    privilege of earning or receiving income in or as a  resident
19    of  this  State.  Such  tax shall be in addition to all other
20    occupation or privilege taxes imposed by this State or by any
21    municipal corporation or political subdivision thereof.
22        (b)  Rates. The tax imposed by  subsection  (a)  of  this
23    Section shall be determined as follows, except as adjusted by
24    subsection (d-1):
25             (1)  In  the case of an individual, trust or estate,
26        for taxable years ending prior to July 1, 1989, an amount
27        equal to 2 1/2% of the  taxpayer's  net  income  for  the
28        taxable year.
29             (2)  In  the case of an individual, trust or estate,
30        for taxable years beginning prior to  July  1,  1989  and
31        ending after June 30, 1989, an amount equal to the sum of
32        (i)  2  1/2%  of the taxpayer's net income for the period
 
HB1599 Enrolled            -15-                LRB9207178TAcs
 1        prior to July 1, 1989, as calculated under Section 202.3,
 2        and (ii) 3% of the taxpayer's net income for  the  period
 3        after June 30, 1989, as calculated under Section 202.3.
 4             (3)  In  the case of an individual, trust or estate,
 5        for taxable years  beginning  after  June  30,  1989,  an
 6        amount  equal  to 3% of the taxpayer's net income for the
 7        taxable year.
 8             (4)  (Blank).
 9             (5)  (Blank).
10             (6)  In the case of a corporation, for taxable years
11        ending prior to July 1, 1989, an amount equal  to  4%  of
12        the taxpayer's net income for the taxable year.
13             (7)  In the case of a corporation, for taxable years
14        beginning prior to July 1, 1989 and ending after June 30,
15        1989,  an  amount  equal  to  the  sum  of  (i) 4% of the
16        taxpayer's net income for the period  prior  to  July  1,
17        1989, as calculated under Section 202.3, and (ii) 4.8% of
18        the  taxpayer's  net income for the period after June 30,
19        1989, as calculated under Section 202.3.
20             (8)  In the case of a corporation, for taxable years
21        beginning after June 30, 1989, an amount equal to 4.8% of
22        the taxpayer's net income for the taxable year.
23        (c)  Beginning  on  July  1,  1979  and  thereafter,   in
24    addition to such income tax, there is also hereby imposed the
25    Personal  Property Tax Replacement Income Tax measured by net
26    income  on  every   corporation   (including   Subchapter   S
27    corporations),  partnership  and trust, for each taxable year
28    ending after June 30, 1979.  Such taxes are  imposed  on  the
29    privilege  of earning or receiving income in or as a resident
30    of this State.  The Personal Property Tax Replacement  Income
31    Tax  shall  be  in  addition  to  the  income  tax imposed by
32    subsections (a) and (b) of this Section and  in  addition  to
33    all other occupation or privilege taxes imposed by this State
34    or  by  any  municipal  corporation  or political subdivision
 
HB1599 Enrolled            -16-                LRB9207178TAcs
 1    thereof.
 2        (d)  Additional Personal Property Tax Replacement  Income
 3    Tax  Rates.  The personal property tax replacement income tax
 4    imposed by this subsection and subsection (c) of this Section
 5    in the case of a  corporation,  other  than  a  Subchapter  S
 6    corporation and except as adjusted by subsection (d-1), shall
 7    be an additional amount equal to 2.85% of such taxpayer's net
 8    income for the taxable year, except that beginning on January
 9    1,  1981, and thereafter, the rate of 2.85% specified in this
10    subsection shall be reduced to 2.5%, and in  the  case  of  a
11    partnership,  trust or a Subchapter S corporation shall be an
12    additional amount equal to 1.5% of such taxpayer's net income
13    for the taxable year.
14        (d-1)  Rate reduction for certain foreign  insurers.   In
15    the case of a foreign insurer, as defined by Section 35A-5 of
16    the  Illinois  Insurance  Code,  whose  state  or  country of
17    domicile  imposes  on  insurers  domiciled  in   Illinois   a
18    retaliatory  tax  (excluding  any insurer whose premiums from
19    reinsurance assumed are 50% or more of  its  total  insurance
20    premiums  as determined under paragraph (2) of subsection (b)
21    of  Section  304,  except   that   for   purposes   of   this
22    determination   premiums  from  reinsurance  do  not  include
23    premiums  from  inter-affiliate  reinsurance   arrangements),
24    beginning  with taxable years ending on or after December 31,
25    1999, the sum of the rates of tax imposed by subsections  (b)
26    and  (d)  shall be reduced (but not increased) to the rate at
27    which the total amount of tax imposed under this Act, net  of
28    all credits allowed under this Act, shall equal (i) the total
29    amount  of tax that would be imposed on the foreign insurer's
30    net income allocable to Illinois for the taxable year by such
31    foreign insurer's state or country of domicile  if  that  net
32    income were subject to all income taxes and taxes measured by
33    net income imposed by such foreign insurer's state or country
34    of  domicile,  net  of  all credits allowed or (ii) a rate of
 
HB1599 Enrolled            -17-                LRB9207178TAcs
 1    zero if no such tax is imposed on such income by the  foreign
 2    insurer's  state  of  domicile.  For  the  purposes  of  this
 3    subsection   (d-1),  an  inter-affiliate  includes  a  mutual
 4    insurer under common management.
 5             (1)  For the purposes of  subsection  (d-1),  in  no
 6        event  shall  the  sum  of  the  rates  of tax imposed by
 7        subsections (b) and (d) be  reduced  below  the  rate  at
 8        which the sum of:
 9                  (A)  the  total  amount  of tax imposed on such
10             foreign insurer under this Act for a  taxable  year,
11             net of all credits allowed under this Act, plus
12                  (B)  the  privilege  tax imposed by Section 409
13             of the Illinois Insurance Code, the  fire  insurance
14             company  tax  imposed  by  Section  12  of  the Fire
15             Investigation Act, and  the  fire  department  taxes
16             imposed   under  Section  11-10-1  of  the  Illinois
17             Municipal Code,
18        equals 1.25% of the net taxable premiums written for  the
19        taxable  year,  as described by subsection (1) of Section
20        409 of the Illinois Insurance Code.  This paragraph  will
21        in  no event increase the rates imposed under subsections
22        (b) and (d).
23             (2)  Any reduction in the rates of  tax  imposed  by
24        this  subsection shall be applied first against the rates
25        imposed by subsection (b) and only after the tax  imposed
26        by  subsection  (a) net of all credits allowed under this
27        Section other than the credit  allowed  under  subsection
28        (i)  has  been reduced to zero, against the rates imposed
29        by subsection (d).
30        This subsection (d-1) is exempt from  the  provisions  of
31    Section 250.
32        (e)  Investment  credit.   A  taxpayer shall be allowed a
33    credit against the Personal Property Tax  Replacement  Income
34    Tax for investment in qualified property.
 
HB1599 Enrolled            -18-                LRB9207178TAcs
 1             (1)  A  taxpayer  shall be allowed a credit equal to
 2        .5% of the basis of qualified property placed in  service
 3        during the taxable year, provided such property is placed
 4        in  service  on  or  after  July 1, 1984.  There shall be
 5        allowed an additional credit equal to .5% of the basis of
 6        qualified property placed in service during  the  taxable
 7        year,  provided  such property is placed in service on or
 8        after July 1, 1986, and the  taxpayer's  base  employment
 9        within  Illinois  has  increased  by  1% or more over the
10        preceding year as determined by the taxpayer's employment
11        records filed with the Illinois Department of  Employment
12        Security.   Taxpayers  who  are  new to Illinois shall be
13        deemed to have met the 1% growth in base  employment  for
14        the first year in which they file employment records with
15        the  Illinois  Department  of  Employment  Security.  The
16        provisions added to this Section by  Public  Act  85-1200
17        (and restored by Public Act 87-895) shall be construed as
18        declaratory  of  existing law and not as a new enactment.
19        If, in any year, the increase in base  employment  within
20        Illinois  over  the  preceding  year is less than 1%, the
21        additional credit shall be  limited  to  that  percentage
22        times  a  fraction, the numerator of which is .5% and the
23        denominator of which is 1%, but  shall  not  exceed  .5%.
24        The  investment credit shall not be allowed to the extent
25        that it would reduce a taxpayer's liability  in  any  tax
26        year  below  zero,  nor  may  any  credit  for  qualified
27        property  be  allowed for any year other than the year in
28        which the property was placed in service in Illinois. For
29        tax years ending on or after December 31, 1987, and on or
30        before December 31, 1988, the credit shall be allowed for
31        the tax year in which the property is placed in  service,
32        or, if the amount of the credit exceeds the tax liability
33        for  that year, whether it exceeds the original liability
34        or the liability as later amended,  such  excess  may  be
 
HB1599 Enrolled            -19-                LRB9207178TAcs
 1        carried forward and applied to the tax liability of the 5
 2        taxable  years  following  the excess credit years if the
 3        taxpayer (i) makes investments which cause  the  creation
 4        of  a  minimum  of  2,000  full-time  equivalent  jobs in
 5        Illinois,  (ii)  is  located  in   an   enterprise   zone
 6        established  pursuant to the Illinois Enterprise Zone Act
 7        and (iii) is certified by the Department of Commerce  and
 8        Community  Affairs  as  complying  with  the requirements
 9        specified in clause (i) and (ii) by July  1,  1986.   The
10        Department of Commerce and Community Affairs shall notify
11        the  Department  of  Revenue  of  all such certifications
12        immediately. For tax  years  ending  after  December  31,
13        1988,  the  credit  shall  be allowed for the tax year in
14        which the property is  placed  in  service,  or,  if  the
15        amount  of  the credit exceeds the tax liability for that
16        year, whether it exceeds the original  liability  or  the
17        liability  as  later  amended, such excess may be carried
18        forward and applied to the tax liability of the 5 taxable
19        years following the excess credit years. The credit shall
20        be applied to the earliest year  for  which  there  is  a
21        liability. If there is credit from more than one tax year
22        that  is  available to offset a liability, earlier credit
23        shall be applied first.
24             (2)  The term "qualified  property"  means  property
25        which:
26                  (A)  is   tangible,   whether   new   or  used,
27             including buildings  and  structural  components  of
28             buildings  and signs that are real property, but not
29             including land or improvements to real property that
30             are not a structural component of a building such as
31             landscaping,  sewer  lines,  local   access   roads,
32             fencing, parking lots, and other appurtenances;
33                  (B)  is  depreciable pursuant to Section 167 of
34             the  Internal  Revenue  Code,  except  that  "3-year
 
HB1599 Enrolled            -20-                LRB9207178TAcs
 1             property" as defined in Section 168(c)(2)(A) of that
 2             Code is not eligible for the credit provided by this
 3             subsection (e);
 4                  (C)  is acquired  by  purchase  as  defined  in
 5             Section 179(d) of the Internal Revenue Code;
 6                  (D)  is  used  in Illinois by a taxpayer who is
 7             primarily engaged in  manufacturing,  or  in  mining
 8             coal or fluorite, or in retailing; and
 9                  (E)  has  not  previously been used in Illinois
10             in such a manner and  by  such  a  person  as  would
11             qualify  for  the credit provided by this subsection
12             (e) or subsection (f).
13             (3)  For   purposes   of   this   subsection    (e),
14        "manufacturing" means the material staging and production
15        of  tangible  personal  property  by  procedures commonly
16        regarded as manufacturing,  processing,  fabrication,  or
17        assembling  which changes some existing material into new
18        shapes, new qualities, or new combinations.  For purposes
19        of this subsection (e) the term "mining" shall  have  the
20        same  meaning  as  the term "mining" in Section 613(c) of
21        the  Internal  Revenue  Code.   For  purposes   of   this
22        subsection  (e),  the  term "retailing" means the sale of
23        tangible  personal  property  or  services  rendered   in
24        conjunction  with  the sale of tangible consumer goods or
25        commodities.
26             (4)  The basis of qualified property  shall  be  the
27        basis  used  to  compute  the  depreciation deduction for
28        federal income tax purposes.
29             (5)  If the basis of the property for federal income
30        tax depreciation purposes is increased after it has  been
31        placed in service in Illinois by the taxpayer, the amount
32        of  such  increase  shall  be  deemed  property placed in
33        service on the date of such increase in basis.
34             (6)  The term "placed in  service"  shall  have  the
 
HB1599 Enrolled            -21-                LRB9207178TAcs
 1        same  meaning as under Section 46 of the Internal Revenue
 2        Code.
 3             (7)  If during any taxable year, any property ceases
 4        to be qualified property in the  hands  of  the  taxpayer
 5        within  48  months  after being placed in service, or the
 6        situs of any qualified property is moved outside Illinois
 7        within 48 months  after  being  placed  in  service,  the
 8        Personal  Property  Tax  Replacement  Income Tax for such
 9        taxable year shall be increased.  Such increase shall  be
10        determined by (i) recomputing the investment credit which
11        would  have been allowed for the year in which credit for
12        such property was originally allowed by eliminating  such
13        property from such computation and, (ii) subtracting such
14        recomputed  credit  from  the amount of credit previously
15        allowed. For  the  purposes  of  this  paragraph  (7),  a
16        reduction  of  the  basis of qualified property resulting
17        from a redetermination of the  purchase  price  shall  be
18        deemed  a disposition of qualified property to the extent
19        of such reduction.
20             (8)  Unless the investment  credit  is  extended  by
21        law,  the  basis  of qualified property shall not include
22        costs incurred after December 31, 2003, except for  costs
23        incurred  pursuant  to a binding contract entered into on
24        or before December 31, 2003.
25             (9)  Each taxable year ending  before  December  31,
26        2000,  a  partnership  may  elect  to pass through to its
27        partners the credits to which the partnership is entitled
28        under this  subsection  (e)  for  the  taxable  year.   A
29        partner  may use the credit allocated to him or her under
30        this  paragraph  only  against   the   tax   imposed   in
31        subsections   (c)  and  (d)  of  this  Section.   If  the
32        partnership makes that election, those credits  shall  be
33        allocated  among  the  partners  in  the  partnership  in
34        accordance  with the rules set forth in Section 704(b) of
 
HB1599 Enrolled            -22-                LRB9207178TAcs
 1        the Internal Revenue  Code,  and  the  rules  promulgated
 2        under  that  Section,  and  the  allocated  amount of the
 3        credits shall be allowed to the partners for that taxable
 4        year.  The partnership shall make this  election  on  its
 5        Personal  Property  Tax Replacement Income Tax return for
 6        that taxable year.  The  election  to  pass  through  the
 7        credits shall be irrevocable.
 8             For  taxable  years  ending on or after December 31,
 9        2000, a partner that  qualifies  its  partnership  for  a
10        subtraction  under  subparagraph  (I) of paragraph (2) of
11        subsection (d) of  Section  203  or  a  shareholder  that
12        qualifies  a  Subchapter  S corporation for a subtraction
13        under subparagraph (S) of paragraph (2) of subsection (b)
14        of Section 203 shall  be  allowed  a  credit  under  this
15        subsection  (e)  equal  to its share of the credit earned
16        under this subsection (e) during the taxable year by  the
17        partnership  or  Subchapter  S corporation, determined in
18        accordance  with  the   determination   of   income   and
19        distributive  share  of income under Sections 702 and 704
20        and Subchapter S of  the  Internal  Revenue  Code.   This
21        paragraph is exempt from the provisions of Section 250.
22          (f)  Investment credit; Enterprise Zone.
23             (1)  A  taxpayer  shall  be allowed a credit against
24        the tax imposed  by  subsections  (a)  and  (b)  of  this
25        Section  for  investment  in  qualified property which is
26        placed in service in an Enterprise Zone created  pursuant
27        to  the  Illinois  Enterprise  Zone  Act.  For  partners,
28        shareholders  of Subchapter S corporations, and owners of
29        limited liability companies, if the liability company  is
30        treated  as  a  partnership  for  purposes of federal and
31        State income taxation, there shall be  allowed  a  credit
32        under  this subsection (f) to be determined in accordance
33        with the determination of income and  distributive  share
34        of  income under Sections 702 and 704 and Subchapter S of
 
HB1599 Enrolled            -23-                LRB9207178TAcs
 1        the Internal Revenue Code. The credit shall be .5% of the
 2        basis for such property.  The credit shall  be  available
 3        only  in the taxable year in which the property is placed
 4        in service in  the  Enterprise  Zone  and  shall  not  be
 5        allowed  to  the extent that it would reduce a taxpayer's
 6        liability for the tax imposed by subsections (a) and  (b)
 7        of this Section to below zero. For tax years ending on or
 8        after  December 31, 1985, the credit shall be allowed for
 9        the tax year in which the property is placed in  service,
10        or, if the amount of the credit exceeds the tax liability
11        for  that year, whether it exceeds the original liability
12        or the liability as later amended,  such  excess  may  be
13        carried forward and applied to the tax liability of the 5
14        taxable  years  following  the  excess  credit  year. The
15        credit shall be applied to the earliest  year  for  which
16        there  is  a liability. If there is credit from more than
17        one tax year that is available to offset a liability, the
18        credit accruing first in time shall be applied first.
19             (2)  The  term  qualified  property  means  property
20        which:
21                  (A)  is  tangible,   whether   new   or   used,
22             including  buildings  and  structural  components of
23             buildings;
24                  (B)  is depreciable pursuant to Section 167  of
25             the  Internal  Revenue  Code,  except  that  "3-year
26             property" as defined in Section 168(c)(2)(A) of that
27             Code is not eligible for the credit provided by this
28             subsection (f);
29                  (C)  is  acquired  by  purchase  as  defined in
30             Section 179(d) of the Internal Revenue Code;
31                  (D)  is used in  the  Enterprise  Zone  by  the
32             taxpayer; and
33                  (E)  has  not  been previously used in Illinois
34             in such a manner and  by  such  a  person  as  would
 
HB1599 Enrolled            -24-                LRB9207178TAcs
 1             qualify  for  the credit provided by this subsection
 2             (f) or subsection (e).
 3             (3)  The basis of qualified property  shall  be  the
 4        basis  used  to  compute  the  depreciation deduction for
 5        federal income tax purposes.
 6             (4)  If the basis of the property for federal income
 7        tax depreciation purposes is increased after it has  been
 8        placed in service in the Enterprise Zone by the taxpayer,
 9        the  amount  of  such  increase  shall be deemed property
10        placed in service on the date of such increase in basis.
11             (5)  The term "placed in  service"  shall  have  the
12        same  meaning as under Section 46 of the Internal Revenue
13        Code.
14             (6)  If during any taxable year, any property ceases
15        to be qualified property in the  hands  of  the  taxpayer
16        within  48  months  after being placed in service, or the
17        situs of any qualified  property  is  moved  outside  the
18        Enterprise  Zone  within  48 months after being placed in
19        service, the tax imposed under subsections (a) and (b) of
20        this Section for such taxable year  shall  be  increased.
21        Such  increase shall be determined by (i) recomputing the
22        investment credit which would have been allowed  for  the
23        year  in  which  credit  for such property was originally
24        allowed  by   eliminating   such   property   from   such
25        computation,  and (ii) subtracting such recomputed credit
26        from the amount of credit previously  allowed.   For  the
27        purposes  of this paragraph (6), a reduction of the basis
28        of qualified property resulting from a redetermination of
29        the purchase price  shall  be  deemed  a  disposition  of
30        qualified property to the extent of such reduction.
31          (g)  Jobs Tax Credit; Enterprise Zone and Foreign Trade
32    Zone or Sub-Zone.
33             (1)  A taxpayer conducting a trade or business in an
34        enterprise  zone  or a High Impact Business designated by
 
HB1599 Enrolled            -25-                LRB9207178TAcs
 1        the  Department  of  Commerce   and   Community   Affairs
 2        conducting  a trade or business in a federally designated
 3        Foreign Trade Zone or Sub-Zone shall be allowed a  credit
 4        against  the  tax  imposed  by subsections (a) and (b) of
 5        this Section in the amount of $500 per eligible  employee
 6        hired to work in the zone during the taxable year.
 7             (2)  To qualify for the credit:
 8                  (A)  the  taxpayer must hire 5 or more eligible
 9             employees to work in an enterprise zone or federally
10             designated Foreign Trade Zone or Sub-Zone during the
11             taxable year;
12                  (B)  the taxpayer's total employment within the
13             enterprise  zone  or  federally  designated  Foreign
14             Trade Zone or Sub-Zone must increase by  5  or  more
15             full-time  employees  beyond  the  total employed in
16             that zone at the end of the previous  tax  year  for
17             which  a  jobs  tax  credit  under  this Section was
18             taken, or beyond the total employed by the  taxpayer
19             as of December 31, 1985, whichever is later; and
20                  (C)  the  eligible  employees  must be employed
21             180 consecutive days in order to be deemed hired for
22             purposes of this subsection.
23             (3)  An "eligible employee" means  an  employee  who
24        is:
25                  (A)  Certified  by  the  Department of Commerce
26             and Community Affairs  as  "eligible  for  services"
27             pursuant  to  regulations  promulgated in accordance
28             with Title II of the Job Training  Partnership  Act,
29             Training Services for the Disadvantaged or Title III
30             of  the Job Training Partnership Act, Employment and
31             Training Assistance for Dislocated Workers Program.
32                  (B)  Hired  after  the   enterprise   zone   or
33             federally  designated Foreign Trade Zone or Sub-Zone
34             was designated or the trade or business was  located
 
HB1599 Enrolled            -26-                LRB9207178TAcs
 1             in that zone, whichever is later.
 2                  (C)  Employed in the enterprise zone or Foreign
 3             Trade  Zone  or Sub-Zone. An employee is employed in
 4             an enterprise zone or federally  designated  Foreign
 5             Trade  Zone or Sub-Zone if his services are rendered
 6             there or it  is  the  base  of  operations  for  the
 7             services performed.
 8                  (D)  A  full-time  employee  working 30 or more
 9             hours per week.
10             (4)  For tax years ending on or after  December  31,
11        1985  and prior to December 31, 1988, the credit shall be
12        allowed for the tax year in which the eligible  employees
13        are hired.  For tax years ending on or after December 31,
14        1988,  the  credit  shall  be  allowed  for  the tax year
15        immediately following the tax year in which the  eligible
16        employees are hired.  If the amount of the credit exceeds
17        the  tax  liability for that year, whether it exceeds the
18        original liability or the  liability  as  later  amended,
19        such excess may be carried forward and applied to the tax
20        liability  of  the  5  taxable years following the excess
21        credit year.  The credit shall be applied to the earliest
22        year for which there is a liability. If there  is  credit
23        from more than one tax year that is available to offset a
24        liability, earlier credit shall be applied first.
25             (5)  The Department of Revenue shall promulgate such
26        rules and regulations as may be deemed necessary to carry
27        out the purposes of this subsection (g).
28             (6)  The  credit  shall  be  available  for eligible
29        employees hired on or after January 1, 1986.
30             (h)  Investment credit; High Impact Business.
31             (1)  Subject to subsections subsection (b) and (b-5)
32        of Section 5.5 of the Illinois  Enterprise  Zone  Act,  a
33        taxpayer  shall  be  allowed  a  credit  against  the tax
34        imposed by subsections (a) and (b) of  this  Section  for
 
HB1599 Enrolled            -27-                LRB9207178TAcs
 1        investment  in  qualified  property  which  is  placed in
 2        service by a Department of Commerce and Community Affairs
 3        designated High Impact Business.  The credit shall be .5%
 4        of the basis for such property.  The credit shall not  be
 5        available  (i) until the minimum investments in qualified
 6        property set forth in subdivision  (a)(3)(A)  of  Section
 7        5.5  of  the  Illinois  Enterprise  Zone  Act  have  been
 8        satisfied or (ii) until the time authorized in subsection
 9        (b-5)  of  the  Illinois Enterprise Zone Act for entities
10        designated as High Impact Businesses  under  subdivisions
11        (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the
12        Illinois Enterprise Zone Act, and shall not be allowed to
13        the  extent  that  it would reduce a taxpayer's liability
14        for the tax imposed by subsections (a) and  (b)  of  this
15        Section  to  below  zero.  The  credit applicable to such
16        minimum investments shall be taken in the taxable year in
17        which such minimum investments have been completed.   The
18        credit  for  additional  investments  beyond  the minimum
19        investment  by  a   designated   high   impact   business
20        authorized  under subdivision (a)(3)(A) of Section 5.5 of
21        the Illinois Enterprise Zone Act shall be available  only
22        in  the  taxable  year in which the property is placed in
23        service and shall not be allowed to the  extent  that  it
24        would  reduce  a taxpayer's liability for the tax imposed
25        by subsections (a) and (b) of this Section to below zero.
26        For tax years ending on or after December 31,  1987,  the
27        credit  shall  be  allowed  for the tax year in which the
28        property is placed in service, or, if the amount  of  the
29        credit  exceeds  the tax liability for that year, whether
30        it exceeds the original liability  or  the  liability  as
31        later  amended,  such  excess  may be carried forward and
32        applied to the tax  liability  of  the  5  taxable  years
33        following  the  excess  credit year.  The credit shall be
34        applied to  the  earliest  year  for  which  there  is  a
 
HB1599 Enrolled            -28-                LRB9207178TAcs
 1        liability.   If  there  is  credit from more than one tax
 2        year that is available to offset a liability, the  credit
 3        accruing first in time shall be applied first.
 4             Changes  made  in  this subdivision (h)(1) by Public
 5        Act 88-670 restore changes made by Public Act 85-1182 and
 6        reflect existing law.
 7             (2)  The  term  qualified  property  means  property
 8        which:
 9                  (A)  is  tangible,   whether   new   or   used,
10             including  buildings  and  structural  components of
11             buildings;
12                  (B)  is depreciable pursuant to Section 167  of
13             the  Internal  Revenue  Code,  except  that  "3-year
14             property" as defined in Section 168(c)(2)(A) of that
15             Code is not eligible for the credit provided by this
16             subsection (h);
17                  (C)  is  acquired  by  purchase  as  defined in
18             Section 179(d) of the Internal Revenue Code; and
19                  (D)  is not eligible for  the  Enterprise  Zone
20             Investment Credit provided by subsection (f) of this
21             Section.
22             (3)  The  basis  of  qualified property shall be the
23        basis used to  compute  the  depreciation  deduction  for
24        federal income tax purposes.
25             (4)  If the basis of the property for federal income
26        tax  depreciation purposes is increased after it has been
27        placed in service in a federally designated Foreign Trade
28        Zone or Sub-Zone located in Illinois by the taxpayer, the
29        amount of such increase shall be deemed  property  placed
30        in service on the date of such increase in basis.
31             (5)  The  term  "placed  in  service" shall have the
32        same meaning as under Section 46 of the Internal  Revenue
33        Code.
34             (6)  If  during any taxable year ending on or before
 
HB1599 Enrolled            -29-                LRB9207178TAcs
 1        December 31, 1996, any property ceases  to  be  qualified
 2        property  in  the  hands of the taxpayer within 48 months
 3        after being placed  in  service,  or  the  situs  of  any
 4        qualified  property  is  moved outside Illinois within 48
 5        months after being placed in  service,  the  tax  imposed
 6        under  subsections  (a)  and (b) of this Section for such
 7        taxable year shall be increased.  Such increase shall  be
 8        determined by (i) recomputing the investment credit which
 9        would  have been allowed for the year in which credit for
10        such property was originally allowed by eliminating  such
11        property from such computation, and (ii) subtracting such
12        recomputed  credit  from  the amount of credit previously
13        allowed.  For the  purposes  of  this  paragraph  (6),  a
14        reduction  of  the  basis of qualified property resulting
15        from a redetermination of the  purchase  price  shall  be
16        deemed  a disposition of qualified property to the extent
17        of such reduction.
18             (7)  Beginning with tax years ending after  December
19        31,  1996,  if  a taxpayer qualifies for the credit under
20        this  subsection  (h)  and  thereby  is  granted  a   tax
21        abatement  and the taxpayer relocates its entire facility
22        in violation of the explicit  terms  and  length  of  the
23        contract  under  Section 18-183 of the Property Tax Code,
24        the tax imposed under subsections (a)  and  (b)  of  this
25        Section  shall be increased for the taxable year in which
26        the taxpayer relocated its facility by an amount equal to
27        the amount of credit received by the taxpayer under  this
28        subsection (h).
29        (i)  A credit shall be allowed against the tax imposed by
30    subsections  (a)  and (b) of this Section for the tax imposed
31    by subsections (c) and (d)  of  this  Section.   This  credit
32    shall   be   computed  by  multiplying  the  tax  imposed  by
33    subsections (c) and (d) of this Section by  a  fraction,  the
34    numerator  of  which is base income allocable to Illinois and
 
HB1599 Enrolled            -30-                LRB9207178TAcs
 1    the denominator of which is Illinois base income, and further
 2    multiplying  the  product  by  the  tax   rate   imposed   by
 3    subsections (a) and (b) of this Section.
 4        Any  credit  earned  on  or after December 31, 1986 under
 5    this subsection which is unused in the  year  the  credit  is
 6    computed  because  it  exceeds  the  tax liability imposed by
 7    subsections (a) and (b) for that year (whether it exceeds the
 8    original liability or the liability as later amended) may  be
 9    carried  forward  and applied to the tax liability imposed by
10    subsections (a) and (b) of the 5 taxable years following  the
11    excess  credit  year.   This credit shall be applied first to
12    the earliest year for which there is a liability.   If  there
13    is a credit under this subsection from more than one tax year
14    that  is  available to offset a liability the earliest credit
15    arising under this subsection shall be applied first.
16        If, during any taxable year ending on or  after  December
17    31,  1986, the tax imposed by subsections (c) and (d) of this
18    Section for which a taxpayer has claimed a credit under  this
19    subsection  (i) is reduced, the amount of credit for such tax
20    shall also be reduced.  Such reduction shall be determined by
21    recomputing the credit to take into account the  reduced  tax
22    imposed  by  subsection  (c)  and (d).  If any portion of the
23    reduced amount of credit has  been  carried  to  a  different
24    taxable  year,  an  amended  return  shall  be filed for such
25    taxable year to reduce the amount of credit claimed.
26        (j)  Training expense credit.  Beginning with  tax  years
27    ending  on  or  after  December 31, 1986, a taxpayer shall be
28    allowed a credit against the tax imposed  by  subsection  (a)
29    and  (b)  under this Section for all amounts paid or accrued,
30    on behalf of all persons employed by the taxpayer in Illinois
31    or Illinois residents  employed  outside  of  Illinois  by  a
32    taxpayer,   for   educational   or   vocational  training  in
33    semi-technical or technical fields or semi-skilled or skilled
34    fields,  which  were  deducted  from  gross  income  in   the
 
HB1599 Enrolled            -31-                LRB9207178TAcs
 1    computation  of  taxable  income.  The credit against the tax
 2    imposed by subsections (a) and (b)  shall  be  1.6%  of  such
 3    training  expenses.  For partners, shareholders of subchapter
 4    S corporations, and owners of limited liability companies, if
 5    the  liability  company  is  treated  as  a  partnership  for
 6    purposes of federal and State income taxation, there shall be
 7    allowed a credit under this subsection (j) to  be  determined
 8    in   accordance   with   the   determination  of  income  and
 9    distributive share of income under Sections 702 and  704  and
10    subchapter S of the Internal Revenue Code.
11        Any  credit allowed under this subsection which is unused
12    in the year the credit is earned may be  carried  forward  to
13    each  of the 5 taxable years following the year for which the
14    credit is first computed until it is used.  This credit shall
15    be applied first to the earliest year for which  there  is  a
16    liability.   If  there is a credit under this subsection from
17    more than  one  tax  year  that  is  available  to  offset  a
18    liability  the  earliest credit arising under this subsection
19    shall be applied first.
20        (k)  Research and development credit.
21        Beginning with tax years ending after  July  1,  1990,  a
22    taxpayer shall be allowed a credit against the tax imposed by
23    subsections  (a)  and  (b)  of  this  Section  for increasing
24    research  activities  in  this  State.   The  credit  allowed
25    against the tax imposed by subsections (a) and (b)  shall  be
26    equal to 6 1/2% of the qualifying expenditures for increasing
27    research activities in this State. For partners, shareholders
28    of subchapter S corporations, and owners of limited liability
29    companies,   if   the  liability  company  is  treated  as  a
30    partnership  for  purposes  of  federal  and   State   income
31    taxation,   there  shall  be  allowed  a  credit  under  this
32    subsection  to  be  determined   in   accordance   with   the
33    determination  of  income  and  distributive  share of income
34    under Sections 702 and 704 and subchapter S of  the  Internal
 
HB1599 Enrolled            -32-                LRB9207178TAcs
 1    Revenue Code.
 2        For    purposes    of    this   subsection,   "qualifying
 3    expenditures" means the qualifying  expenditures  as  defined
 4    for  the  federal  credit  for increasing research activities
 5    which would be allowable under Section  41  of  the  Internal
 6    Revenue   Code   and  which  are  conducted  in  this  State,
 7    "qualifying expenditures for increasing  research  activities
 8    in  this  State"  means the excess of qualifying expenditures
 9    for the  taxable  year  in  which  incurred  over  qualifying
10    expenditures  for  the  base period, "qualifying expenditures
11    for the base period" means  the  average  of  the  qualifying
12    expenditures  for  each  year  in  the base period, and "base
13    period" means the 3 taxable years immediately  preceding  the
14    taxable year for which the determination is being made.
15        Any credit in excess of the tax liability for the taxable
16    year may be carried forward. A taxpayer may elect to have the
17    unused  credit  shown  on  its final completed return carried
18    over as a credit against the tax liability for the  following
19    5  taxable  years  or until it has been fully used, whichever
20    occurs first.
21        If an unused credit is carried forward to  a  given  year
22    from  2  or  more  earlier  years, that credit arising in the
23    earliest year will be applied first against the tax liability
24    for the given year.  If a tax liability for  the  given  year
25    still  remains,  the  credit from the next earliest year will
26    then be applied, and so on, until all credits have been  used
27    or  no  tax  liability  for  the  given  year  remains.   Any
28    remaining  unused  credit  or  credits  then  will be carried
29    forward to the next following year in which a  tax  liability
30    is  incurred, except that no credit can be carried forward to
31    a year which is more than 5 years after the year in which the
32    expense for which the credit is given was incurred.
33        Unless extended by law,  the  credit  shall  not  include
34    costs  incurred  after  December  31,  2004, except for costs
 
HB1599 Enrolled            -33-                LRB9207178TAcs
 1    incurred pursuant to a binding contract entered  into  on  or
 2    before December 31, 2004.
 3        No  inference  shall be drawn from this amendatory Act of
 4    the 91st General Assembly  in  construing  this  Section  for
 5    taxable years beginning before January 1, 1999.
 6        (l)  Environmental Remediation Tax Credit.
 7             (i)  For  tax   years ending after December 31, 1997
 8        and on or before December 31, 2001, a taxpayer  shall  be
 9        allowed  a  credit against the tax imposed by subsections
10        (a) and (b) of this Section for certain amounts paid  for
11        unreimbursed  eligible remediation costs, as specified in
12        this  subsection.   For   purposes   of   this   Section,
13        "unreimbursed  eligible  remediation  costs"  means costs
14        approved by the Illinois Environmental Protection  Agency
15        ("Agency")  under  Section  58.14  of  the  Environmental
16        Protection Act that were paid in performing environmental
17        remediation  at a site for which a No Further Remediation
18        Letter was  issued  by  the  Agency  and  recorded  under
19        Section  58.10  of the Environmental Protection Act.  The
20        credit must be claimed for  the  taxable  year  in  which
21        Agency  approval  of  the  eligible  remediation costs is
22        granted.  The credit is not available to any taxpayer  if
23        the  taxpayer  or any related party caused or contributed
24        to, in any  material  respect,  a  release  of  regulated
25        substances  on, in, or under the site that was identified
26        and addressed by the remedial action pursuant to the Site
27        Remediation Program of the Environmental Protection  Act.
28        After  the  Pollution  Control  Board  rules  are adopted
29        pursuant to the Illinois Administrative Procedure Act for
30        the administration and enforcement of Section 58.9 of the
31        Environmental Protection Act, determinations as to credit
32        availability for purposes of this Section shall  be  made
33        consistent  with  those  rules.   For  purposes  of  this
34        Section,   "taxpayer"   includes   a   person  whose  tax
 
HB1599 Enrolled            -34-                LRB9207178TAcs
 1        attributes the taxpayer has succeeded  to  under  Section
 2        381  of  the  Internal  Revenue  Code and "related party"
 3        includes the persons disallowed a deduction for losses by
 4        paragraphs (b), (c), and (f)(1) of  Section  267  of  the
 5        Internal  Revenue  Code  by  virtue  of  being  a related
 6        taxpayer, as well as any of  its  partners.   The  credit
 7        allowed  against  the  tax imposed by subsections (a) and
 8        (b) shall be equal to 25% of  the  unreimbursed  eligible
 9        remediation  costs in excess of $100,000 per site, except
10        that the $100,000 threshold shall not apply to  any  site
11        contained  in  an  enterprise  zone  as determined by the
12        Department of Commerce and Community Affairs.  The  total
13        credit  allowed  shall not exceed $40,000 per year with a
14        maximum total of $150,000 per  site.   For  partners  and
15        shareholders of subchapter S corporations, there shall be
16        allowed  a  credit under this subsection to be determined
17        in  accordance  with  the  determination  of  income  and
18        distributive share of income under Sections 702  and  704
19        and of subchapter S of the Internal Revenue Code.
20             (ii)  A credit allowed under this subsection that is
21        unused  in  the  year the credit is earned may be carried
22        forward to each of the 5 taxable years following the year
23        for which the credit is first earned until  it  is  used.
24        The  term "unused credit" does not include any amounts of
25        unreimbursed eligible remediation costs in excess of  the
26        maximum  credit  per site authorized under paragraph (i).
27        This credit shall be applied first to the  earliest  year
28        for  which  there  is  a liability.  If there is a credit
29        under this subsection from more than one tax year that is
30        available to offset  a  liability,  the  earliest  credit
31        arising  under this subsection shall be applied first.  A
32        credit allowed under this subsection may  be  sold  to  a
33        buyer as part of a sale of all or part of the remediation
34        site  for which the credit was granted.  The purchaser of
 
HB1599 Enrolled            -35-                LRB9207178TAcs
 1        a remediation site and the tax credit  shall  succeed  to
 2        the  unused  credit and remaining carry-forward period of
 3        the seller.  To perfect the transfer, the assignor  shall
 4        record  the  transfer  in the chain of title for the site
 5        and  provide  written  notice  to  the  Director  of  the
 6        Illinois Department of Revenue of the  assignor's  intent
 7        to  sell  the  remediation site and the amount of the tax
 8        credit to be transferred as a portion of the sale.  In no
 9        event may a credit be transferred to any taxpayer if  the
10        taxpayer  or  a related party would not be eligible under
11        the provisions of subsection (i).
12             (iii)  For purposes of this Section, the term "site"
13        shall have the same meaning as under Section 58.2 of  the
14        Environmental Protection Act.
15        (m)  Education expense credit.
16        Beginning  with tax years ending after December 31, 1999,
17    a taxpayer who is the custodian of  one  or  more  qualifying
18    pupils  shall  be allowed a credit against the tax imposed by
19    subsections  (a)  and  (b)  of  this  Section  for  qualified
20    education expenses  incurred  on  behalf  of  the  qualifying
21    pupils.   The  credit  shall  be  equal  to  25% of qualified
22    education expenses, but in no  event  may  the  total  credit
23    under  this Section claimed by a family that is the custodian
24    of qualifying pupils exceed $500. In no event shall a  credit
25    under  this  subsection reduce the taxpayer's liability under
26    this Act to less than zero. This subsection  is  exempt  from
27    the provisions of Section 250 of this Act.
28        For purposes of this subsection;
29        "Qualifying   pupils"   means  individuals  who  (i)  are
30    residents of the State of Illinois, (ii) are under the age of
31    21 at the close of the school year  for  which  a  credit  is
32    sought,  and  (iii) during the school year for which a credit
33    is sought were full-time pupils enrolled  in  a  kindergarten
34    through  twelfth  grade  education  program at any school, as
 
HB1599 Enrolled            -36-                LRB9207178TAcs
 1    defined in this subsection.
 2        "Qualified education expense" means the  amount  incurred
 3    on  behalf  of  a  qualifying  pupil  in  excess  of $250 for
 4    tuition, book fees, and lab fees at the school in  which  the
 5    pupil is enrolled during the regular school year.
 6        "School"  means  any  public  or  nonpublic elementary or
 7    secondary school in Illinois that is in compliance with Title
 8    VI of the Civil Rights Act of 1964 and  attendance  at  which
 9    satisfies  the  requirements  of  Section  26-1 of the School
10    Code, except that nothing shall be  construed  to  require  a
11    child  to attend any particular public or nonpublic school to
12    qualify for the credit under this Section.
13        "Custodian" means, with respect to qualifying pupils,  an
14    Illinois  resident  who  is  a  parent,  the parents, a legal
15    guardian, or the legal guardians of the qualifying pupils.
16    (Source: P.A. 90-123, eff.  7-21-97;  90-458,  eff.  8-17-97;
17    90-605,  eff.  6-30-98;  90-655,  eff.  7-30-98; 90-717, eff.
18    8-7-98; 90-792, eff. 1-1-99; 91-9, eff. 1-1-00; 91-357,  eff.
19    7-29-99;  91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860,
20    eff. 6-22-00; 91-913, eff. 1-1-01; revised 10-24-00.)

21        Section 920.  The Use Tax  Act  is  amended  by  changing
22    Section 9 as follows:

23        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
24        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
25    aircraft, and trailers that are  required  to  be  registered
26    with  an  agency  of  this  State,  each retailer required or
27    authorized to collect the tax imposed by this Act  shall  pay
28    to the Department the amount of such tax (except as otherwise
29    provided)  at the time when he is required to file his return
30    for the period during which such tax was  collected,  less  a
31    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
32    after January 1, 1990, or $5 per calendar year, whichever  is
 
HB1599 Enrolled            -37-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -38-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -39-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -40-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -41-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -42-                LRB9207178TAcs
 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,
 
HB1599 Enrolled            -43-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -44-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -45-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -46-                LRB9207178TAcs
 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.
 
HB1599 Enrolled            -47-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -48-                LRB9207178TAcs
 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%
 
HB1599 Enrolled            -49-                LRB9207178TAcs
 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        Beginning January 1,  1990,  each  month  the  Department
19    shall  pay  into the Local Government Tax Fund 16% 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 which is purchased outside Illinois at retail from a
23    retailer and which is titled or registered by  an  agency  of
24    this State's government.
25        Of the remainder of the moneys received by the Department
26    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
27    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
28    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
29    into the Build Illinois Fund; provided, however, that  if  in
30    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31    as  the case may be, of the moneys received by the Department
32    and required to be paid into the Build Illinois Fund pursuant
33    to Section 3 of the Retailers' Occupation Tax Act, Section  9
34    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 
HB1599 Enrolled            -50-                LRB9207178TAcs
 1    Section  9 of the Service Occupation Tax Act, such Acts being
 2    hereinafter called the "Tax Acts" and such aggregate of  2.2%
 3    or  3.8%,  as  the  case  may be, of moneys being hereinafter
 4    called the "Tax Act Amount", and (2) the  amount  transferred
 5    to the Build Illinois Fund from the State and Local Sales Tax
 6    Reform  Fund  shall  be less than the Annual Specified Amount
 7    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
 8    Act),  an amount equal to the difference shall be immediately
 9    paid into the Build Illinois Fund from other moneys  received
10    by  the  Department  pursuant  to  the  Tax Acts; and further
11    provided, that if on the last business day of any  month  the
12    sum  of  (1) the Tax Act Amount required to be deposited into
13    the Build Illinois Bond Account in the  Build  Illinois  Fund
14    during  such month and (2) the amount transferred during such
15    month to the Build Illinois Fund from  the  State  and  Local
16    Sales  Tax  Reform Fund shall have been less than 1/12 of the
17    Annual Specified Amount, an amount equal  to  the  difference
18    shall  be  immediately paid into the Build Illinois Fund from
19    other moneys received by the Department pursuant to  the  Tax
20    Acts;  and,  further  provided,  that  in  no event shall the
21    payments required  under  the  preceding  proviso  result  in
22    aggregate  payments  into the Build Illinois Fund pursuant to
23    this clause (b) for any fiscal year in excess of the  greater
24    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
25    for such fiscal year; and, further provided, that the amounts
26    payable  into  the  Build Illinois Fund under this clause (b)
27    shall be payable only until such time as the aggregate amount
28    on deposit under each trust indenture securing  Bonds  issued
29    and  outstanding  pursuant  to the Build Illinois Bond Act is
30    sufficient, taking into account any future investment income,
31    to fully provide, in accordance with such indenture, for  the
32    defeasance of or the payment of the principal of, premium, if
33    any,  and interest on the Bonds secured by such indenture and
34    on any Bonds expected to be issued thereafter  and  all  fees
 
HB1599 Enrolled            -51-                LRB9207178TAcs
 1    and  costs  payable with respect thereto, all as certified by
 2    the Director of the Bureau of the Budget.   If  on  the  last
 3    business  day  of  any  month  in which Bonds are outstanding
 4    pursuant to the Build Illinois Bond Act, the aggregate of the
 5    moneys deposited in the Build Illinois Bond  Account  in  the
 6    Build  Illinois  Fund  in  such  month shall be less than the
 7    amount required to be transferred  in  such  month  from  the
 8    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
 9    Retirement and Interest Fund pursuant to Section  13  of  the
10    Build  Illinois  Bond Act, an amount equal to such deficiency
11    shall be immediately paid from other moneys received  by  the
12    Department  pursuant  to  the  Tax Acts to the Build Illinois
13    Fund; provided, however, that any amounts paid to  the  Build
14    Illinois  Fund  in  any fiscal year pursuant to this sentence
15    shall be deemed to constitute payments pursuant to clause (b)
16    of  the  preceding  sentence  and  shall  reduce  the  amount
17    otherwise payable for such fiscal year pursuant to clause (b)
18    of the  preceding  sentence.   The  moneys  received  by  the
19    Department  pursuant to this Act and required to be deposited
20    into the Build Illinois Fund are subject to the pledge, claim
21    and charge set forth in Section 12 of the Build Illinois Bond
22    Act.
23        Subject to payment of amounts  into  the  Build  Illinois
24    Fund  as  provided  in  the  preceding  paragraph  or  in any
25    amendment thereto hereafter enacted, the following  specified
26    monthly   installment   of   the   amount  requested  in  the
27    certificate of the Chairman  of  the  Metropolitan  Pier  and
28    Exposition  Authority  provided  under  Section  8.25f of the
29    State Finance Act, but not in excess of the  sums  designated
30    as  "Total Deposit", shall be deposited in the aggregate from
31    collections under Section 9 of the Use Tax Act, Section 9  of
32    the  Service Use Tax Act, Section 9 of the Service Occupation
33    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
34    into  the  McCormick  Place  Expansion  Project  Fund  in the
 
HB1599 Enrolled            -52-                LRB9207178TAcs
 1    specified fiscal years.
 2             Fiscal Year                   Total Deposit
 3                 1993                            $0
 4                 1994                        53,000,000
 5                 1995                        58,000,000
 6                 1996                        61,000,000
 7                 1997                        64,000,000
 8                 1998                        68,000,000
 9                 1999                        71,000,000
10                 2000                        75,000,000
11                 2001                        80,000,000
12                 2002                        84,000,000
13                 2003                        89,000,000
14                 2004                        93,000,000
15                 2005                        97,000,000
16                 2006                       102,000,000
17                 2007                       108,000,000
18                 2008                       115,000,000
19                 2009                       120,000,000
20                 2010                       126,000,000
21                 2011                       132,000,000
22                 2012                       138,000,000
23                 2013 and                   145,000,000
24        each fiscal year
25        thereafter that bonds
26        are outstanding under
27        Section 13.2 of the
28        Metropolitan Pier and
29        Exposition Authority
30        Act, but not after fiscal year 2029.
31        Beginning July 20, 1993 and in each month of each  fiscal
32    year  thereafter,  one-eighth  of the amount requested in the
33    certificate of the Chairman  of  the  Metropolitan  Pier  and
34    Exposition  Authority  for  that fiscal year, less the amount
 
HB1599 Enrolled            -53-                LRB9207178TAcs
 1    deposited into the McCormick Place Expansion Project Fund  by
 2    the  State Treasurer in the respective month under subsection
 3    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 4    Authority  Act,  plus cumulative deficiencies in the deposits
 5    required under this Section for previous  months  and  years,
 6    shall be deposited into the McCormick Place Expansion Project
 7    Fund,  until  the  full amount requested for the fiscal year,
 8    but not in excess of the amount  specified  above  as  "Total
 9    Deposit", has been deposited.
10        Subject  to  payment  of  amounts into the Build Illinois
11    Fund and the McCormick Place Expansion Project Fund  pursuant
12    to  the  preceding  paragraphs  or  in  any amendment thereto
13    hereafter enacted, each month the Department shall  pay  into
14    the Local Government Distributive Fund .4% of the net revenue
15    realized for the preceding month from the 5% general rate, or
16    .4%  of  80%  of  the  net revenue realized for the preceding
17    month from the 6.25% general rate, as the case may be, on the
18    selling price of  tangible  personal  property  which  amount
19    shall,  subject  to appropriation, be distributed as provided
20    in Section 2 of the State Revenue Sharing Act. No payments or
21    distributions pursuant to this paragraph shall be made if the
22    tax imposed  by  this  Act  on  photoprocessing  products  is
23    declared  unconstitutional,  or if the proceeds from such tax
24    are unavailable for distribution because of litigation.
25        Subject to payment of amounts  into  the  Build  Illinois
26    Fund,  the  McCormick  Place  Expansion Project Fund, and the
27    Local Government Distributive Fund pursuant to the  preceding
28    paragraphs  or  in  any amendments thereto hereafter enacted,
29    beginning July 1, 1993, the Department shall each  month  pay
30    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
31    revenue realized for  the  preceding  month  from  the  6.25%
32    general  rate  on  the  selling  price  of  tangible personal
33    property.
34        Subject to payment of amounts  into  the  Build  Illinois
 
HB1599 Enrolled            -54-                LRB9207178TAcs
 1    Fund,  the  McCormick  Place  Expansion Project Fund, and the
 2    Local Government Distributive Fund pursuant to the  preceding
 3    paragraphs  or  in  any amendments thereto hereafter enacted,
 4    beginning with the receipt of the first report of taxes  paid
 5    by  an eligible business and continuing for a 25-year period,
 6    the  Department  shall  each  month  pay  into   the   Energy
 7    Infrastructure  Fund 80% of the net revenue realized from the
 8    6.25% general rate on the  selling  price  of  Illinois-mined
 9    coal  that was sold to an eligible business.  For purposes of
10    this paragraph, the term  "eligible  business"  means  a  new
11    electric  generating  facility  certified pursuant to Section
12    605-332 of the Department of Commerce and  Community  Affairs
13    Law of the Civil Administrative Code of Illinois.
14        Of the remainder of the moneys received by the Department
15    pursuant  to  this  Act,  75%  thereof shall be paid into the
16    State Treasury and 25% shall be reserved in a special account
17    and used only for the transfer to the Common School  Fund  as
18    part of the monthly transfer from the General Revenue Fund in
19    accordance with Section 8a of the State Finance Act.
20        As  soon  as  possible after the first day of each month,
21    upon  certification  of  the  Department  of   Revenue,   the
22    Comptroller  shall  order transferred and the Treasurer shall
23    transfer from the General Revenue Fund to the Motor Fuel  Tax
24    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
25    realized under this  Act  for  the  second  preceding  month.
26    Beginning  April 1, 2000, this transfer is no longer required
27    and shall not be made.
28        Net revenue realized for a month  shall  be  the  revenue
29    collected  by the State pursuant to this Act, less the amount
30    paid out during  that  month  as  refunds  to  taxpayers  for
31    overpayment of liability.
32        For  greater simplicity of administration, manufacturers,
33    importers and wholesalers whose products are sold  at  retail
34    in Illinois by numerous retailers, and who wish to do so, may
 
HB1599 Enrolled            -55-                LRB9207178TAcs
 1    assume  the  responsibility  for accounting and paying to the
 2    Department all tax accruing under this Act  with  respect  to
 3    such  sales,  if  the  retailers who are affected do not make
 4    written objection to the Department to this arrangement.
 5    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
 6    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
 7    7-12-99;  91-541,  eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
 8    eff. 1-1-01; revised 8-30-00.)

 9        Section 925.  The Service  Use  Tax  Act  is  amended  by
10    changing Section 9 as follows:

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
 
HB1599 Enrolled            -56-                LRB9207178TAcs
 1    information as the Department may reasonably require.
 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 business as a serviceman in this
13        State;
14             3.  The total amount of taxable receipts received by
15        him   during  the  preceding  calendar  month,  including
16        receipts  from  charge  and  time  sales,  but  less  all
17        deductions allowed by law;
18             4.  The amount of credit provided in Section  2d  of
19        this Act;
20             5.  The amount of tax due;
21             5-5.  The signature of the taxpayer; and
22             6.  Such   other   reasonable   information  as  the
23        Department may require.
24        If a taxpayer fails to sign a return within 30 days after
25    the proper notice and demand for signature by the Department,
26    the return shall be considered valid and any amount shown  to
27    be due on the return shall be deemed assessed.
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
 
HB1599 Enrolled            -57-                LRB9207178TAcs
 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 1,
 4    2000, a taxpayer who has an annual tax liability of  $200,000
 5    or  more  shall  make  all  payments required by rules of the
 6    Department by electronic funds transfer.   The  term  "annual
 7    tax liability" shall be the sum of the taxpayer's liabilities
 8    under   this  Act,  and  under  all  other  State  and  local
 9    occupation and use tax laws administered by  the  Department,
10    for  the  immediately  preceding  calendar  year.    The term
11    "average  monthly  tax  liability"  means  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 required
19    to  make  payments  by  electronic  funds transfer shall make
20    those payments for a minimum of one year beginning on October
21    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        If the serviceman is otherwise required to file a monthly
33    return  and if the serviceman's average monthly tax liability
34    to the Department does not exceed $200,  the  Department  may
 
HB1599 Enrolled            -58-                LRB9207178TAcs
 1    authorize  his returns to be filed on a quarter annual basis,
 2    with the return for January, February and March  of  a  given
 3    year  being due by April 20 of such year; with the return for
 4    April, May and June of a given year being due by July  20  of
 5    such  year; with the return for July, August and September of
 6    a given year being due by October 20 of such year,  and  with
 7    the return for October, November and December of a given year
 8    being due by January 20 of the following year.
 9        If the serviceman is otherwise required to file a monthly
10    or  quarterly  return and if the serviceman's average monthly
11    tax liability to the Department  does  not  exceed  $50,  the
12    Department may authorize his returns to be filed on an annual
13    basis,  with the return for a given year being due by January
14    20 of the following year.
15        Such quarter annual and annual returns, as  to  form  and
16    substance,  shall  be  subject  to  the  same requirements as
17    monthly returns.
18        Notwithstanding  any  other   provision   in   this   Act
19    concerning  the  time  within which a serviceman may file his
20    return, in the case of any serviceman who ceases to engage in
21    a kind of business which makes  him  responsible  for  filing
22    returns  under  this  Act, such serviceman shall file a final
23    return under this Act with the Department  not  more  than  1
24    month after discontinuing such business.
25        Where  a  serviceman collects the tax with respect to the
26    selling price of property which he sells  and  the  purchaser
27    thereafter  returns  such property and the serviceman refunds
28    the selling price thereof to the purchaser,  such  serviceman
29    shall  also  refund,  to  the purchaser, the tax so collected
30    from the purchaser. When filing his return for the period  in
31    which  he  refunds  such tax to the purchaser, the serviceman
32    may deduct the amount of the tax so refunded by  him  to  the
33    purchaser  from any other Service Use Tax, Service Occupation
34    Tax,  retailers'  occupation  tax  or  use  tax  which   such
 
HB1599 Enrolled            -59-                LRB9207178TAcs
 1    serviceman may be required to pay or remit to the Department,
 2    as  shown by such return, provided that the amount of the tax
 3    to be deducted shall previously have  been  remitted  to  the
 4    Department  by  such  serviceman. If the serviceman shall not
 5    previously have remitted  the  amount  of  such  tax  to  the
 6    Department,  he  shall  be entitled to no deduction hereunder
 7    upon refunding such tax to the purchaser.
 8        Any serviceman  filing  a  return  hereunder  shall  also
 9    include  the  total  tax  upon  the selling price of tangible
10    personal property purchased for use by him as an incident  to
11    a sale of service, and such serviceman shall remit the amount
12    of such tax to the Department when filing such return.
13        If  experience  indicates  such action to be practicable,
14    the Department may prescribe and  furnish  a  combination  or
15    joint  return  which will enable servicemen, who are required
16    to  file  returns  hereunder  and  also  under  the   Service
17    Occupation  Tax  Act,  to  furnish all the return information
18    required by both Acts on the one form.
19        Where  the  serviceman  has  more   than   one   business
20    registered  with  the  Department under separate registration
21    hereunder, such serviceman shall not file each return that is
22    due  as  a  single  return  covering  all   such   registered
23    businesses,  but  shall  file  separate returns for each such
24    registered business.
25        Beginning January 1,  1990,  each  month  the  Department
26    shall pay into the State and Local Tax Reform Fund, a special
27    fund  in the State Treasury, the net revenue realized for the
28    preceding month from the 1% tax on sales of  food  for  human
29    consumption which is to be consumed off the premises where it
30    is sold (other than alcoholic beverages, soft drinks and food
31    which  has  been  prepared  for  immediate  consumption)  and
32    prescription  and  nonprescription  medicines, drugs, medical
33    appliances and insulin, urine testing materials, syringes and
34    needles used by diabetics.
 
HB1599 Enrolled            -60-                LRB9207178TAcs
 1        Beginning January 1,  1990,  each  month  the  Department
 2    shall  pay into the State and Local Sales Tax Reform Fund 20%
 3    of the net revenue realized for the preceding month from  the
 4    6.25%   general   rate  on  transfers  of  tangible  personal
 5    property, other than  tangible  personal  property  which  is
 6    purchased  outside  Illinois  at  retail  from a retailer and
 7    which is titled or registered by an agency  of  this  State's
 8    government.
 9        Beginning August 1, 2000, each month the Department shall
10    pay  into  the  State and Local Sales Tax Reform Fund 100% of
11    the net revenue realized for the  preceding  month  from  the
12    1.25% rate on the selling price of motor fuel and gasohol.
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
 
HB1599 Enrolled            -61-                LRB9207178TAcs
 1    the Build Illinois Bond Account in the  Build  Illinois  Fund
 2    during  such month and (2) the amount transferred during such
 3    month to the Build Illinois Fund from  the  State  and  Local
 4    Sales  Tax  Reform Fund shall have been less than 1/12 of the
 5    Annual Specified Amount, an amount equal  to  the  difference
 6    shall  be  immediately paid into the Build Illinois Fund from
 7    other moneys received by the Department pursuant to  the  Tax
 8    Acts;  and,  further  provided,  that  in  no event shall the
 9    payments required  under  the  preceding  proviso  result  in
10    aggregate  payments  into the Build Illinois Fund pursuant to
11    this clause (b) for any fiscal year in excess of the  greater
12    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
13    for such fiscal year; and, further provided, that the amounts
14    payable  into  the  Build Illinois Fund under this clause (b)
15    shall be payable only until such time as the aggregate amount
16    on deposit under each trust indenture securing  Bonds  issued
17    and  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
 
HB1599 Enrolled            -62-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -63-                LRB9207178TAcs
 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 Act,
18        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
 
HB1599 Enrolled            -64-                LRB9207178TAcs
 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  photo  processing
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        Subject  to  payment  of  amounts into the Build Illinois
24    Fund, the McCormick Place Expansion  Project  Fund,  and  the
25    Local  Government Distributive Fund pursuant to the preceding
26    paragraphs or in any amendments  thereto  hereafter  enacted,
27    beginning  with the receipt of the first report of taxes paid
28    by an eligible business and continuing for a 25-year  period,
29    the   Department   shall  each  month  pay  into  the  Energy
30    Infrastructure Fund 80% of the net revenue realized from  the
31    6.25%  general  rate  on  the selling price of Illinois-mined
32    coal that was sold to an eligible business.  For purposes  of
33    this  paragraph,  the  term  "eligible  business" means a new
34    electric generating facility certified  pursuant  to  Section
 
HB1599 Enrolled            -65-                LRB9207178TAcs
 1    605-332  of  the Department of Commerce and Community Affairs
 2    Law of the Civil Administrative Code of Illinois.
 3        All remaining moneys received by the Department  pursuant
 4    to  this  Act  shall be paid into the General Revenue Fund of
 5    the State Treasury.
 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    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
19    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
20    91-872, eff. 7-1-00.)

21        Section  930.   The Service Occupation Tax Act is amended
22    by changing Section 9 as follows:

23        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
24        Sec.  9.   Each  serviceman  required  or  authorized  to
25    collect the tax herein imposed shall pay  to  the  Department
26    the  amount  of  such  tax at the time when he is required to
27    file his return for the period  during  which  such  tax  was
28    collectible,  less  a  discount  of  2.1% prior to January 1,
29    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
30    calendar  year,  whichever  is  greater,  which is allowed to
31    reimburse the serviceman for expenses incurred in  collecting
32    the  tax,  keeping  records,  preparing  and  filing returns,
 
HB1599 Enrolled            -66-                LRB9207178TAcs
 1    remitting the tax and supplying data  to  the  Department  on
 2    request.
 3        Where  such  tangible  personal  property is sold under a
 4    conditional sales contract, or under any other form  of  sale
 5    wherein  the payment of the principal sum, or a part thereof,
 6    is extended beyond the close of  the  period  for  which  the
 7    return  is  filed,  the serviceman, in collecting the tax may
 8    collect, for each tax return period, only the tax  applicable
 9    to  the  part  of  the selling price actually received during
10    such tax return period.
11        Except as provided hereinafter in  this  Section,  on  or
12    before  the  twentieth  day  of  each  calendar  month,  such
13    serviceman  shall  file  a  return for the preceding calendar
14    month in accordance with reasonable rules and regulations  to
15    be  promulgated  by  the  Department of Revenue.  Such return
16    shall be filed on a form prescribed  by  the  Department  and
17    shall   contain   such  information  as  the  Department  may
18    reasonably require.
19        The Department may require  returns  to  be  filed  on  a
20    quarterly  basis.  If so required, a return for each calendar
21    quarter shall be filed on or before the twentieth day of  the
22    calendar  month  following  the end of such calendar quarter.
23    The taxpayer shall also file a return with the Department for
24    each of the first two months of each calendar quarter, on  or
25    before  the  twentieth  day  of the following calendar month,
26    stating:
27             1.  The name of the seller;
28             2.  The address of the principal place  of  business
29        from which he engages in business as a serviceman in this
30        State;
31             3.  The total amount of taxable receipts received by
32        him   during  the  preceding  calendar  month,  including
33        receipts  from  charge  and  time  sales,  but  less  all
34        deductions allowed by law;
 
HB1599 Enrolled            -67-                LRB9207178TAcs
 1             4.  The amount of credit provided in Section  2d  of
 2        this Act;
 3             5.  The amount of tax due;
 4             5-5.  The signature of the taxpayer; and
 5             6.  Such   other   reasonable   information  as  the
 6        Department may require.
 7        If a taxpayer fails to sign a return within 30 days after
 8    the proper notice and demand for signature by the Department,
 9    the return shall be considered valid and any amount shown  to
10    be due on the return shall be deemed assessed.
11        A  serviceman may accept a Manufacturer's Purchase Credit
12    certification from a purchaser in satisfaction of Service Use
13    Tax as provided in Section 3-70 of the Service Use Tax Act if
14    the  purchaser  provides  the  appropriate  documentation  as
15    required by Section 3-70 of the  Service  Use  Tax  Act.    A
16    Manufacturer's  Purchase  Credit certification, accepted by a
17    serviceman as provided in Section 3-70 of the Service Use Tax
18    Act, may be  used  by  that  serviceman  to  satisfy  Service
19    Occupation  Tax  liability  in  the  amount  claimed  in  the
20    certification, not to exceed 6.25% of the receipts subject to
21    tax from a qualifying purchase.
22        If  the serviceman's average monthly tax liability to the
23    Department does not exceed $200, the Department may authorize
24    his returns to be filed on a quarter annual basis,  with  the
25    return  for January, February and March of a given year being
26    due by April 20 of such year; with the return for April,  May
27    and  June  of a given year being due by July 20 of such year;
28    with the return for July, August and  September  of  a  given
29    year  being  due  by  October  20  of such year, and with the
30    return for October, November and December  of  a  given  year
31    being due by January 20 of the following year.
32        If  the serviceman's average monthly tax liability to the
33    Department does not exceed $50, the Department may  authorize
34    his  returns  to be filed on an annual basis, with the return
 
HB1599 Enrolled            -68-                LRB9207178TAcs
 1    for a given year being due by January  20  of  the  following
 2    year.
 3        Such  quarter  annual  and annual returns, as to form and
 4    substance, shall be  subject  to  the  same  requirements  as
 5    monthly returns.
 6        Notwithstanding   any   other   provision   in  this  Act
 7    concerning the time within which a serviceman  may  file  his
 8    return, in the case of any serviceman who ceases to engage in
 9    a  kind  of  business  which makes him responsible for filing
10    returns under this Act, such serviceman shall  file  a  final
11    return  under  this  Act  with the Department not more than 1
12    month after discontinuing such business.
13        Beginning October 1, 1993, a taxpayer who has an  average
14    monthly  tax  liability  of  $150,000  or more shall make all
15    payments required by rules of the  Department  by  electronic
16    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
17    has an average monthly tax  liability  of  $100,000  or  more
18    shall  make  all payments required by rules of the Department
19    by electronic funds transfer.  Beginning October 1,  1995,  a
20    taxpayer  who has an average monthly tax liability of $50,000
21    or more shall make all payments  required  by  rules  of  the
22    Department  by  electronic funds transfer.  Beginning October
23    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
24    $200,000 or more shall make all payments required by rules of
25    the  Department  by  electronic  funds  transfer.   The  term
26    "annual  tax  liability"  shall  be the sum of the taxpayer's
27    liabilities under this Act, and under  all  other  State  and
28    local  occupation  and  use  tax  laws  administered  by  the
29    Department,  for the immediately preceding calendar year. The
30    term "average monthly tax liability" means  the  sum  of  the
31    taxpayer's  liabilities  under  this Act, and under all other
32    State and local occupation and use tax laws  administered  by
33    the  Department,  for the immediately preceding calendar year
34    divided by 12.
 
HB1599 Enrolled            -69-                LRB9207178TAcs
 1        Before August 1 of  each  year  beginning  in  1993,  the
 2    Department  shall  notify  all  taxpayers  required  to  make
 3    payments   by  electronic  funds  transfer.    All  taxpayers
 4    required to make payments by electronic funds transfer  shall
 5    make  those  payments  for a minimum of one year beginning on
 6    October 1.
 7        Any taxpayer not required to make payments by  electronic
 8    funds transfer may make payments by electronic funds transfer
 9    with the permission of the Department.
10        All  taxpayers  required  to  make  payment by electronic
11    funds transfer and any taxpayers  authorized  to  voluntarily
12    make  payments  by electronic funds transfer shall make those
13    payments in the manner authorized by the Department.
14        The Department shall adopt such rules as are necessary to
15    effectuate a program of electronic  funds  transfer  and  the
16    requirements of this Section.
17        Where  a  serviceman collects the tax with respect to the
18    selling price of tangible personal property  which  he  sells
19    and  the  purchaser thereafter returns such tangible personal
20    property and the serviceman refunds the selling price thereof
21    to the purchaser, such serviceman shall also refund,  to  the
22    purchaser,  the  tax  so  collected from the purchaser.  When
23    filing his return for the period in which he refunds such tax
24    to the purchaser, the serviceman may deduct the amount of the
25    tax so refunded by  him  to  the  purchaser  from  any  other
26    Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
27    Occupation Tax or  Use  Tax  which  such  serviceman  may  be
28    required  to pay or remit to the Department, as shown by such
29    return, provided that the amount of the tax  to  be  deducted
30    shall previously have been remitted to the Department by such
31    serviceman.   If  the  serviceman  shall  not previously have
32    remitted the amount of such tax to the Department,  he  shall
33    be entitled to no deduction hereunder upon refunding such tax
34    to the purchaser.
 
HB1599 Enrolled            -70-                LRB9207178TAcs
 1        If  experience  indicates  such action to be practicable,
 2    the Department may prescribe and  furnish  a  combination  or
 3    joint  return  which will enable servicemen, who are required
 4    to file returns  hereunder  and  also  under  the  Retailers'
 5    Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
 6    Act, to furnish all the return information  required  by  all
 7    said Acts on the one form.
 8        Where   the   serviceman   has  more  than  one  business
 9    registered with the Department under  separate  registrations
10    hereunder,  such  serviceman  shall file separate returns for
11    each registered business.
12        Beginning January 1,  1990,  each  month  the  Department
13    shall  pay  into  the  Local  Government Tax Fund the revenue
14    realized for the preceding month from the 1% tax on sales  of
15    food  for  human  consumption which is to be consumed off the
16    premises where it is sold (other  than  alcoholic  beverages,
17    soft  drinks  and  food which has been prepared for immediate
18    consumption) and prescription and nonprescription  medicines,
19    drugs,   medical   appliances   and  insulin,  urine  testing
20    materials, syringes and needles used by diabetics.
21        Beginning January 1,  1990,  each  month  the  Department
22    shall  pay  into the County and Mass Transit District Fund 4%
23    of the revenue realized for  the  preceding  month  from  the
24    6.25% general rate.
25        Beginning August 1, 2000, each month the Department shall
26    pay into the County and Mass Transit District Fund 20% of the
27    net  revenue  realized for the preceding month from the 1.25%
28    rate on the selling price of motor fuel and gasohol.
29        Beginning January 1,  1990,  each  month  the  Department
30    shall  pay  into  the  Local  Government  Tax Fund 16% of the
31    revenue realized for  the  preceding  month  from  the  6.25%
32    general rate on transfers of tangible personal property.
33        Beginning August 1, 2000, each month the Department shall
34    pay into the Local Government Tax Fund 80% of the net revenue
 
HB1599 Enrolled            -71-                LRB9207178TAcs
 1    realized  for  the preceding month from the 1.25% rate on the
 2    selling price of motor fuel and gasohol.
 3        Of the remainder of the moneys received by the Department
 4    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
 5    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
 6    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
 7    into  the  Build Illinois Fund; provided, however, that if in
 8    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 9    as the case may be, of the moneys received by the  Department
10    and required to be paid into the Build Illinois Fund pursuant
11    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
12    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
13    Section 9 of the Service Occupation Tax Act, such Acts  being
14    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
15    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
16    called  the  "Tax Act Amount", and (2) the amount transferred
17    to the Build Illinois Fund from the State and Local Sales Tax
18    Reform Fund shall be less than the  Annual  Specified  Amount
19    (as  defined  in  Section  3 of the Retailers' Occupation Tax
20    Act), an amount equal to the difference shall be  immediately
21    paid  into the Build Illinois Fund from other moneys received
22    by the Department pursuant  to  the  Tax  Acts;  and  further
23    provided,  that  if on the last business day of any month the
24    sum of (1) the Tax Act Amount required to be  deposited  into
25    the  Build Illinois Account in the Build Illinois Fund during
26    such month and (2) the amount transferred during  such  month
27    to the Build Illinois Fund from the State and Local Sales Tax
28    Reform  Fund  shall  have  been  less than 1/12 of the Annual
29    Specified Amount, an amount equal to the difference shall  be
30    immediately  paid  into  the  Build  Illinois Fund from other
31    moneys received by the Department pursuant to the  Tax  Acts;
32    and,  further  provided,  that in no event shall the payments
33    required under the  preceding  proviso  result  in  aggregate
34    payments into the Build Illinois Fund pursuant to this clause
 
HB1599 Enrolled            -72-                LRB9207178TAcs
 1    (b)  for  any fiscal year in excess of the greater of (i) the
 2    Tax Act Amount or (ii) the Annual Specified Amount  for  such
 3    fiscal  year; and, further provided, that the amounts payable
 4    into the Build Illinois Fund under this clause (b)  shall  be
 5    payable  only  until  such  time  as  the aggregate amount on
 6    deposit under each trust indenture securing Bonds issued  and
 7    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
 8    sufficient, taking into account any future investment income,
 9    to fully provide, in accordance with such indenture, for  the
10    defeasance of or the payment of the principal of, premium, if
11    any,  and interest on the Bonds secured by such indenture and
12    on any Bonds expected to be issued thereafter  and  all  fees
13    and  costs  payable with respect thereto, all as certified by
14    the 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 the
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  preceding  sentence  and  shall  reduce  the  amount
29    otherwise payable for such fiscal year pursuant to clause (b)
30    of the  preceding  sentence.   The  moneys  received  by  the
31    Department  pursuant to this Act and required to be deposited
32    into the Build Illinois Fund are subject to the pledge, claim
33    and charge set forth in Section 12 of the Build Illinois Bond
34    Act.
 
HB1599 Enrolled            -73-                LRB9207178TAcs
 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 the  sums  designated
 8    as  "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
 
HB1599 Enrolled            -74-                LRB9207178TAcs
 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
 
HB1599 Enrolled            -75-                LRB9207178TAcs
 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  Fund,  and  the
 6    Local  Government Distributive Fund pursuant to the preceding
 7    paragraphs or in any amendments  thereto  hereafter  enacted,
 8    beginning  July  1, 1993, the Department shall each month pay
 9    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
10    revenue  realized  for  the  preceding  month  from the 6.25%
11    general rate  on  the  selling  price  of  tangible  personal
12    property.
13        Subject  to  payment  of  amounts into the Build Illinois
14    Fund, the McCormick Place Expansion  Project  Fund,  and  the
15    Local  Government Distributive Fund pursuant to the preceding
16    paragraphs or in any amendments  thereto  hereafter  enacted,
17    beginning  with the receipt of the first report of taxes paid
18    by an eligible business and continuing for a 25-year  period,
19    the   Department   shall  each  month  pay  into  the  Energy
20    Infrastructure Fund 80% of the net revenue realized from  the
21    6.25%  general  rate  on  the selling price of Illinois-mined
22    coal that was sold to an eligible business.  For purposes  of
23    this  paragraph,  the  term  "eligible  business" means a new
24    electric generating facility certified  pursuant  to  Section
25    605-332  of  the Department of Commerce and Community Affairs
26    Law of the Civil Administrative Code of Illinois.
27        Remaining moneys received by the Department  pursuant  to
28    this  Act  shall be paid into the General Revenue Fund of the
29    State Treasury.
30        The Department may, upon separate  written  notice  to  a
31    taxpayer,  require  the taxpayer to prepare and file with the
32    Department on a form prescribed by the Department within  not
33    less  than  60  days  after  receipt  of the notice an annual
34    information return for the tax year specified in the  notice.
 
HB1599 Enrolled            -76-                LRB9207178TAcs
 1    Such   annual  return  to  the  Department  shall  include  a
 2    statement of gross receipts as shown by the  taxpayer's  last
 3    Federal  income  tax  return.   If  the total receipts of the
 4    business as reported in the Federal income tax return do  not
 5    agree  with  the gross receipts reported to the Department of
 6    Revenue for the same period, the taxpayer shall attach to his
 7    annual return a schedule showing a reconciliation  of  the  2
 8    amounts  and  the reasons for the difference.  The taxpayer's
 9    annual return to the Department shall also disclose the  cost
10    of goods sold by the taxpayer during the year covered by such
11    return,  opening  and  closing  inventories of such goods for
12    such year, cost of goods used from stock or taken from  stock
13    and  given  away  by  the taxpayer during such year, pay roll
14    information of the taxpayer's business during such  year  and
15    any  additional  reasonable  information which the Department
16    deems would be helpful in determining  the  accuracy  of  the
17    monthly,  quarterly  or annual returns filed by such taxpayer
18    as hereinbefore provided for in this Section.
19        If the annual information return required by this Section
20    is not filed when and as  required,  the  taxpayer  shall  be
21    liable as follows:
22             (i)  Until  January  1,  1994, the taxpayer shall be
23        liable for a penalty equal to 1/6 of 1% of  the  tax  due
24        from such taxpayer under this Act during the period to be
25        covered  by  the annual return for each month or fraction
26        of a month until such return is filed  as  required,  the
27        penalty  to  be assessed and collected in the same manner
28        as any other penalty provided for in this Act.
29             (ii)  On and after January  1,  1994,  the  taxpayer
30        shall be liable for a penalty as described in Section 3-4
31        of the Uniform Penalty and Interest Act.
32        The chief executive officer, proprietor, owner or highest
33    ranking  manager  shall sign the annual return to certify the
34    accuracy of the information contained  therein.   Any  person
 
HB1599 Enrolled            -77-                LRB9207178TAcs
 1    who  willfully  signs  the  annual return containing false or
 2    inaccurate  information  shall  be  guilty  of  perjury   and
 3    punished  accordingly.   The annual return form prescribed by
 4    the Department  shall  include  a  warning  that  the  person
 5    signing the return may be liable for perjury.
 6        The  foregoing  portion  of  this  Section concerning the
 7    filing of an annual information return shall not apply  to  a
 8    serviceman  who  is not required to file an income tax return
 9    with the United States Government.
10        As soon as possible after the first day  of  each  month,
11    upon   certification   of  the  Department  of  Revenue,  the
12    Comptroller shall order transferred and the  Treasurer  shall
13    transfer  from the General Revenue Fund to the Motor Fuel Tax
14    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
15    realized  under  this  Act  for  the  second preceding month.
16    Beginning April 1, 2000, this transfer is no longer  required
17    and shall not be made.
18        Net  revenue  realized  for  a month shall be the revenue
19    collected by the State pursuant to this Act, less the  amount
20    paid  out  during  that  month  as  refunds  to taxpayers for
21    overpayment of liability.
22        For greater simplicity of  administration,  it  shall  be
23    permissible  for  manufacturers,  importers  and  wholesalers
24    whose  products  are sold by numerous servicemen in Illinois,
25    and who wish to do  so,  to  assume  the  responsibility  for
26    accounting  and  paying  to  the  Department all tax accruing
27    under this Act with respect to such sales, if the  servicemen
28    who  are  affected  do  not  make  written  objection  to the
29    Department to this arrangement.
30    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
31    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
32    91-872, eff. 7-1-00.)

33        Section  935.   The  Retailers'  Occupation  Tax  Act  is
 
HB1599 Enrolled            -78-                LRB9207178TAcs
 1    amended by changing Section 3 as follows:

 2        (35 ILCS 120/3) (from Ch. 120, par. 442)
 3        Sec. 3.  Except as provided in this Section, on or before
 4    the  twentieth  day  of  each  calendar  month,  every person
 5    engaged in the business of selling tangible personal property
 6    at retail in this State during the preceding  calendar  month
 7    shall file a return with the Department, stating:
 8             1.  The name of the seller;
 9             2.  His  residence  address  and  the address of his
10        principal place  of  business  and  the  address  of  the
11        principal  place  of  business  (if  that  is a different
12        address) from which he engages in the business of selling
13        tangible personal property at retail in this State;
14             3.  Total amount of receipts received by him  during
15        the  preceding calendar month or quarter, as the case may
16        be, from sales of tangible personal  property,  and  from
17        services furnished, by him during such preceding calendar
18        month or quarter;
19             4.  Total   amount   received   by  him  during  the
20        preceding calendar month or quarter on  charge  and  time
21        sales  of  tangible  personal property, and from services
22        furnished, by him prior to the month or quarter for which
23        the return is filed;
24             5.  Deductions allowed by law;
25             6.  Gross receipts which were received by him during
26        the preceding calendar month  or  quarter  and  upon  the
27        basis of which the tax is imposed;
28             7.  The  amount  of credit provided in Section 2d of
29        this Act;
30             8.  The amount of tax due;
31             9.  The signature of the taxpayer; and
32             10.  Such  other  reasonable  information   as   the
33        Department may require.
 
HB1599 Enrolled            -79-                LRB9207178TAcs
 1        If a taxpayer fails to sign a return within 30 days after
 2    the proper notice and demand for signature by the Department,
 3    the  return shall be considered valid and any amount shown to
 4    be due on the return shall be deemed assessed.
 5        Each return shall be  accompanied  by  the  statement  of
 6    prepaid tax issued pursuant to Section 2e for which credit is
 7    claimed.
 8        A  retailer  may  accept a Manufacturer's Purchase Credit
 9    certification from a purchaser in satisfaction of Use Tax  as
10    provided  in Section 3-85 of the Use Tax Act if the purchaser
11    provides the appropriate documentation as required by Section
12    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
13    certification,  accepted by a retailer as provided in Section
14    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
15    satisfy  Retailers'  Occupation  Tax  liability in the amount
16    claimed in the certification, not  to  exceed  6.25%  of  the
17    receipts subject to tax from a qualifying purchase.
18        The  Department  may  require  returns  to  be filed on a
19    quarterly basis.  If so required, a return for each  calendar
20    quarter  shall be filed on or before the twentieth day of the
21    calendar month following the end of  such  calendar  quarter.
22    The taxpayer shall also file a return with the Department for
23    each  of the first two months of each calendar quarter, on or
24    before the twentieth day of  the  following  calendar  month,
25    stating:
26             1.  The name of the seller;
27             2.  The  address  of the principal place of business
28        from which he engages in the business of selling tangible
29        personal property at retail in this State;
30             3.  The total amount of taxable receipts received by
31        him during the preceding calendar  month  from  sales  of
32        tangible  personal  property by him during such preceding
33        calendar month, including receipts from charge  and  time
34        sales, but less all deductions allowed by law;
 
HB1599 Enrolled            -80-                LRB9207178TAcs
 1             4.  The  amount  of credit provided in Section 2d of
 2        this Act;
 3             5.  The amount of tax due; and
 4             6.  Such  other  reasonable   information   as   the
 5        Department may require.
 6        If  a total amount of less than $1 is payable, refundable
 7    or creditable, such amount shall be disregarded if it is less
 8    than 50 cents and shall be increased to $1 if it is 50  cents
 9    or more.
10        Beginning  October 1, 1993, a taxpayer who has an average
11    monthly tax liability of $150,000  or  more  shall  make  all
12    payments  required  by  rules of the Department by electronic
13    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
14    has  an  average  monthly  tax  liability of $100,000 or more
15    shall make all payments required by rules of  the  Department
16    by  electronic  funds transfer.  Beginning October 1, 1995, a
17    taxpayer who has an average monthly tax liability of  $50,000
18    or  more  shall  make  all  payments required by rules of the
19    Department by electronic funds transfer.   Beginning  October
20    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
21    $200,000 or more shall make all payments required by rules of
22    the  Department  by  electronic  funds  transfer.   The  term
23    "annual tax liability" shall be the  sum  of  the  taxpayer's
24    liabilities  under  this  Act,  and under all other State and
25    local  occupation  and  use  tax  laws  administered  by  the
26    Department, for the immediately preceding calendar year.  The
27    term  "average monthly tax liability" shall be the sum of the
28    taxpayer's liabilities under this Act, and  under  all  other
29    State  and  local occupation and use tax laws administered by
30    the Department, for the immediately preceding  calendar  year
31    divided by 12.
32        Before  August  1  of  each  year  beginning in 1993, the
33    Department  shall  notify  all  taxpayers  required  to  make
34    payments  by  electronic  funds  transfer.    All   taxpayers
 
HB1599 Enrolled            -81-                LRB9207178TAcs
 1    required  to make payments by electronic funds transfer shall
 2    make those payments for a minimum of one  year  beginning  on
 3    October 1.
 4        Any  taxpayer not required to make payments by electronic
 5    funds transfer may make payments by electronic funds transfer
 6    with the permission of the Department.
 7        All taxpayers required  to  make  payment  by  electronic
 8    funds  transfer  and  any taxpayers authorized to voluntarily
 9    make payments by electronic funds transfer shall  make  those
10    payments in the manner authorized by the Department.
11        The Department shall adopt such rules as are necessary to
12    effectuate  a  program  of  electronic funds transfer and the
13    requirements of this Section.
14        Any amount which is required to be shown or  reported  on
15    any  return  or  other document under this Act shall, if such
16    amount is not a whole-dollar  amount,  be  increased  to  the
17    nearest  whole-dollar amount in any case where the fractional
18    part of a dollar is 50 cents or more, and  decreased  to  the
19    nearest  whole-dollar  amount  where the fractional part of a
20    dollar is less than 50 cents.
21        If the retailer is otherwise required to file  a  monthly
22    return and if the retailer's average monthly tax liability to
23    the  Department  does  not  exceed  $200,  the Department may
24    authorize his returns to be filed on a quarter annual  basis,
25    with  the  return  for January, February and March of a given
26    year being due by April 20 of such year; with the return  for
27    April,  May  and June of a given year being due by July 20 of
28    such year; with the return for July, August and September  of
29    a  given  year being due by October 20 of such year, and with
30    the return for October, November and December of a given year
31    being due by January 20 of the following year.
32        If the retailer is otherwise required to file  a  monthly
33    or quarterly return and if the retailer's average monthly tax
34    liability  with  the  Department  does  not  exceed  $50, the
 
HB1599 Enrolled            -82-                LRB9207178TAcs
 1    Department may authorize his returns to be filed on an annual
 2    basis, with the return for a given year being due by  January
 3    20 of the following 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  retailer  may  file  his
 9    return, in the case of any retailer who ceases to engage in a
10    kind  of  business  which  makes  him  responsible for filing
11    returns under this Act, such  retailer  shall  file  a  final
12    return  under  this Act with the Department not more than one
13    month after discontinuing such business.
14        Where  the  same  person  has  more  than  one   business
15    registered  with  the Department under separate registrations
16    under this Act, such person may not file each return that  is
17    due   as   a  single  return  covering  all  such  registered
18    businesses, but shall file separate  returns  for  each  such
19    registered business.
20        In  addition, with respect to motor vehicles, watercraft,
21    aircraft, and trailers that are  required  to  be  registered
22    with  an  agency  of  this State, every retailer selling this
23    kind of tangible  personal  property  shall  file,  with  the
24    Department,  upon a form to be prescribed and supplied by the
25    Department, a separate return for each such item of  tangible
26    personal  property  which the retailer sells, except that if,
27    in  the  same  transaction,  (i)  a  retailer  of   aircraft,
28    watercraft,  motor  vehicles  or trailers transfers more than
29    one aircraft, watercraft, motor vehicle or trailer to another
30    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
31    retailer for the purpose of resale  or  (ii)  a  retailer  of
32    aircraft,  watercraft,  motor vehicles, or trailers transfers
33    more than one aircraft, watercraft, motor vehicle, or trailer
34    to a purchaser for use  as  a  qualifying  rolling  stock  as
 
HB1599 Enrolled            -83-                LRB9207178TAcs
 1    provided  in  Section  2-5  of this Act, then that seller may
 2    report  the  transfer  of  all  aircraft,  watercraft,  motor
 3    vehicles or trailers involved  in  that  transaction  to  the
 4    Department  on the same uniform invoice-transaction reporting
 5    return form.  For  purposes  of  this  Section,  "watercraft"
 6    means a Class 2, Class 3, or Class 4 watercraft as defined in
 7    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
 8    personal watercraft, or any boat  equipped  with  an  inboard
 9    motor.
10        Any  retailer  who sells only motor vehicles, watercraft,
11    aircraft, or trailers that are required to be registered with
12    an agency of this State, so that  all  retailers'  occupation
13    tax liability is required to be reported, and is reported, on
14    such  transaction  reporting returns and who is not otherwise
15    required to file monthly or quarterly returns, need not  file
16    monthly or quarterly returns.  However, those retailers shall
17    be required to file returns on an annual basis.
18        The  transaction  reporting  return, in the case of motor
19    vehicles or trailers that are required to be registered  with
20    an  agency  of  this State, shall be the same document as the
21    Uniform Invoice referred to in Section 5-402 of The  Illinois
22    Vehicle  Code  and  must  show  the  name  and address of the
23    seller; the name and address of the purchaser; the amount  of
24    the  selling  price  including  the  amount  allowed  by  the
25    retailer  for  traded-in property, if any; the amount allowed
26    by the retailer for the traded-in tangible personal property,
27    if any, to the extent to which Section 1 of this  Act  allows
28    an exemption for the value of traded-in property; the balance
29    payable  after  deducting  such  trade-in  allowance from the
30    total selling price; the amount of tax due from the  retailer
31    with respect to such transaction; the amount of tax collected
32    from  the  purchaser  by the retailer on such transaction (or
33    satisfactory evidence that  such  tax  is  not  due  in  that
34    particular  instance, if that is claimed to be the fact); the
 
HB1599 Enrolled            -84-                LRB9207178TAcs
 1    place and date of the sale; a  sufficient  identification  of
 2    the  property  sold; such other information as is required in
 3    Section 5-402 of The Illinois Vehicle Code,  and  such  other
 4    information as the Department may reasonably require.
 5        The   transaction   reporting   return  in  the  case  of
 6    watercraft or aircraft 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,  and  such  other  information  as   the
21    Department may reasonably require.
22        Such  transaction  reporting  return  shall  be filed not
23    later than 20 days after the day of delivery of the item that
24    is being sold, but may be filed by the retailer at  any  time
25    sooner  than  that  if  he chooses to do so.  The transaction
26    reporting return and tax remittance  or  proof  of  exemption
27    from   the  Illinois  use  tax  may  be  transmitted  to  the
28    Department by way of the State agency with  which,  or  State
29    officer  with  whom  the  tangible  personal property must be
30    titled or registered (if titling or registration is required)
31    if the Department and such agency or State officer  determine
32    that   this   procedure   will  expedite  the  processing  of
33    applications for title or registration.
34        With each such transaction reporting return, the retailer
 
HB1599 Enrolled            -85-                LRB9207178TAcs
 1    shall remit the proper amount of tax  due  (or  shall  submit
 2    satisfactory evidence that the sale is not taxable if that is
 3    the  case),  to  the  Department or its agents, whereupon the
 4    Department shall issue, in the purchaser's name,  a  use  tax
 5    receipt  (or  a certificate of exemption if the Department is
 6    satisfied that the particular sale is tax exempt) which  such
 7    purchaser  may  submit  to  the  agency  with which, or State
 8    officer with whom, he must title  or  register  the  tangible
 9    personal   property   that   is   involved   (if  titling  or
10    registration is required)  in  support  of  such  purchaser's
11    application  for an Illinois certificate or other evidence of
12    title or registration to such tangible personal property.
13        No retailer's failure or refusal to remit tax under  this
14    Act  precludes  a  user,  who  has paid the proper tax to the
15    retailer, from obtaining his certificate of  title  or  other
16    evidence of title or registration (if titling or registration
17    is  required)  upon  satisfying the Department that such user
18    has paid the proper tax (if tax is due) to the retailer.  The
19    Department shall adopt appropriate rules  to  carry  out  the
20    mandate of this paragraph.
21        If  the  user who would otherwise pay tax to the retailer
22    wants the transaction reporting return filed and the  payment
23    of  the  tax  or  proof  of  exemption made to the Department
24    before the retailer is willing to take these actions and such
25    user has not paid the tax to  the  retailer,  such  user  may
26    certify  to  the  fact  of such delay by the retailer and may
27    (upon the Department being satisfied of  the  truth  of  such
28    certification)  transmit  the  information  required  by  the
29    transaction  reporting  return  and the remittance for tax or
30    proof of exemption directly to the Department and obtain  his
31    tax  receipt  or  exemption determination, in which event the
32    transaction reporting return and tax  remittance  (if  a  tax
33    payment  was required) shall be credited by the Department to
34    the  proper  retailer's  account  with  the  Department,  but
 
HB1599 Enrolled            -86-                LRB9207178TAcs
 1    without the 2.1% or  1.75%  discount  provided  for  in  this
 2    Section  being  allowed.  When the user pays the tax directly
 3    to the Department, he shall pay the tax in  the  same  amount
 4    and in the same form in which it would be remitted if the tax
 5    had been remitted to the Department by the retailer.
 6        Refunds  made  by  the seller during the preceding return
 7    period  to  purchasers,  on  account  of  tangible   personal
 8    property  returned  to  the  seller,  shall  be  allowed as a
 9    deduction under subdivision 5 of  his  monthly  or  quarterly
10    return,   as  the  case  may  be,  in  case  the  seller  had
11    theretofore included the  receipts  from  the  sale  of  such
12    tangible  personal  property in a return filed by him and had
13    paid the tax  imposed  by  this  Act  with  respect  to  such
14    receipts.
15        Where  the  seller  is a corporation, the return filed on
16    behalf of such corporation shall be signed by the  president,
17    vice-president,  secretary  or  treasurer  or by the properly
18    accredited agent of such corporation.
19        Where the seller is  a  limited  liability  company,  the
20    return filed on behalf of the limited liability company shall
21    be  signed by a manager, member, or properly accredited agent
22    of the limited liability company.
23        Except as provided in this Section, the  retailer  filing
24    the  return  under  this Section shall, at the time of filing
25    such return, pay to the Department the amount of tax  imposed
26    by  this Act less a discount of 2.1% prior to January 1, 1990
27    and 1.75% on and after January 1, 1990, or  $5  per  calendar
28    year, whichever is greater, which is allowed to reimburse the
29    retailer  for  the  expenses  incurred  in  keeping  records,
30    preparing and filing returns, remitting the tax and supplying
31    data  to  the  Department  on  request.   Any prepayment made
32    pursuant to Section 2d of this Act shall be included  in  the
33    amount  on which such 2.1% or 1.75% discount is computed.  In
34    the case of retailers  who  report  and  pay  the  tax  on  a
 
HB1599 Enrolled            -87-                LRB9207178TAcs
 1    transaction   by  transaction  basis,  as  provided  in  this
 2    Section, such discount shall be  taken  with  each  such  tax
 3    remittance  instead  of when such retailer files his periodic
 4    return.
 5        Before October 1, 2000, if the taxpayer's average monthly
 6    tax liability to the Department under this Act, the  Use  Tax
 7    Act,  the Service Occupation Tax Act, and the Service Use Tax
 8    Act, excluding any liability for  prepaid  sales  tax  to  be
 9    remitted  in  accordance  with  Section  2d  of this Act, was
10    $10,000 or more during  the  preceding  4  complete  calendar
11    quarters,  he  shall  file  a return with the Department each
12    month by the 20th day of the month next following  the  month
13    during  which  such  tax liability is incurred and shall make
14    payments to the Department on or before the 7th,  15th,  22nd
15    and  last  day  of  the  month during which such liability is
16    incurred. On and after October 1,  2000,  if  the  taxpayer's
17    average  monthly  tax  liability to the Department under this
18    Act, the Use Tax Act, the Service Occupation Tax Act, and the
19    Service Use Tax Act,  excluding  any  liability  for  prepaid
20    sales  tax  to  be  remitted in accordance with Section 2d of
21    this Act, was $20,000 or more during the preceding 4 complete
22    calendar quarters, he shall file a return with the Department
23    each month by the 20th day of the month  next  following  the
24    month  during  which such tax liability is incurred and shall
25    make payment to the Department on or before  the  7th,  15th,
26    22nd and last day of the month during which such liability is
27    incurred.    If  the month during which such tax liability is
28    incurred began prior to January 1, 1985, each  payment  shall
29    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
30    liability for the month or an amount set  by  the  Department
31    not  to  exceed  1/4  of the average monthly liability of the
32    taxpayer to the  Department  for  the  preceding  4  complete
33    calendar  quarters  (excluding the month of highest liability
34    and the month of lowest liability in such 4 quarter  period).
 
HB1599 Enrolled            -88-                LRB9207178TAcs
 1    If  the  month  during  which  such tax liability is incurred
 2    begins on or after January 1, 1985 and prior  to  January  1,
 3    1987,  each  payment  shall be in an amount equal to 22.5% of
 4    the taxpayer's actual liability for the month or 27.5% of the
 5    taxpayer's liability for  the  same  calendar  month  of  the
 6    preceding year.  If the month during which such tax liability
 7    is  incurred  begins on or after January 1, 1987 and prior to
 8    January 1, 1988, each payment shall be in an amount equal  to
 9    22.5%  of  the  taxpayer's  actual liability for the month or
10    26.25% of the taxpayer's  liability  for  the  same  calendar
11    month  of the preceding year.  If the month during which such
12    tax liability is incurred begins on or after January 1, 1988,
13    and prior to January 1, 1989, or begins on or  after  January
14    1, 1996, each payment shall be in an amount equal to 22.5% of
15    the  taxpayer's  actual liability for the month or 25% of the
16    taxpayer's liability for  the  same  calendar  month  of  the
17    preceding  year. If the month during which such tax liability
18    is incurred begins on or after January 1, 1989, and prior  to
19    January  1, 1996, each payment shall be in an amount equal to
20    22.5% of the taxpayer's actual liability for the month or 25%
21    of the taxpayer's liability for the same  calendar  month  of
22    the preceding year or 100% of the taxpayer's actual liability
23    for the quarter monthly reporting period.  The amount of such
24    quarter  monthly payments shall be credited against the final
25    tax liability  of  the  taxpayer's  return  for  that  month.
26    Before  October  1, 2000, once applicable, the requirement of
27    the making of quarter monthly payments to the  Department  by
28    taxpayers  having an average monthly tax liability of $10,000
29    or more as determined in  the  manner  provided  above  shall
30    continue  until  such taxpayer's average monthly liability to
31    the Department  during  the  preceding  4  complete  calendar
32    quarters  (excluding  the  month of highest liability and the
33    month of lowest liability) is less than $9,000, or until such
34    taxpayer's average monthly liability  to  the  Department  as
 
HB1599 Enrolled            -89-                LRB9207178TAcs
 1    computed  for  each  calendar  quarter  of  the  4  preceding
 2    complete  calendar  quarter  period  is  less  than  $10,000.
 3    However,  if  a  taxpayer  can  show  the  Department  that a
 4    substantial change in the taxpayer's  business  has  occurred
 5    which  causes  the  taxpayer  to  anticipate that his average
 6    monthly tax liability for the reasonably  foreseeable  future
 7    will fall below the $10,000 threshold stated above, then such
 8    taxpayer  may  petition  the  Department for a change in such
 9    taxpayer's reporting status.  On and after October  1,  2000,
10    once  applicable,  the  requirement  of the making of quarter
11    monthly payments to the Department  by  taxpayers  having  an
12    average   monthly   tax  liability  of  $20,000  or  more  as
13    determined in the manner provided above shall continue  until
14    such  taxpayer's  average monthly liability to the Department
15    during the preceding 4 complete calendar quarters  (excluding
16    the  month  of  highest  liability  and  the  month of lowest
17    liability) is less than  $19,000  or  until  such  taxpayer's
18    average  monthly  liability to the Department as computed for
19    each calendar quarter of the 4  preceding  complete  calendar
20    quarter  period is less than $20,000.  However, if a taxpayer
21    can show the Department that  a  substantial  change  in  the
22    taxpayer's business has occurred which causes the taxpayer to
23    anticipate  that  his  average  monthly tax liability for the
24    reasonably foreseeable future will  fall  below  the  $20,000
25    threshold  stated  above, then such taxpayer may petition the
26    Department for a change in such taxpayer's reporting  status.
27    The  Department shall change such taxpayer's reporting status
28    unless it finds that such change is seasonal  in  nature  and
29    not  likely  to  be  long  term.  If any such quarter monthly
30    payment is not paid at the time or in the amount required  by
31    this Section, then the taxpayer shall be liable for penalties
32    and interest on the difference between the minimum amount due
33    as  a  payment and the amount of such quarter monthly payment
34    actually and timely paid, except insofar as the taxpayer  has
 
HB1599 Enrolled            -90-                LRB9207178TAcs
 1    previously  made payments for that month to the Department in
 2    excess of the minimum payments previously due as provided  in
 3    this  Section. The Department shall make reasonable rules and
 4    regulations to govern the quarter monthly payment amount  and
 5    quarter monthly payment dates for taxpayers who file on other
 6    than a calendar monthly basis.
 7        Without  regard to whether a taxpayer is required to make
 8    quarter monthly payments as specified above, any taxpayer who
 9    is required by Section 2d of this Act to  collect  and  remit
10    prepaid  taxes  and has collected prepaid taxes which average
11    in excess  of  $25,000  per  month  during  the  preceding  2
12    complete  calendar  quarters,  shall  file  a return with the
13    Department as required by Section 2f and shall make  payments
14    to  the  Department on or before the 7th, 15th, 22nd and last
15    day of the month during which such liability is incurred.  If
16    the month during which such tax liability is  incurred  began
17    prior  to  the effective date of this amendatory Act of 1985,
18    each payment shall be in an amount not less than 22.5% of the
19    taxpayer's actual liability under Section 2d.  If  the  month
20    during  which  such  tax  liability  is incurred begins on or
21    after January 1, 1986, each payment shall  be  in  an  amount
22    equal  to  22.5%  of  the taxpayer's actual liability for the
23    month or 27.5% of  the  taxpayer's  liability  for  the  same
24    calendar  month of the preceding calendar year.  If the month
25    during which such tax liability  is  incurred  begins  on  or
26    after  January  1,  1987,  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.   The  amount  of  such
30    quarter  monthly payments shall be credited against the final
31    tax liability of the taxpayer's return for that  month  filed
32    under  this  Section or Section 2f, as the case may be.  Once
33    applicable, the requirement of the making of quarter  monthly
34    payments  to  the Department pursuant to this paragraph shall
 
HB1599 Enrolled            -91-                LRB9207178TAcs
 1    continue until such taxpayer's average  monthly  prepaid  tax
 2    collections during the preceding 2 complete calendar quarters
 3    is  $25,000  or less.  If any such quarter monthly payment is
 4    not paid at the time or in the amount required, the  taxpayer
 5    shall   be   liable   for  penalties  and  interest  on  such
 6    difference, except insofar as  the  taxpayer  has  previously
 7    made  payments  for  that  month  in  excess  of  the minimum
 8    payments previously due.
 9        If any payment provided for in this Section  exceeds  the
10    taxpayer's  liabilities  under this Act, the Use Tax Act, the
11    Service Occupation Tax Act and the Service Use  Tax  Act,  as
12    shown on an original monthly return, the Department shall, if
13    requested  by  the  taxpayer,  issue to the taxpayer a credit
14    memorandum no later than 30 days after the date  of  payment.
15    The  credit  evidenced  by  such  credit  memorandum  may  be
16    assigned  by  the  taxpayer  to a similar taxpayer under this
17    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
18    Service  Use Tax Act, in accordance with reasonable rules and
19    regulations to be prescribed by the Department.  If  no  such
20    request  is made, the taxpayer may credit such excess payment
21    against tax liability subsequently  to  be  remitted  to  the
22    Department  under  this  Act,  the  Use  Tax Act, the Service
23    Occupation Tax Act or the Service Use Tax Act, in  accordance
24    with  reasonable  rules  and  regulations  prescribed  by the
25    Department.  If the Department subsequently  determined  that
26    all  or  any part of the credit taken was not actually due to
27    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
28    shall be reduced by 2.1% or 1.75% of the  difference  between
29    the  credit  taken  and  that actually due, and that taxpayer
30    shall  be  liable  for  penalties  and   interest   on   such
31    difference.
32        If a retailer of motor fuel is entitled to a credit under
33    Section 2d of this Act which exceeds the taxpayer's liability
34    to  the  Department  under  this  Act for the month which the
 
HB1599 Enrolled            -92-                LRB9207178TAcs
 1    taxpayer is filing a return, the Department shall  issue  the
 2    taxpayer a credit memorandum for the excess.
 3        Beginning  January  1,  1990,  each  month the Department
 4    shall pay into the Local Government Tax Fund, a special  fund
 5    in  the  State  treasury  which  is  hereby  created, the net
 6    revenue realized for the preceding month from the 1%  tax  on
 7    sales  of  food for human consumption which is to be consumed
 8    off the premises where  it  is  sold  (other  than  alcoholic
 9    beverages,  soft  drinks and food which has been prepared for
10    immediate consumption) and prescription  and  nonprescription
11    medicines,  drugs,  medical  appliances  and  insulin,  urine
12    testing materials, syringes and needles used by diabetics.
13        Beginning  January  1,  1990,  each  month the Department
14    shall pay into the County and Mass Transit District  Fund,  a
15    special  fund  in the State treasury which is hereby created,
16    4% of the net revenue realized for the preceding  month  from
17    the 6.25% general rate.
18        Beginning August 1, 2000, each month the Department shall
19    pay into the County and Mass Transit District Fund 20% of the
20    net  revenue  realized for the preceding month from the 1.25%
21    rate on the selling price of motor fuel and gasohol.
22        Beginning January 1,  1990,  each  month  the  Department
23    shall  pay  into the Local Government Tax Fund 16% 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        Beginning August 1, 2000, each month the Department shall
28    pay into the Local Government Tax Fund 80% of the net revenue
29    realized for the preceding month from the 1.25% rate  on  the
30    selling price of motor fuel and gasohol.
31        Of the remainder of the moneys received by the Department
32    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
33    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
34    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
 
HB1599 Enrolled            -93-                LRB9207178TAcs
 1    into the Build Illinois Fund; provided, however, that  if  in
 2    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 3    as  the case may be, of the moneys received by the Department
 4    and required to be paid into the Build Illinois Fund pursuant
 5    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
 6    Service  Use Tax Act, and Section 9 of the Service Occupation
 7    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
 8    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
 9    moneys being hereinafter called the "Tax Act Amount", and (2)
10    the amount transferred to the Build Illinois  Fund  from  the
11    State  and Local Sales Tax Reform Fund shall be less than the
12    Annual Specified Amount (as hereinafter defined),  an  amount
13    equal  to  the  difference shall be immediately paid into the
14    Build  Illinois  Fund  from  other  moneys  received  by  the
15    Department pursuant to the Tax Acts;  the  "Annual  Specified
16    Amount"  means  the  amounts specified below for fiscal years
17    1986 through 1993:
18             Fiscal Year              Annual Specified Amount
19                 1986                       $54,800,000
20                 1987                       $76,650,000
21                 1988                       $80,480,000
22                 1989                       $88,510,000
23                 1990                       $115,330,000
24                 1991                       $145,470,000
25                 1992                       $182,730,000
26                 1993                      $206,520,000;
27    and means the Certified Annual Debt Service  Requirement  (as
28    defined  in Section 13 of the Build Illinois Bond Act) or the
29    Tax Act Amount, whichever is greater, for  fiscal  year  1994
30    and  each  fiscal year thereafter; and further provided, that
31    if on the last business day of any month the sum of  (1)  the
32    Tax  Act  Amount  required  to  be  deposited  into the Build
33    Illinois Bond Account in the Build Illinois Fund during  such
34    month  and  (2)  the amount transferred to the Build Illinois
 
HB1599 Enrolled            -94-                LRB9207178TAcs
 1    Fund from the State and Local Sales  Tax  Reform  Fund  shall
 2    have  been  less than 1/12 of the Annual Specified Amount, an
 3    amount equal to the difference shall be immediately paid into
 4    the Build Illinois Fund from other  moneys  received  by  the
 5    Department  pursuant  to the Tax Acts; and, further provided,
 6    that in no  event  shall  the  payments  required  under  the
 7    preceding proviso result in aggregate payments into the Build
 8    Illinois Fund pursuant to this clause (b) for any fiscal year
 9    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
10    the Annual  Specified  Amount  for  such  fiscal  year.   The
11    amounts payable into the Build Illinois Fund under clause (b)
12    of the first sentence in this paragraph shall be payable only
13    until such time as the aggregate amount on deposit under each
14    trust   indenture   securing  Bonds  issued  and  outstanding
15    pursuant to the Build Illinois Bond Act is sufficient, taking
16    into account any future investment income, to fully  provide,
17    in  accordance  with such indenture, for the defeasance of or
18    the payment  of  the  principal  of,  premium,  if  any,  and
19    interest  on  the  Bonds secured by such indenture and on any
20    Bonds expected to be issued thereafter and all fees and costs
21    payable  with  respect  thereto,  all  as  certified  by  the
22    Director of the  Bureau  of  the  Budget.   If  on  the  last
23    business  day  of  any  month  in which Bonds are outstanding
24    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
25    moneys  deposited  in  the Build Illinois Bond Account in the
26    Build Illinois Fund in such month  shall  be  less  than  the
27    amount  required  to  be  transferred  in such month from the
28    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
29    Retirement  and  Interest  Fund pursuant to Section 13 of the
30    Build Illinois Bond Act, an amount equal to  such  deficiency
31    shall  be  immediately paid from other moneys received by the
32    Department pursuant to the Tax Acts  to  the  Build  Illinois
33    Fund;  provided,  however, that any amounts paid to the Build
34    Illinois Fund in any fiscal year pursuant  to  this  sentence
 
HB1599 Enrolled            -95-                LRB9207178TAcs
 1    shall be deemed to constitute payments pursuant to clause (b)
 2    of  the first sentence of this paragraph and shall reduce the
 3    amount otherwise payable for such  fiscal  year  pursuant  to
 4    that  clause  (b).   The  moneys  received  by the Department
 5    pursuant to this Act and required to be  deposited  into  the
 6    Build  Illinois  Fund  are  subject  to the pledge, claim and
 7    charge set forth in Section 12 of  the  Build  Illinois  Bond
 8    Act.
 9        Subject  to  payment  of  amounts into the Build Illinois
10    Fund as  provided  in  the  preceding  paragraph  or  in  any
11    amendment  thereto hereafter enacted, the following specified
12    monthly  installment  of  the   amount   requested   in   the
13    certificate  of  the  Chairman  of  the Metropolitan Pier and
14    Exposition Authority provided  under  Section  8.25f  of  the
15    State  Finance  Act,  but not in excess of sums designated as
16    "Total Deposit", shall be deposited  in  the  aggregate  from
17    collections  under Section 9 of the Use Tax Act, Section 9 of
18    the Service Use Tax Act, Section 9 of the Service  Occupation
19    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
20    into the  McCormick  Place  Expansion  Project  Fund  in  the
21    specified fiscal years.
22             Fiscal Year                   Total Deposit
23                 1993                            $0
24                 1994                        53,000,000
25                 1995                        58,000,000
26                 1996                        61,000,000
27                 1997                        64,000,000
28                 1998                        68,000,000
29                 1999                        71,000,000
30                 2000                        75,000,000
31                 2001                        80,000,000
32                 2002                        84,000,000
33                 2003                        89,000,000
34                 2004                        93,000,000
 
HB1599 Enrolled            -96-                LRB9207178TAcs
 1                 2005                        97,000,000
 2                 2006                       102,000,000
 3                 2007                       108,000,000
 4                 2008                       115,000,000
 5                 2009                       120,000,000
 6                 2010                       126,000,000
 7                 2011                       132,000,000
 8                 2012                       138,000,000
 9                 2013 and                   145,000,000
10        each fiscal year
11        thereafter that bonds
12        are outstanding under
13        Section 13.2 of the
14        Metropolitan Pier and
15        Exposition Authority
16        Act, but not after fiscal year 2029.
17        Beginning  July 20, 1993 and in each month of each fiscal
18    year thereafter, one-eighth of the amount  requested  in  the
19    certificate  of  the  Chairman  of  the Metropolitan Pier and
20    Exposition Authority for that fiscal year,  less  the  amount
21    deposited  into the McCormick Place Expansion Project Fund by
22    the State Treasurer in the respective month under  subsection
23    (g)  of  Section  13  of the Metropolitan Pier and Exposition
24    Authority Act, plus cumulative deficiencies in  the  deposits
25    required  under  this  Section for previous months and years,
26    shall be deposited into the McCormick Place Expansion Project
27    Fund, until the full amount requested for  the  fiscal  year,
28    but  not  in  excess  of the amount specified above as "Total
29    Deposit", has been deposited.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund  and the McCormick Place Expansion Project Fund pursuant
32    to the preceding  paragraphs  or  in  any  amendment  thereto
33    hereafter  enacted,  each month the Department shall pay into
34    the Local  Government  Distributive  Fund  0.4%  of  the  net
 
HB1599 Enrolled            -97-                LRB9207178TAcs
 1    revenue  realized for the preceding month from the 5% general
 2    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
 3    preceding  month from the 6.25% general rate, as the case may
 4    be, on the selling price of tangible personal property  which
 5    amount  shall,  subject  to  appropriation, be distributed as
 6    provided in Section 2 of the State Revenue Sharing  Act.   No
 7    payments or distributions pursuant to this paragraph shall be
 8    made  if  the  tax  imposed  by  this  Act on photoprocessing
 9    products is declared unconstitutional,  or  if  the  proceeds
10    from  such  tax  are  unavailable for distribution because of
11    litigation.
12        Subject to payment of amounts  into  the  Build  Illinois
13    Fund,  the  McCormick  Place  Expansion Project Fund, and the
14    Local Government Distributive Fund pursuant to the  preceding
15    paragraphs  or  in  any amendments thereto hereafter enacted,
16    beginning July 1, 1993, the Department shall each  month  pay
17    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
18    revenue realized for  the  preceding  month  from  the  6.25%
19    general  rate  on  the  selling  price  of  tangible personal
20    property.
21        Subject to payment of amounts  into  the  Build  Illinois
22    Fund,  the  McCormick  Place  Expansion Project Fund, and the
23    Local Government Distributive Fund pursuant to the  preceding
24    paragraphs  or  in  any amendments thereto hereafter enacted,
25    beginning with the receipt of the first report of taxes  paid
26    by  an eligible business and continuing for a 25-year period,
27    the  Department  shall  each  month  pay  into   the   Energy
28    Infrastructure  Fund 80% of the net revenue realized from the
29    6.25% general rate on the  selling  price  of  Illinois-mined
30    coal  that was sold to an eligible business.  For purposes of
31    this paragraph, the term  "eligible  business"  means  a  new
32    electric  generating  facility  certified pursuant to Section
33    605-332 of the Department of Commerce and  Community  Affairs
34    Law of the Civil Administrative Code of Illinois.
 
HB1599 Enrolled            -98-                LRB9207178TAcs
 1        Of the remainder of the moneys received by the Department
 2    pursuant  to  this  Act,  75%  thereof shall be paid into the
 3    State Treasury and 25% shall be reserved in a special account
 4    and used only for the transfer to the Common School  Fund  as
 5    part of the monthly transfer from the General Revenue Fund in
 6    accordance with Section 8a of the State Finance Act.
 7        The  Department  may,  upon  separate written notice to a
 8    taxpayer, require the taxpayer to prepare and file  with  the
 9    Department  on a form prescribed by the Department within not
10    less than 60 days after  receipt  of  the  notice  an  annual
11    information  return for the tax year specified in the notice.
12    Such  annual  return  to  the  Department  shall  include   a
13    statement  of  gross receipts as shown by the retailer's last
14    Federal income tax return.  If  the  total  receipts  of  the
15    business  as reported in the Federal income tax return do not
16    agree with the gross receipts reported to the  Department  of
17    Revenue for the same period, the retailer shall attach to his
18    annual  return  a  schedule showing a reconciliation of the 2
19    amounts and the reasons for the difference.   The  retailer's
20    annual  return to the Department shall also disclose the cost
21    of goods sold by the retailer during the year covered by such
22    return, opening and closing inventories  of  such  goods  for
23    such year, costs of goods used from stock or taken from stock
24    and  given  away  by  the  retailer during such year, payroll
25    information of the retailer's business during such  year  and
26    any  additional  reasonable  information which the Department
27    deems would be helpful in determining  the  accuracy  of  the
28    monthly,  quarterly  or annual returns filed by such retailer
29    as provided for in this Section.
30        If the annual information return required by this Section
31    is not filed when and as  required,  the  taxpayer  shall  be
32    liable as follows:
33             (i)  Until  January  1,  1994, the taxpayer shall be
34        liable for a penalty equal to 1/6 of 1% of  the  tax  due
 
HB1599 Enrolled            -99-                LRB9207178TAcs
 1        from such taxpayer under this Act during the period to be
 2        covered  by  the annual return for each month or fraction
 3        of a month until such return is filed  as  required,  the
 4        penalty  to  be assessed and collected in the same manner
 5        as any other penalty provided for in this Act.
 6             (ii)  On and after January  1,  1994,  the  taxpayer
 7        shall be liable for a penalty as described in Section 3-4
 8        of the Uniform Penalty and Interest Act.
 9        The chief executive officer, proprietor, owner or highest
10    ranking  manager  shall sign the annual return to certify the
11    accuracy of the information contained therein.    Any  person
12    who  willfully  signs  the  annual return containing false or
13    inaccurate  information  shall  be  guilty  of  perjury   and
14    punished  accordingly.   The annual return form prescribed by
15    the Department  shall  include  a  warning  that  the  person
16    signing the return may be liable for perjury.
17        The  provisions  of this Section concerning the filing of
18    an annual information return do not apply to a  retailer  who
19    is  not required to file an income tax return with the United
20    States Government.
21        As soon as possible after the first day  of  each  month,
22    upon   certification   of  the  Department  of  Revenue,  the
23    Comptroller shall order transferred and the  Treasurer  shall
24    transfer  from the General Revenue Fund to the Motor Fuel Tax
25    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
26    realized  under  this  Act  for  the  second preceding month.
27    Beginning April 1, 2000, this transfer is no longer  required
28    and shall not be made.
29        Net  revenue  realized  for  a month shall be the revenue
30    collected by the State pursuant to this Act, less the  amount
31    paid  out  during  that  month  as  refunds  to taxpayers for
32    overpayment of liability.
33        For greater simplicity of administration,  manufacturers,
34    importers  and  wholesalers whose products are sold at retail
 
HB1599 Enrolled            -100-               LRB9207178TAcs
 1    in Illinois by numerous retailers, and who wish to do so, may
 2    assume the responsibility for accounting and  paying  to  the
 3    Department  all  tax  accruing under this Act with respect to
 4    such sales, if the retailers who are  affected  do  not  make
 5    written objection to the Department to this arrangement.
 6        Any  person  who  promotes,  organizes,  provides  retail
 7    selling  space  for concessionaires or other types of sellers
 8    at the Illinois State Fair, DuQuoin State Fair, county fairs,
 9    local fairs, art shows, flea markets and similar  exhibitions
10    or  events,  including  any  transient merchant as defined by
11    Section 2 of the Transient Merchant Act of 1987, is  required
12    to  file  a  report with the Department providing the name of
13    the merchant's business, the name of the  person  or  persons
14    engaged  in  merchant's  business,  the permanent address and
15    Illinois Retailers Occupation Tax Registration Number of  the
16    merchant,  the  dates  and  location  of  the event and other
17    reasonable information that the Department may require.   The
18    report must be filed not later than the 20th day of the month
19    next  following  the month during which the event with retail
20    sales was held.  Any  person  who  fails  to  file  a  report
21    required  by  this  Section commits a business offense and is
22    subject to a fine not to exceed $250.
23        Any person engaged in the business  of  selling  tangible
24    personal property at retail as a concessionaire or other type
25    of  seller  at  the  Illinois  State  Fair, county fairs, art
26    shows, flea markets and similar exhibitions or events, or any
27    transient merchants, as defined by Section 2 of the Transient
28    Merchant Act of 1987, may be required to make a daily  report
29    of  the  amount of such sales to the Department and to make a
30    daily payment of the full amount of tax due.  The  Department
31    shall  impose  this requirement when it finds that there is a
32    significant risk of loss of revenue to the State at  such  an
33    exhibition  or  event.   Such  a  finding  shall  be based on
34    evidence that a  substantial  number  of  concessionaires  or
 
HB1599 Enrolled            -101-               LRB9207178TAcs
 1    other  sellers  who  are  not  residents  of Illinois will be
 2    engaging  in  the  business  of  selling  tangible   personal
 3    property  at  retail  at  the  exhibition  or event, or other
 4    evidence of a significant risk of  loss  of  revenue  to  the
 5    State.  The Department shall notify concessionaires and other
 6    sellers  affected  by the imposition of this requirement.  In
 7    the  absence  of  notification   by   the   Department,   the
 8    concessionaires and other sellers shall file their returns as
 9    otherwise required in this Section.
10    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
11    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
12    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
13    eff. 1-1-01; revised 1-15-01.)

14        Section  940.   The  Property  Tax  Code  is  amended  by
15    changing Section 18-165 as follows:

16        (35 ILCS 200/18-165)
17        Sec. 18-165. Abatement of taxes.
18        (a)  Any  taxing  district,  upon  a majority vote of its
19    governing authority, may,  after  the  determination  of  the
20    assessed  valuation  of its property, order the clerk of that
21    county to abate any portion of its  taxes  on  the  following
22    types of property:
23             (1)  Commercial and industrial.
24                  (A)  The   property   of   any   commercial  or
25             industrial firm, including but not  limited  to  the
26             property   of   (i)   any  firm  that  is  used  for
27             collecting,  separating,  storing,   or   processing
28             recyclable  materials,  locating  within  the taxing
29             district during the immediately preceding year  from
30             another state, territory, or country, or having been
31             newly   created   within   this   State  during  the
32             immediately preceding year, or expanding an existing
 
HB1599 Enrolled            -102-               LRB9207178TAcs
 1             facility, or (ii) any firm  that  is  used  for  the
 2             generation  and transmission of electricity locating
 3             within the taxing district  during  the  immediately
 4             preceding  year or expanding its presence within the
 5             taxing district  during  the  immediately  preceding
 6             year  by  construction  of a new electric generating
 7             facility that uses natural gas as its fuel,  or  any
 8             firm  that  is  used  for production operations at a
 9             new, expanded, or  reopened  coal  mine  within  the
10             taxing  district,  that has been certified as a High
11             Impact  Business  by  the  Illinois  Department   of
12             Commerce and Community Affairs.  The property of any
13             firm  used  for  the  generation and transmission of
14             electricity shall include all property of  the  firm
15             used  for  transmission  facilities  as  defined  in
16             Section  5.5  of  the  Illinois Enterprise Zone Act.
17             The abatement shall not exceed a period of 10  years
18             and  the  aggregate  amount  of abated taxes for all
19             taxing   districts   combined   shall   not   exceed
20             $4,000,000.
21                  (A-5)  Any property in the taxing district of a
22             new electric  generating  facility,  as  defined  in
23             Section  605-332  of  the Department of Commerce and
24             Community Affairs Law of  the  Civil  Administrative
25             Code  of  Illinois. The abatement shall not exceed a
26             period of 10 years. The abatement shall  be  subject
27             to the following limitations:
28                       (i)  if  the  equalized assessed valuation
29                  of the  new  electric  generating  facility  is
30                  equal  to  or greater than $25,000,000 but less
31                  than $50,000,000, then the  abatement  may  not
32                  exceed   (i)   over  the  entire  term  of  the
33                  abatement,  5%   of   the   taxing   district's
34                  aggregate   taxes   from   the   new   electric
 
HB1599 Enrolled            -103-               LRB9207178TAcs
 1                  generating facility and (ii) in any one year of
 2                  abatement,  20%  of the taxing district's taxes
 3                  from the new electric generating facility;
 4                       (ii)  if the equalized assessed  valuation
 5                  of  the  new  electric  generating  facility is
 6                  equal to or greater than $50,000,000  but  less
 7                  than  $75,000,000,  then  the abatement may not
 8                  exceed  (i)  over  the  entire  term   of   the
 9                  abatement,   10%   of   the  taxing  district's
10                  aggregate   taxes   from   the   new   electric
11                  generating facility and (ii) in any one year of
12                  abatement, 35% of the taxing  district's  taxes
13                  from the new electric generating facility;
14                       (iii)  if the equalized assessed valuation
15                  of  the  new  electric  generating  facility is
16                  equal to or greater than $75,000,000  but  less
17                  than  $100,000,000,  then the abatement may not
18                  exceed  (i)  over  the  entire  term   of   the
19                  abatement,   20%   of   the  taxing  district's
20                  aggregate   taxes   from   the   new   electric
21                  generating facility and (ii) in any one year of
22                  abatement, 50% of the taxing  district's  taxes
23                  from the new electric generating facility;
24                       (iv)  if  the equalized assessed valuation
25                  of the  new  electric  generating  facility  is
26                  equal  to or greater than $100,000,000 but less
27                  than $125,000,000, then the abatement  may  not
28                  exceed   (i)   over  the  entire  term  of  the
29                  abatement,  30%  of   the   taxing   district's
30                  aggregate   taxes   from   the   new   electric
31                  generating facility and (ii) in any one year of
32                  abatement,  60%  of the taxing district's taxes
33                  from the new electric generating facility;
34                       (v)  if the equalized  assessed  valuation
 
HB1599 Enrolled            -104-               LRB9207178TAcs
 1                  of  the  new  electric  generating  facility is
 2                  equal to or greater than $125,000,000 but  less
 3                  than  $150,000,000,  then the abatement may not
 4                  exceed  (i)  over  the  entire  term   of   the
 5                  abatement,   40%   of   the  taxing  district's
 6                  aggregate   taxes   from   the   new   electric
 7                  generating facility and (ii) in any one year of
 8                  abatement, 60% of the taxing  district's  taxes
 9                  from the new electric generating facility;
10                       (vi)  if  the equalized assessed valuation
11                  of the  new  electric  generating  facility  is
12                  equal to or greater than $150,000,000, then the
13                  abatement  may  not  exceed (i) over the entire
14                  term  of  the  abatement,  50%  of  the  taxing
15                  district's  aggregate  taxes   from   the   new
16                  electric  generating  facility  and (ii) in any
17                  one  year  of  abatement,  60%  of  the  taxing
18                  district's  taxes   from   the   new   electric
19                  generating facility.
20                  The abatement is not effective unless the owner
21             of  the  new  electric generating facility agrees to
22             repay to the taxing district all amounts  previously
23             abated,  together with interest computed at the rate
24             and in the manner provided for delinquent taxes,  in
25             the  event  that  the  owner  of  the  new  electric
26             generating   facility   closes   the   new  electric
27             generating facility before  the  expiration  of  the
28             entire term of the abatement.
29                  The  authorization of taxing districts to abate
30             taxes under this subdivision (a)(1)(A-5) expires  on
31             January 1, 2010.; or
32                  (B)  The   property   of   any   commercial  or
33             industrial development of at least 500 acres  having
34             been   created  within  the  taxing  district.   The
 
HB1599 Enrolled            -105-               LRB9207178TAcs
 1             abatement shall not exceed a period of 20 years  and
 2             the  aggregate amount of abated taxes for all taxing
 3             districts combined shall not exceed $12,000,000.
 4                  (C)  The  property   of   any   commercial   or
 5             industrial  firm  currently  located  in  the taxing
 6             district that expands a facility or  its  number  of
 7             employees.  The  abatement shall not exceed a period
 8             of 10 years and the aggregate amount of abated taxes
 9             for all taxing districts combined shall  not  exceed
10             $4,000,000.  The  abatement period may be renewed at
11             the option of the taxing districts.
12             (2)  Horse  racing.   Any  property  in  the  taxing
13        district which is used for the racing of horses and  upon
14        which   capital  improvements  consisting  of  expansion,
15        improvement or replacement of  existing  facilities  have
16        been  made  since  July 1, 1987.  The combined abatements
17        for such property from all taxing districts in any county
18        shall not exceed $5,000,000 annually and shall not exceed
19        a period of 10 years.
20             (3)  Auto racing.  Any property designed exclusively
21        for the racing of motor vehicles.  Such  abatement  shall
22        not exceed a period of 10 years.
23             (4)  Academic  or  research institute.  The property
24        of any academic  or  research  institute  in  the  taxing
25        district   that  (i)  is  an  exempt  organization  under
26        paragraph (3) of Section 501(c) of the  Internal  Revenue
27        Code,  (ii)  operates  for  the  benefit of the public by
28        actually and exclusively performing  scientific  research
29        and  making  the results of the research available to the
30        interested public  on  a  non-discriminatory  basis,  and
31        (iii)  employs  more  than  100  employees.  An abatement
32        granted under this paragraph shall be  for  at  least  15
33        years  and  the  aggregate amount of abated taxes for all
34        taxing districts combined shall not exceed $5,000,000.
 
HB1599 Enrolled            -106-               LRB9207178TAcs
 1             (5)  Housing for older persons.  Any property in the
 2        taxing district that is devoted exclusively to affordable
 3        housing for  older  households.   For  purposes  of  this
 4        paragraph,  "older households" means those households (i)
 5        living in housing provided under  any  State  or  federal
 6        program that the Department of Human Rights determines is
 7        specifically  designed  and  operated  to  assist elderly
 8        persons and is solely occupied by persons 55 years of age
 9        or older and (ii) whose annual income does not exceed 80%
10        of the area gross  median  income,  adjusted  for  family
11        size,   as  such  gross  income  and  median  income  are
12        determined  from  time  to  time  by  the  United  States
13        Department  of  Housing  and  Urban   Development.    The
14        abatement  shall not exceed a period of 15 years, and the
15        aggregate amount of abated taxes for all taxing districts
16        shall not exceed $3,000,000.
17             (6)  Historical society.  For assessment years  1998
18        through  2000,  the  property  of  an  historical society
19        qualifying  as  an  exempt  organization  under   Section
20        501(c)(3) of the federal Internal Revenue Code.
21             (7)  Recreational  facilities.   Any property in the
22        taxing district (i) that is used for a municipal airport,
23        (ii) that is subject  to  a  leasehold  assessment  under
24        Section 9-195 of this Code and (iii) which is sublet from
25        a  park  district  that  is  leasing  the property from a
26        municipality,  but  only  if   the   property   is   used
27        exclusively  for  recreational  facilities or for parking
28        lots  used  exclusively  for   those   facilities.    The
29        abatement shall not exceed a period of 10 years.
30        (b)  Upon a majority vote of its governing authority, any
31    municipality  may,  after  the  determination of the assessed
32    valuation of its property, order the county  clerk  to  abate
33    any  portion  of  its  taxes  on any property that is located
34    within the corporate limits of the municipality in accordance
 
HB1599 Enrolled            -107-               LRB9207178TAcs
 1    with Section 8-3-18 of the Illinois Municipal Code.
 2    (Source: P.A.  90-46,  eff.  7-3-97;  90-415,  eff.  8-15-97;
 3    90-568,  eff.  1-1-99;  90-655,  eff.  7-30-98;  91-644, eff.
 4    8-20-99; 91-885, eff. 7-6-00.)

 5        Section 945.  The Public  Utilities  Act  is  amended  by
 6    changing Sections 9-222, 9-222.1A, and 16-126 as follows:

 7        (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
 8        Sec.  9-222.   Whenever  a  tax  is imposed upon a public
 9    utility engaged in the business of  distributing,  supplying,
10    furnishing, or selling gas for use or consumption pursuant to
11    Section  2  of  the Gas Revenue Tax Act, or whenever a tax is
12    required to be collected by a delivering supplier pursuant to
13    Section 2-7 of the Electricity Excise Tax Act, or whenever  a
14    tax  is  imposed  upon  a  public utility pursuant to Section
15    2-202 of this Act, such utility  may  charge  its  customers,
16    other  than  customers  who  are high impact businesses under
17    Section 5.5 of the Illinois Enterprise Zone Act, or certified
18    business enterprises under Section 9-222.1 of  this  Act,  to
19    the  extent  of such exemption and during the period in which
20    such  exemption  is  in  effect,  in  addition  to  any  rate
21    authorized by this Act, an additional  charge  equal  to  the
22    total  amount  of  such  taxes. The exemption of this Section
23    relating to high impact businesses shall be  subject  to  the
24    provisions  of subsections (a), and (b), and (b-5) of Section
25    5.5 of the Illinois Enterprise Zone  Act.   This  requirement
26    shall not apply to taxes on invested capital imposed pursuant
27    to  the  Messages  Tax  Act,  the Gas Revenue Tax Act and the
28    Public Utilities Revenue Act. Such utility  shall  file  with
29    the  Commission  a  supplemental schedule which shall specify
30    such additional charge and which shall become effective  upon
31    filing  without  further notice. Such additional charge shall
32    be shown separately on the utility  bill  to  each  customer.
 
HB1599 Enrolled            -108-               LRB9207178TAcs
 1    The Commission shall have the power to investigate whether or
 2    not  such  supplemental  schedule  correctly  specifies  such
 3    additional  charge,  but  shall have no power to suspend such
 4    supplemental schedule.  If  the  Commission  finds,  after  a
 5    hearing,  that  such supplemental schedule does not correctly
 6    specify such additional charge, it shall by order  require  a
 7    refund  to  the  appropriate customers of the excess, if any,
 8    with interest, in such manner  as  it  shall  deem  just  and
 9    reasonable,  and  in  and  by  such  order  shall require the
10    utility   to   file   an   amended   supplemental    schedule
11    corresponding  to  the  finding  and order of the Commission.
12    Except with respect to taxes  imposed  on  invested  capital,
13    such tax liabilities shall be recovered from customers solely
14    by  means  of  the  additional  charges  authorized  by  this
15    Section.
16    (Source: P.A. 91-914, eff. 7-7-00.)

17        (220 ILCS 5/9-222.1A)
18        Sec. 9-222.1A. High impact business.  Beginning on August
19    1,  1998  and  thereafter,  a  business  enterprise  that  is
20    certified  as  a  High  Impact  Business by the Department of
21    Commerce and  Community  Affairs  is  exempt   from  the  tax
22    imposed  by Section 2-4 of the Electricity Excise Tax Law, if
23    the High Impact Business is registered  to  self-assess  that
24    tax, and is exempt from any additional  charges  added to the
25    business enterprise's  utility  bills  as  a pass-on of State
26    utility  taxes under Section 9-222 of this Act, to the extent
27    the tax or charges are exempted by the  percentage  specified
28    by  the  Department  of   Commerce  and Community Affairs for
29    State utility taxes, provided the business  enterprise  meets
30    the following criteria:
31             (1) (A)  it  intends  either  (i)  to make a minimum
32             eligible investment  of  $12,000,000  that  will  be
33             placed  in service in qualified property in Illinois
 
HB1599 Enrolled            -109-               LRB9207178TAcs
 1             and is intended to create at  least  500   full-time
 2             equivalent  jobs  at  a    designated    location in
 3             Illinois;  or  (ii)  to  make  a  minimum   eligible
 4             investment  of  $30,000,000  that  will be placed in
 5             service in qualified property  in  Illinois  and  is
 6             intended   to   retain   at  least  1,500  full-time
 7             equivalent  jobs  at  a   designated   location   in
 8             Illinois; or
 9                  (B)  it   meets  the  criteria  of  subdivision
10             (a)(3)(B), (a)(3)(C), or (a)(3)(D) of Section 5.5 of
11             the Illinois Enterprise Zone Act;
12             (2)  it is designated as a High Impact  Business  by
13        the Department of Commerce and Community Affairs; and
14             (3)  it  is  certified by the Department of Commerce
15        and Community Affairs as complying with the  requirements
16        specified in clauses (1) and (2) of this Section.
17        The  Department  of  Commerce and Community Affairs shall
18    determine the period during  which  the  exemption  from  the
19    Electricity  Excise  Tax  Law  and  the charges imposed under
20    Section 9-222 are in effect, which shall not exceed 20  years
21    from the date of initial certification, and shall specify the
22    percentage  of  the  exemption from those taxes or additional
23    charges.
24        The Department  of  Commerce  and  Community  Affairs  is
25    authorized  to  promulgate rules and regulations to carry out
26    the provisions of  this  Section,  including  procedures  for
27    complying  with  the  requirements specified  in  clauses (1)
28    and (2) of this Section and procedures for applying  for  the
29    exemptions  authorized  under  this  Section;  to  define the
30    amounts and types  of  eligible   investments  that  business
31    enterprises  must  make in order to receive State utility tax
32    exemptions or exemptions from the additional charges  imposed
33    under Section 9-222 and this Section; to approve such utility
34    tax exemptions for business enterprises whose investments are
 
HB1599 Enrolled            -110-               LRB9207178TAcs
 1    not  yet placed in  service;  and  to  require  that business
 2    enterprises  granted  tax  exemptions  or   exemptions   from
 3    additional  charges  under  Section  9-222 repay the exempted
 4    amount if the business enterprise fails to  comply  with  the
 5    terms and conditions of the certification.
 6        Upon  certification  of  the  business enterprises by the
 7    Department of Commerce and Community Affairs, the  Department
 8    of Commerce and Community Affairs shall notify the Department
 9    of  Revenue  of the certification.  The Department of Revenue
10    shall notify the public utilities of the exemption status  of
11    business enterprises from the tax or pass-on charges of State
12    utility taxes.  The exemption status shall take effect within
13    3 months after certification of the business enterprise.
14    (Source: P.A. 91-914, eff. 7-7-00.)

15        (220 ILCS 5/16-126)
16        Sec.   16-126.   Membership   in  an  independent  system
17    operator.
18        (a)  The General Assembly finds that the establishment of
19    one or more independent system operators or their  functional
20    equivalents  is  required to facilitate the development of an
21    open and efficient marketplace for electric power and  energy
22    to   the  benefit  of  Illinois  consumers.  Therefore,  each
23    Illinois electric utility owning or controlling  transmission
24    facilities or providing transmission services in Illinois and
25    that  is  a member of the Mid-American Interconnected Network
26    as of the effective date of this amendatory Act of 1997 shall
27    submit  for  approval  to  the  Federal   Energy   Regulatory
28    Commission  an  application  for  establishing  or joining an
29    independent system operator that shall:
30             (1)  independently manage and  control  transmission
31        facilities of any electric utility;
32             (2)  provide for nondiscriminatory access to and use
33        of  the  transmission  system  for  buyers and sellers of
 
HB1599 Enrolled            -111-               LRB9207178TAcs
 1        electricity;
 2             (3)  direct  the  transmission  activities  of   the
 3        control area operators;
 4             (4)  coordinate, plan, and order the installation of
 5        new transmission facilities;
 6             (5)  adopt   inspection,  maintenance,  repair,  and
 7        replacement standards  for  the  transmission  facilities
 8        under  its  control  and  direct maintenance, repair, and
 9        replacement of all facilities under its control; and
10             (6)  implement procedures  and  act  to  assure  the
11        provision of adequate and reliable service.
12        These  standards  shall  be  consistent  with reliability
13    criteria no less stringent  than  those  established  by  the
14    Mid-American  Interconnected  Network  and the North American
15    Electric Reliability Council or their successors.
16        (b)  The requirements of  this  Section  may  be  met  by
17    joining   or   establishing  a  regional  independent  system
18    operator that meets the criteria  enumerated  in  subsections
19    (a),  (c),  and  (d)  of  this  Section, as determined by the
20    Commission. To achieve the objectives set forth in subsection
21    (a), the State of Illinois, through the appropriate officers,
22    departments, and agencies, shall work cooperatively with  the
23    appropriate officials and agencies of those States contiguous
24    to  this  State  and the Federal Energy Regulatory Commission
25    towards the formation of one  or  more  regional  independent
26    system operators.
27        (c)  The   independent   system   operator's   governance
28    structure   must  be  fair  and  nondiscriminatory,  and  the
29    independent system operator must be independent  of  any  one
30    market  participant or class of participants. The independent
31    system operator's rules of governance must  prevent  control,
32    or the appearance of control, of decision-making by any class
33    of participants.
34        (d)  Participants  in  the  independent  system  operator
 
HB1599 Enrolled            -112-               LRB9207178TAcs
 1    shall  make  available to the independent system operator all
 2    information required by the independent  system  operator  in
 3    performance   of   its   functions   described   herein.  The
 4    independent  system  operator  and  the  electric   utilities
 5    participating  in  the independent system operator shall make
 6    all  filings  required  by  the  Federal  Energy   Regulatory
 7    Commission. The independent system operator shall ensure that
 8    additional   filings   at   the   Federal  Energy  Regulatory
 9    Commission request confirmation of the relevant provisions of
10    this amendatory Act of 1997.
11        (e)  If  a  spot  market,  exchange  market,   or   other
12    market-based mechanism providing transparent real-time market
13    prices  for  electric  power  has  not  been  developed,  the
14    independent system operator or a closely cooperating agent of
15    the  independent  system  operator  may  provide an efficient
16    competitive power exchange auction  for  electric  power  and
17    energy,  open  on a nondiscriminatory basis to all suppliers,
18    which meets the loads of all auction customers  at  efficient
19    prices.
20        (f)  For   those   electric   utilities  referred  to  in
21    subsection (a) which have not filed with the  Federal  Energy
22    Regulatory  Commission  by  June  30, 1998 an application for
23    establishment  or  participation  in  an  independent  system
24    operator or if such application has not been approved by  the
25    Federal  Energy  Regulatory Commission by March 31, 1999, a 5
26    member Oversight Board shall be formed. The  Oversight  Board
27    shall  (1)  oversee  the  creation of an Illinois independent
28    system operator and (2) determine the composition and initial
29    terms of service of, and appoint the initial members of,  the
30    Illinois  independent system operator board of directors. The
31    Oversight Board shall consist of the following: (1) 3 persons
32    appointed by the Governor; (2) one person  appointed  by  the
33    Speaker  of  the House of Representatives; and (3) one person
34    appointed by the President of the Senate. The Oversight Board
 
HB1599 Enrolled            -113-               LRB9207178TAcs
 1    shall take  the  steps  that  are  necessary  to  ensure  the
 2    earliest  possible  incorporation  of an Illinois independent
 3    system operator under the Business Corporation Act  of  1983,
 4    and   shall  serve  until  the  Illinois  independent  system
 5    operator is incorporated.
 6        (g)  After  notice  and  hearing,  the  Commission  shall
 7    require each electric utility referred to in subsection  (a),
 8    that  is  not participating in an independent system operator
 9    meeting the requirements of subsections (a) and (c), to  seek
10    authority  from  the  Federal Energy Regulatory Commission to
11    transfer functional control of transmission facilities to the
12    Illinois independent  system  operator  for  control  by  the
13    Illinois  independent  system  operator  consistent  with the
14    requirements of subsection (a). Upon approval by the  Federal
15    Energy  Regulatory  Commission,  electric  utilities may also
16    elect to transfer ownership of transmission facilities to the
17    Illinois independent system operator.  Nothing  in  this  Act
18    shall  be deemed to preclude the  Illinois independent system
19    operator from (1) seeking authority, as necessary,  to  merge
20    with or otherwise combine its operations with those of one or
21    more   other  entities  authorized  to  provide  transmission
22    services, (2) purchasing or leasing transmission assets  from
23    transmission-owning  entities not required by this Section to
24    lease transmission facilities  to  the  Illinois  independent
25    system  operator,  or  (3) operating as a transmission public
26    utility under the Federal Power Act.
27        (h)  Any  other  owner  of  transmission  facilities   in
28    Illinois  not  required  by this Section to participate in an
29    independent system  operator  shall  be  permitted,  but  not
30    required,  to  become  a  member  of the Illinois independent
31    system operator.
32        (i)  The Illinois  independent  system  operator  created
33    under this Section, and any other independent system operator
34    authorized  by  the  Federal  Energy Regulatory Commission to
 
HB1599 Enrolled            -114-               LRB9207178TAcs
 1    provide transmission services as a public utility  under  the
 2    Federal  Power  Act  within  the  State of Illinois, shall be
 3    deemed to be a public utility for purposes of  Section  8-503
 4    and  8-509  of  this  Act.  An independent system operator or
 5    regional transmission organization that is the subject of  an
 6    order  entered by the Commission under Section 8-503 need not
 7    possess a certificate  of  service  authority  under  Section
 8    8-406 in order to be authorized to take the actions set forth
 9    in Section 8-509.
10        (j)  Electric utilities referred to in subsection (a) may
11    withdraw  from  the Illinois independent system operator upon
12    becoming a  member  of  an  independent  system  operator  or
13    operators conforming with the criteria in subsections (a) and
14    (c)  and  whose  formation and operation has been approved by
15    the Federal Energy  Regulatory  Commission.  This  subsection
16    does  not  relieve  any  electric  utility of any obligations
17    under Federal law.
18        (k)  Nothing  in  this  Section  shall  be  construed  as
19    imposing any requirements or obligations that are in conflict
20    with federal law.
21        (l)  A regional transmission organization  created  under
22    the  rules  of the Federal Energy Regulatory Commission shall
23    be  considered  to  be  the  functional  equivalent   of   an
24    independent system operator for purposes of this Section, and
25    an  electric  utility shall be deemed to meet its obligations
26    under  this  Section  through  membership   in   a   regional
27    transmission  organization  that fulfills the requirements of
28    an independent system operator under this Section.
29    (Source: P.A. 90-561, eff. 12-16-97.)

30        Section 950.  The Environmental Protection Act is amended
31    by changing Section 9.9 and adding Section 9.10 as follows:

32        (415 ILCS 5/9.9)
 
HB1599 Enrolled            -115-               LRB9207178TAcs
 1        Sec. 9.9.  Nitrogen oxides trading system.
 2        (a)  The General Assembly finds:
 3             (1)  That USEPA has issued a Final Rule published in
 4        the  Federal  Register  on  October  27,  1998,  entitled
 5        "Finding of Significant Contribution and  Rulemaking  for
 6        Certain  States  in  the Ozone Transport Assessment Group
 7        Region for Purposes of  Reducing  Regional  Transport  of
 8        Ozone",  hereinafter  referred  to as the "NOx SIP Call",
 9        compliance with which will require reducing emissions  of
10        nitrogen oxides ("NOx");
11             (2)  That  reducing  emissions  of  NOx in the State
12        helps the State to meet the national ambient air  quality
13        standard for ozone;
14             (3)  That  emissions  trading  is  a  cost-effective
15        means of obtaining reductions of NOx emissions.
16        (b)  The  Agency  shall propose and the Board shall adopt
17    regulations to implement an interstate  NOx  trading  program
18    (hereinafter  referred  to  as  the "NOx Trading Program") as
19    provided for in 40 CFR Part 96,  including  incorporation  by
20    reference  of  appropriate  provisions  of 40 CFR Part 96 and
21    regulations  to  address  40  CFR  Section  96.4(b),  Section
22    96.55(c), Subpart E, and Subpart I.  In addition, the  Agency
23    shall  propose  and  the  Board  shall  adopt  regulations to
24    implement NOx emission reduction programs  for  cement  kilns
25    and stationary internal combustion engines.
26        (c)  Allocations  of  NOx  allowances  to  large electric
27    generating units ("EGUs") and large  non-electric  generating
28    units  ("non-EGUs"), as defined by 40 CFR Part 96.4(a), shall
29    not exceed  the  State's  trading  budget  for  those  source
30    categories  to  be  included in the State Implementation Plan
31    for NOx.
32        (d)  In adopting regulations to implement the NOx Trading
33    Program, the Board shall:
34             (1)  assure that the economic impact  and  technical
 
HB1599 Enrolled            -116-               LRB9207178TAcs
 1        feasibility  of  NOx  emissions  reductions under the NOx
 2        Trading  Program   are   considered   relative   to   the
 3        traditional  regulatory control requirements in the State
 4        for EGUs and non-EGUs;
 5             (2)  provide that  emission  units,  as  defined  in
 6        Section 39.5(1) of this Act, may opt into the NOx Trading
 7        Program;
 8             (3)  provide   for   voluntary   reductions  of  NOx
 9        emissions from emission  units,  as  defined  in  Section
10        39.5(1)   of  this  Act,  not  otherwise  included  under
11        paragraph (c)  or  (d)(2)  of  this  Section  to  provide
12        additional   allowances   to  EGUs  and  non-EGUs  to  be
13        allocated by the Agency.  The regulations  shall  further
14        provide  that  such  voluntary reductions are verifiable,
15        quantifiable, permanent, and federally enforceable;
16             (4)  provide that the Agency  allocate  to  non-EGUs
17        allowances  that  are  designated in the rule, unless the
18        Agency has been directed to transfer the  allocations  to
19        another  unit  subject  to  the  requirements  of the NOx
20        Trading Program, and that upon shutdown of a non-EGU, the
21        unit may transfer or sell the  NOx  allowances  that  are
22        allocated to such unit; and
23             (5)  provide   that   the  Agency  shall  set  aside
24        annually a number of allowances, not to exceed 5% of  the
25        total  EGU  trading  budget,  to be made available to new
26        EGUs.
27                  (A)  Those  EGUs   that   commence   commercial
28             operation,  as  defined in 40 CFR Section 96.2, at a
29             time that is more than half way through the  control
30             period  in  2003 2002 shall return to the Agency any
31             allowances that were issued to it by the Agency  and
32             were not used for compliance in 2004 2003.
33                  (B)  The  Agency  may charge EGUs that commence
34             commercial operation, as defined in 40  CFR  Section
 
HB1599 Enrolled            -117-               LRB9207178TAcs
 1             96.2,   on   or  after  January  1,  2003,  for  the
 2             allowances it issues to them.
 3        (e)  The Agency may adopt procedural rules, as necessary,
 4    to  implement  the  regulations  promulgated  by  the   Board
 5    pursuant   to  subsections  (b)  and  (d)  and  to  implement
 6    subsection (i) of this Section.
 7        (f)  Notwithstanding any provisions in subparts T, U, and
 8    W of Section 217 of Title 35 of the  Illinois  Administrative
 9    Code   to  the  contrary,  compliance  with  the  regulations
10    promulgated by the Board pursuant to subsections (b) and  (d)
11    of  this Section is required by May 31, 2004. The regulations
12    promulgated by the Board pursuant to subsections (b) and  (d)
13    of  this Section shall not be enforced until the later of May
14    1, 2003, or the first day of the control season subsequent to
15    the calendar year in which all of the other states subject to
16    the provisions of the NOx SIP Call that are located in  USEPA
17    Region  V  or  that  are  contiguous to Illinois have adopted
18    regulations to  implement  NOx  trading  programs  and  other
19    required  reductions of NOx emissions pursuant to the NOx SIP
20    Call, and such regulations have received  final  approval  by
21    USEPA  as part of the respective states' SIPS for ozone, or a
22    final FIP for ozone promulgated by  USEPA  is  effective  for
23    such other states.
24        (g)  To the extent that a court of competent jurisdiction
25    finds   a   provision   of   40  CFR  Part  96  invalid,  the
26    corresponding Illinois provision shall be stayed  until  such
27    provision  of  40  CFR  Part  96  is  found to be valid or is
28    re-promulgated. To the extent that  USEPA  or  any  court  of
29    competent   jurisdiction   stays  the  applicability  of  any
30    provision of the NOx SIP Call to any person  or  circumstance
31    relating  to  Illinois,  during  the period of that stay, the
32    effectiveness of the corresponding Illinois  provision  shall
33    be   stayed.  To  the  extent  that  the  invalidity  of  the
34    particular requirement or application does not  affect  other
 
HB1599 Enrolled            -118-               LRB9207178TAcs
 1    provisions or applications of the NOx SIP Call pursuant to 40
 2    CFR 51.121 or the NOx trading program pursuant to 40 CFR Part
 3    96  or 40 CFR Part 97, this Section, and rules or regulations
 4    promulgated hereunder,  will  be  given  effect  without  the
 5    invalid provisions or applications.
 6        (h)  Notwithstanding any other provision of this Act, any
 7    source  or  other  authorized person that participates in the
 8    NOx  Trading  Program  shall  be  eligible  to  exchange  NOx
 9    allowances with other sources in accordance with this Section
10    and with regulations promulgated by the Board or the Agency.
11        (i)  There is hereby created within the State Treasury an
12    interest-bearing special fund to be known as the NOx  Trading
13    System  Fund,  which  shall  be  used and administered by the
14    Agency for the purposes stated below:
15             (1)  To accept funds from persons who  purchase  NOx
16        allowances from the Agency;
17             (2)  To  disburse the proceeds of the NOx allowances
18        sales pro-rata to the owners or  operators  of  the  EGUs
19        that received allowances from the Agency but not from the
20        Agency's  set-aside,  in accordance with regulations that
21        may be promulgated by the Agency; and
22             (3)  To finance the reasonable costs incurred by the
23        Agency in the administration of the NOx Trading System.
24    (Source: P.A. 91-631, eff. 8-19-99.)

25        (415 ILCS 5/9.10 new)
26        Sec. 9.10.  Fossil fuel-fired electric generating plants.
27        (a)  The General Assembly finds and declares that:
28             (1)  fossil fuel-fired  electric  generating  plants
29        are  a  significant source of air emissions in this State
30        and have become the subject of a number of important  new
31        studies of their effects on the public health;
32             (2)  existing state and federal policies, that allow
33        older plants  that  meet  federal  standards  to  operate
 
HB1599 Enrolled            -119-               LRB9207178TAcs
 1        without   meeting   the   more   stringent   requirements
 2        applicable  to  new  plants,  are being questioned on the
 3        basis of their environmental  impacts  and  the  economic
 4        distortions  such  policies cause in a deregulated energy
 5        market;
 6             (3)  fossil fuel-fired  electric  generating  plants
 7        are,  or  may  be,  affected  by  a  number of regulatory
 8        programs, some of which are under review  or  development
 9        on the state and national levels, and to a certain extent
10        the  international level, including the federal acid rain
11        program, tropospheric ozone, mercury and other  hazardous
12        pollutant control requirements, regional haze, and global
13        warming;
14             (4)  scientific  uncertainty regarding the formation
15        of  certain  components  of  regional  haze  and  the air
16        quality modeling that predict impacts of control measures
17        requires careful  consideration  of  the  timing  of  the
18        control of some of the pollutants from these  facilities,
19        particularly  sulfur  dioxides  and  nitrogen oxides that
20        each interact with ammonia and other  substances  in  the
21        atmosphere;
22             (5)  the development of energy policies to promote a
23        safe, sufficient,  reliable, and affordable energy supply
24        on the state and national levels is being affected by the
25        on-going deregulation of the  power  generation  industry
26        and the evolving energy markets;
27             (6)  the  Governor's  formation of an Energy Cabinet
28        and the development of a State energy  policy  calls  for
29        actions  by  the Agency and the Board that are in harmony
30        with the energy needs and  policy  of  the  State,  while
31        protecting the public health and the environment;
32             (7)  Illinois  coal  is  an abundant resource and an
33        important component of Illinois' economy whose use should
34        be encouraged to the greatest extent possible  consistent
 
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 1        with protecting the public health and the environment;
 2             (8)  renewable forms of energy should be promoted as
 3        an  important  element  of  the  energy and environmental
 4        policies of the State and that it is a goal of the  State
 5        that at least 5% of the State's energy production and use
 6        be  derived from renewable forms of energy by 2010 and at
 7        least 15% from renewable forms of energy by 2020;
 8             (9)  efforts on the state  and  federal  levels  are
 9        underway   to   consider   the   multiple   environmental
10        regulations affecting electric generating plants in order
11        to  improve  the  ability  of government and the affected
12        industry to engage in effective planning through the  use
13        of multi-pollutant strategies; and
14             (10)  these  issues,  taken  together,  call  for  a
15        comprehensive review of the impact of these facilities on
16        the  public  health,  considering also the energy supply,
17        reliability, and costs, the role of  renewable  forms  of
18        energy,   and   the   developments  in  federal  law  and
19        regulations that may affect any state actions,  prior  to
20        making final decisions in Illinois.
21        (b)  Taking into account the findings and declarations of
22    the  General  Assembly  contained  in  subsection (a) of this
23    Section, the Agency shall, before September 30, 2004, but not
24    before September 30, 2003, issue  to  the  House  and  Senate
25    Committees  on  Environment  and Energy findings that address
26    the potential need for the control or reduction of  emissions
27    from  fossil fuel-fired electric generating plants, including
28    the following provisions:
29             (1)  reduction  of  nitrogen  oxide  emissions,   as
30        appropriate,   with   consideration   of  maximum  annual
31        emissions rate limits or establishment  of  an  emissions
32        trading   program   and   with   consideration   of   the
33        developments  in  federal  law  and  regulations that may
34        affect any State action, prior to making final  decisions
 
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 1        in Illinois;
 2             (2)  reduction   of  sulfur  dioxide  emissions,  as
 3        appropriate,  with  consideration   of   maximum   annual
 4        emissions  rate  limits  or establishment of an emissions
 5        trading   program   and   with   consideration   of   the
 6        developments in federal  law  and  regulations  that  may
 7        affect  any State action, prior to making final decisions
 8        in Illinois;
 9             (3)  incentives  to  promote  renewable  sources  of
10        energy consistent with  item (8)  of  subsection  (a)  of
11        this Section;
12             (4)  reduction    of    mercury    as   appropriate,
13        consideration of  the availability of control technology,
14        industry practice requirements, or incentive programs, or
15        some combination of these approaches that are  sufficient
16        to  prevent  unacceptable  local  impacts from individual
17        facilities and with consideration of the developments  in
18        federal  law  and  regulations  that may affect any state
19        action, prior to making final decisions in Illinois; and
20             (5)  establishment of a banking  system,  consistent
21        with  the  United States Department of Energy's voluntary
22        reporting system, for certifying  credits  for  voluntary
23        offsets  of  emissions of greenhouse gases, as identified
24        by the United States Environmental Protection Agency,  or
25        other  voluntary  reductions  of  greenhouse gases.  Such
26        reduction efforts may include, but are  not  limited  to,
27        carbon  sequestration, technology-based control measures,
28        energy efficiency measures,  and  the  use  of  renewable
29        energy sources.
30        The  Agency  shall  consider  the  impact  on  the public
31    health, considering also    energy  supply,  reliability  and
32    costs,   the   role   of   renewable  forms  of  energy,  and
33    developments in federal law and regulations that  may  affect
34    any  state  actions,  prior  to  making  final  decisions  in
 
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 1    Illinois.
 2        (c)  Nothing  in this Section is intended to or should be
 3    interpreted in a manner to limit or restrict the authority of
 4    the Illinois Environmental Protection Agency to  propose,  or
 5    the   Illinois   Pollution   Control   Board  to  adopt,  any
 6    regulations applicable or that may become applicable  to  the
 7    facilities  covered  by  this  Section  that  are required by
 8    federal law.
 9        (d)  The Agency may file proposed rules with the Board to
10    effectuate its findings provided to the Senate  Committee  on
11    Environment and Energy and the House Committee on Environment
12    and Energy in accordance with subsection (b) of this Section.
13    Any  such proposal shall not be submitted sooner than 90 days
14    after the issuance of the findings provided for in subsection
15    (b) of this Section.  The Board shall take action on any such
16    proposal within one  year  of  the  Agency's  filing  of  the
17    proposed rules.
18        (e)  This  Section  shall  apply only to those electrical
19    generating units  that  are  subject  to  the  provisions  of
20    Subpart   W   of  Part  217  of  Title  35  of  the  Illinois
21    Administrative Code, as promulgated by the Illinois Pollution
22    Control Board on December 21, 2000.

23        Section 955.  The Illinois Development Finance  Authority
24    Act is amended by adding Section 7.90 as follows:

25        (20 ILCS 3505/7.90 new)
26        Sec. 7.90.  Clean Coal and Energy Project Financing.
27        (a)  Findings  and  declaration  of policy.  It is hereby
28    found and declared that Illinois has abundant coal  resources
29    and,  in some areas of Illinois, the demand for power exceeds
30    the  generating  capacity.   Incentives  to   encourage   the
31    construction  of  coal-fired  electric  generating  plants in
32    Illinois to ensure power-generating capacity into the  future
 
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 1    are in the best interests of all of the citizens of Illinois.
 2    The  Authority  is  authorized to issue bonds to help finance
 3    Clean Coal and Energy projects pursuant to this  Section  and
 4    under this Act.
 5        (b)  Definition.  "Clean  Coal and Energy projects" means
 6    new electric generating facilities,  as  defined  in  Section
 7    605-332  of  the Department of Commerce and Community Affairs
 8    Law of the Civil Administrative Code of Illinois,  which  may
 9    include mine-mouth power plants, projects that employ the use
10    of  clean  coal  technology,  projects to develop alternative
11    energy sources, including renewable energy projects, projects
12    to provide scrubber technology for existing energy generating
13    plants,  or  projects  to   provide   electric   transmission
14    facilities.
15        (c)  Creation   of  reserve  funds.   The  Authority  may
16    establish and maintain one or more reserve funds  to  enhance
17    bonds  issued  by  the  Authority  for  Clean Coal and Energy
18    projects under this  Section.   There  may  be  one  or  more
19    accounts  in  these  reserve  funds  in  which  there  may be
20    deposited:
21             (1)  any proceeds of bonds issued by  the  Authority
22        required  to  be  deposited  therein  by the terms of any
23        contract between the Authority and its bondholders or any
24        resolution of the Authority;
25             (2)  any other moneys or funds of the Authority that
26        it may  determine  to  deposit  therein  from  any  other
27        source; and
28             (3)  any other moneys or funds made available to the
29        Authority.
30        Subject  to  the terms of any pledge to the owners of any
31    bonds, moneys in any reserve fund may be held and applied  to
32    the payment of the interest, premium, if any, or principal of
33    bonds or for any other purpose authorized by the Authority.
34        (d)  Powers and duties.  The Authority has the power:
 
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 1             (1)  To  issue  bonds in one or more series pursuant
 2        to one or more resolutions of the Authority for any Clean
 3        Coal and Energy projects authorized under  this  Section,
 4        within the authorization set forth in subsection (e).
 5             (2)  To  provide  for the funding of any reserves or
 6        other funds or accounts deemed necessary by the Authority
 7        in connection with any bonds issued by the Authority.
 8             (3) To pledge any funds of the  Authority  or  funds
 9        made  available  to  the Authority that may be applied to
10        such purpose as security for any bonds or any guarantees,
11        letters of credit, insurance contracts, or similar credit
12        support or liquidity instruments securing the bonds.
13             (4)  To enter  into  agreements  or  contracts  with
14        third  parties,  whether  public  or  private, including,
15        without limitation, the United  States  of  America,  the
16        State, or any department or agency thereof, to obtain any
17        appropriations,  grants,  loans,  or  guarantees that are
18        deemed necessary or desirable by the Authority.  Any such
19        guarantee, agreement, or contract may contain  terms  and
20        provisions  necessary or desirable in connection with the
21        program, subject to the requirements established  by  the
22        Act.
23             (5)  To  exercise such other powers as are necessary
24        or incidental to the foregoing.
25        (e)  Clean Coal Energy bond authorization  and  financing
26    limits.   In  addition  to  any  other bonds authorized to be
27    issued under this Act, the Authority may have outstanding, at
28    any time, bonds for the purpose enumerated in this Section in
29    an  aggregate  principal  amount  that   shall   not   exceed
30    $3,000,000,000,  of  which  no  more than $300,000,000 may be
31    issued to  finance  transmission  facilities,  no  more  than
32    $500,000,000  may  be issued to finance scrubbers at existing
33    generating plants, no more than $500,000,000 may be issued to
34    finance  alternative  energy  sources,  including   renewable
 
HB1599 Enrolled            -125-               LRB9207178TAcs
 1    energy  projects,  and  no  more  than  $1,700,000,000 may be
 2    issued to finance  new  electric  generating  facilities,  as
 3    defined  in Section 605-332 of the Department of Commerce and
 4    Community Affairs Law of the  Civil  Administrative  Code  of
 5    Illinois,  which  may  include  mine-mouth  power plants.  An
 6    application for a loan financed from  bond  proceeds  from  a
 7    borrower  or  its  affiliates  for  a  Clean  Coal and Energy
 8    project may not be approved by the Authority for an amount in
 9    excess of $450,000,000 for any borrower  or  its  affiliates.
10    These   bonds   shall   not  constitute  an  indebtedness  or
11    obligation of the State of Illinois and it shall  be  plainly
12    stated  on  the face of each bond that it does not constitute
13    an indebtedness or obligation of the State of Illinois but is
14    payable solely from the revenues, income, or other assets  of
15    the Authority pledged therefor.
16        (f)  Criteria   for   participation   in   the   program.
17    Applications to the Authority for financing of any Clean Coal
18    and  Energy project shall be reviewed by the Authority.  Upon
19    submission of any such application, the Authority staff shall
20    review the application for its completeness and may,  at  the
21    discretion  of  the  Authority staff, request such additional
22    information as it deems necessary  or  advisable  to  aid  in
23    review.  If the Authority receives applications for financing
24    for  Clean  Coal  and  Energy  projects in excess of the bond
25    authorization available for such financing at any  one  time,
26    it shall consider applications in the order of priority as it
27    shall determine, in consultation with other State agencies.

28        Section  999.   Effective date.  This Act takes effect on
29    July 1, 2001.

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