State of Illinois
92nd General Assembly
Legislation

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92_HB3045

 
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 1        AN ACT concerning taxes.

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

 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 9 as follows:

 6        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
 7        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
 8    aircraft, and trailers that are  required  to  be  registered
 9    with  an  agency  of  this  State,  each retailer required or
10    authorized to collect the tax imposed by this Act  shall  pay
11    to the Department the amount of such tax (except as otherwise
12    provided)  at the time when he is required to file his return
13    for the period during which such tax was  collected,  less  a
14    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
15    after January 1, 1990, or $5 per calendar year, whichever  is
16    greater,  which  is  allowed  to  reimburse  the retailer for
17    expenses incurred in collecting  the  tax,  keeping  records,
18    preparing and filing returns, remitting the tax and supplying
19    data  to the Department on request.  In the case of retailers
20    who report and pay the tax on a  transaction  by  transaction
21    basis,  as  provided  in this Section, such discount shall be
22    taken with each such tax  remittance  instead  of  when  such
23    retailer  files  his  periodic  return.   A retailer need not
24    remit that part of any tax collected by  him  to  the  extent
25    that  he  is required to remit and does remit the tax imposed
26    by the Retailers' Occupation Tax Act,  with  respect  to  the
27    sale of the same property.
28        Where  such  tangible  personal  property is sold under a
29    conditional sales contract, or under any other form  of  sale
30    wherein  the payment of the principal sum, or a part thereof,
31    is extended beyond the close of  the  period  for  which  the
 
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 1    return  is filed, the retailer, in collecting the tax (except
 2    as to motor vehicles, watercraft, aircraft, and trailers that
 3    are required to be registered with an agency of this  State),
 4    may  collect  for  each  tax  return  period,  only  the  tax
 5    applicable  to  that  part  of  the  selling  price  actually
 6    received during such tax return period.
 7        Except  as  provided  in  this  Section, on or before the
 8    twentieth day of each calendar  month,  such  retailer  shall
 9    file  a return for the preceding calendar month.  Such return
10    shall be filed on forms  prescribed  by  the  Department  and
11    shall   furnish   such  information  as  the  Department  may
12    reasonably require.
13        The Department may require  returns  to  be  filed  on  a
14    quarterly  basis.  If so required, a return for each calendar
15    quarter shall be filed on or before the twentieth day of  the
16    calendar  month  following  the end of such calendar quarter.
17    The taxpayer shall also file a return with the Department for
18    each of the first two months of each calendar quarter, on  or
19    before  the  twentieth  day  of the following calendar month,
20    stating:
21             1.  The name of the seller;
22             2.  The address of the principal place  of  business
23        from which he engages in the business of selling tangible
24        personal property at retail in this State;
25             3.  The total amount of taxable receipts received by
26        him  during  the  preceding  calendar month from sales of
27        tangible personal property by him during  such  preceding
28        calendar  month,  including receipts from charge and time
29        sales, but less all deductions allowed by law;
30             4.  The amount of credit provided in Section  2d  of
31        this Act;
32             5.  The amount of tax due;
33             5-5.  The signature of the taxpayer; and
34             6.  Such   other   reasonable   information  as  the
 
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 1        Department may require.
 2        If a taxpayer fails to sign a return within 30 days after
 3    the proper notice and demand for signature by the Department,
 4    the return shall be considered valid and any amount shown  to
 5    be due on the return shall be deemed assessed.
 6        Beginning  October 1, 1993, a taxpayer who has an average
 7    monthly tax liability of $150,000  or  more  shall  make  all
 8    payments  required  by  rules of the Department by electronic
 9    funds transfer. Beginning October 1, 1994, a taxpayer who has
10    an average monthly tax liability of $100,000  or  more  shall
11    make  all  payments  required  by  rules of the Department by
12    electronic funds  transfer.  Beginning  October  1,  1995,  a
13    taxpayer  who has an average monthly tax liability of $50,000
14    or more shall make all payments  required  by  rules  of  the
15    Department by electronic funds transfer. Beginning October 1,
16    2000,  a taxpayer who has an annual tax liability of $200,000
17    or more shall make all payments  required  by  rules  of  the
18    Department  by  electronic  funds transfer.  The term "annual
19    tax liability" shall be the sum of the taxpayer's liabilities
20    under  this  Act,  and  under  all  other  State  and   local
21    occupation  and  use tax laws administered by the Department,
22    for  the  immediately  preceding  calendar  year.  The   term
23    "average   monthly  tax  liability"  means  the  sum  of  the
24    taxpayer's liabilities under this Act, and  under  all  other
25    State  and  local occupation and use tax laws administered by
26    the Department, for the immediately preceding  calendar  year
27    divided by 12.
28        Before  August  1  of  each  year  beginning in 1993, the
29    Department  shall  notify  all  taxpayers  required  to  make
30    payments by electronic funds transfer. All taxpayers required
31    to make payments by  electronic  funds  transfer  shall  make
32    those payments for a minimum of one year beginning on October
33    1.
34        Any  taxpayer not required to make payments by electronic
 
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 1    funds transfer may make payments by electronic funds transfer
 2    with the permission of the Department.
 3        All taxpayers required  to  make  payment  by  electronic
 4    funds  transfer  and  any taxpayers authorized to voluntarily
 5    make payments by electronic funds transfer shall  make  those
 6    payments in the manner authorized by the Department.
 7        The Department shall adopt such rules as are necessary to
 8    effectuate  a  program  of  electronic funds transfer and the
 9    requirements of this Section.
10        Before October 1, 2000, if the taxpayer's average monthly
11    tax  liability  to  the  Department  under  this   Act,   the
12    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
13    Act, the Service Use Tax Act was $10,000 or more  during  the
14    preceding  4  complete  calendar  quarters,  he  shall file a
15    return with the Department each month by the 20th day of  the
16    month   next  following  the  month  during  which  such  tax
17    liability  is  incurred  and  shall  make  payments  to   the
18    Department  on  or before the 7th, 15th, 22nd and last day of
19    the month during which such liability  is  incurred.  On  and
20    after  October 1, 2000, if the taxpayer's average monthly tax
21    liability to the Department under this  Act,  the  Retailers'
22    Occupation  Tax  Act, the Service Occupation Tax Act, and the
23    Service Use Tax Act was $20,000 or more during the  preceding
24    4 complete calendar quarters, he shall file a return with the
25    Department  each  month  by  the  20th  day of the month next
26    following the  month  during  which  such  tax  liability  is
27    incurred  and  shall  make  payment  to  the Department on or
28    before the 7th, 15th, 22nd and last day of the  month  during
29    which  such  liability is incurred. If the month during which
30    such tax liability is incurred  began  prior  to  January  1,
31    1985,  each payment shall be in an amount equal to 1/4 of the
32    taxpayer's actual liability for the month or an amount set by
33    the Department not to  exceed  1/4  of  the  average  monthly
34    liability of the taxpayer to the Department for the preceding
 
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 1    4  complete calendar quarters (excluding the month of highest
 2    liability and the month of lowest liability in such 4 quarter
 3    period).  If the month during which  such  tax  liability  is
 4    incurred  begins  on  or  after January 1, 1985, and prior to
 5    January 1, 1987, each payment shall be in an amount equal  to
 6    22.5%  of  the  taxpayer's  actual liability for the month or
 7    27.5% of the taxpayer's liability for the same calendar month
 8    of the preceding year.  If the month during  which  such  tax
 9    liability is incurred begins on or after January 1, 1987, and
10    prior  to January 1, 1988, each payment shall be in an amount
11    equal to 22.5% of the taxpayer's  actual  liability  for  the
12    month  or  26.25%  of  the  taxpayer's liability for the same
13    calendar month of the preceding year.  If  the  month  during
14    which  such  tax  liability  is  incurred  begins on or after
15    January 1, 1988, and prior to January 1, 1989, or  begins  on
16    or  after January 1, 1996, each payment shall be in an amount
17    equal to 22.5% of the taxpayer's  actual  liability  for  the
18    month  or  25%  of  the  taxpayer's  liability  for  the same
19    calendar month of the preceding year.  If  the  month  during
20    which  such  tax  liability  is  incurred  begins on or after
21    January 1, 1989, and prior to January 1, 1996,  each  payment
22    shall be in an amount equal to 22.5% of the taxpayer's actual
23    liability  for  the  month or 25% of the taxpayer's liability
24    for the same calendar month of the preceding year or 100%  of
25    the  taxpayer's  actual  liability  for  the  quarter monthly
26    reporting  period.   The  amount  of  such  quarter   monthly
27    payments shall be credited against the final tax liability of
28    the  taxpayer's  return  for  that  month.  Before October 1,
29    2000, once applicable,  the  requirement  of  the  making  of
30    quarter  monthly  payments  to  the Department shall continue
31    until  such  taxpayer's  average  monthly  liability  to  the
32    Department during the preceding 4 complete calendar  quarters
33    (excluding  the  month  of highest liability and the month of
34    lowest  liability)  is  less  than  $9,000,  or  until   such
 
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 1    taxpayer's  average  monthly  liability  to the Department as
 2    computed  for  each  calendar  quarter  of  the  4  preceding
 3    complete  calendar  quarter  period  is  less  than  $10,000.
 4    However, if  a  taxpayer  can  show  the  Department  that  a
 5    substantial  change  in  the taxpayer's business has occurred
 6    which causes the taxpayer  to  anticipate  that  his  average
 7    monthly  tax  liability for the reasonably foreseeable future
 8    will fall below the $10,000 threshold stated above, then such
 9    taxpayer may petition  the  Department  for  change  in  such
10    taxpayer's  reporting  status.  On and after October 1, 2000,
11    once applicable, the requirement of  the  making  of  quarter
12    monthly  payments to the Department shall continue until such
13    taxpayer's average monthly liability to the Department during
14    the preceding 4 complete  calendar  quarters  (excluding  the
15    month of highest liability and the month of lowest liability)
16    is less than $19,000 or until such taxpayer's average monthly
17    liability  to  the  Department  as computed for each calendar
18    quarter of the 4 preceding complete calendar  quarter  period
19    is  less  than  $20,000.  However, if a taxpayer can show the
20    Department  that  a  substantial  change  in  the  taxpayer's
21    business has occurred which causes the taxpayer to anticipate
22    that his average monthly tax  liability  for  the  reasonably
23    foreseeable  future  will  fall  below  the $20,000 threshold
24    stated above, then such taxpayer may petition the  Department
25    for  a  change  in  such  taxpayer's  reporting  status.  The
26    Department shall  change  such  taxpayer's  reporting  status
27    unless  it  finds  that such change is seasonal in nature and
28    not likely to be long  term.  If  any  such  quarter  monthly
29    payment  is not paid at the time or in the amount required by
30    this Section, then the taxpayer shall be liable for penalties
31    and interest on the difference between the minimum amount due
32    and the amount of such quarter monthly payment  actually  and
33    timely  paid,  except  insofar as the taxpayer has previously
34    made payments for that month to the Department in  excess  of
 
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 1    the  minimum  payments  previously  due  as  provided in this
 2    Section.  The Department  shall  make  reasonable  rules  and
 3    regulations  to govern the quarter monthly payment amount and
 4    quarter monthly payment dates for taxpayers who file on other
 5    than a calendar monthly basis.
 6        If any such payment provided for in this Section  exceeds
 7    the  taxpayer's  liabilities  under  this Act, the Retailers'
 8    Occupation Tax Act, the Service Occupation Tax  Act  and  the
 9    Service  Use Tax Act, as shown by an original monthly return,
10    the  Department  shall  issue  to  the  taxpayer   a   credit
11    memorandum  no  later than 30 days after the date of payment,
12    which memorandum may be submitted  by  the  taxpayer  to  the
13    Department  in  payment  of  tax liability subsequently to be
14    remitted by the taxpayer to the Department or be assigned  by
15    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
16    Retailers' Occupation Tax Act, the Service Occupation Tax Act
17    or the Service Use Tax Act,  in  accordance  with  reasonable
18    rules  and  regulations  to  be prescribed by the Department,
19    except that if such excess payment is shown  on  an  original
20    monthly return and is made after December 31, 1986, no credit
21    memorandum shall be issued, unless requested by the taxpayer.
22    If  no  such  request  is  made, the taxpayer may credit such
23    excess payment  against  tax  liability  subsequently  to  be
24    remitted  by  the  taxpayer to the Department under this Act,
25    the Retailers' Occupation Tax Act, the Service Occupation Tax
26    Act or the Service Use Tax Act, in accordance with reasonable
27    rules and regulations prescribed by the Department.   If  the
28    Department  subsequently  determines  that all or any part of
29    the credit taken was not actually due to  the  taxpayer,  the
30    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
31    by 2.1% or 1.75% of the difference between the  credit  taken
32    and  that  actually due, and the taxpayer shall be liable for
33    penalties and interest on such difference.
34        If the retailer is otherwise required to file  a  monthly
 
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 1    return and if the retailer's average monthly tax liability to
 2    the  Department  does  not  exceed  $200,  the Department may
 3    authorize his returns to be filed on a quarter annual  basis,
 4    with  the  return for January, February, and March of a given
 5    year being due by April 20 of such year; with the return  for
 6    April,  May  and June of a given year being due by July 20 of
 7    such year; with the return for July, August and September  of
 8    a  given  year being due by October 20 of such year, and with
 9    the return for October, November and December of a given year
10    being due by January 20 of the following year.
11        If the retailer is otherwise required to file  a  monthly
12    or quarterly return and if the retailer's average monthly tax
13    liability   to  the  Department  does  not  exceed  $50,  the
14    Department may authorize his returns to be filed on an annual
15    basis, with the return for a given year being due by  January
16    20 of the following year.
17        Such  quarter  annual  and annual returns, as to form and
18    substance, shall be  subject  to  the  same  requirements  as
19    monthly returns.
20        Notwithstanding   any   other   provision   in  this  Act
21    concerning the time within which  a  retailer  may  file  his
22    return, in the case of any retailer who ceases to engage in a
23    kind  of  business  which  makes  him  responsible for filing
24    returns under this Act, such  retailer  shall  file  a  final
25    return  under  this Act with the Department not more than one
26    month after discontinuing such business.
27        In addition, with respect to motor vehicles,  watercraft,
28    aircraft,  and  trailers  that  are required to be registered
29    with an agency of this State,  every  retailer  selling  this
30    kind  of  tangible  personal  property  shall  file, with the
31    Department, upon a form to be prescribed and supplied by  the
32    Department,  a separate return for each such item of tangible
33    personal property which the retailer sells, except  that  if,
34    in   the  same  transaction,  (i)  a  retailer  of  aircraft,
 
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 1    watercraft, motor vehicles or trailers  transfers  more  than
 2    one aircraft, watercraft, motor vehicle or trailer to another
 3    aircraft,  watercraft,  motor vehicle or trailer retailer for
 4    the purpose  of  resale  or  (ii)  a  retailer  of  aircraft,
 5    watercraft,  motor  vehicles, or trailers transfers more than
 6    one aircraft, watercraft, motor  vehicle,  or  trailer  to  a
 7    purchaser  for  use as a qualifying rolling stock as provided
 8    in Section 3-55 of this Act, then that seller may report  the
 9    transfer  of  all the aircraft, watercraft, motor vehicles or
10    trailers involved in that transaction to  the  Department  on
11    the  same  uniform invoice-transaction reporting return form.
12    For purposes of this Section, "watercraft" means a  Class  2,
13    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
14    the Boat Registration and Safety Act, a personal  watercraft,
15    or any boat equipped with an inboard motor.
16        The  transaction  reporting  return  in the case of motor
17    vehicles or trailers that are required to be registered  with
18    an  agency  of  this State, shall be the same document as the
19    Uniform Invoice referred to in Section 5-402 of the  Illinois
20    Vehicle  Code  and  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; such other information as is required in
 
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 1    Section 5-402 of the Illinois Vehicle Code,  and  such  other
 2    information as the Department may reasonably require.
 3        The   transaction   reporting   return  in  the  case  of
 4    watercraft and aircraft must show the name and address of the
 5    seller; the name and address of the purchaser; the amount  of
 6    the  selling  price  including  the  amount  allowed  by  the
 7    retailer  for  traded-in property, if any; the amount allowed
 8    by the retailer for the traded-in tangible personal property,
 9    if any, to the extent to which Section 2 of this  Act  allows
10    an exemption for the value of traded-in property; the balance
11    payable  after  deducting  such  trade-in  allowance from the
12    total selling price; the amount of tax due from the  retailer
13    with respect to such transaction; the amount of tax collected
14    from  the  purchaser  by the retailer on such transaction (or
15    satisfactory evidence that  such  tax  is  not  due  in  that
16    particular  instance, if that is claimed to be the fact); the
17    place and date of the sale, a  sufficient  identification  of
18    the   property  sold,  and  such  other  information  as  the
19    Department may reasonably require.
20        Such transaction reporting  return  shall  be  filed  not
21    later  than  20  days  after the date of delivery of the item
22    that is being sold, but may be filed by the retailer  at  any
23    time   sooner  than  that  if  he  chooses  to  do  so.   The
24    transaction reporting return and tax remittance or  proof  of
25    exemption  from  the  tax  that is imposed by this Act may be
26    transmitted to the Department by way of the State agency with
27    which, or State officer  with  whom,  the  tangible  personal
28    property   must  be  titled  or  registered  (if  titling  or
29    registration is required) if the Department and  such  agency
30    or  State officer determine that this procedure will expedite
31    the processing of applications for title or registration.
32        With each such transaction reporting return, the retailer
33    shall remit the proper amount of tax  due  (or  shall  submit
34    satisfactory evidence that the sale is not taxable if that is
 
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 1    the  case),  to  the  Department or its agents, whereupon the
 2    Department shall  issue,  in  the  purchaser's  name,  a  tax
 3    receipt  (or  a certificate of exemption if the Department is
 4    satisfied that the particular sale is tax exempt) which  such
 5    purchaser  may  submit  to  the  agency  with which, or State
 6    officer with whom, he must title  or  register  the  tangible
 7    personal   property   that   is   involved   (if  titling  or
 8    registration is required)  in  support  of  such  purchaser's
 9    application  for an Illinois certificate or other evidence of
10    title or registration to such tangible personal property.
11        No retailer's failure or refusal to remit tax under  this
12    Act  precludes  a  user,  who  has paid the proper tax to the
13    retailer, from obtaining his certificate of  title  or  other
14    evidence of title or registration (if titling or registration
15    is  required)  upon  satisfying the Department that such user
16    has paid the proper tax (if tax is due) to the retailer.  The
17    Department shall adopt appropriate rules  to  carry  out  the
18    mandate of this paragraph.
19        If  the  user who would otherwise pay tax to the retailer
20    wants the transaction reporting return filed and the  payment
21    of  tax  or  proof of exemption made to the Department before
22    the retailer is willing to take these actions and  such  user
23    has  not  paid the tax to the retailer, such user may certify
24    to the fact of such delay by the retailer, and may (upon  the
25    Department   being   satisfied   of   the   truth   of   such
26    certification)  transmit  the  information  required  by  the
27    transaction  reporting  return  and the remittance for tax or
28    proof of exemption directly to the Department and obtain  his
29    tax  receipt  or  exemption determination, in which event the
30    transaction reporting return and tax  remittance  (if  a  tax
31    payment  was required) shall be credited by the Department to
32    the  proper  retailer's  account  with  the  Department,  but
33    without the 2.1% or  1.75%  discount  provided  for  in  this
34    Section  being  allowed.  When the user pays the tax directly
 
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 1    to the Department, he shall pay the tax in  the  same  amount
 2    and in the same form in which it would be remitted if the tax
 3    had been remitted to the Department by the retailer.
 4        Where  a  retailer  collects  the tax with respect to the
 5    selling price of tangible personal property  which  he  sells
 6    and  the  purchaser thereafter returns such tangible personal
 7    property and the retailer refunds the selling  price  thereof
 8    to  the  purchaser,  such  retailer shall also refund, to the
 9    purchaser, the tax so  collected  from  the  purchaser.  When
10    filing his return for the period in which he refunds such tax
11    to  the  purchaser, the retailer may deduct the amount of the
12    tax so refunded by him to the purchaser from  any  other  use
13    tax  which  such  retailer may be required to pay or remit to
14    the Department, as shown by such return, if the amount of the
15    tax to be deducted was previously remitted to the  Department
16    by  such  retailer.   If  the  retailer  has  not  previously
17    remitted  the  amount  of  such  tax to the Department, he is
18    entitled to no deduction under this Act upon  refunding  such
19    tax to the purchaser.
20        Any  retailer  filing  a  return under this Section shall
21    also include (for the purpose  of  paying  tax  thereon)  the
22    total  tax  covered  by such return upon the selling price of
23    tangible personal property purchased by him at retail from  a
24    retailer, but as to which the tax imposed by this Act was not
25    collected  from  the  retailer  filing  such return, and such
26    retailer shall remit the amount of such tax to the Department
27    when filing such return.
28        If experience indicates such action  to  be  practicable,
29    the  Department  may  prescribe  and furnish a combination or
30    joint return which will enable retailers, who are required to
31    file  returns  hereunder  and  also  under   the   Retailers'
32    Occupation  Tax  Act,  to  furnish all the return information
33    required by both Acts on the one form.
34        Where the retailer has more than one business  registered
 
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 1    with  the  Department  under separate registration under this
 2    Act, such retailer may not file each return that is due as  a
 3    single  return  covering  all such registered businesses, but
 4    shall  file  separate  returns  for  each   such   registered
 5    business.
 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 which is hereby created,
 9    the net revenue realized for the preceding month from the  1%
10    tax  on  sales  of  food for human consumption which is to be
11    consumed off the  premises  where  it  is  sold  (other  than
12    alcoholic  beverages,  soft  drinks  and  food which has been
13    prepared for  immediate  consumption)  and  prescription  and
14    nonprescription  medicines,  drugs,  medical  appliances  and
15    insulin,  urine  testing materials, syringes and needles used
16    by diabetics.
17        Beginning January 1,  1990,  each  month  the  Department
18    shall  pay  into the County and Mass Transit District Fund 4%
19    of the net revenue realized for the preceding month from  the
20    6.25%  general rate on the selling price of tangible personal
21    property which is purchased outside Illinois at retail from a
22    retailer and which is titled or registered by  an  agency  of
23    this State's government.
24        Beginning  January  1,  1990,  each  month the Department
25    shall pay into the State and Local Sales Tax Reform  Fund,  a
26    special  fund  in  the State Treasury, 20% of the net revenue
27    realized for the preceding month from the 6.25% general  rate
28    on  the  selling  price  of tangible personal property, other
29    than tangible personal property which  is  purchased  outside
30    Illinois  at  retail  from  a retailer and which is titled or
31    registered by an agency of this State's government.
32        Beginning August 1, 2000, each month the Department shall
33    pay into the State and Local Sales Tax Reform  Fund  100%  of
34    the  net  revenue  realized  for the preceding month from the
 
                            -14-               LRB9204860SMsb
 1    1.25% rate on the selling price of motor fuel and gasohol.
 2        Beginning January 1,  1990,  each  month  the  Department
 3    shall  pay  into the Local Government Tax Fund 16% of the net
 4    revenue realized for  the  preceding  month  from  the  6.25%
 5    general  rate  on  the  selling  price  of  tangible personal
 6    property which is purchased outside Illinois at retail from a
 7    retailer and which is titled or registered by  an  agency  of
 8    this State's government.
 9        Of the remainder of the moneys received by the Department
10    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
11    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
12    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
13    into the Build Illinois Fund; provided, however, that  if  in
14    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
15    as  the case may be, of the moneys received by the Department
16    and required to be paid into the Build Illinois Fund pursuant
17    to Section 3 of the Retailers' Occupation Tax Act, Section  9
18    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
19    Section  9 of the Service Occupation Tax Act, such Acts being
20    hereinafter called the "Tax Acts" and such aggregate of  2.2%
21    or  3.8%,  as  the  case  may be, of moneys being hereinafter
22    called the "Tax Act Amount", and (2) the  amount  transferred
23    to the Build Illinois Fund from the State and Local Sales Tax
24    Reform  Fund  shall  be less than the Annual Specified Amount
25    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
26    Act),  an amount equal to the difference shall be immediately
27    paid into the Build Illinois Fund from other moneys  received
28    by  the  Department  pursuant  to  the  Tax Acts; and further
29    provided, that if on the last business day of any  month  the
30    sum  of  (1) the Tax Act Amount required to be deposited into
31    the Build Illinois Bond Account in the  Build  Illinois  Fund
32    during  such month and (2) the amount transferred during such
33    month to the Build Illinois Fund from  the  State  and  Local
34    Sales  Tax  Reform Fund shall have been less than 1/12 of the
 
                            -15-               LRB9204860SMsb
 1    Annual Specified Amount, an amount equal  to  the  difference
 2    shall  be  immediately paid into the Build Illinois Fund from
 3    other moneys received by the Department pursuant to  the  Tax
 4    Acts;  and,  further  provided,  that  in  no event shall the
 5    payments required  under  the  preceding  proviso  result  in
 6    aggregate  payments  into the Build Illinois Fund pursuant to
 7    this clause (b) for any fiscal year in excess of the  greater
 8    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 9    for such fiscal year; and, further provided, that the amounts
10    payable  into  the  Build Illinois Fund under this clause (b)
11    shall be payable only until such time as the aggregate amount
12    on deposit under each trust indenture securing  Bonds  issued
13    and  outstanding  pursuant  to the Build Illinois Bond Act is
14    sufficient, taking into account any future investment income,
15    to fully provide, in accordance with such indenture, for  the
16    defeasance of or the payment of the principal of, premium, if
17    any,  and interest on the Bonds secured by such indenture and
18    on any Bonds expected to be issued thereafter  and  all  fees
19    and  costs  payable with respect thereto, all as certified by
20    the Director of the Bureau of the Budget.   If  on  the  last
21    business  day  of  any  month  in which Bonds are outstanding
22    pursuant to the Build Illinois Bond Act, the aggregate of the
23    moneys deposited in the Build Illinois Bond  Account  in  the
24    Build  Illinois  Fund  in  such  month shall be less than the
25    amount required to be transferred  in  such  month  from  the
26    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
27    Retirement and Interest Fund pursuant to Section  13  of  the
28    Build  Illinois  Bond Act, an amount equal to such deficiency
29    shall be immediately paid from other moneys received  by  the
30    Department  pursuant  to  the  Tax Acts to the Build Illinois
31    Fund; provided, however, that any amounts paid to  the  Build
32    Illinois  Fund  in  any fiscal year pursuant to this sentence
33    shall be deemed to constitute payments pursuant to clause (b)
34    of  the  preceding  sentence  and  shall  reduce  the  amount
 
                            -16-               LRB9204860SMsb
 1    otherwise payable for such fiscal year pursuant to clause (b)
 2    of the  preceding  sentence.   The  moneys  received  by  the
 3    Department  pursuant to this Act and required to be deposited
 4    into the Build Illinois Fund are subject to the pledge, claim
 5    and charge set forth in Section 12 of the Build Illinois Bond
 6    Act.
 7        Subject to payment of amounts  into  the  Build  Illinois
 8    Fund  as  provided  in  the  preceding  paragraph  or  in any
 9    amendment thereto hereafter enacted, the following  specified
10    monthly   installment   of   the   amount  requested  in  the
11    certificate of the Chairman  of  the  Metropolitan  Pier  and
12    Exposition  Authority  provided  under  Section  8.25f of the
13    State Finance Act, but not in excess of the  sums  designated
14    as  "Total Deposit", shall be deposited in the aggregate from
15    collections under Section 9 of the Use Tax Act, Section 9  of
16    the  Service Use Tax Act, Section 9 of the Service Occupation
17    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
18    into  the  McCormick  Place  Expansion  Project  Fund  in the
19    specified fiscal years.
20             Fiscal Year                   Total Deposit
21                 1993                            $0
22                 1994                        53,000,000
23                 1995                        58,000,000
24                 1996                        61,000,000
25                 1997                        64,000,000
26                 1998                        68,000,000
27                 1999                        71,000,000
28                 2000                        75,000,000
29                 2001                        80,000,000
30                 2002                        84,000,000
31                 2003                        89,000,000
32                 2004                        93,000,000
33                 2005                        97,000,000
34                 2006                       102,000,000
 
                            -17-               LRB9204860SMsb
 1                 2007                       108,000,000
 2                 2008                       115,000,000
 3                 2009                       120,000,000
 4                 2010                       126,000,000
 5                 2011                       132,000,000
 6                 2012                       138,000,000
 7                 2013 and                   145,000,000
 8        each fiscal year
 9        thereafter that bonds
10        are outstanding under
11        Section 13.2 of the
12        Metropolitan Pier and
13        Exposition Authority
14        Act, but not after fiscal year 2029.
15        Beginning July 20, 1993 and in each month of each  fiscal
16    year  thereafter,  one-eighth  of the amount requested in the
17    certificate of the Chairman  of  the  Metropolitan  Pier  and
18    Exposition  Authority  for  that fiscal year, less the amount
19    deposited into the McCormick Place Expansion Project Fund  by
20    the  State Treasurer in the respective month under subsection
21    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
22    Authority  Act,  plus cumulative deficiencies in the deposits
23    required under this Section for previous  months  and  years,
24    shall be deposited into the McCormick Place Expansion Project
25    Fund,  until  the  full amount requested for the fiscal year,
26    but not in excess of the amount  specified  above  as  "Total
27    Deposit", has been deposited.
28        Subject  to  payment  of  amounts into the Build Illinois
29    Fund and the McCormick Place Expansion Project Fund  pursuant
30    to  the  preceding  paragraphs  or  in  any amendment thereto
31    hereafter enacted, each month the Department shall  pay  into
32    the Local Government Distributive Fund .4% of the net revenue
33    realized for the preceding month from the 5% general rate, or
34    .4%  of  80%  of  the  net revenue realized for the preceding
 
                            -18-               LRB9204860SMsb
 1    month from the 6.25% general rate, as the case may be, on the
 2    selling price of  tangible  personal  property  which  amount
 3    shall,  subject  to appropriation, be distributed as provided
 4    in Section 2 of the State Revenue Sharing Act. No payments or
 5    distributions pursuant to this paragraph shall be made if the
 6    tax imposed  by  this  Act  on  photoprocessing  products  is
 7    declared  unconstitutional,  or if the proceeds from such tax
 8    are unavailable for distribution because of litigation.
 9        Subject to payment of amounts  into  the  Build  Illinois
10    Fund,  the  McCormick  Place  Expansion Project Fund, and the
11    Local Government Distributive Fund pursuant to the  preceding
12    paragraphs  or  in  any amendments thereto hereafter enacted,
13    beginning July 1, 1993, the Department shall each  month  pay
14    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
15    revenue realized for  the  preceding  month  from  the  6.25%
16    general  rate  on  the  selling  price  of  tangible personal
17    property.
18        Of the remainder of the moneys received by the Department
19    pursuant to this Act,  (1)  75%  thereof  shall  be  paid  as
20    follows:   (A)   for that portion from motor fuel, as defined
21    in Section 1.1 of the Motor Fuel Tax  Law,  and  gasohol,  as
22    defined  in  Section 3-40 of the Use Tax Act, one-third shall
23    be  paid  into  the  Downstate  Public  Transportation  Fund,
24    one-third shall be paid into the Public Transportation  Fund,
25    and  one-third  shall be paid into the Road Fund; and (B) the
26    remainder shall be paid into the State Treasury; and (2)  25%
27    shall  be reserved in a special account and used only for the
28    transfer to the Common School Fund as  part  of  the  monthly
29    transfer  from  the  General  Revenue Fund in accordance with
30    Section 8a of the State Finance Act.
31        As soon as possible after the first day  of  each  month,
32    upon   certification   of  the  Department  of  Revenue,  the
33    Comptroller shall order transferred and the  Treasurer  shall
34    transfer  from the General Revenue Fund to the Motor Fuel Tax
 
                            -19-               LRB9204860SMsb
 1    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 2    realized  under  this  Act  for  the  second preceding month.
 3    Beginning April 1, 2000, this transfer is no longer  required
 4    and shall not be made.
 5        Net  revenue  realized  for  a month shall be the revenue
 6    collected by the State pursuant to this Act, less the  amount
 7    paid  out  during  that  month  as  refunds  to taxpayers for
 8    overpayment of liability.
 9        For greater simplicity of administration,  manufacturers,
10    importers  and  wholesalers whose products are sold at retail
11    in Illinois by numerous retailers, and who wish to do so, may
12    assume the responsibility for accounting and  paying  to  the
13    Department  all  tax  accruing under this Act with respect to
14    such sales, if the retailers who are  affected  do  not  make
15    written objection to the Department to this arrangement.
16    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
17    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
18    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
19    eff. 1-1-01; revised 8-30-00.)

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

22        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
23        Sec.  9.  Each  serviceman  required  or  authorized   to
24    collect  the  tax  herein imposed shall pay to the Department
25    the amount of such tax (except as otherwise provided) at  the
26    time  when  he  is required to file his return for the period
27    during which such tax was collected, less a discount of  2.1%
28    prior  to  January  1, 1990 and 1.75% on and after January 1,
29    1990, or $5 per calendar year, whichever is greater, which is
30    allowed to reimburse the serviceman for expenses incurred  in
31    collecting  the  tax,  keeping  records, preparing and filing
32    returns,  remitting  the  tax  and  supplying  data  to   the
 
                            -20-               LRB9204860SMsb
 1    Department  on request. A serviceman need not remit that part
 2    of any tax collected by him to the extent that he is required
 3    to pay and does pay the tax imposed by the Service Occupation
 4    Tax Act with respect to his sale  of  service  involving  the
 5    incidental transfer by him of the same property.
 6        Except  as  provided  hereinafter  in this Section, on or
 7    before  the  twentieth  day  of  each  calendar  month,  such
 8    serviceman shall file a return  for  the  preceding  calendar
 9    month  in accordance with reasonable Rules and Regulations to
10    be promulgated by the Department. Such return shall be  filed
11    on a form prescribed by the Department and shall contain such
12    information as the Department may reasonably require.
13        The  Department  may  require  returns  to  be filed on a
14    quarterly basis.  If so required, a return for each  calendar
15    quarter  shall be filed on or before the twentieth day of the
16    calendar month following the end of  such  calendar  quarter.
17    The taxpayer shall also file a return with the Department for
18    each  of the first two months of each calendar quarter, on or
19    before the twentieth day of  the  following  calendar  month,
20    stating:
21             1.  The name of the seller;
22             2.  The  address  of the principal place of business
23        from which he engages in business as a serviceman in this
24        State;
25             3.  The total amount of taxable receipts received by
26        him  during  the  preceding  calendar  month,   including
27        receipts  from  charge  and  time  sales,  but  less  all
28        deductions allowed by law;
29             4.  The  amount  of credit provided in Section 2d of
30        this Act;
31             5.  The amount of tax due;
32             5-5.  The signature of the taxpayer; and
33             6.  Such  other  reasonable   information   as   the
34        Department may require.
 
                            -21-               LRB9204860SMsb
 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        Beginning October 1, 1993, a taxpayer who has an  average
 6    monthly  tax  liability  of  $150,000  or more shall make all
 7    payments required by rules of the  Department  by  electronic
 8    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 9    has an average monthly tax  liability  of  $100,000  or  more
10    shall  make  all payments required by rules of the Department
11    by electronic funds transfer.  Beginning October 1,  1995,  a
12    taxpayer  who has an average monthly tax liability of $50,000
13    or more shall make all payments  required  by  rules  of  the
14    Department by electronic funds transfer. Beginning October 1,
15    2000,  a taxpayer who has an annual tax liability of $200,000
16    or more shall make all payments  required  by  rules  of  the
17    Department  by  electronic  funds transfer.  The term "annual
18    tax liability" shall be the sum of the taxpayer's liabilities
19    under  this  Act,  and  under  all  other  State  and   local
20    occupation  and  use tax laws administered by the Department,
21    for the  immediately  preceding  calendar  year.    The  term
22    "average   monthly  tax  liability"  means  the  sum  of  the
23    taxpayer's liabilities under this Act, and  under  all  other
24    State  and  local occupation and use tax laws administered by
25    the Department, for the immediately preceding  calendar  year
26    divided by 12.
27        Before  August  1  of  each  year  beginning in 1993, the
28    Department  shall  notify  all  taxpayers  required  to  make
29    payments by electronic funds transfer. All taxpayers required
30    to make payments by  electronic  funds  transfer  shall  make
31    those payments for a minimum of one year beginning on October
32    1.
33        Any  taxpayer not required to make payments by electronic
34    funds transfer may make payments by electronic funds transfer
 
                            -22-               LRB9204860SMsb
 1    with the permission of the Department.
 2        All taxpayers required  to  make  payment  by  electronic
 3    funds  transfer  and  any taxpayers authorized to voluntarily
 4    make payments by electronic funds transfer shall  make  those
 5    payments in the manner authorized by the Department.
 6        The Department shall adopt such rules as are necessary to
 7    effectuate  a  program  of  electronic funds transfer and the
 8    requirements of this Section.
 9        If the serviceman is otherwise required to file a monthly
10    return and if the serviceman's average monthly tax  liability
11    to  the  Department  does not exceed $200, the Department may
12    authorize his returns to be filed on a quarter annual  basis,
13    with  the  return  for January, February and March of a given
14    year being due by April 20 of such year; with the return  for
15    April,  May  and June of a given year being due by July 20 of
16    such year; with the return for July, August and September  of
17    a  given  year being due by October 20 of such year, and with
18    the return for October, November and December of a given year
19    being due by January 20 of the following year.
20        If the serviceman is otherwise required to file a monthly
21    or quarterly return and if the serviceman's  average  monthly
22    tax  liability  to  the  Department  does not exceed $50, the
23    Department may authorize his returns to be filed on an annual
24    basis, with the return for a given year being due by  January
25    20 of the following year.
26        Such  quarter  annual  and annual returns, as to form and
27    substance, shall be  subject  to  the  same  requirements  as
28    monthly returns.
29        Notwithstanding   any   other   provision   in  this  Act
30    concerning the time within which a serviceman  may  file  his
31    return, in the case of any serviceman who ceases to engage in
32    a  kind  of  business  which makes him responsible for filing
33    returns under this Act, such serviceman shall  file  a  final
34    return  under  this  Act  with the Department not more than 1
 
                            -23-               LRB9204860SMsb
 1    month after discontinuing such business.
 2        Where a serviceman collects the tax with respect  to  the
 3    selling  price  of  property which he sells and the purchaser
 4    thereafter returns such property and the  serviceman  refunds
 5    the  selling  price thereof to the purchaser, such serviceman
 6    shall also refund, to the purchaser,  the  tax  so  collected
 7    from  the purchaser. When filing his return for the period in
 8    which he refunds such tax to the  purchaser,  the  serviceman
 9    may  deduct  the  amount of the tax so refunded by him to the
10    purchaser from any other Service Use Tax, Service  Occupation
11    Tax,   retailers'  occupation  tax  or  use  tax  which  such
12    serviceman may be required to pay or remit to the Department,
13    as shown by such return, provided that the amount of the  tax
14    to  be  deducted  shall  previously have been remitted to the
15    Department by such serviceman. If the  serviceman  shall  not
16    previously  have  remitted  the  amount  of  such  tax to the
17    Department, he shall be entitled to  no  deduction  hereunder
18    upon refunding such tax to the purchaser.
19        Any  serviceman  filing  a  return  hereunder  shall also
20    include the total tax upon  the  selling  price  of  tangible
21    personal  property purchased for use by him as an incident to
22    a sale of service, and such serviceman shall remit the amount
23    of such tax to the Department when filing such return.
24        If experience indicates such action  to  be  practicable,
25    the  Department  may  prescribe  and furnish a combination or
26    joint return which will enable servicemen, who  are  required
27    to   file  returns  hereunder  and  also  under  the  Service
28    Occupation Tax Act, to furnish  all  the  return  information
29    required by both Acts on the one form.
30        Where   the   serviceman   has  more  than  one  business
31    registered with the Department  under  separate  registration
32    hereunder, such serviceman shall not file each return that is
33    due   as   a  single  return  covering  all  such  registered
34    businesses, but shall file separate  returns  for  each  such
 
                            -24-               LRB9204860SMsb
 1    registered business.
 2        Beginning  January  1,  1990,  each  month the Department
 3    shall pay into the State and Local Tax Reform Fund, a special
 4    fund in the State Treasury, the net revenue realized for  the
 5    preceding  month  from  the 1% tax on sales of food for human
 6    consumption which is to be consumed off the premises where it
 7    is sold (other than alcoholic beverages, soft drinks and food
 8    which  has  been  prepared  for  immediate  consumption)  and
 9    prescription and nonprescription  medicines,  drugs,  medical
10    appliances and insulin, urine testing materials, syringes and
11    needles used by diabetics.
12        Beginning  January  1,  1990,  each  month the Department
13    shall pay into the State and Local Sales Tax Reform Fund  20%
14    of  the net revenue realized for the preceding month from the
15    6.25%  general  rate  on  transfers  of   tangible   personal
16    property,  other  than  tangible  personal  property which is
17    purchased outside Illinois at  retail  from  a  retailer  and
18    which  is  titled  or registered by an agency of this State's
19    government.
20        Beginning August 1, 2000, each month the Department shall
21    pay into the State and Local Sales Tax Reform  Fund  100%  of
22    the  net  revenue  realized  for the preceding month from the
23    1.25% rate on the selling price of motor fuel and gasohol.
24        Of the remainder of the moneys received by the Department
25    pursuant to this Act, (a)  1.75% thereof shall be  paid  into
26    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
27    and on and after July 1, 1989, 3.8% thereof  shall  be   paid
28    into  the  Build Illinois Fund; provided, however, that if in
29    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
30    as the case may be, of the moneys received by the  Department
31    and required to be paid into the Build Illinois Fund pursuant
32    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
33    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
34    Section 9 of the Service Occupation Tax Act, such Acts  being
 
                            -25-               LRB9204860SMsb
 1    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 2    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
 3    called  the  "Tax Act Amount", and (2) the amount transferred
 4    to the Build Illinois Fund from the State and Local Sales Tax
 5    Reform Fund shall be less than the Annual  Specified   Amount
 6    (as  defined  in  Section  3 of the Retailers' Occupation Tax
 7    Act), an amount equal to the difference shall be  immediately
 8    paid  into the Build Illinois Fund from other moneys received
 9    by the Department pursuant  to  the  Tax  Acts;  and  further
10    provided,  that  if on the last business day of any month the
11    sum of (1) the Tax Act Amount required to be  deposited  into
12    the  Build  Illinois  Bond Account in the Build Illinois Fund
13    during such month and (2) the amount transferred during  such
14    month  to  the  Build  Illinois Fund from the State and Local
15    Sales Tax Reform Fund shall have been less than 1/12  of  the
16    Annual  Specified  Amount,  an amount equal to the difference
17    shall be immediately paid into the Build Illinois  Fund  from
18    other  moneys  received by the Department pursuant to the Tax
19    Acts; and, further provided,  that  in  no  event  shall  the
20    payments  required  under  the  preceding  proviso  result in
21    aggregate payments into the Build Illinois Fund  pursuant  to
22    this  clause (b) for any fiscal year in excess of the greater
23    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
24    for such fiscal year; and, further provided, that the amounts
25    payable into the Build Illinois Fund under  this  clause  (b)
26    shall be payable only until such time as the aggregate amount
27    on  deposit  under each trust indenture securing Bonds issued
28    and outstanding pursuant to the Build Illinois  Bond  Act  is
29    sufficient, taking into account any future investment income,
30    to  fully provide, in accordance with such indenture, for the
31    defeasance of or the payment of the principal of, premium, if
32    any, and interest on the Bonds secured by such indenture  and
33    on  any  Bonds  expected to be issued thereafter and all fees
34    and costs payable with respect thereto, all as  certified  by
 
                            -26-               LRB9204860SMsb
 1    the  Director  of  the  Bureau of the Budget.  If on the last
 2    business day of any month  in  which  Bonds  are  outstanding
 3    pursuant to the Build Illinois Bond Act, the aggregate of the
 4    moneys  deposited  in  the Build Illinois Bond Account in the
 5    Build Illinois Fund in such month  shall  be  less  than  the
 6    amount  required  to  be  transferred  in such month from the
 7    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 8    Retirement  and  Interest  Fund pursuant to Section 13 of the
 9    Build Illinois Bond Act, an amount equal to  such  deficiency
10    shall  be  immediately paid from other moneys received by the
11    Department pursuant to the Tax Acts  to  the  Build  Illinois
12    Fund;  provided,  however, that any amounts paid to the Build
13    Illinois Fund in any fiscal year pursuant  to  this  sentence
14    shall be deemed to constitute payments pursuant to clause (b)
15    of  the  preceding  sentence  and  shall  reduce  the  amount
16    otherwise payable for such fiscal year pursuant to clause (b)
17    of  the  preceding  sentence.   The  moneys  received  by the
18    Department pursuant to this Act and required to be  deposited
19    into the Build Illinois Fund are subject to the pledge, claim
20    and charge set forth in Section 12 of the Build Illinois Bond
21    Act.
22        Subject  to  payment  of  amounts into the Build Illinois
23    Fund as  provided  in  the  preceding  paragraph  or  in  any
24    amendment  thereto hereafter enacted, the following specified
25    monthly  installment  of  the   amount   requested   in   the
26    certificate  of  the  Chairman  of  the Metropolitan Pier and
27    Exposition Authority provided  under  Section  8.25f  of  the
28    State  Finance  Act, but not in excess of the sums designated
29    as "Total Deposit", shall be deposited in the aggregate  from
30    collections  under Section 9 of the Use Tax Act, Section 9 of
31    the Service Use Tax Act, Section 9 of the Service  Occupation
32    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
33    into the  McCormick  Place  Expansion  Project  Fund  in  the
34    specified fiscal years.
 
                            -27-               LRB9204860SMsb
 1          Fiscal Year                     Total Deposit
 2             1993                                   $0
 3             1994                           53,000,000
 4             1995                           58,000,000
 5             1996                           61,000,000
 6             1997                           64,000,000
 7             1998                           68,000,000
 8             1999                           71,000,000
 9             2000                           75,000,000
10             2001                           80,000,000
11             2002                           84,000,000
12             2003                           89,000,000
13             2004                           93,000,000
14             2005                           97,000,000
15             2006                           102,000,000
16             2007                           108,000,000
17             2008                           115,000,000
18             2009                           120,000,000
19             2010                           126,000,000
20             2011                           132,000,000
21             2012                           138,000,000
22             2013 and                       145,000,000
23        each fiscal year
24        thereafter that bonds
25        are outstanding under
26        Section 13.2 of the
27        Metropolitan Pier and
28        Exposition Authority Act,
29        but not after fiscal year 2029.
30        Beginning  July 20, 1993 and in each month of each fiscal
31    year thereafter, one-eighth of the amount  requested  in  the
32    certificate  of  the  Chairman  of  the Metropolitan Pier and
33    Exposition Authority for that fiscal year,  less  the  amount
34    deposited  into the McCormick Place Expansion Project Fund by
 
                            -28-               LRB9204860SMsb
 1    the State Treasurer in the respective month under  subsection
 2    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 3    Authority Act, plus cumulative deficiencies in  the  deposits
 4    required  under  this  Section for previous months and years,
 5    shall be deposited into the McCormick Place Expansion Project
 6    Fund, until the full amount requested for  the  fiscal  year,
 7    but  not  in  excess  of the amount specified above as "Total
 8    Deposit", has been deposited.
 9        Subject to payment of amounts  into  the  Build  Illinois
10    Fund  and the McCormick Place Expansion Project Fund pursuant
11    to the preceding  paragraphs  or  in  any  amendment  thereto
12    hereafter  enacted,  each month the Department shall pay into
13    the Local  Government  Distributive  Fund  0.4%  of  the  net
14    revenue  realized for the preceding month from the 5% general
15    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
16    preceding  month from the 6.25% general rate, as the case may
17    be, on the selling price of tangible personal property  which
18    amount  shall,  subject  to  appropriation, be distributed as
19    provided in Section 2 of the State Revenue  Sharing  Act.  No
20    payments or distributions pursuant to this paragraph shall be
21    made  if  the  tax  imposed  by  this Act on photo processing
22    products is declared unconstitutional,  or  if  the  proceeds
23    from  such  tax  are  unavailable for distribution because of
24    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        All remaining moneys received by the Department  pursuant
 
                            -29-               LRB9204860SMsb
 1    to  this Act shall be paid as follows:  (1)  for that portion
 2    from motor fuel, as defined in Section 1.1 of the Motor  Fuel
 3    Tax  Law,  and gasohol, as defined in Section 3-40 of the Use
 4    Tax Act, one-third shall be paid into  the  Downstate  Public
 5    Transportation  Fund, one-third shall be paid into the Public
 6    Transportation Fund, and one-third shall  be  paid  into  the
 7    Road  Fund;  and  (2)  the  remainder shall be paid  into the
 8    General Revenue Fund of the State Treasury.
 9        As soon as possible after the first day  of  each  month,
10    upon   certification   of  the  Department  of  Revenue,  the
11    Comptroller shall order transferred and the  Treasurer  shall
12    transfer  from the General Revenue Fund to the Motor Fuel Tax
13    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
14    realized  under  this  Act  for  the  second preceding month.
15    Beginning April 1, 2000, this transfer is no longer  required
16    and shall not be made.
17        Net  revenue  realized  for  a month shall be the revenue
18    collected by the State pursuant to this Act, less the  amount
19    paid  out  during  that  month  as  refunds  to taxpayers for
20    overpayment of liability.
21    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
22    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
23    91-872, eff. 7-1-00.)

24        Section 15.  The Service Occupation Tax Act is amended by
25    changing Section 9 as follows:

26        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
27        Sec.  9.   Each  serviceman  required  or  authorized  to
28    collect  the  tax  herein imposed shall pay to the Department
29    the amount of such tax at the time when  he  is  required  to
30    file  his  return  for  the  period during which such tax was
31    collectible, less a discount of  2.1%  prior  to  January  1,
32    1990,  and  1.75%  on  and  after  January 1, 1990, or $5 per
 
                            -30-               LRB9204860SMsb
 1    calendar year, whichever is  greater,  which  is  allowed  to
 2    reimburse  the serviceman for expenses incurred in collecting
 3    the tax,  keeping  records,  preparing  and  filing  returns,
 4    remitting  the  tax  and  supplying data to the Department on
 5    request.
 6        Where such tangible personal property  is  sold  under  a
 7    conditional  sales  contract, or under any other form of sale
 8    wherein the payment of the principal sum, or a part  thereof,
 9    is  extended  beyond  the  close  of the period for which the
10    return is filed, the serviceman, in collecting  the  tax  may
11    collect,  for each tax return period, only the tax applicable
12    to the part of the selling  price  actually  received  during
13    such tax return period.
14        Except  as  provided  hereinafter  in this Section, on or
15    before  the  twentieth  day  of  each  calendar  month,  such
16    serviceman shall file a return  for  the  preceding  calendar
17    month  in accordance with reasonable rules and regulations to
18    be promulgated by the Department of  Revenue.    Such  return
19    shall  be  filed  on  a form prescribed by the Department and
20    shall  contain  such  information  as  the   Department   may
21    reasonably require.
22        The  Department  may  require  returns  to  be filed on a
23    quarterly basis.  If so required, a return for each  calendar
24    quarter  shall be filed on or before the twentieth day of the
25    calendar month following the end of  such  calendar  quarter.
26    The taxpayer shall also file a return with the Department for
27    each  of the first two months of each calendar quarter, on or
28    before the twentieth day of  the  following  calendar  month,
29    stating:
30             1.  The name of the seller;
31             2.  The  address  of the principal place of business
32        from which he engages in business as a serviceman in this
33        State;
34             3.  The total amount of taxable receipts received by
 
                            -31-               LRB9204860SMsb
 1        him  during  the  preceding  calendar  month,   including
 2        receipts  from  charge  and  time  sales,  but  less  all
 3        deductions allowed by law;
 4             4.  The  amount  of credit provided in Section 2d of
 5        this Act;
 6             5.  The amount of tax due;
 7             5-5.  The signature of the taxpayer; and
 8             6.  Such  other  reasonable   information   as   the
 9        Department may require.
10        If a taxpayer fails to sign a return within 30 days after
11    the proper notice and demand for signature by the Department,
12    the  return shall be considered valid and any amount shown to
13    be due on the return shall be deemed assessed.
14        A serviceman may accept a Manufacturer's Purchase  Credit
15    certification from a purchaser in satisfaction of Service Use
16    Tax as provided in Section 3-70 of the Service Use Tax Act if
17    the  purchaser  provides  the  appropriate  documentation  as
18    required  by  Section  3-70  of  the  Service Use Tax Act.  A
19    Manufacturer's Purchase Credit certification, accepted  by  a
20    serviceman as provided in Section 3-70 of the Service Use Tax
21    Act,  may  be  used  by  that  serviceman  to satisfy Service
22    Occupation  Tax  liability  in  the  amount  claimed  in  the
23    certification, not to exceed 6.25% of the receipts subject to
24    tax from a qualifying purchase.
25        If the serviceman's average monthly tax liability to  the
26    Department does not exceed $200, the Department may authorize
27    his  returns  to be filed on a quarter annual basis, with the
28    return for January, February and March of a given year  being
29    due  by April 20 of such year; with the return for April, May
30    and June of a given year being due by July 20 of  such  year;
31    with  the  return  for  July, August and September of a given
32    year being due by October 20  of  such  year,  and  with  the
33    return  for  October,  November  and December of a given year
34    being due by January 20 of the following year.
 
                            -32-               LRB9204860SMsb
 1        If the serviceman's average monthly tax liability to  the
 2    Department  does not exceed $50, the Department may authorize
 3    his returns to be filed on an annual basis, with  the  return
 4    for  a  given  year  being due by January 20 of the following
 5    year.
 6        Such quarter annual and annual returns, as  to  form  and
 7    substance,  shall  be  subject  to  the  same requirements as
 8    monthly returns.
 9        Notwithstanding  any  other   provision   in   this   Act
10    concerning  the  time  within which a serviceman may file his
11    return, in the case of any serviceman who ceases to engage in
12    a kind of business which makes  him  responsible  for  filing
13    returns  under  this  Act, such serviceman shall file a final
14    return under this Act with the Department  not  more  than  1
15    month after discontinuing such business.
16        Beginning  October 1, 1993, a taxpayer who has an average
17    monthly tax liability of $150,000  or  more  shall  make  all
18    payments  required  by  rules of the Department by electronic
19    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
20    has  an  average  monthly  tax  liability of $100,000 or more
21    shall make all payments required by rules of  the  Department
22    by  electronic  funds transfer.  Beginning October 1, 1995, a
23    taxpayer who has an average monthly tax liability of  $50,000
24    or  more  shall  make  all  payments required by rules of the
25    Department by electronic funds transfer.   Beginning  October
26    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
27    $200,000 or more shall make all payments required by rules of
28    the  Department  by  electronic  funds  transfer.   The  term
29    "annual tax liability" shall be the  sum  of  the  taxpayer's
30    liabilities  under  this  Act,  and under all other State and
31    local  occupation  and  use  tax  laws  administered  by  the
32    Department, for the immediately preceding calendar year.  The
33    term  "average  monthly  tax  liability" means the sum of the
34    taxpayer's liabilities under this Act, and  under  all  other
 
                            -33-               LRB9204860SMsb
 1    State  and  local occupation and use tax laws administered by
 2    the Department, for the immediately preceding  calendar  year
 3    divided by 12.
 4        Before  August  1  of  each  year  beginning in 1993, the
 5    Department  shall  notify  all  taxpayers  required  to  make
 6    payments  by  electronic  funds  transfer.    All   taxpayers
 7    required  to make payments by electronic funds transfer shall
 8    make those payments for a minimum of one  year  beginning  on
 9    October 1.
10        Any  taxpayer not required to make payments by electronic
11    funds transfer may make payments by electronic funds transfer
12    with the permission of the Department.
13        All taxpayers required  to  make  payment  by  electronic
14    funds  transfer  and  any taxpayers authorized to voluntarily
15    make payments by electronic funds transfer shall  make  those
16    payments in the manner authorized by the Department.
17        The Department shall adopt such rules as are necessary to
18    effectuate  a  program  of  electronic funds transfer and the
19    requirements of this Section.
20        Where a serviceman 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 serviceman refunds the selling price thereof
24    to  the  purchaser, such serviceman 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 serviceman may deduct the amount of the
28    tax  so  refunded  by  him  to  the  purchaser from any other
29    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
30    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
31    required to pay or remit to the Department, as shown by  such
32    return,  provided  that  the amount of the tax to be deducted
33    shall previously have been remitted to the Department by such
34    serviceman.  If the  serviceman  shall  not  previously  have
 
                            -34-               LRB9204860SMsb
 1    remitted  the  amount of such tax to the Department, he shall
 2    be entitled to no deduction hereunder upon refunding such tax
 3    to the purchaser.
 4        If experience indicates such action  to  be  practicable,
 5    the  Department  may  prescribe  and furnish a combination or
 6    joint return which will enable servicemen, who  are  required
 7    to  file  returns  hereunder  and  also  under the Retailers'
 8    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
 9    Act,  to  furnish  all the return information required by all
10    said Acts on the one form.
11        Where  the  serviceman  has  more   than   one   business
12    registered  with  the Department under separate registrations
13    hereunder, such serviceman shall file  separate  returns  for
14    each registered business.
15        Beginning  January  1,  1990,  each  month the Department
16    shall pay into the Local  Government  Tax  Fund  the  revenue
17    realized  for the preceding month from the 1% tax on sales of
18    food for human consumption which is to be  consumed  off  the
19    premises  where  it  is sold (other than alcoholic beverages,
20    soft drinks and food which has been  prepared  for  immediate
21    consumption)  and prescription and nonprescription medicines,
22    drugs,  medical  appliances  and   insulin,   urine   testing
23    materials, syringes and needles used by diabetics.
24        Beginning  January  1,  1990,  each  month the Department
25    shall pay into the County and Mass Transit District  Fund  4%
26    of  the  revenue  realized  for  the preceding month from the
27    6.25% general rate.
28        Beginning August 1, 2000, each month the Department shall
29    pay into the County and Mass Transit District Fund 20% of the
30    net revenue realized for the preceding month from  the  1.25%
31    rate on the selling price of motor fuel and gasohol.
32        Beginning  January  1,  1990,  each  month the Department
33    shall pay into the Local  Government  Tax  Fund  16%  of  the
34    revenue  realized  for  the  preceding  month  from the 6.25%
 
                            -35-               LRB9204860SMsb
 1    general rate on transfers of tangible personal property.
 2        Beginning August 1, 2000, each month the Department shall
 3    pay into the Local Government Tax Fund 80% of the net revenue
 4    realized for the preceding month from the 1.25% rate  on  the
 5    selling price of motor fuel and gasohol.
 6        Of the remainder of the moneys received by the Department
 7    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
 8    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 9    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
10    into the Build Illinois Fund; provided, however, that  if  in
11    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12    as  the case may be, of the moneys received by the Department
13    and required to be paid into the Build Illinois Fund pursuant
14    to Section 3 of the Retailers' Occupation Tax Act, Section  9
15    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
16    Section  9 of the Service Occupation Tax Act, such Acts being
17    hereinafter called the "Tax Acts" and such aggregate of  2.2%
18    or  3.8%,  as  the  case  may be, of moneys being hereinafter
19    called the "Tax Act Amount", and (2) the  amount  transferred
20    to the Build Illinois Fund from the State and Local Sales Tax
21    Reform  Fund  shall  be less than the Annual Specified Amount
22    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
23    Act),  an amount equal to the difference shall be immediately
24    paid into the Build Illinois Fund from other moneys  received
25    by  the  Department  pursuant  to  the  Tax Acts; and further
26    provided, that if on the last business day of any  month  the
27    sum  of  (1) the Tax Act Amount required to be deposited into
28    the Build Illinois Account in the Build Illinois Fund  during
29    such  month  and (2) the amount transferred during such month
30    to the Build Illinois Fund from the State and Local Sales Tax
31    Reform Fund shall have been less  than  1/12  of  the  Annual
32    Specified  Amount, an amount equal to the difference shall be
33    immediately paid into the  Build  Illinois  Fund  from  other
34    moneys  received  by the Department pursuant to the Tax Acts;
 
                            -36-               LRB9204860SMsb
 1    and, further provided, that in no event  shall  the  payments
 2    required  under  the  preceding  proviso  result in aggregate
 3    payments into the Build Illinois Fund pursuant to this clause
 4    (b) for any fiscal year in excess of the greater of  (i)  the
 5    Tax  Act  Amount or (ii) the Annual Specified Amount for such
 6    fiscal year; and, further provided, that the amounts  payable
 7    into  the  Build Illinois Fund under this clause (b) shall be
 8    payable only until such  time  as  the  aggregate  amount  on
 9    deposit  under each trust indenture securing Bonds issued and
10    outstanding pursuant  to  the  Build  Illinois  Bond  Act  is
11    sufficient, taking into account any future investment income,
12    to  fully provide, in accordance with such indenture, for the
13    defeasance of or the payment of the principal of, premium, if
14    any, and interest on the Bonds secured by such indenture  and
15    on  any  Bonds  expected to be issued thereafter and all fees
16    and costs payable with respect thereto, all as  certified  by
17    the  Director  of  the  Bureau of the Budget.  If on the last
18    business day of any month  in  which  Bonds  are  outstanding
19    pursuant to the Build Illinois Bond Act, the aggregate of the
20    moneys  deposited  in  the Build Illinois Bond Account in the
21    Build Illinois Fund in such month  shall  be  less  than  the
22    amount  required  to  be  transferred  in such month from the
23    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
24    Retirement  and  Interest  Fund pursuant to Section 13 of the
25    Build Illinois Bond Act, an amount equal to  such  deficiency
26    shall  be  immediately paid from other moneys received by the
27    Department pursuant to the Tax Acts  to  the  Build  Illinois
28    Fund;  provided,  however, that any amounts paid to the Build
29    Illinois Fund in any fiscal year pursuant  to  this  sentence
30    shall be deemed to constitute payments pursuant to clause (b)
31    of  the  preceding  sentence  and  shall  reduce  the  amount
32    otherwise payable for such fiscal year pursuant to clause (b)
33    of  the  preceding  sentence.   The  moneys  received  by the
34    Department pursuant to this Act and required to be  deposited
 
                            -37-               LRB9204860SMsb
 1    into the Build Illinois Fund are subject to the pledge, claim
 2    and charge set forth in Section 12 of the Build Illinois Bond
 3    Act.
 4        Subject  to  payment  of  amounts into the Build Illinois
 5    Fund as  provided  in  the  preceding  paragraph  or  in  any
 6    amendment  thereto hereafter enacted, the following specified
 7    monthly  installment  of  the   amount   requested   in   the
 8    certificate  of  the  Chairman  of  the Metropolitan Pier and
 9    Exposition Authority provided  under  Section  8.25f  of  the
10    State  Finance  Act, but not in excess of the sums designated
11    as "Total Deposit", shall be deposited in the aggregate  from
12    collections  under Section 9 of the Use Tax Act, Section 9 of
13    the Service Use Tax Act, Section 9 of the Service  Occupation
14    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
15    into the  McCormick  Place  Expansion  Project  Fund  in  the
16    specified fiscal years.
17             Fiscal Year                   Total Deposit
18                 1993                            $0
19                 1994                        53,000,000
20                 1995                        58,000,000
21                 1996                        61,000,000
22                 1997                        64,000,000
23                 1998                        68,000,000
24                 1999                        71,000,000
25                 2000                        75,000,000
26                 2001                        80,000,000
27                 2002                        84,000,000
28                 2003                        89,000,000
29                 2004                        93,000,000
30                 2005                        97,000,000
31                 2006                       102,000,000
32                 2007                       108,000,000
33                 2008                       115,000,000
34                 2009                       120,000,000
 
                            -38-               LRB9204860SMsb
 1                 2010                       126,000,000
 2                 2011                       132,000,000
 3                 2012                       138,000,000
 4                 2013 and                   145,000,000
 5             each fiscal year
 6          thereafter that bonds
 7          are outstanding under
 8           Section 13.2 of the
 9          Metropolitan Pier and
10           Exposition Authority
11        Act, but not after fiscal year 2029.
12        Beginning  July 20, 1993 and in each month of each fiscal
13    year thereafter, one-eighth of the amount  requested  in  the
14    certificate  of  the  Chairman  of  the Metropolitan Pier and
15    Exposition Authority for that fiscal year,  less  the  amount
16    deposited  into the McCormick Place Expansion Project Fund by
17    the State Treasurer in the respective month under  subsection
18    (g)  of  Section  13  of the Metropolitan Pier and Exposition
19    Authority Act, plus cumulative deficiencies in  the  deposits
20    required  under  this  Section for previous months and years,
21    shall be deposited into the McCormick Place Expansion Project
22    Fund, until the full amount requested for  the  fiscal  year,
23    but  not  in  excess  of the amount specified above as "Total
24    Deposit", has been deposited.
25        Subject to payment of amounts  into  the  Build  Illinois
26    Fund  and the McCormick Place Expansion Project Fund pursuant
27    to the preceding  paragraphs  or  in  any  amendment  thereto
28    hereafter  enacted,  each month the Department shall pay into
29    the Local  Government  Distributive  Fund  0.4%  of  the  net
30    revenue  realized for the preceding month from the 5% general
31    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
32    preceding  month from the 6.25% general rate, as the case may
33    be, on the selling price of tangible personal property  which
34    amount  shall,  subject  to  appropriation, be distributed as
 
                            -39-               LRB9204860SMsb
 1    provided in Section 2 of the State Revenue Sharing  Act.   No
 2    payments or distributions pursuant to this paragraph shall be
 3    made  if  the  tax  imposed  by  this  Act on photoprocessing
 4    products is declared unconstitutional,  or  if  the  proceeds
 5    from  such  tax  are  unavailable for distribution because of
 6    litigation.
 7        Subject to payment of amounts  into  the  Build  Illinois
 8    Fund,  the  McCormick  Place  Expansion Project Fund, and the
 9    Local Government Distributive Fund pursuant to the  preceding
10    paragraphs  or  in  any amendments thereto hereafter enacted,
11    beginning July 1, 1993, the Department shall each  month  pay
12    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
13    revenue realized for  the  preceding  month  from  the  6.25%
14    general  rate  on  the  selling  price  of  tangible personal
15    property.
16        Remaining moneys received by the Department  pursuant  to
17    this  Act  shall  be  paid as follows:  (1)  for that portion
18    from motor fuel, as defined in Section 1.1 of the Motor  Fuel
19    Tax  Law,  and gasohol, as defined in Section 3-40 of the Use
20    Tax Act, one-third shall be paid into  the  Downstate  Public
21    Transportation  Fund, one-third shall be paid into the Public
22    Transportation Fund, and one-third shall  be  paid  into  the
23    Road  Fund;  and  (2)  the  remainder  shall be paid into the
24    General Revenue Fund of the State Treasury.
25        The Department may, upon separate  written  notice  to  a
26    taxpayer,  require  the taxpayer to prepare and file with the
27    Department on a form prescribed by the Department within  not
28    less  than  60  days  after  receipt  of the notice an annual
29    information return for the tax year specified in the  notice.
30    Such   annual  return  to  the  Department  shall  include  a
31    statement of gross receipts as shown by the  taxpayer's  last
32    Federal  income  tax  return.   If  the total receipts of the
33    business as reported in the Federal income tax return do  not
34    agree  with  the gross receipts reported to the Department of
 
                            -40-               LRB9204860SMsb
 1    Revenue for the same period, the taxpayer shall attach to his
 2    annual return a schedule showing a reconciliation  of  the  2
 3    amounts  and  the reasons for the difference.  The taxpayer's
 4    annual return to the Department shall also disclose the  cost
 5    of goods sold by the taxpayer during the year covered by such
 6    return,  opening  and  closing  inventories of such goods for
 7    such year, cost of goods used from stock or taken from  stock
 8    and  given  away  by  the taxpayer during such year, pay roll
 9    information of the taxpayer's business during such  year  and
10    any  additional  reasonable  information which the Department
11    deems would be helpful in determining  the  accuracy  of  the
12    monthly,  quarterly  or annual returns filed by such taxpayer
13    as hereinbefore provided for in this Section.
14        If the annual information return required by this Section
15    is not filed when and as  required,  the  taxpayer  shall  be
16    liable as follows:
17             (i)  Until  January  1,  1994, the taxpayer shall be
18        liable for a penalty equal to 1/6 of 1% of  the  tax  due
19        from such taxpayer under this Act during the period to be
20        covered  by  the annual return for each month or fraction
21        of a month until such return is filed  as  required,  the
22        penalty  to  be assessed and collected in the same manner
23        as any other penalty provided for in this Act.
24             (ii)  On and after January  1,  1994,  the  taxpayer
25        shall be liable for a penalty as described in Section 3-4
26        of the Uniform Penalty and Interest Act.
27        The chief executive officer, proprietor, owner or highest
28    ranking  manager  shall sign the annual return to certify the
29    accuracy of the information contained  therein.   Any  person
30    who  willfully  signs  the  annual return containing false or
31    inaccurate  information  shall  be  guilty  of  perjury   and
32    punished  accordingly.   The annual return form prescribed by
33    the Department  shall  include  a  warning  that  the  person
34    signing the return may be liable for perjury.
 
                            -41-               LRB9204860SMsb
 1        The  foregoing  portion  of  this  Section concerning the
 2    filing of an annual information return shall not apply  to  a
 3    serviceman  who  is not required to file an income tax return
 4    with the United States Government.
 5        As soon as possible after the first day  of  each  month,
 6    upon   certification   of  the  Department  of  Revenue,  the
 7    Comptroller shall order transferred and the  Treasurer  shall
 8    transfer  from the General Revenue Fund to the Motor Fuel Tax
 9    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
10    realized  under  this  Act  for  the  second preceding month.
11    Beginning April 1, 2000, this transfer is no longer  required
12    and shall not be made.
13        Net  revenue  realized  for  a month shall be the revenue
14    collected by the State pursuant to this Act, less the  amount
15    paid  out  during  that  month  as  refunds  to taxpayers for
16    overpayment of liability.
17        For greater simplicity of  administration,  it  shall  be
18    permissible  for  manufacturers,  importers  and  wholesalers
19    whose  products  are sold by numerous servicemen in Illinois,
20    and who wish to do  so,  to  assume  the  responsibility  for
21    accounting  and  paying  to  the  Department all tax accruing
22    under this Act with respect to such sales, if the  servicemen
23    who  are  affected  do  not  make  written  objection  to the
24    Department to this arrangement.
25    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
26    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
27    91-872, eff. 7-1-00.)

28        Section 20.  The Retailers' Occupation Tax Act is amended
29    by changing Section 3 as follows:

30        (35 ILCS 120/3) (from Ch. 120, par. 442)
31        Sec. 3.  Except as provided in this Section, on or before
32    the  twentieth  day  of  each  calendar  month,  every person
 
                            -42-               LRB9204860SMsb
 1    engaged in the business of selling tangible personal property
 2    at retail in this State during the preceding  calendar  month
 3    shall file a return with the Department, stating:
 4             1.  The name of the seller;
 5             2.  His  residence  address  and  the address of his
 6        principal place  of  business  and  the  address  of  the
 7        principal  place  of  business  (if  that  is a different
 8        address) from which he engages in the business of selling
 9        tangible personal property at retail in this State;
10             3.  Total amount of receipts received by him  during
11        the  preceding calendar month or quarter, as the case may
12        be, from sales of tangible personal  property,  and  from
13        services furnished, by him during such preceding calendar
14        month or quarter;
15             4.  Total   amount   received   by  him  during  the
16        preceding calendar month or quarter on  charge  and  time
17        sales  of  tangible  personal property, and from services
18        furnished, by him prior to the month or quarter for which
19        the return is filed;
20             5.  Deductions allowed by law;
21             6.  Gross receipts which were received by him during
22        the preceding calendar month  or  quarter  and  upon  the
23        basis of which the tax is imposed;
24             7.  The  amount  of credit provided in Section 2d of
25        this Act;
26             8.  The amount of tax due;
27             9.  The signature of the taxpayer; and
28             10.  Such  other  reasonable  information   as   the
29        Department may require.
30        If a taxpayer fails to sign a return within 30 days after
31    the proper notice and demand for signature by the Department,
32    the  return shall be considered valid and any amount shown to
33    be due on the return shall be deemed assessed.
34        Each return shall be  accompanied  by  the  statement  of
 
                            -43-               LRB9204860SMsb
 1    prepaid tax issued pursuant to Section 2e for which credit is
 2    claimed.
 3        A  retailer  may  accept a Manufacturer's Purchase Credit
 4    certification from a purchaser in satisfaction of Use Tax  as
 5    provided  in Section 3-85 of the Use Tax Act if the purchaser
 6    provides the appropriate documentation as required by Section
 7    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
 8    certification,  accepted by a retailer as provided in Section
 9    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
10    satisfy  Retailers'  Occupation  Tax  liability in the amount
11    claimed in the certification, not  to  exceed  6.25%  of  the
12    receipts subject to tax from a qualifying purchase.
13        The  Department  may  require  returns  to  be filed on a
14    quarterly basis.  If so required, a return for each  calendar
15    quarter  shall be filed on or before the twentieth day of the
16    calendar month following the end of  such  calendar  quarter.
17    The taxpayer shall also file a return with the Department for
18    each  of the first two months of each calendar quarter, on or
19    before the twentieth day of  the  following  calendar  month,
20    stating:
21             1.  The name of the seller;
22             2.  The  address  of the principal place of business
23        from which he engages in the business of selling tangible
24        personal property at retail in this State;
25             3.  The total amount of taxable receipts received by
26        him during the preceding calendar  month  from  sales  of
27        tangible  personal  property by him during such preceding
28        calendar month, including receipts from charge  and  time
29        sales, but less all deductions allowed by law;
30             4.  The  amount  of credit provided in Section 2d of
31        this Act;
32             5.  The amount of tax due; and
33             6.  Such  other  reasonable   information   as   the
34        Department may require.
 
                            -44-               LRB9204860SMsb
 1        If  a total amount of less than $1 is payable, refundable
 2    or creditable, such amount shall be disregarded if it is less
 3    than 50 cents and shall be increased to $1 if it is 50  cents
 4    or more.
 5        Beginning  October 1, 1993, a taxpayer who has an average
 6    monthly tax liability of $150,000  or  more  shall  make  all
 7    payments  required  by  rules of the Department by electronic
 8    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
 9    has  an  average  monthly  tax  liability of $100,000 or more
10    shall make all payments required by rules of  the  Department
11    by  electronic  funds transfer.  Beginning October 1, 1995, a
12    taxpayer who has an average monthly tax liability of  $50,000
13    or  more  shall  make  all  payments required by rules of the
14    Department by electronic funds transfer.   Beginning  October
15    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
16    $200,000 or more shall make all payments required by rules of
17    the  Department  by  electronic  funds  transfer.   The  term
18    "annual tax liability" shall be the  sum  of  the  taxpayer's
19    liabilities  under  this  Act,  and under all other State and
20    local  occupation  and  use  tax  laws  administered  by  the
21    Department, for the immediately preceding calendar year.  The
22    term  "average monthly tax liability" shall be the sum of the
23    taxpayer's liabilities under this Act, and  under  all  other
24    State  and  local occupation and use tax laws administered by
25    the Department, for the immediately preceding  calendar  year
26    divided by 12.
27        Before  August  1  of  each  year  beginning in 1993, the
28    Department  shall  notify  all  taxpayers  required  to  make
29    payments  by  electronic  funds  transfer.    All   taxpayers
30    required  to make payments by electronic funds transfer shall
31    make those payments for a minimum of one  year  beginning  on
32    October 1.
33        Any  taxpayer not required to make payments by electronic
34    funds transfer may make payments by electronic funds transfer
 
                            -45-               LRB9204860SMsb
 1    with the permission of the Department.
 2        All taxpayers required  to  make  payment  by  electronic
 3    funds  transfer  and  any taxpayers authorized to voluntarily
 4    make payments by electronic funds transfer shall  make  those
 5    payments in the manner authorized by the Department.
 6        The Department shall adopt such rules as are necessary to
 7    effectuate  a  program  of  electronic funds transfer and the
 8    requirements of this Section.
 9        Any amount which is required to be shown or  reported  on
10    any  return  or  other document under this Act shall, if such
11    amount is not a whole-dollar  amount,  be  increased  to  the
12    nearest  whole-dollar amount in any case where the fractional
13    part of a dollar is 50 cents or more, and  decreased  to  the
14    nearest  whole-dollar  amount  where the fractional part of a
15    dollar is less than 50 cents.
16        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  with  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
 
                            -46-               LRB9204860SMsb
 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        Where  the  same  person  has  more  than  one   business
10    registered  with  the Department under separate registrations
11    under this Act, such person may not file each return that  is
12    due   as   a  single  return  covering  all  such  registered
13    businesses, but shall file separate  returns  for  each  such
14    registered business.
15        In  addition, with respect to motor vehicles, watercraft,
16    aircraft, and trailers that are  required  to  be  registered
17    with  an  agency  of  this State, every retailer selling this
18    kind of tangible  personal  property  shall  file,  with  the
19    Department,  upon a form to be prescribed and supplied by the
20    Department, a separate return for each such item of  tangible
21    personal  property  which the retailer sells, except that if,
22    in  the  same  transaction,  (i)  a  retailer  of   aircraft,
23    watercraft,  motor  vehicles  or trailers transfers more than
24    one aircraft, watercraft, motor vehicle or trailer to another
25    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
26    retailer for the purpose of resale  or  (ii)  a  retailer  of
27    aircraft,  watercraft,  motor vehicles, or trailers transfers
28    more than one aircraft, watercraft, motor vehicle, or trailer
29    to a purchaser for use  as  a  qualifying  rolling  stock  as
30    provided  in  Section  2-5  of this Act, then that seller may
31    report  the  transfer  of  all  aircraft,  watercraft,  motor
32    vehicles or trailers involved  in  that  transaction  to  the
33    Department  on the same uniform invoice-transaction reporting
34    return form.  For  purposes  of  this  Section,  "watercraft"
 
                            -47-               LRB9204860SMsb
 1    means a Class 2, Class 3, or Class 4 watercraft as defined in
 2    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
 3    personal watercraft, or any boat  equipped  with  an  inboard
 4    motor.
 5        Any  retailer  who sells only motor vehicles, watercraft,
 6    aircraft, or trailers that are required to be registered with
 7    an agency of this State, so that  all  retailers'  occupation
 8    tax liability is required to be reported, and is reported, on
 9    such  transaction  reporting returns and who is not otherwise
10    required to file monthly or quarterly returns, need not  file
11    monthly or quarterly returns.  However, those retailers shall
12    be required to file returns on an annual basis.
13        The  transaction  reporting  return, in the case of motor
14    vehicles or trailers that are required to be registered  with
15    an  agency  of  this State, shall be the same document as the
16    Uniform Invoice referred to in Section 5-402 of The  Illinois
17    Vehicle  Code  and  must  show  the  name  and address of the
18    seller; the name and address of the purchaser; the amount  of
19    the  selling  price  including  the  amount  allowed  by  the
20    retailer  for  traded-in property, if any; the amount allowed
21    by the retailer for the traded-in tangible personal property,
22    if any, to the extent to which Section 1 of this  Act  allows
23    an exemption for the value of traded-in property; the balance
24    payable  after  deducting  such  trade-in  allowance from the
25    total selling price; the amount of tax due from the  retailer
26    with respect to such transaction; the amount of tax collected
27    from  the  purchaser  by the retailer on such transaction (or
28    satisfactory evidence that  such  tax  is  not  due  in  that
29    particular  instance, if that is claimed to be the fact); the
30    place and date of the sale; a  sufficient  identification  of
31    the  property  sold; such other information as is required in
32    Section 5-402 of The Illinois Vehicle Code,  and  such  other
33    information as the Department may reasonably require.
34        The   transaction   reporting   return  in  the  case  of
 
                            -48-               LRB9204860SMsb
 1    watercraft or aircraft must show the name and address of  the
 2    seller;  the name and address of the purchaser; the amount of
 3    the  selling  price  including  the  amount  allowed  by  the
 4    retailer for traded-in property, if any; the  amount  allowed
 5    by the retailer for the traded-in tangible personal property,
 6    if  any,  to the extent to which Section 1 of this Act allows
 7    an exemption for the value of traded-in property; the balance
 8    payable after deducting  such  trade-in  allowance  from  the
 9    total  selling price; the amount of tax due from the retailer
10    with respect to such transaction; the amount of tax collected
11    from the purchaser by the retailer on  such  transaction  (or
12    satisfactory  evidence  that  such  tax  is  not  due in that
13    particular instance, if that is claimed to be the fact);  the
14    place  and  date  of the sale, a sufficient identification of
15    the  property  sold,  and  such  other  information  as   the
16    Department may reasonably require.
17        Such  transaction  reporting  return  shall  be filed not
18    later than 20 days after the day of delivery of the item that
19    is being sold, but may be filed by the retailer at  any  time
20    sooner  than  that  if  he chooses to do so.  The transaction
21    reporting return and tax remittance  or  proof  of  exemption
22    from   the  Illinois  use  tax  may  be  transmitted  to  the
23    Department by way of the State agency with  which,  or  State
24    officer  with  whom  the  tangible  personal property must be
25    titled or registered (if titling or registration is required)
26    if the Department and such agency or State officer  determine
27    that   this   procedure   will  expedite  the  processing  of
28    applications for title or registration.
29        With each such transaction reporting return, the retailer
30    shall remit the proper amount of tax  due  (or  shall  submit
31    satisfactory evidence that the sale is not taxable if that is
32    the  case),  to  the  Department or its agents, whereupon the
33    Department shall issue, in the purchaser's name,  a  use  tax
34    receipt  (or  a certificate of exemption if the Department is
 
                            -49-               LRB9204860SMsb
 1    satisfied that the particular sale is tax exempt) which  such
 2    purchaser  may  submit  to  the  agency  with which, or State
 3    officer with whom, he must title  or  register  the  tangible
 4    personal   property   that   is   involved   (if  titling  or
 5    registration is required)  in  support  of  such  purchaser's
 6    application  for an Illinois certificate or other evidence of
 7    title or registration to such tangible personal property.
 8        No retailer's failure or refusal to remit tax under  this
 9    Act  precludes  a  user,  who  has paid the proper tax to the
10    retailer, from obtaining his certificate of  title  or  other
11    evidence of title or registration (if titling or registration
12    is  required)  upon  satisfying the Department that such user
13    has paid the proper tax (if tax is due) to the retailer.  The
14    Department shall adopt appropriate rules  to  carry  out  the
15    mandate of this paragraph.
16        If  the  user who would otherwise pay tax to the retailer
17    wants the transaction reporting return filed and the  payment
18    of  the  tax  or  proof  of  exemption made to the Department
19    before the retailer is willing to take these actions and such
20    user has not paid the tax to  the  retailer,  such  user  may
21    certify  to  the  fact  of such delay by the retailer and may
22    (upon the Department being satisfied of  the  truth  of  such
23    certification)  transmit  the  information  required  by  the
24    transaction  reporting  return  and the remittance for tax or
25    proof of exemption directly to the Department and obtain  his
26    tax  receipt  or  exemption determination, in which event the
27    transaction reporting return and tax  remittance  (if  a  tax
28    payment  was required) shall be credited by the Department to
29    the  proper  retailer's  account  with  the  Department,  but
30    without the 2.1% or  1.75%  discount  provided  for  in  this
31    Section  being  allowed.  When the user pays the tax directly
32    to the Department, he shall pay the tax in  the  same  amount
33    and in the same form in which it would be remitted if the tax
34    had been remitted to the Department by the retailer.
 
                            -50-               LRB9204860SMsb
 1        Refunds  made  by  the seller during the preceding return
 2    period  to  purchasers,  on  account  of  tangible   personal
 3    property  returned  to  the  seller,  shall  be  allowed as a
 4    deduction under subdivision 5 of  his  monthly  or  quarterly
 5    return,   as  the  case  may  be,  in  case  the  seller  had
 6    theretofore included the  receipts  from  the  sale  of  such
 7    tangible  personal  property in a return filed by him and had
 8    paid the tax  imposed  by  this  Act  with  respect  to  such
 9    receipts.
10        Where  the  seller  is a corporation, the return filed on
11    behalf of such corporation shall be signed by the  president,
12    vice-president,  secretary  or  treasurer  or by the properly
13    accredited agent of such corporation.
14        Where the seller is  a  limited  liability  company,  the
15    return filed on behalf of the limited liability company shall
16    be  signed by a manager, member, or properly accredited agent
17    of the limited liability company.
18        Except as provided in this Section, the  retailer  filing
19    the  return  under  this Section shall, at the time of filing
20    such return, pay to the Department the amount of tax  imposed
21    by  this Act less a discount of 2.1% prior to January 1, 1990
22    and 1.75% on and after January 1, 1990, or  $5  per  calendar
23    year, whichever is greater, which is allowed to reimburse the
24    retailer  for  the  expenses  incurred  in  keeping  records,
25    preparing and filing returns, remitting the tax and supplying
26    data  to  the  Department  on  request.   Any prepayment made
27    pursuant to Section 2d of this Act shall be included  in  the
28    amount  on which such 2.1% or 1.75% discount is computed.  In
29    the case of retailers  who  report  and  pay  the  tax  on  a
30    transaction   by  transaction  basis,  as  provided  in  this
31    Section, such discount shall be  taken  with  each  such  tax
32    remittance  instead  of when such retailer files his periodic
33    return.
34        Before October 1, 2000, if the taxpayer's average monthly
 
                            -51-               LRB9204860SMsb
 1    tax liability to the Department under this Act, the  Use  Tax
 2    Act,  the Service Occupation Tax Act, and the Service Use Tax
 3    Act, excluding any liability for  prepaid  sales  tax  to  be
 4    remitted  in  accordance  with  Section  2d  of this Act, was
 5    $10,000 or more during  the  preceding  4  complete  calendar
 6    quarters,  he  shall  file  a return with the Department each
 7    month by the 20th day of the month next following  the  month
 8    during  which  such  tax liability is incurred and shall make
 9    payments to the Department on or before the 7th,  15th,  22nd
10    and  last  day  of  the  month during which such liability is
11    incurred. On and after October 1,  2000,  if  the  taxpayer's
12    average  monthly  tax  liability to the Department under this
13    Act, the Use Tax Act, the Service Occupation Tax Act, and the
14    Service Use Tax Act,  excluding  any  liability  for  prepaid
15    sales  tax  to  be  remitted in accordance with Section 2d of
16    this Act, was $20,000 or more during the preceding 4 complete
17    calendar quarters, he shall file a return with the Department
18    each month by the 20th day of the month  next  following  the
19    month  during  which such tax liability is incurred and shall
20    make payment to the Department on or before  the  7th,  15th,
21    22nd and last day of the month during which such liability is
22    incurred.    If  the month during which such tax liability is
23    incurred began prior to January 1, 1985, each  payment  shall
24    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
25    liability for the month or an amount set  by  the  Department
26    not  to  exceed  1/4  of the average monthly liability of the
27    taxpayer to the  Department  for  the  preceding  4  complete
28    calendar  quarters  (excluding the month of highest liability
29    and the month of lowest liability in such 4 quarter  period).
30    If  the  month  during  which  such tax liability is incurred
31    begins on or after January 1, 1985 and prior  to  January  1,
32    1987,  each  payment  shall be in an amount equal to 22.5% of
33    the taxpayer's actual liability for the month or 27.5% of the
34    taxpayer's liability for  the  same  calendar  month  of  the
 
                            -52-               LRB9204860SMsb
 1    preceding year.  If the month during which such tax liability
 2    is  incurred  begins on or after January 1, 1987 and prior to
 3    January 1, 1988, each payment shall be in an amount equal  to
 4    22.5%  of  the  taxpayer's  actual liability for the month or
 5    26.25% of the taxpayer's  liability  for  the  same  calendar
 6    month  of the preceding year.  If the month during which such
 7    tax liability is incurred begins on or after January 1, 1988,
 8    and prior to January 1, 1989, or begins on or  after  January
 9    1, 1996, each payment shall be in an amount equal to 22.5% of
10    the  taxpayer's  actual liability for the month or 25% of the
11    taxpayer's liability for  the  same  calendar  month  of  the
12    preceding  year. If the month during which such tax liability
13    is incurred begins on or after January 1, 1989, and prior  to
14    January  1, 1996, each payment shall be in an amount equal to
15    22.5% of the taxpayer's actual liability for the month or 25%
16    of the taxpayer's liability for the same  calendar  month  of
17    the preceding year or 100% of the taxpayer's actual liability
18    for the quarter monthly reporting period.  The amount of such
19    quarter  monthly payments shall be credited against the final
20    tax liability  of  the  taxpayer's  return  for  that  month.
21    Before  October  1, 2000, once applicable, the requirement of
22    the making of quarter monthly payments to the  Department  by
23    taxpayers  having an average monthly tax liability of $10,000
24    or more as determined in  the  manner  provided  above  shall
25    continue  until  such taxpayer's average monthly liability to
26    the Department  during  the  preceding  4  complete  calendar
27    quarters  (excluding  the  month of highest liability and the
28    month of lowest liability) is less than $9,000, or until such
29    taxpayer's average monthly liability  to  the  Department  as
30    computed  for  each  calendar  quarter  of  the  4  preceding
31    complete  calendar  quarter  period  is  less  than  $10,000.
32    However,  if  a  taxpayer  can  show  the  Department  that a
33    substantial change in the taxpayer's  business  has  occurred
34    which  causes  the  taxpayer  to  anticipate that his average
 
                            -53-               LRB9204860SMsb
 1    monthly tax liability for the reasonably  foreseeable  future
 2    will fall below the $10,000 threshold stated above, then such
 3    taxpayer  may  petition  the  Department for a change in such
 4    taxpayer's reporting status.  On and after October  1,  2000,
 5    once  applicable,  the  requirement  of the making of quarter
 6    monthly payments to the Department  by  taxpayers  having  an
 7    average   monthly   tax  liability  of  $20,000  or  more  as
 8    determined in the manner provided above shall continue  until
 9    such  taxpayer's  average monthly liability to the Department
10    during the preceding 4 complete calendar quarters  (excluding
11    the  month  of  highest  liability  and  the  month of lowest
12    liability) is less than  $19,000  or  until  such  taxpayer's
13    average  monthly  liability to the Department as computed for
14    each calendar quarter of the 4  preceding  complete  calendar
15    quarter  period is less than $20,000.  However, if a taxpayer
16    can show the Department that  a  substantial  change  in  the
17    taxpayer's business has occurred which causes the taxpayer to
18    anticipate  that  his  average  monthly tax liability for the
19    reasonably foreseeable future will  fall  below  the  $20,000
20    threshold  stated  above, then such taxpayer may petition the
21    Department for a change in such taxpayer's reporting  status.
22    The  Department shall change such taxpayer's reporting status
23    unless it finds that such change is seasonal  in  nature  and
24    not  likely  to  be  long  term.  If any such quarter monthly
25    payment is not paid at the time or in the amount required  by
26    this Section, then the taxpayer shall be liable for penalties
27    and interest on the difference between the minimum amount due
28    as  a  payment and the amount of such quarter monthly payment
29    actually and timely paid, except insofar as the taxpayer  has
30    previously  made payments for that month to the Department in
31    excess of the minimum payments previously due as provided  in
32    this  Section. The Department shall make reasonable rules and
33    regulations to govern the quarter monthly payment amount  and
34    quarter monthly payment dates for taxpayers who file on other
 
                            -54-               LRB9204860SMsb
 1    than a calendar monthly basis.
 2        Without  regard to whether a taxpayer is required to make
 3    quarter monthly payments as specified above, any taxpayer who
 4    is required by Section 2d of this Act to  collect  and  remit
 5    prepaid  taxes  and has collected prepaid taxes which average
 6    in excess  of  $25,000  per  month  during  the  preceding  2
 7    complete  calendar  quarters,  shall  file  a return with the
 8    Department as required by Section 2f and shall make  payments
 9    to  the  Department on or before the 7th, 15th, 22nd and last
10    day of the month during which such liability is incurred.  If
11    the month during which such tax liability is  incurred  began
12    prior  to  the effective date of this amendatory Act of 1985,
13    each payment shall be in an amount not less than 22.5% of the
14    taxpayer's actual liability under Section 2d.  If  the  month
15    during  which  such  tax  liability  is incurred begins on or
16    after January 1, 1986, each payment shall  be  in  an  amount
17    equal  to  22.5%  of  the taxpayer's actual liability for the
18    month or 27.5% of  the  taxpayer's  liability  for  the  same
19    calendar  month of the preceding calendar year.  If the month
20    during which such tax liability  is  incurred  begins  on  or
21    after  January  1,  1987,  each payment shall be in an amount
22    equal to 22.5% of the taxpayer's  actual  liability  for  the
23    month  or  26.25%  of  the  taxpayer's liability for the same
24    calendar month of the preceding year.   The  amount  of  such
25    quarter  monthly payments shall be credited against the final
26    tax liability of the taxpayer's return for that  month  filed
27    under  this  Section or Section 2f, as the case may be.  Once
28    applicable, the requirement of the making of quarter  monthly
29    payments  to  the Department pursuant to this paragraph shall
30    continue until such taxpayer's average  monthly  prepaid  tax
31    collections during the preceding 2 complete calendar quarters
32    is  $25,000  or less.  If any such quarter monthly payment is
33    not paid at the time or in the amount required, the  taxpayer
34    shall   be   liable   for  penalties  and  interest  on  such
 
                            -55-               LRB9204860SMsb
 1    difference, except insofar as  the  taxpayer  has  previously
 2    made  payments  for  that  month  in  excess  of  the minimum
 3    payments previously due.
 4        If any payment provided for in this Section  exceeds  the
 5    taxpayer's  liabilities  under this Act, the Use Tax Act, the
 6    Service Occupation Tax Act and the Service Use  Tax  Act,  as
 7    shown on an original monthly return, the Department shall, if
 8    requested  by  the  taxpayer,  issue to the taxpayer a credit
 9    memorandum no later than 30 days after the date  of  payment.
10    The  credit  evidenced  by  such  credit  memorandum  may  be
11    assigned  by  the  taxpayer  to a similar taxpayer under this
12    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
13    Service  Use Tax Act, in accordance with reasonable rules and
14    regulations to be prescribed by the Department.  If  no  such
15    request  is made, the taxpayer may credit such excess payment
16    against tax liability subsequently  to  be  remitted  to  the
17    Department  under  this  Act,  the  Use  Tax Act, the Service
18    Occupation Tax Act or the Service Use Tax Act, in  accordance
19    with  reasonable  rules  and  regulations  prescribed  by the
20    Department.  If the Department subsequently  determined  that
21    all  or  any part of the credit taken was not actually due to
22    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
23    shall be reduced by 2.1% or 1.75% of the  difference  between
24    the  credit  taken  and  that actually due, and that taxpayer
25    shall  be  liable  for  penalties  and   interest   on   such
26    difference.
27        If a retailer of motor fuel is entitled to a credit under
28    Section 2d of this Act which exceeds the taxpayer's liability
29    to  the  Department  under  this  Act for the month which the
30    taxpayer is filing a return, the Department shall  issue  the
31    taxpayer a credit memorandum for the excess.
32        Beginning  January  1,  1990,  each  month the Department
33    shall pay into the Local Government Tax Fund, a special  fund
34    in  the  State  treasury  which  is  hereby  created, the net
 
                            -56-               LRB9204860SMsb
 1    revenue realized for the preceding month from the 1%  tax  on
 2    sales  of  food for human consumption which is to be consumed
 3    off the premises where  it  is  sold  (other  than  alcoholic
 4    beverages,  soft  drinks and food which has been prepared for
 5    immediate consumption) and prescription  and  nonprescription
 6    medicines,  drugs,  medical  appliances  and  insulin,  urine
 7    testing materials, syringes and needles used by diabetics.
 8        Beginning  January  1,  1990,  each  month the Department
 9    shall pay into the County and Mass Transit District  Fund,  a
10    special  fund  in the State treasury which is hereby created,
11    4% of the net revenue realized for the preceding  month  from
12    the 6.25% general rate.
13        Beginning August 1, 2000, each month the Department shall
14    pay into the County and Mass Transit District Fund 20% of the
15    net  revenue  realized for the preceding month from the 1.25%
16    rate on the selling price of motor fuel and gasohol.
17        Beginning January 1,  1990,  each  month  the  Department
18    shall  pay  into the Local Government Tax Fund 16% of the net
19    revenue realized for  the  preceding  month  from  the  6.25%
20    general  rate  on  the  selling  price  of  tangible personal
21    property.
22        Beginning August 1, 2000, each month the Department shall
23    pay into the Local Government Tax Fund 80% of the net revenue
24    realized for the preceding month from the 1.25% rate  on  the
25    selling price of motor fuel and gasohol.
26        Of the remainder of the moneys received by the Department
27    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
28    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
29    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
30    into the Build Illinois Fund; provided, however, that  if  in
31    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
32    as  the case may be, of the moneys received by the Department
33    and required to be paid into the Build Illinois Fund pursuant
34    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
 
                            -57-               LRB9204860SMsb
 1    Service  Use Tax Act, and Section 9 of the Service Occupation
 2    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
 3    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
 4    moneys being hereinafter called the "Tax Act Amount", and (2)
 5    the amount transferred to the Build Illinois  Fund  from  the
 6    State  and Local Sales Tax Reform Fund shall be less than the
 7    Annual Specified Amount (as hereinafter defined),  an  amount
 8    equal  to  the  difference shall be immediately paid into the
 9    Build  Illinois  Fund  from  other  moneys  received  by  the
10    Department pursuant to the Tax Acts;  the  "Annual  Specified
11    Amount"  means  the  amounts specified below for fiscal years
12    1986 through 1993:
13             Fiscal Year              Annual Specified Amount
14                 1986                       $54,800,000
15                 1987                       $76,650,000
16                 1988                       $80,480,000
17                 1989                       $88,510,000
18                 1990                       $115,330,000
19                 1991                       $145,470,000
20                 1992                       $182,730,000
21                 1993                      $206,520,000;
22    and means the Certified Annual Debt Service  Requirement  (as
23    defined  in Section 13 of the Build Illinois Bond Act) or the
24    Tax Act Amount, whichever is greater, for  fiscal  year  1994
25    and  each  fiscal year thereafter; and further provided, that
26    if on the last business day of any month the sum of  (1)  the
27    Tax  Act  Amount  required  to  be  deposited  into the Build
28    Illinois Bond Account in the Build Illinois Fund during  such
29    month  and  (2)  the amount transferred to the Build Illinois
30    Fund from the State and Local Sales  Tax  Reform  Fund  shall
31    have  been  less than 1/12 of the Annual Specified Amount, an
32    amount equal to the difference shall be immediately paid into
33    the Build Illinois Fund from other  moneys  received  by  the
34    Department  pursuant  to the Tax Acts; and, further provided,
 
                            -58-               LRB9204860SMsb
 1    that in no  event  shall  the  payments  required  under  the
 2    preceding proviso result in aggregate payments into the Build
 3    Illinois Fund pursuant to this clause (b) for any fiscal year
 4    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
 5    the Annual  Specified  Amount  for  such  fiscal  year.   The
 6    amounts payable into the Build Illinois Fund under clause (b)
 7    of the first sentence in this paragraph shall be payable only
 8    until such time as the aggregate amount on deposit under each
 9    trust   indenture   securing  Bonds  issued  and  outstanding
10    pursuant to the Build Illinois Bond Act is sufficient, taking
11    into account any future investment income, to fully  provide,
12    in  accordance  with such indenture, for the defeasance of or
13    the payment  of  the  principal  of,  premium,  if  any,  and
14    interest  on  the  Bonds secured by such indenture and on any
15    Bonds expected to be issued thereafter and all fees and costs
16    payable  with  respect  thereto,  all  as  certified  by  the
17    Director of the  Bureau  of  the  Budget.   If  on  the  last
18    business  day  of  any  month  in which Bonds are outstanding
19    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
20    moneys  deposited  in  the Build Illinois Bond Account in the
21    Build Illinois Fund in such month  shall  be  less  than  the
22    amount  required  to  be  transferred  in such month from the
23    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
24    Retirement  and  Interest  Fund pursuant to Section 13 of the
25    Build Illinois Bond Act, an amount equal to  such  deficiency
26    shall  be  immediately paid from other moneys received by the
27    Department pursuant to the Tax Acts  to  the  Build  Illinois
28    Fund;  provided,  however, that any amounts paid to the Build
29    Illinois Fund in any fiscal year pursuant  to  this  sentence
30    shall be deemed to constitute payments pursuant to clause (b)
31    of  the first sentence of this paragraph and shall reduce the
32    amount otherwise payable for such  fiscal  year  pursuant  to
33    that  clause  (b).   The  moneys  received  by the Department
34    pursuant to this Act and required to be  deposited  into  the
 
                            -59-               LRB9204860SMsb
 1    Build  Illinois  Fund  are  subject  to the pledge, claim and
 2    charge set forth in Section 12 of  the  Build  Illinois  Bond
 3    Act.
 4        Subject  to  payment  of  amounts into the Build Illinois
 5    Fund as  provided  in  the  preceding  paragraph  or  in  any
 6    amendment  thereto hereafter enacted, the following specified
 7    monthly  installment  of  the   amount   requested   in   the
 8    certificate  of  the  Chairman  of  the Metropolitan Pier and
 9    Exposition Authority provided  under  Section  8.25f  of  the
10    State  Finance  Act,  but not in excess of sums designated as
11    "Total Deposit", shall be deposited  in  the  aggregate  from
12    collections  under Section 9 of the Use Tax Act, Section 9 of
13    the Service Use Tax Act, Section 9 of the Service  Occupation
14    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
15    into the  McCormick  Place  Expansion  Project  Fund  in  the
16    specified fiscal years.
17             Fiscal Year                   Total Deposit
18                 1993                            $0
19                 1994                        53,000,000
20                 1995                        58,000,000
21                 1996                        61,000,000
22                 1997                        64,000,000
23                 1998                        68,000,000
24                 1999                        71,000,000
25                 2000                        75,000,000
26                 2001                        80,000,000
27                 2002                        84,000,000
28                 2003                        89,000,000
29                 2004                        93,000,000
30                 2005                        97,000,000
31                 2006                       102,000,000
32                 2007                       108,000,000
33                 2008                       115,000,000
34                 2009                       120,000,000
 
                            -60-               LRB9204860SMsb
 1                 2010                       126,000,000
 2                 2011                       132,000,000
 3                 2012                       138,000,000
 4                 2013 and                   145,000,000
 5        each fiscal year
 6        thereafter that bonds
 7        are outstanding under
 8        Section 13.2 of the
 9        Metropolitan Pier and
10        Exposition Authority
11        Act, but not after fiscal year 2029.
12        Beginning  July 20, 1993 and in each month of each fiscal
13    year thereafter, one-eighth of the amount  requested  in  the
14    certificate  of  the  Chairman  of  the Metropolitan Pier and
15    Exposition Authority for that fiscal year,  less  the  amount
16    deposited  into the McCormick Place Expansion Project Fund by
17    the State Treasurer in the respective month under  subsection
18    (g)  of  Section  13  of the Metropolitan Pier and Exposition
19    Authority Act, plus cumulative deficiencies in  the  deposits
20    required  under  this  Section for previous months and years,
21    shall be deposited into the McCormick Place Expansion Project
22    Fund, until the full amount requested for  the  fiscal  year,
23    but  not  in  excess  of the amount specified above as "Total
24    Deposit", has been deposited.
25        Subject to payment of amounts  into  the  Build  Illinois
26    Fund  and the McCormick Place Expansion Project Fund pursuant
27    to the preceding  paragraphs  or  in  any  amendment  thereto
28    hereafter  enacted,  each month the Department shall pay into
29    the Local  Government  Distributive  Fund  0.4%  of  the  net
30    revenue  realized for the preceding month from the 5% general
31    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
32    preceding  month from the 6.25% general rate, as the case may
33    be, on the selling price of tangible personal property  which
34    amount  shall,  subject  to  appropriation, be distributed as
 
                            -61-               LRB9204860SMsb
 1    provided in Section 2 of the State Revenue Sharing  Act.   No
 2    payments or distributions pursuant to this paragraph shall be
 3    made  if  the  tax  imposed  by  this  Act on photoprocessing
 4    products is declared unconstitutional,  or  if  the  proceeds
 5    from  such  tax  are  unavailable for distribution because of
 6    litigation.
 7        Subject to payment of amounts  into  the  Build  Illinois
 8    Fund,  the  McCormick  Place  Expansion Project Fund, and the
 9    Local Government Distributive Fund pursuant to the  preceding
10    paragraphs  or  in  any amendments thereto hereafter enacted,
11    beginning July 1, 1993, the Department shall each  month  pay
12    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
13    revenue realized for  the  preceding  month  from  the  6.25%
14    general  rate  on  the  selling  price  of  tangible personal
15    property.
16        Of the remainder of the moneys received by the Department
17    pursuant to this Act,  (1)  75%  thereof  shall  be  paid  as
18    follows:   (A)   for that portion from motor fuel, as defined
19    in Section 1.1 of the Motor Fuel Tax  Law,  and  gasohol,  as
20    defined  in  Section 3-40 of the Use Tax Act, one-third shall
21    be  paid  into  the  Downstate  Public  Transportation  Fund,
22    one-third shall be paid into the Public Transportation  Fund,
23    and  one-third  shall be paid into the Road Fund; and (B) the
24    remainder shall be paid into the State Treasury; and (2)  25%
25    shall  be reserved in a special account and used only for the
26    transfer to the Common School Fund as  part  of  the  monthly
27    transfer  from  the  General  Revenue Fund in accordance with
28    Section 8a of the State Finance Act.
29        The Department may, upon separate  written  notice  to  a
30    taxpayer,  require  the taxpayer to prepare and file with the
31    Department on a form prescribed by the Department within  not
32    less  than  60  days  after  receipt  of the notice an annual
33    information return for the tax year specified in the  notice.
34    Such   annual  return  to  the  Department  shall  include  a
 
                            -62-               LRB9204860SMsb
 1    statement of gross receipts as shown by the  retailer's  last
 2    Federal  income  tax  return.   If  the total receipts of the
 3    business as reported in the Federal income tax return do  not
 4    agree  with  the gross receipts reported to the Department of
 5    Revenue for the same period, the retailer shall attach to his
 6    annual return a schedule showing a reconciliation  of  the  2
 7    amounts  and  the reasons for the difference.  The retailer's
 8    annual return to the Department shall also disclose the  cost
 9    of goods sold by the retailer during the year covered by such
10    return,  opening  and  closing  inventories of such goods for
11    such year, costs of goods used from stock or taken from stock
12    and given away by the  retailer  during  such  year,  payroll
13    information  of  the retailer's business during such year and
14    any additional reasonable information  which  the  Department
15    deems  would  be  helpful  in determining the accuracy of the
16    monthly, quarterly or annual returns filed by  such  retailer
17    as provided for in this Section.
18        If the annual information return required by this Section
19    is  not  filed  when  and  as required, the taxpayer shall be
20    liable as follows:
21             (i)  Until January 1, 1994, the  taxpayer  shall  be
22        liable  for  a  penalty equal to 1/6 of 1% of the tax due
23        from such taxpayer under this Act during the period to be
24        covered by the annual return for each month  or  fraction
25        of  a  month  until such return is filed as required, the
26        penalty to be assessed and collected in the  same  manner
27        as any other penalty provided for in this Act.
28             (ii)  On  and  after  January  1, 1994, the taxpayer
29        shall be liable for a penalty as described in Section 3-4
30        of the Uniform Penalty and Interest Act.
31        The chief executive officer, proprietor, owner or highest
32    ranking manager shall sign the annual return to  certify  the
33    accuracy  of  the information contained therein.   Any person
34    who willfully signs the annual  return  containing  false  or
 
                            -63-               LRB9204860SMsb
 1    inaccurate   information  shall  be  guilty  of  perjury  and
 2    punished accordingly.  The annual return form  prescribed  by
 3    the  Department  shall  include  a  warning  that  the person
 4    signing the return may be liable for perjury.
 5        The provisions of this Section concerning the  filing  of
 6    an  annual  information return do not apply to a retailer who
 7    is not required to file an income tax return with the  United
 8    States Government.
 9        As  soon  as  possible after the first day of each month,
10    upon  certification  of  the  Department  of   Revenue,   the
11    Comptroller  shall  order transferred and the Treasurer shall
12    transfer from the General Revenue Fund to the Motor Fuel  Tax
13    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
14    realized under this  Act  for  the  second  preceding  month.
15    Beginning  April 1, 2000, this transfer is no longer required
16    and shall not be made.
17        Net revenue realized for a month  shall  be  the  revenue
18    collected  by the State pursuant to this Act, less the amount
19    paid out during  that  month  as  refunds  to  taxpayers  for
20    overpayment of liability.
21        For  greater simplicity of administration, manufacturers,
22    importers and wholesalers whose products are sold  at  retail
23    in Illinois by numerous retailers, and who wish to do so, may
24    assume  the  responsibility  for accounting and paying to the
25    Department all tax accruing under this Act  with  respect  to
26    such  sales,  if  the  retailers who are affected do not make
27    written objection to the Department to this arrangement.
28        Any  person  who  promotes,  organizes,  provides  retail
29    selling space for concessionaires or other types  of  sellers
30    at the Illinois State Fair, DuQuoin State Fair, county fairs,
31    local  fairs, art shows, flea markets and similar exhibitions
32    or events, including any transient  merchant  as  defined  by
33    Section  2 of the Transient Merchant Act of 1987, is required
34    to file a report with the Department providing  the  name  of
 
                            -64-               LRB9204860SMsb
 1    the  merchant's  business,  the name of the person or persons
 2    engaged in merchant's business,  the  permanent  address  and
 3    Illinois  Retailers Occupation Tax Registration Number of the
 4    merchant, the dates and  location  of  the  event  and  other
 5    reasonable  information that the Department may require.  The
 6    report must be filed not later than the 20th day of the month
 7    next following the month during which the event  with  retail
 8    sales  was  held.   Any  person  who  fails  to file a report
 9    required by this Section commits a business  offense  and  is
10    subject to a fine not to exceed $250.
11        Any  person  engaged  in the business of selling tangible
12    personal property at retail as a concessionaire or other type
13    of seller at the  Illinois  State  Fair,  county  fairs,  art
14    shows, flea markets and similar exhibitions or events, or any
15    transient merchants, as defined by Section 2 of the Transient
16    Merchant  Act of 1987, may be required to make a daily report
17    of the amount of such sales to the Department and to  make  a
18    daily  payment of the full amount of tax due.  The Department
19    shall impose this requirement when it finds that there  is  a
20    significant  risk  of loss of revenue to the State at such an
21    exhibition or event.   Such  a  finding  shall  be  based  on
22    evidence  that  a  substantial  number  of concessionaires or
23    other sellers who are  not  residents  of  Illinois  will  be
24    engaging   in  the  business  of  selling  tangible  personal
25    property at retail at  the  exhibition  or  event,  or  other
26    evidence  of  a  significant  risk  of loss of revenue to the
27    State.  The Department shall notify concessionaires and other
28    sellers affected by the imposition of this  requirement.   In
29    the   absence   of   notification   by  the  Department,  the
30    concessionaires and other sellers shall file their returns as
31    otherwise required in this Section.
32    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
33    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
34    7-12-99;  91-541,  eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
 
                            -65-               LRB9204860SMsb
 1    eff. 1-1-01; revised 1-15-01.)

 2        Section 99.  Effective date.  This Act  takes  effect  on
 3    January 1, 2002.

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