State of Illinois
92nd General Assembly
Legislation

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92_HB3371

 
                                               LRB9207230REdv

 1        AN ACT concerning coal.

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

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

 6        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 7        Sec. 6z-18.  A portion of the money paid into  the  Local
 8    Government  Tax Fund from sales of food for human consumption
 9    which is to be consumed off the premises  where  it  is  sold
10    (other  than  alcoholic beverages, soft drinks and food which
11    has been prepared for immediate consumption) and prescription
12    and nonprescription medicines, drugs, medical appliances  and
13    insulin,  urine  testing materials, syringes and needles used
14    by diabetics, which  occurred  in  municipalities,  shall  be
15    distributed  to  each municipality based upon the sales which
16    occurred  in  that  municipality.   The  remainder  shall  be
17    distributed  to  each  county  based  upon  the  sales  which
18    occurred in the unincorporated area of that county.
19        A portion of the money paid into the Local Government Tax
20    Fund from the 6.25% general use tax rate on the selling price
21    of tangible personal  property  which  is  purchased  outside
22    Illinois  at  retail  from  a retailer and which is titled or
23    registered by any agency of this State's government shall  be
24    distributed  to municipalities as provided in this paragraph.
25    Each municipality shall receive the  amount  attributable  to
26    sales   for   which   Illinois   addresses   for  titling  or
27    registration  purposes   are   given   as   being   in   such
28    municipality.  The remainder of the money paid into the Local
29    Government  Tax  Fund from such sales shall be distributed to
30    counties.  Each county shall receive the amount  attributable
31    to   sales  for  which  Illinois  addresses  for  titling  or
 
                            -2-                LRB9207230REdv
 1    registration purposes are  given  as  being  located  in  the
 2    unincorporated area of such county.
 3        A portion of the money paid into the Local Government Tax
 4    Fund from the 6.25% general rate (and, beginning July 1, 2000
 5    and  through  December 31, 2000, the 1.25% rate on motor fuel
 6    and gasohol, and,  beginning  January  1,  2002  and  through
 7    December  31,  2006, the 1.25% rate on coal) on sales subject
 8    to taxation under the Retailers' Occupation Tax Act  and  the
 9    Service Occupation Tax Act, which occurred in municipalities,
10    shall  be  distributed  to  each municipality, based upon the
11    sales which occurred  in  that  municipality.  The  remainder
12    shall  be  distributed  to  each county, based upon the sales
13    which occurred in the unincorporated area of such county.
14        For the purpose of determining allocation  to  the  local
15    government unit, a retail sale by a producer of coal or other
16    mineral  mined  in  Illinois is a sale at retail at the place
17    where  the  coal  or  other  mineral  mined  in  Illinois  is
18    extracted from the earth.  This paragraph does not  apply  to
19    coal  or other mineral when it is delivered or shipped by the
20    seller to the purchaser at a point outside Illinois  so  that
21    the  sale is exempt under the United States Constitution as a
22    sale in interstate or foreign commerce.
23        Whenever the Department determines that a refund of money
24    paid into the Local Government Tax Fund should be made  to  a
25    claimant   instead   of  issuing  a  credit  memorandum,  the
26    Department shall notify  the  State  Comptroller,  who  shall
27    cause  the order to be drawn for the amount specified, and to
28    the person named, in such notification from  the  Department.
29    Such  refund  shall be paid by the State Treasurer out of the
30    Local Government Tax Fund.
31        On or before the 25th day of  each  calendar  month,  the
32    Department  shall  prepare and certify to the Comptroller the
33    disbursement of stated sums of money to named  municipalities
34    and  counties,  the  municipalities  and counties to be those
 
                            -3-                LRB9207230REdv
 1    entitled to distribution of taxes or penalties  paid  to  the
 2    Department  during  the  second preceding calendar month. The
 3    amount to be paid to each municipality or county shall be the
 4    amount (not including credit memoranda) collected during  the
 5    second  preceding  calendar  month by the Department and paid
 6    into the Local  Government  Tax  Fund,  plus  an  amount  the
 7    Department  determines  is  necessary  to  offset any amounts
 8    which were erroneously paid to a different taxing  body,  and
 9    not  including  an amount equal to the amount of refunds made
10    during the second preceding calendar month by the Department,
11    and not including any amount which the Department  determines
12    is  necessary  to  offset  any amounts which are payable to a
13    different taxing  body  but  were  erroneously  paid  to  the
14    municipality or county.  Within 10 days after receipt, by the
15    Comptroller,   of   the  disbursement  certification  to  the
16    municipalities and counties,  provided for in this Section to
17    be  given  to  the  Comptroller  by   the   Department,   the
18    Comptroller  shall  cause  the  orders  to  be  drawn for the
19    respective  amounts  in  accordance   with   the   directions
20    contained in such certification.
21        When  certifying  the amount of monthly disbursement to a
22    municipality or county under  this  Section,  the  Department
23    shall increase or decrease that amount by an amount necessary
24    to  offset  any  misallocation of previous disbursements. The
25    offset amount  shall  be  the  amount  erroneously  disbursed
26    within  the  6  months  preceding the time a misallocation is
27    discovered.
28        The  provisions  directing  the  distributions  from  the
29    special fund in the  State  Treasury  provided  for  in  this
30    Section   shall  constitute  an  irrevocable  and  continuing
31    appropriation of all amounts as provided  herein.  The  State
32    Treasurer and State Comptroller are hereby authorized to make
33    distributions as provided in this Section.
34        In construing any development, redevelopment, annexation,
 
                            -4-                LRB9207230REdv
 1    preannexation  or  other  lawful agreement in effect prior to
 2    September 1, 1990, which describes or refers to receipts from
 3    a county or municipal retailers' occupation tax, use  tax  or
 4    service  occupation  tax  which  now  cannot be imposed, such
 5    description or reference  shall  be  deemed  to  include  the
 6    replacement  revenue  for  such  abolished taxes, distributed
 7    from the Local Government Tax Fund.
 8    (Source: P.A.  90-491,  eff.  1-1-98;  91-51,  eff.  6-30-99;
 9    91-872, eff. 7-1-00.)

10        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
11        Sec.  6z-20. Of the money received from the 6.25% general
12    rate (and, beginning July 1, 2000 and  through  December  31,
13    2000,  the  1.25%  rate  on  motor  fuel  and  gasohol,  and,
14    beginning  January 1, 2002 and through December 31, 2006, the
15    1.25% rate on coal) on sales subject to  taxation  under  the
16    Retailers'  Occupation Tax Act and Service Occupation Tax Act
17    and paid into the County  and  Mass  Transit  District  Fund,
18    distribution  to  the  Regional  Transportation Authority tax
19    fund, created  pursuant  to  Section  4.03  of  the  Regional
20    Transportation  Authority  Act,  for deposit therein shall be
21    made based upon the retail sales occurring in a county having
22    more than  3,000,000  inhabitants.  The  remainder  shall  be
23    distributed   to   each  county  having  3,000,000  or  fewer
24    inhabitants based upon the retail  sales  occurring  in  each
25    such county.
26        For  the  purpose  of determining allocation to the local
27    government unit, a retail sale by a producer of coal or other
28    mineral mined in Illinois is a sale at retail  at  the  place
29    where  the  coal  or  other  mineral  mined  in  Illinois  is
30    extracted  from  the earth.  This paragraph does not apply to
31    coal or other mineral when it is delivered or shipped by  the
32    seller  to  the purchaser at a point outside Illinois so that
33    the sale is exempt under the United States Constitution as  a
 
                            -5-                LRB9207230REdv
 1    sale in interstate or foreign commerce.
 2        Of the money received from the 6.25% general use tax rate
 3    on  tangible  personal  property  which  is purchased outside
 4    Illinois at retail from a retailer and  which  is  titled  or
 5    registered  by any agency of this State's government and paid
 6    into the County and Mass Transit District  Fund,  the  amount
 7    for  which  Illinois  addresses  for  titling or registration
 8    purposes are given as being in each county having  more  than
 9    3,000,000  inhabitants shall be distributed into the Regional
10    Transportation  Authority  tax  fund,  created  pursuant   to
11    Section  4.03  of  the Regional Transportation Authority Act.
12    The remainder of the money paid  from  such  sales  shall  be
13    distributed  to each county based on sales for which Illinois
14    addresses for titling or registration purposes are  given  as
15    being  located  in  the  county.   Any  money  paid  into the
16    Regional Transportation  Authority  Occupation  and  Use  Tax
17    Replacement  Fund  from  the County and Mass Transit District
18    Fund prior to January 14, 1991, which has not  been  paid  to
19    the Authority prior to that date, shall be transferred to the
20    Regional Transportation Authority tax fund.
21        Whenever the Department determines that a refund of money
22    paid into the County and Mass Transit District Fund should be
23    made  to  a  claimant instead of issuing a credit memorandum,
24    the Department shall notify the State Comptroller, who  shall
25    cause  the order to be drawn for the amount specified, and to
26    the person named, in such notification from  the  Department.
27    Such  refund  shall be paid by the State Treasurer out of the
28    County and Mass Transit District Fund.
29        On or before the 25th day of  each  calendar  month,  the
30    Department  shall  prepare and certify to the Comptroller the
31    disbursement  of  stated  sums  of  money  to  the   Regional
32    Transportation  Authority and to named counties, the counties
33    to  be  those  entitled  to  distribution,   as   hereinabove
34    provided, of taxes or penalties paid to the Department during
 
                            -6-                LRB9207230REdv
 1    the  second  preceding calendar month.  The amount to be paid
 2    to the Regional  Transportation  Authority  and  each  county
 3    having  3,000,000  or  fewer  inhabitants shall be the amount
 4    (not including credit memoranda) collected during the  second
 5    preceding  calendar month by the Department and paid into the
 6    County and Mass Transit District Fund,  plus  an  amount  the
 7    Department  determines  is  necessary  to  offset any amounts
 8    which were erroneously paid to a different taxing  body,  and
 9    not  including  an amount equal to the amount of refunds made
10    during the second preceding calendar month by the Department,
11    and not including any amount which the Department  determines
12    is  necessary  to  offset any amounts which were payable to a
13    different taxing  body  but  were  erroneously  paid  to  the
14    Regional  Transportation Authority or county.  Within 10 days
15    after  receipt,  by  the  Comptroller,  of  the  disbursement
16    certification to the Regional  Transportation  Authority  and
17    counties,  provided  for  in  this Section to be given to the
18    Comptroller by the Department, the  Comptroller  shall  cause
19    the  orders  to  be  drawn  for  the  respective  amounts  in
20    accordance    with   the   directions   contained   in   such
21    certification.
22        When certifying the amount of a monthly  disbursement  to
23    the  Regional  Transportation  Authority or to a county under
24    this Section, the Department shall increase or decrease  that
25    amount  by an amount necessary to offset any misallocation of
26    previous disbursements.   The  offset  amount  shall  be  the
27    amount  erroneously  disbursed  within the 6 months preceding
28    the time a misallocation is discovered.
29        The  provisions  directing  the  distributions  from  the
30    special fund in the  State  Treasury  provided  for  in  this
31    Section  and  from  the Regional Transportation Authority tax
32    fund created by Section 4.03 of the  Regional  Transportation
33    Authority  Act shall constitute an irrevocable and continuing
34    appropriation of all amounts as provided  herein.  The  State
 
                            -7-                LRB9207230REdv
 1    Treasurer and State Comptroller are hereby authorized to make
 2    distributions as provided in this Section.
 3        In construing any development, redevelopment, annexation,
 4    preannexation  or  other  lawful agreement in effect prior to
 5    September 1, 1990, which describes or refers to receipts from
 6    a county or municipal retailers' occupation tax, use  tax  or
 7    service  occupation  tax  which  now  cannot be imposed, such
 8    description or reference  shall  be  deemed  to  include  the
 9    replacement  revenue  for  such  abolished taxes, distributed
10    from the County and  Mass  Transit  District  Fund  or  Local
11    Government Distributive Fund, as the case may be.
12    (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)

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

15        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
16        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
17    this  Section,  the tax imposed by this Act is at the rate of
18    6.25% of either the selling price or the fair  market  value,
19    if  any,  of  the  tangible  personal property.  In all cases
20    where property functionally used or consumed is the  same  as
21    the  property  that  was purchased at retail, then the tax is
22    imposed on the selling price of the property.  In  all  cases
23    where  property functionally used or consumed is a by-product
24    or waste product that  has  been  refined,  manufactured,  or
25    produced  from  property purchased at retail, then the tax is
26    imposed on the lower of the fair market value, if any, of the
27    specific property so used in this State  or  on  the  selling
28    price  of  the  property purchased at retail. For purposes of
29    this Section "fair market value" means  the  price  at  which
30    property  would  change  hands  between a willing buyer and a
31    willing seller, neither being under any compulsion to buy  or
32    sell  and  both  having  reasonable knowledge of the relevant
 
                            -8-                LRB9207230REdv
 1    facts. The fair market value shall be established by Illinois
 2    sales  by  the  taxpayer  of  the  same  property   as   that
 3    functionally  used or consumed, or if there are no such sales
 4    by the  taxpayer,  then  comparable  sales  or  purchases  of
 5    property of like kind and character in Illinois.
 6        Beginning  on July 1, 2000 and through December 31, 2000,
 7    with respect to motor fuel, as defined in Section 1.1 of  the
 8    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
 9    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
10        With respect to gasohol, the  tax  imposed  by  this  Act
11    applies  to  70%  of  the  proceeds of sales made on or after
12    January 1, 1990, and before July 1, 2003, and to 100% of  the
13    proceeds of sales made thereafter.
14        Beginning  on  January  1,  2002 and through December 31,
15    2006, with respect to coal for use in this State, the tax  is
16    imposed at the rate of 1.25%.
17        With  respect to food for human consumption that is to be
18    consumed off the  premises  where  it  is  sold  (other  than
19    alcoholic  beverages,  soft  drinks,  and  food that has been
20    prepared for  immediate  consumption)  and  prescription  and
21    nonprescription   medicines,   drugs,   medical   appliances,
22    modifications to a motor vehicle for the purpose of rendering
23    it  usable  by  a disabled person, and insulin, urine testing
24    materials, syringes, and needles used by diabetics, for human
25    use, the tax is imposed at the rate of 1%. For  the  purposes
26    of  this  Section, the term "soft drinks" means any complete,
27    finished,   ready-to-use,   non-alcoholic   drink,    whether
28    carbonated  or  not, including but not limited to soda water,
29    cola, fruit juice, vegetable juice, carbonated water, and all
30    other preparations commonly known as soft drinks of  whatever
31    kind  or  description  that  are  contained  in any closed or
32    sealed bottle, can, carton, or container, regardless of size.
33    "Soft drinks" does not include  coffee,  tea,  non-carbonated
34    water,  infant  formula,  milk or milk products as defined in
 
                            -9-                LRB9207230REdv
 1    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 2    containing 50% or more natural fruit or vegetable juice.
 3        Notwithstanding any other provisions of this  Act,  "food
 4    for human consumption that is to be consumed off the premises
 5    where  it  is  sold" includes all food sold through a vending
 6    machine, except  soft  drinks  and  food  products  that  are
 7    dispensed  hot  from  a  vending  machine,  regardless of the
 8    location of the vending machine.
 9        If the property  that  is  purchased  at  retail  from  a
10    retailer  is  acquired  outside  Illinois  and  used  outside
11    Illinois before being brought to Illinois for use here and is
12    taxable  under this Act, the "selling price" on which the tax
13    is computed shall be reduced by an amount that  represents  a
14    reasonable allowance for depreciation for the period of prior
15    out-of-state use.
16    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
17    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

18        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
19        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
20    aircraft,  and  trailers  that  are required to be registered
21    with an agency of  this  State,  each  retailer  required  or
22    authorized  to  collect the tax imposed by this Act shall pay
23    to the Department the amount of such tax (except as otherwise
24    provided) at the time when he is required to file his  return
25    for  the  period  during which such tax was collected, less a
26    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
27    after  January 1, 1990, or $5 per calendar year, whichever is
28    greater, which is  allowed  to  reimburse  the  retailer  for
29    expenses  incurred  in  collecting  the tax, keeping records,
30    preparing and filing returns, remitting the tax and supplying
31    data to the Department on request.  In the case of  retailers
32    who  report  and  pay the tax on a transaction by transaction
33    basis, as provided in this Section, such  discount  shall  be
 
                            -10-               LRB9207230REdv
 1    taken  with  each  such  tax  remittance instead of when such
 2    retailer files his periodic  return.   A  retailer  need  not
 3    remit  that  part  of  any tax collected by him to the extent
 4    that he is required to remit and does remit the  tax  imposed
 5    by  the  Retailers'  Occupation  Tax Act, with respect to the
 6    sale of the same property.
 7        Where such tangible personal property  is  sold  under  a
 8    conditional  sales  contract, or under any other form of sale
 9    wherein the payment of the principal sum, or a part  thereof,
10    is  extended  beyond  the  close  of the period for which the
11    return is filed, the retailer, in collecting the tax  (except
12    as to motor vehicles, watercraft, aircraft, and trailers that
13    are  required to be registered with an agency of this State),
14    may  collect  for  each  tax  return  period,  only  the  tax
15    applicable  to  that  part  of  the  selling  price  actually
16    received during such tax return period.
17        Except as provided in this  Section,  on  or  before  the
18    twentieth  day  of  each  calendar month, such retailer shall
19    file a return for the preceding calendar month.  Such  return
20    shall  be  filed  on  forms  prescribed by the Department and
21    shall  furnish  such  information  as  the   Department   may
22    reasonably require.
23        The  Department  may  require  returns  to  be filed on a
24    quarterly basis.  If so required, a return for each  calendar
25    quarter  shall be filed on or before the twentieth day of the
26    calendar month following the end of  such  calendar  quarter.
27    The taxpayer shall also file a return with the Department for
28    each  of the first two months of each calendar quarter, on or
29    before the twentieth day of  the  following  calendar  month,
30    stating:
31             1.  The name of the seller;
32             2.  The  address  of the principal place of business
33        from which he engages in the business of selling tangible
34        personal property at retail in this State;
 
                            -11-               LRB9207230REdv
 1             3.  The total amount of taxable receipts received by
 2        him during the preceding calendar  month  from  sales  of
 3        tangible  personal  property by him during such preceding
 4        calendar month, including receipts from charge  and  time
 5        sales, but less all deductions allowed by law;
 6             4.  The  amount  of credit provided in Section 2d of
 7        this Act;
 8             5.  The amount of tax due;
 9             5-5.  The signature of the taxpayer; and
10             6.  Such  other  reasonable   information   as   the
11        Department may require.
12        If a taxpayer fails to sign a return within 30 days after
13    the proper notice and demand for signature by the Department,
14    the  return shall be considered valid and any amount shown to
15    be due on the return shall be deemed assessed.
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 has
20    an  average  monthly  tax liability of $100,000 or more shall
21    make all payments required by  rules  of  the  Department  by
22    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 1,
26    2000, a taxpayer who has an annual tax liability of  $200,000
27    or  more  shall  make  all  payments required by rules of the
28    Department by electronic funds transfer.   The  term  "annual
29    tax liability" shall be the sum of the taxpayer's liabilities
30    under   this  Act,  and  under  all  other  State  and  local
31    occupation and use tax laws administered by  the  Department,
32    for   the  immediately  preceding  calendar  year.  The  term
33    "average  monthly  tax  liability"  means  the  sum  of   the
34    taxpayer's  liabilities  under  this Act, and under all other
 
                            -12-               LRB9207230REdv
 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 required
 7    to  make  payments  by  electronic  funds transfer shall make
 8    those payments for a minimum of one year beginning on October
 9    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        Before October 1, 2000, if the taxpayer's average monthly
21    tax   liability   to  the  Department  under  this  Act,  the
22    Retailers' Occupation Tax Act,  the  Service  Occupation  Tax
23    Act,  the  Service Use Tax Act was $10,000 or more during the
24    preceding 4 complete  calendar  quarters,  he  shall  file  a
25    return  with the Department each month by the 20th day of the
26    month  next  following  the  month  during  which  such   tax
27    liability   is  incurred  and  shall  make  payments  to  the
28    Department on or before the 7th, 15th, 22nd and last  day  of
29    the  month  during  which  such liability is incurred. On and
30    after October 1, 2000, if the taxpayer's average monthly  tax
31    liability  to  the  Department under this Act, the Retailers'
32    Occupation Tax Act, the Service Occupation Tax Act,  and  the
33    Service  Use Tax Act was $20,000 or more during the preceding
34    4 complete calendar quarters, he shall file a return with the
 
                            -13-               LRB9207230REdv
 1    Department each month by the  20th  day  of  the  month  next
 2    following  the  month  during  which  such  tax  liability is
 3    incurred and shall make  payment  to  the  Department  on  or
 4    before  the  7th, 15th, 22nd and last day of the month during
 5    which such liability is incurred. If the month  during  which
 6    such  tax  liability  is  incurred  began prior to January 1,
 7    1985, each payment shall be in an amount equal to 1/4 of  the
 8    taxpayer's actual liability for the month or an amount set by
 9    the  Department  not  to  exceed  1/4  of the average monthly
10    liability of the taxpayer to the Department for the preceding
11    4 complete calendar quarters (excluding the month of  highest
12    liability and the month of lowest liability in such 4 quarter
13    period).   If  the  month  during which such tax liability is
14    incurred begins on or after January 1,  1985,  and  prior  to
15    January  1, 1987, each payment shall be in an amount equal to
16    22.5% of the taxpayer's actual liability  for  the  month  or
17    27.5% of the taxpayer's liability for the same calendar month
18    of  the  preceding  year.  If the month during which such tax
19    liability is incurred begins on or after January 1, 1987, and
20    prior to January 1, 1988, each payment shall be in an  amount
21    equal  to  22.5%  of  the taxpayer's actual liability for the
22    month or 26.25% of the  taxpayer's  liability  for  the  same
23    calendar  month  of  the preceding year.  If the month during
24    which such tax liability  is  incurred  begins  on  or  after
25    January  1,  1988, and prior to January 1, 1989, or begins on
26    or after January 1, 1996, each payment shall be in an  amount
27    equal  to  22.5%  of  the taxpayer's actual liability for the
28    month or  25%  of  the  taxpayer's  liability  for  the  same
29    calendar  month  of  the preceding year.  If the month during
30    which such tax liability  is  incurred  begins  on  or  after
31    January  1,  1989, and prior to January 1, 1996, each payment
32    shall be in an amount equal to 22.5% of the taxpayer's actual
33    liability for the month or 25% of  the  taxpayer's  liability
34    for  the same calendar month of the preceding year or 100% of
 
                            -14-               LRB9207230REdv
 1    the taxpayer's  actual  liability  for  the  quarter  monthly
 2    reporting   period.   The  amount  of  such  quarter  monthly
 3    payments shall be credited against the final tax liability of
 4    the taxpayer's return for  that  month.   Before  October  1,
 5    2000,  once  applicable,  the  requirement  of  the making of
 6    quarter monthly payments to  the  Department  shall  continue
 7    until  such  taxpayer's  average  monthly  liability  to  the
 8    Department  during the preceding 4 complete calendar quarters
 9    (excluding the month of highest liability and  the  month  of
10    lowest   liability)  is  less  than  $9,000,  or  until  such
11    taxpayer's average monthly liability  to  the  Department  as
12    computed  for  each  calendar  quarter  of  the  4  preceding
13    complete  calendar  quarter  period  is  less  than  $10,000.
14    However,  if  a  taxpayer  can  show  the  Department  that a
15    substantial change in the taxpayer's  business  has  occurred
16    which  causes  the  taxpayer  to  anticipate that his average
17    monthly tax liability for the reasonably  foreseeable  future
18    will fall below the $10,000 threshold stated above, then such
19    taxpayer  may  petition  the  Department  for  change in such
20    taxpayer's reporting status. On and after  October  1,  2000,
21    once  applicable,  the  requirement  of the making of quarter
22    monthly payments to the Department shall continue until  such
23    taxpayer's average monthly liability to the Department during
24    the  preceding  4  complete  calendar quarters (excluding the
25    month of highest liability and the month of lowest liability)
26    is less than $19,000 or until such taxpayer's average monthly
27    liability to the Department as  computed  for  each  calendar
28    quarter  of  the 4 preceding complete calendar quarter period
29    is less than $20,000.  However, if a taxpayer  can  show  the
30    Department  that  a  substantial  change  in  the  taxpayer's
31    business has occurred which causes the taxpayer to anticipate
32    that  his  average  monthly  tax liability for the reasonably
33    foreseeable future will  fall  below  the  $20,000  threshold
34    stated  above, then such taxpayer may petition the Department
 
                            -15-               LRB9207230REdv
 1    for a change  in  such  taxpayer's  reporting  status.    The
 2    Department  shall  change  such  taxpayer's  reporting status
 3    unless it finds that such change is seasonal  in  nature  and
 4    not  likely  to  be  long  term.  If any such quarter monthly
 5    payment is not paid at the time or in the amount required  by
 6    this Section, then the taxpayer shall be liable for penalties
 7    and interest on the difference between the minimum amount due
 8    and  the  amount of such quarter monthly payment actually and
 9    timely paid, except insofar as the  taxpayer  has  previously
10    made  payments  for that month to the Department in excess of
11    the minimum payments  previously  due  as  provided  in  this
12    Section.    The  Department  shall  make reasonable rules and
13    regulations to govern the quarter monthly payment amount  and
14    quarter monthly payment dates for taxpayers who file on other
15    than a calendar monthly basis.
16        If  any such payment provided for in this Section exceeds
17    the taxpayer's liabilities under  this  Act,  the  Retailers'
18    Occupation  Tax  Act,  the Service Occupation Tax Act and the
19    Service Use Tax Act, as shown by an original monthly  return,
20    the   Department   shall  issue  to  the  taxpayer  a  credit
21    memorandum no later than 30 days after the date  of  payment,
22    which  memorandum  may  be  submitted  by the taxpayer to the
23    Department in payment of tax  liability  subsequently  to  be
24    remitted  by the taxpayer to the Department or be assigned by
25    the taxpayer to  a  similar  taxpayer  under  this  Act,  the
26    Retailers' Occupation Tax Act, the Service Occupation Tax Act
27    or  the  Service  Use  Tax Act, in accordance with reasonable
28    rules and regulations to be  prescribed  by  the  Department,
29    except  that  if  such excess payment is shown on an original
30    monthly return and is made after December 31, 1986, no credit
31    memorandum shall be issued, unless requested by the taxpayer.
32    If no such request is made,  the  taxpayer  may  credit  such
33    excess  payment  against  tax  liability  subsequently  to be
34    remitted by the taxpayer to the Department  under  this  Act,
 
                            -16-               LRB9207230REdv
 1    the Retailers' Occupation Tax Act, the Service Occupation Tax
 2    Act or the Service Use Tax Act, in accordance with reasonable
 3    rules  and  regulations prescribed by the Department.  If the
 4    Department subsequently determines that all or  any  part  of
 5    the  credit  taken  was not actually due to the taxpayer, the
 6    taxpayer's 2.1% or 1.75% vendor's discount shall  be  reduced
 7    by  2.1%  or 1.75% of the difference between the credit taken
 8    and that actually due, and the taxpayer shall be  liable  for
 9    penalties and interest on such difference.
10        If  the  retailer is otherwise required to file a monthly
11    return and if the retailer's average monthly tax liability to
12    the Department does  not  exceed  $200,  the  Department  may
13    authorize  his returns to be filed on a quarter annual basis,
14    with the return for January, February, and March of  a  given
15    year  being due by April 20 of such year; with the return for
16    April, May and June of a given year being due by July  20  of
17    such  year; with the return for July, August and September of
18    a given year being due by October 20 of such year,  and  with
19    the return for October, November and December of a given year
20    being due by January 20 of the following year.
21        If  the  retailer is otherwise required to file a monthly
22    or quarterly return and if the retailer's average monthly tax
23    liability  to  the  Department  does  not  exceed  $50,   the
24    Department may authorize his returns to be filed on an annual
25    basis,  with the return for a given year being due by January
26    20 of the following year.
27        Such quarter annual and annual returns, as  to  form  and
28    substance,  shall  be  subject  to  the  same requirements as
29    monthly returns.
30        Notwithstanding  any  other   provision   in   this   Act
31    concerning  the  time  within  which  a retailer may file his
32    return, in the case of any retailer who ceases to engage in a
33    kind of business  which  makes  him  responsible  for  filing
34    returns  under  this  Act,  such  retailer shall file a final
 
                            -17-               LRB9207230REdv
 1    return under this Act with the Department not more  than  one
 2    month after discontinuing such business.
 3        In  addition, with respect to motor vehicles, watercraft,
 4    aircraft, and trailers that are  required  to  be  registered
 5    with  an  agency  of  this State, every retailer selling this
 6    kind of tangible  personal  property  shall  file,  with  the
 7    Department,  upon a form to be prescribed and supplied by the
 8    Department, a separate return for each such item of  tangible
 9    personal  property  which the retailer sells, except that if,
10    in  the  same  transaction,  (i)  a  retailer  of   aircraft,
11    watercraft,  motor  vehicles  or trailers transfers more than
12    one aircraft, watercraft, motor vehicle or trailer to another
13    aircraft, watercraft, motor vehicle or trailer  retailer  for
14    the  purpose  of  resale  or  (ii)  a  retailer  of aircraft,
15    watercraft, motor vehicles, or trailers transfers  more  than
16    one  aircraft,  watercraft,  motor  vehicle,  or trailer to a
17    purchaser for use as a qualifying rolling stock  as  provided
18    in  Section 3-55 of this Act, then that seller may report the
19    transfer of all the aircraft, watercraft, motor  vehicles  or
20    trailers  involved  in  that transaction to the Department on
21    the same uniform invoice-transaction reporting  return  form.
22    For  purposes  of this Section, "watercraft" means a Class 2,
23    Class 3, or Class 4 watercraft as defined in Section  3-2  of
24    the  Boat Registration and Safety Act, a personal watercraft,
25    or any boat equipped with an inboard motor.
26        The transaction reporting return in  the  case  of  motor
27    vehicles  or trailers that are required to be registered with
28    an agency of this State, shall be the same  document  as  the
29    Uniform  Invoice referred to in Section 5-402 of the Illinois
30    Vehicle Code and must  show  the  name  and  address  of  the
31    seller;  the name and address of the purchaser; the amount of
32    the  selling  price  including  the  amount  allowed  by  the
33    retailer for traded-in property, if any; the  amount  allowed
34    by the retailer for the traded-in tangible personal property,
 
                            -18-               LRB9207230REdv
 1    if  any,  to the extent to which Section 2 of this Act allows
 2    an exemption for the value of traded-in property; the balance
 3    payable after deducting  such  trade-in  allowance  from  the
 4    total  selling price; the amount of tax due from the retailer
 5    with respect to such transaction; the amount of tax collected
 6    from the purchaser by the retailer on  such  transaction  (or
 7    satisfactory  evidence  that  such  tax  is  not  due in that
 8    particular instance, if that is claimed to be the fact);  the
 9    place  and  date  of the sale; a sufficient identification of
10    the property sold; such other information as is  required  in
11    Section  5-402  of  the Illinois Vehicle Code, and such other
12    information as the Department may reasonably require.
13        The  transaction  reporting  return  in   the   case   of
14    watercraft and aircraft must show the name and address of the
15    seller;  the name and address of the purchaser; the amount of
16    the  selling  price  including  the  amount  allowed  by  the
17    retailer for traded-in property, if any; the  amount  allowed
18    by the retailer for the traded-in tangible personal property,
19    if  any,  to the extent to which Section 2 of this Act allows
20    an exemption for the value of traded-in property; the balance
21    payable after deducting  such  trade-in  allowance  from  the
22    total  selling price; the amount of tax due from the retailer
23    with respect to such transaction; the amount of tax collected
24    from the purchaser by the retailer on  such  transaction  (or
25    satisfactory  evidence  that  such  tax  is  not  due in that
26    particular instance, if that is claimed to be the fact);  the
27    place  and  date  of the sale, a sufficient identification of
28    the  property  sold,  and  such  other  information  as   the
29    Department may reasonably require.
30        Such  transaction  reporting  return  shall  be filed not
31    later than 20 days after the date of  delivery  of  the  item
32    that  is  being sold, but may be filed by the retailer at any
33    time  sooner  than  that  if  he  chooses  to  do  so.    The
34    transaction  reporting  return and tax remittance or proof of
 
                            -19-               LRB9207230REdv
 1    exemption from the tax that is imposed by  this  Act  may  be
 2    transmitted to the Department by way of the State agency with
 3    which,  or  State  officer  with  whom, the tangible personal
 4    property  must  be  titled  or  registered  (if  titling   or
 5    registration  is  required) if the Department and such agency
 6    or State officer determine that this procedure will  expedite
 7    the processing of applications for title or registration.
 8        With each such transaction reporting return, the retailer
 9    shall  remit  the  proper  amount of tax due (or shall submit
10    satisfactory evidence that the sale is not taxable if that is
11    the case), to the Department or  its  agents,  whereupon  the
12    Department  shall  issue,  in  the  purchaser's  name,  a tax
13    receipt (or a certificate of exemption if the  Department  is
14    satisfied  that the particular sale is tax exempt) which such
15    purchaser may submit to  the  agency  with  which,  or  State
16    officer  with  whom,  he  must title or register the tangible
17    personal  property  that   is   involved   (if   titling   or
18    registration  is  required)  in  support  of such purchaser's
19    application for an Illinois certificate or other evidence  of
20    title or registration to such tangible personal property.
21        No  retailer's failure or refusal to remit tax under this
22    Act precludes a user, who has paid  the  proper  tax  to  the
23    retailer,  from  obtaining  his certificate of title or other
24    evidence of title or registration (if titling or registration
25    is required) upon satisfying the Department  that  such  user
26    has paid the proper tax (if tax is due) to the retailer.  The
27    Department  shall  adopt  appropriate  rules to carry out the
28    mandate of this paragraph.
29        If the user who would otherwise pay tax to  the  retailer
30    wants  the transaction reporting return filed and the payment
31    of tax or proof of exemption made to  the  Department  before
32    the  retailer  is willing to take these actions and such user
33    has not paid the tax to the retailer, such user  may  certify
34    to  the fact of such delay by the retailer, and may (upon the
 
                            -20-               LRB9207230REdv
 1    Department   being   satisfied   of   the   truth   of   such
 2    certification)  transmit  the  information  required  by  the
 3    transaction reporting return and the remittance  for  tax  or
 4    proof  of exemption directly to the Department and obtain his
 5    tax receipt or exemption determination, in  which  event  the
 6    transaction  reporting  return  and  tax remittance (if a tax
 7    payment was required) shall be credited by the Department  to
 8    the  proper  retailer's  account  with  the  Department,  but
 9    without  the  2.1%  or  1.75%  discount  provided for in this
10    Section being allowed.  When the user pays the  tax  directly
11    to  the  Department,  he shall pay the tax in the same amount
12    and in the same form in which it would be remitted if the tax
13    had been remitted to the Department by the retailer.
14        Where a retailer collects the tax  with  respect  to  the
15    selling  price  of  tangible personal property which he sells
16    and the purchaser thereafter returns such  tangible  personal
17    property  and  the retailer refunds the selling price thereof
18    to the purchaser, such retailer shall  also  refund,  to  the
19    purchaser,  the  tax  so  collected  from the purchaser. When
20    filing his return for the period in which he refunds such tax
21    to the purchaser, the retailer may deduct the amount  of  the
22    tax  so  refunded  by him to the purchaser from any other use
23    tax which such retailer may be required to pay  or  remit  to
24    the Department, as shown by such return, if the amount of the
25    tax  to be deducted was previously remitted to the Department
26    by  such  retailer.   If  the  retailer  has  not  previously
27    remitted the amount of such tax  to  the  Department,  he  is
28    entitled  to  no deduction under this Act upon refunding such
29    tax to the purchaser.
30        Any retailer filing a return  under  this  Section  shall
31    also  include  (for  the  purpose  of paying tax thereon) the
32    total tax covered by such return upon the  selling  price  of
33    tangible  personal property purchased by him at retail from a
34    retailer, but as to which the tax imposed by this Act was not
 
                            -21-               LRB9207230REdv
 1    collected from the retailer  filing  such  return,  and  such
 2    retailer shall remit the amount of such tax to the Department
 3    when filing such return.
 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 retailers, who are required to
 7    file   returns   hereunder  and  also  under  the  Retailers'
 8    Occupation Tax Act, to furnish  all  the  return  information
 9    required by both Acts on the one form.
10        Where  the retailer has more than one business registered
11    with the Department under separate  registration  under  this
12    Act,  such retailer may not file each return that is due as a
13    single return covering all such  registered  businesses,  but
14    shall   file   separate  returns  for  each  such  registered
15    business.
16        Beginning January 1,  1990,  each  month  the  Department
17    shall  pay  into the State and Local Sales Tax Reform Fund, a
18    special fund in the State Treasury which is  hereby  created,
19    the  net revenue realized for the preceding month from the 1%
20    tax on sales of food for human consumption  which  is  to  be
21    consumed  off  the  premises  where  it  is  sold (other than
22    alcoholic beverages, soft drinks  and  food  which  has  been
23    prepared  for  immediate  consumption)  and  prescription and
24    nonprescription  medicines,  drugs,  medical  appliances  and
25    insulin, urine testing materials, syringes and  needles  used
26    by diabetics.
27        Beginning  January  1,  1990,  each  month the Department
28    shall pay into the County and Mass Transit District  Fund  4%
29    of  the net revenue realized for the preceding month from the
30    6.25% general rate on the selling price of tangible  personal
31    property which is purchased outside Illinois at retail from a
32    retailer  and  which  is titled or registered by an agency of
33    this State's government.
34        Beginning January 1,  1990,  each  month  the  Department
 
                            -22-               LRB9207230REdv
 1    shall  pay  into the State and Local Sales Tax Reform Fund, a
 2    special fund in the State Treasury, 20% of  the  net  revenue
 3    realized  for the preceding month from the 6.25% general rate
 4    on the selling price of  tangible  personal  property,  other
 5    than  tangible  personal  property which is purchased outside
 6    Illinois at retail from a retailer and  which  is  titled  or
 7    registered by an agency of this State's government.
 8        Beginning August 1, 2000, each month the Department shall
 9    pay  into  the  State and Local Sales Tax Reform Fund 100% of
10    the net revenue realized for the  preceding  month  from  the
11    1.25% rate on the selling price of motor fuel and gasohol.
12        Beginning  February  1,  2002,  each month the Department
13    shall pay into the State and Local Sales Tax Reform Fund 100%
14    of the net revenue realized for the preceding month from  the
15    1.25%  rate  on  the  selling  price  of coal for use in this
16    State.
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 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        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
 
                            -23-               LRB9207230REdv
 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
 
                            -24-               LRB9207230REdv
 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.
 
                            -25-               LRB9207230REdv
 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
29        Act, 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
 
                            -26-               LRB9207230REdv
 1    the  State Treasurer in the respective month under subsection
 2    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 3    Authority  Act,  plus cumulative deficiencies in the deposits
 4    required under this Section for previous  months  and  years,
 5    shall be deposited into the McCormick Place Expansion Project
 6    Fund,  until  the  full amount requested for the fiscal year,
 7    but not in excess of the amount  specified  above  as  "Total
 8    Deposit", has been deposited.
 9        Subject  to  payment  of  amounts into the Build Illinois
10    Fund and the McCormick Place Expansion Project Fund  pursuant
11    to  the  preceding  paragraphs  or  in  any amendment thereto
12    hereafter enacted, each month the Department shall  pay  into
13    the Local Government Distributive Fund .4% of the net revenue
14    realized for the preceding month from the 5% general rate, or
15    .4%  of  80%  of  the  net revenue realized for the preceding
16    month from the 6.25% general rate, as the case may be, on the
17    selling price of  tangible  personal  property  which  amount
18    shall,  subject  to appropriation, be distributed as provided
19    in Section 2 of the State Revenue Sharing Act. No payments or
20    distributions pursuant to this paragraph shall be made if the
21    tax imposed  by  this  Act  on  photoprocessing  products  is
22    declared  unconstitutional,  or if the proceeds from such tax
23    are unavailable for distribution because of litigation.
24        Subject to payment of amounts  into  the  Build  Illinois
25    Fund,  the  McCormick  Place  Expansion Project Fund, and the
26    Local Government Distributive Fund pursuant to the  preceding
27    paragraphs  or  in  any amendments thereto hereafter enacted,
28    beginning July 1, 1993, the Department shall each  month  pay
29    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
30    revenue realized for  the  preceding  month  from  the  6.25%
31    general  rate  on  the  selling  price  of  tangible personal
32    property.
33        Of the remainder of the moneys received by the Department
34    pursuant to this Act, 75% thereof  shall  be  paid  into  the
 
                            -27-               LRB9207230REdv
 1    State Treasury and 25% shall be reserved in a special account
 2    and  used  only for the transfer to the Common School Fund as
 3    part of the monthly transfer from the General Revenue Fund in
 4    accordance with Section 8a of the State Finance Act.
 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,  manufacturers,
18    importers  and  wholesalers whose products are sold at retail
19    in Illinois by numerous retailers, and who wish to do so, may
20    assume the responsibility for accounting and  paying  to  the
21    Department  all  tax  accruing under this Act with respect to
22    such sales, if the retailers who are  affected  do  not  make
23    written objection to the Department to this arrangement.
24    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
25    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
26    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
27    eff. 1-1-01; revised 8-30-00.)

28        Section  15.   The  Service  Use  Tax  Act  is amended by
29    changing Sections 3-10 and 9 as follows:

30        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
31        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
32    this  Section,  the tax imposed by this Act is at the rate of
 
                            -28-               LRB9207230REdv
 1    6.25% of the selling  price  of  tangible  personal  property
 2    transferred  as  an incident to the sale of service, but, for
 3    the purpose of computing this tax,  in  no  event  shall  the
 4    selling  price be less than the cost price of the property to
 5    the serviceman.
 6        Beginning on July 1, 2000 and through December 31,  2000,
 7    with  respect to motor fuel, as defined in Section 1.1 of the
 8    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 9    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
10        With  respect  to gasohol, as defined in the Use Tax Act,
11    the tax imposed by this Act applies to  70%  of  the  selling
12    price  of  property transferred as an incident to the sale of
13    service on or after January 1, 1990, and before July 1, 2003,
14    and to 100% of the selling price thereafter.
15        Beginning on January 1, 2002  and  through  December  31,
16    2006,  with respect to coal for use in this State, the tax is
17    imposed at the rate of 1.25%.
18        At the election of any  registered  serviceman  made  for
19    each  fiscal  year,  sales  of service in which the aggregate
20    annual cost price of tangible personal  property  transferred
21    as  an  incident to the sales of service is less than 35%, or
22    75% in the case of servicemen transferring prescription drugs
23    or servicemen engaged in  graphic  arts  production,  of  the
24    aggregate  annual  total  gross  receipts  from  all sales of
25    service, the tax imposed by this Act shall be  based  on  the
26    serviceman's  cost  price  of  the tangible personal property
27    transferred as an incident to the sale of those services.
28        The tax shall be imposed  at  the  rate  of  1%  on  food
29    prepared  for  immediate consumption and transferred incident
30    to a sale of service subject  to  this  Act  or  the  Service
31    Occupation  Tax  Act by an entity licensed under the Hospital
32    Licensing Act, the Nursing Home Care Act, or the  Child  Care
33    Act of 1969.  The tax shall also be imposed at the rate of 1%
34    on  food for human consumption that is to be consumed off the
 
                            -29-               LRB9207230REdv
 1    premises where it is sold (other  than  alcoholic  beverages,
 2    soft  drinks,  and  food that has been prepared for immediate
 3    consumption and is not otherwise included in this  paragraph)
 4    and   prescription   and  nonprescription  medicines,  drugs,
 5    medical appliances, modifications to a motor vehicle for  the
 6    purpose  of  rendering  it  usable  by a disabled person, and
 7    insulin, urine testing materials, syringes, and needles  used
 8    by  diabetics,  for  human  use.  For  the  purposes  of this
 9    Section, the term "soft drinks" means any complete, finished,
10    ready-to-use, non-alcoholic drink, whether carbonated or not,
11    including but not limited to soda water, cola,  fruit  juice,
12    vegetable juice, carbonated water, and all other preparations
13    commonly known as soft drinks of whatever kind or description
14    that  are  contained  in  any  closed  or sealed bottle, can,
15    carton, or container, regardless of size.  "Soft drinks" does
16    not  include  coffee,  tea,  non-carbonated   water,   infant
17    formula,  milk  or  milk  products  as defined in the Grade A
18    Pasteurized Milk and Milk Products Act, or drinks  containing
19    50% or more natural fruit or vegetable juice.
20        Notwithstanding  any  other provisions of this Act, "food
21    for human consumption that is to be consumed off the premises
22    where it is sold" includes all food sold  through  a  vending
23    machine,  except  soft  drinks  and  food  products  that are
24    dispensed hot from  a  vending  machine,  regardless  of  the
25    location of the vending machine.
26        If  the  property  that  is acquired from a serviceman is
27    acquired outside Illinois and used  outside  Illinois  before
28    being  brought  to Illinois for use here and is taxable under
29    this Act, the "selling price" on which the  tax  is  computed
30    shall  be  reduced  by an amount that represents a reasonable
31    allowance  for  depreciation  for   the   period   of   prior
32    out-of-state use.
33    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
34    91-51, eff.  6-30-99;  91-541,  eff.  8-13-99;  91-872,  eff.
 
                            -30-               LRB9207230REdv
 1    7-1-00.)

 2        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
 3        Sec.   9.  Each  serviceman  required  or  authorized  to
 4    collect the tax herein imposed shall pay  to  the  Department
 5    the  amount of such tax (except as otherwise provided) at the
 6    time when he is required to file his return  for  the  period
 7    during  which such tax was collected, less a discount of 2.1%
 8    prior to January 1, 1990 and 1.75% on and  after  January  1,
 9    1990, or $5 per calendar year, whichever is greater, which is
10    allowed  to reimburse the serviceman for expenses incurred in
11    collecting the tax, keeping  records,  preparing  and  filing
12    returns,   remitting  the  tax  and  supplying  data  to  the
13    Department on request. A serviceman need not remit that  part
14    of any tax collected by him to the extent that he is required
15    to pay and does pay the tax imposed by the Service Occupation
16    Tax  Act  with  respect  to his sale of service involving the
17    incidental transfer by him of the same property.
18        Except as provided hereinafter in  this  Section,  on  or
19    before  the  twentieth  day  of  each  calendar  month,  such
20    serviceman  shall  file  a  return for the preceding calendar
21    month in accordance with reasonable Rules and Regulations  to
22    be  promulgated by the Department. Such return shall be filed
23    on a form prescribed by the Department and shall contain such
24    information as the Department may reasonably require.
25        The Department may require  returns  to  be  filed  on  a
26    quarterly  basis.  If so required, a return for each calendar
27    quarter shall be filed on or before the twentieth day of  the
28    calendar  month  following  the end of such calendar quarter.
29    The taxpayer shall also file a return with the Department for
30    each of the first two months of each calendar quarter, on  or
31    before  the  twentieth  day  of the following calendar month,
32    stating:
33             1.  The name of the seller;
 
                            -31-               LRB9207230REdv
 1             2.  The address of the principal place  of  business
 2        from which he engages in business as a serviceman in this
 3        State;
 4             3.  The total amount of taxable receipts received by
 5        him   during  the  preceding  calendar  month,  including
 6        receipts  from  charge  and  time  sales,  but  less  all
 7        deductions allowed by law;
 8             4.  The amount of credit provided in Section  2d  of
 9        this Act;
10             5.  The amount of tax due;
11             5-5.  The signature of the taxpayer; and
12             6.  Such   other   reasonable   information  as  the
13        Department may require.
14        If a taxpayer fails to sign a return within 30 days after
15    the proper notice and demand for signature by the Department,
16    the return shall be considered valid and any amount shown  to
17    be due on the return shall be deemed assessed.
18        Beginning  October 1, 1993, a taxpayer who has an average
19    monthly tax liability of $150,000  or  more  shall  make  all
20    payments  required  by  rules of the Department by electronic
21    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
22    has  an  average  monthly  tax  liability of $100,000 or more
23    shall make all payments required by rules of  the  Department
24    by  electronic  funds transfer.  Beginning October 1, 1995, a
25    taxpayer who has an average monthly tax liability of  $50,000
26    or  more  shall  make  all  payments required by rules of the
27    Department by electronic funds transfer. Beginning October 1,
28    2000, a taxpayer who has an annual tax liability of  $200,000
29    or  more  shall  make  all  payments required by rules of the
30    Department by electronic funds transfer.   The  term  "annual
31    tax liability" shall be the sum of the taxpayer's liabilities
32    under   this  Act,  and  under  all  other  State  and  local
33    occupation and use tax laws administered by  the  Department,
34    for  the  immediately  preceding  calendar  year.    The term
 
                            -32-               LRB9207230REdv
 1    "average  monthly  tax  liability"  means  the  sum  of   the
 2    taxpayer's  liabilities  under  this Act, and under all other
 3    State and local occupation and use tax laws  administered  by
 4    the  Department,  for the immediately preceding calendar year
 5    divided by 12.
 6        Before August 1 of  each  year  beginning  in  1993,  the
 7    Department  shall  notify  all  taxpayers  required  to  make
 8    payments by electronic funds transfer. All taxpayers required
 9    to  make  payments  by  electronic  funds transfer shall make
10    those payments for a minimum of one year beginning on October
11    1.
12        Any taxpayer not required to make payments by  electronic
13    funds transfer may make payments by electronic funds transfer
14    with the permission of the Department.
15        All  taxpayers  required  to  make  payment by electronic
16    funds transfer and any taxpayers  authorized  to  voluntarily
17    make  payments  by electronic funds transfer shall make those
18    payments in the manner authorized by the Department.
19        The Department shall adopt such rules as are necessary to
20    effectuate a program of electronic  funds  transfer  and  the
21    requirements of this Section.
22        If the serviceman is otherwise required to file a monthly
23    return  and if the serviceman's average monthly tax liability
24    to the Department does not exceed $200,  the  Department  may
25    authorize  his returns to be filed on a quarter annual basis,
26    with the return for January, February and March  of  a  given
27    year  being due by April 20 of such year; with the return for
28    April, May and June of a given year being due by July  20  of
29    such  year; with the return for July, August and September of
30    a given year being due by October 20 of such year,  and  with
31    the return for October, November and December of a given year
32    being due by January 20 of the following year.
33        If the serviceman is otherwise required to file a monthly
34    or  quarterly  return and if the serviceman's average monthly
 
                            -33-               LRB9207230REdv
 1    tax liability to the Department  does  not  exceed  $50,  the
 2    Department may authorize his returns to be filed on an annual
 3    basis,  with the return for a given year being due by January
 4    20 of the following year.
 5        Such quarter annual and annual returns, as  to  form  and
 6    substance,  shall  be  subject  to  the  same requirements as
 7    monthly returns.
 8        Notwithstanding  any  other   provision   in   this   Act
 9    concerning  the  time  within which a serviceman may file his
10    return, in the case of any serviceman who ceases to engage in
11    a kind of business which makes  him  responsible  for  filing
12    returns  under  this  Act, such serviceman shall file a final
13    return under this Act with the Department  not  more  than  1
14    month after discontinuing such business.
15        Where  a  serviceman collects the tax with respect to the
16    selling price of property which he sells  and  the  purchaser
17    thereafter  returns  such property and the serviceman refunds
18    the selling price thereof to the purchaser,  such  serviceman
19    shall  also  refund,  to  the purchaser, the tax so collected
20    from the purchaser. When filing his return for the period  in
21    which  he  refunds  such tax to the purchaser, the serviceman
22    may deduct the amount of the tax so refunded by  him  to  the
23    purchaser  from any other Service Use Tax, Service Occupation
24    Tax,  retailers'  occupation  tax  or  use  tax  which   such
25    serviceman may be required to pay or remit to the Department,
26    as  shown by such return, provided that the amount of the tax
27    to be deducted shall previously have  been  remitted  to  the
28    Department  by  such  serviceman. If the serviceman shall not
29    previously have remitted  the  amount  of  such  tax  to  the
30    Department,  he  shall  be entitled to no deduction hereunder
31    upon refunding such tax to the purchaser.
32        Any serviceman  filing  a  return  hereunder  shall  also
33    include  the  total  tax  upon  the selling price of tangible
34    personal property purchased for use by him as an incident  to
 
                            -34-               LRB9207230REdv
 1    a sale of service, and such serviceman shall remit the amount
 2    of such tax to the Department when filing such return.
 3        If  experience  indicates  such action to be practicable,
 4    the Department may prescribe and  furnish  a  combination  or
 5    joint  return  which will enable servicemen, who are required
 6    to  file  returns  hereunder  and  also  under  the   Service
 7    Occupation  Tax  Act,  to  furnish all the return information
 8    required by both Acts on the one form.
 9        Where  the  serviceman  has  more   than   one   business
10    registered  with  the  Department under separate registration
11    hereunder, such serviceman shall 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        Beginning January 1,  1990,  each  month  the  Department
16    shall pay into the State and Local Tax Reform Fund, a special
17    fund  in the State Treasury, the net revenue realized for the
18    preceding month from the 1% tax on sales of  food  for  human
19    consumption which is to be consumed off the premises where it
20    is sold (other than alcoholic beverages, soft drinks and food
21    which  has  been  prepared  for  immediate  consumption)  and
22    prescription  and  nonprescription  medicines, drugs, medical
23    appliances and insulin, urine testing materials, syringes and
24    needles used by diabetics.
25        Beginning January 1,  1990,  each  month  the  Department
26    shall  pay into the State and Local Sales Tax Reform Fund 20%
27    of the net revenue realized for the preceding month from  the
28    6.25%   general   rate  on  transfers  of  tangible  personal
29    property, other than  tangible  personal  property  which  is
30    purchased  outside  Illinois  at  retail  from a retailer and
31    which is titled or registered by an agency  of  this  State's
32    government.
33        Beginning August 1, 2000, each month the Department shall
34    pay  into  the  State and Local Sales Tax Reform Fund 100% of
 
                            -35-               LRB9207230REdv
 1    the net revenue realized for the  preceding  month  from  the
 2    1.25% rate on the selling price of motor fuel and gasohol.
 3        Beginning  February  1,  2002,  each month the Department
 4    shall pay into the State and Local Sales Tax Reform Fund 100%
 5    of the net revenue realized for the preceding month from  the
 6    1.25%  rate  on  the  selling  price  of coal for use in this
 7    State.
 8        Of the remainder of the moneys received by the Department
 9    pursuant to this Act, (a)  1.75% thereof shall be  paid  into
10    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
11    and on and after July 1, 1989, 3.8% thereof  shall  be   paid
12    into  the  Build Illinois Fund; provided, however, that if in
13    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
14    as the case may be, of the moneys received by the  Department
15    and required to be paid into the Build Illinois Fund pursuant
16    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
17    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
18    Section 9 of the Service Occupation Tax Act, such Acts  being
19    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
20    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
21    called  the  "Tax Act Amount", and (2) the amount transferred
22    to the Build Illinois Fund from the State and Local Sales Tax
23    Reform Fund shall be less than the Annual  Specified   Amount
24    (as  defined  in  Section  3 of the Retailers' Occupation Tax
25    Act), an amount equal to the difference shall be  immediately
26    paid  into the Build Illinois Fund from other moneys received
27    by the Department pursuant  to  the  Tax  Acts;  and  further
28    provided,  that  if on the last business day of any month the
29    sum of (1) the Tax Act Amount required to be  deposited  into
30    the  Build  Illinois  Bond Account in the Build Illinois Fund
31    during such month and (2) the amount transferred during  such
32    month  to  the  Build  Illinois Fund from the State and Local
33    Sales Tax Reform Fund shall have been less than 1/12  of  the
34    Annual  Specified  Amount,  an amount equal to the difference
 
                            -36-               LRB9207230REdv
 1    shall be immediately paid into the Build Illinois  Fund  from
 2    other  moneys  received by the Department pursuant to the Tax
 3    Acts; and, further provided,  that  in  no  event  shall  the
 4    payments  required  under  the  preceding  proviso  result in
 5    aggregate payments into the Build Illinois Fund  pursuant  to
 6    this  clause (b) for any fiscal year in excess of the greater
 7    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 8    for such fiscal year; and, further provided, that the amounts
 9    payable into the Build Illinois Fund under  this  clause  (b)
10    shall be payable only until such time as the aggregate amount
11    on  deposit  under each trust indenture securing Bonds issued
12    and outstanding pursuant to the Build Illinois  Bond  Act  is
13    sufficient, taking into account any future investment income,
14    to  fully provide, in accordance with such indenture, for the
15    defeasance of or the payment of the principal of, premium, if
16    any, and interest on the Bonds secured by such indenture  and
17    on  any  Bonds  expected to be issued thereafter and all fees
18    and costs payable with respect thereto, all as  certified  by
19    the  Director  of  the  Bureau of the Budget.  If on the last
20    business day of any month  in  which  Bonds  are  outstanding
21    pursuant to the Build Illinois Bond Act, the aggregate of the
22    moneys  deposited  in  the Build Illinois Bond Account in the
23    Build Illinois Fund in such month  shall  be  less  than  the
24    amount  required  to  be  transferred  in such month from the
25    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
26    Retirement  and  Interest  Fund pursuant to Section 13 of the
27    Build Illinois Bond Act, an amount equal to  such  deficiency
28    shall  be  immediately paid from other moneys received by the
29    Department pursuant to the Tax Acts  to  the  Build  Illinois
30    Fund;  provided,  however, that any amounts paid to the Build
31    Illinois Fund in any fiscal year pursuant  to  this  sentence
32    shall be deemed to constitute payments pursuant to clause (b)
33    of  the  preceding  sentence  and  shall  reduce  the  amount
34    otherwise payable for such fiscal year pursuant to clause (b)
 
                            -37-               LRB9207230REdv
 1    of  the  preceding  sentence.   The  moneys  received  by the
 2    Department pursuant to this Act and required to be  deposited
 3    into the Build Illinois Fund are subject to the pledge, claim
 4    and charge set forth in Section 12 of the Build Illinois Bond
 5    Act.
 6        Subject  to  payment  of  amounts into the Build Illinois
 7    Fund as  provided  in  the  preceding  paragraph  or  in  any
 8    amendment  thereto hereafter enacted, the following specified
 9    monthly  installment  of  the   amount   requested   in   the
10    certificate  of  the  Chairman  of  the Metropolitan Pier and
11    Exposition Authority provided  under  Section  8.25f  of  the
12    State  Finance  Act, but not in excess of the sums designated
13    as "Total Deposit", shall be deposited in the aggregate  from
14    collections  under Section 9 of the Use Tax Act, Section 9 of
15    the Service Use Tax Act, Section 9 of the Service  Occupation
16    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
17    into the  McCormick  Place  Expansion  Project  Fund  in  the
18    specified fiscal years.
19          Fiscal Year                     Total Deposit
20             1993                                   $0
21             1994                           53,000,000
22             1995                           58,000,000
23             1996                           61,000,000
24             1997                           64,000,000
25             1998                           68,000,000
26             1999                           71,000,000
27             2000                           75,000,000
28             2001                           80,000,000
29             2002                           84,000,000
30             2003                           89,000,000
31             2004                           93,000,000
32             2005                           97,000,000
33             2006                           102,000,000
34             2007                           108,000,000
 
                            -38-               LRB9207230REdv
 1             2008                           115,000,000
 2             2009                           120,000,000
 3             2010                           126,000,000
 4             2011                           132,000,000
 5             2012                           138,000,000
 6             2013 and                       145,000,000
 7        each fiscal year
 8        thereafter that bonds
 9        are outstanding under
10        Section 13.2 of the
11        Metropolitan Pier and
12        Exposition Authority Act,
13        but not after fiscal year 2029.
14        Beginning  July 20, 1993 and in each month of each fiscal
15    year thereafter, one-eighth of the amount  requested  in  the
16    certificate  of  the  Chairman  of  the Metropolitan Pier and
17    Exposition Authority for that fiscal year,  less  the  amount
18    deposited  into the McCormick Place Expansion Project Fund by
19    the State Treasurer in the respective month under  subsection
20    (g)  of  Section  13  of the Metropolitan Pier and Exposition
21    Authority Act, plus cumulative deficiencies in  the  deposits
22    required  under  this  Section for previous months and years,
23    shall be deposited into the McCormick Place Expansion Project
24    Fund, until the full amount requested for  the  fiscal  year,
25    but  not  in  excess  of the amount specified above as "Total
26    Deposit", has been deposited.
27        Subject to payment of amounts  into  the  Build  Illinois
28    Fund  and the McCormick Place Expansion Project Fund pursuant
29    to the preceding  paragraphs  or  in  any  amendment  thereto
30    hereafter  enacted,  each month the Department shall pay into
31    the Local  Government  Distributive  Fund  0.4%  of  the  net
32    revenue  realized for the preceding month from the 5% general
33    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
34    preceding  month from the 6.25% general rate, as the case may
 
                            -39-               LRB9207230REdv
 1    be, on the selling price of tangible personal property  which
 2    amount  shall,  subject  to  appropriation, be distributed as
 3    provided in Section 2 of the State Revenue  Sharing  Act.  No
 4    payments or distributions pursuant to this paragraph shall be
 5    made  if  the  tax  imposed  by  this Act on photo processing
 6    products is declared unconstitutional,  or  if  the  proceeds
 7    from  such  tax  are  unavailable for distribution because of
 8    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        All remaining moneys received by the Department  pursuant
19    to  this  Act  shall be paid into the General Revenue Fund of
20    the State Treasury.
21        As soon as possible after the first day  of  each  month,
22    upon   certification   of  the  Department  of  Revenue,  the
23    Comptroller shall order transferred and the  Treasurer  shall
24    transfer  from the General Revenue Fund to the Motor Fuel Tax
25    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
26    realized  under  this  Act  for  the  second preceding month.
27    Beginning April 1, 2000, this transfer is no longer  required
28    and shall not be made.
29        Net  revenue  realized  for  a month shall be the revenue
30    collected by the State pursuant to this Act, less the  amount
31    paid  out  during  that  month  as  refunds  to taxpayers for
32    overpayment of liability.
33    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
34    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
 
                            -40-               LRB9207230REdv
 1    91-872, eff. 7-1-00.)

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

 4        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
 5        Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
 6    this Section, the tax imposed by this Act is at the  rate  of
 7    6.25%  of the "selling price", as defined in Section 2 of the
 8    Service Use Tax Act, of the tangible personal property.   For
 9    the  purpose  of  computing  this  tax, in no event shall the
10    "selling price" be less than the cost price to the serviceman
11    of the tangible personal property transferred.   The  selling
12    price  of each item of tangible personal property transferred
13    as an incident of a  sale  of  service  may  be  shown  as  a
14    distinct and separate item on the serviceman's billing to the
15    service  customer.  If the selling price is not so shown, the
16    selling price of the tangible personal property is deemed  to
17    be  50%  of  the  serviceman's  entire billing to the service
18    customer.  When, however, a serviceman contracts  to  design,
19    develop,  and  produce  special order machinery or equipment,
20    the  tax  imposed  by  this  Act  shall  be  based   on   the
21    serviceman's  cost  price  of  the tangible personal property
22    transferred incident to the completion of the contract.
23        Beginning on July 1, 2000 and through December 31,  2000,
24    with  respect to motor fuel, as defined in Section 1.1 of the
25    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
26    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
27        With  respect  to gasohol, as defined in the Use Tax Act,
28    the tax imposed by this Act shall apply to 70%  of  the  cost
29    price  of  property transferred as an incident to the sale of
30    service on or after January 1, 1990, and before July 1, 2003,
31    and to 100% of the cost price thereafter.
32        Beginning on January 1, 2002  and  through  December  31,
 
                            -41-               LRB9207230REdv
 1    2006,  with respect to coal for use in this State, the tax is
 2    imposed at the rate of 1.25%.
 3        At the election of any  registered  serviceman  made  for
 4    each  fiscal  year,  sales  of service in which the aggregate
 5    annual cost price of tangible personal  property  transferred
 6    as  an  incident to the sales of service is less than 35%, or
 7    75% in the case of servicemen transferring prescription drugs
 8    or servicemen engaged in  graphic  arts  production,  of  the
 9    aggregate  annual  total  gross  receipts  from  all sales of
10    service, the tax imposed by this Act shall be  based  on  the
11    serviceman's  cost  price  of  the tangible personal property
12    transferred incident to the sale of those services.
13        The tax shall be imposed  at  the  rate  of  1%  on  food
14    prepared  for  immediate consumption and transferred incident
15    to a sale of service subject  to  this  Act  or  the  Service
16    Occupation  Tax  Act by an entity licensed under the Hospital
17    Licensing Act, the Nursing Home Care Act, or the  Child  Care
18    Act of 1969.  The tax shall also be imposed at the rate of 1%
19    on  food for human consumption that is to be consumed off the
20    premises where it is sold (other  than  alcoholic  beverages,
21    soft  drinks,  and  food that has been prepared for immediate
22    consumption and is not otherwise included in this  paragraph)
23    and   prescription   and  nonprescription  medicines,  drugs,
24    medical appliances, modifications to a motor vehicle for  the
25    purpose  of  rendering  it  usable  by a disabled person, and
26    insulin, urine testing materials, syringes, and needles  used
27    by  diabetics,  for  human  use.   For  the  purposes of this
28    Section, the term "soft drinks" means any complete, finished,
29    ready-to-use, non-alcoholic drink, whether carbonated or not,
30    including but not limited to soda water, cola,  fruit  juice,
31    vegetable juice, carbonated water, and all other preparations
32    commonly known as soft drinks of whatever kind or description
33    that  are  contained  in any closed or sealed can, carton, or
34    container,  regardless  of  size.   "Soft  drinks"  does  not
 
                            -42-               LRB9207230REdv
 1    include coffee, tea, non-carbonated  water,  infant  formula,
 2    milk  or  milk products as defined in the Grade A Pasteurized
 3    Milk and Milk Products Act, or drinks containing 50% or  more
 4    natural fruit or vegetable juice.
 5        Notwithstanding  any  other provisions of this Act, "food
 6    for human consumption that is to be consumed off the premises
 7    where it is sold" includes all food sold  through  a  vending
 8    machine,  except  soft  drinks  and  food  products  that are
 9    dispensed hot from  a  vending  machine,  regardless  of  the
10    location of the vending machine.
11    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
12    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

13        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
14        Sec.  9.   Each  serviceman  required  or  authorized  to
15    collect the tax herein imposed shall pay  to  the  Department
16    the  amount  of  such  tax at the time when he is required to
17    file his return for the period  during  which  such  tax  was
18    collectible,  less  a  discount  of  2.1% prior to January 1,
19    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
20    calendar  year,  whichever  is  greater,  which is allowed to
21    reimburse the serviceman for expenses incurred in  collecting
22    the  tax,  keeping  records,  preparing  and  filing returns,
23    remitting the tax and supplying data  to  the  Department  on
24    request.
25        Where  such  tangible  personal  property is sold under a
26    conditional sales contract, or under any other form  of  sale
27    wherein  the payment of the principal sum, or a part thereof,
28    is extended beyond the close of  the  period  for  which  the
29    return  is  filed,  the serviceman, in collecting the tax may
30    collect, for each tax return period, only the tax  applicable
31    to  the  part  of  the selling price actually received during
32    such tax return period.
33        Except as provided hereinafter in  this  Section,  on  or
 
                            -43-               LRB9207230REdv
 1    before  the  twentieth  day  of  each  calendar  month,  such
 2    serviceman  shall  file  a  return for the preceding calendar
 3    month in accordance with reasonable rules and regulations  to
 4    be  promulgated  by  the  Department of Revenue.  Such return
 5    shall be filed on a form prescribed  by  the  Department  and
 6    shall   contain   such  information  as  the  Department  may
 7    reasonably require.
 8        The Department may require  returns  to  be  filed  on  a
 9    quarterly  basis.  If so required, a return for each calendar
10    quarter shall be filed on or before the twentieth day of  the
11    calendar  month  following  the end of such calendar quarter.
12    The taxpayer shall also file a return with the Department for
13    each of the first two months of each calendar quarter, on  or
14    before  the  twentieth  day  of the following calendar month,
15    stating:
16             1.  The name of the seller;
17             2.  The address of the principal place  of  business
18        from which he engages in business as a serviceman in this
19        State;
20             3.  The total amount of taxable receipts received by
21        him   during  the  preceding  calendar  month,  including
22        receipts  from  charge  and  time  sales,  but  less  all
23        deductions allowed by law;
24             4.  The amount of credit provided in Section  2d  of
25        this Act;
26             5.  The amount of tax due;
27             5-5.  The signature of the taxpayer; and
28             6.  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        A  serviceman may accept a Manufacturer's Purchase Credit
 
                            -44-               LRB9207230REdv
 1    certification from a purchaser in satisfaction of Service Use
 2    Tax as provided in Section 3-70 of the Service Use Tax Act if
 3    the  purchaser  provides  the  appropriate  documentation  as
 4    required by Section 3-70 of the  Service  Use  Tax  Act.    A
 5    Manufacturer's  Purchase  Credit certification, accepted by a
 6    serviceman as provided in Section 3-70 of the Service Use Tax
 7    Act, may be  used  by  that  serviceman  to  satisfy  Service
 8    Occupation  Tax  liability  in  the  amount  claimed  in  the
 9    certification, not to exceed 6.25% of the receipts subject to
10    tax from a qualifying purchase.
11        If  the serviceman's average monthly tax liability to the
12    Department does not exceed $200, the Department may authorize
13    his returns to be filed on a quarter annual basis,  with  the
14    return  for January, February and March of a given year being
15    due by April 20 of such year; with the return for April,  May
16    and  June  of a given year being due by July 20 of such year;
17    with the return for July, August and  September  of  a  given
18    year  being  due  by  October  20  of such year, and with the
19    return for October, November and December  of  a  given  year
20    being due by January 20 of the following year.
21        If  the serviceman's average monthly tax liability to the
22    Department does not exceed $50, the Department may  authorize
23    his  returns  to be filed on an annual basis, with the return
24    for a given year being due by January  20  of  the  following
25    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
 
                            -45-               LRB9207230REdv
 1    month after discontinuing such business.
 2        Beginning October 1, 1993, a taxpayer who has an  average
 3    monthly  tax  liability  of  $150,000  or more shall make all
 4    payments required by rules of the  Department  by  electronic
 5    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 6    has an average monthly tax  liability  of  $100,000  or  more
 7    shall  make  all payments required by rules of the Department
 8    by electronic funds transfer.  Beginning October 1,  1995,  a
 9    taxpayer  who has an average monthly tax liability of $50,000
10    or more shall make all payments  required  by  rules  of  the
11    Department  by  electronic funds transfer.  Beginning October
12    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
13    $200,000 or more shall make all payments required by rules of
14    the  Department  by  electronic  funds  transfer.   The  term
15    "annual  tax  liability"  shall  be the sum of the taxpayer's
16    liabilities under this Act, and under  all  other  State  and
17    local  occupation  and  use  tax  laws  administered  by  the
18    Department,  for the immediately preceding calendar year. The
19    term "average monthly tax liability" means  the  sum  of  the
20    taxpayer's  liabilities  under  this Act, and under all other
21    State and local occupation and use tax laws  administered  by
22    the  Department,  for the immediately preceding calendar year
23    divided by 12.
24        Before August 1 of  each  year  beginning  in  1993,  the
25    Department  shall  notify  all  taxpayers  required  to  make
26    payments   by  electronic  funds  transfer.    All  taxpayers
27    required to make payments by electronic funds transfer  shall
28    make  those  payments  for a minimum of one year beginning on
29    October 1.
30        Any taxpayer not required to make payments by  electronic
31    funds transfer may make payments by electronic funds transfer
32    with the permission of the Department.
33        All  taxpayers  required  to  make  payment by electronic
34    funds transfer and any taxpayers  authorized  to  voluntarily
 
                            -46-               LRB9207230REdv
 1    make  payments  by electronic funds transfer shall make those
 2    payments in the manner authorized by the Department.
 3        The Department shall adopt such rules as are necessary to
 4    effectuate a program of electronic  funds  transfer  and  the
 5    requirements of this Section.
 6        Where  a  serviceman collects the tax with respect to the
 7    selling price of tangible personal property  which  he  sells
 8    and  the  purchaser thereafter returns such tangible personal
 9    property and the serviceman refunds the selling price thereof
10    to the purchaser, such serviceman shall also refund,  to  the
11    purchaser,  the  tax  so  collected from the purchaser.  When
12    filing his return for the period in which he refunds such tax
13    to the purchaser, the serviceman may deduct the amount of the
14    tax so refunded by  him  to  the  purchaser  from  any  other
15    Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
16    Occupation Tax or  Use  Tax  which  such  serviceman  may  be
17    required  to pay or remit to the Department, as shown by such
18    return, provided that the amount of the tax  to  be  deducted
19    shall previously have been remitted to the Department by such
20    serviceman.   If  the  serviceman  shall  not previously have
21    remitted the amount of such tax to the Department,  he  shall
22    be entitled to no deduction hereunder upon refunding such tax
23    to the purchaser.
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  Retailers'
28    Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
29    Act, to furnish all the return information  required  by  all
30    said Acts on the one form.
31        Where   the   serviceman   has  more  than  one  business
32    registered with the Department under  separate  registrations
33    hereunder,  such  serviceman  shall file separate returns for
34    each registered business.
 
                            -47-               LRB9207230REdv
 1        Beginning January 1,  1990,  each  month  the  Department
 2    shall  pay  into  the  Local  Government Tax Fund the revenue
 3    realized for the preceding month from the 1% tax on sales  of
 4    food  for  human  consumption which is to be consumed off the
 5    premises where it is sold (other  than  alcoholic  beverages,
 6    soft  drinks  and  food which has been prepared for immediate
 7    consumption) and prescription and nonprescription  medicines,
 8    drugs,   medical   appliances   and  insulin,  urine  testing
 9    materials, syringes and needles used by diabetics.
10        Beginning January 1,  1990,  each  month  the  Department
11    shall  pay  into the County and Mass Transit District Fund 4%
12    of the revenue realized for  the  preceding  month  from  the
13    6.25% general rate.
14        Beginning August 1, 2000, each month the Department shall
15    pay into the County and Mass Transit District Fund 20% of the
16    net  revenue  realized for the preceding month from the 1.25%
17    rate on the selling price of motor fuel and gasohol.
18        Beginning February 1, 2002,  each  month  the  Department
19    shall  pay into the County and Mass Transit District Fund 20%
20    of the net revenue realized for the preceding month from  the
21    1.25%  rate  on  the  selling  price  of coal for use in this
22    State.
23        Beginning January 1,  1990,  each  month  the  Department
24    shall  pay  into  the  Local  Government  Tax Fund 16% of the
25    revenue realized for  the  preceding  month  from  the  6.25%
26    general rate on transfers of tangible personal property.
27        Beginning August 1, 2000, each month the Department shall
28    pay into the Local Government Tax Fund 80% of the net revenue
29    realized  for  the preceding month from the 1.25% rate on the
30    selling price of motor fuel and gasohol.
31        Beginning February 1, 2002,  each  month  the  Department
32    shall  pay  into the Local Government Tax Fund 80% of the net
33    revenue realized for the preceding month from the 1.25%  rate
34    on the selling price of coal for use in this State.
 
                            -48-               LRB9207230REdv
 1        Of the remainder of the moneys received by the Department
 2    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
 3    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 4    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
 5    into the Build Illinois Fund; provided, however, that  if  in
 6    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 7    as  the case may be, of the moneys received by the Department
 8    and required to be paid into the Build Illinois Fund pursuant
 9    to Section 3 of the Retailers' Occupation Tax Act, Section  9
10    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
11    Section  9 of the Service Occupation Tax Act, such Acts being
12    hereinafter called the "Tax Acts" and such aggregate of  2.2%
13    or  3.8%,  as  the  case  may be, of moneys being hereinafter
14    called the "Tax Act Amount", and (2) the  amount  transferred
15    to the Build Illinois Fund from the State and Local Sales Tax
16    Reform  Fund  shall  be less than the Annual Specified Amount
17    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
18    Act),  an amount equal to the difference shall be immediately
19    paid into the Build Illinois Fund from other moneys  received
20    by  the  Department  pursuant  to  the  Tax Acts; and further
21    provided, that if on the last business day of any  month  the
22    sum  of  (1) the Tax Act Amount required to be deposited into
23    the Build Illinois Account in the Build Illinois Fund  during
24    such  month  and (2) the amount transferred during such month
25    to the Build Illinois Fund from the State and Local Sales Tax
26    Reform Fund shall have been less  than  1/12  of  the  Annual
27    Specified  Amount, an amount equal to the difference shall be
28    immediately paid into the  Build  Illinois  Fund  from  other
29    moneys  received  by the Department pursuant to the Tax Acts;
30    and, further provided, that in no event  shall  the  payments
31    required  under  the  preceding  proviso  result in aggregate
32    payments into the Build Illinois Fund pursuant to this clause
33    (b) for any fiscal year in excess of the greater of  (i)  the
34    Tax  Act  Amount or (ii) the Annual Specified Amount for such
 
                            -49-               LRB9207230REdv
 1    fiscal year; and, further provided, that the amounts  payable
 2    into  the  Build Illinois Fund under this clause (b) shall be
 3    payable only until such  time  as  the  aggregate  amount  on
 4    deposit  under each trust indenture securing Bonds issued and
 5    outstanding pursuant  to  the  Build  Illinois  Bond  Act  is
 6    sufficient, taking into account any future investment income,
 7    to  fully provide, in accordance with such indenture, for the
 8    defeasance of or the payment of the principal of, premium, if
 9    any, and interest on the Bonds secured by such indenture  and
10    on  any  Bonds  expected to be issued thereafter and all fees
11    and costs payable with respect thereto, all as  certified  by
12    the  Director  of  the  Bureau of the Budget.  If on the last
13    business day of any month  in  which  Bonds  are  outstanding
14    pursuant to the Build Illinois Bond Act, the aggregate of the
15    moneys  deposited  in  the Build Illinois Bond Account in the
16    Build Illinois Fund in such month  shall  be  less  than  the
17    amount  required  to  be  transferred  in such month from the
18    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
19    Retirement  and  Interest  Fund pursuant to Section 13 of the
20    Build Illinois Bond Act, an amount equal to  such  deficiency
21    shall  be  immediately paid from other moneys received by the
22    Department pursuant to the Tax Acts  to  the  Build  Illinois
23    Fund;  provided,  however, that any amounts paid to the Build
24    Illinois Fund in any fiscal year pursuant  to  this  sentence
25    shall be deemed to constitute payments pursuant to clause (b)
26    of  the  preceding  sentence  and  shall  reduce  the  amount
27    otherwise payable for such fiscal year pursuant to clause (b)
28    of  the  preceding  sentence.   The  moneys  received  by the
29    Department pursuant to this Act and required to be  deposited
30    into the Build Illinois Fund are subject to the pledge, claim
31    and charge set forth in Section 12 of the Build Illinois Bond
32    Act.
33        Subject  to  payment  of  amounts into the Build Illinois
34    Fund as  provided  in  the  preceding  paragraph  or  in  any
 
                            -50-               LRB9207230REdv
 1    amendment  thereto hereafter enacted, the following specified
 2    monthly  installment  of  the   amount   requested   in   the
 3    certificate  of  the  Chairman  of  the Metropolitan Pier and
 4    Exposition Authority provided  under  Section  8.25f  of  the
 5    State  Finance  Act, but not in excess of the sums designated
 6    as "Total Deposit", shall be deposited in the aggregate  from
 7    collections  under Section 9 of the Use Tax Act, Section 9 of
 8    the Service Use Tax Act, Section 9 of the Service  Occupation
 9    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
10    into the  McCormick  Place  Expansion  Project  Fund  in  the
11    specified fiscal years.
12             Fiscal Year                   Total Deposit
13                 1993                            $0
14                 1994                        53,000,000
15                 1995                        58,000,000
16                 1996                        61,000,000
17                 1997                        64,000,000
18                 1998                        68,000,000
19                 1999                        71,000,000
20                 2000                        75,000,000
21                 2001                        80,000,000
22                 2002                        84,000,000
23                 2003                        89,000,000
24                 2004                        93,000,000
25                 2005                        97,000,000
26                 2006                       102,000,000
27                 2007                       108,000,000
28                 2008                       115,000,000
29                 2009                       120,000,000
30                 2010                       126,000,000
31                 2011                       132,000,000
32                 2012                       138,000,000
33                 2013 and                   145,000,000
34             each fiscal year
 
                            -51-               LRB9207230REdv
 1          thereafter that bonds
 2          are outstanding under
 3           Section 13.2 of the
 4          Metropolitan Pier and
 5           Exposition Authority
 6        Act, but not after fiscal year 2029.
 7        Beginning  July 20, 1993 and in each month of each fiscal
 8    year thereafter, one-eighth of the amount  requested  in  the
 9    certificate  of  the  Chairman  of  the Metropolitan Pier and
10    Exposition Authority for that fiscal year,  less  the  amount
11    deposited  into the McCormick Place Expansion Project Fund by
12    the State Treasurer in the respective month under  subsection
13    (g)  of  Section  13  of the Metropolitan Pier and Exposition
14    Authority Act, plus cumulative deficiencies in  the  deposits
15    required  under  this  Section for previous months and years,
16    shall be deposited into the McCormick Place Expansion Project
17    Fund, until the full amount requested for  the  fiscal  year,
18    but  not  in  excess  of the amount specified above as "Total
19    Deposit", has been deposited.
20        Subject to payment of amounts  into  the  Build  Illinois
21    Fund  and the McCormick Place Expansion Project Fund pursuant
22    to the preceding  paragraphs  or  in  any  amendment  thereto
23    hereafter  enacted,  each month the Department shall pay into
24    the Local  Government  Distributive  Fund  0.4%  of  the  net
25    revenue  realized for the preceding month from the 5% general
26    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
27    preceding  month from the 6.25% general rate, as the case may
28    be, on the selling price of tangible personal property  which
29    amount  shall,  subject  to  appropriation, be distributed as
30    provided in Section 2 of the State Revenue Sharing  Act.   No
31    payments or distributions pursuant to this paragraph shall be
32    made  if  the  tax  imposed  by  this  Act on photoprocessing
33    products is declared unconstitutional,  or  if  the  proceeds
34    from  such  tax  are  unavailable for distribution because of
 
                            -52-               LRB9207230REdv
 1    litigation.
 2        Subject to payment of amounts  into  the  Build  Illinois
 3    Fund,  the  McCormick  Place  Expansion Project Fund, and the
 4    Local Government Distributive Fund pursuant to the  preceding
 5    paragraphs  or  in  any amendments thereto hereafter enacted,
 6    beginning July 1, 1993, the Department shall each  month  pay
 7    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
 8    revenue realized for  the  preceding  month  from  the  6.25%
 9    general  rate  on  the  selling  price  of  tangible personal
10    property.
11        Remaining moneys received by the Department  pursuant  to
12    this  Act  shall be paid into the General Revenue Fund of the
13    State Treasury.
14        The Department may, upon separate  written  notice  to  a
15    taxpayer,  require  the taxpayer to prepare and file with the
16    Department on a form prescribed by the Department within  not
17    less  than  60  days  after  receipt  of the notice an annual
18    information return for the tax year specified in the  notice.
19    Such   annual  return  to  the  Department  shall  include  a
20    statement of gross receipts as shown by the  taxpayer's  last
21    Federal  income  tax  return.   If  the total receipts of the
22    business as reported in the Federal income tax return do  not
23    agree  with  the gross receipts reported to the Department of
24    Revenue for the same period, the taxpayer shall attach to his
25    annual return a schedule showing a reconciliation  of  the  2
26    amounts  and  the reasons for the difference.  The taxpayer's
27    annual return to the Department shall also disclose the  cost
28    of goods sold by the taxpayer during the year covered by such
29    return,  opening  and  closing  inventories of such goods for
30    such year, cost of goods used from stock or taken from  stock
31    and  given  away  by  the taxpayer during such year, pay roll
32    information of the taxpayer's business during such  year  and
33    any  additional  reasonable  information which the Department
34    deems would be helpful in determining  the  accuracy  of  the
 
                            -53-               LRB9207230REdv
 1    monthly,  quarterly  or annual returns filed by such taxpayer
 2    as hereinbefore provided for in this Section.
 3        If the annual information return required by this Section
 4    is not filed when and as  required,  the  taxpayer  shall  be
 5    liable as follows:
 6             (i)  Until  January  1,  1994, the taxpayer shall be
 7        liable for a penalty equal to 1/6 of 1% of  the  tax  due
 8        from such taxpayer under this Act during the period to be
 9        covered  by  the annual return for each month or fraction
10        of a month until such return is filed  as  required,  the
11        penalty  to  be assessed and collected in the same manner
12        as any other penalty provided for in this Act.
13             (ii)  On and after January  1,  1994,  the  taxpayer
14        shall be liable for a penalty as described in Section 3-4
15        of the Uniform Penalty and Interest Act.
16        The chief executive officer, proprietor, owner or highest
17    ranking  manager  shall sign the annual return to certify the
18    accuracy of the information contained  therein.   Any  person
19    who  willfully  signs  the  annual return containing false or
20    inaccurate  information  shall  be  guilty  of  perjury   and
21    punished  accordingly.   The annual return form prescribed by
22    the Department  shall  include  a  warning  that  the  person
23    signing the return may be liable for perjury.
24        The  foregoing  portion  of  this  Section concerning the
25    filing of an annual information return shall not apply  to  a
26    serviceman  who  is not required to file an income tax return
27    with the United States Government.
28        As soon as possible after the first day  of  each  month,
29    upon   certification   of  the  Department  of  Revenue,  the
30    Comptroller shall order transferred and the  Treasurer  shall
31    transfer  from the General Revenue Fund to the Motor Fuel Tax
32    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
33    realized  under  this  Act  for  the  second preceding month.
34    Beginning April 1, 2000, this transfer is no longer  required
 
                            -54-               LRB9207230REdv
 1    and shall not be made.
 2        Net  revenue  realized  for  a month shall be the revenue
 3    collected by the State pursuant to this Act, less the  amount
 4    paid  out  during  that  month  as  refunds  to taxpayers for
 5    overpayment of liability.
 6        For greater simplicity of  administration,  it  shall  be
 7    permissible  for  manufacturers,  importers  and  wholesalers
 8    whose  products  are sold by numerous servicemen in Illinois,
 9    and who wish to do  so,  to  assume  the  responsibility  for
10    accounting  and  paying  to  the  Department all tax accruing
11    under this Act with respect to such sales, if the  servicemen
12    who  are  affected  do  not  make  written  objection  to the
13    Department to this arrangement.
14    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
15    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
16    91-872, eff. 7-1-00.)

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

19        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
20        Sec.  2-10.  Rate  of  tax.  Unless otherwise provided in
21    this Section, the tax imposed by this Act is at the  rate  of
22    6.25%  of  gross  receipts  from  sales  of tangible personal
23    property made in the course of business.
24        Beginning on July 1, 2000 and through December 31,  2000,
25    with  respect to motor fuel, as defined in Section 1.1 of the
26    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
27    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
28        Within   14   days  after  the  effective  date  of  this
29    amendatory Act of the 91st General Assembly, each retailer of
30    motor fuel and gasohol shall cause the following notice to be
31    posted  in  a  prominently  visible  place  on  each   retail
32    dispensing  device  that  is  used  to dispense motor fuel or
 
                            -55-               LRB9207230REdv
 1    gasohol in the State of Illinois:  "As of July 1,  2000,  the
 2    State  of  Illinois has eliminated the State's share of sales
 3    tax on motor fuel and gasohol through December 31, 2000.  The
 4    price  on  this  pump  should  reflect the elimination of the
 5    tax."  The notice shall be printed in bold print  on  a  sign
 6    that is no smaller than 4 inches by 8 inches.  The sign shall
 7    be  clearly  visible to customers.  Any retailer who fails to
 8    post or maintain a required sign through December 31, 2000 is
 9    guilty of a petty offense for which the fine  shall  be  $500
10    per day per each retail premises where a violation occurs.
11        With  respect  to gasohol, as defined in the Use Tax Act,
12    the tax imposed by this Act applies to 70% of the proceeds of
13    sales made on or after January 1, 1990, and  before  July  1,
14    2003, and to 100% of the proceeds of sales made thereafter.
15        Beginning  on  January  1,  2002 and through December 31,
16    2006, with respect to coal for use in this State, the tax  is
17    imposed at the rate of 1.25%.
18        With  respect to food for human consumption that is to be
19    consumed off the  premises  where  it  is  sold  (other  than
20    alcoholic  beverages,  soft  drinks,  and  food that has been
21    prepared for  immediate  consumption)  and  prescription  and
22    nonprescription   medicines,   drugs,   medical   appliances,
23    modifications to a motor vehicle for the purpose of rendering
24    it  usable  by  a disabled person, and insulin, urine testing
25    materials, syringes, and needles used by diabetics, for human
26    use, the tax is imposed at the rate of 1%. For  the  purposes
27    of  this  Section, the term "soft drinks" means any complete,
28    finished,   ready-to-use,   non-alcoholic   drink,    whether
29    carbonated  or  not, including but not limited to soda water,
30    cola, fruit juice, vegetable juice, carbonated water, and all
31    other preparations commonly known as soft drinks of  whatever
32    kind  or  description  that  are  contained  in any closed or
33    sealed bottle, can, carton, or container, regardless of size.
34    "Soft drinks" does not include  coffee,  tea,  non-carbonated
 
                            -56-               LRB9207230REdv
 1    water,  infant  formula,  milk or milk products as defined in
 2    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 3    containing 50% or more natural fruit or vegetable juice.
 4        Notwithstanding any other provisions of this  Act,  "food
 5    for human consumption that is to be consumed off the premises
 6    where  it  is  sold" includes all food sold through a vending
 7    machine, except  soft  drinks  and  food  products  that  are
 8    dispensed  hot  from  a  vending  machine,  regardless of the
 9    location of the vending machine.
10    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
11    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

12        (35 ILCS 120/3) (from Ch. 120, par. 442)
13        Sec. 3.  Except as provided in this Section, on or before
14    the  twentieth  day  of  each  calendar  month,  every person
15    engaged in the business of selling tangible personal property
16    at retail in this State during the preceding  calendar  month
17    shall file a return with the Department, stating:
18             1.  The name of the seller;
19             2.  His  residence  address  and  the address of his
20        principal place  of  business  and  the  address  of  the
21        principal  place  of  business  (if  that  is a different
22        address) from which he engages in the business of selling
23        tangible personal property at retail in this State;
24             3.  Total amount of receipts received by him  during
25        the  preceding calendar month or quarter, as the case may
26        be, from sales of tangible personal  property,  and  from
27        services furnished, by him during such preceding calendar
28        month or quarter;
29             4.  Total   amount   received   by  him  during  the
30        preceding calendar month or quarter on  charge  and  time
31        sales  of  tangible  personal property, and from services
32        furnished, by him prior to the month or quarter for which
33        the return is filed;
 
                            -57-               LRB9207230REdv
 1             5.  Deductions allowed by law;
 2             6.  Gross receipts which were received by him during
 3        the preceding calendar month  or  quarter  and  upon  the
 4        basis of which the tax is imposed;
 5             7.  The  amount  of credit provided in Section 2d of
 6        this Act;
 7             8.  The amount of tax due;
 8             9.  The signature of the taxpayer; and
 9             10.  Such  other  reasonable  information   as   the
10        Department may require.
11        If a taxpayer fails to sign a return within 30 days after
12    the proper notice and demand for signature by the Department,
13    the  return shall be considered valid and any amount shown to
14    be due on the return shall be deemed assessed.
15        Each return shall be  accompanied  by  the  statement  of
16    prepaid tax issued pursuant to Section 2e for which credit is
17    claimed.
18        A  retailer  may  accept a Manufacturer's Purchase Credit
19    certification from a purchaser in satisfaction of Use Tax  as
20    provided  in Section 3-85 of the Use Tax Act if the purchaser
21    provides the appropriate documentation as required by Section
22    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
23    certification,  accepted by a retailer as provided in Section
24    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
25    satisfy  Retailers'  Occupation  Tax  liability in the amount
26    claimed in the certification, not  to  exceed  6.25%  of  the
27    receipts subject to tax from a qualifying purchase.
28        The  Department  may  require  returns  to  be filed on a
29    quarterly basis.  If so required, a return for each  calendar
30    quarter  shall be filed on or before the twentieth day of the
31    calendar month following the end of  such  calendar  quarter.
32    The taxpayer shall also file a return with the Department for
33    each  of the first two months of each calendar quarter, on or
34    before the twentieth day of  the  following  calendar  month,
 
                            -58-               LRB9207230REdv
 1    stating:
 2             1.  The name of the seller;
 3             2.  The  address  of the principal place of business
 4        from which he engages in the business of selling tangible
 5        personal property at retail in this State;
 6             3.  The total amount of taxable receipts received by
 7        him during the preceding calendar  month  from  sales  of
 8        tangible  personal  property by him during such preceding
 9        calendar month, including receipts from charge  and  time
10        sales, but less all deductions allowed by law;
11             4.  The  amount  of credit provided in Section 2d of
12        this Act;
13             5.  The amount of tax due; and
14             6.  Such  other  reasonable   information   as   the
15        Department may require.
16        If  a total amount of less than $1 is payable, refundable
17    or creditable, such amount shall be disregarded if it is less
18    than 50 cents and shall be increased to $1 if it is 50  cents
19    or more.
20        Beginning  October 1, 1993, a taxpayer who has an average
21    monthly tax liability of $150,000  or  more  shall  make  all
22    payments  required  by  rules of the Department by electronic
23    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
24    has  an  average  monthly  tax  liability of $100,000 or more
25    shall make all payments required by rules of  the  Department
26    by  electronic  funds transfer.  Beginning October 1, 1995, a
27    taxpayer who has an average monthly tax liability of  $50,000
28    or  more  shall  make  all  payments required by rules of the
29    Department by electronic funds transfer.   Beginning  October
30    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
31    $200,000 or more shall make all payments required by rules of
32    the  Department  by  electronic  funds  transfer.   The  term
33    "annual tax liability" shall be the  sum  of  the  taxpayer's
34    liabilities  under  this  Act,  and under all other State and
 
                            -59-               LRB9207230REdv
 1    local  occupation  and  use  tax  laws  administered  by  the
 2    Department, for the immediately preceding calendar year.  The
 3    term  "average monthly tax liability" shall be the sum of the
 4    taxpayer's liabilities under this Act, and  under  all  other
 5    State  and  local occupation and use tax laws administered by
 6    the Department, for the immediately preceding  calendar  year
 7    divided by 12.
 8        Before  August  1  of  each  year  beginning in 1993, the
 9    Department  shall  notify  all  taxpayers  required  to  make
10    payments  by  electronic  funds  transfer.    All   taxpayers
11    required  to make payments by electronic funds transfer shall
12    make those payments for a minimum of one  year  beginning  on
13    October 1.
14        Any  taxpayer not required to make payments by electronic
15    funds transfer may make payments by electronic funds transfer
16    with the permission of the Department.
17        All taxpayers required  to  make  payment  by  electronic
18    funds  transfer  and  any taxpayers authorized to voluntarily
19    make payments by electronic funds transfer shall  make  those
20    payments in the manner authorized by the Department.
21        The Department shall adopt such rules as are necessary to
22    effectuate  a  program  of  electronic funds transfer and the
23    requirements of this Section.
24        Any amount which is required to be shown or  reported  on
25    any  return  or  other document under this Act shall, if such
26    amount is not a whole-dollar  amount,  be  increased  to  the
27    nearest  whole-dollar amount in any case where the fractional
28    part of a dollar is 50 cents or more, and  decreased  to  the
29    nearest  whole-dollar  amount  where the fractional part of a
30    dollar is less than 50 cents.
31        If the retailer is otherwise required to file  a  monthly
32    return and if the retailer's average monthly tax liability to
33    the  Department  does  not  exceed  $200,  the Department may
34    authorize his returns to be filed on a quarter annual  basis,
 
                            -60-               LRB9207230REdv
 1    with  the  return  for January, February and March of a given
 2    year being due by April 20 of such year; with the return  for
 3    April,  May  and June of a given year being due by July 20 of
 4    such year; with the return for July, August and September  of
 5    a  given  year being due by October 20 of such year, and with
 6    the return for October, November and December of a given year
 7    being due by January 20 of the following year.
 8        If the retailer is otherwise required to file  a  monthly
 9    or quarterly return and if the retailer's average monthly tax
10    liability  with  the  Department  does  not  exceed  $50, the
11    Department may authorize his returns to be filed on an annual
12    basis, with the return for a given year being due by  January
13    20 of the following year.
14        Such  quarter  annual  and annual returns, as to form and
15    substance, shall be  subject  to  the  same  requirements  as
16    monthly returns.
17        Notwithstanding   any   other   provision   in  this  Act
18    concerning the time within which  a  retailer  may  file  his
19    return, in the case of any retailer who ceases to engage in a
20    kind  of  business  which  makes  him  responsible for filing
21    returns under this Act, such  retailer  shall  file  a  final
22    return  under  this Act with the Department not more than one
23    month after discontinuing such business.
24        Where  the  same  person  has  more  than  one   business
25    registered  with  the Department under separate registrations
26    under this Act, such person may not file each return that  is
27    due   as   a  single  return  covering  all  such  registered
28    businesses, but shall file separate  returns  for  each  such
29    registered business.
30        In  addition, with respect to motor vehicles, watercraft,
31    aircraft, and trailers that are  required  to  be  registered
32    with  an  agency  of  this State, every retailer selling this
33    kind of tangible  personal  property  shall  file,  with  the
34    Department,  upon a form to be prescribed and supplied by the
 
                            -61-               LRB9207230REdv
 1    Department, a separate return for each such item of  tangible
 2    personal  property  which the retailer sells, except that if,
 3    in  the  same  transaction,  (i)  a  retailer  of   aircraft,
 4    watercraft,  motor  vehicles  or trailers transfers more than
 5    one aircraft, watercraft, motor vehicle or trailer to another
 6    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
 7    retailer for the purpose of resale  or  (ii)  a  retailer  of
 8    aircraft,  watercraft,  motor vehicles, or trailers transfers
 9    more than one aircraft, watercraft, motor vehicle, or trailer
10    to a purchaser for use  as  a  qualifying  rolling  stock  as
11    provided  in  Section  2-5  of this Act, then that seller may
12    report  the  transfer  of  all  aircraft,  watercraft,  motor
13    vehicles or trailers involved  in  that  transaction  to  the
14    Department  on the same uniform invoice-transaction reporting
15    return form.  For  purposes  of  this  Section,  "watercraft"
16    means a Class 2, Class 3, or Class 4 watercraft as defined in
17    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
18    personal watercraft, or any boat  equipped  with  an  inboard
19    motor.
20        Any  retailer  who sells only motor vehicles, watercraft,
21    aircraft, or trailers that are required to be registered with
22    an agency of this State, so that  all  retailers'  occupation
23    tax liability is required to be reported, and is reported, on
24    such  transaction  reporting returns and who is not otherwise
25    required to file monthly or quarterly returns, need not  file
26    monthly or quarterly returns.  However, those retailers shall
27    be required to file returns on an annual basis.
28        The  transaction  reporting  return, in the case of motor
29    vehicles or trailers that are required to be registered  with
30    an  agency  of  this State, shall be the same document as the
31    Uniform Invoice referred to in Section 5-402 of The  Illinois
32    Vehicle  Code  and  must  show  the  name  and address of the
33    seller; the name and address of the purchaser; the amount  of
34    the  selling  price  including  the  amount  allowed  by  the
 
                            -62-               LRB9207230REdv
 1    retailer  for  traded-in property, if any; the amount allowed
 2    by the retailer for the traded-in tangible personal property,
 3    if any, to the extent to which Section 1 of this  Act  allows
 4    an exemption for the value of traded-in property; the balance
 5    payable  after  deducting  such  trade-in  allowance from the
 6    total selling price; the amount of tax due from the  retailer
 7    with respect to such transaction; the amount of tax collected
 8    from  the  purchaser  by the retailer on such transaction (or
 9    satisfactory evidence that  such  tax  is  not  due  in  that
10    particular  instance, if that is claimed to be the fact); the
11    place and date of the sale; a  sufficient  identification  of
12    the  property  sold; such other information as is required in
13    Section 5-402 of The Illinois Vehicle Code,  and  such  other
14    information as the Department may reasonably require.
15        The   transaction   reporting   return  in  the  case  of
16    watercraft or aircraft must show the name and address of  the
17    seller;  the name and address of the purchaser; the amount of
18    the  selling  price  including  the  amount  allowed  by  the
19    retailer for traded-in property, if any; the  amount  allowed
20    by the retailer for the traded-in tangible personal property,
21    if  any,  to the extent to which Section 1 of this Act allows
22    an exemption for the value of traded-in property; the balance
23    payable after deducting  such  trade-in  allowance  from  the
24    total  selling price; the amount of tax due from the retailer
25    with respect to such transaction; the amount of tax collected
26    from the purchaser by the retailer on  such  transaction  (or
27    satisfactory  evidence  that  such  tax  is  not  due in that
28    particular instance, if that is claimed to be the fact);  the
29    place  and  date  of the sale, a sufficient identification of
30    the  property  sold,  and  such  other  information  as   the
31    Department may reasonably require.
32        Such  transaction  reporting  return  shall  be filed not
33    later than 20 days after the day of delivery of the item that
34    is being sold, but may be filed by the retailer at  any  time
 
                            -63-               LRB9207230REdv
 1    sooner  than  that  if  he chooses to do so.  The transaction
 2    reporting return and tax remittance  or  proof  of  exemption
 3    from   the  Illinois  use  tax  may  be  transmitted  to  the
 4    Department by way of the State agency with  which,  or  State
 5    officer  with  whom  the  tangible  personal property must be
 6    titled or registered (if titling or registration is required)
 7    if the Department and such agency or State officer  determine
 8    that   this   procedure   will  expedite  the  processing  of
 9    applications for title or registration.
10        With each such transaction reporting return, the retailer
11    shall remit the proper amount of tax  due  (or  shall  submit
12    satisfactory evidence that the sale is not taxable if that is
13    the  case),  to  the  Department or its agents, whereupon the
14    Department shall issue, in the purchaser's name,  a  use  tax
15    receipt  (or  a certificate of exemption if the Department is
16    satisfied that the particular sale is tax exempt) which  such
17    purchaser  may  submit  to  the  agency  with which, or State
18    officer with whom, he must title  or  register  the  tangible
19    personal   property   that   is   involved   (if  titling  or
20    registration is required)  in  support  of  such  purchaser's
21    application  for an Illinois certificate or other evidence of
22    title or registration to such tangible personal property.
23        No retailer's failure or refusal to remit tax under  this
24    Act  precludes  a  user,  who  has paid the proper tax to the
25    retailer, from obtaining his certificate of  title  or  other
26    evidence of title or registration (if titling or registration
27    is  required)  upon  satisfying the Department that such user
28    has paid the proper tax (if tax is due) to the retailer.  The
29    Department shall adopt appropriate rules  to  carry  out  the
30    mandate of this paragraph.
31        If  the  user who would otherwise pay tax to the retailer
32    wants the transaction reporting return filed and the  payment
33    of  the  tax  or  proof  of  exemption made to the Department
34    before the retailer is willing to take these actions and such
 
                            -64-               LRB9207230REdv
 1    user has not paid the tax to  the  retailer,  such  user  may
 2    certify  to  the  fact  of such delay by the retailer and may
 3    (upon the Department being satisfied of  the  truth  of  such
 4    certification)  transmit  the  information  required  by  the
 5    transaction  reporting  return  and the remittance for tax or
 6    proof of exemption directly to the Department and obtain  his
 7    tax  receipt  or  exemption determination, in which event the
 8    transaction reporting return and tax  remittance  (if  a  tax
 9    payment  was required) shall be credited by the Department to
10    the  proper  retailer's  account  with  the  Department,  but
11    without the 2.1% or  1.75%  discount  provided  for  in  this
12    Section  being  allowed.  When the user pays the tax directly
13    to the Department, he shall pay the tax in  the  same  amount
14    and in the same form in which it would be remitted if the tax
15    had been remitted to the Department by the retailer.
16        Refunds  made  by  the seller during the preceding return
17    period  to  purchasers,  on  account  of  tangible   personal
18    property  returned  to  the  seller,  shall  be  allowed as a
19    deduction under subdivision 5 of  his  monthly  or  quarterly
20    return,   as  the  case  may  be,  in  case  the  seller  had
21    theretofore included the  receipts  from  the  sale  of  such
22    tangible  personal  property in a return filed by him and had
23    paid the tax  imposed  by  this  Act  with  respect  to  such
24    receipts.
25        Where  the  seller  is a corporation, the return filed on
26    behalf of such corporation shall be signed by the  president,
27    vice-president,  secretary  or  treasurer  or by the properly
28    accredited agent of such corporation.
29        Where the seller is  a  limited  liability  company,  the
30    return filed on behalf of the limited liability company shall
31    be  signed by a manager, member, or properly accredited agent
32    of the limited liability company.
33        Except as provided in this Section, the  retailer  filing
34    the  return  under  this Section shall, at the time of filing
 
                            -65-               LRB9207230REdv
 1    such return, pay to the Department the amount of tax  imposed
 2    by  this Act less a discount of 2.1% prior to January 1, 1990
 3    and 1.75% on and after January 1, 1990, or  $5  per  calendar
 4    year, whichever is greater, which is allowed to reimburse the
 5    retailer  for  the  expenses  incurred  in  keeping  records,
 6    preparing and filing returns, remitting the tax and supplying
 7    data  to  the  Department  on  request.   Any prepayment made
 8    pursuant to Section 2d of this Act shall be included  in  the
 9    amount  on which such 2.1% or 1.75% discount is computed.  In
10    the case of retailers  who  report  and  pay  the  tax  on  a
11    transaction   by  transaction  basis,  as  provided  in  this
12    Section, such discount shall be  taken  with  each  such  tax
13    remittance  instead  of when such retailer files his periodic
14    return.
15        Before October 1, 2000, if the taxpayer's average monthly
16    tax liability to the Department under this Act, the  Use  Tax
17    Act,  the Service Occupation Tax Act, and the Service Use Tax
18    Act, excluding any liability for  prepaid  sales  tax  to  be
19    remitted  in  accordance  with  Section  2d  of this Act, was
20    $10,000 or more during  the  preceding  4  complete  calendar
21    quarters,  he  shall  file  a return with the Department each
22    month by the 20th day of the month next following  the  month
23    during  which  such  tax liability is incurred and shall make
24    payments to the Department on or before the 7th,  15th,  22nd
25    and  last  day  of  the  month during which such liability is
26    incurred. On and after October 1,  2000,  if  the  taxpayer's
27    average  monthly  tax  liability to the Department under this
28    Act, the Use Tax Act, the Service Occupation Tax Act, and the
29    Service Use Tax Act,  excluding  any  liability  for  prepaid
30    sales  tax  to  be  remitted in accordance with Section 2d of
31    this Act, was $20,000 or more during the preceding 4 complete
32    calendar quarters, he shall file a return with the Department
33    each month by the 20th day of the month  next  following  the
34    month  during  which such tax liability is incurred and shall
 
                            -66-               LRB9207230REdv
 1    make payment to the Department on or before  the  7th,  15th,
 2    22nd and last day of the month during which such liability is
 3    incurred.    If  the month during which such tax liability is
 4    incurred began prior to January 1, 1985, each  payment  shall
 5    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
 6    liability for the month or an amount set  by  the  Department
 7    not  to  exceed  1/4  of the average monthly liability of the
 8    taxpayer to the  Department  for  the  preceding  4  complete
 9    calendar  quarters  (excluding the month of highest liability
10    and the month of lowest liability in such 4 quarter  period).
11    If  the  month  during  which  such tax liability is incurred
12    begins on or after January 1, 1985 and prior  to  January  1,
13    1987,  each  payment  shall be in an amount equal to 22.5% of
14    the taxpayer's actual liability for the month or 27.5% of the
15    taxpayer's liability for  the  same  calendar  month  of  the
16    preceding year.  If the month during which such tax liability
17    is  incurred  begins on or after January 1, 1987 and prior to
18    January 1, 1988, each payment shall be in an amount equal  to
19    22.5%  of  the  taxpayer's  actual liability for the month or
20    26.25% of the taxpayer's  liability  for  the  same  calendar
21    month  of the preceding year.  If the month during which such
22    tax liability is incurred begins on or after January 1, 1988,
23    and prior to January 1, 1989, or begins on or  after  January
24    1, 1996, each payment shall be in an amount equal to 22.5% of
25    the  taxpayer's  actual liability for the month or 25% of the
26    taxpayer's liability for  the  same  calendar  month  of  the
27    preceding  year. If the month during which such tax liability
28    is incurred begins on or after January 1, 1989, and prior  to
29    January  1, 1996, each payment shall be in an amount equal to
30    22.5% of the taxpayer's actual liability for the month or 25%
31    of the taxpayer's liability for the same  calendar  month  of
32    the preceding year or 100% of the taxpayer's actual liability
33    for the quarter monthly reporting period.  The amount of such
34    quarter  monthly payments shall be credited against the final
 
                            -67-               LRB9207230REdv
 1    tax liability  of  the  taxpayer's  return  for  that  month.
 2    Before  October  1, 2000, once applicable, the requirement of
 3    the making of quarter monthly payments to the  Department  by
 4    taxpayers  having an average monthly tax liability of $10,000
 5    or more as determined in  the  manner  provided  above  shall
 6    continue  until  such taxpayer's average monthly liability to
 7    the Department  during  the  preceding  4  complete  calendar
 8    quarters  (excluding  the  month of highest liability and the
 9    month of lowest liability) is less than $9,000, or until such
10    taxpayer's average monthly liability  to  the  Department  as
11    computed  for  each  calendar  quarter  of  the  4  preceding
12    complete  calendar  quarter  period  is  less  than  $10,000.
13    However,  if  a  taxpayer  can  show  the  Department  that a
14    substantial change in the taxpayer's  business  has  occurred
15    which  causes  the  taxpayer  to  anticipate that his average
16    monthly tax liability for the reasonably  foreseeable  future
17    will fall below the $10,000 threshold stated above, then such
18    taxpayer  may  petition  the  Department for a change in such
19    taxpayer's reporting status.  On and after October  1,  2000,
20    once  applicable,  the  requirement  of the making of quarter
21    monthly payments to the Department  by  taxpayers  having  an
22    average   monthly   tax  liability  of  $20,000  or  more  as
23    determined in the manner provided above shall continue  until
24    such  taxpayer's  average monthly liability to the Department
25    during the preceding 4 complete calendar quarters  (excluding
26    the  month  of  highest  liability  and  the  month of lowest
27    liability) is less than  $19,000  or  until  such  taxpayer's
28    average  monthly  liability to the Department as computed for
29    each calendar quarter of the 4  preceding  complete  calendar
30    quarter  period is less than $20,000.  However, if a taxpayer
31    can show the Department that  a  substantial  change  in  the
32    taxpayer's business has occurred which causes the taxpayer to
33    anticipate  that  his  average  monthly tax liability for the
34    reasonably foreseeable future will  fall  below  the  $20,000
 
                            -68-               LRB9207230REdv
 1    threshold  stated  above, then such taxpayer may petition the
 2    Department for a change in such taxpayer's reporting  status.
 3    The  Department shall change such taxpayer's reporting status
 4    unless it finds that such change is seasonal  in  nature  and
 5    not  likely  to  be  long  term.  If any such quarter monthly
 6    payment is not paid at the time or in the amount required  by
 7    this Section, then the taxpayer shall be liable for penalties
 8    and interest on the difference between the minimum amount due
 9    as  a  payment and the amount of such quarter monthly payment
10    actually and timely paid, except insofar as the taxpayer  has
11    previously  made payments for that month to the Department in
12    excess of the minimum payments previously due as provided  in
13    this  Section. The Department shall make reasonable rules and
14    regulations to govern the quarter monthly payment amount  and
15    quarter monthly payment dates for taxpayers who file on other
16    than a calendar monthly basis.
17        Without  regard to whether a taxpayer is required to make
18    quarter monthly payments as specified above, any taxpayer who
19    is required by Section 2d of this Act to  collect  and  remit
20    prepaid  taxes  and has collected prepaid taxes which average
21    in excess  of  $25,000  per  month  during  the  preceding  2
22    complete  calendar  quarters,  shall  file  a return with the
23    Department as required by Section 2f and shall make  payments
24    to  the  Department on or before the 7th, 15th, 22nd and last
25    day of the month during which such liability is incurred.  If
26    the month during which such tax liability is  incurred  began
27    prior  to  the effective date of this amendatory Act of 1985,
28    each payment shall be in an amount not less than 22.5% of the
29    taxpayer's actual liability under Section 2d.  If  the  month
30    during  which  such  tax  liability  is incurred begins on or
31    after January 1, 1986, each payment shall  be  in  an  amount
32    equal  to  22.5%  of  the taxpayer's actual liability for the
33    month or 27.5% of  the  taxpayer's  liability  for  the  same
34    calendar  month of the preceding calendar year.  If the month
 
                            -69-               LRB9207230REdv
 1    during which such tax liability  is  incurred  begins  on  or
 2    after  January  1,  1987,  each payment shall be in an amount
 3    equal to 22.5% of the taxpayer's  actual  liability  for  the
 4    month  or  26.25%  of  the  taxpayer's liability for the same
 5    calendar month of the preceding year.   The  amount  of  such
 6    quarter  monthly payments shall be credited against the final
 7    tax liability of the taxpayer's return for that  month  filed
 8    under  this  Section or Section 2f, as the case may be.  Once
 9    applicable, the requirement of the making of quarter  monthly
10    payments  to  the Department pursuant to this paragraph shall
11    continue until such taxpayer's average  monthly  prepaid  tax
12    collections during the preceding 2 complete calendar quarters
13    is  $25,000  or less.  If any such quarter monthly payment is
14    not paid at the time or in the amount required, the  taxpayer
15    shall   be   liable   for  penalties  and  interest  on  such
16    difference, except insofar as  the  taxpayer  has  previously
17    made  payments  for  that  month  in  excess  of  the minimum
18    payments previously due.
19        If any payment provided for in this Section  exceeds  the
20    taxpayer's  liabilities  under this Act, the Use Tax Act, the
21    Service Occupation Tax Act and the Service Use  Tax  Act,  as
22    shown on an original monthly return, the Department shall, if
23    requested  by  the  taxpayer,  issue to the taxpayer a credit
24    memorandum no later than 30 days after the date  of  payment.
25    The  credit  evidenced  by  such  credit  memorandum  may  be
26    assigned  by  the  taxpayer  to a similar taxpayer under this
27    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
28    Service  Use Tax Act, in accordance with reasonable rules and
29    regulations to be prescribed by the Department.  If  no  such
30    request  is made, the taxpayer may credit such excess payment
31    against tax liability subsequently  to  be  remitted  to  the
32    Department  under  this  Act,  the  Use  Tax Act, the Service
33    Occupation Tax Act or the Service Use Tax Act, in  accordance
34    with  reasonable  rules  and  regulations  prescribed  by the
 
                            -70-               LRB9207230REdv
 1    Department.  If the Department subsequently  determined  that
 2    all  or  any part of the credit taken was not actually due to
 3    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
 4    shall be reduced by 2.1% or 1.75% of the  difference  between
 5    the  credit  taken  and  that actually due, and that taxpayer
 6    shall  be  liable  for  penalties  and   interest   on   such
 7    difference.
 8        If a retailer of motor fuel is entitled to a credit under
 9    Section 2d of this Act which exceeds the taxpayer's liability
10    to  the  Department  under  this  Act for the month which the
11    taxpayer is filing a return, the Department shall  issue  the
12    taxpayer a credit memorandum for the excess.
13        Beginning  January  1,  1990,  each  month the Department
14    shall pay into the Local Government Tax Fund, a special  fund
15    in  the  State  treasury  which  is  hereby  created, the net
16    revenue realized for the preceding month from the 1%  tax  on
17    sales  of  food for human consumption which is to be consumed
18    off the premises where  it  is  sold  (other  than  alcoholic
19    beverages,  soft  drinks and food which has been prepared for
20    immediate consumption) and prescription  and  nonprescription
21    medicines,  drugs,  medical  appliances  and  insulin,  urine
22    testing materials, syringes and needles used by diabetics.
23        Beginning  January  1,  1990,  each  month the Department
24    shall pay into the County and Mass Transit District  Fund,  a
25    special  fund  in the State treasury which is hereby created,
26    4% of the net revenue realized for the preceding  month  from
27    the 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 February 1, 2002,  each  month  the  Department
33    shall  pay into the County and Mass Transit District Fund 20%
34    of the net revenue realized for the preceding month from  the
 
                            -71-               LRB9207230REdv
 1    1.25%  rate  on  the  selling  price  of coal for use in this
 2    State.
 3        Beginning January 1,  1990,  each  month  the  Department
 4    shall  pay  into the Local Government Tax Fund 16% of the net
 5    revenue realized for  the  preceding  month  from  the  6.25%
 6    general  rate  on  the  selling  price  of  tangible personal
 7    property.
 8        Beginning August 1, 2000, each month the Department shall
 9    pay into the Local Government Tax Fund 80% of the net revenue
10    realized for the preceding month from the 1.25% rate  on  the
11    selling price of motor fuel and gasohol.
12        Beginning  February  1,  2002,  each month the Department
13    shall pay into the Local Government Tax Fund 80% of  the  net
14    revenue  realized for the preceding month from the 1.25% rate
15    on the selling price of coal for use in this State.
16        Of the remainder of the moneys received by the Department
17    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
18    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
19    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
20    into  the  Build Illinois Fund; provided, however, that if in
21    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22    as the case may be, of the moneys received by the  Department
23    and required to be paid into the Build Illinois Fund pursuant
24    to  this  Act, Section 9 of the Use Tax Act, Section 9 of the
25    Service Use Tax Act, and Section 9 of the Service  Occupation
26    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
27    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
28    moneys being hereinafter called the "Tax Act Amount", and (2)
29    the  amount  transferred  to the Build Illinois Fund from the
30    State and Local Sales Tax Reform Fund shall be less than  the
31    Annual  Specified  Amount (as hereinafter defined), an amount
32    equal to the difference shall be immediately  paid  into  the
33    Build  Illinois  Fund  from  other  moneys  received  by  the
34    Department  pursuant  to  the Tax Acts; the "Annual Specified
 
                            -72-               LRB9207230REdv
 1    Amount" means the amounts specified below  for  fiscal  years
 2    1986 through 1993:
 3             Fiscal Year              Annual Specified Amount
 4                 1986                       $54,800,000
 5                 1987                       $76,650,000
 6                 1988                       $80,480,000
 7                 1989                       $88,510,000
 8                 1990                       $115,330,000
 9                 1991                       $145,470,000
10                 1992                       $182,730,000
11                 1993                      $206,520,000;
12    and  means  the Certified Annual Debt Service Requirement (as
13    defined in Section 13 of the Build Illinois Bond Act) or  the
14    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
15    and each fiscal year thereafter; and further  provided,  that
16    if  on  the last business day of any month the sum of (1) the
17    Tax Act Amount  required  to  be  deposited  into  the  Build
18    Illinois  Bond Account in the Build Illinois Fund during such
19    month and (2) the amount transferred to  the  Build  Illinois
20    Fund  from  the  State  and Local Sales Tax Reform Fund shall
21    have been less than 1/12 of the Annual Specified  Amount,  an
22    amount equal to the difference shall be immediately paid into
23    the  Build  Illinois  Fund  from other moneys received by the
24    Department pursuant to the Tax Acts; and,  further  provided,
25    that  in  no  event  shall  the  payments  required under the
26    preceding proviso result in aggregate payments into the Build
27    Illinois Fund pursuant to this clause (b) for any fiscal year
28    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
29    the  Annual  Specified  Amount  for  such  fiscal  year.  The
30    amounts payable into the Build Illinois Fund under clause (b)
31    of the first sentence in this paragraph shall be payable only
32    until such time as the aggregate amount on deposit under each
33    trust  indenture  securing  Bonds  issued   and   outstanding
34    pursuant to the Build Illinois Bond Act is sufficient, taking
 
                            -73-               LRB9207230REdv
 1    into  account any future investment income, to fully provide,
 2    in accordance with such indenture, for the defeasance  of  or
 3    the  payment  of  the  principal  of,  premium,  if  any, and
 4    interest on the Bonds secured by such indenture  and  on  any
 5    Bonds expected to be issued thereafter and all fees and costs
 6    payable  with  respect  thereto,  all  as  certified  by  the
 7    Director  of  the  Bureau  of  the  Budget.   If  on the last
 8    business day of any month  in  which  Bonds  are  outstanding
 9    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
10    moneys deposited in the Build Illinois Bond  Account  in  the
11    Build  Illinois  Fund  in  such  month shall be less than the
12    amount required to be transferred  in  such  month  from  the
13    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
14    Retirement and Interest Fund pursuant to Section  13  of  the
15    Build  Illinois  Bond Act, an amount equal to such deficiency
16    shall be immediately paid from other moneys received  by  the
17    Department  pursuant  to  the  Tax Acts to the Build Illinois
18    Fund; provided, however, that any amounts paid to  the  Build
19    Illinois  Fund  in  any fiscal year pursuant to this sentence
20    shall be deemed to constitute payments pursuant to clause (b)
21    of the first sentence of this paragraph and shall reduce  the
22    amount  otherwise  payable  for  such fiscal year pursuant to
23    that clause (b).   The  moneys  received  by  the  Department
24    pursuant  to  this  Act and required to be deposited into the
25    Build Illinois Fund are subject  to  the  pledge,  claim  and
26    charge  set  forth  in  Section 12 of the Build Illinois Bond
27    Act.
28        Subject to payment of amounts  into  the  Build  Illinois
29    Fund  as  provided  in  the  preceding  paragraph  or  in any
30    amendment thereto hereafter enacted, the following  specified
31    monthly   installment   of   the   amount  requested  in  the
32    certificate of the Chairman  of  the  Metropolitan  Pier  and
33    Exposition  Authority  provided  under  Section  8.25f of the
34    State Finance Act, but not in excess of  sums  designated  as
 
                            -74-               LRB9207230REdv
 1    "Total  Deposit",  shall  be  deposited in the aggregate from
 2    collections under Section 9 of the Use Tax Act, Section 9  of
 3    the  Service Use Tax Act, Section 9 of the Service Occupation
 4    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 5    into  the  McCormick  Place  Expansion  Project  Fund  in the
 6    specified fiscal years.
 7             Fiscal Year                   Total Deposit
 8                 1993                            $0
 9                 1994                        53,000,000
10                 1995                        58,000,000
11                 1996                        61,000,000
12                 1997                        64,000,000
13                 1998                        68,000,000
14                 1999                        71,000,000
15                 2000                        75,000,000
16                 2001                        80,000,000
17                 2002                        84,000,000
18                 2003                        89,000,000
19                 2004                        93,000,000
20                 2005                        97,000,000
21                 2006                       102,000,000
22                 2007                       108,000,000
23                 2008                       115,000,000
24                 2009                       120,000,000
25                 2010                       126,000,000
26                 2011                       132,000,000
27                 2012                       138,000,000
28                 2013 and                   145,000,000
29        each fiscal year
30        thereafter that bonds
31        are outstanding under
32        Section 13.2 of the
33        Metropolitan Pier and
34        Exposition Authority
 
                            -75-               LRB9207230REdv
 1        Act, but not after fiscal year 2029.
 2        Beginning July 20, 1993 and in each month of each  fiscal
 3    year  thereafter,  one-eighth  of the amount requested in the
 4    certificate of the Chairman  of  the  Metropolitan  Pier  and
 5    Exposition  Authority  for  that fiscal year, less the amount
 6    deposited into the McCormick Place Expansion Project Fund  by
 7    the  State Treasurer in the respective month under subsection
 8    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 9    Authority  Act,  plus cumulative deficiencies in the deposits
10    required under this Section for previous  months  and  years,
11    shall be deposited into the McCormick Place Expansion Project
12    Fund,  until  the  full amount requested for the fiscal year,
13    but not in excess of the amount  specified  above  as  "Total
14    Deposit", has been deposited.
15        Subject  to  payment  of  amounts into the Build Illinois
16    Fund and the McCormick Place Expansion Project Fund  pursuant
17    to  the  preceding  paragraphs  or  in  any amendment thereto
18    hereafter enacted, each month the Department shall  pay  into
19    the  Local  Government  Distributive  Fund  0.4%  of  the net
20    revenue realized for the preceding month from the 5%  general
21    rate  or  0.4%  of  80%  of  the net revenue realized for the
22    preceding month from the 6.25% general rate, as the case  may
23    be,  on the selling price of tangible personal property which
24    amount shall, subject to  appropriation,  be  distributed  as
25    provided  in  Section 2 of the State Revenue Sharing Act.  No
26    payments or distributions pursuant to this paragraph shall be
27    made if the  tax  imposed  by  this  Act  on  photoprocessing
28    products  is  declared  unconstitutional,  or if the proceeds
29    from such tax are unavailable  for  distribution  because  of
30    litigation.
31        Subject  to  payment  of  amounts into the Build Illinois
32    Fund, the McCormick Place Expansion  Project  Fund,  and  the
33    Local  Government Distributive Fund pursuant to the preceding
34    paragraphs or in any amendments  thereto  hereafter  enacted,
 
                            -76-               LRB9207230REdv
 1    beginning  July  1, 1993, the Department shall each month pay
 2    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 3    revenue  realized  for  the  preceding  month  from the 6.25%
 4    general rate  on  the  selling  price  of  tangible  personal
 5    property.
 6        Of the remainder of the moneys received by the Department
 7    pursuant  to  this  Act,  75%  thereof shall be paid into the
 8    State Treasury and 25% shall be reserved in a special account
 9    and used only for the transfer to the Common School  Fund  as
10    part of the monthly transfer from the General Revenue Fund in
11    accordance with Section 8a of the State Finance Act.
12        The  Department  may,  upon  separate written notice to a
13    taxpayer, require the taxpayer to prepare and file  with  the
14    Department  on a form prescribed by the Department within not
15    less than 60 days after  receipt  of  the  notice  an  annual
16    information  return for the tax year specified in the notice.
17    Such  annual  return  to  the  Department  shall  include   a
18    statement  of  gross receipts as shown by the retailer's last
19    Federal income tax return.  If  the  total  receipts  of  the
20    business  as reported in the Federal income tax return do not
21    agree with the gross receipts reported to the  Department  of
22    Revenue for the same period, the retailer shall attach to his
23    annual  return  a  schedule showing a reconciliation of the 2
24    amounts and the reasons for the difference.   The  retailer's
25    annual  return to the Department shall also disclose the cost
26    of goods sold by the retailer during the year covered by such
27    return, opening and closing inventories  of  such  goods  for
28    such year, costs of goods used from stock or taken from stock
29    and  given  away  by  the  retailer during such year, payroll
30    information of the retailer's business during such  year  and
31    any  additional  reasonable  information which the Department
32    deems would be helpful in determining  the  accuracy  of  the
33    monthly,  quarterly  or annual returns filed by such retailer
34    as provided for in this Section.
 
                            -77-               LRB9207230REdv
 1        If the annual information return required by this Section
 2    is not filed when and as  required,  the  taxpayer  shall  be
 3    liable as follows:
 4             (i)  Until  January  1,  1994, the taxpayer shall be
 5        liable for a penalty equal to 1/6 of 1% of  the  tax  due
 6        from such taxpayer under this Act during the period to be
 7        covered  by  the annual return for each month or fraction
 8        of a month until such return is filed  as  required,  the
 9        penalty  to  be assessed and collected in the same manner
10        as any other penalty provided for in this Act.
11             (ii)  On and after January  1,  1994,  the  taxpayer
12        shall be liable for a penalty as described in Section 3-4
13        of the Uniform Penalty and Interest Act.
14        The chief executive officer, proprietor, owner or highest
15    ranking  manager  shall sign the annual return to certify the
16    accuracy of the information contained therein.    Any  person
17    who  willfully  signs  the  annual return containing false or
18    inaccurate  information  shall  be  guilty  of  perjury   and
19    punished  accordingly.   The annual return form prescribed by
20    the Department  shall  include  a  warning  that  the  person
21    signing the return may be liable for perjury.
22        The  provisions  of this Section concerning the filing of
23    an annual information return do not apply to a  retailer  who
24    is  not required to file an income tax return with the United
25    States Government.
26        As soon as possible after the first day  of  each  month,
27    upon   certification   of  the  Department  of  Revenue,  the
28    Comptroller shall order transferred and the  Treasurer  shall
29    transfer  from the General Revenue Fund to the Motor Fuel Tax
30    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
31    realized  under  this  Act  for  the  second preceding month.
32    Beginning April 1, 2000, this transfer is no longer  required
33    and shall not be made.
34        Net  revenue  realized  for  a month shall be the revenue
 
                            -78-               LRB9207230REdv
 1    collected by the State pursuant to this Act, less the  amount
 2    paid  out  during  that  month  as  refunds  to taxpayers for
 3    overpayment of liability.
 4        For greater simplicity of administration,  manufacturers,
 5    importers  and  wholesalers whose products are sold at retail
 6    in Illinois by numerous retailers, and who wish to do so, may
 7    assume the responsibility for accounting and  paying  to  the
 8    Department  all  tax  accruing under this Act with respect to
 9    such sales, if the retailers who are  affected  do  not  make
10    written objection to the Department to this arrangement.
11        Any  person  who  promotes,  organizes,  provides  retail
12    selling  space  for concessionaires or other types of sellers
13    at the Illinois State Fair, DuQuoin State Fair, county fairs,
14    local fairs, art shows, flea markets and similar  exhibitions
15    or  events,  including  any  transient merchant as defined by
16    Section 2 of the Transient Merchant Act of 1987, is  required
17    to  file  a  report with the Department providing the name of
18    the merchant's business, the name of the  person  or  persons
19    engaged  in  merchant's  business,  the permanent address and
20    Illinois Retailers Occupation Tax Registration Number of  the
21    merchant,  the  dates  and  location  of  the event and other
22    reasonable information that the Department may require.   The
23    report must be filed not later than the 20th day of the month
24    next  following  the month during which the event with retail
25    sales was held.  Any  person  who  fails  to  file  a  report
26    required  by  this  Section commits a business offense and is
27    subject to a fine not to exceed $250.
28        Any person engaged in the business  of  selling  tangible
29    personal property at retail as a concessionaire or other type
30    of  seller  at  the  Illinois  State  Fair, county fairs, art
31    shows, flea markets and similar exhibitions or events, or any
32    transient merchants, as defined by Section 2 of the Transient
33    Merchant Act of 1987, may be required to make a daily  report
34    of  the  amount of such sales to the Department and to make a
 
                            -79-               LRB9207230REdv
 1    daily payment of the full amount of tax due.  The  Department
 2    shall  impose  this requirement when it finds that there is a
 3    significant risk of loss of revenue to the State at  such  an
 4    exhibition  or  event.   Such  a  finding  shall  be based on
 5    evidence that a  substantial  number  of  concessionaires  or
 6    other  sellers  who  are  not  residents  of Illinois will be
 7    engaging  in  the  business  of  selling  tangible   personal
 8    property  at  retail  at  the  exhibition  or event, or other
 9    evidence of a significant risk of  loss  of  revenue  to  the
10    State.  The Department shall notify concessionaires and other
11    sellers  affected  by the imposition of this requirement.  In
12    the  absence  of  notification   by   the   Department,   the
13    concessionaires and other sellers shall file their returns as
14    otherwise required in this Section.
15    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
16    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
17    7-12-99; 91-541, eff. 8-13-99; 91-872, eff.  7-1-00;  91-901,
18    eff. 1-1-01; revised 1-15-01.)

19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.

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