Bill Text: IL HB0160 | 2017-2018 | 100th General Assembly | Engrossed
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the earned income tax credit.
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB0160 Detail]
Download: Illinois-2017-HB0160-Engrossed.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | ARTICLE 3. KEEP ILLINOIS BUSINESS ACT | ||||||
5 | Section 3-1. Short title. This Act may be cited as the Keep | ||||||
6 | Illinois Business Act.
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7 | Section 3-5. Purpose. The purpose of this Act is to | ||||||
8 | encourage businesses with primary business operations in the | ||||||
9 | State of Illinois to remain in this State by removing and | ||||||
10 | recouping any economic development assistance or benefit | ||||||
11 | provided to those businesses by the State should those | ||||||
12 | businesses decide to relocate jobs out-of-State.
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13 | Section 3-10. Definitions. As used in this Act:
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14 | "Economic development assistance" means (1) tax credits | ||||||
15 | and tax exemptions given as an incentive to a recipient | ||||||
16 | business organization under an initial certification or an | ||||||
17 | initial designation made by the Department of Commerce and | ||||||
18 | Economic Opportunity under the Economic Development for a | ||||||
19 | Growing Economy Tax Credit Act, River Edge Redevelopment Zone | ||||||
20 | Act, and the Illinois Enterprise Zone Act, including the High | ||||||
21 | Impact Business program; (2) grants or loans given to a |
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1 | recipient as an incentive to a business organization under the | ||||||
2 | River Edge Redevelopment Zone Act, Large Business Development | ||||||
3 | Program, the Business Development Public Infrastructure | ||||||
4 | Program, or the Industrial Training Program; (3) the State | ||||||
5 | Treasurer's Economic Program Loans; (4) the Illinois | ||||||
6 | Department of Transportation Economic Development Program; (5) | ||||||
7 | all successor and subsequent programs and tax credits designed | ||||||
8 | to promote business relocations and expansions; (6) any | ||||||
9 | assistance provided by the Illinois Emergency Employment | ||||||
10 | Program under the Illinois Emergency Development Act; and (7) | ||||||
11 | any other economic incentive, benefit, assistance, credit, | ||||||
12 | loan, or grant provided by a State granting agency to a | ||||||
13 | recipient business with primary business operations in this | ||||||
14 | State.
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15 | "Recipient business" means any corporation, limited | ||||||
16 | liability company, partnership, joint venture, association, | ||||||
17 | sole proprietorship, or other legally recognized entity with | ||||||
18 | primary business operations in this State that receives | ||||||
19 | economic development assistance.
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20 | "State agency" has the meaning provided in Section 1-7 of | ||||||
21 | the Illinois State Auditing Act. | ||||||
22 | "State granting agency" means any State department or State | ||||||
23 | agency that provides economic development assistance to a | ||||||
24 | recipient business.
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25 | Section 3-15. Recovery of economic development assistance.
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1 | (a) Subject to the procedures outlined in this Section, any | ||||||
2 | recipient business that chooses to move all or part of its | ||||||
3 | business operations and the jobs created by its business | ||||||
4 | out-of-State shall be deemed to no longer qualify for State | ||||||
5 | economic development assistance, and shall be required to pay | ||||||
6 | to the relevant State granting agency the full amount of any | ||||||
7 | economic development assistance it received.
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8 | (b) Whenever a State granting agency believes that the | ||||||
9 | economic development assistance it provided to a recipient | ||||||
10 | business is subject to recovery, the State granting agency | ||||||
11 | shall provide the recipient business the opportunity for at | ||||||
12 | least one informal hearing to determine the facts and issues, | ||||||
13 | and to resolve any conflicts as amicably as possible before | ||||||
14 | taking any formal recovery actions.
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15 | (c) If a State granting agency determines that economic | ||||||
16 | development assistance is to be recovered, then, prior to | ||||||
17 | taking any action to recover, the State granting agency shall | ||||||
18 | provide the recipient business with a written notice of the | ||||||
19 | intended recovery. This notice shall identify the funds and the | ||||||
20 | amount to be recovered and the specific facts which permit | ||||||
21 | recovery.
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22 | (d) A recipient business shall have 35 days from the | ||||||
23 | receipt of the notice required in subsection (c) of this | ||||||
24 | Section to request a hearing to show why recovery is not | ||||||
25 | justified or proper. If a recipient business requests a hearing | ||||||
26 | under this subsection (d), then:
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1 | (1) the State granting agency shall hold a hearing | ||||||
2 | before the Director of that agency, or his or her designee, | ||||||
3 | at which a representative of the recipient business may | ||||||
4 | present an argument for why recovery should not be | ||||||
5 | permitted; and
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6 | (2) after the conclusion of the hearing, the Director | ||||||
7 | of the State granting agency, or his or her designee, shall | ||||||
8 | issue a written final recovery order and send a copy of the | ||||||
9 | order to the recipient business.
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10 | (e) A recipient business may seek judicial review of any | ||||||
11 | final recovery order under the provisions of the Administrative | ||||||
12 | Review Law.
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13 | (f) If a recipient business requests a hearing under | ||||||
14 | subsection (d) of this Section, then the State granting agency | ||||||
15 | may not take any action of recovery until at least 35 days | ||||||
16 | after the State granting agency has issued a final recovery | ||||||
17 | order under the requirements of subsection (d) of this Section. | ||||||
18 | If a recipient business does not request a hearing as permitted | ||||||
19 | in subsection (d) of this Section, then the State granting | ||||||
20 | agency may proceed with recovery of the economic development | ||||||
21 | assistance amount specified in the notice issued under the | ||||||
22 | requirements of subsection (c) of this Section, at any time | ||||||
23 | after the expiration of the 35-day request period established | ||||||
24 | in subsection (d) of this Section.
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25 | (g) Any notice or mailing required or permitted by this | ||||||
26 | Section shall be deemed received 5 days after the notice or |
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1 | mailing is deposited in the United States mail, properly | ||||||
2 | addressed with the current business address of the recipient | ||||||
3 | business and with sufficient U.S. postage affixed.
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4 | ARTICLE 4. NEW MARKETS DEVELOPMENT PROGRAM | ||||||
5 | Section 4-5. The New Markets Development Program Act is | ||||||
6 | amended by changing Sections 5, 25, 40, and 50 and by adding | ||||||
7 | Sections 43 and 55 as follows:
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8 | (20 ILCS 663/5)
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9 | Sec. 5. Definitions. As used in this Act:
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10 | "Applicable percentage" means 0% for each of the first 2 | ||||||
11 | credit allowance dates, 7% for the third credit allowance date, | ||||||
12 | and 8% for the next 4 credit allowance dates. | ||||||
13 | "Credit allowance date" means with respect to any qualified | ||||||
14 | equity investment:
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15 | (1) the date on which the investment is initially made; | ||||||
16 | and | ||||||
17 | (2) each of the 6 anniversary dates of that date | ||||||
18 | thereafter. | ||||||
19 | "Department" means the Department of Commerce and Economic | ||||||
20 | Opportunity. | ||||||
21 | "Long-term debt security" means any debt instrument issued | ||||||
22 | by a qualified community development entity, at par value or a | ||||||
23 | premium, with an original maturity date of at least 7 years |
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1 | from the date of its issuance, with no acceleration of | ||||||
2 | repayment, amortization, or prepayment features prior to its | ||||||
3 | original maturity date. Cumulative cash payments of interest on | ||||||
4 | the qualified debt instrument during the period commencing with | ||||||
5 | the issuance of the qualified debt instrument and ending with | ||||||
6 | the seventh anniversary of its issuance shall not exceed the | ||||||
7 | sum of such cash interest payments and the cumulative net | ||||||
8 | income of the issuing community development entity for the same | ||||||
9 | period. This definition in no way limits the holder's ability | ||||||
10 | to accelerate payments on the debt instrument in situations | ||||||
11 | where the issuer has defaulted on covenants designed to ensure | ||||||
12 | compliance with this Act or Section 45D of the Internal Revenue | ||||||
13 | Code of 1986, as amended. | ||||||
14 | "Purchase price" means the amount paid to the issuer of a | ||||||
15 | qualified equity investment for that qualified equity | ||||||
16 | investment. | ||||||
17 | "Qualified active low-income community business" has the | ||||||
18 | meaning given to that term in Section 45D of the Internal | ||||||
19 | Revenue Code of 1986, as amended; except that any business that | ||||||
20 | derives or projects to derive 15% or more of its annual revenue | ||||||
21 | from the rental or sale of real estate is not considered to be | ||||||
22 | a qualified active low-income community business. This | ||||||
23 | exception does not apply to a business that is controlled by or | ||||||
24 | under common control with another business if the second | ||||||
25 | business (i) does not derive or project to derive 15% or more | ||||||
26 | of its annual revenue from the rental or sale of real estate |
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1 | and (ii) is the primary tenant of the real estate leased from | ||||||
2 | the initial business. A business shall be considered a | ||||||
3 | qualified active low-income community business for the | ||||||
4 | duration of the qualified community development entity's | ||||||
5 | investment in or loan to the business if the entity reasonably | ||||||
6 | expects, at the time it makes the investment or loan, that the | ||||||
7 | business will continue to satisfy the requirements for being a | ||||||
8 | qualified active low-income community business throughout the | ||||||
9 | entire period of the investment or loan. | ||||||
10 | "Qualified community development entity" has the meaning | ||||||
11 | given to that term in Section 45D of the Internal Revenue Code | ||||||
12 | of 1986, as amended; provided that such entity has entered | ||||||
13 | into, or is controlled by an entity that has entered into, an | ||||||
14 | allocation agreement with the Community Development Financial | ||||||
15 | Institutions Fund of the U.S. Treasury Department with respect | ||||||
16 | to credits authorized by Section 45D of the Internal Revenue | ||||||
17 | Code of 1986, as amended, that includes the State of Illinois | ||||||
18 | within the service area set forth in that allocation agreement. | ||||||
19 | "Qualified equity investment" means any equity investment | ||||||
20 | in, or long-term debt security issued by, a qualified community | ||||||
21 | development entity that:
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22 | (1) is acquired after the effective date of this Act at | ||||||
23 | its original issuance solely in exchange for cash; | ||||||
24 | (2) with respect to qualified equity investments made | ||||||
25 | before January 1, 2017, has at least 85% of its cash | ||||||
26 | purchase price used by the issuer to make qualified |
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1 | low-income community investments in the State of Illinois , | ||||||
2 | and, with respect to qualified equity investments made on | ||||||
3 | or after January 1, 2017, has 100% of the cash purchase | ||||||
4 | price used by the issuer to make qualified low-income | ||||||
5 | community investments in the State of Illinois ; and | ||||||
6 | (3) is designated by the issuer as a qualified equity | ||||||
7 | investment under this
Act ; with respect to qualified equity | ||||||
8 | investments made on or after January 1, 2017, is designated | ||||||
9 | by the issuer as a qualified equity investment under | ||||||
10 | Section 45D of the Internal Revenue Code of 1986, as | ||||||
11 | amended; and is certified by the Department as not | ||||||
12 | exceeding the limitation contained in Section 20. | ||||||
13 | This term includes any qualified equity investment that | ||||||
14 | does not meet the provisions of item (1) of this definition if | ||||||
15 | the investment was a qualified equity investment in the hands | ||||||
16 | of a prior holder. | ||||||
17 | "Qualified low-income community investment" means any | ||||||
18 | capital or equity investment in, or loan to, any qualified | ||||||
19 | active low-income community business. With respect to any one | ||||||
20 | qualified active low-income community business, the maximum | ||||||
21 | amount of qualified low-income community investments made in | ||||||
22 | that business, on a collective basis with all of its affiliates | ||||||
23 | that may be counted towards the satisfaction of paragraph (2) | ||||||
24 | of the definition of qualified equity investment, shall be | ||||||
25 | $10,000,000 whether issued to one or several qualified | ||||||
26 | community development entities. |
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1 | "Tax credit" means a credit against any income, franchise, | ||||||
2 | or insurance premium taxes , including insurance retaliatory | ||||||
3 | taxes, otherwise due under Illinois law.
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4 | "Taxpayer" means any individual or entity subject to any | ||||||
5 | income, franchise, or insurance premium tax under Illinois law.
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6 | (Source: P.A. 95-1024, eff. 12-31-08.)
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7 | (20 ILCS 663/25)
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8 | Sec. 25. Certification of qualified equity investments. | ||||||
9 | (a) A qualified community development entity that seeks to | ||||||
10 | have an equity investment or long-term debt security designated | ||||||
11 | as a qualified equity investment and eligible for tax credits | ||||||
12 | under this Section shall apply to the Department. The qualified | ||||||
13 | community development entity must submit an application on a | ||||||
14 | form that the Department provides that includes: | ||||||
15 | (1) The name, address, tax identification number of the | ||||||
16 | entity, and evidence of the entity's certification as a | ||||||
17 | qualified community development entity. | ||||||
18 | (2) A copy of the allocation agreement executed by the | ||||||
19 | entity, or its controlling entity, and the Community | ||||||
20 | Development Financial Institutions Fund. | ||||||
21 | (3) A certificate executed by an executive officer of | ||||||
22 | the entity attesting that the allocation agreement remains | ||||||
23 | in effect and has not been revoked or cancelled by the | ||||||
24 | Community Development Financial Institutions Fund. | ||||||
25 | (4) A description of the proposed amount, structure, |
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1 | and purchaser of the equity investment or long-term debt | ||||||
2 | security. | ||||||
3 | (5) The name and tax identification number of any | ||||||
4 | taxpayer eligible to utilize tax credits earned as a result | ||||||
5 | of the issuance of the qualified equity investment. | ||||||
6 | (6) Information regarding the proposed use of proceeds | ||||||
7 | from the issuance of the qualified equity investment. | ||||||
8 | (7) A nonrefundable application fee of $5,000. This fee | ||||||
9 | shall be paid to the Department and shall be required of | ||||||
10 | each application submitted. | ||||||
11 | (8) With respect to qualified equity investments made | ||||||
12 | on or after January 1, 2017, the amount of qualified equity | ||||||
13 | investment authority the applicant agrees to designate as a | ||||||
14 | federal qualified equity investment under Section 45D of | ||||||
15 | the Internal Revenue Code, including a copy of the screen | ||||||
16 | shot from the Community Development Financial Institutions | ||||||
17 | Fund's Allocation Tracking System of the applicant's | ||||||
18 | remaining federal qualified equity investment authority. | ||||||
19 | (b) Within 30 days after receipt of a completed application | ||||||
20 | containing the information necessary for the Department to | ||||||
21 | certify a potential qualified equity investment, including the | ||||||
22 | payment of the application fee, the Department shall grant or | ||||||
23 | deny the application in full or in part. If the Department | ||||||
24 | denies any part of the application, it shall inform the | ||||||
25 | qualified community development entity of the grounds for the | ||||||
26 | denial. If the qualified community development entity provides |
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1 | any additional information required by the Department or | ||||||
2 | otherwise completes its application within 15 days of the | ||||||
3 | notice of denial, the application shall be considered completed | ||||||
4 | as of the original date of submission. If the qualified | ||||||
5 | community development entity fails to provide the information | ||||||
6 | or complete its application within the 15-day period, the | ||||||
7 | application remains denied and must be resubmitted in full with | ||||||
8 | a new submission date. | ||||||
9 | (c) If the application is deemed complete, the Department | ||||||
10 | shall certify the proposed equity investment or long-term debt | ||||||
11 | security as a qualified equity investment that is eligible for | ||||||
12 | tax credits under this Section, subject to the limitations | ||||||
13 | contained in Section 20. The Department shall provide written | ||||||
14 | notice of the certification to the qualified community | ||||||
15 | development entity. The notice shall include the names of those | ||||||
16 | taxpayers who are eligible to utilize the credits and their | ||||||
17 | respective credit amounts. If the names of the taxpayers who | ||||||
18 | are eligible to utilize the credits change due to a transfer of | ||||||
19 | a qualified equity investment or a change in an allocation | ||||||
20 | pursuant to Section 15, the qualified community development | ||||||
21 | entity shall notify the Department of such change. | ||||||
22 | (d) With respect to applications received before January 1, | ||||||
23 | 2017, the The Department shall certify qualified equity | ||||||
24 | investments in the order applications are received by the | ||||||
25 | Department. Applications received on the same day shall be | ||||||
26 | deemed to have been received simultaneously. For applications |
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1 | received on the same day and deemed complete, the Department | ||||||
2 | shall certify, consistent with remaining tax credit capacity, | ||||||
3 | qualified equity investments in proportionate percentages | ||||||
4 | based upon the ratio of the amount of qualified equity | ||||||
5 | investment requested in an application to the total amount of | ||||||
6 | qualified equity investments requested in all applications | ||||||
7 | received on the same day. | ||||||
8 | (d-5) With respect to applications received on or after | ||||||
9 | January 1, 2017, the Department shall certify applications by | ||||||
10 | applicants that agree to designate qualified equity | ||||||
11 | investments as federal qualified equity investments in | ||||||
12 | accordance with item (8) of subsection (a) of this Section in | ||||||
13 | proportionate percentages based upon the ratio of the amount of | ||||||
14 | qualified equity investments requested in an application to be | ||||||
15 | designated as federal qualified equity investments to the total | ||||||
16 | amount of qualified equity investments to be designated as | ||||||
17 | federal qualified equity investments requested in all | ||||||
18 | applications received on the same day. | ||||||
19 | (d-10) With respect to applications received on or after | ||||||
20 | January 1, 2017, after complying with subsection (d-5), the | ||||||
21 | Department shall certify the qualified equity investments of | ||||||
22 | all other applicants, including the remaining qualified equity | ||||||
23 | investment authority requested by applicants not designated as | ||||||
24 | federal qualified equity investments in accordance with item | ||||||
25 | (8) of subsection (a) of this Section, in proportionate | ||||||
26 | percentages based upon the ratio of the amount of qualified |
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1 | equity investments requested in the applications to the total | ||||||
2 | amount of qualified equity investments requested in all | ||||||
3 | applications received on the same day. | ||||||
4 | (e) Once the Department has certified qualified equity | ||||||
5 | investments that, on a cumulative basis, are eligible for | ||||||
6 | $20,000,000 in tax credits, the Department may not certify any | ||||||
7 | more qualified equity investments. If a pending request cannot | ||||||
8 | be fully certified, the Department shall certify the portion | ||||||
9 | that may be certified unless the qualified community | ||||||
10 | development entity elects to withdraw its request rather than | ||||||
11 | receive partial credit. | ||||||
12 | (f) Within 30 days after receiving notice of certification, | ||||||
13 | the qualified community development entity shall (i) issue the | ||||||
14 | qualified equity investment and receive cash in the amount of | ||||||
15 | the certified amount and (ii) with respect to qualified equity | ||||||
16 | investments made on or after January 1, 2017, if applicable, | ||||||
17 | designate the required amount of qualified equity investment | ||||||
18 | authority as a federal qualified equity investment . The | ||||||
19 | qualified community development entity must provide the | ||||||
20 | Department with evidence of the receipt of the cash investment | ||||||
21 | within 10 business days after receipt and, with respect to | ||||||
22 | qualified equity investments made on or after January 1, 2017, | ||||||
23 | if applicable, provide evidence that the required amount of | ||||||
24 | qualified equity investment authority was designated as a | ||||||
25 | federal qualified equity investment . If the qualified | ||||||
26 | community development entity does not receive the cash |
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1 | investment and issue the qualified equity investment within 30 | ||||||
2 | days following receipt of the certification notice, the | ||||||
3 | certification shall lapse and the entity may not issue the | ||||||
4 | qualified equity investment without reapplying to the | ||||||
5 | Department for certification. A certification that lapses | ||||||
6 | reverts back to the Department and may be reissued only in | ||||||
7 | accordance with the application process outline in this Section | ||||||
8 | 25.
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9 | (g) Allocation rounds enabled by this Act shall be applied | ||||||
10 | for according to the following schedule: | ||||||
11 | (1) on January 2, 2019, $125,000,000 of qualified | ||||||
12 | equity investments; and | ||||||
13 | (2) on January 2, 2020, $125,000,000 of qualified | ||||||
14 | equity investments. | ||||||
15 | (Source: P.A. 95-1024, eff. 12-31-08; 96-939, eff. 7-1-10.)
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16 | (20 ILCS 663/40)
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17 | Sec. 40. Recapture. The Department of Revenue shall | ||||||
18 | recapture, from the taxpayer that claimed the credit on a | ||||||
19 | return, the tax credit allowed under this Act if: | ||||||
20 | (1) any amount of the federal tax credit available with | ||||||
21 | respect to a qualified equity investment that is eligible | ||||||
22 | for a tax credit under this Act is recaptured under Section | ||||||
23 | 45D of the Internal Revenue Code of 1986, as amended. In | ||||||
24 | that case, the Department of Revenue's recapture shall be | ||||||
25 | proportionate to the federal recapture with respect to that |
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1 | qualified equity investment; | ||||||
2 | (2) the issuer redeems or makes principal repayment | ||||||
3 | with respect to a qualified equity investment prior to the | ||||||
4 | 7th anniversary of the issuance of the qualified equity | ||||||
5 | investment. In that case, the Department of Revenue's | ||||||
6 | recapture shall be proportionate to the amount of the | ||||||
7 | redemption or repayment with respect to the qualified | ||||||
8 | equity investment; or | ||||||
9 | (3) the issuer fails to invest at least 85% of the cash | ||||||
10 | purchase price of the qualified equity investment with | ||||||
11 | respect to qualified equity investments made before | ||||||
12 | January 1, 2017 and 100% of the cash purchase price of the | ||||||
13 | qualified equity investment with respect to qualified | ||||||
14 | equity investments made on or after January 1, 2017 in | ||||||
15 | qualified low-income community investments in the State of | ||||||
16 | Illinois within 12 months of the issuance of the qualified | ||||||
17 | equity investment and maintain such level of investment in | ||||||
18 | qualified low-income community investments in Illinois | ||||||
19 | until the last credit allowance date for such qualified | ||||||
20 | equity investment ; or . | ||||||
21 | (4) with respect to qualified equity investments made | ||||||
22 | on or after January 1, 2017, the issuer violates Section 43 | ||||||
23 | of this Act. | ||||||
24 | For purposes of this Section, an investment shall be | ||||||
25 | considered held by an issuer even if the investment has been | ||||||
26 | sold or repaid; provided that the issuer reinvests an amount |
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1 | equal to the capital returned to or recovered by the issuer | ||||||
2 | from the original investment, exclusive of any profits | ||||||
3 | realized, in another qualified low-income community investment | ||||||
4 | in this State within 12 months after the receipt of that | ||||||
5 | capital. An issuer is not required to reinvest capital returned | ||||||
6 | from qualified low-income community investments after the 6th | ||||||
7 | anniversary of the issuance of the qualified equity investment, | ||||||
8 | the proceeds of which were used to make the qualified | ||||||
9 | low-income community investment, and the qualified low-income | ||||||
10 | community investment shall be considered held by the issuer | ||||||
11 | through the 7th anniversary of the qualified equity | ||||||
12 | investment's issuance. | ||||||
13 | The Department of Revenue shall provide notice to the | ||||||
14 | qualified community development entity of any proposed | ||||||
15 | recapture of tax credits pursuant to this Section. The entity | ||||||
16 | shall have 90 days to cure any deficiency indicated in the | ||||||
17 | Department of Revenue's original recapture notice and avoid | ||||||
18 | such recapture. If the entity fails or is unable to cure such | ||||||
19 | deficiency with the 90-day period, the Department of Revenue | ||||||
20 | shall provide the entity and the taxpayer from whom the credit | ||||||
21 | is to be recaptured with a final order of recapture. Any tax | ||||||
22 | credit for which a final recapture order has been issued shall | ||||||
23 | be recaptured by the Department of Revenue from the taxpayer | ||||||
24 | who claimed the tax credit on a tax return.
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25 | (Source: P.A. 95-1024, eff. 12-31-08.)
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1 | (20 ILCS 663/43 new) | ||||||
2 | Sec. 43. Prohibited activities and interests. For | ||||||
3 | qualified equity investments made on or after January 1, 2017, | ||||||
4 | no qualified active low-income community business that | ||||||
5 | receives a qualified low-income community investment from a | ||||||
6 | qualified community development entity that issues qualified | ||||||
7 | equity investments under this Act, or any affiliates of such a | ||||||
8 | qualified active low-income community business, may directly | ||||||
9 | or indirectly (i) own or have the right to acquire an ownership | ||||||
10 | interest in a qualified community development entity or member | ||||||
11 | or affiliate of a qualified community development entity, | ||||||
12 | including, but not limited to, a holder of a qualified equity | ||||||
13 | investment issued by the qualified community development | ||||||
14 | entity or (ii) loan to or invest in a qualified community | ||||||
15 | development entity or member or affiliate of a qualified | ||||||
16 | community development entity, including, but not limited to, a | ||||||
17 | holder of a qualified equity investment issued by a qualified | ||||||
18 | community development entity, where the proceeds of such loan | ||||||
19 | or investment are directly or indirectly used to fund or | ||||||
20 | refinance the purchase of a qualified equity investment under | ||||||
21 | this Act. For purposes of this Section, "affiliate" means an | ||||||
22 | entity that directly, or indirectly through one or more | ||||||
23 | intermediaries, controls, is controlled by, or is under common | ||||||
24 | control with another entity. For purposes of this Section, an | ||||||
25 | entity is "controlled by" another entity if the controlling | ||||||
26 | person holds, directly or indirectly, the majority voting or |
| |||||||
| |||||||
1 | ownership interest in the controlled person or has control over | ||||||
2 | the day-to-day operations of the controlled person by contract | ||||||
3 | or law, provided that a qualified community development entity | ||||||
4 | shall not be considered an affiliate of a qualified active | ||||||
5 | low-income community business solely as a result of its | ||||||
6 | qualified low-income community investment in such business. | ||||||
7 | This Section is not intended to affect ownership or affiliate | ||||||
8 | interests that arise following the sixth anniversary of the | ||||||
9 | issuance of the qualified equity investment.
| ||||||
10 | (20 ILCS 663/50)
| ||||||
11 | Sec. 50. Sunset. No qualified equity investment shall be | ||||||
12 | certified on or after June 30, 2021. For fiscal years following | ||||||
13 | fiscal year 2017, qualified equity investments shall not be | ||||||
14 | made under this Act unless reauthorization is made pursuant to | ||||||
15 | this Section. For all fiscal years following fiscal year 2017, | ||||||
16 | unless the General Assembly adopts a joint resolution granting | ||||||
17 | authority to the Department to approve qualified equity | ||||||
18 | investments for the Illinois new markets development program | ||||||
19 | and clearly describing the amount of tax credits available for | ||||||
20 | the next fiscal year, or otherwise complies with the provisions | ||||||
21 | of this Section, no qualified equity investments may be | ||||||
22 | permitted to be made under this Act. The amount of available | ||||||
23 | tax credits contained in such a resolution shall not exceed the | ||||||
24 | limitation provided under Section 20. Nothing in this Section | ||||||
25 | precludes a taxpayer who makes a qualified equity investment |
| |||||||
| |||||||
1 | prior to the expiration of authority to make qualified equity | ||||||
2 | investments from claiming tax credits relating to that | ||||||
3 | qualified equity investment for each applicable credit | ||||||
4 | allowance date.
| ||||||
5 | (Source: P.A. 97-636, eff. 6-1-12 .)
| ||||||
6 | (20 ILCS 663/55 new) | ||||||
7 | Sec. 55. Annual report. Each qualified community | ||||||
8 | development entity shall submit an annual report to the | ||||||
9 | Department within 45 days after the beginning of each calendar | ||||||
10 | year during the compliance period. No annual report shall be | ||||||
11 | due prior to the first anniversary of the initial credit | ||||||
12 | allowance date. The report shall include, but is not limited | ||||||
13 | to, the following: | ||||||
14 | (1) an attestation from an authorized officer of the | ||||||
15 | qualified community development entity that the entity has | ||||||
16 | not been the subject of any investigation by a government | ||||||
17 | agency relating to tax credits or financial services during | ||||||
18 | the preceding calendar year; | ||||||
19 | (2) information with respect to all qualified | ||||||
20 | low-income community investments made by the qualified | ||||||
21 | community development entity, including: | ||||||
22 | (A) the date and amount of, and bank statements or | ||||||
23 | wire transfer reports documenting, such qualified | ||||||
24 | low-income community investments; | ||||||
25 | (B) the name, address, and EIN of each qualified |
| |||||||
| |||||||
1 | active low-income community business funded by the | ||||||
2 | qualified community development entity, the number of | ||||||
3 | persons employed by such business at the time of the | ||||||
4 | initial investment, and a brief description of the | ||||||
5 | business, the financing, and community benefits of the | ||||||
6 | financing; and | ||||||
7 | (C) the number of employment positions maintained | ||||||
8 | by each qualified active low-income community business | ||||||
9 | as of the date of report or the end of the preceding | ||||||
10 | calendar year and the average annual salaries of such | ||||||
11 | positions; and | ||||||
12 | (D) the total number of employment positions | ||||||
13 | created and retained as a result of qualified | ||||||
14 | low-income community investments and the average | ||||||
15 | annual salaries of those positions; and | ||||||
16 | (3) any changes with respect to the taxpayers entitled | ||||||
17 | to claim tax credits with respect to qualified equity | ||||||
18 | investments issued by the qualified community development | ||||||
19 | entity since its last report pursuant to this Section. | ||||||
20 | The qualified community development entity is not required | ||||||
21 | to provide the annual report set forth in this Section for | ||||||
22 | qualified low-income community investments that have been | ||||||
23 | redeemed or repaid.
| ||||||
24 | ARTICLE 5. ILLINOIS INCOME TAX ACT |
| |||||||
| |||||||
1 | Section 5-5. The Illinois Income Tax Act is amended by | ||||||
2 | changing Sections 212, 218, 220, 221, 704A, and 901 and by | ||||||
3 | adding Sections 224, 225, 226, and 227 as follows:
| ||||||
4 | (35 ILCS 5/212)
| ||||||
5 | Sec. 212. Earned income tax credit.
| ||||||
6 | (a) With respect to the federal earned income tax credit | ||||||
7 | allowed for the
taxable year under Section 32 of the federal | ||||||
8 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
9 | is entitled to a credit against the tax imposed by
subsections | ||||||
10 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||
11 | federal tax credit for each taxable year beginning on or after
| ||||||
12 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||
13 | 7.5% of the federal tax credit for each taxable year beginning | ||||||
14 | on or after January 1, 2012 and ending prior to December 31, | ||||||
15 | 2013, and (iii) 10% of the federal tax credit for each taxable | ||||||
16 | year beginning on or after January 1, 2013 and beginning prior | ||||||
17 | to January 1, 2017, (iv) 12.5% of the federal tax credit for | ||||||
18 | each taxable year beginning on or after January 1, 2017 and | ||||||
19 | beginning prior to January 1, 2018, and (v) 15% of the federal | ||||||
20 | tax credit for each taxable year beginning on or after January | ||||||
21 | 1, 2018 .
| ||||||
22 | For a non-resident or part-year resident, the amount of the | ||||||
23 | credit under this
Section shall be in proportion to the amount | ||||||
24 | of income attributable to this
State.
| ||||||
25 | (b) For taxable years beginning before January 1, 2003, in |
| |||||||
| |||||||
1 | no event
shall a credit under this Section reduce the | ||||||
2 | taxpayer's
liability to less than zero. For each taxable year | ||||||
3 | beginning on or after
January 1, 2003, if the amount of the | ||||||
4 | credit exceeds the income tax liability
for the applicable tax | ||||||
5 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
6 | The amount of a refund shall not be included in the taxpayer's
| ||||||
7 | income or resources for the purposes of determining eligibility | ||||||
8 | or benefit
level in any means-tested benefit program | ||||||
9 | administered by a governmental entity
unless required by | ||||||
10 | federal law.
| ||||||
11 | (c) This Section is exempt from the provisions of Section | ||||||
12 | 250.
| ||||||
13 | (Source: P.A. 97-652, eff. 6-1-12 .)
| ||||||
14 | (35 ILCS 5/218) | ||||||
15 | Sec. 218. Credit for student-assistance contributions. | ||||||
16 | (a) For taxable years ending on or after December 31, 2009 | ||||||
17 | and on or before December 30, 2025 December 30, 2020 , each | ||||||
18 | taxpayer who, during the taxable year, makes a contribution (i) | ||||||
19 | to a specified individual College Savings Pool Account under | ||||||
20 | Section 16.5 of the State Treasurer Act or (ii) to the Illinois | ||||||
21 | Prepaid Tuition Trust Fund in an amount matching a contribution | ||||||
22 | made in the same taxable year by an employee of the taxpayer to | ||||||
23 | that Account or Fund is entitled to a credit against the tax | ||||||
24 | imposed under subsections (a) and (b) of Section 201 in an | ||||||
25 | amount equal to 25% of that matching contribution, but not to |
| |||||||
| |||||||
1 | exceed (i) $500 per contributing employee per taxable year for | ||||||
2 | taxable years ending prior to December 31, 2017 and (ii) $1,000 | ||||||
3 | per contributing employee per taxable year for taxable years | ||||||
4 | ending on or after December 31, 2017 . | ||||||
5 | (b) For partners, shareholders of Subchapter S | ||||||
6 | corporations, and owners of limited liability companies, if the | ||||||
7 | liability company is treated as a partnership for purposes of | ||||||
8 | federal and State income taxation, there is allowed a credit | ||||||
9 | under this Section to be determined in accordance with the | ||||||
10 | determination of income and distributive share of income under | ||||||
11 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
12 | Code. | ||||||
13 | (c) The credit may not be carried back. If the amount of | ||||||
14 | the credit exceeds the tax liability for the year, the excess | ||||||
15 | may be carried forward and applied to the tax liability of the | ||||||
16 | 5 taxable years following the excess credit year. The tax | ||||||
17 | credit shall be applied to the earliest year for which there is | ||||||
18 | a tax liability. If there are credits for more than one year | ||||||
19 | that are available to offset a liability, the earlier credit | ||||||
20 | shall be applied first.
| ||||||
21 | (d) A taxpayer claiming the credit under this Section must | ||||||
22 | maintain and record any information that the Illinois Student | ||||||
23 | Assistance Commission, the Office of the State Treasurer, or | ||||||
24 | the Department may require regarding the matching contribution | ||||||
25 | for which the credit is claimed.
| ||||||
26 | (Source: P.A. 96-198, eff. 8-10-09.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/220) | ||||||
2 | Sec. 220. Angel investment credit. | ||||||
3 | (a) As used in this Section: | ||||||
4 | "Applicant" means a corporation, partnership, limited | ||||||
5 | liability company, or a natural person that makes an investment | ||||||
6 | in a qualified new business venture. The term "applicant" does | ||||||
7 | not include a corporation, partnership, limited liability | ||||||
8 | company, or a natural person who has a direct or indirect | ||||||
9 | ownership interest of at least 51% in the profits, capital, or | ||||||
10 | value of the investment or a related member. | ||||||
11 | "Claimant" means an applicant certified by the Department | ||||||
12 | who files a claim for a credit under this Section. | ||||||
13 | "Department" means the Department of Commerce and Economic | ||||||
14 | Opportunity. | ||||||
15 | "Investment" means money (or its equivalent) given to a | ||||||
16 | qualified new business venture, at a risk of loss, in | ||||||
17 | consideration for an equity interest of the qualified new | ||||||
18 | business venture. The Department may adopt rules to permit | ||||||
19 | certain forms of contingent equity investments to be considered | ||||||
20 | eligible for a tax credit under this Section. | ||||||
21 | "Qualified new business venture" means a business that is | ||||||
22 | registered with the Department under this Section. | ||||||
23 | "Related member" means a person that, with respect to the
| ||||||
24 | applicant investment , is any one of the following: | ||||||
25 | (1) An individual, if the individual and the members of |
| |||||||
| |||||||
1 | the individual's family (as defined in Section 318 of the | ||||||
2 | Internal Revenue Code) own directly, indirectly,
| ||||||
3 | beneficially, or constructively, in the aggregate, at | ||||||
4 | least 50% of the value of the outstanding profits, capital, | ||||||
5 | stock, or other ownership interest in the applicant. | ||||||
6 | (2) A partnership, estate, or trust and any partner or | ||||||
7 | beneficiary, if the partnership, estate, or trust and its | ||||||
8 | partners or beneficiaries own directly, indirectly, | ||||||
9 | beneficially, or constructively, in the aggregate, at | ||||||
10 | least 50% of the profits, capital, stock, or other | ||||||
11 | ownership interest in the applicant. | ||||||
12 | (3) A corporation, and any party related to the | ||||||
13 | corporation in a manner that would require an attribution | ||||||
14 | of stock from the corporation under the attribution rules
| ||||||
15 | of Section 318 of the Internal Revenue Code, if the | ||||||
16 | applicant and any other related member own, in the | ||||||
17 | aggregate, directly, indirectly, beneficially, or | ||||||
18 | constructively, at least 50% of the value of the | ||||||
19 | corporation's outstanding stock. | ||||||
20 | (4) A corporation and any party related to that | ||||||
21 | corporation in a manner that would require an attribution | ||||||
22 | of stock from the corporation to the party or from the
| ||||||
23 | party to the corporation under the attribution rules of | ||||||
24 | Section 318 of the Internal Revenue Code, if the | ||||||
25 | corporation and all such related parties own, in the | ||||||
26 | aggregate, at least 50% of the profits, capital, stock, or |
| |||||||
| |||||||
1 | other ownership interest in the applicant. | ||||||
2 | (5) A person to or from whom there is attribution of | ||||||
3 | stock ownership in accordance with Section 1563(e) of the | ||||||
4 | Internal Revenue Code, except that for purposes of | ||||||
5 | determining whether a person is a related member under this | ||||||
6 | paragraph, "20%" shall be substituted for "5%" whenever | ||||||
7 | "5%" appears in Section 1563(e) of the Internal Revenue | ||||||
8 | Code. | ||||||
9 | (b) For taxable years beginning after December 31, 2010, | ||||||
10 | and ending on or before December 31, 2021 December 31, 2016 , | ||||||
11 | subject to the limitations provided in this Section, a claimant | ||||||
12 | may claim, as a credit against the tax imposed under | ||||||
13 | subsections (a) and (b) of Section 201 of this Act, an amount | ||||||
14 | equal to 25% of the claimant's investment made directly in a | ||||||
15 | qualified new business venture. In order for an investment in a | ||||||
16 | qualified new business venture to be eligible for tax credits, | ||||||
17 | the business must have applied for and received certification | ||||||
18 | under subsection (e) for the taxable year in which the | ||||||
19 | investment was made prior to the date on which the investment | ||||||
20 | was made. The credit under this Section may not exceed the | ||||||
21 | taxpayer's Illinois income tax liability for the taxable year. | ||||||
22 | If the amount of the credit exceeds the tax liability for the | ||||||
23 | year, the excess may be carried forward and applied to the tax | ||||||
24 | liability of the 5 taxable years following the excess credit | ||||||
25 | year. The credit shall be applied to the earliest year for | ||||||
26 | which there is a tax liability. If there are credits from more |
| |||||||
| |||||||
1 | than one tax year that are available to offset a liability, the | ||||||
2 | earlier credit shall be applied first. In the case of a | ||||||
3 | partnership or Subchapter S Corporation, the credit is allowed | ||||||
4 | to the partners or shareholders in accordance with the | ||||||
5 | determination of income and distributive share of income under | ||||||
6 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
7 | Code. | ||||||
8 | (c) The minimum amount an applicant must invest in any | ||||||
9 | single qualified new business venture in order to be eligible | ||||||
10 | for a credit under this Section is $10,000. The maximum amount | ||||||
11 | of an applicant's total investment made in any single qualified | ||||||
12 | new business venture that may be used as the basis for a credit | ||||||
13 | under this Section is $2,000,000 for each investment made | ||||||
14 | directly in a qualified new business venture . | ||||||
15 | (d) The Department shall implement a program to certify an | ||||||
16 | applicant for an angel investment credit. Upon satisfactory | ||||||
17 | review, the Department shall issue a tax credit certificate | ||||||
18 | stating the amount of the tax credit to which the applicant is | ||||||
19 | entitled. The Department shall annually certify that : (i) each | ||||||
20 | qualified new business venture that receives an angel | ||||||
21 | investment under this Section has maintained a minimum | ||||||
22 | employment threshold, as defined by rule, in the State (and | ||||||
23 | continues to maintain a minimum employment threshold in the | ||||||
24 | State for a period of no less than 3 years from the issue date | ||||||
25 | of the last tax credit certificate issued by the Department | ||||||
26 | with respect to such business pursuant to this Section); and |
| |||||||
| |||||||
1 | (ii) the claimant's investment has been made and remains , | ||||||
2 | except in the event of a qualifying liquidity event, in the | ||||||
3 | qualified new business venture for no less than 3 years. | ||||||
4 | If an investment for which a claimant is allowed a credit | ||||||
5 | under subsection (b) is held by the claimant for less than 3 | ||||||
6 | years, other than as a result of a permitted sale of the | ||||||
7 | investment to person who is not a related member, or, if within | ||||||
8 | that period of time the qualified new business venture is moved | ||||||
9 | from the State of Illinois, the claimant shall pay to the | ||||||
10 | Department of Revenue, in the manner prescribed by the | ||||||
11 | Department of Revenue, the aggregate amount of the disqualified | ||||||
12 | credits credit that the claimant received related to the | ||||||
13 | subject investment. | ||||||
14 | If the Department determines that a qualified new business | ||||||
15 | venture failed to maintain a minimum employment threshold in | ||||||
16 | the State through the date which is 3 years from the issue date | ||||||
17 | of the last tax credit certificate issued by the Department | ||||||
18 | with respect to the subject business pursuant to this Section, | ||||||
19 | the claimant or claimants shall pay to the Department of | ||||||
20 | Revenue, in the manner prescribed by the Department of Revenue, | ||||||
21 | the aggregate amount of the disqualified credits that claimant | ||||||
22 | or claimants received related to investments in that business. | ||||||
23 | (e) The Department shall implement a program to register | ||||||
24 | qualified new business ventures for purposes of this Section. A | ||||||
25 | business desiring registration under this Section shall be | ||||||
26 | required to submit a full and complete an application to the |
| |||||||
| |||||||
1 | Department in each taxable year for which the business desires | ||||||
2 | registration . A submitted application shall be effective only | ||||||
3 | for the taxable year in which it is submitted, and a business | ||||||
4 | desiring registration under this Section shall be required to | ||||||
5 | submit a separate application in and for each taxable year for | ||||||
6 | which the business desires registration. Further, if at any | ||||||
7 | time prior to the acceptance of an application for registration | ||||||
8 | under this Section by the Department one or more events occurs | ||||||
9 | which makes the information provided in that application | ||||||
10 | materially false or incomplete (in whole or in part), the | ||||||
11 | business shall promptly notify the Department of the same. Any | ||||||
12 | failure of a business to promptly provide the foregoing | ||||||
13 | information to the Department may, at the discretion of the | ||||||
14 | Department, result in a revocation of a previously approved | ||||||
15 | application for that business, or disqualification of the | ||||||
16 | business from future registration under this Section, or both. | ||||||
17 | The Department may register the business only if the business | ||||||
18 | satisfies all of the following conditions are satisfied : | ||||||
19 | (1) it has its principal place of business headquarters | ||||||
20 | in this State; | ||||||
21 | (2) at least 51% of the employees employed by the | ||||||
22 | business are employed in this State; | ||||||
23 | (3) the business it has the potential for increasing | ||||||
24 | jobs in this State, increasing capital investment in this | ||||||
25 | State, or both, as determined by the Department, and either | ||||||
26 | of the following apply: |
| |||||||
| |||||||
1 | (A) it is principally engaged in innovation in any | ||||||
2 | of the following: manufacturing; biotechnology; | ||||||
3 | nanotechnology; communications; agricultural sciences; | ||||||
4 | clean energy creation or storage technology; | ||||||
5 | processing or assembling products, including medical | ||||||
6 | devices, pharmaceuticals, computer software, computer | ||||||
7 | hardware, semiconductors, other innovative technology | ||||||
8 | products, or other products that are produced using | ||||||
9 | manufacturing methods that are enabled by applying | ||||||
10 | proprietary technology; or providing services that are | ||||||
11 | enabled by applying proprietary technology; or | ||||||
12 | (B) it is undertaking pre-commercialization | ||||||
13 | activity related to proprietary technology that | ||||||
14 | includes conducting research, developing a new product | ||||||
15 | or business process, or developing a service that is | ||||||
16 | principally reliant on applying proprietary | ||||||
17 | technology; | ||||||
18 | (4) it is not principally engaged in real estate | ||||||
19 | development (except for development projects anticipated | ||||||
20 | to take more than 3 years to complete) , insurance, banking, | ||||||
21 | lending, lobbying, political consulting, professional | ||||||
22 | services provided by attorneys, accountants, business | ||||||
23 | consultants, physicians, or health care consultants, | ||||||
24 | wholesale or retail trade, leisure, hospitality, | ||||||
25 | transportation, or construction, except construction of | ||||||
26 | power production plants that derive energy from a renewable |
| |||||||
| |||||||
1 | energy resource, as defined in Section 1 of the Illinois | ||||||
2 | Power Agency Act; | ||||||
3 | (5) at the time it is first certified: | ||||||
4 | (A) it has fewer than 100 employees; | ||||||
5 | (B) it has been in operation in Illinois for not | ||||||
6 | more than 10 consecutive years prior to the year of | ||||||
7 | certification; and | ||||||
8 | (C) it has received not more than $10,000,000 in | ||||||
9 | aggregate investments private equity investment in | ||||||
10 | cash ; | ||||||
11 | (5.1) it agrees to maintain a minimum employment | ||||||
12 | threshold in the State of Illinois prior to the date which | ||||||
13 | is 3 years from the issue date of the last tax credit | ||||||
14 | certificate issued by the Department with respect to that | ||||||
15 | business pursuant to this Section; | ||||||
16 | (6) it agrees not to move its operations from the State | ||||||
17 | of Illinois prior to the date which is 3 years from the | ||||||
18 | issue date of the last tax credit certificate issued by the | ||||||
19 | Department with respect to such business (blank) ; and | ||||||
20 | (7) it has received not more than $4,000,000 in | ||||||
21 | investments that qualified for tax credits under this | ||||||
22 | Section. | ||||||
23 | (f) The Department, in consultation with the Department of | ||||||
24 | Revenue, shall adopt rules to administer this Section. The | ||||||
25 | aggregate amount of the tax credits that may be claimed under | ||||||
26 | this Section for investments made in qualified new business |
| |||||||
| |||||||
1 | ventures shall be limited at $10,000,000 per calendar year , of | ||||||
2 | which $500,000 shall be reserved for investments made in | ||||||
3 | qualified new business ventures which are "minority owned | ||||||
4 | businesses", "female owned businesses", or "businesses owned | ||||||
5 | by a person with a disability" (as those terms are used and | ||||||
6 | defined in the Business Enterprise for Minorities, Females, and | ||||||
7 | Persons with Disabilities Act), and an additional $500,000 | ||||||
8 | shall be reserved for investments made in qualified new | ||||||
9 | business ventures with their principal place of business in | ||||||
10 | counties with a population of not more than 250,000. The | ||||||
11 | foregoing annual allowable amounts shall be allocated by the | ||||||
12 | Department, on a per calendar quarter basis and prior to the | ||||||
13 | commencement of each calendar year, in such proportion as | ||||||
14 | determined by the Department, provided that: (i) the amount | ||||||
15 | initially allocated by the Department for any one calendar | ||||||
16 | quarter shall not exceed 35% of the total allowable amount; and | ||||||
17 | (ii) any portion of the allocated allowable amount remaining | ||||||
18 | unused as of the end of any of the first 2 calendar quarters of | ||||||
19 | a given calendar year shall be rolled into, and added to, the | ||||||
20 | total allocated amount for the next available calendar quarter . | ||||||
21 | (g) A claimant may not sell or otherwise transfer a credit | ||||||
22 | awarded under this Section to another person. | ||||||
23 | (h) On or before March 1 of each year, the Department shall | ||||||
24 | report to the Governor and to the General Assembly on the tax | ||||||
25 | credit certificates awarded under this Section for the prior | ||||||
26 | calendar year. |
| |||||||
| |||||||
1 | (1) This report must include, for each tax credit | ||||||
2 | certificate awarded: | ||||||
3 | (A) the name of the claimant , and the amount of | ||||||
4 | credit awarded or allocated to that claimant , and the | ||||||
5 | name of the recipient qualified new business venture | ||||||
6 | that received the investment ; | ||||||
7 | (B) the name and address (including the county) of | ||||||
8 | the qualified new business venture that received the | ||||||
9 | investment giving rise to the credit, the North | ||||||
10 | American Industry Classification System (NAICS) code | ||||||
11 | applicable to that qualified new business venture, and | ||||||
12 | the number of employees of the the qualified new | ||||||
13 | business venture that received the investment giving | ||||||
14 | rise to the credit and the county in which the | ||||||
15 | qualified new business venture is located ; and | ||||||
16 | (C) the date of approval by the Department of each | ||||||
17 | claimant's the applications for the tax credit | ||||||
18 | certificate. | ||||||
19 | (2) The report must also include: | ||||||
20 | (A) the total number of applicants and the total | ||||||
21 | number of claimants, including the amount of each tax | ||||||
22 | credit certificate and amount for tax credit | ||||||
23 | certificates awarded to a claimant under this Section | ||||||
24 | in the prior calendar year; | ||||||
25 | (B) the total number of applications from | ||||||
26 | businesses seeking registration under this Section, |
| |||||||
| |||||||
1 | the total number of new qualified business ventures | ||||||
2 | registered by the Department, and the aggregate amount | ||||||
3 | of investment upon which tax credit certificates were | ||||||
4 | issued in the prior calendar year the total number of | ||||||
5 | applications and amount for which tax credit | ||||||
6 | certificates were issued in the prior calendar year ; | ||||||
7 | and | ||||||
8 | (C) the total amount of tax credit certificates | ||||||
9 | sought by applicants, the amount of each tax credit | ||||||
10 | certificate issued to a claimant, the aggregate amount | ||||||
11 | of all tax credit certificates issued in the prior | ||||||
12 | calendar year and the aggregate amount of tax credit | ||||||
13 | certificates issued as authorized under this Section | ||||||
14 | for all calendar years the total tax credit | ||||||
15 | certificates and amount authorized under this Section | ||||||
16 | for all calendar years .
| ||||||
17 | (3) On and after the effective date of this amendatory | ||||||
18 | Act of the 100th General Assembly, the Department shall | ||||||
19 | require a business seeking registration as a qualified new | ||||||
20 | business venture to include in its application the North | ||||||
21 | American Industry Classification System (NAICS) code | ||||||
22 | associated with the business and the number of employees at | ||||||
23 | the time of application. Each business registered by the | ||||||
24 | Department as a qualified new business venture that | ||||||
25 | receives an investment giving rise to the issuance of a tax | ||||||
26 | credit certificate shall, for each of the 3 subsequent |
| |||||||
| |||||||
1 | years, report to the Department the following: | ||||||
2 | (A) the number of employees at the end of each | ||||||
3 | year; | ||||||
4 | (B) the amount of additional new capital | ||||||
5 | investment raised within each year; and | ||||||
6 | (C) any liquidity event transpiring within the | ||||||
7 | 3-year period; for purposes of this paragraph (C), a | ||||||
8 | liquidity event shall mean an event that allows some or | ||||||
9 | all investors in a company to cash out some or all of | ||||||
10 | their ownership shares or that is considered an exit | ||||||
11 | strategy for an illiquid investment. | ||||||
12 | (i) For each business seeking registration under this | ||||||
13 | Section after December 31, 2016, the Department shall require | ||||||
14 | the business to include in its application the North American | ||||||
15 | Industry Classification System (NAICS) code applicable to the | ||||||
16 | business and the number of employees of the business at the | ||||||
17 | time of application. Each business registered by the Department | ||||||
18 | as a qualified new business venture that receives an investment | ||||||
19 | giving rise to the issuance of a tax credit certificate | ||||||
20 | pursuant to this Section shall, for each of the 3 years | ||||||
21 | following the issue date of the last tax credit certificate | ||||||
22 | issued by the Department with respect to such business pursuant | ||||||
23 | to this Section, report to the Department the following: | ||||||
24 | (1) the number of employees and the location at which | ||||||
25 | those employees are employed, both as of the end of each | ||||||
26 | year; |
| |||||||
| |||||||
1 | (2) the amount of additional new capital investment | ||||||
2 | raised as of the end of each year, if any; and | ||||||
3 | (3) the terms of any liquidity event occurring during | ||||||
4 | such year; for the purposes of this Section, a "liquidity | ||||||
5 | event" means any event that would be considered an exit for | ||||||
6 | an illiquid investment, including any event that allows the | ||||||
7 | equity holders of the business (or any material portion | ||||||
8 | thereof) to cash out some or all of their respective equity | ||||||
9 | interests. | ||||||
10 | (Source: P.A. 96-939, eff. 1-1-11; 97-507, eff. 8-23-11; | ||||||
11 | 97-1097, eff. 8-24-12.)
| ||||||
12 | (35 ILCS 5/221) | ||||||
13 | Sec. 221. Rehabilitation costs; qualified historic | ||||||
14 | properties; River Edge Redevelopment Zone. | ||||||
15 | (a) For taxable years beginning on or after January 1, 2012 | ||||||
16 | and ending prior to January 1, 2023 January 1, 2018 , there | ||||||
17 | shall be allowed a tax credit against the tax imposed by | ||||||
18 | subsections (a) and (b) of Section 201 in an amount equal to | ||||||
19 | 25% of qualified expenditures incurred by a qualified taxpayer | ||||||
20 | during the taxable year in the restoration and preservation of | ||||||
21 | a qualified historic structure located in a River Edge | ||||||
22 | Redevelopment Zone pursuant to a qualified rehabilitation | ||||||
23 | plan, provided that the total amount of such expenditures (i) | ||||||
24 | must equal $5,000 or more and (ii) must exceed 50% of the | ||||||
25 | purchase price of the property. |
| |||||||
| |||||||
1 | (b) To obtain a tax credit pursuant to this Section, the | ||||||
2 | taxpayer must apply with the Department of Commerce and | ||||||
3 | Economic Opportunity. The Department of Commerce and Economic | ||||||
4 | Opportunity, in consultation with the Historic Preservation | ||||||
5 | Agency, shall determine the amount of eligible rehabilitation | ||||||
6 | costs and expenses. The Historic Preservation Agency shall | ||||||
7 | determine whether the rehabilitation is consistent with the | ||||||
8 | standards of the Secretary of the United States Department of | ||||||
9 | the Interior for rehabilitation. Upon completion and review of | ||||||
10 | the project, the Department of Commerce and Economic | ||||||
11 | Opportunity shall issue a certificate in the amount of the | ||||||
12 | eligible credits. At the time the certificate is issued, an | ||||||
13 | issuance fee up to the maximum amount of 2% of the amount of | ||||||
14 | the credits issued by the certificate may be collected from the | ||||||
15 | applicant to administer the provisions of this Section. If | ||||||
16 | collected, this issuance fee shall be deposited into the | ||||||
17 | Historic Property Administrative Fund, a special fund created | ||||||
18 | in the State treasury. Subject to appropriation, moneys in the | ||||||
19 | Historic Property Administrative Fund shall be evenly divided | ||||||
20 | between the Department of Commerce and Economic Opportunity and | ||||||
21 | the Historic Preservation Agency to reimburse the Department of | ||||||
22 | Commerce and Economic Opportunity and the Historic | ||||||
23 | Preservation Agency for the costs associated with | ||||||
24 | administering this Section. The taxpayer must attach the | ||||||
25 | certificate to the tax return on which the credits are to be | ||||||
26 | claimed. The Department of Commerce and Economic Opportunity |
| |||||||
| |||||||
1 | may adopt rules to implement this Section. | ||||||
2 | (c) The tax credit under this Section may not reduce the | ||||||
3 | taxpayer's liability to less than
zero. | ||||||
4 | (d) As used in this Section, the following terms have the | ||||||
5 | following meanings. | ||||||
6 | "Qualified expenditure" means all the costs and expenses | ||||||
7 | defined as qualified rehabilitation expenditures under Section | ||||||
8 | 47 of the federal Internal Revenue Code that were incurred in | ||||||
9 | connection with a qualified historic structure. | ||||||
10 | "Qualified historic structure" means a certified historic | ||||||
11 | structure as defined under Section 47 (c)(3) of the federal | ||||||
12 | Internal Revenue Code. | ||||||
13 | "Qualified rehabilitation plan" means a project that is | ||||||
14 | approved by the Historic Preservation Agency as being | ||||||
15 | consistent with the standards in effect on the effective date | ||||||
16 | of this amendatory Act of the 97th General Assembly for | ||||||
17 | rehabilitation as adopted by the federal Secretary of the | ||||||
18 | Interior. | ||||||
19 | "Qualified taxpayer" means the owner of the qualified | ||||||
20 | historic structure or any other person who qualifies for the | ||||||
21 | federal rehabilitation credit allowed by Section 47 of the | ||||||
22 | federal Internal Revenue Code with respect to that qualified | ||||||
23 | historic structure. Partners, shareholders of subchapter S | ||||||
24 | corporations, and owners of limited liability companies (if the | ||||||
25 | limited liability company is treated as a partnership for | ||||||
26 | purposes of federal and State income taxation) are entitled to |
| |||||||
| |||||||
1 | a credit under this Section to be determined in accordance with | ||||||
2 | the determination of income and distributive share of income | ||||||
3 | under Sections 702 and 703 and subchapter S of the Internal | ||||||
4 | Revenue Code, provided that credits granted to a partnership, a | ||||||
5 | limited liability company taxed as a partnership, or other | ||||||
6 | multiple owners of property shall be passed through to the | ||||||
7 | partners, members, or owners respectively on a pro rata basis | ||||||
8 | or pursuant to an executed agreement among the partners, | ||||||
9 | members, or owners documenting any alternate distribution | ||||||
10 | method.
| ||||||
11 | (Source: P.A. 99-914, eff. 12-20-16.)
| ||||||
12 | (35 ILCS 5/224 new) | ||||||
13 | Sec. 224. Business Occupation Assessment credit. For tax | ||||||
14 | years ending on or after December 31, 2017, a taxpayer is | ||||||
15 | entitled to a credit against the taxes imposed under | ||||||
16 | subsections (a) and (b) of Section 201 of this Act in an amount | ||||||
17 | equal to the amount paid by the taxpayer pursuant to the | ||||||
18 | Business Occupation Assessment Act during the tax year. If the | ||||||
19 | amount of the credit exceeds the tax liability for the year, | ||||||
20 | such excess shall not reduce the tax liability to less than | ||||||
21 | zero, and it shall not be carried forward to any subsequent | ||||||
22 | taxable year.
| ||||||
23 | (35 ILCS 5/225 new) | ||||||
24 | Sec. 225. Internship credit. |
| |||||||
| |||||||
1 | (a) For each taxable year ending on or after December 31, | ||||||
2 | 2017, each taxpayer is entitled to a credit against the tax | ||||||
3 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
4 | in an amount equal to 10% of the stipend or salary paid by the | ||||||
5 | taxpayer during the taxable year to (i) up to 5 qualified | ||||||
6 | college interns and (ii) up to 5 full-time employees, provided | ||||||
7 | that the full-time employee had been a qualified college intern | ||||||
8 | during either of the 2 taxable years immediately preceding the | ||||||
9 | taxable year for which the credit is claimed. For partners, | ||||||
10 | shareholders of Subchapter S corporations, and owners of | ||||||
11 | limited liability companies, if the liability company is | ||||||
12 | treated as a partnership for purposes of federal and State | ||||||
13 | income taxation, there shall be allowed a credit under this | ||||||
14 | Section to be determined in accordance with the determination | ||||||
15 | of income and distributive share of income under Sections 702 | ||||||
16 | and 704 and Subchapter S of the Internal Revenue Code. | ||||||
17 | (b) For the purposes of this Section, "qualified college | ||||||
18 | intern" means an Illinois resident (i) who is an enrolled | ||||||
19 | student in an institution of higher education or vocational | ||||||
20 | technical education program located in Illinois, (ii) who is | ||||||
21 | seeking a degree or certification of completion in a major | ||||||
22 | field of study closely related to the work experience performed | ||||||
23 | for the taxpayer, (iii) whose internship is taken for academic | ||||||
24 | credit or counts toward the completion of a vocational | ||||||
25 | technical education program, (iv) who is supervised and | ||||||
26 | evaluated by the taxpayer, and (v) whose position is located in |
| |||||||
| |||||||
1 | Illinois. For purposes of this Section, "full-time employee" | ||||||
2 | means an Illinois resident (i) who is employed by the taxpayer | ||||||
3 | for consideration for at least 35 hours each week or who | ||||||
4 | renders any other standard of service generally accepted by | ||||||
5 | industry custom or practice as full-time employment, and (ii) | ||||||
6 | whose position is located in Illinois. | ||||||
7 | (c) In no event shall a credit under this Section reduce | ||||||
8 | the taxpayer's liability to less than zero. If the amount of | ||||||
9 | the credit exceeds the tax liability for the year, the excess | ||||||
10 | may not be carried forward or carried back.
| ||||||
11 | (35 ILCS 5/226 new) | ||||||
12 | Sec. 226. Federal child tax credit. For taxable years | ||||||
13 | beginning on or after January 1, 2017 and beginning prior to | ||||||
14 | January 1, 2022, with respect to the federal child tax credit | ||||||
15 | allowed for the taxable year under Section 24 of the federal | ||||||
16 | Internal Revenue Code, 26 U.S.C. 24, each individual taxpayer | ||||||
17 | is entitled to a credit against the tax imposed by subsections | ||||||
18 | (a) and (b) of Section 201 in an amount equal to 20% of the | ||||||
19 | federal tax credit. | ||||||
20 | For a non-resident or part-year resident, the amount of the | ||||||
21 | credit under this Section shall be in proportion to the amount | ||||||
22 | of income attributable to this State. | ||||||
23 | If the amount of the credit exceeds the income tax | ||||||
24 | liability for the applicable tax year, then the excess credit | ||||||
25 | shall be refunded to the taxpayer. The amount of a refund shall |
| |||||||
| |||||||
1 | not be included in the taxpayer's income or resources for the | ||||||
2 | purposes of determining eligibility or benefit level in any | ||||||
3 | means-tested benefit program administered by a governmental | ||||||
4 | entity unless required by federal law.
| ||||||
5 | (35 ILCS 5/227 new) | ||||||
6 | Sec. 227. Apprenticeship training credit. | ||||||
7 | (a) For tax years
beginning on or after January 1, 2017 and | ||||||
8 | ending prior to January 1, 2022, a taxpayer shall be allowed a | ||||||
9 | credit against the tax imposed by subsections (a) and (b)
of | ||||||
10 | Section 201 for certain amounts paid
by the taxpayer as wages | ||||||
11 | pursuant to a qualified apprenticeship program. The credit may | ||||||
12 | not exceed the lesser of (i) 50% of the wages paid by the | ||||||
13 | taxpayer to each apprentice during the taxable year or (ii) | ||||||
14 | $4,800 per apprentice. The taxpayer shall apply with the | ||||||
15 | Department of Commerce and Economic Opportunity annually for | ||||||
16 | certification as a "qualified apprenticeship program". The | ||||||
17 | application shall be in the form and manner prescribed by the | ||||||
18 | Department of Commerce and Economic Opportunity. | ||||||
19 | (b) For partners, shareholders of Subchapter S | ||||||
20 | corporations, and owners of limited liability companies, if the | ||||||
21 | liability company is treated as a partnership for purposes of | ||||||
22 | federal and State income taxation, the credit under this | ||||||
23 | Section shall be determined in accordance with the | ||||||
24 | determination of income and distributive share of income under | ||||||
25 | Sections 702 and 704 and Subchapter S of the Internal Revenue |
| |||||||
| |||||||
1 | Code. | ||||||
2 | (c) In no event shall a credit under this Section reduce | ||||||
3 | the taxpayer's liability to less than zero. If the amount of | ||||||
4 | the credit exceeds the tax liability for the year, the excess | ||||||
5 | may be carried forward and applied to the tax liability of the | ||||||
6 | 5 taxable years following the excess credit year. The tax | ||||||
7 | credit shall be applied to the earliest year for which there is | ||||||
8 | a tax liability. If there are credits for more than one year | ||||||
9 | that are available to offset a liability, the earlier credit | ||||||
10 | shall be applied first. | ||||||
11 | (d) For the purposes of this Section, "qualified | ||||||
12 | apprenticeship program" means an apprenticeship program in | ||||||
13 | manufacturing, plastics, or construction trades that is | ||||||
14 | certified by the Department of Commerce and Economic | ||||||
15 | Opportunity under this Section and at least 3 years in | ||||||
16 | duration.
| ||||||
17 | (35 ILCS 5/704A) | ||||||
18 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
19 | (a) In general, every employer who deducts and withholds or | ||||||
20 | is required to deduct and withhold tax under this Act on or | ||||||
21 | after January 1, 2008 shall make those payments and returns as | ||||||
22 | provided in this Section. | ||||||
23 | (b) Returns. Every employer shall, in the form and manner | ||||||
24 | required by the Department, make returns with respect to taxes | ||||||
25 | withheld or required to be withheld under this Article 7 for |
| |||||||
| |||||||
1 | each quarter beginning on or after January 1, 2008, on or | ||||||
2 | before the last day of the first month following the close of | ||||||
3 | that quarter. On and after January 1, 2017, an employer with an | ||||||
4 | average employee head count of fewer than 25 employees during | ||||||
5 | the previous calendar year shall make returns with respect to | ||||||
6 | taxes withheld or required to be withheld under this Article 7 | ||||||
7 | annually. | ||||||
8 | (c) Payments. With respect to amounts withheld or required | ||||||
9 | to be withheld on or after January 1, 2008: | ||||||
10 | (1) Semi-weekly payments. For each calendar year, each | ||||||
11 | employer who withheld or was required to withhold more than | ||||||
12 | $12,000 during the one-year period ending on June 30 of the | ||||||
13 | immediately preceding calendar year, payment must be made: | ||||||
14 | (A) on or before each Friday of the calendar year, | ||||||
15 | for taxes withheld or required to be withheld on the | ||||||
16 | immediately preceding Saturday, Sunday, Monday, or | ||||||
17 | Tuesday; | ||||||
18 | (B) on or before each Wednesday of the calendar | ||||||
19 | year, for taxes withheld or required to be withheld on | ||||||
20 | the immediately preceding Wednesday, Thursday, or | ||||||
21 | Friday. | ||||||
22 | Beginning with calendar year 2011, payments made under | ||||||
23 | this paragraph (1) of subsection (c) must be made by | ||||||
24 | electronic funds transfer. | ||||||
25 | (2) Semi-weekly payments. Any employer who withholds | ||||||
26 | or is required to withhold more than $12,000 in any quarter |
| |||||||
| |||||||
1 | of a calendar year is required to make payments on the | ||||||
2 | dates set forth under item (1) of this subsection (c) for | ||||||
3 | each remaining quarter of that calendar year and for the | ||||||
4 | subsequent calendar year.
| ||||||
5 | (3) Monthly payments. Each employer, other than an | ||||||
6 | employer described in items (1) or (2) of this subsection, | ||||||
7 | shall pay to the Department, on or before the 15th day of | ||||||
8 | each month the taxes withheld or required to be withheld | ||||||
9 | during the immediately preceding month. | ||||||
10 | (4) Payments with returns. Each employer shall pay to | ||||||
11 | the Department, on or before the due date for each return | ||||||
12 | required to be filed under this Section, any tax withheld | ||||||
13 | or required to be withheld during the period for which the | ||||||
14 | return is due and not previously paid to the Department. | ||||||
15 | (d) Regulatory authority. The Department may, by rule: | ||||||
16 | (1) Permit employers, in lieu of the requirements of | ||||||
17 | subsections (b) and (c), to file annual returns due on or | ||||||
18 | before January 31 of the year for taxes withheld or | ||||||
19 | required to be withheld during the previous calendar year | ||||||
20 | and, if the aggregate amounts required to be withheld by | ||||||
21 | the employer under this Article 7 (other than amounts | ||||||
22 | required to be withheld under Section 709.5) do not exceed | ||||||
23 | $1,000 for the previous calendar year, to pay the taxes | ||||||
24 | required to be shown on each such return no later than the | ||||||
25 | due date for such return. | ||||||
26 | (2) Provide that any payment required to be made under |
| |||||||
| |||||||
1 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
2 | extent paid by electronic funds transfer on or before the | ||||||
3 | due date for deposit of federal income taxes withheld from, | ||||||
4 | or federal employment taxes due with respect to, the wages | ||||||
5 | from which the Illinois taxes were withheld. | ||||||
6 | (3) Designate one or more depositories to which payment | ||||||
7 | of taxes required to be withheld under this Article 7 must | ||||||
8 | be paid by some or all employers. | ||||||
9 | (4) Increase the threshold dollar amounts at which | ||||||
10 | employers are required to make semi-weekly payments under | ||||||
11 | subsection (c)(1) or (c)(2). | ||||||
12 | (e) Annual return and payment. Every employer who deducts | ||||||
13 | and withholds or is required to deduct and withhold tax from a | ||||||
14 | person engaged in domestic service employment, as that term is | ||||||
15 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
16 | comply with the requirements of this Section with respect to | ||||||
17 | such employees by filing an annual return and paying the taxes | ||||||
18 | required to be deducted and withheld on or before the 15th day | ||||||
19 | of the fourth month following the close of the employer's | ||||||
20 | taxable year. The Department may allow the employer's return to | ||||||
21 | be submitted with the employer's individual income tax return | ||||||
22 | or to be submitted with a return due from the employer under | ||||||
23 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
24 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
25 | that, under the Internal Revenue Code and regulations | ||||||
26 | promulgated thereunder, is required to be submitted to the |
| |||||||
| |||||||
1 | Internal Revenue Service on magnetic media or electronically | ||||||
2 | must also be submitted to the Department on magnetic media or | ||||||
3 | electronically for Illinois purposes, if required by the | ||||||
4 | Department. | ||||||
5 | (g) For amounts deducted or withheld after December 31, | ||||||
6 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
7 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
8 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
9 | against payments due under this Section for amounts withheld | ||||||
10 | during the first calendar year beginning after the end of that | ||||||
11 | taxable year equal to the amount of the credit for the | ||||||
12 | incremental income tax attributable to full-time employees of | ||||||
13 | the taxpayer awarded to the taxpayer by the Department of | ||||||
14 | Commerce and Economic Opportunity under the Economic | ||||||
15 | Development for a Growing Economy Tax Credit Act for the | ||||||
16 | taxable year and credits not previously claimed and allowed to | ||||||
17 | be carried forward under Section 211(4) of this Act as provided | ||||||
18 | in subsection (f) of Section 5-15 of the Economic Development | ||||||
19 | for a Growing Economy Tax Credit Act. The credit or credits may | ||||||
20 | not reduce the taxpayer's obligation for any payment due under | ||||||
21 | this Section to less than zero. If the amount of the credit or | ||||||
22 | credits exceeds the total payments due under this Section with | ||||||
23 | respect to amounts withheld during the calendar year, the | ||||||
24 | excess may be carried forward and applied against the | ||||||
25 | taxpayer's liability under this Section in the succeeding | ||||||
26 | calendar years as allowed to be carried forward under paragraph |
| |||||||
| |||||||
1 | (4) of Section 211 of this Act. The credit or credits shall be | ||||||
2 | applied to the earliest year for which there is a tax | ||||||
3 | liability. If there are credits from more than one taxable year | ||||||
4 | that are available to offset a liability, the earlier credit | ||||||
5 | shall be applied first. Each employer who deducts and withholds | ||||||
6 | or is required to deduct and withhold tax under this Act and | ||||||
7 | who retains income tax withholdings under subsection (f) of | ||||||
8 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
9 | Tax Credit Act must make a return with respect to such taxes | ||||||
10 | and retained amounts in the form and manner that the | ||||||
11 | Department, by rule, requires and pay to the Department or to a | ||||||
12 | depositary designated by the Department those withheld taxes | ||||||
13 | not retained by the taxpayer. For purposes of this subsection | ||||||
14 | (g), the term taxpayer shall include taxpayer and members of | ||||||
15 | the taxpayer's unitary business group as defined under | ||||||
16 | paragraph (27) of subsection (a) of Section 1501 of this Act. | ||||||
17 | This Section is exempt from the provisions of Section 250 of | ||||||
18 | this Act. No credit awarded under the Economic Development for | ||||||
19 | a Growing Economy Tax Credit Act for agreements entered into on | ||||||
20 | or after January 1, 2015 may be credited against payments due | ||||||
21 | under this Section. | ||||||
22 | (h) An employer may claim a credit against payments due | ||||||
23 | under this Section for amounts withheld during the first | ||||||
24 | calendar year ending after the date on which a tax credit | ||||||
25 | certificate was issued under Section 35 of the Small Business | ||||||
26 | Job Creation Tax Credit Act. The credit shall be equal to the |
| |||||||
| |||||||
1 | amount shown on the certificate, but may not reduce the | ||||||
2 | taxpayer's obligation for any payment due under this Section to | ||||||
3 | less than zero. If the amount of the credit exceeds the total | ||||||
4 | payments due under this Section with respect to amounts | ||||||
5 | withheld during the calendar year, the excess may be carried | ||||||
6 | forward and applied against the taxpayer's liability under this | ||||||
7 | Section in the 5 succeeding calendar years. The credit shall be | ||||||
8 | applied to the earliest year for which there is a tax | ||||||
9 | liability. If there are credits from more than one calendar | ||||||
10 | year that are available to offset a liability, the earlier | ||||||
11 | credit shall be applied first. This Section is exempt from the | ||||||
12 | provisions of Section 250 of this Act. | ||||||
13 | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; | ||||||
14 | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. | ||||||
15 | 8-12-11; 97-507, eff. 8-23-11.)
| ||||||
16 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
17 | Sec. 901. Collection authority. | ||||||
18 | (a) In general. | ||||||
19 | The Department shall collect the taxes imposed by this Act. | ||||||
20 | The Department
shall collect certified past due child support | ||||||
21 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
22 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||||||
23 | (e), (f), (g), and (h) of this Section, money collected
| ||||||
24 | pursuant to subsections (a) and (b) of Section 201 of this Act | ||||||
25 | shall be
paid into the General Revenue Fund in the State |
| |||||||
| |||||||
1 | treasury; money
collected pursuant to subsections (c) and (d) | ||||||
2 | of Section 201 of this Act
shall be paid into the Personal | ||||||
3 | Property Tax Replacement Fund, a special
fund in the State | ||||||
4 | Treasury; and money collected under Section 2505-650 of the
| ||||||
5 | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||||||
6 | into the
Child Support Enforcement Trust Fund, a special fund | ||||||
7 | outside the State
Treasury, or
to the State
Disbursement Unit | ||||||
8 | established under Section 10-26 of the Illinois Public Aid
| ||||||
9 | Code, as directed by the Department of Healthcare and Family | ||||||
10 | Services. | ||||||
11 | (b) Local Government Distributive Fund. | ||||||
12 | Beginning August 1, 1969, and continuing through June 30, | ||||||
13 | 1994, the Treasurer
shall transfer each month from the General | ||||||
14 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
15 | known as the "Local Government Distributive Fund", an
amount | ||||||
16 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
17 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
18 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
19 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
20 | from the General Revenue Fund to the Local Government
| ||||||
21 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
22 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
23 | Section 201 of this Act during the
preceding month. Beginning | ||||||
24 | July 1, 1995 and continuing through January 31, 2011, the | ||||||
25 | Treasurer shall transfer each
month from the General Revenue | ||||||
26 | Fund to the Local Government Distributive Fund
an amount equal |
| |||||||
| |||||||
1 | to the net of (i) 1/10 of the net revenue realized from the
tax | ||||||
2 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
3 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
4 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
5 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
6 | and continuing through January 31, 2015, the Treasurer shall | ||||||
7 | transfer each month from the General Revenue Fund to the Local | ||||||
8 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
9 | 6% (10% of the ratio of the 3% individual income tax rate prior | ||||||
10 | to 2011 to the 5% individual income tax rate after 2010) of the | ||||||
11 | net revenue realized from the tax imposed by subsections (a) | ||||||
12 | and (b) of Section 201 of this Act upon individuals, trusts, | ||||||
13 | and estates during the preceding month and (ii) 6.86% (10% of | ||||||
14 | the ratio of the 4.8% corporate income tax rate prior to 2011 | ||||||
15 | to the 7% corporate income tax rate after 2010) of the net | ||||||
16 | revenue realized from the tax imposed by subsections (a) and | ||||||
17 | (b) of Section 201 of this Act upon corporations during the | ||||||
18 | preceding month. Beginning February 1, 2015 and continuing | ||||||
19 | through January 31, 2025, the Treasurer shall transfer each | ||||||
20 | month from the General Revenue Fund to the Local Government | ||||||
21 | Distributive Fund an amount equal to the sum of (i) 8% (10% of | ||||||
22 | the ratio of the 3% individual income tax rate prior to 2011 to | ||||||
23 | the 3.75% individual income tax rate after 2014) of the net | ||||||
24 | revenue realized from the tax imposed by subsections (a) and | ||||||
25 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
26 | estates during the preceding month and (ii) 9.14% (10% of the |
| |||||||
| |||||||
1 | ratio of the 4.8% corporate income tax rate prior to 2011 to | ||||||
2 | the 5.25% corporate income tax rate after 2014) of the net | ||||||
3 | revenue realized from the tax imposed by subsections (a) and | ||||||
4 | (b) of Section 201 of this Act upon corporations during the | ||||||
5 | preceding month. Beginning February 1, 2025, the Treasurer | ||||||
6 | shall transfer each month from the General Revenue Fund to the | ||||||
7 | Local Government Distributive Fund an amount equal to the sum | ||||||
8 | of (i) 9.23% (10% of the ratio of the 3% individual income tax | ||||||
9 | rate prior to 2011 to the 3.25% individual income tax rate | ||||||
10 | after 2024) of the net revenue realized from the tax imposed by | ||||||
11 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
12 | individuals, trusts, and estates during the preceding month and | ||||||
13 | (ii) 10% of the net revenue realized from the tax imposed by | ||||||
14 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
15 | corporations during the preceding month. Net revenue realized | ||||||
16 | for a month shall be defined as the
revenue from the tax | ||||||
17 | imposed by subsections (a) and (b) of Section 201 of this
Act | ||||||
18 | which is deposited in the General Revenue Fund, the Education | ||||||
19 | Assistance
Fund, the Income Tax Surcharge Local Government | ||||||
20 | Distributive Fund, the Fund for the Advancement of Education, | ||||||
21 | and the Commitment to Human Services Fund during the
month | ||||||
22 | minus the amount paid out of the General Revenue Fund in State | ||||||
23 | warrants
during that same month as refunds to taxpayers for | ||||||
24 | overpayment of liability
under the tax imposed by subsections | ||||||
25 | (a) and (b) of Section 201 of this Act. | ||||||
26 | Beginning on August 26, 2014 (the effective date of Public |
| |||||||
| |||||||
1 | Act 98-1052), the Comptroller shall perform the transfers | ||||||
2 | required by this subsection (b) no later than 60 days after he | ||||||
3 | or she receives the certification from the Treasurer as | ||||||
4 | provided in Section 1 of the State Revenue Sharing Act. | ||||||
5 | (c) Deposits Into Income Tax Refund Fund. | ||||||
6 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
7 | Department shall
deposit a percentage of the amounts | ||||||
8 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
9 | (3), (4), (5), (5.1), (5.2), (5.3), and (5.4) of Section | ||||||
10 | 201 of this Act into a fund in the State
treasury known as | ||||||
11 | the Income Tax Refund Fund. The Department shall deposit 6%
| ||||||
12 | of such amounts during the period beginning January 1, 1989 | ||||||
13 | and ending on June
30, 1989. Beginning with State fiscal | ||||||
14 | year 1990 and for each fiscal year
thereafter, the | ||||||
15 | percentage deposited into the Income Tax Refund Fund during | ||||||
16 | a
fiscal year shall be the Annual Percentage. For fiscal | ||||||
17 | years 1999 through
2001, the Annual Percentage shall be | ||||||
18 | 7.1%.
For fiscal year 2003, the Annual Percentage shall be | ||||||
19 | 8%.
For fiscal year 2004, the Annual Percentage shall be | ||||||
20 | 11.7%. Upon the effective date of this amendatory Act of | ||||||
21 | the 93rd General Assembly, the Annual Percentage shall be | ||||||
22 | 10% for fiscal year 2005. For fiscal year 2006, the Annual | ||||||
23 | Percentage shall be 9.75%. For fiscal
year 2007, the Annual | ||||||
24 | Percentage shall be 9.75%. For fiscal year 2008, the Annual | ||||||
25 | Percentage shall be 7.75%. For fiscal year 2009, the Annual | ||||||
26 | Percentage shall be 9.75%. For fiscal year 2010, the Annual |
| |||||||
| |||||||
1 | Percentage shall be 9.75%. For fiscal year 2011, the Annual | ||||||
2 | Percentage shall be 8.75%. For fiscal year 2012, the Annual | ||||||
3 | Percentage shall be 8.75%. For fiscal year 2013, the Annual | ||||||
4 | Percentage shall be 9.75%. For fiscal year 2014, the Annual | ||||||
5 | Percentage shall be 9.5%. For fiscal year 2015, the Annual | ||||||
6 | Percentage shall be 10%. For all other
fiscal years, the
| ||||||
7 | Annual Percentage shall be calculated as a fraction, the | ||||||
8 | numerator of which
shall be the amount of refunds approved | ||||||
9 | for payment by the Department during
the preceding fiscal | ||||||
10 | year as a result of overpayment of tax liability under
| ||||||
11 | subsections (a) and (b)(1), (2), and (3) , (4), (5), (5.1), | ||||||
12 | (5.2), (5.3), and (5.4) of Section 201 of this Act plus the
| ||||||
13 | amount of such refunds remaining approved but unpaid at the | ||||||
14 | end of the
preceding fiscal year, minus the amounts | ||||||
15 | transferred into the Income Tax
Refund Fund from the | ||||||
16 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
17 | which shall be the amounts which will be collected pursuant
| ||||||
18 | to subsections (a) and (b)(1), (2), and (3) , (4), (5), | ||||||
19 | (5.1), (5.2), (5.3), and (5.4) of Section 201 of this Act | ||||||
20 | during
the preceding fiscal year; except that in State | ||||||
21 | fiscal year 2002, the Annual
Percentage shall in no event | ||||||
22 | exceed 7.6%. The Director of Revenue shall
certify the | ||||||
23 | Annual Percentage to the Comptroller on the last business | ||||||
24 | day of
the fiscal year immediately preceding the fiscal | ||||||
25 | year for which it is to be
effective. | ||||||
26 | (2) Beginning on January 1, 1989 and thereafter, the |
| |||||||
| |||||||
1 | Department shall
deposit a percentage of the amounts | ||||||
2 | collected pursuant to subsections (a) ,
and (b)(6), (7), and | ||||||
3 | (8), (9), (10), (11), (12), (13), and (14), (c) , and (d) of | ||||||
4 | Section 201
of this Act and pursuant to the Business | ||||||
5 | Occupation Assessment Act into a fund in the State treasury | ||||||
6 | known as the Income Tax
Refund Fund. The Department shall | ||||||
7 | deposit 18% of such amounts during the
period beginning | ||||||
8 | January 1, 1989 and ending on June 30, 1989. Beginning
with | ||||||
9 | State fiscal year 1990 and for each fiscal year thereafter, | ||||||
10 | the
percentage deposited into the Income Tax Refund Fund | ||||||
11 | during a fiscal year
shall be the Annual Percentage. For | ||||||
12 | fiscal years 1999, 2000, and 2001, the
Annual Percentage | ||||||
13 | shall be 19%.
For fiscal year 2003, the Annual Percentage | ||||||
14 | shall be 27%. For fiscal year
2004, the Annual Percentage | ||||||
15 | shall be 32%.
Upon the effective date of this amendatory | ||||||
16 | Act of the 93rd General Assembly, the Annual Percentage | ||||||
17 | shall be 24% for fiscal year 2005.
For fiscal year 2006, | ||||||
18 | the Annual Percentage shall be 20%. For fiscal
year 2007, | ||||||
19 | the Annual Percentage shall be 17.5%. For fiscal year 2008, | ||||||
20 | the Annual Percentage shall be 15.5%. For fiscal year 2009, | ||||||
21 | the Annual Percentage shall be 17.5%. For fiscal year 2010, | ||||||
22 | the Annual Percentage shall be 17.5%. For fiscal year 2011, | ||||||
23 | the Annual Percentage shall be 17.5%. For fiscal year 2012, | ||||||
24 | the Annual Percentage shall be 17.5%. For fiscal year 2013, | ||||||
25 | the Annual Percentage shall be 14%. For fiscal year 2014, | ||||||
26 | the Annual Percentage shall be 13.4%. For fiscal year 2015, |
| |||||||
| |||||||
1 | the Annual Percentage shall be 14%. For all other fiscal | ||||||
2 | years, the Annual
Percentage shall be calculated
as a | ||||||
3 | fraction, the numerator of which shall be the amount of | ||||||
4 | refunds
approved for payment by the Department during the | ||||||
5 | preceding fiscal year as
a result of overpayment of tax | ||||||
6 | liability under subsections (a) , and (b)(6),
(7), and (8), | ||||||
7 | (9), (10), (11), (12), (13), and (14), (c) , and (d) of | ||||||
8 | Section 201 of this Act and pursuant to the Business | ||||||
9 | Occupation Assessment Act plus the
amount of such refunds | ||||||
10 | remaining approved but unpaid at the end of the
preceding | ||||||
11 | fiscal year, and the denominator of
which shall be the | ||||||
12 | amounts which will be collected pursuant to subsections | ||||||
13 | (a) ,
and (b)(6), (7), and (8), (9), (10), (11), (12), (13), | ||||||
14 | and (14), (c) , and (d) of Section 201 of this Act and | ||||||
15 | pursuant to the Business Occupation Assessment Act during | ||||||
16 | the
preceding fiscal year; except that in State fiscal year | ||||||
17 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
18 | The Director of Revenue shall
certify the Annual Percentage | ||||||
19 | to the Comptroller on the last business day of
the fiscal | ||||||
20 | year immediately preceding the fiscal year for which it is | ||||||
21 | to be
effective. | ||||||
22 | (3) The Comptroller shall order transferred and the | ||||||
23 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
24 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
25 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
26 | (iii) $35,000,000 in January, 2003. |
| |||||||
| |||||||
1 | (d) Expenditures from Income Tax Refund Fund. | ||||||
2 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
3 | Refund Fund
shall be expended exclusively for the purpose | ||||||
4 | of paying refunds resulting
from overpayment of tax | ||||||
5 | liability under Section 201 of this Act or an overpayment | ||||||
6 | of the assessment under the Business Occupation Assessment | ||||||
7 | Act , for paying
rebates under Section 208.1 in the event | ||||||
8 | that the amounts in the Homeowners'
Tax Relief Fund are | ||||||
9 | insufficient for that purpose,
and for
making transfers | ||||||
10 | pursuant to this subsection (d). | ||||||
11 | (2) The Director shall order payment of refunds | ||||||
12 | resulting from
overpayment of tax liability under Section | ||||||
13 | 201 of this Act or an overpayment of the assessment under | ||||||
14 | the Business Occupation Assessment Act from the
Income Tax | ||||||
15 | Refund Fund only to the extent that amounts collected | ||||||
16 | pursuant
to Section 201 of this Act and transfers pursuant | ||||||
17 | to this subsection (d)
and item (3) of subsection (c) have | ||||||
18 | been deposited and retained in the
Fund. | ||||||
19 | (3) As soon as possible after the end of each fiscal | ||||||
20 | year, the Director
shall
order transferred and the State | ||||||
21 | Treasurer and State Comptroller shall
transfer from the | ||||||
22 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
23 | Replacement Fund an amount, certified by the Director to | ||||||
24 | the Comptroller,
equal to the excess of the amount | ||||||
25 | collected pursuant to subsections (c) and
(d) of Section | ||||||
26 | 201 of this Act deposited into the Income Tax Refund Fund
|
| |||||||
| |||||||
1 | during the fiscal year over the amount of refunds resulting | ||||||
2 | from
overpayment of tax liability under subsections (c) and | ||||||
3 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
4 | Refund Fund during the fiscal year. | ||||||
5 | (4) As soon as possible after the end of each fiscal | ||||||
6 | year, the Director shall
order transferred and the State | ||||||
7 | Treasurer and State Comptroller shall
transfer from the | ||||||
8 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
9 | Refund Fund an amount, certified by the Director to the | ||||||
10 | Comptroller, equal
to the excess of the amount of refunds | ||||||
11 | resulting from overpayment of tax
liability under | ||||||
12 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
13 | from the Income Tax Refund Fund during the fiscal year over | ||||||
14 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
15 | Section 201 of this Act
deposited into the Income Tax | ||||||
16 | Refund Fund during the fiscal year. | ||||||
17 | (4.5) As soon as possible after the end of fiscal year | ||||||
18 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
19 | order transferred and the State Treasurer and
State | ||||||
20 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
21 | to the General
Revenue Fund any surplus remaining in the | ||||||
22 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
23 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
24 | attributable to transfers under item (3) of subsection (c) | ||||||
25 | less refunds
resulting from the earned income tax credit. | ||||||
26 | (5) This Act shall constitute an irrevocable and |
| |||||||
| |||||||
1 | continuing
appropriation from the Income Tax Refund Fund | ||||||
2 | for the purpose of paying
refunds upon the order of the | ||||||
3 | Director in accordance with the provisions of
this Section. | ||||||
4 | (e) Deposits into the Education Assistance Fund and the | ||||||
5 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
6 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
7 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
8 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
9 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
10 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
11 | January 31, 1993, of the amounts collected pursuant to
| ||||||
12 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
13 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
14 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
15 | Local Government Distributive Fund in the State
Treasury. | ||||||
16 | Beginning February 1, 1993 and continuing through June 30, | ||||||
17 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
18 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
19 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
20 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
21 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
22 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
23 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
24 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
25 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
26 | Local Government Distributive Fund in the State Treasury. |
| |||||||
| |||||||
1 | (f) Deposits into the Fund for the Advancement of | ||||||
2 | Education. Beginning February 1, 2015, the Department shall | ||||||
3 | deposit the following portions of the revenue realized from the | ||||||
4 | tax imposed upon individuals, trusts, and estates by | ||||||
5 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
6 | preceding month, minus deposits into the Income Tax Refund | ||||||
7 | Fund, into the Fund for the Advancement of Education: | ||||||
8 | (1) beginning February 1, 2015, and prior to February | ||||||
9 | 1, 2025, 1/30; and | ||||||
10 | (2) beginning February 1, 2025, 1/26. | ||||||
11 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
12 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
13 | the Department shall not make the deposits required by this | ||||||
14 | subsection (f) on or after the effective date of the reduction. | ||||||
15 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
16 | Beginning February 1, 2015, the Department shall deposit the | ||||||
17 | following portions of the revenue realized from the tax imposed | ||||||
18 | upon individuals, trusts, and estates by subsections (a) and | ||||||
19 | (b) of Section 201 of this Act during the preceding month, | ||||||
20 | minus deposits into the Income Tax Refund Fund, into the | ||||||
21 | Commitment to Human Services Fund: | ||||||
22 | (1) beginning February 1, 2015, and prior to February | ||||||
23 | 1, 2025, 1/30; and | ||||||
24 | (2) beginning February 1, 2025, 1/26. | ||||||
25 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
26 | Section 201 is reduced pursuant to Section 201.5 of this Act, |
| |||||||
| |||||||
1 | the Department shall not make the deposits required by this | ||||||
2 | subsection (g) on or after the effective date of the reduction. | ||||||
3 | (h) Deposits into the Tax Compliance and Administration | ||||||
4 | Fund. Beginning on the first day of the first calendar month to | ||||||
5 | occur on or after August 26, 2014 (the effective date of Public | ||||||
6 | Act 98-1098), each month the Department shall pay into the Tax | ||||||
7 | Compliance and Administration Fund, to be used, subject to | ||||||
8 | appropriation, to fund additional auditors and compliance | ||||||
9 | personnel at the Department, an amount equal to 1/12 of 5% of | ||||||
10 | the cash receipts collected during the preceding fiscal year by | ||||||
11 | the Audit Bureau of the Department from the tax imposed by | ||||||
12 | subsections (a), (b), (c), and (d) of Section 201 of this Act, | ||||||
13 | net of deposits into the Income Tax Refund Fund made from those | ||||||
14 | cash receipts. | ||||||
15 | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; | ||||||
16 | 98-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff. | ||||||
17 | 7-20-15.)
| ||||||
18 | ARTICLE 10. ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY TAX | ||||||
19 | CREDIT ACT | ||||||
20 | Section 10-5. The Economic Development for a Growing | ||||||
21 | Economy Tax Credit Act is amended by changing Sections 5-5, | ||||||
22 | 5-10, 5-15, 5-20, 5-25, 5-50, 5-65, 5-70 and 5-77 and by adding | ||||||
23 | Section 5-57 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 10/5-5)
| ||||||
2 | Sec. 5-5. Definitions. As used in this Act:
| ||||||
3 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
4 | Department under
the provisions of Section 5-50 of this Act.
| ||||||
5 | "Applicant" means a Taxpayer that is operating a business | ||||||
6 | located or that
the Taxpayer plans to locate within the State | ||||||
7 | of Illinois and that is engaged
in interstate or intrastate | ||||||
8 | commerce for the purpose of manufacturing,
processing, | ||||||
9 | assembling, warehousing, or distributing products, conducting
| ||||||
10 | research and development, providing tourism services, or | ||||||
11 | providing services
in interstate commerce, office industries, | ||||||
12 | health services, professional services, or agricultural | ||||||
13 | processing, but
excluding retail and , retail food , health, or | ||||||
14 | professional services.
"Applicant" does not include a Taxpayer | ||||||
15 | who closes or
substantially reduces an operation at one | ||||||
16 | location in the State and relocates
substantially the same | ||||||
17 | operation to another location in the State. This does
not | ||||||
18 | prohibit a Taxpayer from expanding its operations at another | ||||||
19 | location in
the State, provided that existing operations of a | ||||||
20 | similar nature located within
the State are not closed or | ||||||
21 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
22 | from moving its operations from one location in the State to | ||||||
23 | another
location in the State for the purpose of expanding the | ||||||
24 | operation provided that
the Department determines that | ||||||
25 | expansion cannot reasonably be accommodated
within the | ||||||
26 | municipality in which the business is located, or in the case |
| |||||||
| |||||||
1 | of a
business located in an incorporated area of the county, | ||||||
2 | within the county in
which the business is located, after | ||||||
3 | conferring with the chief elected
official of the municipality | ||||||
4 | or county and taking into consideration any
evidence offered by | ||||||
5 | the municipality or county regarding the ability to
accommodate | ||||||
6 | expansion within the municipality or county.
| ||||||
7 | "Committee" means the Illinois Business Investment | ||||||
8 | Committee created under
Section 5-25 of this Act within the | ||||||
9 | Illinois Economic Development Board.
| ||||||
10 | "Credit" means the amount agreed to between the Department | ||||||
11 | and Applicant
under this Act, but not to exceed the lesser of: | ||||||
12 | (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
13 | attributable to
the Applicant's project and (ii) 10% of the | ||||||
14 | training costs of New Employees; or (2) 100% of the Incremental | ||||||
15 | Income Tax attributable to
the Applicant's project. However, if | ||||||
16 | the project is located in an underserved area, then the amount | ||||||
17 | of the Credit may not exceed the lesser of: (1) the sum of (i) | ||||||
18 | 75% of the Incremental Income Tax attributable to
the | ||||||
19 | Applicant's project and (ii) 10% of the training costs of New | ||||||
20 | Employees; or (2) 100% of the Incremental Income Tax | ||||||
21 | attributable to
the Applicant's project .
| ||||||
22 | "Department" means the Department of Commerce and Economic | ||||||
23 | Opportunity.
| ||||||
24 | "Director" means the Director of Commerce and Economic | ||||||
25 | Opportunity.
| ||||||
26 | "Full-time Employee" means an individual who is employed |
| |||||||
| |||||||
1 | for consideration
for at least 35 hours each week or who | ||||||
2 | renders any other standard of service
generally accepted by | ||||||
3 | industry custom or practice as full-time employment. An | ||||||
4 | individual for whom a W-2 is issued by a Professional Employer | ||||||
5 | Organization (PEO) is a full-time employee if employed in the | ||||||
6 | service of the Applicant for consideration for at least 35 | ||||||
7 | hours each week or who renders any other standard of service | ||||||
8 | generally accepted by industry custom or practice as full-time | ||||||
9 | employment to Applicant.
| ||||||
10 | "Incremental Income Tax" means the total amount withheld | ||||||
11 | during the taxable
year from the compensation of New Employees | ||||||
12 | under Article 7 of the Illinois
Income Tax Act arising from | ||||||
13 | employment at a project that is the subject of an
Agreement.
| ||||||
14 | "New Employee" means:
| ||||||
15 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
16 | in the project
that is the subject of an Agreement and who | ||||||
17 | is hired after the Taxpayer
enters into the tax credit | ||||||
18 | Agreement.
| ||||||
19 | (b) The term "New Employee" does not include:
| ||||||
20 | (1) an employee of the Taxpayer who performs a job | ||||||
21 | that was previously
performed by another employee, if | ||||||
22 | that job existed for at least 6
months before hiring | ||||||
23 | the employee;
| ||||||
24 | (2) an employee of the Taxpayer who was previously | ||||||
25 | employed in
Illinois by a Related Member of the | ||||||
26 | Taxpayer and whose employment was
shifted to the |
| |||||||
| |||||||
1 | Taxpayer after the Taxpayer entered into the tax credit
| ||||||
2 | Agreement; or
| ||||||
3 | (3) a child, grandchild, parent, or spouse, other | ||||||
4 | than a spouse who
is legally separated from the | ||||||
5 | individual, of any individual who has a direct
or an | ||||||
6 | indirect ownership interest of at least 5% in the | ||||||
7 | profits, capital, or
value of the Taxpayer.
| ||||||
8 | (c) Notwithstanding paragraph (1) of subsection (b), | ||||||
9 | an employee may be
considered a New Employee under the | ||||||
10 | Agreement if the employee performs a job
that was | ||||||
11 | previously performed by an employee who was:
| ||||||
12 | (1) treated under the Agreement as a New Employee; | ||||||
13 | and
| ||||||
14 | (2) promoted by the Taxpayer to another job.
| ||||||
15 | (d) Notwithstanding subsection (a), the Department may | ||||||
16 | award Credit to an
Applicant with respect to an employee | ||||||
17 | hired prior to the date of the Agreement
if:
| ||||||
18 | (1) the Applicant is in receipt of a letter from | ||||||
19 | the Department stating
an
intent to enter into a credit | ||||||
20 | Agreement;
| ||||||
21 | (2) the letter described in paragraph (1) is issued | ||||||
22 | by the
Department not later than 15 days after the | ||||||
23 | effective date of this Act; and
| ||||||
24 | (3) the employee was hired after the date the | ||||||
25 | letter described in
paragraph (1) was issued.
| ||||||
26 | "Noncompliance Date" means, in the case of a Taxpayer that |
| |||||||
| |||||||
1 | is not complying
with the requirements of the Agreement or the | ||||||
2 | provisions of this Act, the day
following the last date upon | ||||||
3 | which the Taxpayer was in compliance with the
requirements of | ||||||
4 | the Agreement and the provisions of this Act, as determined
by | ||||||
5 | the Director, pursuant to Section 5-65.
| ||||||
6 | "Pass Through Entity" means an entity that is exempt from | ||||||
7 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
8 | Illinois Income Tax Act.
| ||||||
9 | "Professional Employer Organization" (PEO) means an | ||||||
10 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
11 | the Illinois Unemployment Insurance Act.
| ||||||
12 | "Related Member" means a person that, with respect to the | ||||||
13 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
14 | the following:
| ||||||
15 | (1) An individual stockholder, if the stockholder and | ||||||
16 | the members of the
stockholder's family (as defined in | ||||||
17 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
18 | indirectly, beneficially, or constructively, in the | ||||||
19 | aggregate,
at least 50% of the value of the Taxpayer's | ||||||
20 | outstanding stock.
| ||||||
21 | (2) A partnership, estate, or trust and any partner or | ||||||
22 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
23 | partners or beneficiaries own
directly, indirectly, | ||||||
24 | beneficially, or constructively, in the aggregate, at
| ||||||
25 | least 50% of the profits, capital, stock, or value of the
| ||||||
26 | Taxpayer.
|
| |||||||
| |||||||
1 | (3) A corporation, and any party related to the | ||||||
2 | corporation in a manner
that would require an attribution | ||||||
3 | of stock from the corporation to the
party or from the | ||||||
4 | party to the corporation under the attribution rules
of | ||||||
5 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
6 | owns
directly, indirectly, beneficially, or constructively | ||||||
7 | at least
50% of the value of the corporation's outstanding | ||||||
8 | stock.
| ||||||
9 | (4) A corporation and any party related to that | ||||||
10 | corporation in a manner
that would require an attribution | ||||||
11 | of stock from the corporation to the party or
from the | ||||||
12 | party to the corporation under the attribution rules of | ||||||
13 | Section 318 of
the Internal Revenue Code, if the | ||||||
14 | corporation and all such related parties own
in the | ||||||
15 | aggregate at least 50% of the profits, capital, stock, or | ||||||
16 | value of the
Taxpayer.
| ||||||
17 | (5) A person to or from whom there is attribution of | ||||||
18 | stock ownership
in accordance with Section 1563(e) of the | ||||||
19 | Internal Revenue Code, except,
for purposes of determining | ||||||
20 | whether a person is a Related Member under
this paragraph, | ||||||
21 | 20% shall be substituted for 5% wherever 5% appears in
| ||||||
22 | Section 1563(e) of the Internal Revenue Code.
| ||||||
23 | "Taxpayer" means an individual, corporation, partnership, | ||||||
24 | or other entity
that has any Illinois Income Tax liability.
| ||||||
25 | "Underserved area" means a geographic area that meets one | ||||||
26 | or more of the following conditions: |
| |||||||
| |||||||
1 | (1) the area has a poverty rate of at least 20% | ||||||
2 | according to the latest federal decennial census; | ||||||
3 | (2) 50% or more of the children in the area participate | ||||||
4 | in the federal free lunch program according to reported | ||||||
5 | statistics from the State Board of Education; | ||||||
6 | (3) at least 20% of the households in the area receive | ||||||
7 | assistance under the Supplemental Nutrition Assistance | ||||||
8 | Program (SNAP); or | ||||||
9 | (4) the area has
an average unemployment rate, as | ||||||
10 | determined by the Illinois Department of
Employment | ||||||
11 | Security, that is more than 120% of the national | ||||||
12 | unemployment average, as
determined by the U.S. Department | ||||||
13 | of Labor, for a period of at least 2 consecutive calendar | ||||||
14 | years preceding the date of the application. | ||||||
15 | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
| ||||||
16 | (35 ILCS 10/5-10)
| ||||||
17 | Sec. 5-10. Powers of the Department. The Department, in
| ||||||
18 | addition to those powers
granted under the Civil Administrative | ||||||
19 | Code of Illinois, is granted and shall
have all the powers | ||||||
20 | necessary
or convenient to carry out and effectuate the | ||||||
21 | purposes and provisions of this
Act, including, but not limited
| ||||||
22 | to, power and authority to:
| ||||||
23 | (a) Promulgate procedures, rules, or regulations deemed | ||||||
24 | necessary and
appropriate for the
administration of the | ||||||
25 | programs; establish forms for applications,
notifications, |
| |||||||
| |||||||
1 | contracts, or any other
agreements; and accept applications at | ||||||
2 | any time during the year.
| ||||||
3 | (b) Provide and assist Taxpayers pursuant to the
provisions | ||||||
4 | of this Act, and
cooperate with Taxpayers that are parties to | ||||||
5 | Agreements
to promote, foster, and
support economic | ||||||
6 | development, capital investment, and job creation or retention
| ||||||
7 | within the State.
| ||||||
8 | (c) Enter into agreements and memoranda of understanding | ||||||
9 | for participation
of and engage in
cooperation with agencies of | ||||||
10 | the federal government, local units of government,
| ||||||
11 | universities, research
foundations or institutions, regional | ||||||
12 | economic development corporations, or
other organizations for | ||||||
13 | the
purposes of this Act.
| ||||||
14 | (d) Gather information and conduct inquiries, in the manner | ||||||
15 | and by the
methods as it deems desirable,
including without | ||||||
16 | limitation, gathering information with respect to
Applicants | ||||||
17 | for the
purpose of making any designations or certifications | ||||||
18 | necessary or desirable or
to gather information to
assist the | ||||||
19 | Committee with any recommendation or guidance in the | ||||||
20 | furtherance of
the purposes of this Act.
| ||||||
21 | (e) Establish, negotiate and effectuate any term, | ||||||
22 | agreement or other
document with any person,
necessary or | ||||||
23 | appropriate to accomplish the purposes of this Act; and to
| ||||||
24 | consent, subject to the provisions
of any Agreement with | ||||||
25 | another party, to the modification or restructuring of
any | ||||||
26 | Agreement to which the
Department is a party.
|
| |||||||
| |||||||
1 | (f) Fix, determine, charge, and collect any premiums, fees, | ||||||
2 | charges, costs,
and expenses from Applicants,
including, | ||||||
3 | without limitation,
any
application fees,
commitment fees, | ||||||
4 | program fees, financing charges, or publication fees as deemed
| ||||||
5 | appropriate to pay
expenses necessary or incident to the | ||||||
6 | administration, staffing, or operation in
connection with the
| ||||||
7 | Department's or Committee's activities under this Act, or for | ||||||
8 | preparation,
implementation, and
enforcement of the terms of | ||||||
9 | the Agreement, or for consultation, advisory and
legal fees, | ||||||
10 | and other costs;
however, all fees and expenses incident | ||||||
11 | thereto shall be the responsibility of
the Applicant.
| ||||||
12 | (g) Provide for sufficient personnel to permit | ||||||
13 | administration, staffing,
operation, and related support
| ||||||
14 | required to adequately discharge its duties and | ||||||
15 | responsibilities described in
this Act from funds made
| ||||||
16 | available through charges to Applicants
or from funds as
may be | ||||||
17 | appropriated by the General Assembly for the administration of | ||||||
18 | this Act.
| ||||||
19 | (h) Require Applicants, upon written request, to
issue any | ||||||
20 | necessary
authorization to the appropriate federal, state, or | ||||||
21 | local authority for the
release of information concerning a
| ||||||
22 | project being considered under the
provisions of this Act, with | ||||||
23 | the
information requested to include, but not be limited to, | ||||||
24 | financial reports,
returns, or records relating to the
| ||||||
25 | Taxpayers' or its project.
| ||||||
26 | (i) Require that a Taxpayer shall at all times
keep proper |
| |||||||
| |||||||
1 | books
of record and account in accordance with generally | ||||||
2 | accepted accounting
principles consistently applied,
with the | ||||||
3 | books, records, or papers related to the Agreement in the | ||||||
4 | custody or
control of the Taxpayer open for
reasonable | ||||||
5 | Department inspection and audits, and including, without | ||||||
6 | limitation,
the making of copies of the
books, records, or | ||||||
7 | papers, and the inspection or appraisal of any of the
Taxpayer | ||||||
8 | or project assets.
| ||||||
9 | (j) Take whatever actions are necessary or appropriate to | ||||||
10 | protect the
State's interest in the
event of bankruptcy, | ||||||
11 | default, foreclosure, or noncompliance with the terms and
| ||||||
12 | conditions of financial
assistance or participation required | ||||||
13 | under this Act, including the power to
sell, dispose, lease, or | ||||||
14 | rent, upon
terms and conditions determined by the Director to | ||||||
15 | be appropriate, real or
personal property that the
Department | ||||||
16 | may receive as a result of these actions.
| ||||||
17 | (Source: P.A. 91-476, eff. 8-11-99.)
| ||||||
18 | (35 ILCS 10/5-15) | ||||||
19 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
20 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
21 | or, as described in subsection (g) of this Section, a payment | ||||||
22 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
23 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
24 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
25 | January 1, 1999,
if the Taxpayer is awarded a Credit by the |
| |||||||
| |||||||
1 | Department under this Act for that
taxable year. | ||||||
2 | (a) The Department shall make Credit awards under this Act | ||||||
3 | to foster job
creation and retention in Illinois. | ||||||
4 | (b) A person that proposes a project to create new jobs in | ||||||
5 | Illinois must
enter into an Agreement with the
Department for | ||||||
6 | the Credit under this Act. | ||||||
7 | (c) The Credit shall be claimed for the taxable years | ||||||
8 | specified in the
Agreement. | ||||||
9 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
10 | attributable to
the project that is the subject of the | ||||||
11 | Agreement. | ||||||
12 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
13 | Applicant that uses a PEO if all other award criteria are | ||||||
14 | satisfied.
| ||||||
15 | (f) In lieu of the Credit allowed under this Act against | ||||||
16 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
17 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
18 | ending on or after December 31, 2009, for Taxpayers that | ||||||
19 | entered into Agreements prior to January 1, 2015 and otherwise | ||||||
20 | meet the criteria set forth in this subsection (f), the | ||||||
21 | Taxpayer may elect to claim the Credit against its obligation | ||||||
22 | to pay over withholding under Section 704A of the Illinois | ||||||
23 | Income Tax Act. | ||||||
24 | (1) The election under this subsection (f) may be made | ||||||
25 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
26 | the following business activities: water purification and |
| |||||||
| |||||||
1 | treatment, motor vehicle metal stamping, automobile | ||||||
2 | manufacturing, automobile and light duty motor vehicle | ||||||
3 | manufacturing, motor vehicle manufacturing, light truck | ||||||
4 | and utility vehicle manufacturing, heavy duty truck | ||||||
5 | manufacturing, motor vehicle body manufacturing, cable | ||||||
6 | television infrastructure design or manufacturing, or | ||||||
7 | wireless telecommunication or computing terminal device | ||||||
8 | design or manufacturing for use on public networks and (ii) | ||||||
9 | meets the following criteria: | ||||||
10 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
11 | Illinois net loss deduction under Section 207 of the | ||||||
12 | Illinois Income Tax Act for the taxable year in which | ||||||
13 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
14 | full-time employees in this State during the taxable | ||||||
15 | year in which the Credit is awarded, (iii) has an | ||||||
16 | Agreement under this Act on December 14, 2009 (the | ||||||
17 | effective date of Public Act 96-834), and (iv) is in | ||||||
18 | compliance with all provisions of that Agreement; | ||||||
19 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
20 | Illinois net loss deduction under Section 207 of the | ||||||
21 | Illinois Income Tax Act for the taxable year in which | ||||||
22 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
23 | full-time employees in this State during the taxable | ||||||
24 | year in which the Credit is awarded, and (iii) has | ||||||
25 | applied for an Agreement within 365 days after December | ||||||
26 | 14, 2009 (the effective date of Public Act 96-834); |
| |||||||
| |||||||
1 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
2 | loss carryforward under Section 207 of the Illinois | ||||||
3 | Income Tax Act in a taxable year ending during calendar | ||||||
4 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
5 | days after the effective date of this amendatory Act of | ||||||
6 | the 96th General Assembly, (iii) creates at least 400 | ||||||
7 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
8 | in Illinois that would have been at risk of relocation | ||||||
9 | out of Illinois over a 10-year period, and (v) makes a | ||||||
10 | capital investment of at least $75,000,000; | ||||||
11 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
12 | loss carryforward under Section 207 of the Illinois | ||||||
13 | Income Tax Act in a taxable year ending during calendar | ||||||
14 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
15 | days after the effective date of this amendatory Act of | ||||||
16 | the 96th General Assembly, (iii) creates at least 150 | ||||||
17 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
18 | that would have been at risk of relocation out of | ||||||
19 | Illinois over a 10-year period, and (v) makes a capital | ||||||
20 | investment of at least $57,000,000; or | ||||||
21 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
22 | full-time employees in the State during the year in | ||||||
23 | which the Credit is awarded, (ii) commits to make at | ||||||
24 | least $500,000,000 in combined capital improvements | ||||||
25 | and project costs under the Agreement, (iii) applies | ||||||
26 | for an Agreement between January 1, 2011 and June 30, |
| |||||||
| |||||||
1 | 2011, (iv) executes an Agreement for the Credit during | ||||||
2 | calendar year 2011, and (v) was incorporated no more | ||||||
3 | than 5 years before the filing of an application for an | ||||||
4 | Agreement. | ||||||
5 | (1.5) The election under this subsection (f) may also | ||||||
6 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
7 | agreement that was executed between January 1, 2011 and | ||||||
8 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
9 | the manufacture of inner tubes or tires, or both, from | ||||||
10 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
11 | 2,400 full-time employees in Illinois at the time of | ||||||
12 | application, (iii) creates at least 350 full-time jobs and | ||||||
13 | retains at least 250 full-time jobs in Illinois that would | ||||||
14 | have been at risk of being created or retained outside of | ||||||
15 | Illinois, and (iv) makes a capital investment of at least | ||||||
16 | $200,000,000 at the project location. | ||||||
17 | (1.6) The election under this subsection (f) may also | ||||||
18 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
19 | agreement that was executed within 150 days after the | ||||||
20 | effective date of this amendatory Act of the 97th General | ||||||
21 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
22 | operation of a discount department store, (ii) maintains | ||||||
23 | its corporate headquarters in Illinois, (iii) employs a | ||||||
24 | minimum of 4,250 full-time employees at its corporate | ||||||
25 | headquarters in Illinois at the time of application, (iv) | ||||||
26 | retains at least 4,250 full-time jobs in Illinois that |
| |||||||
| |||||||
1 | would have been at risk of being relocated outside of | ||||||
2 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
3 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
4 | least $300,000,000 at the project location. | ||||||
5 | (1.7) Notwithstanding any other provision of law, the | ||||||
6 | election under this subsection (f) may also be made by a | ||||||
7 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
8 | that was executed or applied for on or after July 1, 2011 | ||||||
9 | and on or before March 31, 2012, if the Taxpayer is | ||||||
10 | primarily engaged in the manufacture of original and | ||||||
11 | aftermarket filtration parts and products for automobiles, | ||||||
12 | motor vehicles, light duty motor vehicles, light trucks and | ||||||
13 | utility vehicles, and heavy duty trucks, (ii) employs a | ||||||
14 | minimum of 1,000 full-time employees in Illinois at the | ||||||
15 | time of application, (iii) creates at least 250 full-time | ||||||
16 | jobs in Illinois, (iv) relocates its corporate | ||||||
17 | headquarters to Illinois from another state, and (v) makes | ||||||
18 | a capital investment of at least $4,000,000 at the project | ||||||
19 | location. | ||||||
20 | (2) An election under this subsection shall allow the | ||||||
21 | credit to be taken against payments otherwise due under | ||||||
22 | Section 704A of the Illinois Income Tax Act during the | ||||||
23 | first calendar year beginning after the end of the taxable | ||||||
24 | year in which the credit is awarded under this Act. | ||||||
25 | (3) The election shall be made in the form and manner | ||||||
26 | required by the Illinois Department of Revenue and, once |
| |||||||
| |||||||
1 | made, shall be irrevocable. | ||||||
2 | (4) If a Taxpayer who meets the requirements of | ||||||
3 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
4 | elects to claim the Credit against its withholdings as | ||||||
5 | provided in this subsection (f), then, on and after the | ||||||
6 | date of the election, the terms of the Agreement between | ||||||
7 | the Taxpayer and the Department may not be further amended | ||||||
8 | during the term of the Agreement. | ||||||
9 | (g) A pass-through entity that has been awarded a credit | ||||||
10 | under this Act, its shareholders, or its partners may treat | ||||||
11 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
12 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
13 | "tax payment" means a payment as described in Article 6 or | ||||||
14 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
15 | made by a pass-through entity on behalf of any of its | ||||||
16 | shareholders or partners to satisfy such shareholders' or | ||||||
17 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
18 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
19 | the amount of the award credited pursuant to this Act exceed | ||||||
20 | the Illinois income tax liability of the pass-through entity or | ||||||
21 | its shareholders or partners for the taxable year. | ||||||
22 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
23 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
24 | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| ||||||
25 | (35 ILCS 10/5-20)
|
| |||||||
| |||||||
1 | Sec. 5-20. Application for a project to create and retain | ||||||
2 | new jobs.
| ||||||
3 | (a) Any Taxpayer proposing a project located or planned to | ||||||
4 | be located in
Illinois may request consideration
for | ||||||
5 | designation of its project, by formal written letter of request | ||||||
6 | or by
formal application to the Department,
in which the | ||||||
7 | Applicant states its intent to make at least a specified level | ||||||
8 | of
investment and
intends to hire or retain a
specified number | ||||||
9 | of full-time employees at a designated location in Illinois.
As
| ||||||
10 | circumstances require, the
Department may require a formal | ||||||
11 | application from an Applicant and a formal
letter of request | ||||||
12 | for
assistance.
| ||||||
13 | (b) In order to qualify for Credits under this Act, an | ||||||
14 | Applicant's project
must:
| ||||||
15 | (1) if the Applicant has more than 100 employees, | ||||||
16 | involve an investment of at least $2,500,000 $5,000,000 in | ||||||
17 | capital improvements
to be placed in service and to employ | ||||||
18 | at least 25 New Employees within the
State as a direct | ||||||
19 | result of the project; if the Applicant has 100 or fewer | ||||||
20 | employees, then there is no capital investment | ||||||
21 | requirement; and
| ||||||
22 | (1.5) if the Applicant has more than 100 employees, | ||||||
23 | employ a number of new employees in the State equal to the | ||||||
24 | lesser of (A) 10% of the number of full-time employees | ||||||
25 | employed by the applicant world-wide on the date the | ||||||
26 | application is filed with the Department or (B) 50 New |
| |||||||
| |||||||
1 | Employees; and, if the Applicant has 100 or fewer | ||||||
2 | employees, employ a number of new employees in the State | ||||||
3 | equal to the lesser of (A) 5% of the number of full-time | ||||||
4 | employees employed by the applicant world-wide on the date | ||||||
5 | the application is filed with the Department or (B) 50 New | ||||||
6 | Employees;
| ||||||
7 | (2) (blank); involve an investment of at least an | ||||||
8 | amount (to be expressly specified
by the Department and the | ||||||
9 | Committee) in capital improvements to be placed in
service | ||||||
10 | and will employ at least an amount (to be expressly | ||||||
11 | specified by the
Department and the Committee) of New | ||||||
12 | Employees
within the State, provided that the Department | ||||||
13 | and the Committee have
determined that the project will | ||||||
14 | provide a substantial economic benefit to the
State; or | ||||||
15 | (3) (blank). if the applicant has 100 or fewer | ||||||
16 | employees, involve an investment of at least $1,000,000 in | ||||||
17 | capital improvements to be placed in service and to employ | ||||||
18 | at least 5 New Employees within the State as a direct | ||||||
19 | result of the project.
| ||||||
20 | (c) After receipt of an application, the Department may | ||||||
21 | enter into an
Agreement with the Applicant if the
application | ||||||
22 | is accepted in accordance with Section 5-25.
| ||||||
23 | (Source: P.A. 93-882, eff. 1-1-05.)
| ||||||
24 | (35 ILCS 10/5-25)
| ||||||
25 | Sec. 5-25. Review of Application.
|
| |||||||
| |||||||
1 | (a) In addition to those duties granted under the Illinois | ||||||
2 | Economic
Development Board Act, the Illinois
Economic | ||||||
3 | Development Board shall form a Business Investment Committee | ||||||
4 | for the
purpose of making
recommendations for applications. At | ||||||
5 | the request of the Board, the Director of
Commerce and
Economic | ||||||
6 | Opportunity or his or her designee, the Director of the
| ||||||
7 | Governor's Office of Management and Budget or
his or her | ||||||
8 | designee, the
Director of Revenue or his or her designee, the | ||||||
9 | Director of Employment
Security or his or her designee,
and an | ||||||
10 | elected official of the affected locality, such as the chair of | ||||||
11 | the
county board or the mayor, may
serve as members of the | ||||||
12 | Committee to assist with its analysis and
deliberations.
| ||||||
13 | (b) At the Department's request, the Committee
shall
| ||||||
14 | convene, make inquiries,
and conduct studies in the manner and | ||||||
15 | by the methods as it deems desirable,
review information with
| ||||||
16 | respect to Applicants, and make recommendations for
projects to | ||||||
17 | benefit the State. In making its recommendation that
an | ||||||
18 | Applicant's application for Credit should or should not be | ||||||
19 | accepted, which
shall occur
within a reasonable time frame
as | ||||||
20 | determined by the nature of the application, the Committee | ||||||
21 | shall determine
that
all the following conditions
exist:
| ||||||
22 | (1) The Applicant's project intends, as required by | ||||||
23 | subsection (b) of
Section 5-20 to make
the required | ||||||
24 | investment in the State and intends to hire the required
| ||||||
25 | number of
New Employees in Illinois as a result of that | ||||||
26 | project.
|
| |||||||
| |||||||
1 | (2) The Applicant's project is economically sound and | ||||||
2 | will benefit the
people of the State of
Illinois by | ||||||
3 | increasing opportunities for employment and strengthen the | ||||||
4 | economy
of Illinois.
| ||||||
5 | (3) That, if not for the Credit, the project would not | ||||||
6 | occur in Illinois,
which may be demonstrated
by evidence | ||||||
7 | that receipt of the Credit is essential to the Applicant's | ||||||
8 | decision to create new jobs in the State, such as the | ||||||
9 | magnitude of the cost differential between Illinois and a | ||||||
10 | competing State any means including, but not limited to, | ||||||
11 | evidence the Applicant has
multi-state
location options | ||||||
12 | and
could reasonably and efficiently locate outside of the | ||||||
13 | State, or demonstration
that at least one other
state is | ||||||
14 | being considered for the project, or evidence the receipt | ||||||
15 | of the
Credit is a major factor in
the Applicant's decision | ||||||
16 | and that without the Credit,
the Applicant likely would not
| ||||||
17 | create new jobs in Illinois, or demonstration that | ||||||
18 | receiving the Credit is
essential to the Applicant's
| ||||||
19 | decision to create or retain new jobs in the State .
| ||||||
20 | (4) A cost differential is identified, using best | ||||||
21 | available
data, in the projected costs for the Applicant's | ||||||
22 | project compared to
the costs in the competing state, | ||||||
23 | including the impact of the competing
state's incentive | ||||||
24 | programs. The competing state's incentive
programs shall | ||||||
25 | include state, local, private, and federal funds
| ||||||
26 | available.
|
| |||||||
| |||||||
1 | (5) The political subdivisions affected by the project | ||||||
2 | have
committed local incentives with respect to the | ||||||
3 | project, considering local
ability to assist.
| ||||||
4 | (6) Awarding the Credit will result in an overall | ||||||
5 | positive fiscal
impact to the State, as certified by the | ||||||
6 | Committee using
the best
available data.
| ||||||
7 | (7) The Credit is not prohibited by Section 5-35 of | ||||||
8 | this Act.
| ||||||
9 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
10 | (35 ILCS 10/5-50)
| ||||||
11 | Sec. 5-50. Contents of Agreements with Applicants. The | ||||||
12 | Department shall
enter into an Agreement with an
Applicant that | ||||||
13 | is awarded a Credit under this Act. The Agreement
must include | ||||||
14 | all of the following:
| ||||||
15 | (1) A detailed description of the project that is the | ||||||
16 | subject of the
Agreement, including the location and amount | ||||||
17 | of the investment and jobs created
or retained.
| ||||||
18 | (2) The duration of the Credit and the first taxable | ||||||
19 | year for which
the Credit may be claimed.
| ||||||
20 | (3) The Credit amount that will be allowed for each | ||||||
21 | taxable year.
| ||||||
22 | (4) A requirement that the Taxpayer shall maintain | ||||||
23 | operations at the
project location that shall be stated as | ||||||
24 | a minimum number of years not to
exceed 10.
| ||||||
25 | (5) A specific method for determining the number of New |
| |||||||
| |||||||
1 | Employees
employed during a taxable year.
| ||||||
2 | (6) A requirement that the Taxpayer shall annually | ||||||
3 | report to the
Department the number of New Employees,
the | ||||||
4 | Incremental Income Tax
withheld in connection with the New | ||||||
5 | Employees, and any other
information the Director needs to | ||||||
6 | perform the Director's duties under
this Act.
| ||||||
7 | (7) A requirement that the Director is authorized to | ||||||
8 | verify with the
appropriate State agencies the amounts | ||||||
9 | reported under paragraph
(6), and after doing so shall | ||||||
10 | issue a certificate to the Taxpayer
stating that the | ||||||
11 | amounts have been verified.
| ||||||
12 | (8) A requirement that the Taxpayer shall provide | ||||||
13 | written
notification to the Director not more than 30
days | ||||||
14 | after the Taxpayer makes or receives a proposal that would
| ||||||
15 | transfer the Taxpayer's State tax liability obligations to | ||||||
16 | a
successor Taxpayer.
| ||||||
17 | (9) A detailed description of the number of New | ||||||
18 | Employees to be
hired, and the occupation and
payroll of | ||||||
19 | the full-time jobs to be created or retained as a result of | ||||||
20 | the
project.
| ||||||
21 | (10) The minimum investment the business enterprise | ||||||
22 | will make in
capital improvements, the time period
for | ||||||
23 | placing the property in service, and the designated | ||||||
24 | location in Illinois
for the investment.
| ||||||
25 | (11) A requirement that the Taxpayer shall provide | ||||||
26 | written
notification to the Director and
the Committee not |
| |||||||
| |||||||
1 | more than 30 days after the Taxpayer determines
that the | ||||||
2 | minimum
job creation or retention , employment payroll, or | ||||||
3 | investment no longer is being
or will be achieved or
| ||||||
4 | maintained as set forth in the terms and conditions of the
| ||||||
5 | Agreement.
| ||||||
6 | (12) A provision that, if the total number of New | ||||||
7 | Employees falls
below a specified level, the
allowance of | ||||||
8 | Credit shall be suspended until the number of New
Employees | ||||||
9 | equals or exceeds
the Agreement amount.
| ||||||
10 | (13) A detailed description of the items for which the | ||||||
11 | costs incurred by
the Taxpayer will be included
in the | ||||||
12 | limitation on the Credit provided in Section 5-30.
| ||||||
13 | (13.5) A provision that, if the Taxpayer never meets | ||||||
14 | either the investment or job creation and retention | ||||||
15 | requirements specified in the Agreement during the entire | ||||||
16 | 5-year period beginning on the first day of the first | ||||||
17 | taxable year in which the Agreement is executed and ending | ||||||
18 | on the last day of the fifth taxable year after the | ||||||
19 | Agreement is executed, then the Agreement is automatically | ||||||
20 | terminated on the last day of the fifth taxable year after | ||||||
21 | the Agreement is executed and the Taxpayer is not entitled | ||||||
22 | to the award of any credits for any of that 5-year period.
| ||||||
23 | (14) Any other performance conditions or contract | ||||||
24 | provisions as the
Department determines are
appropriate.
| ||||||
25 | The Department shall post on its website the terms of each | ||||||
26 | Agreement entered into under this Act on or after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 97th General Assembly. Such | ||||||
2 | information shall be posted within 10 days after entering into | ||||||
3 | the Agreement and must include the following: | ||||||
4 | (1) the name of the recipient business; | ||||||
5 | (2) the location of the project; | ||||||
6 | (3) the estimated value of the credit; | ||||||
7 | (4) the number of new jobs pledged as a result of the | ||||||
8 | project; and | ||||||
9 | (5) whether or not the project is located in an | ||||||
10 | underserved area. | ||||||
11 | (Source: P.A. 97-2, eff. 5-6-11; 97-749, eff. 7-6-12.)
| ||||||
12 | (35 ILCS 10/5-57 new) | ||||||
13 | Sec. 5-57. Supplier diversity goals; reports. Each | ||||||
14 | taxpayer claiming a credit under this Act shall, no later than | ||||||
15 | April 15 of each taxable year for which the taxpayer claims a | ||||||
16 | credit under this Act, submit to the Department of Commerce and | ||||||
17 | Economic Opportunity an annual report containing the | ||||||
18 | information described in subsections (b), (c), (d), and (e) of | ||||||
19 | Section 5-117 of the Public Utilities Act. Those reports shall | ||||||
20 | be submitted in the form and manner required by the Department | ||||||
21 | of Commerce and Economic Opportunity.
| ||||||
22 | (35 ILCS 10/5-65)
| ||||||
23 | Sec. 5-65. Noncompliance; notice; assessment. If the | ||||||
24 | Director determines
that a Taxpayer who
has received a Credit |
| |||||||
| |||||||
1 | under this Act is not complying with the
requirements of the | ||||||
2 | Agreement or all of the provisions of
this Act, the Director | ||||||
3 | shall provide notice to the Taxpayer of the alleged
| ||||||
4 | noncompliance, and allow the
Taxpayer a hearing under the | ||||||
5 | provisions of the Illinois Administrative
Procedure Act. If, | ||||||
6 | after
such notice and any hearing, the Director determines that | ||||||
7 | a
noncompliance exists, the Director shall issue to the | ||||||
8 | Department of Revenue
notice to that effect, stating the | ||||||
9 | Noncompliance Date. If the Taxpayer ceases operations at a | ||||||
10 | project location that is the subject of an Agreement with the | ||||||
11 | intent to terminate operations in the State, then the Taxpayer | ||||||
12 | shall be subject to the provisions of the Keep Illinois | ||||||
13 | Business Act.
| ||||||
14 | (Source: P.A. 91-476, eff. 8-11-99.)
| ||||||
15 | (35 ILCS 10/5-70)
| ||||||
16 | Sec. 5-70. Annual report. On or before July 1 each year, | ||||||
17 | the Committee
shall submit a report to the Department on the | ||||||
18 | tax credit program under this
Act to the Governor and the | ||||||
19 | General Assembly. The report shall include
information on the | ||||||
20 | number of
Agreements that were entered into under this Act | ||||||
21 | during the
preceding calendar year, a description of the | ||||||
22 | project that is the
subject of each Agreement, an update on the | ||||||
23 | status of projects under
Agreements entered into before the | ||||||
24 | preceding calendar year, and the
sum of the Credits awarded | ||||||
25 | under this Act. A copy of the report shall
be delivered to the |
| |||||||
| |||||||
1 | Governor and to each
member of the General Assembly.
| ||||||
2 | The report must include, for each Agreement: | ||||||
3 | (1) the original estimates of the value of the Credit | ||||||
4 | and the number of new jobs to be created; | ||||||
5 | (2) any relevant modifications to existing Agreements; | ||||||
6 | (3) a statement of the progress made by each Taxpayer | ||||||
7 | in meeting the terms of the original Agreement; | ||||||
8 | (4) a statement of wages paid to New Employees and | ||||||
9 | existing employees in the State; | ||||||
10 | (5) any information reported under Section 5-57 of this | ||||||
11 | Act; and | ||||||
12 | (6) a copy of the original Agreement. | ||||||
13 | (Source: P.A. 91-476, eff. 8-11-99.)
| ||||||
14 | (35 ILCS 10/5-77) | ||||||
15 | Sec. 5-77. Sunset of new Agreements. The Department shall | ||||||
16 | not enter into any new Agreements under the provisions of | ||||||
17 | Section 5-50 of this Act after April 30, 2022 April 30, 2017 .
| ||||||
18 | (Source: P.A. 99-925, eff. 1-20-17.)
| ||||||
19 | ARTICLE 15. FILM AND THEATER TAX CREDITS | ||||||
20 | Section 15-5. The Film
Production Services Tax Credit Act | ||||||
21 | of 2008 is amended by changing Sections 35 and 45 as follows:
| ||||||
22 | (35 ILCS 16/35)
|
| |||||||
| |||||||
1 | Sec. 35. Issuance of Tax Credit Certificate.
| ||||||
2 | (a) In order to qualify for a tax credit under this Act, an | ||||||
3 | applicant must
file an application, on forms prescribed by the | ||||||
4 | Department, providing
information necessary to calculate the | ||||||
5 | tax credit, and any additional
information as required by the | ||||||
6 | Department.
As part of the application, the applicant must | ||||||
7 | commit to supplying the Department with the following | ||||||
8 | information, at a minimum:
| ||||||
9 | (1) an identification of each vendor that provides | ||||||
10 | goods or services that were included in the accredited | ||||||
11 | production's Illinois production spending; | ||||||
12 | (2) the amount of Illinois production spending | ||||||
13 | attributable to each vendor; and | ||||||
14 | (3) for each vendor identified under item (1), a | ||||||
15 | statement as to whether the vendor is a minority-owned | ||||||
16 | business or a female-owned business, as defined under | ||||||
17 | Section 2 of the Business Enterprise for Minorities, | ||||||
18 | Females, and Persons with Disabilities Act. | ||||||
19 | (b) Upon satisfactory review of the application, the | ||||||
20 | Department shall issue a
Tax Credit Certificate stating the | ||||||
21 | amount of the tax credit to which the
applicant is entitled.
| ||||||
22 | (Source: P.A. 95-720, eff. 5-27-08 .)
| ||||||
23 | (35 ILCS 16/45)
| ||||||
24 | Sec. 45. Evaluation of tax credit program; reports to the | ||||||
25 | General Assembly. |
| |||||||
| |||||||
1 | (a) The Department shall evaluate the tax credit program. | ||||||
2 | The evaluation must include an assessment of the effectiveness | ||||||
3 | of the program in creating and retaining new jobs in Illinois | ||||||
4 | and of the revenue impact of the program, and may include a | ||||||
5 | review of the practices and experiences of other states or | ||||||
6 | nations with similar programs. Upon completion of this | ||||||
7 | evaluation, the Department shall determine the overall success | ||||||
8 | of the program, and may make a recommendation to extend, | ||||||
9 | modify, or not extend the program based on this evaluation. | ||||||
10 | (b) At the end of each fiscal quarter, the Department must | ||||||
11 | submit to the General Assembly a report that includes, without | ||||||
12 | limitation, the following information: | ||||||
13 | (1) the economic impact of the tax credit program,
| ||||||
14 | including the number of jobs created and retained, | ||||||
15 | including whether the job positions are entry level, | ||||||
16 | management, talent-related, vendor-related, or | ||||||
17 | production-related; | ||||||
18 | (2) the amount of film production spending brought to
| ||||||
19 | Illinois, including the amount of spending and type of | ||||||
20 | Illinois vendors hired in connection with an accredited | ||||||
21 | production; and | ||||||
22 | (3) an overall picture of whether the human
| ||||||
23 | infrastructure of the motion picture industry in Illinois | ||||||
24 | reflects the geographical, racial and ethnic, gender, and | ||||||
25 | income-level diversity of the State of Illinois.
| ||||||
26 | (c) At the end of each fiscal year, the Department must
|
| |||||||
| |||||||
1 | submit to the General Assembly a report that includes, without | ||||||
2 | limitation, the following information: | ||||||
3 | (1) an identification of each vendor that provided
| ||||||
4 | goods or services that were included in an accredited | ||||||
5 | production's Illinois production spending and a statement | ||||||
6 | of whether the vendor is a minority-owned business or a | ||||||
7 | female-owned business, as defined under Section 2 of the | ||||||
8 | Business Enterprise for Minorities, Females, and Persons | ||||||
9 | with Disabilities Act ; | ||||||
10 | (2) the aggregate amount paid to all each identified | ||||||
11 | vendors vendor by the
accredited production; | ||||||
12 | (3) the aggregate amount paid to all identified vendors | ||||||
13 | that are for each identified vendor, a statement as to
| ||||||
14 | whether the vendor is a minority owned businesses business | ||||||
15 | or a female owned businesses business , as defined under | ||||||
16 | Section 2 of the Business Enterprise for Minorities, | ||||||
17 | Females, and Persons with Disabilities Act; and | ||||||
18 | (4) a description of any steps taken by the
Department | ||||||
19 | to encourage accredited productions to use vendors who are | ||||||
20 | a minority owned business or a female owned business.
| ||||||
21 | (Source: P.A. 95-720, eff. 5-27-08 .)
| ||||||
22 | Section 15-10. The Live Theater Production Tax Credit Act | ||||||
23 | is amended by changing Sections 10-40 and 10-50 as follows:
| ||||||
24 | (35 ILCS 17/10-40)
|
| |||||||
| |||||||
1 | Sec. 10-40. Issuance of Tax Credit Award Certificate.
| ||||||
2 | (a) In order to qualify for a tax credit award under this | ||||||
3 | Act, an applicant must file an application for each accredited | ||||||
4 | theater production at each of the applicant's qualified | ||||||
5 | production facilities, on forms prescribed by the Department, | ||||||
6 | providing information necessary to calculate the tax credit | ||||||
7 | award and any additional information as reasonably required by | ||||||
8 | the Department. As part of the application, the applicant must | ||||||
9 | commit to supplying the Department with the following | ||||||
10 | information, at a minimum: | ||||||
11 | (1) an identification of each vendor that provides | ||||||
12 | goods or services that were included in the accredited | ||||||
13 | production's Illinois production spending; | ||||||
14 | (2) the amount of Illinois production spending | ||||||
15 | attributable to each vendor; and | ||||||
16 | (3) for each vendor identified under item (1), a | ||||||
17 | statement as to whether the vendor is a minority-owned | ||||||
18 | business or a female-owned business, as defined under | ||||||
19 | Section 2 of the Business Enterprise for Minorities, | ||||||
20 | Females, and Persons with Disabilities Act. | ||||||
21 | (b) Upon satisfactory review of the application, the | ||||||
22 | Department shall issue a tax credit award certificate stating | ||||||
23 | the amount of the tax credit award to which the applicant is | ||||||
24 | entitled for that tax year and shall contemporaneously notify | ||||||
25 | the applicant and Illinois Department of Revenue in accordance | ||||||
26 | with Section 222 of the Illinois Income Tax Act.
|
| |||||||
| |||||||
1 | (Source: P.A. 97-636, eff. 6-1-12 .)
| ||||||
2 | (35 ILCS 17/10-50)
| ||||||
3 | Sec. 10-50. Live theater tax credit award program | ||||||
4 | evaluation and reports. | ||||||
5 | (a) The Department's live theater tax credit award | ||||||
6 | evaluation must include: | ||||||
7 | (i) an assessment of the effectiveness of the program | ||||||
8 | in creating and retaining new jobs in Illinois; | ||||||
9 | (ii) an assessment of the revenue impact of the | ||||||
10 | program; | ||||||
11 | (iii) in the discretion of the Department, a review of | ||||||
12 | the practices and experiences of other states or nations | ||||||
13 | with similar programs; and | ||||||
14 | (iv) an assessment of the overall success of the | ||||||
15 | program. The Department may make a recommendation to | ||||||
16 | extend, modify, or not extend the program based on the | ||||||
17 | evaluation. | ||||||
18 | (b) At the end of each fiscal quarter, the Department shall | ||||||
19 | submit to the General Assembly a report that includes, without | ||||||
20 | limitation: | ||||||
21 | (i) an assessment of the economic impact of the | ||||||
22 | program, including the number of jobs created and retained, | ||||||
23 | and whether the job positions are entry level, management, | ||||||
24 | vendor, or production related; | ||||||
25 | (ii) the amount of accredited theater production |
| |||||||
| |||||||
1 | spending brought to Illinois, including the amount of | ||||||
2 | spending and type of Illinois vendors hired in connection | ||||||
3 | with an accredited theater production; and | ||||||
4 | (iii) a determination of whether those receiving | ||||||
5 | qualifying Illinois labor expenditure salaries or wages | ||||||
6 | reflect the geographical, racial and ethnic, gender, and | ||||||
7 | income level diversity of the State of Illinois. | ||||||
8 | (c) At the end of each fiscal year, the Department shall | ||||||
9 | submit to the General Assembly a report that includes, without | ||||||
10 | limitation: | ||||||
11 | (i) the identification of each vendor that provided | ||||||
12 | goods or services that were included in an accredited | ||||||
13 | theater production's Illinois production spending and a | ||||||
14 | statement of whether the vendor is a minority-owned | ||||||
15 | business or a female-owned business, as defined under | ||||||
16 | Section 2 of the Business Enterprise for Minorities, | ||||||
17 | Females, and Persons with Disabilities Act ; | ||||||
18 | (ii) a statement of (A) the aggregate amount paid to | ||||||
19 | all each identified vendors vendor by the accredited | ||||||
20 | theater production and (B) the aggregate amount paid to all | ||||||
21 | identified vendors that are minority-owned businesses or | ||||||
22 | female-owned businesses, as defined under Section 2 of the | ||||||
23 | Business Enterprise for Minorities, Females, and Persons | ||||||
24 | with Disabilities Act and whether the vendor is a minority | ||||||
25 | or female owned business as defined in Section 2 of the | ||||||
26 | Business Enterprise for Minorities, Females, and Persons |
| |||||||
| |||||||
1 | with Disabilities Act ; and | ||||||
2 | (iii) a description of the steps taken by the | ||||||
3 | Department to encourage accredited theater productions to | ||||||
4 | use vendors who are minority or female owned businesses.
| ||||||
5 | (Source: P.A. 97-636, eff. 6-1-12 .)
| ||||||
6 | ARTICLE 20. USE AND OCCUPATION TAXES | ||||||
7 | Section 20-5. The Use Tax Act is amended by changing | ||||||
8 | Sections 2 and 3-5 as follows:
| ||||||
9 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| ||||||
10 | Sec. 2. Definitions. | ||||||
11 | "Use" means the exercise by any person of any right or | ||||||
12 | power over
tangible personal property incident to the ownership | ||||||
13 | of that property,
except that it does not include the sale of | ||||||
14 | such property in any form as
tangible personal property in the | ||||||
15 | regular course of business to the extent
that such property is | ||||||
16 | not first subjected to a use for which it was
purchased, and | ||||||
17 | does not include the use of such property by its owner for
| ||||||
18 | demonstration purposes: Provided that the property purchased | ||||||
19 | is deemed to
be purchased for the purpose of resale, despite | ||||||
20 | first being used, to the
extent to which it is resold as an | ||||||
21 | ingredient of an intentionally produced
product or by-product | ||||||
22 | of manufacturing. "Use" does not mean the demonstration
use or | ||||||
23 | interim use of tangible personal property by a retailer before |
| |||||||
| |||||||
1 | he sells
that tangible personal property. For watercraft or | ||||||
2 | aircraft, if the period of
demonstration use or interim use by | ||||||
3 | the retailer exceeds 18 months,
the retailer
shall pay on the | ||||||
4 | retailers' original cost price the tax imposed by this Act,
and | ||||||
5 | no credit for that tax is permitted if the watercraft or | ||||||
6 | aircraft is
subsequently sold by the retailer. "Use" does not | ||||||
7 | mean the physical
incorporation of tangible personal property, | ||||||
8 | to the extent not first subjected
to a use for which it was | ||||||
9 | purchased, as an ingredient or constituent, into
other tangible | ||||||
10 | personal property (a) which is sold in the regular course of
| ||||||
11 | business or (b) which the person incorporating such ingredient | ||||||
12 | or constituent
therein has undertaken at the time of such | ||||||
13 | purchase to cause to be transported
in interstate commerce to | ||||||
14 | destinations outside the State of Illinois: Provided
that the | ||||||
15 | property purchased is deemed to be purchased for the purpose of
| ||||||
16 | resale, despite first being used, to the extent to which it is | ||||||
17 | resold as an
ingredient of an intentionally produced product or | ||||||
18 | by-product of manufacturing.
| ||||||
19 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
20 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
21 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
22 | with an inboard motor.
| ||||||
23 | "Purchase at retail" means the acquisition of the ownership | ||||||
24 | of or title
to tangible personal property through a sale at | ||||||
25 | retail.
| ||||||
26 | "Purchaser" means anyone who, through a sale at retail, |
| |||||||
| |||||||
1 | acquires the
ownership of tangible personal property for a | ||||||
2 | valuable consideration.
| ||||||
3 | "Sale at retail" means any transfer of the ownership of or | ||||||
4 | title to
tangible personal property to a purchaser, for the | ||||||
5 | purpose of use, and not
for the purpose of resale in any form | ||||||
6 | as tangible personal property to the
extent not first subjected | ||||||
7 | to a use for which it was purchased, for a
valuable | ||||||
8 | consideration: Provided that the property purchased is deemed | ||||||
9 | to
be purchased for the purpose of resale, despite first being | ||||||
10 | used, to the
extent to which it is resold as an ingredient of | ||||||
11 | an intentionally produced
product or by-product of | ||||||
12 | manufacturing. For this purpose, slag produced as
an incident | ||||||
13 | to manufacturing pig iron or steel and sold is considered to be
| ||||||
14 | an intentionally produced by-product of manufacturing. "Sale | ||||||
15 | at retail"
includes any such transfer made for resale unless | ||||||
16 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
17 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
18 | Act. Transactions whereby the possession
of the property is | ||||||
19 | transferred but the seller retains the title as security
for | ||||||
20 | payment of the selling price are sales.
| ||||||
21 | "Sale at retail" shall also be construed to include any | ||||||
22 | Illinois
florist's sales transaction in which the purchase | ||||||
23 | order is received in
Illinois by a florist and the sale is for | ||||||
24 | use or consumption, but the
Illinois florist has a florist in | ||||||
25 | another state deliver the property to the
purchaser or the | ||||||
26 | purchaser's donee in such other state.
|
| |||||||
| |||||||
1 | Nonreusable tangible personal property that is used by | ||||||
2 | persons engaged in
the business of operating a restaurant, | ||||||
3 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
4 | transferred to customers in the ordinary course of business
as | ||||||
5 | part of the sale of food or beverages and is used to deliver, | ||||||
6 | package, or
consume food or beverages, regardless of where | ||||||
7 | consumption of the food or
beverages occurs. Examples of those | ||||||
8 | items include, but are not limited to
nonreusable, paper and | ||||||
9 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
10 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
11 | and
wrapping or packaging
materials that are transferred to | ||||||
12 | customers as part of the sale of food or
beverages in the | ||||||
13 | ordinary course of business.
| ||||||
14 | The purchase, employment and transfer of such tangible | ||||||
15 | personal property
as newsprint and ink for the primary purpose | ||||||
16 | of conveying news (with or
without other information) is not a | ||||||
17 | purchase, use or sale of tangible
personal property.
| ||||||
18 | "Selling price" means the consideration for a sale valued | ||||||
19 | in money
whether received in money or otherwise, including | ||||||
20 | cash, credits, property
other than as hereinafter provided, and | ||||||
21 | services, but not including the
value of or credit given for | ||||||
22 | traded-in tangible personal property where the
item that is | ||||||
23 | traded-in is of like kind and character as that which is being
| ||||||
24 | sold, and shall be determined without any deduction on account | ||||||
25 | of the cost
of the property sold, the cost of materials used, | ||||||
26 | labor or service cost or
any other expense whatsoever, but does |
| |||||||
| |||||||
1 | not include interest or finance
charges which appear as | ||||||
2 | separate items on the bill of sale or sales
contract nor | ||||||
3 | charges that are added to prices by sellers on account of the
| ||||||
4 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
5 | Act", or on
account of the seller's duty to collect, from the | ||||||
6 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
7 | otherwise provided with respect to any cigarette tax imposed by | ||||||
8 | a home rule unit, on account of the seller's tax liability | ||||||
9 | under any local occupation tax administered by the Department, | ||||||
10 | or, except as otherwise provided with respect to any cigarette | ||||||
11 | tax imposed by a home rule unit on account of the seller's duty | ||||||
12 | to collect, from the purchasers, the tax that is imposed under | ||||||
13 | any local use tax administered by the Department. Effective | ||||||
14 | December 1, 1985, "selling price"
shall include charges that | ||||||
15 | are added to prices by sellers on account of the
seller's tax | ||||||
16 | liability under the Cigarette Tax Act, on account of the | ||||||
17 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
18 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
19 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
20 | by a home rule unit. Beginning January 1, 2018, "selling price" | ||||||
21 | shall not include any shipping or delivery charges, which means | ||||||
22 | any freight, express, mail, truck, or other carrier conveyance | ||||||
23 | or delivery process.
| ||||||
24 | Notwithstanding any law to the contrary, for any motor | ||||||
25 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
26 | is sold on or after January 1, 2015 for the purpose of leasing |
| |||||||
| |||||||
1 | the vehicle for a defined period that is longer than one year | ||||||
2 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
3 | a self-contained motor vehicle designed or permanently | ||||||
4 | converted to provide living quarters for recreational, | ||||||
5 | camping, or travel use, with direct walk through access to the | ||||||
6 | living quarters from the driver's seat; (B) is of the van | ||||||
7 | configuration designed for the transportation of not less than | ||||||
8 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
9 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
10 | of the first division, "selling price" or "amount of sale" | ||||||
11 | means the consideration received by the lessor pursuant to the | ||||||
12 | lease contract, including amounts due at lease signing and all | ||||||
13 | monthly or other regular payments charged over the term of the | ||||||
14 | lease. Also included in the selling price is any amount | ||||||
15 | received by the lessor from the lessee for the leased vehicle | ||||||
16 | that is not calculated at the time the lease is executed, | ||||||
17 | including, but not limited to, excess mileage charges and | ||||||
18 | charges for excess wear and tear. For sales that occur in | ||||||
19 | Illinois, with respect to any amount received by the lessor | ||||||
20 | from the lessee for the leased vehicle that is not calculated | ||||||
21 | at the time the lease is executed, the lessor who purchased the | ||||||
22 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
23 | on those amounts, and the retailer who makes the retail sale of | ||||||
24 | the motor vehicle to the lessor is not required to collect the | ||||||
25 | tax imposed by this Act or to pay the tax imposed by the | ||||||
26 | Retailers' Occupation Tax Act on those amounts. However, the |
| |||||||
| |||||||
1 | lessor who purchased the motor vehicle assumes the liability | ||||||
2 | for reporting and paying the tax on those amounts directly to | ||||||
3 | the Department in the same form (Illinois Retailers' Occupation | ||||||
4 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
5 | which the retailer would have reported and paid such tax if the | ||||||
6 | retailer had accounted for the tax to the Department. For | ||||||
7 | amounts received by the lessor from the lessee that are not | ||||||
8 | calculated at the time the lease is executed, the lessor must | ||||||
9 | file the return and pay the tax to the Department by the due | ||||||
10 | date otherwise required by this Act for returns other than | ||||||
11 | transaction returns. If the retailer is entitled under this Act | ||||||
12 | to a discount for collecting and remitting the tax imposed | ||||||
13 | under this Act to the Department with respect to the sale of | ||||||
14 | the motor vehicle to the lessor, then the right to the discount | ||||||
15 | provided in this Act shall be transferred to the lessor with | ||||||
16 | respect to the tax paid by the lessor for any amount received | ||||||
17 | by the lessor from the lessee for the leased vehicle that is | ||||||
18 | not calculated at the time the lease is executed; provided that | ||||||
19 | the discount is only allowed if the return is timely filed and | ||||||
20 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
21 | that is sold on or after January 1, 2015 for the purpose of | ||||||
22 | leasing for a defined period of longer than one year shall not | ||||||
23 | be reduced by the value of or credit given for traded-in | ||||||
24 | tangible personal property owned by the lessor, nor shall it be | ||||||
25 | reduced by the value of or credit given for traded-in tangible | ||||||
26 | personal property owned by the lessee, regardless of whether |
| |||||||
| |||||||
1 | the trade-in value thereof is assigned by the lessee to the | ||||||
2 | lessor. In the case of a motor vehicle that is sold for the | ||||||
3 | purpose of leasing for a defined period of longer than one | ||||||
4 | year, the sale occurs at the time of the delivery of the | ||||||
5 | vehicle, regardless of the due date of any lease payments. A | ||||||
6 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
7 | sale of a motor vehicle coming off lease may not take a credit | ||||||
8 | against that liability for the Use Tax the lessor paid upon the | ||||||
9 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
10 | with respect to any amount received by the lessor from the | ||||||
11 | lessee for the leased vehicle that was not calculated at the | ||||||
12 | time the lease was executed) if the selling price of the motor | ||||||
13 | vehicle at the time of purchase was calculated using the | ||||||
14 | definition of "selling price" as defined in this paragraph. | ||||||
15 | Notwithstanding any other provision of this Act to the | ||||||
16 | contrary, lessors shall file all returns and make all payments | ||||||
17 | required under this paragraph to the Department by electronic | ||||||
18 | means in the manner and form as required by the Department. | ||||||
19 | This paragraph does not apply to leases of motor vehicles for | ||||||
20 | which, at the time the lease is entered into, the term of the | ||||||
21 | lease is not a defined period, including leases with a defined | ||||||
22 | initial period with the option to continue the lease on a | ||||||
23 | month-to-month or other basis beyond the initial defined | ||||||
24 | period. | ||||||
25 | The phrase "like kind and character" shall be liberally | ||||||
26 | construed
(including but not limited to any form of motor |
| |||||||
| |||||||
1 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
2 | agricultural implement for any other
kind of farm or | ||||||
3 | agricultural implement), while not including a kind of item
| ||||||
4 | which, if sold at retail by that retailer, would be exempt from | ||||||
5 | retailers'
occupation tax and use tax as an isolated or | ||||||
6 | occasional sale.
| ||||||
7 | "Department" means the Department of Revenue.
| ||||||
8 | "Person" means any natural individual, firm, partnership, | ||||||
9 | association,
joint stock company, joint adventure, public or | ||||||
10 | private corporation, limited
liability company, or a
receiver, | ||||||
11 | executor, trustee, guardian or other representative appointed
| ||||||
12 | by order of any court.
| ||||||
13 | "Retailer" means and includes every person engaged in the | ||||||
14 | business of
making sales at retail as defined in this Section.
| ||||||
15 | A person who holds himself or herself out as being engaged | ||||||
16 | (or who habitually
engages) in selling tangible personal | ||||||
17 | property at retail is a retailer
hereunder with respect to such | ||||||
18 | sales (and not primarily in a service
occupation) | ||||||
19 | notwithstanding the fact that such person designs and produces
| ||||||
20 | such tangible personal property on special order for the | ||||||
21 | purchaser and in
such a way as to render the property of value | ||||||
22 | only to such purchaser, if
such tangible personal property so | ||||||
23 | produced on special order serves
substantially the same | ||||||
24 | function as stock or standard items of tangible
personal | ||||||
25 | property that are sold at retail.
| ||||||
26 | A person whose activities are organized and conducted |
| |||||||
| |||||||
1 | primarily as a
not-for-profit service enterprise, and who | ||||||
2 | engages in selling tangible
personal property at retail | ||||||
3 | (whether to the public or merely to members and
their guests) | ||||||
4 | is a retailer with respect to such transactions, excepting
only | ||||||
5 | a person organized and operated exclusively for charitable, | ||||||
6 | religious
or educational purposes either (1), to the extent of | ||||||
7 | sales by such person
to its members, students, patients or | ||||||
8 | inmates of tangible personal property
to be used primarily for | ||||||
9 | the purposes of such person, or (2), to the extent
of sales by | ||||||
10 | such person of tangible personal property which is not sold or
| ||||||
11 | offered for sale by persons organized for profit. The selling | ||||||
12 | of school
books and school supplies by schools at retail to | ||||||
13 | students is not
"primarily for the purposes of" the school | ||||||
14 | which does such selling. This
paragraph does not apply to nor | ||||||
15 | subject to taxation occasional dinners,
social or similar | ||||||
16 | activities of a person organized and operated exclusively
for | ||||||
17 | charitable, religious or educational purposes, whether or not | ||||||
18 | such
activities are open to the public.
| ||||||
19 | A person who is the recipient of a grant or contract under | ||||||
20 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
21 | serves meals to
participants in the federal Nutrition Program | ||||||
22 | for the Elderly in return for
contributions established in | ||||||
23 | amount by the individual participant pursuant
to a schedule of | ||||||
24 | suggested fees as provided for in the federal Act is not a
| ||||||
25 | retailer under this Act with respect to such transactions.
| ||||||
26 | Persons who engage in the business of transferring tangible |
| |||||||
| |||||||
1 | personal
property upon the redemption of trading stamps are | ||||||
2 | retailers hereunder when
engaged in such business.
| ||||||
3 | The isolated or occasional sale of tangible personal | ||||||
4 | property at retail
by a person who does not hold himself out as | ||||||
5 | being engaged (or who does not
habitually engage) in selling | ||||||
6 | such tangible personal property at retail or
a sale through a | ||||||
7 | bulk vending machine does not make such person a retailer
| ||||||
8 | hereunder. However, any person who is engaged in a business | ||||||
9 | which is not
subject to the tax imposed by the "Retailers' | ||||||
10 | Occupation Tax Act" because
of involving the sale of or a | ||||||
11 | contract to sell real estate or a
construction contract to | ||||||
12 | improve real estate, but who, in the course of
conducting such | ||||||
13 | business, transfers tangible personal property to users or
| ||||||
14 | consumers in the finished form in which it was purchased, and | ||||||
15 | which does
not become real estate, under any provision of a | ||||||
16 | construction contract or
real estate sale or real estate sales | ||||||
17 | agreement entered into with some
other person arising out of or | ||||||
18 | because of such nontaxable business, is a
retailer to the | ||||||
19 | extent of the value of the tangible personal property so
| ||||||
20 | transferred. If, in such transaction, a separate charge is made | ||||||
21 | for the
tangible personal property so transferred, the value of | ||||||
22 | such property, for
the purposes of this Act, is the amount so | ||||||
23 | separately charged, but not less
than the cost of such property | ||||||
24 | to the transferor; if no separate charge is
made, the value of | ||||||
25 | such property, for the purposes of this Act, is the cost
to the | ||||||
26 | transferor of such tangible personal property.
|
| |||||||
| |||||||
1 | "Retailer maintaining a place of business in this State", | ||||||
2 | or any like
term, means and includes any of the following | ||||||
3 | retailers:
| ||||||
4 | 1. A retailer having or maintaining within this State, | ||||||
5 | directly or by
a subsidiary, an office, distribution house, | ||||||
6 | sales house, warehouse or other
place of business, or any | ||||||
7 | agent or other representative operating within this
State | ||||||
8 | under the authority of the retailer or its subsidiary, | ||||||
9 | irrespective of
whether such place of business or agent or | ||||||
10 | other representative is located here
permanently or | ||||||
11 | temporarily, or whether such retailer or subsidiary is | ||||||
12 | licensed
to do business in this State. However, the | ||||||
13 | ownership of property that is
located at the premises of a | ||||||
14 | printer with which the retailer has contracted for
printing | ||||||
15 | and that consists of the final printed product, property | ||||||
16 | that becomes
a part of the final printed product, or copy | ||||||
17 | from which the printed product is
produced shall not result | ||||||
18 | in the retailer being deemed to have or maintain an
office, | ||||||
19 | distribution house, sales house, warehouse, or other place | ||||||
20 | of business
within this State. | ||||||
21 | 1.1. A retailer having a contract with a person located | ||||||
22 | in this State under which the person, for a commission or | ||||||
23 | other consideration based upon the sale of tangible | ||||||
24 | personal property by the retailer, directly or indirectly | ||||||
25 | refers potential customers to the retailer by providing to | ||||||
26 | the potential customers a promotional code or other |
| |||||||
| |||||||
1 | mechanism that allows the retailer to track purchases | ||||||
2 | referred by such persons. Examples of mechanisms that allow | ||||||
3 | the retailer to track purchases referred by such persons | ||||||
4 | include but are not limited to the use of a link on the | ||||||
5 | person's Internet website, promotional codes distributed | ||||||
6 | through the person's hand-delivered or mailed material, | ||||||
7 | and promotional codes distributed by the person through | ||||||
8 | radio or other broadcast media. The provisions of this | ||||||
9 | paragraph 1.1 shall apply only if the cumulative gross | ||||||
10 | receipts from sales of tangible personal property by the | ||||||
11 | retailer to customers who are referred to the retailer by | ||||||
12 | all persons in this State under such contracts exceed | ||||||
13 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
14 | the last day of March, June, September, and December. A | ||||||
15 | retailer meeting the requirements of this paragraph 1.1 | ||||||
16 | shall be presumed to be maintaining a place of business in | ||||||
17 | this State but may rebut this presumption by submitting | ||||||
18 | proof that the referrals or other activities pursued within | ||||||
19 | this State by such persons were not sufficient to meet the | ||||||
20 | nexus standards of the United States Constitution during | ||||||
21 | the preceding 4 quarterly periods. | ||||||
22 | 1.2. Beginning July 1, 2011, a retailer having a | ||||||
23 | contract with a person located in this State under which: | ||||||
24 | A. the retailer sells the same or substantially | ||||||
25 | similar line of products as the person located in this | ||||||
26 | State and does so using an identical or substantially |
| |||||||
| |||||||
1 | similar name, trade name, or trademark as the person | ||||||
2 | located in this State; and | ||||||
3 | B. the retailer provides a commission or other | ||||||
4 | consideration to the person located in this State based | ||||||
5 | upon the sale of tangible personal property by the | ||||||
6 | retailer. | ||||||
7 | The provisions of this paragraph 1.2 shall apply only if | ||||||
8 | the cumulative gross receipts from sales of tangible | ||||||
9 | personal property by the retailer to customers in this | ||||||
10 | State under all such contracts exceed $10,000 during the | ||||||
11 | preceding 4 quarterly periods ending on the last day of | ||||||
12 | March, June, September, and December.
| ||||||
13 | 2. A retailer soliciting orders for tangible personal | ||||||
14 | property by
means of a telecommunication or television | ||||||
15 | shopping system (which utilizes toll
free numbers) which is | ||||||
16 | intended by the retailer to be broadcast by cable
| ||||||
17 | television or other means of broadcasting, to consumers | ||||||
18 | located in this State.
| ||||||
19 | 3. A retailer, pursuant to a contract with a | ||||||
20 | broadcaster or publisher
located in this State, soliciting | ||||||
21 | orders for tangible personal property by
means of | ||||||
22 | advertising which is disseminated primarily to consumers | ||||||
23 | located in
this State and only secondarily to bordering | ||||||
24 | jurisdictions.
| ||||||
25 | 4. A retailer soliciting orders for tangible personal | ||||||
26 | property by mail
if the solicitations are substantial and |
| |||||||
| |||||||
1 | recurring and if the retailer benefits
from any banking, | ||||||
2 | financing, debt collection, telecommunication, or | ||||||
3 | marketing
activities occurring in this State or benefits | ||||||
4 | from the location in this State
of authorized installation, | ||||||
5 | servicing, or repair facilities.
| ||||||
6 | 5. A retailer that is owned or controlled by the same | ||||||
7 | interests that own
or control any retailer engaging in | ||||||
8 | business in the same or similar line of
business in this | ||||||
9 | State.
| ||||||
10 | 6. A retailer having a franchisee or licensee operating | ||||||
11 | under its trade
name if the franchisee or licensee is | ||||||
12 | required to collect the tax under this
Section.
| ||||||
13 | 7. A retailer, pursuant to a contract with a cable | ||||||
14 | television operator
located in this State, soliciting | ||||||
15 | orders for tangible personal property by
means of | ||||||
16 | advertising which is transmitted or distributed over a | ||||||
17 | cable
television system in this State.
| ||||||
18 | 8. A retailer engaging in activities in Illinois, which | ||||||
19 | activities in
the state in which the retail business | ||||||
20 | engaging in such activities is located
would constitute | ||||||
21 | maintaining a place of business in that state.
| ||||||
22 | "Bulk vending machine" means a vending machine,
containing | ||||||
23 | unsorted confections, nuts, toys, or other items designed
| ||||||
24 | primarily to be used or played with by children
which, when a | ||||||
25 | coin or coins of a denomination not larger than $0.50 are | ||||||
26 | inserted, are dispensed in equal portions, at random and
|
| |||||||
| |||||||
1 | without selection by the customer.
| ||||||
2 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14; | ||||||
3 | 98-1089, eff. 1-1-15; 99-78, eff. 7-20-15.)
| ||||||
4 | (35 ILCS 105/3-5)
| ||||||
5 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
6 | personal property
is exempt from the tax imposed by this Act:
| ||||||
7 | (1) Personal property purchased from a corporation, | ||||||
8 | society, association,
foundation, institution, or | ||||||
9 | organization, other than a limited liability
company, that is | ||||||
10 | organized and operated as a not-for-profit service enterprise
| ||||||
11 | for the benefit of persons 65 years of age or older if the | ||||||
12 | personal property
was not purchased by the enterprise for the | ||||||
13 | purpose of resale by the
enterprise.
| ||||||
14 | (2) Personal property purchased by a not-for-profit | ||||||
15 | Illinois county
fair association for use in conducting, | ||||||
16 | operating, or promoting the
county fair.
| ||||||
17 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
18 | cultural organization that establishes, by proof required by | ||||||
19 | the
Department by
rule, that it has received an exemption under | ||||||
20 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
21 | organized and operated primarily for the
presentation
or | ||||||
22 | support of arts or cultural programming, activities, or | ||||||
23 | services. These
organizations include, but are not limited to, | ||||||
24 | music and dramatic arts
organizations such as symphony | ||||||
25 | orchestras and theatrical groups, arts and
cultural service |
| |||||||
| |||||||
1 | organizations, local arts councils, visual arts organizations,
| ||||||
2 | and media arts organizations.
On and after the effective date | ||||||
3 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
4 | an entity otherwise eligible for this exemption shall not
make | ||||||
5 | tax-free purchases unless it has an active identification | ||||||
6 | number issued by
the Department.
| ||||||
7 | (4) Personal property purchased by a governmental body, by | ||||||
8 | a
corporation, society, association, foundation, or | ||||||
9 | institution organized and
operated exclusively for charitable, | ||||||
10 | religious, or educational purposes, or
by a not-for-profit | ||||||
11 | corporation, society, association, foundation,
institution, or | ||||||
12 | organization that has no compensated officers or employees
and | ||||||
13 | that is organized and operated primarily for the recreation of | ||||||
14 | persons
55 years of age or older. A limited liability company | ||||||
15 | may qualify for the
exemption under this paragraph only if the | ||||||
16 | limited liability company is
organized and operated | ||||||
17 | exclusively for educational purposes. On and after July
1, | ||||||
18 | 1987, however, no entity otherwise eligible for this exemption | ||||||
19 | shall make
tax-free purchases unless it has an active exemption | ||||||
20 | identification number
issued by the Department.
| ||||||
21 | (5) Until July 1, 2003, a passenger car that is a | ||||||
22 | replacement vehicle to
the extent that the
purchase price of | ||||||
23 | the car is subject to the Replacement Vehicle Tax.
| ||||||
24 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
25 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
26 | equipment, including
repair and replacement
parts, both new and |
| |||||||
| |||||||
1 | used, and including that manufactured on special order,
| ||||||
2 | certified by the purchaser to be used primarily for graphic | ||||||
3 | arts production,
and including machinery and equipment | ||||||
4 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
5 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
6 | acting as catalysts effect a direct and immediate change
upon a | ||||||
7 | graphic arts product.
| ||||||
8 | (7) Farm chemicals.
| ||||||
9 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
10 | coinage issued by
the State of Illinois, the government of the | ||||||
11 | United States of America, or the
government of any foreign | ||||||
12 | country, and bullion.
| ||||||
13 | (9) Personal property purchased from a teacher-sponsored | ||||||
14 | student
organization affiliated with an elementary or | ||||||
15 | secondary school located in
Illinois.
| ||||||
16 | (10) A motor vehicle that is used for automobile renting, | ||||||
17 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
18 | Act.
| ||||||
19 | (11) Farm machinery and equipment, both new and used,
| ||||||
20 | including that manufactured on special order, certified by the | ||||||
21 | purchaser
to be used primarily for production agriculture or | ||||||
22 | State or federal
agricultural programs, including individual | ||||||
23 | replacement parts for
the machinery and equipment, including | ||||||
24 | machinery and equipment
purchased
for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but excluding other motor
vehicles required to be
registered | ||||||
4 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
8 | boxes shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to, soil testing
sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and
activities such as, but not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (11) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-90.
| ||||||
2 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
3 | to or used by an air common
carrier, certified by the carrier | ||||||
4 | to be used for consumption, shipment, or
storage in the conduct | ||||||
5 | of its business as an air common carrier, for a
flight destined | ||||||
6 | for or returning from a location or locations
outside the | ||||||
7 | United States without regard to previous or subsequent domestic
| ||||||
8 | stopovers.
| ||||||
9 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
10 | or used by an air carrier, certified by the carrier to be used | ||||||
11 | for consumption, shipment, or storage in the conduct of its | ||||||
12 | business as an air common carrier, for a flight that (i) is | ||||||
13 | engaged in foreign trade or is engaged in trade between the | ||||||
14 | United States and any of its possessions and (ii) transports at | ||||||
15 | least one individual or package for hire from the city of | ||||||
16 | origination to the city of final destination on the same | ||||||
17 | aircraft, without regard to a change in the flight number of | ||||||
18 | that aircraft. | ||||||
19 | (13) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages purchased at retail from a retailer, to the | ||||||
22 | extent that the proceeds
of the service charge are in fact | ||||||
23 | turned over as tips or as a substitute
for tips to the | ||||||
24 | employees who participate directly in preparing, serving,
| ||||||
25 | hosting or cleaning up the food or beverage function with | ||||||
26 | respect to which
the service charge is imposed.
|
| |||||||
| |||||||
1 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
3 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
6 | individual replacement part for oil
field exploration, | ||||||
7 | drilling, and production equipment, and (vi) machinery and
| ||||||
8 | equipment purchased
for lease; but excluding motor vehicles | ||||||
9 | required to be registered under the
Illinois Vehicle Code.
| ||||||
10 | (15) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that
| ||||||
12 | manufactured on special order, certified by the purchaser to be | ||||||
13 | used
primarily for photoprocessing, and including
| ||||||
14 | photoprocessing machinery and equipment purchased for lease.
| ||||||
15 | (16) Until December 31, 2022, coal Coal and aggregate | ||||||
16 | exploration, mining, off-highway hauling,
processing, | ||||||
17 | maintenance, and reclamation equipment,
including replacement | ||||||
18 | parts and equipment, and
including equipment purchased for | ||||||
19 | lease, but excluding motor
vehicles required to be registered | ||||||
20 | under the Illinois Vehicle Code. The changes made to this | ||||||
21 | Section by Public Act 97-767 apply on and after July 1, 2003, | ||||||
22 | but no claim for credit or refund is allowed on or after August | ||||||
23 | 16, 2013 (the effective date of Public Act 98-456)
for such | ||||||
24 | taxes paid during the period beginning July 1, 2003 and ending | ||||||
25 | on August 16, 2013 (the effective date of Public Act 98-456).
| ||||||
26 | (17) Until July 1, 2003, distillation machinery and |
| |||||||
| |||||||
1 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
2 | retailer, certified by the user to be used
only for the | ||||||
3 | production of ethyl alcohol that will be used for consumption
| ||||||
4 | as motor fuel or as a component of motor fuel for the personal | ||||||
5 | use of the
user, and not subject to sale or resale.
| ||||||
6 | (18) Manufacturing and assembling machinery and equipment | ||||||
7 | used
primarily in the process of manufacturing or assembling | ||||||
8 | tangible
personal property for wholesale or retail sale or | ||||||
9 | lease, whether that sale
or lease is made directly by the | ||||||
10 | manufacturer or by some other person,
whether the materials | ||||||
11 | used in the process are
owned by the manufacturer or some other | ||||||
12 | person, or whether that sale or
lease is made apart from or as | ||||||
13 | an incident to the seller's engaging in
the service occupation | ||||||
14 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
15 | other similar items of no commercial value on
special order for | ||||||
16 | a particular purchaser. The exemption provided by this | ||||||
17 | paragraph (18) does not include machinery and equipment used in | ||||||
18 | (i) the generation of electricity for wholesale or retail sale; | ||||||
19 | (ii) the generation or treatment of natural or artificial gas | ||||||
20 | for wholesale or retail sale that is delivered to customers | ||||||
21 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
22 | water for wholesale or retail sale that is delivered to | ||||||
23 | customers through pipes, pipelines, or mains. The provisions of | ||||||
24 | Public Act 98-583 are declaratory of existing law as to the | ||||||
25 | meaning and scope of this exemption.
| ||||||
26 | (19) Personal property delivered to a purchaser or |
| |||||||
| |||||||
1 | purchaser's donee
inside Illinois when the purchase order for | ||||||
2 | that personal property was
received by a florist located | ||||||
3 | outside Illinois who has a florist located
inside Illinois | ||||||
4 | deliver the personal property.
| ||||||
5 | (20) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (21) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (21) is exempt from the provisions | ||||||
13 | of Section 3-90, and the exemption provided for under this item | ||||||
14 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
15 | claim for credit or refund is allowed on or after January 1, | ||||||
16 | 2008
for such taxes paid during the period beginning May 30, | ||||||
17 | 2000 and ending on January 1, 2008.
| ||||||
18 | (22) Computers and communications equipment utilized for | ||||||
19 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
20 | analysis, or treatment of hospital patients purchased by a | ||||||
21 | lessor who leases
the
equipment, under a lease of one year or | ||||||
22 | longer executed or in effect at the
time the lessor would | ||||||
23 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
24 | hospital
that has been issued an active tax exemption | ||||||
25 | identification number by
the
Department under Section 1g of the | ||||||
26 | Retailers' Occupation Tax Act. If the
equipment is leased in a |
| |||||||
| |||||||
1 | manner that does not qualify for
this exemption or is used in | ||||||
2 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
3 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
4 | case may
be, based on the fair market value of the property at | ||||||
5 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
6 | or attempt to collect an
amount (however
designated) that | ||||||
7 | purports to reimburse that lessor for the tax imposed by this
| ||||||
8 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
9 | has not been
paid by the lessor. If a lessor improperly | ||||||
10 | collects any such amount from the
lessee, the lessee shall have | ||||||
11 | a legal right to claim a refund of that amount
from the lessor. | ||||||
12 | If, however, that amount is not refunded to the lessee for
any | ||||||
13 | reason, the lessor is liable to pay that amount to the | ||||||
14 | Department.
| ||||||
15 | (23) Personal property purchased by a lessor who leases the
| ||||||
16 | property, under
a
lease of
one year or longer executed or in | ||||||
17 | effect at the time
the lessor would otherwise be subject to the | ||||||
18 | tax imposed by this Act,
to a governmental body
that has been | ||||||
19 | issued an active sales tax exemption identification number by | ||||||
20 | the
Department under Section 1g of the Retailers' Occupation | ||||||
21 | Tax Act.
If the
property is leased in a manner that does not | ||||||
22 | qualify for
this exemption
or used in any other non-exempt | ||||||
23 | manner, the lessor shall be liable for the
tax imposed under | ||||||
24 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
25 | on the fair market value of the property at the time the
| ||||||
26 | non-qualifying use occurs. No lessor shall collect or attempt |
| |||||||
| |||||||
1 | to collect an
amount (however
designated) that purports to | ||||||
2 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
3 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
4 | paid by the lessor. If a lessor improperly collects any such | ||||||
5 | amount from the
lessee, the lessee shall have a legal right to | ||||||
6 | claim a refund of that amount
from the lessor. If, however, | ||||||
7 | that amount is not refunded to the lessee for
any reason, the | ||||||
8 | lessor is liable to pay that amount to the Department.
| ||||||
9 | (24) Beginning with taxable years ending on or after | ||||||
10 | December
31, 1995
and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004,
personal property that is
donated for | ||||||
12 | disaster relief to be used in a State or federally declared
| ||||||
13 | disaster area in Illinois or bordering Illinois by a | ||||||
14 | manufacturer or retailer
that is registered in this State to a | ||||||
15 | corporation, society, association,
foundation, or institution | ||||||
16 | that has been issued a sales tax exemption
identification | ||||||
17 | number by the Department that assists victims of the disaster
| ||||||
18 | who reside within the declared disaster area.
| ||||||
19 | (25) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995 and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004, personal
property that is used in the | ||||||
22 | performance of infrastructure repairs in this
State, including | ||||||
23 | but not limited to municipal roads and streets, access roads,
| ||||||
24 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
25 | line extensions,
water distribution and purification | ||||||
26 | facilities, storm water drainage and
retention facilities, and |
| |||||||
| |||||||
1 | sewage treatment facilities, resulting from a State
or | ||||||
2 | federally declared disaster in Illinois or bordering Illinois | ||||||
3 | when such
repairs are initiated on facilities located in the | ||||||
4 | declared disaster area
within 6 months after the disaster.
| ||||||
5 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
6 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
7 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
8 | provisions
of
Section 3-90.
| ||||||
9 | (27) A motor vehicle, as that term is defined in Section | ||||||
10 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
11 | corporation, limited liability company,
society, association, | ||||||
12 | foundation, or institution that is determined by the
Department | ||||||
13 | to be organized and operated exclusively for educational | ||||||
14 | purposes.
For purposes of this exemption, "a corporation, | ||||||
15 | limited liability company,
society, association, foundation, | ||||||
16 | or institution organized and operated
exclusively for | ||||||
17 | educational purposes" means all tax-supported public schools,
| ||||||
18 | private schools that offer systematic instruction in useful | ||||||
19 | branches of
learning by methods common to public schools and | ||||||
20 | that compare favorably in
their scope and intensity with the | ||||||
21 | course of study presented in tax-supported
schools, and | ||||||
22 | vocational or technical schools or institutes organized and
| ||||||
23 | operated exclusively to provide a course of study of not less | ||||||
24 | than 6 weeks
duration and designed to prepare individuals to | ||||||
25 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
26 | industrial, business, or commercial
occupation.
|
| |||||||
| |||||||
1 | (28) Beginning January 1, 2000, personal property, | ||||||
2 | including
food,
purchased through fundraising
events for the | ||||||
3 | benefit of
a public or private elementary or
secondary school, | ||||||
4 | a group of those schools, or one or more school
districts if | ||||||
5 | the events are
sponsored by an entity recognized by the school | ||||||
6 | district that consists
primarily of volunteers and includes
| ||||||
7 | parents and teachers of the school children. This paragraph | ||||||
8 | does not apply
to fundraising
events (i) for the benefit of | ||||||
9 | private home instruction or (ii)
for which the fundraising | ||||||
10 | entity purchases the personal property sold at
the events from | ||||||
11 | another individual or entity that sold the property for the
| ||||||
12 | purpose of resale by the fundraising entity and that
profits | ||||||
13 | from the sale to the
fundraising entity. This paragraph is | ||||||
14 | exempt
from the provisions
of Section 3-90.
| ||||||
15 | (29) Beginning January 1, 2000 and through December 31, | ||||||
16 | 2001, new or
used automatic vending
machines that prepare and | ||||||
17 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
18 | items, and replacement parts for these machines.
Beginning | ||||||
19 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
20 | for machines used in
commercial, coin-operated amusement and | ||||||
21 | vending business if a use or occupation
tax is paid on the | ||||||
22 | gross receipts derived from the use of the commercial,
| ||||||
23 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
24 | is exempt from the provisions of Section 3-90.
| ||||||
25 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
26 | food for human consumption that is to be consumed off the |
| |||||||
| |||||||
1 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
2 | drinks, and food that
has been prepared for immediate | ||||||
3 | consumption) and prescription and
nonprescription medicines, | ||||||
4 | drugs, medical appliances, and insulin, urine
testing | ||||||
5 | materials, syringes, and needles used by diabetics, for human | ||||||
6 | use, when
purchased for use by a person receiving medical | ||||||
7 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
8 | resides in a licensed long-term care facility,
as defined in | ||||||
9 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
10 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
11 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
12 | (31) Beginning on
the effective date of this amendatory Act | ||||||
13 | of the 92nd General Assembly,
computers and communications | ||||||
14 | equipment
utilized for any hospital purpose and equipment used | ||||||
15 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
16 | purchased by a lessor who leases
the equipment, under a lease | ||||||
17 | of one year or longer executed or in effect at the
time the | ||||||
18 | lessor would otherwise be subject to the tax imposed by this | ||||||
19 | Act, to a
hospital that has been issued an active tax exemption | ||||||
20 | identification number by
the Department under Section 1g of the | ||||||
21 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
22 | manner that does not qualify for this exemption or is
used in | ||||||
23 | any other nonexempt manner, the lessor shall be liable for the | ||||||
24 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
25 | case may be, based on
the fair market value of the property at | ||||||
26 | the time the nonqualifying use
occurs. No lessor shall collect |
| |||||||
| |||||||
1 | or attempt to collect an amount (however
designated) that | ||||||
2 | purports to reimburse that lessor for the tax imposed by this
| ||||||
3 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
4 | has not been
paid by the lessor. If a lessor improperly | ||||||
5 | collects any such amount from the
lessee, the lessee shall have | ||||||
6 | a legal right to claim a refund of that amount
from the lessor. | ||||||
7 | If, however, that amount is not refunded to the lessee for
any | ||||||
8 | reason, the lessor is liable to pay that amount to the | ||||||
9 | Department.
This paragraph is exempt from the provisions of | ||||||
10 | Section 3-90.
| ||||||
11 | (32) Beginning on
the effective date of this amendatory Act | ||||||
12 | of the 92nd General Assembly,
personal property purchased by a | ||||||
13 | lessor who leases the property,
under a lease of one year or | ||||||
14 | longer executed or in effect at the time the
lessor would | ||||||
15 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
16 | governmental body that has been issued an active sales tax | ||||||
17 | exemption
identification number by the Department under | ||||||
18 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
19 | property is leased in a manner that does not
qualify for this | ||||||
20 | exemption or used in any other nonexempt manner, the lessor
| ||||||
21 | shall be liable for the tax imposed under this Act or the | ||||||
22 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
23 | market value of the property at the time
the nonqualifying use | ||||||
24 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
25 | (however designated) that purports to reimburse that lessor for | ||||||
26 | the
tax imposed by this Act or the Service Use Tax Act, as the |
| |||||||
| |||||||
1 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
2 | lessor improperly collects any such
amount from the lessee, the | ||||||
3 | lessee shall have a legal right to claim a refund
of that | ||||||
4 | amount from the lessor. If, however, that amount is not | ||||||
5 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
6 | pay that amount to the
Department. This paragraph is exempt | ||||||
7 | from the provisions of Section 3-90.
| ||||||
8 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
9 | the use in this State of motor vehicles of
the second division | ||||||
10 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
11 | are subject to the commercial distribution fee imposed under | ||||||
12 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
13 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
14 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
15 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
16 | to the commercial distribution fee imposed under Section | ||||||
17 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
18 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
19 | this exemption applies to repair and
replacement parts added | ||||||
20 | after the initial purchase of such a motor vehicle if
that | ||||||
21 | motor
vehicle is used in a manner that would qualify for the | ||||||
22 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
23 | purposes of this paragraph, the term "used for commercial | ||||||
24 | purposes" means the transportation of persons or property in | ||||||
25 | furtherance of any commercial or industrial enterprise, | ||||||
26 | whether for-hire or not.
|
| |||||||
| |||||||
1 | (34) Beginning January 1, 2008, tangible personal property | ||||||
2 | used in the construction or maintenance of a community water | ||||||
3 | supply, as defined under Section 3.145 of the Environmental | ||||||
4 | Protection Act, that is operated by a not-for-profit | ||||||
5 | corporation that holds a valid water supply permit issued under | ||||||
6 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
7 | exempt from the provisions of Section 3-90. | ||||||
8 | (35) Beginning January 1, 2010, materials, parts, | ||||||
9 | equipment, components, and furnishings incorporated into or | ||||||
10 | upon an aircraft as part of the modification, refurbishment, | ||||||
11 | completion, replacement, repair, or maintenance of the | ||||||
12 | aircraft. This exemption includes consumable supplies used in | ||||||
13 | the modification, refurbishment, completion, replacement, | ||||||
14 | repair, and maintenance of aircraft, but excludes any | ||||||
15 | materials, parts, equipment, components, and consumable | ||||||
16 | supplies used in the modification, replacement, repair, and | ||||||
17 | maintenance of aircraft engines or power plants, whether such | ||||||
18 | engines or power plants are installed or uninstalled upon any | ||||||
19 | such aircraft. "Consumable supplies" include, but are not | ||||||
20 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
21 | lubricants, cleaning solution, latex gloves, and protective | ||||||
22 | films. This exemption applies only to the use of qualifying | ||||||
23 | tangible personal property by persons who modify, refurbish, | ||||||
24 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
25 | hold an Air Agency Certificate and are empowered to operate an | ||||||
26 | approved repair station by the Federal Aviation |
| |||||||
| |||||||
1 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
2 | operations in accordance with Part 145 of the Federal Aviation | ||||||
3 | Regulations. The exemption does not include aircraft operated | ||||||
4 | by a commercial air carrier providing scheduled passenger air | ||||||
5 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
6 | of the Federal Aviation Regulations. The changes made to this | ||||||
7 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
8 | law. | ||||||
9 | (36) Tangible personal property purchased by a | ||||||
10 | public-facilities corporation, as described in Section | ||||||
11 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
12 | constructing or furnishing a municipal convention hall, but | ||||||
13 | only if the legal title to the municipal convention hall is | ||||||
14 | transferred to the municipality without any further | ||||||
15 | consideration by or on behalf of the municipality at the time | ||||||
16 | of the completion of the municipal convention hall or upon the | ||||||
17 | retirement or redemption of any bonds or other debt instruments | ||||||
18 | issued by the public-facilities corporation in connection with | ||||||
19 | the development of the municipal convention hall. This | ||||||
20 | exemption includes existing public-facilities corporations as | ||||||
21 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
22 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
23 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
24 | and menstrual cups. | ||||||
25 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
26 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. |
| |||||||
| |||||||
1 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
2 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
3 | Section 20-10. The Service Use Tax Act is amended by | ||||||
4 | changing Sections 2 and 3-5 as follows:
| ||||||
5 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
6 | Sec. 2. Definitions. | ||||||
7 | "Use" means the exercise by any person of any right or | ||||||
8 | power
over tangible personal property incident to the ownership | ||||||
9 | of that
property, but does not include the sale or use for | ||||||
10 | demonstration by him
of that property in any form as tangible | ||||||
11 | personal property in the
regular course of business.
"Use" does | ||||||
12 | not mean the interim
use of
tangible personal property nor the | ||||||
13 | physical incorporation of tangible
personal property, as an | ||||||
14 | ingredient or constituent, into other tangible
personal | ||||||
15 | property, (a) which is sold in the regular course of business
| ||||||
16 | or (b) which the person incorporating such ingredient or | ||||||
17 | constituent
therein has undertaken at the time of such purchase | ||||||
18 | to cause to be
transported in interstate commerce to | ||||||
19 | destinations outside the State of
Illinois.
| ||||||
20 | "Purchased from a serviceman" means the acquisition of the | ||||||
21 | ownership
of, or title to, tangible personal property through a | ||||||
22 | sale of service.
| ||||||
23 | "Purchaser" means any person who, through a sale of | ||||||
24 | service, acquires
the ownership of, or title to, any tangible |
| |||||||
| |||||||
1 | personal property.
| ||||||
2 | "Cost price" means the consideration paid by the serviceman | ||||||
3 | for a
purchase valued in money, whether paid in money or | ||||||
4 | otherwise, including
cash, credits and services, and shall be | ||||||
5 | determined without any
deduction on account of the supplier's | ||||||
6 | cost of the property sold or on
account of any other expense | ||||||
7 | incurred by the supplier. When a serviceman
contracts out part | ||||||
8 | or all of the services required in his sale of service,
it | ||||||
9 | shall be presumed that the cost price to the serviceman of the | ||||||
10 | property
transferred to him or her by his or her subcontractor | ||||||
11 | is equal to 50% of
the subcontractor's charges to the | ||||||
12 | serviceman in the absence of proof of
the consideration paid by | ||||||
13 | the subcontractor for the purchase of such property.
| ||||||
14 | "Selling price" means the consideration for a sale valued | ||||||
15 | in money
whether received in money or otherwise, including | ||||||
16 | cash, credits and
service, and shall be determined without any | ||||||
17 | deduction on account of the
serviceman's cost of the property | ||||||
18 | sold, the cost of materials used,
labor or service cost or any | ||||||
19 | other expense whatsoever, but does not
include interest or | ||||||
20 | finance charges which appear as separate items on
the bill of | ||||||
21 | sale or sales contract nor charges that are added to prices
by | ||||||
22 | sellers on account of the seller's duty to collect, from the
| ||||||
23 | purchaser, the tax that is imposed by this Act. Beginning | ||||||
24 | January 1, 2018, "selling price" shall not include any shipping | ||||||
25 | or delivery charges, which means any freight, express, mail, | ||||||
26 | truck, or other carrier conveyance or delivery process.
|
| |||||||
| |||||||
1 | "Department" means the Department of Revenue.
| ||||||
2 | "Person" means any natural individual, firm, partnership,
| ||||||
3 | association, joint stock company, joint venture, public or | ||||||
4 | private
corporation, limited liability company, and any | ||||||
5 | receiver, executor, trustee,
guardian or other representative | ||||||
6 | appointed by order of any court.
| ||||||
7 | "Sale of service" means any transaction except:
| ||||||
8 | (1) a retail sale of tangible personal property taxable | ||||||
9 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
10 | Tax Act.
| ||||||
11 | (2) a sale of tangible personal property for the | ||||||
12 | purpose of resale
made in compliance with Section 2c of the | ||||||
13 | Retailers' Occupation Tax Act.
| ||||||
14 | (3) except as hereinafter provided, a sale or transfer | ||||||
15 | of tangible
personal property as an incident to the | ||||||
16 | rendering of service for or by
any governmental body, or | ||||||
17 | for or by any corporation, society,
association, | ||||||
18 | foundation or institution organized and operated
| ||||||
19 | exclusively for charitable, religious or educational | ||||||
20 | purposes or any
not-for-profit corporation, society, | ||||||
21 | association, foundation,
institution or organization which | ||||||
22 | has no compensated officers or
employees and which is | ||||||
23 | organized and operated primarily for the
recreation of | ||||||
24 | persons 55 years of age or older. A limited liability | ||||||
25 | company
may qualify for the exemption under this paragraph | ||||||
26 | only if the limited
liability company is organized and |
| |||||||
| |||||||
1 | operated exclusively for educational
purposes.
| ||||||
2 | (4) a sale or transfer of tangible personal
property as | ||||||
3 | an incident to the
rendering of service for interstate | ||||||
4 | carriers for hire for use as rolling stock
moving in | ||||||
5 | interstate commerce or by lessors under a lease of one year | ||||||
6 | or
longer, executed or in effect at the time of purchase of | ||||||
7 | personal property, to
interstate carriers for hire for use | ||||||
8 | as rolling stock moving in interstate
commerce so long as | ||||||
9 | so used by such interstate carriers for hire, and equipment
| ||||||
10 | operated by a telecommunications provider, licensed as a | ||||||
11 | common carrier by the
Federal Communications Commission, | ||||||
12 | which is permanently installed in or affixed
to aircraft | ||||||
13 | moving in interstate commerce.
| ||||||
14 | (4a) a sale or transfer of tangible personal
property | ||||||
15 | as an incident
to the rendering of service for owners, | ||||||
16 | lessors, or shippers of tangible
personal property which is | ||||||
17 | utilized by interstate carriers for hire for
use as rolling | ||||||
18 | stock moving in interstate commerce so long as so used by
| ||||||
19 | interstate carriers for hire, and equipment operated by a
| ||||||
20 | telecommunications provider, licensed as a common carrier | ||||||
21 | by the Federal
Communications Commission, which is | ||||||
22 | permanently installed in or affixed to
aircraft moving in | ||||||
23 | interstate commerce.
| ||||||
24 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
25 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
26 | division with a gross vehicle weight in excess of 8,000 |
| |||||||
| |||||||
1 | pounds as an
incident to the rendering of service if that | ||||||
2 | motor
vehicle is subject
to the commercial distribution fee | ||||||
3 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
4 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
5 | use in this State of motor vehicles of the second division: | ||||||
6 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
7 | pounds; (ii) that are subject to the commercial | ||||||
8 | distribution fee imposed under Section 3-815.1 of the | ||||||
9 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
10 | for commercial purposes. Through June 30, 2005, this
| ||||||
11 | exemption applies to repair and replacement parts added | ||||||
12 | after the
initial
purchase of such a motor vehicle if that | ||||||
13 | motor vehicle is used in a manner that
would
qualify for | ||||||
14 | the rolling stock exemption otherwise provided for in this | ||||||
15 | Act. For purposes of this paragraph, "used for commercial | ||||||
16 | purposes" means the transportation of persons or property | ||||||
17 | in furtherance of any commercial or industrial enterprise | ||||||
18 | whether for-hire or not.
| ||||||
19 | (5) a sale or transfer of machinery and equipment used | ||||||
20 | primarily in the
process of the manufacturing or | ||||||
21 | assembling, either in an existing, an expanded
or a new | ||||||
22 | manufacturing facility, of tangible personal property for | ||||||
23 | wholesale or
retail sale or lease, whether such sale or | ||||||
24 | lease is made directly by the
manufacturer or by some other | ||||||
25 | person, whether the materials used in the process
are owned | ||||||
26 | by the manufacturer or some other person, or whether such |
| |||||||
| |||||||
1 | sale or
lease is made apart from or as an incident to the | ||||||
2 | seller's engaging in a
service occupation and the | ||||||
3 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
4 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
5 | exemption provided by this paragraph (5) does not include | ||||||
6 | machinery and equipment used in (i) the generation of | ||||||
7 | electricity for wholesale or retail sale; (ii) the | ||||||
8 | generation or treatment of natural or artificial gas for | ||||||
9 | wholesale or retail sale that is delivered to customers | ||||||
10 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
11 | of water for wholesale or retail sale that is delivered to | ||||||
12 | customers through pipes, pipelines, or mains. The | ||||||
13 | provisions of this amendatory Act of the 98th General | ||||||
14 | Assembly are declaratory of existing law as to the meaning | ||||||
15 | and scope of this exemption.
| ||||||
16 | (5a) the repairing, reconditioning or remodeling, for | ||||||
17 | a
common carrier by rail, of tangible personal property | ||||||
18 | which belongs to such
carrier for hire, and as to which | ||||||
19 | such carrier receives the physical possession
of the | ||||||
20 | repaired, reconditioned or remodeled item of tangible | ||||||
21 | personal property
in Illinois, and which such carrier | ||||||
22 | transports, or shares with another common
carrier in the | ||||||
23 | transportation of such property, out of Illinois on a | ||||||
24 | standard
uniform bill of lading showing the person who | ||||||
25 | repaired, reconditioned or
remodeled the property to a | ||||||
26 | destination outside Illinois, for use outside
Illinois.
|
| |||||||
| |||||||
1 | (5b) a sale or transfer of tangible personal property | ||||||
2 | which is produced by
the seller thereof on special order in | ||||||
3 | such a way as to have made the
applicable tax the Service | ||||||
4 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
5 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
6 | carrier by rail
which receives the physical possession of | ||||||
7 | such property in Illinois, and which
transports such | ||||||
8 | property, or shares with another common carrier in the
| ||||||
9 | transportation of such property, out of Illinois on a | ||||||
10 | standard uniform bill of
lading showing the seller of the | ||||||
11 | property as the shipper or consignor of such
property to a | ||||||
12 | destination outside Illinois, for use outside Illinois.
| ||||||
13 | (6) until July 1, 2003, a sale or transfer of | ||||||
14 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
15 | and assembled or installed by the retailer, which
machinery | ||||||
16 | and equipment is certified by the user to be used only for | ||||||
17 | the
production of ethyl alcohol that will be used for | ||||||
18 | consumption as motor fuel
or as a component of motor fuel | ||||||
19 | for the personal use of such user and not
subject to sale | ||||||
20 | or resale.
| ||||||
21 | (7) at the election of any serviceman not required to | ||||||
22 | be
otherwise registered as a retailer under Section 2a of | ||||||
23 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
24 | year sales
of service in which the aggregate annual cost | ||||||
25 | price of tangible
personal property transferred as an | ||||||
26 | incident to the sales of service is
less than 35%, or 75% |
| |||||||
| |||||||
1 | in the case of servicemen transferring prescription
drugs | ||||||
2 | or servicemen engaged in graphic arts production, of the | ||||||
3 | aggregate
annual total gross receipts from all sales of | ||||||
4 | service. The purchase of
such tangible personal property by | ||||||
5 | the serviceman shall be subject to tax
under the Retailers' | ||||||
6 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
7 | primary serviceman who has made the election described in | ||||||
8 | this paragraph
subcontracts service work to a secondary | ||||||
9 | serviceman who has also made the
election described in this | ||||||
10 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
11 | liability if the secondary serviceman (i) has paid or will | ||||||
12 | pay
Use
Tax on his or her cost price of any tangible | ||||||
13 | personal property transferred
to the primary serviceman | ||||||
14 | and (ii) certifies that fact in writing to the
primary
| ||||||
15 | serviceman.
| ||||||
16 | Tangible personal property transferred incident to the | ||||||
17 | completion of a
maintenance agreement is exempt from the tax | ||||||
18 | imposed pursuant to this Act.
| ||||||
19 | Exemption (5) also includes machinery and equipment used in | ||||||
20 | the general
maintenance or repair of such exempt machinery and | ||||||
21 | equipment or for in-house
manufacture of exempt machinery and | ||||||
22 | equipment. The machinery and equipment exemption does not | ||||||
23 | include machinery and equipment used in (i) the generation of | ||||||
24 | electricity for wholesale or retail sale; (ii) the generation | ||||||
25 | or treatment of natural or artificial gas for wholesale or | ||||||
26 | retail sale that is delivered to customers through pipes, |
| |||||||
| |||||||
1 | pipelines, or mains; or (iii) the treatment of water for | ||||||
2 | wholesale or retail sale that is delivered to customers through | ||||||
3 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
4 | Act of the 98th General Assembly are declaratory of existing | ||||||
5 | law as to the meaning and scope of this exemption. For the | ||||||
6 | purposes of exemption
(5), each of these terms shall have the | ||||||
7 | following meanings: (1) "manufacturing
process" shall mean the | ||||||
8 | production of any article of tangible personal
property, | ||||||
9 | whether such article is a finished product or an article for | ||||||
10 | use in
the process of manufacturing or assembling a different | ||||||
11 | article of tangible
personal property, by procedures commonly | ||||||
12 | regarded as manufacturing,
processing, fabricating, or | ||||||
13 | refining which changes some existing
material or materials into | ||||||
14 | a material with a different form, use or
name. In relation to a | ||||||
15 | recognized integrated business composed of a
series of | ||||||
16 | operations which collectively constitute manufacturing, or
| ||||||
17 | individually constitute manufacturing operations, the | ||||||
18 | manufacturing
process shall be deemed to commence with the | ||||||
19 | first operation or stage of
production in the series, and shall | ||||||
20 | not be deemed to end until the
completion of the final product | ||||||
21 | in the last operation or stage of
production in the series; and | ||||||
22 | further, for purposes of exemption (5),
photoprocessing is | ||||||
23 | deemed to be a manufacturing process of tangible
personal | ||||||
24 | property for wholesale or retail sale; (2) "assembling process" | ||||||
25 | shall
mean the production of any article of tangible personal | ||||||
26 | property, whether such
article is a finished product or an |
| |||||||
| |||||||
1 | article for use in the process of
manufacturing or assembling a | ||||||
2 | different article of tangible personal
property, by the | ||||||
3 | combination of existing materials in a manner commonly
regarded | ||||||
4 | as assembling which results in a material of a different form,
| ||||||
5 | use or name; (3) "machinery" shall mean major mechanical | ||||||
6 | machines or
major components of such machines contributing to a | ||||||
7 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
8 | include any independent
device or tool separate from any | ||||||
9 | machinery but essential to an
integrated manufacturing or | ||||||
10 | assembly process; including computers
used primarily in a | ||||||
11 | manufacturer's computer
assisted design, computer assisted | ||||||
12 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
13 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
14 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
15 | fixtures, patterns and molds; or any parts which require | ||||||
16 | periodic
replacement in the course of normal operation; but | ||||||
17 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
18 | chemicals acting as catalysts but only if the
chemicals or | ||||||
19 | chemicals acting as catalysts effect a direct and immediate | ||||||
20 | change
upon a
product being manufactured or assembled for | ||||||
21 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
22 | machinery and equipment who has an active
resale registration | ||||||
23 | number shall furnish such number to the seller at the
time of | ||||||
24 | purchase. The user of such machinery and equipment and tools
| ||||||
25 | without an active resale registration number shall prepare a | ||||||
26 | certificate of
exemption for each transaction stating facts |
| |||||||
| |||||||
1 | establishing the exemption for
that transaction, which | ||||||
2 | certificate shall be available to the Department
for inspection | ||||||
3 | or audit. The Department shall prescribe the form of the
| ||||||
4 | certificate.
| ||||||
5 | Any informal rulings, opinions or letters issued by the | ||||||
6 | Department in
response to an inquiry or request for any opinion | ||||||
7 | from any person
regarding the coverage and applicability of | ||||||
8 | exemption (5) to specific
devices shall be published, | ||||||
9 | maintained as a public record, and made
available for public | ||||||
10 | inspection and copying. If the informal ruling,
opinion or | ||||||
11 | letter contains trade secrets or other confidential
| ||||||
12 | information, where possible the Department shall delete such | ||||||
13 | information
prior to publication. Whenever such informal | ||||||
14 | rulings, opinions, or
letters contain any policy of general | ||||||
15 | applicability, the Department
shall formulate and adopt such | ||||||
16 | policy as a rule in accordance with the
provisions of the | ||||||
17 | Illinois Administrative Procedure Act.
| ||||||
18 | On and after July 1, 1987, no entity otherwise eligible | ||||||
19 | under exemption
(3) of this Section shall make tax free | ||||||
20 | purchases unless it has an active
exemption identification | ||||||
21 | number issued by the Department.
| ||||||
22 | The purchase, employment and transfer of such tangible | ||||||
23 | personal
property as newsprint and ink for the primary purpose | ||||||
24 | of conveying news
(with or without other information) is not a | ||||||
25 | purchase, use or sale of
service or of tangible personal | ||||||
26 | property within the meaning of this Act.
|
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| |||||||
1 | "Serviceman" means any person who is engaged in the | ||||||
2 | occupation of
making sales of service.
| ||||||
3 | "Sale at retail" means "sale at retail" as defined in the | ||||||
4 | Retailers'
Occupation Tax Act.
| ||||||
5 | "Supplier" means any person who makes sales of tangible | ||||||
6 | personal
property to servicemen for the purpose of resale as an | ||||||
7 | incident to a
sale of service.
| ||||||
8 | "Serviceman maintaining a place of business in this State", | ||||||
9 | or any
like term, means and includes any serviceman:
| ||||||
10 | 1. having or maintaining within this State, directly or | ||||||
11 | by a
subsidiary, an office, distribution house, sales | ||||||
12 | house, warehouse or
other place of business, or any agent | ||||||
13 | or other representative operating
within this State under | ||||||
14 | the authority of the serviceman or its
subsidiary, | ||||||
15 | irrespective of whether such place of business or agent or
| ||||||
16 | other representative is located here permanently or | ||||||
17 | temporarily, or
whether such serviceman or subsidiary is | ||||||
18 | licensed to do business in this
State; | ||||||
19 | 1.1. having a contract with a person located in this | ||||||
20 | State under which the person, for a commission or other | ||||||
21 | consideration based on the sale of service by the | ||||||
22 | serviceman, directly or indirectly refers potential | ||||||
23 | customers to the serviceman by providing to the potential | ||||||
24 | customers a promotional code or other mechanism that allows | ||||||
25 | the serviceman to track purchases referred by such persons. | ||||||
26 | Examples of mechanisms that allow the serviceman to track |
| |||||||
| |||||||
1 | purchases referred by such persons include but are not | ||||||
2 | limited to the use of a link on the person's Internet | ||||||
3 | website, promotional codes distributed through the | ||||||
4 | person's hand-delivered or mailed material, and | ||||||
5 | promotional codes distributed by the person through radio | ||||||
6 | or other broadcast media. The provisions of this paragraph | ||||||
7 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
8 | sales of service by the serviceman to customers who are | ||||||
9 | referred to the serviceman by all persons in this State | ||||||
10 | under such contracts exceed $10,000 during the preceding 4 | ||||||
11 | quarterly periods ending on the last day of March, June, | ||||||
12 | September, and December; a serviceman meeting the | ||||||
13 | requirements of this paragraph 1.1 shall be presumed to be | ||||||
14 | maintaining a place of business in this State but may rebut | ||||||
15 | this presumption by submitting proof that the referrals or | ||||||
16 | other activities pursued within this State by such persons | ||||||
17 | were not sufficient to meet the nexus standards of the | ||||||
18 | United States Constitution during the preceding 4 | ||||||
19 | quarterly periods; | ||||||
20 | 1.2. beginning July 1, 2011, having a contract with a | ||||||
21 | person located in this State under which: | ||||||
22 | A. the serviceman sells the same or substantially | ||||||
23 | similar line of services as the person located in this | ||||||
24 | State and does so using an identical or substantially | ||||||
25 | similar name, trade name, or trademark as the person | ||||||
26 | located in this State; and |
| |||||||
| |||||||
1 | B. the serviceman provides a commission or other | ||||||
2 | consideration to the person located in this State based | ||||||
3 | upon the sale of services by the serviceman. | ||||||
4 | The provisions of this paragraph 1.2 shall apply only if | ||||||
5 | the cumulative gross receipts from sales of service by the | ||||||
6 | serviceman to customers in this State under all such | ||||||
7 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
8 | periods ending on the last day of March, June, September, | ||||||
9 | and December;
| ||||||
10 | 2. soliciting orders for tangible personal property by | ||||||
11 | means of a
telecommunication or television shopping system | ||||||
12 | (which utilizes toll free
numbers) which is intended by the | ||||||
13 | retailer to be broadcast by cable
television or other means | ||||||
14 | of broadcasting, to consumers located in this State;
| ||||||
15 | 3. pursuant to a contract with a broadcaster or | ||||||
16 | publisher located in this
State, soliciting orders for | ||||||
17 | tangible personal property by means of advertising
which is | ||||||
18 | disseminated primarily to consumers located in this State | ||||||
19 | and only
secondarily to bordering jurisdictions;
| ||||||
20 | 4. soliciting orders for tangible personal property by | ||||||
21 | mail if the
solicitations are substantial and recurring and | ||||||
22 | if the retailer benefits
from any banking, financing, debt | ||||||
23 | collection, telecommunication, or
marketing activities | ||||||
24 | occurring in this State or benefits from the location
in | ||||||
25 | this State of authorized installation, servicing, or | ||||||
26 | repair facilities;
|
| |||||||
| |||||||
1 | 5. being owned or controlled by the same interests | ||||||
2 | which own or
control any retailer engaging in business in | ||||||
3 | the same or similar line of
business in this State;
| ||||||
4 | 6. having a franchisee or licensee operating under its | ||||||
5 | trade name if
the franchisee or licensee is required to | ||||||
6 | collect the tax under this Section;
| ||||||
7 | 7. pursuant to a contract with a cable television | ||||||
8 | operator located in
this State, soliciting orders for | ||||||
9 | tangible personal property by means of
advertising which is | ||||||
10 | transmitted or distributed over a cable television
system | ||||||
11 | in this State; or
| ||||||
12 | 8. engaging in activities in Illinois, which | ||||||
13 | activities in the
state in which the supply business | ||||||
14 | engaging in such activities is located
would constitute | ||||||
15 | maintaining a place of business in that state.
| ||||||
16 | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||||||
17 | (35 ILCS 110/3-5)
| ||||||
18 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
19 | personal property
is exempt from the tax imposed by this Act:
| ||||||
20 | (1) Personal property purchased from a corporation, | ||||||
21 | society,
association, foundation, institution, or | ||||||
22 | organization, other than a limited
liability company, that is | ||||||
23 | organized and operated as a not-for-profit service
enterprise | ||||||
24 | for the benefit of persons 65 years of age or older if the | ||||||
25 | personal
property was not purchased by the enterprise for the |
| |||||||
| |||||||
1 | purpose of resale by the
enterprise.
| ||||||
2 | (2) Personal property purchased by a non-profit Illinois | ||||||
3 | county fair
association for use in conducting, operating, or | ||||||
4 | promoting the county fair.
| ||||||
5 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
6 | cultural
organization that establishes, by proof required by | ||||||
7 | the Department by rule,
that it has received an exemption under | ||||||
8 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
9 | organized and operated primarily for the
presentation
or | ||||||
10 | support of arts or cultural programming, activities, or | ||||||
11 | services. These
organizations include, but are not limited to, | ||||||
12 | music and dramatic arts
organizations such as symphony | ||||||
13 | orchestras and theatrical groups, arts and
cultural service | ||||||
14 | organizations, local arts councils, visual arts organizations,
| ||||||
15 | and media arts organizations.
On and after the effective date | ||||||
16 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
17 | an entity otherwise eligible for this exemption shall not
make | ||||||
18 | tax-free purchases unless it has an active identification | ||||||
19 | number issued by
the Department.
| ||||||
20 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
21 | coinage issued
by the State of Illinois, the government of the | ||||||
22 | United States of America,
or the government of any foreign | ||||||
23 | country, and bullion.
| ||||||
24 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
25 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
26 | equipment, including
repair and
replacement parts, both new and |
| |||||||
| |||||||
1 | used, and including that manufactured on
special order or | ||||||
2 | purchased for lease, certified by the purchaser to be used
| ||||||
3 | primarily for graphic arts production.
Equipment includes | ||||||
4 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
5 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
6 | immediate
change upon a graphic arts product.
| ||||||
7 | (6) Personal property purchased from a teacher-sponsored | ||||||
8 | student
organization affiliated with an elementary or | ||||||
9 | secondary school located
in Illinois.
| ||||||
10 | (7) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
19 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
20 | but
excluding other motor vehicles required to be registered | ||||||
21 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
22 | hoop houses used for propagating, growing, or
overwintering | ||||||
23 | plants shall be considered farm machinery and equipment under
| ||||||
24 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
25 | shall include units sold
separately from a motor vehicle | ||||||
26 | required to be licensed and units sold mounted
on a motor |
| |||||||
| |||||||
1 | vehicle required to be licensed if the selling price of the | ||||||
2 | tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to,
soil testing sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and activities such as, but
not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. This item (7) is exempt
from the | ||||||
18 | provisions of
Section 3-75.
| ||||||
19 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
20 | to or used by an air common
carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment, or
storage in the conduct | ||||||
22 | of its business as an air common carrier, for a
flight destined | ||||||
23 | for or returning from a location or locations
outside the | ||||||
24 | United States without regard to previous or subsequent domestic
| ||||||
25 | stopovers.
| ||||||
26 | Beginning July 1, 2013, fuel and petroleum products sold to |
| |||||||
| |||||||
1 | or used by an air carrier, certified by the carrier to be used | ||||||
2 | for consumption, shipment, or storage in the conduct of its | ||||||
3 | business as an air common carrier, for a flight that (i) is | ||||||
4 | engaged in foreign trade or is engaged in trade between the | ||||||
5 | United States and any of its possessions and (ii) transports at | ||||||
6 | least one individual or package for hire from the city of | ||||||
7 | origination to the city of final destination on the same | ||||||
8 | aircraft, without regard to a change in the flight number of | ||||||
9 | that aircraft. | ||||||
10 | (9) Proceeds of mandatory service charges separately | ||||||
11 | stated on
customers' bills for the purchase and consumption of | ||||||
12 | food and beverages
acquired as an incident to the purchase of a | ||||||
13 | service from a serviceman, to
the extent that the proceeds of | ||||||
14 | the service charge are in fact
turned over as tips or as a | ||||||
15 | substitute for tips to the employees who
participate directly | ||||||
16 | in preparing, serving, hosting or cleaning up the
food or | ||||||
17 | beverage function with respect to which the service charge is | ||||||
18 | imposed.
| ||||||
19 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
20 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
21 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
22 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
23 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
24 | individual replacement part for oil field exploration,
| ||||||
25 | drilling, and production equipment, and (vi) machinery and | ||||||
26 | equipment purchased
for lease; but
excluding motor vehicles |
| |||||||
| |||||||
1 | required to be registered under the Illinois
Vehicle Code.
| ||||||
2 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
3 | and
equipment, including repair and replacement parts, both new | ||||||
4 | and
used, including that manufactured on special order, | ||||||
5 | certified by the
purchaser to be used primarily for | ||||||
6 | photoprocessing, and including
photoprocessing machinery and | ||||||
7 | equipment purchased for lease.
| ||||||
8 | (12) Until December 31, 2022, coal Coal and aggregate | ||||||
9 | exploration, mining, off-highway hauling,
processing,
| ||||||
10 | maintenance, and reclamation equipment, including
replacement | ||||||
11 | parts and equipment, and including
equipment purchased for | ||||||
12 | lease, but excluding motor vehicles required to be
registered | ||||||
13 | under the Illinois Vehicle Code. The changes made to this | ||||||
14 | Section by Public Act 97-767 apply on and after July 1, 2003, | ||||||
15 | but no claim for credit or refund is allowed on or after August | ||||||
16 | 16, 2013 (the effective date of Public Act 98-456)
for such | ||||||
17 | taxes paid during the period beginning July 1, 2003 and ending | ||||||
18 | on August 16, 2013 (the effective date of Public Act 98-456).
| ||||||
19 | (13) Semen used for artificial insemination of livestock | ||||||
20 | for direct
agricultural production.
| ||||||
21 | (14) Horses, or interests in horses, registered with and | ||||||
22 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
23 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
24 | Horse Association, United States
Trotting Association, or | ||||||
25 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
26 | racing for prizes. This item (14) is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 3-75, and the exemption provided for under this item | ||||||
2 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
3 | claim for credit or refund is allowed on or after the effective | ||||||
4 | date of this amendatory Act of the 95th General Assembly for | ||||||
5 | such taxes paid during the period beginning May 30, 2000 and | ||||||
6 | ending on the effective date of this amendatory Act of the 95th | ||||||
7 | General Assembly.
| ||||||
8 | (15) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients purchased by a | ||||||
11 | lessor who leases
the
equipment, under a lease of one year or | ||||||
12 | longer executed or in effect at the
time
the lessor would | ||||||
13 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
14 | hospital
that has been issued an active tax exemption | ||||||
15 | identification number by the
Department under Section 1g of the | ||||||
16 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
17 | manner that does not qualify for
this exemption
or is used in | ||||||
18 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
19 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
20 | be, based on the fair market value of the property at the time | ||||||
21 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
22 | attempt to collect an
amount (however
designated) that purports | ||||||
23 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
24 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
25 | the lessor. If a lessor improperly collects any such amount | ||||||
26 | from the
lessee, the lessee shall have a legal right to claim a |
| |||||||
| |||||||
1 | refund of that amount
from the lessor. If, however, that amount | ||||||
2 | is not refunded to the lessee for
any reason, the lessor is | ||||||
3 | liable to pay that amount to the Department.
| ||||||
4 | (16) Personal property purchased by a lessor who leases the
| ||||||
5 | property, under
a
lease of one year or longer executed or in | ||||||
6 | effect at the time
the lessor would otherwise be subject to the | ||||||
7 | tax imposed by this Act,
to a governmental body
that has been | ||||||
8 | issued an active tax exemption identification number by the
| ||||||
9 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
10 | Act.
If the
property is leased in a manner that does not | ||||||
11 | qualify for
this exemption
or is used in any other non-exempt | ||||||
12 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
13 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
14 | fair market value of the property at the time the
| ||||||
15 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
16 | to collect an
amount (however
designated) that purports to | ||||||
17 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
| ||||||
24 | (17) Beginning with taxable years ending on or after | ||||||
25 | December
31,
1995
and
ending with taxable years ending on or | ||||||
26 | before December 31, 2004,
personal property that is
donated for |
| |||||||
| |||||||
1 | disaster relief to be used in a State or federally declared
| ||||||
2 | disaster area in Illinois or bordering Illinois by a | ||||||
3 | manufacturer or retailer
that is registered in this State to a | ||||||
4 | corporation, society, association,
foundation, or institution | ||||||
5 | that has been issued a sales tax exemption
identification | ||||||
6 | number by the Department that assists victims of the disaster
| ||||||
7 | who reside within the declared disaster area.
| ||||||
8 | (18) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995 and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004, personal
property that is used in the | ||||||
11 | performance of infrastructure repairs in this
State, including | ||||||
12 | but not limited to municipal roads and streets, access roads,
| ||||||
13 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
14 | line extensions,
water distribution and purification | ||||||
15 | facilities, storm water drainage and
retention facilities, and | ||||||
16 | sewage treatment facilities, resulting from a State
or | ||||||
17 | federally declared disaster in Illinois or bordering Illinois | ||||||
18 | when such
repairs are initiated on facilities located in the | ||||||
19 | declared disaster area
within 6 months after the disaster.
| ||||||
20 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
21 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
22 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
23 | provisions
of
Section 3-75.
| ||||||
24 | (20) A motor vehicle, as that term is defined in Section | ||||||
25 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
26 | corporation, limited liability
company, society, association, |
| |||||||
| |||||||
1 | foundation, or institution that is determined by
the Department | ||||||
2 | to be organized and operated exclusively for educational
| ||||||
3 | purposes. For purposes of this exemption, "a corporation, | ||||||
4 | limited liability
company, society, association, foundation, | ||||||
5 | or institution organized and
operated
exclusively for | ||||||
6 | educational purposes" means all tax-supported public schools,
| ||||||
7 | private schools that offer systematic instruction in useful | ||||||
8 | branches of
learning by methods common to public schools and | ||||||
9 | that compare favorably in
their scope and intensity with the | ||||||
10 | course of study presented in tax-supported
schools, and | ||||||
11 | vocational or technical schools or institutes organized and
| ||||||
12 | operated exclusively to provide a course of study of not less | ||||||
13 | than 6 weeks
duration and designed to prepare individuals to | ||||||
14 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
15 | industrial, business, or commercial
occupation.
| ||||||
16 | (21) Beginning January 1, 2000, personal property, | ||||||
17 | including
food,
purchased through fundraising
events for the | ||||||
18 | benefit of
a public or private elementary or
secondary school, | ||||||
19 | a group of those schools, or one or more school
districts if | ||||||
20 | the events are
sponsored by an entity recognized by the school | ||||||
21 | district that consists
primarily of volunteers and includes
| ||||||
22 | parents and teachers of the school children. This paragraph | ||||||
23 | does not apply
to fundraising
events (i) for the benefit of | ||||||
24 | private home instruction or (ii)
for which the fundraising | ||||||
25 | entity purchases the personal property sold at
the events from | ||||||
26 | another individual or entity that sold the property for the
|
| |||||||
| |||||||
1 | purpose of resale by the fundraising entity and that
profits | ||||||
2 | from the sale to the
fundraising entity. This paragraph is | ||||||
3 | exempt
from the provisions
of Section 3-75.
| ||||||
4 | (22) Beginning January 1, 2000
and through December 31, | ||||||
5 | 2001, new or used automatic vending
machines that prepare and | ||||||
6 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
7 | items, and replacement parts for these machines.
Beginning | ||||||
8 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
9 | for machines used in
commercial, coin-operated
amusement
and | ||||||
10 | vending business if a use or occupation tax is paid on the | ||||||
11 | gross receipts
derived from
the use of the commercial, | ||||||
12 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
13 | is exempt from the provisions of Section 3-75.
| ||||||
14 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
15 | food for human consumption that is to be consumed off the
| ||||||
16 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
17 | drinks, and food that
has been prepared for immediate | ||||||
18 | consumption) and prescription and
nonprescription medicines, | ||||||
19 | drugs, medical appliances, and insulin, urine
testing | ||||||
20 | materials, syringes, and needles used by diabetics, for human | ||||||
21 | use, when
purchased for use by a person receiving medical | ||||||
22 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
23 | resides in a licensed long-term care facility,
as defined in | ||||||
24 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
25 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
26 | Specialized Mental Health Rehabilitation Act of 2013.
|
| |||||||
| |||||||
1 | (24) Beginning on the effective date of this amendatory Act | ||||||
2 | of the 92nd
General Assembly, computers and communications | ||||||
3 | equipment
utilized for any hospital purpose and equipment used | ||||||
4 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
5 | purchased by a lessor who leases
the equipment, under a lease | ||||||
6 | of one year or longer executed or in effect at the
time the | ||||||
7 | lessor would otherwise be subject to the tax imposed by this | ||||||
8 | Act, to a
hospital that has been issued an active tax exemption | ||||||
9 | identification number by
the Department under Section 1g of the | ||||||
10 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
11 | manner that does not qualify for this exemption or is
used in | ||||||
12 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
13 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
14 | be, based on the
fair market value of the property at the time | ||||||
15 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
16 | attempt to collect an amount (however
designated) that purports | ||||||
17 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
This paragraph is | ||||||
24 | exempt from the provisions of Section 3-75.
| ||||||
25 | (25) Beginning
on the effective date of this amendatory Act | ||||||
26 | of the 92nd General Assembly,
personal property purchased by a |
| |||||||
| |||||||
1 | lessor
who leases the property, under a lease of one year or | ||||||
2 | longer executed or in
effect at the time the lessor would | ||||||
3 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
4 | governmental body that has been issued an active tax exemption
| ||||||
5 | identification number by the Department under Section 1g of the | ||||||
6 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
7 | manner that does not
qualify for this exemption or is used in | ||||||
8 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
9 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
10 | be, based on the fair market value of the property at the time
| ||||||
11 | the nonqualifying use occurs. No lessor shall collect or | ||||||
12 | attempt to collect
an amount (however designated) that purports | ||||||
13 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
14 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
15 | the lessor. If a lessor improperly collects any such amount
| ||||||
16 | from the lessee, the lessee shall have a legal right to claim a | ||||||
17 | refund of that
amount from the lessor. If, however, that amount | ||||||
18 | is not refunded to the lessee
for any reason, the lessor is | ||||||
19 | liable to pay that amount to the Department.
This paragraph is | ||||||
20 | exempt from the provisions of Section 3-75.
| ||||||
21 | (26) Beginning January 1, 2008, tangible personal property | ||||||
22 | used in the construction or maintenance of a community water | ||||||
23 | supply, as defined under Section 3.145 of the Environmental | ||||||
24 | Protection Act, that is operated by a not-for-profit | ||||||
25 | corporation that holds a valid water supply permit issued under | ||||||
26 | Title IV of the Environmental Protection Act. This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 3-75.
| ||||||
2 | (27) Beginning January 1, 2010, materials, parts, | ||||||
3 | equipment, components, and furnishings incorporated into or | ||||||
4 | upon an aircraft as part of the modification, refurbishment, | ||||||
5 | completion, replacement, repair, or maintenance of the | ||||||
6 | aircraft. This exemption includes consumable supplies used in | ||||||
7 | the modification, refurbishment, completion, replacement, | ||||||
8 | repair, and maintenance of aircraft, but excludes any | ||||||
9 | materials, parts, equipment, components, and consumable | ||||||
10 | supplies used in the modification, replacement, repair, and | ||||||
11 | maintenance of aircraft engines or power plants, whether such | ||||||
12 | engines or power plants are installed or uninstalled upon any | ||||||
13 | such aircraft. "Consumable supplies" include, but are not | ||||||
14 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
15 | lubricants, cleaning solution, latex gloves, and protective | ||||||
16 | films. This exemption applies only to the use of qualifying | ||||||
17 | tangible personal property transferred incident to the | ||||||
18 | modification, refurbishment, completion, replacement, repair, | ||||||
19 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
20 | Agency Certificate and are empowered to operate an approved | ||||||
21 | repair station by the Federal Aviation Administration, (ii) | ||||||
22 | have a Class IV Rating, and (iii) conduct operations in | ||||||
23 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
24 | The exemption does not include aircraft operated by a | ||||||
25 | commercial air carrier providing scheduled passenger air | ||||||
26 | service pursuant to authority issued under Part 121 or Part 129 |
| |||||||
| |||||||
1 | of the Federal Aviation Regulations. The changes made to this | ||||||
2 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
3 | law. | ||||||
4 | (28) Tangible personal property purchased by a | ||||||
5 | public-facilities corporation, as described in Section | ||||||
6 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
7 | constructing or furnishing a municipal convention hall, but | ||||||
8 | only if the legal title to the municipal convention hall is | ||||||
9 | transferred to the municipality without any further | ||||||
10 | consideration by or on behalf of the municipality at the time | ||||||
11 | of the completion of the municipal convention hall or upon the | ||||||
12 | retirement or redemption of any bonds or other debt instruments | ||||||
13 | issued by the public-facilities corporation in connection with | ||||||
14 | the development of the municipal convention hall. This | ||||||
15 | exemption includes existing public-facilities corporations as | ||||||
16 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
17 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
18 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
19 | and menstrual cups. | ||||||
20 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
21 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
22 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
23 | Section 20-15. The Service Occupation Tax Act is amended by | ||||||
24 | changing Section 3-5 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 115/3-5)
| ||||||
2 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
3 | property is
exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property sold by a corporation, society, | ||||||
5 | association,
foundation, institution, or organization, other | ||||||
6 | than a limited liability
company, that is organized and | ||||||
7 | operated as a not-for-profit service enterprise
for the benefit | ||||||
8 | of persons 65 years of age or older if the personal property
| ||||||
9 | was not purchased by the enterprise for the purpose of resale | ||||||
10 | by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a not-for-profit | ||||||
12 | Illinois county fair
association for use in conducting, | ||||||
13 | operating, or promoting the county fair.
| ||||||
14 | (3) Personal property purchased by any not-for-profit
arts | ||||||
15 | or cultural organization that establishes, by proof required by | ||||||
16 | the
Department by
rule, that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after the effective date | ||||||
25 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
26 | an entity otherwise eligible for this exemption shall not
make |
| |||||||
| |||||||
1 | tax-free purchases unless it has an active identification | ||||||
2 | number issued by
the Department.
| ||||||
3 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
4 | coinage
issued by the State of Illinois, the government of the | ||||||
5 | United States of
America, or the government of any foreign | ||||||
6 | country, and bullion.
| ||||||
7 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
8 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
9 | equipment, including
repair and
replacement parts, both new and | ||||||
10 | used, and including that manufactured on
special order or | ||||||
11 | purchased for lease, certified by the purchaser to be used
| ||||||
12 | primarily for graphic arts production.
Equipment includes | ||||||
13 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
14 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
15 | immediate change
upon a graphic arts product.
| ||||||
16 | (6) Personal property sold by a teacher-sponsored student | ||||||
17 | organization
affiliated with an elementary or secondary school | ||||||
18 | located in Illinois.
| ||||||
19 | (7) Farm machinery and equipment, both new and used, | ||||||
20 | including that
manufactured on special order, certified by the | ||||||
21 | purchaser to be used
primarily for production agriculture or | ||||||
22 | State or federal agricultural
programs, including individual | ||||||
23 | replacement parts for the machinery and
equipment, including | ||||||
24 | machinery and equipment purchased for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but
excluding other motor vehicles required to be registered | ||||||
4 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
8 | shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to,
soil testing sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and activities such as, but
not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (7) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-55.
| ||||||
2 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
3 | to or used by an air common
carrier, certified by the carrier | ||||||
4 | to be used for consumption, shipment,
or storage in the conduct | ||||||
5 | of its business as an air common carrier, for
a flight destined | ||||||
6 | for or returning from a location or locations
outside the | ||||||
7 | United States without regard to previous or subsequent domestic
| ||||||
8 | stopovers.
| ||||||
9 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
10 | or used by an air carrier, certified by the carrier to be used | ||||||
11 | for consumption, shipment, or storage in the conduct of its | ||||||
12 | business as an air common carrier, for a flight that (i) is | ||||||
13 | engaged in foreign trade or is engaged in trade between the | ||||||
14 | United States and any of its possessions and (ii) transports at | ||||||
15 | least one individual or package for hire from the city of | ||||||
16 | origination to the city of final destination on the same | ||||||
17 | aircraft, without regard to a change in the flight number of | ||||||
18 | that aircraft. | ||||||
19 | (9) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages, to the extent that the proceeds of the | ||||||
22 | service charge are in fact
turned over as tips or as a | ||||||
23 | substitute for tips to the employees who
participate directly | ||||||
24 | in preparing, serving, hosting or cleaning up the
food or | ||||||
25 | beverage function with respect to which the service charge is | ||||||
26 | imposed.
|
| |||||||
| |||||||
1 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
3 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
6 | individual replacement part for oil field exploration,
| ||||||
7 | drilling, and production equipment, and (vi) machinery and | ||||||
8 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
9 | required to be registered under the Illinois
Vehicle Code.
| ||||||
10 | (11) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that | ||||||
12 | manufactured on
special order, certified by the purchaser to be | ||||||
13 | used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
15 | (12) Until December 31, 2022, coal Coal and aggregate | ||||||
16 | exploration, mining, off-highway hauling,
processing,
| ||||||
17 | maintenance, and reclamation equipment, including
replacement | ||||||
18 | parts and equipment, and including
equipment
purchased for | ||||||
19 | lease, but excluding motor vehicles required to be registered
| ||||||
20 | under the Illinois Vehicle Code. The changes made to this | ||||||
21 | Section by Public Act 97-767 apply on and after July 1, 2003, | ||||||
22 | but no claim for credit or refund is allowed on or after August | ||||||
23 | 16, 2013 (the effective date of Public Act 98-456)
for such | ||||||
24 | taxes paid during the period beginning July 1, 2003 and ending | ||||||
25 | on August 16, 2013 (the effective date of Public Act 98-456).
| ||||||
26 | (13) Beginning January 1, 1992 and through June 30, 2016, |
| |||||||
| |||||||
1 | food for human consumption that is to be consumed off the | ||||||
2 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
3 | drinks and food that
has been prepared for immediate | ||||||
4 | consumption) and prescription and
non-prescription medicines, | ||||||
5 | drugs, medical appliances, and insulin, urine
testing | ||||||
6 | materials, syringes, and needles used by diabetics, for human | ||||||
7 | use,
when purchased for use by a person receiving medical | ||||||
8 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
9 | resides in a licensed
long-term care facility, as defined in | ||||||
10 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
11 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
12 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
13 | (14) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (15) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes. This item (15) is exempt from the provisions | ||||||
21 | of Section 3-55, and the exemption provided for under this item | ||||||
22 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
23 | claim for credit or refund is allowed on or after January 1, | ||||||
24 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
25 | paid during the period beginning May 30, 2000 and ending on | ||||||
26 | January 1, 2008 (the effective date of Public Act 95-88).
|
| |||||||
| |||||||
1 | (16) Computers and communications equipment utilized for | ||||||
2 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
3 | analysis, or treatment of hospital patients sold to a lessor | ||||||
4 | who leases the
equipment, under a lease of one year or longer | ||||||
5 | executed or in effect at the
time of the purchase, to a
| ||||||
6 | hospital
that has been issued an active tax exemption | ||||||
7 | identification number by the
Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act.
| ||||||
9 | (17) Personal property sold to a lessor who leases the
| ||||||
10 | property, under a
lease of one year or longer executed or in | ||||||
11 | effect at the time of the purchase,
to a governmental body
that | ||||||
12 | has been issued an active tax exemption identification number | ||||||
13 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
14 | Tax Act.
| ||||||
15 | (18) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995
and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004,
personal property that is
donated for | ||||||
18 | disaster relief to be used in a State or federally declared
| ||||||
19 | disaster area in Illinois or bordering Illinois by a | ||||||
20 | manufacturer or retailer
that is registered in this State to a | ||||||
21 | corporation, society, association,
foundation, or institution | ||||||
22 | that has been issued a sales tax exemption
identification | ||||||
23 | number by the Department that assists victims of the disaster
| ||||||
24 | who reside within the declared disaster area.
| ||||||
25 | (19) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995 and
ending with taxable years ending on or |
| |||||||
| |||||||
1 | before December 31, 2004, personal
property that is used in the | ||||||
2 | performance of infrastructure repairs in this
State, including | ||||||
3 | but not limited to municipal roads and streets, access roads,
| ||||||
4 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
5 | line extensions,
water distribution and purification | ||||||
6 | facilities, storm water drainage and
retention facilities, and | ||||||
7 | sewage treatment facilities, resulting from a State
or | ||||||
8 | federally declared disaster in Illinois or bordering Illinois | ||||||
9 | when such
repairs are initiated on facilities located in the | ||||||
10 | declared disaster area
within 6 months after the disaster.
| ||||||
11 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
12 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
13 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
14 | provisions
of
Section 3-55.
| ||||||
15 | (21) A motor vehicle, as that term is defined in Section | ||||||
16 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
17 | corporation, limited liability
company, society, association, | ||||||
18 | foundation, or institution that is determined by
the Department | ||||||
19 | to be organized and operated exclusively for educational
| ||||||
20 | purposes. For purposes of this exemption, "a corporation, | ||||||
21 | limited liability
company, society, association, foundation, | ||||||
22 | or institution organized and
operated
exclusively for | ||||||
23 | educational purposes" means all tax-supported public schools,
| ||||||
24 | private schools that offer systematic instruction in useful | ||||||
25 | branches of
learning by methods common to public schools and | ||||||
26 | that compare favorably in
their scope and intensity with the |
| |||||||
| |||||||
1 | course of study presented in tax-supported
schools, and | ||||||
2 | vocational or technical schools or institutes organized and
| ||||||
3 | operated exclusively to provide a course of study of not less | ||||||
4 | than 6 weeks
duration and designed to prepare individuals to | ||||||
5 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
6 | industrial, business, or commercial
occupation.
| ||||||
7 | (22) Beginning January 1, 2000, personal property, | ||||||
8 | including
food,
purchased through fundraising
events for the | ||||||
9 | benefit of
a public or private elementary or
secondary school, | ||||||
10 | a group of those schools, or one or more school
districts if | ||||||
11 | the events are
sponsored by an entity recognized by the school | ||||||
12 | district that consists
primarily of volunteers and includes
| ||||||
13 | parents and teachers of the school children. This paragraph | ||||||
14 | does not apply
to fundraising
events (i) for the benefit of | ||||||
15 | private home instruction or (ii)
for which the fundraising | ||||||
16 | entity purchases the personal property sold at
the events from | ||||||
17 | another individual or entity that sold the property for the
| ||||||
18 | purpose of resale by the fundraising entity and that
profits | ||||||
19 | from the sale to the
fundraising entity. This paragraph is | ||||||
20 | exempt
from the provisions
of Section 3-55.
| ||||||
21 | (23) Beginning January 1, 2000
and through December 31, | ||||||
22 | 2001, new or used automatic vending
machines that prepare and | ||||||
23 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
24 | items, and replacement parts for these machines.
Beginning | ||||||
25 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
26 | for
machines used in commercial, coin-operated amusement
and |
| |||||||
| |||||||
1 | vending business if a use or occupation tax is paid on the | ||||||
2 | gross receipts
derived from
the use of the commercial, | ||||||
3 | coin-operated amusement and vending machines.
This paragraph | ||||||
4 | is exempt from the provisions of Section 3-55.
| ||||||
5 | (24) Beginning
on the effective date of this amendatory Act | ||||||
6 | of the 92nd General Assembly,
computers and communications | ||||||
7 | equipment
utilized for any hospital purpose and equipment used | ||||||
8 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
9 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
10 | year or longer executed or in effect at the
time of the | ||||||
11 | purchase, to a hospital that has been issued an active tax
| ||||||
12 | exemption identification number by the Department under | ||||||
13 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
14 | is exempt from the provisions of
Section 3-55.
| ||||||
15 | (25) Beginning
on the effective date of this amendatory Act | ||||||
16 | of the 92nd General Assembly,
personal property sold to a | ||||||
17 | lessor who
leases the property, under a lease of one year or | ||||||
18 | longer executed or in effect
at the time of the purchase, to a | ||||||
19 | governmental body that has been issued an
active tax exemption | ||||||
20 | identification number by the Department under Section 1g
of the | ||||||
21 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
22 | the
provisions of Section 3-55.
| ||||||
23 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
24 | 2016, tangible personal property
purchased
from an Illinois | ||||||
25 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
26 | activities in Illinois who will, upon receipt of the property |
| |||||||
| |||||||
1 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
2 | the purpose of subsequently
transporting it outside this State | ||||||
3 | for use or consumption thereafter solely
outside this State or | ||||||
4 | (ii) for the purpose of being processed, fabricated, or
| ||||||
5 | manufactured into, attached to, or incorporated into other | ||||||
6 | tangible personal
property to be transported outside this State | ||||||
7 | and thereafter used or consumed
solely outside this State. The | ||||||
8 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
9 | accordance with the Illinois Administrative Procedure Act, | ||||||
10 | issue a
permit to any taxpayer in good standing with the | ||||||
11 | Department who is eligible for
the exemption under this | ||||||
12 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
13 | shall authorize the holder, to the extent and
in the manner | ||||||
14 | specified in the rules adopted under this Act, to purchase
| ||||||
15 | tangible personal property from a retailer exempt from the | ||||||
16 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
17 | necessary books and records to
substantiate the use and | ||||||
18 | consumption of all such tangible personal property
outside of | ||||||
19 | the State of Illinois.
| ||||||
20 | (27) Beginning January 1, 2008, tangible personal property | ||||||
21 | used in the construction or maintenance of a community water | ||||||
22 | supply, as defined under Section 3.145 of the Environmental | ||||||
23 | Protection Act, that is operated by a not-for-profit | ||||||
24 | corporation that holds a valid water supply permit issued under | ||||||
25 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
26 | exempt from the provisions of Section 3-55.
|
| |||||||
| |||||||
1 | (28) Tangible personal property sold to a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, but | ||||||
5 | only if the legal title to the municipal convention hall is | ||||||
6 | transferred to the municipality without any further | ||||||
7 | consideration by or on behalf of the municipality at the time | ||||||
8 | of the completion of the municipal convention hall or upon the | ||||||
9 | retirement or redemption of any bonds or other debt instruments | ||||||
10 | issued by the public-facilities corporation in connection with | ||||||
11 | the development of the municipal convention hall. This | ||||||
12 | exemption includes existing public-facilities corporations as | ||||||
13 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
14 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
15 | (29) Beginning January 1, 2010, materials, parts, | ||||||
16 | equipment, components, and furnishings incorporated into or | ||||||
17 | upon an aircraft as part of the modification, refurbishment, | ||||||
18 | completion, replacement, repair, or maintenance of the | ||||||
19 | aircraft. This exemption includes consumable supplies used in | ||||||
20 | the modification, refurbishment, completion, replacement, | ||||||
21 | repair, and maintenance of aircraft, but excludes any | ||||||
22 | materials, parts, equipment, components, and consumable | ||||||
23 | supplies used in the modification, replacement, repair, and | ||||||
24 | maintenance of aircraft engines or power plants, whether such | ||||||
25 | engines or power plants are installed or uninstalled upon any | ||||||
26 | such aircraft. "Consumable supplies" include, but are not |
| |||||||
| |||||||
1 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
2 | lubricants, cleaning solution, latex gloves, and protective | ||||||
3 | films. This exemption applies only to the transfer of | ||||||
4 | qualifying tangible personal property incident to the | ||||||
5 | modification, refurbishment, completion, replacement, repair, | ||||||
6 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
7 | Agency Certificate and are empowered to operate an approved | ||||||
8 | repair station by the Federal Aviation Administration, (ii) | ||||||
9 | have a Class IV Rating, and (iii) conduct operations in | ||||||
10 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
11 | The exemption does not include aircraft operated by a | ||||||
12 | commercial air carrier providing scheduled passenger air | ||||||
13 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
14 | of the Federal Aviation Regulations. The changes made to this | ||||||
15 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
16 | law. | ||||||
17 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
18 | and menstrual cups. | ||||||
19 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
20 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
21 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
22 | Section 20-20. The Retailers' Occupation Tax Act is amended | ||||||
23 | by changing Sections 1, 2-5, and 2a as follows:
| ||||||
24 | (35 ILCS 120/1) (from Ch. 120, par. 440)
|
| |||||||
| |||||||
1 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
2 | the
ownership of or title to
tangible personal property to a | ||||||
3 | purchaser, for the purpose of use or
consumption, and not for | ||||||
4 | the purpose of resale in any form as tangible
personal property | ||||||
5 | to the extent not first subjected to a use for which it
was | ||||||
6 | purchased, for a valuable consideration: Provided that the | ||||||
7 | property
purchased is deemed to be purchased for the purpose of | ||||||
8 | resale, despite
first being used, to the extent to which it is | ||||||
9 | resold as an ingredient of
an intentionally produced product or | ||||||
10 | byproduct of manufacturing. For this
purpose, slag produced as | ||||||
11 | an incident to manufacturing pig iron or steel
and sold is | ||||||
12 | considered to be an intentionally produced byproduct of
| ||||||
13 | manufacturing. Transactions whereby the possession of the | ||||||
14 | property is
transferred but the seller retains the title as | ||||||
15 | security for payment of the
selling price shall be deemed to be | ||||||
16 | sales.
| ||||||
17 | "Sale at retail" shall be construed to include any transfer | ||||||
18 | of the
ownership of or title to tangible personal property to a | ||||||
19 | purchaser, for use
or consumption by any other person to whom | ||||||
20 | such purchaser may transfer the
tangible personal property | ||||||
21 | without a valuable consideration, and to include
any transfer, | ||||||
22 | whether made for or without a valuable consideration, for
| ||||||
23 | resale in any form as tangible personal property unless made in | ||||||
24 | compliance
with Section 2c of this Act.
| ||||||
25 | Sales of tangible personal property, which property, to the | ||||||
26 | extent not
first subjected to a use for which it was purchased, |
| |||||||
| |||||||
1 | as an ingredient or
constituent, goes into and forms a part of | ||||||
2 | tangible personal property
subsequently the subject of a "Sale | ||||||
3 | at retail", are not sales at retail as
defined in this Act: | ||||||
4 | Provided that the property purchased is deemed to be
purchased | ||||||
5 | for the purpose of resale, despite first being used, to the
| ||||||
6 | extent to which it is resold as an ingredient of an | ||||||
7 | intentionally produced
product or byproduct of manufacturing.
| ||||||
8 | "Sale at retail" shall be construed to include any Illinois | ||||||
9 | florist's
sales transaction in which the purchase order is | ||||||
10 | received in Illinois by a
florist and the sale is for use or | ||||||
11 | consumption, but the Illinois florist
has a florist in another | ||||||
12 | state deliver the property to the purchaser or the
purchaser's | ||||||
13 | donee in such other state.
| ||||||
14 | Nonreusable tangible personal property that is used by | ||||||
15 | persons engaged in
the business of operating a restaurant, | ||||||
16 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
17 | transferred to customers in the ordinary course of business
as | ||||||
18 | part of the sale of food or beverages and is used to deliver, | ||||||
19 | package, or
consume food or beverages, regardless of where | ||||||
20 | consumption of the food or
beverages occurs. Examples of those | ||||||
21 | items include, but are not limited to
nonreusable, paper and | ||||||
22 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
23 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
24 | and
wrapping or packaging
materials that are transferred to | ||||||
25 | customers as part of the sale of food or
beverages in the | ||||||
26 | ordinary course of business.
|
| |||||||
| |||||||
1 | The purchase, employment and transfer of such tangible | ||||||
2 | personal property
as newsprint and ink for the primary purpose | ||||||
3 | of conveying news (with or
without other information) is not a | ||||||
4 | purchase, use or sale of tangible
personal property.
| ||||||
5 | A person whose activities are organized and conducted | ||||||
6 | primarily as a
not-for-profit service enterprise, and who | ||||||
7 | engages in selling tangible
personal property at retail | ||||||
8 | (whether to the public or merely to members and
their guests) | ||||||
9 | is engaged in the business of selling tangible personal
| ||||||
10 | property at retail with respect to such transactions, excepting | ||||||
11 | only a
person organized and operated exclusively for | ||||||
12 | charitable, religious or
educational purposes either (1), to | ||||||
13 | the extent of sales by such person to
its members, students, | ||||||
14 | patients or inmates of tangible personal property to
be used | ||||||
15 | primarily for the purposes of such person, or (2), to the | ||||||
16 | extent of
sales by such person of tangible personal property | ||||||
17 | which is not sold or
offered for sale by persons organized for | ||||||
18 | profit. The selling of school
books and school supplies by | ||||||
19 | schools at retail to students is not
"primarily for the | ||||||
20 | purposes of" the school which does such selling. The
provisions | ||||||
21 | of this paragraph shall not apply to nor subject to taxation
| ||||||
22 | occasional dinners, socials or similar activities of a person | ||||||
23 | organized and
operated exclusively for charitable, religious | ||||||
24 | or educational purposes,
whether or not such activities are | ||||||
25 | open to the public.
| ||||||
26 | A person who is the recipient of a grant or contract under |
| |||||||
| |||||||
1 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
2 | serves meals to
participants in the federal Nutrition Program | ||||||
3 | for the Elderly in return for
contributions established in | ||||||
4 | amount by the individual participant pursuant
to a schedule of | ||||||
5 | suggested fees as provided for in the federal Act is not
| ||||||
6 | engaged in the business of selling tangible personal property | ||||||
7 | at retail
with respect to such transactions.
| ||||||
8 | "Purchaser" means anyone who, through a sale at retail, | ||||||
9 | acquires the
ownership of or title to tangible personal | ||||||
10 | property for a valuable
consideration.
| ||||||
11 | "Reseller of motor fuel" means any person engaged in the | ||||||
12 | business of selling
or delivering or transferring title of | ||||||
13 | motor fuel to another person
other than for use or consumption.
| ||||||
14 | No person shall act as a reseller of motor fuel within this | ||||||
15 | State without
first being registered as a reseller pursuant to | ||||||
16 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
17 | "Selling price" or the "amount of sale" means the | ||||||
18 | consideration for a
sale valued in money whether received in | ||||||
19 | money or otherwise, including
cash, credits, property, other | ||||||
20 | than as hereinafter provided, and services,
but not including | ||||||
21 | the value of or credit given for traded-in tangible
personal | ||||||
22 | property where the item that is traded-in is of like kind and
| ||||||
23 | character as that which is being sold, and shall be determined | ||||||
24 | without any
deduction on account of the cost of the property | ||||||
25 | sold, the cost of
materials used, labor or service cost or any | ||||||
26 | other expense whatsoever, but
does not include charges that are |
| |||||||
| |||||||
1 | added to prices by sellers on account of
the seller's tax | ||||||
2 | liability under this Act, or on account of the seller's
duty to | ||||||
3 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
4 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
5 | cigarette tax imposed by a home rule unit, on account of the | ||||||
6 | seller's tax liability under any local occupation tax | ||||||
7 | administered by the Department, or, except as otherwise | ||||||
8 | provided with respect to any cigarette tax imposed by a home | ||||||
9 | rule unit on account of the seller's duty to collect, from the | ||||||
10 | purchasers, the tax that is imposed under any local use tax | ||||||
11 | administered by the Department.
Effective December 1, 1985, | ||||||
12 | "selling price" shall include charges that
are added to prices | ||||||
13 | by sellers on account of the seller's
tax liability under the | ||||||
14 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
15 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
16 | Act, and on account of the seller's duty to collect, from the
| ||||||
17 | purchaser, any cigarette tax imposed by a home rule unit. | ||||||
18 | Beginning January 1, 2018, "selling price" shall not include | ||||||
19 | any shipping or delivery charges, which means any freight, | ||||||
20 | express, mail, truck, or other carrier conveyance or delivery | ||||||
21 | process.
| ||||||
22 | Notwithstanding any law to the contrary, for any motor | ||||||
23 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
24 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
25 | the vehicle for a defined period that is longer than one year | ||||||
26 | and (1) is a motor vehicle of the second division that: (A) is |
| |||||||
| |||||||
1 | a self-contained motor vehicle designed or permanently | ||||||
2 | converted to provide living quarters for recreational, | ||||||
3 | camping, or travel use, with direct walk through access to the | ||||||
4 | living quarters from the driver's seat; (B) is of the van | ||||||
5 | configuration designed for the transportation of not less than | ||||||
6 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
7 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
8 | of the first division, "selling price" or "amount of sale" | ||||||
9 | means the consideration received by the lessor pursuant to the | ||||||
10 | lease contract, including amounts due at lease signing and all | ||||||
11 | monthly or other regular payments charged over the term of the | ||||||
12 | lease. Also included in the selling price is any amount | ||||||
13 | received by the lessor from the lessee for the leased vehicle | ||||||
14 | that is not calculated at the time the lease is executed, | ||||||
15 | including, but not limited to, excess mileage charges and | ||||||
16 | charges for excess wear and tear. For sales that occur in | ||||||
17 | Illinois, with respect to any amount received by the lessor | ||||||
18 | from the lessee for the leased vehicle that is not calculated | ||||||
19 | at the time the lease is executed, the lessor who purchased the | ||||||
20 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
21 | on those amounts, and the retailer who makes the retail sale of | ||||||
22 | the motor vehicle to the lessor is not required to collect the | ||||||
23 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
24 | Act on those amounts. However, the lessor who purchased the | ||||||
25 | motor vehicle assumes the liability for reporting and paying | ||||||
26 | the tax on those amounts directly to the Department in the same |
| |||||||
| |||||||
1 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
2 | occupation taxes, if applicable) in which the retailer would | ||||||
3 | have reported and paid such tax if the retailer had accounted | ||||||
4 | for the tax to the Department. For amounts received by the | ||||||
5 | lessor from the lessee that are not calculated at the time the | ||||||
6 | lease is executed, the lessor must file the return and pay the | ||||||
7 | tax to the Department by the due date otherwise required by | ||||||
8 | this Act for returns other than transaction returns. If the | ||||||
9 | retailer is entitled under this Act to a discount for | ||||||
10 | collecting and remitting the tax imposed under this Act to the | ||||||
11 | Department with respect to the sale of the motor vehicle to the | ||||||
12 | lessor, then the right to the discount provided in this Act | ||||||
13 | shall be transferred to the lessor with respect to the tax paid | ||||||
14 | by the lessor for any amount received by the lessor from the | ||||||
15 | lessee for the leased vehicle that is not calculated at the | ||||||
16 | time the lease is executed; provided that the discount is only | ||||||
17 | allowed if the return is timely filed and for amounts timely | ||||||
18 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
19 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
20 | period of longer than one year shall not be reduced by the | ||||||
21 | value of or credit given for traded-in tangible personal | ||||||
22 | property owned by the lessor, nor shall it be reduced by the | ||||||
23 | value of or credit given for traded-in tangible personal | ||||||
24 | property owned by the lessee, regardless of whether the | ||||||
25 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
26 | In the case of a motor vehicle that is sold for the purpose of |
| |||||||
| |||||||
1 | leasing for a defined period of longer than one year, the sale | ||||||
2 | occurs at the time of the delivery of the vehicle, regardless | ||||||
3 | of the due date of any lease payments. A lessor who incurs a | ||||||
4 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
5 | vehicle coming off lease may not take a credit against that | ||||||
6 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
7 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
8 | to any amount received by the lessor from the lessee for the | ||||||
9 | leased vehicle that was not calculated at the time the lease | ||||||
10 | was executed) if the selling price of the motor vehicle at the | ||||||
11 | time of purchase was calculated using the definition of | ||||||
12 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
13 | any other provision of this Act to the contrary, lessors shall | ||||||
14 | file all returns and make all payments required under this | ||||||
15 | paragraph to the Department by electronic means in the manner | ||||||
16 | and form as required by the Department. This paragraph does not | ||||||
17 | apply to leases of motor vehicles for which, at the time the | ||||||
18 | lease is entered into, the term of the lease is not a defined | ||||||
19 | period, including leases with a defined initial period with the | ||||||
20 | option to continue the lease on a month-to-month or other basis | ||||||
21 | beyond the initial defined period. | ||||||
22 | The phrase "like kind and character" shall be liberally | ||||||
23 | construed
(including but not limited to any form of motor | ||||||
24 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
25 | agricultural implement for any other
kind of farm or | ||||||
26 | agricultural implement), while not including a kind of item
|
| |||||||
| |||||||
1 | which, if sold at retail by that retailer, would be exempt from | ||||||
2 | retailers'
occupation tax and use tax as an isolated or | ||||||
3 | occasional sale.
| ||||||
4 | "Gross receipts" from the sales of tangible personal | ||||||
5 | property at retail
means the total selling price or the amount | ||||||
6 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
7 | and time sales, the amount thereof shall be
included only as | ||||||
8 | and when payments are received by the seller.
Receipts or other | ||||||
9 | consideration derived by a seller from
the sale, transfer or | ||||||
10 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
11 | will not be deemed payments prior to the time the purchaser
| ||||||
12 | makes payment on such accounts.
| ||||||
13 | "Department" means the Department of Revenue.
| ||||||
14 | "Person" means any natural individual, firm, partnership, | ||||||
15 | association,
joint stock company, joint adventure, public or | ||||||
16 | private corporation, limited
liability company, or a receiver, | ||||||
17 | executor, trustee, guardian or other
representative appointed | ||||||
18 | by order of any court.
| ||||||
19 | The isolated or occasional sale of tangible personal | ||||||
20 | property at retail
by a person who does not hold himself out as | ||||||
21 | being engaged (or who does not
habitually engage) in selling | ||||||
22 | such tangible personal property at retail, or
a sale through a | ||||||
23 | bulk vending machine, does not constitute engaging in a
| ||||||
24 | business of selling such tangible personal property at retail | ||||||
25 | within the
meaning of this Act; provided that any person who is | ||||||
26 | engaged in a business
which is not subject to the tax imposed |
| |||||||
| |||||||
1 | by this Act because of involving
the sale of or a contract to | ||||||
2 | sell real estate or a construction contract to
improve real | ||||||
3 | estate or a construction contract to engineer, install, and
| ||||||
4 | maintain an integrated system of products, but who, in the | ||||||
5 | course of
conducting such business,
transfers tangible | ||||||
6 | personal property to users or consumers in the finished
form in | ||||||
7 | which it was purchased, and which does not become real estate | ||||||
8 | or was
not engineered and installed, under any provision of a | ||||||
9 | construction contract or
real estate sale or real estate sales | ||||||
10 | agreement entered into with some other
person arising out of or | ||||||
11 | because of such nontaxable business, is engaged in the
business | ||||||
12 | of selling tangible personal property at retail to the extent | ||||||
13 | of the
value of the tangible personal property so transferred. | ||||||
14 | If, in such a
transaction, a separate charge is made for the | ||||||
15 | tangible personal property so
transferred, the value of such | ||||||
16 | property, for the purpose of this Act, shall be
the amount so | ||||||
17 | separately charged, but not less than the cost of such property
| ||||||
18 | to the transferor; if no separate charge is made, the value of | ||||||
19 | such property,
for the purposes of this Act, is the cost to the | ||||||
20 | transferor of such tangible
personal property. Construction | ||||||
21 | contracts for the improvement of real estate
consisting of | ||||||
22 | engineering, installation, and maintenance of voice, data, | ||||||
23 | video,
security, and all telecommunication systems do not | ||||||
24 | constitute engaging in a
business of selling tangible personal | ||||||
25 | property at retail within the meaning of
this Act if they are | ||||||
26 | sold at one specified contract price.
|
| |||||||
| |||||||
1 | A person who holds himself or herself out as being engaged | ||||||
2 | (or who habitually
engages) in selling tangible personal | ||||||
3 | property at retail is a person
engaged in the business of | ||||||
4 | selling tangible personal property at retail
hereunder with | ||||||
5 | respect to such sales (and not primarily in a service
| ||||||
6 | occupation) notwithstanding the fact that such person designs | ||||||
7 | and produces
such tangible personal property on special order | ||||||
8 | for the purchaser and in
such a way as to render the property | ||||||
9 | of value only to such purchaser, if
such tangible personal | ||||||
10 | property so produced on special order serves
substantially the | ||||||
11 | same function as stock or standard items of tangible
personal | ||||||
12 | property that are sold at retail.
| ||||||
13 | Persons who engage in the business of transferring tangible | ||||||
14 | personal
property upon the redemption of trading stamps are | ||||||
15 | engaged in the business
of selling such property at retail and | ||||||
16 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
17 | on the basis of the retail value of the
property transferred | ||||||
18 | upon redemption of such stamps.
| ||||||
19 | "Bulk vending machine" means a vending machine,
containing | ||||||
20 | unsorted confections, nuts, toys, or other items designed
| ||||||
21 | primarily to be used or played with by children
which, when a | ||||||
22 | coin or coins of a denomination not larger than $0.50 are
| ||||||
23 | inserted, are dispensed in equal portions, at random and
| ||||||
24 | without selection by the customer.
| ||||||
25 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
|
| |||||||
| |||||||
1 | (35 ILCS 120/2-5)
| ||||||
2 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
3 | sale of
the following tangible personal property are exempt | ||||||
4 | from the tax imposed
by this Act:
| ||||||
5 | (1) Farm chemicals.
| ||||||
6 | (2) Farm machinery and equipment, both new and used, | ||||||
7 | including that
manufactured on special order, certified by the | ||||||
8 | purchaser to be used
primarily for production agriculture or | ||||||
9 | State or federal agricultural
programs, including individual | ||||||
10 | replacement parts for the machinery and
equipment, including | ||||||
11 | machinery and equipment purchased for lease,
and including | ||||||
12 | implements of husbandry defined in Section 1-130 of
the | ||||||
13 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
14 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
15 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
16 | but
excluding other motor vehicles required to be registered | ||||||
17 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
18 | hoop houses used for propagating, growing, or
overwintering | ||||||
19 | plants shall be considered farm machinery and equipment under
| ||||||
20 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
21 | shall include units sold
separately from a motor vehicle | ||||||
22 | required to be licensed and units sold mounted
on a motor | ||||||
23 | vehicle required to be licensed, if the selling price of the | ||||||
24 | tender
is separately stated.
| ||||||
25 | Farm machinery and equipment shall include precision | ||||||
26 | farming equipment
that is
installed or purchased to be |
| |||||||
| |||||||
1 | installed on farm machinery and equipment
including, but not | ||||||
2 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
3 | or spreaders.
Precision farming equipment includes, but is not | ||||||
4 | limited to,
soil testing sensors, computers, monitors, | ||||||
5 | software, global positioning
and mapping systems, and other | ||||||
6 | such equipment.
| ||||||
7 | Farm machinery and equipment also includes computers, | ||||||
8 | sensors, software, and
related equipment used primarily in the
| ||||||
9 | computer-assisted operation of production agriculture | ||||||
10 | facilities, equipment,
and activities such as, but
not limited | ||||||
11 | to,
the collection, monitoring, and correlation of
animal and | ||||||
12 | crop data for the purpose of
formulating animal diets and | ||||||
13 | agricultural chemicals. This item (2) is exempt
from the | ||||||
14 | provisions of
Section 2-70.
| ||||||
15 | (3) Until July 1, 2003, distillation machinery and | ||||||
16 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
17 | retailer, certified by the user to be used
only for the | ||||||
18 | production of ethyl alcohol that will be used for consumption
| ||||||
19 | as motor fuel or as a component of motor fuel for the personal | ||||||
20 | use of the
user, and not subject to sale or resale.
| ||||||
21 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
22 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
23 | equipment, including
repair and
replacement parts, both new and | ||||||
24 | used, and including that manufactured on
special order or | ||||||
25 | purchased for lease, certified by the purchaser to be used
| ||||||
26 | primarily for graphic arts production.
Equipment includes |
| |||||||
| |||||||
1 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
2 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
3 | immediate
change upon a
graphic arts product.
| ||||||
4 | (5) A motor vehicle that is used for automobile renting, as | ||||||
5 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
6 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
7 | (6) Personal property sold by a teacher-sponsored student | ||||||
8 | organization
affiliated with an elementary or secondary school | ||||||
9 | located in Illinois.
| ||||||
10 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
11 | selling price of
a passenger car the
sale of which is subject | ||||||
12 | to the Replacement Vehicle Tax.
| ||||||
13 | (8) Personal property sold to an Illinois county fair | ||||||
14 | association for
use in conducting, operating, or promoting the | ||||||
15 | county fair.
| ||||||
16 | (9) Personal property sold to a not-for-profit arts
or | ||||||
17 | cultural organization that establishes, by proof required by | ||||||
18 | the Department
by
rule, that it has received an exemption under | ||||||
19 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
20 | organized and operated primarily for the
presentation
or | ||||||
21 | support of arts or cultural programming, activities, or | ||||||
22 | services. These
organizations include, but are not limited to, | ||||||
23 | music and dramatic arts
organizations such as symphony | ||||||
24 | orchestras and theatrical groups, arts and
cultural service | ||||||
25 | organizations, local arts councils, visual arts organizations,
| ||||||
26 | and media arts organizations.
On and after the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
2 | an entity otherwise eligible for this exemption shall not
make | ||||||
3 | tax-free purchases unless it has an active identification | ||||||
4 | number issued by
the Department.
| ||||||
5 | (10) Personal property sold by a corporation, society, | ||||||
6 | association,
foundation, institution, or organization, other | ||||||
7 | than a limited liability
company, that is organized and | ||||||
8 | operated as a not-for-profit service enterprise
for the benefit | ||||||
9 | of persons 65 years of age or older if the personal property
| ||||||
10 | was not purchased by the enterprise for the purpose of resale | ||||||
11 | by the
enterprise.
| ||||||
12 | (11) Personal property sold to a governmental body, to a | ||||||
13 | corporation,
society, association, foundation, or institution | ||||||
14 | organized and operated
exclusively for charitable, religious, | ||||||
15 | or educational purposes, or to a
not-for-profit corporation, | ||||||
16 | society, association, foundation, institution,
or organization | ||||||
17 | that has no compensated officers or employees and that is
| ||||||
18 | organized and operated primarily for the recreation of persons | ||||||
19 | 55 years of
age or older. A limited liability company may | ||||||
20 | qualify for the exemption under
this paragraph only if the | ||||||
21 | limited liability company is organized and operated
| ||||||
22 | exclusively for educational purposes. On and after July 1, | ||||||
23 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
24 | shall make tax-free purchases
unless it has an active | ||||||
25 | identification number issued by the Department.
| ||||||
26 | (12) Tangible personal property sold to
interstate |
| |||||||
| |||||||
1 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
2 | commerce or to lessors under leases of
one year or longer | ||||||
3 | executed or in effect at the time of purchase by
interstate | ||||||
4 | carriers for hire for use as rolling stock moving in interstate
| ||||||
5 | commerce and equipment operated by a telecommunications | ||||||
6 | provider, licensed as a
common carrier by the Federal | ||||||
7 | Communications Commission, which is permanently
installed in | ||||||
8 | or affixed to aircraft moving in interstate commerce.
| ||||||
9 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
10 | motor vehicles of the second division
with a gross vehicle | ||||||
11 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
12 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
13 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
14 | through June 30, 2005, the use in this State of motor vehicles | ||||||
15 | of the second division: (i) with a gross vehicle weight rating | ||||||
16 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
17 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
18 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
19 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
20 | applies to repair and replacement parts added
after the
initial | ||||||
21 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
22 | in a
manner that
would qualify for the rolling stock exemption | ||||||
23 | otherwise provided for in this
Act. For purposes of this | ||||||
24 | paragraph, "used for commercial purposes" means the | ||||||
25 | transportation of persons or property in furtherance of any | ||||||
26 | commercial or industrial enterprise whether for-hire or not.
|
| |||||||
| |||||||
1 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
2 | tangible personal property that is utilized by interstate | ||||||
3 | carriers for
hire for use as rolling stock moving in interstate | ||||||
4 | commerce
and equipment operated by a telecommunications | ||||||
5 | provider, licensed as a
common carrier by the Federal | ||||||
6 | Communications Commission, which is
permanently installed in | ||||||
7 | or affixed to aircraft moving in interstate commerce.
| ||||||
8 | (14) Machinery and equipment that will be used by the | ||||||
9 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
10 | process of manufacturing or
assembling tangible personal | ||||||
11 | property for wholesale or retail sale or
lease, whether the | ||||||
12 | sale or lease is made directly by the manufacturer or by
some | ||||||
13 | other person, whether the materials used in the process are | ||||||
14 | owned by
the manufacturer or some other person, or whether the | ||||||
15 | sale or lease is made
apart from or as an incident to the | ||||||
16 | seller's engaging in the service
occupation of producing | ||||||
17 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
18 | items of no commercial value on special order for a particular
| ||||||
19 | purchaser. The exemption provided by this paragraph (14) does | ||||||
20 | not include machinery and equipment used in (i) the generation | ||||||
21 | of electricity for wholesale or retail sale; (ii) the | ||||||
22 | generation or treatment of natural or artificial gas for | ||||||
23 | wholesale or retail sale that is delivered to customers through | ||||||
24 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
25 | wholesale or retail sale that is delivered to customers through | ||||||
26 | pipes, pipelines, or mains. The provisions of Public Act 98-583 |
| |||||||
| |||||||
1 | are declaratory of existing law as to the meaning and scope of | ||||||
2 | this exemption.
| ||||||
3 | (15) Proceeds of mandatory service charges separately | ||||||
4 | stated on
customers' bills for purchase and consumption of food | ||||||
5 | and beverages, to the
extent that the proceeds of the service | ||||||
6 | charge are in fact turned over as
tips or as a substitute for | ||||||
7 | tips to the employees who participate directly
in preparing, | ||||||
8 | serving, hosting or cleaning up the food or beverage function
| ||||||
9 | with respect to which the service charge is imposed.
| ||||||
10 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
11 | is prohibited by federal law from charging tax to the | ||||||
12 | purchaser.
| ||||||
13 | (17) Tangible personal property sold to a common carrier by | ||||||
14 | rail or
motor that
receives the physical possession of the | ||||||
15 | property in Illinois and that
transports the property, or | ||||||
16 | shares with another common carrier in the
transportation of the | ||||||
17 | property, out of Illinois on a standard uniform bill
of lading | ||||||
18 | showing the seller of the property as the shipper or consignor | ||||||
19 | of
the property to a destination outside Illinois, for use | ||||||
20 | outside Illinois.
| ||||||
21 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
22 | coinage
issued by the State of Illinois, the government of the | ||||||
23 | United States of
America, or the government of any foreign | ||||||
24 | country, and bullion.
| ||||||
25 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
26 | and production
equipment, including
(i) rigs and parts of rigs, |
| |||||||
| |||||||
1 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
2 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
3 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
4 | individual replacement part for oil field exploration,
| ||||||
5 | drilling, and production equipment, and (vi) machinery and | ||||||
6 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
7 | required to be registered under the Illinois
Vehicle Code.
| ||||||
8 | (20) Photoprocessing machinery and equipment, including | ||||||
9 | repair and
replacement parts, both new and used, including that | ||||||
10 | manufactured on
special order, certified by the purchaser to be | ||||||
11 | used primarily for
photoprocessing, and including | ||||||
12 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
13 | (21) Until December 31, 2022, coal Coal and aggregate | ||||||
14 | exploration, mining, off-highway hauling,
processing,
| ||||||
15 | maintenance, and reclamation equipment, including
replacement | ||||||
16 | parts and equipment, and including
equipment purchased for | ||||||
17 | lease, but excluding motor vehicles required to be
registered | ||||||
18 | under the Illinois Vehicle Code. The changes made to this | ||||||
19 | Section by Public Act 97-767 apply on and after July 1, 2003, | ||||||
20 | but no claim for credit or refund is allowed on or after August | ||||||
21 | 16, 2013 (the effective date of Public Act 98-456)
for such | ||||||
22 | taxes paid during the period beginning July 1, 2003 and ending | ||||||
23 | on August 16, 2013 (the effective date of Public Act 98-456).
| ||||||
24 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
25 | to or used by an air carrier,
certified by the carrier to be | ||||||
26 | used for consumption, shipment, or storage
in the conduct of |
| |||||||
| |||||||
1 | its business as an air common carrier, for a flight
destined | ||||||
2 | for or returning from a location or locations
outside the | ||||||
3 | United States without regard to previous or subsequent domestic
| ||||||
4 | stopovers.
| ||||||
5 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
6 | or used by an air carrier, certified by the carrier to be used | ||||||
7 | for consumption, shipment, or storage in the conduct of its | ||||||
8 | business as an air common carrier, for a flight that (i) is | ||||||
9 | engaged in foreign trade or is engaged in trade between the | ||||||
10 | United States and any of its possessions and (ii) transports at | ||||||
11 | least one individual or package for hire from the city of | ||||||
12 | origination to the city of final destination on the same | ||||||
13 | aircraft, without regard to a change in the flight number of | ||||||
14 | that aircraft. | ||||||
15 | (23) A transaction in which the purchase order is received | ||||||
16 | by a florist
who is located outside Illinois, but who has a | ||||||
17 | florist located in Illinois
deliver the property to the | ||||||
18 | purchaser or the purchaser's donee in Illinois.
| ||||||
19 | (24) Fuel consumed or used in the operation of ships, | ||||||
20 | barges, or vessels
that are used primarily in or for the | ||||||
21 | transportation of property or the
conveyance of persons for | ||||||
22 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
23 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
24 | it is afloat upon that bordering river.
| ||||||
25 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
26 | motor vehicle sold in this State to a nonresident even though |
| |||||||
| |||||||
1 | the
motor vehicle is delivered to the nonresident in this | ||||||
2 | State, if the motor
vehicle is not to be titled in this State, | ||||||
3 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
4 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
5 | the nonresident purchaser has vehicle registration
plates to | ||||||
6 | transfer to the motor vehicle upon returning to his or her home
| ||||||
7 | state. The issuance of the drive-away permit or having
the
| ||||||
8 | out-of-state registration plates to be transferred is prima | ||||||
9 | facie evidence
that the motor vehicle will not be titled in | ||||||
10 | this State.
| ||||||
11 | (25-5) The exemption under item (25) does not apply if the | ||||||
12 | state in which the motor vehicle will be titled does not allow | ||||||
13 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
14 | in that state to an Illinois resident but titled in Illinois. | ||||||
15 | The tax collected under this Act on the sale of a motor vehicle | ||||||
16 | in this State to a resident of another state that does not | ||||||
17 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
18 | to the state's rate of tax on taxable property in the state in | ||||||
19 | which the purchaser is a resident, except that the tax shall | ||||||
20 | not exceed the tax that would otherwise be imposed under this | ||||||
21 | Act. At the time of the sale, the purchaser shall execute a | ||||||
22 | statement, signed under penalty of perjury, of his or her | ||||||
23 | intent to title the vehicle in the state in which the purchaser | ||||||
24 | is a resident within 30 days after the sale and of the fact of | ||||||
25 | the payment to the State of Illinois of tax in an amount | ||||||
26 | equivalent to the state's rate of tax on taxable property in |
| |||||||
| |||||||
1 | his or her state of residence and shall submit the statement to | ||||||
2 | the appropriate tax collection agency in his or her state of | ||||||
3 | residence. In addition, the retailer must retain a signed copy | ||||||
4 | of the statement in his or her records. Nothing in this item | ||||||
5 | shall be construed to require the removal of the vehicle from | ||||||
6 | this state following the filing of an intent to title the | ||||||
7 | vehicle in the purchaser's state of residence if the purchaser | ||||||
8 | titles the vehicle in his or her state of residence within 30 | ||||||
9 | days after the date of sale. The tax collected under this Act | ||||||
10 | in accordance with this item (25-5) shall be proportionately | ||||||
11 | distributed as if the tax were collected at the 6.25% general | ||||||
12 | rate imposed under this Act.
| ||||||
13 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
14 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
15 | the Illinois Aeronautics Act, if all of the following | ||||||
16 | conditions are met: | ||||||
17 | (1) the aircraft leaves this State within 15 days after | ||||||
18 | the later of either the issuance of the final billing for | ||||||
19 | the sale of the aircraft, or the authorized approval for | ||||||
20 | return to service, completion of the maintenance record | ||||||
21 | entry, and completion of the test flight and ground test | ||||||
22 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
23 | (2) the aircraft is not based or registered in this | ||||||
24 | State after the sale of the aircraft; and | ||||||
25 | (3) the seller retains in his or her books and records | ||||||
26 | and provides to the Department a signed and dated |
| |||||||
| |||||||
1 | certification from the purchaser, on a form prescribed by | ||||||
2 | the Department, certifying that the requirements of this | ||||||
3 | item (25-7) are met. The certificate must also include the | ||||||
4 | name and address of the purchaser, the address of the | ||||||
5 | location where the aircraft is to be titled or registered, | ||||||
6 | the address of the primary physical location of the | ||||||
7 | aircraft, and other information that the Department may | ||||||
8 | reasonably require. | ||||||
9 | For purposes of this item (25-7): | ||||||
10 | "Based in this State" means hangared, stored, or otherwise | ||||||
11 | used, excluding post-sale customizations as defined in this | ||||||
12 | Section, for 10 or more days in each 12-month period | ||||||
13 | immediately following the date of the sale of the aircraft. | ||||||
14 | "Registered in this State" means an aircraft registered | ||||||
15 | with the Department of Transportation, Aeronautics Division, | ||||||
16 | or titled or registered with the Federal Aviation | ||||||
17 | Administration to an address located in this State. | ||||||
18 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
19 | Section 2-70.
| ||||||
20 | (26) Semen used for artificial insemination of livestock | ||||||
21 | for direct
agricultural production.
| ||||||
22 | (27) Horses, or interests in horses, registered with and | ||||||
23 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
24 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
25 | Horse Association, United States
Trotting Association, or | ||||||
26 | Jockey Club, as appropriate, used for
purposes of breeding or |
| |||||||
| |||||||
1 | racing for prizes. This item (27) is exempt from the provisions | ||||||
2 | of Section 2-70, and the exemption provided for under this item | ||||||
3 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
4 | claim for credit or refund is allowed on or after January 1, | ||||||
5 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
6 | paid during the period beginning May 30, 2000 and ending on | ||||||
7 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
8 | (28) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients sold to a lessor | ||||||
11 | who leases the
equipment, under a lease of one year or longer | ||||||
12 | executed or in effect at the
time of the purchase, to a
| ||||||
13 | hospital
that has been issued an active tax exemption | ||||||
14 | identification number by the
Department under Section 1g of | ||||||
15 | this Act.
| ||||||
16 | (29) Personal property sold to a lessor who leases the
| ||||||
17 | property, under a
lease of one year or longer executed or in | ||||||
18 | effect at the time of the purchase,
to a governmental body
that | ||||||
19 | has been issued an active tax exemption identification number | ||||||
20 | by the
Department under Section 1g of this Act.
| ||||||
21 | (30) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995
and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004,
personal property that is
donated for | ||||||
24 | disaster relief to be used in a State or federally declared
| ||||||
25 | disaster area in Illinois or bordering Illinois by a | ||||||
26 | manufacturer or retailer
that is registered in this State to a |
| |||||||
| |||||||
1 | corporation, society, association,
foundation, or institution | ||||||
2 | that has been issued a sales tax exemption
identification | ||||||
3 | number by the Department that assists victims of the disaster
| ||||||
4 | who reside within the declared disaster area.
| ||||||
5 | (31) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995 and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004, personal
property that is used in the | ||||||
8 | performance of infrastructure repairs in this
State, including | ||||||
9 | but not limited to municipal roads and streets, access roads,
| ||||||
10 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
11 | line extensions,
water distribution and purification | ||||||
12 | facilities, storm water drainage and
retention facilities, and | ||||||
13 | sewage treatment facilities, resulting from a State
or | ||||||
14 | federally declared disaster in Illinois or bordering Illinois | ||||||
15 | when such
repairs are initiated on facilities located in the | ||||||
16 | declared disaster area
within 6 months after the disaster.
| ||||||
17 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
18 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
19 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
20 | provisions
of
Section 2-70.
| ||||||
21 | (33) A motor vehicle, as that term is defined in Section | ||||||
22 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
23 | corporation, limited liability
company, society, association, | ||||||
24 | foundation, or institution that is determined by
the Department | ||||||
25 | to be organized and operated exclusively for educational
| ||||||
26 | purposes. For purposes of this exemption, "a corporation, |
| |||||||
| |||||||
1 | limited liability
company, society, association, foundation, | ||||||
2 | or institution organized and
operated
exclusively for | ||||||
3 | educational purposes" means all tax-supported public schools,
| ||||||
4 | private schools that offer systematic instruction in useful | ||||||
5 | branches of
learning by methods common to public schools and | ||||||
6 | that compare favorably in
their scope and intensity with the | ||||||
7 | course of study presented in tax-supported
schools, and | ||||||
8 | vocational or technical schools or institutes organized and
| ||||||
9 | operated exclusively to provide a course of study of not less | ||||||
10 | than 6 weeks
duration and designed to prepare individuals to | ||||||
11 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
12 | industrial, business, or commercial
occupation.
| ||||||
13 | (34) Beginning January 1, 2000, personal property, | ||||||
14 | including food, purchased
through fundraising events for the | ||||||
15 | benefit of a public or private elementary or
secondary school, | ||||||
16 | a group of those schools, or one or more school districts if
| ||||||
17 | the events are sponsored by an entity recognized by the school | ||||||
18 | district that
consists primarily of volunteers and includes | ||||||
19 | parents and teachers of the
school children. This paragraph | ||||||
20 | does not apply to fundraising events (i) for
the benefit of | ||||||
21 | private home instruction or (ii) for which the fundraising
| ||||||
22 | entity purchases the personal property sold at the events from | ||||||
23 | another
individual or entity that sold the property for the | ||||||
24 | purpose of resale by the
fundraising entity and that profits | ||||||
25 | from the sale to the fundraising entity.
This paragraph is | ||||||
26 | exempt from the provisions of Section 2-70.
|
| |||||||
| |||||||
1 | (35) Beginning January 1, 2000 and through December 31, | ||||||
2 | 2001, new or used
automatic vending machines that prepare and | ||||||
3 | serve hot food and beverages,
including coffee, soup, and other | ||||||
4 | items, and replacement parts for these
machines. Beginning | ||||||
5 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
6 | for machines used in
commercial, coin-operated amusement and | ||||||
7 | vending business if a use or occupation
tax is paid on the | ||||||
8 | gross receipts derived from the use of the commercial,
| ||||||
9 | coin-operated amusement and vending machines. This paragraph | ||||||
10 | is exempt from
the provisions of Section 2-70.
| ||||||
11 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
12 | food for human consumption that is to be consumed off
the | ||||||
13 | premises where it is sold (other than alcoholic beverages, soft | ||||||
14 | drinks,
and food that has been prepared for immediate | ||||||
15 | consumption) and prescription
and nonprescription medicines, | ||||||
16 | drugs, medical appliances, and insulin, urine
testing | ||||||
17 | materials, syringes, and needles used by diabetics, for human | ||||||
18 | use, when
purchased for use by a person receiving medical | ||||||
19 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
20 | resides in a licensed long-term care facility,
as defined in | ||||||
21 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
22 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
23 | Mental Health Rehabilitation Act of 2013.
| ||||||
24 | (36) Beginning August 2, 2001, computers and | ||||||
25 | communications equipment
utilized for any hospital purpose and | ||||||
26 | equipment used in the diagnosis,
analysis, or treatment of |
| |||||||
| |||||||
1 | hospital patients sold to a lessor who leases the
equipment, | ||||||
2 | under a lease of one year or longer executed or in effect at | ||||||
3 | the
time of the purchase, to a hospital that has been issued an | ||||||
4 | active tax
exemption identification number by the Department | ||||||
5 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
6 | provisions of Section 2-70.
| ||||||
7 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
8 | lessor who
leases the property, under a lease of one year or | ||||||
9 | longer executed or in effect
at the time of the purchase, to a | ||||||
10 | governmental body that has been issued an
active tax exemption | ||||||
11 | identification number by the Department under Section 1g
of | ||||||
12 | this Act. This paragraph is exempt from the provisions of | ||||||
13 | Section 2-70.
| ||||||
14 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
15 | 2016, tangible personal property purchased
from an Illinois | ||||||
16 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
17 | activities in Illinois who will, upon receipt of the property | ||||||
18 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
19 | the purpose of subsequently
transporting it outside this State | ||||||
20 | for use or consumption thereafter solely
outside this State or | ||||||
21 | (ii) for the purpose of being processed, fabricated, or
| ||||||
22 | manufactured into, attached to, or incorporated into other | ||||||
23 | tangible personal
property to be transported outside this State | ||||||
24 | and thereafter used or consumed
solely outside this State. The | ||||||
25 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
26 | accordance with the Illinois Administrative Procedure Act, |
| |||||||
| |||||||
1 | issue a
permit to any taxpayer in good standing with the | ||||||
2 | Department who is eligible for
the exemption under this | ||||||
3 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
4 | shall authorize the holder, to the extent and
in the manner | ||||||
5 | specified in the rules adopted under this Act, to purchase
| ||||||
6 | tangible personal property from a retailer exempt from the | ||||||
7 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
8 | necessary books and records to
substantiate the use and | ||||||
9 | consumption of all such tangible personal property
outside of | ||||||
10 | the State of Illinois.
| ||||||
11 | (39) Beginning January 1, 2008, tangible personal property | ||||||
12 | used in the construction or maintenance of a community water | ||||||
13 | supply, as defined under Section 3.145 of the Environmental | ||||||
14 | Protection Act, that is operated by a not-for-profit | ||||||
15 | corporation that holds a valid water supply permit issued under | ||||||
16 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
17 | exempt from the provisions of Section 2-70.
| ||||||
18 | (40) Beginning January 1, 2010, materials, parts, | ||||||
19 | equipment, components, and furnishings incorporated into or | ||||||
20 | upon an aircraft as part of the modification, refurbishment, | ||||||
21 | completion, replacement, repair, or maintenance of the | ||||||
22 | aircraft. This exemption includes consumable supplies used in | ||||||
23 | the modification, refurbishment, completion, replacement, | ||||||
24 | repair, and maintenance of aircraft, but excludes any | ||||||
25 | materials, parts, equipment, components, and consumable | ||||||
26 | supplies used in the modification, replacement, repair, and |
| |||||||
| |||||||
1 | maintenance of aircraft engines or power plants, whether such | ||||||
2 | engines or power plants are installed or uninstalled upon any | ||||||
3 | such aircraft. "Consumable supplies" include, but are not | ||||||
4 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
5 | lubricants, cleaning solution, latex gloves, and protective | ||||||
6 | films. This exemption applies only to the sale of qualifying | ||||||
7 | tangible personal property to persons who modify, refurbish, | ||||||
8 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
9 | Air Agency Certificate and are empowered to operate an approved | ||||||
10 | repair station by the Federal Aviation Administration, (ii) | ||||||
11 | have a Class IV Rating, and (iii) conduct operations in | ||||||
12 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
13 | The exemption does not include aircraft operated by a | ||||||
14 | commercial air carrier providing scheduled passenger air | ||||||
15 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
16 | of the Federal Aviation Regulations. The changes made to this | ||||||
17 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
18 | law. | ||||||
19 | (41) Tangible personal property sold to a | ||||||
20 | public-facilities corporation, as described in Section | ||||||
21 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
22 | constructing or furnishing a municipal convention hall, but | ||||||
23 | only if the legal title to the municipal convention hall is | ||||||
24 | transferred to the municipality without any further | ||||||
25 | consideration by or on behalf of the municipality at the time | ||||||
26 | of the completion of the municipal convention hall or upon the |
| |||||||
| |||||||
1 | retirement or redemption of any bonds or other debt instruments | ||||||
2 | issued by the public-facilities corporation in connection with | ||||||
3 | the development of the municipal convention hall. This | ||||||
4 | exemption includes existing public-facilities corporations as | ||||||
5 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
6 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
7 | (42) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
8 | and menstrual cups. | ||||||
9 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
10 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
11 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
12 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
13 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||||||
14 | Sec. 2a. It is unlawful for any person to engage in the | ||||||
15 | business of
selling tangible personal property at retail in | ||||||
16 | this State without a
certificate of registration from the | ||||||
17 | Department. Application
for a certificate of registration | ||||||
18 | shall be made to the Department upon
forms furnished by it. | ||||||
19 | Each such application shall be signed and verified
and shall | ||||||
20 | state: (1) the name and social security number of the
| ||||||
21 | applicant; (2) the address of his principal place
of business; | ||||||
22 | (3) the address of the principal place of business from which
| ||||||
23 | he engages in the business of selling tangible personal | ||||||
24 | property at retail
in this State and the addresses of all other | ||||||
25 | places of business, if any
(enumerating such addresses, if any, |
| |||||||
| |||||||
1 | in a separate list attached to and
made a part of the | ||||||
2 | application), from which he engages in the business of
selling | ||||||
3 | tangible personal property at retail in this State; (4)
the
| ||||||
4 | name and address of the person or persons who will be | ||||||
5 | responsible for
filing returns and payment of taxes due under | ||||||
6 | this Act; (5) in the case of a publicly traded corporation, the | ||||||
7 | name and title of the Chief Financial Officer, Chief Operating | ||||||
8 | Officer, and any other officer or employee with responsibility | ||||||
9 | for preparing tax returns under this Act, along with the last 4 | ||||||
10 | digits of each of their social security numbers, and, in the
| ||||||
11 | case of
all other corporations, the name, title, and social | ||||||
12 | security number of
each corporate officer; (6) in the case of a | ||||||
13 | limited liability
company, the
name, social security number, | ||||||
14 | and FEIN number of
each
manager and member; and (7) such other | ||||||
15 | information
as the Department may reasonably require. The | ||||||
16 | application shall contain
an acceptance of responsibility | ||||||
17 | signed by the person or persons who will be
responsible for | ||||||
18 | filing returns and payment of the taxes due under this
Act. If | ||||||
19 | the applicant will sell tangible personal property at retail
| ||||||
20 | through vending machines, his application to register shall | ||||||
21 | indicate the
number of vending machines to be so operated. If | ||||||
22 | requested by the Department at any time, that person shall | ||||||
23 | verify the total number of vending machines he or she uses in | ||||||
24 | his or her business of selling tangible personal property at | ||||||
25 | retail. | ||||||
26 | The Department may deny a certificate of registration to |
| |||||||
| |||||||
1 | any applicant
if a person who is named as the owner, a partner, | ||||||
2 | a manager or member of a limited liability
company, or a | ||||||
3 | corporate officer of the applicant on the application for the | ||||||
4 | certificate of registration is or
has been named as the owner, | ||||||
5 | a partner, a manager or member of a limited
liability company, | ||||||
6 | or a corporate officer on the application for the certificate | ||||||
7 | of registration of another retailer
that is in default for | ||||||
8 | moneys due under this Act or any other tax or fee Act | ||||||
9 | administered by the Department. For purposes of this paragraph | ||||||
10 | only, in determining whether a person is in default for moneys | ||||||
11 | due, the Department shall include only amounts established as a | ||||||
12 | final liability within the 20 years prior to the date of the | ||||||
13 | Department's notice of denial of a certificate of registration. | ||||||
14 | The Department may require an applicant for a certificate | ||||||
15 | of registration hereunder to, at
the time of filing such | ||||||
16 | application, furnish a bond from a surety company
authorized to | ||||||
17 | do business in the State of Illinois, or an irrevocable
bank | ||||||
18 | letter of credit or a bond signed by 2
personal sureties who | ||||||
19 | have filed, with the Department, sworn statements
disclosing | ||||||
20 | net assets equal to at least 3 times the amount of the bond to
| ||||||
21 | be required of such applicant, or a bond secured by an | ||||||
22 | assignment of a bank
account or certificate of deposit, stocks | ||||||
23 | or bonds, conditioned upon the
applicant paying to the State of | ||||||
24 | Illinois all moneys becoming due under
this Act and under any | ||||||
25 | other State tax law or municipal or county tax
ordinance or | ||||||
26 | resolution under which the certificate of registration that is
|
| |||||||
| |||||||
1 | issued to the applicant under this Act will permit the | ||||||
2 | applicant to engage
in business without registering separately | ||||||
3 | under such other law, ordinance
or resolution. In making a | ||||||
4 | determination as to whether to require a bond or other | ||||||
5 | security, the Department shall take into consideration whether | ||||||
6 | the owner, any partner, any manager or member of a limited | ||||||
7 | liability company, or a corporate officer of the applicant is | ||||||
8 | or has been the owner, a partner, a manager or member of a | ||||||
9 | limited liability company, or a corporate officer of another | ||||||
10 | retailer that is in default for moneys due under this Act or | ||||||
11 | any other tax or fee Act administered by the Department; and | ||||||
12 | whether the owner, any partner, any manager or member of a | ||||||
13 | limited liability company, or a corporate officer of the | ||||||
14 | applicant is or has been the owner, a partner, a manager or | ||||||
15 | member of a limited liability company, or a corporate officer | ||||||
16 | of another retailer whose certificate of registration has been | ||||||
17 | revoked within the previous 5 years under this Act or any other | ||||||
18 | tax or fee Act administered by the Department. If a bond or | ||||||
19 | other security is required, the Department shall fix the amount | ||||||
20 | of the bond or other security, taking into consideration the | ||||||
21 | amount of money expected to become due from the applicant under | ||||||
22 | this Act and under any other State tax law or municipal or | ||||||
23 | county tax ordinance or resolution under which the certificate | ||||||
24 | of registration that is issued to the applicant under this Act | ||||||
25 | will permit the applicant to engage in business without | ||||||
26 | registering separately under such other law, ordinance, or |
| |||||||
| |||||||
1 | resolution. The amount of security required by
the Department | ||||||
2 | shall be such as, in its opinion, will protect the State of
| ||||||
3 | Illinois against failure to pay the amount which may become due | ||||||
4 | from the
applicant under this Act and under any other State tax | ||||||
5 | law or municipal or
county tax ordinance or resolution under | ||||||
6 | which the certificate of
registration that is issued to the | ||||||
7 | applicant under this Act will permit the
applicant to engage in | ||||||
8 | business without registering separately under such
other law, | ||||||
9 | ordinance or resolution, but the amount of the security | ||||||
10 | required
by the Department shall not exceed three times the | ||||||
11 | amount of the
applicant's average monthly tax liability, or | ||||||
12 | $50,000.00, whichever amount
is lower. | ||||||
13 | No certificate of registration under this Act shall be | ||||||
14 | issued by the
Department until the applicant provides the | ||||||
15 | Department with satisfactory
security, if required, as herein | ||||||
16 | provided for. | ||||||
17 | Upon receipt of the application for certificate of | ||||||
18 | registration in
proper form, and upon approval by the | ||||||
19 | Department of the security furnished
by the applicant, if | ||||||
20 | required, the Department shall issue to such applicant a
| ||||||
21 | certificate of registration which shall permit the person to | ||||||
22 | whom it is
issued to engage in the business of selling tangible | ||||||
23 | personal property at
retail in this State. The certificate of | ||||||
24 | registration shall be
conspicuously displayed at the place of | ||||||
25 | business which the person so
registered states in his | ||||||
26 | application to be the principal place of business
from which he |
| |||||||
| |||||||
1 | engages in the business of selling tangible personal property
| ||||||
2 | at retail in this State. | ||||||
3 | No certificate of registration issued to a taxpayer who | ||||||
4 | files returns
required by this Act on a monthly basis shall be | ||||||
5 | valid after the expiration
of 5 years from the date of its | ||||||
6 | issuance or last renewal. The expiration
date of a | ||||||
7 | sub-certificate of registration shall be that of the | ||||||
8 | certificate
of registration to which the sub-certificate | ||||||
9 | relates. A certificate of
registration shall automatically be | ||||||
10 | renewed, subject to revocation as
provided by this Act, for an | ||||||
11 | additional 5 years from the date of its
expiration unless | ||||||
12 | otherwise notified by the Department as provided by this
| ||||||
13 | paragraph. Where a taxpayer to whom a certificate of | ||||||
14 | registration is
issued under this Act is in default to the | ||||||
15 | State of Illinois for delinquent
returns or for moneys due
| ||||||
16 | under this Act or any other State tax law or municipal or | ||||||
17 | county ordinance
administered or enforced by the Department, | ||||||
18 | the Department shall, not less
than 60 days before the | ||||||
19 | expiration date of such certificate of
registration, give | ||||||
20 | notice to the taxpayer to whom the certificate was
issued of | ||||||
21 | the account period of the delinquent returns, the amount of
| ||||||
22 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
23 | that the certificate of registration shall not be
automatically | ||||||
24 | renewed upon its expiration date unless the taxpayer, on or
| ||||||
25 | before the date of expiration, has filed and paid the | ||||||
26 | delinquent returns or
paid the defaulted amount in full. A
|
| |||||||
| |||||||
1 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
2 | applicant for
renewal. The Department shall promulgate | ||||||
3 | regulations establishing
procedures for taxpayers who file | ||||||
4 | returns on a monthly basis but desire and
qualify to change to | ||||||
5 | a quarterly or yearly filing basis and will no longer
be | ||||||
6 | subject to renewal under this Section, and for taxpayers who | ||||||
7 | file
returns on a yearly or quarterly basis but who desire or | ||||||
8 | are required to
change to a monthly filing basis and will be | ||||||
9 | subject to renewal under
this Section. | ||||||
10 | The Department may in its discretion approve renewal by an | ||||||
11 | applicant
who is in default if, at the time of application for | ||||||
12 | renewal, the applicant
files all of the delinquent returns or | ||||||
13 | pays to the Department such
percentage of the defaulted amount | ||||||
14 | as may be
determined by the Department and agrees in writing to | ||||||
15 | waive all limitations
upon the Department for collection of the | ||||||
16 | remaining defaulted amount to the
Department over a period not | ||||||
17 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
18 | however, no renewal application submitted by an applicant
who | ||||||
19 | is in default shall be approved if the immediately preceding | ||||||
20 | renewal by
the applicant was conditioned upon the installment | ||||||
21 | payment
agreement described in this Section. The payment | ||||||
22 | agreement herein provided
for shall be in addition to and not | ||||||
23 | in lieu of the security that may be required by
this Section of | ||||||
24 | a taxpayer who is no longer considered a prior continuous
| ||||||
25 | compliance taxpayer. The execution of the payment agreement as | ||||||
26 | provided in
this Act shall not toll the accrual of interest at |
| |||||||
| |||||||
1 | the statutory rate. | ||||||
2 | The Department may suspend a certificate of registration if | ||||||
3 | the Department finds that the person to whom the certificate of | ||||||
4 | registration has been issued knowingly sold contraband | ||||||
5 | cigarettes. | ||||||
6 | A certificate of registration issued under this Act more | ||||||
7 | than 5 years
before the effective date of this amendatory Act | ||||||
8 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
9 | of this Section on the next
anniversary of the date of issuance | ||||||
10 | of such certificate which occurs more
than 6 months after the | ||||||
11 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
12 | registration issued less than 5 years before the effective
date | ||||||
13 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
14 | the
renewal provisions of this Section on the 5th anniversary | ||||||
15 | of the issuance
of the certificate. | ||||||
16 | If the person so registered states that he operates other | ||||||
17 | places of
business from which he engages in the business of | ||||||
18 | selling tangible personal
property at retail in this State, the | ||||||
19 | Department shall furnish him with a
sub-certificate of | ||||||
20 | registration for each such place of business, and the
applicant | ||||||
21 | shall display the appropriate sub-certificate of registration | ||||||
22 | at
each such place of business. All sub-certificates of | ||||||
23 | registration shall
bear the same registration number as that | ||||||
24 | appearing upon the certificate of
registration to which such | ||||||
25 | sub-certificates relate. | ||||||
26 | If the applicant will sell tangible personal property at |
| |||||||
| |||||||
1 | retail through
vending machines, the Department shall furnish | ||||||
2 | him with a sub-certificate
of registration for each such | ||||||
3 | vending machine, and the applicant shall
display the | ||||||
4 | appropriate sub-certificate of registration on each such
| ||||||
5 | vending machine by attaching the sub-certificate of | ||||||
6 | registration to a
conspicuous part of such vending machine. If | ||||||
7 | a person who is registered to sell tangible personal property | ||||||
8 | at retail through vending machines adds an additional vending | ||||||
9 | machine or additional vending machines to the number of vending | ||||||
10 | machines he or she uses in his or her business of selling | ||||||
11 | tangible personal property at retail, he or she shall notify | ||||||
12 | the Department, on a form prescribed by the Department, to | ||||||
13 | request an additional sub-certificate or additional | ||||||
14 | sub-certificates of registration, as applicable. With each | ||||||
15 | such request, the applicant shall report the number of | ||||||
16 | sub-certificates of registration he or she is requesting as | ||||||
17 | well as the total number of vending machines from which he or | ||||||
18 | she makes retail sales. | ||||||
19 | Where the same person engages in 2 or more businesses of | ||||||
20 | selling
tangible personal property at retail in this State, | ||||||
21 | which businesses are
substantially different in character or | ||||||
22 | engaged in under different trade
names or engaged in under | ||||||
23 | other substantially dissimilar circumstances (so
that it is | ||||||
24 | more practicable, from an accounting, auditing or bookkeeping
| ||||||
25 | standpoint, for such businesses to be separately registered), | ||||||
26 | the
Department may require or permit such person (subject to |
| |||||||
| |||||||
1 | the same
requirements concerning the furnishing of security as | ||||||
2 | those that are
provided for hereinbefore in this Section as to | ||||||
3 | each application for a
certificate of registration) to apply | ||||||
4 | for and obtain a separate certificate
of registration for each | ||||||
5 | such business or for any of such businesses, under
a single | ||||||
6 | certificate of registration supplemented by related
| ||||||
7 | sub-certificates of registration. | ||||||
8 | Any person who is registered under the "Retailers' | ||||||
9 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
10 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
11 | continuous 3-year period part of which passed
immediately | ||||||
12 | before and the remainder of which passes immediately after
| ||||||
13 | March 8, 1963, has been so registered continuously and who is | ||||||
14 | determined by
the Department not to have been either delinquent | ||||||
15 | or deficient in the
payment of tax liability during that period | ||||||
16 | under this Act or under any
other State tax law or municipal or | ||||||
17 | county tax ordinance or resolution
under which the certificate | ||||||
18 | of registration that is issued to the
registrant under this Act | ||||||
19 | will permit the registrant to engage in business
without | ||||||
20 | registering separately under such other law, ordinance or
| ||||||
21 | resolution, shall be considered to be a Prior Continuous | ||||||
22 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
23 | the Department,
faithfully and continuously complied with the | ||||||
24 | condition of his bond or
other security under the provisions of | ||||||
25 | this Act for a period of 3
consecutive years shall be | ||||||
26 | considered to be a Prior Continuous Compliance
taxpayer. |
| |||||||
| |||||||
1 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
2 | from all
requirements under this Act concerning the furnishing | ||||||
3 | of a bond or other security as a
condition precedent to his | ||||||
4 | being authorized to engage in the business of
selling tangible | ||||||
5 | personal property at retail in this State. This exemption
shall | ||||||
6 | continue for each such taxpayer until such time as he may be
| ||||||
7 | determined by the Department to be delinquent in the filing of | ||||||
8 | any returns,
or is determined by the Department (either through | ||||||
9 | the Department's
issuance of a final assessment which has | ||||||
10 | become final under the Act, or by
the taxpayer's filing of a | ||||||
11 | return which admits tax that is not paid to be
due) to be | ||||||
12 | delinquent or deficient in the paying of any tax under this Act
| ||||||
13 | or under any other State tax law or municipal or county tax | ||||||
14 | ordinance or
resolution under which the certificate of | ||||||
15 | registration that is issued to
the registrant under this Act | ||||||
16 | will permit the registrant to engage in
business without | ||||||
17 | registering separately under such other law, ordinance or
| ||||||
18 | resolution, at which time that taxpayer shall become subject to | ||||||
19 | all the
financial responsibility requirements of this Act and, | ||||||
20 | as a condition of
being allowed to continue to engage in the | ||||||
21 | business of selling tangible
personal property at retail, may | ||||||
22 | be required to post bond or other
acceptable security with the | ||||||
23 | Department covering liability which such
taxpayer may | ||||||
24 | thereafter incur. Any taxpayer who fails to pay an admitted or
| ||||||
25 | established liability under this Act may also be required to | ||||||
26 | post bond or
other acceptable security with this Department |
| |||||||
| |||||||
1 | guaranteeing the payment of
such admitted or established | ||||||
2 | liability. | ||||||
3 | No certificate of registration shall be issued to any | ||||||
4 | person who is in
default to the State of Illinois for moneys | ||||||
5 | due under this Act or under any
other State tax law or | ||||||
6 | municipal or county tax ordinance or resolution
under which the | ||||||
7 | certificate of registration that is issued to the applicant
| ||||||
8 | under this Act will permit the applicant to engage in business | ||||||
9 | without
registering separately under such other law, ordinance | ||||||
10 | or resolution. | ||||||
11 | Any person aggrieved by any decision of the Department | ||||||
12 | under this
Section may, within 20 days after notice of such | ||||||
13 | decision, protest and
request a hearing, whereupon the | ||||||
14 | Department shall give notice to such
person of the time and | ||||||
15 | place fixed for such hearing and shall hold a
hearing in | ||||||
16 | conformity with the provisions of this Act and then issue its
| ||||||
17 | final administrative decision in the matter to such person. In | ||||||
18 | the absence
of such a protest within 20 days, the Department's | ||||||
19 | decision shall become
final without any further determination | ||||||
20 | being made or notice given. | ||||||
21 | With respect to security other than bonds (upon which the | ||||||
22 | Department may
sue in the event of a forfeiture), if the | ||||||
23 | taxpayer fails to pay, when due,
any amount whose payment such | ||||||
24 | security guarantees, the Department shall,
after such | ||||||
25 | liability is admitted by the taxpayer or established by the
| ||||||
26 | Department through the issuance of a final assessment that has |
| |||||||
| |||||||
1 | become final
under the law, convert the security which that | ||||||
2 | taxpayer has furnished into
money for the State, after first | ||||||
3 | giving the taxpayer at least 10 days'
written notice, by | ||||||
4 | registered or certified mail, to pay the liability or
forfeit | ||||||
5 | such security to the Department. If the security consists of | ||||||
6 | stocks
or bonds or other securities which are listed on a | ||||||
7 | public exchange, the
Department shall sell such securities | ||||||
8 | through such public exchange. If
the security consists of an | ||||||
9 | irrevocable bank letter of credit, the
Department shall convert | ||||||
10 | the security in the manner provided for in the
Uniform | ||||||
11 | Commercial Code. If the security consists of a bank certificate | ||||||
12 | of
deposit, the Department shall convert the security into | ||||||
13 | money by demanding
and collecting the amount of such bank | ||||||
14 | certificate of deposit from the bank
which issued such | ||||||
15 | certificate. If the security consists of a type of stocks
or | ||||||
16 | other securities which are not listed on a public exchange, the
| ||||||
17 | Department shall sell such security to the highest and best | ||||||
18 | bidder after
giving at least 10 days' notice of the date, time | ||||||
19 | and place of the intended
sale by publication in the "State | ||||||
20 | Official Newspaper". If the Department
realizes more than the | ||||||
21 | amount of such liability from the security, plus the
expenses | ||||||
22 | incurred by the Department in converting the security into | ||||||
23 | money,
the Department shall pay such excess to the taxpayer who | ||||||
24 | furnished such
security, and the balance shall be paid into the | ||||||
25 | State Treasury. | ||||||
26 | The Department shall discharge any surety and shall release |
| |||||||
| |||||||
1 | and return
any security deposited, assigned, pledged or | ||||||
2 | otherwise provided to it by
a taxpayer under this Section | ||||||
3 | within 30 days after: | ||||||
4 | (1) such taxpayer becomes a Prior Continuous | ||||||
5 | Compliance taxpayer; or | ||||||
6 | (2) such taxpayer has ceased to collect receipts on | ||||||
7 | which he is required
to remit tax to the Department, has | ||||||
8 | filed a final tax return, and has paid
to the Department an | ||||||
9 | amount sufficient to discharge his remaining tax
| ||||||
10 | liability, as determined by the Department, under this Act | ||||||
11 | and under every
other State tax law or municipal or county | ||||||
12 | tax ordinance or resolution
under which the certificate of | ||||||
13 | registration issued under this Act permits
the registrant | ||||||
14 | to engage in business without registering separately under
| ||||||
15 | such other law, ordinance or resolution. The Department | ||||||
16 | shall make a final
determination of the taxpayer's | ||||||
17 | outstanding tax liability as expeditiously
as possible | ||||||
18 | after his final tax return has been filed; if the | ||||||
19 | Department
cannot make such final determination within 45 | ||||||
20 | days after receiving the
final tax return, within such | ||||||
21 | period it shall so notify the taxpayer,
stating its reasons | ||||||
22 | therefor. | ||||||
23 | (Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583, | ||||||
24 | eff. 1-1-14; 98-756, eff. 7-16-14; 98-974, eff. 1-1-15 .)
| ||||||
25 | ARTICLE 25. REVENUE; EXCESS PAYMENTS |
| |||||||
| |||||||
1 | Section 25-5. The Renewable Energy, Energy Efficiency, and | ||||||
2 | Coal Resources
Development Law of 1997 is amended by changing | ||||||
3 | Section 6-5 and by adding Section 6-8 as follows:
| ||||||
4 | (20 ILCS 687/6-5)
| ||||||
5 | (Section scheduled to be repealed on December 31, 2020)
| ||||||
6 | Sec. 6-5. Renewable Energy Resources and Coal Technology
| ||||||
7 | Development Assistance Charge. | ||||||
8 | (a) Notwithstanding the provisions of Section 16-111 of the | ||||||
9 | Public
Utilities
Act but subject to subsection (e) of this | ||||||
10 | Section,
each
public utility, electric cooperative, as defined | ||||||
11 | in Section 3.4 of the Electric
Supplier
Act, and municipal | ||||||
12 | utility, as referenced in Section 3-105 of the Public
Utilities | ||||||
13 | Act,
that is engaged in the delivery of electricity or the | ||||||
14 | distribution of natural
gas within
the State of Illinois shall, | ||||||
15 | effective January 1, 1998, assess each of its
customer
accounts | ||||||
16 | a monthly Renewable Energy Resources and Coal Technology
| ||||||
17 | Development Assistance Charge. The delivering public utility, | ||||||
18 | municipal
electric or
gas utility, or electric or gas | ||||||
19 | cooperative for a self-assessing purchaser
remains
subject to | ||||||
20 | the collection of the fee imposed by this Section. The monthly
| ||||||
21 | charge
shall be as follows:
| ||||||
22 | (1) $0.05 per month on each account for residential
| ||||||
23 | electric service as defined in Section 13 of the Energy
| ||||||
24 | Assistance Act;
|
| |||||||
| |||||||
1 | (2) $0.05 per month on each account for residential
gas | ||||||
2 | service as defined in Section 13 of the
Energy Assistance | ||||||
3 | Act;
| ||||||
4 | (3) $0.50 per month on each account for
nonresidential | ||||||
5 | electric service, as defined in Section 13
of the Energy | ||||||
6 | Assistance Act, which had less than 10
megawatts of peak | ||||||
7 | demand during the previous calendar
year;
| ||||||
8 | (4) $0.50 per month on each account for
nonresidential | ||||||
9 | gas service, as defined in Section 13 of
the Energy | ||||||
10 | Assistance Act, which had distributed to it
less than | ||||||
11 | 4,000,000
therms of gas during the previous calendar year;
| ||||||
12 | (5) $37.50 per month on each account for
nonresidential | ||||||
13 | electric service, as defined in Section 13
of the Energy | ||||||
14 | Assistance Act, which had 10 megawatts
or greater of peak | ||||||
15 | demand during the previous calendar
year; and
| ||||||
16 | (6) $37.50 per month on each account for
nonresidential | ||||||
17 | gas service, as defined in Section 13 of
the Energy | ||||||
18 | Assistance Act, which had 4,000,000 or
more therms of gas | ||||||
19 | distributed to it during the previous
calendar year.
| ||||||
20 | (b) The Renewable Energy Resources and Coal Technology | ||||||
21 | Development
Assistance
Charge assessed by electric and gas | ||||||
22 | public utilities shall be considered a
charge
for public | ||||||
23 | utility service.
| ||||||
24 | (c) Fifty percent of the moneys collected pursuant to
this | ||||||
25 | Section shall be deposited in the Renewable Energy
Resources | ||||||
26 | Trust Fund by the Department of Revenue. The remaining 50 |
| |||||||
| |||||||
1 | percent
of the moneys
collected pursuant to this Section shall | ||||||
2 | be deposited in the
Coal Technology Development Assistance Fund | ||||||
3 | by the Department of Revenue
for the exclusive purposes of (1) | ||||||
4 | capturing or sequestering carbon emissions produced by coal | ||||||
5 | combustion; (2) supporting research on the capture and | ||||||
6 | sequestration of carbon emissions produced by coal combustion; | ||||||
7 | and (3) improving coal miner safety.
| ||||||
8 | (d) By the 20th day of the month following the month in | ||||||
9 | which the charges
imposed by this Section were collected, each | ||||||
10 | utility
and alternative retail electric
supplier collecting | ||||||
11 | charges
pursuant to this Section shall remit
to the Department | ||||||
12 | of Revenue for deposit in the
Renewable Energy Resources Trust | ||||||
13 | Fund and the Coal Technology Development
Assistance Fund all
| ||||||
14 | moneys received as payment of the charge provided for in this
| ||||||
15 | Section on a return prescribed and furnished by the Department | ||||||
16 | of Revenue
showing such information as the Department of | ||||||
17 | Revenue may reasonably require.
| ||||||
18 | If any payment provided for in this Section exceeds the | ||||||
19 | utility or alternative retail electric supplier's liabilities | ||||||
20 | under this Act, as shown on an original return, the utility or | ||||||
21 | alternative retail electric supplier may credit the excess | ||||||
22 | payment against liability subsequently to be remitted to the | ||||||
23 | Department of Revenue under this Act. | ||||||
24 | (e) The charges imposed by this Section shall only apply
to | ||||||
25 | customers of municipal electric or gas utilities and electric | ||||||
26 | or gas
cooperatives if the municipal electric or gas utility or |
| |||||||
| |||||||
1 | electric or
gas
cooperative makes an affirmative decision to | ||||||
2 | impose the
charge.
If a municipal electric or gas utility or an | ||||||
3 | electric or gas cooperative
makes an
affirmative decision to | ||||||
4 | impose the charge provided by this Section, the
municipal
| ||||||
5 | electric or gas utility or electric or gas cooperative shall | ||||||
6 | inform the
Department of
Revenue in writing of such decision | ||||||
7 | when it begins to impose the charge.
If a municipal electric or | ||||||
8 | gas utility or electric or gas
cooperative does not assess this | ||||||
9 | charge, its customers shall
not be eligible for the Renewable | ||||||
10 | Energy Resources Program.
| ||||||
11 | (f) The Department of Revenue may establish such rules as | ||||||
12 | it deems
necessary to implement this Section.
| ||||||
13 | (Source: P.A. 95-481, eff. 8-28-07 .)
| ||||||
14 | (20 ILCS 687/6-8 new) | ||||||
15 | Sec. 6-8. Application of Retailers' Occupation Tax | ||||||
16 | provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, | ||||||
17 | 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, | ||||||
18 | and 13 of the Retailers' Occupation Tax Act that are not | ||||||
19 | inconsistent with this Act apply, as far as practicable, to the | ||||||
20 | surcharge imposed by this Act to the same extent as if those | ||||||
21 | provisions were included in this Act. References in the | ||||||
22 | incorporated Sections of the Retailers' Occupation Tax Act to | ||||||
23 | retailers, to sellers, or to persons engaged in the business of | ||||||
24 | selling tangible personal property mean persons required to | ||||||
25 | remit the charge imposed under this Act.
|
| |||||||
| |||||||
1 | Section 25-10. The Cigarette Machine Operators' Occupation | ||||||
2 | Tax Act is amended by changing Section 1-40 as follows:
| ||||||
3 | (35 ILCS 128/1-40)
| ||||||
4 | Sec. 1-40. Returns. | ||||||
5 | (a) Cigarette machine operators shall file a return and | ||||||
6 | remit the tax imposed by Section 1-10 by the 15th day of each | ||||||
7 | month covering the preceding calendar month. Each such return | ||||||
8 | shall show: the quantity of cigarettes made or fabricated | ||||||
9 | during the period covered by the return; the beginning and | ||||||
10 | ending meter reading for each cigarette machine for the period | ||||||
11 | covered by the return; the quantity of such cigarettes sold or | ||||||
12 | otherwise disposed of during the period covered by the return; | ||||||
13 | the brand family and manufacturer and quantity of tobacco | ||||||
14 | products used to make or fabricate cigarettes by use of a | ||||||
15 | cigarette machine; the license number of each distributor from | ||||||
16 | whom tobacco products are purchased; the type and quantity of | ||||||
17 | cigarette tubes purchased for use in a cigarette machine; the | ||||||
18 | type and quantity of cigarette tubes used in a cigarette | ||||||
19 | machine; and such other information as the Department may | ||||||
20 | require. Such returns shall be filed on forms prescribed and | ||||||
21 | furnished by the Department. The Department may promulgate | ||||||
22 | rules to require that the cigarette machine operator's return | ||||||
23 | be accompanied by appropriate computer-generated magnetic | ||||||
24 | media supporting schedule data in the format required by the |
| |||||||
| |||||||
1 | Department, unless, as provided by rule, the Department grants | ||||||
2 | an exception upon petition of a cigarette machine operator. | ||||||
3 | Cigarette machine operators shall send a copy of those | ||||||
4 | returns, together with supporting schedule data, to the | ||||||
5 | Attorney General's Office by the 15th day of each month for the | ||||||
6 | period covering the preceding calendar month. | ||||||
7 | (b) Cigarette machine operators may take a credit against | ||||||
8 | any tax due under Section 1-10 of this Act for taxes imposed | ||||||
9 | and paid under the Tobacco Products Tax Act of 1995 on tobacco | ||||||
10 | products sold to a customer and used in a rolling machine | ||||||
11 | located at the cigarette machine operator's place of business. | ||||||
12 | To be eligible for such credit, the tobacco product must meet | ||||||
13 | the requirements of subsection (a) of Section 1-25 of this Act. | ||||||
14 | This subsection (b) is exempt from the provisions of Section | ||||||
15 | 1-155 of this Act.
| ||||||
16 | (c) If any payment provided for in this Section exceeds the | ||||||
17 | cigarette machine operator's liabilities under this Act, as | ||||||
18 | shown on an original return, the cigarette machine operator may | ||||||
19 | credit such excess payment against liability subsequently to be | ||||||
20 | remitted to the Department under this Act, in accordance with | ||||||
21 | reasonable rules adopted by the Department. | ||||||
22 | (Source: P.A. 97-688, eff. 6-14-12.)
| ||||||
23 | Section 25-15. The Cigarette Tax Act is amended by changing | ||||||
24 | Section 2 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
| ||||||
2 | Sec. 2. Tax imposed; rate; collection, payment, and | ||||||
3 | distribution;
discount. | ||||||
4 | (a) A tax is imposed upon any person engaged in business as | ||||||
5 | a
retailer of cigarettes in this State at the rate of 5 1/2 | ||||||
6 | mills per
cigarette sold, or otherwise disposed of in the | ||||||
7 | course of such business in
this State. In addition to any other | ||||||
8 | tax imposed by this Act, a tax is
imposed upon any person | ||||||
9 | engaged in business as a retailer of cigarettes in
this State | ||||||
10 | at a rate of 1/2 mill per cigarette sold or otherwise disposed
| ||||||
11 | of in the course of such business in this State on and after | ||||||
12 | January 1,
1947, and shall be paid into the Metropolitan Fair | ||||||
13 | and Exposition Authority
Reconstruction Fund or as otherwise | ||||||
14 | provided in Section 29. On and after December 1, 1985, in | ||||||
15 | addition to any
other tax imposed by this Act, a tax is imposed | ||||||
16 | upon any person engaged in
business as a retailer of cigarettes | ||||||
17 | in this State at a rate of 4 mills per
cigarette sold or | ||||||
18 | otherwise disposed of in the course of such business in
this | ||||||
19 | State. Of the additional tax imposed by this amendatory Act of | ||||||
20 | 1985,
$9,000,000 of the moneys received by the Department of | ||||||
21 | Revenue pursuant to
this Act shall be paid each month into the | ||||||
22 | Common School Fund. On and after
the effective date of this | ||||||
23 | amendatory Act of 1989, in addition to any other tax
imposed by | ||||||
24 | this Act, a tax is imposed upon any person engaged in business | ||||||
25 | as a
retailer of cigarettes at the rate of 5 mills per | ||||||
26 | cigarette sold or
otherwise disposed of in the course of such |
| |||||||
| |||||||
1 | business in this State.
On and after the effective date of this | ||||||
2 | amendatory Act of 1993, in addition
to any other tax imposed by | ||||||
3 | this Act, a tax is imposed upon any person engaged
in business | ||||||
4 | as a retailer of cigarettes at the rate of 7 mills per | ||||||
5 | cigarette
sold or otherwise disposed of in the course of such | ||||||
6 | business in this State.
On and after December 15, 1997, in | ||||||
7 | addition
to any other tax imposed by this Act, a tax is imposed | ||||||
8 | upon any person engaged
in business as a retailer of cigarettes | ||||||
9 | at the rate of 7 mills per cigarette
sold or otherwise disposed | ||||||
10 | of in the course of such business of this State.
All of the | ||||||
11 | moneys received by the Department of Revenue pursuant to this | ||||||
12 | Act
and the Cigarette Use Tax Act from the additional taxes | ||||||
13 | imposed by this
amendatory Act of 1997, shall be paid each | ||||||
14 | month into the Common School Fund.
On and after July 1, 2002, | ||||||
15 | in addition to any other tax imposed by this Act,
a tax is | ||||||
16 | imposed upon any person engaged in business as a retailer of
| ||||||
17 | cigarettes at the rate of 20.0 mills per cigarette sold or | ||||||
18 | otherwise disposed
of
in the course of such business in this | ||||||
19 | State.
Beginning on June 24, 2012, in addition to any other tax | ||||||
20 | imposed by this Act, a tax is imposed upon any person engaged | ||||||
21 | in business as a retailer of cigarettes at the rate of 50 mills | ||||||
22 | per cigarette sold or otherwise disposed of in the course of | ||||||
23 | such business in this State. All moneys received by the | ||||||
24 | Department of Revenue under this Act and the Cigarette Use Tax | ||||||
25 | Act from the additional taxes imposed by this amendatory Act of | ||||||
26 | the 97th General Assembly shall be paid each month into the |
| |||||||
| |||||||
1 | Healthcare Provider Relief Fund. The payment of such taxes | ||||||
2 | shall be evidenced by a stamp affixed to
each original package | ||||||
3 | of cigarettes, or an authorized substitute for such stamp
| ||||||
4 | imprinted on each original package of such cigarettes | ||||||
5 | underneath the sealed
transparent outside wrapper of such | ||||||
6 | original package, as hereinafter provided.
However, such taxes | ||||||
7 | are not imposed upon any activity in such business in
| ||||||
8 | interstate commerce or otherwise, which activity may not under
| ||||||
9 | the Constitution and statutes of the United States be made the | ||||||
10 | subject of
taxation by this State.
| ||||||
11 | Beginning on the effective date of this amendatory Act of | ||||||
12 | the 92nd General
Assembly and through June 30, 2006,
all of the | ||||||
13 | moneys received by the Department of Revenue pursuant to this | ||||||
14 | Act
and the Cigarette Use Tax Act, other than the moneys that | ||||||
15 | are dedicated to the Common
School Fund, shall be distributed | ||||||
16 | each month as follows: first, there shall be
paid into the | ||||||
17 | General Revenue Fund an amount which, when added to the amount
| ||||||
18 | paid into the Common School Fund for that month, equals | ||||||
19 | $33,300,000, except that in the month of August of 2004, this | ||||||
20 | amount shall equal $83,300,000; then, from
the moneys | ||||||
21 | remaining, if any amounts required to be paid into the General
| ||||||
22 | Revenue Fund in previous months remain unpaid, those amounts | ||||||
23 | shall be paid into
the General Revenue Fund;
then, beginning on | ||||||
24 | April 1, 2003, from the moneys remaining, $5,000,000 per
month | ||||||
25 | shall be paid into the School Infrastructure Fund; then, if any | ||||||
26 | amounts
required to be paid into the School Infrastructure Fund |
| |||||||
| |||||||
1 | in previous months
remain unpaid, those amounts shall be paid | ||||||
2 | into the School Infrastructure
Fund;
then the moneys remaining, | ||||||
3 | if any, shall be paid into the Long-Term Care
Provider Fund.
To | ||||||
4 | the extent that more than $25,000,000 has been paid into the | ||||||
5 | General
Revenue Fund and Common School Fund per month for the | ||||||
6 | period of July 1, 1993
through the effective date of this | ||||||
7 | amendatory Act of 1994 from combined
receipts
of the Cigarette | ||||||
8 | Tax Act and the Cigarette Use Tax Act, notwithstanding the
| ||||||
9 | distribution provided in this Section, the Department of | ||||||
10 | Revenue is hereby
directed to adjust the distribution provided | ||||||
11 | in this Section to increase the
next monthly payments to the | ||||||
12 | Long Term Care Provider Fund by the amount paid to
the General | ||||||
13 | Revenue Fund and Common School Fund in excess of $25,000,000 | ||||||
14 | per
month and to decrease the next monthly payments to the | ||||||
15 | General Revenue Fund and
Common School Fund by that same excess | ||||||
16 | amount.
| ||||||
17 | Beginning on July 1, 2006, all of the moneys received by | ||||||
18 | the Department of Revenue pursuant to this Act and the | ||||||
19 | Cigarette Use Tax Act, other than the moneys that are dedicated | ||||||
20 | to the Common School Fund and, beginning on the effective date | ||||||
21 | of this amendatory Act of the 97th General Assembly, other than | ||||||
22 | the moneys from the additional taxes imposed by this amendatory | ||||||
23 | Act of the 97th General Assembly that must be paid each month | ||||||
24 | into the Healthcare Provider Relief Fund, shall be distributed | ||||||
25 | each month as follows: first, there shall be paid into the | ||||||
26 | General Revenue Fund an amount that, when added to the amount |
| |||||||
| |||||||
1 | paid into the Common School Fund for that month, equals | ||||||
2 | $29,200,000; then, from the moneys remaining, if any amounts | ||||||
3 | required to be paid into the General Revenue Fund in previous | ||||||
4 | months remain unpaid, those amounts shall be paid into the | ||||||
5 | General Revenue Fund; then from the moneys remaining, | ||||||
6 | $5,000,000 per month shall be paid into the School | ||||||
7 | Infrastructure Fund; then, if any amounts required to be paid | ||||||
8 | into the School Infrastructure Fund in previous months remain | ||||||
9 | unpaid, those amounts shall be paid into the School | ||||||
10 | Infrastructure Fund; then the moneys remaining, if any, shall | ||||||
11 | be paid into the Long-Term Care Provider Fund.
| ||||||
12 | Moneys collected from the tax imposed on little cigars | ||||||
13 | under Section 10-10 of the Tobacco Products Tax Act of 1995 | ||||||
14 | shall be included with the moneys collected under the Cigarette | ||||||
15 | Tax Act and the Cigarette Use Tax Act when making distributions | ||||||
16 | to the Common School Fund, the Healthcare Provider Relief Fund, | ||||||
17 | the General Revenue Fund, the School Infrastructure Fund, and | ||||||
18 | the Long-Term Care Provider Fund under this Section. | ||||||
19 | When any tax imposed herein terminates or has terminated, | ||||||
20 | distributors
who have bought stamps while such tax was in | ||||||
21 | effect and who therefore paid
such tax, but who can show, to | ||||||
22 | the Department's satisfaction, that they
sold the cigarettes to | ||||||
23 | which they affixed such stamps after such tax had
terminated | ||||||
24 | and did not recover the tax or its equivalent from purchasers,
| ||||||
25 | shall be allowed by the Department to take credit for such | ||||||
26 | absorbed tax
against subsequent tax stamp purchases from the |
| |||||||
| |||||||
1 | Department by such
distributor.
| ||||||
2 | The impact of the tax levied by this Act is imposed upon | ||||||
3 | the retailer
and shall be prepaid or pre-collected by the | ||||||
4 | distributor for the purpose of
convenience and facility only, | ||||||
5 | and the amount of the tax shall be added to
the price of the | ||||||
6 | cigarettes sold by such distributor. Collection of the tax
| ||||||
7 | shall be evidenced by a stamp or stamps affixed to each | ||||||
8 | original package of
cigarettes, as hereinafter provided. Any | ||||||
9 | distributor who purchases stamps may credit any excess payments | ||||||
10 | verified by the Department against amounts subsequently due for | ||||||
11 | the purchase of additional stamps, until such time as no excess | ||||||
12 | payment remains.
| ||||||
13 | Each distributor shall collect the tax from the retailer at | ||||||
14 | or before
the time of the sale, shall affix the stamps as | ||||||
15 | hereinafter required, and
shall remit the tax collected from | ||||||
16 | retailers to the Department, as
hereinafter provided. Any | ||||||
17 | distributor who fails to properly collect and pay
the tax | ||||||
18 | imposed by this Act shall be liable for the tax. Any | ||||||
19 | distributor having
cigarettes to which stamps have been affixed | ||||||
20 | in his possession for sale on the
effective date of this | ||||||
21 | amendatory Act of 1989 shall not be required to pay the
| ||||||
22 | additional tax imposed by this amendatory Act of 1989 on such | ||||||
23 | stamped
cigarettes. Any distributor having cigarettes to which | ||||||
24 | stamps have been affixed
in his or her possession for sale at | ||||||
25 | 12:01 a.m. on the effective date of this
amendatory Act of | ||||||
26 | 1993, is required to pay the additional tax imposed by this
|
| |||||||
| |||||||
1 | amendatory Act of 1993 on such stamped cigarettes. This | ||||||
2 | payment, less the
discount provided in subsection (b), shall be | ||||||
3 | due when the distributor first
makes a purchase of cigarette | ||||||
4 | tax stamps after the effective date of this
amendatory Act of | ||||||
5 | 1993, or on the first due date of a return under this Act
after | ||||||
6 | the effective date of this amendatory Act of 1993, whichever | ||||||
7 | occurs
first. Any distributor having cigarettes to which stamps | ||||||
8 | have been affixed
in his possession for sale on December 15, | ||||||
9 | 1997
shall not be required to pay the additional tax imposed by | ||||||
10 | this amendatory Act
of 1997 on such stamped cigarettes.
| ||||||
11 | Any distributor having cigarettes to which stamps have been | ||||||
12 | affixed in his
or her
possession for sale on July 1, 2002 shall | ||||||
13 | not be required to pay the additional
tax imposed by this | ||||||
14 | amendatory Act of the 92nd General Assembly on those
stamped
| ||||||
15 | cigarettes.
| ||||||
16 | Any retailer having cigarettes in his or her possession on | ||||||
17 | June 24, 2012 to which tax stamps have been affixed is not | ||||||
18 | required to pay the additional tax that begins on June 24, 2012 | ||||||
19 | imposed by this amendatory Act of the 97th General Assembly on | ||||||
20 | those stamped cigarettes. Any distributor having cigarettes in | ||||||
21 | his or her possession on June 24, 2012 to which tax stamps have | ||||||
22 | been affixed, and any distributor having stamps in his or her | ||||||
23 | possession on June 24, 2012 that have not been affixed to | ||||||
24 | packages of cigarettes before June 24, 2012, is required to pay | ||||||
25 | the additional tax that begins on June 24, 2012 imposed by this | ||||||
26 | amendatory Act of the 97th General Assembly to the extent the |
| |||||||
| |||||||
1 | calendar year 2012 average monthly volume of cigarette stamps | ||||||
2 | in the distributor's possession exceeds the average monthly | ||||||
3 | volume of cigarette stamps purchased by the distributor in | ||||||
4 | calendar year 2011. This payment, less the discount provided in | ||||||
5 | subsection (b), is due when the distributor first makes a | ||||||
6 | purchase of cigarette stamps on or after June 24, 2012 or on | ||||||
7 | the first due date of a return under this Act occurring on or | ||||||
8 | after June 24, 2012, whichever occurs first. Those distributors | ||||||
9 | may elect to pay the additional tax on packages of cigarettes | ||||||
10 | to which stamps have been affixed and on any stamps in the | ||||||
11 | distributor's possession that have not been affixed to packages | ||||||
12 | of cigarettes over a period not to exceed 12 months from the | ||||||
13 | due date of the additional tax by notifying the Department in | ||||||
14 | writing. The first payment for distributors making such | ||||||
15 | election is due when the distributor first makes a purchase of | ||||||
16 | cigarette tax stamps on or after June 24, 2012 or on the first | ||||||
17 | due date of a return under this Act occurring on or after June | ||||||
18 | 24, 2012, whichever occurs first. Distributors making such an | ||||||
19 | election are not entitled to take the discount provided in | ||||||
20 | subsection (b) on such payments. | ||||||
21 | Distributors making sales of cigarettes to secondary | ||||||
22 | distributors shall add the amount of the tax to the price of | ||||||
23 | the cigarettes sold by the distributors. Secondary | ||||||
24 | distributors making sales of cigarettes to retailers shall | ||||||
25 | include the amount of the tax in the price of the cigarettes | ||||||
26 | sold to retailers. The amount of tax shall not be less than the |
| |||||||
| |||||||
1 | amount of taxes imposed by the State and all local | ||||||
2 | jurisdictions. The amount of local taxes shall be calculated | ||||||
3 | based on the location of the retailer's place of business shown | ||||||
4 | on the retailer's certificate of registration or | ||||||
5 | sub-registration issued to the retailer pursuant to Section 2a | ||||||
6 | of the Retailers' Occupation Tax Act. The original packages of | ||||||
7 | cigarettes sold to the retailer shall bear all the required | ||||||
8 | stamps, or other indicia, for the taxes included in the price | ||||||
9 | of cigarettes. | ||||||
10 | The amount of the Cigarette Tax imposed by this Act shall | ||||||
11 | be separately
stated, apart from the price of the goods, by | ||||||
12 | distributors, manufacturer representatives, secondary | ||||||
13 | distributors, and
retailers, in all bills and sales invoices.
| ||||||
14 | (b) The distributor shall be required to collect the taxes | ||||||
15 | provided
under paragraph (a) hereof, and, to cover the costs of | ||||||
16 | such collection,
shall be allowed a discount during any year | ||||||
17 | commencing July 1st and ending
the following June 30th in | ||||||
18 | accordance with the schedule set out
hereinbelow, which | ||||||
19 | discount shall be allowed at the time of purchase of the
stamps | ||||||
20 | when purchase is required by this Act, or at the time when the | ||||||
21 | tax
is remitted to the Department without the purchase of | ||||||
22 | stamps from the
Department when that method of paying the tax | ||||||
23 | is required or authorized by
this Act. Prior to December 1, | ||||||
24 | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | ||||||
25 | and including the first $700,000 paid hereunder by
such | ||||||
26 | distributor to the Department during any such year; 1 1/3% of |
| |||||||
| |||||||
1 | the next
$700,000 of tax or any part thereof, paid hereunder by | ||||||
2 | such distributor to the
Department during any such year; 1% of | ||||||
3 | the next $700,000 of tax, or any part
thereof, paid hereunder | ||||||
4 | by such distributor to the Department during any such
year, and | ||||||
5 | 2/3 of 1% of the amount of any additional tax paid hereunder by | ||||||
6 | such
distributor to the Department during any such year shall | ||||||
7 | apply. On and after
December 1, 1985, a discount equal to 1.75% | ||||||
8 | of the amount of the tax payable
under this Act up to and | ||||||
9 | including the first $3,000,000 paid hereunder by such
| ||||||
10 | distributor to the Department during any such year and 1.5% of | ||||||
11 | the amount of
any additional tax paid hereunder by such | ||||||
12 | distributor to the Department during
any such year shall apply.
| ||||||
13 | Two or more distributors that use a common means of | ||||||
14 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
15 | the same interests shall be
treated as a single distributor for | ||||||
16 | the purpose of computing the discount.
| ||||||
17 | (c) The taxes herein imposed are in addition to all other | ||||||
18 | occupation or
privilege taxes imposed by the State of Illinois, | ||||||
19 | or by any political
subdivision thereof, or by any municipal | ||||||
20 | corporation.
| ||||||
21 | (Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12; | ||||||
22 | 98-273, eff. 8-9-13.)
| ||||||
23 | Section 25-20. The Cigarette Use Tax Act is amended by | ||||||
24 | changing Section 3 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 135/3) (from Ch. 120, par. 453.33)
| ||||||
2 | Sec. 3. Stamp payment. The tax hereby imposed shall be | ||||||
3 | collected by a
distributor
maintaining a place of business in | ||||||
4 | this State or a distributor authorized
by the Department | ||||||
5 | pursuant to Section 7 hereof to collect the tax, and the
amount | ||||||
6 | of the tax shall be added to the price of the cigarettes sold | ||||||
7 | by
such distributor. Collection of the tax shall be evidenced | ||||||
8 | by a stamp or
stamps affixed to each original package of | ||||||
9 | cigarettes or by an authorized
substitute for such stamp | ||||||
10 | imprinted on each original package of such
cigarettes | ||||||
11 | underneath the sealed transparent outside wrapper of such
| ||||||
12 | original package, except as hereinafter provided. Each | ||||||
13 | distributor who is
required or authorized to collect the tax | ||||||
14 | herein imposed, before delivering
or causing to be delivered | ||||||
15 | any original packages of cigarettes in this
State to any | ||||||
16 | purchaser, shall firmly affix a proper stamp or stamps to each
| ||||||
17 | such package, or (in the case of manufacturers of cigarettes in | ||||||
18 | original
packages which are contained inside a sealed | ||||||
19 | transparent wrapper) shall
imprint the required language on the | ||||||
20 | original package of cigarettes beneath
such outside wrapper as | ||||||
21 | hereinafter provided. Such stamp or stamps need not
be affixed | ||||||
22 | to the original package of any cigarettes with respect to which
| ||||||
23 | the distributor is required to affix a like stamp or stamps by | ||||||
24 | virtue of
the Cigarette Tax Act, however, and no tax imprint | ||||||
25 | need be placed
underneath the sealed transparent wrapper of an | ||||||
26 | original package of
cigarettes with respect to which the |
| |||||||
| |||||||
1 | distributor is required or authorized
to employ a like tax | ||||||
2 | imprint by virtue of the Cigarette Tax Act. Any distributor who | ||||||
3 | purchases stamps may credit any excess payments verified by the | ||||||
4 | Department against amounts subsequently due for the purchase of | ||||||
5 | additional stamps, until such time as no excess payment | ||||||
6 | remains.
| ||||||
7 | No stamp or imprint may be affixed to, or made upon, any | ||||||
8 | package of
cigarettes unless that package complies with all | ||||||
9 | requirements of the federal
Cigarette Labeling and Advertising | ||||||
10 | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | ||||||
11 | warnings, or any other information upon a package of
cigarettes | ||||||
12 | that is sold within the United States. Under the authority of
| ||||||
13 | Section 6, the Department shall revoke the license of any | ||||||
14 | distributor that is
determined to have violated this paragraph.
| ||||||
15 | A person may not affix a stamp on a package of cigarettes, | ||||||
16 | cigarette papers,
wrappers, or tubes if that individual package | ||||||
17 | has been marked for export
outside the United States with a | ||||||
18 | label or notice in compliance with Section
290.185 of Title 27 | ||||||
19 | of the Code of Federal Regulations. It is not a defense to
a | ||||||
20 | proceeding for violation of this paragraph that the label or | ||||||
21 | notice has been
removed, mutilated, obliterated, or altered in | ||||||
22 | any manner.
| ||||||
23 | Only distributors licensed under this Act and | ||||||
24 | transporters, as defined in Section 9c of the Cigarette Tax | ||||||
25 | Act, may possess unstamped original packages of cigarettes. | ||||||
26 | Prior to shipment to an Illinois retailer or secondary |
| |||||||
| |||||||
1 | distributor, a stamp shall be applied to each original package | ||||||
2 | of cigarettes sold to the retailer or secondary distributor. A | ||||||
3 | distributor may apply a tax stamp only to an original package | ||||||
4 | of cigarettes purchased or obtained directly from an in-state | ||||||
5 | maker, manufacturer, or fabricator licensed as a distributor | ||||||
6 | under Section 4 of this Act or an out-of-state maker, | ||||||
7 | manufacturer, or fabricator holding a permit under Section 7 of | ||||||
8 | this Act. A licensed distributor may ship or otherwise cause to | ||||||
9 | be delivered unstamped original packages of cigarettes in, | ||||||
10 | into, or from this State. A licensed distributor may transport | ||||||
11 | unstamped original packages of cigarettes to a facility, | ||||||
12 | wherever located, owned or controlled by such distributor; | ||||||
13 | however, a distributor may not transport unstamped original | ||||||
14 | packages of cigarettes to a facility where retail sales of | ||||||
15 | cigarettes take place or to a facility where a secondary | ||||||
16 | distributor makes sales for resale. Any licensed distributor | ||||||
17 | that ships or otherwise causes to be delivered unstamped | ||||||
18 | original packages of cigarettes into, within, or from this | ||||||
19 | State shall ensure that the invoice or equivalent documentation | ||||||
20 | and the bill of lading or freight bill for the shipment | ||||||
21 | identifies the true name and address of the consignor or | ||||||
22 | seller, the true name and address of the consignee or | ||||||
23 | purchaser, and the quantity by brand style of the cigarettes so | ||||||
24 | transported, provided that this Section shall not be construed | ||||||
25 | as to impose any requirement or liability upon any common or | ||||||
26 | contract carrier. |
| |||||||
| |||||||
1 | Distributors making sales of cigarettes to secondary | ||||||
2 | distributors shall add the amount of the tax to the price of | ||||||
3 | the cigarettes sold by the distributors. Secondary | ||||||
4 | distributors making sales of cigarettes to retailers shall | ||||||
5 | include the amount of the tax in the price of the cigarettes | ||||||
6 | sold to retailers. The amount of tax shall not be less than the | ||||||
7 | amount of taxes imposed by the State and all local | ||||||
8 | jurisdictions. The amount of local taxes shall be calculated | ||||||
9 | based on the location of the retailer's place of business shown | ||||||
10 | on the retailer's certificate of registration or | ||||||
11 | sub-registration issued to the retailer pursuant to Section 2a | ||||||
12 | of the Retailers' Occupation Tax Act. The original packages of | ||||||
13 | cigarettes sold by the retailer shall bear all the required | ||||||
14 | stamps, or other indicia, for the taxes included in the price | ||||||
15 | of cigarettes. | ||||||
16 | Stamps, when required hereunder, shall be purchased from | ||||||
17 | the Department, or
any person authorized by the Department, by | ||||||
18 | distributors. On and after July
1, 2003, payment for such | ||||||
19 | stamps must be made by means of
electronic funds transfer. The | ||||||
20 | Department may
refuse to sell stamps to any person who does not | ||||||
21 | comply with the provisions
of this Act. Beginning on June 6, | ||||||
22 | 2002 and through June 30, 2002,
persons holding valid licenses | ||||||
23 | as distributors may purchase cigarette tax
stamps up to an | ||||||
24 | amount equal to 115% of the distributor's average monthly
| ||||||
25 | cigarette tax stamp purchases over the 12 calendar months prior | ||||||
26 | to June
6, 2002.
|
| |||||||
| |||||||
1 | Prior to December 1, 1985, the Department shall
allow a | ||||||
2 | distributor
21 days in which to make final
payment of the | ||||||
3 | amount to be paid for such stamps, by allowing the
distributor | ||||||
4 | to make payment for the stamps at the time of purchasing them
| ||||||
5 | with a draft which shall be in such form as the Department | ||||||
6 | prescribes, and
which shall be payable within 21 days | ||||||
7 | thereafter: Provided that such
distributor has filed with the | ||||||
8 | Department, and has received the
Department's approval of, a | ||||||
9 | bond, which is in addition to the bond required
under Section 4 | ||||||
10 | of this Act, payable to the Department in an amount equal
to | ||||||
11 | 80% of such distributor's average monthly tax liability to
the | ||||||
12 | Department under this Act during the preceding calendar year or
| ||||||
13 | $500,000, whichever is less. The bond shall be joint and
| ||||||
14 | several and shall be in the form of a surety company bond in | ||||||
15 | such form as
the Department prescribes, or it may be in the | ||||||
16 | form of a bank certificate
of deposit or bank letter of credit. | ||||||
17 | The bond shall be conditioned upon the
distributor's payment of | ||||||
18 | the amount of any 21-day draft which the
Department accepts | ||||||
19 | from that distributor for the delivery of stamps to that
| ||||||
20 | distributor under this Act. The distributor's failure to pay | ||||||
21 | any such
draft, when due, shall also make such distributor | ||||||
22 | automatically liable to
the Department for a penalty equal to | ||||||
23 | 25% of the amount of such draft.
| ||||||
24 | On and after December 1, 1985 and until July 1, 2003, the | ||||||
25 | Department
shall allow a distributor
30 days in which to make
| ||||||
26 | final payment of the amount to be paid for such stamps, by |
| |||||||
| |||||||
1 | allowing the
distributor to make payment for the stamps at the | ||||||
2 | time of purchasing them
with a draft which shall be in such | ||||||
3 | form as the Department prescribes, and
which shall be payable | ||||||
4 | within 30 days thereafter, and beginning on January 1,
2003 and | ||||||
5 | thereafter, the draft shall be payable by means of electronic | ||||||
6 | funds
transfer: Provided that such
distributor has filed with | ||||||
7 | the Department, and has received the
Department's approval of, | ||||||
8 | a bond, which is in addition to the bond required
under Section | ||||||
9 | 4 of this Act, payable to the Department in an amount equal
to | ||||||
10 | 150% of such distributor's average monthly tax liability to the
| ||||||
11 | Department under this Act during the preceding calendar year or | ||||||
12 | $750,000,
whichever is less, except that as to bonds filed on | ||||||
13 | or after January 1,
1987, such additional bond shall be in an | ||||||
14 | amount equal to 100% of such
distributor's average monthly tax | ||||||
15 | liability under this Act during the
preceding calendar year or | ||||||
16 | $750,000, whichever is less. The bond shall be
joint and | ||||||
17 | several and shall be in the form of a surety company bond in | ||||||
18 | such
form as the Department prescribes, or it may be in the | ||||||
19 | form of a bank
certificate of deposit or bank letter of credit.
| ||||||
20 | The bond shall be conditioned upon the distributor's payment of | ||||||
21 | the amount
of any 30-day draft which the Department accepts | ||||||
22 | from that distributor for
the delivery of stamps to that | ||||||
23 | distributor under this Act. The
distributor's failure to pay | ||||||
24 | any such draft, when due, shall also make such
distributor | ||||||
25 | automatically liable to the Department for a penalty equal to
| ||||||
26 | 25% of the amount of such draft.
|
| |||||||
| |||||||
1 | Every prior continuous compliance taxpayer shall be exempt | ||||||
2 | from all
requirements under this Section concerning the | ||||||
3 | furnishing of such bond, as
defined in this Section, as a | ||||||
4 | condition precedent to his being authorized
to engage in the | ||||||
5 | business licensed under this Act. This exemption shall
continue | ||||||
6 | for each such taxpayer until such time as he may be determined | ||||||
7 | by
the Department to be delinquent in the filing of any | ||||||
8 | returns, or is
determined by the Department (either through the | ||||||
9 | Department's issuance of a
final assessment which has become | ||||||
10 | final under the Act, or by the taxpayer's
filing of a return | ||||||
11 | which admits tax to be due that is not paid) to be
delinquent | ||||||
12 | or deficient in the paying of any tax under this Act, at which
| ||||||
13 | time that taxpayer shall become subject to the bond | ||||||
14 | requirements of this
Section and, as a condition of being | ||||||
15 | allowed to continue to engage in the
business licensed under | ||||||
16 | this Act, shall be required to furnish bond to the
Department | ||||||
17 | in such form as provided in this Section. Such taxpayer shall
| ||||||
18 | furnish such bond for a period of 2 years, after which, if the | ||||||
19 | taxpayer has
not been delinquent in the filing of any returns, | ||||||
20 | or delinquent or
deficient in the paying of any tax under this | ||||||
21 | Act, the Department may
reinstate such person as a prior | ||||||
22 | continuance compliance taxpayer. Any
taxpayer who fails to pay | ||||||
23 | an admitted or established liability under this
Act may also be | ||||||
24 | required to post bond or other acceptable security with the
| ||||||
25 | Department guaranteeing the payment of such admitted or | ||||||
26 | established liability.
|
| |||||||
| |||||||
1 | Except as otherwise provided in this Section, any person | ||||||
2 | aggrieved by any decision of the Department under this
Section | ||||||
3 | may, within the time allowed by law, protest and request a | ||||||
4 | hearing before the Department,
whereupon the Department shall | ||||||
5 | give notice and shall hold a hearing in
conformity with the | ||||||
6 | provisions of this Act and then issue its final
administrative | ||||||
7 | decision in the matter to such person. Effective July 1, 2013, | ||||||
8 | protests concerning matters that are subject to the | ||||||
9 | jurisdiction of the Illinois Independent Tax Tribunal shall be | ||||||
10 | filed in accordance with the Illinois Independent Tax Tribunal | ||||||
11 | Act of 2012, and hearings concerning those matters shall be | ||||||
12 | held before the Tribunal in accordance with that Act. With | ||||||
13 | respect to protests filed with the Department prior to July 1, | ||||||
14 | 2013 that would otherwise be subject to the jurisdiction of the | ||||||
15 | Illinois Independent Tax Tribunal, the person filing the | ||||||
16 | protest may elect to be subject to the provisions of the | ||||||
17 | Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||||||
18 | after July 1, 2013, but not later than 30 days after the date | ||||||
19 | on which the protest was filed. If made, the election shall be | ||||||
20 | irrevocable. In the absence of
such a protest filed within the | ||||||
21 | time allowed by law, the Department's
decision shall become | ||||||
22 | final without any further determination being made or
notice | ||||||
23 | given.
| ||||||
24 | The Department shall discharge any surety and shall release | ||||||
25 | and return
any bond or security deposited, assigned, pledged, | ||||||
26 | or otherwise provided to
it by a taxpayer under this Section |
| |||||||
| |||||||
1 | within 30 days after:
| ||||||
2 | (1) such Taxpayer becomes a prior continuous | ||||||
3 | compliance taxpayer; or
| ||||||
4 | (2) such taxpayer has ceased to collect receipts on | ||||||
5 | which he is
required to remit tax to the Department, has | ||||||
6 | filed a final tax return, and
has paid to the Department an | ||||||
7 | amount sufficient to discharge his remaining
tax liability | ||||||
8 | as determined by the Department under this Act. The
| ||||||
9 | Department shall make a final determination of the | ||||||
10 | taxpayer's outstanding
tax liability as expeditiously as | ||||||
11 | possible after his final tax return has
been filed. If the | ||||||
12 | Department cannot make such final determination within
45 | ||||||
13 | days after receiving the final tax return, within such | ||||||
14 | period it shall
so notify the taxpayer, stating its reasons | ||||||
15 | therefor.
| ||||||
16 | At the time of purchasing such stamps from the Department | ||||||
17 | when purchase
is required by this Act, or at the time when the | ||||||
18 | tax which he has collected
is remitted by a distributor to the | ||||||
19 | Department without the purchase of
stamps from the Department | ||||||
20 | when that method of remitting the tax that has
been collected | ||||||
21 | is required or authorized by this Act, the distributor shall
be | ||||||
22 | allowed a discount during any year commencing July 1 and ending | ||||||
23 | the
following June 30 in accordance with the schedule set out | ||||||
24 | hereinbelow, from
the amount to be paid by him to the | ||||||
25 | Department for such stamps, or to be
paid by him to the | ||||||
26 | Department on the basis of monthly remittances (as the
case may |
| |||||||
| |||||||
1 | be), to cover the cost, to such distributor, of collecting the | ||||||
2 | tax
herein imposed by affixing such stamps to the original | ||||||
3 | packages of
cigarettes sold by such distributor or by placing | ||||||
4 | tax imprints underneath
the sealed transparent wrapper of | ||||||
5 | original packages of cigarettes sold by
such distributor (as | ||||||
6 | the case may be): (1) Prior to December 1, 1985, a
discount | ||||||
7 | equal to 1-2/3% of the amount of the tax up to and including | ||||||
8 | the
first $700,000 paid hereunder by
such distributor to the | ||||||
9 | Department during any such year; 1-1/3% of the next
$700,000 of | ||||||
10 | tax or any part thereof, paid hereunder by such distributor to
| ||||||
11 | the Department during any such year; 1% of the next $700,000 of | ||||||
12 | tax, or any
part thereof, paid hereunder by such distributor to | ||||||
13 | the Department during
any such year; and 2/3 of 1% of the | ||||||
14 | amount of any additional tax paid
hereunder by such distributor | ||||||
15 | to the Department during any such year or
(2) On and after | ||||||
16 | December 1, 1985, a discount equal to 1.75% of the
amount of | ||||||
17 | the tax payable under this Act up to and including the first
| ||||||
18 | $3,000,000 paid hereunder by such distributor to the Department | ||||||
19 | during any
such year and 1.5% of the amount of any additional | ||||||
20 | tax paid hereunder by
such distributor to the Department during | ||||||
21 | any such year.
| ||||||
22 | Two or more distributors that use a common means of | ||||||
23 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
24 | the same interests shall be
treated as a single distributor for | ||||||
25 | the purpose of computing the discount.
| ||||||
26 | Cigarette manufacturers who are distributors under Section |
| |||||||
| |||||||
1 | 7(a) of this Act, and who
place their cigarettes in original | ||||||
2 | packages which are contained inside a
sealed transparent | ||||||
3 | wrapper, shall be required to remit the tax which they
are | ||||||
4 | required to collect under this Act to the Department by | ||||||
5 | remitting the
amount thereof to the Department by the 5th day | ||||||
6 | of each month, covering
cigarettes shipped or otherwise | ||||||
7 | delivered to points in Illinois to
purchasers during the | ||||||
8 | preceding calendar month, but a distributor need not
remit to | ||||||
9 | the Department the tax so collected by him from purchasers | ||||||
10 | under
this Act to the extent to which such distributor is | ||||||
11 | required to remit the
tax imposed by the Cigarette Tax Act to | ||||||
12 | the Department with respect to the
same cigarettes. All taxes | ||||||
13 | upon cigarettes under this Act are a direct tax
upon the retail | ||||||
14 | consumer and shall conclusively be presumed to be
precollected | ||||||
15 | for the purpose of convenience and facility only.
Cigarette | ||||||
16 | manufacturers that are distributors licensed under Section | ||||||
17 | 7(a) of this Act and who place their cigarettes in original | ||||||
18 | packages which
are contained inside a sealed transparent | ||||||
19 | wrapper, before delivering such
cigarettes or causing such | ||||||
20 | cigarettes to be delivered in this State to
purchasers, shall | ||||||
21 | evidence their obligation to collect and remit the tax
due with | ||||||
22 | respect to such cigarettes by imprinting language to be | ||||||
23 | prescribed
by the Department on each original package of such | ||||||
24 | cigarettes underneath
the sealed transparent outside wrapper | ||||||
25 | of such original package, in such
place thereon and in such | ||||||
26 | manner as the Department may prescribe; provided
(as stated |
| |||||||
| |||||||
1 | hereinbefore) that this requirement does not apply when such
| ||||||
2 | distributor is required or authorized by the Cigarette Tax Act | ||||||
3 | to place the
tax imprint provided for in the last paragraph of | ||||||
4 | Section 3 of that Act
underneath the sealed transparent wrapper | ||||||
5 | of such original package of
cigarettes. Such imprinted language | ||||||
6 | shall acknowledge the manufacturer's
collection and payment of | ||||||
7 | or liability for the tax imposed by this Act with
respect to | ||||||
8 | such cigarettes.
| ||||||
9 | The Department shall adopt the design or designs of the tax | ||||||
10 | stamps and
shall procure the printing of such stamps in such | ||||||
11 | amounts and denominations
as it deems necessary to provide for | ||||||
12 | the affixation of the proper amount of
tax stamps to each | ||||||
13 | original package of cigarettes.
| ||||||
14 | Where tax stamps are required, the Department may authorize | ||||||
15 | distributors
to affix revenue tax stamps by imprinting tax | ||||||
16 | meter stamps upon original
packages of cigarettes. The | ||||||
17 | Department shall adopt rules and regulations
relating to the | ||||||
18 | imprinting of such tax meter stamps as will result in
payment | ||||||
19 | of the proper taxes as herein imposed. No distributor may affix
| ||||||
20 | revenue tax stamps to original packages of cigarettes by | ||||||
21 | imprinting meter
stamps thereon unless such distributor has | ||||||
22 | first obtained permission from
the Department to employ this | ||||||
23 | method of affixation. The Department shall
regulate the use of | ||||||
24 | tax meters and may, to assure the proper collection of
the | ||||||
25 | taxes imposed by this Act, revoke or suspend the privilege, | ||||||
26 | theretofore
granted by the Department to any distributor, to |
| |||||||
| |||||||
1 | imprint tax meter stamps
upon original packages of cigarettes.
| ||||||
2 | The tax hereby imposed and not paid pursuant to this | ||||||
3 | Section shall be
paid to the Department directly by any person | ||||||
4 | using such cigarettes within
this State, pursuant to Section 12 | ||||||
5 | hereof.
| ||||||
6 | A distributor shall not affix, or cause to be affixed, any | ||||||
7 | stamp or imprint
to a package
of cigarettes, as provided for in | ||||||
8 | this Section, if the tobacco product
manufacturer, as defined | ||||||
9 | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | ||||||
10 | that made or sold the cigarettes has failed to become a | ||||||
11 | participating
manufacturer, as defined in subdivision (a)(1) | ||||||
12 | of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, | ||||||
13 | or has failed to create a qualified escrow
fund for any | ||||||
14 | cigarettes manufactured by the tobacco
product manufacturer | ||||||
15 | and sold in this State or otherwise failed to bring itself
into
| ||||||
16 | compliance with subdivision (a)(2) of Section 15 of the Tobacco | ||||||
17 | Product
Manufacturers' Escrow Act.
| ||||||
18 | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; | ||||||
19 | 97-1129, eff. 8-28-12.)
| ||||||
20 | Section 25-25. The Tobacco Products Tax Act of 1995 is | ||||||
21 | amended by changing Section 10-30 as follows:
| ||||||
22 | (35 ILCS 143/10-30)
| ||||||
23 | Sec. 10-30. Returns. | ||||||
24 | (a) Every distributor shall, on or before the 15th day of
|
| |||||||
| |||||||
1 | each month, file a return with the Department covering the | ||||||
2 | preceding calendar
month. The return shall disclose the | ||||||
3 | wholesale price for all tobacco products other than moist snuff | ||||||
4 | and the quantity in ounces of moist snuff sold
or otherwise | ||||||
5 | disposed of and other information that the Department may
| ||||||
6 | reasonably require. The return shall be filed upon a form | ||||||
7 | prescribed and
furnished by the Department.
| ||||||
8 | (b) In addition to the information required under | ||||||
9 | subsection (a), on or before the 15th day of each month, | ||||||
10 | covering the preceding calendar month, each stamping | ||||||
11 | distributor shall, on forms prescribed and furnished by the | ||||||
12 | Department, report the quantity of little cigars sold or | ||||||
13 | otherwise disposed of, including the number of packages of | ||||||
14 | little cigars sold or disposed of during the month containing | ||||||
15 | 20 or 25 little cigars. | ||||||
16 | (c) At the time when any return of any distributor is due | ||||||
17 | to be filed with
the Department, the distributor shall also | ||||||
18 | remit to the Department the
tax liability that the distributor | ||||||
19 | has incurred for transactions
occurring in the preceding | ||||||
20 | calendar month.
| ||||||
21 | (d) The Department may adopt rules to require the | ||||||
22 | electronic filing of any return or document required to be | ||||||
23 | filed under this Act. Those rules may provide for exceptions | ||||||
24 | from the filing requirement set forth in this paragraph for | ||||||
25 | persons who demonstrate that they do not have access to the | ||||||
26 | Internet and petition the Department to waive the electronic |
| |||||||
| |||||||
1 | filing requirement. | ||||||
2 | (e) If any payment provided for in this Section exceeds the | ||||||
3 | distributor's liabilities under this Act, as shown on an | ||||||
4 | original return, the distributor may credit such excess payment | ||||||
5 | against liability subsequently to be remitted to the Department | ||||||
6 | under this Act, in accordance with reasonable rules adopted by | ||||||
7 | the Department. | ||||||
8 | (Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
| ||||||
9 | Section 25-30. The Hotel Operators' Occupation Tax Act is | ||||||
10 | amended by changing Section 6 as follows:
| ||||||
11 | (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
| ||||||
12 | Sec. 6. Except as provided hereinafter in this Section, on | ||||||
13 | or before
the last day of each calendar month, every person | ||||||
14 | engaged in the
business of renting, leasing or letting rooms in | ||||||
15 | a hotel in this State
during the preceding calendar month shall | ||||||
16 | file a return with the
Department, stating:
| ||||||
17 | 1. The name of the operator;
| ||||||
18 | 2. His residence address and the address of his | ||||||
19 | principal place of
business and the address of the | ||||||
20 | principal place of business (if that is
a different | ||||||
21 | address) from which he engages in the business of renting,
| ||||||
22 | leasing or letting rooms in a hotel in this State;
| ||||||
23 | 3. Total amount of rental receipts received by him | ||||||
24 | during the
preceding calendar month from renting, leasing |
| |||||||
| |||||||
1 | or letting rooms during
such preceding calendar month;
| ||||||
2 | 4. Total amount of rental receipts received by him | ||||||
3 | during the
preceding calendar month from renting, leasing | ||||||
4 | or letting rooms to
permanent residents during such | ||||||
5 | preceding calendar month;
| ||||||
6 | 5. Total amount of other exclusions from gross rental | ||||||
7 | receipts
allowed by this Act;
| ||||||
8 | 6. Gross rental receipts which were received by him | ||||||
9 | during the
preceding calendar month and upon the basis of | ||||||
10 | which the tax is imposed;
| ||||||
11 | 7. The amount of tax due;
| ||||||
12 | 8. Such other reasonable information as the Department | ||||||
13 | may require.
| ||||||
14 | If the operator's average monthly tax liability to the | ||||||
15 | Department
does not exceed $200, the Department may authorize | ||||||
16 | his returns to be
filed on a quarter annual basis, with the | ||||||
17 | return for January, February
and March of a given year being | ||||||
18 | due by April 30 of such year; with the
return for April, May | ||||||
19 | and June of a given year being due by July 31 of
such year; with | ||||||
20 | the return for July, August and September of a given
year being | ||||||
21 | due by October 31 of such year, and with the return for
| ||||||
22 | October, November and December of a given year being due by | ||||||
23 | January 31
of the following year.
| ||||||
24 | If the operator's average monthly tax liability to the | ||||||
25 | Department
does not exceed $50, the Department may authorize | ||||||
26 | his returns to be
filed on an annual basis, with the return for |
| |||||||
| |||||||
1 | a given year being due by
January 31 of the following year.
| ||||||
2 | Such quarter annual and annual returns, as to form and | ||||||
3 | substance,
shall be subject to the same requirements as monthly | ||||||
4 | returns.
| ||||||
5 | Notwithstanding any other provision in this Act concerning | ||||||
6 | the time
within which an operator may file his return, in the | ||||||
7 | case of any
operator who ceases to engage in a kind of business | ||||||
8 | which makes him
responsible for filing returns under this Act, | ||||||
9 | such operator shall file
a final return under this Act with the | ||||||
10 | Department not more than 1 month
after discontinuing such | ||||||
11 | business.
| ||||||
12 | Where the same person has more than 1 business registered | ||||||
13 | with the
Department under separate registrations under this | ||||||
14 | Act, such person
shall not file each return that is due as a | ||||||
15 | single return covering all
such registered businesses, but | ||||||
16 | shall file separate returns for each
such registered business.
| ||||||
17 | In his return, the operator shall determine the value of | ||||||
18 | any
consideration other than money received by him in | ||||||
19 | connection with the
renting, leasing or letting of rooms in the | ||||||
20 | course of his business and
he shall include such value in his | ||||||
21 | return. Such determination shall be
subject to review and | ||||||
22 | revision by the Department in the manner
hereinafter provided | ||||||
23 | for the correction of returns.
| ||||||
24 | Where the operator is a corporation, the return filed on | ||||||
25 | behalf of
such corporation shall be signed by the president, | ||||||
26 | vice-president,
secretary or treasurer or by the properly |
| |||||||
| |||||||
1 | accredited agent of such
corporation.
| ||||||
2 | The person filing the return herein provided for shall, at | ||||||
3 | the time of
filing such return, pay to the Department the | ||||||
4 | amount of tax herein imposed.
The operator filing the return | ||||||
5 | under this Section shall, at the time of
filing such return, | ||||||
6 | pay to the Department the amount of tax imposed by this
Act | ||||||
7 | less a discount of 2.1% or $25 per calendar year, whichever is | ||||||
8 | greater,
which is allowed to reimburse the operator for the | ||||||
9 | expenses incurred in
keeping records, preparing and filing | ||||||
10 | returns, remitting the tax and
supplying data to the Department | ||||||
11 | on request.
| ||||||
12 | If any payment provided for in this Section exceeds the | ||||||
13 | operator's liabilities under this Act, as shown on an original | ||||||
14 | return, the Department may authorize the operator to credit | ||||||
15 | such excess payment against liability subsequently to be | ||||||
16 | remitted to the Department under this Act, in accordance with | ||||||
17 | reasonable rules adopted by the Department. If the Department | ||||||
18 | subsequently determines that all or any part of the credit | ||||||
19 | taken was not actually due to the operator, the operator's | ||||||
20 | discount shall be reduced by an amount equal to the difference | ||||||
21 | between the discount as applied to the credit taken and that | ||||||
22 | actually due, and that operator shall be liable for penalties | ||||||
23 | and interest on such difference. | ||||||
24 | There shall be deposited in the Build Illinois Fund in the | ||||||
25 | State
Treasury for each State fiscal year 40% of the amount of | ||||||
26 | total
net proceeds from the tax imposed by subsection (a) of |
| |||||||
| |||||||
1 | Section 3.
Of the remaining 60%, $5,000,000 shall be deposited | ||||||
2 | in the Illinois
Sports Facilities Fund and credited to the | ||||||
3 | Subsidy Account each fiscal
year by making monthly deposits in | ||||||
4 | the amount of 1/8 of $5,000,000 plus
cumulative deficiencies in | ||||||
5 | such deposits for prior months, and an
additional $8,000,000 | ||||||
6 | shall be deposited in the Illinois Sports Facilities
Fund and | ||||||
7 | credited to the Advance Account each fiscal year by making | ||||||
8 | monthly
deposits in the amount of 1/8 of $8,000,000 plus any | ||||||
9 | cumulative deficiencies
in such deposits for prior months; | ||||||
10 | provided, that for fiscal years ending
after June 30, 2001, the | ||||||
11 | amount to be so deposited into the Illinois
Sports Facilities | ||||||
12 | Fund and credited to the Advance Account each fiscal year
shall | ||||||
13 | be increased from $8,000,000 to the then applicable Advance | ||||||
14 | Amount and
the required monthly deposits beginning with July | ||||||
15 | 2001 shall be in the amount
of 1/8 of the then applicable | ||||||
16 | Advance Amount plus any cumulative deficiencies
in those | ||||||
17 | deposits for prior months. (The deposits of the additional | ||||||
18 | $8,000,000
or the then applicable Advance Amount, as | ||||||
19 | applicable,
during each fiscal year shall be treated as | ||||||
20 | advances
of funds to the Illinois Sports Facilities Authority | ||||||
21 | for its corporate
purposes to the extent paid to the Authority | ||||||
22 | or its trustee and shall be
repaid into the General Revenue | ||||||
23 | Fund in the State Treasury by the State
Treasurer on behalf of | ||||||
24 | the Authority pursuant to Section 19 of the Illinois
Sports | ||||||
25 | Facilities Authority Act, as amended. If in any fiscal year the | ||||||
26 | full
amount of the then applicable Advance Amount
is not repaid |
| |||||||
| |||||||
1 | into the General Revenue Fund, then the deficiency shall be | ||||||
2 | paid
from the amount in the Local Government Distributive Fund | ||||||
3 | that would otherwise
be allocated to the City of Chicago under | ||||||
4 | the State Revenue Sharing Act.)
| ||||||
5 | For purposes of the foregoing paragraph, the term "Advance | ||||||
6 | Amount"
means, for fiscal year 2002, $22,179,000, and for | ||||||
7 | subsequent fiscal years
through fiscal year 2032, 105.615% of | ||||||
8 | the Advance Amount for the immediately
preceding fiscal year, | ||||||
9 | rounded up to the nearest $1,000.
| ||||||
10 | Of the remaining 60% of the amount of total net proceeds | ||||||
11 | prior to August 1, 2011 from the tax
imposed by subsection (a) | ||||||
12 | of Section 3 after all required deposits in the
Illinois Sports | ||||||
13 | Facilities Fund, the amount equal to 8% of the net revenue
| ||||||
14 | realized from this Act plus an amount equal to
8% of the net | ||||||
15 | revenue realized from any tax imposed under Section 4.05 of the
| ||||||
16 | Chicago World's Fair-1992 Authority Act during the preceding | ||||||
17 | month shall be
deposited in the Local Tourism Fund each month | ||||||
18 | for purposes authorized by
Section 605-705 of the Department of | ||||||
19 | Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of | ||||||
20 | the remaining 60% of the amount of total net proceeds beginning | ||||||
21 | on August 1, 2011 from the tax imposed by subsection (a) of | ||||||
22 | Section 3 after all required deposits in the Illinois Sports | ||||||
23 | Facilities Fund, an amount equal to 8% of the net revenue | ||||||
24 | realized from this Act plus an amount equal to 8% of the net | ||||||
25 | revenue realized from any tax imposed under Section 4.05 of the | ||||||
26 | Chicago World's Fair-1992 Authority Act during the preceding |
| |||||||
| |||||||
1 | month shall be deposited as follows: 18% of such amount shall | ||||||
2 | be deposited into the Chicago Travel Industry Promotion Fund | ||||||
3 | for the purposes described in subsection (n) of Section 5 of | ||||||
4 | the Metropolitan Pier and Exposition Authority Act and the | ||||||
5 | remaining 82% of such amount shall be deposited into the Local | ||||||
6 | Tourism Fund each month for purposes authorized by Section | ||||||
7 | 605-705 of the Department of Commerce and Economic Opportunity | ||||||
8 | Law. Beginning on August 1, 1999 and ending on July 31, 2011, | ||||||
9 | an amount equal to 4.5% of the net revenue
realized from the | ||||||
10 | Hotel Operators' Occupation Tax Act during the preceding
month | ||||||
11 | shall be deposited into the International Tourism Fund for the | ||||||
12 | purposes
authorized in Section 605-707 of the Department of | ||||||
13 | Commerce
and Economic Opportunity Law. Beginning on August 1, | ||||||
14 | 2011, an amount equal to 4.5% of the net revenue realized from | ||||||
15 | this Act during the preceding month shall be deposited as | ||||||
16 | follows: 55% of such amount shall be deposited into the Chicago | ||||||
17 | Travel Industry Promotion Fund for the purposes described in | ||||||
18 | subsection (n) of Section 5 of the Metropolitan Pier and | ||||||
19 | Exposition Authority Act and the remaining 45% of such amount | ||||||
20 | deposited into the International Tourism Fund for the purposes | ||||||
21 | authorized in Section 605-707 of the Department of Commerce and | ||||||
22 | Economic Opportunity Law. "Net
revenue realized for a month" | ||||||
23 | means the revenue collected by the State under
that Act during | ||||||
24 | the previous month less the amount paid out during that same
| ||||||
25 | month as refunds to taxpayers for overpayment of liability | ||||||
26 | under that Act.
|
| |||||||
| |||||||
1 | After making all these deposits, all other proceeds of the | ||||||
2 | tax imposed under
subsection (a) of Section 3 shall be | ||||||
3 | deposited in the General Revenue Fund in
the State Treasury. | ||||||
4 | All moneys received by the Department from the additional
tax | ||||||
5 | imposed under subsection (b) of Section 3 shall be deposited | ||||||
6 | into the Build
Illinois Fund in the State Treasury.
| ||||||
7 | The Department may, upon separate written notice to a | ||||||
8 | taxpayer, require
the taxpayer to prepare and file with the | ||||||
9 | Department on a form prescribed
by the Department within not | ||||||
10 | less than 60 days after receipt of the notice
an annual | ||||||
11 | information return for the tax year specified in the notice.
| ||||||
12 | Such annual return to the Department shall include a statement | ||||||
13 | of gross
receipts as shown by the operator's last State income | ||||||
14 | tax return. If the
total receipts of the business as reported | ||||||
15 | in the State income tax return
do not agree with the gross | ||||||
16 | receipts reported to the Department for the
same period, the | ||||||
17 | operator shall attach to his annual information return a
| ||||||
18 | schedule showing a reconciliation of the 2 amounts and the | ||||||
19 | reasons for the
difference. The operator's annual information | ||||||
20 | return to the Department
shall also disclose pay roll | ||||||
21 | information of the operator's business during
the year covered | ||||||
22 | by such return and any additional reasonable information
which | ||||||
23 | the Department deems would be helpful in determining the | ||||||
24 | accuracy of
the monthly, quarterly or annual tax returns by | ||||||
25 | such operator as
hereinbefore provided for in this Section.
| ||||||
26 | If the annual information return required by this Section |
| |||||||
| |||||||
1 | is not filed
when and as required the taxpayer shall be liable | ||||||
2 | for a penalty in an
amount determined in accordance with | ||||||
3 | Section 3-4 of the Uniform Penalty and
Interest Act until such | ||||||
4 | return is filed as required, the penalty to be
assessed and | ||||||
5 | collected in the same manner as any other penalty provided
for | ||||||
6 | in this Act.
| ||||||
7 | The chief executive officer, proprietor, owner or highest | ||||||
8 | ranking manager
shall sign the annual return to certify the | ||||||
9 | accuracy of the information
contained therein. Any person who | ||||||
10 | willfully signs the annual return containing
false or | ||||||
11 | inaccurate information shall be guilty of perjury and punished
| ||||||
12 | accordingly. The annual return form prescribed by the | ||||||
13 | Department shall
include a warning that the person signing the | ||||||
14 | return may be liable for perjury.
| ||||||
15 | The foregoing portion of this Section concerning the filing | ||||||
16 | of an annual
information return shall not apply to an operator | ||||||
17 | who is not required to
file an income tax return with the | ||||||
18 | United States Government.
| ||||||
19 | (Source: P.A. 97-617, eff. 10-26-11.)
| ||||||
20 | Section 25-35. The Live Adult Entertainment Facility | ||||||
21 | Surcharge Act is amended by changing Section 10 as follows:
| ||||||
22 | (35 ILCS 175/10)
| ||||||
23 | Sec. 10. Surcharge imposed; returns. | ||||||
24 | (a) An annual surcharge is imposed upon each operator who |
| |||||||
| |||||||
1 | operates a live adult entertainment facility in this State. By | ||||||
2 | January 20, 2014, and by January 20 of each year thereafter, | ||||||
3 | each operator shall elect to pay the surcharge according to | ||||||
4 | either item (1) or item (2) of this subsection. | ||||||
5 | (1) An operator who elects to be subject to this item | ||||||
6 | (1) shall pay to the Department a surcharge imposed upon | ||||||
7 | admissions to a live adult entertainment facility operated | ||||||
8 | by the operator in this State in an amount equal to $3 per | ||||||
9 | person admitted to that live adult entertainment facility. | ||||||
10 | This item (1) does not require a live entertainment | ||||||
11 | facility to impose a fee on a customer of the facility. An | ||||||
12 | operator has the discretion to determine the manner in | ||||||
13 | which the facility derives the moneys required to pay the | ||||||
14 | surcharge imposed under this Section. In the event that an | ||||||
15 | operator has not filed the applicable returns under the | ||||||
16 | Retailers' Occupation Tax Act for a full calendar year | ||||||
17 | prior to any January 20, then such operator shall pay the | ||||||
18 | surcharge under this Act pursuant to this item (1) for | ||||||
19 | moneys owed to the Department subject to this Act for the | ||||||
20 | previous calendar year. | ||||||
21 | (2) An operator may, in the alternative, pay to the | ||||||
22 | Department the surcharge as follows: | ||||||
23 | (A) If the gross receipts received by the live | ||||||
24 | adult entertainment facility during the preceding | ||||||
25 | calendar year, upon the basis of which a tax is imposed | ||||||
26 | under Section 2 of the Retailers' Occupation Tax Act, |
| |||||||
| |||||||
1 | are equal or greater than $2,000,000 during the | ||||||
2 | preceding calendar year, and if the operator elects to | ||||||
3 | be subject to this item (2), then the operator shall | ||||||
4 | pay the Department a surcharge of $25,000. | ||||||
5 | (B) If the gross receipts received by the live | ||||||
6 | adult entertainment facility during the preceding | ||||||
7 | calendar year, upon the basis of which a tax is imposed | ||||||
8 | under Section 2 of the Retailers' Occupation Tax Act, | ||||||
9 | are equal to or greater than $500,000 but less than | ||||||
10 | $2,000,000 during the preceding calendar year, and if | ||||||
11 | the operator elects to be subject to this item (2), | ||||||
12 | then the operator shall pay to the Department a | ||||||
13 | surcharge of $15,000. | ||||||
14 | (C) If the gross receipts received by the live | ||||||
15 | adult entertainment facility during the preceding | ||||||
16 | calendar year, upon the basis of which a tax is imposed | ||||||
17 | under Section 2 of the Retailers' Occupation Tax Act, | ||||||
18 | are less than $500,000 during the preceding calendar | ||||||
19 | year, and if the operator elects to be subject to this | ||||||
20 | item (2), then the operator shall pay the Department a | ||||||
21 | surcharge of $5,000. | ||||||
22 | (b) For each live adult entertainment facility paying the | ||||||
23 | surcharge as set forth in item (1) of subsection (a) of this | ||||||
24 | Section, the operator must file a return electronically as | ||||||
25 | provided by the Department and remit payment to the Department | ||||||
26 | on an annual basis no later than January 20 covering the |
| |||||||
| |||||||
1 | previous calendar year. Each return made to the Department must | ||||||
2 | state the following: | ||||||
3 | (1) the name of the operator; | ||||||
4 | (2) the address of the live adult entertainment | ||||||
5 | facility and the address of the principal place of business | ||||||
6 | (if that is a different address) of the operator; | ||||||
7 | (3) the total number of admissions to the facility in | ||||||
8 | the preceding calendar year; and | ||||||
9 | (4) the total amount of surcharge collected in the | ||||||
10 | preceding calendar year. | ||||||
11 | Notwithstanding any other provision of this subsection | ||||||
12 | concerning the time within which an operator may file his or | ||||||
13 | her return, if an operator ceases to operate a live adult | ||||||
14 | entertainment facility, then he or she must file a final return | ||||||
15 | under this Act with the Department not more than one calendar | ||||||
16 | month after discontinuing that business. | ||||||
17 | (c) For each live adult entertainment facility paying the | ||||||
18 | surcharge as set forth in item (2) of subsection (a) of this | ||||||
19 | Section, the operator must file a return electronically as | ||||||
20 | provided by the Department and remit payment to the Department | ||||||
21 | on an annual basis no later than January 20 covering the | ||||||
22 | previous calendar year. Each return made to the Department must | ||||||
23 | state the following: | ||||||
24 | (1) the name of the operator; | ||||||
25 | (2) the address of the live adult entertainment | ||||||
26 | facility and the address of the principal place of business |
| |||||||
| |||||||
1 | (if that is a different address) of the operator; | ||||||
2 | (3) the gross receipts received by the live adult | ||||||
3 | entertainment facility during the preceding calendar year, | ||||||
4 | upon the basis of which tax is imposed under Section 2 of | ||||||
5 | the Retailers' Occupation Tax Act; and | ||||||
6 | (4) the applicable surcharge from Section 10(a)(2) of | ||||||
7 | this Act to be paid by the operator. | ||||||
8 | Notwithstanding any other provision of this subsection | ||||||
9 | concerning the time within which an operator may file his or | ||||||
10 | her return, if an operator ceases to operate a live adult | ||||||
11 | entertainment facility, then he or she must file a final return | ||||||
12 | under this Act with the Department not more than one calendar | ||||||
13 | month after discontinuing that business. | ||||||
14 | (d) Beginning January 1, 2014, the Department shall pay all | ||||||
15 | proceeds collected from the surcharge imposed under this Act | ||||||
16 | into the Sexual Assault Services and Prevention Fund, less 2% | ||||||
17 | of those proceeds, which shall be paid into the Tax Compliance | ||||||
18 | and Administration Fund in the State treasury from which it | ||||||
19 | shall be appropriated to the Department to cover the costs of | ||||||
20 | the Department in administering and enforcing the provisions of | ||||||
21 | this Act.
| ||||||
22 | (e) If any payment provided for in this Section exceeds the | ||||||
23 | operator's liabilities under this Act, as shown on an original | ||||||
24 | return, the operator may credit such excess payment against | ||||||
25 | liability subsequently to be remitted to the Department under | ||||||
26 | this Act, in accordance with reasonable rules adopted by the |
| |||||||
| |||||||
1 | Department. | ||||||
2 | (Source: P.A. 97-1035, eff. 1-1-13.)
| ||||||
3 | Section 25-40. The Illinois Hydraulic Fracturing Tax Act is | ||||||
4 | amended by changing Sections 2-45 and 2-50 as follows:
| ||||||
5 | (35 ILCS 450/2-45)
| ||||||
6 | Sec. 2-45. Purchaser's return and tax remittance. Each | ||||||
7 | purchaser shall make a return to the Department showing the | ||||||
8 | quantity of oil or gas purchased during the month for which the | ||||||
9 | return is filed, the price paid therefor, total value, the name | ||||||
10 | and address of the operator or other person from whom the same | ||||||
11 | was purchased, a description of the production unit in the | ||||||
12 | manner prescribed by the Department from which such oil or gas | ||||||
13 | was severed and the amount of tax due from each production unit | ||||||
14 | for each calendar month. All taxes due, or to be remitted, by | ||||||
15 | the purchaser shall accompany this return. The return shall be | ||||||
16 | filed on or before the last day of the month after the calendar | ||||||
17 | month for which the return is required. The Department shall | ||||||
18 | forward the necessary information to each Chief County | ||||||
19 | Assessment Officer for the administration and application of ad | ||||||
20 | valorem real property taxes at the county level. This | ||||||
21 | information shall be forwarded to the Chief County Assessment | ||||||
22 | Officers in a yearly summary before March 1 of the following | ||||||
23 | calendar year. The Department may require any additional report | ||||||
24 | or information it may deem necessary for the proper |
| |||||||
| |||||||
1 | administration of this Act. | ||||||
2 | Such returns shall be filed electronically in the manner | ||||||
3 | prescribed by the Department. Purchasers shall make all | ||||||
4 | payments of that tax to the Department by electronic funds | ||||||
5 | transfer unless, as provided by rule, the Department grants an | ||||||
6 | exception upon petition of a purchaser. Purchasers' returns | ||||||
7 | must be accompanied by appropriate computer generated magnetic | ||||||
8 | media supporting schedule data in the format required by the | ||||||
9 | Department, unless, as provided by rule, the Department grants | ||||||
10 | an exception upon petition of a purchaser.
| ||||||
11 | If any payment provided for in this Section exceeds the | ||||||
12 | purchaser's liabilities under this Act, as shown on an original | ||||||
13 | return, the purchaser may credit such excess payment against | ||||||
14 | liability subsequently to be remitted to the Department under | ||||||
15 | this Act, in accordance with reasonable rules adopted by the | ||||||
16 | Department. | ||||||
17 | (Source: P.A. 98-22, eff. 6-17-13; 98-23, eff. 6-17-13; 98-756, | ||||||
18 | eff. 7-16-14.)
| ||||||
19 | (35 ILCS 450/2-50)
| ||||||
20 | Sec. 2-50. Operator returns; payment of tax. | ||||||
21 | (a) If, on or after July 1, 2013, oil or gas is transported | ||||||
22 | off the production unit where severed by the operator, used on | ||||||
23 | the production unit where severed, or if the manufacture and | ||||||
24 | conversion of oil and gas into refined products occurs on the | ||||||
25 | production unit where severed, the operator is responsible for |
| |||||||
| |||||||
1 | remitting the tax imposed under subsection (a) of Section 2-15, | ||||||
2 | on or before the last day of the month following the end of the | ||||||
3 | calendar month in which the oil and gas is removed from the | ||||||
4 | production unit, and such payment shall be accompanied by a | ||||||
5 | return to the Department showing the gross quantity of oil or | ||||||
6 | gas removed during the month for which the return is filed, the | ||||||
7 | price paid therefor, and if no price is paid therefor, the | ||||||
8 | value of the oil and gas, a description of the production unit | ||||||
9 | from which such oil or gas was severed, and the amount of tax. | ||||||
10 | The Department may require any additional information it may | ||||||
11 | deem necessary for the proper administration of this Act. | ||||||
12 | (b) Operators shall file all returns electronically in the | ||||||
13 | manner prescribed by the Department unless, as provided by | ||||||
14 | rule, the Department grants an exception upon petition of an | ||||||
15 | operator. Operators shall make all payments of that tax to the | ||||||
16 | Department by electronic funds transfer unless, as provided by | ||||||
17 | rule, the Department grants an exception upon petition of an | ||||||
18 | operator. Operators' returns must be accompanied by | ||||||
19 | appropriate computer generated magnetic media supporting | ||||||
20 | schedule data in the format required by the Department, unless, | ||||||
21 | as provided by rule, the Department grants an exception upon | ||||||
22 | petition of a purchaser. | ||||||
23 | (c) Any operator who makes a monetary payment to a producer | ||||||
24 | for his or her portion of the value of products from a | ||||||
25 | production unit shall withhold from such payment the amount of | ||||||
26 | tax due from the producer. Any operator who pays any tax due |
| |||||||
| |||||||
1 | from a producer shall be entitled to reimbursement from the | ||||||
2 | producer for the tax so paid and may take credit for such | ||||||
3 | amount from any monetary payment to the producer for the value | ||||||
4 | of products. To the extent that an operator required to collect | ||||||
5 | the tax imposed by this Act has actually collected that tax, | ||||||
6 | such tax is held in trust for the benefit of the State of | ||||||
7 | Illinois. | ||||||
8 | (d) In the event the operator fails to make payment of the | ||||||
9 | tax to the State as required herein, the operator shall be | ||||||
10 | liable for the tax. A producer shall be entitled to bring an | ||||||
11 | action against such operator to recover the amount of tax so | ||||||
12 | withheld together with penalties and interest which may have | ||||||
13 | accrued by failure to make such payment. A producer shall be | ||||||
14 | entitled to all attorney fees and court costs incurred in such | ||||||
15 | action. To the extent that a producer liable for the tax | ||||||
16 | imposed by this Act collects the tax, and any penalties and | ||||||
17 | interest, from an operator, such tax, penalties, and interest | ||||||
18 | are held in trust by the producer for the benefit of the State | ||||||
19 | of Illinois. | ||||||
20 | (e) When the title to any oil or gas severed from the earth | ||||||
21 | or water is in dispute and the operator of such oil or gas is | ||||||
22 | withholding payments on account of litigation, or for any other | ||||||
23 | reason, such operator is hereby authorized, empowered and | ||||||
24 | required to deduct from the gross amount thus held the amount | ||||||
25 | of the tax imposed and to make remittance thereof to the | ||||||
26 | Department as provided in this Section. |
| |||||||
| |||||||
1 | (f) An operator required to file a return and pay the tax | ||||||
2 | under this Section shall register with the Department. | ||||||
3 | Application for a certificate of registration shall be made to | ||||||
4 | the Department upon forms furnished by the Department and shall | ||||||
5 | contain any reasonable information the Department may require. | ||||||
6 | Upon receipt of the application for a certificate of | ||||||
7 | registration in proper form, the Department shall issue to the | ||||||
8 | applicant a certificate of registration. | ||||||
9 | (g) If oil or gas is transported off the production unit | ||||||
10 | where severed by the operator and sold to a purchaser or | ||||||
11 | refiner, the State shall have a lien on all the oil or gas | ||||||
12 | severed from the production unit in this State in the hands of | ||||||
13 | the operator, the first or any subsequent purchaser thereof, or | ||||||
14 | refiner to secure the payment of the tax. If a lien is filed by | ||||||
15 | the Department, the purchaser or refiner shall withhold from | ||||||
16 | the operator the amount of tax, penalty and interest identified | ||||||
17 | in the lien.
| ||||||
18 | (h) If any payment provided for in this Section exceeds the | ||||||
19 | operator's liabilities under this Act, as shown on an original | ||||||
20 | return, the operator may credit such excess payment against | ||||||
21 | liability subsequently to be remitted to the Department under | ||||||
22 | this Act, in accordance with reasonable rules adopted by the | ||||||
23 | Department. | ||||||
24 | (Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
| ||||||
25 | Section 25-45. The Motor Fuel Tax Law is amended by |
| |||||||
| |||||||
1 | changing Sections 2b, 5, 5a, and 13 as follows:
| ||||||
2 | (35 ILCS 505/2b) (from Ch. 120, par. 418b)
| ||||||
3 | Sec. 2b. Receiver's monthly return. In addition to the tax | ||||||
4 | collection and reporting responsibilities
imposed elsewhere in | ||||||
5 | this Act, a person who is required to pay the tax imposed
by | ||||||
6 | Section 2a of this Act shall pay the tax to the Department by | ||||||
7 | return showing
all fuel purchased, acquired or received and | ||||||
8 | sold, distributed or used during
the preceding calendar month
| ||||||
9 | including losses of fuel as the result of evaporation or | ||||||
10 | shrinkage due to
temperature variations, and such other | ||||||
11 | reasonable information as the
Department may require.
Losses of | ||||||
12 | fuel as the result of evaporation or shrinkage due to | ||||||
13 | temperature
variations may not exceed 1% of the total gallons | ||||||
14 | in
storage at the
beginning of the month, plus the receipts of | ||||||
15 | gallonage during the month, minus
the gallonage remaining in | ||||||
16 | storage at the end of the month. Any loss reported
that is in | ||||||
17 | excess of this amount shall be subject to the tax imposed by
| ||||||
18 | Section
2a of this Law.
On and after July 1, 2001, for each | ||||||
19 | 6-month period January through June, net
losses of fuel (for | ||||||
20 | each category of fuel that is required to be reported on a
| ||||||
21 | return) as the result of evaporation or shrinkage due to | ||||||
22 | temperature variations
may not exceed 1% of the total gallons | ||||||
23 | in storage at the beginning of each
January, plus the receipts | ||||||
24 | of gallonage each January through June, minus the
gallonage | ||||||
25 | remaining in storage at the end of each June. On and after July |
| |||||||
| |||||||
1 | 1,
2001, for each 6-month period July through December, net | ||||||
2 | losses of fuel (for
each category of fuel that is required to | ||||||
3 | be reported on a return) as the
result of evaporation or | ||||||
4 | shrinkage due to temperature variations may not exceed
1% of | ||||||
5 | the total gallons in storage at the beginning of each July, | ||||||
6 | plus the
receipts of gallonage each July through December, | ||||||
7 | minus the gallonage remaining
in storage at the end of each | ||||||
8 | December. Any net loss reported that is in
excess of this | ||||||
9 | amount shall be subject to the tax imposed by Section 2a of | ||||||
10 | this
Law. For purposes of this Section, "net loss" means the | ||||||
11 | number of gallons
gained through temperature variations minus | ||||||
12 | the number of gallons lost through
temperature variations or | ||||||
13 | evaporation for each of the respective 6-month
periods.
| ||||||
14 | The return shall be prescribed by the Department and shall | ||||||
15 | be filed
between the 1st and 20th days of each calendar month. | ||||||
16 | The Department may, in
its discretion, combine the returns | ||||||
17 | filed under this Section, Section 5, and
Section 5a of this | ||||||
18 | Act. The return must be accompanied by appropriate
| ||||||
19 | computer-generated magnetic media supporting schedule data in | ||||||
20 | the format
required by the Department, unless, as provided by | ||||||
21 | rule, the Department grants
an exception upon petition of a | ||||||
22 | taxpayer. If the return is filed timely, the
seller shall take | ||||||
23 | a discount of 2% through June 30, 2003 and 1.75%
thereafter | ||||||
24 | which is allowed to reimburse
the seller for
the expenses | ||||||
25 | incurred in keeping records, preparing and filing returns,
| ||||||
26 | collecting and remitting the tax and supplying data to the |
| |||||||
| |||||||
1 | Department on
request.
The discount, however, shall be | ||||||
2 | applicable only to the amount
of payment
which accompanies a | ||||||
3 | return that is filed timely in accordance with this
Section.
| ||||||
4 | If any payment provided for in this Section exceeds the | ||||||
5 | receiver's liabilities under this Act, as shown on an original | ||||||
6 | return, the Department may authorize the receiver to credit | ||||||
7 | such excess payment against liability subsequently to be | ||||||
8 | remitted to the Department under this Act, in accordance with | ||||||
9 | reasonable rules adopted by the Department. If the Department | ||||||
10 | subsequently determines that all or any part of the credit | ||||||
11 | taken was not actually due to the receiver, the receiver's | ||||||
12 | discount shall be reduced by an amount equal to the difference | ||||||
13 | between the discount as applied to the credit taken and that | ||||||
14 | actually due, and that receiver shall be liable for penalties | ||||||
15 | and interest on such difference. | ||||||
16 | (Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)
| ||||||
17 | (35 ILCS 505/5) (from Ch. 120, par. 421)
| ||||||
18 | Sec. 5. Distributor's monthly return. Except as | ||||||
19 | hereinafter provided, a person holding a valid unrevoked
| ||||||
20 | license to act as a distributor of motor fuel shall, between | ||||||
21 | the 1st and 20th
days of each calendar month, make return to | ||||||
22 | the Department, showing an itemized
statement of the number of | ||||||
23 | invoiced gallons of motor fuel of the types
specified in this | ||||||
24 | Section which were purchased, acquired, received, or exported | ||||||
25 | during the
preceding calendar month; the amount of such motor |
| |||||||
| |||||||
1 | fuel produced, refined,
compounded, manufactured, blended, | ||||||
2 | sold, distributed, exported, and used by the licensed
| ||||||
3 | distributor during the preceding calendar month; the amount of | ||||||
4 | such motor fuel
lost or destroyed during the preceding calendar | ||||||
5 | month; the amount of
such motor fuel on hand at the close of | ||||||
6 | business for such month; and such
other reasonable information | ||||||
7 | as the Department may require. If a
distributor's only | ||||||
8 | activities with respect to motor fuel are either: (1)
| ||||||
9 | production of
alcohol in quantities of less than 10,000 proof | ||||||
10 | gallons per year or (2)
blending alcohol in quantities of less | ||||||
11 | than 10,000 proof gallons per year
which such distributor has | ||||||
12 | produced, he shall file returns on an annual
basis with the | ||||||
13 | return for a given year being due by January 20 of the | ||||||
14 | following
year. Distributors whose total production of alcohol | ||||||
15 | (whether blended or
not) exceeds 10,000 proof gallons per year, | ||||||
16 | based on production during the
preceding (calendar) year or as | ||||||
17 | reasonably projected by the Department if
one calendar year's | ||||||
18 | record of production cannot be established, shall file
returns | ||||||
19 | between the 1st and 20th days of each calendar month as | ||||||
20 | hereinabove
provided.
| ||||||
21 | The types of motor fuel referred to in the preceding | ||||||
22 | paragraph are: (A)
All products commonly or commercially known | ||||||
23 | or sold as gasoline (including
casing-head and absorption or | ||||||
24 | natural gasoline), gasohol, motor benzol or motor
benzene | ||||||
25 | regardless of their classification or uses; and (B) all | ||||||
26 | combustible
gases which exist in a gaseous state at 60 degrees |
| |||||||
| |||||||
1 | Fahrenheit and at 14.7
pounds per square inch absolute | ||||||
2 | including, but not limited to, liquefied
petroleum gases used | ||||||
3 | for highway purposes; and (C) special fuel. Only those
| ||||||
4 | quantities of combustible gases (example (B) above) which are | ||||||
5 | used or sold by
the distributor to be used to propel motor | ||||||
6 | vehicles on the public highways, or which
are delivered into a | ||||||
7 | storage tank that is located at a facility that has
withdrawal | ||||||
8 | facilities which are readily accessible to and are capable of
| ||||||
9 | dispensing combustible gases into the fuel supply tanks of | ||||||
10 | motor vehicles,
shall be subject to return. For purposes of | ||||||
11 | this Section, a facility is considered to have withdrawal | ||||||
12 | facilities that are not "readily accessible to and capable of | ||||||
13 | dispensing combustible gases into the fuel supply tanks of | ||||||
14 | motor vehicles" only if the combustible gases are delivered | ||||||
15 | from: (i) a dispenser hose that is short enough so that it will | ||||||
16 | not reach the fuel supply tank of a motor vehicle or (ii) a | ||||||
17 | dispenser that is enclosed by a fence or other physical barrier | ||||||
18 | so that a vehicle cannot pull alongside the dispenser to permit | ||||||
19 | fueling. For the purposes of this Act, liquefied petroleum
| ||||||
20 | gases shall mean and include any material having a vapor | ||||||
21 | pressure not exceeding
that allowed for commercial propane | ||||||
22 | composed predominantly of the following
hydrocarbons, either | ||||||
23 | by themselves or as mixtures: Propane, Propylene, Butane
| ||||||
24 | (normal butane or iso-butane) and Butylene (including | ||||||
25 | isomers).
| ||||||
26 | In case of a sale of special fuel to someone other than a |
| |||||||
| |||||||
1 | licensed
distributor, or a licensed supplier, for a use other | ||||||
2 | than in motor vehicles,
the distributor shall show in
his | ||||||
3 | return the amount of invoiced gallons sold and the name and | ||||||
4 | address of the
purchaser
in addition to any other information | ||||||
5 | the Department may require.
| ||||||
6 | All special fuel sold or used for non-highway purposes must | ||||||
7 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
8 | In case of a tax-free sale, as provided in Section 6, of
| ||||||
9 | motor fuel which the distributor is required by this Section to | ||||||
10 | include in
his return to the Department, the distributor in his | ||||||
11 | return shall show:
(1) If the sale is made to another licensed | ||||||
12 | distributor the amount
sold and the name, address and license | ||||||
13 | number of the purchasing distributor;
(2) if the sale is made | ||||||
14 | to a person where delivery is made outside of this
State the | ||||||
15 | name and address of such purchaser and the point of delivery
| ||||||
16 | together with the date and amount delivered; (3) if the sale is | ||||||
17 | made to the
Federal Government or its instrumentalities the | ||||||
18 | amount sold; (4) if the sale is made to a
municipal corporation | ||||||
19 | owning and operating a local transportation
system for public | ||||||
20 | service in this State the name and address of such
purchaser, | ||||||
21 | and the amount sold, as evidenced by official forms of
| ||||||
22 | exemption certificates properly executed and furnished by such | ||||||
23 | purchaser;
(5) if the sale is made to a privately owned public | ||||||
24 | utility owning and
operating 2-axle vehicles designed and used | ||||||
25 | for transporting more than 7
passengers, which vehicles are | ||||||
26 | used as common carriers in general
transportation of |
| |||||||
| |||||||
1 | passengers, are not devoted to any specialized purpose
and are | ||||||
2 | operated entirely within the territorial limits of a single
| ||||||
3 | municipality or of any group of contiguous municipalities or in | ||||||
4 | a close
radius thereof, and the operations of which are subject | ||||||
5 | to the regulations
of the Illinois Commerce Commission, then | ||||||
6 | the name and address of such
purchaser and the amount sold as | ||||||
7 | evidenced by official forms of
exemption certificates properly | ||||||
8 | executed and furnished by the purchaser;
(6) if the product | ||||||
9 | sold is special fuel and if the sale is made to a
licensed | ||||||
10 | supplier under conditions which qualify the sale for tax | ||||||
11 | exemption
under Section 6 of this Act, the amount sold and the | ||||||
12 | name, address and
license number of the purchaser; and (7) if a | ||||||
13 | sale of special fuel is made
to
someone other than a licensed | ||||||
14 | distributor, or a licensed supplier, for a use other than in | ||||||
15 | motor vehicles, by making a
specific notation thereof on the | ||||||
16 | invoice or sales slip covering such sales and
obtaining such | ||||||
17 | supporting documentation as may be required by the Department.
| ||||||
18 | All special fuel sold or used for non-highway purposes must | ||||||
19 | have a dye
added
in accordance with Section 4d of this Law.
| ||||||
20 | A person whose license to act as a distributor of motor | ||||||
21 | fuel has been
revoked shall make a return to the Department | ||||||
22 | covering the period from the
date of the last return to the | ||||||
23 | date of the revocation of the license, which
return shall be | ||||||
24 | delivered to the Department not later than 10 days from the
| ||||||
25 | date of the revocation or termination of the license of such | ||||||
26 | distributor;
the return shall in all other respects be subject |
| |||||||
| |||||||
1 | to the same provisions
and conditions as returns by | ||||||
2 | distributors licensed under the provisions of
this Act.
| ||||||
3 | The records, waybills and supporting documents kept by | ||||||
4 | railroads and
other common carriers in the regular course of | ||||||
5 | business shall be prima
facie evidence of the contents and | ||||||
6 | receipt of cars or tanks covered by those
records, waybills or | ||||||
7 | supporting documents.
| ||||||
8 | If the Department has reason to believe and does believe | ||||||
9 | that the amount
shown on the return as purchased, acquired, | ||||||
10 | received, exported, sold, used, lost
or destroyed is incorrect, | ||||||
11 | or that
an amount of motor fuel of the types required by the | ||||||
12 | second paragraph of
this Section to be reported to the | ||||||
13 | Department
has not been correctly reported the Department shall | ||||||
14 | fix
an amount for
such receipt, sales, export, use, loss or | ||||||
15 | destruction according to its best
judgment and
information, | ||||||
16 | which amount so fixed by the Department shall be prima facie
| ||||||
17 | correct. All returns shall be made on forms prepared and | ||||||
18 | furnished by the
Department, and shall contain such other | ||||||
19 | information as the Department may
reasonably require. The | ||||||
20 | return must be accompanied by appropriate
computer-generated | ||||||
21 | magnetic media supporting schedule data in the format
required | ||||||
22 | by the Department, unless, as provided by rule, the Department | ||||||
23 | grants
an exception upon petition of a taxpayer.
All licensed | ||||||
24 | distributors shall report all losses of motor fuel sustained on
| ||||||
25 | account of fire, theft, spillage, spoilage, leakage, or any | ||||||
26 | other provable
cause when filing the return for the period |
| |||||||
| |||||||
1 | during which the loss occurred. If the distributor reports | ||||||
2 | losses due to fire or theft, then the distributor must include | ||||||
3 | fire department or police department reports and any other | ||||||
4 | documentation that the Department may require. The
mere making | ||||||
5 | of the report does not assure the allowance of the loss as a
| ||||||
6 | reduction in tax liability.
Losses of motor fuel as the result | ||||||
7 | of evaporation or shrinkage due to
temperature variations may | ||||||
8 | not exceed 1% of the total
gallons in
storage at the beginning | ||||||
9 | of the month, plus the receipts of gallonage during
the month, | ||||||
10 | minus the gallonage remaining in storage at the end of the | ||||||
11 | month.
Any loss reported that is in excess of 1% shall be | ||||||
12 | subject
to the
tax imposed by Section 2 of this Law.
On and | ||||||
13 | after July 1, 2001, for each 6-month period January through | ||||||
14 | June, net
losses of motor fuel (for each category of motor fuel | ||||||
15 | that is required to be
reported on a return) as the result of | ||||||
16 | evaporation or shrinkage due to
temperature variations may not | ||||||
17 | exceed 1% of the total gallons in storage at the
beginning of | ||||||
18 | each January, plus the receipts of gallonage each January | ||||||
19 | through
June, minus the gallonage remaining in storage at the | ||||||
20 | end of each June. On and
after July 1, 2001, for each 6-month | ||||||
21 | period July through December, net losses
of motor fuel (for | ||||||
22 | each category of motor fuel that is required to be reported
on | ||||||
23 | a return) as the result of evaporation or shrinkage due to | ||||||
24 | temperature
variations may not exceed 1% of the total gallons | ||||||
25 | in storage at the beginning
of each July, plus the receipts of | ||||||
26 | gallonage each July through December, minus
the gallonage |
| |||||||
| |||||||
1 | remaining in storage at the end of each December. Any net loss
| ||||||
2 | reported that is in excess of this amount shall be subject to | ||||||
3 | the tax imposed
by Section 2 of this Law. For purposes of this | ||||||
4 | Section, "net loss" means the
number of gallons gained through | ||||||
5 | temperature variations minus the number of
gallons lost through | ||||||
6 | temperature variations or evaporation for each of the
| ||||||
7 | respective 6-month periods.
| ||||||
8 | If any payment provided for in this Section exceeds the | ||||||
9 | distributor's liabilities under this Act, as shown on an | ||||||
10 | original return, the Department may authorize the distributor | ||||||
11 | to credit such excess payment against liability subsequently to | ||||||
12 | be remitted to the Department under this Act, in accordance | ||||||
13 | with reasonable rules adopted by the Department. If the | ||||||
14 | Department subsequently determines that all or any part of the | ||||||
15 | credit taken was not actually due to the distributor, the | ||||||
16 | distributor's discount shall be reduced by an amount equal to | ||||||
17 | the difference between the discount as applied to the credit | ||||||
18 | taken and that actually due, and that distributor shall be | ||||||
19 | liable for penalties and interest on such difference. | ||||||
20 | (Source: P.A. 96-1384, eff. 7-29-10.)
| ||||||
21 | (35 ILCS 505/5a) (from Ch. 120, par. 421a)
| ||||||
22 | Sec. 5a. Supplier's monthly return. A person holding a | ||||||
23 | valid unrevoked license to act as a
supplier of special fuel | ||||||
24 | shall, between the 1st and 20th days of each
calendar month, | ||||||
25 | make return to the Department showing an itemized
statement of |
| |||||||
| |||||||
1 | the number of invoiced gallons of special fuel
acquired, | ||||||
2 | received, purchased,
sold, exported, or used during the | ||||||
3 | preceding calendar month; the amount of special
fuel sold, | ||||||
4 | distributed, exported, and used by the licensed
supplier during | ||||||
5 | the preceding calendar month; the amount of special fuel
lost | ||||||
6 | or destroyed during the preceding
calendar month; the amount of | ||||||
7 | special fuel on hand at the close of
business for the preceding | ||||||
8 | calendar month; and such other reasonable
information as the | ||||||
9 | Department may require.
| ||||||
10 | A person whose license to act as a supplier of special fuel | ||||||
11 | has been
revoked shall make a return to the Department covering | ||||||
12 | the period from
the date of the last return to the date of the | ||||||
13 | revocation of the
license, which return shall be delivered to | ||||||
14 | the Department not later
than 10 days from the date of the | ||||||
15 | revocation or termination of the
license of such supplier. The | ||||||
16 | return shall in all other respects be
subject to the same | ||||||
17 | provisions and conditions as returns by suppliers
licensed | ||||||
18 | under this Act.
| ||||||
19 | The records, waybills and supporting documents kept by | ||||||
20 | railroads and
other common carriers in the regular course of | ||||||
21 | business shall be prima
facie evidence of the contents and | ||||||
22 | receipt of cars or tanks covered by
those records, waybills or | ||||||
23 | supporting documents.
| ||||||
24 | If the Department has reason to believe and does believe | ||||||
25 | that the
amount shown on the return as purchased, acquired, | ||||||
26 | received,
sold, exported, used, or lost is
incorrect, or that |
| |||||||
| |||||||
1 | an amount of special fuel of the type required by the
1st | ||||||
2 | paragraph of this Section to be reported to the Department by
| ||||||
3 | suppliers has not been correctly reported as
a
purchase, | ||||||
4 | receipt, sale, use, export, or loss the Department shall
fix an | ||||||
5 | amount for such
purchase, receipt, sale, use, export, or loss | ||||||
6 | according to its best
judgment and information,
which amount so | ||||||
7 | fixed by the Department shall be prima facie correct.
All | ||||||
8 | licensed suppliers shall report all losses of special fuel | ||||||
9 | sustained on
account of fire, theft, spillage, spoilage, | ||||||
10 | leakage, or any other provable
cause when filing the return for | ||||||
11 | the period during which the loss occurred.
If the supplier | ||||||
12 | reports losses due to fire or theft, then the supplier must | ||||||
13 | include fire department or police department reports and any | ||||||
14 | other documentation that the Department may require. The mere | ||||||
15 | making of the report does not assure the allowance of the loss | ||||||
16 | as a
reduction in tax liability. Losses of special fuel as the | ||||||
17 | result of evaporation
or shrinkage due to temperature | ||||||
18 | variations may not exceed 1% of the
total gallons in storage at | ||||||
19 | the beginning of the month, plus the receipts of
gallonage | ||||||
20 | during the month, minus the gallonage remaining in storage at | ||||||
21 | the end
of the month.
| ||||||
22 | Any loss reported that is in excess of 1% shall be
subject | ||||||
23 | to the
tax imposed by Section 2 of this Law.
On and after July | ||||||
24 | 1, 2001, for each 6-month period January through June, net
| ||||||
25 | losses of special fuel (for each category of special fuel that | ||||||
26 | is required to
be reported on a return) as the result of |
| |||||||
| |||||||
1 | evaporation or shrinkage due to
temperature variations may not | ||||||
2 | exceed 1% of the total gallons in storage at the
beginning of | ||||||
3 | each January, plus the receipts of gallonage each January | ||||||
4 | through
June, minus the gallonage remaining in storage at the | ||||||
5 | end of each June. On and
after July 1, 2001, for each 6-month | ||||||
6 | period July through December, net losses
of special fuel (for | ||||||
7 | each category of special fuel that is required to be
reported | ||||||
8 | on a return) as the result of evaporation or shrinkage due to
| ||||||
9 | temperature variations may not exceed 1% of the total gallons | ||||||
10 | in storage at the
beginning of each July, plus the receipts of | ||||||
11 | gallonage each July through
December, minus the gallonage | ||||||
12 | remaining in storage at the end of each December.
Any net loss | ||||||
13 | reported that is in excess of this amount shall be subject to | ||||||
14 | the
tax imposed by Section 2 of this Law. For purposes of this | ||||||
15 | Section, "net
loss" means the number of gallons gained through | ||||||
16 | temperature variations minus
the number of gallons lost through | ||||||
17 | temperature variations or evaporation for
each of the | ||||||
18 | respective 6-month periods.
| ||||||
19 | In case of a sale of special fuel to someone other than a | ||||||
20 | licensed
distributor or licensed supplier
for a use other than | ||||||
21 | in motor vehicles, the supplier shall show in his
return the | ||||||
22 | amount of invoiced gallons sold and the name and address of the
| ||||||
23 | purchaser
in addition to any other information the Department | ||||||
24 | may require.
| ||||||
25 | All special fuel sold or used for non-highway purposes must | ||||||
26 | have a dye
added in accordance with Section 4d of this Law.
|
| |||||||
| |||||||
1 | All returns shall be made on forms prepared and furnished | ||||||
2 | by the
Department and shall contain such other information as | ||||||
3 | the Department
may reasonably require.
The return must be | ||||||
4 | accompanied by appropriate computer-generated magnetic
media | ||||||
5 | supporting schedule data in the format required by the | ||||||
6 | Department,
unless, as provided by rule, the
Department grants | ||||||
7 | an exception upon petition of a taxpayer.
| ||||||
8 | In case of a tax-free sale, as provided in Section 6a, of | ||||||
9 | special
fuel which the supplier is required by this Section to | ||||||
10 | include in his
return to the Department, the supplier in his | ||||||
11 | return shall show: (1) If
the sale of special fuel is made to | ||||||
12 | the Federal Government or its
instrumentalities; (2) if the | ||||||
13 | sale of special fuel is made to a
municipal corporation owning | ||||||
14 | and operating a local transportation system
for public service | ||||||
15 | in this State, the name and address of such purchaser
and the | ||||||
16 | amount sold, as evidenced by official forms of exemption
| ||||||
17 | certificates properly executed and furnished by such | ||||||
18 | purchaser; (3) if
the sale of special fuel is made to a | ||||||
19 | privately owned public utility
owning and operating 2-axle | ||||||
20 | vehicles designed and used for transporting
more than 7 | ||||||
21 | passengers, which vehicles are used as common carriers in
| ||||||
22 | general transportation of passengers, are not devoted to any | ||||||
23 | specialized
purpose and are operated entirely within the | ||||||
24 | territorial limits of a
single municipality or of any group of | ||||||
25 | contiguous municipalities or in a
close radius thereof, and the | ||||||
26 | operations of which are subject to the
regulations of the |
| |||||||
| |||||||
1 | Illinois Commerce Commission, then the name and
address of such | ||||||
2 | purchaser and the amount sold, as evidenced by official
forms | ||||||
3 | of exemption certificates properly executed and furnished by | ||||||
4 | such
purchaser; (4) if the product sold is special fuel and if | ||||||
5 | the sale
is made to a licensed supplier or to a licensed | ||||||
6 | distributor under
conditions which qualify the sale for tax | ||||||
7 | exemption under Section 6a of
this Act, the amount sold and the | ||||||
8 | name, address and license number of
such purchaser; (5) if a | ||||||
9 | sale of special fuel is made to a person where
delivery is made | ||||||
10 | outside of this State, the name and address of such
purchaser | ||||||
11 | and the point of delivery together with the date and amount of
| ||||||
12 | invoiced gallons delivered; and (6) if a sale of special fuel | ||||||
13 | is made to
someone other than a licensed distributor or a | ||||||
14 | licensed supplier, for a use
other than in motor vehicles, by | ||||||
15 | making a
specific notation thereof on the invoice or sales slip | ||||||
16 | covering that sale
and obtaining such supporting documentation | ||||||
17 | as may be required by the
Department.
| ||||||
18 | All special fuel sold or used for non-highway purposes must | ||||||
19 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
20 | If any payment provided for in this Section exceeds the | ||||||
21 | supplier's liabilities under this Act, as shown on an original | ||||||
22 | return, the Department may authorize the supplier to credit | ||||||
23 | such excess payment against liability subsequently to be | ||||||
24 | remitted to the Department under this Act, in accordance with | ||||||
25 | reasonable rules adopted by the Department. If the Department | ||||||
26 | subsequently determines that all or any part of the credit |
| |||||||
| |||||||
1 | taken was not actually due to the supplier, the supplier's | ||||||
2 | discount shall be reduced by an amount equal to the difference | ||||||
3 | between the discount as applied to the credit taken and that | ||||||
4 | actually due, and that supplier shall be liable for penalties | ||||||
5 | and interest on such difference. | ||||||
6 | (Source: P.A. 96-1384, eff. 7-29-10.)
| ||||||
7 | (35 ILCS 505/13) (from Ch. 120, par. 429)
| ||||||
8 | Sec. 13. Refund of tax paid. Any person other than a | ||||||
9 | distributor or
supplier, who loses motor
fuel through any cause | ||||||
10 | or uses motor fuel (upon which he has paid the amount
required | ||||||
11 | to be collected under Section 2 of this Act) for any purpose | ||||||
12 | other
than operating a motor vehicle upon the public highways | ||||||
13 | or waters, shall be
reimbursed and repaid the amount so paid.
| ||||||
14 | Any person who purchases motor fuel in Illinois and uses | ||||||
15 | that motor fuel
in another state and that other state imposes a | ||||||
16 | tax on the use of such
motor fuel shall be reimbursed and | ||||||
17 | repaid the amount of Illinois tax paid
under Section 2 of this | ||||||
18 | Act on the motor fuel used in such other state.
Reimbursement | ||||||
19 | and repayment shall be made by the Department upon receipt of
| ||||||
20 | adequate proof of taxes directly paid to another state and the | ||||||
21 | amount of motor fuel
used in that state.
| ||||||
22 | Claims based in whole or in part on taxes paid to another | ||||||
23 | state shall include (i) a certified copy of the tax return | ||||||
24 | filed with such other state by the claimant; (ii) a copy of | ||||||
25 | either the cancelled check paying the tax due on such return, |
| |||||||
| |||||||
1 | or a receipt acknowledging payment of the tax due on such tax | ||||||
2 | return; and (iii) such other information as the Department may | ||||||
3 | reasonably require. This paragraph shall not apply to taxes | ||||||
4 | paid on returns filed under Section 13a.3 of this Act. | ||||||
5 | Any person who purchases motor fuel use tax decals as | ||||||
6 | required by Section 13a.4 and pays an amount of fees for such | ||||||
7 | decals that exceeds the amount due shall be reimbursed and | ||||||
8 | repaid the amount of the decal fees that are deemed by the | ||||||
9 | department to be in excess of the amount due. Alternatively, | ||||||
10 | any person who purchases motor fuel use tax decals as required | ||||||
11 | by Section 13a.4 may credit any excess decal payment verified | ||||||
12 | by the Department against amounts subsequently due for the | ||||||
13 | purchase of additional decals, until such time as no excess | ||||||
14 | payment remains. | ||||||
15 | Claims for such reimbursement must be made to the | ||||||
16 | Department of Revenue,
duly verified by the claimant (or by the | ||||||
17 | claimant's legal
representative if the claimant has died or | ||||||
18 | become a person under legal
disability), upon forms prescribed | ||||||
19 | by the Department. The claim must state
such facts relating to | ||||||
20 | the purchase, importation, manufacture or production
of the | ||||||
21 | motor fuel by the claimant as the Department may deem | ||||||
22 | necessary, and
the time when, and the circumstances of its loss | ||||||
23 | or the specific purpose
for which it was used (as the case may | ||||||
24 | be), together with such other
information as the Department may | ||||||
25 | reasonably require. No claim based upon
idle time shall be | ||||||
26 | allowed. Claims for reimbursement for overpayment of decal fees |
| |||||||
| |||||||
1 | shall be made to the Department of Revenue, duly verified by | ||||||
2 | the claimant (or by the claimant's legal representative if the | ||||||
3 | claimant has died or become a person under legal disability), | ||||||
4 | upon forms prescribed by the Department. The claim shall state | ||||||
5 | facts relating to the overpayment of decal fees, together with | ||||||
6 | such other information as the Department may reasonably | ||||||
7 | require. Claims for reimbursement of overpayment of decal fees | ||||||
8 | paid on or after January 1, 2011 must be filed not later than | ||||||
9 | one year after the date on which the fees were paid by the | ||||||
10 | claimant. If it is determined that the Department should | ||||||
11 | reimburse a claimant for overpayment of decal fees, the | ||||||
12 | Department shall first apply the amount of such refund against | ||||||
13 | any tax or penalty or interest due by the claimant under | ||||||
14 | Section 13a of this Act.
| ||||||
15 | Claims for full reimbursement for taxes paid on or before | ||||||
16 | December 31,
1999 must be filed not later than one year after | ||||||
17 | the date on which
the tax was paid by the claimant.
If, | ||||||
18 | however, a claim for such reimbursement otherwise meeting the
| ||||||
19 | requirements of this Section is filed more than one year but | ||||||
20 | less than 2
years after that date, the claimant shall be | ||||||
21 | reimbursed at the rate of 80%
of the amount to which he would | ||||||
22 | have been entitled if his claim had been
timely filed.
| ||||||
23 | Claims for full reimbursement for taxes paid on or after | ||||||
24 | January 1, 2000
must be filed not later than 2 years after the | ||||||
25 | date on which the tax was paid
by the claimant.
| ||||||
26 | The Department may make such investigation of the |
| |||||||
| |||||||
1 | correctness of the
facts stated in such claims as it deems | ||||||
2 | necessary. When the Department has
approved any such claim, it | ||||||
3 | shall pay to the claimant (or to the claimant's
legal | ||||||
4 | representative, as such if the claimant has died or become a | ||||||
5 | person
under legal disability) the reimbursement provided in
| ||||||
6 | this Section, out of any moneys appropriated to it for that | ||||||
7 | purpose.
| ||||||
8 | Any distributor or supplier who has paid the tax imposed by | ||||||
9 | Section 2
of this Act upon motor fuel lost or used by such | ||||||
10 | distributor or supplier
for any purpose other than operating a | ||||||
11 | motor vehicle upon the public
highways or waters may file a | ||||||
12 | claim for credit or refund to recover the
amount so paid. Such | ||||||
13 | claims shall be filed on forms prescribed by the
Department. | ||||||
14 | Such claims shall be made to the Department, duly verified by | ||||||
15 | the
claimant (or by the claimant's legal representative if
the | ||||||
16 | claimant has died or become a person under legal disability), | ||||||
17 | upon
forms prescribed by the Department. The claim shall state | ||||||
18 | such facts
relating to the purchase, importation, manufacture | ||||||
19 | or production of the
motor fuel by the claimant as the | ||||||
20 | Department may deem necessary and the
time when the loss or | ||||||
21 | nontaxable use occurred, and the circumstances of its
loss or | ||||||
22 | the specific purpose for which it was used (as the case may | ||||||
23 | be),
together with such other information as the Department may | ||||||
24 | reasonably
require. Claims must be filed not later than one | ||||||
25 | year after the
date on which the tax was paid by the claimant.
| ||||||
26 | The Department may make such investigation of the |
| |||||||
| |||||||
1 | correctness of the
facts stated in such claims as it deems | ||||||
2 | necessary. When the Department
approves a claim, the Department | ||||||
3 | shall issue a refund or credit memorandum
as requested by the | ||||||
4 | taxpayer, to the distributor or supplier who made the
payment | ||||||
5 | for which the refund or credit is being given or, if the
| ||||||
6 | distributor or supplier has died or become incompetent, to such
| ||||||
7 | distributor's or supplier's legal representative, as such. The | ||||||
8 | amount of
such credit memorandum shall be credited against any | ||||||
9 | tax due or to become
due under this Act from the distributor or | ||||||
10 | supplier who made the payment
for which credit has been given.
| ||||||
11 | Any credit or refund that is allowed under this Section | ||||||
12 | shall bear
interest at the rate and in the manner specified in | ||||||
13 | the Uniform Penalty
and Interest Act.
| ||||||
14 | In case the distributor or supplier requests and the
| ||||||
15 | Department determines that the claimant is entitled to a
| ||||||
16 | refund, such refund shall be made only from such appropriation | ||||||
17 | as may be
available for that purpose. If it appears unlikely | ||||||
18 | that the amount
appropriated would permit everyone having a | ||||||
19 | claim allowed during the period
covered by such appropriation | ||||||
20 | to elect to receive a cash refund, the
Department, by rule or | ||||||
21 | regulation, shall provide for the payment of refunds
in | ||||||
22 | hardship cases and shall define what types of cases qualify as | ||||||
23 | hardship
cases.
| ||||||
24 | In any case in which there has been an erroneous refund of | ||||||
25 | tax or fees payable
under
this Section, a notice of tax | ||||||
26 | liability may be issued at any time within 3
years from the |
| |||||||
| |||||||
1 | making of that refund, or within 5 years from the making of | ||||||
2 | that
refund if it appears that any part of the refund was | ||||||
3 | induced by fraud or the
misrepresentation of material fact. The | ||||||
4 | amount of any proposed assessment
set forth by the Department | ||||||
5 | shall be limited to the amount of the erroneous
refund.
| ||||||
6 | If no tax is due and no proceeding is pending to determine | ||||||
7 | whether such
distributor or supplier is indebted to the | ||||||
8 | Department for tax,
the credit memorandum so issued may be | ||||||
9 | assigned and set over by the lawful
holder thereof, subject to | ||||||
10 | reasonable rules of the Department, to any other
licensed | ||||||
11 | distributor or supplier who is subject to this Act, and
the | ||||||
12 | amount thereof applied by the Department against any tax due or | ||||||
13 | to
become due under this Act from such assignee.
| ||||||
14 | If the payment for which the distributor's or supplier's
| ||||||
15 | claim is filed is held in the protest fund of the State | ||||||
16 | Treasury during
the pendency of the claim for credit | ||||||
17 | proceedings pursuant to the order of
the court in accordance | ||||||
18 | with Section 2a of the State Officers and Employees
Money | ||||||
19 | Disposition Act and if it is determined by the Department or by | ||||||
20 | the
final order of a reviewing court under the Administrative | ||||||
21 | Review Law that
the claimant is entitled to all or a part of | ||||||
22 | the credit claimed, the
claimant, instead of receiving a credit | ||||||
23 | memorandum from the Department,
shall receive a cash refund | ||||||
24 | from the protest fund as provided for in
Section 2a of the | ||||||
25 | State Officers and Employees Money Disposition Act.
| ||||||
26 | If any person ceases to be licensed as a distributor or
|
| |||||||
| |||||||
1 | supplier while still holding an unused credit memorandum issued | ||||||
2 | under this
Act, such person may, at his election (instead of | ||||||
3 | assigning the credit
memorandum to a licensed distributor or | ||||||
4 | licensed
supplier under this Act), surrender such unused credit | ||||||
5 | memorandum to the
Department and receive a refund of the amount | ||||||
6 | to which such person is entitled.
| ||||||
7 | For claims based upon taxes paid on or before December 31, | ||||||
8 | 2000, a claim based upon the use of undyed diesel fuel shall | ||||||
9 | not be allowed
except (i) if allowed under the following | ||||||
10 | paragraph or (ii) for
undyed diesel fuel used by a commercial | ||||||
11 | vehicle, as that term is defined in
Section 1-111.8 of the | ||||||
12 | Illinois Vehicle Code, for any purpose other than
operating the | ||||||
13 | commercial vehicle upon the public highways and unlicensed
| ||||||
14 | commercial vehicles operating on private property. Claims | ||||||
15 | shall be
limited to commercial vehicles
that are operated for | ||||||
16 | both highway purposes and any purposes other than
operating | ||||||
17 | such vehicles upon the public highways.
| ||||||
18 | For claims based upon taxes paid on or after January 1, | ||||||
19 | 2000, a claim based
upon the use of undyed diesel fuel shall | ||||||
20 | not be allowed except (i) if allowed
under the preceding | ||||||
21 | paragraph or (ii) for claims for the following:
| ||||||
22 | (1) Undyed diesel fuel used (i) in a manufacturing | ||||||
23 | process, as defined in
Section 2-45 of the Retailers' | ||||||
24 | Occupation Tax Act, wherein the undyed diesel
fuel becomes | ||||||
25 | a component part of a product or by-product, other than | ||||||
26 | fuel or
motor fuel, when the use of dyed diesel fuel in |
| |||||||
| |||||||
1 | that manufacturing process
results in a product that is | ||||||
2 | unsuitable for its intended use or (ii)
for testing | ||||||
3 | machinery and equipment in a
manufacturing process, as | ||||||
4 | defined in Section 2-45 of the Retailers' Occupation
Tax | ||||||
5 | Act, wherein the testing takes place on private property.
| ||||||
6 | (2) Undyed diesel fuel used by a manufacturer on | ||||||
7 | private property in the
research and development, as | ||||||
8 | defined in Section 1.29, of machinery or equipment
intended | ||||||
9 | for manufacture.
| ||||||
10 | (3) Undyed diesel fuel used by a single unit | ||||||
11 | self-propelled agricultural
fertilizer implement, designed | ||||||
12 | for on and off road use, equipped with flotation
tires and | ||||||
13 | specially adapted for the application of plant food | ||||||
14 | materials or
agricultural chemicals.
| ||||||
15 | (4) Undyed diesel fuel used by a commercial motor | ||||||
16 | vehicle for any purpose
other than operating the commercial | ||||||
17 | motor vehicle upon the public highways.
Claims shall be | ||||||
18 | limited to commercial motor vehicles that are operated for | ||||||
19 | both
highway purposes and any purposes other than operating | ||||||
20 | such vehicles upon the
public highways.
| ||||||
21 | (5) Undyed diesel fuel used by a unit of local | ||||||
22 | government in its operation
of an airport if the undyed | ||||||
23 | diesel fuel is used directly in airport operations
on | ||||||
24 | airport property.
| ||||||
25 | (6) Undyed diesel fuel used by refrigeration units that | ||||||
26 | are permanently
mounted to a semitrailer, as defined in |
| |||||||
| |||||||
1 | Section 1.28 of this Law, wherein the
refrigeration units | ||||||
2 | have a fuel supply system dedicated solely for the
| ||||||
3 | operation of the refrigeration units.
| ||||||
4 | (7) Undyed diesel fuel used by power take-off equipment | ||||||
5 | as defined in
Section 1.27 of this Law. | ||||||
6 | (8) Beginning on the effective date of this amendatory | ||||||
7 | Act of the 94th General Assembly, undyed diesel fuel used | ||||||
8 | by tugs and spotter equipment to shift vehicles or parcels | ||||||
9 | on both private and airport property. Any claim under this | ||||||
10 | item (8) may be made only by a claimant that owns tugs and | ||||||
11 | spotter equipment and operates that equipment on both | ||||||
12 | private and airport property. The aggregate of all credits | ||||||
13 | or refunds resulting from claims filed under this item (8) | ||||||
14 | by a claimant in any calendar year may not exceed $100,000. | ||||||
15 | A claim may not be made under this item (8) by the same | ||||||
16 | claimant more often than once each quarter. For the | ||||||
17 | purposes of this item (8), "tug" means a vehicle designed | ||||||
18 | for use on airport property that shifts custom-designed | ||||||
19 | containers of parcels from loading docks to aircraft, and | ||||||
20 | "spotter equipment" means a vehicle designed for use on | ||||||
21 | both private and airport property that shifts trailers | ||||||
22 | containing parcels between staging areas and loading | ||||||
23 | docks.
| ||||||
24 | Any person who has paid the tax imposed by Section 2 of | ||||||
25 | this Law upon undyed
diesel fuel that is unintentionally mixed | ||||||
26 | with dyed diesel fuel and who owns or
controls the mixture of |
| |||||||
| |||||||
1 | undyed diesel fuel and dyed diesel fuel may file a
claim for | ||||||
2 | refund to recover the amount paid. The amount of undyed diesel | ||||||
3 | fuel
unintentionally mixed must equal 500 gallons or more. Any | ||||||
4 | claim for refund of
unintentionally mixed undyed diesel fuel | ||||||
5 | and dyed diesel fuel shall be
supported by documentation | ||||||
6 | showing the date and location of the unintentional
mixing, the | ||||||
7 | number of gallons involved, the disposition of the mixed diesel
| ||||||
8 | fuel, and any other information that the Department may | ||||||
9 | reasonably require.
Any unintentional mixture of undyed diesel | ||||||
10 | fuel and dyed diesel fuel shall be
sold or used only for | ||||||
11 | non-highway purposes.
| ||||||
12 | The Department shall
promulgate regulations establishing | ||||||
13 | specific limits on the amount of undyed
diesel fuel that may be | ||||||
14 | claimed for refund.
| ||||||
15 | For purposes of claims for refund, "loss" means the | ||||||
16 | reduction of motor
fuel resulting from fire, theft, spillage, | ||||||
17 | spoilage, leakage, or any other
provable cause, but does not | ||||||
18 | include a reduction resulting from evaporation, or
shrinkage | ||||||
19 | due to temperature variations. In the case of losses due to | ||||||
20 | fire or theft, the claimant must include fire department or | ||||||
21 | police department reports and any other documentation that the | ||||||
22 | Department may require.
| ||||||
23 | (Source: P.A. 96-1384, eff. 7-29-10.)
| ||||||
24 | Section 25-50. The Gas Revenue Tax Act is amended by | ||||||
25 | changing Sections 2a.2 and 3 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 615/2a.2) (from Ch. 120, par. 467.17a.2)
| ||||||
2 | Sec. 2a.2. Annual return, collection and payment. - A | ||||||
3 | return with
respect to the tax imposed by Section 2a.1 shall be | ||||||
4 | made by every person
for any taxable period for which such | ||||||
5 | person is liable for such tax.
Such return shall be made on | ||||||
6 | such forms as the Department shall
prescribe and shall contain | ||||||
7 | the following information:
| ||||||
8 | 1. Taxpayer's name;
| ||||||
9 | 2. Address of taxpayer's principal place of business, | ||||||
10 | and address of
the principal place of business (if that is | ||||||
11 | a different address) from
which the taxpayer engages in the | ||||||
12 | business of distributing, supplying,
furnishing or selling | ||||||
13 | gas in this State;
| ||||||
14 | 3. The total proprietary capital and total long-term | ||||||
15 | debt as of the
beginning and end of the taxable period as | ||||||
16 | set forth on the balance
sheets included in the taxpayer's | ||||||
17 | annual report to the Illinois Commerce
Commission for the | ||||||
18 | taxable period;
| ||||||
19 | 4. The taxpayer's base income allocable to Illinois | ||||||
20 | under Sections
301 and 304(a) of the "Illinois Income Tax | ||||||
21 | Act", for the period covered
by the return;
| ||||||
22 | 5. The amount of tax due for the taxable period | ||||||
23 | (computed on the
basis of the amounts set forth in Items 3 | ||||||
24 | and 4); and
| ||||||
25 | 6. Such other reasonable information as may be required |
| |||||||
| |||||||
1 | by forms or
regulations prescribed by the Department.
| ||||||
2 | The returns prescribed by this Section shall be due and | ||||||
3 | shall be
filed with the Department not later than the 15th day | ||||||
4 | of the third
month following the close of the taxable period. | ||||||
5 | The taxpayer making
the return herein provided for shall, at | ||||||
6 | the time of making such return,
pay to the Department the | ||||||
7 | remaining amount of tax herein imposed and due
for the taxable | ||||||
8 | period. Each taxpayer shall make estimated quarterly
payments | ||||||
9 | on the 15th day of the third, sixth, ninth and twelfth months | ||||||
10 | of
each taxable period. Such estimated payments shall be 25% of | ||||||
11 | the tax
liability for the immediately preceding taxable period | ||||||
12 | or the tax liability
that would have been imposed in the | ||||||
13 | immediately preceding taxable period if
this amendatory Act of | ||||||
14 | 1979 had been in effect. All moneys received by the
Department | ||||||
15 | under Sections 2a.1 and 2a.2 shall be paid into the Personal
| ||||||
16 | Property Tax Replacement Fund in the State Treasury.
| ||||||
17 | If any payment provided for in this Section exceeds the | ||||||
18 | taxpayer's liabilities under this Act, as shown on an original | ||||||
19 | return, the Department may authorize the taxpayer to credit | ||||||
20 | such excess payment against liability subsequently to be | ||||||
21 | remitted to the Department under this Act, in accordance with | ||||||
22 | reasonable rules adopted by the Department. | ||||||
23 | (Source: P.A. 87-205.)
| ||||||
24 | (35 ILCS 615/3) (from Ch. 120, par. 467.18)
| ||||||
25 | Sec. 3. Return of taxpayer; payment of tax. Except as |
| |||||||
| |||||||
1 | provided in this Section, on or before the 15th
day of each | ||||||
2 | month, each taxpayer shall make a return to the Department
for | ||||||
3 | the preceding calendar month, stating:
| ||||||
4 | 1. His name;
| ||||||
5 | 2. The address of his principal place of business, and | ||||||
6 | the address
of the principal place of business (if that is | ||||||
7 | a different address) from
which he engages in the business | ||||||
8 | of distributing, supplying, furnishing
or selling gas in | ||||||
9 | this State;
| ||||||
10 | 3. The total number of therms for which payment was | ||||||
11 | received by him
from customers during the preceding | ||||||
12 | calendar month and upon the basis of
which the tax is | ||||||
13 | imposed;
| ||||||
14 | 4. Gross receipts which were received by him from
| ||||||
15 | customers during the preceding calendar month from such | ||||||
16 | business, including
budget plan and other customer-owned | ||||||
17 | amounts applied during such month in
payment of charges | ||||||
18 | includible in gross receipts, and upon the basis of
which | ||||||
19 | the tax is imposed;
| ||||||
20 | 5. Amount of tax (computed upon Items 3 and 4);
| ||||||
21 | 6. Such other reasonable information as the Department | ||||||
22 | may require.
| ||||||
23 | In making such return the taxpayer may use any reasonable | ||||||
24 | method to
derive reportable "therms" and "gross receipts" from | ||||||
25 | his billing and
payment records.
| ||||||
26 | Any taxpayer required to make payments under this Section |
| |||||||
| |||||||
1 | may make the
payments by electronic funds transfer. The | ||||||
2 | Department shall adopt rules
necessary to effectuate a program | ||||||
3 | of electronic funds transfer.
| ||||||
4 | If the taxpayer's average monthly tax liability to the | ||||||
5 | Department
does not exceed $100.00, the Department may | ||||||
6 | authorize his returns to be
filed on a quarter annual basis, | ||||||
7 | with the return for January, February
and March of a given year | ||||||
8 | being due by April 30 of such year; with the
return for April, | ||||||
9 | May and June of a given year being due by July 31 of
such year; | ||||||
10 | with the return for July, August and September of a given
year | ||||||
11 | being due by October 31 of such year, and with the return for
| ||||||
12 | October, November and December of a given year being due by | ||||||
13 | January 31
of the following year.
| ||||||
14 | If the taxpayer's average monthly tax liability to the | ||||||
15 | Department
does not exceed $20.00, the Department may authorize | ||||||
16 | his returns to be
filed on an annual basis, with the return for | ||||||
17 | a given year being due by
January 31 of the following year.
| ||||||
18 | Such quarter annual and annual returns, as to form and | ||||||
19 | substance,
shall be subject to the same requirements as monthly | ||||||
20 | returns.
| ||||||
21 | Notwithstanding any other provision in this Act concerning | ||||||
22 | the time
within which a taxpayer may file his return, in the | ||||||
23 | case of any taxpayer
who ceases to engage in a kind of business | ||||||
24 | which makes him responsible
for filing returns under this Act, | ||||||
25 | such taxpayer shall file a final
return under this Act with the | ||||||
26 | Department not more than one month after
discontinuing such |
| |||||||
| |||||||
1 | business.
| ||||||
2 | In making such return the taxpayer shall determine the | ||||||
3 | value of any
reportable consideration other than money received | ||||||
4 | by him and shall include
such value in his return. Such | ||||||
5 | determination shall be subject to review
and revision by the | ||||||
6 | Department in the same manner as is provided in this
Act for | ||||||
7 | the correction of returns.
| ||||||
8 | Each taxpayer whose average monthly liability to the | ||||||
9 | Department under
this Act was $10,000 or more during the | ||||||
10 | preceding calendar year, excluding
the month of highest | ||||||
11 | liability and the month of lowest liability in such
calendar | ||||||
12 | year, and who is not operated by a unit of local government, | ||||||
13 | shall
make estimated payments to the Department on or before | ||||||
14 | the 7th, 15th, 22nd
and last day of the month during which tax | ||||||
15 | liability to the Department is
incurred in an amount not less | ||||||
16 | than the lower of either 22.5% of the
taxpayer's actual tax | ||||||
17 | liability for the month or 25% of the taxpayer's
actual tax | ||||||
18 | liability for the same calendar month of the preceding year.
| ||||||
19 | The amount of such quarter monthly payments shall be credited | ||||||
20 | against the
final tax liability of the taxpayer's return for | ||||||
21 | that month. Any
outstanding credit, approved by the Department, | ||||||
22 | arising from the
taxpayer's overpayment of its final tax | ||||||
23 | liability
for any month may be applied to reduce the amount of | ||||||
24 | any subsequent quarter
monthly payment or credited against the | ||||||
25 | final tax liability of the taxpayer's
return for any subsequent | ||||||
26 | month. If any quarter monthly payment is not
paid at the time |
| |||||||
| |||||||
1 | or in the amount required by this Section, the taxpayer
shall | ||||||
2 | be liable for penalty and interest on the difference between | ||||||
3 | the minimum
amount due as a payment and the amount of such | ||||||
4 | payment actually and timely
paid, except insofar as the | ||||||
5 | taxpayer has previously made payments for that
month to the | ||||||
6 | Department in excess of the minimum payments previously due.
| ||||||
7 | If the Director finds that the information required for the | ||||||
8 | making of
an accurate return cannot reasonably be compiled by a | ||||||
9 | taxpayer within 15
days after the close of the calendar month | ||||||
10 | for which a return is to be
made, he may grant an extension of | ||||||
11 | time for the filing of such return
for a period of not to | ||||||
12 | exceed 31 calendar days. The granting of such an
extension may | ||||||
13 | be conditioned upon the deposit by the taxpayer with the
| ||||||
14 | Department of an amount of money not exceeding the amount | ||||||
15 | estimated by
the Director to be due with the return so | ||||||
16 | extended. All such deposits,
including any made before the | ||||||
17 | effective date of this amendatory Act of
1975 with the | ||||||
18 | Department, shall be credited against the taxpayer's
| ||||||
19 | liabilities under this Act. If any such deposit exceeds the | ||||||
20 | taxpayer's
present and probable future liabilities under this | ||||||
21 | Act, the Department
shall issue to the taxpayer a credit | ||||||
22 | memorandum, which may be assigned
by the taxpayer to a similar | ||||||
23 | taxpayer under this Act, in accordance with
reasonable rules | ||||||
24 | and regulations to be prescribed by the Department.
| ||||||
25 | The taxpayer making the return provided for in this Section | ||||||
26 | shall, at
the time of making such return, pay to the Department |
| |||||||
| |||||||
1 | the amount of tax
imposed by this Act. All moneys received by | ||||||
2 | the Department under this
Act shall be paid into the General | ||||||
3 | Revenue Fund in the State Treasury,
except as otherwise | ||||||
4 | provided.
| ||||||
5 | If any payment provided for in this Section exceeds the | ||||||
6 | taxpayer's liabilities under this Act, as shown on an original | ||||||
7 | return, the Department may authorize the taxpayer to credit | ||||||
8 | such excess payment against liability subsequently to be | ||||||
9 | remitted to the Department under this Act, in accordance with | ||||||
10 | reasonable rules adopted by the Department. | ||||||
11 | (Source: P.A. 90-16, eff. 6-16-97.)
| ||||||
12 | Section 25-55. The Public Utilities Revenue Act is amended | ||||||
13 | by changing Section 2a.2 as follows:
| ||||||
14 | (35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
| ||||||
15 | Sec. 2a.2. Annual return, collection and payment. A return | ||||||
16 | with
respect to the tax imposed by Section 2a.1 shall be made | ||||||
17 | by every person
for any taxable period for which such person is | ||||||
18 | liable for such tax.
Such return shall be made on such forms as | ||||||
19 | the Department shall
prescribe and shall contain the following | ||||||
20 | information:
| ||||||
21 | 1. Taxpayer's name;
| ||||||
22 | 2. Address of taxpayer's principal place of business, | ||||||
23 | and address of
the principal place of business (if that is | ||||||
24 | a different address) from
which the taxpayer engages in the |
| |||||||
| |||||||
1 | business of distributing electricity in this State;
| ||||||
2 | 3. The total equity, in the case of electric | ||||||
3 | cooperatives, in
the annual reports filed with the Rural | ||||||
4 | Utilities Service
for the taxable period;
| ||||||
5 | 3a. The total kilowatt-hours of electricity | ||||||
6 | distributed by a taxpayer,
other than an electric | ||||||
7 | cooperative,
in this State for the taxable period covered | ||||||
8 | by the return;
| ||||||
9 | 4. The amount of tax due for the taxable period | ||||||
10 | (computed on
the
basis of the amounts set forth in Items 3 | ||||||
11 | and 3a); and
| ||||||
12 | 5. Such other reasonable information as may be required | ||||||
13 | by
forms or
regulations prescribed by the Department.
| ||||||
14 | The returns prescribed by this Section shall be due and | ||||||
15 | shall be
filed with the Department not later than the 15th day | ||||||
16 | of the third
month following the close of the taxable period. | ||||||
17 | The taxpayer making
the return herein provided for shall, at | ||||||
18 | the time of making such return,
pay to the Department the | ||||||
19 | remaining amount of tax herein imposed and due
for the taxable | ||||||
20 | period. Each taxpayer shall make estimated quarterly
payments | ||||||
21 | on the 15th day of the third, sixth,
ninth and twelfth months | ||||||
22 | of each
taxable period. Such estimated payments shall be 25% of | ||||||
23 | the tax
liability for the immediately preceding taxable period | ||||||
24 | or the tax
liability that would have been imposed in the | ||||||
25 | immediately preceding
taxable period if this amendatory Act of | ||||||
26 | 1979 had been in effect. All
moneys received by the Department |
| |||||||
| |||||||
1 | under Sections 2a.1 and 2a.2 shall
be paid into the
Personal | ||||||
2 | Property Tax Replacement Fund in the State Treasury.
| ||||||
3 | If any payment provided for in this Section exceeds the | ||||||
4 | taxpayer's liabilities under this Act, as shown on an original | ||||||
5 | return, the taxpayer may credit such excess payment against | ||||||
6 | liability subsequently to be remitted to the Department under | ||||||
7 | this Act, in accordance with reasonable rules adopted by the | ||||||
8 | Department. | ||||||
9 | (Source: P.A. 90-561, eff. 1-1-98.)
| ||||||
10 | Section 25-60. The Telecommunications Excise Tax Act is | ||||||
11 | amended by changing Section 6 as follows:
| ||||||
12 | (35 ILCS 630/6) (from Ch. 120, par. 2006)
| ||||||
13 | Sec. 6. Returns; payments. Except as provided hereinafter | ||||||
14 | in this Section, on or before
the last day of each month, each | ||||||
15 | retailer maintaining a place
of
business in
this State shall | ||||||
16 | make a return to the Department for the preceding calendar
| ||||||
17 | month, stating:
| ||||||
18 | 1. His name;
| ||||||
19 | 2. The address of his principal place of business, or | ||||||
20 | the
address of
the principal place of business (if that is | ||||||
21 | a different address) from which
he engages in the business | ||||||
22 | of transmitting telecommunications;
| ||||||
23 | 3. Total amount of gross charges billed by him during | ||||||
24 | the preceding
calendar month for providing |
| |||||||
| |||||||
1 | telecommunications during such calendar month;
| ||||||
2 | 4. Total amount received by him during the preceding | ||||||
3 | calendar month on
credit extended;
| ||||||
4 | 5. Deductions allowed by law;
| ||||||
5 | 6. Gross charges which were billed by him during the | ||||||
6 | preceding calendar
month and upon the basis of which the | ||||||
7 | tax is imposed;
| ||||||
8 | 7. Amount of tax (computed upon Item 6);
| ||||||
9 | 8. Such other reasonable information as the Department | ||||||
10 | may require.
| ||||||
11 | Any taxpayer required to make payments under this Section | ||||||
12 | may make the
payments by electronic funds transfer. The | ||||||
13 | Department shall adopt
rules
necessary to effectuate a program | ||||||
14 | of electronic funds transfer.
Any taxpayer who has average | ||||||
15 | monthly tax billings due to the Department under
this Act and | ||||||
16 | the Simplified Municipal Telecommunications Tax Act that | ||||||
17 | exceed
$1,000 shall
make all payments by electronic funds | ||||||
18 | transfer as required by rules of the
Department and shall file | ||||||
19 | the return required by this Section by electronic
means as | ||||||
20 | required by rules of the Department.
| ||||||
21 | If the retailer's average monthly tax billings due to the | ||||||
22 | Department under
this Act and the Simplified Municipal | ||||||
23 | Telecommunications Tax Act do
not exceed $1,000, the Department | ||||||
24 | may authorize his returns to be
filed on a
quarter annual | ||||||
25 | basis, with the return for January, February and March of a
| ||||||
26 | given year being due by April 30 of such year; with the return |
| |||||||
| |||||||
1 | for
April,
May and June of a given year being due by July 31st | ||||||
2 | of such year;
with
the
return for July, August and September of | ||||||
3 | a given year being due by October
31st of such year; and with | ||||||
4 | the return of October, November and
December of a
given year | ||||||
5 | being due by January 31st of the following year.
| ||||||
6 | If the retailer is otherwise required to file a monthly or | ||||||
7 | quarterly return
and if the retailer's average monthly tax | ||||||
8 | billings due to the Department
under this Act and the | ||||||
9 | Simplified Municipal Telecommunications Tax Act do
not
exceed | ||||||
10 | $400, the Department may authorize his or her return to be
| ||||||
11 | filed on an annual basis, with the return for a given year | ||||||
12 | being due by January
31st of the following year.
| ||||||
13 | Notwithstanding any other provision of this Article | ||||||
14 | containing the time
within which a retailer may file his | ||||||
15 | return, in the case of any retailer
who ceases to engage in a | ||||||
16 | kind of business which makes him responsible for
filing returns | ||||||
17 | under this Article, such retailer shall file a final return
| ||||||
18 | under this Article with the Department not more than one month | ||||||
19 | after
discontinuing such business.
| ||||||
20 | In making such return, the retailer shall determine the | ||||||
21 | value of any
consideration other than money received by him and | ||||||
22 | he shall include such
value in his return. Such determination | ||||||
23 | shall be subject to review and
revision by the Department in | ||||||
24 | the manner hereinafter provided for the
correction of returns.
| ||||||
25 | Each retailer whose average monthly liability to the | ||||||
26 | Department under
this Article and the Simplified Municipal |
| |||||||
| |||||||
1 | Telecommunications Tax Act was
$25,000 or more during the | ||||||
2 | preceding calendar year, excluding
the month of highest | ||||||
3 | liability and the month of lowest liability in such
calendar | ||||||
4 | year, and who is not operated by a unit of local government,
| ||||||
5 | shall make estimated payments to the Department on or before | ||||||
6 | the 7th, 15th,
22nd and last day of the month during which tax | ||||||
7 | collection liability to the
Department is incurred in an amount | ||||||
8 | not less than the lower of either 22.5%
of the retailer's | ||||||
9 | actual tax collections for the month or 25% of the
retailer's | ||||||
10 | actual tax collections for the same calendar month of the
| ||||||
11 | preceding year. The amount of such quarter monthly payments | ||||||
12 | shall be
credited against the final liability of the retailer's | ||||||
13 | return for that
month. Any outstanding credit, approved by the | ||||||
14 | Department, arising from
the retailer's overpayment of its | ||||||
15 | final liability for any month may be
applied to reduce the | ||||||
16 | amount of any subsequent quarter monthly payment or
credited | ||||||
17 | against the final liability of the retailer's return for any
| ||||||
18 | subsequent month. If any quarter monthly payment is not paid at | ||||||
19 | the time
or in the amount required by this Section, the | ||||||
20 | retailer shall be liable for
penalty and interest on the | ||||||
21 | difference between the minimum amount due as a
payment and the | ||||||
22 | amount of such payment actually and timely paid, except
insofar | ||||||
23 | as the retailer has previously made payments for that month to | ||||||
24 | the
Department in excess of the minimum payments previously | ||||||
25 | due.
| ||||||
26 | The retailer making the return herein provided for shall, |
| |||||||
| |||||||
1 | at the time of
making such return, pay to the Department the | ||||||
2 | amount of tax herein imposed,
less a discount of 1% which is | ||||||
3 | allowed to reimburse the retailer for the
expenses incurred in | ||||||
4 | keeping records, billing the customer, preparing and
filing | ||||||
5 | returns, remitting the tax, and supplying data to the | ||||||
6 | Department upon
request. No discount may be claimed by a | ||||||
7 | retailer on returns not timely filed
and for taxes not timely
| ||||||
8 | remitted.
| ||||||
9 | If any payment provided for in this Section exceeds the | ||||||
10 | retailer's liabilities under this Act, as shown on an original | ||||||
11 | return, the Department may authorize the retailer to credit | ||||||
12 | such excess payment against liability subsequently to be | ||||||
13 | remitted to the Department under this Act, in accordance with | ||||||
14 | reasonable rules adopted by the Department. If the Department | ||||||
15 | subsequently determines that all or any part of the credit | ||||||
16 | taken was not actually due to the retailer, the retailer's | ||||||
17 | discount shall be reduced by an amount equal to the difference | ||||||
18 | between the discount as applied to the credit taken and that | ||||||
19 | actually due, and that retailer shall be liable for penalties | ||||||
20 | and interest on such difference. | ||||||
21 | On and after the effective date of this Article of 1985,
of | ||||||
22 | the moneys received by the Department of Revenue pursuant to | ||||||
23 | this
Article, other than moneys received pursuant to the | ||||||
24 | additional
taxes imposed
by Public Act 90-548: | ||||||
25 | (1) $1,000,000 shall be paid each month into the Common | ||||||
26 | School Fund; |
| |||||||
| |||||||
1 | (2) beginning on the first day of the first calendar | ||||||
2 | month to occur on or after the effective date of this | ||||||
3 | amendatory Act of the 98th General Assembly, an amount | ||||||
4 | equal to 1/12 of 5% of the cash receipts collected during | ||||||
5 | the preceding fiscal year by the Audit Bureau of the | ||||||
6 | Department from the tax under this Act and the Simplified | ||||||
7 | Municipal Telecommunications Tax Act shall be paid each | ||||||
8 | month into the Tax Compliance and Administration Fund; | ||||||
9 | those moneys shall be used, subject to appropriation, to | ||||||
10 | fund additional auditors and compliance personnel at the | ||||||
11 | Department of Revenue; and | ||||||
12 | (3) the
remainder shall be deposited into the General | ||||||
13 | Revenue Fund. | ||||||
14 | On and after February 1, 1998,
however, of
the moneys | ||||||
15 | received by the Department of Revenue pursuant to the | ||||||
16 | additional
taxes imposed
by Public Act 90-548,
one-half shall | ||||||
17 | be deposited
into the School Infrastructure Fund and one-half | ||||||
18 | shall be deposited into the
Common School Fund.
On and after | ||||||
19 | the effective date of this amendatory Act of the 91st General
| ||||||
20 | Assembly, if in any fiscal year the total of the moneys | ||||||
21 | deposited into the
School Infrastructure Fund under this Act is | ||||||
22 | less than the total of the moneys
deposited into that Fund from | ||||||
23 | the additional taxes imposed by Public Act
90-548 during fiscal | ||||||
24 | year 1999, then, as soon as possible after the close of
the | ||||||
25 | fiscal year, the Comptroller shall order transferred
and the | ||||||
26 | Treasurer shall transfer from the General Revenue Fund to the |
| |||||||
| |||||||
1 | School
Infrastructure Fund an amount equal to the difference | ||||||
2 | between the fiscal year
total
deposits and the
total amount | ||||||
3 | deposited into the Fund in fiscal year 1999.
| ||||||
4 | (Source: P.A. 98-1098, eff. 8-26-14.)
| ||||||
5 | Section 25-65. The Electricity Excise Tax Law is amended by | ||||||
6 | changing Sections 2-9 and 2-11 as follows:
| ||||||
7 | (35 ILCS 640/2-9)
| ||||||
8 | Sec. 2-9. Return and payment of tax by delivering
supplier.
| ||||||
9 | Each delivering supplier who is required or authorized to
| ||||||
10 | collect the tax imposed by this Law shall make a return to the
| ||||||
11 | Department on or before the 15th day of each month for the
| ||||||
12 | preceding calendar month stating the following:
| ||||||
13 | (1) The delivering supplier's name.
| ||||||
14 | (2) The address of the delivering supplier's principal
| ||||||
15 | place of business and the address of the principal place of
| ||||||
16 | business (if that is a different address) from which the
| ||||||
17 | delivering supplier engaged in the business of delivering
| ||||||
18 | electricity in this State.
| ||||||
19 | (3) The total number of kilowatt-hours which the
| ||||||
20 | supplier delivered to or for purchasers during the | ||||||
21 | preceding
calendar month and upon the basis of which the | ||||||
22 | tax is imposed.
| ||||||
23 | (4) Amount of tax, computed upon Item (3) at the rates
| ||||||
24 | stated in Section 2-4.
|
| |||||||
| |||||||
1 | (5) An adjustment for uncollectible amounts of tax in | ||||||
2 | respect of prior
period kilowatt-hour deliveries, | ||||||
3 | determined in accordance with rules and
regulations | ||||||
4 | promulgated by the Department.
| ||||||
5 | (5.5) The amount of credits to which the taxpayer is | ||||||
6 | entitled on account
of purchases made under Section 8-403.1 | ||||||
7 | of the Public Utilities Act.
| ||||||
8 | (6) Such other information as the Department | ||||||
9 | reasonably
may require.
| ||||||
10 | In making such return the delivering supplier may use any
| ||||||
11 | reasonable method to derive reportable "kilowatt-hours" from
| ||||||
12 | the delivering supplier's records.
| ||||||
13 | If the average monthly tax liability to the Department of
| ||||||
14 | the delivering supplier does not exceed $2,500, the Department
| ||||||
15 | may authorize the delivering supplier's returns to be filed on
| ||||||
16 | a quarter-annual basis, with the return for January, February
| ||||||
17 | and March of a given year being due by April 30 of such year;
| ||||||
18 | with the return for April, May and June of a given year being
| ||||||
19 | due by July 31 of such year; with the return for July, August
| ||||||
20 | and September of a given year being due by October 31 of such
| ||||||
21 | year; and with the return for October, November and December
of | ||||||
22 | a given year being due by January 31 of the following year.
| ||||||
23 | If the average monthly tax liability to the Department of
| ||||||
24 | the delivering supplier does not exceed $1,000, the Department
| ||||||
25 | may authorize the delivering supplier's returns to be filed on
| ||||||
26 | an annual basis, with the return for a given year being due by
|
| |||||||
| |||||||
1 | January 31 of the following year.
| ||||||
2 | Such quarter-annual and annual returns, as to form and
| ||||||
3 | substance, shall be subject to the same requirements as
monthly | ||||||
4 | returns.
| ||||||
5 | Notwithstanding any other provision in this Law
concerning | ||||||
6 | the time within which a delivering supplier may
file a return, | ||||||
7 | any such delivering supplier who ceases to
engage in a kind of | ||||||
8 | business which makes the person
responsible for filing returns | ||||||
9 | under this Law shall file a
final return under this Law with | ||||||
10 | the Department not more than
one month after discontinuing such | ||||||
11 | business.
| ||||||
12 | Each delivering supplier whose average monthly liability
| ||||||
13 | to the Department under this Law was $10,000 or more during
the | ||||||
14 | preceding calendar year, excluding the month of highest
| ||||||
15 | liability and the month of lowest liability in such calendar
| ||||||
16 | year, and who is not operated by a unit of local government,
| ||||||
17 | shall make estimated payments to the Department on or before
| ||||||
18 | the 7th, 15th, 22nd and last day of the month during which tax
| ||||||
19 | liability to the Department is incurred in an amount not less
| ||||||
20 | than the lower of either 22.5% of such delivering supplier's
| ||||||
21 | actual tax liability for the month or 25% of such delivering
| ||||||
22 | supplier's actual tax liability for the same calendar month of
| ||||||
23 | the preceding year. The amount of such quarter-monthly
payments | ||||||
24 | shall be credited against the final tax liability of
such | ||||||
25 | delivering supplier's return for that month. An
outstanding | ||||||
26 | credit approved by the Department or a credit memorandum
issued |
| |||||||
| |||||||
1 | by the Department arising
from
such delivering supplier's | ||||||
2 | overpayment of his or her final tax
liability for any month may | ||||||
3 | be applied to reduce the amount of
any subsequent | ||||||
4 | quarter-monthly payment or credited against the
final tax | ||||||
5 | liability of such delivering supplier's return for
any | ||||||
6 | subsequent month. If any quarter-monthly payment is not
paid at | ||||||
7 | the time or in the amount required by this Section,
such | ||||||
8 | delivering supplier shall be liable for penalty and
interest on | ||||||
9 | the difference between the minimum amount due as a
payment and | ||||||
10 | the amount of such payment actually and timely
paid, except | ||||||
11 | insofar as such delivering supplier has
previously made | ||||||
12 | payments for that month to the Department in
excess of the | ||||||
13 | minimum payments previously due.
| ||||||
14 | If the Director finds that the information required for
the | ||||||
15 | making of an accurate return cannot reasonably be compiled
by | ||||||
16 | such delivering supplier within 15 days after the close of
the | ||||||
17 | calendar month for which a return is to be made, the
Director | ||||||
18 | may grant an extension of time for the filing of such
return | ||||||
19 | for a period not to exceed 31 calendar days. The
granting of | ||||||
20 | such an extension may be conditioned upon the
deposit by such | ||||||
21 | delivering supplier with the Department of an
amount of money | ||||||
22 | not exceeding the amount estimated by the
Director to be due | ||||||
23 | with the return so extended. All such
deposits shall be | ||||||
24 | credited against such delivering supplier's
liabilities under | ||||||
25 | this Law. If the deposit exceeds such
delivering supplier's | ||||||
26 | present and probable future liabilities
under this Law, the |
| |||||||
| |||||||
1 | Department shall issue to such delivering
supplier a credit | ||||||
2 | memorandum, which may be assigned by such
delivering supplier | ||||||
3 | to a similar person under this Law, in
accordance with | ||||||
4 | reasonable rules and regulations to be
prescribed by the | ||||||
5 | Department.
| ||||||
6 | The delivering supplier making the return provided for in
| ||||||
7 | this Section shall, at the time of making such return, pay to
| ||||||
8 | the Department the amount of tax imposed by this Law.
| ||||||
9 | Until October 1, 2002, a delivering supplier who has an | ||||||
10 | average monthly
tax
liability of $10,000 or more shall make all | ||||||
11 | payments
required by rules of the Department by electronic | ||||||
12 | funds
transfer. The term "average monthly tax liability" shall | ||||||
13 | be
the sum of the delivering supplier's liabilities under this
| ||||||
14 | Law for the immediately preceding calendar year divided by
12.
| ||||||
15 | Beginning on October 1, 2002, a taxpayer who has a tax | ||||||
16 | liability in the
amount set forth in subsection (b) of Section | ||||||
17 | 2505-210 of the Department of
Revenue Law shall make all | ||||||
18 | payments required by rules of the Department by
electronic | ||||||
19 | funds transfer.
Any delivering supplier not required to make | ||||||
20 | payments
by electronic funds transfer may make payments by | ||||||
21 | electronic
funds transfer with the permission of the | ||||||
22 | Department. All
delivering suppliers required to make payments | ||||||
23 | by electronic
funds transfer and any delivering suppliers | ||||||
24 | authorized to
voluntarily make payments by electronic funds | ||||||
25 | transfer shall
make those payments in the manner authorized by | ||||||
26 | the
Department.
|
| |||||||
| |||||||
1 | If any payment provided for in this Section exceeds the | ||||||
2 | delivering supplier's liabilities under this Act, as shown on | ||||||
3 | an original return, the Department may authorize the delivering | ||||||
4 | supplier to credit such excess payment against liability | ||||||
5 | subsequently to be remitted to the Department under this Act, | ||||||
6 | in accordance with reasonable rules adopted by the Department. | ||||||
7 | Through June 30, 2004, each month the Department shall pay | ||||||
8 | into the Public
Utility Fund in the State treasury an amount | ||||||
9 | determined by the
Director to be equal to 3.0% of the funds | ||||||
10 | received by
the Department pursuant to this Section. Through | ||||||
11 | June 30, 2004, the remainder of all
moneys received by the | ||||||
12 | Department under this Section shall be
paid into the General | ||||||
13 | Revenue Fund in the State treasury. Beginning on July 1, 2004, | ||||||
14 | of the 3% of the funds received pursuant to this Section, each | ||||||
15 | month the Department shall pay $416,667 into the General | ||||||
16 | Revenue Fund and the balance shall be paid into the Public | ||||||
17 | Utility Fund in the State treasury.
| ||||||
18 | (Source: P.A. 92-492, eff. 1-1-02; 93-839, eff. 7-30-04.)
| ||||||
19 | (35 ILCS 640/2-11)
| ||||||
20 | Sec. 2-11. Direct return and payment by self-assessing | ||||||
21 | purchaser. When
electricity is used or consumed by a | ||||||
22 | self-assessing purchaser subject to the
tax imposed by this Law | ||||||
23 | who did not pay the tax to a delivering supplier
maintaining a | ||||||
24 | place of business within this State and required or authorized
| ||||||
25 | to collect the tax, that self-assessing purchaser shall, on or |
| |||||||
| |||||||
1 | before the 15th
day of each month, make a return to the | ||||||
2 | Department for the preceding calendar
month, stating all of the | ||||||
3 | following:
| ||||||
4 | (1) The self-assessing purchaser's name and principal | ||||||
5 | address.
| ||||||
6 | (2) The aggregate purchase price paid by the | ||||||
7 | self-assessing purchaser for
the distribution, supply, | ||||||
8 | furnishing, sale, transmission and delivery of such
| ||||||
9 | electricity to or for the purchaser during the preceding | ||||||
10 | calendar month,
including budget plan and other | ||||||
11 | purchaser-owned amounts applied during such
month in | ||||||
12 | payment of charges includible in the purchase price, and | ||||||
13 | upon the
basis of which the tax is imposed.
| ||||||
14 | (3) Amount of tax, computed upon item (2) at the rate | ||||||
15 | stated in
Section 2-4.
| ||||||
16 | (4) Such other information as the Department | ||||||
17 | reasonably may require.
| ||||||
18 | In making such return the self-assessing purchaser may
use | ||||||
19 | any reasonable method to derive reportable "purchase price"
| ||||||
20 | from the self-assessing purchaser's records.
| ||||||
21 | If the average monthly tax liability of the self-assessing
| ||||||
22 | purchaser to the Department does not exceed $2,500,
the | ||||||
23 | Department may authorize the self-assessing purchaser's
| ||||||
24 | returns to be filed on a quarter-annual basis, with the return
| ||||||
25 | for January, February and March of a given year being due by
| ||||||
26 | April 30 of such year; with the return for April, May and June
|
| |||||||
| |||||||
1 | of a given year being due by July 31 of such year; with the
| ||||||
2 | return for July, August, and September of a given year being
| ||||||
3 | due by October 31 of such year; and with the return for
| ||||||
4 | October, November and December of a given year being due by
| ||||||
5 | January 31 of the following year.
| ||||||
6 | If the average monthly tax liability of the self-assessing
| ||||||
7 | purchaser to the Department does not exceed $1,000, the
| ||||||
8 | Department may authorize the self-assessing purchaser's
| ||||||
9 | returns to be filed on an annual basis, with the return for a
| ||||||
10 | given year being due by January 31 of the following year.
| ||||||
11 | Such quarter-annual and annual returns, as to form and
| ||||||
12 | substance, shall be subject to the same requirements as
monthly | ||||||
13 | returns.
| ||||||
14 | Notwithstanding any other provision in this Law
concerning | ||||||
15 | the time within which a self-assessing purchaser
may file a | ||||||
16 | return, any such self-assessing purchaser who
ceases to be | ||||||
17 | responsible for filing returns under this Law
shall file a | ||||||
18 | final return under this Law with the Department
not more than | ||||||
19 | one month thereafter.
| ||||||
20 | Each self-assessing purchaser whose average monthly
| ||||||
21 | liability to the Department pursuant to this Section was
| ||||||
22 | $10,000 or more during the preceding calendar year, excluding
| ||||||
23 | the month of highest liability and the month of lowest
| ||||||
24 | liability during such calendar year, and which is not operated
| ||||||
25 | by a unit of local government, shall make estimated payments
to | ||||||
26 | the Department on or before the 7th, 15th, 22nd and last
day of |
| |||||||
| |||||||
1 | the month during which tax liability to the Department
is | ||||||
2 | incurred in an amount not less than the lower of either
22.5% | ||||||
3 | of such self-assessing purchaser's actual tax liability
for the | ||||||
4 | month or 25% of such self-assessing purchaser's actual
tax | ||||||
5 | liability for the same calendar month of the preceding
year. | ||||||
6 | The amount of such quarter-monthly payments shall be
credited | ||||||
7 | against the final tax liability of the self-assessing
| ||||||
8 | purchaser's return for that month. An outstanding credit
| ||||||
9 | approved by the Department or a credit memorandum
issued by the | ||||||
10 | Department arising from the self-assessing
purchaser's | ||||||
11 | overpayment of the self-assessing purchaser's
final tax | ||||||
12 | liability for any month may be applied to reduce the
amount of | ||||||
13 | any subsequent quarter-monthly payment or credited
against the | ||||||
14 | final tax liability of such self-assessing
purchaser's return | ||||||
15 | for any subsequent month. If any
quarter-monthly payment is not | ||||||
16 | paid at the time or in the amount
required by this Section, | ||||||
17 | such person shall be liable for
penalty and interest on the | ||||||
18 | difference between the minimum
amount due as a payment and the | ||||||
19 | amount of such payment
actually and timely paid, except insofar | ||||||
20 | as such person has
previously made payments for that month to | ||||||
21 | the Department in
excess of the minimum payments previously | ||||||
22 | due.
| ||||||
23 | If the Director finds that the information required for
the | ||||||
24 | making of an accurate return cannot reasonably be compiled
by a | ||||||
25 | self-assessing purchaser within 15 days after the close
of the | ||||||
26 | calendar month for which a return is to be made, the
Director |
| |||||||
| |||||||
1 | may grant an extension of time for the filing of such
return | ||||||
2 | for a period of not to exceed 31 calendar days. The
granting of | ||||||
3 | such an extension may be conditioned upon the
deposit by such | ||||||
4 | self-assessing purchaser with the Department
of an amount of | ||||||
5 | money not exceeding the amount estimated by
the Director to be | ||||||
6 | due with the return so extended. All such
deposits shall be | ||||||
7 | credited against such self-assessing
purchaser's liabilities | ||||||
8 | under this Law. If the deposit
exceeds such self-assessing | ||||||
9 | purchaser's present and probable
future liabilities under this | ||||||
10 | Law, the Department shall issue
to such self-assessing | ||||||
11 | purchaser a credit memorandum, which
may be assigned by such | ||||||
12 | self-assessing purchaser to a similar
person under this Law, in | ||||||
13 | accordance with reasonable rules and
regulations to be | ||||||
14 | prescribed by the Department.
| ||||||
15 | The self-assessing purchaser making the return provided
| ||||||
16 | for in this Section shall, at the time of making such return,
| ||||||
17 | pay to the Department the amount of tax imposed by this Law.
| ||||||
18 | Until October 1, 2002, a self-assessing purchaser who has | ||||||
19 | an average
monthly tax
liability of $10,000 or more shall make | ||||||
20 | all payments
required by rules of the Department by electronic | ||||||
21 | funds
transfer. The term "average monthly tax liability" shall | ||||||
22 | be
the sum of the self-assessing purchaser's liabilities under
| ||||||
23 | this Law for the immediately preceding calendar year divided
by | ||||||
24 | 12.
Beginning on October 1, 2002, a taxpayer who has a tax | ||||||
25 | liability in the
amount set forth in subsection (b) of Section | ||||||
26 | 2505-210 of the Department of
Revenue Law shall make all |
| |||||||
| |||||||
1 | payments required by rules of the Department by
electronic | ||||||
2 | funds transfer.
Any self-assessing purchaser not required to | ||||||
3 | make
payments by electronic funds transfer may make payments by
| ||||||
4 | electronic funds transfer with the permission of the
| ||||||
5 | Department. All self-assessing purchasers required to make
| ||||||
6 | payments by electronic funds transfer and any self-assessing
| ||||||
7 | purchasers authorized to voluntarily make payments by
| ||||||
8 | electronic funds transfer shall make those payments in the
| ||||||
9 | manner authorized by the Department.
| ||||||
10 | If any payment provided for in this Section exceeds the | ||||||
11 | self-assessing purchaser's liabilities under this Act, as | ||||||
12 | shown on an original return, the Department may authorize the | ||||||
13 | self-assessing purchaser to credit such excess payment against | ||||||
14 | liability subsequently to be remitted to the Department under | ||||||
15 | this Act, in accordance with reasonable rules adopted by the | ||||||
16 | Department. | ||||||
17 | Through June 30, 2004, each month the Department shall pay | ||||||
18 | into the Public
Utility Fund in the State treasury an amount | ||||||
19 | determined by the
Director to be equal to 3.0% of the funds | ||||||
20 | received by
the Department pursuant to this Section. Through | ||||||
21 | June 30, 2004, the remainder of all
moneys received by the | ||||||
22 | Department under this Section shall be
paid into the General | ||||||
23 | Revenue Fund in the State treasury. Beginning on July 1, 2004, | ||||||
24 | of the 3% of the funds received pursuant to this Section, each | ||||||
25 | month the Department shall pay $416,667 into the General | ||||||
26 | Revenue Fund and the balance shall be paid into the Public |
| |||||||
| |||||||
1 | Utility Fund in the State treasury.
| ||||||
2 | (Source: P.A. 92-492, eff. 1-1-02; 93-839, eff. 7-30-04.)
| ||||||
3 | Section 25-70. The Illinois Pull Tabs and Jar Games Act is | ||||||
4 | amended by changing Section 5 as follows:
| ||||||
5 | (230 ILCS 20/5) (from Ch. 120, par. 1055)
| ||||||
6 | Sec. 5. Payments; returns. There shall be paid to the | ||||||
7 | Department of Revenue 5% of the
gross proceeds of any pull tabs | ||||||
8 | and jar games conducted
under this Act. Such payments shall be | ||||||
9 | made 4 times per year, between the
first and the 20th day of | ||||||
10 | April, July, October and January. Accompanying each payment | ||||||
11 | shall
be a return, on forms prescribed by the Department of | ||||||
12 | Revenue. Failure to
submit either the payment or the return
| ||||||
13 | within the specified time shall
result in suspension or | ||||||
14 | revocation of the license. Tax returns filed pursuant to this | ||||||
15 | Act shall not be confidential and shall be available for public | ||||||
16 | inspection. All payments made to the
Department of Revenue | ||||||
17 | under this Act shall be deposited as follows:
| ||||||
18 | (a) 50% shall be deposited in the Common School Fund; | ||||||
19 | and
| ||||||
20 | (b) 50% shall be deposited in the Illinois Gaming Law | ||||||
21 | Enforcement Fund.
Of the monies deposited in the Illinois | ||||||
22 | Gaming Law Enforcement Fund under
this Section, the General | ||||||
23 | Assembly shall appropriate two-thirds to the
Department of | ||||||
24 | Revenue, Department of State Police and the Office of the
|
| |||||||
| |||||||
1 | Attorney General for State law enforcement purposes, and | ||||||
2 | one-third shall be
appropriated to the Department of | ||||||
3 | Revenue for the purpose of distribution
in the form of | ||||||
4 | grants to counties or municipalities for law enforcement
| ||||||
5 | purposes. The amounts of grants to counties or | ||||||
6 | municipalities shall bear
the same ratio as the number of | ||||||
7 | licenses issued in counties or
municipalities bears to the | ||||||
8 | total number of licenses issued in the State.
In computing | ||||||
9 | the number of licenses issued in a county, licenses issued | ||||||
10 | for
locations within a municipality's boundaries shall be | ||||||
11 | excluded.
| ||||||
12 | The provisions of Sections 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, | ||||||
13 | 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11 and
12 of the | ||||||
14 | Retailers' Occupation Tax Act, and Section 3-7
of the Uniform | ||||||
15 | Penalty and Interest Act, which are not inconsistent
with this | ||||||
16 | Act shall apply, as far as practicable, to the subject matter
| ||||||
17 | of this Act to the same extent as if such provisions were | ||||||
18 | included in this
Act. For the purposes of this Act, references | ||||||
19 | in such incorporated Sections
of the Retailers' Occupation Tax | ||||||
20 | Act to retailers, sellers or persons
engaged in the business of | ||||||
21 | selling tangible personal property means persons
engaged in | ||||||
22 | conducting pull tabs and jar games and references in such
| ||||||
23 | incorporated Sections of the Retailers' Occupation Tax Act to | ||||||
24 | sales of
tangible personal property mean the conducting of pull | ||||||
25 | tabs and jar games
and the making of charges for participating | ||||||
26 | in such drawings.
|
| |||||||
| |||||||
1 | If any payment provided for in this Section exceeds the | ||||||
2 | taxpayer's liabilities under this Act, as shown on an original | ||||||
3 | return, the taxpayer may credit such excess payment against | ||||||
4 | liability subsequently to be remitted to the Department under | ||||||
5 | this Act, in accordance with reasonable rules adopted by the | ||||||
6 | Department. | ||||||
7 | (Source: P.A. 95-228, eff. 8-16-07.)
| ||||||
8 | Section 25-75. The Bingo License and Tax Act is amended by | ||||||
9 | changing Section 3 as follows:
| ||||||
10 | (230 ILCS 25/3) (from Ch. 120, par. 1103)
| ||||||
11 | Sec. 3. Payments; returns. There shall be paid to the | ||||||
12 | Department of Revenue, 5% of the gross
proceeds of any game of | ||||||
13 | bingo conducted under the provision of this Act.
Such payments | ||||||
14 | shall be made 4 times per year, between the first and the
20th | ||||||
15 | day of April, July, October and January. Accompanying each | ||||||
16 | payment shall be a return,
on forms prescribed by the | ||||||
17 | Department of Revenue. Failure to submit either the payment or
| ||||||
18 | the return within the specified time may result in suspension | ||||||
19 | or revocation
of the license. Tax returns filed pursuant to | ||||||
20 | this Act shall not be confidential and shall be available for | ||||||
21 | public inspection.
| ||||||
22 | If any payment provided for in this Section exceeds the | ||||||
23 | taxpayer's liabilities under this Act, as shown on an original | ||||||
24 | return, the taxpayer may credit such excess payment against |
| |||||||
| |||||||
1 | liability subsequently to be remitted to the Department under | ||||||
2 | this Act, in accordance with reasonable rules adopted by the | ||||||
3 | Department. | ||||||
4 | All payments made to the Department of Revenue under this | ||||||
5 | Section shall be deposited as follows: | ||||||
6 | (1) 50% shall be deposited in the Mental Health Fund; | ||||||
7 | and | ||||||
8 | (2) 50% shall be deposited in the Common School Fund.
| ||||||
9 |
The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
10 | 5g, 5i, 5j,
6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers' | ||||||
11 | Occupation
Tax Act
and Section 3-7 of the
Uniform Penalty and | ||||||
12 | Interest Act, which are not inconsistent with this Act, shall | ||||||
13 | apply, as far as
practicable, to the subject matter of this Act | ||||||
14 | to the same extent as if
such provisions were included in this | ||||||
15 | Act. For the purposes of this Act, references in such | ||||||
16 | incorporated
Sections of the Retailers' Occupation Tax Act to | ||||||
17 | retailers, sellers or
persons engaged in the business of | ||||||
18 | selling tangible personal property means
persons engaged in | ||||||
19 | conducting bingo games, and references in such
incorporated | ||||||
20 | Sections of the Retailers' Occupation Tax Act to sales of
| ||||||
21 | tangible personal property mean the conducting of bingo games | ||||||
22 | and the
making of charges for playing such games.
| ||||||
23 | (Source: P.A. 95-228, eff. 8-16-07.)
| ||||||
24 | Section 25-80. The Charitable Games Act is amended by | ||||||
25 | changing Section 9 as follows:
|
| |||||||
| |||||||
1 | (230 ILCS 30/9) (from Ch. 120, par. 1129)
| ||||||
2 | Sec. 9. Payments; returns. There shall be paid to the | ||||||
3 | Department of Revenue, 5% of the net
proceeds of charitable | ||||||
4 | games conducted under the provisions
of this Act. Such payments | ||||||
5 | shall be made within 30 days after the
completion of the games. | ||||||
6 | Accompanying each payment shall be a return, on forms | ||||||
7 | prescribed by
the Department of Revenue. Failure to submit | ||||||
8 | either the payment or the return within the
specified time may | ||||||
9 | result in suspension or revocation of the license. Tax returns | ||||||
10 | filed pursuant to this Act shall not be confidential and shall | ||||||
11 | be available for public inspection.
| ||||||
12 |
The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
13 | 5g, 5i, 5j,
6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers' | ||||||
14 | Occupation
Tax Act, and Section 3-7 of the Uniform Penalty and | ||||||
15 | Interest Act,
which are not inconsistent with this Act shall | ||||||
16 | apply, as far as
practicable, to the subject matter of this Act | ||||||
17 | to the same extent as if
such provisions were included in this | ||||||
18 | Act. For the purposes of this Act, references in such | ||||||
19 | incorporated
Sections of the Retailers' Occupation Tax Act to | ||||||
20 | retailers, sellers or
persons engaged in the business of | ||||||
21 | selling tangible personal property means
persons engaged in | ||||||
22 | conducting charitable games, and references in such
| ||||||
23 | incorporated Sections of the Retailers' Occupation Tax Act to | ||||||
24 | sales of
tangible personal property mean the conducting of | ||||||
25 | charitable games and the
making of charges for playing such |
| |||||||
| |||||||
1 | games.
| ||||||
2 | If any payment provided for in this Section exceeds the | ||||||
3 | taxpayer's liabilities under this Act, as shown on an original | ||||||
4 | return, the taxpayer may credit such excess payment against | ||||||
5 | liability subsequently to be remitted to the Department under | ||||||
6 | this Act, in accordance with reasonable rules adopted by the | ||||||
7 | Department. | ||||||
8 | All payments made to the Department of Revenue under this | ||||||
9 | Section shall be deposited
into the Illinois Gaming Law | ||||||
10 | Enforcement Fund of the State Treasury.
| ||||||
11 | (Source: P.A. 98-377, eff. 1-1-14.)
| ||||||
12 | Section 25-85. The Liquor Control Act of 1934 is amended by | ||||||
13 | changing Section 8-2 as follows:
| ||||||
14 | (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| ||||||
15 | Sec. 8-2. Payments; reports. It is the duty of each | ||||||
16 | manufacturer with respect to alcoholic
liquor produced or | ||||||
17 | imported by such manufacturer, or purchased tax-free by
such | ||||||
18 | manufacturer from another manufacturer or importing
| ||||||
19 | distributor, and of each importing distributor as to alcoholic | ||||||
20 | liquor
purchased by such importing distributor from foreign | ||||||
21 | importers or from
anyone from any point in the United States | ||||||
22 | outside of this State or
purchased tax-free from another | ||||||
23 | manufacturer or importing
distributor, to pay the tax imposed | ||||||
24 | by Section 8-1 to the
Department of Revenue on or before the |
| |||||||
| |||||||
1 | 15th day of the calendar month
following the calendar month in | ||||||
2 | which such alcoholic liquor is sold or used
by such | ||||||
3 | manufacturer or by such importing distributor other than in an
| ||||||
4 | authorized tax-free manner or to pay that tax electronically as | ||||||
5 | provided in
this Section.
| ||||||
6 | Each manufacturer and each importing distributor shall
| ||||||
7 | make payment under one of the following methods: (1) on or | ||||||
8 | before the
15th day of each calendar month, file in person or | ||||||
9 | by United States
first-class
mail, postage pre-paid,
with the | ||||||
10 | Department of Revenue, on
forms prescribed and furnished by the | ||||||
11 | Department, a report in writing in
such form as may be required | ||||||
12 | by the Department in order to compute, and
assure the accuracy | ||||||
13 | of, the tax due on all taxable sales and uses of
alcoholic | ||||||
14 | liquor occurring during the preceding month. Payment of the tax
| ||||||
15 | in the amount disclosed by the report shall accompany the | ||||||
16 | report or, (2) on
or
before the 15th day of each calendar | ||||||
17 | month, electronically file with the
Department of Revenue, on | ||||||
18 | forms prescribed and furnished by the Department, an
electronic | ||||||
19 | report in such form as may be required by the Department in | ||||||
20 | order to
compute,
and assure the accuracy of, the tax due on | ||||||
21 | all taxable sales and uses of
alcoholic liquor
occurring during | ||||||
22 | the preceding month. An electronic payment of the tax in the
| ||||||
23 | amount
disclosed by the report shall accompany the report. A | ||||||
24 | manufacturer or
distributor who
files an electronic report and | ||||||
25 | electronically pays the tax imposed pursuant to
Section 8-1
to | ||||||
26 | the Department of Revenue on or before the 15th day of the |
| |||||||
| |||||||
1 | calendar month
following
the calendar month in which such | ||||||
2 | alcoholic liquor is sold or used by that
manufacturer or
| ||||||
3 | importing distributor other than in an authorized tax-free | ||||||
4 | manner shall pay to
the
Department the amount of the tax | ||||||
5 | imposed pursuant to Section 8-1, less a
discount
which is | ||||||
6 | allowed to reimburse the manufacturer or importing distributor
| ||||||
7 | for the
expenses incurred in keeping and maintaining records, | ||||||
8 | preparing and filing the
electronic
returns, remitting the tax, | ||||||
9 | and supplying data to the Department upon
request.
| ||||||
10 | The discount shall be in an amount as follows:
| ||||||
11 | (1) For original returns due on or after January 1, | ||||||
12 | 2003 through
September 30, 2003, the discount shall be | ||||||
13 | 1.75% or $1,250 per return, whichever
is less;
| ||||||
14 | (2) For original returns due on or after October 1, | ||||||
15 | 2003 through September
30, 2004, the discount shall be 2% | ||||||
16 | or $3,000 per return, whichever is less; and
| ||||||
17 | (3) For original returns due on or after October 1, | ||||||
18 | 2004, the discount
shall
be 2% or $2,000 per return, | ||||||
19 | whichever is less.
| ||||||
20 | The Department may, if it deems it necessary in order to | ||||||
21 | insure the
payment of the tax imposed by this Article, require | ||||||
22 | returns to be made
more frequently than and covering periods of | ||||||
23 | less than a month. Such return
shall contain such further | ||||||
24 | information as the Department may reasonably
require.
| ||||||
25 | It shall be presumed that all alcoholic liquors acquired or | ||||||
26 | made by any
importing distributor or manufacturer have been |
| |||||||
| |||||||
1 | sold or used by him in this
State and are the basis for the tax | ||||||
2 | imposed by this Article unless proven,
to the satisfaction of | ||||||
3 | the Department, that such alcoholic liquors are (1)
still in | ||||||
4 | the possession of such importing distributor or manufacturer, | ||||||
5 | or
(2) prior to the termination of possession have been lost by | ||||||
6 | theft or
through unintentional destruction, or (3) that such | ||||||
7 | alcoholic liquors are
otherwise exempt from taxation under this | ||||||
8 | Act.
| ||||||
9 | If any payment provided for in this Section exceeds the | ||||||
10 | manufacturer's or importing distributor's liabilities under | ||||||
11 | this Act, as shown on an original report, the manufacturer or | ||||||
12 | importing distributor may credit such excess payment against | ||||||
13 | liability subsequently to be remitted to the Department under | ||||||
14 | this Act, in accordance with reasonable rules adopted by the | ||||||
15 | Department. If the Department subsequently determines that all | ||||||
16 | or any part of the credit taken was not actually due to the | ||||||
17 | manufacturer or importing distributor, the manufacturer's or | ||||||
18 | importing distributor's discount shall be reduced by an amount | ||||||
19 | equal to the difference between the discount as applied to the | ||||||
20 | credit taken and that actually due, and the manufacturer or | ||||||
21 | importing distributor shall be liable for penalties and | ||||||
22 | interest on such difference. | ||||||
23 | The Department may require any foreign importer to file | ||||||
24 | monthly
information returns, by the 15th day of the month | ||||||
25 | following the month which
any such return covers, if the | ||||||
26 | Department determines this to be necessary
to the proper |
| |||||||
| |||||||
1 | performance of the Department's functions and duties under
this | ||||||
2 | Act. Such return shall contain such information as the | ||||||
3 | Department may
reasonably require.
| ||||||
4 | Every manufacturer and importing distributor shall also | ||||||
5 | file, with the
Department, a bond in an amount not less than | ||||||
6 | $1,000 and not to exceed
$100,000 on a form to be approved by, | ||||||
7 | and with a surety or sureties
satisfactory to, the Department. | ||||||
8 | Such bond shall be conditioned upon the
manufacturer or | ||||||
9 | importing distributor paying to the Department all monies
| ||||||
10 | becoming due from such manufacturer or importing distributor | ||||||
11 | under this
Article. The Department shall fix the penalty of | ||||||
12 | such bond in each case,
taking into consideration the amount of | ||||||
13 | alcoholic liquor expected to be
sold and used by such | ||||||
14 | manufacturer or importing distributor, and the
penalty fixed by | ||||||
15 | the Department shall be sufficient, in the Department's
| ||||||
16 | opinion, to protect the State of Illinois against failure to | ||||||
17 | pay any amount
due under this Article, but the amount of the | ||||||
18 | penalty fixed by the
Department shall not exceed twice the | ||||||
19 | amount of tax liability of a monthly
return, nor shall the | ||||||
20 | amount of such penalty be less than $1,000. The
Department | ||||||
21 | shall notify the Commission of the Department's approval or
| ||||||
22 | disapproval of any such manufacturer's or importing | ||||||
23 | distributor's bond, or
of the termination or cancellation of | ||||||
24 | any such bond, or of the Department's
direction to a | ||||||
25 | manufacturer or importing distributor that he must file
| ||||||
26 | additional bond in order to comply with this Section. The |
| |||||||
| |||||||
1 | Commission shall
not issue a license to any applicant for a | ||||||
2 | manufacturer's or importing
distributor's license unless the | ||||||
3 | Commission has received a notification
from the Department | ||||||
4 | showing that such applicant has filed a satisfactory
bond with | ||||||
5 | the Department hereunder and that such bond has been approved | ||||||
6 | by
the Department. Failure by any licensed manufacturer or | ||||||
7 | importing
distributor to keep a satisfactory bond in effect | ||||||
8 | with the Department or to
furnish additional bond to the | ||||||
9 | Department, when required hereunder by the
Department to do so, | ||||||
10 | shall be grounds for the revocation or suspension of
such | ||||||
11 | manufacturer's or importing distributor's license by the | ||||||
12 | Commission.
If a manufacturer or importing distributor fails to | ||||||
13 | pay any amount due
under this Article, his bond with the | ||||||
14 | Department shall be deemed forfeited,
and the Department may | ||||||
15 | institute a suit in its own name on such bond.
| ||||||
16 | After notice and opportunity for a hearing the State | ||||||
17 | Commission may
revoke or suspend the license of any | ||||||
18 | manufacturer or importing distributor
who fails to comply with | ||||||
19 | the provisions of this Section. Notice of such
hearing and the | ||||||
20 | time and place thereof shall be in writing and shall
contain a | ||||||
21 | statement of the charges against the licensee. Such notice may | ||||||
22 | be
given by United States registered or certified mail with | ||||||
23 | return receipt
requested, addressed to the person concerned at | ||||||
24 | his last known address and
shall be given not less than 7 days | ||||||
25 | prior to the date fixed for the
hearing. An order revoking or | ||||||
26 | suspending a license under the provisions of
this Section may |
| |||||||
| |||||||
1 | be reviewed in the manner provided in Section 7-10
of this Act. | ||||||
2 | No new license shall be granted to a person
whose license has | ||||||
3 | been revoked for a violation of this Section or, in case
of | ||||||
4 | suspension, shall such suspension be terminated until he has | ||||||
5 | paid to the
Department all taxes and penalties which he owes | ||||||
6 | the State under the
provisions of this Act.
| ||||||
7 | Every manufacturer or importing distributor who has, as | ||||||
8 | verified by
the Department, continuously complied with the | ||||||
9 | conditions of the bond under
this Act for a period of 2 years | ||||||
10 | shall be considered to be a prior
continuous compliance | ||||||
11 | taxpayer. In determining the consecutive period of
time for | ||||||
12 | qualification as a prior continuous compliance taxpayer, any
| ||||||
13 | consecutive period of time of qualifying compliance | ||||||
14 | immediately prior to
the effective date of this amendatory Act | ||||||
15 | of 1987 shall be credited to any
manufacturer or importing | ||||||
16 | distributor.
| ||||||
17 | A manufacturer or importing distributor that is a prior | ||||||
18 | continuous compliance taxpayer under this Section and becomes a | ||||||
19 | successor as the result of an acquisition, merger, or | ||||||
20 | consolidation of a manufacturer or importing distributor shall | ||||||
21 | be deemed to be a prior continuous compliance taxpayer with | ||||||
22 | respect to the acquired, merged, or consolidated entity.
| ||||||
23 | Every prior continuous compliance taxpayer shall be exempt | ||||||
24 | from the bond
requirements of this Act until the Department has | ||||||
25 | determined the taxpayer
to be delinquent in the filing of any | ||||||
26 | return or deficient in the payment of
any tax under this Act. |
| |||||||
| |||||||
1 | Any taxpayer who fails to pay an admitted or
established | ||||||
2 | liability under this Act may also be required to post bond or
| ||||||
3 | other acceptable security with the Department guaranteeing the | ||||||
4 | payment of
such admitted or established liability.
| ||||||
5 | The Department shall discharge any surety and shall release | ||||||
6 | and return
any bond or security deposit assigned, pledged or | ||||||
7 | otherwise provided to it
by a taxpayer under this Section | ||||||
8 | within 30 days after: (1) such taxpayer
becomes a prior | ||||||
9 | continuous compliance taxpayer; or (2) such taxpayer has
ceased | ||||||
10 | to collect receipts on which he is required to remit tax to the
| ||||||
11 | Department, has filed a final tax return, and has paid to the | ||||||
12 | Department an
amount sufficient to discharge his remaining tax | ||||||
13 | liability as determined by
the Department under this Act.
| ||||||
14 | (Source: P.A. 95-769, eff. 7-29-08.)
| ||||||
15 | Section 25-90. The Energy Assistance Act is amended by | ||||||
16 | changing Section 13 and by adding Section 19 as follows:
| ||||||
17 | (305 ILCS 20/13)
| ||||||
18 | (Text of Section before amendment by P.A. 99-906 ) | ||||||
19 | (Section scheduled to be repealed on January 1, 2025) | ||||||
20 | Sec. 13. Supplemental Low-Income Energy Assistance Fund.
| ||||||
21 | (a) The Supplemental Low-Income Energy Assistance
Fund is | ||||||
22 | hereby created as a special fund in the State
Treasury. The | ||||||
23 | Supplemental Low-Income Energy Assistance Fund
is authorized | ||||||
24 | to receive moneys from voluntary donations from individuals, |
| |||||||
| |||||||
1 | foundations, corporations, and other sources, moneys received | ||||||
2 | pursuant to Section 17, and, by statutory deposit, the moneys
| ||||||
3 | collected pursuant to this Section. The Fund is also authorized | ||||||
4 | to receive voluntary donations from individuals, foundations, | ||||||
5 | corporations, and other sources. Subject to appropriation,
the | ||||||
6 | Department shall use
moneys from the Supplemental Low-Income | ||||||
7 | Energy Assistance Fund
for payments to electric or gas public | ||||||
8 | utilities,
municipal electric or gas utilities, and electric | ||||||
9 | cooperatives
on behalf of their customers who are participants | ||||||
10 | in the
program authorized by Sections 4 and 18 of this Act, for | ||||||
11 | the provision of
weatherization services and for
| ||||||
12 | administration of the Supplemental Low-Income Energy
| ||||||
13 | Assistance Fund. The yearly expenditures for weatherization | ||||||
14 | may not exceed 10%
of the amount collected during the year | ||||||
15 | pursuant to this Section. The yearly administrative expenses of | ||||||
16 | the
Supplemental Low-Income Energy Assistance Fund may not | ||||||
17 | exceed
10% of the amount collected during that year
pursuant to | ||||||
18 | this Section, except when unspent funds from the Supplemental | ||||||
19 | Low-Income Energy Assistance Fund are reallocated from a | ||||||
20 | previous year; any unspent balance of the 10% administrative | ||||||
21 | allowance may be utilized for administrative expenses in the | ||||||
22 | year they are reallocated.
| ||||||
23 | (b) Notwithstanding the provisions of Section 16-111
of the | ||||||
24 | Public Utilities Act but subject to subsection (k) of this | ||||||
25 | Section,
each public utility, electric
cooperative, as defined | ||||||
26 | in Section 3.4 of the Electric Supplier Act,
and municipal |
| |||||||
| |||||||
1 | utility, as referenced in Section 3-105 of the Public Utilities
| ||||||
2 | Act, that is engaged in the delivery of electricity or the
| ||||||
3 | distribution of natural gas within the State of Illinois
shall, | ||||||
4 | effective January 1, 1998,
assess each of
its customer accounts | ||||||
5 | a monthly Energy Assistance Charge for
the Supplemental | ||||||
6 | Low-Income Energy Assistance Fund.
The delivering public | ||||||
7 | utility, municipal electric or gas utility, or electric
or gas
| ||||||
8 | cooperative for a self-assessing purchaser remains subject to | ||||||
9 | the collection of
the
fee imposed by this Section.
The
monthly | ||||||
10 | charge shall be as follows:
| ||||||
11 | (1) $0.48 per month on each account for
residential | ||||||
12 | electric service;
| ||||||
13 | (2) $0.48 per month on each account for
residential gas | ||||||
14 | service;
| ||||||
15 | (3) $4.80 per month on each account for non-residential | ||||||
16 | electric service
which had less than 10 megawatts
of peak | ||||||
17 | demand during the previous calendar year;
| ||||||
18 | (4) $4.80 per month on each account for non-residential | ||||||
19 | gas service which
had distributed to it less than
4,000,000 | ||||||
20 | therms of gas during the previous calendar year;
| ||||||
21 | (5) $360 per month on each account for non-residential | ||||||
22 | electric service
which had 10 megawatts or greater
of peak | ||||||
23 | demand during the previous calendar year; and
| ||||||
24 | (6) $360 per month on each account for non-residential | ||||||
25 | gas service
which had 4,000,000 or more therms of
gas | ||||||
26 | distributed to it during the previous calendar year. |
| |||||||
| |||||||
1 | The incremental change to such charges imposed by this | ||||||
2 | amendatory Act of the 96th General Assembly shall not (i) be | ||||||
3 | used for any purpose other than to directly assist customers | ||||||
4 | and (ii) be applicable to utilities serving less than 100,000 | ||||||
5 | customers in Illinois on January 1, 2009. | ||||||
6 | In addition, electric and gas utilities have committed, and | ||||||
7 | shall contribute, a one-time payment of $22 million to the | ||||||
8 | Fund, within 10 days after the effective date of the tariffs | ||||||
9 | established pursuant to Sections 16-111.8 and 19-145 of the | ||||||
10 | Public Utilities Act to be used for the Department's cost of | ||||||
11 | implementing the programs described in Section 18 of this | ||||||
12 | amendatory Act of the 96th General Assembly, the Arrearage | ||||||
13 | Reduction Program described in Section 18, and the programs | ||||||
14 | described in Section 8-105 of the Public Utilities Act. If a | ||||||
15 | utility elects not to file a rider within 90 days after the | ||||||
16 | effective date of this amendatory Act of the 96th General | ||||||
17 | Assembly, then the contribution from such utility shall be made | ||||||
18 | no later than February 1, 2010.
| ||||||
19 | (c) For purposes of this Section:
| ||||||
20 | (1) "residential electric service" means
electric | ||||||
21 | utility service for household purposes delivered to a
| ||||||
22 | dwelling of 2 or fewer units which is billed under a
| ||||||
23 | residential rate, or electric utility service for | ||||||
24 | household
purposes delivered to a dwelling unit or units | ||||||
25 | which is billed
under a residential rate and is registered | ||||||
26 | by a separate meter
for each dwelling unit;
|
| |||||||
| |||||||
1 | (2) "residential gas service" means gas utility
| ||||||
2 | service for household purposes distributed to a dwelling of
| ||||||
3 | 2 or fewer units which is billed under a residential rate,
| ||||||
4 | or gas utility service for household purposes distributed | ||||||
5 | to a
dwelling unit or units which is billed under a | ||||||
6 | residential
rate and is registered by a separate meter for | ||||||
7 | each dwelling
unit;
| ||||||
8 | (3) "non-residential electric service" means
electric | ||||||
9 | utility service which is not residential electric
service; | ||||||
10 | and
| ||||||
11 | (4) "non-residential gas service" means gas
utility | ||||||
12 | service which is not residential gas service.
| ||||||
13 | (d) Within 30 days after the effective date of this | ||||||
14 | amendatory Act of the 96th General Assembly, each public
| ||||||
15 | utility engaged in the delivery of electricity or the
| ||||||
16 | distribution of natural gas shall file with the Illinois
| ||||||
17 | Commerce Commission tariffs incorporating the Energy
| ||||||
18 | Assistance Charge in other charges stated in such tariffs, | ||||||
19 | which shall become effective no later than the beginning of the | ||||||
20 | first billing cycle following such filing.
| ||||||
21 | (e) The Energy Assistance Charge assessed by
electric and | ||||||
22 | gas public utilities shall be considered a charge
for public | ||||||
23 | utility service.
| ||||||
24 | (f) By the 20th day of the month following the month in | ||||||
25 | which the charges
imposed by the Section were collected, each | ||||||
26 | public
utility,
municipal utility, and electric cooperative |
| |||||||
| |||||||
1 | shall remit to the
Department of Revenue all moneys received as | ||||||
2 | payment of the
Energy Assistance Charge on a return prescribed | ||||||
3 | and furnished by the
Department of Revenue showing such | ||||||
4 | information as the Department of Revenue may
reasonably | ||||||
5 | require; provided, however, that a utility offering an | ||||||
6 | Arrearage Reduction Program pursuant to Section 18 of this Act | ||||||
7 | shall be entitled to net those amounts necessary to fund and | ||||||
8 | recover the costs of such Program as authorized by that Section | ||||||
9 | that is no more than the incremental change in such Energy | ||||||
10 | Assistance Charge authorized by this amendatory Act of the 96th | ||||||
11 | General Assembly. If a customer makes a partial payment, a | ||||||
12 | public
utility, municipal
utility, or electric cooperative may | ||||||
13 | elect either: (i) to apply
such partial payments first to | ||||||
14 | amounts owed to the
utility or cooperative for its services and | ||||||
15 | then to payment
for the Energy Assistance Charge or (ii) to | ||||||
16 | apply such partial payments
on a pro-rata basis between amounts | ||||||
17 | owed to the
utility or cooperative for its services and to | ||||||
18 | payment for the
Energy Assistance Charge.
| ||||||
19 | If any payment provided for in this Section exceeds the | ||||||
20 | public utility, municipal utility, or electric cooperative's | ||||||
21 | liabilities under this Act, as shown on an original return, the | ||||||
22 | public utility, municipal utility, or electric cooperative may | ||||||
23 | credit the excess payment against liability subsequently to be | ||||||
24 | remitted to the Department of Revenue under this Act. | ||||||
25 | (g) The Department of Revenue shall deposit into the
| ||||||
26 | Supplemental Low-Income Energy Assistance Fund all moneys
|
| |||||||
| |||||||
1 | remitted to it in accordance with subsection (f) of this
| ||||||
2 | Section; provided, however, that the amounts remitted by each | ||||||
3 | utility shall be used to provide assistance to that utility's | ||||||
4 | customers. The utilities shall coordinate with the Department | ||||||
5 | to establish an equitable and practical methodology for | ||||||
6 | implementing this subsection (g) beginning with the 2010 | ||||||
7 | program year.
| ||||||
8 | (h) On or before December 31, 2002, the Department shall
| ||||||
9 | prepare a report for the General Assembly on the expenditure of | ||||||
10 | funds
appropriated from the Low-Income Energy Assistance Block | ||||||
11 | Grant Fund for the
program authorized under Section 4 of this | ||||||
12 | Act.
| ||||||
13 | (i) The Department of Revenue may establish such
rules as | ||||||
14 | it deems necessary to implement this Section.
| ||||||
15 | (j) The Department of Commerce and Economic Opportunity
may | ||||||
16 | establish such rules as it deems necessary to implement
this | ||||||
17 | Section.
| ||||||
18 | (k) The charges imposed by this Section shall only apply to | ||||||
19 | customers of
municipal electric or gas utilities and electric | ||||||
20 | or gas cooperatives if
the municipal
electric or gas
utility or | ||||||
21 | electric or gas cooperative makes an affirmative decision to
| ||||||
22 | impose the
charge. If a municipal electric or gas utility or an | ||||||
23 | electric
cooperative makes an affirmative decision to impose | ||||||
24 | the charge provided by
this
Section, the municipal electric or | ||||||
25 | gas utility or electric cooperative shall
inform the
Department | ||||||
26 | of Revenue in writing of such decision when it begins to impose |
| |||||||
| |||||||
1 | the
charge. If a municipal electric or gas utility or electric | ||||||
2 | or gas
cooperative does not
assess
this charge, the Department | ||||||
3 | may not use funds from the Supplemental Low-Income
Energy | ||||||
4 | Assistance Fund to provide benefits to its customers under the | ||||||
5 | program
authorized by Section 4 of this Act.
| ||||||
6 | In its use of federal funds under this Act, the Department | ||||||
7 | may not cause a
disproportionate share of those federal funds | ||||||
8 | to benefit customers of systems
which do not assess the charge | ||||||
9 | provided by this Section.
| ||||||
10 | This Section is repealed effective December 31, 2018
unless
| ||||||
11 | renewed by action of the General Assembly. The General Assembly | ||||||
12 | shall
consider the results of the evaluations described in | ||||||
13 | Section 8 in its
deliberations.
| ||||||
14 | (Source: P.A. 98-429, eff. 8-16-13; 99-457, eff. 1-1-16; | ||||||
15 | 99-933, eff. 1-27-17.)
| ||||||
16 | (Text of Section after amendment by P.A. 99-906 ) | ||||||
17 | (Section scheduled to be repealed on January 1, 2025) | ||||||
18 | Sec. 13. Supplemental Low-Income Energy Assistance Fund.
| ||||||
19 | (a) The Supplemental Low-Income Energy Assistance
Fund is | ||||||
20 | hereby created as a special fund in the State
Treasury. The | ||||||
21 | Supplemental Low-Income Energy Assistance Fund
is authorized | ||||||
22 | to receive moneys from voluntary donations from individuals, | ||||||
23 | foundations, corporations, and other sources, moneys received | ||||||
24 | pursuant to Section 17, and, by statutory deposit, the moneys
| ||||||
25 | collected pursuant to this Section. The Fund is also authorized |
| |||||||
| |||||||
1 | to receive voluntary donations from individuals, foundations, | ||||||
2 | corporations, and other sources. Subject to appropriation,
the | ||||||
3 | Department shall use
moneys from the Supplemental Low-Income | ||||||
4 | Energy Assistance Fund
for payments to electric or gas public | ||||||
5 | utilities,
municipal electric or gas utilities, and electric | ||||||
6 | cooperatives
on behalf of their customers who are participants | ||||||
7 | in the
program authorized by Sections 4 and 18 of this Act, for | ||||||
8 | the provision of
weatherization services and for
| ||||||
9 | administration of the Supplemental Low-Income Energy
| ||||||
10 | Assistance Fund. The yearly expenditures for weatherization | ||||||
11 | may not exceed 10%
of the amount collected during the year | ||||||
12 | pursuant to this Section. The yearly administrative expenses of | ||||||
13 | the
Supplemental Low-Income Energy Assistance Fund may not | ||||||
14 | exceed
10% of the amount collected during that year
pursuant to | ||||||
15 | this Section, except when unspent funds from the Supplemental | ||||||
16 | Low-Income Energy Assistance Fund are reallocated from a | ||||||
17 | previous year; any unspent balance of the 10% administrative | ||||||
18 | allowance may be utilized for administrative expenses in the | ||||||
19 | year they are reallocated.
| ||||||
20 | (b) Notwithstanding the provisions of Section 16-111
of the | ||||||
21 | Public Utilities Act but subject to subsection (k) of this | ||||||
22 | Section,
each public utility, electric
cooperative, as defined | ||||||
23 | in Section 3.4 of the Electric Supplier Act,
and municipal | ||||||
24 | utility, as referenced in Section 3-105 of the Public Utilities
| ||||||
25 | Act, that is engaged in the delivery of electricity or the
| ||||||
26 | distribution of natural gas within the State of Illinois
shall, |
| |||||||
| |||||||
1 | effective January 1, 1998,
assess each of
its customer accounts | ||||||
2 | a monthly Energy Assistance Charge for
the Supplemental | ||||||
3 | Low-Income Energy Assistance Fund.
The delivering public | ||||||
4 | utility, municipal electric or gas utility, or electric
or gas
| ||||||
5 | cooperative for a self-assessing purchaser remains subject to | ||||||
6 | the collection of
the
fee imposed by this Section.
The
monthly | ||||||
7 | charge shall be as follows:
| ||||||
8 | (1) $0.48 per month on each account for
residential | ||||||
9 | electric service;
| ||||||
10 | (2) $0.48 per month on each account for
residential gas | ||||||
11 | service;
| ||||||
12 | (3) $4.80 per month on each account for non-residential | ||||||
13 | electric service
which had less than 10 megawatts
of peak | ||||||
14 | demand during the previous calendar year;
| ||||||
15 | (4) $4.80 per month on each account for non-residential | ||||||
16 | gas service which
had distributed to it less than
4,000,000 | ||||||
17 | therms of gas during the previous calendar year;
| ||||||
18 | (5) $360 per month on each account for non-residential | ||||||
19 | electric service
which had 10 megawatts or greater
of peak | ||||||
20 | demand during the previous calendar year; and
| ||||||
21 | (6) $360 per month on each account for non-residential | ||||||
22 | gas service
which had 4,000,000 or more therms of
gas | ||||||
23 | distributed to it during the previous calendar year. | ||||||
24 | The incremental change to such charges imposed by this | ||||||
25 | amendatory Act of the 96th General Assembly shall not (i) be | ||||||
26 | used for any purpose other than to directly assist customers |
| |||||||
| |||||||
1 | and (ii) be applicable to utilities serving less than 100,000 | ||||||
2 | customers in Illinois on January 1, 2009. | ||||||
3 | In addition, electric and gas utilities have committed, and | ||||||
4 | shall contribute, a one-time payment of $22 million to the | ||||||
5 | Fund, within 10 days after the effective date of the tariffs | ||||||
6 | established pursuant to Sections 16-111.8 and 19-145 of the | ||||||
7 | Public Utilities Act to be used for the Department's cost of | ||||||
8 | implementing the programs described in Section 18 of this | ||||||
9 | amendatory Act of the 96th General Assembly, the Arrearage | ||||||
10 | Reduction Program described in Section 18, and the programs | ||||||
11 | described in Section 8-105 of the Public Utilities Act. If a | ||||||
12 | utility elects not to file a rider within 90 days after the | ||||||
13 | effective date of this amendatory Act of the 96th General | ||||||
14 | Assembly, then the contribution from such utility shall be made | ||||||
15 | no later than February 1, 2010.
| ||||||
16 | (c) For purposes of this Section:
| ||||||
17 | (1) "residential electric service" means
electric | ||||||
18 | utility service for household purposes delivered to a
| ||||||
19 | dwelling of 2 or fewer units which is billed under a
| ||||||
20 | residential rate, or electric utility service for | ||||||
21 | household
purposes delivered to a dwelling unit or units | ||||||
22 | which is billed
under a residential rate and is registered | ||||||
23 | by a separate meter
for each dwelling unit;
| ||||||
24 | (2) "residential gas service" means gas utility
| ||||||
25 | service for household purposes distributed to a dwelling of
| ||||||
26 | 2 or fewer units which is billed under a residential rate,
|
| |||||||
| |||||||
1 | or gas utility service for household purposes distributed | ||||||
2 | to a
dwelling unit or units which is billed under a | ||||||
3 | residential
rate and is registered by a separate meter for | ||||||
4 | each dwelling
unit;
| ||||||
5 | (3) "non-residential electric service" means
electric | ||||||
6 | utility service which is not residential electric
service; | ||||||
7 | and
| ||||||
8 | (4) "non-residential gas service" means gas
utility | ||||||
9 | service which is not residential gas service.
| ||||||
10 | (d) Within 30 days after the effective date of this | ||||||
11 | amendatory Act of the 96th General Assembly, each public
| ||||||
12 | utility engaged in the delivery of electricity or the
| ||||||
13 | distribution of natural gas shall file with the Illinois
| ||||||
14 | Commerce Commission tariffs incorporating the Energy
| ||||||
15 | Assistance Charge in other charges stated in such tariffs, | ||||||
16 | which shall become effective no later than the beginning of the | ||||||
17 | first billing cycle following such filing.
| ||||||
18 | (e) The Energy Assistance Charge assessed by
electric and | ||||||
19 | gas public utilities shall be considered a charge
for public | ||||||
20 | utility service.
| ||||||
21 | (f) By the 20th day of the month following the month in | ||||||
22 | which the charges
imposed by the Section were collected, each | ||||||
23 | public
utility,
municipal utility, and electric cooperative | ||||||
24 | shall remit to the
Department of Revenue all moneys received as | ||||||
25 | payment of the
Energy Assistance Charge on a return prescribed | ||||||
26 | and furnished by the
Department of Revenue showing such |
| |||||||
| |||||||
1 | information as the Department of Revenue may
reasonably | ||||||
2 | require; provided, however, that a utility offering an | ||||||
3 | Arrearage Reduction Program or Supplemental Arrearage | ||||||
4 | Reduction Program pursuant to Section 18 of this Act shall be | ||||||
5 | entitled to net those amounts necessary to fund and recover the | ||||||
6 | costs of such Programs as authorized by that Section that is no | ||||||
7 | more than the incremental change in such Energy Assistance | ||||||
8 | Charge authorized by Public Act 96-33. If a customer makes a | ||||||
9 | partial payment, a public
utility, municipal
utility, or | ||||||
10 | electric cooperative may elect either: (i) to apply
such | ||||||
11 | partial payments first to amounts owed to the
utility or | ||||||
12 | cooperative for its services and then to payment
for the Energy | ||||||
13 | Assistance Charge or (ii) to apply such partial payments
on a | ||||||
14 | pro-rata basis between amounts owed to the
utility or | ||||||
15 | cooperative for its services and to payment for the
Energy | ||||||
16 | Assistance Charge.
| ||||||
17 | If any payment provided for in this Section exceeds the | ||||||
18 | public utility, municipal utility, or electric cooperative's | ||||||
19 | liabilities under this Act, as shown on an original return, the | ||||||
20 | public utility, municipal utility, or electric cooperative may | ||||||
21 | credit the excess payment against liability subsequently to be | ||||||
22 | remitted to the Department of Revenue under this Act. | ||||||
23 | (g) The Department of Revenue shall deposit into the
| ||||||
24 | Supplemental Low-Income Energy Assistance Fund all moneys
| ||||||
25 | remitted to it in accordance with subsection (f) of this
| ||||||
26 | Section; provided, however, that the amounts remitted by each |
| |||||||
| |||||||
1 | utility shall be used to provide assistance to that utility's | ||||||
2 | customers. The utilities shall coordinate with the Department | ||||||
3 | to establish an equitable and practical methodology for | ||||||
4 | implementing this subsection (g) beginning with the 2010 | ||||||
5 | program year.
| ||||||
6 | (h) On or before December 31, 2002, the Department shall
| ||||||
7 | prepare a report for the General Assembly on the expenditure of | ||||||
8 | funds
appropriated from the Low-Income Energy Assistance Block | ||||||
9 | Grant Fund for the
program authorized under Section 4 of this | ||||||
10 | Act.
| ||||||
11 | (i) The Department of Revenue may establish such
rules as | ||||||
12 | it deems necessary to implement this Section.
| ||||||
13 | (j) The Department of Commerce and Economic Opportunity
may | ||||||
14 | establish such rules as it deems necessary to implement
this | ||||||
15 | Section.
| ||||||
16 | (k) The charges imposed by this Section shall only apply to | ||||||
17 | customers of
municipal electric or gas utilities and electric | ||||||
18 | or gas cooperatives if
the municipal
electric or gas
utility or | ||||||
19 | electric or gas cooperative makes an affirmative decision to
| ||||||
20 | impose the
charge. If a municipal electric or gas utility or an | ||||||
21 | electric
cooperative makes an affirmative decision to impose | ||||||
22 | the charge provided by
this
Section, the municipal electric or | ||||||
23 | gas utility or electric cooperative shall
inform the
Department | ||||||
24 | of Revenue in writing of such decision when it begins to impose | ||||||
25 | the
charge. If a municipal electric or gas utility or electric | ||||||
26 | or gas
cooperative does not
assess
this charge, the Department |
| |||||||
| |||||||
1 | may not use funds from the Supplemental Low-Income
Energy | ||||||
2 | Assistance Fund to provide benefits to its customers under the | ||||||
3 | program
authorized by Section 4 of this Act.
| ||||||
4 | In its use of federal funds under this Act, the Department | ||||||
5 | may not cause a
disproportionate share of those federal funds | ||||||
6 | to benefit customers of systems
which do not assess the charge | ||||||
7 | provided by this Section.
| ||||||
8 | This Section is repealed on January 1, 2025
unless
renewed | ||||||
9 | by action of the General Assembly.
| ||||||
10 | (Source: P.A. 98-429, eff. 8-16-13; 99-457, eff. 1-1-16; | ||||||
11 | 99-906, eff. 6-1-17; 99-933, eff. 1-27-17; revised 2-15-17.)
| ||||||
12 | (305 ILCS 20/19 new) | ||||||
13 | Sec. 19. Application of Retailers' Occupation Tax | ||||||
14 | provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, | ||||||
15 | 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, | ||||||
16 | and 13 of the Retailers' Occupation Tax Act that are not | ||||||
17 | inconsistent with this Act apply, as far as practicable, to the | ||||||
18 | surcharge imposed by this Act to the same extent as if those | ||||||
19 | provisions were included in this Act. References in the | ||||||
20 | incorporated Sections of the Retailers' Occupation Tax Act to | ||||||
21 | retailers, to sellers, or to persons engaged in the business of | ||||||
22 | selling tangible personal property mean persons required to | ||||||
23 | remit the charge imposed under this Act.
| ||||||
24 | Section 25-95. The Environmental Protection Act is amended |
| |||||||
| |||||||
1 | by changing Section 55.10 as follows:
| ||||||
2 | (415 ILCS 5/55.10) (from Ch. 111 1/2, par. 1055.10)
| ||||||
3 | Sec. 55.10. Tax returns by retailer. | ||||||
4 | (a) Except as otherwise provided in this Section, for | ||||||
5 | returns due on or before January 31, 2010, each retailer of | ||||||
6 | tires
maintaining a place of business in this State
shall make | ||||||
7 | a return to the Department of Revenue on a quarter annual | ||||||
8 | basis,
with the return for January, February and March of a | ||||||
9 | given year being due
by April 30 of that year; with the return | ||||||
10 | for April, May and June of a
given year being due by July 31 of | ||||||
11 | that year; with the return for July, August
and September of a | ||||||
12 | given year being due by October 31 of that year; and
with the | ||||||
13 | return for October, November and December of a given year being | ||||||
14 | due
by January 31 of the following year.
| ||||||
15 | For returns due after January 31, 2010, each retailer of | ||||||
16 | tires maintaining a place of business in this State shall make | ||||||
17 | a return to the Department of Revenue on a quarter annual | ||||||
18 | basis, with the return for January, February, and March of a | ||||||
19 | given year being due by April 20 of that year; with the return | ||||||
20 | for April, May, and June of a given year being due by July 20 of | ||||||
21 | that year; with the return for July, August, and September of a | ||||||
22 | given year being due by October 20 of that year; and with the | ||||||
23 | return for October, November, and December of a given year | ||||||
24 | being due by January 20 of the following year. | ||||||
25 | Notwithstanding any other provision of this Section to the |
| |||||||
| |||||||
1 | contrary, the return for October, November, and December of | ||||||
2 | 2009 is due by February 20, 2010. | ||||||
3 | (b) Each return made to the Department of Revenue shall | ||||||
4 | state:
| ||||||
5 | (1) the name of the retailer;
| ||||||
6 | (2) the address of the retailer's principal place of | ||||||
7 | business, and the
address of the principal place of | ||||||
8 | business (if that is a different address)
from which the | ||||||
9 | retailer engages in the business of making retail sales of
| ||||||
10 | tires;
| ||||||
11 | (3) total number of tires sold at retail for the | ||||||
12 | preceding calendar
quarter;
| ||||||
13 | (4) the amount of tax due; and
| ||||||
14 | (5) such other reasonable information as the | ||||||
15 | Department of Revenue
may require.
| ||||||
16 | If any payment provided for in this Section exceeds the | ||||||
17 | retailer's liabilities under this Act, as shown on an original | ||||||
18 | return, the retailer may credit such excess payment against | ||||||
19 | liability subsequently to be remitted to the Department under | ||||||
20 | this Act, in accordance with reasonable rules adopted by the | ||||||
21 | Department. If the Department subsequently determines that all | ||||||
22 | or any part of the credit taken was not actually due to the | ||||||
23 | retailer, the retailer's discount shall be reduced by the | ||||||
24 | monetary amount of the discount applicable to the difference | ||||||
25 | between the credit taken and that actually due, and the | ||||||
26 | retailer shall be liable for penalties and interest on such |
| |||||||
| |||||||
1 | difference. | ||||||
2 | Notwithstanding any other provision of this Act concerning | ||||||
3 | the time
within which a retailer may file his return, in the | ||||||
4 | case of any retailer
who ceases to engage in the retail sale of | ||||||
5 | tires, the retailer shall file
a final return under this Act | ||||||
6 | with the Department of Revenue not more than
one month after | ||||||
7 | discontinuing that business.
| ||||||
8 | (Source: P.A. 96-520, eff. 8-14-09.)
| ||||||
9 | Section 25-100. The Environmental Impact Fee Law is amended | ||||||
10 | by changing Section 315 as follows:
| ||||||
11 | (415 ILCS 125/315)
| ||||||
12 | (Section scheduled to be repealed on January 1, 2025)
| ||||||
13 | Sec. 315.
Fee on receivers of fuel for sale or use; | ||||||
14 | collection and
reporting. A person that is required to pay the | ||||||
15 | fee imposed by this Law shall
pay the fee to the Department by | ||||||
16 | return showing all fuel purchased, acquired,
or received and | ||||||
17 | sold, distributed or used during the preceding calendar
month,
| ||||||
18 | including losses of fuel as the result of evaporation or | ||||||
19 | shrinkage due to
temperature variations, and such other | ||||||
20 | reasonable information as the
Department may require. Losses of | ||||||
21 | fuel as the result of evaporation or
shrinkage due to | ||||||
22 | temperature variations may not exceed 1%
of the total
gallons | ||||||
23 | in storage at the beginning of the month, plus the receipts of
| ||||||
24 | gallonage during the month, minus the gallonage remaining in |
| |||||||
| |||||||
1 | storage at the end
of the month. Any loss reported that is in | ||||||
2 | excess of this amount shall be
subject to the fee imposed by | ||||||
3 | Section 310 of this Law.
On and after July 1, 2001, for each | ||||||
4 | 6-month period January through June, net
losses of fuel (for | ||||||
5 | each category of fuel that is required to be reported on a
| ||||||
6 | return) as the result of evaporation or shrinkage due to | ||||||
7 | temperature variations
may not exceed 1% of the total gallons | ||||||
8 | in storage at the beginning of each
January, plus the receipts | ||||||
9 | of gallonage each January through June, minus the
gallonage | ||||||
10 | remaining in storage at the end of each June. On and after July | ||||||
11 | 1,
2001, for each 6-month period July through December, net | ||||||
12 | losses of fuel (for
each category of fuel that is required to | ||||||
13 | be reported on a return) as the
result of evaporation or | ||||||
14 | shrinkage due to temperature variations may not exceed
1% of | ||||||
15 | the total gallons in storage at the beginning of each July, | ||||||
16 | plus the
receipts of gallonage each July through December, | ||||||
17 | minus the gallonage remaining
in storage at the end of each | ||||||
18 | December. Any net loss reported that is in
excess of this | ||||||
19 | amount shall be subject to the fee imposed by Section 310 of
| ||||||
20 | this Law. For purposes of this Section, "net loss" means the | ||||||
21 | number of gallons
gained through temperature variations minus | ||||||
22 | the number of gallons lost through
temperature variations or | ||||||
23 | evaporation for each of the respective 6-month
periods.
| ||||||
24 | The return shall be prescribed by the Department and shall | ||||||
25 | be filed between
the 1st and 20th days of each calendar month. | ||||||
26 | The Department may, in its
discretion, combine the return filed |
| |||||||
| |||||||
1 | under this Law with the return filed under
Section 2b of the | ||||||
2 | Motor Fuel Tax Law. If the return is timely filed, the
receiver | ||||||
3 | may take a discount of 2% through June 30, 2003 and 1.75%
| ||||||
4 | thereafter to reimburse himself for the
expenses
incurred in | ||||||
5 | keeping records, preparing and filing returns, collecting and
| ||||||
6 | remitting the fee, and supplying data to the Department on | ||||||
7 | request. However,
the discount applies only to the amount of | ||||||
8 | the fee payment that
accompanies
a return that is timely filed | ||||||
9 | in accordance with this Section.
| ||||||
10 | If any payment provided for in this Section exceeds the | ||||||
11 | receiver's liabilities under this Act, as shown on an original | ||||||
12 | return, the Department may authorize the receiver to credit | ||||||
13 | such excess payment against liability subsequently to be | ||||||
14 | remitted to the Department under this Act, in accordance with | ||||||
15 | reasonable rules adopted by the Department. If the Department | ||||||
16 | subsequently determines that all or any part of the credit | ||||||
17 | taken was not actually due to the receiver, the receiver's | ||||||
18 | discount shall be reduced by an amount equal to the difference | ||||||
19 | between the discount as applied to the credit taken and that | ||||||
20 | actually due, and that receiver shall be liable for penalties | ||||||
21 | and interest on such difference. | ||||||
22 | (Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03 .)
| ||||||
23 | Section 25-105. The Drycleaner Environmental Response | ||||||
24 | Trust Fund Act is amended by changing Section 65 as follows:
|
| |||||||
| |||||||
1 | (415 ILCS 135/65)
| ||||||
2 | (Section scheduled to be repealed on January 1, 2020)
| ||||||
3 | Sec. 65. Drycleaning solvent tax.
| ||||||
4 | (a) On and after January 1, 1998, a tax is imposed upon
the | ||||||
5 | use of drycleaning solvent by a person engaged in the business | ||||||
6 | of operating
a drycleaning facility in this State at the rate | ||||||
7 | of $3.50 per gallon of
perchloroethylene or other chlorinated | ||||||
8 | drycleaning solvents used in
drycleaning operations, $0.35 per | ||||||
9 | gallon of
petroleum-based drycleaning solvent, and $1.75 per | ||||||
10 | gallon of green solvents,
unless the green solvent is used at a | ||||||
11 | virgin facility, in which case the rate
is $0.35 per gallon. | ||||||
12 | The Council
shall determine by rule which products are
| ||||||
13 | chlorine-based solvents, which products are petroleum-based
| ||||||
14 | solvents, and which products are green solvents. All | ||||||
15 | drycleaning solvents
shall be considered
chlorinated solvents | ||||||
16 | unless the Council determines
that the solvents are | ||||||
17 | petroleum-based drycleaning solvents or green
solvents.
| ||||||
18 | (b) The tax imposed by this Act shall be collected from the | ||||||
19 | purchaser at
the time of sale by a seller of drycleaning | ||||||
20 | solvents maintaining a place of
business in this State and | ||||||
21 | shall be remitted to the Department of Revenue under
the
| ||||||
22 | provisions of this Act.
| ||||||
23 | (c) The tax imposed by this Act that is not collected by a | ||||||
24 | seller of
drycleaning solvents shall be paid directly to the | ||||||
25 | Department of Revenue by the
purchaser or end user who is | ||||||
26 | subject to the tax imposed by this Act.
|
| |||||||
| |||||||
1 | (d) No tax shall be imposed upon the use of drycleaning | ||||||
2 | solvent if the
drycleaning solvent will not be used in a | ||||||
3 | drycleaning facility or if a floor
stock
tax has been imposed | ||||||
4 | and paid on the drycleaning solvent. Prior to the
purchase of | ||||||
5 | the solvent, the purchaser shall provide a written and signed
| ||||||
6 | certificate to the drycleaning solvent seller stating:
| ||||||
7 | (1) the name and address of the purchaser;
| ||||||
8 | (2) the purchaser's signature and date of signing; and
| ||||||
9 | (3) one of the following:
| ||||||
10 | (A) that the drycleaning solvent will not be used | ||||||
11 | in a drycleaning
facility; or
| ||||||
12 | (B) that a floor stock tax has been imposed and | ||||||
13 | paid on the drycleaning
solvent.
| ||||||
14 | (e) On January 1, 1998, there is imposed on each operator | ||||||
15 | of a
drycleaning facility a tax on drycleaning
solvent held by | ||||||
16 | the operator on that date for use in
a drycleaning facility.
| ||||||
17 | The tax imposed shall be
the tax that would have been imposed | ||||||
18 | under
subsection (a)
if the drycleaning solvent held by the | ||||||
19 | operator on that date had been
purchased
by the operator during
| ||||||
20 | the first year of this Act.
| ||||||
21 | (f) On or before the 25th day of the 1st month following | ||||||
22 | the end of the
calendar quarter, a seller of drycleaning | ||||||
23 | solvents who has collected a tax
pursuant to this Section | ||||||
24 | during the previous calendar quarter, or a purchaser
or end | ||||||
25 | user of
drycleaning solvents required under subsection (c) to | ||||||
26 | submit the tax directly
to the Department, shall file a return
|
| |||||||
| |||||||
1 | with the Department of Revenue. The return shall be filed on a | ||||||
2 | form prescribed
by the Department of Revenue and shall contain | ||||||
3 | information that the Department
of
Revenue reasonably | ||||||
4 | requires, but at a minimum will require the reporting of
the | ||||||
5 | volume of
drycleaning solvent sold to each licensed drycleaner. | ||||||
6 | The Department of Revenue
shall report quarterly to the Council | ||||||
7 | the volume of drycleaning solvent
purchased for the quarter by | ||||||
8 | each licensed drycleaner. Each seller of
drycleaning solvent | ||||||
9 | maintaining a
place of business in this State who is required | ||||||
10 | or authorized to collect the
tax imposed by this Act shall pay | ||||||
11 | to the Department the amount of the tax at
the time when he or | ||||||
12 | she is required to file his or her return for the period
during | ||||||
13 | which the tax was collected. Purchasers or end users remitting | ||||||
14 | the tax
directly to
the Department under subsection (c) shall | ||||||
15 | file a return with
the Department of Revenue and pay the tax so | ||||||
16 | incurred by the purchaser or end
user during
the preceding | ||||||
17 | calendar quarter. | ||||||
18 | Except as provided in this Section, the seller of | ||||||
19 | drycleaning solvents filing the return under this Section | ||||||
20 | shall, at the time of filing the return, pay to the Department | ||||||
21 | the amount of tax imposed by this Act less a discount of 1.75%, | ||||||
22 | or $5 per calendar year, whichever is greater. Failure to | ||||||
23 | timely file the returns and provide to the Department the data | ||||||
24 | requested under this Act will result in disallowance of the | ||||||
25 | reimbursement discount.
| ||||||
26 | (g) The tax on drycleaning solvents
used in drycleaning |
| |||||||
| |||||||
1 | facilities and the floor stock tax shall be administered by
| ||||||
2 | Department of Revenue
under rules adopted by that Department.
| ||||||
3 | (h) On and after January 1, 1998, no person shall knowingly | ||||||
4 | sell or transfer
drycleaning solvent to an operator of a | ||||||
5 | drycleaning facility that is not
licensed by the Council under | ||||||
6 | Section 60.
| ||||||
7 | (i) The Department of Revenue may adopt rules
as necessary | ||||||
8 | to implement this Section.
| ||||||
9 | (j) If any payment provided for in this Section exceeds the | ||||||
10 | seller's liabilities under this Act, as shown on an original | ||||||
11 | return, the seller may credit such excess payment against | ||||||
12 | liability subsequently to be remitted to the Department under | ||||||
13 | this Act, in accordance with reasonable rules adopted by the | ||||||
14 | Department. If the Department subsequently determines that all | ||||||
15 | or any part of the credit taken was not actually due to the | ||||||
16 | seller, the seller's discount shall be reduced by an amount | ||||||
17 | equal to the difference between the discount as applied to the | ||||||
18 | credit taken and that actually due, and the seller shall be | ||||||
19 | liable for penalties and interest on such difference. | ||||||
20 | (Source: P.A. 96-774, eff. 1-1-10.)
| ||||||
21 | ARTICLE 30. ESTATE AND GENERATION-SKIPPING TAX ACT | ||||||
22 | Section 30-5. The Illinois Estate and Generation-Skipping | ||||||
23 | Transfer Tax Act is amended by changing Section 2 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||
2 | Sec. 2. Definitions.
| ||||||
3 | "Federal estate tax" means the tax due to the United States | ||||||
4 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
5 | Internal Revenue Code.
| ||||||
6 | "Federal generation-skipping transfer tax" means the tax | ||||||
7 | due to the
United States with respect to a taxable transfer | ||||||
8 | under Chapter 13 of the
Internal Revenue Code.
| ||||||
9 | "Federal return" means the federal estate tax return with | ||||||
10 | respect to the
federal estate tax and means the federal | ||||||
11 | generation-skipping transfer tax
return
with respect to the | ||||||
12 | federal generation-skipping transfer tax.
| ||||||
13 | "Federal transfer tax" means the federal estate tax or the | ||||||
14 | federal
generation-skipping transfer tax.
| ||||||
15 | "Illinois estate tax" means the tax due to this State with | ||||||
16 | respect to a
taxable transfer.
| ||||||
17 | "Illinois generation-skipping transfer tax" means the tax | ||||||
18 | due to this State
with respect to a taxable transfer that gives | ||||||
19 | rise to a federal
generation-skipping transfer tax.
| ||||||
20 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
21 | the Illinois
generation-skipping transfer tax.
| ||||||
22 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
23 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
24 | time.
| ||||||
25 | "Non-resident trust" means a trust that is not a resident | ||||||
26 | of this State
for purposes of the Illinois Income Tax Act, as |
| |||||||
| |||||||
1 | amended from time to time.
| ||||||
2 | "Person" means and includes any individual, trust, estate, | ||||||
3 | partnership,
association, company or corporation.
| ||||||
4 | "Qualified heir" means a qualified heir as defined in | ||||||
5 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
6 | "Resident trust" means a trust that is a resident of this | ||||||
7 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
8 | from time to time.
| ||||||
9 | "State" means any state, territory or possession of the | ||||||
10 | United States and
the District of Columbia.
| ||||||
11 | "State tax credit" means:
| ||||||
12 | (a) For persons dying on or after January 1, 2003 and
| ||||||
13 | through December 31, 2005, an amount
equal
to the full credit | ||||||
14 | calculable under Section 2011 or Section 2604 of the
Internal | ||||||
15 | Revenue
Code as the credit would have been computed and allowed | ||||||
16 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
17 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
18 | provided in Section 2011(b)(2) or the termination of the State | ||||||
19 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
20 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
21 | but recognizing the increased applicable exclusion
amount
| ||||||
22 | through December 31, 2005.
| ||||||
23 | (b) For persons dying after December 31, 2005 and on or | ||||||
24 | before December 31,
2009, and for persons dying after December | ||||||
25 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
26 | Section 2011 or 2604 of the Internal Revenue Code as the
credit |
| |||||||
| |||||||
1 | would
have been computed and allowed under the Internal Revenue | ||||||
2 | Code as in effect on
December 31, 2001, without the reduction | ||||||
3 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
4 | or the termination of the State Death Tax Credit as provided
in
| ||||||
5 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
6 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
7 | exclusion amount of only (i) $2,000,000 for persons dying prior | ||||||
8 | to January 1, 2012, (ii) $3,500,000 for persons dying on or | ||||||
9 | after January 1, 2012 and prior to January 1, 2013, and (iii) | ||||||
10 | $4,000,000 for persons dying on or after January 1, 2013, and | ||||||
11 | with reduction to the adjusted taxable estate for any qualified | ||||||
12 | terminable interest property election as defined in subsection | ||||||
13 | (b-1) of this Section. For persons dying on or after July 1, | ||||||
14 | 2017, for the purposes of computing the State tax credit, the | ||||||
15 | person's adjusted taxable estate shall not include the value of | ||||||
16 | business property transferred to a qualified heir if any | ||||||
17 | qualified heir of the decedent will be engaged in active | ||||||
18 | management of the business for a period of at least 10 years | ||||||
19 | after the date of the transfer, or until the death of that | ||||||
20 | qualified heir, whichever occurs first. For the purposes of | ||||||
21 | this subsection (b):
| ||||||
22 | "Active management" means material participation, as | ||||||
23 | defined in Section 469 of the Internal Revenue Code. | ||||||
24 | "Qualified heir" means: | ||||||
25 | (1) an ancestor of the decedent; | ||||||
26 | (2) the spouse of the decedent; |
| |||||||
| |||||||
1 | (3) a lineal descendant of any of the following: | ||||||
2 | (i) the decedent, (ii) the decedent's spouse, or (iii) | ||||||
3 | a parent of the decedent; or | ||||||
4 | (4) the spouse of any lineal descendant described | ||||||
5 | in item (3). | ||||||
6 | (b-1) The person required to file the Illinois return may | ||||||
7 | elect on a timely filed Illinois return a marital deduction for | ||||||
8 | qualified terminable interest property under Section | ||||||
9 | 2056(b)(7) of the Internal Revenue Code for purposes of the | ||||||
10 | Illinois estate tax that is separate and independent of any | ||||||
11 | qualified terminable interest property election for federal | ||||||
12 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
13 | the inclusion of property in the gross estate of a surviving | ||||||
14 | spouse is the same as under Section 2044 of the Internal | ||||||
15 | Revenue Code. | ||||||
16 | In the case of any trust for which a State or federal | ||||||
17 | qualified terminable interest property election is made, the | ||||||
18 | trustee may not retain non-income producing assets for more | ||||||
19 | than a reasonable amount of time without the consent of the | ||||||
20 | surviving spouse.
| ||||||
21 | "Taxable transfer" means an event that gives rise to a | ||||||
22 | state tax credit,
including any credit as a result of the | ||||||
23 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
24 | Internal Revenue Code.
| ||||||
25 | "Transferee" means a transferee within the meaning of | ||||||
26 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue |
| |||||||
| |||||||
1 | Code.
| ||||||
2 | "Transferred property" means:
| ||||||
3 | (1) With respect to a taxable transfer occurring at the | ||||||
4 | death of an
individual, the
deceased individual's gross | ||||||
5 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
6 | Code.
| ||||||
7 | (2) With respect to a taxable transfer occurring as a | ||||||
8 | result of a
taxable termination as defined in Section | ||||||
9 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
10 | determined under Section 2622(a) of the Internal Revenue
| ||||||
11 | Code.
| ||||||
12 | (3) With respect to a taxable transfer occurring as a | ||||||
13 | result of a
taxable distribution as defined in Section | ||||||
14 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
15 | determined under Section 2621(a) of the Internal Revenue
| ||||||
16 | Code.
| ||||||
17 | (4) With respect to an event which causes the | ||||||
18 | imposition of an
additional estate tax under Section | ||||||
19 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
20 | property that was disposed of or which ceased to be used | ||||||
21 | for
the qualified use, within the meaning of Section | ||||||
22 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
23 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
24 | of the Internal
Revenue Code.
| ||||||
25 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11; | ||||||
26 | 97-636, eff. 6-1-12 .)
|
| |||||||
| |||||||
1 | ARTICLE 35. BUSINESS CORPORATION; LLCS; FEES AND PENALTIES | ||||||
2 | Section 35-5. The Business Corporation Act of 1983 is | ||||||
3 | amended by changing Sections 14.30, 15.35, 15.65, and 15.97 as | ||||||
4 | follows:
| ||||||
5 | (805 ILCS 5/14.30) (from Ch. 32, par. 14.30)
| ||||||
6 | Sec. 14.30. Cumulative report of changes in issued shares | ||||||
7 | or paid-in
capital. | ||||||
8 | (a) Each domestic corporation and each foreign | ||||||
9 | corporation
authorized to transact business in this State that | ||||||
10 | effects any change in
the number of issued shares or the amount | ||||||
11 | of paid-in capital prior to January 1, 2018 that has
not | ||||||
12 | theretofore been reported in any report other than an annual | ||||||
13 | report,
interim annual report, or final transition annual | ||||||
14 | report, shall execute and
file, in accordance with Section 1.10 | ||||||
15 | of this Act, a report with respect to
the changes in its issued | ||||||
16 | shares or paid-in capital:
| ||||||
17 | (1) that have occurred subsequent to the last day of | ||||||
18 | the third month
preceding its anniversary month in the | ||||||
19 | preceding year and prior to the
first day of the second | ||||||
20 | month immediately preceding its anniversary month
in the | ||||||
21 | current year; or
| ||||||
22 | (2) in the case of a corporation that has established | ||||||
23 | an extended
filing month, that have occurred during its |
| |||||||
| |||||||
1 | fiscal year; or
| ||||||
2 | (3) in the case of a statutory merger or consolidation | ||||||
3 | or an amendment
to the corporation's articles of | ||||||
4 | incorporation that affects the number of
issued shares or | ||||||
5 | the amount of paid-in capital,
that have
occurred between | ||||||
6 | the last day of the third month immediately preceding its
| ||||||
7 | anniversary month and the date of the merger, | ||||||
8 | consolidation, or
amendment or, in the
case of a | ||||||
9 | corporation that has established an extended filing month, | ||||||
10 | that
have occurred between the first day of its fiscal year | ||||||
11 | and the date of the
merger, consolidation, or amendment; or
| ||||||
12 | (4) in the case of a statutory merger or consolidation | ||||||
13 | or an amendment
to the corporation's articles of | ||||||
14 | incorporation that affects the number of
issued shares or | ||||||
15 | the amount of paid-in capital,
that have
occurred between | ||||||
16 | the date of the merger, consolidation, or amendment (but
| ||||||
17 | not including the merger,
consolidation, or amendment) and | ||||||
18 | the first day of the second month
immediately preceding
its | ||||||
19 | anniversary month in the current year, or in the case of a | ||||||
20 | corporation
that has established an extended filing month, | ||||||
21 | that have occurred between
the date of the merger, | ||||||
22 | consolidation or amendment (but not including the
merger, | ||||||
23 | consolidation or amendment) and the last day of
its fiscal | ||||||
24 | year.
| ||||||
25 | (b) The corporation shall file the report required under | ||||||
26 | subsection
(a) not later than (i) the time its annual report is |
| |||||||
| |||||||
1 | required to be filed in
1992 and in each subsequent year and | ||||||
2 | (ii) not later than the time of filing
the articles of merger, | ||||||
3 | consolidation, or amendment to the articles of
incorporation | ||||||
4 | that affects the number of issued shares or the amount of | ||||||
5 | paid-in
capital of a domestic corporation or the certified copy | ||||||
6 | of
merger
of a foreign corporation.
| ||||||
7 | (c) The report shall net decreases against increases that | ||||||
8 | occur during
the same taxable period. The report shall set | ||||||
9 | forth:
| ||||||
10 | (1) The name of the corporation and the state or | ||||||
11 | country under the laws
of which it is organized.
| ||||||
12 | (2) A statement of the aggregate number of shares which | ||||||
13 | the corporation
has authority to issue, itemized by classes | ||||||
14 | and series, if any, within a class.
| ||||||
15 | (3) A statement of the aggregate number of issued | ||||||
16 | shares as last
reported to the Secretary of State in any | ||||||
17 | document required or permitted by
this Act to be filed, | ||||||
18 | other than an annual report, interim annual report or
final | ||||||
19 | transition annual report, itemized by classes and series, | ||||||
20 | if any,
within a class.
| ||||||
21 | (4) A statement, expressed in dollars, of the amount of | ||||||
22 | paid-in capital
of the corporation as last reported to the | ||||||
23 | Secretary of State in any
document required or permitted by | ||||||
24 | this Act to be filed, other than an
annual report, interim | ||||||
25 | annual report or final transition annual report.
| ||||||
26 | (5) A statement, if applicable, of the aggregate number |
| |||||||
| |||||||
1 | of shares
issued by the corporation not theretofore | ||||||
2 | reported to the Secretary of
State as having been issued, | ||||||
3 | and a statement, expressed in dollars, of the
value of the | ||||||
4 | entire consideration received, less expenses, including
| ||||||
5 | commissions, paid or incurred in connection with the | ||||||
6 | issuance, for, or on
account of, the issuance of the | ||||||
7 | shares, itemized by
classes, and series, if any, within a | ||||||
8 | class; and in the case of shares
issued as a share | ||||||
9 | dividend, the amount added or transferred to the paid-in
| ||||||
10 | capital of the corporation for, or on account of, the | ||||||
11 | issuance of the
shares; provided, however, that the report | ||||||
12 | shall also include the date of
each issuance made prior to | ||||||
13 | the current reporting period, and the number of
issued | ||||||
14 | shares and consideration received in each case.
| ||||||
15 | (6) A statement, if applicable, expressed in dollars, | ||||||
16 | of the amount
added or transferred to paid-in capital of | ||||||
17 | the corporation without the
issuance of shares; provided, | ||||||
18 | however, that the report shall also include
the date of | ||||||
19 | each increase made prior to the current reporting period, | ||||||
20 | and
the consideration received in each case.
| ||||||
21 | (7) In case of an exchange or reclassification of | ||||||
22 | issued shares
resulting in an increase in the amount of | ||||||
23 | paid-in capital, a statement of
the manner in which it was | ||||||
24 | effected, and a statement, expressed in dollars, of
the | ||||||
25 | amount added or transferred to the paid-in capital of the | ||||||
26 | corporation
as a result thereof, except any portion thereof |
| |||||||
| |||||||
1 | reported under any other
subsection of this Section as a | ||||||
2 | part of the consideration received by the
corporation for, | ||||||
3 | or on account of, its issued shares; provided, however,
| ||||||
4 | that the report shall also include the date of each | ||||||
5 | exchange or
reclassification made prior to the current | ||||||
6 | reporting period and the
consideration received in each | ||||||
7 | case.
| ||||||
8 | (8) If the consideration received for the issuance of | ||||||
9 | any shares not
theretofore reported as having been issued | ||||||
10 | consists of labor or services
performed or of property, | ||||||
11 | other than cash, then a statement, expressed in
dollars, of | ||||||
12 | the value of that consideration as fixed by the board of
| ||||||
13 | directors.
| ||||||
14 | (9) In the case of a cancellation of shares or a | ||||||
15 | reduction in paid-in
capital made pursuant to Section 9.20, | ||||||
16 | the aggregate
reduction in paid-in capital;
provided, | ||||||
17 | however, that the report shall also include the date of | ||||||
18 | each
reduction made prior to the current reporting period.
| ||||||
19 | (10) A statement of the aggregate number of issued | ||||||
20 | shares itemized by
classes and series, if any, within a | ||||||
21 | class, after giving effect to the
changes reported.
| ||||||
22 | (11) A statement, expressed in dollars, of the amount | ||||||
23 | of paid-in capital
of the corporation after giving effect | ||||||
24 | to the changes reported.
| ||||||
25 | (d) No additional license fees or franchise taxes shall be | ||||||
26 | payable
upon the filing of the report to the extent that |
| |||||||
| |||||||
1 | license fees or franchise
taxes shall have been previously paid | ||||||
2 | by the corporation in respect of
shares previously issued which | ||||||
3 | are being exchanged for the shares the
issuance of which is | ||||||
4 | being reported, provided those facts are shown in
the report.
| ||||||
5 | (e) The report shall be made on forms prescribed and | ||||||
6 | furnished by the
Secretary of State.
| ||||||
7 | (f) Until the report under this Section or a report under | ||||||
8 | Section 14.25
shall have been filed in the Office of the | ||||||
9 | Secretary of State showing a
reduction in paid-in capital, the | ||||||
10 | basis of the annual franchise tax payable
by the corporation | ||||||
11 | shall not be reduced, provided, however, in no event
shall the | ||||||
12 | annual franchise tax for any taxable year be reduced if the
| ||||||
13 | report is not filed prior to the first day of the anniversary | ||||||
14 | month or, in
the case of a corporation which has established an | ||||||
15 | extended filing month,
the extended filing month of the | ||||||
16 | corporation of that taxable year and
before payment of its | ||||||
17 | annual franchise tax.
| ||||||
18 | (Source: P.A. 90-421, eff. 1-1-98.)
| ||||||
19 | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
| ||||||
20 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
21 | corporations. For the privilege of exercising its franchises in | ||||||
22 | this State, each
domestic corporation shall pay to the | ||||||
23 | Secretary of State the following
franchise taxes, computed on | ||||||
24 | the basis, at the rates and for the periods
prescribed in this | ||||||
25 | Act:
|
| |||||||
| |||||||
1 | (a) An initial franchise tax at the time of filing its | ||||||
2 | first report of
issuance of shares.
| ||||||
3 | (b) An additional franchise tax at the time of filing (1) a | ||||||
4 | report of
the issuance of additional shares, or (2) a report of | ||||||
5 | an increase in paid-in
capital without the issuance of shares, | ||||||
6 | or (3) an amendment to the articles
of incorporation or a | ||||||
7 | report of cumulative changes in paid-in capital,
whenever any | ||||||
8 | amendment or such report discloses an increase in its paid-in
| ||||||
9 | capital over the amount thereof last reported in any document, | ||||||
10 | other than
an annual report, interim annual report or final | ||||||
11 | transition annual report
required by this Act to be filed in | ||||||
12 | the office of the Secretary of State.
| ||||||
13 | (c) An additional franchise tax at the time of filing a | ||||||
14 | report of paid-in
capital following a statutory merger or | ||||||
15 | consolidation, which discloses that
the paid-in capital of the | ||||||
16 | surviving or new corporation immediately after
the merger or | ||||||
17 | consolidation is greater than the sum of the paid-in capital
of | ||||||
18 | all of the merged or consolidated corporations as last reported
| ||||||
19 | by them in any documents, other than annual reports, required | ||||||
20 | by this Act
to be filed in the office of the Secretary of | ||||||
21 | State; and in addition, the
surviving or new corporation shall | ||||||
22 | be liable for a further additional franchise
tax on the paid-in | ||||||
23 | capital of each of the merged or consolidated
corporations as | ||||||
24 | last reported by them in any document, other than an annual
| ||||||
25 | report, required by this Act to be filed with the Secretary of | ||||||
26 | State from
their taxable year end to the next succeeding |
| |||||||
| |||||||
1 | anniversary month or, in
the case of a corporation which has | ||||||
2 | established an extended filing month,
the extended filing month | ||||||
3 | of the surviving or new corporation; however if
the taxable | ||||||
4 | year ends within the 2 month period immediately preceding the
| ||||||
5 | anniversary month or, in the case of a corporation which has | ||||||
6 | established an
extended filing month, the extended filing month | ||||||
7 | of the surviving or new
corporation the tax will be computed to | ||||||
8 | the anniversary month or, in the
case of a corporation which | ||||||
9 | has established an extended filing month, the
extended filing | ||||||
10 | month of the surviving or new corporation in the next
| ||||||
11 | succeeding calendar year.
| ||||||
12 | (d) An annual franchise tax payable each year with the | ||||||
13 | annual report
which the corporation is required by this Act to | ||||||
14 | file.
| ||||||
15 | (e) The provisions of this Section shall not apply to | ||||||
16 | require the payment of any franchise tax that would otherwise | ||||||
17 | have been due and payable on or after January 1, 2018. There | ||||||
18 | shall be no refunds or proration of franchise tax for any taxes | ||||||
19 | due and payable prior to January 1, 2018 on the basis that a | ||||||
20 | portion of the corporation's taxable year extends beyond | ||||||
21 | January 1, 2018. This amendatory Act of the 100th General | ||||||
22 | Assembly shall not affect any right accrued or established, or | ||||||
23 | any liability or penalty incurred prior to January 1, 2018. | ||||||
24 | (Source: P.A. 86-985.)
| ||||||
25 | (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
|
| |||||||
| |||||||
1 | Sec. 15.65. Franchise taxes payable by foreign | ||||||
2 | corporations. For the privilege of exercising its authority to | ||||||
3 | transact such business
in this State as set out in its | ||||||
4 | application therefor or any amendment
thereto, each foreign | ||||||
5 | corporation shall pay to the Secretary of State the
following | ||||||
6 | franchise taxes, computed on the basis, at the rates and for | ||||||
7 | the
periods prescribed in this Act:
| ||||||
8 | (a) An initial franchise tax at the time of filing its | ||||||
9 | application for
authority to transact business in this State.
| ||||||
10 | (b) An additional franchise tax at the time of filing (1) a | ||||||
11 | report of
the issuance of additional shares, or (2) a report of | ||||||
12 | an increase in paid-in
capital without the issuance of shares, | ||||||
13 | or (3) a report of cumulative
changes in paid-in capital or a | ||||||
14 | report of an exchange or reclassification
of shares, whenever | ||||||
15 | any such report discloses an increase in its paid-in
capital | ||||||
16 | over the amount thereof last reported in any document, other | ||||||
17 | than
an annual report, interim annual report or final | ||||||
18 | transition annual report,
required by this Act to be filed in | ||||||
19 | the office of the Secretary of State.
| ||||||
20 | (c) Whenever the corporation shall be a party to a | ||||||
21 | statutory merger and
shall be the surviving corporation, an | ||||||
22 | additional franchise tax at the time
of filing its report | ||||||
23 | following merger, if such report discloses that the
amount | ||||||
24 | represented in this State of its paid-in capital immediately | ||||||
25 | after
the merger is greater than the aggregate of the amounts | ||||||
26 | represented in this
State of the paid-in capital of such of the |
| |||||||
| |||||||
1 | merged corporations as were
authorized to transact business in | ||||||
2 | this State at the time of the merger, as
last reported by them | ||||||
3 | in any documents, other than annual reports, required
by this | ||||||
4 | Act to be filed in the office of the Secretary of State; and in
| ||||||
5 | addition, the surviving corporation shall be liable for a | ||||||
6 | further
additional franchise tax on the paid-in capital of each | ||||||
7 | of the merged
corporations as last reported by them in any | ||||||
8 | document, other than an annual
report, required by this Act to | ||||||
9 | be filed with the Secretary
of State, from their taxable year | ||||||
10 | end to the next succeeding anniversary
month or, in the case of | ||||||
11 | a corporation which has established an extended
filing month, | ||||||
12 | the extended filing month of the surviving corporation;
however | ||||||
13 | if the taxable year ends within the 2 month period immediately
| ||||||
14 | preceding the anniversary month or the extended filing month of | ||||||
15 | the
surviving corporation, the tax will be computed to the | ||||||
16 | anniversary or,
extended filing month of the surviving | ||||||
17 | corporation in the next succeeding
calendar year.
| ||||||
18 | (d) An annual franchise tax payable each year with any
| ||||||
19 | annual report which the corporation is required by this Act to | ||||||
20 | file.
| ||||||
21 | (e) The provisions of this Section shall not apply to | ||||||
22 | require the payment of any franchise tax that would otherwise | ||||||
23 | have been due and payable on or after January 1, 2018. There | ||||||
24 | shall be no refunds or proration of franchise tax for any taxes | ||||||
25 | due and payable prior to January 1, 2018 on the basis that a | ||||||
26 | portion of the corporation's taxable year extends beyond |
| |||||||
| |||||||
1 | January 1, 2018. This amendatory Act of the 100th General | ||||||
2 | Assembly shall not affect any right accrued or established, or | ||||||
3 | any liability or penalty incurred prior to January 1, 2018. | ||||||
4 | (Source: P.A. 92-33, eff. 7-1-01.)
| ||||||
5 | (805 ILCS 5/15.97) (from Ch. 32, par. 15.97)
| ||||||
6 | Sec. 15.97. Corporate Franchise Tax Refund Fund.
| ||||||
7 | (a) Beginning July 1, 1993, a percentage of the amounts | ||||||
8 | collected
under Sections 15.35, 15.45, 15.65, and 15.75 of this | ||||||
9 | Act shall be
deposited into the Corporate Franchise Tax Refund | ||||||
10 | Fund, a special Fund
hereby created in the State treasury. From | ||||||
11 | July 1, 1993, until December 31,
1994, there shall be deposited | ||||||
12 | into the Fund 3% of the amounts received
under those Sections. | ||||||
13 | Beginning January 1, 1995, and for each fiscal year
beginning | ||||||
14 | thereafter, 2% of the amounts collected under those Sections
| ||||||
15 | during the preceding fiscal year shall be deposited into the | ||||||
16 | Fund.
| ||||||
17 | (b) Beginning July 1, 1993, moneys in the Fund shall be | ||||||
18 | expended
exclusively for the purpose of paying refunds payable | ||||||
19 | because of overpayment
of franchise taxes, penalties, or | ||||||
20 | interest under Sections 13.70, 15.35,
15.45, 15.65, 15.75, and | ||||||
21 | 16.05 of this
Act and making transfers authorized under this | ||||||
22 | Section. Refunds in
accordance with the provisions of | ||||||
23 | subsections (f) and (g) of Section 1.15
and Section 1.17 of | ||||||
24 | this Act may be made from the Fund only to the extent that
| ||||||
25 | amounts collected under Sections 15.35, 15.45, 15.65, and 15.75 |
| |||||||
| |||||||
1 | of this Act
have been deposited in the Fund and remain | ||||||
2 | available. On or before August 31 of each year, the balance in | ||||||
3 | the Fund in excess of $100,000 shall be transferred to the | ||||||
4 | General Revenue Fund. Notwithstanding the above, for the period | ||||||
5 | commencing on the effective date of this amendatory Act of the | ||||||
6 | 100th General Assembly and continuing through December 31, | ||||||
7 | 2020, amounts in the fund shall not be transferred to the | ||||||
8 | General Revenue Fund and shall be used to pay refunds in | ||||||
9 | accordance with the provisions of this Act. Within a reasonable | ||||||
10 | time after January 1, 2021, the Secretary of State shall direct | ||||||
11 | and the Comptroller shall order transferred to the General | ||||||
12 | Revenue Fund all amounts remaining in the fund.
| ||||||
13 | (c) This Act shall constitute an irrevocable and continuing
| ||||||
14 | appropriation from the Corporate Franchise Tax Refund Fund for | ||||||
15 | the purpose
of paying refunds upon the order of the Secretary | ||||||
16 | of State in accordance
with the provisions of this Section.
| ||||||
17 | (Source: P.A. 99-620, eff. 1-1-17 .)
| ||||||
18 | Section 35-10. The Limited Liability Company Act is amended | ||||||
19 | by changing Section 50-10 as follows:
| ||||||
20 | (805 ILCS 180/50-10)
| ||||||
21 | (Text of Section before amendment by P.A. 99-637 )
| ||||||
22 | Sec. 50-10. Fees.
| ||||||
23 | (a) The Secretary of State shall charge and collect in
| ||||||
24 | accordance with the provisions of this Act and rules
|
| |||||||
| |||||||
1 | promulgated under its authority all of the following:
| ||||||
2 | (1) Fees for filing documents.
| ||||||
3 | (2) Miscellaneous charges.
| ||||||
4 | (3) Fees for the sale of lists of filings and for | ||||||
5 | copies
of any documents.
| ||||||
6 | (b) The Secretary of State shall charge and collect for
all | ||||||
7 | of the following:
| ||||||
8 | (1) Filing articles of organization (domestic), | ||||||
9 | application for
admission (foreign), and restated articles | ||||||
10 | of
organization (domestic), $150 $500 . Notwithstanding the | ||||||
11 | foregoing, the fee for filing articles of organization | ||||||
12 | (domestic), application for admission (foreign), and | ||||||
13 | restated articles of organization (domestic) in connection | ||||||
14 | with a limited liability company with ability to establish | ||||||
15 | series pursuant to Section 37-40 of this Act is $400 $750 .
| ||||||
16 | (2) Filing articles of amendment or an amended | ||||||
17 | application for admission, $50 $150 .
| ||||||
18 | (3) Filing articles of dissolution or
application
for | ||||||
19 | withdrawal, $5 $100 .
| ||||||
20 | (4) Filing an application to reserve a name, $25 $300 .
| ||||||
21 | (5) Filing a notice of cancellation of a reserved name, | ||||||
22 | $5 $100 .
| ||||||
23 | (6) Filing a notice of a transfer of a reserved
name, | ||||||
24 | $25 $100 .
| ||||||
25 | (7) Registration of a name, $50 $300 .
| ||||||
26 | (8) Renewal of registration of a name, $50 $100 .
|
| |||||||
| |||||||
1 | (9) Filing an application for use of an assumed
name | ||||||
2 | under Section 1-20 of this Act, $150 for each
year or part | ||||||
3 | thereof ending in 0 or 5, $120 for each year or
part | ||||||
4 | thereof ending in 1 or 6, $90 for each year or part thereof | ||||||
5 | ending in 2 or
7, $60 for each year or part thereof ending | ||||||
6 | in 3 or 8, $30 for each year or
part thereof ending in 4 or | ||||||
7 | 9, and a renewal for each assumed name, $150.
| ||||||
8 | (9.5) Filing an application for change of an assumed | ||||||
9 | name, $25. | ||||||
10 | (10) Filing an application for change or cancellation | ||||||
11 | of an assumed
name, $5 $100 .
| ||||||
12 | (11) Filing an annual report of a limited liability
| ||||||
13 | company or foreign limited liability company, $75 $250 , if
| ||||||
14 | filed as required by this Act, plus a penalty if
| ||||||
15 | delinquent. Notwithstanding the foregoing, the fee for | ||||||
16 | filing an annual report of a limited liability company or | ||||||
17 | foreign limited liability company with ability to | ||||||
18 | establish series is $75 $250 plus $50 for each series for | ||||||
19 | which a certificate of designation has been filed pursuant | ||||||
20 | to Section 37-40 of this Act and active on the last day of | ||||||
21 | the third month preceding the company's anniversary month, | ||||||
22 | plus a penalty if delinquent.
| ||||||
23 | (12) Filing an application for reinstatement of a
| ||||||
24 | limited liability company or foreign limited liability
| ||||||
25 | company $200
$500 .
| ||||||
26 | (13) Filing Articles of Merger, $100 plus $50 for each |
| |||||||
| |||||||
1 | party to the
merger in excess of the first 2 parties.
| ||||||
2 | (14) Filing an Agreement of Conversion or Statement of | ||||||
3 | Conversion, $100.
| ||||||
4 | (15) Filing a statement of change of address of | ||||||
5 | registered office or change of registered agent, or both, | ||||||
6 | or filing a statement of correction, $25.
| ||||||
7 | (16) Filing a petition for refund, $5 $15 .
| ||||||
8 | (17) Filing any other document, $5 $100 .
| ||||||
9 | (18) Filing a certificate of designation of a limited | ||||||
10 | liability company with the ability to establish series | ||||||
11 | pursuant to Section 37-40 of this Act, $50.
| ||||||
12 | (c) The Secretary of State shall charge and collect all
of | ||||||
13 | the following:
| ||||||
14 | (1) For furnishing a copy or certified copy of any
| ||||||
15 | document, instrument, or paper relating to a limited
| ||||||
16 | liability company or foreign limited liability company,
or | ||||||
17 | for a certificate, $25.
| ||||||
18 | (2) For the transfer of information by computer
process | ||||||
19 | media to any purchaser, fees established by
rule.
| ||||||
20 | (Source: P.A. 97-839, eff. 7-20-12.)
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21 | (Text of Section after amendment by P.A. 99-637 )
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22 | Sec. 50-10. Fees.
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23 | (a) The Secretary of State shall charge and collect in
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24 | accordance with the provisions of this Act and rules
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25 | promulgated under its authority all of the following:
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1 | (1) Fees for filing documents.
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2 | (2) Miscellaneous charges.
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3 | (3) Fees for the sale of lists of filings and for | ||||||
4 | copies
of any documents.
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5 | (b) The Secretary of State shall charge and collect for
all | ||||||
6 | of the following:
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7 | (1) Filing articles of organization (domestic), | ||||||
8 | application for
admission (foreign), and restated articles | ||||||
9 | of
organization (domestic), $150 $500 . Notwithstanding the | ||||||
10 | foregoing, the fee for filing articles of organization | ||||||
11 | (domestic), application for admission (foreign), and | ||||||
12 | restated articles of organization (domestic) in connection | ||||||
13 | with a limited liability company with a series or the | ||||||
14 | ability to establish a series pursuant to Section 37-40 of | ||||||
15 | this Act is $400 $750 .
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16 | (2) Filing amendments (domestic or foreign), $50 $150 .
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17 | (3) Filing a statement of termination or
application
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18 | for withdrawal, $5 $25 .
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19 | (4) Filing an application to reserve a name, $25 $300 .
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20 | (5) Filing a notice of cancellation of a reserved name, | ||||||
21 | $5 $100 .
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22 | (6) Filing a notice of a transfer of a reserved
name, | ||||||
23 | $25 $100 .
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24 | (7) Registration of a name, $50 $300 .
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25 | (8) Renewal of registration of a name, $50 $100 .
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26 | (9) Filing an application for use of an assumed
name |
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1 | under Section 1-20 of this Act, $150 for each
year or part | ||||||
2 | thereof ending in 0 or 5, $120 for each year or
part | ||||||
3 | thereof ending in 1 or 6, $90 for each year or part thereof | ||||||
4 | ending in 2 or
7, $60 for each year or part thereof ending | ||||||
5 | in 3 or 8, $30 for each year or
part thereof ending in 4 or | ||||||
6 | 9, and a renewal for each assumed name, $150.
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7 | (9.5) Filing an application for change of an assumed | ||||||
8 | name, $25. | ||||||
9 | (10) Filing an application for change or cancellation | ||||||
10 | of an assumed
name, $5 $100 .
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11 | (11) Filing an annual report of a limited liability
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12 | company or foreign limited liability company, $75 $250 , if
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13 | filed as required by this Act, plus a penalty if
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14 | delinquent. Notwithstanding the foregoing, the fee for | ||||||
15 | filing an annual report of a limited liability company or | ||||||
16 | foreign limited liability company is $75 $250 plus $50 for | ||||||
17 | each series for which a certificate of designation has been | ||||||
18 | filed pursuant to Section 37-40 of this Act and is in | ||||||
19 | effect on the last day of the third month preceding the | ||||||
20 | company's anniversary month, plus a penalty if delinquent.
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21 | (12) Filing an application for reinstatement of a
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22 | limited liability company or foreign limited liability
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23 | company $200
$500 .
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24 | (13) Filing articles of merger, $100 plus $50 for each | ||||||
25 | party to the
merger in excess of the first 2 parties.
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26 | (14) Filing articles of conversion, $100.
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1 | (15) Filing a statement of change of address of | ||||||
2 | registered office or change of registered agent, or both, | ||||||
3 | or filing a statement of correction, $25.
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4 | (16) Filing a petition for refund, $5 $15 .
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5 | (17) Filing a certificate of designation of a limited | ||||||
6 | liability company with a series pursuant to Section 37-40 | ||||||
7 | of this Act, $50. | ||||||
8 | (18) Filing articles of domestication, $100. | ||||||
9 | (19) Filing, amending, or cancelling a statement of | ||||||
10 | authority, $50. | ||||||
11 | (20) Filing, amending, or cancelling a statement of | ||||||
12 | denial, $10. | ||||||
13 | (21) Filing any other document, $5 $100 .
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14 | (c) The Secretary of State shall charge and collect all
of | ||||||
15 | the following:
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16 | (1) For furnishing a copy or certified copy of any
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17 | document, instrument, or paper relating to a limited
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18 | liability company or foreign limited liability company,
or | ||||||
19 | for a certificate, $25.
| ||||||
20 | (2) For the transfer of information by computer
process | ||||||
21 | media to any purchaser, fees established by
rule.
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22 | (Source: P.A. 99-637, eff. 7-1-17.)
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23 | ARTICLE 90. BUSINESS OCCUPATION | ||||||
24 | ASSESSMENT ACT |
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1 | Section 90-1. Short title. This Act may be cited as the | ||||||
2 | Business Occupation Assessment Act.
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3 | Section 90-10. Business Occupation Assessment.
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4 | (a) For each taxable year ending on or after December 31, | ||||||
5 | 2017, a corporation transacting business in this State shall be | ||||||
6 | subject to a business occupation assessment. For taxable years | ||||||
7 | ending on December 31, 2017, the assessment shall be equal to | ||||||
8 | $5,000. On January 1, 2018, and on January 1 of each year | ||||||
9 | thereafter, the amount of the assessment imposed under this | ||||||
10 | subsection (a) shall be adjusted for inflation as determined by | ||||||
11 | the Consumer Price Index for All Urban Consumers, as issued by | ||||||
12 | the United States Department of Labor, and rounded to the | ||||||
13 | nearest $50. Each corporation subject to the assessment under | ||||||
14 | this Act shall be liable for the assessment amount in effect on | ||||||
15 | the last day of its taxable year. If the taxable year of the | ||||||
16 | corporation is less than 365 days, then the amount of the | ||||||
17 | assessment shall be the otherwise applicable assessment amount | ||||||
18 | multiplied by a fraction the numerator of which is the number | ||||||
19 | of days in the corporation's taxable year and the denominator | ||||||
20 | of which is 365. | ||||||
21 | (b) The taxable year of the corporation shall be its | ||||||
22 | taxable year under Section 401 of the Illinois Income Tax Act. | ||||||
23 | The business occupation assessment for each taxable year shall | ||||||
24 | be reported by taxpayers that are subject to the assessment on | ||||||
25 | the taxpayer's Illinois corporate income tax return and shall |
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1 | be due and payable to the Department of Revenue on the due date | ||||||
2 | prescribed under Section 601 of the Illinois Income Tax Act for | ||||||
3 | payment of the corporation's liability under that Act.
| ||||||
4 | (c) The provisions in the Illinois Income Tax Act for | ||||||
5 | assessment, collection, and refund of overpayments of tax shall | ||||||
6 | apply to the business occupation assessment as if the | ||||||
7 | assessment were imposed under the Illinois Income Tax Act. The | ||||||
8 | Department of Revenue shall adopt rules to determine procedures | ||||||
9 | for refunding a business occupation assessment that is paid in | ||||||
10 | error.
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11 | (d) For purposes of this Act, a corporation is considered | ||||||
12 | to be transacting business in this State if the corporation is | ||||||
13 | required to register with the Secretary of State and is not | ||||||
14 | excluded under the provisions of Section 13.75 of the Business | ||||||
15 | Corporation Act of 1983. Subchapter S corporations and | ||||||
16 | corporations recognized by the United States Internal Revenue | ||||||
17 | Service as tax-exempt organizations under Section 501(c)(3) of | ||||||
18 | the Internal Revenue Code are not considered to be transacting | ||||||
19 | business in this State for the purposes of this Act.
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20 | ARTICLE 95. NON-ACCELERATION | ||||||
21 | Section 95-995. No acceleration or delay. Where this Act | ||||||
22 | makes changes in a statute that is represented in this Act by | ||||||
23 | text that is not yet or no longer in effect (for example, a | ||||||
24 | Section represented by multiple versions), the use of that text |
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| |||||||
1 | does not accelerate or delay the taking effect of (i) the | ||||||
2 | changes made by this Act or (ii) provisions derived from any | ||||||
3 | other Public Act.
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4 | ARTICLE 99. EFFECTIVE DATE |