Bill Text: IL HB0819 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Retailers' Occupation Tax Act. Provides that certificates of registration that are issued or renewed on or after July 1, 2017 shall expire one year (currently, 5 years) after the issuance or last renewal of that certificate of registration. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Engrossed) 2017-05-26 - Rule 2-10 Third Reading Deadline Established As May 31, 2017 [HB0819 Detail]

Download: Illinois-2017-HB0819-Engrossed.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 2a as follows:
6 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
7 Sec. 2a. It is unlawful for any person to engage in the
8business of selling tangible personal property at retail in
9this State without a certificate of registration from the
10Department. Application for a certificate of registration
11shall be made to the Department upon forms furnished by it.
12Each such application shall be signed and verified and shall
13state: (1) the name and social security number of the
14applicant; (2) the address of his principal place of business;
15(3) the address of the principal place of business from which
16he engages in the business of selling tangible personal
17property at retail in this State and the addresses of all other
18places of business, if any (enumerating such addresses, if any,
19in a separate list attached to and made a part of the
20application), from which he engages in the business of selling
21tangible personal property at retail in this State; (4) the
22name and address of the person or persons who will be
23responsible for filing returns and payment of taxes due under

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1this Act; (5) in the case of a publicly traded corporation, the
2name and title of the Chief Financial Officer, Chief Operating
3Officer, and any other officer or employee with responsibility
4for preparing tax returns under this Act, along with the last 4
5digits of each of their social security numbers, and, in the
6case of all other corporations, the name, title, and social
7security number of each corporate officer; (6) in the case of a
8limited liability company, the name, social security number,
9and FEIN number of each manager and member; and (7) such other
10information as the Department may reasonably require. The
11application shall contain an acceptance of responsibility
12signed by the person or persons who will be responsible for
13filing returns and payment of the taxes due under this Act. If
14the applicant will sell tangible personal property at retail
15through vending machines, his application to register shall
16indicate the number of vending machines to be so operated. If
17requested by the Department at any time, that person shall
18verify the total number of vending machines he or she uses in
19his or her business of selling tangible personal property at
20retail.
21 The Department may deny a certificate of registration to
22any applicant if a person who is named as the owner, a partner,
23a manager or member of a limited liability company, or a
24corporate officer of the applicant on the application for the
25certificate of registration is or has been named as the owner,
26a partner, a manager or member of a limited liability company,

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1or a corporate officer on the application for the certificate
2of registration of another retailer that is in default for
3moneys due under this Act or any other tax or fee Act
4administered by the Department. For purposes of this paragraph
5only, in determining whether a person is in default for moneys
6due, the Department shall include only amounts established as a
7final liability within the 20 years prior to the date of the
8Department's notice of denial of a certificate of registration.
9 The Department may require an applicant for a certificate
10of registration hereunder to, at the time of filing such
11application, furnish a bond from a surety company authorized to
12do business in the State of Illinois, or an irrevocable bank
13letter of credit or a bond signed by 2 personal sureties who
14have filed, with the Department, sworn statements disclosing
15net assets equal to at least 3 times the amount of the bond to
16be required of such applicant, or a bond secured by an
17assignment of a bank account or certificate of deposit, stocks
18or bonds, conditioned upon the applicant paying to the State of
19Illinois all moneys becoming due under this Act and under any
20other State tax law or municipal or county tax ordinance or
21resolution under which the certificate of registration that is
22issued to the applicant under this Act will permit the
23applicant to engage in business without registering separately
24under such other law, ordinance or resolution. In making a
25determination as to whether to require a bond or other
26security, the Department shall take into consideration whether

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1the owner, any partner, any manager or member of a limited
2liability company, or a corporate officer of the applicant is
3or has been the owner, a partner, a manager or member of a
4limited liability company, or a corporate officer of another
5retailer that is in default for moneys due under this Act or
6any other tax or fee Act administered by the Department; and
7whether the owner, any partner, any manager or member of a
8limited liability company, or a corporate officer of the
9applicant is or has been the owner, a partner, a manager or
10member of a limited liability company, or a corporate officer
11of another retailer whose certificate of registration has been
12revoked within the previous 5 years under this Act or any other
13tax or fee Act administered by the Department. If a bond or
14other security is required, the Department shall fix the amount
15of the bond or other security, taking into consideration the
16amount of money expected to become due from the applicant under
17this Act and under any other State tax law or municipal or
18county tax ordinance or resolution under which the certificate
19of registration that is issued to the applicant under this Act
20will permit the applicant to engage in business without
21registering separately under such other law, ordinance, or
22resolution. The amount of security required by the Department
23shall be such as, in its opinion, will protect the State of
24Illinois against failure to pay the amount which may become due
25from the applicant under this Act and under any other State tax
26law or municipal or county tax ordinance or resolution under

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1which the certificate of registration that is issued to the
2applicant under this Act will permit the applicant to engage in
3business without registering separately under such other law,
4ordinance or resolution, but the amount of the security
5required by the Department shall not exceed three times the
6amount of the applicant's average monthly tax liability, or
7$50,000.00, whichever amount is lower.
8 No certificate of registration under this Act shall be
9issued by the Department until the applicant provides the
10Department with satisfactory security, if required, as herein
11provided for.
12 Upon receipt of the application for certificate of
13registration in proper form, and upon approval by the
14Department of the security furnished by the applicant, if
15required, the Department shall issue to such applicant a
16certificate of registration which shall permit the person to
17whom it is issued to engage in the business of selling tangible
18personal property at retail in this State. The certificate of
19registration shall be conspicuously displayed at the place of
20business which the person so registered states in his
21application to be the principal place of business from which he
22engages in the business of selling tangible personal property
23at retail in this State.
24 No certificate of registration issued prior to July 1, 2017
25to a taxpayer who files returns required by this Act on a
26monthly basis or renewed prior to July 1, 2017 by a taxpayer

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1who files returns required by this Act on a monthly basis shall
2be valid after the expiration of 5 years from the date of its
3issuance or last renewal. No certificate of registration issued
4on or after July 1, 2017 to a taxpayer who files returns
5required by this Act on a monthly basis or renewed on or after
6July 1, 2017 by a taxpayer who files returns required by this
7Act on a monthly basis shall be valid after the expiration of
8one year from the date of its issuance or last renewal. The
9expiration date of a sub-certificate of registration shall be
10that of the certificate of registration to which the
11sub-certificate relates. Prior to July 1, 2017, a A certificate
12of registration shall automatically be renewed, subject to
13revocation as provided by this Act, for an additional 5 years
14from the date of its expiration unless otherwise notified by
15the Department as provided by this paragraph. On and after July
161, 2017, a certificate of registration shall automatically be
17renewed, subject to revocation as provided by this Act, for an
18additional one year from the date of its expiration unless
19otherwise notified by the Department as provided by this
20paragraph.
21 Where a taxpayer to whom a certificate of registration is
22issued under this Act is in default to the State of Illinois
23for delinquent returns or for moneys due under this Act or any
24other State tax law or municipal or county ordinance
25administered or enforced by the Department, the Department
26shall, not less than 60 days before the expiration date of such

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1certificate of registration, give notice to the taxpayer to
2whom the certificate was issued of the account period of the
3delinquent returns, the amount of tax, penalty and interest due
4and owing from the taxpayer, and that the certificate of
5registration shall not be automatically renewed upon its
6expiration date unless the taxpayer, on or before the date of
7expiration, has filed and paid the delinquent returns or paid
8the defaulted amount in full. A taxpayer to whom such a notice
9is issued shall be deemed an applicant for renewal. The
10Department shall promulgate regulations establishing
11procedures for taxpayers who file returns on a monthly basis
12but desire and qualify to change to a quarterly or yearly
13filing basis and will no longer be subject to renewal under
14this Section, and for taxpayers who file returns on a yearly or
15quarterly basis but who desire or are required to change to a
16monthly filing basis and will be subject to renewal under this
17Section.
18 The Department may in its discretion approve renewal by an
19applicant who is in default if, at the time of application for
20renewal, the applicant files all of the delinquent returns or
21pays to the Department such percentage of the defaulted amount
22as may be determined by the Department and agrees in writing to
23waive all limitations upon the Department for collection of the
24remaining defaulted amount to the Department over a period not
25to exceed 5 years from the date of renewal of the certificate;
26however, no renewal application submitted by an applicant who

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1is in default shall be approved if the immediately preceding
2renewal by the applicant was conditioned upon the installment
3payment agreement described in this Section. The payment
4agreement herein provided for shall be in addition to and not
5in lieu of the security that may be required by this Section of
6a taxpayer who is no longer considered a prior continuous
7compliance taxpayer. The execution of the payment agreement as
8provided in this Act shall not toll the accrual of interest at
9the statutory rate.
10 The Department may suspend a certificate of registration if
11the Department finds that the person to whom the certificate of
12registration has been issued knowingly sold contraband
13cigarettes.
14 A certificate of registration issued under this Act more
15than 5 years before the effective date of this amendatory Act
16of 1989 shall expire and be subject to the renewal provisions
17of this Section on the next anniversary of the date of issuance
18of such certificate which occurs more than 6 months after the
19effective date of this amendatory Act of 1989. A certificate of
20registration issued less than 5 years before the effective date
21of this amendatory Act of 1989 shall expire and be subject to
22the renewal provisions of this Section on the 5th anniversary
23of the issuance of the certificate.
24 If the person so registered states that he operates other
25places of business from which he engages in the business of
26selling tangible personal property at retail in this State, the

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1Department shall furnish him with a sub-certificate of
2registration for each such place of business, and the applicant
3shall display the appropriate sub-certificate of registration
4at each such place of business. All sub-certificates of
5registration shall bear the same registration number as that
6appearing upon the certificate of registration to which such
7sub-certificates relate.
8 If the applicant will sell tangible personal property at
9retail through vending machines, the Department shall furnish
10him with a sub-certificate of registration for each such
11vending machine, and the applicant shall display the
12appropriate sub-certificate of registration on each such
13vending machine by attaching the sub-certificate of
14registration to a conspicuous part of such vending machine. If
15a person who is registered to sell tangible personal property
16at retail through vending machines adds an additional vending
17machine or additional vending machines to the number of vending
18machines he or she uses in his or her business of selling
19tangible personal property at retail, he or she shall notify
20the Department, on a form prescribed by the Department, to
21request an additional sub-certificate or additional
22sub-certificates of registration, as applicable. With each
23such request, the applicant shall report the number of
24sub-certificates of registration he or she is requesting as
25well as the total number of vending machines from which he or
26she makes retail sales.

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1 Where the same person engages in 2 or more businesses of
2selling tangible personal property at retail in this State,
3which businesses are substantially different in character or
4engaged in under different trade names or engaged in under
5other substantially dissimilar circumstances (so that it is
6more practicable, from an accounting, auditing or bookkeeping
7standpoint, for such businesses to be separately registered),
8the Department may require or permit such person (subject to
9the same requirements concerning the furnishing of security as
10those that are provided for hereinbefore in this Section as to
11each application for a certificate of registration) to apply
12for and obtain a separate certificate of registration for each
13such business or for any of such businesses, under a single
14certificate of registration supplemented by related
15sub-certificates of registration.
16 Any person who is registered under the "Retailers'
17Occupation Tax Act" as of March 8, 1963, and who, during the
183-year period immediately prior to March 8, 1963, or during a
19continuous 3-year period part of which passed immediately
20before and the remainder of which passes immediately after
21March 8, 1963, has been so registered continuously and who is
22determined by the Department not to have been either delinquent
23or deficient in the payment of tax liability during that period
24under this Act or under any other State tax law or municipal or
25county tax ordinance or resolution under which the certificate
26of registration that is issued to the registrant under this Act

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1will permit the registrant to engage in business without
2registering separately under such other law, ordinance or
3resolution, shall be considered to be a Prior Continuous
4Compliance taxpayer. Also any taxpayer who has, as verified by
5the Department, faithfully and continuously complied with the
6condition of his bond or other security under the provisions of
7this Act for a period of 3 consecutive years shall be
8considered to be a Prior Continuous Compliance taxpayer.
9 Every Prior Continuous Compliance taxpayer shall be exempt
10from all requirements under this Act concerning the furnishing
11of a bond or other security as a condition precedent to his
12being authorized to engage in the business of selling tangible
13personal property at retail in this State. This exemption shall
14continue for each such taxpayer until such time as he may be
15determined by the Department to be delinquent in the filing of
16any returns, or is determined by the Department (either through
17the Department's issuance of a final assessment which has
18become final under the Act, or by the taxpayer's filing of a
19return which admits tax that is not paid to be due) to be
20delinquent or deficient in the paying of any tax under this Act
21or under any other State tax law or municipal or county tax
22ordinance or resolution under which the certificate of
23registration that is issued to the registrant under this Act
24will permit the registrant to engage in business without
25registering separately under such other law, ordinance or
26resolution, at which time that taxpayer shall become subject to

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1all the financial responsibility requirements of this Act and,
2as a condition of being allowed to continue to engage in the
3business of selling tangible personal property at retail, may
4be required to post bond or other acceptable security with the
5Department covering liability which such taxpayer may
6thereafter incur. Any taxpayer who fails to pay an admitted or
7established liability under this Act may also be required to
8post bond or other acceptable security with this Department
9guaranteeing the payment of such admitted or established
10liability.
11 No certificate of registration shall be issued to any
12person who is in default to the State of Illinois for moneys
13due under this Act or under any other State tax law or
14municipal or county tax ordinance or resolution under which the
15certificate of registration that is issued to the applicant
16under this Act will permit the applicant to engage in business
17without registering separately under such other law, ordinance
18or resolution.
19 Any person aggrieved by any decision of the Department
20under this Section may, within 20 days after notice of such
21decision, protest and request a hearing, whereupon the
22Department shall give notice to such person of the time and
23place fixed for such hearing and shall hold a hearing in
24conformity with the provisions of this Act and then issue its
25final administrative decision in the matter to such person. In
26the absence of such a protest within 20 days, the Department's

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1decision shall become final without any further determination
2being made or notice given.
3 With respect to security other than bonds (upon which the
4Department may sue in the event of a forfeiture), if the
5taxpayer fails to pay, when due, any amount whose payment such
6security guarantees, the Department shall, after such
7liability is admitted by the taxpayer or established by the
8Department through the issuance of a final assessment that has
9become final under the law, convert the security which that
10taxpayer has furnished into money for the State, after first
11giving the taxpayer at least 10 days' written notice, by
12registered or certified mail, to pay the liability or forfeit
13such security to the Department. If the security consists of
14stocks or bonds or other securities which are listed on a
15public exchange, the Department shall sell such securities
16through such public exchange. If the security consists of an
17irrevocable bank letter of credit, the Department shall convert
18the security in the manner provided for in the Uniform
19Commercial Code. If the security consists of a bank certificate
20of deposit, the Department shall convert the security into
21money by demanding and collecting the amount of such bank
22certificate of deposit from the bank which issued such
23certificate. If the security consists of a type of stocks or
24other securities which are not listed on a public exchange, the
25Department shall sell such security to the highest and best
26bidder after giving at least 10 days' notice of the date, time

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1and place of the intended sale by publication in the "State
2Official Newspaper". If the Department realizes more than the
3amount of such liability from the security, plus the expenses
4incurred by the Department in converting the security into
5money, the Department shall pay such excess to the taxpayer who
6furnished such security, and the balance shall be paid into the
7State Treasury.
8 The Department shall discharge any surety and shall release
9and return any security deposited, assigned, pledged or
10otherwise provided to it by a taxpayer under this Section
11within 30 days after:
12 (1) such taxpayer becomes a Prior Continuous
13 Compliance taxpayer; or
14 (2) such taxpayer has ceased to collect receipts on
15 which he is required to remit tax to the Department, has
16 filed a final tax return, and has paid to the Department an
17 amount sufficient to discharge his remaining tax
18 liability, as determined by the Department, under this Act
19 and under every other State tax law or municipal or county
20 tax ordinance or resolution under which the certificate of
21 registration issued under this Act permits the registrant
22 to engage in business without registering separately under
23 such other law, ordinance or resolution. The Department
24 shall make a final determination of the taxpayer's
25 outstanding tax liability as expeditiously as possible
26 after his final tax return has been filed; if the

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1 Department cannot make such final determination within 45
2 days after receiving the final tax return, within such
3 period it shall so notify the taxpayer, stating its reasons
4 therefor.
5(Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583,
6eff. 1-1-14; 98-756, eff. 7-16-14; 98-974, eff. 1-1-15.)
7 Section 99. Effective date. This Act takes effect upon
8becoming law.
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