Bill Text: IL HB2479 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Retailers' Occupation Tax Act. In provisions concerning certificates of registration, removes a requirement that publicly traded corporations must provide the last 4 digits of the social security numbers of their Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns.

Spectrum: Bipartisan Bill

Status: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [HB2479 Detail]

Download: Illinois-2017-HB2479-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2479

Introduced , by Rep. Ann M. Williams

SYNOPSIS AS INTRODUCED:
35 ILCS 120/2a from Ch. 120, par. 441a

Amends the Retailers' Occupation Tax Act. In provisions concerning certificates of registration, removes a requirement that publicly traded corporations must provide the last 4 digits of the social security numbers of their Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns.
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A BILL FOR

HB2479LRB100 05644 HLH 15658 b
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 to a taxpayer who
25files returns required by this Act on a monthly basis shall be
26valid after the expiration of 5 years from the date of its

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1issuance or last renewal. The expiration date of a
2sub-certificate of registration shall be that of the
3certificate of registration to which the sub-certificate
4relates. A certificate of registration shall automatically be
5renewed, subject to revocation as provided by this Act, for an
6additional 5 years from the date of its expiration unless
7otherwise notified by the Department as provided by this
8paragraph. Where a taxpayer to whom a certificate of
9registration is issued under this Act is in default to the
10State of Illinois for delinquent returns or for moneys due
11under this Act or any other State tax law or municipal or
12county ordinance administered or enforced by the Department,
13the Department shall, not less than 60 days before the
14expiration date of such certificate of registration, give
15notice to the taxpayer to whom the certificate was issued of
16the account period of the delinquent returns, the amount of
17tax, penalty and interest due and owing from the taxpayer, and
18that the certificate of registration shall not be automatically
19renewed upon its expiration date unless the taxpayer, on or
20before the date of expiration, has filed and paid the
21delinquent returns or paid the defaulted amount in full. A
22taxpayer to whom such a notice is issued shall be deemed an
23applicant for renewal. The Department shall promulgate
24regulations establishing procedures for taxpayers who file
25returns on a monthly basis but desire and qualify to change to
26a quarterly or yearly filing basis and will no longer be

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1subject to renewal under this Section, and for taxpayers who
2file returns on a yearly or quarterly basis but who desire or
3are required to change to a monthly filing basis and will be
4subject to renewal under this Section.
5 The Department may in its discretion approve renewal by an
6applicant who is in default if, at the time of application for
7renewal, the applicant files all of the delinquent returns or
8pays to the Department such percentage of the defaulted amount
9as may be determined by the Department and agrees in writing to
10waive all limitations upon the Department for collection of the
11remaining defaulted amount to the Department over a period not
12to exceed 5 years from the date of renewal of the certificate;
13however, no renewal application submitted by an applicant who
14is in default shall be approved if the immediately preceding
15renewal by the applicant was conditioned upon the installment
16payment agreement described in this Section. The payment
17agreement herein provided for shall be in addition to and not
18in lieu of the security that may be required by this Section of
19a taxpayer who is no longer considered a prior continuous
20compliance taxpayer. The execution of the payment agreement as
21provided in this Act shall not toll the accrual of interest at
22the statutory rate.
23 The Department may suspend a certificate of registration if
24the Department finds that the person to whom the certificate of
25registration has been issued knowingly sold contraband
26cigarettes.

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1 A certificate of registration issued under this Act more
2than 5 years before the effective date of this amendatory Act
3of 1989 shall expire and be subject to the renewal provisions
4of this Section on the next anniversary of the date of issuance
5of such certificate which occurs more than 6 months after the
6effective date of this amendatory Act of 1989. A certificate of
7registration issued less than 5 years before the effective date
8of this amendatory Act of 1989 shall expire and be subject to
9the renewal provisions of this Section on the 5th anniversary
10of the issuance of the certificate.
11 If the person so registered states that he operates other
12places of business from which he engages in the business of
13selling tangible personal property at retail in this State, the
14Department shall furnish him with a sub-certificate of
15registration for each such place of business, and the applicant
16shall display the appropriate sub-certificate of registration
17at each such place of business. All sub-certificates of
18registration shall bear the same registration number as that
19appearing upon the certificate of registration to which such
20sub-certificates relate.
21 If the applicant will sell tangible personal property at
22retail through vending machines, the Department shall furnish
23him with a sub-certificate of registration for each such
24vending machine, and the applicant shall display the
25appropriate sub-certificate of registration on each such
26vending machine by attaching the sub-certificate of

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1registration to a conspicuous part of such vending machine. If
2a person who is registered to sell tangible personal property
3at retail through vending machines adds an additional vending
4machine or additional vending machines to the number of vending
5machines he or she uses in his or her business of selling
6tangible personal property at retail, he or she shall notify
7the Department, on a form prescribed by the Department, to
8request an additional sub-certificate or additional
9sub-certificates of registration, as applicable. With each
10such request, the applicant shall report the number of
11sub-certificates of registration he or she is requesting as
12well as the total number of vending machines from which he or
13she makes retail sales.
14 Where the same person engages in 2 or more businesses of
15selling tangible personal property at retail in this State,
16which businesses are substantially different in character or
17engaged in under different trade names or engaged in under
18other substantially dissimilar circumstances (so that it is
19more practicable, from an accounting, auditing or bookkeeping
20standpoint, for such businesses to be separately registered),
21the Department may require or permit such person (subject to
22the same requirements concerning the furnishing of security as
23those that are provided for hereinbefore in this Section as to
24each application for a certificate of registration) to apply
25for and obtain a separate certificate of registration for each
26such business or for any of such businesses, under a single

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1certificate of registration supplemented by related
2sub-certificates of registration.
3 Any person who is registered under the "Retailers'
4Occupation Tax Act" as of March 8, 1963, and who, during the
53-year period immediately prior to March 8, 1963, or during a
6continuous 3-year period part of which passed immediately
7before and the remainder of which passes immediately after
8March 8, 1963, has been so registered continuously and who is
9determined by the Department not to have been either delinquent
10or deficient in the payment of tax liability during that period
11under this Act or under any other State tax law or municipal or
12county tax ordinance or resolution under which the certificate
13of registration that is issued to the registrant under this Act
14will permit the registrant to engage in business without
15registering separately under such other law, ordinance or
16resolution, shall be considered to be a Prior Continuous
17Compliance taxpayer. Also any taxpayer who has, as verified by
18the Department, faithfully and continuously complied with the
19condition of his bond or other security under the provisions of
20this Act for a period of 3 consecutive years shall be
21considered to be a Prior Continuous Compliance taxpayer.
22 Every Prior Continuous Compliance taxpayer shall be exempt
23from all requirements under this Act concerning the furnishing
24of a bond or other security as a condition precedent to his
25being authorized to engage in the business of selling tangible
26personal property at retail in this State. This exemption shall

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1continue for each such taxpayer until such time as he may be
2determined by the Department to be delinquent in the filing of
3any returns, or is determined by the Department (either through
4the Department's issuance of a final assessment which has
5become final under the Act, or by the taxpayer's filing of a
6return which admits tax that is not paid to be due) to be
7delinquent or deficient in the paying of any tax under this Act
8or under any other State tax law or municipal or county tax
9ordinance or resolution under which the certificate of
10registration that is issued to the registrant under this Act
11will permit the registrant to engage in business without
12registering separately under such other law, ordinance or
13resolution, at which time that taxpayer shall become subject to
14all the financial responsibility requirements of this Act and,
15as a condition of being allowed to continue to engage in the
16business of selling tangible personal property at retail, may
17be required to post bond or other acceptable security with the
18Department covering liability which such taxpayer may
19thereafter incur. Any taxpayer who fails to pay an admitted or
20established liability under this Act may also be required to
21post bond or other acceptable security with this Department
22guaranteeing the payment of such admitted or established
23liability.
24 No certificate of registration shall be issued to any
25person who is in default to the State of Illinois for moneys
26due under this Act or under any other State tax law or

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1municipal or county tax ordinance or resolution under which the
2certificate of registration that is issued to the applicant
3under this Act will permit the applicant to engage in business
4without registering separately under such other law, ordinance
5or resolution.
6 Any person aggrieved by any decision of the Department
7under this Section may, within 20 days after notice of such
8decision, protest and request a hearing, whereupon the
9Department shall give notice to such person of the time and
10place fixed for such hearing and shall hold a hearing in
11conformity with the provisions of this Act and then issue its
12final administrative decision in the matter to such person. In
13the absence of such a protest within 20 days, the Department's
14decision shall become final without any further determination
15being made or notice given.
16 With respect to security other than bonds (upon which the
17Department may sue in the event of a forfeiture), if the
18taxpayer fails to pay, when due, any amount whose payment such
19security guarantees, the Department shall, after such
20liability is admitted by the taxpayer or established by the
21Department through the issuance of a final assessment that has
22become final under the law, convert the security which that
23taxpayer has furnished into money for the State, after first
24giving the taxpayer at least 10 days' written notice, by
25registered or certified mail, to pay the liability or forfeit
26such security to the Department. If the security consists of

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1stocks or bonds or other securities which are listed on a
2public exchange, the Department shall sell such securities
3through such public exchange. If the security consists of an
4irrevocable bank letter of credit, the Department shall convert
5the security in the manner provided for in the Uniform
6Commercial Code. If the security consists of a bank certificate
7of deposit, the Department shall convert the security into
8money by demanding and collecting the amount of such bank
9certificate of deposit from the bank which issued such
10certificate. If the security consists of a type of stocks or
11other securities which are not listed on a public exchange, the
12Department shall sell such security to the highest and best
13bidder after giving at least 10 days' notice of the date, time
14and place of the intended sale by publication in the "State
15Official Newspaper". If the Department realizes more than the
16amount of such liability from the security, plus the expenses
17incurred by the Department in converting the security into
18money, the Department shall pay such excess to the taxpayer who
19furnished such security, and the balance shall be paid into the
20State Treasury.
21 The Department shall discharge any surety and shall release
22and return any security deposited, assigned, pledged or
23otherwise provided to it by a taxpayer under this Section
24within 30 days after:
25 (1) such taxpayer becomes a Prior Continuous
26 Compliance taxpayer; or

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1 (2) such taxpayer has ceased to collect receipts on
2 which he is required to remit tax to the Department, has
3 filed a final tax return, and has paid to the Department an
4 amount sufficient to discharge his remaining tax
5 liability, as determined by the Department, under this Act
6 and under every other State tax law or municipal or county
7 tax ordinance or resolution under which the certificate of
8 registration issued under this Act permits the registrant
9 to engage in business without registering separately under
10 such other law, ordinance or resolution. The Department
11 shall make a final determination of the taxpayer's
12 outstanding tax liability as expeditiously as possible
13 after his final tax return has been filed; if the
14 Department cannot make such final determination within 45
15 days after receiving the final tax return, within such
16 period it shall so notify the taxpayer, stating its reasons
17 therefor.
18(Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583,
19eff. 1-1-14; 98-756, eff. 7-16-14; 98-974, eff. 1-1-15.)
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