Bill Text: IL HB2485 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. In a provision requiring certain licensees to file a bond with the Department of Revenue, provides an exception for a manufacturer or importing distributor who is applying for a manufacturer's or importing distributor's license for the first time. Provides that the bond may be required as a condition to renew a license for subsequent annual license terms if a manufacturer or importing distributor exceeds $50,000 in tax liability. Provides that the Illinois Liquor Control Commission shall not renew a license for any applicant for a manufacturer's or importing distributor's license if the State Commission has received a notification from the Department showing that the applicant is required to file and has not filed a satisfactory bond with the Department and that the bond has not been approved by the Department. Removes language providing that the State Commission shall not issue a license to any applicant for a manufacturer's or importing distributor's license unless the Commission has received a notification from the Department showing that such applicant has filed a satisfactory bond with the Department and that such bond has been approved by the Department.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-03-21 - Rule 19(a) / Re-referred to Rules Committee [HB2485 Detail]

Download: Illinois-2025-HB2485-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2485 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
235 ILCS 5/8-2 from Ch. 43, par. 159
Amends the Liquor Control Act of 1934. In a provision requiring certain licensees to file a bond with the Department of Revenue, provides an exception for a manufacturer or importing distributor who is applying for a manufacturer's or importing distributor's license for the first time. Provides that the bond may be required as a condition to renew a license for subsequent annual license terms if a manufacturer or importing distributor exceeds $50,000 in tax liability. Provides that the Illinois Liquor Control Commission shall not renew a license for any applicant for a manufacturer's or importing distributor's license if the State Commission has received a notification from the Department showing that the applicant is required to file and has not filed a satisfactory bond with the Department and that the bond has not been approved by the Department. Removes language providing that the State Commission shall not issue a license to any applicant for a manufacturer's or importing distributor's license unless the Commission has received a notification from the Department showing that such applicant has filed a satisfactory bond with the Department and that such bond has been approved by the Department.
LRB104 10427 RPS 20502 b
A BILL FOR
HB2485 LRB104 10427 RPS 20502 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Section 8-2 as follows:
(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. Payments; reports. It is the duty of each
manufacturer with respect to alcoholic liquor produced or
imported by such manufacturer, or purchased tax-free by such
manufacturer from another manufacturer or importing
distributor, and of each importing distributor as to alcoholic
liquor purchased by such importing distributor from foreign
importers or from anyone from any point in the United States
outside of this State or purchased tax-free from another
manufacturer or importing distributor, to pay the tax imposed
by Section 8-1 to the Department of Revenue on or before the
15th day of the calendar month following the calendar month in
which such alcoholic liquor is sold or used by such
manufacturer or by such importing distributor other than in an
authorized tax-free manner or to pay that tax electronically
as provided in this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1) on or

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before the 15th day of each calendar month, file in person or
by United States first-class mail, postage pre-paid, with the
Department of Revenue, on forms prescribed and furnished by
the Department, a report in writing in such form as may be
required by the Department in order to compute, and assure the
accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month. Payment
of the tax in the amount disclosed by the report shall
accompany the report or, (2) on or before the 15th day of each
calendar month, electronically file with the Department of
Revenue, on forms prescribed and furnished by the Department,
an electronic report in such form as may be required by the
Department in order to compute, and assure the accuracy of,
the tax due on all taxable sales and uses of alcoholic liquor
occurring during the preceding month. An electronic payment of
the tax in the amount disclosed by the report shall accompany
the report. A manufacturer or distributor who files an
electronic report and electronically pays the tax imposed
pursuant to Section 8-1 to the Department of Revenue on or
before the 15th day of the calendar month following the
calendar month in which such alcoholic liquor is sold or used
by that manufacturer or importing distributor other than in an
authorized tax-free manner shall pay to the Department the
amount of the tax imposed pursuant to Section 8-1, less a
discount which is allowed to reimburse the manufacturer or
importing distributor for the expenses incurred in keeping and

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maintaining records, preparing and filing the electronic
returns, remitting the tax, and supplying data to the
Department upon request.
The discount shall be in an amount as follows:
(1) For original returns due on or after January 1,
2003 through September 30, 2003, the discount shall be
1.75% or $1,250 per return, whichever is less;
(2) For original returns due on or after October 1,
2003 through September 30, 2004, the discount shall be 2%
or $3,000 per return, whichever is less; and
(3) For original returns due on or after October 1,
2004, the discount shall be 2% or $2,000 per return,
whichever is less.
The Department may, if it deems it necessary in order to
insure the payment of the tax imposed by this Article, require
returns to be made more frequently than and covering periods
of less than a month. Such return shall contain such further
information as the Department may reasonably require.
It shall be presumed that all alcoholic liquors acquired
or made by any importing distributor or manufacturer have been
sold or used by him in this State and are the basis for the tax
imposed by this Article unless proven, to the satisfaction of
the Department, that such alcoholic liquors are (1) still in
the possession of such importing distributor or manufacturer,
or (2) prior to the termination of possession have been lost by
theft or through unintentional destruction, or (3) that such

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alcoholic liquors are otherwise exempt from taxation under
this Act.
If any payment provided for in this Section exceeds the
manufacturer's or importing distributor's liabilities under
this Act, as shown on an original report, the manufacturer or
importing distributor may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
manufacturer or importing distributor, the manufacturer's or
importing distributor's discount shall be reduced by an amount
equal to the difference between the discount as applied to the
credit taken and that actually due, and the manufacturer or
importing distributor shall be liable for penalties and
interest on such difference.
The Department may require any foreign importer to file
monthly information returns, by the 15th day of the month
following the month which any such return covers, if the
Department determines this to be necessary to the proper
performance of the Department's functions and duties under
this Act. Such return shall contain such information as the
Department may reasonably require.
Every manufacturer and importing distributor, except for a
manufacturer or importing distributor who is applying for a
manufacturer's or importing distributor's license under this

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Act for the first time or a manufacturer or importing
distributor who that in the preceding year had less than
$50,000 of tax liability under this Article, shall also file,
with the Department, a bond in an amount not less than $1,000
and not to exceed $100,000 on a form to be approved by, and
with a surety or sureties satisfactory to, the Department.
Such bond may be required as a condition to renew a license for
subsequent annual license terms if a manufacturer or importing
distributor exceeds $50,000 in tax liability. Such bond shall
be conditioned upon the manufacturer or importing distributor
paying to the Department all monies becoming due from such
manufacturer or importing distributor under this Article. The
Department shall fix the penalty of such bond in each case,
taking into consideration the amount of alcoholic liquor
expected to be sold and used by such manufacturer or importing
distributor, and the penalty fixed by the Department shall be
sufficient, in the Department's opinion, to protect the State
of Illinois against failure to pay any amount due under this
Article, but the amount of the penalty fixed by the Department
shall not exceed twice the amount of tax liability of a monthly
return, nor shall the amount of such penalty be less than
$1,000. The Department shall notify the State Commission of
the Department's approval or disapproval of any such
manufacturer's or importing distributor's bond, or of the
termination or cancellation of any such bond, or of the
Department's direction to a manufacturer or importing

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distributor that he must file additional bond in order to
comply with this Section. The Commission shall not renew issue
a license for to any applicant for a manufacturer's or
importing distributor's license if unless the Commission has
received a notification from the Department showing that such
applicant is required to file and has not filed a satisfactory
bond with the Department hereunder and that such bond has not
been approved by the Department. Failure by any licensed
manufacturer or importing distributor to keep a satisfactory
bond in effect with the Department or to furnish additional
bond to the Department, when required hereunder by the
Department to do so, shall be grounds for the revocation or
suspension of such manufacturer's or importing distributor's
license by the Commission. If a manufacturer or importing
distributor fails to pay any amount due under this Article,
his bond with the Department shall be deemed forfeited, and
the Department may institute a suit in its own name on such
bond.
After notice and opportunity for a hearing the State
Commission may revoke or suspend the license of any
manufacturer or importing distributor who fails to comply with
the provisions of this Section. Notice of such hearing and the
time and place thereof shall be in writing and shall contain a
statement of the charges against the licensee. Such notice may
be given by United States registered or certified mail with
return receipt requested, addressed to the person concerned at

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his last known address and shall be given not less than 7 days
prior to the date fixed for the hearing. An order revoking or
suspending a license under the provisions of this Section may
be reviewed in the manner provided in Section 7-10 of this Act.
No new license shall be granted to a person whose license has
been revoked for a violation of this Section or, in case of
suspension, shall such suspension be terminated until he has
paid to the Department all taxes and penalties which he owes
the State under the provisions of this Act.
Every manufacturer or importing distributor who has, as
verified by the Department, continuously complied with the
conditions of the bond under this Act for a period of 2 years
shall be considered to be a prior continuous compliance
taxpayer. In determining the consecutive period of time for
qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory Act
of 1987 shall be credited to any manufacturer or importing
distributor.
A manufacturer or importing distributor that is a prior
continuous compliance taxpayer under this Section and becomes
a successor as the result of an acquisition, merger, or
consolidation of a manufacturer or importing distributor shall
be deemed to be a prior continuous compliance taxpayer with
respect to the acquired, merged, or consolidated entity.
Every prior continuous compliance taxpayer shall be exempt

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from the bond requirements of this Act until the Department
has determined the taxpayer to be delinquent in the filing of
any return or deficient in the payment of any tax under this
Act. Any taxpayer who fails to pay an admitted or established
liability under this Act may also be required to post bond or
other acceptable security with the Department guaranteeing the
payment of such admitted or established liability.
The Department shall discharge any surety and shall
release and return any bond or security deposit assigned,
pledged or otherwise provided to it by a taxpayer under this
Section within 30 days after: (1) such taxpayer becomes a
prior continuous compliance taxpayer; or (2) such taxpayer has
ceased to collect receipts on which he is required to remit tax
to the Department, has filed a final tax return, and has paid
to the Department an amount sufficient to discharge his
remaining tax liability as determined by the Department under
this Act.
(Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)