Bill Text: IL HB4004 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides for water's edge combined reporting. Creates an addition modification in an amount equal to the deduction for qualified production activities allowed under Section 199 of the Internal Revenue Code. In the definition of "unitary business group", provides that the term "United States" means the 50 states, the District of Columbia, and any area over which the United States has asserted jurisdiction or claimed exclusive rights with respect to the exploration for or exploitation of natural resources, but does not include any territory or possession of the United States (currently, that definition does not include any territory or possession of the United States or any area over which the United States has asserted jurisdiction or claimed exclusive rights with respect to the exploration for or exploitation of natural resources). In that definition, further provides that the unitary business group may include members that are ordinarily required to apportion business income under different subsections of the Act. Provides that provisions related to the apportionment of income for federally regulated exchanges expire on December 31, 2017. Amends the Hotel Operators' Occupation Tax Act. Provides that the Act also applies to online travel companies. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, the Hotel Operators' Occupation Tax Act, the Motor Fuel Tax Law, the Telecommunications Excise Tax Act, and the Liquor Control Act of 1934 to provide for reductions in the vendor discount. Effective immediately.
Spectrum: Partisan Bill (Democrat 26-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB4004 Detail]
Download: Illinois-2017-HB4004-Introduced.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,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Sections 203, 304, and 1501 and by adding Section 309 | ||||||||||||||||||||||||
6 | as follows:
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7 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||||||||||||||||||||
8 | Sec. 203. Base income defined. | ||||||||||||||||||||||||
9 | (a) Individuals. | ||||||||||||||||||||||||
10 | (1) In general. In the case of an individual, base | ||||||||||||||||||||||||
11 | income means an
amount equal to the taxpayer's adjusted | ||||||||||||||||||||||||
12 | gross income for the taxable
year as modified by paragraph | ||||||||||||||||||||||||
13 | (2). | ||||||||||||||||||||||||
14 | (2) Modifications. The adjusted gross income referred | ||||||||||||||||||||||||
15 | to in
paragraph (1) shall be modified by adding thereto the | ||||||||||||||||||||||||
16 | sum of the
following amounts: | ||||||||||||||||||||||||
17 | (A) An amount equal to all amounts paid or accrued | ||||||||||||||||||||||||
18 | to the taxpayer
as interest or dividends during the | ||||||||||||||||||||||||
19 | taxable year to the extent excluded
from gross income | ||||||||||||||||||||||||
20 | in the computation of adjusted gross income, except | ||||||||||||||||||||||||
21 | stock
dividends of qualified public utilities | ||||||||||||||||||||||||
22 | described in Section 305(e) of the
Internal Revenue | ||||||||||||||||||||||||
23 | Code; |
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1 | (B) An amount equal to the amount of tax imposed by | ||||||
2 | this Act to the
extent deducted from gross income in | ||||||
3 | the computation of adjusted gross
income for the | ||||||
4 | taxable year; | ||||||
5 | (C) An amount equal to the amount received during | ||||||
6 | the taxable year
as a recovery or refund of real | ||||||
7 | property taxes paid with respect to the
taxpayer's | ||||||
8 | principal residence under the Revenue Act of
1939 and | ||||||
9 | for which a deduction was previously taken under | ||||||
10 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
11 | 1991, the retrospective application date of
Article 4 | ||||||
12 | of Public Act 87-17. In the case of multi-unit or | ||||||
13 | multi-use
structures and farm dwellings, the taxes on | ||||||
14 | the taxpayer's principal residence
shall be that | ||||||
15 | portion of the total taxes for the entire property | ||||||
16 | which is
attributable to such principal residence; | ||||||
17 | (D) An amount equal to the amount of the capital | ||||||
18 | gain deduction
allowable under the Internal Revenue | ||||||
19 | Code, to the extent deducted from gross
income in the | ||||||
20 | computation of adjusted gross income; | ||||||
21 | (D-5) An amount, to the extent not included in | ||||||
22 | adjusted gross income,
equal to the amount of money | ||||||
23 | withdrawn by the taxpayer in the taxable year from
a | ||||||
24 | medical care savings account and the interest earned on | ||||||
25 | the account in the
taxable year of a withdrawal | ||||||
26 | pursuant to subsection (b) of Section 20 of the
Medical |
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1 | Care Savings Account Act or subsection (b) of Section | ||||||
2 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
3 | (D-10) For taxable years ending after December 31, | ||||||
4 | 1997, an
amount equal to any eligible remediation costs | ||||||
5 | that the individual
deducted in computing adjusted | ||||||
6 | gross income and for which the
individual claims a | ||||||
7 | credit under subsection (l) of Section 201; | ||||||
8 | (D-15) For taxable years 2001 and thereafter, an | ||||||
9 | amount equal to the
bonus depreciation deduction taken | ||||||
10 | on the taxpayer's federal income tax return for the | ||||||
11 | taxable
year under subsection (k) of Section 168 of the | ||||||
12 | Internal Revenue Code; | ||||||
13 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
14 | or otherwise disposes of property for which the | ||||||
15 | taxpayer was required in any taxable year to
make an | ||||||
16 | addition modification under subparagraph (D-15), then | ||||||
17 | an amount equal
to the aggregate amount of the | ||||||
18 | deductions taken in all taxable
years under | ||||||
19 | subparagraph (Z) with respect to that property. | ||||||
20 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which the | ||||||
22 | taxpayer may claim a depreciation deduction for | ||||||
23 | federal income tax purposes and for which the taxpayer | ||||||
24 | was allowed in any taxable year to make a subtraction | ||||||
25 | modification under subparagraph (Z), then an amount | ||||||
26 | equal to that subtraction modification.
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1 | The taxpayer is required to make the addition | ||||||
2 | modification under this
subparagraph
only once with | ||||||
3 | respect to any one piece of property; | ||||||
4 | (D-17) An amount equal to the amount otherwise | ||||||
5 | allowed as a deduction in computing base income for | ||||||
6 | interest paid, accrued, or incurred, directly or | ||||||
7 | indirectly, (i) for taxable years ending on or after | ||||||
8 | December 31, 2004, to a foreign person who would be a | ||||||
9 | member of the same unitary business group but for the | ||||||
10 | fact that foreign person's business activity outside | ||||||
11 | the United States is 80% or more of the foreign | ||||||
12 | person's total business activity and (ii) for taxable | ||||||
13 | years ending on or after December 31, 2008, to a person | ||||||
14 | who would be a member of the same unitary business | ||||||
15 | group but for the fact that the person is prohibited | ||||||
16 | under Section 1501(a)(27) from being included in the | ||||||
17 | unitary business group because he or she is ordinarily | ||||||
18 | required to apportion business income under different | ||||||
19 | subsections of Section 304. The addition modification | ||||||
20 | required by this subparagraph shall be reduced to the | ||||||
21 | extent that dividends were included in base income of | ||||||
22 | the unitary group for the same taxable year and | ||||||
23 | received by the taxpayer or by a member of the | ||||||
24 | taxpayer's unitary business group (including amounts | ||||||
25 | included in gross income under Sections 951 through 964 | ||||||
26 | of the Internal Revenue Code and amounts included in |
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1 | gross income under Section 78 of the Internal Revenue | ||||||
2 | Code) with respect to the stock of the same person to | ||||||
3 | whom the interest was paid, accrued, or incurred. | ||||||
4 | This paragraph shall not apply to the following:
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5 | (i) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person who | ||||||
7 | is subject in a foreign country or state, other | ||||||
8 | than a state which requires mandatory unitary | ||||||
9 | reporting, to a tax on or measured by net income | ||||||
10 | with respect to such interest; or | ||||||
11 | (ii) an item of interest paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to a person if | ||||||
13 | the taxpayer can establish, based on a | ||||||
14 | preponderance of the evidence, both of the | ||||||
15 | following: | ||||||
16 | (a) the person, during the same taxable | ||||||
17 | year, paid, accrued, or incurred, the interest | ||||||
18 | to a person that is not a related member, and | ||||||
19 | (b) the transaction giving rise to the | ||||||
20 | interest expense between the taxpayer and the | ||||||
21 | person did not have as a principal purpose the | ||||||
22 | avoidance of Illinois income tax, and is paid | ||||||
23 | pursuant to a contract or agreement that | ||||||
24 | reflects an arm's-length interest rate and | ||||||
25 | terms; or
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26 | (iii) the taxpayer can establish, based on |
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1 | clear and convincing evidence, that the interest | ||||||
2 | paid, accrued, or incurred relates to a contract or | ||||||
3 | agreement entered into at arm's-length rates and | ||||||
4 | terms and the principal purpose for the payment is | ||||||
5 | not federal or Illinois tax avoidance; or
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6 | (iv) an item of interest paid, accrued, or | ||||||
7 | incurred, directly or indirectly, to a person if | ||||||
8 | the taxpayer establishes by clear and convincing | ||||||
9 | evidence that the adjustments are unreasonable; or | ||||||
10 | if the taxpayer and the Director agree in writing | ||||||
11 | to the application or use of an alternative method | ||||||
12 | of apportionment under Section 304(f).
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13 | Nothing in this subsection shall preclude the | ||||||
14 | Director from making any other adjustment | ||||||
15 | otherwise allowed under Section 404 of this Act for | ||||||
16 | any tax year beginning after the effective date of | ||||||
17 | this amendment provided such adjustment is made | ||||||
18 | pursuant to regulation adopted by the Department | ||||||
19 | and such regulations provide methods and standards | ||||||
20 | by which the Department will utilize its authority | ||||||
21 | under Section 404 of this Act;
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22 | (D-18) An amount equal to the amount of intangible | ||||||
23 | expenses and costs otherwise allowed as a deduction in | ||||||
24 | computing base income, and that were paid, accrued, or | ||||||
25 | incurred, directly or indirectly, (i) for taxable | ||||||
26 | years ending on or after December 31, 2004, to a |
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1 | foreign person who would be a member of the same | ||||||
2 | unitary business group but for the fact that the | ||||||
3 | foreign person's business activity outside the United | ||||||
4 | States is 80% or more of that person's total business | ||||||
5 | activity and (ii) for taxable years ending on or after | ||||||
6 | December 31, 2008, to a person who would be a member of | ||||||
7 | the same unitary business group but for the fact that | ||||||
8 | the person is prohibited under Section 1501(a)(27) | ||||||
9 | from being included in the unitary business group | ||||||
10 | because he or she is ordinarily required to apportion | ||||||
11 | business income under different subsections of Section | ||||||
12 | 304. The addition modification required by this | ||||||
13 | subparagraph shall be reduced to the extent that | ||||||
14 | dividends were included in base income of the unitary | ||||||
15 | group for the same taxable year and received by the | ||||||
16 | taxpayer or by a member of the taxpayer's unitary | ||||||
17 | business group (including amounts included in gross | ||||||
18 | income under Sections 951 through 964 of the Internal | ||||||
19 | Revenue Code and amounts included in gross income under | ||||||
20 | Section 78 of the Internal Revenue Code) with respect | ||||||
21 | to the stock of the same person to whom the intangible | ||||||
22 | expenses and costs were directly or indirectly paid, | ||||||
23 | incurred, or accrued. The preceding sentence does not | ||||||
24 | apply to the extent that the same dividends caused a | ||||||
25 | reduction to the addition modification required under | ||||||
26 | Section 203(a)(2)(D-17) of this Act. As used in this |
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1 | subparagraph, the term "intangible expenses and costs" | ||||||
2 | includes (1) expenses, losses, and costs for, or | ||||||
3 | related to, the direct or indirect acquisition, use, | ||||||
4 | maintenance or management, ownership, sale, exchange, | ||||||
5 | or any other disposition of intangible property; (2) | ||||||
6 | losses incurred, directly or indirectly, from | ||||||
7 | factoring transactions or discounting transactions; | ||||||
8 | (3) royalty, patent, technical, and copyright fees; | ||||||
9 | (4) licensing fees; and (5) other similar expenses and | ||||||
10 | costs.
For purposes of this subparagraph, "intangible | ||||||
11 | property" includes patents, patent applications, trade | ||||||
12 | names, trademarks, service marks, copyrights, mask | ||||||
13 | works, trade secrets, and similar types of intangible | ||||||
14 | assets. | ||||||
15 | This paragraph shall not apply to the following: | ||||||
16 | (i) any item of intangible expenses or costs | ||||||
17 | paid, accrued, or incurred, directly or | ||||||
18 | indirectly, from a transaction with a person who is | ||||||
19 | subject in a foreign country or state, other than a | ||||||
20 | state which requires mandatory unitary reporting, | ||||||
21 | to a tax on or measured by net income with respect | ||||||
22 | to such item; or | ||||||
23 | (ii) any item of intangible expense or cost | ||||||
24 | paid, accrued, or incurred, directly or | ||||||
25 | indirectly, if the taxpayer can establish, based | ||||||
26 | on a preponderance of the evidence, both of the |
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1 | following: | ||||||
2 | (a) the person during the same taxable | ||||||
3 | year paid, accrued, or incurred, the | ||||||
4 | intangible expense or cost to a person that is | ||||||
5 | not a related member, and | ||||||
6 | (b) the transaction giving rise to the | ||||||
7 | intangible expense or cost between the | ||||||
8 | taxpayer and the person did not have as a | ||||||
9 | principal purpose the avoidance of Illinois | ||||||
10 | income tax, and is paid pursuant to a contract | ||||||
11 | or agreement that reflects arm's-length terms; | ||||||
12 | or | ||||||
13 | (iii) any item of intangible expense or cost | ||||||
14 | paid, accrued, or incurred, directly or | ||||||
15 | indirectly, from a transaction with a person if the | ||||||
16 | taxpayer establishes by clear and convincing | ||||||
17 | evidence, that the adjustments are unreasonable; | ||||||
18 | or if the taxpayer and the Director agree in | ||||||
19 | writing to the application or use of an alternative | ||||||
20 | method of apportionment under Section 304(f);
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21 | Nothing in this subsection shall preclude the | ||||||
22 | Director from making any other adjustment | ||||||
23 | otherwise allowed under Section 404 of this Act for | ||||||
24 | any tax year beginning after the effective date of | ||||||
25 | this amendment provided such adjustment is made | ||||||
26 | pursuant to regulation adopted by the Department |
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1 | and such regulations provide methods and standards | ||||||
2 | by which the Department will utilize its authority | ||||||
3 | under Section 404 of this Act;
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4 | (D-19) For taxable years ending on or after | ||||||
5 | December 31, 2008, an amount equal to the amount of | ||||||
6 | insurance premium expenses and costs otherwise allowed | ||||||
7 | as a deduction in computing base income, and that were | ||||||
8 | paid, accrued, or incurred, directly or indirectly, to | ||||||
9 | a person who would be a member of the same unitary | ||||||
10 | business group but for the fact that the person is | ||||||
11 | prohibited under Section 1501(a)(27) from being | ||||||
12 | included in the unitary business group because he or | ||||||
13 | she is ordinarily required to apportion business | ||||||
14 | income under different subsections of Section 304. The | ||||||
15 | addition modification required by this subparagraph | ||||||
16 | shall be reduced to the extent that dividends were | ||||||
17 | included in base income of the unitary group for the | ||||||
18 | same taxable year and received by the taxpayer or by a | ||||||
19 | member of the taxpayer's unitary business group | ||||||
20 | (including amounts included in gross income under | ||||||
21 | Sections 951 through 964 of the Internal Revenue Code | ||||||
22 | and amounts included in gross income under Section 78 | ||||||
23 | of the Internal Revenue Code) with respect to the stock | ||||||
24 | of the same person to whom the premiums and costs were | ||||||
25 | directly or indirectly paid, incurred, or accrued. The | ||||||
26 | preceding sentence does not apply to the extent that |
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1 | the same dividends caused a reduction to the addition | ||||||
2 | modification required under Section 203(a)(2)(D-17) or | ||||||
3 | Section 203(a)(2)(D-18) of this Act.
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4 | (D-20) For taxable years beginning on or after | ||||||
5 | January 1,
2002 and ending on or before December 31, | ||||||
6 | 2006, in
the
case of a distribution from a qualified | ||||||
7 | tuition program under Section 529 of
the Internal | ||||||
8 | Revenue Code, other than (i) a distribution from a | ||||||
9 | College Savings
Pool created under Section 16.5 of the | ||||||
10 | State Treasurer Act or (ii) a
distribution from the | ||||||
11 | Illinois Prepaid Tuition Trust Fund, an amount equal to
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12 | the amount excluded from gross income under Section | ||||||
13 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
14 | January 1, 2007, in the case of a distribution from a | ||||||
15 | qualified tuition program under Section 529 of the | ||||||
16 | Internal Revenue Code, other than (i) a distribution | ||||||
17 | from a College Savings Pool created under Section 16.5 | ||||||
18 | of the State Treasurer Act, (ii) a distribution from | ||||||
19 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
20 | distribution from a qualified tuition program under | ||||||
21 | Section 529 of the Internal Revenue Code that (I) | ||||||
22 | adopts and determines that its offering materials | ||||||
23 | comply with the College Savings Plans Network's | ||||||
24 | disclosure principles and (II) has made reasonable | ||||||
25 | efforts to inform in-state residents of the existence | ||||||
26 | of in-state qualified tuition programs by informing |
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1 | Illinois residents directly and, where applicable, to | ||||||
2 | inform financial intermediaries distributing the | ||||||
3 | program to inform in-state residents of the existence | ||||||
4 | of in-state qualified tuition programs at least | ||||||
5 | annually, an amount equal to the amount excluded from | ||||||
6 | gross income under Section 529(c)(3)(B). | ||||||
7 | For the purposes of this subparagraph (D-20), a | ||||||
8 | qualified tuition program has made reasonable efforts | ||||||
9 | if it makes disclosures (which may use the term | ||||||
10 | "in-state program" or "in-state plan" and need not | ||||||
11 | specifically refer to Illinois or its qualified | ||||||
12 | programs by name) (i) directly to prospective | ||||||
13 | participants in its offering materials or makes a | ||||||
14 | public disclosure, such as a website posting; and (ii) | ||||||
15 | where applicable, to intermediaries selling the | ||||||
16 | out-of-state program in the same manner that the | ||||||
17 | out-of-state program distributes its offering | ||||||
18 | materials; | ||||||
19 | (D-21) For taxable years beginning on or after | ||||||
20 | January 1, 2007, in the case of transfer of moneys from | ||||||
21 | a qualified tuition program under Section 529 of the | ||||||
22 | Internal Revenue Code that is administered by the State | ||||||
23 | to an out-of-state program, an amount equal to the | ||||||
24 | amount of moneys previously deducted from base income | ||||||
25 | under subsection (a)(2)(Y) of this Section; | ||||||
26 | (D-22) For taxable years beginning on or after |
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1 | January 1, 2009, in the case of a nonqualified | ||||||
2 | withdrawal or refund of moneys from a qualified tuition | ||||||
3 | program under Section 529 of the Internal Revenue Code | ||||||
4 | administered by the State that is not used for | ||||||
5 | qualified expenses at an eligible education | ||||||
6 | institution, an amount equal to the contribution | ||||||
7 | component of the nonqualified withdrawal or refund | ||||||
8 | that was previously deducted from base income under | ||||||
9 | subsection (a)(2)(y) of this Section, provided that | ||||||
10 | the withdrawal or refund did not result from the | ||||||
11 | beneficiary's death or disability; | ||||||
12 | (D-23) An amount equal to the credit allowable to | ||||||
13 | the taxpayer under Section 218(a) of this Act, | ||||||
14 | determined without regard to Section 218(c) of this | ||||||
15 | Act; | ||||||
16 | (D-24) For taxable years ending on or after | ||||||
17 | December 31, 2017, an amount equal to the deduction | ||||||
18 | allowed under Section 199 of the Internal Revenue Code | ||||||
19 | for the taxable year; | ||||||
20 | and by deducting from the total so obtained the
sum of the | ||||||
21 | following amounts: | ||||||
22 | (E) For taxable years ending before December 31, | ||||||
23 | 2001,
any amount included in such total in respect of | ||||||
24 | any compensation
(including but not limited to any | ||||||
25 | compensation paid or accrued to a
serviceman while a | ||||||
26 | prisoner of war or missing in action) paid to a |
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1 | resident
by reason of being on active duty in the Armed | ||||||
2 | Forces of the United States
and in respect of any | ||||||
3 | compensation paid or accrued to a resident who as a
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4 | governmental employee was a prisoner of war or missing | ||||||
5 | in action, and in
respect of any compensation paid to a | ||||||
6 | resident in 1971 or thereafter for
annual training | ||||||
7 | performed pursuant to Sections 502 and 503, Title 32,
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8 | United States Code as a member of the Illinois National | ||||||
9 | Guard or, beginning with taxable years ending on or | ||||||
10 | after December 31, 2007, the National Guard of any | ||||||
11 | other state.
For taxable years ending on or after | ||||||
12 | December 31, 2001, any amount included in
such total in | ||||||
13 | respect of any compensation (including but not limited | ||||||
14 | to any
compensation paid or accrued to a serviceman | ||||||
15 | while a prisoner of war or missing
in action) paid to a | ||||||
16 | resident by reason of being a member of any component | ||||||
17 | of
the Armed Forces of the United States and in respect | ||||||
18 | of any compensation paid
or accrued to a resident who | ||||||
19 | as a governmental employee was a prisoner of war
or | ||||||
20 | missing in action, and in respect of any compensation | ||||||
21 | paid to a resident in
2001 or thereafter by reason of | ||||||
22 | being a member of the Illinois National Guard or, | ||||||
23 | beginning with taxable years ending on or after | ||||||
24 | December 31, 2007, the National Guard of any other | ||||||
25 | state.
The provisions of this subparagraph (E) are | ||||||
26 | exempt
from the provisions of Section 250; |
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1 | (F) An amount equal to all amounts included in such | ||||||
2 | total pursuant
to the provisions of Sections 402(a), | ||||||
3 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
4 | Internal Revenue Code, or included in such total as
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5 | distributions under the provisions of any retirement | ||||||
6 | or disability plan for
employees of any governmental | ||||||
7 | agency or unit, or retirement payments to
retired | ||||||
8 | partners, which payments are excluded in computing net | ||||||
9 | earnings
from self employment by Section 1402 of the | ||||||
10 | Internal Revenue Code and
regulations adopted pursuant | ||||||
11 | thereto; | ||||||
12 | (G) The valuation limitation amount; | ||||||
13 | (H) An amount equal to the amount of any tax | ||||||
14 | imposed by this Act
which was refunded to the taxpayer | ||||||
15 | and included in such total for the
taxable year; | ||||||
16 | (I) An amount equal to all amounts included in such | ||||||
17 | total pursuant
to the provisions of Section 111 of the | ||||||
18 | Internal Revenue Code as a
recovery of items previously | ||||||
19 | deducted from adjusted gross income in the
computation | ||||||
20 | of taxable income; | ||||||
21 | (J) An amount equal to those dividends included in | ||||||
22 | such total which were
paid by a corporation which | ||||||
23 | conducts business operations in a River Edge | ||||||
24 | Redevelopment Zone or zones created under the River | ||||||
25 | Edge Redevelopment Zone Act, and conducts
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26 | substantially all of its operations in a River Edge |
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1 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
2 | exempt from the provisions of Section 250; | ||||||
3 | (K) An amount equal to those dividends included in | ||||||
4 | such total that
were paid by a corporation that | ||||||
5 | conducts business operations in a federally
designated | ||||||
6 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
7 | High Impact
Business located in Illinois; provided | ||||||
8 | that dividends eligible for the
deduction provided in | ||||||
9 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
10 | shall not be eligible for the deduction provided under | ||||||
11 | this subparagraph
(K); | ||||||
12 | (L) For taxable years ending after December 31, | ||||||
13 | 1983, an amount equal to
all social security benefits | ||||||
14 | and railroad retirement benefits included in
such | ||||||
15 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
16 | Revenue Code; | ||||||
17 | (M) With the exception of any amounts subtracted | ||||||
18 | under subparagraph
(N), an amount equal to the sum of | ||||||
19 | all amounts disallowed as
deductions by (i) Sections | ||||||
20 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
21 | and all amounts of expenses allocable
to interest and | ||||||
22 | disallowed as deductions by Section 265(1) of the | ||||||
23 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
24 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
25 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
26 | Code, plus, for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
2 | Revenue Code and, for taxable years ending on or after | ||||||
3 | December 31, 2008, any amount included in gross income | ||||||
4 | under Section 87 of the Internal Revenue Code; the | ||||||
5 | provisions of this
subparagraph are exempt from the | ||||||
6 | provisions of Section 250; | ||||||
7 | (N) An amount equal to all amounts included in such | ||||||
8 | total which are
exempt from taxation by this State | ||||||
9 | either by reason of its statutes or
Constitution
or by | ||||||
10 | reason of the Constitution, treaties or statutes of the | ||||||
11 | United States;
provided that, in the case of any | ||||||
12 | statute of this State that exempts income
derived from | ||||||
13 | bonds or other obligations from the tax imposed under | ||||||
14 | this Act,
the amount exempted shall be the interest net | ||||||
15 | of bond premium amortization; | ||||||
16 | (O) An amount equal to any contribution made to a | ||||||
17 | job training
project established pursuant to the Tax | ||||||
18 | Increment Allocation Redevelopment Act; | ||||||
19 | (P) An amount equal to the amount of the deduction | ||||||
20 | used to compute the
federal income tax credit for | ||||||
21 | restoration of substantial amounts held under
claim of | ||||||
22 | right for the taxable year pursuant to Section 1341 of | ||||||
23 | the
Internal Revenue Code or of any itemized deduction | ||||||
24 | taken from adjusted gross income in the computation of | ||||||
25 | taxable income for restoration of substantial amounts | ||||||
26 | held under claim of right for the taxable year; |
| |||||||
| |||||||
1 | (Q) An amount equal to any amounts included in such | ||||||
2 | total, received by
the taxpayer as an acceleration in | ||||||
3 | the payment of life, endowment or annuity
benefits in | ||||||
4 | advance of the time they would otherwise be payable as | ||||||
5 | an indemnity
for a terminal illness; | ||||||
6 | (R) An amount equal to the amount of any federal or | ||||||
7 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
8 | (S) An amount, to the extent included in adjusted | ||||||
9 | gross income, equal
to the amount of a contribution | ||||||
10 | made in the taxable year on behalf of the
taxpayer to a | ||||||
11 | medical care savings account established under the | ||||||
12 | Medical Care
Savings Account Act or the Medical Care | ||||||
13 | Savings Account Act of 2000 to the
extent the | ||||||
14 | contribution is accepted by the account
administrator | ||||||
15 | as provided in that Act; | ||||||
16 | (T) An amount, to the extent included in adjusted | ||||||
17 | gross income, equal to
the amount of interest earned in | ||||||
18 | the taxable year on a medical care savings
account | ||||||
19 | established under the Medical Care Savings Account Act | ||||||
20 | or the Medical
Care Savings Account Act of 2000 on | ||||||
21 | behalf of the
taxpayer, other than interest added | ||||||
22 | pursuant to item (D-5) of this paragraph
(2); | ||||||
23 | (U) For one taxable year beginning on or after | ||||||
24 | January 1,
1994, an
amount equal to the total amount of | ||||||
25 | tax imposed and paid under subsections (a)
and (b) of | ||||||
26 | Section 201 of this Act on grant amounts received by |
| |||||||
| |||||||
1 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
2 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
3 | (V) Beginning with tax years ending on or after | ||||||
4 | December 31, 1995 and
ending with tax years ending on | ||||||
5 | or before December 31, 2004, an amount equal to
the | ||||||
6 | amount paid by a taxpayer who is a
self-employed | ||||||
7 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
8 | in a Subchapter S corporation for health insurance or | ||||||
9 | long-term
care insurance for that taxpayer or that | ||||||
10 | taxpayer's spouse or dependents, to
the extent that the | ||||||
11 | amount paid for that health insurance or long-term care
| ||||||
12 | insurance may be deducted under Section 213 of the | ||||||
13 | Internal Revenue Code, has not been deducted on the | ||||||
14 | federal income tax return of the taxpayer,
and does not | ||||||
15 | exceed the taxable income attributable to that | ||||||
16 | taxpayer's income,
self-employment income, or | ||||||
17 | Subchapter S corporation income; except that no
| ||||||
18 | deduction shall be allowed under this item (V) if the | ||||||
19 | taxpayer is eligible to
participate in any health | ||||||
20 | insurance or long-term care insurance plan of an
| ||||||
21 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
22 | amount of the health insurance and long-term care | ||||||
23 | insurance
subtracted under this item (V) shall be | ||||||
24 | determined by multiplying total
health insurance and | ||||||
25 | long-term care insurance premiums paid by the taxpayer
| ||||||
26 | times a number that represents the fractional |
| |||||||
| |||||||
1 | percentage of eligible medical
expenses under Section | ||||||
2 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
3 | deducted on the taxpayer's federal income tax return; | ||||||
4 | (W) For taxable years beginning on or after January | ||||||
5 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
6 | gross income
in the taxable year from amounts converted | ||||||
7 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
8 | exempt from the provisions of Section
250; | ||||||
9 | (X) For taxable year 1999 and thereafter, an amount | ||||||
10 | equal to the
amount of any (i) distributions, to the | ||||||
11 | extent includible in gross income for
federal income | ||||||
12 | tax purposes, made to the taxpayer because of his or | ||||||
13 | her status
as a victim of persecution for racial or | ||||||
14 | religious reasons by Nazi Germany or
any other Axis | ||||||
15 | regime or as an heir of the victim and (ii) items
of | ||||||
16 | income, to the extent
includible in gross income for | ||||||
17 | federal income tax purposes, attributable to,
derived | ||||||
18 | from or in any way related to assets stolen from, | ||||||
19 | hidden from, or
otherwise lost to a victim of
| ||||||
20 | persecution for racial or religious reasons by Nazi | ||||||
21 | Germany or any other Axis
regime immediately prior to, | ||||||
22 | during, and immediately after World War II,
including, | ||||||
23 | but
not limited to, interest on the proceeds receivable | ||||||
24 | as insurance
under policies issued to a victim of | ||||||
25 | persecution for racial or religious
reasons
by Nazi | ||||||
26 | Germany or any other Axis regime by European insurance |
| |||||||
| |||||||
1 | companies
immediately prior to and during World War II;
| ||||||
2 | provided, however, this subtraction from federal | ||||||
3 | adjusted gross income does not
apply to assets acquired | ||||||
4 | with such assets or with the proceeds from the sale of
| ||||||
5 | such assets; provided, further, this paragraph shall | ||||||
6 | only apply to a taxpayer
who was the first recipient of | ||||||
7 | such assets after their recovery and who is a
victim of | ||||||
8 | persecution for racial or religious reasons
by Nazi | ||||||
9 | Germany or any other Axis regime or as an heir of the | ||||||
10 | victim. The
amount of and the eligibility for any | ||||||
11 | public assistance, benefit, or
similar entitlement is | ||||||
12 | not affected by the inclusion of items (i) and (ii) of
| ||||||
13 | this paragraph in gross income for federal income tax | ||||||
14 | purposes.
This paragraph is exempt from the provisions | ||||||
15 | of Section 250; | ||||||
16 | (Y) For taxable years beginning on or after January | ||||||
17 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
18 | moneys contributed in the taxable year to a College | ||||||
19 | Savings Pool account under
Section 16.5 of the State | ||||||
20 | Treasurer Act, except that amounts excluded from
gross | ||||||
21 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
22 | Revenue Code
shall not be considered moneys | ||||||
23 | contributed under this subparagraph (Y). For taxable | ||||||
24 | years beginning on or after January 1, 2005, a maximum | ||||||
25 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
26 | College Savings Pool account under Section 16.5 of the
|
| |||||||
| |||||||
1 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
2 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
3 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
4 | Internal
Revenue Code shall not be considered moneys | ||||||
5 | contributed under this subparagraph
(Y). For purposes | ||||||
6 | of this subparagraph, contributions made by an | ||||||
7 | employer on behalf of an employee, or matching | ||||||
8 | contributions made by an employee, shall be treated as | ||||||
9 | made by the employee. This
subparagraph (Y) is exempt | ||||||
10 | from the provisions of Section 250; | ||||||
11 | (Z) For taxable years 2001 and thereafter, for the | ||||||
12 | taxable year in
which the bonus depreciation deduction
| ||||||
13 | is taken on the taxpayer's federal income tax return | ||||||
14 | under
subsection (k) of Section 168 of the Internal | ||||||
15 | Revenue Code and for each
applicable taxable year | ||||||
16 | thereafter, an amount equal to "x", where: | ||||||
17 | (1) "y" equals the amount of the depreciation | ||||||
18 | deduction taken for the
taxable year
on the | ||||||
19 | taxpayer's federal income tax return on property | ||||||
20 | for which the bonus
depreciation deduction
was | ||||||
21 | taken in any year under subsection (k) of Section | ||||||
22 | 168 of the Internal
Revenue Code, but not including | ||||||
23 | the bonus depreciation deduction; | ||||||
24 | (2) for taxable years ending on or before | ||||||
25 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
26 | and then divided by 70 (or "y"
multiplied by |
| |||||||
| |||||||
1 | 0.429); and | ||||||
2 | (3) for taxable years ending after December | ||||||
3 | 31, 2005: | ||||||
4 | (i) for property on which a bonus | ||||||
5 | depreciation deduction of 30% of the adjusted | ||||||
6 | basis was taken, "x" equals "y" multiplied by | ||||||
7 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
8 | 0.429); and | ||||||
9 | (ii) for property on which a bonus | ||||||
10 | depreciation deduction of 50% of the adjusted | ||||||
11 | basis was taken, "x" equals "y" multiplied by | ||||||
12 | 1.0. | ||||||
13 | The aggregate amount deducted under this | ||||||
14 | subparagraph in all taxable
years for any one piece of | ||||||
15 | property may not exceed the amount of the bonus
| ||||||
16 | depreciation deduction
taken on that property on the | ||||||
17 | taxpayer's federal income tax return under
subsection | ||||||
18 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
19 | subparagraph (Z) is exempt from the provisions of | ||||||
20 | Section 250; | ||||||
21 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
22 | or otherwise disposes of
property for which the | ||||||
23 | taxpayer was required in any taxable year to make an
| ||||||
24 | addition modification under subparagraph (D-15), then | ||||||
25 | an amount equal to that
addition modification.
| ||||||
26 | If the taxpayer continues to own property through |
| |||||||
| |||||||
1 | the last day of the last tax year for which the | ||||||
2 | taxpayer may claim a depreciation deduction for | ||||||
3 | federal income tax purposes and for which the taxpayer | ||||||
4 | was required in any taxable year to make an addition | ||||||
5 | modification under subparagraph (D-15), then an amount | ||||||
6 | equal to that addition modification.
| ||||||
7 | The taxpayer is allowed to take the deduction under | ||||||
8 | this subparagraph
only once with respect to any one | ||||||
9 | piece of property. | ||||||
10 | This subparagraph (AA) is exempt from the | ||||||
11 | provisions of Section 250; | ||||||
12 | (BB) Any amount included in adjusted gross income, | ||||||
13 | other
than
salary,
received by a driver in a | ||||||
14 | ridesharing arrangement using a motor vehicle; | ||||||
15 | (CC) The amount of (i) any interest income (net of | ||||||
16 | the deductions allocable thereto) taken into account | ||||||
17 | for the taxable year with respect to a transaction with | ||||||
18 | a taxpayer that is required to make an addition | ||||||
19 | modification with respect to such transaction under | ||||||
20 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
21 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
22 | the amount of that addition modification, and
(ii) any | ||||||
23 | income from intangible property (net of the deductions | ||||||
24 | allocable thereto) taken into account for the taxable | ||||||
25 | year with respect to a transaction with a taxpayer that | ||||||
26 | is required to make an addition modification with |
| |||||||
| |||||||
1 | respect to such transaction under Section | ||||||
2 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
3 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
4 | addition modification. This subparagraph (CC) is | ||||||
5 | exempt from the provisions of Section 250; | ||||||
6 | (DD) An amount equal to the interest income taken | ||||||
7 | into account for the taxable year (net of the | ||||||
8 | deductions allocable thereto) with respect to | ||||||
9 | transactions with (i) a foreign person who would be a | ||||||
10 | member of the taxpayer's unitary business group but for | ||||||
11 | the fact that the foreign person's business activity | ||||||
12 | outside the United States is 80% or more of that | ||||||
13 | person's total business activity and (ii) for taxable | ||||||
14 | years ending on or after December 31, 2008, to a person | ||||||
15 | who would be a member of the same unitary business | ||||||
16 | group but for the fact that the person is prohibited | ||||||
17 | under Section 1501(a)(27) from being included in the | ||||||
18 | unitary business group because he or she is ordinarily | ||||||
19 | required to apportion business income under different | ||||||
20 | subsections of Section 304, but not to exceed the | ||||||
21 | addition modification required to be made for the same | ||||||
22 | taxable year under Section 203(a)(2)(D-17) for | ||||||
23 | interest paid, accrued, or incurred, directly or | ||||||
24 | indirectly, to the same person. This subparagraph (DD) | ||||||
25 | is exempt from the provisions of Section 250; | ||||||
26 | (EE) An amount equal to the income from intangible |
| |||||||
| |||||||
1 | property taken into account for the taxable year (net | ||||||
2 | of the deductions allocable thereto) with respect to | ||||||
3 | transactions with (i) a foreign person who would be a | ||||||
4 | member of the taxpayer's unitary business group but for | ||||||
5 | the fact that the foreign person's business activity | ||||||
6 | outside the United States is 80% or more of that | ||||||
7 | person's total business activity and (ii) for taxable | ||||||
8 | years ending on or after December 31, 2008, to a person | ||||||
9 | who would be a member of the same unitary business | ||||||
10 | group but for the fact that the person is prohibited | ||||||
11 | under Section 1501(a)(27) from being included in the | ||||||
12 | unitary business group because he or she is ordinarily | ||||||
13 | required to apportion business income under different | ||||||
14 | subsections of Section 304, but not to exceed the | ||||||
15 | addition modification required to be made for the same | ||||||
16 | taxable year under Section 203(a)(2)(D-18) for | ||||||
17 | intangible expenses and costs paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to the same foreign | ||||||
19 | person. This subparagraph (EE) is exempt from the | ||||||
20 | provisions of Section 250; | ||||||
21 | (FF) An amount equal to any amount awarded to the | ||||||
22 | taxpayer during the taxable year by the Court of Claims | ||||||
23 | under subsection (c) of Section 8 of the Court of | ||||||
24 | Claims Act for time unjustly served in a State prison. | ||||||
25 | This subparagraph (FF) is exempt from the provisions of | ||||||
26 | Section 250; and |
| |||||||
| |||||||
1 | (GG) For taxable years ending on or after December | ||||||
2 | 31, 2011, in the case of a taxpayer who was required to | ||||||
3 | add back any insurance premiums under Section | ||||||
4 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
5 | that part of a reimbursement received from the | ||||||
6 | insurance company equal to the amount of the expense or | ||||||
7 | loss (including expenses incurred by the insurance | ||||||
8 | company) that would have been taken into account as a | ||||||
9 | deduction for federal income tax purposes if the | ||||||
10 | expense or loss had been uninsured. If a taxpayer makes | ||||||
11 | the election provided for by this subparagraph (GG), | ||||||
12 | the insurer to which the premiums were paid must add | ||||||
13 | back to income the amount subtracted by the taxpayer | ||||||
14 | pursuant to this subparagraph (GG). This subparagraph | ||||||
15 | (GG) is exempt from the provisions of Section 250.
| ||||||
16 | (b) Corporations. | ||||||
17 | (1) In general. In the case of a corporation, base | ||||||
18 | income means an
amount equal to the taxpayer's taxable | ||||||
19 | income for the taxable year as
modified by paragraph (2). | ||||||
20 | (2) Modifications. The taxable income referred to in | ||||||
21 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
22 | of the following amounts: | ||||||
23 | (A) An amount equal to all amounts paid or accrued | ||||||
24 | to the taxpayer
as interest and all distributions | ||||||
25 | received from regulated investment
companies during |
| |||||||
| |||||||
1 | the taxable year to the extent excluded from gross
| ||||||
2 | income in the computation of taxable income; | ||||||
3 | (B) An amount equal to the amount of tax imposed by | ||||||
4 | this Act to the
extent deducted from gross income in | ||||||
5 | the computation of taxable income
for the taxable year; | ||||||
6 | (C) In the case of a regulated investment company, | ||||||
7 | an amount equal to
the excess of (i) the net long-term | ||||||
8 | capital gain for the taxable year, over
(ii) the amount | ||||||
9 | of the capital gain dividends designated as such in | ||||||
10 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
11 | Revenue Code and any amount
designated under Section | ||||||
12 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
13 | attributable to the taxable year (this amendatory Act | ||||||
14 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
15 | law and is not a new
enactment); | ||||||
16 | (D) The amount of any net operating loss deduction | ||||||
17 | taken in arriving
at taxable income, other than a net | ||||||
18 | operating loss carried forward from a
taxable year | ||||||
19 | ending prior to December 31, 1986; | ||||||
20 | (E) For taxable years in which a net operating loss | ||||||
21 | carryback or
carryforward from a taxable year ending | ||||||
22 | prior to December 31, 1986 is an
element of taxable | ||||||
23 | income under paragraph (1) of subsection (e) or
| ||||||
24 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
25 | the amount by which
addition modifications other than | ||||||
26 | those provided by this subparagraph (E)
exceeded |
| |||||||
| |||||||
1 | subtraction modifications in such earlier taxable | ||||||
2 | year, with the
following limitations applied in the | ||||||
3 | order that they are listed: | ||||||
4 | (i) the addition modification relating to the | ||||||
5 | net operating loss
carried back or forward to the | ||||||
6 | taxable year from any taxable year ending
prior to | ||||||
7 | December 31, 1986 shall be reduced by the amount of | ||||||
8 | addition
modification under this subparagraph (E) | ||||||
9 | which related to that net operating
loss and which | ||||||
10 | was taken into account in calculating the base | ||||||
11 | income of an
earlier taxable year, and | ||||||
12 | (ii) the addition modification relating to the | ||||||
13 | net operating loss
carried back or forward to the | ||||||
14 | taxable year from any taxable year ending
prior to | ||||||
15 | December 31, 1986 shall not exceed the amount of | ||||||
16 | such carryback or
carryforward; | ||||||
17 | For taxable years in which there is a net operating | ||||||
18 | loss carryback or
carryforward from more than one other | ||||||
19 | taxable year ending prior to December
31, 1986, the | ||||||
20 | addition modification provided in this subparagraph | ||||||
21 | (E) shall
be the sum of the amounts computed | ||||||
22 | independently under the preceding
provisions of this | ||||||
23 | subparagraph (E) for each such taxable year; | ||||||
24 | (E-5) For taxable years ending after December 31, | ||||||
25 | 1997, an
amount equal to any eligible remediation costs | ||||||
26 | that the corporation
deducted in computing adjusted |
| |||||||
| |||||||
1 | gross income and for which the
corporation claims a | ||||||
2 | credit under subsection (l) of Section 201; | ||||||
3 | (E-10) For taxable years 2001 and thereafter, an | ||||||
4 | amount equal to the
bonus depreciation deduction taken | ||||||
5 | on the taxpayer's federal income tax return for the | ||||||
6 | taxable
year under subsection (k) of Section 168 of the | ||||||
7 | Internal Revenue Code; | ||||||
8 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
9 | or otherwise disposes of property for which the | ||||||
10 | taxpayer was required in any taxable year to
make an | ||||||
11 | addition modification under subparagraph (E-10), then | ||||||
12 | an amount equal
to the aggregate amount of the | ||||||
13 | deductions taken in all taxable
years under | ||||||
14 | subparagraph (T) with respect to that property. | ||||||
15 | If the taxpayer continues to own property through | ||||||
16 | the last day of the last tax year for which the | ||||||
17 | taxpayer may claim a depreciation deduction for | ||||||
18 | federal income tax purposes and for which the taxpayer | ||||||
19 | was allowed in any taxable year to make a subtraction | ||||||
20 | modification under subparagraph (T), then an amount | ||||||
21 | equal to that subtraction modification.
| ||||||
22 | The taxpayer is required to make the addition | ||||||
23 | modification under this
subparagraph
only once with | ||||||
24 | respect to any one piece of property; | ||||||
25 | (E-12) An amount equal to the amount otherwise | ||||||
26 | allowed as a deduction in computing base income for |
| |||||||
| |||||||
1 | interest paid, accrued, or incurred, directly or | ||||||
2 | indirectly, (i) for taxable years ending on or after | ||||||
3 | December 31, 2004, to a foreign person who would be a | ||||||
4 | member of the same unitary business group but for the | ||||||
5 | fact the foreign person's business activity outside | ||||||
6 | the United States is 80% or more of the foreign | ||||||
7 | person's total business activity and (ii) for taxable | ||||||
8 | years ending on or after December 31, 2008, to a person | ||||||
9 | who would be a member of the same unitary business | ||||||
10 | group but for the fact that the person is prohibited | ||||||
11 | under Section 1501(a)(27) from being included in the | ||||||
12 | unitary business group because he or she is ordinarily | ||||||
13 | required to apportion business income under different | ||||||
14 | subsections of Section 304. The addition modification | ||||||
15 | required by this subparagraph shall be reduced to the | ||||||
16 | extent that dividends were included in base income of | ||||||
17 | the unitary group for the same taxable year and | ||||||
18 | received by the taxpayer or by a member of the | ||||||
19 | taxpayer's unitary business group (including amounts | ||||||
20 | included in gross income pursuant to Sections 951 | ||||||
21 | through 964 of the Internal Revenue Code and amounts | ||||||
22 | included in gross income under Section 78 of the | ||||||
23 | Internal Revenue Code) with respect to the stock of the | ||||||
24 | same person to whom the interest was paid, accrued, or | ||||||
25 | incurred.
| ||||||
26 | This paragraph shall not apply to the following:
|
| |||||||
| |||||||
1 | (i) an item of interest paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to a person who | ||||||
3 | is subject in a foreign country or state, other | ||||||
4 | than a state which requires mandatory unitary | ||||||
5 | reporting, to a tax on or measured by net income | ||||||
6 | with respect to such interest; or | ||||||
7 | (ii) an item of interest paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to a person if | ||||||
9 | the taxpayer can establish, based on a | ||||||
10 | preponderance of the evidence, both of the | ||||||
11 | following: | ||||||
12 | (a) the person, during the same taxable | ||||||
13 | year, paid, accrued, or incurred, the interest | ||||||
14 | to a person that is not a related member, and | ||||||
15 | (b) the transaction giving rise to the | ||||||
16 | interest expense between the taxpayer and the | ||||||
17 | person did not have as a principal purpose the | ||||||
18 | avoidance of Illinois income tax, and is paid | ||||||
19 | pursuant to a contract or agreement that | ||||||
20 | reflects an arm's-length interest rate and | ||||||
21 | terms; or
| ||||||
22 | (iii) the taxpayer can establish, based on | ||||||
23 | clear and convincing evidence, that the interest | ||||||
24 | paid, accrued, or incurred relates to a contract or | ||||||
25 | agreement entered into at arm's-length rates and | ||||||
26 | terms and the principal purpose for the payment is |
| |||||||
| |||||||
1 | not federal or Illinois tax avoidance; or
| ||||||
2 | (iv) an item of interest paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to a person if | ||||||
4 | the taxpayer establishes by clear and convincing | ||||||
5 | evidence that the adjustments are unreasonable; or | ||||||
6 | if the taxpayer and the Director agree in writing | ||||||
7 | to the application or use of an alternative method | ||||||
8 | of apportionment under Section 304(f).
| ||||||
9 | Nothing in this subsection shall preclude the | ||||||
10 | Director from making any other adjustment | ||||||
11 | otherwise allowed under Section 404 of this Act for | ||||||
12 | any tax year beginning after the effective date of | ||||||
13 | this amendment provided such adjustment is made | ||||||
14 | pursuant to regulation adopted by the Department | ||||||
15 | and such regulations provide methods and standards | ||||||
16 | by which the Department will utilize its authority | ||||||
17 | under Section 404 of this Act;
| ||||||
18 | (E-13) An amount equal to the amount of intangible | ||||||
19 | expenses and costs otherwise allowed as a deduction in | ||||||
20 | computing base income, and that were paid, accrued, or | ||||||
21 | incurred, directly or indirectly, (i) for taxable | ||||||
22 | years ending on or after December 31, 2004, to a | ||||||
23 | foreign person who would be a member of the same | ||||||
24 | unitary business group but for the fact that the | ||||||
25 | foreign person's business activity outside the United | ||||||
26 | States is 80% or more of that person's total business |
| |||||||
| |||||||
1 | activity and (ii) for taxable years ending on or after | ||||||
2 | December 31, 2008, to a person who would be a member of | ||||||
3 | the same unitary business group but for the fact that | ||||||
4 | the person is prohibited under Section 1501(a)(27) | ||||||
5 | from being included in the unitary business group | ||||||
6 | because he or she is ordinarily required to apportion | ||||||
7 | business income under different subsections of Section | ||||||
8 | 304. The addition modification required by this | ||||||
9 | subparagraph shall be reduced to the extent that | ||||||
10 | dividends were included in base income of the unitary | ||||||
11 | group for the same taxable year and received by the | ||||||
12 | taxpayer or by a member of the taxpayer's unitary | ||||||
13 | business group (including amounts included in gross | ||||||
14 | income pursuant to Sections 951 through 964 of the | ||||||
15 | Internal Revenue Code and amounts included in gross | ||||||
16 | income under Section 78 of the Internal Revenue Code) | ||||||
17 | with respect to the stock of the same person to whom | ||||||
18 | the intangible expenses and costs were directly or | ||||||
19 | indirectly paid, incurred, or accrued. The preceding | ||||||
20 | sentence shall not apply to the extent that the same | ||||||
21 | dividends caused a reduction to the addition | ||||||
22 | modification required under Section 203(b)(2)(E-12) of | ||||||
23 | this Act.
As used in this subparagraph, the term | ||||||
24 | "intangible expenses and costs" includes (1) expenses, | ||||||
25 | losses, and costs for, or related to, the direct or | ||||||
26 | indirect acquisition, use, maintenance or management, |
| |||||||
| |||||||
1 | ownership, sale, exchange, or any other disposition of | ||||||
2 | intangible property; (2) losses incurred, directly or | ||||||
3 | indirectly, from factoring transactions or discounting | ||||||
4 | transactions; (3) royalty, patent, technical, and | ||||||
5 | copyright fees; (4) licensing fees; and (5) other | ||||||
6 | similar expenses and costs.
For purposes of this | ||||||
7 | subparagraph, "intangible property" includes patents, | ||||||
8 | patent applications, trade names, trademarks, service | ||||||
9 | marks, copyrights, mask works, trade secrets, and | ||||||
10 | similar types of intangible assets. | ||||||
11 | This paragraph shall not apply to the following: | ||||||
12 | (i) any item of intangible expenses or costs | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, from a transaction with a person who is | ||||||
15 | subject in a foreign country or state, other than a | ||||||
16 | state which requires mandatory unitary reporting, | ||||||
17 | to a tax on or measured by net income with respect | ||||||
18 | to such item; or | ||||||
19 | (ii) any item of intangible expense or cost | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, if the taxpayer can establish, based | ||||||
22 | on a preponderance of the evidence, both of the | ||||||
23 | following: | ||||||
24 | (a) the person during the same taxable | ||||||
25 | year paid, accrued, or incurred, the | ||||||
26 | intangible expense or cost to a person that is |
| |||||||
| |||||||
1 | not a related member, and | ||||||
2 | (b) the transaction giving rise to the | ||||||
3 | intangible expense or cost between the | ||||||
4 | taxpayer and the person did not have as a | ||||||
5 | principal purpose the avoidance of Illinois | ||||||
6 | income tax, and is paid pursuant to a contract | ||||||
7 | or agreement that reflects arm's-length terms; | ||||||
8 | or | ||||||
9 | (iii) any item of intangible expense or cost | ||||||
10 | paid, accrued, or incurred, directly or | ||||||
11 | indirectly, from a transaction with a person if the | ||||||
12 | taxpayer establishes by clear and convincing | ||||||
13 | evidence, that the adjustments are unreasonable; | ||||||
14 | or if the taxpayer and the Director agree in | ||||||
15 | writing to the application or use of an alternative | ||||||
16 | method of apportionment under Section 304(f);
| ||||||
17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act for | ||||||
20 | any tax year beginning after the effective date of | ||||||
21 | this amendment provided such adjustment is made | ||||||
22 | pursuant to regulation adopted by the Department | ||||||
23 | and such regulations provide methods and standards | ||||||
24 | by which the Department will utilize its authority | ||||||
25 | under Section 404 of this Act;
| ||||||
26 | (E-14) For taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2008, an amount equal to the amount of | ||||||
2 | insurance premium expenses and costs otherwise allowed | ||||||
3 | as a deduction in computing base income, and that were | ||||||
4 | paid, accrued, or incurred, directly or indirectly, to | ||||||
5 | a person who would be a member of the same unitary | ||||||
6 | business group but for the fact that the person is | ||||||
7 | prohibited under Section 1501(a)(27) from being | ||||||
8 | included in the unitary business group because he or | ||||||
9 | she is ordinarily required to apportion business | ||||||
10 | income under different subsections of Section 304. The | ||||||
11 | addition modification required by this subparagraph | ||||||
12 | shall be reduced to the extent that dividends were | ||||||
13 | included in base income of the unitary group for the | ||||||
14 | same taxable year and received by the taxpayer or by a | ||||||
15 | member of the taxpayer's unitary business group | ||||||
16 | (including amounts included in gross income under | ||||||
17 | Sections 951 through 964 of the Internal Revenue Code | ||||||
18 | and amounts included in gross income under Section 78 | ||||||
19 | of the Internal Revenue Code) with respect to the stock | ||||||
20 | of the same person to whom the premiums and costs were | ||||||
21 | directly or indirectly paid, incurred, or accrued. The | ||||||
22 | preceding sentence does not apply to the extent that | ||||||
23 | the same dividends caused a reduction to the addition | ||||||
24 | modification required under Section 203(b)(2)(E-12) or | ||||||
25 | Section 203(b)(2)(E-13) of this Act;
| ||||||
26 | (E-15) For taxable years beginning after December |
| |||||||
| |||||||
1 | 31, 2008, any deduction for dividends paid by a captive | ||||||
2 | real estate investment trust that is allowed to a real | ||||||
3 | estate investment trust under Section 857(b)(2)(B) of | ||||||
4 | the Internal Revenue Code for dividends paid; | ||||||
5 | (E-16) An amount equal to the credit allowable to | ||||||
6 | the taxpayer under Section 218(a) of this Act, | ||||||
7 | determined without regard to Section 218(c) of this | ||||||
8 | Act; | ||||||
9 | (E-17) For taxable years ending on or after | ||||||
10 | December 31, 2017, an amount equal to the deduction | ||||||
11 | allowed under Section 199 of the Internal Revenue Code | ||||||
12 | for the taxable year; | ||||||
13 | and by deducting from the total so obtained the sum of the | ||||||
14 | following
amounts: | ||||||
15 | (F) An amount equal to the amount of any tax | ||||||
16 | imposed by this Act
which was refunded to the taxpayer | ||||||
17 | and included in such total for the
taxable year; | ||||||
18 | (G) An amount equal to any amount included in such | ||||||
19 | total under
Section 78 of the Internal Revenue Code; | ||||||
20 | (H) In the case of a regulated investment company, | ||||||
21 | an amount equal
to the amount of exempt interest | ||||||
22 | dividends as defined in subsection (b)
(5) of Section | ||||||
23 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
24 | for the taxable year; | ||||||
25 | (I) With the exception of any amounts subtracted | ||||||
26 | under subparagraph
(J),
an amount equal to the sum of |
| |||||||
| |||||||
1 | all amounts disallowed as
deductions by (i) Sections | ||||||
2 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
3 | interest expense by Section 291(a)(3) of the Internal | ||||||
4 | Revenue Code, and all amounts of expenses allocable to | ||||||
5 | interest and
disallowed as deductions by Section | ||||||
6 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
7 | taxable years
ending on or after August 13, 1999, | ||||||
8 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
9 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
10 | for tax years ending on or after December 31, 2011, | ||||||
11 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
12 | of the Internal Revenue Code and, for taxable years | ||||||
13 | ending on or after December 31, 2008, any amount | ||||||
14 | included in gross income under Section 87 of the | ||||||
15 | Internal Revenue Code and the policyholders' share of | ||||||
16 | tax-exempt interest of a life insurance company under | ||||||
17 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
18 | the case of a life insurance company with gross income | ||||||
19 | from a decrease in reserves for the tax year) or | ||||||
20 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
21 | the case of a life insurance company allowed a | ||||||
22 | deduction for an increase in reserves for the tax | ||||||
23 | year); the
provisions of this
subparagraph are exempt | ||||||
24 | from the provisions of Section 250; | ||||||
25 | (J) An amount equal to all amounts included in such | ||||||
26 | total which are
exempt from taxation by this State |
| |||||||
| |||||||
1 | either by reason of its statutes or
Constitution
or by | ||||||
2 | reason of the Constitution, treaties or statutes of the | ||||||
3 | United States;
provided that, in the case of any | ||||||
4 | statute of this State that exempts income
derived from | ||||||
5 | bonds or other obligations from the tax imposed under | ||||||
6 | this Act,
the amount exempted shall be the interest net | ||||||
7 | of bond premium amortization; | ||||||
8 | (K) An amount equal to those dividends included in | ||||||
9 | such total
which were paid by a corporation which | ||||||
10 | conducts
business operations in a River Edge | ||||||
11 | Redevelopment Zone or zones created under the River | ||||||
12 | Edge Redevelopment Zone Act and conducts substantially | ||||||
13 | all of its
operations in a River Edge Redevelopment | ||||||
14 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
15 | provisions of Section 250; | ||||||
16 | (L) An amount equal to those dividends included in | ||||||
17 | such total that
were paid by a corporation that | ||||||
18 | conducts business operations in a federally
designated | ||||||
19 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
20 | High Impact
Business located in Illinois; provided | ||||||
21 | that dividends eligible for the
deduction provided in | ||||||
22 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
23 | shall not be eligible for the deduction provided under | ||||||
24 | this subparagraph
(L); | ||||||
25 | (M) For any taxpayer that is a financial | ||||||
26 | organization within the meaning
of Section 304(c) of |
| |||||||
| |||||||
1 | this Act, an amount included in such total as interest
| ||||||
2 | income from a loan or loans made by such taxpayer to a | ||||||
3 | borrower, to the extent
that such a loan is secured by | ||||||
4 | property which is eligible for the River Edge | ||||||
5 | Redevelopment Zone Investment Credit. To determine the | ||||||
6 | portion of a loan or loans that is
secured by property | ||||||
7 | eligible for a Section 201(f) investment
credit to the | ||||||
8 | borrower, the entire principal amount of the loan or | ||||||
9 | loans
between the taxpayer and the borrower should be | ||||||
10 | divided into the basis of the
Section 201(f) investment | ||||||
11 | credit property which secures the
loan or loans, using | ||||||
12 | for this purpose the original basis of such property on
| ||||||
13 | the date that it was placed in service in the River | ||||||
14 | Edge Redevelopment Zone. The subtraction modification | ||||||
15 | available to taxpayer in any
year under this subsection | ||||||
16 | shall be that portion of the total interest paid
by the | ||||||
17 | borrower with respect to such loan attributable to the | ||||||
18 | eligible
property as calculated under the previous | ||||||
19 | sentence. This subparagraph (M) is exempt from the | ||||||
20 | provisions of Section 250; | ||||||
21 | (M-1) For any taxpayer that is a financial | ||||||
22 | organization within the
meaning of Section 304(c) of | ||||||
23 | this Act, an amount included in such total as
interest | ||||||
24 | income from a loan or loans made by such taxpayer to a | ||||||
25 | borrower,
to the extent that such a loan is secured by | ||||||
26 | property which is eligible for
the High Impact Business |
| |||||||
| |||||||
1 | Investment Credit. To determine the portion of a
loan | ||||||
2 | or loans that is secured by property eligible for a | ||||||
3 | Section 201(h) investment credit to the borrower, the | ||||||
4 | entire principal amount of
the loan or loans between | ||||||
5 | the taxpayer and the borrower should be divided into
| ||||||
6 | the basis of the Section 201(h) investment credit | ||||||
7 | property which
secures the loan or loans, using for | ||||||
8 | this purpose the original basis of such
property on the | ||||||
9 | date that it was placed in service in a federally | ||||||
10 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
11 | Illinois. No taxpayer that is
eligible for the | ||||||
12 | deduction provided in subparagraph (M) of paragraph | ||||||
13 | (2) of
this subsection shall be eligible for the | ||||||
14 | deduction provided under this
subparagraph (M-1). The | ||||||
15 | subtraction modification available to taxpayers in
any | ||||||
16 | year under this subsection shall be that portion of the | ||||||
17 | total interest
paid by the borrower with respect to | ||||||
18 | such loan attributable to the eligible
property as | ||||||
19 | calculated under the previous sentence; | ||||||
20 | (N) Two times any contribution made during the | ||||||
21 | taxable year to a
designated zone organization to the | ||||||
22 | extent that the contribution (i)
qualifies as a | ||||||
23 | charitable contribution under subsection (c) of | ||||||
24 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
25 | by its terms, be used for a
project approved by the | ||||||
26 | Department of Commerce and Economic Opportunity under |
| |||||||
| |||||||
1 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
2 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
3 | This subparagraph (N) is exempt from the provisions of | ||||||
4 | Section 250; | ||||||
5 | (O) An amount equal to: (i) 85% for taxable years | ||||||
6 | ending on or before
December 31, 1992, or, a percentage | ||||||
7 | equal to the percentage allowable under
Section | ||||||
8 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
9 | taxable years ending
after December 31, 1992, of the | ||||||
10 | amount by which dividends included in taxable
income | ||||||
11 | and received from a corporation that is not created or | ||||||
12 | organized under
the laws of the United States or any | ||||||
13 | state or political subdivision thereof,
including, for | ||||||
14 | taxable years ending on or after December 31, 1988, | ||||||
15 | dividends
received or deemed received or paid or deemed | ||||||
16 | paid under Sections 951 through
965 of the Internal | ||||||
17 | Revenue Code, exceed the amount of the modification
| ||||||
18 | provided under subparagraph (G) of paragraph (2) of | ||||||
19 | this subsection (b) which
is related to such dividends, | ||||||
20 | and including, for taxable years ending on or after | ||||||
21 | December 31, 2008, dividends received from a captive | ||||||
22 | real estate investment trust; plus (ii) 100% of the | ||||||
23 | amount by which dividends,
included in taxable income | ||||||
24 | and received, including, for taxable years ending on
or | ||||||
25 | after December 31, 1988, dividends received or deemed | ||||||
26 | received or paid or
deemed paid under Sections 951 |
| |||||||
| |||||||
1 | through 964 of the Internal Revenue Code and including, | ||||||
2 | for taxable years ending on or after December 31, 2008, | ||||||
3 | dividends received from a captive real estate | ||||||
4 | investment trust, from
any such corporation specified | ||||||
5 | in clause (i) that would but for the provisions
of | ||||||
6 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
7 | treated as a member of
the affiliated group which | ||||||
8 | includes the dividend recipient, exceed the amount
of | ||||||
9 | the modification provided under subparagraph (G) of | ||||||
10 | paragraph (2) of this
subsection (b) which is related | ||||||
11 | to such dividends. This subparagraph (O) is exempt from | ||||||
12 | the provisions of Section 250 of this Act; | ||||||
13 | (P) An amount equal to any contribution made to a | ||||||
14 | job training project
established pursuant to the Tax | ||||||
15 | Increment Allocation Redevelopment Act; | ||||||
16 | (Q) An amount equal to the amount of the deduction | ||||||
17 | used to compute the
federal income tax credit for | ||||||
18 | restoration of substantial amounts held under
claim of | ||||||
19 | right for the taxable year pursuant to Section 1341 of | ||||||
20 | the
Internal Revenue Code; | ||||||
21 | (R) On and after July 20, 1999, in the case of an | ||||||
22 | attorney-in-fact with respect to whom an
interinsurer | ||||||
23 | or a reciprocal insurer has made the election under | ||||||
24 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
25 | 835, an amount equal to the excess, if
any, of the | ||||||
26 | amounts paid or incurred by that interinsurer or |
| |||||||
| |||||||
1 | reciprocal insurer
in the taxable year to the | ||||||
2 | attorney-in-fact over the deduction allowed to that
| ||||||
3 | interinsurer or reciprocal insurer with respect to the | ||||||
4 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
5 | Revenue Code for the taxable year; the provisions of | ||||||
6 | this subparagraph are exempt from the provisions of | ||||||
7 | Section 250; | ||||||
8 | (S) For taxable years ending on or after December | ||||||
9 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
10 | amount equal to all amounts of income allocable to a
| ||||||
11 | shareholder subject to the Personal Property Tax | ||||||
12 | Replacement Income Tax imposed
by subsections (c) and | ||||||
13 | (d) of Section 201 of this Act, including amounts
| ||||||
14 | allocable to organizations exempt from federal income | ||||||
15 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
16 | Code. This subparagraph (S) is exempt from
the | ||||||
17 | provisions of Section 250; | ||||||
18 | (T) For taxable years 2001 and thereafter, for the | ||||||
19 | taxable year in
which the bonus depreciation deduction
| ||||||
20 | is taken on the taxpayer's federal income tax return | ||||||
21 | under
subsection (k) of Section 168 of the Internal | ||||||
22 | Revenue Code and for each
applicable taxable year | ||||||
23 | thereafter, an amount equal to "x", where: | ||||||
24 | (1) "y" equals the amount of the depreciation | ||||||
25 | deduction taken for the
taxable year
on the | ||||||
26 | taxpayer's federal income tax return on property |
| |||||||
| |||||||
1 | for which the bonus
depreciation deduction
was | ||||||
2 | taken in any year under subsection (k) of Section | ||||||
3 | 168 of the Internal
Revenue Code, but not including | ||||||
4 | the bonus depreciation deduction; | ||||||
5 | (2) for taxable years ending on or before | ||||||
6 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
7 | and then divided by 70 (or "y"
multiplied by | ||||||
8 | 0.429); and | ||||||
9 | (3) for taxable years ending after December | ||||||
10 | 31, 2005: | ||||||
11 | (i) for property on which a bonus | ||||||
12 | depreciation deduction of 30% of the adjusted | ||||||
13 | basis was taken, "x" equals "y" multiplied by | ||||||
14 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
15 | 0.429); and | ||||||
16 | (ii) for property on which a bonus | ||||||
17 | depreciation deduction of 50% of the adjusted | ||||||
18 | basis was taken, "x" equals "y" multiplied by | ||||||
19 | 1.0. | ||||||
20 | The aggregate amount deducted under this | ||||||
21 | subparagraph in all taxable
years for any one piece of | ||||||
22 | property may not exceed the amount of the bonus
| ||||||
23 | depreciation deduction
taken on that property on the | ||||||
24 | taxpayer's federal income tax return under
subsection | ||||||
25 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
26 | subparagraph (T) is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250; | ||||||
2 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
3 | otherwise disposes of
property for which the taxpayer | ||||||
4 | was required in any taxable year to make an
addition | ||||||
5 | modification under subparagraph (E-10), then an amount | ||||||
6 | equal to that
addition modification. | ||||||
7 | If the taxpayer continues to own property through | ||||||
8 | the last day of the last tax year for which the | ||||||
9 | taxpayer may claim a depreciation deduction for | ||||||
10 | federal income tax purposes and for which the taxpayer | ||||||
11 | was required in any taxable year to make an addition | ||||||
12 | modification under subparagraph (E-10), then an amount | ||||||
13 | equal to that addition modification.
| ||||||
14 | The taxpayer is allowed to take the deduction under | ||||||
15 | this subparagraph
only once with respect to any one | ||||||
16 | piece of property. | ||||||
17 | This subparagraph (U) is exempt from the | ||||||
18 | provisions of Section 250; | ||||||
19 | (V) The amount of: (i) any interest income (net of | ||||||
20 | the deductions allocable thereto) taken into account | ||||||
21 | for the taxable year with respect to a transaction with | ||||||
22 | a taxpayer that is required to make an addition | ||||||
23 | modification with respect to such transaction under | ||||||
24 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
25 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
26 | the amount of such addition modification,
(ii) any |
| |||||||
| |||||||
1 | income from intangible property (net of the deductions | ||||||
2 | allocable thereto) taken into account for the taxable | ||||||
3 | year with respect to a transaction with a taxpayer that | ||||||
4 | is required to make an addition modification with | ||||||
5 | respect to such transaction under Section | ||||||
6 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
7 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
8 | addition modification, and (iii) any insurance premium | ||||||
9 | income (net of deductions allocable thereto) taken | ||||||
10 | into account for the taxable year with respect to a | ||||||
11 | transaction with a taxpayer that is required to make an | ||||||
12 | addition modification with respect to such transaction | ||||||
13 | under Section 203(a)(2)(D-19), Section | ||||||
14 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
15 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
16 | addition modification. This subparagraph (V) is exempt | ||||||
17 | from the provisions of Section 250;
| ||||||
18 | (W) An amount equal to the interest income taken | ||||||
19 | into account for the taxable year (net of the | ||||||
20 | deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but for | ||||||
23 | the fact that the foreign person's business activity | ||||||
24 | outside the United States is 80% or more of that | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304, but not to exceed the | ||||||
7 | addition modification required to be made for the same | ||||||
8 | taxable year under Section 203(b)(2)(E-12) for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, to the same person. This subparagraph (W) | ||||||
11 | is exempt from the provisions of Section 250;
| ||||||
12 | (X) An amount equal to the income from intangible | ||||||
13 | property taken into account for the taxable year (net | ||||||
14 | of the deductions allocable thereto) with respect to | ||||||
15 | transactions with (i) a foreign person who would be a | ||||||
16 | member of the taxpayer's unitary business group but for | ||||||
17 | the fact that the foreign person's business activity | ||||||
18 | outside the United States is 80% or more of that | ||||||
19 | person's total business activity and (ii) for taxable | ||||||
20 | years ending on or after December 31, 2008, to a person | ||||||
21 | who would be a member of the same unitary business | ||||||
22 | group but for the fact that the person is prohibited | ||||||
23 | under Section 1501(a)(27) from being included in the | ||||||
24 | unitary business group because he or she is ordinarily | ||||||
25 | required to apportion business income under different | ||||||
26 | subsections of Section 304, but not to exceed the |
| |||||||
| |||||||
1 | addition modification required to be made for the same | ||||||
2 | taxable year under Section 203(b)(2)(E-13) for | ||||||
3 | intangible expenses and costs paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to the same foreign | ||||||
5 | person. This subparagraph (X) is exempt from the | ||||||
6 | provisions of Section 250;
| ||||||
7 | (Y) For taxable years ending on or after December | ||||||
8 | 31, 2011, in the case of a taxpayer who was required to | ||||||
9 | add back any insurance premiums under Section | ||||||
10 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
11 | that part of a reimbursement received from the | ||||||
12 | insurance company equal to the amount of the expense or | ||||||
13 | loss (including expenses incurred by the insurance | ||||||
14 | company) that would have been taken into account as a | ||||||
15 | deduction for federal income tax purposes if the | ||||||
16 | expense or loss had been uninsured. If a taxpayer makes | ||||||
17 | the election provided for by this subparagraph (Y), the | ||||||
18 | insurer to which the premiums were paid must add back | ||||||
19 | to income the amount subtracted by the taxpayer | ||||||
20 | pursuant to this subparagraph (Y). This subparagraph | ||||||
21 | (Y) is exempt from the provisions of Section 250; and | ||||||
22 | (Z) The difference between the nondeductible | ||||||
23 | controlled foreign corporation dividends under Section | ||||||
24 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
25 | income of the taxpayer, computed without regard to | ||||||
26 | Section 965(e)(2)(A) of the Internal Revenue Code, and |
| |||||||
| |||||||
1 | without regard to any net operating loss deduction. | ||||||
2 | This subparagraph (Z) is exempt from the provisions of | ||||||
3 | Section 250. | ||||||
4 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
5 | "gross income"
in the case of a life insurance company, for | ||||||
6 | tax years ending on and after
December 31, 1994,
and prior | ||||||
7 | to December 31, 2011, shall mean the gross investment | ||||||
8 | income for the taxable year and, for tax years ending on or | ||||||
9 | after December 31, 2011, shall mean all amounts included in | ||||||
10 | life insurance gross income under Section 803(a)(3) of the | ||||||
11 | Internal Revenue Code.
| ||||||
12 | (c) Trusts and estates. | ||||||
13 | (1) In general. In the case of a trust or estate, base | ||||||
14 | income means
an amount equal to the taxpayer's taxable | ||||||
15 | income for the taxable year as
modified by paragraph (2). | ||||||
16 | (2) Modifications. Subject to the provisions of | ||||||
17 | paragraph (3), the
taxable income referred to in paragraph | ||||||
18 | (1) shall be modified by adding
thereto the sum of the | ||||||
19 | following amounts: | ||||||
20 | (A) An amount equal to all amounts paid or accrued | ||||||
21 | to the taxpayer
as interest or dividends during the | ||||||
22 | taxable year to the extent excluded
from gross income | ||||||
23 | in the computation of taxable income; | ||||||
24 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
25 | trust which, under
its governing instrument, is |
| |||||||
| |||||||
1 | required to distribute all of its income
currently, | ||||||
2 | $300; and (iii) any other trust, $100, but in each such | ||||||
3 | case,
only to the extent such amount was deducted in | ||||||
4 | the computation of
taxable income; | ||||||
5 | (C) An amount equal to the amount of tax imposed by | ||||||
6 | this Act to the
extent deducted from gross income in | ||||||
7 | the computation of taxable income
for the taxable year; | ||||||
8 | (D) The amount of any net operating loss deduction | ||||||
9 | taken in arriving at
taxable income, other than a net | ||||||
10 | operating loss carried forward from a
taxable year | ||||||
11 | ending prior to December 31, 1986; | ||||||
12 | (E) For taxable years in which a net operating loss | ||||||
13 | carryback or
carryforward from a taxable year ending | ||||||
14 | prior to December 31, 1986 is an
element of taxable | ||||||
15 | income under paragraph (1) of subsection (e) or | ||||||
16 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
17 | the amount by which addition
modifications other than | ||||||
18 | those provided by this subparagraph (E) exceeded
| ||||||
19 | subtraction modifications in such taxable year, with | ||||||
20 | the following limitations
applied in the order that | ||||||
21 | they are listed: | ||||||
22 | (i) the addition modification relating to the | ||||||
23 | net operating loss
carried back or forward to the | ||||||
24 | taxable year from any taxable year ending
prior to | ||||||
25 | December 31, 1986 shall be reduced by the amount of | ||||||
26 | addition
modification under this subparagraph (E) |
| |||||||
| |||||||
1 | which related to that net
operating loss and which | ||||||
2 | was taken into account in calculating the base
| ||||||
3 | income of an earlier taxable year, and | ||||||
4 | (ii) the addition modification relating to the | ||||||
5 | net operating loss
carried back or forward to the | ||||||
6 | taxable year from any taxable year ending
prior to | ||||||
7 | December 31, 1986 shall not exceed the amount of | ||||||
8 | such carryback or
carryforward; | ||||||
9 | For taxable years in which there is a net operating | ||||||
10 | loss carryback or
carryforward from more than one other | ||||||
11 | taxable year ending prior to December
31, 1986, the | ||||||
12 | addition modification provided in this subparagraph | ||||||
13 | (E) shall
be the sum of the amounts computed | ||||||
14 | independently under the preceding
provisions of this | ||||||
15 | subparagraph (E) for each such taxable year; | ||||||
16 | (F) For taxable years ending on or after January 1, | ||||||
17 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
18 | Section 164 of the Internal Revenue
Code if the trust | ||||||
19 | or estate is claiming the same tax for purposes of the
| ||||||
20 | Illinois foreign tax credit under Section 601 of this | ||||||
21 | Act; | ||||||
22 | (G) An amount equal to the amount of the capital | ||||||
23 | gain deduction
allowable under the Internal Revenue | ||||||
24 | Code, to the extent deducted from
gross income in the | ||||||
25 | computation of taxable income; | ||||||
26 | (G-5) For taxable years ending after December 31, |
| |||||||
| |||||||
1 | 1997, an
amount equal to any eligible remediation costs | ||||||
2 | that the trust or estate
deducted in computing adjusted | ||||||
3 | gross income and for which the trust
or estate claims a | ||||||
4 | credit under subsection (l) of Section 201; | ||||||
5 | (G-10) For taxable years 2001 and thereafter, an | ||||||
6 | amount equal to the
bonus depreciation deduction taken | ||||||
7 | on the taxpayer's federal income tax return for the | ||||||
8 | taxable
year under subsection (k) of Section 168 of the | ||||||
9 | Internal Revenue Code; and | ||||||
10 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
11 | or otherwise disposes of property for which the | ||||||
12 | taxpayer was required in any taxable year to
make an | ||||||
13 | addition modification under subparagraph (G-10), then | ||||||
14 | an amount equal
to the aggregate amount of the | ||||||
15 | deductions taken in all taxable
years under | ||||||
16 | subparagraph (R) with respect to that property. | ||||||
17 | If the taxpayer continues to own property through | ||||||
18 | the last day of the last tax year for which the | ||||||
19 | taxpayer may claim a depreciation deduction for | ||||||
20 | federal income tax purposes and for which the taxpayer | ||||||
21 | was allowed in any taxable year to make a subtraction | ||||||
22 | modification under subparagraph (R), then an amount | ||||||
23 | equal to that subtraction modification.
| ||||||
24 | The taxpayer is required to make the addition | ||||||
25 | modification under this
subparagraph
only once with | ||||||
26 | respect to any one piece of property; |
| |||||||
| |||||||
1 | (G-12) An amount equal to the amount otherwise | ||||||
2 | allowed as a deduction in computing base income for | ||||||
3 | interest paid, accrued, or incurred, directly or | ||||||
4 | indirectly, (i) for taxable years ending on or after | ||||||
5 | December 31, 2004, to a foreign person who would be a | ||||||
6 | member of the same unitary business group but for the | ||||||
7 | fact that the foreign person's business activity | ||||||
8 | outside the United States is 80% or more of the foreign | ||||||
9 | person's total business activity and (ii) for taxable | ||||||
10 | years ending on or after December 31, 2008, to a person | ||||||
11 | who would be a member of the same unitary business | ||||||
12 | group but for the fact that the person is prohibited | ||||||
13 | under Section 1501(a)(27) from being included in the | ||||||
14 | unitary business group because he or she is ordinarily | ||||||
15 | required to apportion business income under different | ||||||
16 | subsections of Section 304. The addition modification | ||||||
17 | required by this subparagraph shall be reduced to the | ||||||
18 | extent that dividends were included in base income of | ||||||
19 | the unitary group for the same taxable year and | ||||||
20 | received by the taxpayer or by a member of the | ||||||
21 | taxpayer's unitary business group (including amounts | ||||||
22 | included in gross income pursuant to Sections 951 | ||||||
23 | through 964 of the Internal Revenue Code and amounts | ||||||
24 | included in gross income under Section 78 of the | ||||||
25 | Internal Revenue Code) with respect to the stock of the | ||||||
26 | same person to whom the interest was paid, accrued, or |
| |||||||
| |||||||
1 | incurred.
| ||||||
2 | This paragraph shall not apply to the following:
| ||||||
3 | (i) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person who | ||||||
5 | is subject in a foreign country or state, other | ||||||
6 | than a state which requires mandatory unitary | ||||||
7 | reporting, to a tax on or measured by net income | ||||||
8 | with respect to such interest; or | ||||||
9 | (ii) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer can establish, based on a | ||||||
12 | preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person, during the same taxable | ||||||
15 | year, paid, accrued, or incurred, the interest | ||||||
16 | to a person that is not a related member, and | ||||||
17 | (b) the transaction giving rise to the | ||||||
18 | interest expense between the taxpayer and the | ||||||
19 | person did not have as a principal purpose the | ||||||
20 | avoidance of Illinois income tax, and is paid | ||||||
21 | pursuant to a contract or agreement that | ||||||
22 | reflects an arm's-length interest rate and | ||||||
23 | terms; or
| ||||||
24 | (iii) the taxpayer can establish, based on | ||||||
25 | clear and convincing evidence, that the interest | ||||||
26 | paid, accrued, or incurred relates to a contract or |
| |||||||
| |||||||
1 | agreement entered into at arm's-length rates and | ||||||
2 | terms and the principal purpose for the payment is | ||||||
3 | not federal or Illinois tax avoidance; or
| ||||||
4 | (iv) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer establishes by clear and convincing | ||||||
7 | evidence that the adjustments are unreasonable; or | ||||||
8 | if the taxpayer and the Director agree in writing | ||||||
9 | to the application or use of an alternative method | ||||||
10 | of apportionment under Section 304(f).
| ||||||
11 | Nothing in this subsection shall preclude the | ||||||
12 | Director from making any other adjustment | ||||||
13 | otherwise allowed under Section 404 of this Act for | ||||||
14 | any tax year beginning after the effective date of | ||||||
15 | this amendment provided such adjustment is made | ||||||
16 | pursuant to regulation adopted by the Department | ||||||
17 | and such regulations provide methods and standards | ||||||
18 | by which the Department will utilize its authority | ||||||
19 | under Section 404 of this Act;
| ||||||
20 | (G-13) An amount equal to the amount of intangible | ||||||
21 | expenses and costs otherwise allowed as a deduction in | ||||||
22 | computing base income, and that were paid, accrued, or | ||||||
23 | incurred, directly or indirectly, (i) for taxable | ||||||
24 | years ending on or after December 31, 2004, to a | ||||||
25 | foreign person who would be a member of the same | ||||||
26 | unitary business group but for the fact that the |
| |||||||
| |||||||
1 | foreign person's business activity outside the United | ||||||
2 | States is 80% or more of that person's total business | ||||||
3 | activity and (ii) for taxable years ending on or after | ||||||
4 | December 31, 2008, to a person who would be a member of | ||||||
5 | the same unitary business group but for the fact that | ||||||
6 | the person is prohibited under Section 1501(a)(27) | ||||||
7 | from being included in the unitary business group | ||||||
8 | because he or she is ordinarily required to apportion | ||||||
9 | business income under different subsections of Section | ||||||
10 | 304. The addition modification required by this | ||||||
11 | subparagraph shall be reduced to the extent that | ||||||
12 | dividends were included in base income of the unitary | ||||||
13 | group for the same taxable year and received by the | ||||||
14 | taxpayer or by a member of the taxpayer's unitary | ||||||
15 | business group (including amounts included in gross | ||||||
16 | income pursuant to Sections 951 through 964 of the | ||||||
17 | Internal Revenue Code and amounts included in gross | ||||||
18 | income under Section 78 of the Internal Revenue Code) | ||||||
19 | with respect to the stock of the same person to whom | ||||||
20 | the intangible expenses and costs were directly or | ||||||
21 | indirectly paid, incurred, or accrued. The preceding | ||||||
22 | sentence shall not apply to the extent that the same | ||||||
23 | dividends caused a reduction to the addition | ||||||
24 | modification required under Section 203(c)(2)(G-12) of | ||||||
25 | this Act. As used in this subparagraph, the term | ||||||
26 | "intangible expenses and costs" includes: (1) |
| |||||||
| |||||||
1 | expenses, losses, and costs for or related to the | ||||||
2 | direct or indirect acquisition, use, maintenance or | ||||||
3 | management, ownership, sale, exchange, or any other | ||||||
4 | disposition of intangible property; (2) losses | ||||||
5 | incurred, directly or indirectly, from factoring | ||||||
6 | transactions or discounting transactions; (3) royalty, | ||||||
7 | patent, technical, and copyright fees; (4) licensing | ||||||
8 | fees; and (5) other similar expenses and costs. For | ||||||
9 | purposes of this subparagraph, "intangible property" | ||||||
10 | includes patents, patent applications, trade names, | ||||||
11 | trademarks, service marks, copyrights, mask works, | ||||||
12 | trade secrets, and similar types of intangible assets. | ||||||
13 | This paragraph shall not apply to the following: | ||||||
14 | (i) any item of intangible expenses or costs | ||||||
15 | paid, accrued, or incurred, directly or | ||||||
16 | indirectly, from a transaction with a person who is | ||||||
17 | subject in a foreign country or state, other than a | ||||||
18 | state which requires mandatory unitary reporting, | ||||||
19 | to a tax on or measured by net income with respect | ||||||
20 | to such item; or | ||||||
21 | (ii) any item of intangible expense or cost | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, if the taxpayer can establish, based | ||||||
24 | on a preponderance of the evidence, both of the | ||||||
25 | following: | ||||||
26 | (a) the person during the same taxable |
| |||||||
| |||||||
1 | year paid, accrued, or incurred, the | ||||||
2 | intangible expense or cost to a person that is | ||||||
3 | not a related member, and | ||||||
4 | (b) the transaction giving rise to the | ||||||
5 | intangible expense or cost between the | ||||||
6 | taxpayer and the person did not have as a | ||||||
7 | principal purpose the avoidance of Illinois | ||||||
8 | income tax, and is paid pursuant to a contract | ||||||
9 | or agreement that reflects arm's-length terms; | ||||||
10 | or | ||||||
11 | (iii) any item of intangible expense or cost | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, from a transaction with a person if the | ||||||
14 | taxpayer establishes by clear and convincing | ||||||
15 | evidence, that the adjustments are unreasonable; | ||||||
16 | or if the taxpayer and the Director agree in | ||||||
17 | writing to the application or use of an alternative | ||||||
18 | method of apportionment under Section 304(f);
| ||||||
19 | Nothing in this subsection shall preclude the | ||||||
20 | Director from making any other adjustment | ||||||
21 | otherwise allowed under Section 404 of this Act for | ||||||
22 | any tax year beginning after the effective date of | ||||||
23 | this amendment provided such adjustment is made | ||||||
24 | pursuant to regulation adopted by the Department | ||||||
25 | and such regulations provide methods and standards | ||||||
26 | by which the Department will utilize its authority |
| |||||||
| |||||||
1 | under Section 404 of this Act;
| ||||||
2 | (G-14) For taxable years ending on or after | ||||||
3 | December 31, 2008, an amount equal to the amount of | ||||||
4 | insurance premium expenses and costs otherwise allowed | ||||||
5 | as a deduction in computing base income, and that were | ||||||
6 | paid, accrued, or incurred, directly or indirectly, to | ||||||
7 | a person who would be a member of the same unitary | ||||||
8 | business group but for the fact that the person is | ||||||
9 | prohibited under Section 1501(a)(27) from being | ||||||
10 | included in the unitary business group because he or | ||||||
11 | she is ordinarily required to apportion business | ||||||
12 | income under different subsections of Section 304. The | ||||||
13 | addition modification required by this subparagraph | ||||||
14 | shall be reduced to the extent that dividends were | ||||||
15 | included in base income of the unitary group for the | ||||||
16 | same taxable year and received by the taxpayer or by a | ||||||
17 | member of the taxpayer's unitary business group | ||||||
18 | (including amounts included in gross income under | ||||||
19 | Sections 951 through 964 of the Internal Revenue Code | ||||||
20 | and amounts included in gross income under Section 78 | ||||||
21 | of the Internal Revenue Code) with respect to the stock | ||||||
22 | of the same person to whom the premiums and costs were | ||||||
23 | directly or indirectly paid, incurred, or accrued. The | ||||||
24 | preceding sentence does not apply to the extent that | ||||||
25 | the same dividends caused a reduction to the addition | ||||||
26 | modification required under Section 203(c)(2)(G-12) or |
| |||||||
| |||||||
1 | Section 203(c)(2)(G-13) of this Act; | ||||||
2 | (G-15) An amount equal to the credit allowable to | ||||||
3 | the taxpayer under Section 218(a) of this Act, | ||||||
4 | determined without regard to Section 218(c) of this | ||||||
5 | Act; | ||||||
6 | (G-16) For taxable years ending on or after | ||||||
7 | December 31, 2017, an amount equal to the deduction | ||||||
8 | allowed under Section 199 of the Internal Revenue Code | ||||||
9 | for the taxable year; | ||||||
10 | and by deducting from the total so obtained the sum of the | ||||||
11 | following
amounts: | ||||||
12 | (H) An amount equal to all amounts included in such | ||||||
13 | total pursuant
to the provisions of Sections 402(a), | ||||||
14 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
15 | Internal Revenue Code or included in such total as
| ||||||
16 | distributions under the provisions of any retirement | ||||||
17 | or disability plan for
employees of any governmental | ||||||
18 | agency or unit, or retirement payments to
retired | ||||||
19 | partners, which payments are excluded in computing net | ||||||
20 | earnings
from self employment by Section 1402 of the | ||||||
21 | Internal Revenue Code and
regulations adopted pursuant | ||||||
22 | thereto; | ||||||
23 | (I) The valuation limitation amount; | ||||||
24 | (J) An amount equal to the amount of any tax | ||||||
25 | imposed by this Act
which was refunded to the taxpayer | ||||||
26 | and included in such total for the
taxable year; |
| |||||||
| |||||||
1 | (K) An amount equal to all amounts included in | ||||||
2 | taxable income as
modified by subparagraphs (A), (B), | ||||||
3 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
4 | taxation by this State either by reason of its statutes | ||||||
5 | or
Constitution
or by reason of the Constitution, | ||||||
6 | treaties or statutes of the United States;
provided | ||||||
7 | that, in the case of any statute of this State that | ||||||
8 | exempts income
derived from bonds or other obligations | ||||||
9 | from the tax imposed under this Act,
the amount | ||||||
10 | exempted shall be the interest net of bond premium | ||||||
11 | amortization; | ||||||
12 | (L) With the exception of any amounts subtracted | ||||||
13 | under subparagraph
(K),
an amount equal to the sum of | ||||||
14 | all amounts disallowed as
deductions by (i) Sections | ||||||
15 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
16 | and all amounts of expenses allocable
to interest and | ||||||
17 | disallowed as deductions by Section 265(1) of the | ||||||
18 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
19 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
20 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
21 | Code, plus, (iii) for taxable years ending on or after | ||||||
22 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
23 | Revenue Code and, for taxable years ending on or after | ||||||
24 | December 31, 2008, any amount included in gross income | ||||||
25 | under Section 87 of the Internal Revenue Code; the | ||||||
26 | provisions of this
subparagraph are exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (M) An amount equal to those dividends included in | ||||||
3 | such total
which were paid by a corporation which | ||||||
4 | conducts business operations in a River Edge | ||||||
5 | Redevelopment Zone or zones created under the River | ||||||
6 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
7 | all of its operations in a River Edge Redevelopment | ||||||
8 | Zone or zones. This subparagraph (M) is exempt from the | ||||||
9 | provisions of Section 250; | ||||||
10 | (N) An amount equal to any contribution made to a | ||||||
11 | job training
project established pursuant to the Tax | ||||||
12 | Increment Allocation
Redevelopment Act; | ||||||
13 | (O) An amount equal to those dividends included in | ||||||
14 | such total
that were paid by a corporation that | ||||||
15 | conducts business operations in a
federally designated | ||||||
16 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
17 | High Impact Business located in Illinois; provided | ||||||
18 | that dividends eligible
for the deduction provided in | ||||||
19 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
20 | shall not be eligible for the deduction provided under | ||||||
21 | this
subparagraph (O); | ||||||
22 | (P) An amount equal to the amount of the deduction | ||||||
23 | used to compute the
federal income tax credit for | ||||||
24 | restoration of substantial amounts held under
claim of | ||||||
25 | right for the taxable year pursuant to Section 1341 of | ||||||
26 | the
Internal Revenue Code; |
| |||||||
| |||||||
1 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
2 | equal to the
amount of any
(i) distributions, to the | ||||||
3 | extent includible in gross income for
federal income | ||||||
4 | tax purposes, made to the taxpayer because of
his or | ||||||
5 | her status as a victim of
persecution for racial or | ||||||
6 | religious reasons by Nazi Germany or any other Axis
| ||||||
7 | regime or as an heir of the victim and (ii) items
of | ||||||
8 | income, to the extent
includible in gross income for | ||||||
9 | federal income tax purposes, attributable to,
derived | ||||||
10 | from or in any way related to assets stolen from, | ||||||
11 | hidden from, or
otherwise lost to a victim of
| ||||||
12 | persecution for racial or religious reasons by Nazi
| ||||||
13 | Germany or any other Axis regime
immediately prior to, | ||||||
14 | during, and immediately after World War II, including,
| ||||||
15 | but
not limited to, interest on the proceeds receivable | ||||||
16 | as insurance
under policies issued to a victim of | ||||||
17 | persecution for racial or religious
reasons by Nazi | ||||||
18 | Germany or any other Axis regime by European insurance
| ||||||
19 | companies
immediately prior to and during World War II;
| ||||||
20 | provided, however, this subtraction from federal | ||||||
21 | adjusted gross income does not
apply to assets acquired | ||||||
22 | with such assets or with the proceeds from the sale of
| ||||||
23 | such assets; provided, further, this paragraph shall | ||||||
24 | only apply to a taxpayer
who was the first recipient of | ||||||
25 | such assets after their recovery and who is a
victim of
| ||||||
26 | persecution for racial or religious reasons
by Nazi |
| |||||||
| |||||||
1 | Germany or any other Axis regime or as an heir of the | ||||||
2 | victim. The
amount of and the eligibility for any | ||||||
3 | public assistance, benefit, or
similar entitlement is | ||||||
4 | not affected by the inclusion of items (i) and (ii) of
| ||||||
5 | this paragraph in gross income for federal income tax | ||||||
6 | purposes.
This paragraph is exempt from the provisions | ||||||
7 | of Section 250; | ||||||
8 | (R) For taxable years 2001 and thereafter, for the | ||||||
9 | taxable year in
which the bonus depreciation deduction
| ||||||
10 | is taken on the taxpayer's federal income tax return | ||||||
11 | under
subsection (k) of Section 168 of the Internal | ||||||
12 | Revenue Code and for each
applicable taxable year | ||||||
13 | thereafter, an amount equal to "x", where: | ||||||
14 | (1) "y" equals the amount of the depreciation | ||||||
15 | deduction taken for the
taxable year
on the | ||||||
16 | taxpayer's federal income tax return on property | ||||||
17 | for which the bonus
depreciation deduction
was | ||||||
18 | taken in any year under subsection (k) of Section | ||||||
19 | 168 of the Internal
Revenue Code, but not including | ||||||
20 | the bonus depreciation deduction; | ||||||
21 | (2) for taxable years ending on or before | ||||||
22 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
23 | and then divided by 70 (or "y"
multiplied by | ||||||
24 | 0.429); and | ||||||
25 | (3) for taxable years ending after December | ||||||
26 | 31, 2005: |
| |||||||
| |||||||
1 | (i) for property on which a bonus | ||||||
2 | depreciation deduction of 30% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
5 | 0.429); and | ||||||
6 | (ii) for property on which a bonus | ||||||
7 | depreciation deduction of 50% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 1.0. | ||||||
10 | The aggregate amount deducted under this | ||||||
11 | subparagraph in all taxable
years for any one piece of | ||||||
12 | property may not exceed the amount of the bonus
| ||||||
13 | depreciation deduction
taken on that property on the | ||||||
14 | taxpayer's federal income tax return under
subsection | ||||||
15 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
16 | subparagraph (R) is exempt from the provisions of | ||||||
17 | Section 250; | ||||||
18 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
19 | otherwise disposes of
property for which the taxpayer | ||||||
20 | was required in any taxable year to make an
addition | ||||||
21 | modification under subparagraph (G-10), then an amount | ||||||
22 | equal to that
addition modification. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which the | ||||||
25 | taxpayer may claim a depreciation deduction for | ||||||
26 | federal income tax purposes and for which the taxpayer |
| |||||||
| |||||||
1 | was required in any taxable year to make an addition | ||||||
2 | modification under subparagraph (G-10), then an amount | ||||||
3 | equal to that addition modification.
| ||||||
4 | The taxpayer is allowed to take the deduction under | ||||||
5 | this subparagraph
only once with respect to any one | ||||||
6 | piece of property. | ||||||
7 | This subparagraph (S) is exempt from the | ||||||
8 | provisions of Section 250; | ||||||
9 | (T) The amount of (i) any interest income (net of | ||||||
10 | the deductions allocable thereto) taken into account | ||||||
11 | for the taxable year with respect to a transaction with | ||||||
12 | a taxpayer that is required to make an addition | ||||||
13 | modification with respect to such transaction under | ||||||
14 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
15 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
16 | the amount of such addition modification and
(ii) any | ||||||
17 | income from intangible property (net of the deductions | ||||||
18 | allocable thereto) taken into account for the taxable | ||||||
19 | year with respect to a transaction with a taxpayer that | ||||||
20 | is required to make an addition modification with | ||||||
21 | respect to such transaction under Section | ||||||
22 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
23 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
24 | addition modification. This subparagraph (T) is exempt | ||||||
25 | from the provisions of Section 250;
| ||||||
26 | (U) An amount equal to the interest income taken |
| |||||||
| |||||||
1 | into account for the taxable year (net of the | ||||||
2 | deductions allocable thereto) with respect to | ||||||
3 | transactions with (i) a foreign person who would be a | ||||||
4 | member of the taxpayer's unitary business group but for | ||||||
5 | the fact the foreign person's business activity | ||||||
6 | outside the United States is 80% or more of that | ||||||
7 | person's total business activity and (ii) for taxable | ||||||
8 | years ending on or after December 31, 2008, to a person | ||||||
9 | who would be a member of the same unitary business | ||||||
10 | group but for the fact that the person is prohibited | ||||||
11 | under Section 1501(a)(27) from being included in the | ||||||
12 | unitary business group because he or she is ordinarily | ||||||
13 | required to apportion business income under different | ||||||
14 | subsections of Section 304, but not to exceed the | ||||||
15 | addition modification required to be made for the same | ||||||
16 | taxable year under Section 203(c)(2)(G-12) for | ||||||
17 | interest paid, accrued, or incurred, directly or | ||||||
18 | indirectly, to the same person. This subparagraph (U) | ||||||
19 | is exempt from the provisions of Section 250; | ||||||
20 | (V) An amount equal to the income from intangible | ||||||
21 | property taken into account for the taxable year (net | ||||||
22 | of the deductions allocable thereto) with respect to | ||||||
23 | transactions with (i) a foreign person who would be a | ||||||
24 | member of the taxpayer's unitary business group but for | ||||||
25 | the fact that the foreign person's business activity | ||||||
26 | outside the United States is 80% or more of that |
| |||||||
| |||||||
1 | person's total business activity and (ii) for taxable | ||||||
2 | years ending on or after December 31, 2008, to a person | ||||||
3 | who would be a member of the same unitary business | ||||||
4 | group but for the fact that the person is prohibited | ||||||
5 | under Section 1501(a)(27) from being included in the | ||||||
6 | unitary business group because he or she is ordinarily | ||||||
7 | required to apportion business income under different | ||||||
8 | subsections of Section 304, but not to exceed the | ||||||
9 | addition modification required to be made for the same | ||||||
10 | taxable year under Section 203(c)(2)(G-13) for | ||||||
11 | intangible expenses and costs paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to the same foreign | ||||||
13 | person. This subparagraph (V) is exempt from the | ||||||
14 | provisions of Section 250;
| ||||||
15 | (W) in the case of an estate, an amount equal to | ||||||
16 | all amounts included in such total pursuant to the | ||||||
17 | provisions of Section 111 of the Internal Revenue Code | ||||||
18 | as a recovery of items previously deducted by the | ||||||
19 | decedent from adjusted gross income in the computation | ||||||
20 | of taxable income. This subparagraph (W) is exempt from | ||||||
21 | Section 250; | ||||||
22 | (X) an amount equal to the refund included in such | ||||||
23 | total of any tax deducted for federal income tax | ||||||
24 | purposes, to the extent that deduction was added back | ||||||
25 | under subparagraph (F). This subparagraph (X) is | ||||||
26 | exempt from the provisions of Section 250; and |
| |||||||
| |||||||
1 | (Y) For taxable years ending on or after December | ||||||
2 | 31, 2011, in the case of a taxpayer who was required to | ||||||
3 | add back any insurance premiums under Section | ||||||
4 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
5 | that part of a reimbursement received from the | ||||||
6 | insurance company equal to the amount of the expense or | ||||||
7 | loss (including expenses incurred by the insurance | ||||||
8 | company) that would have been taken into account as a | ||||||
9 | deduction for federal income tax purposes if the | ||||||
10 | expense or loss had been uninsured. If a taxpayer makes | ||||||
11 | the election provided for by this subparagraph (Y), the | ||||||
12 | insurer to which the premiums were paid must add back | ||||||
13 | to income the amount subtracted by the taxpayer | ||||||
14 | pursuant to this subparagraph (Y). This subparagraph | ||||||
15 | (Y) is exempt from the provisions of Section 250. | ||||||
16 | (3) Limitation. The amount of any modification | ||||||
17 | otherwise required
under this subsection shall, under | ||||||
18 | regulations prescribed by the
Department, be adjusted by | ||||||
19 | any amounts included therein which were
properly paid, | ||||||
20 | credited, or required to be distributed, or permanently set
| ||||||
21 | aside for charitable purposes pursuant to Internal Revenue | ||||||
22 | Code Section
642(c) during the taxable year.
| ||||||
23 | (d) Partnerships. | ||||||
24 | (1) In general. In the case of a partnership, base | ||||||
25 | income means an
amount equal to the taxpayer's taxable |
| |||||||
| |||||||
1 | income for the taxable year as
modified by paragraph (2). | ||||||
2 | (2) Modifications. The taxable income referred to in | ||||||
3 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
4 | of the following amounts: | ||||||
5 | (A) An amount equal to all amounts paid or accrued | ||||||
6 | to the taxpayer as
interest or dividends during the | ||||||
7 | taxable year to the extent excluded from
gross income | ||||||
8 | in the computation of taxable income; | ||||||
9 | (B) An amount equal to the amount of tax imposed by | ||||||
10 | this Act to the
extent deducted from gross income for | ||||||
11 | the taxable year; | ||||||
12 | (C) The amount of deductions allowed to the | ||||||
13 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
14 | Revenue Code in calculating its taxable income; | ||||||
15 | (D) An amount equal to the amount of the capital | ||||||
16 | gain deduction
allowable under the Internal Revenue | ||||||
17 | Code, to the extent deducted from
gross income in the | ||||||
18 | computation of taxable income; | ||||||
19 | (D-5) For taxable years 2001 and thereafter, an | ||||||
20 | amount equal to the
bonus depreciation deduction taken | ||||||
21 | on the taxpayer's federal income tax return for the | ||||||
22 | taxable
year under subsection (k) of Section 168 of the | ||||||
23 | Internal Revenue Code; | ||||||
24 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
25 | or otherwise disposes of
property for which the | ||||||
26 | taxpayer was required in any taxable year to make an
|
| |||||||
| |||||||
1 | addition modification under subparagraph (D-5), then | ||||||
2 | an amount equal to the
aggregate amount of the | ||||||
3 | deductions taken in all taxable years
under | ||||||
4 | subparagraph (O) with respect to that property. | ||||||
5 | If the taxpayer continues to own property through | ||||||
6 | the last day of the last tax year for which the | ||||||
7 | taxpayer may claim a depreciation deduction for | ||||||
8 | federal income tax purposes and for which the taxpayer | ||||||
9 | was allowed in any taxable year to make a subtraction | ||||||
10 | modification under subparagraph (O), then an amount | ||||||
11 | equal to that subtraction modification.
| ||||||
12 | The taxpayer is required to make the addition | ||||||
13 | modification under this
subparagraph
only once with | ||||||
14 | respect to any one piece of property; | ||||||
15 | (D-7) An amount equal to the amount otherwise | ||||||
16 | allowed as a deduction in computing base income for | ||||||
17 | interest paid, accrued, or incurred, directly or | ||||||
18 | indirectly, (i) for taxable years ending on or after | ||||||
19 | December 31, 2004, to a foreign person who would be a | ||||||
20 | member of the same unitary business group but for the | ||||||
21 | fact the foreign person's business activity outside | ||||||
22 | the United States is 80% or more of the foreign | ||||||
23 | person's total business activity and (ii) for taxable | ||||||
24 | years ending on or after December 31, 2008, to a person | ||||||
25 | who would be a member of the same unitary business | ||||||
26 | group but for the fact that the person is prohibited |
| |||||||
| |||||||
1 | under Section 1501(a)(27) from being included in the | ||||||
2 | unitary business group because he or she is ordinarily | ||||||
3 | required to apportion business income under different | ||||||
4 | subsections of Section 304. The addition modification | ||||||
5 | required by this subparagraph shall be reduced to the | ||||||
6 | extent that dividends were included in base income of | ||||||
7 | the unitary group for the same taxable year and | ||||||
8 | received by the taxpayer or by a member of the | ||||||
9 | taxpayer's unitary business group (including amounts | ||||||
10 | included in gross income pursuant to Sections 951 | ||||||
11 | through 964 of the Internal Revenue Code and amounts | ||||||
12 | included in gross income under Section 78 of the | ||||||
13 | Internal Revenue Code) with respect to the stock of the | ||||||
14 | same person to whom the interest was paid, accrued, or | ||||||
15 | incurred.
| ||||||
16 | This paragraph shall not apply to the following:
| ||||||
17 | (i) an item of interest paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to a person who | ||||||
19 | is subject in a foreign country or state, other | ||||||
20 | than a state which requires mandatory unitary | ||||||
21 | reporting, to a tax on or measured by net income | ||||||
22 | with respect to such interest; or | ||||||
23 | (ii) an item of interest paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to a person if | ||||||
25 | the taxpayer can establish, based on a | ||||||
26 | preponderance of the evidence, both of the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (a) the person, during the same taxable | ||||||
3 | year, paid, accrued, or incurred, the interest | ||||||
4 | to a person that is not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | interest expense between the taxpayer and the | ||||||
7 | person did not have as a principal purpose the | ||||||
8 | avoidance of Illinois income tax, and is paid | ||||||
9 | pursuant to a contract or agreement that | ||||||
10 | reflects an arm's-length interest rate and | ||||||
11 | terms; or
| ||||||
12 | (iii) the taxpayer can establish, based on | ||||||
13 | clear and convincing evidence, that the interest | ||||||
14 | paid, accrued, or incurred relates to a contract or | ||||||
15 | agreement entered into at arm's-length rates and | ||||||
16 | terms and the principal purpose for the payment is | ||||||
17 | not federal or Illinois tax avoidance; or
| ||||||
18 | (iv) an item of interest paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to a person if | ||||||
20 | the taxpayer establishes by clear and convincing | ||||||
21 | evidence that the adjustments are unreasonable; or | ||||||
22 | if the taxpayer and the Director agree in writing | ||||||
23 | to the application or use of an alternative method | ||||||
24 | of apportionment under Section 304(f).
| ||||||
25 | Nothing in this subsection shall preclude the | ||||||
26 | Director from making any other adjustment |
| |||||||
| |||||||
1 | otherwise allowed under Section 404 of this Act for | ||||||
2 | any tax year beginning after the effective date of | ||||||
3 | this amendment provided such adjustment is made | ||||||
4 | pursuant to regulation adopted by the Department | ||||||
5 | and such regulations provide methods and standards | ||||||
6 | by which the Department will utilize its authority | ||||||
7 | under Section 404 of this Act; and
| ||||||
8 | (D-8) An amount equal to the amount of intangible | ||||||
9 | expenses and costs otherwise allowed as a deduction in | ||||||
10 | computing base income, and that were paid, accrued, or | ||||||
11 | incurred, directly or indirectly, (i) for taxable | ||||||
12 | years ending on or after December 31, 2004, to a | ||||||
13 | foreign person who would be a member of the same | ||||||
14 | unitary business group but for the fact that the | ||||||
15 | foreign person's business activity outside the United | ||||||
16 | States is 80% or more of that person's total business | ||||||
17 | activity and (ii) for taxable years ending on or after | ||||||
18 | December 31, 2008, to a person who would be a member of | ||||||
19 | the same unitary business group but for the fact that | ||||||
20 | the person is prohibited under Section 1501(a)(27) | ||||||
21 | from being included in the unitary business group | ||||||
22 | because he or she is ordinarily required to apportion | ||||||
23 | business income under different subsections of Section | ||||||
24 | 304. The addition modification required by this | ||||||
25 | subparagraph shall be reduced to the extent that | ||||||
26 | dividends were included in base income of the unitary |
| |||||||
| |||||||
1 | group for the same taxable year and received by the | ||||||
2 | taxpayer or by a member of the taxpayer's unitary | ||||||
3 | business group (including amounts included in gross | ||||||
4 | income pursuant to Sections 951 through 964 of the | ||||||
5 | Internal Revenue Code and amounts included in gross | ||||||
6 | income under Section 78 of the Internal Revenue Code) | ||||||
7 | with respect to the stock of the same person to whom | ||||||
8 | the intangible expenses and costs were directly or | ||||||
9 | indirectly paid, incurred or accrued. The preceding | ||||||
10 | sentence shall not apply to the extent that the same | ||||||
11 | dividends caused a reduction to the addition | ||||||
12 | modification required under Section 203(d)(2)(D-7) of | ||||||
13 | this Act. As used in this subparagraph, the term | ||||||
14 | "intangible expenses and costs" includes (1) expenses, | ||||||
15 | losses, and costs for, or related to, the direct or | ||||||
16 | indirect acquisition, use, maintenance or management, | ||||||
17 | ownership, sale, exchange, or any other disposition of | ||||||
18 | intangible property; (2) losses incurred, directly or | ||||||
19 | indirectly, from factoring transactions or discounting | ||||||
20 | transactions; (3) royalty, patent, technical, and | ||||||
21 | copyright fees; (4) licensing fees; and (5) other | ||||||
22 | similar expenses and costs. For purposes of this | ||||||
23 | subparagraph, "intangible property" includes patents, | ||||||
24 | patent applications, trade names, trademarks, service | ||||||
25 | marks, copyrights, mask works, trade secrets, and | ||||||
26 | similar types of intangible assets; |
| |||||||
| |||||||
1 | This paragraph shall not apply to the following: | ||||||
2 | (i) any item of intangible expenses or costs | ||||||
3 | paid, accrued, or incurred, directly or | ||||||
4 | indirectly, from a transaction with a person who is | ||||||
5 | subject in a foreign country or state, other than a | ||||||
6 | state which requires mandatory unitary reporting, | ||||||
7 | to a tax on or measured by net income with respect | ||||||
8 | to such item; or | ||||||
9 | (ii) any item of intangible expense or cost | ||||||
10 | paid, accrued, or incurred, directly or | ||||||
11 | indirectly, if the taxpayer can establish, based | ||||||
12 | on a preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person during the same taxable | ||||||
15 | year paid, accrued, or incurred, the | ||||||
16 | intangible expense or cost to a person that is | ||||||
17 | not a related member, and | ||||||
18 | (b) the transaction giving rise to the | ||||||
19 | intangible expense or cost between the | ||||||
20 | taxpayer and the person did not have as a | ||||||
21 | principal purpose the avoidance of Illinois | ||||||
22 | income tax, and is paid pursuant to a contract | ||||||
23 | or agreement that reflects arm's-length terms; | ||||||
24 | or | ||||||
25 | (iii) any item of intangible expense or cost | ||||||
26 | paid, accrued, or incurred, directly or |
| |||||||
| |||||||
1 | indirectly, from a transaction with a person if the | ||||||
2 | taxpayer establishes by clear and convincing | ||||||
3 | evidence, that the adjustments are unreasonable; | ||||||
4 | or if the taxpayer and the Director agree in | ||||||
5 | writing to the application or use of an alternative | ||||||
6 | method of apportionment under Section 304(f);
| ||||||
7 | Nothing in this subsection shall preclude the | ||||||
8 | Director from making any other adjustment | ||||||
9 | otherwise allowed under Section 404 of this Act for | ||||||
10 | any tax year beginning after the effective date of | ||||||
11 | this amendment provided such adjustment is made | ||||||
12 | pursuant to regulation adopted by the Department | ||||||
13 | and such regulations provide methods and standards | ||||||
14 | by which the Department will utilize its authority | ||||||
15 | under Section 404 of this Act;
| ||||||
16 | (D-9) For taxable years ending on or after December | ||||||
17 | 31, 2008, an amount equal to the amount of insurance | ||||||
18 | premium expenses and costs otherwise allowed as a | ||||||
19 | deduction in computing base income, and that were paid, | ||||||
20 | accrued, or incurred, directly or indirectly, to a | ||||||
21 | person who would be a member of the same unitary | ||||||
22 | business group but for the fact that the person is | ||||||
23 | prohibited under Section 1501(a)(27) from being | ||||||
24 | included in the unitary business group because he or | ||||||
25 | she is ordinarily required to apportion business | ||||||
26 | income under different subsections of Section 304. The |
| |||||||
| |||||||
1 | addition modification required by this subparagraph | ||||||
2 | shall be reduced to the extent that dividends were | ||||||
3 | included in base income of the unitary group for the | ||||||
4 | same taxable year and received by the taxpayer or by a | ||||||
5 | member of the taxpayer's unitary business group | ||||||
6 | (including amounts included in gross income under | ||||||
7 | Sections 951 through 964 of the Internal Revenue Code | ||||||
8 | and amounts included in gross income under Section 78 | ||||||
9 | of the Internal Revenue Code) with respect to the stock | ||||||
10 | of the same person to whom the premiums and costs were | ||||||
11 | directly or indirectly paid, incurred, or accrued. The | ||||||
12 | preceding sentence does not apply to the extent that | ||||||
13 | the same dividends caused a reduction to the addition | ||||||
14 | modification required under Section 203(d)(2)(D-7) or | ||||||
15 | Section 203(d)(2)(D-8) of this Act; | ||||||
16 | (D-10) An amount equal to the credit allowable to | ||||||
17 | the taxpayer under Section 218(a) of this Act, | ||||||
18 | determined without regard to Section 218(c) of this | ||||||
19 | Act; | ||||||
20 | (D-11) For taxable years ending on or after | ||||||
21 | December 31, 2017, an amount equal to the deduction | ||||||
22 | allowed under Section 199 of the Internal Revenue Code | ||||||
23 | for the taxable year; | ||||||
24 | and by deducting from the total so obtained the following | ||||||
25 | amounts: | ||||||
26 | (E) The valuation limitation amount; |
| |||||||
| |||||||
1 | (F) An amount equal to the amount of any tax | ||||||
2 | imposed by this Act which
was refunded to the taxpayer | ||||||
3 | and included in such total for the taxable year; | ||||||
4 | (G) An amount equal to all amounts included in | ||||||
5 | taxable income as
modified by subparagraphs (A), (B), | ||||||
6 | (C) and (D) which are exempt from
taxation by this | ||||||
7 | State either by reason of its statutes or Constitution | ||||||
8 | or
by reason of
the Constitution, treaties or statutes | ||||||
9 | of the United States;
provided that, in the case of any | ||||||
10 | statute of this State that exempts income
derived from | ||||||
11 | bonds or other obligations from the tax imposed under | ||||||
12 | this Act,
the amount exempted shall be the interest net | ||||||
13 | of bond premium amortization; | ||||||
14 | (H) Any income of the partnership which | ||||||
15 | constitutes personal service
income as defined in | ||||||
16 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
17 | in effect December 31, 1981) or a reasonable allowance | ||||||
18 | for compensation
paid or accrued for services rendered | ||||||
19 | by partners to the partnership,
whichever is greater; | ||||||
20 | this subparagraph (H) is exempt from the provisions of | ||||||
21 | Section 250; | ||||||
22 | (I) An amount equal to all amounts of income | ||||||
23 | distributable to an entity
subject to the Personal | ||||||
24 | Property Tax Replacement Income Tax imposed by
| ||||||
25 | subsections (c) and (d) of Section 201 of this Act | ||||||
26 | including amounts
distributable to organizations |
| |||||||
| |||||||
1 | exempt from federal income tax by reason of
Section | ||||||
2 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
3 | (I) is exempt from the provisions of Section 250; | ||||||
4 | (J) With the exception of any amounts subtracted | ||||||
5 | under subparagraph
(G),
an amount equal to the sum of | ||||||
6 | all amounts disallowed as deductions
by (i) Sections | ||||||
7 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
8 | and all amounts of expenses allocable to
interest and | ||||||
9 | disallowed as deductions by Section 265(1) of the | ||||||
10 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
11 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
12 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
13 | Code, plus, (iii) for taxable years ending on or after | ||||||
14 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
15 | Revenue Code and, for taxable years ending on or after | ||||||
16 | December 31, 2008, any amount included in gross income | ||||||
17 | under Section 87 of the Internal Revenue Code; the | ||||||
18 | provisions of this
subparagraph are exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (K) An amount equal to those dividends included in | ||||||
21 | such total which were
paid by a corporation which | ||||||
22 | conducts business operations in a River Edge | ||||||
23 | Redevelopment Zone or zones created under the River | ||||||
24 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
25 | all of its operations
from a River Edge Redevelopment | ||||||
26 | Zone or zones. This subparagraph (K) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (L) An amount equal to any contribution made to a | ||||||
3 | job training project
established pursuant to the Real | ||||||
4 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
5 | (M) An amount equal to those dividends included in | ||||||
6 | such total
that were paid by a corporation that | ||||||
7 | conducts business operations in a
federally designated | ||||||
8 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
9 | High Impact Business located in Illinois; provided | ||||||
10 | that dividends eligible
for the deduction provided in | ||||||
11 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
12 | shall not be eligible for the deduction provided under | ||||||
13 | this
subparagraph (M); | ||||||
14 | (N) An amount equal to the amount of the deduction | ||||||
15 | used to compute the
federal income tax credit for | ||||||
16 | restoration of substantial amounts held under
claim of | ||||||
17 | right for the taxable year pursuant to Section 1341 of | ||||||
18 | the
Internal Revenue Code; | ||||||
19 | (O) For taxable years 2001 and thereafter, for the | ||||||
20 | taxable year in
which the bonus depreciation deduction
| ||||||
21 | is taken on the taxpayer's federal income tax return | ||||||
22 | under
subsection (k) of Section 168 of the Internal | ||||||
23 | Revenue Code and for each
applicable taxable year | ||||||
24 | thereafter, an amount equal to "x", where: | ||||||
25 | (1) "y" equals the amount of the depreciation | ||||||
26 | deduction taken for the
taxable year
on the |
| |||||||
| |||||||
1 | taxpayer's federal income tax return on property | ||||||
2 | for which the bonus
depreciation deduction
was | ||||||
3 | taken in any year under subsection (k) of Section | ||||||
4 | 168 of the Internal
Revenue Code, but not including | ||||||
5 | the bonus depreciation deduction; | ||||||
6 | (2) for taxable years ending on or before | ||||||
7 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
8 | and then divided by 70 (or "y"
multiplied by | ||||||
9 | 0.429); and | ||||||
10 | (3) for taxable years ending after December | ||||||
11 | 31, 2005: | ||||||
12 | (i) for property on which a bonus | ||||||
13 | depreciation deduction of 30% of the adjusted | ||||||
14 | basis was taken, "x" equals "y" multiplied by | ||||||
15 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (ii) for property on which a bonus | ||||||
18 | depreciation deduction of 50% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 1.0. | ||||||
21 | The aggregate amount deducted under this | ||||||
22 | subparagraph in all taxable
years for any one piece of | ||||||
23 | property may not exceed the amount of the bonus
| ||||||
24 | depreciation deduction
taken on that property on the | ||||||
25 | taxpayer's federal income tax return under
subsection | ||||||
26 | (k) of Section 168 of the Internal Revenue Code. This |
| |||||||
| |||||||
1 | subparagraph (O) is exempt from the provisions of | ||||||
2 | Section 250; | ||||||
3 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
4 | otherwise disposes of
property for which the taxpayer | ||||||
5 | was required in any taxable year to make an
addition | ||||||
6 | modification under subparagraph (D-5), then an amount | ||||||
7 | equal to that
addition modification. | ||||||
8 | If the taxpayer continues to own property through | ||||||
9 | the last day of the last tax year for which the | ||||||
10 | taxpayer may claim a depreciation deduction for | ||||||
11 | federal income tax purposes and for which the taxpayer | ||||||
12 | was required in any taxable year to make an addition | ||||||
13 | modification under subparagraph (D-5), then an amount | ||||||
14 | equal to that addition modification.
| ||||||
15 | The taxpayer is allowed to take the deduction under | ||||||
16 | this subparagraph
only once with respect to any one | ||||||
17 | piece of property. | ||||||
18 | This subparagraph (P) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (Q) The amount of (i) any interest income (net of | ||||||
21 | the deductions allocable thereto) taken into account | ||||||
22 | for the taxable year with respect to a transaction with | ||||||
23 | a taxpayer that is required to make an addition | ||||||
24 | modification with respect to such transaction under | ||||||
25 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
26 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
| |||||||
| |||||||
1 | the amount of such addition modification and
(ii) any | ||||||
2 | income from intangible property (net of the deductions | ||||||
3 | allocable thereto) taken into account for the taxable | ||||||
4 | year with respect to a transaction with a taxpayer that | ||||||
5 | is required to make an addition modification with | ||||||
6 | respect to such transaction under Section | ||||||
7 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
8 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
9 | addition modification. This subparagraph (Q) is exempt | ||||||
10 | from Section 250;
| ||||||
11 | (R) An amount equal to the interest income taken | ||||||
12 | into account for the taxable year (net of the | ||||||
13 | deductions allocable thereto) with respect to | ||||||
14 | transactions with (i) a foreign person who would be a | ||||||
15 | member of the taxpayer's unitary business group but for | ||||||
16 | the fact that the foreign person's business activity | ||||||
17 | outside the United States is 80% or more of that | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304, but not to exceed the | ||||||
26 | addition modification required to be made for the same |
| |||||||
| |||||||
1 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
2 | paid, accrued, or incurred, directly or indirectly, to | ||||||
3 | the same person. This subparagraph (R) is exempt from | ||||||
4 | Section 250; | ||||||
5 | (S) An amount equal to the income from intangible | ||||||
6 | property taken into account for the taxable year (net | ||||||
7 | of the deductions allocable thereto) with respect to | ||||||
8 | transactions with (i) a foreign person who would be a | ||||||
9 | member of the taxpayer's unitary business group but for | ||||||
10 | the fact that the foreign person's business activity | ||||||
11 | outside the United States is 80% or more of that | ||||||
12 | person's total business activity and (ii) for taxable | ||||||
13 | years ending on or after December 31, 2008, to a person | ||||||
14 | who would be a member of the same unitary business | ||||||
15 | group but for the fact that the person is prohibited | ||||||
16 | under Section 1501(a)(27) from being included in the | ||||||
17 | unitary business group because he or she is ordinarily | ||||||
18 | required to apportion business income under different | ||||||
19 | subsections of Section 304, but not to exceed the | ||||||
20 | addition modification required to be made for the same | ||||||
21 | taxable year under Section 203(d)(2)(D-8) for | ||||||
22 | intangible expenses and costs paid, accrued, or | ||||||
23 | incurred, directly or indirectly, to the same person. | ||||||
24 | This subparagraph (S) is exempt from Section 250; and
| ||||||
25 | (T) For taxable years ending on or after December | ||||||
26 | 31, 2011, in the case of a taxpayer who was required to |
| |||||||
| |||||||
1 | add back any insurance premiums under Section | ||||||
2 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
3 | that part of a reimbursement received from the | ||||||
4 | insurance company equal to the amount of the expense or | ||||||
5 | loss (including expenses incurred by the insurance | ||||||
6 | company) that would have been taken into account as a | ||||||
7 | deduction for federal income tax purposes if the | ||||||
8 | expense or loss had been uninsured. If a taxpayer makes | ||||||
9 | the election provided for by this subparagraph (T), the | ||||||
10 | insurer to which the premiums were paid must add back | ||||||
11 | to income the amount subtracted by the taxpayer | ||||||
12 | pursuant to this subparagraph (T). This subparagraph | ||||||
13 | (T) is exempt from the provisions of Section 250.
| ||||||
14 | (e) Gross income; adjusted gross income; taxable income. | ||||||
15 | (1) In general. Subject to the provisions of paragraph | ||||||
16 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
17 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
18 | gross income, or taxable income for
the taxable year shall | ||||||
19 | mean the amount of gross income, adjusted gross
income or | ||||||
20 | taxable income properly reportable for federal income tax
| ||||||
21 | purposes for the taxable year under the provisions of the | ||||||
22 | Internal
Revenue Code. Taxable income may be less than | ||||||
23 | zero. However, for taxable
years ending on or after | ||||||
24 | December 31, 1986, net operating loss
carryforwards from | ||||||
25 | taxable years ending prior to December 31, 1986, may not
|
| |||||||
| |||||||
1 | exceed the sum of federal taxable income for the taxable | ||||||
2 | year before net
operating loss deduction, plus the excess | ||||||
3 | of addition modifications over
subtraction modifications | ||||||
4 | for the taxable year. For taxable years ending
prior to | ||||||
5 | December 31, 1986, taxable income may never be an amount in | ||||||
6 | excess
of the net operating loss for the taxable year as | ||||||
7 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
8 | Internal Revenue Code, provided that when
taxable income of | ||||||
9 | a corporation (other than a Subchapter S corporation),
| ||||||
10 | trust, or estate is less than zero and addition | ||||||
11 | modifications, other than
those provided by subparagraph | ||||||
12 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
13 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
14 | trusts and estates, exceed subtraction modifications, an | ||||||
15 | addition
modification must be made under those | ||||||
16 | subparagraphs for any other taxable
year to which the | ||||||
17 | taxable income less than zero (net operating loss) is
| ||||||
18 | applied under Section 172 of the Internal Revenue Code or | ||||||
19 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
20 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
21 | Revenue Code. | ||||||
22 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
23 | subsection,
the taxable income properly reportable for | ||||||
24 | federal income tax purposes
shall mean: | ||||||
25 | (A) Certain life insurance companies. In the case | ||||||
26 | of a life
insurance company subject to the tax imposed |
| |||||||
| |||||||
1 | by Section 801 of the
Internal Revenue Code, life | ||||||
2 | insurance company taxable income, plus the
amount of | ||||||
3 | distribution from pre-1984 policyholder surplus | ||||||
4 | accounts as
calculated under Section 815a of the | ||||||
5 | Internal Revenue Code; | ||||||
6 | (B) Certain other insurance companies. In the case | ||||||
7 | of mutual
insurance companies subject to the tax | ||||||
8 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
9 | insurance company taxable income; | ||||||
10 | (C) Regulated investment companies. In the case of | ||||||
11 | a regulated
investment company subject to the tax | ||||||
12 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
13 | investment company taxable income; | ||||||
14 | (D) Real estate investment trusts. In the case of a | ||||||
15 | real estate
investment trust subject to the tax imposed | ||||||
16 | by Section 857 of the
Internal Revenue Code, real | ||||||
17 | estate investment trust taxable income; | ||||||
18 | (E) Consolidated corporations. In the case of a | ||||||
19 | corporation which
is a member of an affiliated group of | ||||||
20 | corporations filing a consolidated
income tax return | ||||||
21 | for the taxable year for federal income tax purposes,
| ||||||
22 | taxable income determined as if such corporation had | ||||||
23 | filed a separate
return for federal income tax purposes | ||||||
24 | for the taxable year and each
preceding taxable year | ||||||
25 | for which it was a member of an affiliated group.
For | ||||||
26 | purposes of this subparagraph, the taxpayer's separate |
| |||||||
| |||||||
1 | taxable
income shall be determined as if the election | ||||||
2 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
3 | Code had been in effect for all such years; | ||||||
4 | (F) Cooperatives. In the case of a cooperative | ||||||
5 | corporation or
association, the taxable income of such | ||||||
6 | organization determined in
accordance with the | ||||||
7 | provisions of Section 1381 through 1388 of the
Internal | ||||||
8 | Revenue Code, but without regard to the prohibition | ||||||
9 | against offsetting losses from patronage activities | ||||||
10 | against income from nonpatronage activities; except | ||||||
11 | that a cooperative corporation or association may make | ||||||
12 | an election to follow its federal income tax treatment | ||||||
13 | of patronage losses and nonpatronage losses. In the | ||||||
14 | event such election is made, such losses shall be | ||||||
15 | computed and carried over in a manner consistent with | ||||||
16 | subsection (a) of Section 207 of this Act and | ||||||
17 | apportioned by the apportionment factor reported by | ||||||
18 | the cooperative on its Illinois income tax return filed | ||||||
19 | for the taxable year in which the losses are incurred. | ||||||
20 | The election shall be effective for all taxable years | ||||||
21 | with original returns due on or after the date of the | ||||||
22 | election. In addition, the cooperative may file an | ||||||
23 | amended return or returns, as allowed under this Act, | ||||||
24 | to provide that the election shall be effective for | ||||||
25 | losses incurred or carried forward for taxable years | ||||||
26 | occurring prior to the date of the election. Once made, |
| |||||||
| |||||||
1 | the election may only be revoked upon approval of the | ||||||
2 | Director. The Department shall adopt rules setting | ||||||
3 | forth requirements for documenting the elections and | ||||||
4 | any resulting Illinois net loss and the standards to be | ||||||
5 | used by the Director in evaluating requests to revoke | ||||||
6 | elections. Public Act 96-932 is declaratory of | ||||||
7 | existing law; | ||||||
8 | (G) Subchapter S corporations. In the case of: (i) | ||||||
9 | a Subchapter S
corporation for which there is in effect | ||||||
10 | an election for the taxable year
under Section 1362 of | ||||||
11 | the Internal Revenue Code, the taxable income of such
| ||||||
12 | corporation determined in accordance with Section | ||||||
13 | 1363(b) of the Internal
Revenue Code, except that | ||||||
14 | taxable income shall take into
account those items | ||||||
15 | which are required by Section 1363(b)(1) of the
| ||||||
16 | Internal Revenue Code to be separately stated; and (ii) | ||||||
17 | a Subchapter
S corporation for which there is in effect | ||||||
18 | a federal election to opt out of
the provisions of the | ||||||
19 | Subchapter S Revision Act of 1982 and have applied
| ||||||
20 | instead the prior federal Subchapter S rules as in | ||||||
21 | effect on July 1, 1982,
the taxable income of such | ||||||
22 | corporation determined in accordance with the
federal | ||||||
23 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
24 | (H) Partnerships. In the case of a partnership, | ||||||
25 | taxable income
determined in accordance with Section | ||||||
26 | 703 of the Internal Revenue Code,
except that taxable |
| |||||||
| |||||||
1 | income shall take into account those items which are
| ||||||
2 | required by Section 703(a)(1) to be separately stated | ||||||
3 | but which would be
taken into account by an individual | ||||||
4 | in calculating his taxable income. | ||||||
5 | (3) Recapture of business expenses on disposition of | ||||||
6 | asset or business. Notwithstanding any other law to the | ||||||
7 | contrary, if in prior years income from an asset or | ||||||
8 | business has been classified as business income and in a | ||||||
9 | later year is demonstrated to be non-business income, then | ||||||
10 | all expenses, without limitation, deducted in such later | ||||||
11 | year and in the 2 immediately preceding taxable years | ||||||
12 | related to that asset or business that generated the | ||||||
13 | non-business income shall be added back and recaptured as | ||||||
14 | business income in the year of the disposition of the asset | ||||||
15 | or business. Such amount shall be apportioned to Illinois | ||||||
16 | using the greater of the apportionment fraction computed | ||||||
17 | for the business under Section 304 of this Act for the | ||||||
18 | taxable year or the average of the apportionment fractions | ||||||
19 | computed for the business under Section 304 of this Act for | ||||||
20 | the taxable year and for the 2 immediately preceding | ||||||
21 | taxable years.
| ||||||
22 | (f) Valuation limitation amount. | ||||||
23 | (1) In general. The valuation limitation amount | ||||||
24 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
25 | (d)(2) (E) is an amount equal to: |
| |||||||
| |||||||
1 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
2 | amounts (to the
extent consisting of gain reportable | ||||||
3 | under the provisions of Section
1245 or 1250 of the | ||||||
4 | Internal Revenue Code) for all property in respect
of | ||||||
5 | which such gain was reported for the taxable year; plus | ||||||
6 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
7 | 1969 appreciation
amounts (to the extent consisting of | ||||||
8 | capital gain) for all property in
respect of which such | ||||||
9 | gain was reported for federal income tax purposes
for | ||||||
10 | the taxable year, or (ii) the net capital gain for the | ||||||
11 | taxable year,
reduced in either case by any amount of | ||||||
12 | such gain included in the amount
determined under | ||||||
13 | subsection (a) (2) (F) or (c) (2) (H). | ||||||
14 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
15 | (A) If the fair market value of property referred | ||||||
16 | to in paragraph
(1) was readily ascertainable on August | ||||||
17 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
18 | such property is the lesser of (i) the excess of
such | ||||||
19 | fair market value over the taxpayer's basis (for | ||||||
20 | determining gain)
for such property on that date | ||||||
21 | (determined under the Internal Revenue
Code as in | ||||||
22 | effect on that date), or (ii) the total gain realized | ||||||
23 | and
reportable for federal income tax purposes in | ||||||
24 | respect of the sale,
exchange or other disposition of | ||||||
25 | such property. | ||||||
26 | (B) If the fair market value of property referred |
| |||||||
| |||||||
1 | to in paragraph
(1) was not readily ascertainable on | ||||||
2 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
3 | amount for such property is that amount which bears
the | ||||||
4 | same ratio to the total gain reported in respect of the | ||||||
5 | property for
federal income tax purposes for the | ||||||
6 | taxable year, as the number of full
calendar months in | ||||||
7 | that part of the taxpayer's holding period for the
| ||||||
8 | property ending July 31, 1969 bears to the number of | ||||||
9 | full calendar
months in the taxpayer's entire holding | ||||||
10 | period for the
property. | ||||||
11 | (C) The Department shall prescribe such | ||||||
12 | regulations as may be
necessary to carry out the | ||||||
13 | purposes of this paragraph.
| ||||||
14 | (g) Double deductions. Unless specifically provided | ||||||
15 | otherwise, nothing
in this Section shall permit the same item | ||||||
16 | to be deducted more than once.
| ||||||
17 | (h) Legislative intention. Except as expressly provided by | ||||||
18 | this
Section there shall be no modifications or limitations on | ||||||
19 | the amounts
of income, gain, loss or deduction taken into | ||||||
20 | account in determining
gross income, adjusted gross income or | ||||||
21 | taxable income for federal income
tax purposes for the taxable | ||||||
22 | year, or in the amount of such items
entering into the | ||||||
23 | computation of base income and net income under this
Act for | ||||||
24 | such taxable year, whether in respect of property values as of
|
| |||||||
| |||||||
1 | August 1, 1969 or otherwise. | ||||||
2 | (Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||||||
3 | eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||||||
4 | 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||||||
5 | 6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||||||
6 | eff. 8-23-11; 97-905, eff. 8-7-12.)
| ||||||
7 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||||||
8 | Sec. 304. Business income of persons other than residents.
| ||||||
9 | (a) In general. The business income of a person other than | ||||||
10 | a
resident shall be allocated to this State if such person's | ||||||
11 | business
income is derived solely from this State. If a person | ||||||
12 | other than a
resident derives business income from this State | ||||||
13 | and one or more other
states, then, for tax years ending on or | ||||||
14 | before December 30, 1998, and for tax years ending on or after | ||||||
15 | December 31, 2017, and
except as otherwise provided by this | ||||||
16 | Section, such
person's business income shall be apportioned to | ||||||
17 | this State by
multiplying the income by a fraction, the | ||||||
18 | numerator of which is the sum
of the property factor (if any), | ||||||
19 | the payroll factor (if any) and 200% of the
sales factor (if | ||||||
20 | any), and the denominator of which is 4 reduced by the
number | ||||||
21 | of factors other than the sales factor which have a denominator
| ||||||
22 | of zero and by an additional 2 if the sales factor has a | ||||||
23 | denominator of zero.
For tax years ending on or after December | ||||||
24 | 31, 1998, and ending prior to December 31, 2017, and except as | ||||||
25 | otherwise
provided by this Section, persons other than
|
| |||||||
| |||||||
1 | residents who derive business income from this State and one or | ||||||
2 | more other
states shall compute their apportionment factor by | ||||||
3 | weighting their property,
payroll, and sales factors as | ||||||
4 | provided in
subsection (h) of this Section.
| ||||||
5 | (1) Property factor.
| ||||||
6 | (A) The property factor is a fraction, the numerator of | ||||||
7 | which is the
average value of the person's real and | ||||||
8 | tangible personal property owned
or rented and used in the | ||||||
9 | trade or business in this State during the
taxable year and | ||||||
10 | the denominator of which is the average value of all
the | ||||||
11 | person's real and tangible personal property owned or | ||||||
12 | rented and
used in the trade or business during the taxable | ||||||
13 | year.
| ||||||
14 | (B) Property owned by the person is valued at its | ||||||
15 | original cost.
Property rented by the person is valued at 8 | ||||||
16 | times the net annual rental
rate. Net annual rental rate is | ||||||
17 | the annual rental rate paid by the
person less any annual | ||||||
18 | rental rate received by the person from
sub-rentals.
| ||||||
19 | (C) The average value of property shall be determined | ||||||
20 | by averaging
the values at the beginning and ending of the | ||||||
21 | taxable year but the
Director may require the averaging of | ||||||
22 | monthly values during the taxable
year if reasonably | ||||||
23 | required to reflect properly the average value of the
| ||||||
24 | person's property.
| ||||||
25 | (2) Payroll factor.
| ||||||
26 | (A) The payroll factor is a fraction, the numerator of |
| |||||||
| |||||||
1 | which is the
total amount paid in this State during the | ||||||
2 | taxable year by the person
for compensation, and the | ||||||
3 | denominator of which is the total compensation
paid | ||||||
4 | everywhere during the taxable year.
| ||||||
5 | (B) Compensation is paid in this State if:
| ||||||
6 | (i) The individual's service is performed entirely | ||||||
7 | within this
State;
| ||||||
8 | (ii) The individual's service is performed both | ||||||
9 | within and without
this State, but the service | ||||||
10 | performed without this State is incidental
to the | ||||||
11 | individual's service performed within this State; or
| ||||||
12 | (iii) Some of the service is performed within this | ||||||
13 | State and either
the base of operations, or if there is | ||||||
14 | no base of operations, the place
from which the service | ||||||
15 | is directed or controlled is within this State,
or the | ||||||
16 | base of operations or the place from which the service | ||||||
17 | is
directed or controlled is not in any state in which | ||||||
18 | some part of the
service is performed, but the | ||||||
19 | individual's residence is in this State.
| ||||||
20 | (iv) Compensation paid to nonresident professional | ||||||
21 | athletes. | ||||||
22 | (a) General. The Illinois source income of a | ||||||
23 | nonresident individual who is a member of a | ||||||
24 | professional athletic team includes the portion of the | ||||||
25 | individual's total compensation for services performed | ||||||
26 | as a member of a professional athletic team during the |
| |||||||
| |||||||
1 | taxable year which the number of duty days spent within | ||||||
2 | this State performing services for the team in any | ||||||
3 | manner during the taxable year bears to the total | ||||||
4 | number of duty days spent both within and without this | ||||||
5 | State during the taxable year. | ||||||
6 | (b) Travel days. Travel days that do not involve | ||||||
7 | either a game, practice, team meeting, or other similar | ||||||
8 | team event are not considered duty days spent in this | ||||||
9 | State. However, such travel days are considered in the | ||||||
10 | total duty days spent both within and without this | ||||||
11 | State. | ||||||
12 | (c) Definitions. For purposes of this subpart | ||||||
13 | (iv): | ||||||
14 | (1) The term "professional athletic team" | ||||||
15 | includes, but is not limited to, any professional | ||||||
16 | baseball, basketball, football, soccer, or hockey | ||||||
17 | team. | ||||||
18 | (2) The term "member of a professional | ||||||
19 | athletic team" includes those employees who are | ||||||
20 | active players, players on the disabled list, and | ||||||
21 | any other persons required to travel and who travel | ||||||
22 | with and perform services on behalf of a | ||||||
23 | professional athletic team on a regular basis. | ||||||
24 | This includes, but is not limited to, coaches, | ||||||
25 | managers, and trainers. | ||||||
26 | (3) Except as provided in items (C) and (D) of |
| |||||||
| |||||||
1 | this subpart (3), the term "duty days" means all | ||||||
2 | days during the taxable year from the beginning of | ||||||
3 | the professional athletic team's official | ||||||
4 | pre-season training period through the last game | ||||||
5 | in which the team competes or is scheduled to | ||||||
6 | compete. Duty days shall be counted for the year in | ||||||
7 | which they occur, including where a team's | ||||||
8 | official pre-season training period through the | ||||||
9 | last game in which the team competes or is | ||||||
10 | scheduled to compete, occurs during more than one | ||||||
11 | tax year. | ||||||
12 | (A) Duty days shall also include days on | ||||||
13 | which a member of a professional athletic team | ||||||
14 | performs service for a team on a date that does | ||||||
15 | not fall within the foregoing period (e.g., | ||||||
16 | participation in instructional leagues, the | ||||||
17 | "All Star Game", or promotional "caravans"). | ||||||
18 | Performing a service for a professional | ||||||
19 | athletic team includes conducting training and | ||||||
20 | rehabilitation activities, when such | ||||||
21 | activities are conducted at team facilities. | ||||||
22 | (B) Also included in duty days are game | ||||||
23 | days, practice days, days spent at team | ||||||
24 | meetings, promotional caravans, preseason | ||||||
25 | training camps, and days served with the team | ||||||
26 | through all post-season games in which the team |
| |||||||
| |||||||
1 | competes or is scheduled to compete. | ||||||
2 | (C) Duty days for any person who joins a | ||||||
3 | team during the period from the beginning of | ||||||
4 | the professional athletic team's official | ||||||
5 | pre-season training period through the last | ||||||
6 | game in which the team competes, or is | ||||||
7 | scheduled to compete, shall begin on the day | ||||||
8 | that person joins the team. Conversely, duty | ||||||
9 | days for any person who leaves a team during | ||||||
10 | this period shall end on the day that person | ||||||
11 | leaves the team. Where a person switches teams | ||||||
12 | during a taxable year, a separate duty-day | ||||||
13 | calculation shall be made for the period the | ||||||
14 | person was with each team. | ||||||
15 | (D) Days for which a member of a | ||||||
16 | professional athletic team is not compensated | ||||||
17 | and is not performing services for the team in | ||||||
18 | any manner, including days when such member of | ||||||
19 | a professional athletic team has been | ||||||
20 | suspended without pay and prohibited from | ||||||
21 | performing any services for the team, shall not | ||||||
22 | be treated as duty days. | ||||||
23 | (E) Days for which a member of a | ||||||
24 | professional athletic team is on the disabled | ||||||
25 | list and does not conduct rehabilitation | ||||||
26 | activities at facilities of the team, and is |
| |||||||
| |||||||
1 | not otherwise performing services for the team | ||||||
2 | in Illinois, shall not be considered duty days | ||||||
3 | spent in this State. All days on the disabled | ||||||
4 | list, however, are considered to be included in | ||||||
5 | total duty days spent both within and without | ||||||
6 | this State. | ||||||
7 | (4) The term "total compensation for services | ||||||
8 | performed as a member of a professional athletic | ||||||
9 | team" means the total compensation received during | ||||||
10 | the taxable year for services performed: | ||||||
11 | (A) from the beginning of the official | ||||||
12 | pre-season training period through the last | ||||||
13 | game in which the team competes or is scheduled | ||||||
14 | to compete during that taxable year; and | ||||||
15 | (B) during the taxable year on a date which | ||||||
16 | does not fall within the foregoing period | ||||||
17 | (e.g., participation in instructional leagues, | ||||||
18 | the "All Star Game", or promotional caravans). | ||||||
19 | This compensation shall include, but is not | ||||||
20 | limited to, salaries, wages, bonuses as described | ||||||
21 | in this subpart, and any other type of compensation | ||||||
22 | paid during the taxable year to a member of a | ||||||
23 | professional athletic team for services performed | ||||||
24 | in that year. This compensation does not include | ||||||
25 | strike benefits, severance pay, termination pay, | ||||||
26 | contract or option year buy-out payments, |
| |||||||
| |||||||
1 | expansion or relocation payments, or any other | ||||||
2 | payments not related to services performed for the | ||||||
3 | team. | ||||||
4 | For purposes of this subparagraph, "bonuses" | ||||||
5 | included in "total compensation for services | ||||||
6 | performed as a member of a professional athletic | ||||||
7 | team" subject to the allocation described in | ||||||
8 | Section 302(c)(1) are: bonuses earned as a result | ||||||
9 | of play (i.e., performance bonuses) during the | ||||||
10 | season, including bonuses paid for championship, | ||||||
11 | playoff or "bowl" games played by a team, or for | ||||||
12 | selection to all-star league or other honorary | ||||||
13 | positions; and bonuses paid for signing a | ||||||
14 | contract, unless the payment of the signing bonus | ||||||
15 | is not conditional upon the signee playing any | ||||||
16 | games for the team or performing any subsequent | ||||||
17 | services for the team or even making the team, the | ||||||
18 | signing bonus is payable separately from the | ||||||
19 | salary and any other compensation, and the signing | ||||||
20 | bonus is nonrefundable.
| ||||||
21 | (3) Sales factor.
| ||||||
22 | (A) The sales factor is a fraction, the numerator of | ||||||
23 | which is the
total sales of the person in this State during | ||||||
24 | the taxable year, and the
denominator of which is the total | ||||||
25 | sales of the person everywhere during
the taxable year.
| ||||||
26 | (B) Sales of tangible personal property are in this |
| |||||||
| |||||||
1 | State if:
| ||||||
2 | (i) The property is delivered or shipped to a | ||||||
3 | purchaser, other than
the United States government, | ||||||
4 | within this State regardless of the f. o.
b. point or | ||||||
5 | other conditions of the sale; or
| ||||||
6 | (ii) The property is shipped from an office, store, | ||||||
7 | warehouse,
factory or other place of storage in this | ||||||
8 | State and either the purchaser
is the United States | ||||||
9 | government or the person is not taxable in the
state of | ||||||
10 | the purchaser; provided, however, that premises owned | ||||||
11 | or leased
by a person who has independently contracted | ||||||
12 | with the seller for the printing
of newspapers, | ||||||
13 | periodicals or books shall not be deemed to be an | ||||||
14 | office,
store, warehouse, factory or other place of | ||||||
15 | storage for purposes of this
Section.
Sales of tangible | ||||||
16 | personal property are not in this State if the
seller | ||||||
17 | and purchaser would be members of the same unitary | ||||||
18 | business group
but for the fact that either the seller | ||||||
19 | or purchaser is a person with 80%
or more of total | ||||||
20 | business activity outside of the United States and the
| ||||||
21 | property is purchased for resale.
| ||||||
22 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
23 | items of intangible
personal property.
| ||||||
24 | (i) Gross receipts from the licensing, sale, or | ||||||
25 | other disposition of a
patent, copyright, trademark, | ||||||
26 | or similar item of intangible personal property, other |
| |||||||
| |||||||
1 | than gross receipts governed by paragraph (B-7) of this | ||||||
2 | item (3),
are in this State to the extent the item is | ||||||
3 | utilized in this State during the
year the gross | ||||||
4 | receipts are included in gross income.
| ||||||
5 | (ii) Place of utilization.
| ||||||
6 | (I) A patent is utilized in a state to the | ||||||
7 | extent that it is employed
in production, | ||||||
8 | fabrication, manufacturing, or other processing in | ||||||
9 | the state or
to the extent that a patented product | ||||||
10 | is produced in the state. If a patent is
utilized | ||||||
11 | in
more than one state, the extent to which it is | ||||||
12 | utilized in any one state shall
be a fraction equal | ||||||
13 | to the gross receipts of the licensee or purchaser | ||||||
14 | from
sales or leases of items produced, | ||||||
15 | fabricated, manufactured, or processed
within that | ||||||
16 | state using the patent and of patented items | ||||||
17 | produced within that
state, divided by the total of | ||||||
18 | such gross receipts for all states in which the
| ||||||
19 | patent is utilized.
| ||||||
20 | (II) A copyright is utilized in a state to the | ||||||
21 | extent that printing or
other publication | ||||||
22 | originates in the state. If a copyright is utilized | ||||||
23 | in more
than one state, the extent to which it is | ||||||
24 | utilized in any one state shall be a
fraction equal | ||||||
25 | to the gross receipts from sales or licenses of | ||||||
26 | materials
printed or published in that state |
| |||||||
| |||||||
1 | divided by the total of such gross receipts
for all | ||||||
2 | states in which the copyright is utilized.
| ||||||
3 | (III) Trademarks and other items of intangible | ||||||
4 | personal property
governed by this paragraph (B-1) | ||||||
5 | are utilized in the state in which the
commercial | ||||||
6 | domicile of the licensee or purchaser is located.
| ||||||
7 | (iii) If the state of utilization of an item of | ||||||
8 | property governed by
this paragraph (B-1) cannot be | ||||||
9 | determined from the taxpayer's books and
records or | ||||||
10 | from the books and records of any person related to the | ||||||
11 | taxpayer
within the meaning of Section 267(b) of the | ||||||
12 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
13 | receipts attributable to that item shall be excluded | ||||||
14 | from both the numerator
and the denominator of the | ||||||
15 | sales factor.
| ||||||
16 | (B-2) Gross receipts from the license, sale, or other | ||||||
17 | disposition of
patents, copyrights, trademarks, and | ||||||
18 | similar items of intangible personal
property, other than | ||||||
19 | gross receipts governed by paragraph (B-7) of this item | ||||||
20 | (3), may be included in the numerator or denominator of the | ||||||
21 | sales factor
only if gross receipts from licenses, sales, | ||||||
22 | or other disposition of such items
comprise more than 50% | ||||||
23 | of the taxpayer's total gross receipts included in gross
| ||||||
24 | income during the tax year and during each of the 2 | ||||||
25 | immediately preceding tax
years; provided that, when a | ||||||
26 | taxpayer is a member of a unitary business group,
such |
| |||||||
| |||||||
1 | determination shall be made on the basis of the gross | ||||||
2 | receipts of the
entire unitary business group.
| ||||||
3 | (B-5) For taxable years ending on or after December 31, | ||||||
4 | 2008, except as provided in subsections (ii) through (vii), | ||||||
5 | receipts from the sale of telecommunications service or | ||||||
6 | mobile telecommunications service are in this State if the | ||||||
7 | customer's service address is in this State. | ||||||
8 | (i) For purposes of this subparagraph (B-5), the | ||||||
9 | following terms have the following meanings: | ||||||
10 | "Ancillary services" means services that are | ||||||
11 | associated with or incidental to the provision of | ||||||
12 | "telecommunications services", including but not | ||||||
13 | limited to "detailed telecommunications billing", | ||||||
14 | "directory assistance", "vertical service", and "voice | ||||||
15 | mail services". | ||||||
16 | "Air-to-Ground Radiotelephone service" means a | ||||||
17 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
18 | in which common carriers are authorized to offer and | ||||||
19 | provide radio telecommunications service for hire to | ||||||
20 | subscribers in aircraft. | ||||||
21 | "Call-by-call Basis" means any method of charging | ||||||
22 | for telecommunications services where the price is | ||||||
23 | measured by individual calls. | ||||||
24 | "Communications Channel" means a physical or | ||||||
25 | virtual path of communications over which signals are | ||||||
26 | transmitted between or among customer channel |
| |||||||
| |||||||
1 | termination points. | ||||||
2 | "Conference bridging service" means an "ancillary | ||||||
3 | service" that links two or more participants of an | ||||||
4 | audio or video conference call and may include the | ||||||
5 | provision of a telephone number. "Conference bridging | ||||||
6 | service" does not include the "telecommunications | ||||||
7 | services" used to reach the conference bridge. | ||||||
8 | "Customer Channel Termination Point" means the | ||||||
9 | location where the customer either inputs or receives | ||||||
10 | the communications. | ||||||
11 | "Detailed telecommunications billing service" | ||||||
12 | means an "ancillary service" of separately stating | ||||||
13 | information pertaining to individual calls on a | ||||||
14 | customer's billing statement. | ||||||
15 | "Directory assistance" means an "ancillary | ||||||
16 | service" of providing telephone number information, | ||||||
17 | and/or address information. | ||||||
18 | "Home service provider" means the facilities based | ||||||
19 | carrier or reseller with which the customer contracts | ||||||
20 | for the provision of mobile telecommunications | ||||||
21 | services. | ||||||
22 | "Mobile telecommunications service" means | ||||||
23 | commercial mobile radio service, as defined in Section | ||||||
24 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
25 | in effect on June 1, 1999. | ||||||
26 | "Place of primary use" means the street address |
| |||||||
| |||||||
1 | representative of where the customer's use of the | ||||||
2 | telecommunications service primarily occurs, which | ||||||
3 | must be the residential street address or the primary | ||||||
4 | business street address of the customer. In the case of | ||||||
5 | mobile telecommunications services, "place of primary | ||||||
6 | use" must be within the licensed service area of the | ||||||
7 | home service provider. | ||||||
8 | "Post-paid telecommunication service" means the | ||||||
9 | telecommunications service obtained by making a | ||||||
10 | payment on a call-by-call basis either through the use | ||||||
11 | of a credit card or payment mechanism such as a bank | ||||||
12 | card, travel card, credit card, or debit card, or by | ||||||
13 | charge made to a telephone number which is not | ||||||
14 | associated with the origination or termination of the | ||||||
15 | telecommunications service. A post-paid calling | ||||||
16 | service includes telecommunications service, except a | ||||||
17 | prepaid wireless calling service, that would be a | ||||||
18 | prepaid calling service except it is not exclusively a | ||||||
19 | telecommunication service. | ||||||
20 | "Prepaid telecommunication service" means the | ||||||
21 | right to access exclusively telecommunications | ||||||
22 | services, which must be paid for in advance and which | ||||||
23 | enables the origination of calls using an access number | ||||||
24 | or authorization code, whether manually or | ||||||
25 | electronically dialed, and that is sold in | ||||||
26 | predetermined units or dollars of which the number |
| |||||||
| |||||||
1 | declines with use in a known amount. | ||||||
2 | "Prepaid Mobile telecommunication service" means a | ||||||
3 | telecommunications service that provides the right to | ||||||
4 | utilize mobile wireless service as well as other | ||||||
5 | non-telecommunication services, including but not | ||||||
6 | limited to ancillary services, which must be paid for | ||||||
7 | in advance that is sold in predetermined units or | ||||||
8 | dollars of which the number declines with use in a | ||||||
9 | known amount. | ||||||
10 | "Private communication service" means a | ||||||
11 | telecommunication service that entitles the customer | ||||||
12 | to exclusive or priority use of a communications | ||||||
13 | channel or group of channels between or among | ||||||
14 | termination points, regardless of the manner in which | ||||||
15 | such channel or channels are connected, and includes | ||||||
16 | switching capacity, extension lines, stations, and any | ||||||
17 | other associated services that are provided in | ||||||
18 | connection with the use of such channel or channels. | ||||||
19 | "Service address" means: | ||||||
20 | (a) The location of the telecommunications | ||||||
21 | equipment to which a customer's call is charged and | ||||||
22 | from which the call originates or terminates, | ||||||
23 | regardless of where the call is billed or paid; | ||||||
24 | (b) If the location in line (a) is not known, | ||||||
25 | service address means the origination point of the | ||||||
26 | signal of the telecommunications services first |
| |||||||
| |||||||
1 | identified by either the seller's | ||||||
2 | telecommunications system or in information | ||||||
3 | received by the seller from its service provider | ||||||
4 | where the system used to transport such signals is | ||||||
5 | not that of the seller; and | ||||||
6 | (c) If the locations in line (a) and line (b) | ||||||
7 | are not known, the service address means the | ||||||
8 | location of the customer's place of primary use. | ||||||
9 | "Telecommunications service" means the electronic | ||||||
10 | transmission, conveyance, or routing of voice, data, | ||||||
11 | audio, video, or any other information or signals to a | ||||||
12 | point, or between or among points. The term | ||||||
13 | "telecommunications service" includes such | ||||||
14 | transmission, conveyance, or routing in which computer | ||||||
15 | processing applications are used to act on the form, | ||||||
16 | code or protocol of the content for purposes of | ||||||
17 | transmission, conveyance or routing without regard to | ||||||
18 | whether such service is referred to as voice over | ||||||
19 | Internet protocol services or is classified by the | ||||||
20 | Federal Communications Commission as enhanced or value | ||||||
21 | added. "Telecommunications service" does not include: | ||||||
22 | (a) Data processing and information services | ||||||
23 | that allow data to be generated, acquired, stored, | ||||||
24 | processed, or retrieved and delivered by an | ||||||
25 | electronic transmission to a purchaser when such | ||||||
26 | purchaser's primary purpose for the underlying |
| |||||||
| |||||||
1 | transaction is the processed data or information; | ||||||
2 | (b) Installation or maintenance of wiring or | ||||||
3 | equipment on a customer's premises; | ||||||
4 | (c) Tangible personal property; | ||||||
5 | (d) Advertising, including but not limited to | ||||||
6 | directory advertising ; . | ||||||
7 | (e) Billing and collection services provided | ||||||
8 | to third parties; | ||||||
9 | (f) Internet access service; | ||||||
10 | (g) Radio and television audio and video | ||||||
11 | programming services, regardless of the medium, | ||||||
12 | including the furnishing of transmission, | ||||||
13 | conveyance and routing of such services by the | ||||||
14 | programming service provider. Radio and television | ||||||
15 | audio and video programming services shall include | ||||||
16 | but not be limited to cable service as defined in | ||||||
17 | 47 USC 522(6) and audio and video programming | ||||||
18 | services delivered by commercial mobile radio | ||||||
19 | service providers, as defined in 47 CFR 20.3; | ||||||
20 | (h) "Ancillary services"; or | ||||||
21 | (i) Digital products "delivered | ||||||
22 | electronically", including but not limited to | ||||||
23 | software, music, video, reading materials or ring | ||||||
24 | tones. | ||||||
25 | "Vertical service" means an "ancillary service" | ||||||
26 | that is offered in connection with one or more |
| |||||||
| |||||||
1 | "telecommunications services", which offers advanced | ||||||
2 | calling features that allow customers to identify | ||||||
3 | callers and to manage multiple calls and call | ||||||
4 | connections, including "conference bridging services". | ||||||
5 | "Voice mail service" means an "ancillary service" | ||||||
6 | that enables the customer to store, send or receive | ||||||
7 | recorded messages. "Voice mail service" does not | ||||||
8 | include any "vertical services" that the customer may | ||||||
9 | be required to have in order to utilize the "voice mail | ||||||
10 | service". | ||||||
11 | (ii) Receipts from the sale of telecommunications | ||||||
12 | service sold on an individual call-by-call basis are in | ||||||
13 | this State if either of the following applies: | ||||||
14 | (a) The call both originates and terminates in | ||||||
15 | this State. | ||||||
16 | (b) The call either originates or terminates | ||||||
17 | in this State and the service address is located in | ||||||
18 | this State. | ||||||
19 | (iii) Receipts from the sale of postpaid | ||||||
20 | telecommunications service at retail are in this State | ||||||
21 | if the origination point of the telecommunication | ||||||
22 | signal, as first identified by the service provider's | ||||||
23 | telecommunication system or as identified by | ||||||
24 | information received by the seller from its service | ||||||
25 | provider if the system used to transport | ||||||
26 | telecommunication signals is not the seller's, is |
| |||||||
| |||||||
1 | located in this State. | ||||||
2 | (iv) Receipts from the sale of prepaid | ||||||
3 | telecommunications service or prepaid mobile | ||||||
4 | telecommunications service at retail are in this State | ||||||
5 | if the purchaser obtains the prepaid card or similar | ||||||
6 | means of conveyance at a location in this State. | ||||||
7 | Receipts from recharging a prepaid telecommunications | ||||||
8 | service or mobile telecommunications service is in | ||||||
9 | this State if the purchaser's billing information | ||||||
10 | indicates a location in this State. | ||||||
11 | (v) Receipts from the sale of private | ||||||
12 | communication services are in this State as follows: | ||||||
13 | (a) 100% of receipts from charges imposed at | ||||||
14 | each channel termination point in this State. | ||||||
15 | (b) 100% of receipts from charges for the total | ||||||
16 | channel mileage between each channel termination | ||||||
17 | point in this State. | ||||||
18 | (c) 50% of the total receipts from charges for | ||||||
19 | service segments when those segments are between 2 | ||||||
20 | customer channel termination points, 1 of which is | ||||||
21 | located in this State and the other is located | ||||||
22 | outside of this State, which segments are | ||||||
23 | separately charged. | ||||||
24 | (d) The receipts from charges for service | ||||||
25 | segments with a channel termination point located | ||||||
26 | in this State and in two or more other states, and |
| |||||||
| |||||||
1 | which segments are not separately billed, are in | ||||||
2 | this State based on a percentage determined by | ||||||
3 | dividing the number of customer channel | ||||||
4 | termination points in this State by the total | ||||||
5 | number of customer channel termination points. | ||||||
6 | (vi) Receipts from charges for ancillary services | ||||||
7 | for telecommunications service sold to customers at | ||||||
8 | retail are in this State if the customer's primary | ||||||
9 | place of use of telecommunications services associated | ||||||
10 | with those ancillary services is in this State. If the | ||||||
11 | seller of those ancillary services cannot determine | ||||||
12 | where the associated telecommunications are located, | ||||||
13 | then the ancillary services shall be based on the | ||||||
14 | location of the purchaser. | ||||||
15 | (vii) Receipts to access a carrier's network or | ||||||
16 | from the sale of telecommunication services or | ||||||
17 | ancillary services for resale are in this State as | ||||||
18 | follows: | ||||||
19 | (a) 100% of the receipts from access fees | ||||||
20 | attributable to intrastate telecommunications | ||||||
21 | service that both originates and terminates in | ||||||
22 | this State. | ||||||
23 | (b) 50% of the receipts from access fees | ||||||
24 | attributable to interstate telecommunications | ||||||
25 | service if the interstate call either originates | ||||||
26 | or terminates in this State. |
| |||||||
| |||||||
1 | (c) 100% of the receipts from interstate end | ||||||
2 | user access line charges, if the customer's | ||||||
3 | service address is in this State. As used in this | ||||||
4 | subdivision, "interstate end user access line | ||||||
5 | charges" includes, but is not limited to, the | ||||||
6 | surcharge approved by the federal communications | ||||||
7 | commission and levied pursuant to 47 CFR 69. | ||||||
8 | (d) Gross receipts from sales of | ||||||
9 | telecommunication services or from ancillary | ||||||
10 | services for telecommunications services sold to | ||||||
11 | other telecommunication service providers for | ||||||
12 | resale shall be sourced to this State using the | ||||||
13 | apportionment concepts used for non-resale | ||||||
14 | receipts of telecommunications services if the | ||||||
15 | information is readily available to make that | ||||||
16 | determination. If the information is not readily | ||||||
17 | available, then the taxpayer may use any other | ||||||
18 | reasonable and consistent method. | ||||||
19 | (B-7) For taxable years ending on or after December 31, | ||||||
20 | 2008, receipts from the sale of broadcasting services are | ||||||
21 | in this State if the broadcasting services are received in | ||||||
22 | this State. For purposes of this paragraph (B-7), the | ||||||
23 | following terms have the following meanings: | ||||||
24 | "Advertising revenue" means consideration received | ||||||
25 | by the taxpayer in exchange for broadcasting services | ||||||
26 | or allowing the broadcasting of commercials or |
| |||||||
| |||||||
1 | announcements in connection with the broadcasting of | ||||||
2 | film or radio programming, from sponsorships of the | ||||||
3 | programming, or from product placements in the | ||||||
4 | programming. | ||||||
5 | "Audience factor" means the ratio that the | ||||||
6 | audience or subscribers located in this State of a | ||||||
7 | station, a network, or a cable system bears to the | ||||||
8 | total audience or total subscribers for that station, | ||||||
9 | network, or cable system. The audience factor for film | ||||||
10 | or radio programming shall be determined by reference | ||||||
11 | to the books and records of the taxpayer or by | ||||||
12 | reference to published rating statistics provided the | ||||||
13 | method used by the taxpayer is consistently used from | ||||||
14 | year to year for this purpose and fairly represents the | ||||||
15 | taxpayer's activity in this State. | ||||||
16 | "Broadcast" or "broadcasting" or "broadcasting | ||||||
17 | services" means the transmission or provision of film | ||||||
18 | or radio programming, whether through the public | ||||||
19 | airwaves, by cable, by direct or indirect satellite | ||||||
20 | transmission, or by any other means of communication, | ||||||
21 | either through a station, a network, or a cable system. | ||||||
22 | "Film" or "film programming" means the broadcast | ||||||
23 | on television of any and all performances, events, or | ||||||
24 | productions, including but not limited to news, | ||||||
25 | sporting events, plays, stories, or other literary, | ||||||
26 | commercial, educational, or artistic works, either |
| |||||||
| |||||||
1 | live or through the use of video tape, disc, or any | ||||||
2 | other type of format or medium. Each episode of a | ||||||
3 | series of films produced for television shall | ||||||
4 | constitute separate "film" notwithstanding that the | ||||||
5 | series relates to the same principal subject and is | ||||||
6 | produced during one or more tax periods. | ||||||
7 | "Radio" or "radio programming" means the broadcast | ||||||
8 | on radio of any and all performances, events, or | ||||||
9 | productions, including but not limited to news, | ||||||
10 | sporting events, plays, stories, or other literary, | ||||||
11 | commercial, educational, or artistic works, either | ||||||
12 | live or through the use of an audio tape, disc, or any | ||||||
13 | other format or medium. Each episode in a series of | ||||||
14 | radio programming produced for radio broadcast shall | ||||||
15 | constitute a separate "radio programming" | ||||||
16 | notwithstanding that the series relates to the same | ||||||
17 | principal subject and is produced during one or more | ||||||
18 | tax periods. | ||||||
19 | (i) In the case of advertising revenue from | ||||||
20 | broadcasting, the customer is the advertiser and | ||||||
21 | the service is received in this State if the | ||||||
22 | commercial domicile of the advertiser is in this | ||||||
23 | State. | ||||||
24 | (ii) In the case where film or radio | ||||||
25 | programming is broadcast by a station, a network, | ||||||
26 | or a cable system for a fee or other remuneration |
| |||||||
| |||||||
1 | received from the recipient of the broadcast, the | ||||||
2 | portion of the service that is received in this | ||||||
3 | State is measured by the portion of the recipients | ||||||
4 | of the broadcast located in this State. | ||||||
5 | Accordingly, the fee or other remuneration for | ||||||
6 | such service that is included in the Illinois | ||||||
7 | numerator of the sales factor is the total of those | ||||||
8 | fees or other remuneration received from | ||||||
9 | recipients in Illinois. For purposes of this | ||||||
10 | paragraph, a taxpayer may determine the location | ||||||
11 | of the recipients of its broadcast using the | ||||||
12 | address of the recipient shown in its contracts | ||||||
13 | with the recipient or using the billing address of | ||||||
14 | the recipient in the taxpayer's records. | ||||||
15 | (iii) In the case where film or radio | ||||||
16 | programming is broadcast by a station, a network, | ||||||
17 | or a cable system for a fee or other remuneration | ||||||
18 | from the person providing the programming, the | ||||||
19 | portion of the broadcast service that is received | ||||||
20 | by such station, network, or cable system in this | ||||||
21 | State is measured by the portion of recipients of | ||||||
22 | the broadcast located in this State. Accordingly, | ||||||
23 | the amount of revenue related to such an | ||||||
24 | arrangement that is included in the Illinois | ||||||
25 | numerator of the sales factor is the total fee or | ||||||
26 | other total remuneration from the person providing |
| |||||||
| |||||||
1 | the programming related to that broadcast | ||||||
2 | multiplied by the Illinois audience factor for | ||||||
3 | that broadcast. | ||||||
4 | (iv) In the case where film or radio | ||||||
5 | programming is provided by a taxpayer that is a | ||||||
6 | network or station to a customer for broadcast in | ||||||
7 | exchange for a fee or other remuneration from that | ||||||
8 | customer the broadcasting service is received at | ||||||
9 | the location of the office of the customer from | ||||||
10 | which the services were ordered in the regular | ||||||
11 | course of the customer's trade or business. | ||||||
12 | Accordingly, in such a case the revenue derived by | ||||||
13 | the taxpayer that is included in the taxpayer's | ||||||
14 | Illinois numerator of the sales factor is the | ||||||
15 | revenue from such customers who receive the | ||||||
16 | broadcasting service in Illinois. | ||||||
17 | (v) In the case where film or radio programming | ||||||
18 | is provided by a taxpayer that is not a network or | ||||||
19 | station to another person for broadcasting in | ||||||
20 | exchange for a fee or other remuneration from that | ||||||
21 | person, the broadcasting service is received at | ||||||
22 | the location of the office of the customer from | ||||||
23 | which the services were ordered in the regular | ||||||
24 | course of the customer's trade or business. | ||||||
25 | Accordingly, in such a case the revenue derived by | ||||||
26 | the taxpayer that is included in the taxpayer's |
| |||||||
| |||||||
1 | Illinois numerator of the sales factor is the | ||||||
2 | revenue from such customers who receive the | ||||||
3 | broadcasting service in Illinois. | ||||||
4 | (B-8) Gross receipts from winnings under the Illinois | ||||||
5 | Lottery Law from the assignment of a prize under Section | ||||||
6 | 13.1 of the Illinois Lottery Law are received in this | ||||||
7 | State. This paragraph (B-8) applies only to taxable years | ||||||
8 | ending on or after December 31, 2013. | ||||||
9 | (C) For taxable years ending before December 31, 2008, | ||||||
10 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
11 | (B-2), and (B-8) are in
this State if:
| ||||||
12 | (i) The income-producing activity is performed in | ||||||
13 | this State; or
| ||||||
14 | (ii) The income-producing activity is performed | ||||||
15 | both within and
without this State and a greater | ||||||
16 | proportion of the income-producing
activity is | ||||||
17 | performed within this State than without this State, | ||||||
18 | based
on performance costs.
| ||||||
19 | (C-5) For taxable years ending on or after December 31, | ||||||
20 | 2008, sales, other than sales governed by paragraphs (B), | ||||||
21 | (B-1), (B-2), (B-5), and (B-7), are in this State if any of | ||||||
22 | the following criteria are met: | ||||||
23 | (i) Sales from the sale or lease of real property | ||||||
24 | are in this State if the property is located in this | ||||||
25 | State. | ||||||
26 | (ii) Sales from the lease or rental of tangible |
| |||||||
| |||||||
1 | personal property are in this State if the property is | ||||||
2 | located in this State during the rental period. Sales | ||||||
3 | from the lease or rental of tangible personal property | ||||||
4 | that is characteristically moving property, including, | ||||||
5 | but not limited to, motor vehicles, rolling stock, | ||||||
6 | aircraft, vessels, or mobile equipment are in this | ||||||
7 | State to the extent that the property is used in this | ||||||
8 | State. | ||||||
9 | (iii) In the case of interest, net gains (but not | ||||||
10 | less than zero) and other items of income from | ||||||
11 | intangible personal property, the sale is in this State | ||||||
12 | if: | ||||||
13 | (a) in the case of a taxpayer who is a dealer | ||||||
14 | in the item of intangible personal property within | ||||||
15 | the meaning of Section 475 of the Internal Revenue | ||||||
16 | Code, the income or gain is received from a | ||||||
17 | customer in this State. For purposes of this | ||||||
18 | subparagraph, a customer is in this State if the | ||||||
19 | customer is an individual, trust or estate who is a | ||||||
20 | resident of this State and, for all other | ||||||
21 | customers, if the customer's commercial domicile | ||||||
22 | is in this State. Unless the dealer has actual | ||||||
23 | knowledge of the residence or commercial domicile | ||||||
24 | of a customer during a taxable year, the customer | ||||||
25 | shall be deemed to be a customer in this State if | ||||||
26 | the billing address of the customer, as shown in |
| |||||||
| |||||||
1 | the records of the dealer, is in this State; or | ||||||
2 | (b) in all other cases, if the | ||||||
3 | income-producing activity of the taxpayer is | ||||||
4 | performed in this State or, if the | ||||||
5 | income-producing activity of the taxpayer is | ||||||
6 | performed both within and without this State, if a | ||||||
7 | greater proportion of the income-producing | ||||||
8 | activity of the taxpayer is performed within this | ||||||
9 | State than in any other state, based on performance | ||||||
10 | costs. | ||||||
11 | (iv) Sales of services are in this State if the | ||||||
12 | services are received in this State. For the purposes | ||||||
13 | of this section, gross receipts from the performance of | ||||||
14 | services provided to a corporation, partnership, or | ||||||
15 | trust may only be attributed to a state where that | ||||||
16 | corporation, partnership, or trust has a fixed place of | ||||||
17 | business. If the state where the services are received | ||||||
18 | is not readily determinable or is a state where the | ||||||
19 | corporation, partnership, or trust receiving the | ||||||
20 | service does not have a fixed place of business, the | ||||||
21 | services shall be deemed to be received at the location | ||||||
22 | of the office of the customer from which the services | ||||||
23 | were ordered in the regular course of the customer's | ||||||
24 | trade or business. If the ordering office cannot be | ||||||
25 | determined, the services shall be deemed to be received | ||||||
26 | at the office of the customer to which the services are |
| |||||||
| |||||||
1 | billed. If the taxpayer is not taxable in the state in | ||||||
2 | which the services are received, the sale must be | ||||||
3 | excluded from both the numerator and the denominator of | ||||||
4 | the sales factor. The Department shall adopt rules | ||||||
5 | prescribing where specific types of service are | ||||||
6 | received, including, but not limited to, publishing, | ||||||
7 | and utility service.
| ||||||
8 | (D) For taxable years ending on or after December 31, | ||||||
9 | 1995, the following
items of income shall not be included | ||||||
10 | in the numerator or denominator of the
sales factor: | ||||||
11 | dividends; amounts included under Section 78 of the | ||||||
12 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
13 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
14 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
15 | construing this Section for taxable years ending before | ||||||
16 | December 31, 1995.
| ||||||
17 | (E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||||||
18 | ending on or
after December 31, 1999, provided that a | ||||||
19 | taxpayer may elect to apply the
provisions of these | ||||||
20 | paragraphs to prior tax years. Such election shall be made
| ||||||
21 | in the form and manner prescribed by the Department, shall | ||||||
22 | be irrevocable, and
shall apply to all tax years; provided | ||||||
23 | that, if a taxpayer's Illinois income
tax liability for any | ||||||
24 | tax year, as assessed under Section 903 prior to January
1, | ||||||
25 | 1999, was computed in a manner contrary to the provisions | ||||||
26 | of paragraphs
(B-1) or (B-2), no refund shall be payable to |
| |||||||
| |||||||
1 | the taxpayer for that tax year to
the extent such refund is | ||||||
2 | the result of applying the provisions of paragraph
(B-1) or | ||||||
3 | (B-2) retroactively. In the case of a unitary business | ||||||
4 | group, such
election shall apply to all members of such | ||||||
5 | group for every tax year such group
is in existence, but | ||||||
6 | shall not apply to any taxpayer for any period during
which | ||||||
7 | that taxpayer is not a member of such group.
| ||||||
8 | (b) Insurance companies.
| ||||||
9 | (1) In general. Except as otherwise
provided by | ||||||
10 | paragraph (2), business income of an insurance company for | ||||||
11 | a
taxable year shall be apportioned to this State by | ||||||
12 | multiplying such
income by a fraction, the numerator of | ||||||
13 | which is the direct premiums
written for insurance upon | ||||||
14 | property or risk in this State, and the
denominator of | ||||||
15 | which is the direct premiums written for insurance upon
| ||||||
16 | property or risk everywhere. For purposes of this | ||||||
17 | subsection, the term
"direct premiums written" means the | ||||||
18 | total amount of direct premiums
written, assessments and | ||||||
19 | annuity considerations as reported for the
taxable year on | ||||||
20 | the annual statement filed by the company with the
Illinois | ||||||
21 | Director of Insurance in the form approved by the National
| ||||||
22 | Convention of Insurance Commissioners
or such other form as | ||||||
23 | may be
prescribed in lieu thereof.
| ||||||
24 | (2) Reinsurance. If the principal source of premiums | ||||||
25 | written by an
insurance company consists of premiums for | ||||||
26 | reinsurance accepted by it,
the business income of such |
| |||||||
| |||||||
1 | company shall be apportioned to this State
by multiplying | ||||||
2 | such income by a fraction, the numerator of which is the
| ||||||
3 | sum of (i) direct premiums written for insurance upon | ||||||
4 | property or risk
in this State, plus (ii) premiums written | ||||||
5 | for reinsurance accepted in
respect of property or risk in | ||||||
6 | this State, and the denominator of which
is the sum of | ||||||
7 | (iii) direct premiums written for insurance upon property
| ||||||
8 | or risk everywhere, plus (iv) premiums written for | ||||||
9 | reinsurance accepted
in respect of property or risk | ||||||
10 | everywhere. For purposes of this
paragraph, premiums | ||||||
11 | written for reinsurance accepted in respect of
property or | ||||||
12 | risk in this State, whether or not otherwise determinable,
| ||||||
13 | may, at the election of the company, be determined on the | ||||||
14 | basis of the
proportion which premiums written for | ||||||
15 | reinsurance accepted from
companies commercially domiciled | ||||||
16 | in Illinois bears to premiums written
for reinsurance | ||||||
17 | accepted from all sources, or, alternatively, in the
| ||||||
18 | proportion which the sum of the direct premiums written for | ||||||
19 | insurance
upon property or risk in this State by each | ||||||
20 | ceding company from which
reinsurance is accepted bears to | ||||||
21 | the sum of the total direct premiums
written by each such | ||||||
22 | ceding company for the taxable year. The election made by a | ||||||
23 | company under this paragraph for its first taxable year | ||||||
24 | ending on or after December 31, 2011, shall be binding for | ||||||
25 | that company for that taxable year and for all subsequent | ||||||
26 | taxable years, and may be altered only with the written |
| |||||||
| |||||||
1 | permission of the Department, which shall not be | ||||||
2 | unreasonably withheld.
| ||||||
3 | (c) Financial organizations.
| ||||||
4 | (1) In general. For taxable years ending before | ||||||
5 | December 31, 2008, business income of a financial
| ||||||
6 | organization shall be apportioned to this State by | ||||||
7 | multiplying such
income by a fraction, the numerator of | ||||||
8 | which is its business income from
sources within this | ||||||
9 | State, and the denominator of which is its business
income | ||||||
10 | from all sources. For the purposes of this subsection, the
| ||||||
11 | business income of a financial organization from sources | ||||||
12 | within this
State is the sum of the amounts referred to in | ||||||
13 | subparagraphs (A) through
(E) following, but excluding the | ||||||
14 | adjusted income of an international banking
facility as | ||||||
15 | determined in paragraph (2):
| ||||||
16 | (A) Fees, commissions or other compensation for | ||||||
17 | financial services
rendered within this State;
| ||||||
18 | (B) Gross profits from trading in stocks, bonds or | ||||||
19 | other securities
managed within this State;
| ||||||
20 | (C) Dividends, and interest from Illinois | ||||||
21 | customers, which are received
within this State;
| ||||||
22 | (D) Interest charged to customers at places of | ||||||
23 | business maintained
within this State for carrying | ||||||
24 | debit balances of margin accounts,
without deduction | ||||||
25 | of any costs incurred in carrying such accounts; and
| ||||||
26 | (E) Any other gross income resulting from the |
| |||||||
| |||||||
1 | operation as a
financial organization within this | ||||||
2 | State. In computing the amounts
referred to in | ||||||
3 | paragraphs (A) through (E) of this subsection, any | ||||||
4 | amount
received by a member of an affiliated group | ||||||
5 | (determined under Section
1504(a) of the Internal | ||||||
6 | Revenue Code but without reference to whether
any such | ||||||
7 | corporation is an "includible corporation" under | ||||||
8 | Section
1504(b) of the Internal Revenue Code) from | ||||||
9 | another member of such group
shall be included only to | ||||||
10 | the extent such amount exceeds expenses of the
| ||||||
11 | recipient directly related thereto.
| ||||||
12 | (2) International Banking Facility. For taxable years | ||||||
13 | ending before December 31, 2008:
| ||||||
14 | (A) Adjusted Income. The adjusted income of an | ||||||
15 | international banking
facility is its income reduced | ||||||
16 | by the amount of the floor amount.
| ||||||
17 | (B) Floor Amount. The floor amount shall be the | ||||||
18 | amount, if any,
determined
by multiplying the income of | ||||||
19 | the international banking facility by a fraction,
not | ||||||
20 | greater than one, which is determined as follows:
| ||||||
21 | (i) The numerator shall be:
| ||||||
22 | The average aggregate, determined on a | ||||||
23 | quarterly basis, of the
financial
organization's | ||||||
24 | loans to banks in foreign countries, to foreign | ||||||
25 | domiciled
borrowers (except where secured | ||||||
26 | primarily by real estate) and to foreign
|
| |||||||
| |||||||
1 | governments and other foreign official | ||||||
2 | institutions, as reported for its
branches, | ||||||
3 | agencies and offices within the state on its | ||||||
4 | "Consolidated Report
of Condition", Schedule A, | ||||||
5 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
6 | the Federal Deposit Insurance Corporation and | ||||||
7 | other regulatory authorities,
for the year 1980, | ||||||
8 | minus
| ||||||
9 | The average aggregate, determined on a | ||||||
10 | quarterly basis, of such loans
(other
than loans of | ||||||
11 | an international banking facility), as reported by | ||||||
12 | the financial
institution for its branches, | ||||||
13 | agencies and offices within the state, on
the | ||||||
14 | corresponding Schedule and lines of the | ||||||
15 | Consolidated Report of Condition
for the current | ||||||
16 | taxable year, provided, however, that in no case | ||||||
17 | shall the
amount determined in this clause (the | ||||||
18 | subtrahend) exceed the amount determined
in the | ||||||
19 | preceding clause (the minuend); and
| ||||||
20 | (ii) the denominator shall be the average | ||||||
21 | aggregate, determined on a
quarterly basis, of the | ||||||
22 | international banking facility's loans to banks in
| ||||||
23 | foreign countries, to foreign domiciled borrowers | ||||||
24 | (except where secured
primarily by real estate) | ||||||
25 | and to foreign governments and other foreign
| ||||||
26 | official institutions, which were recorded in its |
| |||||||
| |||||||
1 | financial accounts for
the current taxable year.
| ||||||
2 | (C) Change to Consolidated Report of Condition and | ||||||
3 | in Qualification.
In the event the Consolidated Report | ||||||
4 | of Condition which is filed with the
Federal Deposit | ||||||
5 | Insurance Corporation and other regulatory authorities | ||||||
6 | is
altered so that the information required for | ||||||
7 | determining the floor amount
is not found on Schedule | ||||||
8 | A, lines 2.c., 5.b. and 7.a., the financial
institution | ||||||
9 | shall notify the Department and the Department may, by
| ||||||
10 | regulations or otherwise, prescribe or authorize the | ||||||
11 | use of an alternative
source for such information. The | ||||||
12 | financial institution shall also notify
the Department | ||||||
13 | should its international banking facility fail to | ||||||
14 | qualify as
such, in whole or in part, or should there | ||||||
15 | be any amendment or change to
the Consolidated Report | ||||||
16 | of Condition, as originally filed, to the extent
such | ||||||
17 | amendment or change alters the information used in | ||||||
18 | determining the floor
amount.
| ||||||
19 | (3) For taxable years ending on or after December 31, | ||||||
20 | 2008, the business income of a financial organization shall | ||||||
21 | be apportioned to this State by multiplying such income by | ||||||
22 | a fraction, the numerator of which is its gross receipts | ||||||
23 | from sources in this State or otherwise attributable to | ||||||
24 | this State's marketplace and the denominator of which is | ||||||
25 | its gross receipts everywhere during the taxable year. | ||||||
26 | "Gross receipts" for purposes of this subparagraph (3) |
| |||||||
| |||||||
1 | means gross income, including net taxable gain on | ||||||
2 | disposition of assets, including securities and money | ||||||
3 | market instruments, when derived from transactions and | ||||||
4 | activities in the regular course of the financial | ||||||
5 | organization's trade or business. The following examples | ||||||
6 | are illustrative:
| ||||||
7 | (i) Receipts from the lease or rental of real or | ||||||
8 | tangible personal property are in this State if the | ||||||
9 | property is located in this State during the rental | ||||||
10 | period. Receipts from the lease or rental of tangible | ||||||
11 | personal property that is characteristically moving | ||||||
12 | property, including, but not limited to, motor | ||||||
13 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
14 | equipment are from sources in this State to the extent | ||||||
15 | that the property is used in this State. | ||||||
16 | (ii) Interest income, commissions, fees, gains on | ||||||
17 | disposition, and other receipts from assets in the | ||||||
18 | nature of loans that are secured primarily by real | ||||||
19 | estate or tangible personal property are from sources | ||||||
20 | in this State if the security is located in this State. | ||||||
21 | (iii) Interest income, commissions, fees, gains on | ||||||
22 | disposition, and other receipts from consumer loans | ||||||
23 | that are not secured by real or tangible personal | ||||||
24 | property are from sources in this State if the debtor | ||||||
25 | is a resident of this State. | ||||||
26 | (iv) Interest income, commissions, fees, gains on |
| |||||||
| |||||||
1 | disposition, and other receipts from commercial loans | ||||||
2 | and installment obligations that are not secured by | ||||||
3 | real or tangible personal property are from sources in | ||||||
4 | this State if the proceeds of the loan are to be | ||||||
5 | applied in this State. If it cannot be determined where | ||||||
6 | the funds are to be applied, the income and receipts | ||||||
7 | are from sources in this State if the office of the | ||||||
8 | borrower from which the loan was negotiated in the | ||||||
9 | regular course of business is located in this State. If | ||||||
10 | the location of this office cannot be determined, the | ||||||
11 | income and receipts shall be excluded from the | ||||||
12 | numerator and denominator of the sales factor.
| ||||||
13 | (v) Interest income, fees, gains on disposition, | ||||||
14 | service charges, merchant discount income, and other | ||||||
15 | receipts from credit card receivables are from sources | ||||||
16 | in this State if the card charges are regularly billed | ||||||
17 | to a customer in this State. | ||||||
18 | (vi) Receipts from the performance of services, | ||||||
19 | including, but not limited to, fiduciary, advisory, | ||||||
20 | and brokerage services, are in this State if the | ||||||
21 | services are received in this State within the meaning | ||||||
22 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
23 | (vii) Receipts from the issuance of travelers | ||||||
24 | checks and money orders are from sources in this State | ||||||
25 | if the checks and money orders are issued from a | ||||||
26 | location within this State. |
| |||||||
| |||||||
1 | (viii) Receipts from investment assets and | ||||||
2 | activities and trading assets and activities are | ||||||
3 | included in the receipts factor as follows: | ||||||
4 | (1) Interest, dividends, net gains (but not | ||||||
5 | less than zero) and other income from investment | ||||||
6 | assets and activities from trading assets and | ||||||
7 | activities shall be included in the receipts | ||||||
8 | factor. Investment assets and activities and | ||||||
9 | trading assets and activities include but are not | ||||||
10 | limited to: investment securities; trading account | ||||||
11 | assets; federal funds; securities purchased and | ||||||
12 | sold under agreements to resell or repurchase; | ||||||
13 | options; futures contracts; forward contracts; | ||||||
14 | notional principal contracts such as swaps; | ||||||
15 | equities; and foreign currency transactions. With | ||||||
16 | respect to the investment and trading assets and | ||||||
17 | activities described in subparagraphs (A) and (B) | ||||||
18 | of this paragraph, the receipts factor shall | ||||||
19 | include the amounts described in such | ||||||
20 | subparagraphs. | ||||||
21 | (A) The receipts factor shall include the | ||||||
22 | amount by which interest from federal funds | ||||||
23 | sold and securities purchased under resale | ||||||
24 | agreements exceeds interest expense on federal | ||||||
25 | funds purchased and securities sold under | ||||||
26 | repurchase agreements. |
| |||||||
| |||||||
1 | (B) The receipts factor shall include the | ||||||
2 | amount by which interest, dividends, gains and | ||||||
3 | other income from trading assets and | ||||||
4 | activities, including but not limited to | ||||||
5 | assets and activities in the matched book, in | ||||||
6 | the arbitrage book, and foreign currency | ||||||
7 | transactions, exceed amounts paid in lieu of | ||||||
8 | interest, amounts paid in lieu of dividends, | ||||||
9 | and losses from such assets and activities. | ||||||
10 | (2) The numerator of the receipts factor | ||||||
11 | includes interest, dividends, net gains (but not | ||||||
12 | less than zero), and other income from investment | ||||||
13 | assets and activities and from trading assets and | ||||||
14 | activities described in paragraph (1) of this | ||||||
15 | subsection that are attributable to this State. | ||||||
16 | (A) The amount of interest, dividends, net | ||||||
17 | gains (but not less than zero), and other | ||||||
18 | income from investment assets and activities | ||||||
19 | in the investment account to be attributed to | ||||||
20 | this State and included in the numerator is | ||||||
21 | determined by multiplying all such income from | ||||||
22 | such assets and activities by a fraction, the | ||||||
23 | numerator of which is the gross income from | ||||||
24 | such assets and activities which are properly | ||||||
25 | assigned to a fixed place of business of the | ||||||
26 | taxpayer within this State and the denominator |
| |||||||
| |||||||
1 | of which is the gross income from all such | ||||||
2 | assets and activities. | ||||||
3 | (B) The amount of interest from federal | ||||||
4 | funds sold and purchased and from securities | ||||||
5 | purchased under resale agreements and | ||||||
6 | securities sold under repurchase agreements | ||||||
7 | attributable to this State and included in the | ||||||
8 | numerator is determined by multiplying the | ||||||
9 | amount described in subparagraph (A) of | ||||||
10 | paragraph (1) of this subsection from such | ||||||
11 | funds and such securities by a fraction, the | ||||||
12 | numerator of which is the gross income from | ||||||
13 | such funds and such securities which are | ||||||
14 | properly assigned to a fixed place of business | ||||||
15 | of the taxpayer within this State and the | ||||||
16 | denominator of which is the gross income from | ||||||
17 | all such funds and such securities. | ||||||
18 | (C) The amount of interest, dividends, | ||||||
19 | gains, and other income from trading assets and | ||||||
20 | activities, including but not limited to | ||||||
21 | assets and activities in the matched book, in | ||||||
22 | the arbitrage book and foreign currency | ||||||
23 | transactions (but excluding amounts described | ||||||
24 | in subparagraphs (A) or (B) of this paragraph), | ||||||
25 | attributable to this State and included in the | ||||||
26 | numerator is determined by multiplying the |
| |||||||
| |||||||
1 | amount described in subparagraph (B) of | ||||||
2 | paragraph (1) of this subsection by a fraction, | ||||||
3 | the numerator of which is the gross income from | ||||||
4 | such trading assets and activities which are | ||||||
5 | properly assigned to a fixed place of business | ||||||
6 | of the taxpayer within this State and the | ||||||
7 | denominator of which is the gross income from | ||||||
8 | all such assets and activities. | ||||||
9 | (D) Properly assigned, for purposes of | ||||||
10 | this paragraph (2) of this subsection, means | ||||||
11 | the investment or trading asset or activity is | ||||||
12 | assigned to the fixed place of business with | ||||||
13 | which it has a preponderance of substantive | ||||||
14 | contacts. An investment or trading asset or | ||||||
15 | activity assigned by the taxpayer to a fixed | ||||||
16 | place of business without the State shall be | ||||||
17 | presumed to have been properly assigned if: | ||||||
18 | (i) the taxpayer has assigned, in the | ||||||
19 | regular course of its business, such asset | ||||||
20 | or activity on its records to a fixed place | ||||||
21 | of business consistent with federal or | ||||||
22 | state regulatory requirements; | ||||||
23 | (ii) such assignment on its records is | ||||||
24 | based upon substantive contacts of the | ||||||
25 | asset or activity to such fixed place of | ||||||
26 | business; and |
| |||||||
| |||||||
1 | (iii) the taxpayer uses such records | ||||||
2 | reflecting assignment of such assets or | ||||||
3 | activities for the filing of all state and | ||||||
4 | local tax returns for which an assignment | ||||||
5 | of such assets or activities to a fixed | ||||||
6 | place of business is required. | ||||||
7 | (E) The presumption of proper assignment | ||||||
8 | of an investment or trading asset or activity | ||||||
9 | provided in subparagraph (D) of paragraph (2) | ||||||
10 | of this subsection may be rebutted upon a | ||||||
11 | showing by the Department, supported by a | ||||||
12 | preponderance of the evidence, that the | ||||||
13 | preponderance of substantive contacts | ||||||
14 | regarding such asset or activity did not occur | ||||||
15 | at the fixed place of business to which it was | ||||||
16 | assigned on the taxpayer's records. If the | ||||||
17 | fixed place of business that has a | ||||||
18 | preponderance of substantive contacts cannot | ||||||
19 | be determined for an investment or trading | ||||||
20 | asset or activity to which the presumption in | ||||||
21 | subparagraph (D) of paragraph (2) of this | ||||||
22 | subsection does not apply or with respect to | ||||||
23 | which that presumption has been rebutted, that | ||||||
24 | asset or activity is properly assigned to the | ||||||
25 | state in which the taxpayer's commercial | ||||||
26 | domicile is located. For purposes of this |
| |||||||
| |||||||
1 | subparagraph (E), it shall be presumed, | ||||||
2 | subject to rebuttal, that taxpayer's | ||||||
3 | commercial domicile is in the state of the | ||||||
4 | United States or the District of Columbia to | ||||||
5 | which the greatest number of employees are | ||||||
6 | regularly connected with the management of the | ||||||
7 | investment or trading income or out of which | ||||||
8 | they are working, irrespective of where the | ||||||
9 | services of such employees are performed, as of | ||||||
10 | the last day of the taxable year.
| ||||||
11 | (4) (Blank). | ||||||
12 | (5) (Blank). | ||||||
13 | (c-1) Federally regulated exchanges. For taxable years | ||||||
14 | ending on or after December 31, 2012 and ending prior to | ||||||
15 | December 31, 2017 , business income of a federally regulated | ||||||
16 | exchange shall, at the option of the federally regulated | ||||||
17 | exchange, be apportioned to this State by multiplying such | ||||||
18 | income by a fraction, the numerator of which is its business | ||||||
19 | income from sources within this State, and the denominator of | ||||||
20 | which is its business income from all sources. For purposes of | ||||||
21 | this subsection, the business income within this State of a | ||||||
22 | federally regulated exchange is the sum of the following: | ||||||
23 | (1) Receipts attributable to transactions executed on | ||||||
24 | a physical trading floor if that physical trading floor is | ||||||
25 | located in this State. | ||||||
26 | (2) Receipts attributable to all other matching, |
| |||||||
| |||||||
1 | execution, or clearing transactions, including without | ||||||
2 | limitation receipts from the provision of matching, | ||||||
3 | execution, or clearing services to another entity, | ||||||
4 | multiplied by (i) for taxable years ending on or after | ||||||
5 | December 31, 2012 but before December 31, 2013, 63.77%; and | ||||||
6 | (ii) for taxable years ending on or after December 31, | ||||||
7 | 2013, 27.54%. | ||||||
8 | (3) All other receipts not governed by subparagraphs | ||||||
9 | (1) or (2) of this subsection (c-1), to the extent the | ||||||
10 | receipts would be characterized as "sales in this State" | ||||||
11 | under item (3) of subsection (a) of this Section. | ||||||
12 | "Federally regulated exchange" means (i) a "registered | ||||||
13 | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||||||
14 | or (C), (ii) an "exchange" or "clearing agency" within the | ||||||
15 | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||||||
16 | entities regulated under any successor regulatory structure to | ||||||
17 | the foregoing, and (iv) all taxpayers who are members of the | ||||||
18 | same unitary business group as a federally regulated exchange, | ||||||
19 | determined without regard to the prohibition in Section | ||||||
20 | 1501(a)(27) of this Act against including in a unitary business | ||||||
21 | group taxpayers who are ordinarily required to apportion | ||||||
22 | business income under different subsections of this Section; | ||||||
23 | provided that this subparagraph (iv) shall apply only if 50% or | ||||||
24 | more of the business receipts of the unitary business group | ||||||
25 | determined by application of this subparagraph (iv) for the | ||||||
26 | taxable year are attributable to the matching, execution, or |
| |||||||
| |||||||
1 | clearing of transactions conducted by an entity described in | ||||||
2 | subparagraph (i), (ii), or (iii) of this paragraph. | ||||||
3 | In no event shall the Illinois apportionment percentage | ||||||
4 | computed in accordance with this subsection (c-1) for any | ||||||
5 | taxpayer for any tax year be less than the Illinois | ||||||
6 | apportionment percentage computed under this subsection (c-1) | ||||||
7 | for that taxpayer for the first full tax year ending on or | ||||||
8 | after December 31, 2013 for which this subsection (c-1) applied | ||||||
9 | to the taxpayer. | ||||||
10 | (d) Transportation services. For taxable years ending | ||||||
11 | before December 31, 2008, business income derived from | ||||||
12 | furnishing
transportation services shall be apportioned to | ||||||
13 | this State in accordance
with paragraphs (1) and (2):
| ||||||
14 | (1) Such business income (other than that derived from
| ||||||
15 | transportation by pipeline) shall be apportioned to this | ||||||
16 | State by
multiplying such income by a fraction, the | ||||||
17 | numerator of which is the
revenue miles of the person in | ||||||
18 | this State, and the denominator of which
is the revenue | ||||||
19 | miles of the person everywhere. For purposes of this
| ||||||
20 | paragraph, a revenue mile is the transportation of 1 | ||||||
21 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
22 | for a consideration. Where a
person is engaged in the | ||||||
23 | transportation of both passengers and freight,
the | ||||||
24 | fraction above referred to shall be determined by means of | ||||||
25 | an
average of the passenger revenue mile fraction and the | ||||||
26 | freight revenue
mile fraction, weighted to reflect the |
| |||||||
| |||||||
1 | person's
| ||||||
2 | (A) relative railway operating income from total | ||||||
3 | passenger and total
freight service, as reported to the | ||||||
4 | Interstate Commerce Commission, in
the case of | ||||||
5 | transportation by railroad, and
| ||||||
6 | (B) relative gross receipts from passenger and | ||||||
7 | freight
transportation, in case of transportation | ||||||
8 | other than by railroad.
| ||||||
9 | (2) Such business income derived from transportation | ||||||
10 | by pipeline
shall be apportioned to this State by | ||||||
11 | multiplying such income by a
fraction, the numerator of | ||||||
12 | which is the revenue miles of the person in
this State, and | ||||||
13 | the denominator of which is the revenue miles of the
person | ||||||
14 | everywhere. For the purposes of this paragraph, a revenue | ||||||
15 | mile is
the transportation by pipeline of 1 barrel of oil, | ||||||
16 | 1,000 cubic feet of
gas, or of any specified quantity of | ||||||
17 | any other substance, the distance
of 1 mile for a | ||||||
18 | consideration.
| ||||||
19 | (3) For taxable years ending on or after December 31, | ||||||
20 | 2008, business income derived from providing | ||||||
21 | transportation services other than airline services shall | ||||||
22 | be apportioned to this State by using a fraction, (a) the | ||||||
23 | numerator of which shall be (i) all receipts from any | ||||||
24 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
25 | any other substance (other than by airline) that both | ||||||
26 | originates and terminates in this State, plus (ii) that |
| |||||||
| |||||||
1 | portion of the person's gross receipts from movements or | ||||||
2 | shipments of people, goods, mail, oil, gas, or any other | ||||||
3 | substance (other than by airline) that originates in one | ||||||
4 | state or jurisdiction and terminates in another state or | ||||||
5 | jurisdiction, that is determined by the ratio that the | ||||||
6 | miles traveled in this State bears to total miles | ||||||
7 | everywhere and (b) the denominator of which shall be all | ||||||
8 | revenue derived from the movement or shipment of people, | ||||||
9 | goods, mail, oil, gas, or any other substance (other than | ||||||
10 | by airline). Where a taxpayer is engaged in the | ||||||
11 | transportation of both passengers and freight, the | ||||||
12 | fraction above referred to shall first be determined | ||||||
13 | separately for passenger miles and freight miles. Then an | ||||||
14 | average of the passenger miles fraction and the freight | ||||||
15 | miles fraction shall be weighted to reflect the taxpayer's: | ||||||
16 | (A) relative railway operating income from total | ||||||
17 | passenger and total freight service, as reported to the | ||||||
18 | Surface Transportation Board, in the case of | ||||||
19 | transportation by railroad; and | ||||||
20 | (B) relative gross receipts from passenger and | ||||||
21 | freight transportation, in case of transportation | ||||||
22 | other than by railroad.
| ||||||
23 | (4) For taxable years ending on or after December 31, | ||||||
24 | 2008, business income derived from furnishing airline
| ||||||
25 | transportation services shall be apportioned to this State | ||||||
26 | by
multiplying such income by a fraction, the numerator of |
| |||||||
| |||||||
1 | which is the
revenue miles of the person in this State, and | ||||||
2 | the denominator of which
is the revenue miles of the person | ||||||
3 | everywhere. For purposes of this
paragraph, a revenue mile | ||||||
4 | is the transportation of one passenger or one net
ton of | ||||||
5 | freight the distance of one mile for a consideration. If a
| ||||||
6 | person is engaged in the transportation of both passengers | ||||||
7 | and freight,
the fraction above referred to shall be | ||||||
8 | determined by means of an
average of the passenger revenue | ||||||
9 | mile fraction and the freight revenue
mile fraction, | ||||||
10 | weighted to reflect the person's relative gross receipts | ||||||
11 | from passenger and freight
airline transportation.
| ||||||
12 | (e) Combined apportionment. Where 2 or more persons are | ||||||
13 | engaged in
a unitary business as described in subsection | ||||||
14 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
15 | State by one or more members of the
group, the business income | ||||||
16 | attributable to this State by any such member
or members shall | ||||||
17 | be apportioned by means of the combined apportionment method.
| ||||||
18 | (f) Alternative allocation. If the allocation and | ||||||
19 | apportionment
provisions of subsections (a) through (e) and of | ||||||
20 | subsection (h) do not, for taxable years ending before December | ||||||
21 | 31, 2008, fairly represent the
extent of a person's business | ||||||
22 | activity in this State, or, for taxable years ending on or | ||||||
23 | after December 31, 2008, fairly represent the market for the | ||||||
24 | person's goods, services, or other sources of business income, | ||||||
25 | the person may
petition for, or the Director may, without a | ||||||
26 | petition, permit or require, in respect of all or any part
of |
| |||||||
| |||||||
1 | the person's business activity, if reasonable:
| ||||||
2 | (1) Separate accounting;
| ||||||
3 | (2) The exclusion of any one or more factors;
| ||||||
4 | (3) The inclusion of one or more additional factors | ||||||
5 | which will
fairly represent the person's business | ||||||
6 | activities or market in this State; or
| ||||||
7 | (4) The employment of any other method to effectuate an | ||||||
8 | equitable
allocation and apportionment of the person's | ||||||
9 | business income.
| ||||||
10 | (g) Cross reference. For allocation of business income by | ||||||
11 | residents,
see Section 301(a).
| ||||||
12 | (h) For tax years ending on or after December 31, 1998 and | ||||||
13 | ending on or before December 31, 2017 , the apportionment
factor | ||||||
14 | of persons who apportion their business income to this State | ||||||
15 | under
subsection (a) shall be equal to:
| ||||||
16 | (1) for tax years ending on or after December 31, 1998 | ||||||
17 | and before December
31, 1999, 16 2/3% of the property | ||||||
18 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
19 | the sales factor;
| ||||||
20 | (2) for tax years ending on or after December 31, 1999 | ||||||
21 | and before December
31,
2000, 8 1/3% of the property factor | ||||||
22 | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||||||
23 | factor;
| ||||||
24 | (3) for tax years ending on or after December 31, 2000, | ||||||
25 | the sales factor.
| ||||||
26 | If, in any tax year ending on or after December 31, 1998 and |
| |||||||
| |||||||
1 | before December
31, 2000, the denominator of the payroll, | ||||||
2 | property, or sales factor is zero,
the apportionment
factor | ||||||
3 | computed in paragraph (1) or (2) of this subsection for that | ||||||
4 | year shall
be divided by an amount equal to 100% minus the | ||||||
5 | percentage weight given to each
factor whose denominator is | ||||||
6 | equal to zero.
| ||||||
7 | (Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756, | ||||||
8 | eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
| ||||||
9 | (35 ILCS 5/309 new) | ||||||
10 | Sec. 309. Water's edge election; inclusion of tax havens. | ||||||
11 | (a) As used in this Section: | ||||||
12 | "Affiliated corporation" means a United States parent | ||||||
13 | corporation and any subsidiary of which more than 50% of | ||||||
14 | the voting stock is owned directly or indirectly by another | ||||||
15 | corporate member of the water's-edge combined group. | ||||||
16 | "United States" means the 50 states of the United | ||||||
17 | States and the District of Columbia. | ||||||
18 | "Water's edge combined group" means all corporations | ||||||
19 | or entities included in the election of a taxpayer under | ||||||
20 | this Section. | ||||||
21 | (b) Notwithstanding any other provisions of law, a taxpayer | ||||||
22 | subject to the taxes imposed under subsections (a) and (b) of | ||||||
23 | Section 201 of this Act may apportion its income under this | ||||||
24 | Section. A return under filed by a taxpayer that elects to | ||||||
25 | apportion its income under this Section must include the income |
| |||||||
| |||||||
1 | and apportionment factors of the following affiliated | ||||||
2 | corporations only: | ||||||
3 | (1) a corporation incorporated in the United States in | ||||||
4 | a unitary relationship with the taxpayer and eligible to be | ||||||
5 | included in a federal consolidated return as described in | ||||||
6 | 26 U.S.C. 1501 through 1505 that has more than 20% of its | ||||||
7 | payroll and property assignable to locations inside the | ||||||
8 | United States; for purposes of determining eligibility for | ||||||
9 | inclusion in a federal consolidated return under this | ||||||
10 | subsection (1)(a), the 80% stock ownership requirements of | ||||||
11 | 26 U.S.C. 1504 must be reduced to ownership of over 50% of | ||||||
12 | the voting stock directly or indirectly owned or controlled | ||||||
13 | by an includable corporation; | ||||||
14 | (2) domestic international sales corporations, as | ||||||
15 | described in 26 U.S.C. 991 through 994, and foreign sales | ||||||
16 | corporations, as described in 26 U.S.C. 921 through 927; | ||||||
17 | (3) export trade corporations, as described in 26 | ||||||
18 | U.S.C. 970 and 971; | ||||||
19 | (4) foreign corporations deriving gain or loss from | ||||||
20 | disposition of a United States real property interest to | ||||||
21 | the extent recognized under 26 U.S.C. 897; | ||||||
22 | (5) a corporation incorporated outside the United | ||||||
23 | States if over 50% of its voting stock is owned directly or | ||||||
24 | indirectly by the taxpayer and if more than 20% of the | ||||||
25 | average of its payroll and property is assignable to a | ||||||
26 | location inside the United States; or |
| |||||||
| |||||||
1 | (6) a corporation that is in a unitary relationship | ||||||
2 | with the taxpayer and that is incorporated in a tax haven, | ||||||
3 | including Andorra, Anguilla, Antigua and Barbuda, Aruba, | ||||||
4 | the Bahamas, Bahrain, Barbados, Belize, Bermuda, British | ||||||
5 | Virgin Islands, Cayman Islands, Cook Islands, Cyprus, | ||||||
6 | Dominica, Gibraltar, Grenada, Guernsey-Sark-Alderney, Isle | ||||||
7 | of Man, Jersey, Liberia, Liechtenstein, Luxembourg, Malta, | ||||||
8 | Marshall Islands, Mauritius, Monaco, Montserrat, Nauru, | ||||||
9 | Netherlands Antilles, Niue, Panama, Samoa, San Marino, | ||||||
10 | Seychelles, St. Kitts and Nevis, St. Lucia, St. Vincent and | ||||||
11 | the Grenadines, Turks and Caicos Islands, U.S. Virgin | ||||||
12 | Islands, and Vanuatu. | ||||||
13 | (c) For purposes of paragraphs (1) through (5) of | ||||||
14 | subsection (b), the location of payroll and property shall be | ||||||
15 | determined under the individual state's laws and regulations | ||||||
16 | that set forth the apportionment formulas used to assign net | ||||||
17 | income subject to taxes on or measured by net income. If a | ||||||
18 | state does not impose a tax on or measured by net income, | ||||||
19 | apportionment is determined under this Act. For the purposes of | ||||||
20 | paragraph (6) of subsection (b), income shifted to a tax haven, | ||||||
21 | to the extent taxable, is considered income subject to | ||||||
22 | apportionment. | ||||||
23 | (d) A water's edge election may be made by a taxpayer and | ||||||
24 | is effective only if every affiliated corporation subject to | ||||||
25 | the taxes imposed under this Act consents to the election. | ||||||
26 | Consent by the common parent of an affiliated group constitutes |
| |||||||
| |||||||
1 | consent of all members of the group. An affiliated corporation | ||||||
2 | that becomes subject to taxes under this Act after the water's | ||||||
3 | edge election is considered to have consented to the election. | ||||||
4 | The election must disclose the identity of the taxpayer and the | ||||||
5 | identity of any affiliated corporation, including an | ||||||
6 | affiliated corporation incorporated in a tax haven set forth in | ||||||
7 | paragraph (6) of subsection (b), in which the taxpayer owns | ||||||
8 | directly or indirectly more than 50% of the voting stock of the | ||||||
9 | affiliated corporation. | ||||||
10 | (e) Each water's edge election must be for a 3-year | ||||||
11 | renewable period. A water's edge election may be changed by a | ||||||
12 | taxpayer before the end of each 3-year period only with the | ||||||
13 | permission of the Department. In granting a change of election, | ||||||
14 | the Department shall impose reasonable conditions that are | ||||||
15 | necessary to prevent the avoidance of tax or clearly reflect | ||||||
16 | income for the election period prior to the change. | ||||||
17 | (f) For the purposes of this Section, dividends received | ||||||
18 | from corporations incorporated outside the United States, to | ||||||
19 | the extent taxable, are considered income subject to | ||||||
20 | apportionment. The after-tax net income of United States | ||||||
21 | corporations excluded from eligibility as affiliated | ||||||
22 | corporations under this Section and possession corporations | ||||||
23 | described in sections 931 through 934 and 936 of the Internal | ||||||
24 | Revenue Code are considered dividends received from | ||||||
25 | corporations incorporated outside the United States. Eighty | ||||||
26 | percent of all dividends apportionable under this Section must |
| |||||||
| |||||||
1 | be excluded from income subject to apportionment. "Deemed" | ||||||
2 | distributions, as set forth in section 78 of the Internal | ||||||
3 | Revenue Code, and corresponding amounts with respect to | ||||||
4 | dividends considered received under this subsection must be | ||||||
5 | excluded from the income of the water's-edge combined group. | ||||||
6 | The dividends apportionable under this subsection are in lieu | ||||||
7 | of any expenses attributable to dividend income. A dividend | ||||||
8 | from a corporation required to be combined in the water's edge | ||||||
9 | combined group must be eliminated from the calculation of | ||||||
10 | apportionable income.
| ||||||
11 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
12 | Sec. 1501. Definitions.
| ||||||
13 | (a) In general. When used in this Act, where not
otherwise | ||||||
14 | distinctly expressed or manifestly incompatible with the | ||||||
15 | intent
thereof:
| ||||||
16 | (1) Business income. The term "business income" means | ||||||
17 | all income that may be treated as apportionable business | ||||||
18 | income under the Constitution of the United States. | ||||||
19 | Business income is net of the deductions allocable thereto. | ||||||
20 | Such term does not include compensation
or the deductions | ||||||
21 | allocable thereto.
For each taxable year beginning on or | ||||||
22 | after January 1, 2003, a taxpayer may
elect to treat all | ||||||
23 | income other than compensation as business income. This
| ||||||
24 | election shall be made in accordance with rules adopted by | ||||||
25 | the Department and,
once made, shall be irrevocable.
|
| |||||||
| |||||||
1 | (1.5) Captive real estate investment trust:
| ||||||
2 | (A) The term "captive real estate investment | ||||||
3 | trust" means a corporation, trust, or association:
| ||||||
4 | (i) that is considered a real estate | ||||||
5 | investment trust for the taxable year under | ||||||
6 | Section 856 of the Internal Revenue Code;
| ||||||
7 | (ii) the certificates of beneficial interest | ||||||
8 | or shares of which are not regularly traded on an | ||||||
9 | established securities market; and | ||||||
10 | (iii) of which more than 50% of the voting | ||||||
11 | power or value of the beneficial interest or | ||||||
12 | shares, at any time during the last half of the | ||||||
13 | taxable year, is owned or controlled, directly, | ||||||
14 | indirectly, or constructively, by a single | ||||||
15 | corporation. | ||||||
16 | (B) The term "captive real estate investment | ||||||
17 | trust" does not include: | ||||||
18 | (i) a real estate investment trust of which | ||||||
19 | more than 50% of the voting power or value of the | ||||||
20 | beneficial interest or shares is owned or | ||||||
21 | controlled, directly, indirectly, or | ||||||
22 | constructively, by: | ||||||
23 | (a) a real estate investment trust, other | ||||||
24 | than a captive real estate investment trust; | ||||||
25 | (b) a person who is exempt from taxation | ||||||
26 | under Section 501 of the Internal Revenue Code, |
| |||||||
| |||||||
1 | and who is not required to treat income | ||||||
2 | received from the real estate investment trust | ||||||
3 | as unrelated business taxable income under | ||||||
4 | Section 512 of the Internal Revenue Code; | ||||||
5 | (c) a listed Australian property trust, if | ||||||
6 | no more than 50% of the voting power or value | ||||||
7 | of the beneficial interest or shares of that | ||||||
8 | trust, at any time during the last half of the | ||||||
9 | taxable year, is owned or controlled, directly | ||||||
10 | or indirectly, by a single person; | ||||||
11 | (d) an entity organized as a trust, | ||||||
12 | provided a listed Australian property trust | ||||||
13 | described in subparagraph (c) owns or | ||||||
14 | controls, directly or indirectly, or | ||||||
15 | constructively, 75% or more of the voting power | ||||||
16 | or value of the beneficial interests or shares | ||||||
17 | of such entity; or | ||||||
18 | (e) an entity that is organized outside of | ||||||
19 | the laws of the United States and that | ||||||
20 | satisfies all of the following criteria: | ||||||
21 | (1) at least 75% of the entity's total | ||||||
22 | asset value at the close of its taxable | ||||||
23 | year is represented by real estate assets | ||||||
24 | (as defined in Section 856(c)(5)(B) of the | ||||||
25 | Internal Revenue Code, thereby including | ||||||
26 | shares or certificates of beneficial |
| |||||||
| |||||||
1 | interest in any real estate investment | ||||||
2 | trust), cash and cash equivalents, and | ||||||
3 | U.S. Government securities; | ||||||
4 | (2) the entity is not subject to tax on | ||||||
5 | amounts that are distributed to its | ||||||
6 | beneficial owners or is exempt from | ||||||
7 | entity-level taxation; | ||||||
8 | (3) the entity distributes at least | ||||||
9 | 85% of its taxable income (as computed in | ||||||
10 | the jurisdiction in which it is organized) | ||||||
11 | to the holders of its shares or | ||||||
12 | certificates of beneficial interest on an | ||||||
13 | annual basis; | ||||||
14 | (4) either (i) the shares or | ||||||
15 | beneficial interests of the entity are | ||||||
16 | regularly traded on an established | ||||||
17 | securities market or (ii) not more than 10% | ||||||
18 | of the voting power or value in the entity | ||||||
19 | is held, directly, indirectly, or | ||||||
20 | constructively, by a single entity or | ||||||
21 | individual; and | ||||||
22 | (5) the entity is organized in a | ||||||
23 | country that has entered into a tax treaty | ||||||
24 | with the United States; or | ||||||
25 | (ii) during its first taxable year for which it | ||||||
26 | elects to be treated as a real estate investment |
| |||||||
| |||||||
1 | trust under Section 856(c)(1) of the Internal | ||||||
2 | Revenue Code, a real estate investment trust the | ||||||
3 | certificates of beneficial interest or shares of | ||||||
4 | which are not regularly traded on an established | ||||||
5 | securities market, but only if the certificates of | ||||||
6 | beneficial interest or shares of the real estate | ||||||
7 | investment trust are regularly traded on an | ||||||
8 | established securities market prior to the earlier | ||||||
9 | of the due date (including extensions) for filing | ||||||
10 | its return under this Act for that first taxable | ||||||
11 | year or the date it actually files that return. | ||||||
12 | (C) For the purposes of this subsection (1.5), the | ||||||
13 | constructive ownership rules prescribed under Section | ||||||
14 | 318(a) of the Internal Revenue Code, as modified by | ||||||
15 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
16 | in determining the ownership of stock, assets, or net | ||||||
17 | profits of any person.
| ||||||
18 | (D) For the purposes of this item (1.5), for | ||||||
19 | taxable years ending on or after August 16, 2007, the | ||||||
20 | voting power or value of the beneficial interest or | ||||||
21 | shares of a real estate investment trust does not | ||||||
22 | include any voting power or value of beneficial | ||||||
23 | interest or shares in a real estate investment trust | ||||||
24 | held directly or indirectly in a segregated asset | ||||||
25 | account by a life insurance company (as described in | ||||||
26 | Section 817 of the Internal Revenue Code) to the extent |
| |||||||
| |||||||
1 | such voting power or value is for the benefit of | ||||||
2 | entities or persons who are either immune from taxation | ||||||
3 | or exempt from taxation under subtitle A of the | ||||||
4 | Internal Revenue Code.
| ||||||
5 | (2) Commercial domicile. The term "commercial | ||||||
6 | domicile" means the
principal
place from which the trade or | ||||||
7 | business of the taxpayer is directed or managed.
| ||||||
8 | (3) Compensation. The term "compensation" means wages, | ||||||
9 | salaries,
commissions
and any other form of remuneration | ||||||
10 | paid to employees for personal services.
| ||||||
11 | (4) Corporation. The term "corporation" includes | ||||||
12 | associations, joint-stock
companies, insurance companies | ||||||
13 | and cooperatives. Any entity, including a
limited | ||||||
14 | liability company formed under the Illinois Limited | ||||||
15 | Liability Company
Act, shall be treated as a corporation if | ||||||
16 | it is so classified for federal
income tax purposes.
| ||||||
17 | (5) Department. The term "Department" means the | ||||||
18 | Department of Revenue of
this State.
| ||||||
19 | (6) Director. The term "Director" means the Director of | ||||||
20 | Revenue of this
State.
| ||||||
21 | (7) Fiduciary. The term "fiduciary" means a guardian, | ||||||
22 | trustee, executor,
administrator, receiver, or any person | ||||||
23 | acting in any fiduciary capacity for any
person.
| ||||||
24 | (8) Financial organization.
| ||||||
25 | (A) The term "financial organization" means
any
| ||||||
26 | bank, bank holding company, trust company, savings |
| |||||||
| |||||||
1 | bank, industrial bank,
land bank, safe deposit | ||||||
2 | company, private banker, savings and loan association,
| ||||||
3 | building and loan association, credit union, currency | ||||||
4 | exchange, cooperative
bank, small loan company, sales | ||||||
5 | finance company, investment company, or any
person | ||||||
6 | which is owned by a bank or bank holding company. For | ||||||
7 | the purpose of
this Section a "person" will include | ||||||
8 | only those persons which a bank holding
company may | ||||||
9 | acquire and hold an interest in, directly or | ||||||
10 | indirectly, under the
provisions of the Bank Holding | ||||||
11 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
12 | where interests in any person must be disposed of | ||||||
13 | within certain
required time limits under the Bank | ||||||
14 | Holding Company Act of 1956.
| ||||||
15 | (B) For purposes of subparagraph (A) of this | ||||||
16 | paragraph, the term
"bank" includes (i) any entity that | ||||||
17 | is regulated by the Comptroller of the
Currency under | ||||||
18 | the National Bank Act, or by the Federal Reserve Board, | ||||||
19 | or by
the
Federal Deposit Insurance Corporation and | ||||||
20 | (ii) any federally or State chartered
bank
operating as | ||||||
21 | a credit card bank.
| ||||||
22 | (C) For purposes of subparagraph (A) of this | ||||||
23 | paragraph, the term
"sales finance company" has the | ||||||
24 | meaning provided in the following item (i) or
(ii):
| ||||||
25 | (i) A person primarily engaged in one or more | ||||||
26 | of the following
businesses: the business of |
| |||||||
| |||||||
1 | purchasing customer receivables, the business
of | ||||||
2 | making loans upon the security of customer | ||||||
3 | receivables, the
business of making loans for the | ||||||
4 | express purpose of funding purchases of
tangible | ||||||
5 | personal property or services by the borrower, or | ||||||
6 | the business of
finance leasing. For purposes of | ||||||
7 | this item (i), "customer receivable"
means:
| ||||||
8 | (a) a retail installment contract or | ||||||
9 | retail charge agreement within
the
meaning
of | ||||||
10 | the Sales Finance Agency Act, the Retail | ||||||
11 | Installment Sales Act, or the
Motor Vehicle | ||||||
12 | Retail Installment Sales Act;
| ||||||
13 | (b) an installment, charge, credit, or | ||||||
14 | similar contract or agreement
arising from
the | ||||||
15 | sale of tangible personal property or services | ||||||
16 | in a transaction involving
a deferred payment | ||||||
17 | price payable in one or more installments | ||||||
18 | subsequent
to the sale; or
| ||||||
19 | (c) the outstanding balance of a contract | ||||||
20 | or agreement described in
provisions
(a) or (b) | ||||||
21 | of this item (i).
| ||||||
22 | A customer receivable need not provide for | ||||||
23 | payment of interest on
deferred
payments. A sales | ||||||
24 | finance company may purchase a customer receivable | ||||||
25 | from, or
make a loan secured by a customer | ||||||
26 | receivable to, the seller in the original
|
| |||||||
| |||||||
1 | transaction or to a person who purchased the | ||||||
2 | customer receivable directly or
indirectly from | ||||||
3 | that seller.
| ||||||
4 | (ii) A corporation meeting each of the | ||||||
5 | following criteria:
| ||||||
6 | (a) the corporation must be a member of an | ||||||
7 | "affiliated group" within
the
meaning of | ||||||
8 | Section 1504(a) of the Internal Revenue Code, | ||||||
9 | determined
without regard to Section 1504(b) | ||||||
10 | of the Internal Revenue Code;
| ||||||
11 | (b) more than 50% of the gross income of | ||||||
12 | the corporation for the
taxable
year
must be | ||||||
13 | interest income derived from qualifying loans. | ||||||
14 | A "qualifying
loan" is a loan made to a member | ||||||
15 | of the corporation's affiliated group that
| ||||||
16 | originates customer receivables (within the | ||||||
17 | meaning of item (i)) or to whom
customer | ||||||
18 | receivables originated by a member of the | ||||||
19 | affiliated group have been
transferred, to
the | ||||||
20 | extent the average outstanding balance of | ||||||
21 | loans from that corporation
to members of its | ||||||
22 | affiliated group during the taxable year do not | ||||||
23 | exceed
the limitation amount for that | ||||||
24 | corporation. The "limitation amount" for a
| ||||||
25 | corporation is the average outstanding | ||||||
26 | balances during the taxable year of
customer |
| |||||||
| |||||||
1 | receivables (within the meaning of item (i)) | ||||||
2 | originated by
all members of the affiliated | ||||||
3 | group.
If the average outstanding balances of | ||||||
4 | the
loans made by a corporation to members of | ||||||
5 | its affiliated group exceed the
limitation | ||||||
6 | amount, the interest income of that | ||||||
7 | corporation from qualifying
loans shall be | ||||||
8 | equal to its interest income from loans to | ||||||
9 | members of its
affiliated groups times a | ||||||
10 | fraction equal to the limitation amount | ||||||
11 | divided by
the average outstanding balances of | ||||||
12 | the loans made by that corporation to
members | ||||||
13 | of its affiliated group;
| ||||||
14 | (c) the total of all shareholder's equity | ||||||
15 | (including, without
limitation,
paid-in
| ||||||
16 | capital on common and preferred stock and | ||||||
17 | retained earnings) of the
corporation plus the | ||||||
18 | total of all of its loans, advances, and other
| ||||||
19 | obligations payable or owed to members of its | ||||||
20 | affiliated group may not
exceed 20% of the | ||||||
21 | total assets of the corporation at any time | ||||||
22 | during the tax
year; and
| ||||||
23 | (d) more than 50% of all interest-bearing | ||||||
24 | obligations of the
affiliated group payable to | ||||||
25 | persons outside the group determined in | ||||||
26 | accordance
with generally accepted accounting |
| |||||||
| |||||||
1 | principles must be obligations of the
| ||||||
2 | corporation.
| ||||||
3 | This amendatory Act of the 91st General Assembly is | ||||||
4 | declaratory of
existing
law.
| ||||||
5 | (D) Subparagraphs
(B) and (C) of this paragraph are | ||||||
6 | declaratory of
existing law and apply retroactively, | ||||||
7 | for all tax years beginning on or before
December 31, | ||||||
8 | 1996,
to all original returns, to all amended returns | ||||||
9 | filed no later than 30
days after the effective date of | ||||||
10 | this amendatory Act of 1996, and to all
notices issued | ||||||
11 | on or before the effective date of this amendatory Act | ||||||
12 | of 1996
under subsection (a) of Section 903, subsection | ||||||
13 | (a) of Section 904,
subsection (e) of Section 909, or | ||||||
14 | Section 912.
A taxpayer that is a "financial | ||||||
15 | organization" that engages in any transaction
with an | ||||||
16 | affiliate shall be a "financial organization" for all | ||||||
17 | purposes of this
Act.
| ||||||
18 | (E) For all tax years beginning on or
before | ||||||
19 | December 31, 1996, a taxpayer that falls within the | ||||||
20 | definition
of a
"financial organization" under | ||||||
21 | subparagraphs (B) or (C) of this paragraph, but
who | ||||||
22 | does
not fall within the definition of a "financial | ||||||
23 | organization" under the Proposed
Regulations issued by | ||||||
24 | the Department of Revenue on July 19, 1996, may
| ||||||
25 | irrevocably elect to apply the Proposed Regulations | ||||||
26 | for all of those years as
though the Proposed |
| |||||||
| |||||||
1 | Regulations had been lawfully promulgated, adopted, | ||||||
2 | and in
effect for all of those years. For purposes of | ||||||
3 | applying subparagraphs (B) or
(C) of
this
paragraph to | ||||||
4 | all of those years, the election allowed by this | ||||||
5 | subparagraph
applies only to the taxpayer making the | ||||||
6 | election and to those members of the
taxpayer's unitary | ||||||
7 | business group who are ordinarily required to | ||||||
8 | apportion
business income under the same subsection of | ||||||
9 | Section 304 of this Act as the
taxpayer making the | ||||||
10 | election. No election allowed by this subparagraph | ||||||
11 | shall
be made under a claim
filed under subsection (d) | ||||||
12 | of Section 909 more than 30 days after the
effective | ||||||
13 | date of this amendatory Act of 1996.
| ||||||
14 | (F) Finance Leases. For purposes of this | ||||||
15 | subsection, a finance lease
shall be treated as a loan | ||||||
16 | or other extension of credit, rather than as a
lease,
| ||||||
17 | regardless of how the transaction is characterized for | ||||||
18 | any other purpose,
including the purposes of any | ||||||
19 | regulatory agency to which the lessor is subject.
A | ||||||
20 | finance lease is any transaction in the form of a lease | ||||||
21 | in which the lessee
is treated as the owner of the | ||||||
22 | leased asset entitled to any deduction for
| ||||||
23 | depreciation allowed under Section 167 of the Internal | ||||||
24 | Revenue Code.
| ||||||
25 | (9) Fiscal year. The term "fiscal year" means an | ||||||
26 | accounting period of
12 months ending on the last day of |
| |||||||
| |||||||
1 | any month other than December.
| ||||||
2 | (9.5) Fixed place of business. The term "fixed place of | ||||||
3 | business" has the same meaning as that term is given in | ||||||
4 | Section 864 of the Internal Revenue Code and the related | ||||||
5 | Treasury regulations.
| ||||||
6 | (10) Includes and including. The terms "includes" and | ||||||
7 | "including" when
used in a definition contained in this Act | ||||||
8 | shall not be deemed to exclude
other things otherwise | ||||||
9 | within the meaning of the term defined.
| ||||||
10 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
11 | Code" means the
United States Internal Revenue Code of 1954 | ||||||
12 | or any successor law or laws
relating to federal income | ||||||
13 | taxes in effect for the taxable year.
| ||||||
14 | (11.5) Investment partnership. | ||||||
15 | (A) The term "investment partnership" means any | ||||||
16 | entity that is treated as a partnership for federal | ||||||
17 | income tax purposes that meets the following | ||||||
18 | requirements: | ||||||
19 | (i) no less than 90% of the partnership's cost | ||||||
20 | of its total assets consists of qualifying | ||||||
21 | investment securities, deposits at banks or other | ||||||
22 | financial institutions, and office space and | ||||||
23 | equipment reasonably necessary to carry on its | ||||||
24 | activities as an investment partnership; | ||||||
25 | (ii) no less than 90% of its gross income | ||||||
26 | consists of interest, dividends, and gains from |
| |||||||
| |||||||
1 | the sale or exchange of qualifying investment | ||||||
2 | securities; and
| ||||||
3 | (iii) the partnership is not a dealer in | ||||||
4 | qualifying investment securities. | ||||||
5 | (B) For purposes of this paragraph (11.5), the term | ||||||
6 | "qualifying investment securities" includes all of the | ||||||
7 | following:
| ||||||
8 | (i) common stock, including preferred or debt | ||||||
9 | securities convertible into common stock, and | ||||||
10 | preferred stock; | ||||||
11 | (ii) bonds, debentures, and other debt | ||||||
12 | securities; | ||||||
13 | (iii) foreign and domestic currency deposits | ||||||
14 | secured by federal, state, or local governmental | ||||||
15 | agencies; | ||||||
16 | (iv) mortgage or asset-backed securities | ||||||
17 | secured by federal, state, or local governmental | ||||||
18 | agencies; | ||||||
19 | (v) repurchase agreements and loan | ||||||
20 | participations; | ||||||
21 | (vi) foreign currency exchange contracts and | ||||||
22 | forward and futures contracts on foreign | ||||||
23 | currencies; | ||||||
24 | (vii) stock and bond index securities and | ||||||
25 | futures contracts and other similar financial | ||||||
26 | securities and futures contracts on those |
| |||||||
| |||||||
1 | securities;
| ||||||
2 | (viii) options for the purchase or sale of any | ||||||
3 | of the securities, currencies, contracts, or | ||||||
4 | financial instruments described in items (i) to | ||||||
5 | (vii), inclusive;
| ||||||
6 | (ix) regulated futures contracts;
| ||||||
7 | (x) commodities (not described in Section | ||||||
8 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
9 | futures, forwards, and options with respect to | ||||||
10 | such commodities, provided, however, that any item | ||||||
11 | of a physical commodity to which title is actually | ||||||
12 | acquired in the partnership's capacity as a dealer | ||||||
13 | in such commodity shall not be a qualifying | ||||||
14 | investment security;
| ||||||
15 | (xi) derivatives; and
| ||||||
16 | (xii) a partnership interest in another | ||||||
17 | partnership that is an investment partnership.
| ||||||
18 | (12) Mathematical error. The term "mathematical error" | ||||||
19 | includes the
following types of errors, omissions, or | ||||||
20 | defects in a return filed by a
taxpayer which prevents | ||||||
21 | acceptance of the return as filed for processing:
| ||||||
22 | (A) arithmetic errors or incorrect computations on | ||||||
23 | the return or
supporting schedules;
| ||||||
24 | (B) entries on the wrong lines;
| ||||||
25 | (C) omission of required supporting forms or | ||||||
26 | schedules or the omission
of the information in whole |
| |||||||
| |||||||
1 | or in part called for thereon; and
| ||||||
2 | (D) an attempt to claim, exclude, deduct, or | ||||||
3 | improperly report, in a
manner
directly contrary to the | ||||||
4 | provisions of the Act and regulations thereunder
any | ||||||
5 | item of income, exemption, deduction, or credit.
| ||||||
6 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
7 | means all income
other than business income or | ||||||
8 | compensation.
| ||||||
9 | (14) Nonresident. The term "nonresident" means a | ||||||
10 | person who is not a
resident.
| ||||||
11 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
12 | "incurred" and
"accrued"
shall be construed according to | ||||||
13 | the method of accounting upon the basis
of which the | ||||||
14 | person's base income is computed under this Act.
| ||||||
15 | (16) Partnership and partner. The term "partnership" | ||||||
16 | includes a syndicate,
group, pool, joint venture or other | ||||||
17 | unincorporated organization, through
or by means of which | ||||||
18 | any business, financial operation, or venture is carried
| ||||||
19 | on, and which is not, within the meaning of this Act, a | ||||||
20 | trust or estate
or a corporation; and the term "partner" | ||||||
21 | includes a member in such syndicate,
group, pool, joint | ||||||
22 | venture or organization.
| ||||||
23 | The term "partnership" includes any entity, including | ||||||
24 | a limited
liability company formed under the Illinois
| ||||||
25 | Limited Liability Company Act, classified as a partnership | ||||||
26 | for federal income tax purposes.
|
| |||||||
| |||||||
1 | The term "partnership" does not include a syndicate, | ||||||
2 | group, pool,
joint venture, or other unincorporated | ||||||
3 | organization established for the
sole purpose of playing | ||||||
4 | the Illinois State Lottery.
| ||||||
5 | (17) Part-year resident. The term "part-year resident" | ||||||
6 | means an individual
who became a resident during the | ||||||
7 | taxable year or ceased to be a resident
during the taxable | ||||||
8 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
9 | with presence in this State for other than a temporary or | ||||||
10 | transitory
purpose and ceases with absence from this State | ||||||
11 | for other than a temporary or
transitory purpose. Under | ||||||
12 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
13 | establishment of domicile in this State and ceases with the
| ||||||
14 | establishment of domicile in another State.
| ||||||
15 | (18) Person. The term "person" shall be construed to | ||||||
16 | mean and include
an individual, a trust, estate, | ||||||
17 | partnership, association, firm, company,
corporation, | ||||||
18 | limited liability company, or fiduciary. For purposes of | ||||||
19 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
20 | individual, (ii) a
corporation, (iii) an officer, agent, or | ||||||
21 | employee of a
corporation, (iv) a member, agent or employee | ||||||
22 | of a partnership, or (v)
a member,
manager, employee, | ||||||
23 | officer, director, or agent of a limited liability company
| ||||||
24 | who in such capacity commits an offense specified in | ||||||
25 | Section 1301 and 1302.
| ||||||
26 | (18A) Records. The term "records" includes all data |
| |||||||
| |||||||
1 | maintained by the
taxpayer, whether on paper, microfilm, | ||||||
2 | microfiche, or any type of
machine-sensible data | ||||||
3 | compilation.
| ||||||
4 | (19) Regulations. The term "regulations" includes | ||||||
5 | rules promulgated and
forms prescribed by the Department.
| ||||||
6 | (20) Resident. The term "resident" means:
| ||||||
7 | (A) an individual (i) who is
in this State for | ||||||
8 | other than a temporary or transitory purpose during the
| ||||||
9 | taxable year; or (ii) who is domiciled in this State | ||||||
10 | but is absent from
the State for a temporary or | ||||||
11 | transitory purpose during the taxable year;
| ||||||
12 | (B) The estate of a decedent who at his or her | ||||||
13 | death was domiciled in
this
State;
| ||||||
14 | (C) A trust created by a will of a decedent who at | ||||||
15 | his death was
domiciled
in this State; and
| ||||||
16 | (D) An irrevocable trust, the grantor of which was | ||||||
17 | domiciled in this
State
at the time such trust became | ||||||
18 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
19 | shall be considered irrevocable to the extent that the | ||||||
20 | grantor is
not treated as the owner thereof under | ||||||
21 | Sections 671 through 678 of the Internal
Revenue Code.
| ||||||
22 | (21) Sales. The term "sales" means all gross receipts | ||||||
23 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
24 | 303.
| ||||||
25 | (22) State. The term "state" when applied to a | ||||||
26 | jurisdiction other than
this State means any state of the |
| |||||||
| |||||||
1 | United States, the District of Columbia,
the Commonwealth | ||||||
2 | of Puerto Rico, any Territory or Possession of the United
| ||||||
3 | States, and any foreign country, or any political | ||||||
4 | subdivision of any of the
foregoing. For purposes of the | ||||||
5 | foreign tax credit under Section 601, the
term "state" | ||||||
6 | means any state of the United States, the District of | ||||||
7 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
8 | territory or possession of the
United States, or any | ||||||
9 | political subdivision of any of the foregoing,
effective | ||||||
10 | for tax years ending on or after December 31, 1989.
| ||||||
11 | (23) Taxable year. The term "taxable year" means the | ||||||
12 | calendar year, or
the fiscal year ending during such | ||||||
13 | calendar year, upon the basis of which
the base income is | ||||||
14 | computed under this Act. "Taxable year" means, in the
case | ||||||
15 | of a return made for a fractional part of a year under the | ||||||
16 | provisions
of this Act, the period for which such return is | ||||||
17 | made.
| ||||||
18 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
19 | subject to the tax
imposed by this Act.
| ||||||
20 | (25) International banking facility. The term | ||||||
21 | international banking
facility shall have the same meaning | ||||||
22 | as is set forth in the Illinois Banking
Act or as is set | ||||||
23 | forth in the laws of the United States or regulations of
| ||||||
24 | the Board of Governors of the Federal Reserve System.
| ||||||
25 | (26) Income Tax Return Preparer.
| ||||||
26 | (A) The term "income tax return preparer"
means any |
| |||||||
| |||||||
1 | person who prepares for compensation, or who employs | ||||||
2 | one or more
persons to prepare for compensation, any | ||||||
3 | return of tax imposed by this Act
or any claim for | ||||||
4 | refund of tax imposed by this Act. The preparation of a
| ||||||
5 | substantial portion of a return or claim for refund | ||||||
6 | shall be treated as
the preparation of that return or | ||||||
7 | claim for refund.
| ||||||
8 | (B) A person is not an income tax return preparer | ||||||
9 | if all he or she does
is
| ||||||
10 | (i) furnish typing, reproducing, or other | ||||||
11 | mechanical assistance;
| ||||||
12 | (ii) prepare returns or claims for refunds for | ||||||
13 | the employer by whom he
or she is regularly and | ||||||
14 | continuously employed;
| ||||||
15 | (iii) prepare as a fiduciary returns or claims | ||||||
16 | for refunds for any
person; or
| ||||||
17 | (iv) prepare claims for refunds for a taxpayer | ||||||
18 | in response to any
notice
of deficiency issued to | ||||||
19 | that taxpayer or in response to any waiver of
| ||||||
20 | restriction after the commencement of an audit of | ||||||
21 | that taxpayer or of another
taxpayer if a | ||||||
22 | determination in the audit of the other taxpayer | ||||||
23 | directly or
indirectly affects the tax liability | ||||||
24 | of the taxpayer whose claims he or she is
| ||||||
25 | preparing.
| ||||||
26 | (27) Unitary business group. |
| |||||||
| |||||||
1 | (A) The term "unitary business group" means
a group | ||||||
2 | of persons related through common ownership whose | ||||||
3 | business activities
are integrated with, dependent | ||||||
4 | upon and contribute to each other. The group
will not | ||||||
5 | include those members whose business activity outside | ||||||
6 | the United
States is 80% or more of any such member's | ||||||
7 | total business activity; for
purposes of this | ||||||
8 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
9 | business
activity within the United States shall be | ||||||
10 | measured by means of the factors
ordinarily applicable | ||||||
11 | under subsections (a), (b), (c), (d), or (h)
of Section
| ||||||
12 | 304 except that, in the case of members ordinarily | ||||||
13 | required to apportion
business income by means of the 3 | ||||||
14 | factor formula of property, payroll and sales
| ||||||
15 | specified in subsection (a) of Section 304, including | ||||||
16 | the
formula as weighted in subsection (h) of Section | ||||||
17 | 304, such members shall
not use the sales factor in the | ||||||
18 | computation and the results of the property
and payroll | ||||||
19 | factor computations of subsection (a) of Section 304 | ||||||
20 | shall be
divided by 2 (by one if either
the property or | ||||||
21 | payroll factor has a denominator of zero). The | ||||||
22 | computation
required by the preceding sentence shall, | ||||||
23 | in each case, involve the division of
the member's | ||||||
24 | property, payroll, or revenue miles in the United | ||||||
25 | States,
insurance premiums on property or risk in the | ||||||
26 | United States, or financial
organization business |
| |||||||
| |||||||
1 | income from sources within the United States, as the
| ||||||
2 | case may be, by the respective worldwide figures for | ||||||
3 | such items. Common
ownership in the case of | ||||||
4 | corporations is the direct or indirect control or
| ||||||
5 | ownership of more than 50% of the outstanding voting | ||||||
6 | stock of the persons
carrying on unitary business | ||||||
7 | activity. Unitary business activity can
ordinarily be | ||||||
8 | illustrated where the activities of the members are: | ||||||
9 | (1) in the
same general line (such as manufacturing, | ||||||
10 | wholesaling, retailing of tangible
personal property, | ||||||
11 | insurance, transportation or finance); or (2) are | ||||||
12 | steps in a
vertically structured enterprise or process | ||||||
13 | (such as the steps involved in the
production of | ||||||
14 | natural resources, which might include exploration, | ||||||
15 | mining,
refining, and marketing); and, in either | ||||||
16 | instance, the members are functionally
integrated | ||||||
17 | through the exercise of strong centralized management | ||||||
18 | (where, for
example, authority over such matters as | ||||||
19 | purchasing, financing, tax compliance,
product line, | ||||||
20 | personnel, marketing and capital investment is not | ||||||
21 | left to each
member).
| ||||||
22 | (B) In no event, for taxable years ending prior to | ||||||
23 | December 31, 2017, shall any
unitary business group | ||||||
24 | include members
which are ordinarily required to | ||||||
25 | apportion business income under different
subsections | ||||||
26 | of Section 304 except that for tax years ending on or |
| |||||||
| |||||||
1 | after
December 31, 1987 this prohibition shall not | ||||||
2 | apply to a holding company that would otherwise be a | ||||||
3 | member of a unitary business group with taxpayers that | ||||||
4 | apportion business income under any of subsections | ||||||
5 | (b), (c), (c-1), or (d) of Section 304. If a unitary | ||||||
6 | business
group would, but for the preceding sentence, | ||||||
7 | include members that are
ordinarily required to | ||||||
8 | apportion business income under different subsections | ||||||
9 | of
Section 304, then for each subsection of Section 304 | ||||||
10 | for which there are two or
more members, there shall be | ||||||
11 | a separate unitary business group composed of such
| ||||||
12 | members. For purposes of the preceding two sentences, a | ||||||
13 | member is "ordinarily
required to apportion business | ||||||
14 | income" under a particular subsection of Section
304 if | ||||||
15 | it would be required to use the apportionment method | ||||||
16 | prescribed by such
subsection except for the fact that | ||||||
17 | it derives business income solely from
Illinois. As | ||||||
18 | used in this paragraph, for taxable years ending before | ||||||
19 | December 31, 2017, the phrase "United States" means | ||||||
20 | only the 50 states and the District of Columbia, but | ||||||
21 | does not include any territory or possession of the | ||||||
22 | United States or any area over which the United States | ||||||
23 | has asserted jurisdiction or claimed exclusive rights | ||||||
24 | with respect to the exploration for or exploitation of | ||||||
25 | natural resources.
For taxable years ending on or after | ||||||
26 | December 31, 2017, the phrase "United States", as used |
| |||||||
| |||||||
1 | in this paragraph, means only the 50 states, the | ||||||
2 | District of Columbia, and any area over which the | ||||||
3 | United States has asserted jurisdiction or claimed | ||||||
4 | exclusive rights with respect to the exploration for or | ||||||
5 | exploitation of natural resources, but does not | ||||||
6 | include any territory or possession of the United | ||||||
7 | States. | ||||||
8 | (C) Holding companies. | ||||||
9 | (i) For purposes of this subparagraph, a | ||||||
10 | "holding company" is a corporation (other than a | ||||||
11 | corporation that is a financial organization under | ||||||
12 | paragraph (8) of this subsection (a) of Section | ||||||
13 | 1501 because it is a bank holding company under the | ||||||
14 | provisions of the Bank Holding Company Act of 1956 | ||||||
15 | (12 U.S.C. 1841, et seq.) or because it is owned by | ||||||
16 | a bank or a bank holding company) that owns a | ||||||
17 | controlling interest in one or more other | ||||||
18 | taxpayers ("controlled taxpayers"); that, during | ||||||
19 | the period that includes the taxable year and the 2 | ||||||
20 | immediately preceding taxable years or, if the | ||||||
21 | corporation was formed during the current or | ||||||
22 | immediately preceding taxable year, the taxable | ||||||
23 | years in which the corporation has been in | ||||||
24 | existence, derived substantially all its gross | ||||||
25 | income from dividends, interest, rents, royalties, | ||||||
26 | fees or other charges received from controlled |
| |||||||
| |||||||
1 | taxpayers for the provision of services, and gains | ||||||
2 | on the sale or other disposition of interests in | ||||||
3 | controlled taxpayers or in property leased or | ||||||
4 | licensed to controlled taxpayers or used by the | ||||||
5 | taxpayer in providing services to controlled | ||||||
6 | taxpayers; and that incurs no substantial expenses | ||||||
7 | other than expenses (including interest and other | ||||||
8 | costs of borrowing) incurred in connection with | ||||||
9 | the acquisition and holding of interests in | ||||||
10 | controlled taxpayers and in the provision of | ||||||
11 | services to controlled taxpayers or in the leasing | ||||||
12 | or licensing of property to controlled taxpayers. | ||||||
13 | (ii) The income of a holding company which is a | ||||||
14 | member of more than one unitary business group | ||||||
15 | shall be included in each unitary business group of | ||||||
16 | which it is a member on a pro rata basis, by | ||||||
17 | including in each unitary business group that | ||||||
18 | portion of the base income of the holding company | ||||||
19 | that bears the same proportion to the total base | ||||||
20 | income of the holding company as the gross receipts | ||||||
21 | of the unitary business group bears to the combined | ||||||
22 | gross receipts of all unitary business groups (in | ||||||
23 | both cases without regard to the holding company) | ||||||
24 | or on any other reasonable basis, consistently | ||||||
25 | applied. | ||||||
26 | (iii) A holding company shall apportion its |
| |||||||
| |||||||
1 | business income under the subsection of Section | ||||||
2 | 304 used by the other members of its unitary | ||||||
3 | business group. The apportionment factors of a | ||||||
4 | holding company which would be a member of more | ||||||
5 | than one unitary business group shall be included | ||||||
6 | with the apportionment factors of each unitary | ||||||
7 | business group of which it is a member on a pro | ||||||
8 | rata basis using the same method used in clause | ||||||
9 | (ii). | ||||||
10 | (iv) The provisions of this subparagraph (C) | ||||||
11 | are intended to clarify existing law. | ||||||
12 | (D) If including the base income and factors of a | ||||||
13 | holding company in more than one unitary business group | ||||||
14 | under subparagraph (C) does not fairly reflect the | ||||||
15 | degree of integration between the holding company and | ||||||
16 | one or more of the unitary business groups, the | ||||||
17 | dependence of the holding company and one or more of | ||||||
18 | the unitary business groups upon each other, or the | ||||||
19 | contributions between the holding company and one or | ||||||
20 | more of the unitary business groups, the holding | ||||||
21 | company may petition the Director, under the | ||||||
22 | procedures provided under Section 304(f), for | ||||||
23 | permission to include all base income and factors of | ||||||
24 | the holding company only with members of a unitary | ||||||
25 | business group apportioning their business income | ||||||
26 | under one subsection of subsections (a), (b), (c), or |
| |||||||
| |||||||
1 | (d) of Section 304. If the petition is granted, the | ||||||
2 | holding company shall be included in a unitary business | ||||||
3 | group only with persons apportioning their business | ||||||
4 | income under the selected subsection of Section 304 | ||||||
5 | until the Director grants a petition of the holding | ||||||
6 | company either to be included in more than one unitary | ||||||
7 | business group under subparagraph (C) or to include its | ||||||
8 | base income and factors only with members of a unitary | ||||||
9 | business group apportioning their business income | ||||||
10 | under a different subsection of Section 304. | ||||||
11 | (E) If the unitary business group members' | ||||||
12 | accounting periods differ,
the common parent's | ||||||
13 | accounting period or, if there is no common parent, the
| ||||||
14 | accounting period of the member that is expected to | ||||||
15 | have, on a recurring basis,
the greatest Illinois | ||||||
16 | income tax liability must be used to determine whether | ||||||
17 | to
use the apportionment method provided in subsection | ||||||
18 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
19 | against membership in a unitary business group for | ||||||
20 | taxpayers
ordinarily required to apportion income | ||||||
21 | under different subsections of Section
304 does not | ||||||
22 | apply to taxpayers required to apportion income under | ||||||
23 | subsection
(a) and subsection (h) of Section
304. The | ||||||
24 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
25 | years ending on or after December 31, 1998.
| ||||||
26 | (28) Subchapter S corporation. The term "Subchapter S |
| |||||||
| |||||||
1 | corporation"
means a corporation for which there is in | ||||||
2 | effect an election under Section
1362 of the Internal | ||||||
3 | Revenue Code, or for which there is a federal election
to | ||||||
4 | opt out of the provisions of the Subchapter S Revision Act | ||||||
5 | of 1982 and
have applied instead the prior federal | ||||||
6 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
7 | (30) Foreign person. The term "foreign person" means | ||||||
8 | any person who is a nonresident alien individual and any | ||||||
9 | nonindividual entity, regardless of where created or | ||||||
10 | organized, whose business activity outside the United | ||||||
11 | States is 80% or more of the entity's total business | ||||||
12 | activity.
| ||||||
13 | (b) Other definitions.
| ||||||
14 | (1) Words denoting number, gender, and so forth,
when | ||||||
15 | used in this Act, where not otherwise distinctly expressed | ||||||
16 | or manifestly
incompatible with the intent thereof:
| ||||||
17 | (A) Words importing the singular include and apply | ||||||
18 | to several persons,
parties or things;
| ||||||
19 | (B) Words importing the plural include the | ||||||
20 | singular; and
| ||||||
21 | (C) Words importing the masculine gender include | ||||||
22 | the feminine as well.
| ||||||
23 | (2) "Company" or "association" as including successors | ||||||
24 | and assigns. The
word "company" or "association", when used | ||||||
25 | in reference to a corporation,
shall be deemed to embrace |
| |||||||
| |||||||
1 | the words "successors and assigns of such company
or | ||||||
2 | association", and in like manner as if these last-named | ||||||
3 | words, or words
of similar import, were expressed.
| ||||||
4 | (3) Other terms. Any term used in any Section of this | ||||||
5 | Act with respect
to the application of, or in connection | ||||||
6 | with, the provisions of any other
Section of this Act shall | ||||||
7 | have the same meaning as in such other Section.
| ||||||
8 | (Source: P.A. 99-213, eff. 7-31-15.)
| ||||||
9 | Section 10. The Use Tax Act is amended by changing Section | ||||||
10 | 9 as follows:
| ||||||
11 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
12 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
13 | and
trailers that are required to be registered with an agency | ||||||
14 | of this State,
each retailer
required or authorized to collect | ||||||
15 | the tax imposed by this Act shall pay
to the Department the | ||||||
16 | amount of such tax (except as otherwise provided)
at the time | ||||||
17 | when he is required to file his return for the period during
| ||||||
18 | which such tax was collected, less the vendor discount amount a | ||||||
19 | discount of 2.1% prior to
January 1, 1990, and 1.75% on and | ||||||
20 | after January 1, 1990, or $5 per calendar
year, whichever is | ||||||
21 | greater , which is allowed to reimburse the retailer
for | ||||||
22 | expenses incurred in collecting the tax, keeping records, | ||||||
23 | preparing
and filing returns, remitting the tax and supplying | ||||||
24 | data to the
Department on request. On and after January 1, 1990 |
| |||||||
| |||||||
1 | and prior to January 1, 2018, the vendor discount amount shall | ||||||
2 | be 1.75% or $5 per calendar
year, whichever is greater. On and | ||||||
3 | after January 1, 2018, the vendor discount amount shall be the | ||||||
4 | sum of (i) 1.75% of the first $1,000 collected during the | ||||||
5 | calendar year and (ii) 1% of the amount of proceeds collected | ||||||
6 | during the calendar year that exceeds $1,000; however, on and | ||||||
7 | after January 1, 2018, in no event shall the discount allowed | ||||||
8 | to any vendor be less than $5 in any calendar year or more than | ||||||
9 | $1,500 in any calendar year. In the case of retailers who | ||||||
10 | report and pay the
tax on a transaction by transaction basis, | ||||||
11 | as provided in this Section,
such discount shall be taken with | ||||||
12 | each such tax remittance instead of
when such retailer files | ||||||
13 | his periodic return. The Department may disallow the discount | ||||||
14 | for retailers whose certificate of registration is revoked at | ||||||
15 | the time the return is filed, but only if the Department's | ||||||
16 | decision to revoke the certificate of registration has become | ||||||
17 | final. A retailer need not remit
that part of any tax collected | ||||||
18 | by him to the extent that he is required
to remit and does | ||||||
19 | remit the tax imposed by the Retailers' Occupation
Tax Act, | ||||||
20 | with respect to the sale of the same property. | ||||||
21 | Where such tangible personal property is sold under a | ||||||
22 | conditional
sales contract, or under any other form of sale | ||||||
23 | wherein the payment of
the principal sum, or a part thereof, is | ||||||
24 | extended beyond the close of
the period for which the return is | ||||||
25 | filed, the retailer, in collecting
the tax (except as to motor | ||||||
26 | vehicles, watercraft, aircraft, and
trailers that are required |
| |||||||
| |||||||
1 | to be registered with an agency of this State),
may collect for | ||||||
2 | each
tax return period, only the tax applicable to that part of | ||||||
3 | the selling
price actually received during such tax return | ||||||
4 | period. | ||||||
5 | Except as provided in this Section, on or before the | ||||||
6 | twentieth day of each
calendar month, such retailer shall file | ||||||
7 | a return for the preceding
calendar month. Such return shall be | ||||||
8 | filed on forms prescribed by the
Department and shall furnish | ||||||
9 | such information as the Department may
reasonably require. | ||||||
10 | The Department may require returns to be filed on a | ||||||
11 | quarterly basis.
If so required, a return for each calendar | ||||||
12 | quarter shall be filed on or
before the twentieth day of the | ||||||
13 | calendar month following the end of such
calendar quarter. The | ||||||
14 | taxpayer shall also file a return with the
Department for each | ||||||
15 | of the first two months of each calendar quarter, on or
before | ||||||
16 | the twentieth day of the following calendar month, stating: | ||||||
17 | 1. The name of the seller; | ||||||
18 | 2. The address of the principal place of business from | ||||||
19 | which he engages
in the business of selling tangible | ||||||
20 | personal property at retail in this State; | ||||||
21 | 3. The total amount of taxable receipts received by him | ||||||
22 | during the
preceding calendar month from sales of tangible | ||||||
23 | personal property by him
during such preceding calendar | ||||||
24 | month, including receipts from charge and
time sales, but | ||||||
25 | less all deductions allowed by law; | ||||||
26 | 4. The amount of credit provided in Section 2d of this |
| |||||||
| |||||||
1 | Act; | ||||||
2 | 5. The amount of tax due; | ||||||
3 | 5-5. The signature of the taxpayer; and | ||||||
4 | 6. Such other reasonable information as the Department | ||||||
5 | may
require. | ||||||
6 | If a taxpayer fails to sign a return within 30 days after | ||||||
7 | the proper notice
and demand for signature by the Department, | ||||||
8 | the return shall be considered
valid and any amount shown to be | ||||||
9 | due on the return shall be deemed assessed. | ||||||
10 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
11 | monthly tax
liability of $150,000 or more shall make all | ||||||
12 | payments required by rules of the
Department by electronic | ||||||
13 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
14 | an average monthly tax liability of $100,000 or more shall make | ||||||
15 | all
payments required by rules of the Department by electronic | ||||||
16 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
17 | an average monthly tax liability
of $50,000 or more shall make | ||||||
18 | all payments required by rules of the Department
by electronic | ||||||
19 | funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||||||
20 | an annual tax liability of $200,000 or more shall make all | ||||||
21 | payments required by
rules of the Department by electronic | ||||||
22 | funds transfer. The term "annual tax
liability" shall be the | ||||||
23 | sum of the taxpayer's liabilities under this Act, and
under all | ||||||
24 | other State and local occupation and use tax laws administered | ||||||
25 | by the
Department, for the immediately preceding calendar year. | ||||||
26 | The term "average
monthly tax liability" means
the sum of the |
| |||||||
| |||||||
1 | taxpayer's liabilities under this Act, and under all other | ||||||
2 | State
and local occupation and use tax laws administered by the | ||||||
3 | Department, for the
immediately preceding calendar year | ||||||
4 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
5 | a tax liability in the
amount set forth in subsection (b) of | ||||||
6 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
7 | all payments required by rules of the Department by
electronic | ||||||
8 | funds transfer. | ||||||
9 | Before August 1 of each year beginning in 1993, the | ||||||
10 | Department shall notify
all taxpayers required to make payments | ||||||
11 | by electronic funds transfer. All
taxpayers required to make | ||||||
12 | payments by electronic funds transfer shall make
those payments | ||||||
13 | for a minimum of one year beginning on October 1. | ||||||
14 | Any taxpayer not required to make payments by electronic | ||||||
15 | funds transfer may
make payments by electronic funds transfer | ||||||
16 | with the permission of the
Department. | ||||||
17 | All taxpayers required to make payment by electronic funds | ||||||
18 | transfer and any
taxpayers authorized to voluntarily make | ||||||
19 | payments by electronic funds transfer
shall make those payments | ||||||
20 | in the manner authorized by the Department. | ||||||
21 | The Department shall adopt such rules as are necessary to | ||||||
22 | effectuate a
program of electronic funds transfer and the | ||||||
23 | requirements of this Section. | ||||||
24 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
25 | tax liability
to the Department
under this Act, the Retailers' | ||||||
26 | Occupation Tax Act, the Service
Occupation Tax Act, the Service |
| |||||||
| |||||||
1 | Use Tax Act was $10,000 or more
during
the preceding 4 complete | ||||||
2 | calendar quarters, he shall file a return with the
Department | ||||||
3 | each month by the 20th day of the month next following the | ||||||
4 | month
during which such tax liability is incurred and shall | ||||||
5 | make payments to the
Department on or before the 7th, 15th, | ||||||
6 | 22nd and last day of the month
during which such liability is | ||||||
7 | incurred.
On and after October 1, 2000, if the taxpayer's | ||||||
8 | average monthly tax liability
to the Department under this Act, | ||||||
9 | the Retailers' Occupation Tax Act,
the
Service Occupation Tax | ||||||
10 | Act, and the Service Use Tax Act was $20,000 or more
during the | ||||||
11 | preceding 4 complete calendar quarters, he shall file a return | ||||||
12 | with
the Department each month by the 20th day of the month | ||||||
13 | next following the month
during which such tax liability is | ||||||
14 | incurred and shall make payment to the
Department on or before | ||||||
15 | the 7th, 15th, 22nd and last day of the
month during
which such | ||||||
16 | liability is incurred.
If the month during which such tax
| ||||||
17 | liability is incurred began prior to January 1, 1985, each | ||||||
18 | payment shall be
in an amount equal to 1/4 of the taxpayer's
| ||||||
19 | actual liability for the month or an amount set by the | ||||||
20 | Department not to
exceed 1/4 of the average monthly liability | ||||||
21 | of the taxpayer to the
Department for the preceding 4 complete | ||||||
22 | calendar quarters (excluding the
month of highest liability and | ||||||
23 | the month of lowest liability in such 4
quarter period). If the | ||||||
24 | month during which such tax liability is incurred
begins on or | ||||||
25 | after January 1, 1985, and prior to January 1, 1987, each
| ||||||
26 | payment shall be in an amount equal to 22.5% of the taxpayer's |
| |||||||
| |||||||
1 | actual liability
for the month or 27.5% of the taxpayer's | ||||||
2 | liability for the same calendar
month of the preceding year. If | ||||||
3 | the month during which such tax liability
is incurred begins on | ||||||
4 | or after January 1, 1987, and prior to January 1,
1988, each | ||||||
5 | payment shall be in an amount equal to 22.5% of the taxpayer's
| ||||||
6 | actual liability for the month or 26.25% of the taxpayer's | ||||||
7 | liability for
the same calendar month of the preceding year. If | ||||||
8 | the month during which such
tax liability is incurred begins on | ||||||
9 | or after January 1, 1988, and prior to
January 1, 1989,
or | ||||||
10 | begins on or after January 1, 1996, each payment shall be in an | ||||||
11 | amount equal
to 22.5% of the taxpayer's actual liability for | ||||||
12 | the month or 25% of the
taxpayer's liability for the same | ||||||
13 | calendar month of the preceding year. If the
month during which | ||||||
14 | such tax liability is incurred begins on or after January 1,
| ||||||
15 | 1989,
and prior to January 1, 1996, each payment shall be in an | ||||||
16 | amount equal to 22.5%
of the taxpayer's actual liability for | ||||||
17 | the month or 25% of the taxpayer's
liability for the same | ||||||
18 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
19 | actual liability for the quarter monthly reporting period. The
| ||||||
20 | amount of such quarter monthly payments shall be credited | ||||||
21 | against the final tax
liability
of the taxpayer's return for | ||||||
22 | that month. Before October 1, 2000, once
applicable, the | ||||||
23 | requirement
of the making of quarter monthly payments to the | ||||||
24 | Department shall continue
until such taxpayer's average | ||||||
25 | monthly liability to the Department during
the preceding 4 | ||||||
26 | complete calendar quarters (excluding the month of highest
|
| |||||||
| |||||||
1 | liability and the month of lowest liability) is less than
| ||||||
2 | $9,000, or until
such taxpayer's average monthly liability to | ||||||
3 | the Department as computed for
each calendar quarter of the 4 | ||||||
4 | preceding complete calendar quarter period
is less than | ||||||
5 | $10,000. However, if a taxpayer can show the
Department that
a | ||||||
6 | substantial change in the taxpayer's business has occurred | ||||||
7 | which causes
the taxpayer to anticipate that his average | ||||||
8 | monthly tax liability for the
reasonably foreseeable future | ||||||
9 | will fall below the $10,000 threshold
stated above, then
such | ||||||
10 | taxpayer
may petition the Department for change in such | ||||||
11 | taxpayer's reporting status.
On and after October 1, 2000, once | ||||||
12 | applicable, the requirement of the making
of quarter monthly | ||||||
13 | payments to the Department shall continue until such
taxpayer's | ||||||
14 | average monthly liability to the Department during the | ||||||
15 | preceding 4
complete calendar quarters (excluding the month of | ||||||
16 | highest liability and the
month of lowest liability) is less | ||||||
17 | than $19,000 or until such taxpayer's
average monthly liability | ||||||
18 | to the Department as computed for each calendar
quarter of the | ||||||
19 | 4 preceding complete calendar quarter period is less than
| ||||||
20 | $20,000. However, if a taxpayer can show the Department that a | ||||||
21 | substantial
change in the taxpayer's business has occurred | ||||||
22 | which causes the taxpayer to
anticipate that his average | ||||||
23 | monthly tax liability for the reasonably
foreseeable future | ||||||
24 | will fall below the $20,000 threshold stated above, then
such | ||||||
25 | taxpayer may petition the Department for a change in such | ||||||
26 | taxpayer's
reporting status.
The Department shall change such |
| |||||||
| |||||||
1 | taxpayer's reporting status unless it
finds that such change is | ||||||
2 | seasonal in nature and not likely to be long
term. If any such | ||||||
3 | quarter monthly payment is not paid at the time or in
the | ||||||
4 | amount required by this Section, then the taxpayer shall be | ||||||
5 | liable for
penalties and interest on
the difference between the | ||||||
6 | minimum amount due and the amount of such
quarter monthly | ||||||
7 | payment actually and timely paid, except insofar as the
| ||||||
8 | taxpayer has previously made payments for that month to the | ||||||
9 | Department in
excess of the minimum payments previously due as | ||||||
10 | provided in this Section.
The Department shall make reasonable | ||||||
11 | rules and regulations to govern the
quarter monthly payment | ||||||
12 | amount and quarter monthly payment dates for
taxpayers who file | ||||||
13 | on other than a calendar monthly basis. | ||||||
14 | If any such payment provided for in this Section exceeds | ||||||
15 | the taxpayer's
liabilities under this Act, the Retailers' | ||||||
16 | Occupation Tax Act, the Service
Occupation Tax Act and the | ||||||
17 | Service Use Tax Act, as shown by an original
monthly return, | ||||||
18 | the Department shall issue to the taxpayer a credit
memorandum | ||||||
19 | no later than 30 days after the date of payment, which
| ||||||
20 | memorandum may be submitted by the taxpayer to the Department | ||||||
21 | in payment of
tax liability subsequently to be remitted by the | ||||||
22 | taxpayer to the Department
or be assigned by the taxpayer to a | ||||||
23 | similar taxpayer under this Act, the
Retailers' Occupation Tax | ||||||
24 | Act, the Service Occupation Tax Act or the
Service Use Tax Act, | ||||||
25 | in accordance with reasonable rules and regulations to
be | ||||||
26 | prescribed by the Department, except that if such excess |
| |||||||
| |||||||
1 | payment is
shown on an original monthly return and is made | ||||||
2 | after December 31, 1986, no
credit memorandum shall be issued, | ||||||
3 | unless requested by the taxpayer. If no
such request is made, | ||||||
4 | the taxpayer may credit such excess payment against
tax | ||||||
5 | liability subsequently to be remitted by the taxpayer to the | ||||||
6 | Department
under this Act, the Retailers' Occupation Tax Act, | ||||||
7 | the Service Occupation
Tax Act or the Service Use Tax Act, in | ||||||
8 | accordance with reasonable rules and
regulations prescribed by | ||||||
9 | the Department. If the Department subsequently
determines that | ||||||
10 | all or any part of the credit taken was not actually due to
the | ||||||
11 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
12 | be
reduced by 2.1% or 1.75% of the difference between the | ||||||
13 | credit taken and
that actually due multiplied by the vendor | ||||||
14 | discount amount , and the taxpayer shall be liable for penalties | ||||||
15 | and
interest on such difference. | ||||||
16 | If the retailer is otherwise required to file a monthly | ||||||
17 | return and if the
retailer's average monthly tax liability to | ||||||
18 | the Department
does not exceed $200, the Department may | ||||||
19 | authorize his returns to be
filed on a quarter annual basis, | ||||||
20 | with the return for January, February,
and March of a given | ||||||
21 | year being due by April 20 of such year; with the
return for | ||||||
22 | April, May and June of a given year being due by July 20 of
such | ||||||
23 | year; with the return for July, August and September of a given
| ||||||
24 | year being due by October 20 of such year, and with the return | ||||||
25 | for
October, November and December of a given year being due by | ||||||
26 | January 20
of the following year. |
| |||||||
| |||||||
1 | If the retailer is otherwise required to file a monthly or | ||||||
2 | quarterly
return and if the retailer's average monthly tax | ||||||
3 | liability to the
Department does not exceed $50, the Department | ||||||
4 | may authorize his returns to
be filed on an annual basis, with | ||||||
5 | the return for a given year being due by
January 20 of the | ||||||
6 | following year. | ||||||
7 | Such quarter annual and annual returns, as to form and | ||||||
8 | substance,
shall be subject to the same requirements as monthly | ||||||
9 | returns. | ||||||
10 | Notwithstanding any other provision in this Act concerning | ||||||
11 | the time
within which a retailer may file his return, in the | ||||||
12 | case of any retailer
who ceases to engage in a kind of business | ||||||
13 | which makes him responsible
for filing returns under this Act, | ||||||
14 | such retailer shall file a final
return under this Act with the | ||||||
15 | Department not more than one month after
discontinuing such | ||||||
16 | business. | ||||||
17 | In addition, with respect to motor vehicles, watercraft,
| ||||||
18 | aircraft, and trailers that are required to be registered with | ||||||
19 | an agency of
this State, every
retailer selling this kind of | ||||||
20 | tangible personal property shall file,
with the Department, | ||||||
21 | upon a form to be prescribed and supplied by the
Department, a | ||||||
22 | separate return for each such item of tangible personal
| ||||||
23 | property which the retailer sells, except that if, in the same
| ||||||
24 | transaction, (i) a retailer of aircraft, watercraft, motor | ||||||
25 | vehicles or
trailers transfers more than
one aircraft, | ||||||
26 | watercraft, motor
vehicle or trailer to another aircraft, |
| |||||||
| |||||||
1 | watercraft, motor vehicle or
trailer retailer for the purpose | ||||||
2 | of resale
or (ii) a retailer of aircraft, watercraft, motor | ||||||
3 | vehicles, or trailers
transfers more than one aircraft, | ||||||
4 | watercraft, motor vehicle, or trailer to a
purchaser for use as | ||||||
5 | a qualifying rolling stock as provided in Section 3-55 of
this | ||||||
6 | Act, then
that seller may report the transfer of all the
| ||||||
7 | aircraft, watercraft, motor
vehicles
or trailers involved in | ||||||
8 | that transaction to the Department on the same
uniform
| ||||||
9 | invoice-transaction reporting return form.
For purposes of | ||||||
10 | this Section, "watercraft" means a Class 2, Class 3, or
Class
4 | ||||||
11 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
12 | and Safety Act,
a
personal watercraft, or any boat equipped | ||||||
13 | with an inboard motor. | ||||||
14 | The transaction reporting return in the case of motor | ||||||
15 | vehicles
or trailers that are required to be registered with an | ||||||
16 | agency of this
State, shall
be the same document as the Uniform | ||||||
17 | Invoice referred to in Section 5-402
of the Illinois Vehicle | ||||||
18 | Code and must show the name and address of the
seller; the name | ||||||
19 | and address of the purchaser; the amount of the selling
price | ||||||
20 | including the amount allowed by the retailer for traded-in
| ||||||
21 | property, if any; the amount allowed by the retailer for the | ||||||
22 | traded-in
tangible personal property, if any, to the extent to | ||||||
23 | which Section 2 of
this Act allows an exemption for the value | ||||||
24 | of traded-in property; the
balance payable after deducting such | ||||||
25 | trade-in allowance from the total
selling price; the amount of | ||||||
26 | tax due from the retailer with respect to
such transaction; the |
| |||||||
| |||||||
1 | amount of tax collected from the purchaser by the
retailer on | ||||||
2 | such transaction (or satisfactory evidence that such tax is
not | ||||||
3 | due in that particular instance, if that is claimed to be the | ||||||
4 | fact);
the place and date of the sale; a sufficient | ||||||
5 | identification of the
property sold; such other information as | ||||||
6 | is required in Section 5-402 of
the Illinois Vehicle Code, and | ||||||
7 | such other information as the Department
may reasonably | ||||||
8 | require. | ||||||
9 | The transaction reporting return in the case of watercraft
| ||||||
10 | and aircraft must show
the name and address of the seller; the | ||||||
11 | name and address of the
purchaser; the amount of the selling | ||||||
12 | price including the amount allowed
by the retailer for | ||||||
13 | traded-in property, if any; the amount allowed by
the retailer | ||||||
14 | for the traded-in tangible personal property, if any, to
the | ||||||
15 | extent to which Section 2 of this Act allows an exemption for | ||||||
16 | the
value of traded-in property; the balance payable after | ||||||
17 | deducting such
trade-in allowance from the total selling price; | ||||||
18 | the amount of tax due
from the retailer with respect to such | ||||||
19 | transaction; the amount of tax
collected from the purchaser by | ||||||
20 | the retailer on such transaction (or
satisfactory evidence that | ||||||
21 | such tax is not due in that particular
instance, if that is | ||||||
22 | claimed to be the fact); the place and date of the
sale, a | ||||||
23 | sufficient identification of the property sold, and such other
| ||||||
24 | information as the Department may reasonably require. | ||||||
25 | Such transaction reporting return shall be filed not later | ||||||
26 | than 20
days after the date of delivery of the item that is |
| |||||||
| |||||||
1 | being sold, but may
be filed by the retailer at any time sooner | ||||||
2 | than that if he chooses to
do so. The transaction reporting | ||||||
3 | return and tax remittance or proof of
exemption from the tax | ||||||
4 | that is imposed by this Act may be transmitted to
the | ||||||
5 | Department by way of the State agency with which, or State | ||||||
6 | officer
with whom, the tangible personal property must be | ||||||
7 | titled or registered
(if titling or registration is required) | ||||||
8 | if the Department and such
agency or State officer determine | ||||||
9 | that this procedure will expedite the
processing of | ||||||
10 | applications for title or registration. | ||||||
11 | With each such transaction reporting return, the retailer | ||||||
12 | shall remit
the proper amount of tax due (or shall submit | ||||||
13 | satisfactory evidence that
the sale is not taxable if that is | ||||||
14 | the case), to the Department or its
agents, whereupon the | ||||||
15 | Department shall issue, in the purchaser's name, a
tax receipt | ||||||
16 | (or a certificate of exemption if the Department is
satisfied | ||||||
17 | that the particular sale is tax exempt) which such purchaser
| ||||||
18 | may submit to the agency with which, or State officer with | ||||||
19 | whom, he must
title or register the tangible personal property | ||||||
20 | that is involved (if
titling or registration is required) in | ||||||
21 | support of such purchaser's
application for an Illinois | ||||||
22 | certificate or other evidence of title or
registration to such | ||||||
23 | tangible personal property. | ||||||
24 | No retailer's failure or refusal to remit tax under this | ||||||
25 | Act
precludes a user, who has paid the proper tax to the | ||||||
26 | retailer, from
obtaining his certificate of title or other |
| |||||||
| |||||||
1 | evidence of title or
registration (if titling or registration | ||||||
2 | is required) upon satisfying
the Department that such user has | ||||||
3 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
4 | Department shall adopt appropriate rules to carry out
the | ||||||
5 | mandate of this paragraph. | ||||||
6 | If the user who would otherwise pay tax to the retailer | ||||||
7 | wants the
transaction reporting return filed and the payment of | ||||||
8 | tax or proof of
exemption made to the Department before the | ||||||
9 | retailer is willing to take
these actions and such user has not | ||||||
10 | paid the tax to the retailer, such
user may certify to the fact | ||||||
11 | of such delay by the retailer, and may
(upon the Department | ||||||
12 | being satisfied of the truth of such certification)
transmit | ||||||
13 | the information required by the transaction reporting return
| ||||||
14 | and the remittance for tax or proof of exemption directly to | ||||||
15 | the
Department and obtain his tax receipt or exemption | ||||||
16 | determination, in
which event the transaction reporting return | ||||||
17 | and tax remittance (if a
tax payment was required) shall be | ||||||
18 | credited by the Department to the
proper retailer's account | ||||||
19 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
20 | provided for in this Section being allowed. When the user pays
| ||||||
21 | the tax directly to the Department, he shall pay the tax in the | ||||||
22 | same
amount and in the same form in which it would be remitted | ||||||
23 | if the tax had
been remitted to the Department by the retailer. | ||||||
24 | Where a retailer collects the tax with respect to the | ||||||
25 | selling price
of tangible personal property which he sells and | ||||||
26 | the purchaser
thereafter returns such tangible personal |
| |||||||
| |||||||
1 | property and the retailer
refunds the selling price thereof to | ||||||
2 | the purchaser, such retailer shall
also refund, to the | ||||||
3 | purchaser, the tax so collected from the purchaser.
When filing | ||||||
4 | his return for the period in which he refunds such tax to
the | ||||||
5 | purchaser, the retailer may deduct the amount of the tax so | ||||||
6 | refunded
by him to the purchaser from any other use tax which | ||||||
7 | such retailer may
be required to pay or remit to the | ||||||
8 | Department, as shown by such return,
if the amount of the tax | ||||||
9 | to be deducted was previously remitted to the
Department by | ||||||
10 | such retailer. If the retailer has not previously
remitted the | ||||||
11 | amount of such tax to the Department, he is entitled to no
| ||||||
12 | deduction under this Act upon refunding such tax to the | ||||||
13 | purchaser. | ||||||
14 | Any retailer filing a return under this Section shall also | ||||||
15 | include
(for the purpose of paying tax thereon) the total tax | ||||||
16 | covered by such
return upon the selling price of tangible | ||||||
17 | personal property purchased by
him at retail from a retailer, | ||||||
18 | but as to which the tax imposed by this
Act was not collected | ||||||
19 | from the retailer filing such return, and such
retailer shall | ||||||
20 | remit the amount of such tax to the Department when
filing such | ||||||
21 | return. | ||||||
22 | If experience indicates such action to be practicable, the | ||||||
23 | Department
may prescribe and furnish a combination or joint | ||||||
24 | return which will
enable retailers, who are required to file | ||||||
25 | returns hereunder and also
under the Retailers' Occupation Tax | ||||||
26 | Act, to furnish all the return
information required by both |
| |||||||
| |||||||
1 | Acts on the one form. | ||||||
2 | Where the retailer has more than one business registered | ||||||
3 | with the
Department under separate registration under this Act, | ||||||
4 | such retailer may
not file each return that is due as a single | ||||||
5 | return covering all such
registered businesses, but shall file | ||||||
6 | separate returns for each such
registered business. | ||||||
7 | Beginning January 1, 1990, each month the Department shall | ||||||
8 | pay into the
State and Local Sales Tax Reform Fund, a special | ||||||
9 | fund in the State Treasury
which is hereby created, the net | ||||||
10 | revenue realized for the preceding month
from the 1% tax on | ||||||
11 | sales of food for human consumption which is to be
consumed off | ||||||
12 | the premises where it is sold (other than alcoholic beverages,
| ||||||
13 | soft drinks and food which has been prepared for immediate | ||||||
14 | consumption) and
prescription and nonprescription medicines, | ||||||
15 | drugs, medical appliances, products classified as Class III | ||||||
16 | medical devices by the United States Food and Drug | ||||||
17 | Administration that are used for cancer treatment pursuant to a | ||||||
18 | prescription, as well as any accessories and components related | ||||||
19 | to those devices, and
insulin, urine testing materials, | ||||||
20 | syringes and needles used by diabetics. | ||||||
21 | Beginning January 1, 1990, each month the Department shall | ||||||
22 | pay into
the County and Mass Transit District Fund 4% of the | ||||||
23 | net revenue realized
for the preceding month from the 6.25% | ||||||
24 | general rate
on the selling price of tangible personal property | ||||||
25 | which is purchased
outside Illinois at retail from a retailer | ||||||
26 | and which is titled or
registered by an agency of this State's |
| |||||||
| |||||||
1 | government. | ||||||
2 | Beginning January 1, 1990, each month the Department shall | ||||||
3 | pay into
the State and Local Sales Tax Reform Fund, a special | ||||||
4 | fund in the State
Treasury, 20% of the net revenue realized
for | ||||||
5 | the preceding month from the 6.25% general rate on the selling
| ||||||
6 | price of tangible personal property, other than tangible | ||||||
7 | personal property
which is purchased outside Illinois at retail | ||||||
8 | from a retailer and which is
titled or registered by an agency | ||||||
9 | of this State's government. | ||||||
10 | Beginning August 1, 2000, each
month the Department shall | ||||||
11 | pay into the
State and Local Sales Tax Reform Fund 100% of the | ||||||
12 | net revenue realized for the
preceding month from the 1.25% | ||||||
13 | rate on the selling price of motor fuel and
gasohol. Beginning | ||||||
14 | September 1, 2010, each
month the Department shall pay into the
| ||||||
15 | State and Local Sales Tax Reform Fund 100% of the net revenue | ||||||
16 | realized for the
preceding month from the 1.25% rate on the | ||||||
17 | selling price of sales tax holiday items. | ||||||
18 | Beginning January 1, 1990, each month the Department shall | ||||||
19 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
20 | realized for the
preceding month from the 6.25% general rate on | ||||||
21 | the selling price of
tangible personal property which is | ||||||
22 | purchased outside Illinois at retail
from a retailer and which | ||||||
23 | is titled or registered by an agency of this
State's | ||||||
24 | government. | ||||||
25 | Beginning October 1, 2009, each month the Department shall | ||||||
26 | pay into the Capital Projects Fund an amount that is equal to |
| |||||||
| |||||||
1 | an amount estimated by the Department to represent 80% of the | ||||||
2 | net revenue realized for the preceding month from the sale of | ||||||
3 | candy, grooming and hygiene products, and soft drinks that had | ||||||
4 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
5 | are now taxed at 6.25%. | ||||||
6 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
7 | into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
8 | realized for the
preceding month from the 6.25% general rate on | ||||||
9 | the selling price of sorbents used in Illinois in the process | ||||||
10 | of sorbent injection as used to comply with the Environmental | ||||||
11 | Protection Act or the federal Clean Air Act, but the total | ||||||
12 | payment into the Clean Air Act Permit Fund under this Act and | ||||||
13 | the Retailers' Occupation Tax Act shall not exceed $2,000,000 | ||||||
14 | in any fiscal year. | ||||||
15 | Beginning July 1, 2013, each month the Department shall pay | ||||||
16 | into the Underground Storage Tank Fund from the proceeds | ||||||
17 | collected under this Act, the Service Use Tax Act, the Service | ||||||
18 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
19 | amount equal to the average monthly deficit in the Underground | ||||||
20 | Storage Tank Fund during the prior year, as certified annually | ||||||
21 | by the Illinois Environmental Protection Agency, but the total | ||||||
22 | payment into the Underground Storage Tank Fund under this Act, | ||||||
23 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
24 | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | ||||||
25 | in any State fiscal year. As used in this paragraph, the | ||||||
26 | "average monthly deficit" shall be equal to the difference |
| |||||||
| |||||||
1 | between the average monthly claims for payment by the fund and | ||||||
2 | the average monthly revenues deposited into the fund, excluding | ||||||
3 | payments made pursuant to this paragraph. | ||||||
4 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
5 | received by the Department under this Act, the Service Use Tax | ||||||
6 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
7 | Occupation Tax Act, each month the Department shall deposit | ||||||
8 | $500,000 into the State Crime Laboratory Fund. | ||||||
9 | Of the remainder of the moneys received by the Department | ||||||
10 | pursuant to
this Act, (a) 1.75% thereof shall be paid
into the | ||||||
11 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on | ||||||
12 | and after July 1, 1989, 3.8% thereof shall be paid into the
| ||||||
13 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
14 | year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
15 | may be, of the
moneys received by the Department and required | ||||||
16 | to be paid into the Build
Illinois Fund pursuant to Section 3 | ||||||
17 | of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax | ||||||
18 | Act, Section 9 of the Service Use
Tax Act, and Section 9 of the | ||||||
19 | Service Occupation Tax Act, such Acts being
hereinafter called | ||||||
20 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case | ||||||
21 | may be, of moneys being hereinafter called the "Tax Act | ||||||
22 | Amount",
and (2) the amount transferred to the Build Illinois | ||||||
23 | Fund from the State
and Local Sales Tax Reform Fund shall be | ||||||
24 | less than the Annual Specified
Amount (as defined in Section 3 | ||||||
25 | of the Retailers' Occupation Tax Act), an
amount equal to the | ||||||
26 | difference shall be immediately paid into the Build
Illinois |
| |||||||
| |||||||
1 | Fund from other moneys received by the Department pursuant to | ||||||
2 | the
Tax Acts; and further provided, that if on the last | ||||||
3 | business day of any
month the sum of (1) the Tax Act Amount | ||||||
4 | required to be deposited into the
Build Illinois Bond Account | ||||||
5 | in the Build Illinois Fund during such month
and (2) the amount | ||||||
6 | transferred during such month to the Build Illinois Fund
from | ||||||
7 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
8 | than
1/12 of the Annual Specified Amount, an amount equal to | ||||||
9 | the difference
shall be immediately paid into the Build | ||||||
10 | Illinois Fund from other moneys
received by the Department | ||||||
11 | pursuant to the Tax Acts; and,
further provided, that in no | ||||||
12 | event shall the payments required under the
preceding proviso | ||||||
13 | result in aggregate payments into the Build Illinois Fund
| ||||||
14 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
15 | the greater
of (i) the Tax Act Amount or (ii) the Annual | ||||||
16 | Specified Amount for such
fiscal year; and, further provided, | ||||||
17 | that the amounts payable into the Build
Illinois Fund under | ||||||
18 | this clause (b) shall be payable only until such time
as the | ||||||
19 | aggregate amount on deposit under each trust
indenture securing | ||||||
20 | Bonds issued and outstanding pursuant to the Build
Illinois | ||||||
21 | Bond Act is sufficient, taking into account any future | ||||||
22 | investment
income, to fully provide, in accordance with such | ||||||
23 | indenture, for the
defeasance of or the payment of the | ||||||
24 | principal of, premium, if any, and
interest on the Bonds | ||||||
25 | secured by such indenture and on any Bonds expected
to be | ||||||
26 | issued thereafter and all fees and costs payable with respect |
| |||||||
| |||||||
1 | thereto,
all as certified by the Director of the
Bureau of the | ||||||
2 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
3 | the last
business day of any month in which Bonds are | ||||||
4 | outstanding pursuant to the
Build Illinois Bond Act, the | ||||||
5 | aggregate of the moneys deposited
in the Build Illinois Bond | ||||||
6 | Account in the Build Illinois Fund in such month
shall be less | ||||||
7 | than the amount required to be transferred in such month from
| ||||||
8 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
9 | Retirement and
Interest Fund pursuant to Section 13 of the | ||||||
10 | Build Illinois Bond Act, an
amount equal to such deficiency | ||||||
11 | shall be immediately paid
from other moneys received by the | ||||||
12 | Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||||||
13 | provided, however, that any amounts paid to the
Build Illinois | ||||||
14 | Fund in any fiscal year pursuant to this sentence shall be
| ||||||
15 | deemed to constitute payments pursuant to clause (b) of the | ||||||
16 | preceding
sentence and shall reduce the amount otherwise | ||||||
17 | payable for such fiscal year
pursuant to clause (b) of the | ||||||
18 | preceding sentence. The moneys received by
the Department | ||||||
19 | pursuant to this Act and required to be deposited into the
| ||||||
20 | Build Illinois Fund are subject to the pledge, claim and charge | ||||||
21 | set forth
in Section 12 of the Build Illinois Bond Act. | ||||||
22 | Subject to payment of amounts into the Build Illinois Fund | ||||||
23 | as provided in
the preceding paragraph or in any amendment | ||||||
24 | thereto hereafter enacted, the
following specified monthly | ||||||
25 | installment of the amount requested in the
certificate of the | ||||||
26 | Chairman of the Metropolitan Pier and Exposition
Authority |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | in
excess of the sums designated as "Total Deposit", shall be
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | the Use Tax
Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | 9 of the Service
Occupation Tax Act, and Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Retailers' Occupation Tax Act into
the McCormick Place | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
5 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||
6 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||
7 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||
8 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||
9 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||
10 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||
11 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||
12 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||
13 | required under this Section for previous
months and years, | |||||||||||||||||||||
14 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||
15 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||
16 | not
in excess of the amount specified above as "Total Deposit", | |||||||||||||||||||||
17 | has been deposited. | |||||||||||||||||||||
18 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||
19 | and the
McCormick Place Expansion Project Fund pursuant to the | |||||||||||||||||||||
20 | preceding paragraphs or
in any amendments thereto
hereafter | |||||||||||||||||||||
21 | enacted,
beginning July 1, 1993 and ending on September 30, | |||||||||||||||||||||
22 | 2013, the Department shall each month pay into the Illinois
Tax | |||||||||||||||||||||
23 | Increment Fund 0.27% of 80% of the net revenue realized for the | |||||||||||||||||||||
24 | preceding
month from the 6.25% general rate on the selling | |||||||||||||||||||||
25 | price of tangible personal
property. | |||||||||||||||||||||
26 | Subject to payment of amounts into the Build Illinois Fund |
| |||||||
| |||||||
1 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
2 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
3 | enacted, beginning with the receipt of the first
report of | ||||||
4 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
5 | period, the Department shall each month pay into the Energy | ||||||
6 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
7 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
8 | that was sold to an eligible business.
For purposes of this | ||||||
9 | paragraph, the term "eligible business" means a new
electric | ||||||
10 | generating facility certified pursuant to Section 605-332 of | ||||||
11 | the
Department of Commerce and
Economic Opportunity Law of the | ||||||
12 | Civil Administrative
Code of Illinois. | ||||||
13 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
14 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
15 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
16 | the preceding paragraphs or in any amendments to this Section | ||||||
17 | hereafter enacted, beginning on the first day of the first | ||||||
18 | calendar month to occur on or after August 26, 2014 ( the | ||||||
19 | effective date of Public Act 98-1098) this amendatory Act of | ||||||
20 | the 98th General Assembly , each month, from the collections | ||||||
21 | made under Section 9 of the Use Tax Act, Section 9 of the | ||||||
22 | Service Use Tax Act, Section 9 of the Service Occupation Tax | ||||||
23 | Act, and Section 3 of the Retailers' Occupation Tax Act, the | ||||||
24 | Department shall pay into the Tax Compliance and Administration | ||||||
25 | Fund, to be used, subject to appropriation, to fund additional | ||||||
26 | auditors and compliance personnel at the Department of Revenue, |
| |||||||
| |||||||
1 | an amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
2 | collected during the preceding fiscal year by the Audit Bureau | ||||||
3 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
4 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
5 | Tax Act, and associated local occupation and use taxes | ||||||
6 | administered by the Department. | ||||||
7 | Of the remainder of the moneys received by the Department | ||||||
8 | pursuant
to this Act, 75% thereof shall be paid into the State | ||||||
9 | Treasury and 25%
shall be reserved in a special account and | ||||||
10 | used only for the transfer to
the Common School Fund as part of | ||||||
11 | the monthly transfer from the General
Revenue Fund in | ||||||
12 | accordance with Section 8a of the State
Finance Act. | ||||||
13 | As soon as possible after the first day of each month, upon | ||||||
14 | certification
of the Department of Revenue, the Comptroller | ||||||
15 | shall order transferred and
the Treasurer shall transfer from | ||||||
16 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
17 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
18 | for the second preceding month.
Beginning April 1, 2000, this | ||||||
19 | transfer is no longer required
and shall not be made. | ||||||
20 | Net revenue realized for a month shall be the revenue | ||||||
21 | collected
by the State pursuant to this Act, less the amount | ||||||
22 | paid out during that
month as refunds to taxpayers for | ||||||
23 | overpayment of liability. | ||||||
24 | For greater simplicity of administration, manufacturers, | ||||||
25 | importers
and wholesalers whose products are sold at retail in | ||||||
26 | Illinois by
numerous retailers, and who wish to do so, may |
| |||||||
| |||||||
1 | assume the responsibility
for accounting and paying to the | ||||||
2 | Department all tax accruing under this
Act with respect to such | ||||||
3 | sales, if the retailers who are affected do not
make written | ||||||
4 | objection to the Department to this arrangement. | ||||||
5 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
6 | 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff. | ||||||
7 | 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933, | ||||||
8 | eff. 1-27-17; revised 2-3-17.)
| ||||||
9 | Section 15. The Service Use Tax Act is amended by changing | ||||||
10 | Section 9 as follows:
| ||||||
11 | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | ||||||
12 | Sec. 9. Each serviceman required or authorized to collect | ||||||
13 | the tax
herein imposed shall pay to the Department the amount | ||||||
14 | of such tax
(except as otherwise provided) at the time when he | ||||||
15 | is required to file
his return for the period during which such | ||||||
16 | tax was collected, less the vendor discount amount a
discount | ||||||
17 | of 2.1% prior to January 1, 1990 and 1.75% on and after January | ||||||
18 | 1,
1990, or $5 per calendar year, whichever is greater , which | ||||||
19 | is allowed to
reimburse the serviceman for expenses incurred in | ||||||
20 | collecting the tax,
keeping records, preparing and filing | ||||||
21 | returns, remitting the tax and
supplying data to the Department | ||||||
22 | on request. On and after January 1, 1990 and prior to January | ||||||
23 | 1, 2018, the vendor discount amount shall be 1.75% or $5 per | ||||||
24 | calendar
year, whichever is greater. On and after January 1, |
| |||||||
| |||||||
1 | 2018, the vendor discount amount shall be the sum of (i) 1.75% | ||||||
2 | of the first $1,000 collected during the calendar year and (ii) | ||||||
3 | 1% of the amount of proceeds collected during the calendar year | ||||||
4 | that exceeds $1,000; however, on and after January 1, 2018, in | ||||||
5 | no event shall the discount allowed to any vendor be less than | ||||||
6 | $5 in any calendar year or more than $1,500 in any calendar | ||||||
7 | year. The Department may disallow the discount for servicemen | ||||||
8 | whose certificate of registration is revoked at the time the | ||||||
9 | return is filed, but only if the Department's decision to | ||||||
10 | revoke the certificate of registration has become final. A | ||||||
11 | serviceman need not remit
that part of any tax collected by him | ||||||
12 | to the extent that he is required to
pay and does pay the tax | ||||||
13 | imposed by the Service Occupation Tax Act with
respect to his | ||||||
14 | sale of service involving the incidental transfer by him of
the | ||||||
15 | same property. | ||||||
16 | Except as provided hereinafter in this Section, on or | ||||||
17 | before the twentieth
day of each calendar month, such | ||||||
18 | serviceman shall file a return for the
preceding calendar month | ||||||
19 | in accordance with reasonable Rules and
Regulations to be | ||||||
20 | promulgated by the Department. Such return shall be
filed on a | ||||||
21 | form prescribed by the Department and shall contain such
| ||||||
22 | information as the Department may reasonably require. | ||||||
23 | The Department may require returns to be filed on a | ||||||
24 | quarterly basis.
If so required, a return for each calendar | ||||||
25 | quarter shall be filed on or
before the twentieth day of the | ||||||
26 | calendar month following the end of such
calendar quarter. The |
| |||||||
| |||||||
1 | taxpayer shall also file a return with the
Department for each | ||||||
2 | of the first two months of each calendar quarter, on or
before | ||||||
3 | the twentieth day of the following calendar month, stating: | ||||||
4 | 1. The name of the seller; | ||||||
5 | 2. The address of the principal place of business from | ||||||
6 | which he engages
in business as a serviceman in this State; | ||||||
7 | 3. The total amount of taxable receipts received by him | ||||||
8 | during the
preceding calendar month, including receipts | ||||||
9 | from charge and time sales,
but less all deductions allowed | ||||||
10 | by law; | ||||||
11 | 4. The amount of credit provided in Section 2d of this | ||||||
12 | Act; | ||||||
13 | 5. The amount of tax due; | ||||||
14 | 5-5. The signature of the taxpayer; and | ||||||
15 | 6. Such other reasonable information as the Department | ||||||
16 | may
require. | ||||||
17 | If a taxpayer fails to sign a return within 30 days after | ||||||
18 | the proper notice
and demand for signature by the Department, | ||||||
19 | the return shall be considered
valid and any amount shown to be | ||||||
20 | due on the return shall be deemed assessed. | ||||||
21 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
22 | monthly tax
liability of $150,000 or more shall make all | ||||||
23 | payments required by rules of
the Department by electronic | ||||||
24 | funds transfer. Beginning October 1, 1994, a
taxpayer who has | ||||||
25 | an average monthly tax liability of $100,000 or more shall
make | ||||||
26 | all payments required by rules of the Department by electronic |
| |||||||
| |||||||
1 | funds
transfer. Beginning October 1, 1995, a taxpayer who has | ||||||
2 | an average monthly
tax liability of $50,000 or more shall make | ||||||
3 | all payments required by rules
of the Department by electronic | ||||||
4 | funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||||||
5 | an annual tax liability of
$200,000 or more shall make all | ||||||
6 | payments required by rules of the Department by
electronic | ||||||
7 | funds transfer. The term "annual tax liability" shall be the | ||||||
8 | sum of
the taxpayer's liabilities under this Act, and under all | ||||||
9 | other State and local
occupation and use tax laws administered | ||||||
10 | by the Department, for the immediately
preceding calendar year.
| ||||||
11 | The term "average monthly tax
liability" means the sum of the | ||||||
12 | taxpayer's liabilities under this Act, and
under all other | ||||||
13 | State and local occupation and use tax laws administered by the
| ||||||
14 | Department, for the immediately preceding calendar year | ||||||
15 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
16 | a tax liability in the
amount set forth in subsection (b) of | ||||||
17 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
18 | all payments required by rules of the Department by
electronic | ||||||
19 | funds transfer. | ||||||
20 | Before August 1 of each year beginning in 1993, the | ||||||
21 | Department shall
notify all taxpayers required to make payments | ||||||
22 | by electronic funds transfer.
All taxpayers required to make | ||||||
23 | payments by electronic funds transfer shall
make those payments | ||||||
24 | for a minimum of one year beginning on October 1. | ||||||
25 | Any taxpayer not required to make payments by electronic | ||||||
26 | funds transfer
may make payments by electronic funds transfer |
| |||||||
| |||||||
1 | with the permission of the
Department. | ||||||
2 | All taxpayers required to make payment by electronic funds | ||||||
3 | transfer and
any taxpayers authorized to voluntarily make | ||||||
4 | payments by electronic funds
transfer shall make those payments | ||||||
5 | in the manner authorized by the Department. | ||||||
6 | The Department shall adopt such rules as are necessary to | ||||||
7 | effectuate a
program of electronic funds transfer and the | ||||||
8 | requirements of this Section. | ||||||
9 | If the serviceman is otherwise required to file a monthly | ||||||
10 | return and
if the serviceman's average monthly tax liability to | ||||||
11 | the Department
does not exceed $200, the Department may | ||||||
12 | authorize his returns to be
filed on a quarter annual basis, | ||||||
13 | with the return for January, February
and March of a given year | ||||||
14 | being due by April 20 of such year; with the
return for April, | ||||||
15 | May and June of a given year being due by July 20 of
such year; | ||||||
16 | with the return for July, August and September of a given
year | ||||||
17 | being due by October 20 of such year, and with the return for
| ||||||
18 | October, November and December of a given year being due by | ||||||
19 | January 20
of the following year. | ||||||
20 | If the serviceman is otherwise required to file a monthly | ||||||
21 | or quarterly
return and if the serviceman's average monthly tax | ||||||
22 | liability to the Department
does not exceed $50, the Department | ||||||
23 | may authorize his returns to be
filed on an annual basis, with | ||||||
24 | the return for a given year being due by
January 20 of the | ||||||
25 | following year. | ||||||
26 | Such quarter annual and annual returns, as to form and |
| |||||||
| |||||||
1 | substance,
shall be subject to the same requirements as monthly | ||||||
2 | returns. | ||||||
3 | Notwithstanding any other provision in this Act concerning | ||||||
4 | the time
within which a serviceman may file his return, in the | ||||||
5 | case of any
serviceman who ceases to engage in a kind of | ||||||
6 | business which makes him
responsible for filing returns under | ||||||
7 | this Act, such serviceman shall
file a final return under this | ||||||
8 | Act with the Department not more than 1
month after | ||||||
9 | discontinuing such business. | ||||||
10 | Where a serviceman collects the tax with respect to the | ||||||
11 | selling price of
property which he sells and the purchaser | ||||||
12 | thereafter returns such
property and the serviceman refunds the | ||||||
13 | selling price thereof to the
purchaser, such serviceman shall | ||||||
14 | also refund, to the purchaser, the tax
so collected from the | ||||||
15 | purchaser. When filing his return for the period
in which he | ||||||
16 | refunds such tax to the purchaser, the serviceman may deduct
| ||||||
17 | the amount of the tax so refunded by him to the purchaser from | ||||||
18 | any other
Service Use Tax, Service Occupation Tax, retailers' | ||||||
19 | occupation tax or
use tax which such serviceman may be required | ||||||
20 | to pay or remit to the
Department, as shown by such return, | ||||||
21 | provided that the amount of the tax
to be deducted shall | ||||||
22 | previously have been remitted to the Department by
such | ||||||
23 | serviceman. If the serviceman shall not previously have | ||||||
24 | remitted
the amount of such tax to the Department, he shall be | ||||||
25 | entitled to no
deduction hereunder upon refunding such tax to | ||||||
26 | the purchaser. |
| |||||||
| |||||||
1 | Any serviceman filing a return hereunder shall also include | ||||||
2 | the total
tax upon the selling price of tangible personal | ||||||
3 | property purchased for use
by him as an incident to a sale of | ||||||
4 | service, and such serviceman shall remit
the amount of such tax | ||||||
5 | to the Department when filing such return. | ||||||
6 | If experience indicates such action to be practicable, the | ||||||
7 | Department
may prescribe and furnish a combination or joint | ||||||
8 | return which will
enable servicemen, who are required to file | ||||||
9 | returns hereunder and also
under the Service Occupation Tax | ||||||
10 | Act, to furnish all the return
information required by both | ||||||
11 | Acts on the one form. | ||||||
12 | Where the serviceman has more than one business registered | ||||||
13 | with the
Department under separate registration hereunder, | ||||||
14 | such serviceman 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 | Beginning January 1, 1990, each month the Department shall | ||||||
18 | pay into
the State and Local Tax Reform Fund, a special fund in | ||||||
19 | the State Treasury,
the net revenue realized for the preceding | ||||||
20 | month from the 1% tax on sales
of food for human consumption | ||||||
21 | which is to be consumed off the premises
where it is sold | ||||||
22 | (other than alcoholic beverages, soft drinks and food
which has | ||||||
23 | been prepared for immediate consumption) and prescription and
| ||||||
24 | nonprescription medicines, drugs, medical appliances, products | ||||||
25 | classified as Class III medical devices, by the United States | ||||||
26 | Food and Drug Administration that are used for cancer treatment |
| |||||||
| |||||||
1 | pursuant to a prescription, as well as any accessories and | ||||||
2 | components related to those devices, and insulin, urine
testing | ||||||
3 | materials, syringes and needles used by diabetics. | ||||||
4 | Beginning January 1, 1990, each month the Department shall | ||||||
5 | pay into
the State and Local Sales Tax Reform Fund 20% of the | ||||||
6 | net revenue realized
for the preceding month from the 6.25% | ||||||
7 | general rate on transfers of
tangible personal property, other | ||||||
8 | than tangible personal property which is
purchased outside | ||||||
9 | Illinois at retail from a retailer and which is titled or
| ||||||
10 | registered by an agency of this State's government. | ||||||
11 | Beginning August 1, 2000, each
month the Department shall | ||||||
12 | pay into the
State and Local Sales Tax Reform Fund 100% of the | ||||||
13 | net revenue realized for the
preceding
month from the 1.25% | ||||||
14 | rate on the selling price of motor fuel and gasohol. | ||||||
15 | Beginning October 1, 2009, each month the Department shall | ||||||
16 | pay into the Capital Projects Fund an amount that is equal to | ||||||
17 | an amount estimated by the Department to represent 80% of the | ||||||
18 | net revenue realized for the preceding month from the sale of | ||||||
19 | candy, grooming and hygiene products, and soft drinks that had | ||||||
20 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
21 | are now taxed at 6.25%. | ||||||
22 | Beginning July 1, 2013, each month the Department shall pay | ||||||
23 | into the Underground Storage Tank Fund from the proceeds | ||||||
24 | collected under this Act, the Use Tax Act, the Service | ||||||
25 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
26 | amount equal to the average monthly deficit in the Underground |
| |||||||
| |||||||
1 | Storage Tank Fund during the prior year, as certified annually | ||||||
2 | by the Illinois Environmental Protection Agency, but the total | ||||||
3 | payment into the Underground Storage Tank Fund under this Act, | ||||||
4 | the Use Tax Act, the Service Occupation Tax Act, and the | ||||||
5 | Retailers' Occupation Tax Act shall not exceed $18,000,000 in | ||||||
6 | any State fiscal year. As used in this paragraph, the "average | ||||||
7 | monthly deficit" shall be equal to the difference between the | ||||||
8 | average monthly claims for payment by the fund and the average | ||||||
9 | monthly revenues deposited into the fund, excluding payments | ||||||
10 | made pursuant to this paragraph. | ||||||
11 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
12 | received by the Department under the Use Tax Act, this Act, the | ||||||
13 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
14 | Act, each month the Department shall deposit $500,000 into the | ||||||
15 | State Crime Laboratory Fund. | ||||||
16 | Of the remainder of the moneys received by the Department | ||||||
17 | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | ||||||
18 | Build
Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
19 | and after July 1,
1989, 3.8% thereof shall be paid into the | ||||||
20 | Build Illinois Fund; provided,
however, that if in any fiscal | ||||||
21 | year the sum of (1) the aggregate of 2.2% or
3.8%, as the case | ||||||
22 | may be, of the moneys received by the Department and
required | ||||||
23 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
24 | of
the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
25 | Act, Section 9
of the Service Use Tax Act, and Section 9 of the | ||||||
26 | Service Occupation Tax
Act, such Acts being hereinafter called |
| |||||||
| |||||||
1 | the "Tax Acts" and such aggregate
of 2.2% or 3.8%, as the case | ||||||
2 | may be, of moneys being hereinafter called the
"Tax Act | ||||||
3 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
4 | Fund
from the State and Local Sales Tax Reform Fund shall be | ||||||
5 | less than the
Annual Specified Amount (as defined in Section 3 | ||||||
6 | of the Retailers'
Occupation Tax Act), an amount equal to the | ||||||
7 | difference shall be immediately
paid into the Build Illinois | ||||||
8 | Fund from other moneys received by the
Department pursuant to | ||||||
9 | the Tax Acts; and further provided, that if on the
last | ||||||
10 | business day of any month the sum of (1) the Tax Act Amount | ||||||
11 | required
to be deposited into the Build Illinois Bond Account | ||||||
12 | in the Build Illinois
Fund during such month and (2) the amount | ||||||
13 | transferred during such month to
the Build Illinois Fund from | ||||||
14 | the State and Local Sales Tax Reform Fund
shall have been less | ||||||
15 | than 1/12 of the Annual Specified Amount, an amount
equal to | ||||||
16 | the difference shall be immediately paid into the Build | ||||||
17 | Illinois
Fund from other moneys received by the Department | ||||||
18 | pursuant to the Tax Acts;
and, further provided, that in no | ||||||
19 | event shall the payments required under
the preceding proviso | ||||||
20 | result in aggregate payments into the Build Illinois
Fund | ||||||
21 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
22 | the
greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
23 | Specified Amount for
such fiscal year; and, further provided, | ||||||
24 | that the amounts payable into the
Build Illinois Fund under | ||||||
25 | this clause (b) shall be payable only until such
time as the | ||||||
26 | aggregate amount on deposit under each trust indenture securing
|
| |||||||
| |||||||
1 | Bonds issued and outstanding pursuant to the Build Illinois | ||||||
2 | Bond Act is
sufficient, taking into account any future | ||||||
3 | investment income, to fully
provide, in accordance with such | ||||||
4 | indenture, for the defeasance of or the
payment of the | ||||||
5 | principal of, premium, if any, and interest on the Bonds
| ||||||
6 | secured by such indenture and on any Bonds expected to be | ||||||
7 | issued thereafter
and all fees and costs payable with respect | ||||||
8 | thereto, all as certified by
the Director of the
Bureau of the | ||||||
9 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
10 | the last business day of
any month in which Bonds are | ||||||
11 | outstanding pursuant to the Build Illinois
Bond Act, the | ||||||
12 | aggregate of the moneys deposited in the Build Illinois Bond
| ||||||
13 | Account in the Build Illinois Fund in such month shall be less | ||||||
14 | than the
amount required to be transferred in such month from | ||||||
15 | the Build Illinois
Bond Account to the Build Illinois Bond | ||||||
16 | Retirement and Interest Fund
pursuant to Section 13 of the | ||||||
17 | Build Illinois Bond Act, an amount equal to
such deficiency | ||||||
18 | shall be immediately paid from other moneys received by the
| ||||||
19 | Department pursuant to the Tax Acts to the Build Illinois Fund; | ||||||
20 | provided,
however, that any amounts paid to the Build Illinois | ||||||
21 | Fund in any fiscal
year pursuant to this sentence shall be | ||||||
22 | deemed to constitute payments
pursuant to clause (b) of the | ||||||
23 | preceding sentence and shall reduce the
amount otherwise | ||||||
24 | payable for such fiscal year pursuant to clause (b) of the
| ||||||
25 | preceding sentence. The moneys received by the Department | ||||||
26 | pursuant to this
Act and required to be deposited into the |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Build Illinois Fund are subject
to the pledge, claim and charge | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | set forth in Section 12 of the Build Illinois
Bond Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | as provided in
the preceding paragraph or in any amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | in
excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | 9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | required under this Section for previous
months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | not
in excess of the amount specified above as "Total Deposit", | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | has been deposited. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | Subject to payment of amounts into the Build Illinois Fund |
| |||||||
| |||||||
1 | and the
McCormick Place Expansion Project Fund
pursuant to the | ||||||
2 | preceding paragraphs or in any amendments thereto hereafter
| ||||||
3 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
4 | 2013, the Department shall each month pay into the
Illinois Tax | ||||||
5 | Increment Fund 0.27% of 80% of the net revenue realized for the
| ||||||
6 | preceding month from the 6.25% general rate on the selling | ||||||
7 | price of tangible
personal property. | ||||||
8 | Subject to payment of amounts into the Build Illinois Fund | ||||||
9 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
10 | preceding paragraphs or
in any
amendments thereto hereafter | ||||||
11 | enacted, beginning with the receipt of the first
report of | ||||||
12 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
13 | period, the Department shall each month pay into the Energy | ||||||
14 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
15 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
16 | that was sold to an eligible business.
For purposes of this | ||||||
17 | paragraph, the term "eligible business" means a new
electric | ||||||
18 | generating facility certified pursuant to Section 605-332 of | ||||||
19 | the
Department of Commerce and
Economic Opportunity Law of the | ||||||
20 | Civil Administrative
Code of Illinois. | ||||||
21 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
22 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
23 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
24 | the preceding paragraphs or in any amendments to this Section | ||||||
25 | hereafter enacted, beginning on the first day of the first | ||||||
26 | calendar month to occur on or after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 98th General Assembly, each month, from | ||||||
2 | the collections made under Section 9 of the Use Tax Act, | ||||||
3 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
4 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
5 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
6 | Administration Fund, to be used, subject to appropriation, to | ||||||
7 | fund additional auditors and compliance personnel at the | ||||||
8 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
9 | the cash receipts collected during the preceding fiscal year by | ||||||
10 | the Audit Bureau of the Department under the Use Tax Act, the | ||||||
11 | Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
12 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
13 | and use taxes administered by the Department. | ||||||
14 | Of the remainder of the moneys received by the Department | ||||||
15 | pursuant to this
Act, 75% thereof shall be paid into the | ||||||
16 | General Revenue Fund of the State Treasury and 25% shall be | ||||||
17 | reserved in a special account and used only for the transfer to | ||||||
18 | the Common School Fund as part of the monthly transfer from the | ||||||
19 | General Revenue Fund in accordance with Section 8a of the State | ||||||
20 | Finance Act. | ||||||
21 | As soon as possible after the first day of each month, upon | ||||||
22 | certification
of the Department of Revenue, the Comptroller | ||||||
23 | shall order transferred and
the Treasurer shall transfer from | ||||||
24 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
25 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
26 | for the second preceding month.
Beginning April 1, 2000, this |
| |||||||
| |||||||
1 | transfer is no longer required
and shall not be made. | ||||||
2 | Net revenue realized for a month shall be the revenue | ||||||
3 | collected by the State
pursuant to this Act, less the amount | ||||||
4 | paid out during that month as refunds
to taxpayers for | ||||||
5 | overpayment of liability. | ||||||
6 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
7 | 98-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; | ||||||
8 | 98-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. | ||||||
9 | 8-19-16.)
| ||||||
10 | Section 20. The Service Occupation Tax Act is amended by | ||||||
11 | changing Section 9 as follows:
| ||||||
12 | (35 ILCS 115/9) (from Ch. 120, par. 439.109) | ||||||
13 | Sec. 9. Each serviceman required or authorized to collect | ||||||
14 | the tax
herein imposed shall pay to the Department the amount | ||||||
15 | of such tax at the
time when he is required to file his return | ||||||
16 | for the period during which
such tax was collectible, less the | ||||||
17 | vendor discount amount a discount of 2.1% prior to
January 1, | ||||||
18 | 1990, and 1.75% on and after January 1, 1990, or
$5 per | ||||||
19 | calendar year, whichever is greater , which is allowed to | ||||||
20 | reimburse
the serviceman for expenses incurred in collecting | ||||||
21 | the tax, keeping
records, preparing and filing returns, | ||||||
22 | remitting the tax and supplying data
to the Department on | ||||||
23 | request. On and after January 1, 1990 and prior to January 1, | ||||||
24 | 2018, the vendor discount amount shall be 1.75% or $5 per |
| |||||||
| |||||||
1 | calendar
year, whichever is greater. On and after January 1, | ||||||
2 | 2018, the vendor discount amount shall be the sum of (i) 1.75% | ||||||
3 | of the first $1,000 collected during the calendar year and (ii) | ||||||
4 | 1% of the amount of proceeds collected during the calendar year | ||||||
5 | that exceeds $1,000; however, on and after January 1, 2018, in | ||||||
6 | no event shall the discount allowed to any vendor be less than | ||||||
7 | $5 in any calendar year or more than $1,500 in any calendar | ||||||
8 | year. The Department may disallow the discount for servicemen | ||||||
9 | whose certificate of registration is revoked at the time the | ||||||
10 | return is filed, but only if the Department's decision to | ||||||
11 | revoke the certificate of registration has become final. | ||||||
12 | Where such tangible personal property is sold under a | ||||||
13 | conditional
sales contract, or under any other form of sale | ||||||
14 | wherein the payment of
the principal sum, or a part thereof, is | ||||||
15 | extended beyond the close of
the period for which the return is | ||||||
16 | filed, the serviceman, in collecting
the tax may collect, for | ||||||
17 | each tax return period, only the tax applicable
to the part of | ||||||
18 | the selling price actually received during such tax return
| ||||||
19 | period. | ||||||
20 | Except as provided hereinafter in this Section, on or | ||||||
21 | before the twentieth
day of each calendar month, such | ||||||
22 | serviceman shall file a
return for the preceding calendar month | ||||||
23 | in accordance with reasonable
rules and regulations to be | ||||||
24 | promulgated by the Department of Revenue.
Such return shall be | ||||||
25 | filed on a form prescribed by the Department and
shall contain | ||||||
26 | such information as the Department may reasonably require. |
| |||||||
| |||||||
1 | The Department may require returns to be filed on a | ||||||
2 | quarterly basis.
If so required, a return for each calendar | ||||||
3 | quarter shall be filed on or
before the twentieth day of the | ||||||
4 | calendar month following the end of such
calendar quarter. The | ||||||
5 | taxpayer shall also file a return with the
Department for each | ||||||
6 | of the first two months of each calendar quarter, on or
before | ||||||
7 | the twentieth day of the following calendar month, stating: | ||||||
8 | 1. The name of the seller; | ||||||
9 | 2. The address of the principal place of business from | ||||||
10 | which he engages
in business as a serviceman in this State; | ||||||
11 | 3. The total amount of taxable receipts received by him | ||||||
12 | during the
preceding calendar month, including receipts | ||||||
13 | from charge and time sales,
but less all deductions allowed | ||||||
14 | by law; | ||||||
15 | 4. The amount of credit provided in Section 2d of this | ||||||
16 | Act; | ||||||
17 | 5. The amount of tax due; | ||||||
18 | 5-5. The signature of the taxpayer; and | ||||||
19 | 6. Such other reasonable information as the Department | ||||||
20 | may
require. | ||||||
21 | If a taxpayer fails to sign a return within 30 days after | ||||||
22 | the proper notice
and demand for signature by the Department, | ||||||
23 | the return shall be considered
valid and any amount shown to be | ||||||
24 | due on the return shall be deemed assessed. | ||||||
25 | Prior to October 1, 2003, and on and after September 1, | ||||||
26 | 2004 a serviceman may accept a Manufacturer's
Purchase Credit |
| |||||||
| |||||||
1 | certification
from a purchaser in satisfaction
of Service Use | ||||||
2 | Tax as provided in Section 3-70 of the
Service Use Tax Act if | ||||||
3 | the purchaser provides
the
appropriate
documentation as | ||||||
4 | required by Section 3-70 of the Service Use Tax Act.
A | ||||||
5 | Manufacturer's Purchase Credit certification, accepted prior | ||||||
6 | to October 1,
2003 or on or after September 1, 2004 by a | ||||||
7 | serviceman as
provided in Section 3-70 of the Service Use Tax | ||||||
8 | Act, may be used by that
serviceman to satisfy Service | ||||||
9 | Occupation Tax liability in the amount claimed in
the | ||||||
10 | certification, not to exceed 6.25% of the receipts subject to | ||||||
11 | tax from a
qualifying purchase. A Manufacturer's Purchase | ||||||
12 | Credit reported on any
original or amended return
filed under
| ||||||
13 | this Act after October 20, 2003 for reporting periods prior to | ||||||
14 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
15 | Credit reported on annual returns due on or after January 1, | ||||||
16 | 2005 will be disallowed for periods prior to September 1, 2004.
| ||||||
17 | No Manufacturer's
Purchase Credit may be used after September | ||||||
18 | 30, 2003 through August 31, 2004 to
satisfy any
tax liability | ||||||
19 | imposed under this Act, including any audit liability. | ||||||
20 | If the serviceman's average monthly tax liability to
the | ||||||
21 | Department does not exceed $200, the Department may authorize | ||||||
22 | his
returns to be filed on a quarter annual basis, with the | ||||||
23 | return for
January, February and March of a given year being | ||||||
24 | due by April 20 of
such year; with the return for April, May | ||||||
25 | and June of a given year being
due by July 20 of such year; with | ||||||
26 | the return for July, August and
September of a given year being |
| |||||||
| |||||||
1 | due by October 20 of such year, and with
the return for | ||||||
2 | October, November and December of a given year being due
by | ||||||
3 | January 20 of the following year. | ||||||
4 | If the serviceman's average monthly tax liability to
the | ||||||
5 | Department does not exceed $50, the Department may authorize | ||||||
6 | his
returns to be filed on an annual basis, with the return for | ||||||
7 | a given year
being due by January 20 of the following year. | ||||||
8 | Such quarter annual and annual returns, as to form and | ||||||
9 | substance,
shall be subject to the same requirements as monthly | ||||||
10 | returns. | ||||||
11 | Notwithstanding any other provision in this Act concerning | ||||||
12 | the time within
which a serviceman may file his return, in the | ||||||
13 | case of any serviceman who
ceases to engage in a kind of | ||||||
14 | business which makes him responsible for filing
returns under | ||||||
15 | this Act, such serviceman shall file a final return under this
| ||||||
16 | Act with the Department not more than 1 month after | ||||||
17 | discontinuing such
business. | ||||||
18 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
19 | monthly tax
liability of $150,000 or more shall make all | ||||||
20 | payments required by rules of the
Department by electronic | ||||||
21 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
22 | an average monthly tax liability of $100,000 or more shall make | ||||||
23 | all
payments required by rules of the Department by electronic | ||||||
24 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
25 | an average monthly tax liability
of $50,000 or more shall make | ||||||
26 | all payments required by rules of the Department
by electronic |
| |||||||
| |||||||
1 | funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||||||
2 | an annual tax liability of $200,000 or more shall make all | ||||||
3 | payments required by
rules of the Department by electronic | ||||||
4 | funds transfer. The term "annual tax
liability" shall be the | ||||||
5 | sum of the taxpayer's liabilities under this Act, and
under all | ||||||
6 | other State and local occupation and use tax laws administered | ||||||
7 | by the
Department, for the immediately preceding calendar year. | ||||||
8 | The term "average
monthly tax liability" means
the sum of the | ||||||
9 | taxpayer's liabilities under this Act, and under all other | ||||||
10 | State
and local occupation and use tax laws administered by the | ||||||
11 | Department, for the
immediately preceding calendar year | ||||||
12 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
13 | a tax liability in the
amount set forth in subsection (b) of | ||||||
14 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
15 | all payments required by rules of the Department by
electronic | ||||||
16 | funds transfer. | ||||||
17 | Before August 1 of each year beginning in 1993, the | ||||||
18 | Department shall
notify all taxpayers required to make payments | ||||||
19 | by electronic funds transfer.
All taxpayers required to make | ||||||
20 | payments by electronic funds transfer shall make
those payments | ||||||
21 | for a minimum of one year beginning on October 1. | ||||||
22 | Any taxpayer not required to make payments by electronic | ||||||
23 | funds transfer may
make payments by electronic funds transfer | ||||||
24 | with the
permission of the Department. | ||||||
25 | All taxpayers required to make payment by electronic funds | ||||||
26 | transfer and
any taxpayers authorized to voluntarily make |
| |||||||
| |||||||
1 | payments by electronic funds
transfer shall make those payments | ||||||
2 | in the manner authorized by the Department. | ||||||
3 | The Department shall adopt such rules as are necessary to | ||||||
4 | effectuate a
program of electronic funds transfer and the | ||||||
5 | requirements of this Section. | ||||||
6 | Where a serviceman collects the tax with respect to the | ||||||
7 | selling price of
tangible personal property which he sells and | ||||||
8 | the purchaser thereafter returns
such tangible personal | ||||||
9 | property and the serviceman refunds the
selling price thereof | ||||||
10 | to the purchaser, such serviceman shall also refund,
to the | ||||||
11 | purchaser, the tax so collected from the purchaser. When
filing | ||||||
12 | his return for the period in which he refunds such tax to the
| ||||||
13 | purchaser, the serviceman may deduct the amount of the tax so | ||||||
14 | refunded by
him to the purchaser from any other Service | ||||||
15 | Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or | ||||||
16 | Use Tax which such serviceman may be
required to pay or remit | ||||||
17 | to the Department, as shown by such return,
provided that the | ||||||
18 | amount of the tax to be deducted shall previously have
been | ||||||
19 | remitted to the Department by such serviceman. If the | ||||||
20 | serviceman shall
not previously have remitted the amount of | ||||||
21 | such tax to the Department,
he shall be entitled to no | ||||||
22 | deduction hereunder upon refunding such tax
to the purchaser. | ||||||
23 | If experience indicates such action to be practicable, the | ||||||
24 | Department
may prescribe and furnish a combination or joint | ||||||
25 | return which will
enable servicemen, who are required to file | ||||||
26 | returns
hereunder and also under the Retailers' Occupation Tax |
| |||||||
| |||||||
1 | Act, the Use
Tax Act or the Service Use Tax Act, to furnish all | ||||||
2 | the return
information required by all said Acts on the one | ||||||
3 | form. | ||||||
4 | Where the serviceman has more than one business
registered | ||||||
5 | with the Department under separate registrations hereunder,
| ||||||
6 | such serviceman shall file separate returns for each
registered | ||||||
7 | business. | ||||||
8 | Beginning January 1, 1990, each month the Department shall | ||||||
9 | pay into
the Local Government Tax Fund the revenue realized for | ||||||
10 | the
preceding month from the 1% tax on sales of food for human | ||||||
11 | consumption
which is to be consumed off the premises where it | ||||||
12 | is sold (other than
alcoholic beverages, soft drinks and food | ||||||
13 | which has been prepared for
immediate consumption) and | ||||||
14 | prescription and nonprescription medicines,
drugs, medical | ||||||
15 | appliances, products classified as Class III medical devices by | ||||||
16 | the United States Food and Drug Administration that are used | ||||||
17 | for cancer treatment pursuant to a prescription, as well as any | ||||||
18 | accessories and components related to those devices, and | ||||||
19 | insulin, urine testing materials, syringes
and needles used by | ||||||
20 | diabetics. | ||||||
21 | Beginning January 1, 1990, each month the Department shall | ||||||
22 | pay into
the County and Mass Transit District Fund 4% of the | ||||||
23 | revenue realized
for the preceding month from the 6.25% general | ||||||
24 | rate. | ||||||
25 | Beginning August 1, 2000, each
month the Department shall | ||||||
26 | pay into the
County and Mass Transit District Fund 20% of the |
| |||||||
| |||||||
1 | net revenue realized for the
preceding month from the 1.25% | ||||||
2 | rate on the selling price of motor fuel and
gasohol. | ||||||
3 | Beginning January 1, 1990, each month the Department shall | ||||||
4 | pay into
the Local Government Tax Fund 16% of the revenue | ||||||
5 | realized for the
preceding month from the 6.25% general rate on | ||||||
6 | transfers of
tangible personal property. | ||||||
7 | Beginning August 1, 2000, each
month the Department shall | ||||||
8 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
9 | realized for the preceding
month from the 1.25% rate on the | ||||||
10 | selling price of motor fuel and gasohol. | ||||||
11 | Beginning October 1, 2009, each month the Department shall | ||||||
12 | pay into the Capital Projects Fund an amount that is equal to | ||||||
13 | an amount estimated by the Department to represent 80% of the | ||||||
14 | net revenue realized for the preceding month from the sale of | ||||||
15 | candy, grooming and hygiene products, and soft drinks that had | ||||||
16 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
17 | are now taxed at 6.25%. | ||||||
18 | Beginning July 1, 2013, each month the Department shall pay | ||||||
19 | into the Underground Storage Tank Fund from the proceeds | ||||||
20 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
21 | Act, and the Retailers' Occupation Tax Act an amount equal to | ||||||
22 | the average monthly deficit in the Underground Storage Tank | ||||||
23 | Fund during the prior year, as certified annually by the | ||||||
24 | Illinois Environmental Protection Agency, but the total | ||||||
25 | payment into the Underground Storage Tank Fund under this Act, | ||||||
26 | the Use Tax Act, the Service Use Tax Act, and the Retailers' |
| |||||||
| |||||||
1 | Occupation Tax Act shall not exceed $18,000,000 in any State | ||||||
2 | fiscal year. As used in this paragraph, the "average monthly | ||||||
3 | deficit" shall be equal to the difference between the average | ||||||
4 | monthly claims for payment by the fund and the average monthly | ||||||
5 | revenues deposited into the fund, excluding payments made | ||||||
6 | pursuant to this paragraph. | ||||||
7 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
8 | received by the Department under the Use Tax Act, the Service | ||||||
9 | Use Tax Act, this Act, and the Retailers' Occupation Tax Act, | ||||||
10 | each month the Department shall deposit $500,000 into the State | ||||||
11 | Crime Laboratory Fund. | ||||||
12 | Of the remainder of the moneys received by the Department | ||||||
13 | pursuant to
this Act, (a) 1.75% thereof shall be paid into the | ||||||
14 | Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on | ||||||
15 | and after July 1, 1989, 3.8% thereof
shall be paid into the | ||||||
16 | Build Illinois Fund; provided, however, that if in
any fiscal | ||||||
17 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
| ||||||
18 | may be, of the moneys received by the Department and required | ||||||
19 | to be paid
into the Build Illinois Fund pursuant to Section 3 | ||||||
20 | of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax | ||||||
21 | Act, Section 9 of the Service
Use Tax Act, and Section 9 of the | ||||||
22 | Service Occupation Tax Act, such Acts
being hereinafter called | ||||||
23 | the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case | ||||||
24 | may be, of moneys being hereinafter called the "Tax Act
| ||||||
25 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
26 | Fund from the
State and Local Sales Tax Reform Fund shall be |
| |||||||
| |||||||
1 | less than the Annual
Specified Amount (as defined in Section 3 | ||||||
2 | of the Retailers' Occupation Tax
Act), an amount equal to the | ||||||
3 | difference shall be immediately paid into the
Build Illinois | ||||||
4 | Fund from other moneys received by the Department pursuant
to | ||||||
5 | the Tax Acts; and further provided, that if on the last | ||||||
6 | business day of
any month the sum of (1) the Tax Act Amount | ||||||
7 | required to be deposited into
the Build Illinois Account in the | ||||||
8 | Build Illinois Fund during such month and
(2) the amount | ||||||
9 | transferred during such month to the Build Illinois Fund
from | ||||||
10 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
11 | than
1/12 of the Annual Specified Amount, an amount equal to | ||||||
12 | the difference
shall be immediately paid into the Build | ||||||
13 | Illinois Fund from other moneys
received by the Department | ||||||
14 | pursuant to the Tax Acts; and, further provided,
that in no | ||||||
15 | event shall the payments required under the preceding proviso
| ||||||
16 | result in aggregate payments into the Build Illinois Fund | ||||||
17 | pursuant to this
clause (b) for any fiscal year in excess of | ||||||
18 | the greater of (i) the Tax Act
Amount or (ii) the Annual | ||||||
19 | Specified Amount for such fiscal year; and,
further provided, | ||||||
20 | that the amounts payable into the Build Illinois Fund
under | ||||||
21 | this clause (b) shall be payable only until such time as the
| ||||||
22 | aggregate amount on deposit under each trust indenture securing | ||||||
23 | Bonds
issued and outstanding pursuant to the Build Illinois | ||||||
24 | Bond Act is
sufficient, taking into account any future | ||||||
25 | investment income, to fully
provide, in accordance with such | ||||||
26 | indenture, for the defeasance of or the
payment of the |
| |||||||
| |||||||
1 | principal of, premium, if any, and interest on the Bonds
| ||||||
2 | secured by such indenture and on any Bonds expected to be | ||||||
3 | issued thereafter
and all fees and costs payable with respect | ||||||
4 | thereto, all as certified by
the Director of the
Bureau of the | ||||||
5 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
6 | the last business day of
any month in which Bonds are | ||||||
7 | outstanding pursuant to the Build Illinois
Bond Act, the | ||||||
8 | aggregate of the moneys deposited
in the Build Illinois Bond | ||||||
9 | Account in the Build Illinois Fund in such month
shall be less | ||||||
10 | than the amount required to be transferred in such month from
| ||||||
11 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
12 | Retirement and
Interest Fund pursuant to Section 13 of the | ||||||
13 | Build Illinois Bond Act, an
amount equal to such deficiency | ||||||
14 | shall be immediately paid
from other moneys received by the | ||||||
15 | Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||||||
16 | provided, however, that any amounts paid to the
Build Illinois | ||||||
17 | Fund in any fiscal year pursuant to this sentence shall be
| ||||||
18 | deemed to constitute payments pursuant to clause (b) of the | ||||||
19 | preceding
sentence and shall reduce the amount otherwise | ||||||
20 | payable for such fiscal year
pursuant to clause (b) of the | ||||||
21 | preceding sentence. The moneys received by
the Department | ||||||
22 | pursuant to this Act and required to be deposited into the
| ||||||
23 | Build Illinois Fund are subject to the pledge, claim and charge | ||||||
24 | set forth
in Section 12 of the Build Illinois Bond Act. | ||||||
25 | Subject to payment of amounts into the Build Illinois Fund | ||||||
26 | as provided in
the preceding paragraph or in any amendment |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | in
excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | 9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
9 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||
10 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||
11 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||
12 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||
13 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||
14 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||
15 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||
16 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||
17 | required under this Section for previous
months and years, | |||||||||||||||||||||||||||||||||||||||||
18 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||||||||||||||||||||||
19 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||
20 | not
in excess of the amount specified above as "Total Deposit", | |||||||||||||||||||||||||||||||||||||||||
21 | has been deposited. | |||||||||||||||||||||||||||||||||||||||||
22 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||
23 | and the
McCormick
Place Expansion Project Fund
pursuant to the | |||||||||||||||||||||||||||||||||||||||||
24 | preceding paragraphs or in any amendments thereto hereafter
| |||||||||||||||||||||||||||||||||||||||||
25 | enacted, beginning July 1, 1993 and ending on September 30, | |||||||||||||||||||||||||||||||||||||||||
26 | 2013, the Department shall each month pay into the
Illinois Tax |
| |||||||
| |||||||
1 | Increment Fund 0.27% of 80% of the net revenue realized for the
| ||||||
2 | preceding month from the 6.25% general rate on the selling | ||||||
3 | price of tangible
personal property. | ||||||
4 | Subject to payment of amounts into the Build Illinois Fund | ||||||
5 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
6 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
7 | enacted, beginning with the receipt of the first
report of | ||||||
8 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
9 | period, the Department shall each month pay into the Energy | ||||||
10 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
11 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
12 | that was sold to an eligible business.
For purposes of this | ||||||
13 | paragraph, the term "eligible business" means a new
electric | ||||||
14 | generating facility certified pursuant to Section 605-332 of | ||||||
15 | the
Department of Commerce and
Economic Opportunity Law of the | ||||||
16 | Civil Administrative
Code of Illinois. | ||||||
17 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
18 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
19 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
20 | the preceding paragraphs or in any amendments to this Section | ||||||
21 | hereafter enacted, beginning on the first day of the first | ||||||
22 | calendar month to occur on or after the effective date of this | ||||||
23 | amendatory Act of the 98th General Assembly, each month, from | ||||||
24 | the collections made under Section 9 of the Use Tax Act, | ||||||
25 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
26 | Occupation Tax Act, and Section 3 of the Retailers' Occupation |
| |||||||
| |||||||
1 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
2 | Administration Fund, to be used, subject to appropriation, to | ||||||
3 | fund additional auditors and compliance personnel at the | ||||||
4 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
5 | the cash receipts collected during the preceding fiscal year by | ||||||
6 | the Audit Bureau of the Department under the Use Tax Act, the | ||||||
7 | Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
8 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
9 | and use taxes administered by the Department. | ||||||
10 | Of the remainder of the moneys received by the Department | ||||||
11 | pursuant to this
Act, 75% shall be paid into the General | ||||||
12 | Revenue Fund of the State Treasury and 25% shall be reserved in | ||||||
13 | a special account and used only for the transfer to the Common | ||||||
14 | School Fund as part of the monthly transfer from the General | ||||||
15 | Revenue Fund in accordance with Section 8a of the State Finance | ||||||
16 | Act. | ||||||
17 | The Department may, upon separate written notice to a | ||||||
18 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
19 | Department on a form
prescribed by the Department within not | ||||||
20 | less than 60 days after receipt
of the notice an annual | ||||||
21 | information return for the tax year specified in
the notice. | ||||||
22 | Such annual return to the Department shall include a
statement | ||||||
23 | of gross receipts as shown by the taxpayer's last Federal | ||||||
24 | income
tax return. If the total receipts of the business as | ||||||
25 | reported in the
Federal income tax return do not agree with the | ||||||
26 | gross receipts reported to
the Department of Revenue for the |
| |||||||
| |||||||
1 | same period, the taxpayer shall attach
to his annual return a | ||||||
2 | schedule showing a reconciliation of the 2
amounts and the | ||||||
3 | reasons for the difference. The taxpayer's annual
return to the | ||||||
4 | Department shall also disclose the cost of goods sold by
the | ||||||
5 | taxpayer during the year covered by such return, opening and | ||||||
6 | closing
inventories of such goods for such year, cost of goods | ||||||
7 | used from stock
or taken from stock and given away by the | ||||||
8 | taxpayer during such year, pay
roll information of the | ||||||
9 | taxpayer's business during such year and any
additional | ||||||
10 | reasonable information which the Department deems would be
| ||||||
11 | helpful in determining the accuracy of the monthly, quarterly | ||||||
12 | or annual
returns filed by such taxpayer as hereinbefore | ||||||
13 | provided for in this
Section. | ||||||
14 | If the annual information return required by this Section | ||||||
15 | is not
filed when and as required, the taxpayer shall be liable | ||||||
16 | as follows: | ||||||
17 | (i) Until January 1, 1994, the taxpayer shall be liable
| ||||||
18 | for a penalty equal to 1/6 of 1% of the tax due from such | ||||||
19 | taxpayer
under this Act during the period to be covered by | ||||||
20 | the annual return
for each month or fraction of a month | ||||||
21 | until such return is filed as
required, the penalty to be | ||||||
22 | assessed and collected in the same manner
as any other | ||||||
23 | penalty provided for in this Act. | ||||||
24 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
25 | be liable for a
penalty as described in Section 3-4 of the | ||||||
26 | Uniform Penalty and Interest Act. |
| |||||||
| |||||||
1 | The chief executive officer, proprietor, owner or highest | ||||||
2 | ranking
manager shall sign the annual return to certify the | ||||||
3 | accuracy of the
information contained therein. Any person who | ||||||
4 | willfully signs the
annual return containing false or | ||||||
5 | inaccurate information shall be guilty
of perjury and punished | ||||||
6 | accordingly. The annual return form prescribed
by the | ||||||
7 | Department shall include a warning that the person signing the
| ||||||
8 | return may be liable for perjury. | ||||||
9 | The foregoing portion of this Section concerning the filing | ||||||
10 | of an
annual information return shall not apply to a serviceman | ||||||
11 | who is not
required to file an income tax return with the | ||||||
12 | United States Government. | ||||||
13 | As soon as possible after the first day of each month, upon | ||||||
14 | certification
of the Department of Revenue, the Comptroller | ||||||
15 | shall order transferred and
the Treasurer shall transfer from | ||||||
16 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
17 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
18 | for the second preceding month.
Beginning April 1, 2000, this | ||||||
19 | transfer is no longer required
and shall not be made. | ||||||
20 | Net revenue realized for a month shall be the revenue | ||||||
21 | collected by the State
pursuant to this Act, less the amount | ||||||
22 | paid out during that month as
refunds to taxpayers for | ||||||
23 | overpayment of liability. | ||||||
24 | For greater simplicity of administration, it shall be | ||||||
25 | permissible for
manufacturers, importers and wholesalers whose | ||||||
26 | products are sold by numerous
servicemen in Illinois, and who |
| |||||||
| |||||||
1 | wish to do so, to
assume the responsibility for accounting and | ||||||
2 | paying to the Department
all tax accruing under this Act with | ||||||
3 | respect to such sales, if the
servicemen who are affected do | ||||||
4 | not make written objection to the
Department to this | ||||||
5 | arrangement. | ||||||
6 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
7 | 98-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; | ||||||
8 | 98-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. | ||||||
9 | 8-19-16.)
| ||||||
10 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
11 | changing Section 3 as follows:
| ||||||
12 | (35 ILCS 120/3) (from Ch. 120, par. 442)
| ||||||
13 | Sec. 3. Except as provided in this Section, on or before | ||||||
14 | the twentieth
day of each calendar month, every person engaged | ||||||
15 | in the business of
selling tangible personal property at retail | ||||||
16 | in this State during the
preceding calendar month shall file a | ||||||
17 | return with the Department, stating: | ||||||
18 | 1. The name of the seller; | ||||||
19 | 2. His residence address and the address of his | ||||||
20 | principal place of
business and the address of the | ||||||
21 | principal place of business (if that is
a different | ||||||
22 | address) from which he engages in the business of selling
| ||||||
23 | tangible personal property at retail in this State; | ||||||
24 | 3. Total amount of receipts received by him during the |
| |||||||
| |||||||
1 | preceding
calendar month or quarter, as the case may be, | ||||||
2 | from sales of tangible
personal property, and from services | ||||||
3 | furnished, by him during such
preceding calendar month or | ||||||
4 | quarter; | ||||||
5 | 4. Total amount received by him during the preceding | ||||||
6 | calendar month or
quarter on charge and time sales of | ||||||
7 | tangible personal property, and from
services furnished, | ||||||
8 | by him prior to the month or quarter for which the return
| ||||||
9 | is filed; | ||||||
10 | 5. Deductions allowed by law; | ||||||
11 | 6. Gross receipts which were received by him during the | ||||||
12 | preceding
calendar month or quarter and upon the basis of | ||||||
13 | which the tax is imposed; | ||||||
14 | 7. The amount of credit provided in Section 2d of this | ||||||
15 | Act; | ||||||
16 | 8. The amount of tax due; | ||||||
17 | 9. The signature of the taxpayer; and | ||||||
18 | 10. Such other reasonable information as the | ||||||
19 | Department may require. | ||||||
20 | If a taxpayer fails to sign a return within 30 days after | ||||||
21 | the proper notice
and demand for signature by the Department, | ||||||
22 | the return shall be considered
valid and any amount shown to be | ||||||
23 | due on the return shall be deemed assessed. | ||||||
24 | Each return shall be accompanied by the statement of | ||||||
25 | prepaid tax issued
pursuant to Section 2e for which credit is | ||||||
26 | claimed. |
| |||||||
| |||||||
1 | Prior to October 1, 2003, and on and after September 1, | ||||||
2 | 2004 a retailer may accept a Manufacturer's Purchase
Credit
| ||||||
3 | certification from a purchaser in satisfaction of Use Tax
as | ||||||
4 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
5 | provides the
appropriate documentation as required by Section | ||||||
6 | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| ||||||
7 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
8 | and on and after September 1, 2004 as provided
in
Section 3-85 | ||||||
9 | of the Use Tax Act, may be used by that retailer to
satisfy | ||||||
10 | Retailers' Occupation Tax liability in the amount claimed in
| ||||||
11 | the certification, not to exceed 6.25% of the receipts
subject | ||||||
12 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
13 | Credit
reported on any original or amended return
filed under
| ||||||
14 | this Act after October 20, 2003 for reporting periods prior to | ||||||
15 | September 1, 2004 shall be disallowed. Manufacturer's | ||||||
16 | Purchaser Credit reported on annual returns due on or after | ||||||
17 | January 1, 2005 will be disallowed for periods prior to | ||||||
18 | September 1, 2004. No Manufacturer's
Purchase Credit may be | ||||||
19 | used after September 30, 2003 through August 31, 2004 to
| ||||||
20 | satisfy any
tax liability imposed under this Act, including any | ||||||
21 | audit liability. | ||||||
22 | The Department may require returns to be filed on a | ||||||
23 | quarterly basis.
If so required, a return for each calendar | ||||||
24 | quarter shall be filed on or
before the twentieth day of the | ||||||
25 | calendar month following the end of such
calendar quarter. The | ||||||
26 | taxpayer shall also file a return with the
Department for each |
| |||||||
| |||||||
1 | of the first two months of each calendar quarter, on or
before | ||||||
2 | the twentieth day of the following calendar month, stating: | ||||||
3 | 1. The name of the seller; | ||||||
4 | 2. The address of the principal place of business from | ||||||
5 | which he engages
in the business of selling tangible | ||||||
6 | personal property at retail in this State; | ||||||
7 | 3. The total amount of taxable receipts received by him | ||||||
8 | during the
preceding calendar month from sales of tangible | ||||||
9 | personal property by him
during such preceding calendar | ||||||
10 | month, including receipts from charge and
time sales, but | ||||||
11 | less all deductions allowed by law; | ||||||
12 | 4. The amount of credit provided in Section 2d of this | ||||||
13 | Act; | ||||||
14 | 5. The amount of tax due; and | ||||||
15 | 6. Such other reasonable information as the Department | ||||||
16 | may
require. | ||||||
17 | Beginning on October 1, 2003, any person who is not a | ||||||
18 | licensed
distributor, importing distributor, or manufacturer, | ||||||
19 | as defined in the Liquor
Control Act of 1934, but is engaged in | ||||||
20 | the business of
selling, at retail, alcoholic liquor
shall file | ||||||
21 | a statement with the Department of Revenue, in a format
and at | ||||||
22 | a time prescribed by the Department, showing the total amount | ||||||
23 | paid for
alcoholic liquor purchased during the preceding month | ||||||
24 | and such other
information as is reasonably required by the | ||||||
25 | Department.
The Department may adopt rules to require
that this | ||||||
26 | statement be filed in an electronic or telephonic format. Such |
| |||||||
| |||||||
1 | rules
may provide for exceptions from the filing requirements | ||||||
2 | of this paragraph. For
the
purposes of this
paragraph, the term | ||||||
3 | "alcoholic liquor" shall have the meaning prescribed in the
| ||||||
4 | Liquor Control Act of 1934. | ||||||
5 | Beginning on October 1, 2003, every distributor, importing | ||||||
6 | distributor, and
manufacturer of alcoholic liquor as defined in | ||||||
7 | the Liquor Control Act of 1934,
shall file a
statement with the | ||||||
8 | Department of Revenue, no later than the 10th day of the
month | ||||||
9 | for the
preceding month during which transactions occurred, by | ||||||
10 | electronic means,
showing the
total amount of gross receipts | ||||||
11 | from the sale of alcoholic liquor sold or
distributed during
| ||||||
12 | the preceding month to purchasers; identifying the purchaser to | ||||||
13 | whom it was
sold or
distributed; the purchaser's tax | ||||||
14 | registration number; and such other
information
reasonably | ||||||
15 | required by the Department. A distributor, importing | ||||||
16 | distributor, or manufacturer of alcoholic liquor must | ||||||
17 | personally deliver, mail, or provide by electronic means to | ||||||
18 | each retailer listed on the monthly statement a report | ||||||
19 | containing a cumulative total of that distributor's, importing | ||||||
20 | distributor's, or manufacturer's total sales of alcoholic | ||||||
21 | liquor to that retailer no later than the 10th day of the month | ||||||
22 | for the preceding month during which the transaction occurred. | ||||||
23 | The distributor, importing distributor, or manufacturer shall | ||||||
24 | notify the retailer as to the method by which the distributor, | ||||||
25 | importing distributor, or manufacturer will provide the sales | ||||||
26 | information. If the retailer is unable to receive the sales |
| |||||||
| |||||||
1 | information by electronic means, the distributor, importing | ||||||
2 | distributor, or manufacturer shall furnish the sales | ||||||
3 | information by personal delivery or by mail. For purposes of | ||||||
4 | this paragraph, the term "electronic means" includes, but is | ||||||
5 | not limited to, the use of a secure Internet website, e-mail, | ||||||
6 | or facsimile. | ||||||
7 | If a total amount of less than $1 is payable, refundable or | ||||||
8 | creditable,
such amount shall be disregarded if it is less than | ||||||
9 | 50 cents and shall be
increased to $1 if it is 50 cents or more. | ||||||
10 | Beginning October 1, 1993,
a taxpayer who has an average | ||||||
11 | monthly tax liability of $150,000 or more shall
make all | ||||||
12 | payments required by rules of the
Department by electronic | ||||||
13 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
14 | an average monthly tax liability of $100,000 or more shall make | ||||||
15 | all
payments required by rules of the Department by electronic | ||||||
16 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
17 | an average monthly tax liability
of $50,000 or more shall make | ||||||
18 | all
payments required by rules of the Department by electronic | ||||||
19 | funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||||||
20 | an annual tax liability of
$200,000 or more shall make all | ||||||
21 | payments required by rules of the Department by
electronic | ||||||
22 | funds transfer. The term "annual tax liability" shall be the | ||||||
23 | sum of
the taxpayer's liabilities under this Act, and under all | ||||||
24 | other State and local
occupation and use tax laws administered | ||||||
25 | by the Department, for the immediately
preceding calendar year.
| ||||||
26 | The term "average monthly tax liability" shall be the sum of |
| |||||||
| |||||||
1 | the
taxpayer's liabilities under this
Act, and under all other | ||||||
2 | State and local occupation and use tax
laws administered by the | ||||||
3 | Department, for the immediately preceding calendar
year | ||||||
4 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
5 | a tax liability in the
amount set forth in subsection (b) of | ||||||
6 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
7 | all payments required by rules of the Department by
electronic | ||||||
8 | funds transfer. | ||||||
9 | Before August 1 of each year beginning in 1993, the | ||||||
10 | Department shall
notify all taxpayers required to make payments | ||||||
11 | by electronic funds
transfer. All taxpayers
required to make | ||||||
12 | payments by electronic funds transfer shall make those
payments | ||||||
13 | for
a minimum of one year beginning on October 1. | ||||||
14 | Any taxpayer not required to make payments by electronic | ||||||
15 | funds transfer may
make payments by electronic funds transfer | ||||||
16 | with
the permission of the Department. | ||||||
17 | All taxpayers required to make payment by electronic funds | ||||||
18 | transfer and
any taxpayers authorized to voluntarily make | ||||||
19 | payments by electronic funds
transfer shall make those payments | ||||||
20 | in the manner authorized by the Department. | ||||||
21 | The Department shall adopt such rules as are necessary to | ||||||
22 | effectuate a
program of electronic funds transfer and the | ||||||
23 | requirements of this Section. | ||||||
24 | Any amount which is required to be shown or reported on any | ||||||
25 | return or
other document under this Act shall, if such amount | ||||||
26 | is not a whole-dollar
amount, be increased to the nearest |
| |||||||
| |||||||
1 | whole-dollar amount in any case where
the fractional part of a | ||||||
2 | dollar is 50 cents or more, and decreased to the
nearest | ||||||
3 | whole-dollar amount where the fractional part of a dollar is | ||||||
4 | less
than 50 cents. | ||||||
5 | If the retailer is otherwise required to file a monthly | ||||||
6 | return and if the
retailer's average monthly tax liability to | ||||||
7 | the Department does not exceed
$200, the Department may | ||||||
8 | authorize his returns to be filed on a quarter
annual basis, | ||||||
9 | with the return for January, February and March of a given
year | ||||||
10 | being due by April 20 of such year; with the return for April, | ||||||
11 | May and
June of a given year being due by July 20 of such year; | ||||||
12 | with the return for
July, August and September of a given year | ||||||
13 | being due by October 20 of such
year, and with the return for | ||||||
14 | October, November and December of a given
year being due by | ||||||
15 | January 20 of the following year. | ||||||
16 | If the retailer is otherwise required to file a monthly or | ||||||
17 | quarterly
return and if the retailer's average monthly tax | ||||||
18 | liability with the
Department does not exceed $50, the | ||||||
19 | Department may authorize his returns to
be filed on an annual | ||||||
20 | basis, with the return for a given year being due by
January 20 | ||||||
21 | of the following year. | ||||||
22 | Such quarter annual and annual returns, as to form and | ||||||
23 | substance,
shall be subject to the same requirements as monthly | ||||||
24 | returns. | ||||||
25 | Notwithstanding any other provision in this Act concerning | ||||||
26 | the time
within which a retailer may file his return, in the |
| |||||||
| |||||||
1 | case of any retailer
who ceases to engage in a kind of business | ||||||
2 | which makes him responsible
for filing returns under this Act, | ||||||
3 | such retailer shall file a final
return under this Act with the | ||||||
4 | Department not more than one month after
discontinuing such | ||||||
5 | business. | ||||||
6 | Where the same person has more than one business registered | ||||||
7 | with the
Department under separate registrations under this | ||||||
8 | Act, such person may
not file each return that is due as a | ||||||
9 | single return covering all such
registered businesses, but | ||||||
10 | shall file separate returns for each such
registered business. | ||||||
11 | In addition, with respect to motor vehicles, watercraft,
| ||||||
12 | aircraft, and trailers that are required to be registered with | ||||||
13 | an agency of
this State, every
retailer selling this kind of | ||||||
14 | tangible personal property shall file,
with the Department, | ||||||
15 | upon a form to be prescribed and supplied by the
Department, a | ||||||
16 | separate return for each such item of tangible personal
| ||||||
17 | property which the retailer sells, except that if, in the same
| ||||||
18 | transaction, (i) a retailer of aircraft, watercraft, motor | ||||||
19 | vehicles or
trailers transfers more than one aircraft, | ||||||
20 | watercraft, motor
vehicle or trailer to another aircraft, | ||||||
21 | watercraft, motor vehicle
retailer or trailer retailer for the | ||||||
22 | purpose of resale
or (ii) a retailer of aircraft, watercraft, | ||||||
23 | motor vehicles, or trailers
transfers more than one aircraft, | ||||||
24 | watercraft, motor vehicle, or trailer to a
purchaser for use as | ||||||
25 | a qualifying rolling stock as provided in Section 2-5 of
this | ||||||
26 | Act, then
that seller may report the transfer of all aircraft,
|
| |||||||
| |||||||
1 | watercraft, motor vehicles or trailers involved in that | ||||||
2 | transaction to the
Department on the same uniform | ||||||
3 | invoice-transaction reporting return form. For
purposes of | ||||||
4 | this Section, "watercraft" means a Class 2, Class 3, or Class 4
| ||||||
5 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
6 | and Safety Act, a
personal watercraft, or any boat equipped | ||||||
7 | with an inboard motor. | ||||||
8 | Any retailer who sells only motor vehicles, watercraft,
| ||||||
9 | aircraft, or trailers that are required to be registered with | ||||||
10 | an agency of
this State, so that all
retailers' occupation tax | ||||||
11 | liability is required to be reported, and is
reported, on such | ||||||
12 | transaction reporting returns and who is not otherwise
required | ||||||
13 | to file monthly or quarterly returns, need not file monthly or
| ||||||
14 | quarterly returns. However, those retailers shall be required | ||||||
15 | to
file returns on an annual basis. | ||||||
16 | The transaction reporting return, in the case of motor | ||||||
17 | vehicles
or trailers that are required to be registered with an | ||||||
18 | agency of this
State, shall
be the same document as the Uniform | ||||||
19 | Invoice referred to in Section 5-402
of The Illinois Vehicle | ||||||
20 | Code and must show the name and address of the
seller; the name | ||||||
21 | and address of the purchaser; the amount of the selling
price | ||||||
22 | including the amount allowed by the retailer for traded-in
| ||||||
23 | property, if any; the amount allowed by the retailer for the | ||||||
24 | traded-in
tangible personal property, if any, to the extent to | ||||||
25 | which Section 1 of
this Act allows an exemption for the value | ||||||
26 | of traded-in property; the
balance payable after deducting such |
| |||||||
| |||||||
1 | trade-in allowance from the total
selling price; the amount of | ||||||
2 | tax due from the retailer with respect to
such transaction; the | ||||||
3 | amount of tax collected from the purchaser by the
retailer on | ||||||
4 | such transaction (or satisfactory evidence that such tax is
not | ||||||
5 | due in that particular instance, if that is claimed to be the | ||||||
6 | fact);
the place and date of the sale; a sufficient | ||||||
7 | identification of the
property sold; such other information as | ||||||
8 | is required in Section 5-402 of
The Illinois Vehicle Code, and | ||||||
9 | such other information as the Department
may reasonably | ||||||
10 | require. | ||||||
11 | The transaction reporting return in the case of watercraft
| ||||||
12 | or aircraft must show
the name and address of the seller; the | ||||||
13 | name and address of the
purchaser; the amount of the selling | ||||||
14 | price including the amount allowed
by the retailer for | ||||||
15 | traded-in property, if any; the amount allowed by
the retailer | ||||||
16 | for the traded-in tangible personal property, if any, to
the | ||||||
17 | extent to which Section 1 of this Act allows an exemption for | ||||||
18 | the
value of traded-in property; the balance payable after | ||||||
19 | deducting such
trade-in allowance from the total selling price; | ||||||
20 | the amount of tax due
from the retailer with respect to such | ||||||
21 | transaction; the amount of tax
collected from the purchaser by | ||||||
22 | the retailer on such transaction (or
satisfactory evidence that | ||||||
23 | such tax is not due in that particular
instance, if that is | ||||||
24 | claimed to be the fact); the place and date of the
sale, a | ||||||
25 | sufficient identification of the property sold, and such other
| ||||||
26 | information as the Department may reasonably require. |
| |||||||
| |||||||
1 | Such transaction reporting return shall be filed not later | ||||||
2 | than 20
days after the day of delivery of the item that is | ||||||
3 | being sold, but may
be filed by the retailer at any time sooner | ||||||
4 | than that if he chooses to
do so. The transaction reporting | ||||||
5 | return and tax remittance or proof of
exemption from the | ||||||
6 | Illinois use tax may be transmitted to the Department
by way of | ||||||
7 | the State agency with which, or State officer with whom the
| ||||||
8 | tangible personal property must be titled or registered (if | ||||||
9 | titling or
registration is required) if the Department and such | ||||||
10 | agency or State
officer determine that this procedure will | ||||||
11 | expedite the processing of
applications for title or | ||||||
12 | registration. | ||||||
13 | With each such transaction reporting return, the retailer | ||||||
14 | shall remit
the proper amount of tax due (or shall submit | ||||||
15 | satisfactory evidence that
the sale is not taxable if that is | ||||||
16 | the case), to the Department or its
agents, whereupon the | ||||||
17 | Department shall issue, in the purchaser's name, a
use tax | ||||||
18 | receipt (or a certificate of exemption if the Department is
| ||||||
19 | satisfied that the particular sale is tax exempt) which such | ||||||
20 | purchaser
may submit to the agency with which, or State officer | ||||||
21 | with whom, he must
title or register the tangible personal | ||||||
22 | property that is involved (if
titling or registration is | ||||||
23 | required) in support of such purchaser's
application for an | ||||||
24 | Illinois certificate or other evidence of title or
registration | ||||||
25 | to such tangible personal property. | ||||||
26 | No retailer's failure or refusal to remit tax under this |
| |||||||
| |||||||
1 | Act
precludes a user, who has paid the proper tax to the | ||||||
2 | retailer, from
obtaining his certificate of title or other | ||||||
3 | evidence of title or
registration (if titling or registration | ||||||
4 | is required) upon satisfying
the Department that such user has | ||||||
5 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
6 | Department shall adopt appropriate rules to carry out
the | ||||||
7 | mandate of this paragraph. | ||||||
8 | If the user who would otherwise pay tax to the retailer | ||||||
9 | wants the
transaction reporting return filed and the payment of | ||||||
10 | the tax or proof
of exemption made to the Department before the | ||||||
11 | retailer is willing to
take these actions and such user has not | ||||||
12 | paid the tax to the retailer,
such user may certify to the fact | ||||||
13 | of such delay by the retailer and may
(upon the Department | ||||||
14 | being satisfied of the truth of such certification)
transmit | ||||||
15 | the information required by the transaction reporting return
| ||||||
16 | and the remittance for tax or proof of exemption directly to | ||||||
17 | the
Department and obtain his tax receipt or exemption | ||||||
18 | determination, in
which event the transaction reporting return | ||||||
19 | and tax remittance (if a
tax payment was required) shall be | ||||||
20 | credited by the Department to the
proper retailer's account | ||||||
21 | with the Department, but without the vendor's 2.1% or 1.75%
| ||||||
22 | discount provided for in this Section being allowed. When the | ||||||
23 | user pays
the tax directly to the Department, he shall pay the | ||||||
24 | tax in the same
amount and in the same form in which it would be | ||||||
25 | remitted if the tax had
been remitted to the Department by the | ||||||
26 | retailer. |
| |||||||
| |||||||
1 | Refunds made by the seller during the preceding return | ||||||
2 | period to
purchasers, on account of tangible personal property | ||||||
3 | returned to the
seller, shall be allowed as a deduction under | ||||||
4 | subdivision 5 of his monthly
or quarterly return, as the case | ||||||
5 | may be, in case the
seller had theretofore included the | ||||||
6 | receipts from the sale of such
tangible personal property in a | ||||||
7 | return filed by him and had paid the tax
imposed by this Act | ||||||
8 | with respect to such receipts. | ||||||
9 | Where the seller is a corporation, the return filed on | ||||||
10 | behalf of such
corporation shall be signed by the president, | ||||||
11 | vice-president, secretary
or treasurer or by the properly | ||||||
12 | accredited agent of such corporation. | ||||||
13 | Where the seller is a limited liability company, the return | ||||||
14 | filed on behalf
of the limited liability company shall be | ||||||
15 | signed by a manager, member, or
properly accredited agent of | ||||||
16 | the limited liability company. | ||||||
17 | Except as provided in this Section, the retailer filing the | ||||||
18 | return
under this Section shall, at the time of filing such | ||||||
19 | return, pay to the
Department the amount of tax imposed by this | ||||||
20 | Act less the vendor discount amount a discount of 2.1%
prior to | ||||||
21 | January 1, 1990 and 1.75% on and after January 1, 1990, or $5 | ||||||
22 | per
calendar year, whichever is greater , which is allowed to
| ||||||
23 | reimburse the retailer for the expenses incurred in keeping | ||||||
24 | records,
preparing and filing returns, remitting the tax and | ||||||
25 | supplying data to
the Department on request. On and after | ||||||
26 | January 1, 1990 and prior to January 1, 2018, the vendor |
| |||||||
| |||||||
1 | discount amount shall be 1.75% or $5 per calendar
year, | ||||||
2 | whichever is greater. On and after January 1, 2018, the vendor | ||||||
3 | discount amount shall be the sum of (i) 1.75% of the first | ||||||
4 | $1,000 collected during the calendar year and (ii) 1% of the | ||||||
5 | amount of proceeds collected during the calendar year that | ||||||
6 | exceeds $1,000; however, on and after January 1, 2018, in no | ||||||
7 | event shall the discount allowed to any vendor be less than $5 | ||||||
8 | in any calendar year or more than $1,500 in any calendar year. | ||||||
9 | Any prepayment made pursuant to Section 2d
of this Act shall be | ||||||
10 | included in the amount on which such
2.1% or 1.75% discount is | ||||||
11 | computed. In the case of retailers who report
and pay the tax | ||||||
12 | on a transaction by transaction basis, as provided in this
| ||||||
13 | Section, such discount shall be taken with each such tax | ||||||
14 | remittance
instead of when such retailer files his periodic | ||||||
15 | return. The Department may disallow the discount for retailers | ||||||
16 | whose certificate of registration is revoked at the time the | ||||||
17 | return is filed, but only if the Department's decision to | ||||||
18 | revoke the certificate of registration has become final. | ||||||
19 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
20 | tax liability
to the Department
under this Act, the Use Tax | ||||||
21 | Act, the Service Occupation Tax
Act, and the Service Use Tax | ||||||
22 | Act, excluding any liability for prepaid sales
tax to be | ||||||
23 | remitted in accordance with Section 2d of this Act, was
$10,000
| ||||||
24 | or more during the preceding 4 complete calendar quarters, he | ||||||
25 | shall file a
return with the Department each month by the 20th | ||||||
26 | day of the month next
following the month during which such tax |
| |||||||
| |||||||
1 | liability is incurred and shall
make payments to the Department | ||||||
2 | on or before the 7th, 15th, 22nd and last
day of the month | ||||||
3 | during which such liability is incurred.
On and after October | ||||||
4 | 1, 2000, if the taxpayer's average monthly tax liability
to the | ||||||
5 | Department under this Act, the Use Tax Act, the Service | ||||||
6 | Occupation Tax
Act, and the Service Use Tax Act, excluding any | ||||||
7 | liability for prepaid sales tax
to be remitted in accordance | ||||||
8 | with Section 2d of this Act, was $20,000 or more
during the | ||||||
9 | preceding 4 complete calendar quarters, he shall file a return | ||||||
10 | with
the Department each month by the 20th day of the month | ||||||
11 | next following the month
during which such tax liability is | ||||||
12 | incurred and shall make payment to the
Department on or before | ||||||
13 | the 7th, 15th, 22nd and last day of the month during
which such | ||||||
14 | liability is incurred.
If the month
during which such tax | ||||||
15 | liability is incurred began prior to January 1, 1985,
each | ||||||
16 | payment shall be in an amount equal to 1/4 of the taxpayer's | ||||||
17 | actual
liability for the month or an amount set by the | ||||||
18 | Department not to exceed
1/4 of the average monthly liability | ||||||
19 | of the taxpayer to the Department for
the preceding 4 complete | ||||||
20 | calendar quarters (excluding the month of highest
liability and | ||||||
21 | the month of lowest liability in such 4 quarter period). If
the | ||||||
22 | month during which such tax liability is incurred begins on or | ||||||
23 | after
January 1, 1985 and prior to January 1, 1987, each | ||||||
24 | payment shall be in an
amount equal to 22.5% of the taxpayer's | ||||||
25 | actual liability for the month or
27.5% of the taxpayer's | ||||||
26 | liability for the same calendar
month of the preceding year. If |
| |||||||
| |||||||
1 | the month during which such tax
liability is incurred begins on | ||||||
2 | or after January 1, 1987 and prior to
January 1, 1988, each | ||||||
3 | payment shall be in an amount equal to 22.5% of the
taxpayer's | ||||||
4 | actual liability for the month or 26.25% of the taxpayer's
| ||||||
5 | liability for the same calendar month of the preceding year. If | ||||||
6 | the month
during which such tax liability is incurred begins on | ||||||
7 | or after January 1,
1988, and prior to January 1, 1989, or | ||||||
8 | begins on or after January 1, 1996, each
payment shall be in an | ||||||
9 | amount
equal to 22.5% of the taxpayer's actual liability for | ||||||
10 | the month or 25% of
the taxpayer's liability for the same | ||||||
11 | calendar month of the preceding year. If
the month during which | ||||||
12 | such tax liability is incurred begins on or after
January 1, | ||||||
13 | 1989, and prior to January 1, 1996, each payment shall be in an
| ||||||
14 | amount equal to 22.5% of the
taxpayer's actual liability for | ||||||
15 | the month or 25% of the taxpayer's
liability for the same | ||||||
16 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
17 | actual liability for the quarter monthly reporting period. The
| ||||||
18 | amount of such quarter monthly payments shall be credited | ||||||
19 | against
the final tax liability of the taxpayer's return for | ||||||
20 | that month. Before
October 1, 2000, once
applicable, the | ||||||
21 | requirement of the making of quarter monthly payments to
the | ||||||
22 | Department by taxpayers having an average monthly tax liability | ||||||
23 | of
$10,000 or more as determined in the manner provided above
| ||||||
24 | shall continue
until such taxpayer's average monthly liability | ||||||
25 | to the Department during
the preceding 4 complete calendar | ||||||
26 | quarters (excluding the month of highest
liability and the |
| |||||||
| |||||||
1 | month of lowest liability) is less than
$9,000, or until
such | ||||||
2 | taxpayer's average monthly liability to the Department as | ||||||
3 | computed for
each calendar quarter of the 4 preceding complete | ||||||
4 | calendar quarter period
is less than $10,000. However, if a | ||||||
5 | taxpayer can show the
Department that
a substantial change in | ||||||
6 | the taxpayer's business has occurred which causes
the taxpayer | ||||||
7 | to anticipate that his average monthly tax liability for the
| ||||||
8 | reasonably foreseeable future will fall below the $10,000 | ||||||
9 | threshold
stated above, then
such taxpayer
may petition the | ||||||
10 | Department for a change in such taxpayer's reporting
status. On | ||||||
11 | and after October 1, 2000, once applicable, the requirement of
| ||||||
12 | the making of quarter monthly payments to the Department by | ||||||
13 | taxpayers having an
average monthly tax liability of $20,000 or | ||||||
14 | more as determined in the manner
provided above shall continue | ||||||
15 | until such taxpayer's average monthly liability
to the | ||||||
16 | Department during the preceding 4 complete calendar quarters | ||||||
17 | (excluding
the month of highest liability and the month of | ||||||
18 | lowest liability) is less than
$19,000 or until such taxpayer's | ||||||
19 | average monthly liability to the Department as
computed for | ||||||
20 | each calendar quarter of the 4 preceding complete calendar | ||||||
21 | quarter
period is less than $20,000. However, if a taxpayer can | ||||||
22 | show the Department
that a substantial change in the taxpayer's | ||||||
23 | business has occurred which causes
the taxpayer to anticipate | ||||||
24 | that his average monthly tax liability for the
reasonably | ||||||
25 | foreseeable future will fall below the $20,000 threshold stated
| ||||||
26 | above, then such taxpayer may petition the Department for a |
| |||||||
| |||||||
1 | change in such
taxpayer's reporting status. The Department | ||||||
2 | shall change such taxpayer's
reporting status
unless it finds | ||||||
3 | that such change is seasonal in nature and not likely to be
| ||||||
4 | long term. If any such quarter monthly payment is not paid at | ||||||
5 | the time or
in the amount required by this Section, then the | ||||||
6 | taxpayer shall be liable for
penalties and interest on the | ||||||
7 | difference
between the minimum amount due as a payment and the | ||||||
8 | amount of such quarter
monthly payment actually and timely | ||||||
9 | paid, except insofar as the
taxpayer has previously made | ||||||
10 | payments for that month to the Department in
excess of the | ||||||
11 | minimum payments previously due as provided in this Section.
| ||||||
12 | The Department shall make reasonable rules and regulations to | ||||||
13 | govern the
quarter monthly payment amount and quarter monthly | ||||||
14 | payment dates for
taxpayers who file on other than a calendar | ||||||
15 | monthly basis. | ||||||
16 | The provisions of this paragraph apply before October 1, | ||||||
17 | 2001.
Without regard to whether a taxpayer is required to make | ||||||
18 | quarter monthly
payments as specified above, any taxpayer who | ||||||
19 | is required by Section 2d
of this Act to collect and remit | ||||||
20 | prepaid taxes and has collected prepaid
taxes which average in | ||||||
21 | excess of $25,000 per month during the preceding
2 complete | ||||||
22 | calendar quarters, shall file a return with the Department as
| ||||||
23 | required by Section 2f and shall make payments to the | ||||||
24 | Department on or before
the 7th, 15th, 22nd and last day of the | ||||||
25 | month during which such liability
is incurred. If the month | ||||||
26 | during which such tax liability is incurred
began prior to |
| |||||||
| |||||||
1 | September 1, 1985 ( the effective date of Public Act 84-221) | ||||||
2 | this amendatory Act of 1985 , each
payment shall be in an amount | ||||||
3 | not less than 22.5% of the taxpayer's actual
liability under | ||||||
4 | Section 2d. If the month during which such tax liability
is | ||||||
5 | incurred begins on or after January 1, 1986, each payment shall | ||||||
6 | be in an
amount equal to 22.5% of the taxpayer's actual | ||||||
7 | liability for the month or
27.5% of the taxpayer's liability | ||||||
8 | for the same calendar month of the
preceding calendar year. If | ||||||
9 | the month during which such tax liability is
incurred begins on | ||||||
10 | or after January 1, 1987, each payment shall be in an
amount | ||||||
11 | equal to 22.5% of the taxpayer's actual liability for the month | ||||||
12 | or
26.25% of the taxpayer's liability for the same calendar | ||||||
13 | month of the
preceding year. The amount of such quarter monthly | ||||||
14 | payments shall be
credited against the final tax liability of | ||||||
15 | the taxpayer's return for that
month filed under this Section | ||||||
16 | or Section 2f, as the case may be. Once
applicable, the | ||||||
17 | requirement of the making of quarter monthly payments to
the | ||||||
18 | Department pursuant to this paragraph shall continue until such
| ||||||
19 | taxpayer's average monthly prepaid tax collections during the | ||||||
20 | preceding 2
complete calendar quarters is $25,000 or less. If | ||||||
21 | any such quarter monthly
payment is not paid at the time or in | ||||||
22 | the amount required, the taxpayer
shall be liable for penalties | ||||||
23 | and interest on such difference, except
insofar as the taxpayer | ||||||
24 | has previously made payments for that month in
excess of the | ||||||
25 | minimum payments previously due. | ||||||
26 | The provisions of this paragraph apply on and after October |
| |||||||
| |||||||
1 | 1, 2001.
Without regard to whether a taxpayer is required to | ||||||
2 | make quarter monthly
payments as specified above, any taxpayer | ||||||
3 | who is required by Section 2d of this
Act to collect and remit | ||||||
4 | prepaid taxes and has collected prepaid taxes that
average in | ||||||
5 | excess of $20,000 per month during the preceding 4 complete | ||||||
6 | calendar
quarters shall file a return with the Department as | ||||||
7 | required by Section 2f
and shall make payments to the | ||||||
8 | Department on or before the 7th, 15th, 22nd and
last day of the | ||||||
9 | month during which the liability is incurred. Each payment
| ||||||
10 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
11 | liability for the
month or 25% of the taxpayer's liability for | ||||||
12 | the same calendar month of the
preceding year. The amount of | ||||||
13 | the quarter monthly payments shall be credited
against the | ||||||
14 | final tax liability of the taxpayer's return for that month | ||||||
15 | filed
under this Section or Section 2f, as the case may be. | ||||||
16 | Once applicable, the
requirement of the making of quarter | ||||||
17 | monthly payments to the Department
pursuant to this paragraph | ||||||
18 | shall continue until the taxpayer's average monthly
prepaid tax | ||||||
19 | collections during the preceding 4 complete calendar quarters
| ||||||
20 | (excluding the month of highest liability and the month of | ||||||
21 | lowest liability) is
less than $19,000 or until such taxpayer's | ||||||
22 | average monthly liability to the
Department as computed for | ||||||
23 | each calendar quarter of the 4 preceding complete
calendar | ||||||
24 | quarters is less than $20,000. If any such quarter monthly | ||||||
25 | payment is
not paid at the time or in the amount required, the | ||||||
26 | taxpayer shall be liable
for penalties and interest on such |
| |||||||
| |||||||
1 | difference, except insofar as the taxpayer
has previously made | ||||||
2 | payments for that month in excess of the minimum payments
| ||||||
3 | previously due. | ||||||
4 | If any payment provided for in this Section exceeds
the | ||||||
5 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
6 | Service
Occupation Tax Act and the Service Use Tax Act, as | ||||||
7 | shown on an original
monthly return, the Department shall, if | ||||||
8 | requested by the taxpayer, issue to
the taxpayer a credit | ||||||
9 | memorandum no later than 30 days after the date of
payment. The | ||||||
10 | credit evidenced by such credit memorandum may
be assigned by | ||||||
11 | the taxpayer to a similar taxpayer under this Act, the
Use Tax | ||||||
12 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
13 | in
accordance with reasonable rules and regulations to be | ||||||
14 | prescribed by the
Department. If no such request is made, the | ||||||
15 | taxpayer may credit such excess
payment against tax liability | ||||||
16 | subsequently to be remitted to the Department
under this Act, | ||||||
17 | the Use Tax Act, the Service Occupation Tax Act or the
Service | ||||||
18 | Use Tax Act, in accordance with reasonable rules and | ||||||
19 | regulations
prescribed by the Department. If the Department | ||||||
20 | subsequently determined
that all or any part of the credit | ||||||
21 | taken was not actually due to the
taxpayer, the taxpayer's 2.1% | ||||||
22 | and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% | ||||||
23 | of the difference between the credit taken and that
actually | ||||||
24 | due multiplied by the vendor discount amount , and that taxpayer | ||||||
25 | shall be liable for penalties and interest
on such difference. | ||||||
26 | If a retailer of motor fuel is entitled to a credit under |
| |||||||
| |||||||
1 | Section 2d of
this Act which exceeds the taxpayer's liability | ||||||
2 | to the Department under
this Act for the month which the | ||||||
3 | taxpayer is filing a return, the
Department shall issue the | ||||||
4 | taxpayer a credit memorandum for the excess. | ||||||
5 | Beginning January 1, 1990, each month the Department shall | ||||||
6 | pay into
the Local Government Tax Fund, a special fund in the | ||||||
7 | State treasury which
is hereby created, the net revenue | ||||||
8 | realized for the preceding month from
the 1% tax on sales of | ||||||
9 | food for human consumption which is to be consumed
off the | ||||||
10 | premises where it is sold (other than alcoholic beverages, soft
| ||||||
11 | drinks and food which has been prepared for immediate | ||||||
12 | consumption) and
prescription and nonprescription medicines, | ||||||
13 | drugs, medical appliances, products classified as Class III | ||||||
14 | medical devices by the United States Food and Drug | ||||||
15 | Administration that are used for cancer treatment pursuant to a | ||||||
16 | prescription, as well as any accessories and components related | ||||||
17 | to those devices, and
insulin, urine testing materials, | ||||||
18 | syringes and needles used by diabetics. | ||||||
19 | Beginning January 1, 1990, each month the Department shall | ||||||
20 | pay into
the County and Mass Transit District Fund, a special | ||||||
21 | fund in the State
treasury which is hereby created, 4% of the | ||||||
22 | net revenue realized
for the preceding month from the 6.25% | ||||||
23 | general rate. | ||||||
24 | Beginning August 1, 2000, each
month the Department shall | ||||||
25 | pay into the
County and Mass Transit District Fund 20% of the | ||||||
26 | net revenue realized for the
preceding month from the 1.25% |
| |||||||
| |||||||
1 | rate on the selling price of motor fuel and
gasohol. Beginning | ||||||
2 | September 1, 2010, each month the Department shall pay into the | ||||||
3 | County and Mass Transit District Fund 20% of the net revenue | ||||||
4 | realized for the preceding month from the 1.25% rate on the | ||||||
5 | selling price of sales tax holiday items. | ||||||
6 | Beginning January 1, 1990, each month the Department shall | ||||||
7 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
8 | realized for the
preceding month from the 6.25% general rate on | ||||||
9 | the selling price of
tangible personal property. | ||||||
10 | Beginning August 1, 2000, each
month the Department shall | ||||||
11 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
12 | realized for the preceding
month from the 1.25% rate on the | ||||||
13 | selling price of motor fuel and gasohol. Beginning September 1, | ||||||
14 | 2010, each month the Department shall pay into the Local | ||||||
15 | Government Tax Fund 80% of the net revenue realized for the | ||||||
16 | preceding month from the 1.25% rate on the selling price of | ||||||
17 | sales tax holiday items. | ||||||
18 | Beginning October 1, 2009, each month the Department shall | ||||||
19 | pay into the Capital Projects Fund an amount that is equal to | ||||||
20 | an amount estimated by the Department to represent 80% of the | ||||||
21 | net revenue realized for the preceding month from the sale of | ||||||
22 | candy, grooming and hygiene products, and soft drinks that had | ||||||
23 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
24 | are now taxed at 6.25%. | ||||||
25 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
26 | into the Clean Air Act Permit Fund 80% of the net revenue |
| |||||||
| |||||||
1 | realized for the
preceding month from the 6.25% general rate on | ||||||
2 | the selling price of sorbents used in Illinois in the process | ||||||
3 | of sorbent injection as used to comply with the Environmental | ||||||
4 | Protection Act or the federal Clean Air Act, but the total | ||||||
5 | payment into the Clean Air Act Permit Fund under this Act and | ||||||
6 | the Use Tax Act shall not exceed $2,000,000 in any fiscal year. | ||||||
7 | Beginning July 1, 2013, each month the Department shall pay | ||||||
8 | into the Underground Storage Tank Fund from the proceeds | ||||||
9 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
10 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
11 | average monthly deficit in the Underground Storage Tank Fund | ||||||
12 | during the prior year, as certified annually by the Illinois | ||||||
13 | Environmental Protection Agency, but the total payment into the | ||||||
14 | Underground Storage Tank Fund under this Act, the Use Tax Act, | ||||||
15 | the Service Use Tax Act, and the Service Occupation Tax Act | ||||||
16 | shall not exceed $18,000,000 in any State fiscal year. As used | ||||||
17 | in this paragraph, the "average monthly deficit" shall be equal | ||||||
18 | to the difference between the average monthly claims for | ||||||
19 | payment by the fund and the average monthly revenues deposited | ||||||
20 | into the fund, excluding payments made pursuant to this | ||||||
21 | paragraph. | ||||||
22 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
23 | received by the Department under the Use Tax Act, the Service | ||||||
24 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
25 | month the Department shall deposit $500,000 into the State | ||||||
26 | Crime Laboratory Fund. |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | Of the remainder of the moneys received by the Department | |||||||||||||||||||||||||
2 | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | |||||||||||||||||||||||||
3 | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | |||||||||||||||||||||||||
4 | and after July 1, 1989,
3.8% thereof shall be paid into the | |||||||||||||||||||||||||
5 | Build Illinois Fund; provided, however,
that if in any fiscal | |||||||||||||||||||||||||
6 | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | |||||||||||||||||||||||||
7 | may be, of the moneys received by the Department and required | |||||||||||||||||||||||||
8 | to
be paid into the Build Illinois Fund pursuant to this Act, | |||||||||||||||||||||||||
9 | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | |||||||||||||||||||||||||
10 | Act, and Section 9 of the
Service Occupation Tax Act, such Acts | |||||||||||||||||||||||||
11 | being hereinafter called the "Tax
Acts" and such aggregate of | |||||||||||||||||||||||||
12 | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | |||||||||||||||||||||||||
13 | called the "Tax Act Amount", and (2) the amount
transferred to | |||||||||||||||||||||||||
14 | the Build Illinois Fund from the State and Local Sales Tax
| |||||||||||||||||||||||||
15 | Reform Fund shall be less than the Annual Specified Amount (as | |||||||||||||||||||||||||
16 | hereinafter
defined), an amount equal to the difference shall | |||||||||||||||||||||||||
17 | be immediately paid into
the Build Illinois Fund from other | |||||||||||||||||||||||||
18 | moneys received by the Department
pursuant to the Tax Acts; the | |||||||||||||||||||||||||
19 | "Annual Specified Amount" means the amounts
specified below for | |||||||||||||||||||||||||
20 | fiscal years 1986 through 1993: | |||||||||||||||||||||||||
|
| ||||||||||||||
| ||||||||||||||
| ||||||||||||||
4 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||
5 | defined in
Section 13 of the Build Illinois Bond Act) or the | |||||||||||||
6 | Tax Act Amount, whichever
is greater, for fiscal year 1994 and | |||||||||||||
7 | each fiscal year thereafter; and
further provided, that if on | |||||||||||||
8 | the last business day of any month the sum of
(1) the Tax Act | |||||||||||||
9 | Amount required to be deposited into the Build Illinois
Bond | |||||||||||||
10 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||
11 | the
amount transferred to the Build Illinois Fund from the | |||||||||||||
12 | State and Local
Sales Tax Reform Fund shall have been less than | |||||||||||||
13 | 1/12 of the Annual
Specified Amount, an amount equal to the | |||||||||||||
14 | difference shall be immediately
paid into the Build Illinois | |||||||||||||
15 | Fund from other moneys received by the
Department pursuant to | |||||||||||||
16 | the Tax Acts; and, further provided, that in no
event shall the | |||||||||||||
17 | payments required under the preceding proviso result in
| |||||||||||||
18 | aggregate payments into the Build Illinois Fund pursuant to | |||||||||||||
19 | this clause (b)
for any fiscal year in excess of the greater of | |||||||||||||
20 | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for | |||||||||||||
21 | such fiscal year. The amounts payable
into the Build Illinois | |||||||||||||
22 | Fund under clause (b) of the first sentence in this
paragraph | |||||||||||||
23 | shall be payable only until such time as the aggregate amount | |||||||||||||
24 | on
deposit under each trust indenture securing Bonds issued and | |||||||||||||
25 | outstanding
pursuant to the Build Illinois Bond Act is | |||||||||||||
26 | sufficient, taking into account
any future investment income, |
| |||||||
| |||||||
1 | to fully provide, in accordance with such
indenture, for the | ||||||
2 | defeasance of or the payment of the principal of,
premium, if | ||||||
3 | any, and interest on the Bonds secured by such indenture and on
| ||||||
4 | any Bonds expected to be issued thereafter and all fees and | ||||||
5 | costs payable
with respect thereto, all as certified by the | ||||||
6 | Director of the Bureau of the
Budget (now Governor's Office of | ||||||
7 | Management and Budget). If on the last
business day of any | ||||||
8 | month in which Bonds are
outstanding pursuant to the Build | ||||||
9 | Illinois Bond Act, the aggregate of
moneys deposited in the | ||||||
10 | Build Illinois Bond Account in the Build Illinois
Fund in such | ||||||
11 | month shall be less than the amount required to be transferred
| ||||||
12 | in such month from the Build Illinois Bond Account to the Build | ||||||
13 | Illinois
Bond Retirement and Interest Fund pursuant to Section | ||||||
14 | 13 of the Build
Illinois Bond Act, an amount equal to such | ||||||
15 | deficiency shall be immediately
paid from other moneys received | ||||||
16 | by the Department pursuant to the Tax Acts
to the Build | ||||||
17 | Illinois Fund; provided, however, that any amounts paid to the
| ||||||
18 | Build Illinois Fund in any fiscal year pursuant to this | ||||||
19 | sentence shall be
deemed to constitute payments pursuant to | ||||||
20 | clause (b) of the first sentence
of this paragraph and shall | ||||||
21 | reduce the amount otherwise payable for such
fiscal year | ||||||
22 | pursuant to that clause (b). The moneys received by the
| ||||||
23 | Department pursuant to this Act and required to be deposited | ||||||
24 | into the Build
Illinois Fund are subject to the pledge, claim | ||||||
25 | and charge set forth in
Section 12 of the Build Illinois Bond | ||||||
26 | Act. |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | as provided in
the preceding paragraph or in any amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | in
excess of sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | 9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||
12 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||
13 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
15 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||
16 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||
17 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||
18 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||
19 | required under this Section for previous
months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||
20 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||
22 | not
in excess of the amount specified above as "Total Deposit", | |||||||||||||||||||||||||||||||||||||||||||||||||||
23 | has been deposited. | |||||||||||||||||||||||||||||||||||||||||||||||||||
24 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||
25 | and the
McCormick Place Expansion Project Fund pursuant to the | |||||||||||||||||||||||||||||||||||||||||||||||||||
26 | preceding paragraphs
or in any amendments
thereto hereafter |
| |||||||
| |||||||
1 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
2 | 2013, the Department shall each
month pay into the Illinois Tax | ||||||
3 | Increment Fund 0.27% of 80% of the net revenue
realized for the | ||||||
4 | preceding month from the 6.25% general rate on the selling
| ||||||
5 | price of tangible personal property. | ||||||
6 | Subject to payment of amounts into the Build Illinois Fund | ||||||
7 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
8 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
9 | enacted, beginning with the receipt of the first
report of | ||||||
10 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
11 | period, the Department shall each month pay into the Energy | ||||||
12 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
13 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
14 | that was sold to an eligible business.
For purposes of this | ||||||
15 | paragraph, the term "eligible business" means a new
electric | ||||||
16 | generating facility certified pursuant to Section 605-332 of | ||||||
17 | the
Department of Commerce and Economic Opportunity
Law of the | ||||||
18 | Civil Administrative Code of Illinois. | ||||||
19 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
20 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
21 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
22 | the preceding paragraphs or in any amendments to this Section | ||||||
23 | hereafter enacted, beginning on the first day of the first | ||||||
24 | calendar month to occur on or after August 26, 2014 ( the | ||||||
25 | effective date of Public Act 98-1098) this amendatory Act of | ||||||
26 | the 98th General Assembly , each month, from the collections |
| |||||||
| |||||||
1 | made under Section 9 of the Use Tax Act, Section 9 of the | ||||||
2 | Service Use Tax Act, Section 9 of the Service Occupation Tax | ||||||
3 | Act, and Section 3 of the Retailers' Occupation Tax Act, the | ||||||
4 | Department shall pay into the Tax Compliance and Administration | ||||||
5 | Fund, to be used, subject to appropriation, to fund additional | ||||||
6 | auditors and compliance personnel at the Department of Revenue, | ||||||
7 | an amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
8 | collected during the preceding fiscal year by the Audit Bureau | ||||||
9 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
10 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
11 | Tax Act, and associated local occupation and use taxes | ||||||
12 | administered by the Department. | ||||||
13 | Of the remainder of the moneys received by the Department | ||||||
14 | pursuant to
this Act, 75% thereof shall be paid into the State | ||||||
15 | Treasury and 25% shall
be reserved in a special account and | ||||||
16 | used only for the transfer to the
Common School Fund as part of | ||||||
17 | the monthly transfer from the General Revenue
Fund in | ||||||
18 | accordance with Section 8a of the State Finance Act. | ||||||
19 | The Department may, upon separate written notice to a | ||||||
20 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
21 | Department on a form
prescribed by the Department within not | ||||||
22 | less than 60 days after receipt
of the notice an annual | ||||||
23 | information return for the tax year specified in
the notice. | ||||||
24 | Such annual return to the Department shall include a
statement | ||||||
25 | of gross receipts as shown by the retailer's last Federal | ||||||
26 | income
tax return. If the total receipts of the business as |
| |||||||
| |||||||
1 | reported in the
Federal income tax return do not agree with the | ||||||
2 | gross receipts reported to
the Department of Revenue for the | ||||||
3 | same period, the retailer shall attach
to his annual return a | ||||||
4 | schedule showing a reconciliation of the 2
amounts and the | ||||||
5 | reasons for the difference. The retailer's annual
return to the | ||||||
6 | Department shall also disclose the cost of goods sold by
the | ||||||
7 | retailer during the year covered by such return, opening and | ||||||
8 | closing
inventories of such goods for such year, costs of goods | ||||||
9 | used from stock
or taken from stock and given away by the | ||||||
10 | retailer during such year,
payroll information of the | ||||||
11 | retailer's business during such year and any
additional | ||||||
12 | reasonable information which the Department deems would be
| ||||||
13 | helpful in determining the accuracy of the monthly, quarterly | ||||||
14 | or annual
returns filed by such retailer as provided for in | ||||||
15 | this Section. | ||||||
16 | If the annual information return required by this Section | ||||||
17 | is not
filed when and as required, the taxpayer shall be liable | ||||||
18 | as follows: | ||||||
19 | (i) Until January 1, 1994, the taxpayer shall be liable
| ||||||
20 | for a penalty equal to 1/6 of 1% of the tax due from such | ||||||
21 | taxpayer under
this Act during the period to be covered by | ||||||
22 | the annual return for each
month or fraction of a month | ||||||
23 | until such return is filed as required, the
penalty to be | ||||||
24 | assessed and collected in the same manner as any other
| ||||||
25 | penalty provided for in this Act. | ||||||
26 | (ii) On and after January 1, 1994, the taxpayer shall |
| |||||||
| |||||||
1 | be
liable for a penalty as described in Section 3-4 of the | ||||||
2 | Uniform Penalty and
Interest Act. | ||||||
3 | The chief executive officer, proprietor, owner or highest | ||||||
4 | ranking
manager shall sign the annual return to certify the | ||||||
5 | accuracy of the
information contained therein. Any person who | ||||||
6 | willfully signs the
annual return containing false or | ||||||
7 | inaccurate information shall be guilty
of perjury and punished | ||||||
8 | accordingly. The annual return form prescribed
by the | ||||||
9 | Department shall include a warning that the person signing the
| ||||||
10 | return may be liable for perjury. | ||||||
11 | The provisions of this Section concerning the filing of an | ||||||
12 | annual
information return do not apply to a retailer who is not | ||||||
13 | required to
file an income tax return with the United States | ||||||
14 | Government. | ||||||
15 | As soon as possible after the first day of each month, upon | ||||||
16 | certification
of the Department of Revenue, the Comptroller | ||||||
17 | shall order transferred and
the Treasurer shall transfer from | ||||||
18 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
19 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
20 | for the second preceding
month.
Beginning April 1, 2000, this | ||||||
21 | transfer is no longer required
and shall not be made. | ||||||
22 | Net revenue realized for a month shall be the revenue | ||||||
23 | collected by the
State pursuant to this Act, less the amount | ||||||
24 | paid out during that month as
refunds to taxpayers for | ||||||
25 | overpayment of liability. | ||||||
26 | For greater simplicity of administration, manufacturers, |
| |||||||
| |||||||
1 | importers
and wholesalers whose products are sold at retail in | ||||||
2 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
3 | assume the responsibility
for accounting and paying to the | ||||||
4 | Department all tax accruing under this
Act with respect to such | ||||||
5 | sales, if the retailers who are affected do not
make written | ||||||
6 | objection to the Department to this arrangement. | ||||||
7 | Any person who promotes, organizes, provides retail | ||||||
8 | selling space for
concessionaires or other types of sellers at | ||||||
9 | the Illinois State Fair, DuQuoin
State Fair, county fairs, | ||||||
10 | local fairs, art shows, flea markets and similar
exhibitions or | ||||||
11 | events, including any transient merchant as defined by Section | ||||||
12 | 2
of the Transient Merchant Act of 1987, is required to file a | ||||||
13 | report with the
Department providing the name of the merchant's | ||||||
14 | business, the name of the
person or persons engaged in | ||||||
15 | merchant's business, the permanent address and
Illinois | ||||||
16 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
17 | the
dates and location of the event and other reasonable | ||||||
18 | information that the
Department may require. The report must be | ||||||
19 | filed not later than the 20th day
of the month next following | ||||||
20 | the month during which the event with retail sales
was held. | ||||||
21 | Any person who fails to file a report required by this Section
| ||||||
22 | commits a business offense and is subject to a fine not to | ||||||
23 | exceed $250. | ||||||
24 | Any person engaged in the business of selling tangible | ||||||
25 | personal
property at retail as a concessionaire or other type | ||||||
26 | of seller at the
Illinois State Fair, county fairs, art shows, |
| |||||||
| |||||||
1 | flea markets and similar
exhibitions or events, or any | ||||||
2 | transient merchants, as defined by Section 2
of the Transient | ||||||
3 | Merchant Act of 1987, may be required to make a daily report
of | ||||||
4 | the amount of such sales to the Department and to make a daily | ||||||
5 | payment of
the full amount of tax due. The Department shall | ||||||
6 | impose this
requirement when it finds that there is a | ||||||
7 | significant risk of loss of
revenue to the State at such an | ||||||
8 | exhibition or event. Such a finding
shall be based on evidence | ||||||
9 | that a substantial number of concessionaires
or other sellers | ||||||
10 | who are not residents of Illinois will be engaging in
the | ||||||
11 | business of selling tangible personal property at retail at the
| ||||||
12 | exhibition or event, or other evidence of a significant risk of | ||||||
13 | loss of revenue
to the State. The Department shall notify | ||||||
14 | concessionaires and other sellers
affected by the imposition of | ||||||
15 | this requirement. In the absence of
notification by the | ||||||
16 | Department, the concessionaires and other sellers
shall file | ||||||
17 | their returns as otherwise required in this Section. | ||||||
18 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
19 | 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff. | ||||||
20 | 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933, | ||||||
21 | eff. 1-27-17; revised 2-3-17.)
| ||||||
22 | Section 30. The Cigarette Tax Act is amended by changing | ||||||
23 | Section 2 as follows:
| ||||||
24 | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
|
| |||||||
| |||||||
1 | Sec. 2. Tax imposed; rate; collection, payment, and | ||||||
2 | distribution;
discount. | ||||||
3 | (a) A tax is imposed upon any person engaged in business as | ||||||
4 | a
retailer of cigarettes in this State at the rate of 5 1/2 | ||||||
5 | mills per
cigarette sold, or otherwise disposed of in the | ||||||
6 | course of such business in
this State. In addition to any other | ||||||
7 | tax imposed by this Act, a tax is
imposed upon any person | ||||||
8 | engaged in business as a retailer of cigarettes in
this State | ||||||
9 | at a rate of 1/2 mill per cigarette sold or otherwise disposed
| ||||||
10 | of in the course of such business in this State on and after | ||||||
11 | January 1,
1947, and shall be paid into the Metropolitan Fair | ||||||
12 | and Exposition Authority
Reconstruction Fund or as otherwise | ||||||
13 | provided in Section 29. On and after December 1, 1985, in | ||||||
14 | addition to any
other tax imposed by this Act, a tax is imposed | ||||||
15 | upon any person engaged in
business as a retailer of cigarettes | ||||||
16 | in this State at a rate of 4 mills per
cigarette sold or | ||||||
17 | otherwise disposed of in the course of such business in
this | ||||||
18 | State. Of the additional tax imposed by this amendatory Act of | ||||||
19 | 1985,
$9,000,000 of the moneys received by the Department of | ||||||
20 | Revenue pursuant to
this Act shall be paid each month into the | ||||||
21 | Common School Fund. On and after
the effective date of this | ||||||
22 | amendatory Act of 1989, in addition to any other tax
imposed by | ||||||
23 | this Act, a tax is imposed upon any person engaged in business | ||||||
24 | as a
retailer of cigarettes at the rate of 5 mills per | ||||||
25 | cigarette sold or
otherwise disposed of in the course of such | ||||||
26 | business in this State.
On and after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of 1993, in addition
to any other tax imposed by | ||||||
2 | this Act, a tax is imposed upon any person engaged
in business | ||||||
3 | as a retailer of cigarettes at the rate of 7 mills per | ||||||
4 | cigarette
sold or otherwise disposed of in the course of such | ||||||
5 | business in this State.
On and after December 15, 1997, in | ||||||
6 | addition
to any other tax imposed by this Act, a tax is imposed | ||||||
7 | upon any person engaged
in business as a retailer of cigarettes | ||||||
8 | at the rate of 7 mills per cigarette
sold or otherwise disposed | ||||||
9 | of in the course of such business of this State.
All of the | ||||||
10 | moneys received by the Department of Revenue pursuant to this | ||||||
11 | Act
and the Cigarette Use Tax Act from the additional taxes | ||||||
12 | imposed by this
amendatory Act of 1997, shall be paid each | ||||||
13 | month into the Common School Fund.
On and after July 1, 2002, | ||||||
14 | in addition to any other tax imposed by this Act,
a tax is | ||||||
15 | imposed upon any person engaged in business as a retailer of
| ||||||
16 | cigarettes at the rate of 20.0 mills per cigarette sold or | ||||||
17 | otherwise disposed
of
in the course of such business in this | ||||||
18 | State.
Beginning on June 24, 2012, in addition to any other tax | ||||||
19 | imposed by this Act, a tax is imposed upon any person engaged | ||||||
20 | in business as a retailer of cigarettes at the rate of 50 mills | ||||||
21 | per cigarette sold or otherwise disposed of in the course of | ||||||
22 | such business in this State. All moneys received by the | ||||||
23 | Department of Revenue under this Act and the Cigarette Use Tax | ||||||
24 | Act from the additional taxes imposed by this amendatory Act of | ||||||
25 | the 97th General Assembly shall be paid each month into the | ||||||
26 | Healthcare Provider Relief Fund. The payment of such taxes |
| |||||||
| |||||||
1 | shall be evidenced by a stamp affixed to
each original package | ||||||
2 | of cigarettes, or an authorized substitute for such stamp
| ||||||
3 | imprinted on each original package of such cigarettes | ||||||
4 | underneath the sealed
transparent outside wrapper of such | ||||||
5 | original package, as hereinafter provided.
However, such taxes | ||||||
6 | are not imposed upon any activity in such business in
| ||||||
7 | interstate commerce or otherwise, which activity may not under
| ||||||
8 | the Constitution and statutes of the United States be made the | ||||||
9 | subject of
taxation by this State.
| ||||||
10 | Beginning on the effective date of this amendatory Act of | ||||||
11 | the 92nd General
Assembly and through June 30, 2006,
all of the | ||||||
12 | moneys received by the Department of Revenue pursuant to this | ||||||
13 | Act
and the Cigarette Use Tax Act, other than the moneys that | ||||||
14 | are dedicated to the Common
School Fund, shall be distributed | ||||||
15 | each month as follows: first, there shall be
paid into the | ||||||
16 | General Revenue Fund an amount which, when added to the amount
| ||||||
17 | paid into the Common School Fund for that month, equals | ||||||
18 | $33,300,000, except that in the month of August of 2004, this | ||||||
19 | amount shall equal $83,300,000; then, from
the moneys | ||||||
20 | remaining, if any amounts required to be paid into the General
| ||||||
21 | Revenue Fund in previous months remain unpaid, those amounts | ||||||
22 | shall be paid into
the General Revenue Fund;
then, beginning on | ||||||
23 | April 1, 2003, from the moneys remaining, $5,000,000 per
month | ||||||
24 | shall be paid into the School Infrastructure Fund; then, if any | ||||||
25 | amounts
required to be paid into the School Infrastructure Fund | ||||||
26 | in previous months
remain unpaid, those amounts shall be paid |
| |||||||
| |||||||
1 | into the School Infrastructure
Fund;
then the moneys remaining, | ||||||
2 | if any, shall be paid into the Long-Term Care
Provider Fund.
To | ||||||
3 | the extent that more than $25,000,000 has been paid into the | ||||||
4 | General
Revenue Fund and Common School Fund per month for the | ||||||
5 | period of July 1, 1993
through the effective date of this | ||||||
6 | amendatory Act of 1994 from combined
receipts
of the Cigarette | ||||||
7 | Tax Act and the Cigarette Use Tax Act, notwithstanding the
| ||||||
8 | distribution provided in this Section, the Department of | ||||||
9 | Revenue is hereby
directed to adjust the distribution provided | ||||||
10 | in this Section to increase the
next monthly payments to the | ||||||
11 | Long Term Care Provider Fund by the amount paid to
the General | ||||||
12 | Revenue Fund and Common School Fund in excess of $25,000,000 | ||||||
13 | per
month and to decrease the next monthly payments to the | ||||||
14 | General Revenue Fund and
Common School Fund by that same excess | ||||||
15 | amount.
| ||||||
16 | Beginning on July 1, 2006, all of the moneys received by | ||||||
17 | the Department of Revenue pursuant to this Act and the | ||||||
18 | Cigarette Use Tax Act, other than the moneys that are dedicated | ||||||
19 | to the Common School Fund and, beginning on the effective date | ||||||
20 | of this amendatory Act of the 97th General Assembly, other than | ||||||
21 | the moneys from the additional taxes imposed by this amendatory | ||||||
22 | Act of the 97th General Assembly that must be paid each month | ||||||
23 | into the Healthcare Provider Relief Fund, shall be distributed | ||||||
24 | each month as follows: first, there shall be paid into the | ||||||
25 | General Revenue Fund an amount that, when added to the amount | ||||||
26 | paid into the Common School Fund for that month, equals |
| |||||||
| |||||||
1 | $29,200,000; then, from the moneys remaining, if any amounts | ||||||
2 | required to be paid into the General Revenue Fund in previous | ||||||
3 | months remain unpaid, those amounts shall be paid into the | ||||||
4 | General Revenue Fund; then from the moneys remaining, | ||||||
5 | $5,000,000 per month shall be paid into the School | ||||||
6 | Infrastructure Fund; then, if any amounts required to be paid | ||||||
7 | into the School Infrastructure Fund in previous months remain | ||||||
8 | unpaid, those amounts shall be paid into the School | ||||||
9 | Infrastructure Fund; then the moneys remaining, if any, shall | ||||||
10 | be paid into the Long-Term Care Provider Fund.
| ||||||
11 | Moneys collected from the tax imposed on little cigars | ||||||
12 | under Section 10-10 of the Tobacco Products Tax Act of 1995 | ||||||
13 | shall be included with the moneys collected under the Cigarette | ||||||
14 | Tax Act and the Cigarette Use Tax Act when making distributions | ||||||
15 | to the Common School Fund, the Healthcare Provider Relief Fund, | ||||||
16 | the General Revenue Fund, the School Infrastructure Fund, and | ||||||
17 | the Long-Term Care Provider Fund under this Section. | ||||||
18 | When any tax imposed herein terminates or has terminated, | ||||||
19 | distributors
who have bought stamps while such tax was in | ||||||
20 | effect and who therefore paid
such tax, but who can show, to | ||||||
21 | the Department's satisfaction, that they
sold the cigarettes to | ||||||
22 | which they affixed such stamps after such tax had
terminated | ||||||
23 | and did not recover the tax or its equivalent from purchasers,
| ||||||
24 | shall be allowed by the Department to take credit for such | ||||||
25 | absorbed tax
against subsequent tax stamp purchases from the | ||||||
26 | Department by such
distributor.
|
| |||||||
| |||||||
1 | The impact of the tax levied by this Act is imposed upon | ||||||
2 | the retailer
and shall be prepaid or pre-collected by the | ||||||
3 | distributor for the purpose of
convenience and facility only, | ||||||
4 | and the amount of the tax shall be added to
the price of the | ||||||
5 | cigarettes sold by such distributor. Collection of the tax
| ||||||
6 | shall be evidenced by a stamp or stamps affixed to each | ||||||
7 | original package of
cigarettes, as hereinafter provided.
| ||||||
8 | Each distributor shall collect the tax from the retailer at | ||||||
9 | or before
the time of the sale, shall affix the stamps as | ||||||
10 | hereinafter required, and
shall remit the tax collected from | ||||||
11 | retailers to the Department, as
hereinafter provided. Any | ||||||
12 | distributor who fails to properly collect and pay
the tax | ||||||
13 | imposed by this Act shall be liable for the tax. Any | ||||||
14 | distributor having
cigarettes to which stamps have been affixed | ||||||
15 | in his possession for sale on the
effective date of this | ||||||
16 | amendatory Act of 1989 shall not be required to pay the
| ||||||
17 | additional tax imposed by this amendatory Act of 1989 on such | ||||||
18 | stamped
cigarettes. Any distributor having cigarettes to which | ||||||
19 | stamps have been affixed
in his or her possession for sale at | ||||||
20 | 12:01 a.m. on the effective date of this
amendatory Act of | ||||||
21 | 1993, is required to pay the additional tax imposed by this
| ||||||
22 | amendatory Act of 1993 on such stamped cigarettes. This | ||||||
23 | payment, less the
discount provided in subsection (b), shall be | ||||||
24 | due when the distributor first
makes a purchase of cigarette | ||||||
25 | tax stamps after the effective date of this
amendatory Act of | ||||||
26 | 1993, or on the first due date of a return under this Act
after |
| |||||||
| |||||||
1 | the effective date of this amendatory Act of 1993, whichever | ||||||
2 | occurs
first. Any distributor having cigarettes to which stamps | ||||||
3 | have been affixed
in his possession for sale on December 15, | ||||||
4 | 1997
shall not be required to pay the additional tax imposed by | ||||||
5 | this amendatory Act
of 1997 on such stamped cigarettes.
| ||||||
6 | Any distributor having cigarettes to which stamps have been | ||||||
7 | affixed in his
or her
possession for sale on July 1, 2002 shall | ||||||
8 | not be required to pay the additional
tax imposed by this | ||||||
9 | amendatory Act of the 92nd General Assembly on those
stamped
| ||||||
10 | cigarettes.
| ||||||
11 | Any retailer having cigarettes in his or her possession on | ||||||
12 | June 24, 2012 to which tax stamps have been affixed is not | ||||||
13 | required to pay the additional tax that begins on June 24, 2012 | ||||||
14 | imposed by this amendatory Act of the 97th General Assembly on | ||||||
15 | those stamped cigarettes. Any distributor having cigarettes in | ||||||
16 | his or her possession on June 24, 2012 to which tax stamps have | ||||||
17 | been affixed, and any distributor having stamps in his or her | ||||||
18 | possession on June 24, 2012 that have not been affixed to | ||||||
19 | packages of cigarettes before June 24, 2012, is required to pay | ||||||
20 | the additional tax that begins on June 24, 2012 imposed by this | ||||||
21 | amendatory Act of the 97th General Assembly to the extent the | ||||||
22 | calendar year 2012 average monthly volume of cigarette stamps | ||||||
23 | in the distributor's possession exceeds the average monthly | ||||||
24 | volume of cigarette stamps purchased by the distributor in | ||||||
25 | calendar year 2011. This payment, less the discount provided in | ||||||
26 | subsection (b), is due when the distributor first makes a |
| |||||||
| |||||||
1 | purchase of cigarette stamps on or after June 24, 2012 or on | ||||||
2 | the first due date of a return under this Act occurring on or | ||||||
3 | after June 24, 2012, whichever occurs first. Those distributors | ||||||
4 | may elect to pay the additional tax on packages of cigarettes | ||||||
5 | to which stamps have been affixed and on any stamps in the | ||||||
6 | distributor's possession that have not been affixed to packages | ||||||
7 | of cigarettes over a period not to exceed 12 months from the | ||||||
8 | due date of the additional tax by notifying the Department in | ||||||
9 | writing. The first payment for distributors making such | ||||||
10 | election is due when the distributor first makes a purchase of | ||||||
11 | cigarette tax stamps on or after June 24, 2012 or on the first | ||||||
12 | due date of a return under this Act occurring on or after June | ||||||
13 | 24, 2012, whichever occurs first. Distributors making such an | ||||||
14 | election are not entitled to take the discount provided in | ||||||
15 | subsection (b) on such payments. | ||||||
16 | Distributors making sales of cigarettes to secondary | ||||||
17 | distributors shall add the amount of the tax to the price of | ||||||
18 | the cigarettes sold by the distributors. Secondary | ||||||
19 | distributors making sales of cigarettes to retailers shall | ||||||
20 | include the amount of the tax in the price of the cigarettes | ||||||
21 | sold to retailers. The amount of tax shall not be less than the | ||||||
22 | amount of taxes imposed by the State and all local | ||||||
23 | jurisdictions. The amount of local taxes shall be calculated | ||||||
24 | based on the location of the retailer's place of business shown | ||||||
25 | on the retailer's certificate of registration or | ||||||
26 | sub-registration issued to the retailer pursuant to Section 2a |
| |||||||
| |||||||
1 | of the Retailers' Occupation Tax Act. The original packages of | ||||||
2 | cigarettes sold to the retailer shall bear all the required | ||||||
3 | stamps, or other indicia, for the taxes included in the price | ||||||
4 | of cigarettes. | ||||||
5 | The amount of the Cigarette Tax imposed by this Act shall | ||||||
6 | be separately
stated, apart from the price of the goods, by | ||||||
7 | distributors, manufacturer representatives, secondary | ||||||
8 | distributors, and
retailers, in all bills and sales invoices.
| ||||||
9 | (b) The distributor shall be required to collect the taxes | ||||||
10 | provided
under paragraph (a) hereof, and, to cover the costs of | ||||||
11 | such collection,
shall be allowed a discount during any year | ||||||
12 | commencing July 1st and ending
the following June 30th in | ||||||
13 | accordance with the schedule set out
hereinbelow, which | ||||||
14 | discount shall be allowed at the time of purchase of the
stamps | ||||||
15 | when purchase is required by this Act, or at the time when the | ||||||
16 | tax
is remitted to the Department without the purchase of | ||||||
17 | stamps from the
Department when that method of paying the tax | ||||||
18 | is required or authorized by
this Act. Prior to December 1, | ||||||
19 | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | ||||||
20 | and including the first $700,000 paid hereunder by
such | ||||||
21 | distributor to the Department during any such year; 1 1/3% of | ||||||
22 | the next
$700,000 of tax or any part thereof, paid hereunder by | ||||||
23 | such distributor to the
Department during any such year; 1% of | ||||||
24 | the next $700,000 of tax, or any part
thereof, paid hereunder | ||||||
25 | by such distributor to the Department during any such
year, and | ||||||
26 | 2/3 of 1% of the amount of any additional tax paid hereunder by |
| |||||||
| |||||||
1 | such
distributor to the Department during any such year shall | ||||||
2 | apply. On and after
December 1, 1985, a discount equal to 1.75% | ||||||
3 | of the amount of the tax payable
under this Act up to and | ||||||
4 | including the first $3,000,000 paid hereunder by such
| ||||||
5 | distributor to the Department during any such year and 1.5% of | ||||||
6 | the amount of
any additional tax paid hereunder by such | ||||||
7 | distributor to the Department during
any such year shall apply. | ||||||
8 | On and after December 1, 1985 and until January 1, 2018, the | ||||||
9 | discount amount shall be 1.75% of the amount of the tax payable
| ||||||
10 | under this Act up to and including the first $3,000,000 paid | ||||||
11 | hereunder by such
distributor to the Department during any such | ||||||
12 | year and 1.5% of the amount of
any additional tax paid | ||||||
13 | hereunder by such distributor to the Department during
any the | ||||||
14 | year. On and after January 1, 2018, the discount amount shall | ||||||
15 | be the sum of (i) 1.75% of the first $1,000 of the tax payable | ||||||
16 | under this Act during the calendar year and (ii) 1% of the | ||||||
17 | amount of the tax payable under this Act during the calendar | ||||||
18 | year that exceeds $1,000; however, on and after January 1, | ||||||
19 | 2018, in no event shall the discount allowed to any distributor | ||||||
20 | be less than $5 in any calendar year or more than $1,500 in any | ||||||
21 | calendar 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 | (c) The taxes herein imposed are in addition to all other |
| |||||||
| |||||||
1 | occupation or
privilege taxes imposed by the State of Illinois, | ||||||
2 | or by any political
subdivision thereof, or by any municipal | ||||||
3 | corporation.
| ||||||
4 | (Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12; | ||||||
5 | 98-273, eff. 8-9-13.)
| ||||||
6 | Section 35. The Cigarette Use Tax Act is amended by | ||||||
7 | changing Section 3 as follows:
| ||||||
8 | (35 ILCS 135/3) (from Ch. 120, par. 453.33)
| ||||||
9 | Sec. 3. Stamp payment. The tax hereby imposed shall be | ||||||
10 | collected by a
distributor
maintaining a place of business in | ||||||
11 | this State or a distributor authorized
by the Department | ||||||
12 | pursuant to Section 7 hereof to collect the tax, and the
amount | ||||||
13 | of the tax shall be added to the price of the cigarettes sold | ||||||
14 | by
such distributor. Collection of the tax shall be evidenced | ||||||
15 | by a stamp or
stamps affixed to each original package of | ||||||
16 | cigarettes or by an authorized
substitute for such stamp | ||||||
17 | imprinted on each original package of such
cigarettes | ||||||
18 | underneath the sealed transparent outside wrapper of such
| ||||||
19 | original package, except as hereinafter provided. Each | ||||||
20 | distributor who is
required or authorized to collect the tax | ||||||
21 | herein imposed, before delivering
or causing to be delivered | ||||||
22 | any original packages of cigarettes in this
State to any | ||||||
23 | purchaser, shall firmly affix a proper stamp or stamps to each
| ||||||
24 | such package, or (in the case of manufacturers of cigarettes in |
| |||||||
| |||||||
1 | original
packages which are contained inside a sealed | ||||||
2 | transparent wrapper) shall
imprint the required language on the | ||||||
3 | original package of cigarettes beneath
such outside wrapper as | ||||||
4 | hereinafter provided. Such stamp or stamps need not
be affixed | ||||||
5 | to the original package of any cigarettes with respect to which
| ||||||
6 | the distributor is required to affix a like stamp or stamps by | ||||||
7 | virtue of
the Cigarette Tax Act, however, and no tax imprint | ||||||
8 | need be placed
underneath the sealed transparent wrapper of an | ||||||
9 | original package of
cigarettes with respect to which the | ||||||
10 | distributor is required or authorized
to employ a like tax | ||||||
11 | imprint by virtue of the Cigarette Tax Act.
| ||||||
12 | No stamp or imprint may be affixed to, or made upon, any | ||||||
13 | package of
cigarettes unless that package complies with all | ||||||
14 | requirements of the federal
Cigarette Labeling and Advertising | ||||||
15 | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | ||||||
16 | warnings, or any other information upon a package of
cigarettes | ||||||
17 | that is sold within the United States. Under the authority of
| ||||||
18 | Section 6, the Department shall revoke the license of any | ||||||
19 | distributor that is
determined to have violated this paragraph.
| ||||||
20 | A person may not affix a stamp on a package of cigarettes, | ||||||
21 | cigarette papers,
wrappers, or tubes if that individual package | ||||||
22 | has been marked for export
outside the United States with a | ||||||
23 | label or notice in compliance with Section
290.185 of Title 27 | ||||||
24 | of the Code of Federal Regulations. It is not a defense to
a | ||||||
25 | proceeding for violation of this paragraph that the label or | ||||||
26 | notice has been
removed, mutilated, obliterated, or altered in |
| |||||||
| |||||||
1 | any manner.
| ||||||
2 | Only distributors licensed under this Act and | ||||||
3 | transporters, as defined in Section 9c of the Cigarette Tax | ||||||
4 | Act, may possess unstamped original packages of cigarettes. | ||||||
5 | Prior to shipment to an Illinois retailer or secondary | ||||||
6 | distributor, a stamp shall be applied to each original package | ||||||
7 | of cigarettes sold to the retailer or secondary distributor. A | ||||||
8 | distributor may apply a tax stamp only to an original package | ||||||
9 | of cigarettes purchased or obtained directly from an in-state | ||||||
10 | maker, manufacturer, or fabricator licensed as a distributor | ||||||
11 | under Section 4 of this Act or an out-of-state maker, | ||||||
12 | manufacturer, or fabricator holding a permit under Section 7 of | ||||||
13 | this Act. A licensed distributor may ship or otherwise cause to | ||||||
14 | be delivered unstamped original packages of cigarettes in, | ||||||
15 | into, or from this State. A licensed distributor may transport | ||||||
16 | unstamped original packages of cigarettes to a facility, | ||||||
17 | wherever located, owned or controlled by such distributor; | ||||||
18 | however, a distributor may not transport unstamped original | ||||||
19 | packages of cigarettes to a facility where retail sales of | ||||||
20 | cigarettes take place or to a facility where a secondary | ||||||
21 | distributor makes sales for resale. Any licensed distributor | ||||||
22 | that ships or otherwise causes to be delivered unstamped | ||||||
23 | original packages of cigarettes into, within, or from this | ||||||
24 | State shall ensure that the invoice or equivalent documentation | ||||||
25 | and the bill of lading or freight bill for the shipment | ||||||
26 | identifies the true name and address of the consignor or |
| |||||||
| |||||||
1 | seller, the true name and address of the consignee or | ||||||
2 | purchaser, and the quantity by brand style of the cigarettes so | ||||||
3 | transported, provided that this Section shall not be construed | ||||||
4 | as to impose any requirement or liability upon any common or | ||||||
5 | contract carrier. | ||||||
6 | Distributors making sales of cigarettes to secondary | ||||||
7 | distributors shall add the amount of the tax to the price of | ||||||
8 | the cigarettes sold by the distributors. Secondary | ||||||
9 | distributors making sales of cigarettes to retailers shall | ||||||
10 | include the amount of the tax in the price of the cigarettes | ||||||
11 | sold to retailers. The amount of tax shall not be less than the | ||||||
12 | amount of taxes imposed by the State and all local | ||||||
13 | jurisdictions. The amount of local taxes shall be calculated | ||||||
14 | based on the location of the retailer's place of business shown | ||||||
15 | on the retailer's certificate of registration or | ||||||
16 | sub-registration issued to the retailer pursuant to Section 2a | ||||||
17 | of the Retailers' Occupation Tax Act. The original packages of | ||||||
18 | cigarettes sold by the retailer shall bear all the required | ||||||
19 | stamps, or other indicia, for the taxes included in the price | ||||||
20 | of cigarettes. | ||||||
21 | Stamps, when required hereunder, shall be purchased from | ||||||
22 | the Department, or
any person authorized by the Department, by | ||||||
23 | distributors. On and after July
1, 2003, payment for such | ||||||
24 | stamps must be made by means of
electronic funds transfer. The | ||||||
25 | Department may
refuse to sell stamps to any person who does not | ||||||
26 | comply with the provisions
of this Act. Beginning on June 6, |
| |||||||
| |||||||
1 | 2002 and through June 30, 2002,
persons holding valid licenses | ||||||
2 | as distributors may purchase cigarette tax
stamps up to an | ||||||
3 | amount equal to 115% of the distributor's average monthly
| ||||||
4 | cigarette tax stamp purchases over the 12 calendar months prior | ||||||
5 | to June
6, 2002.
| ||||||
6 | Prior to December 1, 1985, the Department shall
allow a | ||||||
7 | distributor
21 days in which to make final
payment of the | ||||||
8 | amount to be paid for such stamps, by allowing the
distributor | ||||||
9 | to make payment for the stamps at the time of purchasing them
| ||||||
10 | with a draft which shall be in such form as the Department | ||||||
11 | prescribes, and
which shall be payable within 21 days | ||||||
12 | thereafter: Provided that such
distributor has filed with the | ||||||
13 | Department, and has received the
Department's approval of, a | ||||||
14 | bond, which is in addition to the bond required
under Section 4 | ||||||
15 | of this Act, payable to the Department in an amount equal
to | ||||||
16 | 80% of such distributor's average monthly tax liability to
the | ||||||
17 | Department under this Act during the preceding calendar year or
| ||||||
18 | $500,000, whichever is less. The bond shall be joint and
| ||||||
19 | several and shall be in the form of a surety company bond in | ||||||
20 | such form as
the Department prescribes, or it may be in the | ||||||
21 | form of a bank certificate
of deposit or bank letter of credit. | ||||||
22 | The bond shall be conditioned upon the
distributor's payment of | ||||||
23 | the amount of any 21-day draft which the
Department accepts | ||||||
24 | from that distributor for the delivery of stamps to that
| ||||||
25 | distributor under this Act. The distributor's failure to pay | ||||||
26 | any such
draft, when due, shall also make such distributor |
| |||||||
| |||||||
1 | automatically liable to
the Department for a penalty equal to | ||||||
2 | 25% of the amount of such draft.
| ||||||
3 | On and after December 1, 1985 and until July 1, 2003, the | ||||||
4 | Department
shall allow a distributor
30 days in which to make
| ||||||
5 | final payment of the amount to be paid for such stamps, by | ||||||
6 | allowing the
distributor to make payment for the stamps at the | ||||||
7 | time of purchasing them
with a draft which shall be in such | ||||||
8 | form as the Department prescribes, and
which shall be payable | ||||||
9 | within 30 days thereafter, and beginning on January 1,
2003 and | ||||||
10 | thereafter, the draft shall be payable by means of electronic | ||||||
11 | funds
transfer: Provided that such
distributor has filed with | ||||||
12 | the Department, and has received the
Department's approval of, | ||||||
13 | a bond, which is in addition to the bond required
under Section | ||||||
14 | 4 of this Act, payable to the Department in an amount equal
to | ||||||
15 | 150% of such distributor's average monthly tax liability to the
| ||||||
16 | Department under this Act during the preceding calendar year or | ||||||
17 | $750,000,
whichever is less, except that as to bonds filed on | ||||||
18 | or after January 1,
1987, such additional bond shall be in an | ||||||
19 | amount equal to 100% of such
distributor's average monthly tax | ||||||
20 | liability under this Act during the
preceding calendar year or | ||||||
21 | $750,000, whichever is less. The bond shall be
joint and | ||||||
22 | several and shall be in the form of a surety company bond in | ||||||
23 | such
form as the Department prescribes, or it may be in the | ||||||
24 | form of a bank
certificate of deposit or bank letter of credit.
| ||||||
25 | The bond shall be conditioned upon the distributor's payment of | ||||||
26 | the amount
of any 30-day draft which the Department accepts |
| |||||||
| |||||||
1 | from that distributor for
the delivery of stamps to that | ||||||
2 | distributor under this Act. The
distributor's failure to pay | ||||||
3 | any such draft, when due, shall also make such
distributor | ||||||
4 | automatically liable to the Department for a penalty equal to
| ||||||
5 | 25% of the amount of such draft.
| ||||||
6 | Every prior continuous compliance taxpayer shall be exempt | ||||||
7 | from all
requirements under this Section concerning the | ||||||
8 | furnishing of such bond, as
defined in this Section, as a | ||||||
9 | condition precedent to his being authorized
to engage in the | ||||||
10 | business licensed under this Act. This exemption shall
continue | ||||||
11 | for each such taxpayer until such time as he may be determined | ||||||
12 | by
the Department to be delinquent in the filing of any | ||||||
13 | returns, or is
determined by the Department (either through the | ||||||
14 | Department's issuance of a
final assessment which has become | ||||||
15 | final under the Act, or by the taxpayer's
filing of a return | ||||||
16 | which admits tax to be due that is not paid) to be
delinquent | ||||||
17 | or deficient in the paying of any tax under this Act, at which
| ||||||
18 | time that taxpayer shall become subject to the bond | ||||||
19 | requirements of this
Section and, as a condition of being | ||||||
20 | allowed to continue to engage in the
business licensed under | ||||||
21 | this Act, shall be required to furnish bond to the
Department | ||||||
22 | in such form as provided in this Section. Such taxpayer shall
| ||||||
23 | furnish such bond for a period of 2 years, after which, if the | ||||||
24 | taxpayer has
not been delinquent in the filing of any returns, | ||||||
25 | or delinquent or
deficient in the paying of any tax under this | ||||||
26 | Act, the Department may
reinstate such person as a prior |
| |||||||
| |||||||
1 | continuance compliance taxpayer. Any
taxpayer who fails to pay | ||||||
2 | an admitted or established liability under this
Act may also be | ||||||
3 | required to post bond or other acceptable security with the
| ||||||
4 | Department guaranteeing the payment of such admitted or | ||||||
5 | established liability.
| ||||||
6 | Except as otherwise provided in this Section, any person | ||||||
7 | aggrieved by any decision of the Department under this
Section | ||||||
8 | may, within the time allowed by law, protest and request a | ||||||
9 | hearing before the Department,
whereupon the Department shall | ||||||
10 | give notice and shall hold a hearing in
conformity with the | ||||||
11 | provisions of this Act and then issue its final
administrative | ||||||
12 | decision in the matter to such person. Effective July 1, 2013, | ||||||
13 | protests concerning matters that are subject to the | ||||||
14 | jurisdiction of the Illinois Independent Tax Tribunal shall be | ||||||
15 | filed in accordance with the Illinois Independent Tax Tribunal | ||||||
16 | Act of 2012, and hearings concerning those matters shall be | ||||||
17 | held before the Tribunal in accordance with that Act. With | ||||||
18 | respect to protests filed with the Department prior to July 1, | ||||||
19 | 2013 that would otherwise be subject to the jurisdiction of the | ||||||
20 | Illinois Independent Tax Tribunal, the person filing the | ||||||
21 | protest may elect to be subject to the provisions of the | ||||||
22 | Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||||||
23 | after July 1, 2013, but not later than 30 days after the date | ||||||
24 | on which the protest was filed. If made, the election shall be | ||||||
25 | irrevocable. In the absence of
such a protest filed within the | ||||||
26 | time allowed by law, the Department's
decision shall become |
| |||||||
| |||||||
1 | final without any further determination being made or
notice | ||||||
2 | given.
| ||||||
3 | The Department shall discharge any surety and shall release | ||||||
4 | and return
any bond or security deposited, assigned, pledged, | ||||||
5 | or otherwise provided to
it by a taxpayer under this Section | ||||||
6 | within 30 days after:
| ||||||
7 | (1) such Taxpayer becomes a prior continuous | ||||||
8 | compliance taxpayer; or
| ||||||
9 | (2) such taxpayer has ceased to collect receipts on | ||||||
10 | which he is
required to remit tax to the Department, has | ||||||
11 | filed a final tax return, and
has paid to the Department an | ||||||
12 | amount sufficient to discharge his remaining
tax liability | ||||||
13 | as determined by the Department under this Act. The
| ||||||
14 | Department shall make a final determination of the | ||||||
15 | taxpayer's outstanding
tax liability as expeditiously as | ||||||
16 | possible after his final tax return has
been filed. If the | ||||||
17 | Department cannot make such final determination within
45 | ||||||
18 | days after receiving the final tax return, within such | ||||||
19 | period it shall
so notify the taxpayer, stating its reasons | ||||||
20 | therefor.
| ||||||
21 | At the time of purchasing such stamps from the Department | ||||||
22 | when purchase
is required by this Act, or at the time when the | ||||||
23 | tax which he has collected
is remitted by a distributor to the | ||||||
24 | Department without the purchase of
stamps from the Department | ||||||
25 | when that method of remitting the tax that has
been collected | ||||||
26 | is required or authorized by this Act, the distributor shall
be |
| |||||||
| |||||||
1 | allowed a discount during any year commencing July 1 and ending | ||||||
2 | the
following June 30 in accordance with the schedule set out | ||||||
3 | hereinbelow, from
the amount to be paid by him to the | ||||||
4 | Department for such stamps, or to be
paid by him to the | ||||||
5 | Department on the basis of monthly remittances (as the
case may | ||||||
6 | be), to cover the cost, to such distributor, of collecting the | ||||||
7 | tax
herein imposed by affixing such stamps to the original | ||||||
8 | packages of
cigarettes sold by such distributor or by placing | ||||||
9 | tax imprints underneath
the sealed transparent wrapper of | ||||||
10 | original packages of cigarettes sold by
such distributor (as | ||||||
11 | the case may be) . : (1) Prior to December 1, 1985, a
discount | ||||||
12 | equal to 1-2/3% of the amount of the tax up to and including | ||||||
13 | the
first $700,000 paid hereunder by
such distributor to the | ||||||
14 | Department during any such year; 1-1/3% of the next
$700,000 of | ||||||
15 | tax or any part thereof, paid hereunder by such distributor to
| ||||||
16 | the Department during any such year; 1% of the next $700,000 of | ||||||
17 | tax, or any
part thereof, paid hereunder by such distributor to | ||||||
18 | the Department during
any such year; and 2/3 of 1% of the | ||||||
19 | amount of any additional tax paid
hereunder by such distributor | ||||||
20 | to the Department during any such year or
(2) On and after | ||||||
21 | December 1, 1985 and until January 1, 2018 , the a discount | ||||||
22 | shall be equal to 1.75% of the
amount of the tax payable under | ||||||
23 | this Act up to and including the first
$3,000,000 paid | ||||||
24 | hereunder by such distributor to the Department during any
such | ||||||
25 | year and 1.5% of the amount of any additional tax paid | ||||||
26 | hereunder by
such distributor to the Department during any such |
| |||||||
| |||||||
1 | year. On and after January 1, 2018, the discount shall be equal | ||||||
2 | to the sum of (i) 1.75% of the first $1,000 of the tax payable | ||||||
3 | under this Act during the calendar year and (ii) 1% of the | ||||||
4 | amount of the tax payable under this Act during the calendar | ||||||
5 | year that exceeds $1,000; however, on and after January 1, | ||||||
6 | 2018, in no event shall the discount allowed to any distributor | ||||||
7 | be less than $5 in any calendar year or more than $1,500 in any | ||||||
8 | calendar year.
| ||||||
9 | Two or more distributors that use a common means of | ||||||
10 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
11 | the same interests shall be
treated as a single distributor for | ||||||
12 | the purpose of computing the discount.
| ||||||
13 | Cigarette manufacturers who are distributors under Section | ||||||
14 | 7(a) of this Act, and who
place their cigarettes in original | ||||||
15 | packages which are contained inside a
sealed transparent | ||||||
16 | wrapper, shall be required to remit the tax which they
are | ||||||
17 | required to collect under this Act to the Department by | ||||||
18 | remitting the
amount thereof to the Department by the 5th day | ||||||
19 | of each month, covering
cigarettes shipped or otherwise | ||||||
20 | delivered to points in Illinois to
purchasers during the | ||||||
21 | preceding calendar month, but a distributor need not
remit to | ||||||
22 | the Department the tax so collected by him from purchasers | ||||||
23 | under
this Act to the extent to which such distributor is | ||||||
24 | required to remit the
tax imposed by the Cigarette Tax Act to | ||||||
25 | the Department with respect to the
same cigarettes. All taxes | ||||||
26 | upon cigarettes under this Act are a direct tax
upon the retail |
| |||||||
| |||||||
1 | consumer and shall conclusively be presumed to be
precollected | ||||||
2 | for the purpose of convenience and facility only.
Cigarette | ||||||
3 | manufacturers that are distributors licensed under Section | ||||||
4 | 7(a) of this Act and who place their cigarettes in original | ||||||
5 | packages which
are contained inside a sealed transparent | ||||||
6 | wrapper, before delivering such
cigarettes or causing such | ||||||
7 | cigarettes to be delivered in this State to
purchasers, shall | ||||||
8 | evidence their obligation to collect and remit the tax
due with | ||||||
9 | respect to such cigarettes by imprinting language to be | ||||||
10 | prescribed
by the Department on each original package of such | ||||||
11 | cigarettes underneath
the sealed transparent outside wrapper | ||||||
12 | of such original package, in such
place thereon and in such | ||||||
13 | manner as the Department may prescribe; provided
(as stated | ||||||
14 | hereinbefore) that this requirement does not apply when such
| ||||||
15 | distributor is required or authorized by the Cigarette Tax Act | ||||||
16 | to place the
tax imprint provided for in the last paragraph of | ||||||
17 | Section 3 of that Act
underneath the sealed transparent wrapper | ||||||
18 | of such original package of
cigarettes. Such imprinted language | ||||||
19 | shall acknowledge the manufacturer's
collection and payment of | ||||||
20 | or liability for the tax imposed by this Act with
respect to | ||||||
21 | such cigarettes.
| ||||||
22 | The Department shall adopt the design or designs of the tax | ||||||
23 | stamps and
shall procure the printing of such stamps in such | ||||||
24 | amounts and denominations
as it deems necessary to provide for | ||||||
25 | the affixation of the proper amount of
tax stamps to each | ||||||
26 | original package of cigarettes.
|
| |||||||
| |||||||
1 | Where tax stamps are required, the Department may authorize | ||||||
2 | distributors
to affix revenue tax stamps by imprinting tax | ||||||
3 | meter stamps upon original
packages of cigarettes. The | ||||||
4 | Department shall adopt rules and regulations
relating to the | ||||||
5 | imprinting of such tax meter stamps as will result in
payment | ||||||
6 | of the proper taxes as herein imposed. No distributor may affix
| ||||||
7 | revenue tax stamps to original packages of cigarettes by | ||||||
8 | imprinting meter
stamps thereon unless such distributor has | ||||||
9 | first obtained permission from
the Department to employ this | ||||||
10 | method of affixation. The Department shall
regulate the use of | ||||||
11 | tax meters and may, to assure the proper collection of
the | ||||||
12 | taxes imposed by this Act, revoke or suspend the privilege, | ||||||
13 | theretofore
granted by the Department to any distributor, to | ||||||
14 | imprint tax meter stamps
upon original packages of cigarettes.
| ||||||
15 | The tax hereby imposed and not paid pursuant to this | ||||||
16 | Section shall be
paid to the Department directly by any person | ||||||
17 | using such cigarettes within
this State, pursuant to Section 12 | ||||||
18 | hereof.
| ||||||
19 | A distributor shall not affix, or cause to be affixed, any | ||||||
20 | stamp or imprint
to a package
of cigarettes, as provided for in | ||||||
21 | this Section, if the tobacco product
manufacturer, as defined | ||||||
22 | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | ||||||
23 | that made or sold the cigarettes has failed to become a | ||||||
24 | participating
manufacturer, as defined in subdivision (a)(1) | ||||||
25 | of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, | ||||||
26 | or has failed to create a qualified escrow
fund for any |
| |||||||
| |||||||
1 | cigarettes manufactured by the tobacco
product manufacturer | ||||||
2 | and sold in this State or otherwise failed to bring itself
into
| ||||||
3 | compliance with subdivision (a)(2) of Section 15 of the Tobacco | ||||||
4 | Product
Manufacturers' Escrow Act.
| ||||||
5 | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; | ||||||
6 | 97-1129, eff. 8-28-12.)
| ||||||
7 | Section 40. The Hotel Operators' Occupation Tax Act is | ||||||
8 | amended by changing Sections 2 and 6 as follows:
| ||||||
9 | (35 ILCS 145/2) (from Ch. 120, par. 481b.32)
| ||||||
10 | Sec. 2. As used in this Act, unless the context otherwise | ||||||
11 | requires:
| ||||||
12 | (1) "Hotel" means any building or buildings in which | ||||||
13 | the public may,
for a consideration, obtain living | ||||||
14 | quarters, sleeping or housekeeping
accommodations. The | ||||||
15 | term includes inns, motels, tourist homes or courts,
| ||||||
16 | lodging houses, rooming houses and apartment houses.
| ||||||
17 | (2) "Operator" means any person operating a hotel , | ||||||
18 | including, but not limited to, an online travel company | ||||||
19 | that sells hotel rooms to the general public .
| ||||||
20 | (3) "Occupancy" means the use or possession, or the | ||||||
21 | right to the use
or possession, of any room or rooms in a | ||||||
22 | hotel for any purpose, or the
right to the use or | ||||||
23 | possession of the furnishings or to the services and
| ||||||
24 | accommodations accompanying the use and possession of the |
| |||||||
| |||||||
1 | room or rooms.
| ||||||
2 | "Online travel company" means a retailer that | ||||||
3 | purchases hotel rooms in the State at a wholesale price and | ||||||
4 | resells those rooms to the general public via an Internet | ||||||
5 | website.
| ||||||
6 | (4) "Room" or "rooms" means any living quarters, | ||||||
7 | sleeping or
housekeeping accommodations.
| ||||||
8 | (5) "Permanent resident" means any person who occupied | ||||||
9 | or has the
right to occupy any room or rooms, regardless of | ||||||
10 | whether or not it is the
same room or rooms, in a hotel for | ||||||
11 | at least 30 consecutive days.
| ||||||
12 | (6) "Rent" or "rental" means the consideration | ||||||
13 | received for
occupancy, valued in money, whether received | ||||||
14 | in money or otherwise,
including all receipts, cash, | ||||||
15 | credits and property or services of any
kind or nature.
| ||||||
16 | (7) "Department" means the Department of Revenue.
| ||||||
17 | (8) "Person" means any natural individual, firm, | ||||||
18 | partnership,
association, joint stock company, joint | ||||||
19 | adventure, public or private
corporation, limited | ||||||
20 | liability company, or a receiver, executor, trustee,
| ||||||
21 | guardian or other representative appointed by order of any | ||||||
22 | court.
| ||||||
23 | (Source: P.A. 87-951; 88-480.)
| ||||||
24 | (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
| ||||||
25 | Sec. 6. Except as provided hereinafter in this Section, on |
| |||||||
| |||||||
1 | or before
the last day of each calendar month, every person | ||||||
2 | engaged in the
business of renting, leasing or letting rooms in | ||||||
3 | a hotel in this State
during the preceding calendar month shall | ||||||
4 | file a return with the
Department, stating:
| ||||||
5 | 1. The name of the operator;
| ||||||
6 | 2. His residence address and the address of his | ||||||
7 | principal place of
business and the address of the | ||||||
8 | principal place of business (if that is
a different | ||||||
9 | address) from which he engages in the business of renting,
| ||||||
10 | leasing or letting rooms in a hotel in this State;
| ||||||
11 | 3. Total amount of rental receipts received by him | ||||||
12 | during the
preceding calendar month from renting, leasing | ||||||
13 | or letting rooms during
such preceding calendar month;
| ||||||
14 | 4. Total amount of rental receipts received by him | ||||||
15 | during the
preceding calendar month from renting, leasing | ||||||
16 | or letting rooms to
permanent residents during such | ||||||
17 | preceding calendar month;
| ||||||
18 | 5. Total amount of other exclusions from gross rental | ||||||
19 | receipts
allowed by this Act;
| ||||||
20 | 6. Gross rental receipts which were received by him | ||||||
21 | during the
preceding calendar month and upon the basis of | ||||||
22 | which the tax is imposed;
| ||||||
23 | 7. The amount of tax due;
| ||||||
24 | 8. Such other reasonable information as the Department | ||||||
25 | may require.
| ||||||
26 | If the operator's average monthly tax liability to the |
| |||||||
| |||||||
1 | Department
does not exceed $200, the Department may authorize | ||||||
2 | his returns to be
filed on a quarter annual basis, with the | ||||||
3 | return for January, February
and March of a given year being | ||||||
4 | due by April 30 of such year; with the
return for April, May | ||||||
5 | and June of a given year being due by July 31 of
such year; with | ||||||
6 | the return for July, August and September of a given
year being | ||||||
7 | due by October 31 of such year, and with the return for
| ||||||
8 | October, November and December of a given year being due by | ||||||
9 | January 31
of the following year.
| ||||||
10 | If the operator's average monthly tax liability to the | ||||||
11 | Department
does not exceed $50, the Department may authorize | ||||||
12 | his returns to be
filed on an annual basis, with the return for | ||||||
13 | a given year being due by
January 31 of the following year.
| ||||||
14 | Such quarter annual and annual returns, as to form and | ||||||
15 | substance,
shall be subject to the same requirements as monthly | ||||||
16 | returns.
| ||||||
17 | Notwithstanding any other provision in this Act concerning | ||||||
18 | the time
within which an operator may file his return, in the | ||||||
19 | case of any
operator who ceases to engage in a kind of business | ||||||
20 | which makes him
responsible for filing returns under this Act, | ||||||
21 | such operator shall file
a final return under this Act with the | ||||||
22 | Department not more than 1 month
after discontinuing such | ||||||
23 | business.
| ||||||
24 | Where the same person has more than 1 business registered | ||||||
25 | with the
Department under separate registrations under this | ||||||
26 | Act, such person
shall not file each return that is due as a |
| |||||||
| |||||||
1 | single return covering all
such registered businesses, but | ||||||
2 | shall file separate returns for each
such registered business.
| ||||||
3 | In his return, the operator shall determine the value of | ||||||
4 | any
consideration other than money received by him in | ||||||
5 | connection with the
renting, leasing or letting of rooms in the | ||||||
6 | course of his business and
he shall include such value in his | ||||||
7 | return. Such determination shall be
subject to review and | ||||||
8 | revision by the Department in the manner
hereinafter provided | ||||||
9 | for the correction of returns.
| ||||||
10 | Where the operator is a corporation, the return filed on | ||||||
11 | behalf of
such corporation shall be signed by the president, | ||||||
12 | vice-president,
secretary or treasurer or by the properly | ||||||
13 | accredited agent of such
corporation.
| ||||||
14 | The person filing the return herein provided for shall, at | ||||||
15 | the time of
filing such return, pay to the Department the | ||||||
16 | amount of tax herein imposed.
The operator filing the return | ||||||
17 | under this Section shall, at the time of
filing such return, | ||||||
18 | pay to the Department the amount of tax imposed by this
Act | ||||||
19 | less the vendor discount amount a discount of 2.1% or $25 per | ||||||
20 | calendar year, whichever is greater ,
which is allowed to | ||||||
21 | reimburse the operator for the expenses incurred in
keeping | ||||||
22 | records, preparing and filing returns, remitting the tax and
| ||||||
23 | supplying data to the Department on request. Prior to January | ||||||
24 | 1, 2018, the vendor discount amount shall be 2.1% or $25 per | ||||||
25 | calendar year, whichever is greater. On and after January 1, | ||||||
26 | 2018, the vendor discount amount shall be the sum of (i) 1.75% |
| |||||||
| |||||||
1 | of the first $1,000 collected during the calendar year and (ii) | ||||||
2 | 1% of the amount of proceeds collected during the calendar year | ||||||
3 | that exceeds $1,000; however, on and after January 1, 2018, in | ||||||
4 | no event shall the discount allowed to any person be less than | ||||||
5 | $25 in any calendar year or more than $1,500 in any calendar | ||||||
6 | year.
| ||||||
7 | There shall be deposited in the Build Illinois Fund in the | ||||||
8 | State
Treasury for each State fiscal year 40% of the amount of | ||||||
9 | total
net proceeds from the tax imposed by subsection (a) of | ||||||
10 | Section 3.
Of the remaining 60%, $5,000,000 shall be deposited | ||||||
11 | in the Illinois
Sports Facilities Fund and credited to the | ||||||
12 | Subsidy Account each fiscal
year by making monthly deposits in | ||||||
13 | the amount of 1/8 of $5,000,000 plus
cumulative deficiencies in | ||||||
14 | such deposits for prior months, and an
additional $8,000,000 | ||||||
15 | shall be deposited in the Illinois Sports Facilities
Fund and | ||||||
16 | credited to the Advance Account each fiscal year by making | ||||||
17 | monthly
deposits in the amount of 1/8 of $8,000,000 plus any | ||||||
18 | cumulative deficiencies
in such deposits for prior months; | ||||||
19 | provided, that for fiscal years ending
after June 30, 2001, the | ||||||
20 | amount to be so deposited into the Illinois
Sports Facilities | ||||||
21 | Fund and credited to the Advance Account each fiscal year
shall | ||||||
22 | be increased from $8,000,000 to the then applicable Advance | ||||||
23 | Amount and
the required monthly deposits beginning with July | ||||||
24 | 2001 shall be in the amount
of 1/8 of the then applicable | ||||||
25 | Advance Amount plus any cumulative deficiencies
in those | ||||||
26 | deposits for prior months. (The deposits of the additional |
| |||||||
| |||||||
1 | $8,000,000
or the then applicable Advance Amount, as | ||||||
2 | applicable,
during each fiscal year shall be treated as | ||||||
3 | advances
of funds to the Illinois Sports Facilities Authority | ||||||
4 | for its corporate
purposes to the extent paid to the Authority | ||||||
5 | or its trustee and shall be
repaid into the General Revenue | ||||||
6 | Fund in the State Treasury by the State
Treasurer on behalf of | ||||||
7 | the Authority pursuant to Section 19 of the Illinois
Sports | ||||||
8 | Facilities Authority Act, as amended. If in any fiscal year the | ||||||
9 | full
amount of the then applicable Advance Amount
is not repaid | ||||||
10 | into the General Revenue Fund, then the deficiency shall be | ||||||
11 | paid
from the amount in the Local Government Distributive Fund | ||||||
12 | that would otherwise
be allocated to the City of Chicago under | ||||||
13 | the State Revenue Sharing Act.)
| ||||||
14 | For purposes of the foregoing paragraph, the term "Advance | ||||||
15 | Amount"
means, for fiscal year 2002, $22,179,000, and for | ||||||
16 | subsequent fiscal years
through fiscal year 2032, 105.615% of | ||||||
17 | the Advance Amount for the immediately
preceding fiscal year, | ||||||
18 | rounded up to the nearest $1,000.
| ||||||
19 | Of the remaining 60% of the amount of total net proceeds | ||||||
20 | prior to August 1, 2011 from the tax
imposed by subsection (a) | ||||||
21 | of Section 3 after all required deposits in the
Illinois Sports | ||||||
22 | Facilities Fund, the amount equal to 8% of the net revenue
| ||||||
23 | realized from this Act plus an amount equal to
8% of the net | ||||||
24 | revenue realized from any tax imposed under Section 4.05 of the
| ||||||
25 | Chicago World's Fair-1992 Authority Act during the preceding | ||||||
26 | month shall be
deposited in the Local Tourism Fund each month |
| |||||||
| |||||||
1 | for purposes authorized by
Section 605-705 of the Department of | ||||||
2 | Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of | ||||||
3 | the remaining 60% of the amount of total net proceeds beginning | ||||||
4 | on August 1, 2011 from the tax imposed by subsection (a) of | ||||||
5 | Section 3 after all required deposits in the Illinois Sports | ||||||
6 | Facilities Fund, an amount equal to 8% of the net revenue | ||||||
7 | realized from this Act plus an amount equal to 8% of the net | ||||||
8 | revenue realized from any tax imposed under Section 4.05 of the | ||||||
9 | Chicago World's Fair-1992 Authority Act during the preceding | ||||||
10 | month shall be deposited as follows: 18% of such amount shall | ||||||
11 | be deposited into the Chicago Travel Industry Promotion Fund | ||||||
12 | for the purposes described in subsection (n) of Section 5 of | ||||||
13 | the Metropolitan Pier and Exposition Authority Act and the | ||||||
14 | remaining 82% of such amount shall be deposited into the Local | ||||||
15 | Tourism Fund each month for purposes authorized by Section | ||||||
16 | 605-705 of the Department of Commerce and Economic Opportunity | ||||||
17 | Law. Beginning on August 1, 1999 and ending on July 31, 2011, | ||||||
18 | an amount equal to 4.5% of the net revenue
realized from the | ||||||
19 | Hotel Operators' Occupation Tax Act during the preceding
month | ||||||
20 | shall be deposited into the International Tourism Fund for the | ||||||
21 | purposes
authorized in Section 605-707 of the Department of | ||||||
22 | Commerce
and Economic Opportunity Law. Beginning on August 1, | ||||||
23 | 2011, an amount equal to 4.5% of the net revenue realized from | ||||||
24 | this Act during the preceding month shall be deposited as | ||||||
25 | follows: 55% of such amount shall be deposited into the Chicago | ||||||
26 | Travel Industry Promotion Fund for the purposes described in |
| |||||||
| |||||||
1 | subsection (n) of Section 5 of the Metropolitan Pier and | ||||||
2 | Exposition Authority Act and the remaining 45% of such amount | ||||||
3 | deposited into the International Tourism Fund for the purposes | ||||||
4 | authorized in Section 605-707 of the Department of Commerce and | ||||||
5 | Economic Opportunity Law. "Net
revenue realized for a month" | ||||||
6 | means the revenue collected by the State under
that Act during | ||||||
7 | the previous month less the amount paid out during that same
| ||||||
8 | month as refunds to taxpayers for overpayment of liability | ||||||
9 | under that Act.
| ||||||
10 | After making all these deposits, all other proceeds of the | ||||||
11 | tax imposed under
subsection (a) of Section 3 shall be | ||||||
12 | deposited in the General Revenue Fund in
the State Treasury. | ||||||
13 | All moneys received by the Department from the additional
tax | ||||||
14 | imposed under subsection (b) of Section 3 shall be deposited | ||||||
15 | into the Build
Illinois Fund in the State Treasury.
| ||||||
16 | The Department may, upon separate written notice to a | ||||||
17 | taxpayer, require
the taxpayer to prepare and file with the | ||||||
18 | Department on a form prescribed
by the Department within not | ||||||
19 | less than 60 days after receipt of the notice
an annual | ||||||
20 | information return for the tax year specified in the notice.
| ||||||
21 | Such annual return to the Department shall include a statement | ||||||
22 | of gross
receipts as shown by the operator's last State income | ||||||
23 | tax return. If the
total receipts of the business as reported | ||||||
24 | in the State income tax return
do not agree with the gross | ||||||
25 | receipts reported to the Department for the
same period, the | ||||||
26 | operator shall attach to his annual information return a
|
| |||||||
| |||||||
1 | schedule showing a reconciliation of the 2 amounts and the | ||||||
2 | reasons for the
difference. The operator's annual information | ||||||
3 | return to the Department
shall also disclose pay roll | ||||||
4 | information of the operator's business during
the year covered | ||||||
5 | by such return and any additional reasonable information
which | ||||||
6 | the Department deems would be helpful in determining the | ||||||
7 | accuracy of
the monthly, quarterly or annual tax returns by | ||||||
8 | such operator as
hereinbefore provided for in this Section.
| ||||||
9 | If the annual information return required by this Section | ||||||
10 | is not filed
when and as required the taxpayer shall be liable | ||||||
11 | for a penalty in an
amount determined in accordance with | ||||||
12 | Section 3-4 of the Uniform Penalty and
Interest Act until such | ||||||
13 | return is filed as required, the penalty to be
assessed and | ||||||
14 | collected in the same manner as any other penalty provided
for | ||||||
15 | in this Act.
| ||||||
16 | The chief executive officer, proprietor, owner or highest | ||||||
17 | ranking manager
shall sign the annual return to certify the | ||||||
18 | accuracy of the information
contained therein. Any person who | ||||||
19 | willfully signs the annual return containing
false or | ||||||
20 | inaccurate information shall be guilty of perjury and punished
| ||||||
21 | accordingly. The annual return form prescribed by the | ||||||
22 | Department shall
include a warning that the person signing the | ||||||
23 | return may be liable for perjury.
| ||||||
24 | The foregoing portion of this Section concerning the filing | ||||||
25 | of an annual
information return shall not apply to an operator | ||||||
26 | who is not required to
file an income tax return with the |
| |||||||
| |||||||
1 | United States Government.
| ||||||
2 | (Source: P.A. 97-617, eff. 10-26-11.)
| ||||||
3 | Section 45. The Motor Fuel Tax Law is amended by changing | ||||||
4 | Sections 2b, 6, and 6a as follows:
| ||||||
5 | (35 ILCS 505/2b) (from Ch. 120, par. 418b)
| ||||||
6 | Sec. 2b.
In addition to the tax collection and reporting | ||||||
7 | responsibilities
imposed elsewhere in this Act, a person who is | ||||||
8 | required to pay the tax imposed
by Section 2a of this Act shall | ||||||
9 | pay the tax to the Department by return showing
all fuel | ||||||
10 | purchased, acquired or received and sold, distributed or used | ||||||
11 | during
the preceding calendar month
including losses of fuel as | ||||||
12 | the result of evaporation or shrinkage due to
temperature | ||||||
13 | variations, and such other reasonable information as the
| ||||||
14 | Department may require.
Losses of fuel as the result of | ||||||
15 | evaporation or shrinkage due to temperature
variations may not | ||||||
16 | exceed 1% of the total gallons in
storage at the
beginning of | ||||||
17 | the month, plus the receipts of gallonage during the month, | ||||||
18 | minus
the gallonage remaining in storage at the end of the | ||||||
19 | month. Any loss reported
that is in excess of this amount shall | ||||||
20 | be subject to the tax imposed by
Section
2a of this Law.
On and | ||||||
21 | after July 1, 2001, for each 6-month period January through | ||||||
22 | June, net
losses of fuel (for each category of fuel that is | ||||||
23 | required to be reported on a
return) as the result of | ||||||
24 | evaporation or shrinkage due to temperature variations
may not |
| |||||||
| |||||||
1 | exceed 1% of the total gallons in storage at the beginning of | ||||||
2 | each
January, plus the receipts of gallonage each January | ||||||
3 | through June, minus the
gallonage remaining in storage at the | ||||||
4 | end of each June. On and after July 1,
2001, for each 6-month | ||||||
5 | period July through December, net losses of fuel (for
each | ||||||
6 | category of fuel that is required to be reported on a return) | ||||||
7 | as the
result of evaporation or shrinkage due to temperature | ||||||
8 | variations may not exceed
1% of the total gallons in storage at | ||||||
9 | the beginning of each July, plus the
receipts of gallonage each | ||||||
10 | July through December, minus the gallonage remaining
in storage | ||||||
11 | at the end of each December. Any net loss reported that is in
| ||||||
12 | excess of this amount shall be subject to the tax imposed by | ||||||
13 | Section 2a of this
Law. For purposes of this Section, "net | ||||||
14 | loss" means the number of gallons
gained through temperature | ||||||
15 | variations minus the number of gallons lost through
temperature | ||||||
16 | variations or evaporation for each of the respective 6-month
| ||||||
17 | periods.
| ||||||
18 | The return shall be prescribed by the Department and shall | ||||||
19 | be filed
between the 1st and 20th days of each calendar month. | ||||||
20 | The Department may, in
its discretion, combine the returns | ||||||
21 | filed under this Section, Section 5, and
Section 5a of this | ||||||
22 | Act. The return must be accompanied by appropriate
| ||||||
23 | computer-generated magnetic media supporting schedule data in | ||||||
24 | the format
required by the Department, unless, as provided by | ||||||
25 | rule, the Department grants
an exception upon petition of a | ||||||
26 | taxpayer. If the return is filed timely, the
seller shall take |
| |||||||
| |||||||
1 | a discount of 2% through June 30, 2003 and 1.75%
thereafter | ||||||
2 | which is allowed to reimburse
the seller for
the expenses | ||||||
3 | incurred in keeping records, preparing and filing returns,
| ||||||
4 | collecting and remitting the tax and supplying data to the | ||||||
5 | Department on
request.
The discount, however, shall be | ||||||
6 | applicable only to the amount
of payment
which accompanies a | ||||||
7 | return that is filed timely in accordance with this
Section. | ||||||
8 | Prior to January 1, 2018, the vendor discount amount shall be | ||||||
9 | 1.75%. On and after January 1, 2018, the vendor discount amount | ||||||
10 | shall be the sum of (i) 1.75% of the first $1,000 collected | ||||||
11 | during the calendar year and (ii) 1% of the amount of proceeds | ||||||
12 | collected during the calendar year that exceeds $1,000; | ||||||
13 | however, on and after January 1, 2018, in no event shall the | ||||||
14 | discount allowed to any person be more than $1,500 in any | ||||||
15 | calendar year.
| ||||||
16 | (Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)
| ||||||
17 | (35 ILCS 505/6) (from Ch. 120, par. 422)
| ||||||
18 | Sec. 6. Collection of tax; distributors. A distributor who | ||||||
19 | sells or
distributes any motor fuel, which he is
required by | ||||||
20 | Section 5 to report to the Department when filing a return,
| ||||||
21 | shall (except as hereinafter provided) collect at the time of | ||||||
22 | such sale and
distribution, the amount of tax imposed under | ||||||
23 | this Act on all such motor
fuel sold and distributed, and at | ||||||
24 | the time of making a return, the
distributor shall pay to the | ||||||
25 | Department the amount so collected less a discount
of 2% |
| |||||||
| |||||||
1 | through June 30, 2003 and 1.75% thereafter which is allowed to
| ||||||
2 | reimburse the distributor for the
expenses incurred
in keeping | ||||||
3 | records, preparing and filing returns, collecting and | ||||||
4 | remitting
the tax and supplying data to the Department on | ||||||
5 | request, and shall also
pay to the Department an amount equal | ||||||
6 | to the amount that would be collectible
as a tax in the event | ||||||
7 | of a sale thereof on all such motor fuel used by said
| ||||||
8 | distributor during the period covered by the return.
Prior to | ||||||
9 | July 1, 2003, the discount amount shall be 2%. From July 1, | ||||||
10 | 2003 through December 31, 2017, the discount amount shall be | ||||||
11 | 1.75%. On and after January 1, 2018, the discount amount shall | ||||||
12 | be the sum of (i) 1.75% of the first $1,000 collected during | ||||||
13 | the calendar year and (ii) 1% of the amount of proceeds | ||||||
14 | collected during the calendar year that exceeds $1,000; | ||||||
15 | however, on and after January 1, 2018, in no event shall the | ||||||
16 | discount allowed to any distributor be more than $1,500 in any | ||||||
17 | calendar year. However, no payment shall be made based upon | ||||||
18 | dyed diesel fuel used
by the distributor for non-highway | ||||||
19 | purposes.
The discount
shall only be applicable to the amount | ||||||
20 | of tax payment which accompanies a
return which is filed timely | ||||||
21 | in accordance with Section 5 of this Act.
In each subsequent | ||||||
22 | sale of motor fuel on which the amount of tax imposed under
| ||||||
23 | this Act has been collected as provided in this Section, the | ||||||
24 | amount so
collected shall be added to the selling price, so | ||||||
25 | that the amount of tax is
paid ultimately by the user of the | ||||||
26 | motor fuel. However, no collection or
payment shall be made in |
| |||||||
| |||||||
1 | the case of the sale or use of any motor fuel to the
extent to | ||||||
2 | which such sale or use of motor fuel may not, under the | ||||||
3 | constitution
and statutes of the United States, be made the | ||||||
4 | subject of taxation by this
State. A person whose license to | ||||||
5 | act as a distributor of fuel has been revoked
shall, at the | ||||||
6 | time of making a return, also pay to the Department an amount
| ||||||
7 | equal to the amount that would be collectible as a tax in the | ||||||
8 | event of a sale
thereof on all motor fuel, which he is required | ||||||
9 | by the second paragraph of
Section 5 to report to the | ||||||
10 | Department in making a return, and which he had on
hand on the | ||||||
11 | date on which the license was revoked, and with respect to | ||||||
12 | which no
tax had been previously paid under this Act.
| ||||||
13 | A distributor may make tax free sales of motor fuel, with | ||||||
14 | respect to
which he is otherwise required to collect the tax, | ||||||
15 | only as specified in the following items 1 through 7.
| ||||||
16 | 1. When the sale is made to a person holding a valid | ||||||
17 | unrevoked license
as a distributor, by making a specific | ||||||
18 | notation thereof on invoices or sales
slip covering each | ||||||
19 | sale.
| ||||||
20 | 2. When the sale is made with delivery to a purchaser | ||||||
21 | outside of this
State.
| ||||||
22 | 3. When the sale is made to the Federal Government or | ||||||
23 | its
instrumentalities.
| ||||||
24 | 4. When the sale is made to a municipal corporation | ||||||
25 | owning and operating
a local transportation system for | ||||||
26 | public service in this State when an
official certificate |
| |||||||
| |||||||
1 | of exemption is obtained in lieu of the tax.
| ||||||
2 | 5. When the sale is made to a privately owned public | ||||||
3 | utility owning and
operating 2 axle vehicles designed and | ||||||
4 | used for transporting more than 7
passengers, which | ||||||
5 | vehicles are used as common carriers in general
| ||||||
6 | transportation of passengers, are not devoted to any | ||||||
7 | specialized purpose
and are operated entirely within the | ||||||
8 | territorial limits of a single
municipality or of any group | ||||||
9 | of contiguous municipalities, or in a close
radius thereof, | ||||||
10 | and the operations of which are subject to the regulations
| ||||||
11 | of the Illinois Commerce Commission, when an official | ||||||
12 | certificate of
exemption is obtained in lieu of the tax.
| ||||||
13 | 6. When a sale of special fuel is made to a person | ||||||
14 | holding a valid,
unrevoked license as a supplier, by making | ||||||
15 | a specific notation thereof on
the invoice or sales slip | ||||||
16 | covering each such sale.
| ||||||
17 | 7. When a sale of dyed diesel fuel is made to someone
| ||||||
18 | other than a licensed
distributor or a licensed supplier | ||||||
19 | for non-highway purposes and the fuel is (i) delivered from | ||||||
20 | a vehicle designed for the specific purpose of such sales | ||||||
21 | and delivered directly into a stationary bulk storage tank | ||||||
22 | that displays the notice required by Section 4f of this | ||||||
23 | Act, (ii) delivered from a vehicle designed for the | ||||||
24 | specific purpose of such sales and delivered directly into | ||||||
25 | the fuel supply tanks of non-highway vehicles that are not | ||||||
26 | required to be registered for highway use, or (iii) |
| |||||||
| |||||||
1 | dispensed from a dyed diesel fuel dispensing facility that | ||||||
2 | has withdrawal facilities that are not readily accessible | ||||||
3 | to and are not capable of dispensing dyed diesel fuel into | ||||||
4 | the fuel supply tank of a motor vehicle. | ||||||
5 | A specific notation is required on
the
invoice or sales | ||||||
6 | slip covering such sales, and any supporting
documentation | ||||||
7 | that may be required by the Department must be obtained by | ||||||
8 | the distributor.
The distributor shall obtain and
keep the | ||||||
9 | supporting documentation in such form as the Department may | ||||||
10 | require by
rule.
| ||||||
11 | For purposes of this item 7, a dyed diesel fuel | ||||||
12 | dispensing facility is considered to have withdrawal | ||||||
13 | facilities that are "not readily accessible to and not | ||||||
14 | capable of dispensing dyed diesel fuel into the fuel supply | ||||||
15 | tank of a motor vehicle" only if the dyed diesel fuel is | ||||||
16 | delivered from: (i) a dispenser hose that is short enough | ||||||
17 | so that it will not reach the fuel supply tank of a motor | ||||||
18 | vehicle or (ii) a dispenser that is enclosed by a fence or | ||||||
19 | other physical barrier so that a vehicle cannot pull | ||||||
20 | alongside the dispenser to permit fueling.
| ||||||
21 | 8. (Blank).
| ||||||
22 | All special fuel sold or used for non-highway purposes must | ||||||
23 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
24 | All suits or other proceedings brought for the purpose of | ||||||
25 | recovering any
taxes, interest or penalties due the State of | ||||||
26 | Illinois under this Act may
be maintained in the name of the |
| |||||||
| |||||||
1 | Department.
| ||||||
2 | (Source: P.A. 96-1384, eff. 7-29-10.)
| ||||||
3 | (35 ILCS 505/6a) (from Ch. 120, par. 422a)
| ||||||
4 | Sec. 6a. Collection of tax; suppliers. A supplier, other | ||||||
5 | than a licensed
distributor, who sells or
distributes any | ||||||
6 | special fuel, which he is required by Section 5a to report
to | ||||||
7 | the Department when filing a return, shall (except as | ||||||
8 | hereinafter
provided) collect at the time of such sale and | ||||||
9 | distribution, the amount of
tax imposed under this Act on all | ||||||
10 | such special fuel sold and distributed,
and at the time of | ||||||
11 | making a return, the supplier shall pay to the
Department the | ||||||
12 | amount so collected less a discount of 2% through June 30,
2003 | ||||||
13 | and 1.75% thereafter which
is allowed
to reimburse the supplier | ||||||
14 | for the expenses incurred in keeping records,
preparing and | ||||||
15 | filing returns, collecting and remitting the tax and
supplying | ||||||
16 | data to the Department on request, and shall also pay to the
| ||||||
17 | Department an amount equal to the amount that would be | ||||||
18 | collectible as a tax
in the event of a sale thereof on all such | ||||||
19 | special fuel used by said
supplier during the period covered by | ||||||
20 | the return. Prior to July 1, 2003, the discount amount shall be | ||||||
21 | 2%. From July 1, 2003 through December 31, 2017, the discount | ||||||
22 | amount shall be 1.75%. On and after January 1, 2018, the | ||||||
23 | discount amount shall be the sum of (i) 1.75% of the first | ||||||
24 | $1,000 collected during the calendar year and (ii) 1% of the | ||||||
25 | amount of proceeds collected during the calendar year that |
| |||||||
| |||||||
1 | exceeds $1,000; however, on and after January 1, 2018, in no | ||||||
2 | event shall the discount allowed to any distributor be more | ||||||
3 | than $1,500 in any calendar year. However,
no payment shall be | ||||||
4 | made based upon dyed diesel fuel used by said
supplier for | ||||||
5 | non-highway purposes.
The discount
shall only be applicable to | ||||||
6 | the amount of tax payment which accompanies a
return which is | ||||||
7 | filed timely in accordance with Section 5(a) of this Act.
In | ||||||
8 | each subsequent sale of special fuel on which the amount of tax | ||||||
9 | imposed
under this Act has been collected as provided in this | ||||||
10 | Section, the amount
so collected shall be added to the selling | ||||||
11 | price, so that the amount of tax
is paid ultimately by the user | ||||||
12 | of the special fuel. However,
no collection or payment shall be | ||||||
13 | made in the case of the sale or use of
any special fuel to the | ||||||
14 | extent to which such sale or use of motor fuel
may not, under | ||||||
15 | the Constitution and statutes of the United States, be made
the | ||||||
16 | subject of taxation by this State.
| ||||||
17 | A person whose license to act as supplier of special fuel | ||||||
18 | has been revoked
shall, at the time of making a return, also | ||||||
19 | pay to the Department an amount
equal to the amount that would | ||||||
20 | be collectible as a tax in the event of a
sale thereof on all | ||||||
21 | special fuel, which he is required by the 1st paragraph
of | ||||||
22 | Section 5a to report to the Department in making a return.
| ||||||
23 | A supplier may make tax-free sales of special fuel, with | ||||||
24 | respect to which
he is otherwise required to collect the tax, | ||||||
25 | only as specified in the following items 1 through
7.
| ||||||
26 | 1. When the sale is made to the federal government or |
| |||||||
| |||||||
1 | its
instrumentalities.
| ||||||
2 | 2. When the sale is made to a municipal corporation | ||||||
3 | owning and operating
a local transportation system for | ||||||
4 | public service in this State when an
official certificate | ||||||
5 | of exemption is obtained in lieu of the tax.
| ||||||
6 | 3. When the sale is made to a privately owned public | ||||||
7 | utility owning and
operating 2 axle vehicles designed and | ||||||
8 | used for transporting more than 7
passengers, which | ||||||
9 | vehicles are used as common carriers in general
| ||||||
10 | transportation of passengers, are not devoted to any | ||||||
11 | specialized purpose
and are operated entirely within the | ||||||
12 | territorial limits of a single
municipality or of any group | ||||||
13 | of contiguous municipalities, or in a close
radius thereof, | ||||||
14 | and the operations of which are subject to the regulations
| ||||||
15 | of the Illinois Commerce Commission, when an official | ||||||
16 | certificate of
exemption is obtained in lieu of the tax.
| ||||||
17 | 4. When a sale is made to a person holding a valid
| ||||||
18 | unrevoked license as a supplier or a distributor by making | ||||||
19 | a specific
notation thereof on invoice or sales slip | ||||||
20 | covering each such sale.
| ||||||
21 | 5. When a sale of dyed diesel fuel is made to someone | ||||||
22 | other than a
licensed distributor or licensed supplier
for | ||||||
23 | non-highway purposes and the fuel is (i) delivered from a | ||||||
24 | vehicle designed for the specific purpose of such sales and | ||||||
25 | delivered directly into a stationary bulk storage tank that | ||||||
26 | displays the notice required by Section 4f of this Act, |
| |||||||
| |||||||
1 | (ii) delivered from a vehicle designed for the specific | ||||||
2 | purpose of such sales and delivered directly into the fuel | ||||||
3 | supply tanks of non-highway vehicles that are not required | ||||||
4 | to be registered for highway use, or (iii) dispensed from a | ||||||
5 | dyed diesel fuel dispensing facility that has withdrawal | ||||||
6 | facilities that are not readily accessible to and are not | ||||||
7 | capable of dispensing dyed diesel fuel into the fuel supply | ||||||
8 | tank of a motor vehicle. | ||||||
9 | A specific notation is required on the
invoice or sales | ||||||
10 | slip covering such sales, and any supporting
documentation | ||||||
11 | that may be required by the Department must be obtained by | ||||||
12 | the supplier.
The supplier shall obtain and
keep the | ||||||
13 | supporting documentation in such form as the Department may | ||||||
14 | require by
rule.
| ||||||
15 | For purposes of this item 5, a dyed diesel fuel | ||||||
16 | dispensing facility is considered to have withdrawal | ||||||
17 | facilities that are "not readily accessible to and not | ||||||
18 | capable of dispensing dyed diesel fuel into the fuel supply | ||||||
19 | tank of a motor vehicle" only if the dyed diesel fuel is | ||||||
20 | delivered from: (i) a dispenser hose that is short enough | ||||||
21 | so that it will not reach the fuel supply tank of a motor | ||||||
22 | vehicle or (ii) a dispenser that is enclosed by a fence or | ||||||
23 | other physical barrier so that a vehicle cannot pull | ||||||
24 | alongside the dispenser to permit fueling.
| ||||||
25 | 6. (Blank).
| ||||||
26 | 7. When a sale of special fuel is made to a person |
| |||||||
| |||||||
1 | where delivery is
made outside of this State.
| ||||||
2 | All special fuel sold or used for non-highway purposes must | ||||||
3 | have a dye
added
in accordance with Section 4d of this Law.
| ||||||
4 | All suits or other proceedings brought for the purpose of | ||||||
5 | recovering any
taxes, interest or penalties due the State of | ||||||
6 | Illinois under this Act may
be maintained in the name of the | ||||||
7 | Department.
| ||||||
8 | (Source: P.A. 96-1384, eff. 7-29-10.)
| ||||||
9 | Section 50. The Telecommunications Excise Tax Act is | ||||||
10 | amended by changing Section 6 as follows:
| ||||||
11 | (35 ILCS 630/6) (from Ch. 120, par. 2006)
| ||||||
12 | Sec. 6.
Except as provided hereinafter in this Section, on | ||||||
13 | or before
the last day of each month, each retailer maintaining | ||||||
14 | a place
of
business in
this State shall make a return to the | ||||||
15 | Department for the preceding calendar
month, stating:
| ||||||
16 | 1. His name;
| ||||||
17 | 2. The address of his principal place of business, or | ||||||
18 | the
address of
the principal place of business (if that is | ||||||
19 | a different address) from which
he engages in the business | ||||||
20 | of transmitting telecommunications;
| ||||||
21 | 3. Total amount of gross charges billed by him during | ||||||
22 | the preceding
calendar month for providing | ||||||
23 | telecommunications during such calendar month;
| ||||||
24 | 4. Total amount received by him during the preceding |
| |||||||
| |||||||
1 | calendar month on
credit extended;
| ||||||
2 | 5. Deductions allowed by law;
| ||||||
3 | 6. Gross charges which were billed by him during the | ||||||
4 | preceding calendar
month and upon the basis of which the | ||||||
5 | tax is imposed;
| ||||||
6 | 7. Amount of tax (computed upon Item 6);
| ||||||
7 | 8. Such other reasonable information as the Department | ||||||
8 | may require.
| ||||||
9 | Any taxpayer required to make payments under this Section | ||||||
10 | may make the
payments by electronic funds transfer. The | ||||||
11 | Department shall adopt
rules
necessary to effectuate a program | ||||||
12 | of electronic funds transfer.
Any taxpayer who has average | ||||||
13 | monthly tax billings due to the Department under
this Act and | ||||||
14 | the Simplified Municipal Telecommunications Tax Act that | ||||||
15 | exceed
$1,000 shall
make all payments by electronic funds | ||||||
16 | transfer as required by rules of the
Department and shall file | ||||||
17 | the return required by this Section by electronic
means as | ||||||
18 | required by rules of the Department.
| ||||||
19 | If the retailer's average monthly tax billings due to the | ||||||
20 | Department under
this Act and the Simplified Municipal | ||||||
21 | Telecommunications Tax Act do
not exceed $1,000, the Department | ||||||
22 | may authorize his returns to be
filed on a
quarter annual | ||||||
23 | basis, with the return for January, February and March of a
| ||||||
24 | given year being due by April 30 of such year; with the return | ||||||
25 | for
April,
May and June of a given year being due by July 31st | ||||||
26 | of such year;
with
the
return for July, August and September of |
| |||||||
| |||||||
1 | a given year being due by October
31st of such year; and with | ||||||
2 | the return of October, November and
December of a
given year | ||||||
3 | being due by January 31st of the following year.
| ||||||
4 | If the retailer is otherwise required to file a monthly or | ||||||
5 | quarterly return
and if the retailer's average monthly tax | ||||||
6 | billings due to the Department
under this Act and the | ||||||
7 | Simplified Municipal Telecommunications Tax Act do
not
exceed | ||||||
8 | $400, the Department may authorize his or her return to be
| ||||||
9 | filed on an annual basis, with the return for a given year | ||||||
10 | being due by January
31st of the following year.
| ||||||
11 | Notwithstanding any other provision of this Article | ||||||
12 | containing the time
within which a retailer may file his | ||||||
13 | return, in the case of any retailer
who ceases to engage in a | ||||||
14 | kind of business which makes him responsible for
filing returns | ||||||
15 | under this Article, such retailer shall file a final return
| ||||||
16 | under this Article with the Department not more than one month | ||||||
17 | after
discontinuing such business.
| ||||||
18 | In making such return, the retailer shall determine the | ||||||
19 | value of any
consideration other than money received by him and | ||||||
20 | he shall include such
value in his return. Such determination | ||||||
21 | shall be subject to review and
revision by the Department in | ||||||
22 | the manner hereinafter provided for the
correction of returns.
| ||||||
23 | Each retailer whose average monthly liability to the | ||||||
24 | Department under
this Article and the Simplified Municipal | ||||||
25 | Telecommunications Tax Act was
$25,000 or more during the | ||||||
26 | preceding calendar year, excluding
the month of highest |
| |||||||
| |||||||
1 | liability and the month of lowest liability in such
calendar | ||||||
2 | year, and who is not operated by a unit of local government,
| ||||||
3 | shall make estimated payments to the Department on or before | ||||||
4 | the 7th, 15th,
22nd and last day of the month during which tax | ||||||
5 | collection liability to the
Department is incurred in an amount | ||||||
6 | not less than the lower of either 22.5%
of the retailer's | ||||||
7 | actual tax collections for the month or 25% of the
retailer's | ||||||
8 | actual tax collections for the same calendar month of the
| ||||||
9 | preceding year. The amount of such quarter monthly payments | ||||||
10 | shall be
credited against the final liability of the retailer's | ||||||
11 | return for that
month. Any outstanding credit, approved by the | ||||||
12 | Department, arising from
the retailer's overpayment of its | ||||||
13 | final liability for any month may be
applied to reduce the | ||||||
14 | amount of any subsequent quarter monthly payment or
credited | ||||||
15 | against the final liability of the retailer's return for any
| ||||||
16 | subsequent month. If any quarter monthly payment is not paid at | ||||||
17 | the time
or in the amount required by this Section, the | ||||||
18 | retailer shall be liable for
penalty and interest on the | ||||||
19 | difference between the minimum amount due as a
payment and the | ||||||
20 | amount of such payment actually and timely paid, except
insofar | ||||||
21 | as the retailer has previously made payments for that month to | ||||||
22 | the
Department in excess of the minimum payments previously | ||||||
23 | due.
| ||||||
24 | The retailer making the return herein provided for shall, | ||||||
25 | at the time of
making such return, pay to the Department the | ||||||
26 | amount of tax herein imposed,
less a discount of 1% which is |
| |||||||
| |||||||
1 | allowed to reimburse the retailer for the
expenses incurred in | ||||||
2 | keeping records, billing the customer, preparing and
filing | ||||||
3 | returns, remitting the tax, and supplying data to the | ||||||
4 | Department upon
request. No discount may be claimed by a | ||||||
5 | retailer on returns not timely filed
and for taxes not timely
| ||||||
6 | remitted.
On and after January 1, 2018, in no event shall the | ||||||
7 | discount allowed to any retailer be more than $1,500 in any | ||||||
8 | calendar year. | ||||||
9 | On and after the effective date of this Article of 1985,
of | ||||||
10 | the moneys received by the Department of Revenue pursuant to | ||||||
11 | this
Article, other than moneys received pursuant to the | ||||||
12 | additional
taxes imposed
by Public Act 90-548: | ||||||
13 | (1) $1,000,000 shall be paid each month into the Common | ||||||
14 | School Fund; | ||||||
15 | (2) beginning on the first day of the first calendar | ||||||
16 | month to occur on or after the effective date of this | ||||||
17 | amendatory Act of the 98th General Assembly, an amount | ||||||
18 | equal to 1/12 of 5% of the cash receipts collected during | ||||||
19 | the preceding fiscal year by the Audit Bureau of the | ||||||
20 | Department from the tax under this Act and the Simplified | ||||||
21 | Municipal Telecommunications Tax Act shall be paid each | ||||||
22 | month into the Tax Compliance and Administration Fund; | ||||||
23 | those moneys shall be used, subject to appropriation, to | ||||||
24 | fund additional auditors and compliance personnel at the | ||||||
25 | Department of Revenue; and | ||||||
26 | (3) the
remainder shall be deposited into the General |
| |||||||
| |||||||
1 | Revenue Fund. | ||||||
2 | On and after February 1, 1998,
however, of
the moneys | ||||||
3 | received by the Department of Revenue pursuant to the | ||||||
4 | additional
taxes imposed
by Public Act 90-548,
one-half shall | ||||||
5 | be deposited
into the School Infrastructure Fund and one-half | ||||||
6 | shall be deposited into the
Common School Fund.
On and after | ||||||
7 | the effective date of this amendatory Act of the 91st General
| ||||||
8 | Assembly, if in any fiscal year the total of the moneys | ||||||
9 | deposited into the
School Infrastructure Fund under this Act is | ||||||
10 | less than the total of the moneys
deposited into that Fund from | ||||||
11 | the additional taxes imposed by Public Act
90-548 during fiscal | ||||||
12 | year 1999, then, as soon as possible after the close of
the | ||||||
13 | fiscal year, the Comptroller shall order transferred
and the | ||||||
14 | Treasurer shall transfer from the General Revenue Fund to the | ||||||
15 | School
Infrastructure Fund an amount equal to the difference | ||||||
16 | between the fiscal year
total
deposits and the
total amount | ||||||
17 | deposited into the Fund in fiscal year 1999.
| ||||||
18 | (Source: P.A. 98-1098, eff. 8-26-14.)
| ||||||
19 | Section 55. The Liquor Control Act of 1934 is amended by | ||||||
20 | changing Section 8-2 as follows:
| ||||||
21 | (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| ||||||
22 | Sec. 8-2. It is the duty of each manufacturer with respect | ||||||
23 | to alcoholic
liquor produced or imported by such manufacturer, | ||||||
24 | or purchased tax-free by
such manufacturer from another |
| |||||||
| |||||||
1 | manufacturer or importing
distributor, and of each importing | ||||||
2 | distributor as to alcoholic liquor
purchased by such importing | ||||||
3 | distributor from foreign importers or from
anyone from any | ||||||
4 | point in the United States outside of this State or
purchased | ||||||
5 | tax-free from another manufacturer or importing
distributor, | ||||||
6 | to pay the tax imposed by Section 8-1 to the
Department of | ||||||
7 | Revenue on or before the 15th day of the calendar month
| ||||||
8 | following the calendar month in which such alcoholic liquor is | ||||||
9 | sold or used
by such manufacturer or by such importing | ||||||
10 | distributor other than in an
authorized tax-free manner or to | ||||||
11 | pay that tax electronically as provided in
this Section.
| ||||||
12 | Each manufacturer and each importing distributor shall
| ||||||
13 | make payment under one of the following methods: (1) on or | ||||||
14 | before the
15th day of each calendar month, file in person or | ||||||
15 | by United States
first-class
mail, postage pre-paid,
with the | ||||||
16 | Department of Revenue, on
forms prescribed and furnished by the | ||||||
17 | Department, a report in writing in
such form as may be required | ||||||
18 | by the Department in order to compute, and
assure the accuracy | ||||||
19 | of, the tax due on all taxable sales and uses of
alcoholic | ||||||
20 | liquor occurring during the preceding month. Payment of the tax
| ||||||
21 | in the amount disclosed by the report shall accompany the | ||||||
22 | report or, (2) on
or
before the 15th day of each calendar | ||||||
23 | month, electronically file with the
Department of Revenue, on | ||||||
24 | forms prescribed and furnished by the Department, an
electronic | ||||||
25 | report in such form as may be required by the Department in | ||||||
26 | order to
compute,
and assure the accuracy of, the tax due on |
| |||||||
| |||||||
1 | all taxable sales and uses of
alcoholic liquor
occurring during | ||||||
2 | the preceding month. An electronic payment of the tax in the
| ||||||
3 | amount
disclosed by the report shall accompany the report. A | ||||||
4 | manufacturer or
distributor who
files an electronic report and | ||||||
5 | electronically pays the tax imposed pursuant to
Section 8-1
to | ||||||
6 | the Department of Revenue on or before the 15th day of the | ||||||
7 | calendar month
following
the calendar month in which such | ||||||
8 | alcoholic liquor is sold or used by that
manufacturer or
| ||||||
9 | importing distributor other than in an authorized tax-free | ||||||
10 | manner shall pay to
the
Department the amount of the tax | ||||||
11 | imposed pursuant to Section 8-1, less a
discount
which is | ||||||
12 | allowed to reimburse the manufacturer or importing distributor
| ||||||
13 | for the
expenses incurred in keeping and maintaining records, | ||||||
14 | preparing and filing the
electronic
returns, remitting the tax, | ||||||
15 | and supplying data to the Department upon
request.
| ||||||
16 | The discount shall be in an amount as follows:
| ||||||
17 | (1) For original returns due on or after January 1, | ||||||
18 | 2003 through
September 30, 2003, the discount shall be | ||||||
19 | 1.75% or $1,250 per return, whichever
is less;
| ||||||
20 | (2) For original returns due on or after October 1, | ||||||
21 | 2003 through September
30, 2004, the discount shall be 2% | ||||||
22 | or $3,000 per return, whichever is less; and
| ||||||
23 | (3) For original returns due on or after October 1, | ||||||
24 | 2004 through December 31, 2017 , the discount
shall
be 2% or | ||||||
25 | $2,000 per return, whichever is less ; and .
| ||||||
26 | (4) For original returns due on and after January 1, |
| |||||||
| |||||||
1 | 2018, the sum of (i) 1.75% of the first $1,000 collected | ||||||
2 | during the calendar year and (ii) 1% of the amount of | ||||||
3 | proceeds collected during the calendar year that exceeds | ||||||
4 | $1,000; however, on and after January 1, 2018, in no event | ||||||
5 | shall the discount allowed to any manufacturer or | ||||||
6 | distributor be more than $1,500 in any calendar year. | ||||||
7 | The Department may, if it deems it necessary in order to | ||||||
8 | insure the
payment of the tax imposed by this Article, require | ||||||
9 | returns to be made
more frequently than and covering periods of | ||||||
10 | less than a month. Such return
shall contain such further | ||||||
11 | information as the Department may reasonably
require.
| ||||||
12 | It shall be presumed that all alcoholic liquors acquired or | ||||||
13 | made by any
importing distributor or manufacturer have been | ||||||
14 | sold or used by him in this
State and are the basis for the tax | ||||||
15 | imposed by this Article unless proven,
to the satisfaction of | ||||||
16 | the Department, that such alcoholic liquors are (1)
still in | ||||||
17 | the possession of such importing distributor or manufacturer, | ||||||
18 | or
(2) prior to the termination of possession have been lost by | ||||||
19 | theft or
through unintentional destruction, or (3) that such | ||||||
20 | alcoholic liquors are
otherwise exempt from taxation under this | ||||||
21 | Act.
| ||||||
22 | The Department may require any foreign importer to file | ||||||
23 | monthly
information returns, by the 15th day of the month | ||||||
24 | following the month which
any such return covers, if the | ||||||
25 | Department determines this to be necessary
to the proper | ||||||
26 | performance of the Department's functions and duties under
this |
| |||||||
| |||||||
1 | Act. Such return shall contain such information as the | ||||||
2 | Department may
reasonably require.
| ||||||
3 | Every manufacturer and importing distributor shall also | ||||||
4 | file, with the
Department, a bond in an amount not less than | ||||||
5 | $1,000 and not to exceed
$100,000 on a form to be approved by, | ||||||
6 | and with a surety or sureties
satisfactory to, the Department. | ||||||
7 | Such bond shall be conditioned upon the
manufacturer or | ||||||
8 | importing distributor paying to the Department all monies
| ||||||
9 | becoming due from such manufacturer or importing distributor | ||||||
10 | under this
Article. The Department shall fix the penalty of | ||||||
11 | such bond in each case,
taking into consideration the amount of | ||||||
12 | alcoholic liquor expected to be
sold and used by such | ||||||
13 | manufacturer or importing distributor, and the
penalty fixed by | ||||||
14 | the Department shall be sufficient, in the Department's
| ||||||
15 | opinion, to protect the State of Illinois against failure to | ||||||
16 | pay any amount
due under this Article, but the amount of the | ||||||
17 | penalty fixed by the
Department shall not exceed twice the | ||||||
18 | amount of tax liability of a monthly
return, nor shall the | ||||||
19 | amount of such penalty be less than $1,000. The
Department | ||||||
20 | shall notify the Commission of the Department's approval or
| ||||||
21 | disapproval of any such manufacturer's or importing | ||||||
22 | distributor's bond, or
of the termination or cancellation of | ||||||
23 | any such bond, or of the Department's
direction to a | ||||||
24 | manufacturer or importing distributor that he must file
| ||||||
25 | additional bond in order to comply with this Section. The | ||||||
26 | Commission shall
not issue a license to any applicant for a |
| |||||||
| |||||||
1 | manufacturer's or importing
distributor's license unless the | ||||||
2 | Commission has received a notification
from the Department | ||||||
3 | showing that such applicant has filed a satisfactory
bond with | ||||||
4 | the Department hereunder and that such bond has been approved | ||||||
5 | by
the Department. Failure by any licensed manufacturer or | ||||||
6 | importing
distributor to keep a satisfactory bond in effect | ||||||
7 | with the Department or to
furnish additional bond to the | ||||||
8 | Department, when required hereunder by the
Department to do so, | ||||||
9 | shall be grounds for the revocation or suspension of
such | ||||||
10 | manufacturer's or importing distributor's license by the | ||||||
11 | Commission.
If a manufacturer or importing distributor fails to | ||||||
12 | pay any amount due
under this Article, his bond with the | ||||||
13 | Department shall be deemed forfeited,
and the Department may | ||||||
14 | institute a suit in its own name on such bond.
| ||||||
15 | After notice and opportunity for a hearing the State | ||||||
16 | Commission may
revoke or suspend the license of any | ||||||
17 | manufacturer or importing distributor
who fails to comply with | ||||||
18 | the provisions of this Section. Notice of such
hearing and the | ||||||
19 | time and place thereof shall be in writing and shall
contain a | ||||||
20 | statement of the charges against the licensee. Such notice may | ||||||
21 | be
given by United States registered or certified mail with | ||||||
22 | return receipt
requested, addressed to the person concerned at | ||||||
23 | his last known address and
shall be given not less than 7 days | ||||||
24 | prior to the date fixed for the
hearing. An order revoking or | ||||||
25 | suspending a license under the provisions of
this Section may | ||||||
26 | be reviewed in the manner provided in Section 7-10
of this Act. |
| |||||||
| |||||||
1 | No new license shall be granted to a person
whose license has | ||||||
2 | been revoked for a violation of this Section or, in case
of | ||||||
3 | suspension, shall such suspension be terminated until he has | ||||||
4 | paid to the
Department all taxes and penalties which he owes | ||||||
5 | the State under the
provisions of this Act.
| ||||||
6 | Every manufacturer or importing distributor who has, as | ||||||
7 | verified by
the Department, continuously complied with the | ||||||
8 | conditions of the bond under
this Act for a period of 2 years | ||||||
9 | shall be considered to be a prior
continuous compliance | ||||||
10 | taxpayer. In determining the consecutive period of
time for | ||||||
11 | qualification as a prior continuous compliance taxpayer, any
| ||||||
12 | consecutive period of time of qualifying compliance | ||||||
13 | immediately prior to
the effective date of this amendatory Act | ||||||
14 | of 1987 shall be credited to any
manufacturer or importing | ||||||
15 | distributor.
| ||||||
16 | A manufacturer or importing distributor that is a prior | ||||||
17 | continuous compliance taxpayer under this Section and becomes a | ||||||
18 | successor as the result of an acquisition, merger, or | ||||||
19 | consolidation of a manufacturer or importing distributor shall | ||||||
20 | be deemed to be a prior continuous compliance taxpayer with | ||||||
21 | respect to the acquired, merged, or consolidated entity.
| ||||||
22 | Every prior continuous compliance taxpayer shall be exempt | ||||||
23 | from the bond
requirements of this Act until the Department has | ||||||
24 | determined the taxpayer
to be delinquent in the filing of any | ||||||
25 | return or deficient in the payment of
any tax under this Act. | ||||||
26 | Any taxpayer who fails to pay an admitted or
established |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | liability under this Act may also be required to post bond or
| |||||||||||||||||||||||||
2 | other acceptable security with the Department guaranteeing the | |||||||||||||||||||||||||
3 | payment of
such admitted or established liability.
| |||||||||||||||||||||||||
4 | The Department shall discharge any surety and shall release | |||||||||||||||||||||||||
5 | and return
any bond or security deposit assigned, pledged or | |||||||||||||||||||||||||
6 | otherwise provided to it
by a taxpayer under this Section | |||||||||||||||||||||||||
7 | within 30 days after: (1) such taxpayer
becomes a prior | |||||||||||||||||||||||||
8 | continuous compliance taxpayer; or (2) such taxpayer has
ceased | |||||||||||||||||||||||||
9 | to collect receipts on which he is required to remit tax to the
| |||||||||||||||||||||||||
10 | Department, has filed a final tax return, and has paid to the | |||||||||||||||||||||||||
11 | Department an
amount sufficient to discharge his remaining tax | |||||||||||||||||||||||||
12 | liability as determined by
the Department under this Act.
| |||||||||||||||||||||||||
13 | (Source: P.A. 95-769, eff. 7-29-08.)
| |||||||||||||||||||||||||
14 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
15 | becoming law.
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