Bill Text: IL HB5563 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Retailers' Occupation Tax Act. In provisions concerning certificates of registration, removes a requirement that publicly traded corporations must provide the last 4 digits of the social security numbers of their Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB5563 Detail]
Download: Illinois-2015-HB5563-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 Retailers' Occupation Tax Act is amended by | |||||||||||||||||||
5 | changing Section 2a as follows:
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6 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | |||||||||||||||||||
7 | Sec. 2a. It is unlawful for any person to engage in the | |||||||||||||||||||
8 | business of
selling tangible personal property at retail in | |||||||||||||||||||
9 | this State without a
certificate of registration from the | |||||||||||||||||||
10 | Department. Application
for a certificate of registration | |||||||||||||||||||
11 | shall be made to the Department upon
forms furnished by it. | |||||||||||||||||||
12 | Each such application shall be signed and verified
and shall | |||||||||||||||||||
13 | state: (1) the name and social security number of the
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14 | applicant; (2) the address of his principal place
of business; | |||||||||||||||||||
15 | (3) the address of the principal place of business from which
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16 | he engages in the business of selling tangible personal | |||||||||||||||||||
17 | property at retail
in this State and the addresses of all other | |||||||||||||||||||
18 | places of business, if any
(enumerating such addresses, if any, | |||||||||||||||||||
19 | in a separate list attached to and
made a part of the | |||||||||||||||||||
20 | application), from which he engages in the business of
selling | |||||||||||||||||||
21 | tangible personal property at retail in this State; (4)
the
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22 | name and address of the person or persons who will be | |||||||||||||||||||
23 | responsible for
filing returns and payment of taxes due under |
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1 | this Act; (5) in the case of a publicly traded corporation, the | ||||||
2 | name and title of the Chief Financial Officer, Chief Operating | ||||||
3 | Officer, and any other officer or employee with responsibility | ||||||
4 | for preparing tax returns under this Act, along with the last 4 | ||||||
5 | digits of each of their social security numbers, and, in the
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6 | case of
all other corporations, the name, title, and social | ||||||
7 | security number of
each corporate officer; (6) in the case of a | ||||||
8 | limited liability
company, the
name, social security number, | ||||||
9 | and FEIN number of
each
manager and member; and (7) such other | ||||||
10 | information
as the Department may reasonably require. The | ||||||
11 | application shall contain
an acceptance of responsibility | ||||||
12 | signed by the person or persons who will be
responsible for | ||||||
13 | filing returns and payment of the taxes due under this
Act. If | ||||||
14 | the applicant will sell tangible personal property at retail
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15 | through vending machines, his application to register shall | ||||||
16 | indicate the
number of vending machines to be so operated. If | ||||||
17 | requested by the Department at any time, that person shall | ||||||
18 | verify the total number of vending machines he or she uses in | ||||||
19 | his or her business of selling tangible personal property at | ||||||
20 | retail. | ||||||
21 | The Department may deny a certificate of registration to | ||||||
22 | any applicant
if a person who is named as the owner, a partner, | ||||||
23 | a manager or member of a limited liability
company, or a | ||||||
24 | corporate officer of the applicant on the application for the | ||||||
25 | certificate of registration is or
has been named as the owner, | ||||||
26 | a partner, a manager or member of a limited
liability company, |
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1 | or a corporate officer on the application for the certificate | ||||||
2 | of registration of another retailer
that is in default for | ||||||
3 | moneys due under this Act or any other tax or fee Act | ||||||
4 | administered by the Department. For purposes of this paragraph | ||||||
5 | only, in determining whether a person is in default for moneys | ||||||
6 | due, the Department shall include only amounts established as a | ||||||
7 | final liability within the 20 years prior to the date of the | ||||||
8 | Department's notice of denial of a certificate of registration. | ||||||
9 | The Department may require an applicant for a certificate | ||||||
10 | of registration hereunder to, at
the time of filing such | ||||||
11 | application, furnish a bond from a surety company
authorized to | ||||||
12 | do business in the State of Illinois, or an irrevocable
bank | ||||||
13 | letter of credit or a bond signed by 2
personal sureties who | ||||||
14 | have filed, with the Department, sworn statements
disclosing | ||||||
15 | net assets equal to at least 3 times the amount of the bond to
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16 | be required of such applicant, or a bond secured by an | ||||||
17 | assignment of a bank
account or certificate of deposit, stocks | ||||||
18 | or bonds, conditioned upon the
applicant paying to the State of | ||||||
19 | Illinois all moneys becoming due under
this Act and under any | ||||||
20 | other State tax law or municipal or county tax
ordinance or | ||||||
21 | resolution under which the certificate of registration that is
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22 | issued to the applicant under this Act will permit the | ||||||
23 | applicant to engage
in business without registering separately | ||||||
24 | under such other law, ordinance
or resolution. In making a | ||||||
25 | determination as to whether to require a bond or other | ||||||
26 | security, the Department shall take into consideration whether |
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1 | the owner, any partner, any manager or member of a limited | ||||||
2 | liability company, or a corporate officer of the applicant is | ||||||
3 | or has been the owner, a partner, a manager or member of a | ||||||
4 | limited liability company, or a corporate officer of another | ||||||
5 | retailer that is in default for moneys due under this Act or | ||||||
6 | any other tax or fee Act administered by the Department; and | ||||||
7 | whether the owner, any partner, any manager or member of a | ||||||
8 | limited liability company, or a corporate officer of the | ||||||
9 | applicant is or has been the owner, a partner, a manager or | ||||||
10 | member of a limited liability company, or a corporate officer | ||||||
11 | of another retailer whose certificate of registration has been | ||||||
12 | revoked within the previous 5 years under this Act or any other | ||||||
13 | tax or fee Act administered by the Department. If a bond or | ||||||
14 | other security is required, the Department shall fix the amount | ||||||
15 | of the bond or other security, taking into consideration the | ||||||
16 | amount of money expected to become due from the applicant under | ||||||
17 | this Act and under any other State tax law or municipal or | ||||||
18 | county tax ordinance or resolution under which the certificate | ||||||
19 | of registration that is issued to the applicant under this Act | ||||||
20 | will permit the applicant to engage in business without | ||||||
21 | registering separately under such other law, ordinance, or | ||||||
22 | resolution. The amount of security required by
the Department | ||||||
23 | shall be such as, in its opinion, will protect the State of
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24 | Illinois against failure to pay the amount which may become due | ||||||
25 | from the
applicant under this Act and under any other State tax | ||||||
26 | law or municipal or
county tax ordinance or resolution under |
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1 | which the certificate of
registration that is issued to the | ||||||
2 | applicant under this Act will permit the
applicant to engage in | ||||||
3 | business without registering separately under such
other law, | ||||||
4 | ordinance or resolution, but the amount of the security | ||||||
5 | required
by the Department shall not exceed three times the | ||||||
6 | amount of the
applicant's average monthly tax liability, or | ||||||
7 | $50,000.00, whichever amount
is lower. | ||||||
8 | No certificate of registration under this Act shall be | ||||||
9 | issued by the
Department until the applicant provides the | ||||||
10 | Department with satisfactory
security, if required, as herein | ||||||
11 | provided for. | ||||||
12 | Upon receipt of the application for certificate of | ||||||
13 | registration in
proper form, and upon approval by the | ||||||
14 | Department of the security furnished
by the applicant, if | ||||||
15 | required, the Department shall issue to such applicant a
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16 | certificate of registration which shall permit the person to | ||||||
17 | whom it is
issued to engage in the business of selling tangible | ||||||
18 | personal property at
retail in this State. The certificate of | ||||||
19 | registration shall be
conspicuously displayed at the place of | ||||||
20 | business which the person so
registered states in his | ||||||
21 | application to be the principal place of business
from which he | ||||||
22 | engages in the business of selling tangible personal property
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23 | at retail in this State. | ||||||
24 | No certificate of registration issued to a taxpayer who | ||||||
25 | files returns
required by this Act on a monthly basis shall be | ||||||
26 | valid after the expiration
of 5 years from the date of its |
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1 | issuance or last renewal. The expiration
date of a | ||||||
2 | sub-certificate of registration shall be that of the | ||||||
3 | certificate
of registration to which the sub-certificate | ||||||
4 | relates. A certificate of
registration shall automatically be | ||||||
5 | renewed, subject to revocation as
provided by this Act, for an | ||||||
6 | additional 5 years from the date of its
expiration unless | ||||||
7 | otherwise notified by the Department as provided by this
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8 | paragraph. Where a taxpayer to whom a certificate of | ||||||
9 | registration is
issued under this Act is in default to the | ||||||
10 | State of Illinois for delinquent
returns or for moneys due
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11 | under this Act or any other State tax law or municipal or | ||||||
12 | county ordinance
administered or enforced by the Department, | ||||||
13 | the Department shall, not less
than 60 days before the | ||||||
14 | expiration date of such certificate of
registration, give | ||||||
15 | notice to the taxpayer to whom the certificate was
issued of | ||||||
16 | the account period of the delinquent returns, the amount of
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17 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
18 | that the certificate of registration shall not be
automatically | ||||||
19 | renewed upon its expiration date unless the taxpayer, on or
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20 | before the date of expiration, has filed and paid the | ||||||
21 | delinquent returns or
paid the defaulted amount in full. A
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22 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
23 | applicant for
renewal. The Department shall promulgate | ||||||
24 | regulations establishing
procedures for taxpayers who file | ||||||
25 | returns on a monthly basis but desire and
qualify to change to | ||||||
26 | a quarterly or yearly filing basis and will no longer
be |
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1 | subject to renewal under this Section, and for taxpayers who | ||||||
2 | file
returns on a yearly or quarterly basis but who desire or | ||||||
3 | are required to
change to a monthly filing basis and will be | ||||||
4 | subject to renewal under
this Section. | ||||||
5 | The Department may in its discretion approve renewal by an | ||||||
6 | applicant
who is in default if, at the time of application for | ||||||
7 | renewal, the applicant
files all of the delinquent returns or | ||||||
8 | pays to the Department such
percentage of the defaulted amount | ||||||
9 | as may be
determined by the Department and agrees in writing to | ||||||
10 | waive all limitations
upon the Department for collection of the | ||||||
11 | remaining defaulted amount to the
Department over a period not | ||||||
12 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
13 | however, no renewal application submitted by an applicant
who | ||||||
14 | is in default shall be approved if the immediately preceding | ||||||
15 | renewal by
the applicant was conditioned upon the installment | ||||||
16 | payment
agreement described in this Section. The payment | ||||||
17 | agreement herein provided
for shall be in addition to and not | ||||||
18 | in lieu of the security that may be required by
this Section of | ||||||
19 | a taxpayer who is no longer considered a prior continuous
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20 | compliance taxpayer. The execution of the payment agreement as | ||||||
21 | provided in
this Act shall not toll the accrual of interest at | ||||||
22 | the statutory rate. | ||||||
23 | The Department may suspend a certificate of registration if | ||||||
24 | the Department finds that the person to whom the certificate of | ||||||
25 | registration has been issued knowingly sold contraband | ||||||
26 | cigarettes. |
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1 | A certificate of registration issued under this Act more | ||||||
2 | than 5 years
before the effective date of this amendatory Act | ||||||
3 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
4 | of this Section on the next
anniversary of the date of issuance | ||||||
5 | of such certificate which occurs more
than 6 months after the | ||||||
6 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
7 | registration issued less than 5 years before the effective
date | ||||||
8 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
9 | the
renewal provisions of this Section on the 5th anniversary | ||||||
10 | of the issuance
of the certificate. | ||||||
11 | If the person so registered states that he operates other | ||||||
12 | places of
business from which he engages in the business of | ||||||
13 | selling tangible personal
property at retail in this State, the | ||||||
14 | Department shall furnish him with a
sub-certificate of | ||||||
15 | registration for each such place of business, and the
applicant | ||||||
16 | shall display the appropriate sub-certificate of registration | ||||||
17 | at
each such place of business. All sub-certificates of | ||||||
18 | registration shall
bear the same registration number as that | ||||||
19 | appearing upon the certificate of
registration to which such | ||||||
20 | sub-certificates relate. | ||||||
21 | If the applicant will sell tangible personal property at | ||||||
22 | retail through
vending machines, the Department shall furnish | ||||||
23 | him with a sub-certificate
of registration for each such | ||||||
24 | vending machine, and the applicant shall
display the | ||||||
25 | appropriate sub-certificate of registration on each such
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26 | vending machine by attaching the sub-certificate of |
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1 | registration to a
conspicuous part of such vending machine. If | ||||||
2 | a person who is registered to sell tangible personal property | ||||||
3 | at retail through vending machines adds an additional vending | ||||||
4 | machine or additional vending machines to the number of vending | ||||||
5 | machines he or she uses in his or her business of selling | ||||||
6 | tangible personal property at retail, he or she shall notify | ||||||
7 | the Department, on a form prescribed by the Department, to | ||||||
8 | request an additional sub-certificate or additional | ||||||
9 | sub-certificates of registration, as applicable. With each | ||||||
10 | such request, the applicant shall report the number of | ||||||
11 | sub-certificates of registration he or she is requesting as | ||||||
12 | well as the total number of vending machines from which he or | ||||||
13 | she makes retail sales. | ||||||
14 | Where the same person engages in 2 or more businesses of | ||||||
15 | selling
tangible personal property at retail in this State, | ||||||
16 | which businesses are
substantially different in character or | ||||||
17 | engaged in under different trade
names or engaged in under | ||||||
18 | other substantially dissimilar circumstances (so
that it is | ||||||
19 | more practicable, from an accounting, auditing or bookkeeping
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20 | standpoint, for such businesses to be separately registered), | ||||||
21 | the
Department may require or permit such person (subject to | ||||||
22 | the same
requirements concerning the furnishing of security as | ||||||
23 | those that are
provided for hereinbefore in this Section as to | ||||||
24 | each application for a
certificate of registration) to apply | ||||||
25 | for and obtain a separate certificate
of registration for each | ||||||
26 | such business or for any of such businesses, under
a single |
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1 | certificate of registration supplemented by related
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2 | sub-certificates of registration. | ||||||
3 | Any person who is registered under the "Retailers' | ||||||
4 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
5 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
6 | continuous 3-year period part of which passed
immediately | ||||||
7 | before and the remainder of which passes immediately after
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8 | March 8, 1963, has been so registered continuously and who is | ||||||
9 | determined by
the Department not to have been either delinquent | ||||||
10 | or deficient in the
payment of tax liability during that period | ||||||
11 | under this Act or under any
other State tax law or municipal or | ||||||
12 | county tax ordinance or resolution
under which the certificate | ||||||
13 | of registration that is issued to the
registrant under this Act | ||||||
14 | will permit the registrant to engage in business
without | ||||||
15 | registering separately under such other law, ordinance or
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16 | resolution, shall be considered to be a Prior Continuous | ||||||
17 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
18 | the Department,
faithfully and continuously complied with the | ||||||
19 | condition of his bond or
other security under the provisions of | ||||||
20 | this Act for a period of 3
consecutive years shall be | ||||||
21 | considered to be a Prior Continuous Compliance
taxpayer. | ||||||
22 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
23 | from all
requirements under this Act concerning the furnishing | ||||||
24 | of a bond or other security as a
condition precedent to his | ||||||
25 | being authorized to engage in the business of
selling tangible | ||||||
26 | personal property at retail in this State. This exemption
shall |
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1 | continue for each such taxpayer until such time as he may be
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2 | determined by the Department to be delinquent in the filing of | ||||||
3 | any returns,
or is determined by the Department (either through | ||||||
4 | the Department's
issuance of a final assessment which has | ||||||
5 | become final under the Act, or by
the taxpayer's filing of a | ||||||
6 | return which admits tax that is not paid to be
due) to be | ||||||
7 | delinquent or deficient in the paying of any tax under this Act
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8 | or under any other State tax law or municipal or county tax | ||||||
9 | ordinance or
resolution under which the certificate of | ||||||
10 | registration that is issued to
the registrant under this Act | ||||||
11 | will permit the registrant to engage in
business without | ||||||
12 | registering separately under such other law, ordinance or
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13 | resolution, at which time that taxpayer shall become subject to | ||||||
14 | all the
financial responsibility requirements of this Act and, | ||||||
15 | as a condition of
being allowed to continue to engage in the | ||||||
16 | business of selling tangible
personal property at retail, may | ||||||
17 | be required to post bond or other
acceptable security with the | ||||||
18 | Department covering liability which such
taxpayer may | ||||||
19 | thereafter incur. Any taxpayer who fails to pay an admitted or
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20 | established liability under this Act may also be required to | ||||||
21 | post bond or
other acceptable security with this Department | ||||||
22 | guaranteeing the payment of
such admitted or established | ||||||
23 | liability. | ||||||
24 | No certificate of registration shall be issued to any | ||||||
25 | person who is in
default to the State of Illinois for moneys | ||||||
26 | due under this Act or under any
other State tax law or |
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1 | municipal or county tax ordinance or resolution
under which the | ||||||
2 | certificate of registration that is issued to the applicant
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3 | under this Act will permit the applicant to engage in business | ||||||
4 | without
registering separately under such other law, ordinance | ||||||
5 | or resolution. | ||||||
6 | Any person aggrieved by any decision of the Department | ||||||
7 | under this
Section may, within 20 days after notice of such | ||||||
8 | decision, protest and
request a hearing, whereupon the | ||||||
9 | Department shall give notice to such
person of the time and | ||||||
10 | place fixed for such hearing and shall hold a
hearing in | ||||||
11 | conformity with the provisions of this Act and then issue its
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12 | final administrative decision in the matter to such person. In | ||||||
13 | the absence
of such a protest within 20 days, the Department's | ||||||
14 | decision shall become
final without any further determination | ||||||
15 | being made or notice given. | ||||||
16 | With respect to security other than bonds (upon which the | ||||||
17 | Department may
sue in the event of a forfeiture), if the | ||||||
18 | taxpayer fails to pay, when due,
any amount whose payment such | ||||||
19 | security guarantees, the Department shall,
after such | ||||||
20 | liability is admitted by the taxpayer or established by the
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21 | Department through the issuance of a final assessment that has | ||||||
22 | become final
under the law, convert the security which that | ||||||
23 | taxpayer has furnished into
money for the State, after first | ||||||
24 | giving the taxpayer at least 10 days'
written notice, by | ||||||
25 | registered or certified mail, to pay the liability or
forfeit | ||||||
26 | such security to the Department. If the security consists of |
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1 | stocks
or bonds or other securities which are listed on a | ||||||
2 | public exchange, the
Department shall sell such securities | ||||||
3 | through such public exchange. If
the security consists of an | ||||||
4 | irrevocable bank letter of credit, the
Department shall convert | ||||||
5 | the security in the manner provided for in the
Uniform | ||||||
6 | Commercial Code. If the security consists of a bank certificate | ||||||
7 | of
deposit, the Department shall convert the security into | ||||||
8 | money by demanding
and collecting the amount of such bank | ||||||
9 | certificate of deposit from the bank
which issued such | ||||||
10 | certificate. If the security consists of a type of stocks
or | ||||||
11 | other securities which are not listed on a public exchange, the
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12 | Department shall sell such security to the highest and best | ||||||
13 | bidder after
giving at least 10 days' notice of the date, time | ||||||
14 | and place of the intended
sale by publication in the "State | ||||||
15 | Official Newspaper". If the Department
realizes more than the | ||||||
16 | amount of such liability from the security, plus the
expenses | ||||||
17 | incurred by the Department in converting the security into | ||||||
18 | money,
the Department shall pay such excess to the taxpayer who | ||||||
19 | furnished such
security, and the balance shall be paid into the | ||||||
20 | State Treasury. | ||||||
21 | The Department shall discharge any surety and shall release | ||||||
22 | and return
any security deposited, assigned, pledged or | ||||||
23 | otherwise provided to it by
a taxpayer under this Section | ||||||
24 | within 30 days after: | ||||||
25 | (1) such taxpayer becomes a Prior Continuous | ||||||
26 | Compliance taxpayer; or |
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1 | (2) such taxpayer has ceased to collect receipts on | ||||||
2 | which he is required
to remit tax to the Department, has | ||||||
3 | filed a final tax return, and has paid
to the Department an | ||||||
4 | amount sufficient to discharge his remaining tax
| ||||||
5 | liability, as determined by the Department, under this Act | ||||||
6 | and under every
other State tax law or municipal or county | ||||||
7 | tax ordinance or resolution
under which the certificate of | ||||||
8 | registration issued under this Act permits
the registrant | ||||||
9 | to engage in business without registering separately under
| ||||||
10 | such other law, ordinance or resolution. The Department | ||||||
11 | shall make a final
determination of the taxpayer's | ||||||
12 | outstanding tax liability as expeditiously
as possible | ||||||
13 | after his final tax return has been filed; if the | ||||||
14 | Department
cannot make such final determination within 45 | ||||||
15 | days after receiving the
final tax return, within such | ||||||
16 | period it shall so notify the taxpayer,
stating its reasons | ||||||
17 | therefor. | ||||||
18 | (Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583, | ||||||
19 | eff. 1-1-14; 98-756, eff. 7-16-14; 98-974, eff. 1-1-15 .)
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