Bill Text: IL SB0009 | 2017-2018 | 100th General Assembly | Enrolled
Bill Title: Creates the Sugar-Sweetened Beverage Tax Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the General Revenue Fund. Amends the Illinois Income Tax Act. Makes changes concerning the rate of tax. Extends the research and development credit for tax years ending prior to January 1, 2027. Creates an addition modification in an amount equal to the deduction for qualified domestic production activities allowed under Section 199 of the Internal Revenue Code. Makes changes concerning the definition of "unitary business group". Makes changes concerning estimated taxes. Amends the Film Production Services Tax Credit Act of 2008. Provides that no taxpayer may take a credit awarded under the Act for tax years beginning on or after January 1, 2027. Amends the Business Corporation Act of 1983. Makes changes concerning penalties and reports. Amends the Limited Liability Company Act. Makes changes concerning the fee for filing articles of organization. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, and 13 of the 100th General Assembly become law.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2017-07-06 - Public Act . . . . . . . . . 100-0022 [SB0009 Detail]
Download: Illinois-2017-SB0009-Enrolled.html
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1 | AN ACT concerning revenue.
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2 | WHEREAS, the changes made by this Act are made under | ||||||
3 | subsection (a) of Section 3 of Article IX of the Illinois | ||||||
4 | Constitution. If there are future changes made to subsection | ||||||
5 | (a) of Section 3 of Article IX of the Illinois Constitution, | ||||||
6 | then it may result in evaluating the taxes on income imposed by | ||||||
7 | this Act; therefore
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8 | Be it enacted by the People of the State of Illinois,
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9 | represented in the General Assembly:
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10 | ARTICLE 1. STATE TAX LIEN REGISTRATION ACT | ||||||
11 | Section 1-1. Short title. This Act may be cited as the | ||||||
12 | State Tax Lien Registration Act. References in this Article to | ||||||
13 | "this Act" mean this Article.
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14 | Section 1-5. Purpose. | ||||||
15 | (a) The purpose of this Act is to provide a uniform | ||||||
16 | statewide system for filing notices of tax liens that are in | ||||||
17 | favor of or enforced by the Department. The Department shall | ||||||
18 | maintain the system. | ||||||
19 | (b) The scope of this Act is limited to tax liens in real | ||||||
20 | property and personal property, tangible and intangible, of | ||||||
21 | taxpayers or other persons against whom the Department has |
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1 | liens pursuant to law for unpaid final tax liabilities | ||||||
2 | administered by the Department. | ||||||
3 | (c) Nothing in this Act shall be construed to invalidate | ||||||
4 | any lien filed by the Department with a county recorder of | ||||||
5 | deeds prior to the effective date of this Act.
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6 | Section 1-10. Definitions. | ||||||
7 | "Debtor" means a taxpayer or other person against whom | ||||||
8 | there is an unpaid final tax liability collectible by the | ||||||
9 | Department. | ||||||
10 | "Department" means the Department of Revenue. | ||||||
11 | "Final tax liability" means any State tax, fee, penalty, or | ||||||
12 | interest owed by a person to the Department where the | ||||||
13 | assessment of the liability is not subject to any further | ||||||
14 | timely filed administrative or judicial review. | ||||||
15 | "Last-known address of the debtor" means the address of the | ||||||
16 | debtor appearing in the records of the Department at the time | ||||||
17 | the notice of tax lien is filed in the registry. | ||||||
18 | "Person" means any natural individual, firm, partnership, | ||||||
19 | association, joint stock company, joint adventure, public or | ||||||
20 | private corporation, limited liability company, or a receiver, | ||||||
21 | executor, trustee, guardian or other representative appointed | ||||||
22 | by order of any court. | ||||||
23 | "Registry" or "State Tax Lien Registry" means the public | ||||||
24 | database maintained by the Department wherein tax liens are | ||||||
25 | filed in favor of and enforced by the Department.
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1 | Section 1-15. Registry established. | ||||||
2 | (a) The Department shall establish and maintain a public | ||||||
3 | database known as the State Tax Lien Registry. If any person | ||||||
4 | neglects or refuses to pay any final tax liability, the | ||||||
5 | Department may file in the registry a notice of tax lien within | ||||||
6 | 3 years from the date of the final tax liability. | ||||||
7 | (b) The notice of tax lien file shall include: | ||||||
8 | (1) the name and last-known address of the debtor; | ||||||
9 | (2) the name and address of the Department; | ||||||
10 | (3) the tax lien number assigned to the lien by the | ||||||
11 | Department; and | ||||||
12 | (4) the basis for the tax lien, including, but not | ||||||
13 | limited to, the amount owed by the debtor as of the date of | ||||||
14 | filing in the tax lien registry.
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15 | Section 1-20. Tax lien perfected. | ||||||
16 | (a) When a notice of tax lien is filed by the Department in | ||||||
17 | the registry, the tax lien is perfected and shall be attached | ||||||
18 | to all of the existing and after-acquired property of the | ||||||
19 | debtor, both real and personal, tangible and intangible, which | ||||||
20 | is located in any and all counties within the State of | ||||||
21 | Illinois. | ||||||
22 | (b) The amount of the tax lien shall be a debt due the | ||||||
23 | State of Illinois and shall remain a lien upon all property and | ||||||
24 | rights to property belonging to the debtor, both real and |
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1 | personal, tangible and intangible, which is located in any and | ||||||
2 | all counties within the State of Illinois. Interest and penalty | ||||||
3 | shall accrue on the tax lien at the same rate and with the same | ||||||
4 | restrictions, if any, as specified by statute for the accrual | ||||||
5 | of interest and penalty for the type of tax or taxes for which | ||||||
6 | the tax lien was issued.
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7 | Section 1-25. Time period of lien. | ||||||
8 | (a) A notice of tax lien shall be a lien upon the debtor's | ||||||
9 | property located anywhere in the State for a period of 20 years | ||||||
10 | from the date of filing unless it is sooner released by the | ||||||
11 | Department. | ||||||
12 | (b) A notice of release of tax lien filed in the registry | ||||||
13 | shall constitute a release of the tax lien within the | ||||||
14 | Department, the registry, and the county in which the tax lien | ||||||
15 | was previously filed. The information contained on the registry | ||||||
16 | shall be controlling, and the registry shall supersede the | ||||||
17 | records of any county.
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18 | Section 1-30. Registry format. | ||||||
19 | (a) The Department shall maintain notices of tax liens | ||||||
20 | filed in the registry after the effective date of this Act in | ||||||
21 | its information management system in a form that permits the | ||||||
22 | information to be readily accessible in an electronic form | ||||||
23 | through the Internet and to be reduced to printed form. The | ||||||
24 | electronic and printed form shall include the following |
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1 | information: | ||||||
2 | (1) the name of the taxpayer; | ||||||
3 | (2) the name and address of the Department; | ||||||
4 | (3) the tax lien number assigned to the lien by the | ||||||
5 | Department; | ||||||
6 | (4) the amount of the taxes, penalties, interest, and | ||||||
7 | fees indicated due on the notice of tax lien received from | ||||||
8 | the Department; and | ||||||
9 | (5) the date and time of filing. | ||||||
10 | (b) Information in the registry shall be searchable by name | ||||||
11 | of debtor or by tax lien number. The Department shall not | ||||||
12 | charge for access to information in the registry. | ||||||
13 | (c) The Department is authorized to sell at bulk the | ||||||
14 | information appearing on the tax lien registry. In selling the | ||||||
15 | information, the Department shall adopt rules governing the | ||||||
16 | process by which the information will be sold and the media or | ||||||
17 | method by which it will be available to the purchaser and shall | ||||||
18 | set a price for the information that will at least cover the | ||||||
19 | cost of producing the information. The proceeds from the sale | ||||||
20 | of bulk information shall be retained by the Department and | ||||||
21 | used to cover its cost to produce the information sold and to | ||||||
22 | maintain the registry. | ||||||
23 | (d) Registry information, whether accessed by name of | ||||||
24 | debtor or by tax lien number at no charge, through a bulk sale | ||||||
25 | of information, or by other means, shall not be used for | ||||||
26 | survey, marketing, or solicitation purposes. Survey, |
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1 | marketing, or solicitation purpose does not include any action | ||||||
2 | by the Department or its authorized agent to collect a debt | ||||||
3 | represented by a tax lien appearing in the registry. The | ||||||
4 | Attorney General may bring an action in any court of competent | ||||||
5 | jurisdiction to enjoin the unlawful use of registry information | ||||||
6 | for survey, marketing, or solicitation purposes and to recover | ||||||
7 | the cost of such action, including reasonable attorney's fees.
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8 | Section 1-35. Rulemaking. The Department may adopt rules in | ||||||
9 | accordance with the Illinois Administrative Procedure Act to | ||||||
10 | enforce the provisions of this Act.
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11 | Section 1-40. Conflicts. In the event of conflict between
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12 | this Act and any other law, this Act shall control.
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13 | ARTICLE 15. REVISED UNIFORM UNCLAIMED PROPERTY ACT | ||||||
14 | ARTICLE 1. GENERAL PROVISIONS | ||||||
15 | Section 15-101. Short title. This Act may be cited as the | ||||||
16 | Revised Uniform Unclaimed Property Act. References in this | ||||||
17 | Article 15 (the Revised Uniform Unclaimed Property Act) to | ||||||
18 | "this Act" mean this Article 15 (the Revised Uniform Unclaimed | ||||||
19 | Property Act).
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20 | Section 15-102. Definitions. In this Act: |
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1 | (1) "Administrator" means the State Treasurer. | ||||||
2 | (2) "Administrator's agent" means a person with which | ||||||
3 | the administrator contracts to conduct an examination | ||||||
4 | under Article 10 on behalf of the administrator. The term | ||||||
5 | includes an independent contractor of the person and each | ||||||
6 | individual participating in the examination on behalf of | ||||||
7 | the person or contractor. | ||||||
8 | (2.5) "Affiliated group of merchants" means 2 or more | ||||||
9 | affiliated merchants or other persons that are related by | ||||||
10 | common ownership or common corporate control and that share | ||||||
11 | the same name, mark, or logo. The term also applies to 2 or | ||||||
12 | more merchants or other persons that agree among | ||||||
13 | themselves, by contract or otherwise, to redeem cards, | ||||||
14 | codes, or other devices bearing the same name, mark, or | ||||||
15 | logo (other than the mark, logo, or brand of a payment | ||||||
16 | network), for the purchase of goods or services solely at | ||||||
17 | such merchants or persons. However, merchants or other | ||||||
18 | persons are not considered to be affiliated merely because | ||||||
19 | they agree to accept a card that bears the mark, logo, or | ||||||
20 | brand of a payment network. | ||||||
21 | (3) "Apparent owner" means a person whose name appears | ||||||
22 | on the records of a holder as the owner of property held, | ||||||
23 | issued, or owing by the holder. | ||||||
24 | (4) "Business association" means a corporation, joint | ||||||
25 | stock company, investment company, unincorporated | ||||||
26 | association, joint venture, limited liability company, |
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1 | business trust, trust company, land bank, safe deposit | ||||||
2 | company, safekeeping depository, financial organization, | ||||||
3 | insurance company, federally chartered entity, utility, | ||||||
4 | sole proprietorship, or other business entity, whether or | ||||||
5 | not for profit. | ||||||
6 | (5) "Confidential information" means information that | ||||||
7 | is "personal information" under the Personal Information | ||||||
8 | Protection Act, "private information" under the Freedom of | ||||||
9 | Information Act or personal information contained within | ||||||
10 | public records, the disclosure of which would constitute a | ||||||
11 | clearly unwarranted invasion of personal privacy, unless | ||||||
12 | the disclosure is consented to in writing by the individual | ||||||
13 | subjects of the information as provided in the Freedom of | ||||||
14 | Information Act. | ||||||
15 | (6) "Domicile" means: | ||||||
16 | (A) for a corporation, the state of its | ||||||
17 | incorporation; | ||||||
18 | (B) for a business association whose formation | ||||||
19 | requires a filing with a state, other than a | ||||||
20 | corporation, the state of its filing; | ||||||
21 | (C) for a federally chartered entity or an | ||||||
22 | investment company registered under the Investment | ||||||
23 | Company Act of 1940, the state of its home office; and | ||||||
24 | (D) for any other holder, the state of its | ||||||
25 | principal place of business. | ||||||
26 | (7) "Electronic" means relating to technology having |
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1 | electrical, digital, magnetic, wireless, optical, | ||||||
2 | electromagnetic, or similar capabilities. | ||||||
3 | (8) "Electronic mail" means a communication by | ||||||
4 | electronic means which is automatically retained and | ||||||
5 | stored and may be readily accessed or retrieved. | ||||||
6 | (9) "Financial organization" means a bank, savings | ||||||
7 | bank, corporate fiduciary, currency exchange, money | ||||||
8 | transmitter, or credit union. | ||||||
9 | (10) "Game-related digital content" means digital | ||||||
10 | content that exists only in an electronic game or | ||||||
11 | electronic-game platform. The term: | ||||||
12 | (A) includes: | ||||||
13 | (i) game-play currency such as a virtual | ||||||
14 | wallet, even if denominated in United States | ||||||
15 | currency; and | ||||||
16 | (ii) the following if for use or redemption | ||||||
17 | only within the game or platform or another | ||||||
18 | electronic game or electronic-game platform: | ||||||
19 | (I) points sometimes referred to as gems, | ||||||
20 | tokens, gold, and similar names; and | ||||||
21 | (II) digital codes; and | ||||||
22 | (B) does not include an item that the issuer: | ||||||
23 | (i) permits to be redeemed for use outside a | ||||||
24 | game or platform for: | ||||||
25 | (I) money; or | ||||||
26 | (II) goods or services that have more than |
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1 | minimal value; or | ||||||
2 | (ii) otherwise monetizes for use outside a | ||||||
3 | game or platform. | ||||||
4 | (11) "Gift card" means: | ||||||
5 | (A) a stored-value card: | ||||||
6 | (i) issued on a prepaid basis in a specified | ||||||
7 | amount; | ||||||
8 | (ii) the value of which does not expire; | ||||||
9 | (iii) that is not subject to a dormancy, | ||||||
10 | inactivity, or service fee; | ||||||
11 | (iv) that may be decreased in value only by | ||||||
12 | redemption for merchandise, goods, or services | ||||||
13 | upon presentation at a single merchant or an | ||||||
14 | affiliated group of merchants; | ||||||
15 | (v) that, unless required by law, may not be | ||||||
16 | redeemed for or converted into money or otherwise | ||||||
17 | monetized by the issuer; and | ||||||
18 | (B) includes a prepaid commercial mobile radio | ||||||
19 | service, as defined in 47 C.F.R. 20.3, as amended. | ||||||
20 | (12) "Holder" means a person obligated to hold for the | ||||||
21 | account of, or to deliver or pay to, the owner, property | ||||||
22 | subject to this Act. | ||||||
23 | (13) "Insurance company" means an association, | ||||||
24 | corporation, or fraternal or mutual-benefit organization, | ||||||
25 | whether or not for profit, engaged in the business of | ||||||
26 | providing life endowments, annuities, or insurance, |
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1 | including accident, burial, casualty, credit-life, | ||||||
2 | contract-performance, dental, disability, fidelity, fire, | ||||||
3 | health, hospitalization, illness, life, malpractice, | ||||||
4 | marine, mortgage, surety, wage-protection, and | ||||||
5 | worker-compensation insurance. | ||||||
6 | (14) "Loyalty card" means a record given without direct | ||||||
7 | monetary consideration under an award, reward, benefit, | ||||||
8 | loyalty, incentive, rebate, or promotional program which | ||||||
9 | may be used or redeemed only to obtain goods or services or | ||||||
10 | a discount on goods or services. The term does not include | ||||||
11 | a record that may be redeemed for money or otherwise | ||||||
12 | monetized by the issuer. | ||||||
13 | (15) "Mineral" means gas, oil, coal, oil shale, other | ||||||
14 | gaseous liquid or solid hydrocarbon, cement material, sand | ||||||
15 | and gravel, road material, building stone, chemical raw | ||||||
16 | material, gemstone, fissionable and nonfissionable ores, | ||||||
17 | colloidal and other clay, steam and other geothermal | ||||||
18 | resources, and any other substance defined as a mineral by | ||||||
19 | law of this State other than this Act. | ||||||
20 | (16) "Mineral proceeds" means an amount payable for | ||||||
21 | extraction, production, or sale of minerals, or, on the | ||||||
22 | abandonment of the amount, an amount that becomes payable | ||||||
23 | after abandonment. The term includes an amount payable: | ||||||
24 | (A) for the acquisition and retention of a mineral | ||||||
25 | lease, including a bonus, royalty, compensatory | ||||||
26 | royalty, shut-in royalty, minimum royalty, and delay |
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1 | rental; | ||||||
2 | (B) for the extraction, production, or sale of | ||||||
3 | minerals, including a net revenue interest, royalty, | ||||||
4 | overriding royalty, extraction payment, and production | ||||||
5 | payment; and | ||||||
6 | (C) under an agreement or option, including a | ||||||
7 | joint-operating agreement, unit agreement, pooling | ||||||
8 | agreement, and farm-out agreement. | ||||||
9 | (17) "Money order" means a payment order for a | ||||||
10 | specified amount of money. The term includes an express | ||||||
11 | money order and a personal money order on which the | ||||||
12 | remitter is the purchaser. | ||||||
13 | (18) "Municipal bond" means a bond or evidence of | ||||||
14 | indebtedness issued by a municipality or other political | ||||||
15 | subdivision of a state. | ||||||
16 | (19) "Net card value" means the original purchase price | ||||||
17 | or original issued value of a stored-value card, plus | ||||||
18 | amounts added to the original price or value, minus amounts | ||||||
19 | used and any service charge, fee, or dormancy charge | ||||||
20 | permitted by law. | ||||||
21 | (20) "Non-freely transferable security" means a | ||||||
22 | security that cannot be delivered to the administrator by | ||||||
23 | the Depository Trust Clearing Corporation or similar | ||||||
24 | custodian of securities providing post-trade clearing and | ||||||
25 | settlement services to financial markets or cannot be | ||||||
26 | delivered because there is no agent to effect transfer. The |
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1 | term includes a worthless security. | ||||||
2 | (21) "Owner" means a person that has a legal, | ||||||
3 | beneficial, or equitable interest in property subject to | ||||||
4 | this Act or the person's legal representative when acting | ||||||
5 | on behalf of the owner. The term includes: | ||||||
6 | (A) a depositor, for a deposit; | ||||||
7 | (B) a beneficiary, for a trust other than a deposit | ||||||
8 | in trust; | ||||||
9 | (C) a creditor, claimant, or payee, for other | ||||||
10 | property; and | ||||||
11 | (D) the lawful bearer of a record that may be used | ||||||
12 | to obtain money, a reward, or a thing of value. | ||||||
13 | (22) "Payroll card" means a record that evidences a | ||||||
14 | payroll-card account as defined in Regulation E, 12 CFR | ||||||
15 | Part 1005, as amended. | ||||||
16 | (23) "Person" means an individual, estate, business | ||||||
17 | association, public corporation, government or | ||||||
18 | governmental subdivision, agency, or instrumentality, or | ||||||
19 | other legal entity whether or not for profit. | ||||||
20 | (24) "Property" means tangible property described in | ||||||
21 | Section 15-201 or a fixed and certain interest in | ||||||
22 | intangible property held, issued, or owed in the course of | ||||||
23 | a holder's business or by a government, governmental | ||||||
24 | subdivision, agency, or instrumentality. The term: | ||||||
25 | (A) includes all income from or increments to the | ||||||
26 | property; |
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1 | (B) includes property referred to as or evidenced | ||||||
2 | by: | ||||||
3 | (i) money, virtual currency, interest, or a | ||||||
4 | dividend, check, draft, deposit, or payroll card; | ||||||
5 | (ii) a credit balance, customer's overpayment, | ||||||
6 | stored-value card, security deposit, refund, | ||||||
7 | credit memorandum, unpaid wage, unused ticket for | ||||||
8 | which the issuer has an obligation to provide a | ||||||
9 | refund, mineral proceeds, or unidentified | ||||||
10 | remittance; | ||||||
11 | (iii) a security except for: | ||||||
12 | (I) a worthless security; or | ||||||
13 | (II) a security that is subject to a lien, | ||||||
14 | legal hold, or restriction evidenced on the | ||||||
15 | records of the holder or imposed by operation | ||||||
16 | of law, if the lien, legal hold, or restriction | ||||||
17 | restricts the holder's or owner's ability to | ||||||
18 | receive, transfer, sell, or otherwise | ||||||
19 | negotiate the security; | ||||||
20 | (iv) a bond, debenture, note, or other | ||||||
21 | evidence of indebtedness; | ||||||
22 | (v) money deposited to redeem a security, make | ||||||
23 | a distribution, or pay a dividend; | ||||||
24 | (vi) an amount due and payable under an annuity | ||||||
25 | contract or insurance policy; and | ||||||
26 | (vii) an amount distributable from a trust or |
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1 | custodial fund established under a plan to provide | ||||||
2 | health, welfare, pension, vacation, severance, | ||||||
3 | retirement, death, stock purchase, profit-sharing, | ||||||
4 | employee-savings, supplemental-unemployment | ||||||
5 | insurance, or a similar benefit; and | ||||||
6 | (C) does not include: | ||||||
7 | (i) game-related digital content; | ||||||
8 | (ii) a loyalty card; or | ||||||
9 | (iii) a gift card. | ||||||
10 | (25) "Putative holder" means a person believed by the | ||||||
11 | administrator to be a holder, until the person pays or | ||||||
12 | delivers to the administrator property subject to this Act | ||||||
13 | or the administrator or a court makes a final determination | ||||||
14 | that the person is or is not a holder. | ||||||
15 | (26) "Record" means information that is inscribed on a | ||||||
16 | tangible medium or that is stored in an electronic or other | ||||||
17 | medium and is retrievable in perceivable form. The phrase | ||||||
18 | "records of the holder" includes records maintained by a | ||||||
19 | third party that has contracted with the holder. | ||||||
20 | (27) "Security" means: | ||||||
21 | (A) a security as defined in Article 8 of the | ||||||
22 | Uniform Commercial Code; | ||||||
23 | (B) a security entitlement as defined in Article 8 | ||||||
24 | of the Uniform Commercial Code, including a customer | ||||||
25 | security account held by a registered broker-dealer, | ||||||
26 | to the extent the financial assets held in the security |
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1 | account are not: | ||||||
2 | (i) registered on the books of the issuer in | ||||||
3 | the name of the person for which the broker-dealer | ||||||
4 | holds the assets; | ||||||
5 | (ii) payable to the order of the person; or | ||||||
6 | (iii) specifically indorsed to the person; or | ||||||
7 | (C) an equity interest in a business association | ||||||
8 | not included in subparagraph (A) or (B). | ||||||
9 | (28) "Sign" means, with present intent to authenticate | ||||||
10 | or adopt a record: | ||||||
11 | (A) to execute or adopt a tangible symbol; or | ||||||
12 | (B) to attach to or logically associate with the | ||||||
13 | record an electronic symbol, sound, or process. | ||||||
14 | (29) "State" means a state of the United States, the | ||||||
15 | District of Columbia, the Commonwealth of Puerto Rico, the | ||||||
16 | United States Virgin Islands, or any territory or insular | ||||||
17 | possession subject to the jurisdiction of the United | ||||||
18 | States. | ||||||
19 | (30) "Stored-value card" means a record evidencing a | ||||||
20 | promise made for consideration by the seller or issuer of | ||||||
21 | the record that goods, services, or money will be provided | ||||||
22 | to the owner of the record to the value or amount shown in | ||||||
23 | the record. The term: | ||||||
24 | (A) includes: | ||||||
25 | (i) a record that contains or consists of a | ||||||
26 | microprocessor chip, magnetic strip, or other |
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1 | means for the storage of information, which is | ||||||
2 | prefunded and whose value or amount is decreased on | ||||||
3 | each use and increased by payment of additional | ||||||
4 | consideration; and | ||||||
5 | (ii) a gift card and payroll card; and | ||||||
6 | (B) does not include a loyalty card or game-related | ||||||
7 | digital content. | ||||||
8 | (31) "Utility" means a person that owns or operates for | ||||||
9 | public use a plant, equipment, real property, franchise, or | ||||||
10 | license for the following public services: | ||||||
11 | (A) transmission of communications or information; | ||||||
12 | (B) production, storage, transmission, sale, | ||||||
13 | delivery, or furnishing of electricity, water, steam, | ||||||
14 | or gas; or | ||||||
15 | (C) provision of sewage or septic services, or | ||||||
16 | trash, garbage, or recycling disposal. | ||||||
17 | (32) "Virtual currency" means a digital representation | ||||||
18 | of value used as a medium of exchange, unit of account, or | ||||||
19 | store of value, which does not have legal tender status | ||||||
20 | recognized by the United States. The term does not include: | ||||||
21 | (A) the software or protocols governing the | ||||||
22 | transfer of the digital representation of value; | ||||||
23 | (B) game-related digital content; or | ||||||
24 | (C) a loyalty card or gift card. | ||||||
25 | (33) "Worthless security" means a security whose cost | ||||||
26 | of liquidation and delivery to the administrator would |
| |||||||
| |||||||
1 | exceed the value of the security on the date a report is | ||||||
2 | due under this Act.
| ||||||
3 | Section 15-103. Inapplicability to foreign transaction. | ||||||
4 | This Act does not apply to property held, due, and owing in a | ||||||
5 | foreign country if the transaction out of which the property | ||||||
6 | arose was a foreign transaction.
| ||||||
7 | Section 15-104. Rulemaking. The administrator may adopt | ||||||
8 | rules to implement and administer this Act pursuant to the | ||||||
9 | Illinois Administrative Procedure Act.
| ||||||
10 | ARTICLE 2. PRESUMPTION OF ABANDONMENT | ||||||
11 | Section 15-201. When property presumed abandoned. Subject | ||||||
12 | to Section 15-210, the following property is presumed abandoned | ||||||
13 | if it is unclaimed by the apparent owner during the period | ||||||
14 | specified below: | ||||||
15 | (1) a traveler's check, 15 years after issuance; | ||||||
16 | (2) a money order, 7 years after issuance; | ||||||
17 | (3) (Blank). | ||||||
18 | (4) a state or municipal bond, bearer bond, or | ||||||
19 | original-issue-discount bond, 3 years after the earliest | ||||||
20 | of the date the bond matures or is called or the obligation | ||||||
21 | to pay the principal of the bond arises; | ||||||
22 | (5) a debt of a business association, 3 years after the |
| |||||||
| |||||||
1 | obligation to pay arises; | ||||||
2 | (6) a demand, savings, or time deposit, 3 years after | ||||||
3 | the later of maturity or the date of the last indication of | ||||||
4 | interest in the property by the apparent owner, except for | ||||||
5 | a deposit that is automatically renewable, 3 years after | ||||||
6 | its initial date of maturity unless the apparent owner | ||||||
7 | consented in a record on file with the holder to renewal at | ||||||
8 | or about the time of the renewal; | ||||||
9 | (7) money or a credit owed to a customer as a result of | ||||||
10 | a retail business transaction, other than in-store credit | ||||||
11 | for returned merchandise, other than a stored-value card, 3 | ||||||
12 | years after the obligation arose; | ||||||
13 | (8) an amount owed by an insurance company on a life or | ||||||
14 | endowment insurance policy or an annuity contract that has | ||||||
15 | matured or terminated, 3 years after the obligation to pay | ||||||
16 | arose under the terms of the policy or contract or, if a | ||||||
17 | policy or contract for which an amount is owed on proof of | ||||||
18 | death has not matured by proof of the death of the insured | ||||||
19 | or annuitant, as follows: | ||||||
20 | (A) with respect to an amount owed on a life or | ||||||
21 | endowment insurance policy, the earlier of: | ||||||
22 | (i) 3 years after the death of the insured; or | ||||||
23 | (ii) 2 years after the insured has attained, or | ||||||
24 | would have attained if living, the limiting age | ||||||
25 | under the mortality table on which the reserve for | ||||||
26 | the policy is based; and |
| |||||||
| |||||||
1 | (B) with respect to an amount owed on an annuity | ||||||
2 | contract, 3 years after the death of the annuitant. | ||||||
3 | (9) funds on deposit or held in trust for the | ||||||
4 | prepayment of a funeral or other funeral-related expenses, | ||||||
5 | the earliest of: | ||||||
6 | (A) 2 years after the date of death of the | ||||||
7 | beneficiary; | ||||||
8 | (B) one year after the date the beneficiary has | ||||||
9 | attained, or would have attained if living, the age of | ||||||
10 | 105 where the holder does not know whether the | ||||||
11 | beneficiary is deceased; | ||||||
12 | (C) 30 years after the contract for prepayment was | ||||||
13 | executed; | ||||||
14 | (10) property distributable by a business association | ||||||
15 | in the course of dissolution or distributions from the | ||||||
16 | termination of a retirement plan, one year after the | ||||||
17 | property becomes distributable; | ||||||
18 | (11) property held by a court, including property | ||||||
19 | received as proceeds of a class action, 3 years after the | ||||||
20 | property becomes distributable; | ||||||
21 | (12) property held by a government or governmental | ||||||
22 | subdivision, agency, or instrumentality, including | ||||||
23 | municipal bond interest and unredeemed principal under the | ||||||
24 | administration of a paying agent or indenture trustee, 3 | ||||||
25 | years after the property becomes distributable; | ||||||
26 | (13) wages, commissions, bonuses, or reimbursements to |
| |||||||
| |||||||
1 | which an employee is entitled, or other compensation for | ||||||
2 | personal services, including amounts held on a payroll | ||||||
3 | card, one year after the amount becomes payable; | ||||||
4 | (14) a deposit or refund owed to a subscriber by a | ||||||
5 | utility, one year after the deposit or refund becomes | ||||||
6 | payable, except that any capital credits or patronage | ||||||
7 | capital retired, returned, refunded or tendered to a member | ||||||
8 | of an electric cooperative, as defined in Section 3.4 of | ||||||
9 | the Electric Supplier Act, or a telephone or | ||||||
10 | telecommunications cooperative, as defined in Section | ||||||
11 | 13-212 of the Public Utilities Act, that has remained | ||||||
12 | unclaimed by the person appearing on the records of the | ||||||
13 | entitled cooperative for more than 2 years, shall not be | ||||||
14 | subject to, or governed by, any other provisions of this | ||||||
15 | Act, but rather shall be used by the cooperative for the | ||||||
16 | benefit of the general membership of the cooperative; and | ||||||
17 | (15) property not specified in this Section or Sections | ||||||
18 | 15-202 through 15-208, the earlier of 3 years after the | ||||||
19 | owner first has a right to demand the property or the | ||||||
20 | obligation to pay or distribute the property arises. | ||||||
21 | Notwithstanding anything to the contrary in this Section | ||||||
22 | 15-201, and subject to Section 15-210, a deceased owner cannot | ||||||
23 | indicate interest in his or her property. If the owner is | ||||||
24 | deceased and the abandonment period for the owner's property | ||||||
25 | specified in this Section 15-201 is greater than 2 years, then | ||||||
26 | the property, other than an amount owed by an insurance company |
| |||||||
| |||||||
1 | on a life or endowment insurance policy or an annuity contract | ||||||
2 | that has matured or terminated, shall instead be presumed | ||||||
3 | abandoned 2 years from the date of the owner's last indication | ||||||
4 | of interest in the property.
| ||||||
5 | Section 15-202. When tax-deferred retirement account | ||||||
6 | presumed abandoned. | ||||||
7 | (a) Subject to Section 15-210, property held in a pension | ||||||
8 | account or retirement account that qualifies for tax deferral | ||||||
9 | under the income-tax laws of the United States is presumed | ||||||
10 | abandoned if it is unclaimed by the apparent owner after the | ||||||
11 | later of: | ||||||
12 | (1) 3 years after the following dates: | ||||||
13 | (A) except as in subparagraph (B), the date a | ||||||
14 | communication sent by the holder by first-class United | ||||||
15 | States mail to the apparent owner is returned to the | ||||||
16 | holder undelivered by the United States Postal | ||||||
17 | Service; or | ||||||
18 | (B) if such communication is re-sent within 30 days | ||||||
19 | after the date the first communication is returned | ||||||
20 | undelivered, the date the second communication was | ||||||
21 | returned undelivered by the United States Postal | ||||||
22 | Service; or | ||||||
23 | (2) the earlier of the following dates: | ||||||
24 | (A) 3 years after the date the apparent owner | ||||||
25 | becomes 70.5 years of age, if determinable by the |
| |||||||
| |||||||
1 | holder; or | ||||||
2 | (B) one year after the date of mandatory | ||||||
3 | distribution following death if the Internal Revenue | ||||||
4 | Code requires distribution to avoid a tax penalty and | ||||||
5 | the holder: | ||||||
6 | (i) receives confirmation of the death of the | ||||||
7 | apparent owner in the ordinary course of its | ||||||
8 | business; or | ||||||
9 | (ii) confirms the death of the apparent owner | ||||||
10 | under subsection (b). | ||||||
11 | (b) If a holder in the ordinary course of its business | ||||||
12 | receives notice or an indication of the death of an apparent | ||||||
13 | owner and subsection (a)(2) applies, the holder shall attempt | ||||||
14 | not later than 90 days after receipt of the notice or | ||||||
15 | indication to confirm whether the apparent owner is deceased. | ||||||
16 | (c) If the holder does not send communications to the | ||||||
17 | apparent owner of an account described in subsection (a) by | ||||||
18 | first-class United States mail on at least an annual basis, the | ||||||
19 | holder shall attempt to confirm the apparent owner's interest | ||||||
20 | in the property by sending the apparent owner an | ||||||
21 | electronic-mail communication not later than 2 years after the | ||||||
22 | apparent owner's last indication of interest in the property. | ||||||
23 | However, the holder promptly shall attempt to contact the | ||||||
24 | apparent owner by first-class United States mail if: | ||||||
25 | (1) the holder does not have information needed to send | ||||||
26 | the apparent owner an electronic mail communication or the |
| |||||||
| |||||||
1 | holder believes that the apparent owner's electronic mail | ||||||
2 | address in the holder's records is not valid; | ||||||
3 | (2) the holder receives notification that the | ||||||
4 | electronic-mail communication was not received; or | ||||||
5 | (3) the apparent owner does not respond to the | ||||||
6 | electronic-mail communication within 30 days after the | ||||||
7 | communication was sent. | ||||||
8 | (d) If first-class United States mail sent under subsection | ||||||
9 | (c) is returned to the holder undelivered by the United States | ||||||
10 | Postal Service, the property is presumed abandoned 3 years | ||||||
11 | after the later of: | ||||||
12 | (1) except as in paragraph (2), the date a | ||||||
13 | communication to contact the apparent owner sent by | ||||||
14 | first-class United States mail is returned to the holder | ||||||
15 | undelivered; | ||||||
16 | (2) if such communication is re-sent within 30 days | ||||||
17 | after the date the first communication is returned | ||||||
18 | undelivered, the date the second communication was | ||||||
19 | returned undelivered; or | ||||||
20 | (3) the date established by subsection (a)(2).
| ||||||
21 | Section 15-203. When other tax-deferred account presumed | ||||||
22 | abandoned. | ||||||
23 | (a) Subject to Section 15-210 and except for property | ||||||
24 | described in Section 15-202, property held in an account or | ||||||
25 | plan, including a health savings account, that qualifies for |
| |||||||
| |||||||
1 | tax deferral under the income-tax laws of the United States is | ||||||
2 | presumed abandoned if it is unclaimed by the apparent owner 3 | ||||||
3 | years after the earlier of: | ||||||
4 | (1) the date, if determinable by the holder, specified | ||||||
5 | in the income-tax laws and regulations of the United States | ||||||
6 | by which distribution of the property must begin to avoid a | ||||||
7 | tax penalty, with no distribution having been made; or | ||||||
8 | (2) 30 years after the date the account was opened. | ||||||
9 | (b) If the owner is deceased, then property subject to this | ||||||
10 | Section is presumed abandoned 2 years from the earliest of: | ||||||
11 | (1) the date of the distribution or attempted | ||||||
12 | distribution of the property; | ||||||
13 | (2) the date of the required distribution as stated in | ||||||
14 | the plan or trust agreement governing the plan; or | ||||||
15 | (3) the date, if determinable by the holder, specified | ||||||
16 | in the income tax laws of the United States by which | ||||||
17 | distribution of the property must begin in order to avoid a | ||||||
18 | tax penalty.
| ||||||
19 | Section 15-204. When custodial account for minor presumed | ||||||
20 | abandoned. | ||||||
21 | (a) Subject to Section 15-210, property held in an account | ||||||
22 | established under a state's Uniform Gifts to Minors Act or | ||||||
23 | Uniform Transfers to Minors Act is presumed abandoned if it is | ||||||
24 | unclaimed by or on behalf of the minor on whose behalf the | ||||||
25 | account was opened 3 years after the later of: |
| |||||||
| |||||||
1 | (1) except as in subparagraph (2), the date a | ||||||
2 | communication sent by the holder by first-class United | ||||||
3 | States mail to the custodian of the minor on whose behalf | ||||||
4 | the account was opened is returned undelivered to the | ||||||
5 | holder by the United States Postal Service; | ||||||
6 | (2) if a communication is re-sent within 30 days after | ||||||
7 | the date the first communication is returned undelivered, | ||||||
8 | the date the second communication was returned | ||||||
9 | undelivered; or | ||||||
10 | (3) the date on which the custodian is required to | ||||||
11 | transfer the property to the minor or the minor's estate in | ||||||
12 | accordance with the Uniform Gifts to Minors Act or Uniform | ||||||
13 | Transfers to Minors Act of the state in which the account | ||||||
14 | was opened. | ||||||
15 | (b) If the holder does not send communications to the | ||||||
16 | custodian of the minor on whose behalf an account described in | ||||||
17 | subsection (a) was opened by first-class United States mail on | ||||||
18 | at least an annual basis, the holder shall attempt to confirm | ||||||
19 | the custodian's interest in the property by sending the | ||||||
20 | custodian an electronic-mail communication not later than 2 | ||||||
21 | years after the custodian's last indication of interest in the | ||||||
22 | property. However, the holder promptly shall attempt to contact | ||||||
23 | the custodian by first-class United States mail if: | ||||||
24 | (1) the holder does not have information needed to send | ||||||
25 | the custodian an electronic mail communication or the | ||||||
26 | holder believes that the custodian's electronic-mail |
| |||||||
| |||||||
1 | address in the holder's records is not valid; | ||||||
2 | (2) the holder receives notification that the | ||||||
3 | electronic-mail communication was not received; or | ||||||
4 | (3) the custodian does not respond to the | ||||||
5 | electronic-mail communication within 30 days after the | ||||||
6 | communication was sent. | ||||||
7 | (c) If first-class United States mail sent under subsection | ||||||
8 | (b) is returned undelivered to the holder by the United States | ||||||
9 | Postal Service, the property is presumed abandoned 3 years | ||||||
10 | after the later of: | ||||||
11 | (1) the date a communication to contact the custodian | ||||||
12 | by first-class United States mail is returned to the holder | ||||||
13 | undelivered by the United States Postal Service; or | ||||||
14 | (2) the date established by subsection (a)(3). | ||||||
15 | (d) Notwithstanding any other provision of this Act, money | ||||||
16 | of a minor deposited pursuant to Section 24-21 of the Probate | ||||||
17 | Act of 1975 shall not be presumed abandoned earlier than 3 | ||||||
18 | years after the minor attains legal age. Such money shall be | ||||||
19 | deposited into an account which shall indicate the date of | ||||||
20 | birth of the minor. | ||||||
21 | (e) (Blank). | ||||||
22 | (f) When the property in the account described in | ||||||
23 | subsections (a) or (d) is transferred to the minor on whose | ||||||
24 | behalf an account was opened or to the minor's estate, the | ||||||
25 | property in the account is no longer subject to this Section.
|
| |||||||
| |||||||
1 | Section 15-205. When contents of safe-deposit box presumed | ||||||
2 | abandoned. Tangible property held in a safe-deposit box are | ||||||
3 | presumed abandoned if the property remains unclaimed by the | ||||||
4 | apparent owner 5 years after the expiration of the lease or | ||||||
5 | rental period for the box.
| ||||||
6 | Section 15-206. When stored-value card presumed abandoned. | ||||||
7 | (a) Subject to Section 15-210, the net card value of a | ||||||
8 | stored-value card, other than a payroll card or a gift card, is | ||||||
9 | presumed abandoned on the latest of 5 years after: | ||||||
10 | (1) December 31 of the year in which the card is issued | ||||||
11 | or additional funds are deposited into it; | ||||||
12 | (2) the most recent indication of interest in the card | ||||||
13 | by the apparent owner; or | ||||||
14 | (3) a verification or review of the balance by or on | ||||||
15 | behalf of the apparent owner. | ||||||
16 | (b) The amount presumed abandoned in a stored-value card is | ||||||
17 | the net card value at the time it is presumed abandoned. | ||||||
18 | (c) However, if a holder has reported and remitted to the | ||||||
19 | administrator the net card value on a stored-value card | ||||||
20 | presumed abandoned under this Section and the stored-value card | ||||||
21 | does not have an expiration date, then the holder must honor | ||||||
22 | the card on presentation indefinitely and may then request | ||||||
23 | reimbursement from the administrator under Section 605.
| ||||||
24 | Section 15-208. When security presumed abandoned. |
| |||||||
| |||||||
1 | (a) Subject to Section 15-210, a security is presumed | ||||||
2 | abandoned upon the earlier of the following: | ||||||
3 | (1) 3 years after the date a communication sent by the | ||||||
4 | holder by first-class United States mail to the apparent | ||||||
5 | owner is returned to the holder undelivered by the United | ||||||
6 | States Postal Service; however, if such returned | ||||||
7 | communication is re-sent within one month to the apparent | ||||||
8 | owner, the 3-year period does not begin to run until the | ||||||
9 | day the resent item is returned as undeliverable; or | ||||||
10 | (2) 5 years after the date of the apparent owner's last | ||||||
11 | indication of interest in the security. | ||||||
12 | (b) If the holder does not send communications to the | ||||||
13 | apparent owner of a security by first-class United States mail | ||||||
14 | on at least an annual basis, the holder shall attempt to | ||||||
15 | confirm the apparent owner's interest in the security by | ||||||
16 | sending the apparent owner an electronic-mail communication | ||||||
17 | not later than 3 years after the apparent owner's last | ||||||
18 | indication of interest in the security. However, the holder | ||||||
19 | promptly shall attempt to contact the apparent owner by | ||||||
20 | first-class United States mail if: | ||||||
21 | (1) the holder does not have information needed to send | ||||||
22 | the apparent owner an electronic-mail communication or the | ||||||
23 | holder believes that the apparent owner's electronic-mail | ||||||
24 | address in the holder's records is not valid; | ||||||
25 | (2) the holder receives notification that the | ||||||
26 | electronic-mail communication was not received; or |
| |||||||
| |||||||
1 | (3) the apparent owner does not respond to the | ||||||
2 | electronic-mail communication within 30 days after the | ||||||
3 | communication was sent. | ||||||
4 | (c) If first-class United States mail sent under subsection | ||||||
5 | (b) is returned to the holder undelivered by the United States | ||||||
6 | Postal Service, the security is presumed abandoned in | ||||||
7 | accordance with subsection (a)(2) above. | ||||||
8 | (d) If a holder in the ordinary course of its business | ||||||
9 | receives notice or an indication of the death of an apparent | ||||||
10 | owner, the holder shall attempt not later than 90 days after | ||||||
11 | receipt of the notice or indication to confirm whether the | ||||||
12 | apparent owner is deceased. Notwithstanding the standards set | ||||||
13 | forth in paragraphs (a), (b) and (c), if the holder either | ||||||
14 | receives confirmation of the death of the apparent owner in the | ||||||
15 | ordinary course of its business or confirms the death of the | ||||||
16 | apparent owner under this subsection (d), then, the property | ||||||
17 | shall be presumed abandoned 2 years after the date of death of | ||||||
18 | the owner.
| ||||||
19 | Section 15-209. When related property presumed abandoned. | ||||||
20 | At and after the time property is presumed abandoned under this | ||||||
21 | Act, any other property right or interest accrued or accruing | ||||||
22 | from the property and not previously presumed abandoned is also | ||||||
23 | presumed abandoned.
| ||||||
24 | Section 15-210. Indication of apparent owner interest in |
| |||||||
| |||||||
1 | property. | ||||||
2 | (a) The period after which property is presumed abandoned | ||||||
3 | is measured from the later of: | ||||||
4 | (1) the date the property is presumed abandoned under | ||||||
5 | this Article; or | ||||||
6 | (2) the latest indication of interest by the apparent | ||||||
7 | owner in the property. | ||||||
8 | (b) Under this Act, an indication of an apparent owner's | ||||||
9 | interest in property includes: | ||||||
10 | (1) a record communicated by the apparent owner to the | ||||||
11 | holder or agent of the holder concerning the property or | ||||||
12 | the account in which the property is held; | ||||||
13 | (2) an oral communication by the apparent owner to the | ||||||
14 | holder or agent of the holder concerning the property or | ||||||
15 | the account in which the property is held, if the holder or | ||||||
16 | its agent contemporaneously makes and preserves a record of | ||||||
17 | the fact of the apparent owner's communication; | ||||||
18 | (3) presentment of a check or other instrument of | ||||||
19 | payment of a dividend, interest payment, or other | ||||||
20 | distribution, or evidence of receipt of a distribution made | ||||||
21 | by electronic or similar means, with respect to an account, | ||||||
22 | underlying security, or interest in a business | ||||||
23 | association; | ||||||
24 | (4) activity directed by an apparent owner in the | ||||||
25 | account in which the property is held, including accessing | ||||||
26 | the account or information concerning the account, or a |
| |||||||
| |||||||
1 | direction by the apparent owner to increase, decrease, or | ||||||
2 | otherwise change the amount or type of property held in the | ||||||
3 | account; | ||||||
4 | (5) a deposit into or withdrawal from an account at a | ||||||
5 | financial organization, except for a recurring Automated | ||||||
6 | Clearing House (ACH) debit or credit previously authorized | ||||||
7 | by the apparent owner or an automatic reinvestment of | ||||||
8 | dividends or interest; and | ||||||
9 | (6) subject to subsection (e), payment of a premium on | ||||||
10 | an insurance policy. | ||||||
11 | (c) An action by an agent or other representative of an | ||||||
12 | apparent owner, other than the holder acting as the apparent | ||||||
13 | owner's agent, is presumed to be an action on behalf of the | ||||||
14 | apparent owner. | ||||||
15 | (d) A communication with an apparent owner by a person | ||||||
16 | other than the holder or the holder's representative is not an | ||||||
17 | indication of interest in the property by the apparent owner | ||||||
18 | unless a record of the communication evidences the apparent | ||||||
19 | owner's knowledge of a right to the property. | ||||||
20 | (e) If the insured dies or the insured or beneficiary of an | ||||||
21 | insurance policy otherwise becomes entitled to the proceeds | ||||||
22 | before depletion of the cash surrender value of the policy by | ||||||
23 | operation of an automatic-premium-loan provision or other | ||||||
24 | nonforfeiture provision contained in the policy, the operation | ||||||
25 | does not prevent the policy from maturing or terminating. | ||||||
26 | (f) If the apparent owner has another property with the |
| |||||||
| |||||||
1 | holder to which Section 201(6) applies, then activity directed | ||||||
2 | by an apparent owner in any other accounts, including loan | ||||||
3 | accounts, at a financial organization holding an inactive | ||||||
4 | account of the apparent owner shall be an indication of | ||||||
5 | interest in all such accounts if:
| ||||||
6 | (A) the apparent owner engages in one or more of | ||||||
7 | the following activities:
| ||||||
8 | (i) the apparent owner undertakes one or more | ||||||
9 | of the actions described in subsection (b) of this | ||||||
10 | Section regarding any account that appears on a | ||||||
11 | consolidated statement with the inactive account;
| ||||||
12 | (ii) the apparent owner increases or decreases | ||||||
13 | the amount of funds in any other account the | ||||||
14 | apparent owner has with the financial | ||||||
15 | organization; or
| ||||||
16 | (iii) the apparent owner engages in any other | ||||||
17 | relationship with the financial organization, | ||||||
18 | including payment of any amounts due on a loan; and
| ||||||
19 | (B) the foregoing apply so long as the mailing | ||||||
20 | address for the apparent owner in the financial | ||||||
21 | organization's books and records is the same for both | ||||||
22 | the inactive account and the active account.
| ||||||
23 | Section 15-211. Knowledge of death of insured or annuitant. | ||||||
24 | (a) In this Section, "death master file" means the United | ||||||
25 | States Social Security Administration Death Master File or |
| |||||||
| |||||||
1 | other database or service that is at least as comprehensive as | ||||||
2 | the United States Social Security Administration Death Master | ||||||
3 | File for determining that an individual reportedly has died. | ||||||
4 | (b) With respect to a life or endowment insurance policy or | ||||||
5 | annuity contract for which an amount is owed on proof of death, | ||||||
6 | but which has not matured by proof of death of the insured or | ||||||
7 | annuitant, the company has knowledge of the death of an insured | ||||||
8 | or annuitant when: | ||||||
9 | (1) the company receives a death certificate or court | ||||||
10 | order determining that the insured or annuitant has died; | ||||||
11 | (2) the company: | ||||||
12 | (A) receives notice of the death of the insured or | ||||||
13 | annuitant from the administrator or an unclaimed | ||||||
14 | property administrator of another state, a | ||||||
15 | beneficiary, a policy owner, a relative of the insured, | ||||||
16 | a representative under the Probate Act of 1975, or from | ||||||
17 | an executor or other legal representative of the | ||||||
18 | insured's or annuitant's estate; and | ||||||
19 | (B) validates the death of the insured or | ||||||
20 | annuitant; | ||||||
21 | (3) the company conducts a comparison for any purpose | ||||||
22 | between a death master file and the names of some or all of | ||||||
23 | the company's insureds or annuitants, finds a match that | ||||||
24 | provides notice that the insured or annuitant has died; or | ||||||
25 | (4) the administrator or the administrator's agent | ||||||
26 | conducts a comparison for the purpose of finding matches |
| |||||||
| |||||||
1 | during an examination conducted under Article 10 between a | ||||||
2 | death master file and the names of some or all of the | ||||||
3 | company's insureds or annuitants, finds a match that | ||||||
4 | provides notice that the insured or annuitant has died. | ||||||
5 | (c) The following rules apply under this Section: | ||||||
6 | (1) A death-master-file match under subsection (b)(3) | ||||||
7 | or (4) occurs if the criteria for an exact or partial match | ||||||
8 | are satisfied as provided by either: | ||||||
9 | (A) the Unclaimed Life Insurance Benefits Act or | ||||||
10 | other law of this State other than this Act; or | ||||||
11 | (B) a rule or policy adopted by the Director of the | ||||||
12 | Department of Insurance. | ||||||
13 | (2) The death-master-file match does not constitute | ||||||
14 | proof of death for the purpose of submission to an | ||||||
15 | insurance company of a claim by a beneficiary, annuitant, | ||||||
16 | or owner of the policy or contract for an amount due under | ||||||
17 | an insurance policy or annuity contract. | ||||||
18 | (3) The death-master-file match or validation of the | ||||||
19 | insured's or annuitant's death does not alter the | ||||||
20 | requirements for a beneficiary, annuitant, or owner of the | ||||||
21 | policy or contract to make a claim to receive proceeds | ||||||
22 | under the terms of the policy or contract. | ||||||
23 | (4) An insured or an annuitant is presumed dead if the | ||||||
24 | date of his or her death is indicated by the | ||||||
25 | death-master-file match under either subsection (b)(3) or | ||||||
26 | (b)(4), unless the insurer has competent and substantial |
| |||||||
| |||||||
1 | evidence that the person is living, including, but not | ||||||
2 | limited to, a contact made by the insurer with the person | ||||||
3 | or his or her legal representative. | ||||||
4 | (d) This Act does not affect the determination of the | ||||||
5 | extent to which an insurance company before the effective date | ||||||
6 | of this Act had knowledge of the death of an insured or | ||||||
7 | annuitant or was required to conduct a death-master-file | ||||||
8 | comparison to determine whether amounts owed by the company on | ||||||
9 | a life or endowment insurance policy or annuity contract were | ||||||
10 | presumed abandoned or unclaimed.
| ||||||
11 | Section 15-212. Deposit account for proceeds of insurance | ||||||
12 | policy or annuity contract. If proceeds payable under a life or | ||||||
13 | endowment insurance policy or annuity contract are deposited | ||||||
14 | into an account with check or draft-writing privileges for the | ||||||
15 | beneficiary of the policy or contract and, under a | ||||||
16 | supplementary contract not involving annuity benefits other | ||||||
17 | than death benefits, the proceeds are retained by the insurance | ||||||
18 | company or the financial organization where the account is | ||||||
19 | held, the policy or contract includes the assets in the | ||||||
20 | account.
| ||||||
21 | Section 15-213. United States savings bonds. | ||||||
22 | (a) As used in this Section, "United States savings bond" | ||||||
23 | means property, tangible or intangible, in the form of a | ||||||
24 | savings bond issued by the United States Treasury, whether in |
| |||||||
| |||||||
1 | paper, electronic, or paperless form, along with all proceeds | ||||||
2 | thereof in the possession of the administrator. | ||||||
3 | (b) Notwithstanding any provision of this Act to the | ||||||
4 | contrary, a United States savings bond subject to this Section | ||||||
5 | or held or owing in this State by any person is presumed | ||||||
6 | abandoned when such bond has remained unclaimed and unredeemed | ||||||
7 | for 5 years after its date of final extended maturity. | ||||||
8 | (c) United States savings bonds that are presumed abandoned | ||||||
9 | and unclaimed under subsection (b) shall escheat to the State | ||||||
10 | of Illinois and all property rights and legal title to and | ||||||
11 | ownership of the United States savings bonds, or proceeds from | ||||||
12 | the bonds, including all rights, powers, and privileges of | ||||||
13 | survivorship of any owner, co-owner, or beneficiary, shall vest | ||||||
14 | solely in the State according to the procedure set forth in | ||||||
15 | subsections (d) through (f). | ||||||
16 | (d) Within 180 days after a United States savings bond has | ||||||
17 | been presumed abandoned, in the absence of a claim having been | ||||||
18 | filed with the administrator for the savings bond, the | ||||||
19 | administrator shall commence a civil action in the Circuit | ||||||
20 | Court of Sangamon County for a determination that the United | ||||||
21 | States savings bonds has escheated to the State. The | ||||||
22 | administrator may postpone the bringing of the action until | ||||||
23 | sufficient United States savings bonds have accumulated in the | ||||||
24 | administrator's custody to justify the expense of the | ||||||
25 | proceedings. | ||||||
26 | (e) The administrator shall make service by publication in |
| |||||||
| |||||||
1 | the civil action in accordance with Sections 2-206 and 2-207 of | ||||||
2 | the Code of Civil Procedure, which shall include the filing | ||||||
3 | with the Circuit Court of Sangamon County of the affidavit | ||||||
4 | required in Section 2-206 of that Code by an employee of the | ||||||
5 | administrator with personal knowledge of the efforts made to | ||||||
6 | contact the owners of United States savings bonds presumed | ||||||
7 | abandoned under this Section. In addition to the diligent | ||||||
8 | inquiries made pursuant to Section 2-206 of the Code of Civil | ||||||
9 | Procedure, the administrator may also utilize additional | ||||||
10 | discretionary means to attempt to provide notice to persons who | ||||||
11 | may own a United States savings bond registered to a person | ||||||
12 | with a last known address in the State of Illinois subject to a | ||||||
13 | civil action pursuant to subsection (d). | ||||||
14 | (f) The owner of a United States savings bond registered to | ||||||
15 | a person with a last known address in the State of Illinois | ||||||
16 | subject to a civil action pursuant to subsection (d) may file a | ||||||
17 | claim for such United States savings bond with either the | ||||||
18 | administrator or by filing a claim in the civil action in the | ||||||
19 | Circuit Court of Sangamon County in which the savings bond | ||||||
20 | registered to that person is at issue prior to the entry of a | ||||||
21 | final judgment by the Circuit Court pursuant to this | ||||||
22 | subsection, and unless the Circuit Court determines that such | ||||||
23 | United States savings bond is not owned by the claimant, then | ||||||
24 | such United States savings bond shall no longer be presumed | ||||||
25 | abandoned. If no person files a claim or appears at the hearing | ||||||
26 | to substantiate a disputed claim or if the court determines |
| |||||||
| |||||||
1 | that a claimant is not entitled to the property claimed by the | ||||||
2 | claimant, then the court, if satisfied by evidence that the | ||||||
3 | administrator has substantially complied with the laws of this | ||||||
4 | State, shall enter a judgment that the United States savings | ||||||
5 | bonds have escheated to this State, and all property rights and | ||||||
6 | legal title to and ownership of such United States savings | ||||||
7 | bonds or proceeds from such bonds, including all rights, | ||||||
8 | powers, and privileges of survivorship of any owner, co-owner, | ||||||
9 | or beneficiary, shall vest in this State. | ||||||
10 | (g) The administrator shall redeem from the Bureau of the | ||||||
11 | Fiscal Service of the United States Treasury the United States | ||||||
12 | savings bonds escheated to the State and deposit the proceeds | ||||||
13 | from the redemption of United States savings bonds into the | ||||||
14 | Unclaimed Property Trust Fund. | ||||||
15 | (h) Any person making a claim for the United States savings | ||||||
16 | bonds escheated to the State under this subsection, or for the | ||||||
17 | proceeds from such bonds, may file a claim with the | ||||||
18 | administrator. Upon providing sufficient proof of the validity | ||||||
19 | of such person's claim, the administrator may, in his or her | ||||||
20 | sole discretion, pay such claim. If payment has been made to | ||||||
21 | any claimant, no action thereafter may be maintained by any | ||||||
22 | other claimant against the State or any officer thereof for or | ||||||
23 | on account of such funds.
| ||||||
24 | ARTICLE 3. RULES FOR TAKING CUSTODY OF PROPERTY PRESUMED | ||||||
25 | ABANDONED |
| |||||||
| |||||||
1 | Section 15-301. Address of apparent owner to establish | ||||||
2 | priority. In this Article, the following rules apply: | ||||||
3 | (1) The last-known address of an apparent owner is any | ||||||
4 | description, code, or other indication of the location of | ||||||
5 | the apparent owner which identifies the state, even if the | ||||||
6 | description, code, or indication of location is not | ||||||
7 | sufficient to direct the delivery of first-class United | ||||||
8 | States mail to the apparent owner. | ||||||
9 | (2) If the United States postal zip code associated | ||||||
10 | with the apparent owner is for a post office located in | ||||||
11 | this State, this State is deemed to be the state of the | ||||||
12 | last-known address of the apparent owner unless other | ||||||
13 | records associated with the apparent owner specifically | ||||||
14 | identify the physical address of the apparent owner to be | ||||||
15 | in another state. | ||||||
16 | (3) If the address under paragraph (2) is in another | ||||||
17 | state, the other state is deemed to be the state of the | ||||||
18 | last-known address of the apparent owner. | ||||||
19 | (4) The address of the apparent owner of a life or | ||||||
20 | endowment insurance policy or annuity contract or its | ||||||
21 | proceeds is presumed to be the address of the insured or | ||||||
22 | annuitant if a person other than the insured or annuitant | ||||||
23 | is entitled to the amount owed under the policy or contract | ||||||
24 | and the address of the other person is not known by the | ||||||
25 | insurance company and cannot be determined under Section |
| |||||||
| |||||||
1 | 15-302. The address of the apparent owner of other property | ||||||
2 | where ownership vests in a beneficiary upon the death of | ||||||
3 | the owner is presumed to be the address of the now-deceased | ||||||
4 | owner if the address of the beneficiary is not known by the | ||||||
5 | holder and cannot be determined under Section 15-302.
| ||||||
6 | Section 15-302. Address of apparent owner in this State. | ||||||
7 | The administrator may take custody of property that is presumed | ||||||
8 | abandoned, whether located in this State, another state, or a | ||||||
9 | foreign country if: | ||||||
10 | (1) the last-known address of the apparent owner in the | ||||||
11 | records of the holder is in this State; or | ||||||
12 | (2) the records of the holder do not reflect the | ||||||
13 | identity or last-known address of the apparent owner, but | ||||||
14 | the administrator has determined that the last-known | ||||||
15 | address of the apparent owner is in this State.
| ||||||
16 | Section 15-303. If records show multiple addresses of | ||||||
17 | apparent owner. | ||||||
18 | (a) Except as in subsection (b), if records of a holder | ||||||
19 | reflect multiple addresses for an apparent owner and this State | ||||||
20 | is the state of the most recently recorded address, this State | ||||||
21 | may take custody of property presumed abandoned, whether | ||||||
22 | located in this State or another state. | ||||||
23 | (b) If it appears from records of the holder that the most | ||||||
24 | recently recorded address of the apparent owner under |
| |||||||
| |||||||
1 | subsection (a) is a temporary address and this State is the | ||||||
2 | state of the next most recently recorded address that is not a | ||||||
3 | temporary address, this State may take custody of the property | ||||||
4 | presumed abandoned.
| ||||||
5 | Section 15-304. Holder domiciled in this State. | ||||||
6 | (a) Except as in subsection (b) or Section 15-302 or | ||||||
7 | 15-303, the administrator may take custody of property presumed | ||||||
8 | abandoned, whether located in this State, another state, or a | ||||||
9 | foreign country, if the holder is domiciled in this State or is | ||||||
10 | this State or a governmental subdivision, agency, or | ||||||
11 | instrumentality of this State, and | ||||||
12 | (1) another state or foreign country is not entitled to | ||||||
13 | the property because there is no last-known address of the | ||||||
14 | apparent owner or other person entitled to the property in | ||||||
15 | the records of the holder; or | ||||||
16 | (2) the state or foreign country of the last-known | ||||||
17 | address of the apparent owner or other person entitled to | ||||||
18 | the property does not provide for custodial taking of the | ||||||
19 | property. | ||||||
20 | (b) Property is not subject to custody of the administrator | ||||||
21 | under subsection (a) if the property is specifically exempt | ||||||
22 | from custodial taking under the law of this State or the state | ||||||
23 | or foreign country of the last-known address of the apparent | ||||||
24 | owner. | ||||||
25 | (c) If a holder's state of domicile has changed since the |
| |||||||
| |||||||
1 | time property was presumed abandoned, the holder's state of | ||||||
2 | domicile under this Section is deemed to be the state where the | ||||||
3 | holder was domiciled at the time the property was presumed | ||||||
4 | abandoned.
| ||||||
5 | Section 15-305. Custody if transaction took place in this | ||||||
6 | State. Except as in Section 15-302, 15-303, or 15-304, the | ||||||
7 | administrator may take custody of property presumed abandoned | ||||||
8 | whether located in this State or another state if: | ||||||
9 | (1) the transaction out of which the property arose | ||||||
10 | took place in this State; | ||||||
11 | (2) the holder is domiciled in a state that does not | ||||||
12 | provide for the custodial taking of the property, except | ||||||
13 | that if the property is specifically exempt from custodial | ||||||
14 | taking under the law of the state of the holder's domicile, | ||||||
15 | the property is not subject to the custody of the | ||||||
16 | administrator; and | ||||||
17 | (3) the last-known address of the apparent owner or | ||||||
18 | other person entitled to the property is unknown or in a | ||||||
19 | state that does not provide for the custodial taking of the | ||||||
20 | property, except that if the property is specifically | ||||||
21 | exempt from custodial taking under the law of the state of | ||||||
22 | the last-known address, the property is not subject to the | ||||||
23 | custody of the administrator.
| ||||||
24 | Section 15-306. Traveler's check, money order, or similar |
| |||||||
| |||||||
1 | instrument. The administrator may take custody of sums payable | ||||||
2 | on a traveler's check, money order, or similar instrument | ||||||
3 | presumed abandoned to the extent permissible under 12 U.S.C. | ||||||
4 | Sections 2501 through 2503, as amended.
| ||||||
5 | Section 15-307. Burden of proof to establish | ||||||
6 | administrator's right to custody. Subject to Article 4 and | ||||||
7 | Section 15-1005, if the administrator asserts a right to | ||||||
8 | custody of unclaimed property and there is a dispute concerning | ||||||
9 | such property, the administrator has the initial burden to | ||||||
10 | prove: | ||||||
11 | (1) the amount of the property; | ||||||
12 | (2) the property is presumed abandoned; and | ||||||
13 | (3) the property is subject to the custody of the | ||||||
14 | administrator.
| ||||||
15 | ARTICLE 4. REPORT BY HOLDER | ||||||
16 | Section 15-401. Report required by holder. | ||||||
17 | (a) A holder of property presumed abandoned and subject to | ||||||
18 | the custody of the administrator shall report in a record to | ||||||
19 | the administrator concerning the property. A holder shall | ||||||
20 | report via the internet in a format approved by the | ||||||
21 | administrator, unless the administrator gives a holder | ||||||
22 | specific permission to file a paper report. | ||||||
23 | (b) A holder may contract with a third party to make the |
| |||||||
| |||||||
1 | report required under subsection (a). | ||||||
2 | (c) Whether or not a holder contracts with a third party | ||||||
3 | under subsection (b), the holder is responsible: | ||||||
4 | (1) to the administrator for the complete, accurate, | ||||||
5 | and timely reporting of property presumed abandoned; and | ||||||
6 | (2) for paying or delivering to the administrator | ||||||
7 | property described in the report.
| ||||||
8 | Section 15-402. Content of report. | ||||||
9 | (a) The report required under Section 15-401 must: | ||||||
10 | (1) be signed by or on behalf of the holder and | ||||||
11 | verified as to its completeness and accuracy; | ||||||
12 | (2) if filed electronically, be in a secure format | ||||||
13 | approved by the administrator which protects confidential | ||||||
14 | information of the apparent owner; | ||||||
15 | (3) describe the property; | ||||||
16 | (4) except for a traveler's check, money order, or | ||||||
17 | similar instrument, contain the name, if known, last-known | ||||||
18 | address, if known, and Social Security number or taxpayer | ||||||
19 | identification number, if known or readily ascertainable, | ||||||
20 | of the apparent owner of property with a value of $5 or | ||||||
21 | more; | ||||||
22 | (5) for an amount held or owing under a life or | ||||||
23 | endowment insurance policy, annuity contract, or other | ||||||
24 | property where ownership vests in a beneficiary upon the | ||||||
25 | death of the owner, contain the name and last-known address |
| |||||||
| |||||||
1 | of the insured, annuitant, or other apparent owner of the | ||||||
2 | policy or contract and of the beneficiary; | ||||||
3 | (6) for property held in or removed from a safe-deposit | ||||||
4 | box, indicate the location of the property, where it may be | ||||||
5 | inspected by the administrator, and any amounts owed to the | ||||||
6 | holder under Section 15-606; | ||||||
7 | (7) contain the commencement date for determining | ||||||
8 | abandonment under Article 2; | ||||||
9 | (8) state that the holder has complied with the notice | ||||||
10 | requirements of Section 15-501; | ||||||
11 | (9) identify property that is a non-freely | ||||||
12 | transferable security and explain why it is a non-freely | ||||||
13 | transferable security; and | ||||||
14 | (10) contain other information the administrator | ||||||
15 | prescribes by rules. | ||||||
16 | (b) A report under Section 15-401 may include in the | ||||||
17 | aggregate items valued under $5 each. If the report includes | ||||||
18 | items in the aggregate valued under $5 each, the administrator | ||||||
19 | may not require the holder to provide the name and address of | ||||||
20 | an apparent owner of an item unless the information is | ||||||
21 | necessary to verify or process a claim in progress by the | ||||||
22 | apparent owner. | ||||||
23 | (c) A report under Section 15-401 may include personal | ||||||
24 | information as defined in Section 15-1401(a) about the apparent | ||||||
25 | owner or the apparent owner's property. | ||||||
26 | (d) If a holder has changed its name while holding property |
| |||||||
| |||||||
1 | presumed abandoned or is a successor to another person that | ||||||
2 | previously held the property for the apparent owner, the holder | ||||||
3 | must include in the report under Section 15-401 its former name | ||||||
4 | or the name of the previous holder, if any, and the known name | ||||||
5 | and address of each previous holder of the property.
| ||||||
6 | Section 15-403. When report to be filed. | ||||||
7 | (a) Except as otherwise provided in subsection (b) and | ||||||
8 | subject to subsection (c), the report under Section 15-401 must | ||||||
9 | be filed before November 1 of each year and cover the 12 months | ||||||
10 | preceding July 1 of that year. | ||||||
11 | (b) Subject to subsection (c), the report under Section | ||||||
12 | 15-401 to be filed by business associations, utilities, and | ||||||
13 | life insurance companies must be filed before May 1 of each | ||||||
14 | year for the immediately preceding calendar year. | ||||||
15 | (c) Before the date for filing the report under Section | ||||||
16 | 15-401, the holder of property presumed abandoned may request | ||||||
17 | the administrator to extend the time for filing. The | ||||||
18 | administrator may grant an extension. If the extension is | ||||||
19 | granted, the holder may pay or make a partial payment of the | ||||||
20 | amount the holder estimates ultimately will be due. The payment | ||||||
21 | or partial payment terminates accrual of interest on the amount | ||||||
22 | paid.
| ||||||
23 | Section 15-404. Retention of records by holder. A holder | ||||||
24 | required to file a report under Section 15-401 shall retain |
| |||||||
| |||||||
1 | records for 10 years after the later of the date the report was | ||||||
2 | filed or the last date a timely report was due to be filed, | ||||||
3 | unless a shorter period is provided by rule of the | ||||||
4 | administrator. The holder may satisfy the requirement to retain | ||||||
5 | records under this Section through an agent. The records must | ||||||
6 | contain: | ||||||
7 | (1) the information required to be included in the | ||||||
8 | report; | ||||||
9 | (2) the date, place, and nature of the circumstances | ||||||
10 | that gave rise to the property right; | ||||||
11 | (3) the amount or value of the property; | ||||||
12 | (4) the last address of the apparent owner, if known to | ||||||
13 | the holder; | ||||||
14 | (5) sufficient records of items which were not reported | ||||||
15 | as unclaimed, to allow examination to determine whether the | ||||||
16 | holder has complied with the Act; and | ||||||
17 | (6) if the holder sells, issues, or provides to others | ||||||
18 | for sale or issue in this State traveler's checks, money | ||||||
19 | orders, or similar instruments, other than third-party | ||||||
20 | bank checks, on which the holder is directly liable, a | ||||||
21 | record of the instruments while they remain outstanding | ||||||
22 | indicating the state and date of issue.
| ||||||
23 | Section 15-405. Property reportable and payable or | ||||||
24 | deliverable absent owner demand. Property is reportable and | ||||||
25 | payable or deliverable under this Act even if the owner fails |
| |||||||
| |||||||
1 | to make demand or present an instrument or document otherwise | ||||||
2 | required to obtain payment.
| ||||||
3 | ARTICLE 5. NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED | ||||||
4 | ABANDONED | ||||||
5 | Section 15-501. Notice to apparent owner by holder. | ||||||
6 | (a) Subject to subsections (b) and (c), the holder of | ||||||
7 | property presumed abandoned shall send to the apparent owner | ||||||
8 | notice by first-class United States mail that complies with | ||||||
9 | Section 15-502 in a format acceptable to the administrator not | ||||||
10 | more than one year nor less than 60 days before filing the | ||||||
11 | report under Section 15-401 if: | ||||||
12 | (1) the holder has in its records an address for the | ||||||
13 | apparent owner which the holder's records do not disclose | ||||||
14 | to be invalid and is sufficient to direct the delivery of | ||||||
15 | first-class United States mail to the apparent owner; and | ||||||
16 | (2) the value of the property is $50 or more. | ||||||
17 | (b) If an apparent owner has consented to receive | ||||||
18 | electronic-mail delivery from the holder, the holder shall send | ||||||
19 | the notice described in subsection (a) both by first-class | ||||||
20 | United States mail to the apparent owner's last-known mailing | ||||||
21 | address and by electronic mail, unless the holder believes that | ||||||
22 | the apparent owner's electronic-mail address is invalid. | ||||||
23 | (c) The holder of securities presumed abandoned under | ||||||
24 | Sections 15-202, 15-203, or 15-208 shall send to the apparent |
| |||||||
| |||||||
1 | owner notice by certified United States mail that complies with | ||||||
2 | Section 15-502 in a format acceptable to the administrator not | ||||||
3 | less than 60 days before filing the report under Section 15-401 | ||||||
4 | if: | ||||||
5 | (1) the holder has in its records an address for the | ||||||
6 | apparent owner which the holder's records do not disclose | ||||||
7 | to be invalid and is sufficient to direct the delivery of | ||||||
8 | United States mail to the apparent owner; and | ||||||
9 | (2) the value of the property is $1,000 or more. | ||||||
10 | The administrator may issue rules allowing a holder to | ||||||
11 | deduct reasonable costs incurred in sending a notice by | ||||||
12 | certified United States mail under this subsection. | ||||||
13 | (d) In addition to other indications of an apparent owner's | ||||||
14 | interest in property pursuant to Section 15-210, a signed | ||||||
15 | return receipt in response to a notice sent pursuant to this | ||||||
16 | Section by certified United States mail shall constitute a | ||||||
17 | record communicated by the apparent owner to the holder | ||||||
18 | concerning the property or the account in which the property is | ||||||
19 | held.
| ||||||
20 | Section 15-502. Contents of notice by holder. | ||||||
21 | (a) Notice under Section 15-501 must contain a heading that | ||||||
22 | reads substantially as follows: "Notice. The State of Illinois | ||||||
23 | requires us to notify you that your property may be transferred | ||||||
24 | to the custody of the administrator if you do not contact us | ||||||
25 | before (insert date that is 30 days after the date of this |
| |||||||
| |||||||
1 | notice)." | ||||||
2 | (b) The notice under Section 15-501 must: | ||||||
3 | (1) identify the nature and, except for property that | ||||||
4 | does not have a fixed value, the value of the property that | ||||||
5 | is the subject of the notice; | ||||||
6 | (2) state that the property will be turned over to the | ||||||
7 | State Treasurer; | ||||||
8 | (3) state that after the property is turned over to the | ||||||
9 | State Treasurer an apparent owner that seeks return of the | ||||||
10 | property may file a claim with the administrator; | ||||||
11 | (4) state that property that is not legal tender of the | ||||||
12 | United States may be sold by the State Treasurer; | ||||||
13 | (5) provide instructions that the apparent owner must | ||||||
14 | follow to prevent the holder from reporting and paying or | ||||||
15 | delivering the property to the State Treasurer; and | ||||||
16 | (6) provide the name, address, and e-mail address or | ||||||
17 | telephone number to contact the holder. | ||||||
18 | (c) The holder may supplement the required information by | ||||||
19 | listing a website where apparent owners may obtain more | ||||||
20 | information about how to prevent the holder from reporting and | ||||||
21 | paying or delivering the property to the State Treasurer.
| ||||||
22 | Section 15-503. Notice by administrator. | ||||||
23 | (a) The administrator shall give notice to an apparent | ||||||
24 | owner that property presumed abandoned and appears to be owned | ||||||
25 | by the apparent owner is held by the administrator under this |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (b) In providing notice under subsection (a), the | ||||||
3 | administrator shall: | ||||||
4 | (1) except as otherwise provided in paragraph (2), send | ||||||
5 | written notice by first-class United States mail to each | ||||||
6 | apparent owner of property valued at $100 or more held by | ||||||
7 | the administrator, unless the administrator determines | ||||||
8 | that a mailing by first-class United States mail would not | ||||||
9 | be received by the apparent owner, and, in the case of a | ||||||
10 | security held in an account for which the apparent owner | ||||||
11 | had consented to receiving electronic mail from the holder, | ||||||
12 | send notice by electronic mail if the electronic-mail | ||||||
13 | address of the apparent owner is known to the administrator | ||||||
14 | instead of by first-class United States mail; or | ||||||
15 | (2) send the notice to the apparent owner's | ||||||
16 | electronic-mail address if the administrator does not have | ||||||
17 | a valid United States mail address for an apparent owner, | ||||||
18 | but has an electronic-mail address that the administrator | ||||||
19 | does not know to be invalid. | ||||||
20 | (c) In addition to the notice under subsection (b), the | ||||||
21 | administrator shall: | ||||||
22 | (1) publish every 6 months in at least one English | ||||||
23 | language newspaper of general circulation in each county in | ||||||
24 | this State notice of property held by the administrator | ||||||
25 | which must include: | ||||||
26 | (A) the total value of property received by the |
| |||||||
| |||||||
1 | administrator during the preceding 6-month period, | ||||||
2 | taken from the reports under Section 15-401; | ||||||
3 | (B) the total value of claims paid by the | ||||||
4 | administrator during the preceding 6-month period; | ||||||
5 | (C) the Internet web address of the unclaimed | ||||||
6 | property website maintained by the administrator; | ||||||
7 | (D) a telephone number and electronic-mail address | ||||||
8 | to contact the administrator to inquire about or claim | ||||||
9 | property; and | ||||||
10 | (E) a statement that a person may access the | ||||||
11 | Internet by a computer to search for unclaimed property | ||||||
12 | and a computer may be available as a service to the | ||||||
13 | public at a local public library. | ||||||
14 | (2) The administrator shall maintain a website | ||||||
15 | accessible by the public and electronically searchable | ||||||
16 | which contains the names reported to the administrator of | ||||||
17 | apparent owners for whom property is being held by the | ||||||
18 | administrator. The administrator need not list property on | ||||||
19 | such website when: no owner name was reported, a claim has | ||||||
20 | been initiated or is pending for the property, the | ||||||
21 | administrator has made direct contact with the apparent | ||||||
22 | owner of the property, and in other instances where the | ||||||
23 | administrator reasonably believes exclusion of the | ||||||
24 | property is in the best interests of both the State and the | ||||||
25 | owner of the property. | ||||||
26 | (d) The website or database maintained under subsection |
| |||||||
| |||||||
1 | (c)(2) must include instructions for filing with the | ||||||
2 | administrator a claim to property and a printable claim form | ||||||
3 | with instructions for its use. | ||||||
4 | (e) Tax return identification of apparent owners of | ||||||
5 | abandoned property. | ||||||
6 | (1) At least annually the administrator shall notify | ||||||
7 | the Department of Revenue of the names of persons appearing | ||||||
8 | to be owners of abandoned property under this Section. The | ||||||
9 | administrator shall also provide to the Department of | ||||||
10 | Revenue the social security numbers of the persons, if | ||||||
11 | available. | ||||||
12 | (2) The Department of Revenue shall notify the | ||||||
13 | administrator if any person under subsection (e)(1) has | ||||||
14 | filed an Illinois income tax return and shall provide the | ||||||
15 | administrator with the last known address of the person as | ||||||
16 | it appears in Department of Revenue records, except as | ||||||
17 | prohibited by federal law. The Department of Revenue may | ||||||
18 | also provide additional addresses for the same taxpayer | ||||||
19 | from the records of the Department, except as prohibited by | ||||||
20 | federal law. | ||||||
21 | (3) In order to facilitate the return of property under | ||||||
22 | this subsection, the administrator and the Department of | ||||||
23 | Revenue may enter into an interagency agreement concerning | ||||||
24 | protection of confidential information, data match rules, | ||||||
25 | and other issues. | ||||||
26 | (4) The administrator may deliver, as provided under |
| |||||||
| |||||||
1 | Section 15-904 of this Act, property or pay the amount | ||||||
2 | owing to a person matched under this Section without the | ||||||
3 | person filing a claim under Section 15-903 of this Act if | ||||||
4 | the following conditions are met: | ||||||
5 | (A) the value of the property that is owed the | ||||||
6 | person is $2,000 or less; | ||||||
7 | (B) the property is not either tangible property or | ||||||
8 | securities; | ||||||
9 | (C) the last known address for the person according | ||||||
10 | to the Department of Revenue records is less than 12 | ||||||
11 | months old; and | ||||||
12 | (D) the administrator has evidence sufficient to | ||||||
13 | establish that the person who appears in Department of | ||||||
14 | Revenue records is the owner of the property and the | ||||||
15 | owner currently resides at the last known address from | ||||||
16 | the Department of Revenue. | ||||||
17 | (5) If the value of the property that is owed the | ||||||
18 | person is greater than $2,000, or is tangible property or | ||||||
19 | securities the administrator shall provide notice to the | ||||||
20 | person, informing the person that he or she is the owner of | ||||||
21 | abandoned property held by the State and may file a claim | ||||||
22 | with the administrator for return of the property. | ||||||
23 | (f) The administrator may use additional databases to | ||||||
24 | verify the identity of the person and that the person currently | ||||||
25 | resides at the last known address. The administrator may | ||||||
26 | utilize publicly and commercially available databases to find |
| |||||||
| |||||||
1 | and update or add information for apparent owners of property | ||||||
2 | held by the administrator. | ||||||
3 | (g) In addition to giving notice under subsection (b), | ||||||
4 | publishing the information under subsection (c)(1) and | ||||||
5 | maintaining the website or database under subsection (c)(2), | ||||||
6 | the administrator may use other printed publication, | ||||||
7 | telecommunication, the Internet, or other media to inform the | ||||||
8 | public of the existence of unclaimed property held by the | ||||||
9 | administrator.
| ||||||
10 | Section 15-504. Cooperation among State officers and | ||||||
11 | agencies to locate apparent owner. Unless prohibited by law of | ||||||
12 | this State other than this Act, on request of the | ||||||
13 | administrator, each officer, agency, board, commission, | ||||||
14 | division, and department of this State, any body politic and | ||||||
15 | corporate created by this State for a public purpose, and each | ||||||
16 | political subdivision of this State shall make its books and | ||||||
17 | records available to the administrator and cooperate with the | ||||||
18 | administrator to determine the current address of an apparent | ||||||
19 | owner of property held by the administrator under this Act or | ||||||
20 | to otherwise assist the administrator in the administration of | ||||||
21 | this Act. The administrator may also enter into data sharing | ||||||
22 | agreements to enable such other governmental agencies to | ||||||
23 | provide an additional notice to apparent owners of property | ||||||
24 | held by the administrator.
|
| |||||||
| |||||||
1 | ARTICLE 6. TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR | ||||||
2 | Section 15-601. Definition of good faith. In this Article, | ||||||
3 | payment or delivery of property is made in good faith if a | ||||||
4 | holder: | ||||||
5 | (1) had a reasonable basis for believing, based on the | ||||||
6 | facts then known, that the property was required or | ||||||
7 | permitted to be paid or delivered to the administrator | ||||||
8 | under this Act; or | ||||||
9 | (2) made payment or delivery: | ||||||
10 | (A) in response to a demand by the administrator or | ||||||
11 | administrator's agent; or | ||||||
12 | (B) under a guidance or ruling issued by the | ||||||
13 | administrator which the holder reasonably believed | ||||||
14 | required or permitted the property to be paid or | ||||||
15 | delivered.
| ||||||
16 | Section 15-602. Dormancy charge. | ||||||
17 | (a) A holder may deduct a dormancy charge from property | ||||||
18 | required to be paid or delivered to the administrator if: | ||||||
19 | (1) a valid contract between the holder and the | ||||||
20 | apparent owner authorizes imposition of the charge for the | ||||||
21 | apparent owner's failure to claim the property within a | ||||||
22 | specified time; and | ||||||
23 | (2) the holder regularly imposes the charge and | ||||||
24 | regularly does not reverse or otherwise cancel the charge. |
| |||||||
| |||||||
1 | (b) The amount of the deduction under subsection (a) is | ||||||
2 | limited to an amount that is not unconscionable considering all | ||||||
3 | relevant factors, including the marginal transactional costs | ||||||
4 | incurred by the holder in maintaining the apparent owner's | ||||||
5 | property and any services received by the apparent owner. | ||||||
6 | (c) A holder may not deduct an escheat fee or other charges | ||||||
7 | imposed solely by virtue of property being reported as presumed | ||||||
8 | abandoned.
| ||||||
9 | Section 15-603. Payment or delivery of property to | ||||||
10 | administrator. | ||||||
11 | (a) Except as otherwise provided in this Section, on filing | ||||||
12 | a report under Section 15-401, the holder shall pay or deliver | ||||||
13 | to the administrator the property described in the report. | ||||||
14 | (b) If property in a report under Section 15-401 is an | ||||||
15 | automatically renewable deposit and a penalty or forfeiture in | ||||||
16 | the payment of interest would result from paying the deposit to | ||||||
17 | the administrator at the time of the report, the date for | ||||||
18 | payment of the property to the administrator is extended until | ||||||
19 | a penalty or forfeiture no longer would result from payment, if | ||||||
20 | the holder informs the administrator of the extended date. | ||||||
21 | (c) Tangible property in a safe-deposit box may not be | ||||||
22 | delivered to the administrator until a mutually agreed upon | ||||||
23 | date that is no sooner than 60 days after filing the report | ||||||
24 | under Section 15-401. | ||||||
25 | (d) If property reported to the administrator under Section |
| |||||||
| |||||||
1 | 15-401 is a security, the administrator may: | ||||||
2 | (1) make an endorsement, instruction, or entitlement | ||||||
3 | order on behalf of the apparent owner to invoke the duty of | ||||||
4 | the issuer, its transfer agent, or the securities | ||||||
5 | intermediary to transfer the security; or | ||||||
6 | (2) dispose of the security under Section 15-702. | ||||||
7 | (e) If the holder of property reported to the administrator | ||||||
8 | under Section 15-401 is the issuer of a certificated security, | ||||||
9 | the administrator may obtain a replacement certificate in | ||||||
10 | physical or book-entry form under Section 8-405 of the Uniform | ||||||
11 | Commercial Code. An indemnity bond is not required. | ||||||
12 | (f) The administrator shall establish procedures for the | ||||||
13 | registration, issuance, method of delivery, transfer, and | ||||||
14 | maintenance of securities delivered to the administrator by a | ||||||
15 | holder. | ||||||
16 | (g) An issuer, holder, and transfer agent or other person | ||||||
17 | acting in good faith under this Section under instructions of | ||||||
18 | and on behalf of the issuer or holder is not liable to the | ||||||
19 | apparent owner for a claim arising with respect to property | ||||||
20 | after the property has been delivered to the administrator. | ||||||
21 | (h) A holder is not required to deliver to the | ||||||
22 | administrator a security identified by the holder as a | ||||||
23 | non-freely transferable security in a report filed under | ||||||
24 | Section 15-401. If the administrator or holder determines that | ||||||
25 | a security is no longer a non-freely transferable security, the | ||||||
26 | holder shall report and deliver the security on the next |
| |||||||
| |||||||
1 | regular date prescribed for delivery of securities under this | ||||||
2 | Act. The holder shall make a determination annually whether a | ||||||
3 | security identified in a report filed under Section 15-401 as a | ||||||
4 | non-freely transferable security is no longer a non-freely | ||||||
5 | transferable security.
| ||||||
6 | Section 15-604. Effect of payment or delivery of property | ||||||
7 | to administrator. | ||||||
8 | (a) On payment or delivery of property to the administrator | ||||||
9 | under this Act, the administrator as agent for the State | ||||||
10 | assumes custody and responsibility for safekeeping the | ||||||
11 | property. A holder that pays or delivers property to the | ||||||
12 | administrator in good faith and substantially complies with | ||||||
13 | Sections 15-501 and 15-502 is relieved of all liability which | ||||||
14 | thereafter may arise or be made in respect to the property to | ||||||
15 | the extent of the value of the property so paid or delivered. | ||||||
16 | (b) If legal proceedings are instituted by any other state | ||||||
17 | or states in any state or federal court with respect to | ||||||
18 | unclaimed funds or abandoned property previously paid or | ||||||
19 | delivered to the administrator, the holder shall give written | ||||||
20 | notification to the administrator and the Attorney General of | ||||||
21 | this State of such proceedings within 10 days after service of | ||||||
22 | process, or in the alternative at least 10 days before the | ||||||
23 | return date or date on which an answer or similar pleading is | ||||||
24 | due (or any extension thereof secured by the holder). The | ||||||
25 | Attorney General may take such action as he or she deems |
| |||||||
| |||||||
1 | necessary or expedient to protect the interests of this State. | ||||||
2 | The Attorney General by written notice prior to the return date | ||||||
3 | or date on which an answer or similar pleading is due (or any | ||||||
4 | extension thereof secured by the holder), but in any event in | ||||||
5 | reasonably sufficient time for the holder to comply with the | ||||||
6 | directions received, shall either direct the holder actively to | ||||||
7 | defend in such proceedings or that no defense need be entered | ||||||
8 | in such proceedings. If a direction is received from the | ||||||
9 | Attorney General that the holder need not make a defense, such | ||||||
10 | shall not preclude the holder from entering a defense in its | ||||||
11 | own name if it should so choose. However, any defense made by | ||||||
12 | the holder on its own initiative shall not entitle the holder | ||||||
13 | to reimbursement for legal fees, costs and other expenses as is | ||||||
14 | hereinafter provided in respect to defenses made pursuant to | ||||||
15 | the directions of the Attorney General. If, after the holder | ||||||
16 | has actively defended in such proceedings pursuant to a | ||||||
17 | direction of the Attorney General, or has been notified in | ||||||
18 | writing by the Attorney General that no defense need be made | ||||||
19 | with respect to such funds, a judgment is entered against the | ||||||
20 | holder for any amount paid to the administrator under this Act, | ||||||
21 | the administrator shall, upon being furnished with proof of | ||||||
22 | payment in satisfaction of such judgment, reimburse the holder | ||||||
23 | the amount so paid. The administrator shall also reimburse the | ||||||
24 | holder for any legal fees, costs and other directly related | ||||||
25 | expenses incurred in legal proceedings undertaken pursuant to | ||||||
26 | the direction of the Attorney General.
|
| |||||||
| |||||||
1 | Section 15-605. Recovery of property by holder from | ||||||
2 | administrator. | ||||||
3 | (a) A holder that under this Act pays money to the | ||||||
4 | administrator may file a claim for reimbursement from the | ||||||
5 | administrator of the amount paid if the holder: | ||||||
6 | (1) paid the money in error; or | ||||||
7 | (2) after paying the money to the administrator, paid | ||||||
8 | money to a person the holder reasonably believed entitled | ||||||
9 | to the money. | ||||||
10 | (b) If a claim for reimbursement under subsection (a) is | ||||||
11 | made for a payment made on a negotiable instrument, including a | ||||||
12 | traveler's check, money order, or similar instrument, the | ||||||
13 | holder must submit proof that the instrument was presented and | ||||||
14 | payment was made to a person the holder reasonably believed | ||||||
15 | entitled to payment. The holder may claim reimbursement even if | ||||||
16 | the payment was made to a person whose claim was made after | ||||||
17 | expiration of a period of limitation on the owner's right to | ||||||
18 | receive or recover property, whether specified by contract, | ||||||
19 | statute, or court order. | ||||||
20 | (c) If a holder is reimbursed by the administrator under | ||||||
21 | subsection (a)(2), the holder may also recover from the | ||||||
22 | administrator income or gain under Section 15-607 that would | ||||||
23 | have been paid to the owner if the money had been claimed from | ||||||
24 | the administrator by the owner to the extent the income or gain | ||||||
25 | was paid by the holder to the owner. |
| |||||||
| |||||||
1 | (d) A holder that under this Act delivers property other | ||||||
2 | than money to the administrator may file a claim for return of | ||||||
3 | the property from the administrator if: | ||||||
4 | (1) the holder delivered the property in error; or | ||||||
5 | (2) the apparent owner has claimed the property from | ||||||
6 | the holder. | ||||||
7 | (e) If a claim for return of property under subsection (d) | ||||||
8 | is made, the holder shall include with the claim evidence | ||||||
9 | sufficient to establish that the apparent owner has claimed the | ||||||
10 | property from the holder or that the property was delivered by | ||||||
11 | the holder to the administrator in error. | ||||||
12 | (f) The administrator may determine that an affidavit | ||||||
13 | submitted by a holder is evidence sufficient to establish that | ||||||
14 | the holder is entitled to reimbursement or to recover property | ||||||
15 | under this Section. | ||||||
16 | (g) A holder is not required to pay a fee or other charge | ||||||
17 | for reimbursement or return of property under this Section. | ||||||
18 | (h) Unless extended for reasonable cause, not later than 90 | ||||||
19 | days after a holder's claim is complete the administrator shall | ||||||
20 | allow or deny the claim and give the holder notice in a record | ||||||
21 | of the decision. If a holder fails to provide all the | ||||||
22 | information and documentation requested by the administrator | ||||||
23 | as necessary to establish legal ownership of the property and | ||||||
24 | the claim is inactive for at least 90 days, then the | ||||||
25 | administrator may close the claim without issuing a final | ||||||
26 | decision. However, if the claimant makes a request in writing |
| |||||||
| |||||||
1 | for a final decision prior to the administrator's closing of | ||||||
2 | the claim, the administrator shall issue a final decision. A | ||||||
3 | claim will be considered complete when a holder has provided | ||||||
4 | all the information and documentation requested by the | ||||||
5 | administrator as necessary to establish legal ownership and | ||||||
6 | such information or documentation is entered into the | ||||||
7 | administrator's unclaimed property system. | ||||||
8 | (i) The claimant may initiate a proceeding under the | ||||||
9 | Illinois Administrative Procedure Act for review of the | ||||||
10 | administrator's decision or the deemed denial under subsection | ||||||
11 | (h) not later than: | ||||||
12 | (1) 30 days following receipt of the notice of the | ||||||
13 | administrator's decision; or | ||||||
14 | (2) 120 days following the filing of a claim under | ||||||
15 | subsection (a) or (d) in the case of a deemed denial under | ||||||
16 | subsection (h).
| ||||||
17 | Section 15-606. Property removed from safe-deposit box. | ||||||
18 | Property removed from a safe-deposit box and delivered under | ||||||
19 | this Act to the administrator under this Act is subject to the | ||||||
20 | holder's right to reimbursement for the cost of opening the box | ||||||
21 | and a lien or contract providing reimbursement to the holder | ||||||
22 | for unpaid rent charges for the box. Upon application by the | ||||||
23 | holder, after the sale of the property, and after deducting the | ||||||
24 | expense incurred by the administrator in selling the property, | ||||||
25 | the administrator shall reimburse the holder from the proceeds |
| |||||||
| |||||||
1 | remaining. The administrator shall promulgate administrative | ||||||
2 | rules concerning the reimbursement process under this Section.
| ||||||
3 | Section 15-607. Crediting income or gain to owner's | ||||||
4 | account. If property other than money is delivered to the | ||||||
5 | administrator, the owner is entitled to receive from the | ||||||
6 | administrator income or gain realized or accrued on the | ||||||
7 | property before the property is sold. Interest on money is not | ||||||
8 | payable to an owner for periods where the property is in the | ||||||
9 | possession of the administrator.
| ||||||
10 | Section 15-608. Administrator's options as to custody. | ||||||
11 | (a) The administrator may decline to take custody of | ||||||
12 | property reported under Section 15-401 if the administrator | ||||||
13 | determines that: | ||||||
14 | (1) the property has a value less than the estimated | ||||||
15 | expenses of notice and sale of the property; or | ||||||
16 | (2) taking custody of the property would be unlawful. | ||||||
17 | (b) A holder may pay or deliver property to the | ||||||
18 | administrator before the property is presumed abandoned under | ||||||
19 | this Act if the holder: | ||||||
20 | (1) provides the apparent owner of the property any | ||||||
21 | notice required by Section 15-501 and provides the | ||||||
22 | administrator evidence of the holder's compliance with | ||||||
23 | this paragraph; | ||||||
24 | (2) includes with the payment or delivery a report |
| |||||||
| |||||||
1 | regarding the property conforming to Section 15-402; and | ||||||
2 | (3) first obtains the administrator's consent in a | ||||||
3 | record to accept payment or delivery. | ||||||
4 | (c) A holder's request for the administrator's consent | ||||||
5 | under subsection (b)(3) must be in a record. If the | ||||||
6 | administrator fails to respond to the request not later than 30 | ||||||
7 | days after receipt of the request, the administrator is deemed | ||||||
8 | to consent to the payment or delivery of the property and the | ||||||
9 | payment or delivery is considered to have been made in good | ||||||
10 | faith. | ||||||
11 | (d) On payment or delivery of property under subsection | ||||||
12 | (b), the property is presumed abandoned.
| ||||||
13 | Section 15-609. Disposition of property having no | ||||||
14 | substantial value; immunity from liability. | ||||||
15 | (a) If the administrator takes custody of property | ||||||
16 | delivered under this Act and later determines that the property | ||||||
17 | has no substantial commercial value or that the cost of | ||||||
18 | disposing of the property will exceed the value of the | ||||||
19 | property, the administrator may return the property to the | ||||||
20 | holder or destroy or otherwise dispose of the property. | ||||||
21 | (b) An action or proceeding may not be commenced against | ||||||
22 | the State, an agency of the State, the administrator, another | ||||||
23 | officer, employee, or agent of the State, or a holder for or | ||||||
24 | because of an act of the administrator under this Section, | ||||||
25 | except for intentional misconduct or malfeasance.
|
| |||||||
| |||||||
1 | Section 15-610. Periods of limitation and repose. | ||||||
2 | (a) Expiration, before, on, or after the effective date of | ||||||
3 | this Act, of a period of limitation on an owner's right to | ||||||
4 | receive or recover property, whether specified by contract, | ||||||
5 | statute, or court order, does not prevent the property from | ||||||
6 | being presumed abandoned or affect the duty of a holder under | ||||||
7 | this Act to file a report or pay or deliver property to the | ||||||
8 | administrator. | ||||||
9 | (b) An action or proceeding may not be maintained by the | ||||||
10 | administrator to enforce this Act in regard to the reporting, | ||||||
11 | delivery, or payment of property more than 10 years after the | ||||||
12 | holder specifically identified the property in a report filed | ||||||
13 | with the administrator or gave express notice to the | ||||||
14 | administrator of a dispute regarding the property. In the | ||||||
15 | absence of such a report or other express notice, the period of | ||||||
16 | limitation is tolled. The period of limitation is also tolled | ||||||
17 | by the filing of a report that is fraudulent.
| ||||||
18 | ARTICLE 7. SALE OF PROPERTY BY ADMINISTRATOR | ||||||
19 | Section 15-701. Public sale of property. | ||||||
20 | (a) Subject to Section 15-702, not earlier than 3 years | ||||||
21 | after receipt of property presumed abandoned, the | ||||||
22 | administrator may sell the property. | ||||||
23 | (b) Before selling property under subsection (a), the |
| |||||||
| |||||||
1 | administrator shall give notice to the public of: | ||||||
2 | (1) the date of the sale; and | ||||||
3 | (2) a reasonable description of the property. | ||||||
4 | (c) A sale under subsection (a) must be to the highest | ||||||
5 | bidder: | ||||||
6 | (1) at public sale at a location in this State which | ||||||
7 | the administrator determines to be the most favorable | ||||||
8 | market for the property; | ||||||
9 | (2) on the Internet; or | ||||||
10 | (3) on another forum the administrator determines is | ||||||
11 | likely to yield the highest net proceeds of sale. | ||||||
12 | (d) The administrator may decline the highest bid at a sale | ||||||
13 | under this Section and reoffer the property for sale if the | ||||||
14 | administrator determines the highest bid is insufficient. | ||||||
15 | (e) If a sale held under this Section is to be conducted | ||||||
16 | other than on the Internet, the administrator must cause to be | ||||||
17 | published at least one notice of the sale, at least 2 weeks but | ||||||
18 | not more than 5 weeks before the sale, in a newspaper of | ||||||
19 | general circulation in the county in which the property is to | ||||||
20 | be sold. For purposes of this subsection, the reasonable | ||||||
21 | description of property to be sold required by subsection (b) | ||||||
22 | above may be satisfied by posting such information on the | ||||||
23 | administrator's website so long as the newspaper notice | ||||||
24 | includes the website address where such information is posted. | ||||||
25 | (f) Property eligible for sale will not be sold when a | ||||||
26 | claim has been filed with the administrator by an apparent |
| |||||||
| |||||||
1 | owner, heir, or agent. However, upon approval of a claim, the | ||||||
2 | owner, heir or, agent may request the administrator to dispose | ||||||
3 | of the property by sale and remit the net proceeds to the | ||||||
4 | owner, heir, or agent. Upon disapproval of the claim, the | ||||||
5 | administrator may dispose of the property by sale.
| ||||||
6 | Section 15-702. Disposal of securities. | ||||||
7 | (a) The administrator may not sell or otherwise liquidate a | ||||||
8 | security until 3 years after the administrator receives the | ||||||
9 | security and gives the apparent owner notice under Section | ||||||
10 | 15-503 that the administrator holds the security unless the | ||||||
11 | administrator determines it would be in the best interests of | ||||||
12 | the owner for the sale to occur prior to the expiration of the | ||||||
13 | 3-year period after the administrator receives the security and | ||||||
14 | gives the apparent owner notice under Section 15-503. The | ||||||
15 | administrator shall by administrative rule provide examples of | ||||||
16 | situations where it would be in the best interests of the owner | ||||||
17 | for the sale to occur prior to the expiration of the 3-year | ||||||
18 | period. | ||||||
19 | (b) The administrator may not sell a security listed on an | ||||||
20 | established stock exchange for less than the price prevailing | ||||||
21 | on the exchange at the time of sale. The administrator may sell | ||||||
22 | a security not listed on an established exchange by any | ||||||
23 | commercially reasonable method.
| ||||||
24 | Section 15-703. Recovery of securities or value by owner. |
| |||||||
| |||||||
1 | (a) If the administrator sells a security before the | ||||||
2 | expiration of 3 years after delivery of the security to the | ||||||
3 | administrator, an apparent owner that files a valid claim under | ||||||
4 | this Act of ownership of the security before the 3-year period | ||||||
5 | expires is entitled, at the option of the owner, to receive: | ||||||
6 | (1) replacement of the security; | ||||||
7 | (2) the market value of the security at the time the | ||||||
8 | claim is filed, plus dividends, interest, and other | ||||||
9 | increments on the security up to the time the claim is | ||||||
10 | paid; or | ||||||
11 | (3) the net proceeds of the sale of the security, plus | ||||||
12 | dividends, interest, and other increments on the security | ||||||
13 | up to the time the security was sold. | ||||||
14 | (b) Replacement of the security or calculation of market | ||||||
15 | value under subsection (a) must take into account a stock | ||||||
16 | split, reverse stock split, stock dividend, or similar | ||||||
17 | corporate action. | ||||||
18 | (c) A person that makes a valid claim under this Act of | ||||||
19 | ownership of a security after expiration of 3 years after | ||||||
20 | delivery of the security to the administrator is entitled to | ||||||
21 | receive: | ||||||
22 | (1) the security the holder delivered to the | ||||||
23 | administrator, if it is in the custody of the | ||||||
24 | administrator, plus dividends, interest, and other | ||||||
25 | increments on the security up to the time the administrator | ||||||
26 | delivers the security to the person; or |
| |||||||
| |||||||
1 | (2) the net proceeds of the sale of the security, plus | ||||||
2 | dividends, interest, and other increments on the security | ||||||
3 | up to the time the security was sold. | ||||||
4 | (d) Securities eligible for sale will not be sold when a | ||||||
5 | claim has been filed with the administrator by an apparent | ||||||
6 | owner, heir, or agent. However, upon approval of a claim, the | ||||||
7 | owner, heir or, agent may request the administrator to dispose | ||||||
8 | of the securities by sale and remit the net proceeds to the | ||||||
9 | owner, heir, or agent. Upon disapproval of the claim, the | ||||||
10 | administrator may dispose of the securities by sale.
| ||||||
11 | Section 15-704. Purchaser owns property after sale. A | ||||||
12 | purchaser of property at a sale conducted by the administrator | ||||||
13 | under this Act takes the property free of all claims of the | ||||||
14 | owner, a previous holder, or a person claiming through the | ||||||
15 | owner or holder. The administrator shall execute documents | ||||||
16 | necessary to complete the transfer of ownership to the | ||||||
17 | purchaser.
| ||||||
18 | Section 15-705. Exceptions to the sale of tangible | ||||||
19 | property. The administrator shall dispose of tangible property | ||||||
20 | identified by this Section in accordance with this Section. | ||||||
21 | (a) Military medals or decorations. The administrator may | ||||||
22 | not sell a medal or decoration awarded for military service in | ||||||
23 | the armed forces of the United States. Instead, the | ||||||
24 | administrator, with the consent of the respective organization |
| |||||||
| |||||||
1 | under paragraph (1), agency under paragraph (2), or entity | ||||||
2 | under paragraph (3), may deliver a medal or decoration to be | ||||||
3 | held in custody for the owner, to: | ||||||
4 | (1) a military veterans organization qualified under | ||||||
5 | Section 501(c)(19) of the Internal Revenue Code; | ||||||
6 | (2) the agency that awarded the medal or decoration; or | ||||||
7 | (3) a governmental entity. | ||||||
8 | After delivery, the administrator is not responsible for | ||||||
9 | the safekeeping of the medal or decoration. | ||||||
10 | (b) Property with historical value. Property that the | ||||||
11 | administrator reasonably believes may have historical value | ||||||
12 | may be, at his or her discretion, loaned to an accredited | ||||||
13 | museum in the United States where it will be kept until such | ||||||
14 | time as the administrator orders it to be returned to his or | ||||||
15 | her custody. | ||||||
16 | (c) Human remains. If human remains are delivered to the | ||||||
17 | administrator under this Act, the administrator shall deliver | ||||||
18 | those human remains to the coroner of the county in which the | ||||||
19 | human remains were abandoned for disposition under Section | ||||||
20 | 3-3034 of the Counties Code. The only human remains that may be | ||||||
21 | delivered to the administrator under this Act and that the | ||||||
22 | administrator may receive are those that are reported and | ||||||
23 | delivered as contents of a safe deposit box. | ||||||
24 | (d) Evidence in a criminal investigation. Property that may | ||||||
25 | have been used in the commission of a crime or that may assist | ||||||
26 | in the investigation of a crime, as determined after consulting |
| |||||||
| |||||||
1 | with the Department of State Police, shall be delivered to the | ||||||
2 | Department of State Police or other appropriate law enforcement | ||||||
3 | authority to allow law enforcement to determine whether a | ||||||
4 | criminal investigation should take place. Any such property | ||||||
5 | delivered to a law enforcement authority shall be held in | ||||||
6 | accordance with existing statutes and rules related to the | ||||||
7 | gathering, retention, and release of evidence. | ||||||
8 | (e) Firearms. | ||||||
9 | (1) The administrator, in cooperation with the | ||||||
10 | Department of State Police, shall develop a procedure to | ||||||
11 | determine whether a firearm delivered to the administrator | ||||||
12 | under this Act has been stolen or used in the commission of | ||||||
13 | a crime. The Department of State Police shall determine the | ||||||
14 | appropriate disposition of a firearm that has been stolen | ||||||
15 | or used in the commission of a crime. The administrator | ||||||
16 | shall attempt to return a firearm that has not been stolen | ||||||
17 | or used in the commission of a crime to the rightful owner | ||||||
18 | if the Department of State Police determines that the owner | ||||||
19 | may lawfully possess the firearm. | ||||||
20 | (2) If the administrator is unable to return a firearm | ||||||
21 | to its owner, the administrator shall transfer custody of | ||||||
22 | the firearm to the Department of State Police. Legal title | ||||||
23 | to a firearm transferred to the Department of State Police | ||||||
24 | under this subsection (e) is vested in the Department of | ||||||
25 | State Police by operation of law if: | ||||||
26 | (i) the administrator cannot locate the owner of |
| |||||||
| |||||||
1 | the firearm; | ||||||
2 | (ii) the owner of the firearm may not lawfully | ||||||
3 | possess the firearm; | ||||||
4 | (iii) the apparent owner does not respond to notice | ||||||
5 | published under Section 15-503 of this Act; or | ||||||
6 | (iv) the apparent owner responds to notice | ||||||
7 | published under Section 15-502 and states that he or | ||||||
8 | she no longer claims an interest in the firearm. | ||||||
9 | (3) With respect to a firearm whose title is | ||||||
10 | transferred to the Department of State Police under this | ||||||
11 | subsection (e), the Department of State Police may: | ||||||
12 | (i) retain the firearm for use by the crime | ||||||
13 | laboratory system, for training purposes, or for | ||||||
14 | any other application as deemed appropriate by the | ||||||
15 | Department; | ||||||
16 | (ii) transfer the firearm to the Illinois | ||||||
17 | State Museum if the firearm has historical value; | ||||||
18 | or | ||||||
19 | (iii) destroy the firearm if it is not retained | ||||||
20 | pursuant to subparagraph (i) or transferred | ||||||
21 | pursuant to subparagraph (ii). | ||||||
22 | As used in this subsection, "firearm" has the meaning | ||||||
23 | provided in the Firearm Owners Identification Card Act.
| ||||||
24 | ARTICLE 8. ADMINISTRATION OF PROPERTY |
| |||||||
| |||||||
1 | Section 15-801. Deposit of funds by administrator. | ||||||
2 | (a) Except as otherwise provided in this Section, the | ||||||
3 | administrator shall deposit in the Unclaimed Property Trust | ||||||
4 | Fund all funds received under this Act, including proceeds from | ||||||
5 | the sale of property under Article 7. The administrator may | ||||||
6 | deposit any amount in the Unclaimed Property Trust Fund into | ||||||
7 | the State Pensions Fund during the fiscal year at his or her | ||||||
8 | discretion; however, he or she shall, on April 15 and October | ||||||
9 | 15 of each year, deposit any amount in the Unclaimed Property | ||||||
10 | Trust Fund exceeding $2,500,000 into the State Pensions Fund. | ||||||
11 | If on either April 15 or October 15, the administrator | ||||||
12 | determines that a balance of $2,500,000 is insufficient for the | ||||||
13 | prompt payment of unclaimed property claims authorized under | ||||||
14 | this Act, the administrator may retain more than $2,500,000 in | ||||||
15 | the Unclaimed Property Trust Fund in order to ensure the prompt | ||||||
16 | payment of claims. Beginning in State fiscal year 2018, all | ||||||
17 | amounts that are deposited into the State Pensions Fund from | ||||||
18 | the Unclaimed Property Trust Fund shall be apportioned to the | ||||||
19 | designated retirement systems as provided in subsection (c-6) | ||||||
20 | of Section 8.12 of the State Finance Act to reduce their | ||||||
21 | actuarial reserve deficiencies. | ||||||
22 | (b) The administrator shall make prompt payment of claims | ||||||
23 | he or she duly allows as provided for in this Act from the | ||||||
24 | Unclaimed Property Trust Fund. This shall constitute an | ||||||
25 | irrevocable and continuing appropriation of all amounts in the | ||||||
26 | Unclaimed Property Trust Fund necessary to make prompt payment |
| |||||||
| |||||||
1 | of claims duly allowed by the administrator pursuant to this | ||||||
2 | Act.
| ||||||
3 | Section 15-802. Administrator to retain records of | ||||||
4 | property. The administrator shall: | ||||||
5 | (1) record and retain the name and last-known address | ||||||
6 | of each person shown on a report filed under Section 15-401 | ||||||
7 | to be the apparent owner of property delivered to the | ||||||
8 | administrator; | ||||||
9 | (2) record and retain the name and last-known address | ||||||
10 | of each insured or annuitant and beneficiary shown on the | ||||||
11 | report; | ||||||
12 | (3) for each policy of insurance or annuity contract | ||||||
13 | listed in the report of an insurance company, record and | ||||||
14 | retain the policy or account number, the name of the | ||||||
15 | company, and the amount due or paid shown on the report; | ||||||
16 | (4) for each apparent owner listed in the report, | ||||||
17 | record and retain the name of the holder that filed the | ||||||
18 | report and the amount due or paid; and | ||||||
19 | (5) maintain records sufficient to indicate the filing | ||||||
20 | of reports required under Section 15-401 and the payment or | ||||||
21 | delivery of property to the administrator under Section | ||||||
22 | 15-603. | ||||||
23 | Records created or maintained pursuant to this Section are | ||||||
24 | subject to the requirements of the Illinois State Records Act.
|
| |||||||
| |||||||
1 | Section 15-803. Expenses and service charges of | ||||||
2 | administrator. Before making a deposit of funds received under | ||||||
3 | this Act to the Unclaimed Property Trust Fund, the | ||||||
4 | administrator may deduct expenses incurred in examining | ||||||
5 | records of or collecting property from a putative holder or | ||||||
6 | holder as provided in the State Officers and Employees Money | ||||||
7 | Disposition Act.
| ||||||
8 | Section 15-804. Administrator holds property as custodian | ||||||
9 | for owner. Upon the payment or delivery of abandoned property | ||||||
10 | to the administrator, the State shall assume custody and shall | ||||||
11 | be responsible for the safekeeping thereof.
| ||||||
12 | ARTICLE 9. CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR | ||||||
13 | Section 15-901. Claim of another state to recover property. | ||||||
14 | (a) If the administrator knows that property held by the | ||||||
15 | administrator under this Act is subject to a superior claim of | ||||||
16 | another state, the administrator shall: | ||||||
17 | (1) report and pay or deliver the property to the other | ||||||
18 | state; or | ||||||
19 | (2) return the property to the holder so that the | ||||||
20 | holder may pay or deliver the property to the other state. | ||||||
21 | (b) The administrator is not required to enter into an | ||||||
22 | agreement to transfer property to the other state under | ||||||
23 | subsection (a).
|
| |||||||
| |||||||
1 | Section 15-902. Property subject to recovery by another | ||||||
2 | state. | ||||||
3 | (a) Property held under this Act by the administrator is | ||||||
4 | subject to the right of another state to take custody of the | ||||||
5 | property if: | ||||||
6 | (1) the property was paid or delivered to the | ||||||
7 | administrator because the records of the holder did not | ||||||
8 | reflect a last-known address in the other state of the | ||||||
9 | apparent owner and: | ||||||
10 | (A) the other state establishes that the | ||||||
11 | last-known address of the apparent owner or other | ||||||
12 | person entitled to the property was in the other state; | ||||||
13 | or | ||||||
14 | (B) under the law of the other state, the property | ||||||
15 | has become subject to a claim by the other state of | ||||||
16 | abandonment; | ||||||
17 | (2) the records of the holder did not accurately | ||||||
18 | identify the owner of the property, the last-known address | ||||||
19 | of the owner was in another state, and, under the law of | ||||||
20 | the other state, the property has become subject to a claim | ||||||
21 | by the other state of abandonment; | ||||||
22 | (3) the property was subject to the custody of the | ||||||
23 | administrator of this State under Section 15-305 and, under | ||||||
24 | the law of the state of domicile of the holder, the | ||||||
25 | property has become subject to a claim by the state of |
| |||||||
| |||||||
1 | domicile of the holder of abandonment; or | ||||||
2 | (4) the property: | ||||||
3 | (A) is a sum payable on a traveler's check, money | ||||||
4 | order, or similar instrument that was purchased in the | ||||||
5 | other state and delivered to the administrator under | ||||||
6 | Section 15-306; and | ||||||
7 | (B) under the law of the other state, has become | ||||||
8 | subject to a claim by the other state of abandonment. | ||||||
9 | (b) A claim by another state to recover property under this | ||||||
10 | Section must be presented in a form prescribed by the | ||||||
11 | administrator, unless the administrator waives presentation of | ||||||
12 | the form. | ||||||
13 | (c) The administrator shall decide a claim under this | ||||||
14 | Section not later than 90 days after it is presented. If the | ||||||
15 | administrator determines that the other state is entitled under | ||||||
16 | subsection (a) to custody of the property, the administrator | ||||||
17 | shall allow the claim and pay or deliver the property to the | ||||||
18 | other state. | ||||||
19 | (d) The administrator may require another state, before | ||||||
20 | recovering property under this Section, to agree to indemnify | ||||||
21 | this State and its agents, officers and employees against any | ||||||
22 | liability on a claim to the property.
| ||||||
23 | Section 15-903. Claim for property by person claiming to be | ||||||
24 | owner. | ||||||
25 | (a) A person claiming to be the owner of property held |
| |||||||
| |||||||
1 | under this Act by the administrator or to the proceeds from the | ||||||
2 | sale thereof may file a claim for the property on a form | ||||||
3 | prescribed by the administrator. The claimant must verify the | ||||||
4 | claim as to its completeness and accuracy. | ||||||
5 | (b) The administrator may waive the requirement in | ||||||
6 | subsection (a) and may pay or deliver property directly to a | ||||||
7 | person if: | ||||||
8 | (1) the person receiving the property or payment is | ||||||
9 | shown to be the apparent owner included on a report filed | ||||||
10 | under Section 15-401; | ||||||
11 | (2) the administrator reasonably believes the person | ||||||
12 | is entitled to receive the property or payment; and | ||||||
13 | (3) the property has a value of less than $500. | ||||||
14 | (c) The administrator may change the maximum value in | ||||||
15 | subsection (b) by administrative rule.
| ||||||
16 | Section 15-904. When administrator must honor claim for | ||||||
17 | property. | ||||||
18 | (a) The administrator shall pay or deliver property to a | ||||||
19 | claimant under subsection (a) of Section 15-903 if the | ||||||
20 | administrator receives evidence sufficient to establish to the | ||||||
21 | satisfaction of the administrator that the claimant is the | ||||||
22 | owner of the property. | ||||||
23 | (b) A claim will be considered complete when a claimant has | ||||||
24 | provided all the information and documentation requested by the | ||||||
25 | administrator as necessary to establish legal ownership and |
| |||||||
| |||||||
1 | such information or documentation is entered into the | ||||||
2 | administrator's unclaimed property system. Unless extended for | ||||||
3 | reasonable cause, not later than 90 days after a claim is | ||||||
4 | complete the administrator shall allow or deny the claim and | ||||||
5 | give the claimant notice in a record of the decision. If a | ||||||
6 | claimant fails to provide all the information and documentation | ||||||
7 | requested by the administrator as necessary to establish legal | ||||||
8 | ownership of the property and the claim is inactive for at | ||||||
9 | least 90 days, then the administrator may close the claim | ||||||
10 | without issuing a final decision. However, if the claimant | ||||||
11 | makes a request in writing for a final decision prior to the | ||||||
12 | administrator's closing of the claim, the administrator shall | ||||||
13 | issue a final decision. | ||||||
14 | (c) If the claim is denied or there is insufficient | ||||||
15 | evidence to allow the claim under subsection (b): | ||||||
16 | (1) the administrator shall inform the claimant of the | ||||||
17 | reason for the denial and may specify what additional | ||||||
18 | evidence, if any, is required for the claim to be allowed; | ||||||
19 | (2) the claimant may file an amended claim with the | ||||||
20 | administrator or commence an action under Section 15-906; | ||||||
21 | and | ||||||
22 | (3) the administrator shall consider an amended claim | ||||||
23 | filed under paragraph (2) as an initial claim.
| ||||||
24 | Section 15-905. Allowance of claim for property. | ||||||
25 | (a) The administrator shall pay or deliver to the owner the |
| |||||||
| |||||||
1 | property or pay to the owner the net proceeds of a sale of the | ||||||
2 | property, together with income or gain to which the owner is | ||||||
3 | entitled under Section 15-607. On request of the owner, the | ||||||
4 | administrator may sell or liquidate property and pay the net | ||||||
5 | proceeds to the owner, even if the property had been held by | ||||||
6 | the administrator for less than 3 years or the administrator | ||||||
7 | has not complied with the notice requirements under Section | ||||||
8 | 15-503. | ||||||
9 | (b) Property held under this Act by the administrator is | ||||||
10 | subject to offset under Section 10.05 of the State Comptroller | ||||||
11 | Act.
| ||||||
12 | Section 15-906. Action by person whose claim is denied. Not | ||||||
13 | later than one year after filing a claim under subsection (a) | ||||||
14 | of Section 15-903, the claimant may commence a contested case | ||||||
15 | pursuant to the Illinois Administrative Procedure Act to | ||||||
16 | establish a claim by the preponderance of the evidence after | ||||||
17 | either receiving notice under subsection (b) of Section 15-903 | ||||||
18 | or the claim is deemed denied under subsection (d) of Section | ||||||
19 | 15-903.
| ||||||
20 | ARTICLE 10. VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS | ||||||
21 | Section 15-1001. Verified report of property. If a person | ||||||
22 | does not file a report required by Section 15-401 or the | ||||||
23 | administrator believes that a person may have filed an |
| |||||||
| |||||||
1 | inaccurate, incomplete, or false report, the administrator may | ||||||
2 | require the person to file a verified report in a form | ||||||
3 | prescribed by the administrator. The verified report must: | ||||||
4 | (1) state whether the person is holding property | ||||||
5 | reportable under this Act; | ||||||
6 | (2) describe property not previously reported or about | ||||||
7 | which the administrator has inquired; | ||||||
8 | (3) specifically identify property described under | ||||||
9 | paragraph (2) about which there is a dispute whether it is | ||||||
10 | reportable under this Act; and | ||||||
11 | (4) state the amount or value of the property.
| ||||||
12 | Section 15-1002. Examination of records to determine | ||||||
13 | compliance. The administrator, at reasonable times and on | ||||||
14 | reasonable notice, may: | ||||||
15 | (1) examine the records of any person to determine | ||||||
16 | whether the person has complied with this Act even if the | ||||||
17 | person believes it is not in possession of any property | ||||||
18 | that must be reported, paid, or delivered under this Act; | ||||||
19 | (2) issue an administrative subpoena requiring the | ||||||
20 | person or agent of the person to make records available for | ||||||
21 | examination; and | ||||||
22 | (3) bring an action seeking judicial enforcement of the | ||||||
23 | subpoena.
| ||||||
24 | Section 15-1002.1. Examination of State-regulated |
| |||||||
| |||||||
1 | financial institutions. | ||||||
2 | (a) Notwithstanding Section 15-1002 of this Act, for any | ||||||
3 | financial organization for which the Department of Financial | ||||||
4 | and Professional Regulation is the primary prudential | ||||||
5 | regulator, the administrator shall not examine such financial | ||||||
6 | institution unless the administrator has consulted with the | ||||||
7 | Secretary of Financial and Professional Regulation and the | ||||||
8 | Department of Financial and Professional Regulation has not | ||||||
9 | examined such financial organization for compliance with this | ||||||
10 | Act within the past 5 years. The Secretary of Financial and | ||||||
11 | Professional Regulation may waive in writing the provisions of | ||||||
12 | this subsection (a) in order to permit the administrator to | ||||||
13 | examine a financial organization or group of financial | ||||||
14 | organizations for compliance with this Act. | ||||||
15 | (b) Nothing in this Section shall be construed to prohibit | ||||||
16 | the administrator from examining a financial organization for | ||||||
17 | which the Department of Financial and Professional Regulation | ||||||
18 | is not the primary prudential regulator. Further, nothing is | ||||||
19 | this Act shall be construed to limit the authority of the | ||||||
20 | Department of Financial and Professional Regulation to examine | ||||||
21 | financial organizations.
| ||||||
22 | Section 15-1003. Rules for conducting examination. | ||||||
23 | (a) The administrator shall adopt rules governing | ||||||
24 | procedures and standards for an examination under Section | ||||||
25 | 15-1002; the rules may reference any standards concerning |
| |||||||
| |||||||
1 | unclaimed property examinations promulgated by the National | ||||||
2 | Association of Unclaimed Property Administrators and shall | ||||||
3 | make provisions for multi-state examinations. | ||||||
4 | (b) After the adoption of rules under subsection (a), an | ||||||
5 | examination under Section 15-1002 must be performed under the | ||||||
6 | rules adopted under subsection (a). | ||||||
7 | (c) If a person subject to examination under Section | ||||||
8 | 15-1002 has filed the reports required under Section 15-401 and | ||||||
9 | Section 15-1001 and has retained the records required by | ||||||
10 | Section 15-404, the following rules apply: | ||||||
11 | (1) The examination must include a review of the | ||||||
12 | person's records. | ||||||
13 | (2) The examination may not be based on an estimate | ||||||
14 | unless the person expressly consents in a record to the use | ||||||
15 | of an estimate. | ||||||
16 | (3) The person conducting the examination shall | ||||||
17 | consider the evidence presented in good faith by the person | ||||||
18 | in preparing the findings of the examination under Section | ||||||
19 | 15-1007.
| ||||||
20 | Section 15-1004. Records obtained in examination. Records | ||||||
21 | obtained and records, including work papers, compiled by the | ||||||
22 | administrator in the course of conducting an examination under | ||||||
23 | Section 15-1002: | ||||||
24 | (1) are subject to the confidentiality and security | ||||||
25 | provisions of Article 14 and are exempt from disclosure |
| |||||||
| |||||||
1 | under the Freedom of Information Act; | ||||||
2 | (2) may be used by the administrator in an action to | ||||||
3 | collect property or otherwise enforce this Act; | ||||||
4 | (3) may be used in a joint examination conducted with | ||||||
5 | another state, the United States, a foreign country or | ||||||
6 | subordinate unit of a foreign country, or any other | ||||||
7 | governmental entity if the governmental entity conducting | ||||||
8 | the examination is legally bound to maintain the | ||||||
9 | confidentiality and security of information obtained from | ||||||
10 | a person subject to examination in a manner substantially | ||||||
11 | equivalent to Article 14; | ||||||
12 | (4) may be disclosed, on request, to the person that | ||||||
13 | administers the unclaimed property law of another state for | ||||||
14 | that state's use in circumstances equivalent to | ||||||
15 | circumstances described in this Article, if the other state | ||||||
16 | is required to maintain the confidentiality and security of | ||||||
17 | information obtained in a manner substantially equivalent | ||||||
18 | to Article 14; | ||||||
19 | (5) must be produced by the administrator under an | ||||||
20 | administrative or judicial subpoena or administrative or | ||||||
21 | court order; and | ||||||
22 | (6) must be produced by the administrator on request of | ||||||
23 | the person subject to the examination in an administrative | ||||||
24 | or judicial proceeding relating to the property.
| ||||||
25 | Section 15-1005. Evidence of unpaid debt or undischarged |
| |||||||
| |||||||
1 | obligation. | ||||||
2 | (a) A record of a putative holder showing an unpaid debt or | ||||||
3 | undischarged obligation is prima facie evidence of the debt or | ||||||
4 | obligation. | ||||||
5 | (b) A putative holder may establish by a preponderance of | ||||||
6 | the evidence that there is no unpaid debt or undischarged | ||||||
7 | obligation for a debt or obligation described in subsection (a) | ||||||
8 | or that the debt or obligation was not, or no longer is, a | ||||||
9 | fixed and certain obligation of the putative holder. | ||||||
10 | (c) A putative holder may overcome prima facie evidence | ||||||
11 | under subsection (a) by establishing by a preponderance of the | ||||||
12 | evidence that a check, draft, or similar instrument was: | ||||||
13 | (1) issued as an unaccepted offer in settlement of an | ||||||
14 | unliquidated amount; | ||||||
15 | (2) issued but later was replaced with another | ||||||
16 | instrument because the earlier instrument was lost or | ||||||
17 | contained an error that was corrected; | ||||||
18 | (3) issued to a party affiliated with the issuer; | ||||||
19 | (4) paid, satisfied, or discharged; | ||||||
20 | (5) issued in error; | ||||||
21 | (6) issued without consideration; | ||||||
22 | (7) issued but there was a failure of consideration; | ||||||
23 | (8) voided not later than 90 days after issuance for a | ||||||
24 | valid business reason set forth in a contemporaneous | ||||||
25 | record; or | ||||||
26 | (9) issued but not delivered to the third-party payee |
| |||||||
| |||||||
1 | for a sufficient reason recorded within a reasonable time | ||||||
2 | after issuance. | ||||||
3 | (d) In asserting a defense under this Section, and subject | ||||||
4 | to the records retention requirements of Section 15-404, a | ||||||
5 | putative holder may present evidence of a course of dealing | ||||||
6 | between the putative holder and the apparent owner.
| ||||||
7 | Section 15-1006. Failure of person examined to retain | ||||||
8 | records. If a person subject to examination under Section | ||||||
9 | 15-1002 does not retain the records required by Section 15-404, | ||||||
10 | the administrator may determine the value of property due using | ||||||
11 | a reasonable method of estimation based on all information | ||||||
12 | available to the administrator, including extrapolation and | ||||||
13 | use of statistical sampling when appropriate and necessary, | ||||||
14 | consistent with examination procedures and standards adopted | ||||||
15 | under Section 15-1003. A payment made based on estimation under | ||||||
16 | this Section is a penalty for failure to maintain the records | ||||||
17 | required by Section 15-404 and does not relieve a person from | ||||||
18 | an obligation to report and deliver property to a State in | ||||||
19 | which the holder is domiciled.
| ||||||
20 | Section 15-1007. Report to person whose records were | ||||||
21 | examined. At the conclusion of an examination under Section | ||||||
22 | 15-1002, unless waived in writing by the person being examined, | ||||||
23 | the administrator shall provide to the person whose records | ||||||
24 | were examined a report that specifies: |
| |||||||
| |||||||
1 | (1) the work performed; | ||||||
2 | (2) the property types reviewed; | ||||||
3 | (3) the methodology of any estimation technique, | ||||||
4 | extrapolation, or statistical sampling used in conducting | ||||||
5 | the examination; | ||||||
6 | (4) each calculation showing the value of property | ||||||
7 | determined to be due; and | ||||||
8 | (5) the findings of the person conducting the | ||||||
9 | examination.
| ||||||
10 | Section 15-1008. Informal conference during examination. | ||||||
11 | (a) If a person subject to examination under Section | ||||||
12 | 15-1002 believes the person conducting the examination has made | ||||||
13 | an unreasonable or unauthorized request or is not proceeding | ||||||
14 | expeditiously to complete the examination, the person in a | ||||||
15 | record may request an informal conference with the | ||||||
16 | administrator. | ||||||
17 | (b) If a person in a record requests an informal conference | ||||||
18 | with the administrator, the administrator shall hold the | ||||||
19 | informal conference not later than 30 days after receiving the | ||||||
20 | request. For good cause, and after notice in a record to the | ||||||
21 | person requesting an informal conference, the administrator | ||||||
22 | may extend the time for the holding of an informal conference. | ||||||
23 | The administrator may hold the informal conference in person, | ||||||
24 | by telephone, or by electronic means. | ||||||
25 | (c) If an informal conference is held under subsection (b), |
| |||||||
| |||||||
1 | not later than 30 days after the conference ends, the | ||||||
2 | administrator shall provide a response to the person that | ||||||
3 | requested the conference. | ||||||
4 | (d) The administrator may deny a request for an informal | ||||||
5 | conference under this Section if the administrator reasonably | ||||||
6 | believes that the request was made in bad faith or primarily to | ||||||
7 | delay the examination. If the administrator denies a request | ||||||
8 | for an informal conference the denial shall be in a record | ||||||
9 | provided to the person requesting the informal conference.
| ||||||
10 | Section 15-1009. Administrator's contract with another to | ||||||
11 | conduct examination. | ||||||
12 | (a) The administrator may contract with a person to conduct | ||||||
13 | an examination under this Article. The contract shall be | ||||||
14 | awarded pursuant to a request for proposals issued in | ||||||
15 | compliance with the procurement rules of the administrator. | ||||||
16 | (b) If the administrator contracts with a person under | ||||||
17 | subsection (a): | ||||||
18 | (1) the contract may provide for compensation of the | ||||||
19 | person based on a fixed fee, hourly fee, or contingent fee; | ||||||
20 | (2) a contingent fee arrangement may not provide for a | ||||||
21 | payment that exceeds 15% of the amount or value of property | ||||||
22 | paid or delivered as a result of the examination; and | ||||||
23 | (3) as authorized in the State Officers and Employees | ||||||
24 | Money Disposition Act, the administrator may permit the | ||||||
25 | deduction of fees from property recovered during an |
| |||||||
| |||||||
1 | examination under this Article prior to depositing funds | ||||||
2 | received under this Act into the Unclaimed Property Trust | ||||||
3 | Fund. | ||||||
4 | (c) A contract under subsection (a) is a public record | ||||||
5 | under the Freedom of Information Act.
| ||||||
6 | Section 15-1010. Report by administrator. As part of the | ||||||
7 | report required by Section 15 of the State Treasurer Act, the | ||||||
8 | administrator shall compile and include the following | ||||||
9 | information about property presumed abandoned for the | ||||||
10 | preceding fiscal year for the State: | ||||||
11 | (1) the total amount and value of all property paid or | ||||||
12 | delivered under this Act to the administrator, separated | ||||||
13 | into: | ||||||
14 | (A) the part voluntarily paid or delivered; and | ||||||
15 | (B) the part paid or delivered as a result of an | ||||||
16 | examination under Section 15-1002; | ||||||
17 | (2) the total amount and value of all property paid or | ||||||
18 | delivered by the administrator to persons that made claims | ||||||
19 | for property held by the administrator under this Act; | ||||||
20 | (3) the amounts expended from the State Pensions Fund; | ||||||
21 | and | ||||||
22 | (4) such other information as the administrator | ||||||
23 | believes would be useful or informative.
| ||||||
24 | Section 15-1011. Determination of liability for unreported |
| |||||||
| |||||||
1 | reportable property. If the administrator determines from an | ||||||
2 | examination conducted under Section 15-1002 that a putative | ||||||
3 | holder failed or refused to pay or deliver to the administrator | ||||||
4 | property which is reportable under this Act, the administrator | ||||||
5 | shall issue a determination of the putative holder's liability | ||||||
6 | to pay or deliver and give notice in a record to the putative | ||||||
7 | holder of the determination.
| ||||||
8 | ARTICLE 11. DETERMINATION OF LIABILITY; PUTATIVE HOLDER | ||||||
9 | REMEDIES | ||||||
10 | Section 15-1101. Informal conference. | ||||||
11 | (a) Not later than 30 days after receipt of a notice under | ||||||
12 | Section 15-1011, the putative holder may request an informal | ||||||
13 | conference with the administrator to review the determination. | ||||||
14 | Except as otherwise provided in this Section, the administrator | ||||||
15 | may designate an employee to act on behalf of the | ||||||
16 | administrator. | ||||||
17 | (b) If a putative holder makes a timely request under | ||||||
18 | subsection (a) for an informal conference: | ||||||
19 | (1) not later than 30 days after the date of the | ||||||
20 | request, the administrator shall set the time and place of | ||||||
21 | the conference; | ||||||
22 | (2) the administrator shall give the putative holder | ||||||
23 | notice in a record of the time and place of the conference; | ||||||
24 | (3) the conference may be held in person, by telephone, |
| |||||||
| |||||||
1 | or by electronic means, as determined by the administrator; | ||||||
2 | (4) the request tolls the 90-day period under Sections | ||||||
3 | 15-1103 and 15-1104 until notice of a decision under | ||||||
4 | paragraph (7) has been given to the putative holder or the | ||||||
5 | putative holder withdraws the request for the conference; | ||||||
6 | (5) the conference may be postponed, adjourned, and | ||||||
7 | reconvened as the administrator determines appropriate; | ||||||
8 | (6) the administrator or administrator's designee with | ||||||
9 | the approval of the administrator may modify a | ||||||
10 | determination made under Section 15-1011 or withdraw it; | ||||||
11 | and | ||||||
12 | (7) the administrator shall issue a decision in a | ||||||
13 | record and provide a copy of the record to the putative | ||||||
14 | holder and examiner not later than 30 days after the | ||||||
15 | conference ends. | ||||||
16 | (c) A conference under subsection (b) is not an | ||||||
17 | administrative remedy and is not a contested case subject to | ||||||
18 | the Illinois Administrative Procedure Act. An oath is not | ||||||
19 | required and rules of evidence do not apply in the conference. | ||||||
20 | (d) At a conference under subsection (b), the putative | ||||||
21 | holder must be given an opportunity to confer informally with | ||||||
22 | the administrator and the person that examined the records of | ||||||
23 | the putative holder to: | ||||||
24 | (1) discuss the determination made under Section | ||||||
25 | 15-1011; and | ||||||
26 | (2) present any issue concerning the validity of the |
| |||||||
| |||||||
1 | determination. | ||||||
2 | (e) If the administrator fails to act within the period | ||||||
3 | prescribed in subsection (b)(1) or (7), the failure does not | ||||||
4 | affect a right of the administrator, except that interest does | ||||||
5 | not accrue on the amount for which the putative holder was | ||||||
6 | determined to be liable under Section 15-1011 during the period | ||||||
7 | in which the administrator failed to act until the earlier of: | ||||||
8 | (1) the date under Section 15-1103 the putative holder | ||||||
9 | initiates administrative review or files an action under | ||||||
10 | Section 15-1104; or | ||||||
11 | (2) 90 days after the putative holder received notice | ||||||
12 | of the administrator's determination under Section 15-1011 | ||||||
13 | if no review was initiated under Section 15-1103 and no | ||||||
14 | action was filed under Section 15-1104. | ||||||
15 | (f) The administrator may hold an informal conference with | ||||||
16 | a putative holder about a determination under Section 15-1011 | ||||||
17 | without a request at any time before the putative holder | ||||||
18 | initiates administrative review under Section 15-1102. | ||||||
19 | (g) Interest and penalties under Section 15-1204 continue | ||||||
20 | to accrue on property not reported, paid, or delivered as | ||||||
21 | required by this Act after the initiation, and during the | ||||||
22 | pendency, of an informal conference under this Section.
| ||||||
23 | Section 15-1102. Administrative review. | ||||||
24 | (a) Not later than 90 days after receiving notice of the | ||||||
25 | administrator's determination under Section 15-1011, or, if |
| |||||||
| |||||||
1 | applicable and as provided in Section 15-1101(b)(4), after | ||||||
2 | notice of a decision under 15-1101(b)(7) has been given to the | ||||||
3 | putative holder or the putative holder has withdrawn the | ||||||
4 | request for an informal conference, a putative holder may | ||||||
5 | initiate a contested case under the Illinois Administrative | ||||||
6 | Procedure Act for review of the administrator's determination. | ||||||
7 | (b) A final decision in an administrative proceeding | ||||||
8 | initiated under subsection (a) is subject to judicial review | ||||||
9 | under the Article III of Code of Civil Procedure.
| ||||||
10 | ARTICLE 12. ENFORCEMENT BY ADMINISTRATOR | ||||||
11 | Section 15-1201. Judicial action to enforce liability. | ||||||
12 | (a) If a determination under Section 15-1011 becomes final | ||||||
13 | and is not subject to administrative or judicial review, the | ||||||
14 | administrator may commence an action in the Circuit Court of | ||||||
15 | Sangamon County or Cook County, federal court, or in an | ||||||
16 | appropriate court of another state to enforce the determination | ||||||
17 | and secure payment or delivery of past due, unpaid, or | ||||||
18 | undelivered property. The action must be brought not later than | ||||||
19 | 5 years after the determination becomes final. | ||||||
20 | (b) In an action under subsection (a), if no court in this | ||||||
21 | State has jurisdiction over the defendant, the administrator | ||||||
22 | may commence an action in any court having jurisdiction over | ||||||
23 | the defendant.
|
| |||||||
| |||||||
1 | Section 15-1202. Interstate and international agreement; | ||||||
2 | cooperation. | ||||||
3 | (a) Subject to subsection (b), the administrator may: | ||||||
4 | (1) exchange information with another state or foreign | ||||||
5 | country relating to property presumed abandoned or | ||||||
6 | relating to the possible existence of property presumed | ||||||
7 | abandoned; and | ||||||
8 | (2) authorize in a record another state or foreign | ||||||
9 | country or a person acting on behalf of the other state or | ||||||
10 | country to examine its records of a putative holder as | ||||||
11 | provided in Article 10. | ||||||
12 | (b) An exchange or examination under subsection (a) may be | ||||||
13 | done only if the state or foreign country has confidentiality | ||||||
14 | and security requirements substantially equivalent to those in | ||||||
15 | Article 14 or agrees in a record to be bound by this State's | ||||||
16 | confidentiality and security requirements.
| ||||||
17 | Section 15-1203. Action involving another state or foreign | ||||||
18 | country. | ||||||
19 | (a) The administrator may join another state or foreign | ||||||
20 | country to examine and seek enforcement of this Act against a | ||||||
21 | putative holder. | ||||||
22 | (b) On request of another state or foreign country, the | ||||||
23 | Attorney General may commence an action on behalf of the other | ||||||
24 | state or country to enforce, in this State, the law of the | ||||||
25 | other state or country against a putative holder subject to a |
| |||||||
| |||||||
1 | claim by the other state or country. | ||||||
2 | (c) The administrator may request the official authorized | ||||||
3 | to enforce the unclaimed property law of another state or | ||||||
4 | foreign country to commence an action to recover property in | ||||||
5 | the other state or country on behalf of the administrator. This | ||||||
6 | state may pay the costs, including reasonable attorney's fees | ||||||
7 | and expenses, incurred by the other state or foreign country in | ||||||
8 | an action under this subsection. | ||||||
9 | (d) The administrator may pursue an action on behalf of | ||||||
10 | this State to recover property subject to this Act but | ||||||
11 | delivered to the custody of another state if the administrator | ||||||
12 | believes the property is subject to the custody of the | ||||||
13 | administrator. | ||||||
14 | (e) At the request of the administrator, the Attorney | ||||||
15 | General may commence an action to recover property on behalf of | ||||||
16 | the administrator in this State, another state, or a foreign | ||||||
17 | country. With the written consent of the Attorney General, the | ||||||
18 | administrator may retain an attorney in this State, another | ||||||
19 | state, or a foreign country to recover property on behalf of | ||||||
20 | the administrator in this State, another state, or a foreign | ||||||
21 | country and may agree to pay attorney's fees based in whole or | ||||||
22 | in part on a fixed fee, hourly fee, or a percentage of the | ||||||
23 | amounts or value of property recovered in the action. | ||||||
24 | (f) Expenses incurred by this State in an action under this | ||||||
25 | Section may be paid from property received under this Act or | ||||||
26 | the net proceeds of the property. Expenses paid to recover |
| |||||||
| |||||||
1 | property may not be deducted from the amount that is subject to | ||||||
2 | a claim under this Act by the owner.
| ||||||
3 | Section 15-1204. Interest and penalty for failure to act in | ||||||
4 | timely manner. | ||||||
5 | (a) A holder that fails to report, pay, or deliver property | ||||||
6 | within the time prescribed by this Act shall pay to the | ||||||
7 | administrator interest at a rate of 1% per month on the | ||||||
8 | property or value of the property from the date the property | ||||||
9 | should have been reported, paid, or delivered to the | ||||||
10 | administrator until the date reported, paid, or delivered. | ||||||
11 | (b) Except as otherwise provided in Section 15-1 or | ||||||
12 | 15-1206, the administrator may require a holder that fails to | ||||||
13 | report, pay, or deliver property within the time prescribed by | ||||||
14 | this Act to pay to the administrator, in addition to interest | ||||||
15 | included under subsection (a), a civil penalty of $200 for each | ||||||
16 | day the duty is not performed, up to a cumulative maximum | ||||||
17 | amount of $5,000. | ||||||
18 | (c) A holder who fails to report, pay, or deliver property | ||||||
19 | within the time prescribed by this Act shall not be required to | ||||||
20 | pay interest under subsection (a) above or be subject to | ||||||
21 | penalties under subsection (b) above if the failure to report, | ||||||
22 | pay, or deliver the property was due to lack of knowledge of | ||||||
23 | the death that established the period of abandonment under this | ||||||
24 | Act.
|
| |||||||
| |||||||
1 | Section 15-1205. Other civil penalties. | ||||||
2 | (a) If a holder enters into a contract or other arrangement | ||||||
3 | for the purpose of evading an obligation under this Act or | ||||||
4 | otherwise willfully fails to perform a duty imposed on the | ||||||
5 | holder under this Act, the administrator may require the holder | ||||||
6 | to pay the administrator, in addition to interest as provided | ||||||
7 | in subsection (a) of Section 15-1204, a civil penalty of $1,000 | ||||||
8 | for each day the obligation is evaded or the duty is not | ||||||
9 | performed, up to a cumulative maximum amount of $25,000, plus | ||||||
10 | 25% of the amount or value of property that should have been | ||||||
11 | but was not reported, paid, or delivered as a result of the | ||||||
12 | evasion or failure to perform. | ||||||
13 | (b) If a holder makes a fraudulent report under this Act, | ||||||
14 | the administrator may require the holder to pay to the | ||||||
15 | administrator, in addition to interest under subsection (a) of | ||||||
16 | Section 15-1204, a civil penalty of $1,000 for each day from | ||||||
17 | the date the report was made until corrected, up to a | ||||||
18 | cumulative maximum of $25,000, plus 25% of the amount or value | ||||||
19 | of any property that should have been reported but was not | ||||||
20 | included in the report or was underreported.
| ||||||
21 | Section 15-1206. Waiver of interest and penalty. The | ||||||
22 | administrator: | ||||||
23 | (1) may waive, in whole or in part, interest under | ||||||
24 | subsection (a) of Section 15-1204 and penalties under | ||||||
25 | subsection (b) of Section 15-1204 or Section 15-1; and |
| |||||||
| |||||||
1 | (2) shall waive a penalty under subsection (b) of | ||||||
2 | Section 15-1204 if the administrator determines that the | ||||||
3 | holder acted in good faith and without negligence.
| ||||||
4 | ARTICLE 13. AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD | ||||||
5 | BY ADMINISTRATOR | ||||||
6 | Section 15-1301. When agreement to locate property | ||||||
7 | enforceable. An agreement by an apparent owner and another | ||||||
8 | person, the primary purpose of which is to locate, deliver, | ||||||
9 | recover, or assist in the location, delivery, or recovery of | ||||||
10 | property held by the administrator, is enforceable only if the | ||||||
11 | agreement: | ||||||
12 | (1) is in a record that clearly states the nature of | ||||||
13 | the property and the services to be provided; | ||||||
14 | (2) is signed by or on behalf of the apparent owner; | ||||||
15 | and | ||||||
16 | (3) states the amount or value of the property | ||||||
17 | reasonably expected to be recovered, computed before and | ||||||
18 | after a fee or other compensation to be paid to the person | ||||||
19 | has been deducted.
| ||||||
20 | Section 15-1302. When agreement to locate property void. | ||||||
21 | (a) Subject to subsection (b), an agreement under Section | ||||||
22 | 15-1301 is void if it is entered into during the period | ||||||
23 | beginning on the date the property was presumed abandoned under |
| |||||||
| |||||||
1 | this Act and ending 24 months after the payment or delivery of | ||||||
2 | the property to the administrator. | ||||||
3 | (b) If a provision in an agreement described in Section | ||||||
4 | 15-1301 applies to mineral proceeds for which compensation is | ||||||
5 | to be paid to the other person based in whole or in part on a | ||||||
6 | part of the underlying minerals or mineral proceeds not then | ||||||
7 | presumed abandoned, the provision is void regardless of when | ||||||
8 | the agreement was entered into. | ||||||
9 | (c) An agreement under subsection (a) which provides for | ||||||
10 | compensation in an amount that is more than 10% of the amount | ||||||
11 | collected is unenforceable except by the apparent owner. | ||||||
12 | (d) An apparent owner or the administrator may assert that | ||||||
13 | an agreement described in this Section is void on a ground | ||||||
14 | other than it provides for payment of unconscionable | ||||||
15 | compensation. | ||||||
16 | (e) A person attempting to collect a contingent fee for | ||||||
17 | discovering, on behalf of an apparent owner, presumptively | ||||||
18 | abandoned property must be licensed as a private detective | ||||||
19 | pursuant to the Private Detective, Private Alarm, Private | ||||||
20 | Security, Fingerprint Vendor, and Locksmith Act of 2004. | ||||||
21 | (f) This Section does not apply to an apparent owner's | ||||||
22 | agreement with an attorney to pursue a claim for recovery of | ||||||
23 | specifically identified property held by the administrator or | ||||||
24 | to contest the administrator's denial of a claim for recovery | ||||||
25 | of the property.
|
| |||||||
| |||||||
1 | ARTICLE 14. CONFIDENTIALITY AND SECURITY OF INFORMATION | ||||||
2 | Section 15-1401. Confidential information. | ||||||
3 | (a) Except as otherwise provide in this Section, | ||||||
4 | information that is confidential under law of this State other | ||||||
5 | than this Act, another state, or the United States, including | ||||||
6 | "private information" as defined in the Freedom of Information | ||||||
7 | Act and "personal information" as defined in the Personal | ||||||
8 | Information Protection Act, continues to be confidential when | ||||||
9 | disclosed or delivered under this Act to the administrator or | ||||||
10 | administrator's agent. | ||||||
11 | (b) Information provided in reports filed pursuant to | ||||||
12 | Section 15-401, information obtained in the course of an | ||||||
13 | examination pursuant to Section 15-1002, and the database | ||||||
14 | required by Section 15-503 is exempt from disclosure under the | ||||||
15 | Freedom of Information Act. | ||||||
16 | (c) If reasonably necessary to enforce or implement this | ||||||
17 | Act, the administrator or the administrator's agent may | ||||||
18 | disclose confidential information concerning property held by | ||||||
19 | the administrator or the administrator's agent to: | ||||||
20 | (1) an apparent owner or the apparent owner's | ||||||
21 | representative under the Probate Act of 1975, attorney, | ||||||
22 | other legal representative, or relative; | ||||||
23 | (2) the representative under the Probate Act of 1975, | ||||||
24 | other legal representative, relative of a deceased | ||||||
25 | apparent owner, or a person entitled to inherit from the |
| |||||||
| |||||||
1 | deceased apparent owner; | ||||||
2 | (3) another department or agency of this State or the | ||||||
3 | United States; | ||||||
4 | (4) the person that administers the unclaimed property | ||||||
5 | law of another state, if the other state accords | ||||||
6 | substantially reciprocal privileges to the administrator | ||||||
7 | of this State if the other state is required to maintain | ||||||
8 | the confidentiality and security of information obtained | ||||||
9 | in a manner substantially equivalent to Article 14; | ||||||
10 | (5) a person subject to an examination as required by | ||||||
11 | Section 15-1004; and | ||||||
12 | (6) an agent of the administrator. | ||||||
13 | (b) The administrator may include on the website or in the | ||||||
14 | database the names and addresses of apparent owners of property | ||||||
15 | held by the administrator as provided in Section 15-503. The | ||||||
16 | administrator may include in published notices, printed | ||||||
17 | publications, telecommunications, the Internet, or other media | ||||||
18 | and on the website or in the database additional information | ||||||
19 | concerning the apparent owner's property if the administrator | ||||||
20 | believes the information will assist in identifying and | ||||||
21 | returning property to the owner and does not disclose personal | ||||||
22 | information as defined in the Personal Information Protection | ||||||
23 | Act. | ||||||
24 | (c) The administrator and the administrator's agent may not | ||||||
25 | use confidential information provided to them or in their | ||||||
26 | possession except as expressly authorized by this Act or |
| |||||||
| |||||||
1 | required by law other than this Act.
| ||||||
2 | Section 15-1402. Confidentiality agreement. A person to be | ||||||
3 | examined under Section 15-1002 may require, as a condition of | ||||||
4 | disclosure of the records of the person to be examined, that | ||||||
5 | the administrator or the administrator's agent execute and | ||||||
6 | deliver to the person to be examined a confidentiality | ||||||
7 | agreement that: | ||||||
8 | (1) is in a form that is reasonably satisfactory to the | ||||||
9 | administrator; and | ||||||
10 | (2) requires the person having access to the records to | ||||||
11 | comply with the provisions of this Article applicable to | ||||||
12 | the person.
| ||||||
13 | Section 15-1403. No confidential information in notice. | ||||||
14 | Except as otherwise provided in Sections 15-501 and 15-502, a | ||||||
15 | holder is not required under this Act to include confidential | ||||||
16 | information in a notice the holder is required to provide to an | ||||||
17 | apparent owner under this Act.
| ||||||
18 | Section 15-1404. Security of information. | ||||||
19 | (a) If a holder is required to include confidential | ||||||
20 | information in a report to the administrator, the information | ||||||
21 | must be provided by a secure means. | ||||||
22 | (b) If confidential information in a record is provided to | ||||||
23 | and maintained by the administrator or administrator's agent as |
| |||||||
| |||||||
1 | required by this Act, the administrator or agent shall | ||||||
2 | implement and maintain reasonable security measures to protect | ||||||
3 | those records from unauthorized access, acquisition, | ||||||
4 | destruction, use, modification, or disclosure as required by | ||||||
5 | the Personal Information Protection Act. If a State or federal | ||||||
6 | law requires the administrator or agent to provide greater | ||||||
7 | protection to records that contain personal information that | ||||||
8 | are maintained by the administrator or agent and the | ||||||
9 | administrator or agent is in compliance with the provisions of | ||||||
10 | that State or federal law, the administrator or agent is deemed | ||||||
11 | to be in compliance with the provisions of this subsection. | ||||||
12 | (c) If there is any breach of the security of the system | ||||||
13 | data or written material, the administrator and the | ||||||
14 | administrator's agent shall comply with the notice | ||||||
15 | requirements of Section 12 of the Personal Information | ||||||
16 | Protection Act, and shall, if applicable, cooperate with a | ||||||
17 | holder in complying with the notice requirements of Section 10 | ||||||
18 | of the Personal Information Protection Act. | ||||||
19 | (d) The administrator and the administrator's agent shall | ||||||
20 | either return in a secure manner or destroy in a manner | ||||||
21 | consistent with the Personal Information Protection Act all | ||||||
22 | confidential information no longer reasonably needed under | ||||||
23 | this Act.
| ||||||
24 | ARTICLE 15. MISCELLANEOUS |
| |||||||
| |||||||
1 | Section 15-1501. Uniformity of application and | ||||||
2 | construction. In applying and construing this uniform Act | ||||||
3 | consideration must be given to the need to promote uniformity | ||||||
4 | of the law with respect to its subject matter among states that | ||||||
5 | enact it.
| ||||||
6 | Section 15-1502. Relation to Electronic Signatures in | ||||||
7 | Global and National Commerce Act. This Act modifies, limits, or | ||||||
8 | supersedes the Electronic Signatures in Global and National | ||||||
9 | Commerce Act, 15 U.S.C. Section 7001 et seq., but does not | ||||||
10 | modify, limit, or supersede Section 101(c) of that Act, 15 | ||||||
11 | U.S.C. Section 7001(c), or authorize electronic delivery of any | ||||||
12 | of the notices described in Section 103(b) of that Act, 15 | ||||||
13 | U.S.C. Section 7003(b).
| ||||||
14 | Section 15-1503. Transitional provision. | ||||||
15 | (a) An initial report filed under this Act for property | ||||||
16 | that was not required to be reported before the effective date | ||||||
17 | of this Act, but that is required to be reported under this | ||||||
18 | Act, must include all items of property that would have been | ||||||
19 | presumed abandoned during the 5-year period preceding the | ||||||
20 | effective date of this Act as if this Act had been in effect | ||||||
21 | during that period. | ||||||
22 | (b) This Act does not relieve a holder of a duty that arose | ||||||
23 | before the effective date of this Act to report, pay, or | ||||||
24 | deliver property. Subject to subsection (b) of Section 15-610, |
| |||||||
| |||||||
1 | a holder that did not comply with the law governing unclaimed | ||||||
2 | property before the effective date of this Act is subject to | ||||||
3 | applicable provisions for enforcement and penalties in effect | ||||||
4 | before the effective date of this Act.
| ||||||
5 | Section 15-1504. Severability. If any provision of this Act | ||||||
6 | or its application to any person or circumstance is held | ||||||
7 | invalid, the invalidity does not affect other provisions or | ||||||
8 | applications of this Act which can be given effect without the | ||||||
9 | invalid provision or application, and to this end the | ||||||
10 | provisions of this Act are severable.
| ||||||
11 | ARTICLE 17. AMENDATORY PROVISIONS; UNCLAIMED PROPERTY | ||||||
12 | (765 ILCS 1025/Act rep.) | ||||||
13 | Section 17-5. The Uniform Disposition of Unclaimed | ||||||
14 | Property Act is repealed.
| ||||||
15 | Section 17-10. The Illinois Administrative Procedure Act | ||||||
16 | is amended by changing Section 1-5 as follows:
| ||||||
17 | (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
| ||||||
18 | Sec. 1-5. Applicability.
| ||||||
19 | (a) This Act applies to every agency as defined in this | ||||||
20 | Act.
Beginning January 1, 1978, in case of conflict between the | ||||||
21 | provisions of
this Act and the Act creating or conferring power |
| |||||||
| |||||||
1 | on an agency, this Act
shall control. If, however, an agency | ||||||
2 | (or its predecessor in the case of
an agency that has been | ||||||
3 | consolidated or reorganized) has existing procedures
on July 1, | ||||||
4 | 1977, specifically for contested cases or licensing, those | ||||||
5 | existing
provisions control, except that this exception | ||||||
6 | respecting contested
cases and licensing does not apply if the | ||||||
7 | Act creating or conferring
power on the agency adopts by | ||||||
8 | express reference the provisions of this
Act. Where the Act | ||||||
9 | creating or conferring power on an agency
establishes | ||||||
10 | administrative procedures not covered by this Act, those
| ||||||
11 | procedures shall remain in effect.
| ||||||
12 | (b) The provisions of this Act do not apply to (i) | ||||||
13 | preliminary
hearings, investigations, or practices where no | ||||||
14 | final determinations
affecting State funding are made by the | ||||||
15 | State Board of Education, (ii) legal
opinions issued under | ||||||
16 | Section 2-3.7 of the School Code, (iii) as to State
colleges | ||||||
17 | and universities, their disciplinary and grievance | ||||||
18 | proceedings,
academic irregularity and capricious grading | ||||||
19 | proceedings, and admission
standards and procedures, and (iv) | ||||||
20 | the class specifications for positions
and individual position | ||||||
21 | descriptions prepared and maintained under the
Personnel Code. | ||||||
22 | Those class specifications shall, however, be made
reasonably | ||||||
23 | available to the public for inspection and copying. The
| ||||||
24 | provisions of this Act do not apply to hearings under Section | ||||||
25 | 20 of the
Uniform Disposition of Unclaimed Property Act.
| ||||||
26 | (c) Section 5-35 of this Act relating to procedures for |
| |||||||
| |||||||
1 | rulemaking
does not apply to the following:
| ||||||
2 | (1) Rules adopted by the Pollution Control Board that, | ||||||
3 | in accordance
with Section 7.2 of the Environmental | ||||||
4 | Protection Act, are identical in
substance to federal | ||||||
5 | regulations or amendments to those regulations
| ||||||
6 | implementing the following: Sections 3001, 3002, 3003, | ||||||
7 | 3004, 3005, and 9003
of the Solid Waste Disposal Act; | ||||||
8 | Section 105 of the Comprehensive Environmental
Response, | ||||||
9 | Compensation, and Liability Act of 1980; Sections 307(b), | ||||||
10 | 307(c),
307(d), 402(b)(8), and 402(b)(9) of the Federal | ||||||
11 | Water Pollution Control
Act; Sections 1412(b), 1414(c), | ||||||
12 | 1417(a), 1421, and 1445(a) of the Safe
Drinking Water Act; | ||||||
13 | and Section 109 of the Clean Air Act.
| ||||||
14 | (2) Rules adopted by the Pollution Control Board that | ||||||
15 | establish or
amend standards for the emission of | ||||||
16 | hydrocarbons and carbon monoxide from
gasoline powered | ||||||
17 | motor vehicles subject to inspection under the Vehicle | ||||||
18 | Emissions Inspection Law of 2005 or its predecessor laws.
| ||||||
19 | (3) Procedural rules adopted by the Pollution Control | ||||||
20 | Board governing
requests for exceptions under Section 14.2 | ||||||
21 | of the Environmental Protection Act.
| ||||||
22 | (4) The Pollution Control Board's grant, pursuant to an
| ||||||
23 | adjudicatory determination, of an adjusted standard for | ||||||
24 | persons who can
justify an adjustment consistent with | ||||||
25 | subsection (a) of Section 27 of
the Environmental | ||||||
26 | Protection Act.
|
| |||||||
| |||||||
1 | (4.5) The Pollution Control Board's adoption of | ||||||
2 | time-limited water quality standards under Section 38.5 of | ||||||
3 | the Environmental Protection Act. | ||||||
4 | (5) Rules adopted by the Pollution Control Board that | ||||||
5 | are identical in
substance to the regulations adopted by | ||||||
6 | the Office of the State Fire
Marshal under clause (ii) of | ||||||
7 | paragraph (b) of subsection (3) of Section 2
of the | ||||||
8 | Gasoline Storage Act.
| ||||||
9 | (d) Pay rates established under Section 8a of the Personnel | ||||||
10 | Code
shall be amended or repealed pursuant to the process set | ||||||
11 | forth in Section
5-50 within 30 days after it becomes necessary | ||||||
12 | to do so due to a conflict
between the rates and the terms of a | ||||||
13 | collective bargaining agreement
covering the compensation of | ||||||
14 | an employee subject to that Code.
| ||||||
15 | (e) Section 10-45 of this Act shall not apply to any | ||||||
16 | hearing, proceeding,
or investigation conducted under Section | ||||||
17 | 13-515 of the Public Utilities Act.
| ||||||
18 | (f) Article 10 of this Act does not apply to any hearing, | ||||||
19 | proceeding, or
investigation conducted by the State Council for | ||||||
20 | the State of Illinois created
under Section 3-3-11.05 of the | ||||||
21 | Unified Code of Corrections or by the Interstate
Commission for | ||||||
22 | Adult Offender Supervision created under the
Interstate | ||||||
23 | Compact for Adult Offender Supervision or by the Interstate | ||||||
24 | Commission for Juveniles created under the Interstate Compact | ||||||
25 | for Juveniles.
| ||||||
26 | (g) This Act is subject to the provisions of Article XXI of
|
| |||||||
| |||||||
1 | the Public Utilities Act. To the extent that any provision of
| ||||||
2 | this Act conflicts with the provisions of that Article XXI, the
| ||||||
3 | provisions of that Article XXI control.
| ||||||
4 | (Source: P.A. 98-463, eff. 8-16-13; 99-937, eff. 2-24-17.)
| ||||||
5 | Section 17-15. The Freedom of Information Act is amended by | ||||||
6 | changing Section 7.5 as follows:
| ||||||
7 | (5 ILCS 140/7.5) | ||||||
8 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
9 | by the statutes referenced below, the following shall be exempt | ||||||
10 | from inspection and copying: | ||||||
11 | (a) All information determined to be confidential | ||||||
12 | under Section 4002 of the Technology Advancement and | ||||||
13 | Development Act. | ||||||
14 | (b) Library circulation and order records identifying | ||||||
15 | library users with specific materials under the Library | ||||||
16 | Records Confidentiality Act. | ||||||
17 | (c) Applications, related documents, and medical | ||||||
18 | records received by the Experimental Organ Transplantation | ||||||
19 | Procedures Board and any and all documents or other records | ||||||
20 | prepared by the Experimental Organ Transplantation | ||||||
21 | Procedures Board or its staff relating to applications it | ||||||
22 | has received. | ||||||
23 | (d) Information and records held by the Department of | ||||||
24 | Public Health and its authorized representatives relating |
| |||||||
| |||||||
1 | to known or suspected cases of sexually transmissible | ||||||
2 | disease or any information the disclosure of which is | ||||||
3 | restricted under the Illinois Sexually Transmissible | ||||||
4 | Disease Control Act. | ||||||
5 | (e) Information the disclosure of which is exempted | ||||||
6 | under Section 30 of the Radon Industry Licensing Act. | ||||||
7 | (f) Firm performance evaluations under Section 55 of | ||||||
8 | the Architectural, Engineering, and Land Surveying | ||||||
9 | Qualifications Based Selection Act. | ||||||
10 | (g) Information the disclosure of which is restricted | ||||||
11 | and exempted under Section 50 of the Illinois Prepaid | ||||||
12 | Tuition Act. | ||||||
13 | (h) Information the disclosure of which is exempted | ||||||
14 | under the State Officials and Employees Ethics Act, and | ||||||
15 | records of any lawfully created State or local inspector | ||||||
16 | general's office that would be exempt if created or | ||||||
17 | obtained by an Executive Inspector General's office under | ||||||
18 | that Act. | ||||||
19 | (i) Information contained in a local emergency energy | ||||||
20 | plan submitted to a municipality in accordance with a local | ||||||
21 | emergency energy plan ordinance that is adopted under | ||||||
22 | Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
23 | (j) Information and data concerning the distribution | ||||||
24 | of surcharge moneys collected and remitted by wireless | ||||||
25 | carriers under the Wireless Emergency Telephone Safety | ||||||
26 | Act. |
| |||||||
| |||||||
1 | (k) Law enforcement officer identification information | ||||||
2 | or driver identification information compiled by a law | ||||||
3 | enforcement agency or the Department of Transportation | ||||||
4 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
5 | (l) Records and information provided to a residential | ||||||
6 | health care facility resident sexual assault and death | ||||||
7 | review team or the Executive Council under the Abuse | ||||||
8 | Prevention Review Team Act. | ||||||
9 | (m) Information provided to the predatory lending | ||||||
10 | database created pursuant to Article 3 of the Residential | ||||||
11 | Real Property Disclosure Act, except to the extent | ||||||
12 | authorized under that Article. | ||||||
13 | (n) Defense budgets and petitions for certification of | ||||||
14 | compensation and expenses for court appointed trial | ||||||
15 | counsel as provided under Sections 10 and 15 of the Capital | ||||||
16 | Crimes Litigation Act. This subsection (n) shall apply | ||||||
17 | until the conclusion of the trial of the case, even if the | ||||||
18 | prosecution chooses not to pursue the death penalty prior | ||||||
19 | to trial or sentencing. | ||||||
20 | (o) Information that is prohibited from being | ||||||
21 | disclosed under Section 4 of the Illinois Health and | ||||||
22 | Hazardous Substances Registry Act. | ||||||
23 | (p) Security portions of system safety program plans, | ||||||
24 | investigation reports, surveys, schedules, lists, data, or | ||||||
25 | information compiled, collected, or prepared by or for the | ||||||
26 | Regional Transportation Authority under Section 2.11 of |
| |||||||
| |||||||
1 | the Regional Transportation Authority Act or the St. Clair | ||||||
2 | County Transit District under the Bi-State Transit Safety | ||||||
3 | Act. | ||||||
4 | (q) Information prohibited from being disclosed by the | ||||||
5 | Personnel Records Review Act. | ||||||
6 | (r) Information prohibited from being disclosed by the | ||||||
7 | Illinois School Student Records Act. | ||||||
8 | (s) Information the disclosure of which is restricted | ||||||
9 | under Section 5-108 of the Public Utilities Act.
| ||||||
10 | (t) All identified or deidentified health information | ||||||
11 | in the form of health data or medical records contained in, | ||||||
12 | stored in, submitted to, transferred by, or released from | ||||||
13 | the Illinois Health Information Exchange, and identified | ||||||
14 | or deidentified health information in the form of health | ||||||
15 | data and medical records of the Illinois Health Information | ||||||
16 | Exchange in the possession of the Illinois Health | ||||||
17 | Information Exchange Authority due to its administration | ||||||
18 | of the Illinois Health Information Exchange. The terms | ||||||
19 | "identified" and "deidentified" shall be given the same | ||||||
20 | meaning as in the Health Insurance Portability and | ||||||
21 | Accountability Act of 1996, Public Law 104-191, or any | ||||||
22 | subsequent amendments thereto, and any regulations | ||||||
23 | promulgated thereunder. | ||||||
24 | (u) Records and information provided to an independent | ||||||
25 | team of experts under Brian's Law. | ||||||
26 | (v) Names and information of people who have applied |
| |||||||
| |||||||
1 | for or received Firearm Owner's Identification Cards under | ||||||
2 | the Firearm Owners Identification Card Act or applied for | ||||||
3 | or received a concealed carry license under the Firearm | ||||||
4 | Concealed Carry Act, unless otherwise authorized by the | ||||||
5 | Firearm Concealed Carry Act; and databases under the | ||||||
6 | Firearm Concealed Carry Act, records of the Concealed Carry | ||||||
7 | Licensing Review Board under the Firearm Concealed Carry | ||||||
8 | Act, and law enforcement agency objections under the | ||||||
9 | Firearm Concealed Carry Act. | ||||||
10 | (w) Personally identifiable information which is | ||||||
11 | exempted from disclosure under subsection (g) of Section | ||||||
12 | 19.1 of the Toll Highway Act. | ||||||
13 | (x) Information which is exempted from disclosure | ||||||
14 | under Section 5-1014.3 of the Counties Code or Section | ||||||
15 | 8-11-21 of the Illinois Municipal Code. | ||||||
16 | (y) Confidential information under the Adult | ||||||
17 | Protective Services Act and its predecessor enabling | ||||||
18 | statute, the Elder Abuse and Neglect Act, including | ||||||
19 | information about the identity and administrative finding | ||||||
20 | against any caregiver of a verified and substantiated | ||||||
21 | decision of abuse, neglect, or financial exploitation of an | ||||||
22 | eligible adult maintained in the Registry established | ||||||
23 | under Section 7.5 of the Adult Protective Services Act. | ||||||
24 | (z) Records and information provided to a fatality | ||||||
25 | review team or the Illinois Fatality Review Team Advisory | ||||||
26 | Council under Section 15 of the Adult Protective Services |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (aa) Information which is exempted from disclosure | ||||||
3 | under Section 2.37 of the Wildlife Code. | ||||||
4 | (bb) Information which is or was prohibited from | ||||||
5 | disclosure by the Juvenile Court Act of 1987. | ||||||
6 | (cc) Recordings made under the Law Enforcement | ||||||
7 | Officer-Worn Body Camera Act, except to the extent | ||||||
8 | authorized under that Act. | ||||||
9 | (dd) Information that is prohibited from being | ||||||
10 | disclosed under Section 45 of the Condominium and Common | ||||||
11 | Interest Community Ombudsperson Act. | ||||||
12 | (ee) (dd) Information that is exempted from disclosure | ||||||
13 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
14 | (ff) Information that is exempted from disclosure | ||||||
15 | under the Revised Uniform Unclaimed Property Act. | ||||||
16 | (Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, | ||||||
17 | eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14; | ||||||
18 | 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16; | ||||||
19 | 99-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff. | ||||||
20 | 8-19-16; revised 9-1-16.)
| ||||||
21 | Section 17-20. The State Comptroller Act is amended by | ||||||
22 | changing Section 9 as follows:
| ||||||
23 | (15 ILCS 405/9) (from Ch. 15, par. 209)
| ||||||
24 | Sec. 9. Warrants; vouchers; preaudit.
|
| |||||||
| |||||||
1 | (a) No payment may be made from
public funds held by the | ||||||
2 | State Treasurer in or outside of the State
treasury, except by | ||||||
3 | warrant drawn by the Comptroller and presented by
him to the | ||||||
4 | treasurer to be countersigned except for payments made pursuant
| ||||||
5 | to Section 9.03 or 9.05 of this Act.
| ||||||
6 | (b) No warrant for the payment of money by the State | ||||||
7 | Treasurer may be
drawn by the Comptroller without the | ||||||
8 | presentation of itemized vouchers
indicating that the | ||||||
9 | obligation or expenditure is pursuant to law and
authorized, | ||||||
10 | and authorizing the Comptroller to order payment.
| ||||||
11 | (b-1) An itemized voucher for under $5 that is presented to | ||||||
12 | the Comptroller for payment shall not be paid except through | ||||||
13 | electronic funds transfer. This subsection (b-1) does not apply | ||||||
14 | to (i) vouchers presented by the legislative branch of State | ||||||
15 | government, (ii) vouchers presented by the State Treasurer's | ||||||
16 | Office for the payment of unclaimed property claims authorized | ||||||
17 | under the Revised Uniform Disposition of Unclaimed Property | ||||||
18 | Act, or (iii) vouchers presented by the Department of Revenue | ||||||
19 | for the payment of refunds of taxes administered by the | ||||||
20 | Department. | ||||||
21 | (c) The Comptroller shall examine each voucher required by | ||||||
22 | law to be filed
with him and determine whether unencumbered | ||||||
23 | appropriations or unencumbered
obligational or expenditure | ||||||
24 | authority other than by appropriation are
legally available to | ||||||
25 | incur the obligation or to make the expenditure of public
| ||||||
26 | funds. If he determines that
unencumbered appropriations or |
| |||||||
| |||||||
1 | other obligational or expenditure
authority are not available | ||||||
2 | from which to incur the obligation or make
the expenditure, the | ||||||
3 | Comptroller shall refuse to draw a warrant.
| ||||||
4 | (d) The Comptroller shall examine each voucher and all | ||||||
5 | other documentation
required to accompany the voucher, and | ||||||
6 | shall ascertain whether the voucher
and documentation meet all | ||||||
7 | requirements established by or pursuant to law.
If the | ||||||
8 | Comptroller determines that the voucher and documentation do | ||||||
9 | not
meet applicable requirements established by or pursuant to | ||||||
10 | law, he shall
refuse to draw a warrant. As used in this | ||||||
11 | Section, "requirements established
by or pursuant to law" | ||||||
12 | includes statutory enactments and requirements established
by | ||||||
13 | rules and regulations adopted pursuant to this Act.
| ||||||
14 | (e) Prior to drawing a warrant, the Comptroller may review | ||||||
15 | the voucher,
any documentation accompanying the voucher, and | ||||||
16 | any other documentation
related to the transaction on file with | ||||||
17 | him, and determine if the transaction
is in accordance with the | ||||||
18 | law. If based on his review the Comptroller has
reason to | ||||||
19 | believe that such transaction is not in accordance with the | ||||||
20 | law,
he shall refuse to draw a warrant.
| ||||||
21 | (f) Where the Comptroller refuses to draw a warrant | ||||||
22 | pursuant to this Section,
he shall maintain separate records of | ||||||
23 | such transactions.
| ||||||
24 | (g) State agencies shall have the principal responsibility | ||||||
25 | for the preaudit
of their encumbrances, expenditures, and other | ||||||
26 | transactions as otherwise
required by law.
|
| |||||||
| |||||||
1 | (Source: P.A. 97-969, eff. 8-16-12; 97-1142, eff. 12-28-12; | ||||||
2 | 98-421, eff. 8-16-13.)
| ||||||
3 | Section 17-25. The State Treasurer Act is amended by | ||||||
4 | changing Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
| ||||||
5 | (15 ILCS 505/0.02)
| ||||||
6 | Sec. 0.02. Transfer of powers. The rights, powers, duties, | ||||||
7 | and functions vested in the Department of
Financial | ||||||
8 | Institutions to administer the Uniform Disposition of | ||||||
9 | Unclaimed
Property Act (superseded by the Revised Uniform | ||||||
10 | Unclaimed Property Act) are transferred to the State Treasurer | ||||||
11 | on July 1, 1999; provided,
however, that the rights, powers, | ||||||
12 | duties, and functions
involving the examination of the records | ||||||
13 | of any person that the State Treasurer
has reason to believe | ||||||
14 | has failed to report properly under this Act shall be
| ||||||
15 | transferred to the Office of Banks and Real Estate if the | ||||||
16 | person is
regulated by the Office of Banks and Real Estate | ||||||
17 | under the Illinois Banking
Act, the Corporate Fiduciary Act, | ||||||
18 | the Foreign Banking Office Act, the Illinois
Savings and Loan | ||||||
19 | Act of 1985, or the Savings Bank Act
and shall be retained by | ||||||
20 | the Department of Financial Institutions if the
person is doing | ||||||
21 | business in the State under the supervision of the Department
| ||||||
22 | of Financial Institutions, the National Credit Union | ||||||
23 | Administration,
the Office of Thrift Supervision, or the | ||||||
24 | Comptroller of the Currency.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
2 | (15 ILCS 505/0.03)
| ||||||
3 | Sec. 0.03. Transfer of personnel.
| ||||||
4 | (a) Except as provided in subsection (b), personnel | ||||||
5 | employed by the
Department of Financial Institutions on June | ||||||
6 | 30, 1999 to perform duties
pertaining to the administration of | ||||||
7 | the Uniform Disposition of Unclaimed
Property
Act (superseded | ||||||
8 | by the Revised Uniform Unclaimed Property Act) are transferred | ||||||
9 | to the State Treasurer on July 1, 1999.
| ||||||
10 | (b) In the case of a person employed by the Department of | ||||||
11 | Financial
Institutions to perform both duties pertaining to the | ||||||
12 | administration of the Uniform Disposition of Unclaimed | ||||||
13 | Property Act (superseded by the Revised Uniform Unclaimed | ||||||
14 | Property Act) and duties pertaining to a
function retained by | ||||||
15 | the Department of Financial Institutions, the State
Treasurer, | ||||||
16 | in consultation with the Director of Financial Institutions, | ||||||
17 | shall
determine whether to transfer the employee to the Office | ||||||
18 | of the State
Treasurer; until this determination has been made, | ||||||
19 | the transfer shall not take
effect.
| ||||||
20 | (c) The rights of State employees, the State, and its | ||||||
21 | agencies under the
Personnel Code and applicable collective | ||||||
22 | bargaining agreements and retirement
plans are not affected by | ||||||
23 | this amendatory Act of 1999, except that all
positions | ||||||
24 | transferred to the State Treasurer shall be subject to the | ||||||
25 | State
Treasurer Employment Code effective July 1, 2000.
|
| |||||||
| |||||||
1 | All transferred employees who are members of
collective | ||||||
2 | bargaining units shall retain their seniority, continuous | ||||||
3 | service,
salary, and accrued benefits. During the pendency of | ||||||
4 | the existing collective
bargaining agreement, the rights | ||||||
5 | provided for under that agreement and
memoranda and supplements | ||||||
6 | to that agreement, including but not limited to, the
rights of | ||||||
7 | employees performing duties pertaining to the administration | ||||||
8 | of the
Uniform Disposition of Unclaimed Property Act | ||||||
9 | (superseded by the Revised Uniform Unclaimed Property Act) to | ||||||
10 | positions in other State
agencies and the right of employees in | ||||||
11 | other State agencies covered by the
agreement to positions | ||||||
12 | performing duties pertaining to the administration of
the | ||||||
13 | Uniform Disposition of Unclaimed Property Act (superseded by | ||||||
14 | the Revised Uniform Unclaimed Property Act) , shall not be | ||||||
15 | abridged.
| ||||||
16 | The State Treasurer shall
continue to honor during their | ||||||
17 | pendency all bargaining agreements
in effect at the time of the | ||||||
18 | transfer and to recognize all collective
bargaining | ||||||
19 | representatives for the employees who perform or will perform
| ||||||
20 | functions transferred by this amendatory Act of 1999. For all | ||||||
21 | purposes with
respect to the management of the existing | ||||||
22 | agreement and the
negotiation and management of any successor | ||||||
23 | agreements, the State Treasurer
shall be deemed to
be the | ||||||
24 | employer of employees who perform or will perform functions | ||||||
25 | transferred
to the Office of the State Treasurer by
this | ||||||
26 | amendatory Act of 1999; provided that the Illinois Department |
| |||||||
| |||||||
1 | of Central
Management Services shall be a party to any
| ||||||
2 | grievance or arbitration proceeding held pursuant to the | ||||||
3 | provisions of the
collective bargaining agreement which | ||||||
4 | involves the movement
of employees from the Office of the State | ||||||
5 | Treasurer to an
agency under the jurisdiction of the Governor | ||||||
6 | covered by the agreement.
| ||||||
7 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
8 | (15 ILCS 505/0.04)
| ||||||
9 | Sec. 0.04. Transfer of property.
| ||||||
10 | (a) Except as provided in subsection (b), all real and | ||||||
11 | personal property,
including but not limited to all books, | ||||||
12 | records, and documents, and all
unexpended appropriations and | ||||||
13 | pending business
pertaining to the administration of the | ||||||
14 | Uniform Disposition of Unclaimed
Property Act (superseded by | ||||||
15 | the Revised Uniform Unclaimed Property Act) shall be | ||||||
16 | transferred and delivered to the State Treasurer
effective July | ||||||
17 | 1, 1999.
| ||||||
18 | (b) In the case of books, records, or documents that | ||||||
19 | pertain both to
the administration of the Uniform Disposition | ||||||
20 | of Unclaimed Property Act (superseded by the Revised Uniform | ||||||
21 | Unclaimed Property Act) and to
a function retained by the | ||||||
22 | Department of Financial Institutions, the State
Treasurer, in | ||||||
23 | consultation with the Director of Financial Institutions, | ||||||
24 | shall
determine whether the books, records, or documents shall | ||||||
25 | be transferred,
copied, or left with the Department of |
| |||||||
| |||||||
1 | Financial Institutions; until this
determination has been | ||||||
2 | made, the transfer shall not take effect.
| ||||||
3 | In the case of property or an unexpended appropriation that | ||||||
4 | pertains both to
the administration of the Uniform Disposition | ||||||
5 | of Unclaimed Property Act (superseded by the Revised Uniform | ||||||
6 | Unclaimed Property Act) and to
a function retained by the | ||||||
7 | Department of Financial Institutions, the State
Treasurer, in | ||||||
8 | consultation with the Director of Financial Institutions, | ||||||
9 | shall
determine whether the property or unexpended | ||||||
10 | appropriation shall be
transferred, divided, or left with the | ||||||
11 | Department of Financial Institutions;
until this determination | ||||||
12 | has been made (and, in the case of an unexpended
appropriation, | ||||||
13 | notice of the determination has been filed with the State
| ||||||
14 | Comptroller), the transfer shall not take effect.
| ||||||
15 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
16 | (15 ILCS 505/0.05)
| ||||||
17 | Sec. 0.05. Rules and standards.
| ||||||
18 | (a) The rules and standards of the Department of Financial | ||||||
19 | Institutions that
are in effect on June 30, 1999 and pertain to | ||||||
20 | the administration of the
Uniform Disposition of Unclaimed | ||||||
21 | Property Act (superseded by the Revised Uniform Unclaimed | ||||||
22 | Property Act) shall become the rules and
standards of the State | ||||||
23 | Treasurer on July 1, 1999 and shall continue in
effect until | ||||||
24 | amended or repealed by the State Treasurer.
| ||||||
25 | (b) Any rules pertaining to the administration of the |
| |||||||
| |||||||
1 | Uniform Disposition of
Unclaimed Property Act (superseded by | ||||||
2 | the Revised Uniform Unclaimed Property Act) that have been | ||||||
3 | proposed by the Department of Financial
Institutions but have | ||||||
4 | not taken effect or been finally adopted by June 30,
1999 shall | ||||||
5 | become proposed rules of the State Treasurer on July 1, 1999, | ||||||
6 | and
any rulemaking procedures that have already been completed | ||||||
7 | by the Department of
Financial Institutions need not be | ||||||
8 | repeated.
| ||||||
9 | (c) As soon as practical after July 1, 1999, the State | ||||||
10 | Treasurer shall
revise and clarify the rules transferred to it | ||||||
11 | under this amendatory Act of
1999 to reflect the reorganization | ||||||
12 | of rights, powers, duties, and functions
effected by this | ||||||
13 | amendatory Act of 1999 using the procedures for recodification
| ||||||
14 | of rules available under the Illinois Administrative Procedure | ||||||
15 | Act, except that
existing title, part, and section numbering | ||||||
16 | for the affected rules may be
retained.
| ||||||
17 | (d) As soon as practical after July 1, 1999, the Office of | ||||||
18 | Banks and Real
Estate and the Office of the State Treasurer | ||||||
19 | shall jointly promulgate rules to
reflect the transfer of | ||||||
20 | examination functions to the Office of Banks and Real
Estate | ||||||
21 | under this amendatory Act of 1999 using the procedures | ||||||
22 | available under
the Illinois Administrative Procedure Act.
| ||||||
23 | (e) As soon as practical after July 1, 1999, the Department | ||||||
24 | of Financial
Institutions and the Office of the State Treasurer | ||||||
25 | shall jointly promulgate
rules to reflect the retention of | ||||||
26 | examination functions by the Department of
Financial |
| |||||||
| |||||||
1 | Institutions under this amendatory Act of 1999 using the | ||||||
2 | procedures
available under the Illinois Administrative | ||||||
3 | Procedure Act.
| ||||||
4 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
5 | (15 ILCS 505/0.06)
| ||||||
6 | Sec. 0.06. Savings provisions.
| ||||||
7 | (a) The rights, powers, duties, and functions transferred | ||||||
8 | to the State
Treasurer or the Commissioner of Banks and Real | ||||||
9 | Estate by this amendatory Act
of 1999 shall be vested in and | ||||||
10 | exercised by
the State Treasurer or the Commissioner of Banks | ||||||
11 | and Real Estate subject to the
provisions of this amendatory | ||||||
12 | Act of 1999.
An act done by the State Treasurer or the | ||||||
13 | Commissioner of Banks and Real Estate
or an officer, employee, | ||||||
14 | or agent of the
State Treasurer or the Commissioner of Banks | ||||||
15 | and Real Estate in the exercise of
the transferred rights, | ||||||
16 | powers, duties, or
functions shall have the same legal effect | ||||||
17 | as if done by the Department of
Financial Institutions or an | ||||||
18 | officer, employee, or agent of the Department of
Financial | ||||||
19 | Institutions prior to the effective date of this amendatory Act | ||||||
20 | of
1999.
| ||||||
21 | (b) The transfer of rights, powers, duties, and functions | ||||||
22 | to the State
Treasurer or the Commissioner of Banks and Real | ||||||
23 | Estate under this amendatory
Act of 1999 does not invalidate | ||||||
24 | any previous
action taken by or in respect to the Department of | ||||||
25 | Financial Institutions or
its officers, employees, or agents. |
| |||||||
| |||||||
1 | References to the Department of Financial
Institutions or its | ||||||
2 | officers, employees or agents in any document, contract,
| ||||||
3 | agreement, or law shall, in
appropriate contexts, be deemed to | ||||||
4 | refer to the State Treasurer or the
Commissioner of Banks and | ||||||
5 | Real Estate or the officers, employees, or
agents of the State | ||||||
6 | Treasurer or the Commissioner of Banks and Real Estate.
| ||||||
7 | (c) The transfer of rights, powers, duties, and functions | ||||||
8 | from the
Department of Financial Institutions to the State
| ||||||
9 | Treasurer or the Commissioner of Banks and Real Estate under | ||||||
10 | this amendatory
Act of 1999 does not affect the rights,
| ||||||
11 | obligations, or duties of any other person or entity, including | ||||||
12 | any civil or
criminal penalties
applicable thereto, arising out | ||||||
13 | of those transferred rights, powers, duties,
and functions.
| ||||||
14 | (d) With respect to matters that pertain to a right, power, | ||||||
15 | duty, or
function transferred to the State Treasurer under this | ||||||
16 | amendatory Act of 1999:
| ||||||
17 | (1) Beginning July 1, 1999, any report or notice that | ||||||
18 | was previously
required to be made or given by any person | ||||||
19 | to the Department of Financial
Institutions or any of its | ||||||
20 | officers, employees, or agents under the Uniform
| ||||||
21 | Disposition of Unclaimed Property Act (superseded by the | ||||||
22 | Revised Uniform Unclaimed Property Act) or rules | ||||||
23 | promulgated pursuant to that Act
shall be made or given in | ||||||
24 | the same manner to the State Treasurer or his or her
| ||||||
25 | appropriate officer, employee, or agent.
| ||||||
26 | (2) Beginning July 1, 1999, any document that was |
| |||||||
| |||||||
1 | previously required
to
be furnished or served by any person | ||||||
2 | to or upon the Department of Financial
Institutions or any | ||||||
3 | of its officers, employees, or agents under the Uniform
| ||||||
4 | Disposition of Unclaimed Property Act (superseded by the | ||||||
5 | Revised Uniform Unclaimed Property Act) or rules | ||||||
6 | promulgated pursuant to that Act
shall be furnished or | ||||||
7 | served in the same manner to or upon the State Treasurer
or | ||||||
8 | his or her appropriate officer, employee, or agent.
| ||||||
9 | (e) This amendatory Act of 1999 does not affect any act | ||||||
10 | done, ratified, or
canceled, any right occurring or | ||||||
11 | established, or any action or proceeding had
or commenced in an | ||||||
12 | administrative, civil, or criminal cause before July 1, 1999. | ||||||
13 | Any such action or proceeding that pertains to the Uniform | ||||||
14 | Disposition
of Unclaimed Property Act (superseded by the | ||||||
15 | Revised Uniform Unclaimed Property Act) or rules promulgated | ||||||
16 | pursuant to that Act and that is
pending on that date may be | ||||||
17 | prosecuted, defended, or continued by the State
Treasurer.
| ||||||
18 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
19 | Section 17-30. The Financial Institutions Code is amended | ||||||
20 | by changing Sections 7 and 18.1 as follows:
| ||||||
21 | (20 ILCS 1205/7) (from Ch. 17, par. 108)
| ||||||
22 | Sec. 7.
The provisions of "The Illinois Administrative | ||||||
23 | Procedure
Act", as now or hereafter amended, are hereby | ||||||
24 | expressly adopted and
incorporated herein as though a part of |
| |||||||
| |||||||
1 | this Act, and shall apply to all
administrative rules and | ||||||
2 | procedures of the Director and the Department
of Financial | ||||||
3 | Institutions under this Act, except that the provisions of
the | ||||||
4 | Administrative Procedure Act regarding contested cases shall | ||||||
5 | not
apply to actions of the Director under Section 15.1 of "An | ||||||
6 | Act in
relation to the definition, licensing and regulation of | ||||||
7 | community
currency exchanges and ambulatory currency | ||||||
8 | exchanges, and the operators
and employees thereof, and to make | ||||||
9 | an appropriation therefor, and to
provide penalties and | ||||||
10 | remedies for the violation thereof", approved June
30, 1943, as | ||||||
11 | amended, or Sections 8 and 61 of "The Illinois
Credit Union | ||||||
12 | Act" , or to
hearings under Section 20 of the "Uniform | ||||||
13 | Disposition of Unclaimed
Property Act" .
| ||||||
14 | (Source: P.A. 81-329.)
| ||||||
15 | (20 ILCS 1205/18.1)
| ||||||
16 | Sec. 18.1.
Transfer of administration of Uniform | ||||||
17 | Disposition of Unclaimed
Property Act to State Treasurer. The | ||||||
18 | rights, powers, duties, and functions
vested in the Department | ||||||
19 | of Financial Institutions to administer the Uniform
| ||||||
20 | Disposition of Unclaimed Property Act (superseded by the | ||||||
21 | Revised Uniform Unclaimed Property Act) are transferred to the | ||||||
22 | State Treasurer on
July 1, 1999 in accordance with Sections | ||||||
23 | 0.02 through 0.06 of the State
Treasurer Act; provided, | ||||||
24 | however, that the rights, powers, duties, and
functions | ||||||
25 | involving the examination of the records of any person that the |
| |||||||
| |||||||
1 | State
Treasurer has reason to believe has failed to report | ||||||
2 | properly under this Act
shall be transferred to the Office of | ||||||
3 | Banks and Real Estate if the person is
regulated by the Office | ||||||
4 | of Banks and Real Estate under the Illinois Banking
Act, the | ||||||
5 | Corporate Fiduciary Act, the Foreign Banking Office Act, the | ||||||
6 | Illinois
Savings and Loan Act of 1985, or the Savings Bank Act | ||||||
7 | and shall be retained by
the Department of Financial | ||||||
8 | Institutions if the person is doing business in the
State under | ||||||
9 | the supervision of the Department of Financial Institutions, | ||||||
10 | the
National Credit Union Administration, the Office of Thrift | ||||||
11 | Supervision, or the
Comptroller of the Currency.
| ||||||
12 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
13 | Section 17-35. The State Finance Act is amended by changing | ||||||
14 | Sections 6b-1 and 8.12 as follows:
| ||||||
15 | (30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)
| ||||||
16 | Sec. 6b-1.
There shall be paid into the State Pensions Fund | ||||||
17 | the funds and
proceeds from the sale of abandoned property as | ||||||
18 | provided in Section 18 of
the Revised Uniform "Uniform | ||||||
19 | Disposition of Unclaimed Property Act ", enacted by the
| ||||||
20 | Seventy-second General Assembly .
| ||||||
21 | (Source: Laws 1961, p. 3423.)
| ||||||
22 | (30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
| ||||||
23 | Sec. 8.12. State Pensions Fund.
|
| |||||||
| |||||||
1 | (a) The moneys in the State Pensions Fund shall be used | ||||||
2 | exclusively
for the administration of the Revised Uniform | ||||||
3 | Disposition of Unclaimed Property Act and
for the expenses | ||||||
4 | incurred by the Auditor General for administering the | ||||||
5 | provisions of Section 2-8.1 of the Illinois State Auditing Act | ||||||
6 | and for operational expenses of the Office of the State | ||||||
7 | Treasurer and for the funding of the unfunded liabilities of | ||||||
8 | the designated retirement systems. Beginning in State fiscal | ||||||
9 | year 2018, payments to the designated retirement systems under | ||||||
10 | this Section shall be in addition to, and not in lieu of, any | ||||||
11 | State contributions required under the Illinois Pension Code.
| ||||||
12 | "Designated retirement systems" means:
| ||||||
13 | (1) the State Employees' Retirement System of | ||||||
14 | Illinois;
| ||||||
15 | (2) the Teachers' Retirement System of the State of | ||||||
16 | Illinois;
| ||||||
17 | (3) the State Universities Retirement System;
| ||||||
18 | (4) the Judges Retirement System of Illinois; and
| ||||||
19 | (5) the General Assembly Retirement System.
| ||||||
20 | (b) Each year the General Assembly may make appropriations | ||||||
21 | from
the State Pensions Fund for the administration of the | ||||||
22 | Revised Uniform Disposition of
Unclaimed Property Act.
| ||||||
23 | Each month, the Commissioner of the Office of Banks and | ||||||
24 | Real Estate shall
certify to the State Treasurer the actual | ||||||
25 | expenditures that the Office of
Banks and Real Estate incurred | ||||||
26 | conducting unclaimed property examinations under
the Uniform |
| |||||||
| |||||||
1 | Disposition of Unclaimed Property Act during the immediately
| ||||||
2 | preceding month. Within a reasonable
time following the | ||||||
3 | acceptance of such certification by the State Treasurer, the
| ||||||
4 | State Treasurer shall pay from its appropriation from the State | ||||||
5 | Pensions Fund
to the Bank and Trust Company Fund, the Savings | ||||||
6 | Bank Regulatory Fund, and the Residential Finance
Regulatory | ||||||
7 | Fund an amount equal to the expenditures incurred by each Fund | ||||||
8 | for
that month.
| ||||||
9 | Each month, the Director of Financial Institutions shall
| ||||||
10 | certify to the State Treasurer the actual expenditures that the | ||||||
11 | Department of
Financial Institutions incurred conducting | ||||||
12 | unclaimed property examinations
under the Uniform Disposition | ||||||
13 | of Unclaimed Property Act during the immediately
preceding | ||||||
14 | month. Within a reasonable time following the acceptance of | ||||||
15 | such
certification by the State Treasurer, the State Treasurer | ||||||
16 | shall pay from its
appropriation from the State Pensions Fund
| ||||||
17 | to the Financial Institution Fund and the Credit Union Fund
an | ||||||
18 | amount equal to the expenditures incurred by each Fund for
that | ||||||
19 | month.
| ||||||
20 | (c) As soon as possible after the effective date of this | ||||||
21 | amendatory Act of the 93rd General Assembly, the General | ||||||
22 | Assembly shall appropriate from the State Pensions Fund (1) to | ||||||
23 | the State Universities Retirement System the amount certified | ||||||
24 | under Section 15-165 during the prior year, (2) to the Judges | ||||||
25 | Retirement System of Illinois the amount certified under | ||||||
26 | Section 18-140 during the prior year, and (3) to the General |
| |||||||
| |||||||
1 | Assembly Retirement System the amount certified under Section | ||||||
2 | 2-134 during the prior year as part of the required
State | ||||||
3 | contributions to each of those designated retirement systems; | ||||||
4 | except that amounts appropriated under this subsection (c) in | ||||||
5 | State fiscal year 2005 shall not reduce the amount in the State | ||||||
6 | Pensions Fund below $5,000,000. If the amount in the State | ||||||
7 | Pensions Fund does not exceed the sum of the amounts certified | ||||||
8 | in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, | ||||||
9 | the amount paid to each designated retirement system under this | ||||||
10 | subsection shall be reduced in proportion to the amount | ||||||
11 | certified by each of those designated retirement systems.
| ||||||
12 | (c-5) For fiscal years 2006 through 2017, the General | ||||||
13 | Assembly shall appropriate from the State Pensions Fund to the | ||||||
14 | State Universities Retirement System the amount estimated to be | ||||||
15 | available during the fiscal year in the State Pensions Fund; | ||||||
16 | provided, however, that the amounts appropriated under this | ||||||
17 | subsection (c-5) shall not reduce the amount in the State | ||||||
18 | Pensions Fund below $5,000,000.
| ||||||
19 | (c-6) For fiscal year 2018 and each fiscal year thereafter, | ||||||
20 | as soon as may be practical after any money is deposited into | ||||||
21 | the State Pensions Fund from the Unclaimed Property Trust Fund, | ||||||
22 | the State Treasurer shall apportion the deposited amount among | ||||||
23 | the designated retirement systems as defined in subsection (a) | ||||||
24 | to reduce their actuarial reserve deficiencies. The State | ||||||
25 | Comptroller and State Treasurer shall pay the apportioned | ||||||
26 | amounts to the designated retirement systems to fund the |
| |||||||
| |||||||
1 | unfunded liabilities of the designated retirement systems. The | ||||||
2 | amount apportioned to each designated retirement system shall | ||||||
3 | constitute a portion of the amount estimated to be available | ||||||
4 | for appropriation from the State Pensions Fund that is the same | ||||||
5 | as that retirement system's portion of the total actual reserve | ||||||
6 | deficiency of the systems, as determined annually by the | ||||||
7 | Governor's Office of Management and Budget at the request of | ||||||
8 | the State Treasurer. The amounts apportioned under this | ||||||
9 | subsection shall not reduce the amount in the State Pensions | ||||||
10 | Fund below $5,000,000. | ||||||
11 | (d) The
Governor's Office of Management and Budget shall | ||||||
12 | determine the individual and total
reserve deficiencies of the | ||||||
13 | designated retirement systems. For this purpose,
the
| ||||||
14 | Governor's Office of Management and Budget shall utilize the | ||||||
15 | latest available audit and actuarial
reports of each of the | ||||||
16 | retirement systems and the relevant reports and
statistics of | ||||||
17 | the Public Employee Pension Fund Division of the Department of
| ||||||
18 | Insurance.
| ||||||
19 | (d-1) As soon as practicable after the effective date of | ||||||
20 | this
amendatory Act of the 93rd General Assembly, the | ||||||
21 | Comptroller shall
direct and the Treasurer shall transfer from | ||||||
22 | the State Pensions Fund to
the General Revenue Fund, as funds | ||||||
23 | become available, a sum equal to the
amounts that would have | ||||||
24 | been paid
from the State Pensions Fund to the Teachers' | ||||||
25 | Retirement System of the State
of Illinois,
the State | ||||||
26 | Universities Retirement System, the Judges Retirement
System |
| |||||||
| |||||||
1 | of Illinois, the
General Assembly Retirement System, and the | ||||||
2 | State Employees'
Retirement System
of Illinois
after the | ||||||
3 | effective date of this
amendatory Act during the remainder of | ||||||
4 | fiscal year 2004 to the
designated retirement systems from the | ||||||
5 | appropriations provided for in
this Section if the transfers | ||||||
6 | provided in Section 6z-61 had not
occurred. The transfers | ||||||
7 | described in this subsection (d-1) are to
partially repay the | ||||||
8 | General Revenue Fund for the costs associated with
the bonds | ||||||
9 | used to fund the moneys transferred to the designated
| ||||||
10 | retirement systems under Section 6z-61.
| ||||||
11 | (e) The changes to this Section made by this amendatory Act | ||||||
12 | of 1994 shall
first apply to distributions from the Fund for | ||||||
13 | State fiscal year 1996.
| ||||||
14 | (Source: P.A. 98-24, eff. 6-19-13; 98-463, eff. 8-16-13; | ||||||
15 | 98-674, eff. 6-30-14; 98-1081, eff. 1-1-15; 99-8, eff. 7-9-15; | ||||||
16 | 99-78, eff. 7-20-15; 99-523, eff. 6-30-16.)
| ||||||
17 | Section 17-40. The State Officers and Employees Money | ||||||
18 | Disposition Act is amended by changing Section 2 as follows:
| ||||||
19 | (30 ILCS 230/2) (from Ch. 127, par. 171)
| ||||||
20 | Sec. 2. Accounts of money received; payment into State | ||||||
21 | treasury.
| ||||||
22 | (a) Every officer, board, commission, commissioner, | ||||||
23 | department,
institution, arm or agency brought within the | ||||||
24 | provisions of this Act by
Section 1 shall keep in proper books |
| |||||||
| |||||||
1 | a detailed itemized account
of all moneys received for or on | ||||||
2 | behalf of the State of Illinois, showing
the date
of receipt, | ||||||
3 | the payor, and purpose and amount, and the date and manner
of | ||||||
4 | disbursement as hereinafter provided, and, unless a different | ||||||
5 | time of
payment is expressly provided by law or by rules or | ||||||
6 | regulations promulgated
under subsection (b) of this Section, | ||||||
7 | shall pay into the State treasury
the gross amount of money so | ||||||
8 | received on the day of actual physical
receipt with respect to | ||||||
9 | any single item of receipt exceeding $10,000,
within 24 hours | ||||||
10 | of actual physical receipt with respect to an accumulation
of | ||||||
11 | receipts of $10,000 or more, or within 48 hours of actual | ||||||
12 | physical
receipt with respect to an accumulation of receipts | ||||||
13 | exceeding $500 but less
than $10,000, disregarding holidays, | ||||||
14 | Saturdays and Sundays, after the receipt
of same, without any | ||||||
15 | deduction on account of salaries, fees, costs, charges,
| ||||||
16 | expenses or claims of any description whatever; provided that:
| ||||||
17 | (1) the provisions of (i) Section 2505-475 of the
| ||||||
18 | Department
of Revenue Law (20 ILCS 2505/2505-475), (ii) any | ||||||
19 | specific taxing statute
authorizing a claim for
credit | ||||||
20 | procedure instead of the actual making of refunds, (iii) | ||||||
21 | Section 505 of
the Illinois Controlled Substances
Act, (iv) | ||||||
22 | Section 85 of the Methamphetamine Control and Community | ||||||
23 | Protection Act, authorizing the Director of
State Police to | ||||||
24 | dispose of forfeited property, which includes the sale and
| ||||||
25 | disposition of the proceeds of the sale of forfeited | ||||||
26 | property, and the
Department of Central Management |
| |||||||
| |||||||
1 | Services to be reimbursed for costs incurred
with the sales | ||||||
2 | of forfeited vehicles, boats or aircraft and to pay to bona | ||||||
3 | fide
or innocent purchasers, conditional sales vendors or | ||||||
4 | mortgagees of such
vehicles, boats or aircraft their | ||||||
5 | interest in such vehicles, boats or aircraft,
and (v)
| ||||||
6 | Section 6b-2 of the State Finance Act,
establishing | ||||||
7 | procedures for handling cash receipts from the sale of | ||||||
8 | pari-mutuel
wagering tickets, shall not be deemed to be in | ||||||
9 | conflict with the requirements
of this Section;
| ||||||
10 | (2) any fees received by the State
Registrar of Vital | ||||||
11 | Records pursuant to the Vital Records Act which are
| ||||||
12 | insufficient in amount may be returned by the Registrar as | ||||||
13 | provided in that
Act;
| ||||||
14 | (3) any fees received by the Department of
Public | ||||||
15 | Health under the Food Handling Regulation Enforcement Act | ||||||
16 | that are
submitted for renewal of an expired food service | ||||||
17 | sanitation manager certificate
may be returned by the | ||||||
18 | Director as provided in that Act;
| ||||||
19 | (3.5) the State Treasurer may permit the deduction of | ||||||
20 | fees by
third-party unclaimed property examiners from the | ||||||
21 | property recovered by the
examiners for the State of | ||||||
22 | Illinois during examinations of holders located
outside | ||||||
23 | the State under which the Office of the Treasurer has | ||||||
24 | agreed to pay for
the examinations based upon a percentage, | ||||||
25 | set by rule by the State Treasurer in
accordance with the | ||||||
26 | Revised Uniform Unclaimed Property Illinois Administrative |
| |||||||
| |||||||
1 | Procedure Act, of the property
recovered during the
| ||||||
2 | examination; and
| ||||||
3 | (4) if the amount of money received
does not exceed | ||||||
4 | $500, such money may be retained and need not be paid
into | ||||||
5 | the State treasury until the total amount of money so | ||||||
6 | received
exceeds $500, or until the next succeeding 1st or | ||||||
7 | 15th day of each month
(or until the next business day if | ||||||
8 | these days fall on Sunday or a
holiday), whichever is | ||||||
9 | earlier, at which earlier time such money shall
be paid | ||||||
10 | into the State treasury, except that if a local bank or | ||||||
11 | savings
and loan association account has been authorized by | ||||||
12 | law, any balances shall
be paid into the State treasury on | ||||||
13 | Monday of each week if more than $500
is to be deposited in | ||||||
14 | any fund.
| ||||||
15 | Single items of receipt exceeding $10,000 received after 2 p.m. | ||||||
16 | on a working
day may be deemed to have been received on the | ||||||
17 | next working day for purposes of
fulfilling the requirement | ||||||
18 | that the item be deposited on the day of actual
physical | ||||||
19 | receipt.
| ||||||
20 | No money belonging to or left for the use of the State | ||||||
21 | shall be expended or
applied except in consequence of an | ||||||
22 | appropriation made by law and upon the
warrant of the State | ||||||
23 | Comptroller. However, payments made by the Comptroller
to | ||||||
24 | persons by direct deposit need not be made upon the warrant of | ||||||
25 | the
Comptroller, but if not made upon a warrant, shall be made | ||||||
26 | in accordance
with Section 9.02 of the State Comptroller Act. |
| |||||||
| |||||||
1 | All moneys so paid
into the State treasury shall, unless | ||||||
2 | required by some statute to be held in
the State treasury in a | ||||||
3 | separate or special fund, be covered into the General
Revenue | ||||||
4 | Fund in the State treasury. Moneys received
in the form of | ||||||
5 | checks, drafts or similar instruments shall be properly
| ||||||
6 | endorsed, if necessary, and delivered to the State Treasurer | ||||||
7 | for
collection. The State Treasurer shall remit such collected | ||||||
8 | funds to the
depositing officer, board, commission, | ||||||
9 | commissioner, department,
institution, arm or agency by | ||||||
10 | Treasurers Draft or through electronic funds
transfer. The | ||||||
11 | draft or notification of the electronic funds
transfer shall be | ||||||
12 | provided to the State Comptroller to allow deposit into
the | ||||||
13 | appropriate fund.
| ||||||
14 | (b) Different time periods for the payment of public funds | ||||||
15 | into the State
treasury or to the State Treasurer, in excess of | ||||||
16 | the periods established
in subsection (a) of this Section, but | ||||||
17 | not in excess of 30 days after receipt
of such funds, may be | ||||||
18 | established and revised from time to time by rules or
| ||||||
19 | regulations promulgated jointly by the State Treasurer and the | ||||||
20 | State
Comptroller in accordance with the Illinois | ||||||
21 | Administrative
Procedure Act. The different
time periods | ||||||
22 | established by rule or regulation under this subsection may | ||||||
23 | vary
according to the nature and amounts of the funds received, | ||||||
24 | the locations at
which the funds are received, whether | ||||||
25 | compliance with the deposit requirements
specified in | ||||||
26 | subsection (a) of this Section would be cost effective, and |
| |||||||
| |||||||
1 | such
other circumstances and conditions as the promulgating | ||||||
2 | authorities consider to
be appropriate. The Treasurer and the | ||||||
3 | Comptroller shall review all such
different time
periods | ||||||
4 | established pursuant to this subsection every 2 years from the
| ||||||
5 | establishment thereof and upon such review, unless it is | ||||||
6 | determined that it
is economically unfeasible for the agency to | ||||||
7 | comply with the provisions of
subsection (a), shall repeal such | ||||||
8 | different time period.
| ||||||
9 | (Source: P.A. 94-556, eff. 9-11-05.)
| ||||||
10 | Section 17-45. The Counties Code is amended by changing | ||||||
11 | Section 3-3034 as follows:
| ||||||
12 | (55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)
| ||||||
13 | Sec. 3-3034. Disposition of body. After the inquest the | ||||||
14 | coroner
may deliver the body or human remains of the deceased | ||||||
15 | to the family of the deceased or, if there are no family | ||||||
16 | members to accept the body or the remains, then to friends of | ||||||
17 | the deceased, if there be any, but
if not, the coroner shall | ||||||
18 | cause the body or the remains to be decently buried, cremated, | ||||||
19 | or donated for medical science purposes, the expenses to be | ||||||
20 | paid
from the property of the deceased, if there is sufficient, | ||||||
21 | if not, by the
county. The coroner may not approve the | ||||||
22 | cremation or donation of the body if it is necessary to | ||||||
23 | preserve the body for law enforcement purposes. If the State | ||||||
24 | Treasurer, pursuant to the Revised Uniform Disposition of |
| |||||||
| |||||||
1 | Unclaimed Property Act, delivers human remains to the coroner, | ||||||
2 | the coroner shall cause the human remains to be disposed of as | ||||||
3 | provided in this Section.
If the police department of any | ||||||
4 | municipality or county investigates abandoned cremated | ||||||
5 | remains, determines that they are human remains, and cannot | ||||||
6 | locate the owner of the remains, then the police shall deliver | ||||||
7 | the remains to the coroner, and the coroner shall cause the | ||||||
8 | remains to be disposed of as provided in this Section.
| ||||||
9 | (Source: P.A. 96-1339, eff. 7-27-10; 97-679, eff. 2-6-12.)
| ||||||
10 | Section 17-50. The Illinois Banking Act is amended by | ||||||
11 | changing Sections 48, 48.1, 48.3, and 65 as follows:
| ||||||
12 | (205 ILCS 5/48)
| ||||||
13 | Sec. 48. Secretary's powers; duties. The Secretary shall | ||||||
14 | have the
powers and authority, and is charged with the duties | ||||||
15 | and responsibilities
designated in this Act, and a State bank | ||||||
16 | shall not be subject to any
other visitorial power other than | ||||||
17 | as authorized by this Act, except those
vested in the courts, | ||||||
18 | or upon prior consultation with the Secretary, a
foreign bank | ||||||
19 | regulator with an appropriate supervisory interest in the | ||||||
20 | parent
or affiliate of a state bank. In the performance of the | ||||||
21 | Secretary's
duties:
| ||||||
22 | (1) The Commissioner shall call for statements from all | ||||||
23 | State banks
as provided in Section 47 at least one time | ||||||
24 | during each calendar quarter.
|
| |||||||
| |||||||
1 | (2) (a) The Commissioner, as often as the Commissioner | ||||||
2 | shall deem
necessary or
proper, and no less frequently than | ||||||
3 | 18 months following the preceding
examination, shall | ||||||
4 | appoint a suitable person or
persons to make an examination | ||||||
5 | of the affairs of every State bank,
except that for every | ||||||
6 | eligible State bank, as defined by regulation, the
| ||||||
7 | Commissioner in lieu of the examination may accept on an | ||||||
8 | alternating basis the
examination made by the eligible | ||||||
9 | State bank's appropriate federal banking
agency pursuant | ||||||
10 | to Section 111 of the Federal Deposit Insurance Corporation
| ||||||
11 | Improvement Act of 1991, provided the appropriate federal | ||||||
12 | banking agency has
made such an examination. A person so | ||||||
13 | appointed shall not be a stockholder or
officer or employee | ||||||
14 | of
any bank which that person may be directed to examine, | ||||||
15 | and shall have
powers to make a thorough examination into | ||||||
16 | all the affairs of the bank and
in so doing to examine any | ||||||
17 | of the officers or agents or employees thereof
on oath and | ||||||
18 | shall make a full and detailed report of the condition of | ||||||
19 | the
bank to the Commissioner. In making the examination the | ||||||
20 | examiners shall
include an examination of the affairs of | ||||||
21 | all the affiliates of the bank, as
defined in subsection | ||||||
22 | (b) of Section 35.2 of this Act, or subsidiaries of the
| ||||||
23 | bank as shall be
necessary to disclose fully the conditions | ||||||
24 | of the subsidiaries or
affiliates, the relations
between | ||||||
25 | the bank and the subsidiaries or affiliates and the effect | ||||||
26 | of those
relations upon
the affairs of the bank, and in |
| |||||||
| |||||||
1 | connection therewith shall have power to
examine any of the | ||||||
2 | officers, directors, agents, or employees of the
| ||||||
3 | subsidiaries or affiliates
on oath. After May 31, 1997, the | ||||||
4 | Commissioner may enter into cooperative
agreements
with | ||||||
5 | state regulatory authorities of other states to provide for | ||||||
6 | examination of
State bank branches in those states, and the | ||||||
7 | Commissioner may accept reports
of examinations of State | ||||||
8 | bank branches from those state regulatory authorities.
| ||||||
9 | These cooperative agreements may set forth the manner in | ||||||
10 | which the other state
regulatory authorities may be | ||||||
11 | compensated for examinations prepared for and
submitted to | ||||||
12 | the Commissioner.
| ||||||
13 | (b) After May 31, 1997, the Commissioner is authorized | ||||||
14 | to examine, as often
as the Commissioner shall deem | ||||||
15 | necessary or proper, branches of out-of-state
banks. The | ||||||
16 | Commissioner may establish and may assess fees to be paid | ||||||
17 | to the
Commissioner for examinations under this subsection | ||||||
18 | (b). The fees shall be
borne by the out-of-state bank, | ||||||
19 | unless the fees are borne by the state
regulatory authority | ||||||
20 | that chartered the out-of-state bank, as determined by a
| ||||||
21 | cooperative agreement between the Commissioner and the | ||||||
22 | state regulatory
authority that chartered the out-of-state | ||||||
23 | bank.
| ||||||
24 | (2.1) Pursuant to paragraph (a) of subsection (6) of | ||||||
25 | this Section, the Secretary shall adopt rules that ensure | ||||||
26 | consistency and due process in the examination process. The |
| |||||||
| |||||||
1 | Secretary may also establish guidelines that (i) define the | ||||||
2 | scope of the examination process and (ii) clarify | ||||||
3 | examination items to be resolved. The rules, formal | ||||||
4 | guidance, interpretive letters, or opinions furnished to | ||||||
5 | State banks by the Secretary may be relied upon by the | ||||||
6 | State banks. | ||||||
7 | (2.5) Whenever any State bank, any subsidiary or | ||||||
8 | affiliate of a State
bank, or after May 31, 1997, any | ||||||
9 | branch of an out-of-state bank causes to
be performed, by | ||||||
10 | contract or otherwise, any bank services
for itself, | ||||||
11 | whether on or off its premises:
| ||||||
12 | (a) that performance shall be subject to | ||||||
13 | examination by the Commissioner
to the same extent as | ||||||
14 | if services were being performed by the bank or, after
| ||||||
15 | May 31, 1997, branch of the out-of-state bank itself
on | ||||||
16 | its own premises; and
| ||||||
17 | (b) the bank or, after May 31, 1997, branch of the | ||||||
18 | out-of-state bank
shall notify the Commissioner of the | ||||||
19 | existence of a service
relationship. The notification | ||||||
20 | shall be submitted with the first statement
of | ||||||
21 | condition (as required by Section 47 of this Act) due | ||||||
22 | after the making
of the service contract or the | ||||||
23 | performance of the service, whichever occurs
first. | ||||||
24 | The Commissioner shall be notified of each subsequent | ||||||
25 | contract in
the same manner.
| ||||||
26 | For purposes of this subsection (2.5), the term "bank |
| |||||||
| |||||||
1 | services" means
services such as sorting and posting of | ||||||
2 | checks and deposits, computation
and posting of interest | ||||||
3 | and other credits and charges, preparation and
mailing of | ||||||
4 | checks, statements, notices, and similar items, or any | ||||||
5 | other
clerical, bookkeeping, accounting, statistical, or | ||||||
6 | similar functions
performed for a State bank, including but | ||||||
7 | not limited to electronic data
processing related to those | ||||||
8 | bank services.
| ||||||
9 | (3) The expense of administering this Act, including | ||||||
10 | the expense of
the examinations of State banks as provided | ||||||
11 | in this Act, shall to the extent
of the amounts resulting | ||||||
12 | from the fees provided for in paragraphs (a),
(a-2), and | ||||||
13 | (b) of this subsection (3) be assessed against and borne by | ||||||
14 | the
State banks:
| ||||||
15 | (a) Each bank shall pay to the Secretary a Call | ||||||
16 | Report Fee which
shall be paid in quarterly | ||||||
17 | installments equal
to one-fourth of the sum of the | ||||||
18 | annual fixed fee of $800, plus a variable
fee based on | ||||||
19 | the assets shown on the quarterly statement of | ||||||
20 | condition
delivered to the Secretary in accordance | ||||||
21 | with Section 47 for the
preceding quarter according to | ||||||
22 | the following schedule: 16¢ per $1,000 of
the first | ||||||
23 | $5,000,000 of total assets, 15¢ per $1,000 of the next
| ||||||
24 | $20,000,000 of total assets, 13¢ per $1,000 of the next | ||||||
25 | $75,000,000 of
total assets, 9¢ per $1,000 of the next | ||||||
26 | $400,000,000 of total assets, 7¢
per $1,000 of the next |
| |||||||
| |||||||
1 | $500,000,000 of total assets, and 5¢ per $1,000 of
all | ||||||
2 | assets in excess of $1,000,000,000, of the State bank. | ||||||
3 | The Call Report
Fee shall be calculated by the | ||||||
4 | Secretary and billed to the banks for
remittance at the | ||||||
5 | time of the quarterly statements of condition
provided | ||||||
6 | for in Section 47. The Secretary may require payment of | ||||||
7 | the fees
provided in this Section by an electronic | ||||||
8 | transfer of funds or an automatic
debit of an account | ||||||
9 | of each of the State banks. In case more than one
| ||||||
10 | examination of any
bank is deemed by the Secretary to | ||||||
11 | be necessary in any examination
frequency cycle | ||||||
12 | specified in subsection 2(a) of this Section,
and is | ||||||
13 | performed at his direction, the Secretary may
assess a | ||||||
14 | reasonable additional fee to recover the cost of the | ||||||
15 | additional
examination ; provided, however, that an | ||||||
16 | examination conducted at the request
of the State | ||||||
17 | Treasurer pursuant to the Uniform Disposition of | ||||||
18 | Unclaimed
Property Act shall not be deemed to be an | ||||||
19 | additional examination under this
Section .
In lieu
of | ||||||
20 | the method and amounts set forth in this paragraph (a) | ||||||
21 | for the calculation
of the Call Report Fee, the | ||||||
22 | Secretary may specify by
rule that the Call Report Fees | ||||||
23 | provided by this Section may be assessed
semiannually | ||||||
24 | or some other period and may provide in the rule the | ||||||
25 | formula to
be
used for calculating and assessing the | ||||||
26 | periodic Call Report Fees to be paid by
State
banks.
|
| |||||||
| |||||||
1 | (a-1) If in the opinion of the Commissioner an | ||||||
2 | emergency exists or
appears likely, the Commissioner | ||||||
3 | may assign an examiner or examiners to
monitor the | ||||||
4 | affairs of a State bank with whatever frequency he | ||||||
5 | deems
appropriate, including but not limited to a daily | ||||||
6 | basis. The reasonable
and necessary expenses of the | ||||||
7 | Commissioner during the period of the monitoring
shall | ||||||
8 | be borne by the subject bank. The Commissioner shall | ||||||
9 | furnish the
State bank a statement of time and expenses | ||||||
10 | if requested to do so within 30
days of the conclusion | ||||||
11 | of the monitoring period.
| ||||||
12 | (a-2) On and after January 1, 1990, the reasonable | ||||||
13 | and necessary
expenses of the Commissioner during | ||||||
14 | examination of the performance of
electronic data | ||||||
15 | processing services under subsection (2.5) shall be
| ||||||
16 | borne by the banks for which the services are provided. | ||||||
17 | An amount, based
upon a fee structure prescribed by the | ||||||
18 | Commissioner, shall be paid by the
banks or, after May | ||||||
19 | 31, 1997, branches of out-of-state banks receiving the
| ||||||
20 | electronic data processing services along with the
| ||||||
21 | Call Report Fee assessed under paragraph (a) of this
| ||||||
22 | subsection (3).
| ||||||
23 | (a-3) After May 31, 1997, the reasonable and | ||||||
24 | necessary expenses of the
Commissioner during | ||||||
25 | examination of the performance of electronic data
| ||||||
26 | processing services under subsection (2.5) at or on |
| |||||||
| |||||||
1 | behalf of branches of
out-of-state banks shall be borne | ||||||
2 | by the out-of-state banks, unless those
expenses are | ||||||
3 | borne by the state regulatory authorities that | ||||||
4 | chartered the
out-of-state banks, as determined by | ||||||
5 | cooperative agreements between the
Commissioner and | ||||||
6 | the state regulatory authorities that chartered the
| ||||||
7 | out-of-state banks.
| ||||||
8 | (b) "Fiscal year" for purposes of this Section 48 | ||||||
9 | is defined as a
period beginning July 1 of any year and | ||||||
10 | ending June 30 of the next year.
The Commissioner shall | ||||||
11 | receive for each fiscal year, commencing with the
| ||||||
12 | fiscal year ending June 30, 1987, a contingent fee | ||||||
13 | equal to the lesser of
the aggregate of the fees paid | ||||||
14 | by all State banks under paragraph (a) of
subsection | ||||||
15 | (3) for that year, or the amount, if any, whereby the | ||||||
16 | aggregate
of the administration expenses, as defined | ||||||
17 | in paragraph (c), for that
fiscal year exceeds the sum | ||||||
18 | of the aggregate of the fees payable by all
State banks | ||||||
19 | for that year under paragraph (a) of subsection (3),
| ||||||
20 | plus any amounts transferred into the Bank and Trust | ||||||
21 | Company Fund from the
State Pensions Fund for that | ||||||
22 | year,
plus all
other amounts collected by the | ||||||
23 | Commissioner for that year under any
other provision of | ||||||
24 | this Act, plus the aggregate of all fees
collected for | ||||||
25 | that year by the Commissioner under the Corporate | ||||||
26 | Fiduciary
Act, excluding the receivership fees |
| |||||||
| |||||||
1 | provided for in Section 5-10 of the
Corporate Fiduciary | ||||||
2 | Act, and the Foreign Banking Office Act.
The aggregate | ||||||
3 | amount of the contingent
fee thus arrived at for any | ||||||
4 | fiscal year shall be apportioned amongst,
assessed | ||||||
5 | upon, and paid by the State banks and foreign banking | ||||||
6 | corporations,
respectively, in the same proportion
| ||||||
7 | that the fee of each under paragraph (a) of subsection | ||||||
8 | (3), respectively,
for that year bears to the aggregate | ||||||
9 | for that year of the fees collected
under paragraph (a) | ||||||
10 | of subsection (3). The aggregate amount of the
| ||||||
11 | contingent fee, and the portion thereof to be assessed | ||||||
12 | upon each State
bank and foreign banking corporation,
| ||||||
13 | respectively, shall be determined by the Commissioner | ||||||
14 | and shall be paid by
each, respectively, within 120 | ||||||
15 | days of the close of the period for which
the | ||||||
16 | contingent fee is computed and is payable, and the | ||||||
17 | Commissioner shall
give 20 days' days advance notice of | ||||||
18 | the amount of the contingent fee payable by
the State | ||||||
19 | bank and of the date fixed by the Commissioner for | ||||||
20 | payment of
the fee.
| ||||||
21 | (c) The "administration expenses" for any fiscal | ||||||
22 | year shall mean the
ordinary and contingent expenses | ||||||
23 | for that year incident to making the
examinations | ||||||
24 | provided for by, and for otherwise administering, this | ||||||
25 | Act,
the Corporate Fiduciary Act, excluding the | ||||||
26 | expenses paid from the
Corporate Fiduciary |
| |||||||
| |||||||
1 | Receivership account in the Bank and Trust Company
| ||||||
2 | Fund, the Foreign Banking Office Act,
the Electronic | ||||||
3 | Fund Transfer Act,
and the Illinois Bank Examiners'
| ||||||
4 | Education Foundation Act, including all salaries and | ||||||
5 | other
compensation paid for personal services rendered | ||||||
6 | for the State by
officers or employees of the State, | ||||||
7 | including the Commissioner and the
Deputy | ||||||
8 | Commissioners, communication equipment and services, | ||||||
9 | office furnishings, surety bond
premiums, and travel | ||||||
10 | expenses of those officers and employees, employees,
| ||||||
11 | expenditures or charges for the acquisition, | ||||||
12 | enlargement or improvement
of, or for the use of, any | ||||||
13 | office space, building, or structure, or
expenditures | ||||||
14 | for the maintenance thereof or for furnishing heat, | ||||||
15 | light,
or power with respect thereto, all to the extent | ||||||
16 | that those expenditures
are directly incidental to | ||||||
17 | such examinations or administration.
The Commissioner | ||||||
18 | shall not be required by paragraphs (c) or (d-1) of | ||||||
19 | this
subsection (3) to maintain in any fiscal year's | ||||||
20 | budget appropriated reserves
for accrued vacation and | ||||||
21 | accrued sick leave that is required to be paid to
| ||||||
22 | employees of the Commissioner upon termination of | ||||||
23 | their service with the
Commissioner in an amount that | ||||||
24 | is more than is reasonably anticipated to be
necessary | ||||||
25 | for any anticipated turnover in employees, whether due | ||||||
26 | to normal
attrition or due to layoffs, terminations, or |
| |||||||
| |||||||
1 | resignations.
| ||||||
2 | (d) The aggregate of all fees collected by the | ||||||
3 | Secretary under
this Act, the Corporate Fiduciary Act,
| ||||||
4 | or the Foreign Banking Office Act on
and after July 1, | ||||||
5 | 1979, shall be paid promptly after receipt of the same,
| ||||||
6 | accompanied by a detailed statement thereof, into the | ||||||
7 | State treasury and
shall be set apart in a special fund | ||||||
8 | to be known as the "Bank and Trust
Company Fund", | ||||||
9 | except as provided in paragraph (c) of subsection (11) | ||||||
10 | of
this Section. All earnings received from | ||||||
11 | investments of funds in the Bank
and
Trust Company Fund | ||||||
12 | shall be deposited in the Bank and Trust Company Fund
| ||||||
13 | and may be used for the same purposes as fees deposited | ||||||
14 | in that Fund. The
amount from time to time deposited | ||||||
15 | into the Bank and
Trust Company Fund shall be used: (i) | ||||||
16 | to offset the ordinary administrative
expenses of the | ||||||
17 | Secretary as defined in
this Section or (ii) as a | ||||||
18 | credit against fees under paragraph (d-1) of this | ||||||
19 | subsection (3). Nothing in this amendatory Act of 1979 | ||||||
20 | shall prevent
continuing the practice of paying | ||||||
21 | expenses involving salaries, retirement,
social | ||||||
22 | security, and State-paid insurance premiums of State | ||||||
23 | officers by
appropriations from the General Revenue | ||||||
24 | Fund. However, the General Revenue
Fund shall be | ||||||
25 | reimbursed for those payments made on and after July 1, | ||||||
26 | 1979,
by an annual transfer of funds from the Bank and |
| |||||||
| |||||||
1 | Trust Company Fund. Moneys in the Bank and Trust | ||||||
2 | Company Fund may be transferred to the Professions | ||||||
3 | Indirect Cost Fund, as authorized under Section | ||||||
4 | 2105-300 of the Department of Professional Regulation | ||||||
5 | Law of the Civil Administrative Code of Illinois.
| ||||||
6 | Notwithstanding provisions in the State Finance | ||||||
7 | Act, as now or hereafter amended, or any other law to | ||||||
8 | the contrary, the sum of $18,788,847 shall be | ||||||
9 | transferred from the Bank and Trust Company Fund to the | ||||||
10 | Financial Institutions Settlement of 2008 Fund on the | ||||||
11 | effective date of this amendatory Act of the 95th | ||||||
12 | General Assembly, or as soon thereafter as practical. | ||||||
13 | Notwithstanding provisions in the State Finance | ||||||
14 | Act, as now or hereafter amended, or any other law to | ||||||
15 | the contrary, the Governor may, during any fiscal year | ||||||
16 | through January 10, 2011, from time to time direct the | ||||||
17 | State Treasurer and Comptroller to transfer a | ||||||
18 | specified sum not exceeding 10% of the revenues to be | ||||||
19 | deposited into the Bank and Trust Company Fund during | ||||||
20 | that fiscal year from that Fund to the General Revenue | ||||||
21 | Fund in order to help defray the State's operating | ||||||
22 | costs for the fiscal year. Notwithstanding provisions | ||||||
23 | in the State Finance Act, as now or hereafter amended, | ||||||
24 | or any other law to the contrary, the total sum | ||||||
25 | transferred during any fiscal year through January 10, | ||||||
26 | 2011, from the Bank and Trust Company Fund to the |
| |||||||
| |||||||
1 | General Revenue Fund pursuant to this provision shall | ||||||
2 | not exceed during any fiscal year 10% of the revenues | ||||||
3 | to be deposited into the Bank and Trust Company Fund | ||||||
4 | during that fiscal year. The State Treasurer and | ||||||
5 | Comptroller shall transfer the amounts designated | ||||||
6 | under this Section as soon as may be practicable after | ||||||
7 | receiving the direction to transfer from the Governor.
| ||||||
8 | (d-1) Adequate funds shall be available in the Bank | ||||||
9 | and Trust
Company Fund to permit the timely payment of | ||||||
10 | administration expenses. In
each fiscal year the total | ||||||
11 | administration expenses shall be deducted from
the | ||||||
12 | total fees collected by the Commissioner and the | ||||||
13 | remainder transferred
into the Cash Flow Reserve | ||||||
14 | Account, unless the balance of the Cash Flow
Reserve | ||||||
15 | Account prior to the transfer equals or exceeds
| ||||||
16 | one-fourth of the total initial appropriations from | ||||||
17 | the Bank and Trust
Company Fund for the subsequent | ||||||
18 | year, in which case the remainder shall be
credited to | ||||||
19 | State banks and foreign banking corporations
and | ||||||
20 | applied against their fees for the subsequent
year. The | ||||||
21 | amount credited to each State bank and foreign banking | ||||||
22 | corporation
shall be in the same proportion as the
Call | ||||||
23 | Report Fees paid by each for the year bear to the total | ||||||
24 | Call Report
Fees collected for the year. If, after a | ||||||
25 | transfer to the Cash Flow Reserve
Account is made or if | ||||||
26 | no remainder is available for transfer, the balance
of |
| |||||||
| |||||||
1 | the Cash Flow Reserve Account is less than one-fourth | ||||||
2 | of the total
initial appropriations for the subsequent | ||||||
3 | year and the amount transferred
is less than 5% of the | ||||||
4 | total Call Report Fees for the year, additional
amounts | ||||||
5 | needed to make the transfer equal to 5% of the total | ||||||
6 | Call Report
Fees for the year shall be apportioned | ||||||
7 | amongst, assessed upon, and
paid by the State banks and | ||||||
8 | foreign banking corporations
in the same proportion | ||||||
9 | that the Call Report Fees of each,
respectively, for | ||||||
10 | the year bear to the total Call Report Fees collected | ||||||
11 | for
the year. The additional amounts assessed shall be | ||||||
12 | transferred into the
Cash Flow Reserve Account. For | ||||||
13 | purposes of this paragraph (d-1), the
calculation of | ||||||
14 | the fees collected by the Commissioner shall exclude | ||||||
15 | the
receivership fees provided for in Section 5-10 of | ||||||
16 | the Corporate Fiduciary Act.
| ||||||
17 | (e) The Commissioner may upon request certify to | ||||||
18 | any public record
in his keeping and shall have | ||||||
19 | authority to levy a reasonable charge for
issuing | ||||||
20 | certifications of any public record in his keeping.
| ||||||
21 | (f) In addition to fees authorized elsewhere in | ||||||
22 | this Act, the
Commissioner
may, in connection with a | ||||||
23 | review, approval, or provision of a service, levy a
| ||||||
24 | reasonable charge to recover the cost of the review, | ||||||
25 | approval, or service.
| ||||||
26 | (4) Nothing contained in this Act shall be construed to |
| |||||||
| |||||||
1 | limit the
obligation relative to examinations and reports | ||||||
2 | of any State bank, deposits
in which are to any extent | ||||||
3 | insured by the United States or any agency
thereof, nor to | ||||||
4 | limit in any way the powers of the Commissioner with
| ||||||
5 | reference to examinations and reports of that bank.
| ||||||
6 | (5) The nature and condition of the assets in or | ||||||
7 | investment of any
bonus, pension, or profit sharing plan | ||||||
8 | for officers or employees of every
State bank or, after May | ||||||
9 | 31, 1997, branch of an out-of-state bank shall be
deemed to | ||||||
10 | be included in the affairs of that State
bank or branch of | ||||||
11 | an out-of-state bank subject to examination by the
| ||||||
12 | Commissioner under the
provisions of subsection (2) of this | ||||||
13 | Section, and if the Commissioner
shall find from an | ||||||
14 | examination that the condition of or operation
of the | ||||||
15 | investments or assets of the plan is unlawful, fraudulent, | ||||||
16 | or
unsafe, or that any trustee has abused his trust, the | ||||||
17 | Commissioner
shall, if the situation so found by the | ||||||
18 | Commissioner shall not be
corrected to his satisfaction | ||||||
19 | within 60 days after the Commissioner has
given notice to | ||||||
20 | the board of directors of the State bank or out-of-state
| ||||||
21 | bank of his
findings, report the facts to the Attorney | ||||||
22 | General who shall thereupon
institute proceedings against | ||||||
23 | the State bank or out-of-state bank, the
board of directors
| ||||||
24 | thereof, or the trustees under such plan as the nature of | ||||||
25 | the case may require.
| ||||||
26 | (6) The Commissioner shall have the power:
|
| |||||||
| |||||||
1 | (a) To promulgate reasonable rules for the purpose | ||||||
2 | of
administering the provisions of this Act.
| ||||||
3 | (a-5) To impose conditions on any approval issued | ||||||
4 | by the Commissioner
if he determines that the | ||||||
5 | conditions are necessary or appropriate. These
| ||||||
6 | conditions shall be imposed in writing and shall | ||||||
7 | continue
in effect for the period prescribed by the | ||||||
8 | Commissioner.
| ||||||
9 | (b) To issue orders
against any person, if the | ||||||
10 | Commissioner has
reasonable cause to believe that an | ||||||
11 | unsafe or unsound banking practice
has occurred, is | ||||||
12 | occurring, or is about to occur, if any person has | ||||||
13 | violated,
is violating, or is about to violate any law, | ||||||
14 | rule, or written
agreement with the Commissioner, or
| ||||||
15 | for the purpose of administering the provisions of
this | ||||||
16 | Act and any rule promulgated in accordance with this | ||||||
17 | Act.
| ||||||
18 | (b-1) To enter into agreements with a bank | ||||||
19 | establishing a program to
correct the condition of the | ||||||
20 | bank or its practices.
| ||||||
21 | (c) To appoint hearing officers to execute any of | ||||||
22 | the powers granted to
the Commissioner under this | ||||||
23 | Section for the purpose of administering this
Act and | ||||||
24 | any rule promulgated in accordance with this Act
and | ||||||
25 | otherwise to authorize, in writing, an officer or | ||||||
26 | employee of the Office
of
Banks and Real Estate to |
| |||||||
| |||||||
1 | exercise his powers under this Act.
| ||||||
2 | (d) To subpoena witnesses, to compel their | ||||||
3 | attendance, to administer
an oath, to examine any | ||||||
4 | person under oath, and to require the production of
any | ||||||
5 | relevant books, papers, accounts, and documents in the | ||||||
6 | course of and
pursuant to any investigation being | ||||||
7 | conducted, or any action being taken,
by the | ||||||
8 | Commissioner in respect of any matter relating to the | ||||||
9 | duties imposed
upon, or the powers vested in, the | ||||||
10 | Commissioner under the provisions of
this Act or any | ||||||
11 | rule promulgated in accordance with this Act.
| ||||||
12 | (e) To conduct hearings.
| ||||||
13 | (7) Whenever, in the opinion of the Secretary, any | ||||||
14 | director,
officer, employee, or agent of a State bank
or | ||||||
15 | any subsidiary or bank holding company of the bank
or, | ||||||
16 | after May 31, 1997, of any
branch of an out-of-state bank
| ||||||
17 | or any subsidiary or bank holding company of the bank
shall | ||||||
18 | have violated any law,
rule, or order relating to that bank
| ||||||
19 | or any subsidiary or bank holding company of the bank, | ||||||
20 | shall have
obstructed or impeded any examination or | ||||||
21 | investigation by the Secretary, shall have engaged in an | ||||||
22 | unsafe or
unsound practice in conducting the business of | ||||||
23 | that bank
or any subsidiary or bank holding company of the | ||||||
24 | bank,
or shall have
violated any law or engaged or | ||||||
25 | participated in any unsafe or unsound practice
in | ||||||
26 | connection with any financial institution or other |
| |||||||
| |||||||
1 | business entity such that
the character and fitness of the | ||||||
2 | director, officer, employee, or agent does not
assure | ||||||
3 | reasonable promise of safe and sound operation of the State | ||||||
4 | bank, the
Secretary
may issue an order of removal.
If, in | ||||||
5 | the opinion of the Secretary, any former director, officer,
| ||||||
6 | employee,
or agent of a State bank
or any subsidiary or | ||||||
7 | bank holding company of the bank, prior to the
termination | ||||||
8 | of his or her service with
that bank
or any subsidiary or | ||||||
9 | bank holding company of the bank, violated any law,
rule, | ||||||
10 | or order relating to that
State bank
or any subsidiary or | ||||||
11 | bank holding company of the bank, obstructed or impeded
any | ||||||
12 | examination or investigation by the Secretary, engaged in | ||||||
13 | an unsafe or unsound practice in conducting the
business of | ||||||
14 | that bank
or any subsidiary or bank holding company of the | ||||||
15 | bank,
or violated any law or engaged or participated in any
| ||||||
16 | unsafe or unsound practice in connection with any financial | ||||||
17 | institution or
other business entity such that the | ||||||
18 | character and fitness of the director,
officer, employee, | ||||||
19 | or agent would not have assured reasonable promise of safe
| ||||||
20 | and sound operation of the State bank, the Secretary may | ||||||
21 | issue an order
prohibiting that person from
further
service | ||||||
22 | with a bank
or any subsidiary or bank holding company of | ||||||
23 | the bank
as a director, officer, employee, or agent. An | ||||||
24 | order
issued pursuant to this subsection shall be served | ||||||
25 | upon the
director,
officer, employee, or agent. A copy of | ||||||
26 | the order shall be sent to each
director of the bank |
| |||||||
| |||||||
1 | affected by registered mail. A copy of
the order shall also | ||||||
2 | be served upon the bank of which he is a director,
officer, | ||||||
3 | employee, or agent, whereupon he shall cease to be a | ||||||
4 | director,
officer, employee, or agent of that bank. The | ||||||
5 | Secretary may
institute a civil action against the | ||||||
6 | director, officer, or agent of the
State bank or, after May | ||||||
7 | 31, 1997, of the branch of the out-of-state bank
against | ||||||
8 | whom any order provided for by this subsection (7) of
this | ||||||
9 | Section 48 has been issued, and against the State bank or, | ||||||
10 | after May 31,
1997, out-of-state bank, to enforce
| ||||||
11 | compliance with or to enjoin any violation of the terms of | ||||||
12 | the order.
Any person who has been the subject of an order | ||||||
13 | of removal
or
an order of prohibition issued by the | ||||||
14 | Secretary under
this subsection or Section 5-6 of the | ||||||
15 | Corporate Fiduciary Act may not
thereafter serve as | ||||||
16 | director, officer, employee, or agent of any State bank
or | ||||||
17 | of any branch of any out-of-state bank,
or of any corporate | ||||||
18 | fiduciary, as defined in Section 1-5.05 of the
Corporate
| ||||||
19 | Fiduciary Act, or of any other entity that is subject to | ||||||
20 | licensure or
regulation by the Division of Banking unless
| ||||||
21 | the Secretary has granted prior approval in writing.
| ||||||
22 | For purposes of this paragraph (7), "bank holding | ||||||
23 | company" has the
meaning prescribed in Section 2 of the | ||||||
24 | Illinois Bank Holding Company Act of
1957.
| ||||||
25 | (8) The Commissioner may impose civil penalties of up | ||||||
26 | to $100,000 against
any person for each violation of any |
| |||||||
| |||||||
1 | provision of this Act, any rule
promulgated in accordance | ||||||
2 | with this Act, any order of the Commissioner, or
any other | ||||||
3 | action which in the Commissioner's discretion is an unsafe | ||||||
4 | or
unsound banking practice.
| ||||||
5 | (9) The Commissioner may impose civil penalties of up | ||||||
6 | to $100
against any person for the first failure to comply | ||||||
7 | with reporting
requirements set forth in the report of | ||||||
8 | examination of the bank and up to
$200 for the second and | ||||||
9 | subsequent failures to comply with those reporting
| ||||||
10 | requirements.
| ||||||
11 | (10) All final administrative decisions of the | ||||||
12 | Commissioner hereunder
shall be subject to judicial review | ||||||
13 | pursuant to the provisions of the
Administrative Review | ||||||
14 | Law. For matters involving administrative review,
venue | ||||||
15 | shall be in either Sangamon County or Cook County.
| ||||||
16 | (11) The endowment fund for the Illinois Bank | ||||||
17 | Examiners' Education
Foundation shall be administered as | ||||||
18 | follows:
| ||||||
19 | (a) (Blank).
| ||||||
20 | (b) The Foundation is empowered to receive | ||||||
21 | voluntary contributions,
gifts, grants, bequests, and | ||||||
22 | donations on behalf of the Illinois Bank
Examiners' | ||||||
23 | Education Foundation from national banks and other | ||||||
24 | persons for
the purpose of funding the endowment of the | ||||||
25 | Illinois Bank Examiners'
Education Foundation.
| ||||||
26 | (c) The aggregate of all special educational fees |
| |||||||
| |||||||
1 | collected by the
Secretary and property received by the | ||||||
2 | Secretary on behalf of the
Illinois Bank Examiners' | ||||||
3 | Education Foundation under this subsection
(11) on or | ||||||
4 | after June 30, 1986, shall be either (i) promptly paid | ||||||
5 | after
receipt of the same, accompanied by a detailed | ||||||
6 | statement thereof, into the
State Treasury and shall be | ||||||
7 | set apart in a special fund to be known as "The
| ||||||
8 | Illinois Bank Examiners' Education Fund" to be | ||||||
9 | invested by either the
Treasurer of the State of | ||||||
10 | Illinois in the Public Treasurers' Investment
Pool or | ||||||
11 | in any other investment he is authorized to make or by | ||||||
12 | the Illinois
State Board of Investment as the State | ||||||
13 | Banking Board of Illinois may direct or (ii) deposited | ||||||
14 | into an account
maintained in a commercial bank or | ||||||
15 | corporate fiduciary in the name of the
Illinois Bank | ||||||
16 | Examiners' Education Foundation pursuant to the order | ||||||
17 | and
direction of the Board of Trustees of the Illinois | ||||||
18 | Bank Examiners' Education
Foundation.
| ||||||
19 | (12) (Blank).
| ||||||
20 | (13) The Secretary may borrow funds from the General | ||||||
21 | Revenue Fund on behalf of the Bank and Trust Company Fund | ||||||
22 | if the Director of Banking certifies to the Governor that | ||||||
23 | there is an economic emergency affecting banking that | ||||||
24 | requires a borrowing to provide additional funds to the | ||||||
25 | Bank and Trust Company Fund. The borrowed funds shall be | ||||||
26 | paid back within 3 years and shall not exceed the total |
| |||||||
| |||||||
1 | funding appropriated to the Agency in the previous year. | ||||||
2 | (14) In addition to the fees authorized in this Act, | ||||||
3 | the Secretary may assess reasonable receivership fees | ||||||
4 | against any State bank that does not maintain insurance | ||||||
5 | with the Federal Deposit Insurance Corporation. All fees | ||||||
6 | collected under this subsection (14) shall be paid into the | ||||||
7 | Non-insured Institutions Receivership account in the Bank | ||||||
8 | and Trust Company Fund, as established by the Secretary. | ||||||
9 | The fees assessed under this subsection (14) shall provide | ||||||
10 | for the expenses that arise from the administration of the | ||||||
11 | receivership of any such institution required to pay into | ||||||
12 | the Non-insured Institutions Receivership account, whether | ||||||
13 | pursuant to this Act, the Corporate Fiduciary Act, the | ||||||
14 | Foreign Banking Office Act, or any other Act that requires | ||||||
15 | payments into the Non-insured Institutions Receivership | ||||||
16 | account. The Secretary may establish by rule a reasonable | ||||||
17 | manner of assessing fees under this subsection (14). | ||||||
18 | (Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16 .)
| ||||||
19 | (205 ILCS 5/48.1) (from Ch. 17, par. 360)
| ||||||
20 | Sec. 48.1. Customer financial records; confidentiality.
| ||||||
21 | (a) For the purpose of this Section, the term "financial | ||||||
22 | records" means any
original, any copy, or any summary of:
| ||||||
23 | (1) a document granting signature
authority over a | ||||||
24 | deposit or account;
| ||||||
25 | (2) a statement, ledger card or other
record on any |
| |||||||
| |||||||
1 | deposit or account, which shows each transaction in or with
| ||||||
2 | respect to that account;
| ||||||
3 | (3) a check, draft or money order drawn on a bank
or | ||||||
4 | issued and payable by a bank; or
| ||||||
5 | (4) any other item containing
information pertaining | ||||||
6 | to any relationship established in the ordinary
course of a | ||||||
7 | bank's business between a bank and its customer, including
| ||||||
8 | financial statements or other financial information | ||||||
9 | provided by the customer.
| ||||||
10 | (b) This Section does not prohibit:
| ||||||
11 | (1) The preparation, examination, handling or | ||||||
12 | maintenance of any
financial records by any officer, | ||||||
13 | employee or agent of a bank
having custody of the records, | ||||||
14 | or the examination of the records by a
certified public | ||||||
15 | accountant engaged by the bank to perform an independent
| ||||||
16 | audit.
| ||||||
17 | (2) The examination of any financial records by, or the | ||||||
18 | furnishing of
financial records by a bank to, any officer, | ||||||
19 | employee or agent of (i) the
Commissioner of Banks and Real | ||||||
20 | Estate, (ii) after May
31, 1997, a state regulatory | ||||||
21 | authority authorized to examine a branch of a
State bank | ||||||
22 | located in another state, (iii) the Comptroller of the | ||||||
23 | Currency,
(iv) the Federal Reserve Board, or (v) the | ||||||
24 | Federal Deposit Insurance
Corporation for use solely in the | ||||||
25 | exercise of his duties as an officer,
employee, or agent.
| ||||||
26 | (3) The publication of data furnished from financial |
| |||||||
| |||||||
1 | records
relating to customers where the data cannot be | ||||||
2 | identified to any
particular customer or account.
| ||||||
3 | (4) The making of reports or returns required under | ||||||
4 | Chapter 61 of
the Internal Revenue Code of 1986.
| ||||||
5 | (5) Furnishing information concerning the dishonor of | ||||||
6 | any negotiable
instrument permitted to be disclosed under | ||||||
7 | the Uniform Commercial Code.
| ||||||
8 | (6) The exchange in the regular course of business of | ||||||
9 | (i) credit
information
between a bank and other banks or | ||||||
10 | financial institutions or commercial
enterprises, directly | ||||||
11 | or through a consumer reporting agency or (ii)
financial | ||||||
12 | records or information derived from financial records | ||||||
13 | between a bank
and other banks or financial institutions or | ||||||
14 | commercial enterprises for the
purpose of conducting due | ||||||
15 | diligence pursuant to a purchase or sale involving
the bank | ||||||
16 | or assets or liabilities of the bank.
| ||||||
17 | (7) The furnishing of information to the appropriate | ||||||
18 | law enforcement
authorities where the bank reasonably | ||||||
19 | believes it has been the victim of a
crime.
| ||||||
20 | (8) The furnishing of information under the Revised | ||||||
21 | Uniform Disposition of
Unclaimed Property Act.
| ||||||
22 | (9) The furnishing of information under the Illinois | ||||||
23 | Income Tax Act and
the Illinois Estate and | ||||||
24 | Generation-Skipping Transfer Tax Act.
| ||||||
25 | (10) The furnishing of information under the federal | ||||||
26 | Currency
and Foreign Transactions Reporting Act Title 31, |
| |||||||
| |||||||
1 | United States
Code, Section 1051 et seq.
| ||||||
2 | (11) The furnishing of information under any other | ||||||
3 | statute that
by its terms or by regulations promulgated | ||||||
4 | thereunder requires the disclosure
of financial records | ||||||
5 | other than by subpoena, summons, warrant, or court order.
| ||||||
6 | (12) The furnishing of information about the existence | ||||||
7 | of an account
of a person to a judgment creditor of that | ||||||
8 | person who has made a written
request for that information.
| ||||||
9 | (13) The exchange in the regular course of business of | ||||||
10 | information
between commonly owned banks in connection | ||||||
11 | with a transaction authorized
under paragraph (23) of
| ||||||
12 | Section 5 and conducted at an affiliate facility.
| ||||||
13 | (14) The furnishing of information in accordance with | ||||||
14 | the federal
Personal Responsibility and Work Opportunity | ||||||
15 | Reconciliation Act of 1996.
Any bank governed by this Act | ||||||
16 | shall enter into an agreement for data
exchanges with a | ||||||
17 | State agency provided the State agency
pays to the bank a | ||||||
18 | reasonable fee not to exceed its
actual cost incurred. A | ||||||
19 | bank providing
information in accordance with this item | ||||||
20 | shall not be liable to any account
holder or other person | ||||||
21 | for any disclosure of information to a State agency, for
| ||||||
22 | encumbering or surrendering any assets held by the bank in | ||||||
23 | response to a lien
or order to withhold and deliver issued | ||||||
24 | by a State agency, or for any other
action taken pursuant | ||||||
25 | to this item, including individual or mechanical errors,
| ||||||
26 | provided the action does not constitute gross negligence or |
| |||||||
| |||||||
1 | willful misconduct.
A bank shall have no obligation to | ||||||
2 | hold, encumber, or surrender assets until
it has been | ||||||
3 | served with a subpoena, summons, warrant, court or | ||||||
4 | administrative
order,
lien, or levy.
| ||||||
5 | (15) The exchange in the regular course of business of | ||||||
6 | information
between
a bank and any commonly owned affiliate | ||||||
7 | of the bank, subject to the provisions
of the Financial | ||||||
8 | Institutions Insurance Sales Law.
| ||||||
9 | (16) The furnishing of information to law enforcement | ||||||
10 | authorities, the
Illinois Department on
Aging and its | ||||||
11 | regional administrative and provider agencies, the | ||||||
12 | Department of
Human Services Office
of Inspector General, | ||||||
13 | or public guardians: (i) upon subpoena by the investigatory | ||||||
14 | entity or the guardian, or (ii) if there is suspicion by | ||||||
15 | the bank that a customer
who is an elderly person or person | ||||||
16 | with a disability has been or may become the victim of | ||||||
17 | financial exploitation.
For the purposes of this
item (16), | ||||||
18 | the term: (i) "elderly person" means a person who is 60 or | ||||||
19 | more
years of age, (ii) "disabled
person" means a person | ||||||
20 | who has or reasonably appears to the bank to have a
| ||||||
21 | physical or mental
disability that impairs his or her | ||||||
22 | ability to seek or obtain protection from or
prevent | ||||||
23 | financial
exploitation, and (iii) "financial exploitation" | ||||||
24 | means tortious or illegal use
of the assets or resources of
| ||||||
25 | an elderly or disabled person, and includes, without | ||||||
26 | limitation,
misappropriation of the elderly or
disabled |
| |||||||
| |||||||
1 | person's assets or resources by undue influence, breach of | ||||||
2 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
3 | extortion, or the use of assets or resources in any manner
| ||||||
4 | contrary to law. A bank or
person furnishing information | ||||||
5 | pursuant to this item (16) shall be entitled to
the same | ||||||
6 | rights and
protections as a person furnishing information | ||||||
7 | under the Adult Protective Services Act and the Illinois
| ||||||
8 | Domestic Violence Act of 1986.
| ||||||
9 | (17) The disclosure of financial records or | ||||||
10 | information as necessary to
effect, administer, or enforce | ||||||
11 | a transaction requested or authorized by the
customer, or | ||||||
12 | in connection with:
| ||||||
13 | (A) servicing or processing a financial product or | ||||||
14 | service requested or
authorized by the customer;
| ||||||
15 | (B) maintaining or servicing a customer's account | ||||||
16 | with the bank; or
| ||||||
17 | (C) a proposed or actual securitization or | ||||||
18 | secondary market sale
(including sales of servicing | ||||||
19 | rights) related to a
transaction of a customer.
| ||||||
20 | Nothing in this item (17), however, authorizes the sale | ||||||
21 | of the financial
records or information of a customer | ||||||
22 | without the consent of the customer.
| ||||||
23 | (18) The disclosure of financial records or | ||||||
24 | information as necessary to
protect against actual or | ||||||
25 | potential fraud, unauthorized transactions, claims,
or | ||||||
26 | other liability.
|
| |||||||
| |||||||
1 | (19)(a) The disclosure of financial records or | ||||||
2 | information
related to a private label credit program | ||||||
3 | between a financial
institution and a private label party | ||||||
4 | in connection with that
private label credit program. Such | ||||||
5 | information is limited to
outstanding balance, available | ||||||
6 | credit, payment and performance
and account history, | ||||||
7 | product references, purchase information,
and information
| ||||||
8 | related to the identity of the customer.
| ||||||
9 | (b)(1) For purposes of this paragraph (19) of | ||||||
10 | subsection
(b) of Section 48.1, a "private label credit | ||||||
11 | program" means a
credit program involving a financial | ||||||
12 | institution and a private label
party that is used by a | ||||||
13 | customer of the financial institution and the
private label | ||||||
14 | party primarily for payment for goods or services
sold, | ||||||
15 | manufactured, or distributed by a private label party.
| ||||||
16 | (2) For purposes of this paragraph (19) of subsection | ||||||
17 | (b)
of Section 48.1, a "private label party" means, with | ||||||
18 | respect to a
private label credit program, any of the | ||||||
19 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
20 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
21 | agent, or service provider.
| ||||||
22 | (c) Except as otherwise provided by this Act, a bank may | ||||||
23 | not disclose to
any person, except to the customer or his
duly | ||||||
24 | authorized agent, any financial records or financial | ||||||
25 | information
obtained from financial records relating to that | ||||||
26 | customer of
that bank unless:
|
| |||||||
| |||||||
1 | (1) the customer has authorized disclosure to the | ||||||
2 | person;
| ||||||
3 | (2) the financial records are disclosed in response to | ||||||
4 | a lawful
subpoena, summons, warrant, citation to discover | ||||||
5 | assets, or court order which meets the requirements
of | ||||||
6 | subsection (d) of this Section; or
| ||||||
7 | (3) the bank is attempting to collect an obligation | ||||||
8 | owed to the bank
and the bank complies with the provisions | ||||||
9 | of Section 2I of the Consumer
Fraud and Deceptive Business | ||||||
10 | Practices Act.
| ||||||
11 | (d) A bank shall disclose financial records under paragraph | ||||||
12 | (2) of
subsection (c) of this Section under a lawful subpoena, | ||||||
13 | summons, warrant, citation to discover assets, or
court order | ||||||
14 | only after the bank mails a copy of the subpoena, summons, | ||||||
15 | warrant, citation to discover assets,
or court order to the | ||||||
16 | person establishing the relationship with the bank, if
living, | ||||||
17 | and, otherwise his personal representative, if known, at his | ||||||
18 | last known
address by first class mail, postage prepaid, unless | ||||||
19 | the bank is specifically
prohibited from notifying the person | ||||||
20 | by order of court or by applicable State
or federal law. A bank | ||||||
21 | shall not mail a copy of a subpoena to any person
pursuant to | ||||||
22 | this subsection if the subpoena was issued by a grand jury | ||||||
23 | under
the Statewide Grand Jury Act.
| ||||||
24 | (e) Any officer or employee of a bank who knowingly and
| ||||||
25 | willfully furnishes financial records in violation of this | ||||||
26 | Section is
guilty of a business offense and, upon conviction, |
| |||||||
| |||||||
1 | shall be fined not
more than $1,000.
| ||||||
2 | (f) Any person who knowingly and willfully induces or | ||||||
3 | attempts to
induce any officer or employee of a bank to | ||||||
4 | disclose financial
records in violation of this Section is | ||||||
5 | guilty of a business offense
and, upon conviction, shall be | ||||||
6 | fined not more than $1,000.
| ||||||
7 | (g) A bank shall be reimbursed for costs that are | ||||||
8 | reasonably necessary
and that have been directly incurred in | ||||||
9 | searching for, reproducing, or
transporting books, papers, | ||||||
10 | records, or other data of a customer required or
requested to | ||||||
11 | be produced pursuant to a lawful subpoena, summons, warrant, | ||||||
12 | citation to discover assets, or
court order. The Commissioner | ||||||
13 | shall determine the rates and conditions
under which payment | ||||||
14 | may be made.
| ||||||
15 | (Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15 .)
| ||||||
16 | (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
| ||||||
17 | Sec. 48.3.
Disclosure of reports of examinations
and | ||||||
18 | confidential
supervisory information;
limitations.
| ||||||
19 | (a) Any report of examination, visitation, or | ||||||
20 | investigation prepared by
the Commissioner under this Act, the | ||||||
21 | Electronic Fund Transfer
Act, the Corporate Fiduciary Act, the
| ||||||
22 | Illinois Bank Holding Company Act of 1957, and the Foreign
| ||||||
23 | Banking Office Act, any report of examination, visitation, or
| ||||||
24 | investigation prepared by the state regulatory
authority of | ||||||
25 | another state that examines a branch of an Illinois State bank |
| |||||||
| |||||||
1 | in
that state, any document or record prepared or obtained in
| ||||||
2 | connection with or relating to any
examination, visitation, or | ||||||
3 | investigation, and any record prepared or
obtained by the | ||||||
4 | Commissioner to the extent that the record summarizes or
| ||||||
5 | contains information derived from any report, document, or | ||||||
6 | record described
in this subsection shall be deemed | ||||||
7 | "confidential supervisory information".
Confidential
| ||||||
8 | supervisory information shall not include any information or | ||||||
9 | record
routinely prepared by a bank or other financial | ||||||
10 | institution and maintained in
the ordinary course of business | ||||||
11 | or any information or record that is required
to be made | ||||||
12 | publicly available pursuant to State or federal law or rule.
| ||||||
13 | Confidential supervisory information
shall be the property of | ||||||
14 | the Commissioner and shall only be
disclosed under the | ||||||
15 | circumstances and for the purposes set forth in this
Section.
| ||||||
16 | The Commissioner may
disclose
confidential supervisory | ||||||
17 | information only under the following circumstances:
| ||||||
18 | (1) The Commissioner may furnish confidential | ||||||
19 | supervisory information
to the Board of Governors of the
| ||||||
20 | Federal Reserve System, the federal reserve bank of the | ||||||
21 | federal reserve
district in which the State bank is located | ||||||
22 | or in which the parent or other
affiliate of the State bank | ||||||
23 | is located, any official or examiner
thereof duly | ||||||
24 | accredited for the purpose, or any other state regulator, | ||||||
25 | federal
regulator, or in the case of a foreign bank | ||||||
26 | possessing a certificate of
authority pursuant to the |
| |||||||
| |||||||
1 | Foreign Banking Office Act or a license pursuant to
the | ||||||
2 | Foreign Bank Representative Office Act, the bank regulator | ||||||
3 | in the country
where the foreign bank is chartered,
that | ||||||
4 | the Commissioner determines to have an appropriate
| ||||||
5 | regulatory interest. Nothing contained in this Act shall be | ||||||
6 | construed to
limit the obligation of any member State bank | ||||||
7 | to comply with the
requirements relative to examinations | ||||||
8 | and reports of the Federal Reserve
Act and of the Board of | ||||||
9 | Governors of the Federal Reserve System or the
federal | ||||||
10 | reserve bank of the federal reserve district in which the | ||||||
11 | bank is
located, nor to limit in any way the powers of the | ||||||
12 | Commissioner with
reference to examinations and reports.
| ||||||
13 | (2) The Commissioner may furnish confidential | ||||||
14 | supervisory information
to the United States, any agency
| ||||||
15 | thereof that has insured a bank's deposits in whole or in | ||||||
16 | part, or any official
or examiner thereof duly accredited | ||||||
17 | for the purpose. Nothing contained in this Act shall be
| ||||||
18 | construed to limit the obligation relative to examinations | ||||||
19 | and reports of any
State bank, deposits in which are to any | ||||||
20 | extent insured by the United States,
any agency thereof, | ||||||
21 | nor to limit in any way the powers of the Commissioner with
| ||||||
22 | reference to examination and reports of such bank.
| ||||||
23 | (3) The Commissioner may furnish
confidential | ||||||
24 | supervisory
information
to the appropriate law
enforcement | ||||||
25 | authorities when the Commissioner reasonably believes a
| ||||||
26 | bank, which
the Commissioner has
caused to be examined, has |
| |||||||
| |||||||
1 | been a victim of a crime.
| ||||||
2 | (4) The Commissioner may furnish confidential | ||||||
3 | supervisory information
relating to a bank or other
| ||||||
4 | financial institution, which the Commissioner has caused | ||||||
5 | to be
examined, to be sent to the
administrator of the | ||||||
6 | Revised Uniform Disposition of Unclaimed Property Act.
| ||||||
7 | (5) The Commissioner may furnish
confidential | ||||||
8 | supervisory
information relating to a bank or other
| ||||||
9 | financial institution, which
the Commissioner has caused | ||||||
10 | to be examined, relating to its
performance of obligations | ||||||
11 | under the Illinois Income Tax Act and the
Illinois Estate | ||||||
12 | and Generation-Skipping Transfer Tax Act to the Illinois
| ||||||
13 | Department of Revenue.
| ||||||
14 | (6) The Commissioner may furnish
confidential | ||||||
15 | supervisory
information relating to a bank or other
| ||||||
16 | financial institution, which
the Commissioner has caused | ||||||
17 | to be examined, under the
federal Currency and Foreign | ||||||
18 | Transactions Reporting Act,
Title 31, United States Code, | ||||||
19 | Section 1051 et seq.
| ||||||
20 | (6.5) The Commissioner may furnish
confidential | ||||||
21 | supervisory
information to any other agency or entity that | ||||||
22 | the Commissioner determines
to
have a legitimate | ||||||
23 | regulatory interest.
| ||||||
24 | (7) The Commissioner may furnish
confidential | ||||||
25 | supervisory
information under any other
statute that by its | ||||||
26 | terms or by regulations promulgated thereunder
requires |
| |||||||
| |||||||
1 | the disclosure of financial records other than by subpoena,
| ||||||
2 | summons, warrant, or court order.
| ||||||
3 | (8) At the request of the affected bank or other | ||||||
4 | financial institution,
the Commissioner may furnish
| ||||||
5 | confidential supervisory
information relating to a bank or | ||||||
6 | other financial
institution, which
the Commissioner has | ||||||
7 | caused to be examined, in connection with the
obtaining of | ||||||
8 | insurance coverage or the pursuit of an insurance claim for | ||||||
9 | or on
behalf of the bank or other financial institution; | ||||||
10 | provided that, when
possible, the Commissioner shall | ||||||
11 | disclose only relevant information while
maintaining the | ||||||
12 | confidentiality of financial records not relevant to such
| ||||||
13 | insurance coverage or claim and, when appropriate, may | ||||||
14 | delete identifying data
relating to any person or | ||||||
15 | individual.
| ||||||
16 | (9) The Commissioner may furnish a copy of a report of | ||||||
17 | any examination
performed by the Commissioner of the | ||||||
18 | condition and affairs of any
electronic data processing | ||||||
19 | entity to the banks serviced by the electronic
data | ||||||
20 | processing entity.
| ||||||
21 | (10) In addition to the foregoing circumstances, the | ||||||
22 | Commissioner may,
but is not required to, furnish
| ||||||
23 | confidential supervisory information under the same | ||||||
24 | circumstances authorized for
the bank or financial
| ||||||
25 | institution pursuant to subsection
(b) of this Section, | ||||||
26 | except that the Commissioner shall provide
confidential |
| |||||||
| |||||||
1 | supervisory information under circumstances described in | ||||||
2 | paragraph (3) of
subsection (b) of this Section only upon | ||||||
3 | the request of the bank or other
financial institution.
| ||||||
4 | (b) A bank or other financial institution or its officers, | ||||||
5 | agents, and
employees may disclose
confidential supervisory | ||||||
6 | information only under the
following circumstances:
| ||||||
7 | (1) to the board of directors of the bank or other | ||||||
8 | financial institution,
as well as the president, | ||||||
9 | vice-president, cashier, and other officers of the
bank or | ||||||
10 | other financial institution to whom the board of directors | ||||||
11 | may delegate
duties with respect to compliance with | ||||||
12 | recommendations for action, and to the board of directors | ||||||
13 | of a bank holding company that owns at
least 80% of the | ||||||
14 | outstanding stock of the bank or other financial | ||||||
15 | institution;
| ||||||
16 | (2) to attorneys for the bank or other financial | ||||||
17 | institution and to a
certified public accountant engaged by | ||||||
18 | the State bank or financial
institution to perform an | ||||||
19 | independent audit provided that the attorney or
certified | ||||||
20 | public accountant shall not permit the
confidential | ||||||
21 | supervisory
information to be further disseminated;
| ||||||
22 | (3) to any person who seeks to acquire a controlling | ||||||
23 | interest in, or who
seeks to merge with, the
bank or | ||||||
24 | financial institution, provided that all attorneys, | ||||||
25 | certified public
accountants, officers, agents, or | ||||||
26 | employees of that person shall agree to be
bound to respect |
| |||||||
| |||||||
1 | the confidentiality of the
confidential supervisory
| ||||||
2 | information and to not further disseminate the information | ||||||
3 | therein contained;
| ||||||
4 | (4) (blank); or
| ||||||
5 | (5) to the bank's insurance company in relation to an | ||||||
6 | insurance
claim or
the effort by the bank to procure | ||||||
7 | insurance coverage, provided that, when
possible, the bank | ||||||
8 | shall disclose only information that is relevant to the
| ||||||
9 | insurance claim or that is necessary to procure the | ||||||
10 | insurance coverage, while
maintaining the confidentiality | ||||||
11 | of financial information pertaining to
customers. When | ||||||
12 | appropriate, the bank may delete identifying data relating | ||||||
13 | to
any person.
| ||||||
14 | The disclosure of confidential supervisory information by | ||||||
15 | a bank or other
financial institution pursuant to this | ||||||
16 | subsection (b) and the disclosure of
information to the | ||||||
17 | Commissioner or other regulatory agency in connection with
any | ||||||
18 | examination, visitation, or investigation shall not constitute | ||||||
19 | a waiver of
any legal privilege otherwise available to the bank | ||||||
20 | or other financial
institution with respect to the information.
| ||||||
21 | (c) (1) Notwithstanding any other provision of this Act
or | ||||||
22 | any other law, confidential supervisory information shall be | ||||||
23 | the property of
the Commissioner and shall be privileged from | ||||||
24 | disclosure to any person except
as provided in this Section. No | ||||||
25 | person in possession of confidential
supervisory information | ||||||
26 | may disclose that information for any reason or under
any |
| |||||||
| |||||||
1 | circumstances not specified in this Section without the prior | ||||||
2 | authorization
of the
Commissioner. Any person upon whom a | ||||||
3 | demand for production of confidential
supervisory information | ||||||
4 | is made, whether by subpoena, order, or other judicial
or | ||||||
5 | administrative process, must withhold production of the | ||||||
6 | confidential
supervisory information and must notify the | ||||||
7 | Commissioner of the demand, at
which time the Commissioner is | ||||||
8 | authorized to intervene for the purpose of
enforcing the | ||||||
9 | limitations of this Section or seeking the withdrawal or
| ||||||
10 | termination of the attempt to compel production of the | ||||||
11 | confidential
supervisory information.
| ||||||
12 | (2) Any request for discovery or disclosure of confidential | ||||||
13 | supervisory
information, whether by subpoena, order, or other | ||||||
14 | judicial or administrative
process, shall be made to the | ||||||
15 | Commissioner, and the Commissioner shall
determine within 15 | ||||||
16 | days whether to disclose the information pursuant to
procedures | ||||||
17 | and standards that the Commissioner shall establish by rule. If | ||||||
18 | the
Commissioner determines that such information will not be | ||||||
19 | disclosed, the
Commissioner's decision shall be subject to | ||||||
20 | judicial review under the
provisions of the Administrative | ||||||
21 | Review Law, and venue shall be in either
Sangamon County or | ||||||
22 | Cook County.
| ||||||
23 | (3) Any court order that compels disclosure of confidential | ||||||
24 | supervisory
information may be immediately appealed by the | ||||||
25 | Commissioner, and the order
shall
be automatically stayed | ||||||
26 | pending the outcome of the appeal.
|
| |||||||
| |||||||
1 | (d) If any officer, agent, attorney, or employee of a bank | ||||||
2 | or
financial institution knowingly and willfully furnishes
| ||||||
3 | confidential supervisory information in violation of this | ||||||
4 | Section, the
Commissioner may impose a
civil monetary penalty | ||||||
5 | up to $1,000 for the violation against
the officer, agent, | ||||||
6 | attorney, or employee.
| ||||||
7 | (Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
| ||||||
8 | (205 ILCS 5/65) (from Ch. 17, par. 377)
| ||||||
9 | Sec. 65. Dividends; dissolution. From time to time during a | ||||||
10 | receivership other than a receivership conducted by
the Federal | ||||||
11 | Deposit Insurance Corporation, the Commissioner shall make and
| ||||||
12 | pay from monies of the bank a ratable dividend on all claims as | ||||||
13 | may be
proved to his or her satisfaction or adjudicated by the | ||||||
14 | court. Claims so
proven or adjudicated shall bear interest at | ||||||
15 | the rate of 3% per
annum from the date of the appointment of | ||||||
16 | the receiver to the date of
payment, but all dividends on a | ||||||
17 | claim shall be applied first to principal.
In computing the | ||||||
18 | amount of any dividend to be paid, if the Commissioner
deems it | ||||||
19 | desirable in the interests of economy of administration and
to | ||||||
20 | the interest of the bank and its creditors, he or she may pay | ||||||
21 | up to the
amount of $10 of each claim or unpaid portion thereof | ||||||
22 | in full. As the
proceeds of the assets of the bank are | ||||||
23 | collected in the course of
liquidation, the Commissioner shall | ||||||
24 | make and pay further dividends on all
claims previously proven | ||||||
25 | or adjudicated. After one year from the
entry of a judgment of |
| |||||||
| |||||||
1 | dissolution, all unclaimed dividends shall be remitted
to the | ||||||
2 | State Treasurer in accordance with the Revised Uniform | ||||||
3 | Unclaimed
Property Act "Uniform Disposition of Unclaimed
| ||||||
4 | Property Act" , as now or hereafter amended, together with a | ||||||
5 | list of all unpaid
claimants, their last known addresses and | ||||||
6 | the amounts unpaid.
| ||||||
7 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
8 | Section 17-55. The Savings Bank Act is amended by changing | ||||||
9 | Sections 4013, 9012, and 10090 as follows:
| ||||||
10 | (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||||||
11 | Sec. 4013. Access to books and records; communication with | ||||||
12 | members
and shareholders. | ||||||
13 | (a) Every member or shareholder shall have the right to | ||||||
14 | inspect books
and records of the savings bank that pertain to | ||||||
15 | his accounts. Otherwise,
the right of inspection and | ||||||
16 | examination of the books and records shall be
limited as | ||||||
17 | provided in this Act, and no other person shall have access to
| ||||||
18 | the books and records nor shall be entitled to a list of the | ||||||
19 | members or
shareholders.
| ||||||
20 | (b) For the purpose of this Section, the term "financial | ||||||
21 | records" means
any original, any copy, or any summary of (1) a | ||||||
22 | document granting signature
authority over a deposit or | ||||||
23 | account; (2) a statement, ledger card, or other
record on any | ||||||
24 | deposit or account that shows each transaction in or with
|
| |||||||
| |||||||
1 | respect to that account; (3) a check, draft, or money order | ||||||
2 | drawn on a
savings bank or issued and payable by a savings | ||||||
3 | bank; or (4) any other item
containing information pertaining | ||||||
4 | to any relationship established in the
ordinary course of a | ||||||
5 | savings bank's business between a savings bank and
its | ||||||
6 | customer, including financial statements or other financial | ||||||
7 | information
provided by the member or shareholder.
| ||||||
8 | (c) This Section does not prohibit:
| ||||||
9 | (1) The preparation , examination, handling, or | ||||||
10 | maintenance of any
financial records by any officer, | ||||||
11 | employee, or agent of a savings bank
having custody of | ||||||
12 | records or examination of records by a certified public
| ||||||
13 | accountant engaged by the savings bank to perform an | ||||||
14 | independent audit.
| ||||||
15 | (2) The examination of any financial records by, or the | ||||||
16 | furnishing of
financial records by a savings bank to, any | ||||||
17 | officer, employee, or agent of
the Commissioner of Banks | ||||||
18 | and Real Estate or the federal depository
institution | ||||||
19 | regulator for use
solely in
the exercise of his duties as | ||||||
20 | an officer, employee, or agent.
| ||||||
21 | (3) The publication of data furnished from financial | ||||||
22 | records relating
to members or holders of capital where the | ||||||
23 | data cannot be identified to any
particular member, | ||||||
24 | shareholder, or account.
| ||||||
25 | (4) The making of reports or returns required under | ||||||
26 | Chapter 61 of the
Internal Revenue Code of 1986.
|
| |||||||
| |||||||
1 | (5) Furnishing information concerning the dishonor of | ||||||
2 | any negotiable
instrument permitted to be disclosed under | ||||||
3 | the Uniform Commercial Code.
| ||||||
4 | (6) The exchange in the regular course of business of | ||||||
5 | (i) credit
information between a savings bank and other | ||||||
6 | savings banks or financial
institutions or commercial | ||||||
7 | enterprises, directly or through a consumer
reporting | ||||||
8 | agency
or (ii) financial records or information derived | ||||||
9 | from financial records
between a savings bank and other | ||||||
10 | savings banks or financial institutions or
commercial | ||||||
11 | enterprises for the purpose of conducting due diligence | ||||||
12 | pursuant to
a purchase or sale involving the savings bank | ||||||
13 | or assets or liabilities of the
savings bank.
| ||||||
14 | (7) The furnishing of information to the appropriate | ||||||
15 | law enforcement
authorities where the savings bank | ||||||
16 | reasonably believes it has been the
victim of a crime.
| ||||||
17 | (8) The furnishing of information pursuant to the | ||||||
18 | Revised Uniform Disposition
of Unclaimed Property Act.
| ||||||
19 | (9) The furnishing of information pursuant to the | ||||||
20 | Illinois Income Tax
Act
and the Illinois Estate and | ||||||
21 | Generation-Skipping Transfer Tax Act.
| ||||||
22 | (10) The furnishing of information pursuant to the | ||||||
23 | federal " Currency
and Foreign Transactions Reporting Act " , | ||||||
24 | (Title 31, United States Code,
Section 1051 et seq.).
| ||||||
25 | (11) The furnishing of information pursuant to any | ||||||
26 | other statute which
by its terms or by regulations |
| |||||||
| |||||||
1 | promulgated thereunder requires the
disclosure of | ||||||
2 | financial records other than by subpoena, summons, | ||||||
3 | warrant, or
court order.
| ||||||
4 | (12) The furnishing of information in accordance with | ||||||
5 | the federal
Personal Responsibility and Work Opportunity | ||||||
6 | Reconciliation Act of 1996.
Any savings bank governed by | ||||||
7 | this Act shall enter into an agreement for data
exchanges | ||||||
8 | with a State agency provided the State agency
pays to the | ||||||
9 | savings bank a reasonable fee not to exceed its
actual cost | ||||||
10 | incurred. A savings bank
providing
information in | ||||||
11 | accordance with this item shall not be liable to any | ||||||
12 | account
holder or other person for any disclosure of | ||||||
13 | information to a State agency, for
encumbering or | ||||||
14 | surrendering any assets held by the savings bank in | ||||||
15 | response to
a lien
or order to withhold and deliver issued | ||||||
16 | by a State agency, or for any other
action taken pursuant | ||||||
17 | to this item, including individual or mechanical errors,
| ||||||
18 | provided the action does not constitute gross negligence or | ||||||
19 | willful misconduct.
A savings bank shall have no obligation | ||||||
20 | to hold, encumber, or surrender
assets until
it has been | ||||||
21 | served with a subpoena, summons, warrant, court or | ||||||
22 | administrative
order,
lien, or levy.
| ||||||
23 | (13) The furnishing of information to law enforcement | ||||||
24 | authorities, the
Illinois Department on
Aging and its | ||||||
25 | regional administrative and provider agencies, the | ||||||
26 | Department of
Human Services Office
of Inspector General, |
| |||||||
| |||||||
1 | or public guardians: (i) upon subpoena by the investigatory | ||||||
2 | entity or the guardian, or (ii) if there is suspicion by | ||||||
3 | the savings bank that a
customer who is an elderly
person | ||||||
4 | or person with a disability has been or may become the | ||||||
5 | victim of financial exploitation.
For the purposes of this
| ||||||
6 | item (13), the term: (i) "elderly person" means a person | ||||||
7 | who is 60 or more
years of age, (ii) "person with a | ||||||
8 | disability" means a person who has or reasonably appears to | ||||||
9 | the savings bank to
have a physical or mental
disability | ||||||
10 | that impairs his or her ability to seek or obtain | ||||||
11 | protection from or
prevent financial
exploitation, and | ||||||
12 | (iii) "financial exploitation" means tortious or illegal | ||||||
13 | use
of the assets or resources of
an elderly person or | ||||||
14 | person with a disability, and includes, without | ||||||
15 | limitation,
misappropriation of the assets or resources of | ||||||
16 | the elderly person or person with a disability by undue | ||||||
17 | influence, breach of fiduciary
relationship, intimidation,
| ||||||
18 | fraud, deception, extortion, or the use of assets or | ||||||
19 | resources in any manner
contrary to law. A savings
bank or | ||||||
20 | person furnishing information pursuant to this item (13) | ||||||
21 | shall be
entitled to the same rights and
protections as a | ||||||
22 | person furnishing information under the Adult Protective | ||||||
23 | Services Act and the Illinois
Domestic Violence Act of | ||||||
24 | 1986.
| ||||||
25 | (14) The disclosure of financial records or | ||||||
26 | information as necessary to
effect, administer, or enforce |
| |||||||
| |||||||
1 | a transaction requested or authorized by the
member or | ||||||
2 | holder of capital, or in connection with:
| ||||||
3 | (A) servicing or processing a financial product or | ||||||
4 | service requested or
authorized by the member or holder | ||||||
5 | of capital;
| ||||||
6 | (B) maintaining or servicing an account of a member | ||||||
7 | or holder of capital
with the savings bank; or
| ||||||
8 | (C) a proposed or actual securitization or | ||||||
9 | secondary market sale
(including sales of servicing | ||||||
10 | rights) related to a
transaction of a member or holder | ||||||
11 | of capital.
| ||||||
12 | Nothing in this item (14), however, authorizes the sale | ||||||
13 | of the financial
records or information of a member or | ||||||
14 | holder of capital without the consent of
the member or | ||||||
15 | holder of capital.
| ||||||
16 | (15) The exchange in the regular course of business of | ||||||
17 | information between
a
savings bank and any commonly owned | ||||||
18 | affiliate of the savings bank, subject to
the provisions of | ||||||
19 | the Financial Institutions Insurance Sales Law.
| ||||||
20 | (16) The disclosure of financial records or | ||||||
21 | information as necessary to
protect against or prevent | ||||||
22 | actual or potential fraud, unauthorized
transactions, | ||||||
23 | claims, or other liability.
| ||||||
24 | (17)(a) The disclosure of financial records or | ||||||
25 | information
related to a private label credit program | ||||||
26 | between a financial
institution and a private label party |
| |||||||
| |||||||
1 | in connection
with that private label credit program. Such | ||||||
2 | information
is limited to outstanding balance, available | ||||||
3 | credit, payment and
performance and account history, | ||||||
4 | product references, purchase
information,
and information | ||||||
5 | related to the identity of the
customer.
| ||||||
6 | (b)(1) For purposes of this paragraph (17) of | ||||||
7 | subsection
(c) of Section 4013, a "private label credit | ||||||
8 | program" means a
credit program involving a financial | ||||||
9 | institution and a private label
party that is used by a | ||||||
10 | customer of the financial institution and the
private label | ||||||
11 | party primarily for payment for goods or services
sold, | ||||||
12 | manufactured, or distributed by a private label party.
| ||||||
13 | (2) For purposes of this paragraph (17) of subsection | ||||||
14 | (c)
of Section 4013, a "private label party" means, with | ||||||
15 | respect to a
private label credit program, any of the | ||||||
16 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
17 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
18 | agent, or service provider.
| ||||||
19 | (d) A savings bank may not disclose to any person, except | ||||||
20 | to the member
or holder of capital or his duly authorized | ||||||
21 | agent, any financial records
relating to that member or | ||||||
22 | shareholder of the savings bank unless:
| ||||||
23 | (1) the member or shareholder has authorized | ||||||
24 | disclosure to the person; or
| ||||||
25 | (2) the financial records are disclosed in response to | ||||||
26 | a lawful
subpoena, summons, warrant, citation to discover |
| |||||||
| |||||||
1 | assets, or court order that meets the requirements of
| ||||||
2 | subsection (e) of this Section.
| ||||||
3 | (e) A savings bank shall disclose financial records under | ||||||
4 | subsection (d)
of this Section pursuant to a lawful subpoena, | ||||||
5 | summons, warrant, citation to discover assets, or court
order | ||||||
6 | only after the savings bank mails a copy of the subpoena, | ||||||
7 | summons,
warrant, citation to discover assets, or court order | ||||||
8 | to the person establishing the relationship with
the savings | ||||||
9 | bank, if living, and otherwise, his personal representative, if
| ||||||
10 | known, at his last known address by first class mail, postage | ||||||
11 | prepaid,
unless the savings bank is specifically prohibited | ||||||
12 | from notifying the
person by order of court.
| ||||||
13 | (f) Any officer or employee of a savings bank who knowingly | ||||||
14 | and
willfully furnishes financial records in violation of this | ||||||
15 | Section is
guilty of a business offense and, upon conviction, | ||||||
16 | shall be fined not
more than $1,000.
| ||||||
17 | (g) Any person who knowingly and willfully induces or | ||||||
18 | attempts to
induce any officer or employee of a savings bank to | ||||||
19 | disclose financial
records in violation of this Section is | ||||||
20 | guilty of a business offense and,
upon conviction, shall be | ||||||
21 | fined not more than $1,000.
| ||||||
22 | (h) If any member or shareholder desires to communicate | ||||||
23 | with the other
members or shareholders of the savings bank with | ||||||
24 | reference to any question
pending or to be presented at an | ||||||
25 | annual or special meeting, the savings
bank shall give that | ||||||
26 | person, upon request, a statement of the approximate
number of |
| |||||||
| |||||||
1 | members or shareholders entitled to vote at the meeting and an
| ||||||
2 | estimate of the cost of preparing and mailing the | ||||||
3 | communication. The
requesting member shall submit the | ||||||
4 | communication to the Commissioner
who, upon finding it to be | ||||||
5 | appropriate and truthful, shall direct that it
be prepared and | ||||||
6 | mailed to the members upon the requesting member's or
| ||||||
7 | shareholder's payment or adequate provision for payment of the | ||||||
8 | expenses of
preparation and mailing.
| ||||||
9 | (i) A savings bank shall be reimbursed for costs that are | ||||||
10 | necessary and
that have been directly incurred in searching | ||||||
11 | for, reproducing, or
transporting books, papers, records, or | ||||||
12 | other data of a customer required
to be reproduced pursuant to | ||||||
13 | a lawful subpoena, warrant, citation to discover assets, or | ||||||
14 | court order.
| ||||||
15 | (j) Notwithstanding the provisions of this Section, a | ||||||
16 | savings bank may
sell or otherwise make use of lists of | ||||||
17 | customers' names and addresses. All
other information | ||||||
18 | regarding a customer's account is are subject to the
disclosure | ||||||
19 | provisions of this Section. At the request of any customer,
| ||||||
20 | that customer's name and address shall be deleted from any list | ||||||
21 | that is to
be sold or used in any other manner beyond | ||||||
22 | identification of the customer's
accounts.
| ||||||
23 | (Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15; revised | ||||||
24 | 9-14-16.)
| ||||||
25 | (205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
|
| |||||||
| |||||||
1 | Sec. 9012.
Disclosure of reports of examinations and | ||||||
2 | confidential
supervisory information; limitations.
| ||||||
3 | (a) Any report of examination, visitation, or | ||||||
4 | investigation prepared by
the
Commissioner
under this Act, any | ||||||
5 | report of examination, visitation, or investigation
prepared | ||||||
6 | by the state
regulatory authority of another state that | ||||||
7 | examines a branch of an Illinois
State savings bank in
that | ||||||
8 | state, any document or record prepared or obtained in | ||||||
9 | connection with or
relating to any
examination, visitation, or | ||||||
10 | investigation, and any record prepared or obtained
by the
| ||||||
11 | Commissioner to the extent that the record summarizes or | ||||||
12 | contains information
derived from
any report, document, or | ||||||
13 | record described in this subsection shall be deemed
| ||||||
14 | confidential
supervisory information. "Confidential | ||||||
15 | supervisory information" shall not
include any information or
| ||||||
16 | record routinely prepared by a savings bank and maintained in | ||||||
17 | the ordinary
course of business or any
information or record | ||||||
18 | that is required to be made publicly available pursuant
to | ||||||
19 | State or federal law
or rule. Confidential supervisory | ||||||
20 | information shall be the property of the
Commissioner and shall
| ||||||
21 | only be disclosed under the circumstances and for the purposes | ||||||
22 | set forth in
this Section.
| ||||||
23 | The Commissioner may disclose confidential supervisory | ||||||
24 | information only under
the following
circumstances:
| ||||||
25 | (1) The Commissioner may furnish confidential | ||||||
26 | supervisory information to
federal and state
depository |
| |||||||
| |||||||
1 | institution regulators, or any official or examiner | ||||||
2 | thereof duly
accredited for the
purpose. Nothing contained | ||||||
3 | in this Act shall be construed to limit the
obligation of | ||||||
4 | any savings
bank to comply with the requirements relative | ||||||
5 | to examinations and reports nor
to limit in any way
the | ||||||
6 | powers of the Commissioner relative to examinations and | ||||||
7 | reports.
| ||||||
8 | (2) The Commissioner may furnish confidential | ||||||
9 | supervisory information to
the United
States or any agency | ||||||
10 | thereof that to any extent has insured a savings bank's
| ||||||
11 | deposits, or any
official or examiner thereof duly | ||||||
12 | accredited for the purpose. Nothing contained
in this Act | ||||||
13 | shall be
construed to limit the obligation relative to | ||||||
14 | examinations and reports of any
savings bank
in which | ||||||
15 | deposits are to any extent insured by the United States or | ||||||
16 | any agency
thereof
nor to limit in any way
the powers of | ||||||
17 | the Commissioner with reference to examination and reports | ||||||
18 | of the
savings bank.
| ||||||
19 | (3) The Commissioner may furnish confidential | ||||||
20 | supervisory information to
the appropriate
law enforcement | ||||||
21 | authorities when the Commissioner reasonably believes a | ||||||
22 | savings
bank, which the
Commissioner has caused to be | ||||||
23 | examined, has been a victim of a crime.
| ||||||
24 | (4) The Commissioner may furnish confidential | ||||||
25 | supervisory information
related
to a
savings bank, which | ||||||
26 | the Commissioner has caused to be examined, to the
|
| |||||||
| |||||||
1 | administrator of the Revised
Uniform Disposition of | ||||||
2 | Unclaimed Property Act.
| ||||||
3 | (5) The Commissioner may furnish confidential | ||||||
4 | supervisory information
relating to a
savings bank, which | ||||||
5 | the Commissioner has caused to be examined, relating to its
| ||||||
6 | performance
of obligations under the Illinois Income Tax | ||||||
7 | Act and the Illinois Estate and
Generation-Skipping
| ||||||
8 | Transfer Tax Act to the Illinois Department of Revenue.
| ||||||
9 | (6) The Commissioner may furnish confidential | ||||||
10 | supervisory information
relating to a
savings bank, which | ||||||
11 | the Commissioner has caused to be examined, under the
| ||||||
12 | federal Currency
and Foreign Transactions Reporting Act, | ||||||
13 | 31 United States Code, Section
1051 et seq.
| ||||||
14 | (7) The Commissioner may furnish confidential | ||||||
15 | supervisory information to
any other agency
or entity that | ||||||
16 | the Commissioner determines to have a legitimate | ||||||
17 | regulatory
interest.
| ||||||
18 | (8) The Commissioner may furnish confidential | ||||||
19 | supervisory information as
otherwise
permitted or required | ||||||
20 | by this Act and may furnish confidential supervisory
| ||||||
21 | information under any
other statute that by its terms or by | ||||||
22 | regulations promulgated thereunder
requires the disclosure
| ||||||
23 | of financial records other than by subpoena, summons, | ||||||
24 | warrant, or court order.
| ||||||
25 | (9) At the request of the affected savings bank, the | ||||||
26 | Commissioner may
furnish confidential
supervisory |
| |||||||
| |||||||
1 | information relating to the savings bank, which the | ||||||
2 | Commissioner
has caused to be
examined, in connection with | ||||||
3 | the obtaining of insurance coverage or the pursuit
of an | ||||||
4 | insurance
claim for or on behalf of the savings bank; | ||||||
5 | provided that, when possible, the
Commissioner shall
| ||||||
6 | disclose only relevant information while maintaining the | ||||||
7 | confidentiality of
financial records
not relevant to such | ||||||
8 | insurance coverage or claim and, when appropriate, may
| ||||||
9 | delete identifying data
relating to any person.
| ||||||
10 | (10) The Commissioner may furnish a copy of a report of | ||||||
11 | any examination
performed by
the Commissioner of the | ||||||
12 | condition and affairs of any electronic data processing
| ||||||
13 | entity to the
savings banks serviced by the electronic data | ||||||
14 | processing entity.
| ||||||
15 | (11) In addition to the foregoing circumstances, the | ||||||
16 | Commissioner may, but
is not
required to, furnish | ||||||
17 | confidential supervisory information under the same
| ||||||
18 | circumstances authorized
for the savings bank pursuant to | ||||||
19 | subsection (b) of this Section, except that
the | ||||||
20 | Commissioner shall
provide confidential supervisory | ||||||
21 | information under circumstances described in
paragraph (3) | ||||||
22 | of
subsection (b) of this Section only upon the request of | ||||||
23 | the savings bank.
| ||||||
24 | (b) A savings bank or its officers, agents, and employees | ||||||
25 | may disclose
confidential
supervisory information only under | ||||||
26 | the following circumstances:
|
| |||||||
| |||||||
1 | (1) to the board of directors of the savings bank, as | ||||||
2 | well as the
president, vice-president,
cashier, and other | ||||||
3 | officers of the savings bank to whom the board of directors
| ||||||
4 | may delegate
duties with respect to compliance with | ||||||
5 | recommendations for action, and to the
board of
directors | ||||||
6 | of a savings bank holding company that owns at least 80% of | ||||||
7 | the
outstanding stock of the
savings bank or other | ||||||
8 | financial institution.
| ||||||
9 | (2) to attorneys for the savings bank and to a | ||||||
10 | certified public
accountant engaged by the
savings bank to | ||||||
11 | perform an independent audit; provided that the attorney or
| ||||||
12 | certified public
accountant shall not permit the | ||||||
13 | confidential supervisory information to be
further | ||||||
14 | disseminated.
| ||||||
15 | (3) to any person who seeks to acquire a controlling | ||||||
16 | interest in, or who
seeks to merge with,
the savings bank; | ||||||
17 | provided that the person shall agree to be bound to respect
| ||||||
18 | the confidentiality
of the confidential supervisory | ||||||
19 | information and to not further disseminate the
information
| ||||||
20 | other than to attorneys, certified public accountants, | ||||||
21 | officers, agents, or
employees of that
person who likewise | ||||||
22 | shall agree to be bound to respect the confidentiality of
| ||||||
23 | the confidential
supervisory information and to not | ||||||
24 | further disseminate the information.
| ||||||
25 | (4) to the savings bank's insurance company, if the | ||||||
26 | supervisory
information contains
information that is |
| |||||||
| |||||||
1 | otherwise unavailable and is strictly necessary to
| ||||||
2 | obtaining insurance coverage or
pursuing an insurance | ||||||
3 | claim for or on behalf of the savings bank; provided
that, | ||||||
4 | when possible, the
savings bank shall disclose only | ||||||
5 | information that is relevant to obtaining
insurance | ||||||
6 | coverage or
pursuing an insurance claim, while maintaining | ||||||
7 | the confidentiality of financial
information
pertaining to | ||||||
8 | customers; and provided further that, when appropriate, | ||||||
9 | the
savings bank may delete
identifying data relating to
| ||||||
10 | any person.
| ||||||
11 | The disclosure of confidential supervisory information by | ||||||
12 | a savings bank
pursuant to this
subsection (b) and the | ||||||
13 | disclosure of information to the Commissioner or other
| ||||||
14 | regulatory agency in
connection with any examination, | ||||||
15 | visitation, or investigation shall not
constitute a waiver of | ||||||
16 | any
legal privilege otherwise available to the savings bank | ||||||
17 | with respect to the
information.
| ||||||
18 | (c) (1) Notwithstanding any other provision of this Act or | ||||||
19 | any other law,
confidential
supervisory information shall be | ||||||
20 | the property of the Commissioner and shall be
privileged from
| ||||||
21 | disclosure to any person except as provided in this Section. No | ||||||
22 | person in
possession of
confidential supervisory information | ||||||
23 | may disclose that information for any
reason or under any
| ||||||
24 | circumstances not specified in this Section without the prior | ||||||
25 | authorization of
the Commissioner.
Any person upon whom a | ||||||
26 | demand for production of confidential supervisory
information |
| |||||||
| |||||||
1 | is made,
whether by subpoena, order, or other judicial or | ||||||
2 | administrative process, must
withhold
production of the | ||||||
3 | confidential supervisory information and must notify the
| ||||||
4 | Commissioner of the
demand, at which time the Commissioner is | ||||||
5 | authorized to intervene for the
purpose of
enforcing the | ||||||
6 | limitations of this Section or seeking the withdrawal or
| ||||||
7 | termination of the attempt to
compel production of the | ||||||
8 | confidential supervisory information.
| ||||||
9 | (2) Any request for discovery or disclosure of confidential | ||||||
10 | supervisory
information, whether
by subpoena, order, or other | ||||||
11 | judicial or administrative process, shall be made
to the
| ||||||
12 | Commissioner, and the Commissioner shall determine within 15 | ||||||
13 | days whether to
disclose the
information pursuant to procedures | ||||||
14 | and standards that the Commissioner shall
establish by rule. If
| ||||||
15 | the Commissioner determines that such information will not be | ||||||
16 | disclosed, the
Commissioner's
decision shall be subject to | ||||||
17 | judicial review under the provisions of the
Administrative | ||||||
18 | Review
Law, and venue shall be in either Sangamon County or | ||||||
19 | Cook County.
| ||||||
20 | (3) Any court order that compels disclosure of confidential | ||||||
21 | supervisory
information may be
immediately appealed by the | ||||||
22 | Commissioner, and the order shall be automatically
stayed | ||||||
23 | pending the
outcome of the appeal.
| ||||||
24 | (d) If any officer, agent, attorney, or employee of a | ||||||
25 | savings bank knowingly
and willfully
furnishes confidential | ||||||
26 | supervisory information in violation of this Section,
the
|
| |||||||
| |||||||
1 | Commissioner may impose a civil monetary penalty up to $1,000 | ||||||
2 | for the violation
against
the officer, agent, attorney, or | ||||||
3 | employee.
| ||||||
4 | (e) Subject to the limits of this Section, the
| ||||||
5 | Commissioner also may promulgate regulations to set procedures | ||||||
6 | and
standards for
disclosure of
the
following items:
| ||||||
7 | (1) All fixed orders and opinions made in cases of
| ||||||
8 | appeals of the Commissioner's actions.
| ||||||
9 | (2) Statements of policy and interpretations adopted | ||||||
10 | by
the Commissioner's office, but not otherwise made | ||||||
11 | public.
| ||||||
12 | (3) Nonconfidential portions of application files,
| ||||||
13 | including applications for new charters. The Commissioner
| ||||||
14 | shall specify by rule as to what part of the files are
| ||||||
15 | confidential.
| ||||||
16 | (4) Quarterly reports of income, deposits, and | ||||||
17 | financial
condition.
| ||||||
18 | (Source: P.A. 93-271, eff. 7-22-03.)
| ||||||
19 | (205 ILCS 205/10090) | ||||||
20 | Sec. 10090. Dividends; dissolution. From time to time | ||||||
21 | during a receivership other than a receivership conducted by | ||||||
22 | the Federal Deposit Insurance Corporation, the Secretary shall | ||||||
23 | make and pay from moneys of the savings bank a ratable dividend | ||||||
24 | on all claims as may be proved to his or her satisfaction or | ||||||
25 | adjudicated by the court. Claims so proven or adjudicated shall |
| |||||||
| |||||||
1 | bear interest at the rate of 3% per annum from the date of the | ||||||
2 | appointment of the receiver to the date of payment, but all | ||||||
3 | dividends on a claim shall be applied first to principal. In | ||||||
4 | computing the amount of any dividend to be paid, if the | ||||||
5 | Secretary deems it desirable in the interests of economy of | ||||||
6 | administration and to the interest of the savings bank and its | ||||||
7 | creditors, he or she may pay up to the amount of $10 of each | ||||||
8 | claim or unpaid portion thereof in full. As the proceeds of the | ||||||
9 | assets of the savings bank are collected in the course of | ||||||
10 | liquidation, the Secretary shall make and pay further dividends | ||||||
11 | on all claims previously proven or adjudicated. After one year | ||||||
12 | from the entry of a judgment of dissolution, all unclaimed | ||||||
13 | dividends shall be remitted to the State Treasurer in | ||||||
14 | accordance with the Revised Uniform Disposition of Unclaimed | ||||||
15 | Property Act, as now or hereafter amended, together with a list | ||||||
16 | of all unpaid claimants, their last known addresses and the | ||||||
17 | amounts unpaid.
| ||||||
18 | (Source: P.A. 96-1365, eff. 7-28-10.)
| ||||||
19 | Section 17-60. The Illinois Credit Union Act is amended by | ||||||
20 | changing Sections 10 and 62 as follows:
| ||||||
21 | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||||||
22 | Sec. 10. Credit union records; member financial records.
| ||||||
23 | (1) A credit union shall establish and maintain books, | ||||||
24 | records, accounting
systems and procedures which accurately |
| |||||||
| |||||||
1 | reflect its operations and which
enable the Department to | ||||||
2 | readily ascertain the true financial condition
of the credit | ||||||
3 | union and whether it is complying with this Act.
| ||||||
4 | (2) A photostatic or photographic reproduction of any | ||||||
5 | credit union records
shall be admissible as evidence of | ||||||
6 | transactions with the credit union.
| ||||||
7 | (3)(a) For the purpose of this Section, the term "financial | ||||||
8 | records"
means any original, any copy, or any summary of (1) a | ||||||
9 | document granting
signature authority over an account, (2) a | ||||||
10 | statement, ledger card or other
record on any account which | ||||||
11 | shows each transaction in or with respect to
that account, (3) | ||||||
12 | a check, draft or money order drawn on a financial
institution | ||||||
13 | or other entity or issued and payable by or through a financial
| ||||||
14 | institution or other entity, or (4) any other item containing | ||||||
15 | information
pertaining to any relationship established in the | ||||||
16 | ordinary course of
business between a credit union and its | ||||||
17 | member, including financial
statements or other financial | ||||||
18 | information provided by the member.
| ||||||
19 | (b) This Section does not prohibit:
| ||||||
20 | (1) The preparation, examination, handling or | ||||||
21 | maintenance of any
financial records by any officer, | ||||||
22 | employee or agent of a credit union
having custody of such | ||||||
23 | records, or the examination of such records by a
certified | ||||||
24 | public accountant engaged by the credit union to perform an
| ||||||
25 | independent audit.
| ||||||
26 | (2) The examination of any financial records by or the |
| |||||||
| |||||||
1 | furnishing of
financial records by a credit union to any | ||||||
2 | officer, employee or agent of
the Department, the National | ||||||
3 | Credit Union Administration, Federal Reserve
board or any | ||||||
4 | insurer of share accounts for use solely in the exercise of
| ||||||
5 | his duties as an officer, employee or agent.
| ||||||
6 | (3) The publication of data furnished from financial | ||||||
7 | records relating
to members where the data cannot be | ||||||
8 | identified to any particular customer
of account.
| ||||||
9 | (4) The making of reports or returns required under | ||||||
10 | Chapter 61 of the
Internal Revenue Code of 1954.
| ||||||
11 | (5) Furnishing information concerning the dishonor of | ||||||
12 | any negotiable
instrument permitted to be disclosed under | ||||||
13 | the Uniform Commercial
Code.
| ||||||
14 | (6) The exchange in the regular course of business
of | ||||||
15 | (i) credit information
between a credit union and other | ||||||
16 | credit unions or financial institutions
or commercial | ||||||
17 | enterprises, directly or through a consumer reporting | ||||||
18 | agency
or (ii) financial records or information derived | ||||||
19 | from financial records
between a credit union and other | ||||||
20 | credit unions or financial institutions or
commercial | ||||||
21 | enterprises for
the purpose of conducting due diligence | ||||||
22 | pursuant to a merger or a purchase or
sale of assets or | ||||||
23 | liabilities of the credit union.
| ||||||
24 | (7) The furnishing of information to the appropriate | ||||||
25 | law enforcement
authorities where the credit union | ||||||
26 | reasonably believes it has been the victim
of a crime.
|
| |||||||
| |||||||
1 | (8) The furnishing of information pursuant to the | ||||||
2 | Revised Uniform Disposition
of Unclaimed Property Act.
| ||||||
3 | (9) The furnishing of information pursuant to the | ||||||
4 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
5 | Generation-Skipping Transfer Tax Act.
| ||||||
6 | (10) The furnishing of information pursuant to the | ||||||
7 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
8 | Title 31, United States Code,
Section 1051 et sequentia.
| ||||||
9 | (11) The furnishing of information pursuant to any | ||||||
10 | other statute which
by its terms or by regulations | ||||||
11 | promulgated thereunder requires the disclosure
of | ||||||
12 | financial records other than by subpoena, summons, warrant | ||||||
13 | or court order.
| ||||||
14 | (12) The furnishing of information in accordance with | ||||||
15 | the federal
Personal Responsibility and Work Opportunity | ||||||
16 | Reconciliation Act of 1996.
Any credit union governed by | ||||||
17 | this Act shall enter into an agreement for data
exchanges | ||||||
18 | with a State agency provided the State agency
pays to the | ||||||
19 | credit union a reasonable fee not to exceed its
actual cost | ||||||
20 | incurred. A credit union
providing
information in | ||||||
21 | accordance with this item shall not be liable to any | ||||||
22 | account
holder or other person for any disclosure of | ||||||
23 | information to a State agency, for
encumbering or | ||||||
24 | surrendering any assets held by the credit union in | ||||||
25 | response to
a lien
or order to withhold and deliver issued | ||||||
26 | by a State agency, or for any other
action taken pursuant |
| |||||||
| |||||||
1 | to this item, including individual or mechanical errors,
| ||||||
2 | provided the action does not constitute gross negligence or | ||||||
3 | willful misconduct.
A credit union shall have no obligation | ||||||
4 | to hold, encumber, or surrender
assets until
it has been | ||||||
5 | served with a subpoena, summons, warrant, court or | ||||||
6 | administrative
order, lien, or levy.
| ||||||
7 | (13) The furnishing of information to law enforcement | ||||||
8 | authorities, the
Illinois Department on
Aging and its | ||||||
9 | regional administrative and provider agencies, the | ||||||
10 | Department of
Human Services Office
of Inspector General, | ||||||
11 | or public guardians: (i) upon subpoena by the investigatory | ||||||
12 | entity or the guardian, or (ii) if there is suspicion by | ||||||
13 | the credit union that a
member who is an elderly person or | ||||||
14 | person with a disability has been or may become the victim | ||||||
15 | of financial exploitation.
For the purposes of this
item | ||||||
16 | (13), the term: (i) "elderly person" means a person who is | ||||||
17 | 60 or more
years of age, (ii) "person with a disability" | ||||||
18 | means a person who has or reasonably appears to the credit | ||||||
19 | union to
have a physical or mental
disability that impairs | ||||||
20 | his or her ability to seek or obtain protection from or
| ||||||
21 | prevent financial
exploitation, and (iii) "financial | ||||||
22 | exploitation" means tortious or illegal use
of the assets | ||||||
23 | or resources of
an elderly person or person with a | ||||||
24 | disability, and includes, without limitation,
| ||||||
25 | misappropriation of the elderly or
disabled person's | ||||||
26 | assets or resources by undue influence, breach of fiduciary
|
| |||||||
| |||||||
1 | relationship, intimidation,
fraud, deception, extortion, | ||||||
2 | or the use of assets or resources in any manner
contrary to | ||||||
3 | law. A credit
union or person furnishing information | ||||||
4 | pursuant to this item (13) shall be
entitled to the same | ||||||
5 | rights and
protections as a person furnishing information | ||||||
6 | under the Adult Protective Services Act and the Illinois
| ||||||
7 | Domestic Violence Act of 1986.
| ||||||
8 | (14) The disclosure of financial records or | ||||||
9 | information as necessary
to
effect, administer, or enforce | ||||||
10 | a transaction requested or authorized by the
member, or in | ||||||
11 | connection with:
| ||||||
12 | (A) servicing or processing a financial product or | ||||||
13 | service requested
or
authorized by the member;
| ||||||
14 | (B) maintaining or servicing a member's account | ||||||
15 | with the credit union;
or
| ||||||
16 | (C) a proposed or actual securitization or | ||||||
17 | secondary market sale
(including sales of servicing | ||||||
18 | rights) related to a
transaction of a member.
| ||||||
19 | Nothing in this item (14), however, authorizes the sale | ||||||
20 | of the financial
records or information of a member without | ||||||
21 | the consent of the member.
| ||||||
22 | (15) The disclosure of financial records or | ||||||
23 | information as necessary to
protect against or prevent | ||||||
24 | actual or potential fraud, unauthorized
transactions, | ||||||
25 | claims, or other liability.
| ||||||
26 | (16)(a) The disclosure of financial records or |
| |||||||
| |||||||
1 | information
related to a private label credit program | ||||||
2 | between a financial
institution and a private label party | ||||||
3 | in connection
with that private label credit program. Such | ||||||
4 | information
is limited to outstanding balance, available | ||||||
5 | credit, payment and
performance and account history, | ||||||
6 | product references, purchase
information,
and information | ||||||
7 | related to the identity of the
customer.
| ||||||
8 | (b)(1) For purposes of this paragraph (16) of | ||||||
9 | subsection
(b) of Section 10, a "private label credit | ||||||
10 | program" means a credit
program involving a financial | ||||||
11 | institution and a private label party
that is used by a | ||||||
12 | customer of the financial institution and the
private label | ||||||
13 | party primarily for payment for goods or services
sold, | ||||||
14 | manufactured, or distributed by a private label party.
| ||||||
15 | (2) For purposes of this paragraph (16) of subsection | ||||||
16 | (b)
of Section 10, a "private label party" means, with | ||||||
17 | respect to a
private label credit program, any of the | ||||||
18 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
19 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
20 | agent, or service provider.
| ||||||
21 | (c) Except as otherwise provided by this Act, a credit | ||||||
22 | union may not
disclose to any person, except to the member
or | ||||||
23 | his duly authorized agent, any financial records relating to | ||||||
24 | that member
of the credit union unless:
| ||||||
25 | (1) the member has authorized disclosure to the person;
| ||||||
26 | (2) the financial records are disclosed in response to |
| |||||||
| |||||||
1 | a lawful
subpoena,
summons, warrant, citation to discover | ||||||
2 | assets, or court order that meets the requirements of | ||||||
3 | subparagraph
(d) of this Section; or
| ||||||
4 | (3) the credit union is attempting to collect an | ||||||
5 | obligation owed to
the credit union and the credit union | ||||||
6 | complies with the provisions of
Section 2I of the Consumer | ||||||
7 | Fraud and Deceptive Business Practices Act.
| ||||||
8 | (d) A credit union shall disclose financial records under | ||||||
9 | subparagraph
(c)(2) of this Section pursuant to a lawful | ||||||
10 | subpoena, summons, warrant, citation to discover assets, or
| ||||||
11 | court order only after the credit union mails a copy of the | ||||||
12 | subpoena, summons,
warrant, citation to discover assets, or | ||||||
13 | court order to the person establishing the relationship with
| ||||||
14 | the credit union, if living, and otherwise his personal | ||||||
15 | representative,
if known, at his last known address by first | ||||||
16 | class mail, postage prepaid
unless the credit union is | ||||||
17 | specifically prohibited from notifying the person
by order of | ||||||
18 | court or by applicable State or federal law. In the case
of a | ||||||
19 | grand jury subpoena, a credit union shall not mail a copy of a | ||||||
20 | subpoena
to any person pursuant to this subsection if the | ||||||
21 | subpoena was issued by a grand
jury under the Statewide Grand | ||||||
22 | Jury Act or notifying the
person would constitute a violation | ||||||
23 | of the federal Right to Financial
Privacy Act of 1978.
| ||||||
24 | (e)(1) Any officer or employee of a credit union who | ||||||
25 | knowingly and
wilfully furnishes financial records in | ||||||
26 | violation of this Section is guilty of
a business offense and |
| |||||||
| |||||||
1 | upon conviction thereof shall be fined not more than
$1,000.
| ||||||
2 | (2) Any person who knowingly and wilfully induces or | ||||||
3 | attempts to induce
any officer or employee of a credit union to | ||||||
4 | disclose financial records
in violation of this Section is | ||||||
5 | guilty of a business offense and upon
conviction thereof shall | ||||||
6 | be fined not more than $1,000.
| ||||||
7 | (f) A credit union shall be reimbursed for costs which are | ||||||
8 | reasonably
necessary and which have been directly incurred in | ||||||
9 | searching for,
reproducing or transporting books, papers, | ||||||
10 | records or other data of a
member required or requested to be | ||||||
11 | produced pursuant to a lawful subpoena,
summons, warrant, | ||||||
12 | citation to discover assets, or court order. The Secretary and | ||||||
13 | the Director may determine, by rule, the
rates and
conditions | ||||||
14 | under which payment shall be made. Delivery of requested | ||||||
15 | documents
may be delayed until final reimbursement of all costs | ||||||
16 | is received.
| ||||||
17 | (Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15 .)
| ||||||
18 | (205 ILCS 305/62) (from Ch. 17, par. 4463)
| ||||||
19 | Sec. 62. Liquidation.
| ||||||
20 | (1) A credit union may elect to dissolve voluntarily
and | ||||||
21 | liquidate its affairs in the manner prescribed in this Section.
| ||||||
22 | (2) The board of directors shall adopt a resolution | ||||||
23 | recommending the credit
union be dissolved voluntarily, and | ||||||
24 | directing that the question of liquidating
be submitted to the | ||||||
25 | members.
|
| |||||||
| |||||||
1 | (3) Within 10 days after the board of directors decides to | ||||||
2 | submit the
question of liquidation to the members, the chairman | ||||||
3 | or president shall
notify the Secretary thereof, in writing, | ||||||
4 | setting forth the reasons for the
proposed action. Within 10 | ||||||
5 | days after the members act on the question of
liquidation, the | ||||||
6 | chairman or president shall notify the Secretary, in writing,
| ||||||
7 | as to whether or not the members approved the proposed | ||||||
8 | liquidation. The Secretary
then must determine whether this | ||||||
9 | Section has been complied with
and if his decision is | ||||||
10 | favorable, he shall prepare a certificate to the
effect that | ||||||
11 | this Section has been complied with, a copy of which will be
| ||||||
12 | retained by the Department and the other copy forwarded to the | ||||||
13 | credit union.
The certificate must be filed with the recorder | ||||||
14 | or if there is
no recorder, in the office of the county clerk | ||||||
15 | of the county or counties in
which the credit union is | ||||||
16 | operating, whereupon the credit union must cease
operations | ||||||
17 | except for the purpose of its liquidation.
| ||||||
18 | (4) As soon as the board of directors passes a resolution | ||||||
19 | to submit the
question of liquidation to the members, payment | ||||||
20 | on shares, withdrawal of
shares, making any transfer of shares | ||||||
21 | to loans and interest, making investments
of any kind and | ||||||
22 | granting loans shall be suspended pending action by members.
On | ||||||
23 | approval by the members of such proposal, all such operations | ||||||
24 | shall be
permanently discontinued. The necessary expenses of | ||||||
25 | operating shall, however,
continue to be paid on authorization | ||||||
26 | of the board of directors or the liquidating agent
during the |
| |||||||
| |||||||
1 | period of liquidation.
| ||||||
2 | (5) For a credit union to enter voluntary liquidation, it | ||||||
3 | must be approved
by affirmative vote of the members owning a | ||||||
4 | majority of the shares entitled
to vote, in person or by proxy, | ||||||
5 | at a regular or special meeting of the members.
Notice, in | ||||||
6 | writing, shall be given to each member, by first class mail,
at | ||||||
7 | least 10 days prior to such meeting. If liquidation is | ||||||
8 | approved, the board of directors
shall appoint a liquidating | ||||||
9 | agent for the purpose of
conserving and collecting the assets, | ||||||
10 | closing the affairs of the credit
union and distributing the | ||||||
11 | assets as required by this Act.
| ||||||
12 | (6) A liquidating credit union shall continue in existence | ||||||
13 | for the purpose
of discharging its debts, collecting and | ||||||
14 | distributing its assets, and doing
all acts required in order | ||||||
15 | to terminate its operations and may sue and be
sued for the | ||||||
16 | purpose of enforcing such debts and obligations until its | ||||||
17 | affairs
are fully adjusted.
| ||||||
18 | (7) Subject to such rules and regulations as the Secretary | ||||||
19 | may promulgate,
the liquidating agent shall use the assets of | ||||||
20 | the credit union to pay; first,
expenses incidental to | ||||||
21 | liquidating including any surety bond that may be
required; | ||||||
22 | then, liabilities of the credit union; then special classes of
| ||||||
23 | shares. The remaining assets shall then be distributed to the | ||||||
24 | members
proportionately to the dollar value of the shares held | ||||||
25 | by each member in
relation to the total dollar value of all | ||||||
26 | shares outstanding as of the date the
dissolution was voted.
|
| |||||||
| |||||||
1 | (8) As soon as the liquidating agent determines that all | ||||||
2 | assets as to
which there is a reasonable expectancy of sale or | ||||||
3 | transfer have been liquidated
and distributed as set forth in | ||||||
4 | this Section, he shall execute a certificate
of dissolution on | ||||||
5 | a form prescribed by the Department and file the same,
together | ||||||
6 | with all pertinent books and records of the liquidating credit
| ||||||
7 | union with the Department, whereupon such credit union shall be | ||||||
8 | dissolved.
The liquidating agent must, within 3 years after | ||||||
9 | issuance of a certificate
by the Secretary referred to in | ||||||
10 | Subsection (3) of this Section, discharge
the debts of the | ||||||
11 | credit union, collect and distribute its assets and do
all | ||||||
12 | other acts required to wind up its business.
| ||||||
13 | (9) If the Secretary determines that the liquidating agent | ||||||
14 | has failed to
make reasonable progress in the liquidating of | ||||||
15 | the credit union's affairs
and distribution of its assets or | ||||||
16 | has violated this Act, the Secretary may
take possession and | ||||||
17 | control of the credit union and remove the liquidating agent | ||||||
18 | and appoint a liquidating agent to complete the liquidation | ||||||
19 | under
his direction and control. The Secretary shall fill any | ||||||
20 | vacancy caused by
the resignation, death, illness, removal, | ||||||
21 | desertion or incapacity to function
of the liquidating agent.
| ||||||
22 | (10) Any funds representing unclaimed dividends and shares | ||||||
23 | in liquidation
and remaining in the hands of the board of | ||||||
24 | directors or the liquidating agent at the end of the | ||||||
25 | liquidation must be deposited by them, together with
all books | ||||||
26 | and papers of the credit union, with the State Treasurer in
|
| |||||||
| |||||||
1 | compliance with the Revised Uniform Disposition of Unclaimed | ||||||
2 | Property Act , approved
August 17, 1961, as amended .
| ||||||
3 | (Source: P.A. 97-133, eff. 1-1-12.)
| ||||||
4 | Section 17-65. The Currency Exchange Act is amended by | ||||||
5 | changing Sections 15.1b and 19.3 as follows:
| ||||||
6 | (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
| ||||||
7 | Sec. 15.1b. Liquidation; distribution; priority. The | ||||||
8 | General Assembly
finds and declares that community currency
| ||||||
9 | exchanges provide important and vital services to Illinois | ||||||
10 | citizens. The
General Assembly also finds that in providing | ||||||
11 | such services, community currency
exchanges transact extensive | ||||||
12 | business involving check cashing and the writing
of money | ||||||
13 | orders in communities in which banking services are generally
| ||||||
14 | unavailable. It is therefore declared to be the policy of this | ||||||
15 | State that customers who
receive these services must be | ||||||
16 | protected from insolvencies of currency
exchanges and | ||||||
17 | interruptions of services. To carry out this policy and to | ||||||
18 | insure that
customers of community currency exchanges are | ||||||
19 | protected in the event it
is determined that a community | ||||||
20 | currency exchange in receivership should
be liquidated in | ||||||
21 | accordance with Section 15.1a of this Act, the Secretary
shall | ||||||
22 | make a distribution of moneys collected by the receiver in the | ||||||
23 | following
order of priority: First, allowed claims for the | ||||||
24 | actual necessary expenses
of the receivership of the community |
| |||||||
| |||||||
1 | currency exchange being liquidated,
including (a) reasonable | ||||||
2 | receiver fees and receiver's attorney's fees approved
by the | ||||||
3 | Secretary, (b) all expenses of any preliminary or other | ||||||
4 | examinations
into the condition of the community currency | ||||||
5 | exchange or receivership,
(c) all expenses incurred by the | ||||||
6 | Secretary which are incident to possession
and control of any | ||||||
7 | property or records of the community currency exchange, and
(d) | ||||||
8 | reasonable expenses incurred by the Secretary as the result of | ||||||
9 | business
agreements or contractual arrangements necessary to | ||||||
10 | insure that the services
of the community currency exchanges | ||||||
11 | are delivered to the community without
interruption. Said | ||||||
12 | business agreements or contractual arrangements may
include, | ||||||
13 | but are not limited to, agreements made by the Secretary, or by
| ||||||
14 | the Receiver with the approval of the Secretary, with banks, | ||||||
15 | money order
companies, bonding companies and other types of | ||||||
16 | financial institutions;
Second, allowed claims by a purchaser | ||||||
17 | of money orders issued on demand of
the community currency | ||||||
18 | exchange being liquidated; Third, allowed claims
arising by | ||||||
19 | virtue of and to the extent of the amount a utility customer
| ||||||
20 | deposits with the community currency exchange being liquidated | ||||||
21 | which are
not remitted to the utility company; Fourth,
allowed | ||||||
22 | claims arising by virtue of and to the extent of the amount | ||||||
23 | paid
by a purchaser of Illinois license plates, vehicle | ||||||
24 | stickers sold for
State and municipal governments in Illinois, | ||||||
25 | and temporary
Illinois registration permits purchased at the | ||||||
26 | currency exchange being
liquidated; Fifth, allowed unsecured |
| |||||||
| |||||||
1 | claims for
wages or salaries, excluding vacation, severance and | ||||||
2 | sick leave pay earned
by employee earned within 90 days prior | ||||||
3 | to the appointment of a Receiver;
Sixth, secured claims; | ||||||
4 | Seventh, allowed unsecured claims of any tax, and interest and | ||||||
5 | penalty on
the tax; Eighth, allowed unsecured claims other than | ||||||
6 | a kind specified in
paragraph one, two and three of this | ||||||
7 | Section, filed with the Secretary within
the time the Secretary | ||||||
8 | fixes for filing claims; Ninth, allowed unsecured
claims, other | ||||||
9 | than a kind specified in paragraphs one, two and three of this
| ||||||
10 | Section filed with the Secretary after the time fixed for | ||||||
11 | filing claims
by the Secretary; Tenth, allowed creditor
claims | ||||||
12 | asserted by an owner, member, or stockholder of the community
| ||||||
13 | currency exchange
in liquidation; Eleventh, after one year from | ||||||
14 | the final dissolution of the
currency exchange, all assets not | ||||||
15 | used to satisfy allowed claims shall be
distributed pro rata to | ||||||
16 | the owner, owners, members, or stockholders of the
currency | ||||||
17 | exchange.
| ||||||
18 | The Secretary shall pay all claims of equal priority | ||||||
19 | according to the schedule
set out above, and shall not pay | ||||||
20 | claims of lower priority until all higher
priority claims are | ||||||
21 | satisfied. If insufficient assets are available to
meet all | ||||||
22 | claims of equal priority, those assets shall be distributed pro
| ||||||
23 | rata among those claims. All unclaimed assets of a currency | ||||||
24 | exchange shall
be deposited with the Secretary to be paid out | ||||||
25 | by him when proper claims
therefor are presented to the | ||||||
26 | Secretary. If there are funds remaining after the conclusion of |
| |||||||
| |||||||
1 | a receivership of an abandoned currency exchange, the remaining | ||||||
2 | funds shall be considered unclaimed property and remitted to | ||||||
3 | the State Treasurer under the Revised Uniform Disposition of | ||||||
4 | Unclaimed Property Act.
| ||||||
5 | (Source: P.A. 97-315, eff. 1-1-12.)
| ||||||
6 | (205 ILCS 405/19.3) (from Ch. 17, par. 4838)
| ||||||
7 | Sec. 19.3. (A) The General Assembly hereby finds and | ||||||
8 | declares: community
currency exchanges and ambulatory currency | ||||||
9 | exchanges provide important and
vital services to Illinois | ||||||
10 | citizens. In so doing, they transact extensive
business | ||||||
11 | involving check cashing and the writing of money orders in | ||||||
12 | communities
in which banking services are generally | ||||||
13 | unavailable. Customers of currency
exchanges who receive these | ||||||
14 | services must be protected from being charged
unreasonable and | ||||||
15 | unconscionable rates for cashing checks and purchasing
money | ||||||
16 | orders. The Illinois Department of Financial and Professional | ||||||
17 | Regulation has the
responsibility for regulating the | ||||||
18 | operations of currency exchanges and has
the expertise to | ||||||
19 | determine reasonable maximum rates to be charged for check
| ||||||
20 | cashing and money order purchases. Therefore, it is in the | ||||||
21 | public interest,
convenience, welfare and good to have the | ||||||
22 | Department establish reasonable
maximum rate schedules for | ||||||
23 | check cashing and the issuance of money orders
and to require | ||||||
24 | community and ambulatory currency exchanges to prominently
| ||||||
25 | display to the public the fees charged for all services.
The |
| |||||||
| |||||||
1 | Secretary shall review, each year, the cost of operation of the | ||||||
2 | Currency
Exchange Section and the revenue generated from | ||||||
3 | currency exchange
examinations and report to the General | ||||||
4 | Assembly if the need exists for an
increase in the fees | ||||||
5 | mandated by this Act to maintain the Currency Exchange Section
| ||||||
6 | at a fiscally self-sufficient level. The Secretary shall | ||||||
7 | include
in such report the total amount of funds remitted to | ||||||
8 | the State and delivered
to the State Treasurer by currency | ||||||
9 | exchanges pursuant to the Revised Uniform
Disposition of | ||||||
10 | Unclaimed Property Act.
| ||||||
11 | (B) The Secretary shall, by rules adopted in accordance | ||||||
12 | with the Illinois
Administrative Procedure Act, expeditiously | ||||||
13 | formulate and issue schedules of
reasonable maximum rates which | ||||||
14 | can be charged for check cashing and writing of
money orders by | ||||||
15 | community currency exchanges and ambulatory currency | ||||||
16 | exchanges.
| ||||||
17 | (1) In determining the maximum rate schedules for the | ||||||
18 | purposes of this
Section the Secretary shall take into | ||||||
19 | account:
| ||||||
20 | (a) Rates charged in the past for the cashing of | ||||||
21 | checks and the issuance
of money orders by community | ||||||
22 | and ambulatory currency exchanges.
| ||||||
23 | (b) Rates charged by banks or other business | ||||||
24 | entities for rendering the
same or similar services and | ||||||
25 | the factors upon which those rates are based.
| ||||||
26 | (c) The income, cost and expense of the operation |
| |||||||
| |||||||
1 | of currency exchanges.
| ||||||
2 | (d) Rates charged by currency exchanges or other | ||||||
3 | similar entities
located in other states for the same | ||||||
4 | or similar services and the factors upon
which those | ||||||
5 | rates are based.
| ||||||
6 | (e) Rates charged by the United States Postal | ||||||
7 | Service for the issuing
of money orders and the factors | ||||||
8 | upon which those rates are based.
| ||||||
9 | (f) A reasonable profit for a currency exchange | ||||||
10 | operation.
| ||||||
11 | (2)(a) The schedule of reasonable maximum rates | ||||||
12 | established pursuant
to this Section may be modified by the | ||||||
13 | Secretary from time to time pursuant
to rules adopted in | ||||||
14 | accordance with the Illinois Administrative Procedure Act.
| ||||||
15 | (b) Upon the filing of a verified petition setting | ||||||
16 | forth allegations
demonstrating reasonable cause to | ||||||
17 | believe that the schedule of maximum rates
previously | ||||||
18 | issued and promulgated should be adjusted, the Secretary | ||||||
19 | shall
expeditiously:
| ||||||
20 | (i) reject the petition if it fails to demonstrate | ||||||
21 | reasonable cause to
believe that an adjustment is | ||||||
22 | necessary; or
| ||||||
23 | (ii) conduct such hearings, in accordance with | ||||||
24 | this Section, as may be
necessary to determine whether | ||||||
25 | the petition should be granted in whole or in
part.
| ||||||
26 | (c) No petition may be filed pursuant to subparagraph |
| |||||||
| |||||||
1 | (a) of paragraph
(2) of subsection (B) unless:
| ||||||
2 | (i) at least nine months have expired since the | ||||||
3 | last promulgation of
schedules of maximum rates; and
| ||||||
4 | (ii) at least one-fourth of all community currency | ||||||
5 | exchange licensees
join in a petition or, in the case | ||||||
6 | of ambulatory currency exchanges, a licensee
or | ||||||
7 | licensees authorized to serve at least 100 locations | ||||||
8 | join in a petition.
| ||||||
9 | (3) Any currency exchange may charge lower fees than | ||||||
10 | those of the
applicable maximum fee schedule after filing | ||||||
11 | with the Secretary a schedule of
fees it proposes to use.
| ||||||
12 | (Source: P.A. 97-315, eff. 1-1-12.)
| ||||||
13 | Section 17-70. The Corporate Fiduciary Act is amended by | ||||||
14 | changing Section 6-14 as follows:
| ||||||
15 | (205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
| ||||||
16 | Sec. 6-14.
From time to time during receivership the
| ||||||
17 | Commissioner shall make and pay from monies of the corporate
| ||||||
18 | fiduciary a ratable dividend on all claims as may be proved to
| ||||||
19 | his or her satisfaction or adjudicated by the court. After one
| ||||||
20 | year from the entry of a judgment of dissolution, all unclaimed
| ||||||
21 | dividends shall be remitted to the State Treasurer in | ||||||
22 | accordance with the Revised
Uniform Disposition of Unclaimed | ||||||
23 | Property Act, as now or hereafter amended,
together with a list | ||||||
24 | of all unpaid claimants, their last known addresses and
the |
| |||||||
| |||||||
1 | amounts unpaid.
| ||||||
2 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
3 | Section 17-75. The Transmitters of Money Act is amended by | ||||||
4 | changing Section 30 as follows:
| ||||||
5 | (205 ILCS 657/30)
| ||||||
6 | Sec. 30. Surety bond.
| ||||||
7 | (a) An applicant for a license shall post and a
licensee | ||||||
8 | must maintain with the Director a bond or bonds issued by | ||||||
9 | corporations
qualified to do business as surety companies in | ||||||
10 | this State.
| ||||||
11 | (b) The applicant or licensee shall post a bond in the | ||||||
12 | amount of the greater
of $100,000
or an amount equal to the | ||||||
13 | daily average of outstanding payment instruments
for the | ||||||
14 | preceding 12 months or operational history, whichever is | ||||||
15 | shorter, up to
a maximum amount of $2,000,000. When the amount | ||||||
16 | of the required bond exceeds
$1,000,000, the applicant or | ||||||
17 | licensee may, in the alternative, post a bond in
the amount of | ||||||
18 | $1,000,000 plus a dollar for dollar increase in the net worth | ||||||
19 | of
the applicant or licensee over and above the amount required | ||||||
20 | in Section 20, up
to a total amount of $2,000,000.
| ||||||
21 | (c) The bond must be in a form satisfactory to the Director | ||||||
22 | and shall run
to the State of Illinois for the benefit of any | ||||||
23 | claimant against the applicant
or licensee with respect to the | ||||||
24 | receipt, handling, transmission, and payment
of money by the |
| |||||||
| |||||||
1 | licensee or authorized seller in connection with the licensed
| ||||||
2 | operations. A claimant damaged by a breach of the conditions of | ||||||
3 | a
bond
shall have a right to action upon the bond for damages | ||||||
4 | suffered thereby and
may bring suit directly on the bond, or | ||||||
5 | the Director may bring suit on
behalf of the claimant.
| ||||||
6 | (d) (Blank).
| ||||||
7 | (e) (Blank).
| ||||||
8 | (f) After receiving a license, the licensee must maintain
| ||||||
9 | the required bond plus net worth (if applicable) until
5 years | ||||||
10 | after it ceases to do business in this State unless all | ||||||
11 | outstanding
payment instruments are eliminated or the | ||||||
12 | provisions under the Revised Uniform
Disposition
of Unclaimed | ||||||
13 | Property Act have become operative and are adhered to by the
| ||||||
14 | licensee. Notwithstanding this provision, however, the amount | ||||||
15 | required to be
maintained may be reduced to the extent that the | ||||||
16 | amount of the licensee's
payment instruments outstanding in | ||||||
17 | this State are reduced.
| ||||||
18 | (g) If the Director at any time reasonably determines that | ||||||
19 | the required bond
is insecure, deficient in amount, or
| ||||||
20 | exhausted in
whole or in part, he may in writing require the | ||||||
21 | filing of a new or supplemental
bond in order to secure | ||||||
22 | compliance with this Act and may
demand compliance with the | ||||||
23 | requirement within 30 days following
service on the licensee.
| ||||||
24 | (Source: P.A. 92-400, eff. 1-1-02.)
| ||||||
25 | Section 17-80. The Adverse Claims to Deposit Accounts Act |
| |||||||
| |||||||
1 | is amended by changing Section 10 as follows:
| ||||||
2 | (205 ILCS 700/10)
| ||||||
3 | Sec. 10. Application of Act. This Act shall not preempt:
| ||||||
4 | (1) the Revised Uniform Disposition of Unclaimed Property | ||||||
5 | Act, nor shall any
provision of this Act be construed to | ||||||
6 | relieve any holder, including a financial
institution, from | ||||||
7 | reporting and remitting all unclaimed property, including
| ||||||
8 | deposit accounts, under the Revised Uniform Disposition of | ||||||
9 | Unclaimed Property Act;
| ||||||
10 | (2) the Uniform Commercial Code, nor shall any provision of | ||||||
11 | this Act be
construed as affecting the rights of a person with | ||||||
12 | respect to a deposit account
under the Uniform Commercial Code;
| ||||||
13 | (3) the provisions of Section 2-1402 of the Code of Civil | ||||||
14 | Procedure, nor
shall any provision of this Act be construed as | ||||||
15 | affecting the rights of a
person with respect to a deposit | ||||||
16 | account under Section 2-1402 of the Code of
Civil Procedure;
| ||||||
17 | (4) the provisions of Part 7 of Article II of the Code of | ||||||
18 | Civil Procedure,
nor shall any provision of this Act be | ||||||
19 | construed as affecting the rights of a
person with respect to a | ||||||
20 | deposit account under the provisions of Part 7 of
Article II of | ||||||
21 | the Code of Civil Procedure;
| ||||||
22 | (5) the provisions of Article XXV of the Probate Act of | ||||||
23 | 1975, nor shall any
provision of this Act be construed as | ||||||
24 | affecting the rights of a person with
respect to a deposit | ||||||
25 | account under the provisions of Article XXV of the
Probate Act |
| |||||||
| |||||||
1 | of 1975; or
| ||||||
2 | (6) the Safety Deposit Box Opening Act, nor shall any | ||||||
3 | provision of this Act
be construed as affecting the rights of a | ||||||
4 | person with respect to a deposit
account under the Safety | ||||||
5 | Deposit Box Opening Act.
| ||||||
6 | (Source: P.A. 89-601, eff. 8-2-96.)
| ||||||
7 | Section 17-85. The Illinois Insurance Code is amended by | ||||||
8 | changing Section 210 as follows:
| ||||||
9 | (215 ILCS 5/210) (from Ch. 73, par. 822)
| ||||||
10 | Sec. 210. Distribution of assets; priorities; unpaid | ||||||
11 | dividends.
| ||||||
12 | (1) Any time after the last day fixed for the filing of
| ||||||
13 | proofs of claims in the liquidation of a company, the court | ||||||
14 | may, upon the
application of the Director authorize him to | ||||||
15 | declare out of the funds
remaining in his hands, one or more | ||||||
16 | dividends upon all claims allowed in
accordance with the | ||||||
17 | priorities established in Section 205.
| ||||||
18 | (2) Where there has been no adjudication of insolvency, the | ||||||
19 | Director
shall pay all allowed claims in full in accordance | ||||||
20 | with the priorities set
forth in Section 205. The director | ||||||
21 | shall not be chargeable for any
assets so distributed to any | ||||||
22 | claimant who has failed to file a proper proof
of claim before | ||||||
23 | such distribution has been made.
| ||||||
24 | (3) When subsequent to an adjudication of insolvency, |
| |||||||
| |||||||
1 | pursuant to Section
208, a surplus is found to exist after the | ||||||
2 | payment in full of all allowed
claims falling within the | ||||||
3 | priorities set forth in paragraphs (a), (b), (c),
(d),
(e), (f) | ||||||
4 | and (g) of subsection (1) of Section 205 and which have been | ||||||
5 | duly
filed prior to the last date fixed for the filing thereof, | ||||||
6 | and after the
setting aside of a reserve for all additional | ||||||
7 | costs and expenses of the
proceeding, the court shall set a new | ||||||
8 | date for the filing of claims. After the
expiration of the new | ||||||
9 | date, all allowed claims filed on or before said new date
| ||||||
10 | together with all previously allowed claims falling within the | ||||||
11 | priorities set
forth in paragraphs (h) and (i) of subsection | ||||||
12 | (1) of Section 205 shall be paid
in accordance with the | ||||||
13 | priorities set forth in Section 205.
| ||||||
14 | (4) Dividends remaining unclaimed or unpaid in the hands of | ||||||
15 | the
Director for 6 months after the final order of distribution | ||||||
16 | may be
by him deposited in one or more savings and loan | ||||||
17 | associations, State or
national banks, trust companies or | ||||||
18 | savings banks to the credit of the Director,
whomsoever he may | ||||||
19 | be, in trust for the person entitled thereto, but no such
| ||||||
20 | person shall be entitled to any interest upon such deposit. All | ||||||
21 | such deposits
shall be entitled to priority of payment in case | ||||||
22 | of the insolvency or voluntary
or involuntary liquidation of | ||||||
23 | the depositary on an equality with any other
priority given by | ||||||
24 | the banking law. Any such funds together with interest, if
any, | ||||||
25 | paid or credited thereon, remaining and unclaimed in the hands | ||||||
26 | of the
Director in Trust after 2 years shall be presumed |
| |||||||
| |||||||
1 | abandoned and reported and
delivered to the State Treasurer and | ||||||
2 | become subject to the provisions of the Revised
Uniform | ||||||
3 | Disposition of Unclaimed Property Act.
| ||||||
4 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
5 | Section 17-90. The Unclaimed Life Insurance Benefits Act is | ||||||
6 | amended by changing Sections 5, 15, and 20 as follows:
| ||||||
7 | (215 ILCS 185/5)
| ||||||
8 | Sec. 5. Purpose. This Act shall require recognition of the | ||||||
9 | Revised Uniform Disposition of Unclaimed Property Act and | ||||||
10 | require the complete and proper disclosure, transparency, and | ||||||
11 | accountability relating to any method of payment for life | ||||||
12 | insurance, annuity, or retained asset agreement death | ||||||
13 | benefits.
| ||||||
14 | (Source: P.A. 99-893, eff. 1-1-17 .)
| ||||||
15 | (215 ILCS 185/15)
| ||||||
16 | Sec. 15. Insurer conduct. | ||||||
17 | (a) An insurer shall initially perform a comparison of its | ||||||
18 | insureds', annuitants', and retained asset account holders' | ||||||
19 | in-force policies, annuity contracts, and retained asset | ||||||
20 | accounts by using the full Death Master File. The initial | ||||||
21 | comparison shall be completed on or before December 31, 2017, | ||||||
22 | unless extended by the Department pursuant to administrative | ||||||
23 | rule. Thereafter, an insurer shall perform a comparison on at |
| |||||||
| |||||||
1 | least a semi-annual basis using the Death Master File update | ||||||
2 | files for comparisons to identify potential matches of its | ||||||
3 | insureds, annuitants, and retained asset account holders. In | ||||||
4 | the event that one of the insurer's lines of business conducts | ||||||
5 | a search for matches of its insureds, annuitants, and retained | ||||||
6 | asset account holders against the Death Master File at | ||||||
7 | intervals more frequently than semi-annually, then all lines of | ||||||
8 | the insurer's business shall conduct searches for matches | ||||||
9 | against the Death Master File with the same frequency. | ||||||
10 | An insured, an annuitant, or a retained asset account | ||||||
11 | holder is presumed dead if the date of his or her death is | ||||||
12 | indicated by the comparison required in this subsection (a), | ||||||
13 | unless the insurer has competent and substantial evidence that | ||||||
14 | the person is living, including, but not limited to, a contact | ||||||
15 | made by the insurer with the person or his or her legal | ||||||
16 | representative. | ||||||
17 | For those potential matches identified as a result of a | ||||||
18 | Death Master File match, the insurer shall within 120 days | ||||||
19 | after the date of death notice, if the insurer has not been | ||||||
20 | contacted by a beneficiary, determine whether benefits are due | ||||||
21 | in accordance with the applicable policy or contract and, if | ||||||
22 | benefits are due in accordance with the applicable policy or | ||||||
23 | contract: | ||||||
24 | (1) use good faith efforts, which shall be documented | ||||||
25 | by the insurer, to locate the beneficiary or beneficiaries; | ||||||
26 | the Department shall establish by administrative rule |
| |||||||
| |||||||
1 | minimum standards for what constitutes good faith efforts | ||||||
2 | to locate a beneficiary, which shall include: (A) searching | ||||||
3 | insurer records; (B) the appropriate use of First Class | ||||||
4 | United States mail, e-mail addresses, and telephone calls; | ||||||
5 | and (C) reasonable efforts by insurers to obtain updated | ||||||
6 | contact information for the beneficiary or beneficiaries; | ||||||
7 | good faith efforts shall not include additional attempts to | ||||||
8 | contact the beneficiary at an address already confirmed not | ||||||
9 | to be current; and | ||||||
10 | (2) provide the appropriate claims forms or | ||||||
11 | instructions to the beneficiary or beneficiaries to make a | ||||||
12 | claim, including the need to provide an official death | ||||||
13 | certificate if applicable under the policy or annuity | ||||||
14 | contract. | ||||||
15 | (b) Insurers shall implement procedures to account for the | ||||||
16 | following when conducting searches of the Death Master File: | ||||||
17 | (1) common nicknames, initials used in lieu of a first | ||||||
18 | or middle name, use of a middle name, compound first and | ||||||
19 | middle names, and interchanged first and middle names; | ||||||
20 | (2) compound last names, maiden or married names, and | ||||||
21 | hyphens, blank spaces, or apostrophes in last names; | ||||||
22 | (3) transposition of the "month" and "date" portions of | ||||||
23 | the date of birth; and | ||||||
24 | (4) incomplete social security numbers. | ||||||
25 | (c) To the extent permitted by law, an insurer may disclose | ||||||
26 | the minimum necessary personal information about the insured, |
| |||||||
| |||||||
1 | annuity owner, retained asset account holder, or beneficiary to | ||||||
2 | a person whom the insurer reasonably believes may be able to | ||||||
3 | assist the insurer with locating the beneficiary or a person | ||||||
4 | otherwise entitled to payment of the claims proceeds. | ||||||
5 | (d) An insurer or its service provider shall not charge any | ||||||
6 | beneficiary or other authorized representative for any fees or | ||||||
7 | costs associated with a Death Master File search or | ||||||
8 | verification of a Death Master File match conducted pursuant to | ||||||
9 | this Act. | ||||||
10 | (e) The benefits from a policy, annuity contract, or a | ||||||
11 | retained asset account, plus any applicable accrued interest, | ||||||
12 | shall first be payable to the designated beneficiaries or | ||||||
13 | owners and, in the event the beneficiaries or owners cannot be | ||||||
14 | found, shall be reported and delivered to the State Treasurer | ||||||
15 | pursuant to the Revised Uniform Disposition of Unclaimed | ||||||
16 | Property Act. Nothing in this subsection (e) is intended to | ||||||
17 | alter the amounts reportable under the existing provisions of | ||||||
18 | the Revised Uniform Disposition of Unclaimed Property Act or to | ||||||
19 | allow the imposition of additional statutory interest under | ||||||
20 | Article XIV of the Illinois Insurance Code. | ||||||
21 | (f) Failure to meet any requirement of this Section with | ||||||
22 | such frequency as to constitute a general business practice is | ||||||
23 | a violation of Section 424 of the Illinois Insurance Code. | ||||||
24 | Nothing in this Section shall be construed to create or imply a | ||||||
25 | private cause of action for a violation of this Section.
| ||||||
26 | (Source: P.A. 99-893, eff. 1-1-17 .)
|
| |||||||
| |||||||
1 | (215 ILCS 185/20)
| ||||||
2 | Sec. 20. Revised Uniform Disposition of Unclaimed Property | ||||||
3 | Act. Nothing in this Act shall be construed to amend, modify, | ||||||
4 | or supersede the Revised Uniform Disposition of Unclaimed | ||||||
5 | Property Act, including the authority of the State Treasurer to | ||||||
6 | examine the records of any person if the State Treasurer has | ||||||
7 | reason to believe that such person has failed to report | ||||||
8 | property that should have been reported pursuant to the Revised | ||||||
9 | Uniform Disposition of Unclaimed Property Act.
| ||||||
10 | (Source: P.A. 99-893, eff. 1-1-17 .)
| ||||||
11 | Section 17-95. The Real Estate License Act of 2000 is | ||||||
12 | amended by changing Section 20-20 as follows:
| ||||||
13 | (225 ILCS 454/20-20)
| ||||||
14 | (Section scheduled to be repealed on January 1, 2020)
| ||||||
15 | Sec. 20-20. Grounds for discipline. | ||||||
16 | (a) The Department may refuse to issue or renew a license, | ||||||
17 | may place on probation, suspend,
or
revoke any
license, | ||||||
18 | reprimand, or take any other disciplinary or non-disciplinary | ||||||
19 | action as the Department may deem proper and impose a
fine not | ||||||
20 | to exceed
$25,000 upon any licensee or applicant under this Act | ||||||
21 | or any person who holds himself or herself out as an applicant | ||||||
22 | or licensee or against a licensee in handling his or her own | ||||||
23 | property, whether held by deed, option, or otherwise, for any |
| |||||||
| |||||||
1 | one or any combination of the
following causes:
| ||||||
2 | (1) Fraud or misrepresentation in applying for, or | ||||||
3 | procuring, a license under this Act or in connection with | ||||||
4 | applying for renewal of a license under this Act.
| ||||||
5 | (2) The conviction of or plea of guilty or plea of nolo | ||||||
6 | contendere to a felony or misdemeanor in this State or any | ||||||
7 | other jurisdiction; or the entry of an administrative | ||||||
8 | sanction by a government agency in this State or any other | ||||||
9 | jurisdiction. Action taken under this paragraph (2) for a | ||||||
10 | misdemeanor or an administrative sanction is limited to a | ||||||
11 | misdemeanor or administrative sanction that has as an
| ||||||
12 | essential element dishonesty or fraud or involves larceny, | ||||||
13 | embezzlement,
or obtaining money, property, or credit by | ||||||
14 | false pretenses or by means of a
confidence
game.
| ||||||
15 | (3) Inability to practice the profession with | ||||||
16 | reasonable judgment, skill, or safety as a result of a | ||||||
17 | physical illness, including, but not limited to, | ||||||
18 | deterioration through the aging process or loss of motor | ||||||
19 | skill, or a mental illness or disability.
| ||||||
20 | (4) Practice under this Act as a licensee in a retail | ||||||
21 | sales establishment from an office, desk, or space that
is | ||||||
22 | not
separated from the main retail business by a separate | ||||||
23 | and distinct area within
the
establishment.
| ||||||
24 | (5) Having been disciplined by another state, the | ||||||
25 | District of Columbia, a territory, a foreign nation, or a | ||||||
26 | governmental agency authorized to impose discipline if at |
| |||||||
| |||||||
1 | least one of the grounds for that discipline is the same as | ||||||
2 | or
the
equivalent of one of the grounds for which a | ||||||
3 | licensee may be disciplined under this Act. A certified | ||||||
4 | copy of the record of the action by the other state or | ||||||
5 | jurisdiction shall be prima facie evidence thereof.
| ||||||
6 | (6) Engaging in the practice of real estate brokerage
| ||||||
7 | without a
license or after the licensee's license was | ||||||
8 | expired or while the license was
inoperative.
| ||||||
9 | (7) Cheating on or attempting to subvert the Real
| ||||||
10 | Estate License Exam or continuing education exam. | ||||||
11 | (8) Aiding or abetting an applicant
to
subvert or cheat | ||||||
12 | on the Real Estate License Exam or continuing education | ||||||
13 | exam
administered pursuant to this Act.
| ||||||
14 | (9) Advertising that is inaccurate, misleading, or | ||||||
15 | contrary to the provisions of the Act.
| ||||||
16 | (10) Making any substantial misrepresentation or | ||||||
17 | untruthful advertising.
| ||||||
18 | (11) Making any false promises of a character likely to | ||||||
19 | influence,
persuade,
or induce.
| ||||||
20 | (12) Pursuing a continued and flagrant course of | ||||||
21 | misrepresentation or the
making
of false promises through | ||||||
22 | licensees, employees, agents, advertising, or
otherwise.
| ||||||
23 | (13) Any misleading or untruthful advertising, or | ||||||
24 | using any trade name or
insignia of membership in any real | ||||||
25 | estate organization of which the licensee is
not a member.
| ||||||
26 | (14) Acting for more than one party in a transaction |
| |||||||
| |||||||
1 | without providing
written
notice to all parties for whom | ||||||
2 | the licensee acts.
| ||||||
3 | (15) Representing or attempting to represent a broker | ||||||
4 | other than the
sponsoring broker.
| ||||||
5 | (16) Failure to account for or to remit any moneys or | ||||||
6 | documents coming into
his or her possession that belong to | ||||||
7 | others.
| ||||||
8 | (17) Failure to maintain and deposit in a special | ||||||
9 | account, separate and
apart from
personal and other | ||||||
10 | business accounts, all escrow moneys belonging to others
| ||||||
11 | entrusted to a licensee
while acting as a broker, escrow | ||||||
12 | agent, or temporary custodian of
the funds of others or
| ||||||
13 | failure to maintain all escrow moneys on deposit in the | ||||||
14 | account until the
transactions are
consummated or | ||||||
15 | terminated, except to the extent that the moneys, or any | ||||||
16 | part
thereof, shall be: | ||||||
17 | (A)
disbursed prior to the consummation or | ||||||
18 | termination (i) in accordance with
the
written | ||||||
19 | direction of
the principals to the transaction or their | ||||||
20 | duly authorized agents, (ii) in accordance with
| ||||||
21 | directions providing for the
release, payment, or | ||||||
22 | distribution of escrow moneys contained in any written
| ||||||
23 | contract signed by the
principals to the transaction or | ||||||
24 | their duly authorized agents,
or (iii)
pursuant to an | ||||||
25 | order of a court of competent
jurisdiction; or | ||||||
26 | (B) deemed abandoned and transferred to the Office |
| |||||||
| |||||||
1 | of the State Treasurer to be handled as unclaimed | ||||||
2 | property pursuant to the Revised Uniform Disposition | ||||||
3 | of Unclaimed Property Act. Escrow moneys may be deemed | ||||||
4 | abandoned under this subparagraph (B) only: (i) in the | ||||||
5 | absence of disbursement under subparagraph (A); (ii) | ||||||
6 | in the absence of notice of the filing of any claim in | ||||||
7 | a court of competent jurisdiction; and (iii) if 6 | ||||||
8 | months have elapsed after the receipt of a written | ||||||
9 | demand for the escrow moneys from one of the principals | ||||||
10 | to the transaction or the principal's duly authorized | ||||||
11 | agent.
| ||||||
12 | The account
shall be noninterest
bearing, unless the | ||||||
13 | character of the deposit is such that payment of interest
| ||||||
14 | thereon is otherwise
required by law or unless the | ||||||
15 | principals to the transaction specifically
require, in | ||||||
16 | writing, that the
deposit be placed in an interest bearing | ||||||
17 | account.
| ||||||
18 | (18) Failure to make available to the Department all | ||||||
19 | escrow records and related documents
maintained in | ||||||
20 | connection
with the practice of real estate within 24 hours | ||||||
21 | of a request for those
documents by Department personnel.
| ||||||
22 | (19) Failing to furnish copies upon request of | ||||||
23 | documents relating to a
real
estate transaction to a party | ||||||
24 | who has executed that document.
| ||||||
25 | (20) Failure of a sponsoring broker to timely provide | ||||||
26 | information, sponsor
cards,
or termination of licenses to |
| |||||||
| |||||||
1 | the Department.
| ||||||
2 | (21) Engaging in dishonorable, unethical, or | ||||||
3 | unprofessional conduct of a
character
likely to deceive, | ||||||
4 | defraud, or harm the public.
| ||||||
5 | (22) Commingling the money or property of others with | ||||||
6 | his or her own money or property.
| ||||||
7 | (23) Employing any person on a purely temporary or | ||||||
8 | single deal basis as a
means
of evading the law regarding | ||||||
9 | payment of commission to nonlicensees on some
contemplated
| ||||||
10 | transactions.
| ||||||
11 | (24) Permitting the use of his or her license as a | ||||||
12 | broker to enable a
leasing agent or
unlicensed person to | ||||||
13 | operate a real estate business without actual
| ||||||
14 | participation therein and control
thereof by the broker.
| ||||||
15 | (25) Any other conduct, whether of the same or a | ||||||
16 | different character from
that
specified in this Section, | ||||||
17 | that constitutes dishonest dealing.
| ||||||
18 | (26) Displaying a "for rent" or "for sale" sign on any | ||||||
19 | property without
the written
consent of an owner or his or | ||||||
20 | her duly authorized agent or advertising by any
means that | ||||||
21 | any property is
for sale or for rent without the written | ||||||
22 | consent of the owner or his or her
authorized agent.
| ||||||
23 | (27) Failing to provide information requested by the | ||||||
24 | Department, or otherwise respond to that request, within 30 | ||||||
25 | days of
the
request.
| ||||||
26 | (28) Advertising by means of a blind advertisement, |
| |||||||
| |||||||
1 | except as otherwise
permitted in Section 10-30 of this Act.
| ||||||
2 | (29) Offering guaranteed sales plans, as defined in | ||||||
3 | clause (A) of
this subdivision (29), except to
the extent | ||||||
4 | hereinafter set forth:
| ||||||
5 | (A) A "guaranteed sales plan" is any real estate | ||||||
6 | purchase or sales plan
whereby a licensee enters into a | ||||||
7 | conditional or unconditional written contract
with a | ||||||
8 | seller, prior to entering into a brokerage agreement | ||||||
9 | with the seller, by the
terms of which a licensee | ||||||
10 | agrees to purchase a property of the seller within a
| ||||||
11 | specified period of time
at a specific price in the | ||||||
12 | event the property is not sold in accordance with
the | ||||||
13 | terms of a brokerage agreement to be entered into | ||||||
14 | between the sponsoring broker and the seller.
| ||||||
15 | (B) A licensee offering a guaranteed sales plan | ||||||
16 | shall provide the
details
and conditions of the plan in | ||||||
17 | writing to the party to whom the plan is
offered.
| ||||||
18 | (C) A licensee offering a guaranteed sales plan | ||||||
19 | shall provide to the
party
to whom the plan is offered | ||||||
20 | evidence of sufficient financial resources to
satisfy | ||||||
21 | the commitment to
purchase undertaken by the broker in | ||||||
22 | the plan.
| ||||||
23 | (D) Any licensee offering a guaranteed sales plan | ||||||
24 | shall undertake to
market the property of the seller | ||||||
25 | subject to the plan in the same manner in
which the | ||||||
26 | broker would
market any other property, unless the |
| |||||||
| |||||||
1 | agreement with the seller provides
otherwise.
| ||||||
2 | (E) The licensee cannot purchase seller's property | ||||||
3 | until the brokerage agreement has ended according to | ||||||
4 | its terms or is otherwise terminated. | ||||||
5 | (F) Any licensee who fails to perform on a | ||||||
6 | guaranteed sales plan in
strict accordance with its | ||||||
7 | terms shall be subject to all the penalties provided
in | ||||||
8 | this Act for
violations thereof and, in addition, shall | ||||||
9 | be subject to a civil fine payable
to the party injured | ||||||
10 | by the
default in an amount of up to $25,000.
| ||||||
11 | (30) Influencing or attempting to influence, by any | ||||||
12 | words or acts, a
prospective
seller, purchaser, occupant, | ||||||
13 | landlord, or tenant of real estate, in connection
with | ||||||
14 | viewing, buying, or
leasing real estate, so as to promote | ||||||
15 | or tend to promote the continuance
or maintenance of
| ||||||
16 | racially and religiously segregated housing or so as to | ||||||
17 | retard, obstruct, or
discourage racially
integrated | ||||||
18 | housing on or in any street, block, neighborhood, or | ||||||
19 | community.
| ||||||
20 | (31) Engaging in any act that constitutes a violation | ||||||
21 | of any provision of
Article 3 of the Illinois Human Rights | ||||||
22 | Act, whether or not a complaint has
been filed with or
| ||||||
23 | adjudicated by the Human Rights Commission.
| ||||||
24 | (32) Inducing any party to a contract of sale or lease | ||||||
25 | or brokerage
agreement to
break the contract of sale or | ||||||
26 | lease or brokerage agreement for the purpose of
|
| |||||||
| |||||||
1 | substituting, in lieu
thereof, a new contract for sale or | ||||||
2 | lease or brokerage agreement with a third
party.
| ||||||
3 | (33) Negotiating a sale, exchange, or lease of real | ||||||
4 | estate directly with
any person
if the licensee knows that | ||||||
5 | the person has an exclusive brokerage
agreement with | ||||||
6 | another
broker, unless specifically authorized by that | ||||||
7 | broker.
| ||||||
8 | (34) When a licensee is also an attorney, acting as the | ||||||
9 | attorney for
either the
buyer or the seller in the same | ||||||
10 | transaction in which the licensee is acting or
has acted as | ||||||
11 | a managing broker
or broker.
| ||||||
12 | (35) Advertising or offering merchandise or services | ||||||
13 | as free if any
conditions or
obligations necessary for | ||||||
14 | receiving the merchandise or services are not
disclosed in | ||||||
15 | the same
advertisement or offer. These conditions or | ||||||
16 | obligations include without
limitation the
requirement | ||||||
17 | that the recipient attend a promotional activity or visit a | ||||||
18 | real
estate site. As used in this
subdivision (35), "free" | ||||||
19 | includes terms such as "award", "prize", "no charge",
"free | ||||||
20 | of charge",
"without charge", and similar words or phrases | ||||||
21 | that reasonably lead a person to
believe that he or she
may | ||||||
22 | receive or has been selected to receive something of value, | ||||||
23 | without any
conditions or
obligations on the part of the | ||||||
24 | recipient.
| ||||||
25 | (36) Disregarding or violating any provision of the | ||||||
26 | Land Sales
Registration Act of 1989, the Illinois Real |
| |||||||
| |||||||
1 | Estate
Time-Share Act, or the published rules promulgated | ||||||
2 | by the Department to enforce
those Acts.
| ||||||
3 | (37) Violating the terms of a disciplinary order
issued | ||||||
4 | by the Department.
| ||||||
5 | (38) Paying or failing to disclose compensation in | ||||||
6 | violation of Article 10 of this Act.
| ||||||
7 | (39) Requiring a party to a transaction who is not a | ||||||
8 | client of the
licensee
to allow the licensee to retain a | ||||||
9 | portion of the escrow moneys for payment of
the licensee's | ||||||
10 | commission or expenses as a condition for release of the | ||||||
11 | escrow
moneys to that party.
| ||||||
12 | (40) Disregarding or violating any provision of this | ||||||
13 | Act or the published
rules
promulgated by the Department to | ||||||
14 | enforce this Act or aiding or abetting any individual,
| ||||||
15 | partnership, registered limited liability partnership, | ||||||
16 | limited liability
company, or corporation in
disregarding | ||||||
17 | any provision of this Act or the published rules | ||||||
18 | promulgated by the Department
to enforce this Act.
| ||||||
19 | (41) Failing to provide the minimum services required | ||||||
20 | by Section 15-75 of this Act when acting under an exclusive | ||||||
21 | brokerage agreement.
| ||||||
22 | (42) Habitual or excessive use or addiction to alcohol, | ||||||
23 | narcotics, stimulants, or any other chemical agent or drug | ||||||
24 | that results in a managing broker, broker, or leasing | ||||||
25 | agent's inability to practice with reasonable skill or | ||||||
26 | safety. |
| |||||||
| |||||||
1 | (43) Enabling, aiding, or abetting an auctioneer, as | ||||||
2 | defined in the Auction License Act, to conduct a real | ||||||
3 | estate auction in a manner that is in violation of this | ||||||
4 | Act. | ||||||
5 | (b) The Department may refuse to issue or renew or may | ||||||
6 | suspend the license of any person who fails to file a return, | ||||||
7 | pay the tax, penalty or interest shown in a filed return, or | ||||||
8 | pay any final assessment of tax, penalty, or interest, as | ||||||
9 | required by any tax Act administered by the Department of | ||||||
10 | Revenue, until such time as the requirements of that tax Act | ||||||
11 | are satisfied in accordance with subsection (g) of Section | ||||||
12 | 2105-15 of the Civil Administrative Code of Illinois. | ||||||
13 | (c) The Department shall deny a license or renewal | ||||||
14 | authorized by this Act to a person who has defaulted on an | ||||||
15 | educational loan or scholarship provided or guaranteed by the | ||||||
16 | Illinois Student Assistance Commission or any governmental | ||||||
17 | agency of this State in accordance with item (5) of subsection | ||||||
18 | (a) of Section 2105-15 of the Civil Administrative Code of | ||||||
19 | Illinois. | ||||||
20 | (d) In cases where the Department of Healthcare and Family | ||||||
21 | Services (formerly Department of Public Aid) has previously | ||||||
22 | determined that a licensee or a potential licensee is more than | ||||||
23 | 30 days delinquent in the payment of child support and has | ||||||
24 | subsequently certified the delinquency to the Department may | ||||||
25 | refuse to issue or renew or may revoke or suspend that person's | ||||||
26 | license or may take other disciplinary action against that |
| |||||||
| |||||||
1 | person based solely upon the certification of delinquency made | ||||||
2 | by the Department of Healthcare and Family Services in | ||||||
3 | accordance with item (5) of subsection (a) of Section 2105-15 | ||||||
4 | of the Civil Administrative Code of Illinois. | ||||||
5 | (e) In enforcing this Section, the Department or Board upon | ||||||
6 | a showing of a possible violation may compel an individual | ||||||
7 | licensed to practice under this Act, or who has applied for | ||||||
8 | licensure under this Act, to submit to a mental or physical | ||||||
9 | examination, or both, as required by and at the expense of the | ||||||
10 | Department. The Department or Board may order the examining | ||||||
11 | physician to present testimony concerning the mental or | ||||||
12 | physical examination of the licensee or applicant. No | ||||||
13 | information shall be excluded by reason of any common law or | ||||||
14 | statutory privilege relating to communications between the | ||||||
15 | licensee or applicant and the examining physician. The | ||||||
16 | examining physicians shall be specifically designated by the | ||||||
17 | Board or Department. The individual to be examined may have, at | ||||||
18 | his or her own expense, another physician of his or her choice | ||||||
19 | present during all aspects of this examination. Failure of an | ||||||
20 | individual to submit to a mental or physical examination, when | ||||||
21 | directed, shall be grounds for suspension of his or her license | ||||||
22 | until the individual submits to the examination if the | ||||||
23 | Department finds, after notice and hearing, that the refusal to | ||||||
24 | submit to the examination was without reasonable cause. | ||||||
25 | If the Department or Board finds an individual unable to | ||||||
26 | practice because of the reasons set forth in this Section, the |
| |||||||
| |||||||
1 | Department or Board may require that individual to submit to | ||||||
2 | care, counseling, or treatment by physicians approved or | ||||||
3 | designated by the Department or Board, as a condition, term, or | ||||||
4 | restriction for continued, reinstated, or renewed licensure to | ||||||
5 | practice; or, in lieu of care, counseling, or treatment, the | ||||||
6 | Department may file, or the Board may recommend to the | ||||||
7 | Department to file, a complaint to immediately suspend, revoke, | ||||||
8 | or otherwise discipline the license of the individual. An | ||||||
9 | individual whose license was granted, continued, reinstated, | ||||||
10 | renewed, disciplined or supervised subject to such terms, | ||||||
11 | conditions, or restrictions, and who fails to comply with such | ||||||
12 | terms, conditions, or restrictions, shall be referred to the | ||||||
13 | Secretary for a determination as to whether the individual | ||||||
14 | shall have his or her license suspended immediately, pending a | ||||||
15 | hearing by the Department. | ||||||
16 | In instances in which the Secretary immediately suspends a | ||||||
17 | person's license under this Section, a hearing on that person's | ||||||
18 | license must be convened by the Department within 30 days after | ||||||
19 | the suspension and completed without appreciable delay. The | ||||||
20 | Department and Board shall have the authority to review the | ||||||
21 | subject individual's record of treatment and counseling | ||||||
22 | regarding the impairment to the extent permitted by applicable | ||||||
23 | federal statutes and regulations safeguarding the | ||||||
24 | confidentiality of medical records. | ||||||
25 | An individual licensed under this Act and affected under | ||||||
26 | this Section shall be afforded an opportunity to demonstrate to |
| |||||||
| |||||||
1 | the Department or Board that he or she can resume practice in | ||||||
2 | compliance with acceptable and prevailing standards under the | ||||||
3 | provisions of his or her license. | ||||||
4 | (Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14; | ||||||
5 | 99-227, eff. 8-3-15.)
| ||||||
6 | Section 17-100. The Code of Criminal Procedure of 1963 is | ||||||
7 | amended by changing Section 110-17 as follows:
| ||||||
8 | (725 ILCS 5/110-17) (from Ch. 38, par. 110-17)
| ||||||
9 | Sec. 110-17. Unclaimed Bail Deposits. Notwithstanding the
| ||||||
10 | provisions of the Revised Uniform Disposition of Unclaimed | ||||||
11 | Property Act, any sum
of money deposited by any person to | ||||||
12 | secure his release from custody which
remains unclaimed by the | ||||||
13 | person entitled to its return for 3
years after the conditions | ||||||
14 | of the bail bond have been performed
and the accused has been | ||||||
15 | discharged from all obligations in the
cause shall be presumed | ||||||
16 | to be abandoned.
| ||||||
17 | (a) The clerk of the circuit court, as soon thereafter as
| ||||||
18 | practicable, shall cause notice to be published once, in | ||||||
19 | English, in a
newspaper or newspapers of general circulation in | ||||||
20 | the county wherein the
deposit of bond was received.
| ||||||
21 | (b) The published notice shall be entitled "Notice of | ||||||
22 | Persons
Appearing to be Owners of Abandoned Property" and shall | ||||||
23 | contain:
| ||||||
24 | (1) The names, in alphabetical order, of persons to |
| |||||||
| |||||||
1 | whom the notice
is directed.
| ||||||
2 | (2) A statement that information concerning the amount | ||||||
3 | of the property
may be obtained by any persons possessing | ||||||
4 | an interest in the property by
making an inquiry at the | ||||||
5 | office of the clerk of the circuit court at a
location | ||||||
6 | designated by him.
| ||||||
7 | (3) A statement that if proof of claim is not presented | ||||||
8 | by the owner to
the clerk of the circuit court and if the | ||||||
9 | owner's right to receive the
property is not established to | ||||||
10 | the satisfaction of the clerk of the court
within 65 days | ||||||
11 | from the date of the published notice, the abandoned
| ||||||
12 | property will be placed in the custody of the treasurer of | ||||||
13 | the county, not
later than 85 days after such publication, | ||||||
14 | to whom all further claims must
thereafter be directed. If | ||||||
15 | the claim is established as aforesaid and after
deducting | ||||||
16 | an amount not to exceed $20 to cover the cost of notice
| ||||||
17 | publication and related clerical expenses, the clerk of the | ||||||
18 | court shall
make payment to the person entitled thereto.
| ||||||
19 | (4) The clerk of the circuit court is not required to | ||||||
20 | publish in such
notice any items of less than $100 unless | ||||||
21 | he deems such publication in the
public interest.
| ||||||
22 | (c) Any clerk of the circuit court who has caused notice to | ||||||
23 | be published
as provided by this Section shall, within 20 days | ||||||
24 | after the time specified
in this Section for claiming the | ||||||
25 | property from the clerk of the court, pay
or deliver to the | ||||||
26 | treasurer of the county having jurisdiction of the
offense, |
| |||||||
| |||||||
1 | whether the bond was taken there or any other county, all sums
| ||||||
2 | deposited as specified in this section less such amounts as may | ||||||
3 | have been
returned to the persons whose rights to receive the | ||||||
4 | sums deposited have
been established to the satisfaction of the | ||||||
5 | clerk of the circuit court.
Any clerk of the circuit court who | ||||||
6 | transfers such sums to the county
treasury including sums | ||||||
7 | deposited by persons whose names are not required
to be set | ||||||
8 | forth in the published notice aforesaid, is relieved of all
| ||||||
9 | liability for such sums as have been transferred as unclaimed | ||||||
10 | bail deposits
or any claim which then exists or which | ||||||
11 | thereafter may arise or be made in
respect to such sums.
| ||||||
12 | (d) The treasurer of the county shall keep just and true | ||||||
13 | accounts of all
moneys paid into the treasury, and if any | ||||||
14 | person appears within 5 years
after the deposit of moneys by | ||||||
15 | the clerk of the circuit court and claims
any money paid into | ||||||
16 | the treasury, he shall file a claim therefor on the
form | ||||||
17 | prescribed by the treasurer of the county who shall consider | ||||||
18 | any claim
filed under this Act and who may, in his discretion, | ||||||
19 | hold a hearing and
receive evidence concerning it. The | ||||||
20 | treasurer of the county shall prepare
a finding and the | ||||||
21 | decision in writing on each hearing, stating the substance
of | ||||||
22 | any evidence heard by him, his findings of fact in respect | ||||||
23 | thereto, and
the reasons for his decision. The decision shall | ||||||
24 | be a public record.
| ||||||
25 | (e) All claims which are not filed within the 5 year period | ||||||
26 | shall
be forever barred.
|
| |||||||
| |||||||
1 | (Source: P.A. 85-768.)
| ||||||
2 | Section 17-105. The Probate Act of 1975 is amended by | ||||||
3 | changing Sections 2-1 and 2-2 as follows:
| ||||||
4 | (755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
| ||||||
5 | Sec. 2-1. Rules of descent and distribution. The intestate | ||||||
6 | real and
personal estate of a resident decedent and the | ||||||
7 | intestate real estate in
this State of a nonresident decedent, | ||||||
8 | after all just claims against his
estate are fully paid, | ||||||
9 | descends and shall be distributed as follows:
| ||||||
10 | (a) If there is a surviving spouse and also a descendant of | ||||||
11 | the
decedent: 1/2 of the entire estate to the surviving spouse | ||||||
12 | and 1/2 to
the decedent's descendants per stirpes.
| ||||||
13 | (b) If there is no surviving spouse but a descendant of the
| ||||||
14 | decedent: the entire estate to the decedent's descendants per | ||||||
15 | stirpes.
| ||||||
16 | (c) If there is a surviving spouse but no descendant of the
| ||||||
17 | decedent: the entire estate to the surviving spouse.
| ||||||
18 | (d) If there is no surviving spouse or descendant but a | ||||||
19 | parent,
brother, sister or descendant of a brother or sister of | ||||||
20 | the decedent:
the entire estate to the parents, brothers and | ||||||
21 | sisters of the decedent
in equal parts, allowing to the | ||||||
22 | surviving parent if one is dead a double
portion and to the | ||||||
23 | descendants of a deceased brother or sister per
stirpes the | ||||||
24 | portion which the deceased brother or sister would have
taken |
| |||||||
| |||||||
1 | if living.
| ||||||
2 | (e) If there is no surviving spouse, descendant, parent, | ||||||
3 | brother,
sister or descendant of a brother or sister of the | ||||||
4 | decedent but a
grandparent or descendant of a grandparent of | ||||||
5 | the decedent: (1) 1/2 of
the entire estate to the decedent's | ||||||
6 | maternal grandparents in equal parts
or to the survivor of | ||||||
7 | them, or if there is none surviving, to their
descendants per | ||||||
8 | stirpes, and (2) 1/2 of the entire estate to the
decedent's | ||||||
9 | paternal grandparents in equal parts or to the survivor of
| ||||||
10 | them, or if there is none surviving, to their descendants per | ||||||
11 | stirpes.
If there is no surviving paternal grandparent or | ||||||
12 | descendant of a
paternal grandparent, but a maternal | ||||||
13 | grandparent or descendant of a
maternal grandparent of the | ||||||
14 | decedent: the entire estate to the
decedent's maternal | ||||||
15 | grandparents in equal parts or to the survivor of
them, or if | ||||||
16 | there is none surviving, to their descendants per stirpes.
If | ||||||
17 | there is no surviving maternal grandparent or descendant of a
| ||||||
18 | maternal grandparent, but a paternal grandparent or descendant | ||||||
19 | of a
paternal grandparent of the decedent: the entire estate to | ||||||
20 | the
decedent's paternal grandparents in equal parts or to the | ||||||
21 | survivor of
them, or if there is none surviving, to their | ||||||
22 | descendants per stirpes.
| ||||||
23 | (f) If there is no surviving spouse, descendant, parent, | ||||||
24 | brother,
sister, descendant of a brother or sister or | ||||||
25 | grandparent or descendant
of a grandparent of the decedent: (1) | ||||||
26 | 1/2 of the entire estate to the
decedent's maternal |
| |||||||
| |||||||
1 | great-grandparents in equal parts or to the survivor
of them, | ||||||
2 | or if there is none surviving, to their descendants per
| ||||||
3 | stirpes, and (2) 1/2 of the entire estate to the decedent's | ||||||
4 | paternal
great-grandparents in equal parts or to the survivor | ||||||
5 | of them, or if
there is none surviving, to their descendants | ||||||
6 | per stirpes. If there is
no surviving paternal | ||||||
7 | great-grandparent or descendant of a paternal
| ||||||
8 | great-grandparent, but a maternal great-grandparent or | ||||||
9 | descendant of a
maternal great-grandparent of the decedent: the | ||||||
10 | entire estate to the
decedent's maternal great-grandparents in | ||||||
11 | equal parts or to the survivor
of them, or if there is none | ||||||
12 | surviving, to their descendants per
stirpes. If there is no | ||||||
13 | surviving maternal great-grandparent or
descendant of a | ||||||
14 | maternal great-grandparent, but a paternal
great-grandparent | ||||||
15 | or descendant of a paternal great-grandparent of the
decedent: | ||||||
16 | the entire estate to the decedent's paternal
| ||||||
17 | great-grandparents in equal parts or to the survivor of them, | ||||||
18 | or if
there is none surviving, to their descendants per | ||||||
19 | stirpes.
| ||||||
20 | (g) If there is no surviving spouse, descendant, parent, | ||||||
21 | brother,
sister, descendant of a brother or sister, | ||||||
22 | grandparent, descendant of a
grandparent, great-grandparent or | ||||||
23 | descendant of a great-grandparent of
the decedent: the entire | ||||||
24 | estate in equal parts to the nearest kindred of
the decedent in | ||||||
25 | equal degree (computing by the rules of the civil law)
and | ||||||
26 | without representation.
|
| |||||||
| |||||||
1 | (h) If there is no surviving spouse and no known kindred of | ||||||
2 | the
decedent: the real estate escheats to the county in which | ||||||
3 | it is
located; the personal estate physically located within | ||||||
4 | this State and
the personal estate physically located or held | ||||||
5 | outside this State which
is the subject of ancillary | ||||||
6 | administration of an estate being
administered within this | ||||||
7 | State escheats to the county of which the
decedent was a | ||||||
8 | resident, or, if the decedent was not a resident of this
State, | ||||||
9 | to the county in which it is located; all other personal | ||||||
10 | property
of the decedent of every class and character, wherever | ||||||
11 | situate, or the
proceeds thereof, shall escheat to this State | ||||||
12 | and be delivered to the
State Treasurer
pursuant to the Revised | ||||||
13 | Uniform Disposition of Unclaimed Property Act.
| ||||||
14 | In no case is there any distinction between the kindred of | ||||||
15 | the whole
and the half blood.
| ||||||
16 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
17 | (755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
| ||||||
18 | Sec. 2-2. Children born out of wedlock. The intestate real | ||||||
19 | and personal estate of
a resident decedent who was a child born | ||||||
20 | out of wedlock at the time of death and the
intestate real | ||||||
21 | estate in this State of a nonresident decedent who was a child | ||||||
22 | born out of wedlock at the time of death, after all just claims | ||||||
23 | against his estate are
fully paid, descends and shall be | ||||||
24 | distributed as provided in Section 2-1,
subject to Section | ||||||
25 | 2-6.5 of this Act, if both parents are eligible parents. As
|
| |||||||
| |||||||
1 | used in this Section, "eligible parent" means a parent of the | ||||||
2 | decedent who,
during the decedent's lifetime, acknowledged the | ||||||
3 | decedent as the parent's
child, established a parental | ||||||
4 | relationship with the decedent, and supported the
decedent as | ||||||
5 | the parent's child. "Eligible parents" who are in arrears of in
| ||||||
6 | excess of one year's child support obligations shall not | ||||||
7 | receive any property
benefit or other interest of the decedent | ||||||
8 | unless and until a court of competent
jurisdiction makes a | ||||||
9 | determination as to the effect on the deceased of the
arrearage | ||||||
10 | and allows a reduced benefit. In no event shall the reduction | ||||||
11 | of
the benefit or other interest be less than the amount of | ||||||
12 | child support owed for
the support of the decedent at the time | ||||||
13 | of death. The court's considerations
shall include but are not | ||||||
14 | limited to the considerations in subsections (1)
through (3) of | ||||||
15 | Section 2-6.5 of this Act.
| ||||||
16 | If neither parent is an eligible parent, the intestate real
| ||||||
17 | and personal estate of a resident decedent who was a child born | ||||||
18 | out of wedlock at the time of
death and the intestate real | ||||||
19 | estate in this State of a nonresident decedent who
was a child | ||||||
20 | born out of wedlock at the time of death, after all just claims | ||||||
21 | against his or her
estate are fully paid, descends and shall be | ||||||
22 | distributed as provided in
Section 2-1, but the parents of the | ||||||
23 | decedent shall be treated as having
predeceased the decedent.
| ||||||
24 | If only one parent is an eligible parent, the intestate | ||||||
25 | real and personal
estate of a resident decedent who was a child | ||||||
26 | born out of wedlock at the time of death and the
intestate real |
| |||||||
| |||||||
1 | estate in this State of a nonresident decedent who was a child | ||||||
2 | born out of wedlock at the time of death, after all just claims | ||||||
3 | against his or her
estate are fully paid, subject to Section | ||||||
4 | 2-6.5 of this Act, descends and shall
be distributed as | ||||||
5 | follows:
| ||||||
6 | (a) If there is a surviving spouse and also a descendant of | ||||||
7 | the
decedent: 1/2 of the entire estate to the surviving spouse | ||||||
8 | and 1/2 to
the decedent's descendants per stirpes.
| ||||||
9 | (b) If there is no surviving spouse but a descendant of the
| ||||||
10 | decedent: the entire estate to the decedent's descendants per | ||||||
11 | stirpes.
| ||||||
12 | (c) If there is a surviving spouse but no descendant of the
| ||||||
13 | decedent: the entire estate to the surviving spouse.
| ||||||
14 | (d) If there is no surviving spouse or descendant but the | ||||||
15 | eligible parent or
a descendant of the eligible parent of the | ||||||
16 | decedent: the entire estate to the
eligible parent and the | ||||||
17 | eligible parent's descendants, allowing 1/2 to the
eligible | ||||||
18 | parent and 1/2 to the eligible parent's descendants per | ||||||
19 | stirpes.
| ||||||
20 | (e) If there is no surviving spouse, descendant, eligible | ||||||
21 | parent, or
descendant of the eligible parent of the decedent, | ||||||
22 | but a grandparent on the
eligible parent's side of the family | ||||||
23 | or descendant of such grandparent of the
decedent: the entire | ||||||
24 | estate to the decedent's grandparents on the eligible
parent's | ||||||
25 | side of the family in equal parts, or to the survivor of them, | ||||||
26 | or if
there is none surviving, to their descendants per |
| |||||||
| |||||||
1 | stirpes.
| ||||||
2 | (f) If there is no surviving spouse, descendant, eligible | ||||||
3 | parent, descendant
of the eligible parent, grandparent on the | ||||||
4 | eligible parent's side of the
family, or descendant of such | ||||||
5 | grandparent of the decedent: the entire estate
to the | ||||||
6 | decedent's great-grandparents on the eligible parent's side of | ||||||
7 | the
family in equal parts or to the survivor of them, or if | ||||||
8 | there is none
surviving, to their descendants per stirpes.
| ||||||
9 | (g) If there is no surviving spouse, descendant, eligible | ||||||
10 | parent, descendant
of the eligible parent, grandparent on the
| ||||||
11 | eligible parent's side of the family, descendant of such
| ||||||
12 | grandparent, great-grandparent on the eligible parent's side | ||||||
13 | of
the family, or descendant of such great-grandparent of the | ||||||
14 | decedent: the
entire estate in equal parts to the nearest | ||||||
15 | kindred of the eligible parent of
the decedent in equal degree | ||||||
16 | (computing by the rules of the civil law) and
without | ||||||
17 | representation.
| ||||||
18 | (h) If there is no surviving spouse, descendant, or | ||||||
19 | eligible parent of the
decedent and no known kindred of the | ||||||
20 | eligible parent of the decedent: the real
estate escheats to
| ||||||
21 | the county in which it is located; the personal estate | ||||||
22 | physically
located within this State and the personal estate | ||||||
23 | physically located or
held outside this State which is the | ||||||
24 | subject of ancillary administration
within this State escheats | ||||||
25 | to the county of which the decedent was a
resident or, if the | ||||||
26 | decedent was not a resident of this State, to the
county in |
| |||||||
| |||||||
1 | which it is located; all other personal property of the
| ||||||
2 | decedent of every class and character, wherever situate, or the | ||||||
3 | proceeds
thereof, shall escheat to this State and be delivered | ||||||
4 | to the State
Treasurer of this State pursuant to the Revised | ||||||
5 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
6 | For purposes of inheritance, the changes made by this | ||||||
7 | amendatory Act of
1998 apply to all decedents who die on or | ||||||
8 | after the effective date of this
amendatory Act of 1998. For | ||||||
9 | the purpose of determining the property rights of
any person | ||||||
10 | under any instrument, the changes made by this amendatory Act | ||||||
11 | of
1998 apply to all instruments executed on or after the | ||||||
12 | effective date of this
amendatory Act of 1998.
| ||||||
13 | A child born out of wedlock is heir of his mother and of | ||||||
14 | any maternal
ancestor and of any person from whom his mother | ||||||
15 | might have inherited, if
living; and the descendants of a | ||||||
16 | person who was a child born out of wedlock shall represent
such | ||||||
17 | person and take by descent any estate which the parent would | ||||||
18 | have
taken, if living. If a decedent has acknowledged paternity | ||||||
19 | of a child born out of wedlock or if during his lifetime or | ||||||
20 | after his death a
decedent has been adjudged to be the father | ||||||
21 | of a child born out of wedlock,
that person is heir of his | ||||||
22 | father and of any paternal ancestor and of
any person from whom | ||||||
23 | his father might have inherited, if living; and
the descendants | ||||||
24 | of a person who was a child born out of wedlock shall represent | ||||||
25 | that person
and take by descent any estate which the parent | ||||||
26 | would have taken, if
living. If during his lifetime the |
| |||||||
| |||||||
1 | decedent was adjudged to be the
father of a child born out of | ||||||
2 | wedlock by a court of competent jurisdiction,
an authenticated | ||||||
3 | copy of the judgment is sufficient proof of the
paternity; but | ||||||
4 | in all other cases paternity must be proved by clear and
| ||||||
5 | convincing evidence. A person who was a child born out of | ||||||
6 | wedlock whose parents
intermarry and who is acknowledged by the | ||||||
7 | father as the father's child
is a lawful child of the father.
| ||||||
8 | After a child born out of wedlock is adopted, that person's | ||||||
9 | relationship to his or
her adopting and natural parents shall | ||||||
10 | be governed by Section 2-4 of this
Act. For purposes of | ||||||
11 | inheritance, the changes made by this amendatory Act of
1997 | ||||||
12 | apply to all decedents who die on or after January 1, 1998. For | ||||||
13 | the
purpose of determining the property rights of any person | ||||||
14 | under any instrument,
the changes made by this amendatory Act | ||||||
15 | of 1997 apply to all instruments
executed on or after January | ||||||
16 | 1, 1998.
| ||||||
17 | (Source: P.A. 94-229, eff. 1-1-06.)
| ||||||
18 | Section 17-110. The Sale of Unclaimed Property Act is | ||||||
19 | amended by changing Section 3 as follows:
| ||||||
20 | (770 ILCS 90/3) (from Ch. 141, par. 3)
| ||||||
21 | Sec. 3.
All persons other than common carriers having a | ||||||
22 | lien on personal
property, by virtue of the Innkeepers Lien Act | ||||||
23 | or for more than $2,000 by
virtue of the Labor and Storage Lien | ||||||
24 | Act may enforce the lien by a sale of
the property, on giving |
| |||||||
| |||||||
1 | to the owner thereof, if he and his residence be
known to the | ||||||
2 | person having such lien, 30 days' notice by certified mail, in
| ||||||
3 | writing of the time and place of such sale, and if the owner or | ||||||
4 | his place
of residence be unknown to the person having such | ||||||
5 | lien, then upon his
filing his affidavit to that effect with | ||||||
6 | the clerk of the circuit court in
the county where such | ||||||
7 | property is situated; notice of the sale may be given
by | ||||||
8 | publishing the same once in each week for 3 successive weeks in | ||||||
9 | some
newspaper of general circulation published in the county, | ||||||
10 | and out of the
proceeds of the sale all costs and charges for | ||||||
11 | advertising and making the
same, and the amount of the lien | ||||||
12 | shall be paid, and the surplus, if any,
shall be paid to the | ||||||
13 | owner of the property or, if not claimed by said
owner, such | ||||||
14 | surplus, if any, shall be disposed under the Revised Uniform | ||||||
15 | Disposition
of Unclaimed Property Act. All sales pursuant to | ||||||
16 | this Section must be
public and conducted in a commercially | ||||||
17 | reasonable manner so as to maximize
the net proceeds of the | ||||||
18 | sale. Conformity to the requirements of this Act
shall be a | ||||||
19 | perpetual bar to any action against such lienor by any person
| ||||||
20 | for the recovery of such chattels or the value thereof or any | ||||||
21 | damages
growing out of the failure of such person to receive | ||||||
22 | such chattels.
| ||||||
23 | (Source: P.A. 87-206.)
| ||||||
24 | Section 17-115. The Business Corporation Act of 1983 is | ||||||
25 | amended by changing Section 12.70 as follows:
|
| |||||||
| |||||||
1 | (805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
| ||||||
2 | Sec. 12.70. Deposit of amount due certain shareholders. | ||||||
3 | Upon the distribution of the assets of a corporation among its
| ||||||
4 | shareholders, the distributive portion to which a shareholder | ||||||
5 | would be
entitled who is unknown or cannot can not be found, or | ||||||
6 | who is under disability and
there is no person legally | ||||||
7 | competent to receive such distributive portion,
shall be | ||||||
8 | presumed abandoned and reported and delivered to the State
| ||||||
9 | Treasurer and become subject to the provision of the Revised | ||||||
10 | Uniform
Disposition of Unclaimed Property Act. In the event | ||||||
11 | such distribution is be
made other than in cash, such | ||||||
12 | distributive portion of the assets shall be
reduced to cash | ||||||
13 | before being so reported and delivered.
| ||||||
14 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
15 | Section 17-120. The General Not For Profit Corporation Act | ||||||
16 | of 1986 is amended by changing Section 112.70 as follows:
| ||||||
17 | (805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
| ||||||
18 | Sec. 112.70. Deposit of amount due. Upon the
distribution | ||||||
19 | of the assets of a corporation, the
distributive portion to | ||||||
20 | which a person would be entitled who
is unknown or cannot be | ||||||
21 | found, or who is under disability
and there is no person | ||||||
22 | legally competent to receive such
distributive portion, shall | ||||||
23 | be presumed abandoned and
reported and delivered to the State |
| |||||||
| |||||||
1 | Treasurer and become subject to the Revised
provision of the | ||||||
2 | Uniform Disposition of Unclaimed Property Act. In the event
| ||||||
3 | such distribution is be made other than in cash, such
| ||||||
4 | distributive portion of the assets shall be reduced to cash
| ||||||
5 | before being so reported and delivered.
| ||||||
6 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
7 | ARTICLE 20. AMENDATORY PROVISIONS; INCOME TAX | ||||||
8 | Section 15-5. The Illinois Income Tax Act is amended by | ||||||
9 | changing Sections 201, 202.5, 203, 204, 208, 212, 901, and 1501 | ||||||
10 | and by adding Section 225 as follows:
| ||||||
11 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
12 | Sec. 201. Tax Imposed. | ||||||
13 | (a) In general. A tax measured by net income is hereby | ||||||
14 | imposed on every
individual, corporation, trust and estate for | ||||||
15 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
16 | of earning or receiving income in or
as a resident of this | ||||||
17 | State. Such tax shall be in addition to all other
occupation or | ||||||
18 | privilege taxes imposed by this State or by any municipal
| ||||||
19 | corporation or political subdivision thereof. | ||||||
20 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
21 | Section shall be
determined as follows, except as adjusted by | ||||||
22 | subsection (d-1): | ||||||
23 | (1) In the case of an individual, trust or estate, for |
| |||||||
| |||||||
1 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
2 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
3 | year. | ||||||
4 | (2) In the case of an individual, trust or estate, for | ||||||
5 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
6 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
7 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
8 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
9 | 3% of the
taxpayer's net income for the period after June | ||||||
10 | 30, 1989, as calculated
under Section 202.3. | ||||||
11 | (3) In the case of an individual, trust or estate, for | ||||||
12 | taxable years
beginning after June 30, 1989, and ending | ||||||
13 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
14 | taxpayer's net
income for the taxable year. | ||||||
15 | (4) In the case of an individual, trust, or estate, for | ||||||
16 | taxable years beginning prior to January 1, 2011, and | ||||||
17 | ending after December 31, 2010, an amount equal to the sum | ||||||
18 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
19 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
20 | (ii) 5% of the taxpayer's net income for the period after | ||||||
21 | December 31, 2010, as calculated under Section 202.5. | ||||||
22 | (5) In the case of an individual, trust, or estate, for | ||||||
23 | taxable years beginning on or after January 1, 2011, and | ||||||
24 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
25 | the taxpayer's net income for the taxable year. | ||||||
26 | (5.1) In the case of an individual, trust, or estate, |
| |||||||
| |||||||
1 | for taxable years beginning prior to January 1, 2015, and | ||||||
2 | ending after December 31, 2014, an amount equal to the sum | ||||||
3 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
4 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
5 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
6 | after December 31, 2014, as calculated under Section 202.5. | ||||||
7 | (5.2) In the case of an individual, trust, or estate, | ||||||
8 | for taxable years beginning on or after January 1, 2015, | ||||||
9 | and ending prior to July 1, 2017 January 1, 2025 , an amount | ||||||
10 | equal to 3.75% of the taxpayer's net income for the taxable | ||||||
11 | year. | ||||||
12 | (5.3) In the case of an individual, trust, or estate, | ||||||
13 | for taxable years beginning prior to July 1, 2017 January | ||||||
14 | 1, 2025 , and ending after June 30, 2017 December 31, 2024 , | ||||||
15 | an amount equal to the sum of (i) 3.75% of the taxpayer's | ||||||
16 | net income for the period prior to July 1, 2017 January 1, | ||||||
17 | 2025 , as calculated under Section 202.5, and (ii) 4.95% | ||||||
18 | 3.25% of the taxpayer's net income for the period after | ||||||
19 | June 30, 2017 December 31, 2024 , as calculated under | ||||||
20 | Section 202.5. | ||||||
21 | (5.4) In the case of an individual, trust, or estate, | ||||||
22 | for taxable years beginning on or after July 1, 2017 | ||||||
23 | January 1, 2025 , an amount equal to 4.95% 3.25% of the | ||||||
24 | taxpayer's net income for the taxable year. | ||||||
25 | (6) In the case of a corporation, for taxable years
| ||||||
26 | ending prior to July 1, 1989, an amount equal to 4% of the
|
| |||||||
| |||||||
1 | taxpayer's net income for the taxable year. | ||||||
2 | (7) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
4 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
5 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
6 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
7 | taxpayer's net
income for the period after June 30, 1989, | ||||||
8 | as calculated under Section
202.3. | ||||||
9 | (8) In the case of a corporation, for taxable years | ||||||
10 | beginning after
June 30, 1989, and ending prior to January | ||||||
11 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
12 | income for the
taxable year. | ||||||
13 | (9) In the case of a corporation, for taxable years | ||||||
14 | beginning prior to January 1, 2011, and ending after | ||||||
15 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
16 | of the taxpayer's net income for the period prior to | ||||||
17 | January 1, 2011, as calculated under Section 202.5, and | ||||||
18 | (ii) 7% of the taxpayer's net income for the period after | ||||||
19 | December 31, 2010, as calculated under Section 202.5. | ||||||
20 | (10) In the case of a corporation, for taxable years | ||||||
21 | beginning on or after January 1, 2011, and ending prior to | ||||||
22 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
23 | net income for the taxable year. | ||||||
24 | (11) In the case of a corporation, for taxable years | ||||||
25 | beginning prior to January 1, 2015, and ending after | ||||||
26 | December 31, 2014, an amount equal to the sum of (i) 7% of |
| |||||||
| |||||||
1 | the taxpayer's net income for the period prior to January | ||||||
2 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
3 | of the taxpayer's net income for the period after December | ||||||
4 | 31, 2014, as calculated under Section 202.5. | ||||||
5 | (12) In the case of a corporation, for taxable years | ||||||
6 | beginning on or after January 1, 2015, and ending prior to | ||||||
7 | July 1, 2017 January 1, 2025 , an amount equal to 5.25% of | ||||||
8 | the taxpayer's net income for the taxable year. | ||||||
9 | (13) In the case of a corporation, for taxable years | ||||||
10 | beginning prior to July 1, 2017 January 1, 2025 , and ending | ||||||
11 | after June 30, 2017 December 31, 2024 , an amount equal to | ||||||
12 | the sum of (i) 5.25% of the taxpayer's net income for the | ||||||
13 | period prior to July 1, 2017 January 1, 2025 , as calculated | ||||||
14 | under Section 202.5, and (ii) 7% 4.8% of the taxpayer's net | ||||||
15 | income for the period after June 30, 2017 December 31, | ||||||
16 | 2024 , as calculated under Section 202.5. | ||||||
17 | (14) In the case of a corporation, for taxable years | ||||||
18 | beginning on or after July 1, 2017 January 1, 2025 , an | ||||||
19 | amount equal to 7% 4.8% of the taxpayer's net income for | ||||||
20 | the taxable year. | ||||||
21 | The rates under this subsection (b) are subject to the | ||||||
22 | provisions of Section 201.5. | ||||||
23 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
24 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
25 | income
tax, there is also hereby imposed the Personal Property | ||||||
26 | Tax Replacement
Income Tax measured by net income on every |
| |||||||
| |||||||
1 | corporation (including Subchapter
S corporations), partnership | ||||||
2 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
3 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
4 | income in or as a resident of this State. The Personal Property
| ||||||
5 | Tax Replacement Income Tax shall be in addition to the income | ||||||
6 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
7 | addition to all other
occupation or privilege taxes imposed by | ||||||
8 | this State or by any municipal
corporation or political | ||||||
9 | subdivision thereof. | ||||||
10 | (d) Additional Personal Property Tax Replacement Income | ||||||
11 | Tax Rates.
The personal property tax replacement income tax | ||||||
12 | imposed by this subsection
and subsection (c) of this Section | ||||||
13 | in the case of a corporation, other
than a Subchapter S | ||||||
14 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
15 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
16 | income for the taxable year, except that
beginning on January | ||||||
17 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
18 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
19 | partnership, trust or a Subchapter S corporation shall be an | ||||||
20 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
21 | for the taxable year. | ||||||
22 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
23 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
24 | Illinois Insurance Code,
whose state or country of domicile | ||||||
25 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
26 | (excluding any insurer
whose premiums from reinsurance assumed |
| |||||||
| |||||||
1 | are 50% or more of its total insurance
premiums as determined | ||||||
2 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
3 | that for purposes of this determination premiums from | ||||||
4 | reinsurance do
not include premiums from inter-affiliate | ||||||
5 | reinsurance arrangements),
beginning with taxable years ending | ||||||
6 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
7 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
8 | increased) to the rate at which the total amount of tax imposed | ||||||
9 | under this Act,
net of all credits allowed under this Act, | ||||||
10 | shall equal (i) the total amount of
tax that would be imposed | ||||||
11 | on the foreign insurer's net income allocable to
Illinois for | ||||||
12 | the taxable year by such foreign insurer's state or country of
| ||||||
13 | domicile if that net income were subject to all income taxes | ||||||
14 | and taxes
measured by net income imposed by such foreign | ||||||
15 | insurer's state or country of
domicile, net of all credits | ||||||
16 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
17 | income by the foreign insurer's state of domicile.
For the | ||||||
18 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
19 | a
mutual insurer under common management. | ||||||
20 | (1) For the purposes of subsection (d-1), in no event | ||||||
21 | shall the sum of the
rates of tax imposed by subsections | ||||||
22 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
23 | (A) the total amount of tax imposed on such foreign | ||||||
24 | insurer under
this Act for a taxable year, net of all | ||||||
25 | credits allowed under this Act, plus | ||||||
26 | (B) the privilege tax imposed by Section 409 of the |
| |||||||
| |||||||
1 | Illinois Insurance
Code, the fire insurance company | ||||||
2 | tax imposed by Section 12 of the Fire
Investigation | ||||||
3 | Act, and the fire department taxes imposed under | ||||||
4 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
5 | equals 1.25% for taxable years ending prior to December 31, | ||||||
6 | 2003, or
1.75% for taxable years ending on or after | ||||||
7 | December 31, 2003, of the net
taxable premiums written for | ||||||
8 | the taxable year,
as described by subsection (1) of Section | ||||||
9 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
10 | no event increase the rates imposed under subsections
(b) | ||||||
11 | and (d). | ||||||
12 | (2) Any reduction in the rates of tax imposed by this | ||||||
13 | subsection shall be
applied first against the rates imposed | ||||||
14 | by subsection (b) and only after the
tax imposed by | ||||||
15 | subsection (a) net of all credits allowed under this | ||||||
16 | Section
other than the credit allowed under subsection (i) | ||||||
17 | has been reduced to zero,
against the rates imposed by | ||||||
18 | subsection (d). | ||||||
19 | This subsection (d-1) is exempt from the provisions of | ||||||
20 | Section 250. | ||||||
21 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
22 | against the Personal Property Tax Replacement Income Tax for
| ||||||
23 | investment in qualified property. | ||||||
24 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
25 | of
the basis of qualified property placed in service during | ||||||
26 | the taxable year,
provided such property is placed in |
| |||||||
| |||||||
1 | service on or after
July 1, 1984. There shall be allowed an | ||||||
2 | additional credit equal
to .5% of the basis of qualified | ||||||
3 | property placed in service during the
taxable year, | ||||||
4 | provided such property is placed in service on or
after | ||||||
5 | July 1, 1986, and the taxpayer's base employment
within | ||||||
6 | Illinois has increased by 1% or more over the preceding | ||||||
7 | year as
determined by the taxpayer's employment records | ||||||
8 | filed with the
Illinois Department of Employment Security. | ||||||
9 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
10 | met the 1% growth in base employment for
the first year in | ||||||
11 | which they file employment records with the Illinois
| ||||||
12 | Department of Employment Security. The provisions added to | ||||||
13 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
14 | Act 87-895) shall be
construed as declaratory of existing | ||||||
15 | law and not as a new enactment. If,
in any year, the | ||||||
16 | increase in base employment within Illinois over the
| ||||||
17 | preceding year is less than 1%, the additional credit shall | ||||||
18 | be limited to that
percentage times a fraction, the | ||||||
19 | numerator of which is .5% and the denominator
of which is | ||||||
20 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
21 | not be
allowed to the extent that it would reduce a | ||||||
22 | taxpayer's liability in any tax
year below zero, nor may | ||||||
23 | any credit for qualified property be allowed for any
year | ||||||
24 | other than the year in which the property was placed in | ||||||
25 | service in
Illinois. For tax years ending on or after | ||||||
26 | December 31, 1987, and on or
before December 31, 1988, the |
| |||||||
| |||||||
1 | credit shall be allowed for the tax year in
which the | ||||||
2 | property is placed in service, or, if the amount of the | ||||||
3 | credit
exceeds the tax liability for that year, whether it | ||||||
4 | exceeds the original
liability or the liability as later | ||||||
5 | amended, such excess may be carried
forward and applied to | ||||||
6 | the tax liability of the 5 taxable years following
the | ||||||
7 | excess credit years if the taxpayer (i) makes investments | ||||||
8 | which cause
the creation of a minimum of 2,000 full-time | ||||||
9 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
10 | enterprise zone established pursuant to the Illinois
| ||||||
11 | Enterprise Zone Act and (iii) is certified by the | ||||||
12 | Department of Commerce
and Community Affairs (now | ||||||
13 | Department of Commerce and Economic Opportunity) as | ||||||
14 | complying with the requirements specified in
clause (i) and | ||||||
15 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
16 | Community Affairs (now Department of Commerce and Economic | ||||||
17 | Opportunity) shall notify the Department of Revenue of all | ||||||
18 | such
certifications immediately. For tax years ending | ||||||
19 | after December 31, 1988,
the credit shall be allowed for | ||||||
20 | the tax year in which the property is
placed in service, | ||||||
21 | or, if the amount of the credit exceeds the tax
liability | ||||||
22 | for that year, whether it exceeds the original liability or | ||||||
23 | the
liability as later amended, such excess may be carried | ||||||
24 | forward and applied
to the tax liability of the 5 taxable | ||||||
25 | years following the excess credit
years. The credit shall | ||||||
26 | be applied to the earliest year for which there is
a |
| |||||||
| |||||||
1 | liability. If there is credit from more than one tax year | ||||||
2 | that is
available to offset a liability, earlier credit | ||||||
3 | shall be applied first. | ||||||
4 | (2) The term "qualified property" means property | ||||||
5 | which: | ||||||
6 | (A) is tangible, whether new or used, including | ||||||
7 | buildings and structural
components of buildings and | ||||||
8 | signs that are real property, but not including
land or | ||||||
9 | improvements to real property that are not a structural | ||||||
10 | component of a
building such as landscaping, sewer | ||||||
11 | lines, local access roads, fencing, parking
lots, and | ||||||
12 | other appurtenances; | ||||||
13 | (B) is depreciable pursuant to Section 167 of the | ||||||
14 | Internal Revenue Code,
except that "3-year property" | ||||||
15 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
16 | eligible for the credit provided by this subsection | ||||||
17 | (e); | ||||||
18 | (C) is acquired by purchase as defined in Section | ||||||
19 | 179(d) of
the Internal Revenue Code; | ||||||
20 | (D) is used in Illinois by a taxpayer who is | ||||||
21 | primarily engaged in
manufacturing, or in mining coal | ||||||
22 | or fluorite, or in retailing, or was placed in service | ||||||
23 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
24 | Zone established pursuant to the River Edge | ||||||
25 | Redevelopment Zone Act; and | ||||||
26 | (E) has not previously been used in Illinois in |
| |||||||
| |||||||
1 | such a manner and by
such a person as would qualify for | ||||||
2 | the credit provided by this subsection
(e) or | ||||||
3 | subsection (f). | ||||||
4 | (3) For purposes of this subsection (e), | ||||||
5 | "manufacturing" means
the material staging and production | ||||||
6 | of tangible personal property by
procedures commonly | ||||||
7 | regarded as manufacturing, processing, fabrication, or
| ||||||
8 | assembling which changes some existing material into new | ||||||
9 | shapes, new
qualities, or new combinations. For purposes of | ||||||
10 | this subsection
(e) the term "mining" shall have the same | ||||||
11 | meaning as the term "mining" in
Section 613(c) of the | ||||||
12 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
13 | the term "retailing" means the sale of tangible personal | ||||||
14 | property for use or consumption and not for resale, or
| ||||||
15 | services rendered in conjunction with the sale of tangible | ||||||
16 | personal property for use or consumption and not for | ||||||
17 | resale. For purposes of this subsection (e), "tangible | ||||||
18 | personal property" has the same meaning as when that term | ||||||
19 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
20 | taxable years ending after December 31, 2008, does not | ||||||
21 | include the generation, transmission, or distribution of | ||||||
22 | electricity. | ||||||
23 | (4) The basis of qualified property shall be the basis
| ||||||
24 | used to compute the depreciation deduction for federal | ||||||
25 | income tax purposes. | ||||||
26 | (5) If the basis of the property for federal income tax |
| |||||||
| |||||||
1 | depreciation
purposes is increased after it has been placed | ||||||
2 | in service in Illinois by
the taxpayer, the amount of such | ||||||
3 | increase shall be deemed property placed
in service on the | ||||||
4 | date of such increase in basis. | ||||||
5 | (6) The term "placed in service" shall have the same
| ||||||
6 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
7 | (7) If during any taxable year, any property ceases to
| ||||||
8 | be qualified property in the hands of the taxpayer within | ||||||
9 | 48 months after
being placed in service, or the situs of | ||||||
10 | any qualified property is
moved outside Illinois within 48 | ||||||
11 | months after being placed in service, the
Personal Property | ||||||
12 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
13 | increased. Such increase shall be determined by (i) | ||||||
14 | recomputing the
investment credit which would have been | ||||||
15 | allowed for the year in which
credit for such property was | ||||||
16 | originally allowed by eliminating such
property from such | ||||||
17 | computation and, (ii) subtracting such recomputed credit
| ||||||
18 | from the amount of credit previously allowed. For the | ||||||
19 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
20 | qualified property resulting
from a redetermination of the | ||||||
21 | purchase price shall be deemed a disposition
of qualified | ||||||
22 | property to the extent of such reduction. | ||||||
23 | (8) Unless the investment credit is extended by law, | ||||||
24 | the
basis of qualified property shall not include costs | ||||||
25 | incurred after
December 31, 2018, except for costs incurred | ||||||
26 | pursuant to a binding
contract entered into on or before |
| |||||||
| |||||||
1 | December 31, 2018. | ||||||
2 | (9) Each taxable year ending before December 31, 2000, | ||||||
3 | a partnership may
elect to pass through to its
partners the | ||||||
4 | credits to which the partnership is entitled under this | ||||||
5 | subsection
(e) for the taxable year. A partner may use the | ||||||
6 | credit allocated to him or her
under this paragraph only | ||||||
7 | against the tax imposed in subsections (c) and (d) of
this | ||||||
8 | Section. If the partnership makes that election, those | ||||||
9 | credits shall be
allocated among the partners in the | ||||||
10 | partnership in accordance with the rules
set forth in | ||||||
11 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
12 | promulgated under that Section, and the allocated amount of | ||||||
13 | the credits shall
be allowed to the partners for that | ||||||
14 | taxable year. The partnership shall make
this election on | ||||||
15 | its Personal Property Tax Replacement Income Tax return for
| ||||||
16 | that taxable year. The election to pass through the credits | ||||||
17 | shall be
irrevocable. | ||||||
18 | For taxable years ending on or after December 31, 2000, | ||||||
19 | a
partner that qualifies its
partnership for a subtraction | ||||||
20 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
21 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
22 | S
corporation for a subtraction under subparagraph (S) of | ||||||
23 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
24 | allowed a credit under this subsection
(e) equal to its | ||||||
25 | share of the credit earned under this subsection (e) during
| ||||||
26 | the taxable year by the partnership or Subchapter S |
| |||||||
| |||||||
1 | corporation, determined in
accordance with the | ||||||
2 | determination of income and distributive share of
income | ||||||
3 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
4 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
5 | of Section 250. | ||||||
6 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
7 | Redevelopment Zone. | ||||||
8 | (1) A taxpayer shall be allowed a credit against the | ||||||
9 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
10 | investment in qualified
property which is placed in service | ||||||
11 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
12 | Enterprise Zone Act or, for property placed in service on | ||||||
13 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
14 | established pursuant to the River Edge Redevelopment Zone | ||||||
15 | Act. For partners, shareholders
of Subchapter S | ||||||
16 | corporations, and owners of limited liability companies,
| ||||||
17 | if the liability company is treated as a partnership for | ||||||
18 | purposes of
federal and State income taxation, there shall | ||||||
19 | be allowed a credit under
this subsection (f) to be | ||||||
20 | determined in accordance with the determination
of income | ||||||
21 | and distributive share of income under Sections 702 and 704 | ||||||
22 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
23 | shall be .5% of the
basis for such property. The credit | ||||||
24 | shall be available only in the taxable
year in which the | ||||||
25 | property is placed in service in the Enterprise Zone or | ||||||
26 | River Edge Redevelopment Zone and
shall not be allowed to |
| |||||||
| |||||||
1 | the extent that it would reduce a taxpayer's
liability for | ||||||
2 | the tax imposed by subsections (a) and (b) of this Section | ||||||
3 | to
below zero. For tax years ending on or after December | ||||||
4 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
5 | which the property is placed in
service, or, if the amount | ||||||
6 | of the credit exceeds the tax liability for that
year, | ||||||
7 | whether it exceeds the original liability or the liability | ||||||
8 | as later
amended, such excess may be carried forward and | ||||||
9 | applied to the tax
liability of the 5 taxable years | ||||||
10 | following the excess credit year.
The credit shall be | ||||||
11 | applied to the earliest year for which there is a
| ||||||
12 | liability. If there is credit from more than one tax year | ||||||
13 | that is available
to offset a liability, the credit | ||||||
14 | accruing first in time shall be applied
first. | ||||||
15 | (2) The term qualified property means property which: | ||||||
16 | (A) is tangible, whether new or used, including | ||||||
17 | buildings and
structural components of buildings; | ||||||
18 | (B) is depreciable pursuant to Section 167 of the | ||||||
19 | Internal Revenue
Code, except that "3-year property" | ||||||
20 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
21 | eligible for the credit provided by this subsection | ||||||
22 | (f); | ||||||
23 | (C) is acquired by purchase as defined in Section | ||||||
24 | 179(d) of
the Internal Revenue Code; | ||||||
25 | (D) is used in the Enterprise Zone or River Edge | ||||||
26 | Redevelopment Zone by the taxpayer; and |
| |||||||
| |||||||
1 | (E) has not been previously used in Illinois in | ||||||
2 | such a manner and by
such a person as would qualify for | ||||||
3 | the credit provided by this subsection
(f) or | ||||||
4 | subsection (e). | ||||||
5 | (3) The basis of qualified property shall be the basis | ||||||
6 | used to compute
the depreciation deduction for federal | ||||||
7 | income tax purposes. | ||||||
8 | (4) If the basis of the property for federal income tax | ||||||
9 | depreciation
purposes is increased after it has been placed | ||||||
10 | in service in the Enterprise
Zone or River Edge | ||||||
11 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
12 | increase shall be deemed property
placed in service on the | ||||||
13 | date of such increase in basis. | ||||||
14 | (5) The term "placed in service" shall have the same | ||||||
15 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
16 | (6) If during any taxable year, any property ceases to | ||||||
17 | be qualified
property in the hands of the taxpayer within | ||||||
18 | 48 months after being placed
in service, or the situs of | ||||||
19 | any qualified property is moved outside the
Enterprise Zone | ||||||
20 | or River Edge Redevelopment Zone within 48 months after | ||||||
21 | being placed in service, the tax
imposed under subsections | ||||||
22 | (a) and (b) of this Section for such taxable year
shall be | ||||||
23 | increased. Such increase shall be determined by (i) | ||||||
24 | recomputing
the investment credit which would have been | ||||||
25 | allowed for the year in which
credit for such property was | ||||||
26 | originally allowed by eliminating such
property from such |
| |||||||
| |||||||
1 | computation, and (ii) subtracting such recomputed credit
| ||||||
2 | from the amount of credit previously allowed. For the | ||||||
3 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
4 | qualified property resulting
from a redetermination of the | ||||||
5 | purchase price shall be deemed a disposition
of qualified | ||||||
6 | property to the extent of such reduction. | ||||||
7 | (7) There shall be allowed an additional credit equal | ||||||
8 | to 0.5% of the basis of qualified property placed in | ||||||
9 | service during the taxable year in a River Edge | ||||||
10 | Redevelopment Zone, provided such property is placed in | ||||||
11 | service on or after July 1, 2006, and the taxpayer's base | ||||||
12 | employment within Illinois has increased by 1% or more over | ||||||
13 | the preceding year as determined by the taxpayer's | ||||||
14 | employment records filed with the Illinois Department of | ||||||
15 | Employment Security. Taxpayers who are new to Illinois | ||||||
16 | shall be deemed to have met the 1% growth in base | ||||||
17 | employment for the first year in which they file employment | ||||||
18 | records with the Illinois Department of Employment | ||||||
19 | Security. If, in any year, the increase in base employment | ||||||
20 | within Illinois over the preceding year is less than 1%, | ||||||
21 | the additional credit shall be limited to that percentage | ||||||
22 | times a fraction, the numerator of which is 0.5% and the | ||||||
23 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
24 | (g) (Blank). | ||||||
25 | (h) Investment credit; High Impact Business. | ||||||
26 | (1) Subject to subsections (b) and (b-5) of Section
5.5 |
| |||||||
| |||||||
1 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
2 | allowed a credit
against the tax imposed by subsections (a) | ||||||
3 | and (b) of this Section for
investment in qualified
| ||||||
4 | property which is placed in service by a Department of | ||||||
5 | Commerce and Economic Opportunity
designated High Impact | ||||||
6 | Business. The credit shall be .5% of the basis
for such | ||||||
7 | property. The credit shall not be available (i) until the | ||||||
8 | minimum
investments in qualified property set forth in | ||||||
9 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
10 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
11 | time authorized in subsection (b-5) of the Illinois
| ||||||
12 | Enterprise Zone Act for entities designated as High Impact | ||||||
13 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
14 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
15 | Act, and shall not be allowed to the extent that it would
| ||||||
16 | reduce a taxpayer's liability for the tax imposed by | ||||||
17 | subsections (a) and (b) of
this Section to below zero. The | ||||||
18 | credit applicable to such investments shall be
taken in the | ||||||
19 | taxable year in which such investments have been completed. | ||||||
20 | The
credit for additional investments beyond the minimum | ||||||
21 | investment by a designated
high impact business authorized | ||||||
22 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
23 | Enterprise Zone Act shall be available only in the taxable | ||||||
24 | year in
which the property is placed in service and shall | ||||||
25 | not be allowed to the extent
that it would reduce a | ||||||
26 | taxpayer's liability for the tax imposed by subsections
(a) |
| |||||||
| |||||||
1 | and (b) of this Section to below zero.
For tax years ending | ||||||
2 | on or after December 31, 1987, the credit shall be
allowed | ||||||
3 | for the tax year in which the property is placed in | ||||||
4 | service, or, if
the amount of the credit exceeds the tax | ||||||
5 | liability for that year, whether
it exceeds the original | ||||||
6 | liability or the liability as later amended, such
excess | ||||||
7 | may be carried forward and applied to the tax liability of | ||||||
8 | the 5
taxable years following the excess credit year. The | ||||||
9 | credit shall be
applied to the earliest year for which | ||||||
10 | there is a liability. If there is
credit from more than one | ||||||
11 | tax year that is available to offset a liability,
the | ||||||
12 | credit accruing first in time shall be applied first. | ||||||
13 | Changes made in this subdivision (h)(1) by Public Act | ||||||
14 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
15 | reflect existing law. | ||||||
16 | (2) The term qualified property means property which: | ||||||
17 | (A) is tangible, whether new or used, including | ||||||
18 | buildings and
structural components of buildings; | ||||||
19 | (B) is depreciable pursuant to Section 167 of the | ||||||
20 | Internal Revenue
Code, except that "3-year property" | ||||||
21 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
22 | eligible for the credit provided by this subsection | ||||||
23 | (h); | ||||||
24 | (C) is acquired by purchase as defined in Section | ||||||
25 | 179(d) of the
Internal Revenue Code; and | ||||||
26 | (D) is not eligible for the Enterprise Zone |
| |||||||
| |||||||
1 | Investment Credit provided
by subsection (f) of this | ||||||
2 | Section. | ||||||
3 | (3) The basis of qualified property shall be the basis | ||||||
4 | used to compute
the depreciation deduction for federal | ||||||
5 | income tax purposes. | ||||||
6 | (4) If the basis of the property for federal income tax | ||||||
7 | depreciation
purposes is increased after it has been placed | ||||||
8 | in service in a federally
designated Foreign Trade Zone or | ||||||
9 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
10 | such increase shall be deemed property placed in service on
| ||||||
11 | the date of such increase in basis. | ||||||
12 | (5) The term "placed in service" shall have the same | ||||||
13 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
14 | (6) If during any taxable year ending on or before | ||||||
15 | December 31, 1996,
any property ceases to be qualified
| ||||||
16 | property in the hands of the taxpayer within 48 months | ||||||
17 | after being placed
in service, or the situs of any | ||||||
18 | qualified property is moved outside
Illinois within 48 | ||||||
19 | months after being placed in service, the tax imposed
under | ||||||
20 | subsections (a) and (b) of this Section for such taxable | ||||||
21 | year shall
be increased. Such increase shall be determined | ||||||
22 | by (i) recomputing the
investment credit which would have | ||||||
23 | been allowed for the year in which
credit for such property | ||||||
24 | was originally allowed by eliminating such
property from | ||||||
25 | such computation, and (ii) subtracting such recomputed | ||||||
26 | credit
from the amount of credit previously allowed. For |
| |||||||
| |||||||
1 | the purposes of this
paragraph (6), a reduction of the | ||||||
2 | basis of qualified property resulting
from a | ||||||
3 | redetermination of the purchase price shall be deemed a | ||||||
4 | disposition
of qualified property to the extent of such | ||||||
5 | reduction. | ||||||
6 | (7) Beginning with tax years ending after December 31, | ||||||
7 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
8 | subsection (h) and thereby is
granted a tax abatement and | ||||||
9 | the taxpayer relocates its entire facility in
violation of | ||||||
10 | the explicit terms and length of the contract under Section
| ||||||
11 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
12 | subsections
(a) and (b) of this Section shall be increased | ||||||
13 | for the taxable year
in which the taxpayer relocated its | ||||||
14 | facility by an amount equal to the
amount of credit | ||||||
15 | received by the taxpayer under this subsection (h). | ||||||
16 | (i) Credit for Personal Property Tax Replacement Income | ||||||
17 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
18 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
19 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
20 | (d) of this Section. This credit shall be computed by | ||||||
21 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
22 | Section by a fraction, the numerator
of which is base income | ||||||
23 | allocable to Illinois and the denominator of which is
Illinois | ||||||
24 | base income, and further multiplying the product by the tax | ||||||
25 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
26 | Any credit earned on or after December 31, 1986 under
this |
| |||||||
| |||||||
1 | subsection which is unused in the year
the credit is computed | ||||||
2 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
3 | and (b) for that year (whether it exceeds the original
| ||||||
4 | liability or the liability as later amended) may be carried | ||||||
5 | forward and
applied to the tax liability imposed by subsections | ||||||
6 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
7 | year, provided that no credit may
be carried forward to any | ||||||
8 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
9 | applied first to the earliest year for which there is a | ||||||
10 | liability. If
there is a credit under this subsection from more | ||||||
11 | than one tax year that is
available to offset a liability the | ||||||
12 | earliest credit arising under this
subsection shall be applied | ||||||
13 | first. | ||||||
14 | If, during any taxable year ending on or after December 31, | ||||||
15 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
16 | Section for which a taxpayer
has claimed a credit under this | ||||||
17 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
18 | shall also be reduced. Such reduction shall be
determined by | ||||||
19 | recomputing the credit to take into account the reduced tax
| ||||||
20 | imposed by subsections (c) and (d). If any portion of the
| ||||||
21 | reduced amount of credit has been carried to a different | ||||||
22 | taxable year, an
amended return shall be filed for such taxable | ||||||
23 | year to reduce the amount of
credit claimed. | ||||||
24 | (j) Training expense credit. Beginning with tax years | ||||||
25 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
26 | 2003, a taxpayer shall be
allowed a credit against the
tax |
| |||||||
| |||||||
1 | imposed by subsections (a) and (b) under this Section
for all | ||||||
2 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
3 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
4 | of Illinois by a taxpayer, for educational or vocational | ||||||
5 | training in
semi-technical or technical fields or semi-skilled | ||||||
6 | or skilled fields, which
were deducted from gross income in the | ||||||
7 | computation of taxable income. The
credit against the tax | ||||||
8 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
9 | training expenses. For partners, shareholders of subchapter S
| ||||||
10 | corporations, and owners of limited liability companies, if the | ||||||
11 | liability
company is treated as a partnership for purposes of | ||||||
12 | federal and State income
taxation, there shall be allowed a | ||||||
13 | credit under this subsection (j) to be
determined in accordance | ||||||
14 | with the determination of income and distributive
share of | ||||||
15 | income under Sections 702 and 704 and subchapter S of the | ||||||
16 | Internal
Revenue Code. | ||||||
17 | Any credit allowed under this subsection which is unused in | ||||||
18 | the year
the credit is earned may be carried forward to each of | ||||||
19 | the 5 taxable
years following the year for which the credit is | ||||||
20 | first computed until it is
used. This credit shall be applied | ||||||
21 | first to the earliest year for which
there is a liability. If | ||||||
22 | there is a credit under this subsection from more
than one tax | ||||||
23 | year that is available to offset a liability the earliest
| ||||||
24 | credit arising under this subsection shall be applied first. No | ||||||
25 | carryforward
credit may be claimed in any tax year ending on or | ||||||
26 | after
December 31, 2003. |
| |||||||
| |||||||
1 | (k) Research and development credit. For tax years ending | ||||||
2 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
3 | beginning again for tax years ending on or after December 31, | ||||||
4 | 2004, and ending prior to January 1, 2022 January 1, 2016 , a | ||||||
5 | taxpayer shall be
allowed a credit against the tax imposed by | ||||||
6 | subsections (a) and (b) of this
Section for increasing research | ||||||
7 | activities in this State. The credit
allowed against the tax | ||||||
8 | imposed by subsections (a) and (b) shall be equal
to 6 1/2% of | ||||||
9 | the qualifying expenditures for increasing research activities
| ||||||
10 | in this State. For partners, shareholders of subchapter S | ||||||
11 | corporations, and
owners of limited liability companies, if the | ||||||
12 | liability company is treated as a
partnership for purposes of | ||||||
13 | federal and State income taxation, there shall be
allowed a | ||||||
14 | credit under this subsection to be determined in accordance | ||||||
15 | with the
determination of income and distributive share of | ||||||
16 | income under Sections 702 and
704 and subchapter S of the | ||||||
17 | Internal Revenue Code. | ||||||
18 | For purposes of this subsection, "qualifying expenditures" | ||||||
19 | means the
qualifying expenditures as defined for the federal | ||||||
20 | credit for increasing
research activities which would be | ||||||
21 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
22 | which are conducted in this State, "qualifying
expenditures for | ||||||
23 | increasing research activities in this State" means the
excess | ||||||
24 | of qualifying expenditures for the taxable year in which | ||||||
25 | incurred
over qualifying expenditures for the base period, | ||||||
26 | "qualifying expenditures
for the base period" means the average |
| |||||||
| |||||||
1 | of the qualifying expenditures for
each year in the base | ||||||
2 | period, and "base period" means the 3 taxable years
immediately | ||||||
3 | preceding the taxable year for which the determination is
being | ||||||
4 | made. | ||||||
5 | Any credit in excess of the tax liability for the taxable | ||||||
6 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
7 | unused credit shown on its final completed return carried over | ||||||
8 | as a credit
against the tax liability for the following 5 | ||||||
9 | taxable years or until it has
been fully used, whichever occurs | ||||||
10 | first; provided that no credit earned in a tax year ending | ||||||
11 | prior to December 31, 2003 may be carried forward to any year | ||||||
12 | ending on or after December 31, 2003. | ||||||
13 | If an unused credit is carried forward to a given year from | ||||||
14 | 2 or more
earlier years, that credit arising in the earliest | ||||||
15 | year will be applied
first against the tax liability for the | ||||||
16 | given year. If a tax liability for
the given year still | ||||||
17 | remains, the credit from the next earliest year will
then be | ||||||
18 | applied, and so on, until all credits have been used or no tax
| ||||||
19 | liability for the given year remains. Any remaining unused | ||||||
20 | credit or
credits then will be carried forward to the next | ||||||
21 | following year in which a
tax liability is incurred, except | ||||||
22 | that no credit can be carried forward to
a year which is more | ||||||
23 | than 5 years after the year in which the expense for
which the | ||||||
24 | credit is given was incurred. | ||||||
25 | No inference shall be drawn from this amendatory Act of the | ||||||
26 | 91st General
Assembly in construing this Section for taxable |
| |||||||
| |||||||
1 | years beginning before January
1, 1999. | ||||||
2 | It is the intent of the General Assembly that the research | ||||||
3 | and development credit under this subsection (k) shall apply | ||||||
4 | continuously for all tax years ending on or after December 31, | ||||||
5 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
6 | limited to, the period beginning on January 1, 2016 and ending | ||||||
7 | on the effective date of this amendatory Act of the 100th | ||||||
8 | General Assembly. All actions taken in reliance on the | ||||||
9 | continuation of the credit under this subsection (k) by any | ||||||
10 | taxpayer are hereby validated. | ||||||
11 | (l) Environmental Remediation Tax Credit. | ||||||
12 | (i) For tax years ending after December 31, 1997 and on | ||||||
13 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
14 | credit against the tax
imposed by subsections (a) and (b) | ||||||
15 | of this Section for certain amounts paid
for unreimbursed | ||||||
16 | eligible remediation costs, as specified in this | ||||||
17 | subsection.
For purposes of this Section, "unreimbursed | ||||||
18 | eligible remediation costs" means
costs approved by the | ||||||
19 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
20 | Section 58.14 of the Environmental Protection Act that were | ||||||
21 | paid in performing
environmental remediation at a site for | ||||||
22 | which a No Further Remediation Letter
was issued by the | ||||||
23 | Agency and recorded under Section 58.10 of the | ||||||
24 | Environmental
Protection Act. The credit must be claimed | ||||||
25 | for the taxable year in which
Agency approval of the | ||||||
26 | eligible remediation costs is granted. The credit is
not |
| |||||||
| |||||||
1 | available to any taxpayer if the taxpayer or any related | ||||||
2 | party caused or
contributed to, in any material respect, a | ||||||
3 | release of regulated substances on,
in, or under the site | ||||||
4 | that was identified and addressed by the remedial
action | ||||||
5 | pursuant to the Site Remediation Program of the | ||||||
6 | Environmental Protection
Act. After the Pollution Control | ||||||
7 | Board rules are adopted pursuant to the
Illinois | ||||||
8 | Administrative Procedure Act for the administration and | ||||||
9 | enforcement of
Section 58.9 of the Environmental | ||||||
10 | Protection Act, determinations as to credit
availability | ||||||
11 | for purposes of this Section shall be made consistent with | ||||||
12 | those
rules. For purposes of this Section, "taxpayer" | ||||||
13 | includes a person whose tax
attributes the taxpayer has | ||||||
14 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
15 | and "related party" includes the persons disallowed a | ||||||
16 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
17 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
18 | a related taxpayer, as well as any of its
partners. The | ||||||
19 | credit allowed against the tax imposed by subsections (a) | ||||||
20 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
21 | remediation costs in
excess of $100,000 per site, except | ||||||
22 | that the $100,000 threshold shall not apply
to any site | ||||||
23 | contained in an enterprise zone as determined by the | ||||||
24 | Department of
Commerce and Community Affairs (now | ||||||
25 | Department of Commerce and Economic Opportunity). The | ||||||
26 | total credit allowed shall not exceed
$40,000 per year with |
| |||||||
| |||||||
1 | a maximum total of $150,000 per site. For partners and
| ||||||
2 | shareholders of subchapter S corporations, there shall be | ||||||
3 | allowed a credit
under this subsection to be determined in | ||||||
4 | accordance with the determination of
income and | ||||||
5 | distributive share of income under Sections 702 and 704 and
| ||||||
6 | subchapter S of the Internal Revenue Code. | ||||||
7 | (ii) A credit allowed under this subsection that is | ||||||
8 | unused in the year
the credit is earned may be carried | ||||||
9 | forward to each of the 5 taxable years
following the year | ||||||
10 | for which the credit is first earned until it is used.
The | ||||||
11 | term "unused credit" does not include any amounts of | ||||||
12 | unreimbursed eligible
remediation costs in excess of the | ||||||
13 | maximum credit per site authorized under
paragraph (i). | ||||||
14 | This credit shall be applied first to the earliest year
for | ||||||
15 | which there is a liability. If there is a credit under this | ||||||
16 | subsection
from more than one tax year that is available to | ||||||
17 | offset a liability, the
earliest credit arising under this | ||||||
18 | subsection shall be applied first. A
credit allowed under | ||||||
19 | this subsection may be sold to a buyer as part of a sale
of | ||||||
20 | all or part of the remediation site for which the credit | ||||||
21 | was granted. The
purchaser of a remediation site and the | ||||||
22 | tax credit shall succeed to the unused
credit and remaining | ||||||
23 | carry-forward period of the seller. To perfect the
| ||||||
24 | transfer, the assignor shall record the transfer in the | ||||||
25 | chain of title for the
site and provide written notice to | ||||||
26 | the Director of the Illinois Department of
Revenue of the |
| |||||||
| |||||||
1 | assignor's intent to sell the remediation site and the | ||||||
2 | amount of
the tax credit to be transferred as a portion of | ||||||
3 | the sale. In no event may a
credit be transferred to any | ||||||
4 | taxpayer if the taxpayer or a related party would
not be | ||||||
5 | eligible under the provisions of subsection (i). | ||||||
6 | (iii) For purposes of this Section, the term "site" | ||||||
7 | shall have the same
meaning as under Section 58.2 of the | ||||||
8 | Environmental Protection Act. | ||||||
9 | (m) Education expense credit. Beginning with tax years | ||||||
10 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
11 | of one or more qualifying pupils shall be allowed a credit
| ||||||
12 | against the tax imposed by subsections (a) and (b) of this | ||||||
13 | Section for
qualified education expenses incurred on behalf of | ||||||
14 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
15 | qualified education expenses, but in no
event may the total | ||||||
16 | credit under this subsection claimed by a
family that is the
| ||||||
17 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
18 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
19 | ending on or after December 31, 2017 . In no event shall a | ||||||
20 | credit under
this subsection reduce the taxpayer's liability | ||||||
21 | under this Act to less than
zero. Notwithstanding any other | ||||||
22 | provision of law, for taxable years beginning on or after | ||||||
23 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
24 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
25 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
26 | filing a joint federal tax return or (ii) $250,000, in the case |
| |||||||
| |||||||
1 | of all other taxpayers. This subsection is exempt from the | ||||||
2 | provisions of Section 250 of this
Act. | ||||||
3 | For purposes of this subsection: | ||||||
4 | "Qualifying pupils" means individuals who (i) are | ||||||
5 | residents of the State of
Illinois, (ii) are under the age of | ||||||
6 | 21 at the close of the school year for
which a credit is | ||||||
7 | sought, and (iii) during the school year for which a credit
is | ||||||
8 | sought were full-time pupils enrolled in a kindergarten through | ||||||
9 | twelfth
grade education program at any school, as defined in | ||||||
10 | this subsection. | ||||||
11 | "Qualified education expense" means the amount incurred
on | ||||||
12 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
13 | book fees, and
lab fees at the school in which the pupil is | ||||||
14 | enrolled during the regular school
year. | ||||||
15 | "School" means any public or nonpublic elementary or | ||||||
16 | secondary school in
Illinois that is in compliance with Title | ||||||
17 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
18 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
19 | except that nothing shall be construed to require a child to
| ||||||
20 | attend any particular public or nonpublic school to qualify for | ||||||
21 | the credit
under this Section. | ||||||
22 | "Custodian" means, with respect to qualifying pupils, an | ||||||
23 | Illinois resident
who is a parent, the parents, a legal | ||||||
24 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
25 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
26 | credit.
|
| |||||||
| |||||||
1 | (i) For tax years ending on or after December 31, 2006, | ||||||
2 | a taxpayer shall be allowed a credit against the tax | ||||||
3 | imposed by subsections (a) and (b) of this Section for | ||||||
4 | certain amounts paid for unreimbursed eligible remediation | ||||||
5 | costs, as specified in this subsection. For purposes of | ||||||
6 | this Section, "unreimbursed eligible remediation costs" | ||||||
7 | means costs approved by the Illinois Environmental | ||||||
8 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
9 | Environmental Protection Act that were paid in performing | ||||||
10 | environmental remediation at a site within a River Edge | ||||||
11 | Redevelopment Zone for which a No Further Remediation | ||||||
12 | Letter was issued by the Agency and recorded under Section | ||||||
13 | 58.10 of the Environmental Protection Act. The credit must | ||||||
14 | be claimed for the taxable year in which Agency approval of | ||||||
15 | the eligible remediation costs is granted. The credit is | ||||||
16 | not available to any taxpayer if the taxpayer or any | ||||||
17 | related party caused or contributed to, in any material | ||||||
18 | respect, a release of regulated substances on, in, or under | ||||||
19 | the site that was identified and addressed by the remedial | ||||||
20 | action pursuant to the Site Remediation Program of the | ||||||
21 | Environmental Protection Act. Determinations as to credit | ||||||
22 | availability for purposes of this Section shall be made | ||||||
23 | consistent with rules adopted by the Pollution Control | ||||||
24 | Board pursuant to the Illinois Administrative Procedure | ||||||
25 | Act for the administration and enforcement of Section 58.9 | ||||||
26 | of the Environmental Protection Act. For purposes of this |
| |||||||
| |||||||
1 | Section, "taxpayer" includes a person whose tax attributes | ||||||
2 | the taxpayer has succeeded to under Section 381 of the | ||||||
3 | Internal Revenue Code and "related party" includes the | ||||||
4 | persons disallowed a deduction for losses by paragraphs | ||||||
5 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
6 | Code by virtue of being a related taxpayer, as well as any | ||||||
7 | of its partners. The credit allowed against the tax imposed | ||||||
8 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
9 | unreimbursed eligible remediation costs in excess of | ||||||
10 | $100,000 per site. | ||||||
11 | (ii) A credit allowed under this subsection that is | ||||||
12 | unused in the year the credit is earned may be carried | ||||||
13 | forward to each of the 5 taxable years following the year | ||||||
14 | for which the credit is first earned until it is used. This | ||||||
15 | credit shall be applied first to the earliest year for | ||||||
16 | which there is a liability. If there is a credit under this | ||||||
17 | subsection from more than one tax year that is available to | ||||||
18 | offset a liability, the earliest credit arising under this | ||||||
19 | subsection shall be applied first. A credit allowed under | ||||||
20 | this subsection may be sold to a buyer as part of a sale of | ||||||
21 | all or part of the remediation site for which the credit | ||||||
22 | was granted. The purchaser of a remediation site and the | ||||||
23 | tax credit shall succeed to the unused credit and remaining | ||||||
24 | carry-forward period of the seller. To perfect the | ||||||
25 | transfer, the assignor shall record the transfer in the | ||||||
26 | chain of title for the site and provide written notice to |
| |||||||
| |||||||
1 | the Director of the Illinois Department of Revenue of the | ||||||
2 | assignor's intent to sell the remediation site and the | ||||||
3 | amount of the tax credit to be transferred as a portion of | ||||||
4 | the sale. In no event may a credit be transferred to any | ||||||
5 | taxpayer if the taxpayer or a related party would not be | ||||||
6 | eligible under the provisions of subsection (i). | ||||||
7 | (iii) For purposes of this Section, the term "site" | ||||||
8 | shall have the same meaning as under Section 58.2 of the | ||||||
9 | Environmental Protection Act. | ||||||
10 | (o) For each of taxable years during the Compassionate Use | ||||||
11 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
12 | all taxpayers on income arising from the sale or exchange of | ||||||
13 | capital assets, depreciable business property, real property | ||||||
14 | used in the trade or business, and Section 197 intangibles of | ||||||
15 | an organization registrant under the Compassionate Use of | ||||||
16 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
17 | is equal to the amount of federal income tax liability for the | ||||||
18 | taxable year attributable to those sales and exchanges. The | ||||||
19 | surcharge imposed does not apply if: | ||||||
20 | (1) the medical cannabis cultivation center | ||||||
21 | registration, medical cannabis dispensary registration, or | ||||||
22 | the property of a registration is transferred as a result | ||||||
23 | of any of the following: | ||||||
24 | (A) bankruptcy, a receivership, or a debt | ||||||
25 | adjustment initiated by or against the initial | ||||||
26 | registration or the substantial owners of the initial |
| |||||||
| |||||||
1 | registration; | ||||||
2 | (B) cancellation, revocation, or termination of | ||||||
3 | any registration by the Illinois Department of Public | ||||||
4 | Health; | ||||||
5 | (C) a determination by the Illinois Department of | ||||||
6 | Public Health that transfer of the registration is in | ||||||
7 | the best interests of Illinois qualifying patients as | ||||||
8 | defined by the Compassionate Use of Medical Cannabis | ||||||
9 | Pilot Program Act; | ||||||
10 | (D) the death of an owner of the equity interest in | ||||||
11 | a registrant; | ||||||
12 | (E) the acquisition of a controlling interest in | ||||||
13 | the stock or substantially all of the assets of a | ||||||
14 | publicly traded company; | ||||||
15 | (F) a transfer by a parent company to a wholly | ||||||
16 | owned subsidiary; or | ||||||
17 | (G) the transfer or sale to or by one person to | ||||||
18 | another person where both persons were initial owners | ||||||
19 | of the registration when the registration was issued; | ||||||
20 | or | ||||||
21 | (2) the cannabis cultivation center registration, | ||||||
22 | medical cannabis dispensary registration, or the | ||||||
23 | controlling interest in a registrant's property is | ||||||
24 | transferred in a transaction to lineal descendants in which | ||||||
25 | no gain or loss is recognized or as a result of a | ||||||
26 | transaction in accordance with Section 351 of the Internal |
| |||||||
| |||||||
1 | Revenue Code in which no gain or loss is recognized. | ||||||
2 | (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, | ||||||
3 | eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756, | ||||||
4 | eff. 7-16-14.)
| ||||||
5 | (35 ILCS 5/202.5) | ||||||
6 | Sec. 202.5. Net income attributable to the period beginning | ||||||
7 | prior to the first day of a month and ending after the last day | ||||||
8 | of the preceding month January 1 of any year and ending after | ||||||
9 | December 31 of the preceding year . | ||||||
10 | (a) In general. With respect to the taxable year of a | ||||||
11 | taxpayer beginning prior to the first day of a month and ending | ||||||
12 | after the last day of the preceding month January 1 of any year | ||||||
13 | and ending after December 31 of the preceding year , net income | ||||||
14 | for the period after the last day of the preceding month | ||||||
15 | December 31 of the preceding year , is that amount that bears | ||||||
16 | the same ratio to the taxpayer's net income for the entire | ||||||
17 | taxable year as the number of days in that taxable year after | ||||||
18 | the last day of the preceding month December 31 bears to the | ||||||
19 | total number of days in that taxable year, and the net income | ||||||
20 | for the period prior to the first day of the month January 1 is | ||||||
21 | that amount that bears the same ratio to the taxpayer's net | ||||||
22 | income for the entire taxable year as the number of days in | ||||||
23 | that taxable year prior to the first day of the month January 1 | ||||||
24 | bears to the total number of days in that taxable year. | ||||||
25 | (b) Election to attribute income and deduction items |
| |||||||
| |||||||
1 | specifically to the respective portions of a taxable year prior | ||||||
2 | to the first day of a month and ending after the last day of the | ||||||
3 | preceding month January 1 of any year and after December 31 of | ||||||
4 | the preceding year . In the case of a taxpayer with a taxable | ||||||
5 | year beginning prior to the first day of a month and ending | ||||||
6 | after the last day of the preceding month January 1 of any year | ||||||
7 | and ending after December 31 of the preceding year , the | ||||||
8 | taxpayer may elect, instead of the procedure established in | ||||||
9 | subsection (a) of this Section, to determine net income on a | ||||||
10 | specific accounting basis for the 2 portions of the taxable | ||||||
11 | year: | ||||||
12 | (1) from the beginning of the taxable year through the | ||||||
13 | last day of that apportionment period December 31 ; and | ||||||
14 | (2) from the first day of the next apportionment period | ||||||
15 | January 1 through the end of the taxable year. | ||||||
16 | The election provided by this subsection must be made in | ||||||
17 | the form and manner that the Department requires by rule, and | ||||||
18 | must be made no later than the due date (including any | ||||||
19 | extensions thereof) for the filing of the return for the | ||||||
20 | taxable year, and is irrevocable. | ||||||
21 | (c) If the taxpayer elects specific accounting under | ||||||
22 | subsection (b): | ||||||
23 | (1) there shall be taken into account in computing base | ||||||
24 | income for each of the 2 portions of the taxable year only | ||||||
25 | those items earned, received, paid, incurred or accrued in | ||||||
26 | each such period; |
| |||||||
| |||||||
1 | (2) for purposes of apportioning business income of the | ||||||
2 | taxpayer, the provisions in Article 3 shall be applied on | ||||||
3 | the basis of the taxpayer's full taxable year, without | ||||||
4 | regard to this Section; | ||||||
5 | (3) the exemption provided by Section 204 shall be | ||||||
6 | divided between the respective periods in amounts which | ||||||
7 | bear the same ratio to the total exemption allowable under | ||||||
8 | Section 204 (determined without regard to this Section) as | ||||||
9 | the total number of days in each period bears to the total | ||||||
10 | number of days in the taxable year; | ||||||
11 | (4) for purposes of this subsection, net income may not | ||||||
12 | be negative for either of the two portions of the taxable | ||||||
13 | year and positive for the other; if net income for one | ||||||
14 | portion of the taxable year would be positive and net | ||||||
15 | income for the other portion would otherwise be negative, | ||||||
16 | the net income for the entire taxable year shall be | ||||||
17 | attributed to the portion of the taxable year with positive | ||||||
18 | net income and the net income for the other portion of the | ||||||
19 | taxable year shall be zero; and | ||||||
20 | (5) the net loss carryforward deduction for the taxable | ||||||
21 | year under Section 207 may not exceed combined net income | ||||||
22 | of both portions of the taxable year, and shall be used | ||||||
23 | against the net income of the portion of the taxable year | ||||||
24 | from the beginning of the taxable year through the last day | ||||||
25 | of the preceding month December 31 before any remaining | ||||||
26 | amount is used against the net income of the latter portion |
| |||||||
| |||||||
1 | of the taxable year.
| ||||||
2 | (Source: P.A. 96-1496, eff. 1-13-11.)
| ||||||
3 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
4 | Sec. 203. Base income defined. | ||||||
5 | (a) Individuals. | ||||||
6 | (1) In general. In the case of an individual, base | ||||||
7 | income means an
amount equal to the taxpayer's adjusted | ||||||
8 | gross income for the taxable
year as modified by paragraph | ||||||
9 | (2). | ||||||
10 | (2) Modifications. The adjusted gross income referred | ||||||
11 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
12 | sum of the
following amounts: | ||||||
13 | (A) An amount equal to all amounts paid or accrued | ||||||
14 | to the taxpayer
as interest or dividends during the | ||||||
15 | taxable year to the extent excluded
from gross income | ||||||
16 | in the computation of adjusted gross income, except | ||||||
17 | stock
dividends of qualified public utilities | ||||||
18 | described in Section 305(e) of the
Internal Revenue | ||||||
19 | Code; | ||||||
20 | (B) An amount equal to the amount of tax imposed by | ||||||
21 | this Act to the
extent deducted from gross income in | ||||||
22 | the computation of adjusted gross
income for the | ||||||
23 | taxable year; | ||||||
24 | (C) An amount equal to the amount received during | ||||||
25 | the taxable year
as a recovery or refund of real |
| |||||||
| |||||||
1 | property taxes paid with respect to the
taxpayer's | ||||||
2 | principal residence under the Revenue Act of
1939 and | ||||||
3 | for which a deduction was previously taken under | ||||||
4 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
5 | 1991, the retrospective application date of
Article 4 | ||||||
6 | of Public Act 87-17. In the case of multi-unit or | ||||||
7 | multi-use
structures and farm dwellings, the taxes on | ||||||
8 | the taxpayer's principal residence
shall be that | ||||||
9 | portion of the total taxes for the entire property | ||||||
10 | which is
attributable to such principal residence; | ||||||
11 | (D) An amount equal to the amount of the capital | ||||||
12 | gain deduction
allowable under the Internal Revenue | ||||||
13 | Code, to the extent deducted from gross
income in the | ||||||
14 | computation of adjusted gross income; | ||||||
15 | (D-5) An amount, to the extent not included in | ||||||
16 | adjusted gross income,
equal to the amount of money | ||||||
17 | withdrawn by the taxpayer in the taxable year from
a | ||||||
18 | medical care savings account and the interest earned on | ||||||
19 | the account in the
taxable year of a withdrawal | ||||||
20 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
21 | Care Savings Account Act or subsection (b) of Section | ||||||
22 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
23 | (D-10) For taxable years ending after December 31, | ||||||
24 | 1997, an
amount equal to any eligible remediation costs | ||||||
25 | that the individual
deducted in computing adjusted | ||||||
26 | gross income and for which the
individual claims a |
| |||||||
| |||||||
1 | credit under subsection (l) of Section 201; | ||||||
2 | (D-15) For taxable years 2001 and thereafter, an | ||||||
3 | amount equal to the
bonus depreciation deduction taken | ||||||
4 | on the taxpayer's federal income tax return for the | ||||||
5 | taxable
year under subsection (k) of Section 168 of the | ||||||
6 | Internal Revenue Code; | ||||||
7 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
8 | or otherwise disposes of property for which the | ||||||
9 | taxpayer was required in any taxable year to
make an | ||||||
10 | addition modification under subparagraph (D-15), then | ||||||
11 | an amount equal
to the aggregate amount of the | ||||||
12 | deductions taken in all taxable
years under | ||||||
13 | subparagraph (Z) with respect to that property. | ||||||
14 | If the taxpayer continues to own property through | ||||||
15 | the last day of the last tax year for which the | ||||||
16 | taxpayer may claim a depreciation deduction for | ||||||
17 | federal income tax purposes and for which the taxpayer | ||||||
18 | was allowed in any taxable year to make a subtraction | ||||||
19 | modification under subparagraph (Z), then an amount | ||||||
20 | equal to that subtraction modification.
| ||||||
21 | The taxpayer is required to make the addition | ||||||
22 | modification under this
subparagraph
only once with | ||||||
23 | respect to any one piece of property; | ||||||
24 | (D-17) An amount equal to the amount otherwise | ||||||
25 | allowed as a deduction in computing base income for | ||||||
26 | interest paid, accrued, or incurred, directly or |
| |||||||
| |||||||
1 | indirectly, (i) for taxable years ending on or after | ||||||
2 | December 31, 2004, to a foreign person who would be a | ||||||
3 | member of the same unitary business group but for the | ||||||
4 | fact that foreign person's business activity outside | ||||||
5 | the United States is 80% or more of the foreign | ||||||
6 | person's total business activity and (ii) for taxable | ||||||
7 | years ending on or after December 31, 2008, to a person | ||||||
8 | who would be a member of the same unitary business | ||||||
9 | group but for the fact that the person is prohibited | ||||||
10 | under Section 1501(a)(27) from being included in the | ||||||
11 | unitary business group because he or she is ordinarily | ||||||
12 | required to apportion business income under different | ||||||
13 | subsections of Section 304. The addition modification | ||||||
14 | required by this subparagraph shall be reduced to the | ||||||
15 | extent that dividends were included in base income of | ||||||
16 | the unitary group for the same taxable year and | ||||||
17 | received by the taxpayer or by a member of the | ||||||
18 | taxpayer's unitary business group (including amounts | ||||||
19 | included in gross income under Sections 951 through 964 | ||||||
20 | of the Internal Revenue Code and amounts included in | ||||||
21 | gross income under Section 78 of the Internal Revenue | ||||||
22 | Code) with respect to the stock of the same person to | ||||||
23 | whom the interest was paid, accrued, or incurred. | ||||||
24 | This paragraph shall not apply to the following:
| ||||||
25 | (i) an item of interest paid, accrued, or | ||||||
26 | incurred, directly or indirectly, to a person who |
| |||||||
| |||||||
1 | is subject in a foreign country or state, other | ||||||
2 | than a state which requires mandatory unitary | ||||||
3 | reporting, to a tax on or measured by net income | ||||||
4 | with respect to such interest; or | ||||||
5 | (ii) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer can establish, based on a | ||||||
8 | preponderance of the evidence, both of the | ||||||
9 | following: | ||||||
10 | (a) the person, during the same taxable | ||||||
11 | year, paid, accrued, or incurred, the interest | ||||||
12 | to a person that is not a related member, and | ||||||
13 | (b) the transaction giving rise to the | ||||||
14 | interest expense between the taxpayer and the | ||||||
15 | person did not have as a principal purpose the | ||||||
16 | avoidance of Illinois income tax, and is paid | ||||||
17 | pursuant to a contract or agreement that | ||||||
18 | reflects an arm's-length interest rate and | ||||||
19 | terms; or
| ||||||
20 | (iii) the taxpayer can establish, based on | ||||||
21 | clear and convincing evidence, that the interest | ||||||
22 | paid, accrued, or incurred relates to a contract or | ||||||
23 | agreement entered into at arm's-length rates and | ||||||
24 | terms and the principal purpose for the payment is | ||||||
25 | not federal or Illinois tax avoidance; or
| ||||||
26 | (iv) an item of interest paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to a person if | ||||||
2 | the taxpayer establishes by clear and convincing | ||||||
3 | evidence that the adjustments are unreasonable; or | ||||||
4 | if the taxpayer and the Director agree in writing | ||||||
5 | to the application or use of an alternative method | ||||||
6 | 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-18) An amount equal to the amount of intangible | ||||||
17 | expenses and costs otherwise allowed as a deduction in | ||||||
18 | computing base income, and that were paid, accrued, or | ||||||
19 | incurred, directly or indirectly, (i) for taxable | ||||||
20 | years ending on or after December 31, 2004, to a | ||||||
21 | foreign person who would be a member of the same | ||||||
22 | unitary business group but for the fact that the | ||||||
23 | foreign person's business activity outside the United | ||||||
24 | States is 80% or more of that person's total business | ||||||
25 | activity and (ii) for taxable years ending on or after | ||||||
26 | December 31, 2008, to a person who would be a member of |
| |||||||
| |||||||
1 | the same unitary business group but for the fact that | ||||||
2 | the person is prohibited under Section 1501(a)(27) | ||||||
3 | from being included in the unitary business group | ||||||
4 | because he or she is ordinarily required to apportion | ||||||
5 | business income under different subsections of Section | ||||||
6 | 304. The addition modification required by this | ||||||
7 | subparagraph shall be reduced to the extent that | ||||||
8 | dividends were included in base income of the unitary | ||||||
9 | group for the same taxable year and received by the | ||||||
10 | taxpayer or by a member of the taxpayer's unitary | ||||||
11 | business group (including amounts included in gross | ||||||
12 | income under Sections 951 through 964 of the Internal | ||||||
13 | Revenue Code and amounts included in gross income under | ||||||
14 | Section 78 of the Internal Revenue Code) with respect | ||||||
15 | to the stock of the same person to whom the intangible | ||||||
16 | expenses and costs were directly or indirectly paid, | ||||||
17 | incurred, or accrued. The preceding sentence does not | ||||||
18 | apply to the extent that the same dividends caused a | ||||||
19 | reduction to the addition modification required under | ||||||
20 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
21 | subparagraph, the term "intangible expenses and costs" | ||||||
22 | includes (1) expenses, losses, and costs for, or | ||||||
23 | related to, the direct or indirect acquisition, use, | ||||||
24 | maintenance or management, ownership, sale, exchange, | ||||||
25 | or any other disposition of intangible property; (2) | ||||||
26 | losses incurred, directly or indirectly, from |
| |||||||
| |||||||
1 | factoring transactions or discounting transactions; | ||||||
2 | (3) royalty, patent, technical, and copyright fees; | ||||||
3 | (4) licensing fees; and (5) other similar expenses and | ||||||
4 | costs.
For purposes of this subparagraph, "intangible | ||||||
5 | property" includes patents, patent applications, trade | ||||||
6 | names, trademarks, service marks, copyrights, mask | ||||||
7 | works, trade secrets, and similar types of intangible | ||||||
8 | assets. | ||||||
9 | This paragraph shall not apply to the following: | ||||||
10 | (i) any item of intangible expenses or costs | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, from a transaction with a person who is | ||||||
13 | subject in a foreign country or state, other than a | ||||||
14 | state which requires mandatory unitary reporting, | ||||||
15 | to a tax on or measured by net income with respect | ||||||
16 | to such item; or | ||||||
17 | (ii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, if the taxpayer can establish, based | ||||||
20 | on a preponderance of the evidence, both of the | ||||||
21 | following: | ||||||
22 | (a) the person during the same taxable | ||||||
23 | year paid, accrued, or incurred, the | ||||||
24 | intangible expense or cost to a person that is | ||||||
25 | not a related member, and | ||||||
26 | (b) the transaction giving rise to the |
| |||||||
| |||||||
1 | intangible expense or cost between the | ||||||
2 | taxpayer and the person did not have as a | ||||||
3 | principal purpose the avoidance of Illinois | ||||||
4 | income tax, and is paid pursuant to a contract | ||||||
5 | or agreement that reflects arm's-length terms; | ||||||
6 | or | ||||||
7 | (iii) any item of intangible expense or cost | ||||||
8 | paid, accrued, or incurred, directly or | ||||||
9 | indirectly, from a transaction with a person if the | ||||||
10 | taxpayer establishes by clear and convincing | ||||||
11 | evidence, that the adjustments are unreasonable; | ||||||
12 | or if the taxpayer and the Director agree in | ||||||
13 | writing to the application or use of an alternative | ||||||
14 | method of apportionment under Section 304(f);
| ||||||
15 | Nothing in this subsection shall preclude the | ||||||
16 | Director from making any other adjustment | ||||||
17 | otherwise allowed under Section 404 of this Act for | ||||||
18 | any tax year beginning after the effective date of | ||||||
19 | this amendment provided such adjustment is made | ||||||
20 | pursuant to regulation adopted by the Department | ||||||
21 | and such regulations provide methods and standards | ||||||
22 | by which the Department will utilize its authority | ||||||
23 | under Section 404 of this Act;
| ||||||
24 | (D-19) For taxable years ending on or after | ||||||
25 | December 31, 2008, an amount equal to the amount of | ||||||
26 | insurance premium expenses and costs otherwise allowed |
| |||||||
| |||||||
1 | as a deduction in computing base income, and that were | ||||||
2 | paid, accrued, or incurred, directly or indirectly, to | ||||||
3 | a person who would be a member of the same unitary | ||||||
4 | business group but for the fact that the person is | ||||||
5 | prohibited under Section 1501(a)(27) from being | ||||||
6 | included in the unitary business group because he or | ||||||
7 | she is ordinarily required to apportion business | ||||||
8 | income under different subsections of Section 304. The | ||||||
9 | addition modification required by this subparagraph | ||||||
10 | shall be reduced to the extent that dividends were | ||||||
11 | included in base income of the unitary group for the | ||||||
12 | same taxable year and received by the taxpayer or by a | ||||||
13 | member of the taxpayer's unitary business group | ||||||
14 | (including amounts included in gross income under | ||||||
15 | Sections 951 through 964 of the Internal Revenue Code | ||||||
16 | and amounts included in gross income under Section 78 | ||||||
17 | of the Internal Revenue Code) with respect to the stock | ||||||
18 | of the same person to whom the premiums and costs were | ||||||
19 | directly or indirectly paid, incurred, or accrued. The | ||||||
20 | preceding sentence does not apply to the extent that | ||||||
21 | the same dividends caused a reduction to the addition | ||||||
22 | modification required under Section 203(a)(2)(D-17) or | ||||||
23 | Section 203(a)(2)(D-18) of this Act.
| ||||||
24 | (D-20) For taxable years beginning on or after | ||||||
25 | January 1,
2002 and ending on or before December 31, | ||||||
26 | 2006, in
the
case of a distribution from a qualified |
| |||||||
| |||||||
1 | tuition program under Section 529 of
the Internal | ||||||
2 | Revenue Code, other than (i) a distribution from a | ||||||
3 | College Savings
Pool created under Section 16.5 of the | ||||||
4 | State Treasurer Act or (ii) a
distribution from the | ||||||
5 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
6 | the amount excluded from gross income under Section | ||||||
7 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
8 | January 1, 2007, in the case of a distribution from a | ||||||
9 | qualified tuition program under Section 529 of the | ||||||
10 | Internal Revenue Code, other than (i) a distribution | ||||||
11 | from a College Savings Pool created under Section 16.5 | ||||||
12 | of the State Treasurer Act, (ii) a distribution from | ||||||
13 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
14 | distribution from a qualified tuition program under | ||||||
15 | Section 529 of the Internal Revenue Code that (I) | ||||||
16 | adopts and determines that its offering materials | ||||||
17 | comply with the College Savings Plans Network's | ||||||
18 | disclosure principles and (II) has made reasonable | ||||||
19 | efforts to inform in-state residents of the existence | ||||||
20 | of in-state qualified tuition programs by informing | ||||||
21 | Illinois residents directly and, where applicable, to | ||||||
22 | inform financial intermediaries distributing the | ||||||
23 | program to inform in-state residents of the existence | ||||||
24 | of in-state qualified tuition programs at least | ||||||
25 | annually, an amount equal to the amount excluded from | ||||||
26 | gross income under Section 529(c)(3)(B). |
| |||||||
| |||||||
1 | For the purposes of this subparagraph (D-20), a | ||||||
2 | qualified tuition program has made reasonable efforts | ||||||
3 | if it makes disclosures (which may use the term | ||||||
4 | "in-state program" or "in-state plan" and need not | ||||||
5 | specifically refer to Illinois or its qualified | ||||||
6 | programs by name) (i) directly to prospective | ||||||
7 | participants in its offering materials or makes a | ||||||
8 | public disclosure, such as a website posting; and (ii) | ||||||
9 | where applicable, to intermediaries selling the | ||||||
10 | out-of-state program in the same manner that the | ||||||
11 | out-of-state program distributes its offering | ||||||
12 | materials; | ||||||
13 | (D-21) For taxable years beginning on or after | ||||||
14 | January 1, 2007, in the case of transfer of moneys from | ||||||
15 | a qualified tuition program under Section 529 of the | ||||||
16 | Internal Revenue Code that is administered by the State | ||||||
17 | to an out-of-state program, an amount equal to the | ||||||
18 | amount of moneys previously deducted from base income | ||||||
19 | under subsection (a)(2)(Y) of this Section; | ||||||
20 | (D-22) For taxable years beginning on or after | ||||||
21 | January 1, 2009, in the case of a nonqualified | ||||||
22 | withdrawal or refund of moneys from a qualified tuition | ||||||
23 | program under Section 529 of the Internal Revenue Code | ||||||
24 | administered by the State that is not used for | ||||||
25 | qualified expenses at an eligible education | ||||||
26 | institution, an amount equal to the contribution |
| |||||||
| |||||||
1 | component of the nonqualified withdrawal or refund | ||||||
2 | that was previously deducted from base income under | ||||||
3 | subsection (a)(2)(y) of this Section, provided that | ||||||
4 | the withdrawal or refund did not result from the | ||||||
5 | beneficiary's death or disability; | ||||||
6 | (D-23) An amount equal to the credit allowable to | ||||||
7 | the taxpayer under Section 218(a) of this Act, | ||||||
8 | determined without regard to Section 218(c) of this | ||||||
9 | Act; | ||||||
10 | (D-24) For taxable years ending on or after | ||||||
11 | December 31, 2017, an amount equal to the deduction | ||||||
12 | allowed under Section 199 of the Internal Revenue Code | ||||||
13 | for the taxable year; | ||||||
14 | and by deducting from the total so obtained the
sum of the | ||||||
15 | following amounts: | ||||||
16 | (E) For taxable years ending before December 31, | ||||||
17 | 2001,
any amount included in such total in respect of | ||||||
18 | any compensation
(including but not limited to any | ||||||
19 | compensation paid or accrued to a
serviceman while a | ||||||
20 | prisoner of war or missing in action) paid to a | ||||||
21 | resident
by reason of being on active duty in the Armed | ||||||
22 | Forces of the United States
and in respect of any | ||||||
23 | compensation paid or accrued to a resident who as a
| ||||||
24 | governmental employee was a prisoner of war or missing | ||||||
25 | in action, and in
respect of any compensation paid to a | ||||||
26 | resident in 1971 or thereafter for
annual training |
| |||||||
| |||||||
1 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
2 | United States Code as a member of the Illinois National | ||||||
3 | Guard or, beginning with taxable years ending on or | ||||||
4 | after December 31, 2007, the National Guard of any | ||||||
5 | other state.
For taxable years ending on or after | ||||||
6 | December 31, 2001, any amount included in
such total in | ||||||
7 | respect of any compensation (including but not limited | ||||||
8 | to any
compensation paid or accrued to a serviceman | ||||||
9 | while a prisoner of war or missing
in action) paid to a | ||||||
10 | resident by reason of being a member of any component | ||||||
11 | of
the Armed Forces of the United States and in respect | ||||||
12 | of any compensation paid
or accrued to a resident who | ||||||
13 | as a governmental employee was a prisoner of war
or | ||||||
14 | missing in action, and in respect of any compensation | ||||||
15 | paid to a resident in
2001 or thereafter by reason of | ||||||
16 | being a member of the Illinois National Guard or, | ||||||
17 | beginning with taxable years ending on or after | ||||||
18 | December 31, 2007, the National Guard of any other | ||||||
19 | state.
The provisions of this subparagraph (E) are | ||||||
20 | exempt
from the provisions of Section 250; | ||||||
21 | (F) An amount equal to all amounts included in such | ||||||
22 | total pursuant
to the provisions of Sections 402(a), | ||||||
23 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
24 | Internal Revenue Code, or included in such total as
| ||||||
25 | distributions under the provisions of any retirement | ||||||
26 | or disability plan for
employees of any governmental |
| |||||||
| |||||||
1 | agency or unit, or retirement payments to
retired | ||||||
2 | partners, which payments are excluded in computing net | ||||||
3 | earnings
from self employment by Section 1402 of the | ||||||
4 | Internal Revenue Code and
regulations adopted pursuant | ||||||
5 | thereto; | ||||||
6 | (G) The valuation limitation amount; | ||||||
7 | (H) An amount equal to the amount of any tax | ||||||
8 | imposed by this Act
which was refunded to the taxpayer | ||||||
9 | and included in such total for the
taxable year; | ||||||
10 | (I) An amount equal to all amounts included in such | ||||||
11 | total pursuant
to the provisions of Section 111 of the | ||||||
12 | Internal Revenue Code as a
recovery of items previously | ||||||
13 | deducted from adjusted gross income in the
computation | ||||||
14 | of taxable income; | ||||||
15 | (J) An amount equal to those dividends included in | ||||||
16 | such total which were
paid by a corporation which | ||||||
17 | conducts business operations in a River Edge | ||||||
18 | Redevelopment Zone or zones created under the River | ||||||
19 | Edge Redevelopment Zone Act, and conducts
| ||||||
20 | substantially all of its operations in a River Edge | ||||||
21 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
22 | exempt from the provisions of Section 250; | ||||||
23 | (K) An amount equal to those dividends included in | ||||||
24 | such total that
were paid by a corporation that | ||||||
25 | conducts business operations in a federally
designated | ||||||
26 | Foreign Trade Zone or Sub-Zone and that is designated a |
| |||||||
| |||||||
1 | High Impact
Business located in Illinois; provided | ||||||
2 | that dividends eligible for the
deduction provided in | ||||||
3 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
4 | shall not be eligible for the deduction provided under | ||||||
5 | this subparagraph
(K); | ||||||
6 | (L) For taxable years ending after December 31, | ||||||
7 | 1983, an amount equal to
all social security benefits | ||||||
8 | and railroad retirement benefits included in
such | ||||||
9 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
10 | Revenue Code; | ||||||
11 | (M) With the exception of any amounts subtracted | ||||||
12 | under subparagraph
(N), an amount equal to the sum of | ||||||
13 | all amounts disallowed as
deductions by (i) Sections | ||||||
14 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
15 | and all amounts of expenses allocable
to interest and | ||||||
16 | disallowed as deductions by Section 265(1) of the | ||||||
17 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
18 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
19 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
20 | Code, plus, for taxable years ending on or after | ||||||
21 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
22 | Revenue Code and, for taxable years ending on or after | ||||||
23 | December 31, 2008, any amount included in gross income | ||||||
24 | under Section 87 of the Internal Revenue Code; the | ||||||
25 | provisions of this
subparagraph are exempt from the | ||||||
26 | provisions of Section 250; |
| |||||||
| |||||||
1 | (N) An amount equal to all amounts included in such | ||||||
2 | total which are
exempt from taxation by this State | ||||||
3 | either by reason of its statutes or
Constitution
or by | ||||||
4 | reason of the Constitution, treaties or statutes of the | ||||||
5 | United States;
provided that, in the case of any | ||||||
6 | statute of this State that exempts income
derived from | ||||||
7 | bonds or other obligations from the tax imposed under | ||||||
8 | this Act,
the amount exempted shall be the interest net | ||||||
9 | of bond premium amortization; | ||||||
10 | (O) An amount equal to any contribution made to a | ||||||
11 | job training
project established pursuant to the Tax | ||||||
12 | Increment Allocation Redevelopment Act; | ||||||
13 | (P) An amount equal to the amount of the deduction | ||||||
14 | used to compute the
federal income tax credit for | ||||||
15 | restoration of substantial amounts held under
claim of | ||||||
16 | right for the taxable year pursuant to Section 1341 of | ||||||
17 | the
Internal Revenue Code or of any itemized deduction | ||||||
18 | taken from adjusted gross income in the computation of | ||||||
19 | taxable income for restoration of substantial amounts | ||||||
20 | held under claim of right for the taxable year; | ||||||
21 | (Q) An amount equal to any amounts included in such | ||||||
22 | total, received by
the taxpayer as an acceleration in | ||||||
23 | the payment of life, endowment or annuity
benefits in | ||||||
24 | advance of the time they would otherwise be payable as | ||||||
25 | an indemnity
for a terminal illness; | ||||||
26 | (R) An amount equal to the amount of any federal or |
| |||||||
| |||||||
1 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
2 | (S) An amount, to the extent included in adjusted | ||||||
3 | gross income, equal
to the amount of a contribution | ||||||
4 | made in the taxable year on behalf of the
taxpayer to a | ||||||
5 | medical care savings account established under the | ||||||
6 | Medical Care
Savings Account Act or the Medical Care | ||||||
7 | Savings Account Act of 2000 to the
extent the | ||||||
8 | contribution is accepted by the account
administrator | ||||||
9 | as provided in that Act; | ||||||
10 | (T) An amount, to the extent included in adjusted | ||||||
11 | gross income, equal to
the amount of interest earned in | ||||||
12 | the taxable year on a medical care savings
account | ||||||
13 | established under the Medical Care Savings Account Act | ||||||
14 | or the Medical
Care Savings Account Act of 2000 on | ||||||
15 | behalf of the
taxpayer, other than interest added | ||||||
16 | pursuant to item (D-5) of this paragraph
(2); | ||||||
17 | (U) For one taxable year beginning on or after | ||||||
18 | January 1,
1994, an
amount equal to the total amount of | ||||||
19 | tax imposed and paid under subsections (a)
and (b) of | ||||||
20 | Section 201 of this Act on grant amounts received by | ||||||
21 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
22 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
23 | (V) Beginning with tax years ending on or after | ||||||
24 | December 31, 1995 and
ending with tax years ending on | ||||||
25 | or before December 31, 2004, an amount equal to
the | ||||||
26 | amount paid by a taxpayer who is a
self-employed |
| |||||||
| |||||||
1 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
2 | in a Subchapter S corporation for health insurance or | ||||||
3 | long-term
care insurance for that taxpayer or that | ||||||
4 | taxpayer's spouse or dependents, to
the extent that the | ||||||
5 | amount paid for that health insurance or long-term care
| ||||||
6 | insurance may be deducted under Section 213 of the | ||||||
7 | Internal Revenue Code, has not been deducted on the | ||||||
8 | federal income tax return of the taxpayer,
and does not | ||||||
9 | exceed the taxable income attributable to that | ||||||
10 | taxpayer's income,
self-employment income, or | ||||||
11 | Subchapter S corporation income; except that no
| ||||||
12 | deduction shall be allowed under this item (V) if the | ||||||
13 | taxpayer is eligible to
participate in any health | ||||||
14 | insurance or long-term care insurance plan of an
| ||||||
15 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
16 | amount of the health insurance and long-term care | ||||||
17 | insurance
subtracted under this item (V) shall be | ||||||
18 | determined by multiplying total
health insurance and | ||||||
19 | long-term care insurance premiums paid by the taxpayer
| ||||||
20 | times a number that represents the fractional | ||||||
21 | percentage of eligible medical
expenses under Section | ||||||
22 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
23 | deducted on the taxpayer's federal income tax return; | ||||||
24 | (W) For taxable years beginning on or after January | ||||||
25 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
26 | gross income
in the taxable year from amounts converted |
| |||||||
| |||||||
1 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
2 | exempt from the provisions of Section
250; | ||||||
3 | (X) For taxable year 1999 and thereafter, an amount | ||||||
4 | equal to the
amount of any (i) distributions, to the | ||||||
5 | extent includible in gross income for
federal income | ||||||
6 | tax purposes, made to the taxpayer because of his or | ||||||
7 | her status
as a victim of persecution for racial or | ||||||
8 | religious reasons by Nazi Germany or
any other Axis | ||||||
9 | regime or as an heir of the victim and (ii) items
of | ||||||
10 | income, to the extent
includible in gross income for | ||||||
11 | federal income tax purposes, attributable to,
derived | ||||||
12 | from or in any way related to assets stolen from, | ||||||
13 | hidden from, or
otherwise lost to a victim of
| ||||||
14 | persecution for racial or religious reasons by Nazi | ||||||
15 | Germany or any other Axis
regime immediately prior to, | ||||||
16 | during, and immediately after World War II,
including, | ||||||
17 | but
not limited to, interest on the proceeds receivable | ||||||
18 | as insurance
under policies issued to a victim of | ||||||
19 | persecution for racial or religious
reasons
by Nazi | ||||||
20 | Germany or any other Axis regime by European insurance | ||||||
21 | companies
immediately prior to and during World War II;
| ||||||
22 | provided, however, this subtraction from federal | ||||||
23 | adjusted gross income does not
apply to assets acquired | ||||||
24 | with such assets or with the proceeds from the sale of
| ||||||
25 | such assets; provided, further, this paragraph shall | ||||||
26 | only apply to a taxpayer
who was the first recipient of |
| |||||||
| |||||||
1 | such assets after their recovery and who is a
victim of | ||||||
2 | persecution for racial or religious reasons
by Nazi | ||||||
3 | Germany or any other Axis regime or as an heir of the | ||||||
4 | victim. The
amount of and the eligibility for any | ||||||
5 | public assistance, benefit, or
similar entitlement is | ||||||
6 | not affected by the inclusion of items (i) and (ii) of
| ||||||
7 | this paragraph in gross income for federal income tax | ||||||
8 | purposes.
This paragraph is exempt from the provisions | ||||||
9 | of Section 250; | ||||||
10 | (Y) For taxable years beginning on or after January | ||||||
11 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
12 | moneys contributed in the taxable year to a College | ||||||
13 | Savings Pool account under
Section 16.5 of the State | ||||||
14 | Treasurer Act, except that amounts excluded from
gross | ||||||
15 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
16 | Revenue Code
shall not be considered moneys | ||||||
17 | contributed under this subparagraph (Y). For taxable | ||||||
18 | years beginning on or after January 1, 2005, a maximum | ||||||
19 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
20 | College Savings Pool account under Section 16.5 of the
| ||||||
21 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
22 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
23 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
24 | Internal
Revenue Code shall not be considered moneys | ||||||
25 | contributed under this subparagraph
(Y). For purposes | ||||||
26 | of this subparagraph, contributions made by an |
| |||||||
| |||||||
1 | employer on behalf of an employee, or matching | ||||||
2 | contributions made by an employee, shall be treated as | ||||||
3 | made by the employee. This
subparagraph (Y) is exempt | ||||||
4 | from the provisions of Section 250; | ||||||
5 | (Z) For taxable years 2001 and thereafter, for the | ||||||
6 | taxable year in
which the bonus depreciation deduction
| ||||||
7 | is taken on the taxpayer's federal income tax return | ||||||
8 | under
subsection (k) of Section 168 of the Internal | ||||||
9 | Revenue Code and for each
applicable taxable year | ||||||
10 | thereafter, an amount equal to "x", where: | ||||||
11 | (1) "y" equals the amount of the depreciation | ||||||
12 | deduction taken for the
taxable year
on the | ||||||
13 | taxpayer's federal income tax return on property | ||||||
14 | for which the bonus
depreciation deduction
was | ||||||
15 | taken in any year under subsection (k) of Section | ||||||
16 | 168 of the Internal
Revenue Code, but not including | ||||||
17 | the bonus depreciation deduction; | ||||||
18 | (2) for taxable years ending on or before | ||||||
19 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
20 | and then divided by 70 (or "y"
multiplied by | ||||||
21 | 0.429); and | ||||||
22 | (3) for taxable years ending after December | ||||||
23 | 31, 2005: | ||||||
24 | (i) for property on which a bonus | ||||||
25 | depreciation deduction of 30% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
2 | 0.429); and | ||||||
3 | (ii) for property on which a bonus | ||||||
4 | depreciation deduction of 50% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 1.0. | ||||||
7 | The aggregate amount deducted under this | ||||||
8 | subparagraph in all taxable
years for any one piece of | ||||||
9 | property may not exceed the amount of the bonus
| ||||||
10 | depreciation deduction
taken on that property on the | ||||||
11 | taxpayer's federal income tax return under
subsection | ||||||
12 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
13 | subparagraph (Z) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of
property for which the | ||||||
17 | taxpayer was required in any taxable year to make an
| ||||||
18 | addition modification under subparagraph (D-15), then | ||||||
19 | an amount equal to that
addition modification.
| ||||||
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 required in any taxable year to make an addition | ||||||
25 | modification under subparagraph (D-15), then an amount | ||||||
26 | equal to that addition modification.
|
| |||||||
| |||||||
1 | The taxpayer is allowed to take the deduction under | ||||||
2 | this subparagraph
only once with respect to any one | ||||||
3 | piece of property. | ||||||
4 | This subparagraph (AA) is exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (BB) Any amount included in adjusted gross income, | ||||||
7 | other
than
salary,
received by a driver in a | ||||||
8 | ridesharing arrangement using a motor vehicle; | ||||||
9 | (CC) 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 that 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 that | ||||||
24 | addition modification. This subparagraph (CC) is | ||||||
25 | exempt from the provisions of Section 250; | ||||||
26 | (DD) 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 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-17) for | ||||||
17 | interest paid, accrued, or incurred, directly or | ||||||
18 | indirectly, to the same person. This subparagraph (DD) | ||||||
19 | is exempt from the provisions of Section 250; | ||||||
20 | (EE) 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(a)(2)(D-18) for | ||||||
11 | intangible expenses and costs paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to the same foreign | ||||||
13 | person. This subparagraph (EE) is exempt from the | ||||||
14 | provisions of Section 250; | ||||||
15 | (FF) An amount equal to any amount awarded to the | ||||||
16 | taxpayer during the taxable year by the Court of Claims | ||||||
17 | under subsection (c) of Section 8 of the Court of | ||||||
18 | Claims Act for time unjustly served in a State prison. | ||||||
19 | This subparagraph (FF) is exempt from the provisions of | ||||||
20 | Section 250; and | ||||||
21 | (GG) For taxable years ending on or after December | ||||||
22 | 31, 2011, in the case of a taxpayer who was required to | ||||||
23 | add back any insurance premiums under Section | ||||||
24 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
25 | that part of a reimbursement received from the | ||||||
26 | insurance company equal to the amount of the expense or |
| |||||||
| |||||||
1 | loss (including expenses incurred by the insurance | ||||||
2 | company) that would have been taken into account as a | ||||||
3 | deduction for federal income tax purposes if the | ||||||
4 | expense or loss had been uninsured. If a taxpayer makes | ||||||
5 | the election provided for by this subparagraph (GG), | ||||||
6 | the insurer to which the premiums were paid must add | ||||||
7 | back to income the amount subtracted by the taxpayer | ||||||
8 | pursuant to this subparagraph (GG). This subparagraph | ||||||
9 | (GG) is exempt from the provisions of Section 250.
| ||||||
10 | (b) Corporations. | ||||||
11 | (1) In general. In the case of a corporation, base | ||||||
12 | income means an
amount equal to the taxpayer's taxable | ||||||
13 | income for the taxable year as
modified by paragraph (2). | ||||||
14 | (2) Modifications. The taxable income referred to in | ||||||
15 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
16 | of the following amounts: | ||||||
17 | (A) An amount equal to all amounts paid or accrued | ||||||
18 | to the taxpayer
as interest and all distributions | ||||||
19 | received from regulated investment
companies during | ||||||
20 | the taxable year to the extent excluded from gross
| ||||||
21 | income in the computation of taxable income; | ||||||
22 | (B) An amount equal to the amount of tax imposed by | ||||||
23 | this Act to the
extent deducted from gross income in | ||||||
24 | the computation of taxable income
for the taxable year; | ||||||
25 | (C) In the case of a regulated investment company, |
| |||||||
| |||||||
1 | an amount equal to
the excess of (i) the net long-term | ||||||
2 | capital gain for the taxable year, over
(ii) the amount | ||||||
3 | of the capital gain dividends designated as such in | ||||||
4 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
5 | Revenue Code and any amount
designated under Section | ||||||
6 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
7 | attributable to the taxable year (this amendatory Act | ||||||
8 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
9 | law and is not a new
enactment); | ||||||
10 | (D) The amount of any net operating loss deduction | ||||||
11 | taken in arriving
at taxable income, other than a net | ||||||
12 | operating loss carried forward from a
taxable year | ||||||
13 | ending prior to December 31, 1986; | ||||||
14 | (E) For taxable years in which a net operating loss | ||||||
15 | carryback or
carryforward from a taxable year ending | ||||||
16 | prior to December 31, 1986 is an
element of taxable | ||||||
17 | income under paragraph (1) of subsection (e) or
| ||||||
18 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
19 | the amount by which
addition modifications other than | ||||||
20 | those provided by this subparagraph (E)
exceeded | ||||||
21 | subtraction modifications in such earlier taxable | ||||||
22 | year, with the
following limitations applied in the | ||||||
23 | order that they are listed: | ||||||
24 | (i) the addition modification relating to the | ||||||
25 | net operating loss
carried back or forward to the | ||||||
26 | taxable year from any taxable year ending
prior to |
| |||||||
| |||||||
1 | December 31, 1986 shall be reduced by the amount of | ||||||
2 | addition
modification under this subparagraph (E) | ||||||
3 | which related to that net operating
loss and which | ||||||
4 | was taken into account in calculating the base | ||||||
5 | income of an
earlier taxable year, and | ||||||
6 | (ii) the addition modification relating to the | ||||||
7 | net operating loss
carried back or forward to the | ||||||
8 | taxable year from any taxable year ending
prior to | ||||||
9 | December 31, 1986 shall not exceed the amount of | ||||||
10 | such carryback or
carryforward; | ||||||
11 | For taxable years in which there is a net operating | ||||||
12 | loss carryback or
carryforward from more than one other | ||||||
13 | taxable year ending prior to December
31, 1986, the | ||||||
14 | addition modification provided in this subparagraph | ||||||
15 | (E) shall
be the sum of the amounts computed | ||||||
16 | independently under the preceding
provisions of this | ||||||
17 | subparagraph (E) for each such taxable year; | ||||||
18 | (E-5) For taxable years ending after December 31, | ||||||
19 | 1997, an
amount equal to any eligible remediation costs | ||||||
20 | that the corporation
deducted in computing adjusted | ||||||
21 | gross income and for which the
corporation claims a | ||||||
22 | credit under subsection (l) of Section 201; | ||||||
23 | (E-10) For taxable years 2001 and thereafter, an | ||||||
24 | amount equal to the
bonus depreciation deduction taken | ||||||
25 | on the taxpayer's federal income tax return for the | ||||||
26 | taxable
year under subsection (k) of Section 168 of the |
| |||||||
| |||||||
1 | Internal Revenue Code; | ||||||
2 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
3 | or otherwise disposes of property for which the | ||||||
4 | taxpayer was required in any taxable year to
make an | ||||||
5 | addition modification under subparagraph (E-10), then | ||||||
6 | an amount equal
to the aggregate amount of the | ||||||
7 | deductions taken in all taxable
years under | ||||||
8 | subparagraph (T) with respect to that property. | ||||||
9 | If the taxpayer continues to own property through | ||||||
10 | the last day of the last tax year for which the | ||||||
11 | taxpayer may claim a depreciation deduction for | ||||||
12 | federal income tax purposes and for which the taxpayer | ||||||
13 | was allowed in any taxable year to make a subtraction | ||||||
14 | modification under subparagraph (T), then an amount | ||||||
15 | equal to that subtraction modification.
| ||||||
16 | The taxpayer is required to make the addition | ||||||
17 | modification under this
subparagraph
only once with | ||||||
18 | respect to any one piece of property; | ||||||
19 | (E-12) An amount equal to the amount otherwise | ||||||
20 | allowed as a deduction in computing base income for | ||||||
21 | interest paid, accrued, or incurred, directly or | ||||||
22 | indirectly, (i) for taxable years ending on or after | ||||||
23 | December 31, 2004, to a foreign person who would be a | ||||||
24 | member of the same unitary business group but for the | ||||||
25 | fact the foreign person's business activity outside | ||||||
26 | the United States is 80% or more of the foreign |
| |||||||
| |||||||
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. The addition modification | ||||||
9 | required by this subparagraph shall be reduced to the | ||||||
10 | extent that dividends were included in base income of | ||||||
11 | the unitary group for the same taxable year and | ||||||
12 | received by the taxpayer or by a member of the | ||||||
13 | taxpayer's unitary business group (including amounts | ||||||
14 | included in gross income pursuant to Sections 951 | ||||||
15 | through 964 of the Internal Revenue Code and amounts | ||||||
16 | included in gross income under Section 78 of the | ||||||
17 | Internal Revenue Code) with respect to the stock of the | ||||||
18 | same person to whom the interest was paid, accrued, or | ||||||
19 | incurred.
| ||||||
20 | This paragraph shall not apply to the following:
| ||||||
21 | (i) an item of interest paid, accrued, or | ||||||
22 | incurred, directly or indirectly, to a person who | ||||||
23 | is subject in a foreign country or state, other | ||||||
24 | than a state which requires mandatory unitary | ||||||
25 | reporting, to a tax on or measured by net income | ||||||
26 | with respect to such interest; or |
| |||||||
| |||||||
1 | (ii) an item of interest paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to a person if | ||||||
3 | the taxpayer can establish, based on a | ||||||
4 | preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person, during the same taxable | ||||||
7 | year, paid, accrued, or incurred, the interest | ||||||
8 | to a person that is not a related member, and | ||||||
9 | (b) the transaction giving rise to the | ||||||
10 | interest expense between the taxpayer and the | ||||||
11 | person did not have as a principal purpose the | ||||||
12 | avoidance of Illinois income tax, and is paid | ||||||
13 | pursuant to a contract or agreement that | ||||||
14 | reflects an arm's-length interest rate and | ||||||
15 | terms; or
| ||||||
16 | (iii) the taxpayer can establish, based on | ||||||
17 | clear and convincing evidence, that the interest | ||||||
18 | paid, accrued, or incurred relates to a contract or | ||||||
19 | agreement entered into at arm's-length rates and | ||||||
20 | terms and the principal purpose for the payment is | ||||||
21 | not federal or Illinois tax avoidance; or
| ||||||
22 | (iv) an item of interest paid, accrued, or | ||||||
23 | incurred, directly or indirectly, to a person if | ||||||
24 | the taxpayer establishes by clear and convincing | ||||||
25 | evidence that the adjustments are unreasonable; or | ||||||
26 | if the taxpayer and the Director agree in writing |
| |||||||
| |||||||
1 | to the application or use of an alternative method | ||||||
2 | of apportionment under Section 304(f).
| ||||||
3 | Nothing in this subsection shall preclude the | ||||||
4 | Director from making any other adjustment | ||||||
5 | otherwise allowed under Section 404 of this Act for | ||||||
6 | any tax year beginning after the effective date of | ||||||
7 | this amendment provided such adjustment is made | ||||||
8 | pursuant to regulation adopted by the Department | ||||||
9 | and such regulations provide methods and standards | ||||||
10 | by which the Department will utilize its authority | ||||||
11 | under Section 404 of this Act;
| ||||||
12 | (E-13) An amount equal to the amount of intangible | ||||||
13 | expenses and costs otherwise allowed as a deduction in | ||||||
14 | computing base income, and that were paid, accrued, or | ||||||
15 | incurred, directly or indirectly, (i) for taxable | ||||||
16 | years ending on or after December 31, 2004, to a | ||||||
17 | foreign person who would be a member of the same | ||||||
18 | unitary business group but for the fact that the | ||||||
19 | foreign person's business activity outside the United | ||||||
20 | States is 80% or more of that person's total business | ||||||
21 | activity and (ii) for taxable years ending on or after | ||||||
22 | December 31, 2008, to a person who would be a member of | ||||||
23 | the same unitary business group but for the fact that | ||||||
24 | the person is prohibited under Section 1501(a)(27) | ||||||
25 | from being included in the unitary business group | ||||||
26 | because he or she is ordinarily required to apportion |
| |||||||
| |||||||
1 | business income under different subsections of Section | ||||||
2 | 304. The addition modification required by this | ||||||
3 | subparagraph shall be reduced to the extent that | ||||||
4 | dividends were included in base income of the unitary | ||||||
5 | group for the same taxable year and received by the | ||||||
6 | taxpayer or by a member of the taxpayer's unitary | ||||||
7 | business group (including amounts included in gross | ||||||
8 | income pursuant to Sections 951 through 964 of the | ||||||
9 | Internal Revenue Code and amounts included in gross | ||||||
10 | income under Section 78 of the Internal Revenue Code) | ||||||
11 | with respect to the stock of the same person to whom | ||||||
12 | the intangible expenses and costs were directly or | ||||||
13 | indirectly paid, incurred, or accrued. The preceding | ||||||
14 | sentence shall not apply to the extent that the same | ||||||
15 | dividends caused a reduction to the addition | ||||||
16 | modification required under Section 203(b)(2)(E-12) of | ||||||
17 | this Act.
As used in this subparagraph, the term | ||||||
18 | "intangible expenses and costs" includes (1) expenses, | ||||||
19 | losses, and costs for, or related to, the direct or | ||||||
20 | indirect acquisition, use, maintenance or management, | ||||||
21 | ownership, sale, exchange, or any other disposition of | ||||||
22 | intangible property; (2) losses incurred, directly or | ||||||
23 | indirectly, from factoring transactions or discounting | ||||||
24 | transactions; (3) royalty, patent, technical, and | ||||||
25 | copyright fees; (4) licensing fees; and (5) other | ||||||
26 | similar expenses and costs.
For purposes of this |
| |||||||
| |||||||
1 | subparagraph, "intangible property" includes patents, | ||||||
2 | patent applications, trade names, trademarks, service | ||||||
3 | marks, copyrights, mask works, trade secrets, and | ||||||
4 | similar types of intangible assets. | ||||||
5 | This paragraph shall not apply to the following: | ||||||
6 | (i) any item of intangible expenses or costs | ||||||
7 | paid, accrued, or incurred, directly or | ||||||
8 | indirectly, from a transaction with a person who is | ||||||
9 | subject in a foreign country or state, other than a | ||||||
10 | state which requires mandatory unitary reporting, | ||||||
11 | to a tax on or measured by net income with respect | ||||||
12 | to such item; or | ||||||
13 | (ii) any item of intangible expense or cost | ||||||
14 | paid, accrued, or incurred, directly or | ||||||
15 | indirectly, if the taxpayer can establish, based | ||||||
16 | on a preponderance of the evidence, both of the | ||||||
17 | following: | ||||||
18 | (a) the person during the same taxable | ||||||
19 | year paid, accrued, or incurred, the | ||||||
20 | intangible expense or cost to a person that is | ||||||
21 | not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | intangible expense or cost between the | ||||||
24 | taxpayer and the person did not have as a | ||||||
25 | principal purpose the avoidance of Illinois | ||||||
26 | income tax, and is paid pursuant to a contract |
| |||||||
| |||||||
1 | or agreement that reflects arm's-length terms; | ||||||
2 | or | ||||||
3 | (iii) any item of intangible expense or cost | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, from a transaction with a person if the | ||||||
6 | taxpayer establishes by clear and convincing | ||||||
7 | evidence, that the adjustments are unreasonable; | ||||||
8 | or if the taxpayer and the Director agree in | ||||||
9 | writing to the application or use of an alternative | ||||||
10 | method 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 | (E-14) For taxable years ending on or after | ||||||
21 | December 31, 2008, an amount equal to the amount of | ||||||
22 | insurance premium expenses and costs otherwise allowed | ||||||
23 | as a deduction in computing base income, and that were | ||||||
24 | paid, accrued, or incurred, directly or indirectly, to | ||||||
25 | a person who would be a member of the same unitary | ||||||
26 | business group but for the fact that the person is |
| |||||||
| |||||||
1 | prohibited under Section 1501(a)(27) from being | ||||||
2 | included in the unitary business group because he or | ||||||
3 | she is ordinarily required to apportion business | ||||||
4 | income under different subsections of Section 304. The | ||||||
5 | addition modification required by this subparagraph | ||||||
6 | shall be reduced to the extent that dividends were | ||||||
7 | included in base income of the unitary group for the | ||||||
8 | same taxable year and received by the taxpayer or by a | ||||||
9 | member of the taxpayer's unitary business group | ||||||
10 | (including amounts included in gross income under | ||||||
11 | Sections 951 through 964 of the Internal Revenue Code | ||||||
12 | and amounts included in gross income under Section 78 | ||||||
13 | of the Internal Revenue Code) with respect to the stock | ||||||
14 | of the same person to whom the premiums and costs were | ||||||
15 | directly or indirectly paid, incurred, or accrued. The | ||||||
16 | preceding sentence does not apply to the extent that | ||||||
17 | the same dividends caused a reduction to the addition | ||||||
18 | modification required under Section 203(b)(2)(E-12) or | ||||||
19 | Section 203(b)(2)(E-13) of this Act;
| ||||||
20 | (E-15) For taxable years beginning after December | ||||||
21 | 31, 2008, any deduction for dividends paid by a captive | ||||||
22 | real estate investment trust that is allowed to a real | ||||||
23 | estate investment trust under Section 857(b)(2)(B) of | ||||||
24 | the Internal Revenue Code for dividends paid; | ||||||
25 | (E-16) An amount equal to the credit allowable to | ||||||
26 | the taxpayer under Section 218(a) of this Act, |
| |||||||
| |||||||
1 | determined without regard to Section 218(c) of this | ||||||
2 | Act; | ||||||
3 | (E-17) For taxable years ending on or after | ||||||
4 | December 31, 2017, an amount equal to the deduction | ||||||
5 | allowed under Section 199 of the Internal Revenue Code | ||||||
6 | for the taxable year; | ||||||
7 | and by deducting from the total so obtained the sum of the | ||||||
8 | following
amounts: | ||||||
9 | (F) An amount equal to the amount of any tax | ||||||
10 | imposed by this Act
which was refunded to the taxpayer | ||||||
11 | and included in such total for the
taxable year; | ||||||
12 | (G) An amount equal to any amount included in such | ||||||
13 | total under
Section 78 of the Internal Revenue Code; | ||||||
14 | (H) In the case of a regulated investment company, | ||||||
15 | an amount equal
to the amount of exempt interest | ||||||
16 | dividends as defined in subsection (b)
(5) of Section | ||||||
17 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
18 | for the taxable year; | ||||||
19 | (I) With the exception of any amounts subtracted | ||||||
20 | under subparagraph
(J),
an amount equal to the sum of | ||||||
21 | all amounts disallowed as
deductions by (i) Sections | ||||||
22 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
23 | interest expense by Section 291(a)(3) of the Internal | ||||||
24 | Revenue Code, and all amounts of expenses allocable to | ||||||
25 | interest and
disallowed as deductions by Section | ||||||
26 | 265(a)(1) of the Internal Revenue Code;
and (ii) for |
| |||||||
| |||||||
1 | taxable years
ending on or after August 13, 1999, | ||||||
2 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
3 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
4 | for tax years ending on or after December 31, 2011, | ||||||
5 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
6 | of the Internal Revenue Code and, for taxable years | ||||||
7 | ending on or after December 31, 2008, any amount | ||||||
8 | included in gross income under Section 87 of the | ||||||
9 | Internal Revenue Code and the policyholders' share of | ||||||
10 | tax-exempt interest of a life insurance company under | ||||||
11 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
12 | the case of a life insurance company with gross income | ||||||
13 | from a decrease in reserves for the tax year) or | ||||||
14 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
15 | the case of a life insurance company allowed a | ||||||
16 | deduction for an increase in reserves for the tax | ||||||
17 | year); the
provisions of this
subparagraph are exempt | ||||||
18 | from the provisions of Section 250; | ||||||
19 | (J) An amount equal to all amounts included in such | ||||||
20 | total which are
exempt from taxation by this State | ||||||
21 | either by reason of its statutes or
Constitution
or by | ||||||
22 | reason of the Constitution, treaties or statutes of the | ||||||
23 | United States;
provided that, in the case of any | ||||||
24 | statute of this State that exempts income
derived from | ||||||
25 | bonds or other obligations from the tax imposed under | ||||||
26 | this Act,
the amount exempted shall be the interest net |
| |||||||
| |||||||
1 | of bond premium amortization; | ||||||
2 | (K) 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 (K) is exempt from the | ||||||
9 | provisions of Section 250; | ||||||
10 | (L) An amount equal to those dividends included in | ||||||
11 | such total that
were paid by a corporation that | ||||||
12 | conducts business operations in a federally
designated | ||||||
13 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
14 | High Impact
Business located in Illinois; provided | ||||||
15 | that dividends eligible for the
deduction provided in | ||||||
16 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
17 | shall not be eligible for the deduction provided under | ||||||
18 | this subparagraph
(L); | ||||||
19 | (M) For any taxpayer that is a financial | ||||||
20 | organization within the meaning
of Section 304(c) of | ||||||
21 | this Act, an amount included in such total as interest
| ||||||
22 | income from a loan or loans made by such taxpayer to a | ||||||
23 | borrower, to the extent
that such a loan is secured by | ||||||
24 | property which is eligible for the River Edge | ||||||
25 | Redevelopment Zone Investment Credit. To determine the | ||||||
26 | portion of a loan or loans that is
secured by property |
| |||||||
| |||||||
1 | eligible for a Section 201(f) investment
credit to the | ||||||
2 | borrower, the entire principal amount of the loan or | ||||||
3 | loans
between the taxpayer and the borrower should be | ||||||
4 | divided into the basis of the
Section 201(f) investment | ||||||
5 | credit property which secures the
loan or loans, using | ||||||
6 | for this purpose the original basis of such property on
| ||||||
7 | the date that it was placed in service in the River | ||||||
8 | Edge Redevelopment Zone. The subtraction modification | ||||||
9 | available to taxpayer in any
year under this subsection | ||||||
10 | shall be that portion of the total interest paid
by the | ||||||
11 | borrower with respect to such loan attributable to the | ||||||
12 | eligible
property as calculated under the previous | ||||||
13 | sentence. This subparagraph (M) is exempt from the | ||||||
14 | provisions of Section 250; | ||||||
15 | (M-1) For any taxpayer that is a financial | ||||||
16 | organization within the
meaning of Section 304(c) of | ||||||
17 | this Act, an amount included in such total as
interest | ||||||
18 | income from a loan or loans made by such taxpayer to a | ||||||
19 | borrower,
to the extent that such a loan is secured by | ||||||
20 | property which is eligible for
the High Impact Business | ||||||
21 | Investment Credit. To determine the portion of a
loan | ||||||
22 | or loans that is secured by property eligible for a | ||||||
23 | Section 201(h) investment credit to the borrower, the | ||||||
24 | entire principal amount of
the loan or loans between | ||||||
25 | the taxpayer and the borrower should be divided into
| ||||||
26 | the basis of the Section 201(h) investment credit |
| |||||||
| |||||||
1 | property which
secures the loan or loans, using for | ||||||
2 | this purpose the original basis of such
property on the | ||||||
3 | date that it was placed in service in a federally | ||||||
4 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
5 | Illinois. No taxpayer that is
eligible for the | ||||||
6 | deduction provided in subparagraph (M) of paragraph | ||||||
7 | (2) of
this subsection shall be eligible for the | ||||||
8 | deduction provided under this
subparagraph (M-1). The | ||||||
9 | subtraction modification available to taxpayers in
any | ||||||
10 | year under this subsection shall be that portion of the | ||||||
11 | total interest
paid by the borrower with respect to | ||||||
12 | such loan attributable to the eligible
property as | ||||||
13 | calculated under the previous sentence; | ||||||
14 | (N) Two times any contribution made during the | ||||||
15 | taxable year to a
designated zone organization to the | ||||||
16 | extent that the contribution (i)
qualifies as a | ||||||
17 | charitable contribution under subsection (c) of | ||||||
18 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
19 | by its terms, be used for a
project approved by the | ||||||
20 | Department of Commerce and Economic Opportunity under | ||||||
21 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
22 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
23 | This subparagraph (N) is exempt from the provisions of | ||||||
24 | Section 250; | ||||||
25 | (O) An amount equal to: (i) 85% for taxable years | ||||||
26 | ending on or before
December 31, 1992, or, a percentage |
| |||||||
| |||||||
1 | equal to the percentage allowable under
Section | ||||||
2 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
3 | taxable years ending
after December 31, 1992, of the | ||||||
4 | amount by which dividends included in taxable
income | ||||||
5 | and received from a corporation that is not created or | ||||||
6 | organized under
the laws of the United States or any | ||||||
7 | state or political subdivision thereof,
including, for | ||||||
8 | taxable years ending on or after December 31, 1988, | ||||||
9 | dividends
received or deemed received or paid or deemed | ||||||
10 | paid under Sections 951 through
965 of the Internal | ||||||
11 | Revenue Code, exceed the amount of the modification
| ||||||
12 | provided under subparagraph (G) of paragraph (2) of | ||||||
13 | this subsection (b) which
is related to such dividends, | ||||||
14 | and including, for taxable years ending on or after | ||||||
15 | December 31, 2008, dividends received from a captive | ||||||
16 | real estate investment trust; plus (ii) 100% of the | ||||||
17 | amount by which dividends,
included in taxable income | ||||||
18 | and received, including, for taxable years ending on
or | ||||||
19 | after December 31, 1988, dividends received or deemed | ||||||
20 | received or paid or
deemed paid under Sections 951 | ||||||
21 | through 964 of the Internal Revenue Code and including, | ||||||
22 | for taxable years ending on or after December 31, 2008, | ||||||
23 | dividends received from a captive real estate | ||||||
24 | investment trust, from
any such corporation specified | ||||||
25 | in clause (i) that would but for the provisions
of | ||||||
26 | Section 1504 (b) (3) of the Internal Revenue Code be |
| |||||||
| |||||||
1 | treated as a member of
the affiliated group which | ||||||
2 | includes the dividend recipient, exceed the amount
of | ||||||
3 | the modification provided under subparagraph (G) of | ||||||
4 | paragraph (2) of this
subsection (b) which is related | ||||||
5 | to such dividends. This subparagraph (O) is exempt from | ||||||
6 | the provisions of Section 250 of this Act; | ||||||
7 | (P) An amount equal to any contribution made to a | ||||||
8 | job training project
established pursuant to the Tax | ||||||
9 | Increment Allocation Redevelopment Act; | ||||||
10 | (Q) An amount equal to the amount of the deduction | ||||||
11 | used to compute the
federal income tax credit for | ||||||
12 | restoration of substantial amounts held under
claim of | ||||||
13 | right for the taxable year pursuant to Section 1341 of | ||||||
14 | the
Internal Revenue Code; | ||||||
15 | (R) On and after July 20, 1999, in the case of an | ||||||
16 | attorney-in-fact with respect to whom an
interinsurer | ||||||
17 | or a reciprocal insurer has made the election under | ||||||
18 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
19 | 835, an amount equal to the excess, if
any, of the | ||||||
20 | amounts paid or incurred by that interinsurer or | ||||||
21 | reciprocal insurer
in the taxable year to the | ||||||
22 | attorney-in-fact over the deduction allowed to that
| ||||||
23 | interinsurer or reciprocal insurer with respect to the | ||||||
24 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
25 | Revenue Code for the taxable year; the provisions of | ||||||
26 | this subparagraph are exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250; | ||||||
2 | (S) For taxable years ending on or after December | ||||||
3 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
4 | amount equal to all amounts of income allocable to a
| ||||||
5 | shareholder subject to the Personal Property Tax | ||||||
6 | Replacement Income Tax imposed
by subsections (c) and | ||||||
7 | (d) of Section 201 of this Act, including amounts
| ||||||
8 | allocable to organizations exempt from federal income | ||||||
9 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
10 | Code. This subparagraph (S) is exempt from
the | ||||||
11 | provisions of Section 250; | ||||||
12 | (T) For taxable years 2001 and thereafter, for the | ||||||
13 | taxable year in
which the bonus depreciation deduction
| ||||||
14 | is taken on the taxpayer's federal income tax return | ||||||
15 | under
subsection (k) of Section 168 of the Internal | ||||||
16 | Revenue Code and for each
applicable taxable year | ||||||
17 | thereafter, an amount equal to "x", where: | ||||||
18 | (1) "y" equals the amount of the depreciation | ||||||
19 | deduction taken for the
taxable year
on the | ||||||
20 | taxpayer's federal income tax return on property | ||||||
21 | for which the bonus
depreciation deduction
was | ||||||
22 | taken in any year under subsection (k) of Section | ||||||
23 | 168 of the Internal
Revenue Code, but not including | ||||||
24 | the bonus depreciation deduction; | ||||||
25 | (2) for taxable years ending on or before | ||||||
26 | December 31, 2005, "x" equals "y" multiplied by 30 |
| |||||||
| |||||||
1 | and then divided by 70 (or "y"
multiplied by | ||||||
2 | 0.429); and | ||||||
3 | (3) for taxable years ending after December | ||||||
4 | 31, 2005: | ||||||
5 | (i) for property on which a bonus | ||||||
6 | depreciation deduction of 30% of the adjusted | ||||||
7 | basis was taken, "x" equals "y" multiplied by | ||||||
8 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
9 | 0.429); and | ||||||
10 | (ii) for property on which a bonus | ||||||
11 | depreciation deduction of 50% of the adjusted | ||||||
12 | basis was taken, "x" equals "y" multiplied by | ||||||
13 | 1.0. | ||||||
14 | The aggregate amount deducted under this | ||||||
15 | subparagraph in all taxable
years for any one piece of | ||||||
16 | property may not exceed the amount of the bonus
| ||||||
17 | depreciation deduction
taken on that property on the | ||||||
18 | taxpayer's federal income tax return under
subsection | ||||||
19 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
20 | subparagraph (T) is exempt from the provisions of | ||||||
21 | Section 250; | ||||||
22 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
23 | otherwise disposes of
property for which the taxpayer | ||||||
24 | was required in any taxable year to make an
addition | ||||||
25 | modification under subparagraph (E-10), then an amount | ||||||
26 | equal to that
addition modification. |
| |||||||
| |||||||
1 | If the taxpayer continues to own property through | ||||||
2 | the last day of the last tax year for which the | ||||||
3 | taxpayer may claim a depreciation deduction for | ||||||
4 | federal income tax purposes and for which the taxpayer | ||||||
5 | was required in any taxable year to make an addition | ||||||
6 | modification under subparagraph (E-10), then an amount | ||||||
7 | equal to that addition modification.
| ||||||
8 | The taxpayer is allowed to take the deduction under | ||||||
9 | this subparagraph
only once with respect to any one | ||||||
10 | piece of property. | ||||||
11 | This subparagraph (U) is exempt from the | ||||||
12 | provisions of Section 250; | ||||||
13 | (V) The amount of: (i) any interest income (net of | ||||||
14 | the deductions allocable thereto) taken into account | ||||||
15 | for the taxable year with respect to a transaction with | ||||||
16 | a taxpayer that is required to make an addition | ||||||
17 | modification with respect to such transaction under | ||||||
18 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
19 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
20 | the amount of such addition modification,
(ii) any | ||||||
21 | income from intangible property (net of the deductions | ||||||
22 | allocable thereto) taken into account for the taxable | ||||||
23 | year with respect to a transaction with a taxpayer that | ||||||
24 | is required to make an addition modification with | ||||||
25 | respect to such transaction under Section | ||||||
26 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
| |||||||
| |||||||
1 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
2 | addition modification, and (iii) any insurance premium | ||||||
3 | income (net of deductions allocable thereto) taken | ||||||
4 | into account for the taxable year with respect to a | ||||||
5 | transaction with a taxpayer that is required to make an | ||||||
6 | addition modification with respect to such transaction | ||||||
7 | under Section 203(a)(2)(D-19), Section | ||||||
8 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
9 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
10 | addition modification. This subparagraph (V) is exempt | ||||||
11 | from the provisions of Section 250;
| ||||||
12 | (W) An amount equal to the interest income taken | ||||||
13 | into account for the taxable year (net of the | ||||||
14 | 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-12) for | ||||||
3 | interest paid, accrued, or incurred, directly or | ||||||
4 | indirectly, to the same person. This subparagraph (W) | ||||||
5 | is exempt from the provisions of Section 250;
| ||||||
6 | (X) An amount equal to the income from intangible | ||||||
7 | property taken into account for the taxable year (net | ||||||
8 | of the 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(b)(2)(E-13) for | ||||||
23 | intangible expenses and costs paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to the same foreign | ||||||
25 | person. This subparagraph (X) is exempt from the | ||||||
26 | provisions of Section 250;
|
| |||||||
| |||||||
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(b)(2)(E-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; and | ||||||
16 | (Z) The difference between the nondeductible | ||||||
17 | controlled foreign corporation dividends under Section | ||||||
18 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
19 | income of the taxpayer, computed without regard to | ||||||
20 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
21 | without regard to any net operating loss deduction. | ||||||
22 | This subparagraph (Z) is exempt from the provisions of | ||||||
23 | Section 250. | ||||||
24 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
25 | "gross income"
in the case of a life insurance company, for | ||||||
26 | tax years ending on and after
December 31, 1994,
and prior |
| |||||||
| |||||||
1 | to December 31, 2011, shall mean the gross investment | ||||||
2 | income for the taxable year and, for tax years ending on or | ||||||
3 | after December 31, 2011, shall mean all amounts included in | ||||||
4 | life insurance gross income under Section 803(a)(3) of the | ||||||
5 | Internal Revenue Code.
| ||||||
6 | (c) Trusts and estates. | ||||||
7 | (1) In general. In the case of a trust or estate, base | ||||||
8 | income means
an amount equal to the taxpayer's taxable | ||||||
9 | income for the taxable year as
modified by paragraph (2). | ||||||
10 | (2) Modifications. Subject to the provisions of | ||||||
11 | paragraph (3), the
taxable income referred to in paragraph | ||||||
12 | (1) shall be modified by adding
thereto the sum of the | ||||||
13 | following amounts: | ||||||
14 | (A) An amount equal to all amounts paid or accrued | ||||||
15 | to the taxpayer
as interest or dividends during the | ||||||
16 | taxable year to the extent excluded
from gross income | ||||||
17 | in the computation of taxable income; | ||||||
18 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
19 | trust which, under
its governing instrument, is | ||||||
20 | required to distribute all of its income
currently, | ||||||
21 | $300; and (iii) any other trust, $100, but in each such | ||||||
22 | case,
only to the extent such amount was deducted in | ||||||
23 | the computation of
taxable income; | ||||||
24 | (C) An amount equal to the amount of tax imposed by | ||||||
25 | this Act to the
extent deducted from gross income in |
| |||||||
| |||||||
1 | the computation of taxable income
for the taxable year; | ||||||
2 | (D) The amount of any net operating loss deduction | ||||||
3 | taken in arriving at
taxable income, other than a net | ||||||
4 | operating loss carried forward from a
taxable year | ||||||
5 | ending prior to December 31, 1986; | ||||||
6 | (E) For taxable years in which a net operating loss | ||||||
7 | carryback or
carryforward from a taxable year ending | ||||||
8 | prior to December 31, 1986 is an
element of taxable | ||||||
9 | income under paragraph (1) of subsection (e) or | ||||||
10 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
11 | the amount by which addition
modifications other than | ||||||
12 | those provided by this subparagraph (E) exceeded
| ||||||
13 | subtraction modifications in such taxable year, with | ||||||
14 | the following limitations
applied in the order that | ||||||
15 | they are listed: | ||||||
16 | (i) the addition modification relating to the | ||||||
17 | net operating loss
carried back or forward to the | ||||||
18 | taxable year from any taxable year ending
prior to | ||||||
19 | December 31, 1986 shall be reduced by the amount of | ||||||
20 | addition
modification under this subparagraph (E) | ||||||
21 | which related to that net
operating loss and which | ||||||
22 | was taken into account in calculating the base
| ||||||
23 | income of an earlier taxable year, and | ||||||
24 | (ii) the addition modification relating to the | ||||||
25 | net operating loss
carried back or forward to the | ||||||
26 | taxable year from any taxable year ending
prior to |
| |||||||
| |||||||
1 | December 31, 1986 shall not exceed the amount of | ||||||
2 | such carryback or
carryforward; | ||||||
3 | For taxable years in which there is a net operating | ||||||
4 | loss carryback or
carryforward from more than one other | ||||||
5 | taxable year ending prior to December
31, 1986, the | ||||||
6 | addition modification provided in this subparagraph | ||||||
7 | (E) shall
be the sum of the amounts computed | ||||||
8 | independently under the preceding
provisions of this | ||||||
9 | subparagraph (E) for each such taxable year; | ||||||
10 | (F) For taxable years ending on or after January 1, | ||||||
11 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
12 | Section 164 of the Internal Revenue
Code if the trust | ||||||
13 | or estate is claiming the same tax for purposes of the
| ||||||
14 | Illinois foreign tax credit under Section 601 of this | ||||||
15 | Act; | ||||||
16 | (G) An amount equal to the amount of the capital | ||||||
17 | gain deduction
allowable under the Internal Revenue | ||||||
18 | Code, to the extent deducted from
gross income in the | ||||||
19 | computation of taxable income; | ||||||
20 | (G-5) For taxable years ending after December 31, | ||||||
21 | 1997, an
amount equal to any eligible remediation costs | ||||||
22 | that the trust or estate
deducted in computing adjusted | ||||||
23 | gross income and for which the trust
or estate claims a | ||||||
24 | credit under subsection (l) of Section 201; | ||||||
25 | (G-10) For taxable years 2001 and thereafter, an | ||||||
26 | amount equal to the
bonus depreciation deduction taken |
| |||||||
| |||||||
1 | on the taxpayer's federal income tax return for the | ||||||
2 | taxable
year under subsection (k) of Section 168 of the | ||||||
3 | Internal Revenue Code; and | ||||||
4 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
5 | or otherwise disposes of property for which the | ||||||
6 | taxpayer was required in any taxable year to
make an | ||||||
7 | addition modification under subparagraph (G-10), then | ||||||
8 | an amount equal
to the aggregate amount of the | ||||||
9 | deductions taken in all taxable
years under | ||||||
10 | subparagraph (R) with respect to that property. | ||||||
11 | If the taxpayer continues to own property through | ||||||
12 | the last day of the last tax year for which the | ||||||
13 | taxpayer may claim a depreciation deduction for | ||||||
14 | federal income tax purposes and for which the taxpayer | ||||||
15 | was allowed in any taxable year to make a subtraction | ||||||
16 | modification under subparagraph (R), then an amount | ||||||
17 | equal to that subtraction modification.
| ||||||
18 | The taxpayer is required to make the addition | ||||||
19 | modification under this
subparagraph
only once with | ||||||
20 | respect to any one piece of property; | ||||||
21 | (G-12) An amount equal to the amount otherwise | ||||||
22 | allowed as a deduction in computing base income for | ||||||
23 | interest paid, accrued, or incurred, directly or | ||||||
24 | indirectly, (i) for taxable years ending on or after | ||||||
25 | December 31, 2004, to a foreign person who would be a | ||||||
26 | member of the same unitary business group but for the |
| |||||||
| |||||||
1 | fact that the foreign person's business activity | ||||||
2 | outside the United States is 80% or more of the foreign | ||||||
3 | person's total business activity and (ii) for taxable | ||||||
4 | years ending on or after December 31, 2008, to a person | ||||||
5 | who would be a member of the same unitary business | ||||||
6 | group but for the fact that the person is prohibited | ||||||
7 | under Section 1501(a)(27) from being included in the | ||||||
8 | unitary business group because he or she is ordinarily | ||||||
9 | required to apportion business income under different | ||||||
10 | subsections of Section 304. The addition modification | ||||||
11 | required by this subparagraph shall be reduced to the | ||||||
12 | extent that dividends were included in base income of | ||||||
13 | the unitary group for the same taxable year and | ||||||
14 | received by the taxpayer or by a member of the | ||||||
15 | taxpayer's unitary business group (including amounts | ||||||
16 | included in gross income pursuant to Sections 951 | ||||||
17 | through 964 of the Internal Revenue Code and amounts | ||||||
18 | included in gross income under Section 78 of the | ||||||
19 | Internal Revenue Code) with respect to the stock of the | ||||||
20 | same person to whom the interest was paid, accrued, or | ||||||
21 | incurred.
| ||||||
22 | This paragraph shall not apply to the following:
| ||||||
23 | (i) an item of interest paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to a person who | ||||||
25 | is subject in a foreign country or state, other | ||||||
26 | than a state which requires mandatory unitary |
| |||||||
| |||||||
1 | reporting, to a tax on or measured by net income | ||||||
2 | with respect to such interest; or | ||||||
3 | (ii) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person if | ||||||
5 | the taxpayer can establish, based on a | ||||||
6 | preponderance of the evidence, both of the | ||||||
7 | following: | ||||||
8 | (a) the person, during the same taxable | ||||||
9 | year, paid, accrued, or incurred, the interest | ||||||
10 | to a person that is not a related member, and | ||||||
11 | (b) the transaction giving rise to the | ||||||
12 | interest expense between the taxpayer and the | ||||||
13 | person did not have as a principal purpose the | ||||||
14 | avoidance of Illinois income tax, and is paid | ||||||
15 | pursuant to a contract or agreement that | ||||||
16 | reflects an arm's-length interest rate and | ||||||
17 | terms; or
| ||||||
18 | (iii) the taxpayer can establish, based on | ||||||
19 | clear and convincing evidence, that the interest | ||||||
20 | paid, accrued, or incurred relates to a contract or | ||||||
21 | agreement entered into at arm's-length rates and | ||||||
22 | terms and the principal purpose for the payment is | ||||||
23 | not federal or Illinois tax avoidance; or
| ||||||
24 | (iv) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person if | ||||||
26 | the taxpayer establishes by clear and convincing |
| |||||||
| |||||||
1 | evidence that the adjustments are unreasonable; or | ||||||
2 | if the taxpayer and the Director agree in writing | ||||||
3 | to the application or use of an alternative method | ||||||
4 | of apportionment under Section 304(f).
| ||||||
5 | Nothing in this subsection shall preclude the | ||||||
6 | Director from making any other adjustment | ||||||
7 | otherwise allowed under Section 404 of this Act for | ||||||
8 | any tax year beginning after the effective date of | ||||||
9 | this amendment provided such adjustment is made | ||||||
10 | pursuant to regulation adopted by the Department | ||||||
11 | and such regulations provide methods and standards | ||||||
12 | by which the Department will utilize its authority | ||||||
13 | under Section 404 of this Act;
| ||||||
14 | (G-13) An amount equal to the amount of intangible | ||||||
15 | expenses and costs otherwise allowed as a deduction in | ||||||
16 | computing base income, and that were paid, accrued, or | ||||||
17 | incurred, directly or indirectly, (i) for taxable | ||||||
18 | years ending on or after December 31, 2004, to a | ||||||
19 | foreign person who would be a member of the same | ||||||
20 | unitary business group but for the fact that the | ||||||
21 | foreign person's business activity outside the United | ||||||
22 | States is 80% or more of that person's total business | ||||||
23 | activity and (ii) for taxable years ending on or after | ||||||
24 | December 31, 2008, to a person who would be a member of | ||||||
25 | the same unitary business group but for the fact that | ||||||
26 | the person is prohibited under Section 1501(a)(27) |
| |||||||
| |||||||
1 | from being included in the unitary business group | ||||||
2 | because he or she is ordinarily required to apportion | ||||||
3 | business income under different subsections of Section | ||||||
4 | 304. The addition modification required by this | ||||||
5 | subparagraph shall be reduced to the extent that | ||||||
6 | dividends were included in base income of the unitary | ||||||
7 | group for the same taxable year and received by the | ||||||
8 | taxpayer or by a member of the taxpayer's unitary | ||||||
9 | business group (including amounts included in gross | ||||||
10 | income pursuant to Sections 951 through 964 of the | ||||||
11 | Internal Revenue Code and amounts included in gross | ||||||
12 | income under Section 78 of the Internal Revenue Code) | ||||||
13 | with respect to the stock of the same person to whom | ||||||
14 | the intangible expenses and costs were directly or | ||||||
15 | indirectly paid, incurred, or accrued. The preceding | ||||||
16 | sentence shall not apply to the extent that the same | ||||||
17 | dividends caused a reduction to the addition | ||||||
18 | modification required under Section 203(c)(2)(G-12) of | ||||||
19 | this Act. As used in this subparagraph, the term | ||||||
20 | "intangible expenses and costs" includes: (1) | ||||||
21 | expenses, losses, and costs for or related to the | ||||||
22 | direct or indirect acquisition, use, maintenance or | ||||||
23 | management, ownership, sale, exchange, or any other | ||||||
24 | disposition of intangible property; (2) losses | ||||||
25 | incurred, directly or indirectly, from factoring | ||||||
26 | transactions or discounting transactions; (3) royalty, |
| |||||||
| |||||||
1 | patent, technical, and copyright fees; (4) licensing | ||||||
2 | fees; and (5) other similar expenses and costs. For | ||||||
3 | purposes of this subparagraph, "intangible property" | ||||||
4 | includes patents, patent applications, trade names, | ||||||
5 | trademarks, service marks, copyrights, mask works, | ||||||
6 | trade secrets, and similar types of intangible assets. | ||||||
7 | This paragraph shall not apply to the following: | ||||||
8 | (i) any item of intangible expenses or costs | ||||||
9 | paid, accrued, or incurred, directly or | ||||||
10 | indirectly, from a transaction with a person who is | ||||||
11 | subject in a foreign country or state, other than a | ||||||
12 | state which requires mandatory unitary reporting, | ||||||
13 | to a tax on or measured by net income with respect | ||||||
14 | to such item; or | ||||||
15 | (ii) any item of intangible expense or cost | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, if the taxpayer can establish, based | ||||||
18 | on a preponderance of the evidence, both of the | ||||||
19 | following: | ||||||
20 | (a) the person during the same taxable | ||||||
21 | year paid, accrued, or incurred, the | ||||||
22 | intangible expense or cost to a person that is | ||||||
23 | not a related member, and | ||||||
24 | (b) the transaction giving rise to the | ||||||
25 | intangible expense or cost between the | ||||||
26 | taxpayer and the person did not have as a |
| |||||||
| |||||||
1 | principal purpose the avoidance of Illinois | ||||||
2 | income tax, and is paid pursuant to a contract | ||||||
3 | or agreement that reflects arm's-length terms; | ||||||
4 | or | ||||||
5 | (iii) any item of intangible expense or cost | ||||||
6 | paid, accrued, or incurred, directly or | ||||||
7 | indirectly, from a transaction with a person if the | ||||||
8 | taxpayer establishes by clear and convincing | ||||||
9 | evidence, that the adjustments are unreasonable; | ||||||
10 | or if the taxpayer and the Director agree in | ||||||
11 | writing to the application or use of an alternative | ||||||
12 | method of apportionment under Section 304(f);
| ||||||
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;
| ||||||
22 | (G-14) For taxable years ending on or after | ||||||
23 | December 31, 2008, an amount equal to the amount of | ||||||
24 | insurance premium expenses and costs otherwise allowed | ||||||
25 | as a deduction in computing base income, and that were | ||||||
26 | paid, accrued, or incurred, directly or indirectly, to |
| |||||||
| |||||||
1 | a person who would be a member of the same unitary | ||||||
2 | business group but for the fact that the person is | ||||||
3 | prohibited under Section 1501(a)(27) from being | ||||||
4 | included in the unitary business group because he or | ||||||
5 | she is ordinarily required to apportion business | ||||||
6 | income under different subsections of Section 304. The | ||||||
7 | addition modification required by this subparagraph | ||||||
8 | shall be reduced to the extent that dividends were | ||||||
9 | included in base income of the unitary group for the | ||||||
10 | same taxable year and received by the taxpayer or by a | ||||||
11 | member of the taxpayer's unitary business group | ||||||
12 | (including amounts included in gross income under | ||||||
13 | Sections 951 through 964 of the Internal Revenue Code | ||||||
14 | and amounts included in gross income under Section 78 | ||||||
15 | of the Internal Revenue Code) with respect to the stock | ||||||
16 | of the same person to whom the premiums and costs were | ||||||
17 | directly or indirectly paid, incurred, or accrued. The | ||||||
18 | preceding sentence does not apply to the extent that | ||||||
19 | the same dividends caused a reduction to the addition | ||||||
20 | modification required under Section 203(c)(2)(G-12) or | ||||||
21 | Section 203(c)(2)(G-13) of this Act; | ||||||
22 | (G-15) An amount equal to the credit allowable to | ||||||
23 | the taxpayer under Section 218(a) of this Act, | ||||||
24 | determined without regard to Section 218(c) of this | ||||||
25 | Act; | ||||||
26 | (G-16) For taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2017, an amount equal to the deduction | ||||||
2 | allowed under Section 199 of the Internal Revenue Code | ||||||
3 | for the taxable year; | ||||||
4 | and by deducting from the total so obtained the sum of the | ||||||
5 | following
amounts: | ||||||
6 | (H) An amount equal to all amounts included in such | ||||||
7 | total pursuant
to the provisions of Sections 402(a), | ||||||
8 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
9 | Internal Revenue Code or included in such total as
| ||||||
10 | distributions under the provisions of any retirement | ||||||
11 | or disability plan for
employees of any governmental | ||||||
12 | agency or unit, or retirement payments to
retired | ||||||
13 | partners, which payments are excluded in computing net | ||||||
14 | earnings
from self employment by Section 1402 of the | ||||||
15 | Internal Revenue Code and
regulations adopted pursuant | ||||||
16 | thereto; | ||||||
17 | (I) The valuation limitation amount; | ||||||
18 | (J) An amount equal to the amount of any tax | ||||||
19 | imposed by this Act
which was refunded to the taxpayer | ||||||
20 | and included in such total for the
taxable year; | ||||||
21 | (K) An amount equal to all amounts included in | ||||||
22 | taxable income as
modified by subparagraphs (A), (B), | ||||||
23 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
24 | taxation by this State either by reason of its statutes | ||||||
25 | or
Constitution
or by reason of the Constitution, | ||||||
26 | treaties or statutes of the United States;
provided |
| |||||||
| |||||||
1 | that, in the case of any statute of this State that | ||||||
2 | exempts income
derived from bonds or other obligations | ||||||
3 | from the tax imposed under this Act,
the amount | ||||||
4 | exempted shall be the interest net of bond premium | ||||||
5 | amortization; | ||||||
6 | (L) With the exception of any amounts subtracted | ||||||
7 | under subparagraph
(K),
an amount equal to the sum of | ||||||
8 | all amounts disallowed as
deductions by (i) Sections | ||||||
9 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
10 | and all amounts of expenses allocable
to interest and | ||||||
11 | disallowed as deductions by Section 265(1) of the | ||||||
12 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
13 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
14 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
15 | Code, plus, (iii) for taxable years ending on or after | ||||||
16 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
17 | Revenue Code and, for taxable years ending on or after | ||||||
18 | December 31, 2008, any amount included in gross income | ||||||
19 | under Section 87 of the Internal Revenue Code; the | ||||||
20 | provisions of this
subparagraph are exempt from the | ||||||
21 | provisions of Section 250; | ||||||
22 | (M) An amount equal to those dividends included in | ||||||
23 | such total
which were paid by a corporation which | ||||||
24 | conducts business operations in a River Edge | ||||||
25 | Redevelopment Zone or zones created under the River | ||||||
26 | Edge Redevelopment Zone Act and
conducts substantially |
| |||||||
| |||||||
1 | all of its operations in a River Edge Redevelopment | ||||||
2 | Zone or zones. This subparagraph (M) is exempt from the | ||||||
3 | provisions of Section 250; | ||||||
4 | (N) An amount equal to any contribution made to a | ||||||
5 | job training
project established pursuant to the Tax | ||||||
6 | Increment Allocation
Redevelopment Act; | ||||||
7 | (O) An amount equal to those dividends included in | ||||||
8 | such total
that were paid by a corporation that | ||||||
9 | conducts business operations in a
federally designated | ||||||
10 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
11 | High Impact Business located in Illinois; provided | ||||||
12 | that dividends eligible
for the deduction provided in | ||||||
13 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
14 | shall not be eligible for the deduction provided under | ||||||
15 | this
subparagraph (O); | ||||||
16 | (P) 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 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
22 | equal to the
amount of any
(i) distributions, to the | ||||||
23 | extent includible in gross income for
federal income | ||||||
24 | tax purposes, made to the taxpayer because of
his or | ||||||
25 | her status as a victim of
persecution for racial or | ||||||
26 | religious reasons by Nazi Germany or any other Axis
|
| |||||||
| |||||||
1 | regime or as an heir of the victim and (ii) items
of | ||||||
2 | income, to the extent
includible in gross income for | ||||||
3 | federal income tax purposes, attributable to,
derived | ||||||
4 | from or in any way related to assets stolen from, | ||||||
5 | hidden from, or
otherwise lost to a victim of
| ||||||
6 | persecution for racial or religious reasons by Nazi
| ||||||
7 | Germany or any other Axis regime
immediately prior to, | ||||||
8 | during, and immediately after World War II, including,
| ||||||
9 | but
not limited to, interest on the proceeds receivable | ||||||
10 | as insurance
under policies issued to a victim of | ||||||
11 | persecution for racial or religious
reasons by Nazi | ||||||
12 | Germany or any other Axis regime by European insurance
| ||||||
13 | companies
immediately prior to and during World War II;
| ||||||
14 | provided, however, this subtraction from federal | ||||||
15 | adjusted gross income does not
apply to assets acquired | ||||||
16 | with such assets or with the proceeds from the sale of
| ||||||
17 | such assets; provided, further, this paragraph shall | ||||||
18 | only apply to a taxpayer
who was the first recipient of | ||||||
19 | such assets after their recovery and who is a
victim of
| ||||||
20 | persecution for racial or religious reasons
by Nazi | ||||||
21 | Germany or any other Axis regime or as an heir of the | ||||||
22 | victim. The
amount of and the eligibility for any | ||||||
23 | public assistance, benefit, or
similar entitlement is | ||||||
24 | not affected by the inclusion of items (i) and (ii) of
| ||||||
25 | this paragraph in gross income for federal income tax | ||||||
26 | purposes.
This paragraph is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 250; | ||||||
2 | (R) For taxable years 2001 and thereafter, for the | ||||||
3 | taxable year in
which the bonus depreciation deduction
| ||||||
4 | is taken on the taxpayer's federal income tax return | ||||||
5 | under
subsection (k) of Section 168 of the Internal | ||||||
6 | Revenue Code and for each
applicable taxable year | ||||||
7 | thereafter, an amount equal to "x", where: | ||||||
8 | (1) "y" equals the amount of the depreciation | ||||||
9 | deduction taken for the
taxable year
on the | ||||||
10 | taxpayer's federal income tax return on property | ||||||
11 | for which the bonus
depreciation deduction
was | ||||||
12 | taken in any year under subsection (k) of Section | ||||||
13 | 168 of the Internal
Revenue Code, but not including | ||||||
14 | the bonus depreciation deduction; | ||||||
15 | (2) for taxable years ending on or before | ||||||
16 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
17 | and then divided by 70 (or "y"
multiplied by | ||||||
18 | 0.429); and | ||||||
19 | (3) for taxable years ending after December | ||||||
20 | 31, 2005: | ||||||
21 | (i) for property on which a bonus | ||||||
22 | depreciation deduction of 30% of the adjusted | ||||||
23 | basis was taken, "x" equals "y" multiplied by | ||||||
24 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
25 | 0.429); and | ||||||
26 | (ii) for property on which a bonus |
| |||||||
| |||||||
1 | depreciation deduction of 50% of the adjusted | ||||||
2 | basis was taken, "x" equals "y" multiplied by | ||||||
3 | 1.0. | ||||||
4 | The aggregate amount deducted under this | ||||||
5 | subparagraph in all taxable
years for any one piece of | ||||||
6 | property may not exceed the amount of the bonus
| ||||||
7 | depreciation deduction
taken on that property on the | ||||||
8 | taxpayer's federal income tax return under
subsection | ||||||
9 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
10 | subparagraph (R) is exempt from the provisions of | ||||||
11 | Section 250; | ||||||
12 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
13 | otherwise disposes of
property for which the taxpayer | ||||||
14 | was required in any taxable year to make an
addition | ||||||
15 | modification under subparagraph (G-10), then an amount | ||||||
16 | equal to that
addition modification. | ||||||
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 required in any taxable year to make an addition | ||||||
22 | modification under subparagraph (G-10), then an amount | ||||||
23 | equal to that addition modification.
| ||||||
24 | The taxpayer is allowed to take the deduction under | ||||||
25 | this subparagraph
only once with respect to any one | ||||||
26 | piece of property. |
| |||||||
| |||||||
1 | This subparagraph (S) is exempt from the | ||||||
2 | provisions of Section 250; | ||||||
3 | (T) The amount of (i) any interest income (net of | ||||||
4 | the deductions allocable thereto) taken into account | ||||||
5 | for the taxable year with respect to a transaction with | ||||||
6 | a taxpayer that is required to make an addition | ||||||
7 | modification with respect to such transaction under | ||||||
8 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
9 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
10 | the amount of such addition modification and
(ii) any | ||||||
11 | income from intangible property (net of the deductions | ||||||
12 | allocable thereto) taken into account for the taxable | ||||||
13 | year with respect to a transaction with a taxpayer that | ||||||
14 | is required to make an addition modification with | ||||||
15 | respect to such transaction under Section | ||||||
16 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
17 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
18 | addition modification. This subparagraph (T) is exempt | ||||||
19 | from the provisions of Section 250;
| ||||||
20 | (U) An amount equal to the interest income taken | ||||||
21 | into account for the taxable year (net of the | ||||||
22 | 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 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-12) for | ||||||
11 | interest paid, accrued, or incurred, directly or | ||||||
12 | indirectly, to the same person. This subparagraph (U) | ||||||
13 | is exempt from the provisions of Section 250; | ||||||
14 | (V) An amount equal to the income from intangible | ||||||
15 | property taken into account for the taxable year (net | ||||||
16 | of the deductions allocable thereto) with respect to | ||||||
17 | transactions with (i) a foreign person who would be a | ||||||
18 | member of the taxpayer's unitary business group but for | ||||||
19 | the fact that the foreign person's business activity | ||||||
20 | outside the United States is 80% or more of that | ||||||
21 | person's total business activity and (ii) for taxable | ||||||
22 | years ending on or after December 31, 2008, to a person | ||||||
23 | who would be a member of the same unitary business | ||||||
24 | group but for the fact that the person is prohibited | ||||||
25 | under Section 1501(a)(27) from being included in the | ||||||
26 | unitary business group because he or she is ordinarily |
| |||||||
| |||||||
1 | required to apportion business income under different | ||||||
2 | subsections of Section 304, but not to exceed the | ||||||
3 | addition modification required to be made for the same | ||||||
4 | taxable year under Section 203(c)(2)(G-13) for | ||||||
5 | intangible expenses and costs paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to the same foreign | ||||||
7 | person. This subparagraph (V) is exempt from the | ||||||
8 | provisions of Section 250;
| ||||||
9 | (W) in the case of an estate, an amount equal to | ||||||
10 | all amounts included in such total pursuant to the | ||||||
11 | provisions of Section 111 of the Internal Revenue Code | ||||||
12 | as a recovery of items previously deducted by the | ||||||
13 | decedent from adjusted gross income in the computation | ||||||
14 | of taxable income. This subparagraph (W) is exempt from | ||||||
15 | Section 250; | ||||||
16 | (X) an amount equal to the refund included in such | ||||||
17 | total of any tax deducted for federal income tax | ||||||
18 | purposes, to the extent that deduction was added back | ||||||
19 | under subparagraph (F). This subparagraph (X) is | ||||||
20 | exempt from the provisions of Section 250; and | ||||||
21 | (Y) For taxable years ending on or after December | ||||||
22 | 31, 2011, in the case of a taxpayer who was required to | ||||||
23 | add back any insurance premiums under Section | ||||||
24 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
25 | that part of a reimbursement received from the | ||||||
26 | insurance company equal to the amount of the expense or |
| |||||||
| |||||||
1 | loss (including expenses incurred by the insurance | ||||||
2 | company) that would have been taken into account as a | ||||||
3 | deduction for federal income tax purposes if the | ||||||
4 | expense or loss had been uninsured. If a taxpayer makes | ||||||
5 | the election provided for by this subparagraph (Y), the | ||||||
6 | insurer to which the premiums were paid must add back | ||||||
7 | to income the amount subtracted by the taxpayer | ||||||
8 | pursuant to this subparagraph (Y). This subparagraph | ||||||
9 | (Y) is exempt from the provisions of Section 250. | ||||||
10 | (3) Limitation. The amount of any modification | ||||||
11 | otherwise required
under this subsection shall, under | ||||||
12 | regulations prescribed by the
Department, be adjusted by | ||||||
13 | any amounts included therein which were
properly paid, | ||||||
14 | credited, or required to be distributed, or permanently set
| ||||||
15 | aside for charitable purposes pursuant to Internal Revenue | ||||||
16 | Code Section
642(c) during the taxable year.
| ||||||
17 | (d) Partnerships. | ||||||
18 | (1) In general. In the case of a partnership, base | ||||||
19 | income means an
amount equal to the taxpayer's taxable | ||||||
20 | income for the taxable year as
modified by paragraph (2). | ||||||
21 | (2) Modifications. The taxable income referred to in | ||||||
22 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
23 | of the following amounts: | ||||||
24 | (A) An amount equal to all amounts paid or accrued | ||||||
25 | to the taxpayer as
interest or dividends during the |
| |||||||
| |||||||
1 | taxable year to the extent excluded from
gross income | ||||||
2 | 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 for | ||||||
5 | the taxable year; | ||||||
6 | (C) The amount of deductions allowed to the | ||||||
7 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
8 | Revenue Code in calculating its taxable income; | ||||||
9 | (D) An amount equal to the amount of the capital | ||||||
10 | gain deduction
allowable under the Internal Revenue | ||||||
11 | Code, to the extent deducted from
gross income in the | ||||||
12 | computation of taxable income; | ||||||
13 | (D-5) For taxable years 2001 and thereafter, an | ||||||
14 | amount equal to the
bonus depreciation deduction taken | ||||||
15 | on the taxpayer's federal income tax return for the | ||||||
16 | taxable
year under subsection (k) of Section 168 of the | ||||||
17 | Internal Revenue Code; | ||||||
18 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
19 | or otherwise disposes of
property for which the | ||||||
20 | taxpayer was required in any taxable year to make an
| ||||||
21 | addition modification under subparagraph (D-5), then | ||||||
22 | an amount equal to the
aggregate amount of the | ||||||
23 | deductions taken in all taxable years
under | ||||||
24 | subparagraph (O) with respect to that property. | ||||||
25 | If the taxpayer continues to own property through | ||||||
26 | the last day of the last tax year for which the |
| |||||||
| |||||||
1 | taxpayer may claim a depreciation deduction for | ||||||
2 | federal income tax purposes and for which the taxpayer | ||||||
3 | was allowed in any taxable year to make a subtraction | ||||||
4 | modification under subparagraph (O), then an amount | ||||||
5 | equal to that subtraction modification.
| ||||||
6 | The taxpayer is required to make the addition | ||||||
7 | modification under this
subparagraph
only once with | ||||||
8 | respect to any one piece of property; | ||||||
9 | (D-7) An amount equal to the amount otherwise | ||||||
10 | allowed as a deduction in computing base income for | ||||||
11 | interest paid, accrued, or incurred, directly or | ||||||
12 | indirectly, (i) for taxable years ending on or after | ||||||
13 | December 31, 2004, to a foreign person who would be a | ||||||
14 | member of the same unitary business group but for the | ||||||
15 | fact the foreign person's business activity outside | ||||||
16 | the United States is 80% or more of the foreign | ||||||
17 | person's total business activity and (ii) for taxable | ||||||
18 | years ending on or after December 31, 2008, to a person | ||||||
19 | who would be a member of the same unitary business | ||||||
20 | group but for the fact that the person is prohibited | ||||||
21 | under Section 1501(a)(27) from being included in the | ||||||
22 | unitary business group because he or she is ordinarily | ||||||
23 | required to apportion business income under different | ||||||
24 | subsections of Section 304. The addition modification | ||||||
25 | required by this subparagraph shall be reduced to the | ||||||
26 | extent that dividends were included in base income of |
| |||||||
| |||||||
1 | the unitary group for the same taxable year and | ||||||
2 | received by the taxpayer or by a member of the | ||||||
3 | taxpayer's unitary business group (including amounts | ||||||
4 | included in gross income pursuant to Sections 951 | ||||||
5 | through 964 of the Internal Revenue Code and amounts | ||||||
6 | included in gross income under Section 78 of the | ||||||
7 | Internal Revenue Code) with respect to the stock of the | ||||||
8 | same person to whom the interest was paid, accrued, or | ||||||
9 | incurred.
| ||||||
10 | This paragraph shall not apply to the following:
| ||||||
11 | (i) an item of interest paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to a person who | ||||||
13 | is subject in a foreign country or state, other | ||||||
14 | than a state which requires mandatory unitary | ||||||
15 | reporting, to a tax on or measured by net income | ||||||
16 | with respect to such interest; or | ||||||
17 | (ii) an item of interest paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to a person if | ||||||
19 | the taxpayer can establish, based on a | ||||||
20 | preponderance of the evidence, both of the | ||||||
21 | following: | ||||||
22 | (a) the person, during the same taxable | ||||||
23 | year, paid, accrued, or incurred, the interest | ||||||
24 | to a person that is not a related member, and | ||||||
25 | (b) the transaction giving rise to the | ||||||
26 | interest expense between the taxpayer and the |
| |||||||
| |||||||
1 | person did not have as a principal purpose the | ||||||
2 | avoidance of Illinois income tax, and is paid | ||||||
3 | pursuant to a contract or agreement that | ||||||
4 | reflects an arm's-length interest rate and | ||||||
5 | terms; or
| ||||||
6 | (iii) the taxpayer can establish, based on | ||||||
7 | clear and convincing evidence, that the interest | ||||||
8 | paid, accrued, or incurred relates to a contract or | ||||||
9 | agreement entered into at arm's-length rates and | ||||||
10 | terms and the principal purpose for the payment is | ||||||
11 | not federal or Illinois tax avoidance; or
| ||||||
12 | (iv) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person if | ||||||
14 | the taxpayer establishes by clear and convincing | ||||||
15 | evidence that the adjustments are unreasonable; or | ||||||
16 | if the taxpayer and the Director agree in writing | ||||||
17 | to the application or use of an alternative method | ||||||
18 | 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; and
| ||||||
2 | (D-8) An amount equal to the amount of intangible | ||||||
3 | expenses and costs otherwise allowed as a deduction in | ||||||
4 | computing base income, and that were paid, accrued, or | ||||||
5 | incurred, directly or indirectly, (i) for taxable | ||||||
6 | years ending on or after December 31, 2004, to a | ||||||
7 | foreign person who would be a member of the same | ||||||
8 | unitary business group but for the fact that the | ||||||
9 | foreign person's business activity outside the United | ||||||
10 | States is 80% or more of that person's total business | ||||||
11 | activity and (ii) for taxable years ending on or after | ||||||
12 | December 31, 2008, to a person who would be a member of | ||||||
13 | the same unitary business group but for the fact that | ||||||
14 | the person is prohibited under Section 1501(a)(27) | ||||||
15 | from being included in the unitary business group | ||||||
16 | because he or she is ordinarily required to apportion | ||||||
17 | business income under different subsections of Section | ||||||
18 | 304. The addition modification required by this | ||||||
19 | subparagraph shall be reduced to the extent that | ||||||
20 | dividends were included in base income of the unitary | ||||||
21 | group for the same taxable year and received by the | ||||||
22 | taxpayer or by a member of the taxpayer's unitary | ||||||
23 | business group (including amounts included in gross | ||||||
24 | income pursuant to Sections 951 through 964 of the | ||||||
25 | Internal Revenue Code and amounts included in gross | ||||||
26 | income under Section 78 of the Internal Revenue Code) |
| |||||||
| |||||||
1 | with respect to the stock of the same person to whom | ||||||
2 | the intangible expenses and costs were directly or | ||||||
3 | indirectly paid, incurred or accrued. The preceding | ||||||
4 | sentence shall not apply to the extent that the same | ||||||
5 | dividends caused a reduction to the addition | ||||||
6 | modification required under Section 203(d)(2)(D-7) of | ||||||
7 | this Act. As used in this subparagraph, the term | ||||||
8 | "intangible expenses and costs" includes (1) expenses, | ||||||
9 | losses, and costs for, or related to, the direct or | ||||||
10 | indirect acquisition, use, maintenance or management, | ||||||
11 | ownership, sale, exchange, or any other disposition of | ||||||
12 | intangible property; (2) losses incurred, directly or | ||||||
13 | indirectly, from factoring transactions or discounting | ||||||
14 | transactions; (3) royalty, patent, technical, and | ||||||
15 | copyright fees; (4) licensing fees; and (5) other | ||||||
16 | similar expenses and costs. For purposes of this | ||||||
17 | subparagraph, "intangible property" includes patents, | ||||||
18 | patent applications, trade names, trademarks, service | ||||||
19 | marks, copyrights, mask works, trade secrets, and | ||||||
20 | similar types of intangible assets; | ||||||
21 | This paragraph shall not apply to the following: | ||||||
22 | (i) any item of intangible expenses or costs | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, from a transaction with a person who is | ||||||
25 | subject in a foreign country or state, other than a | ||||||
26 | state which requires mandatory unitary reporting, |
| |||||||
| |||||||
1 | to a tax on or measured by net income with respect | ||||||
2 | to such item; or | ||||||
3 | (ii) any item of intangible expense or cost | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, if the taxpayer can establish, based | ||||||
6 | on a preponderance of the evidence, both of the | ||||||
7 | following: | ||||||
8 | (a) the person during the same taxable | ||||||
9 | year paid, accrued, or incurred, the | ||||||
10 | intangible expense or cost to a person that is | ||||||
11 | not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | intangible expense or cost between the | ||||||
14 | taxpayer and the person did not have as a | ||||||
15 | principal purpose the avoidance of Illinois | ||||||
16 | income tax, and is paid pursuant to a contract | ||||||
17 | or agreement that reflects arm's-length terms; | ||||||
18 | or | ||||||
19 | (iii) any item of intangible expense or cost | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, from a transaction with a person if the | ||||||
22 | taxpayer establishes by clear and convincing | ||||||
23 | evidence, that the adjustments are unreasonable; | ||||||
24 | or if the taxpayer and the Director agree in | ||||||
25 | writing to the application or use of an alternative | ||||||
26 | method of apportionment under Section 304(f);
|
| |||||||
| |||||||
1 | Nothing in this subsection shall preclude the | ||||||
2 | Director from making any other adjustment | ||||||
3 | otherwise allowed under Section 404 of this Act for | ||||||
4 | any tax year beginning after the effective date of | ||||||
5 | this amendment provided such adjustment is made | ||||||
6 | pursuant to regulation adopted by the Department | ||||||
7 | and such regulations provide methods and standards | ||||||
8 | by which the Department will utilize its authority | ||||||
9 | under Section 404 of this Act;
| ||||||
10 | (D-9) For taxable years ending on or after December | ||||||
11 | 31, 2008, an amount equal to the amount of insurance | ||||||
12 | premium expenses and costs otherwise allowed as a | ||||||
13 | deduction in computing base income, and that were paid, | ||||||
14 | accrued, or incurred, directly or indirectly, to a | ||||||
15 | person who would be a member of the same unitary | ||||||
16 | business group but for the fact that the person is | ||||||
17 | prohibited under Section 1501(a)(27) from being | ||||||
18 | included in the unitary business group because he or | ||||||
19 | she is ordinarily required to apportion business | ||||||
20 | income under different subsections of Section 304. The | ||||||
21 | addition modification required by this subparagraph | ||||||
22 | shall be reduced to the extent that dividends were | ||||||
23 | included in base income of the unitary group for the | ||||||
24 | same taxable year and received by the taxpayer or by a | ||||||
25 | member of the taxpayer's unitary business group | ||||||
26 | (including amounts included in gross income under |
| |||||||
| |||||||
1 | Sections 951 through 964 of the Internal Revenue Code | ||||||
2 | and amounts included in gross income under Section 78 | ||||||
3 | of the Internal Revenue Code) with respect to the stock | ||||||
4 | of the same person to whom the premiums and costs were | ||||||
5 | directly or indirectly paid, incurred, or accrued. The | ||||||
6 | preceding sentence does not apply to the extent that | ||||||
7 | the same dividends caused a reduction to the addition | ||||||
8 | modification required under Section 203(d)(2)(D-7) or | ||||||
9 | Section 203(d)(2)(D-8) of this Act; | ||||||
10 | (D-10) An amount equal to the credit allowable to | ||||||
11 | the taxpayer under Section 218(a) of this Act, | ||||||
12 | determined without regard to Section 218(c) of this | ||||||
13 | Act; | ||||||
14 | (D-11) For taxable years ending on or after | ||||||
15 | December 31, 2017, an amount equal to the deduction | ||||||
16 | allowed under Section 199 of the Internal Revenue Code | ||||||
17 | for the taxable year; | ||||||
18 | and by deducting from the total so obtained the following | ||||||
19 | amounts: | ||||||
20 | (E) The valuation limitation amount; | ||||||
21 | (F) An amount equal to the amount of any tax | ||||||
22 | imposed by this Act which
was refunded to the taxpayer | ||||||
23 | and included in such total for the taxable year; | ||||||
24 | (G) An amount equal to all amounts included in | ||||||
25 | taxable income as
modified by subparagraphs (A), (B), | ||||||
26 | (C) and (D) which are exempt from
taxation by this |
| |||||||
| |||||||
1 | State either by reason of its statutes or Constitution | ||||||
2 | or
by reason of
the Constitution, treaties or statutes | ||||||
3 | of the 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 | (H) Any income of the partnership which | ||||||
9 | constitutes personal service
income as defined in | ||||||
10 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
11 | in effect December 31, 1981) or a reasonable allowance | ||||||
12 | for compensation
paid or accrued for services rendered | ||||||
13 | by partners to the partnership,
whichever is greater; | ||||||
14 | this subparagraph (H) is exempt from the provisions of | ||||||
15 | Section 250; | ||||||
16 | (I) An amount equal to all amounts of income | ||||||
17 | distributable to an entity
subject to the Personal | ||||||
18 | Property Tax Replacement Income Tax imposed by
| ||||||
19 | subsections (c) and (d) of Section 201 of this Act | ||||||
20 | including amounts
distributable to organizations | ||||||
21 | exempt from federal income tax by reason of
Section | ||||||
22 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
23 | (I) is exempt from the provisions of Section 250; | ||||||
24 | (J) With the exception of any amounts subtracted | ||||||
25 | under subparagraph
(G),
an amount equal to the sum of | ||||||
26 | all amounts disallowed as deductions
by (i) Sections |
| |||||||
| |||||||
1 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
2 | and all amounts of expenses allocable to
interest and | ||||||
3 | disallowed as deductions by Section 265(1) of the | ||||||
4 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
5 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
6 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
7 | Code, plus, (iii) for taxable years ending on or after | ||||||
8 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
9 | Revenue Code and, for taxable years ending on or after | ||||||
10 | December 31, 2008, any amount included in gross income | ||||||
11 | under Section 87 of the Internal Revenue Code; the | ||||||
12 | provisions of this
subparagraph are exempt from the | ||||||
13 | provisions of Section 250; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total which were
paid by a corporation which | ||||||
16 | conducts business operations in a River Edge | ||||||
17 | Redevelopment Zone or zones created under the River | ||||||
18 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
19 | all of its operations
from a River Edge Redevelopment | ||||||
20 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
21 | provisions of Section 250; | ||||||
22 | (L) An amount equal to any contribution made to a | ||||||
23 | job training project
established pursuant to the Real | ||||||
24 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
25 | (M) An amount equal to those dividends included in | ||||||
26 | such total
that were paid by a corporation that |
| |||||||
| |||||||
1 | conducts business operations in a
federally designated | ||||||
2 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
3 | High Impact Business located in Illinois; provided | ||||||
4 | that dividends eligible
for the deduction provided in | ||||||
5 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
6 | shall not be eligible for the deduction provided under | ||||||
7 | this
subparagraph (M); | ||||||
8 | (N) An amount equal to the amount of the deduction | ||||||
9 | used to compute the
federal income tax credit for | ||||||
10 | restoration of substantial amounts held under
claim of | ||||||
11 | right for the taxable year pursuant to Section 1341 of | ||||||
12 | the
Internal Revenue Code; | ||||||
13 | (O) For taxable years 2001 and thereafter, for the | ||||||
14 | taxable year in
which the bonus depreciation deduction
| ||||||
15 | is taken on the taxpayer's federal income tax return | ||||||
16 | under
subsection (k) of Section 168 of the Internal | ||||||
17 | Revenue Code and for each
applicable taxable year | ||||||
18 | thereafter, an amount equal to "x", where: | ||||||
19 | (1) "y" equals the amount of the depreciation | ||||||
20 | deduction taken for the
taxable year
on the | ||||||
21 | taxpayer's federal income tax return on property | ||||||
22 | for which the bonus
depreciation deduction
was | ||||||
23 | taken in any year under subsection (k) of Section | ||||||
24 | 168 of the Internal
Revenue Code, but not including | ||||||
25 | the bonus depreciation deduction; | ||||||
26 | (2) for taxable years ending on or before |
| |||||||
| |||||||
1 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
2 | and then divided by 70 (or "y"
multiplied by | ||||||
3 | 0.429); and | ||||||
4 | (3) for taxable years ending after December | ||||||
5 | 31, 2005: | ||||||
6 | (i) for property on which a bonus | ||||||
7 | depreciation deduction of 30% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
10 | 0.429); and | ||||||
11 | (ii) for property on which a bonus | ||||||
12 | depreciation deduction of 50% of the adjusted | ||||||
13 | basis was taken, "x" equals "y" multiplied by | ||||||
14 | 1.0. | ||||||
15 | The aggregate amount deducted under this | ||||||
16 | subparagraph in all taxable
years for any one piece of | ||||||
17 | property may not exceed the amount of the bonus
| ||||||
18 | depreciation deduction
taken on that property on the | ||||||
19 | taxpayer's federal income tax return under
subsection | ||||||
20 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
21 | subparagraph (O) is exempt from the provisions of | ||||||
22 | Section 250; | ||||||
23 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
24 | otherwise disposes of
property for which the taxpayer | ||||||
25 | was required in any taxable year to make an
addition | ||||||
26 | modification under subparagraph (D-5), then an amount |
| |||||||
| |||||||
1 | equal to that
addition modification. | ||||||
2 | If the taxpayer continues to own property through | ||||||
3 | the last day of the last tax year for which the | ||||||
4 | taxpayer may claim a depreciation deduction for | ||||||
5 | federal income tax purposes and for which the taxpayer | ||||||
6 | was required in any taxable year to make an addition | ||||||
7 | modification under subparagraph (D-5), then an amount | ||||||
8 | equal to that addition modification.
| ||||||
9 | The taxpayer is allowed to take the deduction under | ||||||
10 | this subparagraph
only once with respect to any one | ||||||
11 | piece of property. | ||||||
12 | This subparagraph (P) is exempt from the | ||||||
13 | provisions of Section 250; | ||||||
14 | (Q) The amount of (i) any interest income (net of | ||||||
15 | the deductions allocable thereto) taken into account | ||||||
16 | for the taxable year with respect to a transaction with | ||||||
17 | a taxpayer that is required to make an addition | ||||||
18 | modification with respect to such transaction under | ||||||
19 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
20 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
21 | the amount of such addition modification and
(ii) any | ||||||
22 | income from intangible property (net of the deductions | ||||||
23 | allocable thereto) taken into account for the taxable | ||||||
24 | year with respect to a transaction with a taxpayer that | ||||||
25 | is required to make an addition modification with | ||||||
26 | respect to such transaction under Section |
| |||||||
| |||||||
1 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
2 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
3 | addition modification. This subparagraph (Q) is exempt | ||||||
4 | from Section 250;
| ||||||
5 | (R) An amount equal to the interest income taken | ||||||
6 | into account for the taxable year (net of the | ||||||
7 | 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-7) for interest | ||||||
22 | paid, accrued, or incurred, directly or indirectly, to | ||||||
23 | the same person. This subparagraph (R) is exempt from | ||||||
24 | Section 250; | ||||||
25 | (S) An amount equal to the income from intangible | ||||||
26 | property taken into account for the taxable year (net |
| |||||||
| |||||||
1 | of the deductions allocable thereto) with respect to | ||||||
2 | transactions with (i) a foreign person who would be a | ||||||
3 | member of the taxpayer's unitary business group but for | ||||||
4 | the fact that the foreign person's business activity | ||||||
5 | outside the United States is 80% or more of that | ||||||
6 | person's total business activity and (ii) for taxable | ||||||
7 | years ending on or after December 31, 2008, to a person | ||||||
8 | who would be a member of the same unitary business | ||||||
9 | group but for the fact that the person is prohibited | ||||||
10 | under Section 1501(a)(27) from being included in the | ||||||
11 | unitary business group because he or she is ordinarily | ||||||
12 | required to apportion business income under different | ||||||
13 | subsections of Section 304, but not to exceed the | ||||||
14 | addition modification required to be made for the same | ||||||
15 | taxable year under Section 203(d)(2)(D-8) for | ||||||
16 | intangible expenses and costs paid, accrued, or | ||||||
17 | incurred, directly or indirectly, to the same person. | ||||||
18 | This subparagraph (S) is exempt from Section 250; and
| ||||||
19 | (T) For taxable years ending on or after December | ||||||
20 | 31, 2011, in the case of a taxpayer who was required to | ||||||
21 | add back any insurance premiums under Section | ||||||
22 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
23 | that part of a reimbursement received from the | ||||||
24 | insurance company equal to the amount of the expense or | ||||||
25 | loss (including expenses incurred by the insurance | ||||||
26 | company) that would have been taken into account as a |
| |||||||
| |||||||
1 | deduction for federal income tax purposes if the | ||||||
2 | expense or loss had been uninsured. If a taxpayer makes | ||||||
3 | the election provided for by this subparagraph (T), the | ||||||
4 | insurer to which the premiums were paid must add back | ||||||
5 | to income the amount subtracted by the taxpayer | ||||||
6 | pursuant to this subparagraph (T). This subparagraph | ||||||
7 | (T) is exempt from the provisions of Section 250.
| ||||||
8 | (e) Gross income; adjusted gross income; taxable income. | ||||||
9 | (1) In general. Subject to the provisions of paragraph | ||||||
10 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
11 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
12 | gross income, or taxable income for
the taxable year shall | ||||||
13 | mean the amount of gross income, adjusted gross
income or | ||||||
14 | taxable income properly reportable for federal income tax
| ||||||
15 | purposes for the taxable year under the provisions of the | ||||||
16 | Internal
Revenue Code. Taxable income may be less than | ||||||
17 | zero. However, for taxable
years ending on or after | ||||||
18 | December 31, 1986, net operating loss
carryforwards from | ||||||
19 | taxable years ending prior to December 31, 1986, may not
| ||||||
20 | exceed the sum of federal taxable income for the taxable | ||||||
21 | year before net
operating loss deduction, plus the excess | ||||||
22 | of addition modifications over
subtraction modifications | ||||||
23 | for the taxable year. For taxable years ending
prior to | ||||||
24 | December 31, 1986, taxable income may never be an amount in | ||||||
25 | excess
of the net operating loss for the taxable year as |
| |||||||
| |||||||
1 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
2 | Internal Revenue Code, provided that when
taxable income of | ||||||
3 | a corporation (other than a Subchapter S corporation),
| ||||||
4 | trust, or estate is less than zero and addition | ||||||
5 | modifications, other than
those provided by subparagraph | ||||||
6 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
7 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
8 | trusts and estates, exceed subtraction modifications, an | ||||||
9 | addition
modification must be made under those | ||||||
10 | subparagraphs for any other taxable
year to which the | ||||||
11 | taxable income less than zero (net operating loss) is
| ||||||
12 | applied under Section 172 of the Internal Revenue Code or | ||||||
13 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
14 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
15 | Revenue Code. | ||||||
16 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
17 | subsection,
the taxable income properly reportable for | ||||||
18 | federal income tax purposes
shall mean: | ||||||
19 | (A) Certain life insurance companies. In the case | ||||||
20 | of a life
insurance company subject to the tax imposed | ||||||
21 | by Section 801 of the
Internal Revenue Code, life | ||||||
22 | insurance company taxable income, plus the
amount of | ||||||
23 | distribution from pre-1984 policyholder surplus | ||||||
24 | accounts as
calculated under Section 815a of the | ||||||
25 | Internal Revenue Code; | ||||||
26 | (B) Certain other insurance companies. In the case |
| |||||||
| |||||||
1 | of mutual
insurance companies subject to the tax | ||||||
2 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
3 | insurance company taxable income; | ||||||
4 | (C) Regulated investment companies. In the case of | ||||||
5 | a regulated
investment company subject to the tax | ||||||
6 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
7 | investment company taxable income; | ||||||
8 | (D) Real estate investment trusts. In the case of a | ||||||
9 | real estate
investment trust subject to the tax imposed | ||||||
10 | by Section 857 of the
Internal Revenue Code, real | ||||||
11 | estate investment trust taxable income; | ||||||
12 | (E) Consolidated corporations. In the case of a | ||||||
13 | corporation which
is a member of an affiliated group of | ||||||
14 | corporations filing a consolidated
income tax return | ||||||
15 | for the taxable year for federal income tax purposes,
| ||||||
16 | taxable income determined as if such corporation had | ||||||
17 | filed a separate
return for federal income tax purposes | ||||||
18 | for the taxable year and each
preceding taxable year | ||||||
19 | for which it was a member of an affiliated group.
For | ||||||
20 | purposes of this subparagraph, the taxpayer's separate | ||||||
21 | taxable
income shall be determined as if the election | ||||||
22 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
23 | Code had been in effect for all such years; | ||||||
24 | (F) Cooperatives. In the case of a cooperative | ||||||
25 | corporation or
association, the taxable income of such | ||||||
26 | organization determined in
accordance with the |
| |||||||
| |||||||
1 | provisions of Section 1381 through 1388 of the
Internal | ||||||
2 | Revenue Code, but without regard to the prohibition | ||||||
3 | against offsetting losses from patronage activities | ||||||
4 | against income from nonpatronage activities; except | ||||||
5 | that a cooperative corporation or association may make | ||||||
6 | an election to follow its federal income tax treatment | ||||||
7 | of patronage losses and nonpatronage losses. In the | ||||||
8 | event such election is made, such losses shall be | ||||||
9 | computed and carried over in a manner consistent with | ||||||
10 | subsection (a) of Section 207 of this Act and | ||||||
11 | apportioned by the apportionment factor reported by | ||||||
12 | the cooperative on its Illinois income tax return filed | ||||||
13 | for the taxable year in which the losses are incurred. | ||||||
14 | The election shall be effective for all taxable years | ||||||
15 | with original returns due on or after the date of the | ||||||
16 | election. In addition, the cooperative may file an | ||||||
17 | amended return or returns, as allowed under this Act, | ||||||
18 | to provide that the election shall be effective for | ||||||
19 | losses incurred or carried forward for taxable years | ||||||
20 | occurring prior to the date of the election. Once made, | ||||||
21 | the election may only be revoked upon approval of the | ||||||
22 | Director. The Department shall adopt rules setting | ||||||
23 | forth requirements for documenting the elections and | ||||||
24 | any resulting Illinois net loss and the standards to be | ||||||
25 | used by the Director in evaluating requests to revoke | ||||||
26 | elections. Public Act 96-932 is declaratory of |
| |||||||
| |||||||
1 | existing law; | ||||||
2 | (G) Subchapter S corporations. In the case of: (i) | ||||||
3 | a Subchapter S
corporation for which there is in effect | ||||||
4 | an election for the taxable year
under Section 1362 of | ||||||
5 | the Internal Revenue Code, the taxable income of such
| ||||||
6 | corporation determined in accordance with Section | ||||||
7 | 1363(b) of the Internal
Revenue Code, except that | ||||||
8 | taxable income shall take into
account those items | ||||||
9 | which are required by Section 1363(b)(1) of the
| ||||||
10 | Internal Revenue Code to be separately stated; and (ii) | ||||||
11 | a Subchapter
S corporation for which there is in effect | ||||||
12 | a federal election to opt out of
the provisions of the | ||||||
13 | Subchapter S Revision Act of 1982 and have applied
| ||||||
14 | instead the prior federal Subchapter S rules as in | ||||||
15 | effect on July 1, 1982,
the taxable income of such | ||||||
16 | corporation determined in accordance with the
federal | ||||||
17 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
18 | (H) Partnerships. In the case of a partnership, | ||||||
19 | taxable income
determined in accordance with Section | ||||||
20 | 703 of the Internal Revenue Code,
except that taxable | ||||||
21 | income shall take into account those items which are
| ||||||
22 | required by Section 703(a)(1) to be separately stated | ||||||
23 | but which would be
taken into account by an individual | ||||||
24 | in calculating his taxable income. | ||||||
25 | (3) Recapture of business expenses on disposition of | ||||||
26 | asset or business. Notwithstanding any other law to the |
| |||||||
| |||||||
1 | contrary, if in prior years income from an asset or | ||||||
2 | business has been classified as business income and in a | ||||||
3 | later year is demonstrated to be non-business income, then | ||||||
4 | all expenses, without limitation, deducted in such later | ||||||
5 | year and in the 2 immediately preceding taxable years | ||||||
6 | related to that asset or business that generated the | ||||||
7 | non-business income shall be added back and recaptured as | ||||||
8 | business income in the year of the disposition of the asset | ||||||
9 | or business. Such amount shall be apportioned to Illinois | ||||||
10 | using the greater of the apportionment fraction computed | ||||||
11 | for the business under Section 304 of this Act for the | ||||||
12 | taxable year or the average of the apportionment fractions | ||||||
13 | computed for the business under Section 304 of this Act for | ||||||
14 | the taxable year and for the 2 immediately preceding | ||||||
15 | taxable years.
| ||||||
16 | (f) Valuation limitation amount. | ||||||
17 | (1) In general. The valuation limitation amount | ||||||
18 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
19 | (d)(2) (E) is an amount equal to: | ||||||
20 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
21 | amounts (to the
extent consisting of gain reportable | ||||||
22 | under the provisions of Section
1245 or 1250 of the | ||||||
23 | Internal Revenue Code) for all property in respect
of | ||||||
24 | which such gain was reported for the taxable year; plus | ||||||
25 | (B) The lesser of (i) the sum of the pre-August 1, |
| |||||||
| |||||||
1 | 1969 appreciation
amounts (to the extent consisting of | ||||||
2 | capital gain) for all property in
respect of which such | ||||||
3 | gain was reported for federal income tax purposes
for | ||||||
4 | the taxable year, or (ii) the net capital gain for the | ||||||
5 | taxable year,
reduced in either case by any amount of | ||||||
6 | such gain included in the amount
determined under | ||||||
7 | subsection (a) (2) (F) or (c) (2) (H). | ||||||
8 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
9 | (A) If the fair market value of property referred | ||||||
10 | to in paragraph
(1) was readily ascertainable on August | ||||||
11 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
12 | such property is the lesser of (i) the excess of
such | ||||||
13 | fair market value over the taxpayer's basis (for | ||||||
14 | determining gain)
for such property on that date | ||||||
15 | (determined under the Internal Revenue
Code as in | ||||||
16 | effect on that date), or (ii) the total gain realized | ||||||
17 | and
reportable for federal income tax purposes in | ||||||
18 | respect of the sale,
exchange or other disposition of | ||||||
19 | such property. | ||||||
20 | (B) If the fair market value of property referred | ||||||
21 | to in paragraph
(1) was not readily ascertainable on | ||||||
22 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
23 | amount for such property is that amount which bears
the | ||||||
24 | same ratio to the total gain reported in respect of the | ||||||
25 | property for
federal income tax purposes for the | ||||||
26 | taxable year, as the number of full
calendar months in |
| |||||||
| |||||||
1 | that part of the taxpayer's holding period for the
| ||||||
2 | property ending July 31, 1969 bears to the number of | ||||||
3 | full calendar
months in the taxpayer's entire holding | ||||||
4 | period for the
property. | ||||||
5 | (C) The Department shall prescribe such | ||||||
6 | regulations as may be
necessary to carry out the | ||||||
7 | purposes of this paragraph.
| ||||||
8 | (g) Double deductions. Unless specifically provided | ||||||
9 | otherwise, nothing
in this Section shall permit the same item | ||||||
10 | to be deducted more than once.
| ||||||
11 | (h) Legislative intention. Except as expressly provided by | ||||||
12 | this
Section there shall be no modifications or limitations on | ||||||
13 | the amounts
of income, gain, loss or deduction taken into | ||||||
14 | account in determining
gross income, adjusted gross income or | ||||||
15 | taxable income for federal income
tax purposes for the taxable | ||||||
16 | year, or in the amount of such items
entering into the | ||||||
17 | computation of base income and net income under this
Act for | ||||||
18 | such taxable year, whether in respect of property values as of
| ||||||
19 | August 1, 1969 or otherwise. | ||||||
20 | (Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||||||
21 | eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||||||
22 | 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||||||
23 | 6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||||||
24 | eff. 8-23-11; 97-905, eff. 8-7-12.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
2 | Sec. 204. Standard Exemption.
| ||||||
3 | (a) Allowance of exemption. In computing net income under | ||||||
4 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
5 | amounts determined under
subsections (b), (c) and (d), | ||||||
6 | multiplied by a fraction the numerator of which
is the amount | ||||||
7 | of the taxpayer's base income allocable to this State for the
| ||||||
8 | taxable year and the denominator of which is the taxpayer's | ||||||
9 | total base income
for the taxable year.
| ||||||
10 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
11 | Section,
except as provided by subsection (a) of Section 205 | ||||||
12 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
13 | amount of $1000, except
that for corporations the basic amount | ||||||
14 | shall be zero for tax years ending on
or
after December 31, | ||||||
15 | 2003, and for individuals the basic amount shall be:
| ||||||
16 | (1) for taxable years ending on or after December 31, | ||||||
17 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
18 | (2) for taxable years ending on or after December 31, | ||||||
19 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
20 | (3) for taxable years ending on or after December 31, | ||||||
21 | 2000 and prior to December 31, 2012, $2,000;
| ||||||
22 | (4) for taxable years ending on or after December 31, | ||||||
23 | 2012 and prior to December 31, 2013, $2,050; | ||||||
24 | (5) for taxable years ending on or after December 31, | ||||||
25 | 2013, $2,050 plus the cost-of-living adjustment under |
| |||||||
| |||||||
1 | subsection (d-5). | ||||||
2 | For taxable years ending on or after December 31, 1992, a | ||||||
3 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
4 | and who is claimed as a dependent
on another person's tax | ||||||
5 | return under the Internal Revenue Code shall
not be allowed any | ||||||
6 | basic amount under this subsection.
| ||||||
7 | (c) Additional amount for individuals. In the case of an | ||||||
8 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
9 | subsection (a), in
addition to the basic amount provided by | ||||||
10 | subsection (b), an additional
exemption equal to the basic | ||||||
11 | amount for each
exemption in excess of one
allowable to such | ||||||
12 | individual taxpayer for the taxable year under Section
151 of | ||||||
13 | the Internal Revenue Code.
| ||||||
14 | (d) Additional exemptions for an individual taxpayer and | ||||||
15 | his or her
spouse. In the case of an individual taxpayer and | ||||||
16 | his or her spouse, he or
she shall each be allowed additional | ||||||
17 | exemptions as follows:
| ||||||
18 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
19 | years of age or older.
| ||||||
20 | (A) For taxpayer. An additional exemption of | ||||||
21 | $1,000 for the taxpayer if
he or she has attained the | ||||||
22 | age of 65 before the end of the taxable year.
| ||||||
23 | (B) For spouse when a joint return is not filed. An | ||||||
24 | additional
exemption of $1,000 for the spouse of the | ||||||
25 | taxpayer if a joint return is not
made by the taxpayer | ||||||
26 | and his spouse, and if the spouse has attained the age
|
| |||||||
| |||||||
1 | of 65 before the end of such taxable year, and, for the | ||||||
2 | calendar year in
which the taxable year of the taxpayer | ||||||
3 | begins, has no gross income and is
not the dependent of | ||||||
4 | another taxpayer.
| ||||||
5 | (2) Additional exemption for blindness of taxpayer or | ||||||
6 | spouse.
| ||||||
7 | (A) For taxpayer. An additional exemption of | ||||||
8 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
9 | end of the taxable year.
| ||||||
10 | (B) For spouse when a joint return is not filed. An | ||||||
11 | additional
exemption of $1,000 for the spouse of the | ||||||
12 | taxpayer if a separate return is made
by the taxpayer, | ||||||
13 | and if the spouse is blind and, for the calendar year | ||||||
14 | in which
the taxable year of the taxpayer begins, has | ||||||
15 | no gross income and is not the
dependent of another | ||||||
16 | taxpayer. For purposes of this paragraph, the
| ||||||
17 | determination of whether the spouse is blind shall be | ||||||
18 | made as of the end of the
taxable year of the taxpayer; | ||||||
19 | except that if the spouse dies during such
taxable year | ||||||
20 | such determination shall be made as of the time of such | ||||||
21 | death.
| ||||||
22 | (C) Blindness defined. For purposes of this | ||||||
23 | subsection, an individual
is blind only if his or her | ||||||
24 | central visual acuity does not exceed 20/200 in
the | ||||||
25 | better eye with correcting lenses, or if his or her | ||||||
26 | visual acuity is
greater than 20/200 but is accompanied |
| |||||||
| |||||||
1 | by a limitation in the fields of
vision such that the | ||||||
2 | widest diameter of the visual fields subtends an angle
| ||||||
3 | no greater than 20 degrees.
| ||||||
4 | (d-5) Cost-of-living adjustment. For purposes of item (5) | ||||||
5 | of subsection (b), the cost-of-living adjustment for any | ||||||
6 | calendar year and for taxable years ending prior to the end of | ||||||
7 | the subsequent calendar year is equal to $2,050 times the | ||||||
8 | percentage (if any) by which: | ||||||
9 | (1) the Consumer Price Index for the preceding calendar | ||||||
10 | year, exceeds | ||||||
11 | (2) the Consumer Price Index for the calendar year | ||||||
12 | 2011. | ||||||
13 | The Consumer Price Index for any calendar year is the | ||||||
14 | average of the Consumer Price Index as of the close of the | ||||||
15 | 12-month period ending on August 31 of that calendar year. | ||||||
16 | The term "Consumer Price Index" means the last Consumer | ||||||
17 | Price Index for All Urban Consumers published by the United | ||||||
18 | States Department of Labor or any successor agency. | ||||||
19 | If any cost-of-living adjustment is not a multiple of $25, | ||||||
20 | that adjustment shall be rounded to the next lowest multiple of | ||||||
21 | $25. | ||||||
22 | (e) Cross reference. See Article 3 for the manner of | ||||||
23 | determining
base income allocable to this State.
| ||||||
24 | (f) Application of Section 250. Section 250 does not apply | ||||||
25 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
26 | (g) Notwithstanding any other provision of law, for taxable |
| |||||||
| |||||||
1 | years beginning on or after January 1, 2017, no taxpayer may | ||||||
2 | claim an exemption under this Section if the taxpayer's | ||||||
3 | adjusted gross income for the taxable year exceeds (i) | ||||||
4 | $500,000, in the case of spouses filing a joint federal tax | ||||||
5 | return or (ii) $250,000, in the case of all other taxpayers. | ||||||
6 | (Source: P.A. 97-507, eff. 8-23-11; 97-652, eff. 6-1-12 .)
| ||||||
7 | (35 ILCS 5/208) (from Ch. 120, par. 2-208)
| ||||||
8 | Sec. 208. Tax credit for residential real property taxes. | ||||||
9 | Beginning with tax years ending on or after December 31, 1991,
| ||||||
10 | every individual taxpayer shall be entitled to a tax credit | ||||||
11 | equal
to 5% of real property taxes paid by such taxpayer during | ||||||
12 | the
taxable year on the principal residence of the taxpayer. In | ||||||
13 | the
case of multi-unit or multi-use structures and farm | ||||||
14 | dwellings,
the taxes on the taxpayer's principal residence | ||||||
15 | shall be that
portion of the total taxes which is attributable | ||||||
16 | to such principal
residence. Notwithstanding any other | ||||||
17 | provision of law, for taxable years beginning on or after | ||||||
18 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
19 | Section if the taxpayer's adjusted gross income for the taxable | ||||||
20 | year exceeds (i) $500,000, in the case of spouses filing a | ||||||
21 | joint federal tax return, or (ii) $250,000, in the case of all | ||||||
22 | other taxpayers.
| ||||||
23 | (Source: P.A. 87-17.)
| ||||||
24 | (35 ILCS 5/212)
|
| |||||||
| |||||||
1 | Sec. 212. Earned income tax credit.
| ||||||
2 | (a) With respect to the federal earned income tax credit | ||||||
3 | allowed for the
taxable year under Section 32 of the federal | ||||||
4 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
5 | is entitled to a credit against the tax imposed by
subsections | ||||||
6 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||
7 | federal tax credit for each taxable year beginning on or after
| ||||||
8 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||
9 | 7.5% of the federal tax credit for each taxable year beginning | ||||||
10 | on or after January 1, 2012 and ending prior to December 31, | ||||||
11 | 2013, and (iii) 10% of the federal tax credit for each taxable | ||||||
12 | year beginning on or after January 1, 2013 and beginning prior | ||||||
13 | to January 1, 2017, (iv) 14% of the federal tax credit for each | ||||||
14 | taxable year beginning on or after January 1, 2017 and | ||||||
15 | beginning prior to January 1, 2018, and (v) 18% of the federal | ||||||
16 | tax credit for each taxable year beginning on or after January | ||||||
17 | 1, 2018 .
| ||||||
18 | For a non-resident or part-year resident, the amount of the | ||||||
19 | credit under this
Section shall be in proportion to the amount | ||||||
20 | of income attributable to this
State.
| ||||||
21 | (b) For taxable years beginning before January 1, 2003, in | ||||||
22 | no event
shall a credit under this Section reduce the | ||||||
23 | taxpayer's
liability to less than zero. For each taxable year | ||||||
24 | beginning on or after
January 1, 2003, if the amount of the | ||||||
25 | credit exceeds the income tax liability
for the applicable tax | ||||||
26 | year, then the excess credit shall be refunded to the
taxpayer. |
| |||||||
| |||||||
1 | The amount of a refund shall not be included in the taxpayer's
| ||||||
2 | income or resources for the purposes of determining eligibility | ||||||
3 | or benefit
level in any means-tested benefit program | ||||||
4 | administered by a governmental entity
unless required by | ||||||
5 | federal law.
| ||||||
6 | (c) This Section is exempt from the provisions of Section | ||||||
7 | 250.
| ||||||
8 | (Source: P.A. 97-652, eff. 6-1-12 .)
| ||||||
9 | (35 ILCS 5/225 new) | ||||||
10 | Sec. 225. Credit for instructional materials and supplies. | ||||||
11 | For taxable years beginning on and after January 1, 2017, a | ||||||
12 | taxpayer shall be allowed a credit in the amount paid by the | ||||||
13 | taxpayer during the taxable year for instructional materials | ||||||
14 | and supplies with respect to classroom based instruction in a | ||||||
15 | qualified school, or $250, whichever is less, provided that the | ||||||
16 | taxpayer is a teacher, instructor, counselor, principal, or | ||||||
17 | aide in a qualified school for at least 900 hours during a | ||||||
18 | school year. | ||||||
19 | The credit may not be carried back and may not reduce the | ||||||
20 | taxpayer's liability to less than zero. If the amount of the | ||||||
21 | credit exceeds the tax liability for the year, the excess may | ||||||
22 | be carried forward and applied to the tax liability of the 5 | ||||||
23 | taxable years following the excess credit year. The tax credit | ||||||
24 | shall be applied to the earliest year for which there is a tax | ||||||
25 | liability. If there are credits for more than one year that are |
| |||||||
| |||||||
1 | available to offset a liability, the earlier credit shall be | ||||||
2 | applied first. | ||||||
3 | For purposes of this Section, the term "materials and | ||||||
4 | supplies" means amounts paid for instructional materials or | ||||||
5 | supplies that are designated for classroom use in any qualified | ||||||
6 | school. For purposes of this Section, the term "qualified | ||||||
7 | school" means a public school or non-public school located in | ||||||
8 | Illinois. | ||||||
9 | This Section is exempt from the provisions of Section 250.
| ||||||
10 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
11 | Sec. 901. Collection authority. | ||||||
12 | (a) In general. | ||||||
13 | The Department shall collect the taxes imposed by this Act. | ||||||
14 | The Department
shall collect certified past due child support | ||||||
15 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
16 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||||||
17 | (e), (f), (g), and (h) of this Section, money collected
| ||||||
18 | pursuant to subsections (a) and (b) of Section 201 of this Act | ||||||
19 | shall be
paid into the General Revenue Fund in the State | ||||||
20 | treasury; money
collected pursuant to subsections (c) and (d) | ||||||
21 | of Section 201 of this Act
shall be paid into the Personal | ||||||
22 | Property Tax Replacement Fund, a special
fund in the State | ||||||
23 | Treasury; and money collected under Section 2505-650 of the
| ||||||
24 | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||||||
25 | into the
Child Support Enforcement Trust Fund, a special fund |
| |||||||
| |||||||
1 | outside the State
Treasury, or
to the State
Disbursement Unit | ||||||
2 | established under Section 10-26 of the Illinois Public Aid
| ||||||
3 | Code, as directed by the Department of Healthcare and Family | ||||||
4 | Services. | ||||||
5 | (b) Local Government Distributive Fund. | ||||||
6 | Beginning August 1, 1969, and continuing through June 30, | ||||||
7 | 1994, the Treasurer
shall transfer each month from the General | ||||||
8 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
9 | known as the "Local Government Distributive Fund", an
amount | ||||||
10 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
11 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
12 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
13 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
14 | from the General Revenue Fund to the Local Government
| ||||||
15 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
16 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
17 | Section 201 of this Act during the
preceding month. Beginning | ||||||
18 | July 1, 1995 and continuing through January 31, 2011, the | ||||||
19 | Treasurer shall transfer each
month from the General Revenue | ||||||
20 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
21 | to the net of (i) 1/10 of the net revenue realized from the
tax | ||||||
22 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
23 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
24 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
25 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
26 | and continuing through January 31, 2015, the Treasurer shall |
| |||||||
| |||||||
1 | transfer each month from the General Revenue Fund to the Local | ||||||
2 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
3 | 6% (10% of the ratio of the 3% individual income tax rate prior | ||||||
4 | to 2011 to the 5% individual income tax rate after 2010) of the | ||||||
5 | net revenue realized from the tax imposed by subsections (a) | ||||||
6 | and (b) of Section 201 of this Act upon individuals, trusts, | ||||||
7 | and estates during the preceding month and (ii) 6.86% (10% of | ||||||
8 | the ratio of the 4.8% corporate income tax rate prior to 2011 | ||||||
9 | to the 7% corporate income tax rate after 2010) of the net | ||||||
10 | revenue realized from the tax imposed by subsections (a) and | ||||||
11 | (b) of Section 201 of this Act upon corporations during the | ||||||
12 | preceding month. Beginning February 1, 2015 and continuing | ||||||
13 | through July 31, 2017 January 31, 2025 , the Treasurer shall | ||||||
14 | transfer each month from the General Revenue Fund to the Local | ||||||
15 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
16 | 8% (10% of the ratio of the 3% individual income tax rate prior | ||||||
17 | to 2011 to the 3.75% individual income tax rate after 2014) of | ||||||
18 | the net revenue realized from the tax imposed by subsections | ||||||
19 | (a) and (b) of Section 201 of this Act upon individuals, | ||||||
20 | trusts, and estates during the preceding month and (ii) 9.14% | ||||||
21 | (10% of the ratio of the 4.8% corporate income tax rate prior | ||||||
22 | to 2011 to the 5.25% corporate income tax rate after 2014) of | ||||||
23 | the net revenue realized from the tax imposed by subsections | ||||||
24 | (a) and (b) of Section 201 of this Act upon corporations during | ||||||
25 | the preceding month. Beginning August 1, 2017 February 1, 2025 , | ||||||
26 | the Treasurer shall transfer each month from the General |
| |||||||
| |||||||
1 | Revenue Fund to the Local Government Distributive Fund an | ||||||
2 | amount equal to the sum of (i) 6.06% 9.23% (10% of the ratio of | ||||||
3 | the 3% individual income tax rate prior to 2011 to the 4.95% | ||||||
4 | 3.25% individual income tax rate after July 1, 2017 2024 ) of | ||||||
5 | the net revenue realized from the tax imposed by subsections | ||||||
6 | (a) and (b) of Section 201 of this Act upon individuals, | ||||||
7 | trusts, and estates during the preceding month and (ii) 6.85% | ||||||
8 | (10% of the ratio of the 4.8% corporate income tax rate prior | ||||||
9 | to 2011 to the 7% corporate income tax rate after July 1, 2017) | ||||||
10 | 10% of the net revenue realized from the tax imposed by | ||||||
11 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
12 | corporations during the preceding month. Net revenue realized | ||||||
13 | for a month shall be defined as the
revenue from the tax | ||||||
14 | imposed by subsections (a) and (b) of Section 201 of this
Act | ||||||
15 | which is deposited in the General Revenue Fund, the Education | ||||||
16 | Assistance
Fund, the Income Tax Surcharge Local Government | ||||||
17 | Distributive Fund, the Fund for the Advancement of Education, | ||||||
18 | and the Commitment to Human Services Fund during the
month | ||||||
19 | minus the amount paid out of the General Revenue Fund in State | ||||||
20 | warrants
during that same month as refunds to taxpayers for | ||||||
21 | overpayment of liability
under the tax imposed by subsections | ||||||
22 | (a) and (b) of Section 201 of this Act. | ||||||
23 | Beginning on August 26, 2014 (the effective date of Public | ||||||
24 | Act 98-1052), the Comptroller shall perform the transfers | ||||||
25 | required by this subsection (b) no later than 60 days after he | ||||||
26 | or she receives the certification from the Treasurer as |
| |||||||
| |||||||
1 | provided in Section 1 of the State Revenue Sharing Act. | ||||||
2 | (c) Deposits Into Income Tax Refund Fund. | ||||||
3 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
4 | Department shall
deposit a percentage of the amounts | ||||||
5 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
6 | (3), of Section 201 of this Act into a fund in the State
| ||||||
7 | treasury known as the Income Tax Refund Fund. The | ||||||
8 | Department shall deposit 6%
of such amounts during the | ||||||
9 | period beginning January 1, 1989 and ending on June
30, | ||||||
10 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
11 | fiscal year
thereafter, the percentage deposited into the | ||||||
12 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
13 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
14 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
15 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
16 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
17 | of this amendatory Act of the 93rd General Assembly, the | ||||||
18 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
19 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
20 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
21 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
22 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
23 | fiscal year 2010, the Annual Percentage shall be 9.75%. For | ||||||
24 | fiscal year 2011, the Annual Percentage shall be 8.75%. For | ||||||
25 | fiscal year 2012, the Annual Percentage shall be 8.75%. For | ||||||
26 | fiscal year 2013, the Annual Percentage shall be 9.75%. For |
| |||||||
| |||||||
1 | fiscal year 2014, the Annual Percentage shall be 9.5%. For | ||||||
2 | fiscal year 2015, the Annual Percentage shall be 10%. For | ||||||
3 | all other
fiscal years, the
Annual Percentage shall be | ||||||
4 | calculated as a fraction, the numerator of which
shall be | ||||||
5 | the amount of refunds approved for payment by the | ||||||
6 | Department during
the preceding fiscal year as a result of | ||||||
7 | overpayment of tax liability under
subsections (a) and | ||||||
8 | (b)(1), (2), and (3) of Section 201 of this Act plus the
| ||||||
9 | amount of such refunds remaining approved but unpaid at the | ||||||
10 | end of the
preceding fiscal year, minus the amounts | ||||||
11 | transferred into the Income Tax
Refund Fund from the | ||||||
12 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
13 | which shall be the amounts which will be collected pursuant
| ||||||
14 | to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||||||
15 | of this Act during
the preceding fiscal year; except that | ||||||
16 | in State fiscal year 2002, the Annual
Percentage shall in | ||||||
17 | no event exceed 7.6%. The Director of Revenue shall
certify | ||||||
18 | the Annual Percentage to the Comptroller on the last | ||||||
19 | business day of
the fiscal year immediately preceding the | ||||||
20 | fiscal year for which it is to be
effective. | ||||||
21 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
22 | Department shall
deposit a percentage of the amounts | ||||||
23 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
24 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
25 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
26 | Department shall deposit 18% of such amounts during the
|
| |||||||
| |||||||
1 | period beginning January 1, 1989 and ending on June 30, | ||||||
2 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
3 | fiscal year thereafter, the
percentage deposited into the | ||||||
4 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
5 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
6 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
7 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
8 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
9 | of this amendatory Act of the 93rd General Assembly, the | ||||||
10 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
11 | fiscal year 2006, the Annual Percentage shall be 20%. For | ||||||
12 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
13 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
14 | fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||||||
15 | fiscal year 2010, the Annual Percentage shall be 17.5%. For | ||||||
16 | fiscal year 2011, the Annual Percentage shall be 17.5%. For | ||||||
17 | fiscal year 2012, the Annual Percentage shall be 17.5%. For | ||||||
18 | fiscal year 2013, the Annual Percentage shall be 14%. For | ||||||
19 | fiscal year 2014, the Annual Percentage shall be 13.4%. For | ||||||
20 | fiscal year 2015, the Annual Percentage shall be 14%. For | ||||||
21 | all other fiscal years, the Annual
Percentage shall be | ||||||
22 | calculated
as a fraction, the numerator of which shall be | ||||||
23 | the amount of refunds
approved for payment by the | ||||||
24 | Department during the preceding fiscal year as
a result of | ||||||
25 | overpayment of tax liability under subsections (a) and | ||||||
26 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this |
| |||||||
| |||||||
1 | Act plus the
amount of such refunds remaining approved but | ||||||
2 | unpaid at the end of the
preceding fiscal year, and the | ||||||
3 | denominator of
which shall be the amounts which will be | ||||||
4 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
5 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
6 | preceding fiscal year; except that in State fiscal year | ||||||
7 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
8 | The Director of Revenue shall
certify the Annual Percentage | ||||||
9 | to the Comptroller on the last business day of
the fiscal | ||||||
10 | year immediately preceding the fiscal year for which it is | ||||||
11 | to be
effective. | ||||||
12 | (3) The Comptroller shall order transferred and the | ||||||
13 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
14 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
15 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
16 | (iii) $35,000,000 in January, 2003. | ||||||
17 | (d) Expenditures from Income Tax Refund Fund. | ||||||
18 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
19 | Refund Fund
shall be expended exclusively for the purpose | ||||||
20 | of paying refunds resulting
from overpayment of tax | ||||||
21 | liability under Section 201 of this Act, for paying
rebates | ||||||
22 | under Section 208.1 in the event that the amounts in the | ||||||
23 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
24 | purpose,
and for
making transfers pursuant to this | ||||||
25 | subsection (d). | ||||||
26 | (2) The Director shall order payment of refunds |
| |||||||
| |||||||
1 | resulting from
overpayment of tax liability under Section | ||||||
2 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
3 | extent that amounts collected pursuant
to Section 201 of | ||||||
4 | this Act and transfers pursuant to this subsection (d)
and | ||||||
5 | item (3) of subsection (c) have been deposited and retained | ||||||
6 | in the
Fund. | ||||||
7 | (3) As soon as possible after the end of each fiscal | ||||||
8 | year, the Director
shall
order transferred and the State | ||||||
9 | Treasurer and State Comptroller shall
transfer from the | ||||||
10 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
11 | Replacement Fund an amount, certified by the Director to | ||||||
12 | the Comptroller,
equal to the excess of the amount | ||||||
13 | collected pursuant to subsections (c) and
(d) of Section | ||||||
14 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
15 | during the fiscal year over the amount of refunds resulting | ||||||
16 | from
overpayment of tax liability under subsections (c) and | ||||||
17 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
18 | Refund Fund during the fiscal year. | ||||||
19 | (4) As soon as possible after the end of each fiscal | ||||||
20 | year, the Director shall
order transferred and the State | ||||||
21 | Treasurer and State Comptroller shall
transfer from the | ||||||
22 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
23 | Refund Fund an amount, certified by the Director to the | ||||||
24 | Comptroller, equal
to the excess of the amount of refunds | ||||||
25 | resulting from overpayment of tax
liability under | ||||||
26 | subsections (c) and (d) of Section 201 of this Act paid
|
| |||||||
| |||||||
1 | from the Income Tax Refund Fund during the fiscal year over | ||||||
2 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
3 | Section 201 of this Act
deposited into the Income Tax | ||||||
4 | Refund Fund during the fiscal year. | ||||||
5 | (4.5) As soon as possible after the end of fiscal year | ||||||
6 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
7 | order transferred and the State Treasurer and
State | ||||||
8 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
9 | to the General
Revenue Fund any surplus remaining in the | ||||||
10 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
11 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
12 | attributable to transfers under item (3) of subsection (c) | ||||||
13 | less refunds
resulting from the earned income tax credit. | ||||||
14 | (5) This Act shall constitute an irrevocable and | ||||||
15 | continuing
appropriation from the Income Tax Refund Fund | ||||||
16 | for the purpose of paying
refunds upon the order of the | ||||||
17 | Director in accordance with the provisions of
this Section. | ||||||
18 | (e) Deposits into the Education Assistance Fund and the | ||||||
19 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
20 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
21 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
22 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
23 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
24 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
25 | January 31, 1993, of the amounts collected pursuant to
| ||||||
26 | subsections (a) and (b) of Section 201 of the Illinois Income |
| |||||||
| |||||||
1 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
2 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
3 | Local Government Distributive Fund in the State
Treasury. | ||||||
4 | Beginning February 1, 1993 and continuing through June 30, | ||||||
5 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
6 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
7 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
8 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
9 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
10 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
11 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
12 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
13 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
14 | Local Government Distributive Fund in the State Treasury. | ||||||
15 | (f) Deposits into the Fund for the Advancement of | ||||||
16 | Education. Beginning February 1, 2015, the Department shall | ||||||
17 | deposit the following portions of the revenue realized from the | ||||||
18 | tax imposed upon individuals, trusts, and estates by | ||||||
19 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
20 | preceding month, minus deposits into the Income Tax Refund | ||||||
21 | Fund, into the Fund for the Advancement of Education: | ||||||
22 | (1) beginning February 1, 2015, and prior to February | ||||||
23 | 1, 2025, 1/30; and | ||||||
24 | (2) beginning February 1, 2025, 1/26. | ||||||
25 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
26 | Section 201 is reduced pursuant to Section 201.5 of this Act, |
| |||||||
| |||||||
1 | the Department shall not make the deposits required by this | ||||||
2 | subsection (f) on or after the effective date of the reduction. | ||||||
3 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
4 | Beginning February 1, 2015, the Department shall deposit the | ||||||
5 | following portions of the revenue realized from the tax imposed | ||||||
6 | upon individuals, trusts, and estates by subsections (a) and | ||||||
7 | (b) of Section 201 of this Act during the preceding month, | ||||||
8 | minus deposits into the Income Tax Refund Fund, into the | ||||||
9 | Commitment to Human Services Fund: | ||||||
10 | (1) beginning February 1, 2015, and prior to February | ||||||
11 | 1, 2025, 1/30; and | ||||||
12 | (2) beginning February 1, 2025, 1/26. | ||||||
13 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
14 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
15 | the Department shall not make the deposits required by this | ||||||
16 | subsection (g) on or after the effective date of the reduction. | ||||||
17 | (h) Deposits into the Tax Compliance and Administration | ||||||
18 | Fund. Beginning on the first day of the first calendar month to | ||||||
19 | occur on or after August 26, 2014 (the effective date of Public | ||||||
20 | Act 98-1098), each month the Department shall pay into the Tax | ||||||
21 | Compliance and Administration Fund, to be used, subject to | ||||||
22 | appropriation, to fund additional auditors and compliance | ||||||
23 | personnel at the Department, an amount equal to 1/12 of 5% of | ||||||
24 | the cash receipts collected during the preceding fiscal year by | ||||||
25 | the Audit Bureau of the Department from the tax imposed by | ||||||
26 | subsections (a), (b), (c), and (d) of Section 201 of this Act, |
| |||||||
| |||||||
1 | net of deposits into the Income Tax Refund Fund made from those | ||||||
2 | cash receipts. | ||||||
3 | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; | ||||||
4 | 98-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff. | ||||||
5 | 7-20-15.)
| ||||||
6 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
7 | Sec. 1501. Definitions.
| ||||||
8 | (a) In general. When used in this Act, where not
otherwise | ||||||
9 | distinctly expressed or manifestly incompatible with the | ||||||
10 | intent
thereof:
| ||||||
11 | (1) Business income. The term "business income" means | ||||||
12 | all income that may be treated as apportionable business | ||||||
13 | income under the Constitution of the United States. | ||||||
14 | Business income is net of the deductions allocable thereto. | ||||||
15 | Such term does not include compensation
or the deductions | ||||||
16 | allocable thereto.
For each taxable year beginning on or | ||||||
17 | after January 1, 2003, a taxpayer may
elect to treat all | ||||||
18 | income other than compensation as business income. This
| ||||||
19 | election shall be made in accordance with rules adopted by | ||||||
20 | the Department and,
once made, shall be irrevocable.
| ||||||
21 | (1.5) Captive real estate investment trust:
| ||||||
22 | (A) The term "captive real estate investment | ||||||
23 | trust" means a corporation, trust, or association:
| ||||||
24 | (i) that is considered a real estate | ||||||
25 | investment trust for the taxable year under |
| |||||||
| |||||||
1 | Section 856 of the Internal Revenue Code;
| ||||||
2 | (ii) the certificates of beneficial interest | ||||||
3 | or shares of which are not regularly traded on an | ||||||
4 | established securities market; and | ||||||
5 | (iii) of which more than 50% of the voting | ||||||
6 | power or value of the beneficial interest or | ||||||
7 | shares, at any time during the last half of the | ||||||
8 | taxable year, is owned or controlled, directly, | ||||||
9 | indirectly, or constructively, by a single | ||||||
10 | corporation. | ||||||
11 | (B) The term "captive real estate investment | ||||||
12 | trust" does not include: | ||||||
13 | (i) a real estate investment trust of which | ||||||
14 | more than 50% of the voting power or value of the | ||||||
15 | beneficial interest or shares is owned or | ||||||
16 | controlled, directly, indirectly, or | ||||||
17 | constructively, by: | ||||||
18 | (a) a real estate investment trust, other | ||||||
19 | than a captive real estate investment trust; | ||||||
20 | (b) a person who is exempt from taxation | ||||||
21 | under Section 501 of the Internal Revenue Code, | ||||||
22 | and who is not required to treat income | ||||||
23 | received from the real estate investment trust | ||||||
24 | as unrelated business taxable income under | ||||||
25 | Section 512 of the Internal Revenue Code; | ||||||
26 | (c) a listed Australian property trust, if |
| |||||||
| |||||||
1 | no more than 50% of the voting power or value | ||||||
2 | of the beneficial interest or shares of that | ||||||
3 | trust, at any time during the last half of the | ||||||
4 | taxable year, is owned or controlled, directly | ||||||
5 | or indirectly, by a single person; | ||||||
6 | (d) an entity organized as a trust, | ||||||
7 | provided a listed Australian property trust | ||||||
8 | described in subparagraph (c) owns or | ||||||
9 | controls, directly or indirectly, or | ||||||
10 | constructively, 75% or more of the voting power | ||||||
11 | or value of the beneficial interests or shares | ||||||
12 | of such entity; or | ||||||
13 | (e) an entity that is organized outside of | ||||||
14 | the laws of the United States and that | ||||||
15 | satisfies all of the following criteria: | ||||||
16 | (1) at least 75% of the entity's total | ||||||
17 | asset value at the close of its taxable | ||||||
18 | year is represented by real estate assets | ||||||
19 | (as defined in Section 856(c)(5)(B) of the | ||||||
20 | Internal Revenue Code, thereby including | ||||||
21 | shares or certificates of beneficial | ||||||
22 | interest in any real estate investment | ||||||
23 | trust), cash and cash equivalents, and | ||||||
24 | U.S. Government securities; | ||||||
25 | (2) the entity is not subject to tax on | ||||||
26 | amounts that are distributed to its |
| |||||||
| |||||||
1 | beneficial owners or is exempt from | ||||||
2 | entity-level taxation; | ||||||
3 | (3) the entity distributes at least | ||||||
4 | 85% of its taxable income (as computed in | ||||||
5 | the jurisdiction in which it is organized) | ||||||
6 | to the holders of its shares or | ||||||
7 | certificates of beneficial interest on an | ||||||
8 | annual basis; | ||||||
9 | (4) either (i) the shares or | ||||||
10 | beneficial interests of the entity are | ||||||
11 | regularly traded on an established | ||||||
12 | securities market or (ii) not more than 10% | ||||||
13 | of the voting power or value in the entity | ||||||
14 | is held, directly, indirectly, or | ||||||
15 | constructively, by a single entity or | ||||||
16 | individual; and | ||||||
17 | (5) the entity is organized in a | ||||||
18 | country that has entered into a tax treaty | ||||||
19 | with the United States; or | ||||||
20 | (ii) during its first taxable year for which it | ||||||
21 | elects to be treated as a real estate investment | ||||||
22 | trust under Section 856(c)(1) of the Internal | ||||||
23 | Revenue Code, a real estate investment trust the | ||||||
24 | certificates of beneficial interest or shares of | ||||||
25 | which are not regularly traded on an established | ||||||
26 | securities market, but only if the certificates of |
| |||||||
| |||||||
1 | beneficial interest or shares of the real estate | ||||||
2 | investment trust are regularly traded on an | ||||||
3 | established securities market prior to the earlier | ||||||
4 | of the due date (including extensions) for filing | ||||||
5 | its return under this Act for that first taxable | ||||||
6 | year or the date it actually files that return. | ||||||
7 | (C) For the purposes of this subsection (1.5), the | ||||||
8 | constructive ownership rules prescribed under Section | ||||||
9 | 318(a) of the Internal Revenue Code, as modified by | ||||||
10 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
11 | in determining the ownership of stock, assets, or net | ||||||
12 | profits of any person.
| ||||||
13 | (D) For the purposes of this item (1.5), for | ||||||
14 | taxable years ending on or after August 16, 2007, the | ||||||
15 | voting power or value of the beneficial interest or | ||||||
16 | shares of a real estate investment trust does not | ||||||
17 | include any voting power or value of beneficial | ||||||
18 | interest or shares in a real estate investment trust | ||||||
19 | held directly or indirectly in a segregated asset | ||||||
20 | account by a life insurance company (as described in | ||||||
21 | Section 817 of the Internal Revenue Code) to the extent | ||||||
22 | such voting power or value is for the benefit of | ||||||
23 | entities or persons who are either immune from taxation | ||||||
24 | or exempt from taxation under subtitle A of the | ||||||
25 | Internal Revenue Code.
| ||||||
26 | (2) Commercial domicile. The term "commercial |
| |||||||
| |||||||
1 | domicile" means the
principal
place from which the trade or | ||||||
2 | business of the taxpayer is directed or managed.
| ||||||
3 | (3) Compensation. The term "compensation" means wages, | ||||||
4 | salaries,
commissions
and any other form of remuneration | ||||||
5 | paid to employees for personal services.
| ||||||
6 | (4) Corporation. The term "corporation" includes | ||||||
7 | associations, joint-stock
companies, insurance companies | ||||||
8 | and cooperatives. Any entity, including a
limited | ||||||
9 | liability company formed under the Illinois Limited | ||||||
10 | Liability Company
Act, shall be treated as a corporation if | ||||||
11 | it is so classified for federal
income tax purposes.
| ||||||
12 | (5) Department. The term "Department" means the | ||||||
13 | Department of Revenue of
this State.
| ||||||
14 | (6) Director. The term "Director" means the Director of | ||||||
15 | Revenue of this
State.
| ||||||
16 | (7) Fiduciary. The term "fiduciary" means a guardian, | ||||||
17 | trustee, executor,
administrator, receiver, or any person | ||||||
18 | acting in any fiduciary capacity for any
person.
| ||||||
19 | (8) Financial organization.
| ||||||
20 | (A) The term "financial organization" means
any
| ||||||
21 | bank, bank holding company, trust company, savings | ||||||
22 | bank, industrial bank,
land bank, safe deposit | ||||||
23 | company, private banker, savings and loan association,
| ||||||
24 | building and loan association, credit union, currency | ||||||
25 | exchange, cooperative
bank, small loan company, sales | ||||||
26 | finance company, investment company, or any
person |
| |||||||
| |||||||
1 | which is owned by a bank or bank holding company. For | ||||||
2 | the purpose of
this Section a "person" will include | ||||||
3 | only those persons which a bank holding
company may | ||||||
4 | acquire and hold an interest in, directly or | ||||||
5 | indirectly, under the
provisions of the Bank Holding | ||||||
6 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
7 | where interests in any person must be disposed of | ||||||
8 | within certain
required time limits under the Bank | ||||||
9 | Holding Company Act of 1956.
| ||||||
10 | (B) For purposes of subparagraph (A) of this | ||||||
11 | paragraph, the term
"bank" includes (i) any entity that | ||||||
12 | is regulated by the Comptroller of the
Currency under | ||||||
13 | the National Bank Act, or by the Federal Reserve Board, | ||||||
14 | or by
the
Federal Deposit Insurance Corporation and | ||||||
15 | (ii) any federally or State chartered
bank
operating as | ||||||
16 | a credit card bank.
| ||||||
17 | (C) For purposes of subparagraph (A) of this | ||||||
18 | paragraph, the term
"sales finance company" has the | ||||||
19 | meaning provided in the following item (i) or
(ii):
| ||||||
20 | (i) A person primarily engaged in one or more | ||||||
21 | of the following
businesses: the business of | ||||||
22 | purchasing customer receivables, the business
of | ||||||
23 | making loans upon the security of customer | ||||||
24 | receivables, the
business of making loans for the | ||||||
25 | express purpose of funding purchases of
tangible | ||||||
26 | personal property or services by the borrower, or |
| |||||||
| |||||||
1 | the business of
finance leasing. For purposes of | ||||||
2 | this item (i), "customer receivable"
means:
| ||||||
3 | (a) a retail installment contract or | ||||||
4 | retail charge agreement within
the
meaning
of | ||||||
5 | the Sales Finance Agency Act, the Retail | ||||||
6 | Installment Sales Act, or the
Motor Vehicle | ||||||
7 | Retail Installment Sales Act;
| ||||||
8 | (b) an installment, charge, credit, or | ||||||
9 | similar contract or agreement
arising from
the | ||||||
10 | sale of tangible personal property or services | ||||||
11 | in a transaction involving
a deferred payment | ||||||
12 | price payable in one or more installments | ||||||
13 | subsequent
to the sale; or
| ||||||
14 | (c) the outstanding balance of a contract | ||||||
15 | or agreement described in
provisions
(a) or (b) | ||||||
16 | of this item (i).
| ||||||
17 | A customer receivable need not provide for | ||||||
18 | payment of interest on
deferred
payments. A sales | ||||||
19 | finance company may purchase a customer receivable | ||||||
20 | from, or
make a loan secured by a customer | ||||||
21 | receivable to, the seller in the original
| ||||||
22 | transaction or to a person who purchased the | ||||||
23 | customer receivable directly or
indirectly from | ||||||
24 | that seller.
| ||||||
25 | (ii) A corporation meeting each of the | ||||||
26 | following criteria:
|
| |||||||
| |||||||
1 | (a) the corporation must be a member of an | ||||||
2 | "affiliated group" within
the
meaning of | ||||||
3 | Section 1504(a) of the Internal Revenue Code, | ||||||
4 | determined
without regard to Section 1504(b) | ||||||
5 | of the Internal Revenue Code;
| ||||||
6 | (b) more than 50% of the gross income of | ||||||
7 | the corporation for the
taxable
year
must be | ||||||
8 | interest income derived from qualifying loans. | ||||||
9 | A "qualifying
loan" is a loan made to a member | ||||||
10 | of the corporation's affiliated group that
| ||||||
11 | originates customer receivables (within the | ||||||
12 | meaning of item (i)) or to whom
customer | ||||||
13 | receivables originated by a member of the | ||||||
14 | affiliated group have been
transferred, to
the | ||||||
15 | extent the average outstanding balance of | ||||||
16 | loans from that corporation
to members of its | ||||||
17 | affiliated group during the taxable year do not | ||||||
18 | exceed
the limitation amount for that | ||||||
19 | corporation. The "limitation amount" for a
| ||||||
20 | corporation is the average outstanding | ||||||
21 | balances during the taxable year of
customer | ||||||
22 | receivables (within the meaning of item (i)) | ||||||
23 | originated by
all members of the affiliated | ||||||
24 | group.
If the average outstanding balances of | ||||||
25 | the
loans made by a corporation to members of | ||||||
26 | its affiliated group exceed the
limitation |
| |||||||
| |||||||
1 | amount, the interest income of that | ||||||
2 | corporation from qualifying
loans shall be | ||||||
3 | equal to its interest income from loans to | ||||||
4 | members of its
affiliated groups times a | ||||||
5 | fraction equal to the limitation amount | ||||||
6 | divided by
the average outstanding balances of | ||||||
7 | the loans made by that corporation to
members | ||||||
8 | of its affiliated group;
| ||||||
9 | (c) the total of all shareholder's equity | ||||||
10 | (including, without
limitation,
paid-in
| ||||||
11 | capital on common and preferred stock and | ||||||
12 | retained earnings) of the
corporation plus the | ||||||
13 | total of all of its loans, advances, and other
| ||||||
14 | obligations payable or owed to members of its | ||||||
15 | affiliated group may not
exceed 20% of the | ||||||
16 | total assets of the corporation at any time | ||||||
17 | during the tax
year; and
| ||||||
18 | (d) more than 50% of all interest-bearing | ||||||
19 | obligations of the
affiliated group payable to | ||||||
20 | persons outside the group determined in | ||||||
21 | accordance
with generally accepted accounting | ||||||
22 | principles must be obligations of the
| ||||||
23 | corporation.
| ||||||
24 | This amendatory Act of the 91st General Assembly is | ||||||
25 | declaratory of
existing
law.
| ||||||
26 | (D) Subparagraphs
(B) and (C) of this paragraph are |
| |||||||
| |||||||
1 | declaratory of
existing law and apply retroactively, | ||||||
2 | for all tax years beginning on or before
December 31, | ||||||
3 | 1996,
to all original returns, to all amended returns | ||||||
4 | filed no later than 30
days after the effective date of | ||||||
5 | this amendatory Act of 1996, and to all
notices issued | ||||||
6 | on or before the effective date of this amendatory Act | ||||||
7 | of 1996
under subsection (a) of Section 903, subsection | ||||||
8 | (a) of Section 904,
subsection (e) of Section 909, or | ||||||
9 | Section 912.
A taxpayer that is a "financial | ||||||
10 | organization" that engages in any transaction
with an | ||||||
11 | affiliate shall be a "financial organization" for all | ||||||
12 | purposes of this
Act.
| ||||||
13 | (E) For all tax years beginning on or
before | ||||||
14 | December 31, 1996, a taxpayer that falls within the | ||||||
15 | definition
of a
"financial organization" under | ||||||
16 | subparagraphs (B) or (C) of this paragraph, but
who | ||||||
17 | does
not fall within the definition of a "financial | ||||||
18 | organization" under the Proposed
Regulations issued by | ||||||
19 | the Department of Revenue on July 19, 1996, may
| ||||||
20 | irrevocably elect to apply the Proposed Regulations | ||||||
21 | for all of those years as
though the Proposed | ||||||
22 | Regulations had been lawfully promulgated, adopted, | ||||||
23 | and in
effect for all of those years. For purposes of | ||||||
24 | applying subparagraphs (B) or
(C) of
this
paragraph to | ||||||
25 | all of those years, the election allowed by this | ||||||
26 | subparagraph
applies only to the taxpayer making the |
| |||||||
| |||||||
1 | election and to those members of the
taxpayer's unitary | ||||||
2 | business group who are ordinarily required to | ||||||
3 | apportion
business income under the same subsection of | ||||||
4 | Section 304 of this Act as the
taxpayer making the | ||||||
5 | election. No election allowed by this subparagraph | ||||||
6 | shall
be made under a claim
filed under subsection (d) | ||||||
7 | of Section 909 more than 30 days after the
effective | ||||||
8 | date of this amendatory Act of 1996.
| ||||||
9 | (F) Finance Leases. For purposes of this | ||||||
10 | subsection, a finance lease
shall be treated as a loan | ||||||
11 | or other extension of credit, rather than as a
lease,
| ||||||
12 | regardless of how the transaction is characterized for | ||||||
13 | any other purpose,
including the purposes of any | ||||||
14 | regulatory agency to which the lessor is subject.
A | ||||||
15 | finance lease is any transaction in the form of a lease | ||||||
16 | in which the lessee
is treated as the owner of the | ||||||
17 | leased asset entitled to any deduction for
| ||||||
18 | depreciation allowed under Section 167 of the Internal | ||||||
19 | Revenue Code.
| ||||||
20 | (9) Fiscal year. The term "fiscal year" means an | ||||||
21 | accounting period of
12 months ending on the last day of | ||||||
22 | any month other than December.
| ||||||
23 | (9.5) Fixed place of business. The term "fixed place of | ||||||
24 | business" has the same meaning as that term is given in | ||||||
25 | Section 864 of the Internal Revenue Code and the related | ||||||
26 | Treasury regulations.
|
| |||||||
| |||||||
1 | (10) Includes and including. The terms "includes" and | ||||||
2 | "including" when
used in a definition contained in this Act | ||||||
3 | shall not be deemed to exclude
other things otherwise | ||||||
4 | within the meaning of the term defined.
| ||||||
5 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
6 | Code" means the
United States Internal Revenue Code of 1954 | ||||||
7 | or any successor law or laws
relating to federal income | ||||||
8 | taxes in effect for the taxable year.
| ||||||
9 | (11.5) Investment partnership. | ||||||
10 | (A) The term "investment partnership" means any | ||||||
11 | entity that is treated as a partnership for federal | ||||||
12 | income tax purposes that meets the following | ||||||
13 | requirements: | ||||||
14 | (i) no less than 90% of the partnership's cost | ||||||
15 | of its total assets consists of qualifying | ||||||
16 | investment securities, deposits at banks or other | ||||||
17 | financial institutions, and office space and | ||||||
18 | equipment reasonably necessary to carry on its | ||||||
19 | activities as an investment partnership; | ||||||
20 | (ii) no less than 90% of its gross income | ||||||
21 | consists of interest, dividends, and gains from | ||||||
22 | the sale or exchange of qualifying investment | ||||||
23 | securities; and
| ||||||
24 | (iii) the partnership is not a dealer in | ||||||
25 | qualifying investment securities. | ||||||
26 | (B) For purposes of this paragraph (11.5), the term |
| |||||||
| |||||||
1 | "qualifying investment securities" includes all of the | ||||||
2 | following:
| ||||||
3 | (i) common stock, including preferred or debt | ||||||
4 | securities convertible into common stock, and | ||||||
5 | preferred stock; | ||||||
6 | (ii) bonds, debentures, and other debt | ||||||
7 | securities; | ||||||
8 | (iii) foreign and domestic currency deposits | ||||||
9 | secured by federal, state, or local governmental | ||||||
10 | agencies; | ||||||
11 | (iv) mortgage or asset-backed securities | ||||||
12 | secured by federal, state, or local governmental | ||||||
13 | agencies; | ||||||
14 | (v) repurchase agreements and loan | ||||||
15 | participations; | ||||||
16 | (vi) foreign currency exchange contracts and | ||||||
17 | forward and futures contracts on foreign | ||||||
18 | currencies; | ||||||
19 | (vii) stock and bond index securities and | ||||||
20 | futures contracts and other similar financial | ||||||
21 | securities and futures contracts on those | ||||||
22 | securities;
| ||||||
23 | (viii) options for the purchase or sale of any | ||||||
24 | of the securities, currencies, contracts, or | ||||||
25 | financial instruments described in items (i) to | ||||||
26 | (vii), inclusive;
|
| |||||||
| |||||||
1 | (ix) regulated futures contracts;
| ||||||
2 | (x) commodities (not described in Section | ||||||
3 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
4 | futures, forwards, and options with respect to | ||||||
5 | such commodities, provided, however, that any item | ||||||
6 | of a physical commodity to which title is actually | ||||||
7 | acquired in the partnership's capacity as a dealer | ||||||
8 | in such commodity shall not be a qualifying | ||||||
9 | investment security;
| ||||||
10 | (xi) derivatives; and
| ||||||
11 | (xii) a partnership interest in another | ||||||
12 | partnership that is an investment partnership.
| ||||||
13 | (12) Mathematical error. The term "mathematical error" | ||||||
14 | includes the
following types of errors, omissions, or | ||||||
15 | defects in a return filed by a
taxpayer which prevents | ||||||
16 | acceptance of the return as filed for processing:
| ||||||
17 | (A) arithmetic errors or incorrect computations on | ||||||
18 | the return or
supporting schedules;
| ||||||
19 | (B) entries on the wrong lines;
| ||||||
20 | (C) omission of required supporting forms or | ||||||
21 | schedules or the omission
of the information in whole | ||||||
22 | or in part called for thereon; and
| ||||||
23 | (D) an attempt to claim, exclude, deduct, or | ||||||
24 | improperly report, in a
manner
directly contrary to the | ||||||
25 | provisions of the Act and regulations thereunder
any | ||||||
26 | item of income, exemption, deduction, or credit.
|
| |||||||
| |||||||
1 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
2 | means all income
other than business income or | ||||||
3 | compensation.
| ||||||
4 | (14) Nonresident. The term "nonresident" means a | ||||||
5 | person who is not a
resident.
| ||||||
6 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
7 | "incurred" and
"accrued"
shall be construed according to | ||||||
8 | the method of accounting upon the basis
of which the | ||||||
9 | person's base income is computed under this Act.
| ||||||
10 | (16) Partnership and partner. The term "partnership" | ||||||
11 | includes a syndicate,
group, pool, joint venture or other | ||||||
12 | unincorporated organization, through
or by means of which | ||||||
13 | any business, financial operation, or venture is carried
| ||||||
14 | on, and which is not, within the meaning of this Act, a | ||||||
15 | trust or estate
or a corporation; and the term "partner" | ||||||
16 | includes a member in such syndicate,
group, pool, joint | ||||||
17 | venture or organization.
| ||||||
18 | The term "partnership" includes any entity, including | ||||||
19 | a limited
liability company formed under the Illinois
| ||||||
20 | Limited Liability Company Act, classified as a partnership | ||||||
21 | for federal income tax purposes.
| ||||||
22 | The term "partnership" does not include a syndicate, | ||||||
23 | group, pool,
joint venture, or other unincorporated | ||||||
24 | organization established for the
sole purpose of playing | ||||||
25 | the Illinois State Lottery.
| ||||||
26 | (17) Part-year resident. The term "part-year resident" |
| |||||||
| |||||||
1 | means an individual
who became a resident during the | ||||||
2 | taxable year or ceased to be a resident
during the taxable | ||||||
3 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
4 | with presence in this State for other than a temporary or | ||||||
5 | transitory
purpose and ceases with absence from this State | ||||||
6 | for other than a temporary or
transitory purpose. Under | ||||||
7 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
8 | establishment of domicile in this State and ceases with the
| ||||||
9 | establishment of domicile in another State.
| ||||||
10 | (18) Person. The term "person" shall be construed to | ||||||
11 | mean and include
an individual, a trust, estate, | ||||||
12 | partnership, association, firm, company,
corporation, | ||||||
13 | limited liability company, or fiduciary. For purposes of | ||||||
14 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
15 | individual, (ii) a
corporation, (iii) an officer, agent, or | ||||||
16 | employee of a
corporation, (iv) a member, agent or employee | ||||||
17 | of a partnership, or (v)
a member,
manager, employee, | ||||||
18 | officer, director, or agent of a limited liability company
| ||||||
19 | who in such capacity commits an offense specified in | ||||||
20 | Section 1301 and 1302.
| ||||||
21 | (18A) Records. The term "records" includes all data | ||||||
22 | maintained by the
taxpayer, whether on paper, microfilm, | ||||||
23 | microfiche, or any type of
machine-sensible data | ||||||
24 | compilation.
| ||||||
25 | (19) Regulations. The term "regulations" includes | ||||||
26 | rules promulgated and
forms prescribed by the Department.
|
| |||||||
| |||||||
1 | (20) Resident. The term "resident" means:
| ||||||
2 | (A) an individual (i) who is
in this State for | ||||||
3 | other than a temporary or transitory purpose during the
| ||||||
4 | taxable year; or (ii) who is domiciled in this State | ||||||
5 | but is absent from
the State for a temporary or | ||||||
6 | transitory purpose during the taxable year;
| ||||||
7 | (B) The estate of a decedent who at his or her | ||||||
8 | death was domiciled in
this
State;
| ||||||
9 | (C) A trust created by a will of a decedent who at | ||||||
10 | his death was
domiciled
in this State; and
| ||||||
11 | (D) An irrevocable trust, the grantor of which was | ||||||
12 | domiciled in this
State
at the time such trust became | ||||||
13 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
14 | shall be considered irrevocable to the extent that the | ||||||
15 | grantor is
not treated as the owner thereof under | ||||||
16 | Sections 671 through 678 of the Internal
Revenue Code.
| ||||||
17 | (21) Sales. The term "sales" means all gross receipts | ||||||
18 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
19 | 303.
| ||||||
20 | (22) State. The term "state" when applied to a | ||||||
21 | jurisdiction other than
this State means any state of the | ||||||
22 | United States, the District of Columbia,
the Commonwealth | ||||||
23 | of Puerto Rico, any Territory or Possession of the United
| ||||||
24 | States, and any foreign country, or any political | ||||||
25 | subdivision of any of the
foregoing. For purposes of the | ||||||
26 | foreign tax credit under Section 601, the
term "state" |
| |||||||
| |||||||
1 | means any state of the United States, the District of | ||||||
2 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
3 | territory or possession of the
United States, or any | ||||||
4 | political subdivision of any of the foregoing,
effective | ||||||
5 | for tax years ending on or after December 31, 1989.
| ||||||
6 | (23) Taxable year. The term "taxable year" means the | ||||||
7 | calendar year, or
the fiscal year ending during such | ||||||
8 | calendar year, upon the basis of which
the base income is | ||||||
9 | computed under this Act. "Taxable year" means, in the
case | ||||||
10 | of a return made for a fractional part of a year under the | ||||||
11 | provisions
of this Act, the period for which such return is | ||||||
12 | made.
| ||||||
13 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
14 | subject to the tax
imposed by this Act.
| ||||||
15 | (25) International banking facility. The term | ||||||
16 | international banking
facility shall have the same meaning | ||||||
17 | as is set forth in the Illinois Banking
Act or as is set | ||||||
18 | forth in the laws of the United States or regulations of
| ||||||
19 | the Board of Governors of the Federal Reserve System.
| ||||||
20 | (26) Income Tax Return Preparer.
| ||||||
21 | (A) The term "income tax return preparer"
means any | ||||||
22 | person who prepares for compensation, or who employs | ||||||
23 | one or more
persons to prepare for compensation, any | ||||||
24 | return of tax imposed by this Act
or any claim for | ||||||
25 | refund of tax imposed by this Act. The preparation of a
| ||||||
26 | substantial portion of a return or claim for refund |
| |||||||
| |||||||
1 | shall be treated as
the preparation of that return or | ||||||
2 | claim for refund.
| ||||||
3 | (B) A person is not an income tax return preparer | ||||||
4 | if all he or she does
is
| ||||||
5 | (i) furnish typing, reproducing, or other | ||||||
6 | mechanical assistance;
| ||||||
7 | (ii) prepare returns or claims for refunds for | ||||||
8 | the employer by whom he
or she is regularly and | ||||||
9 | continuously employed;
| ||||||
10 | (iii) prepare as a fiduciary returns or claims | ||||||
11 | for refunds for any
person; or
| ||||||
12 | (iv) prepare claims for refunds for a taxpayer | ||||||
13 | in response to any
notice
of deficiency issued to | ||||||
14 | that taxpayer or in response to any waiver of
| ||||||
15 | restriction after the commencement of an audit of | ||||||
16 | that taxpayer or of another
taxpayer if a | ||||||
17 | determination in the audit of the other taxpayer | ||||||
18 | directly or
indirectly affects the tax liability | ||||||
19 | of the taxpayer whose claims he or she is
| ||||||
20 | preparing.
| ||||||
21 | (27) Unitary business group. | ||||||
22 | (A) The term "unitary business group" means
a group | ||||||
23 | of persons related through common ownership whose | ||||||
24 | business activities
are integrated with, dependent | ||||||
25 | upon and contribute to each other. The group
will not | ||||||
26 | include those members whose business activity outside |
| |||||||
| |||||||
1 | the United
States is 80% or more of any such member's | ||||||
2 | total business activity; for
purposes of this | ||||||
3 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
4 | business
activity within the United States shall be | ||||||
5 | measured by means of the factors
ordinarily applicable | ||||||
6 | under subsections (a), (b), (c), (d), or (h)
of Section
| ||||||
7 | 304 except that, in the case of members ordinarily | ||||||
8 | required to apportion
business income by means of the 3 | ||||||
9 | factor formula of property, payroll and sales
| ||||||
10 | specified in subsection (a) of Section 304, including | ||||||
11 | the
formula as weighted in subsection (h) of Section | ||||||
12 | 304, such members shall
not use the sales factor in the | ||||||
13 | computation and the results of the property
and payroll | ||||||
14 | factor computations of subsection (a) of Section 304 | ||||||
15 | shall be
divided by 2 (by one if either
the property or | ||||||
16 | payroll factor has a denominator of zero). The | ||||||
17 | computation
required by the preceding sentence shall, | ||||||
18 | in each case, involve the division of
the member's | ||||||
19 | property, payroll, or revenue miles in the United | ||||||
20 | States,
insurance premiums on property or risk in the | ||||||
21 | United States, or financial
organization business | ||||||
22 | income from sources within the United States, as the
| ||||||
23 | case may be, by the respective worldwide figures for | ||||||
24 | such items. Common
ownership in the case of | ||||||
25 | corporations is the direct or indirect control or
| ||||||
26 | ownership of more than 50% of the outstanding voting |
| |||||||
| |||||||
1 | stock of the persons
carrying on unitary business | ||||||
2 | activity. Unitary business activity can
ordinarily be | ||||||
3 | illustrated where the activities of the members are: | ||||||
4 | (1) in the
same general line (such as manufacturing, | ||||||
5 | wholesaling, retailing of tangible
personal property, | ||||||
6 | insurance, transportation or finance); or (2) are | ||||||
7 | steps in a
vertically structured enterprise or process | ||||||
8 | (such as the steps involved in the
production of | ||||||
9 | natural resources, which might include exploration, | ||||||
10 | mining,
refining, and marketing); and, in either | ||||||
11 | instance, the members are functionally
integrated | ||||||
12 | through the exercise of strong centralized management | ||||||
13 | (where, for
example, authority over such matters as | ||||||
14 | purchasing, financing, tax compliance,
product line, | ||||||
15 | personnel, marketing and capital investment is not | ||||||
16 | left to each
member).
| ||||||
17 | (B) In no event, for taxable years ending prior to | ||||||
18 | December 31, 2017, shall any
unitary business group | ||||||
19 | include members
which are ordinarily required to | ||||||
20 | apportion business income under different
subsections | ||||||
21 | of Section 304 except that for tax years ending on or | ||||||
22 | after
December 31, 1987 this prohibition shall not | ||||||
23 | apply to a holding company that would otherwise be a | ||||||
24 | member of a unitary business group with taxpayers that | ||||||
25 | apportion business income under any of subsections | ||||||
26 | (b), (c), (c-1), or (d) of Section 304. If a unitary |
| |||||||
| |||||||
1 | business
group would, but for the preceding sentence, | ||||||
2 | include members that are
ordinarily required to | ||||||
3 | apportion business income under different subsections | ||||||
4 | of
Section 304, then for each subsection of Section 304 | ||||||
5 | for which there are two or
more members, there shall be | ||||||
6 | a separate unitary business group composed of such
| ||||||
7 | members. For purposes of the preceding two sentences, a | ||||||
8 | member is "ordinarily
required to apportion business | ||||||
9 | income" under a particular subsection of Section
304 if | ||||||
10 | it would be required to use the apportionment method | ||||||
11 | prescribed by such
subsection except for the fact that | ||||||
12 | it derives business income solely from
Illinois. As | ||||||
13 | used in this paragraph, for taxable years ending before | ||||||
14 | December 31, 2017, the phrase "United States" means | ||||||
15 | only the 50 states and the District of Columbia, but | ||||||
16 | does not include any territory or possession of the | ||||||
17 | United States or any area over which the United States | ||||||
18 | has asserted jurisdiction or claimed exclusive rights | ||||||
19 | with respect to the exploration for or exploitation of | ||||||
20 | natural resources.
For taxable years ending on or after | ||||||
21 | December 31, 2017, the phrase "United States", as used | ||||||
22 | in this paragraph, means only the 50 states, the | ||||||
23 | District of Columbia, and any area over which the | ||||||
24 | United States has asserted jurisdiction or claimed | ||||||
25 | exclusive rights with respect to the exploration for or | ||||||
26 | exploitation of natural resources, but does not |
| |||||||
| |||||||
1 | include any territory or possession of the United | ||||||
2 | States. | ||||||
3 | (C) Holding companies. | ||||||
4 | (i) For purposes of this subparagraph, a | ||||||
5 | "holding company" is a corporation (other than a | ||||||
6 | corporation that is a financial organization under | ||||||
7 | paragraph (8) of this subsection (a) of Section | ||||||
8 | 1501 because it is a bank holding company under the | ||||||
9 | provisions of the Bank Holding Company Act of 1956 | ||||||
10 | (12 U.S.C. 1841, et seq.) or because it is owned by | ||||||
11 | a bank or a bank holding company) that owns a | ||||||
12 | controlling interest in one or more other | ||||||
13 | taxpayers ("controlled taxpayers"); that, during | ||||||
14 | the period that includes the taxable year and the 2 | ||||||
15 | immediately preceding taxable years or, if the | ||||||
16 | corporation was formed during the current or | ||||||
17 | immediately preceding taxable year, the taxable | ||||||
18 | years in which the corporation has been in | ||||||
19 | existence, derived substantially all its gross | ||||||
20 | income from dividends, interest, rents, royalties, | ||||||
21 | fees or other charges received from controlled | ||||||
22 | taxpayers for the provision of services, and gains | ||||||
23 | on the sale or other disposition of interests in | ||||||
24 | controlled taxpayers or in property leased or | ||||||
25 | licensed to controlled taxpayers or used by the | ||||||
26 | taxpayer in providing services to controlled |
| |||||||
| |||||||
1 | taxpayers; and that incurs no substantial expenses | ||||||
2 | other than expenses (including interest and other | ||||||
3 | costs of borrowing) incurred in connection with | ||||||
4 | the acquisition and holding of interests in | ||||||
5 | controlled taxpayers and in the provision of | ||||||
6 | services to controlled taxpayers or in the leasing | ||||||
7 | or licensing of property to controlled taxpayers. | ||||||
8 | (ii) The income of a holding company which is a | ||||||
9 | member of more than one unitary business group | ||||||
10 | shall be included in each unitary business group of | ||||||
11 | which it is a member on a pro rata basis, by | ||||||
12 | including in each unitary business group that | ||||||
13 | portion of the base income of the holding company | ||||||
14 | that bears the same proportion to the total base | ||||||
15 | income of the holding company as the gross receipts | ||||||
16 | of the unitary business group bears to the combined | ||||||
17 | gross receipts of all unitary business groups (in | ||||||
18 | both cases without regard to the holding company) | ||||||
19 | or on any other reasonable basis, consistently | ||||||
20 | applied. | ||||||
21 | (iii) A holding company shall apportion its | ||||||
22 | business income under the subsection of Section | ||||||
23 | 304 used by the other members of its unitary | ||||||
24 | business group. The apportionment factors of a | ||||||
25 | holding company which would be a member of more | ||||||
26 | than one unitary business group shall be included |
| |||||||
| |||||||
1 | with the apportionment factors of each unitary | ||||||
2 | business group of which it is a member on a pro | ||||||
3 | rata basis using the same method used in clause | ||||||
4 | (ii). | ||||||
5 | (iv) The provisions of this subparagraph (C) | ||||||
6 | are intended to clarify existing law. | ||||||
7 | (D) If including the base income and factors of a | ||||||
8 | holding company in more than one unitary business group | ||||||
9 | under subparagraph (C) does not fairly reflect the | ||||||
10 | degree of integration between the holding company and | ||||||
11 | one or more of the unitary business groups, the | ||||||
12 | dependence of the holding company and one or more of | ||||||
13 | the unitary business groups upon each other, or the | ||||||
14 | contributions between the holding company and one or | ||||||
15 | more of the unitary business groups, the holding | ||||||
16 | company may petition the Director, under the | ||||||
17 | procedures provided under Section 304(f), for | ||||||
18 | permission to include all base income and factors of | ||||||
19 | the holding company only with members of a unitary | ||||||
20 | business group apportioning their business income | ||||||
21 | under one subsection of subsections (a), (b), (c), or | ||||||
22 | (d) of Section 304. If the petition is granted, the | ||||||
23 | holding company shall be included in a unitary business | ||||||
24 | group only with persons apportioning their business | ||||||
25 | income under the selected subsection of Section 304 | ||||||
26 | until the Director grants a petition of the holding |
| |||||||
| |||||||
1 | company either to be included in more than one unitary | ||||||
2 | business group under subparagraph (C) or to include its | ||||||
3 | base income and factors only with members of a unitary | ||||||
4 | business group apportioning their business income | ||||||
5 | under a different subsection of Section 304. | ||||||
6 | (E) If the unitary business group members' | ||||||
7 | accounting periods differ,
the common parent's | ||||||
8 | accounting period or, if there is no common parent, the
| ||||||
9 | accounting period of the member that is expected to | ||||||
10 | have, on a recurring basis,
the greatest Illinois | ||||||
11 | income tax liability must be used to determine whether | ||||||
12 | to
use the apportionment method provided in subsection | ||||||
13 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
14 | against membership in a unitary business group for | ||||||
15 | taxpayers
ordinarily required to apportion income | ||||||
16 | under different subsections of Section
304 does not | ||||||
17 | apply to taxpayers required to apportion income under | ||||||
18 | subsection
(a) and subsection (h) of Section
304. The | ||||||
19 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
20 | years ending on or after December 31, 1998.
| ||||||
21 | (28) Subchapter S corporation. The term "Subchapter S | ||||||
22 | corporation"
means a corporation for which there is in | ||||||
23 | effect an election under Section
1362 of the Internal | ||||||
24 | Revenue Code, or for which there is a federal election
to | ||||||
25 | opt out of the provisions of the Subchapter S Revision Act | ||||||
26 | of 1982 and
have applied instead the prior federal |
| |||||||
| |||||||
1 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
2 | (30) Foreign person. The term "foreign person" means | ||||||
3 | any person who is a nonresident alien individual and any | ||||||
4 | nonindividual entity, regardless of where created or | ||||||
5 | organized, whose business activity outside the United | ||||||
6 | States is 80% or more of the entity's total business | ||||||
7 | activity.
| ||||||
8 | (b) Other definitions.
| ||||||
9 | (1) Words denoting number, gender, and so forth,
when | ||||||
10 | used in this Act, where not otherwise distinctly expressed | ||||||
11 | or manifestly
incompatible with the intent thereof:
| ||||||
12 | (A) Words importing the singular include and apply | ||||||
13 | to several persons,
parties or things;
| ||||||
14 | (B) Words importing the plural include the | ||||||
15 | singular; and
| ||||||
16 | (C) Words importing the masculine gender include | ||||||
17 | the feminine as well.
| ||||||
18 | (2) "Company" or "association" as including successors | ||||||
19 | and assigns. The
word "company" or "association", when used | ||||||
20 | in reference to a corporation,
shall be deemed to embrace | ||||||
21 | the words "successors and assigns of such company
or | ||||||
22 | association", and in like manner as if these last-named | ||||||
23 | words, or words
of similar import, were expressed.
| ||||||
24 | (3) Other terms. Any term used in any Section of this | ||||||
25 | Act with respect
to the application of, or in connection |
| |||||||
| |||||||
1 | with, the provisions of any other
Section of this Act shall | ||||||
2 | have the same meaning as in such other Section.
| ||||||
3 | (Source: P.A. 99-213, eff. 7-31-15.)
| ||||||
4 | ARTICLE 25. AMENDATORY PROVISIONS; STATE TAX LIEN REGISTRY | ||||||
5 | Section 25-5. The Illinois Income Tax Act is amended by | ||||||
6 | changing Sections 1102, 1103, and 1105 as follows:
| ||||||
7 | (35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
| ||||||
8 | Sec. 1102. Jeopardy Assessments.
| ||||||
9 | (a) Jeopardy assessment and lien.
| ||||||
10 | (1) Assessment. If the Department finds that a taxpayer | ||||||
11 | is about to
depart from the State, or to conceal himself or | ||||||
12 | his property, or to do any
other act tending to prejudice | ||||||
13 | or to render wholly or partly ineffectual
proceedings to | ||||||
14 | collect any amount of tax or penalties imposed under this
| ||||||
15 | Act unless court proceedings are brought without delay, or | ||||||
16 | if the
Department finds that the collection of such amount | ||||||
17 | will be jeopardized by
delay, the Department shall give the | ||||||
18 | taxpayer notice of such findings and
shall make demand for | ||||||
19 | immediate return and payment of such amount,
whereupon such | ||||||
20 | amount shall be deemed assessed and shall become | ||||||
21 | immediately
due and payable.
| ||||||
22 | (2) Filing of lien. If the taxpayer, within 5 days | ||||||
23 | after such notice
(or within such extension of time as the |
| |||||||
| |||||||
1 | Department may grant), does not
comply with such notice or | ||||||
2 | show to the Department that the findings in such
notice are | ||||||
3 | erroneous, the Department may file a notice of jeopardy
| ||||||
4 | assessment lien in the State Tax Lien Registry office of | ||||||
5 | the recorder of the county in
which any property of the | ||||||
6 | taxpayer may be located and shall notify the
taxpayer of | ||||||
7 | such filing. Such jeopardy assessment lien shall have the | ||||||
8 | same
scope and effect as a statutory lien under this Act.
| ||||||
9 | The taxpayer is liable for any administrative fee imposed | ||||||
10 | by the Department by rule in connection with the State Tax | ||||||
11 | Lien Registry the filing fee incurred by the Department for
| ||||||
12 | filing the lien and the filing fee incurred by the | ||||||
13 | Department to file the
release of that lien . The filing | ||||||
14 | fees shall be paid to the Department in
addition to payment | ||||||
15 | of the tax, penalty, and interest included in the amount of
| ||||||
16 | the lien.
| ||||||
17 | (b) Termination of taxable year. In the case of a tax for a | ||||||
18 | current
taxable year, the Director shall declare the taxable | ||||||
19 | period of the taxpayer
immediately terminated and his notice | ||||||
20 | and demand for a return and immediate
payment of the tax shall | ||||||
21 | relate to the period declared terminated,
including therein | ||||||
22 | income accrued and deductions incurred up to the date of
| ||||||
23 | termination if not otherwise properly includible or deductible | ||||||
24 | in respect
of such taxable year.
| ||||||
25 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
26 | some or
all of the amount for which the jeopardy assessment |
| |||||||
| |||||||
1 | lien against him has
been filed, or that no jeopardy to the | ||||||
2 | revenue in fact exists, he may
protest within 20 days after | ||||||
3 | being notified by the Department of the filing
of such jeopardy | ||||||
4 | assessment lien and request a hearing, whereupon the
Department | ||||||
5 | shall hold a hearing in conformity with the provisions of
| ||||||
6 | section 908 and, pursuant thereto, shall notify the taxpayer of | ||||||
7 | its
decision as to whether or not such jeopardy assessment lien | ||||||
8 | will be
released.
| ||||||
9 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
10 | (35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
| ||||||
11 | Sec. 1103. Filing and Priority of Liens.
| ||||||
12 | (a) Filing in the State Tax Lien Registry with Recorder .
| ||||||
13 | Nothing in this Article shall be construed
to give the | ||||||
14 | Department a preference over the rights of any bona fide
| ||||||
15 | purchaser, holder of a security interest, mechanics lienor, | ||||||
16 | mortgagee,
or judgment lien creditor arising prior
to the | ||||||
17 | filing of a regular notice of lien or a notice of jeopardy
| ||||||
18 | assessment lien in the State Tax Lien Registry office of the | ||||||
19 | recorder in the county in
which the property subject to the | ||||||
20 | lien is located . For purposes of this
Section section , the term | ||||||
21 | "bona fide," shall not include any mortgage of real or
personal | ||||||
22 | property or any other credit transaction that results in the
| ||||||
23 | mortgagee or the holder of the security acting as trustee for | ||||||
24 | unsecured
creditors of the taxpayer mentioned in the notice of | ||||||
25 | lien who executed such
chattel or real property mortgage or the |
| |||||||
| |||||||
1 | document evidencing such credit
transaction. Such lien shall be | ||||||
2 | inferior to the lien of general taxes,
special assessments and | ||||||
3 | special taxes heretofore or hereafter levied by any
political | ||||||
4 | subdivision of this State.
| ||||||
5 | (b) Filing in the State Tax Lien Registry with Registrar . | ||||||
6 | In case title to land to be affected by
the notice of lien or | ||||||
7 | notice of jeopardy assessment lien is registered
under the | ||||||
8 | provisions of "An Act concerning land titles," approved May 1,
| ||||||
9 | 1897, as amended, such notice shall also be filed in the State | ||||||
10 | Tax Lien Registry office of the
Registrar of Titles of the | ||||||
11 | county within which the property subject to the
lien is | ||||||
12 | situated and shall be entered upon the register of titles as a
| ||||||
13 | memorial of charge upon each folium of the register of titles | ||||||
14 | affected by
such notice , and the Department shall not have a | ||||||
15 | preference over the rights
of any bona fide purchaser, | ||||||
16 | mortgagee, judgment creditor or other lien
holder arising prior | ||||||
17 | to the registration of such notice.
| ||||||
18 | (c) Index. The Department of Revenue shall maintain a State | ||||||
19 | Tax Lien Index of all tax liens filed in the State Tax Lien | ||||||
20 | Registry as provided for by the State Tax Lien Registration | ||||||
21 | Act. The recorder of each county shall procure a file
labeled | ||||||
22 | "State Tax Lien Notices" and an index book labeled "State Tax | ||||||
23 | Lien
Index." When notice of any lien or jeopardy assessment | ||||||
24 | lien is presented to
him for filing, he shall file it in | ||||||
25 | numerical order in the file and shall
enter it alphabetically | ||||||
26 | in the index. The entry shall show the name and
last known |
| |||||||
| |||||||
1 | address of the person named in the notice, the serial number of
| ||||||
2 | the notice, the date and hour of filing, whether it is a | ||||||
3 | regular lien or a
jeopardy assessment lien, and the amount of | ||||||
4 | tax and penalty due and unpaid,
plus the amount of interest due | ||||||
5 | at the time when the notice of lien or
jeopardy assessment is | ||||||
6 | filed.
| ||||||
7 | (d) (Blank). No recorder or registrar of titles of any | ||||||
8 | county shall require
that the Department pay any costs or fees | ||||||
9 | in connection with recordation of
any notice or other document | ||||||
10 | filed by the Department under this Act at the
time such notice | ||||||
11 | or other document is presented for recordation. The
recorder or | ||||||
12 | registrar of each county, in order to receive payment for fees
| ||||||
13 | or costs incurred by the Department, shall present the | ||||||
14 | Department with
monthly statements indicating the amount of | ||||||
15 | fees and costs incurred by the
Department and for which no | ||||||
16 | payment has been received.
This amendatory Act of 1987 applies | ||||||
17 | to all liens heretofore or hereafter filed.
| ||||||
18 | (e) The taxpayer is liable for any the filing fees imposed | ||||||
19 | fee incurred by the Department
for filing the lien in the State | ||||||
20 | Tax Lien Registry and any the filing fees imposed fee incurred | ||||||
21 | by the Department for to file the
release of that lien. The | ||||||
22 | filing fees shall be paid to the Department in
addition to | ||||||
23 | payment of the tax, penalty, and interest included in the | ||||||
24 | amount of
the lien.
| ||||||
25 | (Source: P.A. 92-826, eff. 1-1-03.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
| ||||||
2 | Sec. 1105. Release of Liens.
| ||||||
3 | (a) In general.
Upon payment by the taxpayer to the | ||||||
4 | Department in cash or by guaranteed
remittance of an amount | ||||||
5 | representing the filing fees and charges for the lien
and the | ||||||
6 | filing fees and charges for the release of that lien,
the | ||||||
7 | Department shall release all or any portion of
the property | ||||||
8 | subject to any lien provided for in this Act
and file that | ||||||
9 | complete or partial release of lien in the State Tax Lien | ||||||
10 | Registry with the recorder of the
county where that lien was | ||||||
11 | filed
if it determines
that the release will not endanger or | ||||||
12 | jeopardize the collection of the
amount secured thereby.
| ||||||
13 | (b) Judicial determination. If on judicial review the final | ||||||
14 | judgment
of the court is that the taxpayer does not owe some or | ||||||
15 | all of the amount
secured by the lien against him, or that no | ||||||
16 | jeopardy to the revenue exists,
the Department shall release | ||||||
17 | its lien to the extent of such finding of
nonliability, or to | ||||||
18 | the extent of such finding of no jeopardy to the
revenue.
The | ||||||
19 | taxpayer shall, however, be liable for the filing fee imposed | ||||||
20 | paid by the
Department to file the lien and the filing fee | ||||||
21 | imposed to release required to file a release of
the lien. The | ||||||
22 | filing fees shall be paid to the Department.
| ||||||
23 | (c) Payment. The Department shall also release its jeopardy
| ||||||
24 | assessment lien against the taxpayer whenever the tax and | ||||||
25 | penalty covered
by such lien, plus any interest which may be | ||||||
26 | due
and an amount representing the filing fee to file the lien |
| |||||||
| |||||||
1 | and the filing fee
imposed to release required to file a | ||||||
2 | release of that lien, are paid
by the taxpayer to the | ||||||
3 | Department in cash or by guaranteed remittance.
| ||||||
4 | (d) Certificate of release. The Department shall issue a | ||||||
5 | certificate
of complete or partial release of the lien
upon | ||||||
6 | payment by the taxpayer to the Department in cash or by | ||||||
7 | guaranteed
remittance of an amount representing the filing fee | ||||||
8 | imposed paid by the Department to
file the lien and the filing | ||||||
9 | fee imposed to release required to file the release of that | ||||||
10 | lien:
| ||||||
11 | (1) to the extent that the fair market value of any | ||||||
12 | property subject to
the lien exceeds the amount of the lien | ||||||
13 | plus the amount of all prior liens
upon such property;
| ||||||
14 | (2) to the extent that such lien shall become | ||||||
15 | unenforceable;
| ||||||
16 | (3) to the extent that the amount of such lien is paid | ||||||
17 | by the person
whose property is subject to such lien, | ||||||
18 | together with any interest and penalty
which
may become due | ||||||
19 | under this Act between the date when the notice of lien is
| ||||||
20 | filed and the date when the amount of such lien is paid;
| ||||||
21 | (4) to the extent that there is furnished to the | ||||||
22 | Department on a form to
be approved and with a surety or | ||||||
23 | sureties satisfactory to the Department a
bond that is | ||||||
24 | conditioned upon the payment of the amount of such lien,
| ||||||
25 | together with any interest which may become due under this | ||||||
26 | Act after the
notice of lien is filed, but before the |
| |||||||
| |||||||
1 | amount thereof is fully paid;
| ||||||
2 | (5) to the extent and under the circumstances specified | ||||||
3 | in this Section.
| ||||||
4 | A certificate of complete or partial release of any lien | ||||||
5 | shall be held
conclusive that the lien upon the property | ||||||
6 | covered by the certificate is
extinguished to the extent | ||||||
7 | indicated by such certificate.
| ||||||
8 | Such release of lien shall be issued to the person, or his | ||||||
9 | agent, against
whom the lien was obtained and shall contain in | ||||||
10 | legible letters a statement as
follows:
| ||||||
11 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
12 | BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||||||
13 | OR THE REGISTRAR
| ||||||
14 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||||||
15 | (e) Filing. When a certificate of complete or partial | ||||||
16 | release of lien
issued by the Department is filed in the State | ||||||
17 | Tax Lien Registry, the Department presented for filing in the | ||||||
18 | office of the
recorder or Registrar of Titles where a notice of | ||||||
19 | lien or notice
of jeopardy assessment lien was filed:
| ||||||
20 | (1) the recorder, in the case of nonregistered | ||||||
21 | property, shall
permanently attach the certificate of | ||||||
22 | release to the notice of lien or
notice of jeopardy | ||||||
23 | assessment lien and shall enter the certificate of
release | ||||||
24 | and the date in the "State Tax Lien Index" on the line | ||||||
25 | where the
notice of lien or notice of jeopardy assessment | ||||||
26 | lien is entered . ; and
|
| |||||||
| |||||||
1 | (2) in the case of registered property, the Registrar | ||||||
2 | of Titles shall
file and enter upon each folium of the | ||||||
3 | register of titles affected thereby
a memorial of the | ||||||
4 | certificate of release which memorial when so entered
shall | ||||||
5 | act as a release pro tanto of any memorial of such notice | ||||||
6 | of lien or
notice of jeopardy assessment lien previously | ||||||
7 | filed and registered.
| ||||||
8 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
9 | Section 25-10. The Retailers' Occupation Tax Act is amended | ||||||
10 | by changing Sections 5a, 5b, and 5c as follows:
| ||||||
11 | (35 ILCS 120/5a) (from Ch. 120, par. 444a)
| ||||||
12 | Sec. 5a.
The Department shall have a lien for the tax | ||||||
13 | herein imposed or any
portion thereof, or for any penalty | ||||||
14 | provided for in this Act, or for any
amount of interest which | ||||||
15 | may be due as provided for in Section 5 of this
Act, upon all | ||||||
16 | the real and personal property of any person to whom a
final | ||||||
17 | assessment or revised final assessment has been issued as | ||||||
18 | provided in
this Act, or whenever a return is filed without | ||||||
19 | payment of the tax or
penalty shown therein to be due, | ||||||
20 | including all such property of such
persons acquired after | ||||||
21 | receipt of such assessment or filing of such return.
The | ||||||
22 | taxpayer is liable for the filing fee imposed incurred by the | ||||||
23 | Department for
filing the lien and the filing fee imposed | ||||||
24 | incurred by the Department to file the
release the of that |
| |||||||
| |||||||
1 | lien. The filing fees shall be paid to the Department in
| ||||||
2 | addition to payment of the tax, penalty, and interest included | ||||||
3 | in the amount of
the lien.
| ||||||
4 | However, where the lien arises because of the issuance of a | ||||||
5 | final
assessment or revised final assessment by the Department, | ||||||
6 | such lien shall
not attach and the notice hereinafter referred | ||||||
7 | to in this Section shall not
be filed until all proceedings in | ||||||
8 | court for review of such final assessment
or revised final | ||||||
9 | assessment have terminated or the time for the taking
thereof | ||||||
10 | has expired without such proceedings being instituted.
| ||||||
11 | Upon the granting of a rehearing or departmental review | ||||||
12 | pursuant to
Section 4 or Section 5 of this Act after a lien has | ||||||
13 | attached, such lien
shall remain in full force except to the | ||||||
14 | extent to which the final
assessment may be reduced by a | ||||||
15 | revised final assessment following such
rehearing or review.
| ||||||
16 | The lien created by the issuance of a final assessment | ||||||
17 | shall terminate
unless a notice of lien is filed, as provided | ||||||
18 | in Section 5b hereof,
within 3 years from the date all | ||||||
19 | proceedings in court for the review of
such final assessment | ||||||
20 | have terminated or the time for the taking thereof
has expired | ||||||
21 | without such proceedings being instituted, or (in the case of a
| ||||||
22 | revised final assessment issued pursuant to a rehearing or | ||||||
23 | departmental
review) within 3 years from the date all | ||||||
24 | proceedings in court for the
review of such revised final | ||||||
25 | assessment have terminated or the time for the
taking thereof | ||||||
26 | has expired without such proceedings being instituted; and
|
| |||||||
| |||||||
1 | where the lien results from the filing of a return without | ||||||
2 | payment of the
tax or penalty shown therein to be due, the lien | ||||||
3 | shall terminate unless a
notice of lien is filed, as provided | ||||||
4 | in Section 5b hereof, within 3 years
from the date when such | ||||||
5 | return is filed with the Department: Provided that
the time | ||||||
6 | limitation period on the Department's right to file a notice of
| ||||||
7 | lien shall not run (1) during any period of time in which the | ||||||
8 | order of any
court has the effect of enjoining or restraining | ||||||
9 | the Department from filing
such notice of lien, or (2) during | ||||||
10 | the term of a repayment plan that taxpayer has entered into | ||||||
11 | with the Department, as long as taxpayer remains in compliance | ||||||
12 | with the terms of the repayment plan.
| ||||||
13 | If the Department finds that a taxpayer is about to depart | ||||||
14 | from the
State, or to conceal himself or his property, or to do | ||||||
15 | any other act
tending to prejudice or to render wholly or | ||||||
16 | partly ineffectual proceedings
to collect such tax unless such | ||||||
17 | proceedings are brought without delay, or
if the Department | ||||||
18 | finds that the collection of the amount due from any
taxpayer | ||||||
19 | will be jeopardized by delay, the Department shall give the
| ||||||
20 | taxpayer notice of such findings and shall make demand for | ||||||
21 | immediate return
and payment of such tax, whereupon such tax | ||||||
22 | shall become immediately due
and payable. If the taxpayer, | ||||||
23 | within 5 days after such notice (or within
such extension of | ||||||
24 | time as the Department may grant), does not comply with
such | ||||||
25 | notice or show to the Department that the findings in such | ||||||
26 | notice are
erroneous, the Department may file a notice of |
| |||||||
| |||||||
1 | jeopardy assessment lien in
the State Tax Lien Registry office | ||||||
2 | of the recorder of the county in which any property of
the | ||||||
3 | taxpayer may be located and shall notify the taxpayer of such | ||||||
4 | filing.
Such jeopardy assessment lien shall have the same scope | ||||||
5 | and effect as the
statutory lien hereinbefore provided for in | ||||||
6 | this Section.
| ||||||
7 | If the taxpayer believes that he does not owe some or all | ||||||
8 | of the tax for
which the jeopardy assessment lien against him | ||||||
9 | has been filed, or that no
jeopardy to the revenue in fact | ||||||
10 | exists, he may protest within 20 days after
being notified by | ||||||
11 | the Department of the filing of such jeopardy assessment
lien | ||||||
12 | and request a hearing, whereupon the Department shall hold a | ||||||
13 | hearing
in conformity with the provisions of this Act and, | ||||||
14 | pursuant thereto, shall
notify the taxpayer of its findings as | ||||||
15 | to whether or not such jeopardy
assessment lien will be | ||||||
16 | released. If not, and if the taxpayer is aggrieved
by this | ||||||
17 | decision, he may file an action for judicial review
of such | ||||||
18 | final
determination of the Department in accordance with | ||||||
19 | Section 12 of this Act
and the Administrative Review Law. | ||||||
20 | On and after July 1, 2013, protests concerning matters that | ||||||
21 | are subject to the jurisdiction of the Illinois Independent Tax | ||||||
22 | Tribunal shall be filed with the Tribunal, and hearings on | ||||||
23 | those matters shall be held before the Tribunal in accordance | ||||||
24 | with the Illinois Independent Tax Tribunal Act of 2012. The | ||||||
25 | Tribunal shall
notify the taxpayer of its findings as to | ||||||
26 | whether or not such jeopardy
assessment lien will be released. |
| |||||||
| |||||||
1 | If not, and if the taxpayer is aggrieved
by this decision, he | ||||||
2 | may file an action for judicial review
of such final
| ||||||
3 | determination of the Department in accordance with Section 12 | ||||||
4 | of this Act
and the Illinois Independent Tax Tribunal Act of | ||||||
5 | 2012. | ||||||
6 | With respect to protests filed with the Department prior to | ||||||
7 | July 1, 2013 that would otherwise be subject to the | ||||||
8 | jurisdiction of the Illinois Independent Tax Tribunal, the | ||||||
9 | taxpayer may elect to be subject to the provisions of the | ||||||
10 | Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||||||
11 | after July 1, 2013, but not later than 30 days after the date | ||||||
12 | on which the protest was filed. If made, the election shall be | ||||||
13 | irrevocable.
| ||||||
14 | If, pursuant to such hearing (or after an independent | ||||||
15 | determination of
the facts by the Department without a | ||||||
16 | hearing), the Department or the Tribunal determines
that some | ||||||
17 | or all of the tax covered by the jeopardy assessment lien is | ||||||
18 | not
owed by the taxpayer, or that no jeopardy to the revenue | ||||||
19 | exists, or if on
judicial review the final judgment of the | ||||||
20 | court is that the taxpayer does
not owe some or all of the tax | ||||||
21 | covered by the jeopardy assessment lien
against him, or that no | ||||||
22 | jeopardy to the revenue exists, the Department
shall release | ||||||
23 | its jeopardy assessment lien to the extent of such finding of
| ||||||
24 | nonliability for the tax, or to the extent of such finding of | ||||||
25 | no jeopardy
to the revenue.
| ||||||
26 | The Department shall also release its jeopardy assessment |
| |||||||
| |||||||
1 | lien against
the taxpayer whenever the tax and penalty covered | ||||||
2 | by such lien, plus any
interest which may be due, are paid
and | ||||||
3 | the taxpayer has paid the Department in cash or by guaranteed | ||||||
4 | remittance
an amount representing the filing fee for the lien | ||||||
5 | and the filing fee for the
release of that lien. The Department | ||||||
6 | shall file that release of lien in the State Tax Lien Registry | ||||||
7 | with the
recorder of the county where that lien was filed .
| ||||||
8 | Nothing in this Section shall be construed to give the | ||||||
9 | Department a
preference over the rights of any bona fide | ||||||
10 | purchaser, holder of a
security interest, mechanics | ||||||
11 | lienholder, mortgagee, or judgment lien
creditor arising prior | ||||||
12 | to the filing of a regular
notice of lien or a notice of | ||||||
13 | jeopardy assessment lien in the State Tax Lien Registry office | ||||||
14 | of the
recorder in the county in which the property subject to | ||||||
15 | the lien
is located : Provided, however, that the word "bona | ||||||
16 | fide", as used in this
Section shall not include any mortgage | ||||||
17 | of real or personal property or any
other credit transaction | ||||||
18 | that results in the mortgagee or the holder of the
security | ||||||
19 | acting as trustee for unsecured creditors of the taxpayer
| ||||||
20 | mentioned in the notice of lien who executed such chattel or | ||||||
21 | real property
mortgage or the document evidencing such credit | ||||||
22 | transaction. Such lien
shall be inferior to the lien of general | ||||||
23 | taxes, special assessments and
special taxes heretofore or | ||||||
24 | hereafter levied by any political subdivision
of this State.
| ||||||
25 | In case title to land to be affected by the notice of lien | ||||||
26 | or notice of
jeopardy assessment lien is registered under the |
| |||||||
| |||||||
1 | provisions of "An Act
concerning land titles", approved May 1, | ||||||
2 | 1897, as amended, such notice
shall also be filed in the State | ||||||
3 | Tax Lien Registry office of the Registrar of Titles of the | ||||||
4 | county
within which the property subject to the lien is | ||||||
5 | situated and shall be
entered upon the register of titles as a | ||||||
6 | memorial or charge upon each
folium of the register of titles | ||||||
7 | affected by such notice , and the
Department shall not have a | ||||||
8 | preference over the rights of any bona fide
purchaser, | ||||||
9 | mortgagee, judgment creditor or other lien holder arising prior
| ||||||
10 | to the registration of such notice: Provided, however, that the | ||||||
11 | word "bona
fide" shall not include any mortgage of real or | ||||||
12 | personal property or any
other credit transaction that results | ||||||
13 | in the mortgagee or the holder of the
security acting as | ||||||
14 | trustee for unsecured creditors of the taxpayer
mentioned in | ||||||
15 | the notice of lien who executed such chattel or real property
| ||||||
16 | mortgage or the document evidencing such credit transaction.
| ||||||
17 | Such regular lien or jeopardy assessment lien shall not be | ||||||
18 | effective
against any purchaser with respect to any item in a | ||||||
19 | retailer's stock in
trade purchased from the retailer in the | ||||||
20 | usual course of such retailer's
business.
| ||||||
21 | (Source: P.A. 97-1129, eff. 8-28-12; 98-446, eff. 8-16-13.)
| ||||||
22 | (35 ILCS 120/5b) (from Ch. 120, par. 444b)
| ||||||
23 | Sec. 5b. State Tax Lien Index. The Department of Revenue | ||||||
24 | shall maintain a State Tax Lien Index of all tax liens filed in | ||||||
25 | the State Tax Lien Registry as provided for by the State Tax |
| |||||||
| |||||||
1 | Lien Registration Act. The recorder of each county shall | ||||||
2 | procure a file labeled
"State Tax Lien Notices" and an index | ||||||
3 | book labeled "State Tax Lien Index".
When notice of any lien or | ||||||
4 | jeopardy assessment lien is presented to him for
filing, he | ||||||
5 | shall file it in numerical order in the file and shall enter it
| ||||||
6 | alphabetically in the index. The entry shall show the name and | ||||||
7 | last known
business address of the person named in the notice, | ||||||
8 | the serial number of
the notice, the date and hour of filing, | ||||||
9 | whether it is a regular lien or a
jeopardy assessment lien, and | ||||||
10 | the amount of tax and penalty due and unpaid,
plus the amount | ||||||
11 | of interest due under Section 5 of this Act at the time
when | ||||||
12 | the notice of lien or jeopardy assessment lien is filed.
| ||||||
13 | No recorder or registrar of titles of any county shall | ||||||
14 | require that the
Department pay any costs or fees in connection | ||||||
15 | with recordation of any
notice or other document filed by the | ||||||
16 | Department under this Act at the time
such notice or other | ||||||
17 | document is presented for recordation. The recorder or
| ||||||
18 | registrar of each county, in order to receive payment for fees | ||||||
19 | or costs
incurred by the Department, shall present the | ||||||
20 | Department with monthly
statements indicating the amount of | ||||||
21 | fees and costs incurred by the
Department and for which no | ||||||
22 | payment has been received.
| ||||||
23 | A notice of lien may be filed after the issuance of a | ||||||
24 | revised final
assessment pursuant to a rehearing or | ||||||
25 | departmental review under Section 4
or Section 5 of this Act.
| ||||||
26 | When the lien obtained pursuant to this Act has been |
| |||||||
| |||||||
1 | satisfied
and the taxpayer has paid the Department in cash or | ||||||
2 | by guaranteed remittance
an amount representing the filing fee | ||||||
3 | for the lien and the filing fee for the
release of that lien,
| ||||||
4 | the Department shall issue a release
of lien and file that | ||||||
5 | release of lien in the State Tax Lien Registry with the | ||||||
6 | recorder of the county where
that lien was filed . The release | ||||||
7 | of lien shall contain in legible letters a
statement as
| ||||||
8 | follows:
| ||||||
9 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
10 | BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||||||
11 | OR THE REGISTRAR
| ||||||
12 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||||||
13 | When a certificate of complete or partial release of lien | ||||||
14 | issued by the
Department is filed in the State Tax Lien | ||||||
15 | Registry, the Department of Revenue presented for filing in the | ||||||
16 | office of the recorder
or Registrar of Titles where a notice of | ||||||
17 | lien or notice of jeopardy
assessment lien was filed, the | ||||||
18 | recorder, in the case of nonregistered
property, shall | ||||||
19 | permanently attach the certificate of release to the notice
of | ||||||
20 | lien or notice of jeopardy assessment lien and shall enter the
| ||||||
21 | certificate of release and the date in the "State Tax Lien | ||||||
22 | Index" on the
line where the notice of lien or notice of | ||||||
23 | jeopardy assessment lien is
entered.
| ||||||
24 | In the case of registered property, the Registrar of Titles | ||||||
25 | shall file
and enter upon each folium of the register of titles | ||||||
26 | affected thereby a
memorial of the certificate of release which |
| |||||||
| |||||||
1 | memorial when so entered shall
act as a release pro tanto of | ||||||
2 | any memorial of such notice of lien or notice
of jeopardy | ||||||
3 | assessment lien previously filed and registered.
| ||||||
4 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
5 | (35 ILCS 120/5c) (from Ch. 120, par. 444c)
| ||||||
6 | Sec. 5c.
Upon payment by the taxpayer to the Department in | ||||||
7 | cash or by guaranteed
remittance of an amount representing the | ||||||
8 | filing fee for the lien and the filing
fee for the release of | ||||||
9 | that lien,
the Department shall issue a certificate of complete | ||||||
10 | or partial
release of the lien
and file that complete or | ||||||
11 | partial release of lien in the State Tax Lien Registry with the | ||||||
12 | recorder of the
county where the lien was filed :
| ||||||
13 | (a) to the extent that the fair market value of any | ||||||
14 | property subject to
the lien exceeds the amount of the lien | ||||||
15 | plus the amount of all prior liens
upon such property;
| ||||||
16 | (b) to the extent that such lien shall become | ||||||
17 | unenforceable;
| ||||||
18 | (c) to the extent that the amount of such lien is paid | ||||||
19 | by the retailer
whose property is subject to such lien, | ||||||
20 | together with any interest which
may become due under | ||||||
21 | Section 5 of this Act between the date when the notice
of | ||||||
22 | lien is filed and the date when the amount of such lien is | ||||||
23 | paid;
| ||||||
24 | (d) to the extent that there is furnished to the | ||||||
25 | Department on a form to
be approved and with a surety or |
| |||||||
| |||||||
1 | sureties satisfactory to the Department a
bond that is | ||||||
2 | conditioned upon the payment of the amount of such lien,
| ||||||
3 | together with any interest which may become due under | ||||||
4 | Section 5 of this
Act after the notice of lien is filed, | ||||||
5 | but before the amount thereof is
fully paid;
| ||||||
6 | (e) to the extent and under the circumstances specified | ||||||
7 | in Section 5a of
this Act in the case of jeopardy | ||||||
8 | assessment liens;
| ||||||
9 | (f) to the extent to which an assessment is reduced | ||||||
10 | pursuant to a
rehearing or departmental review under | ||||||
11 | Section 4 or Section 5 of this
Act.
| ||||||
12 | A certificate of complete or partial release of any lien | ||||||
13 | shall be held
conclusive that the lien upon the property | ||||||
14 | covered by the certificate is
extinguished to the extent | ||||||
15 | indicated by such certificate.
| ||||||
16 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
17 | Section 25-15. The Cannabis and Controlled Substances Tax | ||||||
18 | Act is amended by changing Sections 16, 17, and 19 as follows:
| ||||||
19 | (35 ILCS 520/16) (from Ch. 120, par. 2166)
| ||||||
20 | Sec. 16. All assessments are Jeopardy Assessments - lien.
| ||||||
21 | (a) Assessment. An assessment for a dealer not possessing | ||||||
22 | valid stamps
or other official indicia showing that the tax has | ||||||
23 | been paid shall be
considered a jeopardy assessment or | ||||||
24 | collection, as provided by Section 1102
of the Illinois Income |
| |||||||
| |||||||
1 | Tax Act. The Department shall determine and assess
a tax and | ||||||
2 | applicable penalties and interest according to the best | ||||||
3 | judgment
and information available to the Department, which | ||||||
4 | amount so fixed by the
Department shall be prima facie correct | ||||||
5 | and shall be prima facie evidence
of the correctness of the | ||||||
6 | amount of tax due, as shown in such determination.
When, | ||||||
7 | according to the best judgment and information available to the
| ||||||
8 | Department with regard to all real and personal property and | ||||||
9 | rights to property
of the dealer, there is no reasonable | ||||||
10 | expectation of collection of the amount
of tax and penalty to | ||||||
11 | be assessed, the Department may issue an assessment under
this | ||||||
12 | Section for the amount of tax without penalty.
| ||||||
13 | (b) Filing of Lien. Upon issuance of a jeopardy assessment | ||||||
14 | as
provided by subsection (a) of this Section, the Department | ||||||
15 | may file a
notice of jeopardy assessment lien in the State Tax | ||||||
16 | Lien Registry office of the recorder of the
county in which any | ||||||
17 | property of the taxpayer may be located and shall
notify the | ||||||
18 | taxpayer of such filing.
| ||||||
19 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
20 | some or all
of the amount for which the jeopardy assessment | ||||||
21 | lien against him has been
filed, he may protest within 20 days | ||||||
22 | after being notified by the
Department of the filing of such | ||||||
23 | jeopardy assessment lien and request a
hearing, whereupon the | ||||||
24 | Department shall hold a hearing in conformity with
the | ||||||
25 | provisions of Section 908 of the Illinois Income Tax Act and, | ||||||
26 | pursuant
thereto, shall notify the taxpayer of its decision as |
| |||||||
| |||||||
1 | to whether or not such
jeopardy assessment lien will be | ||||||
2 | released.
| ||||||
3 | After the expiration of the period within which the person | ||||||
4 | assessed may
file an action for judicial review
without such | ||||||
5 | action being filed, a certified copy of the final assessment
or | ||||||
6 | revised final assessment of the Department may be filed with | ||||||
7 | the Circuit
Court of the county in which the dealer resides, or | ||||||
8 | of Cook County in the
case of a dealer who does not reside in | ||||||
9 | this State, or in the county where
the violation of this Act | ||||||
10 | took place.
The certified copy of the final assessment or | ||||||
11 | revised final assessment
shall be accompanied by a | ||||||
12 | certification which recites facts that are
sufficient to show | ||||||
13 | that the Department complied with the jurisdictional
| ||||||
14 | requirements of the Act in arriving at its final assessment or | ||||||
15 | its revised
final assessment and that the dealer had this | ||||||
16 | opportunity for an
administrative hearing and for judicial | ||||||
17 | review, whether he availed himself
or herself of either or both | ||||||
18 | of these opportunities or not. If the court
is satisfied that | ||||||
19 | the Department complied with the
jurisdictional requirements | ||||||
20 | of the Act in arriving at its final assessment or
its revised | ||||||
21 | final assessment and that the taxpayer had his opportunity for
| ||||||
22 | an administrative hearing and for judicial review, whether he | ||||||
23 | availed
himself of either or both of these opportunities or | ||||||
24 | not, the court shall
render judgment in favor of the Department | ||||||
25 | and against the taxpayer for
the amount shown to be due by the | ||||||
26 | final assessment or the revised final
assessment, plus any |
| |||||||
| |||||||
1 | interest which may be due, and such judgment shall be
entered | ||||||
2 | in the judgment docket of the court. Such judgment shall bear | ||||||
3 | the
same rate of interest and shall have the same effect as | ||||||
4 | other judgments.
The judgment may be enforced, and all laws | ||||||
5 | applicable to sales for the
enforcement of a judgment shall be | ||||||
6 | applicable to sales made under such
judgments. The Department | ||||||
7 | shall file the certified copy of its assessment,
as herein | ||||||
8 | provided, with the Circuit Court within 2 years after such
| ||||||
9 | assessment becomes final except when the taxpayer consents in | ||||||
10 | writing to an
extension of such filing period, and except that | ||||||
11 | the time limitation period
on the Department's right to file | ||||||
12 | the certified copy of its assessment with
the Circuit Court | ||||||
13 | shall not run during any period of time in which the
order of | ||||||
14 | any court has the effect of enjoining or restraining the
| ||||||
15 | Department from filing such certified copy of its assessment | ||||||
16 | with the
Circuit Court.
| ||||||
17 | If, when the cause of action for a proceeding in court | ||||||
18 | accrues against a
person, he or she is out of the State, the | ||||||
19 | action may be commenced within
the times herein limited, after | ||||||
20 | his or her coming into or returning to the
State; and if, after | ||||||
21 | the cause of action accrues, he or she departs from
and remains | ||||||
22 | out of the State, the time of his or her absence from the
| ||||||
23 | State, the time of his or her absence is no part of the time | ||||||
24 | limited for
the commencement of the action; but the foregoing | ||||||
25 | provisions concerning
absence from the State shall not apply to | ||||||
26 | any case in which, at the time
the cause of action accrues, the |
| |||||||
| |||||||
1 | party against whom the cause of action
accrues is not a | ||||||
2 | resident of this State. The time within which a court
action is | ||||||
3 | to be commenced by the Department hereunder shall
not run from | ||||||
4 | the
date the taxpayer files a petition in bankruptcy under the | ||||||
5 | Federal
Bankruptcy Act until 30 days after notice of | ||||||
6 | termination or expiration of
the automatic stay imposed by the | ||||||
7 | Federal Bankruptcy Act.
| ||||||
8 | No claim shall be filed against the estate of any deceased | ||||||
9 | person or any
person under legal disability for any tax or | ||||||
10 | penalty or part of either, or
interest, except in the manner | ||||||
11 | prescribed and within the time limited by the
Probate Act of | ||||||
12 | 1975, as amended.
| ||||||
13 | The collection of tax or penalty or interest by any means | ||||||
14 | provided for
herein shall not be a bar to any prosecution under | ||||||
15 | this Act.
| ||||||
16 | In addition to any penalty provided for in this Act, any | ||||||
17 | amount of tax
which is not paid when due shall bear interest at | ||||||
18 | the rate determined in
accordance with the Uniform Penalty and | ||||||
19 | Interest Act, per month or fraction
thereof from the date when | ||||||
20 | such tax becomes past due until such tax is paid
or a judgment | ||||||
21 | therefor is obtained by the Department. If the time for
making | ||||||
22 | or completing an audit of a taxpayer's books and records is | ||||||
23 | extended
with the taxpayer's consent, at the request of and for | ||||||
24 | the convenience of
the Department, beyond the date on which the | ||||||
25 | statute of limitations upon
the issuance of a notice of tax | ||||||
26 | liability by the Department otherwise run,
no interest shall |
| |||||||
| |||||||
1 | accrue during the period of such extension. Interest
shall be | ||||||
2 | collected in the same manner and as part of the tax.
| ||||||
3 | If the Department determines that an amount of tax or | ||||||
4 | penalty or interest
was incorrectly assessed, whether as the | ||||||
5 | result of a mistake of fact or an
error of law, the Department | ||||||
6 | shall waive the amount of tax or penalty or
interest that | ||||||
7 | accrued due to the incorrect assessment.
| ||||||
8 | (Source: P.A. 97-1129, eff. 8-28-12.)
| ||||||
9 | (35 ILCS 520/17) (from Ch. 120, par. 2167)
| ||||||
10 | Sec. 17. Filing and Priority of Liens. (a) Filing in the | ||||||
11 | State Tax Lien Registry with Recorder . Nothing in this Act | ||||||
12 | shall be construed
to give the Department a preference over the | ||||||
13 | rights of any bona fide
purchaser, holder of a security | ||||||
14 | interest, mechanics lienholder,
mortgagee, or judgment lien | ||||||
15 | creditor arising prior
to the filing of a regular notice of | ||||||
16 | lien or a notice of jeopardy
assessment lien in the State Tax | ||||||
17 | Lien Registry office of the recorder in the county in
which the | ||||||
18 | property subject to the lien is located . For purposes of this
| ||||||
19 | section, the term "bona fide," shall not include any mortgage | ||||||
20 | of real or
personal property or any other credit transaction | ||||||
21 | that results in the
mortgagee or the holder of the security | ||||||
22 | acting as trustee for unsecured
creditors of the taxpayer | ||||||
23 | mentioned in the notice of lien who executed such
chattel or | ||||||
24 | real property mortgage or the document evidencing such credit
| ||||||
25 | transaction. Such lien shall be inferior to the lien of general |
| |||||||
| |||||||
1 | taxes,
special assessments and special taxes heretofore or | ||||||
2 | hereafter levied by any
political subdivision of this State.
| ||||||
3 | (b) Filing with Registrar. In case title to land to be | ||||||
4 | affected by
the notice of lien or notice of jeopardy assessment | ||||||
5 | lien is registered
under the provisions of "An Act concerning | ||||||
6 | land titles," approved May 1,
1897, as amended, such notice | ||||||
7 | shall also be filed in the State Tax Lien Registry office of | ||||||
8 | the
Registrar of Titles of the county within which the property | ||||||
9 | subject to the
lien is situated and shall be entered upon the | ||||||
10 | register of titles as a
memorial of charge upon each folium of | ||||||
11 | the register of titles affected by
such notice , and the | ||||||
12 | Department shall not have a preference over the rights
of any | ||||||
13 | bona fide purchaser, mortgagee, judgment creditor or other lien
| ||||||
14 | holder arising prior to the registration of such notice.
| ||||||
15 | (c) (Blank). No recorder or registrar of titles of any | ||||||
16 | county shall require
that the Department pay any costs or fees | ||||||
17 | in connection with recordation of
any notice or other document | ||||||
18 | filed by the Department under this Act at the
time such notice | ||||||
19 | or other document is presented for recordation.
| ||||||
20 | (Source: P.A. 86-905.)
| ||||||
21 | (35 ILCS 520/19) (from Ch. 120, par. 2169)
| ||||||
22 | Sec. 19. Release of Liens.
| ||||||
23 | (a) In general. The Department shall release all or any | ||||||
24 | portion of
the property subject to any lien provided for in | ||||||
25 | this Act if it determines
that the release will not endanger or |
| |||||||
| |||||||
1 | jeopardize the collection of the
amount secured thereby.
The | ||||||
2 | Department shall release its lien on property which is the | ||||||
3 | subject of
forfeiture proceedings under the Narcotics Profit | ||||||
4 | Forfeiture Act, the Criminal
Code of 2012, or the Drug Asset | ||||||
5 | Forfeiture Procedure Act until all forfeiture
proceedings are | ||||||
6 | concluded. Property forfeited shall not be subject to
a lien | ||||||
7 | under this Act.
| ||||||
8 | (b) Judicial determination. If on judicial review the final | ||||||
9 | judgment
of the court is that the taxpayer does not owe some or | ||||||
10 | all of the amount
secured by the lien against him, or that no | ||||||
11 | jeopardy to the revenue exists,
the Department shall release | ||||||
12 | its lien to the extent of such finding of
nonliability, or to | ||||||
13 | the extent of such finding of no jeopardy to the
revenue.
| ||||||
14 | (c) Payment. The Department shall also release its jeopardy
| ||||||
15 | assessment lien against the taxpayer whenever the tax and | ||||||
16 | penalty covered
by such lien, plus any interest which may be | ||||||
17 | due, are paid.
| ||||||
18 | (d) Certificate of release. The Department shall issue a | ||||||
19 | certificate
of complete or partial release of the lien:
| ||||||
20 | (1) To the extent that the fair market value of any | ||||||
21 | property subject to
the lien exceeds the amount of the lien | ||||||
22 | plus the amount of all prior liens
upon such property;
| ||||||
23 | (2) To the extent that such lien shall become | ||||||
24 | unenforceable;
| ||||||
25 | (3) To the extent that the amount of such lien is paid | ||||||
26 | by the person
whose property is subject to such lien, |
| |||||||
| |||||||
1 | together with any interest and penalty
which
may become due | ||||||
2 | under this Act between the date when the notice of lien is
| ||||||
3 | filed and the date when the amount of such lien is paid;
| ||||||
4 | (4) To the extent and under the circumstances specified | ||||||
5 | in this Section.
A certificate of complete or partial | ||||||
6 | release of any lien shall be held
conclusive that the lien | ||||||
7 | upon the property covered by the certificate is
| ||||||
8 | extinguished to the extent indicated by such certificate.
| ||||||
9 | Such release of lien shall be issued to the person, or his | ||||||
10 | agent, against
whom the lien was obtained and shall contain in | ||||||
11 | legible letters a statement as
follows:
| ||||||
12 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
13 | BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||||||
14 | OR THE REGISTRAR
| ||||||
15 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||||||
16 | (e) Filing. When a certificate of complete or partial | ||||||
17 | release of lien
issued by the Department is filed in the State | ||||||
18 | Tax Lien Registry, the Department presented for filing in the | ||||||
19 | office of the
recorder or Registrar of Titles where a notice of | ||||||
20 | lien or notice
of jeopardy assessment lien was filed:
| ||||||
21 | (1) The recorder, in the case of nonregistered | ||||||
22 | property, shall
permanently attach the certificate of | ||||||
23 | release to the notice of lien or
notice of jeopardy | ||||||
24 | assessment lien and shall enter the certificate of
release | ||||||
25 | and the date in the "State Tax Lien Index" on the line | ||||||
26 | where the
notice of lien or notice of jeopardy assessment |
| |||||||
| |||||||
1 | lien is entered . ; and
| ||||||
2 | (2) In the case of registered property, the Registrar | ||||||
3 | of Titles shall
file and enter upon each folium of the | ||||||
4 | register of titles affected thereby
a memorial of the | ||||||
5 | certificate of release which memorial when so entered
shall | ||||||
6 | act as a release pro tanto of any memorial of such notice | ||||||
7 | of lien or
notice of jeopardy assessment lien previously | ||||||
8 | filed and registered.
| ||||||
9 | (Source: P.A. 97-1150, eff. 1-25-13 .)
| ||||||
10 | Section 25-20. The Illinois Municipal Code is amended by | ||||||
11 | changing Section 8-3-15 as follows:
| ||||||
12 | (65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)
| ||||||
13 | Sec. 8-3-15.
The corporate authorities of each | ||||||
14 | municipality shall have
all powers necessary to enforce the | ||||||
15 | collection of any tax imposed and collected
by such | ||||||
16 | municipality, whether such tax was imposed pursuant to its home
| ||||||
17 | rule powers or statutory authorization, including but not | ||||||
18 | limited to subpoena
power and the power to create and enforce | ||||||
19 | liens. No such lien shall affect
the rights of bona fide | ||||||
20 | purchasers, mortgagees, judgment creditors or other
| ||||||
21 | lienholders who acquire their interests in such property prior | ||||||
22 | to the time
a notice of such lien is placed on record in the | ||||||
23 | office of the recorder or
the registrar of titles of the county | ||||||
24 | in which the property is located.
However, nothing in this |
| |||||||
| |||||||
1 | Section shall permit a municipality to place a
lien upon | ||||||
2 | property not located or found within its corporate boundaries. | ||||||
3 | A
municipality creating a lien may provide that the procedures | ||||||
4 | for its notice
and enforcement shall be the same as that | ||||||
5 | provided in the Retailers'
Occupation Tax Act, as that Act | ||||||
6 | existed prior to the adoption of the State Tax Lien | ||||||
7 | Registration Act now or hereafter amended , for State tax liens, | ||||||
8 | and
any recorder or registrar of titles with whom a notice of | ||||||
9 | such lien is
filed shall treat such lien as a State tax lien | ||||||
10 | for recording purposes.
| ||||||
11 | (Source: P.A. 86-680.)
| ||||||
12 | Section 25-25. The Title Insurance Act is amended by | ||||||
13 | changing Section 22 as follows:
| ||||||
14 | (215 ILCS 155/22) (from Ch. 73, par. 1422)
| ||||||
15 | Sec. 22. Tax indemnity; notice.
A corporation authorized to | ||||||
16 | do business under this Act
shall notify the Director of Revenue | ||||||
17 | of the State
of Illinois, by notice directed to his office in | ||||||
18 | the City of Chicago, of
each trust account or similar account | ||||||
19 | established which relates to title
exceptions due to a judgment | ||||||
20 | lien or any other lien arising
under any tax Act administered | ||||||
21 | by the Illinois Department of Revenue, when
notice of such lien | ||||||
22 | has been filed with the registrar of titles or
recorder or in | ||||||
23 | the State Tax Lien Registry , as the case may be, in the manner | ||||||
24 | prescribed by law.
Such notice shall contain the name, address, |
| |||||||
| |||||||
1 | and tax
identification number of the debtor, the permanent real
| ||||||
2 | estate index numbers, if any, and the address and
legal | ||||||
3 | description of the property, the type of lien claimed by the
| ||||||
4 | Department and identification of any trust fund or similar | ||||||
5 | account held by
such corporation or any agent thereof relating | ||||||
6 | to such lien. Any trust
fund or similar account established by | ||||||
7 | such corporation or agent relating
to any such lien shall | ||||||
8 | include provisions requiring such corporation or
agent to apply | ||||||
9 | such fund in satisfaction or release of such lien upon
written | ||||||
10 | demand therefor by the Department of Revenue.
| ||||||
11 | (Source: P.A. 94-893, eff. 6-20-06.)
| ||||||
12 | ARTICLE 30. GASOHOL; ETHANOL FUEL | ||||||
13 | Section 30-5. The Use Tax Act is amended by changing | ||||||
14 | Section 3-10 as follows:
| ||||||
15 | (35 ILCS 105/3-10)
| ||||||
16 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
17 | Section, the tax
imposed by this Act is at the rate of 6.25% of | ||||||
18 | either the selling price or the
fair market value, if any, of | ||||||
19 | the tangible personal property. In all cases
where property | ||||||
20 | functionally used or consumed is the same as the property that
| ||||||
21 | was purchased at retail, then the tax is imposed on the selling | ||||||
22 | price of the
property. In all cases where property functionally | ||||||
23 | used or consumed is a
by-product or waste product that has been |
| |||||||
| |||||||
1 | refined, manufactured, or produced
from property purchased at | ||||||
2 | retail, then the tax is imposed on the lower of the
fair market | ||||||
3 | value, if any, of the specific property so used in this State | ||||||
4 | or on
the selling price of the property purchased at retail. | ||||||
5 | For purposes of this
Section "fair market value" means the | ||||||
6 | price at which property would change
hands between a willing | ||||||
7 | buyer and a willing seller, neither being under any
compulsion | ||||||
8 | to buy or sell and both having reasonable knowledge of the
| ||||||
9 | relevant facts. The fair market value shall be established by | ||||||
10 | Illinois sales by
the taxpayer of the same property as that | ||||||
11 | functionally used or consumed, or if
there are no such sales by | ||||||
12 | the taxpayer, then comparable sales or purchases of
property of | ||||||
13 | like kind and character in Illinois.
| ||||||
14 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
15 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
16 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
17 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
18 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
19 | respect to sales tax holiday items as defined in Section 3-6 of | ||||||
20 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
21 | With respect to gasohol, the tax imposed by this Act | ||||||
22 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
23 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||||||
24 | proceeds of sales made
on or after July 1, 2003 and on or | ||||||
25 | before July 1, 2017 December 31, 2018 , and (iii) 100% of the | ||||||
26 | proceeds of sales made
thereafter.
If, at any time, however, |
| |||||||
| |||||||
1 | the tax under this Act on sales of gasohol is
imposed at the
| ||||||
2 | rate of 1.25%, then the tax imposed by this Act applies to 100% | ||||||
3 | of the proceeds
of sales of gasohol made during that time.
| ||||||
4 | With respect to majority blended ethanol fuel, the tax | ||||||
5 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
6 | made on or after July 1, 2003 and on or before
December 31, | ||||||
7 | 2023 December
31, 2018 but applies to 100% of the proceeds of | ||||||
8 | sales made thereafter.
| ||||||
9 | With respect to biodiesel blends with no less than 1% and | ||||||
10 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
11 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
12 | 2003 and on or before December 31, 2018
and (ii) 100% of the | ||||||
13 | proceeds of sales made
thereafter.
If, at any time, however, | ||||||
14 | the tax under this Act on sales of biodiesel blends
with no | ||||||
15 | less than 1% and no more than 10% biodiesel
is imposed at the | ||||||
16 | rate of
1.25%, then the
tax imposed by this Act applies to 100% | ||||||
17 | of the proceeds of sales of biodiesel
blends with no less than | ||||||
18 | 1% and no more than 10% biodiesel
made
during that time.
| ||||||
19 | With respect to 100% biodiesel and biodiesel blends with | ||||||
20 | more than 10%
but no more than 99% biodiesel, the tax imposed | ||||||
21 | by this Act does not apply to
the
proceeds of sales made on or | ||||||
22 | after July 1, 2003 and on or before
December 31, 2023 December | ||||||
23 | 31, 2018 but applies to 100% of the proceeds of sales made
| ||||||
24 | thereafter.
| ||||||
25 | With respect to food for human consumption that is to be | ||||||
26 | consumed off the
premises where it is sold (other than |
| |||||||
| |||||||
1 | alcoholic beverages, soft drinks, and
food that has been | ||||||
2 | prepared for immediate consumption) and prescription and
| ||||||
3 | nonprescription medicines, drugs, medical appliances, products | ||||||
4 | classified as Class III medical devices by the United States | ||||||
5 | Food and Drug Administration that are used for cancer treatment | ||||||
6 | pursuant to a prescription, as well as any accessories and | ||||||
7 | components related to those devices, modifications to a motor
| ||||||
8 | vehicle for the purpose of rendering it usable by a person with | ||||||
9 | a disability, and
insulin, urine testing materials, syringes, | ||||||
10 | and needles used by diabetics, for
human use, the tax is | ||||||
11 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
12 | until September 1, 2009: the term "soft drinks" means any | ||||||
13 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
14 | carbonated or not, including but not limited to
soda water, | ||||||
15 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
16 | other
preparations commonly known as soft drinks of whatever | ||||||
17 | kind or description that
are contained in any closed or sealed | ||||||
18 | bottle, can, carton, or container,
regardless of size; but | ||||||
19 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
20 | water, infant formula, milk or milk products as defined in the | ||||||
21 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
22 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
23 | Notwithstanding any other provisions of this
Act, | ||||||
24 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
25 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
26 | drinks" do not include beverages that contain milk or milk |
| |||||||
| |||||||
1 | products, soy, rice or similar milk substitutes, or greater | ||||||
2 | than 50% of vegetable or fruit juice by volume. | ||||||
3 | Until August 1, 2009, and notwithstanding any other | ||||||
4 | provisions of this
Act, "food for human consumption that is to | ||||||
5 | be consumed off the premises where
it is sold" includes all | ||||||
6 | food sold through a vending machine, except soft
drinks and | ||||||
7 | food products that are dispensed hot from a vending machine,
| ||||||
8 | regardless of the location of the vending machine. Beginning | ||||||
9 | August 1, 2009, and notwithstanding any other provisions of | ||||||
10 | this Act, "food for human consumption that is to be consumed | ||||||
11 | off the premises where it is sold" includes all food sold | ||||||
12 | through a vending machine, except soft drinks, candy, and food | ||||||
13 | products that are dispensed hot from a vending machine, | ||||||
14 | regardless of the location of the vending machine.
| ||||||
15 | Notwithstanding any other provisions of this
Act, | ||||||
16 | beginning September 1, 2009, "food for human consumption that | ||||||
17 | is to be consumed off the premises where
it is sold" does not | ||||||
18 | include candy. For purposes of this Section, "candy" means a | ||||||
19 | preparation of sugar, honey, or other natural or artificial | ||||||
20 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
21 | ingredients or flavorings in the form of bars, drops, or | ||||||
22 | pieces. "Candy" does not include any preparation that contains | ||||||
23 | flour or requires refrigeration. | ||||||
24 | Notwithstanding any other provisions of this
Act, | ||||||
25 | beginning September 1, 2009, "nonprescription medicines and | ||||||
26 | drugs" does not include grooming and hygiene products. For |
| |||||||
| |||||||
1 | purposes of this Section, "grooming and hygiene products" | ||||||
2 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
3 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
4 | lotions and screens, unless those products are available by | ||||||
5 | prescription only, regardless of whether the products meet the | ||||||
6 | definition of "over-the-counter-drugs". For the purposes of | ||||||
7 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
8 | use that contains a label that identifies the product as a drug | ||||||
9 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
10 | label includes: | ||||||
11 | (A) A "Drug Facts" panel; or | ||||||
12 | (B) A statement of the "active ingredient(s)" with a | ||||||
13 | list of those ingredients contained in the compound, | ||||||
14 | substance or preparation. | ||||||
15 | Beginning on the effective date of this amendatory Act of | ||||||
16 | the 98th General Assembly, "prescription and nonprescription | ||||||
17 | medicines and drugs" includes medical cannabis purchased from a | ||||||
18 | registered dispensing organization under the Compassionate Use | ||||||
19 | of Medical Cannabis Pilot Program Act. | ||||||
20 | If the property that is purchased at retail from a retailer | ||||||
21 | is acquired
outside Illinois and used outside Illinois before | ||||||
22 | being brought to Illinois
for use here and is taxable under | ||||||
23 | this Act, the "selling price" on which
the tax is computed | ||||||
24 | shall be reduced by an amount that represents a
reasonable | ||||||
25 | allowance for depreciation for the period of prior out-of-state | ||||||
26 | use.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||||||
2 | 99-858, eff. 8-19-16.)
| ||||||
3 | Section 30-10. The Service Use Tax Act is amended by | ||||||
4 | changing Section 3-10 as follows:
| ||||||
5 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
6 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
7 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
8 | the selling
price of tangible personal property transferred as | ||||||
9 | an incident to the sale
of service, but, for the purpose of | ||||||
10 | computing this tax, in no event shall
the selling price be less | ||||||
11 | than the cost price of the property to the
serviceman.
| ||||||
12 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
13 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
14 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
15 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
16 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
17 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
18 | of property transferred
as an incident to the sale of service | ||||||
19 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
20 | of the selling price of
property transferred as an incident to | ||||||
21 | the sale of service on or after July
1, 2003 and on or before | ||||||
22 | July 1, 2017 December 31, 2018 , and (iii)
100% of the selling | ||||||
23 | price thereafter.
If, at any time, however, the tax under this | ||||||
24 | Act on sales of gasohol, as
defined in
the Use Tax Act, is |
| |||||||
| |||||||
1 | imposed at the rate of 1.25%, then the
tax imposed by this Act | ||||||
2 | applies to 100% of the proceeds of sales of gasohol
made during | ||||||
3 | that time.
| ||||||
4 | With respect to majority blended ethanol fuel, as defined | ||||||
5 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
6 | to the selling price of property transferred
as an incident to | ||||||
7 | the sale of service on or after July 1, 2003 and on or before
| ||||||
8 | December 31, 2023 December 31, 2018 but applies to 100% of the | ||||||
9 | selling price thereafter.
| ||||||
10 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
11 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
12 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
13 | of property transferred as an incident
to the sale of service | ||||||
14 | on or after July 1, 2003 and on or before December 31, 2018
and | ||||||
15 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
16 | at any time, however, the tax under this Act on sales of | ||||||
17 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
18 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
19 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
20 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
21 | and no more than 10% biodiesel
made
during that time.
| ||||||
22 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
23 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
24 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
25 | by this Act
does not apply to the proceeds of the selling price | ||||||
26 | of property transferred
as an incident to the sale of service |
| |||||||
| |||||||
1 | on or after July 1, 2003 and on or before
December 31, 2023 | ||||||
2 | December 31, 2018 but applies to 100% of the selling price | ||||||
3 | thereafter.
| ||||||
4 | At the election of any registered serviceman made for each | ||||||
5 | fiscal year,
sales of service in which the aggregate annual | ||||||
6 | cost price of tangible
personal property transferred as an | ||||||
7 | incident to the sales of service is
less than 35%, or 75% in | ||||||
8 | the case of servicemen transferring prescription
drugs or | ||||||
9 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
10 | annual total gross receipts from all sales of service, the tax | ||||||
11 | imposed by
this Act shall be based on the serviceman's cost | ||||||
12 | price of the tangible
personal property transferred as an | ||||||
13 | incident to the sale of those services.
| ||||||
14 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
15 | for
immediate consumption and transferred incident to a sale of | ||||||
16 | service subject
to this Act or the Service Occupation Tax Act | ||||||
17 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
18 | Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | ||||||
19 | Act, the Specialized Mental Health Rehabilitation Act of 2013, | ||||||
20 | or the
Child Care
Act of 1969. The tax shall
also be imposed at | ||||||
21 | the rate of 1% on food for human consumption that is to be
| ||||||
22 | consumed off the premises where it is sold (other than | ||||||
23 | alcoholic beverages,
soft drinks, and food that has been | ||||||
24 | prepared for immediate consumption and is
not otherwise | ||||||
25 | included in this paragraph) and prescription and | ||||||
26 | nonprescription
medicines, drugs, medical appliances, products |
| |||||||
| |||||||
1 | classified as Class III medical devices by the United States | ||||||
2 | Food and Drug Administration that are used for cancer treatment | ||||||
3 | pursuant to a prescription, as well as any accessories and | ||||||
4 | components related to those devices, modifications to a motor | ||||||
5 | vehicle for the
purpose of rendering it usable by a person with | ||||||
6 | a disability, and insulin, urine testing
materials,
syringes, | ||||||
7 | and needles used by diabetics, for
human use. For the purposes | ||||||
8 | of this Section, until September 1, 2009: the term "soft | ||||||
9 | drinks" means any
complete, finished, ready-to-use, | ||||||
10 | non-alcoholic drink, whether carbonated or
not, including but | ||||||
11 | not limited to soda water, cola, fruit juice, vegetable
juice, | ||||||
12 | carbonated water, and all other preparations commonly known as | ||||||
13 | soft
drinks of whatever kind or description that are contained | ||||||
14 | in any closed or
sealed bottle, can, carton, or container, | ||||||
15 | regardless of size; but "soft drinks"
does not include coffee, | ||||||
16 | tea, non-carbonated water, infant formula, milk or
milk | ||||||
17 | products as defined in the Grade A Pasteurized Milk and Milk | ||||||
18 | Products Act,
or drinks containing 50% or more natural fruit or | ||||||
19 | vegetable juice.
| ||||||
20 | Notwithstanding any other provisions of this
Act, | ||||||
21 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
22 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
23 | drinks" do not include beverages that contain milk or milk | ||||||
24 | products, soy, rice or similar milk substitutes, or greater | ||||||
25 | than 50% of vegetable or fruit juice by volume. | ||||||
26 | Until August 1, 2009, and notwithstanding any other |
| |||||||
| |||||||
1 | provisions of this Act, "food for human
consumption that is to | ||||||
2 | be consumed off the premises where it is sold" includes
all | ||||||
3 | food sold through a vending machine, except soft drinks and | ||||||
4 | food products
that are dispensed hot from a vending machine, | ||||||
5 | regardless of the location of
the vending machine. Beginning | ||||||
6 | August 1, 2009, and notwithstanding any other provisions of | ||||||
7 | this Act, "food for human consumption that is to be consumed | ||||||
8 | off the premises where it is sold" includes all food sold | ||||||
9 | through a vending machine, except soft drinks, candy, and food | ||||||
10 | products that are dispensed hot from a vending machine, | ||||||
11 | regardless of the location of the vending machine.
| ||||||
12 | Notwithstanding any other provisions of this
Act, | ||||||
13 | beginning September 1, 2009, "food for human consumption that | ||||||
14 | is to be consumed off the premises where
it is sold" does not | ||||||
15 | include candy. For purposes of this Section, "candy" means a | ||||||
16 | preparation of sugar, honey, or other natural or artificial | ||||||
17 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
18 | ingredients or flavorings in the form of bars, drops, or | ||||||
19 | pieces. "Candy" does not include any preparation that contains | ||||||
20 | flour or requires refrigeration. | ||||||
21 | Notwithstanding any other provisions of this
Act, | ||||||
22 | beginning September 1, 2009, "nonprescription medicines and | ||||||
23 | drugs" does not include grooming and hygiene products. For | ||||||
24 | purposes of this Section, "grooming and hygiene products" | ||||||
25 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
26 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| |||||||
| |||||||
1 | lotions and screens, unless those products are available by | ||||||
2 | prescription only, regardless of whether the products meet the | ||||||
3 | definition of "over-the-counter-drugs". For the purposes of | ||||||
4 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
5 | use that contains a label that identifies the product as a drug | ||||||
6 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
7 | label includes: | ||||||
8 | (A) A "Drug Facts" panel; or | ||||||
9 | (B) A statement of the "active ingredient(s)" with a | ||||||
10 | list of those ingredients contained in the compound, | ||||||
11 | substance or preparation. | ||||||
12 | Beginning on January 1, 2014 (the effective date of Public | ||||||
13 | Act 98-122), "prescription and nonprescription medicines and | ||||||
14 | drugs" includes medical cannabis purchased from a registered | ||||||
15 | dispensing organization under the Compassionate Use of Medical | ||||||
16 | Cannabis Pilot Program Act. | ||||||
17 | If the property that is acquired from a serviceman is | ||||||
18 | acquired outside
Illinois and used outside Illinois before | ||||||
19 | being brought to Illinois for use
here and is taxable under | ||||||
20 | this Act, the "selling price" on which the tax
is computed | ||||||
21 | shall be reduced by an amount that represents a reasonable
| ||||||
22 | allowance for depreciation for the period of prior out-of-state | ||||||
23 | use.
| ||||||
24 | (Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; | ||||||
25 | 98-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff. | ||||||
26 | 7-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
|
| |||||||
| |||||||
1 | Section 30-15. The Service Occupation Tax Act is amended by | ||||||
2 | changing Section 3-10 as follows:
| ||||||
3 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||||||
4 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
5 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
6 | the "selling price",
as defined in Section 2 of the Service Use | ||||||
7 | Tax Act, of the tangible
personal property. For the purpose of | ||||||
8 | computing this tax, in no event
shall the "selling price" be | ||||||
9 | less than the cost price to the serviceman of
the tangible | ||||||
10 | personal property transferred. The selling price of each item
| ||||||
11 | of tangible personal property transferred as an incident of a | ||||||
12 | sale of
service may be shown as a distinct and separate item on | ||||||
13 | the serviceman's
billing to the service customer. If the | ||||||
14 | selling price is not so shown, the
selling price of the | ||||||
15 | tangible personal property is deemed to be 50% of the
| ||||||
16 | serviceman's entire billing to the service customer. When, | ||||||
17 | however, a
serviceman contracts to design, develop, and produce | ||||||
18 | special order machinery or
equipment, the tax imposed by this | ||||||
19 | Act shall be based on the serviceman's
cost price of the | ||||||
20 | tangible personal property transferred incident to the
| ||||||
21 | completion of the contract.
| ||||||
22 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
23 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
24 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| |||||||
| |||||||
1 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
2 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
3 | tax imposed
by this Act shall apply to (i) 70% of the cost | ||||||
4 | price of property
transferred as
an incident to the sale of | ||||||
5 | service on or after January 1, 1990, and before
July 1, 2003, | ||||||
6 | (ii) 80% of the selling price of property transferred as an
| ||||||
7 | incident to the sale of service on or after July
1, 2003 and on | ||||||
8 | or before July 1, 2017 December 31, 2018 , and (iii) 100%
of
the | ||||||
9 | cost price
thereafter.
If, at any time, however, the tax under | ||||||
10 | this Act on sales of gasohol, as
defined in
the Use Tax Act, is | ||||||
11 | imposed at the rate of 1.25%, then the
tax imposed by this Act | ||||||
12 | applies to 100% of the proceeds of sales of gasohol
made during | ||||||
13 | that time.
| ||||||
14 | With respect to majority blended ethanol fuel, as defined | ||||||
15 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
16 | to the selling price of property transferred
as an incident to | ||||||
17 | the sale of service on or after July 1, 2003 and on or before
| ||||||
18 | December 31, 2023 December 31, 2018 but applies to 100% of the | ||||||
19 | selling price thereafter.
| ||||||
20 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
21 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
22 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
23 | of property transferred as an incident
to the sale of service | ||||||
24 | on or after July 1, 2003 and on or before December 31, 2018
and | ||||||
25 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
26 | at any time, however, the tax under this Act on sales of |
| |||||||
| |||||||
1 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
2 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
3 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
4 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
5 | and no more than 10% biodiesel
made
during that time.
| ||||||
6 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
7 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
8 | more than 10% but no more than 99% biodiesel material, the tax | ||||||
9 | imposed by this
Act
does not apply to the proceeds of the | ||||||
10 | selling price of property transferred
as an incident to the | ||||||
11 | sale of service on or after July 1, 2003 and on or before
| ||||||
12 | December 31, 2023 December 31, 2018 but applies to 100% of the | ||||||
13 | selling price thereafter.
| ||||||
14 | At the election of any registered serviceman made for each | ||||||
15 | fiscal year,
sales of service in which the aggregate annual | ||||||
16 | cost price of tangible
personal property transferred as an | ||||||
17 | incident to the sales of service is
less than 35%, or 75% in | ||||||
18 | the case of servicemen transferring prescription
drugs or | ||||||
19 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
20 | annual total gross receipts from all sales of service, the tax | ||||||
21 | imposed by
this Act shall be based on the serviceman's cost | ||||||
22 | price of the tangible
personal property transferred incident to | ||||||
23 | the sale of those services.
| ||||||
24 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
25 | for
immediate consumption and transferred incident to a sale of | ||||||
26 | service subject
to this Act or the Service Occupation Tax Act |
| |||||||
| |||||||
1 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
2 | Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | ||||||
3 | Act, the Specialized Mental Health Rehabilitation Act of 2013, | ||||||
4 | or the
Child Care Act of 1969. The tax shall
also be imposed at | ||||||
5 | the rate of 1% on food for human consumption that is
to be | ||||||
6 | consumed off the
premises where it is sold (other than | ||||||
7 | alcoholic beverages, soft drinks, and
food that has been | ||||||
8 | prepared for immediate consumption and is not
otherwise | ||||||
9 | included in this paragraph) and prescription and
| ||||||
10 | nonprescription medicines, drugs, medical appliances, products | ||||||
11 | classified as Class III medical devices by the United States | ||||||
12 | Food and Drug Administration that are used for cancer treatment | ||||||
13 | pursuant to a prescription, as well as any accessories and | ||||||
14 | components related to those devices, modifications to a motor
| ||||||
15 | vehicle for the purpose of rendering it usable by a person with | ||||||
16 | a disability, and
insulin, urine testing materials, syringes, | ||||||
17 | and needles used by diabetics, for
human use. For the purposes | ||||||
18 | of this Section, until September 1, 2009: the term "soft | ||||||
19 | drinks" means any
complete, finished, ready-to-use, | ||||||
20 | non-alcoholic drink, whether carbonated or
not, including but | ||||||
21 | not limited to soda water, cola, fruit juice, vegetable
juice, | ||||||
22 | carbonated water, and all other preparations commonly known as | ||||||
23 | soft
drinks of whatever kind or description that are contained | ||||||
24 | in any closed or
sealed can, carton, or container, regardless | ||||||
25 | of size; but "soft drinks" does not
include coffee, tea, | ||||||
26 | non-carbonated water, infant formula, milk or milk
products as |
| |||||||
| |||||||
1 | defined in the Grade A Pasteurized Milk and Milk Products Act, | ||||||
2 | or
drinks containing 50% or more natural fruit or vegetable | ||||||
3 | juice.
| ||||||
4 | Notwithstanding any other provisions of this
Act, | ||||||
5 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
6 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
7 | drinks" do not include beverages that contain milk or milk | ||||||
8 | products, soy, rice or similar milk substitutes, or greater | ||||||
9 | than 50% of vegetable or fruit juice by volume. | ||||||
10 | Until August 1, 2009, and notwithstanding any other | ||||||
11 | provisions of this Act, "food for human consumption
that is to | ||||||
12 | be consumed off the premises where it is sold" includes all | ||||||
13 | food
sold through a vending machine, except soft drinks and | ||||||
14 | food products that are
dispensed hot from a vending machine, | ||||||
15 | regardless of the location of the vending
machine. Beginning | ||||||
16 | August 1, 2009, and notwithstanding any other provisions of | ||||||
17 | this Act, "food for human consumption that is to be consumed | ||||||
18 | off the premises where it is sold" includes all food sold | ||||||
19 | through a vending machine, except soft drinks, candy, and food | ||||||
20 | products that are dispensed hot from a vending machine, | ||||||
21 | regardless of the location of the vending machine.
| ||||||
22 | Notwithstanding any other provisions of this
Act, | ||||||
23 | beginning September 1, 2009, "food for human consumption that | ||||||
24 | is to be consumed off the premises where
it is sold" does not | ||||||
25 | include candy. For purposes of this Section, "candy" means a | ||||||
26 | preparation of sugar, honey, or other natural or artificial |
| |||||||
| |||||||
1 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
2 | ingredients or flavorings in the form of bars, drops, or | ||||||
3 | pieces. "Candy" does not include any preparation that contains | ||||||
4 | flour or requires refrigeration. | ||||||
5 | Notwithstanding any other provisions of this
Act, | ||||||
6 | beginning September 1, 2009, "nonprescription medicines and | ||||||
7 | drugs" does not include grooming and hygiene products. For | ||||||
8 | purposes of this Section, "grooming and hygiene products" | ||||||
9 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
10 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
11 | lotions and screens, unless those products are available by | ||||||
12 | prescription only, regardless of whether the products meet the | ||||||
13 | definition of "over-the-counter-drugs". For the purposes of | ||||||
14 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
15 | use that contains a label that identifies the product as a drug | ||||||
16 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
17 | label includes: | ||||||
18 | (A) A "Drug Facts" panel; or | ||||||
19 | (B) A statement of the "active ingredient(s)" with a | ||||||
20 | list of those ingredients contained in the compound, | ||||||
21 | substance or preparation. | ||||||
22 | Beginning on January 1, 2014 (the effective date of Public | ||||||
23 | Act 98-122), "prescription and nonprescription medicines and | ||||||
24 | drugs" includes medical cannabis purchased from a registered | ||||||
25 | dispensing organization under the Compassionate Use of Medical | ||||||
26 | Cannabis Pilot Program Act. |
| |||||||
| |||||||
1 | (Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; | ||||||
2 | 98-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff. | ||||||
3 | 7-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
| ||||||
4 | Section 30-20. The Retailers' Occupation Tax Act is amended | ||||||
5 | by changing Section 2-10 as follows:
| ||||||
6 | (35 ILCS 120/2-10)
| ||||||
7 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
8 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
9 | gross receipts
from sales of tangible personal property made in | ||||||
10 | the course of business.
| ||||||
11 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
12 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
13 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
14 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
15 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
16 | respect to sales tax holiday items as defined in Section 2-8 of | ||||||
17 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
18 | Within 14 days after the effective date of this amendatory | ||||||
19 | Act of the 91st
General Assembly, each retailer of motor fuel | ||||||
20 | and gasohol shall cause the
following notice to be posted in a | ||||||
21 | prominently visible place on each retail
dispensing device that | ||||||
22 | is used to dispense motor
fuel or gasohol in the State of | ||||||
23 | Illinois: "As of July 1, 2000, the State of
Illinois has | ||||||
24 | eliminated the State's share of sales tax on motor fuel and
|
| |||||||
| |||||||
1 | gasohol through December 31, 2000. The price on this pump | ||||||
2 | should reflect the
elimination of the tax." The notice shall be | ||||||
3 | printed in bold print on a sign
that is no smaller than 4 | ||||||
4 | inches by 8 inches. The sign shall be clearly
visible to | ||||||
5 | customers. Any retailer who fails to post or maintain a | ||||||
6 | required
sign through December 31, 2000 is guilty of a petty | ||||||
7 | offense for which the fine
shall be $500 per day per each | ||||||
8 | retail premises where a violation occurs.
| ||||||
9 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
10 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
11 | sales made on or after
January 1, 1990, and before July 1, | ||||||
12 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
13 | 1, 2003 and on or before July 1, 2017 December 31,
2018 , and | ||||||
14 | (iii) 100% of the proceeds of sales
made thereafter.
If, at any | ||||||
15 | time, however, the tax under this Act on sales of gasohol, as
| ||||||
16 | defined in
the Use Tax Act, is imposed at the rate of 1.25%, | ||||||
17 | then the
tax imposed by this Act applies to 100% of the | ||||||
18 | proceeds of sales of gasohol
made during that time.
| ||||||
19 | With respect to majority blended ethanol fuel, as defined | ||||||
20 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
21 | to the proceeds of sales made on or after
July 1, 2003 and on or | ||||||
22 | before December 31, 2023 December 31, 2018 but applies to 100% | ||||||
23 | of the
proceeds of sales made thereafter.
| ||||||
24 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
25 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
26 | tax imposed by this Act
applies to (i) 80% of the proceeds of |
| |||||||
| |||||||
1 | sales made on or after July 1, 2003
and on or before December | ||||||
2 | 31, 2018 and (ii) 100% of the
proceeds of sales made | ||||||
3 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
4 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
5 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
6 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
7 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
8 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
9 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
10 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
11 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
12 | by this Act
does not apply to the proceeds of sales made on or | ||||||
13 | after July 1, 2003
and on or before December 31, 2023 December | ||||||
14 | 31, 2018 but applies to 100% of the
proceeds of sales made | ||||||
15 | thereafter.
| ||||||
16 | With respect to food for human consumption that is to be | ||||||
17 | consumed off the
premises where it is sold (other than | ||||||
18 | alcoholic beverages, soft drinks, and
food that has been | ||||||
19 | prepared for immediate consumption) and prescription and
| ||||||
20 | nonprescription medicines, drugs, medical appliances, products | ||||||
21 | classified as Class III medical devices by the United States | ||||||
22 | Food and Drug Administration that are used for cancer treatment | ||||||
23 | pursuant to a prescription, as well as any accessories and | ||||||
24 | components related to those devices, modifications to a motor
| ||||||
25 | vehicle for the purpose of rendering it usable by a person with | ||||||
26 | a disability, and
insulin, urine testing materials, syringes, |
| |||||||
| |||||||
1 | and needles used by diabetics, for
human use, the tax is | ||||||
2 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
3 | until September 1, 2009: the term "soft drinks" means any | ||||||
4 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
5 | carbonated or not, including but not limited to
soda water, | ||||||
6 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
7 | other
preparations commonly known as soft drinks of whatever | ||||||
8 | kind or description that
are contained in any closed or sealed | ||||||
9 | bottle, can, carton, or container,
regardless of size; but | ||||||
10 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
11 | water, infant formula, milk or milk products as defined in the | ||||||
12 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
13 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
14 | Notwithstanding any other provisions of this
Act, | ||||||
15 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
16 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
17 | drinks" do not include beverages that contain milk or milk | ||||||
18 | products, soy, rice or similar milk substitutes, or greater | ||||||
19 | than 50% of vegetable or fruit juice by volume. | ||||||
20 | Until August 1, 2009, and notwithstanding any other | ||||||
21 | provisions of this
Act, "food for human consumption that is to | ||||||
22 | be consumed off the premises where
it is sold" includes all | ||||||
23 | food sold through a vending machine, except soft
drinks and | ||||||
24 | food products that are dispensed hot from a vending machine,
| ||||||
25 | regardless of the location of the vending machine. Beginning | ||||||
26 | August 1, 2009, and notwithstanding any other provisions of |
| |||||||
| |||||||
1 | this Act, "food for human consumption that is to be consumed | ||||||
2 | off the premises where it is sold" includes all food sold | ||||||
3 | through a vending machine, except soft drinks, candy, and food | ||||||
4 | products that are dispensed hot from a vending machine, | ||||||
5 | regardless of the location of the vending machine.
| ||||||
6 | Notwithstanding any other provisions of this
Act, | ||||||
7 | beginning September 1, 2009, "food for human consumption that | ||||||
8 | is to be consumed off the premises where
it is sold" does not | ||||||
9 | include candy. For purposes of this Section, "candy" means a | ||||||
10 | preparation of sugar, honey, or other natural or artificial | ||||||
11 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
12 | ingredients or flavorings in the form of bars, drops, or | ||||||
13 | pieces. "Candy" does not include any preparation that contains | ||||||
14 | flour or requires refrigeration. | ||||||
15 | Notwithstanding any other provisions of this
Act, | ||||||
16 | beginning September 1, 2009, "nonprescription medicines and | ||||||
17 | drugs" does not include grooming and hygiene products. For | ||||||
18 | purposes of this Section, "grooming and hygiene products" | ||||||
19 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
20 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
21 | lotions and screens, unless those products are available by | ||||||
22 | prescription only, regardless of whether the products meet the | ||||||
23 | definition of "over-the-counter-drugs". For the purposes of | ||||||
24 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
25 | use that contains a label that identifies the product as a drug | ||||||
26 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
| |||||||
| |||||||
1 | label includes: | ||||||
2 | (A) A "Drug Facts" panel; or | ||||||
3 | (B) A statement of the "active ingredient(s)" with a | ||||||
4 | list of those ingredients contained in the compound, | ||||||
5 | substance or preparation.
| ||||||
6 | Beginning on the effective date of this amendatory Act of | ||||||
7 | the 98th General Assembly, "prescription and nonprescription | ||||||
8 | medicines and drugs" includes medical cannabis purchased from a | ||||||
9 | registered dispensing organization under the Compassionate Use | ||||||
10 | of Medical Cannabis Pilot Program Act. | ||||||
11 | (Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||||||
12 | 99-858, eff. 8-19-16.)
| ||||||
13 | ARTICLE 35. GRAPHIC ARTS | ||||||
14 | Section 35-5. The Use Tax Act is amended by changing | ||||||
15 | Sections 3-5 and 3-50 as follows:
| ||||||
16 | (35 ILCS 105/3-5)
| ||||||
17 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
18 | personal property is exempt from the tax imposed by this Act:
| ||||||
19 | (1) Personal property purchased from a corporation, | ||||||
20 | society, association,
foundation, institution, or | ||||||
21 | organization, other than a limited liability
company, that is | ||||||
22 | organized and operated as a not-for-profit service enterprise
| ||||||
23 | for the benefit of persons 65 years of age or older if the |
| |||||||
| |||||||
1 | personal property was not purchased by the enterprise for the | ||||||
2 | purpose of resale by the
enterprise.
| ||||||
3 | (2) Personal property purchased by a not-for-profit | ||||||
4 | Illinois county
fair association for use in conducting, | ||||||
5 | operating, or promoting the
county fair.
| ||||||
6 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
7 | cultural organization that establishes, by proof required by | ||||||
8 | the
Department by
rule, that it has received an exemption under | ||||||
9 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
10 | organized and operated primarily for the
presentation
or | ||||||
11 | support of arts or cultural programming, activities, or | ||||||
12 | services. These
organizations include, but are not limited to, | ||||||
13 | music and dramatic arts
organizations such as symphony | ||||||
14 | orchestras and theatrical groups, arts and
cultural service | ||||||
15 | organizations, local arts councils, visual arts organizations,
| ||||||
16 | and media arts organizations.
On and after the effective date | ||||||
17 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
18 | an entity otherwise eligible for this exemption shall not
make | ||||||
19 | tax-free purchases unless it has an active identification | ||||||
20 | number issued by
the Department.
| ||||||
21 | (4) Personal property purchased by a governmental body, by | ||||||
22 | a
corporation, society, association, foundation, or | ||||||
23 | institution organized and
operated exclusively for charitable, | ||||||
24 | religious, or educational purposes, or
by a not-for-profit | ||||||
25 | corporation, society, association, foundation,
institution, or | ||||||
26 | organization that has no compensated officers or employees
and |
| |||||||
| |||||||
1 | that is organized and operated primarily for the recreation of | ||||||
2 | persons
55 years of age or older. A limited liability company | ||||||
3 | may qualify for the
exemption under this paragraph only if the | ||||||
4 | limited liability company is
organized and operated | ||||||
5 | exclusively for educational purposes. On and after July
1, | ||||||
6 | 1987, however, no entity otherwise eligible for this exemption | ||||||
7 | shall make
tax-free purchases unless it has an active exemption | ||||||
8 | identification number
issued by the Department.
| ||||||
9 | (5) Until July 1, 2003, a passenger car that is a | ||||||
10 | replacement vehicle to
the extent that the
purchase price of | ||||||
11 | the car is subject to the Replacement Vehicle Tax.
| ||||||
12 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
13 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
14 | equipment, including
repair and replacement
parts, both new and | ||||||
15 | used, and including that manufactured on special order,
| ||||||
16 | certified by the purchaser to be used primarily for graphic | ||||||
17 | arts production,
and including machinery and equipment | ||||||
18 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
19 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
20 | acting as catalysts effect a direct and immediate change
upon a | ||||||
21 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
22 | machinery and equipment is included in the manufacturing and | ||||||
23 | assembling machinery and equipment exemption under paragraph | ||||||
24 | (18).
| ||||||
25 | (7) Farm chemicals.
| ||||||
26 | (8) Legal tender, currency, medallions, or gold or silver |
| |||||||
| |||||||
1 | coinage issued by
the State of Illinois, the government of the | ||||||
2 | United States of America, or the
government of any foreign | ||||||
3 | country, and bullion.
| ||||||
4 | (9) Personal property purchased from a teacher-sponsored | ||||||
5 | student
organization affiliated with an elementary or | ||||||
6 | secondary school located in
Illinois.
| ||||||
7 | (10) A motor vehicle that is used for automobile renting, | ||||||
8 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
9 | Act.
| ||||||
10 | (11) Farm machinery and equipment, both new and used,
| ||||||
11 | including that manufactured on special order, certified by the | ||||||
12 | purchaser
to be used primarily for production agriculture or | ||||||
13 | State or federal
agricultural programs, including individual | ||||||
14 | replacement parts for
the machinery and equipment, including | ||||||
15 | machinery and equipment
purchased
for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
19 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
20 | but excluding other motor
vehicles required to be
registered | ||||||
21 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
22 | hoop houses used for propagating, growing, or
overwintering | ||||||
23 | plants shall be considered farm machinery and equipment under
| ||||||
24 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
25 | boxes shall include units sold
separately from a motor vehicle | ||||||
26 | required to be licensed and units sold mounted
on a motor |
| |||||||
| |||||||
1 | vehicle required to be licensed if the selling price of the | ||||||
2 | tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to, soil testing
sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and
activities such as, but not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. This item (11) is exempt
from the | ||||||
18 | provisions of
Section 3-90.
| ||||||
19 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
20 | to or used by an air common
carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment, or
storage in the conduct | ||||||
22 | of its business as an air common carrier, for a
flight destined | ||||||
23 | for or returning from a location or locations
outside the | ||||||
24 | United States without regard to previous or subsequent domestic
| ||||||
25 | stopovers.
| ||||||
26 | Beginning July 1, 2013, fuel and petroleum products sold to |
| |||||||
| |||||||
1 | or used by an air carrier, certified by the carrier to be used | ||||||
2 | for consumption, shipment, or storage in the conduct of its | ||||||
3 | business as an air common carrier, for a flight that (i) is | ||||||
4 | engaged in foreign trade or is engaged in trade between the | ||||||
5 | United States and any of its possessions and (ii) transports at | ||||||
6 | least one individual or package for hire from the city of | ||||||
7 | origination to the city of final destination on the same | ||||||
8 | aircraft, without regard to a change in the flight number of | ||||||
9 | that aircraft. | ||||||
10 | (13) Proceeds of mandatory service charges separately
| ||||||
11 | stated on customers' bills for the purchase and consumption of | ||||||
12 | food and
beverages purchased at retail from a retailer, to the | ||||||
13 | extent that the proceeds
of the service charge are in fact | ||||||
14 | turned over as tips or as a substitute
for tips to the | ||||||
15 | employees who participate directly in preparing, serving,
| ||||||
16 | hosting or cleaning up the food or beverage function with | ||||||
17 | respect to which
the service charge is imposed.
| ||||||
18 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
19 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
20 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
21 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
22 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
23 | individual replacement part for oil
field exploration, | ||||||
24 | drilling, and production equipment, and (vi) machinery and
| ||||||
25 | equipment purchased
for lease; but excluding motor vehicles | ||||||
26 | required to be registered under the
Illinois Vehicle Code.
|
| |||||||
| |||||||
1 | (15) Photoprocessing machinery and equipment, including | ||||||
2 | repair and
replacement parts, both new and used, including that
| ||||||
3 | manufactured on special order, certified by the purchaser to be | ||||||
4 | used
primarily for photoprocessing, and including
| ||||||
5 | photoprocessing machinery and equipment purchased for lease.
| ||||||
6 | (16) Coal and aggregate exploration, mining, off-highway | ||||||
7 | hauling,
processing, maintenance, and reclamation equipment,
| ||||||
8 | including replacement parts and equipment, and
including | ||||||
9 | equipment purchased for lease, but excluding motor
vehicles | ||||||
10 | required to be registered under the Illinois Vehicle Code. The | ||||||
11 | changes made to this Section by Public Act 97-767 apply on and | ||||||
12 | after July 1, 2003, but no claim for credit or refund is | ||||||
13 | allowed on or after August 16, 2013 (the effective date of | ||||||
14 | Public Act 98-456)
for such taxes paid during the period | ||||||
15 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
16 | effective date of Public Act 98-456).
| ||||||
17 | (17) Until July 1, 2003, distillation machinery and | ||||||
18 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
19 | retailer, certified by the user to be used
only for the | ||||||
20 | production of ethyl alcohol that will be used for consumption
| ||||||
21 | as motor fuel or as a component of motor fuel for the personal | ||||||
22 | use of the
user, and not subject to sale or resale.
| ||||||
23 | (18) Manufacturing and assembling machinery and equipment | ||||||
24 | used
primarily in the process of manufacturing or assembling | ||||||
25 | tangible
personal property for wholesale or retail sale or | ||||||
26 | lease, whether that sale
or lease is made directly by the |
| |||||||
| |||||||
1 | manufacturer or by some other person,
whether the materials | ||||||
2 | used in the process are
owned by the manufacturer or some other | ||||||
3 | person, or whether that sale or
lease is made apart from or as | ||||||
4 | an incident to the seller's engaging in
the service occupation | ||||||
5 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
6 | other similar items of no commercial value on
special order for | ||||||
7 | a particular purchaser. The exemption provided by this | ||||||
8 | paragraph (18) does not include machinery and equipment used in | ||||||
9 | (i) the generation of electricity for wholesale or retail sale; | ||||||
10 | (ii) the generation or treatment of natural or artificial gas | ||||||
11 | for wholesale or retail sale that is delivered to customers | ||||||
12 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
13 | water for wholesale or retail sale that is delivered to | ||||||
14 | customers through pipes, pipelines, or mains. The provisions of | ||||||
15 | Public Act 98-583 are declaratory of existing law as to the | ||||||
16 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
17 | the exemption provided by this paragraph (18) includes, but is | ||||||
18 | not limited to, graphic arts machinery and equipment, as | ||||||
19 | defined in paragraph (6) of this Section.
| ||||||
20 | (19) Personal property delivered to a purchaser or | ||||||
21 | purchaser's donee
inside Illinois when the purchase order for | ||||||
22 | that personal property was
received by a florist located | ||||||
23 | outside Illinois who has a florist located
inside Illinois | ||||||
24 | deliver the personal property.
| ||||||
25 | (20) Semen used for artificial insemination of livestock | ||||||
26 | for direct
agricultural production.
|
| |||||||
| |||||||
1 | (21) Horses, or interests in horses, registered with and | ||||||
2 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
3 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
4 | Horse Association, United States
Trotting Association, or | ||||||
5 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
6 | racing for prizes. This item (21) is exempt from the provisions | ||||||
7 | of Section 3-90, and the exemption provided for under this item | ||||||
8 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
9 | claim for credit or refund is allowed on or after January 1, | ||||||
10 | 2008
for such taxes paid during the period beginning May 30, | ||||||
11 | 2000 and ending on January 1, 2008.
| ||||||
12 | (22) Computers and communications equipment utilized for | ||||||
13 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
14 | analysis, or treatment of hospital patients purchased by a | ||||||
15 | lessor who leases
the
equipment, under a lease of one year or | ||||||
16 | longer executed or in effect at the
time the lessor would | ||||||
17 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
18 | hospital
that has been issued an active tax exemption | ||||||
19 | identification number by
the
Department under Section 1g of the | ||||||
20 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
21 | manner that does not qualify for
this exemption or is used in | ||||||
22 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
23 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
24 | case may
be, based on the fair market value of the property at | ||||||
25 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
26 | or attempt to collect an
amount (however
designated) that |
| |||||||
| |||||||
1 | purports to reimburse that lessor for the tax imposed by this
| ||||||
2 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
3 | has not been
paid by the lessor. If a lessor improperly | ||||||
4 | collects any such amount from the
lessee, the lessee shall have | ||||||
5 | a legal right to claim a refund of that amount
from the lessor. | ||||||
6 | If, however, that amount is not refunded to the lessee for
any | ||||||
7 | reason, the lessor is liable to pay that amount to the | ||||||
8 | Department.
| ||||||
9 | (23) Personal property purchased by a lessor who leases the
| ||||||
10 | property, under
a
lease of
one year or longer executed or in | ||||||
11 | effect at the time
the lessor would otherwise be subject to the | ||||||
12 | tax imposed by this Act,
to a governmental body
that has been | ||||||
13 | issued an active sales tax exemption identification number by | ||||||
14 | the
Department under Section 1g of the Retailers' Occupation | ||||||
15 | Tax Act.
If the
property is leased in a manner that does not | ||||||
16 | qualify for
this exemption
or used in any other non-exempt | ||||||
17 | manner, the lessor shall be liable for the
tax imposed under | ||||||
18 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
19 | on the fair market value of the property at the time the
| ||||||
20 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
21 | to collect an
amount (however
designated) that purports to | ||||||
22 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
23 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
24 | paid by the lessor. If a lessor improperly collects any such | ||||||
25 | amount from the
lessee, the lessee shall have a legal right to | ||||||
26 | claim a refund of that amount
from the lessor. If, however, |
| |||||||
| |||||||
1 | that amount is not refunded to the lessee for
any reason, the | ||||||
2 | lessor is liable to pay that amount to the Department.
| ||||||
3 | (24) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995
and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004,
personal property that is
donated for | ||||||
6 | disaster relief to be used in a State or federally declared
| ||||||
7 | disaster area in Illinois or bordering Illinois by a | ||||||
8 | manufacturer or retailer
that is registered in this State to a | ||||||
9 | corporation, society, association,
foundation, or institution | ||||||
10 | that has been issued a sales tax exemption
identification | ||||||
11 | number by the Department that assists victims of the disaster
| ||||||
12 | who reside within the declared disaster area.
| ||||||
13 | (25) Beginning with taxable years ending on or after | ||||||
14 | December
31, 1995 and
ending with taxable years ending on or | ||||||
15 | before December 31, 2004, personal
property that is used in the | ||||||
16 | performance of infrastructure repairs in this
State, including | ||||||
17 | but not limited to municipal roads and streets, access roads,
| ||||||
18 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
19 | line extensions,
water distribution and purification | ||||||
20 | facilities, storm water drainage and
retention facilities, and | ||||||
21 | sewage treatment facilities, resulting from a State
or | ||||||
22 | federally declared disaster in Illinois or bordering Illinois | ||||||
23 | when such
repairs are initiated on facilities located in the | ||||||
24 | declared disaster area
within 6 months after the disaster.
| ||||||
25 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
26 | at a "game
breeding
and hunting preserve area" as that term is
|
| |||||||
| |||||||
1 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
2 | provisions
of
Section 3-90.
| ||||||
3 | (27) A motor vehicle, as that term is defined in Section | ||||||
4 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
5 | corporation, limited liability company,
society, association, | ||||||
6 | foundation, or institution that is determined by the
Department | ||||||
7 | to be organized and operated exclusively for educational | ||||||
8 | purposes.
For purposes of this exemption, "a corporation, | ||||||
9 | limited liability company,
society, association, foundation, | ||||||
10 | or institution organized and operated
exclusively for | ||||||
11 | educational purposes" means all tax-supported public schools,
| ||||||
12 | private schools that offer systematic instruction in useful | ||||||
13 | branches of
learning by methods common to public schools and | ||||||
14 | that compare favorably in
their scope and intensity with the | ||||||
15 | course of study presented in tax-supported
schools, and | ||||||
16 | vocational or technical schools or institutes organized and
| ||||||
17 | operated exclusively to provide a course of study of not less | ||||||
18 | than 6 weeks
duration and designed to prepare individuals to | ||||||
19 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
20 | industrial, business, or commercial
occupation.
| ||||||
21 | (28) Beginning January 1, 2000, personal property, | ||||||
22 | including
food,
purchased through fundraising
events for the | ||||||
23 | benefit of
a public or private elementary or
secondary school, | ||||||
24 | a group of those schools, or one or more school
districts if | ||||||
25 | the events are
sponsored by an entity recognized by the school | ||||||
26 | district that consists
primarily of volunteers and includes
|
| |||||||
| |||||||
1 | parents and teachers of the school children. This paragraph | ||||||
2 | does not apply
to fundraising
events (i) for the benefit of | ||||||
3 | private home instruction or (ii)
for which the fundraising | ||||||
4 | entity purchases the personal property sold at
the events from | ||||||
5 | another individual or entity that sold the property for the
| ||||||
6 | purpose of resale by the fundraising entity and that
profits | ||||||
7 | from the sale to the
fundraising entity. This paragraph is | ||||||
8 | exempt
from the provisions
of Section 3-90.
| ||||||
9 | (29) Beginning January 1, 2000 and through December 31, | ||||||
10 | 2001, new or
used automatic vending
machines that prepare and | ||||||
11 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
12 | items, and replacement parts for these machines.
Beginning | ||||||
13 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
14 | for machines used in
commercial, coin-operated amusement and | ||||||
15 | vending business if a use or occupation
tax is paid on the | ||||||
16 | gross receipts derived from the use of the commercial,
| ||||||
17 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
18 | is exempt from the provisions of Section 3-90.
| ||||||
19 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
20 | food for human consumption that is to be consumed off the | ||||||
21 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
22 | drinks, and food that
has been prepared for immediate | ||||||
23 | consumption) and prescription and
nonprescription medicines, | ||||||
24 | drugs, medical appliances, and insulin, urine
testing | ||||||
25 | materials, syringes, and needles used by diabetics, for human | ||||||
26 | use, when
purchased for use by a person receiving medical |
| |||||||
| |||||||
1 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
2 | resides in a licensed long-term care facility,
as defined in | ||||||
3 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
4 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
5 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
6 | (31) Beginning on
the effective date of this amendatory Act | ||||||
7 | of the 92nd General Assembly,
computers and communications | ||||||
8 | equipment
utilized for any hospital purpose and equipment used | ||||||
9 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
10 | purchased by a lessor who leases
the equipment, under a lease | ||||||
11 | of one year or longer executed or in effect at the
time the | ||||||
12 | lessor would otherwise be subject to the tax imposed by this | ||||||
13 | Act, to a
hospital that has been issued an active tax exemption | ||||||
14 | identification number by
the Department under Section 1g of the | ||||||
15 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
16 | manner that does not qualify for this exemption or is
used in | ||||||
17 | any other nonexempt manner, the lessor shall be liable for the | ||||||
18 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
19 | case may be, based on
the fair market value of the property at | ||||||
20 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
21 | or attempt to collect an amount (however
designated) that | ||||||
22 | purports to reimburse that lessor for the tax imposed by this
| ||||||
23 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
24 | has not been
paid by the lessor. If a lessor improperly | ||||||
25 | collects any such amount from the
lessee, the lessee shall have | ||||||
26 | a legal right to claim a refund of that amount
from the lessor. |
| |||||||
| |||||||
1 | If, however, that amount is not refunded to the lessee for
any | ||||||
2 | reason, the lessor is liable to pay that amount to the | ||||||
3 | Department.
This paragraph is exempt from the provisions of | ||||||
4 | Section 3-90.
| ||||||
5 | (32) Beginning on
the effective date of this amendatory Act | ||||||
6 | of the 92nd General Assembly,
personal property purchased by a | ||||||
7 | lessor who leases the property,
under a lease of one year or | ||||||
8 | longer executed or in effect at the time the
lessor would | ||||||
9 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
10 | governmental body that has been issued an active sales tax | ||||||
11 | exemption
identification number by the Department under | ||||||
12 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
13 | property is leased in a manner that does not
qualify for this | ||||||
14 | exemption or used in any other nonexempt manner, the lessor
| ||||||
15 | shall be liable for the tax imposed under this Act or the | ||||||
16 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
17 | market value of the property at the time
the nonqualifying use | ||||||
18 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
19 | (however designated) that purports to reimburse that lessor for | ||||||
20 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
21 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
22 | lessor improperly collects any such
amount from the lessee, the | ||||||
23 | lessee shall have a legal right to claim a refund
of that | ||||||
24 | amount from the lessor. If, however, that amount is not | ||||||
25 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
26 | pay that amount to the
Department. This paragraph is exempt |
| |||||||
| |||||||
1 | from the provisions of Section 3-90.
| ||||||
2 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
3 | the use in this State of motor vehicles of
the second division | ||||||
4 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
5 | are subject to the commercial distribution fee imposed under | ||||||
6 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
7 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
8 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
9 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
10 | to the commercial distribution fee imposed under Section | ||||||
11 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
12 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
13 | this exemption applies to repair and
replacement parts added | ||||||
14 | after the initial purchase of such a motor vehicle if
that | ||||||
15 | motor
vehicle is used in a manner that would qualify for the | ||||||
16 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
17 | purposes of this paragraph, the term "used for commercial | ||||||
18 | purposes" means the transportation of persons or property in | ||||||
19 | furtherance of any commercial or industrial enterprise, | ||||||
20 | whether for-hire or not.
| ||||||
21 | (34) Beginning January 1, 2008, tangible personal property | ||||||
22 | used in the construction or maintenance of a community water | ||||||
23 | supply, as defined under Section 3.145 of the Environmental | ||||||
24 | Protection Act, that is operated by a not-for-profit | ||||||
25 | corporation that holds a valid water supply permit issued under | ||||||
26 | Title IV of the Environmental Protection Act. This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 3-90. | ||||||
2 | (35) Beginning January 1, 2010, materials, parts, | ||||||
3 | equipment, components, and furnishings incorporated into or | ||||||
4 | upon an aircraft as part of the modification, refurbishment, | ||||||
5 | completion, replacement, repair, or maintenance of the | ||||||
6 | aircraft. This exemption includes consumable supplies used in | ||||||
7 | the modification, refurbishment, completion, replacement, | ||||||
8 | repair, and maintenance of aircraft, but excludes any | ||||||
9 | materials, parts, equipment, components, and consumable | ||||||
10 | supplies used in the modification, replacement, repair, and | ||||||
11 | maintenance of aircraft engines or power plants, whether such | ||||||
12 | engines or power plants are installed or uninstalled upon any | ||||||
13 | such aircraft. "Consumable supplies" include, but are not | ||||||
14 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
15 | lubricants, cleaning solution, latex gloves, and protective | ||||||
16 | films. This exemption applies only to the use of qualifying | ||||||
17 | tangible personal property by persons who modify, refurbish, | ||||||
18 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
19 | hold an Air Agency Certificate and are empowered to operate an | ||||||
20 | approved repair station by the Federal Aviation | ||||||
21 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
22 | operations in accordance with Part 145 of the Federal Aviation | ||||||
23 | Regulations. The exemption does not include aircraft operated | ||||||
24 | by a commercial air carrier providing scheduled passenger air | ||||||
25 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
26 | of the Federal Aviation Regulations. The changes made to this |
| |||||||
| |||||||
1 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
2 | law. | ||||||
3 | (36) Tangible personal property purchased by a | ||||||
4 | public-facilities corporation, as described in Section | ||||||
5 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
6 | constructing or furnishing a municipal convention hall, but | ||||||
7 | only if the legal title to the municipal convention hall is | ||||||
8 | transferred to the municipality without any further | ||||||
9 | consideration by or on behalf of the municipality at the time | ||||||
10 | of the completion of the municipal convention hall or upon the | ||||||
11 | retirement or redemption of any bonds or other debt instruments | ||||||
12 | issued by the public-facilities corporation in connection with | ||||||
13 | the development of the municipal convention hall. This | ||||||
14 | exemption includes existing public-facilities corporations as | ||||||
15 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
16 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
17 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
18 | and menstrual cups. | ||||||
19 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
20 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
21 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
22 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
23 | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||||||
24 | Sec. 3-50. Manufacturing and assembly exemption. The | ||||||
25 | manufacturing
and assembling machinery and equipment exemption |
| |||||||
| |||||||
1 | includes
machinery and equipment that replaces machinery and | ||||||
2 | equipment in an
existing manufacturing facility as well as | ||||||
3 | machinery and equipment that
are for use in an expanded or new | ||||||
4 | manufacturing facility. The machinery and
equipment exemption | ||||||
5 | also includes machinery and equipment used in the
general | ||||||
6 | maintenance or repair of exempt machinery and equipment or for
| ||||||
7 | in-house manufacture of exempt machinery and equipment. | ||||||
8 | Beginning on July 1, 2017, the manufacturing and assembling | ||||||
9 | machinery and equipment exemption also includes graphic arts | ||||||
10 | machinery and equipment, as defined in paragraph (6) of Section | ||||||
11 | 3-5. The machinery and equipment exemption does not include | ||||||
12 | machinery and equipment used in (i) the generation of | ||||||
13 | electricity for wholesale or retail sale; (ii) the generation | ||||||
14 | or treatment of natural or artificial gas for wholesale or | ||||||
15 | retail sale that is delivered to customers through pipes, | ||||||
16 | pipelines, or mains; or (iii) the treatment of water for | ||||||
17 | wholesale or retail sale that is delivered to customers through | ||||||
18 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
19 | Act of the 98th General Assembly are declaratory of existing | ||||||
20 | law as to the meaning and scope of this exemption. For the
| ||||||
21 | purposes of this exemption, terms have the following
meanings:
| ||||||
22 | (1) "Manufacturing process" means the production of
an | ||||||
23 | article of tangible personal property, whether the article
| ||||||
24 | is a finished product or an article for use in the process | ||||||
25 | of manufacturing
or assembling a different article of | ||||||
26 | tangible personal property, by
a procedure commonly |
| |||||||
| |||||||
1 | regarded as manufacturing, processing, fabricating, or
| ||||||
2 | refining that changes some existing material into a | ||||||
3 | material
with a different form, use, or name. In relation | ||||||
4 | to a recognized integrated
business composed of a series of | ||||||
5 | operations that collectively constitute
manufacturing, or | ||||||
6 | individually constitute
manufacturing operations, the | ||||||
7 | manufacturing process commences with the
first operation | ||||||
8 | or stage of production in the series
and does not end until | ||||||
9 | the completion of the final product
in the last operation | ||||||
10 | or stage of production in the series. For purposes
of this | ||||||
11 | exemption, photoprocessing is a
manufacturing process of | ||||||
12 | tangible personal property for wholesale or retail
sale.
| ||||||
13 | (2) "Assembling process" means the production of
an | ||||||
14 | article of tangible personal property, whether the article
| ||||||
15 | is a finished product or an article for use in the process | ||||||
16 | of manufacturing
or assembling a different article of | ||||||
17 | tangible personal property, by the
combination of existing | ||||||
18 | materials in a manner commonly regarded as
assembling that | ||||||
19 | results in an article or material of a different
form, use, | ||||||
20 | or name.
| ||||||
21 | (3) "Machinery" means major
mechanical machines or | ||||||
22 | major components of those machines contributing to a
| ||||||
23 | manufacturing or assembling process.
| ||||||
24 | (4) "Equipment" includes an independent device
or tool | ||||||
25 | separate from machinery but essential to an integrated
| ||||||
26 | manufacturing or assembly process; including computers |
| |||||||
| |||||||
1 | used primarily in
a manufacturer's computer assisted | ||||||
2 | design,
computer assisted manufacturing (CAD/CAM) system; | ||||||
3 | any
subunit or assembly comprising a component of any | ||||||
4 | machinery or auxiliary,
adjunct, or attachment parts of | ||||||
5 | machinery, such as tools, dies, jigs,
fixtures, patterns, | ||||||
6 | and molds; and any parts that require
periodic replacement | ||||||
7 | in the course of normal operation; but does not
include | ||||||
8 | hand tools. Equipment includes chemicals or chemicals | ||||||
9 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and
immediate change | ||||||
11 | upon a
product being manufactured or assembled for | ||||||
12 | wholesale or retail sale or
lease. | ||||||
13 | (5) "Production related tangible personal property" | ||||||
14 | means all tangible personal property that is used or | ||||||
15 | consumed by the purchaser in a manufacturing facility in | ||||||
16 | which a manufacturing process takes place and includes, | ||||||
17 | without limitation, tangible personal property that is | ||||||
18 | purchased for incorporation into real estate within a | ||||||
19 | manufacturing facility and tangible personal property that | ||||||
20 | is used or consumed in activities such as research and | ||||||
21 | development, preproduction material handling, receiving, | ||||||
22 | quality control, inventory control, storage, staging, and | ||||||
23 | packaging for shipping and transportation purposes. | ||||||
24 | "Production related tangible personal property" does not | ||||||
25 | include (i) tangible personal property that is used, within | ||||||
26 | or without a manufacturing facility, in sales, purchasing, |
| |||||||
| |||||||
1 | accounting, fiscal management, marketing, personnel | ||||||
2 | recruitment or selection, or landscaping or (ii) tangible | ||||||
3 | personal property that is required to be titled or | ||||||
4 | registered with a department, agency, or unit of federal, | ||||||
5 | State, or local government.
| ||||||
6 | The manufacturing and assembling machinery and equipment | ||||||
7 | exemption includes production related tangible personal | ||||||
8 | property that is purchased on or after July 1, 2007 and on or | ||||||
9 | before June 30, 2008. The exemption for production related | ||||||
10 | tangible personal property is subject to both of the following | ||||||
11 | limitations: | ||||||
12 | (1) The maximum amount of the exemption for any one | ||||||
13 | taxpayer may not exceed 5% of the purchase price of | ||||||
14 | production related tangible personal property that is | ||||||
15 | purchased on or after July 1, 2007 and on or before June | ||||||
16 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
17 | be earned by the purchase of production related tangible | ||||||
18 | personal property for which an exemption is received under | ||||||
19 | this Section. | ||||||
20 | (2) The maximum aggregate amount of the exemptions for | ||||||
21 | production related tangible personal property awarded | ||||||
22 | under this Act and the Retailers' Occupation Tax Act to all | ||||||
23 | taxpayers may not exceed $10,000,000. If the claims for the | ||||||
24 | exemption exceed $10,000,000, then the Department shall | ||||||
25 | reduce the amount of the exemption to each taxpayer on a | ||||||
26 | pro rata basis. |
| |||||||
| |||||||
1 | The Department may adopt rules to implement and administer the | ||||||
2 | exemption for production related tangible personal property. | ||||||
3 | The manufacturing and assembling machinery and equipment
| ||||||
4 | exemption includes the sale of materials to a purchaser who
| ||||||
5 | produces exempted types of machinery, equipment, or tools and | ||||||
6 | who rents or
leases that machinery, equipment, or tools to a
| ||||||
7 | manufacturer of tangible
personal property. This exemption | ||||||
8 | also includes the sale of materials to a
purchaser who | ||||||
9 | manufactures those materials into an exempted type of
| ||||||
10 | machinery, equipment, or tools that the purchaser uses
himself | ||||||
11 | or herself in the
manufacturing of tangible personal property. | ||||||
12 | This exemption includes the
sale of exempted types of machinery | ||||||
13 | or equipment to a
purchaser who is not the manufacturer, but | ||||||
14 | who rents or leases the use of
the property to a manufacturer. | ||||||
15 | The purchaser of the machinery and
equipment who has an active | ||||||
16 | resale registration number shall
furnish that number to the | ||||||
17 | seller at the time of purchase.
A user of the machinery, | ||||||
18 | equipment, or tools without an
active resale registration | ||||||
19 | number shall prepare a certificate of exemption
for each | ||||||
20 | transaction stating facts establishing the exemption for that
| ||||||
21 | transaction, and that certificate shall be
available to the | ||||||
22 | Department for inspection or audit. The Department shall
| ||||||
23 | prescribe the form of the certificate. Informal rulings, | ||||||
24 | opinions, or
letters issued by the Department in
response to an | ||||||
25 | inquiry or request for an opinion from any person
regarding the | ||||||
26 | coverage and applicability of this exemption to specific
|
| |||||||
| |||||||
1 | devices shall be published, maintained as a public record, and | ||||||
2 | made
available for public inspection and copying. If the | ||||||
3 | informal ruling,
opinion, or letter contains trade secrets or | ||||||
4 | other confidential
information, where possible, the Department | ||||||
5 | shall delete that information
before publication. Whenever | ||||||
6 | informal rulings, opinions, or
letters contain a policy of | ||||||
7 | general applicability, the Department
shall formulate and | ||||||
8 | adopt that policy as a rule in accordance with the
Illinois | ||||||
9 | Administrative Procedure Act.
| ||||||
10 | The manufacturing and assembling machinery and equipment
| ||||||
11 | exemption is exempt from the provisions of Section 3-90. | ||||||
12 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
13 | Section 35-10. The Service Use Tax Act is amended by | ||||||
14 | changing Sections 2 and 3-5 as follows:
| ||||||
15 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
16 | Sec. 2. Definitions. | ||||||
17 | "Use" means the exercise by any person of any right or | ||||||
18 | power
over tangible personal property incident to the ownership | ||||||
19 | of that
property, but does not include the sale or use for | ||||||
20 | demonstration by him
of that property in any form as tangible | ||||||
21 | personal property in the
regular course of business.
"Use" does | ||||||
22 | not mean the interim
use of
tangible personal property nor the | ||||||
23 | physical incorporation of tangible
personal property, as an | ||||||
24 | ingredient or constituent, into other tangible
personal |
| |||||||
| |||||||
1 | property, (a) which is sold in the regular course of business
| ||||||
2 | or (b) which the person incorporating such ingredient or | ||||||
3 | constituent
therein has undertaken at the time of such purchase | ||||||
4 | to cause to be
transported in interstate commerce to | ||||||
5 | destinations outside the State of
Illinois.
| ||||||
6 | "Purchased from a serviceman" means the acquisition of the | ||||||
7 | ownership
of, or title to, tangible personal property through a | ||||||
8 | sale of service.
| ||||||
9 | "Purchaser" means any person who, through a sale of | ||||||
10 | service, acquires
the ownership of, or title to, any tangible | ||||||
11 | personal property.
| ||||||
12 | "Cost price" means the consideration paid by the serviceman | ||||||
13 | for a
purchase valued in money, whether paid in money or | ||||||
14 | otherwise, including
cash, credits and services, and shall be | ||||||
15 | determined without any
deduction on account of the supplier's | ||||||
16 | cost of the property sold or on
account of any other expense | ||||||
17 | incurred by the supplier. When a serviceman
contracts out part | ||||||
18 | or all of the services required in his sale of service,
it | ||||||
19 | shall be presumed that the cost price to the serviceman of the | ||||||
20 | property
transferred to him or her by his or her subcontractor | ||||||
21 | is equal to 50% of
the subcontractor's charges to the | ||||||
22 | serviceman in the absence of proof of
the consideration paid by | ||||||
23 | the subcontractor for the purchase of such property.
| ||||||
24 | "Selling price" means the consideration for a sale valued | ||||||
25 | in money
whether received in money or otherwise, including | ||||||
26 | cash, credits and
service, and shall be determined without any |
| |||||||
| |||||||
1 | deduction on account of the
serviceman's cost of the property | ||||||
2 | sold, the cost of materials used,
labor or service cost or any | ||||||
3 | other expense whatsoever, but does not
include interest or | ||||||
4 | finance charges which appear as separate items on
the bill of | ||||||
5 | sale or sales contract nor charges that are added to prices
by | ||||||
6 | sellers on account of the seller's duty to collect, from the
| ||||||
7 | purchaser, the tax that is imposed by this Act.
| ||||||
8 | "Department" means the Department of Revenue.
| ||||||
9 | "Person" means any natural individual, firm, partnership,
| ||||||
10 | association, joint stock company, joint venture, public or | ||||||
11 | private
corporation, limited liability company, and any | ||||||
12 | receiver, executor, trustee,
guardian or other representative | ||||||
13 | appointed by order of any court.
| ||||||
14 | "Sale of service" means any transaction except:
| ||||||
15 | (1) a retail sale of tangible personal property taxable | ||||||
16 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
17 | Tax Act.
| ||||||
18 | (2) a sale of tangible personal property for the | ||||||
19 | purpose of resale
made in compliance with Section 2c of the | ||||||
20 | Retailers' Occupation Tax Act.
| ||||||
21 | (3) except as hereinafter provided, a sale or transfer | ||||||
22 | of tangible
personal property as an incident to the | ||||||
23 | rendering of service for or by
any governmental body, or | ||||||
24 | for or by any corporation, society,
association, | ||||||
25 | foundation or institution organized and operated
| ||||||
26 | exclusively for charitable, religious or educational |
| |||||||
| |||||||
1 | purposes or any
not-for-profit corporation, society, | ||||||
2 | association, foundation,
institution or organization which | ||||||
3 | has no compensated officers or
employees and which is | ||||||
4 | organized and operated primarily for the
recreation of | ||||||
5 | persons 55 years of age or older. A limited liability | ||||||
6 | company
may qualify for the exemption under this paragraph | ||||||
7 | only if the limited
liability company is organized and | ||||||
8 | operated exclusively for educational
purposes.
| ||||||
9 | (4) a sale or transfer of tangible personal
property as | ||||||
10 | an incident to the
rendering of service for interstate | ||||||
11 | carriers for hire for use as rolling stock
moving in | ||||||
12 | interstate commerce or by lessors under a lease of one year | ||||||
13 | or
longer, executed or in effect at the time of purchase of | ||||||
14 | personal property, to
interstate carriers for hire for use | ||||||
15 | as rolling stock moving in interstate
commerce so long as | ||||||
16 | so used by such interstate carriers for hire, and equipment
| ||||||
17 | operated by a telecommunications provider, licensed as a | ||||||
18 | common carrier by the
Federal Communications Commission, | ||||||
19 | which is permanently installed in or affixed
to aircraft | ||||||
20 | moving in interstate commerce.
| ||||||
21 | (4a) a sale or transfer of tangible personal
property | ||||||
22 | as an incident
to the rendering of service for owners, | ||||||
23 | lessors, or shippers of tangible
personal property which is | ||||||
24 | utilized by interstate carriers for hire for
use as rolling | ||||||
25 | stock moving in interstate commerce so long as so used by
| ||||||
26 | interstate carriers for hire, and equipment operated by a
|
| |||||||
| |||||||
1 | telecommunications provider, licensed as a common carrier | ||||||
2 | by the Federal
Communications Commission, which is | ||||||
3 | permanently installed in or affixed to
aircraft moving in | ||||||
4 | interstate commerce.
| ||||||
5 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
6 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
7 | division with a gross vehicle weight in excess of 8,000 | ||||||
8 | pounds as an
incident to the rendering of service if that | ||||||
9 | motor
vehicle is subject
to the commercial distribution fee | ||||||
10 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
11 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
12 | use in this State of motor vehicles of the second division: | ||||||
13 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
14 | pounds; (ii) that are subject to the commercial | ||||||
15 | distribution fee imposed under Section 3-815.1 of the | ||||||
16 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
17 | for commercial purposes. Through June 30, 2005, this
| ||||||
18 | exemption applies to repair and replacement parts added | ||||||
19 | after the
initial
purchase of such a motor vehicle if that | ||||||
20 | motor vehicle is used in a manner that
would
qualify for | ||||||
21 | the rolling stock exemption otherwise provided for in this | ||||||
22 | Act. For purposes of this paragraph, "used for commercial | ||||||
23 | purposes" means the transportation of persons or property | ||||||
24 | in furtherance of any commercial or industrial enterprise | ||||||
25 | whether for-hire or not.
| ||||||
26 | (5) a sale or transfer of machinery and equipment used |
| |||||||
| |||||||
1 | primarily in the
process of the manufacturing or | ||||||
2 | assembling, either in an existing, an expanded
or a new | ||||||
3 | manufacturing facility, of tangible personal property for | ||||||
4 | wholesale or
retail sale or lease, whether such sale or | ||||||
5 | lease is made directly by the
manufacturer or by some other | ||||||
6 | person, whether the materials used in the process
are owned | ||||||
7 | by the manufacturer or some other person, or whether such | ||||||
8 | sale or
lease is made apart from or as an incident to the | ||||||
9 | seller's engaging in a
service occupation and the | ||||||
10 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
11 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
12 | exemption provided by this paragraph (5) does not include | ||||||
13 | machinery and equipment used in (i) the generation of | ||||||
14 | electricity for wholesale or retail sale; (ii) the | ||||||
15 | generation or treatment of natural or artificial gas for | ||||||
16 | wholesale or retail sale that is delivered to customers | ||||||
17 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
18 | of water for wholesale or retail sale that is delivered to | ||||||
19 | customers through pipes, pipelines, or mains. The | ||||||
20 | provisions of this amendatory Act of the 98th General | ||||||
21 | Assembly are declaratory of existing law as to the meaning | ||||||
22 | and scope of this exemption. The exemption under this | ||||||
23 | paragraph (5) is exempt from the provisions of Section | ||||||
24 | 3-75.
| ||||||
25 | (5a) the repairing, reconditioning or remodeling, for | ||||||
26 | a
common carrier by rail, of tangible personal property |
| |||||||
| |||||||
1 | which belongs to such
carrier for hire, and as to which | ||||||
2 | such carrier receives the physical possession
of the | ||||||
3 | repaired, reconditioned or remodeled item of tangible | ||||||
4 | personal property
in Illinois, and which such carrier | ||||||
5 | transports, or shares with another common
carrier in the | ||||||
6 | transportation of such property, out of Illinois on a | ||||||
7 | standard
uniform bill of lading showing the person who | ||||||
8 | repaired, reconditioned or
remodeled the property to a | ||||||
9 | destination outside Illinois, for use outside
Illinois.
| ||||||
10 | (5b) a sale or transfer of tangible personal property | ||||||
11 | which is produced by
the seller thereof on special order in | ||||||
12 | such a way as to have made the
applicable tax the Service | ||||||
13 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
14 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
15 | carrier by rail
which receives the physical possession of | ||||||
16 | such property in Illinois, and which
transports such | ||||||
17 | property, or shares with another common carrier in the
| ||||||
18 | transportation of such property, out of Illinois on a | ||||||
19 | standard uniform bill of
lading showing the seller of the | ||||||
20 | property as the shipper or consignor of such
property to a | ||||||
21 | destination outside Illinois, for use outside Illinois.
| ||||||
22 | (6) until July 1, 2003, a sale or transfer of | ||||||
23 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
24 | and assembled or installed by the retailer, which
machinery | ||||||
25 | and equipment is certified by the user to be used only for | ||||||
26 | the
production of ethyl alcohol that will be used for |
| |||||||
| |||||||
1 | consumption as motor fuel
or as a component of motor fuel | ||||||
2 | for the personal use of such user and not
subject to sale | ||||||
3 | or resale.
| ||||||
4 | (7) at the election of any serviceman not required to | ||||||
5 | be
otherwise registered as a retailer under Section 2a of | ||||||
6 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
7 | year sales
of service in which the aggregate annual cost | ||||||
8 | price of tangible
personal property transferred as an | ||||||
9 | incident to the sales of service is
less than 35%, or 75% | ||||||
10 | in the case of servicemen transferring prescription
drugs | ||||||
11 | or servicemen engaged in graphic arts production, of the | ||||||
12 | aggregate
annual total gross receipts from all sales of | ||||||
13 | service. The purchase of
such tangible personal property by | ||||||
14 | the serviceman shall be subject to tax
under the Retailers' | ||||||
15 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
16 | primary serviceman who has made the election described in | ||||||
17 | this paragraph
subcontracts service work to a secondary | ||||||
18 | serviceman who has also made the
election described in this | ||||||
19 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
20 | liability if the secondary serviceman (i) has paid or will | ||||||
21 | pay
Use
Tax on his or her cost price of any tangible | ||||||
22 | personal property transferred
to the primary serviceman | ||||||
23 | and (ii) certifies that fact in writing to the
primary
| ||||||
24 | serviceman.
| ||||||
25 | Tangible personal property transferred incident to the | ||||||
26 | completion of a
maintenance agreement is exempt from the tax |
| |||||||
| |||||||
1 | imposed pursuant to this Act.
| ||||||
2 | Exemption (5) also includes machinery and equipment used in | ||||||
3 | the general
maintenance or repair of such exempt machinery and | ||||||
4 | equipment or for in-house
manufacture of exempt machinery and | ||||||
5 | equipment. On and after July 1, 2017, exemption (5) also
| ||||||
6 | includes graphic arts machinery and equipment, as
defined in | ||||||
7 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
8 | exemption does not include machinery and equipment used in (i) | ||||||
9 | the generation of electricity for wholesale or retail sale; | ||||||
10 | (ii) the generation or treatment of natural or artificial gas | ||||||
11 | for wholesale or retail sale that is delivered to customers | ||||||
12 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
13 | water for wholesale or retail sale that is delivered to | ||||||
14 | customers through pipes, pipelines, or mains. The provisions of | ||||||
15 | this amendatory Act of the 98th General Assembly are | ||||||
16 | declaratory of existing law as to the meaning and scope of this | ||||||
17 | exemption. For the purposes of exemption
(5), each of these | ||||||
18 | terms shall have the following meanings: (1) "manufacturing
| ||||||
19 | process" shall mean the production of any article of tangible | ||||||
20 | personal
property, whether such article is a finished product | ||||||
21 | or an article for use in
the process of manufacturing or | ||||||
22 | assembling a different article of tangible
personal property, | ||||||
23 | by procedures commonly regarded as manufacturing,
processing, | ||||||
24 | fabricating, or refining which changes some existing
material | ||||||
25 | or materials into a material with a different form, use or
| ||||||
26 | name. In relation to a recognized integrated business composed |
| |||||||
| |||||||
1 | of a
series of operations which collectively constitute | ||||||
2 | manufacturing, or
individually constitute manufacturing | ||||||
3 | operations, the manufacturing
process shall be deemed to | ||||||
4 | commence with the first operation or stage of
production in the | ||||||
5 | series, and shall not be deemed to end until the
completion of | ||||||
6 | the final product in the last operation or stage of
production | ||||||
7 | in the series; and further, for purposes of exemption (5),
| ||||||
8 | photoprocessing is deemed to be a manufacturing process of | ||||||
9 | tangible
personal property for wholesale or retail sale; (2) | ||||||
10 | "assembling process" shall
mean the production of any article | ||||||
11 | of tangible personal property, whether such
article is a | ||||||
12 | finished product or an article for use in the process of
| ||||||
13 | manufacturing or assembling a different article of tangible | ||||||
14 | personal
property, by the combination of existing materials in | ||||||
15 | a manner commonly
regarded as assembling which results in a | ||||||
16 | material of a different form,
use or name; (3) "machinery" | ||||||
17 | shall mean major mechanical machines or
major components of | ||||||
18 | such machines contributing to a manufacturing or
assembling | ||||||
19 | process; and (4) "equipment" shall include any independent
| ||||||
20 | device or tool separate from any machinery but essential to an
| ||||||
21 | integrated manufacturing or assembly process; including | ||||||
22 | computers
used primarily in a manufacturer's computer
assisted | ||||||
23 | design, computer assisted manufacturing (CAD/CAM) system;
or | ||||||
24 | any subunit or assembly comprising a component of any machinery | ||||||
25 | or
auxiliary, adjunct or attachment parts of machinery, such as | ||||||
26 | tools, dies,
jigs, fixtures, patterns and molds; or any parts |
| |||||||
| |||||||
1 | which require periodic
replacement in the course of normal | ||||||
2 | operation; but shall not include hand
tools.
Equipment includes | ||||||
3 | chemicals or chemicals acting as catalysts but only if the
| ||||||
4 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
5 | immediate change
upon a
product being manufactured or assembled | ||||||
6 | for wholesale or retail sale or
lease.
The purchaser of such | ||||||
7 | machinery and equipment who has an active
resale registration | ||||||
8 | number shall furnish such number to the seller at the
time of | ||||||
9 | purchase. The user of such machinery and equipment and tools
| ||||||
10 | without an active resale registration number shall prepare a | ||||||
11 | certificate of
exemption for each transaction stating facts | ||||||
12 | establishing the exemption for
that transaction, which | ||||||
13 | certificate shall be available to the Department
for inspection | ||||||
14 | or audit. The Department shall prescribe the form of the
| ||||||
15 | certificate.
| ||||||
16 | Any informal rulings, opinions or letters issued by the | ||||||
17 | Department in
response to an inquiry or request for any opinion | ||||||
18 | from any person
regarding the coverage and applicability of | ||||||
19 | exemption (5) to specific
devices shall be published, | ||||||
20 | maintained as a public record, and made
available for public | ||||||
21 | inspection and copying. If the informal ruling,
opinion or | ||||||
22 | letter contains trade secrets or other confidential
| ||||||
23 | information, where possible the Department shall delete such | ||||||
24 | information
prior to publication. Whenever such informal | ||||||
25 | rulings, opinions, or
letters contain any policy of general | ||||||
26 | applicability, the Department
shall formulate and adopt such |
| |||||||
| |||||||
1 | policy as a rule in accordance with the
provisions of the | ||||||
2 | Illinois Administrative Procedure Act.
| ||||||
3 | On and after July 1, 1987, no entity otherwise eligible | ||||||
4 | under exemption
(3) of this Section shall make tax free | ||||||
5 | purchases unless it has an active
exemption identification | ||||||
6 | number issued by the Department.
| ||||||
7 | The purchase, employment and transfer of such tangible | ||||||
8 | personal
property as newsprint and ink for the primary purpose | ||||||
9 | of conveying news
(with or without other information) is not a | ||||||
10 | purchase, use or sale of
service or of tangible personal | ||||||
11 | property within the meaning of this Act.
| ||||||
12 | "Serviceman" means any person who is engaged in the | ||||||
13 | occupation of
making sales of service.
| ||||||
14 | "Sale at retail" means "sale at retail" as defined in the | ||||||
15 | Retailers'
Occupation Tax Act.
| ||||||
16 | "Supplier" means any person who makes sales of tangible | ||||||
17 | personal
property to servicemen for the purpose of resale as an | ||||||
18 | incident to a
sale of service.
| ||||||
19 | "Serviceman maintaining a place of business in this State", | ||||||
20 | or any
like term, means and includes any serviceman:
| ||||||
21 | 1. having or maintaining within this State, directly or | ||||||
22 | by a
subsidiary, an office, distribution house, sales | ||||||
23 | house, warehouse or
other place of business, or any agent | ||||||
24 | or other representative operating
within this State under | ||||||
25 | the authority of the serviceman or its
subsidiary, | ||||||
26 | irrespective of whether such place of business or agent or
|
| |||||||
| |||||||
1 | other representative is located here permanently or | ||||||
2 | temporarily, or
whether such serviceman or subsidiary is | ||||||
3 | licensed to do business in this
State; | ||||||
4 | 1.1. having a contract with a person located in this | ||||||
5 | State under which the person, for a commission or other | ||||||
6 | consideration based on the sale of service by the | ||||||
7 | serviceman, directly or indirectly refers potential | ||||||
8 | customers to the serviceman by providing to the potential | ||||||
9 | customers a promotional code or other mechanism that allows | ||||||
10 | the serviceman to track purchases referred by such persons. | ||||||
11 | Examples of mechanisms that allow the serviceman to track | ||||||
12 | purchases referred by such persons include but are not | ||||||
13 | limited to the use of a link on the person's Internet | ||||||
14 | website, promotional codes distributed through the | ||||||
15 | person's hand-delivered or mailed material, and | ||||||
16 | promotional codes distributed by the person through radio | ||||||
17 | or other broadcast media. The provisions of this paragraph | ||||||
18 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
19 | sales of service by the serviceman to customers who are | ||||||
20 | referred to the serviceman by all persons in this State | ||||||
21 | under such contracts exceed $10,000 during the preceding 4 | ||||||
22 | quarterly periods ending on the last day of March, June, | ||||||
23 | September, and December; a serviceman meeting the | ||||||
24 | requirements of this paragraph 1.1 shall be presumed to be | ||||||
25 | maintaining a place of business in this State but may rebut | ||||||
26 | this presumption by submitting proof that the referrals or |
| |||||||
| |||||||
1 | other activities pursued within this State by such persons | ||||||
2 | were not sufficient to meet the nexus standards of the | ||||||
3 | United States Constitution during the preceding 4 | ||||||
4 | quarterly periods; | ||||||
5 | 1.2. beginning July 1, 2011, having a contract with a | ||||||
6 | person located in this State under which: | ||||||
7 | A. the serviceman sells the same or substantially | ||||||
8 | similar line of services as the person located in this | ||||||
9 | State and does so using an identical or substantially | ||||||
10 | similar name, trade name, or trademark as the person | ||||||
11 | located in this State; and | ||||||
12 | B. the serviceman provides a commission or other | ||||||
13 | consideration to the person located in this State based | ||||||
14 | upon the sale of services by the serviceman. | ||||||
15 | The provisions of this paragraph 1.2 shall apply only if | ||||||
16 | the cumulative gross receipts from sales of service by the | ||||||
17 | serviceman to customers in this State under all such | ||||||
18 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
19 | periods ending on the last day of March, June, September, | ||||||
20 | and December;
| ||||||
21 | 2. soliciting orders for tangible personal property by | ||||||
22 | means of a
telecommunication or television shopping system | ||||||
23 | (which utilizes toll free
numbers) which is intended by the | ||||||
24 | retailer to be broadcast by cable
television or other means | ||||||
25 | of broadcasting, to consumers located in this State;
| ||||||
26 | 3. pursuant to a contract with a broadcaster or |
| |||||||
| |||||||
1 | publisher located in this
State, soliciting orders for | ||||||
2 | tangible personal property by means of advertising
which is | ||||||
3 | disseminated primarily to consumers located in this State | ||||||
4 | and only
secondarily to bordering jurisdictions;
| ||||||
5 | 4. soliciting orders for tangible personal property by | ||||||
6 | mail if the
solicitations are substantial and recurring and | ||||||
7 | if the retailer benefits
from any banking, financing, debt | ||||||
8 | collection, telecommunication, or
marketing activities | ||||||
9 | occurring in this State or benefits from the location
in | ||||||
10 | this State of authorized installation, servicing, or | ||||||
11 | repair facilities;
| ||||||
12 | 5. being owned or controlled by the same interests | ||||||
13 | which own or
control any retailer engaging in business in | ||||||
14 | the same or similar line of
business in this State;
| ||||||
15 | 6. having a franchisee or licensee operating under its | ||||||
16 | trade name if
the franchisee or licensee is required to | ||||||
17 | collect the tax under this Section;
| ||||||
18 | 7. pursuant to a contract with a cable television | ||||||
19 | operator located in
this State, soliciting orders for | ||||||
20 | tangible personal property by means of
advertising which is | ||||||
21 | transmitted or distributed over a cable television
system | ||||||
22 | in this State; or
| ||||||
23 | 8. engaging in activities in Illinois, which | ||||||
24 | activities in the
state in which the supply business | ||||||
25 | engaging in such activities is located
would constitute | ||||||
26 | maintaining a place of business in that state.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||||||
2 | (35 ILCS 110/3-5)
| ||||||
3 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
4 | personal property
is exempt from the tax imposed by this Act:
| ||||||
5 | (1) Personal property purchased from a corporation, | ||||||
6 | society,
association, foundation, institution, or | ||||||
7 | organization, other than a limited
liability company, that is | ||||||
8 | organized and operated as a not-for-profit service
enterprise | ||||||
9 | for the benefit of persons 65 years of age or older if the | ||||||
10 | personal
property was not purchased by the enterprise for the | ||||||
11 | purpose of resale by the
enterprise.
| ||||||
12 | (2) Personal property purchased by a non-profit Illinois | ||||||
13 | county fair
association for use in conducting, operating, or | ||||||
14 | promoting the county fair.
| ||||||
15 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
16 | cultural
organization that establishes, by proof required by | ||||||
17 | the Department by rule,
that it has received an exemption under | ||||||
18 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
19 | organized and operated primarily for the
presentation
or | ||||||
20 | support of arts or cultural programming, activities, or | ||||||
21 | services. These
organizations include, but are not limited to, | ||||||
22 | music and dramatic arts
organizations such as symphony | ||||||
23 | orchestras and theatrical groups, arts and
cultural service | ||||||
24 | organizations, local arts councils, visual arts organizations,
| ||||||
25 | and media arts organizations.
On and after the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
2 | an entity otherwise eligible for this exemption shall not
make | ||||||
3 | tax-free purchases unless it has an active identification | ||||||
4 | number issued by
the Department.
| ||||||
5 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
6 | coinage issued
by the State of Illinois, the government of the | ||||||
7 | United States of America,
or the government of any foreign | ||||||
8 | country, and bullion.
| ||||||
9 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
10 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
11 | equipment, including
repair and
replacement parts, both new and | ||||||
12 | used, and including that manufactured on
special order or | ||||||
13 | purchased for lease, certified by the purchaser to be used
| ||||||
14 | primarily for graphic arts production.
Equipment includes | ||||||
15 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
16 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
17 | immediate
change upon a graphic arts product. Beginning on July | ||||||
18 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
19 | the manufacturing and assembling machinery and equipment | ||||||
20 | exemption under Section 2 of this Act.
| ||||||
21 | (6) Personal property purchased from a teacher-sponsored | ||||||
22 | student
organization affiliated with an elementary or | ||||||
23 | secondary school located
in Illinois.
| ||||||
24 | (7) Farm machinery and equipment, both new and used, | ||||||
25 | including that
manufactured on special order, certified by the | ||||||
26 | purchaser to be used
primarily for production agriculture or |
| |||||||
| |||||||
1 | State or federal agricultural
programs, including individual | ||||||
2 | replacement parts for the machinery and
equipment, including | ||||||
3 | machinery and equipment purchased for lease,
and including | ||||||
4 | implements of husbandry defined in Section 1-130 of
the | ||||||
5 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
6 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
7 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
8 | but
excluding other motor vehicles required to be registered | ||||||
9 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
10 | hoop houses used for propagating, growing, or
overwintering | ||||||
11 | plants shall be considered farm machinery and equipment under
| ||||||
12 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
13 | shall include units sold
separately from a motor vehicle | ||||||
14 | required to be licensed and units sold mounted
on a motor | ||||||
15 | vehicle required to be licensed if the selling price of the | ||||||
16 | tender
is separately stated.
| ||||||
17 | Farm machinery and equipment shall include precision | ||||||
18 | farming equipment
that is
installed or purchased to be | ||||||
19 | installed on farm machinery and equipment
including, but not | ||||||
20 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
21 | or spreaders.
Precision farming equipment includes, but is not | ||||||
22 | limited to,
soil testing sensors, computers, monitors, | ||||||
23 | software, global positioning
and mapping systems, and other | ||||||
24 | such equipment.
| ||||||
25 | Farm machinery and equipment also includes computers, | ||||||
26 | sensors, software, and
related equipment used primarily in the
|
| |||||||
| |||||||
1 | computer-assisted operation of production agriculture | ||||||
2 | facilities, equipment,
and activities such as, but
not limited | ||||||
3 | to,
the collection, monitoring, and correlation of
animal and | ||||||
4 | crop data for the purpose of
formulating animal diets and | ||||||
5 | agricultural chemicals. This item (7) is exempt
from the | ||||||
6 | provisions of
Section 3-75.
| ||||||
7 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
8 | to or used by an air common
carrier, certified by the carrier | ||||||
9 | to be used for consumption, shipment, or
storage in the conduct | ||||||
10 | of its business as an air common carrier, for a
flight destined | ||||||
11 | for or returning from a location or locations
outside the | ||||||
12 | United States without regard to previous or subsequent domestic
| ||||||
13 | stopovers.
| ||||||
14 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
15 | or used by an air carrier, certified by the carrier to be used | ||||||
16 | for consumption, shipment, or storage in the conduct of its | ||||||
17 | business as an air common carrier, for a flight that (i) is | ||||||
18 | engaged in foreign trade or is engaged in trade between the | ||||||
19 | United States and any of its possessions and (ii) transports at | ||||||
20 | least one individual or package for hire from the city of | ||||||
21 | origination to the city of final destination on the same | ||||||
22 | aircraft, without regard to a change in the flight number of | ||||||
23 | that aircraft. | ||||||
24 | (9) Proceeds of mandatory service charges separately | ||||||
25 | stated on
customers' bills for the purchase and consumption of | ||||||
26 | food and beverages
acquired as an incident to the purchase of a |
| |||||||
| |||||||
1 | service from a serviceman, to
the extent that the proceeds of | ||||||
2 | the service charge are in fact
turned over as tips or as a | ||||||
3 | substitute for tips to the employees who
participate directly | ||||||
4 | in preparing, serving, hosting or cleaning up the
food or | ||||||
5 | beverage function with respect to which the service charge is | ||||||
6 | imposed.
| ||||||
7 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
8 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
9 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
10 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
11 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
12 | individual replacement part for oil field exploration,
| ||||||
13 | drilling, and production equipment, and (vi) machinery and | ||||||
14 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
15 | required to be registered under the Illinois
Vehicle Code.
| ||||||
16 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
17 | and
equipment, including repair and replacement parts, both new | ||||||
18 | and
used, including that manufactured on special order, | ||||||
19 | certified by the
purchaser to be used primarily for | ||||||
20 | photoprocessing, and including
photoprocessing machinery and | ||||||
21 | equipment purchased for lease.
| ||||||
22 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
23 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
24 | including
replacement parts and equipment, and including
| ||||||
25 | equipment purchased for lease, but excluding motor vehicles | ||||||
26 | required to be
registered under the Illinois Vehicle Code. The |
| |||||||
| |||||||
1 | changes made to this Section by Public Act 97-767 apply on and | ||||||
2 | after July 1, 2003, but no claim for credit or refund is | ||||||
3 | allowed on or after August 16, 2013 (the effective date of | ||||||
4 | Public Act 98-456)
for such taxes paid during the period | ||||||
5 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
6 | effective date of Public Act 98-456).
| ||||||
7 | (13) Semen used for artificial insemination of livestock | ||||||
8 | for direct
agricultural production.
| ||||||
9 | (14) Horses, or interests in horses, registered with and | ||||||
10 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
11 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
12 | Horse Association, United States
Trotting Association, or | ||||||
13 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
14 | racing for prizes. This item (14) is exempt from the provisions | ||||||
15 | of Section 3-75, and the exemption provided for under this item | ||||||
16 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
17 | claim for credit or refund is allowed on or after the effective | ||||||
18 | date of this amendatory Act of the 95th General Assembly for | ||||||
19 | such taxes paid during the period beginning May 30, 2000 and | ||||||
20 | ending on the effective date of this amendatory Act of the 95th | ||||||
21 | General Assembly.
| ||||||
22 | (15) Computers and communications equipment utilized for | ||||||
23 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
24 | analysis, or treatment of hospital patients purchased by a | ||||||
25 | lessor who leases
the
equipment, under a lease of one year or | ||||||
26 | longer executed or in effect at the
time
the lessor would |
| |||||||
| |||||||
1 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
2 | hospital
that has been issued an active tax exemption | ||||||
3 | identification number by the
Department under Section 1g of the | ||||||
4 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
5 | manner that does not qualify for
this exemption
or is used in | ||||||
6 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
7 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
8 | be, based on the fair market value of the property at the time | ||||||
9 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
10 | attempt to collect an
amount (however
designated) that purports | ||||||
11 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
| ||||||
18 | (16) Personal property purchased by a lessor who leases the
| ||||||
19 | property, under
a
lease of one year or longer executed or in | ||||||
20 | effect at the time
the lessor would otherwise be subject to the | ||||||
21 | tax imposed by this Act,
to a governmental body
that has been | ||||||
22 | issued an active tax exemption identification number by the
| ||||||
23 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
24 | Act.
If the
property is leased in a manner that does not | ||||||
25 | qualify for
this exemption
or is used in any other non-exempt | ||||||
26 | manner,
the lessor shall be liable for the
tax imposed under |
| |||||||
| |||||||
1 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
2 | fair market value of the property at the time the
| ||||||
3 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
4 | to collect an
amount (however
designated) that purports to | ||||||
5 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount | ||||||
8 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that amount
from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee for
any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
| ||||||
12 | (17) Beginning with taxable years ending on or after | ||||||
13 | December
31,
1995
and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004,
personal property that is
donated for | ||||||
15 | disaster relief to be used in a State or federally declared
| ||||||
16 | disaster area in Illinois or bordering Illinois by a | ||||||
17 | manufacturer or retailer
that is registered in this State to a | ||||||
18 | corporation, society, association,
foundation, or institution | ||||||
19 | that has been issued a sales tax exemption
identification | ||||||
20 | number by the Department that assists victims of the disaster
| ||||||
21 | who reside within the declared disaster area.
| ||||||
22 | (18) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995 and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004, personal
property that is used in the | ||||||
25 | performance of infrastructure repairs in this
State, including | ||||||
26 | but not limited to municipal roads and streets, access roads,
|
| |||||||
| |||||||
1 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
2 | line extensions,
water distribution and purification | ||||||
3 | facilities, storm water drainage and
retention facilities, and | ||||||
4 | sewage treatment facilities, resulting from a State
or | ||||||
5 | federally declared disaster in Illinois or bordering Illinois | ||||||
6 | when such
repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
9 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
10 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
11 | provisions
of
Section 3-75.
| ||||||
12 | (20) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability
company, society, association, | ||||||
15 | foundation, or institution that is determined by
the Department | ||||||
16 | to be organized and operated exclusively for educational
| ||||||
17 | purposes. For purposes of this exemption, "a corporation, | ||||||
18 | limited liability
company, society, association, foundation, | ||||||
19 | or institution organized and
operated
exclusively for | ||||||
20 | educational purposes" means all tax-supported public schools,
| ||||||
21 | private schools that offer systematic instruction in useful | ||||||
22 | branches of
learning by methods common to public schools and | ||||||
23 | that compare favorably in
their scope and intensity with the | ||||||
24 | course of study presented in tax-supported
schools, and | ||||||
25 | vocational or technical schools or institutes organized and
| ||||||
26 | operated exclusively to provide a course of study of not less |
| |||||||
| |||||||
1 | than 6 weeks
duration and designed to prepare individuals to | ||||||
2 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
3 | industrial, business, or commercial
occupation.
| ||||||
4 | (21) Beginning January 1, 2000, personal property, | ||||||
5 | including
food,
purchased through fundraising
events for the | ||||||
6 | benefit of
a public or private elementary or
secondary school, | ||||||
7 | a group of those schools, or one or more school
districts if | ||||||
8 | the events are
sponsored by an entity recognized by the school | ||||||
9 | district that consists
primarily of volunteers and includes
| ||||||
10 | parents and teachers of the school children. This paragraph | ||||||
11 | does not apply
to fundraising
events (i) for the benefit of | ||||||
12 | private home instruction or (ii)
for which the fundraising | ||||||
13 | entity purchases the personal property sold at
the events from | ||||||
14 | another individual or entity that sold the property for the
| ||||||
15 | purpose of resale by the fundraising entity and that
profits | ||||||
16 | from the sale to the
fundraising entity. This paragraph is | ||||||
17 | exempt
from the provisions
of Section 3-75.
| ||||||
18 | (22) Beginning January 1, 2000
and through December 31, | ||||||
19 | 2001, new or used automatic vending
machines that prepare and | ||||||
20 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
21 | items, and replacement parts for these machines.
Beginning | ||||||
22 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
23 | for machines used in
commercial, coin-operated
amusement
and | ||||||
24 | vending business if a use or occupation tax is paid on the | ||||||
25 | gross receipts
derived from
the use of the commercial, | ||||||
26 | coin-operated amusement and vending machines.
This
paragraph
|
| |||||||
| |||||||
1 | is exempt from the provisions of Section 3-75.
| ||||||
2 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
3 | food for human consumption that is to be consumed off the
| ||||||
4 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
5 | drinks, and food that
has been prepared for immediate | ||||||
6 | consumption) and prescription and
nonprescription medicines, | ||||||
7 | drugs, medical appliances, and insulin, urine
testing | ||||||
8 | materials, syringes, and needles used by diabetics, for human | ||||||
9 | use, when
purchased for use by a person receiving medical | ||||||
10 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
11 | resides in a licensed long-term care facility,
as defined in | ||||||
12 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
13 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
14 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
15 | (24) Beginning on the effective date of this amendatory Act | ||||||
16 | of the 92nd
General Assembly, computers and communications | ||||||
17 | equipment
utilized for any hospital purpose and equipment used | ||||||
18 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
19 | purchased by a lessor who leases
the equipment, under a lease | ||||||
20 | of one year or longer executed or in effect at the
time the | ||||||
21 | lessor would otherwise be subject to the tax imposed by this | ||||||
22 | Act, to a
hospital that has been issued an active tax exemption | ||||||
23 | identification number by
the Department under Section 1g of the | ||||||
24 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
25 | manner that does not qualify for this exemption or is
used in | ||||||
26 | any other nonexempt manner, the lessor shall be liable for the
|
| |||||||
| |||||||
1 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
2 | be, based on the
fair market value of the property at the time | ||||||
3 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
4 | attempt to collect an amount (however
designated) that purports | ||||||
5 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount | ||||||
8 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that amount
from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee for
any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
This paragraph is | ||||||
12 | exempt from the provisions of Section 3-75.
| ||||||
13 | (25) Beginning
on the effective date of this amendatory Act | ||||||
14 | of the 92nd General Assembly,
personal property purchased by a | ||||||
15 | lessor
who leases the property, under a lease of one year or | ||||||
16 | longer executed or in
effect at the time the lessor would | ||||||
17 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
18 | governmental body that has been issued an active tax exemption
| ||||||
19 | identification number by the Department under Section 1g of the | ||||||
20 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
21 | manner that does not
qualify for this exemption or is used in | ||||||
22 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
23 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
24 | be, based on the fair market value of the property at the time
| ||||||
25 | the nonqualifying use occurs. No lessor shall collect or | ||||||
26 | attempt to collect
an amount (however designated) that purports |
| |||||||
| |||||||
1 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
2 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
3 | the lessor. If a lessor improperly collects any such amount
| ||||||
4 | from the lessee, the lessee shall have a legal right to claim a | ||||||
5 | refund of that
amount from the lessor. If, however, that amount | ||||||
6 | is not refunded to the lessee
for any reason, the lessor is | ||||||
7 | liable to pay that amount to the Department.
This paragraph is | ||||||
8 | exempt from the provisions of Section 3-75.
| ||||||
9 | (26) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction or maintenance of a community water | ||||||
11 | supply, as defined under Section 3.145 of the Environmental | ||||||
12 | Protection Act, that is operated by a not-for-profit | ||||||
13 | corporation that holds a valid water supply permit issued under | ||||||
14 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
15 | exempt from the provisions of Section 3-75.
| ||||||
16 | (27) Beginning January 1, 2010, materials, parts, | ||||||
17 | equipment, components, and furnishings incorporated into or | ||||||
18 | upon an aircraft as part of the modification, refurbishment, | ||||||
19 | completion, replacement, repair, or maintenance of the | ||||||
20 | aircraft. This exemption includes consumable supplies used in | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, and maintenance of aircraft, but excludes any | ||||||
23 | materials, parts, equipment, components, and consumable | ||||||
24 | supplies used in the modification, replacement, repair, and | ||||||
25 | maintenance of aircraft engines or power plants, whether such | ||||||
26 | engines or power plants are installed or uninstalled upon any |
| |||||||
| |||||||
1 | such aircraft. "Consumable supplies" include, but are not | ||||||
2 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
3 | lubricants, cleaning solution, latex gloves, and protective | ||||||
4 | films. This exemption applies only to the use of qualifying | ||||||
5 | tangible personal property transferred incident to the | ||||||
6 | modification, refurbishment, completion, replacement, repair, | ||||||
7 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
8 | Agency Certificate and are empowered to operate an approved | ||||||
9 | repair station by the Federal Aviation Administration, (ii) | ||||||
10 | have a Class IV Rating, and (iii) conduct operations in | ||||||
11 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
12 | The exemption does not include aircraft operated by a | ||||||
13 | commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. The changes made to this | ||||||
16 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
17 | law. | ||||||
18 | (28) Tangible personal property purchased by a | ||||||
19 | public-facilities corporation, as described in Section | ||||||
20 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
21 | constructing or furnishing a municipal convention hall, but | ||||||
22 | only if the legal title to the municipal convention hall is | ||||||
23 | transferred to the municipality without any further | ||||||
24 | consideration by or on behalf of the municipality at the time | ||||||
25 | of the completion of the municipal convention hall or upon the | ||||||
26 | retirement or redemption of any bonds or other debt instruments |
| |||||||
| |||||||
1 | issued by the public-facilities corporation in connection with | ||||||
2 | the development of the municipal convention hall. This | ||||||
3 | exemption includes existing public-facilities corporations as | ||||||
4 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
5 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
6 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
7 | and menstrual cups. | ||||||
8 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
9 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
10 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
11 | Section 35-15. The Service Occupation Tax Act is amended by | ||||||
12 | changing Sections 2 and 3-5 as follows:
| ||||||
13 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
14 | Sec. 2. "Transfer" means any transfer of the title to | ||||||
15 | property or of
the ownership of property whether or not the | ||||||
16 | transferor retains title as
security for the payment of amounts | ||||||
17 | due him from the transferee.
| ||||||
18 | "Cost Price" means the consideration paid by the serviceman | ||||||
19 | for a
purchase valued in money, whether paid in money or | ||||||
20 | otherwise, including
cash, credits and services, and shall be | ||||||
21 | determined without any deduction
on account of the supplier's | ||||||
22 | cost of the property sold or on account of any
other expense | ||||||
23 | incurred by the supplier. When a serviceman contracts out
part | ||||||
24 | or all of the services required in his sale of service, it |
| |||||||
| |||||||
1 | shall be
presumed that the cost price to the serviceman of the | ||||||
2 | property
transferred to him by his or her subcontractor is | ||||||
3 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
4 | in the absence of proof of the
consideration paid by the | ||||||
5 | subcontractor for the purchase of such
property.
| ||||||
6 | "Department" means the Department of Revenue.
| ||||||
7 | "Person" means any natural individual, firm, partnership, | ||||||
8 | association, joint
stock company, joint venture, public or | ||||||
9 | private corporation, limited liability
company, and any | ||||||
10 | receiver, executor, trustee, guardian or other representative
| ||||||
11 | appointed by order of any court.
| ||||||
12 | "Sale of Service" means any transaction except:
| ||||||
13 | (a) A retail sale of tangible personal property taxable | ||||||
14 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
15 | Act.
| ||||||
16 | (b) A sale of tangible personal property for the purpose of | ||||||
17 | resale made in
compliance with Section 2c of the Retailers' | ||||||
18 | Occupation Tax Act.
| ||||||
19 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
20 | tangible personal
property as an incident to the rendering of | ||||||
21 | service for or by any governmental
body or for or by any | ||||||
22 | corporation, society, association, foundation or
institution | ||||||
23 | organized and operated exclusively for charitable, religious | ||||||
24 | or
educational purposes or any not-for-profit corporation, | ||||||
25 | society, association,
foundation, institution or organization | ||||||
26 | which has no compensated officers or
employees and which is |
| |||||||
| |||||||
1 | organized and operated primarily for the recreation of
persons | ||||||
2 | 55 years of age or older. A limited liability company may | ||||||
3 | qualify for
the exemption under this paragraph only if the | ||||||
4 | limited liability company is
organized and operated | ||||||
5 | exclusively for educational purposes.
| ||||||
6 | (d) A sale or transfer of tangible personal
property
as an | ||||||
7 | incident to the
rendering of service for interstate carriers | ||||||
8 | for hire for use as rolling stock
moving in interstate commerce | ||||||
9 | or lessors under leases of one year or longer,
executed or in | ||||||
10 | effect at the time of purchase, to interstate carriers for hire
| ||||||
11 | for use as rolling stock moving in interstate commerce, and | ||||||
12 | equipment operated
by a telecommunications provider, licensed | ||||||
13 | as a common
carrier by the Federal Communications Commission, | ||||||
14 | which is permanently
installed in or affixed to aircraft moving | ||||||
15 | in interstate commerce.
| ||||||
16 | (d-1) A sale or transfer of tangible personal
property as | ||||||
17 | an incident to
the rendering of service for owners, lessors or | ||||||
18 | shippers of tangible personal
property which is utilized by | ||||||
19 | interstate carriers for hire for use as rolling
stock moving in | ||||||
20 | interstate commerce, and equipment operated
by a | ||||||
21 | telecommunications provider, licensed as a common carrier by | ||||||
22 | the
Federal Communications Commission, which is permanently | ||||||
23 | installed in or
affixed to aircraft moving in interstate | ||||||
24 | commerce.
| ||||||
25 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
26 | 2004, a sale or transfer of a motor vehicle
of the
second |
| |||||||
| |||||||
1 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
2 | as an
incident to the rendering of service if that motor
| ||||||
3 | vehicle is subject
to the commercial distribution fee imposed | ||||||
4 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
5 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
6 | State of motor vehicles of the second division: (i) with a | ||||||
7 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
8 | that are subject to the commercial distribution fee imposed | ||||||
9 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
10 | that are primarily used for commercial purposes. Through June | ||||||
11 | 30, 2005, this exemption applies to repair and replacement | ||||||
12 | parts added after the
initial
purchase of such a motor vehicle | ||||||
13 | if that motor vehicle is used in a manner that
would
qualify | ||||||
14 | for the rolling stock exemption otherwise provided for in this | ||||||
15 | Act. For purposes of this paragraph, "used for commercial | ||||||
16 | purposes" means the transportation of persons or property in | ||||||
17 | furtherance of any commercial or industrial enterprise whether | ||||||
18 | for-hire or not.
| ||||||
19 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
20 | common carrier by
rail, of tangible personal property which | ||||||
21 | belongs to such carrier for hire, and
as to which such carrier | ||||||
22 | receives the physical possession of the repaired,
| ||||||
23 | reconditioned or remodeled item of tangible personal property | ||||||
24 | in Illinois, and
which such carrier transports, or shares with | ||||||
25 | another common carrier in the
transportation of such property, | ||||||
26 | out of Illinois on a standard uniform bill of
lading showing |
| |||||||
| |||||||
1 | the person who repaired, reconditioned or remodeled the | ||||||
2 | property
as the shipper or consignor of such property to a | ||||||
3 | destination outside Illinois,
for use outside Illinois.
| ||||||
4 | (d-3) A sale or transfer of tangible personal property | ||||||
5 | which
is produced by the seller thereof on special order in | ||||||
6 | such a way as to have
made the applicable tax the Service | ||||||
7 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
8 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
9 | carrier by rail which receives the physical possession of such | ||||||
10 | property in
Illinois, and which transports such property, or | ||||||
11 | shares with another common
carrier in the transportation of | ||||||
12 | such property, out of Illinois on a standard
uniform bill of | ||||||
13 | lading showing the seller of the property as the shipper or
| ||||||
14 | consignor of such property to a destination outside Illinois, | ||||||
15 | for use outside
Illinois.
| ||||||
16 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
17 | serviceman paying tax
under this Act to the Department, of | ||||||
18 | special order printed materials delivered
outside Illinois and | ||||||
19 | which are not returned to this State, if delivery is made
by | ||||||
20 | the seller or agent of the seller, including an agent who | ||||||
21 | causes the product
to be delivered outside Illinois by a common | ||||||
22 | carrier or the U.S.
postal service.
| ||||||
23 | (e) A sale or transfer of machinery and equipment used | ||||||
24 | primarily in
the process of the manufacturing or assembling, | ||||||
25 | either in an existing, an
expanded or a new manufacturing | ||||||
26 | facility, of tangible personal property for
wholesale or retail |
| |||||||
| |||||||
1 | sale or lease, whether such sale or lease is made directly
by | ||||||
2 | the manufacturer or by some other person, whether the materials | ||||||
3 | used in the
process are owned by the manufacturer or some other | ||||||
4 | person, or whether such
sale or lease is made apart from or as | ||||||
5 | an incident to the seller's engaging in
a service occupation | ||||||
6 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
7 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
8 | exemption provided by this paragraph (e) does not include | ||||||
9 | machinery and equipment used in (i) the generation of | ||||||
10 | electricity for wholesale or retail sale; (ii) the generation | ||||||
11 | or treatment of natural or artificial gas for wholesale or | ||||||
12 | retail sale that is delivered to customers through pipes, | ||||||
13 | pipelines, or mains; or (iii) the treatment of water for | ||||||
14 | wholesale or retail sale that is delivered to customers through | ||||||
15 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
16 | Act of the 98th General Assembly are declaratory of existing | ||||||
17 | law as to the meaning and scope of this exemption. The | ||||||
18 | exemption under this subsection (e) is exempt from the | ||||||
19 | provisions of Section 3-75.
| ||||||
20 | (f) Until July 1, 2003, the sale or transfer of | ||||||
21 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
22 | assembled or installed by the retailer, which machinery
and | ||||||
23 | equipment is certified by the user to be used only for the | ||||||
24 | production
of ethyl alcohol that will be used for consumption | ||||||
25 | as motor fuel or as a
component of motor fuel for the personal | ||||||
26 | use of such user and not subject
to sale or resale.
|
| |||||||
| |||||||
1 | (g) At the election of any serviceman not required to be | ||||||
2 | otherwise
registered as a retailer under Section 2a of the | ||||||
3 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
4 | of service in which the aggregate annual cost
price of tangible | ||||||
5 | personal property transferred as an incident to the sales of
| ||||||
6 | service is less than 35% (75% in the case of servicemen | ||||||
7 | transferring
prescription drugs or servicemen engaged in | ||||||
8 | graphic arts production) of the
aggregate annual total gross | ||||||
9 | receipts from all sales of service. The purchase
of such | ||||||
10 | tangible personal property by the serviceman shall be subject | ||||||
11 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
12 | Act.
However, if a
primary serviceman who has made the election | ||||||
13 | described in this paragraph
subcontracts service work to a | ||||||
14 | secondary serviceman who has also made the
election described | ||||||
15 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
16 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
17 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
18 | property transferred
to the primary serviceman and (ii) | ||||||
19 | certifies that fact in writing to the
primary serviceman.
| ||||||
20 | Tangible personal property transferred incident to the | ||||||
21 | completion of a
maintenance agreement is exempt from the tax | ||||||
22 | imposed pursuant to this Act.
| ||||||
23 | Exemption (e) also includes machinery and equipment used in | ||||||
24 | the
general maintenance or repair of such exempt machinery and | ||||||
25 | equipment or for
in-house manufacture of exempt machinery and | ||||||
26 | equipment.
On and after July 1, 2017, exemption (e) also
|
| |||||||
| |||||||
1 | includes graphic arts machinery and equipment, as
defined in | ||||||
2 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
3 | exemption does not include machinery and equipment used in (i) | ||||||
4 | the generation of electricity for wholesale or retail sale; | ||||||
5 | (ii) the generation or treatment of natural or artificial gas | ||||||
6 | for wholesale or retail sale that is delivered to customers | ||||||
7 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
8 | water for wholesale or retail sale that is delivered to | ||||||
9 | customers through pipes, pipelines, or mains. The provisions of | ||||||
10 | this amendatory Act of the 98th General Assembly are | ||||||
11 | declaratory of existing law as to the meaning and scope of this | ||||||
12 | exemption. For the purposes of exemption (e), each of these | ||||||
13 | terms shall have the following
meanings: (1) "manufacturing | ||||||
14 | process" shall mean the production of any
article of tangible | ||||||
15 | personal property, whether such article is a
finished product | ||||||
16 | or an article for use in the process of manufacturing
or | ||||||
17 | assembling a different article of tangible personal property, | ||||||
18 | by
procedures commonly regarded as manufacturing, processing, | ||||||
19 | fabricating,
or refining which changes some existing material | ||||||
20 | or materials into a
material with a different form, use or | ||||||
21 | name. In relation to a
recognized integrated business composed | ||||||
22 | of a series of operations which
collectively constitute | ||||||
23 | manufacturing, or individually constitute
manufacturing | ||||||
24 | operations, the manufacturing process shall be deemed to
| ||||||
25 | commence with the first operation or stage of production in the | ||||||
26 | series,
and shall not be deemed to end until the completion of |
| |||||||
| |||||||
1 | the final product
in the last operation or stage of production | ||||||
2 | in the series; and further for
purposes of exemption (e), | ||||||
3 | photoprocessing is deemed to be a manufacturing
process of | ||||||
4 | tangible personal property for wholesale or retail sale;
(2) | ||||||
5 | "assembling process" shall mean the production of any article | ||||||
6 | of
tangible personal property, whether such article is a | ||||||
7 | finished product
or an article for use in the process of | ||||||
8 | manufacturing or assembling a
different article of tangible | ||||||
9 | personal property, by the combination of
existing materials in | ||||||
10 | a manner commonly regarded as assembling which
results in a | ||||||
11 | material of a different form, use or name; (3) "machinery"
| ||||||
12 | shall mean major mechanical machines or major components of | ||||||
13 | such machines
contributing to a manufacturing or assembling | ||||||
14 | process; and (4) "equipment"
shall include any independent | ||||||
15 | device or tool separate from any machinery but
essential to an | ||||||
16 | integrated manufacturing or assembly process; including
| ||||||
17 | computers used primarily in a manufacturer's computer
assisted | ||||||
18 | design, computer assisted manufacturing (CAD/CAM) system; or | ||||||
19 | any
subunit or assembly comprising a component of any machinery | ||||||
20 | or auxiliary,
adjunct or attachment parts of machinery, such as | ||||||
21 | tools, dies, jigs, fixtures,
patterns and molds; or any parts | ||||||
22 | which require periodic replacement in the
course of normal | ||||||
23 | operation; but shall not include hand tools. Equipment
includes | ||||||
24 | chemicals or chemicals acting as catalysts but only if the | ||||||
25 | chemicals
or chemicals acting as catalysts effect a direct and | ||||||
26 | immediate change upon a
product being manufactured or assembled |
| |||||||
| |||||||
1 | for wholesale or retail sale or lease.
The purchaser of such | ||||||
2 | machinery and equipment
who has an active resale registration | ||||||
3 | number shall furnish such number to
the seller at the time of | ||||||
4 | purchase. The purchaser of such machinery and
equipment and | ||||||
5 | tools without an active resale registration number shall | ||||||
6 | furnish
to the seller a certificate of exemption for each | ||||||
7 | transaction stating facts
establishing the exemption for that | ||||||
8 | transaction, which certificate shall
be available to the | ||||||
9 | Department for inspection or audit.
| ||||||
10 | Except as provided in Section 2d of this Act, the rolling | ||||||
11 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
12 | carrier for hire, even just between points in Illinois, if such | ||||||
13 | rolling
stock transports, for hire, persons whose journeys or | ||||||
14 | property whose
shipments originate or terminate outside | ||||||
15 | Illinois.
| ||||||
16 | Any informal rulings, opinions or letters issued by the | ||||||
17 | Department in
response to an inquiry or request for any opinion | ||||||
18 | from any person
regarding the coverage and applicability of | ||||||
19 | exemption (e) to specific
devices shall be published, | ||||||
20 | maintained as a public record, and made
available for public | ||||||
21 | inspection and copying. If the informal ruling,
opinion or | ||||||
22 | letter contains trade secrets or other confidential
| ||||||
23 | information, where possible the Department shall delete such | ||||||
24 | information
prior to publication. Whenever such informal | ||||||
25 | rulings, opinions, or
letters contain any policy of general | ||||||
26 | applicability, the Department
shall formulate and adopt such |
| |||||||
| |||||||
1 | policy as a rule in accordance with the
provisions of the | ||||||
2 | Illinois Administrative Procedure Act.
| ||||||
3 | On and after July 1, 1987, no entity otherwise eligible | ||||||
4 | under exemption
(c) of this Section shall make tax free | ||||||
5 | purchases unless it has an active
exemption identification | ||||||
6 | number issued by the Department.
| ||||||
7 | "Serviceman" means any person who is engaged in the | ||||||
8 | occupation of
making sales of service.
| ||||||
9 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
10 | Retailers'
Occupation Tax Act.
| ||||||
11 | "Supplier" means any person who makes sales of tangible | ||||||
12 | personal
property to servicemen for the purpose of resale as an | ||||||
13 | incident to a
sale of service.
| ||||||
14 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
15 | (35 ILCS 115/3-5)
| ||||||
16 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
17 | property is
exempt from the tax imposed by this Act:
| ||||||
18 | (1) Personal property sold by a corporation, society, | ||||||
19 | association,
foundation, institution, or organization, other | ||||||
20 | than a limited liability
company, that is organized and | ||||||
21 | operated as a not-for-profit service enterprise
for the benefit | ||||||
22 | of persons 65 years of age or older if the personal property
| ||||||
23 | was not purchased by the enterprise for the purpose of resale | ||||||
24 | by the
enterprise.
| ||||||
25 | (2) Personal property purchased by a not-for-profit |
| |||||||
| |||||||
1 | Illinois county fair
association for use in conducting, | ||||||
2 | operating, or promoting the county fair.
| ||||||
3 | (3) Personal property purchased by any not-for-profit
arts | ||||||
4 | or cultural organization that establishes, by proof required by | ||||||
5 | the
Department by
rule, that it has received an exemption under | ||||||
6 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
7 | organized and operated primarily for the
presentation
or | ||||||
8 | support of arts or cultural programming, activities, or | ||||||
9 | services. These
organizations include, but are not limited to, | ||||||
10 | music and dramatic arts
organizations such as symphony | ||||||
11 | orchestras and theatrical groups, arts and
cultural service | ||||||
12 | organizations, local arts councils, visual arts organizations,
| ||||||
13 | and media arts organizations.
On and after the effective date | ||||||
14 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
15 | an entity otherwise eligible for this exemption shall not
make | ||||||
16 | tax-free purchases unless it has an active identification | ||||||
17 | number issued by
the Department.
| ||||||
18 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
19 | coinage
issued by the State of Illinois, the government of the | ||||||
20 | United States of
America, or the government of any foreign | ||||||
21 | country, and bullion.
| ||||||
22 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
23 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
24 | equipment, including
repair and
replacement parts, both new and | ||||||
25 | used, and including that manufactured on
special order or | ||||||
26 | purchased for lease, certified by the purchaser to be used
|
| |||||||
| |||||||
1 | primarily for graphic arts production.
Equipment includes | ||||||
2 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
3 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
4 | immediate change
upon a graphic arts product. Beginning on July | ||||||
5 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
6 | the manufacturing and assembling machinery and equipment | ||||||
7 | exemption under Section 2 of this Act.
| ||||||
8 | (6) Personal property sold by a teacher-sponsored student | ||||||
9 | organization
affiliated with an elementary or secondary school | ||||||
10 | located in Illinois.
| ||||||
11 | (7) Farm machinery and equipment, both new and used, | ||||||
12 | including that
manufactured on special order, certified by the | ||||||
13 | purchaser to be used
primarily for production agriculture or | ||||||
14 | State or federal agricultural
programs, including individual | ||||||
15 | replacement parts for the machinery and
equipment, including | ||||||
16 | machinery and equipment purchased for lease,
and including | ||||||
17 | implements of husbandry defined in Section 1-130 of
the | ||||||
18 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
19 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
20 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
21 | but
excluding other motor vehicles required to be registered | ||||||
22 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
23 | hoop houses used for propagating, growing, or
overwintering | ||||||
24 | plants shall be considered farm machinery and equipment under
| ||||||
25 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
26 | shall include units sold
separately from a motor vehicle |
| |||||||
| |||||||
1 | required to be licensed and units sold mounted
on a motor | ||||||
2 | vehicle required to be licensed if the selling price of the | ||||||
3 | tender
is separately stated.
| ||||||
4 | Farm machinery and equipment shall include precision | ||||||
5 | farming equipment
that is
installed or purchased to be | ||||||
6 | installed on farm machinery and equipment
including, but not | ||||||
7 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
8 | or spreaders.
Precision farming equipment includes, but is not | ||||||
9 | limited to,
soil testing sensors, computers, monitors, | ||||||
10 | software, global positioning
and mapping systems, and other | ||||||
11 | such equipment.
| ||||||
12 | Farm machinery and equipment also includes computers, | ||||||
13 | sensors, software, and
related equipment used primarily in the
| ||||||
14 | computer-assisted operation of production agriculture | ||||||
15 | facilities, equipment,
and activities such as, but
not limited | ||||||
16 | to,
the collection, monitoring, and correlation of
animal and | ||||||
17 | crop data for the purpose of
formulating animal diets and | ||||||
18 | agricultural chemicals. This item (7) is exempt
from the | ||||||
19 | provisions of
Section 3-55.
| ||||||
20 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
21 | to or used by an air common
carrier, certified by the carrier | ||||||
22 | to be used for consumption, shipment,
or storage in the conduct | ||||||
23 | of its business as an air common carrier, for
a flight destined | ||||||
24 | for or returning from a location or locations
outside the | ||||||
25 | United States without regard to previous or subsequent domestic
| ||||||
26 | stopovers.
|
| |||||||
| |||||||
1 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
2 | or used by an air carrier, certified by the carrier to be used | ||||||
3 | for consumption, shipment, or storage in the conduct of its | ||||||
4 | business as an air common carrier, for a flight that (i) is | ||||||
5 | engaged in foreign trade or is engaged in trade between the | ||||||
6 | United States and any of its possessions and (ii) transports at | ||||||
7 | least one individual or package for hire from the city of | ||||||
8 | origination to the city of final destination on the same | ||||||
9 | aircraft, without regard to a change in the flight number of | ||||||
10 | that aircraft. | ||||||
11 | (9) Proceeds of mandatory service charges separately
| ||||||
12 | stated on customers' bills for the purchase and consumption of | ||||||
13 | food and
beverages, to the extent that the proceeds of the | ||||||
14 | service charge are in fact
turned over as tips or as a | ||||||
15 | substitute for tips to the employees who
participate directly | ||||||
16 | in preparing, serving, hosting or cleaning up the
food or | ||||||
17 | beverage function with respect to which the service charge is | ||||||
18 | imposed.
| ||||||
19 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
20 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
21 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
22 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
23 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
24 | individual replacement part for oil field exploration,
| ||||||
25 | drilling, and production equipment, and (vi) machinery and | ||||||
26 | equipment purchased
for lease; but
excluding motor vehicles |
| |||||||
| |||||||
1 | required to be registered under the Illinois
Vehicle Code.
| ||||||
2 | (11) Photoprocessing machinery and equipment, including | ||||||
3 | repair and
replacement parts, both new and used, including that | ||||||
4 | manufactured on
special order, certified by the purchaser to be | ||||||
5 | used primarily for
photoprocessing, and including | ||||||
6 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
7 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
8 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
9 | including
replacement parts and equipment, and including
| ||||||
10 | equipment
purchased for lease, but excluding motor vehicles | ||||||
11 | required to be registered
under the Illinois Vehicle Code. The | ||||||
12 | changes made to this Section by Public Act 97-767 apply on and | ||||||
13 | after July 1, 2003, but no claim for credit or refund is | ||||||
14 | allowed on or after August 16, 2013 (the effective date of | ||||||
15 | Public Act 98-456)
for such taxes paid during the period | ||||||
16 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
17 | effective date of Public Act 98-456).
| ||||||
18 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
19 | food for human consumption that is to be consumed off the | ||||||
20 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
21 | drinks and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
non-prescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use,
when purchased for use by a person receiving medical | ||||||
26 | assistance under
Article V of the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed
long-term care facility, as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
4 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
5 | (14) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (15) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (15) is exempt from the provisions | ||||||
13 | of Section 3-55, and the exemption provided for under this item | ||||||
14 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
15 | claim for credit or refund is allowed on or after January 1, | ||||||
16 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
17 | paid during the period beginning May 30, 2000 and ending on | ||||||
18 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
19 | (16) Computers and communications equipment utilized for | ||||||
20 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
21 | analysis, or treatment of hospital patients sold to a lessor | ||||||
22 | who leases the
equipment, under a lease of one year or longer | ||||||
23 | executed or in effect at the
time of the purchase, to a
| ||||||
24 | hospital
that has been issued an active tax exemption | ||||||
25 | identification number by the
Department under Section 1g of the | ||||||
26 | Retailers' Occupation Tax Act.
|
| |||||||
| |||||||
1 | (17) Personal property sold to a lessor who leases the
| ||||||
2 | property, under a
lease of one year or longer executed or in | ||||||
3 | effect at the time of the purchase,
to a governmental body
that | ||||||
4 | has been issued an active tax exemption identification number | ||||||
5 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
6 | Tax Act.
| ||||||
7 | (18) Beginning with taxable years ending on or after | ||||||
8 | December
31, 1995
and
ending with taxable years ending on or | ||||||
9 | before December 31, 2004,
personal property that is
donated for | ||||||
10 | disaster relief to be used in a State or federally declared
| ||||||
11 | disaster area in Illinois or bordering Illinois by a | ||||||
12 | manufacturer or retailer
that is registered in this State to a | ||||||
13 | corporation, society, association,
foundation, or institution | ||||||
14 | that has been issued a sales tax exemption
identification | ||||||
15 | number by the Department that assists victims of the disaster
| ||||||
16 | who reside within the declared disaster area.
| ||||||
17 | (19) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995 and
ending with taxable years ending on or | ||||||
19 | before December 31, 2004, personal
property that is used in the | ||||||
20 | performance of infrastructure repairs in this
State, including | ||||||
21 | but not limited to municipal roads and streets, access roads,
| ||||||
22 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
23 | line extensions,
water distribution and purification | ||||||
24 | facilities, storm water drainage and
retention facilities, and | ||||||
25 | sewage treatment facilities, resulting from a State
or | ||||||
26 | federally declared disaster in Illinois or bordering Illinois |
| |||||||
| |||||||
1 | when such
repairs are initiated on facilities located in the | ||||||
2 | declared disaster area
within 6 months after the disaster.
| ||||||
3 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
4 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
5 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
6 | provisions
of
Section 3-55.
| ||||||
7 | (21) A motor vehicle, as that term is defined in Section | ||||||
8 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
9 | corporation, limited liability
company, society, association, | ||||||
10 | foundation, or institution that is determined by
the Department | ||||||
11 | to be organized and operated exclusively for educational
| ||||||
12 | purposes. For purposes of this exemption, "a corporation, | ||||||
13 | limited liability
company, society, association, foundation, | ||||||
14 | or institution organized and
operated
exclusively for | ||||||
15 | educational purposes" means all tax-supported public schools,
| ||||||
16 | private schools that offer systematic instruction in useful | ||||||
17 | branches of
learning by methods common to public schools and | ||||||
18 | that compare favorably in
their scope and intensity with the | ||||||
19 | course of study presented in tax-supported
schools, and | ||||||
20 | vocational or technical schools or institutes organized and
| ||||||
21 | operated exclusively to provide a course of study of not less | ||||||
22 | than 6 weeks
duration and designed to prepare individuals to | ||||||
23 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
24 | industrial, business, or commercial
occupation.
| ||||||
25 | (22) Beginning January 1, 2000, personal property, | ||||||
26 | including
food,
purchased through fundraising
events for the |
| |||||||
| |||||||
1 | benefit of
a public or private elementary or
secondary school, | ||||||
2 | a group of those schools, or one or more school
districts if | ||||||
3 | the events are
sponsored by an entity recognized by the school | ||||||
4 | district that consists
primarily of volunteers and includes
| ||||||
5 | parents and teachers of the school children. This paragraph | ||||||
6 | does not apply
to fundraising
events (i) for the benefit of | ||||||
7 | private home instruction or (ii)
for which the fundraising | ||||||
8 | entity purchases the personal property sold at
the events from | ||||||
9 | another individual or entity that sold the property for the
| ||||||
10 | purpose of resale by the fundraising entity and that
profits | ||||||
11 | from the sale to the
fundraising entity. This paragraph is | ||||||
12 | exempt
from the provisions
of Section 3-55.
| ||||||
13 | (23) Beginning January 1, 2000
and through December 31, | ||||||
14 | 2001, new or used automatic vending
machines that prepare and | ||||||
15 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
16 | items, and replacement parts for these machines.
Beginning | ||||||
17 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
18 | for
machines used in commercial, coin-operated amusement
and | ||||||
19 | vending business if a use or occupation tax is paid on the | ||||||
20 | gross receipts
derived from
the use of the commercial, | ||||||
21 | coin-operated amusement and vending machines.
This paragraph | ||||||
22 | is exempt from the provisions of Section 3-55.
| ||||||
23 | (24) Beginning
on the effective date of this amendatory Act | ||||||
24 | of the 92nd General Assembly,
computers and communications | ||||||
25 | equipment
utilized for any hospital purpose and equipment used | ||||||
26 | in the diagnosis,
analysis, or treatment of hospital patients |
| |||||||
| |||||||
1 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
2 | year or longer executed or in effect at the
time of the | ||||||
3 | purchase, to a hospital that has been issued an active tax
| ||||||
4 | exemption identification number by the Department under | ||||||
5 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
6 | is exempt from the provisions of
Section 3-55.
| ||||||
7 | (25) Beginning
on the effective date of this amendatory Act | ||||||
8 | of the 92nd General Assembly,
personal property sold to a | ||||||
9 | lessor who
leases the property, under a lease of one year or | ||||||
10 | longer executed or in effect
at the time of the purchase, to a | ||||||
11 | governmental body that has been issued an
active tax exemption | ||||||
12 | identification number by the Department under Section 1g
of the | ||||||
13 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
14 | the
provisions of Section 3-55.
| ||||||
15 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
16 | 2016, tangible personal property
purchased
from an Illinois | ||||||
17 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
18 | activities in Illinois who will, upon receipt of the property | ||||||
19 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
20 | the purpose of subsequently
transporting it outside this State | ||||||
21 | for use or consumption thereafter solely
outside this State or | ||||||
22 | (ii) for the purpose of being processed, fabricated, or
| ||||||
23 | manufactured into, attached to, or incorporated into other | ||||||
24 | tangible personal
property to be transported outside this State | ||||||
25 | and thereafter used or consumed
solely outside this State. The | ||||||
26 | Director of Revenue shall, pursuant to rules
adopted in |
| |||||||
| |||||||
1 | accordance with the Illinois Administrative Procedure Act, | ||||||
2 | issue a
permit to any taxpayer in good standing with the | ||||||
3 | Department who is eligible for
the exemption under this | ||||||
4 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
5 | shall authorize the holder, to the extent and
in the manner | ||||||
6 | specified in the rules adopted under this Act, to purchase
| ||||||
7 | tangible personal property from a retailer exempt from the | ||||||
8 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
9 | necessary books and records to
substantiate the use and | ||||||
10 | consumption of all such tangible personal property
outside of | ||||||
11 | the State of Illinois.
| ||||||
12 | (27) Beginning January 1, 2008, tangible personal property | ||||||
13 | used in the construction or maintenance of a community water | ||||||
14 | supply, as defined under Section 3.145 of the Environmental | ||||||
15 | Protection Act, that is operated by a not-for-profit | ||||||
16 | corporation that holds a valid water supply permit issued under | ||||||
17 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 3-55.
| ||||||
19 | (28) Tangible personal property sold to a | ||||||
20 | public-facilities corporation, as described in Section | ||||||
21 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
22 | constructing or furnishing a municipal convention hall, but | ||||||
23 | only if the legal title to the municipal convention hall is | ||||||
24 | transferred to the municipality without any further | ||||||
25 | consideration by or on behalf of the municipality at the time | ||||||
26 | of the completion of the municipal convention hall or upon the |
| |||||||
| |||||||
1 | retirement or redemption of any bonds or other debt instruments | ||||||
2 | issued by the public-facilities corporation in connection with | ||||||
3 | the development of the municipal convention hall. This | ||||||
4 | exemption includes existing public-facilities corporations as | ||||||
5 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
6 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
7 | (29) Beginning January 1, 2010, materials, parts, | ||||||
8 | equipment, components, and furnishings incorporated into or | ||||||
9 | upon an aircraft as part of the modification, refurbishment, | ||||||
10 | completion, replacement, repair, or maintenance of the | ||||||
11 | aircraft. This exemption includes consumable supplies used in | ||||||
12 | the modification, refurbishment, completion, replacement, | ||||||
13 | repair, and maintenance of aircraft, but excludes any | ||||||
14 | materials, parts, equipment, components, and consumable | ||||||
15 | supplies used in the modification, replacement, repair, and | ||||||
16 | maintenance of aircraft engines or power plants, whether such | ||||||
17 | engines or power plants are installed or uninstalled upon any | ||||||
18 | such aircraft. "Consumable supplies" include, but are not | ||||||
19 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
20 | lubricants, cleaning solution, latex gloves, and protective | ||||||
21 | films. This exemption applies only to the transfer of | ||||||
22 | qualifying tangible personal property incident to the | ||||||
23 | modification, refurbishment, completion, replacement, repair, | ||||||
24 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
25 | Agency Certificate and are empowered to operate an approved | ||||||
26 | repair station by the Federal Aviation Administration, (ii) |
| |||||||
| |||||||
1 | have a Class IV Rating, and (iii) conduct operations in | ||||||
2 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
3 | The exemption does not include aircraft operated by a | ||||||
4 | commercial air carrier providing scheduled passenger air | ||||||
5 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
6 | of the Federal Aviation Regulations. The changes made to this | ||||||
7 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
8 | law. | ||||||
9 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
10 | and menstrual cups. | ||||||
11 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
12 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
13 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
14 | Section 35-20. The Retailers' Occupation Tax Act is amended | ||||||
15 | by changing Sections 2-5 and 2-45 as follows:
| ||||||
16 | (35 ILCS 120/2-5)
| ||||||
17 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
18 | sale of
the following tangible personal property are exempt | ||||||
19 | from the tax imposed
by this Act:
| ||||||
20 | (1) Farm chemicals.
| ||||||
21 | (2) Farm machinery and equipment, both new and used, | ||||||
22 | including that
manufactured on special order, certified by the | ||||||
23 | purchaser to be used
primarily for production agriculture or | ||||||
24 | State or federal agricultural
programs, including individual |
| |||||||
| |||||||
1 | replacement parts for the machinery and
equipment, including | ||||||
2 | machinery and equipment purchased for lease,
and including | ||||||
3 | implements of husbandry defined in Section 1-130 of
the | ||||||
4 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
5 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
6 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
7 | but
excluding other motor vehicles required to be registered | ||||||
8 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
9 | hoop houses used for propagating, growing, or
overwintering | ||||||
10 | plants shall be considered farm machinery and equipment under
| ||||||
11 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
12 | shall include units sold
separately from a motor vehicle | ||||||
13 | required to be licensed and units sold mounted
on a motor | ||||||
14 | vehicle required to be licensed, if the selling price of the | ||||||
15 | tender
is separately stated.
| ||||||
16 | Farm machinery and equipment shall include precision | ||||||
17 | farming equipment
that is
installed or purchased to be | ||||||
18 | installed on farm machinery and equipment
including, but not | ||||||
19 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
20 | or spreaders.
Precision farming equipment includes, but is not | ||||||
21 | limited to,
soil testing sensors, computers, monitors, | ||||||
22 | software, global positioning
and mapping systems, and other | ||||||
23 | such equipment.
| ||||||
24 | Farm machinery and equipment also includes computers, | ||||||
25 | sensors, software, and
related equipment used primarily in the
| ||||||
26 | computer-assisted operation of production agriculture |
| |||||||
| |||||||
1 | facilities, equipment,
and activities such as, but
not limited | ||||||
2 | to,
the collection, monitoring, and correlation of
animal and | ||||||
3 | crop data for the purpose of
formulating animal diets and | ||||||
4 | agricultural chemicals. This item (2) is exempt
from the | ||||||
5 | provisions of
Section 2-70.
| ||||||
6 | (3) Until July 1, 2003, distillation machinery and | ||||||
7 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
8 | retailer, certified by the user to be used
only for the | ||||||
9 | production of ethyl alcohol that will be used for consumption
| ||||||
10 | as motor fuel or as a component of motor fuel for the personal | ||||||
11 | use of the
user, and not subject to sale or resale.
| ||||||
12 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
13 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
14 | equipment, including
repair and
replacement parts, both new and | ||||||
15 | used, and including that manufactured on
special order or | ||||||
16 | purchased for lease, certified by the purchaser to be used
| ||||||
17 | primarily for graphic arts production.
Equipment includes | ||||||
18 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
19 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
20 | immediate
change upon a
graphic arts product. Beginning on July | ||||||
21 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
22 | the manufacturing and assembling machinery and equipment | ||||||
23 | exemption under paragraph (14).
| ||||||
24 | (5) A motor vehicle that is used for automobile renting, as | ||||||
25 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
26 | This paragraph is exempt from
the provisions of Section 2-70.
|
| |||||||
| |||||||
1 | (6) Personal property sold by a teacher-sponsored student | ||||||
2 | organization
affiliated with an elementary or secondary school | ||||||
3 | located in Illinois.
| ||||||
4 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
5 | selling price of
a passenger car the
sale of which is subject | ||||||
6 | to the Replacement Vehicle Tax.
| ||||||
7 | (8) Personal property sold to an Illinois county fair | ||||||
8 | association for
use in conducting, operating, or promoting the | ||||||
9 | county fair.
| ||||||
10 | (9) Personal property sold to a not-for-profit arts
or | ||||||
11 | cultural organization that establishes, by proof required by | ||||||
12 | the Department
by
rule, that it has received an exemption under | ||||||
13 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
14 | organized and operated primarily for the
presentation
or | ||||||
15 | support of arts or cultural programming, activities, or | ||||||
16 | services. These
organizations include, but are not limited to, | ||||||
17 | music and dramatic arts
organizations such as symphony | ||||||
18 | orchestras and theatrical groups, arts and
cultural service | ||||||
19 | organizations, local arts councils, visual arts organizations,
| ||||||
20 | and media arts organizations.
On and after the effective date | ||||||
21 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
22 | an entity otherwise eligible for this exemption shall not
make | ||||||
23 | tax-free purchases unless it has an active identification | ||||||
24 | number issued by
the Department.
| ||||||
25 | (10) Personal property sold by a corporation, society, | ||||||
26 | association,
foundation, institution, or organization, other |
| |||||||
| |||||||
1 | than a limited liability
company, that is organized and | ||||||
2 | operated as a not-for-profit service enterprise
for the benefit | ||||||
3 | of persons 65 years of age or older if the personal property
| ||||||
4 | was not purchased by the enterprise for the purpose of resale | ||||||
5 | by the
enterprise.
| ||||||
6 | (11) Personal property sold to a governmental body, to a | ||||||
7 | corporation,
society, association, foundation, or institution | ||||||
8 | organized and operated
exclusively for charitable, religious, | ||||||
9 | or educational purposes, or to a
not-for-profit corporation, | ||||||
10 | society, association, foundation, institution,
or organization | ||||||
11 | that has no compensated officers or employees and that is
| ||||||
12 | organized and operated primarily for the recreation of persons | ||||||
13 | 55 years of
age or older. A limited liability company may | ||||||
14 | qualify for the exemption under
this paragraph only if the | ||||||
15 | limited liability company is organized and operated
| ||||||
16 | exclusively for educational purposes. On and after July 1, | ||||||
17 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
18 | shall make tax-free purchases
unless it has an active | ||||||
19 | identification number issued by the Department.
| ||||||
20 | (12) Tangible personal property sold to
interstate | ||||||
21 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
22 | commerce or to lessors under leases of
one year or longer | ||||||
23 | executed or in effect at the time of purchase by
interstate | ||||||
24 | carriers for hire for use as rolling stock moving in interstate
| ||||||
25 | commerce and equipment operated by a telecommunications | ||||||
26 | provider, licensed as a
common carrier by the Federal |
| |||||||
| |||||||
1 | Communications Commission, which is permanently
installed in | ||||||
2 | or affixed to aircraft moving in interstate commerce.
| ||||||
3 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
4 | motor vehicles of the second division
with a gross vehicle | ||||||
5 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
6 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
7 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
8 | through June 30, 2005, the use in this State of motor vehicles | ||||||
9 | of the second division: (i) with a gross vehicle weight rating | ||||||
10 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
11 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
12 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
13 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
14 | applies to repair and replacement parts added
after the
initial | ||||||
15 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
16 | in a
manner that
would qualify for the rolling stock exemption | ||||||
17 | otherwise provided for in this
Act. For purposes of this | ||||||
18 | paragraph, "used for commercial purposes" means the | ||||||
19 | transportation of persons or property in furtherance of any | ||||||
20 | commercial or industrial enterprise whether for-hire or not.
| ||||||
21 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
22 | tangible personal property that is utilized by interstate | ||||||
23 | carriers for
hire for use as rolling stock moving in interstate | ||||||
24 | commerce
and equipment operated by a telecommunications | ||||||
25 | provider, licensed as a
common carrier by the Federal | ||||||
26 | Communications Commission, which is
permanently installed in |
| |||||||
| |||||||
1 | or affixed to aircraft moving in interstate commerce.
| ||||||
2 | (14) Machinery and equipment that will be used by the | ||||||
3 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
4 | process of manufacturing or
assembling tangible personal | ||||||
5 | property for wholesale or retail sale or
lease, whether the | ||||||
6 | sale or lease is made directly by the manufacturer or by
some | ||||||
7 | other person, whether the materials used in the process are | ||||||
8 | owned by
the manufacturer or some other person, or whether the | ||||||
9 | sale or lease is made
apart from or as an incident to the | ||||||
10 | seller's engaging in the service
occupation of producing | ||||||
11 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
12 | items of no commercial value on special order for a particular
| ||||||
13 | purchaser. The exemption provided by this paragraph (14) does | ||||||
14 | not include machinery and equipment used in (i) the generation | ||||||
15 | of electricity for wholesale or retail sale; (ii) the | ||||||
16 | generation or treatment of natural or artificial gas for | ||||||
17 | wholesale or retail sale that is delivered to customers through | ||||||
18 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
19 | wholesale or retail sale that is delivered to customers through | ||||||
20 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
21 | are declaratory of existing law as to the meaning and scope of | ||||||
22 | this exemption. Beginning on July 1, 2017, the exemption | ||||||
23 | provided by this paragraph (14) includes, but is not limited | ||||||
24 | to, graphic arts machinery and equipment, as defined in | ||||||
25 | paragraph (4) of this Section.
| ||||||
26 | (15) Proceeds of mandatory service charges separately |
| |||||||
| |||||||
1 | stated on
customers' bills for purchase and consumption of food | ||||||
2 | and beverages, to the
extent that the proceeds of the service | ||||||
3 | charge are in fact turned over as
tips or as a substitute for | ||||||
4 | tips to the employees who participate directly
in preparing, | ||||||
5 | serving, hosting or cleaning up the food or beverage function
| ||||||
6 | with respect to which the service charge is imposed.
| ||||||
7 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
8 | is prohibited by federal law from charging tax to the | ||||||
9 | purchaser.
| ||||||
10 | (17) Tangible personal property sold to a common carrier by | ||||||
11 | rail or
motor that
receives the physical possession of the | ||||||
12 | property in Illinois and that
transports the property, or | ||||||
13 | shares with another common carrier in the
transportation of the | ||||||
14 | property, out of Illinois on a standard uniform bill
of lading | ||||||
15 | showing the seller of the property as the shipper or consignor | ||||||
16 | of
the property to a destination outside Illinois, for use | ||||||
17 | outside Illinois.
| ||||||
18 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
19 | coinage
issued by the State of Illinois, the government of the | ||||||
20 | United States of
America, or the government of any foreign | ||||||
21 | country, and bullion.
| ||||||
22 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
23 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
24 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
25 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
26 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
| |||||||
| |||||||
1 | individual replacement part for oil field exploration,
| ||||||
2 | drilling, and production equipment, and (vi) machinery and | ||||||
3 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
4 | required to be registered under the Illinois
Vehicle Code.
| ||||||
5 | (20) Photoprocessing machinery and equipment, including | ||||||
6 | repair and
replacement parts, both new and used, including that | ||||||
7 | manufactured on
special order, certified by the purchaser to be | ||||||
8 | used primarily for
photoprocessing, and including | ||||||
9 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
10 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
11 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
12 | including
replacement parts and equipment, and including
| ||||||
13 | equipment purchased for lease, but excluding motor vehicles | ||||||
14 | required to be
registered under the Illinois Vehicle Code. The | ||||||
15 | changes made to this Section by Public Act 97-767 apply on and | ||||||
16 | after July 1, 2003, but no claim for credit or refund is | ||||||
17 | allowed on or after August 16, 2013 (the effective date of | ||||||
18 | Public Act 98-456)
for such taxes paid during the period | ||||||
19 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
20 | effective date of Public Act 98-456).
| ||||||
21 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
22 | to or used by an air carrier,
certified by the carrier to be | ||||||
23 | used for consumption, shipment, or storage
in the conduct of | ||||||
24 | its business as an air common carrier, for a flight
destined | ||||||
25 | for or returning from a location or locations
outside the | ||||||
26 | United States without regard to previous or subsequent domestic
|
| |||||||
| |||||||
1 | stopovers.
| ||||||
2 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
3 | or used by an air carrier, certified by the carrier to be used | ||||||
4 | for consumption, shipment, or storage in the conduct of its | ||||||
5 | business as an air common carrier, for a flight that (i) is | ||||||
6 | engaged in foreign trade or is engaged in trade between the | ||||||
7 | United States and any of its possessions and (ii) transports at | ||||||
8 | least one individual or package for hire from the city of | ||||||
9 | origination to the city of final destination on the same | ||||||
10 | aircraft, without regard to a change in the flight number of | ||||||
11 | that aircraft. | ||||||
12 | (23) A transaction in which the purchase order is received | ||||||
13 | by a florist
who is located outside Illinois, but who has a | ||||||
14 | florist located in Illinois
deliver the property to the | ||||||
15 | purchaser or the purchaser's donee in Illinois.
| ||||||
16 | (24) Fuel consumed or used in the operation of ships, | ||||||
17 | barges, or vessels
that are used primarily in or for the | ||||||
18 | transportation of property or the
conveyance of persons for | ||||||
19 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
20 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
21 | it is afloat upon that bordering river.
| ||||||
22 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
23 | motor vehicle sold in this State to a nonresident even though | ||||||
24 | the
motor vehicle is delivered to the nonresident in this | ||||||
25 | State, if the motor
vehicle is not to be titled in this State, | ||||||
26 | and if a drive-away permit
is issued to the motor vehicle as |
| |||||||
| |||||||
1 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
2 | the nonresident purchaser has vehicle registration
plates to | ||||||
3 | transfer to the motor vehicle upon returning to his or her home
| ||||||
4 | state. The issuance of the drive-away permit or having
the
| ||||||
5 | out-of-state registration plates to be transferred is prima | ||||||
6 | facie evidence
that the motor vehicle will not be titled in | ||||||
7 | this State.
| ||||||
8 | (25-5) The exemption under item (25) does not apply if the | ||||||
9 | state in which the motor vehicle will be titled does not allow | ||||||
10 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
11 | in that state to an Illinois resident but titled in Illinois. | ||||||
12 | The tax collected under this Act on the sale of a motor vehicle | ||||||
13 | in this State to a resident of another state that does not | ||||||
14 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
15 | to the state's rate of tax on taxable property in the state in | ||||||
16 | which the purchaser is a resident, except that the tax shall | ||||||
17 | not exceed the tax that would otherwise be imposed under this | ||||||
18 | Act. At the time of the sale, the purchaser shall execute a | ||||||
19 | statement, signed under penalty of perjury, of his or her | ||||||
20 | intent to title the vehicle in the state in which the purchaser | ||||||
21 | is a resident within 30 days after the sale and of the fact of | ||||||
22 | the payment to the State of Illinois of tax in an amount | ||||||
23 | equivalent to the state's rate of tax on taxable property in | ||||||
24 | his or her state of residence and shall submit the statement to | ||||||
25 | the appropriate tax collection agency in his or her state of | ||||||
26 | residence. In addition, the retailer must retain a signed copy |
| |||||||
| |||||||
1 | of the statement in his or her records. Nothing in this item | ||||||
2 | shall be construed to require the removal of the vehicle from | ||||||
3 | this state following the filing of an intent to title the | ||||||
4 | vehicle in the purchaser's state of residence if the purchaser | ||||||
5 | titles the vehicle in his or her state of residence within 30 | ||||||
6 | days after the date of sale. The tax collected under this Act | ||||||
7 | in accordance with this item (25-5) shall be proportionately | ||||||
8 | distributed as if the tax were collected at the 6.25% general | ||||||
9 | rate imposed under this Act.
| ||||||
10 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
11 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
12 | the Illinois Aeronautics Act, if all of the following | ||||||
13 | conditions are met: | ||||||
14 | (1) the aircraft leaves this State within 15 days after | ||||||
15 | the later of either the issuance of the final billing for | ||||||
16 | the sale of the aircraft, or the authorized approval for | ||||||
17 | return to service, completion of the maintenance record | ||||||
18 | entry, and completion of the test flight and ground test | ||||||
19 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
20 | (2) the aircraft is not based or registered in this | ||||||
21 | State after the sale of the aircraft; and | ||||||
22 | (3) the seller retains in his or her books and records | ||||||
23 | and provides to the Department a signed and dated | ||||||
24 | certification from the purchaser, on a form prescribed by | ||||||
25 | the Department, certifying that the requirements of this | ||||||
26 | item (25-7) are met. The certificate must also include the |
| |||||||
| |||||||
1 | name and address of the purchaser, the address of the | ||||||
2 | location where the aircraft is to be titled or registered, | ||||||
3 | the address of the primary physical location of the | ||||||
4 | aircraft, and other information that the Department may | ||||||
5 | reasonably require. | ||||||
6 | For purposes of this item (25-7): | ||||||
7 | "Based in this State" means hangared, stored, or otherwise | ||||||
8 | used, excluding post-sale customizations as defined in this | ||||||
9 | Section, for 10 or more days in each 12-month period | ||||||
10 | immediately following the date of the sale of the aircraft. | ||||||
11 | "Registered in this State" means an aircraft registered | ||||||
12 | with the Department of Transportation, Aeronautics Division, | ||||||
13 | or titled or registered with the Federal Aviation | ||||||
14 | Administration to an address located in this State. | ||||||
15 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
16 | Section 2-70.
| ||||||
17 | (26) Semen used for artificial insemination of livestock | ||||||
18 | for direct
agricultural production.
| ||||||
19 | (27) Horses, or interests in horses, registered with and | ||||||
20 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
21 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
22 | Horse Association, United States
Trotting Association, or | ||||||
23 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
24 | racing for prizes. This item (27) is exempt from the provisions | ||||||
25 | of Section 2-70, and the exemption provided for under this item | ||||||
26 | (27) applies for all periods beginning May 30, 1995, but no |
| |||||||
| |||||||
1 | claim for credit or refund is allowed on or after January 1, | ||||||
2 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
3 | paid during the period beginning May 30, 2000 and ending on | ||||||
4 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
5 | (28) Computers and communications equipment utilized for | ||||||
6 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
7 | analysis, or treatment of hospital patients sold to a lessor | ||||||
8 | who leases the
equipment, under a lease of one year or longer | ||||||
9 | executed or in effect at the
time of the purchase, to a
| ||||||
10 | hospital
that has been issued an active tax exemption | ||||||
11 | identification number by the
Department under Section 1g of | ||||||
12 | this Act.
| ||||||
13 | (29) Personal property sold to a lessor who leases the
| ||||||
14 | property, under a
lease of one year or longer executed or in | ||||||
15 | effect at the time of the purchase,
to a governmental body
that | ||||||
16 | has been issued an active tax exemption identification number | ||||||
17 | by the
Department under Section 1g of this Act.
| ||||||
18 | (30) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (31) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
15 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
16 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
17 | provisions
of
Section 2-70.
| ||||||
18 | (33) A motor vehicle, as that term is defined in Section | ||||||
19 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
20 | corporation, limited liability
company, society, association, | ||||||
21 | foundation, or institution that is determined by
the Department | ||||||
22 | to be organized and operated exclusively for educational
| ||||||
23 | purposes. For purposes of this exemption, "a corporation, | ||||||
24 | limited liability
company, society, association, foundation, | ||||||
25 | or institution organized and
operated
exclusively for | ||||||
26 | educational purposes" means all tax-supported public schools,
|
| |||||||
| |||||||
1 | private schools that offer systematic instruction in useful | ||||||
2 | branches of
learning by methods common to public schools and | ||||||
3 | that compare favorably in
their scope and intensity with the | ||||||
4 | course of study presented in tax-supported
schools, and | ||||||
5 | vocational or technical schools or institutes organized and
| ||||||
6 | operated exclusively to provide a course of study of not less | ||||||
7 | than 6 weeks
duration and designed to prepare individuals to | ||||||
8 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
9 | industrial, business, or commercial
occupation.
| ||||||
10 | (34) Beginning January 1, 2000, personal property, | ||||||
11 | including food, purchased
through fundraising events for the | ||||||
12 | benefit of a public or private elementary or
secondary school, | ||||||
13 | a group of those schools, or one or more school districts if
| ||||||
14 | the events are sponsored by an entity recognized by the school | ||||||
15 | district that
consists primarily of volunteers and includes | ||||||
16 | parents and teachers of the
school children. This paragraph | ||||||
17 | does not apply to fundraising events (i) for
the benefit of | ||||||
18 | private home instruction or (ii) for which the fundraising
| ||||||
19 | entity purchases the personal property sold at the events from | ||||||
20 | another
individual or entity that sold the property for the | ||||||
21 | purpose of resale by the
fundraising entity and that profits | ||||||
22 | from the sale to the fundraising entity.
This paragraph is | ||||||
23 | exempt from the provisions of Section 2-70.
| ||||||
24 | (35) Beginning January 1, 2000 and through December 31, | ||||||
25 | 2001, new or used
automatic vending machines that prepare and | ||||||
26 | serve hot food and beverages,
including coffee, soup, and other |
| |||||||
| |||||||
1 | items, and replacement parts for these
machines. Beginning | ||||||
2 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
3 | for machines used in
commercial, coin-operated amusement and | ||||||
4 | vending business if a use or occupation
tax is paid on the | ||||||
5 | gross receipts derived from the use of the commercial,
| ||||||
6 | coin-operated amusement and vending machines. This paragraph | ||||||
7 | is exempt from
the provisions of Section 2-70.
| ||||||
8 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
9 | food for human consumption that is to be consumed off
the | ||||||
10 | premises where it is sold (other than alcoholic beverages, soft | ||||||
11 | drinks,
and food that has been prepared for immediate | ||||||
12 | consumption) and prescription
and nonprescription medicines, | ||||||
13 | drugs, medical appliances, and insulin, urine
testing | ||||||
14 | materials, syringes, and needles used by diabetics, for human | ||||||
15 | use, when
purchased for use by a person receiving medical | ||||||
16 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
17 | resides in a licensed long-term care facility,
as defined in | ||||||
18 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
19 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
20 | Mental Health Rehabilitation Act of 2013.
| ||||||
21 | (36) Beginning August 2, 2001, computers and | ||||||
22 | communications equipment
utilized for any hospital purpose and | ||||||
23 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
24 | hospital patients sold to a lessor who leases the
equipment, | ||||||
25 | under a lease of one year or longer executed or in effect at | ||||||
26 | the
time of the purchase, to a hospital that has been issued an |
| |||||||
| |||||||
1 | active tax
exemption identification number by the Department | ||||||
2 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
3 | provisions of Section 2-70.
| ||||||
4 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
5 | lessor who
leases the property, under a lease of one year or | ||||||
6 | longer executed or in effect
at the time of the purchase, to a | ||||||
7 | governmental body that has been issued an
active tax exemption | ||||||
8 | identification number by the Department under Section 1g
of | ||||||
9 | this Act. This paragraph is exempt from the provisions of | ||||||
10 | Section 2-70.
| ||||||
11 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
12 | 2016, tangible personal property purchased
from an Illinois | ||||||
13 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
14 | activities in Illinois who will, upon receipt of the property | ||||||
15 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
16 | the purpose of subsequently
transporting it outside this State | ||||||
17 | for use or consumption thereafter solely
outside this State or | ||||||
18 | (ii) for the purpose of being processed, fabricated, or
| ||||||
19 | manufactured into, attached to, or incorporated into other | ||||||
20 | tangible personal
property to be transported outside this State | ||||||
21 | and thereafter used or consumed
solely outside this State. The | ||||||
22 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
23 | accordance with the Illinois Administrative Procedure Act, | ||||||
24 | issue a
permit to any taxpayer in good standing with the | ||||||
25 | Department who is eligible for
the exemption under this | ||||||
26 | paragraph (38). The permit issued under
this paragraph (38) |
| |||||||
| |||||||
1 | shall authorize the holder, to the extent and
in the manner | ||||||
2 | specified in the rules adopted under this Act, to purchase
| ||||||
3 | tangible personal property from a retailer exempt from the | ||||||
4 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
5 | necessary books and records to
substantiate the use and | ||||||
6 | consumption of all such tangible personal property
outside of | ||||||
7 | the State of Illinois.
| ||||||
8 | (39) Beginning January 1, 2008, tangible personal property | ||||||
9 | used in the construction or maintenance of a community water | ||||||
10 | supply, as defined under Section 3.145 of the Environmental | ||||||
11 | Protection Act, that is operated by a not-for-profit | ||||||
12 | corporation that holds a valid water supply permit issued under | ||||||
13 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
14 | exempt from the provisions of Section 2-70.
| ||||||
15 | (40) Beginning January 1, 2010, materials, parts, | ||||||
16 | equipment, components, and furnishings incorporated into or | ||||||
17 | upon an aircraft as part of the modification, refurbishment, | ||||||
18 | completion, replacement, repair, or maintenance of the | ||||||
19 | aircraft. This exemption includes consumable supplies used in | ||||||
20 | the modification, refurbishment, completion, replacement, | ||||||
21 | repair, and maintenance of aircraft, but excludes any | ||||||
22 | materials, parts, equipment, components, and consumable | ||||||
23 | supplies used in the modification, replacement, repair, and | ||||||
24 | maintenance of aircraft engines or power plants, whether such | ||||||
25 | engines or power plants are installed or uninstalled upon any | ||||||
26 | such aircraft. "Consumable supplies" include, but are not |
| |||||||
| |||||||
1 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
2 | lubricants, cleaning solution, latex gloves, and protective | ||||||
3 | films. This exemption applies only to the sale of qualifying | ||||||
4 | tangible personal property to persons who modify, refurbish, | ||||||
5 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
6 | Air Agency Certificate and are empowered to operate an approved | ||||||
7 | repair station by the Federal Aviation Administration, (ii) | ||||||
8 | have a Class IV Rating, and (iii) conduct operations in | ||||||
9 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
10 | The exemption does not include aircraft operated by a | ||||||
11 | commercial air carrier providing scheduled passenger air | ||||||
12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
13 | of the Federal Aviation Regulations. The changes made to this | ||||||
14 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
15 | law. | ||||||
16 | (41) Tangible personal property sold to a | ||||||
17 | public-facilities corporation, as described in Section | ||||||
18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
19 | constructing or furnishing a municipal convention hall, but | ||||||
20 | only if the legal title to the municipal convention hall is | ||||||
21 | transferred to the municipality without any further | ||||||
22 | consideration by or on behalf of the municipality at the time | ||||||
23 | of the completion of the municipal convention hall or upon the | ||||||
24 | retirement or redemption of any bonds or other debt instruments | ||||||
25 | issued by the public-facilities corporation in connection with | ||||||
26 | the development of the municipal convention hall. This |
| |||||||
| |||||||
1 | exemption includes existing public-facilities corporations as | ||||||
2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
3 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
4 | (42) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
5 | and menstrual cups. | ||||||
6 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
7 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
8 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
9 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
10 | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||||||
11 | Sec. 2-45. Manufacturing and assembly exemption. The | ||||||
12 | manufacturing
and assembly machinery and equipment exemption | ||||||
13 | includes machinery
and equipment that replaces machinery
and | ||||||
14 | equipment in an existing manufacturing facility as well as | ||||||
15 | machinery
and equipment that are for use in an expanded or new
| ||||||
16 | manufacturing facility.
| ||||||
17 | The machinery and equipment exemption also includes | ||||||
18 | machinery
and equipment used in the
general maintenance or | ||||||
19 | repair of exempt machinery and equipment or for
in-house | ||||||
20 | manufacture of exempt machinery and equipment.
Beginning on | ||||||
21 | July 1, 2017, the manufacturing and assembling machinery and | ||||||
22 | equipment exemption also includes graphic arts machinery and | ||||||
23 | equipment, as defined in paragraph (4) of Section 2-5. The | ||||||
24 | machinery and equipment exemption does not include machinery | ||||||
25 | and equipment used in (i) the generation of electricity for |
| |||||||
| |||||||
1 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
2 | natural or artificial gas for wholesale or retail sale that is | ||||||
3 | delivered to customers through pipes, pipelines, or mains; or | ||||||
4 | (iii) the treatment of water for wholesale or retail sale that | ||||||
5 | is delivered to customers through pipes, pipelines, or mains. | ||||||
6 | The provisions of this amendatory Act of the 98th General | ||||||
7 | Assembly are declaratory of existing law as to the meaning and | ||||||
8 | scope of this exemption. For the purposes of this exemption, | ||||||
9 | terms have the following meanings:
| ||||||
10 | (1) "Manufacturing process" means the production of an | ||||||
11 | article of
tangible personal property, whether the article | ||||||
12 | is a finished product or an
article for use in the process | ||||||
13 | of manufacturing or assembling a different
article of | ||||||
14 | tangible personal property, by a procedure commonly | ||||||
15 | regarded as
manufacturing, processing, fabricating, or | ||||||
16 | refining that changes some
existing material or materials | ||||||
17 | into a material with a different form, use,
or name. In | ||||||
18 | relation to a recognized integrated business composed of a
| ||||||
19 | series of operations that collectively constitute | ||||||
20 | manufacturing, or
individually constitute manufacturing | ||||||
21 | operations, the manufacturing process
commences with the | ||||||
22 | first operation or stage of production in the series and
| ||||||
23 | does not end until the completion of the final product in | ||||||
24 | the last
operation or stage of production in the series. | ||||||
25 | For purposes of this
exemption, photoprocessing is a | ||||||
26 | manufacturing process of tangible personal
property for |
| |||||||
| |||||||
1 | wholesale or retail sale.
| ||||||
2 | (2) "Assembling process" means the production of an | ||||||
3 | article of
tangible personal property, whether the article | ||||||
4 | is a finished product or an
article for use in the process | ||||||
5 | of manufacturing or assembling a different
article of | ||||||
6 | tangible personal property, by the combination of existing
| ||||||
7 | materials in a manner commonly regarded as assembling that | ||||||
8 | results in a
material of a different form, use, or name.
| ||||||
9 | (3) "Machinery" means major mechanical machines or | ||||||
10 | major components of
those machines contributing to a | ||||||
11 | manufacturing or assembling process.
| ||||||
12 | (4) "Equipment" includes an independent device or tool | ||||||
13 | separate from
machinery but essential to an integrated | ||||||
14 | manufacturing or assembly process;
including computers | ||||||
15 | used primarily in a manufacturer's computer assisted | ||||||
16 | design, computer assisted manufacturing
(CAD/CAM) system; | ||||||
17 | any subunit or assembly comprising a component of any
| ||||||
18 | machinery or auxiliary, adjunct, or attachment parts of | ||||||
19 | machinery, such as
tools, dies, jigs, fixtures, patterns, | ||||||
20 | and molds; and any parts that
require periodic replacement | ||||||
21 | in the course of normal operation; but does
not include | ||||||
22 | hand tools. Equipment includes chemicals or chemicals | ||||||
23 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
24 | acting as catalysts effect a direct and
immediate change | ||||||
25 | upon a
product being manufactured or assembled for | ||||||
26 | wholesale or retail sale or
lease.
|
| |||||||
| |||||||
1 | (5) "Production related tangible personal property" | ||||||
2 | means all tangible personal property that is used or | ||||||
3 | consumed by the purchaser in a manufacturing facility in | ||||||
4 | which a manufacturing process takes place and includes, | ||||||
5 | without limitation, tangible personal property that is | ||||||
6 | purchased for incorporation into real estate within a | ||||||
7 | manufacturing facility and tangible personal property that | ||||||
8 | is used or consumed in activities such as research and | ||||||
9 | development, preproduction material handling, receiving, | ||||||
10 | quality control, inventory control, storage, staging, and | ||||||
11 | packaging for shipping and transportation purposes. | ||||||
12 | "Production related tangible personal property" does not | ||||||
13 | include (i) tangible personal property that is used, within | ||||||
14 | or without a manufacturing facility, in sales, purchasing, | ||||||
15 | accounting, fiscal management, marketing, personnel | ||||||
16 | recruitment or selection, or landscaping or (ii) tangible | ||||||
17 | personal property that is required to be titled or | ||||||
18 | registered with a department, agency, or unit of federal, | ||||||
19 | State, or local government.
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20 | The manufacturing and assembling machinery and equipment | ||||||
21 | exemption includes production related tangible personal | ||||||
22 | property that is purchased on or after July 1, 2007 and on or | ||||||
23 | before June 30, 2008. The exemption for production related | ||||||
24 | tangible personal property is subject to both of the following | ||||||
25 | limitations: | ||||||
26 | (1) The maximum amount of the exemption for any one |
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1 | taxpayer may not exceed 5% of the purchase price of | ||||||
2 | production related tangible personal property that is | ||||||
3 | purchased on or after July 1, 2007 and on or before June | ||||||
4 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
5 | be earned by the purchase of production related tangible | ||||||
6 | personal property for which an exemption is received under | ||||||
7 | this Section. | ||||||
8 | (2) The maximum aggregate amount of the exemptions for | ||||||
9 | production related tangible personal property awarded | ||||||
10 | under this Act and the Use
Tax Act to all taxpayers may not | ||||||
11 | exceed $10,000,000. If the claims for the exemption exceed | ||||||
12 | $10,000,000, then the Department shall reduce the amount of | ||||||
13 | the exemption to each taxpayer on a pro rata basis. | ||||||
14 | The Department may adopt rules to implement and administer the | ||||||
15 | exemption for production related tangible personal property. | ||||||
16 | The manufacturing and assembling machinery and equipment | ||||||
17 | exemption
includes the sale of materials to a purchaser who | ||||||
18 | produces exempted types
of machinery, equipment, or tools and | ||||||
19 | who rents or leases that machinery,
equipment, or tools to a | ||||||
20 | manufacturer of tangible personal property. This
exemption | ||||||
21 | also includes the sale of materials to a purchaser who | ||||||
22 | manufactures
those materials into an exempted type of | ||||||
23 | machinery, equipment, or tools
that the purchaser uses himself | ||||||
24 | or herself in the manufacturing of tangible
personal property. | ||||||
25 | The purchaser of the machinery and equipment who has an
active | ||||||
26 | resale registration number shall furnish that number to the |
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1 | seller
at the time of purchase. A purchaser of the machinery, | ||||||
2 | equipment, and
tools without an active resale registration | ||||||
3 | number shall furnish to the
seller a certificate of exemption | ||||||
4 | for each transaction stating facts
establishing the exemption | ||||||
5 | for that transaction, and that certificate shall
be available | ||||||
6 | to the Department for inspection or audit. Informal
rulings, | ||||||
7 | opinions, or letters issued by the Department in response to an
| ||||||
8 | inquiry or request for an opinion from any person regarding the | ||||||
9 | coverage and
applicability of this exemption to specific | ||||||
10 | devices shall be published,
maintained as a public record,
and | ||||||
11 | made available for public inspection and copying. If the | ||||||
12 | informal
ruling, opinion, or letter contains trade secrets or | ||||||
13 | other confidential
information, where possible, the Department | ||||||
14 | shall delete that information
before publication. Whenever | ||||||
15 | informal rulings, opinions, or letters
contain a policy of | ||||||
16 | general applicability, the Department shall
formulate and | ||||||
17 | adopt that policy as a rule in accordance with the Illinois
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18 | Administrative Procedure Act.
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19 | The manufacturing and assembling machinery and equipment
| ||||||
20 | exemption is exempt from the provisions of Section 2-70. | ||||||
21 | (Source: P.A. 98-583, eff. 1-1-14.)
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22 | ARTICLE 99. EFFECTIVE DATE
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23 | Section 99-999. Effective date. This Act takes effect upon | ||||||
24 | becoming law, except that Articles 1, 15, 17, and 25 take | ||||||
25 | effect on January 1, 2018.
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