Bill Text: IL SB1285 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Corporate Accountability for Tax Expenditures Act. Provides that the Unified Economic Development Budget shall be due within 6 months (instead of 3 months) after the end of the fiscal year. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. For the purposes of mandatory payments by electronic funds transfer, provides that the annual tax liability includes motor fuel tax liability and fees under the Environmental Impact Fee law. Amends the Illinois Income Tax Act. Makes changes concerning deposits into the Income Tax Refund Fund, the Fund for the Advancement of Education, and the Commitment to Human Services Fund. Amends the Property Tax Code to allow the Department of Revenue to publish equalization factors on its website. Amends the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, and the Use Tax Act to make technical corrections. Amends various tax Acts to provide that, if a payment provided for under one of those Acts exceeds the taxpayer's liability under that Act, then the taxpayer may credit the excess payment against liability subsequently to be remitted to the Department of Revenue. Amends the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 and the Energy Assistance Act to incorporate certain provisions of the Retailers' Occupation Tax Act. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed) 2017-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB1285 Detail]

Download: Illinois-2017-SB1285-Engrossed.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Renewable Energy, Energy Efficiency, and
5Coal Resources Development Law of 1997 is amended by changing
6Section 6-5 and by adding Section 6-8 as follows:
7 (20 ILCS 687/6-5)
8 (Section scheduled to be repealed on December 31, 2020)
9 Sec. 6-5. Renewable Energy Resources and Coal Technology
10Development Assistance Charge.
11 (a) Notwithstanding the provisions of Section 16-111 of the
12Public Utilities Act but subject to subsection (e) of this
13Section, each public utility, electric cooperative, as defined
14in Section 3.4 of the Electric Supplier Act, and municipal
15utility, as referenced in Section 3-105 of the Public Utilities
16Act, that is engaged in the delivery of electricity or the
17distribution of natural gas within the State of Illinois shall,
18effective January 1, 1998, assess each of its customer accounts
19a monthly Renewable Energy Resources and Coal Technology
20Development Assistance Charge. The delivering public utility,
21municipal electric or gas utility, or electric or gas
22cooperative for a self-assessing purchaser remains subject to
23the collection of the fee imposed by this Section. The monthly

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1charge shall be as follows:
2 (1) $0.05 per month on each account for residential
3 electric service as defined in Section 13 of the Energy
4 Assistance Act;
5 (2) $0.05 per month on each account for residential gas
6 service as defined in Section 13 of the Energy Assistance
7 Act;
8 (3) $0.50 per month on each account for nonresidential
9 electric service, as defined in Section 13 of the Energy
10 Assistance Act, which had less than 10 megawatts of peak
11 demand during the previous calendar year;
12 (4) $0.50 per month on each account for nonresidential
13 gas service, as defined in Section 13 of the Energy
14 Assistance Act, which had distributed to it less than
15 4,000,000 therms of gas during the previous calendar year;
16 (5) $37.50 per month on each account for nonresidential
17 electric service, as defined in Section 13 of the Energy
18 Assistance Act, which had 10 megawatts or greater of peak
19 demand during the previous calendar year; and
20 (6) $37.50 per month on each account for nonresidential
21 gas service, as defined in Section 13 of the Energy
22 Assistance Act, which had 4,000,000 or more therms of gas
23 distributed to it during the previous calendar year.
24 (b) The Renewable Energy Resources and Coal Technology
25Development Assistance Charge assessed by electric and gas
26public utilities shall be considered a charge for public

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1utility service.
2 (c) Fifty percent of the moneys collected pursuant to this
3Section shall be deposited in the Renewable Energy Resources
4Trust Fund by the Department of Revenue. The remaining 50
5percent of the moneys collected pursuant to this Section shall
6be deposited in the Coal Technology Development Assistance Fund
7by the Department of Revenue for the exclusive purposes of (1)
8capturing or sequestering carbon emissions produced by coal
9combustion; (2) supporting research on the capture and
10sequestration of carbon emissions produced by coal combustion;
11and (3) improving coal miner safety.
12 (d) By the 20th day of the month following the month in
13which the charges imposed by this Section were collected, each
14utility and alternative retail electric supplier collecting
15charges pursuant to this Section shall remit to the Department
16of Revenue for deposit in the Renewable Energy Resources Trust
17Fund and the Coal Technology Development Assistance Fund all
18moneys received as payment of the charge provided for in this
19Section on a return prescribed and furnished by the Department
20of Revenue showing such information as the Department of
21Revenue may reasonably require.
22 If any payment provided for in this Section exceeds the
23utility or alternative retail electric supplier's liabilities
24under this Act, as shown on an original return, the utility or
25alternative retail electric supplier may credit the excess
26payment against liability subsequently to be remitted to the

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1Department of Revenue under this Act.
2 (e) The charges imposed by this Section shall only apply to
3customers of municipal electric or gas utilities and electric
4or gas cooperatives if the municipal electric or gas utility or
5electric or gas cooperative makes an affirmative decision to
6impose the charge. If a municipal electric or gas utility or an
7electric or gas cooperative makes an affirmative decision to
8impose the charge provided by this Section, the municipal
9electric or gas utility or electric or gas cooperative shall
10inform the Department of Revenue in writing of such decision
11when it begins to impose the charge. If a municipal electric or
12gas utility or electric or gas cooperative does not assess this
13charge, its customers shall not be eligible for the Renewable
14Energy Resources Program.
15 (f) The Department of Revenue may establish such rules as
16it deems necessary to implement this Section.
17(Source: P.A. 95-481, eff. 8-28-07.)
18 (20 ILCS 687/6-8 new)
19 Sec. 6-8. Application of Retailers' Occupation Tax
20provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,
215d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
22and 13 of the Retailers' Occupation Tax Act that are not
23inconsistent with this Act apply, as far as practicable, to the
24surcharge imposed by this Act to the same extent as if those
25provisions were included in this Act. References in the

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1incorporated Sections of the Retailers' Occupation Tax Act to
2retailers, to sellers, or to persons engaged in the business of
3selling tangible personal property mean persons required to
4remit the charge imposed under this Act.
5 Section 10. The Corporate Accountability for Tax
6Expenditures Act is amended by changing Section 10 as follows:
7 (20 ILCS 715/10)
8 Sec. 10. Unified Economic Development Budget.
9 (a) For each State fiscal year ending on or after June 30,
102005, the Department of Revenue shall submit an annual Unified
11Economic Development Budget to the General Assembly. The
12Unified Economic Development Budget shall be due within 6 3
13months after the end of the fiscal year, and shall present all
14types of development assistance granted during the prior fiscal
15year, including:
16 (1) The aggregate amount of uncollected or diverted
17 State tax revenues resulting from each type of development
18 assistance provided in the tax statutes, as reported to the
19 Department of Revenue on tax returns filed during the
20 fiscal year.
21 (2) All State development assistance.
22 (b) All data contained in the Unified Economic Development
23Budget presented to the General Assembly shall be fully subject
24to the Freedom of Information Act.

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1 (c) The Department of Revenue shall submit a report of the
2amounts in subdivision (a)(1) of this Section to the
3Department, which may append such report to the Unified
4Economic Development Budget rather than separately reporting
5such amounts.
6(Source: P.A. 93-552, eff. 8-20-03.)
7 Section 15. The Department of Revenue Law of the Civil
8Administrative Code of Illinois is amended by changing Section
92505-210 as follows:
10 (20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)
11 Sec. 2505-210. Electronic funds transfer.
12 (a) The Department may provide means by which persons
13having a tax liability under any Act administered by the
14Department may use electronic funds transfer to pay the tax
15liability.
16 (b) Mandatory payment by electronic funds transfer.
17Beginning on October 1, 2002, and through September 30, 2010, a
18taxpayer who has an annual tax liability of $200,000 or more
19shall make all payments of that tax to the Department by
20electronic funds transfer. Beginning October 1, 2010, a
21taxpayer (other than an individual taxpayer) who has an annual
22tax liability of $20,000 or more and an individual taxpayer who
23has an annual tax liability of $200,000 or more shall make all
24payments of that tax to the Department by electronic funds

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1transfer. Before August 1 of each year, beginning in 2002, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1. For purposes
6of this subsection (b), the term "annual tax liability" means,
7except as provided in subsections (c) and (d) of this Section,
8the sum of the taxpayer's liabilities under a tax Act
9administered by the Department, except the Motor Fuel Tax Law
10and the Environmental Impact Fee Law, for the immediately
11preceding calendar year.
12 (c) For purposes of subsection (b), the term "annual tax
13liability" means, for a taxpayer that incurs a tax liability
14under the Retailers' Occupation Tax Act, Service Occupation Tax
15Act, Use Tax Act, Service Use Tax Act, or any other State or
16local occupation or use tax law that is administered by the
17Department, the sum of the taxpayer's liabilities under the
18Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
19Tax Act, Service Use Tax Act, and all other State and local
20occupation and use tax laws administered by the Department for
21the immediately preceding calendar year.
22 (d) For purposes of subsection (b), the term "annual tax
23liability" means, for a taxpayer that incurs an Illinois income
24tax liability, the greater of:
25 (1) the amount of the taxpayer's tax liability under
26 Article 7 of the Illinois Income Tax Act for the

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1 immediately preceding calendar year; or
2 (2) the taxpayer's estimated tax payment obligation
3 under Article 8 of the Illinois Income Tax Act for the
4 immediately preceding calendar year.
5 (e) The Department shall adopt such rules as are necessary
6to effectuate a program of electronic funds transfer and the
7requirements of this Section.
8(Source: P.A. 96-1027, eff. 7-12-10.)
9 Section 20. The State Finance Act is amended by changing
10Section 6z-18 as follows:
11 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
12 Sec. 6z-18. Local Government Tax Fund. A portion of the
13money paid into the Local Government Tax Fund from sales of
14tangible personal property taxed at the 1% rate under the
15Retailers' Occupation Tax Act and the Service Occupation Tax
16Act, including but not limited to food for human consumption
17that which is to be consumed off the premises where it is sold
18(other than alcoholic beverages, soft drinks and food that
19which has been prepared for immediate consumption) and
20prescription and nonprescription medicines, drugs, medical
21appliances, products classified as Class III medical devices by
22the United States Food and Drug Administration that are used
23for cancer treatment pursuant to a prescription, as well as any
24accessories and components related to those devices,

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1modifications to a motor vehicle for the purpose of rendering
2it usable by a person with a disability, and insulin, urine
3testing materials, syringes and needles used by diabetics, for
4human use, which occurred in municipalities, shall be
5distributed to each municipality based upon the sales which
6occurred in that municipality. The remainder shall be
7distributed to each county based upon the sales which occurred
8in the unincorporated area of that county.
9 A portion of the money paid into the Local Government Tax
10Fund from the 6.25% general use tax rate on the selling price
11of tangible personal property which is purchased outside
12Illinois at retail from a retailer and which is titled or
13registered by any agency of this State's government shall be
14distributed to municipalities as provided in this paragraph.
15Each municipality shall receive the amount attributable to
16sales for which Illinois addresses for titling or registration
17purposes are given as being in such municipality. The remainder
18of the money paid into the Local Government Tax Fund from such
19sales shall be distributed to counties. Each county shall
20receive the amount attributable to sales for which Illinois
21addresses for titling or registration purposes are given as
22being located in the unincorporated area of such county.
23 A portion of the money paid into the Local Government Tax
24Fund from the 6.25% general rate (and, beginning July 1, 2000
25and through December 31, 2000, the 1.25% rate on motor fuel and
26gasohol, and beginning on August 6, 2010 through August 15,

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12010, the 1.25% rate on sales tax holiday items) on sales
2subject to taxation under the Retailers' Occupation Tax Act and
3the Service Occupation Tax Act, which occurred in
4municipalities, shall be distributed to each municipality,
5based upon the sales which occurred in that municipality. The
6remainder shall be distributed to each county, based upon the
7sales which occurred in the unincorporated area of such county.
8 For the purpose of determining allocation to the local
9government unit, a retail sale by a producer of coal or other
10mineral mined in Illinois is a sale at retail at the place
11where the coal or other mineral mined in Illinois is extracted
12from the earth. This paragraph does not apply to coal or other
13mineral when it is delivered or shipped by the seller to the
14purchaser at a point outside Illinois so that the sale is
15exempt under the United States Constitution as a sale in
16interstate or foreign commerce.
17 Whenever the Department determines that a refund of money
18paid into the Local Government Tax Fund should be made to a
19claimant instead of issuing a credit memorandum, the Department
20shall notify the State Comptroller, who shall cause the order
21to be drawn for the amount specified, and to the person named,
22in such notification from the Department. Such refund shall be
23paid by the State Treasurer out of the Local Government Tax
24Fund.
25 As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the Department

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1of Revenue, the Comptroller shall order transferred, and the
2Treasurer shall transfer, to the STAR Bonds Revenue Fund the
3local sales tax increment, as defined in the Innovation
4Development and Economy Act, collected during the second
5preceding calendar month for sales within a STAR bond district
6and deposited into the Local Government Tax Fund, less 3% of
7that amount, which shall be transferred into the Tax Compliance
8and Administration Fund and shall be used by the Department,
9subject to appropriation, to cover the costs of the Department
10in administering the Innovation Development and Economy Act.
11 After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities
15and counties, the municipalities and counties to be those
16entitled to distribution of taxes or penalties paid to the
17Department during the second preceding calendar month. The
18amount to be paid to each municipality or county shall be the
19amount (not including credit memoranda) collected during the
20second preceding calendar month by the Department and paid into
21the Local Government Tax Fund, plus an amount the Department
22determines is necessary to offset any amounts which were
23erroneously paid to a different taxing body, and not including
24an amount equal to the amount of refunds made during the second
25preceding calendar month by the Department, and not including
26any amount which the Department determines is necessary to

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1offset any amounts which are payable to a different taxing body
2but were erroneously paid to the municipality or county, and
3not including any amounts that are transferred to the STAR
4Bonds Revenue Fund. Within 10 days after receipt, by the
5Comptroller, of the disbursement certification to the
6municipalities and counties, provided for in this Section to be
7given to the Comptroller by the Department, the Comptroller
8shall cause the orders to be drawn for the respective amounts
9in accordance with the directions contained in such
10certification.
11 When certifying the amount of monthly disbursement to a
12municipality or county under this Section, the Department shall
13increase or decrease that amount by an amount necessary to
14offset any misallocation of previous disbursements. The offset
15amount shall be the amount erroneously disbursed within the 6
16months preceding the time a misallocation is discovered.
17 The provisions directing the distributions from the
18special fund in the State Treasury provided for in this Section
19shall constitute an irrevocable and continuing appropriation
20of all amounts as provided herein. The State Treasurer and
21State Comptroller are hereby authorized to make distributions
22as provided in this Section.
23 In construing any development, redevelopment, annexation,
24preannexation or other lawful agreement in effect prior to
25September 1, 1990, which describes or refers to receipts from a
26county or municipal retailers' occupation tax, use tax or

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1service occupation tax which now cannot be imposed, such
2description or reference shall be deemed to include the
3replacement revenue for such abolished taxes, distributed from
4the Local Government Tax Fund.
5 As soon as possible after the effective date of this
6amendatory Act of the 98th General Assembly, the State
7Comptroller shall order and the State Treasurer shall transfer
8$6,600,000 from the Local Government Tax Fund to the Illinois
9State Medical Disciplinary Fund.
10(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
11 Section 25. The Illinois Income Tax Act is amended by
12changing Section 901 as follows:
13 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
14 Sec. 901. Collection authority.
15 (a) In general.
16 The Department shall collect the taxes imposed by this Act.
17The Department shall collect certified past due child support
18amounts under Section 2505-650 of the Department of Revenue Law
19(20 ILCS 2505/2505-650). Except as provided in subsections (c)
20and , (e), (f), (g), and (h) of this Section, money collected
21pursuant to subsections (a) and (b) of Section 201 of this Act
22shall be paid into the General Revenue Fund in the State
23treasury; money collected pursuant to subsections (c) and (d)
24of Section 201 of this Act shall be paid into the Personal

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1Property Tax Replacement Fund, a special fund in the State
2Treasury; and money collected under Section 2505-650 of the
3Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
4into the Child Support Enforcement Trust Fund, a special fund
5outside the State Treasury, or to the State Disbursement Unit
6established under Section 10-26 of the Illinois Public Aid
7Code, as directed by the Department of Healthcare and Family
8Services.
9 (b) Local Government Distributive Fund.
10 Beginning August 1, 1969, and continuing through June 30,
111994, the Treasurer shall transfer each month from the General
12Revenue Fund to a special fund in the State treasury, to be
13known as the "Local Government Distributive Fund", an amount
14equal to 1/12 of the net revenue realized from the tax imposed
15by subsections (a) and (b) of Section 201 of this Act during
16the preceding month. Beginning July 1, 1994, and continuing
17through June 30, 1995, the Treasurer shall transfer each month
18from the General Revenue Fund to the Local Government
19Distributive Fund an amount equal to 1/11 of the net revenue
20realized from the tax imposed by subsections (a) and (b) of
21Section 201 of this Act during the preceding month. Beginning
22July 1, 1995 and continuing through January 31, 2011, the
23Treasurer shall transfer each month from the General Revenue
24Fund to the Local Government Distributive Fund an amount equal
25to the net of (i) 1/10 of the net revenue realized from the tax
26imposed by subsections (a) and (b) of Section 201 of the

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1Illinois Income Tax Act during the preceding month (ii) minus,
2beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
3and beginning July 1, 2004, zero. Beginning February 1, 2011,
4and continuing through January 31, 2015, the Treasurer shall
5transfer each month from the General Revenue Fund to the Local
6Government Distributive Fund an amount equal to the sum of (i)
76% (10% of the ratio of the 3% individual income tax rate prior
8to 2011 to the 5% individual income tax rate after 2010) of the
9net revenue realized from the tax imposed by subsections (a)
10and (b) of Section 201 of this Act upon individuals, trusts,
11and estates during the preceding month and (ii) 6.86% (10% of
12the ratio of the 4.8% corporate income tax rate prior to 2011
13to the 7% corporate income tax rate after 2010) of the net
14revenue realized from the tax imposed by subsections (a) and
15(b) of Section 201 of this Act upon corporations during the
16preceding month. Beginning February 1, 2015 and continuing
17through January 31, 2025, the Treasurer shall transfer each
18month from the General Revenue Fund to the Local Government
19Distributive Fund an amount equal to the sum of (i) 8% (10% of
20the ratio of the 3% individual income tax rate prior to 2011 to
21the 3.75% individual income tax rate after 2014) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon individuals, trusts, and
24estates during the preceding month and (ii) 9.14% (10% of the
25ratio of the 4.8% corporate income tax rate prior to 2011 to
26the 5.25% corporate income tax rate after 2014) of the net

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1revenue realized from the tax imposed by subsections (a) and
2(b) of Section 201 of this Act upon corporations during the
3preceding month. Beginning February 1, 2025, the Treasurer
4shall transfer each month from the General Revenue Fund to the
5Local Government Distributive Fund an amount equal to the sum
6of (i) 9.23% (10% of the ratio of the 3% individual income tax
7rate prior to 2011 to the 3.25% individual income tax rate
8after 2024) of the net revenue realized from the tax imposed by
9subsections (a) and (b) of Section 201 of this Act upon
10individuals, trusts, and estates during the preceding month and
11(ii) 10% of the net revenue realized from the tax imposed by
12subsections (a) and (b) of Section 201 of this Act upon
13corporations during the preceding month. Net revenue realized
14for a month shall be defined as the revenue from the tax
15imposed by subsections (a) and (b) of Section 201 of this Act
16which is deposited in the General Revenue Fund, the Education
17Assistance Fund, the Income Tax Surcharge Local Government
18Distributive Fund, the Fund for the Advancement of Education,
19and the Commitment to Human Services Fund during the month
20minus the amount paid out of the General Revenue Fund in State
21warrants during that same month as refunds to taxpayers for
22overpayment of liability under the tax imposed by subsections
23(a) and (b) of Section 201 of this Act.
24 Beginning on August 26, 2014 (the effective date of Public
25Act 98-1052), the Comptroller shall perform the transfers
26required by this subsection (b) no later than 60 days after he

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1or she receives the certification from the Treasurer as
2provided in Section 1 of the State Revenue Sharing Act.
3 (c) Deposits Into Income Tax Refund Fund.
4 (1) Beginning on January 1, 1989 and thereafter, the
5 Department shall deposit a percentage of the amounts
6 collected pursuant to subsections (a) and (b)(1), (2), and
7 (3), of Section 201 of this Act into a fund in the State
8 treasury known as the Income Tax Refund Fund. The
9 Department shall deposit 6% of such amounts during the
10 period beginning January 1, 1989 and ending on June 30,
11 1989. Beginning with State fiscal year 1990 and for each
12 fiscal year thereafter, the percentage deposited into the
13 Income Tax Refund Fund during a fiscal year shall be the
14 Annual Percentage. For fiscal years 1999 through 2001, the
15 Annual Percentage shall be 7.1%. For fiscal year 2003, the
16 Annual Percentage shall be 8%. For fiscal year 2004, the
17 Annual Percentage shall be 11.7%. Upon the effective date
18 of this amendatory Act of the 93rd General Assembly, the
19 Annual Percentage shall be 10% for fiscal year 2005. For
20 fiscal year 2006, the Annual Percentage shall be 9.75%. For
21 fiscal year 2007, the Annual Percentage shall be 9.75%. For
22 fiscal year 2008, the Annual Percentage shall be 7.75%. For
23 fiscal year 2009, the Annual Percentage shall be 9.75%. For
24 fiscal year 2010, the Annual Percentage shall be 9.75%. For
25 fiscal year 2011, the Annual Percentage shall be 8.75%. For
26 fiscal year 2012, the Annual Percentage shall be 8.75%. For

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1 fiscal year 2013, the Annual Percentage shall be 9.75%. For
2 fiscal year 2014, the Annual Percentage shall be 9.5%. For
3 fiscal year 2015, the Annual Percentage shall be 10%. For
4 all other fiscal years, the Annual Percentage shall be
5 calculated as a fraction, the numerator of which shall be
6 the amount of refunds approved for payment by the
7 Department during the preceding fiscal year as a result of
8 overpayment of tax liability under subsections (a) and
9 (b)(1), (2), and (3) of Section 201 of this Act plus the
10 amount of such refunds remaining approved but unpaid at the
11 end of the preceding fiscal year, minus the amounts
12 transferred into the Income Tax Refund Fund from the
13 Tobacco Settlement Recovery Fund, and the denominator of
14 which shall be the amounts which will be collected pursuant
15 to subsections (a) and (b)(1), (2), and (3) of Section 201
16 of this Act during the preceding fiscal year; except that
17 in State fiscal year 2002, the Annual Percentage shall in
18 no event exceed 7.6%. The Director of Revenue shall certify
19 the Annual Percentage to the Comptroller on the last
20 business day of the fiscal year immediately preceding the
21 fiscal year for which it is to be effective.
22 (2) Beginning on January 1, 1989 and thereafter, the
23 Department shall deposit a percentage of the amounts
24 collected pursuant to subsections (a) and (b)(6), (7), and
25 (8), (c) and (d) of Section 201 of this Act into a fund in
26 the State treasury known as the Income Tax Refund Fund. The

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1 Department shall deposit 18% of such amounts during the
2 period beginning January 1, 1989 and ending on June 30,
3 1989. Beginning with State fiscal year 1990 and for each
4 fiscal year thereafter, the percentage deposited into the
5 Income Tax Refund Fund during a fiscal year shall be the
6 Annual Percentage. For fiscal years 1999, 2000, and 2001,
7 the Annual Percentage shall be 19%. For fiscal year 2003,
8 the Annual Percentage shall be 27%. For fiscal year 2004,
9 the Annual Percentage shall be 32%. Upon the effective date
10 of this amendatory Act of the 93rd General Assembly, the
11 Annual Percentage shall be 24% for fiscal year 2005. For
12 fiscal year 2006, the Annual Percentage shall be 20%. For
13 fiscal year 2007, the Annual Percentage shall be 17.5%. For
14 fiscal year 2008, the Annual Percentage shall be 15.5%. For
15 fiscal year 2009, the Annual Percentage shall be 17.5%. For
16 fiscal year 2010, the Annual Percentage shall be 17.5%. For
17 fiscal year 2011, the Annual Percentage shall be 17.5%. For
18 fiscal year 2012, the Annual Percentage shall be 17.5%. For
19 fiscal year 2013, the Annual Percentage shall be 14%. For
20 fiscal year 2014, the Annual Percentage shall be 13.4%. For
21 fiscal year 2015, the Annual Percentage shall be 14%. For
22 all other fiscal years, the Annual Percentage shall be
23 calculated as a fraction, the numerator of which shall be
24 the amount of refunds approved for payment by the
25 Department during the preceding fiscal year as a result of
26 overpayment of tax liability under subsections (a) and

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1 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
2 Act plus the amount of such refunds remaining approved but
3 unpaid at the end of the preceding fiscal year, and the
4 denominator of which shall be the amounts which will be
5 collected pursuant to subsections (a) and (b)(6), (7), and
6 (8), (c) and (d) of Section 201 of this Act during the
7 preceding fiscal year; except that in State fiscal year
8 2002, the Annual Percentage shall in no event exceed 23%.
9 The Director of Revenue shall certify the Annual Percentage
10 to the Comptroller on the last business day of the fiscal
11 year immediately preceding the fiscal year for which it is
12 to be effective.
13 (3) The Comptroller shall order transferred and the
14 Treasurer shall transfer from the Tobacco Settlement
15 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
16 in January, 2001, (ii) $35,000,000 in January, 2002, and
17 (iii) $35,000,000 in January, 2003.
18 (d) Expenditures from Income Tax Refund Fund.
19 (1) Beginning January 1, 1989, money in the Income Tax
20 Refund Fund shall be expended exclusively for the purpose
21 of paying refunds resulting from overpayment of tax
22 liability under Section 201 of this Act, for paying rebates
23 under Section 208.1 in the event that the amounts in the
24 Homeowners' Tax Relief Fund are insufficient for that
25 purpose, and for making transfers pursuant to this
26 subsection (d).

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1 (2) The Director shall order payment of refunds
2 resulting from overpayment of tax liability under Section
3 201 of this Act from the Income Tax Refund Fund only to the
4 extent that amounts collected pursuant to Section 201 of
5 this Act and transfers pursuant to this subsection (d) and
6 item (3) of subsection (c) have been deposited and retained
7 in the Fund.
8 (3) As soon as possible after the end of each fiscal
9 year, the Director shall order transferred and the State
10 Treasurer and State Comptroller shall transfer from the
11 Income Tax Refund Fund to the Personal Property Tax
12 Replacement Fund an amount, certified by the Director to
13 the Comptroller, equal to the excess of the amount
14 collected pursuant to subsections (c) and (d) of Section
15 201 of this Act deposited into the Income Tax Refund Fund
16 during the fiscal year over the sum of the amount of
17 refunds resulting from overpayment of tax liability under
18 subsections (c) and (d) of Section 201 of this Act paid
19 from the Income Tax Refund Fund during the fiscal year plus
20 the amount of such refund claims received but neither paid
21 nor denied as of the end of the fiscal year.
22 (4) As soon as possible after the end of each fiscal
23 year, the Director shall order transferred and the State
24 Treasurer and State Comptroller shall transfer from the
25 Personal Property Tax Replacement Fund to the Income Tax
26 Refund Fund an amount, certified by the Director to the

SB1285 Engrossed- 22 -LRB100 08067 HLH 18153 b
1 Comptroller, equal to the excess of the sum of the amount
2 of refunds resulting from overpayment of tax liability
3 under subsections (c) and (d) of Section 201 of this Act
4 paid from the Income Tax Refund Fund during the fiscal year
5 plus the amount of such refund claims received but neither
6 paid nor denied as of the end of the fiscal year over the
7 amount collected pursuant to subsections (c) and (d) of
8 Section 201 of this Act deposited into the Income Tax
9 Refund Fund during the fiscal year.
10 (4.5) As soon as possible after the end of fiscal year
11 1999 and of each fiscal year thereafter, the Director shall
12 order transferred and the State Treasurer and State
13 Comptroller shall transfer from the Income Tax Refund Fund
14 to the General Revenue Fund any surplus remaining in the
15 Income Tax Refund Fund as of the end of such fiscal year
16 (such surplus shall be net of the amount of refund claims
17 received but neither paid nor denied as of the end of the
18 fiscal year); excluding for fiscal years 2000, 2001, and
19 2002 amounts attributable to transfers under item (3) of
20 subsection (c) less refunds resulting from the earned
21 income tax credit.
22 (5) This Act shall constitute an irrevocable and
23 continuing appropriation from the Income Tax Refund Fund
24 for the purpose of paying refunds upon the order of the
25 Director in accordance with the provisions of this Section.
26 (e) Deposits into the Education Assistance Fund and the

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1Income Tax Surcharge Local Government Distributive Fund.
2 On July 1, 1991, and thereafter, of the amounts collected
3pursuant to subsections (a) and (b) of Section 201 of this Act,
4minus deposits into the Income Tax Refund Fund, the Department
5shall deposit 7.3% into the Education Assistance Fund in the
6State Treasury. Beginning July 1, 1991, and continuing through
7January 31, 1993, of the amounts collected pursuant to
8subsections (a) and (b) of Section 201 of the Illinois Income
9Tax Act, minus deposits into the Income Tax Refund Fund, the
10Department shall deposit 3.0% into the Income Tax Surcharge
11Local Government Distributive Fund in the State Treasury.
12Beginning February 1, 1993 and continuing through June 30,
131993, of the amounts collected pursuant to subsections (a) and
14(b) of Section 201 of the Illinois Income Tax Act, minus
15deposits into the Income Tax Refund Fund, the Department shall
16deposit 4.4% into the Income Tax Surcharge Local Government
17Distributive Fund in the State Treasury. Beginning July 1,
181993, and continuing through June 30, 1994, of the amounts
19collected under subsections (a) and (b) of Section 201 of this
20Act, minus deposits into the Income Tax Refund Fund, the
21Department shall deposit 1.475% into the Income Tax Surcharge
22Local Government Distributive Fund in the State Treasury.
23 (f) Transfers Deposits into the Fund for the Advancement of
24Education. Beginning February 1, 2015, each month the
25Department shall certify to the State Comptroller and the State
26Treasurer deposit the following portions of the revenue

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1realized from the tax imposed upon individuals, trusts, and
2estates by subsections (a) and (b) of Section 201 of this Act
3during the preceding month, minus deposits into the Income Tax
4Refund Fund, into the Fund for the Advancement of Education:
5 (1) beginning February 1, 2015, and prior to February
6 1, 2025, 1/30; and
7 (2) beginning February 1, 2025, 1/26.
8 Upon receipt of the certification, the State Comptroller
9shall order transferred and the State Treasurer shall transfer
10those amounts from the General Revenue Fund to the Fund for the
11Advancement of Education.
12 If the rate of tax imposed by subsection (a) and (b) of
13Section 201 is reduced pursuant to Section 201.5 of this Act,
14the Department shall not make the deposits required by this
15subsection (f) on or after the effective date of the reduction.
16 (g) Transfers Deposits into the Commitment to Human
17Services Fund. Beginning February 1, 2015, each month the
18Department shall certify to the State Comptroller and the State
19Treasurer deposit the following portions of the revenue
20realized from the tax imposed upon individuals, trusts, and
21estates by subsections (a) and (b) of Section 201 of this Act
22during the preceding month, minus deposits into the Income Tax
23Refund Fund, into the Commitment to Human Services Fund:
24 (1) beginning February 1, 2015, and prior to February
25 1, 2025, 1/30; and
26 (2) beginning February 1, 2025, 1/26.

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1 Upon receipt of the certification, the State Comptroller
2shall order transferred and the State Treasurer shall transfer
3those amounts from the General Revenue Fund to the Commitment
4to Human Services Fund.
5 If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (g) on or after the effective date of the reduction.
9 (h) Transfers Deposits into the Tax Compliance and
10Administration Fund. Beginning on the first day of the first
11calendar month to occur on or after August 26, 2014 (the
12effective date of Public Act 98-1098), each month the
13Department shall certify to the State Comptroller and the State
14Treasurer pay into the Tax Compliance and Administration Fund,
15to be used, subject to appropriation, to fund additional
16auditors and compliance personnel at the Department, an amount
17equal to 1/12 of 5% of the cash receipts collected during the
18preceding fiscal year by the Audit Bureau of the Department
19from the tax imposed by subsections (a), (b), (c), and (d) of
20Section 201 of this Act, net of deposits into the Income Tax
21Refund Fund made from those cash receipts. Upon receipt of the
22certification, the State Comptroller shall order transferred
23and the State Treasurer shall transfer those amounts from the
24General Revenue Fund to the Tax Compliance and Administration
25Fund. Those moneys shall be used, subject to appropriation, to
26fund additional auditors and compliance personnel at the

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1Department.
2(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
398-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff.
47-20-15.)
5 Section 30. The Use Tax Act is amended by changing Sections
63-5, 3-5.5, and 9 as follows:
7 (35 ILCS 105/3-5)
8 Sec. 3-5. Exemptions. Use of the following tangible
9personal property is exempt from the tax imposed by this Act:
10 (1) Personal property purchased from a corporation,
11society, association, foundation, institution, or
12organization, other than a limited liability company, that is
13organized and operated as a not-for-profit service enterprise
14for the benefit of persons 65 years of age or older if the
15personal property was not purchased by the enterprise for the
16purpose of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18Illinois county fair association for use in conducting,
19operating, or promoting the county fair.
20 (3) Personal property purchased by a not-for-profit arts or
21cultural organization that establishes, by proof required by
22the Department by rule, that it has received an exemption under
23Section 501(c)(3) of the Internal Revenue Code and that is
24organized and operated primarily for the presentation or

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11 (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25 (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

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1the car is subject to the Replacement Vehicle Tax.
2 (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12 (7) Farm chemicals.
13 (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17 (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20 (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23 (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

SB1285 Engrossed- 29 -LRB100 08067 HLH 18153 b
1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16 Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24 Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6 (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13 Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23 (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

SB1285 Engrossed- 31 -LRB100 08067 HLH 18153 b
1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5 (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14 (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19 (16) Coal and aggregate exploration, mining, off-highway
20hauling, processing, maintenance, and reclamation equipment,
21including replacement parts and equipment, and including
22equipment purchased for lease, but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code. The
24changes made to this Section by Public Act 97-767 apply on and
25after July 1, 2003, but no claim for credit or refund is
26allowed on or after August 16, 2013 (the effective date of

SB1285 Engrossed- 32 -LRB100 08067 HLH 18153 b
1Public Act 98-456) for such taxes paid during the period
2beginning July 1, 2003 and ending on August 16, 2013 (the
3effective date of Public Act 98-456).
4 (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10 (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser. The exemption provided by this
21paragraph (18) does not include machinery and equipment used in
22(i) the generation of electricity for wholesale or retail sale;
23(ii) the generation or treatment of natural or artificial gas
24for wholesale or retail sale that is delivered to customers
25through pipes, pipelines, or mains; or (iii) the treatment of
26water for wholesale or retail sale that is delivered to

SB1285 Engrossed- 33 -LRB100 08067 HLH 18153 b
1customers through pipes, pipelines, or mains. The provisions of
2Public Act 98-583 are declaratory of existing law as to the
3meaning and scope of this exemption.
4 (19) Personal property delivered to a purchaser or
5purchaser's donee inside Illinois when the purchase order for
6that personal property was received by a florist located
7outside Illinois who has a florist located inside Illinois
8deliver the personal property.
9 (20) Semen used for artificial insemination of livestock
10for direct agricultural production.
11 (21) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (21) is exempt from the provisions
17of Section 3-90, and the exemption provided for under this item
18(21) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after January 1,
202008 for such taxes paid during the period beginning May 30,
212000 and ending on January 1, 2008.
22 (22) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

SB1285 Engrossed- 34 -LRB100 08067 HLH 18153 b
1otherwise be subject to the tax imposed by this Act, to a
2hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the equipment is leased in a
5manner that does not qualify for this exemption or is used in
6any other non-exempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Service Use Tax Act, as the
8case may be, based on the fair market value of the property at
9the time the non-qualifying use occurs. No lessor shall collect
10or attempt to collect an amount (however designated) that
11purports to reimburse that lessor for the tax imposed by this
12Act or the Service Use Tax Act, as the case may be, if the tax
13has not been paid by the lessor. If a lessor improperly
14collects any such amount from the lessee, the lessee shall have
15a legal right to claim a refund of that amount from the lessor.
16If, however, that amount is not refunded to the lessee for any
17reason, the lessor is liable to pay that amount to the
18Department.
19 (23) Personal property purchased by a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time the lessor would otherwise be subject to the
22tax imposed by this Act, to a governmental body that has been
23issued an active sales tax exemption identification number by
24the Department under Section 1g of the Retailers' Occupation
25Tax Act. If the property is leased in a manner that does not
26qualify for this exemption or used in any other non-exempt

SB1285 Engrossed- 35 -LRB100 08067 HLH 18153 b
1manner, the lessor shall be liable for the tax imposed under
2this Act or the Service Use Tax Act, as the case may be, based
3on the fair market value of the property at the time the
4non-qualifying use occurs. No lessor shall collect or attempt
5to collect an amount (however designated) that purports to
6reimburse that lessor for the tax imposed by this Act or the
7Service Use Tax Act, as the case may be, if the tax has not been
8paid by the lessor. If a lessor improperly collects any such
9amount from the lessee, the lessee shall have a legal right to
10claim a refund of that amount from the lessor. If, however,
11that amount is not refunded to the lessee for any reason, the
12lessor is liable to pay that amount to the Department.
13 (24) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is donated for
16disaster relief to be used in a State or federally declared
17disaster area in Illinois or bordering Illinois by a
18manufacturer or retailer that is registered in this State to a
19corporation, society, association, foundation, or institution
20that has been issued a sales tax exemption identification
21number by the Department that assists victims of the disaster
22who reside within the declared disaster area.
23 (25) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is used in the
26performance of infrastructure repairs in this State, including

SB1285 Engrossed- 36 -LRB100 08067 HLH 18153 b
1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9 (26) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-90.
13 (27) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

SB1285 Engrossed- 37 -LRB100 08067 HLH 18153 b
1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5 (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19 (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

SB1285 Engrossed- 38 -LRB100 08067 HLH 18153 b
1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-90.
3 (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16 (31) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, computers and communications
18equipment utilized for any hospital purpose and equipment used
19in the diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

SB1285 Engrossed- 39 -LRB100 08067 HLH 18153 b
1any other nonexempt manner, the lessor shall be liable for the
2tax imposed under this Act or the Service Use Tax Act, as the
3case may be, based on the fair market value of the property at
4the time the nonqualifying use occurs. No lessor shall collect
5or attempt to collect an amount (however designated) that
6purports to reimburse that lessor for the tax imposed by this
7Act or the Service Use Tax Act, as the case may be, if the tax
8has not been paid by the lessor. If a lessor improperly
9collects any such amount from the lessee, the lessee shall have
10a legal right to claim a refund of that amount from the lessor.
11If, however, that amount is not refunded to the lessee for any
12reason, the lessor is liable to pay that amount to the
13Department. This paragraph is exempt from the provisions of
14Section 3-90.
15 (32) Beginning on the effective date of this amendatory Act
16of the 92nd General Assembly, personal property purchased by a
17lessor who leases the property, under a lease of one year or
18longer executed or in effect at the time the lessor would
19otherwise be subject to the tax imposed by this Act, to a
20governmental body that has been issued an active sales tax
21exemption identification number by the Department under
22Section 1g of the Retailers' Occupation Tax Act. If the
23property is leased in a manner that does not qualify for this
24exemption or used in any other nonexempt manner, the lessor
25shall be liable for the tax imposed under this Act or the
26Service Use Tax Act, as the case may be, based on the fair

SB1285 Engrossed- 40 -LRB100 08067 HLH 18153 b
1market value of the property at the time the nonqualifying use
2occurs. No lessor shall collect or attempt to collect an amount
3(however designated) that purports to reimburse that lessor for
4the tax imposed by this Act or the Service Use Tax Act, as the
5case may be, if the tax has not been paid by the lessor. If a
6lessor improperly collects any such amount from the lessee, the
7lessee shall have a legal right to claim a refund of that
8amount from the lessor. If, however, that amount is not
9refunded to the lessee for any reason, the lessor is liable to
10pay that amount to the Department. This paragraph is exempt
11from the provisions of Section 3-90.
12 (33) On and after July 1, 2003 and through June 30, 2004,
13the use in this State of motor vehicles of the second division
14with a gross vehicle weight in excess of 8,000 pounds and that
15are subject to the commercial distribution fee imposed under
16Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
171, 2004 and through June 30, 2005, the use in this State of
18motor vehicles of the second division: (i) with a gross vehicle
19weight rating in excess of 8,000 pounds; (ii) that are subject
20to the commercial distribution fee imposed under Section
213-815.1 of the Illinois Vehicle Code; and (iii) that are
22primarily used for commercial purposes. Through June 30, 2005,
23this exemption applies to repair and replacement parts added
24after the initial purchase of such a motor vehicle if that
25motor vehicle is used in a manner that would qualify for the
26rolling stock exemption otherwise provided for in this Act. For

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1purposes of this paragraph, the term "used for commercial
2purposes" means the transportation of persons or property in
3furtherance of any commercial or industrial enterprise,
4whether for-hire or not.
5 (34) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued under
10Title IV of the Environmental Protection Act. This paragraph is
11exempt from the provisions of Section 3-90.
12 (35) Beginning January 1, 2010, materials, parts,
13equipment, components, and furnishings incorporated into or
14upon an aircraft as part of the modification, refurbishment,
15completion, replacement, repair, or maintenance of the
16aircraft. This exemption includes consumable supplies used in
17the modification, refurbishment, completion, replacement,
18repair, and maintenance of aircraft, but excludes any
19materials, parts, equipment, components, and consumable
20supplies used in the modification, replacement, repair, and
21maintenance of aircraft engines or power plants, whether such
22engines or power plants are installed or uninstalled upon any
23such aircraft. "Consumable supplies" include, but are not
24limited to, adhesive, tape, sandpaper, general purpose
25lubricants, cleaning solution, latex gloves, and protective
26films. This exemption applies only to the use of qualifying

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1tangible personal property by persons who modify, refurbish,
2complete, repair, replace, or maintain aircraft and who (i)
3hold an Air Agency Certificate and are empowered to operate an
4approved repair station by the Federal Aviation
5Administration, (ii) have a Class IV Rating, and (iii) conduct
6operations in accordance with Part 145 of the Federal Aviation
7Regulations. The exemption does not include aircraft operated
8by a commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations. The changes made to this
11paragraph (35) by Public Act 98-534 are declarative of existing
12law.
13 (36) Tangible personal property purchased by a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 3-90.

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1 (37) Beginning January 1, 2017, menstrual pads, tampons,
2and menstrual cups.
3 (38) Personal property purchased by a purchaser who is
4exempt from the tax imposed by this Act by operation of federal
5law. This paragraph is exempt from the provisions of Section
63-90.
7(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
898-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
91-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
107-29-15; 99-855, eff. 8-19-16.)
11 (35 ILCS 105/3-5.5)
12 Sec. 3-5.5. Food and drugs sold by not-for-profit
13organizations; exemption. The Department shall not collect the
141% tax imposed under this Act on sales of tangible personal
15property (including but not limited to, food for human
16consumption that is to be consumed off the premises where it is
17sold (other than alcoholic beverages, soft drinks, and food
18that has been prepared for immediate consumption) and
19prescription and nonprescription medicines, drugs, medical
20appliances, products classified as Class III medical devices by
21the United States Food and Drug Administration that are used
22for cancer treatment pursuant to a prescription, as well as any
23accessories and components related to those devices,
24modifications to a motor vehicle for the purpose of rendering
25it usable by a person with a disability, and insulin, urine

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1testing materials, syringes, and needles used by diabetics, for
2human use) from any not-for-profit organization, that sells
3food in a food distribution program at a price below the retail
4cost of the food to purchasers who, as a condition of
5participation in the program, are required to perform community
6service, located in a county or municipality that notifies the
7Department, in writing, that the county or municipality does
8not want the tax to be collected from any of such organizations
9located in the county or municipality.
10(Source: P.A. 88-374.)
11 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
12 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
13and trailers that are required to be registered with an agency
14of this State, each retailer required or authorized to collect
15the tax imposed by this Act shall pay to the Department the
16amount of such tax (except as otherwise provided) at the time
17when he is required to file his return for the period during
18which such tax was collected, less a discount of 2.1% prior to
19January 1, 1990, and 1.75% on and after January 1, 1990, or $5
20per calendar year, whichever is greater, which is allowed to
21reimburse the retailer for expenses incurred in collecting the
22tax, keeping records, preparing and filing returns, remitting
23the tax and supplying data to the Department on request. In the
24case of retailers who report and pay the tax on a transaction
25by transaction basis, as provided in this Section, such

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1discount shall be taken with each such tax remittance instead
2of when such retailer files his periodic return. The Department
3may disallow the discount for retailers whose certificate of
4registration is revoked at the time the return is filed, but
5only if the Department's decision to revoke the certificate of
6registration has become final. A retailer need not remit that
7part of any tax collected by him to the extent that he is
8required to remit and does remit the tax imposed by the
9Retailers' Occupation Tax Act, with respect to the sale of the
10same property.
11 Where such tangible personal property is sold under a
12conditional sales contract, or under any other form of sale
13wherein the payment of the principal sum, or a part thereof, is
14extended beyond the close of the period for which the return is
15filed, the retailer, in collecting the tax (except as to motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State), may collect for
18each tax return period, only the tax applicable to that part of
19the selling price actually received during such tax return
20period.
21 Except as provided in this Section, on or before the
22twentieth day of each calendar month, such retailer shall file
23a return for the preceding calendar month. Such return shall be
24filed on forms prescribed by the Department and shall furnish
25such information as the Department may reasonably require.
26 The Department may require returns to be filed on a

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1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7 1. The name of the seller;
8 2. The address of the principal place of business from
9 which he engages in the business of selling tangible
10 personal property at retail in this State;
11 3. The total amount of taxable receipts received by him
12 during the preceding calendar month from sales of tangible
13 personal property by him during such preceding calendar
14 month, including receipts from charge and time sales, but
15 less all deductions allowed by law;
16 4. The amount of credit provided in Section 2d of this
17 Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the Department
21 may require.
22 If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26 Beginning October 1, 1993, a taxpayer who has an average

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1monthly tax liability of $150,000 or more shall make all
2payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1994, a taxpayer who has
4an average monthly tax liability of $100,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1995, a taxpayer who has
7an average monthly tax liability of $50,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 2000, a taxpayer who has
10an annual tax liability of $200,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. The term "annual tax liability" shall be the
13sum of the taxpayer's liabilities under this Act, and under all
14other State and local occupation and use tax laws administered
15by the Department, for the immediately preceding calendar year.
16The term "average monthly tax liability" means the sum of the
17taxpayer's liabilities under this Act, and under all other
18State and local occupation and use tax laws administered by the
19Department, for the immediately preceding calendar year
20divided by 12. Beginning on October 1, 2002, a taxpayer who has
21a tax liability in the amount set forth in subsection (b) of
22Section 2505-210 of the Department of Revenue Law shall make
23all payments required by rules of the Department by electronic
24funds transfer.
25 Before August 1 of each year beginning in 1993, the
26Department shall notify all taxpayers required to make payments

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1by electronic funds transfer. All taxpayers required to make
2payments by electronic funds transfer shall make those payments
3for a minimum of one year beginning on October 1.
4 Any taxpayer not required to make payments by electronic
5funds transfer may make payments by electronic funds transfer
6with the permission of the Department.
7 All taxpayers required to make payment by electronic funds
8transfer and any taxpayers authorized to voluntarily make
9payments by electronic funds transfer shall make those payments
10in the manner authorized by the Department.
11 The Department shall adopt such rules as are necessary to
12effectuate a program of electronic funds transfer and the
13requirements of this Section.
14 Before October 1, 2000, if the taxpayer's average monthly
15tax liability to the Department under this Act, the Retailers'
16Occupation Tax Act, the Service Occupation Tax Act, the Service
17Use Tax Act was $10,000 or more during the preceding 4 complete
18calendar quarters, he shall file a return with the Department
19each month by the 20th day of the month next following the
20month during which such tax liability is incurred and shall
21make payments to the Department on or before the 7th, 15th,
2222nd and last day of the month during which such liability is
23incurred. On and after October 1, 2000, if the taxpayer's
24average monthly tax liability to the Department under this Act,
25the Retailers' Occupation Tax Act, the Service Occupation Tax
26Act, and the Service Use Tax Act was $20,000 or more during the

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1preceding 4 complete calendar quarters, he shall file a return
2with the Department each month by the 20th day of the month
3next following the month during which such tax liability is
4incurred and shall make payment to the Department on or before
5the 7th, 15th, 22nd and last day of the month during which such
6liability is incurred. If the month during which such tax
7liability is incurred began prior to January 1, 1985, each
8payment shall be in an amount equal to 1/4 of the taxpayer's
9actual liability for the month or an amount set by the
10Department not to exceed 1/4 of the average monthly liability
11of the taxpayer to the Department for the preceding 4 complete
12calendar quarters (excluding the month of highest liability and
13the month of lowest liability in such 4 quarter period). If the
14month during which such tax liability is incurred begins on or
15after January 1, 1985, and prior to January 1, 1987, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 27.5% of the taxpayer's
18liability for the same calendar month of the preceding year. If
19the month during which such tax liability is incurred begins on
20or after January 1, 1987, and prior to January 1, 1988, each
21payment shall be in an amount equal to 22.5% of the taxpayer's
22actual liability for the month or 26.25% of the taxpayer's
23liability for the same calendar month of the preceding year. If
24the month during which such tax liability is incurred begins on
25or after January 1, 1988, and prior to January 1, 1989, or
26begins on or after January 1, 1996, each payment shall be in an

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1amount equal to 22.5% of the taxpayer's actual liability for
2the month or 25% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during which
4such tax liability is incurred begins on or after January 1,
51989, and prior to January 1, 1996, each payment shall be in an
6amount equal to 22.5% of the taxpayer's actual liability for
7the month or 25% of the taxpayer's liability for the same
8calendar month of the preceding year or 100% of the taxpayer's
9actual liability for the quarter monthly reporting period. The
10amount of such quarter monthly payments shall be credited
11against the final tax liability of the taxpayer's return for
12that month. Before October 1, 2000, once applicable, the
13requirement of the making of quarter monthly payments to the
14Department shall continue until such taxpayer's average
15monthly liability to the Department during the preceding 4
16complete calendar quarters (excluding the month of highest
17liability and the month of lowest liability) is less than
18$9,000, or until such taxpayer's average monthly liability to
19the Department as computed for each calendar quarter of the 4
20preceding complete calendar quarter period is less than
21$10,000. However, if a taxpayer can show the Department that a
22substantial change in the taxpayer's business has occurred
23which causes the taxpayer to anticipate that his average
24monthly tax liability for the reasonably foreseeable future
25will fall below the $10,000 threshold stated above, then such
26taxpayer may petition the Department for change in such

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1taxpayer's reporting status. On and after October 1, 2000, once
2applicable, the requirement of the making of quarter monthly
3payments to the Department shall continue until such taxpayer's
4average monthly liability to the Department during the
5preceding 4 complete calendar quarters (excluding the month of
6highest liability and the month of lowest liability) is less
7than $19,000 or until such taxpayer's average monthly liability
8to the Department as computed for each calendar quarter of the
94 preceding complete calendar quarter period is less than
10$20,000. However, if a taxpayer can show the Department that a
11substantial change in the taxpayer's business has occurred
12which causes the taxpayer to anticipate that his average
13monthly tax liability for the reasonably foreseeable future
14will fall below the $20,000 threshold stated above, then such
15taxpayer may petition the Department for a change in such
16taxpayer's reporting status. The Department shall change such
17taxpayer's reporting status unless it finds that such change is
18seasonal in nature and not likely to be long term. If any such
19quarter monthly payment is not paid at the time or in the
20amount required by this Section, then the taxpayer shall be
21liable for penalties and interest on the difference between the
22minimum amount due and the amount of such quarter monthly
23payment actually and timely paid, except insofar as the
24taxpayer has previously made payments for that month to the
25Department in excess of the minimum payments previously due as
26provided in this Section. The Department shall make reasonable

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1rules and regulations to govern the quarter monthly payment
2amount and quarter monthly payment dates for taxpayers who file
3on other than a calendar monthly basis.
4 If any such payment provided for in this Section exceeds
5the taxpayer's liabilities under this Act, the Retailers'
6Occupation Tax Act, the Service Occupation Tax Act and the
7Service Use Tax Act, as shown by an original monthly return,
8the Department shall issue to the taxpayer a credit memorandum
9no later than 30 days after the date of payment, which
10memorandum may be submitted by the taxpayer to the Department
11in payment of tax liability subsequently to be remitted by the
12taxpayer to the Department or be assigned by the taxpayer to a
13similar taxpayer under this Act, the Retailers' Occupation Tax
14Act, the Service Occupation Tax Act or the Service Use Tax Act,
15in accordance with reasonable rules and regulations to be
16prescribed by the Department, except that if such excess
17payment is shown on an original monthly return and is made
18after December 31, 1986, no credit memorandum shall be issued,
19unless requested by the taxpayer. If no such request is made,
20the taxpayer may credit such excess payment against tax
21liability subsequently to be remitted by the taxpayer to the
22Department under this Act, the Retailers' Occupation Tax Act,
23the Service Occupation Tax Act or the Service Use Tax Act, in
24accordance with reasonable rules and regulations prescribed by
25the Department. If the Department subsequently determines that
26all or any part of the credit taken was not actually due to the

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1taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
2be reduced by 2.1% or 1.75% of the difference between the
3credit taken and that actually due, and the taxpayer shall be
4liable for penalties and interest on such difference.
5 If the retailer is otherwise required to file a monthly
6return and if the retailer's average monthly tax liability to
7the Department does not exceed $200, the Department may
8authorize his returns to be filed on a quarter annual basis,
9with the return for January, February, and March of a given
10year being due by April 20 of such year; with the return for
11April, May and June of a given year being due by July 20 of such
12year; with the return for July, August and September of a given
13year being due by October 20 of such year, and with the return
14for October, November and December of a given year being due by
15January 20 of the following year.
16 If the retailer is otherwise required to file a monthly or
17quarterly return and if the retailer's average monthly tax
18liability to the Department does not exceed $50, the Department
19may authorize his returns to be filed on an annual basis, with
20the return for a given year being due by January 20 of the
21following year.
22 Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as monthly
24returns.
25 Notwithstanding any other provision in this Act concerning
26the time within which a retailer may file his return, in the

SB1285 Engrossed- 54 -LRB100 08067 HLH 18153 b
1case of any retailer who ceases to engage in a kind of business
2which makes him responsible for filing returns under this Act,
3such retailer shall file a final return under this Act with the
4Department not more than one month after discontinuing such
5business.
6 In addition, with respect to motor vehicles, watercraft,
7aircraft, and trailers that are required to be registered with
8an agency of this State, every retailer selling this kind of
9tangible personal property shall file, with the Department,
10upon a form to be prescribed and supplied by the Department, a
11separate return for each such item of tangible personal
12property which the retailer sells, except that if, in the same
13transaction, (i) a retailer of aircraft, watercraft, motor
14vehicles or trailers transfers more than one aircraft,
15watercraft, motor vehicle or trailer to another aircraft,
16watercraft, motor vehicle or trailer retailer for the purpose
17of resale or (ii) a retailer of aircraft, watercraft, motor
18vehicles, or trailers transfers more than one aircraft,
19watercraft, motor vehicle, or trailer to a purchaser for use as
20a qualifying rolling stock as provided in Section 3-55 of this
21Act, then that seller may report the transfer of all the
22aircraft, watercraft, motor vehicles or trailers involved in
23that transaction to the Department on the same uniform
24invoice-transaction reporting return form. For purposes of
25this Section, "watercraft" means a Class 2, Class 3, or Class 4
26watercraft as defined in Section 3-2 of the Boat Registration

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1and Safety Act, a personal watercraft, or any boat equipped
2with an inboard motor.
3 The transaction reporting return in the case of motor
4vehicles or trailers that are required to be registered with an
5agency of this State, shall be the same document as the Uniform
6Invoice referred to in Section 5-402 of the Illinois Vehicle
7Code and must show the name and address of the seller; the name
8and address of the purchaser; the amount of the selling price
9including the amount allowed by the retailer for traded-in
10property, if any; the amount allowed by the retailer for the
11traded-in tangible personal property, if any, to the extent to
12which Section 2 of this Act allows an exemption for the value
13of traded-in property; the balance payable after deducting such
14trade-in allowance from the total selling price; the amount of
15tax due from the retailer with respect to such transaction; the
16amount of tax collected from the purchaser by the retailer on
17such transaction (or satisfactory evidence that such tax is not
18due in that particular instance, if that is claimed to be the
19fact); the place and date of the sale; a sufficient
20identification of the property sold; such other information as
21is required in Section 5-402 of the Illinois Vehicle Code, and
22such other information as the Department may reasonably
23require.
24 The transaction reporting return in the case of watercraft
25and aircraft must show the name and address of the seller; the
26name and address of the purchaser; the amount of the selling

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1price including the amount allowed by the retailer for
2traded-in property, if any; the amount allowed by the retailer
3for the traded-in tangible personal property, if any, to the
4extent to which Section 2 of this Act allows an exemption for
5the value of traded-in property; the balance payable after
6deducting such trade-in allowance from the total selling price;
7the amount of tax due from the retailer with respect to such
8transaction; the amount of tax collected from the purchaser by
9the retailer on such transaction (or satisfactory evidence that
10such tax is not due in that particular instance, if that is
11claimed to be the fact); the place and date of the sale, a
12sufficient identification of the property sold, and such other
13information as the Department may reasonably require.
14 Such transaction reporting return shall be filed not later
15than 20 days after the date of delivery of the item that is
16being sold, but may be filed by the retailer at any time sooner
17than that if he chooses to do so. The transaction reporting
18return and tax remittance or proof of exemption from the tax
19that is imposed by this Act may be transmitted to the
20Department by way of the State agency with which, or State
21officer with whom, the tangible personal property must be
22titled or registered (if titling or registration is required)
23if the Department and such agency or State officer determine
24that this procedure will expedite the processing of
25applications for title or registration.
26 With each such transaction reporting return, the retailer

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1shall remit the proper amount of tax due (or shall submit
2satisfactory evidence that the sale is not taxable if that is
3the case), to the Department or its agents, whereupon the
4Department shall issue, in the purchaser's name, a tax receipt
5(or a certificate of exemption if the Department is satisfied
6that the particular sale is tax exempt) which such purchaser
7may submit to the agency with which, or State officer with
8whom, he must title or register the tangible personal property
9that is involved (if titling or registration is required) in
10support of such purchaser's application for an Illinois
11certificate or other evidence of title or registration to such
12tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14Act precludes a user, who has paid the proper tax to the
15retailer, from obtaining his certificate of title or other
16evidence of title or registration (if titling or registration
17is required) upon satisfying the Department that such user has
18paid the proper tax (if tax is due) to the retailer. The
19Department shall adopt appropriate rules to carry out the
20mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22wants the transaction reporting return filed and the payment of
23tax or proof of exemption made to the Department before the
24retailer is willing to take these actions and such user has not
25paid the tax to the retailer, such user may certify to the fact
26of such delay by the retailer, and may (upon the Department

SB1285 Engrossed- 58 -LRB100 08067 HLH 18153 b
1being satisfied of the truth of such certification) transmit
2the information required by the transaction reporting return
3and the remittance for tax or proof of exemption directly to
4the Department and obtain his tax receipt or exemption
5determination, in which event the transaction reporting return
6and tax remittance (if a tax payment was required) shall be
7credited by the Department to the proper retailer's account
8with the Department, but without the 2.1% or 1.75% discount
9provided for in this Section being allowed. When the user pays
10the tax directly to the Department, he shall pay the tax in the
11same amount and in the same form in which it would be remitted
12if the tax had been remitted to the Department by the retailer.
13 Where a retailer collects the tax with respect to the
14selling price of tangible personal property which he sells and
15the purchaser thereafter returns such tangible personal
16property and the retailer refunds the selling price thereof to
17the purchaser, such retailer shall also refund, to the
18purchaser, the tax so collected from the purchaser. When filing
19his return for the period in which he refunds such tax to the
20purchaser, the retailer may deduct the amount of the tax so
21refunded by him to the purchaser from any other use tax which
22such retailer may be required to pay or remit to the
23Department, as shown by such return, if the amount of the tax
24to be deducted was previously remitted to the Department by
25such retailer. If the retailer has not previously remitted the
26amount of such tax to the Department, he is entitled to no

SB1285 Engrossed- 59 -LRB100 08067 HLH 18153 b
1deduction under this Act upon refunding such tax to the
2purchaser.
3 Any retailer filing a return under this Section shall also
4include (for the purpose of paying tax thereon) the total tax
5covered by such return upon the selling price of tangible
6personal property purchased by him at retail from a retailer,
7but as to which the tax imposed by this Act was not collected
8from the retailer filing such return, and such retailer shall
9remit the amount of such tax to the Department when filing such
10return.
11 If experience indicates such action to be practicable, the
12Department may prescribe and furnish a combination or joint
13return which will enable retailers, who are required to file
14returns hereunder and also under the Retailers' Occupation Tax
15Act, to furnish all the return information required by both
16Acts on the one form.
17 Where the retailer has more than one business registered
18with the Department under separate registration under this Act,
19such retailer may not file each return that is due as a single
20return covering all such registered businesses, but shall file
21separate returns for each such registered business.
22 Beginning January 1, 1990, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund, a special
24fund in the State Treasury which is hereby created, the net
25revenue realized for the preceding month from the 1% tax on
26sales of food for human consumption that which is to be

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1consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks and food that which has been
3prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances, products
5classified as Class III medical devices by the United States
6Food and Drug Administration that are used for cancer treatment
7pursuant to a prescription, as well as any accessories and
8components related to those devices, modifications to a motor
9vehicle for the purpose of rendering it usable by a person with
10a disability, and insulin, urine testing materials, syringes
11and needles used by diabetics, for human use.
12 Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund 4% of the
14net revenue realized for the preceding month from the 6.25%
15general rate on the selling price of tangible personal property
16which is purchased outside Illinois at retail from a retailer
17and which is titled or registered by an agency of this State's
18government.
19 Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund, a special
21fund in the State Treasury, 20% of the net revenue realized for
22the preceding month from the 6.25% general rate on the selling
23price of tangible personal property, other than tangible
24personal property which is purchased outside Illinois at retail
25from a retailer and which is titled or registered by an agency
26of this State's government.

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1 Beginning August 1, 2000, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 100% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol. Beginning
5September 1, 2010, each month the Department shall pay into the
6State and Local Sales Tax Reform Fund 100% of the net revenue
7realized for the preceding month from the 1.25% rate on the
8selling price of sales tax holiday items.
9 Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund 16% of the net revenue
11realized for the preceding month from the 6.25% general rate on
12the selling price of tangible personal property which is
13purchased outside Illinois at retail from a retailer and which
14is titled or registered by an agency of this State's
15government.
16 Beginning October 1, 2009, each month the Department shall
17pay into the Capital Projects Fund an amount that is equal to
18an amount estimated by the Department to represent 80% of the
19net revenue realized for the preceding month from the sale of
20candy, grooming and hygiene products, and soft drinks that had
21been taxed at a rate of 1% prior to September 1, 2009 but that
22are now taxed at 6.25%.
23 Beginning July 1, 2011, each month the Department shall pay
24into the Clean Air Act Permit Fund 80% of the net revenue
25realized for the preceding month from the 6.25% general rate on
26the selling price of sorbents used in Illinois in the process

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1of sorbent injection as used to comply with the Environmental
2Protection Act or the federal Clean Air Act, but the total
3payment into the Clean Air Act Permit Fund under this Act and
4the Retailers' Occupation Tax Act shall not exceed $2,000,000
5in any fiscal year.
6 Beginning July 1, 2013, each month the Department shall pay
7into the Underground Storage Tank Fund from the proceeds
8collected under this Act, the Service Use Tax Act, the Service
9Occupation Tax Act, and the Retailers' Occupation Tax Act an
10amount equal to the average monthly deficit in the Underground
11Storage Tank Fund during the prior year, as certified annually
12by the Illinois Environmental Protection Agency, but the total
13payment into the Underground Storage Tank Fund under this Act,
14the Service Use Tax Act, the Service Occupation Tax Act, and
15the Retailers' Occupation Tax Act shall not exceed $18,000,000
16in any State fiscal year. As used in this paragraph, the
17"average monthly deficit" shall be equal to the difference
18between the average monthly claims for payment by the fund and
19the average monthly revenues deposited into the fund, excluding
20payments made pursuant to this paragraph.
21 Beginning July 1, 2015, of the remainder of the moneys
22received by the Department under this Act, the Service Use Tax
23Act, the Service Occupation Tax Act, and the Retailers'
24Occupation Tax Act, each month the Department shall deposit
25$500,000 into the State Crime Laboratory Fund.
26 Of the remainder of the moneys received by the Department

SB1285 Engrossed- 63 -LRB100 08067 HLH 18153 b
1pursuant to this Act, (a) 1.75% thereof shall be paid into the
2Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3and after July 1, 1989, 3.8% thereof shall be paid into the
4Build Illinois Fund; provided, however, that if in any fiscal
5year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6may be, of the moneys received by the Department and required
7to be paid into the Build Illinois Fund pursuant to Section 3
8of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
9Act, Section 9 of the Service Use Tax Act, and Section 9 of the
10Service Occupation Tax Act, such Acts being hereinafter called
11the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
12may be, of moneys being hereinafter called the "Tax Act
13Amount", and (2) the amount transferred to the Build Illinois
14Fund from the State and Local Sales Tax Reform Fund shall be
15less than the Annual Specified Amount (as defined in Section 3
16of the Retailers' Occupation Tax Act), an amount equal to the
17difference shall be immediately paid into the Build Illinois
18Fund from other moneys received by the Department pursuant to
19the Tax Acts; and further provided, that if on the last
20business day of any month the sum of (1) the Tax Act Amount
21required to be deposited into the Build Illinois Bond Account
22in the Build Illinois Fund during such month and (2) the amount
23transferred during such month to the Build Illinois Fund from
24the State and Local Sales Tax Reform Fund shall have been less
25than 1/12 of the Annual Specified Amount, an amount equal to
26the difference shall be immediately paid into the Build

SB1285 Engrossed- 64 -LRB100 08067 HLH 18153 b
1Illinois Fund from other moneys received by the Department
2pursuant to the Tax Acts; and, further provided, that in no
3event shall the payments required under the preceding proviso
4result in aggregate payments into the Build Illinois Fund
5pursuant to this clause (b) for any fiscal year in excess of
6the greater of (i) the Tax Act Amount or (ii) the Annual
7Specified Amount for such fiscal year; and, further provided,
8that the amounts payable into the Build Illinois Fund under
9this clause (b) shall be payable only until such time as the
10aggregate amount on deposit under each trust indenture securing
11Bonds issued and outstanding pursuant to the Build Illinois
12Bond Act is sufficient, taking into account any future
13investment income, to fully provide, in accordance with such
14indenture, for the defeasance of or the payment of the
15principal of, premium, if any, and interest on the Bonds
16secured by such indenture and on any Bonds expected to be
17issued thereafter and all fees and costs payable with respect
18thereto, all as certified by the Director of the Bureau of the
19Budget (now Governor's Office of Management and Budget). If on
20the last business day of any month in which Bonds are
21outstanding pursuant to the Build Illinois Bond Act, the
22aggregate of the moneys deposited in the Build Illinois Bond
23Account in the Build Illinois Fund in such month shall be less
24than the amount required to be transferred in such month from
25the Build Illinois Bond Account to the Build Illinois Bond
26Retirement and Interest Fund pursuant to Section 13 of the

SB1285 Engrossed- 65 -LRB100 08067 HLH 18153 b
1Build Illinois Bond Act, an amount equal to such deficiency
2shall be immediately paid from other moneys received by the
3Department pursuant to the Tax Acts to the Build Illinois Fund;
4provided, however, that any amounts paid to the Build Illinois
5Fund in any fiscal year pursuant to this sentence shall be
6deemed to constitute payments pursuant to clause (b) of the
7preceding sentence and shall reduce the amount otherwise
8payable for such fiscal year pursuant to clause (b) of the
9preceding sentence. The moneys received by the Department
10pursuant to this Act and required to be deposited into the
11Build Illinois Fund are subject to the pledge, claim and charge
12set forth in Section 12 of the Build Illinois Bond Act.
13 Subject to payment of amounts into the Build Illinois Fund
14as provided in the preceding paragraph or in any amendment
15thereto hereafter enacted, the following specified monthly
16installment of the amount requested in the certificate of the
17Chairman of the Metropolitan Pier and Exposition Authority
18provided under Section 8.25f of the State Finance Act, but not
19in excess of the sums designated as "Total Deposit", shall be
20deposited in the aggregate from collections under Section 9 of
21the Use Tax Act, Section 9 of the Service Use Tax Act, Section
229 of the Service Occupation Tax Act, and Section 3 of the
23Retailers' Occupation Tax Act into the McCormick Place
24Expansion Project Fund in the specified fiscal years.
25Fiscal YearTotal Deposit
261993 $0

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11994 53,000,000
21995 58,000,000
31996 61,000,000
41997 64,000,000
51998 68,000,000
61999 71,000,000
72000 75,000,000
82001 80,000,000
92002 93,000,000
102003 99,000,000
112004103,000,000
122005108,000,000
132006113,000,000
142007119,000,000
152008126,000,000
162009132,000,000
172010139,000,000
182011146,000,000
192012153,000,000
202013161,000,000
212014170,000,000
222015179,000,000
232016189,000,000
242017199,000,000
252018210,000,000
262019221,000,000

SB1285 Engrossed- 67 -LRB100 08067 HLH 18153 b
12020233,000,000
22021246,000,000
32022260,000,000
42023275,000,000
52024 275,000,000
62025 275,000,000
72026 279,000,000
82027 292,000,000
92028 307,000,000
102029 322,000,000
112030 338,000,000
122031 350,000,000
132032 350,000,000
14and
15each fiscal year
16thereafter that bonds
17are outstanding under
18Section 13.2 of the
19Metropolitan Pier and
20Exposition Authority Act,
21but not after fiscal year 2060.
22 Beginning July 20, 1993 and in each month of each fiscal
23year thereafter, one-eighth of the amount requested in the
24certificate of the Chairman of the Metropolitan Pier and
25Exposition Authority for that fiscal year, less the amount
26deposited into the McCormick Place Expansion Project Fund by

SB1285 Engrossed- 68 -LRB100 08067 HLH 18153 b
1the State Treasurer in the respective month under subsection
2(g) of Section 13 of the Metropolitan Pier and Exposition
3Authority Act, plus cumulative deficiencies in the deposits
4required under this Section for previous months and years,
5shall be deposited into the McCormick Place Expansion Project
6Fund, until the full amount requested for the fiscal year, but
7not in excess of the amount specified above as "Total Deposit",
8has been deposited.
9 Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning July 1, 1993 and ending on September 30,
132013, the Department shall each month pay into the Illinois Tax
14Increment Fund 0.27% of 80% of the net revenue realized for the
15preceding month from the 6.25% general rate on the selling
16price of tangible personal property.
17 Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning with the receipt of the first report of
21taxes paid by an eligible business and continuing for a 25-year
22period, the Department shall each month pay into the Energy
23Infrastructure Fund 80% of the net revenue realized from the
246.25% general rate on the selling price of Illinois-mined coal
25that was sold to an eligible business. For purposes of this
26paragraph, the term "eligible business" means a new electric

SB1285 Engrossed- 69 -LRB100 08067 HLH 18153 b
1generating facility certified pursuant to Section 605-332 of
2the Department of Commerce and Economic Opportunity Law of the
3Civil Administrative Code of Illinois.
4 Subject to payment of amounts into the Build Illinois Fund,
5the McCormick Place Expansion Project Fund, the Illinois Tax
6Increment Fund, and the Energy Infrastructure Fund pursuant to
7the preceding paragraphs or in any amendments to this Section
8hereafter enacted, beginning on the first day of the first
9calendar month to occur on or after August 26, 2014 (the
10effective date of Public Act 98-1098) this amendatory Act of
11the 98th General Assembly, each month, from the collections
12made under Section 9 of the Use Tax Act, Section 9 of the
13Service Use Tax Act, Section 9 of the Service Occupation Tax
14Act, and Section 3 of the Retailers' Occupation Tax Act, the
15Department shall pay into the Tax Compliance and Administration
16Fund, to be used, subject to appropriation, to fund additional
17auditors and compliance personnel at the Department of Revenue,
18an amount equal to 1/12 of 5% of 80% of the cash receipts
19collected during the preceding fiscal year by the Audit Bureau
20of the Department under the Use Tax Act, the Service Use Tax
21Act, the Service Occupation Tax Act, the Retailers' Occupation
22Tax Act, and associated local occupation and use taxes
23administered by the Department.
24 Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% thereof shall be paid into the State
26Treasury and 25% shall be reserved in a special account and

SB1285 Engrossed- 70 -LRB100 08067 HLH 18153 b
1used only for the transfer to the Common School Fund as part of
2the monthly transfer from the General Revenue Fund in
3accordance with Section 8a of the State Finance Act.
4 As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11 Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15 For greater simplicity of administration, manufacturers,
16importers and wholesalers whose products are sold at retail in
17Illinois by numerous retailers, and who wish to do so, may
18assume the responsibility for accounting and paying to the
19Department all tax accruing under this Act with respect to such
20sales, if the retailers who are affected do not make written
21objection to the Department to this arrangement.
22(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2398-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
248-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
25eff. 1-27-17; revised 2-3-17.)

SB1285 Engrossed- 71 -LRB100 08067 HLH 18153 b
1 Section 35. The Service Use Tax Act is amended by changing
2Sections 3-5.5 and 9 as follows:
3 (35 ILCS 110/3-5.5)
4 Sec. 3-5.5. Food and drugs sold by not-for-profit
5organizations; exemption. The Department shall not collect the
61% tax imposed under this Act on sales of tangible personal
7property (including but not limited to, food for human
8consumption that is to be consumed off the premises where it is
9sold (other than alcoholic beverages, soft drinks, and food
10that has been prepared for immediate consumption) and
11prescription and nonprescription medicines, drugs, medical
12appliances, products classified as Class III medical devices by
13the United States Food and Drug Administration that are used
14for cancer treatment pursuant to a prescription, as well as any
15accessories and components related to those devices,
16modifications to a motor vehicle for the purpose of rendering
17it usable by a person with a disability, and insulin, urine
18testing materials, syringes, and needles used by diabetics, for
19human use) from any not-for-profit organization, that sells
20food in a food distribution program at a price below the retail
21cost of the food to purchasers who, as a condition of
22participation in the program, are required to perform community
23service, located in a county or municipality that notifies the
24Department, in writing, that the county or municipality does
25not want the tax to be collected from any of such organizations

SB1285 Engrossed- 72 -LRB100 08067 HLH 18153 b
1located in the county or municipality.
2(Source: P.A. 88-374.)
3 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
4 Sec. 9. Each serviceman required or authorized to collect
5the tax herein imposed shall pay to the Department the amount
6of such tax (except as otherwise provided) at the time when he
7is required to file his return for the period during which such
8tax was collected, less a discount of 2.1% prior to January 1,
91990 and 1.75% on and after January 1, 1990, or $5 per calendar
10year, whichever is greater, which is allowed to reimburse the
11serviceman for expenses incurred in collecting the tax, keeping
12records, preparing and filing returns, remitting the tax and
13supplying data to the Department on request. The Department may
14disallow the discount for servicemen whose certificate of
15registration is revoked at the time the return is filed, but
16only if the Department's decision to revoke the certificate of
17registration has become final. A serviceman need not remit that
18part of any tax collected by him to the extent that he is
19required to pay and does pay the tax imposed by the Service
20Occupation Tax Act with respect to his sale of service
21involving the incidental transfer by him of the same property.
22 Except as provided hereinafter in this Section, on or
23before the twentieth day of each calendar month, such
24serviceman shall file a return for the preceding calendar month
25in accordance with reasonable Rules and Regulations to be

SB1285 Engrossed- 73 -LRB100 08067 HLH 18153 b
1promulgated by the Department. Such return shall be filed on a
2form prescribed by the Department and shall contain such
3information as the Department may reasonably require.
4 The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11 1. The name of the seller;
12 2. The address of the principal place of business from
13 which he engages in business as a serviceman in this State;
14 3. The total amount of taxable receipts received by him
15 during the preceding calendar month, including receipts
16 from charge and time sales, but less all deductions allowed
17 by law;
18 4. The amount of credit provided in Section 2d of this
19 Act;
20 5. The amount of tax due;
21 5-5. The signature of the taxpayer; and
22 6. Such other reasonable information as the Department
23 may require.
24 If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

SB1285 Engrossed- 74 -LRB100 08067 HLH 18153 b
1due on the return shall be deemed assessed.
2 Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

SB1285 Engrossed- 75 -LRB100 08067 HLH 18153 b
1 Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6 Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9 All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16 If the serviceman is otherwise required to file a monthly
17return and if the serviceman's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February and March of a given year
21being due by April 20 of such year; with the return for April,
22May and June of a given year being due by July 20 of such year;
23with the return for July, August and September of a given year
24being due by October 20 of such year, and with the return for
25October, November and December of a given year being due by
26January 20 of the following year.

SB1285 Engrossed- 76 -LRB100 08067 HLH 18153 b
1 If the serviceman is otherwise required to file a monthly
2or quarterly return and if the serviceman's average monthly tax
3liability to the Department does not exceed $50, the Department
4may authorize his returns to be filed on an annual basis, with
5the return for a given year being due by January 20 of the
6following year.
7 Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10 Notwithstanding any other provision in this Act concerning
11the time within which a serviceman may file his return, in the
12case of any serviceman who ceases to engage in a kind of
13business which makes him responsible for filing returns under
14this Act, such serviceman shall file a final return under this
15Act with the Department not more than 1 month after
16discontinuing such business.
17 Where a serviceman collects the tax with respect to the
18selling price of property which he sells and the purchaser
19thereafter returns such property and the serviceman refunds the
20selling price thereof to the purchaser, such serviceman shall
21also refund, to the purchaser, the tax so collected from the
22purchaser. When filing his return for the period in which he
23refunds such tax to the purchaser, the serviceman may deduct
24the amount of the tax so refunded by him to the purchaser from
25any other Service Use Tax, Service Occupation Tax, retailers'
26occupation tax or use tax which such serviceman may be required

SB1285 Engrossed- 77 -LRB100 08067 HLH 18153 b
1to pay or remit to the Department, as shown by such return,
2provided that the amount of the tax to be deducted shall
3previously have been remitted to the Department by such
4serviceman. If the serviceman shall not previously have
5remitted the amount of such tax to the Department, he shall be
6entitled to no deduction hereunder upon refunding such tax to
7the purchaser.
8 Any serviceman filing a return hereunder shall also include
9the total tax upon the selling price of tangible personal
10property purchased for use by him as an incident to a sale of
11service, and such serviceman shall remit the amount of such tax
12to the Department when filing such return.
13 If experience indicates such action to be practicable, the
14Department may prescribe and furnish a combination or joint
15return which will enable servicemen, who are required to file
16returns hereunder and also under the Service Occupation Tax
17Act, to furnish all the return information required by both
18Acts on the one form.
19 Where the serviceman has more than one business registered
20with the Department under separate registration hereunder,
21such serviceman shall not file each return that is due as a
22single return covering all such registered businesses, but
23shall file separate returns for each such registered business.
24 Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Tax Reform Fund, a special fund in
26the State Treasury, the net revenue realized for the preceding

SB1285 Engrossed- 78 -LRB100 08067 HLH 18153 b
1month from the 1% tax on sales of food for human consumption
2that which is to be consumed off the premises where it is sold
3(other than alcoholic beverages, soft drinks and food that
4which has been prepared for immediate consumption) and
5prescription and nonprescription medicines, drugs, medical
6appliances, products classified as Class III medical devices,
7by the United States Food and Drug Administration that are used
8for cancer treatment pursuant to a prescription, as well as any
9accessories and components related to those devices,
10modifications to a motor vehicle for the purpose of rendering
11it usable by a person with a disability, and insulin, urine
12testing materials, syringes and needles used by diabetics, for
13human use.
14 Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund 20% of the
16net revenue realized for the preceding month from the 6.25%
17general rate on transfers of tangible personal property, other
18than tangible personal property which is purchased outside
19Illinois at retail from a retailer and which is titled or
20registered by an agency of this State's government.
21 Beginning August 1, 2000, each month the Department shall
22pay into the State and Local Sales Tax Reform Fund 100% of the
23net revenue realized for the preceding month from the 1.25%
24rate on the selling price of motor fuel and gasohol.
25 Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

SB1285 Engrossed- 79 -LRB100 08067 HLH 18153 b
1an amount estimated by the Department to represent 80% of the
2net revenue realized for the preceding month from the sale of
3candy, grooming and hygiene products, and soft drinks that had
4been taxed at a rate of 1% prior to September 1, 2009 but that
5are now taxed at 6.25%.
6 Beginning July 1, 2013, each month the Department shall pay
7into the Underground Storage Tank Fund from the proceeds
8collected under this Act, the Use Tax Act, the Service
9Occupation Tax Act, and the Retailers' Occupation Tax Act an
10amount equal to the average monthly deficit in the Underground
11Storage Tank Fund during the prior year, as certified annually
12by the Illinois Environmental Protection Agency, but the total
13payment into the Underground Storage Tank Fund under this Act,
14the Use Tax Act, the Service Occupation Tax Act, and the
15Retailers' Occupation Tax Act shall not exceed $18,000,000 in
16any State fiscal year. As used in this paragraph, the "average
17monthly deficit" shall be equal to the difference between the
18average monthly claims for payment by the fund and the average
19monthly revenues deposited into the fund, excluding payments
20made pursuant to this paragraph.
21 Beginning July 1, 2015, of the remainder of the moneys
22received by the Department under the Use Tax Act, this Act, the
23Service Occupation Tax Act, and the Retailers' Occupation Tax
24Act, each month the Department shall deposit $500,000 into the
25State Crime Laboratory Fund.
26 Of the remainder of the moneys received by the Department

SB1285 Engrossed- 80 -LRB100 08067 HLH 18153 b
1pursuant to this Act, (a) 1.75% thereof shall be paid into the
2Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3and after July 1, 1989, 3.8% thereof shall be paid into the
4Build Illinois Fund; provided, however, that if in any fiscal
5year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6may be, of the moneys received by the Department and required
7to be paid into the Build Illinois Fund pursuant to Section 3
8of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
9Act, Section 9 of the Service Use Tax Act, and Section 9 of the
10Service Occupation Tax Act, such Acts being hereinafter called
11the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
12may be, of moneys being hereinafter called the "Tax Act
13Amount", and (2) the amount transferred to the Build Illinois
14Fund from the State and Local Sales Tax Reform Fund shall be
15less than the Annual Specified Amount (as defined in Section 3
16of the Retailers' Occupation Tax Act), an amount equal to the
17difference shall be immediately paid into the Build Illinois
18Fund from other moneys received by the Department pursuant to
19the Tax Acts; and further provided, that if on the last
20business day of any month the sum of (1) the Tax Act Amount
21required to be deposited into the Build Illinois Bond Account
22in the Build Illinois Fund during such month and (2) the amount
23transferred during such month to the Build Illinois Fund from
24the State and Local Sales Tax Reform Fund shall have been less
25than 1/12 of the Annual Specified Amount, an amount equal to
26the difference shall be immediately paid into the Build

SB1285 Engrossed- 81 -LRB100 08067 HLH 18153 b
1Illinois Fund from other moneys received by the Department
2pursuant to the Tax Acts; and, further provided, that in no
3event shall the payments required under the preceding proviso
4result in aggregate payments into the Build Illinois Fund
5pursuant to this clause (b) for any fiscal year in excess of
6the greater of (i) the Tax Act Amount or (ii) the Annual
7Specified Amount for such fiscal year; and, further provided,
8that the amounts payable into the Build Illinois Fund under
9this clause (b) shall be payable only until such time as the
10aggregate amount on deposit under each trust indenture securing
11Bonds issued and outstanding pursuant to the Build Illinois
12Bond Act is sufficient, taking into account any future
13investment income, to fully provide, in accordance with such
14indenture, for the defeasance of or the payment of the
15principal of, premium, if any, and interest on the Bonds
16secured by such indenture and on any Bonds expected to be
17issued thereafter and all fees and costs payable with respect
18thereto, all as certified by the Director of the Bureau of the
19Budget (now Governor's Office of Management and Budget). If on
20the last business day of any month in which Bonds are
21outstanding pursuant to the Build Illinois Bond Act, the
22aggregate of the moneys deposited in the Build Illinois Bond
23Account in the Build Illinois Fund in such month shall be less
24than the amount required to be transferred in such month from
25the Build Illinois Bond Account to the Build Illinois Bond
26Retirement and Interest Fund pursuant to Section 13 of the

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1Build Illinois Bond Act, an amount equal to such deficiency
2shall be immediately paid from other moneys received by the
3Department pursuant to the Tax Acts to the Build Illinois Fund;
4provided, however, that any amounts paid to the Build Illinois
5Fund in any fiscal year pursuant to this sentence shall be
6deemed to constitute payments pursuant to clause (b) of the
7preceding sentence and shall reduce the amount otherwise
8payable for such fiscal year pursuant to clause (b) of the
9preceding sentence. The moneys received by the Department
10pursuant to this Act and required to be deposited into the
11Build Illinois Fund are subject to the pledge, claim and charge
12set forth in Section 12 of the Build Illinois Bond Act.
13 Subject to payment of amounts into the Build Illinois Fund
14as provided in the preceding paragraph or in any amendment
15thereto hereafter enacted, the following specified monthly
16installment of the amount requested in the certificate of the
17Chairman of the Metropolitan Pier and Exposition Authority
18provided under Section 8.25f of the State Finance Act, but not
19in excess of the sums designated as "Total Deposit", shall be
20deposited in the aggregate from collections under Section 9 of
21the Use Tax Act, Section 9 of the Service Use Tax Act, Section
229 of the Service Occupation Tax Act, and Section 3 of the
23Retailers' Occupation Tax Act into the McCormick Place
24Expansion Project Fund in the specified fiscal years.
25Fiscal YearTotal Deposit

SB1285 Engrossed- 83 -LRB100 08067 HLH 18153 b
11993 $0
21994 53,000,000
31995 58,000,000
41996 61,000,000
51997 64,000,000
61998 68,000,000
71999 71,000,000
82000 75,000,000
92001 80,000,000
102002 93,000,000
112003 99,000,000
122004103,000,000
132005108,000,000
142006113,000,000
152007119,000,000
162008126,000,000
172009132,000,000
182010139,000,000
192011146,000,000
202012153,000,000
212013161,000,000
222014170,000,000
232015179,000,000
242016189,000,000
252017199,000,000
262018210,000,000

SB1285 Engrossed- 84 -LRB100 08067 HLH 18153 b
12019221,000,000
22020233,000,000
32021246,000,000
42022260,000,000
52023275,000,000
62024 275,000,000
72025 275,000,000
82026 279,000,000
92027 292,000,000
102028 307,000,000
112029 322,000,000
122030 338,000,000
132031 350,000,000
142032 350,000,000
15and
16each fiscal year
17thereafter that bonds
18are outstanding under
19Section 13.2 of the
20Metropolitan Pier and
21Exposition Authority Act,
22but not after fiscal year 2060.
23 Beginning July 20, 1993 and in each month of each fiscal
24year thereafter, one-eighth of the amount requested in the
25certificate of the Chairman of the Metropolitan Pier and
26Exposition Authority for that fiscal year, less the amount

SB1285 Engrossed- 85 -LRB100 08067 HLH 18153 b
1deposited into the McCormick Place Expansion Project Fund by
2the State Treasurer in the respective month under subsection
3(g) of Section 13 of the Metropolitan Pier and Exposition
4Authority Act, plus cumulative deficiencies in the deposits
5required under this Section for previous months and years,
6shall be deposited into the McCormick Place Expansion Project
7Fund, until the full amount requested for the fiscal year, but
8not in excess of the amount specified above as "Total Deposit",
9has been deposited.
10 Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning July 1, 1993 and ending on September 30,
142013, the Department shall each month pay into the Illinois Tax
15Increment Fund 0.27% of 80% of the net revenue realized for the
16preceding month from the 6.25% general rate on the selling
17price of tangible personal property.
18 Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning with the receipt of the first report of
22taxes paid by an eligible business and continuing for a 25-year
23period, the Department shall each month pay into the Energy
24Infrastructure Fund 80% of the net revenue realized from the
256.25% general rate on the selling price of Illinois-mined coal
26that was sold to an eligible business. For purposes of this

SB1285 Engrossed- 86 -LRB100 08067 HLH 18153 b
1paragraph, the term "eligible business" means a new electric
2generating facility certified pursuant to Section 605-332 of
3the Department of Commerce and Economic Opportunity Law of the
4Civil Administrative Code of Illinois.
5 Subject to payment of amounts into the Build Illinois Fund,
6the McCormick Place Expansion Project Fund, the Illinois Tax
7Increment Fund, and the Energy Infrastructure Fund pursuant to
8the preceding paragraphs or in any amendments to this Section
9hereafter enacted, beginning on the first day of the first
10calendar month to occur on or after the effective date of this
11amendatory Act of the 98th General Assembly, each month, from
12the collections made under Section 9 of the Use Tax Act,
13Section 9 of the Service Use Tax Act, Section 9 of the Service
14Occupation Tax Act, and Section 3 of the Retailers' Occupation
15Tax Act, the Department shall pay into the Tax Compliance and
16Administration Fund, to be used, subject to appropriation, to
17fund additional auditors and compliance personnel at the
18Department of Revenue, an amount equal to 1/12 of 5% of 80% of
19the cash receipts collected during the preceding fiscal year by
20the Audit Bureau of the Department under the Use Tax Act, the
21Service Use Tax Act, the Service Occupation Tax Act, the
22Retailers' Occupation Tax Act, and associated local occupation
23and use taxes administered by the Department.
24 Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% thereof shall be paid into the
26General Revenue Fund of the State Treasury and 25% shall be

SB1285 Engrossed- 87 -LRB100 08067 HLH 18153 b
1reserved in a special account and used only for the transfer to
2the Common School Fund as part of the monthly transfer from the
3General Revenue Fund in accordance with Section 8a of the State
4Finance Act.
5 As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12 Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1798-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1898-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
198-19-16.)
20 Section 40. The Service Occupation Tax Act is amended by
21changing Sections 3-5.5 and 9 as follows:
22 (35 ILCS 115/3-5.5)
23 Sec. 3-5.5. Food and drugs sold by not-for-profit
24organizations; exemption. The Department shall not collect the

SB1285 Engrossed- 88 -LRB100 08067 HLH 18153 b
11% tax imposed under this Act on sales of tangible personal
2property (including but not limited to, food for human
3consumption that is to be consumed off the premises where it is
4sold (other than alcoholic beverages, soft drinks, and food
5that has been prepared for immediate consumption) and
6prescription and nonprescription medicines, drugs, medical
7appliances, products classified as Class III medical devices by
8the United States Food and Drug Administration that are used
9for cancer treatment pursuant to a prescription, as well as any
10accessories and components related to those devices,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a person with a disability, and insulin, urine
13testing materials, syringes, and needles used by diabetics, for
14human use) from any not-for-profit organization, that sells
15food in a food distribution program at a price below the retail
16cost of the food to purchasers who, as a condition of
17participation in the program, are required to perform community
18service, located in a county or municipality that notifies the
19Department, in writing, that the county or municipality does
20not want the tax to be collected from any of such organizations
21located in the county or municipality.
22(Source: P.A. 88-374.)
23 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
24 Sec. 9. Each serviceman required or authorized to collect
25the tax herein imposed shall pay to the Department the amount

SB1285 Engrossed- 89 -LRB100 08067 HLH 18153 b
1of such tax at the time when he is required to file his return
2for the period during which such tax was collectible, less a
3discount of 2.1% prior to January 1, 1990, and 1.75% on and
4after January 1, 1990, or $5 per calendar year, whichever is
5greater, which is allowed to reimburse the serviceman for
6expenses incurred in collecting the tax, keeping records,
7preparing and filing returns, remitting the tax and supplying
8data to the Department on request. The Department may disallow
9the discount for servicemen whose certificate of registration
10is revoked at the time the return is filed, but only if the
11Department's decision to revoke the certificate of
12registration has become final.
13 Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the serviceman, in collecting the tax may collect, for
18each tax return period, only the tax applicable to the part of
19the selling price actually received during such tax return
20period.
21 Except as provided hereinafter in this Section, on or
22before the twentieth day of each calendar month, such
23serviceman shall file a return for the preceding calendar month
24in accordance with reasonable rules and regulations to be
25promulgated by the Department of Revenue. Such return shall be
26filed on a form prescribed by the Department and shall contain

SB1285 Engrossed- 90 -LRB100 08067 HLH 18153 b
1such information as the Department may reasonably require.
2 The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9 1. The name of the seller;
10 2. The address of the principal place of business from
11 which he engages in business as a serviceman in this State;
12 3. The total amount of taxable receipts received by him
13 during the preceding calendar month, including receipts
14 from charge and time sales, but less all deductions allowed
15 by law;
16 4. The amount of credit provided in Section 2d of this
17 Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the Department
21 may require.
22 If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26 Prior to October 1, 2003, and on and after September 1,

SB1285 Engrossed- 91 -LRB100 08067 HLH 18153 b
12004 a serviceman may accept a Manufacturer's Purchase Credit
2certification from a purchaser in satisfaction of Service Use
3Tax as provided in Section 3-70 of the Service Use Tax Act if
4the purchaser provides the appropriate documentation as
5required by Section 3-70 of the Service Use Tax Act. A
6Manufacturer's Purchase Credit certification, accepted prior
7to October 1, 2003 or on or after September 1, 2004 by a
8serviceman as provided in Section 3-70 of the Service Use Tax
9Act, may be used by that serviceman to satisfy Service
10Occupation Tax liability in the amount claimed in the
11certification, not to exceed 6.25% of the receipts subject to
12tax from a qualifying purchase. A Manufacturer's Purchase
13Credit reported on any original or amended return filed under
14this Act after October 20, 2003 for reporting periods prior to
15September 1, 2004 shall be disallowed. Manufacturer's Purchase
16Credit reported on annual returns due on or after January 1,
172005 will be disallowed for periods prior to September 1, 2004.
18No Manufacturer's Purchase Credit may be used after September
1930, 2003 through August 31, 2004 to satisfy any tax liability
20imposed under this Act, including any audit liability.
21 If the serviceman's average monthly tax liability to the
22Department does not exceed $200, the Department may authorize
23his returns to be filed on a quarter annual basis, with the
24return for January, February and March of a given year being
25due by April 20 of such year; with the return for April, May
26and June of a given year being due by July 20 of such year; with

SB1285 Engrossed- 92 -LRB100 08067 HLH 18153 b
1the return for July, August and September of a given year being
2due by October 20 of such year, and with the return for
3October, November and December of a given year being due by
4January 20 of the following year.
5 If the serviceman's average monthly tax liability to the
6Department does not exceed $50, the Department may authorize
7his returns to be filed on an annual basis, with the return for
8a given year being due by January 20 of the following year.
9 Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as monthly
11returns.
12 Notwithstanding any other provision in this Act concerning
13the time within which a serviceman may file his return, in the
14case of any serviceman who ceases to engage in a kind of
15business which makes him responsible for filing returns under
16this Act, such serviceman shall file a final return under this
17Act with the Department not more than 1 month after
18discontinuing such business.
19 Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1995, a taxpayer who has
26an average monthly tax liability of $50,000 or more shall make

SB1285 Engrossed- 93 -LRB100 08067 HLH 18153 b
1all payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 2000, a taxpayer who has
3an annual tax liability of $200,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. The term "annual tax liability" shall be the
6sum of the taxpayer's liabilities under this Act, and under all
7other State and local occupation and use tax laws administered
8by the Department, for the immediately preceding calendar year.
9The term "average monthly tax liability" means the sum of the
10taxpayer's liabilities under this Act, and under all other
11State and local occupation and use tax laws administered by the
12Department, for the immediately preceding calendar year
13divided by 12. Beginning on October 1, 2002, a taxpayer who has
14a tax liability in the amount set forth in subsection (b) of
15Section 2505-210 of the Department of Revenue Law shall make
16all payments required by rules of the Department by electronic
17funds transfer.
18 Before August 1 of each year beginning in 1993, the
19Department shall notify all taxpayers required to make payments
20by electronic funds transfer. All taxpayers required to make
21payments by electronic funds transfer shall make those payments
22for a minimum of one year beginning on October 1.
23 Any taxpayer not required to make payments by electronic
24funds transfer may make payments by electronic funds transfer
25with the permission of the Department.
26 All taxpayers required to make payment by electronic funds

SB1285 Engrossed- 94 -LRB100 08067 HLH 18153 b
1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those payments
3in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7 Where a serviceman collects the tax with respect to the
8selling price of tangible personal property which he sells and
9the purchaser thereafter returns such tangible personal
10property and the serviceman refunds the selling price thereof
11to the purchaser, such serviceman shall also refund, to the
12purchaser, the tax so collected from the purchaser. When filing
13his return for the period in which he refunds such tax to the
14purchaser, the serviceman may deduct the amount of the tax so
15refunded by him to the purchaser from any other Service
16Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
17Use Tax which such serviceman may be required to pay or remit
18to the Department, as shown by such return, provided that the
19amount of the tax to be deducted shall previously have been
20remitted to the Department by such serviceman. If the
21serviceman shall not previously have remitted the amount of
22such tax to the Department, he shall be entitled to no
23deduction hereunder upon refunding such tax to the purchaser.
24 If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable servicemen, who are required to file

SB1285 Engrossed- 95 -LRB100 08067 HLH 18153 b
1returns hereunder and also under the Retailers' Occupation Tax
2Act, the Use Tax Act or the Service Use Tax Act, to furnish all
3the return information required by all said Acts on the one
4form.
5 Where the serviceman has more than one business registered
6with the Department under separate registrations hereunder,
7such serviceman shall file separate returns for each registered
8business.
9 Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund the revenue realized for
11the preceding month from the 1% tax on sales of food for human
12consumption that which is to be consumed off the premises where
13it is sold (other than alcoholic beverages, soft drinks and
14food that which has been prepared for immediate consumption)
15and prescription and nonprescription medicines, drugs, medical
16appliances, products classified as Class III medical devices by
17the United States Food and Drug Administration that are used
18for cancer treatment pursuant to a prescription, as well as any
19accessories and components related to those devices,
20modifications to a motor vehicle for the purpose of rendering
21it usable by a person with a disability, and insulin, urine
22testing materials, syringes and needles used by diabetics, for
23human use.
24 Beginning January 1, 1990, each month the Department shall
25pay into the County and Mass Transit District Fund 4% of the
26revenue realized for the preceding month from the 6.25% general

SB1285 Engrossed- 96 -LRB100 08067 HLH 18153 b
1rate.
2 Beginning August 1, 2000, each month the Department shall
3pay into the County and Mass Transit District Fund 20% of the
4net revenue realized for the preceding month from the 1.25%
5rate on the selling price of motor fuel and gasohol.
6 Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the revenue
8realized for the preceding month from the 6.25% general rate on
9transfers of tangible personal property.
10 Beginning August 1, 2000, each month the Department shall
11pay into the Local Government Tax Fund 80% of the net revenue
12realized for the preceding month from the 1.25% rate on the
13selling price of motor fuel and gasohol.
14 Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21 Beginning July 1, 2013, each month the Department shall pay
22into the Underground Storage Tank Fund from the proceeds
23collected under this Act, the Use Tax Act, the Service Use Tax
24Act, and the Retailers' Occupation Tax Act an amount equal to
25the average monthly deficit in the Underground Storage Tank
26Fund during the prior year, as certified annually by the

SB1285 Engrossed- 97 -LRB100 08067 HLH 18153 b
1Illinois Environmental Protection Agency, but the total
2payment into the Underground Storage Tank Fund under this Act,
3the Use Tax Act, the Service Use Tax Act, and the Retailers'
4Occupation Tax Act shall not exceed $18,000,000 in any State
5fiscal year. As used in this paragraph, the "average monthly
6deficit" shall be equal to the difference between the average
7monthly claims for payment by the fund and the average monthly
8revenues deposited into the fund, excluding payments made
9pursuant to this paragraph.
10 Beginning July 1, 2015, of the remainder of the moneys
11received by the Department under the Use Tax Act, the Service
12Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
13each month the Department shall deposit $500,000 into the State
14Crime Laboratory Fund.
15 Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

SB1285 Engrossed- 98 -LRB100 08067 HLH 18153 b
1may be, of moneys being hereinafter called the "Tax Act
2Amount", and (2) the amount transferred to the Build Illinois
3Fund from the State and Local Sales Tax Reform Fund shall be
4less than the Annual Specified Amount (as defined in Section 3
5of the Retailers' Occupation Tax Act), an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and further provided, that if on the last
9business day of any month the sum of (1) the Tax Act Amount
10required to be deposited into the Build Illinois Account in the
11Build Illinois Fund during such month and (2) the amount
12transferred during such month to the Build Illinois Fund from
13the State and Local Sales Tax Reform Fund shall have been less
14than 1/12 of the Annual Specified Amount, an amount equal to
15the difference shall be immediately paid into the Build
16Illinois Fund from other moneys received by the Department
17pursuant to the Tax Acts; and, further provided, that in no
18event shall the payments required under the preceding proviso
19result in aggregate payments into the Build Illinois Fund
20pursuant to this clause (b) for any fiscal year in excess of
21the greater of (i) the Tax Act Amount or (ii) the Annual
22Specified Amount for such fiscal year; and, further provided,
23that the amounts payable into the Build Illinois Fund under
24this clause (b) shall be payable only until such time as the
25aggregate amount on deposit under each trust indenture securing
26Bonds issued and outstanding pursuant to the Build Illinois

SB1285 Engrossed- 99 -LRB100 08067 HLH 18153 b
1Bond Act is sufficient, taking into account any future
2investment income, to fully provide, in accordance with such
3indenture, for the defeasance of or the payment of the
4principal of, premium, if any, and interest on the Bonds
5secured by such indenture and on any Bonds expected to be
6issued thereafter and all fees and costs payable with respect
7thereto, all as certified by the Director of the Bureau of the
8Budget (now Governor's Office of Management and Budget). If on
9the last business day of any month in which Bonds are
10outstanding pursuant to the Build Illinois Bond Act, the
11aggregate of the moneys deposited in the Build Illinois Bond
12Account in the Build Illinois Fund in such month shall be less
13than the amount required to be transferred in such month from
14the Build Illinois Bond Account to the Build Illinois Bond
15Retirement and Interest Fund pursuant to Section 13 of the
16Build Illinois Bond Act, an amount equal to such deficiency
17shall be immediately paid from other moneys received by the
18Department pursuant to the Tax Acts to the Build Illinois Fund;
19provided, however, that any amounts paid to the Build Illinois
20Fund in any fiscal year pursuant to this sentence shall be
21deemed to constitute payments pursuant to clause (b) of the
22preceding sentence and shall reduce the amount otherwise
23payable for such fiscal year pursuant to clause (b) of the
24preceding sentence. The moneys received by the Department
25pursuant to this Act and required to be deposited into the
26Build Illinois Fund are subject to the pledge, claim and charge

SB1285 Engrossed- 100 -LRB100 08067 HLH 18153 b
1set forth in Section 12 of the Build Illinois Bond Act.
2 Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of the sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993 $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

SB1285 Engrossed- 101 -LRB100 08067 HLH 18153 b
12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

SB1285 Engrossed- 102 -LRB100 08067 HLH 18153 b
12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12 Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25 Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois Tax
4Increment Fund 0.27% of 80% of the net revenue realized for the
5preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7 Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a 25-year
12period, the Department shall each month pay into the Energy
13Infrastructure Fund 80% of the net revenue realized from the
146.25% general rate on the selling price of Illinois-mined coal
15that was sold to an eligible business. For purposes of this
16paragraph, the term "eligible business" means a new electric
17generating facility certified pursuant to Section 605-332 of
18the Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20 Subject to payment of amounts into the Build Illinois Fund,
21the McCormick Place Expansion Project Fund, the Illinois Tax
22Increment Fund, and the Energy Infrastructure Fund pursuant to
23the preceding paragraphs or in any amendments to this Section
24hereafter enacted, beginning on the first day of the first
25calendar month to occur on or after the effective date of this
26amendatory Act of the 98th General Assembly, each month, from

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1the collections made under Section 9 of the Use Tax Act,
2Section 9 of the Service Use Tax Act, Section 9 of the Service
3Occupation Tax Act, and Section 3 of the Retailers' Occupation
4Tax Act, the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13 Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% shall be paid into the General
15Revenue Fund of the State Treasury and 25% shall be reserved in
16a special account and used only for the transfer to the Common
17School Fund as part of the monthly transfer from the General
18Revenue Fund in accordance with Section 8a of the State Finance
19Act.
20 The Department may, upon separate written notice to a
21taxpayer, require the taxpayer to prepare and file with the
22Department on a form prescribed by the Department within not
23less than 60 days after receipt of the notice an annual
24information return for the tax year specified in the notice.
25Such annual return to the Department shall include a statement
26of gross receipts as shown by the taxpayer's last Federal

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1income tax return. If the total receipts of the business as
2reported in the Federal income tax return do not agree with the
3gross receipts reported to the Department of Revenue for the
4same period, the taxpayer shall attach to his annual return a
5schedule showing a reconciliation of the 2 amounts and the
6reasons for the difference. The taxpayer's annual return to the
7Department shall also disclose the cost of goods sold by the
8taxpayer during the year covered by such return, opening and
9closing inventories of such goods for such year, cost of goods
10used from stock or taken from stock and given away by the
11taxpayer during such year, pay roll information of the
12taxpayer's business during such year and any additional
13reasonable information which the Department deems would be
14helpful in determining the accuracy of the monthly, quarterly
15or annual returns filed by such taxpayer as hereinbefore
16provided for in this Section.
17 If the annual information return required by this Section
18is not filed when and as required, the taxpayer shall be liable
19as follows:
20 (i) Until January 1, 1994, the taxpayer shall be liable
21 for a penalty equal to 1/6 of 1% of the tax due from such
22 taxpayer under this Act during the period to be covered by
23 the annual return for each month or fraction of a month
24 until such return is filed as required, the penalty to be
25 assessed and collected in the same manner as any other
26 penalty provided for in this Act.

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1 (ii) On and after January 1, 1994, the taxpayer shall
2 be liable for a penalty as described in Section 3-4 of the
3 Uniform Penalty and Interest Act.
4 The chief executive officer, proprietor, owner or highest
5ranking manager shall sign the annual return to certify the
6accuracy of the information contained therein. Any person who
7willfully signs the annual return containing false or
8inaccurate information shall be guilty of perjury and punished
9accordingly. The annual return form prescribed by the
10Department shall include a warning that the person signing the
11return may be liable for perjury.
12 The foregoing portion of this Section concerning the filing
13of an annual information return shall not apply to a serviceman
14who is not required to file an income tax return with the
15United States Government.
16 As soon as possible after the first day of each month, upon
17certification of the Department of Revenue, the Comptroller
18shall order transferred and the Treasurer shall transfer from
19the General Revenue Fund to the Motor Fuel Tax Fund an amount
20equal to 1.7% of 80% of the net revenue realized under this Act
21for the second preceding month. Beginning April 1, 2000, this
22transfer is no longer required and shall not be made.
23 Net revenue realized for a month shall be the revenue
24collected by the State pursuant to this Act, less the amount
25paid out during that month as refunds to taxpayers for
26overpayment of liability.

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1 For greater simplicity of administration, it shall be
2permissible for manufacturers, importers and wholesalers whose
3products are sold by numerous servicemen in Illinois, and who
4wish to do so, to assume the responsibility for accounting and
5paying to the Department all tax accruing under this Act with
6respect to such sales, if the servicemen who are affected do
7not make written objection to the Department to this
8arrangement.
9(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1098-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1198-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
128-19-16.)
13 Section 45. The Retailers' Occupation Tax Act is amended by
14changing Sections 2-5.5, 3, and 5j as follows:
15 (35 ILCS 120/2-5.5)
16 Sec. 2-5.5. Food and drugs sold by not-for-profit
17organizations; exemption. The Department shall not collect the
181% tax imposed under this Act on sales of tangible personal
19property (including but not limited to, food for human
20consumption that is to be consumed off the premises where it is
21sold (other than alcoholic beverages, soft drinks, and food
22that has been prepared for immediate consumption) and
23prescription and nonprescription medicines, drugs, medical
24appliances, products classified as Class III medical devices by

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1the United States Food and Drug Administration that are used
2for cancer treatment pursuant to a prescription, as well as any
3accessories and components related to those devices,
4modifications to a motor vehicle for the purpose of rendering
5it usable by a person with a disability, and insulin, urine
6testing materials, syringes, and needles used by diabetics, for
7human use) from any not-for-profit organization, that sells
8food in a food distribution program at a price below the retail
9cost of the food to purchasers who, as a condition of
10participation in the program, are required to perform community
11service, located in a county or municipality that notifies the
12Department, in writing, that the county or municipality does
13not want the tax to be collected from any of such organizations
14located in the county or municipality.
15(Source: P.A. 88-374.)
16 (35 ILCS 120/3) (from Ch. 120, par. 442)
17 Sec. 3. Except as provided in this Section, on or before
18the twentieth day of each calendar month, every person engaged
19in the business of selling tangible personal property at retail
20in this State during the preceding calendar month shall file a
21return with the Department, stating:
22 1. The name of the seller;
23 2. His residence address and the address of his
24 principal place of business and the address of the
25 principal place of business (if that is a different

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1 address) from which he engages in the business of selling
2 tangible personal property at retail in this State;
3 3. Total amount of receipts received by him during the
4 preceding calendar month or quarter, as the case may be,
5 from sales of tangible personal property, and from services
6 furnished, by him during such preceding calendar month or
7 quarter;
8 4. Total amount received by him during the preceding
9 calendar month or quarter on charge and time sales of
10 tangible personal property, and from services furnished,
11 by him prior to the month or quarter for which the return
12 is filed;
13 5. Deductions allowed by law;
14 6. Gross receipts which were received by him during the
15 preceding calendar month or quarter and upon the basis of
16 which the tax is imposed;
17 7. The amount of credit provided in Section 2d of this
18 Act;
19 8. The amount of tax due;
20 9. The signature of the taxpayer; and
21 10. Such other reasonable information as the
22 Department may require.
23 If a taxpayer fails to sign a return within 30 days after
24the proper notice and demand for signature by the Department,
25the return shall be considered valid and any amount shown to be
26due on the return shall be deemed assessed.

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1 Each return shall be accompanied by the statement of
2prepaid tax issued pursuant to Section 2e for which credit is
3claimed.
4 Prior to October 1, 2003, and on and after September 1,
52004 a retailer may accept a Manufacturer's Purchase Credit
6certification from a purchaser in satisfaction of Use Tax as
7provided in Section 3-85 of the Use Tax Act if the purchaser
8provides the appropriate documentation as required by Section
93-85 of the Use Tax Act. A Manufacturer's Purchase Credit
10certification, accepted by a retailer prior to October 1, 2003
11and on and after September 1, 2004 as provided in Section 3-85
12of the Use Tax Act, may be used by that retailer to satisfy
13Retailers' Occupation Tax liability in the amount claimed in
14the certification, not to exceed 6.25% of the receipts subject
15to tax from a qualifying purchase. A Manufacturer's Purchase
16Credit reported on any original or amended return filed under
17this Act after October 20, 2003 for reporting periods prior to
18September 1, 2004 shall be disallowed. Manufacturer's
19Purchaser Credit reported on annual returns due on or after
20January 1, 2005 will be disallowed for periods prior to
21September 1, 2004. No Manufacturer's Purchase Credit may be
22used after September 30, 2003 through August 31, 2004 to
23satisfy any tax liability imposed under this Act, including any
24audit liability.
25 The Department may require returns to be filed on a
26quarterly basis. If so required, a return for each calendar

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1quarter shall be filed on or before the twentieth day of the
2calendar month following the end of such calendar quarter. The
3taxpayer shall also file a return with the Department for each
4of the first two months of each calendar quarter, on or before
5the twentieth day of the following calendar month, stating:
6 1. The name of the seller;
7 2. The address of the principal place of business from
8 which he engages in the business of selling tangible
9 personal property at retail in this State;
10 3. The total amount of taxable receipts received by him
11 during the preceding calendar month from sales of tangible
12 personal property by him during such preceding calendar
13 month, including receipts from charge and time sales, but
14 less all deductions allowed by law;
15 4. The amount of credit provided in Section 2d of this
16 Act;
17 5. The amount of tax due; and
18 6. Such other reasonable information as the Department
19 may require.
20 Beginning on October 1, 2003, any person who is not a
21licensed distributor, importing distributor, or manufacturer,
22as defined in the Liquor Control Act of 1934, but is engaged in
23the business of selling, at retail, alcoholic liquor shall file
24a statement with the Department of Revenue, in a format and at
25a time prescribed by the Department, showing the total amount
26paid for alcoholic liquor purchased during the preceding month

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1and such other information as is reasonably required by the
2Department. The Department may adopt rules to require that this
3statement be filed in an electronic or telephonic format. Such
4rules may provide for exceptions from the filing requirements
5of this paragraph. For the purposes of this paragraph, the term
6"alcoholic liquor" shall have the meaning prescribed in the
7Liquor Control Act of 1934.
8 Beginning on October 1, 2003, every distributor, importing
9distributor, and manufacturer of alcoholic liquor as defined in
10the Liquor Control Act of 1934, shall file a statement with the
11Department of Revenue, no later than the 10th day of the month
12for the preceding month during which transactions occurred, by
13electronic means, showing the total amount of gross receipts
14from the sale of alcoholic liquor sold or distributed during
15the preceding month to purchasers; identifying the purchaser to
16whom it was sold or distributed; the purchaser's tax
17registration number; and such other information reasonably
18required by the Department. A distributor, importing
19distributor, or manufacturer of alcoholic liquor must
20personally deliver, mail, or provide by electronic means to
21each retailer listed on the monthly statement a report
22containing a cumulative total of that distributor's, importing
23distributor's, or manufacturer's total sales of alcoholic
24liquor to that retailer no later than the 10th day of the month
25for the preceding month during which the transaction occurred.
26The distributor, importing distributor, or manufacturer shall

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1notify the retailer as to the method by which the distributor,
2importing distributor, or manufacturer will provide the sales
3information. If the retailer is unable to receive the sales
4information by electronic means, the distributor, importing
5distributor, or manufacturer shall furnish the sales
6information by personal delivery or by mail. For purposes of
7this paragraph, the term "electronic means" includes, but is
8not limited to, the use of a secure Internet website, e-mail,
9or facsimile.
10 If a total amount of less than $1 is payable, refundable or
11creditable, such amount shall be disregarded if it is less than
1250 cents and shall be increased to $1 if it is 50 cents or more.
13 Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1995, a taxpayer who has
20an average monthly tax liability of $50,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 2000, a taxpayer who has
23an annual tax liability of $200,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. The term "annual tax liability" shall be the
26sum of the taxpayer's liabilities under this Act, and under all

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1other State and local occupation and use tax laws administered
2by the Department, for the immediately preceding calendar year.
3The term "average monthly tax liability" shall be the sum of
4the taxpayer's liabilities under this Act, and under all other
5State and local occupation and use tax laws administered by the
6Department, for the immediately preceding calendar year
7divided by 12. Beginning on October 1, 2002, a taxpayer who has
8a tax liability in the amount set forth in subsection (b) of
9Section 2505-210 of the Department of Revenue Law shall make
10all payments required by rules of the Department by electronic
11funds transfer.
12 Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make payments
14by electronic funds transfer. All taxpayers required to make
15payments by electronic funds transfer shall make those payments
16for a minimum of one year beginning on October 1.
17 Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20 All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those payments
23in the manner authorized by the Department.
24 The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

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1 Any amount which is required to be shown or reported on any
2return or other document under this Act shall, if such amount
3is not a whole-dollar amount, be increased to the nearest
4whole-dollar amount in any case where the fractional part of a
5dollar is 50 cents or more, and decreased to the nearest
6whole-dollar amount where the fractional part of a dollar is
7less than 50 cents.
8 If the retailer is otherwise required to file a monthly
9return and if the retailer's average monthly tax liability to
10the Department does not exceed $200, the Department may
11authorize his returns to be filed on a quarter annual basis,
12with the return for January, February and March of a given year
13being due by April 20 of such year; with the return for April,
14May and June of a given year being due by July 20 of such year;
15with the return for July, August and September of a given year
16being due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19 If the retailer is otherwise required to file a monthly or
20quarterly return and if the retailer's average monthly tax
21liability with the Department does not exceed $50, the
22Department may authorize his returns to be filed on an annual
23basis, with the return for a given year being due by January 20
24of the following year.
25 Such quarter annual and annual returns, as to form and
26substance, shall be subject to the same requirements as monthly

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1returns.
2 Notwithstanding any other provision in this Act concerning
3the time within which a retailer may file his return, in the
4case of any retailer who ceases to engage in a kind of business
5which makes him responsible for filing returns under this Act,
6such retailer shall file a final return under this Act with the
7Department not more than one month after discontinuing such
8business.
9 Where the same person has more than one business registered
10with the Department under separate registrations under this
11Act, such person may not file each return that is due as a
12single return covering all such registered businesses, but
13shall file separate returns for each such registered business.
14 In addition, with respect to motor vehicles, watercraft,
15aircraft, and trailers that are required to be registered with
16an agency of this State, every retailer selling this kind of
17tangible personal property shall file, with the Department,
18upon a form to be prescribed and supplied by the Department, a
19separate return for each such item of tangible personal
20property which the retailer sells, except that if, in the same
21transaction, (i) a retailer of aircraft, watercraft, motor
22vehicles or trailers transfers more than one aircraft,
23watercraft, motor vehicle or trailer to another aircraft,
24watercraft, motor vehicle retailer or trailer retailer for the
25purpose of resale or (ii) a retailer of aircraft, watercraft,
26motor vehicles, or trailers transfers more than one aircraft,

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1watercraft, motor vehicle, or trailer to a purchaser for use as
2a qualifying rolling stock as provided in Section 2-5 of this
3Act, then that seller may report the transfer of all aircraft,
4watercraft, motor vehicles or trailers involved in that
5transaction to the Department on the same uniform
6invoice-transaction reporting return form. For purposes of
7this Section, "watercraft" means a Class 2, Class 3, or Class 4
8watercraft as defined in Section 3-2 of the Boat Registration
9and Safety Act, a personal watercraft, or any boat equipped
10with an inboard motor.
11 Any retailer who sells only motor vehicles, watercraft,
12aircraft, or trailers that are required to be registered with
13an agency of this State, so that all retailers' occupation tax
14liability is required to be reported, and is reported, on such
15transaction reporting returns and who is not otherwise required
16to file monthly or quarterly returns, need not file monthly or
17quarterly returns. However, those retailers shall be required
18to file returns on an annual basis.
19 The transaction reporting return, in the case of motor
20vehicles or trailers that are required to be registered with an
21agency of this State, shall be the same document as the Uniform
22Invoice referred to in Section 5-402 of The Illinois Vehicle
23Code and must show the name and address of the seller; the name
24and address of the purchaser; the amount of the selling price
25including the amount allowed by the retailer for traded-in
26property, if any; the amount allowed by the retailer for the

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1traded-in tangible personal property, if any, to the extent to
2which Section 1 of this Act allows an exemption for the value
3of traded-in property; the balance payable after deducting such
4trade-in allowance from the total selling price; the amount of
5tax due from the retailer with respect to such transaction; the
6amount of tax collected from the purchaser by the retailer on
7such transaction (or satisfactory evidence that such tax is not
8due in that particular instance, if that is claimed to be the
9fact); the place and date of the sale; a sufficient
10identification of the property sold; such other information as
11is required in Section 5-402 of The Illinois Vehicle Code, and
12such other information as the Department may reasonably
13require.
14 The transaction reporting return in the case of watercraft
15or aircraft must show the name and address of the seller; the
16name and address of the purchaser; the amount of the selling
17price including the amount allowed by the retailer for
18traded-in property, if any; the amount allowed by the retailer
19for the traded-in tangible personal property, if any, to the
20extent to which Section 1 of this Act allows an exemption for
21the value of traded-in property; the balance payable after
22deducting such trade-in allowance from the total selling price;
23the amount of tax due from the retailer with respect to such
24transaction; the amount of tax collected from the purchaser by
25the retailer on such transaction (or satisfactory evidence that
26such tax is not due in that particular instance, if that is

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1claimed to be the fact); the place and date of the sale, a
2sufficient identification of the property sold, and such other
3information as the Department may reasonably require.
4 Such transaction reporting return shall be filed not later
5than 20 days after the day of delivery of the item that is
6being sold, but may be filed by the retailer at any time sooner
7than that if he chooses to do so. The transaction reporting
8return and tax remittance or proof of exemption from the
9Illinois use tax may be transmitted to the Department by way of
10the State agency with which, or State officer with whom the
11tangible personal property must be titled or registered (if
12titling or registration is required) if the Department and such
13agency or State officer determine that this procedure will
14expedite the processing of applications for title or
15registration.
16 With each such transaction reporting return, the retailer
17shall remit the proper amount of tax due (or shall submit
18satisfactory evidence that the sale is not taxable if that is
19the case), to the Department or its agents, whereupon the
20Department shall issue, in the purchaser's name, a use tax
21receipt (or a certificate of exemption if the Department is
22satisfied that the particular sale is tax exempt) which such
23purchaser may submit to the agency with which, or State officer
24with whom, he must title or register the tangible personal
25property that is involved (if titling or registration is
26required) in support of such purchaser's application for an

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1Illinois certificate or other evidence of title or registration
2to such tangible personal property.
3 No retailer's failure or refusal to remit tax under this
4Act precludes a user, who has paid the proper tax to the
5retailer, from obtaining his certificate of title or other
6evidence of title or registration (if titling or registration
7is required) upon satisfying the Department that such user has
8paid the proper tax (if tax is due) to the retailer. The
9Department shall adopt appropriate rules to carry out the
10mandate of this paragraph.
11 If the user who would otherwise pay tax to the retailer
12wants the transaction reporting return filed and the payment of
13the tax or proof of exemption made to the Department before the
14retailer is willing to take these actions and such user has not
15paid the tax to the retailer, such user may certify to the fact
16of such delay by the retailer and may (upon the Department
17being satisfied of the truth of such certification) transmit
18the information required by the transaction reporting return
19and the remittance for tax or proof of exemption directly to
20the Department and obtain his tax receipt or exemption
21determination, in which event the transaction reporting return
22and tax remittance (if a tax payment was required) shall be
23credited by the Department to the proper retailer's account
24with the Department, but without the 2.1% or 1.75% discount
25provided for in this Section being allowed. When the user pays
26the tax directly to the Department, he shall pay the tax in the

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1same amount and in the same form in which it would be remitted
2if the tax had been remitted to the Department by the retailer.
3 Refunds made by the seller during the preceding return
4period to purchasers, on account of tangible personal property
5returned to the seller, shall be allowed as a deduction under
6subdivision 5 of his monthly or quarterly return, as the case
7may be, in case the seller had theretofore included the
8receipts from the sale of such tangible personal property in a
9return filed by him and had paid the tax imposed by this Act
10with respect to such receipts.
11 Where the seller is a corporation, the return filed on
12behalf of such corporation shall be signed by the president,
13vice-president, secretary or treasurer or by the properly
14accredited agent of such corporation.
15 Where the seller is a limited liability company, the return
16filed on behalf of the limited liability company shall be
17signed by a manager, member, or properly accredited agent of
18the limited liability company.
19 Except as provided in this Section, the retailer filing the
20return under this Section shall, at the time of filing such
21return, pay to the Department the amount of tax imposed by this
22Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
23on and after January 1, 1990, or $5 per calendar year,
24whichever is greater, which is allowed to reimburse the
25retailer for the expenses incurred in keeping records,
26preparing and filing returns, remitting the tax and supplying

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1data to the Department on request. Any prepayment made pursuant
2to Section 2d of this Act shall be included in the amount on
3which such 2.1% or 1.75% discount is computed. In the case of
4retailers who report and pay the tax on a transaction by
5transaction basis, as provided in this Section, such discount
6shall be taken with each such tax remittance instead of when
7such retailer files his periodic return. The Department may
8disallow the discount for retailers whose certificate of
9registration is revoked at the time the return is filed, but
10only if the Department's decision to revoke the certificate of
11registration has become final.
12 Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Use Tax
14Act, the Service Occupation Tax Act, and the Service Use Tax
15Act, excluding any liability for prepaid sales tax to be
16remitted in accordance with Section 2d of this Act, was $10,000
17or more during the preceding 4 complete calendar quarters, he
18shall file a return with the Department each month by the 20th
19day of the month next following the month during which such tax
20liability is incurred and shall make payments to the Department
21on or before the 7th, 15th, 22nd and last day of the month
22during which such liability is incurred. On and after October
231, 2000, if the taxpayer's average monthly tax liability to the
24Department under this Act, the Use Tax Act, the Service
25Occupation Tax Act, and the Service Use Tax Act, excluding any
26liability for prepaid sales tax to be remitted in accordance

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1with Section 2d of this Act, was $20,000 or more during the
2preceding 4 complete calendar quarters, he shall file a return
3with the Department each month by the 20th day of the month
4next following the month during which such tax liability is
5incurred and shall make payment to the Department on or before
6the 7th, 15th, 22nd and last day of the month during which such
7liability is incurred. If the month during which such tax
8liability is incurred began prior to January 1, 1985, each
9payment shall be in an amount equal to 1/4 of the taxpayer's
10actual liability for the month or an amount set by the
11Department not to exceed 1/4 of the average monthly liability
12of the taxpayer to the Department for the preceding 4 complete
13calendar quarters (excluding the month of highest liability and
14the month of lowest liability in such 4 quarter period). If the
15month during which such tax liability is incurred begins on or
16after January 1, 1985 and prior to January 1, 1987, each
17payment shall be in an amount equal to 22.5% of the taxpayer's
18actual liability for the month or 27.5% of the taxpayer's
19liability for the same calendar month of the preceding year. If
20the month during which such tax liability is incurred begins on
21or after January 1, 1987 and prior to January 1, 1988, each
22payment shall be in an amount equal to 22.5% of the taxpayer's
23actual liability for the month or 26.25% of the taxpayer's
24liability for the same calendar month of the preceding year. If
25the month during which such tax liability is incurred begins on
26or after January 1, 1988, and prior to January 1, 1989, or

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1begins on or after January 1, 1996, each payment shall be in an
2amount equal to 22.5% of the taxpayer's actual liability for
3the month or 25% of the taxpayer's liability for the same
4calendar month of the preceding year. If the month during which
5such tax liability is incurred begins on or after January 1,
61989, and prior to January 1, 1996, each payment shall be in an
7amount equal to 22.5% of the taxpayer's actual liability for
8the month or 25% of the taxpayer's liability for the same
9calendar month of the preceding year or 100% of the taxpayer's
10actual liability for the quarter monthly reporting period. The
11amount of such quarter monthly payments shall be credited
12against the final tax liability of the taxpayer's return for
13that month. Before October 1, 2000, once applicable, the
14requirement of the making of quarter monthly payments to the
15Department by taxpayers having an average monthly tax liability
16of $10,000 or more as determined in the manner provided above
17shall continue until such taxpayer's average monthly liability
18to the Department during the preceding 4 complete calendar
19quarters (excluding the month of highest liability and the
20month of lowest liability) is less than $9,000, or until such
21taxpayer's average monthly liability to the Department as
22computed for each calendar quarter of the 4 preceding complete
23calendar quarter period is less than $10,000. However, if a
24taxpayer can show the Department that a substantial change in
25the taxpayer's business has occurred which causes the taxpayer
26to anticipate that his average monthly tax liability for the

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1reasonably foreseeable future will fall below the $10,000
2threshold stated above, then such taxpayer may petition the
3Department for a change in such taxpayer's reporting status. On
4and after October 1, 2000, once applicable, the requirement of
5the making of quarter monthly payments to the Department by
6taxpayers having an average monthly tax liability of $20,000 or
7more as determined in the manner provided above shall continue
8until such taxpayer's average monthly liability to the
9Department during the preceding 4 complete calendar quarters
10(excluding the month of highest liability and the month of
11lowest liability) is less than $19,000 or until such taxpayer's
12average monthly liability to the Department as computed for
13each calendar quarter of the 4 preceding complete calendar
14quarter period is less than $20,000. However, if a taxpayer can
15show the Department that a substantial change in the taxpayer's
16business has occurred which causes the taxpayer to anticipate
17that his average monthly tax liability for the reasonably
18foreseeable future will fall below the $20,000 threshold stated
19above, then such taxpayer may petition the Department for a
20change in such taxpayer's reporting status. The Department
21shall change such taxpayer's reporting status unless it finds
22that such change is seasonal in nature and not likely to be
23long term. If any such quarter monthly payment is not paid at
24the time or in the amount required by this Section, then the
25taxpayer shall be liable for penalties and interest on the
26difference between the minimum amount due as a payment and the

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1amount of such quarter monthly payment actually and timely
2paid, except insofar as the taxpayer has previously made
3payments for that month to the Department in excess of the
4minimum payments previously due as provided in this Section.
5The Department shall make reasonable rules and regulations to
6govern the quarter monthly payment amount and quarter monthly
7payment dates for taxpayers who file on other than a calendar
8monthly basis.
9 The provisions of this paragraph apply before October 1,
102001. Without regard to whether a taxpayer is required to make
11quarter monthly payments as specified above, any taxpayer who
12is required by Section 2d of this Act to collect and remit
13prepaid taxes and has collected prepaid taxes which average in
14excess of $25,000 per month during the preceding 2 complete
15calendar quarters, shall file a return with the Department as
16required by Section 2f and shall make payments to the
17Department on or before the 7th, 15th, 22nd and last day of the
18month during which such liability is incurred. If the month
19during which such tax liability is incurred began prior to
20September 1, 1985 (the effective date of Public Act 84-221)
21this amendatory Act of 1985, each payment shall be in an amount
22not less than 22.5% of the taxpayer's actual liability under
23Section 2d. If the month during which such tax liability is
24incurred begins on or after January 1, 1986, each payment shall
25be in an amount equal to 22.5% of the taxpayer's actual
26liability for the month or 27.5% of the taxpayer's liability

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1for the same calendar month of the preceding calendar year. If
2the month during which such tax liability is incurred begins on
3or after January 1, 1987, each payment shall be in an amount
4equal to 22.5% of the taxpayer's actual liability for the month
5or 26.25% of the taxpayer's liability for the same calendar
6month of the preceding year. The amount of such quarter monthly
7payments shall be credited against the final tax liability of
8the taxpayer's return for that month filed under this Section
9or Section 2f, as the case may be. Once applicable, the
10requirement of the making of quarter monthly payments to the
11Department pursuant to this paragraph shall continue until such
12taxpayer's average monthly prepaid tax collections during the
13preceding 2 complete calendar quarters is $25,000 or less. If
14any such quarter monthly payment is not paid at the time or in
15the amount required, the taxpayer shall be liable for penalties
16and interest on such difference, except insofar as the taxpayer
17has previously made payments for that month in excess of the
18minimum payments previously due.
19 The provisions of this paragraph apply on and after October
201, 2001. Without regard to whether a taxpayer is required to
21make quarter monthly payments as specified above, any taxpayer
22who is required by Section 2d of this Act to collect and remit
23prepaid taxes and has collected prepaid taxes that average in
24excess of $20,000 per month during the preceding 4 complete
25calendar quarters shall file a return with the Department as
26required by Section 2f and shall make payments to the

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1Department on or before the 7th, 15th, 22nd and last day of the
2month during which the liability is incurred. Each payment
3shall be in an amount equal to 22.5% of the taxpayer's actual
4liability for the month or 25% of the taxpayer's liability for
5the same calendar month of the preceding year. The amount of
6the quarter monthly payments shall be credited against the
7final tax liability of the taxpayer's return for that month
8filed under this Section or Section 2f, as the case may be.
9Once applicable, the requirement of the making of quarter
10monthly payments to the Department pursuant to this paragraph
11shall continue until the taxpayer's average monthly prepaid tax
12collections during the preceding 4 complete calendar quarters
13(excluding the month of highest liability and the month of
14lowest liability) is less than $19,000 or until such taxpayer's
15average monthly liability to the Department as computed for
16each calendar quarter of the 4 preceding complete calendar
17quarters is less than $20,000. If any such quarter monthly
18payment is not paid at the time or in the amount required, the
19taxpayer shall be liable for penalties and interest on such
20difference, except insofar as the taxpayer has previously made
21payments for that month in excess of the minimum payments
22previously due.
23 If any payment provided for in this Section exceeds the
24taxpayer's liabilities under this Act, the Use Tax Act, the
25Service Occupation Tax Act and the Service Use Tax Act, as
26shown on an original monthly return, the Department shall, if

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1requested by the taxpayer, issue to the taxpayer a credit
2memorandum no later than 30 days after the date of payment. The
3credit evidenced by such credit memorandum may be assigned by
4the taxpayer to a similar taxpayer under this Act, the Use Tax
5Act, the Service Occupation Tax Act or the Service Use Tax Act,
6in accordance with reasonable rules and regulations to be
7prescribed by the Department. If no such request is made, the
8taxpayer may credit such excess payment against tax liability
9subsequently to be remitted to the Department under this Act,
10the Use Tax Act, the Service Occupation Tax Act or the Service
11Use Tax Act, in accordance with reasonable rules and
12regulations prescribed by the Department. If the Department
13subsequently determined that all or any part of the credit
14taken was not actually due to the taxpayer, the taxpayer's 2.1%
15and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
16of the difference between the credit taken and that actually
17due, and that taxpayer shall be liable for penalties and
18interest on such difference.
19 If a retailer of motor fuel is entitled to a credit under
20Section 2d of this Act which exceeds the taxpayer's liability
21to the Department under this Act for the month which the
22taxpayer is filing a return, the Department shall issue the
23taxpayer a credit memorandum for the excess.
24 Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund, a special fund in the
26State treasury which is hereby created, the net revenue

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1realized for the preceding month from the 1% tax on sales of
2food for human consumption that which is to be consumed off the
3premises where it is sold (other than alcoholic beverages, soft
4drinks and food that which has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances, products classified as Class III
7medical devices by the United States Food and Drug
8Administration that are used for cancer treatment pursuant to a
9prescription, as well as any accessories and components related
10to those devices, modifications to a motor vehicle for the
11purpose of rendering it usable by a person with a disability,
12and insulin, urine testing materials, syringes and needles used
13by diabetics, for human use.
14 Beginning January 1, 1990, each month the Department shall
15pay into the County and Mass Transit District Fund, a special
16fund in the State treasury which is hereby created, 4% of the
17net revenue realized for the preceding month from the 6.25%
18general rate.
19 Beginning August 1, 2000, each month the Department shall
20pay into the County and Mass Transit District Fund 20% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol. Beginning
23September 1, 2010, each month the Department shall pay into the
24County and Mass Transit District Fund 20% of the net revenue
25realized for the preceding month from the 1.25% rate on the
26selling price of sales tax holiday items.

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1 Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of tangible personal property.
5 Beginning August 1, 2000, each month the Department shall
6pay into the Local Government Tax Fund 80% of the net revenue
7realized for the preceding month from the 1.25% rate on the
8selling price of motor fuel and gasohol. Beginning September 1,
92010, each month the Department shall pay into the Local
10Government Tax Fund 80% of the net revenue realized for the
11preceding month from the 1.25% rate on the selling price of
12sales tax holiday items.
13 Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20 Beginning July 1, 2011, each month the Department shall pay
21into the Clean Air Act Permit Fund 80% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of sorbents used in Illinois in the process
24of sorbent injection as used to comply with the Environmental
25Protection Act or the federal Clean Air Act, but the total
26payment into the Clean Air Act Permit Fund under this Act and

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1the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
2 Beginning July 1, 2013, each month the Department shall pay
3into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Use Tax Act, the Service Use Tax
5Act, and the Service Occupation Tax Act an amount equal to the
6average monthly deficit in the Underground Storage Tank Fund
7during the prior year, as certified annually by the Illinois
8Environmental Protection Agency, but the total payment into the
9Underground Storage Tank Fund under this Act, the Use Tax Act,
10the Service Use Tax Act, and the Service Occupation Tax Act
11shall not exceed $18,000,000 in any State fiscal year. As used
12in this paragraph, the "average monthly deficit" shall be equal
13to the difference between the average monthly claims for
14payment by the fund and the average monthly revenues deposited
15into the fund, excluding payments made pursuant to this
16paragraph.
17 Beginning July 1, 2015, of the remainder of the moneys
18received by the Department under the Use Tax Act, the Service
19Use Tax Act, the Service Occupation Tax Act, and this Act, each
20month the Department shall deposit $500,000 into the State
21Crime Laboratory Fund.
22 Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

SB1285 Engrossed- 133 -LRB100 08067 HLH 18153 b
1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to this Act,
4Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
5Act, and Section 9 of the Service Occupation Tax Act, such Acts
6being hereinafter called the "Tax Acts" and such aggregate of
72.2% or 3.8%, as the case may be, of moneys being hereinafter
8called the "Tax Act Amount", and (2) the amount transferred to
9the Build Illinois Fund from the State and Local Sales Tax
10Reform Fund shall be less than the Annual Specified Amount (as
11hereinafter defined), an amount equal to the difference shall
12be immediately paid into the Build Illinois Fund from other
13moneys received by the Department pursuant to the Tax Acts; the
14"Annual Specified Amount" means the amounts specified below for
15fiscal years 1986 through 1993:
16Fiscal YearAnnual Specified Amount
171986$54,800,000
181987$76,650,000
191988$80,480,000
201989$88,510,000
211990$115,330,000
221991$145,470,000
231992$182,730,000
241993$206,520,000;
25and means the Certified Annual Debt Service Requirement (as
26defined in Section 13 of the Build Illinois Bond Act) or the

SB1285 Engrossed- 134 -LRB100 08067 HLH 18153 b
1Tax Act Amount, whichever is greater, for fiscal year 1994 and
2each fiscal year thereafter; and further provided, that if on
3the last business day of any month the sum of (1) the Tax Act
4Amount required to be deposited into the Build Illinois Bond
5Account in the Build Illinois Fund during such month and (2)
6the amount transferred to the Build Illinois Fund from the
7State and Local Sales Tax Reform Fund shall have been less than
81/12 of the Annual Specified Amount, an amount equal to the
9difference shall be immediately paid into the Build Illinois
10Fund from other moneys received by the Department pursuant to
11the Tax Acts; and, further provided, that in no event shall the
12payments required under the preceding proviso result in
13aggregate payments into the Build Illinois Fund pursuant to
14this clause (b) for any fiscal year in excess of the greater of
15(i) the Tax Act Amount or (ii) the Annual Specified Amount for
16such fiscal year. The amounts payable into the Build Illinois
17Fund under clause (b) of the first sentence in this paragraph
18shall be payable only until such time as the aggregate amount
19on deposit under each trust indenture securing Bonds issued and
20outstanding pursuant to the Build Illinois Bond Act is
21sufficient, taking into account any future investment income,
22to fully provide, in accordance with such indenture, for the
23defeasance of or the payment of the principal of, premium, if
24any, and interest on the Bonds secured by such indenture and on
25any Bonds expected to be issued thereafter and all fees and
26costs payable with respect thereto, all as certified by the

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1Director of the Bureau of the Budget (now Governor's Office of
2Management and Budget). If on the last business day of any
3month in which Bonds are outstanding pursuant to the Build
4Illinois Bond Act, the aggregate of moneys deposited in the
5Build Illinois Bond Account in the Build Illinois Fund in such
6month shall be less than the amount required to be transferred
7in such month from the Build Illinois Bond Account to the Build
8Illinois Bond Retirement and Interest Fund pursuant to Section
913 of the Build Illinois Bond Act, an amount equal to such
10deficiency shall be immediately paid from other moneys received
11by the Department pursuant to the Tax Acts to the Build
12Illinois Fund; provided, however, that any amounts paid to the
13Build Illinois Fund in any fiscal year pursuant to this
14sentence shall be deemed to constitute payments pursuant to
15clause (b) of the first sentence of this paragraph and shall
16reduce the amount otherwise payable for such fiscal year
17pursuant to that clause (b). The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22 Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

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1provided under Section 8.25f of the State Finance Act, but not
2in excess of sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993 $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

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12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021246,000,000
132022260,000,000
142023275,000,000
152024 275,000,000
162025 275,000,000
172026 279,000,000
182027 292,000,000
192028 307,000,000
202029 322,000,000
212030 338,000,000
222031 350,000,000
232032 350,000,000
24and
25each fiscal year
26thereafter that bonds

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1are outstanding under
2Section 13.2 of the
3Metropolitan Pier and
4Exposition Authority Act,
5but not after fiscal year 2060.
6 Beginning July 20, 1993 and in each month of each fiscal
7year thereafter, one-eighth of the amount requested in the
8certificate of the Chairman of the Metropolitan Pier and
9Exposition Authority for that fiscal year, less the amount
10deposited into the McCormick Place Expansion Project Fund by
11the State Treasurer in the respective month under subsection
12(g) of Section 13 of the Metropolitan Pier and Exposition
13Authority Act, plus cumulative deficiencies in the deposits
14required under this Section for previous months and years,
15shall be deposited into the McCormick Place Expansion Project
16Fund, until the full amount requested for the fiscal year, but
17not in excess of the amount specified above as "Total Deposit",
18has been deposited.
19 Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois Tax
24Increment Fund 0.27% of 80% of the net revenue realized for the
25preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

SB1285 Engrossed- 139 -LRB100 08067 HLH 18153 b
1 Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a 25-year
6period, the Department shall each month pay into the Energy
7Infrastructure Fund 80% of the net revenue realized from the
86.25% general rate on the selling price of Illinois-mined coal
9that was sold to an eligible business. For purposes of this
10paragraph, the term "eligible business" means a new electric
11generating facility certified pursuant to Section 605-332 of
12the Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14 Subject to payment of amounts into the Build Illinois Fund,
15the McCormick Place Expansion Project Fund, the Illinois Tax
16Increment Fund, and the Energy Infrastructure Fund pursuant to
17the preceding paragraphs or in any amendments to this Section
18hereafter enacted, beginning on the first day of the first
19calendar month to occur on or after August 26, 2014 (the
20effective date of Public Act 98-1098) this amendatory Act of
21the 98th General Assembly, each month, from the collections
22made under Section 9 of the Use Tax Act, Section 9 of the
23Service Use Tax Act, Section 9 of the Service Occupation Tax
24Act, and Section 3 of the Retailers' Occupation Tax Act, the
25Department shall pay into the Tax Compliance and Administration
26Fund, to be used, subject to appropriation, to fund additional

SB1285 Engrossed- 140 -LRB100 08067 HLH 18153 b
1auditors and compliance personnel at the Department of Revenue,
2an amount equal to 1/12 of 5% of 80% of the cash receipts
3collected during the preceding fiscal year by the Audit Bureau
4of the Department under the Use Tax Act, the Service Use Tax
5Act, the Service Occupation Tax Act, the Retailers' Occupation
6Tax Act, and associated local occupation and use taxes
7administered by the Department.
8 Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% thereof shall be paid into the State
10Treasury and 25% shall be reserved in a special account and
11used only for the transfer to the Common School Fund as part of
12the monthly transfer from the General Revenue Fund in
13accordance with Section 8a of the State Finance Act.
14 The Department may, upon separate written notice to a
15taxpayer, require the taxpayer to prepare and file with the
16Department on a form prescribed by the Department within not
17less than 60 days after receipt of the notice an annual
18information return for the tax year specified in the notice.
19Such annual return to the Department shall include a statement
20of gross receipts as shown by the retailer's last Federal
21income tax return. If the total receipts of the business as
22reported in the Federal income tax return do not agree with the
23gross receipts reported to the Department of Revenue for the
24same period, the retailer shall attach to his annual return a
25schedule showing a reconciliation of the 2 amounts and the
26reasons for the difference. The retailer's annual return to the

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1Department shall also disclose the cost of goods sold by the
2retailer during the year covered by such return, opening and
3closing inventories of such goods for such year, costs of goods
4used from stock or taken from stock and given away by the
5retailer during such year, payroll information of the
6retailer's business during such year and any additional
7reasonable information which the Department deems would be
8helpful in determining the accuracy of the monthly, quarterly
9or annual returns filed by such retailer as provided for in
10this Section.
11 If the annual information return required by this Section
12is not filed when and as required, the taxpayer shall be liable
13as follows:
14 (i) Until January 1, 1994, the taxpayer shall be liable
15 for a penalty equal to 1/6 of 1% of the tax due from such
16 taxpayer under this Act during the period to be covered by
17 the annual return for each month or fraction of a month
18 until such return is filed as required, the penalty to be
19 assessed and collected in the same manner as any other
20 penalty provided for in this Act.
21 (ii) On and after January 1, 1994, the taxpayer shall
22 be liable for a penalty as described in Section 3-4 of the
23 Uniform Penalty and Interest Act.
24 The chief executive officer, proprietor, owner or highest
25ranking manager shall sign the annual return to certify the
26accuracy of the information contained therein. Any person who

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1willfully signs the annual return containing false or
2inaccurate information shall be guilty of perjury and punished
3accordingly. The annual return form prescribed by the
4Department shall include a warning that the person signing the
5return may be liable for perjury.
6 The provisions of this Section concerning the filing of an
7annual information return do not apply to a retailer who is not
8required to file an income tax return with the United States
9Government.
10 As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17 Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21 For greater simplicity of administration, manufacturers,
22importers and wholesalers whose products are sold at retail in
23Illinois by numerous retailers, and who wish to do so, may
24assume the responsibility for accounting and paying to the
25Department all tax accruing under this Act with respect to such
26sales, if the retailers who are affected do not make written

SB1285 Engrossed- 143 -LRB100 08067 HLH 18153 b
1objection to the Department to this arrangement.
2 Any person who promotes, organizes, provides retail
3selling space for concessionaires or other types of sellers at
4the Illinois State Fair, DuQuoin State Fair, county fairs,
5local fairs, art shows, flea markets and similar exhibitions or
6events, including any transient merchant as defined by Section
72 of the Transient Merchant Act of 1987, is required to file a
8report with the Department providing the name of the merchant's
9business, the name of the person or persons engaged in
10merchant's business, the permanent address and Illinois
11Retailers Occupation Tax Registration Number of the merchant,
12the dates and location of the event and other reasonable
13information that the Department may require. The report must be
14filed not later than the 20th day of the month next following
15the month during which the event with retail sales was held.
16Any person who fails to file a report required by this Section
17commits a business offense and is subject to a fine not to
18exceed $250.
19 Any person engaged in the business of selling tangible
20personal property at retail as a concessionaire or other type
21of seller at the Illinois State Fair, county fairs, art shows,
22flea markets and similar exhibitions or events, or any
23transient merchants, as defined by Section 2 of the Transient
24Merchant Act of 1987, may be required to make a daily report of
25the amount of such sales to the Department and to make a daily
26payment of the full amount of tax due. The Department shall

SB1285 Engrossed- 144 -LRB100 08067 HLH 18153 b
1impose this requirement when it finds that there is a
2significant risk of loss of revenue to the State at such an
3exhibition or event. Such a finding shall be based on evidence
4that a substantial number of concessionaires or other sellers
5who are not residents of Illinois will be engaging in the
6business of selling tangible personal property at retail at the
7exhibition or event, or other evidence of a significant risk of
8loss of revenue to the State. The Department shall notify
9concessionaires and other sellers affected by the imposition of
10this requirement. In the absence of notification by the
11Department, the concessionaires and other sellers shall file
12their returns as otherwise required in this Section.
13(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1498-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
158-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
16eff. 1-27-17; revised 2-3-17.)
17 (35 ILCS 120/5j) (from Ch. 120, par. 444j)
18 Sec. 5j. If any taxpayer, outside the usual course of his
19business, sells or transfers the major part of any one or more
20of (A) the stock of goods which he is engaged in the business
21of selling, or (B) the furniture or fixtures, (C) the machinery
22and equipment, or (D) the real property, of any business that
23is subject to the provisions of this Act, the purchaser or
24transferee of such asset shall, no later than 10 business days
25prior to after the sale or transfer, file a notice of sale or

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1transfer of business assets with the Chicago office of the
2Department disclosing the name and address of the seller or
3transferor, the name and address of the purchaser or
4transferee, the date of the sale or transfer, a copy of the
5sales contract and financing agreements which shall include a
6description of the property sold, the amount of the purchase
7price or a statement of other consideration for the sale or
8transfer, the terms for payment of the purchase price, and such
9other information as the Department may reasonably require. If
10the purchaser or transferee fails to file the above described
11notice of sale with the Department within the prescribed time,
12the purchaser or transferee shall be personally liable for the
13amount owed hereunder by the seller or transferor to the
14Department up to the amount of the reasonable value of the
15property acquired by the purchaser or transferee. The seller or
16transferor shall pay the Department the amount of tax, penalty
17and interest (if any) due from him under this Act up to the
18date of the payment of tax. The seller or transferor, or the
19purchaser or transferee, at least 10 business days before the
20date of the sale or transfer, may notify the Department of the
21intended sale or transfer and request the Department to audit
22the books and records of the seller or transferor, or to do
23whatever else may be necessary to determine how much the seller
24or transferor owes to the Department hereunder up to the date
25of the sale or transfer. The Department shall take such steps
26as may be appropriate to comply with such request.

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1 Any order issued by the Department pursuant to this Section
2to withhold from the purchase price shall be issued within 10
3business days after the Department receives notification of a
4sale as provided in this Section. The purchaser or transferee
5shall withhold such portion of the purchase price as may be
6directed by the Department, but not to exceed a minimum amount
7varying by type of business, as determined by the Department
8pursuant to regulations, plus twice the outstanding unpaid
9liabilities and twice the average liability of preceding
10filings times the number of unfiled returns, to cover the
11amount of all tax, penalty and interest due and unpaid by the
12seller or transferor under this Act or, if the payment of money
13or property is not involved, shall withhold the performance of
14the condition that constitutes the consideration for the sale
15or transfer. Within 60 business days after issuance of the
16initial order to withhold, the Department shall provide written
17notice to the purchaser or transferee of the actual amount of
18all taxes, penalties and interest then due and whether or not
19additional amounts may become due as a result of unfiled
20returns, pending assessments and audits not completed. The
21purchaser or transferee shall continue to withhold the amount
22directed to be withheld by the initial order or such lesser
23amount as is specified by the final withholding order or to
24withhold the performance of the condition which constitutes the
25consideration for the sale or transfer until the purchaser or
26transferee receives from the Department a certificate showing

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1that such tax, penalty and interest have been paid or a
2certificate from the Department showing that no tax, penalty or
3interest is due from the seller or transferor under this Act.
4 The purchaser or transferee is relieved of any duty to
5continue to withhold from the purchase price and of any
6liability for tax, penalty or interest due hereunder from the
7seller or transferor if the Department fails to notify the
8purchaser or transferee in the manner provided herein of the
9amount to be withheld within 10 business days after the sale or
10transfer has been reported to the Department or within 60
11business days after issuance of the initial order to withhold,
12as the case may be. The Department shall have the right to
13determine amounts claimed on an estimated basis to allow for
14non-filed periods, pending assessments and audits not
15completed, however the purchaser or transferee shall be
16personally liable only for the actual amount due when
17determined.
18 If the seller or transferor fails to pay the tax, penalty
19and interest (if any) due from him hereunder and the Department
20makes timely claim therefor against the purchaser or transferee
21as hereinabove provided, then the purchaser or transferee shall
22pay the amount so withheld from the purchase price to the
23Department. If the purchaser or transferee fails to comply with
24the requirements of this Section, the purchaser or transferee
25shall be personally liable to the Department for the amount
26owed hereunder by the seller or transferor to the Department up

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1to the amount of the reasonable value of the property acquired
2by the purchaser or transferee.
3 Any person who shall acquire any property or rights thereto
4which, at the time of such acquisition, is subject to a valid
5lien in favor of the Department shall be personally liable to
6the Department for a sum equal to the amount of taxes secured
7by such lien but not to exceed the reasonable value of such
8property acquired by him.
9(Source: P.A. 94-776, eff. 5-19-06.)
10 Section 50. The Cigarette Machine Operators' Occupation
11Tax Act is amended by changing Section 1-40 as follows:
12 (35 ILCS 128/1-40)
13 Sec. 1-40. Returns.
14 (a) Cigarette machine operators shall file a return and
15remit the tax imposed by Section 1-10 by the 15th day of each
16month covering the preceding calendar month. Each such return
17shall show: the quantity of cigarettes made or fabricated
18during the period covered by the return; the beginning and
19ending meter reading for each cigarette machine for the period
20covered by the return; the quantity of such cigarettes sold or
21otherwise disposed of during the period covered by the return;
22the brand family and manufacturer and quantity of tobacco
23products used to make or fabricate cigarettes by use of a
24cigarette machine; the license number of each distributor from

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1whom tobacco products are purchased; the type and quantity of
2cigarette tubes purchased for use in a cigarette machine; the
3type and quantity of cigarette tubes used in a cigarette
4machine; and such other information as the Department may
5require. Such returns shall be filed on forms prescribed and
6furnished by the Department. The Department may promulgate
7rules to require that the cigarette machine operator's return
8be accompanied by appropriate computer-generated magnetic
9media supporting schedule data in the format required by the
10Department, unless, as provided by rule, the Department grants
11an exception upon petition of a cigarette machine operator.
12 Cigarette machine operators shall send a copy of those
13returns, together with supporting schedule data, to the
14Attorney General's Office by the 15th day of each month for the
15period covering the preceding calendar month.
16 (b) Cigarette machine operators may take a credit against
17any tax due under Section 1-10 of this Act for taxes imposed
18and paid under the Tobacco Products Tax Act of 1995 on tobacco
19products sold to a customer and used in a rolling machine
20located at the cigarette machine operator's place of business.
21To be eligible for such credit, the tobacco product must meet
22the requirements of subsection (a) of Section 1-25 of this Act.
23This subsection (b) is exempt from the provisions of Section
241-155 of this Act.
25 (c) If any payment provided for in this Section exceeds the
26cigarette machine operator's liabilities under this Act, as

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1shown on an original return, the cigarette machine operator may
2credit such excess payment against liability subsequently to be
3remitted to the Department under this Act, in accordance with
4reasonable rules adopted by the Department.
5(Source: P.A. 97-688, eff. 6-14-12.)
6 Section 55. The Cigarette Tax Act is amended by changing
7Section 2 as follows:
8 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
9 Sec. 2. Tax imposed; rate; collection, payment, and
10distribution; discount.
11 (a) A tax is imposed upon any person engaged in business as
12a retailer of cigarettes in this State at the rate of 5 1/2
13mills per cigarette sold, or otherwise disposed of in the
14course of such business in this State. In addition to any other
15tax imposed by this Act, a tax is imposed upon any person
16engaged in business as a retailer of cigarettes in this State
17at a rate of 1/2 mill per cigarette sold or otherwise disposed
18of in the course of such business in this State on and after
19January 1, 1947, and shall be paid into the Metropolitan Fair
20and Exposition Authority Reconstruction Fund or as otherwise
21provided in Section 29. On and after December 1, 1985, in
22addition to any other tax imposed by this Act, a tax is imposed
23upon any person engaged in business as a retailer of cigarettes
24in this State at a rate of 4 mills per cigarette sold or

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1otherwise disposed of in the course of such business in this
2State. Of the additional tax imposed by this amendatory Act of
31985, $9,000,000 of the moneys received by the Department of
4Revenue pursuant to this Act shall be paid each month into the
5Common School Fund. On and after the effective date of this
6amendatory Act of 1989, in addition to any other tax imposed by
7this Act, a tax is imposed upon any person engaged in business
8as a retailer of cigarettes at the rate of 5 mills per
9cigarette sold or otherwise disposed of in the course of such
10business in this State. On and after the effective date of this
11amendatory Act of 1993, in addition to any other tax imposed by
12this Act, a tax is imposed upon any person engaged in business
13as a retailer of cigarettes at the rate of 7 mills per
14cigarette sold or otherwise disposed of in the course of such
15business in this State. On and after December 15, 1997, in
16addition to any other tax imposed by this Act, a tax is imposed
17upon any person engaged in business as a retailer of cigarettes
18at the rate of 7 mills per cigarette sold or otherwise disposed
19of in the course of such business of this State. All of the
20moneys received by the Department of Revenue pursuant to this
21Act and the Cigarette Use Tax Act from the additional taxes
22imposed by this amendatory Act of 1997, shall be paid each
23month into the Common School Fund. On and after July 1, 2002,
24in addition to any other tax imposed by this Act, a tax is
25imposed upon any person engaged in business as a retailer of
26cigarettes at the rate of 20.0 mills per cigarette sold or

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1otherwise disposed of in the course of such business in this
2State. Beginning on June 24, 2012, in addition to any other tax
3imposed by this Act, a tax is imposed upon any person engaged
4in business as a retailer of cigarettes at the rate of 50 mills
5per cigarette sold or otherwise disposed of in the course of
6such business in this State. All moneys received by the
7Department of Revenue under this Act and the Cigarette Use Tax
8Act from the additional taxes imposed by this amendatory Act of
9the 97th General Assembly shall be paid each month into the
10Healthcare Provider Relief Fund. The payment of such taxes
11shall be evidenced by a stamp affixed to each original package
12of cigarettes, or an authorized substitute for such stamp
13imprinted on each original package of such cigarettes
14underneath the sealed transparent outside wrapper of such
15original package, as hereinafter provided. However, such taxes
16are not imposed upon any activity in such business in
17interstate commerce or otherwise, which activity may not under
18the Constitution and statutes of the United States be made the
19subject of taxation by this State.
20 Beginning on the effective date of this amendatory Act of
21the 92nd General Assembly and through June 30, 2006, all of the
22moneys received by the Department of Revenue pursuant to this
23Act and the Cigarette Use Tax Act, other than the moneys that
24are dedicated to the Common School Fund, shall be distributed
25each month as follows: first, there shall be paid into the
26General Revenue Fund an amount which, when added to the amount

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1paid into the Common School Fund for that month, equals
2$33,300,000, except that in the month of August of 2004, this
3amount shall equal $83,300,000; then, from the moneys
4remaining, if any amounts required to be paid into the General
5Revenue Fund in previous months remain unpaid, those amounts
6shall be paid into the General Revenue Fund; then, beginning on
7April 1, 2003, from the moneys remaining, $5,000,000 per month
8shall be paid into the School Infrastructure Fund; then, if any
9amounts required to be paid into the School Infrastructure Fund
10in previous months remain unpaid, those amounts shall be paid
11into the School Infrastructure Fund; then the moneys remaining,
12if any, shall be paid into the Long-Term Care Provider Fund. To
13the extent that more than $25,000,000 has been paid into the
14General Revenue Fund and Common School Fund per month for the
15period of July 1, 1993 through the effective date of this
16amendatory Act of 1994 from combined receipts of the Cigarette
17Tax Act and the Cigarette Use Tax Act, notwithstanding the
18distribution provided in this Section, the Department of
19Revenue is hereby directed to adjust the distribution provided
20in this Section to increase the next monthly payments to the
21Long Term Care Provider Fund by the amount paid to the General
22Revenue Fund and Common School Fund in excess of $25,000,000
23per month and to decrease the next monthly payments to the
24General Revenue Fund and Common School Fund by that same excess
25amount.
26 Beginning on July 1, 2006, all of the moneys received by

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1the Department of Revenue pursuant to this Act and the
2Cigarette Use Tax Act, other than the moneys that are dedicated
3to the Common School Fund and, beginning on the effective date
4of this amendatory Act of the 97th General Assembly, other than
5the moneys from the additional taxes imposed by this amendatory
6Act of the 97th General Assembly that must be paid each month
7into the Healthcare Provider Relief Fund, shall be distributed
8each month as follows: first, there shall be paid into the
9General Revenue Fund an amount that, when added to the amount
10paid into the Common School Fund for that month, equals
11$29,200,000; then, from the moneys remaining, if any amounts
12required to be paid into the General Revenue Fund in previous
13months remain unpaid, those amounts shall be paid into the
14General Revenue Fund; then from the moneys remaining,
15$5,000,000 per month shall be paid into the School
16Infrastructure Fund; then, if any amounts required to be paid
17into the School Infrastructure Fund in previous months remain
18unpaid, those amounts shall be paid into the School
19Infrastructure Fund; then the moneys remaining, if any, shall
20be paid into the Long-Term Care Provider Fund.
21 Moneys collected from the tax imposed on little cigars
22under Section 10-10 of the Tobacco Products Tax Act of 1995
23shall be included with the moneys collected under the Cigarette
24Tax Act and the Cigarette Use Tax Act when making distributions
25to the Common School Fund, the Healthcare Provider Relief Fund,
26the General Revenue Fund, the School Infrastructure Fund, and

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1the Long-Term Care Provider Fund under this Section.
2 When any tax imposed herein terminates or has terminated,
3distributors who have bought stamps while such tax was in
4effect and who therefore paid such tax, but who can show, to
5the Department's satisfaction, that they sold the cigarettes to
6which they affixed such stamps after such tax had terminated
7and did not recover the tax or its equivalent from purchasers,
8shall be allowed by the Department to take credit for such
9absorbed tax against subsequent tax stamp purchases from the
10Department by such distributor.
11 The impact of the tax levied by this Act is imposed upon
12the retailer and shall be prepaid or pre-collected by the
13distributor for the purpose of convenience and facility only,
14and the amount of the tax shall be added to the price of the
15cigarettes sold by such distributor. Collection of the tax
16shall be evidenced by a stamp or stamps affixed to each
17original package of cigarettes, as hereinafter provided. Any
18distributor who purchases stamps may credit any excess payments
19verified by the Department against amounts subsequently due for
20the purchase of additional stamps, until such time as no excess
21payment remains.
22 Each distributor shall collect the tax from the retailer at
23or before the time of the sale, shall affix the stamps as
24hereinafter required, and shall remit the tax collected from
25retailers to the Department, as hereinafter provided. Any
26distributor who fails to properly collect and pay the tax

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1imposed by this Act shall be liable for the tax. Any
2distributor having cigarettes to which stamps have been affixed
3in his possession for sale on the effective date of this
4amendatory Act of 1989 shall not be required to pay the
5additional tax imposed by this amendatory Act of 1989 on such
6stamped cigarettes. Any distributor having cigarettes to which
7stamps have been affixed in his or her possession for sale at
812:01 a.m. on the effective date of this amendatory Act of
91993, is required to pay the additional tax imposed by this
10amendatory Act of 1993 on such stamped cigarettes. This
11payment, less the discount provided in subsection (b), shall be
12due when the distributor first makes a purchase of cigarette
13tax stamps after the effective date of this amendatory Act of
141993, or on the first due date of a return under this Act after
15the effective date of this amendatory Act of 1993, whichever
16occurs first. Any distributor having cigarettes to which stamps
17have been affixed in his possession for sale on December 15,
181997 shall not be required to pay the additional tax imposed by
19this amendatory Act of 1997 on such stamped cigarettes.
20 Any distributor having cigarettes to which stamps have been
21affixed in his or her possession for sale on July 1, 2002 shall
22not be required to pay the additional tax imposed by this
23amendatory Act of the 92nd General Assembly on those stamped
24cigarettes.
25 Any retailer having cigarettes in his or her possession on
26June 24, 2012 to which tax stamps have been affixed is not

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1required to pay the additional tax that begins on June 24, 2012
2imposed by this amendatory Act of the 97th General Assembly on
3those stamped cigarettes. Any distributor having cigarettes in
4his or her possession on June 24, 2012 to which tax stamps have
5been affixed, and any distributor having stamps in his or her
6possession on June 24, 2012 that have not been affixed to
7packages of cigarettes before June 24, 2012, is required to pay
8the additional tax that begins on June 24, 2012 imposed by this
9amendatory Act of the 97th General Assembly to the extent the
10calendar year 2012 average monthly volume of cigarette stamps
11in the distributor's possession exceeds the average monthly
12volume of cigarette stamps purchased by the distributor in
13calendar year 2011. This payment, less the discount provided in
14subsection (b), is due when the distributor first makes a
15purchase of cigarette stamps on or after June 24, 2012 or on
16the first due date of a return under this Act occurring on or
17after June 24, 2012, whichever occurs first. Those distributors
18may elect to pay the additional tax on packages of cigarettes
19to which stamps have been affixed and on any stamps in the
20distributor's possession that have not been affixed to packages
21of cigarettes over a period not to exceed 12 months from the
22due date of the additional tax by notifying the Department in
23writing. The first payment for distributors making such
24election is due when the distributor first makes a purchase of
25cigarette tax stamps on or after June 24, 2012 or on the first
26due date of a return under this Act occurring on or after June

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124, 2012, whichever occurs first. Distributors making such an
2election are not entitled to take the discount provided in
3subsection (b) on such payments.
4 Distributors making sales of cigarettes to secondary
5distributors shall add the amount of the tax to the price of
6the cigarettes sold by the distributors. Secondary
7distributors making sales of cigarettes to retailers shall
8include the amount of the tax in the price of the cigarettes
9sold to retailers. The amount of tax shall not be less than the
10amount of taxes imposed by the State and all local
11jurisdictions. The amount of local taxes shall be calculated
12based on the location of the retailer's place of business shown
13on the retailer's certificate of registration or
14sub-registration issued to the retailer pursuant to Section 2a
15of the Retailers' Occupation Tax Act. The original packages of
16cigarettes sold to the retailer shall bear all the required
17stamps, or other indicia, for the taxes included in the price
18of cigarettes.
19 The amount of the Cigarette Tax imposed by this Act shall
20be separately stated, apart from the price of the goods, by
21distributors, manufacturer representatives, secondary
22distributors, and retailers, in all bills and sales invoices.
23 (b) The distributor shall be required to collect the taxes
24provided under paragraph (a) hereof, and, to cover the costs of
25such collection, shall be allowed a discount during any year
26commencing July 1st and ending the following June 30th in

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1accordance with the schedule set out hereinbelow, which
2discount shall be allowed at the time of purchase of the stamps
3when purchase is required by this Act, or at the time when the
4tax is remitted to the Department without the purchase of
5stamps from the Department when that method of paying the tax
6is required or authorized by this Act. Prior to December 1,
71985, a discount equal to 1 2/3% of the amount of the tax up to
8and including the first $700,000 paid hereunder by such
9distributor to the Department during any such year; 1 1/3% of
10the next $700,000 of tax or any part thereof, paid hereunder by
11such distributor to the Department during any such year; 1% of
12the next $700,000 of tax, or any part thereof, paid hereunder
13by such distributor to the Department during any such year, and
142/3 of 1% of the amount of any additional tax paid hereunder by
15such distributor to the Department during any such year shall
16apply. On and after December 1, 1985, a discount equal to 1.75%
17of the amount of the tax payable under this Act up to and
18including the first $3,000,000 paid hereunder by such
19distributor to the Department during any such year and 1.5% of
20the amount of any additional tax paid hereunder by such
21distributor to the Department during any such year shall apply.
22 Two or more distributors that use a common means of
23affixing revenue tax stamps or that are owned or controlled by
24the same interests shall be treated as a single distributor for
25the purpose of computing the discount.
26 (c) The taxes herein imposed are in addition to all other

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1occupation or privilege taxes imposed by the State of Illinois,
2or by any political subdivision thereof, or by any municipal
3corporation.
4(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
598-273, eff. 8-9-13.)
6 Section 60. The Cigarette Use Tax Act is amended by
7changing Section 3 as follows:
8 (35 ILCS 135/3) (from Ch. 120, par. 453.33)
9 Sec. 3. Stamp payment. The tax hereby imposed shall be
10collected by a distributor maintaining a place of business in
11this State or a distributor authorized by the Department
12pursuant to Section 7 hereof to collect the tax, and the amount
13of the tax shall be added to the price of the cigarettes sold
14by such distributor. Collection of the tax shall be evidenced
15by a stamp or stamps affixed to each original package of
16cigarettes or by an authorized substitute for such stamp
17imprinted on each original package of such cigarettes
18underneath the sealed transparent outside wrapper of such
19original package, except as hereinafter provided. Each
20distributor who is required or authorized to collect the tax
21herein imposed, before delivering or causing to be delivered
22any original packages of cigarettes in this State to any
23purchaser, shall firmly affix a proper stamp or stamps to each
24such package, or (in the case of manufacturers of cigarettes in

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1original packages which are contained inside a sealed
2transparent wrapper) shall imprint the required language on the
3original package of cigarettes beneath such outside wrapper as
4hereinafter provided. Such stamp or stamps need not be affixed
5to the original package of any cigarettes with respect to which
6the distributor is required to affix a like stamp or stamps by
7virtue of the Cigarette Tax Act, however, and no tax imprint
8need be placed underneath the sealed transparent wrapper of an
9original package of cigarettes with respect to which the
10distributor is required or authorized to employ a like tax
11imprint by virtue of the Cigarette Tax Act. Any distributor who
12purchases stamps may credit any excess payments verified by the
13Department against amounts subsequently due for the purchase of
14additional stamps, until such time as no excess payment
15remains.
16 No stamp or imprint may be affixed to, or made upon, any
17package of cigarettes unless that package complies with all
18requirements of the federal Cigarette Labeling and Advertising
19Act, 15 U.S.C. 1331 and following, for the placement of labels,
20warnings, or any other information upon a package of cigarettes
21that is sold within the United States. Under the authority of
22Section 6, the Department shall revoke the license of any
23distributor that is determined to have violated this paragraph.
24A person may not affix a stamp on a package of cigarettes,
25cigarette papers, wrappers, or tubes if that individual package
26has been marked for export outside the United States with a

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1label or notice in compliance with Section 290.185 of Title 27
2of the Code of Federal Regulations. It is not a defense to a
3proceeding for violation of this paragraph that the label or
4notice has been removed, mutilated, obliterated, or altered in
5any manner.
6 Only distributors licensed under this Act and
7transporters, as defined in Section 9c of the Cigarette Tax
8Act, may possess unstamped original packages of cigarettes.
9Prior to shipment to an Illinois retailer or secondary
10distributor, a stamp shall be applied to each original package
11of cigarettes sold to the retailer or secondary distributor. A
12distributor may apply a tax stamp only to an original package
13of cigarettes purchased or obtained directly from an in-state
14maker, manufacturer, or fabricator licensed as a distributor
15under Section 4 of this Act or an out-of-state maker,
16manufacturer, or fabricator holding a permit under Section 7 of
17this Act. A licensed distributor may ship or otherwise cause to
18be delivered unstamped original packages of cigarettes in,
19into, or from this State. A licensed distributor may transport
20unstamped original packages of cigarettes to a facility,
21wherever located, owned or controlled by such distributor;
22however, a distributor may not transport unstamped original
23packages of cigarettes to a facility where retail sales of
24cigarettes take place or to a facility where a secondary
25distributor makes sales for resale. Any licensed distributor
26that ships or otherwise causes to be delivered unstamped

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1original packages of cigarettes into, within, or from this
2State shall ensure that the invoice or equivalent documentation
3and the bill of lading or freight bill for the shipment
4identifies the true name and address of the consignor or
5seller, the true name and address of the consignee or
6purchaser, and the quantity by brand style of the cigarettes so
7transported, provided that this Section shall not be construed
8as to impose any requirement or liability upon any common or
9contract carrier.
10 Distributors making sales of cigarettes to secondary
11distributors shall add the amount of the tax to the price of
12the cigarettes sold by the distributors. Secondary
13distributors making sales of cigarettes to retailers shall
14include the amount of the tax in the price of the cigarettes
15sold to retailers. The amount of tax shall not be less than the
16amount of taxes imposed by the State and all local
17jurisdictions. The amount of local taxes shall be calculated
18based on the location of the retailer's place of business shown
19on the retailer's certificate of registration or
20sub-registration issued to the retailer pursuant to Section 2a
21of the Retailers' Occupation Tax Act. The original packages of
22cigarettes sold by the retailer shall bear all the required
23stamps, or other indicia, for the taxes included in the price
24of cigarettes.
25 Stamps, when required hereunder, shall be purchased from
26the Department, or any person authorized by the Department, by

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1distributors. On and after July 1, 2003, payment for such
2stamps must be made by means of electronic funds transfer. The
3Department may refuse to sell stamps to any person who does not
4comply with the provisions of this Act. Beginning on June 6,
52002 and through June 30, 2002, persons holding valid licenses
6as distributors may purchase cigarette tax stamps up to an
7amount equal to 115% of the distributor's average monthly
8cigarette tax stamp purchases over the 12 calendar months prior
9to June 6, 2002.
10 Prior to December 1, 1985, the Department shall allow a
11distributor 21 days in which to make final payment of the
12amount to be paid for such stamps, by allowing the distributor
13to make payment for the stamps at the time of purchasing them
14with a draft which shall be in such form as the Department
15prescribes, and which shall be payable within 21 days
16thereafter: Provided that such distributor has filed with the
17Department, and has received the Department's approval of, a
18bond, which is in addition to the bond required under Section 4
19of this Act, payable to the Department in an amount equal to
2080% of such distributor's average monthly tax liability to the
21Department under this Act during the preceding calendar year or
22$500,000, whichever is less. The bond shall be joint and
23several and shall be in the form of a surety company bond in
24such form as the Department prescribes, or it may be in the
25form of a bank certificate of deposit or bank letter of credit.
26The bond shall be conditioned upon the distributor's payment of

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1the amount of any 21-day draft which the Department accepts
2from that distributor for the delivery of stamps to that
3distributor under this Act. The distributor's failure to pay
4any such draft, when due, shall also make such distributor
5automatically liable to the Department for a penalty equal to
625% of the amount of such draft.
7 On and after December 1, 1985 and until July 1, 2003, the
8Department shall allow a distributor 30 days in which to make
9final payment of the amount to be paid for such stamps, by
10allowing the distributor to make payment for the stamps at the
11time of purchasing them with a draft which shall be in such
12form as the Department prescribes, and which shall be payable
13within 30 days thereafter, and beginning on January 1, 2003 and
14thereafter, the draft shall be payable by means of electronic
15funds transfer: Provided that such distributor has filed with
16the Department, and has received the Department's approval of,
17a bond, which is in addition to the bond required under Section
184 of this Act, payable to the Department in an amount equal to
19150% of such distributor's average monthly tax liability to the
20Department under this Act during the preceding calendar year or
21$750,000, whichever is less, except that as to bonds filed on
22or after January 1, 1987, such additional bond shall be in an
23amount equal to 100% of such distributor's average monthly tax
24liability under this Act during the preceding calendar year or
25$750,000, whichever is less. The bond shall be joint and
26several and shall be in the form of a surety company bond in

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1such form as the Department prescribes, or it may be in the
2form of a bank certificate of deposit or bank letter of credit.
3The bond shall be conditioned upon the distributor's payment of
4the amount of any 30-day draft which the Department accepts
5from that distributor for the delivery of stamps to that
6distributor under this Act. The distributor's failure to pay
7any such draft, when due, shall also make such distributor
8automatically liable to the Department for a penalty equal to
925% of the amount of such draft.
10 Every prior continuous compliance taxpayer shall be exempt
11from all requirements under this Section concerning the
12furnishing of such bond, as defined in this Section, as a
13condition precedent to his being authorized to engage in the
14business licensed under this Act. This exemption shall continue
15for each such taxpayer until such time as he may be determined
16by the Department to be delinquent in the filing of any
17returns, or is determined by the Department (either through the
18Department's issuance of a final assessment which has become
19final under the Act, or by the taxpayer's filing of a return
20which admits tax to be due that is not paid) to be delinquent
21or deficient in the paying of any tax under this Act, at which
22time that taxpayer shall become subject to the bond
23requirements of this Section and, as a condition of being
24allowed to continue to engage in the business licensed under
25this Act, shall be required to furnish bond to the Department
26in such form as provided in this Section. Such taxpayer shall

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1furnish such bond for a period of 2 years, after which, if the
2taxpayer has not been delinquent in the filing of any returns,
3or delinquent or deficient in the paying of any tax under this
4Act, the Department may reinstate such person as a prior
5continuance compliance taxpayer. Any taxpayer who fails to pay
6an admitted or established liability under this Act may also be
7required to post bond or other acceptable security with the
8Department guaranteeing the payment of such admitted or
9established liability.
10 Except as otherwise provided in this Section, any person
11aggrieved by any decision of the Department under this Section
12may, within the time allowed by law, protest and request a
13hearing before the Department, whereupon the Department shall
14give notice and shall hold a hearing in conformity with the
15provisions of this Act and then issue its final administrative
16decision in the matter to such person. Effective July 1, 2013,
17protests concerning matters that are subject to the
18jurisdiction of the Illinois Independent Tax Tribunal shall be
19filed in accordance with the Illinois Independent Tax Tribunal
20Act of 2012, and hearings concerning those matters shall be
21held before the Tribunal in accordance with that Act. With
22respect to protests filed with the Department prior to July 1,
232013 that would otherwise be subject to the jurisdiction of the
24Illinois Independent Tax Tribunal, the person filing the
25protest may elect to be subject to the provisions of the
26Illinois Independent Tax Tribunal Act of 2012 at any time on or

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1after July 1, 2013, but not later than 30 days after the date
2on which the protest was filed. If made, the election shall be
3irrevocable. In the absence of such a protest filed within the
4time allowed by law, the Department's decision shall become
5final without any further determination being made or notice
6given.
7 The Department shall discharge any surety and shall release
8and return any bond or security deposited, assigned, pledged,
9or otherwise provided to it by a taxpayer under this Section
10within 30 days after:
11 (1) such Taxpayer becomes a prior continuous
12 compliance taxpayer; or
13 (2) such taxpayer has ceased to collect receipts on
14 which he is required to remit tax to the Department, has
15 filed a final tax return, and has paid to the Department an
16 amount sufficient to discharge his remaining tax liability
17 as determined by the Department under this Act. The
18 Department shall make a final determination of the
19 taxpayer's outstanding tax liability as expeditiously as
20 possible after his final tax return has been filed. If the
21 Department cannot make such final determination within 45
22 days after receiving the final tax return, within such
23 period it shall so notify the taxpayer, stating its reasons
24 therefor.
25 At the time of purchasing such stamps from the Department
26when purchase is required by this Act, or at the time when the

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1tax which he has collected is remitted by a distributor to the
2Department without the purchase of stamps from the Department
3when that method of remitting the tax that has been collected
4is required or authorized by this Act, the distributor shall be
5allowed a discount during any year commencing July 1 and ending
6the following June 30 in accordance with the schedule set out
7hereinbelow, from the amount to be paid by him to the
8Department for such stamps, or to be paid by him to the
9Department on the basis of monthly remittances (as the case may
10be), to cover the cost, to such distributor, of collecting the
11tax herein imposed by affixing such stamps to the original
12packages of cigarettes sold by such distributor or by placing
13tax imprints underneath the sealed transparent wrapper of
14original packages of cigarettes sold by such distributor (as
15the case may be): (1) Prior to December 1, 1985, a discount
16equal to 1-2/3% of the amount of the tax up to and including
17the first $700,000 paid hereunder by such distributor to the
18Department during any such year; 1-1/3% of the next $700,000 of
19tax or any part thereof, paid hereunder by such distributor to
20the Department during any such year; 1% of the next $700,000 of
21tax, or any part thereof, paid hereunder by such distributor to
22the Department during any such year; and 2/3 of 1% of the
23amount of any additional tax paid hereunder by such distributor
24to the Department during any such year or (2) On and after
25December 1, 1985, a discount equal to 1.75% of the amount of
26the tax payable under this Act up to and including the first

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1$3,000,000 paid hereunder by such distributor to the Department
2during any such year and 1.5% of the amount of any additional
3tax paid hereunder by such distributor to the Department during
4any such year.
5 Two or more distributors that use a common means of
6affixing revenue tax stamps or that are owned or controlled by
7the same interests shall be treated as a single distributor for
8the purpose of computing the discount.
9 Cigarette manufacturers who are distributors under Section
107(a) of this Act, and who place their cigarettes in original
11packages which are contained inside a sealed transparent
12wrapper, shall be required to remit the tax which they are
13required to collect under this Act to the Department by
14remitting the amount thereof to the Department by the 5th day
15of each month, covering cigarettes shipped or otherwise
16delivered to points in Illinois to purchasers during the
17preceding calendar month, but a distributor need not remit to
18the Department the tax so collected by him from purchasers
19under this Act to the extent to which such distributor is
20required to remit the tax imposed by the Cigarette Tax Act to
21the Department with respect to the same cigarettes. All taxes
22upon cigarettes under this Act are a direct tax upon the retail
23consumer and shall conclusively be presumed to be precollected
24for the purpose of convenience and facility only. Cigarette
25manufacturers that are distributors licensed under Section
267(a) of this Act and who place their cigarettes in original

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1packages which are contained inside a sealed transparent
2wrapper, before delivering such cigarettes or causing such
3cigarettes to be delivered in this State to purchasers, shall
4evidence their obligation to collect and remit the tax due with
5respect to such cigarettes by imprinting language to be
6prescribed by the Department on each original package of such
7cigarettes underneath the sealed transparent outside wrapper
8of such original package, in such place thereon and in such
9manner as the Department may prescribe; provided (as stated
10hereinbefore) that this requirement does not apply when such
11distributor is required or authorized by the Cigarette Tax Act
12to place the tax imprint provided for in the last paragraph of
13Section 3 of that Act underneath the sealed transparent wrapper
14of such original package of cigarettes. Such imprinted language
15shall acknowledge the manufacturer's collection and payment of
16or liability for the tax imposed by this Act with respect to
17such cigarettes.
18 The Department shall adopt the design or designs of the tax
19stamps and shall procure the printing of such stamps in such
20amounts and denominations as it deems necessary to provide for
21the affixation of the proper amount of tax stamps to each
22original package of cigarettes.
23 Where tax stamps are required, the Department may authorize
24distributors to affix revenue tax stamps by imprinting tax
25meter stamps upon original packages of cigarettes. The
26Department shall adopt rules and regulations relating to the

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1imprinting of such tax meter stamps as will result in payment
2of the proper taxes as herein imposed. No distributor may affix
3revenue tax stamps to original packages of cigarettes by
4imprinting meter stamps thereon unless such distributor has
5first obtained permission from the Department to employ this
6method of affixation. The Department shall regulate the use of
7tax meters and may, to assure the proper collection of the
8taxes imposed by this Act, revoke or suspend the privilege,
9theretofore granted by the Department to any distributor, to
10imprint tax meter stamps upon original packages of cigarettes.
11 The tax hereby imposed and not paid pursuant to this
12Section shall be paid to the Department directly by any person
13using such cigarettes within this State, pursuant to Section 12
14hereof.
15 A distributor shall not affix, or cause to be affixed, any
16stamp or imprint to a package of cigarettes, as provided for in
17this Section, if the tobacco product manufacturer, as defined
18in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
19that made or sold the cigarettes has failed to become a
20participating manufacturer, as defined in subdivision (a)(1)
21of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
22or has failed to create a qualified escrow fund for any
23cigarettes manufactured by the tobacco product manufacturer
24and sold in this State or otherwise failed to bring itself into
25compliance with subdivision (a)(2) of Section 15 of the Tobacco
26Product Manufacturers' Escrow Act.

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1(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
297-1129, eff. 8-28-12.)
3 Section 65. The Tobacco Products Tax Act of 1995 is amended
4by changing Section 10-30 as follows:
5 (35 ILCS 143/10-30)
6 Sec. 10-30. Returns.
7 (a) Every distributor shall, on or before the 15th day of
8each month, file a return with the Department covering the
9preceding calendar month. The return shall disclose the
10wholesale price for all tobacco products other than moist snuff
11and the quantity in ounces of moist snuff sold or otherwise
12disposed of and other information that the Department may
13reasonably require. The return shall be filed upon a form
14prescribed and furnished by the Department.
15 (b) In addition to the information required under
16subsection (a), on or before the 15th day of each month,
17covering the preceding calendar month, each stamping
18distributor shall, on forms prescribed and furnished by the
19Department, report the quantity of little cigars sold or
20otherwise disposed of, including the number of packages of
21little cigars sold or disposed of during the month containing
2220 or 25 little cigars.
23 (c) At the time when any return of any distributor is due
24to be filed with the Department, the distributor shall also

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1remit to the Department the tax liability that the distributor
2has incurred for transactions occurring in the preceding
3calendar month.
4 (d) The Department may adopt rules to require the
5electronic filing of any return or document required to be
6filed under this Act. Those rules may provide for exceptions
7from the filing requirement set forth in this paragraph for
8persons who demonstrate that they do not have access to the
9Internet and petition the Department to waive the electronic
10filing requirement.
11 (e) If any payment provided for in this Section exceeds the
12distributor's liabilities under this Act, as shown on an
13original return, the distributor may credit such excess payment
14against liability subsequently to be remitted to the Department
15under this Act, in accordance with reasonable rules adopted by
16the Department.
17(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
18 Section 70. The Hotel Operators' Occupation Tax Act is
19amended by changing Section 6 as follows:
20 (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
21 Sec. 6. Except as provided hereinafter in this Section, on
22or before the last day of each calendar month, every person
23engaged in the business of renting, leasing or letting rooms in
24a hotel in this State during the preceding calendar month shall

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1file a return with the Department, stating:
2 1. The name of the operator;
3 2. His residence address and the address of his
4 principal place of business and the address of the
5 principal place of business (if that is a different
6 address) from which he engages in the business of renting,
7 leasing or letting rooms in a hotel in this State;
8 3. Total amount of rental receipts received by him
9 during the preceding calendar month from renting, leasing
10 or letting rooms during such preceding calendar month;
11 4. Total amount of rental receipts received by him
12 during the preceding calendar month from renting, leasing
13 or letting rooms to permanent residents during such
14 preceding calendar month;
15 5. Total amount of other exclusions from gross rental
16 receipts allowed by this Act;
17 6. Gross rental receipts which were received by him
18 during the preceding calendar month and upon the basis of
19 which the tax is imposed;
20 7. The amount of tax due;
21 8. Such other reasonable information as the Department
22 may require.
23 If the operator's average monthly tax liability to the
24Department does not exceed $200, the Department may authorize
25his returns to be filed on a quarter annual basis, with the
26return for January, February and March of a given year being

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1due by April 30 of such year; with the return for April, May
2and June of a given year being due by July 31 of such year; with
3the return for July, August and September of a given year being
4due by October 31 of such year, and with the return for
5October, November and December of a given year being due by
6January 31 of the following year.
7 If the operator's average monthly tax liability to the
8Department does not exceed $50, the Department may authorize
9his returns to be filed on an annual basis, with the return for
10a given year being due by January 31 of the following year.
11 Such quarter annual and annual returns, as to form and
12substance, shall be subject to the same requirements as monthly
13returns.
14 Notwithstanding any other provision in this Act concerning
15the time within which an operator may file his return, in the
16case of any operator who ceases to engage in a kind of business
17which makes him responsible for filing returns under this Act,
18such operator shall file a final return under this Act with the
19Department not more than 1 month after discontinuing such
20business.
21 Where the same person has more than 1 business registered
22with the Department under separate registrations under this
23Act, such person shall not file each return that is due as a
24single return covering all such registered businesses, but
25shall file separate returns for each such registered business.
26 In his return, the operator shall determine the value of

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1any consideration other than money received by him in
2connection with the renting, leasing or letting of rooms in the
3course of his business and he shall include such value in his
4return. Such determination shall be subject to review and
5revision by the Department in the manner hereinafter provided
6for the correction of returns.
7 Where the operator is a corporation, the return filed on
8behalf of such corporation shall be signed by the president,
9vice-president, secretary or treasurer or by the properly
10accredited agent of such corporation.
11 The person filing the return herein provided for shall, at
12the time of filing such return, pay to the Department the
13amount of tax herein imposed. The operator filing the return
14under this Section shall, at the time of filing such return,
15pay to the Department the amount of tax imposed by this Act
16less a discount of 2.1% or $25 per calendar year, whichever is
17greater, which is allowed to reimburse the operator for the
18expenses incurred in keeping records, preparing and filing
19returns, remitting the tax and supplying data to the Department
20on request.
21 If any payment provided for in this Section exceeds the
22operator's liabilities under this Act, as shown on an original
23return, the Department may authorize the operator to credit
24such excess payment against liability subsequently to be
25remitted to the Department under this Act, in accordance with
26reasonable rules adopted by the Department. If the Department

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1subsequently determines that all or any part of the credit
2taken was not actually due to the operator, the operator's
3discount shall be reduced by an amount equal to the difference
4between the discount as applied to the credit taken and that
5actually due, and that operator shall be liable for penalties
6and interest on such difference.
7 There shall be deposited in the Build Illinois Fund in the
8State Treasury for each State fiscal year 40% of the amount of
9total net proceeds from the tax imposed by subsection (a) of
10Section 3. Of the remaining 60%, $5,000,000 shall be deposited
11in the Illinois Sports Facilities Fund and credited to the
12Subsidy Account each fiscal year by making monthly deposits in
13the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
14such deposits for prior months, and an additional $8,000,000
15shall be deposited in the Illinois Sports Facilities Fund and
16credited to the Advance Account each fiscal year by making
17monthly deposits in the amount of 1/8 of $8,000,000 plus any
18cumulative deficiencies in such deposits for prior months;
19provided, that for fiscal years ending after June 30, 2001, the
20amount to be so deposited into the Illinois Sports Facilities
21Fund and credited to the Advance Account each fiscal year shall
22be increased from $8,000,000 to the then applicable Advance
23Amount and the required monthly deposits beginning with July
242001 shall be in the amount of 1/8 of the then applicable
25Advance Amount plus any cumulative deficiencies in those
26deposits for prior months. (The deposits of the additional

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1$8,000,000 or the then applicable Advance Amount, as
2applicable, during each fiscal year shall be treated as
3advances of funds to the Illinois Sports Facilities Authority
4for its corporate purposes to the extent paid to the Authority
5or its trustee and shall be repaid into the General Revenue
6Fund in the State Treasury by the State Treasurer on behalf of
7the Authority pursuant to Section 19 of the Illinois Sports
8Facilities Authority Act, as amended. If in any fiscal year the
9full amount of the then applicable Advance Amount is not repaid
10into the General Revenue Fund, then the deficiency shall be
11paid from the amount in the Local Government Distributive Fund
12that would otherwise be allocated to the City of Chicago under
13the State Revenue Sharing Act.)
14 For purposes of the foregoing paragraph, the term "Advance
15Amount" means, for fiscal year 2002, $22,179,000, and for
16subsequent fiscal years through fiscal year 2032, 105.615% of
17the Advance Amount for the immediately preceding fiscal year,
18rounded up to the nearest $1,000.
19 Of the remaining 60% of the amount of total net proceeds
20prior to August 1, 2011 from the tax imposed by subsection (a)
21of Section 3 after all required deposits in the Illinois Sports
22Facilities Fund, the amount equal to 8% of the net revenue
23realized from this Act plus an amount equal to 8% of the net
24revenue realized from any tax imposed under Section 4.05 of the
25Chicago World's Fair-1992 Authority Act during the preceding
26month shall be deposited in the Local Tourism Fund each month

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1for purposes authorized by Section 605-705 of the Department of
2Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
3the remaining 60% of the amount of total net proceeds beginning
4on August 1, 2011 from the tax imposed by subsection (a) of
5Section 3 after all required deposits in the Illinois Sports
6Facilities Fund, an amount equal to 8% of the net revenue
7realized from this Act plus an amount equal to 8% of the net
8revenue realized from any tax imposed under Section 4.05 of the
9Chicago World's Fair-1992 Authority Act during the preceding
10month shall be deposited as follows: 18% of such amount shall
11be deposited into the Chicago Travel Industry Promotion Fund
12for the purposes described in subsection (n) of Section 5 of
13the Metropolitan Pier and Exposition Authority Act and the
14remaining 82% of such amount shall be deposited into the Local
15Tourism Fund each month for purposes authorized by Section
16605-705 of the Department of Commerce and Economic Opportunity
17Law. Beginning on August 1, 1999 and ending on July 31, 2011,
18an amount equal to 4.5% of the net revenue realized from the
19Hotel Operators' Occupation Tax Act during the preceding month
20shall be deposited into the International Tourism Fund for the
21purposes authorized in Section 605-707 of the Department of
22Commerce and Economic Opportunity Law. Beginning on August 1,
232011, an amount equal to 4.5% of the net revenue realized from
24this Act during the preceding month shall be deposited as
25follows: 55% of such amount shall be deposited into the Chicago
26Travel Industry Promotion Fund for the purposes described in

SB1285 Engrossed- 181 -LRB100 08067 HLH 18153 b
1subsection (n) of Section 5 of the Metropolitan Pier and
2Exposition Authority Act and the remaining 45% of such amount
3deposited into the International Tourism Fund for the purposes
4authorized in Section 605-707 of the Department of Commerce and
5Economic Opportunity Law. "Net revenue realized for a month"
6means the revenue collected by the State under that Act during
7the previous month less the amount paid out during that same
8month as refunds to taxpayers for overpayment of liability
9under that Act.
10 After making all these deposits, all other proceeds of the
11tax imposed under subsection (a) of Section 3 shall be
12deposited in the General Revenue Fund in the State Treasury.
13All moneys received by the Department from the additional tax
14imposed under subsection (b) of Section 3 shall be deposited
15into the Build Illinois Fund in the State Treasury.
16 The Department may, upon separate written notice to a
17taxpayer, require the taxpayer to prepare and file with the
18Department on a form prescribed by the Department within not
19less than 60 days after receipt of the notice an annual
20information return for the tax year specified in the notice.
21Such annual return to the Department shall include a statement
22of gross receipts as shown by the operator's last State income
23tax return. If the total receipts of the business as reported
24in the State income tax return do not agree with the gross
25receipts reported to the Department for the same period, the
26operator shall attach to his annual information return a

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1schedule showing a reconciliation of the 2 amounts and the
2reasons for the difference. The operator's annual information
3return to the Department shall also disclose pay roll
4information of the operator's business during the year covered
5by such return and any additional reasonable information which
6the Department deems would be helpful in determining the
7accuracy of the monthly, quarterly or annual tax returns by
8such operator as hereinbefore provided for in this Section.
9 If the annual information return required by this Section
10is not filed when and as required the taxpayer shall be liable
11for a penalty in an amount determined in accordance with
12Section 3-4 of the Uniform Penalty and Interest Act until such
13return is filed as required, the penalty to be assessed and
14collected in the same manner as any other penalty provided for
15in this Act.
16 The chief executive officer, proprietor, owner or highest
17ranking manager shall sign the annual return to certify the
18accuracy of the information contained therein. Any person who
19willfully signs the annual return containing false or
20inaccurate information shall be guilty of perjury and punished
21accordingly. The annual return form prescribed by the
22Department shall include a warning that the person signing the
23return may be liable for perjury.
24 The foregoing portion of this Section concerning the filing
25of an annual information return shall not apply to an operator
26who is not required to file an income tax return with the

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1United States Government.
2(Source: P.A. 97-617, eff. 10-26-11.)
3 Section 75. The Live Adult Entertainment Facility
4Surcharge Act is amended by changing Section 10 as follows:
5 (35 ILCS 175/10)
6 Sec. 10. Surcharge imposed; returns.
7 (a) An annual surcharge is imposed upon each operator who
8operates a live adult entertainment facility in this State. By
9January 20, 2014, and by January 20 of each year thereafter,
10each operator shall elect to pay the surcharge according to
11either item (1) or item (2) of this subsection.
12 (1) An operator who elects to be subject to this item
13 (1) shall pay to the Department a surcharge imposed upon
14 admissions to a live adult entertainment facility operated
15 by the operator in this State in an amount equal to $3 per
16 person admitted to that live adult entertainment facility.
17 This item (1) does not require a live entertainment
18 facility to impose a fee on a customer of the facility. An
19 operator has the discretion to determine the manner in
20 which the facility derives the moneys required to pay the
21 surcharge imposed under this Section. In the event that an
22 operator has not filed the applicable returns under the
23 Retailers' Occupation Tax Act for a full calendar year
24 prior to any January 20, then such operator shall pay the

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1 surcharge under this Act pursuant to this item (1) for
2 moneys owed to the Department subject to this Act for the
3 previous calendar year.
4 (2) An operator may, in the alternative, pay to the
5 Department the surcharge as follows:
6 (A) If the gross receipts received by the live
7 adult entertainment facility during the preceding
8 calendar year, upon the basis of which a tax is imposed
9 under Section 2 of the Retailers' Occupation Tax Act,
10 are equal or greater than $2,000,000 during the
11 preceding calendar year, and if the operator elects to
12 be subject to this item (2), then the operator shall
13 pay the Department a surcharge of $25,000.
14 (B) If the gross receipts received by the live
15 adult entertainment facility during the preceding
16 calendar year, upon the basis of which a tax is imposed
17 under Section 2 of the Retailers' Occupation Tax Act,
18 are equal to or greater than $500,000 but less than
19 $2,000,000 during the preceding calendar year, and if
20 the operator elects to be subject to this item (2),
21 then the operator shall pay to the Department a
22 surcharge of $15,000.
23 (C) If the gross receipts received by the live
24 adult entertainment facility during the preceding
25 calendar year, upon the basis of which a tax is imposed
26 under Section 2 of the Retailers' Occupation Tax Act,

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1 are less than $500,000 during the preceding calendar
2 year, and if the operator elects to be subject to this
3 item (2), then the operator shall pay the Department a
4 surcharge of $5,000.
5 (b) For each live adult entertainment facility paying the
6surcharge as set forth in item (1) of subsection (a) of this
7Section, the operator must file a return electronically as
8provided by the Department and remit payment to the Department
9on an annual basis no later than January 20 covering the
10previous calendar year. Each return made to the Department must
11state the following:
12 (1) the name of the operator;
13 (2) the address of the live adult entertainment
14 facility and the address of the principal place of business
15 (if that is a different address) of the operator;
16 (3) the total number of admissions to the facility in
17 the preceding calendar year; and
18 (4) the total amount of surcharge collected in the
19 preceding calendar year.
20 Notwithstanding any other provision of this subsection
21concerning the time within which an operator may file his or
22her return, if an operator ceases to operate a live adult
23entertainment facility, then he or she must file a final return
24under this Act with the Department not more than one calendar
25month after discontinuing that business.
26 (c) For each live adult entertainment facility paying the

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1surcharge as set forth in item (2) of subsection (a) of this
2Section, the operator must file a return electronically as
3provided by the Department and remit payment to the Department
4on an annual basis no later than January 20 covering the
5previous calendar year. Each return made to the Department must
6state the following:
7 (1) the name of the operator;
8 (2) the address of the live adult entertainment
9 facility and the address of the principal place of business
10 (if that is a different address) of the operator;
11 (3) the gross receipts received by the live adult
12 entertainment facility during the preceding calendar year,
13 upon the basis of which tax is imposed under Section 2 of
14 the Retailers' Occupation Tax Act; and
15 (4) the applicable surcharge from Section 10(a)(2) of
16 this Act to be paid by the operator.
17 Notwithstanding any other provision of this subsection
18concerning the time within which an operator may file his or
19her return, if an operator ceases to operate a live adult
20entertainment facility, then he or she must file a final return
21under this Act with the Department not more than one calendar
22month after discontinuing that business.
23 (d) Beginning January 1, 2014, the Department shall pay all
24proceeds collected from the surcharge imposed under this Act
25into the Sexual Assault Services and Prevention Fund, less 2%
26of those proceeds, which shall be paid into the Tax Compliance

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1and Administration Fund in the State treasury from which it
2shall be appropriated to the Department to cover the costs of
3the Department in administering and enforcing the provisions of
4this Act.
5 (e) If any payment provided for in this Section exceeds the
6operator's liabilities under this Act, as shown on an original
7return, the operator may credit such excess payment against
8liability subsequently to be remitted to the Department under
9this Act, in accordance with reasonable rules adopted by the
10Department.
11(Source: P.A. 97-1035, eff. 1-1-13.)
12 Section 85. The Illinois Hydraulic Fracturing Tax Act is
13amended by changing Sections 2-45 and 2-50 as follows:
14 (35 ILCS 450/2-45)
15 Sec. 2-45. Purchaser's return and tax remittance. Each
16purchaser shall make a return to the Department showing the
17quantity of oil or gas purchased during the month for which the
18return is filed, the price paid therefor, total value, the name
19and address of the operator or other person from whom the same
20was purchased, a description of the production unit in the
21manner prescribed by the Department from which such oil or gas
22was severed and the amount of tax due from each production unit
23for each calendar month. All taxes due, or to be remitted, by
24the purchaser shall accompany this return. The return shall be

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1filed on or before the last day of the month after the calendar
2month for which the return is required. The Department shall
3forward the necessary information to each Chief County
4Assessment Officer for the administration and application of ad
5valorem real property taxes at the county level. This
6information shall be forwarded to the Chief County Assessment
7Officers in a yearly summary before March 1 of the following
8calendar year. The Department may require any additional report
9or information it may deem necessary for the proper
10administration of this Act.
11 Such returns shall be filed electronically in the manner
12prescribed by the Department. Purchasers shall make all
13payments of that tax to the Department by electronic funds
14transfer unless, as provided by rule, the Department grants an
15exception upon petition of a purchaser. Purchasers' returns
16must be accompanied by appropriate computer generated magnetic
17media supporting schedule data in the format required by the
18Department, unless, as provided by rule, the Department grants
19an exception upon petition of a purchaser.
20 If any payment provided for in this Section exceeds the
21purchaser's liabilities under this Act, as shown on an original
22return, the purchaser may credit such excess payment against
23liability subsequently to be remitted to the Department under
24this Act, in accordance with reasonable rules adopted by the
25Department.
26(Source: P.A. 98-22, eff. 6-17-13; 98-23, eff. 6-17-13; 98-756,

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1eff. 7-16-14.)
2 (35 ILCS 450/2-50)
3 Sec. 2-50. Operator returns; payment of tax.
4 (a) If, on or after July 1, 2013, oil or gas is transported
5off the production unit where severed by the operator, used on
6the production unit where severed, or if the manufacture and
7conversion of oil and gas into refined products occurs on the
8production unit where severed, the operator is responsible for
9remitting the tax imposed under subsection (a) of Section 2-15,
10on or before the last day of the month following the end of the
11calendar month in which the oil and gas is removed from the
12production unit, and such payment shall be accompanied by a
13return to the Department showing the gross quantity of oil or
14gas removed during the month for which the return is filed, the
15price paid therefor, and if no price is paid therefor, the
16value of the oil and gas, a description of the production unit
17from which such oil or gas was severed, and the amount of tax.
18The Department may require any additional information it may
19deem necessary for the proper administration of this Act.
20 (b) Operators shall file all returns electronically in the
21manner prescribed by the Department unless, as provided by
22rule, the Department grants an exception upon petition of an
23operator. Operators shall make all payments of that tax to the
24Department by electronic funds transfer unless, as provided by
25rule, the Department grants an exception upon petition of an

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1operator. Operators' returns must be accompanied by
2appropriate computer generated magnetic media supporting
3schedule data in the format required by the Department, unless,
4as provided by rule, the Department grants an exception upon
5petition of a purchaser.
6 (c) Any operator who makes a monetary payment to a producer
7for his or her portion of the value of products from a
8production unit shall withhold from such payment the amount of
9tax due from the producer. Any operator who pays any tax due
10from a producer shall be entitled to reimbursement from the
11producer for the tax so paid and may take credit for such
12amount from any monetary payment to the producer for the value
13of products. To the extent that an operator required to collect
14the tax imposed by this Act has actually collected that tax,
15such tax is held in trust for the benefit of the State of
16Illinois.
17 (d) In the event the operator fails to make payment of the
18tax to the State as required herein, the operator shall be
19liable for the tax. A producer shall be entitled to bring an
20action against such operator to recover the amount of tax so
21withheld together with penalties and interest which may have
22accrued by failure to make such payment. A producer shall be
23entitled to all attorney fees and court costs incurred in such
24action. To the extent that a producer liable for the tax
25imposed by this Act collects the tax, and any penalties and
26interest, from an operator, such tax, penalties, and interest

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1are held in trust by the producer for the benefit of the State
2of Illinois.
3 (e) When the title to any oil or gas severed from the earth
4or water is in dispute and the operator of such oil or gas is
5withholding payments on account of litigation, or for any other
6reason, such operator is hereby authorized, empowered and
7required to deduct from the gross amount thus held the amount
8of the tax imposed and to make remittance thereof to the
9Department as provided in this Section.
10 (f) An operator required to file a return and pay the tax
11under this Section shall register with the Department.
12Application for a certificate of registration shall be made to
13the Department upon forms furnished by the Department and shall
14contain any reasonable information the Department may require.
15Upon receipt of the application for a certificate of
16registration in proper form, the Department shall issue to the
17applicant a certificate of registration.
18 (g) If oil or gas is transported off the production unit
19where severed by the operator and sold to a purchaser or
20refiner, the State shall have a lien on all the oil or gas
21severed from the production unit in this State in the hands of
22the operator, the first or any subsequent purchaser thereof, or
23refiner to secure the payment of the tax. If a lien is filed by
24the Department, the purchaser or refiner shall withhold from
25the operator the amount of tax, penalty and interest identified
26in the lien.

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1 (h) If any payment provided for in this Section exceeds the
2operator's liabilities under this Act, as shown on an original
3return, the operator may credit such excess payment against
4liability subsequently to be remitted to the Department under
5this Act, in accordance with reasonable rules adopted by the
6Department.
7(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
8 Section 90. The Motor Fuel Tax Law is amended by changing
9Sections 2b, 5, 5a, and 13 as follows:
10 (35 ILCS 505/2b) (from Ch. 120, par. 418b)
11 Sec. 2b. Receiver's monthly return. In addition to the tax
12collection and reporting responsibilities imposed elsewhere in
13this Act, a person who is required to pay the tax imposed by
14Section 2a of this Act shall pay the tax to the Department by
15return showing all fuel purchased, acquired or received and
16sold, distributed or used during the preceding calendar month
17including losses of fuel as the result of evaporation or
18shrinkage due to temperature variations, and such other
19reasonable information as the Department may require. Losses of
20fuel as the result of evaporation or shrinkage due to
21temperature variations may not exceed 1% of the total gallons
22in storage at the beginning of the month, plus the receipts of
23gallonage during the month, minus the gallonage remaining in
24storage at the end of the month. Any loss reported that is in

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1excess of this amount shall be subject to the tax imposed by
2Section 2a of this Law. On and after July 1, 2001, for each
36-month period January through June, net losses of fuel (for
4each category of fuel that is required to be reported on a
5return) as the result of evaporation or shrinkage due to
6temperature variations may not exceed 1% of the total gallons
7in storage at the beginning of each January, plus the receipts
8of gallonage each January through June, minus the gallonage
9remaining in storage at the end of each June. On and after July
101, 2001, for each 6-month period July through December, net
11losses of fuel (for each category of fuel that is required to
12be reported on a return) as the result of evaporation or
13shrinkage due to temperature variations may not exceed 1% of
14the total gallons in storage at the beginning of each July,
15plus the receipts of gallonage each July through December,
16minus the gallonage remaining in storage at the end of each
17December. Any net loss reported that is in excess of this
18amount shall be subject to the tax imposed by Section 2a of
19this Law. For purposes of this Section, "net loss" means the
20number of gallons gained through temperature variations minus
21the number of gallons lost through temperature variations or
22evaporation for each of the respective 6-month periods.
23 The return shall be prescribed by the Department and shall
24be filed between the 1st and 20th days of each calendar month.
25The Department may, in its discretion, combine the returns
26filed under this Section, Section 5, and Section 5a of this

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1Act. The return must be accompanied by appropriate
2computer-generated magnetic media supporting schedule data in
3the format required by the Department, unless, as provided by
4rule, the Department grants an exception upon petition of a
5taxpayer. If the return is filed timely, the seller shall take
6a discount of 2% through June 30, 2003 and 1.75% thereafter
7which is allowed to reimburse the seller for the expenses
8incurred in keeping records, preparing and filing returns,
9collecting and remitting the tax and supplying data to the
10Department on request. The discount, however, shall be
11applicable only to the amount of payment which accompanies a
12return that is filed timely in accordance with this Section.
13 If any payment provided for in this Section exceeds the
14receiver's liabilities under this Act, as shown on an original
15return, the Department may authorize the receiver to credit
16such excess payment against liability subsequently to be
17remitted to the Department under this Act, in accordance with
18reasonable rules adopted by the Department. If the Department
19subsequently determines that all or any part of the credit
20taken was not actually due to the receiver, the receiver's
21discount shall be reduced by an amount equal to the difference
22between the discount as applied to the credit taken and that
23actually due, and that receiver shall be liable for penalties
24and interest on such difference.
25(Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)

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1 (35 ILCS 505/5) (from Ch. 120, par. 421)
2 Sec. 5. Distributor's monthly return. Except as
3hereinafter provided, a person holding a valid unrevoked
4license to act as a distributor of motor fuel shall, between
5the 1st and 20th days of each calendar month, make return to
6the Department, showing an itemized statement of the number of
7invoiced gallons of motor fuel of the types specified in this
8Section which were purchased, acquired, received, or exported
9during the preceding calendar month; the amount of such motor
10fuel produced, refined, compounded, manufactured, blended,
11sold, distributed, exported, and used by the licensed
12distributor during the preceding calendar month; the amount of
13such motor fuel lost or destroyed during the preceding calendar
14month; the amount of such motor fuel on hand at the close of
15business for such month; and such other reasonable information
16as the Department may require. If a distributor's only
17activities with respect to motor fuel are either: (1)
18production of alcohol in quantities of less than 10,000 proof
19gallons per year or (2) blending alcohol in quantities of less
20than 10,000 proof gallons per year which such distributor has
21produced, he shall file returns on an annual basis with the
22return for a given year being due by January 20 of the
23following year. Distributors whose total production of alcohol
24(whether blended or not) exceeds 10,000 proof gallons per year,
25based on production during the preceding (calendar) year or as
26reasonably projected by the Department if one calendar year's

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1record of production cannot be established, shall file returns
2between the 1st and 20th days of each calendar month as
3hereinabove provided.
4 The types of motor fuel referred to in the preceding
5paragraph are: (A) All products commonly or commercially known
6or sold as gasoline (including casing-head and absorption or
7natural gasoline), gasohol, motor benzol or motor benzene
8regardless of their classification or uses; and (B) all
9combustible gases which exist in a gaseous state at 60 degrees
10Fahrenheit and at 14.7 pounds per square inch absolute
11including, but not limited to, liquefied petroleum gases used
12for highway purposes; and (C) special fuel. Only those
13quantities of combustible gases (example (B) above) which are
14used or sold by the distributor to be used to propel motor
15vehicles on the public highways, or which are delivered into a
16storage tank that is located at a facility that has withdrawal
17facilities which are readily accessible to and are capable of
18dispensing combustible gases into the fuel supply tanks of
19motor vehicles, shall be subject to return. For purposes of
20this Section, a facility is considered to have withdrawal
21facilities that are not "readily accessible to and capable of
22dispensing combustible gases into the fuel supply tanks of
23motor vehicles" only if the combustible gases are delivered
24from: (i) a dispenser hose that is short enough so that it will
25not reach the fuel supply tank of a motor vehicle or (ii) a
26dispenser that is enclosed by a fence or other physical barrier

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1so that a vehicle cannot pull alongside the dispenser to permit
2fueling. For the purposes of this Act, liquefied petroleum
3gases shall mean and include any material having a vapor
4pressure not exceeding that allowed for commercial propane
5composed predominantly of the following hydrocarbons, either
6by themselves or as mixtures: Propane, Propylene, Butane
7(normal butane or iso-butane) and Butylene (including
8isomers).
9 In case of a sale of special fuel to someone other than a
10licensed distributor, or a licensed supplier, for a use other
11than in motor vehicles, the distributor shall show in his
12return the amount of invoiced gallons sold and the name and
13address of the purchaser in addition to any other information
14the Department may require.
15 All special fuel sold or used for non-highway purposes must
16have a dye added in accordance with Section 4d of this Law.
17 In case of a tax-free sale, as provided in Section 6, of
18motor fuel which the distributor is required by this Section to
19include in his return to the Department, the distributor in his
20return shall show: (1) If the sale is made to another licensed
21distributor the amount sold and the name, address and license
22number of the purchasing distributor; (2) if the sale is made
23to a person where delivery is made outside of this State the
24name and address of such purchaser and the point of delivery
25together with the date and amount delivered; (3) if the sale is
26made to the Federal Government or its instrumentalities the

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1amount sold; (4) if the sale is made to a municipal corporation
2owning and operating a local transportation system for public
3service in this State the name and address of such purchaser,
4and the amount sold, as evidenced by official forms of
5exemption certificates properly executed and furnished by such
6purchaser; (5) if the sale is made to a privately owned public
7utility owning and operating 2-axle vehicles designed and used
8for transporting more than 7 passengers, which vehicles are
9used as common carriers in general transportation of
10passengers, are not devoted to any specialized purpose and are
11operated entirely within the territorial limits of a single
12municipality or of any group of contiguous municipalities or in
13a close radius thereof, and the operations of which are subject
14to the regulations of the Illinois Commerce Commission, then
15the name and address of such purchaser and the amount sold as
16evidenced by official forms of exemption certificates properly
17executed and furnished by the purchaser; (6) if the product
18sold is special fuel and if the sale is made to a licensed
19supplier under conditions which qualify the sale for tax
20exemption under Section 6 of this Act, the amount sold and the
21name, address and license number of the purchaser; and (7) if a
22sale of special fuel is made to someone other than a licensed
23distributor, or a licensed supplier, for a use other than in
24motor vehicles, by making a specific notation thereof on the
25invoice or sales slip covering such sales and obtaining such
26supporting documentation as may be required by the Department.

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1 All special fuel sold or used for non-highway purposes must
2have a dye added in accordance with Section 4d of this Law.
3 A person whose license to act as a distributor of motor
4fuel has been revoked shall make a return to the Department
5covering the period from the date of the last return to the
6date of the revocation of the license, which return shall be
7delivered to the Department not later than 10 days from the
8date of the revocation or termination of the license of such
9distributor; the return shall in all other respects be subject
10to the same provisions and conditions as returns by
11distributors licensed under the provisions of this Act.
12 The records, waybills and supporting documents kept by
13railroads and other common carriers in the regular course of
14business shall be prima facie evidence of the contents and
15receipt of cars or tanks covered by those records, waybills or
16supporting documents.
17 If the Department has reason to believe and does believe
18that the amount shown on the return as purchased, acquired,
19received, exported, sold, used, lost or destroyed is incorrect,
20or that an amount of motor fuel of the types required by the
21second paragraph of this Section to be reported to the
22Department has not been correctly reported the Department shall
23fix an amount for such receipt, sales, export, use, loss or
24destruction according to its best judgment and information,
25which amount so fixed by the Department shall be prima facie
26correct. All returns shall be made on forms prepared and

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1furnished by the Department, and shall contain such other
2information as the Department may reasonably require. The
3return must be accompanied by appropriate computer-generated
4magnetic media supporting schedule data in the format required
5by the Department, unless, as provided by rule, the Department
6grants an exception upon petition of a taxpayer. All licensed
7distributors shall report all losses of motor fuel sustained on
8account of fire, theft, spillage, spoilage, leakage, or any
9other provable cause when filing the return for the period
10during which the loss occurred. If the distributor reports
11losses due to fire or theft, then the distributor must include
12fire department or police department reports and any other
13documentation that the Department may require. The mere making
14of the report does not assure the allowance of the loss as a
15reduction in tax liability. Losses of motor fuel as the result
16of evaporation or shrinkage due to temperature variations may
17not exceed 1% of the total gallons in storage at the beginning
18of the month, plus the receipts of gallonage during the month,
19minus the gallonage remaining in storage at the end of the
20month. Any loss reported that is in excess of 1% shall be
21subject to the tax imposed by Section 2 of this Law. On and
22after July 1, 2001, for each 6-month period January through
23June, net losses of motor fuel (for each category of motor fuel
24that is required to be reported on a return) as the result of
25evaporation or shrinkage due to temperature variations may not
26exceed 1% of the total gallons in storage at the beginning of

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1each January, plus the receipts of gallonage each January
2through June, minus the gallonage remaining in storage at the
3end of each June. On and after July 1, 2001, for each 6-month
4period July through December, net losses of motor fuel (for
5each category of motor fuel that is required to be reported on
6a return) as the result of evaporation or shrinkage due to
7temperature variations may not exceed 1% of the total gallons
8in storage at the beginning of each July, plus the receipts of
9gallonage each July through December, minus the gallonage
10remaining in storage at the end of each December. Any net loss
11reported that is in excess of this amount shall be subject to
12the tax imposed by Section 2 of this Law. For purposes of this
13Section, "net loss" means the number of gallons gained through
14temperature variations minus the number of gallons lost through
15temperature variations or evaporation for each of the
16respective 6-month periods.
17 If any payment provided for in this Section exceeds the
18distributor's liabilities under this Act, as shown on an
19original return, the Department may authorize the distributor
20to credit such excess payment against liability subsequently to
21be remitted to the Department under this Act, in accordance
22with reasonable rules adopted by the Department. If the
23Department subsequently determines that all or any part of the
24credit taken was not actually due to the distributor, the
25distributor's discount shall be reduced by an amount equal to
26the difference between the discount as applied to the credit

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1taken and that actually due, and that distributor shall be
2liable for penalties and interest on such difference.
3(Source: P.A. 96-1384, eff. 7-29-10.)
4 (35 ILCS 505/5a) (from Ch. 120, par. 421a)
5 Sec. 5a. Supplier's monthly return. A person holding a
6valid unrevoked license to act as a supplier of special fuel
7shall, between the 1st and 20th days of each calendar month,
8make return to the Department showing an itemized statement of
9the number of invoiced gallons of special fuel acquired,
10received, purchased, sold, exported, or used during the
11preceding calendar month; the amount of special fuel sold,
12distributed, exported, and used by the licensed supplier during
13the preceding calendar month; the amount of special fuel lost
14or destroyed during the preceding calendar month; the amount of
15special fuel on hand at the close of business for the preceding
16calendar month; and such other reasonable information as the
17Department may require.
18 A person whose license to act as a supplier of special fuel
19has been revoked shall make a return to the Department covering
20the period from the date of the last return to the date of the
21revocation of the license, which return shall be delivered to
22the Department not later than 10 days from the date of the
23revocation or termination of the license of such supplier. The
24return shall in all other respects be subject to the same
25provisions and conditions as returns by suppliers licensed

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1under this Act.
2 The records, waybills and supporting documents kept by
3railroads and other common carriers in the regular course of
4business shall be prima facie evidence of the contents and
5receipt of cars or tanks covered by those records, waybills or
6supporting documents.
7 If the Department has reason to believe and does believe
8that the amount shown on the return as purchased, acquired,
9received, sold, exported, used, or lost is incorrect, or that
10an amount of special fuel of the type required by the 1st
11paragraph of this Section to be reported to the Department by
12suppliers has not been correctly reported as a purchase,
13receipt, sale, use, export, or loss the Department shall fix an
14amount for such purchase, receipt, sale, use, export, or loss
15according to its best judgment and information, which amount so
16fixed by the Department shall be prima facie correct. All
17licensed suppliers shall report all losses of special fuel
18sustained on account of fire, theft, spillage, spoilage,
19leakage, or any other provable cause when filing the return for
20the period during which the loss occurred. If the supplier
21reports losses due to fire or theft, then the supplier must
22include fire department or police department reports and any
23other documentation that the Department may require. The mere
24making of the report does not assure the allowance of the loss
25as a reduction in tax liability. Losses of special fuel as the
26result of evaporation or shrinkage due to temperature

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1variations may not exceed 1% of the total gallons in storage at
2the beginning of the month, plus the receipts of gallonage
3during the month, minus the gallonage remaining in storage at
4the end of the month.
5 Any loss reported that is in excess of 1% shall be subject
6to the tax imposed by Section 2 of this Law. On and after July
71, 2001, for each 6-month period January through June, net
8losses of special fuel (for each category of special fuel that
9is required to be reported on a return) as the result of
10evaporation or shrinkage due to temperature variations may not
11exceed 1% of the total gallons in storage at the beginning of
12each January, plus the receipts of gallonage each January
13through June, minus the gallonage remaining in storage at the
14end of each June. On and after July 1, 2001, for each 6-month
15period July through December, net losses of special fuel (for
16each category of special fuel that is required to be reported
17on a return) as the result of evaporation or shrinkage due to
18temperature variations may not exceed 1% of the total gallons
19in storage at the beginning of each July, plus the receipts of
20gallonage each July through December, minus the gallonage
21remaining in storage at the end of each December. Any net loss
22reported that is in excess of this amount shall be subject to
23the tax imposed by Section 2 of this Law. For purposes of this
24Section, "net loss" means the number of gallons gained through
25temperature variations minus the number of gallons lost through
26temperature variations or evaporation for each of the

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1respective 6-month periods.
2 In case of a sale of special fuel to someone other than a
3licensed distributor or licensed supplier for a use other than
4in motor vehicles, the supplier shall show in his return the
5amount of invoiced gallons sold and the name and address of the
6purchaser in addition to any other information the Department
7may require.
8 All special fuel sold or used for non-highway purposes must
9have a dye added in accordance with Section 4d of this Law.
10 All returns shall be made on forms prepared and furnished
11by the Department and shall contain such other information as
12the Department may reasonably require. The return must be
13accompanied by appropriate computer-generated magnetic media
14supporting schedule data in the format required by the
15Department, unless, as provided by rule, the Department grants
16an exception upon petition of a taxpayer.
17 In case of a tax-free sale, as provided in Section 6a, of
18special fuel which the supplier is required by this Section to
19include in his return to the Department, the supplier in his
20return shall show: (1) If the sale of special fuel is made to
21the Federal Government or its instrumentalities; (2) if the
22sale of special fuel is made to a municipal corporation owning
23and operating a local transportation system for public service
24in this State, the name and address of such purchaser and the
25amount sold, as evidenced by official forms of exemption
26certificates properly executed and furnished by such

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1purchaser; (3) if the sale of special fuel is made to a
2privately owned public utility owning and operating 2-axle
3vehicles designed and used for transporting more than 7
4passengers, which vehicles are used as common carriers in
5general transportation of passengers, are not devoted to any
6specialized purpose and are operated entirely within the
7territorial limits of a single municipality or of any group of
8contiguous municipalities or in a close radius thereof, and the
9operations of which are subject to the regulations of the
10Illinois Commerce Commission, then the name and address of such
11purchaser and the amount sold, as evidenced by official forms
12of exemption certificates properly executed and furnished by
13such purchaser; (4) if the product sold is special fuel and if
14the sale is made to a licensed supplier or to a licensed
15distributor under conditions which qualify the sale for tax
16exemption under Section 6a of this Act, the amount sold and the
17name, address and license number of such purchaser; (5) if a
18sale of special fuel is made to a person where delivery is made
19outside of this State, the name and address of such purchaser
20and the point of delivery together with the date and amount of
21invoiced gallons delivered; and (6) if a sale of special fuel
22is made to someone other than a licensed distributor or a
23licensed supplier, for a use other than in motor vehicles, by
24making a specific notation thereof on the invoice or sales slip
25covering that sale and obtaining such supporting documentation
26as may be required by the Department.

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1 All special fuel sold or used for non-highway purposes must
2have a dye added in accordance with Section 4d of this Law.
3 If any payment provided for in this Section exceeds the
4supplier's liabilities under this Act, as shown on an original
5return, the Department may authorize the supplier to credit
6such excess payment against liability subsequently to be
7remitted to the Department under this Act, in accordance with
8reasonable rules adopted by the Department. If the Department
9subsequently determines that all or any part of the credit
10taken was not actually due to the supplier, the supplier's
11discount shall be reduced by an amount equal to the difference
12between the discount as applied to the credit taken and that
13actually due, and that supplier shall be liable for penalties
14and interest on such difference.
15(Source: P.A. 96-1384, eff. 7-29-10.)
16 (35 ILCS 505/13) (from Ch. 120, par. 429)
17 Sec. 13. Refund of tax paid. Any person other than a
18distributor or supplier, who loses motor fuel through any cause
19or uses motor fuel (upon which he has paid the amount required
20to be collected under Section 2 of this Act) for any purpose
21other than operating a motor vehicle upon the public highways
22or waters, shall be reimbursed and repaid the amount so paid.
23 Any person who purchases motor fuel in Illinois and uses
24that motor fuel in another state and that other state imposes a
25tax on the use of such motor fuel shall be reimbursed and

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1repaid the amount of Illinois tax paid under Section 2 of this
2Act on the motor fuel used in such other state. Reimbursement
3and repayment shall be made by the Department upon receipt of
4adequate proof of taxes directly paid to another state and the
5amount of motor fuel used in that state.
6 Claims based in whole or in part on taxes paid to another
7state shall include (i) a certified copy of the tax return
8filed with such other state by the claimant; (ii) a copy of
9either the cancelled check paying the tax due on such return,
10or a receipt acknowledging payment of the tax due on such tax
11return; and (iii) such other information as the Department may
12reasonably require. This paragraph shall not apply to taxes
13paid on returns filed under Section 13a.3 of this Act.
14 Any person who purchases motor fuel use tax decals as
15required by Section 13a.4 and pays an amount of fees for such
16decals that exceeds the amount due shall be reimbursed and
17repaid the amount of the decal fees that are deemed by the
18department to be in excess of the amount due. Alternatively,
19any person who purchases motor fuel use tax decals as required
20by Section 13a.4 may credit any excess decal payment verified
21by the Department against amounts subsequently due for the
22purchase of additional decals, until such time as no excess
23payment remains.
24 Claims for such reimbursement must be made to the
25Department of Revenue, duly verified by the claimant (or by the
26claimant's legal representative if the claimant has died or

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1become a person under legal disability), upon forms prescribed
2by the Department. The claim must state such facts relating to
3the purchase, importation, manufacture or production of the
4motor fuel by the claimant as the Department may deem
5necessary, and the time when, and the circumstances of its loss
6or the specific purpose for which it was used (as the case may
7be), together with such other information as the Department may
8reasonably require. No claim based upon idle time shall be
9allowed. Claims for reimbursement for overpayment of decal fees
10shall be made to the Department of Revenue, duly verified by
11the claimant (or by the claimant's legal representative if the
12claimant has died or become a person under legal disability),
13upon forms prescribed by the Department. The claim shall state
14facts relating to the overpayment of decal fees, together with
15such other information as the Department may reasonably
16require. Claims for reimbursement of overpayment of decal fees
17paid on or after January 1, 2011 must be filed not later than
18one year after the date on which the fees were paid by the
19claimant. If it is determined that the Department should
20reimburse a claimant for overpayment of decal fees, the
21Department shall first apply the amount of such refund against
22any tax or penalty or interest due by the claimant under
23Section 13a of this Act.
24 Claims for full reimbursement for taxes paid on or before
25December 31, 1999 must be filed not later than one year after
26the date on which the tax was paid by the claimant. If,

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1however, a claim for such reimbursement otherwise meeting the
2requirements of this Section is filed more than one year but
3less than 2 years after that date, the claimant shall be
4reimbursed at the rate of 80% of the amount to which he would
5have been entitled if his claim had been timely filed.
6 Claims for full reimbursement for taxes paid on or after
7January 1, 2000 must be filed not later than 2 years after the
8date on which the tax was paid by the claimant.
9 The Department may make such investigation of the
10correctness of the facts stated in such claims as it deems
11necessary. When the Department has approved any such claim, it
12shall pay to the claimant (or to the claimant's legal
13representative, as such if the claimant has died or become a
14person under legal disability) the reimbursement provided in
15this Section, out of any moneys appropriated to it for that
16purpose.
17 Any distributor or supplier who has paid the tax imposed by
18Section 2 of this Act upon motor fuel lost or used by such
19distributor or supplier for any purpose other than operating a
20motor vehicle upon the public highways or waters may file a
21claim for credit or refund to recover the amount so paid. Such
22claims shall be filed on forms prescribed by the Department.
23Such claims shall be made to the Department, duly verified by
24the claimant (or by the claimant's legal representative if the
25claimant has died or become a person under legal disability),
26upon forms prescribed by the Department. The claim shall state

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1such facts relating to the purchase, importation, manufacture
2or production of the motor fuel by the claimant as the
3Department may deem necessary and the time when the loss or
4nontaxable use occurred, and the circumstances of its loss or
5the specific purpose for which it was used (as the case may
6be), together with such other information as the Department may
7reasonably require. Claims must be filed not later than one
8year after the date on which the tax was paid by the claimant.
9 The Department may make such investigation of the
10correctness of the facts stated in such claims as it deems
11necessary. When the Department approves a claim, the Department
12shall issue a refund or credit memorandum as requested by the
13taxpayer, to the distributor or supplier who made the payment
14for which the refund or credit is being given or, if the
15distributor or supplier has died or become incompetent, to such
16distributor's or supplier's legal representative, as such. The
17amount of such credit memorandum shall be credited against any
18tax due or to become due under this Act from the distributor or
19supplier who made the payment for which credit has been given.
20 Any credit or refund that is allowed under this Section
21shall bear interest at the rate and in the manner specified in
22the Uniform Penalty and Interest Act.
23 In case the distributor or supplier requests and the
24Department determines that the claimant is entitled to a
25refund, such refund shall be made only from such appropriation
26as may be available for that purpose. If it appears unlikely

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1that the amount appropriated would permit everyone having a
2claim allowed during the period covered by such appropriation
3to elect to receive a cash refund, the Department, by rule or
4regulation, shall provide for the payment of refunds in
5hardship cases and shall define what types of cases qualify as
6hardship cases.
7 In any case in which there has been an erroneous refund of
8tax or fees payable under this Section, a notice of tax
9liability may be issued at any time within 3 years from the
10making of that refund, or within 5 years from the making of
11that refund if it appears that any part of the refund was
12induced by fraud or the misrepresentation of material fact. The
13amount of any proposed assessment set forth by the Department
14shall be limited to the amount of the erroneous refund.
15 If no tax is due and no proceeding is pending to determine
16whether such distributor or supplier is indebted to the
17Department for tax, the credit memorandum so issued may be
18assigned and set over by the lawful holder thereof, subject to
19reasonable rules of the Department, to any other licensed
20distributor or supplier who is subject to this Act, and the
21amount thereof applied by the Department against any tax due or
22to become due under this Act from such assignee.
23 If the payment for which the distributor's or supplier's
24claim is filed is held in the protest fund of the State
25Treasury during the pendency of the claim for credit
26proceedings pursuant to the order of the court in accordance

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1with Section 2a of the State Officers and Employees Money
2Disposition Act and if it is determined by the Department or by
3the final order of a reviewing court under the Administrative
4Review Law that the claimant is entitled to all or a part of
5the credit claimed, the claimant, instead of receiving a credit
6memorandum from the Department, shall receive a cash refund
7from the protest fund as provided for in Section 2a of the
8State Officers and Employees Money Disposition Act.
9 If any person ceases to be licensed as a distributor or
10supplier while still holding an unused credit memorandum issued
11under this Act, such person may, at his election (instead of
12assigning the credit memorandum to a licensed distributor or
13licensed supplier under this Act), surrender such unused credit
14memorandum to the Department and receive a refund of the amount
15to which such person is entitled.
16 For claims based upon taxes paid on or before December 31,
172000, a claim based upon the use of undyed diesel fuel shall
18not be allowed except (i) if allowed under the following
19paragraph or (ii) for undyed diesel fuel used by a commercial
20vehicle, as that term is defined in Section 1-111.8 of the
21Illinois Vehicle Code, for any purpose other than operating the
22commercial vehicle upon the public highways and unlicensed
23commercial vehicles operating on private property. Claims
24shall be limited to commercial vehicles that are operated for
25both highway purposes and any purposes other than operating
26such vehicles upon the public highways.

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1 For claims based upon taxes paid on or after January 1,
22000, a claim based upon the use of undyed diesel fuel shall
3not be allowed except (i) if allowed under the preceding
4paragraph or (ii) for claims for the following:
5 (1) Undyed diesel fuel used (i) in a manufacturing
6 process, as defined in Section 2-45 of the Retailers'
7 Occupation Tax Act, wherein the undyed diesel fuel becomes
8 a component part of a product or by-product, other than
9 fuel or motor fuel, when the use of dyed diesel fuel in
10 that manufacturing process results in a product that is
11 unsuitable for its intended use or (ii) for testing
12 machinery and equipment in a manufacturing process, as
13 defined in Section 2-45 of the Retailers' Occupation Tax
14 Act, wherein the testing takes place on private property.
15 (2) Undyed diesel fuel used by a manufacturer on
16 private property in the research and development, as
17 defined in Section 1.29, of machinery or equipment intended
18 for manufacture.
19 (3) Undyed diesel fuel used by a single unit
20 self-propelled agricultural fertilizer implement, designed
21 for on and off road use, equipped with flotation tires and
22 specially adapted for the application of plant food
23 materials or agricultural chemicals.
24 (4) Undyed diesel fuel used by a commercial motor
25 vehicle for any purpose other than operating the commercial
26 motor vehicle upon the public highways. Claims shall be

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1 limited to commercial motor vehicles that are operated for
2 both highway purposes and any purposes other than operating
3 such vehicles upon the public highways.
4 (5) Undyed diesel fuel used by a unit of local
5 government in its operation of an airport if the undyed
6 diesel fuel is used directly in airport operations on
7 airport property.
8 (6) Undyed diesel fuel used by refrigeration units that
9 are permanently mounted to a semitrailer, as defined in
10 Section 1.28 of this Law, wherein the refrigeration units
11 have a fuel supply system dedicated solely for the
12 operation of the refrigeration units.
13 (7) Undyed diesel fuel used by power take-off equipment
14 as defined in Section 1.27 of this Law.
15 (8) Beginning on the effective date of this amendatory
16 Act of the 94th General Assembly, undyed diesel fuel used
17 by tugs and spotter equipment to shift vehicles or parcels
18 on both private and airport property. Any claim under this
19 item (8) may be made only by a claimant that owns tugs and
20 spotter equipment and operates that equipment on both
21 private and airport property. The aggregate of all credits
22 or refunds resulting from claims filed under this item (8)
23 by a claimant in any calendar year may not exceed $100,000.
24 A claim may not be made under this item (8) by the same
25 claimant more often than once each quarter. For the
26 purposes of this item (8), "tug" means a vehicle designed

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1 for use on airport property that shifts custom-designed
2 containers of parcels from loading docks to aircraft, and
3 "spotter equipment" means a vehicle designed for use on
4 both private and airport property that shifts trailers
5 containing parcels between staging areas and loading
6 docks.
7 Any person who has paid the tax imposed by Section 2 of
8this Law upon undyed diesel fuel that is unintentionally mixed
9with dyed diesel fuel and who owns or controls the mixture of
10undyed diesel fuel and dyed diesel fuel may file a claim for
11refund to recover the amount paid. The amount of undyed diesel
12fuel unintentionally mixed must equal 500 gallons or more. Any
13claim for refund of unintentionally mixed undyed diesel fuel
14and dyed diesel fuel shall be supported by documentation
15showing the date and location of the unintentional mixing, the
16number of gallons involved, the disposition of the mixed diesel
17fuel, and any other information that the Department may
18reasonably require. Any unintentional mixture of undyed diesel
19fuel and dyed diesel fuel shall be sold or used only for
20non-highway purposes.
21 The Department shall promulgate regulations establishing
22specific limits on the amount of undyed diesel fuel that may be
23claimed for refund.
24 For purposes of claims for refund, "loss" means the
25reduction of motor fuel resulting from fire, theft, spillage,
26spoilage, leakage, or any other provable cause, but does not

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1include a reduction resulting from evaporation, or shrinkage
2due to temperature variations. In the case of losses due to
3fire or theft, the claimant must include fire department or
4police department reports and any other documentation that the
5Department may require.
6(Source: P.A. 96-1384, eff. 7-29-10.)
7 Section 95. The Gas Revenue Tax Act is amended by changing
8Sections 2a.2 and 3 as follows:
9 (35 ILCS 615/2a.2) (from Ch. 120, par. 467.17a.2)
10 Sec. 2a.2. Annual return, collection and payment. - A
11return with respect to the tax imposed by Section 2a.1 shall be
12made by every person for any taxable period for which such
13person is liable for such tax. Such return shall be made on
14such forms as the Department shall prescribe and shall contain
15the following information:
16 1. Taxpayer's name;
17 2. Address of taxpayer's principal place of business,
18 and address of the principal place of business (if that is
19 a different address) from which the taxpayer engages in the
20 business of distributing, supplying, furnishing or selling
21 gas in this State;
22 3. The total proprietary capital and total long-term
23 debt as of the beginning and end of the taxable period as
24 set forth on the balance sheets included in the taxpayer's

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1 annual report to the Illinois Commerce Commission for the
2 taxable period;
3 4. The taxpayer's base income allocable to Illinois
4 under Sections 301 and 304(a) of the "Illinois Income Tax
5 Act", for the period covered by the return;
6 5. The amount of tax due for the taxable period
7 (computed on the basis of the amounts set forth in Items 3
8 and 4); and
9 6. Such other reasonable information as may be required
10 by forms or regulations prescribed by the Department.
11 The returns prescribed by this Section shall be due and
12shall be filed with the Department not later than the 15th day
13of the third month following the close of the taxable period.
14The taxpayer making the return herein provided for shall, at
15the time of making such return, pay to the Department the
16remaining amount of tax herein imposed and due for the taxable
17period. Each taxpayer shall make estimated quarterly payments
18on the 15th day of the third, sixth, ninth and twelfth months
19of each taxable period. Such estimated payments shall be 25% of
20the tax liability for the immediately preceding taxable period
21or the tax liability that would have been imposed in the
22immediately preceding taxable period if this amendatory Act of
231979 had been in effect. All moneys received by the Department
24under Sections 2a.1 and 2a.2 shall be paid into the Personal
25Property Tax Replacement Fund in the State Treasury.
26 If any payment provided for in this Section exceeds the

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1taxpayer's liabilities under this Act, as shown on an original
2return, the Department may authorize the taxpayer to credit
3such excess payment against liability subsequently to be
4remitted to the Department under this Act, in accordance with
5reasonable rules adopted by the Department.
6(Source: P.A. 87-205.)
7 (35 ILCS 615/3) (from Ch. 120, par. 467.18)
8 Sec. 3. Return of taxpayer; payment of tax. Except as
9provided in this Section, on or before the 15th day of each
10month, each taxpayer shall make a return to the Department for
11the preceding calendar month, stating:
12 1. His name;
13 2. The address of his principal place of business, and
14 the address of the principal place of business (if that is
15 a different address) from which he engages in the business
16 of distributing, supplying, furnishing or selling gas in
17 this State;
18 3. The total number of therms for which payment was
19 received by him from customers during the preceding
20 calendar month and upon the basis of which the tax is
21 imposed;
22 4. Gross receipts which were received by him from
23 customers during the preceding calendar month from such
24 business, including budget plan and other customer-owned
25 amounts applied during such month in payment of charges

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1 includible in gross receipts, and upon the basis of which
2 the tax is imposed;
3 5. Amount of tax (computed upon Items 3 and 4);
4 6. Such other reasonable information as the Department
5 may require.
6 In making such return the taxpayer may use any reasonable
7method to derive reportable "therms" and "gross receipts" from
8his billing and payment records.
9 Any taxpayer required to make payments under this Section
10may make the payments by electronic funds transfer. The
11Department shall adopt rules necessary to effectuate a program
12of electronic funds transfer.
13 If the taxpayer's average monthly tax liability to the
14Department does not exceed $100.00, the Department may
15authorize his returns to be filed on a quarter annual basis,
16with the return for January, February and March of a given year
17being due by April 30 of such year; with the return for April,
18May and June of a given year being due by July 31 of such year;
19with the return for July, August and September of a given year
20being due by October 31 of such year, and with the return for
21October, November and December of a given year being due by
22January 31 of the following year.
23 If the taxpayer's average monthly tax liability to the
24Department does not exceed $20.00, the Department may authorize
25his returns to be filed on an annual basis, with the return for
26a given year being due by January 31 of the following year.

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1 Such quarter annual and annual returns, as to form and
2substance, shall be subject to the same requirements as monthly
3returns.
4 Notwithstanding any other provision in this Act concerning
5the time within which a taxpayer may file his return, in the
6case of any taxpayer who ceases to engage in a kind of business
7which makes him responsible for filing returns under this Act,
8such taxpayer shall file a final return under this Act with the
9Department not more than one month after discontinuing such
10business.
11 In making such return the taxpayer shall determine the
12value of any reportable consideration other than money received
13by him and shall include such value in his return. Such
14determination shall be subject to review and revision by the
15Department in the same manner as is provided in this Act for
16the correction of returns.
17 Each taxpayer whose average monthly liability to the
18Department under this Act was $10,000 or more during the
19preceding calendar year, excluding the month of highest
20liability and the month of lowest liability in such calendar
21year, and who is not operated by a unit of local government,
22shall make estimated payments to the Department on or before
23the 7th, 15th, 22nd and last day of the month during which tax
24liability to the Department is incurred in an amount not less
25than the lower of either 22.5% of the taxpayer's actual tax
26liability for the month or 25% of the taxpayer's actual tax

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1liability for the same calendar month of the preceding year.
2The amount of such quarter monthly payments shall be credited
3against the final tax liability of the taxpayer's return for
4that month. Any outstanding credit, approved by the Department,
5arising from the taxpayer's overpayment of its final tax
6liability for any month may be applied to reduce the amount of
7any subsequent quarter monthly payment or credited against the
8final tax liability of the taxpayer's return for any subsequent
9month. If any quarter monthly payment is not paid at the time
10or in the amount required by this Section, the taxpayer shall
11be liable for penalty and interest on the difference between
12the minimum amount due as a payment and the amount of such
13payment actually and timely paid, except insofar as the
14taxpayer has previously made payments for that month to the
15Department in excess of the minimum payments previously due.
16 If the Director finds that the information required for the
17making of an accurate return cannot reasonably be compiled by a
18taxpayer within 15 days after the close of the calendar month
19for which a return is to be made, he may grant an extension of
20time for the filing of such return for a period of not to
21exceed 31 calendar days. The granting of such an extension may
22be conditioned upon the deposit by the taxpayer with the
23Department of an amount of money not exceeding the amount
24estimated by the Director to be due with the return so
25extended. All such deposits, including any made before the
26effective date of this amendatory Act of 1975 with the

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1Department, shall be credited against the taxpayer's
2liabilities under this Act. If any such deposit exceeds the
3taxpayer's present and probable future liabilities under this
4Act, the Department shall issue to the taxpayer a credit
5memorandum, which may be assigned by the taxpayer to a similar
6taxpayer under this Act, in accordance with reasonable rules
7and regulations to be prescribed by the Department.
8 The taxpayer making the return provided for in this Section
9shall, at the time of making such return, pay to the Department
10the amount of tax imposed by this Act. All moneys received by
11the Department under this Act shall be paid into the General
12Revenue Fund in the State Treasury, except as otherwise
13provided.
14 If any payment provided for in this Section exceeds the
15taxpayer's liabilities under this Act, as shown on an original
16return, the Department may authorize the taxpayer to credit
17such excess payment against liability subsequently to be
18remitted to the Department under this Act, in accordance with
19reasonable rules adopted by the Department.
20(Source: P.A. 90-16, eff. 6-16-97.)
21 Section 100. The Public Utilities Revenue Act is amended by
22changing Section 2a.2 as follows:
23 (35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
24 Sec. 2a.2. Annual return, collection and payment. A return

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1with respect to the tax imposed by Section 2a.1 shall be made
2by every person for any taxable period for which such person is
3liable for such tax. Such return shall be made on such forms as
4the Department shall prescribe and shall contain the following
5information:
6 1. Taxpayer's name;
7 2. Address of taxpayer's principal place of business,
8 and address of the principal place of business (if that is
9 a different address) from which the taxpayer engages in the
10 business of distributing electricity in this State;
11 3. The total equity, in the case of electric
12 cooperatives, in the annual reports filed with the Rural
13 Utilities Service for the taxable period;
14 3a. The total kilowatt-hours of electricity
15 distributed by a taxpayer, other than an electric
16 cooperative, in this State for the taxable period covered
17 by the return;
18 4. The amount of tax due for the taxable period
19 (computed on the basis of the amounts set forth in Items 3
20 and 3a); and
21 5. Such other reasonable information as may be required
22 by forms or regulations prescribed by the Department.
23 The returns prescribed by this Section shall be due and
24shall be filed with the Department not later than the 15th day
25of the third month following the close of the taxable period.
26The taxpayer making the return herein provided for shall, at

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1the time of making such return, pay to the Department the
2remaining amount of tax herein imposed and due for the taxable
3period. Each taxpayer shall make estimated quarterly payments
4