Bill Text: IL SB2169 | 2013-2014 | 98th General Assembly | Chaptered
Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, under each Act, a franchisor that has at least one franchisee shall file an annual return setting forth the name and address of the franchisee, the certificate of registration number and federal identification number of the franchisee, the gross sales of the franchisee, the total amount of sales by the franchisor to the franchisee, and any income reported to the franchisor by the franchisee. Provides that the franchisor must deliver a report to each franchisee containing the information in the return. Provides for penalties for a franchisor required to file a return for failure to file a return or provide the required information.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0496 [SB2169 Detail]
Download: Illinois-2013-SB2169-Chaptered.html
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Public Act 098-0496 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Department of Revenue Law of the
Civil | ||||
Administrative Code of Illinois is amended by changing Section | ||||
2505-380 as follows:
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(20 ILCS 2505/2505-380) (was 20 ILCS 2505/39b47)
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Sec. 2505-380. Revocation of or refusal to issue a | ||||
certificate of
registration, permit, or license. | ||||
(a) The Department has the power to
refuse to issue or , | ||||
after notice and an opportunity for
a hearing, to revoke a | ||||
certificate of registration, permit, or license
issued or | ||||
authorized to be issued by the Department if the applicant for
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or holder of the certificate of registration, permit, or
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license fails to
file a return, or to pay the tax, fee, | ||||
penalty, or interest shown in a
filed
return, or to pay any | ||||
final assessment of tax, fee,
penalty, or interest, as required | ||||
by the tax or fee Act under which the
certificate
of | ||||
registration, permit, or license is required or any other tax | ||||
or fee Act
administered
by the Department.
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(b) The Department may refuse to issue a certificate of | ||||
registration, permit, or license authorized to be issued by the | ||||
Department if a person who is named as the owner, a partner, a |
corporate officer, or, in the case of a limited liability | ||
company, a manager or member, of the applicant on the | ||
application for the certificate of registration, permit or | ||
license, is or has been named as the owner, a partner, a | ||
corporate officer, or in the case of a limited liability | ||
company, a manager or member, on the application for the | ||
certificate of registration, permit, or license of a person | ||
that is in default for moneys due under the tax or fee Act upon | ||
which the certificate of registration, permit, or license is | ||
required or any other tax or fee Act administered by the | ||
Department. For purposes of this Section only, in determining | ||
whether a person is in default for moneys due, the Department | ||
shall include only amounts established as a final liability | ||
within the 20 years prior to the date of the Department's | ||
notice of refusal to issue the certificate of registration, | ||
permit, or license. For purposes of this Section, "person" | ||
means any natural individual, firm, partnership, association, | ||
joint stock company, joint adventure, public or private | ||
corporation, limited liability company, or a receiver, | ||
executor, trustee, guardian or other representative appointed | ||
by order of any court. | ||
(c) When revoking or refusing to issue a certificate of | ||
registration, permit, or license
issued by the Department, the | ||
The procedure for notice and hearing used shall be the | ||
procedure prior to revocation shall be as
provided under the | ||
Act pursuant to which the certificate of registration,
permit, |
or license was issued.
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(Source: P.A. 91-239, eff. 1-1-00.)
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Section 15. The State Finance Act is amended by changing | ||
Section 13.3 as follows:
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(30 ILCS 105/13.3) (from Ch. 127, par. 149.3)
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Sec. 13.3. Petty cash funds; purchasing cards.
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(a) Any State agency may establish and maintain petty cash
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funds for the purpose of making change, purchasing items of | ||
small cost,
payment of postage due, and for other nominal | ||
expenditures which cannot
be administered economically and | ||
efficiently through customary procurement
practices.
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Petty cash funds may be established and maintained from | ||
moneys which
are appropriated to the agency for Contractual | ||
Services. In the case of
an agency which receives a single | ||
appropriation for its ordinary and
contingent expenses, the | ||
agency may establish a petty cash fund from the
appropriated | ||
funds.
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Before the establishment of any petty cash fund, the agency | ||
shall
submit to the State Comptroller a survey of the need for | ||
the fund. The
survey shall also establish that sufficient | ||
internal accounting controls
exist. The Comptroller shall | ||
investigate such need and if he determines
that it exists and | ||
that adequate accounting controls exist, shall
approve the | ||
establishment of the fund. The Comptroller shall have the
power |
to revoke any approval previously made under this Section.
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Petty cash funds established under this Section shall be | ||
operated and
maintained on the imprest system and no fund shall | ||
exceed $1,000, except that
the Department of Revenue may | ||
maintain a fund not exceeding $2,000 for each Department of | ||
Revenue facility and the Secretary of State may maintain a fund | ||
of not exceeding $2,000 for each
Chicago Motor Vehicle | ||
Facility, each Springfield Public Service Facility, and
the | ||
Motor Vehicle Facilities in Champaign, Decatur, Marion, | ||
Naperville, Peoria,
Rockford, Granite City, Quincy, and | ||
Carbondale, to be used solely for the
purpose of making change. | ||
Except for purchases made by procurement card as
provided in | ||
subsection (b) of this Section, single transactions shall be
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limited to amounts less
than $50, and all transactions | ||
occurring in the fund shall be reported and
accounted for as | ||
may be provided in the uniform accounting system developed by
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the State Comptroller and the rules and regulations | ||
implementing that
accounting system. All amounts in any such | ||
fund of less than $1,000 but over
$100 shall be kept in a | ||
checking account in a bank, or savings and loan
association or | ||
trust company which is insured by the United States government
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or any agency of the United States government, except that in | ||
funds maintained
in each Department of Revenue Facility, | ||
Chicago Motor Vehicle Facilities, each Springfield Public | ||
Service Facility,
and the Motor Vehicle Facilities in | ||
Champaign, Decatur, Marion, Naperville,
Peoria, Rockford, |
Granite City, Quincy, and Carbondale, all amounts in the fund
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may be retained on the premises of such facilities.
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No bank or savings and loan association shall receive | ||
public funds as
permitted by this Section, unless it has | ||
complied with the requirements
established pursuant to Section | ||
6 of "An Act relating to certain
investments of public funds by | ||
public agencies", approved July 23, 1943, as
now or hereafter | ||
amended.
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An internal audit shall be performed of any petty cash fund | ||
which
receives reimbursements of more than $5,000 in a fiscal | ||
year.
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Upon succession in the custodianship of any petty cash | ||
fund, both the
former and successor custodians shall sign a | ||
statement, in triplicate,
showing the exact status of the fund | ||
at the time of the transfer. The
original copy shall be kept on | ||
file in the office wherein the fund
exists, and each signer | ||
shall be entitled to retain one copy.
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(b) The Comptroller may provide by rule for the use of | ||
purchasing cards by
State agencies to pay for purchases that | ||
otherwise may be paid out of the
agency's petty cash fund. Any | ||
rule adopted hereunder shall impose a single
transaction limit, | ||
which shall not be greater than $500.
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The rules of the Comptroller may include but shall not be | ||
limited to:
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(1) standards for the issuance of purchasing cards to | ||
State agencies
based upon the best interests of the State;
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(2) procedures for recording purchasing card | ||
transactions
within the State accounting system, which may | ||
provide for summary reporting;
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(3) procedures for auditing purchasing card | ||
transactions on a
post-payment basis;
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(4) standards for awarding contracts with a purchasing | ||
card vendor to
acquire purchasing cards for use by State | ||
agencies; and
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(5) procedures for the Comptroller to charge against | ||
State agency
appropriations for payment of purchasing card | ||
expenditures without the
use of the voucher and warrant | ||
system.
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(c) As used in this Section, "State agency" means any | ||
department,
officer, authority, public corporation, | ||
quasi-public corporation,
commission, board, institution, | ||
State college or university, or other
public agency created by | ||
the State, other than units of local government
and school | ||
districts.
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(Source: P.A. 90-33, eff. 6-27-97; 91-704, eff. 7-1-00.)
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Section 20. The Illinois Income Tax Act is amended by | ||
changing Sections 303, 304, 701, 710, and 905 as follows:
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(35 ILCS 5/303) (from Ch. 120, par. 3-303)
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Sec. 303. (a) In general. Any item of capital gain or loss, | ||
and any
item of income from rents or royalties from real or |
tangible personal
property, interest, dividends, and patent or | ||
copyright royalties, and prizes
awarded under the Illinois | ||
Lottery Law, to the extent such item constitutes
nonbusiness | ||
income, together with any item of deduction directly allocable
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thereto, shall be allocated by any person other than a resident | ||
as provided
in this Section.
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(b) Capital gains and losses. | ||
(1) Real property. Capital gains and
losses from sales | ||
or exchanges of real property are allocable to this State
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if the property is located in this State.
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(2) Tangible personal property. Capital gains and | ||
losses from sales
or exchanges of tangible personal | ||
property are allocable to this State if,
at the time of | ||
such sale or exchange:
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(A) The property had its situs in this State; or
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(B) The taxpayer had its commercial domicile in | ||
this State and was not
taxable in the state in which | ||
the property had its situs.
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(3) Intangibles. Capital gains and losses from sales or | ||
exchanges of
intangible personal property are allocable to | ||
this State if the taxpayer
had its commercial domicile in | ||
this State at the time of such sale or
exchange.
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(c) Rents and royalties. | ||
(1) Real property. Rents and royalties
from real | ||
property are allocable to this State if the property is | ||
located
in this State.
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(2) Tangible personal property. Rents and royalties | ||
from tangible
personal property are allocable to this | ||
State:
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(A) If and to the extent that the property is | ||
utilized in this State; or
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(B) In their entirety if, at the time such rents or | ||
royalties were paid
or accrued, the taxpayer had its | ||
commercial domicile in this State and was
not organized | ||
under the laws of or taxable with respect to such rents | ||
or
royalties in the state in which the property was | ||
utilized.
The extent of utilization of tangible | ||
personal property in a state is
determined by | ||
multiplying the rents or royalties derived from such | ||
property
by a fraction, the numerator of which is the | ||
number of days of physical
location of the property in | ||
the state during the rental or royalty period
in the | ||
taxable year and the denominator of which is the number | ||
of days of
physical location of the property everywhere | ||
during all rental or royalty
periods in the taxable | ||
year. If the physical location of the property
during | ||
the rental or royalty period is unknown or | ||
unascertainable by the
taxpayer, tangible personal | ||
property is utilized in the state in which the
property | ||
was located at the time the rental or royalty payer | ||
obtained
possession.
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(d) Patent and copyright royalties.
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(1) Allocation. Patent and copyright royalties are | ||
allocable to this
State:
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(A) If and to the extent that the patent or | ||
copyright is utilized by the
payer in this State; or
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(B) If and to the extent that the patent or | ||
copyright is utilized by the
payer in a state in which | ||
the taxpayer is not taxable with respect to such
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royalties and, at the time such royalties were paid or | ||
accrued, the
taxpayer had its commercial domicile in | ||
this State.
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(2) Utilization.
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(A) A patent is utilized in a state to the extent | ||
that it is employed in
production, fabrication, | ||
manufacturing or other processing in the state or
to | ||
the extent that a patented product is produced in the | ||
state. If the
basis of receipts from patent royalties | ||
does not permit allocation to
states or if the | ||
accounting procedures do not reflect states of
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utilization, the patent is utilized in this State if | ||
the taxpayer has its
commercial domicile in this State.
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(B) A copyright is utilized in a state to the | ||
extent that printing or
other publication originates | ||
in the state. If the basis of receipts from
copyright | ||
royalties does not permit allocation to states or if | ||
the
accounting procedures do not reflect states of | ||
utilization, the copyright
is utilized in this State if |
the taxpayer has its commercial domicile in
this State.
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(e) Illinois lottery prizes. Prizes awarded under the | ||
Illinois Lottery Law "Illinois Lottery
Law", approved December | ||
14, 1973, are allocable to this State. Payments received in | ||
taxable years ending on or after December 31, 2013, from the | ||
assignment of a prize under Section 13.1 of the Illinois | ||
Lottery Law are allocable to this State.
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(e-5) Unemployment benefits. Unemployment benefits paid by | ||
the Illinois Department of Employment Security are allocable to | ||
this State. | ||
(f) Taxability in other state. For purposes of allocation | ||
of income
pursuant to this Section, a taxpayer is taxable in | ||
another state if:
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(1) In that state he is subject to a net income tax, a | ||
franchise tax
measured by net income, a franchise tax for | ||
the privilege of doing
business, or a corporate stock tax; | ||
or
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(2) That state has jurisdiction to subject the taxpayer | ||
to a net income
tax regardless of whether, in fact, the | ||
state does or does not.
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(g) Cross references. | ||
(1) For allocation of interest and dividends by
persons | ||
other than residents, see Section 301(c)(2).
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(2) For allocation of nonbusiness income by residents, | ||
see Section
301(a).
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(Source: P.A. 97-709, eff. 7-1-12.)
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(35 ILCS 5/304) (from Ch. 120, par. 3-304)
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Sec. 304. Business income of persons other than residents.
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(a) In general. The business income of a person other than | ||
a
resident shall be allocated to this State if such person's | ||
business
income is derived solely from this State. If a person | ||
other than a
resident derives business income from this State | ||
and one or more other
states, then, for tax years ending on or | ||
before December 30, 1998, and
except as otherwise provided by | ||
this Section, such
person's business income shall be | ||
apportioned to this State by
multiplying the income by a | ||
fraction, the numerator of which is the sum
of the property | ||
factor (if any), the payroll factor (if any) and 200% of the
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sales factor (if any), and the denominator of which is 4 | ||
reduced by the
number of factors other than the sales factor | ||
which have a denominator
of zero and by an additional 2 if the | ||
sales factor has a denominator of zero.
For tax years ending on | ||
or after December 31, 1998, and except as otherwise
provided by | ||
this Section, persons other than
residents who derive business | ||
income from this State and one or more other
states shall | ||
compute their apportionment factor by weighting their | ||
property,
payroll, and sales factors as provided in
subsection | ||
(h) of this Section.
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(1) Property factor.
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(A) The property factor is a fraction, the numerator of | ||
which is the
average value of the person's real and |
tangible personal property owned
or rented and used in the | ||
trade or business in this State during the
taxable year and | ||
the denominator of which is the average value of all
the | ||
person's real and tangible personal property owned or | ||
rented and
used in the trade or business during the taxable | ||
year.
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(B) Property owned by the person is valued at its | ||
original cost.
Property rented by the person is valued at 8 | ||
times the net annual rental
rate. Net annual rental rate is | ||
the annual rental rate paid by the
person less any annual | ||
rental rate received by the person from
sub-rentals.
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(C) The average value of property shall be determined | ||
by averaging
the values at the beginning and ending of the | ||
taxable year but the
Director may require the averaging of | ||
monthly values during the taxable
year if reasonably | ||
required to reflect properly the average value of the
| ||
person's property.
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(2) Payroll factor.
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(A) The payroll factor is a fraction, the numerator of | ||
which is the
total amount paid in this State during the | ||
taxable year by the person
for compensation, and the | ||
denominator of which is the total compensation
paid | ||
everywhere during the taxable year.
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(B) Compensation is paid in this State if:
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(i) The individual's service is performed entirely | ||
within this
State;
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(ii) The individual's service is performed both | ||
within and without
this State, but the service | ||
performed without this State is incidental
to the | ||
individual's service performed within this State; or
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(iii) Some of the service is performed within this | ||
State and either
the base of operations, or if there is | ||
no base of operations, the place
from which the service | ||
is directed or controlled is within this State,
or the | ||
base of operations or the place from which the service | ||
is
directed or controlled is not in any state in which | ||
some part of the
service is performed, but the | ||
individual's residence is in this State.
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(iv) Compensation paid to nonresident professional | ||
athletes. | ||
(a) General. The Illinois source income of a | ||
nonresident individual who is a member of a | ||
professional athletic team includes the portion of the | ||
individual's total compensation for services performed | ||
as a member of a professional athletic team during the | ||
taxable year which the number of duty days spent within | ||
this State performing services for the team in any | ||
manner during the taxable year bears to the total | ||
number of duty days spent both within and without this | ||
State during the taxable year. | ||
(b) Travel days. Travel days that do not involve | ||
either a game, practice, team meeting, or other similar |
team event are not considered duty days spent in this | ||
State. However, such travel days are considered in the | ||
total duty days spent both within and without this | ||
State. | ||
(c) Definitions. For purposes of this subpart | ||
(iv): | ||
(1) The term "professional athletic team" | ||
includes, but is not limited to, any professional | ||
baseball, basketball, football, soccer, or hockey | ||
team. | ||
(2) The term "member of a professional | ||
athletic team" includes those employees who are | ||
active players, players on the disabled list, and | ||
any other persons required to travel and who travel | ||
with and perform services on behalf of a | ||
professional athletic team on a regular basis. | ||
This includes, but is not limited to, coaches, | ||
managers, and trainers. | ||
(3) Except as provided in items (C) and (D) of | ||
this subpart (3), the term "duty days" means all | ||
days during the taxable year from the beginning of | ||
the professional athletic team's official | ||
pre-season training period through the last game | ||
in which the team competes or is scheduled to | ||
compete. Duty days shall be counted for the year in | ||
which they occur, including where a team's |
official pre-season training period through the | ||
last game in which the team competes or is | ||
scheduled to compete, occurs during more than one | ||
tax year. | ||
(A) Duty days shall also include days on | ||
which a member of a professional athletic team | ||
performs service for a team on a date that does | ||
not fall within the foregoing period (e.g., | ||
participation in instructional leagues, the | ||
"All Star Game", or promotional "caravans"). | ||
Performing a service for a professional | ||
athletic team includes conducting training and | ||
rehabilitation activities, when such | ||
activities are conducted at team facilities. | ||
(B) Also included in duty days are game | ||
days, practice days, days spent at team | ||
meetings, promotional caravans, preseason | ||
training camps, and days served with the team | ||
through all post-season games in which the team | ||
competes or is scheduled to compete. | ||
(C) Duty days for any person who joins a | ||
team during the period from the beginning of | ||
the professional athletic team's official | ||
pre-season training period through the last | ||
game in which the team competes, or is | ||
scheduled to compete, shall begin on the day |
that person joins the team. Conversely, duty | ||
days for any person who leaves a team during | ||
this period shall end on the day that person | ||
leaves the team. Where a person switches teams | ||
during a taxable year, a separate duty-day | ||
calculation shall be made for the period the | ||
person was with each team. | ||
(D) Days for which a member of a | ||
professional athletic team is not compensated | ||
and is not performing services for the team in | ||
any manner, including days when such member of | ||
a professional athletic team has been | ||
suspended without pay and prohibited from | ||
performing any services for the team, shall not | ||
be treated as duty days. | ||
(E) Days for which a member of a | ||
professional athletic team is on the disabled | ||
list and does not conduct rehabilitation | ||
activities at facilities of the team, and is | ||
not otherwise performing services for the team | ||
in Illinois, shall not be considered duty days | ||
spent in this State. All days on the disabled | ||
list, however, are considered to be included in | ||
total duty days spent both within and without | ||
this State. | ||
(4) The term "total compensation for services |
performed as a member of a professional athletic | ||
team" means the total compensation received during | ||
the taxable year for services performed: | ||
(A) from the beginning of the official | ||
pre-season training period through the last | ||
game in which the team competes or is scheduled | ||
to compete during that taxable year; and | ||
(B) during the taxable year on a date which | ||
does not fall within the foregoing period | ||
(e.g., participation in instructional leagues, | ||
the "All Star Game", or promotional caravans). | ||
This compensation shall include, but is not | ||
limited to, salaries, wages, bonuses as described | ||
in this subpart, and any other type of compensation | ||
paid during the taxable year to a member of a | ||
professional athletic team for services performed | ||
in that year. This compensation does not include | ||
strike benefits, severance pay, termination pay, | ||
contract or option year buy-out payments, | ||
expansion or relocation payments, or any other | ||
payments not related to services performed for the | ||
team. | ||
For purposes of this subparagraph, "bonuses" | ||
included in "total compensation for services | ||
performed as a member of a professional athletic | ||
team" subject to the allocation described in |
Section 302(c)(1) are: bonuses earned as a result | ||
of play (i.e., performance bonuses) during the | ||
season, including bonuses paid for championship, | ||
playoff or "bowl" games played by a team, or for | ||
selection to all-star league or other honorary | ||
positions; and bonuses paid for signing a | ||
contract, unless the payment of the signing bonus | ||
is not conditional upon the signee playing any | ||
games for the team or performing any subsequent | ||
services for the team or even making the team, the | ||
signing bonus is payable separately from the | ||
salary and any other compensation, and the signing | ||
bonus is nonrefundable.
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(3) Sales factor.
| ||
(A) The sales factor is a fraction, the numerator of | ||
which is the
total sales of the person in this State during | ||
the taxable year, and the
denominator of which is the total | ||
sales of the person everywhere during
the taxable year.
| ||
(B) Sales of tangible personal property are in this | ||
State if:
| ||
(i) The property is delivered or shipped to a | ||
purchaser, other than
the United States government, | ||
within this State regardless of the f. o.
b. point or | ||
other conditions of the sale; or
| ||
(ii) The property is shipped from an office, store, | ||
warehouse,
factory or other place of storage in this |
State and either the purchaser
is the United States | ||
government or the person is not taxable in the
state of | ||
the purchaser; provided, however, that premises owned | ||
or leased
by a person who has independently contracted | ||
with the seller for the printing
of newspapers, | ||
periodicals or books shall not be deemed to be an | ||
office,
store, warehouse, factory or other place of | ||
storage for purposes of this
Section.
Sales of tangible | ||
personal property are not in this State if the
seller | ||
and purchaser would be members of the same unitary | ||
business group
but for the fact that either the seller | ||
or purchaser is a person with 80%
or more of total | ||
business activity outside of the United States and the
| ||
property is purchased for resale.
| ||
(B-1) Patents, copyrights, trademarks, and similar | ||
items of intangible
personal property.
| ||
(i) Gross receipts from the licensing, sale, or | ||
other disposition of a
patent, copyright, trademark, | ||
or similar item of intangible personal property, other | ||
than gross receipts governed by paragraph (B-7) of this | ||
item (3),
are in this State to the extent the item is | ||
utilized in this State during the
year the gross | ||
receipts are included in gross income.
| ||
(ii) Place of utilization.
| ||
(I) A patent is utilized in a state to the | ||
extent that it is employed
in production, |
fabrication, manufacturing, or other processing in | ||
the state or
to the extent that a patented product | ||
is produced in the state. If a patent is
utilized | ||
in
more than one state, the extent to which it is | ||
utilized in any one state shall
be a fraction equal | ||
to the gross receipts of the licensee or purchaser | ||
from
sales or leases of items produced, | ||
fabricated, manufactured, or processed
within that | ||
state using the patent and of patented items | ||
produced within that
state, divided by the total of | ||
such gross receipts for all states in which the
| ||
patent is utilized.
| ||
(II) A copyright is utilized in a state to the | ||
extent that printing or
other publication | ||
originates in the state. If a copyright is utilized | ||
in more
than one state, the extent to which it is | ||
utilized in any one state shall be a
fraction equal | ||
to the gross receipts from sales or licenses of | ||
materials
printed or published in that state | ||
divided by the total of such gross receipts
for all | ||
states in which the copyright is utilized.
| ||
(III) Trademarks and other items of intangible | ||
personal property
governed by this paragraph (B-1) | ||
are utilized in the state in which the
commercial | ||
domicile of the licensee or purchaser is located.
| ||
(iii) If the state of utilization of an item of |
property governed by
this paragraph (B-1) cannot be | ||
determined from the taxpayer's books and
records or | ||
from the books and records of any person related to the | ||
taxpayer
within the meaning of Section 267(b) of the | ||
Internal Revenue Code, 26 U.S.C.
267, the gross
| ||
receipts attributable to that item shall be excluded | ||
from both the numerator
and the denominator of the | ||
sales factor.
| ||
(B-2) Gross receipts from the license, sale, or other | ||
disposition of
patents, copyrights, trademarks, and | ||
similar items of intangible personal
property, other than | ||
gross receipts governed by paragraph (B-7) of this item | ||
(3), may be included in the numerator or denominator of the | ||
sales factor
only if gross receipts from licenses, sales, | ||
or other disposition of such items
comprise more than 50% | ||
of the taxpayer's total gross receipts included in gross
| ||
income during the tax year and during each of the 2 | ||
immediately preceding tax
years; provided that, when a | ||
taxpayer is a member of a unitary business group,
such | ||
determination shall be made on the basis of the gross | ||
receipts of the
entire unitary business group.
| ||
(B-5) For taxable years ending on or after December 31, | ||
2008, except as provided in subsections (ii) through (vii), | ||
receipts from the sale of telecommunications service or | ||
mobile telecommunications service are in this State if the | ||
customer's service address is in this State. |
(i) For purposes of this subparagraph (B-5), the | ||
following terms have the following meanings: | ||
"Ancillary services" means services that are | ||
associated with or incidental to the provision of | ||
"telecommunications services", including but not | ||
limited to "detailed telecommunications billing", | ||
"directory assistance", "vertical service", and "voice | ||
mail services". | ||
"Air-to-Ground Radiotelephone service" means a | ||
radio service, as that term is defined in 47 CFR 22.99, | ||
in which common carriers are authorized to offer and | ||
provide radio telecommunications service for hire to | ||
subscribers in aircraft. | ||
"Call-by-call Basis" means any method of charging | ||
for telecommunications services where the price is | ||
measured by individual calls. | ||
"Communications Channel" means a physical or | ||
virtual path of communications over which signals are | ||
transmitted between or among customer channel | ||
termination points. | ||
"Conference bridging service" means an "ancillary | ||
service" that links two or more participants of an | ||
audio or video conference call and may include the | ||
provision of a telephone number. "Conference bridging | ||
service" does not include the "telecommunications | ||
services" used to reach the conference bridge. |
"Customer Channel Termination Point" means the | ||
location where the customer either inputs or receives | ||
the communications. | ||
"Detailed telecommunications billing service" | ||
means an "ancillary service" of separately stating | ||
information pertaining to individual calls on a | ||
customer's billing statement. | ||
"Directory assistance" means an "ancillary | ||
service" of providing telephone number information, | ||
and/or address information. | ||
"Home service provider" means the facilities based | ||
carrier or reseller with which the customer contracts | ||
for the provision of mobile telecommunications | ||
services. | ||
"Mobile telecommunications service" means | ||
commercial mobile radio service, as defined in Section | ||
20.3 of Title 47 of the Code of Federal Regulations as | ||
in effect on June 1, 1999. | ||
"Place of primary use" means the street address | ||
representative of where the customer's use of the | ||
telecommunications service primarily occurs, which | ||
must be the residential street address or the primary | ||
business street address of the customer. In the case of | ||
mobile telecommunications services, "place of primary | ||
use" must be within the licensed service area of the | ||
home service provider. |
"Post-paid telecommunication service" means the | ||
telecommunications service obtained by making a | ||
payment on a call-by-call basis either through the use | ||
of a credit card or payment mechanism such as a bank | ||
card, travel card, credit card, or debit card, or by | ||
charge made to a telephone number which is not | ||
associated with the origination or termination of the | ||
telecommunications service. A post-paid calling | ||
service includes telecommunications service, except a | ||
prepaid wireless calling service, that would be a | ||
prepaid calling service except it is not exclusively a | ||
telecommunication service. | ||
"Prepaid telecommunication service" means the | ||
right to access exclusively telecommunications | ||
services, which must be paid for in advance and which | ||
enables the origination of calls using an access number | ||
or authorization code, whether manually or | ||
electronically dialed, and that is sold in | ||
predetermined units or dollars of which the number | ||
declines with use in a known amount. | ||
"Prepaid Mobile telecommunication service" means a | ||
telecommunications service that provides the right to | ||
utilize mobile wireless service as well as other | ||
non-telecommunication services, including but not | ||
limited to ancillary services, which must be paid for | ||
in advance that is sold in predetermined units or |
dollars of which the number declines with use in a | ||
known amount. | ||
"Private communication service" means a | ||
telecommunication service that entitles the customer | ||
to exclusive or priority use of a communications | ||
channel or group of channels between or among | ||
termination points, regardless of the manner in which | ||
such channel or channels are connected, and includes | ||
switching capacity, extension lines, stations, and any | ||
other associated services that are provided in | ||
connection with the use of such channel or channels. | ||
"Service address" means: | ||
(a) The location of the telecommunications | ||
equipment to which a customer's call is charged and | ||
from which the call originates or terminates, | ||
regardless of where the call is billed or paid; | ||
(b) If the location in line (a) is not known, | ||
service address means the origination point of the | ||
signal of the telecommunications services first | ||
identified by either the seller's | ||
telecommunications system or in information | ||
received by the seller from its service provider | ||
where the system used to transport such signals is | ||
not that of the seller; and | ||
(c) If the locations in line (a) and line (b) | ||
are not known, the service address means the |
location of the customer's place of primary use. | ||
"Telecommunications service" means the electronic | ||
transmission, conveyance, or routing of voice, data, | ||
audio, video, or any other information or signals to a | ||
point, or between or among points. The term | ||
"telecommunications service" includes such | ||
transmission, conveyance, or routing in which computer | ||
processing applications are used to act on the form, | ||
code or protocol of the content for purposes of | ||
transmission, conveyance or routing without regard to | ||
whether such service is referred to as voice over | ||
Internet protocol services or is classified by the | ||
Federal Communications Commission as enhanced or value | ||
added. "Telecommunications service" does not include: | ||
(a) Data processing and information services | ||
that allow data to be generated, acquired, stored, | ||
processed, or retrieved and delivered by an | ||
electronic transmission to a purchaser when such | ||
purchaser's primary purpose for the underlying | ||
transaction is the processed data or information; | ||
(b) Installation or maintenance of wiring or | ||
equipment on a customer's premises; | ||
(c) Tangible personal property; | ||
(d) Advertising, including but not limited to | ||
directory advertising. | ||
(e) Billing and collection services provided |
to third parties; | ||
(f) Internet access service; | ||
(g) Radio and television audio and video | ||
programming services, regardless of the medium, | ||
including the furnishing of transmission, | ||
conveyance and routing of such services by the | ||
programming service provider. Radio and television | ||
audio and video programming services shall include | ||
but not be limited to cable service as defined in | ||
47 USC 522(6) and audio and video programming | ||
services delivered by commercial mobile radio | ||
service providers, as defined in 47 CFR 20.3; | ||
(h) "Ancillary services"; or | ||
(i) Digital products "delivered | ||
electronically", including but not limited to | ||
software, music, video, reading materials or ring | ||
tones. | ||
"Vertical service" means an "ancillary service" | ||
that is offered in connection with one or more | ||
"telecommunications services", which offers advanced | ||
calling features that allow customers to identify | ||
callers and to manage multiple calls and call | ||
connections, including "conference bridging services". | ||
"Voice mail service" means an "ancillary service" | ||
that enables the customer to store, send or receive | ||
recorded messages. "Voice mail service" does not |
include any "vertical services" that the customer may | ||
be required to have in order to utilize the "voice mail | ||
service". | ||
(ii) Receipts from the sale of telecommunications | ||
service sold on an individual call-by-call basis are in | ||
this State if either of the following applies: | ||
(a) The call both originates and terminates in | ||
this State. | ||
(b) The call either originates or terminates | ||
in this State and the service address is located in | ||
this State. | ||
(iii) Receipts from the sale of postpaid | ||
telecommunications service at retail are in this State | ||
if the origination point of the telecommunication | ||
signal, as first identified by the service provider's | ||
telecommunication system or as identified by | ||
information received by the seller from its service | ||
provider if the system used to transport | ||
telecommunication signals is not the seller's, is | ||
located in this State. | ||
(iv) Receipts from the sale of prepaid | ||
telecommunications service or prepaid mobile | ||
telecommunications service at retail are in this State | ||
if the purchaser obtains the prepaid card or similar | ||
means of conveyance at a location in this State. | ||
Receipts from recharging a prepaid telecommunications |
service or mobile telecommunications service is in | ||
this State if the purchaser's billing information | ||
indicates a location in this State. | ||
(v) Receipts from the sale of private | ||
communication services are in this State as follows: | ||
(a) 100% of receipts from charges imposed at | ||
each channel termination point in this State. | ||
(b) 100% of receipts from charges for the total | ||
channel mileage between each channel termination | ||
point in this State. | ||
(c) 50% of the total receipts from charges for | ||
service segments when those segments are between 2 | ||
customer channel termination points, 1 of which is | ||
located in this State and the other is located | ||
outside of this State, which segments are | ||
separately charged. | ||
(d) The receipts from charges for service | ||
segments with a channel termination point located | ||
in this State and in two or more other states, and | ||
which segments are not separately billed, are in | ||
this State based on a percentage determined by | ||
dividing the number of customer channel | ||
termination points in this State by the total | ||
number of customer channel termination points. | ||
(vi) Receipts from charges for ancillary services | ||
for telecommunications service sold to customers at |
retail are in this State if the customer's primary | ||
place of use of telecommunications services associated | ||
with those ancillary services is in this State. If the | ||
seller of those ancillary services cannot determine | ||
where the associated telecommunications are located, | ||
then the ancillary services shall be based on the | ||
location of the purchaser. | ||
(vii) Receipts to access a carrier's network or | ||
from the sale of telecommunication services or | ||
ancillary services for resale are in this State as | ||
follows: | ||
(a) 100% of the receipts from access fees | ||
attributable to intrastate telecommunications | ||
service that both originates and terminates in | ||
this State. | ||
(b) 50% of the receipts from access fees | ||
attributable to interstate telecommunications | ||
service if the interstate call either originates | ||
or terminates in this State. | ||
(c) 100% of the receipts from interstate end | ||
user access line charges, if the customer's | ||
service address is in this State. As used in this | ||
subdivision, "interstate end user access line | ||
charges" includes, but is not limited to, the | ||
surcharge approved by the federal communications | ||
commission and levied pursuant to 47 CFR 69. |
(d) Gross receipts from sales of | ||
telecommunication services or from ancillary | ||
services for telecommunications services sold to | ||
other telecommunication service providers for | ||
resale shall be sourced to this State using the | ||
apportionment concepts used for non-resale | ||
receipts of telecommunications services if the | ||
information is readily available to make that | ||
determination. If the information is not readily | ||
available, then the taxpayer may use any other | ||
reasonable and consistent method. | ||
(B-7) For taxable years ending on or after December 31, | ||
2008, receipts from the sale of broadcasting services are | ||
in this State if the broadcasting services are received in | ||
this State. For purposes of this paragraph (B-7), the | ||
following terms have the following meanings: | ||
"Advertising revenue" means consideration received | ||
by the taxpayer in exchange for broadcasting services | ||
or allowing the broadcasting of commercials or | ||
announcements in connection with the broadcasting of | ||
film or radio programming, from sponsorships of the | ||
programming, or from product placements in the | ||
programming. | ||
"Audience factor" means the ratio that the | ||
audience or subscribers located in this State of a | ||
station, a network, or a cable system bears to the |
total audience or total subscribers for that station, | ||
network, or cable system. The audience factor for film | ||
or radio programming shall be determined by reference | ||
to the books and records of the taxpayer or by | ||
reference to published rating statistics provided the | ||
method used by the taxpayer is consistently used from | ||
year to year for this purpose and fairly represents the | ||
taxpayer's activity in this State. | ||
"Broadcast" or "broadcasting" or "broadcasting | ||
services" means the transmission or provision of film | ||
or radio programming, whether through the public | ||
airwaves, by cable, by direct or indirect satellite | ||
transmission, or by any other means of communication, | ||
either through a station, a network, or a cable system. | ||
"Film" or "film programming" means the broadcast | ||
on television of any and all performances, events, or | ||
productions, including but not limited to news, | ||
sporting events, plays, stories, or other literary, | ||
commercial, educational, or artistic works, either | ||
live or through the use of video tape, disc, or any | ||
other type of format or medium. Each episode of a | ||
series of films produced for television shall | ||
constitute separate "film" notwithstanding that the | ||
series relates to the same principal subject and is | ||
produced during one or more tax periods. | ||
"Radio" or "radio programming" means the broadcast |
on radio of any and all performances, events, or | ||
productions, including but not limited to news, | ||
sporting events, plays, stories, or other literary, | ||
commercial, educational, or artistic works, either | ||
live or through the use of an audio tape, disc, or any | ||
other format or medium. Each episode in a series of | ||
radio programming produced for radio broadcast shall | ||
constitute a separate "radio programming" | ||
notwithstanding that the series relates to the same | ||
principal subject and is produced during one or more | ||
tax periods. | ||
(i) In the case of advertising revenue from | ||
broadcasting, the customer is the advertiser and | ||
the service is received in this State if the | ||
commercial domicile of the advertiser is in this | ||
State. | ||
(ii) In the case where film or radio | ||
programming is broadcast by a station, a network, | ||
or a cable system for a fee or other remuneration | ||
received from the recipient of the broadcast, the | ||
portion of the service that is received in this | ||
State is measured by the portion of the recipients | ||
of the broadcast located in this State. | ||
Accordingly, the fee or other remuneration for | ||
such service that is included in the Illinois | ||
numerator of the sales factor is the total of those |
fees or other remuneration received from | ||
recipients in Illinois. For purposes of this | ||
paragraph, a taxpayer may determine the location | ||
of the recipients of its broadcast using the | ||
address of the recipient shown in its contracts | ||
with the recipient or using the billing address of | ||
the recipient in the taxpayer's records. | ||
(iii) In the case where film or radio | ||
programming is broadcast by a station, a network, | ||
or a cable system for a fee or other remuneration | ||
from the person providing the programming, the | ||
portion of the broadcast service that is received | ||
by such station, network, or cable system in this | ||
State is measured by the portion of recipients of | ||
the broadcast located in this State. Accordingly, | ||
the amount of revenue related to such an | ||
arrangement that is included in the Illinois | ||
numerator of the sales factor is the total fee or | ||
other total remuneration from the person providing | ||
the programming related to that broadcast | ||
multiplied by the Illinois audience factor for | ||
that broadcast. | ||
(iv) In the case where film or radio | ||
programming is provided by a taxpayer that is a | ||
network or station to a customer for broadcast in | ||
exchange for a fee or other remuneration from that |
customer the broadcasting service is received at | ||
the location of the office of the customer from | ||
which the services were ordered in the regular | ||
course of the customer's trade or business. | ||
Accordingly, in such a case the revenue derived by | ||
the taxpayer that is included in the taxpayer's | ||
Illinois numerator of the sales factor is the | ||
revenue from such customers who receive the | ||
broadcasting service in Illinois. | ||
(v) In the case where film or radio programming | ||
is provided by a taxpayer that is not a network or | ||
station to another person for broadcasting in | ||
exchange for a fee or other remuneration from that | ||
person, the broadcasting service is received at | ||
the location of the office of the customer from | ||
which the services were ordered in the regular | ||
course of the customer's trade or business. | ||
Accordingly, in such a case the revenue derived by | ||
the taxpayer that is included in the taxpayer's | ||
Illinois numerator of the sales factor is the | ||
revenue from such customers who receive the | ||
broadcasting service in Illinois. | ||
(B-8) Gross receipts from winnings under the Illinois | ||
Lottery Law from the assignment of a prize under Section | ||
13-1 of the Illinois Lottery Law are received in this | ||
State. This paragraph (B-8) applies only to taxable years |
ending on or after December 31, 2013.
| ||
(C) For taxable years ending before December 31, 2008, | ||
sales, other than sales governed by paragraphs (B), (B-1), | ||
and (B-2), and (B-8) are in
this State if:
| ||
(i) The income-producing activity is performed in | ||
this State; or
| ||
(ii) The income-producing activity is performed | ||
both within and
without this State and a greater | ||
proportion of the income-producing
activity is | ||
performed within this State than without this State, | ||
based
on performance costs.
| ||
(C-5) For taxable years ending on or after December 31, | ||
2008, sales, other than sales governed by paragraphs (B), | ||
(B-1), (B-2), (B-5), and (B-7), are in this State if any of | ||
the following criteria are met: | ||
(i) Sales from the sale or lease of real property | ||
are in this State if the property is located in this | ||
State. | ||
(ii) Sales from the lease or rental of tangible | ||
personal property are in this State if the property is | ||
located in this State during the rental period. Sales | ||
from the lease or rental of tangible personal property | ||
that is characteristically moving property, including, | ||
but not limited to, motor vehicles, rolling stock, | ||
aircraft, vessels, or mobile equipment are in this | ||
State to the extent that the property is used in this |
State. | ||
(iii) In the case of interest, net gains (but not | ||
less than zero) and other items of income from | ||
intangible personal property, the sale is in this State | ||
if: | ||
(a) in the case of a taxpayer who is a dealer | ||
in the item of intangible personal property within | ||
the meaning of Section 475 of the Internal Revenue | ||
Code, the income or gain is received from a | ||
customer in this State. For purposes of this | ||
subparagraph, a customer is in this State if the | ||
customer is an individual, trust or estate who is a | ||
resident of this State and, for all other | ||
customers, if the customer's commercial domicile | ||
is in this State. Unless the dealer has actual | ||
knowledge of the residence or commercial domicile | ||
of a customer during a taxable year, the customer | ||
shall be deemed to be a customer in this State if | ||
the billing address of the customer, as shown in | ||
the records of the dealer, is in this State; or | ||
(b) in all other cases, if the | ||
income-producing activity of the taxpayer is | ||
performed in this State or, if the | ||
income-producing activity of the taxpayer is | ||
performed both within and without this State, if a | ||
greater proportion of the income-producing |
activity of the taxpayer is performed within this | ||
State than in any other state, based on performance | ||
costs. | ||
(iv) Sales of services are in this State if the | ||
services are received in this State. For the purposes | ||
of this section, gross receipts from the performance of | ||
services provided to a corporation, partnership, or | ||
trust may only be attributed to a state where that | ||
corporation, partnership, or trust has a fixed place of | ||
business. If the state where the services are received | ||
is not readily determinable or is a state where the | ||
corporation, partnership, or trust receiving the | ||
service does not have a fixed place of business, the | ||
services shall be deemed to be received at the location | ||
of the office of the customer from which the services | ||
were ordered in the regular course of the customer's | ||
trade or business. If the ordering office cannot be | ||
determined, the services shall be deemed to be received | ||
at the office of the customer to which the services are | ||
billed. If the taxpayer is not taxable in the state in | ||
which the services are received, the sale must be | ||
excluded from both the numerator and the denominator of | ||
the sales factor. The Department shall adopt rules | ||
prescribing where specific types of service are | ||
received, including, but not limited to, publishing, | ||
and utility service.
|
(D) For taxable years ending on or after December 31, | ||
1995, the following
items of income shall not be included | ||
in the numerator or denominator of the
sales factor: | ||
dividends; amounts included under Section 78 of the | ||
Internal
Revenue Code; and Subpart F income as defined in | ||
Section 952 of the Internal
Revenue Code.
No inference | ||
shall be drawn from the enactment of this paragraph (D) in
| ||
construing this Section for taxable years ending before | ||
December 31, 1995.
| ||
(E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||
ending on or
after December 31, 1999, provided that a | ||
taxpayer may elect to apply the
provisions of these | ||
paragraphs to prior tax years. Such election shall be made
| ||
in the form and manner prescribed by the Department, shall | ||
be irrevocable, and
shall apply to all tax years; provided | ||
that, if a taxpayer's Illinois income
tax liability for any | ||
tax year, as assessed under Section 903 prior to January
1, | ||
1999, was computed in a manner contrary to the provisions | ||
of paragraphs
(B-1) or (B-2), no refund shall be payable to | ||
the taxpayer for that tax year to
the extent such refund is | ||
the result of applying the provisions of paragraph
(B-1) or | ||
(B-2) retroactively. In the case of a unitary business | ||
group, such
election shall apply to all members of such | ||
group for every tax year such group
is in existence, but | ||
shall not apply to any taxpayer for any period during
which | ||
that taxpayer is not a member of such group.
|
(b) Insurance companies.
| ||
(1) In general. Except as otherwise
provided by | ||
paragraph (2), business income of an insurance company for | ||
a
taxable year shall be apportioned to this State by | ||
multiplying such
income by a fraction, the numerator of | ||
which is the direct premiums
written for insurance upon | ||
property or risk in this State, and the
denominator of | ||
which is the direct premiums written for insurance upon
| ||
property or risk everywhere. For purposes of this | ||
subsection, the term
"direct premiums written" means the | ||
total amount of direct premiums
written, assessments and | ||
annuity considerations as reported for the
taxable year on | ||
the annual statement filed by the company with the
Illinois | ||
Director of Insurance in the form approved by the National
| ||
Convention of Insurance Commissioners
or such other form as | ||
may be
prescribed in lieu thereof.
| ||
(2) Reinsurance. If the principal source of premiums | ||
written by an
insurance company consists of premiums for | ||
reinsurance accepted by it,
the business income of such | ||
company shall be apportioned to this State
by multiplying | ||
such income by a fraction, the numerator of which is the
| ||
sum of (i) direct premiums written for insurance upon | ||
property or risk
in this State, plus (ii) premiums written | ||
for reinsurance accepted in
respect of property or risk in | ||
this State, and the denominator of which
is the sum of | ||
(iii) direct premiums written for insurance upon property
|
or risk everywhere, plus (iv) premiums written for | ||
reinsurance accepted
in respect of property or risk | ||
everywhere. For purposes of this
paragraph, premiums | ||
written for reinsurance accepted in respect of
property or | ||
risk in this State, whether or not otherwise determinable,
| ||
may, at the election of the company, be determined on the | ||
basis of the
proportion which premiums written for | ||
reinsurance accepted from
companies commercially domiciled | ||
in Illinois bears to premiums written
for reinsurance | ||
accepted from all sources, or, alternatively, in the
| ||
proportion which the sum of the direct premiums written for | ||
insurance
upon property or risk in this State by each | ||
ceding company from which
reinsurance is accepted bears to | ||
the sum of the total direct premiums
written by each such | ||
ceding company for the taxable year. The election made by a | ||
company under this paragraph for its first taxable year | ||
ending on or after December 31, 2011, shall be binding for | ||
that company for that taxable year and for all subsequent | ||
taxable years, and may be altered only with the written | ||
permission of the Department, which shall not be | ||
unreasonably withheld.
| ||
(c) Financial organizations.
| ||
(1) In general. For taxable years ending before | ||
December 31, 2008, business income of a financial
| ||
organization shall be apportioned to this State by | ||
multiplying such
income by a fraction, the numerator of |
which is its business income from
sources within this | ||
State, and the denominator of which is its business
income | ||
from all sources. For the purposes of this subsection, the
| ||
business income of a financial organization from sources | ||
within this
State is the sum of the amounts referred to in | ||
subparagraphs (A) through
(E) following, but excluding the | ||
adjusted income of an international banking
facility as | ||
determined in paragraph (2):
| ||
(A) Fees, commissions or other compensation for | ||
financial services
rendered within this State;
| ||
(B) Gross profits from trading in stocks, bonds or | ||
other securities
managed within this State;
| ||
(C) Dividends, and interest from Illinois | ||
customers, which are received
within this State;
| ||
(D) Interest charged to customers at places of | ||
business maintained
within this State for carrying | ||
debit balances of margin accounts,
without deduction | ||
of any costs incurred in carrying such accounts; and
| ||
(E) Any other gross income resulting from the | ||
operation as a
financial organization within this | ||
State. In computing the amounts
referred to in | ||
paragraphs (A) through (E) of this subsection, any | ||
amount
received by a member of an affiliated group | ||
(determined under Section
1504(a) of the Internal | ||
Revenue Code but without reference to whether
any such | ||
corporation is an "includible corporation" under |
Section
1504(b) of the Internal Revenue Code) from | ||
another member of such group
shall be included only to | ||
the extent such amount exceeds expenses of the
| ||
recipient directly related thereto.
| ||
(2) International Banking Facility. For taxable years | ||
ending before December 31, 2008:
| ||
(A) Adjusted Income. The adjusted income of an | ||
international banking
facility is its income reduced | ||
by the amount of the floor amount.
| ||
(B) Floor Amount. The floor amount shall be the | ||
amount, if any,
determined
by multiplying the income of | ||
the international banking facility by a fraction,
not | ||
greater than one, which is determined as follows:
| ||
(i) The numerator shall be:
| ||
The average aggregate, determined on a | ||
quarterly basis, of the
financial
organization's | ||
loans to banks in foreign countries, to foreign | ||
domiciled
borrowers (except where secured | ||
primarily by real estate) and to foreign
| ||
governments and other foreign official | ||
institutions, as reported for its
branches, | ||
agencies and offices within the state on its | ||
"Consolidated Report
of Condition", Schedule A, | ||
Lines 2.c., 5.b., and 7.a., which was filed with
| ||
the Federal Deposit Insurance Corporation and | ||
other regulatory authorities,
for the year 1980, |
minus
| ||
The average aggregate, determined on a | ||
quarterly basis, of such loans
(other
than loans of | ||
an international banking facility), as reported by | ||
the financial
institution for its branches, | ||
agencies and offices within the state, on
the | ||
corresponding Schedule and lines of the | ||
Consolidated Report of Condition
for the current | ||
taxable year, provided, however, that in no case | ||
shall the
amount determined in this clause (the | ||
subtrahend) exceed the amount determined
in the | ||
preceding clause (the minuend); and
| ||
(ii) the denominator shall be the average | ||
aggregate, determined on a
quarterly basis, of the | ||
international banking facility's loans to banks in
| ||
foreign countries, to foreign domiciled borrowers | ||
(except where secured
primarily by real estate) | ||
and to foreign governments and other foreign
| ||
official institutions, which were recorded in its | ||
financial accounts for
the current taxable year.
| ||
(C) Change to Consolidated Report of Condition and | ||
in Qualification.
In the event the Consolidated Report | ||
of Condition which is filed with the
Federal Deposit | ||
Insurance Corporation and other regulatory authorities | ||
is
altered so that the information required for | ||
determining the floor amount
is not found on Schedule |
A, lines 2.c., 5.b. and 7.a., the financial
institution | ||
shall notify the Department and the Department may, by
| ||
regulations or otherwise, prescribe or authorize the | ||
use of an alternative
source for such information. The | ||
financial institution shall also notify
the Department | ||
should its international banking facility fail to | ||
qualify as
such, in whole or in part, or should there | ||
be any amendment or change to
the Consolidated Report | ||
of Condition, as originally filed, to the extent
such | ||
amendment or change alters the information used in | ||
determining the floor
amount.
| ||
(3) For taxable years ending on or after December 31, | ||
2008, the business income of a financial organization shall | ||
be apportioned to this State by multiplying such income by | ||
a fraction, the numerator of which is its gross receipts | ||
from sources in this State or otherwise attributable to | ||
this State's marketplace and the denominator of which is | ||
its gross receipts everywhere during the taxable year. | ||
"Gross receipts" for purposes of this subparagraph (3) | ||
means gross income, including net taxable gain on | ||
disposition of assets, including securities and money | ||
market instruments, when derived from transactions and | ||
activities in the regular course of the financial | ||
organization's trade or business. The following examples | ||
are illustrative:
| ||
(i) Receipts from the lease or rental of real or |
tangible personal property are in this State if the | ||
property is located in this State during the rental | ||
period. Receipts from the lease or rental of tangible | ||
personal property that is characteristically moving | ||
property, including, but not limited to, motor | ||
vehicles, rolling stock, aircraft, vessels, or mobile | ||
equipment are from sources in this State to the extent | ||
that the property is used in this State. | ||
(ii) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from assets in the | ||
nature of loans that are secured primarily by real | ||
estate or tangible personal property are from sources | ||
in this State if the security is located in this State. | ||
(iii) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from consumer loans | ||
that are not secured by real or tangible personal | ||
property are from sources in this State if the debtor | ||
is a resident of this State. | ||
(iv) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from commercial loans | ||
and installment obligations that are not secured by | ||
real or tangible personal property are from sources in | ||
this State if the proceeds of the loan are to be | ||
applied in this State. If it cannot be determined where | ||
the funds are to be applied, the income and receipts | ||
are from sources in this State if the office of the |
borrower from which the loan was negotiated in the | ||
regular course of business is located in this State. If | ||
the location of this office cannot be determined, the | ||
income and receipts shall be excluded from the | ||
numerator and denominator of the sales factor.
| ||
(v) Interest income, fees, gains on disposition, | ||
service charges, merchant discount income, and other | ||
receipts from credit card receivables are from sources | ||
in this State if the card charges are regularly billed | ||
to a customer in this State. | ||
(vi) Receipts from the performance of services, | ||
including, but not limited to, fiduciary, advisory, | ||
and brokerage services, are in this State if the | ||
services are received in this State within the meaning | ||
of subparagraph (a)(3)(C-5)(iv) of this Section. | ||
(vii) Receipts from the issuance of travelers | ||
checks and money orders are from sources in this State | ||
if the checks and money orders are issued from a | ||
location within this State. | ||
(viii) Receipts from investment assets and | ||
activities and trading assets and activities are | ||
included in the receipts factor as follows: | ||
(1) Interest, dividends, net gains (but not | ||
less than zero) and other income from investment | ||
assets and activities from trading assets and | ||
activities shall be included in the receipts |
factor. Investment assets and activities and | ||
trading assets and activities include but are not | ||
limited to: investment securities; trading account | ||
assets; federal funds; securities purchased and | ||
sold under agreements to resell or repurchase; | ||
options; futures contracts; forward contracts; | ||
notional principal contracts such as swaps; | ||
equities; and foreign currency transactions. With | ||
respect to the investment and trading assets and | ||
activities described in subparagraphs (A) and (B) | ||
of this paragraph, the receipts factor shall | ||
include the amounts described in such | ||
subparagraphs. | ||
(A) The receipts factor shall include the | ||
amount by which interest from federal funds | ||
sold and securities purchased under resale | ||
agreements exceeds interest expense on federal | ||
funds purchased and securities sold under | ||
repurchase agreements. | ||
(B) The receipts factor shall include the | ||
amount by which interest, dividends, gains and | ||
other income from trading assets and | ||
activities, including but not limited to | ||
assets and activities in the matched book, in | ||
the arbitrage book, and foreign currency | ||
transactions, exceed amounts paid in lieu of |
interest, amounts paid in lieu of dividends, | ||
and losses from such assets and activities. | ||
(2) The numerator of the receipts factor | ||
includes interest, dividends, net gains (but not | ||
less than zero), and other income from investment | ||
assets and activities and from trading assets and | ||
activities described in paragraph (1) of this | ||
subsection that are attributable to this State. | ||
(A) The amount of interest, dividends, net | ||
gains (but not less than zero), and other | ||
income from investment assets and activities | ||
in the investment account to be attributed to | ||
this State and included in the numerator is | ||
determined by multiplying all such income from | ||
such assets and activities by a fraction, the | ||
numerator of which is the gross income from | ||
such assets and activities which are properly | ||
assigned to a fixed place of business of the | ||
taxpayer within this State and the denominator | ||
of which is the gross income from all such | ||
assets and activities. | ||
(B) The amount of interest from federal | ||
funds sold and purchased and from securities | ||
purchased under resale agreements and | ||
securities sold under repurchase agreements | ||
attributable to this State and included in the |
numerator is determined by multiplying the | ||
amount described in subparagraph (A) of | ||
paragraph (1) of this subsection from such | ||
funds and such securities by a fraction, the | ||
numerator of which is the gross income from | ||
such funds and such securities which are | ||
properly assigned to a fixed place of business | ||
of the taxpayer within this State and the | ||
denominator of which is the gross income from | ||
all such funds and such securities. | ||
(C) The amount of interest, dividends, | ||
gains, and other income from trading assets and | ||
activities, including but not limited to | ||
assets and activities in the matched book, in | ||
the arbitrage book and foreign currency | ||
transactions (but excluding amounts described | ||
in subparagraphs (A) or (B) of this paragraph), | ||
attributable to this State and included in the | ||
numerator is determined by multiplying the | ||
amount described in subparagraph (B) of | ||
paragraph (1) of this subsection by a fraction, | ||
the numerator of which is the gross income from | ||
such trading assets and activities which are | ||
properly assigned to a fixed place of business | ||
of the taxpayer within this State and the | ||
denominator of which is the gross income from |
all such assets and activities. | ||
(D) Properly assigned, for purposes of | ||
this paragraph (2) of this subsection, means | ||
the investment or trading asset or activity is | ||
assigned to the fixed place of business with | ||
which it has a preponderance of substantive | ||
contacts. An investment or trading asset or | ||
activity assigned by the taxpayer to a fixed | ||
place of business without the State shall be | ||
presumed to have been properly assigned if: | ||
(i) the taxpayer has assigned, in the | ||
regular course of its business, such asset | ||
or activity on its records to a fixed place | ||
of business consistent with federal or | ||
state regulatory requirements; | ||
(ii) such assignment on its records is | ||
based upon substantive contacts of the | ||
asset or activity to such fixed place of | ||
business; and | ||
(iii) the taxpayer uses such records | ||
reflecting assignment of such assets or | ||
activities for the filing of all state and | ||
local tax returns for which an assignment | ||
of such assets or activities to a fixed | ||
place of business is required. | ||
(E) The presumption of proper assignment |
of an investment or trading asset or activity | ||
provided in subparagraph (D) of paragraph (2) | ||
of this subsection may be rebutted upon a | ||
showing by the Department, supported by a | ||
preponderance of the evidence, that the | ||
preponderance of substantive contacts | ||
regarding such asset or activity did not occur | ||
at the fixed place of business to which it was | ||
assigned on the taxpayer's records. If the | ||
fixed place of business that has a | ||
preponderance of substantive contacts cannot | ||
be determined for an investment or trading | ||
asset or activity to which the presumption in | ||
subparagraph (D) of paragraph (2) of this | ||
subsection does not apply or with respect to | ||
which that presumption has been rebutted, that | ||
asset or activity is properly assigned to the | ||
state in which the taxpayer's commercial | ||
domicile is located. For purposes of this | ||
subparagraph (E), it shall be presumed, | ||
subject to rebuttal, that taxpayer's | ||
commercial domicile is in the state of the | ||
United States or the District of Columbia to | ||
which the greatest number of employees are | ||
regularly connected with the management of the | ||
investment or trading income or out of which |
they are working, irrespective of where the | ||
services of such employees are performed, as of | ||
the last day of the taxable year.
| ||
(4) (Blank). | ||
(5) (Blank). | ||
(c-1) Federally regulated exchanges. For taxable years | ||
ending on or after December 31, 2012, business income of a | ||
federally regulated exchange shall, at the option of the | ||
federally regulated exchange, be apportioned to this State by | ||
multiplying such income by a fraction, the numerator of which | ||
is its business income from sources within this State, and the | ||
denominator of which is its business income from all sources. | ||
For purposes of this subsection, the business income within | ||
this State of a federally regulated exchange is the sum of the | ||
following: | ||
(1) Receipts attributable to transactions executed on | ||
a physical trading floor if that physical trading floor is | ||
located in this State. | ||
(2) Receipts attributable to all other matching, | ||
execution, or clearing transactions, including without | ||
limitation receipts from the provision of matching, | ||
execution, or clearing services to another entity, | ||
multiplied by (i) for taxable years ending on or after | ||
December 31, 2012 but before December 31, 2013, 63.77%; and | ||
(ii) for taxable years ending on or after December 31, | ||
2013, 27.54%. |
(3) All other receipts not governed by subparagraphs | ||
(1) or (2) of this subsection (c-1), to the extent the | ||
receipts would be characterized as "sales in this State" | ||
under item (3) of subsection (a) of this Section. | ||
"Federally regulated exchange" means (i) a "registered | ||
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||
or (C), (ii) an "exchange" or "clearing agency" within the | ||
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||
entities regulated under any successor regulatory structure to | ||
the foregoing, and (iv) all taxpayers who are members of the | ||
same unitary business group as a federally regulated exchange, | ||
determined without regard to the prohibition in Section | ||
1501(a)(27) of this Act against including in a unitary business | ||
group taxpayers who are ordinarily required to apportion | ||
business income under different subsections of this Section; | ||
provided that this subparagraph (iv) shall apply only if 50% or | ||
more of the business receipts of the unitary business group | ||
determined by application of this subparagraph (iv) for the | ||
taxable year are attributable to the matching, execution, or | ||
clearing of transactions conducted by an entity described in | ||
subparagraph (i), (ii), or (iii) of this paragraph. | ||
In no event shall the Illinois apportionment percentage | ||
computed in accordance with this subsection (c-1) for any | ||
taxpayer for any tax year be less than the Illinois | ||
apportionment percentage computed under this subsection (c-1) | ||
for that taxpayer for the first full tax year ending on or |
after December 31, 2013 for which this subsection (c-1) applied | ||
to the taxpayer. | ||
(d) Transportation services. For taxable years ending | ||
before December 31, 2008, business income derived from | ||
furnishing
transportation services shall be apportioned to | ||
this State in accordance
with paragraphs (1) and (2):
| ||
(1) Such business income (other than that derived from
| ||
transportation by pipeline) shall be apportioned to this | ||
State by
multiplying such income by a fraction, the | ||
numerator of which is the
revenue miles of the person in | ||
this State, and the denominator of which
is the revenue | ||
miles of the person everywhere. For purposes of this
| ||
paragraph, a revenue mile is the transportation of 1 | ||
passenger or 1 net
ton of freight the distance of 1 mile | ||
for a consideration. Where a
person is engaged in the | ||
transportation of both passengers and freight,
the | ||
fraction above referred to shall be determined by means of | ||
an
average of the passenger revenue mile fraction and the | ||
freight revenue
mile fraction, weighted to reflect the | ||
person's
| ||
(A) relative railway operating income from total | ||
passenger and total
freight service, as reported to the | ||
Interstate Commerce Commission, in
the case of | ||
transportation by railroad, and
| ||
(B) relative gross receipts from passenger and | ||
freight
transportation, in case of transportation |
other than by railroad.
| ||
(2) Such business income derived from transportation | ||
by pipeline
shall be apportioned to this State by | ||
multiplying such income by a
fraction, the numerator of | ||
which is the revenue miles of the person in
this State, and | ||
the denominator of which is the revenue miles of the
person | ||
everywhere. For the purposes of this paragraph, a revenue | ||
mile is
the transportation by pipeline of 1 barrel of oil, | ||
1,000 cubic feet of
gas, or of any specified quantity of | ||
any other substance, the distance
of 1 mile for a | ||
consideration.
| ||
(3) For taxable years ending on or after December 31, | ||
2008, business income derived from providing | ||
transportation services other than airline services shall | ||
be apportioned to this State by using a fraction, (a) the | ||
numerator of which shall be (i) all receipts from any | ||
movement or shipment of people, goods, mail, oil, gas, or | ||
any other substance (other than by airline) that both | ||
originates and terminates in this State, plus (ii) that | ||
portion of the person's gross receipts from movements or | ||
shipments of people, goods, mail, oil, gas, or any other | ||
substance (other than by airline) that originates in one | ||
state or jurisdiction and terminates in another state or | ||
jurisdiction, that is determined by the ratio that the | ||
miles traveled in this State bears to total miles | ||
everywhere and (b) the denominator of which shall be all |
revenue derived from the movement or shipment of people, | ||
goods, mail, oil, gas, or any other substance (other than | ||
by airline). Where a taxpayer is engaged in the | ||
transportation of both passengers and freight, the | ||
fraction above referred to shall first be determined | ||
separately for passenger miles and freight miles. Then an | ||
average of the passenger miles fraction and the freight | ||
miles fraction shall be weighted to reflect the taxpayer's: | ||
(A) relative railway operating income from total | ||
passenger and total freight service, as reported to the | ||
Surface Transportation Board, in the case of | ||
transportation by railroad; and
| ||
(B) relative gross receipts from passenger and | ||
freight transportation, in case of transportation | ||
other than by railroad.
| ||
(4) For taxable years ending on or after December 31, | ||
2008, business income derived from furnishing airline
| ||
transportation services shall be apportioned to this State | ||
by
multiplying such income by a fraction, the numerator of | ||
which is the
revenue miles of the person in this State, and | ||
the denominator of which
is the revenue miles of the person | ||
everywhere. For purposes of this
paragraph, a revenue mile | ||
is the transportation of one passenger or one net
ton of | ||
freight the distance of one mile for a consideration. If a
| ||
person is engaged in the transportation of both passengers | ||
and freight,
the fraction above referred to shall be |
determined by means of an
average of the passenger revenue | ||
mile fraction and the freight revenue
mile fraction, | ||
weighted to reflect the person's relative gross receipts | ||
from passenger and freight
airline transportation.
| ||
(e) Combined apportionment. Where 2 or more persons are | ||
engaged in
a unitary business as described in subsection | ||
(a)(27) of
Section 1501,
a part of which is conducted in this | ||
State by one or more members of the
group, the business income | ||
attributable to this State by any such member
or members shall | ||
be apportioned by means of the combined apportionment method.
| ||
(f) Alternative allocation. If the allocation and | ||
apportionment
provisions of subsections (a) through (e) and of | ||
subsection (h) do not
fairly represent the
extent of a person's | ||
business activity in this State, the person may
petition for, | ||
or the Director may, without a petition, permit or require, in | ||
respect of all or any part
of the person's business activity, | ||
if reasonable:
| ||
(1) Separate accounting;
| ||
(2) The exclusion of any one or more factors;
| ||
(3) The inclusion of one or more additional factors | ||
which will
fairly represent the person's business | ||
activities in this State; or
| ||
(4) The employment of any other method to effectuate an | ||
equitable
allocation and apportionment of the person's | ||
business income.
| ||
(g) Cross reference. For allocation of business income by |
residents,
see Section 301(a).
| ||
(h) For tax years ending on or after December 31, 1998, the | ||
apportionment
factor of persons who apportion their business | ||
income to this State under
subsection (a) shall be equal to:
| ||
(1) for tax years ending on or after December 31, 1998 | ||
and before December
31, 1999, 16 2/3% of the property | ||
factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||
the sales factor;
| ||
(2) for tax years ending on or after December 31, 1999 | ||
and before December
31,
2000, 8 1/3% of the property factor | ||
plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||
factor;
| ||
(3) for tax years ending on or after December 31, 2000, | ||
the sales factor.
| ||
If, in any tax year ending on or after December 31, 1998 and | ||
before December
31, 2000, the denominator of the payroll, | ||
property, or sales factor is zero,
the apportionment
factor | ||
computed in paragraph (1) or (2) of this subsection for that | ||
year shall
be divided by an amount equal to 100% minus the | ||
percentage weight given to each
factor whose denominator is | ||
equal to zero.
| ||
(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11; | ||
97-636, eff. 6-1-12 .)
| ||
(35 ILCS 5/701) (from Ch. 120, par. 7-701) | ||
Sec. 701. Requirement and Amount of Withholding.
|
(a) In General. Every
employer maintaining an office or | ||
transacting business within this State
and required under the | ||
provisions of the Internal Revenue Code to
withhold a tax on:
| ||
(1) compensation paid in this State (as determined | ||
under Section
304(a)(2)(B) to an individual; or
| ||
(2) payments described in subsection (b) shall deduct | ||
and withhold from
such compensation for each payroll period | ||
(as defined in Section 3401 of
the Internal Revenue Code) | ||
an amount equal to the amount by which such
individual's
| ||
compensation exceeds the proportionate part of this | ||
withholding exemption
(computed as provided in Section | ||
702) attributable to the payroll period
for which such | ||
compensation is payable multiplied by a percentage equal
to | ||
the percentage tax rate for individuals provided in | ||
subsection (b) of
Section 201.
| ||
(b) Payment to Residents. Any payment (including | ||
compensation , but not including a payment from which | ||
withholding is required under Section 710 of this Act ) to a
| ||
resident
by a payor maintaining an office or transacting | ||
business within this State
(including any agency, officer, or | ||
employee of this State or of any political
subdivision of this | ||
State) and on which withholding of tax is required under
the | ||
provisions of the
Internal Revenue Code shall be deemed to be | ||
compensation paid in this State
by an employer to an employee | ||
for the purposes of Article 7 and Section
601(b)(1) to the | ||
extent such payment is included in the recipient's base
income |
and not subjected to withholding by another state.
| ||
Notwithstanding any other provision to the contrary, no amount | ||
shall be
withheld from unemployment insurance benefit payments | ||
made to an individual
pursuant to the Unemployment Insurance | ||
Act unless the individual has
voluntarily elected the | ||
withholding pursuant to rules promulgated by the
Director of | ||
Employment Security.
| ||
(c) Special Definitions. Withholding shall be considered | ||
required under
the provisions of the Internal Revenue Code to | ||
the extent the Internal Revenue
Code either requires | ||
withholding or allows for voluntary withholding the
payor and | ||
recipient have entered into such a voluntary withholding | ||
agreement.
For the purposes of Article 7 and Section 1002(c) | ||
the term "employer" includes
any payor who is required to | ||
withhold tax pursuant to this Section.
| ||
(d) Reciprocal Exemption. The Director may enter into an | ||
agreement with
the taxing authorities of any state which | ||
imposes a tax on or measured by
income to provide that | ||
compensation paid in such state to residents of this
State | ||
shall be exempt from withholding of such tax; in such case, any
| ||
compensation paid in this State to residents of such state | ||
shall be exempt
from withholding.
All reciprocal agreements | ||
shall be subject to the requirements of Section
2505-575 of the | ||
Department of Revenue Law (20 ILCS
2505/2505-575).
| ||
(e) Notwithstanding subsection (a)(2) of this Section, no | ||
withholding
is required on payments for which withholding is |
required under Section
3405 or 3406 of the Internal Revenue | ||
Code.
| ||
(Source: P.A. 97-507, eff. 8-23-11.)
| ||
(35 ILCS 5/710) (from Ch. 120, par. 7-710)
| ||
Sec. 710. Withholding from lottery winnings. (a) In | ||
General. | ||
(1) Any person
making a payment to a resident or | ||
nonresident of winnings under the Illinois
Lottery Law and | ||
not required to withhold Illinois income tax from such | ||
payment
under Subsection (b) of Section 701 of this Act | ||
because those winnings are
not subject to Federal income | ||
tax withholding, must withhold Illinois income
tax from | ||
such payment at a rate equal to the percentage tax rate for | ||
individuals
provided in subsection (b) of Section 201, | ||
provided that withholding is
not required if such payment | ||
of winnings is less than $1,000.
| ||
(2) In the case of an assignment of a lottery prize | ||
under Section 13.1 of the Illinois Lottery Law, any person | ||
making a payment of the purchase price after December 31, | ||
2013, shall withhold from the amount of each payment at a | ||
rate equal to the percentage tax rate for individuals | ||
provided in subsection (b) of Section 201. | ||
(b) Credit for taxes withheld. Any amount withheld under | ||
Subsection (a)
shall be a credit against the Illinois income | ||
tax liability of the person
to whom the payment of winnings was |
made for the taxable year in which that
person incurred an | ||
Illinois income tax liability with respect to those winnings.
| ||
(Source: P.A. 85-731.)
| ||
(35 ILCS 5/905) (from Ch. 120, par. 9-905)
| ||
Sec. 905. Limitations on Notices of Deficiency.
| ||
(a) In general. Except as otherwise provided in this Act:
| ||
(1) A notice of deficiency shall be issued not later | ||
than 3 years
after the date the return was filed, and
| ||
(2) No deficiency shall be assessed or collected with | ||
respect to the
year for which the return was filed unless | ||
such notice is issued within such
period.
| ||
(b) Substantial omission of items. | ||
(1) Omission of more than 25% of income. If the | ||
taxpayer omits
from base income an amount properly | ||
includible therein which is in
excess of 25% of the amount | ||
of base income stated in the return, a
notice of deficiency | ||
may be issued not later than 6 years after the
return was | ||
filed. For purposes of this paragraph, there shall not be
| ||
taken into account any amount which is omitted in the | ||
return if such
amount is disclosed in the return, or in a | ||
statement attached to the
return, in a manner adequate to | ||
apprise the Department of the nature and
the amount of such | ||
item.
| ||
(2) Reportable transactions. If a taxpayer fails to | ||
include on any return or statement for any taxable year any |
information with respect to a reportable transaction, as | ||
required under Section 501(b) of this Act, a notice of | ||
deficiency may be issued not later than 6 years after the | ||
return is filed with respect to the taxable year in which | ||
the taxpayer participated in the reportable transaction | ||
and said deficiency is limited to the non-disclosed item.
| ||
(3) Withholding. If an employer omits from a return | ||
required under Section 704A of this Act for any period | ||
beginning on or after January 1, 2013, an amount required | ||
to be withheld and to be reported on that return which is | ||
in excess of 25% of the total amount of withholding | ||
required to be reported on that return, a notice of | ||
deficiency may be issued not later than 6 years after the | ||
return was filed. | ||
(c) No return or fraudulent return. If no return is filed | ||
or a
false and fraudulent return is filed with intent to evade | ||
the tax
imposed by this Act, a notice of deficiency may be | ||
issued at any time. For purposes of this subsection (c), any | ||
taxpayer who is required to join in the filing of a return | ||
filed under the provisions of subsection (e) of Section 502 of | ||
this Act for a taxable year ending on or after December 31, | ||
2013 and who is not included on that return and does not file | ||
its own return for that taxable year shall be deemed to have | ||
failed to file a return; provided that the amount of any | ||
proposed assessment set forth in a notice of deficiency issued | ||
under this subsection (c) shall be limited to the amount of any |
increase in liability under this Act that should have reported | ||
on the return required under the provisions of subsection (e) | ||
of Section 502 of this Act for that taxable year resulting from | ||
proper inclusion of that taxpayer on that return.
| ||
(d) Failure to report federal change. If a taxpayer fails | ||
to
notify the Department in any case where notification is | ||
required by
Section 304(c) or 506(b), or fails to report a | ||
change or correction which is
treated in the same manner as if | ||
it were a deficiency for federal income
tax purposes, a notice | ||
of deficiency may be issued (i) at any time or
(ii) on or after | ||
August 13, 1999, at any time for the
taxable year for which the | ||
notification is required or for any taxable year to
which the | ||
taxpayer may carry an Article 2 credit, or a Section 207 loss,
| ||
earned, incurred, or used in the year for which the | ||
notification is required;
provided, however, that the amount of | ||
any proposed assessment set forth in the
notice shall be | ||
limited to the amount of any deficiency resulting under this
| ||
Act from the recomputation of the taxpayer's net income, | ||
Article 2 credits, or
Section 207 loss earned, incurred, or | ||
used in the taxable year for which the
notification is required | ||
after giving effect to the item or items required to
be | ||
reported.
| ||
(e) Report of federal change.
| ||
(1) Before August 13, 1999, in any case where | ||
notification of
an alteration is given as required by | ||
Section 506(b), a notice of
deficiency may be issued at any |
time within 2 years after the date such
notification is | ||
given, provided, however, that the amount of any
proposed | ||
assessment set forth in such notice shall be limited to the
| ||
amount of any deficiency resulting under this Act from | ||
recomputation of
the taxpayer's net income, net loss, or | ||
Article 2 credits
for the taxable year after giving
effect | ||
to the item
or items reflected in the reported alteration.
| ||
(2) On and after August 13, 1999, in any case where | ||
notification of
an alteration is given as required by | ||
Section 506(b), a notice of
deficiency may be issued at any | ||
time within 2 years after the date such
notification is | ||
given for the taxable year for which the notification is
| ||
given or for any taxable year to which the taxpayer may | ||
carry an Article 2
credit, or a Section 207 loss, earned, | ||
incurred, or used in the year for which
the notification is | ||
given, provided, however, that the amount of any
proposed | ||
assessment set forth in such notice shall be limited to the
| ||
amount of any deficiency resulting under this Act from | ||
recomputation of
the taxpayer's net income, Article 2 | ||
credits, or Section 207
loss earned, incurred, or used in
| ||
the taxable year for which the notification is given after | ||
giving
effect to the item
or items reflected in the | ||
reported alteration.
| ||
(f) Extension by agreement. Where, before the expiration of | ||
the
time prescribed in this Section for the issuance of a | ||
notice of
deficiency, both the Department and the taxpayer |
shall have consented in
writing to its issuance after such | ||
time, such notice may be issued at
any time prior to the | ||
expiration of the period agreed upon.
In the case of a taxpayer | ||
who is a partnership, Subchapter S corporation, or
trust and | ||
who enters into an agreement with the Department pursuant to | ||
this
subsection on or after January 1, 2003, a notice of | ||
deficiency may be issued to
the partners, shareholders, or | ||
beneficiaries of the taxpayer at any time prior
to the | ||
expiration of the period agreed upon. Any
proposed assessment | ||
set forth in the notice, however, shall be limited to the
| ||
amount of
any deficiency resulting under this Act from | ||
recomputation of items of income,
deduction, credits, or other | ||
amounts of the taxpayer that are taken into
account by the | ||
partner, shareholder, or beneficiary in computing its | ||
liability
under this Act.
The period
so agreed upon may be | ||
extended by subsequent agreements in writing made
before the | ||
expiration of the period previously agreed upon.
| ||
(g) Erroneous refunds. In any case in which there has been | ||
an
erroneous refund of tax payable under this Act, a notice of | ||
deficiency
may be issued at any time within 2 years from the | ||
making of such refund,
or within 5 years from the making of | ||
such refund if it appears that any
part of the refund was | ||
induced by fraud or the misrepresentation of a
material fact, | ||
provided, however, that the amount of any proposed
assessment | ||
set forth in such notice shall be limited to the amount of
such | ||
erroneous refund.
|
Beginning July 1, 1993, in any case in which there has been | ||
a refund of tax
payable under this Act attributable to a net | ||
loss carryback as provided for in
Section 207, and that refund | ||
is subsequently determined to be an erroneous
refund due to a | ||
reduction in the amount of the net loss which was originally
| ||
carried back, a notice of deficiency for the erroneous refund | ||
amount may be
issued at any time during the same time period in | ||
which a notice of deficiency
can be issued on the loss year | ||
creating the carryback amount and subsequent
erroneous refund. | ||
The amount of any proposed assessment set forth in the notice
| ||
shall be limited to the amount of such erroneous refund.
| ||
(h) Time return deemed filed. For purposes of this Section | ||
a tax
return filed before the last day prescribed by law | ||
(including any
extension thereof) shall be deemed to have been | ||
filed on such last day.
| ||
(i) Request for prompt determination of liability. For | ||
purposes
of subsection (a)(1), in the case of a tax return | ||
required under this
Act in respect of a decedent, or by his | ||
estate during the period of
administration, or by a | ||
corporation, the period referred to in such
Subsection shall be | ||
18 months after a written request for prompt
determination of | ||
liability is filed with the Department (at such time
and in | ||
such form and manner as the Department shall by regulations
| ||
prescribe) by the executor, administrator, or other fiduciary
| ||
representing the estate of such decedent, or by such | ||
corporation, but
not more than 3 years after the date the |
return was filed. This
subsection shall not apply in the case | ||
of a corporation unless:
| ||
(1) (A) such written request notifies the Department | ||
that the
corporation contemplates dissolution at or before | ||
the expiration of such
18-month period, (B) the dissolution | ||
is begun in good faith before the
expiration of such | ||
18-month period, and (C) the dissolution is completed;
| ||
(2) (A) such written request notifies the Department | ||
that a
dissolution has in good faith been begun, and (B) | ||
the dissolution is
completed; or
| ||
(3) a dissolution has been completed at the time such | ||
written
request is made.
| ||
(j) Withholding tax. In the case of returns required under | ||
Article 7
of this Act (with respect to any amounts withheld as | ||
tax or any amounts
required to have been withheld as tax) a | ||
notice of deficiency shall be
issued not later than 3 years | ||
after the 15th day of the 4th month
following the close of the | ||
calendar year in which such withholding was
required.
| ||
(k) Penalties for failure to make information reports. A | ||
notice of
deficiency for the penalties provided by Subsection | ||
1405.1(c) of this Act may
not be issued more than 3 years after | ||
the due date of the reports with respect
to which the penalties | ||
are asserted.
| ||
(l) Penalty for failure to file withholding returns. A | ||
notice of deficiency
for penalties provided by Section 1004 of | ||
this Act for taxpayer's failure
to file withholding returns may |
not be issued more than three years after
the 15th day of the | ||
4th month following the close of the calendar year in
which the | ||
withholding giving rise to taxpayer's obligation to file those
| ||
returns occurred.
| ||
(m) Transferee liability. A notice of deficiency may be | ||
issued to a
transferee relative to a liability asserted under | ||
Section 1405 during time
periods defined as follows:
| ||
1) Initial Transferee. In the case of the liability of | ||
an initial
transferee, up to 2 years after the expiration | ||
of the period of limitation for
assessment against the | ||
transferor, except that if a court proceeding for review
of | ||
the assessment against the transferor has begun, then up to | ||
2 years after
the return of the certified copy of the | ||
judgment in the court proceeding.
| ||
2) Transferee of Transferee. In the case of the | ||
liability of a
transferee,
up to 2 years after the | ||
expiration of the period of limitation for assessment
| ||
against the preceding transferee, but not more than 3 years | ||
after the
expiration of the period of limitation for | ||
assessment against the initial
transferor; except that if, | ||
before the expiration of the period of limitation
for the | ||
assessment of the liability of the transferee, a court | ||
proceeding for
the collection of the tax or liability in | ||
respect thereof has been begun
against the initial | ||
transferor or the last preceding transferee, as the case
| ||
may be, then the period of limitation for assessment of the |
liability of the
transferee shall expire 2 years after the | ||
return of the certified copy of the
judgment in the court | ||
proceeding.
| ||
(n) Notice of decrease in net loss. On and after August 23, | ||
2002, no notice of deficiency shall
be issued as the result of | ||
a decrease determined by the Department in the net
loss | ||
incurred by a taxpayer in any taxable year ending prior to | ||
December 31, 2002 under Section 207 of this Act unless the | ||
Department
has notified the taxpayer of the proposed decrease | ||
within 3 years after the
return reporting the loss was filed or | ||
within one year after an amended return
reporting an increase | ||
in the loss was filed, provided that in the case of an
amended | ||
return, a decrease proposed by the Department more than 3 years | ||
after
the original return was filed may not exceed the increase | ||
claimed by the
taxpayer on the original return.
| ||
(Source: P.A. 93-840, eff. 7-30-04; 94-836, eff. 6-6-06.)
| ||
Section 25. The Use Tax Act is amended by changing Section | ||
9 as follows:
| ||
(35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||
Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||
and
trailers that are required to be registered with an agency | ||
of this State,
each retailer
required or authorized to collect | ||
the tax imposed by this Act shall pay
to the Department the | ||
amount of such tax (except as otherwise provided)
at the time |
when he is required to file his return for the period during
| ||
which such tax was collected, less a discount of 2.1% prior to
| ||
January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||
per calendar
year, whichever is greater, which is allowed to | ||
reimburse the retailer
for expenses incurred in collecting the | ||
tax, keeping records, preparing
and filing returns, remitting | ||
the tax and supplying data to the
Department on request. In the | ||
case of retailers who report and pay the
tax on a transaction | ||
by transaction basis, as provided in this Section,
such | ||
discount shall be taken with each such tax remittance instead | ||
of
when such retailer files his periodic return. The Department | ||
may disallow the discount for retailers whose certificate of | ||
registration is revoked at the time the return is filed, but | ||
only if the Department's decision to revoke the certificate of | ||
registration has become final. A retailer need not remit
that | ||
part of any tax collected by him to the extent that he is | ||
required
to remit and does remit the tax imposed by the | ||
Retailers' Occupation
Tax Act, with respect to the sale of the | ||
same property. | ||
Where such tangible personal property is sold under a | ||
conditional
sales contract, or under any other form of sale | ||
wherein the payment of
the principal sum, or a part thereof, is | ||
extended beyond the close of
the period for which the return is | ||
filed, the retailer, in collecting
the tax (except as to motor | ||
vehicles, watercraft, aircraft, and
trailers that are required | ||
to be registered with an agency of this State),
may collect for |
each
tax return period, only the tax applicable to that part of | ||
the selling
price actually received during such tax return | ||
period. | ||
Except as provided in this Section, on or before the | ||
twentieth day of each
calendar month, such retailer shall file | ||
a return for the preceding
calendar month. Such return shall be | ||
filed on forms prescribed by the
Department and shall furnish | ||
such information as the Department may
reasonably require. | ||
The Department may require returns to be filed on a | ||
quarterly basis.
If so required, a return for each calendar | ||
quarter shall be filed on or
before the twentieth day of the | ||
calendar month following the end of such
calendar quarter. The | ||
taxpayer shall also file a return with the
Department for each | ||
of the first two months of each calendar quarter, on or
before | ||
the twentieth day of the following calendar month, stating: | ||
1. The name of the seller; | ||
2. The address of the principal place of business from | ||
which he engages
in the business of selling tangible | ||
personal property at retail in this State; | ||
3. The total amount of taxable receipts received by him | ||
during the
preceding calendar month from sales of tangible | ||
personal property by him
during such preceding calendar | ||
month, including receipts from charge and
time sales, but | ||
less all deductions allowed by law; | ||
4. The amount of credit provided in Section 2d of this | ||
Act; |
5. The amount of tax due; | ||
5-5. The signature of the taxpayer; and | ||
6. Such other reasonable information as the Department | ||
may
require. | ||
If a taxpayer fails to sign a return within 30 days after | ||
the proper notice
and demand for signature by the Department, | ||
the return shall be considered
valid and any amount shown to be | ||
due on the return shall be deemed assessed. | ||
Beginning October 1, 1993, a taxpayer who has an average | ||
monthly tax
liability of $150,000 or more shall make all | ||
payments required by rules of the
Department by electronic | ||
funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||
an average monthly tax liability of $100,000 or more shall make | ||
all
payments required by rules of the Department by electronic | ||
funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||
an average monthly tax liability
of $50,000 or more shall make | ||
all payments required by rules of the Department
by electronic | ||
funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||
an annual tax liability of $200,000 or more shall make all | ||
payments required by
rules of the Department by electronic | ||
funds transfer. The term "annual tax
liability" shall be the | ||
sum of the taxpayer's liabilities under this Act, and
under all | ||
other State and local occupation and use tax laws administered | ||
by the
Department, for the immediately preceding calendar year. | ||
The term "average
monthly tax liability" means
the sum of the | ||
taxpayer's liabilities under this Act, and under all other |
State
and local occupation and use tax laws administered by the | ||
Department, for the
immediately preceding calendar year | ||
divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||
a tax liability in the
amount set forth in subsection (b) of | ||
Section 2505-210 of the Department of
Revenue Law shall make | ||
all payments required by rules of the Department by
electronic | ||
funds transfer. | ||
Before August 1 of each year beginning in 1993, the | ||
Department shall notify
all taxpayers required to make payments | ||
by electronic funds transfer. All
taxpayers required to make | ||
payments by electronic funds transfer shall make
those payments | ||
for a minimum of one year beginning on October 1. | ||
Any taxpayer not required to make payments by electronic | ||
funds transfer may
make payments by electronic funds transfer | ||
with the permission of the
Department. | ||
All taxpayers required to make payment by electronic funds | ||
transfer and any
taxpayers authorized to voluntarily make | ||
payments by electronic funds transfer
shall make those payments | ||
in the manner authorized by the Department. | ||
The Department shall adopt such rules as are necessary to | ||
effectuate a
program of electronic funds transfer and the | ||
requirements of this Section. | ||
Before October 1, 2000, if the taxpayer's average monthly | ||
tax liability
to the Department
under this Act, the Retailers' | ||
Occupation Tax Act, the Service
Occupation Tax Act, the Service | ||
Use Tax Act was $10,000 or more
during
the preceding 4 complete |
calendar quarters, he shall file a return with the
Department | ||
each month by the 20th day of the month next following the | ||
month
during which such tax liability is incurred and shall | ||
make payments to the
Department on or before the 7th, 15th, | ||
22nd and last day of the month
during which such liability is | ||
incurred.
On and after October 1, 2000, if the taxpayer's | ||
average monthly tax liability
to the Department under this Act, | ||
the Retailers' Occupation Tax Act,
the
Service Occupation Tax | ||
Act, and the Service Use Tax Act was $20,000 or more
during the | ||
preceding 4 complete calendar quarters, he shall file a return | ||
with
the Department each month by the 20th day of the month | ||
next following the month
during which such tax liability is | ||
incurred and shall make payment to the
Department on or before | ||
the 7th, 15th, 22nd and last day of the
month during
which such | ||
liability is incurred.
If the month during which such tax
| ||
liability is incurred began prior to January 1, 1985, each | ||
payment shall be
in an amount equal to 1/4 of the taxpayer's
| ||
actual liability for the month or an amount set by the | ||
Department not to
exceed 1/4 of the average monthly liability | ||
of the taxpayer to the
Department for the preceding 4 complete | ||
calendar quarters (excluding the
month of highest liability and | ||
the month of lowest liability in such 4
quarter period). If the | ||
month during which such tax liability is incurred
begins on or | ||
after January 1, 1985, and prior to January 1, 1987, each
| ||
payment shall be in an amount equal to 22.5% of the taxpayer's | ||
actual liability
for the month or 27.5% of the taxpayer's |
liability for the same calendar
month of the preceding year. If | ||
the month during which such tax liability
is incurred begins on | ||
or after January 1, 1987, and prior to January 1,
1988, each | ||
payment shall be in an amount equal to 22.5% of the taxpayer's
| ||
actual liability for the month or 26.25% of the taxpayer's | ||
liability for
the same calendar month of the preceding year. If | ||
the month during which such
tax liability is incurred begins on | ||
or after January 1, 1988, and prior to
January 1, 1989,
or | ||
begins on or after January 1, 1996, each payment shall be in an | ||
amount equal
to 22.5% of the taxpayer's actual liability for | ||
the month or 25% of the
taxpayer's liability for the same | ||
calendar month of the preceding year. If the
month during which | ||
such tax liability is incurred begins on or after January 1,
| ||
1989,
and prior to January 1, 1996, each payment shall be in an | ||
amount equal to 22.5%
of the taxpayer's actual liability for | ||
the month or 25% of the taxpayer's
liability for the same | ||
calendar month of the preceding year or 100% of the
taxpayer's | ||
actual liability for the quarter monthly reporting period. The
| ||
amount of such quarter monthly payments shall be credited | ||
against the final tax
liability
of the taxpayer's return for | ||
that month. Before October 1, 2000, once
applicable, the | ||
requirement
of the making of quarter monthly payments to the | ||
Department shall continue
until such taxpayer's average | ||
monthly liability to the Department during
the preceding 4 | ||
complete calendar quarters (excluding the month of highest
| ||
liability and the month of lowest liability) is less than
|
$9,000, or until
such taxpayer's average monthly liability to | ||
the Department as computed for
each calendar quarter of the 4 | ||
preceding complete calendar quarter period
is less than | ||
$10,000. However, if a taxpayer can show the
Department that
a | ||
substantial change in the taxpayer's business has occurred | ||
which causes
the taxpayer to anticipate that his average | ||
monthly tax liability for the
reasonably foreseeable future | ||
will fall below the $10,000 threshold
stated above, then
such | ||
taxpayer
may petition the Department for change in such | ||
taxpayer's reporting status.
On and after October 1, 2000, once | ||
applicable, the requirement of the making
of quarter monthly | ||
payments to the Department shall continue until such
taxpayer's | ||
average monthly liability to the Department during the | ||
preceding 4
complete calendar quarters (excluding the month of | ||
highest liability and the
month of lowest liability) is less | ||
than $19,000 or until such taxpayer's
average monthly liability | ||
to the Department as computed for each calendar
quarter of the | ||
4 preceding complete calendar quarter period is less than
| ||
$20,000. However, if a taxpayer can show the Department that a | ||
substantial
change in the taxpayer's business has occurred | ||
which causes the taxpayer to
anticipate that his average | ||
monthly tax liability for the reasonably
foreseeable future | ||
will fall below the $20,000 threshold stated above, then
such | ||
taxpayer may petition the Department for a change in such | ||
taxpayer's
reporting status.
The Department shall change such | ||
taxpayer's reporting status unless it
finds that such change is |
seasonal in nature and not likely to be long
term. If any such | ||
quarter monthly payment is not paid at the time or in
the | ||
amount required by this Section, then the taxpayer shall be | ||
liable for
penalties and interest on
the difference between the | ||
minimum amount due and the amount of such
quarter monthly | ||
payment actually and timely paid, except insofar as the
| ||
taxpayer has previously made payments for that month to the | ||
Department in
excess of the minimum payments previously due as | ||
provided in this Section.
The Department shall make reasonable | ||
rules and regulations to govern the
quarter monthly payment | ||
amount and quarter monthly payment dates for
taxpayers who file | ||
on other than a calendar monthly basis. | ||
If any such payment provided for in this Section exceeds | ||
the taxpayer's
liabilities under this Act, the Retailers' | ||
Occupation Tax Act, the Service
Occupation Tax Act and the | ||
Service Use Tax Act, as shown by an original
monthly return, | ||
the Department shall issue to the taxpayer a credit
memorandum | ||
no later than 30 days after the date of payment, which
| ||
memorandum may be submitted by the taxpayer to the Department | ||
in payment of
tax liability subsequently to be remitted by the | ||
taxpayer to the Department
or be assigned by the taxpayer to a | ||
similar taxpayer under this Act, the
Retailers' Occupation Tax | ||
Act, the Service Occupation Tax Act or the
Service Use Tax Act, | ||
in accordance with reasonable rules and regulations to
be | ||
prescribed by the Department, except that if such excess | ||
payment is
shown on an original monthly return and is made |
after December 31, 1986, no
credit memorandum shall be issued, | ||
unless requested by the taxpayer. If no
such request is made, | ||
the taxpayer may credit such excess payment against
tax | ||
liability subsequently to be remitted by the taxpayer to the | ||
Department
under this Act, the Retailers' Occupation Tax Act, | ||
the Service Occupation
Tax Act or the Service Use Tax Act, in | ||
accordance with reasonable rules and
regulations prescribed by | ||
the Department. If the Department subsequently
determines that | ||
all or any part of the credit taken was not actually due to
the | ||
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||
be
reduced by 2.1% or 1.75% of the difference between the | ||
credit taken and
that actually due, and the taxpayer shall be | ||
liable for penalties and
interest on such difference. | ||
If the retailer is otherwise required to file a monthly | ||
return and if the
retailer's average monthly tax liability to | ||
the Department
does not exceed $200, the Department may | ||
authorize his returns to be
filed on a quarter annual basis, | ||
with the return for January, February,
and March of a given | ||
year being due by April 20 of such year; with the
return for | ||
April, May and June of a given year being due by July 20 of
such | ||
year; with the return for July, August and September of a given
| ||
year being due by October 20 of such year, and with the return | ||
for
October, November and December of a given year being due by | ||
January 20
of the following year. | ||
If the retailer is otherwise required to file a monthly or | ||
quarterly
return and if the retailer's average monthly tax |
liability to the
Department does not exceed $50, the Department | ||
may authorize his returns to
be filed on an annual basis, with | ||
the return for a given year being due by
January 20 of the | ||
following year. | ||
Such quarter annual and annual returns, as to form and | ||
substance,
shall be subject to the same requirements as monthly | ||
returns. | ||
Notwithstanding any other provision in this Act concerning | ||
the time
within which a retailer may file his return, in the | ||
case of any retailer
who ceases to engage in a kind of business | ||
which makes him responsible
for filing returns under this Act, | ||
such retailer shall file a final
return under this Act with the | ||
Department not more than one month after
discontinuing such | ||
business. | ||
In addition, with respect to motor vehicles, watercraft,
| ||
aircraft, and trailers that are required to be registered with | ||
an agency of
this State, every
retailer selling this kind of | ||
tangible personal property shall file,
with the Department, | ||
upon a form to be prescribed and supplied by the
Department, a | ||
separate return for each such item of tangible personal
| ||
property which the retailer sells, except that if, in the same
| ||
transaction, (i) a retailer of aircraft, watercraft, motor | ||
vehicles or
trailers transfers more than
one aircraft, | ||
watercraft, motor
vehicle or trailer to another aircraft, | ||
watercraft, motor vehicle or
trailer retailer for the purpose | ||
of resale
or (ii) a retailer of aircraft, watercraft, motor |
vehicles, or trailers
transfers more than one aircraft, | ||
watercraft, motor vehicle, or trailer to a
purchaser for use as | ||
a qualifying rolling stock as provided in Section 3-55 of
this | ||
Act, then
that seller may report the transfer of all the
| ||
aircraft, watercraft, motor
vehicles
or trailers involved in | ||
that transaction to the Department on the same
uniform
| ||
invoice-transaction reporting return form.
For purposes of | ||
this Section, "watercraft" means a Class 2, Class 3, or
Class
4 | ||
watercraft as defined in Section 3-2 of the Boat Registration | ||
and Safety Act,
a
personal watercraft, or any boat equipped | ||
with an inboard motor. | ||
The transaction reporting return in the case of motor | ||
vehicles
or trailers that are required to be registered with an | ||
agency of this
State, shall
be the same document as the Uniform | ||
Invoice referred to in Section 5-402
of the Illinois Vehicle | ||
Code and must show the name and address of the
seller; the name | ||
and address of the purchaser; the amount of the selling
price | ||
including the amount allowed by the retailer for traded-in
| ||
property, if any; the amount allowed by the retailer for the | ||
traded-in
tangible personal property, if any, to the extent to | ||
which Section 2 of
this Act allows an exemption for the value | ||
of traded-in property; the
balance payable after deducting such | ||
trade-in allowance from the total
selling price; the amount of | ||
tax due from the retailer with respect to
such transaction; the | ||
amount of tax collected from the purchaser by the
retailer on | ||
such transaction (or satisfactory evidence that such tax is
not |
due in that particular instance, if that is claimed to be the | ||
fact);
the place and date of the sale; a sufficient | ||
identification of the
property sold; such other information as | ||
is required in Section 5-402 of
the Illinois Vehicle Code, and | ||
such other information as the Department
may reasonably | ||
require. | ||
The transaction reporting return in the case of watercraft
| ||
and aircraft must show
the name and address of the seller; the | ||
name and address of the
purchaser; the amount of the selling | ||
price including the amount allowed
by the retailer for | ||
traded-in property, if any; the amount allowed by
the retailer | ||
for the traded-in tangible personal property, if any, to
the | ||
extent to which Section 2 of this Act allows an exemption for | ||
the
value of traded-in property; the balance payable after | ||
deducting such
trade-in allowance from the total selling price; | ||
the amount of tax due
from the retailer with respect to such | ||
transaction; the amount of tax
collected from the purchaser by | ||
the retailer on such transaction (or
satisfactory evidence that | ||
such tax is not due in that particular
instance, if that is | ||
claimed to be the fact); the place and date of the
sale, a | ||
sufficient identification of the property sold, and such other
| ||
information as the Department may reasonably require. | ||
Such transaction reporting return shall be filed not later | ||
than 20
days after the date of delivery of the item that is | ||
being sold, but may
be filed by the retailer at any time sooner | ||
than that if he chooses to
do so. The transaction reporting |
return and tax remittance or proof of
exemption from the tax | ||
that is imposed by this Act may be transmitted to
the | ||
Department by way of the State agency with which, or State | ||
officer
with whom, the tangible personal property must be | ||
titled or registered
(if titling or registration is required) | ||
if the Department and such
agency or State officer determine | ||
that this procedure will expedite the
processing of | ||
applications for title or registration. | ||
With each such transaction reporting return, the retailer | ||
shall remit
the proper amount of tax due (or shall submit | ||
satisfactory evidence that
the sale is not taxable if that is | ||
the case), to the Department or its
agents, whereupon the | ||
Department shall issue, in the purchaser's name, a
tax receipt | ||
(or a certificate of exemption if the Department is
satisfied | ||
that the particular sale is tax exempt) which such purchaser
| ||
may submit to the agency with which, or State officer with | ||
whom, he must
title or register the tangible personal property | ||
that is involved (if
titling or registration is required) in | ||
support of such purchaser's
application for an Illinois | ||
certificate or other evidence of title or
registration to such | ||
tangible personal property. | ||
No retailer's failure or refusal to remit tax under this | ||
Act
precludes a user, who has paid the proper tax to the | ||
retailer, from
obtaining his certificate of title or other | ||
evidence of title or
registration (if titling or registration | ||
is required) upon satisfying
the Department that such user has |
paid the proper tax (if tax is due) to
the retailer. The | ||
Department shall adopt appropriate rules to carry out
the | ||
mandate of this paragraph. | ||
If the user who would otherwise pay tax to the retailer | ||
wants the
transaction reporting return filed and the payment of | ||
tax or proof of
exemption made to the Department before the | ||
retailer is willing to take
these actions and such user has not | ||
paid the tax to the retailer, such
user may certify to the fact | ||
of such delay by the retailer, and may
(upon the Department | ||
being satisfied of the truth of such certification)
transmit | ||
the information required by the transaction reporting return
| ||
and the remittance for tax or proof of exemption directly to | ||
the
Department and obtain his tax receipt or exemption | ||
determination, in
which event the transaction reporting return | ||
and tax remittance (if a
tax payment was required) shall be | ||
credited by the Department to the
proper retailer's account | ||
with the Department, but without the 2.1% or 1.75%
discount | ||
provided for in this Section being allowed. When the user pays
| ||
the tax directly to the Department, he shall pay the tax in the | ||
same
amount and in the same form in which it would be remitted | ||
if the tax had
been remitted to the Department by the retailer. | ||
Where a retailer collects the tax with respect to the | ||
selling price
of tangible personal property which he sells and | ||
the purchaser
thereafter returns such tangible personal | ||
property and the retailer
refunds the selling price thereof to | ||
the purchaser, such retailer shall
also refund, to the |
purchaser, the tax so collected from the purchaser.
When filing | ||
his return for the period in which he refunds such tax to
the | ||
purchaser, the retailer may deduct the amount of the tax so | ||
refunded
by him to the purchaser from any other use tax which | ||
such retailer may
be required to pay or remit to the | ||
Department, as shown by such return,
if the amount of the tax | ||
to be deducted was previously remitted to the
Department by | ||
such retailer. If the retailer has not previously
remitted the | ||
amount of such tax to the Department, he is entitled to no
| ||
deduction under this Act upon refunding such tax to the | ||
purchaser. | ||
Any retailer filing a return under this Section shall also | ||
include
(for the purpose of paying tax thereon) the total tax | ||
covered by such
return upon the selling price of tangible | ||
personal property purchased by
him at retail from a retailer, | ||
but as to which the tax imposed by this
Act was not collected | ||
from the retailer filing such return, and such
retailer shall | ||
remit the amount of such tax to the Department when
filing such | ||
return. | ||
If experience indicates such action to be practicable, the | ||
Department
may prescribe and furnish a combination or joint | ||
return which will
enable retailers, who are required to file | ||
returns hereunder and also
under the Retailers' Occupation Tax | ||
Act, to furnish all the return
information required by both | ||
Acts on the one form. | ||
Where the retailer has more than one business registered |
with the
Department under separate registration under this Act, | ||
such retailer may
not file each return that is due as a single | ||
return covering all such
registered businesses, but shall file | ||
separate returns for each such
registered business. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into the
State and Local Sales Tax Reform Fund, a special | ||
fund in the State Treasury
which is hereby created, the net | ||
revenue realized for the preceding month
from the 1% tax on | ||
sales of food for human consumption which is to be
consumed off | ||
the premises where it is sold (other than alcoholic beverages,
| ||
soft drinks and food which has been prepared for immediate | ||
consumption) and
prescription and nonprescription medicines, | ||
drugs, medical appliances and
insulin, urine testing | ||
materials, syringes and needles used by diabetics. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the County and Mass Transit District Fund 4% of the | ||
net revenue realized
for the preceding month from the 6.25% | ||
general rate
on the selling price of tangible personal property | ||
which is purchased
outside Illinois at retail from a retailer | ||
and which is titled or
registered by an agency of this State's | ||
government. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the State and Local Sales Tax Reform Fund, a special | ||
fund in the State
Treasury, 20% of the net revenue realized
for | ||
the preceding month from the 6.25% general rate on the selling
| ||
price of tangible personal property, other than tangible |
personal property
which is purchased outside Illinois at retail | ||
from a retailer and which is
titled or registered by an agency | ||
of this State's government. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
State and Local Sales Tax Reform Fund 100% of the | ||
net revenue realized for the
preceding month from the 1.25% | ||
rate on the selling price of motor fuel and
gasohol. Beginning | ||
September 1, 2010, each
month the Department shall pay into the
| ||
State and Local Sales Tax Reform Fund 100% of the net revenue | ||
realized for the
preceding month from the 1.25% rate on the | ||
selling price of sales tax holiday items. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the Local Government Tax Fund 16% of the net revenue | ||
realized for the
preceding month from the 6.25% general rate on | ||
the selling price of
tangible personal property which is | ||
purchased outside Illinois at retail
from a retailer and which | ||
is titled or registered by an agency of this
State's | ||
government. | ||
Beginning October 1, 2009, each month the Department shall | ||
pay into the Capital Projects Fund an amount that is equal to | ||
an amount estimated by the Department to represent 80% of the | ||
net revenue realized for the preceding month from the sale of | ||
candy, grooming and hygiene products, and soft drinks that had | ||
been taxed at a rate of 1% prior to September 1, 2009 but that | ||
is now taxed at 6.25%. | ||
Beginning July 1, 2011, each
month the Department shall pay |
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue | ||
realized for the
preceding month from the 6.25% general rate on | ||
the selling price of sorbents used in Illinois in the process | ||
of sorbent injection as used to comply with the Environmental | ||
Protection Act or the federal Clean Air Act, but the total | ||
payment into the Clean Air Act (CAA) Permit Fund under this Act | ||
and the Retailers' Occupation Tax Act shall not exceed | ||
$2,000,000 in any fiscal year. | ||
Of the remainder of the moneys received by the Department | ||
pursuant to
this Act, (a) 1.75% thereof shall be paid
into the | ||
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on | ||
and after July 1, 1989, 3.8% thereof shall be paid into the
| ||
Build Illinois Fund; provided, however, that if in any fiscal | ||
year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||
may be, of the
moneys received by the Department and required | ||
to be paid into the Build
Illinois Fund pursuant to Section 3 | ||
of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax | ||
Act, Section 9 of the Service Use
Tax Act, and Section 9 of the | ||
Service Occupation Tax Act, such Acts being
hereinafter called | ||
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case | ||
may be, of moneys being hereinafter called the "Tax Act | ||
Amount",
and (2) the amount transferred to the Build Illinois | ||
Fund from the State
and Local Sales Tax Reform Fund shall be | ||
less than the Annual Specified
Amount (as defined in Section 3 | ||
of the Retailers' Occupation Tax Act), an
amount equal to the | ||
difference shall be immediately paid into the Build
Illinois |
Fund from other moneys received by the Department pursuant to | ||
the
Tax Acts; and further provided, that if on the last | ||
business day of any
month the sum of (1) the Tax Act Amount | ||
required to be deposited into the
Build Illinois Bond Account | ||
in the Build Illinois Fund during such month
and (2) the amount | ||
transferred during such month to the Build Illinois Fund
from | ||
the State and Local Sales Tax Reform Fund shall have been less | ||
than
1/12 of the Annual Specified Amount, an amount equal to | ||
the difference
shall be immediately paid into the Build | ||
Illinois Fund from other moneys
received by the Department | ||
pursuant to the Tax Acts; and,
further provided, that in no | ||
event shall the payments required under the
preceding proviso | ||
result in aggregate payments into the Build Illinois Fund
| ||
pursuant to this clause (b) for any fiscal year in excess of | ||
the greater
of (i) the Tax Act Amount or (ii) the Annual | ||
Specified Amount for such
fiscal year; and, further provided, | ||
that the amounts payable into the Build
Illinois Fund under | ||
this clause (b) shall be payable only until such time
as the | ||
aggregate amount on deposit under each trust
indenture securing | ||
Bonds issued and outstanding pursuant to the Build
Illinois | ||
Bond Act is sufficient, taking into account any future | ||
investment
income, to fully provide, in accordance with such | ||
indenture, for the
defeasance of or the payment of the | ||
principal of, premium, if any, and
interest on the Bonds | ||
secured by such indenture and on any Bonds expected
to be | ||
issued thereafter and all fees and costs payable with respect |
thereto,
all as certified by the Director of the
Bureau of the | ||
Budget (now Governor's Office of Management and Budget). If
on | ||
the last
business day of any month in which Bonds are | ||
outstanding pursuant to the
Build Illinois Bond Act, the | ||
aggregate of the moneys deposited
in the Build Illinois Bond | ||
Account in the Build Illinois Fund in such month
shall be less | ||
than the amount required to be transferred in such month from
| ||
the Build Illinois Bond Account to the Build Illinois Bond | ||
Retirement and
Interest Fund pursuant to Section 13 of the | ||
Build Illinois Bond Act, an
amount equal to such deficiency | ||
shall be immediately paid
from other moneys received by the | ||
Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||
provided, however, that any amounts paid to the
Build Illinois | ||
Fund in any fiscal year pursuant to this sentence shall be
| ||
deemed to constitute payments pursuant to clause (b) of the | ||
preceding
sentence and shall reduce the amount otherwise | ||
payable for such fiscal year
pursuant to clause (b) of the | ||
preceding sentence. The moneys received by
the Department | ||
pursuant to this Act and required to be deposited into the
| ||
Build Illinois Fund are subject to the pledge, claim and charge | ||
set forth
in Section 12 of the Build Illinois Bond Act. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
as provided in
the preceding paragraph or in any amendment | ||
thereto hereafter enacted, the
following specified monthly | ||
installment of the amount requested in the
certificate of the | ||
Chairman of the Metropolitan Pier and Exposition
Authority |
provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in
excess of the sums designated as "Total Deposit", shall be
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the Use Tax
Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 of the Service
Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retailers' Occupation Tax Act into
the McCormick Place | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||
Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||
year thereafter,
one-eighth of the amount requested in the | ||||||||||||||
certificate of the Chairman of
the Metropolitan Pier and | ||||||||||||||
Exposition Authority for that fiscal year, less
the amount | ||||||||||||||
deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||
the
State Treasurer in the respective month under subsection | ||||||||||||||
(g) of Section 13
of the Metropolitan Pier and Exposition | ||||||||||||||
Authority Act, plus cumulative
deficiencies in the deposits | ||||||||||||||
required under this Section for previous
months and years, | ||||||||||||||
shall be deposited into the McCormick Place Expansion
Project | ||||||||||||||
Fund, until the full amount requested for the fiscal year, but | ||||||||||||||
not
in excess of the amount specified above as "Total Deposit", | ||||||||||||||
has been deposited. | ||||||||||||||
Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||
and the
McCormick Place Expansion Project Fund pursuant to the | ||||||||||||||
preceding paragraphs or
in any amendments thereto
hereafter | ||||||||||||||
enacted,
beginning July 1, 1993, the Department shall each | ||||||||||||||
month pay into the Illinois
Tax Increment Fund 0.27% of 80% of | ||||||||||||||
the net revenue realized for the preceding
month from the 6.25% | ||||||||||||||
general rate on the selling price of tangible personal
| ||||||||||||||
property. | ||||||||||||||
Subject to payment of amounts into the Build Illinois Fund |
and the
McCormick Place Expansion Project Fund pursuant to the | ||
preceding paragraphs or in any
amendments thereto hereafter | ||
enacted, beginning with the receipt of the first
report of | ||
taxes paid by an eligible business and continuing for a 25-year
| ||
period, the Department shall each month pay into the Energy | ||
Infrastructure
Fund 80% of the net revenue realized from the | ||
6.25% general rate on the
selling price of Illinois-mined coal | ||
that was sold to an eligible business.
For purposes of this | ||
paragraph, the term "eligible business" means a new
electric | ||
generating facility certified pursuant to Section 605-332 of | ||
the
Department of Commerce and
Economic Opportunity Law of the | ||
Civil Administrative
Code of Illinois. | ||
Of the remainder of the moneys received by the Department | ||
pursuant
to this Act, 75% thereof shall be paid into the State | ||
Treasury and 25%
shall be reserved in a special account and | ||
used only for the transfer to
the Common School Fund as part of | ||
the monthly transfer from the General
Revenue Fund in | ||
accordance with Section 8a of the State
Finance Act. | ||
As soon as possible after the first day of each month, upon | ||
certification
of the Department of Revenue, the Comptroller | ||
shall order transferred and
the Treasurer shall transfer from | ||
the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||
equal to 1.7% of 80% of the net revenue realized
under this Act | ||
for the second preceding month.
Beginning April 1, 2000, this | ||
transfer is no longer required
and shall not be made. | ||
Net revenue realized for a month shall be the revenue |
collected
by the State pursuant to this Act, less the amount | ||
paid out during that
month as refunds to taxpayers for | ||
overpayment of liability. | ||
For greater simplicity of administration, manufacturers, | ||
importers
and wholesalers whose products are sold at retail in | ||
Illinois by
numerous retailers, and who wish to do so, may | ||
assume the responsibility
for accounting and paying to the | ||
Department all tax accruing under this
Act with respect to such | ||
sales, if the retailers who are affected do not
make written | ||
objection to the Department to this arrangement. | ||
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | ||
eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11; | ||
97-333, eff. 8-12-11.)
| ||
Section 26. The Service Use Tax Act is amended by changing | ||
Section 9 as follows:
| ||
(35 ILCS 110/9) (from Ch. 120, par. 439.39) | ||
Sec. 9. Each serviceman required or authorized to collect | ||
the tax
herein imposed shall pay to the Department the amount | ||
of such tax
(except as otherwise provided) at the time when he | ||
is required to file
his return for the period during which such | ||
tax was collected, less a
discount of 2.1% prior to January 1, | ||
1990 and 1.75% on and after January 1,
1990, or $5 per calendar | ||
year, whichever is greater, which is allowed to
reimburse the | ||
serviceman for expenses incurred in collecting the tax,
keeping |
records, preparing and filing returns, remitting the tax and
| ||
supplying data to the Department on request. The Department may | ||
disallow the discount for servicemen whose certificate of | ||
registration is revoked at the time the return is filed, but | ||
only if the Department's decision to revoke the certificate of | ||
registration has become final. A serviceman need not remit
that | ||
part of any tax collected by him to the extent that he is | ||
required to
pay and does pay the tax imposed by the Service | ||
Occupation Tax Act with
respect to his sale of service | ||
involving the incidental transfer by him of
the same property. | ||
Except as provided hereinafter in this Section, on or | ||
before the twentieth
day of each calendar month, such | ||
serviceman shall file a return for the
preceding calendar month | ||
in accordance with reasonable Rules and
Regulations to be | ||
promulgated by the Department. Such return shall be
filed on a | ||
form prescribed by the Department and shall contain such
| ||
information as the Department may reasonably require. | ||
The Department may require returns to be filed on a | ||
quarterly basis.
If so required, a return for each calendar | ||
quarter shall be filed on or
before the twentieth day of the | ||
calendar month following the end of such
calendar quarter. The | ||
taxpayer shall also file a return with the
Department for each | ||
of the first two months of each calendar quarter, on or
before | ||
the twentieth day of the following calendar month, stating: | ||
1. The name of the seller; | ||
2. The address of the principal place of business from |
which he engages
in business as a serviceman in this State; | ||
3. The total amount of taxable receipts received by him | ||
during the
preceding calendar month, including receipts | ||
from charge and time sales,
but less all deductions allowed | ||
by law; | ||
4. The amount of credit provided in Section 2d of this | ||
Act; | ||
5. The amount of tax due; | ||
5-5. The signature of the taxpayer; and | ||
6. Such other reasonable information as the Department | ||
may
require. | ||
If a taxpayer fails to sign a return within 30 days after | ||
the proper notice
and demand for signature by the Department, | ||
the return shall be considered
valid and any amount shown to be | ||
due on the return shall be deemed assessed. | ||
Beginning October 1, 1993, a taxpayer who has an average | ||
monthly tax
liability of $150,000 or more shall make all | ||
payments required by rules of
the Department by electronic | ||
funds transfer. Beginning October 1, 1994, a
taxpayer who has | ||
an average monthly tax liability of $100,000 or more shall
make | ||
all payments required by rules of the Department by electronic | ||
funds
transfer. Beginning October 1, 1995, a taxpayer who has | ||
an average monthly
tax liability of $50,000 or more shall make | ||
all payments required by rules
of the Department by electronic | ||
funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||
an annual tax liability of
$200,000 or more shall make all |
payments required by rules of the Department by
electronic | ||
funds transfer. The term "annual tax liability" shall be the | ||
sum of
the taxpayer's liabilities under this Act, and under all | ||
other State and local
occupation and use tax laws administered | ||
by the Department, for the immediately
preceding calendar year.
| ||
The term "average monthly tax
liability" means the sum of the | ||
taxpayer's liabilities under this Act, and
under all other | ||
State and local occupation and use tax laws administered by the
| ||
Department, for the immediately preceding calendar year | ||
divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||
a tax liability in the
amount set forth in subsection (b) of | ||
Section 2505-210 of the Department of
Revenue Law shall make | ||
all payments required by rules of the Department by
electronic | ||
funds transfer. | ||
Before August 1 of each year beginning in 1993, the | ||
Department shall
notify all taxpayers required to make payments | ||
by electronic funds transfer.
All taxpayers required to make | ||
payments by electronic funds transfer shall
make those payments | ||
for a minimum of one year beginning on October 1. | ||
Any taxpayer not required to make payments by electronic | ||
funds transfer
may make payments by electronic funds transfer | ||
with the permission of the
Department. | ||
All taxpayers required to make payment by electronic funds | ||
transfer and
any taxpayers authorized to voluntarily make | ||
payments by electronic funds
transfer shall make those payments | ||
in the manner authorized by the Department. |
The Department shall adopt such rules as are necessary to | ||
effectuate a
program of electronic funds transfer and the | ||
requirements of this Section. | ||
If the serviceman is otherwise required to file a monthly | ||
return and
if the serviceman's average monthly tax liability to | ||
the Department
does not exceed $200, the Department may | ||
authorize his returns to be
filed on a quarter annual basis, | ||
with the return for January, February
and March of a given year | ||
being due by April 20 of such year; with the
return for April, | ||
May and June of a given year being due by July 20 of
such year; | ||
with the return for July, August and September of a given
year | ||
being due by October 20 of such year, and with the return for
| ||
October, November and December of a given year being due by | ||
January 20
of the following year. | ||
If the serviceman is otherwise required to file a monthly | ||
or quarterly
return and if the serviceman's average monthly tax | ||
liability to the Department
does not exceed $50, the Department | ||
may authorize his returns to be
filed on an annual basis, with | ||
the return for a given year being due by
January 20 of the | ||
following year. | ||
Such quarter annual and annual returns, as to form and | ||
substance,
shall be subject to the same requirements as monthly | ||
returns. | ||
Notwithstanding any other provision in this Act concerning | ||
the time
within which a serviceman may file his return, in the | ||
case of any
serviceman who ceases to engage in a kind of |
business which makes him
responsible for filing returns under | ||
this Act, such serviceman shall
file a final return under this | ||
Act with the Department not more than 1
month after | ||
discontinuing such business. | ||
Where a serviceman collects the tax with respect to the | ||
selling price of
property which he sells and the purchaser | ||
thereafter returns such
property and the serviceman refunds the | ||
selling price thereof to the
purchaser, such serviceman shall | ||
also refund, to the purchaser, the tax
so collected from the | ||
purchaser. When filing his return for the period
in which he | ||
refunds such tax to the purchaser, the serviceman may deduct
| ||
the amount of the tax so refunded by him to the purchaser from | ||
any other
Service Use Tax, Service Occupation Tax, retailers' | ||
occupation tax or
use tax which such serviceman may be required | ||
to pay or remit to the
Department, as shown by such return, | ||
provided that the amount of the tax
to be deducted shall | ||
previously have been remitted to the Department by
such | ||
serviceman. If the serviceman shall not previously have | ||
remitted
the amount of such tax to the Department, he shall be | ||
entitled to no
deduction hereunder upon refunding such tax to | ||
the purchaser. | ||
Any serviceman filing a return hereunder shall also include | ||
the total
tax upon the selling price of tangible personal | ||
property purchased for use
by him as an incident to a sale of | ||
service, and such serviceman shall remit
the amount of such tax | ||
to the Department when filing such return. |
If experience indicates such action to be practicable, the | ||
Department
may prescribe and furnish a combination or joint | ||
return which will
enable servicemen, who are required to file | ||
returns hereunder and also
under the Service Occupation Tax | ||
Act, to furnish all the return
information required by both | ||
Acts on the one form. | ||
Where the serviceman has more than one business registered | ||
with the
Department under separate registration hereunder, | ||
such serviceman shall
not file each return that is due as a | ||
single return covering all such
registered businesses, but | ||
shall file separate returns for each such
registered business. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the State and Local Tax Reform Fund, a special fund in | ||
the State Treasury,
the net revenue realized for the preceding | ||
month from the 1% tax on sales
of food for human consumption | ||
which is to be consumed off the premises
where it is sold | ||
(other than alcoholic beverages, soft drinks and food
which has | ||
been prepared for immediate consumption) and prescription and
| ||
nonprescription medicines, drugs, medical appliances and | ||
insulin, urine
testing materials, syringes and needles used by | ||
diabetics. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the State and Local Sales Tax Reform Fund 20% of the | ||
net revenue realized
for the preceding month from the 6.25% | ||
general rate on transfers of
tangible personal property, other | ||
than tangible personal property which is
purchased outside |
Illinois at retail from a retailer and which is titled or
| ||
registered by an agency of this State's government. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
State and Local Sales Tax Reform Fund 100% of the | ||
net revenue realized for the
preceding
month from the 1.25% | ||
rate on the selling price of motor fuel and gasohol. | ||
Beginning October 1, 2009, each month the Department shall | ||
pay into the Capital Projects Fund an amount that is equal to | ||
an amount estimated by the Department to represent 80% of the | ||
net revenue realized for the preceding month from the sale of | ||
candy, grooming and hygiene products, and soft drinks that had | ||
been taxed at a rate of 1% prior to September 1, 2009 but that | ||
is now taxed at 6.25%. | ||
Of the remainder of the moneys received by the Department | ||
pursuant
to this Act, (a) 1.75% thereof shall be paid into the | ||
Build
Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||
and after July 1,
1989, 3.8% thereof shall be paid into the | ||
Build Illinois Fund; provided,
however, that if in any fiscal | ||
year the sum of (1) the aggregate of 2.2% or
3.8%, as the case | ||
may be, of the moneys received by the Department and
required | ||
to be paid into the Build Illinois Fund pursuant to Section 3 | ||
of
the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||
Act, Section 9
of the Service Use Tax Act, and Section 9 of the | ||
Service Occupation Tax
Act, such Acts being hereinafter called | ||
the "Tax Acts" and such aggregate
of 2.2% or 3.8%, as the case | ||
may be, of moneys being hereinafter called the
"Tax Act |
Amount", and (2) the amount transferred to the Build Illinois | ||
Fund
from the State and Local Sales Tax Reform Fund shall be | ||
less than the
Annual Specified Amount (as defined in Section 3 | ||
of the Retailers'
Occupation Tax Act), an amount equal to the | ||
difference shall be immediately
paid into the Build Illinois | ||
Fund from other moneys received by the
Department pursuant to | ||
the Tax Acts; and further provided, that if on the
last | ||
business day of any month the sum of (1) the Tax Act Amount | ||
required
to be deposited into the Build Illinois Bond Account | ||
in the Build Illinois
Fund during such month and (2) the amount | ||
transferred during such month to
the Build Illinois Fund from | ||
the State and Local Sales Tax Reform Fund
shall have been less | ||
than 1/12 of the Annual Specified Amount, an amount
equal to | ||
the difference shall be immediately paid into the Build | ||
Illinois
Fund from other moneys received by the Department | ||
pursuant to the Tax Acts;
and, further provided, that in no | ||
event shall the payments required under
the preceding proviso | ||
result in aggregate payments into the Build Illinois
Fund | ||
pursuant to this clause (b) for any fiscal year in excess of | ||
the
greater of (i) the Tax Act Amount or (ii) the Annual | ||
Specified Amount for
such fiscal year; and, further provided, | ||
that the amounts payable into the
Build Illinois Fund under | ||
this clause (b) shall be payable only until such
time as the | ||
aggregate amount on deposit under each trust indenture securing
| ||
Bonds issued and outstanding pursuant to the Build Illinois | ||
Bond Act is
sufficient, taking into account any future |
investment income, to fully
provide, in accordance with such | ||
indenture, for the defeasance of or the
payment of the | ||
principal of, premium, if any, and interest on the Bonds
| ||
secured by such indenture and on any Bonds expected to be | ||
issued thereafter
and all fees and costs payable with respect | ||
thereto, all as certified by
the Director of the
Bureau of the | ||
Budget (now Governor's Office of Management and Budget). If
on | ||
the last business day of
any month in which Bonds are | ||
outstanding pursuant to the Build Illinois
Bond Act, the | ||
aggregate of the moneys deposited in the Build Illinois Bond
| ||
Account in the Build Illinois Fund in such month shall be less | ||
than the
amount required to be transferred in such month from | ||
the Build Illinois
Bond Account to the Build Illinois Bond | ||
Retirement and Interest Fund
pursuant to Section 13 of the | ||
Build Illinois Bond Act, an amount equal to
such deficiency | ||
shall be immediately paid from other moneys received by the
| ||
Department pursuant to the Tax Acts to the Build Illinois Fund; | ||
provided,
however, that any amounts paid to the Build Illinois | ||
Fund in any fiscal
year pursuant to this sentence shall be | ||
deemed to constitute payments
pursuant to clause (b) of the | ||
preceding sentence and shall reduce the
amount otherwise | ||
payable for such fiscal year pursuant to clause (b) of the
| ||
preceding sentence. The moneys received by the Department | ||
pursuant to this
Act and required to be deposited into the | ||
Build Illinois Fund are subject
to the pledge, claim and charge | ||
set forth in Section 12 of the Build Illinois
Bond Act. |
Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||
as provided in
the preceding paragraph or in any amendment | |||||||||||||||||||||||||||||||||||||||||
thereto hereafter enacted, the
following specified monthly | |||||||||||||||||||||||||||||||||||||||||
installment of the amount requested in the
certificate of the | |||||||||||||||||||||||||||||||||||||||||
Chairman of the Metropolitan Pier and Exposition
Authority | |||||||||||||||||||||||||||||||||||||||||
provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||
in
excess of the sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||
deposited in the
aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||
9 of the Service Occupation Tax Act, and
Section 3 of the | |||||||||||||||||||||||||||||||||||||||||
Retailers' Occupation Tax Act into the McCormick Place
| |||||||||||||||||||||||||||||||||||||||||
Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||
Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||
year thereafter,
one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||
certificate of the Chairman of
the Metropolitan Pier and | ||||||||||||||||||||||||||||||||
Exposition Authority for that fiscal year, less
the amount | ||||||||||||||||||||||||||||||||
deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||
the
State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||
(g) of Section 13
of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||
Authority Act, plus cumulative
deficiencies in the deposits | ||||||||||||||||||||||||||||||||
required under this Section for previous
months and years, | ||||||||||||||||||||||||||||||||
shall be deposited into the McCormick Place Expansion
Project | ||||||||||||||||||||||||||||||||
Fund, until the full amount requested for the fiscal year, but | ||||||||||||||||||||||||||||||||
not
in excess of the amount specified above as "Total Deposit", | ||||||||||||||||||||||||||||||||
has been deposited. | ||||||||||||||||||||||||||||||||
Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||
and the
McCormick Place Expansion Project Fund
pursuant to the | ||||||||||||||||||||||||||||||||
preceding paragraphs or in any amendments thereto hereafter
|
enacted, beginning July 1, 1993, the Department shall each | ||
month pay into the
Illinois Tax Increment Fund 0.27% of 80% of | ||
the net revenue realized for the
preceding month from the 6.25% | ||
general rate on the selling price of tangible
personal | ||
property. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
and the
McCormick Place Expansion Project Fund pursuant to the | ||
preceding paragraphs or
in any
amendments thereto hereafter | ||
enacted, beginning with the receipt of the first
report of | ||
taxes paid by an eligible business and continuing for a 25-year
| ||
period, the Department shall each month pay into the Energy | ||
Infrastructure
Fund 80% of the net revenue realized from the | ||
6.25% general rate on the
selling price of Illinois-mined coal | ||
that was sold to an eligible business.
For purposes of this | ||
paragraph, the term "eligible business" means a new
electric | ||
generating facility certified pursuant to Section 605-332 of | ||
the
Department of Commerce and
Economic Opportunity Law of the | ||
Civil Administrative
Code of Illinois. | ||
All remaining moneys received by the Department pursuant to | ||
this
Act shall be paid into the General Revenue Fund of the | ||
State Treasury. | ||
As soon as possible after the first day of each month, upon | ||
certification
of the Department of Revenue, the Comptroller | ||
shall order transferred and
the Treasurer shall transfer from | ||
the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||
equal to 1.7% of 80% of the net revenue realized
under this Act |
for the second preceding month.
Beginning April 1, 2000, this | ||
transfer is no longer required
and shall not be made. | ||
Net revenue realized for a month shall be the revenue | ||
collected by the State
pursuant to this Act, less the amount | ||
paid out during that month as refunds
to taxpayers for | ||
overpayment of liability. | ||
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | ||
eff. 5-27-10.)
| ||
Section 27. The Service Occupation Tax Act is amended by | ||
changing Section 9 as follows:
| ||
(35 ILCS 115/9) (from Ch. 120, par. 439.109) | ||
Sec. 9. Each serviceman required or authorized to collect | ||
the tax
herein imposed shall pay to the Department the amount | ||
of such tax at the
time when he is required to file his return | ||
for the period during which
such tax was collectible, less a | ||
discount of 2.1% prior to
January 1, 1990, and 1.75% on and | ||
after January 1, 1990, or
$5 per calendar year, whichever is | ||
greater, which is allowed to reimburse
the serviceman for | ||
expenses incurred in collecting the tax, keeping
records, | ||
preparing and filing returns, remitting the tax and supplying | ||
data
to the Department on request. The Department may disallow | ||
the discount for servicemen whose certificate of registration | ||
is revoked at the time the return is filed, but only if the | ||
Department's decision to revoke the certificate of |
registration has become final. | ||
Where such tangible personal property is sold under a | ||
conditional
sales contract, or under any other form of sale | ||
wherein the payment of
the principal sum, or a part thereof, is | ||
extended beyond the close of
the period for which the return is | ||
filed, the serviceman, in collecting
the tax may collect, for | ||
each tax return period, only the tax applicable
to the part of | ||
the selling price actually received during such tax return
| ||
period. | ||
Except as provided hereinafter in this Section, on or | ||
before the twentieth
day of each calendar month, such | ||
serviceman shall file a
return for the preceding calendar month | ||
in accordance with reasonable
rules and regulations to be | ||
promulgated by the Department of Revenue.
Such return shall be | ||
filed on a form prescribed by the Department and
shall contain | ||
such information as the Department may reasonably require. | ||
The Department may require returns to be filed on a | ||
quarterly basis.
If so required, a return for each calendar | ||
quarter shall be filed on or
before the twentieth day of the | ||
calendar month following the end of such
calendar quarter. The | ||
taxpayer shall also file a return with the
Department for each | ||
of the first two months of each calendar quarter, on or
before | ||
the twentieth day of the following calendar month, stating: | ||
1. The name of the seller; | ||
2. The address of the principal place of business from | ||
which he engages
in business as a serviceman in this State; |
3. The total amount of taxable receipts received by him | ||
during the
preceding calendar month, including receipts | ||
from charge and time sales,
but less all deductions allowed | ||
by law; | ||
4. The amount of credit provided in Section 2d of this | ||
Act; | ||
5. The amount of tax due; | ||
5-5. The signature of the taxpayer; and | ||
6. Such other reasonable information as the Department | ||
may
require. | ||
If a taxpayer fails to sign a return within 30 days after | ||
the proper notice
and demand for signature by the Department, | ||
the return shall be considered
valid and any amount shown to be | ||
due on the return shall be deemed assessed. | ||
Prior to October 1, 2003, and on and after September 1, | ||
2004 a serviceman may accept a Manufacturer's
Purchase Credit | ||
certification
from a purchaser in satisfaction
of Service Use | ||
Tax as provided in Section 3-70 of the
Service Use Tax Act if | ||
the purchaser provides
the
appropriate
documentation as | ||
required by Section 3-70 of the Service Use Tax Act.
A | ||
Manufacturer's Purchase Credit certification, accepted prior | ||
to October 1,
2003 or on or after September 1, 2004 by a | ||
serviceman as
provided in Section 3-70 of the Service Use Tax | ||
Act, may be used by that
serviceman to satisfy Service | ||
Occupation Tax liability in the amount claimed in
the | ||
certification, not to exceed 6.25% of the receipts subject to |
tax from a
qualifying purchase. A Manufacturer's Purchase | ||
Credit reported on any
original or amended return
filed under
| ||
this Act after October 20, 2003 for reporting periods prior to | ||
September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||
Credit reported on annual returns due on or after January 1, | ||
2005 will be disallowed for periods prior to September 1, 2004.
| ||
No Manufacturer's
Purchase Credit may be used after September | ||
30, 2003 through August 31, 2004 to
satisfy any
tax liability | ||
imposed under this Act, including any audit liability. | ||
If the serviceman's average monthly tax liability to
the | ||
Department does not exceed $200, the Department may authorize | ||
his
returns to be filed on a quarter annual basis, with the | ||
return for
January, February and March of a given year being | ||
due by April 20 of
such year; with the return for April, May | ||
and June of a given year being
due by July 20 of such year; with | ||
the return for July, August and
September of a given year being | ||
due by October 20 of such year, and with
the return for | ||
October, November and December of a given year being due
by | ||
January 20 of the following year. | ||
If the serviceman's average monthly tax liability to
the | ||
Department does not exceed $50, the Department may authorize | ||
his
returns to be filed on an annual basis, with the return for | ||
a given year
being due by January 20 of the following year. | ||
Such quarter annual and annual returns, as to form and | ||
substance,
shall be subject to the same requirements as monthly | ||
returns. |
Notwithstanding any other provision in this Act concerning | ||
the time within
which a serviceman may file his return, in the | ||
case of any serviceman who
ceases to engage in a kind of | ||
business which makes him responsible for filing
returns under | ||
this Act, such serviceman shall file a final return under this
| ||
Act with the Department not more than 1 month after | ||
discontinuing such
business. | ||
Beginning October 1, 1993, a taxpayer who has an average | ||
monthly tax
liability of $150,000 or more shall make all | ||
payments required by rules of the
Department by electronic | ||
funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||
an average monthly tax liability of $100,000 or more shall make | ||
all
payments required by rules of the Department by electronic | ||
funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||
an average monthly tax liability
of $50,000 or more shall make | ||
all payments required by rules of the Department
by electronic | ||
funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||
an annual tax liability of $200,000 or more shall make all | ||
payments required by
rules of the Department by electronic | ||
funds transfer. The term "annual tax
liability" shall be the | ||
sum of the taxpayer's liabilities under this Act, and
under all | ||
other State and local occupation and use tax laws administered | ||
by the
Department, for the immediately preceding calendar year. | ||
The term "average
monthly tax liability" means
the sum of the | ||
taxpayer's liabilities under this Act, and under all other | ||
State
and local occupation and use tax laws administered by the |
Department, for the
immediately preceding calendar year | ||
divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||
a tax liability in the
amount set forth in subsection (b) of | ||
Section 2505-210 of the Department of
Revenue Law shall make | ||
all payments required by rules of the Department by
electronic | ||
funds transfer. | ||
Before August 1 of each year beginning in 1993, the | ||
Department shall
notify all taxpayers required to make payments | ||
by electronic funds transfer.
All taxpayers required to make | ||
payments by electronic funds transfer shall make
those payments | ||
for a minimum of one year beginning on October 1. | ||
Any taxpayer not required to make payments by electronic | ||
funds transfer may
make payments by electronic funds transfer | ||
with the
permission of the Department. | ||
All taxpayers required to make payment by electronic funds | ||
transfer and
any taxpayers authorized to voluntarily make | ||
payments by electronic funds
transfer shall make those payments | ||
in the manner authorized by the Department. | ||
The Department shall adopt such rules as are necessary to | ||
effectuate a
program of electronic funds transfer and the | ||
requirements of this Section. | ||
Where a serviceman collects the tax with respect to the | ||
selling price of
tangible personal property which he sells and | ||
the purchaser thereafter returns
such tangible personal | ||
property and the serviceman refunds the
selling price thereof | ||
to the purchaser, such serviceman shall also refund,
to the |
purchaser, the tax so collected from the purchaser. When
filing | ||
his return for the period in which he refunds such tax to the
| ||
purchaser, the serviceman may deduct the amount of the tax so | ||
refunded by
him to the purchaser from any other Service | ||
Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or | ||
Use Tax which such serviceman may be
required to pay or remit | ||
to the Department, as shown by such return,
provided that the | ||
amount of the tax to be deducted shall previously have
been | ||
remitted to the Department by such serviceman. If the | ||
serviceman shall
not previously have remitted the amount of | ||
such tax to the Department,
he shall be entitled to no | ||
deduction hereunder upon refunding such tax
to the purchaser. | ||
If experience indicates such action to be practicable, the | ||
Department
may prescribe and furnish a combination or joint | ||
return which will
enable servicemen, who are required to file | ||
returns
hereunder and also under the Retailers' Occupation Tax | ||
Act, the Use
Tax Act or the Service Use Tax Act, to furnish all | ||
the return
information required by all said Acts on the one | ||
form. | ||
Where the serviceman has more than one business
registered | ||
with the Department under separate registrations hereunder,
| ||
such serviceman shall file separate returns for each
registered | ||
business. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the Local Government Tax Fund the revenue realized for | ||
the
preceding month from the 1% tax on sales of food for human |
consumption
which is to be consumed off the premises where it | ||
is sold (other than
alcoholic beverages, soft drinks and food | ||
which has been prepared for
immediate consumption) and | ||
prescription and nonprescription medicines,
drugs, medical | ||
appliances and insulin, urine testing materials, syringes
and | ||
needles used by diabetics. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the County and Mass Transit District Fund 4% of the | ||
revenue realized
for the preceding month from the 6.25% general | ||
rate. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
County and Mass Transit District Fund 20% of the | ||
net revenue realized for the
preceding month from the 1.25% | ||
rate on the selling price of motor fuel and
gasohol. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the Local Government Tax Fund 16% of the revenue | ||
realized for the
preceding month from the 6.25% general rate on | ||
transfers of
tangible personal property. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
Local Government Tax Fund 80% of the net revenue | ||
realized for the preceding
month from the 1.25% rate on the | ||
selling price of motor fuel and gasohol. | ||
Beginning October 1, 2009, each month the Department shall | ||
pay into the Capital Projects Fund an amount that is equal to | ||
an amount estimated by the Department to represent 80% of the | ||
net revenue realized for the preceding month from the sale of |
candy, grooming and hygiene products, and soft drinks that had | ||
been taxed at a rate of 1% prior to September 1, 2009 but that | ||
is now taxed at 6.25%. | ||
Of the remainder of the moneys received by the Department | ||
pursuant to
this Act, (a) 1.75% thereof shall be paid into the | ||
Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on | ||
and after July 1, 1989, 3.8% thereof
shall be paid into the | ||
Build Illinois Fund; provided, however, that if in
any fiscal | ||
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
| ||
may be, of the moneys received by the Department and required | ||
to be paid
into the Build Illinois Fund pursuant to Section 3 | ||
of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax | ||
Act, Section 9 of the Service
Use Tax Act, and Section 9 of the | ||
Service Occupation Tax Act, such Acts
being hereinafter called | ||
the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case | ||
may be, of moneys being hereinafter called the "Tax Act
| ||
Amount", and (2) the amount transferred to the Build Illinois | ||
Fund from the
State and Local Sales Tax Reform Fund shall be | ||
less than the Annual
Specified Amount (as defined in Section 3 | ||
of the Retailers' Occupation Tax
Act), an amount equal to the | ||
difference shall be immediately paid into the
Build Illinois | ||
Fund from other moneys received by the Department pursuant
to | ||
the Tax Acts; and further provided, that if on the last | ||
business day of
any month the sum of (1) the Tax Act Amount | ||
required to be deposited into
the Build Illinois Account in the | ||
Build Illinois Fund during such month and
(2) the amount |
transferred during such month to the Build Illinois Fund
from | ||
the State and Local Sales Tax Reform Fund shall have been less | ||
than
1/12 of the Annual Specified Amount, an amount equal to | ||
the difference
shall be immediately paid into the Build | ||
Illinois Fund from other moneys
received by the Department | ||
pursuant to the Tax Acts; and, further provided,
that in no | ||
event shall the payments required under the preceding proviso
| ||
result in aggregate payments into the Build Illinois Fund | ||
pursuant to this
clause (b) for any fiscal year in excess of | ||
the greater of (i) the Tax Act
Amount or (ii) the Annual | ||
Specified Amount for such fiscal year; and,
further provided, | ||
that the amounts payable into the Build Illinois Fund
under | ||
this clause (b) shall be payable only until such time as the
| ||
aggregate amount on deposit under each trust indenture securing | ||
Bonds
issued and outstanding pursuant to the Build Illinois | ||
Bond Act is
sufficient, taking into account any future | ||
investment income, to fully
provide, in accordance with such | ||
indenture, for the defeasance of or the
payment of the | ||
principal of, premium, if any, and interest on the Bonds
| ||
secured by such indenture and on any Bonds expected to be | ||
issued thereafter
and all fees and costs payable with respect | ||
thereto, all as certified by
the Director of the
Bureau of the | ||
Budget (now Governor's Office of Management and Budget). If
on | ||
the last business day of
any month in which Bonds are | ||
outstanding pursuant to the Build Illinois
Bond Act, the | ||
aggregate of the moneys deposited
in the Build Illinois Bond |
Account in the Build Illinois Fund in such month
shall be less | ||
than the amount required to be transferred in such month from
| ||
the Build Illinois Bond Account to the Build Illinois Bond | ||
Retirement and
Interest Fund pursuant to Section 13 of the | ||
Build Illinois Bond Act, an
amount equal to such deficiency | ||
shall be immediately paid
from other moneys received by the | ||
Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||
provided, however, that any amounts paid to the
Build Illinois | ||
Fund in any fiscal year pursuant to this sentence shall be
| ||
deemed to constitute payments pursuant to clause (b) of the | ||
preceding
sentence and shall reduce the amount otherwise | ||
payable for such fiscal year
pursuant to clause (b) of the | ||
preceding sentence. The moneys received by
the Department | ||
pursuant to this Act and required to be deposited into the
| ||
Build Illinois Fund are subject to the pledge, claim and charge | ||
set forth
in Section 12 of the Build Illinois Bond Act. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
as provided in
the preceding paragraph or in any amendment | ||
thereto hereafter enacted, the
following specified monthly | ||
installment of the amount requested in the
certificate of the | ||
Chairman of the Metropolitan Pier and Exposition
Authority | ||
provided under Section 8.25f of the State Finance Act, but not | ||
in
excess of the sums designated as "Total Deposit", shall be | ||
deposited in the
aggregate from collections under Section 9 of | ||
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||
9 of the Service Occupation Tax Act, and
Section 3 of the |
Retailers' Occupation Tax Act into the McCormick Place
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Beginning July 20, 1993 and in each month of each fiscal | ||
year thereafter,
one-eighth of the amount requested in the | ||
certificate of the Chairman of
the Metropolitan Pier and | ||
Exposition Authority for that fiscal year, less
the amount | ||
deposited into the McCormick Place Expansion Project Fund by | ||
the
State Treasurer in the respective month under subsection | ||
(g) of Section 13
of the Metropolitan Pier and Exposition | ||
Authority Act, plus cumulative
deficiencies in the deposits | ||
required under this Section for previous
months and years, | ||
shall be deposited into the McCormick Place Expansion
Project | ||
Fund, until the full amount requested for the fiscal year, but | ||
not
in excess of the amount specified above as "Total Deposit", | ||
has been deposited. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
and the
McCormick
Place Expansion Project Fund
pursuant to the | ||
preceding paragraphs or in any amendments thereto hereafter
| ||
enacted, beginning July 1, 1993, the Department shall each | ||
month pay into the
Illinois Tax Increment Fund 0.27% of 80% of | ||
the net revenue realized for the
preceding month from the 6.25% | ||
general rate on the selling price of tangible
personal | ||
property. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
and the
McCormick Place Expansion Project Fund pursuant to the | ||
preceding paragraphs or in any
amendments thereto hereafter | ||
enacted, beginning with the receipt of the first
report of | ||
taxes paid by an eligible business and continuing for a 25-year
|
period, the Department shall each month pay into the Energy | ||
Infrastructure
Fund 80% of the net revenue realized from the | ||
6.25% general rate on the
selling price of Illinois-mined coal | ||
that was sold to an eligible business.
For purposes of this | ||
paragraph, the term "eligible business" means a new
electric | ||
generating facility certified pursuant to Section 605-332 of | ||
the
Department of Commerce and
Economic Opportunity Law of the | ||
Civil Administrative
Code of Illinois. | ||
Remaining moneys received by the Department pursuant to | ||
this
Act shall be paid into the General Revenue Fund of the | ||
State Treasury. | ||
The Department may, upon separate written notice to a | ||
taxpayer,
require the taxpayer to prepare and file with the | ||
Department on a form
prescribed by the Department within not | ||
less than 60 days after receipt
of the notice an annual | ||
information return for the tax year specified in
the notice. | ||
Such annual return to the Department shall include a
statement | ||
of gross receipts as shown by the taxpayer's last Federal | ||
income
tax return. If the total receipts of the business as | ||
reported in the
Federal income tax return do not agree with the | ||
gross receipts reported to
the Department of Revenue for the | ||
same period, the taxpayer shall attach
to his annual return a | ||
schedule showing a reconciliation of the 2
amounts and the | ||
reasons for the difference. The taxpayer's annual
return to the | ||
Department shall also disclose the cost of goods sold by
the | ||
taxpayer during the year covered by such return, opening and |
closing
inventories of such goods for such year, cost of goods | ||
used from stock
or taken from stock and given away by the | ||
taxpayer during such year, pay
roll information of the | ||
taxpayer's business during such year and any
additional | ||
reasonable information which the Department deems would be
| ||
helpful in determining the accuracy of the monthly, quarterly | ||
or annual
returns filed by such taxpayer as hereinbefore | ||
provided for in this
Section. | ||
If the annual information return required by this Section | ||
is not
filed when and as required, the taxpayer shall be liable | ||
as follows: | ||
(i) Until January 1, 1994, the taxpayer shall be liable
| ||
for a penalty equal to 1/6 of 1% of the tax due from such | ||
taxpayer
under this Act during the period to be covered by | ||
the annual return
for each month or fraction of a month | ||
until such return is filed as
required, the penalty to be | ||
assessed and collected in the same manner
as any other | ||
penalty provided for in this Act. | ||
(ii) On and after January 1, 1994, the taxpayer shall | ||
be liable for a
penalty as described in Section 3-4 of the | ||
Uniform Penalty and Interest Act. | ||
The chief executive officer, proprietor, owner or highest | ||
ranking
manager shall sign the annual return to certify the | ||
accuracy of the
information contained therein. Any person who | ||
willfully signs the
annual return containing false or | ||
inaccurate information shall be guilty
of perjury and punished |
accordingly. The annual return form prescribed
by the | ||
Department shall include a warning that the person signing the
| ||
return may be liable for perjury. | ||
The foregoing portion of this Section concerning the filing | ||
of an
annual information return shall not apply to a serviceman | ||
who is not
required to file an income tax return with the | ||
United States Government. | ||
As soon as possible after the first day of each month, upon | ||
certification
of the Department of Revenue, the Comptroller | ||
shall order transferred and
the Treasurer shall transfer from | ||
the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||
equal to 1.7% of 80% of the net revenue realized
under this Act | ||
for the second preceding month.
Beginning April 1, 2000, this | ||
transfer is no longer required
and shall not be made. | ||
Net revenue realized for a month shall be the revenue | ||
collected by the State
pursuant to this Act, less the amount | ||
paid out during that month as
refunds to taxpayers for | ||
overpayment of liability. | ||
For greater simplicity of administration, it shall be | ||
permissible for
manufacturers, importers and wholesalers whose | ||
products are sold by numerous
servicemen in Illinois, and who | ||
wish to do so, to
assume the responsibility for accounting and | ||
paying to the Department
all tax accruing under this Act with | ||
respect to such sales, if the
servicemen who are affected do | ||
not make written objection to the
Department to this | ||
arrangement. |
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | ||
eff. 5-27-10.)
| ||
Section 30. The Retailers' Occupation Tax Act is amended by | ||
changing Sections 2a and 3 as follows:
| ||
(35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||
Sec. 2a. It is unlawful for any person to engage in the | ||
business of
selling tangible personal property at retail in | ||
this State without a
certificate of registration from the | ||
Department. Application
for a certificate of registration | ||
shall be made to the Department upon
forms furnished by it. | ||
Each such application shall be signed and verified
and shall | ||
state: (1) the name and social security number of the
| ||
applicant; (2) the address of his principal place
of business; | ||
(3) the address of the principal place of business from which
| ||
he engages in the business of selling tangible personal | ||
property at retail
in this State and the addresses of all other | ||
places of business, if any
(enumerating such addresses, if any, | ||
in a separate list attached to and
made a part of the | ||
application), from which he engages in the business of
selling | ||
tangible personal property at retail in this State; (4)
the
| ||
name and address of the person or persons who will be | ||
responsible for
filing returns and payment of taxes due under | ||
this Act; (5) in the
case of
a corporation, the name, title, | ||
and social security number of
each corporate officer; (6) in |
the case of a limited liability
company, the
name, social | ||
security number, and FEIN number of
each
manager and member; | ||
and (7) such other information
as the Department may reasonably | ||
require. The application shall contain
an acceptance of | ||
responsibility signed by the person or persons who will be
| ||
responsible for filing returns and payment of the taxes due | ||
under this
Act. If the applicant will sell tangible personal | ||
property at retail
through vending machines, his application to | ||
register shall indicate the
number of vending machines to be so | ||
operated. If requested by the Department at any time, that | ||
person shall verify the total number of vending machines he or | ||
she uses in his or her business of selling tangible personal | ||
property at retail. | ||
The Department may deny a certificate of registration to | ||
any applicant
if a person who is named as the owner, a any | ||
partner, a any manager or member of a limited liability
| ||
company, or a corporate officer of the applicant on the | ||
application for the certificate of registration , is or
has been | ||
named as the owner, a partner, a manager or member of a limited
| ||
liability company, or a corporate officer, on the application | ||
for the certificate of registration of another retailer
that is | ||
in default for moneys due under this Act or any other tax or | ||
fee Act administered by the Department . For purposes of this | ||
paragraph only, in determining whether a person is in default | ||
for moneys due, the Department shall include only amounts | ||
established as a final liability within the 20 years prior to |
the date of the Department's notice of denial of a certificate | ||
of registration. | ||
The Department may require an applicant for a certificate | ||
of registration hereunder to, at
the time of filing such | ||
application, furnish a bond from a surety company
authorized to | ||
do business in the State of Illinois, or an irrevocable
bank | ||
letter of credit or a bond signed by 2
personal sureties who | ||
have filed, with the Department, sworn statements
disclosing | ||
net assets equal to at least 3 times the amount of the bond to
| ||
be required of such applicant, or a bond secured by an | ||
assignment of a bank
account or certificate of deposit, stocks | ||
or bonds, conditioned upon the
applicant paying to the State of | ||
Illinois all moneys becoming due under
this Act and under any | ||
other State tax law or municipal or county tax
ordinance or | ||
resolution under which the certificate of registration that is
| ||
issued to the applicant under this Act will permit the | ||
applicant to engage
in business without registering separately | ||
under such other law, ordinance
or resolution. In making a | ||
determination as to whether to require a bond or other | ||
security, the Department shall take into consideration whether | ||
the owner, any partner, any manager or member of a limited | ||
liability company, or a corporate officer of the applicant is | ||
or has been the owner, a partner, a manager or member of a | ||
limited liability company, or a corporate officer of another | ||
retailer that is in default for moneys due under this Act or | ||
any other tax or fee Act administered by the Department; and |
whether the owner, any partner, any manager or member of a | ||
limited liability company, or a corporate officer of the | ||
applicant is or has been the owner, a partner, a manager or | ||
member of a limited liability company, or a corporate officer | ||
of another retailer whose certificate of registration has been | ||
revoked within the previous 5 years under this Act or any other | ||
tax or fee Act administered by the Department. If a bond or | ||
other security is required, the Department shall fix the amount | ||
of the bond or other security, taking into consideration the | ||
amount of money expected to become due from the applicant under | ||
this Act and under any other State tax law or municipal or | ||
county tax ordinance or resolution under which the certificate | ||
of registration that is issued to the applicant under this Act | ||
will permit the applicant to engage in business without | ||
registering separately under such other law, ordinance, or | ||
resolution. The amount of security required by
the Department | ||
shall be such as, in its opinion, will protect the State of
| ||
Illinois against failure to pay the amount which may become due | ||
from the
applicant under this Act and under any other State tax | ||
law or municipal or
county tax ordinance or resolution under | ||
which the certificate of
registration that is issued to the | ||
applicant under this Act will permit the
applicant to engage in | ||
business without registering separately under such
other law, | ||
ordinance or resolution, but the amount of the security | ||
required
by the Department shall not exceed three times the | ||
amount of the
applicant's average monthly tax liability, or |
$50,000.00, whichever amount
is lower. | ||
No certificate of registration under this Act shall be | ||
issued by the
Department until the applicant provides the | ||
Department with satisfactory
security, if required, as herein | ||
provided for. | ||
Upon receipt of the application for certificate of | ||
registration in
proper form, and upon approval by the | ||
Department of the security furnished
by the applicant, if | ||
required, the Department shall issue to such applicant a
| ||
certificate of registration which shall permit the person to | ||
whom it is
issued to engage in the business of selling tangible | ||
personal property at
retail in this State. The certificate of | ||
registration shall be
conspicuously displayed at the place of | ||
business which the person so
registered states in his | ||
application to be the principal place of business
from which he | ||
engages in the business of selling tangible personal property
| ||
at retail in this State. | ||
No certificate of registration issued to a taxpayer who | ||
files returns
required by this Act on a monthly basis shall be | ||
valid after the expiration
of 5 years from the date of its | ||
issuance or last renewal. The expiration
date of a | ||
sub-certificate of registration shall be that of the | ||
certificate
of registration to which the sub-certificate | ||
relates. A certificate of
registration shall automatically be | ||
renewed, subject to revocation as
provided by this Act, for an | ||
additional 5 years from the date of its
expiration unless |
otherwise notified by the Department as provided by this
| ||
paragraph. Where a taxpayer to whom a certificate of | ||
registration is
issued under this Act is in default to the | ||
State of Illinois for delinquent
returns or for moneys due
| ||
under this Act or any other State tax law or municipal or | ||
county ordinance
administered or enforced by the Department, | ||
the Department shall, not less
than 120 days before the | ||
expiration date of such certificate of
registration, give | ||
notice to the taxpayer to whom the certificate was
issued of | ||
the account period of the delinquent returns, the amount of
| ||
tax,
penalty and interest due and owing from the
taxpayer, and | ||
that the certificate of registration shall not be
automatically | ||
renewed upon its expiration date unless the taxpayer, on or
| ||
before the date of expiration, has filed and paid the | ||
delinquent returns or
paid the defaulted amount in full. A
| ||
taxpayer to whom such a notice is issued shall be deemed an | ||
applicant for
renewal. The Department shall promulgate | ||
regulations establishing
procedures for taxpayers who file | ||
returns on a monthly basis but desire and
qualify to change to | ||
a quarterly or yearly filing basis and will no longer
be | ||
subject to renewal under this Section, and for taxpayers who | ||
file
returns on a yearly or quarterly basis but who desire or | ||
are required to
change to a monthly filing basis and will be | ||
subject to renewal under
this Section. | ||
The Department may in its discretion approve renewal by an | ||
applicant
who is in default if, at the time of application for |
renewal, the applicant
files all of the delinquent returns or | ||
pays to the Department such
percentage of the defaulted amount | ||
as may be
determined by the Department and agrees in writing to | ||
waive all limitations
upon the Department for collection of the | ||
remaining defaulted amount to the
Department over a period not | ||
to exceed 5 years from the date of renewal of
the certificate; | ||
however, no renewal application submitted by an applicant
who | ||
is in default shall be approved if the immediately preceding | ||
renewal by
the applicant was conditioned upon the installment | ||
payment
agreement described in this Section. The payment | ||
agreement herein provided
for shall be in addition to and not | ||
in lieu of the security that may be required by
this Section of | ||
a taxpayer who is no longer considered a prior continuous
| ||
compliance taxpayer. The execution of the payment agreement as | ||
provided in
this Act shall not toll the accrual of interest at | ||
the statutory rate. | ||
The Department may suspend a certificate of registration if | ||
the Department finds that the person to whom the certificate of | ||
registration has been issued knowingly sold contraband | ||
cigarettes. | ||
A certificate of registration issued under this Act more | ||
than 5 years
before the effective date of this amendatory Act | ||
of 1989 shall expire and
be subject to the renewal provisions | ||
of this Section on the next
anniversary of the date of issuance | ||
of such certificate which occurs more
than 6 months after the | ||
effective date of this amendatory Act of 1989. A
certificate of |
registration issued less than 5 years before the effective
date | ||
of this amendatory Act of 1989 shall expire and be subject to | ||
the
renewal provisions of this Section on the 5th anniversary | ||
of the issuance
of the certificate. | ||
If the person so registered states that he operates other | ||
places of
business from which he engages in the business of | ||
selling tangible personal
property at retail in this State, the | ||
Department shall furnish him with a
sub-certificate of | ||
registration for each such place of business, and the
applicant | ||
shall display the appropriate sub-certificate of registration | ||
at
each such place of business. All sub-certificates of | ||
registration shall
bear the same registration number as that | ||
appearing upon the certificate of
registration to which such | ||
sub-certificates relate. | ||
If the applicant will sell tangible personal property at | ||
retail through
vending machines, the Department shall furnish | ||
him with a sub-certificate
of registration for each such | ||
vending machine, and the applicant shall
display the | ||
appropriate sub-certificate of registration on each such
| ||
vending machine by attaching the sub-certificate of | ||
registration to a
conspicuous part of such vending machine. If | ||
a person who is registered to sell tangible personal property | ||
at retail through vending machines adds an additional vending | ||
machine or additional vending machines to the number of vending | ||
machines he or she uses in his or her business of selling | ||
tangible personal property at retail, he or she shall notify |
the Department, on a form prescribed by the Department, to | ||
request an additional sub-certificate or additional | ||
sub-certificates of registration, as applicable. With each | ||
such request, the applicant shall report the number of | ||
sub-certificates of registration he or she is requesting as | ||
well as the total number of vending machines from which he or | ||
she makes retail sales. | ||
Where the same person engages in 2 or more businesses of | ||
selling
tangible personal property at retail in this State, | ||
which businesses are
substantially different in character or | ||
engaged in under different trade
names or engaged in under | ||
other substantially dissimilar circumstances (so
that it is | ||
more practicable, from an accounting, auditing or bookkeeping
| ||
standpoint, for such businesses to be separately registered), | ||
the
Department may require or permit such person (subject to | ||
the same
requirements concerning the furnishing of security as | ||
those that are
provided for hereinbefore in this Section as to | ||
each application for a
certificate of registration) to apply | ||
for and obtain a separate certificate
of registration for each | ||
such business or for any of such businesses, under
a single | ||
certificate of registration supplemented by related
| ||
sub-certificates of registration. | ||
Any person who is registered under the "Retailers' | ||
Occupation Tax Act"
as of March 8, 1963, and who, during the | ||
3-year period immediately prior to
March 8, 1963, or during a | ||
continuous 3-year period part of which passed
immediately |
before and the remainder of which passes immediately after
| ||
March 8, 1963, has been so registered continuously and who is | ||
determined by
the Department not to have been either delinquent | ||
or deficient in the
payment of tax liability during that period | ||
under this Act or under any
other State tax law or municipal or | ||
county tax ordinance or resolution
under which the certificate | ||
of registration that is issued to the
registrant under this Act | ||
will permit the registrant to engage in business
without | ||
registering separately under such other law, ordinance or
| ||
resolution, shall be considered to be a Prior Continuous | ||
Compliance
taxpayer. Also any taxpayer who has, as verified by | ||
the Department,
faithfully and continuously complied with the | ||
condition of his bond or
other security under the provisions of | ||
this Act for a period of 3
consecutive years shall be | ||
considered to be a Prior Continuous Compliance
taxpayer. | ||
Every Prior Continuous Compliance taxpayer shall be exempt | ||
from all
requirements under this Act concerning the furnishing | ||
of a bond or other security as a
condition precedent to his | ||
being authorized to engage in the business of
selling tangible | ||
personal property at retail in this State. This exemption
shall | ||
continue for each such taxpayer until such time as he may be
| ||
determined by the Department to be delinquent in the filing of | ||
any returns,
or is determined by the Department (either through | ||
the Department's
issuance of a final assessment which has | ||
become final under the Act, or by
the taxpayer's filing of a | ||
return which admits tax that is not paid to be
due) to be |
delinquent or deficient in the paying of any tax under this Act
| ||
or under any other State tax law or municipal or county tax | ||
ordinance or
resolution under which the certificate of | ||
registration that is issued to
the registrant under this Act | ||
will permit the registrant to engage in
business without | ||
registering separately under such other law, ordinance or
| ||
resolution, at which time that taxpayer shall become subject to | ||
all the
financial responsibility requirements of this Act and, | ||
as a condition of
being allowed to continue to engage in the | ||
business of selling tangible
personal property at retail, may | ||
be required to post bond or other
acceptable security with the | ||
Department covering liability which such
taxpayer may | ||
thereafter incur. Any taxpayer who fails to pay an admitted or
| ||
established liability under this Act may also be required to | ||
post bond or
other acceptable security with this Department | ||
guaranteeing the payment of
such admitted or established | ||
liability. | ||
No certificate of registration shall be issued to any | ||
person who is in
default to the State of Illinois for moneys | ||
due under this Act or under any
other State tax law or | ||
municipal or county tax ordinance or resolution
under which the | ||
certificate of registration that is issued to the applicant
| ||
under this Act will permit the applicant to engage in business | ||
without
registering separately under such other law, ordinance | ||
or resolution. | ||
Any person aggrieved by any decision of the Department |
under this
Section may, within 20 days after notice of such | ||
decision, protest and
request a hearing, whereupon the | ||
Department shall give notice to such
person of the time and | ||
place fixed for such hearing and shall hold a
hearing in | ||
conformity with the provisions of this Act and then issue its
| ||
final administrative decision in the matter to such person. In | ||
the absence
of such a protest within 20 days, the Department's | ||
decision shall become
final without any further determination | ||
being made or notice given. | ||
With respect to security other than bonds (upon which the | ||
Department may
sue in the event of a forfeiture), if the | ||
taxpayer fails to pay, when due,
any amount whose payment such | ||
security guarantees, the Department shall,
after such | ||
liability is admitted by the taxpayer or established by the
| ||
Department through the issuance of a final assessment that has | ||
become final
under the law, convert the security which that | ||
taxpayer has furnished into
money for the State, after first | ||
giving the taxpayer at least 10 days'
written notice, by | ||
registered or certified mail, to pay the liability or
forfeit | ||
such security to the Department. If the security consists of | ||
stocks
or bonds or other securities which are listed on a | ||
public exchange, the
Department shall sell such securities | ||
through such public exchange. If
the security consists of an | ||
irrevocable bank letter of credit, the
Department shall convert | ||
the security in the manner provided for in the
Uniform | ||
Commercial Code. If the security consists of a bank certificate |
of
deposit, the Department shall convert the security into | ||
money by demanding
and collecting the amount of such bank | ||
certificate of deposit from the bank
which issued such | ||
certificate. If the security consists of a type of stocks
or | ||
other securities which are not listed on a public exchange, the
| ||
Department shall sell such security to the highest and best | ||
bidder after
giving at least 10 days' notice of the date, time | ||
and place of the intended
sale by publication in the "State | ||
Official Newspaper". If the Department
realizes more than the | ||
amount of such liability from the security, plus the
expenses | ||
incurred by the Department in converting the security into | ||
money,
the Department shall pay such excess to the taxpayer who | ||
furnished such
security, and the balance shall be paid into the | ||
State Treasury. | ||
The Department shall discharge any surety and shall release | ||
and return
any security deposited, assigned, pledged or | ||
otherwise provided to it by
a taxpayer under this Section | ||
within 30 days after: | ||
(1) such taxpayer becomes a Prior Continuous | ||
Compliance taxpayer; or | ||
(2) such taxpayer has ceased to collect receipts on | ||
which he is required
to remit tax to the Department, has | ||
filed a final tax return, and has paid
to the Department an | ||
amount sufficient to discharge his remaining tax
| ||
liability, as determined by the Department, under this Act | ||
and under every
other State tax law or municipal or county |
tax ordinance or resolution
under which the certificate of | ||
registration issued under this Act permits
the registrant | ||
to engage in business without registering separately under
| ||
such other law, ordinance or resolution. The Department | ||
shall make a final
determination of the taxpayer's | ||
outstanding tax liability as expeditiously
as possible | ||
after his final tax return has been filed; if the | ||
Department
cannot make such final determination within 45 | ||
days after receiving the
final tax return, within such | ||
period it shall so notify the taxpayer,
stating its reasons | ||
therefor. | ||
(Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
| ||
(35 ILCS 120/3) (from Ch. 120, par. 442) | ||
Sec. 3. Except as provided in this Section, on or before | ||
the twentieth
day of each calendar month, every person engaged | ||
in the business of
selling tangible personal property at retail | ||
in this State during the
preceding calendar month shall file a | ||
return with the Department, stating: | ||
1. The name of the seller; | ||
2. His residence address and the address of his | ||
principal place of
business and the address of the | ||
principal place of business (if that is
a different | ||
address) from which he engages in the business of selling
| ||
tangible personal property at retail in this State; | ||
3. Total amount of receipts received by him during the |
preceding
calendar month or quarter, as the case may be, | ||
from sales of tangible
personal property, and from services | ||
furnished, by him during such
preceding calendar month or | ||
quarter; | ||
4. Total amount received by him during the preceding | ||
calendar month or
quarter on charge and time sales of | ||
tangible personal property, and from
services furnished, | ||
by him prior to the month or quarter for which the return
| ||
is filed; | ||
5. Deductions allowed by law; | ||
6. Gross receipts which were received by him during the | ||
preceding
calendar month or quarter and upon the basis of | ||
which the tax is imposed; | ||
7. The amount of credit provided in Section 2d of this | ||
Act; | ||
8. The amount of tax due; | ||
9. The signature of the taxpayer; and | ||
10. Such other reasonable information as the | ||
Department may require. | ||
If a taxpayer fails to sign a return within 30 days after | ||
the proper notice
and demand for signature by the Department, | ||
the return shall be considered
valid and any amount shown to be | ||
due on the return shall be deemed assessed. | ||
Each return shall be accompanied by the statement of | ||
prepaid tax issued
pursuant to Section 2e for which credit is | ||
claimed. |
Prior to October 1, 2003, and on and after September 1, | ||
2004 a retailer may accept a Manufacturer's Purchase
Credit
| ||
certification from a purchaser in satisfaction of Use Tax
as | ||
provided in Section 3-85 of the Use Tax Act if the purchaser | ||
provides the
appropriate documentation as required by Section | ||
3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| ||
certification, accepted by a retailer prior to October 1, 2003 | ||
and on and after September 1, 2004 as provided
in
Section 3-85 | ||
of the Use Tax Act, may be used by that retailer to
satisfy | ||
Retailers' Occupation Tax liability in the amount claimed in
| ||
the certification, not to exceed 6.25% of the receipts
subject | ||
to tax from a qualifying purchase. A Manufacturer's Purchase | ||
Credit
reported on any original or amended return
filed under
| ||
this Act after October 20, 2003 for reporting periods prior to | ||
September 1, 2004 shall be disallowed. Manufacturer's | ||
Purchaser Credit reported on annual returns due on or after | ||
January 1, 2005 will be disallowed for periods prior to | ||
September 1, 2004. No Manufacturer's
Purchase Credit may be | ||
used after September 30, 2003 through August 31, 2004 to
| ||
satisfy any
tax liability imposed under this Act, including any | ||
audit liability. | ||
The Department may require returns to be filed on a | ||
quarterly basis.
If so required, a return for each calendar | ||
quarter shall be filed on or
before the twentieth day of the | ||
calendar month following the end of such
calendar quarter. The | ||
taxpayer shall also file a return with the
Department for each |
of the first two months of each calendar quarter, on or
before | ||
the twentieth day of the following calendar month, stating: | ||
1. The name of the seller; | ||
2. The address of the principal place of business from | ||
which he engages
in the business of selling tangible | ||
personal property at retail in this State; | ||
3. The total amount of taxable receipts received by him | ||
during the
preceding calendar month from sales of tangible | ||
personal property by him
during such preceding calendar | ||
month, including receipts from charge and
time sales, but | ||
less all deductions allowed by law; | ||
4. The amount of credit provided in Section 2d of this | ||
Act; | ||
5. The amount of tax due; and | ||
6. Such other reasonable information as the Department | ||
may
require. | ||
Beginning on October 1, 2003, any person who is not a | ||
licensed
distributor, importing distributor, or manufacturer, | ||
as defined in the Liquor
Control Act of 1934, but is engaged in | ||
the business of
selling, at retail, alcoholic liquor
shall file | ||
a statement with the Department of Revenue, in a format
and at | ||
a time prescribed by the Department, showing the total amount | ||
paid for
alcoholic liquor purchased during the preceding month | ||
and such other
information as is reasonably required by the | ||
Department.
The Department may adopt rules to require
that this | ||
statement be filed in an electronic or telephonic format. Such |
rules
may provide for exceptions from the filing requirements | ||
of this paragraph. For
the
purposes of this
paragraph, the term | ||
"alcoholic liquor" shall have the meaning prescribed in the
| ||
Liquor Control Act of 1934. | ||
Beginning on October 1, 2003, every distributor, importing | ||
distributor, and
manufacturer of alcoholic liquor as defined in | ||
the Liquor Control Act of 1934,
shall file a
statement with the | ||
Department of Revenue, no later than the 10th day of the
month | ||
for the
preceding month during which transactions occurred, by | ||
electronic means,
showing the
total amount of gross receipts | ||
from the sale of alcoholic liquor sold or
distributed during
| ||
the preceding month to purchasers; identifying the purchaser to | ||
whom it was
sold or
distributed; the purchaser's tax | ||
registration number; and such other
information
reasonably | ||
required by the Department. A distributor, importing | ||
distributor, or manufacturer of alcoholic liquor must | ||
personally deliver, mail, or provide by electronic means to | ||
each retailer listed on the monthly statement a report | ||
containing a cumulative total of that distributor's, importing | ||
distributor's, or manufacturer's total sales of alcoholic | ||
liquor to that retailer no later than the 10th day of the month | ||
for the preceding month during which the transaction occurred. | ||
The distributor, importing distributor, or manufacturer shall | ||
notify the retailer as to the method by which the distributor, | ||
importing distributor, or manufacturer will provide the sales | ||
information. If the retailer is unable to receive the sales |
information by electronic means, the distributor, importing | ||
distributor, or manufacturer shall furnish the sales | ||
information by personal delivery or by mail. For purposes of | ||
this paragraph, the term "electronic means" includes, but is | ||
not limited to, the use of a secure Internet website, e-mail, | ||
or facsimile. | ||
If a total amount of less than $1 is payable, refundable or | ||
creditable,
such amount shall be disregarded if it is less than | ||
50 cents and shall be
increased to $1 if it is 50 cents or more. | ||
Beginning October 1, 1993,
a taxpayer who has an average | ||
monthly tax liability of $150,000 or more shall
make all | ||
payments required by rules of the
Department by electronic | ||
funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||
an average monthly tax liability of $100,000 or more shall make | ||
all
payments required by rules of the Department by electronic | ||
funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||
an average monthly tax liability
of $50,000 or more shall make | ||
all
payments required by rules of the Department by electronic | ||
funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||
an annual tax liability of
$200,000 or more shall make all | ||
payments required by rules of the Department by
electronic | ||
funds transfer. The term "annual tax liability" shall be the | ||
sum of
the taxpayer's liabilities under this Act, and under all | ||
other State and local
occupation and use tax laws administered | ||
by the Department, for the immediately
preceding calendar year.
| ||
The term "average monthly tax liability" shall be the sum of |
the
taxpayer's liabilities under this
Act, and under all other | ||
State and local occupation and use tax
laws administered by the | ||
Department, for the immediately preceding calendar
year | ||
divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||
a tax liability in the
amount set forth in subsection (b) of | ||
Section 2505-210 of the Department of
Revenue Law shall make | ||
all payments required by rules of the Department by
electronic | ||
funds transfer. | ||
Before August 1 of each year beginning in 1993, the | ||
Department shall
notify all taxpayers required to make payments | ||
by electronic funds
transfer. All taxpayers
required to make | ||
payments by electronic funds transfer shall make those
payments | ||
for
a minimum of one year beginning on October 1. | ||
Any taxpayer not required to make payments by electronic | ||
funds transfer may
make payments by electronic funds transfer | ||
with
the permission of the Department. | ||
All taxpayers required to make payment by electronic funds | ||
transfer and
any taxpayers authorized to voluntarily make | ||
payments by electronic funds
transfer shall make those payments | ||
in the manner authorized by the Department. | ||
The Department shall adopt such rules as are necessary to | ||
effectuate a
program of electronic funds transfer and the | ||
requirements of this Section. | ||
Any amount which is required to be shown or reported on any | ||
return or
other document under this Act shall, if such amount | ||
is not a whole-dollar
amount, be increased to the nearest |
whole-dollar amount in any case where
the fractional part of a | ||
dollar is 50 cents or more, and decreased to the
nearest | ||
whole-dollar amount where the fractional part of a dollar is | ||
less
than 50 cents. | ||
If the retailer is otherwise required to file a monthly | ||
return and if the
retailer's average monthly tax liability to | ||
the Department does not exceed
$200, the Department may | ||
authorize his returns to be filed on a quarter
annual basis, | ||
with the return for January, February and March of a given
year | ||
being due by April 20 of such year; with the return for April, | ||
May and
June of a given year being due by July 20 of such year; | ||
with the return for
July, August and September of a given year | ||
being due by October 20 of such
year, and with the return for | ||
October, November and December of a given
year being due by | ||
January 20 of the following year. | ||
If the retailer is otherwise required to file a monthly or | ||
quarterly
return and if the retailer's average monthly tax | ||
liability with the
Department does not exceed $50, the | ||
Department may authorize his returns to
be filed on an annual | ||
basis, with the return for a given year being due by
January 20 | ||
of the following year. | ||
Such quarter annual and annual returns, as to form and | ||
substance,
shall be subject to the same requirements as monthly | ||
returns. | ||
Notwithstanding any other provision in this Act concerning | ||
the time
within which a retailer may file his return, in the |
case of any retailer
who ceases to engage in a kind of business | ||
which makes him responsible
for filing returns under this Act, | ||
such retailer shall file a final
return under this Act with the | ||
Department not more than one month after
discontinuing such | ||
business. | ||
Where the same person has more than one business registered | ||
with the
Department under separate registrations under this | ||
Act, such person may
not file each return that is due as a | ||
single return covering all such
registered businesses, but | ||
shall file separate returns for each such
registered business. | ||
In addition, with respect to motor vehicles, watercraft,
| ||
aircraft, and trailers that are required to be registered with | ||
an agency of
this State, every
retailer selling this kind of | ||
tangible personal property shall file,
with the Department, | ||
upon a form to be prescribed and supplied by the
Department, a | ||
separate return for each such item of tangible personal
| ||
property which the retailer sells, except that if, in the same
| ||
transaction, (i) a retailer of aircraft, watercraft, motor | ||
vehicles or
trailers transfers more than one aircraft, | ||
watercraft, motor
vehicle or trailer to another aircraft, | ||
watercraft, motor vehicle
retailer or trailer retailer for the | ||
purpose of resale
or (ii) a retailer of aircraft, watercraft, | ||
motor vehicles, or trailers
transfers more than one aircraft, | ||
watercraft, motor vehicle, or trailer to a
purchaser for use as | ||
a qualifying rolling stock as provided in Section 2-5 of
this | ||
Act, then
that seller may report the transfer of all aircraft,
|
watercraft, motor vehicles or trailers involved in that | ||
transaction to the
Department on the same uniform | ||
invoice-transaction reporting return form. For
purposes of | ||
this Section, "watercraft" means a Class 2, Class 3, or Class 4
| ||
watercraft as defined in Section 3-2 of the Boat Registration | ||
and Safety Act, a
personal watercraft, or any boat equipped | ||
with an inboard motor. | ||
Any retailer who sells only motor vehicles, watercraft,
| ||
aircraft, or trailers that are required to be registered with | ||
an agency of
this State, so that all
retailers' occupation tax | ||
liability is required to be reported, and is
reported, on such | ||
transaction reporting returns and who is not otherwise
required | ||
to file monthly or quarterly returns, need not file monthly or
| ||
quarterly returns. However, those retailers shall be required | ||
to
file returns on an annual basis. | ||
The transaction reporting return, in the case of motor | ||
vehicles
or trailers that are required to be registered with an | ||
agency of this
State, shall
be the same document as the Uniform | ||
Invoice referred to in Section 5-402
of The Illinois Vehicle | ||
Code and must show the name and address of the
seller; the name | ||
and address of the purchaser; the amount of the selling
price | ||
including the amount allowed by the retailer for traded-in
| ||
property, if any; the amount allowed by the retailer for the | ||
traded-in
tangible personal property, if any, to the extent to | ||
which Section 1 of
this Act allows an exemption for the value | ||
of traded-in property; the
balance payable after deducting such |
trade-in allowance from the total
selling price; the amount of | ||
tax due from the retailer with respect to
such transaction; the | ||
amount of tax collected from the purchaser by the
retailer on | ||
such transaction (or satisfactory evidence that such tax is
not | ||
due in that particular instance, if that is claimed to be the | ||
fact);
the place and date of the sale; a sufficient | ||
identification of the
property sold; such other information as | ||
is required in Section 5-402 of
The Illinois Vehicle Code, and | ||
such other information as the Department
may reasonably | ||
require. | ||
The transaction reporting return in the case of watercraft
| ||
or aircraft must show
the name and address of the seller; the | ||
name and address of the
purchaser; the amount of the selling | ||
price including the amount allowed
by the retailer for | ||
traded-in property, if any; the amount allowed by
the retailer | ||
for the traded-in tangible personal property, if any, to
the | ||
extent to which Section 1 of this Act allows an exemption for | ||
the
value of traded-in property; the balance payable after | ||
deducting such
trade-in allowance from the total selling price; | ||
the amount of tax due
from the retailer with respect to such | ||
transaction; the amount of tax
collected from the purchaser by | ||
the retailer on such transaction (or
satisfactory evidence that | ||
such tax is not due in that particular
instance, if that is | ||
claimed to be the fact); the place and date of the
sale, a | ||
sufficient identification of the property sold, and such other
| ||
information as the Department may reasonably require. |
Such transaction reporting return shall be filed not later | ||
than 20
days after the day of delivery of the item that is | ||
being sold, but may
be filed by the retailer at any time sooner | ||
than that if he chooses to
do so. The transaction reporting | ||
return and tax remittance or proof of
exemption from the | ||
Illinois use tax may be transmitted to the Department
by way of | ||
the State agency with which, or State officer with whom the
| ||
tangible personal property must be titled or registered (if | ||
titling or
registration is required) if the Department and such | ||
agency or State
officer determine that this procedure will | ||
expedite the processing of
applications for title or | ||
registration. | ||
With each such transaction reporting return, the retailer | ||
shall remit
the proper amount of tax due (or shall submit | ||
satisfactory evidence that
the sale is not taxable if that is | ||
the case), to the Department or its
agents, whereupon the | ||
Department shall issue, in the purchaser's name, a
use tax | ||
receipt (or a certificate of exemption if the Department is
| ||
satisfied that the particular sale is tax exempt) which such | ||
purchaser
may submit to the agency with which, or State officer | ||
with whom, he must
title or register the tangible personal | ||
property that is involved (if
titling or registration is | ||
required) in support of such purchaser's
application for an | ||
Illinois certificate or other evidence of title or
registration | ||
to such tangible personal property. | ||
No retailer's failure or refusal to remit tax under this |
Act
precludes a user, who has paid the proper tax to the | ||
retailer, from
obtaining his certificate of title or other | ||
evidence of title or
registration (if titling or registration | ||
is required) upon satisfying
the Department that such user has | ||
paid the proper tax (if tax is due) to
the retailer. The | ||
Department shall adopt appropriate rules to carry out
the | ||
mandate of this paragraph. | ||
If the user who would otherwise pay tax to the retailer | ||
wants the
transaction reporting return filed and the payment of | ||
the tax or proof
of exemption made to the Department before the | ||
retailer is willing to
take these actions and such user has not | ||
paid the tax to the retailer,
such user may certify to the fact | ||
of such delay by the retailer and may
(upon the Department | ||
being satisfied of the truth of such certification)
transmit | ||
the information required by the transaction reporting return
| ||
and the remittance for tax or proof of exemption directly to | ||
the
Department and obtain his tax receipt or exemption | ||
determination, in
which event the transaction reporting return | ||
and tax remittance (if a
tax payment was required) shall be | ||
credited by the Department to the
proper retailer's account | ||
with the Department, but without the 2.1% or 1.75%
discount | ||
provided for in this Section being allowed. When the user pays
| ||
the tax directly to the Department, he shall pay the tax in the | ||
same
amount and in the same form in which it would be remitted | ||
if the tax had
been remitted to the Department by the retailer. | ||
Refunds made by the seller during the preceding return |
period to
purchasers, on account of tangible personal property | ||
returned to the
seller, shall be allowed as a deduction under | ||
subdivision 5 of his monthly
or quarterly return, as the case | ||
may be, in case the
seller had theretofore included the | ||
receipts from the sale of such
tangible personal property in a | ||
return filed by him and had paid the tax
imposed by this Act | ||
with respect to such receipts. | ||
Where the seller is a corporation, the return filed on | ||
behalf of such
corporation shall be signed by the president, | ||
vice-president, secretary
or treasurer or by the properly | ||
accredited agent of such corporation. | ||
Where the seller is a limited liability company, the return | ||
filed on behalf
of the limited liability company shall be | ||
signed by a manager, member, or
properly accredited agent of | ||
the limited liability company. | ||
Except as provided in this Section, the retailer filing the | ||
return
under this Section shall, at the time of filing such | ||
return, pay to the
Department the amount of tax imposed by this | ||
Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | ||
on and after January 1, 1990, or $5 per
calendar year, | ||
whichever is greater, which is allowed to
reimburse the | ||
retailer for the expenses incurred in keeping records,
| ||
preparing and filing returns, remitting the tax and supplying | ||
data to
the Department on request. Any prepayment made pursuant | ||
to Section 2d
of this Act shall be included in the amount on | ||
which such
2.1% or 1.75% discount is computed. In the case of |
retailers who report
and pay the tax on a transaction by | ||
transaction basis, as provided in this
Section, such discount | ||
shall be taken with each such tax remittance
instead of when | ||
such retailer files his periodic return. The Department may | ||
disallow the discount for retailers whose certificate of | ||
registration is revoked at the time the return is filed, but | ||
only if the Department's decision to revoke the certificate of | ||
registration has become final. | ||
Before October 1, 2000, if the taxpayer's average monthly | ||
tax liability
to the Department
under this Act, the Use Tax | ||
Act, the Service Occupation Tax
Act, and the Service Use Tax | ||
Act, excluding any liability for prepaid sales
tax to be | ||
remitted in accordance with Section 2d of this Act, was
$10,000
| ||
or more during the preceding 4 complete calendar quarters, he | ||
shall file a
return with the Department each month by the 20th | ||
day of the month next
following the month during which such tax | ||
liability is incurred and shall
make payments to the Department | ||
on or before the 7th, 15th, 22nd and last
day of the month | ||
during which such liability is incurred.
On and after October | ||
1, 2000, if the taxpayer's average monthly tax liability
to the | ||
Department under this Act, the Use Tax Act, the Service | ||
Occupation Tax
Act, and the Service Use Tax Act, excluding any | ||
liability for prepaid sales tax
to be remitted in accordance | ||
with Section 2d of this Act, was $20,000 or more
during the | ||
preceding 4 complete calendar quarters, he shall file a return | ||
with
the Department each month by the 20th day of the month |
next following the month
during which such tax liability is | ||
incurred and shall make payment to the
Department on or before | ||
the 7th, 15th, 22nd and last day of the month during
which such | ||
liability is incurred.
If the month
during which such tax | ||
liability is incurred began prior to January 1, 1985,
each | ||
payment shall be in an amount equal to 1/4 of the taxpayer's | ||
actual
liability for the month or an amount set by the | ||
Department not to exceed
1/4 of the average monthly liability | ||
of the taxpayer to the Department for
the preceding 4 complete | ||
calendar quarters (excluding the month of highest
liability and | ||
the month of lowest liability in such 4 quarter period). If
the | ||
month during which such tax liability is incurred begins on or | ||
after
January 1, 1985 and prior to January 1, 1987, each | ||
payment shall be in an
amount equal to 22.5% of the taxpayer's | ||
actual liability for the month or
27.5% of the taxpayer's | ||
liability for the same calendar
month of the preceding year. If | ||
the month during which such tax
liability is incurred begins on | ||
or after January 1, 1987 and prior to
January 1, 1988, each | ||
payment shall be in an amount equal to 22.5% of the
taxpayer's | ||
actual liability for the month or 26.25% of the taxpayer's
| ||
liability for the same calendar month of the preceding year. If | ||
the month
during which such tax liability is incurred begins on | ||
or after January 1,
1988, and prior to January 1, 1989, or | ||
begins on or after January 1, 1996, each
payment shall be in an | ||
amount
equal to 22.5% of the taxpayer's actual liability for | ||
the month or 25% of
the taxpayer's liability for the same |
calendar month of the preceding year. If
the month during which | ||
such tax liability is incurred begins on or after
January 1, | ||
1989, and prior to January 1, 1996, each payment shall be in an
| ||
amount equal to 22.5% of the
taxpayer's actual liability for | ||
the month or 25% of the taxpayer's
liability for the same | ||
calendar month of the preceding year or 100% of the
taxpayer's | ||
actual liability for the quarter monthly reporting period. The
| ||
amount of such quarter monthly payments shall be credited | ||
against
the final tax liability of the taxpayer's return for | ||
that month. Before
October 1, 2000, once
applicable, the | ||
requirement of the making of quarter monthly payments to
the | ||
Department by taxpayers having an average monthly tax liability | ||
of
$10,000 or more as determined in the manner provided above
| ||
shall continue
until such taxpayer's average monthly liability | ||
to the Department during
the preceding 4 complete calendar | ||
quarters (excluding the month of highest
liability and the | ||
month of lowest liability) is less than
$9,000, or until
such | ||
taxpayer's average monthly liability to the Department as | ||
computed for
each calendar quarter of the 4 preceding complete | ||
calendar quarter period
is less than $10,000. However, if a | ||
taxpayer can show the
Department that
a substantial change in | ||
the taxpayer's business has occurred which causes
the taxpayer | ||
to anticipate that his average monthly tax liability for the
| ||
reasonably foreseeable future will fall below the $10,000 | ||
threshold
stated above, then
such taxpayer
may petition the | ||
Department for a change in such taxpayer's reporting
status. On |
and after October 1, 2000, once applicable, the requirement of
| ||
the making of quarter monthly payments to the Department by | ||
taxpayers having an
average monthly tax liability of $20,000 or | ||
more as determined in the manner
provided above shall continue | ||
until such taxpayer's average monthly liability
to the | ||
Department during the preceding 4 complete calendar quarters | ||
(excluding
the month of highest liability and the month of | ||
lowest liability) is less than
$19,000 or until such taxpayer's | ||
average monthly liability to the Department as
computed for | ||
each calendar quarter of the 4 preceding complete calendar | ||
quarter
period is less than $20,000. However, if a taxpayer can | ||
show the Department
that a substantial change in the taxpayer's | ||
business has occurred which causes
the taxpayer to anticipate | ||
that his average monthly tax liability for the
reasonably | ||
foreseeable future will fall below the $20,000 threshold stated
| ||
above, then such taxpayer may petition the Department for a | ||
change in such
taxpayer's reporting status. The Department | ||
shall change such taxpayer's
reporting status
unless it finds | ||
that such change is seasonal in nature and not likely to be
| ||
long term. If any such quarter monthly payment is not paid at | ||
the time or
in the amount required by this Section, then the | ||
taxpayer shall be liable for
penalties and interest on the | ||
difference
between the minimum amount due as a payment and the | ||
amount of such quarter
monthly payment actually and timely | ||
paid, except insofar as the
taxpayer has previously made | ||
payments for that month to the Department in
excess of the |
minimum payments previously due as provided in this Section.
| ||
The Department shall make reasonable rules and regulations to | ||
govern the
quarter monthly payment amount and quarter monthly | ||
payment dates for
taxpayers who file on other than a calendar | ||
monthly basis. | ||
The provisions of this paragraph apply before October 1, | ||
2001.
Without regard to whether a taxpayer is required to make | ||
quarter monthly
payments as specified above, any taxpayer who | ||
is required by Section 2d
of this Act to collect and remit | ||
prepaid taxes and has collected prepaid
taxes which average in | ||
excess of $25,000 per month during the preceding
2 complete | ||
calendar quarters, shall file a return with the Department as
| ||
required by Section 2f and shall make payments to the | ||
Department on or before
the 7th, 15th, 22nd and last day of the | ||
month during which such liability
is incurred. If the month | ||
during which such tax liability is incurred
began prior to the | ||
effective date of this amendatory Act of 1985, each
payment | ||
shall be in an amount not less than 22.5% of the taxpayer's | ||
actual
liability under Section 2d. If the month during which | ||
such tax liability
is incurred begins on or after January 1, | ||
1986, each payment shall be in an
amount equal to 22.5% of the | ||
taxpayer's actual liability for the month or
27.5% of the | ||
taxpayer's liability for the same calendar month of the
| ||
preceding calendar year. If the month during which such tax | ||
liability is
incurred begins on or after January 1, 1987, each | ||
payment shall be in an
amount equal to 22.5% of the taxpayer's |
actual liability for the month or
26.25% of the taxpayer's | ||
liability for the same calendar month of the
preceding year. | ||
The amount of such quarter monthly payments shall be
credited | ||
against the final tax liability of the taxpayer's return for | ||
that
month filed under this Section or Section 2f, as the case | ||
may be. Once
applicable, the requirement of the making of | ||
quarter monthly payments to
the Department pursuant to this | ||
paragraph shall continue until such
taxpayer's average monthly | ||
prepaid tax collections during the preceding 2
complete | ||
calendar quarters is $25,000 or less. If any such quarter | ||
monthly
payment is not paid at the time or in the amount | ||
required, the taxpayer
shall be liable for penalties and | ||
interest on such difference, except
insofar as the taxpayer has | ||
previously made payments for that month in
excess of the | ||
minimum payments previously due. | ||
The provisions of this paragraph apply on and after October | ||
1, 2001.
Without regard to whether a taxpayer is required to | ||
make quarter monthly
payments as specified above, any taxpayer | ||
who is required by Section 2d of this
Act to collect and remit | ||
prepaid taxes and has collected prepaid taxes that
average in | ||
excess of $20,000 per month during the preceding 4 complete | ||
calendar
quarters shall file a return with the Department as | ||
required by Section 2f
and shall make payments to the | ||
Department on or before the 7th, 15th, 22nd and
last day of the | ||
month during which the liability is incurred. Each payment
| ||
shall be in an amount equal to 22.5% of the taxpayer's actual |
liability for the
month or 25% of the taxpayer's liability for | ||
the same calendar month of the
preceding year. The amount of | ||
the quarter monthly payments shall be credited
against the | ||
final tax liability of the taxpayer's return for that month | ||
filed
under this Section or Section 2f, as the case may be. | ||
Once applicable, the
requirement of the making of quarter | ||
monthly payments to the Department
pursuant to this paragraph | ||
shall continue until the taxpayer's average monthly
prepaid tax | ||
collections during the preceding 4 complete calendar quarters
| ||
(excluding the month of highest liability and the month of | ||
lowest liability) is
less than $19,000 or until such taxpayer's | ||
average monthly liability to the
Department as computed for | ||
each calendar quarter of the 4 preceding complete
calendar | ||
quarters is less than $20,000. If any such quarter monthly | ||
payment is
not paid at the time or in the amount required, the | ||
taxpayer shall be liable
for penalties and interest on such | ||
difference, except insofar as the taxpayer
has previously made | ||
payments for that month in excess of the minimum payments
| ||
previously due. | ||
If any payment provided for in this Section exceeds
the | ||
taxpayer's liabilities under this Act, the Use Tax Act, the | ||
Service
Occupation Tax Act and the Service Use Tax Act, as | ||
shown on an original
monthly return, the Department shall, if | ||
requested by the taxpayer, issue to
the taxpayer a credit | ||
memorandum no later than 30 days after the date of
payment. The | ||
credit evidenced by such credit memorandum may
be assigned by |
the taxpayer to a similar taxpayer under this Act, the
Use Tax | ||
Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||
in
accordance with reasonable rules and regulations to be | ||
prescribed by the
Department. If no such request is made, the | ||
taxpayer may credit such excess
payment against tax liability | ||
subsequently to be remitted to the Department
under this Act, | ||
the Use Tax Act, the Service Occupation Tax Act or the
Service | ||
Use Tax Act, in accordance with reasonable rules and | ||
regulations
prescribed by the Department. If the Department | ||
subsequently determined
that all or any part of the credit | ||
taken was not actually due to the
taxpayer, the taxpayer's 2.1% | ||
and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% | ||
of the difference between the credit taken and that
actually | ||
due, and that taxpayer shall be liable for penalties and | ||
interest
on such difference. | ||
If a retailer of motor fuel is entitled to a credit under | ||
Section 2d of
this Act which exceeds the taxpayer's liability | ||
to the Department under
this Act for the month which the | ||
taxpayer is filing a return, the
Department shall issue the | ||
taxpayer a credit memorandum for the excess. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the Local Government Tax Fund, a special fund in the | ||
State treasury which
is hereby created, the net revenue | ||
realized for the preceding month from
the 1% tax on sales of | ||
food for human consumption which is to be consumed
off the | ||
premises where it is sold (other than alcoholic beverages, soft
|
drinks and food which has been prepared for immediate | ||
consumption) and
prescription and nonprescription medicines, | ||
drugs, medical appliances and
insulin, urine testing | ||
materials, syringes and needles used by diabetics. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the County and Mass Transit District Fund, a special | ||
fund in the State
treasury which is hereby created, 4% of the | ||
net revenue realized
for the preceding month from the 6.25% | ||
general rate. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
County and Mass Transit District Fund 20% of the | ||
net revenue realized for the
preceding month from the 1.25% | ||
rate on the selling price of motor fuel and
gasohol. Beginning | ||
September 1, 2010, each month the Department shall pay into the | ||
County and Mass Transit District Fund 20% of the net revenue | ||
realized for the preceding month from the 1.25% rate on the | ||
selling price of sales tax holiday items. | ||
Beginning January 1, 1990, each month the Department shall | ||
pay into
the Local Government Tax Fund 16% of the net revenue | ||
realized for the
preceding month from the 6.25% general rate on | ||
the selling price of
tangible personal property. | ||
Beginning August 1, 2000, each
month the Department shall | ||
pay into the
Local Government Tax Fund 80% of the net revenue | ||
realized for the preceding
month from the 1.25% rate on the | ||
selling price of motor fuel and gasohol. Beginning September 1, | ||
2010, each month the Department shall pay into the Local |
Government Tax Fund 80% of the net revenue realized for the | ||
preceding month from the 1.25% rate on the selling price of | ||
sales tax holiday items. | ||
Beginning October 1, 2009, each month the Department shall | ||
pay into the Capital Projects Fund an amount that is equal to | ||
an amount estimated by the Department to represent 80% of the | ||
net revenue realized for the preceding month from the sale of | ||
candy, grooming and hygiene products, and soft drinks that had | ||
been taxed at a rate of 1% prior to September 1, 2009 but that | ||
is now taxed at 6.25%. | ||
Beginning July 1, 2011, each
month the Department shall pay | ||
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue | ||
realized for the
preceding month from the 6.25% general rate on | ||
the selling price of sorbents used in Illinois in the process | ||
of sorbent injection as used to comply with the Environmental | ||
Protection Act or the federal Clean Air Act, but the total | ||
payment into the Clean Air Act (CAA) Permit Fund under this Act | ||
and the Use Tax Act shall not exceed $2,000,000 in any fiscal | ||
year. | ||
Of the remainder of the moneys received by the Department | ||
pursuant
to this Act, (a) 1.75% thereof shall be paid into the | ||
Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | ||
and after July 1, 1989,
3.8% thereof shall be paid into the | ||
Build Illinois Fund; provided, however,
that if in any fiscal | ||
year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | ||
may be, of the moneys received by the Department and required |
to
be paid into the Build Illinois Fund pursuant to this Act, | ||||||||||||||||||||
Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | ||||||||||||||||||||
Act, and Section 9 of the
Service Occupation Tax Act, such Acts | ||||||||||||||||||||
being hereinafter called the "Tax
Acts" and such aggregate of | ||||||||||||||||||||
2.2% or 3.8%, as the case may be, of moneys
being hereinafter | ||||||||||||||||||||
called the "Tax Act Amount", and (2) the amount
transferred to | ||||||||||||||||||||
the Build Illinois Fund from the State and Local Sales Tax
| ||||||||||||||||||||
Reform Fund shall be less than the Annual Specified Amount (as | ||||||||||||||||||||
hereinafter
defined), an amount equal to the difference shall | ||||||||||||||||||||
be immediately paid into
the Build Illinois Fund from other | ||||||||||||||||||||
moneys received by the Department
pursuant to the Tax Acts; the | ||||||||||||||||||||
"Annual Specified Amount" means the amounts
specified below for | ||||||||||||||||||||
fiscal years 1986 through 1993: | ||||||||||||||||||||
| ||||||||||||||||||||
and means the Certified Annual Debt Service Requirement (as | ||||||||||||||||||||
defined in
Section 13 of the Build Illinois Bond Act) or the | ||||||||||||||||||||
Tax Act Amount, whichever
is greater, for fiscal year 1994 and | ||||||||||||||||||||
each fiscal year thereafter; and
further provided, that if on |
the last business day of any month the sum of
(1) the Tax Act | ||
Amount required to be deposited into the Build Illinois
Bond | ||
Account in the Build Illinois Fund during such month and (2) | ||
the
amount transferred to the Build Illinois Fund from the | ||
State and Local
Sales Tax Reform Fund shall have been less than | ||
1/12 of the Annual
Specified Amount, an amount equal to the | ||
difference shall be immediately
paid into the Build Illinois | ||
Fund from other moneys received by the
Department pursuant to | ||
the Tax Acts; and, further provided, that in no
event shall the | ||
payments required under the preceding proviso result in
| ||
aggregate payments into the Build Illinois Fund pursuant to | ||
this clause (b)
for any fiscal year in excess of the greater of | ||
(i) the Tax Act Amount or
(ii) the Annual Specified Amount for | ||
such fiscal year. The amounts payable
into the Build Illinois | ||
Fund under clause (b) of the first sentence in this
paragraph | ||
shall be payable only until such time as the aggregate amount | ||
on
deposit under each trust indenture securing Bonds issued and | ||
outstanding
pursuant to the Build Illinois Bond Act is | ||
sufficient, taking into account
any future investment income, | ||
to fully provide, in accordance with such
indenture, for the | ||
defeasance of or the payment of the principal of,
premium, if | ||
any, and interest on the Bonds secured by such indenture and on
| ||
any Bonds expected to be issued thereafter and all fees and | ||
costs payable
with respect thereto, all as certified by the | ||
Director of the Bureau of the
Budget (now Governor's Office of | ||
Management and Budget). If on the last
business day of any |
month in which Bonds are
outstanding pursuant to the Build | ||
Illinois Bond Act, the aggregate of
moneys deposited in the | ||
Build Illinois Bond Account in the Build Illinois
Fund in such | ||
month shall be less than the amount required to be transferred
| ||
in such month from the Build Illinois Bond Account to the Build | ||
Illinois
Bond Retirement and Interest Fund pursuant to Section | ||
13 of the Build
Illinois Bond Act, an amount equal to such | ||
deficiency shall be immediately
paid from other moneys received | ||
by the Department pursuant to the Tax Acts
to the Build | ||
Illinois Fund; provided, however, that any amounts paid to the
| ||
Build Illinois Fund in any fiscal year pursuant to this | ||
sentence shall be
deemed to constitute payments pursuant to | ||
clause (b) of the first sentence
of this paragraph and shall | ||
reduce the amount otherwise payable for such
fiscal year | ||
pursuant to that clause (b). The moneys received by the
| ||
Department pursuant to this Act and required to be deposited | ||
into the Build
Illinois Fund are subject to the pledge, claim | ||
and charge set forth in
Section 12 of the Build Illinois Bond | ||
Act. | ||
Subject to payment of amounts into the Build Illinois Fund | ||
as provided in
the preceding paragraph or in any amendment | ||
thereto hereafter enacted, the
following specified monthly | ||
installment of the amount requested in the
certificate of the | ||
Chairman of the Metropolitan Pier and Exposition
Authority | ||
provided under Section 8.25f of the State Finance Act, but not | ||
in
excess of sums designated as "Total Deposit", shall be |
deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| |||||||||||
Beginning July 20, 1993 and in each month of each fiscal | |||||||||||
year thereafter,
one-eighth of the amount requested in the | |||||||||||
certificate of the Chairman of
the Metropolitan Pier and | |||||||||||
Exposition Authority for that fiscal year, less
the amount | |||||||||||
deposited into the McCormick Place Expansion Project Fund by | |||||||||||
the
State Treasurer in the respective month under subsection | |||||||||||
(g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||
Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||
required under this Section for previous
months and years, | |||||||||||
shall be deposited into the McCormick Place Expansion
Project | |||||||||||
Fund, until the full amount requested for the fiscal year, but | |||||||||||
not
in excess of the amount specified above as "Total Deposit", | |||||||||||
has been deposited. | |||||||||||
Subject to payment of amounts into the Build Illinois Fund | |||||||||||
and the
McCormick Place Expansion Project Fund pursuant to the | |||||||||||
preceding paragraphs
or in any amendments
thereto hereafter | |||||||||||
enacted, beginning July 1, 1993, the Department shall each
| |||||||||||
month pay into the Illinois Tax Increment Fund 0.27% of 80% of | |||||||||||
the net revenue
realized for the preceding month from the 6.25% | |||||||||||
general rate on the selling
price of tangible personal | |||||||||||
property. | |||||||||||
Subject to payment of amounts into the Build Illinois Fund | |||||||||||
and the
McCormick Place Expansion Project Fund pursuant to the |
preceding paragraphs or in any
amendments thereto hereafter | ||
enacted, beginning with the receipt of the first
report of | ||
taxes paid by an eligible business and continuing for a 25-year
| ||
period, the Department shall each month pay into the Energy | ||
Infrastructure
Fund 80% of the net revenue realized from the | ||
6.25% general rate on the
selling price of Illinois-mined coal | ||
that was sold to an eligible business.
For purposes of this | ||
paragraph, the term "eligible business" means a new
electric | ||
generating facility certified pursuant to Section 605-332 of | ||
the
Department of Commerce and Economic Opportunity
Law of the | ||
Civil Administrative Code of Illinois. | ||
Of the remainder of the moneys received by the Department | ||
pursuant to
this Act, 75% thereof shall be paid into the State | ||
Treasury and 25% shall
be reserved in a special account and | ||
used only for the transfer to the
Common School Fund as part of | ||
the monthly transfer from the General Revenue
Fund in | ||
accordance with Section 8a of the State Finance Act. | ||
The Department may, upon separate written notice to a | ||
taxpayer,
require the taxpayer to prepare and file with the | ||
Department on a form
prescribed by the Department within not | ||
less than 60 days after receipt
of the notice an annual | ||
information return for the tax year specified in
the notice. | ||
Such annual return to the Department shall include a
statement | ||
of gross receipts as shown by the retailer's last Federal | ||
income
tax return. If the total receipts of the business as | ||
reported in the
Federal income tax return do not agree with the |
gross receipts reported to
the Department of Revenue for the | ||
same period, the retailer shall attach
to his annual return a | ||
schedule showing a reconciliation of the 2
amounts and the | ||
reasons for the difference. The retailer's annual
return to the | ||
Department shall also disclose the cost of goods sold by
the | ||
retailer during the year covered by such return, opening and | ||
closing
inventories of such goods for such year, costs of goods | ||
used from stock
or taken from stock and given away by the | ||
retailer during such year,
payroll information of the | ||
retailer's business during such year and any
additional | ||
reasonable information which the Department deems would be
| ||
helpful in determining the accuracy of the monthly, quarterly | ||
or annual
returns filed by such retailer as provided for in | ||
this Section. | ||
If the annual information return required by this Section | ||
is not
filed when and as required, the taxpayer shall be liable | ||
as follows: | ||
(i) Until January 1, 1994, the taxpayer shall be liable
| ||
for a penalty equal to 1/6 of 1% of the tax due from such | ||
taxpayer under
this Act during the period to be covered by | ||
the annual return for each
month or fraction of a month | ||
until such return is filed as required, the
penalty to be | ||
assessed and collected in the same manner as any other
| ||
penalty provided for in this Act. | ||
(ii) On and after January 1, 1994, the taxpayer shall | ||
be
liable for a penalty as described in Section 3-4 of the |
Uniform Penalty and
Interest Act. | ||
The chief executive officer, proprietor, owner or highest | ||
ranking
manager shall sign the annual return to certify the | ||
accuracy of the
information contained therein. Any person who | ||
willfully signs the
annual return containing false or | ||
inaccurate information shall be guilty
of perjury and punished | ||
accordingly. The annual return form prescribed
by the | ||
Department shall include a warning that the person signing the
| ||
return may be liable for perjury. | ||
The provisions of this Section concerning the filing of an | ||
annual
information return do not apply to a retailer who is not | ||
required to
file an income tax return with the United States | ||
Government. | ||
As soon as possible after the first day of each month, upon | ||
certification
of the Department of Revenue, the Comptroller | ||
shall order transferred and
the Treasurer shall transfer from | ||
the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||
equal to 1.7% of 80% of the net revenue realized
under this Act | ||
for the second preceding
month.
Beginning April 1, 2000, this | ||
transfer is no longer required
and shall not be made. | ||
Net revenue realized for a month shall be the revenue | ||
collected by the
State pursuant to this Act, less the amount | ||
paid out during that month as
refunds to taxpayers for | ||
overpayment of liability. | ||
For greater simplicity of administration, manufacturers, | ||
importers
and wholesalers whose products are sold at retail in |
Illinois by
numerous retailers, and who wish to do so, may | ||
assume the responsibility
for accounting and paying to the | ||
Department all tax accruing under this
Act with respect to such | ||
sales, if the retailers who are affected do not
make written | ||
objection to the Department to this arrangement. | ||
Any person who promotes, organizes, provides retail | ||
selling space for
concessionaires or other types of sellers at | ||
the Illinois State Fair, DuQuoin
State Fair, county fairs, | ||
local fairs, art shows, flea markets and similar
exhibitions or | ||
events, including any transient merchant as defined by Section | ||
2
of the Transient Merchant Act of 1987, is required to file a | ||
report with the
Department providing the name of the merchant's | ||
business, the name of the
person or persons engaged in | ||
merchant's business, the permanent address and
Illinois | ||
Retailers Occupation Tax Registration Number of the merchant, | ||
the
dates and location of the event and other reasonable | ||
information that the
Department may require. The report must be | ||
filed not later than the 20th day
of the month next following | ||
the month during which the event with retail sales
was held. | ||
Any person who fails to file a report required by this Section
| ||
commits a business offense and is subject to a fine not to | ||
exceed $250. | ||
Any person engaged in the business of selling tangible | ||
personal
property at retail as a concessionaire or other type | ||
of seller at the
Illinois State Fair, county fairs, art shows, | ||
flea markets and similar
exhibitions or events, or any |
transient merchants, as defined by Section 2
of the Transient | ||
Merchant Act of 1987, may be required to make a daily report
of | ||
the amount of such sales to the Department and to make a daily | ||
payment of
the full amount of tax due. The Department shall | ||
impose this
requirement when it finds that there is a | ||
significant risk of loss of
revenue to the State at such an | ||
exhibition or event. Such a finding
shall be based on evidence | ||
that a substantial number of concessionaires
or other sellers | ||
who are not residents of Illinois will be engaging in
the | ||
business of selling tangible personal property at retail at the
| ||
exhibition or event, or other evidence of a significant risk of | ||
loss of revenue
to the State. The Department shall notify | ||
concessionaires and other sellers
affected by the imposition of | ||
this requirement. In the absence of
notification by the | ||
Department, the concessionaires and other sellers
shall file | ||
their returns as otherwise required in this Section. | ||
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | ||
eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11; | ||
97-333, eff. 8-12-11.)
|