Bill Text: IL SB2199 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act. Reduces by 25% the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces by 20% the amounts deposited into the Local Government Tax Fund, the County and Mass Transit District Fund, and the State and Local Sales Tax Reform Fund each month. Provides that the reductions under the amendatory Act begin July 1, 2017. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2017-05-12 - Rule 3-9(a) / Re-referred to Assignments [SB2199 Detail]

Download: Illinois-2017-SB2199-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2199

Introduced 4/27/2017, by Sen. Kyle McCarter

SYNOPSIS AS INTRODUCED:
35 ILCS 5/901 from Ch. 120, par. 9-901
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442

Amends the Illinois Income Tax Act. Reduces by 25% the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces by 20% the amounts deposited into the Local Government Tax Fund, the County and Mass Transit District Fund, and the State and Local Sales Tax Reform Fund each month. Provides that the reductions under the amendatory Act begin July 1, 2017. Effective immediately.
LRB100 12245 HLH 24763 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB2199LRB100 12245 HLH 24763 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
6 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
7 Sec. 901. Collection authority.
8 (a) In general.
9 The Department shall collect the taxes imposed by this Act.
10The Department shall collect certified past due child support
11amounts under Section 2505-650 of the Department of Revenue Law
12(20 ILCS 2505/2505-650). Except as provided in subsections (c),
13(e), (f), (g), and (h) of this Section, money collected
14pursuant to subsections (a) and (b) of Section 201 of this Act
15shall be paid into the General Revenue Fund in the State
16treasury; money collected pursuant to subsections (c) and (d)
17of Section 201 of this Act shall be paid into the Personal
18Property Tax Replacement Fund, a special fund in the State
19Treasury; and money collected under Section 2505-650 of the
20Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
21into the Child Support Enforcement Trust Fund, a special fund
22outside the State Treasury, or to the State Disbursement Unit
23established under Section 10-26 of the Illinois Public Aid

SB2199- 2 -LRB100 12245 HLH 24763 b
1Code, as directed by the Department of Healthcare and Family
2Services.
3 (b) Local Government Distributive Fund.
4 Beginning August 1, 1969, and continuing through June 30,
51994, the Treasurer shall transfer each month from the General
6Revenue Fund to a special fund in the State treasury, to be
7known as the "Local Government Distributive Fund", an amount
8equal to 1/12 of the net revenue realized from the tax imposed
9by subsections (a) and (b) of Section 201 of this Act during
10the preceding month. Beginning July 1, 1994, and continuing
11through June 30, 1995, the Treasurer shall transfer each month
12from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to 1/11 of the net revenue
14realized from the tax imposed by subsections (a) and (b) of
15Section 201 of this Act during the preceding month. Beginning
16July 1, 1995 and continuing through January 31, 2011, the
17Treasurer shall transfer each month from the General Revenue
18Fund to the Local Government Distributive Fund an amount equal
19to the net of (i) 1/10 of the net revenue realized from the tax
20imposed by subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act during the preceding month (ii) minus,
22beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
23and beginning July 1, 2004, zero. Beginning February 1, 2011,
24and continuing through January 31, 2015, the Treasurer shall
25transfer each month from the General Revenue Fund to the Local
26Government Distributive Fund an amount equal to the sum of (i)

SB2199- 3 -LRB100 12245 HLH 24763 b
16% (10% of the ratio of the 3% individual income tax rate prior
2to 2011 to the 5% individual income tax rate after 2010) of the
3net revenue realized from the tax imposed by subsections (a)
4and (b) of Section 201 of this Act upon individuals, trusts,
5and estates during the preceding month and (ii) 6.86% (10% of
6the ratio of the 4.8% corporate income tax rate prior to 2011
7to the 7% corporate income tax rate after 2010) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon corporations during the
10preceding month. Beginning February 1, 2015 and continuing
11through June 30, 2017 January 31, 2025, the Treasurer shall
12transfer each month from the General Revenue Fund to the Local
13Government Distributive Fund an amount equal to the sum of (i)
148% (10% of the ratio of the 3% individual income tax rate prior
15to 2011 to the 3.75% individual income tax rate after 2014) of
16the net revenue realized from the tax imposed by subsections
17(a) and (b) of Section 201 of this Act upon individuals,
18trusts, and estates during the preceding month and (ii) 9.14%
19(10% of the ratio of the 4.8% corporate income tax rate prior
20to 2011 to the 5.25% corporate income tax rate after 2014) of
21the net revenue realized from the tax imposed by subsections
22(a) and (b) of Section 201 of this Act upon corporations during
23the preceding month. Beginning July 1, 2017 February 1, 2025,
24the Treasurer shall transfer each month from the General
25Revenue Fund to the Local Government Distributive Fund an
26amount equal to the sum of (i) 6% 9.23% (75% of 10% of the ratio

SB2199- 4 -LRB100 12245 HLH 24763 b
1of the 3% individual income tax rate prior to 2011 to the 3.75%
23.25% individual income tax rate after 2014 2024) of the net
3revenue realized from the tax imposed by subsections (a) and
4(b) of Section 201 of this Act upon individuals, trusts, and
5estates during the preceding month and (ii) 6.85% (75% of 10%
6of the ratio of the 4.8% corporate income tax rate prior to
72011 to the 5.25% corporate income tax rate after 2014) 10% of
8the net revenue realized from the tax imposed by subsections
9(a) and (b) of Section 201 of this Act upon corporations during
10the preceding month. Beginning February 1, 2025, the Treasurer
11shall transfer each month from the General Revenue Fund to the
12Local Government Distributive Fund an amount equal to the sum
13of (i) 6.92% (75% of 10% of the ratio of the 3% individual
14income tax rate prior to 2011 to the 3.25% individual income
15tax rate after 2024) and (ii) 7.5% of the net revenue realized
16from the tax imposed by subsections (a) and (b) of Section 201
17of this Act upon corporations during the preceding month. Net
18revenue realized for a month shall be defined as the revenue
19from the tax imposed by subsections (a) and (b) of Section 201
20of this Act which is deposited in the General Revenue Fund, the
21Education Assistance Fund, the Income Tax Surcharge Local
22Government Distributive Fund, the Fund for the Advancement of
23Education, and the Commitment to Human Services Fund during the
24month minus the amount paid out of the General Revenue Fund in
25State warrants during that same month as refunds to taxpayers
26for overpayment of liability under the tax imposed by

SB2199- 5 -LRB100 12245 HLH 24763 b
1subsections (a) and (b) of Section 201 of this Act.
2 Beginning on August 26, 2014 (the effective date of Public
3Act 98-1052), the Comptroller shall perform the transfers
4required by this subsection (b) no later than 60 days after he
5or she receives the certification from the Treasurer as
6provided in Section 1 of the State Revenue Sharing Act.
7 (c) Deposits Into Income Tax Refund Fund.
8 (1) Beginning on January 1, 1989 and thereafter, the
9 Department shall deposit a percentage of the amounts
10 collected pursuant to subsections (a) and (b)(1), (2), and
11 (3), of Section 201 of this Act into a fund in the State
12 treasury known as the Income Tax Refund Fund. The
13 Department shall deposit 6% of such amounts during the
14 period beginning January 1, 1989 and ending on June 30,
15 1989. Beginning with State fiscal year 1990 and for each
16 fiscal year thereafter, the percentage deposited into the
17 Income Tax Refund Fund during a fiscal year shall be the
18 Annual Percentage. For fiscal years 1999 through 2001, the
19 Annual Percentage shall be 7.1%. For fiscal year 2003, the
20 Annual Percentage shall be 8%. For fiscal year 2004, the
21 Annual Percentage shall be 11.7%. Upon the effective date
22 of this amendatory Act of the 93rd General Assembly, the
23 Annual Percentage shall be 10% for fiscal year 2005. For
24 fiscal year 2006, the Annual Percentage shall be 9.75%. For
25 fiscal year 2007, the Annual Percentage shall be 9.75%. For
26 fiscal year 2008, the Annual Percentage shall be 7.75%. For

SB2199- 6 -LRB100 12245 HLH 24763 b
1 fiscal year 2009, the Annual Percentage shall be 9.75%. For
2 fiscal year 2010, the Annual Percentage shall be 9.75%. For
3 fiscal year 2011, the Annual Percentage shall be 8.75%. For
4 fiscal year 2012, the Annual Percentage shall be 8.75%. For
5 fiscal year 2013, the Annual Percentage shall be 9.75%. For
6 fiscal year 2014, the Annual Percentage shall be 9.5%. For
7 fiscal year 2015, the Annual Percentage shall be 10%. For
8 all other fiscal years, the Annual Percentage shall be
9 calculated as a fraction, the numerator of which shall be
10 the amount of refunds approved for payment by the
11 Department during the preceding fiscal year as a result of
12 overpayment of tax liability under subsections (a) and
13 (b)(1), (2), and (3) of Section 201 of this Act plus the
14 amount of such refunds remaining approved but unpaid at the
15 end of the preceding fiscal year, minus the amounts
16 transferred into the Income Tax Refund Fund from the
17 Tobacco Settlement Recovery Fund, and the denominator of
18 which shall be the amounts which will be collected pursuant
19 to subsections (a) and (b)(1), (2), and (3) of Section 201
20 of this Act during the preceding fiscal year; except that
21 in State fiscal year 2002, the Annual Percentage shall in
22 no event exceed 7.6%. The Director of Revenue shall certify
23 the Annual Percentage to the Comptroller on the last
24 business day of the fiscal year immediately preceding the
25 fiscal year for which it is to be effective.
26 (2) Beginning on January 1, 1989 and thereafter, the

SB2199- 7 -LRB100 12245 HLH 24763 b
1 Department shall deposit a percentage of the amounts
2 collected pursuant to subsections (a) and (b)(6), (7), and
3 (8), (c) and (d) of Section 201 of this Act into a fund in
4 the State treasury known as the Income Tax Refund Fund. The
5 Department shall deposit 18% of such amounts during the
6 period beginning January 1, 1989 and ending on June 30,
7 1989. Beginning with State fiscal year 1990 and for each
8 fiscal year thereafter, the percentage deposited into the
9 Income Tax Refund Fund during a fiscal year shall be the
10 Annual Percentage. For fiscal years 1999, 2000, and 2001,
11 the Annual Percentage shall be 19%. For fiscal year 2003,
12 the Annual Percentage shall be 27%. For fiscal year 2004,
13 the Annual Percentage shall be 32%. Upon the effective date
14 of this amendatory Act of the 93rd General Assembly, the
15 Annual Percentage shall be 24% for fiscal year 2005. For
16 fiscal year 2006, the Annual Percentage shall be 20%. For
17 fiscal year 2007, the Annual Percentage shall be 17.5%. For
18 fiscal year 2008, the Annual Percentage shall be 15.5%. For
19 fiscal year 2009, the Annual Percentage shall be 17.5%. For
20 fiscal year 2010, the Annual Percentage shall be 17.5%. For
21 fiscal year 2011, the Annual Percentage shall be 17.5%. For
22 fiscal year 2012, the Annual Percentage shall be 17.5%. For
23 fiscal year 2013, the Annual Percentage shall be 14%. For
24 fiscal year 2014, the Annual Percentage shall be 13.4%. For
25 fiscal year 2015, the Annual Percentage shall be 14%. For
26 all other fiscal years, the Annual Percentage shall be

SB2199- 8 -LRB100 12245 HLH 24763 b
1 calculated as a fraction, the numerator of which shall be
2 the amount of refunds approved for payment by the
3 Department during the preceding fiscal year as a result of
4 overpayment of tax liability under subsections (a) and
5 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
6 Act plus the amount of such refunds remaining approved but
7 unpaid at the end of the preceding fiscal year, and the
8 denominator of which shall be the amounts which will be
9 collected pursuant to subsections (a) and (b)(6), (7), and
10 (8), (c) and (d) of Section 201 of this Act during the
11 preceding fiscal year; except that in State fiscal year
12 2002, the Annual Percentage shall in no event exceed 23%.
13 The Director of Revenue shall certify the Annual Percentage
14 to the Comptroller on the last business day of the fiscal
15 year immediately preceding the fiscal year for which it is
16 to be effective.
17 (3) The Comptroller shall order transferred and the
18 Treasurer shall transfer from the Tobacco Settlement
19 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
20 in January, 2001, (ii) $35,000,000 in January, 2002, and
21 (iii) $35,000,000 in January, 2003.
22 (d) Expenditures from Income Tax Refund Fund.
23 (1) Beginning January 1, 1989, money in the Income Tax
24 Refund Fund shall be expended exclusively for the purpose
25 of paying refunds resulting from overpayment of tax
26 liability under Section 201 of this Act, for paying rebates

SB2199- 9 -LRB100 12245 HLH 24763 b
1 under Section 208.1 in the event that the amounts in the
2 Homeowners' Tax Relief Fund are insufficient for that
3 purpose, and for making transfers pursuant to this
4 subsection (d).
5 (2) The Director shall order payment of refunds
6 resulting from overpayment of tax liability under Section
7 201 of this Act from the Income Tax Refund Fund only to the
8 extent that amounts collected pursuant to Section 201 of
9 this Act and transfers pursuant to this subsection (d) and
10 item (3) of subsection (c) have been deposited and retained
11 in the Fund.
12 (3) As soon as possible after the end of each fiscal
13 year, the Director shall order transferred and the State
14 Treasurer and State Comptroller shall transfer from the
15 Income Tax Refund Fund to the Personal Property Tax
16 Replacement Fund an amount, certified by the Director to
17 the Comptroller, equal to the excess of the amount
18 collected pursuant to subsections (c) and (d) of Section
19 201 of this Act deposited into the Income Tax Refund Fund
20 during the fiscal year over the amount of refunds resulting
21 from overpayment of tax liability under subsections (c) and
22 (d) of Section 201 of this Act paid from the Income Tax
23 Refund Fund during the fiscal year.
24 (4) As soon as possible after the end of each fiscal
25 year, the Director shall order transferred and the State
26 Treasurer and State Comptroller shall transfer from the

SB2199- 10 -LRB100 12245 HLH 24763 b
1 Personal Property Tax Replacement Fund to the Income Tax
2 Refund Fund an amount, certified by the Director to the
3 Comptroller, equal to the excess of the amount of refunds
4 resulting from overpayment of tax liability under
5 subsections (c) and (d) of Section 201 of this Act paid
6 from the Income Tax Refund Fund during the fiscal year over
7 the amount collected pursuant to subsections (c) and (d) of
8 Section 201 of this Act deposited into the Income Tax
9 Refund Fund during the fiscal year.
10 (4.5) As soon as possible after the end of fiscal year
11 1999 and of each fiscal year thereafter, the Director shall
12 order transferred and the State Treasurer and State
13 Comptroller shall transfer from the Income Tax Refund Fund
14 to the General Revenue Fund any surplus remaining in the
15 Income Tax Refund Fund as of the end of such fiscal year;
16 excluding for fiscal years 2000, 2001, and 2002 amounts
17 attributable to transfers under item (3) of subsection (c)
18 less refunds resulting from the earned income tax credit.
19 (5) This Act shall constitute an irrevocable and
20 continuing appropriation from the Income Tax Refund Fund
21 for the purpose of paying refunds upon the order of the
22 Director in accordance with the provisions of this Section.
23 (e) Deposits into the Education Assistance Fund and the
24Income Tax Surcharge Local Government Distributive Fund.
25 On July 1, 1991, and thereafter, of the amounts collected
26pursuant to subsections (a) and (b) of Section 201 of this Act,

SB2199- 11 -LRB100 12245 HLH 24763 b
1minus deposits into the Income Tax Refund Fund, the Department
2shall deposit 7.3% into the Education Assistance Fund in the
3State Treasury. Beginning July 1, 1991, and continuing through
4January 31, 1993, of the amounts collected pursuant to
5subsections (a) and (b) of Section 201 of the Illinois Income
6Tax Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 3.0% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9Beginning February 1, 1993 and continuing through June 30,
101993, of the amounts collected pursuant to subsections (a) and
11(b) of Section 201 of the Illinois Income Tax Act, minus
12deposits into the Income Tax Refund Fund, the Department shall
13deposit 4.4% into the Income Tax Surcharge Local Government
14Distributive Fund in the State Treasury. Beginning July 1,
151993, and continuing through June 30, 1994, of the amounts
16collected under subsections (a) and (b) of Section 201 of this
17Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 1.475% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20 (f) Deposits into the Fund for the Advancement of
21Education. Beginning February 1, 2015, the Department shall
22deposit the following portions of the revenue realized from the
23tax imposed upon individuals, trusts, and estates by
24subsections (a) and (b) of Section 201 of this Act during the
25preceding month, minus deposits into the Income Tax Refund
26Fund, into the Fund for the Advancement of Education:

SB2199- 12 -LRB100 12245 HLH 24763 b
1 (1) beginning February 1, 2015, and prior to February
2 1, 2025, 1/30; and
3 (2) beginning February 1, 2025, 1/26.
4 If the rate of tax imposed by subsection (a) and (b) of
5Section 201 is reduced pursuant to Section 201.5 of this Act,
6the Department shall not make the deposits required by this
7subsection (f) on or after the effective date of the reduction.
8 (g) Deposits into the Commitment to Human Services Fund.
9Beginning February 1, 2015, the Department shall deposit the
10following portions of the revenue realized from the tax imposed
11upon individuals, trusts, and estates by subsections (a) and
12(b) of Section 201 of this Act during the preceding month,
13minus deposits into the Income Tax Refund Fund, into the
14Commitment to Human Services Fund:
15 (1) beginning February 1, 2015, and prior to February
16 1, 2025, 1/30; and
17 (2) beginning February 1, 2025, 1/26.
18 If the rate of tax imposed by subsection (a) and (b) of
19Section 201 is reduced pursuant to Section 201.5 of this Act,
20the Department shall not make the deposits required by this
21subsection (g) on or after the effective date of the reduction.
22 (h) Deposits into the Tax Compliance and Administration
23Fund. Beginning on the first day of the first calendar month to
24occur on or after August 26, 2014 (the effective date of Public
25Act 98-1098), each month the Department shall pay into the Tax
26Compliance and Administration Fund, to be used, subject to

SB2199- 13 -LRB100 12245 HLH 24763 b
1appropriation, to fund additional auditors and compliance
2personnel at the Department, an amount equal to 1/12 of 5% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department from the tax imposed by
5subsections (a), (b), (c), and (d) of Section 201 of this Act,
6net of deposits into the Income Tax Refund Fund made from those
7cash receipts.
8(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
998-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff.
107-20-15.)
11 Section 10. The Use Tax Act is amended by changing Section
129 as follows:
13 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
14 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
15and trailers that are required to be registered with an agency
16of this State, each retailer required or authorized to collect
17the tax imposed by this Act shall pay to the Department the
18amount of such tax (except as otherwise provided) at the time
19when he is required to file his return for the period during
20which such tax was collected, less a discount of 2.1% prior to
21January 1, 1990, and 1.75% on and after January 1, 1990, or $5
22per calendar year, whichever is greater, which is allowed to
23reimburse the retailer for expenses incurred in collecting the
24tax, keeping records, preparing and filing returns, remitting

SB2199- 14 -LRB100 12245 HLH 24763 b
1the tax and supplying data to the Department on request. In the
2case of retailers who report and pay the tax on a transaction
3by transaction basis, as provided in this Section, such
4discount shall be taken with each such tax remittance instead
5of when such retailer files his periodic return. The Department
6may disallow the discount for retailers whose certificate of
7registration is revoked at the time the return is filed, but
8only if the Department's decision to revoke the certificate of
9registration has become final. A retailer need not remit that
10part of any tax collected by him to the extent that he is
11required to remit and does remit the tax imposed by the
12Retailers' Occupation Tax Act, with respect to the sale of the
13same property.
14 Where such tangible personal property is sold under a
15conditional sales contract, or under any other form of sale
16wherein the payment of the principal sum, or a part thereof, is
17extended beyond the close of the period for which the return is
18filed, the retailer, in collecting the tax (except as to motor
19vehicles, watercraft, aircraft, and trailers that are required
20to be registered with an agency of this State), may collect for
21each tax return period, only the tax applicable to that part of
22the selling price actually received during such tax return
23period.
24 Except as provided in this Section, on or before the
25twentieth day of each calendar month, such retailer shall file
26a return for the preceding calendar month. Such return shall be

SB2199- 15 -LRB100 12245 HLH 24763 b
1filed on forms prescribed by the Department and shall furnish
2such information as the Department may reasonably require.
3 The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10 1. The name of the seller;
11 2. The address of the principal place of business from
12 which he engages in the business of selling tangible
13 personal property at retail in this State;
14 3. The total amount of taxable receipts received by him
15 during the preceding calendar month from sales of tangible
16 personal property by him during such preceding calendar
17 month, including receipts from charge and time sales, but
18 less all deductions allowed by law;
19 4. The amount of credit provided in Section 2d of this
20 Act;
21 5. The amount of tax due;
22 5-5. The signature of the taxpayer; and
23 6. Such other reasonable information as the Department
24 may require.
25 If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

SB2199- 16 -LRB100 12245 HLH 24763 b
1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3 Beginning October 1, 1993, a taxpayer who has an average
4monthly tax liability of $150,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1994, a taxpayer who has
7an average monthly tax liability of $100,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1995, a taxpayer who has
10an average monthly tax liability of $50,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 2000, a taxpayer who has
13an annual tax liability of $200,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. The term "annual tax liability" shall be the
16sum of the taxpayer's liabilities under this Act, and under all
17other State and local occupation and use tax laws administered
18by the Department, for the immediately preceding calendar year.
19The term "average monthly tax liability" means the sum of the
20taxpayer's liabilities under this Act, and under all other
21State and local occupation and use tax laws administered by the
22Department, for the immediately preceding calendar year
23divided by 12. Beginning on October 1, 2002, a taxpayer who has
24a tax liability in the amount set forth in subsection (b) of
25Section 2505-210 of the Department of Revenue Law shall make
26all payments required by rules of the Department by electronic

SB2199- 17 -LRB100 12245 HLH 24763 b
1funds transfer.
2 Before August 1 of each year beginning in 1993, the
3Department shall notify all taxpayers required to make payments
4by electronic funds transfer. All taxpayers required to make
5payments by electronic funds transfer shall make those payments
6for a minimum of one year beginning on October 1.
7 Any taxpayer not required to make payments by electronic
8funds transfer may make payments by electronic funds transfer
9with the permission of the Department.
10 All taxpayers required to make payment by electronic funds
11transfer and any taxpayers authorized to voluntarily make
12payments by electronic funds transfer shall make those payments
13in the manner authorized by the Department.
14 The Department shall adopt such rules as are necessary to
15effectuate a program of electronic funds transfer and the
16requirements of this Section.
17 Before October 1, 2000, if the taxpayer's average monthly
18tax liability to the Department under this Act, the Retailers'
19Occupation Tax Act, the Service Occupation Tax Act, the Service
20Use Tax Act was $10,000 or more during the preceding 4 complete
21calendar quarters, he shall file a return with the Department
22each month by the 20th day of the month next following the
23month during which such tax liability is incurred and shall
24make payments to the Department on or before the 7th, 15th,
2522nd and last day of the month during which such liability is
26incurred. On and after October 1, 2000, if the taxpayer's

SB2199- 18 -LRB100 12245 HLH 24763 b
1average monthly tax liability to the Department under this Act,
2the Retailers' Occupation Tax Act, the Service Occupation Tax
3Act, and the Service Use Tax Act was $20,000 or more during the
4preceding 4 complete calendar quarters, he shall file a return
5with the Department each month by the 20th day of the month
6next following the month during which such tax liability is
7incurred and shall make payment to the Department on or before
8the 7th, 15th, 22nd and last day of the month during which such
9liability is incurred. If the month during which such tax
10liability is incurred began prior to January 1, 1985, each
11payment shall be in an amount equal to 1/4 of the taxpayer's
12actual liability for the month or an amount set by the
13Department not to exceed 1/4 of the average monthly liability
14of the taxpayer to the Department for the preceding 4 complete
15calendar quarters (excluding the month of highest liability and
16the month of lowest liability in such 4 quarter period). If the
17month during which such tax liability is incurred begins on or
18after January 1, 1985, and prior to January 1, 1987, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 27.5% of the taxpayer's
21liability for the same calendar month of the preceding year. If
22the month during which such tax liability is incurred begins on
23or after January 1, 1987, and prior to January 1, 1988, each
24payment shall be in an amount equal to 22.5% of the taxpayer's
25actual liability for the month or 26.25% of the taxpayer's
26liability for the same calendar month of the preceding year. If

SB2199- 19 -LRB100 12245 HLH 24763 b
1the month during which such tax liability is incurred begins on
2or after January 1, 1988, and prior to January 1, 1989, or
3begins on or after January 1, 1996, each payment shall be in an
4amount equal to 22.5% of the taxpayer's actual liability for
5the month or 25% of the taxpayer's liability for the same
6calendar month of the preceding year. If the month during which
7such tax liability is incurred begins on or after January 1,
81989, and prior to January 1, 1996, each payment shall be in an
9amount equal to 22.5% of the taxpayer's actual liability for
10the month or 25% of the taxpayer's liability for the same
11calendar month of the preceding year or 100% of the taxpayer's
12actual liability for the quarter monthly reporting period. The
13amount of such quarter monthly payments shall be credited
14against the final tax liability of the taxpayer's return for
15that month. Before October 1, 2000, once applicable, the
16requirement of the making of quarter monthly payments to the
17Department shall continue until such taxpayer's average
18monthly liability to the Department during the preceding 4
19complete calendar quarters (excluding the month of highest
20liability and the month of lowest liability) is less than
21$9,000, or until such taxpayer's average monthly liability to
22the Department as computed for each calendar quarter of the 4
23preceding complete calendar quarter period is less than
24$10,000. However, if a taxpayer can show the Department that a
25substantial change in the taxpayer's business has occurred
26which causes the taxpayer to anticipate that his average

SB2199- 20 -LRB100 12245 HLH 24763 b
1monthly tax liability for the reasonably foreseeable future
2will fall below the $10,000 threshold stated above, then such
3taxpayer may petition the Department for change in such
4taxpayer's reporting status. On and after October 1, 2000, once
5applicable, the requirement of the making of quarter monthly
6payments to the Department shall continue until such taxpayer's
7average monthly liability to the Department during the
8preceding 4 complete calendar quarters (excluding the month of
9highest liability and the month of lowest liability) is less
10than $19,000 or until such taxpayer's average monthly liability
11to the Department as computed for each calendar quarter of the
124 preceding complete calendar quarter period is less than
13$20,000. However, if a taxpayer can show the Department that a
14substantial change in the taxpayer's business has occurred
15which causes the taxpayer to anticipate that his average
16monthly tax liability for the reasonably foreseeable future
17will fall below the $20,000 threshold stated above, then such
18taxpayer may petition the Department for a change in such
19taxpayer's reporting status. The Department shall change such
20taxpayer's reporting status unless it finds that such change is
21seasonal in nature and not likely to be long term. If any such
22quarter monthly payment is not paid at the time or in the
23amount required by this Section, then the taxpayer shall be
24liable for penalties and interest on the difference between the
25minimum amount due and the amount of such quarter monthly
26payment actually and timely paid, except insofar as the

SB2199- 21 -LRB100 12245 HLH 24763 b
1taxpayer has previously made payments for that month to the
2Department in excess of the minimum payments previously due as
3provided in this Section. The Department shall make reasonable
4rules and regulations to govern the quarter monthly payment
5amount and quarter monthly payment dates for taxpayers who file
6on other than a calendar monthly basis.
7 If any such payment provided for in this Section exceeds
8the taxpayer's liabilities under this Act, the Retailers'
9Occupation Tax Act, the Service Occupation Tax Act and the
10Service Use Tax Act, as shown by an original monthly return,
11the Department shall issue to the taxpayer a credit memorandum
12no later than 30 days after the date of payment, which
13memorandum may be submitted by the taxpayer to the Department
14in payment of tax liability subsequently to be remitted by the
15taxpayer to the Department or be assigned by the taxpayer to a
16similar taxpayer under this Act, the Retailers' Occupation Tax
17Act, the Service Occupation Tax Act or the Service Use Tax Act,
18in accordance with reasonable rules and regulations to be
19prescribed by the Department, except that if such excess
20payment is shown on an original monthly return and is made
21after December 31, 1986, no credit memorandum shall be issued,
22unless requested by the taxpayer. If no such request is made,
23the taxpayer may credit such excess payment against tax
24liability subsequently to be remitted by the taxpayer to the
25Department under this Act, the Retailers' Occupation Tax Act,
26the Service Occupation Tax Act or the Service Use Tax Act, in

SB2199- 22 -LRB100 12245 HLH 24763 b
1accordance with reasonable rules and regulations prescribed by
2the Department. If the Department subsequently determines that
3all or any part of the credit taken was not actually due to the
4taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
5be reduced by 2.1% or 1.75% of the difference between the
6credit taken and that actually due, and the taxpayer shall be
7liable for penalties and interest on such difference.
8 If the retailer is otherwise required to file a monthly
9return and if the retailer's average monthly tax liability to
10the Department does not exceed $200, the Department may
11authorize his returns to be filed on a quarter annual basis,
12with the return for January, February, and March of a given
13year being due by April 20 of such year; with the return for
14April, May and June of a given year being due by July 20 of such
15year; with the return for July, August and September of a given
16year being due by October 20 of such year, and with the return
17for October, November and December of a given year being due by
18January 20 of the following year.
19 If the retailer is otherwise required to file a monthly or
20quarterly return and if the retailer's average monthly tax
21liability to the Department does not exceed $50, the Department
22may authorize his returns to be filed on an annual basis, with
23the return for a given year being due by January 20 of the
24following year.
25 Such quarter annual and annual returns, as to form and
26substance, shall be subject to the same requirements as monthly

SB2199- 23 -LRB100 12245 HLH 24763 b
1returns.
2 Notwithstanding any other provision in this Act concerning
3the time within which a retailer may file his return, in the
4case of any retailer who ceases to engage in a kind of business
5which makes him responsible for filing returns under this Act,
6such retailer shall file a final return under this Act with the
7Department not more than one month after discontinuing such
8business.
9 In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, every retailer selling this kind of
12tangible personal property shall file, with the Department,
13upon a form to be prescribed and supplied by the Department, a
14separate return for each such item of tangible personal
15property which the retailer sells, except that if, in the same
16transaction, (i) a retailer of aircraft, watercraft, motor
17vehicles or trailers transfers more than one aircraft,
18watercraft, motor vehicle or trailer to another aircraft,
19watercraft, motor vehicle or trailer retailer for the purpose
20of resale or (ii) a retailer of aircraft, watercraft, motor
21vehicles, or trailers transfers more than one aircraft,
22watercraft, motor vehicle, or trailer to a purchaser for use as
23a qualifying rolling stock as provided in Section 3-55 of this
24Act, then that seller may report the transfer of all the
25aircraft, watercraft, motor vehicles or trailers involved in
26that transaction to the Department on the same uniform

SB2199- 24 -LRB100 12245 HLH 24763 b
1invoice-transaction reporting return form. For purposes of
2this Section, "watercraft" means a Class 2, Class 3, or Class 4
3watercraft as defined in Section 3-2 of the Boat Registration
4and Safety Act, a personal watercraft, or any boat equipped
5with an inboard motor.
6 The transaction reporting return in the case of motor
7vehicles or trailers that are required to be registered with an
8agency of this State, shall be the same document as the Uniform
9Invoice referred to in Section 5-402 of the Illinois Vehicle
10Code and must show the name and address of the seller; the name
11and address of the purchaser; the amount of the selling price
12including the amount allowed by the retailer for traded-in
13property, if any; the amount allowed by the retailer for the
14traded-in tangible personal property, if any, to the extent to
15which Section 2 of this Act allows an exemption for the value
16of traded-in property; the balance payable after deducting such
17trade-in allowance from the total selling price; the amount of
18tax due from the retailer with respect to such transaction; the
19amount of tax collected from the purchaser by the retailer on
20such transaction (or satisfactory evidence that such tax is not
21due in that particular instance, if that is claimed to be the
22fact); the place and date of the sale; a sufficient
23identification of the property sold; such other information as
24is required in Section 5-402 of the Illinois Vehicle Code, and
25such other information as the Department may reasonably
26require.

SB2199- 25 -LRB100 12245 HLH 24763 b
1 The transaction reporting return in the case of watercraft
2and aircraft must show the name and address of the seller; the
3name and address of the purchaser; the amount of the selling
4price including the amount allowed by the retailer for
5traded-in property, if any; the amount allowed by the retailer
6for the traded-in tangible personal property, if any, to the
7extent to which Section 2 of this Act allows an exemption for
8the value of traded-in property; the balance payable after
9deducting such trade-in allowance from the total selling price;
10the amount of tax due from the retailer with respect to such
11transaction; the amount of tax collected from the purchaser by
12the retailer on such transaction (or satisfactory evidence that
13such tax is not due in that particular instance, if that is
14claimed to be the fact); the place and date of the sale, a
15sufficient identification of the property sold, and such other
16information as the Department may reasonably require.
17 Such transaction reporting return shall be filed not later
18than 20 days after the date of delivery of the item that is
19being sold, but may be filed by the retailer at any time sooner
20than that if he chooses to do so. The transaction reporting
21return and tax remittance or proof of exemption from the tax
22that is imposed by this Act may be transmitted to the
23Department by way of the State agency with which, or State
24officer with whom, the tangible personal property must be
25titled or registered (if titling or registration is required)
26if the Department and such agency or State officer determine

SB2199- 26 -LRB100 12245 HLH 24763 b
1that this procedure will expedite the processing of
2applications for title or registration.
3 With each such transaction reporting return, the retailer
4shall remit the proper amount of tax due (or shall submit
5satisfactory evidence that the sale is not taxable if that is
6the case), to the Department or its agents, whereupon the
7Department shall issue, in the purchaser's name, a tax receipt
8(or a certificate of exemption if the Department is satisfied
9that the particular sale is tax exempt) which such purchaser
10may submit to the agency with which, or State officer with
11whom, he must title or register the tangible personal property
12that is involved (if titling or registration is required) in
13support of such purchaser's application for an Illinois
14certificate or other evidence of title or registration to such
15tangible personal property.
16 No retailer's failure or refusal to remit tax under this
17Act precludes a user, who has paid the proper tax to the
18retailer, from obtaining his certificate of title or other
19evidence of title or registration (if titling or registration
20is required) upon satisfying the Department that such user has
21paid the proper tax (if tax is due) to the retailer. The
22Department shall adopt appropriate rules to carry out the
23mandate of this paragraph.
24 If the user who would otherwise pay tax to the retailer
25wants the transaction reporting return filed and the payment of
26tax or proof of exemption made to the Department before the

SB2199- 27 -LRB100 12245 HLH 24763 b
1retailer is willing to take these actions and such user has not
2paid the tax to the retailer, such user may certify to the fact
3of such delay by the retailer, and may (upon the Department
4being satisfied of the truth of such certification) transmit
5the information required by the transaction reporting return
6and the remittance for tax or proof of exemption directly to
7the Department and obtain his tax receipt or exemption
8determination, in which event the transaction reporting return
9and tax remittance (if a tax payment was required) shall be
10credited by the Department to the proper retailer's account
11with the Department, but without the 2.1% or 1.75% discount
12provided for in this Section being allowed. When the user pays
13the tax directly to the Department, he shall pay the tax in the
14same amount and in the same form in which it would be remitted
15if the tax had been remitted to the Department by the retailer.
16 Where a retailer collects the tax with respect to the
17selling price of tangible personal property which he sells and
18the purchaser thereafter returns such tangible personal
19property and the retailer refunds the selling price thereof to
20the purchaser, such retailer shall also refund, to the
21purchaser, the tax so collected from the purchaser. When filing
22his return for the period in which he refunds such tax to the
23purchaser, the retailer may deduct the amount of the tax so
24refunded by him to the purchaser from any other use tax which
25such retailer may be required to pay or remit to the
26Department, as shown by such return, if the amount of the tax

SB2199- 28 -LRB100 12245 HLH 24763 b
1to be deducted was previously remitted to the Department by
2such retailer. If the retailer has not previously remitted the
3amount of such tax to the Department, he is entitled to no
4deduction under this Act upon refunding such tax to the
5purchaser.
6 Any retailer filing a return under this Section shall also
7include (for the purpose of paying tax thereon) the total tax
8covered by such return upon the selling price of tangible
9personal property purchased by him at retail from a retailer,
10but as to which the tax imposed by this Act was not collected
11from the retailer filing such return, and such retailer shall
12remit the amount of such tax to the Department when filing such
13return.
14 If experience indicates such action to be practicable, the
15Department may prescribe and furnish a combination or joint
16return which will enable retailers, who are required to file
17returns hereunder and also under the Retailers' Occupation Tax
18Act, to furnish all the return information required by both
19Acts on the one form.
20 Where the retailer has more than one business registered
21with the Department under separate registration under this Act,
22such retailer may not file each return that is due as a single
23return covering all such registered businesses, but shall file
24separate returns for each such registered business.
25 Beginning January 1, 1990, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund, a special

SB2199- 29 -LRB100 12245 HLH 24763 b
1fund in the State Treasury which is hereby created, the net
2revenue realized for the preceding month from the 1% tax on
3sales of food for human consumption which is to be consumed off
4the premises where it is sold (other than alcoholic beverages,
5soft drinks and food which has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances, products classified as Class III
8medical devices by the United States Food and Drug
9Administration that are used for cancer treatment pursuant to a
10prescription, as well as any accessories and components related
11to those devices, and insulin, urine testing materials,
12syringes and needles used by diabetics.
13 Beginning January 1, 1990 and until June 30, 2017, each
14month the Department shall pay into the County and Mass Transit
15District Fund 4% of the net revenue realized for the preceding
16month from the 6.25% general rate on the selling price of
17tangible personal property which is purchased outside Illinois
18at retail from a retailer and which is titled or registered by
19an agency of this State's government. Beginning July 1, 2017,
20each month the Department shall pay into the County and Mass
21Transit District Fund 3.2% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property which is purchased outside
24Illinois at retail from a retailer and which is titled or
25registered by an agency of this State's government.
26 Beginning January 1, 1990 and until June 30, 2017, each

SB2199- 30 -LRB100 12245 HLH 24763 b
1month the Department shall pay into the State and Local Sales
2Tax Reform Fund, a special fund in the State Treasury, 20% of
3the net revenue realized for the preceding month from the 6.25%
4general rate on the selling price of tangible personal
5property, other than tangible personal property which is
6purchased outside Illinois at retail from a retailer and which
7is titled or registered by an agency of this State's
8government. Beginning July 1, 2017, each month the Department
9shall pay into the State and Local Sales Tax Reform Fund, a
10special fund in the State Treasury, 16% of the net revenue
11realized for the preceding month from the 6.25% general rate on
12the selling price of tangible personal property, other than
13tangible personal property which is purchased outside Illinois
14at retail from a retailer and which is titled or registered by
15an agency of this State's government.
16 Beginning August 1, 2000, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund 100% of the
18net revenue realized for the preceding month from the 1.25%
19rate on the selling price of motor fuel and gasohol. Beginning
20September 1, 2010 and until June 30, 2017, each month the
21Department shall pay into the State and Local Sales Tax Reform
22Fund 100% of the net revenue realized for the preceding month
23from the 1.25% rate on the selling price of sales tax holiday
24items. Beginning July 1, 2017, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 80% of the
26net revenue realized for the preceding month from the 1.25%

SB2199- 31 -LRB100 12245 HLH 24763 b
1rate on the selling price of sales tax holiday items.
2 Beginning January 1, 1990 and until June 30, 2017, each
3month the Department shall pay into the Local Government Tax
4Fund 16% of the net revenue realized for the preceding month
5from the 6.25% general rate on the selling price of tangible
6personal property which is purchased outside Illinois at retail
7from a retailer and which is titled or registered by an agency
8of this State's government. Beginning July 1, 2017, each month
9the Department shall pay into the Local Government Tax Fund
1012.8% of the net revenue realized for the preceding month from
11the 6.25% general rate on the selling price of tangible
12personal property which is purchased outside Illinois at retail
13from a retailer and which is titled or registered by an agency
14of this State's government.
15 Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22 Beginning July 1, 2011, each month the Department shall pay
23into the Clean Air Act Permit Fund 80% of the net revenue
24realized for the preceding month from the 6.25% general rate on
25the selling price of sorbents used in Illinois in the process
26of sorbent injection as used to comply with the Environmental

SB2199- 32 -LRB100 12245 HLH 24763 b
1Protection Act or the federal Clean Air Act, but the total
2payment into the Clean Air Act Permit Fund under this Act and
3the Retailers' Occupation Tax Act shall not exceed $2,000,000
4in any fiscal year.
5 Beginning July 1, 2013, each month the Department shall pay
6into the Underground Storage Tank Fund from the proceeds
7collected under this Act, the Service Use Tax Act, the Service
8Occupation Tax Act, and the Retailers' Occupation Tax Act an
9amount equal to the average monthly deficit in the Underground
10Storage Tank Fund during the prior year, as certified annually
11by the Illinois Environmental Protection Agency, but the total
12payment into the Underground Storage Tank Fund under this Act,
13the Service Use Tax Act, the Service Occupation Tax Act, and
14the Retailers' Occupation Tax Act shall not exceed $18,000,000
15in any State fiscal year. As used in this paragraph, the
16"average monthly deficit" shall be equal to the difference
17between the average monthly claims for payment by the fund and
18the average monthly revenues deposited into the fund, excluding
19payments made pursuant to this paragraph.
20 Beginning July 1, 2015, of the remainder of the moneys
21received by the Department under this Act, the Service Use Tax
22Act, the Service Occupation Tax Act, and the Retailers'
23Occupation Tax Act, each month the Department shall deposit
24$500,000 into the State Crime Laboratory Fund.
25 Of the remainder of the moneys received by the Department
26pursuant to this Act, (a) 1.75% thereof shall be paid into the

SB2199- 33 -LRB100 12245 HLH 24763 b
1Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2and after July 1, 1989, 3.8% thereof shall be paid into the
3Build Illinois Fund; provided, however, that if in any fiscal
4year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5may be, of the moneys received by the Department and required
6to be paid into the Build Illinois Fund pursuant to Section 3
7of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
8Act, Section 9 of the Service Use Tax Act, and Section 9 of the
9Service Occupation Tax Act, such Acts being hereinafter called
10the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
11may be, of moneys being hereinafter called the "Tax Act
12Amount", and (2) the amount transferred to the Build Illinois
13Fund from the State and Local Sales Tax Reform Fund shall be
14less than the Annual Specified Amount (as defined in Section 3
15of the Retailers' Occupation Tax Act), an amount equal to the
16difference shall be immediately paid into the Build Illinois
17Fund from other moneys received by the Department pursuant to
18the Tax Acts; and further provided, that if on the last
19business day of any month the sum of (1) the Tax Act Amount
20required to be deposited into the Build Illinois Bond Account
21in the Build Illinois Fund during such month and (2) the amount
22transferred during such month to the Build Illinois Fund from
23the State and Local Sales Tax Reform Fund shall have been less
24than 1/12 of the Annual Specified Amount, an amount equal to
25the difference shall be immediately paid into the Build
26Illinois Fund from other moneys received by the Department

SB2199- 34 -LRB100 12245 HLH 24763 b
1pursuant to the Tax Acts; and, further provided, that in no
2event shall the payments required under the preceding proviso
3result in aggregate payments into the Build Illinois Fund
4pursuant to this clause (b) for any fiscal year in excess of
5the greater of (i) the Tax Act Amount or (ii) the Annual
6Specified Amount for such fiscal year; and, further provided,
7that the amounts payable into the Build Illinois Fund under
8this clause (b) shall be payable only until such time as the
9aggregate amount on deposit under each trust indenture securing
10Bonds issued and outstanding pursuant to the Build Illinois
11Bond Act is sufficient, taking into account any future
12investment income, to fully provide, in accordance with such
13indenture, for the defeasance of or the payment of the
14principal of, premium, if any, and interest on the Bonds
15secured by such indenture and on any Bonds expected to be
16issued thereafter and all fees and costs payable with respect
17thereto, all as certified by the Director of the Bureau of the
18Budget (now Governor's Office of Management and Budget). If on
19the last business day of any month in which Bonds are
20outstanding pursuant to the Build Illinois Bond Act, the
21aggregate of the moneys deposited in the Build Illinois Bond
22Account in the Build Illinois Fund in such month shall be less
23than the amount required to be transferred in such month from
24the Build Illinois Bond Account to the Build Illinois Bond
25Retirement and Interest Fund pursuant to Section 13 of the
26Build Illinois Bond Act, an amount equal to such deficiency

SB2199- 35 -LRB100 12245 HLH 24763 b
1shall be immediately paid from other moneys received by the
2Department pursuant to the Tax Acts to the Build Illinois Fund;
3provided, however, that any amounts paid to the Build Illinois
4Fund in any fiscal year pursuant to this sentence shall be
5deemed to constitute payments pursuant to clause (b) of the
6preceding sentence and shall reduce the amount otherwise
7payable for such fiscal year pursuant to clause (b) of the
8preceding sentence. The moneys received by the Department
9pursuant to this Act and required to be deposited into the
10Build Illinois Fund are subject to the pledge, claim and charge
11set forth in Section 12 of the Build Illinois Bond Act.
12 Subject to payment of amounts into the Build Illinois Fund
13as provided in the preceding paragraph or in any amendment
14thereto hereafter enacted, the following specified monthly
15installment of the amount requested in the certificate of the
16Chairman of the Metropolitan Pier and Exposition Authority
17provided under Section 8.25f of the State Finance Act, but not
18in excess of the sums designated as "Total Deposit", shall be
19deposited in the aggregate from collections under Section 9 of
20the Use Tax Act, Section 9 of the Service Use Tax Act, Section
219 of the Service Occupation Tax Act, and Section 3 of the
22Retailers' Occupation Tax Act into the McCormick Place
23Expansion Project Fund in the specified fiscal years.
24Fiscal YearTotal Deposit
251993 $0
261994 53,000,000

SB2199- 36 -LRB100 12245 HLH 24763 b
11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

SB2199- 37 -LRB100 12245 HLH 24763 b
12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21 Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

SB2199- 38 -LRB100 12245 HLH 24763 b
1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8 Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16 Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

SB2199- 39 -LRB100 12245 HLH 24763 b
1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3 Subject to payment of amounts into the Build Illinois Fund,
4the McCormick Place Expansion Project Fund, the Illinois Tax
5Increment Fund, and the Energy Infrastructure Fund pursuant to
6the preceding paragraphs or in any amendments to this Section
7hereafter enacted, beginning on the first day of the first
8calendar month to occur on or after August 26, 2014 (the
9effective date of Public Act 98-1098) this amendatory Act of
10the 98th General Assembly, each month, from the collections
11made under Section 9 of the Use Tax Act, Section 9 of the
12Service Use Tax Act, Section 9 of the Service Occupation Tax
13Act, and Section 3 of the Retailers' Occupation Tax Act, the
14Department shall pay into the Tax Compliance and Administration
15Fund, to be used, subject to appropriation, to fund additional
16auditors and compliance personnel at the Department of Revenue,
17an amount equal to 1/12 of 5% of 80% of the cash receipts
18collected during the preceding fiscal year by the Audit Bureau
19of the Department under the Use Tax Act, the Service Use Tax
20Act, the Service Occupation Tax Act, the Retailers' Occupation
21Tax Act, and associated local occupation and use taxes
22administered by the Department.
23 Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25Treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

SB2199- 40 -LRB100 12245 HLH 24763 b
1the monthly transfer from the General Revenue Fund in
2accordance with Section 8a of the State Finance Act.
3 As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10 Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to such
19sales, if the retailers who are affected do not make written
20objection to the Department to this arrangement.
21(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2298-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
238-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
24eff. 1-27-17; revised 2-3-17.)
25 Section 15. The Service Use Tax Act is amended by changing

SB2199- 41 -LRB100 12245 HLH 24763 b
1Section 9 as follows:
2 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
3 Sec. 9. Each serviceman required or authorized to collect
4the tax herein imposed shall pay to the Department the amount
5of such tax (except as otherwise provided) at the time when he
6is required to file his return for the period during which such
7tax was collected, less a discount of 2.1% prior to January 1,
81990 and 1.75% on and after January 1, 1990, or $5 per calendar
9year, whichever is greater, which is allowed to reimburse the
10serviceman for expenses incurred in collecting the tax, keeping
11records, preparing and filing returns, remitting the tax and
12supplying data to the Department on request. The Department may
13disallow the discount for servicemen whose certificate of
14registration is revoked at the time the return is filed, but
15only if the Department's decision to revoke the certificate of
16registration has become final. A serviceman need not remit that
17part of any tax collected by him to the extent that he is
18required to pay and does pay the tax imposed by the Service
19Occupation Tax Act with respect to his sale of service
20involving the incidental transfer by him of the same property.
21 Except as provided hereinafter in this Section, on or
22before the twentieth day of each calendar month, such
23serviceman shall file a return for the preceding calendar month
24in accordance with reasonable Rules and Regulations to be
25promulgated by the Department. Such return shall be filed on a

SB2199- 42 -LRB100 12245 HLH 24763 b
1form prescribed by the Department and shall contain such
2information as the Department may reasonably require.
3 The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10 1. The name of the seller;
11 2. The address of the principal place of business from
12 which he engages in business as a serviceman in this State;
13 3. The total amount of taxable receipts received by him
14 during the preceding calendar month, including receipts
15 from charge and time sales, but less all deductions allowed
16 by law;
17 4. The amount of credit provided in Section 2d of this
18 Act;
19 5. The amount of tax due;
20 5-5. The signature of the taxpayer; and
21 6. Such other reasonable information as the Department
22 may require.
23 If a taxpayer fails to sign a return within 30 days after
24the proper notice and demand for signature by the Department,
25the return shall be considered valid and any amount shown to be
26due on the return shall be deemed assessed.

SB2199- 43 -LRB100 12245 HLH 24763 b
1 Beginning October 1, 1993, a taxpayer who has an average
2monthly tax liability of $150,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1994, a taxpayer who has
5an average monthly tax liability of $100,000 or more shall make
6all payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 1995, a taxpayer who has
8an average monthly tax liability of $50,000 or more shall make
9all payments required by rules of the Department by electronic
10funds transfer. Beginning October 1, 2000, a taxpayer who has
11an annual tax liability of $200,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. The term "annual tax liability" shall be the
14sum of the taxpayer's liabilities under this Act, and under all
15other State and local occupation and use tax laws administered
16by the Department, for the immediately preceding calendar year.
17The term "average monthly tax liability" means the sum of the
18taxpayer's liabilities under this Act, and under all other
19State and local occupation and use tax laws administered by the
20Department, for the immediately preceding calendar year
21divided by 12. Beginning on October 1, 2002, a taxpayer who has
22a tax liability in the amount set forth in subsection (b) of
23Section 2505-210 of the Department of Revenue Law shall make
24all payments required by rules of the Department by electronic
25funds transfer.
26 Before August 1 of each year beginning in 1993, the

SB2199- 44 -LRB100 12245 HLH 24763 b
1Department shall notify all taxpayers required to make payments
2by electronic funds transfer. All taxpayers required to make
3payments by electronic funds transfer shall make those payments
4for a minimum of one year beginning on October 1.
5 Any taxpayer not required to make payments by electronic
6funds transfer may make payments by electronic funds transfer
7with the permission of the Department.
8 All taxpayers required to make payment by electronic funds
9transfer and any taxpayers authorized to voluntarily make
10payments by electronic funds transfer shall make those payments
11in the manner authorized by the Department.
12 The Department shall adopt such rules as are necessary to
13effectuate a program of electronic funds transfer and the
14requirements of this Section.
15 If the serviceman is otherwise required to file a monthly
16return and if the serviceman's average monthly tax liability to
17the Department does not exceed $200, the Department may
18authorize his returns to be filed on a quarter annual basis,
19with the return for January, February and March of a given year
20being due by April 20 of such year; with the return for April,
21May and June of a given year being due by July 20 of such year;
22with the return for July, August and September of a given year
23being due by October 20 of such year, and with the return for
24October, November and December of a given year being due by
25January 20 of the following year.
26 If the serviceman is otherwise required to file a monthly

SB2199- 45 -LRB100 12245 HLH 24763 b
1or quarterly return and if the serviceman's average monthly tax
2liability to the Department does not exceed $50, the Department
3may authorize his returns to be filed on an annual basis, with
4the return for a given year being due by January 20 of the
5following year.
6 Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as monthly
8returns.
9 Notwithstanding any other provision in this Act concerning
10the time within which a serviceman may file his return, in the
11case of any serviceman who ceases to engage in a kind of
12business which makes him responsible for filing returns under
13this Act, such serviceman shall file a final return under this
14Act with the Department not more than 1 month after
15discontinuing such business.
16 Where a serviceman collects the tax with respect to the
17selling price of property which he sells and the purchaser
18thereafter returns such property and the serviceman refunds the
19selling price thereof to the purchaser, such serviceman shall
20also refund, to the purchaser, the tax so collected from the
21purchaser. When filing his return for the period in which he
22refunds such tax to the purchaser, the serviceman may deduct
23the amount of the tax so refunded by him to the purchaser from
24any other Service Use Tax, Service Occupation Tax, retailers'
25occupation tax or use tax which such serviceman may be required
26to pay or remit to the Department, as shown by such return,

SB2199- 46 -LRB100 12245 HLH 24763 b
1provided that the amount of the tax to be deducted shall
2previously have been remitted to the Department by such
3serviceman. If the serviceman shall not previously have
4remitted the amount of such tax to the Department, he shall be
5entitled to no deduction hereunder upon refunding such tax to
6the purchaser.
7 Any serviceman filing a return hereunder shall also include
8the total tax upon the selling price of tangible personal
9property purchased for use by him as an incident to a sale of
10service, and such serviceman shall remit the amount of such tax
11to the Department when filing such return.
12 If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable servicemen, who are required to file
15returns hereunder and also under the Service Occupation Tax
16Act, to furnish all the return information required by both
17Acts on the one form.
18 Where the serviceman has more than one business registered
19with the Department under separate registration hereunder,
20such serviceman shall not file each return that is due as a
21single return covering all such registered businesses, but
22shall file separate returns for each such registered business.
23 Beginning January 1, 1990, each month the Department shall
24pay into the State and Local Tax Reform Fund, a special fund in
25the State Treasury, the net revenue realized for the preceding
26month from the 1% tax on sales of food for human consumption

SB2199- 47 -LRB100 12245 HLH 24763 b
1which is to be consumed off the premises where it is sold
2(other than alcoholic beverages, soft drinks and food which has
3been prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances, products
5classified as Class III medical devices, by the United States
6Food and Drug Administration that are used for cancer treatment
7pursuant to a prescription, as well as any accessories and
8components related to those devices, and insulin, urine testing
9materials, syringes and needles used by diabetics.
10 Beginning January 1, 1990 and until June 30, 2017, each
11month the Department shall pay into the State and Local Sales
12Tax Reform Fund 20% of the net revenue realized for the
13preceding month from the 6.25% general rate on transfers of
14tangible personal property, other than tangible personal
15property which is purchased outside Illinois at retail from a
16retailer and which is titled or registered by an agency of this
17State's government. Beginning July 1, 2017, each month the
18Department shall pay into the State and Local Sales Tax Reform
19Fund 16% of the net revenue realized for the preceding month
20from the 6.25% general rate on transfers of tangible personal
21property, other than tangible personal property which is
22purchased outside Illinois at retail from a retailer and which
23is titled or registered by an agency of this State's
24government.
25 Beginning August 1, 2000, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund 100% of the

SB2199- 48 -LRB100 12245 HLH 24763 b
1net revenue realized for the preceding month from the 1.25%
2rate on the selling price of motor fuel and gasohol.
3 Beginning October 1, 2009, each month the Department shall
4pay into the Capital Projects Fund an amount that is equal to
5an amount estimated by the Department to represent 80% of the
6net revenue realized for the preceding month from the sale of
7candy, grooming and hygiene products, and soft drinks that had
8been taxed at a rate of 1% prior to September 1, 2009 but that
9are now taxed at 6.25%.
10 Beginning July 1, 2013, each month the Department shall pay
11into the Underground Storage Tank Fund from the proceeds
12collected under this Act, the Use Tax Act, the Service
13Occupation Tax Act, and the Retailers' Occupation Tax Act an
14amount equal to the average monthly deficit in the Underground
15Storage Tank Fund during the prior year, as certified annually
16by the Illinois Environmental Protection Agency, but the total
17payment into the Underground Storage Tank Fund under this Act,
18the Use Tax Act, the Service Occupation Tax Act, and the
19Retailers' Occupation Tax Act shall not exceed $18,000,000 in
20any State fiscal year. As used in this paragraph, the "average
21monthly deficit" shall be equal to the difference between the
22average monthly claims for payment by the fund and the average
23monthly revenues deposited into the fund, excluding payments
24made pursuant to this paragraph.
25 Beginning July 1, 2015, of the remainder of the moneys
26received by the Department under the Use Tax Act, this Act, the

SB2199- 49 -LRB100 12245 HLH 24763 b
1Service Occupation Tax Act, and the Retailers' Occupation Tax
2Act, each month the Department shall deposit $500,000 into the
3State Crime Laboratory Fund.
4 Of the remainder of the moneys received by the Department
5pursuant to this Act, (a) 1.75% thereof shall be paid into the
6Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7and after July 1, 1989, 3.8% thereof shall be paid into the
8Build Illinois Fund; provided, however, that if in any fiscal
9year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10may be, of the moneys received by the Department and required
11to be paid into the Build Illinois Fund pursuant to Section 3
12of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
13Act, Section 9 of the Service Use Tax Act, and Section 9 of the
14Service Occupation Tax Act, such Acts being hereinafter called
15the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
16may be, of moneys being hereinafter called the "Tax Act
17Amount", and (2) the amount transferred to the Build Illinois
18Fund from the State and Local Sales Tax Reform Fund shall be
19less than the Annual Specified Amount (as defined in Section 3
20of the Retailers' Occupation Tax Act), an amount equal to the
21difference shall be immediately paid into the Build Illinois
22Fund from other moneys received by the Department pursuant to
23the Tax Acts; and further provided, that if on the last
24business day of any month the sum of (1) the Tax Act Amount
25required to be deposited into the Build Illinois Bond Account
26in the Build Illinois Fund during such month and (2) the amount

SB2199- 50 -LRB100 12245 HLH 24763 b
1transferred during such month to the Build Illinois Fund from
2the State and Local Sales Tax Reform Fund shall have been less
3than 1/12 of the Annual Specified Amount, an amount equal to
4the difference shall be immediately paid into the Build
5Illinois Fund from other moneys received by the Department
6pursuant to the Tax Acts; and, further provided, that in no
7event shall the payments required under the preceding proviso
8result in aggregate payments into the Build Illinois Fund
9pursuant to this clause (b) for any fiscal year in excess of
10the greater of (i) the Tax Act Amount or (ii) the Annual
11Specified Amount for such fiscal year; and, further provided,
12that the amounts payable into the Build Illinois Fund under
13this clause (b) shall be payable only until such time as the
14aggregate amount on deposit under each trust indenture securing
15Bonds issued and outstanding pursuant to the Build Illinois
16Bond Act is sufficient, taking into account any future
17investment income, to fully provide, in accordance with such
18indenture, for the defeasance of or the payment of the
19principal of, premium, if any, and interest on the Bonds
20secured by such indenture and on any Bonds expected to be
21issued thereafter and all fees and costs payable with respect
22thereto, all as certified by the Director of the Bureau of the
23Budget (now Governor's Office of Management and Budget). If on
24the last business day of any month in which Bonds are
25outstanding pursuant to the Build Illinois Bond Act, the
26aggregate of the moneys deposited in the Build Illinois Bond

SB2199- 51 -LRB100 12245 HLH 24763 b
1Account in the Build Illinois Fund in such month shall be less
2than the amount required to be transferred in such month from
3the Build Illinois Bond Account to the Build Illinois Bond
4Retirement and Interest Fund pursuant to Section 13 of the
5Build Illinois Bond Act, an amount equal to such deficiency
6shall be immediately paid from other moneys received by the
7Department pursuant to the Tax Acts to the Build Illinois Fund;
8provided, however, that any amounts paid to the Build Illinois
9Fund in any fiscal year pursuant to this sentence shall be
10deemed to constitute payments pursuant to clause (b) of the
11preceding sentence and shall reduce the amount otherwise
12payable for such fiscal year pursuant to clause (b) of the
13preceding sentence. The moneys received by the Department
14pursuant to this Act and required to be deposited into the
15Build Illinois Fund are subject to the pledge, claim and charge
16set forth in Section 12 of the Build Illinois Bond Act.
17 Subject to payment of amounts into the Build Illinois Fund
18as provided in the preceding paragraph or in any amendment
19thereto hereafter enacted, the following specified monthly
20installment of the amount requested in the certificate of the
21Chairman of the Metropolitan Pier and Exposition Authority
22provided under Section 8.25f of the State Finance Act, but not
23in excess of the sums designated as "Total Deposit", shall be
24deposited in the aggregate from collections under Section 9 of
25the Use Tax Act, Section 9 of the Service Use Tax Act, Section
269 of the Service Occupation Tax Act, and Section 3 of the

SB2199- 52 -LRB100 12245 HLH 24763 b
1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
3Fiscal YearTotal Deposit
41993 $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000

SB2199- 53 -LRB100 12245 HLH 24763 b
12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021246,000,000
82022260,000,000
92023275,000,000
102024 275,000,000
112025 275,000,000
122026 279,000,000
132027 292,000,000
142028 307,000,000
152029 322,000,000
162030 338,000,000
172031 350,000,000
182032 350,000,000
19and
20each fiscal year
21thereafter that bonds
22are outstanding under
23Section 13.2 of the
24Metropolitan Pier and
25Exposition Authority Act,
26but not after fiscal year 2060.

SB2199- 54 -LRB100 12245 HLH 24763 b
1 Beginning July 20, 1993 and in each month of each fiscal
2year thereafter, one-eighth of the amount requested in the
3certificate of the Chairman of the Metropolitan Pier and
4Exposition Authority for that fiscal year, less the amount
5deposited into the McCormick Place Expansion Project Fund by
6the State Treasurer in the respective month under subsection
7(g) of Section 13 of the Metropolitan Pier and Exposition
8Authority Act, plus cumulative deficiencies in the deposits
9required under this Section for previous months and years,
10shall be deposited into the McCormick Place Expansion Project
11Fund, until the full amount requested for the fiscal year, but
12not in excess of the amount specified above as "Total Deposit",
13has been deposited.
14 Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning July 1, 1993 and ending on September 30,
182013, the Department shall each month pay into the Illinois Tax
19Increment Fund 0.27% of 80% of the net revenue realized for the
20preceding month from the 6.25% general rate on the selling
21price of tangible personal property.
22 Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning with the receipt of the first report of
26taxes paid by an eligible business and continuing for a 25-year

SB2199- 55 -LRB100 12245 HLH 24763 b
1period, the Department shall each month pay into the Energy
2Infrastructure Fund 80% of the net revenue realized from the
36.25% general rate on the selling price of Illinois-mined coal
4that was sold to an eligible business. For purposes of this
5paragraph, the term "eligible business" means a new electric
6generating facility certified pursuant to Section 605-332 of
7the Department of Commerce and Economic Opportunity Law of the
8Civil Administrative Code of Illinois.
9 Subject to payment of amounts into the Build Illinois Fund,
10the McCormick Place Expansion Project Fund, the Illinois Tax
11Increment Fund, and the Energy Infrastructure Fund pursuant to
12the preceding paragraphs or in any amendments to this Section
13hereafter enacted, beginning on the first day of the first
14calendar month to occur on or after the effective date of this
15amendatory Act of the 98th General Assembly, each month, from
16the collections made under Section 9 of the Use Tax Act,
17Section 9 of the Service Use Tax Act, Section 9 of the Service
18Occupation Tax Act, and Section 3 of the Retailers' Occupation
19Tax Act, the Department shall pay into the Tax Compliance and
20Administration Fund, to be used, subject to appropriation, to
21fund additional auditors and compliance personnel at the
22Department of Revenue, an amount equal to 1/12 of 5% of 80% of
23the cash receipts collected during the preceding fiscal year by
24the Audit Bureau of the Department under the Use Tax Act, the
25Service Use Tax Act, the Service Occupation Tax Act, the
26Retailers' Occupation Tax Act, and associated local occupation

SB2199- 56 -LRB100 12245 HLH 24763 b
1and use taxes administered by the Department.
2 Of the remainder of the moneys received by the Department
3pursuant to this Act, 75% thereof shall be paid into the
4General Revenue Fund of the State Treasury and 25% shall be
5reserved in a special account and used only for the transfer to
6the Common School Fund as part of the monthly transfer from the
7General Revenue Fund in accordance with Section 8a of the State
8Finance Act.
9 As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16 Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2198-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2298-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
238-19-16.)
24 Section 20. The Service Occupation Tax Act is amended by
25changing Section 9 as follows:

SB2199- 57 -LRB100 12245 HLH 24763 b
1 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
2 Sec. 9. Each serviceman required or authorized to collect
3the tax herein imposed shall pay to the Department the amount
4of such tax at the time when he is required to file his return
5for the period during which such tax was collectible, less a
6discount of 2.1% prior to January 1, 1990, and 1.75% on and
7after January 1, 1990, or $5 per calendar year, whichever is
8greater, which is allowed to reimburse the serviceman for
9expenses incurred in collecting the tax, keeping records,
10preparing and filing returns, remitting the tax and supplying
11data to the Department on request. The Department may disallow
12the discount for servicemen whose certificate of registration
13is revoked at the time the return is filed, but only if the
14Department's decision to revoke the certificate of
15registration has become final.
16 Where such tangible personal property is sold under a
17conditional sales contract, or under any other form of sale
18wherein the payment of the principal sum, or a part thereof, is
19extended beyond the close of the period for which the return is
20filed, the serviceman, in collecting the tax may collect, for
21each tax return period, only the tax applicable to the part of
22the selling price actually received during such tax return
23period.
24 Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such

SB2199- 58 -LRB100 12245 HLH 24763 b
1serviceman shall file a return for the preceding calendar month
2in accordance with reasonable rules and regulations to be
3promulgated by the Department of Revenue. Such return shall be
4filed on a form prescribed by the Department and shall contain
5such information as the Department may reasonably require.
6 The Department may require returns to be filed on a
7quarterly basis. If so required, a return for each calendar
8quarter shall be filed on or before the twentieth day of the
9calendar month following the end of such calendar quarter. The
10taxpayer shall also file a return with the Department for each
11of the first two months of each calendar quarter, on or before
12the twentieth day of the following calendar month, stating:
13 1. The name of the seller;
14 2. The address of the principal place of business from
15 which he engages in business as a serviceman in this State;
16 3. The total amount of taxable receipts received by him
17 during the preceding calendar month, including receipts
18 from charge and time sales, but less all deductions allowed
19 by law;
20 4. The amount of credit provided in Section 2d of this
21 Act;
22 5. The amount of tax due;
23 5-5. The signature of the taxpayer; and
24 6. Such other reasonable information as the Department
25 may require.
26 If a taxpayer fails to sign a return within 30 days after

SB2199- 59 -LRB100 12245 HLH 24763 b
1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4 Prior to October 1, 2003, and on and after September 1,
52004 a serviceman may accept a Manufacturer's Purchase Credit
6certification from a purchaser in satisfaction of Service Use
7Tax as provided in Section 3-70 of the Service Use Tax Act if
8the purchaser provides the appropriate documentation as
9required by Section 3-70 of the Service Use Tax Act. A
10Manufacturer's Purchase Credit certification, accepted prior
11to October 1, 2003 or on or after September 1, 2004 by a
12serviceman as provided in Section 3-70 of the Service Use Tax
13Act, may be used by that serviceman to satisfy Service
14Occupation Tax liability in the amount claimed in the
15certification, not to exceed 6.25% of the receipts subject to
16tax from a qualifying purchase. A Manufacturer's Purchase
17Credit reported on any original or amended return filed under
18this Act after October 20, 2003 for reporting periods prior to
19September 1, 2004 shall be disallowed. Manufacturer's Purchase
20Credit reported on annual returns due on or after January 1,
212005 will be disallowed for periods prior to September 1, 2004.
22No Manufacturer's Purchase Credit may be used after September
2330, 2003 through August 31, 2004 to satisfy any tax liability
24imposed under this Act, including any audit liability.
25 If the serviceman's average monthly tax liability to the
26Department does not exceed $200, the Department may authorize

SB2199- 60 -LRB100 12245 HLH 24763 b
1his returns to be filed on a quarter annual basis, with the
2return for January, February and March of a given year being
3due by April 20 of such year; with the return for April, May
4and June of a given year being due by July 20 of such year; with
5the return for July, August and September of a given year being
6due by October 20 of such year, and with the return for
7October, November and December of a given year being due by
8January 20 of the following year.
9 If the serviceman's average monthly tax liability to the
10Department does not exceed $50, the Department may authorize
11his returns to be filed on an annual basis, with the return for
12a given year being due by January 20 of the following year.
13 Such quarter annual and annual returns, as to form and
14substance, shall be subject to the same requirements as monthly
15returns.
16 Notwithstanding any other provision in this Act concerning
17the time within which a serviceman may file his return, in the
18case of any serviceman who ceases to engage in a kind of
19business which makes him responsible for filing returns under
20this Act, such serviceman shall file a final return under this
21Act with the Department not more than 1 month after
22discontinuing such business.
23 Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

SB2199- 61 -LRB100 12245 HLH 24763 b
1an average monthly tax liability of $100,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1995, a taxpayer who has
4an average monthly tax liability of $50,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 2000, a taxpayer who has
7an annual tax liability of $200,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. The term "annual tax liability" shall be the
10sum of the taxpayer's liabilities under this Act, and under all
11other State and local occupation and use tax laws administered
12by the Department, for the immediately preceding calendar year.
13The term "average monthly tax liability" means the sum of the
14taxpayer's liabilities under this Act, and under all other
15State and local occupation and use tax laws administered by the
16Department, for the immediately preceding calendar year
17divided by 12. Beginning on October 1, 2002, a taxpayer who has
18a tax liability in the amount set forth in subsection (b) of
19Section 2505-210 of the Department of Revenue Law shall make
20all payments required by rules of the Department by electronic
21funds transfer.
22 Before August 1 of each year beginning in 1993, the
23Department shall notify all taxpayers required to make payments
24by electronic funds transfer. All taxpayers required to make
25payments by electronic funds transfer shall make those payments
26for a minimum of one year beginning on October 1.

SB2199- 62 -LRB100 12245 HLH 24763 b
1 Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4 All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those payments
7in the manner authorized by the Department.
8 The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11 Where a serviceman collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the serviceman refunds the selling price thereof
15to the purchaser, such serviceman shall also refund, to the
16purchaser, the tax so collected from the purchaser. When filing
17his return for the period in which he refunds such tax to the
18purchaser, the serviceman may deduct the amount of the tax so
19refunded by him to the purchaser from any other Service
20Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
21Use Tax which such serviceman may be required to pay or remit
22to the Department, as shown by such return, provided that the
23amount of the tax to be deducted shall previously have been
24remitted to the Department by such serviceman. If the
25serviceman shall not previously have remitted the amount of
26such tax to the Department, he shall be entitled to no

SB2199- 63 -LRB100 12245 HLH 24763 b
1deduction hereunder upon refunding such tax to the purchaser.
2 If experience indicates such action to be practicable, the
3Department may prescribe and furnish a combination or joint
4return which will enable servicemen, who are required to file
5returns hereunder and also under the Retailers' Occupation Tax
6Act, the Use Tax Act or the Service Use Tax Act, to furnish all
7the return information required by all said Acts on the one
8form.
9 Where the serviceman has more than one business registered
10with the Department under separate registrations hereunder,
11such serviceman shall file separate returns for each registered
12business.
13 Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund the revenue realized for
15the preceding month from the 1% tax on sales of food for human
16consumption which is to be consumed off the premises where it
17is sold (other than alcoholic beverages, soft drinks and food
18which has been prepared for immediate consumption) and
19prescription and nonprescription medicines, drugs, medical
20appliances, products classified as Class III medical devices by
21the United States Food and Drug Administration that are used
22for cancer treatment pursuant to a prescription, as well as any
23accessories and components related to those devices, and
24insulin, urine testing materials, syringes and needles used by
25diabetics.
26 Beginning January 1, 1990 and until June 30, 2017, each

SB2199- 64 -LRB100 12245 HLH 24763 b
1month the Department shall pay into the County and Mass Transit
2District Fund 4% of the revenue realized for the preceding
3month from the 6.25% general rate. Beginning July 1, 2017, each
4month the Department shall pay into the County and Mass Transit
5District Fund 3.2% of the revenue realized for the preceding
6month from the 6.25% general rate.
7 Beginning August 1, 2000, each month the Department shall
8pay into the County and Mass Transit District Fund 20% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol.
11 Beginning January 1, 1990 and until June 30, 2017, each
12month the Department shall pay into the Local Government Tax
13Fund 16% of the revenue realized for the preceding month from
14the 6.25% general rate on transfers of tangible personal
15property. Beginning July 1, 2017, each month the Department
16shall pay into the Local Government Tax Fund 12.8% of the
17revenue realized for the preceding month from the 6.25% general
18rate on transfers of tangible personal property.
19 Beginning August 1, 2000, each month the Department shall
20pay into the Local Government Tax Fund 80% of the net revenue
21realized for the preceding month from the 1.25% rate on the
22selling price of motor fuel and gasohol.
23 Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

SB2199- 65 -LRB100 12245 HLH 24763 b
1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4 Beginning July 1, 2013, each month the Department shall pay
5into the Underground Storage Tank Fund from the proceeds
6collected under this Act, the Use Tax Act, the Service Use Tax
7Act, and the Retailers' Occupation Tax Act an amount equal to
8the average monthly deficit in the Underground Storage Tank
9Fund during the prior year, as certified annually by the
10Illinois Environmental Protection Agency, but the total
11payment into the Underground Storage Tank Fund under this Act,
12the Use Tax Act, the Service Use Tax Act, and the Retailers'
13Occupation Tax Act shall not exceed $18,000,000 in any State
14fiscal year. As used in this paragraph, the "average monthly
15deficit" shall be equal to the difference between the average
16monthly claims for payment by the fund and the average monthly
17revenues deposited into the fund, excluding payments made
18pursuant to this paragraph.
19 Beginning July 1, 2015, of the remainder of the moneys
20received by the Department under the Use Tax Act, the Service
21Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
22each month the Department shall deposit $500,000 into the State
23Crime Laboratory Fund.
24 Of the remainder of the moneys received by the Department
25pursuant to this Act, (a) 1.75% thereof shall be paid into the
26Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

SB2199- 66 -LRB100 12245 HLH 24763 b
1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to Section 3
6of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8Service Occupation Tax Act, such Acts being hereinafter called
9the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10may be, of moneys being hereinafter called the "Tax Act
11Amount", and (2) the amount transferred to the Build Illinois
12Fund from the State and Local Sales Tax Reform Fund shall be
13less than the Annual Specified Amount (as defined in Section 3
14of the Retailers' Occupation Tax Act), an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and further provided, that if on the last
18business day of any month the sum of (1) the Tax Act Amount
19required to be deposited into the Build Illinois Account in the
20Build Illinois Fund during such month and (2) the amount
21transferred during such month to the Build Illinois Fund from
22the State and Local Sales Tax Reform Fund shall have been less
23than 1/12 of the Annual Specified Amount, an amount equal to
24the difference shall be immediately paid into the Build
25Illinois Fund from other moneys received by the Department
26pursuant to the Tax Acts; and, further provided, that in no

SB2199- 67 -LRB100 12245 HLH 24763 b
1event shall the payments required under the preceding proviso
2result in aggregate payments into the Build Illinois Fund
3pursuant to this clause (b) for any fiscal year in excess of
4the greater of (i) the Tax Act Amount or (ii) the Annual
5Specified Amount for such fiscal year; and, further provided,
6that the amounts payable into the Build Illinois Fund under
7this clause (b) shall be payable only until such time as the
8aggregate amount on deposit under each trust indenture securing
9Bonds issued and outstanding pursuant to the Build Illinois
10Bond Act is sufficient, taking into account any future
11investment income, to fully provide, in accordance with such
12indenture, for the defeasance of or the payment of the
13principal of, premium, if any, and interest on the Bonds
14secured by such indenture and on any Bonds expected to be
15issued thereafter and all fees and costs payable with respect
16thereto, all as certified by the Director of the Bureau of the
17Budget (now Governor's Office of Management and Budget). If on
18the last business day of any month in which Bonds are
19outstanding pursuant to the Build Illinois Bond Act, the
20aggregate of the moneys deposited in the Build Illinois Bond
21Account in the Build Illinois Fund in such month shall be less
22than the amount required to be transferred in such month from
23the Build Illinois Bond Account to the Build Illinois Bond
24Retirement and Interest Fund pursuant to Section 13 of the
25Build Illinois Bond Act, an amount equal to such deficiency
26shall be immediately paid from other moneys received by the

SB2199- 68 -LRB100 12245 HLH 24763 b
1Department pursuant to the Tax Acts to the Build Illinois Fund;
2provided, however, that any amounts paid to the Build Illinois
3Fund in any fiscal year pursuant to this sentence shall be
4deemed to constitute payments pursuant to clause (b) of the
5preceding sentence and shall reduce the amount otherwise
6payable for such fiscal year pursuant to clause (b) of the
7preceding sentence. The moneys received by the Department
8pursuant to this Act and required to be deposited into the
9Build Illinois Fund are subject to the pledge, claim and charge
10set forth in Section 12 of the Build Illinois Bond Act.
11 Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993 $0
251994 53,000,000

SB2199- 69 -LRB100 12245 HLH 24763 b
11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

SB2199- 70 -LRB100 12245 HLH 24763 b
12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21 Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

SB2199- 71 -LRB100 12245 HLH 24763 b
1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8 Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16 Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

SB2199- 72 -LRB100 12245 HLH 24763 b
1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3 Subject to payment of amounts into the Build Illinois Fund,
4the McCormick Place Expansion Project Fund, the Illinois Tax
5Increment Fund, and the Energy Infrastructure Fund pursuant to
6the preceding paragraphs or in any amendments to this Section
7hereafter enacted, beginning on the first day of the first
8calendar month to occur on or after the effective date of this
9amendatory Act of the 98th General Assembly, each month, from
10the collections made under Section 9 of the Use Tax Act,
11Section 9 of the Service Use Tax Act, Section 9 of the Service
12Occupation Tax Act, and Section 3 of the Retailers' Occupation
13Tax Act, the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year by
18the Audit Bureau of the Department under the Use Tax Act, the
19Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22 Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% shall be paid into the General
24Revenue Fund of the State Treasury and 25% shall be reserved in
25a special account and used only for the transfer to the Common
26School Fund as part of the monthly transfer from the General

SB2199- 73 -LRB100 12245 HLH 24763 b
1Revenue Fund in accordance with Section 8a of the State Finance
2Act.
3 The Department may, upon separate written notice to a
4taxpayer, require the taxpayer to prepare and file with the
5Department on a form prescribed by the Department within not
6less than 60 days after receipt of the notice an annual
7information return for the tax year specified in the notice.
8Such annual return to the Department shall include a statement
9of gross receipts as shown by the taxpayer's last Federal
10income tax return. If the total receipts of the business as
11reported in the Federal income tax return do not agree with the
12gross receipts reported to the Department of Revenue for the
13same period, the taxpayer shall attach to his annual return a
14schedule showing a reconciliation of the 2 amounts and the
15reasons for the difference. The taxpayer's annual return to the
16Department shall also disclose the cost of goods sold by the
17taxpayer during the year covered by such return, opening and
18closing inventories of such goods for such year, cost of goods
19used from stock or taken from stock and given away by the
20taxpayer during such year, pay roll information of the
21taxpayer's business during such year and any additional
22reasonable information which the Department deems would be
23helpful in determining the accuracy of the monthly, quarterly
24or annual returns filed by such taxpayer as hereinbefore
25provided for in this Section.
26 If the annual information return required by this Section

SB2199- 74 -LRB100 12245 HLH 24763 b
1is not filed when and as required, the taxpayer shall be liable
2as follows:
3 (i) Until January 1, 1994, the taxpayer shall be liable
4 for a penalty equal to 1/6 of 1% of the tax due from such
5 taxpayer under this Act during the period to be covered by
6 the annual return for each month or fraction of a month
7 until such return is filed as required, the penalty to be
8 assessed and collected in the same manner as any other
9 penalty provided for in this Act.
10 (ii) On and after January 1, 1994, the taxpayer shall
11 be liable for a penalty as described in Section 3-4 of the
12 Uniform Penalty and Interest Act.
13 The chief executive officer, proprietor, owner or highest
14ranking manager shall sign the annual return to certify the
15accuracy of the information contained therein. Any person who
16willfully signs the annual return containing false or
17inaccurate information shall be guilty of perjury and punished
18accordingly. The annual return form prescribed by the
19Department shall include a warning that the person signing the
20return may be liable for perjury.
21 The foregoing portion of this Section concerning the filing
22of an annual information return shall not apply to a serviceman
23who is not required to file an income tax return with the
24United States Government.
25 As soon as possible after the first day of each month, upon
26certification of the Department of Revenue, the Comptroller

SB2199- 75 -LRB100 12245 HLH 24763 b
1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6 Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10 For greater simplicity of administration, it shall be
11permissible for manufacturers, importers and wholesalers whose
12products are sold by numerous servicemen in Illinois, and who
13wish to do so, to assume the responsibility for accounting and
14paying to the Department all tax accruing under this Act with
15respect to such sales, if the servicemen who are affected do
16not make written objection to the Department to this
17arrangement.
18(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1998-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2098-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
218-19-16.)
22 Section 25. The Retailers' Occupation Tax Act is amended by
23changing Section 3 as follows:
24 (35 ILCS 120/3) (from Ch. 120, par. 442)

SB2199- 76 -LRB100 12245 HLH 24763 b
1 Sec. 3. Except as provided in this Section, on or before
2the twentieth day of each calendar month, every person engaged
3in the business of selling tangible personal property at retail
4in this State during the preceding calendar month shall file a
5return with the Department, stating:
6 1. The name of the seller;
7 2. His residence address and the address of his
8 principal place of business and the address of the
9 principal place of business (if that is a different
10 address) from which he engages in the business of selling
11 tangible personal property at retail in this State;
12 3. Total amount of receipts received by him during the
13 preceding calendar month or quarter, as the case may be,
14 from sales of tangible personal property, and from services
15 furnished, by him during such preceding calendar month or
16 quarter;
17 4. Total amount received by him during the preceding
18 calendar month or quarter on charge and time sales of
19 tangible personal property, and from services furnished,
20 by him prior to the month or quarter for which the return
21 is filed;
22 5. Deductions allowed by law;
23 6. Gross receipts which were received by him during the
24 preceding calendar month or quarter and upon the basis of
25 which the tax is imposed;
26 7. The amount of credit provided in Section 2d of this

SB2199- 77 -LRB100 12245 HLH 24763 b
1 Act;
2 8. The amount of tax due;
3 9. The signature of the taxpayer; and
4 10. Such other reasonable information as the
5 Department may require.
6 If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10 Each return shall be accompanied by the statement of
11prepaid tax issued pursuant to Section 2e for which credit is
12claimed.
13 Prior to October 1, 2003, and on and after September 1,
142004 a retailer may accept a Manufacturer's Purchase Credit
15certification from a purchaser in satisfaction of Use Tax as
16provided in Section 3-85 of the Use Tax Act if the purchaser
17provides the appropriate documentation as required by Section
183-85 of the Use Tax Act. A Manufacturer's Purchase Credit
19certification, accepted by a retailer prior to October 1, 2003
20and on and after September 1, 2004 as provided in Section 3-85
21of the Use Tax Act, may be used by that retailer to satisfy
22Retailers' Occupation Tax liability in the amount claimed in
23the certification, not to exceed 6.25% of the receipts subject
24to tax from a qualifying purchase. A Manufacturer's Purchase
25Credit reported on any original or amended return filed under
26this Act after October 20, 2003 for reporting periods prior to

SB2199- 78 -LRB100 12245 HLH 24763 b
1September 1, 2004 shall be disallowed. Manufacturer's
2Purchaser Credit reported on annual returns due on or after
3January 1, 2005 will be disallowed for periods prior to
4September 1, 2004. No Manufacturer's Purchase Credit may be
5used after September 30, 2003 through August 31, 2004 to
6satisfy any tax liability imposed under this Act, including any
7audit liability.
8 The Department may require returns to be filed on a
9quarterly basis. If so required, a return for each calendar
10quarter shall be filed on or before the twentieth day of the
11calendar month following the end of such calendar quarter. The
12taxpayer shall also file a return with the Department for each
13of the first two months of each calendar quarter, on or before
14the twentieth day of the following calendar month, stating:
15 1. The name of the seller;
16 2. The address of the principal place of business from
17 which he engages in the business of selling tangible
18 personal property at retail in this State;
19 3. The total amount of taxable receipts received by him
20 during the preceding calendar month from sales of tangible
21 personal property by him during such preceding calendar
22 month, including receipts from charge and time sales, but
23 less all deductions allowed by law;
24 4. The amount of credit provided in Section 2d of this
25 Act;
26 5. The amount of tax due; and

SB2199- 79 -LRB100 12245 HLH 24763 b
1 6. Such other reasonable information as the Department
2 may require.
3 Beginning on October 1, 2003, any person who is not a
4licensed distributor, importing distributor, or manufacturer,
5as defined in the Liquor Control Act of 1934, but is engaged in
6the business of selling, at retail, alcoholic liquor shall file
7a statement with the Department of Revenue, in a format and at
8a time prescribed by the Department, showing the total amount
9paid for alcoholic liquor purchased during the preceding month
10and such other information as is reasonably required by the
11Department. The Department may adopt rules to require that this
12statement be filed in an electronic or telephonic format. Such
13rules may provide for exceptions from the filing requirements
14of this paragraph. For the purposes of this paragraph, the term
15"alcoholic liquor" shall have the meaning prescribed in the
16Liquor Control Act of 1934.
17 Beginning on October 1, 2003, every distributor, importing
18distributor, and manufacturer of alcoholic liquor as defined in
19the Liquor Control Act of 1934, shall file a statement with the
20Department of Revenue, no later than the 10th day of the month
21for the preceding month during which transactions occurred, by
22electronic means, showing the total amount of gross receipts
23from the sale of alcoholic liquor sold or distributed during
24the preceding month to purchasers; identifying the purchaser to
25whom it was sold or distributed; the purchaser's tax
26registration number; and such other information reasonably

SB2199- 80 -LRB100 12245 HLH 24763 b
1required by the Department. A distributor, importing
2distributor, or manufacturer of alcoholic liquor must
3personally deliver, mail, or provide by electronic means to
4each retailer listed on the monthly statement a report
5containing a cumulative total of that distributor's, importing
6distributor's, or manufacturer's total sales of alcoholic
7liquor to that retailer no later than the 10th day of the month
8for the preceding month during which the transaction occurred.
9The distributor, importing distributor, or manufacturer shall
10notify the retailer as to the method by which the distributor,
11importing distributor, or manufacturer will provide the sales
12information. If the retailer is unable to receive the sales
13information by electronic means, the distributor, importing
14distributor, or manufacturer shall furnish the sales
15information by personal delivery or by mail. For purposes of
16this paragraph, the term "electronic means" includes, but is
17not limited to, the use of a secure Internet website, e-mail,
18or facsimile.
19 If a total amount of less than $1 is payable, refundable or
20creditable, such amount shall be disregarded if it is less than
2150 cents and shall be increased to $1 if it is 50 cents or more.
22 Beginning October 1, 1993, a taxpayer who has an average
23monthly tax liability of $150,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1994, a taxpayer who has
26an average monthly tax liability of $100,000 or more shall make

SB2199- 81 -LRB100 12245 HLH 24763 b
1all payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1995, a taxpayer who has
3an average monthly tax liability of $50,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 2000, a taxpayer who has
6an annual tax liability of $200,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. The term "annual tax liability" shall be the
9sum of the taxpayer's liabilities under this Act, and under all
10other State and local occupation and use tax laws administered
11by the Department, for the immediately preceding calendar year.
12The term "average monthly tax liability" shall be the sum of
13the taxpayer's liabilities under this Act, and under all other
14State and local occupation and use tax laws administered by the
15Department, for the immediately preceding calendar year
16divided by 12. Beginning on October 1, 2002, a taxpayer who has
17a tax liability in the amount set forth in subsection (b) of
18Section 2505-210 of the Department of Revenue Law shall make
19all payments required by rules of the Department by electronic
20funds transfer.
21 Before August 1 of each year beginning in 1993, the
22Department shall notify all taxpayers required to make payments
23by electronic funds transfer. All taxpayers required to make
24payments by electronic funds transfer shall make those payments
25for a minimum of one year beginning on October 1.
26 Any taxpayer not required to make payments by electronic

SB2199- 82 -LRB100 12245 HLH 24763 b
1funds transfer may make payments by electronic funds transfer
2with the permission of the Department.
3 All taxpayers required to make payment by electronic funds
4transfer and any taxpayers authorized to voluntarily make
5payments by electronic funds transfer shall make those payments
6in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to
8effectuate a program of electronic funds transfer and the
9requirements of this Section.
10 Any amount which is required to be shown or reported on any
11return or other document under this Act shall, if such amount
12is not a whole-dollar amount, be increased to the nearest
13whole-dollar amount in any case where the fractional part of a
14dollar is 50 cents or more, and decreased to the nearest
15whole-dollar amount where the fractional part of a dollar is
16less than 50 cents.
17 If the retailer is otherwise required to file a monthly
18return and if the retailer's average monthly tax liability to
19the Department does not exceed $200, the Department may
20authorize his returns to be filed on a quarter annual basis,
21with the return for January, February and March of a given year
22being due by April 20 of such year; with the return for April,
23May and June of a given year being due by July 20 of such year;
24with the return for July, August and September of a given year
25being due by October 20 of such year, and with the return for
26October, November and December of a given year being due by

SB2199- 83 -LRB100 12245 HLH 24763 b
1January 20 of the following year.
2 If the retailer is otherwise required to file a monthly or
3quarterly return and if the retailer's average monthly tax
4liability with the Department does not exceed $50, the
5Department may authorize his returns to be filed on an annual
6basis, with the return for a given year being due by January 20
7of the following year.
8 Such quarter annual and annual returns, as to form and
9substance, shall be subject to the same requirements as monthly
10returns.
11 Notwithstanding any other provision in this Act concerning
12the time within which a retailer may file his return, in the
13case of any retailer who ceases to engage in a kind of business
14which makes him responsible for filing returns under this Act,
15such retailer shall file a final return under this Act with the
16Department not more than one month after discontinuing such
17business.
18 Where the same person has more than one business registered
19with the Department under separate registrations under this
20Act, such person may not file each return that is due as a
21single return covering all such registered businesses, but
22shall file separate returns for each such registered business.
23 In addition, with respect to motor vehicles, watercraft,
24aircraft, and trailers that are required to be registered with
25an agency of this State, every retailer selling this kind of
26tangible personal property shall file, with the Department,

SB2199- 84 -LRB100 12245 HLH 24763 b
1upon a form to be prescribed and supplied by the Department, a
2separate return for each such item of tangible personal
3property which the retailer sells, except that if, in the same
4transaction, (i) a retailer of aircraft, watercraft, motor
5vehicles or trailers transfers more than one aircraft,
6watercraft, motor vehicle or trailer to another aircraft,
7watercraft, motor vehicle retailer or trailer retailer for the
8purpose of resale or (ii) a retailer of aircraft, watercraft,
9motor vehicles, or trailers transfers more than one aircraft,
10watercraft, motor vehicle, or trailer to a purchaser for use as
11a qualifying rolling stock as provided in Section 2-5 of this
12Act, then that seller may report the transfer of all aircraft,
13watercraft, motor vehicles or trailers involved in that
14transaction to the Department on the same uniform
15invoice-transaction reporting return form. For purposes of
16this Section, "watercraft" means a Class 2, Class 3, or Class 4
17watercraft as defined in Section 3-2 of the Boat Registration
18and Safety Act, a personal watercraft, or any boat equipped
19with an inboard motor.
20 Any retailer who sells only motor vehicles, watercraft,
21aircraft, or trailers that are required to be registered with
22an agency of this State, so that all retailers' occupation tax
23liability is required to be reported, and is reported, on such
24transaction reporting returns and who is not otherwise required
25to file monthly or quarterly returns, need not file monthly or
26quarterly returns. However, those retailers shall be required

SB2199- 85 -LRB100 12245 HLH 24763 b
1to file returns on an annual basis.
2 The transaction reporting return, in the case of motor
3vehicles or trailers that are required to be registered with an
4agency of this State, shall be the same document as the Uniform
5Invoice referred to in Section 5-402 of The Illinois Vehicle
6Code and must show the name and address of the seller; the name
7and address of the purchaser; the amount of the selling price
8including the amount allowed by the retailer for traded-in
9property, if any; the amount allowed by the retailer for the
10traded-in tangible personal property, if any, to the extent to
11which Section 1 of this Act allows an exemption for the value
12of traded-in property; the balance payable after deducting such
13trade-in allowance from the total selling price; the amount of
14tax due from the retailer with respect to such transaction; the
15amount of tax collected from the purchaser by the retailer on
16such transaction (or satisfactory evidence that such tax is not
17due in that particular instance, if that is claimed to be the
18fact); the place and date of the sale; a sufficient
19identification of the property sold; such other information as
20is required in Section 5-402 of The Illinois Vehicle Code, and
21such other information as the Department may reasonably
22require.
23 The transaction reporting return in the case of watercraft
24or aircraft must show the name and address of the seller; the
25name and address of the purchaser; the amount of the selling
26price including the amount allowed by the retailer for

SB2199- 86 -LRB100 12245 HLH 24763 b
1traded-in property, if any; the amount allowed by the retailer
2for the traded-in tangible personal property, if any, to the
3extent to which Section 1 of this Act allows an exemption for
4the value of traded-in property; the balance payable after
5deducting such trade-in allowance from the total selling price;
6the amount of tax due from the retailer with respect to such
7transaction; the amount of tax collected from the purchaser by
8the retailer on such transaction (or satisfactory evidence that
9such tax is not due in that particular instance, if that is
10claimed to be the fact); the place and date of the sale, a
11sufficient identification of the property sold, and such other
12information as the Department may reasonably require.
13 Such transaction reporting return shall be filed not later
14than 20 days after the day of delivery of the item that is
15being sold, but may be filed by the retailer at any time sooner
16than that if he chooses to do so. The transaction reporting
17return and tax remittance or proof of exemption from the
18Illinois use tax may be transmitted to the Department by way of
19the State agency with which, or State officer with whom the
20tangible personal property must be titled or registered (if
21titling or registration is required) if the Department and such
22agency or State officer determine that this procedure will
23expedite the processing of applications for title or
24registration.
25 With each such transaction reporting return, the retailer
26shall remit the proper amount of tax due (or shall submit

SB2199- 87 -LRB100 12245 HLH 24763 b
1satisfactory evidence that the sale is not taxable if that is
2the case), to the Department or its agents, whereupon the
3Department shall issue, in the purchaser's name, a use tax
4receipt (or a certificate of exemption if the Department is
5satisfied that the particular sale is tax exempt) which such
6purchaser may submit to the agency with which, or State officer
7with whom, he must title or register the tangible personal
8property that is involved (if titling or registration is
9required) in support of such purchaser's application for an
10Illinois certificate or other evidence of title or registration
11to such tangible personal property.
12 No retailer's failure or refusal to remit tax under this
13Act precludes a user, who has paid the proper tax to the
14retailer, from obtaining his certificate of title or other
15evidence of title or registration (if titling or registration
16is required) upon satisfying the Department that such user has
17paid the proper tax (if tax is due) to the retailer. The
18Department shall adopt appropriate rules to carry out the
19mandate of this paragraph.
20 If the user who would otherwise pay tax to the retailer
21wants the transaction reporting return filed and the payment of
22the tax or proof of exemption made to the Department before the
23retailer is willing to take these actions and such user has not
24paid the tax to the retailer, such user may certify to the fact
25of such delay by the retailer and may (upon the Department
26being satisfied of the truth of such certification) transmit

SB2199- 88 -LRB100 12245 HLH 24763 b
1the information required by the transaction reporting return
2and the remittance for tax or proof of exemption directly to
3the Department and obtain his tax receipt or exemption
4determination, in which event the transaction reporting return
5and tax remittance (if a tax payment was required) shall be
6credited by the Department to the proper retailer's account
7with the Department, but without the 2.1% or 1.75% discount
8provided for in this Section being allowed. When the user pays
9the tax directly to the Department, he shall pay the tax in the
10same amount and in the same form in which it would be remitted
11if the tax had been remitted to the Department by the retailer.
12 Refunds made by the seller during the preceding return
13period to purchasers, on account of tangible personal property
14returned to the seller, shall be allowed as a deduction under
15subdivision 5 of his monthly or quarterly return, as the case
16may be, in case the seller had theretofore included the
17receipts from the sale of such tangible personal property in a
18return filed by him and had paid the tax imposed by this Act
19with respect to such receipts.
20 Where the seller is a corporation, the return filed on
21behalf of such corporation shall be signed by the president,
22vice-president, secretary or treasurer or by the properly
23accredited agent of such corporation.
24 Where the seller is a limited liability company, the return
25filed on behalf of the limited liability company shall be
26signed by a manager, member, or properly accredited agent of

SB2199- 89 -LRB100 12245 HLH 24763 b
1the limited liability company.
2 Except as provided in this Section, the retailer filing the
3return under this Section shall, at the time of filing such
4return, pay to the Department the amount of tax imposed by this
5Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6on and after January 1, 1990, or $5 per calendar year,
7whichever is greater, which is allowed to reimburse the
8retailer for the expenses incurred in keeping records,
9preparing and filing returns, remitting the tax and supplying
10data to the Department on request. Any prepayment made pursuant
11to Section 2d of this Act shall be included in the amount on
12which such 2.1% or 1.75% discount is computed. In the case of
13retailers who report and pay the tax on a transaction by
14transaction basis, as provided in this Section, such discount
15shall be taken with each such tax remittance instead of when
16such retailer files his periodic return. The Department may
17disallow the discount for retailers whose certificate of
18registration is revoked at the time the return is filed, but
19only if the Department's decision to revoke the certificate of
20registration has become final.
21 Before October 1, 2000, if the taxpayer's average monthly
22tax liability to the Department under this Act, the Use Tax
23Act, the Service Occupation Tax Act, and the Service Use Tax
24Act, excluding any liability for prepaid sales tax to be
25remitted in accordance with Section 2d of this Act, was $10,000
26or more during the preceding 4 complete calendar quarters, he

SB2199- 90 -LRB100 12245 HLH 24763 b
1shall file a return with the Department each month by the 20th
2day of the month next following the month during which such tax
3liability is incurred and shall make payments to the Department
4on or before the 7th, 15th, 22nd and last day of the month
5during which such liability is incurred. On and after October
61, 2000, if the taxpayer's average monthly tax liability to the
7Department under this Act, the Use Tax Act, the Service
8Occupation Tax Act, and the Service Use Tax Act, excluding any
9liability for prepaid sales tax to be remitted in accordance
10with Section 2d of this Act, was $20,000 or more during the
11preceding 4 complete calendar quarters, he shall file a return
12with the Department each month by the 20th day of the month
13next following the month during which such tax liability is
14incurred and shall make payment to the Department on or before
15the 7th, 15th, 22nd and last day of the month during which such
16liability is incurred. If the month during which such tax
17liability is incurred began prior to January 1, 1985, each
18payment shall be in an amount equal to 1/4 of the taxpayer's
19actual liability for the month or an amount set by the
20Department not to exceed 1/4 of the average monthly liability
21of the taxpayer to the Department for the preceding 4 complete
22calendar quarters (excluding the month of highest liability and
23the month of lowest liability in such 4 quarter period). If the
24month during which such tax liability is incurred begins on or
25after January 1, 1985 and prior to January 1, 1987, each
26payment shall be in an amount equal to 22.5% of the taxpayer's

SB2199- 91 -LRB100 12245 HLH 24763 b
1actual liability for the month or 27.5% of the taxpayer's
2liability for the same calendar month of the preceding year. If
3the month during which such tax liability is incurred begins on
4or after January 1, 1987 and prior to January 1, 1988, each
5payment shall be in an amount equal to 22.5% of the taxpayer's
6actual liability for the month or 26.25% of the taxpayer's
7liability for the same calendar month of the preceding year. If
8the month during which such tax liability is incurred begins on
9or after January 1, 1988, and prior to January 1, 1989, or
10begins on or after January 1, 1996, each payment shall be in an
11amount equal to 22.5% of the taxpayer's actual liability for
12the month or 25% of the taxpayer's liability for the same
13calendar month of the preceding year. If the month during which
14such tax liability is incurred begins on or after January 1,
151989, and prior to January 1, 1996, each payment shall be in an
16amount equal to 22.5% of the taxpayer's actual liability for
17the month or 25% of the taxpayer's liability for the same
18calendar month of the preceding year or 100% of the taxpayer's
19actual liability for the quarter monthly reporting period. The
20amount of such quarter monthly payments shall be credited
21against the final tax liability of the taxpayer's return for
22that month. Before October 1, 2000, once applicable, the
23requirement of the making of quarter monthly payments to the
24Department by taxpayers having an average monthly tax liability
25of $10,000 or more as determined in the manner provided above
26shall continue until such taxpayer's average monthly liability

SB2199- 92 -LRB100 12245 HLH 24763 b
1to the Department during the preceding 4 complete calendar
2quarters (excluding the month of highest liability and the
3month of lowest liability) is less than $9,000, or until such
4taxpayer's average monthly liability to the Department as
5computed for each calendar quarter of the 4 preceding complete
6calendar quarter period is less than $10,000. However, if a
7taxpayer can show the Department that a substantial change in
8the taxpayer's business has occurred which causes the taxpayer
9to anticipate that his average monthly tax liability for the
10reasonably foreseeable future will fall below the $10,000
11threshold stated above, then such taxpayer may petition the
12Department for a change in such taxpayer's reporting status. On
13and after October 1, 2000, once applicable, the requirement of
14the making of quarter monthly payments to the Department by
15taxpayers having an average monthly tax liability of $20,000 or
16more as determined in the manner provided above shall continue
17until such taxpayer's average monthly liability to the
18Department during the preceding 4 complete calendar quarters
19(excluding the month of highest liability and the month of
20lowest liability) is less than $19,000 or until such taxpayer's
21average monthly liability to the Department as computed for
22each calendar quarter of the 4 preceding complete calendar
23quarter period is less than $20,000. However, if a taxpayer can
24show the Department that a substantial change in the taxpayer's
25business has occurred which causes the taxpayer to anticipate
26that his average monthly tax liability for the reasonably

SB2199- 93 -LRB100 12245 HLH 24763 b
1foreseeable future will fall below the $20,000 threshold stated
2above, then such taxpayer may petition the Department for a
3change in such taxpayer's reporting status. The Department
4shall change such taxpayer's reporting status unless it finds
5that such change is seasonal in nature and not likely to be
6long term. If any such quarter monthly payment is not paid at
7the time or in the amount required by this Section, then the
8taxpayer shall be liable for penalties and interest on the
9difference between the minimum amount due as a payment and the
10amount of such quarter monthly payment actually and timely
11paid, except insofar as the taxpayer has previously made
12payments for that month to the Department in excess of the
13minimum payments previously due as provided in this Section.
14The Department shall make reasonable rules and regulations to
15govern the quarter monthly payment amount and quarter monthly
16payment dates for taxpayers who file on other than a calendar
17monthly basis.
18 The provisions of this paragraph apply before October 1,
192001. Without regard to whether a taxpayer is required to make
20quarter monthly payments as specified above, any taxpayer who
21is required by Section 2d of this Act to collect and remit
22prepaid taxes and has collected prepaid taxes which average in
23excess of $25,000 per month during the preceding 2 complete
24calendar quarters, shall file a return with the Department as
25required by Section 2f and shall make payments to the
26Department on or before the 7th, 15th, 22nd and last day of the

SB2199- 94 -LRB100 12245 HLH 24763 b
1month during which such liability is incurred. If the month
2during which such tax liability is incurred began prior to
3September 1, 1985 (the effective date of Public Act 84-221)
4this amendatory Act of 1985, each payment shall be in an amount
5not less than 22.5% of the taxpayer's actual liability under
6Section 2d. If the month during which such tax liability is
7incurred begins on or after January 1, 1986, each payment shall
8be in an amount equal to 22.5% of the taxpayer's actual
9liability for the month or 27.5% of the taxpayer's liability
10for the same calendar month of the preceding calendar year. If
11the month during which such tax liability is incurred begins on
12or after January 1, 1987, each payment shall be in an amount
13equal to 22.5% of the taxpayer's actual liability for the month
14or 26.25% of the taxpayer's liability for the same calendar
15month of the preceding year. The amount of such quarter monthly
16payments shall be credited against the final tax liability of
17the taxpayer's return for that month filed under this Section
18or Section 2f, as the case may be. Once applicable, the
19requirement of the making of quarter monthly payments to the
20Department pursuant to this paragraph shall continue until such
21taxpayer's average monthly prepaid tax collections during the
22preceding 2 complete calendar quarters is $25,000 or less. If
23any such quarter monthly payment is not paid at the time or in
24the amount required, the taxpayer shall be liable for penalties
25and interest on such difference, except insofar as the taxpayer
26has previously made payments for that month in excess of the

SB2199- 95 -LRB100 12245 HLH 24763 b
1minimum payments previously due.
2 The provisions of this paragraph apply on and after October
31, 2001. Without regard to whether a taxpayer is required to
4make quarter monthly payments as specified above, any taxpayer
5who is required by Section 2d of this Act to collect and remit
6prepaid taxes and has collected prepaid taxes that average in
7excess of $20,000 per month during the preceding 4 complete
8calendar quarters shall file a return with the Department as
9required by Section 2f and shall make payments to the
10Department on or before the 7th, 15th, 22nd and last day of the
11month during which the liability is incurred. Each payment
12shall be in an amount equal to 22.5% of the taxpayer's actual
13liability for the month or 25% of the taxpayer's liability for
14the same calendar month of the preceding year. The amount of
15the quarter monthly payments shall be credited against the
16final tax liability of the taxpayer's return for that month
17filed under this Section or Section 2f, as the case may be.
18Once applicable, the requirement of the making of quarter
19monthly payments to the Department pursuant to this paragraph
20shall continue until the taxpayer's average monthly prepaid tax
21collections during the preceding 4 complete calendar quarters
22(excluding the month of highest liability and the month of
23lowest liability) is less than $19,000 or until such taxpayer's
24average monthly liability to the Department as computed for
25each calendar quarter of the 4 preceding complete calendar
26quarters is less than $20,000. If any such quarter monthly

SB2199- 96 -LRB100 12245 HLH 24763 b
1payment is not paid at the time or in the amount required, the
2taxpayer shall be liable for penalties and interest on such
3difference, except insofar as the taxpayer has previously made
4payments for that month in excess of the minimum payments
5previously due.
6 If any payment provided for in this Section exceeds the
7taxpayer's liabilities under this Act, the Use Tax Act, the
8Service Occupation Tax Act and the Service Use Tax Act, as
9shown on an original monthly return, the Department shall, if
10requested by the taxpayer, issue to the taxpayer a credit
11memorandum no later than 30 days after the date of payment. The
12credit evidenced by such credit memorandum may be assigned by
13the taxpayer to a similar taxpayer under this Act, the Use Tax
14Act, the Service Occupation Tax Act or the Service Use Tax Act,
15in accordance with reasonable rules and regulations to be
16prescribed by the Department. If no such request is made, the
17taxpayer may credit such excess payment against tax liability
18subsequently to be remitted to the Department under this Act,
19the Use Tax Act, the Service Occupation Tax Act or the Service
20Use Tax Act, in accordance with reasonable rules and
21regulations prescribed by the Department. If the Department
22subsequently determined that all or any part of the credit
23taken was not actually due to the taxpayer, the taxpayer's 2.1%
24and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
25of the difference between the credit taken and that actually
26due, and that taxpayer shall be liable for penalties and

SB2199- 97 -LRB100 12245 HLH 24763 b
1interest on such difference.
2 If a retailer of motor fuel is entitled to a credit under
3Section 2d of this Act which exceeds the taxpayer's liability
4to the Department under this Act for the month which the
5taxpayer is filing a return, the Department shall issue the
6taxpayer a credit memorandum for the excess.
7 Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund, a special fund in the
9State treasury which is hereby created, the net revenue
10realized for the preceding month from the 1% tax on sales of
11food for human consumption which is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks and food which has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, products classified as Class III
16medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to a
18prescription, as well as any accessories and components related
19to those devices, and insulin, urine testing materials,
20syringes and needles used by diabetics.
21 Beginning January 1, 1990 and until June 30, 2017, each
22month the Department shall pay into the County and Mass Transit
23District Fund, a special fund in the State treasury which is
24hereby created, 4% of the net revenue realized for the
25preceding month from the 6.25% general rate. Beginning July 1,
262017, each month the Department shall pay into the County and

SB2199- 98 -LRB100 12245 HLH 24763 b
1Mass Transit District Fund 3.2% of the net revenue realized for
2the preceding month from the 6.25% general rate.
3 Beginning August 1, 2000, each month the Department shall
4pay into the County and Mass Transit District Fund 20% of the
5net revenue realized for the preceding month from the 1.25%
6rate on the selling price of motor fuel and gasohol. Beginning
7September 1, 2010 and until June 30, 2017, each month the
8Department shall pay into the County and Mass Transit District
9Fund 20% of the net revenue realized for the preceding month
10from the 1.25% rate on the selling price of sales tax holiday
11items. Beginning July 1, 2017, each month the Department shall
12pay into the County and Mass Transit District Fund 16% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of sales tax holiday items.
15 Beginning January 1, 1990 and until June 30, 2017, each
16month the Department shall pay into the Local Government Tax
17Fund 16% of the net revenue realized for the preceding month
18from the 6.25% general rate on the selling price of tangible
19personal property. Beginning July 1, 2017, each month the
20Department shall pay into the Local Government Tax Fund 12.8%
21of the net revenue realized for the preceding month from the
226.25% general rate on the selling price of tangible personal
23property.
24 Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

SB2199- 99 -LRB100 12245 HLH 24763 b
1selling price of motor fuel and gasohol. Beginning September 1,
22010 and until June 30, 2017, each month the Department shall
3pay into the Local Government Tax Fund 80% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of sales tax holiday items. Beginning July 1,
62017, each month the Department shall pay into the Local
7Government Tax Fund 64% of the net revenue realized for the
8preceding month from the 1.25% rate on the selling price of
9sales tax holiday items.
10 Beginning October 1, 2009, each month the Department shall
11pay into the Capital Projects Fund an amount that is equal to
12an amount estimated by the Department to represent 80% of the
13net revenue realized for the preceding month from the sale of
14candy, grooming and hygiene products, and soft drinks that had
15been taxed at a rate of 1% prior to September 1, 2009 but that
16are now taxed at 6.25%.
17 Beginning July 1, 2011, each month the Department shall pay
18into the Clean Air Act Permit Fund 80% of the net revenue
19realized for the preceding month from the 6.25% general rate on
20the selling price of sorbents used in Illinois in the process
21of sorbent injection as used to comply with the Environmental
22Protection Act or the federal Clean Air Act, but the total
23payment into the Clean Air Act Permit Fund under this Act and
24the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
25 Beginning July 1, 2013, each month the Department shall pay
26into the Underground Storage Tank Fund from the proceeds

SB2199- 100 -LRB100 12245 HLH 24763 b
1collected under this Act, the Use Tax Act, the Service Use Tax
2Act, and the Service Occupation Tax Act an amount equal to the
3average monthly deficit in the Underground Storage Tank Fund
4during the prior year, as certified annually by the Illinois
5Environmental Protection Agency, but the total payment into the
6Underground Storage Tank Fund under this Act, the Use Tax Act,
7the Service Use Tax Act, and the Service Occupation Tax Act
8shall not exceed $18,000,000 in any State fiscal year. As used
9in this paragraph, the "average monthly deficit" shall be equal
10to the difference between the average monthly claims for
11payment by the fund and the average monthly revenues deposited
12into the fund, excluding payments made pursuant to this
13paragraph.
14 Beginning July 1, 2015, of the remainder of the moneys
15received by the Department under the Use Tax Act, the Service
16Use Tax Act, the Service Occupation Tax Act, and this Act, each
17month the Department shall deposit $500,000 into the State
18Crime Laboratory Fund.
19 Of the remainder of the moneys received by the Department
20pursuant to this Act, (a) 1.75% thereof shall be paid into the
21Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
22and after July 1, 1989, 3.8% thereof shall be paid into the
23Build Illinois Fund; provided, however, that if in any fiscal
24year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
25may be, of the moneys received by the Department and required
26to be paid into the Build Illinois Fund pursuant to this Act,

SB2199- 101 -LRB100 12245 HLH 24763 b
1Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
2Act, and Section 9 of the Service Occupation Tax Act, such Acts
3being hereinafter called the "Tax Acts" and such aggregate of
42.2% or 3.8%, as the case may be, of moneys being hereinafter
5called the "Tax Act Amount", and (2) the amount transferred to
6the Build Illinois Fund from the State and Local Sales Tax
7Reform Fund shall be less than the Annual Specified Amount (as
8hereinafter defined), an amount equal to the difference shall
9be immediately paid into the Build Illinois Fund from other
10moneys received by the Department pursuant to the Tax Acts; the
11"Annual Specified Amount" means the amounts specified below for
12fiscal years 1986 through 1993:
13Fiscal YearAnnual Specified Amount
141986$54,800,000
151987$76,650,000
161988$80,480,000
171989$88,510,000
181990$115,330,000
191991$145,470,000
201992$182,730,000
211993$206,520,000;
22and means the Certified Annual Debt Service Requirement (as
23defined in Section 13 of the Build Illinois Bond Act) or the
24Tax Act Amount, whichever is greater, for fiscal year 1994 and
25each fiscal year thereafter; and further provided, that if on
26the last business day of any month the sum of (1) the Tax Act

SB2199- 102 -LRB100 12245 HLH 24763 b
1Amount required to be deposited into the Build Illinois Bond
2Account in the Build Illinois Fund during such month and (2)
3the amount transferred to the Build Illinois Fund from the
4State and Local Sales Tax Reform Fund shall have been less than
51/12 of the Annual Specified Amount, an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and, further provided, that in no event shall the
9payments required under the preceding proviso result in
10aggregate payments into the Build Illinois Fund pursuant to
11this clause (b) for any fiscal year in excess of the greater of
12(i) the Tax Act Amount or (ii) the Annual Specified Amount for
13such fiscal year. The amounts payable into the Build Illinois
14Fund under clause (b) of the first sentence in this paragraph
15shall be payable only until such time as the aggregate amount
16on deposit under each trust indenture securing Bonds issued and
17outstanding pursuant to the Build Illinois Bond Act is
18sufficient, taking into account any future investment income,
19to fully provide, in accordance with such indenture, for the
20defeasance of or the payment of the principal of, premium, if
21any, and interest on the Bonds secured by such indenture and on
22any Bonds expected to be issued thereafter and all fees and
23costs payable with respect thereto, all as certified by the
24Director of the Bureau of the Budget (now Governor's Office of
25Management and Budget). If on the last business day of any
26month in which Bonds are outstanding pursuant to the Build

SB2199- 103 -LRB100 12245 HLH 24763 b
1Illinois Bond Act, the aggregate of moneys deposited in the
2Build Illinois Bond Account in the Build Illinois Fund in such
3month shall be less than the amount required to be transferred
4in such month from the Build Illinois Bond Account to the Build
5Illinois Bond Retirement and Interest Fund pursuant to Section
613 of the Build Illinois Bond Act, an amount equal to such
7deficiency shall be immediately paid from other moneys received
8by the Department pursuant to the Tax Acts to the Build
9Illinois Fund; provided, however, that any amounts paid to the
10Build Illinois Fund in any fiscal year pursuant to this
11sentence shall be deemed to constitute payments pursuant to
12clause (b) of the first sentence of this paragraph and shall
13reduce the amount otherwise payable for such fiscal year
14pursuant to that clause (b). The moneys received by the
15Department pursuant to this Act and required to be deposited
16into the Build Illinois Fund are subject to the pledge, claim
17and charge set forth in Section 12 of the Build Illinois Bond
18Act.
19 Subject to payment of amounts into the Build Illinois Fund
20as provided in the preceding paragraph or in any amendment
21thereto hereafter enacted, the following specified monthly
22installment of the amount requested in the certificate of the
23Chairman of the Metropolitan Pier and Exposition Authority
24provided under Section 8.25f of the State Finance Act, but not
25in excess of sums designated as "Total Deposit", shall be
26deposited in the aggregate from collections under Section 9 of

SB2199- 104 -LRB100 12245 HLH 24763 b
1the Use Tax Act, Section 9 of the Service Use Tax Act, Section
29 of the Service Occupation Tax Act, and Section 3 of the
3Retailers' Occupation Tax Act into the McCormick Place
4Expansion Project Fund in the specified fiscal years.
5Fiscal YearTotal Deposit
61993 $0
71994 53,000,000
81995 58,000,000
91996 61,000,000
101997 64,000,000
111998 68,000,000
121999 71,000,000
132000 75,000,000
142001 80,000,000
152002 93,000,000
162003 99,000,000
172004103,000,000
182005108,000,000
192006113,000,000
202007119,000,000
212008126,000,000
222009132,000,000
232010139,000,000
242011146,000,000
252012153,000,000

SB2199- 105 -LRB100 12245 HLH 24763 b
12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

SB2199- 106 -LRB100 12245 HLH 24763 b
1Exposition Authority Act,
2but not after fiscal year 2060.
3 Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16 Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois Tax
21Increment Fund 0.27% of 80% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24 Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

SB2199- 107 -LRB100 12245 HLH 24763 b
1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11 Subject to payment of amounts into the Build Illinois Fund,
12the McCormick Place Expansion Project Fund, the Illinois Tax
13Increment Fund, and the Energy Infrastructure Fund pursuant to
14the preceding paragraphs or in any amendments to this Section
15hereafter enacted, beginning on the first day of the first
16calendar month to occur on or after August 26, 2014 (the
17effective date of Public Act 98-1098) this amendatory Act of
18the 98th General Assembly, each month, from the collections
19made under Section 9 of the Use Tax Act, Section 9 of the
20Service Use Tax Act, Section 9 of the Service Occupation Tax
21Act, and Section 3 of the Retailers' Occupation Tax Act, the
22Department shall pay into the Tax Compliance and Administration
23Fund, to be used, subject to appropriation, to fund additional
24auditors and compliance personnel at the Department of Revenue,
25an amount equal to 1/12 of 5% of 80% of the cash receipts
26collected during the preceding fiscal year by the Audit Bureau

SB2199- 108 -LRB100 12245 HLH 24763 b
1of the Department under the Use Tax Act, the Service Use Tax
2Act, the Service Occupation Tax Act, the Retailers' Occupation
3Tax Act, and associated local occupation and use taxes
4administered by the Department.
5 Of the remainder of the moneys received by the Department
6pursuant to this Act, 75% thereof shall be paid into the State
7Treasury and 25% shall be reserved in a special account and
8used only for the transfer to the Common School Fund as part of
9the monthly transfer from the General Revenue Fund in
10accordance with Section 8a of the State Finance Act.
11 The Department may, upon separate written notice to a
12taxpayer, require the taxpayer to prepare and file with the
13Department on a form prescribed by the Department within not
14less than 60 days after receipt of the notice an annual
15information return for the tax year specified in the notice.
16Such annual return to the Department shall include a statement
17of gross receipts as shown by the retailer's last Federal
18income tax return. If the total receipts of the business as
19reported in the Federal income tax return do not agree with the
20gross receipts reported to the Department of Revenue for the
21same period, the retailer shall attach to his annual return a
22schedule showing a reconciliation of the 2 amounts and the
23reasons for the difference. The retailer's annual return to the
24Department shall also disclose the cost of goods sold by the
25retailer during the year covered by such return, opening and
26closing inventories of such goods for such year, costs of goods

SB2199- 109 -LRB100 12245 HLH 24763 b
1used from stock or taken from stock and given away by the
2retailer during such year, payroll information of the
3retailer's business during such year and any additional
4reasonable information which the Department deems would be
5helpful in determining the accuracy of the monthly, quarterly
6or annual returns filed by such retailer as provided for in
7this Section.
8 If the annual information return required by this Section
9is not filed when and as required, the taxpayer shall be liable
10as follows:
11 (i) Until January 1, 1994, the taxpayer shall be liable
12 for a penalty equal to 1/6 of 1% of the tax due from such
13 taxpayer under this Act during the period to be covered by
14 the annual return for each month or fraction of a month
15 until such return is filed as required, the penalty to be
16 assessed and collected in the same manner as any other
17 penalty provided for in this Act.
18 (ii) On and after January 1, 1994, the taxpayer shall
19 be liable for a penalty as described in Section 3-4 of the
20 Uniform Penalty and Interest Act.
21 The chief executive officer, proprietor, owner or highest
22ranking manager shall sign the annual return to certify the
23accuracy of the information contained therein. Any person who
24willfully signs the annual return containing false or
25inaccurate information shall be guilty of perjury and punished
26accordingly. The annual return form prescribed by the

SB2199- 110 -LRB100 12245 HLH 24763 b
1Department shall include a warning that the person signing the
2return may be liable for perjury.
3 The provisions of this Section concerning the filing of an
4annual information return do not apply to a retailer who is not
5required to file an income tax return with the United States
6Government.
7 As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14 Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18 For greater simplicity of administration, manufacturers,
19importers and wholesalers whose products are sold at retail in
20Illinois by numerous retailers, and who wish to do so, may
21assume the responsibility for accounting and paying to the
22Department all tax accruing under this Act with respect to such
23sales, if the retailers who are affected do not make written
24objection to the Department to this arrangement.
25 Any person who promotes, organizes, provides retail
26selling space for concessionaires or other types of sellers at

SB2199- 111 -LRB100 12245 HLH 24763 b
1the Illinois State Fair, DuQuoin State Fair, county fairs,
2local fairs, art shows, flea markets and similar exhibitions or
3events, including any transient merchant as defined by Section
42 of the Transient Merchant Act of 1987, is required to file a
5report with the Department providing the name of the merchant's
6business, the name of the person or persons engaged in
7merchant's business, the permanent address and Illinois
8Retailers Occupation Tax Registration Number of the merchant,
9the dates and location of the event and other reasonable
10information that the Department may require. The report must be
11filed not later than the 20th day of the month next following
12the month during which the event with retail sales was held.
13Any person who fails to file a report required by this Section
14commits a business offense and is subject to a fine not to
15exceed $250.
16 Any person engaged in the business of selling tangible
17personal property at retail as a concessionaire or other type
18of seller at the Illinois State Fair, county fairs, art shows,
19flea markets and similar exhibitions or events, or any
20transient merchants, as defined by Section 2 of the Transient
21Merchant Act of 1987, may be required to make a daily report of
22the amount of such sales to the Department and to make a daily
23payment of the full amount of tax due. The Department shall
24impose this requirement when it finds that there is a
25significant risk of loss of revenue to the State at such an
26exhibition or event. Such a finding shall be based on evidence

SB2199- 112 -LRB100 12245 HLH 24763 b
1that a substantial number of concessionaires or other sellers
2who are not residents of Illinois will be engaging in the
3business of selling tangible personal property at retail at the
4exhibition or event, or other evidence of a significant risk of
5loss of revenue to the State. The Department shall notify
6concessionaires and other sellers affected by the imposition of
7this requirement. In the absence of notification by the
8Department, the concessionaires and other sellers shall file
9their returns as otherwise required in this Section.
10(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1198-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
128-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
13eff. 1-27-17; revised 2-3-17.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
feedback