Bill Text: IL SB2562 | 2015-2016 | 99th General Assembly | Engrossed

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Bill Title: Amends the Retailers' Occupation Tax Act. Provides that the Department of Revenue may furnish certain financial information to municipalities and counties (now, only municipalities) if the municipality or county agrees in writing to the Act's confidentiality provisions. Provides that the Department of Revenue is authorized to provide the information to municipalities or counties by electronic means. Provides that the Department may disclose the standard classification number assigned to a business. Provides that only the chief executive officer or chairman of the municipality or county may enter into an information-sharing agreement with the Department. Requires the chief executive officer or chairman to provide the Department with a list of municipal or county employees who may request return information, view return information, or receive related information. Contains provisions concerning the cancellation of the agreement.

Spectrum: Moderate Partisan Bill (Republican 11-3)

Status: (Passed) 2016-08-12 - Public Act . . . . . . . . . 99-0792 [SB2562 Detail]

Download: Illinois-2015-SB2562-Engrossed.html



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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 11 as follows:
6 (35 ILCS 120/11) (from Ch. 120, par. 450)
7 Sec. 11. All information received by the Department from
8returns filed under this Act, or from any investigation
9conducted under this Act, shall be confidential, except for
10official purposes, and any person who divulges any such
11information in any manner, except in accordance with a proper
12judicial order or as otherwise provided by law, shall be guilty
13of a Class B misdemeanor with a fine not to exceed $7,500.
14 Nothing in this Act prevents the Director of Revenue from
15publishing or making available to the public the names and
16addresses of persons filing returns under this Act, or
17reasonable statistics concerning the operation of the tax by
18grouping the contents of returns so the information in any
19individual return is not disclosed.
20 Nothing in this Act prevents the Director of Revenue from
21divulging to the United States Government or the government of
22any other state, or any officer or agency thereof, for
23exclusively official purposes, information received by the

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1Department in administering this Act, provided that such other
2governmental agency agrees to divulge requested tax
3information to the Department.
4 The Department's furnishing of information derived from a
5taxpayer's return or from an investigation conducted under this
6Act to the surety on a taxpayer's bond that has been furnished
7to the Department under this Act, either to provide notice to
8such surety of its potential liability under the bond or, in
9order to support the Department's demand for payment from such
10surety under the bond, is an official purpose within the
11meaning of this Section.
12 The furnishing upon request of information obtained by the
13Department from returns filed under this Act or investigations
14conducted under this Act to the Illinois Liquor Control
15Commission for official use is deemed to be an official purpose
16within the meaning of this Section.
17 Notice to a surety of potential liability shall not be
18given unless the taxpayer has first been notified, not less
19than 10 days prior thereto, of the Department's intent to so
20notify the surety.
21 The furnishing upon request of the Auditor General, or his
22authorized agents, for official use, of returns filed and
23information related thereto under this Act is deemed to be an
24official purpose within the meaning of this Section.
25 Where an appeal or a protest has been filed on behalf of a
26taxpayer, the furnishing upon request of the attorney for the

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1taxpayer of returns filed by the taxpayer and information
2related thereto under this Act is deemed to be an official
3purpose within the meaning of this Section.
4 The furnishing of financial information to a municipality
5or county, upon request of the chief executive officer or
6chairman Chief Executive thereof, as appropriate, is an
7official purpose within the meaning of this Section, provided
8the municipality or county agrees in writing to the
9requirements of this Section. Information provided to
10municipalities and counties under this paragraph shall be
11limited to: (1) the business name; (2) the business address;
12(3) net revenue distributed to the requesting municipality or
13county that is directly related to the requesting
14municipality's or county's local share of the proceeds under
15the Use Tax Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act, and,
17if applicable, any locally imposed retailers' occupation tax or
18service occupation tax; and (4) a listing of all businesses
19within the requesting municipality or county by account
20identification number and address. On and after July 1, 2015,
21the furnishing of financial information to municipalities or
22counties under this paragraph may be by electronic means.
23 Information so provided shall be subject to all
24confidentiality provisions of this Section. The written
25agreement shall provide for reciprocity, limitations on
26access, disclosure, and procedures for requesting information.

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1 The Department may make available to the Board of Trustees
2of any Metro East Mass Transit District information contained
3on transaction reporting returns required to be filed under
4Section 3 of this Act that report sales made within the
5boundary of the taxing authority of that Metro East Mass
6Transit District, as provided in Section 5.01 of the Local Mass
7Transit District Act. The disclosure shall be made pursuant to
8a written agreement between the Department and the Board of
9Trustees of a Metro East Mass Transit District, which is an
10official purpose within the meaning of this Section. The
11written agreement between the Department and the Board of
12Trustees of a Metro East Mass Transit District shall provide
13for reciprocity, limitations on access, disclosure, and
14procedures for requesting information. Information so provided
15shall be subject to all confidentiality provisions of this
16Section.
17 The Director may make available to any State agency,
18including the Illinois Supreme Court, which licenses persons to
19engage in any occupation, information that a person licensed by
20such agency has failed to file returns under this Act or pay
21the tax, penalty and interest shown therein, or has failed to
22pay any final assessment of tax, penalty or interest due under
23this Act. The Director may make available to any State agency,
24including the Illinois Supreme Court, information regarding
25whether a bidder, contractor, or an affiliate of a bidder or
26contractor has failed to collect and remit Illinois Use tax on

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1sales into Illinois, or any tax under this Act or pay the tax,
2penalty, and interest shown therein, or has failed to pay any
3final assessment of tax, penalty, or interest due under this
4Act, for the limited purpose of enforcing bidder and contractor
5certifications. The Director may make available to units of
6local government and school districts that require bidder and
7contractor certifications, as set forth in Sections 50-11 and
850-12 of the Illinois Procurement Code, information regarding
9whether a bidder, contractor, or an affiliate of a bidder or
10contractor has failed to collect and remit Illinois Use tax on
11sales into Illinois, file returns under this Act, or pay the
12tax, penalty, and interest shown therein, or has failed to pay
13any final assessment of tax, penalty, or interest due under
14this Act, for the limited purpose of enforcing bidder and
15contractor certifications. For purposes of this Section, the
16term "affiliate" means any entity that (1) directly,
17indirectly, or constructively controls another entity, (2) is
18directly, indirectly, or constructively controlled by another
19entity, or (3) is subject to the control of a common entity.
20For purposes of this Section, an entity controls another entity
21if it owns, directly or individually, more than 10% of the
22voting securities of that entity. As used in this Section, the
23term "voting security" means a security that (1) confers upon
24the holder the right to vote for the election of members of the
25board of directors or similar governing body of the business or
26(2) is convertible into, or entitles the holder to receive upon

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1its exercise, a security that confers such a right to vote. A
2general partnership interest is a voting security.
3 The Director may make available to any State agency,
4including the Illinois Supreme Court, units of local
5government, and school districts, information regarding
6whether a bidder or contractor is an affiliate of a person who
7is not collecting and remitting Illinois Use taxes for the
8limited purpose of enforcing bidder and contractor
9certifications.
10 The Director may also make available to the Secretary of
11State information that a limited liability company, which has
12filed articles of organization with the Secretary of State, or
13corporation which has been issued a certificate of
14incorporation by the Secretary of State has failed to file
15returns under this Act or pay the tax, penalty and interest
16shown therein, or has failed to pay any final assessment of
17tax, penalty or interest due under this Act. An assessment is
18final when all proceedings in court for review of such
19assessment have terminated or the time for the taking thereof
20has expired without such proceedings being instituted.
21 The Director shall make available for public inspection in
22the Department's principal office and for publication, at cost,
23administrative decisions issued on or after January 1, 1995.
24These decisions are to be made available in a manner so that
25the following taxpayer information is not disclosed:
26 (1) The names, addresses, and identification numbers

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1 of the taxpayer, related entities, and employees.
2 (2) At the sole discretion of the Director, trade
3 secrets or other confidential information identified as
4 such by the taxpayer, no later than 30 days after receipt
5 of an administrative decision, by such means as the
6 Department shall provide by rule.
7 The Director shall determine the appropriate extent of the
8deletions allowed in paragraph (2). In the event the taxpayer
9does not submit deletions, the Director shall make only the
10deletions specified in paragraph (1).
11 The Director shall make available for public inspection and
12publication an administrative decision within 180 days after
13the issuance of the administrative decision. The term
14"administrative decision" has the same meaning as defined in
15Section 3-101 of Article III of the Code of Civil Procedure.
16Costs collected under this Section shall be paid into the Tax
17Compliance and Administration Fund.
18 Nothing contained in this Act shall prevent the Director
19from divulging information to any person pursuant to a request
20or authorization made by the taxpayer or by an authorized
21representative of the taxpayer.
22(Source: P.A. 98-1058, eff. 1-1-15.)
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