Bill Text: IL SB3295 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that moneys in the Tax Compliance and Administration Fund shall consist of deposits provided for in tax laws, reimbursements, or other payments received from units of local government for administering a local tax or fee on behalf of the unit of local government in accordance with the Local Tax Collection Act, or other payments designated for deposit into the Fund. Amends the Retailers' Occupation Tax Act. In provisions concerning the disclosure of information, provides that the Department of Revenue may furnish certain information to counties as well as municipalities. Provides that, in addition to other information that the Department of Revenue is authorized to disclose, the Department may also disclose the standard classification number assigned to a business. Makes changes concerning cancellation of agreements. Provides that the Department of Revenue may enter into tax collection agreements with any unit of local government (currently, only counties and municipalities). Contains provisions concerning ordinances or resolutions imposing or discontinuing a tax collected by the Department pursuant to an intergovernmental agreement. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-04-22 - Rule 3-9(a) / Re-referred to Assignments [SB3295 Detail]
Download: Illinois-2015-SB3295-Introduced.html
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Department of Revenue Law of the
Civil | ||||||||||||||||||||||||
5 | Administrative Code of Illinois is amended by changing Section | ||||||||||||||||||||||||
6 | 2505-190 as follows:
| ||||||||||||||||||||||||
7 | (20 ILCS 2505/2505-190) (was 20 ILCS 2505/39c-4)
| ||||||||||||||||||||||||
8 | Sec. 2505-190. Tax Compliance and Administration Fund. | ||||||||||||||||||||||||
9 | (a) Amounts
deposited into the Tax Compliance and
| ||||||||||||||||||||||||
10 | Administration Fund, a special fund in the State treasury that | ||||||||||||||||||||||||
11 | is hereby
created, must be appropriated to the Department to
| ||||||||||||||||||||||||
12 | reimburse the Department for its costs of collecting, | ||||||||||||||||||||||||
13 | administering, and
enforcing the tax laws that provide for | ||||||||||||||||||||||||
14 | deposits into the Fund. Moneys in the Fund shall consist of | ||||||||||||||||||||||||
15 | deposits provided for in tax laws, reimbursements, or other | ||||||||||||||||||||||||
16 | payments received from units of local government for | ||||||||||||||||||||||||
17 | administering a local tax or fee on behalf of the unit of local | ||||||||||||||||||||||||
18 | government in accordance with the Local Tax Collection Act, or | ||||||||||||||||||||||||
19 | other payments designated for deposit into the Fund.
| ||||||||||||||||||||||||
20 | (b) As soon as possible after July 1, 2015, and as soon as | ||||||||||||||||||||||||
21 | possible after each July 1 thereafter, the Director of the | ||||||||||||||||||||||||
22 | Department of Revenue shall certify the balance in the Tax | ||||||||||||||||||||||||
23 | Compliance and Administration Fund as of July 1, less any |
| |||||||
| |||||||
1 | amounts obligated, and the State Comptroller shall order | ||||||
2 | transferred and the State Treasurer shall transfer from the Tax | ||||||
3 | Compliance and Administration Fund to the General Revenue Fund | ||||||
4 | the amount certified that exceeds $2,500,000. | ||||||
5 | (Source: P.A. 98-1098, eff. 8-26-14.)
| ||||||
6 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
7 | changing Section 11 as follows:
| ||||||
8 | (35 ILCS 120/11) (from Ch. 120, par. 450)
| ||||||
9 | Sec. 11. All information received by the Department from | ||||||
10 | returns filed
under this Act, or from any investigation | ||||||
11 | conducted under this Act, shall
be confidential, except for | ||||||
12 | official purposes, and any person who divulges
any such | ||||||
13 | information in any manner, except in accordance with a proper
| ||||||
14 | judicial order or as otherwise provided by law, shall be guilty | ||||||
15 | of a Class
B misdemeanor with a fine not to exceed $7,500.
| ||||||
16 | Nothing in this Act prevents the Director of Revenue from | ||||||
17 | publishing or
making available to the public the names and | ||||||
18 | addresses of persons filing
returns under this Act, or | ||||||
19 | reasonable statistics concerning the operation
of the tax by | ||||||
20 | grouping the contents of returns so the information in any
| ||||||
21 | individual return is not disclosed.
| ||||||
22 | Nothing in this Act prevents the Director of Revenue from | ||||||
23 | divulging to
the United States Government or the government of | ||||||
24 | any other state, or any
officer or agency thereof, for |
| |||||||
| |||||||
1 | exclusively official purposes, information
received by the | ||||||
2 | Department in administering this Act, provided that such
other | ||||||
3 | governmental agency agrees to divulge requested tax | ||||||
4 | information to
the Department.
| ||||||
5 | The Department's furnishing of information derived from a | ||||||
6 | taxpayer's
return or from an investigation conducted under this | ||||||
7 | Act to the surety on a
taxpayer's bond that has been furnished | ||||||
8 | to the Department under this Act,
either to provide notice to | ||||||
9 | such surety of its potential liability under
the bond or, in | ||||||
10 | order to support the Department's demand for payment from
such | ||||||
11 | surety under the bond, is an official purpose within the | ||||||
12 | meaning of
this Section.
| ||||||
13 | The furnishing upon request of information obtained by the | ||||||
14 | Department
from returns filed under this Act or investigations | ||||||
15 | conducted under this
Act to the Illinois Liquor Control | ||||||
16 | Commission for official use is deemed to
be an official purpose | ||||||
17 | within the meaning of this Section.
| ||||||
18 | Notice to a surety of potential liability shall not be | ||||||
19 | given unless the
taxpayer has first been notified, not less | ||||||
20 | than 10 days prior thereto, of
the Department's intent to so | ||||||
21 | notify the surety.
| ||||||
22 | The furnishing upon request of the Auditor General, or his | ||||||
23 | authorized agents,
for official use, of returns filed and | ||||||
24 | information related thereto under
this Act is deemed to be an | ||||||
25 | official purpose within the meaning of this
Section.
| ||||||
26 | Where an appeal or a protest has been filed on behalf of a |
| |||||||
| |||||||
1 | taxpayer, the
furnishing upon request of the attorney for the | ||||||
2 | taxpayer of returns filed
by the taxpayer and information | ||||||
3 | related thereto under this Act is deemed
to be an official | ||||||
4 | purpose within the meaning of this Section.
| ||||||
5 | The furnishing of financial information to a municipality | ||||||
6 | or county , upon request of the chief executive officer Chief
| ||||||
7 | Executive thereof, is an official purpose within the meaning of | ||||||
8 | this Section,
provided the municipality or county agrees in
| ||||||
9 | writing to the requirements of this Section. Information | ||||||
10 | provided to municipalities and counties under this paragraph | ||||||
11 | shall be limited to: (1) the business name; (2) the business | ||||||
12 | address; (3) the standard classification number assigned to the | ||||||
13 | business; (4) net revenue distributed to the requesting | ||||||
14 | municipality or county that is directly related to the | ||||||
15 | requesting municipality's or county's local share of the | ||||||
16 | proceeds under the Use Tax Act, the Service Use Tax Act, the | ||||||
17 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
18 | Act distributed from the Local Government Tax Fund , and, if | ||||||
19 | applicable, any locally imposed retailers' occupation tax or | ||||||
20 | service occupation tax; and (5) (4) a listing of all businesses | ||||||
21 | within the requesting municipality or county by account | ||||||
22 | identification number and address. On and after July 1, 2015, | ||||||
23 | the furnishing of financial information to municipalities and | ||||||
24 | counties under this paragraph may be by electronic means.
| ||||||
25 | Information so provided shall be subject to all | ||||||
26 | confidentiality provisions
of this Section. The written |
| |||||||
| |||||||
1 | agreement shall provide for reciprocity,
limitations on | ||||||
2 | access, disclosure, and procedures for requesting information.
| ||||||
3 | The Department may make available to the Board of Trustees | ||||||
4 | of any Metro
East Mass Transit District information contained | ||||||
5 | on transaction reporting
returns required to be filed under | ||||||
6 | Section 3 of this Act that report sales made
within the | ||||||
7 | boundary of the taxing authority of that Metro East Mass | ||||||
8 | Transit
District, as provided in Section 5.01 of the Local Mass | ||||||
9 | Transit District Act.
The disclosure shall be made pursuant to | ||||||
10 | a written agreement between the
Department and the Board of | ||||||
11 | Trustees of a Metro East Mass Transit District,
which is an | ||||||
12 | official purpose within the meaning of this Section. The | ||||||
13 | written
agreement between the Department and the Board of | ||||||
14 | Trustees of a Metro East
Mass Transit District shall provide | ||||||
15 | for reciprocity, limitations on access,
disclosure, and | ||||||
16 | procedures for requesting information. Information so provided
| ||||||
17 | shall be subject to all confidentiality provisions of this | ||||||
18 | Section.
| ||||||
19 | The Director may make available to any State agency, | ||||||
20 | including the
Illinois Supreme Court, which licenses persons to | ||||||
21 | engage in any occupation,
information that a person licensed by | ||||||
22 | such agency has failed to file
returns under this Act or pay | ||||||
23 | the tax, penalty and interest shown therein,
or has failed to | ||||||
24 | pay any final assessment of tax, penalty or interest due
under | ||||||
25 | this Act.
The Director may make available to any State agency, | ||||||
26 | including the Illinois
Supreme
Court, information regarding |
| |||||||
| |||||||
1 | whether a bidder, contractor, or an affiliate of a
bidder or
| ||||||
2 | contractor has failed to collect and remit Illinois Use tax on | ||||||
3 | sales into
Illinois, or any tax
under this Act or pay the tax, | ||||||
4 | penalty, and interest shown therein, or has
failed to pay any
| ||||||
5 | final assessment of tax, penalty, or interest due under this | ||||||
6 | Act, for the
limited purpose of
enforcing bidder and contractor | ||||||
7 | certifications. The Director may make available
to units
of | ||||||
8 | local government and school districts that require bidder and | ||||||
9 | contractor
certifications,
as set forth in Sections 50-11 and | ||||||
10 | 50-12 of the Illinois Procurement Code,
information
regarding | ||||||
11 | whether a bidder, contractor, or an affiliate of a bidder or
| ||||||
12 | contractor has failed
to collect and remit Illinois Use tax on | ||||||
13 | sales into Illinois, file returns under
this Act, or
pay the | ||||||
14 | tax, penalty, and interest shown therein, or has failed to pay | ||||||
15 | any final
assessment
of tax, penalty, or interest due under | ||||||
16 | this Act, for the limited purpose of
enforcing bidder
and | ||||||
17 | contractor certifications. For purposes of this Section, the | ||||||
18 | term
"affiliate" means any
entity that (1) directly, | ||||||
19 | indirectly, or constructively controls another
entity,
(2) is | ||||||
20 | directly,
indirectly, or constructively controlled by another | ||||||
21 | entity, or (3) is subject
to
the control of
a common entity. | ||||||
22 | For purposes of this Section, an entity controls another
entity
| ||||||
23 | if it owns,
directly or individually, more than 10% of the | ||||||
24 | voting securities of that
entity.
As used in
this Section, the | ||||||
25 | term "voting security" means a security that (1) confers upon
| ||||||
26 | the holder
the right to vote for the election of members of the |
| |||||||
| |||||||
1 | board of directors or
similar governing
body of the business or | ||||||
2 | (2) is convertible into, or entitles the holder to
receive upon | ||||||
3 | its
exercise, a security that confers such a right to vote. A | ||||||
4 | general partnership
interest is a
voting security.
| ||||||
5 | The Director may make available to any State agency, | ||||||
6 | including the
Illinois
Supreme Court, units of local | ||||||
7 | government, and school districts, information
regarding
| ||||||
8 | whether a bidder or contractor is an affiliate of a person who | ||||||
9 | is not
collecting
and
remitting Illinois Use taxes for the | ||||||
10 | limited purpose of enforcing bidder and
contractor
| ||||||
11 | certifications.
| ||||||
12 | The Director may also make available to the Secretary of | ||||||
13 | State
information that a limited liability company, which has | ||||||
14 | filed articles of
organization with the Secretary of State, or | ||||||
15 | corporation which has been
issued a certificate of | ||||||
16 | incorporation by the Secretary of State has failed to
file | ||||||
17 | returns under this Act or pay the tax, penalty and interest | ||||||
18 | shown therein,
or has failed to pay any final assessment of | ||||||
19 | tax, penalty or interest due under
this Act. An assessment is | ||||||
20 | final when all proceedings in court for review of
such | ||||||
21 | assessment have terminated or the time for the taking thereof | ||||||
22 | has expired
without such proceedings being instituted.
| ||||||
23 | The Director shall make available for public inspection in | ||||||
24 | the Department's
principal office and for publication, at cost, | ||||||
25 | administrative decisions issued
on or after January 1, 1995. | ||||||
26 | These decisions are to be made available in a
manner so that |
| |||||||
| |||||||
1 | the following taxpayer information is not disclosed:
| ||||||
2 | (1) The names, addresses, and identification numbers | ||||||
3 | of the taxpayer,
related entities, and employees.
| ||||||
4 | (2) At the sole discretion of the Director, trade | ||||||
5 | secrets
or other confidential information identified as | ||||||
6 | such by the taxpayer, no later
than 30 days after receipt | ||||||
7 | of an administrative decision, by such means as the
| ||||||
8 | Department shall provide by rule.
| ||||||
9 | The Director shall determine the appropriate extent of the | ||||||
10 | deletions allowed
in paragraph (2). In the event the taxpayer | ||||||
11 | does not submit deletions, the
Director shall make only the | ||||||
12 | deletions specified in paragraph (1).
| ||||||
13 | The Director shall make available for public inspection and | ||||||
14 | publication an
administrative decision within 180 days after | ||||||
15 | the issuance of the
administrative decision. The term | ||||||
16 | "administrative decision" has the same
meaning as defined in | ||||||
17 | Section 3-101 of Article III of the Code of Civil
Procedure. | ||||||
18 | Costs collected under this Section shall be paid into the Tax
| ||||||
19 | Compliance and Administration Fund.
| ||||||
20 | Nothing contained in this Act shall prevent the Director | ||||||
21 | from divulging
information to any person pursuant to a request | ||||||
22 | or authorization made by the
taxpayer or by an authorized | ||||||
23 | representative of the taxpayer.
| ||||||
24 | (Source: P.A. 98-1058, eff. 1-1-15 .)
| ||||||
25 | Section 15. The Local Tax Collection Act is amended by |
| |||||||
| |||||||
1 | changing Section 1 as follows:
| ||||||
2 | (35 ILCS 720/1) (from Ch. 120, par. 1901)
| ||||||
3 | Sec. 1.
(a) The Department of Revenue and any unit of local | ||||||
4 | government county or municipality
may agree to the Department's | ||||||
5 | collecting, and transmitting back to the unit of local | ||||||
6 | government such county
or municipality , any tax lawfully | ||||||
7 | imposed by that unit of local government county or | ||||||
8 | municipality ,
the subject of which is similar to that of a tax | ||||||
9 | imposed by the State and
collected by the Department of | ||||||
10 | Revenue, unless the General Assembly has
specifically required | ||||||
11 | a different method of collection for such tax.
However, the | ||||||
12 | Department may not enter into a contract with any unit of local | ||||||
13 | government municipality
or county pursuant to this Act for the | ||||||
14 | collection of any tax based on the
sale or use of tangible | ||||||
15 | personal property generally, not including taxes
based only on | ||||||
16 | the sale or use of specifically limited kinds of tangible
| ||||||
17 | personal property, unless the
municipal or county ordinance | ||||||
18 | adopted by the unit of local government imposes a sales or use | ||||||
19 | tax which is
substantively identical to and which contains the | ||||||
20 | same exemptions as the
taxes imposed by the unit of local | ||||||
21 | government's municipalities' or counties' ordinances | ||||||
22 | authorized by
the Home Rule or Non-Home Rule Municipal or | ||||||
23 | County Retailers' Occupation Tax Act , the Home Rule or Non-Home | ||||||
24 | Rule or the Municipal or
County Use Tax , or any other | ||||||
25 | Retailers' Occupation Tax Act or Law that is administered by |
| |||||||
| |||||||
1 | the Department of Revenue, as interpreted by the Department | ||||||
2 | through its regulations as
those Acts and as those regulations | ||||||
3 | may from time to time be amended.
| ||||||
4 | (b) Regarding the collection of a tax pursuant to this | ||||||
5 | Section, the
Department and any person subject to a tax | ||||||
6 | collected by the Department
pursuant to this Section shall, as | ||||||
7 | much as practicable, have the same
rights, remedies, | ||||||
8 | privileges, immunities, powers and duties, and be subject
to | ||||||
9 | the same conditions, restrictions, limitations,
penalties, | ||||||
10 | definitions of terms and procedures, as those set forth in the
| ||||||
11 | Act imposing the State tax, the subject of which is similar to | ||||||
12 | the tax being
collected by the Department pursuant to this | ||||||
13 | Section. The Department and
unit of local government county or | ||||||
14 | municipality shall specifically agree in writing to such | ||||||
15 | rights,
remedies, privileges, immunities, powers, duties, | ||||||
16 | conditions, restrictions,
limitations, penalties, definitions | ||||||
17 | of terms and procedures, as well as any
other terms deemed | ||||||
18 | necessary or advisable. All terms so agreed upon shall
be | ||||||
19 | incorporated into an ordinance of such unit of local government | ||||||
20 | county or municipality ,
and the Department shall not collect | ||||||
21 | the tax pursuant to this Section until
such ordinance takes | ||||||
22 | effect.
| ||||||
23 | (c) (1) The Department shall forthwith pay over to the | ||||||
24 | State Treasurer, ex
officio, as trustee, all taxes and | ||||||
25 | penalties collected hereunder. On or
before the 25th day of | ||||||
26 | each calendar month, the Department shall prepare
and certify |
| |||||||
| |||||||
1 | to the Comptroller the disbursement of stated sums of money to
| ||||||
2 | named units of local government cities and counties from which | ||||||
3 | retailers or other taxpayers have paid taxes or penalties
| ||||||
4 | hereunder to the Department during the second preceding | ||||||
5 | calendar month.
| ||||||
6 | (i) The an amount to be paid to each unit of local | ||||||
7 | government county and municipality, which shall equal
the taxes | ||||||
8 | and penalties collected by the Department for the unit of local | ||||||
9 | government such county or
municipality pursuant to this Section | ||||||
10 | during the second preceding calendar month (not including | ||||||
11 | credit memoranda), plus an amount the Department determines is | ||||||
12 | necessary to offset any amounts which were erroneously paid to | ||||||
13 | a different taxing body, and not including (i) an amount equal | ||||||
14 | to the amount of refunds made during the second preceding | ||||||
15 | calendar month by the Department of behalf of such county or | ||||||
16 | municipality and (ii) any amount which the Department | ||||||
17 | determines is necessary to offset any amounts which are payable | ||||||
18 | to a different taxing body but were erroneously paid to the | ||||||
19 | municipality or county ,
less 2% of the balance, or any greater | ||||||
20 | amount of the balance as provided in the agreement between the | ||||||
21 | Department and the unit of local government required under this | ||||||
22 | Section, which sum shall be retained by the State Treasurer. | ||||||
23 | total amount of taxes and penalties collected by the Department
| ||||||
24 | for such county or municipality pursuant to this Section or the | ||||||
25 | actual cost
of collection of such taxes and penalties | ||||||
26 | determined pursuant to the
agreement described in subsection |
| |||||||
| |||||||
1 | (b), whichever is less, which shall be
retained by the State; | ||||||
2 | and
| ||||||
3 | (ii) With respect to the total amount to be retained by the | ||||||
4 | State Treasurer pursuant to
subparagraph (i), the Department, | ||||||
5 | at the time of each monthly disbursement to the units of local | ||||||
6 | government, shall prepare and certify to the Comptroller the | ||||||
7 | amount so retained by the State Treasurer, which shall be | ||||||
8 | transferred such amount to be deposited into the Tax Compliance | ||||||
9 | and Administration General Revenue Fund
of the State treasury | ||||||
10 | and used by the Department, subject to appropriation, to cover | ||||||
11 | the costs incurred by the
Department in collecting such taxes | ||||||
12 | and penalties.
| ||||||
13 | (2) Within 10 7 days after receiving the certifications | ||||||
14 | described in paragraph
(1), the Comptroller shall issue orders | ||||||
15 | for payment of the amounts specified
in subparagraph (i) of | ||||||
16 | paragraph (1).
| ||||||
17 | (d) Any home rule unit of local government which imposes a | ||||||
18 | tax
collected by the Department pursuant to this Section | ||||||
19 | substantially similar to a State imposed tax, or which imposes | ||||||
20 | a tax which
is intended to be collected from a retail purchaser | ||||||
21 | of goods or services at
the same time a similar State tax is | ||||||
22 | also collected, must file a certified copy of
the ordinance | ||||||
23 | imposing the tax with the Department within 10 days after
its | ||||||
24 | passage. Beginning on the effective date of this amendatory Act | ||||||
25 | of the 99th General Assembly, an ordinance or resolution | ||||||
26 | imposing or discontinuing a tax collected by the Department |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | under this Section or effecting a change in the rate thereof | |||||||||||||||||||||||||
2 | shall either (i) be adopted and a certified copy thereof filed | |||||||||||||||||||||||||
3 | with the Department on or before the first day of April, | |||||||||||||||||||||||||
4 | whereupon the
Department shall proceed to administer and | |||||||||||||||||||||||||
5 | enforce the tax imposition, discontinuance, or rate change as | |||||||||||||||||||||||||
6 | of the first day of July next following the adoption and | |||||||||||||||||||||||||
7 | filing; or (ii) be adopted and certified copy thereof filed | |||||||||||||||||||||||||
8 | with the Department on or before the first day of October, | |||||||||||||||||||||||||
9 | whereupon the Department shall proceed to administer and | |||||||||||||||||||||||||
10 | enforce the tax imposition, discontinuance, or rate change as | |||||||||||||||||||||||||
11 | of the first day of January next following the adoption and | |||||||||||||||||||||||||
12 | filing. No such ordinance shall become effective until it is so
| |||||||||||||||||||||||||
13 | filed. Any home rule unit of local government which has enacted | |||||||||||||||||||||||||
14 | such an
ordinance prior to the effective date of this Act shall | |||||||||||||||||||||||||
15 | file a copy of such
ordinance with the Department within 90 | |||||||||||||||||||||||||
16 | days after the effective date of this Act.
| |||||||||||||||||||||||||
17 | (e) It is declared to be the law of this State, pursuant to | |||||||||||||||||||||||||
18 | paragraph
(g) of Section 6 of Article VII of the Illinois | |||||||||||||||||||||||||
19 | Constitution, that this
amendatory Act of 1988 is a denial of | |||||||||||||||||||||||||
20 | the power of a home rule unit to fail
to comply with the | |||||||||||||||||||||||||
21 | requirements of paragraphs (d) and (e) of this Section.
| |||||||||||||||||||||||||
22 | (Source: P.A. 85-1215.)
| |||||||||||||||||||||||||
23 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
24 | becoming law. | |||||||||||||||||||||||||
|