Bill Text: IL SB3348 | 2011-2012 | 97th General Assembly | Amended


Bill Title: Creates the Live Adult Entertainment Facility Tax Act. Imposes a tax on each operator who operates a live adult entertainment facility in this State. Provides that the amount of the tax is an amount equal to $5 for each entry by each customer admitted into the live adult entertainment facility. Creates the Sexual Assault Prevention Fund as a special fund in the State treasury. Requires that the proceeds of the tax be deposited into the Sexual Assault Prevention Fund. Provides that, from appropriation from the Fund, the Department of Human Services shall make grants to sexual assault organizations with whom the Department has contracts for the purpose of providing community-based assistance to victims of sexual assault and for activities concerning the prevention of sexual assault. Sets forth provisions for the administration of the tax.

Spectrum: Slight Partisan Bill (Democrat 9-3)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3348 Detail]

Download: Illinois-2011-SB3348-Amended.html

Sen. Toi W. Hutchinson

Filed: 5/8/2012

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1
AMENDMENT TO SENATE BILL 3348
2 AMENDMENT NO. ______. Amend Senate Bill 3348 by replacing
3everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the Live
5Adult Entertainment Facility Surcharge Act.
6 Section 3. Findings. It is the intent of the General
7Assembly to ameliorate the negative secondary effects
8associated with the consumption of alcoholic beverages on the
9premises of sexually oriented businesses, or the proximity of
10sexually oriented businesses to facilities serving alcohol, so
11as to promote the health, safety, and welfare of the citizens
12of Illinois.
13 This Act is not intended to directly or indirectly impose
14limitations or restrictions on live nude dancing, nor is it the
15intent of this Act to restrict or deny access by adults to live
16nude dancing performances that may be protected by the First

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1Amendment of the United States Constitution or by the Illinois
2Constitution.
3 Section 5. Definitions. As used in this Act:
4 "Admission" means entry by a person into a live adult
5entertainment facility.
6 "Department" means the Department of Revenue.
7 "Live adult entertainment facility" means a striptease
8club or other business that serves or permits the consumption
9of alcohol on its premises, and, during at least 30 consecutive
10or nonconsecutive days in a calendar year, offers or provides
11activities by employees, agents, or contractors of the business
12that involve nude or partially denuded individuals that, when
13considered as a whole, appeal primarily to an interest in
14nudity or sex.
15 "Nude or partially denuded individual" means an individual
16who is:
17 (1) entirely unclothed; or
18 (2) clothed in a manner that leaves uncovered or
19 visible through less than fully opaque clothing any portion
20 of the breasts below the top of the areola of the breasts,
21 if the person is female, or any portion of the genitals or
22 buttocks.
23 "Operator" means any person who owns or operates a live
24adult entertainment facility in this State.

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1 Section 10. Surcharge imposed; returns.
2 (a) An annual surcharge is imposed upon each operator who
3operates a live adult entertainment facility in this State. By
4January 20, 2014, and by January 20 of each year thereafter,
5each operator shall elect to pay the surcharge according to
6either item (1) or item (2) of this subsection.
7 (1) An operator who elects to be subject to this item
8 (1) shall pay to the Department a surcharge imposed upon
9 admissions to a live adult entertainment facility operated
10 by the operator in this State in an amount equal to $3 per
11 person admitted to that live adult entertainment facility.
12 This item (1) does not require a live entertainment
13 facility to impose a fee on a customer of the facility. An
14 operator has the discretion to determine the manner in
15 which the facility derives the moneys required to pay the
16 surcharge imposed under this section. In the event that an
17 operator has not filed the applicable returns under the
18 Retailers' Occupation Tax Act for a full calendar year
19 prior to any January 20, then such operator shall pay the
20 surcharge under this Act pursuant to this item (1) for
21 moneys owed to the Department subject to this Act for the
22 previous calendar year.
23 (2) An operator may, in the alternative, pay to the
24 Department the surcharge as follows:
25 (A) If the gross receipts received by the live
26 adult entertainment facility during the preceding

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1 calendar year, upon the basis of which a tax is imposed
2 under Section 2 of the Retailers' Occupation Tax Act,
3 are equal or greater than $2,000,000 during the
4 preceding calendar year, and if the operator elects to
5 be subject to this item (2), then the operator shall
6 pay the Department a surcharge of $25,000.
7 (B) If the gross receipts received by the live
8 adult entertainment facility during the preceding
9 calendar year, upon the basis of which a tax is imposed
10 under Section 2 of the Retailers' Occupation Tax Act,
11 are equal to or greater than $500,000 but less than
12 $2,000,000 during the preceding calendar year, and if
13 the operator elects to be subject to this item (2),
14 then the operator shall pay to the Department a
15 surcharge of $15,000.
16 (C) If the gross receipts received by the live
17 adult entertainment facility during the preceding
18 calendar year, upon the basis of which a tax is imposed
19 under Section 2 of the Retailers' Occupation Tax Act,
20 are less than $500,000 during the preceding calendar
21 year, then the operator shall pay the Department a
22 surcharge of $5,000.
23 (b) For each live adult entertainment facility paying the
24surcharge as set forth in item (1) of subsection (a) of this
25Section, the operator must file a return electronically as
26provided by the Department and remit payment to the Department

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

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1 facility and the address of the principal place of business
2 (if that is a different address) of the operator;
3 (3) the gross receipts received by the live adult
4 entertainment facility during the preceding calendar year,
5 upon the basis of which tax is imposed under Section 2 of
6 the Retailers' Occupation Tax Act; and
7 (4) the applicable surcharge from Section 10(a)(2) of
8 this Act to be paid by the operator.
9 Notwithstanding any other provision of this subsection
10concerning the time within which an operator may file his or
11her return, if an operator ceases to operates a live adult
12entertainment facility, then he or she must file a final return
13under this Act with the Department not more than one calendar
14month after discontinuing that business.
15 (d) Beginning January 1, 2014, the Department shall pay all
16proceeds collected from the surcharge imposed under this Act
17into the Sexual Assault Services and Prevention Fund, less 2%
18of those proceeds, which shall be paid into the Tax Compliance
19and Administration Fund in the State treasury from which it
20shall be appropriated to the Department to cover the costs of
21the Department in administering and enforcing the provisions of
22this Act.
23 Section 15. The Sexual Assault Services and Prevention
24Fund.
25 (a) The Sexual Assault Services and Prevention Fund is

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1created as a special fund in the State treasury. From
2appropriations from the Fund, the Department of Human Services
3shall make grants to sexual assault organizations with whom the
4Department has contracts for the purpose of providing
5community-based assistance to victims of sexual assault and for
6activities concerning the prevention of sexual assault. Moneys
7received for the purposes of this Act, including, without
8limitation, surcharge proceeds and gifts, grants, and awards
9from any public or private entity, must be deposited into the
10Fund. Any interest earnings that are attributable to moneys in
11the Fund must be deposited into the Fund.
12 (b) Notwithstanding any transfers authorized under
13subsection (e) of Section 10 of this Act, the Fund is not
14subject to sweeps, charge-backs, or any other fiscal or
15budgetary maneuver that would in any way transfer any moneys
16from the Fund into any other fund of the State.
17 Section 20. Books and records. Every operator electing to
18pay the surcharge pursuant to item (1) of subsection (a) of
19Section 10 of this Act shall record the admissions of customers
20subject to the surcharge under this Act.
21 Section 25. Application of Retailers' Occupation Tax
22provisions; Uniform Penalty and Interest Act provisions. All
23the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
245i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers'

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1Occupation Tax Act that are not inconsistent with this Act
2apply, as far as practicable, to the surcharge imposed by this
3Act to the same extent as if those provisions were included in
4this Act. References in the incorporated Sections of the
5Retailers' Occupation Tax Act to retailers, to sellers, or to
6persons engaged in the business of selling tangible personal
7property mean operators. All provisions of the Uniform Penalty
8and Interest Act which are not inconsistent with this Act shall
9apply.
10 Section 30. Hearing; notice. The Department may adopt and
11enforce any reasonable rule to administer and enforce the
12surcharge imposed by this Act.
13 Section 40. Review under the Administrative Review Law.
14 (a) The circuit court of any county in which a hearing is
15held has the power to review all final administrative decisions
16of the Department in administering the surcharge imposed under
17this Act. The term "administrative decision" is defined as in
18Section 3-101 of the Code of Civil Procedure.
19 Section 45. Penalty. Any operator who fails to make a
20return or who makes a fraudulent return is guilty of a Class 4
21felony.
22 Section 90. The State Finance Act is amended by adding

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1Section 5.811 as follows:
2 (30 ILCS 105/5.811 new)
3 Sec. 5.811. The Sexual Assault Services and Prevention
4Fund.
5 Section 97. Severability. The provisions of this Act are
6severable under Section 1.31 of the Statute on Statutes.
7 Section 99. Effective date. This Act takes effect upon
8becoming law.".
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