Bill Text: IL HB4660 | 2013-2014 | 98th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Retailers' Occupation Tax Act. Provides that the Department of Revenue shall give notice at least 60 days (instead of 120 days) before the expiration date of a certificate of registration if the certificate of registration will not be renewed because the taxpayer is in default for delinquent returns or for moneys due under any State tax law or municipal or county ordinance administered or enforced by the Department of Revenue.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB4660 Detail]
Download: Illinois-2013-HB4660-Introduced.html
Bill Title: Amends the Retailers' Occupation Tax Act. Provides that the Department of Revenue shall give notice at least 60 days (instead of 120 days) before the expiration date of a certificate of registration if the certificate of registration will not be renewed because the taxpayer is in default for delinquent returns or for moneys due under any State tax law or municipal or county ordinance administered or enforced by the Department of Revenue.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB4660 Detail]
Download: Illinois-2013-HB4660-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Retailers' Occupation Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 2a as follows:
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6 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||||||||||||||||||||||||
7 | Sec. 2a. It is unlawful for any person to engage in the | ||||||||||||||||||||||||
8 | business of
selling tangible personal property at retail in | ||||||||||||||||||||||||
9 | this State without a
certificate of registration from the | ||||||||||||||||||||||||
10 | Department. Application
for a certificate of registration | ||||||||||||||||||||||||
11 | shall be made to the Department upon
forms furnished by it. | ||||||||||||||||||||||||
12 | Each such application shall be signed and verified
and shall | ||||||||||||||||||||||||
13 | state: (1) the name and social security number of the
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14 | applicant; (2) the address of his principal place
of business; | ||||||||||||||||||||||||
15 | (3) the address of the principal place of business from which
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16 | he engages in the business of selling tangible personal | ||||||||||||||||||||||||
17 | property at retail
in this State and the addresses of all other | ||||||||||||||||||||||||
18 | places of business, if any
(enumerating such addresses, if any, | ||||||||||||||||||||||||
19 | in a separate list attached to and
made a part of the | ||||||||||||||||||||||||
20 | application), from which he engages in the business of
selling | ||||||||||||||||||||||||
21 | tangible personal property at retail in this State; (4)
the
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22 | name and address of the person or persons who will be | ||||||||||||||||||||||||
23 | responsible for
filing returns and payment of taxes due under |
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1 | this Act; (5) in the case of a publicly traded corporation, the | ||||||
2 | name and title of the Chief Financial Officer, Chief Operating | ||||||
3 | Officer, and any other officer or employee with responsibility | ||||||
4 | for preparing tax returns under this Act, along with the last 4 | ||||||
5 | digits of each of their social security numbers, and , in the
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6 | case of
all other corporations, the name, title, and social | ||||||
7 | security number of
each corporate officer; (6) in the case of a | ||||||
8 | limited liability
company, the
name, social security number, | ||||||
9 | and FEIN number of
each
manager and member; and (7) such other | ||||||
10 | information
as the Department may reasonably require. The | ||||||
11 | application shall contain
an acceptance of responsibility | ||||||
12 | signed by the person or persons who will be
responsible for | ||||||
13 | filing returns and payment of the taxes due under this
Act. If | ||||||
14 | the applicant will sell tangible personal property at retail
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15 | through vending machines, his application to register shall | ||||||
16 | indicate the
number of vending machines to be so operated. If | ||||||
17 | requested by the Department at any time, that person shall | ||||||
18 | verify the total number of vending machines he or she uses in | ||||||
19 | his or her business of selling tangible personal property at | ||||||
20 | retail. | ||||||
21 | The Department may deny a certificate of registration to | ||||||
22 | any applicant
if a person who is named as the owner, a partner, | ||||||
23 | a manager or member of a limited liability
company, or a | ||||||
24 | corporate officer of the applicant on the application for the | ||||||
25 | certificate of registration , is or
has been named as the owner, | ||||||
26 | a partner, a manager or member of a limited
liability company, |
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1 | or a corporate officer , on the application for the certificate | ||||||
2 | of registration of another retailer
that is in default for | ||||||
3 | moneys due under this Act or any other tax or fee Act | ||||||
4 | administered by the Department. For purposes of this paragraph | ||||||
5 | only, in determining whether a person is in default for moneys | ||||||
6 | due, the Department shall include only amounts established as a | ||||||
7 | final liability within the 20 years prior to the date of the | ||||||
8 | Department's notice of denial of a certificate of registration. | ||||||
9 | The Department may require an applicant for a certificate | ||||||
10 | of registration hereunder to, at
the time of filing such | ||||||
11 | application, furnish a bond from a surety company
authorized to | ||||||
12 | do business in the State of Illinois, or an irrevocable
bank | ||||||
13 | letter of credit or a bond signed by 2
personal sureties who | ||||||
14 | have filed, with the Department, sworn statements
disclosing | ||||||
15 | net assets equal to at least 3 times the amount of the bond to
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16 | be required of such applicant, or a bond secured by an | ||||||
17 | assignment of a bank
account or certificate of deposit, stocks | ||||||
18 | or bonds, conditioned upon the
applicant paying to the State of | ||||||
19 | Illinois all moneys becoming due under
this Act and under any | ||||||
20 | other State tax law or municipal or county tax
ordinance or | ||||||
21 | resolution under which the certificate of registration that is
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22 | issued to the applicant under this Act will permit the | ||||||
23 | applicant to engage
in business without registering separately | ||||||
24 | under such other law, ordinance
or resolution. In making a | ||||||
25 | determination as to whether to require a bond or other | ||||||
26 | security, the Department shall take into consideration whether |
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1 | the owner, any partner, any manager or member of a limited | ||||||
2 | liability company, or a corporate officer of the applicant is | ||||||
3 | or has been the owner, a partner, a manager or member of a | ||||||
4 | limited liability company, or a corporate officer of another | ||||||
5 | retailer that is in default for moneys due under this Act or | ||||||
6 | any other tax or fee Act administered by the Department; and | ||||||
7 | whether the owner, any partner, any manager or member of a | ||||||
8 | limited liability company, or a corporate officer of the | ||||||
9 | applicant is or has been the owner, a partner, a manager or | ||||||
10 | member of a limited liability company, or a corporate officer | ||||||
11 | of another retailer whose certificate of registration has been | ||||||
12 | revoked within the previous 5 years under this Act or any other | ||||||
13 | tax or fee Act administered by the Department. If a bond or | ||||||
14 | other security is required, the Department shall fix the amount | ||||||
15 | of the bond or other security, taking into consideration the | ||||||
16 | amount of money expected to become due from the applicant under | ||||||
17 | this Act and under any other State tax law or municipal or | ||||||
18 | county tax ordinance or resolution under which the certificate | ||||||
19 | of registration that is issued to the applicant under this Act | ||||||
20 | will permit the applicant to engage in business without | ||||||
21 | registering separately under such other law, ordinance, or | ||||||
22 | resolution. The amount of security required by
the Department | ||||||
23 | shall be such as, in its opinion, will protect the State of
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24 | Illinois against failure to pay the amount which may become due | ||||||
25 | from the
applicant under this Act and under any other State tax | ||||||
26 | law or municipal or
county tax ordinance or resolution under |
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1 | which the certificate of
registration that is issued to the | ||||||
2 | applicant under this Act will permit the
applicant to engage in | ||||||
3 | business without registering separately under such
other law, | ||||||
4 | ordinance or resolution, but the amount of the security | ||||||
5 | required
by the Department shall not exceed three times the | ||||||
6 | amount of the
applicant's average monthly tax liability, or | ||||||
7 | $50,000.00, whichever amount
is lower. | ||||||
8 | No certificate of registration under this Act shall be | ||||||
9 | issued by the
Department until the applicant provides the | ||||||
10 | Department with satisfactory
security, if required, as herein | ||||||
11 | provided for. | ||||||
12 | Upon receipt of the application for certificate of | ||||||
13 | registration in
proper form, and upon approval by the | ||||||
14 | Department of the security furnished
by the applicant, if | ||||||
15 | required, the Department shall issue to such applicant a
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16 | certificate of registration which shall permit the person to | ||||||
17 | whom it is
issued to engage in the business of selling tangible | ||||||
18 | personal property at
retail in this State. The certificate of | ||||||
19 | registration shall be
conspicuously displayed at the place of | ||||||
20 | business which the person so
registered states in his | ||||||
21 | application to be the principal place of business
from which he | ||||||
22 | engages in the business of selling tangible personal property
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23 | at retail in this State. | ||||||
24 | No certificate of registration issued to a taxpayer who | ||||||
25 | files returns
required by this Act on a monthly basis shall be | ||||||
26 | valid after the expiration
of 5 years from the date of its |
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1 | issuance or last renewal. The expiration
date of a | ||||||
2 | sub-certificate of registration shall be that of the | ||||||
3 | certificate
of registration to which the sub-certificate | ||||||
4 | relates. A certificate of
registration shall automatically be | ||||||
5 | renewed, subject to revocation as
provided by this Act, for an | ||||||
6 | additional 5 years from the date of its
expiration unless | ||||||
7 | otherwise notified by the Department as provided by this
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8 | paragraph. Where a taxpayer to whom a certificate of | ||||||
9 | registration is
issued under this Act is in default to the | ||||||
10 | State of Illinois for delinquent
returns or for moneys due
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11 | under this Act or any other State tax law or municipal or | ||||||
12 | county ordinance
administered or enforced by the Department, | ||||||
13 | the Department shall, not less
than 60 120 days before the | ||||||
14 | expiration date of such certificate of
registration, give | ||||||
15 | notice to the taxpayer to whom the certificate was
issued of | ||||||
16 | the account period of the delinquent returns, the amount of
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17 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
18 | that the certificate of registration shall not be
automatically | ||||||
19 | renewed upon its expiration date unless the taxpayer, on or
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20 | before the date of expiration, has filed and paid the | ||||||
21 | delinquent returns or
paid the defaulted amount in full. A
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22 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
23 | applicant for
renewal. The Department shall promulgate | ||||||
24 | regulations establishing
procedures for taxpayers who file | ||||||
25 | returns on a monthly basis but desire and
qualify to change to | ||||||
26 | a quarterly or yearly filing basis and will no longer
be |
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1 | subject to renewal under this Section, and for taxpayers who | ||||||
2 | file
returns on a yearly or quarterly basis but who desire or | ||||||
3 | are required to
change to a monthly filing basis and will be | ||||||
4 | subject to renewal under
this Section. | ||||||
5 | The Department may in its discretion approve renewal by an | ||||||
6 | applicant
who is in default if, at the time of application for | ||||||
7 | renewal, the applicant
files all of the delinquent returns or | ||||||
8 | pays to the Department such
percentage of the defaulted amount | ||||||
9 | as may be
determined by the Department and agrees in writing to | ||||||
10 | waive all limitations
upon the Department for collection of the | ||||||
11 | remaining defaulted amount to the
Department over a period not | ||||||
12 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
13 | however, no renewal application submitted by an applicant
who | ||||||
14 | is in default shall be approved if the immediately preceding | ||||||
15 | renewal by
the applicant was conditioned upon the installment | ||||||
16 | payment
agreement described in this Section. The payment | ||||||
17 | agreement herein provided
for shall be in addition to and not | ||||||
18 | in lieu of the security that may be required by
this Section of | ||||||
19 | a taxpayer who is no longer considered a prior continuous
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20 | compliance taxpayer. The execution of the payment agreement as | ||||||
21 | provided in
this Act shall not toll the accrual of interest at | ||||||
22 | the statutory rate. | ||||||
23 | The Department may suspend a certificate of registration if | ||||||
24 | the Department finds that the person to whom the certificate of | ||||||
25 | registration has been issued knowingly sold contraband | ||||||
26 | cigarettes. |
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1 | A certificate of registration issued under this Act more | ||||||
2 | than 5 years
before the effective date of this amendatory Act | ||||||
3 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
4 | of this Section on the next
anniversary of the date of issuance | ||||||
5 | of such certificate which occurs more
than 6 months after the | ||||||
6 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
7 | registration issued less than 5 years before the effective
date | ||||||
8 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
9 | the
renewal provisions of this Section on the 5th anniversary | ||||||
10 | of the issuance
of the certificate. | ||||||
11 | If the person so registered states that he operates other | ||||||
12 | places of
business from which he engages in the business of | ||||||
13 | selling tangible personal
property at retail in this State, the | ||||||
14 | Department shall furnish him with a
sub-certificate of | ||||||
15 | registration for each such place of business, and the
applicant | ||||||
16 | shall display the appropriate sub-certificate of registration | ||||||
17 | at
each such place of business. All sub-certificates of | ||||||
18 | registration shall
bear the same registration number as that | ||||||
19 | appearing upon the certificate of
registration to which such | ||||||
20 | sub-certificates relate. | ||||||
21 | If the applicant will sell tangible personal property at | ||||||
22 | retail through
vending machines, the Department shall furnish | ||||||
23 | him with a sub-certificate
of registration for each such | ||||||
24 | vending machine, and the applicant shall
display the | ||||||
25 | appropriate sub-certificate of registration on each such
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26 | vending machine by attaching the sub-certificate of |
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1 | registration to a
conspicuous part of such vending machine. If | ||||||
2 | a person who is registered to sell tangible personal property | ||||||
3 | at retail through vending machines adds an additional vending | ||||||
4 | machine or additional vending machines to the number of vending | ||||||
5 | machines he or she uses in his or her business of selling | ||||||
6 | tangible personal property at retail, he or she shall notify | ||||||
7 | the Department, on a form prescribed by the Department, to | ||||||
8 | request an additional sub-certificate or additional | ||||||
9 | sub-certificates of registration, as applicable. With each | ||||||
10 | such request, the applicant shall report the number of | ||||||
11 | sub-certificates of registration he or she is requesting as | ||||||
12 | well as the total number of vending machines from which he or | ||||||
13 | she makes retail sales. | ||||||
14 | Where the same person engages in 2 or more businesses of | ||||||
15 | selling
tangible personal property at retail in this State, | ||||||
16 | which businesses are
substantially different in character or | ||||||
17 | engaged in under different trade
names or engaged in under | ||||||
18 | other substantially dissimilar circumstances (so
that it is | ||||||
19 | more practicable, from an accounting, auditing or bookkeeping
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20 | standpoint, for such businesses to be separately registered), | ||||||
21 | the
Department may require or permit such person (subject to | ||||||
22 | the same
requirements concerning the furnishing of security as | ||||||
23 | those that are
provided for hereinbefore in this Section as to | ||||||
24 | each application for a
certificate of registration) to apply | ||||||
25 | for and obtain a separate certificate
of registration for each | ||||||
26 | such business or for any of such businesses, under
a single |
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1 | certificate of registration supplemented by related
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2 | sub-certificates of registration. | ||||||
3 | Any person who is registered under the "Retailers' | ||||||
4 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
5 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
6 | continuous 3-year period part of which passed
immediately | ||||||
7 | before and the remainder of which passes immediately after
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8 | March 8, 1963, has been so registered continuously and who is | ||||||
9 | determined by
the Department not to have been either delinquent | ||||||
10 | or deficient in the
payment of tax liability during that period | ||||||
11 | under this Act or under any
other State tax law or municipal or | ||||||
12 | county tax ordinance or resolution
under which the certificate | ||||||
13 | of registration that is issued to the
registrant under this Act | ||||||
14 | will permit the registrant to engage in business
without | ||||||
15 | registering separately under such other law, ordinance or
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16 | resolution, shall be considered to be a Prior Continuous | ||||||
17 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
18 | the Department,
faithfully and continuously complied with the | ||||||
19 | condition of his bond or
other security under the provisions of | ||||||
20 | this Act for a period of 3
consecutive years shall be | ||||||
21 | considered to be a Prior Continuous Compliance
taxpayer. | ||||||
22 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
23 | from all
requirements under this Act concerning the furnishing | ||||||
24 | of a bond or other security as a
condition precedent to his | ||||||
25 | being authorized to engage in the business of
selling tangible | ||||||
26 | personal property at retail in this State. This exemption
shall |
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1 | continue for each such taxpayer until such time as he may be
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2 | determined by the Department to be delinquent in the filing of | ||||||
3 | any returns,
or is determined by the Department (either through | ||||||
4 | the Department's
issuance of a final assessment which has | ||||||
5 | become final under the Act, or by
the taxpayer's filing of a | ||||||
6 | return which admits tax that is not paid to be
due) to be | ||||||
7 | delinquent or deficient in the paying of any tax under this Act
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8 | or under any other State tax law or municipal or county tax | ||||||
9 | ordinance or
resolution under which the certificate of | ||||||
10 | registration that is issued to
the registrant under this Act | ||||||
11 | will permit the registrant to engage in
business without | ||||||
12 | registering separately under such other law, ordinance or
| ||||||
13 | resolution, at which time that taxpayer shall become subject to | ||||||
14 | all the
financial responsibility requirements of this Act and, | ||||||
15 | as a condition of
being allowed to continue to engage in the | ||||||
16 | business of selling tangible
personal property at retail, may | ||||||
17 | be required to post bond or other
acceptable security with the | ||||||
18 | Department covering liability which such
taxpayer may | ||||||
19 | thereafter incur. Any taxpayer who fails to pay an admitted or
| ||||||
20 | established liability under this Act may also be required to | ||||||
21 | post bond or
other acceptable security with this Department | ||||||
22 | guaranteeing the payment of
such admitted or established | ||||||
23 | liability. | ||||||
24 | No certificate of registration shall be issued to any | ||||||
25 | person who is in
default to the State of Illinois for moneys | ||||||
26 | due under this Act or under any
other State tax law or |
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1 | municipal or county tax ordinance or resolution
under which the | ||||||
2 | certificate of registration that is issued to the applicant
| ||||||
3 | under this Act will permit the applicant to engage in business | ||||||
4 | without
registering separately under such other law, ordinance | ||||||
5 | or resolution. | ||||||
6 | Any person aggrieved by any decision of the Department | ||||||
7 | under this
Section may, within 20 days after notice of such | ||||||
8 | decision, protest and
request a hearing, whereupon the | ||||||
9 | Department shall give notice to such
person of the time and | ||||||
10 | place fixed for such hearing and shall hold a
hearing in | ||||||
11 | conformity with the provisions of this Act and then issue its
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12 | final administrative decision in the matter to such person. In | ||||||
13 | the absence
of such a protest within 20 days, the Department's | ||||||
14 | decision shall become
final without any further determination | ||||||
15 | being made or notice given. | ||||||
16 | With respect to security other than bonds (upon which the | ||||||
17 | Department may
sue in the event of a forfeiture), if the | ||||||
18 | taxpayer fails to pay, when due,
any amount whose payment such | ||||||
19 | security guarantees, the Department shall,
after such | ||||||
20 | liability is admitted by the taxpayer or established by the
| ||||||
21 | Department through the issuance of a final assessment that has | ||||||
22 | become final
under the law, convert the security which that | ||||||
23 | taxpayer has furnished into
money for the State, after first | ||||||
24 | giving the taxpayer at least 10 days'
written notice, by | ||||||
25 | registered or certified mail, to pay the liability or
forfeit | ||||||
26 | such security to the Department. If the security consists of |
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1 | stocks
or bonds or other securities which are listed on a | ||||||
2 | public exchange, the
Department shall sell such securities | ||||||
3 | through such public exchange. If
the security consists of an | ||||||
4 | irrevocable bank letter of credit, the
Department shall convert | ||||||
5 | the security in the manner provided for in the
Uniform | ||||||
6 | Commercial Code. If the security consists of a bank certificate | ||||||
7 | of
deposit, the Department shall convert the security into | ||||||
8 | money by demanding
and collecting the amount of such bank | ||||||
9 | certificate of deposit from the bank
which issued such | ||||||
10 | certificate. If the security consists of a type of stocks
or | ||||||
11 | other securities which are not listed on a public exchange, the
| ||||||
12 | Department shall sell such security to the highest and best | ||||||
13 | bidder after
giving at least 10 days' notice of the date, time | ||||||
14 | and place of the intended
sale by publication in the "State | ||||||
15 | Official Newspaper". If the Department
realizes more than the | ||||||
16 | amount of such liability from the security, plus the
expenses | ||||||
17 | incurred by the Department in converting the security into | ||||||
18 | money,
the Department shall pay such excess to the taxpayer who | ||||||
19 | furnished such
security, and the balance shall be paid into the | ||||||
20 | State Treasury. | ||||||
21 | The Department shall discharge any surety and shall release | ||||||
22 | and return
any security deposited, assigned, pledged or | ||||||
23 | otherwise provided to it by
a taxpayer under this Section | ||||||
24 | within 30 days after: | ||||||
25 | (1) such taxpayer becomes a Prior Continuous | ||||||
26 | Compliance taxpayer; or |
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1 | (2) such taxpayer has ceased to collect receipts on | ||||||
2 | which he is required
to remit tax to the Department, has | ||||||
3 | filed a final tax return, and has paid
to the Department an | ||||||
4 | amount sufficient to discharge his remaining tax
| ||||||
5 | liability, as determined by the Department, under this Act | ||||||
6 | and under every
other State tax law or municipal or county | ||||||
7 | tax ordinance or resolution
under which the certificate of | ||||||
8 | registration issued under this Act permits
the registrant | ||||||
9 | to engage in business without registering separately under
| ||||||
10 | such other law, ordinance or resolution. The Department | ||||||
11 | shall make a final
determination of the taxpayer's | ||||||
12 | outstanding tax liability as expeditiously
as possible | ||||||
13 | after his final tax return has been filed; if the | ||||||
14 | Department
cannot make such final determination within 45 | ||||||
15 | days after receiving the
final tax return, within such | ||||||
16 | period it shall so notify the taxpayer,
stating its reasons | ||||||
17 | therefor. | ||||||
18 | (Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583, | ||||||
19 | eff. 1-1-14; revised 9-9-13.)
|