Bill Text: IL SB1732 | 2015-2016 | 99th General Assembly | Engrossed

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Bill Title: Amends the State Finance Act to create the Sales and Excise Tax Refund Fund. Provides that moneys in the Fund shall be used by the Department of Revenue to pay refunds under various tax Acts. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to provide that 0.18% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property shall be deposited each month into the Sales and Excise Tax Refund Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, the Coin-Operated Amusement Device and Redemption Machine Tax Act, the Messages Tax Act, the Gas Revenue Tax Act, the Public Utilities Revenue Act, the Water Company Invested Capital Tax Act, the Telecommunications Excise Tax Act, and the Liquor Control Act of 1934 to provide that refunds shall be made under those Acts from the Sales and Excise Tax Refund Fund (instead of from appropriations made available for that purpose). Effective July 1, 2015.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2015-05-15 - Rule 19(a) / Re-referred to Rules Committee [SB1732 Detail]

Download: Illinois-2015-SB1732-Engrossed.html

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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Sections 5.866 and 6z-101 as follows:
(30 ILCS 105/5.866 new)
Sec. 5.866. The Sales and Excise Tax Refund Fund.
(30 ILCS 105/6z-101 new)
Sec. 6z-101. The Sales and Excise Tax Refund Fund.
(a) The Sales and Excise Tax Refund Fund is hereby created
as a special fund in the State Treasury. Moneys in the Fund
shall be used by the Department of Revenue to pay refunds as
provided in Section 19 of the Use Tax Act, Section 17 of the
Service Use Tax Act, Section 17 of the Service Occupation Tax
Act, Section 6 of the Retailers' Occupation Tax Act, Section
1-55 of the Cigarette Machine Operators' Occupation Tax Act,
Section 9d of the Cigarette Tax Act, Section 14a of the
Cigarette Use Tax Act, Section 2 of the Coin-Operated Amusement
Device and Redemption Machine Tax Act, Section 6 of the
Messages Tax Act, Section 6 of the Gas Revenue Tax Act, Section
6 of the Public Utilities Revenue Act, Section 6 of the Water
Company Invested Capital Tax Act, Section 10 of the

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Telecommunications Excise Tax Act, Section 8-3 of the Liquor
Control Act, and any other Act that authorizes, either directly
or by incorporation of provisions of another Act, payment of
refunds out of the Fund, as well as to pay to the State
Treasurer the amount of any credit memorandums or refunds under
the Acts covered by this Section that qualify as unclaimed
property under the Uniform Disposition of Unclaimed Property
Act.
(b) Moneys in the Sales and Excise Tax Refund Fund shall be
expended exclusively for the purpose of paying refunds, paying
unclaimed property, and making transfers, all pursuant to this
Section.
(c) The Director of Revenue shall order payment of refunds
under this Section from the Sales and Excise Tax Refund Fund
only to the extent that amounts collected pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Occupation Tax Act, and Section 9
of the Service Use Tax Act have been deposited and retained in
the Fund.
As soon as possible after the end of each fiscal year, the
Director of Revenue shall order transferred and the State
Treasurer and State Comptroller shall transfer from the Sales
and Excise Tax Refund Fund to the General Revenue Fund any
surplus remaining in the Sales and Excise Tax Refund Fund as of
the end of such fiscal year.
This Section shall constitute an irrevocable and

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continuing appropriation from the Sales and Excise Tax Refund
Fund for the purpose of paying refunds and unclaimed property
upon the order of the Director in accordance with the
provisions of this Section.
Section 10. The Use Tax Act is amended by changing Sections
9 and 19 as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The Department
may disallow the discount for retailers whose certificate of

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registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A retailer need not remit that
part of any tax collected by him to the extent that he is
required to remit and does remit the tax imposed by the
Retailers' Occupation Tax Act, with respect to the sale of the
same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The

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taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has

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an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.

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Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is

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incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which

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such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's

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average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.

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If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be

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liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the

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Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle or trailer retailer for the purpose
of resale or (ii) a retailer of aircraft, watercraft, motor
vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 3-55 of this
Act, then that seller may report the transfer of all the
aircraft, watercraft, motor vehicles or trailers involved in
that transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
The transaction reporting return in the case of motor

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vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the

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extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the

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Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to

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the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also

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include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,

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drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall

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pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act (CAA) Permit Fund under this Act
and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an

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amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be

SB1732 Engrossed - 22 - LRB099 10341 HLH 30568 b
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the

SB1732 Engrossed - 23 - LRB099 10341 HLH 30568 b
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment

SB1732 Engrossed - 24 - LRB099 10341 HLH 30568 b
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000

SB1732 Engrossed - 25 - LRB099 10341 HLH 30568 b
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and

SB1732 Engrossed - 26 - LRB099 10341 HLH 30568 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Beginning on July 1, 2015, subject to payment of amounts
into the Capital Projects Fund, the Clean Air Act (CAA) Permit
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, the Department
shall each month deposit into the Sales and Excise Tax Refund

SB1732 Engrossed - 27 - LRB099 10341 HLH 30568 b
Fund 0.18% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate on the selling price of
tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax

SB1732 Engrossed - 28 - LRB099 10341 HLH 30568 b
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from

SB1732 Engrossed - 29 - LRB099 10341 HLH 30568 b
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
98-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
(35 ILCS 105/19) (from Ch. 120, par. 439.19)
Sec. 19. If it shall appear that an amount of tax or
penalty or interest has been paid in error hereunder to the
Department by a purchaser, as distinguished from the retailer,
whether such amount be paid through a mistake of fact or an
error of law, such purchaser may file a claim for credit or
refund with the Department in accordance with Sections 6, 6a,

SB1732 Engrossed - 30 - LRB099 10341 HLH 30568 b
6b, and 6c of the Retailers' Occupation Tax Act. If it shall
appear that an amount of tax or penalty or interest has been
paid in error to the Department hereunder by a retailer who is
required or authorized to collect and remit the use tax,
whether such amount be paid through a mistake of fact or an
error of law, such retailer may file a claim for credit or
refund with the Department in accordance with Sections 6, 6a,
6b, and 6c of the Retailers' Occupation Tax Act, provided that
no credit or refund shall be allowed for any amount paid by any
such retailer unless it shall appear that he bore the burden of
such amount and did not shift the burden thereof to anyone else
(as in the case of a duplicated tax payment which the retailer
made to the Department and did not collect from anyone else),
or unless it shall appear that he or she or his or her legal
representative has unconditionally repaid such amount to his
vendee (1) who bore the burden thereof and has not shifted such
burden directly or indirectly in any manner whatsoever; (2)
who, if he has shifted such burden, has repaid unconditionally
such amount to his or her own vendee, and (3) who is not
entitled to receive any reimbursement therefor from any other
source than from his vendor, nor to be relieved of such burden
in any other manner whatsoever. If it shall appear that an
amount of tax has been paid in error hereunder by the purchaser
to a retailer, who retained such tax as reimbursement for his
or her tax liability on the same sale under the Retailers'
Occupation Tax Act, and who remitted the amount involved to the

SB1732 Engrossed - 31 - LRB099 10341 HLH 30568 b
Department under the Retailers' Occupation Tax Act, whether
such amount be paid through a mistake of fact or an error of
law, the procedure for recovering such tax shall be that
prescribed in Sections 6, 6a, 6b and 6c of the Retailers'
Occupation Tax Act.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
Any claim filed hereunder shall be filed upon a form
prescribed and furnished by the Department. The claim shall be
signed by the claimant (or by the claimant's legal
representative if the claimant shall have died or become a
person under legal disability), or by a duly authorized agent
of the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have
been filed with the Department on the date upon which it is
received by the Department. Upon receipt of any claim for
credit or refund filed under this Act, any officer or employee
of the Department, authorized in writing by the Director of
Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and
shall deliver or mail to the claimant or his duly authorized
agent, a written receipt, acknowledging that the claim has been
filed with the Department, describing the claim in sufficient
detail to identify it and stating the date upon which the claim
was received by the Department. Such written receipt shall be

SB1732 Engrossed - 32 - LRB099 10341 HLH 30568 b
prima facie evidence that the Department received the claim
described in such receipt and shall be prima facie evidence of
the date when such claim was received by the Department. In the
absence of such a written receipt, the records of the
Department as to when the claim was received by the Department,
or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon
these questions in the event of any dispute between the
claimant (or his or her legal representative) and the
Department concerning these questions.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
If a retailer who has failed to pay use tax on gross
receipts from retail sales is required by the Department to pay
such tax, such retailer, without filing any formal claim with
the Department, shall be allowed to take credit against such
use tax liability to the extent, if any, to which such retailer
has paid an amount equivalent to retailers' occupation tax or

SB1732 Engrossed - 33 - LRB099 10341 HLH 30568 b
has paid use tax in error to his or her vendor or vendors of the
same tangible personal property which such retailer bought for
resale and did not first use before selling it, and no penalty
or interest shall be charged to such retailer on the amount of
such credit. However, when such credit is allowed to the
retailer by the Department, the vendor is precluded from
refunding any of that tax to the retailer and filing a claim
for credit or refund with respect thereto with the Department.
The provisions of this amendatory Act shall be applied
retroactively, regardless of the date of the transaction.
(Source: P.A. 90-562, eff. 12-16-97.)
Section 15. The Service Use Tax Act is amended by changing
Sections 9 and 17 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The Department may

SB1732 Engrossed - 34 - LRB099 10341 HLH 30568 b
disallow the discount for servicemen whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A serviceman need not remit that
part of any tax collected by him to the extent that he is
required to pay and does pay the tax imposed by the Service
Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him

SB1732 Engrossed - 35 - LRB099 10341 HLH 30568 b
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the

SB1732 Engrossed - 36 - LRB099 10341 HLH 30568 b
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the

SB1732 Engrossed - 37 - LRB099 10341 HLH 30568 b
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this

SB1732 Engrossed - 38 - LRB099 10341 HLH 30568 b
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint

SB1732 Engrossed - 39 - LRB099 10341 HLH 30568 b
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.

SB1732 Engrossed - 40 - LRB099 10341 HLH 30568 b
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.

SB1732 Engrossed - 41 - LRB099 10341 HLH 30568 b
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to

SB1732 Engrossed - 42 - LRB099 10341 HLH 30568 b
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond

SB1732 Engrossed - 43 - LRB099 10341 HLH 30568 b
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.

SB1732 Engrossed - 44 - LRB099 10341 HLH 30568 b
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000

SB1732 Engrossed - 45 - LRB099 10341 HLH 30568 b
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the

SB1732 Engrossed - 46 - LRB099 10341 HLH 30568 b
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Beginning on July 1, 2015, subject to payment of amounts
into the Capital Projects Fund, the Build Illinois Fund, and
the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, the Department shall each month deposit into the Sales
and Excise Tax Refund Fund 0.18% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling

SB1732 Engrossed - 47 - LRB099 10341 HLH 30568 b
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to

SB1732 Engrossed - 48 - LRB099 10341 HLH 30568 b
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;

SB1732 Engrossed - 49 - LRB099 10341 HLH 30568 b
98-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
98-1098, eff. 8-26-14.)
(35 ILCS 110/17) (from Ch. 120, par. 439.47)
Sec. 17. If it shall appear that an amount of tax or
penalty or interest has been paid in error hereunder to the
Department by a purchaser, as distinguished from the
serviceman, whether such amount be paid through a mistake of
fact or an error of law, such purchaser may file a claim for
credit or refund with the Department. If it shall appear that
an amount of tax or penalty or interest has been paid in error
to the Department hereunder by a serviceman who is required or
authorized to collect and remit the Service Use Tax, whether
such amount be paid through a mistake of fact or an error of
law, such serviceman may file a claim for credit or refund with
the Department, provided that no credit shall be allowed or
refund made for any amount paid by any such serviceman unless
it shall appear that he bore the burden of such amount and did
not shift the burden thereof to anyone else (as in the case of
a duplicated tax payment which the serviceman made to the
Department and did not collect from anyone else), or unless it
shall appear that he or his legal representative has
unconditionally repaid such amount to his vendee (1) who bore
the burden thereof and has not shifted such burden directly or
indirectly in any manner whatsoever; (2) who, if he has shifted
such burden, has repaid unconditionally such amount to his own

SB1732 Engrossed - 50 - LRB099 10341 HLH 30568 b
vendee, and (3) who is not entitled to receive any
reimbursement therefor from any other source than from his
vendor, nor to be relieved of such burden in any other manner
whatsoever. If it shall appear that an amount of tax has been
paid in error hereunder by the purchaser to a serviceman, who
retained such tax as reimbursement for his tax liability on the
same sale of service under the Service Occupation Tax Act, and
who paid such tax as required by the Service Occupation Tax
Act, whether such amount be paid through a mistake of fact or
an error of law, the procedure for recovering such tax shall be
that prescribed in Sections 17, 18, 19 and 20 of the Service
Occupation Tax Act.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
Any claim filed hereunder shall be filed upon a form
prescribed and furnished by the Department. The claim shall be
signed by the claimant (or by the claimant's legal
representative if the claimant shall have died or become a
person under legal disability), or by a duly authorized agent
of the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have
been filed with the Department on the date upon which it is
received by the Department. Upon receipt of any claim for
credit or refund filed under this Act, any officer or employee
of the Department, authorized in writing by the Director of

SB1732 Engrossed - 51 - LRB099 10341 HLH 30568 b
Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and
shall deliver or mail to the claimant or his duly authorized
agent, a written receipt, acknowledging that the claim has been
filed with the Department, describing the claim in sufficient
detail to identify it and stating the date upon which the claim
was received by the Department. Such written receipt shall be
prima facie evidence that the Department received the claim
described in such receipt and shall be prima facie evidence of
the date when such claim was received by the Department. In the
absence of such a written receipt, the records of the
Department as to when the claim was received by the Department,
or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon
these questions in the event of any dispute between the
claimant (or his or her legal representative) and the
Department concerning these questions.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as

SB1732 Engrossed - 52 - LRB099 10341 HLH 30568 b
hardship cases.
(Source: P.A. 87-205.)
Section 20. The Service Occupation Tax Act is amended by
changing Sections 9 and 17 as follows:
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The Department may disallow
the discount for servicemen whose certificate of registration
is revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for

SB1732 Engrossed - 53 - LRB099 10341 HLH 30568 b
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;

SB1732 Engrossed - 54 - LRB099 10341 HLH 30568 b
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.

SB1732 Engrossed - 55 - LRB099 10341 HLH 30568 b
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being
due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after

SB1732 Engrossed - 56 - LRB099 10341 HLH 30568 b
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.

SB1732 Engrossed - 57 - LRB099 10341 HLH 30568 b
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit

SB1732 Engrossed - 58 - LRB099 10341 HLH 30568 b
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax on sales of food for human
consumption which is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks and food
which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics.

SB1732 Engrossed - 59 - LRB099 10341 HLH 30568 b
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax

SB1732 Engrossed - 60 - LRB099 10341 HLH 30568 b
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois

SB1732 Engrossed - 61 - LRB099 10341 HLH 30568 b
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in the
Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such

SB1732 Engrossed - 62 - LRB099 10341 HLH 30568 b
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund

SB1732 Engrossed - 63 - LRB099 10341 HLH 30568 b
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000

SB1732 Engrossed - 64 - LRB099 10341 HLH 30568 b
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000

SB1732 Engrossed - 65 - LRB099 10341 HLH 30568 b
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Beginning on July 1, 2015, subject to payment of amounts
into the Capital Projects Fund, the Build Illinois Fund, and
the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter

SB1732 Engrossed - 66 - LRB099 10341 HLH 30568 b
enacted, the Department shall each month deposit into the Sales
and Excise Tax Refund Fund 0.18% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,

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the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State Finance
Act.
The Department may, upon separate written notice to a

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taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable

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for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act

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for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
98-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
98-1098, eff. 8-26-14.)
(35 ILCS 115/17) (from Ch. 120, par. 439.117)
Sec. 17. If it shall appear that an amount of tax or
penalty or interest has been paid in error hereunder directly
to the Department by a serviceman, whether such amount be paid
through a mistake of fact or an error of law, such serviceman
may file a claim for credit or refund with the Department. If
it shall appear that an amount of tax or penalty or interest
has been paid in error to the Department hereunder by a

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supplier who is required or authorized to collect and remit the
Service Occupation Tax, whether such amount be paid through a
mistake of fact or an error of law, such supplier may file a
claim for credit or refund with the Department, provided that
no credit shall be allowed nor any refund made for any amount
paid by any such supplier unless it shall appear that he bore
the burden of such amount and did not shift the burden thereof
to anyone else (as in the case of a duplicated tax payment
which the supplier made to the Department and did not collect
from anyone else), or unless it shall appear that he or his
legal representative has unconditionally repaid such amount to
his vendee (1) who bore the burden thereof and has not shifted
such burden directly or indirectly in any manner whatsoever;
(2) who, if he has shifted such burden, has repaid
unconditionally such amount to his own vendee, and (3) who is
not entitled to receive any reimbursement therefor from any
other source than from his supplier, nor to be relieved of such
burden in any other manner whatsoever.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
Any claim filed hereunder shall be filed upon a form
prescribed and furnished by the Department. The claim shall be
signed by the claimant (or by the claimant's legal
representative if the claimant shall have died or become a
person under legal disability), or by a duly authorized agent

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of the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have
been filed with the Department on the date upon which it is
received by the Department. Upon receipt of any claim for
credit or refund filed under this Act, any officer or employee
of the Department, authorized in writing by the Director of
Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and
shall deliver or mail to the claimant or his or her duly
authorized agent, a written receipt, acknowledging that the
claim has been filed with the Department, describing the claim
in sufficient detail to identify it and stating the date upon
which the claim was received by the Department. Such written
receipt shall be prima facie evidence that the Department
received the claim described in such receipt and shall be prima
facie evidence of the date when such claim was received by the
Department. In the absence of such a written receipt, the
records of the Department as to when the claim was received by
the Department, or as to whether or not the claim was received
at all by the Department, shall be deemed to be prima facie
correct upon these questions in the event of any dispute
between the claimant (or his legal representative) and the
Department concerning these questions.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be

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available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
(Source: P.A. 87-205.)
Section 25. The Retailers' Occupation Tax Act is amended by
changing Sections 3 and 6 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,

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from sales of tangible personal property, and from services
furnished, by him during such preceding calendar month or
quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during the
preceding calendar month or quarter and upon the basis of
which the tax is imposed;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,

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2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before

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the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements

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of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing

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distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other

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State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a

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dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business

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which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle retailer or trailer retailer for the
purpose of resale or (ii) a retailer of aircraft, watercraft,
motor vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 2-5 of this
Act, then that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that

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transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of

SB1732 Engrossed - 83 - LRB099 10341 HLH 30568 b
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later

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than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the

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retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property

SB1732 Engrossed - 86 - LRB099 10341 HLH 30568 b
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by

SB1732 Engrossed - 87 - LRB099 10341 HLH 30568 b
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is

SB1732 Engrossed - 88 - LRB099 10341 HLH 30568 b
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which

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such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of

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the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.

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The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to the
effective date of this amendatory Act of 1985, each payment
shall be in an amount not less than 22.5% of the taxpayer's
actual liability under Section 2d. If the month during which
such tax liability is incurred begins on or after January 1,
1986, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 27.5% of the
taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's

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liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for

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the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax

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Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax on sales of
food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food which has been prepared for immediate

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consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the

SB1732 Engrossed - 96 - LRB099 10341 HLH 30568 b
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act (CAA) Permit Fund under this Act
and the Use Tax Act shall not exceed $2,000,000 in any fiscal
year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,

SB1732 Engrossed - 97 - LRB099 10341 HLH 30568 b
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for

SB1732 Engrossed - 98 - LRB099 10341 HLH 30568 b
fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of

SB1732 Engrossed - 99 - LRB099 10341 HLH 30568 b
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to

SB1732 Engrossed - 100 - LRB099 10341 HLH 30568 b
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000

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1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000

SB1732 Engrossed - 102 - LRB099 10341 HLH 30568 b
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,

SB1732 Engrossed - 103 - LRB099 10341 HLH 30568 b
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Beginning on July 1, 2015, subject to payment of amounts
into the Capital Projects Fund, the Clean Air Act (CAA) Permit
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, the Department
shall each month deposit into the Sales and Excise Tax Refund
Fund 0.18% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate on the selling price of
tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year

SB1732 Engrossed - 104 - LRB099 10341 HLH 30568 b
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation

SB1732 Engrossed - 105 - LRB099 10341 HLH 30568 b
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional

SB1732 Engrossed - 106 - LRB099 10341 HLH 30568 b
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable
for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an

SB1732 Engrossed - 107 - LRB099 10341 HLH 30568 b
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section

SB1732 Engrossed - 108 - LRB099 10341 HLH 30568 b
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the

SB1732 Engrossed - 109 - LRB099 10341 HLH 30568 b
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
98-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
(35 ILCS 120/6) (from Ch. 120, par. 445)
Sec. 6. Credit memorandum or refund. If it appears, after
claim therefor filed with the Department, that an amount of tax
or penalty or interest has been paid which was not due under
this Act, whether as the result of a mistake of fact or an
error of law, except as hereinafter provided, then the
Department shall issue a credit memorandum or refund to the
person who made the erroneous payment or, if that person died
or became a person under legal disability, to his or her legal
representative, as such. For purposes of this Section, the tax
is deemed to be erroneously paid by a retailer when the
manufacturer of a motor vehicle sold by the retailer accepts
the return of that automobile and refunds to the purchaser the
selling price of that vehicle as provided in the New Vehicle
Buyer Protection Act. When a motor vehicle is returned for a
refund of the purchase price under the New Vehicle Buyer

SB1732 Engrossed - 110 - LRB099 10341 HLH 30568 b
Protection Act, the Department shall issue a credit memorandum
or a refund for the amount of tax paid by the retailer under
this Act attributable to the initial sale of that vehicle.
Claims submitted by the retailer are subject to the same
restrictions and procedures provided for in this Act. If it is
determined that the Department should issue a credit memorandum
or refund, the Department may first apply the amount thereof
against any tax or penalty or interest due or to become due
under this Act or under the Use Tax Act, the Service Occupation
Tax Act, the Service Use Tax Act, any local occupation or use
tax administered by the Department, Section 4 of the Water
Commission Act of 1985, subsections (b), (c) and (d) of Section
5.01 of the Local Mass Transit District Act, or subsections
(e), (f) and (g) of Section 4.03 of the Regional Transportation
Authority Act, from the person who made the erroneous payment.
If no tax or penalty or interest is due and no proceeding is
pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Act, the Use Tax Act, the Service Occupation
Tax Act, the Service Use Tax Act, any local occupation or use
tax administered by the Department, Section 4 of the Water
Commission Act of 1985, subsections (b), (c) and (d) of Section

SB1732 Engrossed - 111 - LRB099 10341 HLH 30568 b
5.01 of the Local Mass Transit District Act, or subsections
(e), (f) and (g) of Section 4.03 of the Regional Transportation
Authority Act, and the amount thereof applied by the Department
against any tax or penalty or interest due or to become due
under this Act or under the Use Tax Act, the Service Occupation
Tax Act, the Service Use Tax Act, any local occupation or use
tax administered by the Department, Section 4 of the Water
Commission Act of 1985, subsections (b), (c) and (d) of Section
5.01 of the Local Mass Transit District Act, or subsections
(e), (f) and (g) of Section 4.03 of the Regional Transportation
Authority Act, from such assignee. However, as to any claim for
credit or refund filed with the Department on and after each
January 1 and July 1 no amount of tax or penalty or interest
erroneously paid (either in total or partial liquidation of a
tax or penalty or amount of interest under this Act) more than
3 years prior to such January 1 and July 1, respectively, shall
be credited or refunded, except that if both the Department and
the taxpayer have agreed to an extension of time to issue a
notice of tax liability as provided in Section 4 of this Act,
such claim may be filed at any time prior to the expiration of
the period agreed upon.
No claim may be allowed for any amount paid to the
Department, whether paid voluntarily or involuntarily, if paid
in total or partial liquidation of an assessment which had
become final before the claim for credit or refund to recover
the amount so paid is filed with the Department, or if paid in

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total or partial liquidation of a judgment or order of court.
No credit may be allowed or refund made for any amount paid by
or collected from any claimant unless it appears (a) that the
claimant bore the burden of such amount and has not been
relieved thereof nor reimbursed therefor and has not shifted
such burden directly or indirectly through inclusion of such
amount in the price of the tangible personal property sold by
him or her or in any manner whatsoever; and that no
understanding or agreement, written or oral, exists whereby he
or she or his or her legal representative may be relieved of
the burden of such amount, be reimbursed therefor or may shift
the burden thereof; or (b) that he or she or his or her legal
representative has repaid unconditionally such amount to his or
her vendee (1) who bore the burden thereof and has not shifted
such burden directly or indirectly, in any manner whatsoever;
(2) who, if he or she has shifted such burden, has repaid
unconditionally such amount to his own vendee; and (3) who is
not entitled to receive any reimbursement therefor from any
other source than from his or her vendor, nor to be relieved of
such burden in any manner whatsoever. No credit may be allowed
or refund made for any amount paid by or collected from any
claimant unless it appears that the claimant has
unconditionally repaid, to the purchaser, any amount collected
from the purchaser and retained by the claimant with respect to
the same transaction under the Use Tax Act.
Any credit or refund that is allowed under this Section

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shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
If a retailer who has failed to pay retailers' occupation
tax on gross receipts from retail sales is required by the
Department to pay such tax, such retailer, without filing any
formal claim with the Department, shall be allowed to take
credit against such retailers' occupation tax liability to the
extent, if any, to which such retailer has paid an amount
equivalent to retailers' occupation tax or has paid use tax in
error to his or her vendor or vendors of the same tangible
personal property which such retailer bought for resale and did
not first use before selling it, and no penalty or interest
shall be charged to such retailer on the amount of such credit.
However, when such credit is allowed to the retailer by the
Department, the vendor is precluded from refunding any of that
tax to the retailer and filing a claim for credit or refund

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with respect thereto with the Department. The provisions of
this amendatory Act shall be applied retroactively, regardless
of the date of the transaction.
(Source: P.A. 91-901, eff. 1-1-01.)
Section 30. The Cigarette Machine Operators' Occupation
Tax Act is amended by changing Section 1-55 as follows:
(35 ILCS 128/1-55)
Sec. 1-55. Claims; credit memorandum or refunds. If it
appears, after claim is filed with the Department, that an
amount of tax or penalty has been paid which was not due under
this Act, whether as the result of a mistake of fact or an
error of law, except as hereinafter provided, then the
Department shall issue a credit memorandum or refund to the
person who made the erroneous payment or, if that person has
died or become a person under legal disability, to his or her
legal representative.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty due
under this Act, the Cigarette Tax Act, the Cigarette Use Tax
Act, or the Tobacco Products Act of 1995 from the person
entitled to that credit or refund. For this purpose, if
proceedings are pending to determine whether or not any tax or
penalty is due under this Act or under the Cigarette Tax Act,

SB1732 Engrossed - 115 - LRB099 10341 HLH 30568 b
Cigarette Use Tax Act, or the Tobacco Products Act of 1995 from
the person, the Department may withhold issuance of the credit
or refund pending the final disposition of such proceedings and
may apply such credit or refund against any amount found to be
due to the Department under this Act, the Cigarette Tax Act,
the Cigarette Use Tax Act, or the Tobacco Products Act of 1995
as a result of such proceedings. The balance, if any, of the
credit or refund shall be issued to the person entitled
thereto.
If no tax or penalty is due and no proceeding is pending to
determine whether such taxpayer is indebted to the Department
for the payment of a tax or penalty, the credit memorandum or
refund shall be issued to the claimant; or (in the case of a
credit memorandum) the credit memorandum may be assigned and
set over by the lawful holder thereof, subject to reasonable
rules of the Department, to any other person who is subject to
this Act, the Cigarette Tax Act, the Cigarette Use Tax Act, or
the Tobacco Products Act of 1995, and the amount thereof shall
be applied by the Department against any tax or penalty due or
to become due under this Act, the Cigarette Tax Act, the
Cigarette Use Tax Act, or the Tobacco Products Act of 1995 from
such assignee.
As to any claim filed hereunder with the Department on and
after each January 1 and July 1, no amount of tax or penalty
erroneously paid (either in total or partial liquidation of a
tax or penalty under this Act) more than 3 years prior to such

SB1732 Engrossed - 116 - LRB099 10341 HLH 30568 b
January 1 and July 1, respectively, shall be credited or
refunded, except that, if both the Department and the taxpayer
have agreed to an extension of time to issue a notice of tax
liability under this Act, the claim may be filed at any time
prior to the expiration of the period agreed upon.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner set forth in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund as may be appropriations
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
The provisions of Sections 6a, 6b, and 6c of the Retailers'
Occupation Tax Act which are not inconsistent with this Act
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
(Source: P.A. 97-688, eff. 6-14-12.)
Section 35. The Cigarette Tax Act is amended by changing

SB1732 Engrossed - 117 - LRB099 10341 HLH 30568 b
Section 9d as follows:
(35 ILCS 130/9d) (from Ch. 120, par. 453.9d)
Sec. 9d. If it appears, after claim therefor filed with the
Department, that an amount of tax or penalty has been paid
which was not due under this Act, whether as the result of a
mistake of fact or an error of law, except as hereinafter
provided, then the Department shall issue a credit memorandum
or refund to the person who made the erroneous payment or, if
that person has died or become a person under legal disability,
to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty due
under this Act or under the Cigarette Use Tax Act from the
person entitled to such credit or refund. For this purpose, if
proceedings are pending to determine whether or not any tax or
penalty is due under this Act or under the Cigarette Use Tax
Act from such person, the Department may withhold issuance of
the credit or refund pending the final disposition of such
proceedings and may apply such credit or refund against any
amount found to be due to the Department under this Act or
under the Cigarette Use Tax Act as a result of such
proceedings. The balance, if any, of the credit or refund shall
be issued to the person entitled thereto.
If no tax or penalty is due and no proceeding is pending to

SB1732 Engrossed - 118 - LRB099 10341 HLH 30568 b
determine whether such taxpayer is indebted to the Department
for tax or penalty, the credit memorandum or refund shall be
issued to the claimant; or (in the case of a credit memorandum)
the credit memorandum may be assigned and set over by the
lawful holder thereof, subject to reasonable rules of the
Department, to any other person who is subject to this Act or
the Cigarette Use Tax Act, and the amount thereof shall be
applied by the Department against any tax or penalty due or to
become due under this Act or under the Cigarette Use Tax Act
from such assignee.
As to any claim filed hereunder with the Department on and
after each January 1 and July 1, no amount of tax or penalty
erroneously paid (either in total or partial liquidation of a
tax or penalty under this Act) more than 3 years prior to such
January 1 and July 1, respectively, shall be credited or
refunded, except that if both the Department and the taxpayer
have agreed to an extension of time to issue a notice of tax
liability under this Act, the claim may be filed at any time
prior to the expiration of the period agreed upon.
If the Department approves a claim for stamps affixed to a
product returned to a manufacturer or for replacement of
stamps, the credit memorandum shall not exceed the face value
of stamps originally affixed, and replacement stamps shall be
issued only in an amount equal to the value of the stamps
previously affixed. Higher denomination stamps shall not be
issued as replacements for lower value stamps. Distributors

SB1732 Engrossed - 119 - LRB099 10341 HLH 30568 b
must prove the face value of the stamps which have been
destroyed or returned to manufacturers when filing claims.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner set forth in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
If the Department approves a claim for the physical
replacement of cigarette tax stamps, the Department (subject to
the same limitations as those provided for hereinbefore in this
Section) may issue an assignable credit memorandum or refund to
the claimant or to the claimant's legal representative.
The provisions of Sections 6a, 6b and 6c of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
(Source: P.A. 90-491, eff. 1-1-98.)

SB1732 Engrossed - 120 - LRB099 10341 HLH 30568 b
Section 40. The Cigarette Use Tax Act is amended by
changing Section 14a as follows:
(35 ILCS 135/14a) (from Ch. 120, par. 453.44a)
Sec. 14a. If it appears, after claim therefor filed with
the Department, that an amount of tax or penalty has been paid
which was not due under this Act, whether as the result of a
mistake of fact or an error of law, except as hereinafter
provided, then the Department shall issue a credit memorandum
or refund to the person who made the erroneous payment or, if
that person has died or become a person under legal disability,
to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty due
under this Act or under the Cigarette Tax Act from the person
entitled to such credit or refund. For this purpose, if
proceedings are pending to determine whether or not any tax or
penalty is due under this Act or under the Cigarette Tax Act
from such person, the Department may withhold issuance of the
credit or refund pending the final disposition of such
proceedings and may apply such credit or refund against any
amount found to be due to the Department under this Act or
under the Cigarette Tax Act as a result of such proceedings.
The balance, if any, of the credit or refund shall be issued to

SB1732 Engrossed - 121 - LRB099 10341 HLH 30568 b
the person entitled thereto.
If no tax or penalty is due and no proceeding is pending to
determine whether such taxpayer is indebted to the Department
for tax or penalty, the credit memorandum or refund shall be
issued to the claimant; or (in the case of a credit memorandum)
may be assigned and set over by the lawful holder thereof,
subject to reasonable rules of the Department, to any other
person who is subject to this Act or the Cigarette Tax Act, and
the amount thereof shall be applied by the Department against
any tax or penalty due or to become due under this Act or under
the Cigarette Tax Act from such assignee.
As to any claim filed hereunder with the Department on and
after each January 1 and July 1, no amount of tax or penalty
erroneously paid (either in total or partial liquidation of a
tax or penalty under this Act) more than 3 years prior to such
January 1 and July 1, respectively, shall be credited or
refunded, except that if both the Department and the taxpayer
have agreed to an extension of time to issue a notice of tax
liability under this Act, the claim may be filed at any time
prior to the expiration of the period agreed upon.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation

SB1732 Engrossed - 122 - LRB099 10341 HLH 30568 b
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
If the Department approves a claim for the physical
replacement of cigarette tax stamps, the Department (subject to
the same limitations as those provided for hereinbefore in this
Section) may issue an assignable credit memorandum or refund to
the claimant or to the claimant's legal representative.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner set forth in the
Uniform Penalty and Interest Act.
The provisions of Sections 6a, 6b and 6c of the "Retailers'
Occupation Tax Act", approved June 28, 1933, as amended, in
effect on the effective date of this amendatory Act, as
subsequently amended, which are not inconsistent with this Act,
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 45. The Coin-Operated Amusement Device and
Redemption Machine Tax Act is amended by changing Section 2 as
follows:
(35 ILCS 510/2) (from Ch. 120, par. 481b.2)

SB1732 Engrossed - 123 - LRB099 10341 HLH 30568 b
Sec. 2. (a) Any person, firm, limited liability company, or
corporation which displays any device described in Section 1,
to be played or operated by the public at any place owned or
leased by any such person, firm, limited liability company, or
corporation, shall before he displays such device, file in the
Office of the Department of Revenue a form containing
information regarding such device, setting forth his name and
address, with a brief description of the device to be displayed
and the premises where such device will be located, together
with such other relevant data as the Department of Revenue may
require. Such form shall be accompanied by the required
privilege tax for each device. Such privilege tax shall be paid
to the Department of Revenue of the State of Illinois and all
monies received by the Department of Revenue under this Act
shall be paid into the General Revenue Fund in the State
Treasury. The Department of Revenue shall supply and deliver to
the person, firm, limited liability company, or corporation
which displays any device described in Section 1, charges
prepaid and without additional cost, one privilege tax decal
for each such device on which the tax has been paid, stating
the year for which issued. Such privilege tax decal shall
thereupon be securely affixed to such device.
(b) If an amount of tax, penalty, or interest has been paid
in error to the Department, the taxpayer may file a claim for
credit or refund with the Department. If it is determined that
the Department must issue a credit or refund under this Act,

SB1732 Engrossed - 124 - LRB099 10341 HLH 30568 b
the Department may first apply the amount of the credit or
refund due against any amount of tax, penalty, or interest due
under this Act from the taxpayer entitled to the credit or
refund. If proceedings are pending to determine if any tax,
penalty, or interest is due under this Act from the taxpayer,
the Department may withhold issuance of the credit or refund
pending the final disposition of those proceedings and may
apply that credit or refund against any amount determined to be
due to the Department as a result of those proceedings. The
balance, if any, of the credit or refund shall be paid to the
taxpayer.
If no tax, penalty, or interest is due and no proceedings
are pending to determine whether the taxpayer is indebted to
the Department for tax, penalty, or interest, the credit
memorandum or refund shall be issued to the taxpayer; or, the
credit memorandum may be assigned by the taxpayer, subject to
reasonable rules of the Department, to any other person who is
subject to this Act, and the amount of the credit memorandum by
the Department against any tax, penalty, or interest due or to
become due under this Act from the assignee.
For any claim for credit or refund filed with the
Department on or after each July 1, no amount erroneously paid
more than 3 years before that July 1, shall be credited or
refunded.
A claim for credit or refund shall be filed on a form
provided by the Department. As soon as practicable after any

SB1732 Engrossed - 125 - LRB099 10341 HLH 30568 b
claim for credit or refund is filed, the Department shall
determine the amount of credit or refund to which the claimant
is entitled and shall notify the claimant of that
determination.
A claim for credit or refund shall be filed with the
Department on the date it is received by the Department. Upon
receipt of any claim for credit or refund filed under this
Section, an officer or employee of the Department, authorized
by the Director of Revenue to acknowledge receipt of such
claims on behalf of the Department, shall deliver or mail to
the claimant or his duly authorized agent, a written receipt,
acknowledging that the claim has been filed with the
Department, describing the claim in sufficient detail to
identify it, and stating the date on which the claim was
received by the Department. The written receipt shall be prima
facie evidence that the Department received the claim described
in the receipt and shall be prima facie evidence of the date
when such claim was received by the Department. In the absence
of a written receipt, the records of the Department as to
whether a claim was received, or when the claim was received by
the Department, shall be deemed to be prima facie correct in
the event of any dispute between the claimant, or his legal
representative, and the Department on these issues.
Any credit or refund that is allowed under this Article
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.

SB1732 Engrossed - 126 - LRB099 10341 HLH 30568 b
If the Department determines that the claimant is entitled
to a refund, the refund shall be made only from the Sales and
Excise Tax Refund Fund an appropriation to the Department for
that purpose. If the amount available appropriated is
insufficient to pay claimants electing to receive a cash
refund, the Department by rule or regulation shall first
provide for the payment of refunds in hardship cases as defined
by the Department.
(Source: P.A. 93-32, eff. 7-1-03.)
Section 50. The Messages Tax Act is amended by changing
Section 6 as follows:
(35 ILCS 610/6) (from Ch. 120, par. 467.6)
Sec. 6. If it appears, after claim therefor filed with the
Department, that an amount of tax or penalty or interest has
been paid which was not due under this Act, whether as the
result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous
payment or, if that person has died or become a person under
legal disability, to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty or
interest due hereunder from the person entitled to such credit

SB1732 Engrossed - 127 - LRB099 10341 HLH 30568 b
or refund. For this purpose, if proceedings are pending to
determine whether or not any tax or penalty or interest is due
under this Act from such person, the Department may withhold
issuance of the credit or refund pending the final disposition
of such proceedings and may apply such credit or refund against
any amount found to be due to the Department as a result of
such proceedings. The balance, if any, of the credit or refund
shall be issued to the person entitled thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Act, and the amount thereof shall be applied by
the Department against any tax or penalty or interest due or to
become due under this Act from such assignee.
As to any claim for credit or refund filed with the
Department on or after each January 1 and July 1, no amounts
erroneously paid more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded, except
that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability under this
Act, the claim may be filed at any time prior to the expiration
of the period agreed upon.

SB1732 Engrossed - 128 - LRB099 10341 HLH 30568 b
Claims for credit or refund shall be filed upon forms
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
examine the same and determine the amount of credit or refund
to which the claimant is entitled and shall notify the claimant
of such determination, which amount shall be prima facie
correct.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner specified in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 55. The Gas Revenue Tax Act is amended by changing
Section 6 as follows:
(35 ILCS 615/6) (from Ch. 120, par. 467.21)

SB1732 Engrossed - 129 - LRB099 10341 HLH 30568 b
Sec. 6. If it appears, after claim therefor filed with the
Department, that an amount of tax or penalty or interest has
been paid which was not due under this Act, whether as the
result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous
payment or, if that person has died or become a person under
legal disability, to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty or
interest due hereunder from the person entitled to such credit
or refund. For this purpose, if proceedings are pending to
determine whether or not any tax or penalty or interest is due
under this Act from such person, the Department may withhold
issuance of the credit or refund pending the final disposition
of such proceedings and may apply such credit or refund against
any amount found to be due to the Department as a result of
such proceedings. The balance, if any, of the credit or refund
shall be issued to the person entitled thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to

SB1732 Engrossed - 130 - LRB099 10341 HLH 30568 b
reasonable rules of the Department, to any other person who is
subject to this Act, and the amount thereof shall be applied by
the Department against any tax or penalty or interest due or to
become due under this Act from such assignee.
As to any claim for credit or refund filed with the
Department on or after each January 1 and July 1, no amounts
erroneously paid more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded, except
that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability under this
Act, the claim may be filed at any time prior to the expiration
of the period agreed upon.
Claims for credit or refund shall be filed upon forms
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
examine the same and determine the amount of credit or refund
to which the claimant is entitled and shall notify the claimant
of such determination, which amount shall be prima facie
correct.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner specified in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the

SB1732 Engrossed - 131 - LRB099 10341 HLH 30568 b
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 60. The Public Utilities Revenue Act is amended by
changing Section 6 as follows:
(35 ILCS 620/6) (from Ch. 120, par. 473)
Sec. 6. If it appears, after claim therefor filed with the
Department, that an amount of tax or penalty or interest has
been paid which was not due under this Act, whether as the
result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous
payment or, if that person has died or become a person under
legal disability, to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty or
interest due hereunder from the person entitled to such credit
or refund. Any credit memorandum issued under the Electricity
Excise Tax Law may be applied against any liability incurred

SB1732 Engrossed - 132 - LRB099 10341 HLH 30568 b
under the tax previously imposed by Section 2 of this Act. For
this purpose, if proceedings are pending to determine whether
or not any tax or penalty or interest is due under this Act
from such person, the Department may withhold issuance of the
credit or refund pending the final disposition of such
proceedings and may apply such credit or refund against any
amount found to be due to the Department as a result of such
proceedings. The balance, if any, of the credit or refund shall
be issued to the person entitled thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Act, and the amount thereof shall be applied by
the Department against any tax or penalty or interest due or to
become due under this Act from such assignee.
As to any claim for credit or refund filed with the
Department on or after each January 1 and July 1, no amounts
erroneously paid more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded, except
that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability under this
Act, the claim may be filed at any time prior to the expiration

SB1732 Engrossed - 133 - LRB099 10341 HLH 30568 b
of the period agreed upon.
Claims for credit or refund shall be filed upon forms
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
examine the same and determine the amount of credit or refund
to which the claimant is entitled and shall notify the claimant
of such determination, which amount shall be prima facie
correct.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner specified in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
(Source: P.A. 90-491, eff. 1-1-98; 90-624, eff. 7-10-98.)
Section 65. The Water Company Invested Capital Tax Act is
amended by changing Section 6 as follows:

SB1732 Engrossed - 134 - LRB099 10341 HLH 30568 b
(35 ILCS 625/6) (from Ch. 120, par. 1416)
Sec. 6. If it appears, after claim therefor filed with the
Department, that an amount of tax or penalty or interest has
been paid which was not due under this Act, whether as the
result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous
payment or, if that person has died or become incompetent, to
his legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Act, the Department may first apply
the amount thereof against any amount of tax or penalty or
interest due hereunder from the person entitled to such credit
or refund. For this purpose, if proceedings are pending to
determine whether or not any tax or penalty or interest is due
under this Act from such person, the Department may withhold
issuance of the credit or refund pending the final disposition
of such proceedings and may apply such credit or refund against
any amount found to be due to the Department as a result of
such proceedings. The balance, if any, of the credit or refund
shall be issued to the person entitled thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be

SB1732 Engrossed - 135 - LRB099 10341 HLH 30568 b
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Act, and the amount thereof shall be applied by
the Department against any tax or penalty or interest due or to
become due under this Act from such assignee.
As to any claim for credit or refund filed with the
Department on or after each January 1 and July 1, no amounts
erroneously paid more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded, except
that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability under this
Act, the claim may be filed at any time prior to the expiration
of the period agreed upon.
Claims for credit or refund shall be filed upon forms
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
examine the same and determine the amount of credit or refund
to which the claimant is entitled and shall notify the claimant
of such determination, which amount shall be prima facie
correct.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be

SB1732 Engrossed - 136 - LRB099 10341 HLH 30568 b
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as
hardship cases.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 70. The Telecommunications Excise Tax Act is
amended by changing Section 10 as follows:
(35 ILCS 630/10) (from Ch. 120, par. 2010)
Sec. 10. If it shall appear that an amount of tax or
penalty or interest has been paid in error hereunder to the
Department by a taxpayer, as distinguished from the retailer,
whether such amount be paid through a mistake of fact or an
error of law, such taxpayer may file a claim for credit or
refund with the Department. If it shall appear that an amount
of tax or penalty or interest has been paid in error to the
Department hereunder by a retailer who is required or
authorized to collect and remit the tax imposed by this
Article, whether such amount be paid through a mistake of fact
or an error of law, such retailer may file a claim for credit
or refund with the Department, provided that no credit or
refund shall be allowed for any amount paid by any such

SB1732 Engrossed - 137 - LRB099 10341 HLH 30568 b
retailer unless it shall appear that he bore the burden of such
amount and did not shift the burden thereof to anyone else, or
unless it shall appear that he or she or his or her legal
representative has unconditionally repaid such amount to his
customer (1) who bore the burden thereof and has not shifted
such burden directly or indirectly in any manner whatsoever; or
(2) who, if he or she shifted such burden, has repaid
unconditionally such amount to his or her own customer; and (3)
who is not entitled to receive any reimbursement therefor from
any other source than from his retailer, nor to be relieved of
such burden in any other manner whatsoever.
If it is determined that the Department should issue a
credit or refund under this Article, the Department may first
apply the amount thereof against any amount of tax or penalty
or interest due hereunder from the person entitled to such
credit or refund. For this purpose, if proceedings are pending
to determine whether or not any tax or penalty or interest is
due under this Article from such person, the Department may
withhold issuance of the credit or refund pending the final
disposition of such proceedings and may apply such credit or
refund against any amount found to be due to the Department as
a result of such proceedings. The balance, if any, of the
credit or refund shall be issued to the person entitled
thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such person is indebted to the

SB1732 Engrossed - 138 - LRB099 10341 HLH 30568 b
Department for tax or penalty or interest, the credit
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Article, and the amount thereof shall be
applied by the Department against any tax or penalty or
interest due or to become due under this Article from such
assignee.
As to any claim for credit or refund filed with the
Department on or after each January 1 and July 1, no amounts
erroneously paid more than three years prior to such January 1
and July 1, respectively, shall be credited or refunded, except
that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability under this
Act, the claim may be filed at any time prior to the expiration
of the period agreed upon.
Claims for credit or refund shall be filed upon forms
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
examine the same and determine the amount of credit or refund
to which the claimant is entitled and shall notify the claimant
of such determination, which amount shall be prima facie
correct.
A claim for credit or refund shall be considered to have
been filed with the Department on the date upon which it is

SB1732 Engrossed - 139 - LRB099 10341 HLH 30568 b
received by the Department. Upon receipt of any claim for
credit or refund filed under this Article, any officer or
employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on
behalf of the Department, shall execute on behalf of the
Department, and shall deliver or mail to the claimant or his
duly authorized agent, a written receipt, acknowledging that
the claim has been filed with the Department, describing the
claim in sufficient detail to identify it and stating the date
upon which the claim was received by the Department. Such
written receipt shall be prima facie evidence that the
Department received the claim described in such receipt and
shall be prima facie evidence of the date when such claim was
received by the Department. In the absence of such a written
receipt, the records of the Department as to when the claim was
received by the Department, or as to whether or not the claim
was received at all by the Department, shall be deemed to be
prima facie correct upon these questions in the event of any
dispute between the claimant (or his or her legal
representative) and the Department concerning these questions.
Any credit or refund that is allowed under this Article
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be

SB1732 Engrossed - 140 - LRB099 10341 HLH 30568 b
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department by rule or
regulation shall provide for the payment of refunds in hardship
cases and shall define what types of cases qualify as hardship
cases.
If a retailer who has failed to pay tax on gross charges
for telecommunications is required by the Department to pay
such tax, such retailer, without filing any formal claim with
the Department, shall be allowed to take credit against such
tax liability to the extent, if any, to which such retailer has
paid the tax to its vendor of the telecommunications which such
retailer purchased and used for resale, and no penalty or
interest shall be charged to such retailer on the amount of
such credit. However, when such credit is allowed to the
retailer by the Department, the vendor is precluded from
refunding any of the tax to the retailer and filing a claim for
credit or refund with respect thereto with the Department. The
provisions of this Section added by this amendatory Act of 1988
shall be applied retroactively, regardless of the date of the
transaction.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 75. The Liquor Control Act of 1934 is amended by
changing Section 8-3 as follows:

SB1732 Engrossed - 141 - LRB099 10341 HLH 30568 b
(235 ILCS 5/8-3) (from Ch. 43, par. 159a)
Sec. 8-3. If it appears, after claim therefor filed with
the Department, that an amount of tax or penalty or interest
has been paid which was not due under this Article, whether as
the result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous
payment or, if that person died or became a person under legal
disability, to his or her legal representative, as such.
If it is determined that the Department should issue a
credit or refund under this Article, the Department may first
apply the amount thereof against any amount of tax or penalty
or interest due hereunder from the person entitled to such
credit or refund. For this purpose, if proceedings are pending
to determine whether or not any tax or penalty or interest is
due under this Article from such person, the Department may
withhold issuance of the credit or refund pending the final
disposition of such proceedings and may apply such credit or
refund against any amount found to be due to the Department as
a result of such proceedings. The balance, if any, of the
credit or refund shall be issued to the person entitled
thereto.
If no tax or penalty or interest is due and no proceeding
is pending to determine whether such taxpayer is indebted to
the Department for tax or penalty or interest the credit

SB1732 Engrossed - 142 - LRB099 10341 HLH 30568 b
memorandum or refund shall be issued to the claimant; or (in
the case of a credit memorandum) the credit memorandum may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is
subject to this Article, and the amount thereof shall be
applied by the Department against any tax or penalty or
interest due or to become due under this Article from such
assignee.
As to any claim filed hereunder with the Department on and
after each January 1 and July 1, no amount of tax or penalty or
interest, erroneously paid (either in total or partial
liquidation of a tax or penalty or interest under this Article)
more than 3 years prior to such January 1 and July 1,
respectively, shall be credited or refunded.
Any credit or refund that is allowed under this Act shall
bear interest at the rate and in the manner specified in the
Uniform Penalty and Interest Act.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Sales and Excise Tax Refund Fund such appropriation as may be
available for that purpose. If it appears unlikely that the
amount available appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as

SB1732 Engrossed - 143 - LRB099 10341 HLH 30568 b
hardship cases.
(Source: P.A. 87-205.)
Section 99. Effective date. This Act takes effect on July
1, 2015.
SB1732 Engrossed - 144 - LRB099 10341 HLH 30568 b
INDEX
Statutes amended in order of appearance