Bill Text: IL SB2279 | 2021-2022 | 102nd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the engrossed bill with changes. Removes provisions from the bill that amend the Property Tax Code. Makes changes concerning statutes of limitations for issuing a notice of tax liability. Further amends the Illinois Income Tax Act. Provides that, when a taxpayer sells or transfers the major part of (i) the stock of goods which he is engaged in the business of selling, (ii) furniture or fixtures, (iii) machinery and equipment, or (iv) real property, then the taxpayer shall notify the Department of Revenue (currently, the Chicago office of the Department of Revenue) no more than 10 business days before (currently, after) the sale or transfer. Provides that payments of winnings from sports wagering conducted in accordance with the Sports Wagering Act are allocable to this State. In provisions concerning the Economic Development for a Growing Economy (EDGE) Tax Credit, provides that, if, during any taxable year, a taxpayer ceases operations at a project location that is the subject of an EDGE agreement with the intent to terminate operations in the State, then the taxpayer's State income tax liability shall be increased by the amount of any credit allowed prior to the date the taxpayer ceases operations. Adds provisions to the engrossed bill amending the Tobacco Products Tax Act of 1995. Provides that the definition of "electronic cigarette" does not include a device designed solely for use with cannabis or a device that contains a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act. Provides that the changes made by this amendatory Act apply on and after June 28, 2020. Amends the Local Government Revenue Recapture Act. Provides that a niece, nephew, great-niece, or great-nephew is considered a "family member" for purposes of the Act. Makes changes concerning circumstances under which a third party may access a municipality's or county's financial information. In provisions concerning third party aggregated data, provides that no aggregated data may be published that includes taxpayer information for 4 or fewer taxpayers. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2021-06-25 - Public Act . . . . . . . . . 102-0040 [SB2279 Detail]

Download: Illinois-2021-SB2279-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 Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-380 as follows:
(20 ILCS 2505/2505-380) (was 20 ILCS 2505/39b47)
Sec. 2505-380. Revocation of or refusal to issue or
reissue a certificate of registration, permit, or license.
(a) The Department has the power, after notice and an
opportunity for a hearing, to revoke a certificate of
registration, permit, or license issued by the Department if
the holder of the certificate of registration, permit, or
license fails to file a return, or to pay the tax, fee,
penalty, or interest shown in a filed return, or to pay any
final assessment of tax, fee, penalty, or interest, as
required by the tax or fee Act under which the certificate of
registration, permit, or license is required or any other tax
or fee Act administered by the Department.
(b) The Department may refuse to issue, reissue, or renew
a certificate of registration, permit, or license authorized
to be issued by the Department if a person who is named as the
owner, a partner, a corporate officer, or, in the case of a

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limited liability company, a manager or member, of the
applicant on the application for the certificate of
registration, permit or license, is or has been named as the
owner, a partner, a corporate officer, or in the case of a
limited liability company, a manager or member, on the
application for the certificate of registration, permit, or
license of a person that is in default for moneys due under the
tax or fee Act upon which the certificate of registration,
permit, or license is required or any other tax or fee Act
administered by the Department. For purposes of this Section
only, in determining whether a person is in default for moneys
due, the Department shall include only amounts established as
a final liability within the 23 20 years prior to the date of
the Department's notice of refusal to issue or reissue the
certificate of registration, permit, or license. For purposes
of this Section, "person" means any natural individual, firm,
partnership, association, joint stock company, joint
adventure, public or private corporation, limited liability
company, or a receiver, executor, trustee, guardian or other
representative appointed by order of any court.
(c) When revoking or refusing to issue or reissue a
certificate of registration, permit, or license issued by the
Department, the procedure for notice and hearing used shall be
the procedure provided under the Act pursuant to which the
certificate of registration, permit, or license was issued.
(Source: P.A. 98-496, eff. 1-1-14; 98-1055, eff. 1-1-16.)

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Section 10. The State Finance Act is amended by adding
Section 5.935 as follows:
(30 ILCS 105/5.935 new)
Sec. 5.935. The Property Tax Appeal Board Supplemental
Fund.
Section 15. The Illinois Income Tax Act is amended by
changing Section 905 as follows:
(35 ILCS 5/905) (from Ch. 120, par. 9-905)
Sec. 905. Limitations on Notices of Deficiency.
(a) In general. Except as otherwise provided in this Act:
(1) A notice of deficiency shall be issued not later
than 3 years after the date the return was filed, and
(2) No deficiency shall be assessed or collected with
respect to the year for which the return was filed unless
such notice is issued within such period.
(a-5) Notwithstanding any other provision of this Act to
the contrary, for any taxable year included in a claim for
credit or refund for which the statute of limitations for
issuing a notice of deficiency under this Act will expire less
than 12 months after the date a taxpayer files the claim for
credit or refund, the statute of limitations is automatically
extended for 12 months from the date it would have otherwise

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expired.
(b) Substantial omission of items.
(1) Omission of more than 25% of income. If the
taxpayer omits from base income an amount properly
includible therein which is in excess of 25% of the amount
of base income stated in the return, a notice of
deficiency may be issued not later than 6 years after the
return was filed. For purposes of this paragraph, there
shall not be taken into account any amount which is
omitted in the return if such amount is disclosed in the
return, or in a statement attached to the return, in a
manner adequate to apprise the Department of the nature
and the amount of such item.
(2) Reportable transactions. If a taxpayer fails to
include on any return or statement for any taxable year
any information with respect to a reportable transaction,
as required under Section 501(b) of this Act, a notice of
deficiency may be issued not later than 6 years after the
return is filed with respect to the taxable year in which
the taxpayer participated in the reportable transaction
and said deficiency is limited to the non-disclosed item.
(3) Withholding. If an employer omits from a return
required under Section 704A of this Act for any period
beginning on or after January 1, 2013, an amount required
to be withheld and to be reported on that return which is
in excess of 25% of the total amount of withholding

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required to be reported on that return, a notice of
deficiency may be issued not later than 6 years after the
return was filed.
(c) No return or fraudulent return. If no return is filed
or a false and fraudulent return is filed with intent to evade
the tax imposed by this Act, a notice of deficiency may be
issued at any time. For purposes of this subsection (c), any
taxpayer who is required to join in the filing of a return
filed under the provisions of subsection (e) of Section 502 of
this Act for a taxable year ending on or after December 31,
2013 and who is not included on that return and does not file
its own return for that taxable year shall be deemed to have
failed to file a return; provided that the amount of any
proposed assessment set forth in a notice of deficiency issued
under this subsection (c) shall be limited to the amount of any
increase in liability under this Act that should have reported
on the return required under the provisions of subsection (e)
of Section 502 of this Act for that taxable year resulting from
proper inclusion of that taxpayer on that return.
(d) Failure to report federal change. If a taxpayer fails
to notify the Department in any case where notification is
required by Section 304(c) or 506(b), or fails to report a
change or correction which is treated in the same manner as if
it were a deficiency for federal income tax purposes, a notice
of deficiency may be issued (i) at any time or (ii) on or after
August 13, 1999, at any time for the taxable year for which the

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notification is required or for any taxable year to which the
taxpayer may carry an Article 2 credit, or a Section 207 loss,
earned, incurred, or used in the year for which the
notification is required; provided, however, that the amount
of any proposed assessment set forth in the notice shall be
limited to the amount of any deficiency resulting under this
Act from the recomputation of the taxpayer's net income,
Article 2 credits, or Section 207 loss earned, incurred, or
used in the taxable year for which the notification is
required after giving effect to the item or items required to
be reported.
(e) Report of federal change.
(1) Before August 13, 1999, in any case where
notification of an alteration is given as required by
Section 506(b), a notice of deficiency may be issued at
any time within 2 years after the date such notification
is given, provided, however, that the amount of any
proposed assessment set forth in such notice shall be
limited to the amount of any deficiency resulting under
this Act from recomputation of the taxpayer's net income,
net loss, or Article 2 credits for the taxable year after
giving effect to the item or items reflected in the
reported alteration.
(2) On and after August 13, 1999, in any case where
notification of an alteration is given as required by
Section 506(b), a notice of deficiency may be issued at

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any time within 2 years after the date such notification
is given for the taxable year for which the notification
is given or for any taxable year to which the taxpayer may
carry an Article 2 credit, or a Section 207 loss, earned,
incurred, or used in the year for which the notification
is given, provided, however, that the amount of any
proposed assessment set forth in such notice shall be
limited to the amount of any deficiency resulting under
this Act from recomputation of the taxpayer's net income,
Article 2 credits, or Section 207 loss earned, incurred,
or used in the taxable year for which the notification is
given after giving effect to the item or items reflected
in the reported alteration.
(f) Extension by agreement. Where, before the expiration
of the time prescribed in this Section for the issuance of a
notice of deficiency, both the Department and the taxpayer
shall have consented in writing to its issuance after such
time, such notice may be issued at any time prior to the
expiration of the period agreed upon. In the case of a taxpayer
who is a partnership, Subchapter S corporation, or trust and
who enters into an agreement with the Department pursuant to
this subsection on or after January 1, 2003, a notice of
deficiency may be issued to the partners, shareholders, or
beneficiaries of the taxpayer at any time prior to the
expiration of the period agreed upon. Any proposed assessment
set forth in the notice, however, shall be limited to the

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amount of any deficiency resulting under this Act from
recomputation of items of income, deduction, credits, or other
amounts of the taxpayer that are taken into account by the
partner, shareholder, or beneficiary in computing its
liability under this Act. The period so agreed upon may be
extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
(g) Erroneous refunds. In any case in which there has been
an erroneous refund of tax payable under this Act, a notice of
deficiency may be issued at any time within 2 years from the
making of such refund, or within 5 years from the making of
such refund if it appears that any part of the refund was
induced by fraud or the misrepresentation of a material fact,
provided, however, that the amount of any proposed assessment
set forth in such notice shall be limited to the amount of such
erroneous refund.
Beginning July 1, 1993, in any case in which there has been
a refund of tax payable under this Act attributable to a net
loss carryback as provided for in Section 207, and that refund
is subsequently determined to be an erroneous refund due to a
reduction in the amount of the net loss which was originally
carried back, a notice of deficiency for the erroneous refund
amount may be issued at any time during the same time period in
which a notice of deficiency can be issued on the loss year
creating the carryback amount and subsequent erroneous refund.
The amount of any proposed assessment set forth in the notice

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shall be limited to the amount of such erroneous refund.
(h) Time return deemed filed. For purposes of this Section
a tax return filed before the last day prescribed by law
(including any extension thereof) shall be deemed to have been
filed on such last day.
(i) Request for prompt determination of liability. For
purposes of subsection (a)(1), in the case of a tax return
required under this Act in respect of a decedent, or by his
estate during the period of administration, or by a
corporation, the period referred to in such Subsection shall
be 18 months after a written request for prompt determination
of liability is filed with the Department (at such time and in
such form and manner as the Department shall by regulations
prescribe) by the executor, administrator, or other fiduciary
representing the estate of such decedent, or by such
corporation, but not more than 3 years after the date the
return was filed. This subsection shall not apply in the case
of a corporation unless:
(1) (A) such written request notifies the Department
that the corporation contemplates dissolution at or before
the expiration of such 18-month period, (B) the
dissolution is begun in good faith before the expiration
of such 18-month period, and (C) the dissolution is
completed;
(2) (A) such written request notifies the Department
that a dissolution has in good faith been begun, and (B)

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the dissolution is completed; or
(3) a dissolution has been completed at the time such
written request is made.
(j) Withholding tax. In the case of returns required under
Article 7 of this Act (with respect to any amounts withheld as
tax or any amounts required to have been withheld as tax) a
notice of deficiency shall be issued not later than 3 years
after the 15th day of the 4th month following the close of the
calendar year in which such withholding was required.
(k) Penalties for failure to make information reports. A
notice of deficiency for the penalties provided by Subsection
1405.1(c) of this Act may not be issued more than 3 years after
the due date of the reports with respect to which the penalties
are asserted.
(l) Penalty for failure to file withholding returns. A
notice of deficiency for penalties provided by Section 1004 of
this Act for taxpayer's failure to file withholding returns
may not be issued more than three years after the 15th day of
the 4th month following the close of the calendar year in which
the withholding giving rise to taxpayer's obligation to file
those returns occurred.
(m) Transferee liability. A notice of deficiency may be
issued to a transferee relative to a liability asserted under
Section 1405 during time periods defined as follows:
1) Initial Transferee. In the case of the liability of
an initial transferee, up to 2 years after the expiration

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of the period of limitation for assessment against the
transferor, except that if a court proceeding for review
of the assessment against the transferor has begun, then
up to 2 years after the return of the certified copy of the
judgment in the court proceeding.
2) Transferee of Transferee. In the case of the
liability of a transferee, up to 2 years after the
expiration of the period of limitation for assessment
against the preceding transferee, but not more than 3
years after the expiration of the period of limitation for
assessment against the initial transferor; except that if,
before the expiration of the period of limitation for the
assessment of the liability of the transferee, a court
proceeding for the collection of the tax or liability in
respect thereof has been begun against the initial
transferor or the last preceding transferee, as the case
may be, then the period of limitation for assessment of
the liability of the transferee shall expire 2 years after
the return of the certified copy of the judgment in the
court proceeding.
(n) Notice of decrease in net loss. On and after August 23,
2002, no notice of deficiency shall be issued as the result of
a decrease determined by the Department in the net loss
incurred by a taxpayer in any taxable year ending prior to
December 31, 2002 under Section 207 of this Act unless the
Department has notified the taxpayer of the proposed decrease

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within 3 years after the return reporting the loss was filed or
within one year after an amended return reporting an increase
in the loss was filed, provided that in the case of an amended
return, a decrease proposed by the Department more than 3
years after the original return was filed may not exceed the
increase claimed by the taxpayer on the original return.
(Source: P.A. 98-496, eff. 1-1-14.)
Section 20. The Use Tax Act is amended by changing Section
21 as follows:
(35 ILCS 105/21) (from Ch. 120, par. 439.21)
Sec. 21. As to any claim for credit or refund filed with
the Department on and after January 1 but on or before June 30
of any given year, 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 Act) more than 3 years
prior to such January 1 shall be credited or refunded, and as
to any such claim filed on and after July 1 but on or before
December 31 of any given year, 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 Act)
more than 3 years prior to such July 1 shall be credited or
refunded. Notwithstanding any other provision of this Act to
the contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a

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notice of tax liability under this Act will expire less than 12
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired. No
claim shall 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 total or
partial liquidation of a judgment or order of court.
(Source: P.A. 79-1366; 79-1365.)
Section 25. The Service Occupation Tax Act is amended by
changing Section 19 as follows:
(35 ILCS 115/19) (from Ch. 120, par. 439.119)
Sec. 19. As to any claim for credit or refund filed with
the Department on or 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 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 taxpayer have agreed to an
extension of time to issue a notice of tax liability as
provided in Section 4 of the Retailers' Occupation Tax Act,
such claim may be filed at any time prior to the expiration of

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the period agreed upon. Notwithstanding any other provision of
this Act to the contrary, for any period included in a claim
for credit or refund for which the statute of limitations for
issuing a notice of tax liability under this Act will expire
less than 12 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is
automatically extended for 12 months from the date it would
have otherwise expired. No claim shall 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 total or partial liquidation of a
judgment or order of court.
(Source: P.A. 90-562, eff. 12-16-97.)
Section 30. The Retailers' Occupation Tax Act is amended
by changing Sections 2a and 6 as follows:
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. It is unlawful for any person to engage in the
business of selling tangible personal property at retail in
this State without a certificate of registration from the
Department. Application for a certificate of registration
shall be made to the Department upon forms furnished by it.
Each such application shall be signed and verified and shall

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state: (1) the name and social security number of the
applicant; (2) the address of his principal place of business;
(3) 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 and the addresses of all other
places of business, if any (enumerating such addresses, if
any, in a separate list attached to and made a part of the
application), from which he engages in the business of selling
tangible personal property at retail in this State; (4) the
name and address of the person or persons who will be
responsible for filing returns and payment of taxes due under
this Act; (5) in the case of a publicly traded corporation, the
name and title of the Chief Financial Officer, Chief Operating
Officer, and any other officer or employee with responsibility
for preparing tax returns under this Act, and, in the case of
all other corporations, the name, title, and social security
number of each corporate officer; (6) in the case of a limited
liability company, the name, social security number, and FEIN
number of each manager and member; and (7) such other
information as the Department may reasonably require. The
application shall contain an acceptance of responsibility
signed by the person or persons who will be responsible for
filing returns and payment of the taxes due under this Act. If
the applicant will sell tangible personal property at retail
through vending machines, his application to register shall
indicate the number of vending machines to be so operated. If

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requested by the Department at any time, that person shall
verify the total number of vending machines he or she uses in
his or her business of selling tangible personal property at
retail.
The Department shall provide by rule for an expedited
business registration process for remote retailers required to
register and file under subsection (b) of Section 2 who use a
certified service provider to file their returns under this
Act. Such expedited registration process shall allow the
Department to register a taxpayer based upon the same
registration information required by the Streamlined Sales Tax
Governing Board for states participating in the Streamlined
Sales Tax Project.
The Department may deny a certificate of registration to
any applicant if a person who is named as the owner, a partner,
a manager or member of a limited liability company, or a
corporate officer of the applicant on the application for the
certificate of registration is or has been named as the owner,
a partner, a manager or member of a limited liability company,
or a corporate officer on the application for the certificate
of registration of another retailer that is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department. For purposes of this paragraph
only, in determining whether a person is in default for moneys
due, the Department shall include only amounts established as
a final liability within the 23 20 years prior to the date of

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the Department's notice of denial of a certificate of
registration.
The Department may require an applicant for a certificate
of registration hereunder to, at the time of filing such
application, furnish a bond from a surety company authorized
to do business in the State of Illinois, or an irrevocable bank
letter of credit or a bond signed by 2 personal sureties who
have filed, with the Department, sworn statements disclosing
net assets equal to at least 3 times the amount of the bond to
be required of such applicant, or a bond secured by an
assignment of a bank account or certificate of deposit, stocks
or bonds, conditioned upon the applicant paying to the State
of Illinois all moneys becoming due under this Act and under
any other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the
applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and

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whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the
amount of the bond or other security, taking into
consideration the amount of money expected to become due from
the applicant under this Act and under any other State tax law
or municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance, or resolution. The amount of security required
by the Department shall be such as, in its opinion, will
protect the State of Illinois against failure to pay the
amount which may become due from the applicant under this Act
and under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the applicant under this Act
will permit the applicant to engage in business without
registering separately under such other law, ordinance or
resolution, but the amount of the security required by the
Department shall not exceed three times the amount of the

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applicant's average monthly tax liability, or $50,000.00,
whichever amount is lower.
No certificate of registration under this Act shall be
issued by the Department until the applicant provides the
Department with satisfactory security, if required, as herein
provided for.
Upon receipt of the application for certificate of
registration in proper form, and upon approval by the
Department of the security furnished by the applicant, if
required, the Department shall issue to such applicant a
certificate of registration which shall permit the person to
whom it is issued to engage in the business of selling tangible
personal property at retail in this State. The certificate of
registration shall be conspicuously displayed at the place of
business which the person so registered states in his
application to be the principal place of business from which
he engages in the business of selling tangible personal
property at retail in this State.
No certificate of registration issued prior to July 1,
2017 to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration
issued on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after

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July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after
July 1, 2017, a certificate of registration shall
automatically be renewed, subject to revocation as provided by
this Act, for an additional one year from the date of its
expiration unless otherwise notified by the Department as
provided by this paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois
for delinquent returns or for moneys due under this Act or any
other State tax law or municipal or county ordinance
administered or enforced by the Department, the Department
shall, not less than 60 days before the expiration date of such
certificate of registration, give notice to the taxpayer to
whom the certificate was issued of the account period of the
delinquent returns, the amount of tax, penalty and interest
due and owing from the taxpayer, and that the certificate of
registration shall not be automatically renewed upon its

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expiration date unless the taxpayer, on or before the date of
expiration, has filed and paid the delinquent returns or paid
the defaulted amount in full. A taxpayer to whom such a notice
is issued shall be deemed an applicant for renewal. The
Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis
but desire and qualify to change to a quarterly or yearly
filing basis and will no longer be subject to renewal under
this Section, and for taxpayers who file returns on a yearly or
quarterly basis but who desire or are required to change to a
monthly filing basis and will be subject to renewal under this
Section.
The Department may in its discretion approve renewal by an
applicant who is in default if, at the time of application for
renewal, the applicant files all of the delinquent returns or
pays to the Department such percentage of the defaulted amount
as may be determined by the Department and agrees in writing to
waive all limitations upon the Department for collection of
the remaining defaulted amount to the Department over a period
not to exceed 5 years from the date of renewal of the
certificate; however, no renewal application submitted by an
applicant who is in default shall be approved if the
immediately preceding renewal by the applicant was conditioned
upon the installment payment agreement described in this
Section. The payment agreement herein provided for shall be in
addition to and not in lieu of the security that may be

SB2279 Engrossed - 22 - LRB102 16048 HLH 21420 b
required by this Section of a taxpayer who is no longer
considered a prior continuous compliance taxpayer. The
execution of the payment agreement as provided in this Act
shall not toll the accrual of interest at the statutory rate.
The Department may suspend a certificate of registration
if the Department finds that the person to whom the
certificate of registration has been issued knowingly sold
contraband cigarettes.
A certificate of registration issued under this Act more
than 5 years before January 1, 1990 (the effective date of
Public Act 86-383) shall expire and be subject to the renewal
provisions of this Section on the next anniversary of the date
of issuance of such certificate which occurs more than 6
months after January 1, 1990 (the effective date of Public Act
86-383). A certificate of registration issued less than 5
years before January 1, 1990 (the effective date of Public Act
86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State,
the Department shall furnish him with a sub-certificate of
registration for each such place of business, and the
applicant shall display the appropriate sub-certificate of
registration at each such place of business. All

SB2279 Engrossed - 23 - LRB102 16048 HLH 21420 b
sub-certificates of registration shall bear the same
registration number as that appearing upon the certificate of
registration to which such sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of
registration to a conspicuous part of such vending machine. If
a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of
vending machines he or she uses in his or her business of
selling tangible personal property at retail, he or she shall
notify the Department, on a form prescribed by the Department,
to request an additional sub-certificate or additional
sub-certificates of registration, as applicable. With each
such request, the applicant shall report the number of
sub-certificates of registration he or she is requesting as
well as the total number of vending machines from which he or
she makes retail sales.
Where the same person engages in 2 or more businesses of
selling tangible personal property at retail in this State,
which businesses are substantially different in character or
engaged in under different trade names or engaged in under

SB2279 Engrossed - 24 - LRB102 16048 HLH 21420 b
other substantially dissimilar circumstances (so that it is
more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered),
the Department may require or permit such person (subject to
the same requirements concerning the furnishing of security as
those that are provided for hereinbefore in this Section as to
each application for a certificate of registration) to apply
for and obtain a separate certificate of registration for each
such business or for any of such businesses, under a single
certificate of registration supplemented by related
sub-certificates of registration.
Any person who is registered under the Retailers'
Occupation Tax Act as of March 8, 1963, and who, during the
3-year period immediately prior to March 8, 1963, or during a
continuous 3-year period part of which passed immediately
before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is
determined by the Department not to have been either
delinquent or deficient in the payment of tax liability during
that period under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
registrant under this Act will permit the registrant to engage
in business without registering separately under such other
law, ordinance or resolution, shall be considered to be a
Prior Continuous Compliance taxpayer. Also any taxpayer who

SB2279 Engrossed - 25 - LRB102 16048 HLH 21420 b
has, as verified by the Department, faithfully and
continuously complied with the condition of his bond or other
security under the provisions of this Act for a period of 3
consecutive years shall be considered to be a Prior Continuous
Compliance taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt
from all requirements under this Act concerning the furnishing
of a bond or other security as a condition precedent to his
being authorized to engage in the business of selling tangible
personal property at retail in this State. This exemption
shall continue for each such taxpayer until such time as he may
be determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing of
a return which admits tax that is not paid to be due) to be
delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject
to all the financial responsibility requirements of this Act
and, as a condition of being allowed to continue to engage in
the business of selling tangible personal property at retail,

SB2279 Engrossed - 26 - LRB102 16048 HLH 21420 b
may be required to post bond or other acceptable security with
the Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance or resolution.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
With respect to security other than bonds (upon which the

SB2279 Engrossed - 27 - LRB102 16048 HLH 21420 b
Department may sue in the event of a forfeiture), if the
taxpayer fails to pay, when due, any amount whose payment such
security guarantees, the Department shall, after such
liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has
become final under the law, convert the security which that
taxpayer has furnished into money for the State, after first
giving the taxpayer at least 10 days' written notice, by
registered or certified mail, to pay the liability or forfeit
such security to the Department. If the security consists of
stocks or bonds or other securities which are listed on a
public exchange, the Department shall sell such securities
through such public exchange. If the security consists of an
irrevocable bank letter of credit, the Department shall
convert the security in the manner provided for in the Uniform
Commercial Code. If the security consists of a bank
certificate of deposit, the Department shall convert the
security into money by demanding and collecting the amount of
such bank certificate of deposit from the bank which issued
such certificate. If the security consists of a type of stocks
or other securities which are not listed on a public exchange,
the Department shall sell such security to the highest and
best bidder after giving at least 10 days' notice of the date,
time and place of the intended sale by publication in the
"State Official Newspaper". If the Department realizes more
than the amount of such liability from the security, plus the

SB2279 Engrossed - 28 - LRB102 16048 HLH 21420 b
expenses incurred by the Department in converting the security
into money, the Department shall pay such excess to the
taxpayer who furnished such security, and the balance shall be
paid into the State Treasury.
The Department shall discharge any surety and shall
release and return any security deposited, assigned, pledged
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such taxpayer becomes a Prior Continuous
Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax
liability, as determined by the Department, under this Act
and under every other State tax law or municipal or county
tax ordinance or resolution under which the certificate of
registration issued under this Act permits the registrant
to engage in business without registering separately under
such other law, ordinance or resolution. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible
after his final tax return has been filed; if the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its

SB2279 Engrossed - 29 - LRB102 16048 HLH 21420 b
reasons therefor.
(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
100-863, eff. 8-14-18; 101-31, eff. 6-28-19.)
(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
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

SB2279 Engrossed - 30 - LRB102 16048 HLH 21420 b
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 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

SB2279 Engrossed - 31 - LRB102 16048 HLH 21420 b
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.
Notwithstanding any other provision of this Act to the
contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a
notice of tax liability under this Act will expire less than 12
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired.
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

SB2279 Engrossed - 32 - LRB102 16048 HLH 21420 b
the amount so paid is filed with the Department, or if paid in
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

SB2279 Engrossed - 33 - LRB102 16048 HLH 21420 b
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.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from the
Aviation Fuel Sales Tax Refund Fund or from such appropriation
as may be available for that purpose, as appropriate. If it
appears unlikely that the amount available would permit
everyone having a claim allowed during the period covered by
such appropriation or from the Aviation Fuel Sales Tax Refund
Fund, as appropriate, 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.

SB2279 Engrossed - 34 - LRB102 16048 HLH 21420 b
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. 101-10, eff. 6-5-19.)
Section 35. 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

SB2279 Engrossed - 35 - LRB102 16048 HLH 21420 b
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,
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

SB2279 Engrossed - 36 - LRB102 16048 HLH 21420 b
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.
Notwithstanding any other provision of this Act to the
contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a
notice of tax liability under this Act will expire less than 12
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired.
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
appropriations available for that purpose. If it appears
unlikely that the amount 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

SB2279 Engrossed - 37 - LRB102 16048 HLH 21420 b
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 40. The Cigarette Tax Act is amended by changing
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

SB2279 Engrossed - 38 - LRB102 16048 HLH 21420 b
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
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

SB2279 Engrossed - 39 - LRB102 16048 HLH 21420 b
liability under this Act, the claim may be filed at any time
prior to the expiration of the period agreed upon.
Notwithstanding any other provision of this Act to the
contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a
notice of tax liability under this Act will expire less than 12
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired.
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
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount appropriated would permit
everyone having a claim allowed during the period covered by

SB2279 Engrossed - 40 - LRB102 16048 HLH 21420 b
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.)
Section 45. 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

SB2279 Engrossed - 41 - LRB102 16048 HLH 21420 b
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
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

SB2279 Engrossed - 42 - LRB102 16048 HLH 21420 b
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.
Notwithstanding any other provision of this Act to the
contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a
notice of tax liability under this Act will expire less than 12
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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.

SB2279 Engrossed - 43 - LRB102 16048 HLH 21420 b
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 50. The Property Tax Code is amended by changing
Sections 11-25 and 16-180 as follows:
(35 ILCS 200/11-25)
Sec. 11-25. Certification procedure. Application for a
pollution control facility certificate shall be filed with the
Pollution Control Board in a manner and form prescribed in
regulations issued by that board. The application shall

SB2279 Engrossed - 44 - LRB102 16048 HLH 21420 b
contain appropriate and available descriptive information
concerning anything claimed to be entitled in whole or in part
to tax treatment as a pollution control facility. If it is
found that the claimed facility or relevant portion thereof is
a pollution control facility as defined in Section 11-10, the
Pollution Control Board, acting through its Chairman or his or
her specifically authorized delegate, shall enter a finding
and issue a certificate to that effect. The certificate shall
require tax treatment as a pollution control facility, but
only for the portion certified if only a portion is certified.
The effective date of a certificate shall be the date of the
last submission of documentation that finalizes the
application for the certificate or the date of the
construction of the facility, whichever is later.
(Source: P.A. 100-201, eff. 8-18-17.)
(35 ILCS 200/16-180)
Sec. 16-180. Procedure for determination of correct
assessment and filing fees.
(a) The Property Tax Appeal Board shall establish by rules
an informal procedure for the determination of the correct
assessment of property which is the subject of an appeal. The
procedure, to the extent that the Board considers practicable,
shall eliminate formal rules of pleading, practice and
evidence, and except for any reasonable filing fee determined
by the Board, may provide that costs shall be in the discretion

SB2279 Engrossed - 45 - LRB102 16048 HLH 21420 b
of the Board. A copy of the appellant's petition shall be
mailed or sent by electronic means by the clerk of the Property
Tax Appeal Board to the board of review whose decision is being
appealed. In all cases where a change in assessed valuation of
$100,000 or more is sought, the board of review shall serve a
copy of the petition on all taxing districts as shown on the
last available tax bill. The chairman of the Property Tax
Appeal Board shall provide for the speedy hearing of all such
appeals. Each appeal shall be limited to the grounds listed in
the petition filed with the Property Tax Appeal Board. All
appeals shall be considered de novo and the Property Tax
Appeal Board shall not be limited to the evidence presented to
the board of review of the county. A party participating in the
hearing before the Property Tax Appeal Board is entitled to
introduce evidence that is otherwise proper and admissible
without regard to whether that evidence has previously been
introduced at a hearing before the board of review of the
county. Where no complaint has been made to the board of review
of the county where the property is located and the appeal is
based solely on the effect of an equalizing factor assigned to
all property or to a class of property by the board of review,
the Property Tax Appeal Board shall not grant a reduction in
assessment greater than the amount that was added as the
result of the equalizing factor.
The provisions added to this Section by this amendatory
Act of the 93rd General Assembly shall be construed as

SB2279 Engrossed - 46 - LRB102 16048 HLH 21420 b
declaratory of existing law and not as a new enactment.
(b) The Property Tax Appeal Board Supplemental Fund is
created as a special fund in the State treasury. All filing
fees collected by the Board in accordance with this Section
shall be deposited into the Property Tax Appeal Board
Supplemental Fund. All moneys in the Property Tax Appeal Board
Supplemental Fund shall be appropriated to the Board, on an
annual basis, to be used in enhancing the Board's operations,
including, but not limited to, information technology
initiatives, personnel, and office equipment for increasing
the Board's efficiency in rendering final administrative
decisions in a timely fashion.
(Source: P.A. 99-626, eff. 7-22-16.)
Section 55. 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.

SB2279 Engrossed - 47 - LRB102 16048 HLH 21420 b
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
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

SB2279 Engrossed - 48 - LRB102 16048 HLH 21420 b
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. Notwithstanding any other provision
of this Act to the contrary, for any period included in a claim
for credit or refund for which the statute of limitations for
issuing a notice of tax liability under this Act will expire
less than 12 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is
automatically extended for 12 months from the date it would
have otherwise expired.
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount appropriated would permit

SB2279 Engrossed - 49 - LRB102 16048 HLH 21420 b
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 Gas Revenue Tax Act is amended by changing
Section 6 as follows:
(35 ILCS 615/6) (from Ch. 120, par. 467.21)
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

SB2279 Engrossed - 50 - LRB102 16048 HLH 21420 b
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. Notwithstanding any other provision
of this Act to the contrary, for any period included in a claim
for credit or refund for which the statute of limitations for

SB2279 Engrossed - 51 - LRB102 16048 HLH 21420 b
issuing a notice of tax liability under this Act will expire
less than 12 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is
automatically extended for 12 months from the date it would
have otherwise expired.
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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.)

SB2279 Engrossed - 52 - LRB102 16048 HLH 21420 b
Section 65. 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 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

SB2279 Engrossed - 53 - LRB102 16048 HLH 21420 b
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. Notwithstanding any other provision
of this Act to the contrary, for any period included in a claim
for credit or refund for which the statute of limitations for
issuing a notice of tax liability under this Act will expire
less than 12 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is
automatically extended for 12 months from the date it would
have otherwise expired.

SB2279 Engrossed - 54 - LRB102 16048 HLH 21420 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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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 70. The Water Company Invested Capital Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 625/6) (from Ch. 120, par. 1416)
Sec. 6. If it appears, after claim therefor filed with the

SB2279 Engrossed - 55 - LRB102 16048 HLH 21420 b
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
assigned and set over by the lawful holder thereof, subject to

SB2279 Engrossed - 56 - LRB102 16048 HLH 21420 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. Notwithstanding any other provision
of this Act to the contrary, for any period included in a claim
for credit or refund for which the statute of limitations for
issuing a notice of tax liability under this Act will expire
less than 12 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is
automatically extended for 12 months from the date it would
have otherwise expired.
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.

SB2279 Engrossed - 57 - LRB102 16048 HLH 21420 b
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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 75. 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

SB2279 Engrossed - 58 - LRB102 16048 HLH 21420 b
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
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

SB2279 Engrossed - 59 - LRB102 16048 HLH 21420 b
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 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.
Notwithstanding any other provision of this Act to the
contrary, for any period included in a claim for credit or
refund for which the statute of limitations for issuing a
notice of tax liability under this Act will expire less than 12

SB2279 Engrossed - 60 - LRB102 16048 HLH 21420 b
months after the date a taxpayer files the claim for credit or
refund, the statute of limitations is automatically extended
for 12 months from the date it would have otherwise expired.
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
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

SB2279 Engrossed - 61 - LRB102 16048 HLH 21420 b
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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

SB2279 Engrossed - 62 - LRB102 16048 HLH 21420 b
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 80. The Liquor Control Act of 1934 is amended by
changing Section 8-3 as follows:
(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

SB2279 Engrossed - 63 - LRB102 16048 HLH 21420 b
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
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. Notwithstanding
any other provision of this Act to the contrary, for any period

SB2279 Engrossed - 64 - LRB102 16048 HLH 21420 b
included in a claim for credit or refund for which the statute
of limitations for issuing a notice of tax liability under
this Act will expire less than 12 months after the date a
taxpayer files the claim for credit or refund, the statute of
limitations is automatically extended for 12 months from the
date it would have otherwise expired.
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 such
appropriation as may be available for that purpose. If it
appears unlikely that the amount 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 99. Effective date. This Act takes effect upon
becoming law.
SB2279 Engrossed - 65 - LRB102 16048 HLH 21420 b
INDEX
Statutes amended in order of appearance