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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2562 Introduced 2/16/2016, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
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| 35 ILCS 120/11 | from Ch. 120, par. 450 |
| Amends the Retailers' Occupation Tax Act. Provides that the Department of Revenue may furnish certain financial information to municipalities and counties (now, only municipalities) if the municipality or county agrees in writing to the Act's confidentiality provisions. Provides that the Department of Revenue is authorized to provide the information to municipalities or counties by electronic means.
Provides that the Department may disclose the standard classification number assigned to a business. Provides that only the chief executive officer or chairman of the municipality or county may enter into an information-sharing agreement with the Department. Requires the chief executive officer or chairman to provide the Department with a list of municipal or county employees who may request return information, view return information, or receive related information. Contains provisions concerning the cancellation of the agreement.
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| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Retailers' Occupation Tax Act is amended by |
| 5 | | changing Section 11 as follows:
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| 6 | | (35 ILCS 120/11) (from Ch. 120, par. 450)
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| 7 | | Sec. 11. All information received by the Department from |
| 8 | | returns filed
under this Act, or from any investigation |
| 9 | | conducted under this Act, shall
be confidential, except for |
| 10 | | official purposes, and any person who divulges
any such |
| 11 | | information in any manner, except in accordance with a proper
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| 12 | | judicial order or as otherwise provided by law, shall be guilty |
| 13 | | of a Class
B misdemeanor with a fine not to exceed $7,500.
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| 14 | | Nothing in this Act prevents the Director of Revenue from |
| 15 | | publishing or
making available to the public the names and |
| 16 | | addresses of persons filing
returns under this Act, or |
| 17 | | reasonable statistics concerning the operation
of the tax by |
| 18 | | grouping the contents of returns so the information in any
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| 19 | | individual return is not disclosed.
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| 20 | | Nothing in this Act prevents the Director of Revenue from |
| 21 | | divulging to
the United States Government or the government of |
| 22 | | any other state, or any
officer or agency thereof, for |
| 23 | | exclusively official purposes, information
received by the |
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| 1 | | Department in administering this Act, provided that such
other |
| 2 | | governmental agency agrees to divulge requested tax |
| 3 | | information to
the Department.
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| 4 | | The Department's furnishing of information derived from a |
| 5 | | taxpayer's
return or from an investigation conducted under this |
| 6 | | Act to the surety on a
taxpayer's bond that has been furnished |
| 7 | | to the Department under this Act,
either to provide notice to |
| 8 | | such surety of its potential liability under
the bond or, in |
| 9 | | order to support the Department's demand for payment from
such |
| 10 | | surety under the bond, is an official purpose within the |
| 11 | | meaning of
this Section.
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| 12 | | The furnishing upon request of information obtained by the |
| 13 | | Department
from returns filed under this Act or investigations |
| 14 | | conducted under this
Act to the Illinois Liquor Control |
| 15 | | Commission for official use is deemed to
be an official purpose |
| 16 | | within the meaning of this Section.
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| 17 | | Notice to a surety of potential liability shall not be |
| 18 | | given unless the
taxpayer has first been notified, not less |
| 19 | | than 10 days prior thereto, of
the Department's intent to so |
| 20 | | notify the surety.
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| 21 | | The furnishing upon request of the Auditor General, or his |
| 22 | | authorized agents,
for official use, of returns filed and |
| 23 | | information related thereto under
this Act is deemed to be an |
| 24 | | official purpose within the meaning of this
Section.
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| 25 | | Where an appeal or a protest has been filed on behalf of a |
| 26 | | taxpayer, the
furnishing upon request of the attorney for the |
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| 1 | | taxpayer of returns filed
by the taxpayer and information |
| 2 | | related thereto under this Act is deemed
to be an official |
| 3 | | purpose within the meaning of this Section.
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| 4 | | The furnishing of financial information to a municipality |
| 5 | | or county, upon request of the chief executive officer or |
| 6 | | chairman Chief
Executive thereof, as appropriate, is an |
| 7 | | official purpose within the meaning of this Section,
provided |
| 8 | | the municipality or county agrees in
writing to the |
| 9 | | requirements of this Section. Information provided to |
| 10 | | municipalities and counties under this paragraph shall be |
| 11 | | limited to: (1) the business name; (2) the business address; |
| 12 | | (3) the standard classification number assigned to the |
| 13 | | business; (4) net revenue distributed to the requesting |
| 14 | | municipality or county that is directly related to the |
| 15 | | requesting municipality's or county's local share of the |
| 16 | | proceeds under the Use Tax Act, the Service Use Tax Act, the |
| 17 | | Service Occupation Tax Act, and the Retailers' Occupation Tax |
| 18 | | Act distributed from the Local Government Tax Fund, and, if |
| 19 | | applicable, any locally imposed retailers' occupation tax or |
| 20 | | service occupation tax; and (5) (4) a listing of all businesses |
| 21 | | within the requesting municipality or county by account |
| 22 | | identification number and address. On and after July 1, 2015, |
| 23 | | the furnishing of financial information to municipalities or |
| 24 | | counties under this paragraph may be by electronic means.
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| 25 | | Information so provided shall be subject to all |
| 26 | | confidentiality provisions
of this Section. The written |
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| 1 | | agreement shall provide for reciprocity,
limitations on |
| 2 | | access, disclosure, and procedures for requesting information. |
| 3 | | Only the chief executive officer or chairman of the |
| 4 | | municipality or county, as appropriate, may initiate the |
| 5 | | written agreement with the Department. The chief executive |
| 6 | | officer or chairman of the municipality or county, as |
| 7 | | appropriate, shall provide the Department with a list of names |
| 8 | | and official titles of municipal or county employees, as |
| 9 | | appropriate, designated by the him or her as persons |
| 10 | | exclusively authorized to request return information, view |
| 11 | | return information, or receive related information on his or |
| 12 | | her behalf. This list shall be restricted solely to municipal |
| 13 | | or county employees, as appropriate, who are directly involved |
| 14 | | in the financial operations of the municipality or county, and |
| 15 | | the financial information provided by the Department shall not |
| 16 | | be viewed by or shared with anyone who is not approved by the |
| 17 | | Department. The written agreement may be canceled by either the |
| 18 | | Department or the chief executive officer or chairman, as |
| 19 | | appropriate, of the municipality or county at any time and |
| 20 | | shall be canceled in the event of any unauthorized use or |
| 21 | | disclosure of State tax return information obtained pursuant to |
| 22 | | the written agreement, or in the event of a failure to abide by |
| 23 | | the procedures set forth in the agreement by the Department for |
| 24 | | safeguarding the confidentiality of such return information.
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| 25 | | The Department may make available to the Board of Trustees |
| 26 | | of any Metro
East Mass Transit District information contained |
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| 1 | | on transaction reporting
returns required to be filed under |
| 2 | | Section 3 of this Act that report sales made
within the |
| 3 | | boundary of the taxing authority of that Metro East Mass |
| 4 | | Transit
District, as provided in Section 5.01 of the Local Mass |
| 5 | | Transit District Act.
The disclosure shall be made pursuant to |
| 6 | | a written agreement between the
Department and the Board of |
| 7 | | Trustees of a Metro East Mass Transit District,
which is an |
| 8 | | official purpose within the meaning of this Section. The |
| 9 | | written
agreement between the Department and the Board of |
| 10 | | Trustees of a Metro East
Mass Transit District shall provide |
| 11 | | for reciprocity, limitations on access,
disclosure, and |
| 12 | | procedures for requesting information. Information so provided
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| 13 | | shall be subject to all confidentiality provisions of this |
| 14 | | Section.
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| 15 | | The Director may make available to any State agency, |
| 16 | | including the
Illinois Supreme Court, which licenses persons to |
| 17 | | engage in any occupation,
information that a person licensed by |
| 18 | | such agency has failed to file
returns under this Act or pay |
| 19 | | the tax, penalty and interest shown therein,
or has failed to |
| 20 | | pay any final assessment of tax, penalty or interest due
under |
| 21 | | this Act.
The Director may make available to any State agency, |
| 22 | | including the Illinois
Supreme
Court, information regarding |
| 23 | | whether a bidder, contractor, or an affiliate of a
bidder or
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| 24 | | contractor has failed to collect and remit Illinois Use tax on |
| 25 | | sales into
Illinois, or any tax
under this Act or pay the tax, |
| 26 | | penalty, and interest shown therein, or has
failed to pay any
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| 1 | | final assessment of tax, penalty, or interest due under this |
| 2 | | Act, for the
limited purpose of
enforcing bidder and contractor |
| 3 | | certifications. The Director may make available
to units
of |
| 4 | | local government and school districts that require bidder and |
| 5 | | contractor
certifications,
as set forth in Sections 50-11 and |
| 6 | | 50-12 of the Illinois Procurement Code,
information
regarding |
| 7 | | whether a bidder, contractor, or an affiliate of a bidder or
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| 8 | | contractor has failed
to collect and remit Illinois Use tax on |
| 9 | | sales into Illinois, file returns under
this Act, or
pay the |
| 10 | | tax, penalty, and interest shown therein, or has failed to pay |
| 11 | | any final
assessment
of tax, penalty, or interest due under |
| 12 | | this Act, for the limited purpose of
enforcing bidder
and |
| 13 | | contractor certifications. For purposes of this Section, the |
| 14 | | term
"affiliate" means any
entity that (1) directly, |
| 15 | | indirectly, or constructively controls another
entity,
(2) is |
| 16 | | directly,
indirectly, or constructively controlled by another |
| 17 | | entity, or (3) is subject
to
the control of
a common entity. |
| 18 | | For purposes of this Section, an entity controls another
entity
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| 19 | | if it owns,
directly or individually, more than 10% of the |
| 20 | | voting securities of that
entity.
As used in
this Section, the |
| 21 | | term "voting security" means a security that (1) confers upon
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| 22 | | the holder
the right to vote for the election of members of the |
| 23 | | board of directors or
similar governing
body of the business or |
| 24 | | (2) is convertible into, or entitles the holder to
receive upon |
| 25 | | its
exercise, a security that confers such a right to vote. A |
| 26 | | general partnership
interest is a
voting security.
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| 1 | | The Director may make available to any State agency, |
| 2 | | including the
Illinois
Supreme Court, units of local |
| 3 | | government, and school districts, information
regarding
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| 4 | | whether a bidder or contractor is an affiliate of a person who |
| 5 | | is not
collecting
and
remitting Illinois Use taxes for the |
| 6 | | limited purpose of enforcing bidder and
contractor
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| 7 | | certifications.
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| 8 | | The Director may also make available to the Secretary of |
| 9 | | State
information that a limited liability company, which has |
| 10 | | filed articles of
organization with the Secretary of State, or |
| 11 | | corporation which has been
issued a certificate of |
| 12 | | incorporation by the Secretary of State has failed to
file |
| 13 | | returns under this Act or pay the tax, penalty and interest |
| 14 | | shown therein,
or has failed to pay any final assessment of |
| 15 | | tax, penalty or interest due under
this Act. An assessment is |
| 16 | | final when all proceedings in court for review of
such |
| 17 | | assessment have terminated or the time for the taking thereof |
| 18 | | has expired
without such proceedings being instituted.
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| 19 | | The Director shall make available for public inspection in |
| 20 | | the Department's
principal office and for publication, at cost, |
| 21 | | administrative decisions issued
on or after January 1, 1995. |
| 22 | | These decisions are to be made available in a
manner so that |
| 23 | | the following taxpayer information is not disclosed:
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| 24 | | (1) The names, addresses, and identification numbers |
| 25 | | of the taxpayer,
related entities, and employees.
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| 26 | | (2) At the sole discretion of the Director, trade |
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| 1 | | secrets
or other confidential information identified as |
| 2 | | such by the taxpayer, no later
than 30 days after receipt |
| 3 | | of an administrative decision, by such means as the
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| 4 | | Department shall provide by rule.
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| 5 | | The Director shall determine the appropriate extent of the |
| 6 | | deletions allowed
in paragraph (2). In the event the taxpayer |
| 7 | | does not submit deletions, the
Director shall make only the |
| 8 | | deletions specified in paragraph (1).
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| 9 | | The Director shall make available for public inspection and |
| 10 | | publication an
administrative decision within 180 days after |
| 11 | | the issuance of the
administrative decision. The term |
| 12 | | "administrative decision" has the same
meaning as defined in |
| 13 | | Section 3-101 of Article III of the Code of Civil
Procedure. |
| 14 | | Costs collected under this Section shall be paid into the Tax
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| 15 | | Compliance and Administration Fund.
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| 16 | | Nothing contained in this Act shall prevent the Director |
| 17 | | from divulging
information to any person pursuant to a request |
| 18 | | or authorization made by the
taxpayer or by an authorized |
| 19 | | representative of the taxpayer.
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| 20 | | (Source: P.A. 98-1058, eff. 1-1-15.)
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