Bill Text: IL SB3093 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Retailers' Occupation Tax Act and the Liquor Control Act of 1934. Provides that, if any licensee authorized to sell alcoholic liquor at retail has had the renewal of his or her certificate of registration denied by the Department of Revenue or if such a licensee's certificate of registration has been revoked by the Department of Revenue, then the Department of Revenue shall file a notice with the Liquor Control Commission that includes a certification, signed by Director of Revenue or his or her designee, attesting that the renewal of the person's certificate of registration has been denied or that the person's certificate of registration has been revoked, as applicable, after notice and an opportunity to be heard. Provides that the Liquor Control Commission shall inactivate the license of that licensee until the Department of Revenue notifies the Liquor Control Commission that the violation resulting in the nonrenewal or revocation has been remedied and the certificate of registration has been reinstated by the Department of Revenue. Effective immediately

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3093 Detail]

Download: Illinois-2023-SB3093-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3093 Introduced 2/2/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
35 ILCS 120/2a from Ch. 120, par. 441a
35 ILCS 120/2b from Ch. 120, par. 441b
235 ILCS 5/1-3.45 new
235 ILCS 5/7-6.5 new
Amends the Retailers' Occupation Tax Act and the Liquor Control Act of 1934. Provides that, if any licensee authorized to sell alcoholic liquor at retail has had the renewal of his or her certificate of registration denied by the Department of Revenue or if such a licensee's certificate of registration has been revoked by the Department of Revenue, then the Department of Revenue shall file a notice with the Liquor Control Commission that includes a certification, signed by Director of Revenue or his or her designee, attesting that the renewal of the person's certificate of registration has been denied or that the person's certificate of registration has been revoked, as applicable, after notice and an opportunity to be heard. Provides that the Liquor Control Commission shall inactivate the license of that licensee until the Department of Revenue notifies the Liquor Control Commission that the violation resulting in the nonrenewal or revocation has been remedied and the certificate of registration has been reinstated by the Department of Revenue. Effective immediately
LRB103 34187 HLH 64010 b
A BILL FOR
SB3093 LRB103 34187 HLH 64010 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Retailers' Occupation Tax Act is amended by
changing Sections 2a and 2b as follows:
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
(Text of Section before amendment by P.A. 103-319)
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
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

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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
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

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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 years prior to the date of 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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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,
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

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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
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

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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
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

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(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
reasons therefor.
(Source: P.A. 101-31, eff. 6-28-19; 102-40, eff. 6-25-21.)
(Text of Section after amendment by P.A. 103-319)
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 (i) is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department or (ii) fails to file any
return, on or before the due date prescribed for filing that
return (including any extensions of time granted by the
Department), that the retailer is required to file under this

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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 years prior to the date of 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

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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
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

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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
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

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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
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

SB3093 - 22 - LRB103 34187 HLH 64010 b
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
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

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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
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 a person who is licensed as a retailer of alcoholic
liquor under the Liquor Control Act of 1934 has had the renewal
of his or her certificate of registration denied under this

SB3093 - 24 - LRB103 34187 HLH 64010 b
Section 2a, then, pursuant to Section 7-6.5 of the Liquor
Control Act of 1934, the Department shall file a notice with
the Liquor Control Commission that includes a certification,
signed by the Director of Revenue or his or her designee,
attesting that the renewal of the person's certificate of
registration has been denied after notice and an opportunity
to be heard. The Department shall also file a notice with the
Liquor Control Commission that includes a certification,
signed by the Director of Revenue or his or her designee, if
the violation resulting in the denial has been remedied and
the certificate of registration has been reinstated by the
Department.
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
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

SB3093 - 25 - LRB103 34187 HLH 64010 b
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
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

SB3093 - 26 - LRB103 34187 HLH 64010 b
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
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

SB3093 - 27 - LRB103 34187 HLH 64010 b
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,
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.

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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
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

SB3093 - 29 - LRB103 34187 HLH 64010 b
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
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

SB3093 - 30 - LRB103 34187 HLH 64010 b
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
reasons therefor.
(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
(35 ILCS 120/2b) (from Ch. 120, par. 441b)
Sec. 2b. The Department may, after notice and a hearing as
provided herein, revoke the certificate of registration of any
person who violates any of the provisions of this Act. Before

SB3093 - 31 - LRB103 34187 HLH 64010 b
revocation of a certificate of registration the Department
shall, within 90 days after non-compliance and at least 7 days
prior to the date of the hearing, give the person so accused
notice in writing of the charge against him or her, and on the
date designated shall conduct a hearing upon this matter. The
lapse of such 90 day period shall not preclude the Department
from conducting revocation proceedings at a later date if
necessary. Any hearing held under this Section shall be
conducted by the Director of Revenue or by any officer or
employee of the Department designated, in writing, by the
Director of Revenue.
Upon the hearing of any such proceeding, the Director of
Revenue, or any officer or employee of the Department
designated, in writing, by the Director of Revenue, may
administer oaths and the Department may procure by its
subpoena the attendance of witnesses and, by its subpoena
duces tecum, the production of relevant books and papers. Any
circuit court, upon application either of the accused or of
the Department, may, by order duly entered, require the
attendance of witnesses and the production of relevant books
and papers, before the Department in any hearing relating to
the revocation of certificates of registration. Upon refusal
or neglect to obey the order of the court, the court may compel
obedience thereof by proceedings for contempt.
The Department may, by application to any circuit court,
obtain an injunction restraining any person who engages in the

SB3093 - 32 - LRB103 34187 HLH 64010 b
business of selling tangible personal property at retail in
this State without a certificate of registration (either
because the certificate of registration has been revoked or
because of a failure to obtain a certificate of registration
in the first instance) from engaging in such business until
such person, as if he or she were a new applicant for a
certificate of registration, shall comply with all of the
conditions, restrictions and requirements of Section 2a of
this Act and qualify for and obtain a certificate of
registration. Upon refusal or neglect to obey the order of the
court, the court may compel obedience thereof by proceedings
for contempt.
It shall not be a defense in a proceeding before the
Department to revoke a certificate of registration issued
under the Act, or in any action by the Department to collect
any tax due under this Act, that the holder of the certificate
is a party to an installment payment agreement under Section
2a of this Act if the liability which is the basis of the
revocation proceeding, or the tax that is sought to be
collected: (1) was incurred after the date of the agreement
was approved by the Department; or (2) was incurred prior to
the date the agreement was approved by the Department, but was
not included in the agreement; or (3) was included in the
agreement, but the taxpayer is in default of the agreement.
If a person who is licensed as a retailer of alcoholic
liquor under the Liquor Control Act of 1934 has had his or her

SB3093 - 33 - LRB103 34187 HLH 64010 b
certificate of registration revoked under this Section 2b,
then, pursuant to Section 7-6.5 of the Liquor Control Act of
1934, the Department shall file a notice with the Liquor
Control Commission that includes a certification, signed by
the Director of Revenue or his or her designee, attesting that
the person's certificate of registration has been revoked
after notice and an opportunity to be heard. The Department
shall also file a notice with the Liquor Control Commission
that includes a certification, signed by the Director of
Revenue or his or her designee, if the violation resulting in
the revocation has been remedied and the certificate of
registration has been reinstated by the Department.
(Source: P.A. 86-338; 86-383; 86-1028.)
Section 10. The Liquor Control Act of 1934 is amended by
adding Sections 1-3.45 and 7-6.5 as follows:
(235 ILCS 5/1-3.45 new)
Sec. 1-3.45. Inactive license. "Inactive license" means a
status of licensure in which the licensee holds a current
license under this Act but is prohibited from engaging in all
licensed activities because the licensee does not hold an
active certificate of registration issued by the Department of
Revenue pursuant to the Retailers' Occupation Tax Act.
(235 ILCS 5/7-6.5 new)

SB3093 - 34 - LRB103 34187 HLH 64010 b
Sec. 7-6.5. Inactive licenses; certificate of
registration.
(a) If any licensee authorized to sell alcoholic liquor at
retail has had the renewal of the licensee's certificate of
registration denied by the Department of Revenue pursuant to
Section 2a of the Retailers' Occupation Tax Act or if such a
licensee's certificate of registration has been revoked by the
Department of Revenue pursuant to Section 2b of the Retailers'
Occupation Tax Act, then the Department of Revenue shall file
a notice with the Commission that includes a certification,
signed by Director of Revenue or his or her designee,
attesting that the renewal of the person's certificate of
registration has been denied or that the person's certificate
of registration has been revoked, as applicable, after notice
and an opportunity to be heard. Notwithstanding any provision
of this Act to the contrary, upon receipt of a notice under
this subsection (a) that a licensee's certificate of
registration has not been renewed or has been revoked, the
Commission shall inactivate the license of that licensee until
the Department of Revenue notifies the Commission that the
violation resulting in the nonrenewal or revocation has been
remedied and the certificate of registration has been
reinstated by the Department of Revenue.
(b) Distributors licensed under this Act are prohibited
from selling alcoholic liquor to retailers with an inactive
license under this Section, and those retailers are prohibited

SB3093 - 35 - LRB103 34187 HLH 64010 b
from purchasing alcoholic liquor from distributors and from
engaging in any other activity licensed under this Act pending
notification by the Department of Revenue that the nonrenewal
or revocation has been resolved to the Department of Revenue's
satisfaction.
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.