| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| 1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
| 3 | represented in the General Assembly:
| ||||||||||||||||||||||||
| 4 | Section 2. The Uniform Disposition of Unclaimed Property | ||||||||||||||||||||||||
| 5 | Act is reenacted as follows:
| ||||||||||||||||||||||||
| 6 | (765 ILCS 1025/Act title)
| ||||||||||||||||||||||||
| 7 | An Act relating to the disposition of
unclaimed property, | ||||||||||||||||||||||||
| 8 | to make uniform the law with reference thereto, to
provide | ||||||||||||||||||||||||
| 9 | penalties for the violation thereof and to make an | ||||||||||||||||||||||||
| 10 | appropriation
with relation thereto.
| ||||||||||||||||||||||||
| 11 | (765 ILCS 1025/0.05)
| ||||||||||||||||||||||||
| 12 | Sec. 0.05. Transfer of powers. The rights, powers, duties, | ||||||||||||||||||||||||
| 13 | and functions
vested in the Department of Financial | ||||||||||||||||||||||||
| 14 | Institutions to administer this Act are
transferred to the | ||||||||||||||||||||||||
| 15 | State Treasurer on July 1, 1999 in accordance with
Sections | ||||||||||||||||||||||||
| 16 | 0.02 through 0.06 of the State Treasurer Act; provided, | ||||||||||||||||||||||||
| 17 | however, that
the rights, powers, duties, and functions
| ||||||||||||||||||||||||
| 18 | involving the examination of the records of any person that the | ||||||||||||||||||||||||
| 19 | State Treasurer
has reason to believe has failed to report | ||||||||||||||||||||||||
| 20 | properly under this Act shall be
transferred to the Office of | ||||||||||||||||||||||||
| 21 | Banks and Real Estate if the person is regulated
by the Office | ||||||||||||||||||||||||
| 22 | of Banks and Real Estate under the Illinois Banking Act, the
| ||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | Corporate Fiduciary Act, the Foreign Banking Office Act, the | ||||||
| 2 | Illinois Savings
and Loan Act of 1985, or the Savings Bank Act
| ||||||
| 3 | and shall be retained by the Department of Financial | ||||||
| 4 | Institutions if the
person is doing business in the State under | ||||||
| 5 | the supervision of the Department
of Financial Institutions, | ||||||
| 6 | the National Credit Union Administration, the Office
of Thrift | ||||||
| 7 | Supervision, or the Comptroller of the Currency.
| ||||||
| 8 | (Source: P.A. 91-16, eff. 6-4-99.)
| ||||||
| 9 | (765 ILCS 1025/1) (from Ch. 141, par. 101)
| ||||||
| 10 | Sec. 1. As used in this Act, unless the context otherwise | ||||||
| 11 | requires:
| ||||||
| 12 | (a) "Banking organization" means any bank, trust company, | ||||||
| 13 | savings bank,
industrial bank, land bank, safe deposit company, | ||||||
| 14 | or a private banker.
| ||||||
| 15 | (b) "Business association" means any corporation, joint | ||||||
| 16 | stock company,
business trust, partnership, or any
| ||||||
| 17 | association, limited liability company, or other business | ||||||
| 18 | entity consisting
of one or more persons, whether or not for | ||||||
| 19 | profit.
| ||||||
| 20 | (c) "Financial organization" means any savings and loan | ||||||
| 21 | association,
building and loan association, credit union, | ||||||
| 22 | currency exchange,
co-operative bank, mutual funds, or | ||||||
| 23 | investment company.
| ||||||
| 24 | (d) "Holder" means any person in possession of property | ||||||
| 25 | subject to this
Act belonging to another, or who is trustee in | ||||||
| |||||||
| |||||||
| 1 | case of a trust, or is
indebted to another on an obligation | ||||||
| 2 | subject to this Act.
| ||||||
| 3 | (e) "Life insurance corporation" means any association or | ||||||
| 4 | corporation
transacting the business of insurance on the lives | ||||||
| 5 | of
persons or insurance appertaining thereto, including, but | ||||||
| 6 | not by way of
limitation, endowments and annuities.
| ||||||
| 7 | (f) "Owner" means a depositor in case of a deposit, a | ||||||
| 8 | beneficiary in
case of a trust, a creditor, claimant, or payee | ||||||
| 9 | in case of other property, or any person having a legal or | ||||||
| 10 | equitable interest in property
subject to this Act, or his | ||||||
| 11 | legal representative.
| ||||||
| 12 | (g) "Person" means any individual, business association, | ||||||
| 13 | financial
organization, government or
political subdivision or | ||||||
| 14 | agency, public authority,
estate, trust, or any other legal or
| ||||||
| 15 | commercial entity.
| ||||||
| 16 | (h) "Utility" means any person who owns or operates,
for | ||||||
| 17 | public use, any plant, equipment, property, franchise, or | ||||||
| 18 | license for
the transmission of communications or the | ||||||
| 19 | production, storage,
transmission, sale, delivery, or | ||||||
| 20 | furnishing of electricity, water,
steam, oil or gas.
| ||||||
| 21 | (i) (Blank).
| ||||||
| 22 | (j) "Insurance company" means any person transacting the | ||||||
| 23 | kinds of
business enumerated in Section 4 of the Illinois | ||||||
| 24 | Insurance Code other than
life insurance.
| ||||||
| 25 | (k) "Economic loss", as used in Sections 2a and 9 of this | ||||||
| 26 | Act includes,
but is not limited to,
delivery charges, | ||||||
| |||||||
| |||||||
| 1 | mark-downs and write-offs, carrying
costs, restocking charges, | ||||||
| 2 | lay-aways, special orders, issuance of credit memos,
and the | ||||||
| 3 | costs of special services or goods
provided that reduce the | ||||||
| 4 | property value or that result in lost sales
opportunity.
| ||||||
| 5 | (l) "Reportable property" means property, tangible or | ||||||
| 6 | intangible, presumed
abandoned under this Act that must be | ||||||
| 7 | appropriately and timely reported and
remitted to the Office of | ||||||
| 8 | the State Treasurer under this
Act. Interest, dividends, stock | ||||||
| 9 | splits,
warrants, or other rights that become reportable | ||||||
| 10 | property under this Act
include the underlying security or | ||||||
| 11 | commodity giving rise to the interest,
dividend, split, | ||||||
| 12 | warrant, or other right to which the owner would be entitled.
| ||||||
| 13 | (m) "Firearm" has the meaning ascribed to that term in the | ||||||
| 14 | Firearm Owners
Identification Card Act.
| ||||||
| 15 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99; 91-748, | ||||||
| 16 | eff. 6-2-00.)
| ||||||
| 17 | (765 ILCS 1025/1.5) | ||||||
| 18 | Sec. 1.5. Application of the Act. This Act applies to all | ||||||
| 19 | money returned to the Treasurer by the paying agent for any | ||||||
| 20 | State bonds or interest coupons by reason of the failure of the | ||||||
| 21 | holder to present such bonds or coupons for payment within 2 | ||||||
| 22 | years after maturity.
| ||||||
| 23 | (Source: P.A. 97-935, eff. 8-10-12.)
| ||||||
| 24 | (765 ILCS 1025/2) (from Ch. 141, par. 102)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 2. Property held by financial organizations; | ||||||
| 2 | presumption of
abandonment. The following property held or | ||||||
| 3 | owing by a banking or financial
organization is presumed | ||||||
| 4 | abandoned:
| ||||||
| 5 | (a) Any demand, savings, or matured time deposit with
a | ||||||
| 6 | banking organization, together with any interest or dividend | ||||||
| 7 | thereon,
excluding any charges that may lawfully be withheld, | ||||||
| 8 | unless the owner has,
within 5 years:
| ||||||
| 9 | (1) Increased or decreased the amount of the deposit, | ||||||
| 10 | or presented the
passbook or other similar evidence of the | ||||||
| 11 | deposit for the crediting of
interest; or
| ||||||
| 12 | (2) Corresponded in writing with the banking | ||||||
| 13 | organization concerning the
deposit;
| ||||||
| 14 | (3) Otherwise indicated an interest in the deposit as | ||||||
| 15 | evidenced by a
memorandum on file with the banking | ||||||
| 16 | organization; or
| ||||||
| 17 | (4) Engaged in the following activity regarding other | ||||||
| 18 | funds or loan accounts with the banking organization: | ||||||
| 19 | (i) undertook one or more the above actions | ||||||
| 20 | described in subsection (a) of this Section regarding | ||||||
| 21 | any account that appears on a consolidated statement | ||||||
| 22 | with the inactive account; | ||||||
| 23 | (ii) increased or decreased the amount of funds in | ||||||
| 24 | any other account the owner has with the banking | ||||||
| 25 | organization; or | ||||||
| 26 | (iii) engaged in any other relationship with the | ||||||
| |||||||
| |||||||
| 1 | banking organization, including payment of any amounts | ||||||
| 2 | due on a loan. | ||||||
| 3 | The foregoing apply so long as the mailing address for the | ||||||
| 4 | owner in the banking organization's books and records is the | ||||||
| 5 | same for both the inactive account and for the active account.
| ||||||
| 6 | (b) Any funds paid toward the purchase of withdrawable
| ||||||
| 7 | shares
or other interest in a financial organization, or any | ||||||
| 8 | deposit made, and any interest or dividends thereon, excluding | ||||||
| 9 | any charges
that may be lawfully withheld, unless the owner has | ||||||
| 10 | within 5 years:
| ||||||
| 11 | (1) Increased or decreased the amount of the funds, or | ||||||
| 12 | deposit, or
presented an appropriate record for the | ||||||
| 13 | crediting of interest or dividends; or
| ||||||
| 14 | (2) Corresponded in writing with the financial | ||||||
| 15 | organization concerning
the funds or deposit;
| ||||||
| 16 | (3) Otherwise indicated an interest in the funds or | ||||||
| 17 | deposit as evidenced
by a memorandum on file with the | ||||||
| 18 | financial organization; or
| ||||||
| 19 | (4) Engaged in the following activity regarding other | ||||||
| 20 | funds or loan accounts with the financial organization: | ||||||
| 21 | (i) undertook one or more the above actions | ||||||
| 22 | described in subsection (b) of this Section regarding | ||||||
| 23 | any account that appears on a consolidated statement | ||||||
| 24 | with the inactive account; | ||||||
| 25 | (ii) increased or decreased the amount of funds in | ||||||
| 26 | any other account the owner has with the financial | ||||||
| |||||||
| |||||||
| 1 | organization; or | ||||||
| 2 | (iii) engaged in any other relationship with the | ||||||
| 3 | financial organization, including payment of any | ||||||
| 4 | amounts due on a loan. | ||||||
| 5 | The foregoing apply so long as the mailing address for the | ||||||
| 6 | owner in the financial organization's books and records is the | ||||||
| 7 | same for both the inactive account and for the active account.
| ||||||
| 8 | (c) Any sum payable on checks or on written
instruments on | ||||||
| 9 | which a banking or financial
organization
or business | ||||||
| 10 | association is directly liable including, by way of | ||||||
| 11 | illustration
but not of limitation, certificates of deposit, | ||||||
| 12 | drafts, money orders and
travelers checks, that with the | ||||||
| 13 | exception of travelers checks and unclaimed wages, payroll, and | ||||||
| 14 | salary has been
outstanding for more than 5 years from the date | ||||||
| 15 | it was payable, or from the
date of its issuance if payable on | ||||||
| 16 | demand, or, in the case of travelers checks,
that has been | ||||||
| 17 | outstanding for more than 15 years from the date of its | ||||||
| 18 | issuance,
or, in the case of unclaimed wages, payroll, or | ||||||
| 19 | salary, that has been outstanding for more than one year from | ||||||
| 20 | the date of its issuance, excluding any charges that may be | ||||||
| 21 | lawfully withheld
relating to money orders issued by currency | ||||||
| 22 | exchanges,
unless the owner has within 5 years (or within 15 | ||||||
| 23 | years in the case of travelers
checks or one year in the case | ||||||
| 24 | of unclaimed wages, payroll, or salary) corresponded in writing | ||||||
| 25 | with the banking or financial organization or
business | ||||||
| 26 | association concerning it, or otherwise indicated an interest | ||||||
| |||||||
| |||||||
| 1 | as
evidenced by a memorandum on file with the banking or | ||||||
| 2 | financial organization or
business association.
| ||||||
| 3 | (d) Any funds or other personal property, tangible or | ||||||
| 4 | intangible, removed
from a safe deposit box or any other | ||||||
| 5 | safekeeping repository or agency or
collateral deposit box on | ||||||
| 6 | which the lease or rental period
has expired due to nonpayment | ||||||
| 7 | of rental charges or other reason, or any
surplus amounts | ||||||
| 8 | arising from the sale thereof pursuant to law, that have
been | ||||||
| 9 | unclaimed by the owner for more than 5 years from the date on | ||||||
| 10 | which
the lease or rental period expired, subject to lien of | ||||||
| 11 | the holder for
reimbursement of costs incurred in the opening | ||||||
| 12 | of a safe deposit box as
determined by the holder's regular | ||||||
| 13 | schedule of charges.
| ||||||
| 14 | (e) Notwithstanding any other provision of this Section, no | ||||||
| 15 | deposit
except passbook, checking, NOW accounts, super NOW | ||||||
| 16 | accounts, money market
accounts, or such similar accounts as | ||||||
| 17 | established by Rule of the
State Treasurer,
held by a banking | ||||||
| 18 | or financial organization shall be presumed abandoned if
with | ||||||
| 19 | respect to such a deposit which specifies a definite maturity | ||||||
| 20 | date,
such organization was authorized in writing to extend or | ||||||
| 21 | rollover the
account for an additional like period and such | ||||||
| 22 | organization does so extend.
Such deposits are not presumed | ||||||
| 23 | abandoned less than 5 years from that final
maturity date.
| ||||||
| 24 | Property of any kind held in an individual retirement account | ||||||
| 25 | (IRA) is
not presumed abandoned earlier than 5 years after the | ||||||
| 26 | owner attains the age at
which distributions from the account | ||||||
| |||||||
| |||||||
| 1 | become mandatory under law.
| ||||||
| 2 | (f) Notwithstanding any other provision of this Section, | ||||||
| 3 | money of a minor
deposited pursuant to Section 24-21 of the | ||||||
| 4 | Probate Act of 1975 shall not be
presumed abandoned earlier | ||||||
| 5 | than 5 years after the minor attains legal age.
Such money | ||||||
| 6 | shall be deposited in an account which shall indicate the birth | ||||||
| 7 | date
of the minor.
| ||||||
| 8 | (Source: P.A. 97-270, eff. 8-8-11.)
| ||||||
| 9 | (765 ILCS 1025/2a) (from Ch. 141, par. 102a)
| ||||||
| 10 | Sec. 2a.
(a) Business associations shall report, pursuant | ||||||
| 11 | to Section 11 of
this Act, all property and any earnings | ||||||
| 12 | thereon to which the owner would be
entitled that have remained | ||||||
| 13 | unclaimed for 5 years and are therefore presumed
abandoned. | ||||||
| 14 | Before reporting and delivering property as required under this
| ||||||
| 15 | Act, a business association may deduct from the amount of | ||||||
| 16 | otherwise reportable
intangible personal property the economic | ||||||
| 17 | loss suffered by it in connection
with that intangible personal | ||||||
| 18 | property arising from transactions involving the
sale of | ||||||
| 19 | tangible personal property at retail. This property shall | ||||||
| 20 | consist of,
but is not limited to:
| ||||||
| 21 | (1) (blank);
| ||||||
| 22 | (2) deposits or payment for repair or purchase of goods | ||||||
| 23 | or services;
| ||||||
| 24 | (3) credit checks or memos, or customer overpayments;
| ||||||
| 25 | (4) stocks, bonds, or any other type of securities or | ||||||
| |||||||
| |||||||
| 1 | debt
instruments, and interest and dividends therefrom;
| ||||||
| 2 | (5) unidentified remittances, unrefunded overcharges;
| ||||||
| 3 | (6) unpaid claims, unpaid accounts payable or unpaid | ||||||
| 4 | commissions; and
| ||||||
| 5 | (7) credit balances - accounts receivable, checks | ||||||
| 6 | written off, employee
bond buying and profit-sharing.
| ||||||
| 7 | (b) Notwithstanding the provisions of subsection (a), any | ||||||
| 8 | property due or
owed by a business association to or for the | ||||||
| 9 | benefit of another business
association resulting from a | ||||||
| 10 | transaction occurring in the normal and ordinary
course of | ||||||
| 11 | business shall be exempt from the provisions of this Act.
| ||||||
| 12 | (c) Notwithstanding the provisions of subsection (a), | ||||||
| 13 | unclaimed wages, payroll, and salary, in any form, shall be | ||||||
| 14 | reported after remaining unclaimed for one year, pursuant to | ||||||
| 15 | Section 2. | ||||||
| 16 | (Source: P.A. 97-270, eff. 8-8-11.)
| ||||||
| 17 | (765 ILCS 1025/3) (from Ch. 141, par. 103)
| ||||||
| 18 | Sec. 3.
(a) Unclaimed funds, as defined in this Section, | ||||||
| 19 | held and owing by
a life insurance corporation shall be | ||||||
| 20 | presumed abandoned if the last known
address, according to the | ||||||
| 21 | records of the corporation, of the person
entitled to the funds | ||||||
| 22 | is within this State. If a person other than the
insured or | ||||||
| 23 | annuitant is entitled to the funds and no address of such | ||||||
| 24 | person
is known to the corporation or if it is not definite and | ||||||
| 25 | certain from the
records of the corporation what person is | ||||||
| |||||||
| |||||||
| 1 | entitled to the funds, it is
presumed that the last known | ||||||
| 2 | address of the person entitled to the funds is
the same as the | ||||||
| 3 | last known address of the insured or annuitant according to
the | ||||||
| 4 | records of the corporation.
| ||||||
| 5 | (b) "Unclaimed funds", as used in this Section, means all | ||||||
| 6 | moneys held
and owing by any life insurance corporation | ||||||
| 7 | unclaimed and unpaid for more
than 5 years after the moneys | ||||||
| 8 | became due and payable as established
from the records of the | ||||||
| 9 | corporation under any life or endowment insurance
policy or | ||||||
| 10 | annuity contract which has matured or terminated. A life | ||||||
| 11 | insurance
policy not matured by actual proof of the death of | ||||||
| 12 | the insured is deemed to be
matured and the proceeds thereof | ||||||
| 13 | are deemed to be due and payable if such
policy was in force | ||||||
| 14 | when the insured attained the limiting age under the
mortality | ||||||
| 15 | table on which the reserve is based, unless the person | ||||||
| 16 | appearing
entitled thereto has within the preceding 5 years, | ||||||
| 17 | (1) assigned, readjusted, or
paid premiums on the policy, or | ||||||
| 18 | subjected the policy to loan, or (2)
corresponded in writing | ||||||
| 19 | with the life insurance corporation concerning the
policy. | ||||||
| 20 | Moneys otherwise payable according to the records of the | ||||||
| 21 | corporation
are deemed due and payable although the policy or | ||||||
| 22 | contract has not been
surrendered as required.
| ||||||
| 23 | (Source: P.A. 87-925.)
| ||||||
| 24 | (765 ILCS 1025/3a) | ||||||
| 25 | Sec. 3a. Demutualization; insurance company. | ||||||
| |||||||
| |||||||
| 1 | (a) Property distributable in the course of a | ||||||
| 2 | demutualization, rehabilitation, or related reorganization of | ||||||
| 3 | an insurance company shall be deemed abandoned as follows: | ||||||
| 4 | (1) any funds, 2 years after the date of the | ||||||
| 5 | demutualization, rehabilitation, or reorganization, if the | ||||||
| 6 | funds remain unclaimed, and the owner has not otherwise | ||||||
| 7 | communicated with the holder or its agent regarding the | ||||||
| 8 | property as evidenced by a memorandum or other record on | ||||||
| 9 | file with the holder or its agent; | ||||||
| 10 | (2) any stock, 2 years after the date of the | ||||||
| 11 | demutualization, rehabilitation, or reorganization if | ||||||
| 12 | instruments or statements reflecting the distribution are | ||||||
| 13 | either mailed to the owner and returned by the post office | ||||||
| 14 | as undeliverable, or not mailed to the owner because of an | ||||||
| 15 | address on the books and records of the holder that is | ||||||
| 16 | known to be incorrect, and the owner has not otherwise | ||||||
| 17 | communicated with the holder or its agent regarding the | ||||||
| 18 | property as evidenced by a memorandum or other record on | ||||||
| 19 | file with the holder or its agent; and | ||||||
| 20 | (b) Property subject to items (1) and (2) of subsection (a) | ||||||
| 21 | of this Section shall be set apart and held in the | ||||||
| 22 | Demutualization Trust Fund, a special non-appropriated fund | ||||||
| 23 | hereby created in the State treasury, for the payment of claims | ||||||
| 24 | and expenses associated with the processing of the claims by | ||||||
| 25 | the State Treasurer and shall not be transferred to any other | ||||||
| 26 | fund until such time as the property would be reportable under | ||||||
| |||||||
| |||||||
| 1 | other Sections of this Act. The Demutualization Trust Fund | ||||||
| 2 | shall not be subject to Section 8h or 8j of the State Finance | ||||||
| 3 | Act.
| ||||||
| 4 | (c) Property not subject to the provisions of subsection | ||||||
| 5 | (a), within 2 years of distribution shall remain reportable | ||||||
| 6 | under other Sections of this Act.
| ||||||
| 7 | (Source: P.A. 94-686, eff. 11-2-05.)
| ||||||
| 8 | (765 ILCS 1025/4) (from Ch. 141, par. 104)
| ||||||
| 9 | Sec. 4.
The following funds held or owing by any utility | ||||||
| 10 | are presumed
abandoned:
| ||||||
| 11 | (a) Any deposit made by a subscriber with a utility to | ||||||
| 12 | secure payment
for, or any sum paid in advance for, utility | ||||||
| 13 | services to be furnished, less any
lawful deduction, that | ||||||
| 14 | has remained unclaimed by the
person appearing on the | ||||||
| 15 | records of the utility entitled thereto for more
than 5 | ||||||
| 16 | years after the termination of the services for which the
| ||||||
| 17 | deposit or advance payment was made.
| ||||||
| 18 | (b) Any sum which a utility has been ordered to refund | ||||||
| 19 | and which was
received for utility services rendered in | ||||||
| 20 | this State, together with any
interest thereon, less any | ||||||
| 21 | lawful deductions, that has remained unclaimed
by the | ||||||
| 22 | person appearing on the records of the utility entitled | ||||||
| 23 | thereto for
more than 5 years after the date it became | ||||||
| 24 | payable in accordance
with the final determination or order | ||||||
| 25 | providing for the refund.
| ||||||
| |||||||
| |||||||
| 1 | (c) Any capital credits or patronage capital retired, | ||||||
| 2 | returned,
refunded or tendered to a member of an electric | ||||||
| 3 | cooperative as defined in
Section 3.4 of the Electric | ||||||
| 4 | Supplier Act or a telephone or
telecommunications | ||||||
| 5 | cooperative as defined in Section 13-212 of the Public
| ||||||
| 6 | Utilities Act that have remained unclaimed by the person | ||||||
| 7 | appearing on the
records of the cooperative entitled | ||||||
| 8 | thereto for more than 2 years. Such
unclaimed capital | ||||||
| 9 | credits or patronage capital shall not be subject to, or
| ||||||
| 10 | governed by, any other provisions of this Act, but rather | ||||||
| 11 | shall be used by
the cooperative for the benefit of the | ||||||
| 12 | general membership of the cooperative.
| ||||||
| 13 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 14 | (765 ILCS 1025/5) (from Ch. 141, par. 105)
| ||||||
| 15 | Sec. 5.
The provisions of this Act shall not apply to any | ||||||
| 16 | amount held or
owing by a banking organization as agent, or as | ||||||
| 17 | trustee of an express
trust, for the purpose of making payment | ||||||
| 18 | to holders of, or in respect of
stocks, bonds, or other | ||||||
| 19 | securities of a governmental or other public
issuer, or of a | ||||||
| 20 | business association other than a business association
which | ||||||
| 21 | shall have discontinued the conduct of its business, or the | ||||||
| 22 | corporate
existence of which shall have terminated, without the | ||||||
| 23 | right to receive such
amount having passed to a successor or | ||||||
| 24 | successors.
| ||||||
| 25 | As of January 1, 1998, this Section shall not be applicable | ||||||
| |||||||
| |||||||
| 1 | unless
the
Department has commenced, but not finalized, an | ||||||
| 2 | examination of the holder as
of
that date and the property is | ||||||
| 3 | included in a final examination report for the
period covered | ||||||
| 4 | by the examination.
| ||||||
| 5 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 6 | (765 ILCS 1025/6) (from Ch. 141, par. 106)
| ||||||
| 7 | Sec. 6.
All intangible personal property distributable in | ||||||
| 8 | the course of a
voluntary dissolution of a business | ||||||
| 9 | association, banking organization, or
financial organization | ||||||
| 10 | that is unclaimed by the owner within 2 years after the
date | ||||||
| 11 | for
final distribution, is presumed abandoned.
| ||||||
| 12 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 13 | (765 ILCS 1025/7) (from Ch. 141, par. 107)
| ||||||
| 14 | Sec. 7.
All intangible personal property and any income or | ||||||
| 15 | increment
thereon, held in a fiduciary capacity for the benefit | ||||||
| 16 | of another person is
presumed abandoned
unless the owner has, | ||||||
| 17 | within 5 years after it becomes payable or
distributable, | ||||||
| 18 | increased or decreased the principal, accepted payment of
| ||||||
| 19 | principal or income, corresponded in writing concerning the | ||||||
| 20 | property, or
otherwise indicated an interest as evidenced by a | ||||||
| 21 | memorandum on file with
the fiduciary.
| ||||||
| 22 | A fiduciary may deduct any actual cost incurred in | ||||||
| 23 | connection with the
administration of suspense, abeyant, and | ||||||
| 24 | similar accounts arising out of its
fiduciary, stock transfer, | ||||||
| |||||||
| |||||||
| 1 | corporation trust, and securities processing
activities but | ||||||
| 2 | not to exceed 8% of the property remitted.
| ||||||
| 3 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 4 | (765 ILCS 1025/7a) (from Ch. 141, par. 107a)
| ||||||
| 5 | Sec. 7a.
The provisions of this Act shall not apply to an | ||||||
| 6 | active express
trust.
| ||||||
| 7 | As of January 1, 1998, this Section shall not be applicable | ||||||
| 8 | unless
the Department has commenced, but not finalized, an | ||||||
| 9 | examination of the holder
as of that date and the property is | ||||||
| 10 | included in a final examination report for
the period covered | ||||||
| 11 | by the examination.
| ||||||
| 12 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 13 | (765 ILCS 1025/8) (from Ch. 141, par. 108)
| ||||||
| 14 | Sec. 8.
All funds and intangible personal property held for | ||||||
| 15 | the owner by
any court, public authority, or public officer of | ||||||
| 16 | this
State, or a political subdivision thereof, that has | ||||||
| 17 | remained unclaimed by
the owner for more than 5 years is | ||||||
| 18 | presumed abandoned.
This Section does not apply to deposits | ||||||
| 19 | made to municipalities as a
condition for the issuance of a | ||||||
| 20 | building permit.
| ||||||
| 21 | (Source: P.A. 99-577, eff. 1-1-17.)
| ||||||
| 22 | (765 ILCS 1025/8.1) (from Ch. 141, par. 108.1)
| ||||||
| 23 | Sec. 8.1. Property held by governments.
| ||||||
| |||||||
| |||||||
| 1 | (a) All tangible personal property or intangible personal | ||||||
| 2 | property and all
debts owed or entrusted funds or other | ||||||
| 3 | property held by any federal, state or
local government or | ||||||
| 4 | governmental subdivision, agency, entity, officer or
appointee | ||||||
| 5 | thereof shall be presumed abandoned if the property has | ||||||
| 6 | remained
unclaimed for 5 years, except as provided in | ||||||
| 7 | subsection (c).
| ||||||
| 8 | (b) This Section applies to all abandoned property held by | ||||||
| 9 | any federal,
state or local government or governmental | ||||||
| 10 | subdivision, agency, entity, officer
or appointee thereof on | ||||||
| 11 | September 3, 1991 (the effective date of Public Act 87-206) or
| ||||||
| 12 | at any time thereafter, regardless of when the property became | ||||||
| 13 | or becomes
presumptively abandoned.
| ||||||
| 14 | (c) United States savings bonds. | ||||||
| 15 | (1) As used in this subsection, "United States savings | ||||||
| 16 | bond" means property, tangible or intangible, in the form | ||||||
| 17 | of a savings bond issued by the United States Treasury, | ||||||
| 18 | whether in paper, electronic, or paperless form, along with | ||||||
| 19 | all proceeds thereof in the possession of the State | ||||||
| 20 | Treasurer. | ||||||
| 21 | (2) Notwithstanding any provision of this Act to the | ||||||
| 22 | contrary, a United States savings bond subject to this | ||||||
| 23 | Section or held or owing in this State by any person shall | ||||||
| 24 | be presumed abandoned when such bond has remained unclaimed | ||||||
| 25 | and unredeemed for 5 years after its date of final extended | ||||||
| 26 | maturity. | ||||||
| |||||||
| |||||||
| 1 | (3) United States savings bonds that are presumed | ||||||
| 2 | abandoned and unclaimed under paragraph (2) shall escheat | ||||||
| 3 | to the State of Illinois and all property rights and legal | ||||||
| 4 | title to and ownership of the United States savings bonds, | ||||||
| 5 | or proceeds from the bonds, including all rights, powers, | ||||||
| 6 | and privileges of survivorship of any owner, co-owner, or | ||||||
| 7 | beneficiary, shall vest solely in the State according to | ||||||
| 8 | the procedure set forth in paragraphs (4) through (6). | ||||||
| 9 | (4) Within 180 days after a United States savings bond | ||||||
| 10 | has been presumed abandoned, in the absence of a claim | ||||||
| 11 | having been filed with the State Treasurer for the savings | ||||||
| 12 | bond, the State Treasurer shall commence a civil action in | ||||||
| 13 | the Circuit Court of Sangamon County for a determination | ||||||
| 14 | that the United States savings bond has escheated to the | ||||||
| 15 | State. The State Treasurer may postpone the bringing of the | ||||||
| 16 | action until sufficient United States savings bonds have | ||||||
| 17 | accumulated in the State Treasurer's custody to justify the | ||||||
| 18 | expense of the proceedings. | ||||||
| 19 | (5) The State Treasurer shall make service by | ||||||
| 20 | publication in the civil action in accordance with Sections | ||||||
| 21 | 2-206 and 2-207 of the Code of Civil Procedure, which shall | ||||||
| 22 | include the filing with the Circuit Court of Sangamon | ||||||
| 23 | County of the affidavit required in Section 2-206 of that | ||||||
| 24 | Code by an employee of the State Treasurer with personal | ||||||
| 25 | knowledge of the efforts made to contact the owners of | ||||||
| 26 | United States savings bonds presumed abandoned under this | ||||||
| |||||||
| |||||||
| 1 | Section. In addition to the diligent inquiries made | ||||||
| 2 | pursuant to Section 2-206 of the Code of Civil Procedure, | ||||||
| 3 | the State Treasurer may also utilize additional | ||||||
| 4 | discretionary means to attempt to provide notice to persons | ||||||
| 5 | who may own a United States savings bond registered to a | ||||||
| 6 | person with a last known address in the State of Illinois | ||||||
| 7 | subject to a civil action pursuant to paragraph (4). | ||||||
| 8 | (6) The owner of a United States savings bond | ||||||
| 9 | registered to a person with a last known address in the | ||||||
| 10 | State of Illinois subject to a civil action pursuant to | ||||||
| 11 | paragraph (4) may file a claim for such United States | ||||||
| 12 | savings bond with either the State Treasurer or by filing a | ||||||
| 13 | claim in the civil action in the Circuit Court of Sangamon | ||||||
| 14 | County in which the savings bond registered to that person | ||||||
| 15 | is at issue prior to the entry of a final judgment by the | ||||||
| 16 | Circuit Court pursuant to this subsection, and unless the | ||||||
| 17 | Circuit Court determines that such United States savings | ||||||
| 18 | bond is not owned by the claimant, then such United States | ||||||
| 19 | savings bond shall no longer be presumed abandoned. If no | ||||||
| 20 | person files a claim or appears at the hearing to | ||||||
| 21 | substantiate a disputed claim or if the court determines | ||||||
| 22 | that a claimant is not entitled to the property claimed by | ||||||
| 23 | the claimant, then the court, if satisfied by evidence that | ||||||
| 24 | the State Treasurer has substantially complied with the | ||||||
| 25 | laws of this State, shall enter a judgment that the United | ||||||
| 26 | States savings bonds have escheated to this State, and all | ||||||
| |||||||
| |||||||
| 1 | property rights and legal title to and ownership of such | ||||||
| 2 | United States savings bonds or proceeds from such bonds, | ||||||
| 3 | including all rights, powers, and privileges of | ||||||
| 4 | survivorship of any owner, co-owner, or beneficiary, shall | ||||||
| 5 | vest in this State. | ||||||
| 6 | (7) The State Treasurer shall redeem from the Bureau of | ||||||
| 7 | the Fiscal Service of the United States Treasury the United | ||||||
| 8 | States savings bonds escheated to the State and deposit the | ||||||
| 9 | proceeds from the redemption of United States savings bonds | ||||||
| 10 | into the Unclaimed Property Trust Fund. | ||||||
| 11 | (8) Any person making a claim for the United States | ||||||
| 12 | savings bonds escheated to the State under this subsection, | ||||||
| 13 | or for the proceeds from such bonds, may file a claim with | ||||||
| 14 | the State Treasurer. Upon providing sufficient proof of the | ||||||
| 15 | validity of such person's claim, the State Treasurer may, | ||||||
| 16 | in his or her sole discretion, pay such claim. If payment | ||||||
| 17 | has been made to any claimant, no action thereafter shall | ||||||
| 18 | be maintained by any other claimant against the State or | ||||||
| 19 | any officer thereof for or on account of such funds. | ||||||
| 20 | (Source: P.A. 99-556, eff. 1-1-17; 99-577, eff. 1-1-17; | ||||||
| 21 | 100-201, eff. 8-18-17.)
| ||||||
| 22 | (765 ILCS 1025/8.2) (from Ch. 141, par. 108.2)
| ||||||
| 23 | Sec. 8.2. (Repealed). | ||||||
| 24 | (Source: P.A. 87-1135. Repealed by P.A. 89-567, eff. 7-26-96.)
| ||||||
| |||||||
| |||||||
| 1 | (765 ILCS 1025/9) (from Ch. 141, par. 109)
| ||||||
| 2 | Sec. 9.
All personal property, not otherwise covered by | ||||||
| 3 | this
Act, including any income or increment thereon that the | ||||||
| 4 | owner would be
entitled to and deducting any lawful charges, | ||||||
| 5 | that has remained
unclaimed by the owner for more than 5 years | ||||||
| 6 | is presumed abandoned. Before
reporting and delivering | ||||||
| 7 | property
as required under this Act, a business association may | ||||||
| 8 | deduct from the amount
of otherwise reportable intangible | ||||||
| 9 | personal property the economic loss suffered
by it in | ||||||
| 10 | connection with that intangible personal property arising from
| ||||||
| 11 | transactions involving the sale of tangible personal property | ||||||
| 12 | at retail. Except
as provided in Section 10.5, this provision | ||||||
| 13 | shall not apply to
personal property held prior to October 1, | ||||||
| 14 | 1968 by business associations.
Property remitted to the State | ||||||
| 15 | pursuant to this Act, prior to the effective
date of this | ||||||
| 16 | amendatory Act of 1982, shall not be affected by this | ||||||
| 17 | amendatory
Act of 1982.
| ||||||
| 18 | (Source: P.A. 90-167, eff. 7-23-97.)
| ||||||
| 19 | (765 ILCS 1025/10) (from Ch. 141, par. 110)
| ||||||
| 20 | Sec. 10.
If specific property which is subject to the | ||||||
| 21 | provisions of
Sections 2, 5, 6, 7 and 9 is held for or owed or | ||||||
| 22 | distributable to an
owner whose last known address is in | ||||||
| 23 | another state by a holder who is
subject to the jurisdiction of | ||||||
| 24 | that state, the specific property is not
presumed abandoned in | ||||||
| 25 | this State and subject to this Act if:
| ||||||
| |||||||
| |||||||
| 1 | (a) It may be claimed as abandoned or escheated under | ||||||
| 2 | the laws of such
other state; and
| ||||||
| 3 | (b) The laws of such other state make reciprocal | ||||||
| 4 | provision that similar
specific property is not presumed | ||||||
| 5 | abandoned or escheatable by such other
state when held for | ||||||
| 6 | or owed or distributable to an owner whose last known
| ||||||
| 7 | address is within this State by a holder who is subject to | ||||||
| 8 | the jurisdiction
of this State.
| ||||||
| 9 | (Source: Laws 1963, p. 1805.)
| ||||||
| 10 | (765 ILCS 1025/10.5)
| ||||||
| 11 | Sec. 10.5. Nonapplicability of Act.
| ||||||
| 12 | (a) Unless the personal property was identified in a
final | ||||||
| 13 | examination report by the Director of Financial Institutions | ||||||
| 14 | issued
pursuant to a duly authorized
examination and the final | ||||||
| 15 | examination report was received by the holder on or
before May | ||||||
| 16 | 1, 1993, this Act does not apply to (i) travelers checks | ||||||
| 17 | reportable
as unclaimed property before July 1, 1973, (ii) | ||||||
| 18 | funds held by any federal,
state, or local government or | ||||||
| 19 | governmental subdivision, agency, entity,
officer, or | ||||||
| 20 | appointee thereof reportable as unclaimed property before July | ||||||
| 21 | 1,
1981, or (iii) any other personal property reportable as
| ||||||
| 22 | unclaimed property before July 1, 1985, based upon the | ||||||
| 23 | presumptive abandonment
period in effect on that date.
| ||||||
| 24 | (b) For reports required to be filed after December 31, | ||||||
| 25 | 1993, this Act does
not apply to any reportable personal | ||||||
| |||||||
| |||||||
| 1 | property held prior to the period required
for presumptive | ||||||
| 2 | abandonment of the property plus the 9 years immediately
| ||||||
| 3 | preceding the beginning of that period.
| ||||||
| 4 | (c) Subsections (a) and (b) do not apply to property held | ||||||
| 5 | by a trust
division or trust department or by a trust company, | ||||||
| 6 | or affiliate of any of the
foregoing that provides nondealer | ||||||
| 7 | corporate custodial services for securities
or securities | ||||||
| 8 | transactions, organized under the laws of
this or another state | ||||||
| 9 | or the United States.
| ||||||
| 10 | As of January 1, 1998, this subsection shall not be | ||||||
| 11 | applicable
unless the Department of Financial Institutions has | ||||||
| 12 | commenced, but
not finalized, an examination of the holder as | ||||||
| 13 | of
that date and the property is included in a final | ||||||
| 14 | examination report for the
period covered by the examination.
| ||||||
| 15 | (d) Subsections (a) and (b) do not apply to property held | ||||||
| 16 | by a holder who
files a fraudulent report or fails to file a | ||||||
| 17 | report.
| ||||||
| 18 | (e) Subsections (a) and (b) do not apply if, as a result of | ||||||
| 19 | their
application, another state would have a legal right to | ||||||
| 20 | delivery of the property
and such other state has commenced | ||||||
| 21 | proceedings with respect to the property.
| ||||||
| 22 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 23 | (765 ILCS 1025/10.6)
| ||||||
| 24 | Sec. 10.6. Gift certificates and gift cards.
| ||||||
| 25 | (a) This Act applies to a gift certificate or gift card | ||||||
| |||||||
| |||||||
| 1 | only if:
| ||||||
| 2 | (i) the gift certificate or gift card contains or has | ||||||
| 3 | language indicating there is an expiration date,
| ||||||
| 4 | expiration period or language indicating that there is any | ||||||
| 5 | type of post-sale charge or fee including but not limited | ||||||
| 6 | to service charges, dormancy fees, account maintenance | ||||||
| 7 | fees, cash-out fees, replacement card fees, and activation | ||||||
| 8 | or reactivation charges; and
| ||||||
| 9 | (ii) none of the exceptions in this Section apply.
| ||||||
| 10 | (b) This Act does not apply to a gift certificate or gift | ||||||
| 11 | card that
contains or has language indicating that there is an | ||||||
| 12 | expiration date or expiration period, or any type of post-sale | ||||||
| 13 | charge or fee including but not limited to service charges, | ||||||
| 14 | dormancy fees, account maintenance fees, cash-out fees, | ||||||
| 15 | replacement card fees, and activation or reactivation charges
| ||||||
| 16 | if:
| ||||||
| 17 | (i) the gift certificate or gift card was issued before | ||||||
| 18 | the effective
date of this amendatory Act of the 93rd
| ||||||
| 19 | General Assembly; and
| ||||||
| 20 | (ii) it is the policy and practice of the issuer of the | ||||||
| 21 | gift
certificate or gift card to honor the gift certificate | ||||||
| 22 | or gift card after its
expiration date or the end of its | ||||||
| 23 | expiration period and it is the policy and practice of the | ||||||
| 24 | issuer of the gift certificate or gift card to eliminate | ||||||
| 25 | all post-sale charges and fees, and the issuer posts
| ||||||
| 26 | written notice of the policy and practice at locations at | ||||||
| |||||||
| |||||||
| 1 | which the
issuer sells gift certificates or gift cards. The | ||||||
| 2 | written notice shall be
an original or a copy of a notice | ||||||
| 3 | that the State Treasurer shall produce
and provide to | ||||||
| 4 | issuers free of charge.
| ||||||
| 5 | (c) Nothing in this Section applies to a gift certificate | ||||||
| 6 | or gift card if
the value of the gift certificate or gift card | ||||||
| 7 | was reported and remitted under
this Act before the effective | ||||||
| 8 | date of this amendatory Act of the 93rd General
Assembly.
| ||||||
| 9 | (Source: P.A. 92-487, eff. 8-23-01; 93-945, eff. 1-1-05.)
| ||||||
| 10 | (765 ILCS 1025/11) (from Ch. 141, par. 111)
| ||||||
| 11 | Sec. 11. Report of holder.
| ||||||
| 12 | (a) Except as otherwise provided in
subsection (c) of | ||||||
| 13 | Section
4, every person holding funds or other property, | ||||||
| 14 | tangible or intangible,
presumed abandoned under this Act shall | ||||||
| 15 | report and remit all abandoned property
specified in the report | ||||||
| 16 | to the State Treasurer with respect to the property as
| ||||||
| 17 | hereinafter provided. The State Treasurer may exempt any | ||||||
| 18 | businesses from the
reporting requirement if he deems such | ||||||
| 19 | businesses unlikely to be holding
unclaimed property.
| ||||||
| 20 | (b) The information shall be obtained in one or more | ||||||
| 21 | reports as required
by the State Treasurer. The information | ||||||
| 22 | shall be verified and shall include:
| ||||||
| 23 | (1) the name, social security or federal tax | ||||||
| 24 | identification number,
if known, and last known address, | ||||||
| 25 | including zip code, of each
person appearing from the | ||||||
| |||||||
| |||||||
| 1 | records of the holder to be the owner of any
property of | ||||||
| 2 | the value of $5 or more presumed abandoned under this Act;
| ||||||
| 3 | (2) in case of unclaimed funds of life insurance | ||||||
| 4 | corporations the
full name of the insured and any | ||||||
| 5 | beneficiary or annuitant and the
last known address | ||||||
| 6 | according to the life insurance corporation's records;
| ||||||
| 7 | (3) the date when the property became payable, | ||||||
| 8 | demandable, or
returnable, and the date of the last | ||||||
| 9 | transaction with the owner with
respect to the property; | ||||||
| 10 | and
| ||||||
| 11 | (4) other information which the State Treasurer | ||||||
| 12 | prescribes by rule as
necessary for the administration of | ||||||
| 13 | this Act.
| ||||||
| 14 | (c) If the person holding property presumed abandoned is a | ||||||
| 15 | successor
to other persons who previously held the property for | ||||||
| 16 | the owner, or if
the holder has changed his name while holding | ||||||
| 17 | the property, he shall
file with his report all prior known | ||||||
| 18 | names and addresses of each holder
of the property.
| ||||||
| 19 | (d) The report and remittance of the property specified in | ||||||
| 20 | the
report shall be filed by banking organizations, financial | ||||||
| 21 | organizations,
insurance companies other than life insurance | ||||||
| 22 | corporations, and governmental
entities before November 1 of | ||||||
| 23 | each year as of June 30 next preceding.
The report and | ||||||
| 24 | remittance of the property specified in the report shall be
| ||||||
| 25 | filed by business associations, utilities, and life insurance | ||||||
| 26 | corporations
before May 1 of each year as of December 31 next | ||||||
| |||||||
| |||||||
| 1 | preceding. The Director may
postpone the reporting date upon | ||||||
| 2 | written request by any person required to file
a report. The | ||||||
| 3 | report and remittance of the property specified in the report | ||||||
| 4 | for property subject to subsection (a) of Section 3a of this | ||||||
| 5 | Act shall be filed before a date established by the State | ||||||
| 6 | Treasurer that is on or after the later of: (i) 30 days after | ||||||
| 7 | the effective date of this amendatory Act of the 94th General | ||||||
| 8 | Assembly; or (ii) November 1, 2005.
| ||||||
| 9 | (d-5) Notwithstanding the foregoing, currency exchanges | ||||||
| 10 | shall be required
to report and remit property specified in the | ||||||
| 11 | report within 30 days after the
conclusion of its annual | ||||||
| 12 | examination by the Department of Financial
Institutions.
As | ||||||
| 13 | part of the examination of a currency exchange, the Department | ||||||
| 14 | of Financial
Institutions shall instruct the currency exchange | ||||||
| 15 | to submit a complete
unclaimed
property report using the State | ||||||
| 16 | Treasurer's formatted diskette reporting
program or an | ||||||
| 17 | alternative reporting format approved by the State Treasurer.
| ||||||
| 18 | The Department of Financial Institutions shall provide the | ||||||
| 19 | State Treasurer with
an accounting of the money orders located | ||||||
| 20 | in the course of the annual
examination including, where | ||||||
| 21 | available, the amount of service fees deducted and
the date of | ||||||
| 22 | the
conclusion of the examination.
| ||||||
| 23 | (e) Before filing the annual report, the holder of property | ||||||
| 24 | presumed
abandoned under this Act shall communicate with the | ||||||
| 25 | owner at his last known
address if any address is known to the | ||||||
| 26 | holder, setting forth the provisions
hereof necessary to occur | ||||||
| |||||||
| |||||||
| 1 | in order to prevent abandonment from being presumed.
If the | ||||||
| 2 | holder has not communicated with the owner at his last known | ||||||
| 3 | address at
least 120 days before the deadline for filing the | ||||||
| 4 | annual report, the holder
shall mail, at least 60 days before | ||||||
| 5 | that deadline, a letter by first class mail
to the owner at his | ||||||
| 6 | last known address unless any address
is shown to be | ||||||
| 7 | inaccurate, setting forth the provisions hereof
necessary to | ||||||
| 8 | prevent abandonment from being presumed.
| ||||||
| 9 | (f) Verification, if made by a partnership, shall be | ||||||
| 10 | executed by a
partner; if made by an unincorporated association | ||||||
| 11 | or private
corporation, by an officer; and if made by a public | ||||||
| 12 | corporation, by its
chief fiscal officer.
| ||||||
| 13 | (g) Any person who has possession of property which he has | ||||||
| 14 | reason to
believe will be reportable in the future as unclaimed | ||||||
| 15 | property, may
report and deliver it prior to the date required | ||||||
| 16 | for such reporting in
accordance with this Section and is then | ||||||
| 17 | relieved of responsibility as
provided in Section 14.
| ||||||
| 18 | (h) (1) Records pertaining to presumptively abandoned | ||||||
| 19 | property held by a
trust
division or trust department or by a | ||||||
| 20 | trust company, or affiliate of any of the
foregoing that | ||||||
| 21 | provides nondealer corporate custodial services for securities
| ||||||
| 22 | or securities transactions, organized under the laws of this or | ||||||
| 23 | another state
or the United States shall be retained until the | ||||||
| 24 | property is delivered to the
State Treasurer.
| ||||||
| 25 | As of January 1, 1998, this subdivision (h)(1) shall not be | ||||||
| 26 | applicable
unless the Department of Financial Institutions has | ||||||
| |||||||
| |||||||
| 1 | commenced, but
not finalized, an examination of the
holder as | ||||||
| 2 | of that date and the property is included in a final | ||||||
| 3 | examination
report for the period covered by the examination.
| ||||||
| 4 | (2) In the case of all other holders commencing on the | ||||||
| 5 | effective date of
this amendatory Act of 1993, property records | ||||||
| 6 | for the period required for
presumptive abandonment plus the 9 | ||||||
| 7 | years immediately preceding the beginning of
that period shall | ||||||
| 8 | be retained for 5 years after the property was reportable.
| ||||||
| 9 | (i) The State Treasurer may promulgate rules establishing
| ||||||
| 10 | the format and media to be used by a holder in submitting | ||||||
| 11 | reports required
under this Act.
| ||||||
| 12 | (j) Other than the Notice to Owners required by Section 12 | ||||||
| 13 | and other
discretionary means employed by the State Treasurer | ||||||
| 14 | for notifying owners of the
existence of abandoned property, | ||||||
| 15 | the State Treasurer shall not disclose any
information provided | ||||||
| 16 | in reports filed with the State Treasurer or any
information | ||||||
| 17 | obtained in the course of an examination by the State Treasurer | ||||||
| 18 | to
any person other than governmental agencies for the purposes | ||||||
| 19 | of returning
abandoned property to its owners or to those | ||||||
| 20 | individuals who appear to be the
owner of the property or | ||||||
| 21 | otherwise have a valid claim to the property, unless
written | ||||||
| 22 | consent from the person entitled to the property is obtained by | ||||||
| 23 | the
State Treasurer.
| ||||||
| 24 | (Source: P.A. 98-495, eff. 8-16-13.)
| ||||||
| 25 | (765 ILCS 1025/11.5)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 11.5. Estimation techniques and record retention.
| ||||||
| 2 | (a) If a holder has failed to retain records as required by | ||||||
| 3 | this Act or if
the records retained are shown to be | ||||||
| 4 | insufficient to conduct and conclude
an examination, the Office | ||||||
| 5 | of the State Treasurer may use
estimation techniques that | ||||||
| 6 | conform to
either Generally Accepted Auditing Standards or | ||||||
| 7 | Generally Accepted Accounting
Principles to determine the | ||||||
| 8 | amount of unclaimed property. In the conduct of an
examination, | ||||||
| 9 | the State shall not
request of a holder any records that
relate | ||||||
| 10 | only to property that under subsection (a) or (b) of Section | ||||||
| 11 | 10.5 is
not subject to this Act.
| ||||||
| 12 | (b) Within 15 business days of the receipt of a final | ||||||
| 13 | examination report, a
holder may request a hearing to contest | ||||||
| 14 | the use or validity of estimation
techniques. The examination | ||||||
| 15 | shall become final upon the failure of the holder
to request a | ||||||
| 16 | hearing as provided in this Section. If a hearing is held, the
| ||||||
| 17 | State Treasurer shall issue an order approving or disapproving
| ||||||
| 18 | the use or validity of the estimation techniques. The order | ||||||
| 19 | shall be a final
order under the Administrative Review Law.
| ||||||
| 20 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 21 | (765 ILCS 1025/12) (from Ch. 141, par. 112)
| ||||||
| 22 | Sec. 12. Notice to owners.
| ||||||
| 23 | (a) For property reportable by May 1, as identified by
| ||||||
| 24 | Section 11, the State Treasurer shall cause notice to be | ||||||
| 25 | published once in an
English language newspaper of general | ||||||
| |||||||
| |||||||
| 1 | circulation in the county in this State
in which is located the | ||||||
| 2 | last known address of any person to be named in the
notice on | ||||||
| 3 | or before November 1 of the same year. For property reportable
| ||||||
| 4 | by November 1, as identified by Section 11, the State Treasurer | ||||||
| 5 | shall cause
notice to be published once in an English language | ||||||
| 6 | newspaper of general
circulation in the county in this State in | ||||||
| 7 | which is located the last known
address of any person named in | ||||||
| 8 | the notice on or before May 1 of the next
year. If no address
is | ||||||
| 9 | listed or if the address is outside this State, the
notice | ||||||
| 10 | shall be published in the county in which the holder of the | ||||||
| 11 | abandoned
property has his principal place of business within | ||||||
| 12 | this State. However, if an
out-of-state address is in a state | ||||||
| 13 | that is not a party to a reciprocal
agreement with this State | ||||||
| 14 | concerning abandoned property, the notice may be
published in | ||||||
| 15 | the Illinois Register. The names of owners that are identified | ||||||
| 16 | and contacted directly by the State Treasurer do not have to be | ||||||
| 17 | published as described in this Section.
| ||||||
| 18 | (b) The published notice shall be entitled "Notice of Names | ||||||
| 19 | of Persons
Appearing to be Owners of Abandoned Property", and | ||||||
| 20 | shall contain:
| ||||||
| 21 | (1) The names in alphabetical order and last known | ||||||
| 22 | addresses, if any, of
persons listed in the report and | ||||||
| 23 | entitled to notice within the county as
hereinbefore | ||||||
| 24 | specified.
| ||||||
| 25 | (2) A statement that information concerning the amount | ||||||
| 26 | or description of
the property and the name and address of | ||||||
| |||||||
| |||||||
| 1 | the holder may be obtained by any
persons possessing an | ||||||
| 2 | interest in the property by addressing an inquiry to
the | ||||||
| 3 | State Treasurer.
| ||||||
| 4 | (3) A statement that the abandoned property has been | ||||||
| 5 | placed in the
custody of the State Treasurer to whom all | ||||||
| 6 | further claims must
thereafter be directed.
| ||||||
| 7 | (c) The State Treasurer is not required to publish in such | ||||||
| 8 | notice any item
of less than $100 or any item for which the | ||||||
| 9 | address of the last known owner is
in a state that has a | ||||||
| 10 | reciprocal agreement with this State concerning
abandoned | ||||||
| 11 | property unless he deems such publication to be in the public
| ||||||
| 12 | interest.
| ||||||
| 13 | (Source: P.A. 93-531, eff. 8-14-03; 94-686, eff. 11-2-05.)
| ||||||
| 14 | (765 ILCS 1025/13) (from Ch. 141, par. 113)
| ||||||
| 15 | Sec. 13.
Every person who has filed a report as provided by | ||||||
| 16 | Section 11
shall deliver to the State Treasurer all abandoned | ||||||
| 17 | property specified in the
annual report on the same date that | ||||||
| 18 | the annual report is filed. Costs for
communicating with owners | ||||||
| 19 | by mail as required by subsection (e) of Section 11
may be | ||||||
| 20 | deducted from the property specified in the report. Any such | ||||||
| 21 | person, who
pursuant to a statutory requirement, filed a bond | ||||||
| 22 | or bonds pertaining to such
abandoned property with the State | ||||||
| 23 | Treasurer or his predecessor, may also deduct
an amount | ||||||
| 24 | equivalent to that part of the bond premium attributable to | ||||||
| 25 | such
abandoned property.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 2 | (765 ILCS 1025/14) (from Ch. 141, par. 114)
| ||||||
| 3 | Sec. 14.
Upon the payment or delivery of abandoned property | ||||||
| 4 | to the
State Treasurer, the state shall assume custody and | ||||||
| 5 | shall be responsible for
the safekeeping thereof. Any person | ||||||
| 6 | who pays or delivers abandoned property to
the State Treasurer | ||||||
| 7 | under this Act is relieved of all liability to the extent
of | ||||||
| 8 | the value of the property so paid or delivered for any claim | ||||||
| 9 | which then
exists or which thereafter may arise or be made in | ||||||
| 10 | respect to the property.
| ||||||
| 11 | In the event legal proceedings are instituted by any other | ||||||
| 12 | state or
states in any state or federal court with respect to | ||||||
| 13 | unclaimed funds or
abandoned property previously paid or | ||||||
| 14 | delivered to the State Treasurer, the
holder shall give written | ||||||
| 15 | notification to the State Treasurer and the Attorney
General of | ||||||
| 16 | this state of such proceedings within 10 days after service of
| ||||||
| 17 | process, or in the alternative at least 10 days before the | ||||||
| 18 | return date or date
on which an answer or similar pleading is | ||||||
| 19 | due (or any extension thereof secured
by the holder). The | ||||||
| 20 | Attorney General may take such action as he deems
necessary or | ||||||
| 21 | expedient to protect the interests of the State of Illinois.
| ||||||
| 22 | The Attorney General by written notice prior to the return date | ||||||
| 23 | or date on
which an answer or similar pleading is due (or any | ||||||
| 24 | extension thereof
secured by the holder), but in any event in | ||||||
| 25 | reasonably sufficient time for
the holder to comply with the | ||||||
| |||||||
| |||||||
| 1 | directions received, shall either direct the
holder actively to | ||||||
| 2 | defend in such proceedings or that no defense need be
entered | ||||||
| 3 | in such proceedings. If a direction is received from the | ||||||
| 4 | Attorney
General that the holder need not make a defense, such | ||||||
| 5 | shall not preclude
the holder from entering a defense in its | ||||||
| 6 | own name if it should so choose.
However, any defense made by | ||||||
| 7 | the holder on its own initiative shall not
entitle the holder | ||||||
| 8 | to reimbursement for legal fees, costs and other
expenses as is | ||||||
| 9 | hereinafter provided in respect to defenses made pursuant to
| ||||||
| 10 | the directions of the Attorney General. If, after the holder | ||||||
| 11 | has actively
defended in such proceedings pursuant to a | ||||||
| 12 | direction of the Attorney
General, or has been notified in | ||||||
| 13 | writing by the Attorney General that no
defense need be made | ||||||
| 14 | with respect to such funds, a judgment is entered
against the | ||||||
| 15 | holder for any amount paid to the State Treasurer
under this | ||||||
| 16 | Act, the State Treasurer shall, upon being furnished with proof | ||||||
| 17 | of
payment in satisfaction of such judgment, reimburse the | ||||||
| 18 | holder the amount so
paid. The State Treasurer shall also | ||||||
| 19 | reimburse the holder for any legal fees,
costs and other | ||||||
| 20 | directly related expenses incurred in legal proceedings
| ||||||
| 21 | undertaken pursuant to the direction of the Attorney General.
| ||||||
| 22 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 23 | (765 ILCS 1025/15) (from Ch. 141, par. 115)
| ||||||
| 24 | Sec. 15.
When property is paid or delivered to the State | ||||||
| 25 | Treasurer under this
Act, the owner is not entitled to receive | ||||||
| |||||||
| |||||||
| 1 | income or other increments accruing
thereafter, except that | ||||||
| 2 | income accruing on unliquidated stock and mutual funds
after | ||||||
| 3 | July 1, 1993, may be paid to the owner.
| ||||||
| 4 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 5 | (765 ILCS 1025/16) (from Ch. 141, par. 116)
| ||||||
| 6 | Sec. 16.
The expiration of any period of time specified by | ||||||
| 7 | statute or court
order, during which an action or proceeding | ||||||
| 8 | may be commenced or enforced to
obtain payment of a claim for | ||||||
| 9 | money or recovery of property, shall not
prevent the money or | ||||||
| 10 | property from being presumed abandoned property, nor
affect any | ||||||
| 11 | duty to file a report required by this Act or to pay or deliver
| ||||||
| 12 | abandoned property to the State Treasurer.
| ||||||
| 13 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 14 | (765 ILCS 1025/17) (from Ch. 141, par. 117)
| ||||||
| 15 | Sec. 17. (a) All abandoned
property, other than money and | ||||||
| 16 | that property
exempted by paragraphs (1), (2), (3), (4), (5), | ||||||
| 17 | and (6) of this subsection,
delivered to the
State Treasurer | ||||||
| 18 | under this Act shall be sold within a reasonable time to the
| ||||||
| 19 | highest bidder at public sale in whatever city in the State | ||||||
| 20 | affords in his or
her judgment the most favorable market for | ||||||
| 21 | the property involved. The State
Treasurer may decline the | ||||||
| 22 | highest bid and reoffer the property for sale if he
or she | ||||||
| 23 | considers the price bid insufficient.
The State Treasurer may | ||||||
| 24 | group items for auction as "box lots" if the value
of the | ||||||
| |||||||
| |||||||
| 1 | individual items makes it impracticable to sell the items
| ||||||
| 2 | individually.
He or she need not offer any
property for sale, | ||||||
| 3 | and may destroy or otherwise dispose of the property, if, in
| ||||||
| 4 | his or her opinion, the probable cost of sale exceeds the value | ||||||
| 5 | of the
property. Securities or commodities received by the | ||||||
| 6 | Office of the State
Treasurer may be sold by the State | ||||||
| 7 | Treasurer through a broker or sales agent
suitable for the sale | ||||||
| 8 | of the type of securities or commodities being sold.
| ||||||
| 9 | (1) Property which the State Treasurer determines may | ||||||
| 10 | have historical
value may be, at his or her discretion, | ||||||
| 11 | loaned to a recognized exhibitor in the
United States where | ||||||
| 12 | it will be kept until such time as the State Treasurer
| ||||||
| 13 | orders it to be returned to his or her possession.
| ||||||
| 14 | (2) Property returned to the State Treasurer shall be | ||||||
| 15 | released to the
rightful owner or otherwise disposed of in | ||||||
| 16 | accordance with this Act. The State
Treasurer shall keep | ||||||
| 17 | identifying records of the property so loaned, the name of
| ||||||
| 18 | rightful owner and the owner's last known address, if | ||||||
| 19 | available.
| ||||||
| 20 | (3) The Treasurer, in cooperation with the Department | ||||||
| 21 | of State Police,
shall
develop a procedure to determine | ||||||
| 22 | whether a firearm delivered
to the Treasurer under this Act | ||||||
| 23 | has been stolen or used in the commission of a
crime.
The | ||||||
| 24 | Department of State Police shall determine
the appropriate | ||||||
| 25 | disposition of a firearm that has been stolen or used in | ||||||
| 26 | the
commission of a crime. The Treasurer shall attempt to | ||||||
| |||||||
| |||||||
| 1 | return a firearm
that has not been stolen or used in the | ||||||
| 2 | commission of a crime to the rightful
owner,
provided that | ||||||
| 3 | the owner may lawfully possess the firearm as determined by | ||||||
| 4 | the
Department of State Police.
| ||||||
| 5 | If the Treasurer is unable to return a firearm to its | ||||||
| 6 | owner, the
Treasurer
shall transfer custody of the firearm | ||||||
| 7 | to the Department of State
Police. Legal title to a firearm | ||||||
| 8 | transferred to the Department of State Police
under this | ||||||
| 9 | paragraph (3) is vested in the Department of
State Police | ||||||
| 10 | by operation of law:
| ||||||
| 11 | (A) if the Treasurer cannot locate the owner of the | ||||||
| 12 | firearm;
| ||||||
| 13 | (B) if the owner of the firearm may not lawfully | ||||||
| 14 | possess the firearm;
| ||||||
| 15 | (C) if the owner does not respond to notice | ||||||
| 16 | published under Section 12
of
this Act; or
| ||||||
| 17 | (D) if the owner responds to notice published under | ||||||
| 18 | Section 12 and
states
that
he or she no longer claims | ||||||
| 19 | an interest in the
firearm.
| ||||||
| 20 | With respect to a firearm whose title is transferred to | ||||||
| 21 | the Department of
State
Police under this paragraph (3), | ||||||
| 22 | that Department
may:
| ||||||
| 23 | (i) retain the firearm for use by the crime | ||||||
| 24 | laboratory system, for
training
purposes, or for any | ||||||
| 25 | other application as deemed
appropriate by the | ||||||
| 26 | Department;
| ||||||
| |||||||
| |||||||
| 1 | (ii) transfer the firearm to the Illinois State | ||||||
| 2 | Museum if the firearm
has
historical
value; or
| ||||||
| 3 | (iii) destroy the firearm if it is not retained | ||||||
| 4 | pursuant to
subparagraph
(i)
or transferred
pursuant | ||||||
| 5 | to subparagraph (ii).
| ||||||
| 6 | (4) If human remains are delivered to the Treasurer | ||||||
| 7 | under this Act, the Treasurer shall deliver those human | ||||||
| 8 | remains to the coroner of the county in which the human | ||||||
| 9 | remains were abandoned for disposition under Section | ||||||
| 10 | 3-3034 of the Counties Code. The only human remains that | ||||||
| 11 | may be delivered to the Treasurer under this Act and that | ||||||
| 12 | the Treasurer may receive are those that are reported and | ||||||
| 13 | delivered as contents of a safe deposit box.
| ||||||
| 14 | (5) If medals awarded to U.S. military personnel are | ||||||
| 15 | delivered to the Treasurer under this Act, the Treasurer | ||||||
| 16 | shall not offer those medals for sale or at public auction. | ||||||
| 17 | The only medals that may be delivered to the Treasurer | ||||||
| 18 | under this Act and that the Treasurer may receive are those | ||||||
| 19 | that are reported and delivered as contents of a safe | ||||||
| 20 | deposit box. Medals shall only be returned to the owner of | ||||||
| 21 | the safe deposit box containing the medals or the heirs of | ||||||
| 22 | that owner. This paragraph (5) may be referred to as | ||||||
| 23 | Operation Search and Restore. | ||||||
| 24 | (6) Property that may have been used in the commission | ||||||
| 25 | of a crime or that may assist in the investigation of a | ||||||
| 26 | crime, as determined after consulting standards developed | ||||||
| |||||||
| |||||||
| 1 | by the Department of State Police, shall be delivered to | ||||||
| 2 | the Department of State Police or other appropriate law | ||||||
| 3 | enforcement authority to allow law enforcement to | ||||||
| 4 | determine whether a criminal investigation should take | ||||||
| 5 | place. Any such property delivered to a law enforcement | ||||||
| 6 | authority shall be held in accordance with existing | ||||||
| 7 | statutes and rules related to the gathering, retention, and | ||||||
| 8 | release of evidence. | ||||||
| 9 | (b) Any sale held under this Section, except a sale of | ||||||
| 10 | securities or
commodities, shall be preceded by a single | ||||||
| 11 | publication of notice thereof, at
least 3 weeks in advance of | ||||||
| 12 | sale in an English language newspaper of general
circulation in | ||||||
| 13 | the county where the property is to be sold.
When property | ||||||
| 14 | fails to sell and is offered again at a subsequent sale, no
| ||||||
| 15 | additional notice is required for the subsequent sale.
| ||||||
| 16 | (c) The purchaser at any sale conducted by the State | ||||||
| 17 | Treasurer pursuant to
this Act shall receive title to the | ||||||
| 18 | property purchased, free from all claims of
the owner or prior | ||||||
| 19 | holder thereof and of all persons claiming through or under
| ||||||
| 20 | them. The State Treasurer shall execute all documents necessary | ||||||
| 21 | to complete the
transfer of title.
| ||||||
| 22 | (d) The Office of the State Treasurer is not liable for any | ||||||
| 23 | reduction in the
value of property caused by changing market | ||||||
| 24 | conditions.
| ||||||
| 25 | (Source: P.A. 95-829, eff. 8-14-08; 96-440, eff. 1-1-10.)
| ||||||
| |||||||
| |||||||
| 1 | (765 ILCS 1025/18) (from Ch. 141, par. 118)
| ||||||
| 2 | Sec. 18. Deposit of funds received under the Act.
| ||||||
| 3 | (a) The State Treasurer shall retain all funds received | ||||||
| 4 | under this Act,
including the proceeds from
the sale of | ||||||
| 5 | abandoned property under Section 17, in a trust fund known as | ||||||
| 6 | the Unclaimed Property Trust Fund. The State Treasurer may | ||||||
| 7 | deposit any amount in the Unclaimed Property Trust Fund into | ||||||
| 8 | the State Pensions Fund during the fiscal year at his or her | ||||||
| 9 | discretion; however, he or she shall,
on April 15 and October | ||||||
| 10 | 15 of each year, deposit any amount in the Unclaimed Property | ||||||
| 11 | Trust Fund
exceeding $2,500,000 into the State Pensions Fund. | ||||||
| 12 | If on either April 15 or October 15, the State Treasurer | ||||||
| 13 | determines that a balance of $2,500,000 is insufficient for the | ||||||
| 14 | prompt payment of unclaimed property claims authorized under | ||||||
| 15 | this Act, the Treasurer may retain more than $2,500,000 in the | ||||||
| 16 | Unclaimed Property Trust Fund in order to ensure the prompt | ||||||
| 17 | payment of claims. Beginning in State fiscal year 2019, all | ||||||
| 18 | amounts that are deposited into the State Pensions Fund from | ||||||
| 19 | the Unclaimed Property Trust Fund shall be apportioned to the | ||||||
| 20 | designated retirement systems as provided in subsection (c-6) | ||||||
| 21 | of Section 8.12 of the State Finance Act to reduce their | ||||||
| 22 | actuarial reserve deficiencies. He or she shall make prompt | ||||||
| 23 | payment of claims he or she
duly allows as provided for in this | ||||||
| 24 | Act for the Unclaimed Property Trust Fund.
Before making the | ||||||
| 25 | deposit the State Treasurer
shall record the name and last | ||||||
| 26 | known address of each person appearing from the
holders' | ||||||
| |||||||
| |||||||
| 1 | reports to be entitled to the abandoned property. The record | ||||||
| 2 | shall be
available for public inspection during reasonable | ||||||
| 3 | business
hours.
| ||||||
| 4 | (b) Before making any deposit to the credit of the State | ||||||
| 5 | Pensions Fund,
the State Treasurer may deduct: (1) any costs in | ||||||
| 6 | connection with sale of
abandoned property, (2) any costs of | ||||||
| 7 | mailing and publication in connection with
any abandoned | ||||||
| 8 | property, and (3) any costs in connection with the maintenance | ||||||
| 9 | of
records or disposition of claims made pursuant to this Act. | ||||||
| 10 | The State
Treasurer shall semiannually file an itemized report | ||||||
| 11 | of all such expenses with
the Legislative Audit Commission.
| ||||||
| 12 | (Source: P.A. 99-8, eff. 7-9-15; 99-523, eff. 6-30-16; 100-23, | ||||||
| 13 | eff. 7-6-17.)
| ||||||
| 14 | (765 ILCS 1025/19) (from Ch. 141, par. 119)
| ||||||
| 15 | Sec. 19.
Any person claiming an interest in any property | ||||||
| 16 | delivered to the
State under this Act may file a claim thereto | ||||||
| 17 | or to the proceeds from the
sale thereof on the form prescribed | ||||||
| 18 | by the State Treasurer.
| ||||||
| 19 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 20 | (765 ILCS 1025/19.5) | ||||||
| 21 | Sec. 19.5. Tax return identification of apparent owners of | ||||||
| 22 | abandoned property. | ||||||
| 23 | (a) At least annually the State Treasurer shall notify the | ||||||
| 24 | Department of Revenue of the names of persons appearing to be | ||||||
| |||||||
| |||||||
| 1 | owners of abandoned property held by the State Treasurer. The | ||||||
| 2 | State Treasurer shall also provide to the Department of Revenue | ||||||
| 3 | the social security numbers of such persons, if available. | ||||||
| 4 | (b) The Department of Revenue shall notify the State | ||||||
| 5 | Treasurer if any person under subsection (a) has filed an | ||||||
| 6 | Illinois income tax return and shall provide the State | ||||||
| 7 | Treasurer with the last known address of the person as it | ||||||
| 8 | appears in Department of Revenue records, except as prohibited | ||||||
| 9 | by federal law. The Department shall also provide any | ||||||
| 10 | additional addresses for the same taxpayer from the records of | ||||||
| 11 | the Department, except as prohibited by federal law. | ||||||
| 12 | (c) In order to facilitate the return of property under | ||||||
| 13 | this Section, the State Treasurer and the Department of Revenue | ||||||
| 14 | may enter into an interagency agreement concerning protection | ||||||
| 15 | of confidential information, data match rules, and other | ||||||
| 16 | issues. | ||||||
| 17 | (d) The State Treasurer may deliver, as provided under | ||||||
| 18 | Section 20 of this Act, property or pay the amount owing to a | ||||||
| 19 | person matched under this Section without the person filing a | ||||||
| 20 | claim under Section 19 of this Act if the following conditions | ||||||
| 21 | are met: | ||||||
| 22 | (1) the value of the property that is owed the person | ||||||
| 23 | is $2,000 or less; | ||||||
| 24 | (2) the property is not either tangible property or | ||||||
| 25 | securities; | ||||||
| 26 | (3) the last known address for the person according to | ||||||
| |||||||
| |||||||
| 1 | the Department of Revenue records is less than 12 months | ||||||
| 2 | old; and | ||||||
| 3 | (4) the State Treasurer has evidence sufficient to | ||||||
| 4 | establish that the person who appears in Department of | ||||||
| 5 | Revenue records is the owner of the property and the owner | ||||||
| 6 | currently resides at the last known address from the | ||||||
| 7 | Department of Revenue. | ||||||
| 8 | The State Treasurer may use additional databases to verify | ||||||
| 9 | the identity of the person and that the person currently | ||||||
| 10 | resides at the last known address. | ||||||
| 11 | (e) If the property owed to a person matched under this | ||||||
| 12 | Section has a value of greater than $2,000 or is tangible | ||||||
| 13 | property or securities, then the State Treasurer shall provide | ||||||
| 14 | notice to the person informing the person that he or she is the | ||||||
| 15 | owner of abandoned or unclaimed property held by the State and | ||||||
| 16 | may file a claim with the State Treasurer for return of the | ||||||
| 17 | property.
| ||||||
| 18 | (Source: P.A. 100-47, eff. 8-11-17.)
| ||||||
| 19 | (765 ILCS 1025/20) (from Ch. 141, par. 120)
| ||||||
| 20 | (Text of Section before amendment by P.A. 100-543)
| ||||||
| 21 | Sec. 20. Determination of claims.
| ||||||
| 22 | (a) The State Treasurer shall consider any claim filed | ||||||
| 23 | under this
Act and may, in his discretion, hold a hearing and | ||||||
| 24 | receive evidence
concerning it. Such hearing shall be conducted | ||||||
| 25 | by the State Treasurer or by a
hearing officer designated by | ||||||
| |||||||
| |||||||
| 1 | him. No hearings shall be held if the
payment of the claim is | ||||||
| 2 | ordered by a court, if the claimant is under court
| ||||||
| 3 | jurisdiction, or if the claim is paid under Article XXV of the | ||||||
| 4 | Probate Act
of 1975. The State Treasurer or hearing officer | ||||||
| 5 | shall prepare a finding and a
decision in writing on each | ||||||
| 6 | hearing, stating the substance of any evidence
heard by him, | ||||||
| 7 | his findings of fact in respect thereto, and the reasons for
| ||||||
| 8 | his decision. The State Treasurer shall review the findings and | ||||||
| 9 | decision of
each hearing conducted by a hearing officer and | ||||||
| 10 | issue a final written decision.
The final decision shall be a | ||||||
| 11 | public record. Any claim of an interest in
property that is | ||||||
| 12 | filed pursuant to this Act shall be considered and a finding
| ||||||
| 13 | and decision shall be issued by the Office of the State | ||||||
| 14 | Treasurer in a timely
and expeditious manner.
| ||||||
| 15 | (b) If the claim is allowed, and after deducting an amount | ||||||
| 16 | not to
exceed $20 to cover the cost of notice publication and | ||||||
| 17 | related clerical
expenses, the State Treasurer shall make | ||||||
| 18 | payment forthwith.
| ||||||
| 19 | (c) In order to carry out the purpose of this Act, no | ||||||
| 20 | person or company
shall be entitled to a fee for discovering | ||||||
| 21 | presumptively abandoned property
until it has been in the | ||||||
| 22 | custody of the Unclaimed Property Division
of the Office of the | ||||||
| 23 | State Treasurer for at least 24 months. Fees
for discovering | ||||||
| 24 | property that has been in the custody of that division for
more | ||||||
| 25 | than 24 months shall be limited to not more than 10% of the | ||||||
| 26 | amount
collected.
| ||||||
| |||||||
| |||||||
| 1 | (d) A person or company attempting to collect a contingent | ||||||
| 2 | fee for
discovering, on behalf of an owner, presumptively | ||||||
| 3 | abandoned property must be
licensed as a private detective | ||||||
| 4 | pursuant to the Private Detective, Private
Alarm, Private | ||||||
| 5 | Security, Fingerprint Vendor, and Locksmith Act of 2004.
| ||||||
| 6 | (e) This Section shall not apply to the fees of an attorney | ||||||
| 7 | at law duly
appointed to practice in a state of the United | ||||||
| 8 | States who is employed by a
claimant with regard to probate | ||||||
| 9 | matters on a contractual basis.
| ||||||
| 10 | (f) Any person or company offering to identify, discover, | ||||||
| 11 | or collect presumptively abandoned property or property which | ||||||
| 12 | may become presumptively abandoned on behalf of the putative | ||||||
| 13 | owner of such property in exchange for a fee, must provide the | ||||||
| 14 | owner with a written disclosure. The disclosure shall be set | ||||||
| 15 | forth in a clear and conspicuous manner and at a minimum shall | ||||||
| 16 | state the following: | ||||||
| 17 | Each state maintains an office of unclaimed property. | ||||||
| 18 | Generally, if for a number of years an owner of property | ||||||
| 19 | has not communicated directly with the holder of the | ||||||
| 20 | property, and has not otherwise indicated an interest in or | ||||||
| 21 | claimed the property, the property will be delivered to a | ||||||
| 22 | state administered unclaimed property program. Upon such | ||||||
| 23 | delivery, the owner will be able to recover the property | ||||||
| 24 | from the state administered program without charge by the | ||||||
| 25 | state. The unclaimed asset referred to in this Agreement | ||||||
| 26 | has not yet been reported or remitted to any state | ||||||
| |||||||
| |||||||
| 1 | unclaimed property office. Since you reside (or resided) in | ||||||
| 2 | Illinois, you may obtain information about the Illinois | ||||||
| 3 | unclaimed property program by logging onto its website at | ||||||
| 4 | www.treasurer.il.gov. | ||||||
| 5 | A person or company may not charge a fee greater than | ||||||
| 6 | 25% of the property's value for the recovery of that | ||||||
| 7 | property where the property is not yet reportable under | ||||||
| 8 | this Act and the designated owner of that property, as | ||||||
| 9 | reflected within the books and records of the holder, is | ||||||
| 10 | living. | ||||||
| 11 | A person or company may not charge a fee greater than | ||||||
| 12 | 33% of the property's value for the recovery of that | ||||||
| 13 | property where the property is not yet reportable under | ||||||
| 14 | this Act and the recovery of that property involves | ||||||
| 15 | documentation of the owner's death or any elements of | ||||||
| 16 | estate or trust administration. | ||||||
| 17 | (Source: P.A. 95-613, eff. 9-11-07; 95-1003, eff. 6-1-09.)
| ||||||
| 18 | (Text of Section after amendment by P.A. 100-543)
| ||||||
| 19 | Sec. 20. Determination of claims.
| ||||||
| 20 | (a) The State Treasurer shall consider any claim filed | ||||||
| 21 | under this
Act and may, in his discretion, hold a hearing and | ||||||
| 22 | receive evidence
concerning it. Such hearing shall be conducted | ||||||
| 23 | by the State Treasurer or by a
hearing officer designated by | ||||||
| 24 | him. No hearings shall be held if the
payment of the claim is | ||||||
| 25 | ordered by a court, if the claimant is under court
| ||||||
| |||||||
| |||||||
| 1 | jurisdiction, or if the claim is paid under Article XXV of the | ||||||
| 2 | Probate Act
of 1975. The State Treasurer or hearing officer | ||||||
| 3 | shall prepare a finding and a
decision in writing on each | ||||||
| 4 | hearing, stating the substance of any evidence
heard by him, | ||||||
| 5 | his findings of fact in respect thereto, and the reasons for
| ||||||
| 6 | his decision. The State Treasurer shall review the findings and | ||||||
| 7 | decision of
each hearing conducted by a hearing officer and | ||||||
| 8 | issue a final written decision.
The final decision shall be a | ||||||
| 9 | public record. Any claim of an interest in
property that is | ||||||
| 10 | filed pursuant to this Act shall be considered and a finding
| ||||||
| 11 | and decision shall be issued by the Office of the State | ||||||
| 12 | Treasurer in a timely
and expeditious manner.
| ||||||
| 13 | (b) If the claim is allowed, the State Treasurer shall make | ||||||
| 14 | payment forthwith.
| ||||||
| 15 | (c) In order to carry out the purpose of this Act, no | ||||||
| 16 | person or company
shall be entitled to a fee for discovering | ||||||
| 17 | presumptively abandoned property during the period beginning | ||||||
| 18 | on the date the property was presumed abandoned under this Act | ||||||
| 19 | and ending 24 months after the payment or delivery of the | ||||||
| 20 | property to
the Unclaimed Property Division
of the Office of | ||||||
| 21 | the State Treasurer. Fees
for discovering property that has | ||||||
| 22 | been in the custody of that division for
more than 24 months | ||||||
| 23 | shall be limited to not more than 10% of the amount
collected.
| ||||||
| 24 | (d) A person or company attempting to collect a contingent | ||||||
| 25 | fee for
discovering, on behalf of an owner, presumptively | ||||||
| 26 | abandoned property must be
licensed as a private detective | ||||||
| |||||||
| |||||||
| 1 | pursuant to the Private Detective, Private
Alarm, Private | ||||||
| 2 | Security, Fingerprint Vendor, and Locksmith Act of 2004.
| ||||||
| 3 | (e) This Section shall not apply to the fees of an attorney | ||||||
| 4 | at law duly
appointed to practice in a state of the United | ||||||
| 5 | States who is employed by a
claimant with regard to probate | ||||||
| 6 | matters on a contractual basis or to contest a denial of a | ||||||
| 7 | claim for recovery of the property.
| ||||||
| 8 | (f) Any person or company offering to identify, discover, | ||||||
| 9 | or collect property which may become presumptively abandoned on | ||||||
| 10 | behalf of the putative owner of such property in exchange for a | ||||||
| 11 | fee, must provide the owner with a written disclosure. The | ||||||
| 12 | disclosure shall be set forth in a clear and conspicuous manner | ||||||
| 13 | and at a minimum shall state the following: | ||||||
| 14 | Each state maintains an office of unclaimed property. | ||||||
| 15 | Generally, if for a number of years an owner of property | ||||||
| 16 | has not communicated directly with the holder of the | ||||||
| 17 | property, and has not otherwise indicated an interest in or | ||||||
| 18 | claimed the property, the property will be delivered to a | ||||||
| 19 | state administered unclaimed property program. Upon such | ||||||
| 20 | delivery, the owner will be able to recover the property | ||||||
| 21 | from the state administered program without charge by the | ||||||
| 22 | state. The unclaimed asset referred to in this Agreement | ||||||
| 23 | has not yet been reported or remitted to any state | ||||||
| 24 | unclaimed property office. Since you reside (or resided) in | ||||||
| 25 | Illinois, you may obtain information about the Illinois | ||||||
| 26 | unclaimed property program by logging onto its website at | ||||||
| |||||||
| |||||||
| 1 | www.illinoistreasurer.gov. | ||||||
| 2 | (Source: P.A. 100-543, eff. 1-1-18.)
| ||||||
| 3 | (765 ILCS 1025/21) (from Ch. 141, par. 121)
| ||||||
| 4 | Sec. 21.
A final administrative decision of the State | ||||||
| 5 | Treasurer in respect
to a claim filed hereunder shall be | ||||||
| 6 | subject to judicial review pursuant to the
provisions of the | ||||||
| 7 | Administrative Review Law and the rules adopted pursuant
| ||||||
| 8 | thereto. The review action may be instituted by any person | ||||||
| 9 | adversely affected
or aggrieved by the decision.
| ||||||
| 10 | The Office of the State Treasurer shall furnish a certified | ||||||
| 11 | transcript of the
record to any party of record upon the | ||||||
| 12 | payment of the actual page charge of the
record to a commercial | ||||||
| 13 | reporting service for the preparation of the transcript.
If no | ||||||
| 14 | hearing was held, the State Treasurer shall deliver a copy of | ||||||
| 15 | his
decision stating the reasons upon which the claim was | ||||||
| 16 | denied and deliver it to
any party of record within 20 days of | ||||||
| 17 | demand.
| ||||||
| 18 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 19 | (765 ILCS 1025/22) (from Ch. 141, par. 122)
| ||||||
| 20 | Sec. 22.
The State Treasurer, after receiving reports of | ||||||
| 21 | property deemed
abandoned pursuant to this Act, may decline to | ||||||
| 22 | receive any property reported
which he deems to have a value | ||||||
| 23 | less than the cost of giving notice and holding
sale, or he | ||||||
| 24 | may, if he deems it desirable because of the small sum | ||||||
| |||||||
| |||||||
| 1 | involved,
postpone taking possession until a sufficient sum has | ||||||
| 2 | accumulated. Unless the
holder of the property is notified to | ||||||
| 3 | the contrary within 120 days after filing
the report required | ||||||
| 4 | under Section 11, the State Treasurer shall be deemed to
have | ||||||
| 5 | elected to receive the custody of the property.
| ||||||
| 6 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 7 | (765 ILCS 1025/23) (from Ch. 141, par. 123)
| ||||||
| 8 | Sec. 23.
(a) If the State Treasurer has reason to believe | ||||||
| 9 | that any person
has failed to report property in accordance | ||||||
| 10 | with this Act, he may make a demand
by certified mail, return | ||||||
| 11 | receipt requested, that such report be made and filed
with the | ||||||
| 12 | State Treasurer. The report of abandoned property or any other | ||||||
| 13 | report
required shall be made and filed with the State | ||||||
| 14 | Treasurer within 30 days after
receipt of the demand.
| ||||||
| 15 | (b) The State may at reasonable times and upon reasonable | ||||||
| 16 | notice examine the
records of any person if the State Treasurer | ||||||
| 17 | has reason to believe that such
person has failed to report | ||||||
| 18 | property that should have been reported pursuant to
this Act. | ||||||
| 19 | Upon the direction of the State Treasurer to do so, the Office | ||||||
| 20 | of
Banks and Real Estate shall, on behalf of the State, conduct | ||||||
| 21 | the examination of
the records of any person who is regulated | ||||||
| 22 | by the Office of Banks and Real
Estate under the Illinois | ||||||
| 23 | Banking Act, the Corporate Fiduciary Act, the Foreign
Banking | ||||||
| 24 | Office Act, the Illinois Savings and Loan Act of 1985, or the | ||||||
| 25 | Savings
Bank Act. Upon direction of the State Treasurer to do | ||||||
| |||||||
| |||||||
| 1 | so, the Department of
Financial Institutions shall, on behalf | ||||||
| 2 | of the State, conduct the examination
of the records of any | ||||||
| 3 | person doing business in the State under the supervision
of the | ||||||
| 4 | Department of Financial Institutions, the National Credit | ||||||
| 5 | Union
Administration, the Office of Thrift Supervision, or the | ||||||
| 6 | Comptroller of the
Currency. The Office of Banks and Real | ||||||
| 7 | Estate and the Department of Financial
Institutions shall | ||||||
| 8 | conduct all examinations during the next regular examination
of | ||||||
| 9 | the person, unless the State Treasurer has reason to believe | ||||||
| 10 | that an
accelerated examination schedule is required to protect | ||||||
| 11 | the State's interest,
in which case the examination must be | ||||||
| 12 | conducted within 90 days of the
State Treasurer's direction to | ||||||
| 13 | do so. The
Office of Banks and Real Estate and the Department | ||||||
| 14 | of Financial Institutions
may contract with third parties to | ||||||
| 15 | ensure that the examinations are commenced
in a timely manner. | ||||||
| 16 | The Department of Financial Institutions and the Office of
| ||||||
| 17 | Banks and Real Estate shall report the results of all | ||||||
| 18 | examinations
that are undertaken at the direction of the State | ||||||
| 19 | Treasurer under this Act,
which may include confidential | ||||||
| 20 | information, to the State Treasurer in a timely
manner and, | ||||||
| 21 | upon the request of the Treasurer, shall assist in the | ||||||
| 22 | evaluation
of the examinations. All examinations that are not | ||||||
| 23 | performed by the Office of
Banks and Real Estate or the | ||||||
| 24 | Department of Financial Institutions shall be
performed by the | ||||||
| 25 | State Treasurer.
| ||||||
| 26 | (c) The actual cost of any examination or investigation | ||||||
| |||||||
| |||||||
| 1 | incurred by the
State in administering any provision of this | ||||||
| 2 | Act shall be borne by the holder
examined or investigated if:
| ||||||
| 3 | (1) a written demand for a report has been made and the | ||||||
| 4 | report has
not been properly filed within the time period | ||||||
| 5 | specified in this Section, or
| ||||||
| 6 | (2) a report has been received and additional property | ||||||
| 7 | reportable under
the Act is discovered by such examination | ||||||
| 8 | or investigation.
| ||||||
| 9 | No holder shall be liable to pay more than an amount equal | ||||||
| 10 | to the amount of
reportable property discovered by such | ||||||
| 11 | investigation as a cost of examination
or investigation.
| ||||||
| 12 | (d) For all holders other than a trust division, a trust | ||||||
| 13 | department, a
trust company, or an affiliate of any of them, | ||||||
| 14 | subsection (c) does not apply
to any examination commenced | ||||||
| 15 | after the
effective date of this amendatory Act of 1993. As of | ||||||
| 16 | January 1, 1998,
subsection (c) does not apply to an | ||||||
| 17 | examination
of a trust division or trust department or a trust | ||||||
| 18 | company, or affiliate of any
of the foregoing that provides | ||||||
| 19 | nondealer corporate custodial services for
securities or | ||||||
| 20 | securities transactions, organized under the laws of this or
| ||||||
| 21 | another state or the United States unless the Department of | ||||||
| 22 | Financial
Institutions has commenced, but not finalized, an | ||||||
| 23 | examination of the holder as
of that date and the property is | ||||||
| 24 | included in a final examination report for the
period covered | ||||||
| 25 | by the examination.
| ||||||
| 26 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| |||||||
| |||||||
| 1 | (765 ILCS 1025/23.5)
| ||||||
| 2 | Sec. 23.5. Notice of deficiency; time; effect.
| ||||||
| 3 | (a) The State Treasurer shall issue a Notice of Deficiency
| ||||||
| 4 | to a holder or direct the commencement of
an examination of a | ||||||
| 5 | holder with respect to a report required under this Act
within | ||||||
| 6 | 5 years after the report is filed. A Notice of Deficiency shall | ||||||
| 7 | specify
the additional amounts, if known, purportedly | ||||||
| 8 | reportable under this Act or
state that those amounts are | ||||||
| 9 | unknown. If the State Treasurer fails to issue a
Notice of | ||||||
| 10 | Deficiency or direct the commencement of an examination within | ||||||
| 11 | the
time required by this Section, the Office of the State | ||||||
| 12 | Treasurer
may not thereafter issue a Notice of Deficiency, | ||||||
| 13 | otherwise assert a deficiency,
or seek any other charge or | ||||||
| 14 | remedy under this Act with respect to that report.
| ||||||
| 15 | (b) This Section does not apply to a holder that is a trust | ||||||
| 16 | division or
trust department or a trust company, or affiliate | ||||||
| 17 | of any of the
foregoing that provides nondealer corporate | ||||||
| 18 | custodial services for securities
or securities transactions, | ||||||
| 19 | organized under the laws of this or another
state or the United | ||||||
| 20 | States.
| ||||||
| 21 | As of January 1, 1998, this subsection shall not be | ||||||
| 22 | applicable unless the
Department of Financial Institutions has | ||||||
| 23 | commenced, but not
finalized, an examination of the holder as | ||||||
| 24 | of that date and the property is
included in a final | ||||||
| 25 | examination report for the period covered by the
examination.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 2 | (765 ILCS 1025/24) (from Ch. 141, par. 124)
| ||||||
| 3 | Sec. 24. Enforcement of delivery. If any person refuses to | ||||||
| 4 | deliver
property to the State Treasurer as required under this | ||||||
| 5 | Act,
the State Treasurer may bring an action in the name of the
| ||||||
| 6 | State in the circuit court or any federal court to enforce | ||||||
| 7 | delivery.
| ||||||
| 8 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 9 | (765 ILCS 1025/24.5)
| ||||||
| 10 | Sec. 24.5. Contingency fees. The State may not enter into a | ||||||
| 11 | contract
with a person to conduct an examination of a holder | ||||||
| 12 | located within the State of
Illinois under which the State | ||||||
| 13 | agrees to pay such person a fee based upon a
percentage of the | ||||||
| 14 | property recovered for the State of Illinois. Nothing in
this | ||||||
| 15 | Section prohibits the Office of the State Treasurer from | ||||||
| 16 | entering into
contracts with persons to examine holders located | ||||||
| 17 | outside the State of Illinois
under which the Office of the | ||||||
| 18 | State Treasurer agrees to pay such persons based
upon a | ||||||
| 19 | percentage of the property recovered for the State of Illinois.
| ||||||
| 20 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 21 | (765 ILCS 1025/25) (from Ch. 141, par. 125)
| ||||||
| 22 | Sec. 25.
(a) Any person who fails to render any report or | ||||||
| 23 | perform other
duties required under this Act, is guilty of a | ||||||
| |||||||
| |||||||
| 1 | business offense and
fined not more than $500. Each day such | ||||||
| 2 | report is withheld or the duties
are not performed constitutes | ||||||
| 3 | a separate offense.
| ||||||
| 4 | (b) Any person who wilfully refuses to pay or deliver | ||||||
| 5 | abandoned property
to the State Treasurer as required under | ||||||
| 6 | this Act shall be
guilty of a Class B misdemeanor. Each day the | ||||||
| 7 | violation continues is a
separate offense.
| ||||||
| 8 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 9 | (765 ILCS 1025/25.5)
| ||||||
| 10 | Sec. 25.5. Administrative charges, fees, and interest | ||||||
| 11 | charges.
| ||||||
| 12 | (a) The State Treasurer may charge a holder that files an | ||||||
| 13 | unclaimed property
report after the due date, as determined by | ||||||
| 14 | the State Treasurer, the lesser of
$100 or $1 for each day the | ||||||
| 15 | report remains overdue.
| ||||||
| 16 | (b) The State Treasurer may charge a holder that fails to | ||||||
| 17 | timely perform due
diligence, as required by this Act, $5 for | ||||||
| 18 | each name and address account
reported if 35% or more of the | ||||||
| 19 | accounts are claimed within the 24 months
immediately following | ||||||
| 20 | the filing of the holder's annual report.
| ||||||
| 21 | (c) A holder who remits unclaimed property that is past due | ||||||
| 22 | or fails to
remit unclaimed property pursuant to an examination | ||||||
| 23 | by the State, may be
charged based on the value of the property | ||||||
| 24 | the greater of 1% per month or
an annualized rate that is 3 | ||||||
| 25 | percentage points above the prime rate as
published in the Wall | ||||||
| |||||||
| |||||||
| 1 | Street Journal on the first business day of the month in
which | ||||||
| 2 | the property was remitted. If the property remains past due for | ||||||
| 3 | more
than 12 months, the interest rate for each succeeding year | ||||||
| 4 | shall be calculated
at the greater of an annual rate of 12% or | ||||||
| 5 | 3 percentage points above the prime
rate. The prime rate | ||||||
| 6 | applied shall be as published on the first business day of
| ||||||
| 7 | January of that successive year.
| ||||||
| 8 | (d) The State Treasurer may grant an extension of time to | ||||||
| 9 | any holder to
report or remit when the holder submits a written | ||||||
| 10 | request for an extension
before the date a report or remittance | ||||||
| 11 | is due.
| ||||||
| 12 | (e) Whenever the State Treasurer charges a holder or | ||||||
| 13 | assesses a fee provided
for in this Section, he shall serve | ||||||
| 14 | notice upon the holder by personal service
or by delivering the | ||||||
| 15 | notice by certified mail, return receipt required, through
the | ||||||
| 16 | United States Postal Service to the holder.
| ||||||
| 17 | (f) A holder may contest a charge or other fee issued by | ||||||
| 18 | the State
Treasurer by
requesting in writing an administrative | ||||||
| 19 | hearing within 15 business days of the
receipt of the State | ||||||
| 20 | Treasurer's notice of the charge or
fee. The hearing shall be
| ||||||
| 21 | held at a time and place designated by the State Treasurer.
| ||||||
| 22 | (g) The State Treasurer's finding subjecting a holder to
a
| ||||||
| 23 | charge or other fee
shall become a final order under the | ||||||
| 24 | Administrative Review Law upon the failure
of the holder to | ||||||
| 25 | demand a hearing within 15 business days.
| ||||||
| 26 | (h) If a hearing is held, the State Treasurer shall issue
| ||||||
| |||||||
| |||||||
| 1 | an order affirming,
modifying, or overruling the charge or | ||||||
| 2 | other fee. The order shall be a final
order under the | ||||||
| 3 | Administrative Review Law.
| ||||||
| 4 | (i) A holder shall not be charged for failing to remit past | ||||||
| 5 | due unclaimed
property pursuant to the State's
examination and | ||||||
| 6 | demand for remittance
when the holder, in good faith, contests | ||||||
| 7 | all or part of the finding, until a
final order reviewing the | ||||||
| 8 | remittance is entered by a hearing officer or the
circuit | ||||||
| 9 | court. With regard to contested examinations, the charges, | ||||||
| 10 | fees, or
interest shall not accrue during the period from the | ||||||
| 11 | holder's filing of the
request for a hearing until the date of | ||||||
| 12 | the final order. However, a holder may
be charged for failing | ||||||
| 13 | to remit any undisputed amounts of unclaimed property
that are | ||||||
| 14 | not being contested in an administrative hearing or court | ||||||
| 15 | action.
| ||||||
| 16 | (j) The administrative charges, fees, and interest charges | ||||||
| 17 | provided for in
this Section shall not apply to property held | ||||||
| 18 | by a trust division or trust
department or by a trust company, | ||||||
| 19 | or affiliate of any of the foregoing that
provides nondealer | ||||||
| 20 | corporate custodial services for securities or securities
| ||||||
| 21 | transactions, organized under the laws of this or another state | ||||||
| 22 | or the United
States.
| ||||||
| 23 | As of January 1, 1998, this subsection shall not be | ||||||
| 24 | applicable unless the
Department of Financial Institutions has | ||||||
| 25 | commenced, but not
finalized, an examination of the holder as | ||||||
| 26 | of
that date and the property is included in a final | ||||||
| |||||||
| |||||||
| 1 | examination report for the
period covered by the examination.
| ||||||
| 2 | (k) In the conduct of a hearing initiated by a holder under | ||||||
| 3 | this Act, the
State Treasurer has the power to administer | ||||||
| 4 | oaths, subpoena
witnesses, and
compel the production of books, | ||||||
| 5 | papers, documents, or records relevant to the
hearing under | ||||||
| 6 | this Act.
| ||||||
| 7 | (l) The provisions of this Section apply only to reports | ||||||
| 8 | due and
examinations commenced after the effective date of this | ||||||
| 9 | amendatory Act of
1993.
| ||||||
| 10 | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| ||||||
| 11 | (765 ILCS 1025/26) (from Ch. 141, par. 126)
| ||||||
| 12 | Sec. 26.
The State Treasurer, Director of Financial | ||||||
| 13 | Institutions, and the
Commissioner of Banks and Real Estate are | ||||||
| 14 | hereby authorized to make necessary
rules and regulations to | ||||||
| 15 | carry out the provisions of this Act.
| ||||||
| 16 | (Source: P.A. 91-16, eff. 7-1-99.)
| ||||||
| 17 | (765 ILCS 1025/27) (from Ch. 141, par. 127)
| ||||||
| 18 | Sec. 27.
This Act shall not apply to any property, other | ||||||
| 19 | than property
covered by Sections 6 and 8 of this Act, as to | ||||||
| 20 | which the presumption of
abandonment prescribed by this Act | ||||||
| 21 | occurred prior to August 17, 1946, to
any property that has | ||||||
| 22 | been presumed abandoned or escheated under the laws
of another | ||||||
| 23 | state prior to August 17, 1961, or to any funds held by any
| ||||||
| 24 | annuity, pension or benefit funds created pursuant to the laws | ||||||
| |||||||
| |||||||
| 1 | of this
State and supported by public revenues.
| ||||||
| 2 | (Source: Laws 1963, p. 1805.)
| ||||||
| 3 | (765 ILCS 1025/28) (from Ch. 141, par. 128)
| ||||||
| 4 | Sec. 28.
If any provision of this Act or the application | ||||||
| 5 | thereof to any
person or circumstances is held invalid, the | ||||||
| 6 | invalidity shall not affect
other provisions or applications of | ||||||
| 7 | the Act which can be given effect
without the invalid | ||||||
| 8 | provisions or application, and to this end the
provisions of | ||||||
| 9 | this Act are severable.
| ||||||
| 10 | (Source: Laws 1961, p. 3426.)
| ||||||
| 11 | (765 ILCS 1025/29) (from Ch. 141, par. 129)
| ||||||
| 12 | Sec. 29.
This Act shall be so construed as to effectuate | ||||||
| 13 | its general
purpose to make uniform the law of those states | ||||||
| 14 | which enact it.
| ||||||
| 15 | (Source: Laws 1961, p. 3426.)
| ||||||
| 16 | (765 ILCS 1025/29.5)
| ||||||
| 17 | Sec. 29.5.
The provisions of this Act do not apply to | ||||||
| 18 | property and
proceedings under the Labor and Storage Lien | ||||||
| 19 | (Small Amount) Act.
| ||||||
| 20 | (Source: P.A. 88-435.)
| ||||||
| 21 | (765 ILCS 1025/30) (from Ch. 141, par. 130)
| ||||||
| 22 | Sec. 30.
This Act may be cited as the Uniform Disposition | ||||||
| |||||||
| |||||||
| 1 | of Unclaimed Property Act.
| ||||||
| 2 | (Source: Laws 1961, p. 3426.)
| ||||||
| 3 | (35 ILCS 750/Act rep.)
| ||||||
| 4 | Section 3. The State Tax Lien Registration Act is repealed.
| ||||||
| 5 | (765 ILCS 1026/Act rep.)
| ||||||
| 6 | Section 4. The Revised Uniform Unclaimed Property Act is | ||||||
| 7 | repealed.
| ||||||
| 8 | Section 5. The Illinois Administrative Procedure Act is | ||||||
| 9 | amended by changing Section 1-5 as follows:
| ||||||
| 10 | (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
| ||||||
| 11 | Sec. 1-5. Applicability.
| ||||||
| 12 | (a) This Act applies to every agency as defined in this | ||||||
| 13 | Act.
Beginning January 1, 1978, in case of conflict between the | ||||||
| 14 | provisions of
this Act and the Act creating or conferring power | ||||||
| 15 | on an agency, this Act
shall control. If, however, an agency | ||||||
| 16 | (or its predecessor in the case of
an agency that has been | ||||||
| 17 | consolidated or reorganized) has existing procedures
on July 1, | ||||||
| 18 | 1977, specifically for contested cases or licensing, those | ||||||
| 19 | existing
provisions control, except that this exception | ||||||
| 20 | respecting contested
cases and licensing does not apply if the | ||||||
| 21 | Act creating or conferring
power on the agency adopts by | ||||||
| 22 | express reference the provisions of this
Act. Where the Act | ||||||
| |||||||
| |||||||
| 1 | creating or conferring power on an agency
establishes | ||||||
| 2 | administrative procedures not covered by this Act, those
| ||||||
| 3 | procedures shall remain in effect.
| ||||||
| 4 | (b) The provisions of this Act do not apply to (i) | ||||||
| 5 | preliminary
hearings, investigations, or practices where no | ||||||
| 6 | final determinations
affecting State funding are made by the | ||||||
| 7 | State Board of Education, (ii) legal
opinions issued under | ||||||
| 8 | Section 2-3.7 of the School Code, (iii) as to State
colleges | ||||||
| 9 | and universities, their disciplinary and grievance | ||||||
| 10 | proceedings,
academic irregularity and capricious grading | ||||||
| 11 | proceedings, and admission
standards and procedures, and (iv) | ||||||
| 12 | the class specifications for positions
and individual position | ||||||
| 13 | descriptions prepared and maintained under the
Personnel Code. | ||||||
| 14 | Those class specifications shall, however, be made
reasonably | ||||||
| 15 | available to the public for inspection and copying. The | ||||||
| 16 | provisions of this Act do not apply to hearings under Section | ||||||
| 17 | 20 of the Uniform Disposition of Unclaimed Property Act.
| ||||||
| 18 | (c) Section 5-35 of this Act relating to procedures for | ||||||
| 19 | rulemaking
does not apply to the following:
| ||||||
| 20 | (1) Rules adopted by the Pollution Control Board that, | ||||||
| 21 | in accordance
with Section 7.2 of the Environmental | ||||||
| 22 | Protection Act, are identical in
substance to federal | ||||||
| 23 | regulations or amendments to those regulations
| ||||||
| 24 | implementing the following: Sections 3001, 3002, 3003, | ||||||
| 25 | 3004, 3005, and 9003
of the Solid Waste Disposal Act; | ||||||
| 26 | Section 105 of the Comprehensive Environmental
Response, | ||||||
| |||||||
| |||||||
| 1 | Compensation, and Liability Act of 1980; Sections 307(b), | ||||||
| 2 | 307(c),
307(d), 402(b)(8), and 402(b)(9) of the Federal | ||||||
| 3 | Water Pollution Control
Act; Sections 1412(b), 1414(c), | ||||||
| 4 | 1417(a), 1421, and 1445(a) of the Safe
Drinking Water Act; | ||||||
| 5 | and Section 109 of the Clean Air Act.
| ||||||
| 6 | (2) Rules adopted by the Pollution Control Board that | ||||||
| 7 | establish or
amend standards for the emission of | ||||||
| 8 | hydrocarbons and carbon monoxide from
gasoline powered | ||||||
| 9 | motor vehicles subject to inspection under the Vehicle | ||||||
| 10 | Emissions Inspection Law of 2005 or its predecessor laws.
| ||||||
| 11 | (3) Procedural rules adopted by the Pollution Control | ||||||
| 12 | Board governing
requests for exceptions under Section 14.2 | ||||||
| 13 | of the Environmental Protection Act.
| ||||||
| 14 | (4) The Pollution Control Board's grant, pursuant to an
| ||||||
| 15 | adjudicatory determination, of an adjusted standard for | ||||||
| 16 | persons who can
justify an adjustment consistent with | ||||||
| 17 | subsection (a) of Section 27 of
the Environmental | ||||||
| 18 | Protection Act.
| ||||||
| 19 | (4.5) The Pollution Control Board's adoption of | ||||||
| 20 | time-limited water quality standards under Section 38.5 of | ||||||
| 21 | the Environmental Protection Act. | ||||||
| 22 | (5) Rules adopted by the Pollution Control Board that | ||||||
| 23 | are identical in
substance to the regulations adopted by | ||||||
| 24 | the Office of the State Fire
Marshal under clause (ii) of | ||||||
| 25 | paragraph (b) of subsection (3) of Section 2
of the | ||||||
| 26 | Gasoline Storage Act.
| ||||||
| |||||||
| |||||||
| 1 | (d) Pay rates established under Section 8a of the Personnel | ||||||
| 2 | Code
shall be amended or repealed pursuant to the process set | ||||||
| 3 | forth in Section
5-50 within 30 days after it becomes necessary | ||||||
| 4 | to do so due to a conflict
between the rates and the terms of a | ||||||
| 5 | collective bargaining agreement
covering the compensation of | ||||||
| 6 | an employee subject to that Code.
| ||||||
| 7 | (e) Section 10-45 of this Act shall not apply to any | ||||||
| 8 | hearing, proceeding,
or investigation conducted under Section | ||||||
| 9 | 13-515 of the Public Utilities Act.
| ||||||
| 10 | (f) Article 10 of this Act does not apply to any hearing, | ||||||
| 11 | proceeding, or
investigation conducted by the State Council for | ||||||
| 12 | the State of Illinois created
under Section 3-3-11.05 of the | ||||||
| 13 | Unified Code of Corrections or by the Interstate
Commission for | ||||||
| 14 | Adult Offender Supervision created under the
Interstate | ||||||
| 15 | Compact for Adult Offender Supervision or by the Interstate | ||||||
| 16 | Commission for Juveniles created under the Interstate Compact | ||||||
| 17 | for Juveniles.
| ||||||
| 18 | (g) This Act is subject to the provisions of Article XXI of
| ||||||
| 19 | the Public Utilities Act. To the extent that any provision of
| ||||||
| 20 | this Act conflicts with the provisions of that Article XXI, the
| ||||||
| 21 | provisions of that Article XXI control.
| ||||||
| 22 | (Source: P.A. 99-937, eff. 2-24-17; 100-22, eff. 1-1-18.)
| ||||||
| 23 | Section 10. The Freedom of Information Act is amended by | ||||||
| 24 | changing Section 7.5 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (5 ILCS 140/7.5) | ||||||
| 2 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
| 3 | by the statutes referenced below, the following shall be exempt | ||||||
| 4 | from inspection and copying: | ||||||
| 5 | (a) All information determined to be confidential | ||||||
| 6 | under Section 4002 of the Technology Advancement and | ||||||
| 7 | Development Act. | ||||||
| 8 | (b) Library circulation and order records identifying | ||||||
| 9 | library users with specific materials under the Library | ||||||
| 10 | Records Confidentiality Act. | ||||||
| 11 | (c) Applications, related documents, and medical | ||||||
| 12 | records received by the Experimental Organ Transplantation | ||||||
| 13 | Procedures Board and any and all documents or other records | ||||||
| 14 | prepared by the Experimental Organ Transplantation | ||||||
| 15 | Procedures Board or its staff relating to applications it | ||||||
| 16 | has received. | ||||||
| 17 | (d) Information and records held by the Department of | ||||||
| 18 | Public Health and its authorized representatives relating | ||||||
| 19 | to known or suspected cases of sexually transmissible | ||||||
| 20 | disease or any information the disclosure of which is | ||||||
| 21 | restricted under the Illinois Sexually Transmissible | ||||||
| 22 | Disease Control Act. | ||||||
| 23 | (e) Information the disclosure of which is exempted | ||||||
| 24 | under Section 30 of the Radon Industry Licensing Act. | ||||||
| 25 | (f) Firm performance evaluations under Section 55 of | ||||||
| 26 | the Architectural, Engineering, and Land Surveying | ||||||
| |||||||
| |||||||
| 1 | Qualifications Based Selection Act. | ||||||
| 2 | (g) Information the disclosure of which is restricted | ||||||
| 3 | and exempted under Section 50 of the Illinois Prepaid | ||||||
| 4 | Tuition Act. | ||||||
| 5 | (h) Information the disclosure of which is exempted | ||||||
| 6 | under the State Officials and Employees Ethics Act, and | ||||||
| 7 | records of any lawfully created State or local inspector | ||||||
| 8 | general's office that would be exempt if created or | ||||||
| 9 | obtained by an Executive Inspector General's office under | ||||||
| 10 | that Act. | ||||||
| 11 | (i) Information contained in a local emergency energy | ||||||
| 12 | plan submitted to a municipality in accordance with a local | ||||||
| 13 | emergency energy plan ordinance that is adopted under | ||||||
| 14 | Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
| 15 | (j) Information and data concerning the distribution | ||||||
| 16 | of surcharge moneys collected and remitted by carriers | ||||||
| 17 | under the Emergency Telephone System Act. | ||||||
| 18 | (k) Law enforcement officer identification information | ||||||
| 19 | or driver identification information compiled by a law | ||||||
| 20 | enforcement agency or the Department of Transportation | ||||||
| 21 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
| 22 | (l) Records and information provided to a residential | ||||||
| 23 | health care facility resident sexual assault and death | ||||||
| 24 | review team or the Executive Council under the Abuse | ||||||
| 25 | Prevention Review Team Act. | ||||||
| 26 | (m) Information provided to the predatory lending | ||||||
| |||||||
| |||||||
| 1 | database created pursuant to Article 3 of the Residential | ||||||
| 2 | Real Property Disclosure Act, except to the extent | ||||||
| 3 | authorized under that Article. | ||||||
| 4 | (n) Defense budgets and petitions for certification of | ||||||
| 5 | compensation and expenses for court appointed trial | ||||||
| 6 | counsel as provided under Sections 10 and 15 of the Capital | ||||||
| 7 | Crimes Litigation Act. This subsection (n) shall apply | ||||||
| 8 | until the conclusion of the trial of the case, even if the | ||||||
| 9 | prosecution chooses not to pursue the death penalty prior | ||||||
| 10 | to trial or sentencing. | ||||||
| 11 | (o) Information that is prohibited from being | ||||||
| 12 | disclosed under Section 4 of the Illinois Health and | ||||||
| 13 | Hazardous Substances Registry Act. | ||||||
| 14 | (p) Security portions of system safety program plans, | ||||||
| 15 | investigation reports, surveys, schedules, lists, data, or | ||||||
| 16 | information compiled, collected, or prepared by or for the | ||||||
| 17 | Regional Transportation Authority under Section 2.11 of | ||||||
| 18 | the Regional Transportation Authority Act or the St. Clair | ||||||
| 19 | County Transit District under the Bi-State Transit Safety | ||||||
| 20 | Act. | ||||||
| 21 | (q) Information prohibited from being disclosed by the | ||||||
| 22 | Personnel Record Records Review Act. | ||||||
| 23 | (r) Information prohibited from being disclosed by the | ||||||
| 24 | Illinois School Student Records Act. | ||||||
| 25 | (s) Information the disclosure of which is restricted | ||||||
| 26 | under Section 5-108 of the Public Utilities Act.
| ||||||
| |||||||
| |||||||
| 1 | (t) All identified or deidentified health information | ||||||
| 2 | in the form of health data or medical records contained in, | ||||||
| 3 | stored in, submitted to, transferred by, or released from | ||||||
| 4 | the Illinois Health Information Exchange, and identified | ||||||
| 5 | or deidentified health information in the form of health | ||||||
| 6 | data and medical records of the Illinois Health Information | ||||||
| 7 | Exchange in the possession of the Illinois Health | ||||||
| 8 | Information Exchange Authority due to its administration | ||||||
| 9 | of the Illinois Health Information Exchange. The terms | ||||||
| 10 | "identified" and "deidentified" shall be given the same | ||||||
| 11 | meaning as in the Health Insurance Portability and | ||||||
| 12 | Accountability Act of 1996, Public Law 104-191, or any | ||||||
| 13 | subsequent amendments thereto, and any regulations | ||||||
| 14 | promulgated thereunder. | ||||||
| 15 | (u) Records and information provided to an independent | ||||||
| 16 | team of experts under the Developmental Disability and | ||||||
| 17 | Mental Health Safety Act (also known as Brian's Law). | ||||||
| 18 | (v) Names and information of people who have applied | ||||||
| 19 | for or received Firearm Owner's Identification Cards under | ||||||
| 20 | the Firearm Owners Identification Card Act or applied for | ||||||
| 21 | or received a concealed carry license under the Firearm | ||||||
| 22 | Concealed Carry Act, unless otherwise authorized by the | ||||||
| 23 | Firearm Concealed Carry Act; and databases under the | ||||||
| 24 | Firearm Concealed Carry Act, records of the Concealed Carry | ||||||
| 25 | Licensing Review Board under the Firearm Concealed Carry | ||||||
| 26 | Act, and law enforcement agency objections under the | ||||||
| |||||||
| |||||||
| 1 | Firearm Concealed Carry Act. | ||||||
| 2 | (w) Personally identifiable information which is | ||||||
| 3 | exempted from disclosure under subsection (g) of Section | ||||||
| 4 | 19.1 of the Toll Highway Act. | ||||||
| 5 | (x) Information which is exempted from disclosure | ||||||
| 6 | under Section 5-1014.3 of the Counties Code or Section | ||||||
| 7 | 8-11-21 of the Illinois Municipal Code. | ||||||
| 8 | (y) Confidential information under the Adult | ||||||
| 9 | Protective Services Act and its predecessor enabling | ||||||
| 10 | statute, the Elder Abuse and Neglect Act, including | ||||||
| 11 | information about the identity and administrative finding | ||||||
| 12 | against any caregiver of a verified and substantiated | ||||||
| 13 | decision of abuse, neglect, or financial exploitation of an | ||||||
| 14 | eligible adult maintained in the Registry established | ||||||
| 15 | under Section 7.5 of the Adult Protective Services Act. | ||||||
| 16 | (z) Records and information provided to a fatality | ||||||
| 17 | review team or the Illinois Fatality Review Team Advisory | ||||||
| 18 | Council under Section 15 of the Adult Protective Services | ||||||
| 19 | Act. | ||||||
| 20 | (aa) Information which is exempted from disclosure | ||||||
| 21 | under Section 2.37 of the Wildlife Code. | ||||||
| 22 | (bb) Information which is or was prohibited from | ||||||
| 23 | disclosure by the Juvenile Court Act of 1987. | ||||||
| 24 | (cc) Recordings made under the Law Enforcement | ||||||
| 25 | Officer-Worn Body Camera Act, except to the extent | ||||||
| 26 | authorized under that Act. | ||||||
| |||||||
| |||||||
| 1 | (dd) Information that is prohibited from being | ||||||
| 2 | disclosed under Section 45 of the Condominium and Common | ||||||
| 3 | Interest Community Ombudsperson Act. | ||||||
| 4 | (ee) Information that is exempted from disclosure | ||||||
| 5 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
| 6 | (ff) (Blank). Information that is exempted from | ||||||
| 7 | disclosure under the Revised Uniform Unclaimed Property | ||||||
| 8 | Act. | ||||||
| 9 | (gg) Information that is prohibited from being | ||||||
| 10 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
| 11 | Code. | ||||||
| 12 | (hh) Records that are exempt from disclosure under | ||||||
| 13 | Section 1A-16.7 of the Election Code. | ||||||
| 14 | (ii) Information which is exempted from disclosure | ||||||
| 15 | under Section 2505-800 of the Department of Revenue Law of | ||||||
| 16 | the Civil Administrative Code of Illinois. | ||||||
| 17 | (jj) Information and reports that are required to be | ||||||
| 18 | submitted to the Department of Labor by registering day and | ||||||
| 19 | temporary labor service agencies but are exempt from | ||||||
| 20 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
| 21 | and Temporary Labor Services Act. | ||||||
| 22 | (kk) Information prohibited from disclosure under the | ||||||
| 23 | Seizure and Forfeiture Reporting Act. | ||||||
| 24 | (ll) Information the disclosure of which is restricted | ||||||
| 25 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
| 26 | Aid Code. | ||||||
| |||||||
| |||||||
| 1 | (mm) (ll) Records that are exempt from disclosure under | ||||||
| 2 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
| 3 | (nn) (ll) Information that is exempt from disclosure | ||||||
| 4 | under Section 70 of the Higher Education Student Assistance | ||||||
| 5 | Act. | ||||||
| 6 | (Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, | ||||||
| 7 | eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16; | ||||||
| 8 | 99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18; | ||||||
| 9 | 100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff. | ||||||
| 10 | 8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517, | ||||||
| 11 | eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19; | ||||||
| 12 | 100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised | ||||||
| 13 | 10-12-18.)
| ||||||
| 14 | Section 15. The State Comptroller Act is amended by | ||||||
| 15 | changing Section 9 as follows:
| ||||||
| 16 | (15 ILCS 405/9) (from Ch. 15, par. 209)
| ||||||
| 17 | Sec. 9. Warrants; vouchers; preaudit.
| ||||||
| 18 | (a) No payment may be made from
public funds held by the | ||||||
| 19 | State Treasurer in or outside of the State
treasury, except by | ||||||
| 20 | warrant drawn by the Comptroller and presented by
him to the | ||||||
| 21 | treasurer to be countersigned except for payments made pursuant
| ||||||
| 22 | to Section 9.03 or 9.05 of this Act.
| ||||||
| 23 | (b) No warrant for the payment of money by the State | ||||||
| 24 | Treasurer may be
drawn by the Comptroller without the | ||||||
| |||||||
| |||||||
| 1 | presentation of itemized vouchers
indicating that the | ||||||
| 2 | obligation or expenditure is pursuant to law and
authorized, | ||||||
| 3 | and authorizing the Comptroller to order payment.
| ||||||
| 4 | (b-1) An itemized voucher for under $5 that is presented to | ||||||
| 5 | the Comptroller for payment shall not be paid except through | ||||||
| 6 | electronic funds transfer. This subsection (b-1) does not apply | ||||||
| 7 | to (i) vouchers presented by the legislative branch of State | ||||||
| 8 | government, (ii) vouchers presented by the State Treasurer's | ||||||
| 9 | Office for the payment of unclaimed property claims authorized | ||||||
| 10 | under the Revised Uniform Disposition of Unclaimed Property | ||||||
| 11 | Act, or (iii) vouchers presented by the Department of Revenue | ||||||
| 12 | for the payment of refunds of taxes administered by the | ||||||
| 13 | Department. | ||||||
| 14 | (c) The Comptroller shall examine each voucher required by | ||||||
| 15 | law to be filed
with him and determine whether unencumbered | ||||||
| 16 | appropriations or unencumbered
obligational or expenditure | ||||||
| 17 | authority other than by appropriation are
legally available to | ||||||
| 18 | incur the obligation or to make the expenditure of public
| ||||||
| 19 | funds. If he determines that
unencumbered appropriations or | ||||||
| 20 | other obligational or expenditure
authority are not available | ||||||
| 21 | from which to incur the obligation or make
the expenditure, the | ||||||
| 22 | Comptroller shall refuse to draw a warrant.
| ||||||
| 23 | (d) The Comptroller shall examine each voucher and all | ||||||
| 24 | other documentation
required to accompany the voucher, and | ||||||
| 25 | shall ascertain whether the voucher
and documentation meet all | ||||||
| 26 | requirements established by or pursuant to law.
If the | ||||||
| |||||||
| |||||||
| 1 | Comptroller determines that the voucher and documentation do | ||||||
| 2 | not
meet applicable requirements established by or pursuant to | ||||||
| 3 | law, he shall
refuse to draw a warrant. As used in this | ||||||
| 4 | Section, "requirements established
by or pursuant to law" | ||||||
| 5 | includes statutory enactments and requirements established
by | ||||||
| 6 | rules and regulations adopted pursuant to this Act.
| ||||||
| 7 | (e) Prior to drawing a warrant, the Comptroller may review | ||||||
| 8 | the voucher,
any documentation accompanying the voucher, and | ||||||
| 9 | any other documentation
related to the transaction on file with | ||||||
| 10 | him, and determine if the transaction
is in accordance with the | ||||||
| 11 | law. If based on his review the Comptroller has
reason to | ||||||
| 12 | believe that such transaction is not in accordance with the | ||||||
| 13 | law,
he shall refuse to draw a warrant.
| ||||||
| 14 | (f) Where the Comptroller refuses to draw a warrant | ||||||
| 15 | pursuant to this Section,
he shall maintain separate records of | ||||||
| 16 | such transactions.
| ||||||
| 17 | (g) State agencies shall have the principal responsibility | ||||||
| 18 | for the preaudit
of their encumbrances, expenditures, and other | ||||||
| 19 | transactions as otherwise
required by law.
| ||||||
| 20 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 21 | Section 20. The State Treasurer Act is amended by changing | ||||||
| 22 | Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
| ||||||
| 23 | (15 ILCS 505/0.02)
| ||||||
| 24 | Sec. 0.02. Transfer of powers. The rights, powers, duties, | ||||||
| |||||||
| |||||||
| 1 | and functions vested in the Department of
Financial | ||||||
| 2 | Institutions to administer the Uniform Disposition of | ||||||
| 3 | Unclaimed
Property Act (superseded by the Revised Uniform | ||||||
| 4 | Unclaimed Property Act) are transferred to the State Treasurer | ||||||
| 5 | on July 1, 1999; provided,
however, that the rights, powers, | ||||||
| 6 | duties, and functions
involving the examination of the records | ||||||
| 7 | of any person that the State Treasurer
has reason to believe | ||||||
| 8 | has failed to report properly under this Act shall be
| ||||||
| 9 | transferred to the Office of Banks and Real Estate if the | ||||||
| 10 | person is
regulated by the Office of Banks and Real Estate | ||||||
| 11 | under the Illinois Banking
Act, the Corporate Fiduciary Act, | ||||||
| 12 | the Foreign Banking Office Act, the Illinois
Savings and Loan | ||||||
| 13 | Act of 1985, or the Savings Bank Act
and shall be retained by | ||||||
| 14 | the Department of Financial Institutions if the
person is doing | ||||||
| 15 | business in the State under the supervision of the Department
| ||||||
| 16 | of Financial Institutions, the National Credit Union | ||||||
| 17 | Administration,
the Office of Thrift Supervision, or the | ||||||
| 18 | Comptroller of the Currency.
| ||||||
| 19 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 20 | (15 ILCS 505/0.03)
| ||||||
| 21 | Sec. 0.03. Transfer of personnel.
| ||||||
| 22 | (a) Except as provided in subsection (b), personnel | ||||||
| 23 | employed by the
Department of Financial Institutions on June | ||||||
| 24 | 30, 1999 to perform duties
pertaining to the administration of | ||||||
| 25 | the Uniform Disposition of Unclaimed
Property
Act (superseded | ||||||
| |||||||
| |||||||
| 1 | by the Revised Uniform Unclaimed Property Act) are transferred | ||||||
| 2 | to the State Treasurer on July 1, 1999.
| ||||||
| 3 | (b) In the case of a person employed by the Department of | ||||||
| 4 | Financial
Institutions to perform both duties pertaining to the | ||||||
| 5 | administration of the Uniform Disposition of Unclaimed | ||||||
| 6 | Property Act (superseded by the Revised Uniform Unclaimed | ||||||
| 7 | Property Act) and duties pertaining to a
function retained by | ||||||
| 8 | the Department of Financial Institutions, the State
Treasurer, | ||||||
| 9 | in consultation with the Director of Financial Institutions, | ||||||
| 10 | shall
determine whether to transfer the employee to the Office | ||||||
| 11 | of the State
Treasurer; until this determination has been made, | ||||||
| 12 | the transfer shall not take
effect.
| ||||||
| 13 | (c) The rights of State employees, the State, and its | ||||||
| 14 | agencies under the
Personnel Code and applicable collective | ||||||
| 15 | bargaining agreements and retirement
plans are not affected by | ||||||
| 16 | this amendatory Act of 1999, except that all
positions | ||||||
| 17 | transferred to the State Treasurer shall be subject to the | ||||||
| 18 | State
Treasurer Employment Code effective July 1, 2000.
| ||||||
| 19 | All transferred employees who are members of
collective | ||||||
| 20 | bargaining units shall retain their seniority, continuous | ||||||
| 21 | service,
salary, and accrued benefits. During the pendency of | ||||||
| 22 | the existing collective
bargaining agreement, the rights | ||||||
| 23 | provided for under that agreement and
memoranda and supplements | ||||||
| 24 | to that agreement, including but not limited to, the
rights of | ||||||
| 25 | employees performing duties pertaining to the administration | ||||||
| 26 | of the
Uniform Disposition of Unclaimed Property Act | ||||||
| |||||||
| |||||||
| 1 | (superseded by the Revised Uniform Unclaimed Property Act) to | ||||||
| 2 | positions in other State
agencies and the right of employees in | ||||||
| 3 | other State agencies covered by the
agreement to positions | ||||||
| 4 | performing duties pertaining to the administration of
the | ||||||
| 5 | Uniform Disposition of Unclaimed Property Act (superseded by | ||||||
| 6 | the Revised Uniform Unclaimed Property Act), shall not be | ||||||
| 7 | abridged.
| ||||||
| 8 | The State Treasurer shall
continue to honor during their | ||||||
| 9 | pendency all bargaining agreements
in effect at the time of the | ||||||
| 10 | transfer and to recognize all collective
bargaining | ||||||
| 11 | representatives for the employees who perform or will perform
| ||||||
| 12 | functions transferred by this amendatory Act of 1999. For all | ||||||
| 13 | purposes with
respect to the management of the existing | ||||||
| 14 | agreement and the
negotiation and management of any successor | ||||||
| 15 | agreements, the State Treasurer
shall be deemed to
be the | ||||||
| 16 | employer of employees who perform or will perform functions | ||||||
| 17 | transferred
to the Office of the State Treasurer by
this | ||||||
| 18 | amendatory Act of 1999; provided that the Illinois Department | ||||||
| 19 | of Central
Management Services shall be a party to any
| ||||||
| 20 | grievance or arbitration proceeding held pursuant to the | ||||||
| 21 | provisions of the
collective bargaining agreement which | ||||||
| 22 | involves the movement
of employees from the Office of the State | ||||||
| 23 | Treasurer to an
agency under the jurisdiction of the Governor | ||||||
| 24 | covered by the agreement.
| ||||||
| 25 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | (15 ILCS 505/0.04)
| ||||||
| 2 | Sec. 0.04. Transfer of property.
| ||||||
| 3 | (a) Except as provided in subsection (b), all real and | ||||||
| 4 | personal property,
including but not limited to all books, | ||||||
| 5 | records, and documents, and all
unexpended appropriations and | ||||||
| 6 | pending business
pertaining to the administration of the | ||||||
| 7 | Uniform Disposition of Unclaimed
Property Act (superseded by | ||||||
| 8 | the Revised Uniform Unclaimed Property Act) shall be | ||||||
| 9 | transferred and delivered to the State Treasurer
effective July | ||||||
| 10 | 1, 1999.
| ||||||
| 11 | (b) In the case of books, records, or documents that | ||||||
| 12 | pertain both to
the administration of the Uniform Disposition | ||||||
| 13 | of Unclaimed Property Act (superseded by the Revised Uniform | ||||||
| 14 | Unclaimed Property Act) and to
a function retained by the | ||||||
| 15 | Department of Financial Institutions, the State
Treasurer, in | ||||||
| 16 | consultation with the Director of Financial Institutions, | ||||||
| 17 | shall
determine whether the books, records, or documents shall | ||||||
| 18 | be transferred,
copied, or left with the Department of | ||||||
| 19 | Financial Institutions; until this
determination has been | ||||||
| 20 | made, the transfer shall not take effect.
| ||||||
| 21 | In the case of property or an unexpended appropriation that | ||||||
| 22 | pertains both to
the administration of the Uniform Disposition | ||||||
| 23 | of Unclaimed Property Act (superseded by the Revised Uniform | ||||||
| 24 | Unclaimed Property Act) and to
a function retained by the | ||||||
| 25 | Department of Financial Institutions, the State
Treasurer, in | ||||||
| 26 | consultation with the Director of Financial Institutions, | ||||||
| |||||||
| |||||||
| 1 | shall
determine whether the property or unexpended | ||||||
| 2 | appropriation shall be
transferred, divided, or left with the | ||||||
| 3 | Department of Financial Institutions;
until this determination | ||||||
| 4 | has been made (and, in the case of an unexpended
appropriation, | ||||||
| 5 | notice of the determination has been filed with the State
| ||||||
| 6 | Comptroller), the transfer shall not take effect.
| ||||||
| 7 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 8 | (15 ILCS 505/0.05)
| ||||||
| 9 | Sec. 0.05. Rules and standards.
| ||||||
| 10 | (a) The rules and standards of the Department of Financial | ||||||
| 11 | Institutions that
are in effect on June 30, 1999 and pertain to | ||||||
| 12 | the administration of the
Uniform Disposition of Unclaimed | ||||||
| 13 | Property Act (superseded by the Revised Uniform Unclaimed | ||||||
| 14 | Property Act) shall become the rules and
standards of the State | ||||||
| 15 | Treasurer on July 1, 1999 and shall continue in
effect until | ||||||
| 16 | amended or repealed by the State Treasurer.
| ||||||
| 17 | (b) Any rules pertaining to the administration of the | ||||||
| 18 | Uniform Disposition of
Unclaimed Property Act (superseded by | ||||||
| 19 | the Revised Uniform Unclaimed Property Act) that have been | ||||||
| 20 | proposed by the Department of Financial
Institutions but have | ||||||
| 21 | not taken effect or been finally adopted by June 30,
1999 shall | ||||||
| 22 | become proposed rules of the State Treasurer on July 1, 1999, | ||||||
| 23 | and
any rulemaking procedures that have already been completed | ||||||
| 24 | by the Department of
Financial Institutions need not be | ||||||
| 25 | repeated.
| ||||||
| |||||||
| |||||||
| 1 | (c) As soon as practical after July 1, 1999, the State | ||||||
| 2 | Treasurer shall
revise and clarify the rules transferred to it | ||||||
| 3 | under this amendatory Act of
1999 to reflect the reorganization | ||||||
| 4 | of rights, powers, duties, and functions
effected by this | ||||||
| 5 | amendatory Act of 1999 using the procedures for recodification
| ||||||
| 6 | of rules available under the Illinois Administrative Procedure | ||||||
| 7 | Act, except that
existing title, part, and section numbering | ||||||
| 8 | for the affected rules may be
retained.
| ||||||
| 9 | (d) As soon as practical after July 1, 1999, the Office of | ||||||
| 10 | Banks and Real
Estate and the Office of the State Treasurer | ||||||
| 11 | shall jointly promulgate rules to
reflect the transfer of | ||||||
| 12 | examination functions to the Office of Banks and Real
Estate | ||||||
| 13 | under this amendatory Act of 1999 using the procedures | ||||||
| 14 | available under
the Illinois Administrative Procedure Act.
| ||||||
| 15 | (e) As soon as practical after July 1, 1999, the Department | ||||||
| 16 | of Financial
Institutions and the Office of the State Treasurer | ||||||
| 17 | shall jointly promulgate
rules to reflect the retention of | ||||||
| 18 | examination functions by the Department of
Financial | ||||||
| 19 | Institutions under this amendatory Act of 1999 using the | ||||||
| 20 | procedures
available under the Illinois Administrative | ||||||
| 21 | Procedure Act.
| ||||||
| 22 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 23 | (15 ILCS 505/0.06)
| ||||||
| 24 | Sec. 0.06. Savings provisions.
| ||||||
| 25 | (a) The rights, powers, duties, and functions transferred | ||||||
| |||||||
| |||||||
| 1 | to the State
Treasurer or the Commissioner of Banks and Real | ||||||
| 2 | Estate by this amendatory Act
of 1999 shall be vested in and | ||||||
| 3 | exercised by
the State Treasurer or the Commissioner of Banks | ||||||
| 4 | and Real Estate subject to the
provisions of this amendatory | ||||||
| 5 | Act of 1999.
An act done by the State Treasurer or the | ||||||
| 6 | Commissioner of Banks and Real Estate
or an officer, employee, | ||||||
| 7 | or agent of the
State Treasurer or the Commissioner of Banks | ||||||
| 8 | and Real Estate in the exercise of
the transferred rights, | ||||||
| 9 | powers, duties, or
functions shall have the same legal effect | ||||||
| 10 | as if done by the Department of
Financial Institutions or an | ||||||
| 11 | officer, employee, or agent of the Department of
Financial | ||||||
| 12 | Institutions prior to the effective date of this amendatory Act | ||||||
| 13 | of
1999.
| ||||||
| 14 | (b) The transfer of rights, powers, duties, and functions | ||||||
| 15 | to the State
Treasurer or the Commissioner of Banks and Real | ||||||
| 16 | Estate under this amendatory
Act of 1999 does not invalidate | ||||||
| 17 | any previous
action taken by or in respect to the Department of | ||||||
| 18 | Financial Institutions or
its officers, employees, or agents. | ||||||
| 19 | References to the Department of Financial
Institutions or its | ||||||
| 20 | officers, employees or agents in any document, contract,
| ||||||
| 21 | agreement, or law shall, in
appropriate contexts, be deemed to | ||||||
| 22 | refer to the State Treasurer or the
Commissioner of Banks and | ||||||
| 23 | Real Estate or the officers, employees, or
agents of the State | ||||||
| 24 | Treasurer or the Commissioner of Banks and Real Estate.
| ||||||
| 25 | (c) The transfer of rights, powers, duties, and functions | ||||||
| 26 | from the
Department of Financial Institutions to the State
| ||||||
| |||||||
| |||||||
| 1 | Treasurer or the Commissioner of Banks and Real Estate under | ||||||
| 2 | this amendatory
Act of 1999 does not affect the rights,
| ||||||
| 3 | obligations, or duties of any other person or entity, including | ||||||
| 4 | any civil or
criminal penalties
applicable thereto, arising out | ||||||
| 5 | of those transferred rights, powers, duties,
and functions.
| ||||||
| 6 | (d) With respect to matters that pertain to a right, power, | ||||||
| 7 | duty, or
function transferred to the State Treasurer under this | ||||||
| 8 | amendatory Act of 1999:
| ||||||
| 9 | (1) Beginning July 1, 1999, any report or notice that | ||||||
| 10 | was previously
required to be made or given by any person | ||||||
| 11 | to the Department of Financial
Institutions or any of its | ||||||
| 12 | officers, employees, or agents under the Uniform
| ||||||
| 13 | Disposition of Unclaimed Property Act (superseded by the | ||||||
| 14 | Revised Uniform Unclaimed Property Act) or rules | ||||||
| 15 | promulgated pursuant to that Act
shall be made or given in | ||||||
| 16 | the same manner to the State Treasurer or his or her
| ||||||
| 17 | appropriate officer, employee, or agent.
| ||||||
| 18 | (2) Beginning July 1, 1999, any document that was | ||||||
| 19 | previously required
to
be furnished or served by any person | ||||||
| 20 | to or upon the Department of Financial
Institutions or any | ||||||
| 21 | of its officers, employees, or agents under the Uniform
| ||||||
| 22 | Disposition of Unclaimed Property Act (superseded by the | ||||||
| 23 | Revised Uniform Unclaimed Property Act) or rules | ||||||
| 24 | promulgated pursuant to that Act
shall be furnished or | ||||||
| 25 | served in the same manner to or upon the State Treasurer
or | ||||||
| 26 | his or her appropriate officer, employee, or agent.
| ||||||
| |||||||
| |||||||
| 1 | (e) This amendatory Act of 1999 does not affect any act | ||||||
| 2 | done, ratified, or
canceled, any right occurring or | ||||||
| 3 | established, or any action or proceeding had
or commenced in an | ||||||
| 4 | administrative, civil, or criminal cause before July 1, 1999. | ||||||
| 5 | Any such action or proceeding that pertains to the Uniform | ||||||
| 6 | Disposition
of Unclaimed Property Act (superseded by the | ||||||
| 7 | Revised Uniform Unclaimed Property Act) or rules promulgated | ||||||
| 8 | pursuant to that Act and that is
pending on that date may be | ||||||
| 9 | prosecuted, defended, or continued by the State
Treasurer.
| ||||||
| 10 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 11 | Section 25. The Financial Institutions Code is amended by | ||||||
| 12 | changing Sections 7 and 18.1 as follows:
| ||||||
| 13 | (20 ILCS 1205/7) (from Ch. 17, par. 108)
| ||||||
| 14 | Sec. 7.
The provisions of "The Illinois Administrative | ||||||
| 15 | Procedure
Act", as now or hereafter amended, are hereby | ||||||
| 16 | expressly adopted and
incorporated herein as though a part of | ||||||
| 17 | this Act, and shall apply to all
administrative rules and | ||||||
| 18 | procedures of the Director and the Department
of Financial | ||||||
| 19 | Institutions under this Act, except that the provisions of
the | ||||||
| 20 | Administrative Procedure Act regarding contested cases shall | ||||||
| 21 | not
apply to actions of the Director under Section 15.1 of "An | ||||||
| 22 | Act in
relation to the definition, licensing and regulation of | ||||||
| 23 | community
currency exchanges and ambulatory currency | ||||||
| 24 | exchanges, and the operators
and employees thereof, and to make | ||||||
| |||||||
| |||||||
| 1 | an appropriation therefor, and to
provide penalties and | ||||||
| 2 | remedies for the violation thereof", approved June
30, 1943, as | ||||||
| 3 | amended, or Sections 8 and 61 of "The Illinois
Credit Union | ||||||
| 4 | Act, or to hearings under Section 20 of the Uniform Disposition | ||||||
| 5 | of Unclaimed Property Act ".
| ||||||
| 6 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 7 | (20 ILCS 1205/18.1)
| ||||||
| 8 | Sec. 18.1. Transfer of administration of Uniform | ||||||
| 9 | Disposition of Unclaimed
Property Act to State Treasurer. The | ||||||
| 10 | rights, powers, duties, and functions
vested in the Department | ||||||
| 11 | of Financial Institutions to administer the Uniform
| ||||||
| 12 | Disposition of Unclaimed Property Act (superseded by the | ||||||
| 13 | Revised Uniform Unclaimed Property Act) are transferred to the | ||||||
| 14 | State Treasurer on
July 1, 1999 in accordance with Sections | ||||||
| 15 | 0.02 through 0.06 of the State
Treasurer Act; provided, | ||||||
| 16 | however, that the rights, powers, duties, and
functions | ||||||
| 17 | involving the examination of the records of any person that the | ||||||
| 18 | State
Treasurer has reason to believe has failed to report | ||||||
| 19 | properly under this Act
shall be transferred to the Office of | ||||||
| 20 | Banks and Real Estate if the person is
regulated by the Office | ||||||
| 21 | of Banks and Real Estate under the Illinois Banking
Act, the | ||||||
| 22 | Corporate Fiduciary Act, the Foreign Banking Office Act, the | ||||||
| 23 | Illinois
Savings and Loan Act of 1985, or the Savings Bank Act | ||||||
| 24 | and shall be retained by
the Department of Financial | ||||||
| 25 | Institutions if the person is doing business in the
State under | ||||||
| |||||||
| |||||||
| 1 | the supervision of the Department of Financial Institutions, | ||||||
| 2 | the
National Credit Union Administration, the Office of Thrift | ||||||
| 3 | Supervision, or the
Comptroller of the Currency.
| ||||||
| 4 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 5 | Section 30. The State Finance Act is amended by changing | ||||||
| 6 | Sections 6b-1 and 8.12 as follows:
| ||||||
| 7 | (30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)
| ||||||
| 8 | Sec. 6b-1.
There shall be paid into the State Pensions Fund | ||||||
| 9 | the funds and
proceeds from the sale of abandoned property as | ||||||
| 10 | provided in
Section 18 of the Uniform Disposition of Unclaimed | ||||||
| 11 | Property Act, enacted by the Seventy-second General Assembly | ||||||
| 12 | the Revised Uniform Unclaimed Property Act.
| ||||||
| 13 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 14 | (30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
| ||||||
| 15 | Sec. 8.12. State Pensions Fund.
| ||||||
| 16 | (a) The moneys in the State Pensions Fund shall be used | ||||||
| 17 | exclusively
for the administration of the Revised Uniform | ||||||
| 18 | Disposition of Unclaimed Property Act and
for the expenses | ||||||
| 19 | incurred by the Auditor General for administering the | ||||||
| 20 | provisions of Section 2-8.1 of the Illinois State Auditing Act | ||||||
| 21 | and for operational expenses of the Office of the State | ||||||
| 22 | Treasurer and for the funding of the unfunded liabilities of | ||||||
| 23 | the designated retirement systems. Beginning in State fiscal | ||||||
| |||||||
| |||||||
| 1 | year 2020, payments to the designated retirement systems under | ||||||
| 2 | this Section shall be in addition to, and not in lieu of, any | ||||||
| 3 | State contributions required under the Illinois Pension Code.
| ||||||
| 4 | "Designated retirement systems" means:
| ||||||
| 5 | (1) the State Employees' Retirement System of | ||||||
| 6 | Illinois;
| ||||||
| 7 | (2) the Teachers' Retirement System of the State of | ||||||
| 8 | Illinois;
| ||||||
| 9 | (3) the State Universities Retirement System;
| ||||||
| 10 | (4) the Judges Retirement System of Illinois; and
| ||||||
| 11 | (5) the General Assembly Retirement System.
| ||||||
| 12 | (b) Each year the General Assembly may make appropriations | ||||||
| 13 | from
the State Pensions Fund for the administration of the | ||||||
| 14 | Revised Uniform
Disposition of Unclaimed Property Act.
| ||||||
| 15 | Each month, the Commissioner of the Office of Banks and | ||||||
| 16 | Real Estate shall
certify to the State Treasurer the actual | ||||||
| 17 | expenditures that the Office of
Banks and Real Estate incurred | ||||||
| 18 | conducting unclaimed property examinations under
the Uniform | ||||||
| 19 | Disposition of Unclaimed Property Act during the immediately
| ||||||
| 20 | preceding month. Within a reasonable
time following the | ||||||
| 21 | acceptance of such certification by the State Treasurer, the
| ||||||
| 22 | State Treasurer shall pay from its appropriation from the State | ||||||
| 23 | Pensions Fund
to the Bank and Trust Company Fund, the Savings | ||||||
| 24 | Bank Regulatory Fund, and the Residential Finance
Regulatory | ||||||
| 25 | Fund an amount equal to the expenditures incurred by each Fund | ||||||
| 26 | for
that month.
| ||||||
| |||||||
| |||||||
| 1 | Each month, the Director of Financial Institutions shall
| ||||||
| 2 | certify to the State Treasurer the actual expenditures that the | ||||||
| 3 | Department of
Financial Institutions incurred conducting | ||||||
| 4 | unclaimed property examinations
under the Uniform Disposition | ||||||
| 5 | of Unclaimed Property Act during the immediately
preceding | ||||||
| 6 | month. Within a reasonable time following the acceptance of | ||||||
| 7 | such
certification by the State Treasurer, the State Treasurer | ||||||
| 8 | shall pay from its
appropriation from the State Pensions Fund
| ||||||
| 9 | to the Financial Institution Fund and the Credit Union Fund
an | ||||||
| 10 | amount equal to the expenditures incurred by each Fund for
that | ||||||
| 11 | month. | ||||||
| 12 | (c) As soon as possible after July 30, 2004 (the effective | ||||||
| 13 | date of Public Act 93-839), the General Assembly shall | ||||||
| 14 | appropriate from the State Pensions Fund (1) to the State | ||||||
| 15 | Universities Retirement System the amount certified under | ||||||
| 16 | Section 15-165 during the prior year, (2) to the Judges | ||||||
| 17 | Retirement System of Illinois the amount certified under | ||||||
| 18 | Section 18-140 during the prior year, and (3) to the General | ||||||
| 19 | Assembly Retirement System the amount certified under Section | ||||||
| 20 | 2-134 during the prior year as part of the required
State | ||||||
| 21 | contributions to each of those designated retirement systems; | ||||||
| 22 | except that amounts appropriated under this subsection (c) in | ||||||
| 23 | State fiscal year 2005 shall not reduce the amount in the State | ||||||
| 24 | Pensions Fund below $5,000,000. If the amount in the State | ||||||
| 25 | Pensions Fund does not exceed the sum of the amounts certified | ||||||
| 26 | in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, | ||||||
| |||||||
| |||||||
| 1 | the amount paid to each designated retirement system under this | ||||||
| 2 | subsection shall be reduced in proportion to the amount | ||||||
| 3 | certified by each of those designated retirement systems.
| ||||||
| 4 | (c-5) For fiscal years 2006 through 2019, the General | ||||||
| 5 | Assembly shall appropriate from the State Pensions Fund to the | ||||||
| 6 | State Universities Retirement System the amount estimated to be | ||||||
| 7 | available during the fiscal year in the State Pensions Fund; | ||||||
| 8 | provided, however, that the amounts appropriated under this | ||||||
| 9 | subsection (c-5) shall not reduce the amount in the State | ||||||
| 10 | Pensions Fund below $5,000,000.
| ||||||
| 11 | (c-6) For fiscal year 2020 and each fiscal year thereafter, | ||||||
| 12 | as soon as may be practical after any money is deposited into | ||||||
| 13 | the State Pensions Fund from the Unclaimed Property Trust Fund, | ||||||
| 14 | the State Treasurer shall apportion the deposited amount among | ||||||
| 15 | the designated retirement systems as defined in subsection (a) | ||||||
| 16 | to reduce their actuarial reserve deficiencies. The State | ||||||
| 17 | Comptroller and State Treasurer shall pay the apportioned | ||||||
| 18 | amounts to the designated retirement systems to fund the | ||||||
| 19 | unfunded liabilities of the designated retirement systems. The | ||||||
| 20 | amount apportioned to each designated retirement system shall | ||||||
| 21 | constitute a portion of the amount estimated to be available | ||||||
| 22 | for appropriation from the State Pensions Fund that is the same | ||||||
| 23 | as that retirement system's portion of the total actual reserve | ||||||
| 24 | deficiency of the systems, as determined annually by the | ||||||
| 25 | Governor's Office of Management and Budget at the request of | ||||||
| 26 | the State Treasurer. The amounts apportioned under this | ||||||
| |||||||
| |||||||
| 1 | subsection shall not reduce the amount in the State Pensions | ||||||
| 2 | Fund below $5,000,000. | ||||||
| 3 | (d) The
Governor's Office of Management and Budget shall | ||||||
| 4 | determine the individual and total
reserve deficiencies of the | ||||||
| 5 | designated retirement systems. For this purpose,
the
| ||||||
| 6 | Governor's Office of Management and Budget shall utilize the | ||||||
| 7 | latest available audit and actuarial
reports of each of the | ||||||
| 8 | retirement systems and the relevant reports and
statistics of | ||||||
| 9 | the Public Employee Pension Fund Division of the Department of
| ||||||
| 10 | Insurance.
| ||||||
| 11 | (d-1) As soon as practicable after March 5, 2004 (the | ||||||
| 12 | effective date of Public Act 93-665), the Comptroller shall
| ||||||
| 13 | direct and the Treasurer shall transfer from the State Pensions | ||||||
| 14 | Fund to
the General Revenue Fund, as funds become available, a | ||||||
| 15 | sum equal to the
amounts that would have been paid
from the | ||||||
| 16 | State Pensions Fund to the Teachers' Retirement System of the | ||||||
| 17 | State
of Illinois,
the State Universities Retirement System, | ||||||
| 18 | the Judges Retirement
System of Illinois, the
General Assembly | ||||||
| 19 | Retirement System, and the State Employees'
Retirement System
| ||||||
| 20 | of Illinois
after March 5, 2004 (the effective date of Public | ||||||
| 21 | Act 93-665) during the remainder of fiscal year 2004 to the
| ||||||
| 22 | designated retirement systems from the appropriations provided | ||||||
| 23 | for in
this Section if the transfers provided in Section 6z-61 | ||||||
| 24 | had not
occurred. The transfers described in this subsection | ||||||
| 25 | (d-1) are to
partially repay the General Revenue Fund for the | ||||||
| 26 | costs associated with
the bonds used to fund the moneys | ||||||
| |||||||
| |||||||
| 1 | transferred to the designated
retirement systems under Section | ||||||
| 2 | 6z-61.
| ||||||
| 3 | (e) The changes to this Section made by Public Act 88-593 | ||||||
| 4 | shall
first apply to distributions from the Fund for State | ||||||
| 5 | fiscal year 1996.
| ||||||
| 6 | (Source: P.A. 99-8, eff. 7-9-15; 99-78, eff. 7-20-15; 99-523, | ||||||
| 7 | eff. 6-30-16; 100-22, eff. 1-1-18; 100-23, eff. 7-6-17; | ||||||
| 8 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
| ||||||
| 9 | Section 35. The State Officers and Employees Money | ||||||
| 10 | Disposition Act is amended by changing Section 2 as follows:
| ||||||
| 11 | (30 ILCS 230/2) (from Ch. 127, par. 171)
| ||||||
| 12 | Sec. 2. Accounts of money received; payment into State | ||||||
| 13 | treasury.
| ||||||
| 14 | (a) Every officer, board, commission, commissioner, | ||||||
| 15 | department,
institution, arm or agency brought within the | ||||||
| 16 | provisions of this Act by
Section 1 shall keep in proper books | ||||||
| 17 | a detailed itemized account
of all moneys received for or on | ||||||
| 18 | behalf of the State of Illinois, showing
the date
of receipt, | ||||||
| 19 | the payor, and purpose and amount, and the date and manner
of | ||||||
| 20 | disbursement as hereinafter provided, and, unless a different | ||||||
| 21 | time of
payment is expressly provided by law or by rules or | ||||||
| 22 | regulations promulgated
under subsection (b) of this Section, | ||||||
| 23 | shall pay into the State treasury
the gross amount of money so | ||||||
| 24 | received on the day of actual physical
receipt with respect to | ||||||
| |||||||
| |||||||
| 1 | any single item of receipt exceeding $10,000,
within 24 hours | ||||||
| 2 | of actual physical receipt with respect to an accumulation
of | ||||||
| 3 | receipts of $10,000 or more, or within 48 hours of actual | ||||||
| 4 | physical
receipt with respect to an accumulation of receipts | ||||||
| 5 | exceeding $500 but less
than $10,000, disregarding holidays, | ||||||
| 6 | Saturdays and Sundays, after the receipt
of same, without any | ||||||
| 7 | deduction on account of salaries, fees, costs, charges,
| ||||||
| 8 | expenses or claims of any description whatever; provided that:
| ||||||
| 9 | (1) the provisions of (i) Section 2505-475 of the
| ||||||
| 10 | Department
of Revenue Law (20 ILCS 2505/2505-475), (ii) any | ||||||
| 11 | specific taxing statute
authorizing a claim for
credit | ||||||
| 12 | procedure instead of the actual making of refunds, (iii) | ||||||
| 13 | Section 505 of
the Illinois Controlled Substances
Act, (iv) | ||||||
| 14 | Section 85 of the Methamphetamine Control and Community | ||||||
| 15 | Protection Act, authorizing the Director of
State Police to | ||||||
| 16 | dispose of forfeited property, which includes the sale and
| ||||||
| 17 | disposition of the proceeds of the sale of forfeited | ||||||
| 18 | property, and the
Department of Central Management | ||||||
| 19 | Services to be reimbursed for costs incurred
with the sales | ||||||
| 20 | of forfeited vehicles, boats or aircraft and to pay to bona | ||||||
| 21 | fide
or innocent purchasers, conditional sales vendors or | ||||||
| 22 | mortgagees of such
vehicles, boats or aircraft their | ||||||
| 23 | interest in such vehicles, boats or aircraft,
and (v)
| ||||||
| 24 | Section 6b-2 of the State Finance Act,
establishing | ||||||
| 25 | procedures for handling cash receipts from the sale of | ||||||
| 26 | pari-mutuel
wagering tickets, shall not be deemed to be in | ||||||
| |||||||
| |||||||
| 1 | conflict with the requirements
of this Section;
| ||||||
| 2 | (2) any fees received by the State
Registrar of Vital | ||||||
| 3 | Records pursuant to the Vital Records Act which are
| ||||||
| 4 | insufficient in amount may be returned by the Registrar as | ||||||
| 5 | provided in that
Act;
| ||||||
| 6 | (3) any fees received by the Department of
Public | ||||||
| 7 | Health under the Food Handling Regulation Enforcement Act | ||||||
| 8 | that are
submitted for renewal of an expired food service | ||||||
| 9 | sanitation manager certificate
may be returned by the | ||||||
| 10 | Director as provided in that Act;
| ||||||
| 11 | (3.5) the State Treasurer may permit the deduction of | ||||||
| 12 | fees by
third-party unclaimed property examiners from the | ||||||
| 13 | property recovered by the
examiners for the State of | ||||||
| 14 | Illinois during examinations of holders located
outside | ||||||
| 15 | the State under which the Office of the Treasurer has | ||||||
| 16 | agreed to pay for
the examinations based upon a percentage, | ||||||
| 17 | set by rule by the State Treasurer in
accordance with the | ||||||
| 18 | Illinois Administrative Procedure Revised Uniform | ||||||
| 19 | Unclaimed Property Act, of the property
recovered during | ||||||
| 20 | the
examination; and
| ||||||
| 21 | (4) if the amount of money received
does not exceed | ||||||
| 22 | $500, such money may be retained and need not be paid
into | ||||||
| 23 | the State treasury until the total amount of money so | ||||||
| 24 | received
exceeds $500, or until the next succeeding 1st or | ||||||
| 25 | 15th day of each month
(or until the next business day if | ||||||
| 26 | these days fall on Sunday or a
holiday), whichever is | ||||||
| |||||||
| |||||||
| 1 | earlier, at which earlier time such money shall
be paid | ||||||
| 2 | into the State treasury, except that if a local bank or | ||||||
| 3 | savings
and loan association account has been authorized by | ||||||
| 4 | law, any balances shall
be paid into the State treasury on | ||||||
| 5 | Monday of each week if more than $500
is to be deposited in | ||||||
| 6 | any fund.
| ||||||
| 7 | Single items of receipt exceeding $10,000 received after 2 p.m. | ||||||
| 8 | on a working
day may be deemed to have been received on the | ||||||
| 9 | next working day for purposes of
fulfilling the requirement | ||||||
| 10 | that the item be deposited on the day of actual
physical | ||||||
| 11 | receipt.
| ||||||
| 12 | No money belonging to or left for the use of the State | ||||||
| 13 | shall be expended or
applied except in consequence of an | ||||||
| 14 | appropriation made by law and upon the
warrant of the State | ||||||
| 15 | Comptroller. However, payments made by the Comptroller
to | ||||||
| 16 | persons by direct deposit need not be made upon the warrant of | ||||||
| 17 | the
Comptroller, but if not made upon a warrant, shall be made | ||||||
| 18 | in accordance
with Section 9.02 of the State Comptroller Act. | ||||||
| 19 | All moneys so paid
into the State treasury shall, unless | ||||||
| 20 | required by some statute to be held in
the State treasury in a | ||||||
| 21 | separate or special fund, be covered into the General
Revenue | ||||||
| 22 | Fund in the State treasury. Moneys received
in the form of | ||||||
| 23 | checks, drafts or similar instruments shall be properly
| ||||||
| 24 | endorsed, if necessary, and delivered to the State Treasurer | ||||||
| 25 | for
collection. The State Treasurer shall remit such collected | ||||||
| 26 | funds to the
depositing officer, board, commission, | ||||||
| |||||||
| |||||||
| 1 | commissioner, department,
institution, arm or agency by | ||||||
| 2 | Treasurers Draft or through electronic funds
transfer. The | ||||||
| 3 | draft or notification of the electronic funds
transfer shall be | ||||||
| 4 | provided to the State Comptroller to allow deposit into
the | ||||||
| 5 | appropriate fund.
| ||||||
| 6 | (b) Different time periods for the payment of public funds | ||||||
| 7 | into the State
treasury or to the State Treasurer, in excess of | ||||||
| 8 | the periods established
in subsection (a) of this Section, but | ||||||
| 9 | not in excess of 30 days after receipt
of such funds, may be | ||||||
| 10 | established and revised from time to time by rules or
| ||||||
| 11 | regulations promulgated jointly by the State Treasurer and the | ||||||
| 12 | State
Comptroller in accordance with the Illinois | ||||||
| 13 | Administrative
Procedure Act. The different
time periods | ||||||
| 14 | established by rule or regulation under this subsection may | ||||||
| 15 | vary
according to the nature and amounts of the funds received, | ||||||
| 16 | the locations at
which the funds are received, whether | ||||||
| 17 | compliance with the deposit requirements
specified in | ||||||
| 18 | subsection (a) of this Section would be cost effective, and | ||||||
| 19 | such
other circumstances and conditions as the promulgating | ||||||
| 20 | authorities consider to
be appropriate. The Treasurer and the | ||||||
| 21 | Comptroller shall review all such
different time
periods | ||||||
| 22 | established pursuant to this subsection every 2 years from the
| ||||||
| 23 | establishment thereof and upon such review, unless it is | ||||||
| 24 | determined that it
is economically unfeasible for the agency to | ||||||
| 25 | comply with the provisions of
subsection (a), shall repeal such | ||||||
| 26 | different time period.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 2 | (35 ILCS 5/225 rep.) | ||||||
| 3 | Section 40. The Illinois Income Tax Act is amended by | ||||||
| 4 | repealing Section 225.
| ||||||
| 5 | Section 45. The Counties Code is amended by changing | ||||||
| 6 | Section 3-3034 as follows:
| ||||||
| 7 | (55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)
| ||||||
| 8 | Sec. 3-3034. Disposition of body. After the inquest the | ||||||
| 9 | coroner
may deliver the body or human remains of the deceased | ||||||
| 10 | to the family of the deceased or, if there are no family | ||||||
| 11 | members to accept the body or the remains, then to friends of | ||||||
| 12 | the deceased, if there be any, but
if not, the coroner shall | ||||||
| 13 | cause the body or the remains to be decently buried, cremated, | ||||||
| 14 | or donated for medical science purposes, the expenses to be | ||||||
| 15 | paid
from the property of the deceased, if there is sufficient, | ||||||
| 16 | if not, by the
county. The coroner may not approve the | ||||||
| 17 | cremation or donation of the body if it is necessary to | ||||||
| 18 | preserve the body for law enforcement purposes. If the State | ||||||
| 19 | Treasurer, pursuant to the Revised Uniform Disposition of | ||||||
| 20 | Unclaimed Property Act, delivers human remains to the coroner, | ||||||
| 21 | the coroner shall cause the human remains to be disposed of as | ||||||
| 22 | provided in this Section.
If the police department of any | ||||||
| 23 | municipality or county investigates abandoned cremated | ||||||
| |||||||
| |||||||
| 1 | remains, determines that they are human remains, and cannot | ||||||
| 2 | locate the owner of the remains, then the police shall deliver | ||||||
| 3 | the remains to the coroner, and the coroner shall cause the | ||||||
| 4 | remains to be disposed of as provided in this Section.
| ||||||
| 5 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 6 | Section 50. The Illinois Banking Act is amended by changing | ||||||
| 7 | Sections 48, 48.1, 48.3, and 65 as follows:
| ||||||
| 8 | (205 ILCS 5/48)
| ||||||
| 9 | Sec. 48. Secretary's powers; duties. The Secretary shall | ||||||
| 10 | have the
powers and authority, and is charged with the duties | ||||||
| 11 | and responsibilities
designated in this Act, and a State bank | ||||||
| 12 | shall not be subject to any
other visitorial power other than | ||||||
| 13 | as authorized by this Act, except those
vested in the courts, | ||||||
| 14 | or upon prior consultation with the Secretary, a
foreign bank | ||||||
| 15 | regulator with an appropriate supervisory interest in the | ||||||
| 16 | parent
or affiliate of a state bank. In the performance of the | ||||||
| 17 | Secretary's
duties:
| ||||||
| 18 | (1) The Commissioner shall call for statements from all | ||||||
| 19 | State banks
as provided in Section 47 at least one time | ||||||
| 20 | during each calendar quarter.
| ||||||
| 21 | (2) (a) The Commissioner, as often as the Commissioner | ||||||
| 22 | shall deem
necessary or
proper, and no less frequently than | ||||||
| 23 | 18 months following the preceding
examination, shall | ||||||
| 24 | appoint a suitable person or
persons to make an examination | ||||||
| |||||||
| |||||||
| 1 | of the affairs of every State bank,
except that for every | ||||||
| 2 | eligible State bank, as defined by regulation, the
| ||||||
| 3 | Commissioner in lieu of the examination may accept on an | ||||||
| 4 | alternating basis the
examination made by the eligible | ||||||
| 5 | State bank's appropriate federal banking
agency pursuant | ||||||
| 6 | to Section 111 of the Federal Deposit Insurance Corporation
| ||||||
| 7 | Improvement Act of 1991, provided the appropriate federal | ||||||
| 8 | banking agency has
made such an examination. A person so | ||||||
| 9 | appointed shall not be a stockholder or
officer or employee | ||||||
| 10 | of
any bank which that person may be directed to examine, | ||||||
| 11 | and shall have
powers to make a thorough examination into | ||||||
| 12 | all the affairs of the bank and
in so doing to examine any | ||||||
| 13 | of the officers or agents or employees thereof
on oath and | ||||||
| 14 | shall make a full and detailed report of the condition of | ||||||
| 15 | the
bank to the Commissioner. In making the examination the | ||||||
| 16 | examiners shall
include an examination of the affairs of | ||||||
| 17 | all the affiliates of the bank, as
defined in subsection | ||||||
| 18 | (b) of Section 35.2 of this Act, or subsidiaries of the
| ||||||
| 19 | bank as shall be
necessary to disclose fully the conditions | ||||||
| 20 | of the subsidiaries or
affiliates, the relations
between | ||||||
| 21 | the bank and the subsidiaries or affiliates and the effect | ||||||
| 22 | of those
relations upon
the affairs of the bank, and in | ||||||
| 23 | connection therewith shall have power to
examine any of the | ||||||
| 24 | officers, directors, agents, or employees of the
| ||||||
| 25 | subsidiaries or affiliates
on oath. After May 31, 1997, the | ||||||
| 26 | Commissioner may enter into cooperative
agreements
with | ||||||
| |||||||
| |||||||
| 1 | state regulatory authorities of other states to provide for | ||||||
| 2 | examination of
State bank branches in those states, and the | ||||||
| 3 | Commissioner may accept reports
of examinations of State | ||||||
| 4 | bank branches from those state regulatory authorities.
| ||||||
| 5 | These cooperative agreements may set forth the manner in | ||||||
| 6 | which the other state
regulatory authorities may be | ||||||
| 7 | compensated for examinations prepared for and
submitted to | ||||||
| 8 | the Commissioner.
| ||||||
| 9 | (b) After May 31, 1997, the Commissioner is authorized | ||||||
| 10 | to examine, as often
as the Commissioner shall deem | ||||||
| 11 | necessary or proper, branches of out-of-state
banks. The | ||||||
| 12 | Commissioner may establish and may assess fees to be paid | ||||||
| 13 | to the
Commissioner for examinations under this subsection | ||||||
| 14 | (b). The fees shall be
borne by the out-of-state bank, | ||||||
| 15 | unless the fees are borne by the state
regulatory authority | ||||||
| 16 | that chartered the out-of-state bank, as determined by a
| ||||||
| 17 | cooperative agreement between the Commissioner and the | ||||||
| 18 | state regulatory
authority that chartered the out-of-state | ||||||
| 19 | bank.
| ||||||
| 20 | (2.1) Pursuant to paragraph (a) of subsection (6) of | ||||||
| 21 | this Section, the Secretary shall adopt rules that ensure | ||||||
| 22 | consistency and due process in the examination process. The | ||||||
| 23 | Secretary may also establish guidelines that (i) define the | ||||||
| 24 | scope of the examination process and (ii) clarify | ||||||
| 25 | examination items to be resolved. The rules, formal | ||||||
| 26 | guidance, interpretive letters, or opinions furnished to | ||||||
| |||||||
| |||||||
| 1 | State banks by the Secretary may be relied upon by the | ||||||
| 2 | State banks. | ||||||
| 3 | (2.5) Whenever any State bank, any subsidiary or | ||||||
| 4 | affiliate of a State
bank, or after May 31, 1997, any | ||||||
| 5 | branch of an out-of-state bank causes to
be performed, by | ||||||
| 6 | contract or otherwise, any bank services
for itself, | ||||||
| 7 | whether on or off its premises:
| ||||||
| 8 | (a) that performance shall be subject to | ||||||
| 9 | examination by the Commissioner
to the same extent as | ||||||
| 10 | if services were being performed by the bank or, after
| ||||||
| 11 | May 31, 1997, branch of the out-of-state bank itself
on | ||||||
| 12 | its own premises; and
| ||||||
| 13 | (b) the bank or, after May 31, 1997, branch of the | ||||||
| 14 | out-of-state bank
shall notify the Commissioner of the | ||||||
| 15 | existence of a service
relationship. The notification | ||||||
| 16 | shall be submitted with the first statement
of | ||||||
| 17 | condition (as required by Section 47 of this Act) due | ||||||
| 18 | after the making
of the service contract or the | ||||||
| 19 | performance of the service, whichever occurs
first. | ||||||
| 20 | The Commissioner shall be notified of each subsequent | ||||||
| 21 | contract in
the same manner.
| ||||||
| 22 | For purposes of this subsection (2.5), the term "bank | ||||||
| 23 | services" means
services such as sorting and posting of | ||||||
| 24 | checks and deposits, computation
and posting of interest | ||||||
| 25 | and other credits and charges, preparation and
mailing of | ||||||
| 26 | checks, statements, notices, and similar items, or any | ||||||
| |||||||
| |||||||
| 1 | other
clerical, bookkeeping, accounting, statistical, or | ||||||
| 2 | similar functions
performed for a State bank, including but | ||||||
| 3 | not limited to electronic data
processing related to those | ||||||
| 4 | bank services.
| ||||||
| 5 | (3) The expense of administering this Act, including | ||||||
| 6 | the expense of
the examinations of State banks as provided | ||||||
| 7 | in this Act, shall to the extent
of the amounts resulting | ||||||
| 8 | from the fees provided for in paragraphs (a),
(a-2), and | ||||||
| 9 | (b) of this subsection (3) be assessed against and borne by | ||||||
| 10 | the
State banks:
| ||||||
| 11 | (a) Each bank shall pay to the Secretary a Call | ||||||
| 12 | Report Fee which
shall be paid in quarterly | ||||||
| 13 | installments equal
to one-fourth of the sum of the | ||||||
| 14 | annual fixed fee of $800, plus a variable
fee based on | ||||||
| 15 | the assets shown on the quarterly statement of | ||||||
| 16 | condition
delivered to the Secretary in accordance | ||||||
| 17 | with Section 47 for the
preceding quarter according to | ||||||
| 18 | the following schedule: 16¢ per $1,000 of
the first | ||||||
| 19 | $5,000,000 of total assets, 15¢ per $1,000 of the next
| ||||||
| 20 | $20,000,000 of total assets, 13¢ per $1,000 of the next | ||||||
| 21 | $75,000,000 of
total assets, 9¢ per $1,000 of the next | ||||||
| 22 | $400,000,000 of total assets, 7¢
per $1,000 of the next | ||||||
| 23 | $500,000,000 of total assets, and 5¢ per $1,000 of
all | ||||||
| 24 | assets in excess of $1,000,000,000, of the State bank. | ||||||
| 25 | The Call Report
Fee shall be calculated by the | ||||||
| 26 | Secretary and billed to the banks for
remittance at the | ||||||
| |||||||
| |||||||
| 1 | time of the quarterly statements of condition
provided | ||||||
| 2 | for in Section 47. The Secretary may require payment of | ||||||
| 3 | the fees
provided in this Section by an electronic | ||||||
| 4 | transfer of funds or an automatic
debit of an account | ||||||
| 5 | of each of the State banks. In case more than one
| ||||||
| 6 | examination of any
bank is deemed by the Secretary to | ||||||
| 7 | be necessary in any examination
frequency cycle | ||||||
| 8 | specified in subsection 2(a) of this Section,
and is | ||||||
| 9 | performed at his direction, the Secretary may
assess a | ||||||
| 10 | reasonable additional fee to recover the cost of the | ||||||
| 11 | additional
examination; provided, however, that an | ||||||
| 12 | examination conducted at the request
of the State | ||||||
| 13 | Treasurer pursuant to the Uniform Disposition of | ||||||
| 14 | Unclaimed
Property Act shall not be deemed to be an | ||||||
| 15 | additional examination under this
Section.
In lieu
of | ||||||
| 16 | the method and amounts set forth in this paragraph (a) | ||||||
| 17 | for the calculation
of the Call Report Fee, the | ||||||
| 18 | Secretary may specify by
rule that the Call Report Fees | ||||||
| 19 | provided by this Section may be assessed
semiannually | ||||||
| 20 | or some other period and may provide in the rule the | ||||||
| 21 | formula to
be
used for calculating and assessing the | ||||||
| 22 | periodic Call Report Fees to be paid by
State
banks.
| ||||||
| 23 | (a-1) If in the opinion of the Commissioner an | ||||||
| 24 | emergency exists or
appears likely, the Commissioner | ||||||
| 25 | may assign an examiner or examiners to
monitor the | ||||||
| 26 | affairs of a State bank with whatever frequency he | ||||||
| |||||||
| |||||||
| 1 | deems
appropriate, including but not limited to a daily | ||||||
| 2 | basis. The reasonable
and necessary expenses of the | ||||||
| 3 | Commissioner during the period of the monitoring
shall | ||||||
| 4 | be borne by the subject bank. The Commissioner shall | ||||||
| 5 | furnish the
State bank a statement of time and expenses | ||||||
| 6 | if requested to do so within 30
days of the conclusion | ||||||
| 7 | of the monitoring period.
| ||||||
| 8 | (a-2) On and after January 1, 1990, the reasonable | ||||||
| 9 | and necessary
expenses of the Commissioner during | ||||||
| 10 | examination of the performance of
electronic data | ||||||
| 11 | processing services under subsection (2.5) shall be
| ||||||
| 12 | borne by the banks for which the services are provided. | ||||||
| 13 | An amount, based
upon a fee structure prescribed by the | ||||||
| 14 | Commissioner, shall be paid by the
banks or, after May | ||||||
| 15 | 31, 1997, branches of out-of-state banks receiving the
| ||||||
| 16 | electronic data processing services along with the
| ||||||
| 17 | Call Report Fee assessed under paragraph (a) of this
| ||||||
| 18 | subsection (3).
| ||||||
| 19 | (a-3) After May 31, 1997, the reasonable and | ||||||
| 20 | necessary expenses of the
Commissioner during | ||||||
| 21 | examination of the performance of electronic data
| ||||||
| 22 | processing services under subsection (2.5) at or on | ||||||
| 23 | behalf of branches of
out-of-state banks shall be borne | ||||||
| 24 | by the out-of-state banks, unless those
expenses are | ||||||
| 25 | borne by the state regulatory authorities that | ||||||
| 26 | chartered the
out-of-state banks, as determined by | ||||||
| |||||||
| |||||||
| 1 | cooperative agreements between the
Commissioner and | ||||||
| 2 | the state regulatory authorities that chartered the
| ||||||
| 3 | out-of-state banks.
| ||||||
| 4 | (b) "Fiscal year" for purposes of this Section 48 | ||||||
| 5 | is defined as a
period beginning July 1 of any year and | ||||||
| 6 | ending June 30 of the next year.
The Commissioner shall | ||||||
| 7 | receive for each fiscal year, commencing with the
| ||||||
| 8 | fiscal year ending June 30, 1987, a contingent fee | ||||||
| 9 | equal to the lesser of
the aggregate of the fees paid | ||||||
| 10 | by all State banks under paragraph (a) of
subsection | ||||||
| 11 | (3) for that year, or the amount, if any, whereby the | ||||||
| 12 | aggregate
of the administration expenses, as defined | ||||||
| 13 | in paragraph (c), for that
fiscal year exceeds the sum | ||||||
| 14 | of the aggregate of the fees payable by all
State banks | ||||||
| 15 | for that year under paragraph (a) of subsection (3),
| ||||||
| 16 | plus any amounts transferred into the Bank and Trust | ||||||
| 17 | Company Fund from the
State Pensions Fund for that | ||||||
| 18 | year,
plus all
other amounts collected by the | ||||||
| 19 | Commissioner for that year under any
other provision of | ||||||
| 20 | this Act, plus the aggregate of all fees
collected for | ||||||
| 21 | that year by the Commissioner under the Corporate | ||||||
| 22 | Fiduciary
Act, excluding the receivership fees | ||||||
| 23 | provided for in Section 5-10 of the
Corporate Fiduciary | ||||||
| 24 | Act, and the Foreign Banking Office Act.
The aggregate | ||||||
| 25 | amount of the contingent
fee thus arrived at for any | ||||||
| 26 | fiscal year shall be apportioned amongst,
assessed | ||||||
| |||||||
| |||||||
| 1 | upon, and paid by the State banks and foreign banking | ||||||
| 2 | corporations,
respectively, in the same proportion
| ||||||
| 3 | that the fee of each under paragraph (a) of subsection | ||||||
| 4 | (3), respectively,
for that year bears to the aggregate | ||||||
| 5 | for that year of the fees collected
under paragraph (a) | ||||||
| 6 | of subsection (3). The aggregate amount of the
| ||||||
| 7 | contingent fee, and the portion thereof to be assessed | ||||||
| 8 | upon each State
bank and foreign banking corporation,
| ||||||
| 9 | respectively, shall be determined by the Commissioner | ||||||
| 10 | and shall be paid by
each, respectively, within 120 | ||||||
| 11 | days of the close of the period for which
the | ||||||
| 12 | contingent fee is computed and is payable, and the | ||||||
| 13 | Commissioner shall
give 20 days days' advance notice of | ||||||
| 14 | the amount of the contingent fee payable by
the State | ||||||
| 15 | bank and of the date fixed by the Commissioner for | ||||||
| 16 | payment of
the fee.
| ||||||
| 17 | (c) The "administration expenses" for any fiscal | ||||||
| 18 | year shall mean the
ordinary and contingent expenses | ||||||
| 19 | for that year incident to making the
examinations | ||||||
| 20 | provided for by, and for otherwise administering, this | ||||||
| 21 | Act,
the Corporate Fiduciary Act, excluding the | ||||||
| 22 | expenses paid from the
Corporate Fiduciary | ||||||
| 23 | Receivership account in the Bank and Trust Company
| ||||||
| 24 | Fund, the Foreign Banking Office Act,
the Electronic | ||||||
| 25 | Fund Transfer Act,
and the Illinois Bank Examiners'
| ||||||
| 26 | Education Foundation Act, including all salaries and | ||||||
| |||||||
| |||||||
| 1 | other
compensation paid for personal services rendered | ||||||
| 2 | for the State by
officers or employees of the State, | ||||||
| 3 | including the Commissioner and the
Deputy | ||||||
| 4 | Commissioners, communication equipment and services, | ||||||
| 5 | office furnishings, surety bond
premiums, and travel | ||||||
| 6 | expenses of those officers and employees, employees,
| ||||||
| 7 | expenditures or charges for the acquisition, | ||||||
| 8 | enlargement or improvement
of, or for the use of, any | ||||||
| 9 | office space, building, or structure, or
expenditures | ||||||
| 10 | for the maintenance thereof or for furnishing heat, | ||||||
| 11 | light,
or power with respect thereto, all to the extent | ||||||
| 12 | that those expenditures
are directly incidental to | ||||||
| 13 | such examinations or administration.
The Commissioner | ||||||
| 14 | shall not be required by paragraphs (c) or (d-1) of | ||||||
| 15 | this
subsection (3) to maintain in any fiscal year's | ||||||
| 16 | budget appropriated reserves
for accrued vacation and | ||||||
| 17 | accrued sick leave that is required to be paid to
| ||||||
| 18 | employees of the Commissioner upon termination of | ||||||
| 19 | their service with the
Commissioner in an amount that | ||||||
| 20 | is more than is reasonably anticipated to be
necessary | ||||||
| 21 | for any anticipated turnover in employees, whether due | ||||||
| 22 | to normal
attrition or due to layoffs, terminations, or | ||||||
| 23 | resignations.
| ||||||
| 24 | (d) The aggregate of all fees collected by the | ||||||
| 25 | Secretary under
this Act, the Corporate Fiduciary Act,
| ||||||
| 26 | or the Foreign Banking Office Act on
and after July 1, | ||||||
| |||||||
| |||||||
| 1 | 1979, shall be paid promptly after receipt of the same,
| ||||||
| 2 | accompanied by a detailed statement thereof, into the | ||||||
| 3 | State treasury and
shall be set apart in a special fund | ||||||
| 4 | to be known as the "Bank and Trust
Company Fund", | ||||||
| 5 | except as provided in paragraph (c) of subsection (11) | ||||||
| 6 | of
this Section. All earnings received from | ||||||
| 7 | investments of funds in the Bank
and
Trust Company Fund | ||||||
| 8 | shall be deposited in the Bank and Trust Company Fund
| ||||||
| 9 | and may be used for the same purposes as fees deposited | ||||||
| 10 | in that Fund. The
amount from time to time deposited | ||||||
| 11 | into the Bank and
Trust Company Fund shall be used: (i) | ||||||
| 12 | to offset the ordinary administrative
expenses of the | ||||||
| 13 | Secretary as defined in
this Section or (ii) as a | ||||||
| 14 | credit against fees under paragraph (d-1) of this | ||||||
| 15 | subsection (3). Nothing in this amendatory Act of 1979 | ||||||
| 16 | shall prevent
continuing the practice of paying | ||||||
| 17 | expenses involving salaries, retirement,
social | ||||||
| 18 | security, and State-paid insurance premiums of State | ||||||
| 19 | officers by
appropriations from the General Revenue | ||||||
| 20 | Fund. However, the General Revenue
Fund shall be | ||||||
| 21 | reimbursed for those payments made on and after July 1, | ||||||
| 22 | 1979,
by an annual transfer of funds from the Bank and | ||||||
| 23 | Trust Company Fund. Moneys in the Bank and Trust | ||||||
| 24 | Company Fund may be transferred to the Professions | ||||||
| 25 | Indirect Cost Fund, as authorized under Section | ||||||
| 26 | 2105-300 of the Department of Professional Regulation | ||||||
| |||||||
| |||||||
| 1 | Law of the Civil Administrative Code of Illinois.
| ||||||
| 2 | Notwithstanding provisions in the State Finance | ||||||
| 3 | Act, as now or hereafter amended, or any other law to | ||||||
| 4 | the contrary, the sum of $18,788,847 shall be | ||||||
| 5 | transferred from the Bank and Trust Company Fund to the | ||||||
| 6 | Financial Institutions Settlement of 2008 Fund on the | ||||||
| 7 | effective date of this amendatory Act of the 95th | ||||||
| 8 | General Assembly, or as soon thereafter as practical. | ||||||
| 9 | Notwithstanding provisions in the State Finance | ||||||
| 10 | Act, as now or hereafter amended, or any other law to | ||||||
| 11 | the contrary, the Governor may, during any fiscal year | ||||||
| 12 | through January 10, 2011, from time to time direct the | ||||||
| 13 | State Treasurer and Comptroller to transfer a | ||||||
| 14 | specified sum not exceeding 10% of the revenues to be | ||||||
| 15 | deposited into the Bank and Trust Company Fund during | ||||||
| 16 | that fiscal year from that Fund to the General Revenue | ||||||
| 17 | Fund in order to help defray the State's operating | ||||||
| 18 | costs for the fiscal year. Notwithstanding provisions | ||||||
| 19 | in the State Finance Act, as now or hereafter amended, | ||||||
| 20 | or any other law to the contrary, the total sum | ||||||
| 21 | transferred during any fiscal year through January 10, | ||||||
| 22 | 2011, from the Bank and Trust Company Fund to the | ||||||
| 23 | General Revenue Fund pursuant to this provision shall | ||||||
| 24 | not exceed during any fiscal year 10% of the revenues | ||||||
| 25 | to be deposited into the Bank and Trust Company Fund | ||||||
| 26 | during that fiscal year. The State Treasurer and | ||||||
| |||||||
| |||||||
| 1 | Comptroller shall transfer the amounts designated | ||||||
| 2 | under this Section as soon as may be practicable after | ||||||
| 3 | receiving the direction to transfer from the Governor.
| ||||||
| 4 | (d-1) Adequate funds shall be available in the Bank | ||||||
| 5 | and Trust
Company Fund to permit the timely payment of | ||||||
| 6 | administration expenses. In
each fiscal year the total | ||||||
| 7 | administration expenses shall be deducted from
the | ||||||
| 8 | total fees collected by the Commissioner and the | ||||||
| 9 | remainder transferred
into the Cash Flow Reserve | ||||||
| 10 | Account, unless the balance of the Cash Flow
Reserve | ||||||
| 11 | Account prior to the transfer equals or exceeds
| ||||||
| 12 | one-fourth of the total initial appropriations from | ||||||
| 13 | the Bank and Trust
Company Fund for the subsequent | ||||||
| 14 | year, in which case the remainder shall be
credited to | ||||||
| 15 | State banks and foreign banking corporations
and | ||||||
| 16 | applied against their fees for the subsequent
year. The | ||||||
| 17 | amount credited to each State bank and foreign banking | ||||||
| 18 | corporation
shall be in the same proportion as the
Call | ||||||
| 19 | Report Fees paid by each for the year bear to the total | ||||||
| 20 | Call Report
Fees collected for the year. If, after a | ||||||
| 21 | transfer to the Cash Flow Reserve
Account is made or if | ||||||
| 22 | no remainder is available for transfer, the balance
of | ||||||
| 23 | the Cash Flow Reserve Account is less than one-fourth | ||||||
| 24 | of the total
initial appropriations for the subsequent | ||||||
| 25 | year and the amount transferred
is less than 5% of the | ||||||
| 26 | total Call Report Fees for the year, additional
amounts | ||||||
| |||||||
| |||||||
| 1 | needed to make the transfer equal to 5% of the total | ||||||
| 2 | Call Report
Fees for the year shall be apportioned | ||||||
| 3 | amongst, assessed upon, and
paid by the State banks and | ||||||
| 4 | foreign banking corporations
in the same proportion | ||||||
| 5 | that the Call Report Fees of each,
respectively, for | ||||||
| 6 | the year bear to the total Call Report Fees collected | ||||||
| 7 | for
the year. The additional amounts assessed shall be | ||||||
| 8 | transferred into the
Cash Flow Reserve Account. For | ||||||
| 9 | purposes of this paragraph (d-1), the
calculation of | ||||||
| 10 | the fees collected by the Commissioner shall exclude | ||||||
| 11 | the
receivership fees provided for in Section 5-10 of | ||||||
| 12 | the Corporate Fiduciary Act.
| ||||||
| 13 | (e) The Commissioner may upon request certify to | ||||||
| 14 | any public record
in his keeping and shall have | ||||||
| 15 | authority to levy a reasonable charge for
issuing | ||||||
| 16 | certifications of any public record in his keeping.
| ||||||
| 17 | (f) In addition to fees authorized elsewhere in | ||||||
| 18 | this Act, the
Commissioner
may, in connection with a | ||||||
| 19 | review, approval, or provision of a service, levy a
| ||||||
| 20 | reasonable charge to recover the cost of the review, | ||||||
| 21 | approval, or service.
| ||||||
| 22 | (4) Nothing contained in this Act shall be construed to | ||||||
| 23 | limit the
obligation relative to examinations and reports | ||||||
| 24 | of any State bank, deposits
in which are to any extent | ||||||
| 25 | insured by the United States or any agency
thereof, nor to | ||||||
| 26 | limit in any way the powers of the Commissioner with
| ||||||
| |||||||
| |||||||
| 1 | reference to examinations and reports of that bank.
| ||||||
| 2 | (5) The nature and condition of the assets in or | ||||||
| 3 | investment of any
bonus, pension, or profit sharing plan | ||||||
| 4 | for officers or employees of every
State bank or, after May | ||||||
| 5 | 31, 1997, branch of an out-of-state bank shall be
deemed to | ||||||
| 6 | be included in the affairs of that State
bank or branch of | ||||||
| 7 | an out-of-state bank subject to examination by the
| ||||||
| 8 | Commissioner under the
provisions of subsection (2) of this | ||||||
| 9 | Section, and if the Commissioner
shall find from an | ||||||
| 10 | examination that the condition of or operation
of the | ||||||
| 11 | investments or assets of the plan is unlawful, fraudulent, | ||||||
| 12 | or
unsafe, or that any trustee has abused his trust, the | ||||||
| 13 | Commissioner
shall, if the situation so found by the | ||||||
| 14 | Commissioner shall not be
corrected to his satisfaction | ||||||
| 15 | within 60 days after the Commissioner has
given notice to | ||||||
| 16 | the board of directors of the State bank or out-of-state
| ||||||
| 17 | bank of his
findings, report the facts to the Attorney | ||||||
| 18 | General who shall thereupon
institute proceedings against | ||||||
| 19 | the State bank or out-of-state bank, the
board of directors
| ||||||
| 20 | thereof, or the trustees under such plan as the nature of | ||||||
| 21 | the case may require.
| ||||||
| 22 | (6) The Commissioner shall have the power:
| ||||||
| 23 | (a) To promulgate reasonable rules for the purpose | ||||||
| 24 | of
administering the provisions of this Act.
| ||||||
| 25 | (a-5) To impose conditions on any approval issued | ||||||
| 26 | by the Commissioner
if he determines that the | ||||||
| |||||||
| |||||||
| 1 | conditions are necessary or appropriate. These
| ||||||
| 2 | conditions shall be imposed in writing and shall | ||||||
| 3 | continue
in effect for the period prescribed by the | ||||||
| 4 | Commissioner.
| ||||||
| 5 | (b) To issue orders
against any person, if the | ||||||
| 6 | Commissioner has
reasonable cause to believe that an | ||||||
| 7 | unsafe or unsound banking practice
has occurred, is | ||||||
| 8 | occurring, or is about to occur, if any person has | ||||||
| 9 | violated,
is violating, or is about to violate any law, | ||||||
| 10 | rule, or written
agreement with the Commissioner, or
| ||||||
| 11 | for the purpose of administering the provisions of
this | ||||||
| 12 | Act and any rule promulgated in accordance with this | ||||||
| 13 | Act.
| ||||||
| 14 | (b-1) To enter into agreements with a bank | ||||||
| 15 | establishing a program to
correct the condition of the | ||||||
| 16 | bank or its practices.
| ||||||
| 17 | (c) To appoint hearing officers to execute any of | ||||||
| 18 | the powers granted to
the Commissioner under this | ||||||
| 19 | Section for the purpose of administering this
Act and | ||||||
| 20 | any rule promulgated in accordance with this Act
and | ||||||
| 21 | otherwise to authorize, in writing, an officer or | ||||||
| 22 | employee of the Office
of
Banks and Real Estate to | ||||||
| 23 | exercise his powers under this Act.
| ||||||
| 24 | (d) To subpoena witnesses, to compel their | ||||||
| 25 | attendance, to administer
an oath, to examine any | ||||||
| 26 | person under oath, and to require the production of
any | ||||||
| |||||||
| |||||||
| 1 | relevant books, papers, accounts, and documents in the | ||||||
| 2 | course of and
pursuant to any investigation being | ||||||
| 3 | conducted, or any action being taken,
by the | ||||||
| 4 | Commissioner in respect of any matter relating to the | ||||||
| 5 | duties imposed
upon, or the powers vested in, the | ||||||
| 6 | Commissioner under the provisions of
this Act or any | ||||||
| 7 | rule promulgated in accordance with this Act.
| ||||||
| 8 | (e) To conduct hearings.
| ||||||
| 9 | (7) Whenever, in the opinion of the Secretary, any | ||||||
| 10 | director,
officer, employee, or agent of a State bank
or | ||||||
| 11 | any subsidiary or bank holding company of the bank
or, | ||||||
| 12 | after May 31, 1997, of any
branch of an out-of-state bank
| ||||||
| 13 | or any subsidiary or bank holding company of the bank
shall | ||||||
| 14 | have violated any law,
rule, or order relating to that bank
| ||||||
| 15 | or any subsidiary or bank holding company of the bank, | ||||||
| 16 | shall have
obstructed or impeded any examination or | ||||||
| 17 | investigation by the Secretary, shall have engaged in an | ||||||
| 18 | unsafe or
unsound practice in conducting the business of | ||||||
| 19 | that bank
or any subsidiary or bank holding company of the | ||||||
| 20 | bank,
or shall have
violated any law or engaged or | ||||||
| 21 | participated in any unsafe or unsound practice
in | ||||||
| 22 | connection with any financial institution or other | ||||||
| 23 | business entity such that
the character and fitness of the | ||||||
| 24 | director, officer, employee, or agent does not
assure | ||||||
| 25 | reasonable promise of safe and sound operation of the State | ||||||
| 26 | bank, the
Secretary
may issue an order of removal.
If, in | ||||||
| |||||||
| |||||||
| 1 | the opinion of the Secretary, any former director, officer,
| ||||||
| 2 | employee,
or agent of a State bank
or any subsidiary or | ||||||
| 3 | bank holding company of the bank, prior to the
termination | ||||||
| 4 | of his or her service with
that bank
or any subsidiary or | ||||||
| 5 | bank holding company of the bank, violated any law,
rule, | ||||||
| 6 | or order relating to that
State bank
or any subsidiary or | ||||||
| 7 | bank holding company of the bank, obstructed or impeded
any | ||||||
| 8 | examination or investigation by the Secretary, engaged in | ||||||
| 9 | an unsafe or unsound practice in conducting the
business of | ||||||
| 10 | that bank
or any subsidiary or bank holding company of the | ||||||
| 11 | bank,
or violated any law or engaged or participated in any
| ||||||
| 12 | unsafe or unsound practice in connection with any financial | ||||||
| 13 | institution or
other business entity such that the | ||||||
| 14 | character and fitness of the director,
officer, employee, | ||||||
| 15 | or agent would not have assured reasonable promise of safe
| ||||||
| 16 | and sound operation of the State bank, the Secretary may | ||||||
| 17 | issue an order
prohibiting that person from
further
service | ||||||
| 18 | with a bank
or any subsidiary or bank holding company of | ||||||
| 19 | the bank
as a director, officer, employee, or agent. An | ||||||
| 20 | order
issued pursuant to this subsection shall be served | ||||||
| 21 | upon the
director,
officer, employee, or agent. A copy of | ||||||
| 22 | the order shall be sent to each
director of the bank | ||||||
| 23 | affected by registered mail. A copy of
the order shall also | ||||||
| 24 | be served upon the bank of which he is a director,
officer, | ||||||
| 25 | employee, or agent, whereupon he shall cease to be a | ||||||
| 26 | director,
officer, employee, or agent of that bank. The | ||||||
| |||||||
| |||||||
| 1 | Secretary may
institute a civil action against the | ||||||
| 2 | director, officer, or agent of the
State bank or, after May | ||||||
| 3 | 31, 1997, of the branch of the out-of-state bank
against | ||||||
| 4 | whom any order provided for by this subsection (7) of
this | ||||||
| 5 | Section 48 has been issued, and against the State bank or, | ||||||
| 6 | after May 31,
1997, out-of-state bank, to enforce
| ||||||
| 7 | compliance with or to enjoin any violation of the terms of | ||||||
| 8 | the order.
Any person who has been the subject of an order | ||||||
| 9 | of removal
or
an order of prohibition issued by the | ||||||
| 10 | Secretary under
this subsection or Section 5-6 of the | ||||||
| 11 | Corporate Fiduciary Act may not
thereafter serve as | ||||||
| 12 | director, officer, employee, or agent of any State bank
or | ||||||
| 13 | of any branch of any out-of-state bank,
or of any corporate | ||||||
| 14 | fiduciary, as defined in Section 1-5.05 of the
Corporate
| ||||||
| 15 | Fiduciary Act, or of any other entity that is subject to | ||||||
| 16 | licensure or
regulation by the Division of Banking unless
| ||||||
| 17 | the Secretary has granted prior approval in writing.
| ||||||
| 18 | For purposes of this paragraph (7), "bank holding | ||||||
| 19 | company" has the
meaning prescribed in Section 2 of the | ||||||
| 20 | Illinois Bank Holding Company Act of
1957.
| ||||||
| 21 | (8) The Commissioner may impose civil penalties of up | ||||||
| 22 | to $100,000 against
any person for each violation of any | ||||||
| 23 | provision of this Act, any rule
promulgated in accordance | ||||||
| 24 | with this Act, any order of the Commissioner, or
any other | ||||||
| 25 | action which in the Commissioner's discretion is an unsafe | ||||||
| 26 | or
unsound banking practice.
| ||||||
| |||||||
| |||||||
| 1 | (9) The Commissioner may impose civil penalties of up | ||||||
| 2 | to $100
against any person for the first failure to comply | ||||||
| 3 | with reporting
requirements set forth in the report of | ||||||
| 4 | examination of the bank and up to
$200 for the second and | ||||||
| 5 | subsequent failures to comply with those reporting
| ||||||
| 6 | requirements.
| ||||||
| 7 | (10) All final administrative decisions of the | ||||||
| 8 | Commissioner hereunder
shall be subject to judicial review | ||||||
| 9 | pursuant to the provisions of the
Administrative Review | ||||||
| 10 | Law. For matters involving administrative review,
venue | ||||||
| 11 | shall be in either Sangamon County or Cook County.
| ||||||
| 12 | (11) The endowment fund for the Illinois Bank | ||||||
| 13 | Examiners' Education
Foundation shall be administered as | ||||||
| 14 | follows:
| ||||||
| 15 | (a) (Blank).
| ||||||
| 16 | (b) The Foundation is empowered to receive | ||||||
| 17 | voluntary contributions,
gifts, grants, bequests, and | ||||||
| 18 | donations on behalf of the Illinois Bank
Examiners' | ||||||
| 19 | Education Foundation from national banks and other | ||||||
| 20 | persons for
the purpose of funding the endowment of the | ||||||
| 21 | Illinois Bank Examiners'
Education Foundation.
| ||||||
| 22 | (c) The aggregate of all special educational fees | ||||||
| 23 | collected by the
Secretary and property received by the | ||||||
| 24 | Secretary on behalf of the
Illinois Bank Examiners' | ||||||
| 25 | Education Foundation under this subsection
(11) on or | ||||||
| 26 | after June 30, 1986, shall be either (i) promptly paid | ||||||
| |||||||
| |||||||
| 1 | after
receipt of the same, accompanied by a detailed | ||||||
| 2 | statement thereof, into the
State Treasury and shall be | ||||||
| 3 | set apart in a special fund to be known as "The
| ||||||
| 4 | Illinois Bank Examiners' Education Fund" to be | ||||||
| 5 | invested by either the
Treasurer of the State of | ||||||
| 6 | Illinois in the Public Treasurers' Investment
Pool or | ||||||
| 7 | in any other investment he is authorized to make or by | ||||||
| 8 | the Illinois
State Board of Investment as the State | ||||||
| 9 | Banking Board of Illinois may direct or (ii) deposited | ||||||
| 10 | into an account
maintained in a commercial bank or | ||||||
| 11 | corporate fiduciary in the name of the
Illinois Bank | ||||||
| 12 | Examiners' Education Foundation pursuant to the order | ||||||
| 13 | and
direction of the Board of Trustees of the Illinois | ||||||
| 14 | Bank Examiners' Education
Foundation.
| ||||||
| 15 | (12) (Blank).
| ||||||
| 16 | (13) The Secretary may borrow funds from the General | ||||||
| 17 | Revenue Fund on behalf of the Bank and Trust Company Fund | ||||||
| 18 | if the Director of Banking certifies to the Governor that | ||||||
| 19 | there is an economic emergency affecting banking that | ||||||
| 20 | requires a borrowing to provide additional funds to the | ||||||
| 21 | Bank and Trust Company Fund. The borrowed funds shall be | ||||||
| 22 | paid back within 3 years and shall not exceed the total | ||||||
| 23 | funding appropriated to the Agency in the previous year. | ||||||
| 24 | (14) In addition to the fees authorized in this Act, | ||||||
| 25 | the Secretary may assess reasonable receivership fees | ||||||
| 26 | against any State bank that does not maintain insurance | ||||||
| |||||||
| |||||||
| 1 | with the Federal Deposit Insurance Corporation. All fees | ||||||
| 2 | collected under this subsection (14) shall be paid into the | ||||||
| 3 | Non-insured Institutions Receivership account in the Bank | ||||||
| 4 | and Trust Company Fund, as established by the Secretary. | ||||||
| 5 | The fees assessed under this subsection (14) shall provide | ||||||
| 6 | for the expenses that arise from the administration of the | ||||||
| 7 | receivership of any such institution required to pay into | ||||||
| 8 | the Non-insured Institutions Receivership account, whether | ||||||
| 9 | pursuant to this Act, the Corporate Fiduciary Act, the | ||||||
| 10 | Foreign Banking Office Act, or any other Act that requires | ||||||
| 11 | payments into the Non-insured Institutions Receivership | ||||||
| 12 | account. The Secretary may establish by rule a reasonable | ||||||
| 13 | manner of assessing fees under this subsection (14). | ||||||
| 14 | (Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)
| ||||||
| 15 | (205 ILCS 5/48.1) (from Ch. 17, par. 360)
| ||||||
| 16 | Sec. 48.1. Customer financial records; confidentiality.
| ||||||
| 17 | (a) For the purpose of this Section, the term "financial | ||||||
| 18 | records" means any
original, any copy, or any summary of:
| ||||||
| 19 | (1) a document granting signature
authority over a | ||||||
| 20 | deposit or account;
| ||||||
| 21 | (2) a statement, ledger card or other
record on any | ||||||
| 22 | deposit or account, which shows each transaction in or with
| ||||||
| 23 | respect to that account;
| ||||||
| 24 | (3) a check, draft or money order drawn on a bank
or | ||||||
| 25 | issued and payable by a bank; or
| ||||||
| |||||||
| |||||||
| 1 | (4) any other item containing
information pertaining | ||||||
| 2 | to any relationship established in the ordinary
course of a | ||||||
| 3 | bank's business between a bank and its customer, including
| ||||||
| 4 | financial statements or other financial information | ||||||
| 5 | provided by the customer.
| ||||||
| 6 | (b) This Section does not prohibit:
| ||||||
| 7 | (1) The preparation, examination, handling or | ||||||
| 8 | maintenance of any
financial records by any officer, | ||||||
| 9 | employee or agent of a bank
having custody of the records, | ||||||
| 10 | or the examination of the records by a
certified public | ||||||
| 11 | accountant engaged by the bank to perform an independent
| ||||||
| 12 | audit.
| ||||||
| 13 | (2) The examination of any financial records by, or the | ||||||
| 14 | furnishing of
financial records by a bank to, any officer, | ||||||
| 15 | employee or agent of (i) the
Commissioner of Banks and Real | ||||||
| 16 | Estate, (ii) after May
31, 1997, a state regulatory | ||||||
| 17 | authority authorized to examine a branch of a
State bank | ||||||
| 18 | located in another state, (iii) the Comptroller of the | ||||||
| 19 | Currency,
(iv) the Federal Reserve Board, or (v) the | ||||||
| 20 | Federal Deposit Insurance
Corporation for use solely in the | ||||||
| 21 | exercise of his duties as an officer,
employee, or agent.
| ||||||
| 22 | (3) The publication of data furnished from financial | ||||||
| 23 | records
relating to customers where the data cannot be | ||||||
| 24 | identified to any
particular customer or account.
| ||||||
| 25 | (4) The making of reports or returns required under | ||||||
| 26 | Chapter 61 of
the Internal Revenue Code of 1986.
| ||||||
| |||||||
| |||||||
| 1 | (5) Furnishing information concerning the dishonor of | ||||||
| 2 | any negotiable
instrument permitted to be disclosed under | ||||||
| 3 | the Uniform Commercial Code.
| ||||||
| 4 | (6) The exchange in the regular course of business of | ||||||
| 5 | (i) credit
information
between a bank and other banks or | ||||||
| 6 | financial institutions or commercial
enterprises, directly | ||||||
| 7 | or through a consumer reporting agency or (ii)
financial | ||||||
| 8 | records or information derived from financial records | ||||||
| 9 | between a bank
and other banks or financial institutions or | ||||||
| 10 | commercial enterprises for the
purpose of conducting due | ||||||
| 11 | diligence pursuant to a purchase or sale involving
the bank | ||||||
| 12 | or assets or liabilities of the bank.
| ||||||
| 13 | (7) The furnishing of information to the appropriate | ||||||
| 14 | law enforcement
authorities where the bank reasonably | ||||||
| 15 | believes it has been the victim of a
crime.
| ||||||
| 16 | (8) The furnishing of information under the Revised | ||||||
| 17 | Uniform
Disposition of Unclaimed Property Act.
| ||||||
| 18 | (9) The furnishing of information under the Illinois | ||||||
| 19 | Income Tax Act and
the Illinois Estate and | ||||||
| 20 | Generation-Skipping Transfer Tax Act.
| ||||||
| 21 | (10) The furnishing of information under the federal | ||||||
| 22 | Currency
and Foreign Transactions Reporting Act Title 31, | ||||||
| 23 | United States
Code, Section 1051 et seq.
| ||||||
| 24 | (11) The furnishing of information under any other | ||||||
| 25 | statute that
by its terms or by regulations promulgated | ||||||
| 26 | thereunder requires the disclosure
of financial records | ||||||
| |||||||
| |||||||
| 1 | other than by subpoena, summons, warrant, or court order.
| ||||||
| 2 | (12) The furnishing of information about the existence | ||||||
| 3 | of an account
of a person to a judgment creditor of that | ||||||
| 4 | person who has made a written
request for that information.
| ||||||
| 5 | (13) The exchange in the regular course of business of | ||||||
| 6 | information
between commonly owned banks in connection | ||||||
| 7 | with a transaction authorized
under paragraph (23) of
| ||||||
| 8 | Section 5 and conducted at an affiliate facility.
| ||||||
| 9 | (14) The furnishing of information in accordance with | ||||||
| 10 | the federal
Personal Responsibility and Work Opportunity | ||||||
| 11 | Reconciliation Act of 1996.
Any bank governed by this Act | ||||||
| 12 | shall enter into an agreement for data
exchanges with a | ||||||
| 13 | State agency provided the State agency
pays to the bank a | ||||||
| 14 | reasonable fee not to exceed its
actual cost incurred. A | ||||||
| 15 | bank providing
information in accordance with this item | ||||||
| 16 | shall not be liable to any account
holder or other person | ||||||
| 17 | for any disclosure of information to a State agency, for
| ||||||
| 18 | encumbering or surrendering any assets held by the bank in | ||||||
| 19 | response to a lien
or order to withhold and deliver issued | ||||||
| 20 | by a State agency, or for any other
action taken pursuant | ||||||
| 21 | to this item, including individual or mechanical errors,
| ||||||
| 22 | provided the action does not constitute gross negligence or | ||||||
| 23 | willful misconduct.
A bank shall have no obligation to | ||||||
| 24 | hold, encumber, or surrender assets until
it has been | ||||||
| 25 | served with a subpoena, summons, warrant, court or | ||||||
| 26 | administrative
order,
lien, or levy.
| ||||||
| |||||||
| |||||||
| 1 | (15) The exchange in the regular course of business of | ||||||
| 2 | information
between
a bank and any commonly owned affiliate | ||||||
| 3 | of the bank, subject to the provisions
of the Financial | ||||||
| 4 | Institutions Insurance Sales Law.
| ||||||
| 5 | (16) The furnishing of information to law enforcement | ||||||
| 6 | authorities, the
Illinois Department on
Aging and its | ||||||
| 7 | regional administrative and provider agencies, the | ||||||
| 8 | Department of
Human Services Office
of Inspector General, | ||||||
| 9 | or public guardians: (i) upon subpoena by the investigatory | ||||||
| 10 | entity or the guardian, or (ii) if there is suspicion by | ||||||
| 11 | the bank that a customer
who is an elderly person or person | ||||||
| 12 | with a disability has been or may become the victim of | ||||||
| 13 | financial exploitation.
For the purposes of this
item (16), | ||||||
| 14 | the term: (i) "elderly person" means a person who is 60 or | ||||||
| 15 | more
years of age, (ii) "disabled
person" means a person | ||||||
| 16 | who has or reasonably appears to the bank to have a
| ||||||
| 17 | physical or mental
disability that impairs his or her | ||||||
| 18 | ability to seek or obtain protection from or
prevent | ||||||
| 19 | financial
exploitation, and (iii) "financial exploitation" | ||||||
| 20 | means tortious or illegal use
of the assets or resources of
| ||||||
| 21 | an elderly or disabled person, and includes, without | ||||||
| 22 | limitation,
misappropriation of the elderly or
disabled | ||||||
| 23 | person's assets or resources by undue influence, breach of | ||||||
| 24 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
| 25 | extortion, or the use of assets or resources in any manner
| ||||||
| 26 | contrary to law. A bank or
person furnishing information | ||||||
| |||||||
| |||||||
| 1 | pursuant to this item (16) shall be entitled to
the same | ||||||
| 2 | rights and
protections as a person furnishing information | ||||||
| 3 | under the Adult Protective Services Act and the Illinois
| ||||||
| 4 | Domestic Violence Act of 1986.
| ||||||
| 5 | (17) The disclosure of financial records or | ||||||
| 6 | information as necessary to
effect, administer, or enforce | ||||||
| 7 | a transaction requested or authorized by the
customer, or | ||||||
| 8 | in connection with:
| ||||||
| 9 | (A) servicing or processing a financial product or | ||||||
| 10 | service requested or
authorized by the customer;
| ||||||
| 11 | (B) maintaining or servicing a customer's account | ||||||
| 12 | with the bank; or
| ||||||
| 13 | (C) a proposed or actual securitization or | ||||||
| 14 | secondary market sale
(including sales of servicing | ||||||
| 15 | rights) related to a
transaction of a customer.
| ||||||
| 16 | Nothing in this item (17), however, authorizes the sale | ||||||
| 17 | of the financial
records or information of a customer | ||||||
| 18 | without the consent of the customer.
| ||||||
| 19 | (18) The disclosure of financial records or | ||||||
| 20 | information as necessary to
protect against actual or | ||||||
| 21 | potential fraud, unauthorized transactions, claims,
or | ||||||
| 22 | other liability.
| ||||||
| 23 | (19)(A) (a) The disclosure of financial records or | ||||||
| 24 | information
related to a private label credit program | ||||||
| 25 | between a financial
institution and a private label party | ||||||
| 26 | in connection with that
private label credit program. Such | ||||||
| |||||||
| |||||||
| 1 | information is limited to
outstanding balance, available | ||||||
| 2 | credit, payment and performance
and account history, | ||||||
| 3 | product references, purchase information,
and information
| ||||||
| 4 | related to the identity of the customer.
| ||||||
| 5 | (B)(1) For purposes of this paragraph (19) of | ||||||
| 6 | subsection
(b) of Section 48.1, a "private label credit | ||||||
| 7 | program" means a
credit program involving a financial | ||||||
| 8 | institution and a private label
party that is used by a | ||||||
| 9 | customer of the financial institution and the
private label | ||||||
| 10 | party primarily for payment for goods or services
sold, | ||||||
| 11 | manufactured, or distributed by a private label party. | ||||||
| 12 | (2) For purposes of this paragraph (19) of subsection | ||||||
| 13 | (b)
of Section 48.1, a "private label party" means, with | ||||||
| 14 | respect to a
private label credit program, any of the | ||||||
| 15 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
| 16 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
| 17 | agent, or service provider. | ||||||
| 18 | (20)(A) (a) The furnishing of financial records of a | ||||||
| 19 | customer to the Department to aid the Department's initial | ||||||
| 20 | determination or subsequent re-determination of the | ||||||
| 21 | customer's eligibility for Medicaid and Medicaid long-term | ||||||
| 22 | care benefits for long-term care services, provided that | ||||||
| 23 | the bank receives the written consent and authorization of | ||||||
| 24 | the customer, which shall: | ||||||
| 25 | (1) have the customer's signature notarized; | ||||||
| 26 | (2) be signed by at least one witness who certifies | ||||||
| |||||||
| |||||||
| 1 | that he or she believes the customer to be of sound | ||||||
| 2 | mind and memory; | ||||||
| 3 | (3) be tendered to the bank at the earliest | ||||||
| 4 | practicable time following its execution, | ||||||
| 5 | certification, and notarization; | ||||||
| 6 | (4) specifically limit the disclosure of the | ||||||
| 7 | customer's financial records to the Department; and | ||||||
| 8 | (5) be in substantially the following form:
| ||||||
| 9 | CUSTOMER CONSENT AND AUTHORIZATION | ||||||
| 10 | FOR RELEASE OF FINANCIAL RECORDS | ||||||
| 11 | I, ......................................., hereby authorize | ||||||
| 12 | (Name of Customer)
| ||||||
| 13 | ............................................................. | ||||||
| 14 | (Name of Financial Institution)
| ||||||
| 15 | ............................................................. | ||||||
| 16 | (Address of Financial Institution)
| ||||||
| 17 | to disclose the following financial records:
| ||||||
| 18 | any and all information concerning my deposit, savings, money | ||||||
| 19 | market, certificate of deposit, individual retirement, | ||||||
| 20 | retirement plan, 401(k) plan, incentive plan, employee benefit | ||||||
| |||||||
| |||||||
| 1 | plan, mutual fund and loan accounts (including, but not limited | ||||||
| 2 | to, any indebtedness or obligation for which I am a | ||||||
| 3 | co-borrower, co-obligor, guarantor, or surety), and any and all | ||||||
| 4 | other accounts in which I have an interest and any other | ||||||
| 5 | information regarding me in the possession of the Financial | ||||||
| 6 | Institution,
| ||||||
| 7 | to the Illinois Department of Human Services or the Illinois | ||||||
| 8 | Department of Healthcare and Family Services, or both ("the | ||||||
| 9 | Department"), for the following purpose(s):
| ||||||
| 10 | to aid in the initial determination or re-determination by the | ||||||
| 11 | State of Illinois of my eligibility for Medicaid long-term care | ||||||
| 12 | benefits, pursuant to applicable law.
| ||||||
| 13 | I understand that this Consent and Authorization may be revoked | ||||||
| 14 | by me in writing at any time before my financial records, as | ||||||
| 15 | described above, are disclosed, and that this Consent and | ||||||
| 16 | Authorization is valid until the Financial Institution | ||||||
| 17 | receives my written revocation. This Consent and Authorization | ||||||
| 18 | shall constitute valid authorization for the Department | ||||||
| 19 | identified above to inspect all such financial records set | ||||||
| 20 | forth above, and to request and receive copies of such | ||||||
| 21 | financial records from the Financial Institution (subject to | ||||||
| 22 | such records search and reproduction reimbursement policies as | ||||||
| 23 | the Financial Institution may have in place). An executed copy | ||||||
| |||||||
| |||||||
| 1 | of this Consent and Authorization shall be sufficient and as | ||||||
| 2 | good as the original and permission is hereby granted to honor | ||||||
| 3 | a photostatic or electronic copy of this Consent and | ||||||
| 4 | Authorization. Disclosure is strictly limited to the | ||||||
| 5 | Department identified above and no other person or entity shall | ||||||
| 6 | receive my financial records pursuant to this Consent and | ||||||
| 7 | Authorization. By signing this form, I agree to indemnify and | ||||||
| 8 | hold the Financial Institution harmless from any and all | ||||||
| 9 | claims, demands, and losses, including reasonable attorneys | ||||||
| 10 | fees and expenses, arising from or incurred in its reliance on | ||||||
| 11 | this Consent and Authorization. As used herein, "Customer" | ||||||
| 12 | shall mean "Member" if the Financial Institution is a credit | ||||||
| 13 | union.
| ||||||
| 14 | ....................... ...................... | ||||||
| 15 | (Date) (Signature of Customer)
| ||||||
| 16 | ...................... | ||||||
| 17 | ...................... | ||||||
| 18 | (Address of Customer)
| ||||||
| 19 | ...................... | ||||||
| 20 | (Customer's birth date) | ||||||
| 21 | (month/day/year)
| ||||||
| 22 | The undersigned witness certifies that ................., | ||||||
| |||||||
| |||||||
| 1 | known to me to be the same person whose name is subscribed as | ||||||
| 2 | the customer to the foregoing Consent and Authorization, | ||||||
| 3 | appeared before me and the notary public and acknowledged | ||||||
| 4 | signing and delivering the instrument as his or her free and | ||||||
| 5 | voluntary act for the uses and purposes therein set forth. I | ||||||
| 6 | believe him or her to be of sound mind and memory. The | ||||||
| 7 | undersigned witness also certifies that the witness is not an | ||||||
| 8 | owner, operator, or relative of an owner or operator of a | ||||||
| 9 | long-term care facility in which the customer is a patient or | ||||||
| 10 | resident.
| ||||||
| 11 | Dated: ................. ...................... | ||||||
| 12 | (Signature of Witness)
| ||||||
| 13 | ...................... | ||||||
| 14 | (Print Name of Witness)
| ||||||
| 15 | ...................... | ||||||
| 16 | ...................... | ||||||
| 17 | (Address of Witness)
| ||||||
| 18 | State of Illinois) | ||||||
| 19 | ) ss. | ||||||
| 20 | County of .......)
| ||||||
| 21 | The undersigned, a notary public in and for the above county | ||||||
| |||||||
| |||||||
| 1 | and state, certifies that .........., known to me to be the | ||||||
| 2 | same person whose name is subscribed as the customer to the | ||||||
| 3 | foregoing Consent and Authorization, appeared before me | ||||||
| 4 | together with the witness, .........., in person and | ||||||
| 5 | acknowledged signing and delivering the instrument as the free | ||||||
| 6 | and voluntary act of the customer for the uses and purposes | ||||||
| 7 | therein set forth.
| ||||||
| 8 | Dated:....................................................... | ||||||
| 9 | Notary Public:............................................... | ||||||
| 10 | My commission expires:.......................................
| ||||||
| 11 | (B) (b) In no event shall the bank distribute the | ||||||
| 12 | customer's financial records to the long-term care | ||||||
| 13 | facility from which the customer seeks initial or | ||||||
| 14 | continuing residency or long-term care services. | ||||||
| 15 | (C) (c) A bank providing financial records of a | ||||||
| 16 | customer in good faith relying on a consent and | ||||||
| 17 | authorization executed and tendered in accordance with | ||||||
| 18 | this paragraph (20) shall not be liable to the customer or | ||||||
| 19 | any other person in relation to the bank's disclosure of | ||||||
| 20 | the customer's financial records to the Department. The | ||||||
| 21 | customer signing the consent and authorization shall | ||||||
| 22 | indemnify and hold the bank harmless that relies in good | ||||||
| 23 | faith upon the consent and authorization and incurs a loss | ||||||
| 24 | because of such reliance. The bank recovering under this | ||||||
| |||||||
| |||||||
| 1 | indemnification provision shall also be entitled to | ||||||
| 2 | reasonable attorney's fees and the expenses of recovery. | ||||||
| 3 | (D) (d) A bank shall be reimbursed by the customer for | ||||||
| 4 | all costs reasonably necessary and directly incurred in | ||||||
| 5 | searching for, reproducing, and disclosing a customer's | ||||||
| 6 | financial records required or requested to be produced | ||||||
| 7 | pursuant to any consent and authorization executed under | ||||||
| 8 | this paragraph (20). The requested financial records shall | ||||||
| 9 | be delivered to the Department within 10 days after | ||||||
| 10 | receiving a properly executed consent and authorization or | ||||||
| 11 | at the earliest practicable time thereafter if the | ||||||
| 12 | requested records cannot be delivered within 10 days, but | ||||||
| 13 | delivery may be delayed until the final reimbursement of | ||||||
| 14 | all costs is received by the bank. The bank may honor a | ||||||
| 15 | photostatic or electronic copy of a properly executed | ||||||
| 16 | consent and authorization. | ||||||
| 17 | (E) (e) Nothing in this paragraph (20) shall impair, | ||||||
| 18 | abridge, or abrogate the right of a customer to: | ||||||
| 19 | (1) directly disclose his or her financial records | ||||||
| 20 | to the Department or any other person; or | ||||||
| 21 | (2) authorize his or her attorney or duly appointed | ||||||
| 22 | agent to request and obtain the customer's financial | ||||||
| 23 | records and disclose those financial records to the | ||||||
| 24 | Department. | ||||||
| 25 | (F) (f) For purposes of this paragraph (20), | ||||||
| 26 | "Department" means the Department of Human Services and the | ||||||
| |||||||
| |||||||
| 1 | Department of Healthcare and Family Services or any | ||||||
| 2 | successor administrative agency of either agency. | ||||||
| 3 | (b)(1) For purposes of this paragraph (19) of | ||||||
| 4 | subsection
(b) of Section 48.1, a "private label credit | ||||||
| 5 | program" means a
credit program involving a financial | ||||||
| 6 | institution and a private label
party that is used by a | ||||||
| 7 | customer of the financial institution and the
private label | ||||||
| 8 | party primarily for payment for goods or services
sold, | ||||||
| 9 | manufactured, or distributed by a private label party.
| ||||||
| 10 | (2) For purposes of this paragraph (19) of subsection | ||||||
| 11 | (b)
of Section 48.1, a "private label party" means, with | ||||||
| 12 | respect to a
private label credit program, any of the | ||||||
| 13 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
| 14 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
| 15 | agent, or service provider.
| ||||||
| 16 | (c) Except as otherwise provided by this Act, a bank may | ||||||
| 17 | not disclose to
any person, except to the customer or his
duly | ||||||
| 18 | authorized agent, any financial records or financial | ||||||
| 19 | information
obtained from financial records relating to that | ||||||
| 20 | customer of
that bank unless:
| ||||||
| 21 | (1) the customer has authorized disclosure to the | ||||||
| 22 | person;
| ||||||
| 23 | (2) the financial records are disclosed in response to | ||||||
| 24 | a lawful
subpoena, summons, warrant, citation to discover | ||||||
| 25 | assets, or court order which meets the requirements
of | ||||||
| 26 | subsection (d) of this Section; or
| ||||||
| |||||||
| |||||||
| 1 | (3) the bank is attempting to collect an obligation | ||||||
| 2 | owed to the bank
and the bank complies with the provisions | ||||||
| 3 | of Section 2I of the Consumer
Fraud and Deceptive Business | ||||||
| 4 | Practices Act.
| ||||||
| 5 | (d) A bank shall disclose financial records under paragraph | ||||||
| 6 | (2) of
subsection (c) of this Section under a lawful subpoena, | ||||||
| 7 | summons, warrant, citation to discover assets, or
court order | ||||||
| 8 | only after the bank mails a copy of the subpoena, summons, | ||||||
| 9 | warrant, citation to discover assets,
or court order to the | ||||||
| 10 | person establishing the relationship with the bank, if
living, | ||||||
| 11 | and, otherwise his personal representative, if known, at his | ||||||
| 12 | last known
address by first class mail, postage prepaid, unless | ||||||
| 13 | the bank is specifically
prohibited from notifying the person | ||||||
| 14 | by order of court or by applicable State
or federal law. A bank | ||||||
| 15 | shall not mail a copy of a subpoena to any person
pursuant to | ||||||
| 16 | this subsection if the subpoena was issued by a grand jury | ||||||
| 17 | under
the Statewide Grand Jury Act.
| ||||||
| 18 | (e) Any officer or employee of a bank who knowingly and
| ||||||
| 19 | willfully furnishes financial records in violation of this | ||||||
| 20 | Section is
guilty of a business offense and, upon conviction, | ||||||
| 21 | shall be fined not
more than $1,000.
| ||||||
| 22 | (f) Any person who knowingly and willfully induces or | ||||||
| 23 | attempts to
induce any officer or employee of a bank to | ||||||
| 24 | disclose financial
records in violation of this Section is | ||||||
| 25 | guilty of a business offense
and, upon conviction, shall be | ||||||
| 26 | fined not more than $1,000.
| ||||||
| |||||||
| |||||||
| 1 | (g) A bank shall be reimbursed for costs that are | ||||||
| 2 | reasonably necessary
and that have been directly incurred in | ||||||
| 3 | searching for, reproducing, or
transporting books, papers, | ||||||
| 4 | records, or other data required or
requested to be produced | ||||||
| 5 | pursuant to a lawful subpoena, summons, warrant, citation to | ||||||
| 6 | discover assets, or
court order. The Commissioner shall | ||||||
| 7 | determine the rates and conditions
under which payment may be | ||||||
| 8 | made.
| ||||||
| 9 | (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18; | ||||||
| 10 | 100-664, eff. 1-1-19; 100-888, eff. 8-14-18; revised | ||||||
| 11 | 10-22-18.)
| ||||||
| 12 | (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
| ||||||
| 13 | Sec. 48.3. Disclosure of reports of examinations
and | ||||||
| 14 | confidential
supervisory information;
limitations. | ||||||
| 15 | (a) Any report of examination, visitation, or | ||||||
| 16 | investigation prepared by
the Secretary under this Act, the | ||||||
| 17 | Electronic Fund Transfer
Act, the Corporate Fiduciary Act, the
| ||||||
| 18 | Illinois Bank Holding Company Act of 1957, and the Foreign
| ||||||
| 19 | Banking Office Act, any report of examination, visitation, or
| ||||||
| 20 | investigation prepared by the state regulatory
authority of | ||||||
| 21 | another state that examines a branch of an Illinois State bank | ||||||
| 22 | in
that state, any document or record prepared or obtained in
| ||||||
| 23 | connection with or relating to any
examination, visitation, or | ||||||
| 24 | investigation, and any record prepared or
obtained by the | ||||||
| 25 | Secretary to the extent that the record summarizes or
contains | ||||||
| |||||||
| |||||||
| 1 | information derived from any report, document, or record | ||||||
| 2 | described
in this subsection shall be deemed "confidential | ||||||
| 3 | supervisory information".
Confidential
supervisory information | ||||||
| 4 | shall not include any information or record
routinely prepared | ||||||
| 5 | by a bank or other financial institution and maintained in
the | ||||||
| 6 | ordinary course of business or any information or record that | ||||||
| 7 | is required
to be made publicly available pursuant to State or | ||||||
| 8 | federal law or rule.
Confidential supervisory information
| ||||||
| 9 | shall be the property of the Secretary and shall only be
| ||||||
| 10 | disclosed under the circumstances and for the purposes set | ||||||
| 11 | forth in this
Section.
| ||||||
| 12 | The Secretary may
disclose
confidential supervisory | ||||||
| 13 | information only under the following circumstances:
| ||||||
| 14 | (1) The Secretary may furnish confidential supervisory | ||||||
| 15 | information
to the Board of Governors of the
Federal | ||||||
| 16 | Reserve System, the federal reserve bank of the federal | ||||||
| 17 | reserve
district in which the State bank is located or in | ||||||
| 18 | which the parent or other
affiliate of the State bank is | ||||||
| 19 | located, any official or examiner
thereof duly accredited | ||||||
| 20 | for the purpose, or any other state regulator, federal
| ||||||
| 21 | regulator, or in the case of a foreign bank possessing a | ||||||
| 22 | certificate of
authority pursuant to the Foreign Banking | ||||||
| 23 | Office Act or a license pursuant to
the Foreign Bank | ||||||
| 24 | Representative Office Act, the bank regulator in the | ||||||
| 25 | country
where the foreign bank is chartered,
that the | ||||||
| 26 | Secretary determines to have an appropriate
regulatory | ||||||
| |||||||
| |||||||
| 1 | interest. Nothing contained in this Act shall be construed | ||||||
| 2 | to
limit the obligation of any member State bank to comply | ||||||
| 3 | with the
requirements relative to examinations and reports | ||||||
| 4 | of the Federal Reserve
Act and of the Board of Governors of | ||||||
| 5 | the Federal Reserve System or the
federal reserve bank of | ||||||
| 6 | the federal reserve district in which the bank is
located, | ||||||
| 7 | nor to limit in any way the powers of the Secretary with
| ||||||
| 8 | reference to examinations and reports.
| ||||||
| 9 | (2) The Secretary may furnish confidential supervisory | ||||||
| 10 | information
to the United States, any agency
thereof that | ||||||
| 11 | has insured a bank's deposits in whole or in part, or any | ||||||
| 12 | official
or examiner thereof duly accredited for the | ||||||
| 13 | purpose. Nothing contained in this Act shall be
construed | ||||||
| 14 | to limit the obligation relative to examinations and | ||||||
| 15 | reports of any
State bank, deposits in which are to any | ||||||
| 16 | extent insured by the United States,
any agency thereof, | ||||||
| 17 | nor to limit in any way the powers of the Secretary with
| ||||||
| 18 | reference to examination and reports of such bank.
| ||||||
| 19 | (2.5) The Secretary may furnish confidential | ||||||
| 20 | supervisory information to a Federal Home Loan Bank in | ||||||
| 21 | connection with any bank that is a member of the Federal | ||||||
| 22 | Home Loan Bank or in connection with any application by the | ||||||
| 23 | bank before the Federal Home Loan Bank. The confidential | ||||||
| 24 | supervisory information shall remain the property of the | ||||||
| 25 | Secretary and may not be further disclosed without the | ||||||
| 26 | Secretary's permission. | ||||||
| |||||||
| |||||||
| 1 | (3) The Secretary may furnish
confidential supervisory
| ||||||
| 2 | information
to the appropriate law
enforcement authorities | ||||||
| 3 | when the Secretary reasonably believes a
bank, which
the | ||||||
| 4 | Secretary has
caused to be examined, has been a victim of a | ||||||
| 5 | crime.
| ||||||
| 6 | (4) The Secretary may furnish confidential supervisory | ||||||
| 7 | information
relating to a bank or other
financial | ||||||
| 8 | institution, which the Secretary has caused to be
examined, | ||||||
| 9 | to be sent to the
administrator of the Revised Uniform | ||||||
| 10 | Disposition of Unclaimed Property Act.
| ||||||
| 11 | (5) The Secretary may furnish
confidential supervisory
| ||||||
| 12 | information relating to a bank or other
financial | ||||||
| 13 | institution, which
the Secretary has caused to be examined, | ||||||
| 14 | relating to its
performance of obligations under the | ||||||
| 15 | Illinois Income Tax Act and the
Illinois Estate and | ||||||
| 16 | Generation-Skipping Transfer Tax Act to the Illinois
| ||||||
| 17 | Department of Revenue.
| ||||||
| 18 | (6) The Secretary may furnish
confidential supervisory
| ||||||
| 19 | information relating to a bank or other
financial | ||||||
| 20 | institution, which
the Secretary has caused to be examined, | ||||||
| 21 | under the
federal Currency and Foreign Transactions | ||||||
| 22 | Reporting Act,
Title 31, United States Code, Section 1051 | ||||||
| 23 | et seq.
| ||||||
| 24 | (6.5) The Secretary may furnish
confidential | ||||||
| 25 | supervisory
information to any other agency or entity that | ||||||
| 26 | the Secretary determines
to
have a legitimate regulatory | ||||||
| |||||||
| |||||||
| 1 | interest.
| ||||||
| 2 | (7) The Secretary may furnish
confidential supervisory
| ||||||
| 3 | information under any other
statute that by its terms or by | ||||||
| 4 | regulations promulgated thereunder
requires the disclosure | ||||||
| 5 | of financial records other than by subpoena,
summons, | ||||||
| 6 | warrant, or court order.
| ||||||
| 7 | (8) At the request of the affected bank or other | ||||||
| 8 | financial institution,
the Secretary may furnish
| ||||||
| 9 | confidential supervisory
information relating to a bank or | ||||||
| 10 | other financial
institution, which
the Secretary has | ||||||
| 11 | caused to be examined, in connection with the
obtaining of | ||||||
| 12 | insurance coverage or the pursuit of an insurance claim for | ||||||
| 13 | or on
behalf of the bank or other financial institution; | ||||||
| 14 | provided that, when
possible, the Secretary shall disclose | ||||||
| 15 | only relevant information while
maintaining the | ||||||
| 16 | confidentiality of financial records not relevant to such
| ||||||
| 17 | insurance coverage or claim and, when appropriate, may | ||||||
| 18 | delete identifying data
relating to any person or | ||||||
| 19 | individual.
| ||||||
| 20 | (9) The Secretary may furnish a copy of a report of any | ||||||
| 21 | examination
performed by the Secretary of the condition and | ||||||
| 22 | affairs of any
electronic data processing entity to the | ||||||
| 23 | banks serviced by the electronic
data processing entity.
| ||||||
| 24 | (10) In addition to the foregoing circumstances, the | ||||||
| 25 | Secretary may,
but is not required to, furnish
confidential | ||||||
| 26 | supervisory information under the same circumstances | ||||||
| |||||||
| |||||||
| 1 | authorized for
the bank or financial
institution pursuant | ||||||
| 2 | to subsection
(b) of this Section, except that the | ||||||
| 3 | Secretary shall provide
confidential supervisory | ||||||
| 4 | information under circumstances described in paragraph (3) | ||||||
| 5 | of
subsection (b) of this Section only upon the request of | ||||||
| 6 | the bank or other
financial institution.
| ||||||
| 7 | (b) A bank or other financial institution or its officers, | ||||||
| 8 | agents, and
employees may disclose
confidential supervisory | ||||||
| 9 | information only under the
following circumstances:
| ||||||
| 10 | (1) to the board of directors of the bank or other | ||||||
| 11 | financial institution,
as well as the president, | ||||||
| 12 | vice-president, cashier, and other officers of the
bank or | ||||||
| 13 | other financial institution to whom the board of directors | ||||||
| 14 | may delegate
duties with respect to compliance with | ||||||
| 15 | recommendations for action, and to the board of directors | ||||||
| 16 | of a bank holding company that owns at
least 80% of the | ||||||
| 17 | outstanding stock of the bank or other financial | ||||||
| 18 | institution;
| ||||||
| 19 | (2) to attorneys for the bank or other financial | ||||||
| 20 | institution and to a
certified public accountant engaged by | ||||||
| 21 | the State bank or financial
institution to perform an | ||||||
| 22 | independent audit provided that the attorney or
certified | ||||||
| 23 | public accountant shall not permit the
confidential | ||||||
| 24 | supervisory
information to be further disseminated;
| ||||||
| 25 | (3) to any person who seeks to acquire a controlling | ||||||
| 26 | interest in, or who
seeks to merge with, the
bank or | ||||||
| |||||||
| |||||||
| 1 | financial institution, provided that all attorneys, | ||||||
| 2 | certified public
accountants, officers, agents, or | ||||||
| 3 | employees of that person shall agree to be
bound to respect | ||||||
| 4 | the confidentiality of the
confidential supervisory
| ||||||
| 5 | information and to not further disseminate the information | ||||||
| 6 | therein contained;
| ||||||
| 7 | (3.5) to a Federal Home Loan Bank of which it is a | ||||||
| 8 | member; | ||||||
| 9 | (4) (blank); | ||||||
| 10 | (4.5) to any attorney, accountant, consultant, or | ||||||
| 11 | other professional as needed to comply with any enforcement | ||||||
| 12 | action issued by the Secretary; or
| ||||||
| 13 | (5) to the bank's insurance company in relation to an | ||||||
| 14 | insurance
claim or
the effort by the bank to procure | ||||||
| 15 | insurance coverage, provided that, when
possible, the bank | ||||||
| 16 | shall disclose only information that is relevant to the
| ||||||
| 17 | insurance claim or that is necessary to procure the | ||||||
| 18 | insurance coverage, while
maintaining the confidentiality | ||||||
| 19 | of financial information pertaining to
customers. When | ||||||
| 20 | appropriate, the bank may delete identifying data relating | ||||||
| 21 | to
any person.
| ||||||
| 22 | The disclosure of confidential supervisory information by | ||||||
| 23 | a bank or other
financial institution pursuant to this | ||||||
| 24 | subsection (b) and the disclosure of
information to the | ||||||
| 25 | Secretary or other regulatory agency in connection with
any | ||||||
| 26 | examination, visitation, or investigation shall not constitute | ||||||
| |||||||
| |||||||
| 1 | a waiver of
any legal privilege otherwise available to the bank | ||||||
| 2 | or other financial
institution with respect to the information.
| ||||||
| 3 | (c) (1) Notwithstanding any other provision of this Act
or | ||||||
| 4 | any other law, confidential supervisory information shall be | ||||||
| 5 | the property of
the Secretary and shall be privileged from | ||||||
| 6 | disclosure to any person except
as provided in this Section. No | ||||||
| 7 | person in possession of confidential
supervisory information | ||||||
| 8 | may disclose that information for any reason or under
any | ||||||
| 9 | circumstances not specified in this Section without the prior | ||||||
| 10 | authorization
of the Secretary. Any person upon whom a demand | ||||||
| 11 | for production of confidential
supervisory information is | ||||||
| 12 | made, whether by subpoena, order, or other judicial
or | ||||||
| 13 | administrative process, must withhold production of the | ||||||
| 14 | confidential
supervisory information and must notify the | ||||||
| 15 | Secretary of the demand, at
which time the Secretary is | ||||||
| 16 | authorized to intervene for the purpose of
enforcing the | ||||||
| 17 | limitations of this Section or seeking the withdrawal or
| ||||||
| 18 | termination of the attempt to compel production of the | ||||||
| 19 | confidential
supervisory information.
| ||||||
| 20 | (2) Any request for discovery or disclosure of confidential | ||||||
| 21 | supervisory
information, whether by subpoena, order, or other | ||||||
| 22 | judicial or administrative
process, shall be made to the | ||||||
| 23 | Secretary, and the Secretary shall
determine within 15 days | ||||||
| 24 | whether to disclose the information pursuant to
procedures and | ||||||
| 25 | standards that the Secretary shall establish by rule. If the | ||||||
| 26 | Secretary
determines that such information will not be | ||||||
| |||||||
| |||||||
| 1 | disclosed, the Secretary's
decision shall be subject to | ||||||
| 2 | judicial review under the
provisions of the Administrative | ||||||
| 3 | Review Law, and venue shall be in either
Sangamon County or | ||||||
| 4 | Cook County.
| ||||||
| 5 | (3) Any court order that compels disclosure of confidential | ||||||
| 6 | supervisory
information may be immediately appealed by the | ||||||
| 7 | Secretary, and the order
shall
be automatically stayed pending | ||||||
| 8 | the outcome of the appeal.
| ||||||
| 9 | (d) If any officer, agent, attorney, or employee of a bank | ||||||
| 10 | or
financial institution knowingly and willfully furnishes
| ||||||
| 11 | confidential supervisory information in violation of this | ||||||
| 12 | Section, the Secretary
may impose a
civil monetary penalty up | ||||||
| 13 | to $1,000 for the violation against
the officer, agent, | ||||||
| 14 | attorney, or employee.
| ||||||
| 15 | (Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17; | ||||||
| 16 | 100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)
| ||||||
| 17 | (205 ILCS 5/65) (from Ch. 17, par. 377)
| ||||||
| 18 | Sec. 65. Dividends; dissolution. From time to time during a | ||||||
| 19 | receivership other than a receivership conducted by
the Federal | ||||||
| 20 | Deposit Insurance Corporation, the Commissioner shall make and
| ||||||
| 21 | pay from monies of the bank a ratable dividend on all claims as | ||||||
| 22 | may be
proved to his or her satisfaction or adjudicated by the | ||||||
| 23 | court. Claims so
proven or adjudicated shall bear interest at | ||||||
| 24 | the rate of 3% per
annum from the date of the appointment of | ||||||
| 25 | the receiver to the date of
payment, but all dividends on a | ||||||
| |||||||
| |||||||
| 1 | claim shall be applied first to principal.
In computing the | ||||||
| 2 | amount of any dividend to be paid, if the Commissioner
deems it | ||||||
| 3 | desirable in the interests of economy of administration and
to | ||||||
| 4 | the interest of the bank and its creditors, he or she may pay | ||||||
| 5 | up to the
amount of $10 of each claim or unpaid portion thereof | ||||||
| 6 | in full. As the
proceeds of the assets of the bank are | ||||||
| 7 | collected in the course of
liquidation, the Commissioner shall | ||||||
| 8 | make and pay further dividends on all
claims previously proven | ||||||
| 9 | or adjudicated. After one year from the
entry of a judgment of | ||||||
| 10 | dissolution, all unclaimed dividends shall be remitted
to the | ||||||
| 11 | State Treasurer in accordance with the Revised Uniform | ||||||
| 12 | Disposition of Unclaimed
Property Act, as now or hereafter | ||||||
| 13 | amended, together with a list of all unpaid
claimants, their | ||||||
| 14 | last known addresses and the amounts unpaid.
| ||||||
| 15 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 16 | Section 55. The Savings Bank Act is amended by changing | ||||||
| 17 | Sections 4013, 9012, and 10090 as follows:
| ||||||
| 18 | (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||||||
| 19 | Sec. 4013. Access to books and records; communication with | ||||||
| 20 | members
and shareholders. | ||||||
| 21 | (a) Every member or shareholder shall have the right to | ||||||
| 22 | inspect books
and records of the savings bank that pertain to | ||||||
| 23 | his accounts. Otherwise,
the right of inspection and | ||||||
| 24 | examination of the books and records shall be
limited as | ||||||
| |||||||
| |||||||
| 1 | provided in this Act, and no other person shall have access to
| ||||||
| 2 | the books and records nor shall be entitled to a list of the | ||||||
| 3 | members or
shareholders.
| ||||||
| 4 | (b) For the purpose of this Section, the term "financial | ||||||
| 5 | records" means
any original, any copy, or any summary of (1) a | ||||||
| 6 | document granting signature
authority over a deposit or | ||||||
| 7 | account; (2) a statement, ledger card, or other
record on any | ||||||
| 8 | deposit or account that shows each transaction in or with
| ||||||
| 9 | respect to that account; (3) a check, draft, or money order | ||||||
| 10 | drawn on a
savings bank or issued and payable by a savings | ||||||
| 11 | bank; or (4) any other item
containing information pertaining | ||||||
| 12 | to any relationship established in the
ordinary course of a | ||||||
| 13 | savings bank's business between a savings bank and
its | ||||||
| 14 | customer, including financial statements or other financial | ||||||
| 15 | information
provided by the member or shareholder.
| ||||||
| 16 | (c) This Section does not prohibit:
| ||||||
| 17 | (1) The preparation, examination, handling, or | ||||||
| 18 | maintenance of any
financial records by any officer, | ||||||
| 19 | employee, or agent of a savings bank
having custody of | ||||||
| 20 | records or examination of records by a certified public
| ||||||
| 21 | accountant engaged by the savings bank to perform an | ||||||
| 22 | independent audit.
| ||||||
| 23 | (2) The examination of any financial records by, or the | ||||||
| 24 | furnishing of
financial records by a savings bank to, any | ||||||
| 25 | officer, employee, or agent of
the Commissioner of Banks | ||||||
| 26 | and Real Estate or the federal depository
institution | ||||||
| |||||||
| |||||||
| 1 | regulator for use
solely in
the exercise of his duties as | ||||||
| 2 | an officer, employee, or agent.
| ||||||
| 3 | (3) The publication of data furnished from financial | ||||||
| 4 | records relating
to members or holders of capital where the | ||||||
| 5 | data cannot be identified to any
particular member, | ||||||
| 6 | shareholder, or account.
| ||||||
| 7 | (4) The making of reports or returns required under | ||||||
| 8 | Chapter 61 of the
Internal Revenue Code of 1986.
| ||||||
| 9 | (5) Furnishing information concerning the dishonor of | ||||||
| 10 | any negotiable
instrument permitted to be disclosed under | ||||||
| 11 | the Uniform Commercial Code.
| ||||||
| 12 | (6) The exchange in the regular course of business of | ||||||
| 13 | (i) credit
information between a savings bank and other | ||||||
| 14 | savings banks or financial
institutions or commercial | ||||||
| 15 | enterprises, directly or through a consumer
reporting | ||||||
| 16 | agency
or (ii) financial records or information derived | ||||||
| 17 | from financial records
between a savings bank and other | ||||||
| 18 | savings banks or financial institutions or
commercial | ||||||
| 19 | enterprises for the purpose of conducting due diligence | ||||||
| 20 | pursuant to
a purchase or sale involving the savings bank | ||||||
| 21 | or assets or liabilities of the
savings bank.
| ||||||
| 22 | (7) The furnishing of information to the appropriate | ||||||
| 23 | law enforcement
authorities where the savings bank | ||||||
| 24 | reasonably believes it has been the
victim of a crime.
| ||||||
| 25 | (8) The furnishing of information pursuant to the | ||||||
| 26 | Revised Uniform Disposition of Unclaimed Property Act.
| ||||||
| |||||||
| |||||||
| 1 | (9) The furnishing of information pursuant to the | ||||||
| 2 | Illinois Income Tax
Act
and the Illinois Estate and | ||||||
| 3 | Generation-Skipping Transfer Tax Act.
| ||||||
| 4 | (10) The furnishing of information pursuant to the | ||||||
| 5 | federal Currency
and Foreign Transactions Reporting Act, | ||||||
| 6 | (Title 31, United States Code,
Section 1051 et seq.).
| ||||||
| 7 | (11) The furnishing of information pursuant to any | ||||||
| 8 | other statute which
by its terms or by regulations | ||||||
| 9 | promulgated thereunder requires the
disclosure of | ||||||
| 10 | financial records other than by subpoena, summons, | ||||||
| 11 | warrant, or
court order.
| ||||||
| 12 | (12) The furnishing of information in accordance with | ||||||
| 13 | the federal
Personal Responsibility and Work Opportunity | ||||||
| 14 | Reconciliation Act of 1996.
Any savings bank governed by | ||||||
| 15 | this Act shall enter into an agreement for data
exchanges | ||||||
| 16 | with a State agency provided the State agency
pays to the | ||||||
| 17 | savings bank a reasonable fee not to exceed its
actual cost | ||||||
| 18 | incurred. A savings bank
providing
information in | ||||||
| 19 | accordance with this item shall not be liable to any | ||||||
| 20 | account
holder or other person for any disclosure of | ||||||
| 21 | information to a State agency, for
encumbering or | ||||||
| 22 | surrendering any assets held by the savings bank in | ||||||
| 23 | response to
a lien
or order to withhold and deliver issued | ||||||
| 24 | by a State agency, or for any other
action taken pursuant | ||||||
| 25 | to this item, including individual or mechanical errors,
| ||||||
| 26 | provided the action does not constitute gross negligence or | ||||||
| |||||||
| |||||||
| 1 | willful misconduct.
A savings bank shall have no obligation | ||||||
| 2 | to hold, encumber, or surrender
assets until
it has been | ||||||
| 3 | served with a subpoena, summons, warrant, court or | ||||||
| 4 | administrative
order,
lien, or levy.
| ||||||
| 5 | (13) The furnishing of information to law enforcement | ||||||
| 6 | authorities, the
Illinois Department on
Aging and its | ||||||
| 7 | regional administrative and provider agencies, the | ||||||
| 8 | Department of
Human Services Office
of Inspector General, | ||||||
| 9 | or public guardians: (i) upon subpoena by the investigatory | ||||||
| 10 | entity or the guardian, or (ii) if there is suspicion by | ||||||
| 11 | the savings bank that a
customer who is an elderly
person | ||||||
| 12 | or person with a disability has been or may become the | ||||||
| 13 | victim of financial exploitation.
For the purposes of this
| ||||||
| 14 | item (13), the term: (i) "elderly person" means a person | ||||||
| 15 | who is 60 or more
years of age, (ii) "person with a | ||||||
| 16 | disability" means a person who has or reasonably appears to | ||||||
| 17 | the savings bank to
have a physical or mental
disability | ||||||
| 18 | that impairs his or her ability to seek or obtain | ||||||
| 19 | protection from or
prevent financial
exploitation, and | ||||||
| 20 | (iii) "financial exploitation" means tortious or illegal | ||||||
| 21 | use
of the assets or resources of
an elderly person or | ||||||
| 22 | person with a disability, and includes, without | ||||||
| 23 | limitation,
misappropriation of the assets or resources of | ||||||
| 24 | the elderly person or person with a disability by undue | ||||||
| 25 | influence, breach of fiduciary
relationship, intimidation,
| ||||||
| 26 | fraud, deception, extortion, or the use of assets or | ||||||
| |||||||
| |||||||
| 1 | resources in any manner
contrary to law. A savings
bank or | ||||||
| 2 | person furnishing information pursuant to this item (13) | ||||||
| 3 | shall be
entitled to the same rights and
protections as a | ||||||
| 4 | person furnishing information under the Adult Protective | ||||||
| 5 | Services Act and the Illinois
Domestic Violence Act of | ||||||
| 6 | 1986.
| ||||||
| 7 | (14) The disclosure of financial records or | ||||||
| 8 | information as necessary to
effect, administer, or enforce | ||||||
| 9 | a transaction requested or authorized by the
member or | ||||||
| 10 | holder of capital, or in connection with:
| ||||||
| 11 | (A) servicing or processing a financial product or | ||||||
| 12 | service requested or
authorized by the member or holder | ||||||
| 13 | of capital;
| ||||||
| 14 | (B) maintaining or servicing an account of a member | ||||||
| 15 | or holder of capital
with the savings bank; or
| ||||||
| 16 | (C) a proposed or actual securitization or | ||||||
| 17 | secondary market sale
(including sales of servicing | ||||||
| 18 | rights) related to a
transaction of a member or holder | ||||||
| 19 | of capital.
| ||||||
| 20 | Nothing in this item (14), however, authorizes the sale | ||||||
| 21 | of the financial
records or information of a member or | ||||||
| 22 | holder of capital without the consent of
the member or | ||||||
| 23 | holder of capital.
| ||||||
| 24 | (15) The exchange in the regular course of business of | ||||||
| 25 | information between
a
savings bank and any commonly owned | ||||||
| 26 | affiliate of the savings bank, subject to
the provisions of | ||||||
| |||||||
| |||||||
| 1 | the Financial Institutions Insurance Sales Law.
| ||||||
| 2 | (16) The disclosure of financial records or | ||||||
| 3 | information as necessary to
protect against or prevent | ||||||
| 4 | actual or potential fraud, unauthorized
transactions, | ||||||
| 5 | claims, or other liability.
| ||||||
| 6 | (17)(a) The disclosure of financial records or | ||||||
| 7 | information
related to a private label credit program | ||||||
| 8 | between a financial
institution and a private label party | ||||||
| 9 | in connection
with that private label credit program. Such | ||||||
| 10 | information
is limited to outstanding balance, available | ||||||
| 11 | credit, payment and
performance and account history, | ||||||
| 12 | product references, purchase
information,
and information | ||||||
| 13 | related to the identity of the
customer.
| ||||||
| 14 | (b)(1) For purposes of this paragraph (17) of | ||||||
| 15 | subsection
(c) of Section 4013, a "private label credit | ||||||
| 16 | program" means a
credit program involving a financial | ||||||
| 17 | institution and a private label
party that is used by a | ||||||
| 18 | customer of the financial institution and the
private label | ||||||
| 19 | party primarily for payment for goods or services
sold, | ||||||
| 20 | manufactured, or distributed by a private label party.
| ||||||
| 21 | (2) For purposes of this paragraph (17) of subsection | ||||||
| 22 | (c)
of Section 4013, a "private label party" means, with | ||||||
| 23 | respect to a
private label credit program, any of the | ||||||
| 24 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
| 25 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
| 26 | agent, or service provider.
| ||||||
| |||||||
| |||||||
| 1 | (18)(a) The furnishing of financial records of a | ||||||
| 2 | customer to the Department to aid the Department's initial | ||||||
| 3 | determination or subsequent re-determination of the | ||||||
| 4 | customer's eligibility for Medicaid and Medicaid long-term | ||||||
| 5 | care benefits for long-term care services, provided that | ||||||
| 6 | the savings bank receives the written consent and | ||||||
| 7 | authorization of the customer, which shall: | ||||||
| 8 | (1) have the customer's signature notarized; | ||||||
| 9 | (2) be signed by at least one witness who certifies | ||||||
| 10 | that he or she believes the customer to be of sound | ||||||
| 11 | mind and memory; | ||||||
| 12 | (3) be tendered to the savings bank at the earliest | ||||||
| 13 | practicable time following its execution, | ||||||
| 14 | certification, and notarization; | ||||||
| 15 | (4) specifically limit the disclosure of the | ||||||
| 16 | customer's financial records to the Department; and | ||||||
| 17 | (5) be in substantially the following form:
| ||||||
| 18 | CUSTOMER CONSENT AND AUTHORIZATION | ||||||
| 19 | FOR RELEASE OF FINANCIAL RECORDS | ||||||
| 20 | I, ......................................., hereby authorize | ||||||
| 21 | (Name of Customer)
| ||||||
| 22 | ............................................................. | ||||||
| 23 | (Name of Financial Institution)
| ||||||
| |||||||
| |||||||
| 1 | ............................................................. | ||||||
| 2 | (Address of Financial Institution)
| ||||||
| 3 | to disclose the following financial records:
| ||||||
| 4 | any and all information concerning my deposit, savings, money | ||||||
| 5 | market, certificate of deposit, individual retirement, | ||||||
| 6 | retirement plan, 401(k) plan, incentive plan, employee benefit | ||||||
| 7 | plan, mutual fund and loan accounts (including, but not limited | ||||||
| 8 | to, any indebtedness or obligation for which I am a | ||||||
| 9 | co-borrower, co-obligor, guarantor, or surety), and any and all | ||||||
| 10 | other accounts in which I have an interest and any other | ||||||
| 11 | information regarding me in the possession of the Financial | ||||||
| 12 | Institution,
| ||||||
| 13 | to the Illinois Department of Human Services or the Illinois | ||||||
| 14 | Department of Healthcare and Family Services, or both ("the | ||||||
| 15 | Department"), for the following purpose(s):
| ||||||
| 16 | to aid in the initial determination or re-determination by the | ||||||
| 17 | State of Illinois of my eligibility for Medicaid long-term care | ||||||
| 18 | benefits, pursuant to applicable law.
| ||||||
| 19 | I understand that this Consent and Authorization may be revoked | ||||||
| 20 | by me in writing at any time before my financial records, as | ||||||
| |||||||
| |||||||
| 1 | described above, are disclosed, and that this Consent and | ||||||
| 2 | Authorization is valid until the Financial Institution | ||||||
| 3 | receives my written revocation. This Consent and Authorization | ||||||
| 4 | shall constitute valid authorization for the Department | ||||||
| 5 | identified above to inspect all such financial records set | ||||||
| 6 | forth above, and to request and receive copies of such | ||||||
| 7 | financial records from the Financial Institution (subject to | ||||||
| 8 | such records search and reproduction reimbursement policies as | ||||||
| 9 | the Financial Institution may have in place). An executed copy | ||||||
| 10 | of this Consent and Authorization shall be sufficient and as | ||||||
| 11 | good as the original and permission is hereby granted to honor | ||||||
| 12 | a photostatic or electronic copy of this Consent and | ||||||
| 13 | Authorization. Disclosure is strictly limited to the | ||||||
| 14 | Department identified above and no other person or entity shall | ||||||
| 15 | receive my financial records pursuant to this Consent and | ||||||
| 16 | Authorization. By signing this form, I agree to indemnify and | ||||||
| 17 | hold the Financial Institution harmless from any and all | ||||||
| 18 | claims, demands, and losses, including reasonable attorneys | ||||||
| 19 | fees and expenses, arising from or incurred in its reliance on | ||||||
| 20 | this Consent and Authorization. As used herein, "Customer" | ||||||
| 21 | shall mean "Member" if the Financial Institution is a credit | ||||||
| 22 | union.
| ||||||
| 23 | ....................... ...................... | ||||||
| 24 | (Date) (Signature of Customer)
| ||||||
| |||||||
| |||||||
| 1 | ...................... | ||||||
| 2 | ...................... | ||||||
| 3 | (Address of Customer)
| ||||||
| 4 | ...................... | ||||||
| 5 | (Customer's birth date) | ||||||
| 6 | (month/day/year)
| ||||||
| 7 | The undersigned witness certifies that ................., | ||||||
| 8 | known to me to be the same person whose name is subscribed as | ||||||
| 9 | the customer to the foregoing Consent and Authorization, | ||||||
| 10 | appeared before me and the notary public and acknowledged | ||||||
| 11 | signing and delivering the instrument as his or her free and | ||||||
| 12 | voluntary act for the uses and purposes therein set forth. I | ||||||
| 13 | believe him or her to be of sound mind and memory. The | ||||||
| 14 | undersigned witness also certifies that the witness is not an | ||||||
| 15 | owner, operator, or relative of an owner or operator of a | ||||||
| 16 | long-term care facility in which the customer is a patient or | ||||||
| 17 | resident.
| ||||||
| 18 | Dated: ................. ...................... | ||||||
| 19 | (Signature of Witness)
| ||||||
| 20 | ...................... | ||||||
| 21 | (Print Name of Witness)
| ||||||
| |||||||
| |||||||
| 1 | ...................... | ||||||
| 2 | ...................... | ||||||
| 3 | (Address of Witness)
| ||||||
| 4 | State of Illinois) | ||||||
| 5 | ) ss. | ||||||
| 6 | County of .......)
| ||||||
| 7 | The undersigned, a notary public in and for the above county | ||||||
| 8 | and state, certifies that .........., known to me to be the | ||||||
| 9 | same person whose name is subscribed as the customer to the | ||||||
| 10 | foregoing Consent and Authorization, appeared before me | ||||||
| 11 | together with the witness, .........., in person and | ||||||
| 12 | acknowledged signing and delivering the instrument as the free | ||||||
| 13 | and voluntary act of the customer for the uses and purposes | ||||||
| 14 | therein set forth.
| ||||||
| 15 | Dated:....................................................... | ||||||
| 16 | Notary Public:............................................... | ||||||
| 17 | My commission expires:.......................................
| ||||||
| 18 | (b) In no event shall the savings bank distribute the | ||||||
| 19 | customer's financial records to the long-term care | ||||||
| 20 | facility from which the customer seeks initial or | ||||||
| 21 | continuing residency or long-term care services. | ||||||
| 22 | (c) A savings bank providing financial records of a | ||||||
| |||||||
| |||||||
| 1 | customer in good faith relying on a consent and | ||||||
| 2 | authorization executed and tendered in accordance with | ||||||
| 3 | this paragraph (18) shall not be liable to the customer or | ||||||
| 4 | any other person in relation to the savings bank's | ||||||
| 5 | disclosure of the customer's financial records to the | ||||||
| 6 | Department. The customer signing the consent and | ||||||
| 7 | authorization shall indemnify and hold the savings bank | ||||||
| 8 | harmless that relies in good faith upon the consent and | ||||||
| 9 | authorization and incurs a loss because of such reliance. | ||||||
| 10 | The savings bank recovering under this indemnification | ||||||
| 11 | provision shall also be entitled to reasonable attorney's | ||||||
| 12 | fees and the expenses of recovery. | ||||||
| 13 | (d) A savings bank shall be reimbursed by the customer | ||||||
| 14 | for all costs reasonably necessary and directly incurred in | ||||||
| 15 | searching for, reproducing, and disclosing a customer's | ||||||
| 16 | financial records required or requested to be produced | ||||||
| 17 | pursuant to any consent and authorization executed under | ||||||
| 18 | this paragraph (18). The requested financial records shall | ||||||
| 19 | be delivered to the Department within 10 days after | ||||||
| 20 | receiving a properly executed consent and authorization or | ||||||
| 21 | at the earliest practicable time thereafter if the | ||||||
| 22 | requested records cannot be delivered within 10 days, but | ||||||
| 23 | delivery may be delayed until the final reimbursement of | ||||||
| 24 | all costs is received by the savings bank. The savings bank | ||||||
| 25 | may honor a photostatic or electronic copy of a properly | ||||||
| 26 | executed consent and authorization. | ||||||
| |||||||
| |||||||
| 1 | (e) Nothing in this paragraph (18) shall impair, | ||||||
| 2 | abridge, or abrogate the right of a customer to: | ||||||
| 3 | (1) directly disclose his or her financial records | ||||||
| 4 | to the Department or any other person; or | ||||||
| 5 | (2) authorize his or her attorney or duly appointed | ||||||
| 6 | agent to request and obtain the customer's financial | ||||||
| 7 | records and disclose those financial records to the | ||||||
| 8 | Department. | ||||||
| 9 | (f) For purposes of this paragraph (18), "Department" | ||||||
| 10 | means the Department of Human Services and the Department | ||||||
| 11 | of Healthcare and Family Services or any successor | ||||||
| 12 | administrative agency of either agency. | ||||||
| 13 | (d) A savings bank may not disclose to any person, except | ||||||
| 14 | to the member
or holder of capital or his duly authorized | ||||||
| 15 | agent, any financial records
relating to that member or | ||||||
| 16 | shareholder of the savings bank unless:
| ||||||
| 17 | (1) the member or shareholder has authorized | ||||||
| 18 | disclosure to the person; or
| ||||||
| 19 | (2) the financial records are disclosed in response to | ||||||
| 20 | a lawful
subpoena, summons, warrant, citation to discover | ||||||
| 21 | assets, or court order that meets the requirements of
| ||||||
| 22 | subsection (e) of this Section.
| ||||||
| 23 | (e) A savings bank shall disclose financial records under | ||||||
| 24 | subsection (d)
of this Section pursuant to a lawful subpoena, | ||||||
| 25 | summons, warrant, citation to discover assets, or court
order | ||||||
| 26 | only after the savings bank mails a copy of the subpoena, | ||||||
| |||||||
| |||||||
| 1 | summons,
warrant, citation to discover assets, or court order | ||||||
| 2 | to the person establishing the relationship with
the savings | ||||||
| 3 | bank, if living, and otherwise, his personal representative, if
| ||||||
| 4 | known, at his last known address by first class mail, postage | ||||||
| 5 | prepaid,
unless the savings bank is specifically prohibited | ||||||
| 6 | from notifying the
person by order of court.
| ||||||
| 7 | (f) Any officer or employee of a savings bank who knowingly | ||||||
| 8 | and
willfully furnishes financial records in violation of this | ||||||
| 9 | Section is
guilty of a business offense and, upon conviction, | ||||||
| 10 | shall be fined not
more than $1,000.
| ||||||
| 11 | (g) Any person who knowingly and willfully induces or | ||||||
| 12 | attempts to
induce any officer or employee of a savings bank to | ||||||
| 13 | disclose financial
records in violation of this Section is | ||||||
| 14 | guilty of a business offense and,
upon conviction, shall be | ||||||
| 15 | fined not more than $1,000.
| ||||||
| 16 | (h) If any member or shareholder desires to communicate | ||||||
| 17 | with the other
members or shareholders of the savings bank with | ||||||
| 18 | reference to any question
pending or to be presented at an | ||||||
| 19 | annual or special meeting, the savings
bank shall give that | ||||||
| 20 | person, upon request, a statement of the approximate
number of | ||||||
| 21 | members or shareholders entitled to vote at the meeting and an
| ||||||
| 22 | estimate of the cost of preparing and mailing the | ||||||
| 23 | communication. The
requesting member shall submit the | ||||||
| 24 | communication to the Commissioner
who, upon finding it to be | ||||||
| 25 | appropriate and truthful, shall direct that it
be prepared and | ||||||
| 26 | mailed to the members upon the requesting member's or
| ||||||
| |||||||
| |||||||
| 1 | shareholder's payment or adequate provision for payment of the | ||||||
| 2 | expenses of
preparation and mailing.
| ||||||
| 3 | (i) A savings bank shall be reimbursed for costs that are | ||||||
| 4 | necessary and
that have been directly incurred in searching | ||||||
| 5 | for, reproducing, or
transporting books, papers, records, or | ||||||
| 6 | other data of a customer required
to be reproduced pursuant to | ||||||
| 7 | a lawful subpoena, warrant, citation to discover assets, or | ||||||
| 8 | court order.
| ||||||
| 9 | (j) Notwithstanding the provisions of this Section, a | ||||||
| 10 | savings bank may
sell or otherwise make use of lists of | ||||||
| 11 | customers' names and addresses. All
other information | ||||||
| 12 | regarding a customer's account is subject to the
disclosure | ||||||
| 13 | provisions of this Section. At the request of any customer,
| ||||||
| 14 | that customer's name and address shall be deleted from any list | ||||||
| 15 | that is to
be sold or used in any other manner beyond | ||||||
| 16 | identification of the customer's
accounts.
| ||||||
| 17 | (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18; | ||||||
| 18 | 100-201, eff. 8-18-17; 100-664, eff. 1-1-19.)
| ||||||
| 19 | (205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
| ||||||
| 20 | Sec. 9012. Disclosure of reports of examinations and | ||||||
| 21 | confidential
supervisory information; limitations. | ||||||
| 22 | (a) Any report of examination, visitation, or | ||||||
| 23 | investigation prepared by
the Secretary
under this Act, any | ||||||
| 24 | report of examination, visitation, or investigation
prepared | ||||||
| 25 | by the state
regulatory authority of another state that | ||||||
| |||||||
| |||||||
| 1 | examines a branch of an Illinois
State savings bank in
that | ||||||
| 2 | state, any document or record prepared or obtained in | ||||||
| 3 | connection with or
relating to any
examination, visitation, or | ||||||
| 4 | investigation, and any record prepared or obtained
by the | ||||||
| 5 | Secretary
to the extent that the record summarizes or contains | ||||||
| 6 | information
derived from
any report, document, or record | ||||||
| 7 | described in this subsection shall be deemed
confidential
| ||||||
| 8 | supervisory information. "Confidential supervisory | ||||||
| 9 | information" shall not
include any information or
record | ||||||
| 10 | routinely prepared by a savings bank and maintained in the | ||||||
| 11 | ordinary
course of business or any
information or record that | ||||||
| 12 | is required to be made publicly available pursuant
to State or | ||||||
| 13 | federal law
or rule. Confidential supervisory information | ||||||
| 14 | shall be the property of the Secretary
and shall
only be | ||||||
| 15 | disclosed under the circumstances and for the purposes set | ||||||
| 16 | forth in
this Section.
| ||||||
| 17 | The Secretary may disclose confidential supervisory | ||||||
| 18 | information only under
the following
circumstances:
| ||||||
| 19 | (1) The Secretary may furnish confidential supervisory | ||||||
| 20 | information to
federal and state
depository institution | ||||||
| 21 | regulators, or any official or examiner thereof duly
| ||||||
| 22 | accredited for the
purpose. Nothing contained in this Act | ||||||
| 23 | shall be construed to limit the
obligation of any savings
| ||||||
| 24 | bank to comply with the requirements relative to | ||||||
| 25 | examinations and reports nor
to limit in any way
the powers | ||||||
| 26 | of the Secretary relative to examinations and reports.
| ||||||
| |||||||
| |||||||
| 1 | (2) The Secretary may furnish confidential supervisory | ||||||
| 2 | information to
the United
States or any agency thereof that | ||||||
| 3 | to any extent has insured a savings bank's
deposits, or any
| ||||||
| 4 | official or examiner thereof duly accredited for the | ||||||
| 5 | purpose. Nothing contained
in this Act shall be
construed | ||||||
| 6 | to limit the obligation relative to examinations and | ||||||
| 7 | reports of any
savings bank
in which deposits are to any | ||||||
| 8 | extent insured by the United States or any agency
thereof
| ||||||
| 9 | nor to limit in any way
the powers of the Secretary with | ||||||
| 10 | reference to examination and reports of the
savings bank.
| ||||||
| 11 | (2.5) The Secretary may furnish confidential | ||||||
| 12 | supervisory information to a Federal Home Loan Bank in | ||||||
| 13 | connection with any savings bank that is a member of the | ||||||
| 14 | Federal Home Loan Bank or in connection with any | ||||||
| 15 | application by the savings bank before the Federal Home | ||||||
| 16 | Loan Bank. The confidential supervisory information shall | ||||||
| 17 | remain the property of the Secretary and may not be further | ||||||
| 18 | disclosed without the Secretary's permission. | ||||||
| 19 | (3) The Secretary may furnish confidential supervisory | ||||||
| 20 | information to
the appropriate
law enforcement authorities | ||||||
| 21 | when the Secretary reasonably believes a savings
bank, | ||||||
| 22 | which the Secretary
has caused to be examined, has been a | ||||||
| 23 | victim of a crime.
| ||||||
| 24 | (4) The Secretary may furnish confidential supervisory | ||||||
| 25 | information
related
to a
savings bank, which the Secretary | ||||||
| 26 | has caused to be examined, to the
administrator of the
| ||||||
| |||||||
| |||||||
| 1 | Revised Uniform Disposition of Unclaimed Property Act.
| ||||||
| 2 | (5) The Secretary may furnish confidential supervisory | ||||||
| 3 | information
relating to a
savings bank, which the Secretary | ||||||
| 4 | has caused to be examined, relating to its
performance
of | ||||||
| 5 | obligations under the Illinois Income Tax Act and the | ||||||
| 6 | Illinois Estate and
Generation-Skipping
Transfer Tax Act | ||||||
| 7 | to the Illinois Department of Revenue.
| ||||||
| 8 | (6) The Secretary may furnish confidential supervisory | ||||||
| 9 | information
relating to a
savings bank, which the Secretary | ||||||
| 10 | has caused to be examined, under the
federal Currency
and | ||||||
| 11 | Foreign Transactions Reporting Act, 31 United States Code, | ||||||
| 12 | Section
1051 et seq.
| ||||||
| 13 | (7) The Secretary may furnish confidential supervisory | ||||||
| 14 | information to
any other agency
or entity that the | ||||||
| 15 | Secretary determines to have a legitimate regulatory
| ||||||
| 16 | interest.
| ||||||
| 17 | (8) The Secretary may furnish confidential supervisory | ||||||
| 18 | information as
otherwise
permitted or required by this Act | ||||||
| 19 | and may furnish confidential supervisory
information under | ||||||
| 20 | any
other statute that by its terms or by regulations | ||||||
| 21 | promulgated thereunder
requires the disclosure
of | ||||||
| 22 | financial records other than by subpoena, summons, | ||||||
| 23 | warrant, or court order.
| ||||||
| 24 | (9) At the request of the affected savings bank, the | ||||||
| 25 | Secretary may
furnish confidential
supervisory information | ||||||
| 26 | relating to the savings bank, which the Secretary
has | ||||||
| |||||||
| |||||||
| 1 | caused to be
examined, in connection with the obtaining of | ||||||
| 2 | insurance coverage or the pursuit
of an insurance
claim for | ||||||
| 3 | or on behalf of the savings bank; provided that, when | ||||||
| 4 | possible, the Secretary
shall
disclose only relevant | ||||||
| 5 | information while maintaining the confidentiality of
| ||||||
| 6 | financial records
not relevant to such insurance coverage | ||||||
| 7 | or claim and, when appropriate, may
delete identifying data
| ||||||
| 8 | relating to any person.
| ||||||
| 9 | (10) The Secretary may furnish a copy of a report of | ||||||
| 10 | any examination
performed by
the Secretary of the condition | ||||||
| 11 | and affairs of any electronic data processing
entity to the
| ||||||
| 12 | savings banks serviced by the electronic data processing | ||||||
| 13 | entity.
| ||||||
| 14 | (11) In addition to the foregoing circumstances, the | ||||||
| 15 | Secretary may, but
is not
required to, furnish confidential | ||||||
| 16 | supervisory information under the same
circumstances | ||||||
| 17 | authorized
for the savings bank pursuant to subsection (b) | ||||||
| 18 | of this Section, except that
the Secretary shall
provide | ||||||
| 19 | confidential supervisory information under circumstances | ||||||
| 20 | described in
paragraph (3) of
subsection (b) of this | ||||||
| 21 | Section only upon the request of the savings bank.
| ||||||
| 22 | (b) A savings bank or its officers, agents, and employees | ||||||
| 23 | may disclose
confidential
supervisory information only under | ||||||
| 24 | the following circumstances:
| ||||||
| 25 | (1) to the board of directors of the savings bank, as | ||||||
| 26 | well as the
president, vice-president,
cashier, and other | ||||||
| |||||||
| |||||||
| 1 | officers of the savings bank to whom the board of directors
| ||||||
| 2 | may delegate
duties with respect to compliance with | ||||||
| 3 | recommendations for action, and to the
board of
directors | ||||||
| 4 | of a savings bank holding company that owns at least 80% of | ||||||
| 5 | the
outstanding stock of the
savings bank or other | ||||||
| 6 | financial institution.
| ||||||
| 7 | (2) to attorneys for the savings bank and to a | ||||||
| 8 | certified public
accountant engaged by the
savings bank to | ||||||
| 9 | perform an independent audit; provided that the attorney or
| ||||||
| 10 | certified public
accountant shall not permit the | ||||||
| 11 | confidential supervisory information to be
further | ||||||
| 12 | disseminated.
| ||||||
| 13 | (3) to any person who seeks to acquire a controlling | ||||||
| 14 | interest in, or who
seeks to merge with,
the savings bank; | ||||||
| 15 | provided that the person shall agree to be bound to respect
| ||||||
| 16 | the confidentiality
of the confidential supervisory | ||||||
| 17 | information and to not further disseminate the
information
| ||||||
| 18 | other than to attorneys, certified public accountants, | ||||||
| 19 | officers, agents, or
employees of that
person who likewise | ||||||
| 20 | shall agree to be bound to respect the confidentiality of
| ||||||
| 21 | the confidential
supervisory information and to not | ||||||
| 22 | further disseminate the information.
| ||||||
| 23 | (4) to the savings bank's insurance company, if the | ||||||
| 24 | supervisory
information contains
information that is | ||||||
| 25 | otherwise unavailable and is strictly necessary to
| ||||||
| 26 | obtaining insurance coverage or
pursuing an insurance | ||||||
| |||||||
| |||||||
| 1 | claim for or on behalf of the savings bank; provided
that, | ||||||
| 2 | when possible, the
savings bank shall disclose only | ||||||
| 3 | information that is relevant to obtaining
insurance | ||||||
| 4 | coverage or
pursuing an insurance claim, while maintaining | ||||||
| 5 | the confidentiality of financial
information
pertaining to | ||||||
| 6 | customers; and provided further that, when appropriate, | ||||||
| 7 | the
savings bank may delete
identifying data relating to
| ||||||
| 8 | any person.
| ||||||
| 9 | (5) to a Federal Home Loan Bank of which it is a | ||||||
| 10 | member. | ||||||
| 11 | (6) to any attorney, accountant, consultant, or other | ||||||
| 12 | professional as needed to comply with an enforcement action | ||||||
| 13 | issued by the Secretary. | ||||||
| 14 | The disclosure of confidential supervisory information by | ||||||
| 15 | a savings bank
pursuant to this
subsection (b) and the | ||||||
| 16 | disclosure of information to the Secretary or other
regulatory | ||||||
| 17 | agency in
connection with any examination, visitation, or | ||||||
| 18 | investigation shall not
constitute a waiver of any
legal | ||||||
| 19 | privilege otherwise available to the savings bank with respect | ||||||
| 20 | to the
information.
| ||||||
| 21 | (c)(1) Notwithstanding any other provision of this Act or | ||||||
| 22 | any other law,
confidential
supervisory information shall be | ||||||
| 23 | the property of the Secretary and shall be
privileged from
| ||||||
| 24 | disclosure to any person except as provided in this Section. No | ||||||
| 25 | person in
possession of
confidential supervisory information | ||||||
| 26 | may disclose that information for any
reason or under any
| ||||||
| |||||||
| |||||||
| 1 | circumstances not specified in this Section without the prior | ||||||
| 2 | authorization of
the Secretary.
Any person upon whom a demand | ||||||
| 3 | for production of confidential supervisory
information is | ||||||
| 4 | made,
whether by subpoena, order, or other judicial or | ||||||
| 5 | administrative process, must
withhold
production of the | ||||||
| 6 | confidential supervisory information and must notify the | ||||||
| 7 | Secretary
of the
demand, at which time the Secretary is | ||||||
| 8 | authorized to intervene for the
purpose of
enforcing the | ||||||
| 9 | limitations of this Section or seeking the withdrawal or
| ||||||
| 10 | termination of the attempt to
compel production of the | ||||||
| 11 | confidential supervisory information.
| ||||||
| 12 | (2) Any request for discovery or disclosure of confidential | ||||||
| 13 | supervisory
information, whether
by subpoena, order, or other | ||||||
| 14 | judicial or administrative process, shall be made
to the | ||||||
| 15 | Secretary, and the Secretary shall determine within 15 days | ||||||
| 16 | whether to
disclose the
information pursuant to procedures and | ||||||
| 17 | standards that the Secretary shall
establish by rule. If
the | ||||||
| 18 | Secretary determines that such information will not be | ||||||
| 19 | disclosed, the Secretary's
decision shall be subject to | ||||||
| 20 | judicial review under the provisions of the
Administrative | ||||||
| 21 | Review
Law, and venue shall be in either Sangamon County or | ||||||
| 22 | Cook County.
| ||||||
| 23 | (3) Any court order that compels disclosure of confidential | ||||||
| 24 | supervisory
information may be
immediately appealed by the | ||||||
| 25 | Secretary, and the order shall be automatically
stayed pending | ||||||
| 26 | the
outcome of the appeal.
| ||||||
| |||||||
| |||||||
| 1 | (d) If any officer, agent, attorney, or employee of a | ||||||
| 2 | savings bank knowingly
and willfully
furnishes confidential | ||||||
| 3 | supervisory information in violation of this Section,
the | ||||||
| 4 | Secretary
may impose a civil monetary penalty up to $1,000 for | ||||||
| 5 | the violation
against
the officer, agent, attorney, or | ||||||
| 6 | employee.
| ||||||
| 7 | (e) Subject to the limits of this Section, the Secretary
| ||||||
| 8 | also may promulgate regulations to set procedures and
standards | ||||||
| 9 | for
disclosure of
the
following items:
| ||||||
| 10 | (1) All fixed orders and opinions made in cases of
| ||||||
| 11 | appeals of the Secretary's actions.
| ||||||
| 12 | (2) Statements of policy and interpretations adopted | ||||||
| 13 | by
the Secretary's office, but not otherwise made public.
| ||||||
| 14 | (3) Nonconfidential portions of application files,
| ||||||
| 15 | including applications for new charters. The Secretary
| ||||||
| 16 | shall specify by rule as to what part of the files are
| ||||||
| 17 | confidential.
| ||||||
| 18 | (4) Quarterly reports of income, deposits, and | ||||||
| 19 | financial
condition.
| ||||||
| 20 | (Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17; | ||||||
| 21 | 100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)
| ||||||
| 22 | (205 ILCS 205/10090) | ||||||
| 23 | Sec. 10090. Dividends; dissolution. From time to time | ||||||
| 24 | during a receivership other than a receivership conducted by | ||||||
| 25 | the Federal Deposit Insurance Corporation, the Secretary shall | ||||||
| |||||||
| |||||||
| 1 | make and pay from moneys of the savings bank a ratable dividend | ||||||
| 2 | on all claims as may be proved to his or her satisfaction or | ||||||
| 3 | adjudicated by the court. Claims so proven or adjudicated shall | ||||||
| 4 | bear interest at the rate of 3% per annum from the date of the | ||||||
| 5 | appointment of the receiver to the date of payment, but all | ||||||
| 6 | dividends on a claim shall be applied first to principal. In | ||||||
| 7 | computing the amount of any dividend to be paid, if the | ||||||
| 8 | Secretary deems it desirable in the interests of economy of | ||||||
| 9 | administration and to the interest of the savings bank and its | ||||||
| 10 | creditors, he or she may pay up to the amount of $10 of each | ||||||
| 11 | claim or unpaid portion thereof in full. As the proceeds of the | ||||||
| 12 | assets of the savings bank are collected in the course of | ||||||
| 13 | liquidation, the Secretary shall make and pay further dividends | ||||||
| 14 | on all claims previously proven or adjudicated. After one year | ||||||
| 15 | from the entry of a judgment of dissolution, all unclaimed | ||||||
| 16 | dividends shall be remitted to the State Treasurer in | ||||||
| 17 | accordance with the Revised Uniform Disposition of Unclaimed | ||||||
| 18 | Property Act, as now or hereafter amended, together with a list | ||||||
| 19 | of all unpaid claimants, their last known addresses and the | ||||||
| 20 | amounts unpaid.
| ||||||
| 21 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 22 | Section 60. The Illinois Credit Union Act is amended by | ||||||
| 23 | changing Sections 10 and 62 as follows:
| ||||||
| 24 | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 10. Credit union records; member financial records.
| ||||||
| 2 | (1) A credit union shall establish and maintain books, | ||||||
| 3 | records, accounting
systems and procedures which accurately | ||||||
| 4 | reflect its operations and which
enable the Department to | ||||||
| 5 | readily ascertain the true financial condition
of the credit | ||||||
| 6 | union and whether it is complying with this Act.
| ||||||
| 7 | (2) A photostatic or photographic reproduction of any | ||||||
| 8 | credit union records
shall be admissible as evidence of | ||||||
| 9 | transactions with the credit union.
| ||||||
| 10 | (3)(a) For the purpose of this Section, the term "financial | ||||||
| 11 | records"
means any original, any copy, or any summary of (1) a | ||||||
| 12 | document granting
signature authority over an account, (2) a | ||||||
| 13 | statement, ledger card or other
record on any account which | ||||||
| 14 | shows each transaction in or with respect to
that account, (3) | ||||||
| 15 | a check, draft or money order drawn on a financial
institution | ||||||
| 16 | or other entity or issued and payable by or through a financial
| ||||||
| 17 | institution or other entity, or (4) any other item containing | ||||||
| 18 | information
pertaining to any relationship established in the | ||||||
| 19 | ordinary course of
business between a credit union and its | ||||||
| 20 | member, including financial
statements or other financial | ||||||
| 21 | information provided by the member.
| ||||||
| 22 | (b) This Section does not prohibit:
| ||||||
| 23 | (1) The preparation, examination, handling or | ||||||
| 24 | maintenance of any
financial records by any officer, | ||||||
| 25 | employee or agent of a credit union
having custody of such | ||||||
| 26 | records, or the examination of such records by a
certified | ||||||
| |||||||
| |||||||
| 1 | public accountant engaged by the credit union to perform an
| ||||||
| 2 | independent audit.
| ||||||
| 3 | (2) The examination of any financial records by or the | ||||||
| 4 | furnishing of
financial records by a credit union to any | ||||||
| 5 | officer, employee or agent of
the Department, the National | ||||||
| 6 | Credit Union Administration, Federal Reserve
board or any | ||||||
| 7 | insurer of share accounts for use solely in the exercise of
| ||||||
| 8 | his duties as an officer, employee or agent.
| ||||||
| 9 | (3) The publication of data furnished from financial | ||||||
| 10 | records relating
to members where the data cannot be | ||||||
| 11 | identified to any particular customer
of account.
| ||||||
| 12 | (4) The making of reports or returns required under | ||||||
| 13 | Chapter 61 of the
Internal Revenue Code of 1954.
| ||||||
| 14 | (5) Furnishing information concerning the dishonor of | ||||||
| 15 | any negotiable
instrument permitted to be disclosed under | ||||||
| 16 | the Uniform Commercial
Code.
| ||||||
| 17 | (6) The exchange in the regular course of business
of | ||||||
| 18 | (i) credit information
between a credit union and other | ||||||
| 19 | credit unions or financial institutions
or commercial | ||||||
| 20 | enterprises, directly or through a consumer reporting | ||||||
| 21 | agency
or (ii) financial records or information derived | ||||||
| 22 | from financial records
between a credit union and other | ||||||
| 23 | credit unions or financial institutions or
commercial | ||||||
| 24 | enterprises for
the purpose of conducting due diligence | ||||||
| 25 | pursuant to a merger or a purchase or
sale of assets or | ||||||
| 26 | liabilities of the credit union.
| ||||||
| |||||||
| |||||||
| 1 | (7) The furnishing of information to the appropriate | ||||||
| 2 | law enforcement
authorities where the credit union | ||||||
| 3 | reasonably believes it has been the victim
of a crime.
| ||||||
| 4 | (8) The furnishing of information pursuant to the | ||||||
| 5 | Revised Uniform Disposition of Unclaimed Property Act.
| ||||||
| 6 | (9) The furnishing of information pursuant to the | ||||||
| 7 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
| 8 | Generation-Skipping Transfer Tax Act.
| ||||||
| 9 | (10) The furnishing of information pursuant to the | ||||||
| 10 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
| 11 | Title 31, United States Code,
Section 1051 et sequentia.
| ||||||
| 12 | (11) The furnishing of information pursuant to any | ||||||
| 13 | other statute which
by its terms or by regulations | ||||||
| 14 | promulgated thereunder requires the disclosure
of | ||||||
| 15 | financial records other than by subpoena, summons, warrant | ||||||
| 16 | or court order.
| ||||||
| 17 | (12) The furnishing of information in accordance with | ||||||
| 18 | the federal
Personal Responsibility and Work Opportunity | ||||||
| 19 | Reconciliation Act of 1996.
Any credit union governed by | ||||||
| 20 | this Act shall enter into an agreement for data
exchanges | ||||||
| 21 | with a State agency provided the State agency
pays to the | ||||||
| 22 | credit union a reasonable fee not to exceed its
actual cost | ||||||
| 23 | incurred. A credit union
providing
information in | ||||||
| 24 | accordance with this item shall not be liable to any | ||||||
| 25 | account
holder or other person for any disclosure of | ||||||
| 26 | information to a State agency, for
encumbering or | ||||||
| |||||||
| |||||||
| 1 | surrendering any assets held by the credit union in | ||||||
| 2 | response to
a lien
or order to withhold and deliver issued | ||||||
| 3 | by a State agency, or for any other
action taken pursuant | ||||||
| 4 | to this item, including individual or mechanical errors,
| ||||||
| 5 | provided the action does not constitute gross negligence or | ||||||
| 6 | willful misconduct.
A credit union shall have no obligation | ||||||
| 7 | to hold, encumber, or surrender
assets until
it has been | ||||||
| 8 | served with a subpoena, summons, warrant, court or | ||||||
| 9 | administrative
order, lien, or levy.
| ||||||
| 10 | (13) The furnishing of information to law enforcement | ||||||
| 11 | authorities, the
Illinois Department on
Aging and its | ||||||
| 12 | regional administrative and provider agencies, the | ||||||
| 13 | Department of
Human Services Office
of Inspector General, | ||||||
| 14 | or public guardians: (i) upon subpoena by the investigatory | ||||||
| 15 | entity or the guardian, or (ii) if there is suspicion by | ||||||
| 16 | the credit union that a
member who is an elderly person or | ||||||
| 17 | person with a disability has been or may become the victim | ||||||
| 18 | of financial exploitation.
For the purposes of this
item | ||||||
| 19 | (13), the term: (i) "elderly person" means a person who is | ||||||
| 20 | 60 or more
years of age, (ii) "person with a disability" | ||||||
| 21 | means a person who has or reasonably appears to the credit | ||||||
| 22 | union to
have a physical or mental
disability that impairs | ||||||
| 23 | his or her ability to seek or obtain protection from or
| ||||||
| 24 | prevent financial
exploitation, and (iii) "financial | ||||||
| 25 | exploitation" means tortious or illegal use
of the assets | ||||||
| 26 | or resources of
an elderly person or person with a | ||||||
| |||||||
| |||||||
| 1 | disability, and includes, without limitation,
| ||||||
| 2 | misappropriation of the elderly or
disabled person's | ||||||
| 3 | assets or resources by undue influence, breach of fiduciary
| ||||||
| 4 | relationship, intimidation,
fraud, deception, extortion, | ||||||
| 5 | or the use of assets or resources in any manner
contrary to | ||||||
| 6 | law. A credit
union or person furnishing information | ||||||
| 7 | pursuant to this item (13) shall be
entitled to the same | ||||||
| 8 | rights and
protections as a person furnishing information | ||||||
| 9 | under the Adult Protective Services Act and the Illinois
| ||||||
| 10 | Domestic Violence Act of 1986.
| ||||||
| 11 | (14) The disclosure of financial records or | ||||||
| 12 | information as necessary
to
effect, administer, or enforce | ||||||
| 13 | a transaction requested or authorized by the
member, or in | ||||||
| 14 | connection with:
| ||||||
| 15 | (A) servicing or processing a financial product or | ||||||
| 16 | service requested
or
authorized by the member;
| ||||||
| 17 | (B) maintaining or servicing a member's account | ||||||
| 18 | with the credit union;
or
| ||||||
| 19 | (C) a proposed or actual securitization or | ||||||
| 20 | secondary market sale
(including sales of servicing | ||||||
| 21 | rights) related to a
transaction of a member.
| ||||||
| 22 | Nothing in this item (14), however, authorizes the sale | ||||||
| 23 | of the financial
records or information of a member without | ||||||
| 24 | the consent of the member.
| ||||||
| 25 | (15) The disclosure of financial records or | ||||||
| 26 | information as necessary to
protect against or prevent | ||||||
| |||||||
| |||||||
| 1 | actual or potential fraud, unauthorized
transactions, | ||||||
| 2 | claims, or other liability.
| ||||||
| 3 | (16)(a) The disclosure of financial records or | ||||||
| 4 | information
related to a private label credit program | ||||||
| 5 | between a financial
institution and a private label party | ||||||
| 6 | in connection
with that private label credit program. Such | ||||||
| 7 | information
is limited to outstanding balance, available | ||||||
| 8 | credit, payment and
performance and account history, | ||||||
| 9 | product references, purchase
information,
and information | ||||||
| 10 | related to the identity of the
customer.
| ||||||
| 11 | (b)(1) For purposes of this item paragraph (16) of | ||||||
| 12 | subsection
(b) of Section 10, a "private label credit | ||||||
| 13 | program" means a credit
program involving a financial | ||||||
| 14 | institution and a private label party
that is used by a | ||||||
| 15 | customer of the financial institution and the
private label | ||||||
| 16 | party primarily for payment for goods or services
sold, | ||||||
| 17 | manufactured, or distributed by a private label party.
| ||||||
| 18 | (2) For purposes of this item paragraph (16) of | ||||||
| 19 | subsection (b)
of Section 10, a "private label party" | ||||||
| 20 | means, with respect to a
private label credit program, any | ||||||
| 21 | of the following: a
retailer, a merchant, a manufacturer, a | ||||||
| 22 | trade group,
or any such person's affiliate, subsidiary, | ||||||
| 23 | member,
agent, or service provider.
| ||||||
| 24 | (17)(a) The furnishing of financial records of a member | ||||||
| 25 | to the Department to aid the Department's initial | ||||||
| 26 | determination or subsequent re-determination of the | ||||||
| |||||||
| |||||||
| 1 | member's eligibility for Medicaid and Medicaid long-term | ||||||
| 2 | care benefits for long-term care services, provided that | ||||||
| 3 | the credit union receives the written consent and | ||||||
| 4 | authorization of the member, which shall: | ||||||
| 5 | (1) have the member's signature notarized; | ||||||
| 6 | (2) be signed by at least one witness who certifies | ||||||
| 7 | that he or she believes the member to be of sound mind | ||||||
| 8 | and memory; | ||||||
| 9 | (3) be tendered to the credit union at the earliest | ||||||
| 10 | practicable time following its execution, | ||||||
| 11 | certification, and notarization; | ||||||
| 12 | (4) specifically limit the disclosure of the | ||||||
| 13 | member's financial records to the Department; and | ||||||
| 14 | (5) be in substantially the following form:
| ||||||
| 15 | CUSTOMER CONSENT AND AUTHORIZATION | ||||||
| 16 | FOR RELEASE OF FINANCIAL RECORDS | ||||||
| 17 | I, ......................................., hereby authorize | ||||||
| 18 | (Name of Customer)
| ||||||
| 19 | ............................................................. | ||||||
| 20 | (Name of Financial Institution)
| ||||||
| 21 | ............................................................. | ||||||
| 22 | (Address of Financial Institution)
| ||||||
| |||||||
| |||||||
| 1 | to disclose the following financial records:
| ||||||
| 2 | any and all information concerning my deposit, savings, money | ||||||
| 3 | market, certificate of deposit, individual retirement, | ||||||
| 4 | retirement plan, 401(k) plan, incentive plan, employee benefit | ||||||
| 5 | plan, mutual fund and loan accounts (including, but not limited | ||||||
| 6 | to, any indebtedness or obligation for which I am a | ||||||
| 7 | co-borrower, co-obligor, guarantor, or surety), and any and all | ||||||
| 8 | other accounts in which I have an interest and any other | ||||||
| 9 | information regarding me in the possession of the Financial | ||||||
| 10 | Institution,
| ||||||
| 11 | to the Illinois Department of Human Services or the Illinois | ||||||
| 12 | Department of Healthcare and Family Services, or both ("the | ||||||
| 13 | Department"), for the following purpose(s):
| ||||||
| 14 | to aid in the initial determination or re-determination by the | ||||||
| 15 | State of Illinois of my eligibility for Medicaid long-term care | ||||||
| 16 | benefits, pursuant to applicable law.
| ||||||
| 17 | I understand that this Consent and Authorization may be revoked | ||||||
| 18 | by me in writing at any time before my financial records, as | ||||||
| 19 | described above, are disclosed, and that this Consent and | ||||||
| 20 | Authorization is valid until the Financial Institution | ||||||
| 21 | receives my written revocation. This Consent and Authorization | ||||||
| |||||||
| |||||||
| 1 | shall constitute valid authorization for the Department | ||||||
| 2 | identified above to inspect all such financial records set | ||||||
| 3 | forth above, and to request and receive copies of such | ||||||
| 4 | financial records from the Financial Institution (subject to | ||||||
| 5 | such records search and reproduction reimbursement policies as | ||||||
| 6 | the Financial Institution may have in place). An executed copy | ||||||
| 7 | of this Consent and Authorization shall be sufficient and as | ||||||
| 8 | good as the original and permission is hereby granted to honor | ||||||
| 9 | a photostatic or electronic copy of this Consent and | ||||||
| 10 | Authorization. Disclosure is strictly limited to the | ||||||
| 11 | Department identified above and no other person or entity shall | ||||||
| 12 | receive my financial records pursuant to this Consent and | ||||||
| 13 | Authorization. By signing this form, I agree to indemnify and | ||||||
| 14 | hold the Financial Institution harmless from any and all | ||||||
| 15 | claims, demands, and losses, including reasonable attorneys | ||||||
| 16 | fees and expenses, arising from or incurred in its reliance on | ||||||
| 17 | this Consent and Authorization. As used herein, "Customer" | ||||||
| 18 | shall mean "Member" if the Financial Institution is a credit | ||||||
| 19 | union.
| ||||||
| 20 | ....................... ...................... | ||||||
| 21 | (Date) (Signature of Customer)
| ||||||
| 22 | ...................... | ||||||
| 23 | ...................... | ||||||
| 24 | (Address of Customer)
| ||||||
| |||||||
| |||||||
| 1 | ...................... | ||||||
| 2 | (Customer's birth date) | ||||||
| 3 | (month/day/year)
| ||||||
| 4 | The undersigned witness certifies that ................., | ||||||
| 5 | known to me to be the same person whose name is subscribed as | ||||||
| 6 | the customer to the foregoing Consent and Authorization, | ||||||
| 7 | appeared before me and the notary public and acknowledged | ||||||
| 8 | signing and delivering the instrument as his or her free and | ||||||
| 9 | voluntary act for the uses and purposes therein set forth. I | ||||||
| 10 | believe him or her to be of sound mind and memory. The | ||||||
| 11 | undersigned witness also certifies that the witness is not an | ||||||
| 12 | owner, operator, or relative of an owner or operator of a | ||||||
| 13 | long-term care facility in which the customer is a patient or | ||||||
| 14 | resident.
| ||||||
| 15 | Dated: ................. ...................... | ||||||
| 16 | (Signature of Witness)
| ||||||
| 17 | ...................... | ||||||
| 18 | (Print Name of Witness)
| ||||||
| 19 | ...................... | ||||||
| 20 | ...................... | ||||||
| 21 | (Address of Witness)
| ||||||
| |||||||
| |||||||
| 1 | State of Illinois) | ||||||
| 2 | ) ss. | ||||||
| 3 | County of .......)
| ||||||
| 4 | The undersigned, a notary public in and for the above county | ||||||
| 5 | and state, certifies that .........., known to me to be the | ||||||
| 6 | same person whose name is subscribed as the customer to the | ||||||
| 7 | foregoing Consent and Authorization, appeared before me | ||||||
| 8 | together with the witness, .........., in person and | ||||||
| 9 | acknowledged signing and delivering the instrument as the free | ||||||
| 10 | and voluntary act of the customer for the uses and purposes | ||||||
| 11 | therein set forth.
| ||||||
| 12 | Dated:....................................................... | ||||||
| 13 | Notary Public:............................................... | ||||||
| 14 | My commission expires:.......................................
| ||||||
| 15 | (b) In no event shall the credit union distribute the | ||||||
| 16 | member's financial records to the long-term care facility | ||||||
| 17 | from which the member seeks initial or continuing residency | ||||||
| 18 | or long-term care services. | ||||||
| 19 | (c) A credit union providing financial records of a | ||||||
| 20 | member in good faith relying on a consent and authorization | ||||||
| 21 | executed and tendered in accordance with this item | ||||||
| 22 | subparagraph (17) shall not be liable to the member or any | ||||||
| |||||||
| |||||||
| 1 | other person in relation to the credit union's disclosure | ||||||
| 2 | of the member's financial records to the Department. The | ||||||
| 3 | member signing the consent and authorization shall | ||||||
| 4 | indemnify and hold the credit union harmless that relies in | ||||||
| 5 | good faith upon the consent and authorization and incurs a | ||||||
| 6 | loss because of such reliance. The credit union recovering | ||||||
| 7 | under this indemnification provision shall also be | ||||||
| 8 | entitled to reasonable attorney's fees and the expenses of | ||||||
| 9 | recovery. | ||||||
| 10 | (d) A credit union shall be reimbursed by the member | ||||||
| 11 | for all costs reasonably necessary and directly incurred in | ||||||
| 12 | searching for, reproducing, and disclosing a member's | ||||||
| 13 | financial records required or requested to be produced | ||||||
| 14 | pursuant to any consent and authorization executed under | ||||||
| 15 | this item subparagraph (17). The requested financial | ||||||
| 16 | records shall be delivered to the Department within 10 days | ||||||
| 17 | after receiving a properly executed consent and | ||||||
| 18 | authorization or at the earliest practicable time | ||||||
| 19 | thereafter if the requested records cannot be delivered | ||||||
| 20 | within 10 days, but delivery may be delayed until the final | ||||||
| 21 | reimbursement of all costs is received by the credit union. | ||||||
| 22 | The credit union may honor a photostatic or electronic copy | ||||||
| 23 | of a properly executed consent and authorization. | ||||||
| 24 | (e) Nothing in this item subparagraph (17) shall | ||||||
| 25 | impair, abridge, or abrogate the right of a member to: | ||||||
| 26 | (1) directly disclose his or her financial records | ||||||
| |||||||
| |||||||
| 1 | to the Department or any other person; or | ||||||
| 2 | (2) authorize his or her attorney or duly appointed | ||||||
| 3 | agent to request and obtain the member's financial | ||||||
| 4 | records and disclose those financial records to the | ||||||
| 5 | Department. | ||||||
| 6 | (f) For purposes of this item subparagraph (17), | ||||||
| 7 | "Department" means the Department of Human Services and the | ||||||
| 8 | Department of Healthcare and Family Services or any | ||||||
| 9 | successor administrative agency of either agency. | ||||||
| 10 | (18) (17) The furnishing of the financial records of a | ||||||
| 11 | member to an appropriate law enforcement authority, | ||||||
| 12 | without prior notice to or consent of the member, upon | ||||||
| 13 | written request of the law enforcement authority, when | ||||||
| 14 | reasonable suspicion of an imminent threat to the personal | ||||||
| 15 | security and safety of the member exists that necessitates | ||||||
| 16 | an expedited release of the member's financial records, as | ||||||
| 17 | determined by the law enforcement authority. The law | ||||||
| 18 | enforcement authority shall include a brief explanation of | ||||||
| 19 | the imminent threat to the member in its written request to | ||||||
| 20 | the credit union. The written request shall reflect that it | ||||||
| 21 | has been authorized by a supervisory or managerial official | ||||||
| 22 | of the law enforcement authority. The decision to furnish | ||||||
| 23 | the financial records of a member to a law enforcement | ||||||
| 24 | authority shall be made by a supervisory or managerial | ||||||
| 25 | official of the credit union. A credit union providing | ||||||
| 26 | information in accordance with this item (18) (17) shall | ||||||
| |||||||
| |||||||
| 1 | not be liable to the member or any other person for the | ||||||
| 2 | disclosure of the information to the law enforcement | ||||||
| 3 | authority.
| ||||||
| 4 | (c) Except as otherwise provided by this Act, a credit | ||||||
| 5 | union may not
disclose to any person, except to the member
or | ||||||
| 6 | his duly authorized agent, any financial records relating to | ||||||
| 7 | that member
of the credit union unless:
| ||||||
| 8 | (1) the member has authorized disclosure to the person;
| ||||||
| 9 | (2) the financial records are disclosed in response to | ||||||
| 10 | a lawful
subpoena,
summons, warrant, citation to discover | ||||||
| 11 | assets, or court order that meets the requirements of | ||||||
| 12 | subparagraph (3)(d)
(d) of this Section; or
| ||||||
| 13 | (3) the credit union is attempting to collect an | ||||||
| 14 | obligation owed to
the credit union and the credit union | ||||||
| 15 | complies with the provisions of
Section 2I of the Consumer | ||||||
| 16 | Fraud and Deceptive Business Practices Act.
| ||||||
| 17 | (d) A credit union shall disclose financial records under | ||||||
| 18 | item (3)(c)(2) subparagraph
(c)(2) of this Section pursuant to | ||||||
| 19 | a lawful subpoena, summons, warrant, citation to discover | ||||||
| 20 | assets, or
court order only after the credit union mails a copy | ||||||
| 21 | of the subpoena, summons,
warrant, citation to discover assets, | ||||||
| 22 | or court order to the person establishing the relationship with
| ||||||
| 23 | the credit union, if living, and otherwise his personal | ||||||
| 24 | representative,
if known, at his last known address by first | ||||||
| 25 | class mail, postage prepaid
unless the credit union is | ||||||
| 26 | specifically prohibited from notifying the person
by order of | ||||||
| |||||||
| |||||||
| 1 | court or by applicable State or federal law. In the case
of a | ||||||
| 2 | grand jury subpoena, a credit union shall not mail a copy of a | ||||||
| 3 | subpoena
to any person pursuant to this subsection if the | ||||||
| 4 | subpoena was issued by a grand
jury under the Statewide Grand | ||||||
| 5 | Jury Act or notifying the
person would constitute a violation | ||||||
| 6 | of the federal Right to Financial
Privacy Act of 1978.
| ||||||
| 7 | (e)(1) Any officer or employee of a credit union who | ||||||
| 8 | knowingly and willfully
wilfully furnishes financial records | ||||||
| 9 | in violation of this Section is guilty of
a business offense | ||||||
| 10 | and upon conviction thereof shall be fined not more than
| ||||||
| 11 | $1,000.
| ||||||
| 12 | (2) Any person who knowingly and willfully wilfully induces | ||||||
| 13 | or attempts to induce
any officer or employee of a credit union | ||||||
| 14 | to disclose financial records
in violation of this Section is | ||||||
| 15 | guilty of a business offense and upon
conviction thereof shall | ||||||
| 16 | be fined not more than $1,000.
| ||||||
| 17 | (f) A credit union shall be reimbursed for costs which are | ||||||
| 18 | reasonably
necessary and which have been directly incurred in | ||||||
| 19 | searching for,
reproducing or transporting books, papers, | ||||||
| 20 | records or other data of a
member required or requested to be | ||||||
| 21 | produced pursuant to a lawful subpoena,
summons, warrant, | ||||||
| 22 | citation to discover assets, or court order. The Secretary and | ||||||
| 23 | the Director may determine, by rule, the
rates and
conditions | ||||||
| 24 | under which payment shall be made. Delivery of requested | ||||||
| 25 | documents
may be delayed until final reimbursement of all costs | ||||||
| 26 | is received.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18; | ||||||
| 2 | 100-664, eff. 1-1-19; 100-778, eff. 8-10-18; revised | ||||||
| 3 | 10-18-18.)
| ||||||
| 4 | (205 ILCS 305/62) (from Ch. 17, par. 4463)
| ||||||
| 5 | Sec. 62. Liquidation.
| ||||||
| 6 | (1) A credit union may elect to dissolve voluntarily
and | ||||||
| 7 | liquidate its affairs in the manner prescribed in this Section.
| ||||||
| 8 | (2) The board of directors shall adopt a resolution | ||||||
| 9 | recommending the credit
union be dissolved voluntarily, and | ||||||
| 10 | directing that the question of liquidating
be submitted to the | ||||||
| 11 | members.
| ||||||
| 12 | (3) Within 10 days after the board of directors decides to | ||||||
| 13 | submit the
question of liquidation to the members, the chairman | ||||||
| 14 | or president shall
notify the Secretary thereof, in writing, | ||||||
| 15 | setting forth the reasons for the
proposed action. Within 10 | ||||||
| 16 | days after the members act on the question of
liquidation, the | ||||||
| 17 | chairman or president shall notify the Secretary, in writing,
| ||||||
| 18 | as to whether or not the members approved the proposed | ||||||
| 19 | liquidation. The Secretary
then must determine whether this | ||||||
| 20 | Section has been complied with
and if his decision is | ||||||
| 21 | favorable, he shall prepare a certificate to the
effect that | ||||||
| 22 | this Section has been complied with, a copy of which will be
| ||||||
| 23 | retained by the Department and the other copy forwarded to the | ||||||
| 24 | credit union.
The certificate must be filed with the recorder | ||||||
| 25 | or if there is
no recorder, in the office of the county clerk | ||||||
| |||||||
| |||||||
| 1 | of the county or counties in
which the credit union is | ||||||
| 2 | operating, whereupon the credit union must cease
operations | ||||||
| 3 | except for the purpose of its liquidation.
| ||||||
| 4 | (4) As soon as the board of directors passes a resolution | ||||||
| 5 | to submit the
question of liquidation to the members, payment | ||||||
| 6 | on shares, withdrawal of
shares, making any transfer of shares | ||||||
| 7 | to loans and interest, making investments
of any kind and | ||||||
| 8 | granting loans shall be suspended pending action by members.
On | ||||||
| 9 | approval by the members of such proposal, all such operations | ||||||
| 10 | shall be
permanently discontinued. The necessary expenses of | ||||||
| 11 | operating shall, however,
continue to be paid on authorization | ||||||
| 12 | of the board of directors or the liquidating agent
during the | ||||||
| 13 | period of liquidation.
| ||||||
| 14 | (5) For a credit union to enter voluntary liquidation, it | ||||||
| 15 | must be approved
by affirmative vote of the members owning a | ||||||
| 16 | majority of the shares entitled
to vote, in person or by proxy, | ||||||
| 17 | at a regular or special meeting of the members.
Notice, in | ||||||
| 18 | writing, shall be given to each member, by first class mail,
at | ||||||
| 19 | least 10 days prior to such meeting. If liquidation is | ||||||
| 20 | approved, the board of directors
shall appoint a liquidating | ||||||
| 21 | agent for the purpose of
conserving and collecting the assets, | ||||||
| 22 | closing the affairs of the credit
union and distributing the | ||||||
| 23 | assets as required by this Act.
| ||||||
| 24 | (6) A liquidating credit union shall continue in existence | ||||||
| 25 | for the purpose
of discharging its debts, collecting and | ||||||
| 26 | distributing its assets, and doing
all acts required in order | ||||||
| |||||||
| |||||||
| 1 | to terminate its operations and may sue and be
sued for the | ||||||
| 2 | purpose of enforcing such debts and obligations until its | ||||||
| 3 | affairs
are fully adjusted.
| ||||||
| 4 | (7) Subject to such rules and regulations as the Secretary | ||||||
| 5 | may promulgate,
the liquidating agent shall use the assets of | ||||||
| 6 | the credit union to pay; first,
expenses incidental to | ||||||
| 7 | liquidating including any surety bond that may be
required; | ||||||
| 8 | then, liabilities of the credit union; then special classes of
| ||||||
| 9 | shares. The remaining assets shall then be distributed to the | ||||||
| 10 | members
proportionately to the dollar value of the shares held | ||||||
| 11 | by each member in
relation to the total dollar value of all | ||||||
| 12 | shares outstanding as of the date the
dissolution was voted.
| ||||||
| 13 | (8) As soon as the liquidating agent determines that all | ||||||
| 14 | assets as to
which there is a reasonable expectancy of sale or | ||||||
| 15 | transfer have been liquidated
and distributed as set forth in | ||||||
| 16 | this Section, he shall execute a certificate
of dissolution on | ||||||
| 17 | a form prescribed by the Department and file the same,
together | ||||||
| 18 | with all pertinent books and records of the liquidating credit
| ||||||
| 19 | union with the Department, whereupon such credit union shall be | ||||||
| 20 | dissolved.
The liquidating agent must, within 3 years after | ||||||
| 21 | issuance of a certificate
by the Secretary referred to in | ||||||
| 22 | Subsection (3) of this Section, discharge
the debts of the | ||||||
| 23 | credit union, collect and distribute its assets and do
all | ||||||
| 24 | other acts required to wind up its business.
| ||||||
| 25 | (9) If the Secretary determines that the liquidating agent | ||||||
| 26 | has failed to
make reasonable progress in the liquidating of | ||||||
| |||||||
| |||||||
| 1 | the credit union's affairs
and distribution of its assets or | ||||||
| 2 | has violated this Act, the Secretary may
take possession and | ||||||
| 3 | control of the credit union and remove the liquidating agent | ||||||
| 4 | and appoint a liquidating agent to complete the liquidation | ||||||
| 5 | under
his direction and control. The Secretary shall fill any | ||||||
| 6 | vacancy caused by
the resignation, death, illness, removal, | ||||||
| 7 | desertion or incapacity to function
of the liquidating agent.
| ||||||
| 8 | (10) Any funds representing unclaimed dividends and shares | ||||||
| 9 | in liquidation
and remaining in the hands of the board of | ||||||
| 10 | directors or the liquidating agent at the end of the | ||||||
| 11 | liquidation must be deposited by them, together with
all books | ||||||
| 12 | and papers of the credit union, with the State Treasurer in
| ||||||
| 13 | compliance with the Revised Uniform Disposition of Unclaimed | ||||||
| 14 | Property Act, approved August 17, 1961, as amended.
| ||||||
| 15 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 16 | Section 65. The Currency Exchange Act is amended by | ||||||
| 17 | changing Sections 15.1b and 19.3 as follows:
| ||||||
| 18 | (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
| ||||||
| 19 | Sec. 15.1b. Liquidation; distribution; priority. The | ||||||
| 20 | General Assembly
finds and declares that community currency
| ||||||
| 21 | exchanges provide important and vital services to Illinois | ||||||
| 22 | citizens. The
General Assembly also finds that in providing | ||||||
| 23 | such services, community currency
exchanges transact extensive | ||||||
| 24 | business involving check cashing and the writing
of money | ||||||
| |||||||
| |||||||
| 1 | orders in communities in which banking services are generally
| ||||||
| 2 | unavailable. It is therefore declared to be the policy of this | ||||||
| 3 | State that customers who
receive these services must be | ||||||
| 4 | protected from insolvencies of currency
exchanges and | ||||||
| 5 | interruptions of services. To carry out this policy and to | ||||||
| 6 | insure that
customers of community currency exchanges are | ||||||
| 7 | protected in the event it
is determined that a community | ||||||
| 8 | currency exchange in receivership should
be liquidated in | ||||||
| 9 | accordance with Section 15.1a of this Act, the Secretary
shall | ||||||
| 10 | make a distribution of moneys collected by the receiver in the | ||||||
| 11 | following
order of priority: First, allowed claims for the | ||||||
| 12 | actual necessary expenses
of the receivership of the community | ||||||
| 13 | currency exchange being liquidated,
including (a) reasonable | ||||||
| 14 | receiver fees and receiver's attorney's fees approved
by the | ||||||
| 15 | Secretary, (b) all expenses of any preliminary or other | ||||||
| 16 | examinations
into the condition of the community currency | ||||||
| 17 | exchange or receivership,
(c) all expenses incurred by the | ||||||
| 18 | Secretary which are incident to possession
and control of any | ||||||
| 19 | property or records of the community currency exchange, and
(d) | ||||||
| 20 | reasonable expenses incurred by the Secretary as the result of | ||||||
| 21 | business
agreements or contractual arrangements necessary to | ||||||
| 22 | insure that the services
of the community currency exchanges | ||||||
| 23 | are delivered to the community without
interruption. Said | ||||||
| 24 | business agreements or contractual arrangements may
include, | ||||||
| 25 | but are not limited to, agreements made by the Secretary, or by
| ||||||
| 26 | the Receiver with the approval of the Secretary, with banks, | ||||||
| |||||||
| |||||||
| 1 | money order
companies, bonding companies and other types of | ||||||
| 2 | financial institutions;
Second, allowed claims by a purchaser | ||||||
| 3 | of money orders issued on demand of
the community currency | ||||||
| 4 | exchange being liquidated; Third, allowed claims
arising by | ||||||
| 5 | virtue of and to the extent of the amount a utility customer
| ||||||
| 6 | deposits with the community currency exchange being liquidated | ||||||
| 7 | which are
not remitted to the utility company; Fourth,
allowed | ||||||
| 8 | claims arising by virtue of and to the extent of the amount | ||||||
| 9 | paid
by a purchaser of Illinois license plates, vehicle | ||||||
| 10 | stickers sold for
State and municipal governments in Illinois, | ||||||
| 11 | and temporary
Illinois registration permits purchased at the | ||||||
| 12 | currency exchange being
liquidated; Fifth, allowed unsecured | ||||||
| 13 | claims for
wages or salaries, excluding vacation, severance and | ||||||
| 14 | sick leave pay earned
by employee earned within 90 days prior | ||||||
| 15 | to the appointment of a Receiver;
Sixth, secured claims; | ||||||
| 16 | Seventh, allowed unsecured claims of any tax, and interest and | ||||||
| 17 | penalty on
the tax; Eighth, allowed unsecured claims other than | ||||||
| 18 | a kind specified in
paragraph one, two and three of this | ||||||
| 19 | Section, filed with the Secretary within
the time the Secretary | ||||||
| 20 | fixes for filing claims; Ninth, allowed unsecured
claims, other | ||||||
| 21 | than a kind specified in paragraphs one, two and three of this
| ||||||
| 22 | Section filed with the Secretary after the time fixed for | ||||||
| 23 | filing claims
by the Secretary; Tenth, allowed creditor
claims | ||||||
| 24 | asserted by an owner, member, or stockholder of the community
| ||||||
| 25 | currency exchange
in liquidation; Eleventh, after one year from | ||||||
| 26 | the final dissolution of the
currency exchange, all assets not | ||||||
| |||||||
| |||||||
| 1 | used to satisfy allowed claims shall be
distributed pro rata to | ||||||
| 2 | the owner, owners, members, or stockholders of the
currency | ||||||
| 3 | exchange.
| ||||||
| 4 | The Secretary shall pay all claims of equal priority | ||||||
| 5 | according to the schedule
set out above, and shall not pay | ||||||
| 6 | claims of lower priority until all higher
priority claims are | ||||||
| 7 | satisfied. If insufficient assets are available to
meet all | ||||||
| 8 | claims of equal priority, those assets shall be distributed pro
| ||||||
| 9 | rata among those claims. All unclaimed assets of a currency | ||||||
| 10 | exchange shall
be deposited with the Secretary to be paid out | ||||||
| 11 | by him when proper claims
therefor are presented to the | ||||||
| 12 | Secretary. If there are funds remaining after the conclusion of | ||||||
| 13 | a receivership of an abandoned currency exchange, the remaining | ||||||
| 14 | funds shall be considered unclaimed property and remitted to | ||||||
| 15 | the State Treasurer under the Revised Uniform Disposition of | ||||||
| 16 | Unclaimed Property Act.
| ||||||
| 17 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 18 | (205 ILCS 405/19.3) (from Ch. 17, par. 4838)
| ||||||
| 19 | (Text of Section before amendment by P.A. 100-704)
| ||||||
| 20 | Sec. 19.3. (A) The General Assembly hereby finds and | ||||||
| 21 | declares: community
currency exchanges and ambulatory currency | ||||||
| 22 | exchanges provide important and
vital services to Illinois | ||||||
| 23 | citizens. In so doing, they transact extensive
business | ||||||
| 24 | involving check cashing and the writing of money orders in | ||||||
| 25 | communities
in which banking services are generally | ||||||
| |||||||
| |||||||
| 1 | unavailable. Customers of currency
exchanges who receive these | ||||||
| 2 | services must be protected from being charged
unreasonable and | ||||||
| 3 | unconscionable rates for cashing checks and purchasing
money | ||||||
| 4 | orders. The Illinois Department of Financial and Professional | ||||||
| 5 | Regulation has the
responsibility for regulating the | ||||||
| 6 | operations of currency exchanges and has
the expertise to | ||||||
| 7 | determine reasonable maximum rates to be charged for check
| ||||||
| 8 | cashing and money order purchases. Therefore, it is in the | ||||||
| 9 | public interest,
convenience, welfare and good to have the | ||||||
| 10 | Department establish reasonable
maximum rate schedules for | ||||||
| 11 | check cashing and the issuance of money orders
and to require | ||||||
| 12 | community and ambulatory currency exchanges to prominently
| ||||||
| 13 | display to the public the fees charged for all services.
The | ||||||
| 14 | Secretary shall review, each year, the cost of operation of the | ||||||
| 15 | Currency
Exchange Section and the revenue generated from | ||||||
| 16 | currency exchange
examinations and report to the General | ||||||
| 17 | Assembly if the need exists for an
increase in the fees | ||||||
| 18 | mandated by this Act to maintain the Currency Exchange Section
| ||||||
| 19 | at a fiscally self-sufficient level. The Secretary shall | ||||||
| 20 | include
in such report the total amount of funds remitted to | ||||||
| 21 | the State and delivered
to the State Treasurer by currency | ||||||
| 22 | exchanges pursuant to the Revised Uniform
Disposition of | ||||||
| 23 | Unclaimed Property Act.
| ||||||
| 24 | (B) The Secretary shall, by rules adopted in accordance | ||||||
| 25 | with the Illinois
Administrative Procedure Act, expeditiously | ||||||
| 26 | formulate and issue schedules of
reasonable maximum rates which | ||||||
| |||||||
| |||||||
| 1 | can be charged for check cashing and writing of
money orders by | ||||||
| 2 | community currency exchanges and ambulatory currency | ||||||
| 3 | exchanges.
| ||||||
| 4 | (1) In determining the maximum rate schedules for the | ||||||
| 5 | purposes of this
Section the Secretary shall take into | ||||||
| 6 | account:
| ||||||
| 7 | (a) Rates charged in the past for the cashing of | ||||||
| 8 | checks and the issuance
of money orders by community | ||||||
| 9 | and ambulatory currency exchanges.
| ||||||
| 10 | (b) Rates charged by banks or other business | ||||||
| 11 | entities for rendering the
same or similar services and | ||||||
| 12 | the factors upon which those rates are based.
| ||||||
| 13 | (c) The income, cost and expense of the operation | ||||||
| 14 | of currency exchanges.
| ||||||
| 15 | (d) Rates charged by currency exchanges or other | ||||||
| 16 | similar entities
located in other states for the same | ||||||
| 17 | or similar services and the factors upon
which those | ||||||
| 18 | rates are based.
| ||||||
| 19 | (e) Rates charged by the United States Postal | ||||||
| 20 | Service for the issuing
of money orders and the factors | ||||||
| 21 | upon which those rates are based.
| ||||||
| 22 | (f) A reasonable profit for a currency exchange | ||||||
| 23 | operation.
| ||||||
| 24 | (2)(a) The schedule of reasonable maximum rates | ||||||
| 25 | established pursuant
to this Section may be modified by the | ||||||
| 26 | Secretary from time to time pursuant
to rules adopted in | ||||||
| |||||||
| |||||||
| 1 | accordance with the Illinois Administrative Procedure Act.
| ||||||
| 2 | (b) Upon the filing of a verified petition setting | ||||||
| 3 | forth allegations
demonstrating reasonable cause to | ||||||
| 4 | believe that the schedule of maximum rates
previously | ||||||
| 5 | issued and promulgated should be adjusted, the Secretary | ||||||
| 6 | shall
expeditiously:
| ||||||
| 7 | (i) reject the petition if it fails to demonstrate | ||||||
| 8 | reasonable cause to
believe that an adjustment is | ||||||
| 9 | necessary; or
| ||||||
| 10 | (ii) conduct such hearings, in accordance with | ||||||
| 11 | this Section, as may be
necessary to determine whether | ||||||
| 12 | the petition should be granted in whole or in
part.
| ||||||
| 13 | (c) No petition may be filed pursuant to subparagraph | ||||||
| 14 | (a) of paragraph
(2) of subsection (B) unless:
| ||||||
| 15 | (i) at least nine months have expired since the | ||||||
| 16 | last promulgation of
schedules of maximum rates; and
| ||||||
| 17 | (ii) at least one-fourth of all community currency | ||||||
| 18 | exchange licensees
join in a petition or, in the case | ||||||
| 19 | of ambulatory currency exchanges, a licensee
or | ||||||
| 20 | licensees authorized to serve at least 100 locations | ||||||
| 21 | join in a petition.
| ||||||
| 22 | (3) Any currency exchange may charge lower fees than | ||||||
| 23 | those of the
applicable maximum fee schedule after filing | ||||||
| 24 | with the Secretary a schedule of
fees it proposes to use.
| ||||||
| 25 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | (Text of Section after amendment by P.A. 100-704)
| ||||||
| 2 | Sec. 19.3. (A) The General Assembly hereby finds and | ||||||
| 3 | declares: community
currency exchanges and ambulatory currency | ||||||
| 4 | exchanges provide important and
vital services to Illinois | ||||||
| 5 | citizens. In so doing, they transact extensive
business | ||||||
| 6 | involving check cashing and the writing of money orders in | ||||||
| 7 | communities
in which banking services are generally | ||||||
| 8 | unavailable. Customers of currency
exchanges who receive these | ||||||
| 9 | services must be protected from being charged
unreasonable and | ||||||
| 10 | unconscionable rates for cashing checks and purchasing
money | ||||||
| 11 | orders. The Illinois Department of Financial and Professional | ||||||
| 12 | Regulation has the
responsibility for regulating the | ||||||
| 13 | operations of currency exchanges and has
the expertise to | ||||||
| 14 | determine reasonable maximum rates to be charged for check
| ||||||
| 15 | cashing and money order purchases. Therefore, it is in the | ||||||
| 16 | public interest,
convenience, welfare and good to have the | ||||||
| 17 | Department establish reasonable
maximum rate schedules for | ||||||
| 18 | check cashing and the issuance of money orders
and to require | ||||||
| 19 | community and ambulatory currency exchanges to prominently
| ||||||
| 20 | display to the public the fees charged for all services.
The | ||||||
| 21 | Secretary shall review, each year, the cost of operation of the | ||||||
| 22 | Currency
Exchange Section and the revenue generated from | ||||||
| 23 | currency exchange
examinations and report to the General | ||||||
| 24 | Assembly if the need exists for an
increase in the fees | ||||||
| 25 | mandated by this Act to maintain the Currency Exchange Section
| ||||||
| 26 | at a fiscally self-sufficient level. The Secretary shall | ||||||
| |||||||
| |||||||
| 1 | include
in such report the total amount of funds remitted to | ||||||
| 2 | the State and delivered
to the State Treasurer by currency | ||||||
| 3 | exchanges pursuant to the Revised Uniform
Disposition of | ||||||
| 4 | Unclaimed Property Act.
| ||||||
| 5 | (B) The Secretary shall, by rules adopted in accordance | ||||||
| 6 | with the Illinois
Administrative Procedure Act, expeditiously | ||||||
| 7 | formulate and issue schedules of
reasonable maximum rates which | ||||||
| 8 | can be charged for check cashing and writing of
money orders by | ||||||
| 9 | community currency exchanges and ambulatory currency | ||||||
| 10 | exchanges.
| ||||||
| 11 | (1) In determining the maximum rate schedules for the | ||||||
| 12 | purposes of this
Section the Secretary shall take into | ||||||
| 13 | account:
| ||||||
| 14 | (a) Rates charged in the past for the cashing of | ||||||
| 15 | checks and the issuance
of money orders by community | ||||||
| 16 | and ambulatory currency exchanges.
| ||||||
| 17 | (b) Rates charged by banks or other business | ||||||
| 18 | entities for rendering the
same or similar services and | ||||||
| 19 | the factors upon which those rates are based.
| ||||||
| 20 | (c) The income, cost and expense of the operation | ||||||
| 21 | of currency exchanges.
| ||||||
| 22 | (d) Rates charged by currency exchanges or other | ||||||
| 23 | similar entities
located in other states for the same | ||||||
| 24 | or similar services and the factors upon
which those | ||||||
| 25 | rates are based.
| ||||||
| 26 | (e) Rates charged by the United States Postal | ||||||
| |||||||
| |||||||
| 1 | Service for the issuing
of money orders and the factors | ||||||
| 2 | upon which those rates are based.
| ||||||
| 3 | (f) A reasonable profit for a currency exchange | ||||||
| 4 | operation.
| ||||||
| 5 | (g) The impact on consumers. | ||||||
| 6 | (h) Whether the rate schedule will | ||||||
| 7 | disproportionately impact anyone on the basis of any | ||||||
| 8 | protected characteristic or category listed in | ||||||
| 9 | subsection (Q) of Section 1-103 of the Illinois Human | ||||||
| 10 | Rights Act as those terms are defined in that Section. | ||||||
| 11 | (2)(a) The schedule of reasonable maximum rates | ||||||
| 12 | established pursuant
to this Section may be modified by the | ||||||
| 13 | Secretary from time to time pursuant
to rules adopted in | ||||||
| 14 | accordance with the Illinois Administrative Procedure Act.
| ||||||
| 15 | (b) Upon the filing of a verified petition setting | ||||||
| 16 | forth allegations
demonstrating reasonable cause to | ||||||
| 17 | believe that the schedule of maximum rates
previously | ||||||
| 18 | issued and promulgated should be adjusted, the Secretary | ||||||
| 19 | shall
expeditiously:
| ||||||
| 20 | (i) reject the petition if it fails to demonstrate | ||||||
| 21 | reasonable cause to
believe that an adjustment is | ||||||
| 22 | necessary; or
| ||||||
| 23 | (ii) conduct such hearings, in accordance with | ||||||
| 24 | this Section, as may be
necessary to determine whether | ||||||
| 25 | the petition should be granted in whole or in
part.
| ||||||
| 26 | (c) No petition may be filed pursuant to subparagraph | ||||||
| |||||||
| |||||||
| 1 | (a) of paragraph
(2) of subsection (B) unless:
| ||||||
| 2 | (i) at least nine months have expired since the | ||||||
| 3 | last promulgation of
schedules of maximum rates; and
| ||||||
| 4 | (ii) at least one-fourth of all community currency | ||||||
| 5 | exchange licensees
join in a petition or, in the case | ||||||
| 6 | of ambulatory currency exchanges, a licensee
or | ||||||
| 7 | licensees authorized to serve at least 100 locations | ||||||
| 8 | join in a petition.
| ||||||
| 9 | (3) Any currency exchange may charge lower fees than | ||||||
| 10 | those of the
applicable maximum fee schedule after filing | ||||||
| 11 | with the Secretary a schedule of
fees it proposes to use.
| ||||||
| 12 | (Source: P.A. 100-22, eff. 1-1-18; 100-704, eff. 6-1-19.)
| ||||||
| 13 | Section 70. The Corporate Fiduciary Act is amended by | ||||||
| 14 | changing Section 6-14 as follows:
| ||||||
| 15 | (205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
| ||||||
| 16 | Sec. 6-14.
From time to time during receivership the
| ||||||
| 17 | Commissioner shall make and pay from monies of the corporate
| ||||||
| 18 | fiduciary a ratable dividend on all claims as may be proved to
| ||||||
| 19 | his or her satisfaction or adjudicated by the court. After one
| ||||||
| 20 | year from the entry of a judgment of dissolution, all unclaimed
| ||||||
| 21 | dividends shall be remitted to the State Treasurer in | ||||||
| 22 | accordance with the Revised
Uniform Disposition of Unclaimed | ||||||
| 23 | Property Act, as now or hereafter amended,
together with a list | ||||||
| 24 | of all unpaid claimants, their last known addresses and
the | ||||||
| |||||||
| |||||||
| 1 | amounts unpaid.
| ||||||
| 2 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 3 | Section 75. The Transmitters of Money Act is amended by | ||||||
| 4 | changing Section 30 as follows:
| ||||||
| 5 | (205 ILCS 657/30)
| ||||||
| 6 | Sec. 30. Surety bond.
| ||||||
| 7 | (a) An applicant for a license shall post and a
licensee | ||||||
| 8 | must maintain with the Director a bond or bonds issued by | ||||||
| 9 | corporations
qualified to do business as surety companies in | ||||||
| 10 | this State.
| ||||||
| 11 | (b) The applicant or licensee shall post a bond in the | ||||||
| 12 | amount of $50,000 or an amount equal to 1% of all | ||||||
| 13 | Illinois-based activity, whichever is greater, up to
a maximum | ||||||
| 14 | amount of $2,000,000. When the amount of the required bond | ||||||
| 15 | exceeds
$1,000,000, the applicant or licensee may, in the | ||||||
| 16 | alternative, post a bond in
the amount of $1,000,000 plus a | ||||||
| 17 | dollar for dollar increase in the net worth of
the applicant or | ||||||
| 18 | licensee over and above the amount required in Section 20, up
| ||||||
| 19 | to a total amount of $2,000,000.
| ||||||
| 20 | (c) The bond must be in a form satisfactory to the Director | ||||||
| 21 | and shall run
to the State of Illinois for the benefit of any | ||||||
| 22 | claimant against the applicant
or licensee with respect to the | ||||||
| 23 | receipt, handling, transmission, and payment
of money by the | ||||||
| 24 | licensee or authorized seller in connection with the licensed
| ||||||
| |||||||
| |||||||
| 1 | operations. A claimant damaged by a breach of the conditions of | ||||||
| 2 | a
bond
shall have a right to action upon the bond for damages | ||||||
| 3 | suffered thereby and
may bring suit directly on the bond, or | ||||||
| 4 | the Director may bring suit on
behalf of the claimant.
| ||||||
| 5 | (d) (Blank).
| ||||||
| 6 | (e) (Blank).
| ||||||
| 7 | (f) After receiving a license, the licensee must maintain
| ||||||
| 8 | the required bond plus net worth (if applicable) until
5 years | ||||||
| 9 | after it ceases to do business in this State unless all | ||||||
| 10 | outstanding
payment instruments are eliminated or the | ||||||
| 11 | provisions under the Revised Uniform
Disposition of Unclaimed | ||||||
| 12 | Property Act have become operative and are adhered to by the
| ||||||
| 13 | licensee. Notwithstanding this provision, however, the amount | ||||||
| 14 | required to be
maintained may be reduced to the extent that the | ||||||
| 15 | amount of the licensee's
payment instruments outstanding in | ||||||
| 16 | this State are reduced.
| ||||||
| 17 | (g) If the Director at any time reasonably determines that | ||||||
| 18 | the required bond
is insecure, deficient in amount, or
| ||||||
| 19 | exhausted in
whole or in part, he may in writing require the | ||||||
| 20 | filing of a new or supplemental
bond in order to secure | ||||||
| 21 | compliance with this Act and may
demand compliance with the | ||||||
| 22 | requirement within 30 days following
service on the licensee.
| ||||||
| 23 | (Source: P.A. 100-22, eff. 1-1-18; 100-640, eff. 7-27-18.)
| ||||||
| 24 | Section 80. The Adverse Claims to Deposit Accounts Act is | ||||||
| 25 | amended by changing Section 10 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (205 ILCS 700/10)
| ||||||
| 2 | Sec. 10. Application of Act. This Act shall not preempt:
| ||||||
| 3 | (1) the Revised Uniform Disposition of Unclaimed | ||||||
| 4 | Property Act, nor shall any
provision of this Act be | ||||||
| 5 | construed to relieve any holder, including a financial
| ||||||
| 6 | institution, from reporting and remitting all unclaimed | ||||||
| 7 | property, including
deposit accounts, under the Revised | ||||||
| 8 | Uniform Disposition of Unclaimed Property Act;
| ||||||
| 9 | (2) the Uniform Commercial Code, nor shall any | ||||||
| 10 | provision of this Act be
construed as affecting the rights | ||||||
| 11 | of a person with respect to a deposit account
under the | ||||||
| 12 | Uniform Commercial Code;
| ||||||
| 13 | (3) the provisions of Section 2-1402 of the Code of | ||||||
| 14 | Civil Procedure, nor
shall any provision of this Act be | ||||||
| 15 | construed as affecting the rights of a
person with respect | ||||||
| 16 | to a deposit account under Section 2-1402 of the Code of
| ||||||
| 17 | Civil Procedure;
| ||||||
| 18 | (4) the provisions of Part 7 of Article II of the Code | ||||||
| 19 | of Civil Procedure,
nor shall any provision of this Act be | ||||||
| 20 | construed as affecting the rights of a
person with respect | ||||||
| 21 | to a deposit account under the provisions of Part 7 of
| ||||||
| 22 | Article II of the Code of Civil Procedure;
| ||||||
| 23 | (5) the provisions of Article XXV of the Probate Act of | ||||||
| 24 | 1975, nor shall any
provision of this Act be construed as | ||||||
| 25 | affecting the rights of a person with
respect to a deposit | ||||||
| |||||||
| |||||||
| 1 | account under the provisions of Article XXV of the
Probate | ||||||
| 2 | Act of 1975; or
| ||||||
| 3 | (6) the Safety Deposit Box Opening Act, nor shall any | ||||||
| 4 | provision of this Act
be construed as affecting the rights | ||||||
| 5 | of a person with respect to a deposit
account under the | ||||||
| 6 | Safety Deposit Box Opening Act.
| ||||||
| 7 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 8 | Section 85. The Illinois Insurance Code is amended by | ||||||
| 9 | changing Section 210 as follows:
| ||||||
| 10 | (215 ILCS 5/210) (from Ch. 73, par. 822)
| ||||||
| 11 | Sec. 210. Distribution of assets; priorities; unpaid | ||||||
| 12 | dividends.
| ||||||
| 13 | (1) Any time after the last day fixed for the filing of
| ||||||
| 14 | proofs of claims in the liquidation of a company, the court | ||||||
| 15 | may, upon the
application of the Director authorize him to | ||||||
| 16 | declare out of the funds
remaining in his hands, one or more | ||||||
| 17 | dividends upon all claims allowed in
accordance with the | ||||||
| 18 | priorities established in Section 205.
| ||||||
| 19 | (2) Where there has been no adjudication of insolvency, the | ||||||
| 20 | Director
shall pay all allowed claims in full in accordance | ||||||
| 21 | with the priorities set
forth in Section 205. The director | ||||||
| 22 | shall not be chargeable for any
assets so distributed to any | ||||||
| 23 | claimant who has failed to file a proper proof
of claim before | ||||||
| 24 | such distribution has been made.
| ||||||
| |||||||
| |||||||
| 1 | (3) When subsequent to an adjudication of insolvency, | ||||||
| 2 | pursuant to Section
208, a surplus is found to exist after the | ||||||
| 3 | payment in full of all allowed
claims falling within the | ||||||
| 4 | priorities set forth in paragraphs (a), (b), (c),
(d),
(e), (f) | ||||||
| 5 | and (g) of subsection (1) of Section 205 and which have been | ||||||
| 6 | duly
filed prior to the last date fixed for the filing thereof, | ||||||
| 7 | and after the
setting aside of a reserve for all additional | ||||||
| 8 | costs and expenses of the
proceeding, the court shall set a new | ||||||
| 9 | date for the filing of claims. After the
expiration of the new | ||||||
| 10 | date, all allowed claims filed on or before said new date
| ||||||
| 11 | together with all previously allowed claims falling within the | ||||||
| 12 | priorities set
forth in paragraphs (h) and (i) of subsection | ||||||
| 13 | (1) of Section 205 shall be paid
in accordance with the | ||||||
| 14 | priorities set forth in Section 205.
| ||||||
| 15 | (4) Dividends remaining unclaimed or unpaid in the hands of | ||||||
| 16 | the
Director for 6 months after the final order of distribution | ||||||
| 17 | may be
by him deposited in one or more savings and loan | ||||||
| 18 | associations, State or
national banks, trust companies or | ||||||
| 19 | savings banks to the credit of the Director,
whomsoever he may | ||||||
| 20 | be, in trust for the person entitled thereto, but no such
| ||||||
| 21 | person shall be entitled to any interest upon such deposit. All | ||||||
| 22 | such deposits
shall be entitled to priority of payment in case | ||||||
| 23 | of the insolvency or voluntary
or involuntary liquidation of | ||||||
| 24 | the depositary on an equality with any other
priority given by | ||||||
| 25 | the banking law. Any such funds together with interest, if
any, | ||||||
| 26 | paid or credited thereon, remaining and unclaimed in the hands | ||||||
| |||||||
| |||||||
| 1 | of the
Director in Trust after 2 years shall be presumed | ||||||
| 2 | abandoned and reported and
delivered to the State Treasurer and | ||||||
| 3 | become subject to the provisions of the Revised
Uniform | ||||||
| 4 | Disposition of Unclaimed Property Act.
| ||||||
| 5 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 6 | Section 90. The Unclaimed Life Insurance Benefits Act is | ||||||
| 7 | amended by changing Sections 5, 15, and 20 as follows:
| ||||||
| 8 | (215 ILCS 185/5) | ||||||
| 9 | Sec. 5. Purpose. This Act shall require recognition of the | ||||||
| 10 | Revised Uniform Disposition of Unclaimed Property Act and | ||||||
| 11 | require the complete and proper disclosure, transparency, and | ||||||
| 12 | accountability relating to any method of payment for life | ||||||
| 13 | insurance, annuity, or retained asset agreement death | ||||||
| 14 | benefits.
| ||||||
| 15 | (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)
| ||||||
| 16 | (215 ILCS 185/15) | ||||||
| 17 | Sec. 15. Insurer conduct. | ||||||
| 18 | (a) An insurer shall initially perform a comparison of its | ||||||
| 19 | insureds', annuitants', and retained asset account holders' | ||||||
| 20 | in-force policies, annuity contracts, and retained asset | ||||||
| 21 | accounts in force on or after January 1, 2017 by using the full | ||||||
| 22 | Death Master File. The initial comparison shall be completed on | ||||||
| 23 | or before December 31, 2017. An insurer required to perform a | ||||||
| |||||||
| |||||||
| 1 | comparison of its insureds', annuitants', and retained asset | ||||||
| 2 | account holders' in-force policies, annuity contracts, and | ||||||
| 3 | retained asset accounts in force on or after January 1, 2012 | ||||||
| 4 | shall perform a comparison of policies, annuity contracts, and | ||||||
| 5 | retained asset accounts in force between January 1, 2012 and | ||||||
| 6 | December 31, 2016 on or before December 31, 2018 by using the | ||||||
| 7 | full Death Master File. An insurer required to perform a | ||||||
| 8 | comparison of electronic searchable files concerning its | ||||||
| 9 | insureds', annuitants', and retained asset account holders' | ||||||
| 10 | in-force policies, annuity contracts, and retained asset | ||||||
| 11 | accounts in force on or after January 1, 2000 shall perform a | ||||||
| 12 | comparison of policies, annuity contracts, and retained asset | ||||||
| 13 | accounts in force between January 1, 2000 and December 31, 2016 | ||||||
| 14 | on or before December 31, 2018 by using the full Death Master | ||||||
| 15 | File. Thereafter, an insurer shall perform a comparison on at | ||||||
| 16 | least a semi-annual basis using the Death Master File update | ||||||
| 17 | files for comparisons to identify potential matches of its | ||||||
| 18 | insureds, annuitants, and retained asset account holders. In | ||||||
| 19 | the event that one of the insurer's lines of business conducts | ||||||
| 20 | a search for matches of its insureds, annuitants, and retained | ||||||
| 21 | asset account holders against the Death Master File at | ||||||
| 22 | intervals more frequently than semi-annually, then all lines of | ||||||
| 23 | the insurer's business shall conduct searches for matches | ||||||
| 24 | against the Death Master File with the same frequency. Within 6 | ||||||
| 25 | months after acquisition of policies, annuity contracts, or | ||||||
| 26 | retained asset accounts from another insurer, the acquiring | ||||||
| |||||||
| |||||||
| 1 | insurer shall compare all newly acquired policies, annuity | ||||||
| 2 | contracts, and retained asset accounts that were not searched | ||||||
| 3 | by the previous insurer in compliance with this Act against the | ||||||
| 4 | complete Death Master File to identify potential matches of its | ||||||
| 5 | insureds, annuitants, and retained asset account holders. Upon | ||||||
| 6 | any subsequent acquisition of policies, annuity contracts, or | ||||||
| 7 | retained asset accounts from another insurer, when the previous | ||||||
| 8 | insurer has already conducted a search of the newly acquired | ||||||
| 9 | policies, annuity contracts, and retained asset accounts using | ||||||
| 10 | the complete Death Master File, the acquiring insurer shall | ||||||
| 11 | compare all newly acquired policies, annuity contracts, and | ||||||
| 12 | retained asset accounts using all of the Death Master File | ||||||
| 13 | updates since the time the previous insurer conducted the | ||||||
| 14 | complete search to identify potential matches of its insureds, | ||||||
| 15 | annuitants, and retained asset account holders. | ||||||
| 16 | An insured, an annuitant, or a retained asset account | ||||||
| 17 | holder is presumed dead if the date of his or her death is | ||||||
| 18 | indicated by the comparison required in this subsection (a), | ||||||
| 19 | unless the insurer has competent and substantial evidence that | ||||||
| 20 | the person is living, including, but not limited to, a contact | ||||||
| 21 | made by the insurer with the person or his or her legal | ||||||
| 22 | representative. | ||||||
| 23 | For those potential matches identified as a result of a | ||||||
| 24 | Death Master File match, the insurer shall within 120 days | ||||||
| 25 | after the date of death notice, if the insurer has not been | ||||||
| 26 | contacted by a beneficiary, determine whether benefits are due | ||||||
| |||||||
| |||||||
| 1 | in accordance with the applicable policy or contract and, if | ||||||
| 2 | benefits are due in accordance with the applicable policy or | ||||||
| 3 | contract: | ||||||
| 4 | (1) use good faith efforts, which shall be documented | ||||||
| 5 | by the insurer, to locate the beneficiary or beneficiaries; | ||||||
| 6 | the Department shall establish by administrative rule | ||||||
| 7 | minimum standards for what constitutes good faith efforts | ||||||
| 8 | to locate a beneficiary, which shall include: (A) searching | ||||||
| 9 | insurer records; (B) the appropriate use of First Class | ||||||
| 10 | United States mail, e-mail addresses, and telephone calls; | ||||||
| 11 | and (C) reasonable efforts by insurers to obtain updated | ||||||
| 12 | contact information for the beneficiary or beneficiaries; | ||||||
| 13 | good faith efforts shall not include additional attempts to | ||||||
| 14 | contact the beneficiary at an address already confirmed not | ||||||
| 15 | to be current; and | ||||||
| 16 | (2) provide the appropriate claims forms or | ||||||
| 17 | instructions to the beneficiary or beneficiaries to make a | ||||||
| 18 | claim, including the need to provide an official death | ||||||
| 19 | certificate if applicable under the policy or annuity | ||||||
| 20 | contract. | ||||||
| 21 | (b) Insurers shall implement procedures to account for the | ||||||
| 22 | following when conducting searches of the Death Master File: | ||||||
| 23 | (1) common nicknames, initials used in lieu of a first | ||||||
| 24 | or middle name, use of a middle name, compound first and | ||||||
| 25 | middle names, and interchanged first and middle names; | ||||||
| 26 | (2) compound last names, maiden or married names, and | ||||||
| |||||||
| |||||||
| 1 | hyphens, blank spaces, or apostrophes in last names; | ||||||
| 2 | (3) transposition of the "month" and "date" portions of | ||||||
| 3 | the date of birth; and | ||||||
| 4 | (4) incomplete social security numbers. | ||||||
| 5 | (c) To the extent permitted by law, an insurer may disclose | ||||||
| 6 | the minimum necessary personal information about the insured, | ||||||
| 7 | annuity owner, retained asset account holder, or beneficiary to | ||||||
| 8 | a person whom the insurer reasonably believes may be able to | ||||||
| 9 | assist the insurer with locating the beneficiary or a person | ||||||
| 10 | otherwise entitled to payment of the claims proceeds. | ||||||
| 11 | (d) An insurer or its service provider shall not charge any | ||||||
| 12 | beneficiary or other authorized representative for any fees or | ||||||
| 13 | costs associated with a Death Master File search or | ||||||
| 14 | verification of a Death Master File match conducted pursuant to | ||||||
| 15 | this Act. | ||||||
| 16 | (e) The benefits from a policy, annuity contract, or a | ||||||
| 17 | retained asset account, plus any applicable accrued interest, | ||||||
| 18 | shall first be payable to the designated beneficiaries or | ||||||
| 19 | owners and, in the event the beneficiaries or owners cannot be | ||||||
| 20 | found, shall be reported and delivered to the State Treasurer | ||||||
| 21 | pursuant to the Revised Uniform Disposition of Unclaimed | ||||||
| 22 | Property Act. Nothing in this subsection (e) is intended to | ||||||
| 23 | alter the amounts reportable under the existing provisions of | ||||||
| 24 | the Revised Uniform Disposition of Unclaimed Property Act or to | ||||||
| 25 | allow the imposition of additional statutory interest under | ||||||
| 26 | Article XIV of the Illinois Insurance Code. | ||||||
| |||||||
| |||||||
| 1 | (f) Failure to meet any requirement of this Section with | ||||||
| 2 | such frequency as to constitute a general business practice is | ||||||
| 3 | a violation of Section 424 of the Illinois Insurance Code. | ||||||
| 4 | Nothing in this Section shall be construed to create or imply a | ||||||
| 5 | private cause of action for a violation of this Section.
| ||||||
| 6 | (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18; | ||||||
| 7 | 100-543, eff. 1-1-18; 100-863, eff. 8-14-18.)
| ||||||
| 8 | (215 ILCS 185/20) | ||||||
| 9 | Sec. 20. Revised Uniform Disposition of Unclaimed Property | ||||||
| 10 | Act. Nothing in this Act shall be construed to amend, modify, | ||||||
| 11 | or supersede the Revised Uniform Disposition of Unclaimed | ||||||
| 12 | Property Act, including the authority of the State Treasurer to | ||||||
| 13 | examine the records of any person if the State Treasurer has | ||||||
| 14 | reason to believe that such person has failed to report | ||||||
| 15 | property that should have been reported pursuant to the Revised | ||||||
| 16 | Uniform Disposition of Unclaimed Property Act.
| ||||||
| 17 | (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)
| ||||||
| 18 | Section 95. The Real Estate License Act of 2000 is amended | ||||||
| 19 | by changing Section 20-20 as follows:
| ||||||
| 20 | (225 ILCS 454/20-20)
| ||||||
| 21 | (Section scheduled to be repealed on January 1, 2020)
| ||||||
| 22 | Sec. 20-20. Grounds for discipline. | ||||||
| 23 | (a) The Department may refuse to issue or renew a license, | ||||||
| |||||||
| |||||||
| 1 | may place on probation, suspend,
or
revoke any
license, | ||||||
| 2 | reprimand, or take any other disciplinary or non-disciplinary | ||||||
| 3 | action as the Department may deem proper and impose a
fine not | ||||||
| 4 | to exceed
$25,000 upon any licensee or applicant under this Act | ||||||
| 5 | or any person who holds himself or herself out as an applicant | ||||||
| 6 | or licensee or against a licensee in handling his or her own | ||||||
| 7 | property, whether held by deed, option, or otherwise, for any | ||||||
| 8 | one or any combination of the
following causes:
| ||||||
| 9 | (1) Fraud or misrepresentation in applying for, or | ||||||
| 10 | procuring, a license under this Act or in connection with | ||||||
| 11 | applying for renewal of a license under this Act.
| ||||||
| 12 | (2) The conviction of or plea of guilty or plea of nolo | ||||||
| 13 | contendere to a felony or misdemeanor in this State or any | ||||||
| 14 | other jurisdiction; or the entry of an administrative | ||||||
| 15 | sanction by a government agency in this State or any other | ||||||
| 16 | jurisdiction. Action taken under this paragraph (2) for a | ||||||
| 17 | misdemeanor or an administrative sanction is limited to a | ||||||
| 18 | misdemeanor or administrative sanction that has as an
| ||||||
| 19 | essential element dishonesty or fraud or involves larceny, | ||||||
| 20 | embezzlement,
or obtaining money, property, or credit by | ||||||
| 21 | false pretenses or by means of a
confidence
game.
| ||||||
| 22 | (3) Inability to practice the profession with | ||||||
| 23 | reasonable judgment, skill, or safety as a result of a | ||||||
| 24 | physical illness, including, but not limited to, | ||||||
| 25 | deterioration through the aging process or loss of motor | ||||||
| 26 | skill, or a mental illness or disability.
| ||||||
| |||||||
| |||||||
| 1 | (4) Practice under this Act as a licensee in a retail | ||||||
| 2 | sales establishment from an office, desk, or space that
is | ||||||
| 3 | not
separated from the main retail business by a separate | ||||||
| 4 | and distinct area within
the
establishment.
| ||||||
| 5 | (5) Having been disciplined by another state, the | ||||||
| 6 | District of Columbia, a territory, a foreign nation, or a | ||||||
| 7 | governmental agency authorized to impose discipline if at | ||||||
| 8 | least one of the grounds for that discipline is the same as | ||||||
| 9 | or
the
equivalent of one of the grounds for which a | ||||||
| 10 | licensee may be disciplined under this Act. A certified | ||||||
| 11 | copy of the record of the action by the other state or | ||||||
| 12 | jurisdiction shall be prima facie evidence thereof.
| ||||||
| 13 | (6) Engaging in the practice of real estate brokerage
| ||||||
| 14 | without a
license or after the licensee's license or | ||||||
| 15 | temporary permit was expired or while the license was
| ||||||
| 16 | inoperative.
| ||||||
| 17 | (7) Cheating on or attempting to subvert the Real
| ||||||
| 18 | Estate License Exam or continuing education exam. | ||||||
| 19 | (8) Aiding or abetting an applicant
to
subvert or cheat | ||||||
| 20 | on the Real Estate License Exam or continuing education | ||||||
| 21 | exam
administered pursuant to this Act.
| ||||||
| 22 | (9) Advertising that is inaccurate, misleading, or | ||||||
| 23 | contrary to the provisions of the Act.
| ||||||
| 24 | (10) Making any substantial misrepresentation or | ||||||
| 25 | untruthful advertising.
| ||||||
| 26 | (11) Making any false promises of a character likely to | ||||||
| |||||||
| |||||||
| 1 | influence,
persuade,
or induce.
| ||||||
| 2 | (12) Pursuing a continued and flagrant course of | ||||||
| 3 | misrepresentation or the
making
of false promises through | ||||||
| 4 | licensees, employees, agents, advertising, or
otherwise.
| ||||||
| 5 | (13) Any misleading or untruthful advertising, or | ||||||
| 6 | using any trade name or
insignia of membership in any real | ||||||
| 7 | estate organization of which the licensee is
not a member.
| ||||||
| 8 | (14) Acting for more than one party in a transaction | ||||||
| 9 | without providing
written
notice to all parties for whom | ||||||
| 10 | the licensee acts.
| ||||||
| 11 | (15) Representing or attempting to represent a broker | ||||||
| 12 | other than the
sponsoring broker.
| ||||||
| 13 | (16) Failure to account for or to remit any moneys or | ||||||
| 14 | documents coming into
his or her possession that belong to | ||||||
| 15 | others.
| ||||||
| 16 | (17) Failure to maintain and deposit in a special | ||||||
| 17 | account, separate and
apart from
personal and other | ||||||
| 18 | business accounts, all escrow moneys belonging to others
| ||||||
| 19 | entrusted to a licensee
while acting as a broker, escrow | ||||||
| 20 | agent, or temporary custodian of
the funds of others or
| ||||||
| 21 | failure to maintain all escrow moneys on deposit in the | ||||||
| 22 | account until the
transactions are
consummated or | ||||||
| 23 | terminated, except to the extent that the moneys, or any | ||||||
| 24 | part
thereof, shall be: | ||||||
| 25 | (A)
disbursed prior to the consummation or | ||||||
| 26 | termination (i) in accordance with
the
written | ||||||
| |||||||
| |||||||
| 1 | direction of
the principals to the transaction or their | ||||||
| 2 | duly authorized agents, (ii) in accordance with
| ||||||
| 3 | directions providing for the
release, payment, or | ||||||
| 4 | distribution of escrow moneys contained in any written
| ||||||
| 5 | contract signed by the
principals to the transaction or | ||||||
| 6 | their duly authorized agents,
or (iii)
pursuant to an | ||||||
| 7 | order of a court of competent
jurisdiction; or | ||||||
| 8 | (B) deemed abandoned and transferred to the Office | ||||||
| 9 | of the State Treasurer to be handled as unclaimed | ||||||
| 10 | property pursuant to the Revised Uniform Disposition | ||||||
| 11 | of Unclaimed Property Act. Escrow moneys may be deemed | ||||||
| 12 | abandoned under this subparagraph (B) only: (i) in the | ||||||
| 13 | absence of disbursement under subparagraph (A); (ii) | ||||||
| 14 | in the absence of notice of the filing of any claim in | ||||||
| 15 | a court of competent jurisdiction; and (iii) if 6 | ||||||
| 16 | months have elapsed after the receipt of a written | ||||||
| 17 | demand for the escrow moneys from one of the principals | ||||||
| 18 | to the transaction or the principal's duly authorized | ||||||
| 19 | agent.
| ||||||
| 20 | The account
shall be noninterest
bearing, unless the | ||||||
| 21 | character of the deposit is such that payment of interest
| ||||||
| 22 | thereon is otherwise
required by law or unless the | ||||||
| 23 | principals to the transaction specifically
require, in | ||||||
| 24 | writing, that the
deposit be placed in an interest bearing | ||||||
| 25 | account.
| ||||||
| 26 | (18) Failure to make available to the Department all | ||||||
| |||||||
| |||||||
| 1 | escrow records and related documents
maintained in | ||||||
| 2 | connection
with the practice of real estate within 24 hours | ||||||
| 3 | of a request for those
documents by Department personnel.
| ||||||
| 4 | (19) Failing to furnish copies upon request of | ||||||
| 5 | documents relating to a
real
estate transaction to a party | ||||||
| 6 | who has executed that document.
| ||||||
| 7 | (20) Failure of a sponsoring broker to timely provide | ||||||
| 8 | information, sponsor
cards,
or termination of licenses to | ||||||
| 9 | the Department.
| ||||||
| 10 | (21) Engaging in dishonorable, unethical, or | ||||||
| 11 | unprofessional conduct of a
character
likely to deceive, | ||||||
| 12 | defraud, or harm the public.
| ||||||
| 13 | (22) Commingling the money or property of others with | ||||||
| 14 | his or her own money or property.
| ||||||
| 15 | (23) Employing any person on a purely temporary or | ||||||
| 16 | single deal basis as a
means
of evading the law regarding | ||||||
| 17 | payment of commission to nonlicensees on some
contemplated
| ||||||
| 18 | transactions.
| ||||||
| 19 | (24) Permitting the use of his or her license as a | ||||||
| 20 | broker to enable a
leasing agent or
unlicensed person to | ||||||
| 21 | operate a real estate business without actual
| ||||||
| 22 | participation therein and control
thereof by the broker.
| ||||||
| 23 | (25) Any other conduct, whether of the same or a | ||||||
| 24 | different character from
that
specified in this Section, | ||||||
| 25 | that constitutes dishonest dealing.
| ||||||
| 26 | (26) Displaying a "for rent" or "for sale" sign on any | ||||||
| |||||||
| |||||||
| 1 | property without
the written
consent of an owner or his or | ||||||
| 2 | her duly authorized agent or advertising by any
means that | ||||||
| 3 | any property is
for sale or for rent without the written | ||||||
| 4 | consent of the owner or his or her
authorized agent.
| ||||||
| 5 | (27) Failing to provide information requested by the | ||||||
| 6 | Department, or otherwise respond to that request, within 30 | ||||||
| 7 | days of
the
request.
| ||||||
| 8 | (28) Advertising by means of a blind advertisement, | ||||||
| 9 | except as otherwise
permitted in Section 10-30 of this Act.
| ||||||
| 10 | (29) Offering guaranteed sales plans, as defined in | ||||||
| 11 | clause (A) of
this subdivision (29), except to
the extent | ||||||
| 12 | hereinafter set forth:
| ||||||
| 13 | (A) A "guaranteed sales plan" is any real estate | ||||||
| 14 | purchase or sales plan
whereby a licensee enters into a | ||||||
| 15 | conditional or unconditional written contract
with a | ||||||
| 16 | seller, prior to entering into a brokerage agreement | ||||||
| 17 | with the seller, by the
terms of which a licensee | ||||||
| 18 | agrees to purchase a property of the seller within a
| ||||||
| 19 | specified period of time
at a specific price in the | ||||||
| 20 | event the property is not sold in accordance with
the | ||||||
| 21 | terms of a brokerage agreement to be entered into | ||||||
| 22 | between the sponsoring broker and the seller.
| ||||||
| 23 | (B) A licensee offering a guaranteed sales plan | ||||||
| 24 | shall provide the
details
and conditions of the plan in | ||||||
| 25 | writing to the party to whom the plan is
offered.
| ||||||
| 26 | (C) A licensee offering a guaranteed sales plan | ||||||
| |||||||
| |||||||
| 1 | shall provide to the
party
to whom the plan is offered | ||||||
| 2 | evidence of sufficient financial resources to
satisfy | ||||||
| 3 | the commitment to
purchase undertaken by the broker in | ||||||
| 4 | the plan.
| ||||||
| 5 | (D) Any licensee offering a guaranteed sales plan | ||||||
| 6 | shall undertake to
market the property of the seller | ||||||
| 7 | subject to the plan in the same manner in
which the | ||||||
| 8 | broker would
market any other property, unless the | ||||||
| 9 | agreement with the seller provides
otherwise.
| ||||||
| 10 | (E) The licensee cannot purchase seller's property | ||||||
| 11 | until the brokerage agreement has ended according to | ||||||
| 12 | its terms or is otherwise terminated. | ||||||
| 13 | (F) Any licensee who fails to perform on a | ||||||
| 14 | guaranteed sales plan in
strict accordance with its | ||||||
| 15 | terms shall be subject to all the penalties provided
in | ||||||
| 16 | this Act for
violations thereof and, in addition, shall | ||||||
| 17 | be subject to a civil fine payable
to the party injured | ||||||
| 18 | by the
default in an amount of up to $25,000.
| ||||||
| 19 | (30) Influencing or attempting to influence, by any | ||||||
| 20 | words or acts, a
prospective
seller, purchaser, occupant, | ||||||
| 21 | landlord, or tenant of real estate, in connection
with | ||||||
| 22 | viewing, buying, or
leasing real estate, so as to promote | ||||||
| 23 | or tend to promote the continuance
or maintenance of
| ||||||
| 24 | racially and religiously segregated housing or so as to | ||||||
| 25 | retard, obstruct, or
discourage racially
integrated | ||||||
| 26 | housing on or in any street, block, neighborhood, or | ||||||
| |||||||
| |||||||
| 1 | community.
| ||||||
| 2 | (31) Engaging in any act that constitutes a violation | ||||||
| 3 | of any provision of
Article 3 of the Illinois Human Rights | ||||||
| 4 | Act, whether or not a complaint has
been filed with or
| ||||||
| 5 | adjudicated by the Human Rights Commission.
| ||||||
| 6 | (32) Inducing any party to a contract of sale or lease | ||||||
| 7 | or brokerage
agreement to
break the contract of sale or | ||||||
| 8 | lease or brokerage agreement for the purpose of
| ||||||
| 9 | substituting, in lieu
thereof, a new contract for sale or | ||||||
| 10 | lease or brokerage agreement with a third
party.
| ||||||
| 11 | (33) Negotiating a sale, exchange, or lease of real | ||||||
| 12 | estate directly with
any person
if the licensee knows that | ||||||
| 13 | the person has an exclusive brokerage
agreement with | ||||||
| 14 | another
broker, unless specifically authorized by that | ||||||
| 15 | broker.
| ||||||
| 16 | (34) When a licensee is also an attorney, acting as the | ||||||
| 17 | attorney for
either the
buyer or the seller in the same | ||||||
| 18 | transaction in which the licensee is acting or
has acted as | ||||||
| 19 | a managing broker
or broker.
| ||||||
| 20 | (35) Advertising or offering merchandise or services | ||||||
| 21 | as free if any
conditions or
obligations necessary for | ||||||
| 22 | receiving the merchandise or services are not
disclosed in | ||||||
| 23 | the same
advertisement or offer. These conditions or | ||||||
| 24 | obligations include without
limitation the
requirement | ||||||
| 25 | that the recipient attend a promotional activity or visit a | ||||||
| 26 | real
estate site. As used in this
subdivision (35), "free" | ||||||
| |||||||
| |||||||
| 1 | includes terms such as "award", "prize", "no charge",
"free | ||||||
| 2 | of charge",
"without charge", and similar words or phrases | ||||||
| 3 | that reasonably lead a person to
believe that he or she
may | ||||||
| 4 | receive or has been selected to receive something of value, | ||||||
| 5 | without any
conditions or
obligations on the part of the | ||||||
| 6 | recipient.
| ||||||
| 7 | (36) (Blank).
| ||||||
| 8 | (37) Violating the terms of a disciplinary order
issued | ||||||
| 9 | by the Department.
| ||||||
| 10 | (38) Paying or failing to disclose compensation in | ||||||
| 11 | violation of Article 10 of this Act.
| ||||||
| 12 | (39) Requiring a party to a transaction who is not a | ||||||
| 13 | client of the
licensee
to allow the licensee to retain a | ||||||
| 14 | portion of the escrow moneys for payment of
the licensee's | ||||||
| 15 | commission or expenses as a condition for release of the | ||||||
| 16 | escrow
moneys to that party.
| ||||||
| 17 | (40) Disregarding or violating any provision of this | ||||||
| 18 | Act or the published
rules adopted
by the Department to | ||||||
| 19 | enforce this Act or aiding or abetting any individual, | ||||||
| 20 | foreign or domestic
partnership, registered limited | ||||||
| 21 | liability partnership, limited liability
company, | ||||||
| 22 | corporation, or other business entity in
disregarding any | ||||||
| 23 | provision of this Act or the published rules adopted by the | ||||||
| 24 | Department
to enforce this Act.
| ||||||
| 25 | (41) Failing to provide the minimum services required | ||||||
| 26 | by Section 15-75 of this Act when acting under an exclusive | ||||||
| |||||||
| |||||||
| 1 | brokerage agreement.
| ||||||
| 2 | (42) Habitual or excessive use or addiction to alcohol, | ||||||
| 3 | narcotics, stimulants, or any other chemical agent or drug | ||||||
| 4 | that results in a managing broker, broker, or leasing | ||||||
| 5 | agent's inability to practice with reasonable skill or | ||||||
| 6 | safety. | ||||||
| 7 | (43) Enabling, aiding, or abetting an auctioneer, as | ||||||
| 8 | defined in the Auction License Act, to conduct a real | ||||||
| 9 | estate auction in a manner that is in violation of this | ||||||
| 10 | Act. | ||||||
| 11 | (44) Permitting any leasing agent or temporary leasing | ||||||
| 12 | agent permit holder to engage in activities that require a | ||||||
| 13 | broker's or managing broker's license. | ||||||
| 14 | (b) The Department may refuse to issue or renew or may | ||||||
| 15 | suspend the license of any person who fails to file a return, | ||||||
| 16 | pay the tax, penalty or interest shown in a filed return, or | ||||||
| 17 | pay any final assessment of tax, penalty, or interest, as | ||||||
| 18 | required by any tax Act administered by the Department of | ||||||
| 19 | Revenue, until such time as the requirements of that tax Act | ||||||
| 20 | are satisfied in accordance with subsection (g) of Section | ||||||
| 21 | 2105-15 of the Civil Administrative Code of Illinois. | ||||||
| 22 | (c) (Blank). | ||||||
| 23 | (d) In cases where the Department of Healthcare and Family | ||||||
| 24 | Services (formerly Department of Public Aid) has previously | ||||||
| 25 | determined that a licensee or a potential licensee is more than | ||||||
| 26 | 30 days delinquent in the payment of child support and has | ||||||
| |||||||
| |||||||
| 1 | subsequently certified the delinquency to the Department may | ||||||
| 2 | refuse to issue or renew or may revoke or suspend that person's | ||||||
| 3 | license or may take other disciplinary action against that | ||||||
| 4 | person based solely upon the certification of delinquency made | ||||||
| 5 | by the Department of Healthcare and Family Services in | ||||||
| 6 | accordance with item (5) of subsection (a) of Section 2105-15 | ||||||
| 7 | of the Civil Administrative Code of Illinois. | ||||||
| 8 | (e) In enforcing this Section, the Department or Board upon | ||||||
| 9 | a showing of a possible violation may compel an individual | ||||||
| 10 | licensed to practice under this Act, or who has applied for | ||||||
| 11 | licensure under this Act, to submit to a mental or physical | ||||||
| 12 | examination, or both, as required by and at the expense of the | ||||||
| 13 | Department. The Department or Board may order the examining | ||||||
| 14 | physician to present testimony concerning the mental or | ||||||
| 15 | physical examination of the licensee or applicant. No | ||||||
| 16 | information shall be excluded by reason of any common law or | ||||||
| 17 | statutory privilege relating to communications between the | ||||||
| 18 | licensee or applicant and the examining physician. The | ||||||
| 19 | examining physicians shall be specifically designated by the | ||||||
| 20 | Board or Department. The individual to be examined may have, at | ||||||
| 21 | his or her own expense, another physician of his or her choice | ||||||
| 22 | present during all aspects of this examination. Failure of an | ||||||
| 23 | individual to submit to a mental or physical examination, when | ||||||
| 24 | directed, shall be grounds for suspension of his or her license | ||||||
| 25 | until the individual submits to the examination if the | ||||||
| 26 | Department finds, after notice and hearing, that the refusal to | ||||||
| |||||||
| |||||||
| 1 | submit to the examination was without reasonable cause. | ||||||
| 2 | If the Department or Board finds an individual unable to | ||||||
| 3 | practice because of the reasons set forth in this Section, the | ||||||
| 4 | Department or Board may require that individual to submit to | ||||||
| 5 | care, counseling, or treatment by physicians approved or | ||||||
| 6 | designated by the Department or Board, as a condition, term, or | ||||||
| 7 | restriction for continued, reinstated, or renewed licensure to | ||||||
| 8 | practice; or, in lieu of care, counseling, or treatment, the | ||||||
| 9 | Department may file, or the Board may recommend to the | ||||||
| 10 | Department to file, a complaint to immediately suspend, revoke, | ||||||
| 11 | or otherwise discipline the license of the individual. An | ||||||
| 12 | individual whose license was granted, continued, reinstated, | ||||||
| 13 | renewed, disciplined or supervised subject to such terms, | ||||||
| 14 | conditions, or restrictions, and who fails to comply with such | ||||||
| 15 | terms, conditions, or restrictions, shall be referred to the | ||||||
| 16 | Secretary for a determination as to whether the individual | ||||||
| 17 | shall have his or her license suspended immediately, pending a | ||||||
| 18 | hearing by the Department. | ||||||
| 19 | In instances in which the Secretary immediately suspends a | ||||||
| 20 | person's license under this Section, a hearing on that person's | ||||||
| 21 | license must be convened by the Department within 30 days after | ||||||
| 22 | the suspension and completed without appreciable delay. The | ||||||
| 23 | Department and Board shall have the authority to review the | ||||||
| 24 | subject individual's record of treatment and counseling | ||||||
| 25 | regarding the impairment to the extent permitted by applicable | ||||||
| 26 | federal statutes and regulations safeguarding the | ||||||
| |||||||
| |||||||
| 1 | confidentiality of medical records. | ||||||
| 2 | An individual licensed under this Act and affected under | ||||||
| 3 | this Section shall be afforded an opportunity to demonstrate to | ||||||
| 4 | the Department or Board that he or she can resume practice in | ||||||
| 5 | compliance with acceptable and prevailing standards under the | ||||||
| 6 | provisions of his or her license. | ||||||
| 7 | (Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18; | ||||||
| 8 | 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff. | ||||||
| 9 | 1-1-19; 100-863, eff. 8-14-18; 100-872, eff. 8-14-18; revised | ||||||
| 10 | 10-22-18.)
| ||||||
| 11 | Section 100. The Code of Criminal Procedure of 1963 is | ||||||
| 12 | amended by changing Section 110-17 as follows:
| ||||||
| 13 | (725 ILCS 5/110-17) (from Ch. 38, par. 110-17)
| ||||||
| 14 | Sec. 110-17. Unclaimed bail deposits. Any sum
of money | ||||||
| 15 | deposited by any person to secure his or her release from | ||||||
| 16 | custody which
remains unclaimed by the person entitled to its | ||||||
| 17 | return for 3
years after the conditions of the bail bond have | ||||||
| 18 | been performed
and the accused has been discharged from all | ||||||
| 19 | obligations in the
cause shall be presumed to be abandoned and | ||||||
| 20 | subject to disposition under the Revised Uniform Disposition of | ||||||
| 21 | Unclaimed Property Act.
| ||||||
| 22 | (a) (Blank).
| ||||||
| 23 | (b) (Blank).
| ||||||
| 24 | (c) (Blank).
| ||||||
| |||||||
| |||||||
| 1 | (d) (Blank).
| ||||||
| 2 | (e) (Blank).
| ||||||
| 3 | (Source: P.A. 100-22, eff. 1-1-18; 100-929, eff. 1-1-19; | ||||||
| 4 | revised 10-3-18.)
| ||||||
| 5 | Section 105. The Probate Act of 1975 is amended by changing | ||||||
| 6 | Sections 2-1 and 2-2 as follows:
| ||||||
| 7 | (755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
| ||||||
| 8 | Sec. 2-1. Rules of descent and distribution. The intestate | ||||||
| 9 | real and
personal estate of a resident decedent and the | ||||||
| 10 | intestate real estate in
this State of a nonresident decedent, | ||||||
| 11 | after all just claims against his
estate are fully paid, | ||||||
| 12 | descends and shall be distributed as follows:
| ||||||
| 13 | (a) If there is a surviving spouse and also a descendant of | ||||||
| 14 | the
decedent: 1/2 of the entire estate to the surviving spouse | ||||||
| 15 | and 1/2 to
the decedent's descendants per stirpes.
| ||||||
| 16 | (b) If there is no surviving spouse but a descendant of the
| ||||||
| 17 | decedent: the entire estate to the decedent's descendants per | ||||||
| 18 | stirpes.
| ||||||
| 19 | (c) If there is a surviving spouse but no descendant of the
| ||||||
| 20 | decedent: the entire estate to the surviving spouse.
| ||||||
| 21 | (d) If there is no surviving spouse or descendant but a | ||||||
| 22 | parent,
brother, sister or descendant of a brother or sister of | ||||||
| 23 | the decedent:
the entire estate to the parents, brothers and | ||||||
| 24 | sisters of the decedent
in equal parts, allowing to the | ||||||
| |||||||
| |||||||
| 1 | surviving parent if one is dead a double
portion and to the | ||||||
| 2 | descendants of a deceased brother or sister per
stirpes the | ||||||
| 3 | portion which the deceased brother or sister would have
taken | ||||||
| 4 | if living.
| ||||||
| 5 | (e) If there is no surviving spouse, descendant, parent, | ||||||
| 6 | brother,
sister or descendant of a brother or sister of the | ||||||
| 7 | decedent but a
grandparent or descendant of a grandparent of | ||||||
| 8 | the decedent: (1) 1/2 of
the entire estate to the decedent's | ||||||
| 9 | maternal grandparents in equal parts
or to the survivor of | ||||||
| 10 | them, or if there is none surviving, to their
descendants per | ||||||
| 11 | stirpes, and (2) 1/2 of the entire estate to the
decedent's | ||||||
| 12 | paternal grandparents in equal parts or to the survivor of
| ||||||
| 13 | them, or if there is none surviving, to their descendants per | ||||||
| 14 | stirpes.
If there is no surviving paternal grandparent or | ||||||
| 15 | descendant of a
paternal grandparent, but a maternal | ||||||
| 16 | grandparent or descendant of a
maternal grandparent of the | ||||||
| 17 | decedent: the entire estate to the
decedent's maternal | ||||||
| 18 | grandparents in equal parts or to the survivor of
them, or if | ||||||
| 19 | there is none surviving, to their descendants per stirpes.
If | ||||||
| 20 | there is no surviving maternal grandparent or descendant of a
| ||||||
| 21 | maternal grandparent, but a paternal grandparent or descendant | ||||||
| 22 | of a
paternal grandparent of the decedent: the entire estate to | ||||||
| 23 | the
decedent's paternal grandparents in equal parts or to the | ||||||
| 24 | survivor of
them, or if there is none surviving, to their | ||||||
| 25 | descendants per stirpes.
| ||||||
| 26 | (f) If there is no surviving spouse, descendant, parent, | ||||||
| |||||||
| |||||||
| 1 | brother,
sister, descendant of a brother or sister or | ||||||
| 2 | grandparent or descendant
of a grandparent of the decedent: (1) | ||||||
| 3 | 1/2 of the entire estate to the
decedent's maternal | ||||||
| 4 | great-grandparents in equal parts or to the survivor
of them, | ||||||
| 5 | or if there is none surviving, to their descendants per
| ||||||
| 6 | stirpes, and (2) 1/2 of the entire estate to the decedent's | ||||||
| 7 | paternal
great-grandparents in equal parts or to the survivor | ||||||
| 8 | of them, or if
there is none surviving, to their descendants | ||||||
| 9 | per stirpes. If there is
no surviving paternal | ||||||
| 10 | great-grandparent or descendant of a paternal
| ||||||
| 11 | great-grandparent, but a maternal great-grandparent or | ||||||
| 12 | descendant of a
maternal great-grandparent of the decedent: the | ||||||
| 13 | entire estate to the
decedent's maternal great-grandparents in | ||||||
| 14 | equal parts or to the survivor
of them, or if there is none | ||||||
| 15 | surviving, to their descendants per
stirpes. If there is no | ||||||
| 16 | surviving maternal great-grandparent or
descendant of a | ||||||
| 17 | maternal great-grandparent, but a paternal
great-grandparent | ||||||
| 18 | or descendant of a paternal great-grandparent of the
decedent: | ||||||
| 19 | the entire estate to the decedent's paternal
| ||||||
| 20 | great-grandparents in equal parts or to the survivor of them, | ||||||
| 21 | or if
there is none surviving, to their descendants per | ||||||
| 22 | stirpes.
| ||||||
| 23 | (g) If there is no surviving spouse, descendant, parent, | ||||||
| 24 | brother,
sister, descendant of a brother or sister, | ||||||
| 25 | grandparent, descendant of a
grandparent, great-grandparent or | ||||||
| 26 | descendant of a great-grandparent of
the decedent: the entire | ||||||
| |||||||
| |||||||
| 1 | estate in equal parts to the nearest kindred of
the decedent in | ||||||
| 2 | equal degree (computing by the rules of the civil law)
and | ||||||
| 3 | without representation.
| ||||||
| 4 | (h) If there is no surviving spouse and no known kindred of | ||||||
| 5 | the
decedent: the real estate escheats to the county in which | ||||||
| 6 | it is
located; the personal estate physically located within | ||||||
| 7 | this State and
the personal estate physically located or held | ||||||
| 8 | outside this State which
is the subject of ancillary | ||||||
| 9 | administration of an estate being
administered within this | ||||||
| 10 | State escheats to the county of which the
decedent was a | ||||||
| 11 | resident, or, if the decedent was not a resident of this
State, | ||||||
| 12 | to the county in which it is located; all other personal | ||||||
| 13 | property
of the decedent of every class and character, wherever | ||||||
| 14 | situate, or the
proceeds thereof, shall escheat to this State | ||||||
| 15 | and be delivered to the
State Treasurer
pursuant to the Revised | ||||||
| 16 | Uniform Disposition of Unclaimed Property Act.
| ||||||
| 17 | In no case is there any distinction between the kindred of | ||||||
| 18 | the whole
and the half blood.
| ||||||
| 19 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 20 | (755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
| ||||||
| 21 | Sec. 2-2. Children born out of wedlock. The intestate real | ||||||
| 22 | and personal estate of
a resident decedent who was a child born | ||||||
| 23 | out of wedlock at the time of death and the
intestate real | ||||||
| 24 | estate in this State of a nonresident decedent who was a child | ||||||
| 25 | born out of wedlock at the time of death, after all just claims | ||||||
| |||||||
| |||||||
| 1 | against his estate are
fully paid, descends and shall be | ||||||
| 2 | distributed as provided in Section 2-1,
subject to Section | ||||||
| 3 | 2-6.5 of this Act, if both parents are eligible parents. As
| ||||||
| 4 | used in this Section, "eligible parent" means a parent of the | ||||||
| 5 | decedent who,
during the decedent's lifetime, acknowledged the | ||||||
| 6 | decedent as the parent's
child, established a parental | ||||||
| 7 | relationship with the decedent, and supported the
decedent as | ||||||
| 8 | the parent's child. "Eligible parents" who are in arrears of in
| ||||||
| 9 | excess of one year's child support obligations shall not | ||||||
| 10 | receive any property
benefit or other interest of the decedent | ||||||
| 11 | unless and until a court of competent
jurisdiction makes a | ||||||
| 12 | determination as to the effect on the deceased of the
arrearage | ||||||
| 13 | and allows a reduced benefit. In no event shall the reduction | ||||||
| 14 | of
the benefit or other interest be less than the amount of | ||||||
| 15 | child support owed for
the support of the decedent at the time | ||||||
| 16 | of death. The court's considerations
shall include but are not | ||||||
| 17 | limited to the considerations in subsections (1)
through (3) of | ||||||
| 18 | Section 2-6.5 of this Act.
| ||||||
| 19 | If neither parent is an eligible parent, the intestate real
| ||||||
| 20 | and personal estate of a resident decedent who was a child born | ||||||
| 21 | out of wedlock at the time of
death and the intestate real | ||||||
| 22 | estate in this State of a nonresident decedent who
was a child | ||||||
| 23 | born out of wedlock at the time of death, after all just claims | ||||||
| 24 | against his or her
estate are fully paid, descends and shall be | ||||||
| 25 | distributed as provided in
Section 2-1, but the parents of the | ||||||
| 26 | decedent shall be treated as having
predeceased the decedent.
| ||||||
| |||||||
| |||||||
| 1 | If only one parent is an eligible parent, the intestate | ||||||
| 2 | real and personal
estate of a resident decedent who was a child | ||||||
| 3 | born out of wedlock at the time of death and the
intestate real | ||||||
| 4 | estate in this State of a nonresident decedent who was a child | ||||||
| 5 | born out of wedlock at the time of death, after all just claims | ||||||
| 6 | against his or her
estate are fully paid, subject to Section | ||||||
| 7 | 2-6.5 of this Act, descends and shall
be distributed as | ||||||
| 8 | follows:
| ||||||
| 9 | (a) If there is a surviving spouse and also a descendant of | ||||||
| 10 | the
decedent: 1/2 of the entire estate to the surviving spouse | ||||||
| 11 | and 1/2 to
the decedent's descendants per stirpes.
| ||||||
| 12 | (b) If there is no surviving spouse but a descendant of the
| ||||||
| 13 | decedent: the entire estate to the decedent's descendants per | ||||||
| 14 | stirpes.
| ||||||
| 15 | (c) If there is a surviving spouse but no descendant of the
| ||||||
| 16 | decedent: the entire estate to the surviving spouse.
| ||||||
| 17 | (d) If there is no surviving spouse or descendant but the | ||||||
| 18 | eligible parent or
a descendant of the eligible parent of the | ||||||
| 19 | decedent: the entire estate to the
eligible parent and the | ||||||
| 20 | eligible parent's descendants, allowing 1/2 to the
eligible | ||||||
| 21 | parent and 1/2 to the eligible parent's descendants per | ||||||
| 22 | stirpes.
| ||||||
| 23 | (e) If there is no surviving spouse, descendant, eligible | ||||||
| 24 | parent, or
descendant of the eligible parent of the decedent, | ||||||
| 25 | but a grandparent on the
eligible parent's side of the family | ||||||
| 26 | or descendant of such grandparent of the
decedent: the entire | ||||||
| |||||||
| |||||||
| 1 | estate to the decedent's grandparents on the eligible
parent's | ||||||
| 2 | side of the family in equal parts, or to the survivor of them, | ||||||
| 3 | or if
there is none surviving, to their descendants per | ||||||
| 4 | stirpes.
| ||||||
| 5 | (f) If there is no surviving spouse, descendant, eligible | ||||||
| 6 | parent, descendant
of the eligible parent, grandparent on the | ||||||
| 7 | eligible parent's side of the
family, or descendant of such | ||||||
| 8 | grandparent of the decedent: the entire estate
to the | ||||||
| 9 | decedent's great-grandparents on the eligible parent's side of | ||||||
| 10 | the
family in equal parts or to the survivor of them, or if | ||||||
| 11 | there is none
surviving, to their descendants per stirpes.
| ||||||
| 12 | (g) If there is no surviving spouse, descendant, eligible | ||||||
| 13 | parent, descendant
of the eligible parent, grandparent on the
| ||||||
| 14 | eligible parent's side of the family, descendant of such
| ||||||
| 15 | grandparent, great-grandparent on the eligible parent's side | ||||||
| 16 | of
the family, or descendant of such great-grandparent of the | ||||||
| 17 | decedent: the
entire estate in equal parts to the nearest | ||||||
| 18 | kindred of the eligible parent of
the decedent in equal degree | ||||||
| 19 | (computing by the rules of the civil law) and
without | ||||||
| 20 | representation.
| ||||||
| 21 | (h) If there is no surviving spouse, descendant, or | ||||||
| 22 | eligible parent of the
decedent and no known kindred of the | ||||||
| 23 | eligible parent of the decedent: the real
estate escheats to
| ||||||
| 24 | the county in which it is located; the personal estate | ||||||
| 25 | physically
located within this State and the personal estate | ||||||
| 26 | physically located or
held outside this State which is the | ||||||
| |||||||
| |||||||
| 1 | subject of ancillary administration
within this State escheats | ||||||
| 2 | to the county of which the decedent was a
resident or, if the | ||||||
| 3 | decedent was not a resident of this State, to the
county in | ||||||
| 4 | which it is located; all other personal property of the
| ||||||
| 5 | decedent of every class and character, wherever situate, or the | ||||||
| 6 | proceeds
thereof, shall escheat to this State and be delivered | ||||||
| 7 | to the State
Treasurer of this State pursuant to the Revised | ||||||
| 8 | Uniform Disposition of Unclaimed Property Act.
| ||||||
| 9 | For purposes of inheritance, the changes made by this | ||||||
| 10 | amendatory Act of
1998 apply to all decedents who die on or | ||||||
| 11 | after the effective date of this
amendatory Act of 1998. For | ||||||
| 12 | the purpose of determining the property rights of
any person | ||||||
| 13 | under any instrument, the changes made by this amendatory Act | ||||||
| 14 | of
1998 apply to all instruments executed on or after the | ||||||
| 15 | effective date of this
amendatory Act of 1998.
| ||||||
| 16 | A child born out of wedlock is heir of his mother and of | ||||||
| 17 | any maternal
ancestor and of any person from whom his mother | ||||||
| 18 | might have inherited, if
living; and the descendants of a | ||||||
| 19 | person who was a child born out of wedlock shall represent
such | ||||||
| 20 | person and take by descent any estate which the parent would | ||||||
| 21 | have
taken, if living. If a decedent has acknowledged paternity | ||||||
| 22 | of a child born out of wedlock or if during his lifetime or | ||||||
| 23 | after his death a
decedent has been adjudged to be the father | ||||||
| 24 | of a child born out of wedlock,
that person is heir of his | ||||||
| 25 | father and of any paternal ancestor and of
any person from whom | ||||||
| 26 | his father might have inherited, if living; and
the descendants | ||||||
| |||||||
| |||||||
| 1 | of a person who was a child born out of wedlock shall represent | ||||||
| 2 | that person
and take by descent any estate which the parent | ||||||
| 3 | would have taken, if
living. If during his lifetime the | ||||||
| 4 | decedent was adjudged to be the
father of a child born out of | ||||||
| 5 | wedlock by a court of competent jurisdiction,
an authenticated | ||||||
| 6 | copy of the judgment is sufficient proof of the
paternity; but | ||||||
| 7 | in all other cases paternity must be proved by clear and
| ||||||
| 8 | convincing evidence. A person who was a child born out of | ||||||
| 9 | wedlock whose parents
intermarry and who is acknowledged by the | ||||||
| 10 | father as the father's child
is a lawful child of the father.
| ||||||
| 11 | After a child born out of wedlock is adopted, that person's | ||||||
| 12 | relationship to his or
her adopting and natural parents shall | ||||||
| 13 | be governed by Section 2-4 of this
Act. For purposes of | ||||||
| 14 | inheritance, the changes made by this amendatory Act of
1997 | ||||||
| 15 | apply to all decedents who die on or after January 1, 1998. For | ||||||
| 16 | the
purpose of determining the property rights of any person | ||||||
| 17 | under any instrument,
the changes made by this amendatory Act | ||||||
| 18 | of 1997 apply to all instruments
executed on or after January | ||||||
| 19 | 1, 1998.
| ||||||
| 20 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 21 | Section 110. The Sale of Unclaimed Property Act is amended | ||||||
| 22 | by changing Section 3 as follows:
| ||||||
| 23 | (770 ILCS 90/3) (from Ch. 141, par. 3)
| ||||||
| 24 | Sec. 3.
All persons other than common carriers having a | ||||||
| |||||||
| |||||||
| 1 | lien on personal
property, by virtue of the Innkeepers Lien Act | ||||||
| 2 | or for more than $2,000 by
virtue of the Labor and Storage Lien | ||||||
| 3 | Act may enforce the lien by a sale of
the property, on giving | ||||||
| 4 | to the owner thereof, if he and his residence be
known to the | ||||||
| 5 | person having such lien, 30 days' notice by certified mail, in
| ||||||
| 6 | writing of the time and place of such sale, and if the owner or | ||||||
| 7 | his place
of residence be unknown to the person having such | ||||||
| 8 | lien, then upon his
filing his affidavit to that effect with | ||||||
| 9 | the clerk of the circuit court in
the county where such | ||||||
| 10 | property is situated; notice of the sale may be given
by | ||||||
| 11 | publishing the same once in each week for 3 successive weeks in | ||||||
| 12 | some
newspaper of general circulation published in the county, | ||||||
| 13 | and out of the
proceeds of the sale all costs and charges for | ||||||
| 14 | advertising and making the
same, and the amount of the lien | ||||||
| 15 | shall be paid, and the surplus, if any,
shall be paid to the | ||||||
| 16 | owner of the property or, if not claimed by said
owner, such | ||||||
| 17 | surplus, if any, shall be disposed under the Revised Uniform | ||||||
| 18 | Disposition of Unclaimed Property Act. All sales pursuant to | ||||||
| 19 | this Section must be
public and conducted in a commercially | ||||||
| 20 | reasonable manner so as to maximize
the net proceeds of the | ||||||
| 21 | sale. Conformity to the requirements of this Act
shall be a | ||||||
| 22 | perpetual bar to any action against such lienor by any person
| ||||||
| 23 | for the recovery of such chattels or the value thereof or any | ||||||
| 24 | damages
growing out of the failure of such person to receive | ||||||
| 25 | such chattels.
| ||||||
| 26 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | Section 115. The Business Corporation Act of 1983 is | ||||||
| 2 | amended by changing Section 12.70 as follows:
| ||||||
| 3 | (805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
| ||||||
| 4 | Sec. 12.70. Deposit of amount due certain shareholders. | ||||||
| 5 | Upon the distribution of the assets of a corporation among its
| ||||||
| 6 | shareholders, the distributive portion to which a shareholder | ||||||
| 7 | would be
entitled who is unknown or can not cannot be found, or | ||||||
| 8 | who is under disability and
there is no person legally | ||||||
| 9 | competent to receive such distributive portion,
shall be | ||||||
| 10 | presumed abandoned and reported and delivered to the State
| ||||||
| 11 | Treasurer and become subject to the provision of the Revised | ||||||
| 12 | Uniform
Disposition of Unclaimed Property Act. In the event | ||||||
| 13 | such distribution is
made other than in cash, such distributive | ||||||
| 14 | portion of the assets shall be
reduced to cash before being so | ||||||
| 15 | reported and delivered.
| ||||||
| 16 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 17 | Section 120. The General Not For Profit Corporation Act of | ||||||
| 18 | 1986 is amended by changing Section 112.70 as follows:
| ||||||
| 19 | (805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
| ||||||
| 20 | Sec. 112.70. Deposit of amount due. Upon the
distribution | ||||||
| 21 | of the assets of a corporation, the
distributive portion to | ||||||
| 22 | which a person would be entitled who
is unknown or cannot be | ||||||
| |||||||
| |||||||
| 1 | found, or who is under disability
and there is no person | ||||||
| 2 | legally competent to receive such
distributive portion, shall | ||||||
| 3 | be presumed abandoned and
reported and delivered to the State | ||||||
| 4 | Treasurer and become subject to the provisions of the Revised
| ||||||
| 5 | Uniform Disposition of Unclaimed Property Act. In the event
| ||||||
| 6 | such distribution is made other than in cash, such
distributive | ||||||
| 7 | portion of the assets shall be reduced to cash
before being so | ||||||
| 8 | reported and delivered.
| ||||||
| 9 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 10 | Section 125. The Illinois Income Tax Act is amended by | ||||||
| 11 | changing Sections 201, 203, 204, 208, 212, 901, 1501, 1102, | ||||||
| 12 | 1103, and 1105 as follows:
| ||||||
| 13 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
| 14 | Sec. 201. Tax imposed. | ||||||
| 15 | (a) In general. A tax measured by net income is hereby | ||||||
| 16 | imposed on every
individual, corporation, trust and estate for | ||||||
| 17 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
| 18 | of earning or receiving income in or
as a resident of this | ||||||
| 19 | State. Such tax shall be in addition to all other
occupation or | ||||||
| 20 | privilege taxes imposed by this State or by any municipal
| ||||||
| 21 | corporation or political subdivision thereof. | ||||||
| 22 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
| 23 | Section shall be
determined as follows, except as adjusted by | ||||||
| 24 | subsection (d-1): | ||||||
| |||||||
| |||||||
| 1 | (1) In the case of an individual, trust or estate, for | ||||||
| 2 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
| 3 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
| 4 | year. | ||||||
| 5 | (2) In the case of an individual, trust or estate, for | ||||||
| 6 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
| 7 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
| 8 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
| 9 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
| 10 | 3% of the
taxpayer's net income for the period after June | ||||||
| 11 | 30, 1989, as calculated
under Section 202.3. | ||||||
| 12 | (3) In the case of an individual, trust or estate, for | ||||||
| 13 | taxable years
beginning after June 30, 1989, and ending | ||||||
| 14 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
| 15 | taxpayer's net
income for the taxable year. | ||||||
| 16 | (4) In the case of an individual, trust, or estate, for | ||||||
| 17 | taxable years beginning prior to January 1, 2011, and | ||||||
| 18 | ending after December 31, 2010, an amount equal to the sum | ||||||
| 19 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
| 20 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
| 21 | (ii) 5% of the taxpayer's net income for the period after | ||||||
| 22 | December 31, 2010, as calculated under Section 202.5. | ||||||
| 23 | (5) In the case of an individual, trust, or estate, for | ||||||
| 24 | taxable years beginning on or after January 1, 2011, and | ||||||
| 25 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
| 26 | the taxpayer's net income for the taxable year. | ||||||
| |||||||
| |||||||
| 1 | (5.1) In the case of an individual, trust, or estate, | ||||||
| 2 | for taxable years beginning prior to January 1, 2015, and | ||||||
| 3 | ending after December 31, 2014, an amount equal to the sum | ||||||
| 4 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
| 5 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
| 6 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
| 7 | after December 31, 2014, as calculated under Section 202.5. | ||||||
| 8 | (5.2) In the case of an individual, trust, or estate, | ||||||
| 9 | for taxable years beginning on or after January 1, 2015, | ||||||
| 10 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
| 11 | of the taxpayer's net income for the taxable year. | ||||||
| 12 | (5.3) In the case of an individual, trust, or estate, | ||||||
| 13 | for taxable years beginning prior to July 1, 2017, and | ||||||
| 14 | ending after June 30, 2017, an amount equal to the sum of | ||||||
| 15 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
| 16 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
| 17 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
| 18 | after June 30, 2017, as calculated under Section 202.5. | ||||||
| 19 | (5.4) In the case of an individual, trust, or estate, | ||||||
| 20 | for taxable years beginning on or after July 1, 2017 and | ||||||
| 21 | ending prior to January 1, 2019, an amount equal to 4.95% | ||||||
| 22 | of the taxpayer's net income for the taxable year. | ||||||
| 23 | (5.5) In the case of an individual, trust, or estate, | ||||||
| 24 | for taxable years beginning prior to January 1, 2019, and | ||||||
| 25 | ending after December 31, 2018, an amount equal to the sum | ||||||
| 26 | of (i) 4.95% of the taxpayer's net income for the period | ||||||
| |||||||
| |||||||
| 1 | prior to January 1, 2019, as calculated under Section | ||||||
| 2 | 202.5, and (ii) 3.75% of the taxpayer's net income for the | ||||||
| 3 | period after December 31, 2018, as calculated under Section | ||||||
| 4 | 202.5. | ||||||
| 5 | (5.6) In the case of an individual, trust, or estate, | ||||||
| 6 | for taxable years beginning on or after January 1, 2019 and | ||||||
| 7 | ending prior to January 1, 2025, an amount equal to 3.75% | ||||||
| 8 | of the taxpayer's net income for the taxable year. | ||||||
| 9 | (5.7) In the case of an individual, trust, or estate, | ||||||
| 10 | for taxable years beginning prior to January 1, 2025, and | ||||||
| 11 | ending after December 31, 2024, an amount equal to the sum | ||||||
| 12 | of (i) 3.75% of the taxpayer's net income for the period | ||||||
| 13 | prior to January 1, 2025, as calculated under Section | ||||||
| 14 | 202.5, and (ii) 3.25% of the taxpayer's net income for the | ||||||
| 15 | period after December 31, 2024, as calculated under Section | ||||||
| 16 | 202.5. | ||||||
| 17 | (5.8) In the case of an individual, trust, or estate, | ||||||
| 18 | for taxable years beginning on or after January 1, 2025, an | ||||||
| 19 | amount equal to 3.25% of the taxpayer's net income for the | ||||||
| 20 | taxable year. | ||||||
| 21 | (6) In the case of a corporation, for taxable years
| ||||||
| 22 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
| 23 | taxpayer's net income for the taxable year. | ||||||
| 24 | (7) In the case of a corporation, for taxable years | ||||||
| 25 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
| 26 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
| 2 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
| 3 | taxpayer's net
income for the period after June 30, 1989, | ||||||
| 4 | as calculated under Section
202.3. | ||||||
| 5 | (8) In the case of a corporation, for taxable years | ||||||
| 6 | beginning after
June 30, 1989, and ending prior to January | ||||||
| 7 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
| 8 | income for the
taxable year. | ||||||
| 9 | (9) In the case of a corporation, for taxable years | ||||||
| 10 | beginning prior to January 1, 2011, and ending after | ||||||
| 11 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
| 12 | of the taxpayer's net income for the period prior to | ||||||
| 13 | January 1, 2011, as calculated under Section 202.5, and | ||||||
| 14 | (ii) 7% of the taxpayer's net income for the period after | ||||||
| 15 | December 31, 2010, as calculated under Section 202.5. | ||||||
| 16 | (10) In the case of a corporation, for taxable years | ||||||
| 17 | beginning on or after January 1, 2011, and ending prior to | ||||||
| 18 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
| 19 | net income for the taxable year. | ||||||
| 20 | (11) In the case of a corporation, for taxable years | ||||||
| 21 | beginning prior to January 1, 2015, and ending after | ||||||
| 22 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
| 23 | the taxpayer's net income for the period prior to January | ||||||
| 24 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
| 25 | of the taxpayer's net income for the period after December | ||||||
| 26 | 31, 2014, as calculated under Section 202.5. | ||||||
| |||||||
| |||||||
| 1 | (12) In the case of a corporation, for taxable years | ||||||
| 2 | beginning on or after January 1, 2015, and ending prior to | ||||||
| 3 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
| 4 | net income for the taxable year. | ||||||
| 5 | (13) In the case of a corporation, for taxable years | ||||||
| 6 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
| 7 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
| 8 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
| 9 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
| 10 | taxpayer's net income for the period after June 30, 2017, | ||||||
| 11 | as calculated under Section 202.5. | ||||||
| 12 | (14) In the case of a corporation, for taxable years | ||||||
| 13 | beginning on or after July 1, 2017 and ending prior to | ||||||
| 14 | January 1, 2019, an amount equal to 7% of the taxpayer's | ||||||
| 15 | net income for the taxable year. | ||||||
| 16 | (15) In the case of a corporation, for taxable years | ||||||
| 17 | beginning prior to January 1, 2019 and ending after | ||||||
| 18 | December 31, 2018, an amount equal to the sum of (i) 7% of | ||||||
| 19 | the taxpayer's net income for the period prior to January | ||||||
| 20 | 1, 2019, as calculated under Section 202.5, and (ii) 5.25% | ||||||
| 21 | of the taxpayer's net income for the period after December | ||||||
| 22 | 31, 2014, as calculated under Section 202.5. | ||||||
| 23 | (16) In the case of a corporation, for taxable years | ||||||
| 24 | beginning after
January 1, 2019 and ending prior to January | ||||||
| 25 | 1, 2025, an amount equal to 5.25% of the taxpayer's net | ||||||
| 26 | income for the
taxable year. | ||||||
| |||||||
| |||||||
| 1 | (17) In the case of a corporation, for taxable years | ||||||
| 2 | beginning prior to January 1, 2025 and ending after | ||||||
| 3 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
| 4 | of the taxpayer's net income for the period prior to | ||||||
| 5 | January 1, 2025, as calculated under Section 202.5, and | ||||||
| 6 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
| 7 | December 31, 2024, as calculated under Section 202.5. | ||||||
| 8 | (18) In the case of a corporation, for taxable years | ||||||
| 9 | beginning on or after January 1, 2025, an amount equal to | ||||||
| 10 | 4.8% of the taxpayer's net income for the taxable year. | ||||||
| 11 | The rates under this subsection (b) are subject to the | ||||||
| 12 | provisions of Section 201.5. | ||||||
| 13 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
| 14 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
| 15 | income
tax, there is also hereby imposed the Personal Property | ||||||
| 16 | Tax Replacement
Income Tax measured by net income on every | ||||||
| 17 | corporation (including Subchapter
S corporations), partnership | ||||||
| 18 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
| 19 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
| 20 | income in or as a resident of this State. The Personal Property
| ||||||
| 21 | Tax Replacement Income Tax shall be in addition to the income | ||||||
| 22 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
| 23 | addition to all other
occupation or privilege taxes imposed by | ||||||
| 24 | this State or by any municipal
corporation or political | ||||||
| 25 | subdivision thereof. | ||||||
| 26 | (d) Additional Personal Property Tax Replacement Income | ||||||
| |||||||
| |||||||
| 1 | Tax Rates.
The personal property tax replacement income tax | ||||||
| 2 | imposed by this subsection
and subsection (c) of this Section | ||||||
| 3 | in the case of a corporation, other
than a Subchapter S | ||||||
| 4 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
| 5 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
| 6 | income for the taxable year, except that
beginning on January | ||||||
| 7 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
| 8 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
| 9 | partnership, trust or a Subchapter S corporation shall be an | ||||||
| 10 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
| 11 | for the taxable year. | ||||||
| 12 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
| 13 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
| 14 | Illinois Insurance Code,
whose state or country of domicile | ||||||
| 15 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
| 16 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
| 17 | are 50% or more of its total insurance
premiums as determined | ||||||
| 18 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
| 19 | that for purposes of this determination premiums from | ||||||
| 20 | reinsurance do
not include premiums from inter-affiliate | ||||||
| 21 | reinsurance arrangements),
beginning with taxable years ending | ||||||
| 22 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
| 23 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
| 24 | increased) to the rate at which the total amount of tax imposed | ||||||
| 25 | under this Act,
net of all credits allowed under this Act, | ||||||
| 26 | shall equal (i) the total amount of
tax that would be imposed | ||||||
| |||||||
| |||||||
| 1 | on the foreign insurer's net income allocable to
Illinois for | ||||||
| 2 | the taxable year by such foreign insurer's state or country of
| ||||||
| 3 | domicile if that net income were subject to all income taxes | ||||||
| 4 | and taxes
measured by net income imposed by such foreign | ||||||
| 5 | insurer's state or country of
domicile, net of all credits | ||||||
| 6 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
| 7 | income by the foreign insurer's state of domicile.
For the | ||||||
| 8 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
| 9 | a
mutual insurer under common management. | ||||||
| 10 | (1) For the purposes of subsection (d-1), in no event | ||||||
| 11 | shall the sum of the
rates of tax imposed by subsections | ||||||
| 12 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
| 13 | (A) the total amount of tax imposed on such foreign | ||||||
| 14 | insurer under
this Act for a taxable year, net of all | ||||||
| 15 | credits allowed under this Act, plus | ||||||
| 16 | (B) the privilege tax imposed by Section 409 of the | ||||||
| 17 | Illinois Insurance
Code, the fire insurance company | ||||||
| 18 | tax imposed by Section 12 of the Fire
Investigation | ||||||
| 19 | Act, and the fire department taxes imposed under | ||||||
| 20 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
| 21 | equals 1.25% for taxable years ending prior to December 31, | ||||||
| 22 | 2003, or
1.75% for taxable years ending on or after | ||||||
| 23 | December 31, 2003, of the net
taxable premiums written for | ||||||
| 24 | the taxable year,
as described by subsection (1) of Section | ||||||
| 25 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
| 26 | no event increase the rates imposed under subsections
(b) | ||||||
| |||||||
| |||||||
| 1 | and (d). | ||||||
| 2 | (2) Any reduction in the rates of tax imposed by this | ||||||
| 3 | subsection shall be
applied first against the rates imposed | ||||||
| 4 | by subsection (b) and only after the
tax imposed by | ||||||
| 5 | subsection (a) net of all credits allowed under this | ||||||
| 6 | Section
other than the credit allowed under subsection (i) | ||||||
| 7 | has been reduced to zero,
against the rates imposed by | ||||||
| 8 | subsection (d). | ||||||
| 9 | This subsection (d-1) is exempt from the provisions of | ||||||
| 10 | Section 250. | ||||||
| 11 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
| 12 | against the Personal Property Tax Replacement Income Tax for
| ||||||
| 13 | investment in qualified property. | ||||||
| 14 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
| 15 | of
the basis of qualified property placed in service during | ||||||
| 16 | the taxable year,
provided such property is placed in | ||||||
| 17 | service on or after
July 1, 1984. There shall be allowed an | ||||||
| 18 | additional credit equal
to .5% of the basis of qualified | ||||||
| 19 | property placed in service during the
taxable year, | ||||||
| 20 | provided such property is placed in service on or
after | ||||||
| 21 | July 1, 1986, and the taxpayer's base employment
within | ||||||
| 22 | Illinois has increased by 1% or more over the preceding | ||||||
| 23 | year as
determined by the taxpayer's employment records | ||||||
| 24 | filed with the
Illinois Department of Employment Security. | ||||||
| 25 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
| 26 | met the 1% growth in base employment for
the first year in | ||||||
| |||||||
| |||||||
| 1 | which they file employment records with the Illinois
| ||||||
| 2 | Department of Employment Security. The provisions added to | ||||||
| 3 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
| 4 | Act 87-895) shall be
construed as declaratory of existing | ||||||
| 5 | law and not as a new enactment. If,
in any year, the | ||||||
| 6 | increase in base employment within Illinois over the
| ||||||
| 7 | preceding year is less than 1%, the additional credit shall | ||||||
| 8 | be limited to that
percentage times a fraction, the | ||||||
| 9 | numerator of which is .5% and the denominator
of which is | ||||||
| 10 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
| 11 | not be
allowed to the extent that it would reduce a | ||||||
| 12 | taxpayer's liability in any tax
year below zero, nor may | ||||||
| 13 | any credit for qualified property be allowed for any
year | ||||||
| 14 | other than the year in which the property was placed in | ||||||
| 15 | service in
Illinois. For tax years ending on or after | ||||||
| 16 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
| 17 | credit shall be allowed for the tax year in
which the | ||||||
| 18 | property is placed in service, or, if the amount of the | ||||||
| 19 | credit
exceeds the tax liability for that year, whether it | ||||||
| 20 | exceeds the original
liability or the liability as later | ||||||
| 21 | amended, such excess may be carried
forward and applied to | ||||||
| 22 | the tax liability of the 5 taxable years following
the | ||||||
| 23 | excess credit years if the taxpayer (i) makes investments | ||||||
| 24 | which cause
the creation of a minimum of 2,000 full-time | ||||||
| 25 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
| 26 | enterprise zone established pursuant to the Illinois
| ||||||
| |||||||
| |||||||
| 1 | Enterprise Zone Act and (iii) is certified by the | ||||||
| 2 | Department of Commerce
and Community Affairs (now | ||||||
| 3 | Department of Commerce and Economic Opportunity) as | ||||||
| 4 | complying with the requirements specified in
clause (i) and | ||||||
| 5 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
| 6 | Community Affairs (now Department of Commerce and Economic | ||||||
| 7 | Opportunity) shall notify the Department of Revenue of all | ||||||
| 8 | such
certifications immediately. For tax years ending | ||||||
| 9 | after December 31, 1988,
the credit shall be allowed for | ||||||
| 10 | the tax year in which the property is
placed in service, | ||||||
| 11 | or, if the amount of the credit exceeds the tax
liability | ||||||
| 12 | for that year, whether it exceeds the original liability or | ||||||
| 13 | the
liability as later amended, such excess may be carried | ||||||
| 14 | forward and applied
to the tax liability of the 5 taxable | ||||||
| 15 | years following the excess credit
years. The credit shall | ||||||
| 16 | be applied to the earliest year for which there is
a | ||||||
| 17 | liability. If there is credit from more than one tax year | ||||||
| 18 | that is
available to offset a liability, earlier credit | ||||||
| 19 | shall be applied first. | ||||||
| 20 | (2) The term "qualified property" means property | ||||||
| 21 | which: | ||||||
| 22 | (A) is tangible, whether new or used, including | ||||||
| 23 | buildings and structural
components of buildings and | ||||||
| 24 | signs that are real property, but not including
land or | ||||||
| 25 | improvements to real property that are not a structural | ||||||
| 26 | component of a
building such as landscaping, sewer | ||||||
| |||||||
| |||||||
| 1 | lines, local access roads, fencing, parking
lots, and | ||||||
| 2 | other appurtenances; | ||||||
| 3 | (B) is depreciable pursuant to Section 167 of the | ||||||
| 4 | Internal Revenue Code,
except that "3-year property" | ||||||
| 5 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
| 6 | eligible for the credit provided by this subsection | ||||||
| 7 | (e); | ||||||
| 8 | (C) is acquired by purchase as defined in Section | ||||||
| 9 | 179(d) of
the Internal Revenue Code; | ||||||
| 10 | (D) is used in Illinois by a taxpayer who is | ||||||
| 11 | primarily engaged in
manufacturing, or in mining coal | ||||||
| 12 | or fluorite, or in retailing, or was placed in service | ||||||
| 13 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
| 14 | Zone established pursuant to the River Edge | ||||||
| 15 | Redevelopment Zone Act; and | ||||||
| 16 | (E) has not previously been used in Illinois in | ||||||
| 17 | such a manner and by
such a person as would qualify for | ||||||
| 18 | the credit provided by this subsection
(e) or | ||||||
| 19 | subsection (f). | ||||||
| 20 | (3) For purposes of this subsection (e), | ||||||
| 21 | "manufacturing" means
the material staging and production | ||||||
| 22 | of tangible personal property by
procedures commonly | ||||||
| 23 | regarded as manufacturing, processing, fabrication, or
| ||||||
| 24 | assembling which changes some existing material into new | ||||||
| 25 | shapes, new
qualities, or new combinations. For purposes of | ||||||
| 26 | this subsection
(e) the term "mining" shall have the same | ||||||
| |||||||
| |||||||
| 1 | meaning as the term "mining" in
Section 613(c) of the | ||||||
| 2 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
| 3 | the term "retailing" means the sale of tangible personal | ||||||
| 4 | property for use or consumption and not for resale, or
| ||||||
| 5 | services rendered in conjunction with the sale of tangible | ||||||
| 6 | personal property for use or consumption and not for | ||||||
| 7 | resale. For purposes of this subsection (e), "tangible | ||||||
| 8 | personal property" has the same meaning as when that term | ||||||
| 9 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
| 10 | taxable years ending after December 31, 2008, does not | ||||||
| 11 | include the generation, transmission, or distribution of | ||||||
| 12 | electricity. | ||||||
| 13 | (4) The basis of qualified property shall be the basis
| ||||||
| 14 | used to compute the depreciation deduction for federal | ||||||
| 15 | income tax purposes. | ||||||
| 16 | (5) If the basis of the property for federal income tax | ||||||
| 17 | depreciation
purposes is increased after it has been placed | ||||||
| 18 | in service in Illinois by
the taxpayer, the amount of such | ||||||
| 19 | increase shall be deemed property placed
in service on the | ||||||
| 20 | date of such increase in basis. | ||||||
| 21 | (6) The term "placed in service" shall have the same
| ||||||
| 22 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
| 23 | (7) If during any taxable year, any property ceases to
| ||||||
| 24 | be qualified property in the hands of the taxpayer within | ||||||
| 25 | 48 months after
being placed in service, or the situs of | ||||||
| 26 | any qualified property is
moved outside Illinois within 48 | ||||||
| |||||||
| |||||||
| 1 | months after being placed in service, the
Personal Property | ||||||
| 2 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
| 3 | increased. Such increase shall be determined by (i) | ||||||
| 4 | recomputing the
investment credit which would have been | ||||||
| 5 | allowed for the year in which
credit for such property was | ||||||
| 6 | originally allowed by eliminating such
property from such | ||||||
| 7 | computation and, (ii) subtracting such recomputed credit
| ||||||
| 8 | from the amount of credit previously allowed. For the | ||||||
| 9 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
| 10 | qualified property resulting
from a redetermination of the | ||||||
| 11 | purchase price shall be deemed a disposition
of qualified | ||||||
| 12 | property to the extent of such reduction. | ||||||
| 13 | (8) Unless the investment credit is extended by law, | ||||||
| 14 | the
basis of qualified property shall not include costs | ||||||
| 15 | incurred after
December 31, 2018, except for costs incurred | ||||||
| 16 | pursuant to a binding
contract entered into on or before | ||||||
| 17 | December 31, 2018. | ||||||
| 18 | (9) Each taxable year ending before December 31, 2000, | ||||||
| 19 | a partnership may
elect to pass through to its
partners the | ||||||
| 20 | credits to which the partnership is entitled under this | ||||||
| 21 | subsection
(e) for the taxable year. A partner may use the | ||||||
| 22 | credit allocated to him or her
under this paragraph only | ||||||
| 23 | against the tax imposed in subsections (c) and (d) of
this | ||||||
| 24 | Section. If the partnership makes that election, those | ||||||
| 25 | credits shall be
allocated among the partners in the | ||||||
| 26 | partnership in accordance with the rules
set forth in | ||||||
| |||||||
| |||||||
| 1 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
| 2 | promulgated under that Section, and the allocated amount of | ||||||
| 3 | the credits shall
be allowed to the partners for that | ||||||
| 4 | taxable year. The partnership shall make
this election on | ||||||
| 5 | its Personal Property Tax Replacement Income Tax return for
| ||||||
| 6 | that taxable year. The election to pass through the credits | ||||||
| 7 | shall be
irrevocable. | ||||||
| 8 | For taxable years ending on or after December 31, 2000, | ||||||
| 9 | a
partner that qualifies its
partnership for a subtraction | ||||||
| 10 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
| 11 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
| 12 | S
corporation for a subtraction under subparagraph (S) of | ||||||
| 13 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
| 14 | allowed a credit under this subsection
(e) equal to its | ||||||
| 15 | share of the credit earned under this subsection (e) during
| ||||||
| 16 | the taxable year by the partnership or Subchapter S | ||||||
| 17 | corporation, determined in
accordance with the | ||||||
| 18 | determination of income and distributive share of
income | ||||||
| 19 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
| 20 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
| 21 | of Section 250. | ||||||
| 22 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
| 23 | Redevelopment Zone. | ||||||
| 24 | (1) A taxpayer shall be allowed a credit against the | ||||||
| 25 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
| 26 | investment in qualified
property which is placed in service | ||||||
| |||||||
| |||||||
| 1 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
| 2 | Enterprise Zone Act or, for property placed in service on | ||||||
| 3 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
| 4 | established pursuant to the River Edge Redevelopment Zone | ||||||
| 5 | Act. For partners, shareholders
of Subchapter S | ||||||
| 6 | corporations, and owners of limited liability companies,
| ||||||
| 7 | if the liability company is treated as a partnership for | ||||||
| 8 | purposes of
federal and State income taxation, there shall | ||||||
| 9 | be allowed a credit under
this subsection (f) to be | ||||||
| 10 | determined in accordance with the determination
of income | ||||||
| 11 | and distributive share of income under Sections 702 and 704 | ||||||
| 12 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
| 13 | shall be .5% of the
basis for such property. The credit | ||||||
| 14 | shall be available only in the taxable
year in which the | ||||||
| 15 | property is placed in service in the Enterprise Zone or | ||||||
| 16 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
| 17 | the extent that it would reduce a taxpayer's
liability for | ||||||
| 18 | the tax imposed by subsections (a) and (b) of this Section | ||||||
| 19 | to
below zero. For tax years ending on or after December | ||||||
| 20 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
| 21 | which the property is placed in
service, or, if the amount | ||||||
| 22 | of the credit exceeds the tax liability for that
year, | ||||||
| 23 | whether it exceeds the original liability or the liability | ||||||
| 24 | as later
amended, such excess may be carried forward and | ||||||
| 25 | applied to the tax
liability of the 5 taxable years | ||||||
| 26 | following the excess credit year.
The credit shall be | ||||||
| |||||||
| |||||||
| 1 | applied to the earliest year for which there is a
| ||||||
| 2 | liability. If there is credit from more than one tax year | ||||||
| 3 | that is available
to offset a liability, the credit | ||||||
| 4 | accruing first in time shall be applied
first. | ||||||
| 5 | (2) The term qualified property means property which: | ||||||
| 6 | (A) is tangible, whether new or used, including | ||||||
| 7 | buildings and
structural components of buildings; | ||||||
| 8 | (B) is depreciable pursuant to Section 167 of the | ||||||
| 9 | Internal Revenue
Code, except that "3-year property" | ||||||
| 10 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
| 11 | eligible for the credit provided by this subsection | ||||||
| 12 | (f); | ||||||
| 13 | (C) is acquired by purchase as defined in Section | ||||||
| 14 | 179(d) of
the Internal Revenue Code; | ||||||
| 15 | (D) is used in the Enterprise Zone or River Edge | ||||||
| 16 | Redevelopment Zone by the taxpayer; and | ||||||
| 17 | (E) has not been previously used in Illinois in | ||||||
| 18 | such a manner and by
such a person as would qualify for | ||||||
| 19 | the credit provided by this subsection
(f) or | ||||||
| 20 | subsection (e). | ||||||
| 21 | (3) The basis of qualified property shall be the basis | ||||||
| 22 | used to compute
the depreciation deduction for federal | ||||||
| 23 | income tax purposes. | ||||||
| 24 | (4) If the basis of the property for federal income tax | ||||||
| 25 | depreciation
purposes is increased after it has been placed | ||||||
| 26 | in service in the Enterprise
Zone or River Edge | ||||||
| |||||||
| |||||||
| 1 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
| 2 | increase shall be deemed property
placed in service on the | ||||||
| 3 | date of such increase in basis. | ||||||
| 4 | (5) The term "placed in service" shall have the same | ||||||
| 5 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
| 6 | (6) If during any taxable year, any property ceases to | ||||||
| 7 | be qualified
property in the hands of the taxpayer within | ||||||
| 8 | 48 months after being placed
in service, or the situs of | ||||||
| 9 | any qualified property is moved outside the
Enterprise Zone | ||||||
| 10 | or River Edge Redevelopment Zone within 48 months after | ||||||
| 11 | being placed in service, the tax
imposed under subsections | ||||||
| 12 | (a) and (b) of this Section for such taxable year
shall be | ||||||
| 13 | increased. Such increase shall be determined by (i) | ||||||
| 14 | recomputing
the investment credit which would have been | ||||||
| 15 | allowed for the year in which
credit for such property was | ||||||
| 16 | originally allowed by eliminating such
property from such | ||||||
| 17 | computation, and (ii) subtracting such recomputed credit
| ||||||
| 18 | from the amount of credit previously allowed. For the | ||||||
| 19 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
| 20 | qualified property resulting
from a redetermination of the | ||||||
| 21 | purchase price shall be deemed a disposition
of qualified | ||||||
| 22 | property to the extent of such reduction. | ||||||
| 23 | (7) There shall be allowed an additional credit equal | ||||||
| 24 | to 0.5% of the basis of qualified property placed in | ||||||
| 25 | service during the taxable year in a River Edge | ||||||
| 26 | Redevelopment Zone, provided such property is placed in | ||||||
| |||||||
| |||||||
| 1 | service on or after July 1, 2006, and the taxpayer's base | ||||||
| 2 | employment within Illinois has increased by 1% or more over | ||||||
| 3 | the preceding year as determined by the taxpayer's | ||||||
| 4 | employment records filed with the Illinois Department of | ||||||
| 5 | Employment Security. Taxpayers who are new to Illinois | ||||||
| 6 | shall be deemed to have met the 1% growth in base | ||||||
| 7 | employment for the first year in which they file employment | ||||||
| 8 | records with the Illinois Department of Employment | ||||||
| 9 | Security. If, in any year, the increase in base employment | ||||||
| 10 | within Illinois over the preceding year is less than 1%, | ||||||
| 11 | the additional credit shall be limited to that percentage | ||||||
| 12 | times a fraction, the numerator of which is 0.5% and the | ||||||
| 13 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
| 14 | (g) (Blank). | ||||||
| 15 | (h) Investment credit; High Impact Business. | ||||||
| 16 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
| 17 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
| 18 | allowed a credit
against the tax imposed by subsections (a) | ||||||
| 19 | and (b) of this Section for
investment in qualified
| ||||||
| 20 | property which is placed in service by a Department of | ||||||
| 21 | Commerce and Economic Opportunity
designated High Impact | ||||||
| 22 | Business. The credit shall be .5% of the basis
for such | ||||||
| 23 | property. The credit shall not be available (i) until the | ||||||
| 24 | minimum
investments in qualified property set forth in | ||||||
| 25 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
| 26 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
| |||||||
| |||||||
| 1 | time authorized in subsection (b-5) of the Illinois
| ||||||
| 2 | Enterprise Zone Act for entities designated as High Impact | ||||||
| 3 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
| 4 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
| 5 | Act, and shall not be allowed to the extent that it would
| ||||||
| 6 | reduce a taxpayer's liability for the tax imposed by | ||||||
| 7 | subsections (a) and (b) of
this Section to below zero. The | ||||||
| 8 | credit applicable to such investments shall be
taken in the | ||||||
| 9 | taxable year in which such investments have been completed. | ||||||
| 10 | The
credit for additional investments beyond the minimum | ||||||
| 11 | investment by a designated
high impact business authorized | ||||||
| 12 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
| 13 | Enterprise Zone Act shall be available only in the taxable | ||||||
| 14 | year in
which the property is placed in service and shall | ||||||
| 15 | not be allowed to the extent
that it would reduce a | ||||||
| 16 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
| 17 | and (b) of this Section to below zero.
For tax years ending | ||||||
| 18 | on or after December 31, 1987, the credit shall be
allowed | ||||||
| 19 | for the tax year in which the property is placed in | ||||||
| 20 | service, or, if
the amount of the credit exceeds the tax | ||||||
| 21 | liability for that year, whether
it exceeds the original | ||||||
| 22 | liability or the liability as later amended, such
excess | ||||||
| 23 | may be carried forward and applied to the tax liability of | ||||||
| 24 | the 5
taxable years following the excess credit year. The | ||||||
| 25 | credit shall be
applied to the earliest year for which | ||||||
| 26 | there is a liability. If there is
credit from more than one | ||||||
| |||||||
| |||||||
| 1 | tax year that is available to offset a liability,
the | ||||||
| 2 | credit accruing first in time shall be applied first. | ||||||
| 3 | Changes made in this subdivision (h)(1) by Public Act | ||||||
| 4 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
| 5 | reflect existing law. | ||||||
| 6 | (2) The term qualified property means property which: | ||||||
| 7 | (A) is tangible, whether new or used, including | ||||||
| 8 | buildings and
structural components of buildings; | ||||||
| 9 | (B) is depreciable pursuant to Section 167 of the | ||||||
| 10 | Internal Revenue
Code, except that "3-year property" | ||||||
| 11 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
| 12 | eligible for the credit provided by this subsection | ||||||
| 13 | (h); | ||||||
| 14 | (C) is acquired by purchase as defined in Section | ||||||
| 15 | 179(d) of the
Internal Revenue Code; and | ||||||
| 16 | (D) is not eligible for the Enterprise Zone | ||||||
| 17 | Investment Credit provided
by subsection (f) of this | ||||||
| 18 | Section. | ||||||
| 19 | (3) The basis of qualified property shall be the basis | ||||||
| 20 | used to compute
the depreciation deduction for federal | ||||||
| 21 | income tax purposes. | ||||||
| 22 | (4) If the basis of the property for federal income tax | ||||||
| 23 | depreciation
purposes is increased after it has been placed | ||||||
| 24 | in service in a federally
designated Foreign Trade Zone or | ||||||
| 25 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
| 26 | such increase shall be deemed property placed in service on
| ||||||
| |||||||
| |||||||
| 1 | the date of such increase in basis. | ||||||
| 2 | (5) The term "placed in service" shall have the same | ||||||
| 3 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
| 4 | (6) If during any taxable year ending on or before | ||||||
| 5 | December 31, 1996,
any property ceases to be qualified
| ||||||
| 6 | property in the hands of the taxpayer within 48 months | ||||||
| 7 | after being placed
in service, or the situs of any | ||||||
| 8 | qualified property is moved outside
Illinois within 48 | ||||||
| 9 | months after being placed in service, the tax imposed
under | ||||||
| 10 | subsections (a) and (b) of this Section for such taxable | ||||||
| 11 | year shall
be increased. Such increase shall be determined | ||||||
| 12 | by (i) recomputing the
investment credit which would have | ||||||
| 13 | been allowed for the year in which
credit for such property | ||||||
| 14 | was originally allowed by eliminating such
property from | ||||||
| 15 | such computation, and (ii) subtracting such recomputed | ||||||
| 16 | credit
from the amount of credit previously allowed. For | ||||||
| 17 | the purposes of this
paragraph (6), a reduction of the | ||||||
| 18 | basis of qualified property resulting
from a | ||||||
| 19 | redetermination of the purchase price shall be deemed a | ||||||
| 20 | disposition
of qualified property to the extent of such | ||||||
| 21 | reduction. | ||||||
| 22 | (7) Beginning with tax years ending after December 31, | ||||||
| 23 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
| 24 | subsection (h) and thereby is
granted a tax abatement and | ||||||
| 25 | the taxpayer relocates its entire facility in
violation of | ||||||
| 26 | the explicit terms and length of the contract under Section
| ||||||
| |||||||
| |||||||
| 1 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
| 2 | subsections
(a) and (b) of this Section shall be increased | ||||||
| 3 | for the taxable year
in which the taxpayer relocated its | ||||||
| 4 | facility by an amount equal to the
amount of credit | ||||||
| 5 | received by the taxpayer under this subsection (h). | ||||||
| 6 | (i) Credit for Personal Property Tax Replacement Income | ||||||
| 7 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
| 8 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
| 9 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
| 10 | (d) of this Section. This credit shall be computed by | ||||||
| 11 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
| 12 | Section by a fraction, the numerator
of which is base income | ||||||
| 13 | allocable to Illinois and the denominator of which is
Illinois | ||||||
| 14 | base income, and further multiplying the product by the tax | ||||||
| 15 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
| 16 | Any credit earned on or after December 31, 1986 under
this | ||||||
| 17 | subsection which is unused in the year
the credit is computed | ||||||
| 18 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
| 19 | and (b) for that year (whether it exceeds the original
| ||||||
| 20 | liability or the liability as later amended) may be carried | ||||||
| 21 | forward and
applied to the tax liability imposed by subsections | ||||||
| 22 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
| 23 | year, provided that no credit may
be carried forward to any | ||||||
| 24 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
| 25 | applied first to the earliest year for which there is a | ||||||
| 26 | liability. If
there is a credit under this subsection from more | ||||||
| |||||||
| |||||||
| 1 | than one tax year that is
available to offset a liability the | ||||||
| 2 | earliest credit arising under this
subsection shall be applied | ||||||
| 3 | first. | ||||||
| 4 | If, during any taxable year ending on or after December 31, | ||||||
| 5 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
| 6 | Section for which a taxpayer
has claimed a credit under this | ||||||
| 7 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
| 8 | shall also be reduced. Such reduction shall be
determined by | ||||||
| 9 | recomputing the credit to take into account the reduced tax
| ||||||
| 10 | imposed by subsections (c) and (d). If any portion of the
| ||||||
| 11 | reduced amount of credit has been carried to a different | ||||||
| 12 | taxable year, an
amended return shall be filed for such taxable | ||||||
| 13 | year to reduce the amount of
credit claimed. | ||||||
| 14 | (j) Training expense credit. Beginning with tax years | ||||||
| 15 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
| 16 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
| 17 | imposed by subsections (a) and (b) under this Section
for all | ||||||
| 18 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
| 19 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
| 20 | of Illinois by a taxpayer, for educational or vocational | ||||||
| 21 | training in
semi-technical or technical fields or semi-skilled | ||||||
| 22 | or skilled fields, which
were deducted from gross income in the | ||||||
| 23 | computation of taxable income. The
credit against the tax | ||||||
| 24 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
| 25 | training expenses. For partners, shareholders of subchapter S
| ||||||
| 26 | corporations, and owners of limited liability companies, if the | ||||||
| |||||||
| |||||||
| 1 | liability
company is treated as a partnership for purposes of | ||||||
| 2 | federal and State income
taxation, there shall be allowed a | ||||||
| 3 | credit under this subsection (j) to be
determined in accordance | ||||||
| 4 | with the determination of income and distributive
share of | ||||||
| 5 | income under Sections 702 and 704 and subchapter S of the | ||||||
| 6 | Internal
Revenue Code. | ||||||
| 7 | Any credit allowed under this subsection which is unused in | ||||||
| 8 | the year
the credit is earned may be carried forward to each of | ||||||
| 9 | the 5 taxable
years following the year for which the credit is | ||||||
| 10 | first computed until it is
used. This credit shall be applied | ||||||
| 11 | first to the earliest year for which
there is a liability. If | ||||||
| 12 | there is a credit under this subsection from more
than one tax | ||||||
| 13 | year that is available to offset a liability the earliest
| ||||||
| 14 | credit arising under this subsection shall be applied first. No | ||||||
| 15 | carryforward
credit may be claimed in any tax year ending on or | ||||||
| 16 | after
December 31, 2003. | ||||||
| 17 | (k) Research and development credit. For tax years ending | ||||||
| 18 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
| 19 | beginning again for tax years ending on or after December 31, | ||||||
| 20 | 2004, and ending prior to January 1, 2019 January 1, 2022, a | ||||||
| 21 | taxpayer shall be
allowed a credit against the tax imposed by | ||||||
| 22 | subsections (a) and (b) of this
Section for increasing research | ||||||
| 23 | activities in this State. The credit
allowed against the tax | ||||||
| 24 | imposed by subsections (a) and (b) shall be equal
to 6 1/2% of | ||||||
| 25 | the qualifying expenditures for increasing research activities
| ||||||
| 26 | in this State. For partners, shareholders of subchapter S | ||||||
| |||||||
| |||||||
| 1 | corporations, and
owners of limited liability companies, if the | ||||||
| 2 | liability company is treated as a
partnership for purposes of | ||||||
| 3 | federal and State income taxation, there shall be
allowed a | ||||||
| 4 | credit under this subsection to be determined in accordance | ||||||
| 5 | with the
determination of income and distributive share of | ||||||
| 6 | income under Sections 702 and
704 and subchapter S of the | ||||||
| 7 | Internal Revenue Code. | ||||||
| 8 | For purposes of this subsection, "qualifying expenditures" | ||||||
| 9 | means the
qualifying expenditures as defined for the federal | ||||||
| 10 | credit for increasing
research activities which would be | ||||||
| 11 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
| 12 | which are conducted in this State, "qualifying
expenditures for | ||||||
| 13 | increasing research activities in this State" means the
excess | ||||||
| 14 | of qualifying expenditures for the taxable year in which | ||||||
| 15 | incurred
over qualifying expenditures for the base period, | ||||||
| 16 | "qualifying expenditures
for the base period" means the average | ||||||
| 17 | of the qualifying expenditures for
each year in the base | ||||||
| 18 | period, and "base period" means the 3 taxable years
immediately | ||||||
| 19 | preceding the taxable year for which the determination is
being | ||||||
| 20 | made. | ||||||
| 21 | Any credit in excess of the tax liability for the taxable | ||||||
| 22 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
| 23 | unused credit shown on its final completed return carried over | ||||||
| 24 | as a credit
against the tax liability for the following 5 | ||||||
| 25 | taxable years or until it has
been fully used, whichever occurs | ||||||
| 26 | first; provided that no credit earned in a tax year ending | ||||||
| |||||||
| |||||||
| 1 | prior to December 31, 2003 may be carried forward to any year | ||||||
| 2 | ending on or after December 31, 2003. | ||||||
| 3 | If an unused credit is carried forward to a given year from | ||||||
| 4 | 2 or more
earlier years, that credit arising in the earliest | ||||||
| 5 | year will be applied
first against the tax liability for the | ||||||
| 6 | given year. If a tax liability for
the given year still | ||||||
| 7 | remains, the credit from the next earliest year will
then be | ||||||
| 8 | applied, and so on, until all credits have been used or no tax
| ||||||
| 9 | liability for the given year remains. Any remaining unused | ||||||
| 10 | credit or
credits then will be carried forward to the next | ||||||
| 11 | following year in which a
tax liability is incurred, except | ||||||
| 12 | that no credit can be carried forward to
a year which is more | ||||||
| 13 | than 5 years after the year in which the expense for
which the | ||||||
| 14 | credit is given was incurred. | ||||||
| 15 | No inference shall be drawn from this amendatory Act of the | ||||||
| 16 | 91st General
Assembly in construing this Section for taxable | ||||||
| 17 | years beginning before January
1, 1999. | ||||||
| 18 | It is the intent of the General Assembly that the research | ||||||
| 19 | and development credit under this subsection (k) shall apply | ||||||
| 20 | continuously for all tax years ending on or after December 31, | ||||||
| 21 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
| 22 | limited to, the period beginning on January 1, 2016 and ending | ||||||
| 23 | on the effective date of this amendatory Act of the 100th | ||||||
| 24 | General Assembly. All actions taken in reliance on the | ||||||
| 25 | continuation of the credit under this subsection (k) by any | ||||||
| 26 | taxpayer are hereby validated. | ||||||
| |||||||
| |||||||
| 1 | (l) Environmental Remediation Tax Credit. | ||||||
| 2 | (i) For tax years ending after December 31, 1997 and on | ||||||
| 3 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
| 4 | credit against the tax
imposed by subsections (a) and (b) | ||||||
| 5 | of this Section for certain amounts paid
for unreimbursed | ||||||
| 6 | eligible remediation costs, as specified in this | ||||||
| 7 | subsection.
For purposes of this Section, "unreimbursed | ||||||
| 8 | eligible remediation costs" means
costs approved by the | ||||||
| 9 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
| 10 | Section 58.14 of the Environmental Protection Act that were | ||||||
| 11 | paid in performing
environmental remediation at a site for | ||||||
| 12 | which a No Further Remediation Letter
was issued by the | ||||||
| 13 | Agency and recorded under Section 58.10 of the | ||||||
| 14 | Environmental
Protection Act. The credit must be claimed | ||||||
| 15 | for the taxable year in which
Agency approval of the | ||||||
| 16 | eligible remediation costs is granted. The credit is
not | ||||||
| 17 | available to any taxpayer if the taxpayer or any related | ||||||
| 18 | party caused or
contributed to, in any material respect, a | ||||||
| 19 | release of regulated substances on,
in, or under the site | ||||||
| 20 | that was identified and addressed by the remedial
action | ||||||
| 21 | pursuant to the Site Remediation Program of the | ||||||
| 22 | Environmental Protection
Act. After the Pollution Control | ||||||
| 23 | Board rules are adopted pursuant to the
Illinois | ||||||
| 24 | Administrative Procedure Act for the administration and | ||||||
| 25 | enforcement of
Section 58.9 of the Environmental | ||||||
| 26 | Protection Act, determinations as to credit
availability | ||||||
| |||||||
| |||||||
| 1 | for purposes of this Section shall be made consistent with | ||||||
| 2 | those
rules. For purposes of this Section, "taxpayer" | ||||||
| 3 | includes a person whose tax
attributes the taxpayer has | ||||||
| 4 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
| 5 | and "related party" includes the persons disallowed a | ||||||
| 6 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
| 7 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
| 8 | a related taxpayer, as well as any of its
partners. The | ||||||
| 9 | credit allowed against the tax imposed by subsections (a) | ||||||
| 10 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
| 11 | remediation costs in
excess of $100,000 per site, except | ||||||
| 12 | that the $100,000 threshold shall not apply
to any site | ||||||
| 13 | contained in an enterprise zone as determined by the | ||||||
| 14 | Department of
Commerce and Community Affairs (now | ||||||
| 15 | Department of Commerce and Economic Opportunity). The | ||||||
| 16 | total credit allowed shall not exceed
$40,000 per year with | ||||||
| 17 | a maximum total of $150,000 per site. For partners and
| ||||||
| 18 | shareholders of subchapter S corporations, there shall be | ||||||
| 19 | allowed a credit
under this subsection to be determined in | ||||||
| 20 | accordance with the determination of
income and | ||||||
| 21 | distributive share of income under Sections 702 and 704 and
| ||||||
| 22 | subchapter S of the Internal Revenue Code. | ||||||
| 23 | (ii) A credit allowed under this subsection that is | ||||||
| 24 | unused in the year
the credit is earned may be carried | ||||||
| 25 | forward to each of the 5 taxable years
following the year | ||||||
| 26 | for which the credit is first earned until it is used.
The | ||||||
| |||||||
| |||||||
| 1 | term "unused credit" does not include any amounts of | ||||||
| 2 | unreimbursed eligible
remediation costs in excess of the | ||||||
| 3 | maximum credit per site authorized under
paragraph (i). | ||||||
| 4 | This credit shall be applied first to the earliest year
for | ||||||
| 5 | which there is a liability. If there is a credit under this | ||||||
| 6 | subsection
from more than one tax year that is available to | ||||||
| 7 | offset a liability, the
earliest credit arising under this | ||||||
| 8 | subsection shall be applied first. A
credit allowed under | ||||||
| 9 | this subsection may be sold to a buyer as part of a sale
of | ||||||
| 10 | all or part of the remediation site for which the credit | ||||||
| 11 | was granted. The
purchaser of a remediation site and the | ||||||
| 12 | tax credit shall succeed to the unused
credit and remaining | ||||||
| 13 | carry-forward period of the seller. To perfect the
| ||||||
| 14 | transfer, the assignor shall record the transfer in the | ||||||
| 15 | chain of title for the
site and provide written notice to | ||||||
| 16 | the Director of the Illinois Department of
Revenue of the | ||||||
| 17 | assignor's intent to sell the remediation site and the | ||||||
| 18 | amount of
the tax credit to be transferred as a portion of | ||||||
| 19 | the sale. In no event may a
credit be transferred to any | ||||||
| 20 | taxpayer if the taxpayer or a related party would
not be | ||||||
| 21 | eligible under the provisions of subsection (i). | ||||||
| 22 | (iii) For purposes of this Section, the term "site" | ||||||
| 23 | shall have the same
meaning as under Section 58.2 of the | ||||||
| 24 | Environmental Protection Act. | ||||||
| 25 | (m) Education expense credit. Beginning with tax years | ||||||
| 26 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
| |||||||
| |||||||
| 1 | of one or more qualifying pupils shall be allowed a credit
| ||||||
| 2 | against the tax imposed by subsections (a) and (b) of this | ||||||
| 3 | Section for
qualified education expenses incurred on behalf of | ||||||
| 4 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
| 5 | qualified education expenses, but in no
event may the total | ||||||
| 6 | credit under this subsection claimed by a
family that is the
| ||||||
| 7 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
| 8 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
| 9 | ending on or after December 31, 2017. In no event shall a | ||||||
| 10 | credit under
this subsection reduce the taxpayer's liability | ||||||
| 11 | under this Act to less than
zero. Notwithstanding any other | ||||||
| 12 | provision of law, for taxable years beginning on or after | ||||||
| 13 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
| 14 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
| 15 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
| 16 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
| 17 | of all other taxpayers. This subsection is exempt from the | ||||||
| 18 | provisions of Section 250 of this
Act. | ||||||
| 19 | For purposes of this subsection: | ||||||
| 20 | "Qualifying pupils" means individuals who (i) are | ||||||
| 21 | residents of the State of
Illinois, (ii) are under the age of | ||||||
| 22 | 21 at the close of the school year for
which a credit is | ||||||
| 23 | sought, and (iii) during the school year for which a credit
is | ||||||
| 24 | sought were full-time pupils enrolled in a kindergarten through | ||||||
| 25 | twelfth
grade education program at any school, as defined in | ||||||
| 26 | this subsection. | ||||||
| |||||||
| |||||||
| 1 | "Qualified education expense" means the amount incurred
on | ||||||
| 2 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
| 3 | book fees, and
lab fees at the school in which the pupil is | ||||||
| 4 | enrolled during the regular school
year. | ||||||
| 5 | "School" means any public or nonpublic elementary or | ||||||
| 6 | secondary school in
Illinois that is in compliance with Title | ||||||
| 7 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
| 8 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
| 9 | except that nothing shall be construed to require a child to
| ||||||
| 10 | attend any particular public or nonpublic school to qualify for | ||||||
| 11 | the credit
under this Section. | ||||||
| 12 | "Custodian" means, with respect to qualifying pupils, an | ||||||
| 13 | Illinois resident
who is a parent, the parents, a legal | ||||||
| 14 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
| 15 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
| 16 | credit.
| ||||||
| 17 | (i) For tax years ending on or after December 31, 2006, | ||||||
| 18 | a taxpayer shall be allowed a credit against the tax | ||||||
| 19 | imposed by subsections (a) and (b) of this Section for | ||||||
| 20 | certain amounts paid for unreimbursed eligible remediation | ||||||
| 21 | costs, as specified in this subsection. For purposes of | ||||||
| 22 | this Section, "unreimbursed eligible remediation costs" | ||||||
| 23 | means costs approved by the Illinois Environmental | ||||||
| 24 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
| 25 | Environmental Protection Act that were paid in performing | ||||||
| 26 | environmental remediation at a site within a River Edge | ||||||
| |||||||
| |||||||
| 1 | Redevelopment Zone for which a No Further Remediation | ||||||
| 2 | Letter was issued by the Agency and recorded under Section | ||||||
| 3 | 58.10 of the Environmental Protection Act. The credit must | ||||||
| 4 | be claimed for the taxable year in which Agency approval of | ||||||
| 5 | the eligible remediation costs is granted. The credit is | ||||||
| 6 | not available to any taxpayer if the taxpayer or any | ||||||
| 7 | related party caused or contributed to, in any material | ||||||
| 8 | respect, a release of regulated substances on, in, or under | ||||||
| 9 | the site that was identified and addressed by the remedial | ||||||
| 10 | action pursuant to the Site Remediation Program of the | ||||||
| 11 | Environmental Protection Act. Determinations as to credit | ||||||
| 12 | availability for purposes of this Section shall be made | ||||||
| 13 | consistent with rules adopted by the Pollution Control | ||||||
| 14 | Board pursuant to the Illinois Administrative Procedure | ||||||
| 15 | Act for the administration and enforcement of Section 58.9 | ||||||
| 16 | of the Environmental Protection Act. For purposes of this | ||||||
| 17 | Section, "taxpayer" includes a person whose tax attributes | ||||||
| 18 | the taxpayer has succeeded to under Section 381 of the | ||||||
| 19 | Internal Revenue Code and "related party" includes the | ||||||
| 20 | persons disallowed a deduction for losses by paragraphs | ||||||
| 21 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
| 22 | Code by virtue of being a related taxpayer, as well as any | ||||||
| 23 | of its partners. The credit allowed against the tax imposed | ||||||
| 24 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
| 25 | unreimbursed eligible remediation costs in excess of | ||||||
| 26 | $100,000 per site. | ||||||
| |||||||
| |||||||
| 1 | (ii) A credit allowed under this subsection that is | ||||||
| 2 | unused in the year the credit is earned may be carried | ||||||
| 3 | forward to each of the 5 taxable years following the year | ||||||
| 4 | for which the credit is first earned until it is used. This | ||||||
| 5 | credit shall be applied first to the earliest year for | ||||||
| 6 | which there is a liability. If there is a credit under this | ||||||
| 7 | subsection from more than one tax year that is available to | ||||||
| 8 | offset a liability, the earliest credit arising under this | ||||||
| 9 | subsection shall be applied first. A credit allowed under | ||||||
| 10 | this subsection may be sold to a buyer as part of a sale of | ||||||
| 11 | all or part of the remediation site for which the credit | ||||||
| 12 | was granted. The purchaser of a remediation site and the | ||||||
| 13 | tax credit shall succeed to the unused credit and remaining | ||||||
| 14 | carry-forward period of the seller. To perfect the | ||||||
| 15 | transfer, the assignor shall record the transfer in the | ||||||
| 16 | chain of title for the site and provide written notice to | ||||||
| 17 | the Director of the Illinois Department of Revenue of the | ||||||
| 18 | assignor's intent to sell the remediation site and the | ||||||
| 19 | amount of the tax credit to be transferred as a portion of | ||||||
| 20 | the sale. In no event may a credit be transferred to any | ||||||
| 21 | taxpayer if the taxpayer or a related party would not be | ||||||
| 22 | eligible under the provisions of subsection (i). | ||||||
| 23 | (iii) For purposes of this Section, the term "site" | ||||||
| 24 | shall have the same meaning as under Section 58.2 of the | ||||||
| 25 | Environmental Protection Act. | ||||||
| 26 | (o) For each of taxable years during the Compassionate Use | ||||||
| |||||||
| |||||||
| 1 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
| 2 | all taxpayers on income arising from the sale or exchange of | ||||||
| 3 | capital assets, depreciable business property, real property | ||||||
| 4 | used in the trade or business, and Section 197 intangibles of | ||||||
| 5 | an organization registrant under the Compassionate Use of | ||||||
| 6 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
| 7 | is equal to the amount of federal income tax liability for the | ||||||
| 8 | taxable year attributable to those sales and exchanges. The | ||||||
| 9 | surcharge imposed does not apply if: | ||||||
| 10 | (1) the medical cannabis cultivation center | ||||||
| 11 | registration, medical cannabis dispensary registration, or | ||||||
| 12 | the property of a registration is transferred as a result | ||||||
| 13 | of any of the following: | ||||||
| 14 | (A) bankruptcy, a receivership, or a debt | ||||||
| 15 | adjustment initiated by or against the initial | ||||||
| 16 | registration or the substantial owners of the initial | ||||||
| 17 | registration; | ||||||
| 18 | (B) cancellation, revocation, or termination of | ||||||
| 19 | any registration by the Illinois Department of Public | ||||||
| 20 | Health; | ||||||
| 21 | (C) a determination by the Illinois Department of | ||||||
| 22 | Public Health that transfer of the registration is in | ||||||
| 23 | the best interests of Illinois qualifying patients as | ||||||
| 24 | defined by the Compassionate Use of Medical Cannabis | ||||||
| 25 | Pilot Program Act; | ||||||
| 26 | (D) the death of an owner of the equity interest in | ||||||
| |||||||
| |||||||
| 1 | a registrant; | ||||||
| 2 | (E) the acquisition of a controlling interest in | ||||||
| 3 | the stock or substantially all of the assets of a | ||||||
| 4 | publicly traded company; | ||||||
| 5 | (F) a transfer by a parent company to a wholly | ||||||
| 6 | owned subsidiary; or | ||||||
| 7 | (G) the transfer or sale to or by one person to | ||||||
| 8 | another person where both persons were initial owners | ||||||
| 9 | of the registration when the registration was issued; | ||||||
| 10 | or | ||||||
| 11 | (2) the cannabis cultivation center registration, | ||||||
| 12 | medical cannabis dispensary registration, or the | ||||||
| 13 | controlling interest in a registrant's property is | ||||||
| 14 | transferred in a transaction to lineal descendants in which | ||||||
| 15 | no gain or loss is recognized or as a result of a | ||||||
| 16 | transaction in accordance with Section 351 of the Internal | ||||||
| 17 | Revenue Code in which no gain or loss is recognized. | ||||||
| 18 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
| 19 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
| 20 | Sec. 203. Base income defined. | ||||||
| 21 | (a) Individuals. | ||||||
| 22 | (1) In general. In the case of an individual, base | ||||||
| 23 | income means an
amount equal to the taxpayer's adjusted | ||||||
| 24 | gross income for the taxable
year as modified by paragraph | ||||||
| 25 | (2). | ||||||
| |||||||
| |||||||
| 1 | (2) Modifications. The adjusted gross income referred | ||||||
| 2 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
| 3 | sum of the
following amounts: | ||||||
| 4 | (A) An amount equal to all amounts paid or accrued | ||||||
| 5 | to the taxpayer
as interest or dividends during the | ||||||
| 6 | taxable year to the extent excluded
from gross income | ||||||
| 7 | in the computation of adjusted gross income, except | ||||||
| 8 | stock
dividends of qualified public utilities | ||||||
| 9 | described in Section 305(e) of the
Internal Revenue | ||||||
| 10 | Code; | ||||||
| 11 | (B) An amount equal to the amount of tax imposed by | ||||||
| 12 | this Act to the
extent deducted from gross income in | ||||||
| 13 | the computation of adjusted gross
income for the | ||||||
| 14 | taxable year; | ||||||
| 15 | (C) An amount equal to the amount received during | ||||||
| 16 | the taxable year
as a recovery or refund of real | ||||||
| 17 | property taxes paid with respect to the
taxpayer's | ||||||
| 18 | principal residence under the Revenue Act of
1939 and | ||||||
| 19 | for which a deduction was previously taken under | ||||||
| 20 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
| 21 | 1991, the retrospective application date of
Article 4 | ||||||
| 22 | of Public Act 87-17. In the case of multi-unit or | ||||||
| 23 | multi-use
structures and farm dwellings, the taxes on | ||||||
| 24 | the taxpayer's principal residence
shall be that | ||||||
| 25 | portion of the total taxes for the entire property | ||||||
| 26 | which is
attributable to such principal residence; | ||||||
| |||||||
| |||||||
| 1 | (D) An amount equal to the amount of the capital | ||||||
| 2 | gain deduction
allowable under the Internal Revenue | ||||||
| 3 | Code, to the extent deducted from gross
income in the | ||||||
| 4 | computation of adjusted gross income; | ||||||
| 5 | (D-5) An amount, to the extent not included in | ||||||
| 6 | adjusted gross income,
equal to the amount of money | ||||||
| 7 | withdrawn by the taxpayer in the taxable year from
a | ||||||
| 8 | medical care savings account and the interest earned on | ||||||
| 9 | the account in the
taxable year of a withdrawal | ||||||
| 10 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
| 11 | Care Savings Account Act or subsection (b) of Section | ||||||
| 12 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
| 13 | (D-10) For taxable years ending after December 31, | ||||||
| 14 | 1997, an
amount equal to any eligible remediation costs | ||||||
| 15 | that the individual
deducted in computing adjusted | ||||||
| 16 | gross income and for which the
individual claims a | ||||||
| 17 | credit under subsection (l) of Section 201; | ||||||
| 18 | (D-15) For taxable years 2001 and thereafter, an | ||||||
| 19 | amount equal to the
bonus depreciation deduction taken | ||||||
| 20 | on the taxpayer's federal income tax return for the | ||||||
| 21 | taxable
year under subsection (k) of Section 168 of the | ||||||
| 22 | Internal Revenue Code; | ||||||
| 23 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
| 24 | or otherwise disposes of property for which the | ||||||
| 25 | taxpayer was required in any taxable year to
make an | ||||||
| 26 | addition modification under subparagraph (D-15), then | ||||||
| |||||||
| |||||||
| 1 | an amount equal
to the aggregate amount of the | ||||||
| 2 | deductions taken in all taxable
years under | ||||||
| 3 | subparagraph (Z) with respect to that property. | ||||||
| 4 | If the taxpayer continues to own property through | ||||||
| 5 | the last day of the last tax year for which the | ||||||
| 6 | taxpayer may claim a depreciation deduction for | ||||||
| 7 | federal income tax purposes and for which the taxpayer | ||||||
| 8 | was allowed in any taxable year to make a subtraction | ||||||
| 9 | modification under subparagraph (Z), then an amount | ||||||
| 10 | equal to that subtraction modification.
| ||||||
| 11 | The taxpayer is required to make the addition | ||||||
| 12 | modification under this
subparagraph
only once with | ||||||
| 13 | respect to any one piece of property; | ||||||
| 14 | (D-17) An amount equal to the amount otherwise | ||||||
| 15 | allowed as a deduction in computing base income for | ||||||
| 16 | interest paid, accrued, or incurred, directly or | ||||||
| 17 | indirectly, (i) for taxable years ending on or after | ||||||
| 18 | December 31, 2004, to a foreign person who would be a | ||||||
| 19 | member of the same unitary business group but for the | ||||||
| 20 | fact that foreign person's business activity outside | ||||||
| 21 | the United States is 80% or more of the foreign | ||||||
| 22 | person's total business activity and (ii) for taxable | ||||||
| 23 | years ending on or after December 31, 2008, to a person | ||||||
| 24 | who would be a member of the same unitary business | ||||||
| 25 | group but for the fact that the person is prohibited | ||||||
| 26 | under Section 1501(a)(27) from being included in the | ||||||
| |||||||
| |||||||
| 1 | unitary business group because he or she is ordinarily | ||||||
| 2 | required to apportion business income under different | ||||||
| 3 | subsections of Section 304. The addition modification | ||||||
| 4 | required by this subparagraph shall be reduced to the | ||||||
| 5 | extent that dividends were included in base income of | ||||||
| 6 | the unitary group for the same taxable year and | ||||||
| 7 | received by the taxpayer or by a member of the | ||||||
| 8 | taxpayer's unitary business group (including amounts | ||||||
| 9 | included in gross income under Sections 951 through 964 | ||||||
| 10 | of the Internal Revenue Code and amounts included in | ||||||
| 11 | gross income under Section 78 of the Internal Revenue | ||||||
| 12 | Code) with respect to the stock of the same person to | ||||||
| 13 | whom the interest was paid, accrued, or incurred. | ||||||
| 14 | This paragraph shall not apply to the following:
| ||||||
| 15 | (i) an item of interest paid, accrued, or | ||||||
| 16 | incurred, directly or indirectly, to a person who | ||||||
| 17 | is subject in a foreign country or state, other | ||||||
| 18 | than a state which requires mandatory unitary | ||||||
| 19 | reporting, to a tax on or measured by net income | ||||||
| 20 | with respect to such interest; or | ||||||
| 21 | (ii) an item of interest paid, accrued, or | ||||||
| 22 | incurred, directly or indirectly, to a person if | ||||||
| 23 | the taxpayer can establish, based on a | ||||||
| 24 | preponderance of the evidence, both of the | ||||||
| 25 | following: | ||||||
| 26 | (a) the person, during the same taxable | ||||||
| |||||||
| |||||||
| 1 | year, paid, accrued, or incurred, the interest | ||||||
| 2 | to a person that is not a related member, and | ||||||
| 3 | (b) the transaction giving rise to the | ||||||
| 4 | interest expense between the taxpayer and the | ||||||
| 5 | person did not have as a principal purpose the | ||||||
| 6 | avoidance of Illinois income tax, and is paid | ||||||
| 7 | pursuant to a contract or agreement that | ||||||
| 8 | reflects an arm's-length interest rate and | ||||||
| 9 | terms; or
| ||||||
| 10 | (iii) the taxpayer can establish, based on | ||||||
| 11 | clear and convincing evidence, that the interest | ||||||
| 12 | paid, accrued, or incurred relates to a contract or | ||||||
| 13 | agreement entered into at arm's-length rates and | ||||||
| 14 | terms and the principal purpose for the payment is | ||||||
| 15 | not federal or Illinois tax avoidance; or
| ||||||
| 16 | (iv) an item of interest paid, accrued, or | ||||||
| 17 | incurred, directly or indirectly, to a person if | ||||||
| 18 | the taxpayer establishes by clear and convincing | ||||||
| 19 | evidence that the adjustments are unreasonable; or | ||||||
| 20 | if the taxpayer and the Director agree in writing | ||||||
| 21 | to the application or use of an alternative method | ||||||
| 22 | of apportionment under Section 304(f).
| ||||||
| 23 | Nothing in this subsection shall preclude the | ||||||
| 24 | Director from making any other adjustment | ||||||
| 25 | otherwise allowed under Section 404 of this Act for | ||||||
| 26 | any tax year beginning after the effective date of | ||||||
| |||||||
| |||||||
| 1 | this amendment provided such adjustment is made | ||||||
| 2 | pursuant to regulation adopted by the Department | ||||||
| 3 | and such regulations provide methods and standards | ||||||
| 4 | by which the Department will utilize its authority | ||||||
| 5 | under Section 404 of this Act;
| ||||||
| 6 | (D-18) An amount equal to the amount of intangible | ||||||
| 7 | expenses and costs otherwise allowed as a deduction in | ||||||
| 8 | computing base income, and that were paid, accrued, or | ||||||
| 9 | incurred, directly or indirectly, (i) for taxable | ||||||
| 10 | years ending on or after December 31, 2004, to a | ||||||
| 11 | foreign person who would be a member of the same | ||||||
| 12 | unitary business group but for the fact that the | ||||||
| 13 | foreign person's business activity outside the United | ||||||
| 14 | States is 80% or more of that person's total business | ||||||
| 15 | activity and (ii) for taxable years ending on or after | ||||||
| 16 | December 31, 2008, to a person who would be a member of | ||||||
| 17 | the same unitary business group but for the fact that | ||||||
| 18 | the person is prohibited under Section 1501(a)(27) | ||||||
| 19 | from being included in the unitary business group | ||||||
| 20 | because he or she is ordinarily required to apportion | ||||||
| 21 | business income under different subsections of Section | ||||||
| 22 | 304. The addition modification required by this | ||||||
| 23 | subparagraph shall be reduced to the extent that | ||||||
| 24 | dividends were included in base income of the unitary | ||||||
| 25 | group for the same taxable year and received by the | ||||||
| 26 | taxpayer or by a member of the taxpayer's unitary | ||||||
| |||||||
| |||||||
| 1 | business group (including amounts included in gross | ||||||
| 2 | income under Sections 951 through 964 of the Internal | ||||||
| 3 | Revenue Code and amounts included in gross income under | ||||||
| 4 | Section 78 of the Internal Revenue Code) with respect | ||||||
| 5 | to the stock of the same person to whom the intangible | ||||||
| 6 | expenses and costs were directly or indirectly paid, | ||||||
| 7 | incurred, or accrued. The preceding sentence does not | ||||||
| 8 | apply to the extent that the same dividends caused a | ||||||
| 9 | reduction to the addition modification required under | ||||||
| 10 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
| 11 | subparagraph, the term "intangible expenses and costs" | ||||||
| 12 | includes (1) expenses, losses, and costs for, or | ||||||
| 13 | related to, the direct or indirect acquisition, use, | ||||||
| 14 | maintenance or management, ownership, sale, exchange, | ||||||
| 15 | or any other disposition of intangible property; (2) | ||||||
| 16 | losses incurred, directly or indirectly, from | ||||||
| 17 | factoring transactions or discounting transactions; | ||||||
| 18 | (3) royalty, patent, technical, and copyright fees; | ||||||
| 19 | (4) licensing fees; and (5) other similar expenses and | ||||||
| 20 | costs.
For purposes of this subparagraph, "intangible | ||||||
| 21 | property" includes patents, patent applications, trade | ||||||
| 22 | names, trademarks, service marks, copyrights, mask | ||||||
| 23 | works, trade secrets, and similar types of intangible | ||||||
| 24 | assets. | ||||||
| 25 | This paragraph shall not apply to the following: | ||||||
| 26 | (i) any item of intangible expenses or costs | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred, directly or | ||||||
| 2 | indirectly, from a transaction with a person who is | ||||||
| 3 | subject in a foreign country or state, other than a | ||||||
| 4 | state which requires mandatory unitary reporting, | ||||||
| 5 | to a tax on or measured by net income with respect | ||||||
| 6 | to such item; or | ||||||
| 7 | (ii) any item of intangible expense or cost | ||||||
| 8 | paid, accrued, or incurred, directly or | ||||||
| 9 | indirectly, if the taxpayer can establish, based | ||||||
| 10 | on a preponderance of the evidence, both of the | ||||||
| 11 | following: | ||||||
| 12 | (a) the person during the same taxable | ||||||
| 13 | year paid, accrued, or incurred, the | ||||||
| 14 | intangible expense or cost to a person that is | ||||||
| 15 | not a related member, and | ||||||
| 16 | (b) the transaction giving rise to the | ||||||
| 17 | intangible expense or cost between the | ||||||
| 18 | taxpayer and the person did not have as a | ||||||
| 19 | principal purpose the avoidance of Illinois | ||||||
| 20 | income tax, and is paid pursuant to a contract | ||||||
| 21 | or agreement that reflects arm's-length terms; | ||||||
| 22 | or | ||||||
| 23 | (iii) any item of intangible expense or cost | ||||||
| 24 | paid, accrued, or incurred, directly or | ||||||
| 25 | indirectly, from a transaction with a person if the | ||||||
| 26 | taxpayer establishes by clear and convincing | ||||||
| |||||||
| |||||||
| 1 | evidence, that the adjustments are unreasonable; | ||||||
| 2 | or if the taxpayer and the Director agree in | ||||||
| 3 | writing to the application or use of an alternative | ||||||
| 4 | method of apportionment under Section 304(f);
| ||||||
| 5 | Nothing in this subsection shall preclude the | ||||||
| 6 | Director from making any other adjustment | ||||||
| 7 | otherwise allowed under Section 404 of this Act for | ||||||
| 8 | any tax year beginning after the effective date of | ||||||
| 9 | this amendment provided such adjustment is made | ||||||
| 10 | pursuant to regulation adopted by the Department | ||||||
| 11 | and such regulations provide methods and standards | ||||||
| 12 | by which the Department will utilize its authority | ||||||
| 13 | under Section 404 of this Act;
| ||||||
| 14 | (D-19) For taxable years ending on or after | ||||||
| 15 | December 31, 2008, an amount equal to the amount of | ||||||
| 16 | insurance premium expenses and costs otherwise allowed | ||||||
| 17 | as a deduction in computing base income, and that were | ||||||
| 18 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 19 | a person who would be a member of the same unitary | ||||||
| 20 | business group but for the fact that the person is | ||||||
| 21 | prohibited under Section 1501(a)(27) from being | ||||||
| 22 | included in the unitary business group because he or | ||||||
| 23 | she is ordinarily required to apportion business | ||||||
| 24 | income under different subsections of Section 304. The | ||||||
| 25 | addition modification required by this subparagraph | ||||||
| 26 | shall be reduced to the extent that dividends were | ||||||
| |||||||
| |||||||
| 1 | included in base income of the unitary group for the | ||||||
| 2 | same taxable year and received by the taxpayer or by a | ||||||
| 3 | member of the taxpayer's unitary business group | ||||||
| 4 | (including amounts included in gross income under | ||||||
| 5 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 6 | and amounts included in gross income under Section 78 | ||||||
| 7 | of the Internal Revenue Code) with respect to the stock | ||||||
| 8 | of the same person to whom the premiums and costs were | ||||||
| 9 | directly or indirectly paid, incurred, or accrued. The | ||||||
| 10 | preceding sentence does not apply to the extent that | ||||||
| 11 | the same dividends caused a reduction to the addition | ||||||
| 12 | modification required under Section 203(a)(2)(D-17) or | ||||||
| 13 | Section 203(a)(2)(D-18) of this Act.
| ||||||
| 14 | (D-20) For taxable years beginning on or after | ||||||
| 15 | January 1,
2002 and ending on or before December 31, | ||||||
| 16 | 2006, in
the
case of a distribution from a qualified | ||||||
| 17 | tuition program under Section 529 of
the Internal | ||||||
| 18 | Revenue Code, other than (i) a distribution from a | ||||||
| 19 | College Savings
Pool created under Section 16.5 of the | ||||||
| 20 | State Treasurer Act or (ii) a
distribution from the | ||||||
| 21 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
| 22 | the amount excluded from gross income under Section | ||||||
| 23 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
| 24 | January 1, 2007, in the case of a distribution from a | ||||||
| 25 | qualified tuition program under Section 529 of the | ||||||
| 26 | Internal Revenue Code, other than (i) a distribution | ||||||
| |||||||
| |||||||
| 1 | from a College Savings Pool created under Section 16.5 | ||||||
| 2 | of the State Treasurer Act, (ii) a distribution from | ||||||
| 3 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
| 4 | distribution from a qualified tuition program under | ||||||
| 5 | Section 529 of the Internal Revenue Code that (I) | ||||||
| 6 | adopts and determines that its offering materials | ||||||
| 7 | comply with the College Savings Plans Network's | ||||||
| 8 | disclosure principles and (II) has made reasonable | ||||||
| 9 | efforts to inform in-state residents of the existence | ||||||
| 10 | of in-state qualified tuition programs by informing | ||||||
| 11 | Illinois residents directly and, where applicable, to | ||||||
| 12 | inform financial intermediaries distributing the | ||||||
| 13 | program to inform in-state residents of the existence | ||||||
| 14 | of in-state qualified tuition programs at least | ||||||
| 15 | annually, an amount equal to the amount excluded from | ||||||
| 16 | gross income under Section 529(c)(3)(B). | ||||||
| 17 | For the purposes of this subparagraph (D-20), a | ||||||
| 18 | qualified tuition program has made reasonable efforts | ||||||
| 19 | if it makes disclosures (which may use the term | ||||||
| 20 | "in-state program" or "in-state plan" and need not | ||||||
| 21 | specifically refer to Illinois or its qualified | ||||||
| 22 | programs by name) (i) directly to prospective | ||||||
| 23 | participants in its offering materials or makes a | ||||||
| 24 | public disclosure, such as a website posting; and (ii) | ||||||
| 25 | where applicable, to intermediaries selling the | ||||||
| 26 | out-of-state program in the same manner that the | ||||||
| |||||||
| |||||||
| 1 | out-of-state program distributes its offering | ||||||
| 2 | materials; | ||||||
| 3 | (D-20.5) For taxable years beginning on or after | ||||||
| 4 | January 1, 2018, in the case of a distribution from a | ||||||
| 5 | qualified ABLE program under Section 529A of the | ||||||
| 6 | Internal Revenue Code, other than a distribution from a | ||||||
| 7 | qualified ABLE program created under Section 16.6 of | ||||||
| 8 | the State Treasurer Act, an amount equal to the amount | ||||||
| 9 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
| 10 | of the Internal Revenue Code; | ||||||
| 11 | (D-21) For taxable years beginning on or after | ||||||
| 12 | January 1, 2007, in the case of transfer of moneys from | ||||||
| 13 | a qualified tuition program under Section 529 of the | ||||||
| 14 | Internal Revenue Code that is administered by the State | ||||||
| 15 | to an out-of-state program, an amount equal to the | ||||||
| 16 | amount of moneys previously deducted from base income | ||||||
| 17 | under subsection (a)(2)(Y) of this Section; | ||||||
| 18 | (D-21.5) For taxable years beginning on or after | ||||||
| 19 | January 1, 2018, in the case of the transfer of moneys | ||||||
| 20 | from a qualified tuition program under Section 529 or a | ||||||
| 21 | qualified ABLE program under Section 529A of the | ||||||
| 22 | Internal Revenue Code that is administered by this | ||||||
| 23 | State to an ABLE account established under an | ||||||
| 24 | out-of-state ABLE account program, an amount equal to | ||||||
| 25 | the contribution component of the transferred amount | ||||||
| 26 | that was previously deducted from base income under | ||||||
| |||||||
| |||||||
| 1 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
| 2 | Section; | ||||||
| 3 | (D-22) For taxable years beginning on or after | ||||||
| 4 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
| 5 | case of a nonqualified withdrawal or refund of moneys | ||||||
| 6 | from a qualified tuition program under Section 529 of | ||||||
| 7 | the Internal Revenue Code administered by the State | ||||||
| 8 | that is not used for qualified expenses at an eligible | ||||||
| 9 | education institution, an amount equal to the | ||||||
| 10 | contribution component of the nonqualified withdrawal | ||||||
| 11 | or refund that was previously deducted from base income | ||||||
| 12 | under subsection (a)(2)(y) of this Section, provided | ||||||
| 13 | that the withdrawal or refund did not result from the | ||||||
| 14 | beneficiary's death or disability. For taxable years | ||||||
| 15 | beginning on or after January 1, 2018: (1) in the case | ||||||
| 16 | of a nonqualified withdrawal or refund, as defined | ||||||
| 17 | under Section
16.5 of the State Treasurer Act, of | ||||||
| 18 | moneys from a qualified tuition program under Section | ||||||
| 19 | 529 of the Internal Revenue Code administered by the | ||||||
| 20 | State, an amount equal to the contribution component of | ||||||
| 21 | the nonqualified withdrawal or refund that was | ||||||
| 22 | previously deducted from base
income under subsection | ||||||
| 23 | (a)(2)(Y) of this Section, and (2) in the case of a | ||||||
| 24 | nonqualified withdrawal or refund from a qualified | ||||||
| 25 | ABLE program under Section 529A of the Internal Revenue | ||||||
| 26 | Code administered by the State that is not used for | ||||||
| |||||||
| |||||||
| 1 | qualified disability expenses, an amount equal to the | ||||||
| 2 | contribution component of the nonqualified withdrawal | ||||||
| 3 | or refund that was previously deducted from base income | ||||||
| 4 | under subsection (a)(2)(HH) of this Section; | ||||||
| 5 | (D-23) An amount equal to the credit allowable to | ||||||
| 6 | the taxpayer under Section 218(a) of this Act, | ||||||
| 7 | determined without regard to Section 218(c) of this | ||||||
| 8 | Act; | ||||||
| 9 | (D-24) For taxable years ending on or after | ||||||
| 10 | December 31, 2017 and ending on or before December 31, | ||||||
| 11 | 2018, an amount equal to the deduction allowed under | ||||||
| 12 | Section 199 of the Internal Revenue Code for the | ||||||
| 13 | taxable year; | ||||||
| 14 | and by deducting from the total so obtained the
sum of the | ||||||
| 15 | following amounts: | ||||||
| 16 | (E) For taxable years ending before December 31, | ||||||
| 17 | 2001,
any amount included in such total in respect of | ||||||
| 18 | any compensation
(including but not limited to any | ||||||
| 19 | compensation paid or accrued to a
serviceman while a | ||||||
| 20 | prisoner of war or missing in action) paid to a | ||||||
| 21 | resident
by reason of being on active duty in the Armed | ||||||
| 22 | Forces of the United States
and in respect of any | ||||||
| 23 | compensation paid or accrued to a resident who as a
| ||||||
| 24 | governmental employee was a prisoner of war or missing | ||||||
| 25 | in action, and in
respect of any compensation paid to a | ||||||
| 26 | resident in 1971 or thereafter for
annual training | ||||||
| |||||||
| |||||||
| 1 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
| 2 | United States Code as a member of the Illinois National | ||||||
| 3 | Guard or, beginning with taxable years ending on or | ||||||
| 4 | after December 31, 2007, the National Guard of any | ||||||
| 5 | other state.
For taxable years ending on or after | ||||||
| 6 | December 31, 2001, any amount included in
such total in | ||||||
| 7 | respect of any compensation (including but not limited | ||||||
| 8 | to any
compensation paid or accrued to a serviceman | ||||||
| 9 | while a prisoner of war or missing
in action) paid to a | ||||||
| 10 | resident by reason of being a member of any component | ||||||
| 11 | of
the Armed Forces of the United States and in respect | ||||||
| 12 | of any compensation paid
or accrued to a resident who | ||||||
| 13 | as a governmental employee was a prisoner of war
or | ||||||
| 14 | missing in action, and in respect of any compensation | ||||||
| 15 | paid to a resident in
2001 or thereafter by reason of | ||||||
| 16 | being a member of the Illinois National Guard or, | ||||||
| 17 | beginning with taxable years ending on or after | ||||||
| 18 | December 31, 2007, the National Guard of any other | ||||||
| 19 | state.
The provisions of this subparagraph (E) are | ||||||
| 20 | exempt
from the provisions of Section 250; | ||||||
| 21 | (F) An amount equal to all amounts included in such | ||||||
| 22 | total pursuant
to the provisions of Sections 402(a), | ||||||
| 23 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
| 24 | Internal Revenue Code, or included in such total as
| ||||||
| 25 | distributions under the provisions of any retirement | ||||||
| 26 | or disability plan for
employees of any governmental | ||||||
| |||||||
| |||||||
| 1 | agency or unit, or retirement payments to
retired | ||||||
| 2 | partners, which payments are excluded in computing net | ||||||
| 3 | earnings
from self employment by Section 1402 of the | ||||||
| 4 | Internal Revenue Code and
regulations adopted pursuant | ||||||
| 5 | thereto; | ||||||
| 6 | (G) The valuation limitation amount; | ||||||
| 7 | (H) An amount equal to the amount of any tax | ||||||
| 8 | imposed by this Act
which was refunded to the taxpayer | ||||||
| 9 | and included in such total for the
taxable year; | ||||||
| 10 | (I) An amount equal to all amounts included in such | ||||||
| 11 | total pursuant
to the provisions of Section 111 of the | ||||||
| 12 | Internal Revenue Code as a
recovery of items previously | ||||||
| 13 | deducted from adjusted gross income in the
computation | ||||||
| 14 | of taxable income; | ||||||
| 15 | (J) An amount equal to those dividends included in | ||||||
| 16 | such total which were
paid by a corporation which | ||||||
| 17 | conducts business operations in a River Edge | ||||||
| 18 | Redevelopment Zone or zones created under the River | ||||||
| 19 | Edge Redevelopment Zone Act, and conducts
| ||||||
| 20 | substantially all of its operations in a River Edge | ||||||
| 21 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
| 22 | exempt from the provisions of Section 250; | ||||||
| 23 | (K) An amount equal to those dividends included in | ||||||
| 24 | such total that
were paid by a corporation that | ||||||
| 25 | conducts business operations in a federally
designated | ||||||
| 26 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
| |||||||
| |||||||
| 1 | High Impact
Business located in Illinois; provided | ||||||
| 2 | that dividends eligible for the
deduction provided in | ||||||
| 3 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
| 4 | shall not be eligible for the deduction provided under | ||||||
| 5 | this subparagraph
(K); | ||||||
| 6 | (L) For taxable years ending after December 31, | ||||||
| 7 | 1983, an amount equal to
all social security benefits | ||||||
| 8 | and railroad retirement benefits included in
such | ||||||
| 9 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
| 10 | Revenue Code; | ||||||
| 11 | (M) With the exception of any amounts subtracted | ||||||
| 12 | under subparagraph
(N), an amount equal to the sum of | ||||||
| 13 | all amounts disallowed as
deductions by (i) Sections | ||||||
| 14 | 171(a)(2), and 265(a)(2) 265(2) of the Internal | ||||||
| 15 | Revenue Code, and all amounts of expenses allocable
to | ||||||
| 16 | interest and disallowed as deductions by Section | ||||||
| 17 | 265(a)(1) 265(1) of the Internal
Revenue Code;
and (ii) | ||||||
| 18 | for taxable years
ending on or after August 13, 1999, | ||||||
| 19 | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
| 20 | the Internal Revenue Code, plus, for taxable years | ||||||
| 21 | ending on or after December 31, 2011, Section 45G(e)(3) | ||||||
| 22 | of the Internal Revenue Code and, for taxable years | ||||||
| 23 | ending on or after December 31, 2008, any amount | ||||||
| 24 | included in gross income under Section 87 of the | ||||||
| 25 | Internal Revenue Code; the provisions of this
| ||||||
| 26 | subparagraph are exempt from the provisions of Section | ||||||
| |||||||
| |||||||
| 1 | 250; | ||||||
| 2 | (N) An amount equal to all amounts included in such | ||||||
| 3 | total which are
exempt from taxation by this State | ||||||
| 4 | either by reason of its statutes or
Constitution
or by | ||||||
| 5 | reason of the Constitution, treaties or statutes of the | ||||||
| 6 | United States;
provided that, in the case of any | ||||||
| 7 | statute of this State that exempts income
derived from | ||||||
| 8 | bonds or other obligations from the tax imposed under | ||||||
| 9 | this Act,
the amount exempted shall be the interest net | ||||||
| 10 | of bond premium amortization; | ||||||
| 11 | (O) An amount equal to any contribution made to a | ||||||
| 12 | job training
project established pursuant to the Tax | ||||||
| 13 | Increment Allocation Redevelopment Act; | ||||||
| 14 | (P) An amount equal to the amount of the deduction | ||||||
| 15 | used to compute the
federal income tax credit for | ||||||
| 16 | restoration of substantial amounts held under
claim of | ||||||
| 17 | right for the taxable year pursuant to Section 1341 of | ||||||
| 18 | the
Internal Revenue Code or of any itemized deduction | ||||||
| 19 | taken from adjusted gross income in the computation of | ||||||
| 20 | taxable income for restoration of substantial amounts | ||||||
| 21 | held under claim of right for the taxable year; | ||||||
| 22 | (Q) An amount equal to any amounts included in such | ||||||
| 23 | total, received by
the taxpayer as an acceleration in | ||||||
| 24 | the payment of life, endowment or annuity
benefits in | ||||||
| 25 | advance of the time they would otherwise be payable as | ||||||
| 26 | an indemnity
for a terminal illness; | ||||||
| |||||||
| |||||||
| 1 | (R) An amount equal to the amount of any federal or | ||||||
| 2 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
| 3 | (S) An amount, to the extent included in adjusted | ||||||
| 4 | gross income, equal
to the amount of a contribution | ||||||
| 5 | made in the taxable year on behalf of the
taxpayer to a | ||||||
| 6 | medical care savings account established under the | ||||||
| 7 | Medical Care
Savings Account Act or the Medical Care | ||||||
| 8 | Savings Account Act of 2000 to the
extent the | ||||||
| 9 | contribution is accepted by the account
administrator | ||||||
| 10 | as provided in that Act; | ||||||
| 11 | (T) An amount, to the extent included in adjusted | ||||||
| 12 | gross income, equal to
the amount of interest earned in | ||||||
| 13 | the taxable year on a medical care savings
account | ||||||
| 14 | established under the Medical Care Savings Account Act | ||||||
| 15 | or the Medical
Care Savings Account Act of 2000 on | ||||||
| 16 | behalf of the
taxpayer, other than interest added | ||||||
| 17 | pursuant to item (D-5) of this paragraph
(2); | ||||||
| 18 | (U) For one taxable year beginning on or after | ||||||
| 19 | January 1,
1994, an
amount equal to the total amount of | ||||||
| 20 | tax imposed and paid under subsections (a)
and (b) of | ||||||
| 21 | Section 201 of this Act on grant amounts received by | ||||||
| 22 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
| 23 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
| 24 | (V) Beginning with tax years ending on or after | ||||||
| 25 | December 31, 1995 and
ending with tax years ending on | ||||||
| 26 | or before December 31, 2004, an amount equal to
the | ||||||
| |||||||
| |||||||
| 1 | amount paid by a taxpayer who is a
self-employed | ||||||
| 2 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
| 3 | in a Subchapter S corporation for health insurance or | ||||||
| 4 | long-term
care insurance for that taxpayer or that | ||||||
| 5 | taxpayer's spouse or dependents, to
the extent that the | ||||||
| 6 | amount paid for that health insurance or long-term care
| ||||||
| 7 | insurance may be deducted under Section 213 of the | ||||||
| 8 | Internal Revenue Code, has not been deducted on the | ||||||
| 9 | federal income tax return of the taxpayer,
and does not | ||||||
| 10 | exceed the taxable income attributable to that | ||||||
| 11 | taxpayer's income,
self-employment income, or | ||||||
| 12 | Subchapter S corporation income; except that no
| ||||||
| 13 | deduction shall be allowed under this item (V) if the | ||||||
| 14 | taxpayer is eligible to
participate in any health | ||||||
| 15 | insurance or long-term care insurance plan of an
| ||||||
| 16 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
| 17 | amount of the health insurance and long-term care | ||||||
| 18 | insurance
subtracted under this item (V) shall be | ||||||
| 19 | determined by multiplying total
health insurance and | ||||||
| 20 | long-term care insurance premiums paid by the taxpayer
| ||||||
| 21 | times a number that represents the fractional | ||||||
| 22 | percentage of eligible medical
expenses under Section | ||||||
| 23 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
| 24 | deducted on the taxpayer's federal income tax return; | ||||||
| 25 | (W) For taxable years beginning on or after January | ||||||
| 26 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
| |||||||
| |||||||
| 1 | gross income
in the taxable year from amounts converted | ||||||
| 2 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
| 3 | exempt from the provisions of Section
250; | ||||||
| 4 | (X) For taxable year 1999 and thereafter, an amount | ||||||
| 5 | equal to the
amount of any (i) distributions, to the | ||||||
| 6 | extent includible in gross income for
federal income | ||||||
| 7 | tax purposes, made to the taxpayer because of his or | ||||||
| 8 | her status
as a victim of persecution for racial or | ||||||
| 9 | religious reasons by Nazi Germany or
any other Axis | ||||||
| 10 | regime or as an heir of the victim and (ii) items
of | ||||||
| 11 | income, to the extent
includible in gross income for | ||||||
| 12 | federal income tax purposes, attributable to,
derived | ||||||
| 13 | from or in any way related to assets stolen from, | ||||||
| 14 | hidden from, or
otherwise lost to a victim of
| ||||||
| 15 | persecution for racial or religious reasons by Nazi | ||||||
| 16 | Germany or any other Axis
regime immediately prior to, | ||||||
| 17 | during, and immediately after World War II,
including, | ||||||
| 18 | but
not limited to, interest on the proceeds receivable | ||||||
| 19 | as insurance
under policies issued to a victim of | ||||||
| 20 | persecution for racial or religious
reasons
by Nazi | ||||||
| 21 | Germany or any other Axis regime by European insurance | ||||||
| 22 | companies
immediately prior to and during World War II;
| ||||||
| 23 | provided, however, this subtraction from federal | ||||||
| 24 | adjusted gross income does not
apply to assets acquired | ||||||
| 25 | with such assets or with the proceeds from the sale of
| ||||||
| 26 | such assets; provided, further, this paragraph shall | ||||||
| |||||||
| |||||||
| 1 | only apply to a taxpayer
who was the first recipient of | ||||||
| 2 | such assets after their recovery and who is a
victim of | ||||||
| 3 | persecution for racial or religious reasons
by Nazi | ||||||
| 4 | Germany or any other Axis regime or as an heir of the | ||||||
| 5 | victim. The
amount of and the eligibility for any | ||||||
| 6 | public assistance, benefit, or
similar entitlement is | ||||||
| 7 | not affected by the inclusion of items (i) and (ii) of
| ||||||
| 8 | this paragraph in gross income for federal income tax | ||||||
| 9 | purposes.
This paragraph is exempt from the provisions | ||||||
| 10 | of Section 250; | ||||||
| 11 | (Y) For taxable years beginning on or after January | ||||||
| 12 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
| 13 | moneys contributed in the taxable year to a College | ||||||
| 14 | Savings Pool account under
Section 16.5 of the State | ||||||
| 15 | Treasurer Act, except that amounts excluded from
gross | ||||||
| 16 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
| 17 | Revenue Code
shall not be considered moneys | ||||||
| 18 | contributed under this subparagraph (Y). For taxable | ||||||
| 19 | years beginning on or after January 1, 2005, a maximum | ||||||
| 20 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
| 21 | College Savings Pool account under Section 16.5 of the
| ||||||
| 22 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
| 23 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
| 24 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
| 25 | Internal
Revenue Code shall not be considered moneys | ||||||
| 26 | contributed under this subparagraph
(Y). For purposes | ||||||
| |||||||
| |||||||
| 1 | of this subparagraph, contributions made by an | ||||||
| 2 | employer on behalf of an employee, or matching | ||||||
| 3 | contributions made by an employee, shall be treated as | ||||||
| 4 | made by the employee. This
subparagraph (Y) is exempt | ||||||
| 5 | from the provisions of Section 250; | ||||||
| 6 | (Z) For taxable years 2001 and thereafter, for the | ||||||
| 7 | taxable year in
which the bonus depreciation deduction
| ||||||
| 8 | is taken on the taxpayer's federal income tax return | ||||||
| 9 | under
subsection (k) of Section 168 of the Internal | ||||||
| 10 | Revenue Code and for each
applicable taxable year | ||||||
| 11 | thereafter, an amount equal to "x", where: | ||||||
| 12 | (1) "y" equals the amount of the depreciation | ||||||
| 13 | deduction taken for the
taxable year
on the | ||||||
| 14 | taxpayer's federal income tax return on property | ||||||
| 15 | for which the bonus
depreciation deduction
was | ||||||
| 16 | taken in any year under subsection (k) of Section | ||||||
| 17 | 168 of the Internal
Revenue Code, but not including | ||||||
| 18 | the bonus depreciation deduction; | ||||||
| 19 | (2) for taxable years ending on or before | ||||||
| 20 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 21 | and then divided by 70 (or "y"
multiplied by | ||||||
| 22 | 0.429); and | ||||||
| 23 | (3) for taxable years ending after December | ||||||
| 24 | 31, 2005: | ||||||
| 25 | (i) for property on which a bonus | ||||||
| 26 | depreciation deduction of 30% of the adjusted | ||||||
| |||||||
| |||||||
| 1 | basis was taken, "x" equals "y" multiplied by | ||||||
| 2 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
| 3 | 0.429); and | ||||||
| 4 | (ii) for property on which a bonus | ||||||
| 5 | depreciation deduction of 50% of the adjusted | ||||||
| 6 | basis was taken, "x" equals "y" multiplied by | ||||||
| 7 | 1.0. | ||||||
| 8 | The aggregate amount deducted under this | ||||||
| 9 | subparagraph in all taxable
years for any one piece of | ||||||
| 10 | property may not exceed the amount of the bonus
| ||||||
| 11 | depreciation deduction
taken on that property on the | ||||||
| 12 | taxpayer's federal income tax return under
subsection | ||||||
| 13 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 14 | subparagraph (Z) is exempt from the provisions of | ||||||
| 15 | Section 250; | ||||||
| 16 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
| 17 | or otherwise disposes of
property for which the | ||||||
| 18 | taxpayer was required in any taxable year to make an
| ||||||
| 19 | addition modification under subparagraph (D-15), then | ||||||
| 20 | an amount equal to that
addition modification.
| ||||||
| 21 | If the taxpayer continues to own property through | ||||||
| 22 | the last day of the last tax year for which the | ||||||
| 23 | taxpayer may claim a depreciation deduction for | ||||||
| 24 | federal income tax purposes and for which the taxpayer | ||||||
| 25 | was required in any taxable year to make an addition | ||||||
| 26 | modification under subparagraph (D-15), then an amount | ||||||
| |||||||
| |||||||
| 1 | equal to that addition modification.
| ||||||
| 2 | The taxpayer is allowed to take the deduction under | ||||||
| 3 | this subparagraph
only once with respect to any one | ||||||
| 4 | piece of property. | ||||||
| 5 | This subparagraph (AA) is exempt from the | ||||||
| 6 | provisions of Section 250; | ||||||
| 7 | (BB) Any amount included in adjusted gross income, | ||||||
| 8 | other
than
salary,
received by a driver in a | ||||||
| 9 | ridesharing arrangement using a motor vehicle; | ||||||
| 10 | (CC) The amount of (i) any interest income (net of | ||||||
| 11 | the deductions allocable thereto) taken into account | ||||||
| 12 | for the taxable year with respect to a transaction with | ||||||
| 13 | a taxpayer that is required to make an addition | ||||||
| 14 | modification with respect to such transaction under | ||||||
| 15 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 16 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 17 | the amount of that addition modification, and
(ii) any | ||||||
| 18 | income from intangible property (net of the deductions | ||||||
| 19 | allocable thereto) taken into account for the taxable | ||||||
| 20 | year with respect to a transaction with a taxpayer that | ||||||
| 21 | is required to make an addition modification with | ||||||
| 22 | respect to such transaction under Section | ||||||
| 23 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 24 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
| 25 | addition modification. This subparagraph (CC) is | ||||||
| 26 | exempt from the provisions of Section 250; | ||||||
| |||||||
| |||||||
| 1 | (DD) An amount equal to the interest income taken | ||||||
| 2 | into account for the taxable year (net of the | ||||||
| 3 | deductions allocable thereto) with respect to | ||||||
| 4 | transactions with (i) a foreign person who would be a | ||||||
| 5 | member of the taxpayer's unitary business group but for | ||||||
| 6 | the fact that the foreign person's business activity | ||||||
| 7 | outside the United States is 80% or more of that | ||||||
| 8 | person's total business activity and (ii) for taxable | ||||||
| 9 | years ending on or after December 31, 2008, to a person | ||||||
| 10 | who would be a member of the same unitary business | ||||||
| 11 | group but for the fact that the person is prohibited | ||||||
| 12 | under Section 1501(a)(27) from being included in the | ||||||
| 13 | unitary business group because he or she is ordinarily | ||||||
| 14 | required to apportion business income under different | ||||||
| 15 | subsections of Section 304, but not to exceed the | ||||||
| 16 | addition modification required to be made for the same | ||||||
| 17 | taxable year under Section 203(a)(2)(D-17) for | ||||||
| 18 | interest paid, accrued, or incurred, directly or | ||||||
| 19 | indirectly, to the same person. This subparagraph (DD) | ||||||
| 20 | is exempt from the provisions of Section 250; | ||||||
| 21 | (EE) An amount equal to the income from intangible | ||||||
| 22 | property taken into account for the taxable year (net | ||||||
| 23 | of the deductions allocable thereto) with respect to | ||||||
| 24 | transactions with (i) a foreign person who would be a | ||||||
| 25 | member of the taxpayer's unitary business group but for | ||||||
| 26 | the fact that the foreign person's business activity | ||||||
| |||||||
| |||||||
| 1 | outside the United States is 80% or more of that | ||||||
| 2 | person's total business activity and (ii) for taxable | ||||||
| 3 | years ending on or after December 31, 2008, to a person | ||||||
| 4 | who would be a member of the same unitary business | ||||||
| 5 | group but for the fact that the person is prohibited | ||||||
| 6 | under Section 1501(a)(27) from being included in the | ||||||
| 7 | unitary business group because he or she is ordinarily | ||||||
| 8 | required to apportion business income under different | ||||||
| 9 | subsections of Section 304, but not to exceed the | ||||||
| 10 | addition modification required to be made for the same | ||||||
| 11 | taxable year under Section 203(a)(2)(D-18) for | ||||||
| 12 | intangible expenses and costs paid, accrued, or | ||||||
| 13 | incurred, directly or indirectly, to the same foreign | ||||||
| 14 | person. This subparagraph (EE) is exempt from the | ||||||
| 15 | provisions of Section 250; | ||||||
| 16 | (FF) An amount equal to any amount awarded to the | ||||||
| 17 | taxpayer during the taxable year by the Court of Claims | ||||||
| 18 | under subsection (c) of Section 8 of the Court of | ||||||
| 19 | Claims Act for time unjustly served in a State prison. | ||||||
| 20 | This subparagraph (FF) is exempt from the provisions of | ||||||
| 21 | Section 250; | ||||||
| 22 | (GG) For taxable years ending on or after December | ||||||
| 23 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 24 | add back any insurance premiums under Section | ||||||
| 25 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
| 26 | that part of a reimbursement received from the | ||||||
| |||||||
| |||||||
| 1 | insurance company equal to the amount of the expense or | ||||||
| 2 | loss (including expenses incurred by the insurance | ||||||
| 3 | company) that would have been taken into account as a | ||||||
| 4 | deduction for federal income tax purposes if the | ||||||
| 5 | expense or loss had been uninsured. If a taxpayer makes | ||||||
| 6 | the election provided for by this subparagraph (GG), | ||||||
| 7 | the insurer to which the premiums were paid must add | ||||||
| 8 | back to income the amount subtracted by the taxpayer | ||||||
| 9 | pursuant to this subparagraph (GG). This subparagraph | ||||||
| 10 | (GG) is exempt from the provisions of Section 250; and | ||||||
| 11 | (HH) For taxable years beginning on or after | ||||||
| 12 | January 1, 2018 and prior to January 1, 2023, a maximum | ||||||
| 13 | of $10,000 contributed in the taxable year to a | ||||||
| 14 | qualified ABLE account under Section 16.6 of the State | ||||||
| 15 | Treasurer Act, except that amounts excluded from gross | ||||||
| 16 | income under Section 529(c)(3)(C)(i) or Section | ||||||
| 17 | 529A(c)(1)(C) of the Internal Revenue Code shall not be | ||||||
| 18 | considered moneys contributed under this subparagraph | ||||||
| 19 | (HH). For purposes of this subparagraph (HH), | ||||||
| 20 | contributions made by an employer on behalf of an | ||||||
| 21 | employee, or matching contributions made by an | ||||||
| 22 | employee, shall be treated as made by the employee.
| ||||||
| 23 | (b) Corporations. | ||||||
| 24 | (1) In general. In the case of a corporation, base | ||||||
| 25 | income means an
amount equal to the taxpayer's taxable | ||||||
| |||||||
| |||||||
| 1 | income for the taxable year as
modified by paragraph (2). | ||||||
| 2 | (2) Modifications. The taxable income referred to in | ||||||
| 3 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
| 4 | of the following amounts: | ||||||
| 5 | (A) An amount equal to all amounts paid or accrued | ||||||
| 6 | to the taxpayer
as interest and all distributions | ||||||
| 7 | received from regulated investment
companies during | ||||||
| 8 | the taxable year to the extent excluded from gross
| ||||||
| 9 | income in the computation of taxable income; | ||||||
| 10 | (B) An amount equal to the amount of tax imposed by | ||||||
| 11 | this Act to the
extent deducted from gross income in | ||||||
| 12 | the computation of taxable income
for the taxable year; | ||||||
| 13 | (C) In the case of a regulated investment company, | ||||||
| 14 | an amount equal to
the excess of (i) the net long-term | ||||||
| 15 | capital gain for the taxable year, over
(ii) the amount | ||||||
| 16 | of the capital gain dividends designated as such in | ||||||
| 17 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
| 18 | Revenue Code and any amount
designated under Section | ||||||
| 19 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
| 20 | attributable to the taxable year (this amendatory Act | ||||||
| 21 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
| 22 | law and is not a new
enactment); | ||||||
| 23 | (D) The amount of any net operating loss deduction | ||||||
| 24 | taken in arriving
at taxable income, other than a net | ||||||
| 25 | operating loss carried forward from a
taxable year | ||||||
| 26 | ending prior to December 31, 1986; | ||||||
| |||||||
| |||||||
| 1 | (E) For taxable years in which a net operating loss | ||||||
| 2 | carryback or
carryforward from a taxable year ending | ||||||
| 3 | prior to December 31, 1986 is an
element of taxable | ||||||
| 4 | income under paragraph (1) of subsection (e) or
| ||||||
| 5 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
| 6 | the amount by which
addition modifications other than | ||||||
| 7 | those provided by this subparagraph (E)
exceeded | ||||||
| 8 | subtraction modifications in such earlier taxable | ||||||
| 9 | year, with the
following limitations applied in the | ||||||
| 10 | order that they are listed: | ||||||
| 11 | (i) the addition modification relating to the | ||||||
| 12 | net operating loss
carried back or forward to the | ||||||
| 13 | taxable year from any taxable year ending
prior to | ||||||
| 14 | December 31, 1986 shall be reduced by the amount of | ||||||
| 15 | addition
modification under this subparagraph (E) | ||||||
| 16 | which related to that net operating
loss and which | ||||||
| 17 | was taken into account in calculating the base | ||||||
| 18 | income of an
earlier taxable year, and | ||||||
| 19 | (ii) the addition modification relating to the | ||||||
| 20 | net operating loss
carried back or forward to the | ||||||
| 21 | taxable year from any taxable year ending
prior to | ||||||
| 22 | December 31, 1986 shall not exceed the amount of | ||||||
| 23 | such carryback or
carryforward; | ||||||
| 24 | For taxable years in which there is a net operating | ||||||
| 25 | loss carryback or
carryforward from more than one other | ||||||
| 26 | taxable year ending prior to December
31, 1986, the | ||||||
| |||||||
| |||||||
| 1 | addition modification provided in this subparagraph | ||||||
| 2 | (E) shall
be the sum of the amounts computed | ||||||
| 3 | independently under the preceding
provisions of this | ||||||
| 4 | subparagraph (E) for each such taxable year; | ||||||
| 5 | (E-5) For taxable years ending after December 31, | ||||||
| 6 | 1997, an
amount equal to any eligible remediation costs | ||||||
| 7 | that the corporation
deducted in computing adjusted | ||||||
| 8 | gross income and for which the
corporation claims a | ||||||
| 9 | credit under subsection (l) of Section 201; | ||||||
| 10 | (E-10) For taxable years 2001 and thereafter, an | ||||||
| 11 | amount equal to the
bonus depreciation deduction taken | ||||||
| 12 | on the taxpayer's federal income tax return for the | ||||||
| 13 | taxable
year under subsection (k) of Section 168 of the | ||||||
| 14 | Internal Revenue Code; | ||||||
| 15 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
| 16 | or otherwise disposes of property for which the | ||||||
| 17 | taxpayer was required in any taxable year to
make an | ||||||
| 18 | addition modification under subparagraph (E-10), then | ||||||
| 19 | an amount equal
to the aggregate amount of the | ||||||
| 20 | deductions taken in all taxable
years under | ||||||
| 21 | subparagraph (T) with respect to that property. | ||||||
| 22 | If the taxpayer continues to own property through | ||||||
| 23 | the last day of the last tax year for which the | ||||||
| 24 | taxpayer may claim a depreciation deduction for | ||||||
| 25 | federal income tax purposes and for which the taxpayer | ||||||
| 26 | was allowed in any taxable year to make a subtraction | ||||||
| |||||||
| |||||||
| 1 | modification under subparagraph (T), then an amount | ||||||
| 2 | equal to that subtraction modification.
| ||||||
| 3 | The taxpayer is required to make the addition | ||||||
| 4 | modification under this
subparagraph
only once with | ||||||
| 5 | respect to any one piece of property; | ||||||
| 6 | (E-12) An amount equal to the amount otherwise | ||||||
| 7 | allowed as a deduction in computing base income for | ||||||
| 8 | interest paid, accrued, or incurred, directly or | ||||||
| 9 | indirectly, (i) for taxable years ending on or after | ||||||
| 10 | December 31, 2004, to a foreign person who would be a | ||||||
| 11 | member of the same unitary business group but for the | ||||||
| 12 | fact the foreign person's business activity outside | ||||||
| 13 | the United States is 80% or more of the foreign | ||||||
| 14 | person's total business activity and (ii) for taxable | ||||||
| 15 | years ending on or after December 31, 2008, to a person | ||||||
| 16 | who would be a member of the same unitary business | ||||||
| 17 | group but for the fact that the person is prohibited | ||||||
| 18 | under Section 1501(a)(27) from being included in the | ||||||
| 19 | unitary business group because he or she is ordinarily | ||||||
| 20 | required to apportion business income under different | ||||||
| 21 | subsections of Section 304. The addition modification | ||||||
| 22 | required by this subparagraph shall be reduced to the | ||||||
| 23 | extent that dividends were included in base income of | ||||||
| 24 | the unitary group for the same taxable year and | ||||||
| 25 | received by the taxpayer or by a member of the | ||||||
| 26 | taxpayer's unitary business group (including amounts | ||||||
| |||||||
| |||||||
| 1 | included in gross income pursuant to Sections 951 | ||||||
| 2 | through 964 of the Internal Revenue Code and amounts | ||||||
| 3 | included in gross income under Section 78 of the | ||||||
| 4 | Internal Revenue Code) with respect to the stock of the | ||||||
| 5 | same person to whom the interest was paid, accrued, or | ||||||
| 6 | incurred.
| ||||||
| 7 | This paragraph shall not apply to the following:
| ||||||
| 8 | (i) an item of interest paid, accrued, or | ||||||
| 9 | incurred, directly or indirectly, to a person who | ||||||
| 10 | is subject in a foreign country or state, other | ||||||
| 11 | than a state which requires mandatory unitary | ||||||
| 12 | reporting, to a tax on or measured by net income | ||||||
| 13 | with respect to such interest; or | ||||||
| 14 | (ii) an item of interest paid, accrued, or | ||||||
| 15 | incurred, directly or indirectly, to a person if | ||||||
| 16 | the taxpayer can establish, based on a | ||||||
| 17 | preponderance of the evidence, both of the | ||||||
| 18 | following: | ||||||
| 19 | (a) the person, during the same taxable | ||||||
| 20 | year, paid, accrued, or incurred, the interest | ||||||
| 21 | to a person that is not a related member, and | ||||||
| 22 | (b) the transaction giving rise to the | ||||||
| 23 | interest expense between the taxpayer and the | ||||||
| 24 | person did not have as a principal purpose the | ||||||
| 25 | avoidance of Illinois income tax, and is paid | ||||||
| 26 | pursuant to a contract or agreement that | ||||||
| |||||||
| |||||||
| 1 | reflects an arm's-length interest rate and | ||||||
| 2 | terms; or
| ||||||
| 3 | (iii) the taxpayer can establish, based on | ||||||
| 4 | clear and convincing evidence, that the interest | ||||||
| 5 | paid, accrued, or incurred relates to a contract or | ||||||
| 6 | agreement entered into at arm's-length rates and | ||||||
| 7 | terms and the principal purpose for the payment is | ||||||
| 8 | not federal or Illinois tax avoidance; or
| ||||||
| 9 | (iv) an item of interest paid, accrued, or | ||||||
| 10 | incurred, directly or indirectly, to a person if | ||||||
| 11 | the taxpayer establishes by clear and convincing | ||||||
| 12 | evidence that the adjustments are unreasonable; or | ||||||
| 13 | if the taxpayer and the Director agree in writing | ||||||
| 14 | to the application or use of an alternative method | ||||||
| 15 | of apportionment under Section 304(f).
| ||||||
| 16 | Nothing in this subsection shall preclude the | ||||||
| 17 | Director from making any other adjustment | ||||||
| 18 | otherwise allowed under Section 404 of this Act for | ||||||
| 19 | any tax year beginning after the effective date of | ||||||
| 20 | this amendment provided such adjustment is made | ||||||
| 21 | pursuant to regulation adopted by the Department | ||||||
| 22 | and such regulations provide methods and standards | ||||||
| 23 | by which the Department will utilize its authority | ||||||
| 24 | under Section 404 of this Act;
| ||||||
| 25 | (E-13) An amount equal to the amount of intangible | ||||||
| 26 | expenses and costs otherwise allowed as a deduction in | ||||||
| |||||||
| |||||||
| 1 | computing base income, and that were paid, accrued, or | ||||||
| 2 | incurred, directly or indirectly, (i) for taxable | ||||||
| 3 | years ending on or after December 31, 2004, to a | ||||||
| 4 | foreign person who would be a member of the same | ||||||
| 5 | unitary business group but for the fact that the | ||||||
| 6 | foreign person's business activity outside the United | ||||||
| 7 | States is 80% or more of that person's total business | ||||||
| 8 | activity and (ii) for taxable years ending on or after | ||||||
| 9 | December 31, 2008, to a person who would be a member of | ||||||
| 10 | the same unitary business group but for the fact that | ||||||
| 11 | the person is prohibited under Section 1501(a)(27) | ||||||
| 12 | from being included in the unitary business group | ||||||
| 13 | because he or she is ordinarily required to apportion | ||||||
| 14 | business income under different subsections of Section | ||||||
| 15 | 304. The addition modification required by this | ||||||
| 16 | subparagraph shall be reduced to the extent that | ||||||
| 17 | dividends were included in base income of the unitary | ||||||
| 18 | group for the same taxable year and received by the | ||||||
| 19 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 20 | business group (including amounts included in gross | ||||||
| 21 | income pursuant to Sections 951 through 964 of the | ||||||
| 22 | Internal Revenue Code and amounts included in gross | ||||||
| 23 | income under Section 78 of the Internal Revenue Code) | ||||||
| 24 | with respect to the stock of the same person to whom | ||||||
| 25 | the intangible expenses and costs were directly or | ||||||
| 26 | indirectly paid, incurred, or accrued. The preceding | ||||||
| |||||||
| |||||||
| 1 | sentence shall not apply to the extent that the same | ||||||
| 2 | dividends caused a reduction to the addition | ||||||
| 3 | modification required under Section 203(b)(2)(E-12) of | ||||||
| 4 | this Act.
As used in this subparagraph, the term | ||||||
| 5 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 6 | losses, and costs for, or related to, the direct or | ||||||
| 7 | indirect acquisition, use, maintenance or management, | ||||||
| 8 | ownership, sale, exchange, or any other disposition of | ||||||
| 9 | intangible property; (2) losses incurred, directly or | ||||||
| 10 | indirectly, from factoring transactions or discounting | ||||||
| 11 | transactions; (3) royalty, patent, technical, and | ||||||
| 12 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 13 | similar expenses and costs.
For purposes of this | ||||||
| 14 | subparagraph, "intangible property" includes patents, | ||||||
| 15 | patent applications, trade names, trademarks, service | ||||||
| 16 | marks, copyrights, mask works, trade secrets, and | ||||||
| 17 | similar types of intangible assets. | ||||||
| 18 | This paragraph shall not apply to the following: | ||||||
| 19 | (i) any item of intangible expenses or costs | ||||||
| 20 | paid, accrued, or incurred, directly or | ||||||
| 21 | indirectly, from a transaction with a person who is | ||||||
| 22 | subject in a foreign country or state, other than a | ||||||
| 23 | state which requires mandatory unitary reporting, | ||||||
| 24 | to a tax on or measured by net income with respect | ||||||
| 25 | to such item; or | ||||||
| 26 | (ii) any item of intangible expense or cost | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred, directly or | ||||||
| 2 | indirectly, if the taxpayer can establish, based | ||||||
| 3 | on a preponderance of the evidence, both of the | ||||||
| 4 | following: | ||||||
| 5 | (a) the person during the same taxable | ||||||
| 6 | year paid, accrued, or incurred, the | ||||||
| 7 | intangible expense or cost to a person that is | ||||||
| 8 | not a related member, and | ||||||
| 9 | (b) the transaction giving rise to the | ||||||
| 10 | intangible expense or cost between the | ||||||
| 11 | taxpayer and the person did not have as a | ||||||
| 12 | principal purpose the avoidance of Illinois | ||||||
| 13 | income tax, and is paid pursuant to a contract | ||||||
| 14 | or agreement that reflects arm's-length terms; | ||||||
| 15 | or | ||||||
| 16 | (iii) any item of intangible expense or cost | ||||||
| 17 | paid, accrued, or incurred, directly or | ||||||
| 18 | indirectly, from a transaction with a person if the | ||||||
| 19 | taxpayer establishes by clear and convincing | ||||||
| 20 | evidence, that the adjustments are unreasonable; | ||||||
| 21 | or if the taxpayer and the Director agree in | ||||||
| 22 | writing to the application or use of an alternative | ||||||
| 23 | method of apportionment under Section 304(f);
| ||||||
| 24 | Nothing in this subsection shall preclude the | ||||||
| 25 | Director from making any other adjustment | ||||||
| 26 | otherwise allowed under Section 404 of this Act for | ||||||
| |||||||
| |||||||
| 1 | any tax year beginning after the effective date of | ||||||
| 2 | this amendment provided such adjustment is made | ||||||
| 3 | pursuant to regulation adopted by the Department | ||||||
| 4 | and such regulations provide methods and standards | ||||||
| 5 | by which the Department will utilize its authority | ||||||
| 6 | under Section 404 of this Act;
| ||||||
| 7 | (E-14) For taxable years ending on or after | ||||||
| 8 | December 31, 2008, an amount equal to the amount of | ||||||
| 9 | insurance premium expenses and costs otherwise allowed | ||||||
| 10 | as a deduction in computing base income, and that were | ||||||
| 11 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 12 | a person who would be a member of the same unitary | ||||||
| 13 | business group but for the fact that the person is | ||||||
| 14 | prohibited under Section 1501(a)(27) from being | ||||||
| 15 | included in the unitary business group because he or | ||||||
| 16 | she is ordinarily required to apportion business | ||||||
| 17 | income under different subsections of Section 304. The | ||||||
| 18 | addition modification required by this subparagraph | ||||||
| 19 | shall be reduced to the extent that dividends were | ||||||
| 20 | included in base income of the unitary group for the | ||||||
| 21 | same taxable year and received by the taxpayer or by a | ||||||
| 22 | member of the taxpayer's unitary business group | ||||||
| 23 | (including amounts included in gross income under | ||||||
| 24 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 25 | and amounts included in gross income under Section 78 | ||||||
| 26 | of the Internal Revenue Code) with respect to the stock | ||||||
| |||||||
| |||||||
| 1 | of the same person to whom the premiums and costs were | ||||||
| 2 | directly or indirectly paid, incurred, or accrued. The | ||||||
| 3 | preceding sentence does not apply to the extent that | ||||||
| 4 | the same dividends caused a reduction to the addition | ||||||
| 5 | modification required under Section 203(b)(2)(E-12) or | ||||||
| 6 | Section 203(b)(2)(E-13) of this Act;
| ||||||
| 7 | (E-15) For taxable years beginning after December | ||||||
| 8 | 31, 2008, any deduction for dividends paid by a captive | ||||||
| 9 | real estate investment trust that is allowed to a real | ||||||
| 10 | estate investment trust under Section 857(b)(2)(B) of | ||||||
| 11 | the Internal Revenue Code for dividends paid; | ||||||
| 12 | (E-16) An amount equal to the credit allowable to | ||||||
| 13 | the taxpayer under Section 218(a) of this Act, | ||||||
| 14 | determined without regard to Section 218(c) of this | ||||||
| 15 | Act; | ||||||
| 16 | (E-17) For taxable years ending on or after | ||||||
| 17 | December 31, 2017 and ending on or before December 31, | ||||||
| 18 | 2018, an amount equal to the deduction allowed under | ||||||
| 19 | Section 199 of the Internal Revenue Code for the | ||||||
| 20 | taxable year; | ||||||
| 21 | and by deducting from the total so obtained the sum of the | ||||||
| 22 | following
amounts: | ||||||
| 23 | (F) An amount equal to the amount of any tax | ||||||
| 24 | imposed by this Act
which was refunded to the taxpayer | ||||||
| 25 | and included in such total for the
taxable year; | ||||||
| 26 | (G) An amount equal to any amount included in such | ||||||
| |||||||
| |||||||
| 1 | total under
Section 78 of the Internal Revenue Code; | ||||||
| 2 | (H) In the case of a regulated investment company, | ||||||
| 3 | an amount equal
to the amount of exempt interest | ||||||
| 4 | dividends as defined in subsection (b)(5) of Section | ||||||
| 5 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
| 6 | for the taxable year; | ||||||
| 7 | (I) With the exception of any amounts subtracted | ||||||
| 8 | under subparagraph
(J),
an amount equal to the sum of | ||||||
| 9 | all amounts disallowed as
deductions by (i) Sections | ||||||
| 10 | 171(a)(2), and 265(a)(2) and amounts disallowed as
| ||||||
| 11 | interest expense by Section 291(a)(3) of the Internal | ||||||
| 12 | Revenue Code, and all amounts of expenses allocable to | ||||||
| 13 | interest and
disallowed as deductions by Section | ||||||
| 14 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
| 15 | taxable years
ending on or after August 13, 1999, | ||||||
| 16 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
| 17 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
| 18 | for tax years ending on or after December 31, 2011, | ||||||
| 19 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
| 20 | of the Internal Revenue Code and, for taxable years | ||||||
| 21 | ending on or after December 31, 2008, any amount | ||||||
| 22 | included in gross income under Section 87 of the | ||||||
| 23 | Internal Revenue Code and the policyholders' share of | ||||||
| 24 | tax-exempt interest of a life insurance company under | ||||||
| 25 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
| 26 | the case of a life insurance company with gross income | ||||||
| |||||||
| |||||||
| 1 | from a decrease in reserves for the tax year) or | ||||||
| 2 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
| 3 | the case of a life insurance company allowed a | ||||||
| 4 | deduction for an increase in reserves for the tax | ||||||
| 5 | year); the
provisions of this
subparagraph are exempt | ||||||
| 6 | from the provisions of Section 250; | ||||||
| 7 | (J) An amount equal to all amounts included in such | ||||||
| 8 | total which are
exempt from taxation by this State | ||||||
| 9 | either by reason of its statutes or
Constitution
or by | ||||||
| 10 | reason of the Constitution, treaties or statutes of the | ||||||
| 11 | United States;
provided that, in the case of any | ||||||
| 12 | statute of this State that exempts income
derived from | ||||||
| 13 | bonds or other obligations from the tax imposed under | ||||||
| 14 | this Act,
the amount exempted shall be the interest net | ||||||
| 15 | of bond premium amortization; | ||||||
| 16 | (K) An amount equal to those dividends included in | ||||||
| 17 | such total
which were paid by a corporation which | ||||||
| 18 | conducts
business operations in a River Edge | ||||||
| 19 | Redevelopment Zone or zones created under the River | ||||||
| 20 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 21 | all of its
operations in a River Edge Redevelopment | ||||||
| 22 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
| 23 | provisions of Section 250; | ||||||
| 24 | (L) An amount equal to those dividends included in | ||||||
| 25 | such total that
were paid by a corporation that | ||||||
| 26 | conducts business operations in a federally
designated | ||||||
| |||||||
| |||||||
| 1 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
| 2 | High Impact
Business located in Illinois; provided | ||||||
| 3 | that dividends eligible for the
deduction provided in | ||||||
| 4 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
| 5 | shall not be eligible for the deduction provided under | ||||||
| 6 | this subparagraph
(L); | ||||||
| 7 | (M) For any taxpayer that is a financial | ||||||
| 8 | organization within the meaning
of Section 304(c) of | ||||||
| 9 | this Act, an amount included in such total as interest
| ||||||
| 10 | income from a loan or loans made by such taxpayer to a | ||||||
| 11 | borrower, to the extent
that such a loan is secured by | ||||||
| 12 | property which is eligible for the River Edge | ||||||
| 13 | Redevelopment Zone Investment Credit. To determine the | ||||||
| 14 | portion of a loan or loans that is
secured by property | ||||||
| 15 | eligible for a Section 201(f) investment
credit to the | ||||||
| 16 | borrower, the entire principal amount of the loan or | ||||||
| 17 | loans
between the taxpayer and the borrower should be | ||||||
| 18 | divided into the basis of the
Section 201(f) investment | ||||||
| 19 | credit property which secures the
loan or loans, using | ||||||
| 20 | for this purpose the original basis of such property on
| ||||||
| 21 | the date that it was placed in service in the River | ||||||
| 22 | Edge Redevelopment Zone. The subtraction modification | ||||||
| 23 | available to the taxpayer in any
year under this | ||||||
| 24 | subsection shall be that portion of the total interest | ||||||
| 25 | paid
by the borrower with respect to such loan | ||||||
| 26 | attributable to the eligible
property as calculated | ||||||
| |||||||
| |||||||
| 1 | under the previous sentence. This subparagraph (M) is | ||||||
| 2 | exempt from the provisions of Section 250; | ||||||
| 3 | (M-1) For any taxpayer that is a financial | ||||||
| 4 | organization within the
meaning of Section 304(c) of | ||||||
| 5 | this Act, an amount included in such total as
interest | ||||||
| 6 | income from a loan or loans made by such taxpayer to a | ||||||
| 7 | borrower,
to the extent that such a loan is secured by | ||||||
| 8 | property which is eligible for
the High Impact Business | ||||||
| 9 | Investment Credit. To determine the portion of a
loan | ||||||
| 10 | or loans that is secured by property eligible for a | ||||||
| 11 | Section 201(h) investment credit to the borrower, the | ||||||
| 12 | entire principal amount of
the loan or loans between | ||||||
| 13 | the taxpayer and the borrower should be divided into
| ||||||
| 14 | the basis of the Section 201(h) investment credit | ||||||
| 15 | property which
secures the loan or loans, using for | ||||||
| 16 | this purpose the original basis of such
property on the | ||||||
| 17 | date that it was placed in service in a federally | ||||||
| 18 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
| 19 | Illinois. No taxpayer that is
eligible for the | ||||||
| 20 | deduction provided in subparagraph (M) of paragraph | ||||||
| 21 | (2) of
this subsection shall be eligible for the | ||||||
| 22 | deduction provided under this
subparagraph (M-1). The | ||||||
| 23 | subtraction modification available to taxpayers in
any | ||||||
| 24 | year under this subsection shall be that portion of the | ||||||
| 25 | total interest
paid by the borrower with respect to | ||||||
| 26 | such loan attributable to the eligible
property as | ||||||
| |||||||
| |||||||
| 1 | calculated under the previous sentence; | ||||||
| 2 | (N) Two times any contribution made during the | ||||||
| 3 | taxable year to a
designated zone organization to the | ||||||
| 4 | extent that the contribution (i)
qualifies as a | ||||||
| 5 | charitable contribution under subsection (c) of | ||||||
| 6 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
| 7 | by its terms, be used for a
project approved by the | ||||||
| 8 | Department of Commerce and Economic Opportunity under | ||||||
| 9 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
| 10 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
| 11 | This subparagraph (N) is exempt from the provisions of | ||||||
| 12 | Section 250; | ||||||
| 13 | (O) An amount equal to: (i) 85% for taxable years | ||||||
| 14 | ending on or before
December 31, 1992, or, a percentage | ||||||
| 15 | equal to the percentage allowable under
Section | ||||||
| 16 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
| 17 | taxable years ending
after December 31, 1992, of the | ||||||
| 18 | amount by which dividends included in taxable
income | ||||||
| 19 | and received from a corporation that is not created or | ||||||
| 20 | organized under
the laws of the United States or any | ||||||
| 21 | state or political subdivision thereof,
including, for | ||||||
| 22 | taxable years ending on or after December 31, 1988, | ||||||
| 23 | dividends
received or deemed received or paid or deemed | ||||||
| 24 | paid under Sections 951 through
965 of the Internal | ||||||
| 25 | Revenue Code, exceed the amount of the modification
| ||||||
| 26 | provided under subparagraph (G) of paragraph (2) of | ||||||
| |||||||
| |||||||
| 1 | this subsection (b) which
is related to such dividends, | ||||||
| 2 | and including, for taxable years ending on or after | ||||||
| 3 | December 31, 2008, dividends received from a captive | ||||||
| 4 | real estate investment trust; plus (ii) 100% of the | ||||||
| 5 | amount by which dividends,
included in taxable income | ||||||
| 6 | and received, including, for taxable years ending on
or | ||||||
| 7 | after December 31, 1988, dividends received or deemed | ||||||
| 8 | received or paid or
deemed paid under Sections 951 | ||||||
| 9 | through 964 of the Internal Revenue Code and including, | ||||||
| 10 | for taxable years ending on or after December 31, 2008, | ||||||
| 11 | dividends received from a captive real estate | ||||||
| 12 | investment trust, from
any such corporation specified | ||||||
| 13 | in clause (i) that would but for the provisions
of | ||||||
| 14 | Section 1504(b)(3) of the Internal Revenue Code be | ||||||
| 15 | treated as a member of
the affiliated group which | ||||||
| 16 | includes the dividend recipient, exceed the amount
of | ||||||
| 17 | the modification provided under subparagraph (G) of | ||||||
| 18 | paragraph (2) of this
subsection (b) which is related | ||||||
| 19 | to such dividends. This subparagraph (O) is exempt from | ||||||
| 20 | the provisions of Section 250 of this Act; | ||||||
| 21 | (P) An amount equal to any contribution made to a | ||||||
| 22 | job training project
established pursuant to the Tax | ||||||
| 23 | Increment Allocation Redevelopment Act; | ||||||
| 24 | (Q) An amount equal to the amount of the deduction | ||||||
| 25 | used to compute the
federal income tax credit for | ||||||
| 26 | restoration of substantial amounts held under
claim of | ||||||
| |||||||
| |||||||
| 1 | right for the taxable year pursuant to Section 1341 of | ||||||
| 2 | the
Internal Revenue Code; | ||||||
| 3 | (R) On and after July 20, 1999, in the case of an | ||||||
| 4 | attorney-in-fact with respect to whom an
interinsurer | ||||||
| 5 | or a reciprocal insurer has made the election under | ||||||
| 6 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
| 7 | 835, an amount equal to the excess, if
any, of the | ||||||
| 8 | amounts paid or incurred by that interinsurer or | ||||||
| 9 | reciprocal insurer
in the taxable year to the | ||||||
| 10 | attorney-in-fact over the deduction allowed to that
| ||||||
| 11 | interinsurer or reciprocal insurer with respect to the | ||||||
| 12 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
| 13 | Revenue Code for the taxable year; the provisions of | ||||||
| 14 | this subparagraph are exempt from the provisions of | ||||||
| 15 | Section 250; | ||||||
| 16 | (S) For taxable years ending on or after December | ||||||
| 17 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
| 18 | amount equal to all amounts of income allocable to a
| ||||||
| 19 | shareholder subject to the Personal Property Tax | ||||||
| 20 | Replacement Income Tax imposed
by subsections (c) and | ||||||
| 21 | (d) of Section 201 of this Act, including amounts
| ||||||
| 22 | allocable to organizations exempt from federal income | ||||||
| 23 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
| 24 | Code. This subparagraph (S) is exempt from
the | ||||||
| 25 | provisions of Section 250; | ||||||
| 26 | (T) For taxable years 2001 and thereafter, for the | ||||||
| |||||||
| |||||||
| 1 | taxable year in
which the bonus depreciation deduction
| ||||||
| 2 | is taken on the taxpayer's federal income tax return | ||||||
| 3 | under
subsection (k) of Section 168 of the Internal | ||||||
| 4 | Revenue Code and for each
applicable taxable year | ||||||
| 5 | thereafter, an amount equal to "x", where: | ||||||
| 6 | (1) "y" equals the amount of the depreciation | ||||||
| 7 | deduction taken for the
taxable year
on the | ||||||
| 8 | taxpayer's federal income tax return on property | ||||||
| 9 | for which the bonus
depreciation deduction
was | ||||||
| 10 | taken in any year under subsection (k) of Section | ||||||
| 11 | 168 of the Internal
Revenue Code, but not including | ||||||
| 12 | the bonus depreciation deduction; | ||||||
| 13 | (2) for taxable years ending on or before | ||||||
| 14 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 15 | and then divided by 70 (or "y"
multiplied by | ||||||
| 16 | 0.429); and | ||||||
| 17 | (3) for taxable years ending after December | ||||||
| 18 | 31, 2005: | ||||||
| 19 | (i) for property on which a bonus | ||||||
| 20 | depreciation deduction of 30% of the adjusted | ||||||
| 21 | basis was taken, "x" equals "y" multiplied by | ||||||
| 22 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
| 23 | 0.429); and | ||||||
| 24 | (ii) for property on which a bonus | ||||||
| 25 | depreciation deduction of 50% of the adjusted | ||||||
| 26 | basis was taken, "x" equals "y" multiplied by | ||||||
| |||||||
| |||||||
| 1 | 1.0. | ||||||
| 2 | The aggregate amount deducted under this | ||||||
| 3 | subparagraph in all taxable
years for any one piece of | ||||||
| 4 | property may not exceed the amount of the bonus
| ||||||
| 5 | depreciation deduction
taken on that property on the | ||||||
| 6 | taxpayer's federal income tax return under
subsection | ||||||
| 7 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 8 | subparagraph (T) is exempt from the provisions of | ||||||
| 9 | Section 250; | ||||||
| 10 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
| 11 | otherwise disposes of
property for which the taxpayer | ||||||
| 12 | was required in any taxable year to make an
addition | ||||||
| 13 | modification under subparagraph (E-10), then an amount | ||||||
| 14 | equal to that
addition modification. | ||||||
| 15 | If the taxpayer continues to own property through | ||||||
| 16 | the last day of the last tax year for which the | ||||||
| 17 | taxpayer may claim a depreciation deduction for | ||||||
| 18 | federal income tax purposes and for which the taxpayer | ||||||
| 19 | was required in any taxable year to make an addition | ||||||
| 20 | modification under subparagraph (E-10), then an amount | ||||||
| 21 | equal to that addition modification.
| ||||||
| 22 | The taxpayer is allowed to take the deduction under | ||||||
| 23 | this subparagraph
only once with respect to any one | ||||||
| 24 | piece of property. | ||||||
| 25 | This subparagraph (U) is exempt from the | ||||||
| 26 | provisions of Section 250; | ||||||
| |||||||
| |||||||
| 1 | (V) The amount of: (i) any interest income (net of | ||||||
| 2 | the deductions allocable thereto) taken into account | ||||||
| 3 | for the taxable year with respect to a transaction with | ||||||
| 4 | a taxpayer that is required to make an addition | ||||||
| 5 | modification with respect to such transaction under | ||||||
| 6 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 7 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 8 | the amount of such addition modification,
(ii) any | ||||||
| 9 | income from intangible property (net of the deductions | ||||||
| 10 | allocable thereto) taken into account for the taxable | ||||||
| 11 | year with respect to a transaction with a taxpayer that | ||||||
| 12 | is required to make an addition modification with | ||||||
| 13 | respect to such transaction under Section | ||||||
| 14 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 15 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 16 | addition modification, and (iii) any insurance premium | ||||||
| 17 | income (net of deductions allocable thereto) taken | ||||||
| 18 | into account for the taxable year with respect to a | ||||||
| 19 | transaction with a taxpayer that is required to make an | ||||||
| 20 | addition modification with respect to such transaction | ||||||
| 21 | under Section 203(a)(2)(D-19), Section | ||||||
| 22 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
| 23 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
| 24 | addition modification. This subparagraph (V) is exempt | ||||||
| 25 | from the provisions of Section 250;
| ||||||
| 26 | (W) An amount equal to the interest income taken | ||||||
| |||||||
| |||||||
| 1 | into account for the taxable year (net of the | ||||||
| 2 | deductions allocable thereto) with respect to | ||||||
| 3 | transactions with (i) a foreign person who would be a | ||||||
| 4 | member of the taxpayer's unitary business group but for | ||||||
| 5 | the fact that the foreign person's business activity | ||||||
| 6 | outside the United States is 80% or more of that | ||||||
| 7 | person's total business activity and (ii) for taxable | ||||||
| 8 | years ending on or after December 31, 2008, to a person | ||||||
| 9 | who would be a member of the same unitary business | ||||||
| 10 | group but for the fact that the person is prohibited | ||||||
| 11 | under Section 1501(a)(27) from being included in the | ||||||
| 12 | unitary business group because he or she is ordinarily | ||||||
| 13 | required to apportion business income under different | ||||||
| 14 | subsections of Section 304, but not to exceed the | ||||||
| 15 | addition modification required to be made for the same | ||||||
| 16 | taxable year under Section 203(b)(2)(E-12) for | ||||||
| 17 | interest paid, accrued, or incurred, directly or | ||||||
| 18 | indirectly, to the same person. This subparagraph (W) | ||||||
| 19 | is exempt from the provisions of Section 250;
| ||||||
| 20 | (X) An amount equal to the income from intangible | ||||||
| 21 | property taken into account for the taxable year (net | ||||||
| 22 | of the deductions allocable thereto) with respect to | ||||||
| 23 | transactions with (i) a foreign person who would be a | ||||||
| 24 | member of the taxpayer's unitary business group but for | ||||||
| 25 | the fact that the foreign person's business activity | ||||||
| 26 | outside the United States is 80% or more of that | ||||||
| |||||||
| |||||||
| 1 | person's total business activity and (ii) for taxable | ||||||
| 2 | years ending on or after December 31, 2008, to a person | ||||||
| 3 | who would be a member of the same unitary business | ||||||
| 4 | group but for the fact that the person is prohibited | ||||||
| 5 | under Section 1501(a)(27) from being included in the | ||||||
| 6 | unitary business group because he or she is ordinarily | ||||||
| 7 | required to apportion business income under different | ||||||
| 8 | subsections of Section 304, but not to exceed the | ||||||
| 9 | addition modification required to be made for the same | ||||||
| 10 | taxable year under Section 203(b)(2)(E-13) for | ||||||
| 11 | intangible expenses and costs paid, accrued, or | ||||||
| 12 | incurred, directly or indirectly, to the same foreign | ||||||
| 13 | person. This subparagraph (X) is exempt from the | ||||||
| 14 | provisions of Section 250;
| ||||||
| 15 | (Y) For taxable years ending on or after December | ||||||
| 16 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 17 | add back any insurance premiums under Section | ||||||
| 18 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
| 19 | that part of a reimbursement received from the | ||||||
| 20 | insurance company equal to the amount of the expense or | ||||||
| 21 | loss (including expenses incurred by the insurance | ||||||
| 22 | company) that would have been taken into account as a | ||||||
| 23 | deduction for federal income tax purposes if the | ||||||
| 24 | expense or loss had been uninsured. If a taxpayer makes | ||||||
| 25 | the election provided for by this subparagraph (Y), the | ||||||
| 26 | insurer to which the premiums were paid must add back | ||||||
| |||||||
| |||||||
| 1 | to income the amount subtracted by the taxpayer | ||||||
| 2 | pursuant to this subparagraph (Y). This subparagraph | ||||||
| 3 | (Y) is exempt from the provisions of Section 250; and | ||||||
| 4 | (Z) The difference between the nondeductible | ||||||
| 5 | controlled foreign corporation dividends under Section | ||||||
| 6 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
| 7 | income of the taxpayer, computed without regard to | ||||||
| 8 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
| 9 | without regard to any net operating loss deduction. | ||||||
| 10 | This subparagraph (Z) is exempt from the provisions of | ||||||
| 11 | Section 250. | ||||||
| 12 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
| 13 | "gross income"
in the case of a life insurance company, for | ||||||
| 14 | tax years ending on and after
December 31, 1994,
and prior | ||||||
| 15 | to December 31, 2011, shall mean the gross investment | ||||||
| 16 | income for the taxable year and, for tax years ending on or | ||||||
| 17 | after December 31, 2011, shall mean all amounts included in | ||||||
| 18 | life insurance gross income under Section 803(a)(3) of the | ||||||
| 19 | Internal Revenue Code.
| ||||||
| 20 | (c) Trusts and estates. | ||||||
| 21 | (1) In general. In the case of a trust or estate, base | ||||||
| 22 | income means
an amount equal to the taxpayer's taxable | ||||||
| 23 | income for the taxable year as
modified by paragraph (2). | ||||||
| 24 | (2) Modifications. Subject to the provisions of | ||||||
| 25 | paragraph (3), the
taxable income referred to in paragraph | ||||||
| |||||||
| |||||||
| 1 | (1) shall be modified by adding
thereto the sum of the | ||||||
| 2 | following amounts: | ||||||
| 3 | (A) An amount equal to all amounts paid or accrued | ||||||
| 4 | to the taxpayer
as interest or dividends during the | ||||||
| 5 | taxable year to the extent excluded
from gross income | ||||||
| 6 | in the computation of taxable income; | ||||||
| 7 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
| 8 | trust which, under
its governing instrument, is | ||||||
| 9 | required to distribute all of its income
currently, | ||||||
| 10 | $300; and (iii) any other trust, $100, but in each such | ||||||
| 11 | case,
only to the extent such amount was deducted in | ||||||
| 12 | the computation of
taxable income; | ||||||
| 13 | (C) An amount equal to the amount of tax imposed by | ||||||
| 14 | this Act to the
extent deducted from gross income in | ||||||
| 15 | the computation of taxable income
for the taxable year; | ||||||
| 16 | (D) The amount of any net operating loss deduction | ||||||
| 17 | taken in arriving at
taxable income, other than a net | ||||||
| 18 | operating loss carried forward from a
taxable year | ||||||
| 19 | ending prior to December 31, 1986; | ||||||
| 20 | (E) For taxable years in which a net operating loss | ||||||
| 21 | carryback or
carryforward from a taxable year ending | ||||||
| 22 | prior to December 31, 1986 is an
element of taxable | ||||||
| 23 | income under paragraph (1) of subsection (e) or | ||||||
| 24 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
| 25 | the amount by which addition
modifications other than | ||||||
| 26 | those provided by this subparagraph (E) exceeded
| ||||||
| |||||||
| |||||||
| 1 | subtraction modifications in such taxable year, with | ||||||
| 2 | the following limitations
applied in the order that | ||||||
| 3 | they are listed: | ||||||
| 4 | (i) the addition modification relating to the | ||||||
| 5 | net operating loss
carried back or forward to the | ||||||
| 6 | taxable year from any taxable year ending
prior to | ||||||
| 7 | December 31, 1986 shall be reduced by the amount of | ||||||
| 8 | addition
modification under this subparagraph (E) | ||||||
| 9 | which related to that net
operating loss and which | ||||||
| 10 | was taken into account in calculating the base
| ||||||
| 11 | income of an earlier taxable year, and | ||||||
| 12 | (ii) the addition modification relating to the | ||||||
| 13 | net operating loss
carried back or forward to the | ||||||
| 14 | taxable year from any taxable year ending
prior to | ||||||
| 15 | December 31, 1986 shall not exceed the amount of | ||||||
| 16 | such carryback or
carryforward; | ||||||
| 17 | For taxable years in which there is a net operating | ||||||
| 18 | loss carryback or
carryforward from more than one other | ||||||
| 19 | taxable year ending prior to December
31, 1986, the | ||||||
| 20 | addition modification provided in this subparagraph | ||||||
| 21 | (E) shall
be the sum of the amounts computed | ||||||
| 22 | independently under the preceding
provisions of this | ||||||
| 23 | subparagraph (E) for each such taxable year; | ||||||
| 24 | (F) For taxable years ending on or after January 1, | ||||||
| 25 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
| 26 | Section 164 of the Internal Revenue
Code if the trust | ||||||
| |||||||
| |||||||
| 1 | or estate is claiming the same tax for purposes of the
| ||||||
| 2 | Illinois foreign tax credit under Section 601 of this | ||||||
| 3 | Act; | ||||||
| 4 | (G) An amount equal to the amount of the capital | ||||||
| 5 | gain deduction
allowable under the Internal Revenue | ||||||
| 6 | Code, to the extent deducted from
gross income in the | ||||||
| 7 | computation of taxable income; | ||||||
| 8 | (G-5) For taxable years ending after December 31, | ||||||
| 9 | 1997, an
amount equal to any eligible remediation costs | ||||||
| 10 | that the trust or estate
deducted in computing adjusted | ||||||
| 11 | gross income and for which the trust
or estate claims a | ||||||
| 12 | credit under subsection (l) of Section 201; | ||||||
| 13 | (G-10) For taxable years 2001 and thereafter, an | ||||||
| 14 | amount equal to the
bonus depreciation deduction taken | ||||||
| 15 | on the taxpayer's federal income tax return for the | ||||||
| 16 | taxable
year under subsection (k) of Section 168 of the | ||||||
| 17 | Internal Revenue Code; and | ||||||
| 18 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
| 19 | or otherwise disposes of property for which the | ||||||
| 20 | taxpayer was required in any taxable year to
make an | ||||||
| 21 | addition modification under subparagraph (G-10), then | ||||||
| 22 | an amount equal
to the aggregate amount of the | ||||||
| 23 | deductions taken in all taxable
years under | ||||||
| 24 | subparagraph (R) with respect to that property. | ||||||
| 25 | If the taxpayer continues to own property through | ||||||
| 26 | the last day of the last tax year for which the | ||||||
| |||||||
| |||||||
| 1 | taxpayer may claim a depreciation deduction for | ||||||
| 2 | federal income tax purposes and for which the taxpayer | ||||||
| 3 | was allowed in any taxable year to make a subtraction | ||||||
| 4 | modification under subparagraph (R), then an amount | ||||||
| 5 | equal to that subtraction modification.
| ||||||
| 6 | The taxpayer is required to make the addition | ||||||
| 7 | modification under this
subparagraph
only once with | ||||||
| 8 | respect to any one piece of property; | ||||||
| 9 | (G-12) An amount equal to the amount otherwise | ||||||
| 10 | allowed as a deduction in computing base income for | ||||||
| 11 | interest paid, accrued, or incurred, directly or | ||||||
| 12 | indirectly, (i) for taxable years ending on or after | ||||||
| 13 | December 31, 2004, to a foreign person who would be a | ||||||
| 14 | member of the same unitary business group but for the | ||||||
| 15 | fact that the foreign person's business activity | ||||||
| 16 | outside the United States is 80% or more of the foreign | ||||||
| 17 | person's total business activity and (ii) for taxable | ||||||
| 18 | years ending on or after December 31, 2008, to a person | ||||||
| 19 | who would be a member of the same unitary business | ||||||
| 20 | group but for the fact that the person is prohibited | ||||||
| 21 | under Section 1501(a)(27) from being included in the | ||||||
| 22 | unitary business group because he or she is ordinarily | ||||||
| 23 | required to apportion business income under different | ||||||
| 24 | subsections of Section 304. The addition modification | ||||||
| 25 | required by this subparagraph shall be reduced to the | ||||||
| 26 | extent that dividends were included in base income of | ||||||
| |||||||
| |||||||
| 1 | the unitary group for the same taxable year and | ||||||
| 2 | received by the taxpayer or by a member of the | ||||||
| 3 | taxpayer's unitary business group (including amounts | ||||||
| 4 | included in gross income pursuant to Sections 951 | ||||||
| 5 | through 964 of the Internal Revenue Code and amounts | ||||||
| 6 | included in gross income under Section 78 of the | ||||||
| 7 | Internal Revenue Code) with respect to the stock of the | ||||||
| 8 | same person to whom the interest was paid, accrued, or | ||||||
| 9 | incurred.
| ||||||
| 10 | This paragraph shall not apply to the following:
| ||||||
| 11 | (i) an item of interest paid, accrued, or | ||||||
| 12 | incurred, directly or indirectly, to a person who | ||||||
| 13 | is subject in a foreign country or state, other | ||||||
| 14 | than a state which requires mandatory unitary | ||||||
| 15 | reporting, to a tax on or measured by net income | ||||||
| 16 | with respect to such interest; or | ||||||
| 17 | (ii) an item of interest paid, accrued, or | ||||||
| 18 | incurred, directly or indirectly, to a person if | ||||||
| 19 | the taxpayer can establish, based on a | ||||||
| 20 | preponderance of the evidence, both of the | ||||||
| 21 | following: | ||||||
| 22 | (a) the person, during the same taxable | ||||||
| 23 | year, paid, accrued, or incurred, the interest | ||||||
| 24 | to a person that is not a related member, and | ||||||
| 25 | (b) the transaction giving rise to the | ||||||
| 26 | interest expense between the taxpayer and the | ||||||
| |||||||
| |||||||
| 1 | person did not have as a principal purpose the | ||||||
| 2 | avoidance of Illinois income tax, and is paid | ||||||
| 3 | pursuant to a contract or agreement that | ||||||
| 4 | reflects an arm's-length interest rate and | ||||||
| 5 | terms; or
| ||||||
| 6 | (iii) the taxpayer can establish, based on | ||||||
| 7 | clear and convincing evidence, that the interest | ||||||
| 8 | paid, accrued, or incurred relates to a contract or | ||||||
| 9 | agreement entered into at arm's-length rates and | ||||||
| 10 | terms and the principal purpose for the payment is | ||||||
| 11 | not federal or Illinois tax avoidance; or
| ||||||
| 12 | (iv) an item of interest paid, accrued, or | ||||||
| 13 | incurred, directly or indirectly, to a person if | ||||||
| 14 | the taxpayer establishes by clear and convincing | ||||||
| 15 | evidence that the adjustments are unreasonable; or | ||||||
| 16 | if the taxpayer and the Director agree in writing | ||||||
| 17 | to the application or use of an alternative method | ||||||
| 18 | of apportionment under Section 304(f).
| ||||||
| 19 | Nothing in this subsection shall preclude the | ||||||
| 20 | Director from making any other adjustment | ||||||
| 21 | otherwise allowed under Section 404 of this Act for | ||||||
| 22 | any tax year beginning after the effective date of | ||||||
| 23 | this amendment provided such adjustment is made | ||||||
| 24 | pursuant to regulation adopted by the Department | ||||||
| 25 | and such regulations provide methods and standards | ||||||
| 26 | by which the Department will utilize its authority | ||||||
| |||||||
| |||||||
| 1 | under Section 404 of this Act;
| ||||||
| 2 | (G-13) An amount equal to the amount of intangible | ||||||
| 3 | expenses and costs otherwise allowed as a deduction in | ||||||
| 4 | computing base income, and that were paid, accrued, or | ||||||
| 5 | incurred, directly or indirectly, (i) for taxable | ||||||
| 6 | years ending on or after December 31, 2004, to a | ||||||
| 7 | foreign person who would be a member of the same | ||||||
| 8 | unitary business group but for the fact that the | ||||||
| 9 | foreign person's business activity outside the United | ||||||
| 10 | States is 80% or more of that person's total business | ||||||
| 11 | activity and (ii) for taxable years ending on or after | ||||||
| 12 | December 31, 2008, to a person who would be a member of | ||||||
| 13 | the same unitary business group but for the fact that | ||||||
| 14 | the person is prohibited under Section 1501(a)(27) | ||||||
| 15 | from being included in the unitary business group | ||||||
| 16 | because he or she is ordinarily required to apportion | ||||||
| 17 | business income under different subsections of Section | ||||||
| 18 | 304. The addition modification required by this | ||||||
| 19 | subparagraph shall be reduced to the extent that | ||||||
| 20 | dividends were included in base income of the unitary | ||||||
| 21 | group for the same taxable year and received by the | ||||||
| 22 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 23 | business group (including amounts included in gross | ||||||
| 24 | income pursuant to Sections 951 through 964 of the | ||||||
| 25 | Internal Revenue Code and amounts included in gross | ||||||
| 26 | income under Section 78 of the Internal Revenue Code) | ||||||
| |||||||
| |||||||
| 1 | with respect to the stock of the same person to whom | ||||||
| 2 | the intangible expenses and costs were directly or | ||||||
| 3 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 4 | sentence shall not apply to the extent that the same | ||||||
| 5 | dividends caused a reduction to the addition | ||||||
| 6 | modification required under Section 203(c)(2)(G-12) of | ||||||
| 7 | this Act. As used in this subparagraph, the term | ||||||
| 8 | "intangible expenses and costs" includes: (1) | ||||||
| 9 | expenses, losses, and costs for or related to the | ||||||
| 10 | direct or indirect acquisition, use, maintenance or | ||||||
| 11 | management, ownership, sale, exchange, or any other | ||||||
| 12 | disposition of intangible property; (2) losses | ||||||
| 13 | incurred, directly or indirectly, from factoring | ||||||
| 14 | transactions or discounting transactions; (3) royalty, | ||||||
| 15 | patent, technical, and copyright fees; (4) licensing | ||||||
| 16 | fees; and (5) other similar expenses and costs. For | ||||||
| 17 | purposes of this subparagraph, "intangible property" | ||||||
| 18 | includes patents, patent applications, trade names, | ||||||
| 19 | trademarks, service marks, copyrights, mask works, | ||||||
| 20 | trade secrets, and similar types of intangible assets. | ||||||
| 21 | This paragraph shall not apply to the following: | ||||||
| 22 | (i) any item of intangible expenses or costs | ||||||
| 23 | paid, accrued, or incurred, directly or | ||||||
| 24 | indirectly, from a transaction with a person who is | ||||||
| 25 | subject in a foreign country or state, other than a | ||||||
| 26 | state which requires mandatory unitary reporting, | ||||||
| |||||||
| |||||||
| 1 | to a tax on or measured by net income with respect | ||||||
| 2 | to such item; or | ||||||
| 3 | (ii) any item of intangible expense or cost | ||||||
| 4 | paid, accrued, or incurred, directly or | ||||||
| 5 | indirectly, if the taxpayer can establish, based | ||||||
| 6 | on a preponderance of the evidence, both of the | ||||||
| 7 | following: | ||||||
| 8 | (a) the person during the same taxable | ||||||
| 9 | year paid, accrued, or incurred, the | ||||||
| 10 | intangible expense or cost to a person that is | ||||||
| 11 | not a related member, and | ||||||
| 12 | (b) the transaction giving rise to the | ||||||
| 13 | intangible expense or cost between the | ||||||
| 14 | taxpayer and the person did not have as a | ||||||
| 15 | principal purpose the avoidance of Illinois | ||||||
| 16 | income tax, and is paid pursuant to a contract | ||||||
| 17 | or agreement that reflects arm's-length terms; | ||||||
| 18 | or | ||||||
| 19 | (iii) any item of intangible expense or cost | ||||||
| 20 | paid, accrued, or incurred, directly or | ||||||
| 21 | indirectly, from a transaction with a person if the | ||||||
| 22 | taxpayer establishes by clear and convincing | ||||||
| 23 | evidence, that the adjustments are unreasonable; | ||||||
| 24 | or if the taxpayer and the Director agree in | ||||||
| 25 | writing to the application or use of an alternative | ||||||
| 26 | method of apportionment under Section 304(f);
| ||||||
| |||||||
| |||||||
| 1 | Nothing in this subsection shall preclude the | ||||||
| 2 | Director from making any other adjustment | ||||||
| 3 | otherwise allowed under Section 404 of this Act for | ||||||
| 4 | any tax year beginning after the effective date of | ||||||
| 5 | this amendment provided such adjustment is made | ||||||
| 6 | pursuant to regulation adopted by the Department | ||||||
| 7 | and such regulations provide methods and standards | ||||||
| 8 | by which the Department will utilize its authority | ||||||
| 9 | under Section 404 of this Act;
| ||||||
| 10 | (G-14) For taxable years ending on or after | ||||||
| 11 | December 31, 2008, an amount equal to the amount of | ||||||
| 12 | insurance premium expenses and costs otherwise allowed | ||||||
| 13 | as a deduction in computing base income, and that were | ||||||
| 14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 15 | a person who would be a member of the same unitary | ||||||
| 16 | business group but for the fact that the person is | ||||||
| 17 | prohibited under Section 1501(a)(27) from being | ||||||
| 18 | included in the unitary business group because he or | ||||||
| 19 | she is ordinarily required to apportion business | ||||||
| 20 | income under different subsections of Section 304. The | ||||||
| 21 | addition modification required by this subparagraph | ||||||
| 22 | shall be reduced to the extent that dividends were | ||||||
| 23 | included in base income of the unitary group for the | ||||||
| 24 | same taxable year and received by the taxpayer or by a | ||||||
| 25 | member of the taxpayer's unitary business group | ||||||
| 26 | (including amounts included in gross income under | ||||||
| |||||||
| |||||||
| 1 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 2 | and amounts included in gross income under Section 78 | ||||||
| 3 | of the Internal Revenue Code) with respect to the stock | ||||||
| 4 | of the same person to whom the premiums and costs were | ||||||
| 5 | directly or indirectly paid, incurred, or accrued. The | ||||||
| 6 | preceding sentence does not apply to the extent that | ||||||
| 7 | the same dividends caused a reduction to the addition | ||||||
| 8 | modification required under Section 203(c)(2)(G-12) or | ||||||
| 9 | Section 203(c)(2)(G-13) of this Act; | ||||||
| 10 | (G-15) An amount equal to the credit allowable to | ||||||
| 11 | the taxpayer under Section 218(a) of this Act, | ||||||
| 12 | determined without regard to Section 218(c) of this | ||||||
| 13 | Act; | ||||||
| 14 | (G-16) For taxable years ending on or after | ||||||
| 15 | December 31, 2017 and ending on or before December 31, | ||||||
| 16 | 2018, an amount equal to the deduction allowed under | ||||||
| 17 | Section 199 of the Internal Revenue Code for the | ||||||
| 18 | taxable year; | ||||||
| 19 | and by deducting from the total so obtained the sum of the | ||||||
| 20 | following
amounts: | ||||||
| 21 | (H) An amount equal to all amounts included in such | ||||||
| 22 | total pursuant
to the provisions of Sections 402(a), | ||||||
| 23 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
| 24 | Internal Revenue Code or included in such total as
| ||||||
| 25 | distributions under the provisions of any retirement | ||||||
| 26 | or disability plan for
employees of any governmental | ||||||
| |||||||
| |||||||
| 1 | agency or unit, or retirement payments to
retired | ||||||
| 2 | partners, which payments are excluded in computing net | ||||||
| 3 | earnings
from self employment by Section 1402 of the | ||||||
| 4 | Internal Revenue Code and
regulations adopted pursuant | ||||||
| 5 | thereto; | ||||||
| 6 | (I) The valuation limitation amount; | ||||||
| 7 | (J) An amount equal to the amount of any tax | ||||||
| 8 | imposed by this Act
which was refunded to the taxpayer | ||||||
| 9 | and included in such total for the
taxable year; | ||||||
| 10 | (K) An amount equal to all amounts included in | ||||||
| 11 | taxable income as
modified by subparagraphs (A), (B), | ||||||
| 12 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
| 13 | taxation by this State either by reason of its statutes | ||||||
| 14 | or
Constitution
or by reason of the Constitution, | ||||||
| 15 | treaties or statutes of the United States;
provided | ||||||
| 16 | that, in the case of any statute of this State that | ||||||
| 17 | exempts income
derived from bonds or other obligations | ||||||
| 18 | from the tax imposed under this Act,
the amount | ||||||
| 19 | exempted shall be the interest net of bond premium | ||||||
| 20 | amortization; | ||||||
| 21 | (L) With the exception of any amounts subtracted | ||||||
| 22 | under subparagraph
(K),
an amount equal to the sum of | ||||||
| 23 | all amounts disallowed as
deductions by (i) Sections | ||||||
| 24 | 171(a)(2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
| 25 | and all amounts of expenses allocable
to interest and | ||||||
| 26 | disallowed as deductions by Section 265(a)(1) 265(1) | ||||||
| |||||||
| |||||||
| 1 | of the Internal
Revenue Code;
and (ii) for taxable | ||||||
| 2 | years
ending on or after August 13, 1999, Sections
| ||||||
| 3 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
| 4 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
| 5 | ending on or after December 31, 2011, Section 45G(e)(3) | ||||||
| 6 | of the Internal Revenue Code and, for taxable years | ||||||
| 7 | ending on or after December 31, 2008, any amount | ||||||
| 8 | included in gross income under Section 87 of the | ||||||
| 9 | Internal Revenue Code; the provisions of this
| ||||||
| 10 | subparagraph are exempt from the provisions of Section | ||||||
| 11 | 250; | ||||||
| 12 | (M) An amount equal to those dividends included in | ||||||
| 13 | such total
which were paid by a corporation which | ||||||
| 14 | conducts business operations in a River Edge | ||||||
| 15 | Redevelopment Zone or zones created under the River | ||||||
| 16 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
| 17 | all of its operations in a River Edge Redevelopment | ||||||
| 18 | Zone or zones. This subparagraph (M) is exempt from the | ||||||
| 19 | provisions of Section 250; | ||||||
| 20 | (N) An amount equal to any contribution made to a | ||||||
| 21 | job training
project established pursuant to the Tax | ||||||
| 22 | Increment Allocation
Redevelopment Act; | ||||||
| 23 | (O) An amount equal to those dividends included in | ||||||
| 24 | such total
that were paid by a corporation that | ||||||
| 25 | conducts business operations in a
federally designated | ||||||
| 26 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
| |||||||
| |||||||
| 1 | High Impact Business located in Illinois; provided | ||||||
| 2 | that dividends eligible
for the deduction provided in | ||||||
| 3 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
| 4 | shall not be eligible for the deduction provided under | ||||||
| 5 | this
subparagraph (O); | ||||||
| 6 | (P) An amount equal to the amount of the deduction | ||||||
| 7 | used to compute the
federal income tax credit for | ||||||
| 8 | restoration of substantial amounts held under
claim of | ||||||
| 9 | right for the taxable year pursuant to Section 1341 of | ||||||
| 10 | the
Internal Revenue Code; | ||||||
| 11 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
| 12 | equal to the
amount of any
(i) distributions, to the | ||||||
| 13 | extent includible in gross income for
federal income | ||||||
| 14 | tax purposes, made to the taxpayer because of
his or | ||||||
| 15 | her status as a victim of
persecution for racial or | ||||||
| 16 | religious reasons by Nazi Germany or any other Axis
| ||||||
| 17 | regime or as an heir of the victim and (ii) items
of | ||||||
| 18 | income, to the extent
includible in gross income for | ||||||
| 19 | federal income tax purposes, attributable to,
derived | ||||||
| 20 | from or in any way related to assets stolen from, | ||||||
| 21 | hidden from, or
otherwise lost to a victim of
| ||||||
| 22 | persecution for racial or religious reasons by Nazi
| ||||||
| 23 | Germany or any other Axis regime
immediately prior to, | ||||||
| 24 | during, and immediately after World War II, including,
| ||||||
| 25 | but
not limited to, interest on the proceeds receivable | ||||||
| 26 | as insurance
under policies issued to a victim of | ||||||
| |||||||
| |||||||
| 1 | persecution for racial or religious
reasons by Nazi | ||||||
| 2 | Germany or any other Axis regime by European insurance
| ||||||
| 3 | companies
immediately prior to and during World War II;
| ||||||
| 4 | provided, however, this subtraction from federal | ||||||
| 5 | adjusted gross income does not
apply to assets acquired | ||||||
| 6 | with such assets or with the proceeds from the sale of
| ||||||
| 7 | such assets; provided, further, this paragraph shall | ||||||
| 8 | only apply to a taxpayer
who was the first recipient of | ||||||
| 9 | such assets after their recovery and who is a
victim of
| ||||||
| 10 | persecution for racial or religious reasons
by Nazi | ||||||
| 11 | Germany or any other Axis regime or as an heir of the | ||||||
| 12 | victim. The
amount of and the eligibility for any | ||||||
| 13 | public assistance, benefit, or
similar entitlement is | ||||||
| 14 | not affected by the inclusion of items (i) and (ii) of
| ||||||
| 15 | this paragraph in gross income for federal income tax | ||||||
| 16 | purposes.
This paragraph is exempt from the provisions | ||||||
| 17 | of Section 250; | ||||||
| 18 | (R) For taxable years 2001 and thereafter, for the | ||||||
| 19 | taxable year in
which the bonus depreciation deduction
| ||||||
| 20 | is taken on the taxpayer's federal income tax return | ||||||
| 21 | under
subsection (k) of Section 168 of the Internal | ||||||
| 22 | Revenue Code and for each
applicable taxable year | ||||||
| 23 | thereafter, an amount equal to "x", where: | ||||||
| 24 | (1) "y" equals the amount of the depreciation | ||||||
| 25 | deduction taken for the
taxable year
on the | ||||||
| 26 | taxpayer's federal income tax return on property | ||||||
| |||||||
| |||||||
| 1 | for which the bonus
depreciation deduction
was | ||||||
| 2 | taken in any year under subsection (k) of Section | ||||||
| 3 | 168 of the Internal
Revenue Code, but not including | ||||||
| 4 | the bonus depreciation deduction; | ||||||
| 5 | (2) for taxable years ending on or before | ||||||
| 6 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 7 | and then divided by 70 (or "y"
multiplied by | ||||||
| 8 | 0.429); and | ||||||
| 9 | (3) for taxable years ending after December | ||||||
| 10 | 31, 2005: | ||||||
| 11 | (i) for property on which a bonus | ||||||
| 12 | depreciation deduction of 30% of the adjusted | ||||||
| 13 | basis was taken, "x" equals "y" multiplied by | ||||||
| 14 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
| 15 | 0.429); and | ||||||
| 16 | (ii) for property on which a bonus | ||||||
| 17 | depreciation deduction of 50% of the adjusted | ||||||
| 18 | basis was taken, "x" equals "y" multiplied by | ||||||
| 19 | 1.0. | ||||||
| 20 | The aggregate amount deducted under this | ||||||
| 21 | subparagraph in all taxable
years for any one piece of | ||||||
| 22 | property may not exceed the amount of the bonus
| ||||||
| 23 | depreciation deduction
taken on that property on the | ||||||
| 24 | taxpayer's federal income tax return under
subsection | ||||||
| 25 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 26 | subparagraph (R) is exempt from the provisions of | ||||||
| |||||||
| |||||||
| 1 | Section 250; | ||||||
| 2 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
| 3 | otherwise disposes of
property for which the taxpayer | ||||||
| 4 | was required in any taxable year to make an
addition | ||||||
| 5 | modification under subparagraph (G-10), then an amount | ||||||
| 6 | equal to that
addition modification. | ||||||
| 7 | If the taxpayer continues to own property through | ||||||
| 8 | the last day of the last tax year for which the | ||||||
| 9 | taxpayer may claim a depreciation deduction for | ||||||
| 10 | federal income tax purposes and for which the taxpayer | ||||||
| 11 | was required in any taxable year to make an addition | ||||||
| 12 | modification under subparagraph (G-10), then an amount | ||||||
| 13 | equal to that addition modification.
| ||||||
| 14 | The taxpayer is allowed to take the deduction under | ||||||
| 15 | this subparagraph
only once with respect to any one | ||||||
| 16 | piece of property. | ||||||
| 17 | This subparagraph (S) is exempt from the | ||||||
| 18 | provisions of Section 250; | ||||||
| 19 | (T) The amount of (i) any interest income (net of | ||||||
| 20 | the deductions allocable thereto) taken into account | ||||||
| 21 | for the taxable year with respect to a transaction with | ||||||
| 22 | a taxpayer that is required to make an addition | ||||||
| 23 | modification with respect to such transaction under | ||||||
| 24 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 25 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 26 | the amount of such addition modification and
(ii) any | ||||||
| |||||||
| |||||||
| 1 | income from intangible property (net of the deductions | ||||||
| 2 | allocable thereto) taken into account for the taxable | ||||||
| 3 | year with respect to a transaction with a taxpayer that | ||||||
| 4 | is required to make an addition modification with | ||||||
| 5 | respect to such transaction under Section | ||||||
| 6 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 7 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 8 | addition modification. This subparagraph (T) is exempt | ||||||
| 9 | from the provisions of Section 250;
| ||||||
| 10 | (U) An amount equal to the interest income taken | ||||||
| 11 | into account for the taxable year (net of the | ||||||
| 12 | deductions allocable thereto) with respect to | ||||||
| 13 | transactions with (i) a foreign person who would be a | ||||||
| 14 | member of the taxpayer's unitary business group but for | ||||||
| 15 | the fact the foreign person's business activity | ||||||
| 16 | outside the United States is 80% or more of that | ||||||
| 17 | person's total business activity and (ii) for taxable | ||||||
| 18 | years ending on or after December 31, 2008, to a person | ||||||
| 19 | who would be a member of the same unitary business | ||||||
| 20 | group but for the fact that the person is prohibited | ||||||
| 21 | under Section 1501(a)(27) from being included in the | ||||||
| 22 | unitary business group because he or she is ordinarily | ||||||
| 23 | required to apportion business income under different | ||||||
| 24 | subsections of Section 304, but not to exceed the | ||||||
| 25 | addition modification required to be made for the same | ||||||
| 26 | taxable year under Section 203(c)(2)(G-12) for | ||||||
| |||||||
| |||||||
| 1 | interest paid, accrued, or incurred, directly or | ||||||
| 2 | indirectly, to the same person. This subparagraph (U) | ||||||
| 3 | is exempt from the provisions of Section 250; | ||||||
| 4 | (V) An amount equal to the income from intangible | ||||||
| 5 | property taken into account for the taxable year (net | ||||||
| 6 | of the deductions allocable thereto) with respect to | ||||||
| 7 | transactions with (i) a foreign person who would be a | ||||||
| 8 | member of the taxpayer's unitary business group but for | ||||||
| 9 | the fact that the foreign person's business activity | ||||||
| 10 | outside the United States is 80% or more of that | ||||||
| 11 | person's total business activity and (ii) for taxable | ||||||
| 12 | years ending on or after December 31, 2008, to a person | ||||||
| 13 | who would be a member of the same unitary business | ||||||
| 14 | group but for the fact that the person is prohibited | ||||||
| 15 | under Section 1501(a)(27) from being included in the | ||||||
| 16 | unitary business group because he or she is ordinarily | ||||||
| 17 | required to apportion business income under different | ||||||
| 18 | subsections of Section 304, but not to exceed the | ||||||
| 19 | addition modification required to be made for the same | ||||||
| 20 | taxable year under Section 203(c)(2)(G-13) for | ||||||
| 21 | intangible expenses and costs paid, accrued, or | ||||||
| 22 | incurred, directly or indirectly, to the same foreign | ||||||
| 23 | person. This subparagraph (V) is exempt from the | ||||||
| 24 | provisions of Section 250;
| ||||||
| 25 | (W) in the case of an estate, an amount equal to | ||||||
| 26 | all amounts included in such total pursuant to the | ||||||
| |||||||
| |||||||
| 1 | provisions of Section 111 of the Internal Revenue Code | ||||||
| 2 | as a recovery of items previously deducted by the | ||||||
| 3 | decedent from adjusted gross income in the computation | ||||||
| 4 | of taxable income. This subparagraph (W) is exempt from | ||||||
| 5 | Section 250; | ||||||
| 6 | (X) an amount equal to the refund included in such | ||||||
| 7 | total of any tax deducted for federal income tax | ||||||
| 8 | purposes, to the extent that deduction was added back | ||||||
| 9 | under subparagraph (F). This subparagraph (X) is | ||||||
| 10 | exempt from the provisions of Section 250; and | ||||||
| 11 | (Y) For taxable years ending on or after December | ||||||
| 12 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 13 | add back any insurance premiums under Section | ||||||
| 14 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
| 15 | that part of a reimbursement received from the | ||||||
| 16 | insurance company equal to the amount of the expense or | ||||||
| 17 | loss (including expenses incurred by the insurance | ||||||
| 18 | company) that would have been taken into account as a | ||||||
| 19 | deduction for federal income tax purposes if the | ||||||
| 20 | expense or loss had been uninsured. If a taxpayer makes | ||||||
| 21 | the election provided for by this subparagraph (Y), the | ||||||
| 22 | insurer to which the premiums were paid must add back | ||||||
| 23 | to income the amount subtracted by the taxpayer | ||||||
| 24 | pursuant to this subparagraph (Y). This subparagraph | ||||||
| 25 | (Y) is exempt from the provisions of Section 250. | ||||||
| 26 | (3) Limitation. The amount of any modification | ||||||
| |||||||
| |||||||
| 1 | otherwise required
under this subsection shall, under | ||||||
| 2 | regulations prescribed by the
Department, be adjusted by | ||||||
| 3 | any amounts included therein which were
properly paid, | ||||||
| 4 | credited, or required to be distributed, or permanently set
| ||||||
| 5 | aside for charitable purposes pursuant to Internal Revenue | ||||||
| 6 | Code Section
642(c) during the taxable year.
| ||||||
| 7 | (d) Partnerships. | ||||||
| 8 | (1) In general. In the case of a partnership, base | ||||||
| 9 | income means an
amount equal to the taxpayer's taxable | ||||||
| 10 | income for the taxable year as
modified by paragraph (2). | ||||||
| 11 | (2) Modifications. The taxable income referred to in | ||||||
| 12 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
| 13 | of the following amounts: | ||||||
| 14 | (A) An amount equal to all amounts paid or accrued | ||||||
| 15 | to the taxpayer as
interest or dividends during the | ||||||
| 16 | taxable year to the extent excluded from
gross income | ||||||
| 17 | in the computation of taxable income; | ||||||
| 18 | (B) An amount equal to the amount of tax imposed by | ||||||
| 19 | this Act to the
extent deducted from gross income for | ||||||
| 20 | the taxable year; | ||||||
| 21 | (C) The amount of deductions allowed to the | ||||||
| 22 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
| 23 | Revenue Code in calculating its taxable income; | ||||||
| 24 | (D) An amount equal to the amount of the capital | ||||||
| 25 | gain deduction
allowable under the Internal Revenue | ||||||
| |||||||
| |||||||
| 1 | Code, to the extent deducted from
gross income in the | ||||||
| 2 | computation of taxable income; | ||||||
| 3 | (D-5) For taxable years 2001 and thereafter, an | ||||||
| 4 | amount equal to the
bonus depreciation deduction taken | ||||||
| 5 | on the taxpayer's federal income tax return for the | ||||||
| 6 | taxable
year under subsection (k) of Section 168 of the | ||||||
| 7 | Internal Revenue Code; | ||||||
| 8 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
| 9 | or otherwise disposes of
property for which the | ||||||
| 10 | taxpayer was required in any taxable year to make an
| ||||||
| 11 | addition modification under subparagraph (D-5), then | ||||||
| 12 | an amount equal to the
aggregate amount of the | ||||||
| 13 | deductions taken in all taxable years
under | ||||||
| 14 | subparagraph (O) with respect to that property. | ||||||
| 15 | If the taxpayer continues to own property through | ||||||
| 16 | the last day of the last tax year for which the | ||||||
| 17 | taxpayer may claim a depreciation deduction for | ||||||
| 18 | federal income tax purposes and for which the taxpayer | ||||||
| 19 | was allowed in any taxable year to make a subtraction | ||||||
| 20 | modification under subparagraph (O), then an amount | ||||||
| 21 | equal to that subtraction modification.
| ||||||
| 22 | The taxpayer is required to make the addition | ||||||
| 23 | modification under this
subparagraph
only once with | ||||||
| 24 | respect to any one piece of property; | ||||||
| 25 | (D-7) An amount equal to the amount otherwise | ||||||
| 26 | allowed as a deduction in computing base income for | ||||||
| |||||||
| |||||||
| 1 | interest paid, accrued, or incurred, directly or | ||||||
| 2 | indirectly, (i) for taxable years ending on or after | ||||||
| 3 | December 31, 2004, to a foreign person who would be a | ||||||
| 4 | member of the same unitary business group but for the | ||||||
| 5 | fact the foreign person's business activity outside | ||||||
| 6 | the United States is 80% or more of the foreign | ||||||
| 7 | person's total business activity and (ii) for taxable | ||||||
| 8 | years ending on or after December 31, 2008, to a person | ||||||
| 9 | who would be a member of the same unitary business | ||||||
| 10 | group but for the fact that the person is prohibited | ||||||
| 11 | under Section 1501(a)(27) from being included in the | ||||||
| 12 | unitary business group because he or she is ordinarily | ||||||
| 13 | required to apportion business income under different | ||||||
| 14 | subsections of Section 304. The addition modification | ||||||
| 15 | required by this subparagraph shall be reduced to the | ||||||
| 16 | extent that dividends were included in base income of | ||||||
| 17 | the unitary group for the same taxable year and | ||||||
| 18 | received by the taxpayer or by a member of the | ||||||
| 19 | taxpayer's unitary business group (including amounts | ||||||
| 20 | included in gross income pursuant to Sections 951 | ||||||
| 21 | through 964 of the Internal Revenue Code and amounts | ||||||
| 22 | included in gross income under Section 78 of the | ||||||
| 23 | Internal Revenue Code) with respect to the stock of the | ||||||
| 24 | same person to whom the interest was paid, accrued, or | ||||||
| 25 | incurred.
| ||||||
| 26 | This paragraph shall not apply to the following:
| ||||||
| |||||||
| |||||||
| 1 | (i) an item of interest paid, accrued, or | ||||||
| 2 | incurred, directly or indirectly, to a person who | ||||||
| 3 | is subject in a foreign country or state, other | ||||||
| 4 | than a state which requires mandatory unitary | ||||||
| 5 | reporting, to a tax on or measured by net income | ||||||
| 6 | with respect to such interest; or | ||||||
| 7 | (ii) an item of interest paid, accrued, or | ||||||
| 8 | incurred, directly or indirectly, to a person if | ||||||
| 9 | the taxpayer can establish, based on a | ||||||
| 10 | preponderance of the evidence, both of the | ||||||
| 11 | following: | ||||||
| 12 | (a) the person, during the same taxable | ||||||
| 13 | year, paid, accrued, or incurred, the interest | ||||||
| 14 | to a person that is not a related member, and | ||||||
| 15 | (b) the transaction giving rise to the | ||||||
| 16 | interest expense between the taxpayer and the | ||||||
| 17 | person did not have as a principal purpose the | ||||||
| 18 | avoidance of Illinois income tax, and is paid | ||||||
| 19 | pursuant to a contract or agreement that | ||||||
| 20 | reflects an arm's-length interest rate and | ||||||
| 21 | terms; or
| ||||||
| 22 | (iii) the taxpayer can establish, based on | ||||||
| 23 | clear and convincing evidence, that the interest | ||||||
| 24 | paid, accrued, or incurred relates to a contract or | ||||||
| 25 | agreement entered into at arm's-length rates and | ||||||
| 26 | terms and the principal purpose for the payment is | ||||||
| |||||||
| |||||||
| 1 | not federal or Illinois tax avoidance; or
| ||||||
| 2 | (iv) an item of interest paid, accrued, or | ||||||
| 3 | incurred, directly or indirectly, to a person if | ||||||
| 4 | the taxpayer establishes by clear and convincing | ||||||
| 5 | evidence that the adjustments are unreasonable; or | ||||||
| 6 | if the taxpayer and the Director agree in writing | ||||||
| 7 | to the application or use of an alternative method | ||||||
| 8 | of apportionment under Section 304(f).
| ||||||
| 9 | Nothing in this subsection shall preclude the | ||||||
| 10 | Director from making any other adjustment | ||||||
| 11 | otherwise allowed under Section 404 of this Act for | ||||||
| 12 | any tax year beginning after the effective date of | ||||||
| 13 | this amendment provided such adjustment is made | ||||||
| 14 | pursuant to regulation adopted by the Department | ||||||
| 15 | and such regulations provide methods and standards | ||||||
| 16 | by which the Department will utilize its authority | ||||||
| 17 | under Section 404 of this Act; and
| ||||||
| 18 | (D-8) An amount equal to the amount of intangible | ||||||
| 19 | expenses and costs otherwise allowed as a deduction in | ||||||
| 20 | computing base income, and that were paid, accrued, or | ||||||
| 21 | incurred, directly or indirectly, (i) for taxable | ||||||
| 22 | years ending on or after December 31, 2004, to a | ||||||
| 23 | foreign person who would be a member of the same | ||||||
| 24 | unitary business group but for the fact that the | ||||||
| 25 | foreign person's business activity outside the United | ||||||
| 26 | States is 80% or more of that person's total business | ||||||
| |||||||
| |||||||
| 1 | activity and (ii) for taxable years ending on or after | ||||||
| 2 | December 31, 2008, to a person who would be a member of | ||||||
| 3 | the same unitary business group but for the fact that | ||||||
| 4 | the person is prohibited under Section 1501(a)(27) | ||||||
| 5 | from being included in the unitary business group | ||||||
| 6 | because he or she is ordinarily required to apportion | ||||||
| 7 | business income under different subsections of Section | ||||||
| 8 | 304. The addition modification required by this | ||||||
| 9 | subparagraph shall be reduced to the extent that | ||||||
| 10 | dividends were included in base income of the unitary | ||||||
| 11 | group for the same taxable year and received by the | ||||||
| 12 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 13 | business group (including amounts included in gross | ||||||
| 14 | income pursuant to Sections 951 through 964 of the | ||||||
| 15 | Internal Revenue Code and amounts included in gross | ||||||
| 16 | income under Section 78 of the Internal Revenue Code) | ||||||
| 17 | with respect to the stock of the same person to whom | ||||||
| 18 | the intangible expenses and costs were directly or | ||||||
| 19 | indirectly paid, incurred or accrued. The preceding | ||||||
| 20 | sentence shall not apply to the extent that the same | ||||||
| 21 | dividends caused a reduction to the addition | ||||||
| 22 | modification required under Section 203(d)(2)(D-7) of | ||||||
| 23 | this Act. As used in this subparagraph, the term | ||||||
| 24 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 25 | losses, and costs for, or related to, the direct or | ||||||
| 26 | indirect acquisition, use, maintenance or management, | ||||||
| |||||||
| |||||||
| 1 | ownership, sale, exchange, or any other disposition of | ||||||
| 2 | intangible property; (2) losses incurred, directly or | ||||||
| 3 | indirectly, from factoring transactions or discounting | ||||||
| 4 | transactions; (3) royalty, patent, technical, and | ||||||
| 5 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 6 | similar expenses and costs. For purposes of this | ||||||
| 7 | subparagraph, "intangible property" includes patents, | ||||||
| 8 | patent applications, trade names, trademarks, service | ||||||
| 9 | marks, copyrights, mask works, trade secrets, and | ||||||
| 10 | similar types of intangible assets; | ||||||
| 11 | This paragraph shall not apply to the following: | ||||||
| 12 | (i) any item of intangible expenses or costs | ||||||
| 13 | paid, accrued, or incurred, directly or | ||||||
| 14 | indirectly, from a transaction with a person who is | ||||||
| 15 | subject in a foreign country or state, other than a | ||||||
| 16 | state which requires mandatory unitary reporting, | ||||||
| 17 | to a tax on or measured by net income with respect | ||||||
| 18 | to such item; or | ||||||
| 19 | (ii) any item of intangible expense or cost | ||||||
| 20 | paid, accrued, or incurred, directly or | ||||||
| 21 | indirectly, if the taxpayer can establish, based | ||||||
| 22 | on a preponderance of the evidence, both of the | ||||||
| 23 | following: | ||||||
| 24 | (a) the person during the same taxable | ||||||
| 25 | year paid, accrued, or incurred, the | ||||||
| 26 | intangible expense or cost to a person that is | ||||||
| |||||||
| |||||||
| 1 | not a related member, and | ||||||
| 2 | (b) the transaction giving rise to the | ||||||
| 3 | intangible expense or cost between the | ||||||
| 4 | taxpayer and the person did not have as a | ||||||
| 5 | principal purpose the avoidance of Illinois | ||||||
| 6 | income tax, and is paid pursuant to a contract | ||||||
| 7 | or agreement that reflects arm's-length terms; | ||||||
| 8 | or | ||||||
| 9 | (iii) any item of intangible expense or cost | ||||||
| 10 | paid, accrued, or incurred, directly or | ||||||
| 11 | indirectly, from a transaction with a person if the | ||||||
| 12 | taxpayer establishes by clear and convincing | ||||||
| 13 | evidence, that the adjustments are unreasonable; | ||||||
| 14 | or if the taxpayer and the Director agree in | ||||||
| 15 | writing to the application or use of an alternative | ||||||
| 16 | method of apportionment under Section 304(f);
| ||||||
| 17 | Nothing in this subsection shall preclude the | ||||||
| 18 | Director from making any other adjustment | ||||||
| 19 | otherwise allowed under Section 404 of this Act for | ||||||
| 20 | any tax year beginning after the effective date of | ||||||
| 21 | this amendment provided such adjustment is made | ||||||
| 22 | pursuant to regulation adopted by the Department | ||||||
| 23 | and such regulations provide methods and standards | ||||||
| 24 | by which the Department will utilize its authority | ||||||
| 25 | under Section 404 of this Act;
| ||||||
| 26 | (D-9) For taxable years ending on or after December | ||||||
| |||||||
| |||||||
| 1 | 31, 2008, an amount equal to the amount of insurance | ||||||
| 2 | premium expenses and costs otherwise allowed as a | ||||||
| 3 | deduction in computing base income, and that were paid, | ||||||
| 4 | accrued, or incurred, directly or indirectly, to a | ||||||
| 5 | person who would be a member of the same unitary | ||||||
| 6 | business group but for the fact that the person is | ||||||
| 7 | prohibited under Section 1501(a)(27) from being | ||||||
| 8 | included in the unitary business group because he or | ||||||
| 9 | she is ordinarily required to apportion business | ||||||
| 10 | income under different subsections of Section 304. The | ||||||
| 11 | addition modification required by this subparagraph | ||||||
| 12 | shall be reduced to the extent that dividends were | ||||||
| 13 | included in base income of the unitary group for the | ||||||
| 14 | same taxable year and received by the taxpayer or by a | ||||||
| 15 | member of the taxpayer's unitary business group | ||||||
| 16 | (including amounts included in gross income under | ||||||
| 17 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 18 | and amounts included in gross income under Section 78 | ||||||
| 19 | of the Internal Revenue Code) with respect to the stock | ||||||
| 20 | of the same person to whom the premiums and costs were | ||||||
| 21 | directly or indirectly paid, incurred, or accrued. The | ||||||
| 22 | preceding sentence does not apply to the extent that | ||||||
| 23 | the same dividends caused a reduction to the addition | ||||||
| 24 | modification required under Section 203(d)(2)(D-7) or | ||||||
| 25 | Section 203(d)(2)(D-8) of this Act; | ||||||
| 26 | (D-10) An amount equal to the credit allowable to | ||||||
| |||||||
| |||||||
| 1 | the taxpayer under Section 218(a) of this Act, | ||||||
| 2 | determined without regard to Section 218(c) of this | ||||||
| 3 | Act; | ||||||
| 4 | (D-11) For taxable years ending on or after | ||||||
| 5 | December 31, 2017 and ending on or before December 31, | ||||||
| 6 | 2018, an amount equal to the deduction allowed under | ||||||
| 7 | Section 199 of the Internal Revenue Code for the | ||||||
| 8 | taxable year; | ||||||
| 9 | and by deducting from the total so obtained the following | ||||||
| 10 | amounts: | ||||||
| 11 | (E) The valuation limitation amount; | ||||||
| 12 | (F) An amount equal to the amount of any tax | ||||||
| 13 | imposed by this Act which
was refunded to the taxpayer | ||||||
| 14 | and included in such total for the taxable year; | ||||||
| 15 | (G) An amount equal to all amounts included in | ||||||
| 16 | taxable income as
modified by subparagraphs (A), (B), | ||||||
| 17 | (C) and (D) which are exempt from
taxation by this | ||||||
| 18 | State either by reason of its statutes or Constitution | ||||||
| 19 | or
by reason of
the Constitution, treaties or statutes | ||||||
| 20 | of the United States;
provided that, in the case of any | ||||||
| 21 | statute of this State that exempts income
derived from | ||||||
| 22 | bonds or other obligations from the tax imposed under | ||||||
| 23 | this Act,
the amount exempted shall be the interest net | ||||||
| 24 | of bond premium amortization; | ||||||
| 25 | (H) Any income of the partnership which | ||||||
| 26 | constitutes personal service
income as defined in | ||||||
| |||||||
| |||||||
| 1 | Section 1348(b)(1) of the Internal Revenue Code (as
in | ||||||
| 2 | effect December 31, 1981) or a reasonable allowance for | ||||||
| 3 | compensation
paid or accrued for services rendered by | ||||||
| 4 | partners to the partnership,
whichever is greater; | ||||||
| 5 | this subparagraph (H) is exempt from the provisions of | ||||||
| 6 | Section 250; | ||||||
| 7 | (I) An amount equal to all amounts of income | ||||||
| 8 | distributable to an entity
subject to the Personal | ||||||
| 9 | Property Tax Replacement Income Tax imposed by
| ||||||
| 10 | subsections (c) and (d) of Section 201 of this Act | ||||||
| 11 | including amounts
distributable to organizations | ||||||
| 12 | exempt from federal income tax by reason of
Section | ||||||
| 13 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
| 14 | (I) is exempt from the provisions of Section 250; | ||||||
| 15 | (J) With the exception of any amounts subtracted | ||||||
| 16 | under subparagraph
(G),
an amount equal to the sum of | ||||||
| 17 | all amounts disallowed as deductions
by (i) Sections | ||||||
| 18 | 171(a)(2), and 265(a)(2) 265(2) of the Internal | ||||||
| 19 | Revenue Code, and all amounts of expenses allocable to
| ||||||
| 20 | interest and disallowed as deductions by Section | ||||||
| 21 | 265(a)(1) 265(1) of the Internal
Revenue Code;
and (ii) | ||||||
| 22 | for taxable years
ending on or after August 13, 1999, | ||||||
| 23 | Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
| 24 | the Internal Revenue Code, plus, (iii) for taxable | ||||||
| 25 | years ending on or after December 31, 2011, Section | ||||||
| 26 | 45G(e)(3) of the Internal Revenue Code and, for taxable | ||||||
| |||||||
| |||||||
| 1 | years ending on or after December 31, 2008, any amount | ||||||
| 2 | included in gross income under Section 87 of the | ||||||
| 3 | Internal Revenue Code; the provisions of this
| ||||||
| 4 | subparagraph are exempt from the provisions of Section | ||||||
| 5 | 250; | ||||||
| 6 | (K) An amount equal to those dividends included in | ||||||
| 7 | such total which were
paid by a corporation which | ||||||
| 8 | conducts business operations in a River Edge | ||||||
| 9 | Redevelopment Zone or zones created under the River | ||||||
| 10 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
| 11 | all of its operations
from a River Edge Redevelopment | ||||||
| 12 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
| 13 | provisions of Section 250; | ||||||
| 14 | (L) An amount equal to any contribution made to a | ||||||
| 15 | job training project
established pursuant to the Real | ||||||
| 16 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
| 17 | (M) An amount equal to those dividends included in | ||||||
| 18 | such total
that were paid by a corporation that | ||||||
| 19 | conducts business operations in a
federally designated | ||||||
| 20 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
| 21 | High Impact Business located in Illinois; provided | ||||||
| 22 | that dividends eligible
for the deduction provided in | ||||||
| 23 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
| 24 | shall not be eligible for the deduction provided under | ||||||
| 25 | this
subparagraph (M); | ||||||
| 26 | (N) An amount equal to the amount of the deduction | ||||||
| |||||||
| |||||||
| 1 | used to compute the
federal income tax credit for | ||||||
| 2 | restoration of substantial amounts held under
claim of | ||||||
| 3 | right for the taxable year pursuant to Section 1341 of | ||||||
| 4 | the
Internal Revenue Code; | ||||||
| 5 | (O) For taxable years 2001 and thereafter, for the | ||||||
| 6 | taxable year in
which the bonus depreciation deduction
| ||||||
| 7 | is taken on the taxpayer's federal income tax return | ||||||
| 8 | under
subsection (k) of Section 168 of the Internal | ||||||
| 9 | Revenue Code and for each
applicable taxable year | ||||||
| 10 | thereafter, an amount equal to "x", where: | ||||||
| 11 | (1) "y" equals the amount of the depreciation | ||||||
| 12 | deduction taken for the
taxable year
on the | ||||||
| 13 | taxpayer's federal income tax return on property | ||||||
| 14 | for which the bonus
depreciation deduction
was | ||||||
| 15 | taken in any year under subsection (k) of Section | ||||||
| 16 | 168 of the Internal
Revenue Code, but not including | ||||||
| 17 | the bonus depreciation deduction; | ||||||
| 18 | (2) for taxable years ending on or before | ||||||
| 19 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 20 | and then divided by 70 (or "y"
multiplied by | ||||||
| 21 | 0.429); and | ||||||
| 22 | (3) for taxable years ending after December | ||||||
| 23 | 31, 2005: | ||||||
| 24 | (i) for property on which a bonus | ||||||
| 25 | depreciation deduction of 30% of the adjusted | ||||||
| 26 | basis was taken, "x" equals "y" multiplied by | ||||||
| |||||||
| |||||||
| 1 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
| 2 | 0.429); and | ||||||
| 3 | (ii) for property on which a bonus | ||||||
| 4 | depreciation deduction of 50% of the adjusted | ||||||
| 5 | basis was taken, "x" equals "y" multiplied by | ||||||
| 6 | 1.0. | ||||||
| 7 | The aggregate amount deducted under this | ||||||
| 8 | subparagraph in all taxable
years for any one piece of | ||||||
| 9 | property may not exceed the amount of the bonus
| ||||||
| 10 | depreciation deduction
taken on that property on the | ||||||
| 11 | taxpayer's federal income tax return under
subsection | ||||||
| 12 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 13 | subparagraph (O) is exempt from the provisions of | ||||||
| 14 | Section 250; | ||||||
| 15 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
| 16 | otherwise disposes of
property for which the taxpayer | ||||||
| 17 | was required in any taxable year to make an
addition | ||||||
| 18 | modification under subparagraph (D-5), then an amount | ||||||
| 19 | equal to that
addition modification. | ||||||
| 20 | If the taxpayer continues to own property through | ||||||
| 21 | the last day of the last tax year for which the | ||||||
| 22 | taxpayer may claim a depreciation deduction for | ||||||
| 23 | federal income tax purposes and for which the taxpayer | ||||||
| 24 | was required in any taxable year to make an addition | ||||||
| 25 | modification under subparagraph (D-5), then an amount | ||||||
| 26 | equal to that addition modification.
| ||||||
| |||||||
| |||||||
| 1 | The taxpayer is allowed to take the deduction under | ||||||
| 2 | this subparagraph
only once with respect to any one | ||||||
| 3 | piece of property. | ||||||
| 4 | This subparagraph (P) is exempt from the | ||||||
| 5 | provisions of Section 250; | ||||||
| 6 | (Q) The amount of (i) any interest income (net of | ||||||
| 7 | the deductions allocable thereto) taken into account | ||||||
| 8 | for the taxable year with respect to a transaction with | ||||||
| 9 | a taxpayer that is required to make an addition | ||||||
| 10 | modification with respect to such transaction under | ||||||
| 11 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 12 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 13 | the amount of such addition modification and
(ii) any | ||||||
| 14 | income from intangible property (net of the deductions | ||||||
| 15 | allocable thereto) taken into account for the taxable | ||||||
| 16 | year with respect to a transaction with a taxpayer that | ||||||
| 17 | is required to make an addition modification with | ||||||
| 18 | respect to such transaction under Section | ||||||
| 19 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 20 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 21 | addition modification. This subparagraph (Q) is exempt | ||||||
| 22 | from Section 250;
| ||||||
| 23 | (R) An amount equal to the interest income taken | ||||||
| 24 | into account for the taxable year (net of the | ||||||
| 25 | deductions allocable thereto) with respect to | ||||||
| 26 | transactions with (i) a foreign person who would be a | ||||||
| |||||||
| |||||||
| 1 | member of the taxpayer's unitary business group but for | ||||||
| 2 | the fact that the foreign person's business activity | ||||||
| 3 | outside the United States is 80% or more of that | ||||||
| 4 | person's total business activity and (ii) for taxable | ||||||
| 5 | years ending on or after December 31, 2008, to a person | ||||||
| 6 | who would be a member of the same unitary business | ||||||
| 7 | group but for the fact that the person is prohibited | ||||||
| 8 | under Section 1501(a)(27) from being included in the | ||||||
| 9 | unitary business group because he or she is ordinarily | ||||||
| 10 | required to apportion business income under different | ||||||
| 11 | subsections of Section 304, but not to exceed the | ||||||
| 12 | addition modification required to be made for the same | ||||||
| 13 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
| 14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 15 | the same person. This subparagraph (R) is exempt from | ||||||
| 16 | Section 250; | ||||||
| 17 | (S) An amount equal to the income from intangible | ||||||
| 18 | property taken into account for the taxable year (net | ||||||
| 19 | of the deductions allocable thereto) with respect to | ||||||
| 20 | transactions with (i) a foreign person who would be a | ||||||
| 21 | member of the taxpayer's unitary business group but for | ||||||
| 22 | the fact that the foreign person's business activity | ||||||
| 23 | outside the United States is 80% or more of that | ||||||
| 24 | person's total business activity and (ii) for taxable | ||||||
| 25 | years ending on or after December 31, 2008, to a person | ||||||
| 26 | who would be a member of the same unitary business | ||||||
| |||||||
| |||||||
| 1 | group but for the fact that the person is prohibited | ||||||
| 2 | under Section 1501(a)(27) from being included in the | ||||||
| 3 | unitary business group because he or she is ordinarily | ||||||
| 4 | required to apportion business income under different | ||||||
| 5 | subsections of Section 304, but not to exceed the | ||||||
| 6 | addition modification required to be made for the same | ||||||
| 7 | taxable year under Section 203(d)(2)(D-8) for | ||||||
| 8 | intangible expenses and costs paid, accrued, or | ||||||
| 9 | incurred, directly or indirectly, to the same person. | ||||||
| 10 | This subparagraph (S) is exempt from Section 250; and
| ||||||
| 11 | (T) For taxable years ending on or after December | ||||||
| 12 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 13 | add back any insurance premiums under Section | ||||||
| 14 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
| 15 | that part of a reimbursement received from the | ||||||
| 16 | insurance company equal to the amount of the expense or | ||||||
| 17 | loss (including expenses incurred by the insurance | ||||||
| 18 | company) that would have been taken into account as a | ||||||
| 19 | deduction for federal income tax purposes if the | ||||||
| 20 | expense or loss had been uninsured. If a taxpayer makes | ||||||
| 21 | the election provided for by this subparagraph (T), the | ||||||
| 22 | insurer to which the premiums were paid must add back | ||||||
| 23 | to income the amount subtracted by the taxpayer | ||||||
| 24 | pursuant to this subparagraph (T). This subparagraph | ||||||
| 25 | (T) is exempt from the provisions of Section 250.
| ||||||
| |||||||
| |||||||
| 1 | (e) Gross income; adjusted gross income; taxable income. | ||||||
| 2 | (1) In general. Subject to the provisions of paragraph | ||||||
| 3 | (2) and
subsection (b)(3), for purposes of this Section and | ||||||
| 4 | Section 803(e), a
taxpayer's gross income, adjusted gross | ||||||
| 5 | income, or taxable income for
the taxable year shall mean | ||||||
| 6 | the amount of gross income, adjusted gross
income or | ||||||
| 7 | taxable income properly reportable for federal income tax
| ||||||
| 8 | purposes for the taxable year under the provisions of the | ||||||
| 9 | Internal
Revenue Code. Taxable income may be less than | ||||||
| 10 | zero. However, for taxable
years ending on or after | ||||||
| 11 | December 31, 1986, net operating loss
carryforwards from | ||||||
| 12 | taxable years ending prior to December 31, 1986, may not
| ||||||
| 13 | exceed the sum of federal taxable income for the taxable | ||||||
| 14 | year before net
operating loss deduction, plus the excess | ||||||
| 15 | of addition modifications over
subtraction modifications | ||||||
| 16 | for the taxable year. For taxable years ending
prior to | ||||||
| 17 | December 31, 1986, taxable income may never be an amount in | ||||||
| 18 | excess
of the net operating loss for the taxable year as | ||||||
| 19 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
| 20 | Internal Revenue Code, provided that when
taxable income of | ||||||
| 21 | a corporation (other than a Subchapter S corporation),
| ||||||
| 22 | trust, or estate is less than zero and addition | ||||||
| 23 | modifications, other than
those provided by subparagraph | ||||||
| 24 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
| 25 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
| 26 | trusts and estates, exceed subtraction modifications, an | ||||||
| |||||||
| |||||||
| 1 | addition
modification must be made under those | ||||||
| 2 | subparagraphs for any other taxable
year to which the | ||||||
| 3 | taxable income less than zero (net operating loss) is
| ||||||
| 4 | applied under Section 172 of the Internal Revenue Code or | ||||||
| 5 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
| 6 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
| 7 | Revenue Code. | ||||||
| 8 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
| 9 | subsection,
the taxable income properly reportable for | ||||||
| 10 | federal income tax purposes
shall mean: | ||||||
| 11 | (A) Certain life insurance companies. In the case | ||||||
| 12 | of a life
insurance company subject to the tax imposed | ||||||
| 13 | by Section 801 of the
Internal Revenue Code, life | ||||||
| 14 | insurance company taxable income, plus the
amount of | ||||||
| 15 | distribution from pre-1984 policyholder surplus | ||||||
| 16 | accounts as
calculated under Section 815a of the | ||||||
| 17 | Internal Revenue Code; | ||||||
| 18 | (B) Certain other insurance companies. In the case | ||||||
| 19 | of mutual
insurance companies subject to the tax | ||||||
| 20 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
| 21 | insurance company taxable income; | ||||||
| 22 | (C) Regulated investment companies. In the case of | ||||||
| 23 | a regulated
investment company subject to the tax | ||||||
| 24 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
| 25 | investment company taxable income; | ||||||
| 26 | (D) Real estate investment trusts. In the case of a | ||||||
| |||||||
| |||||||
| 1 | real estate
investment trust subject to the tax imposed | ||||||
| 2 | by Section 857 of the
Internal Revenue Code, real | ||||||
| 3 | estate investment trust taxable income; | ||||||
| 4 | (E) Consolidated corporations. In the case of a | ||||||
| 5 | corporation which
is a member of an affiliated group of | ||||||
| 6 | corporations filing a consolidated
income tax return | ||||||
| 7 | for the taxable year for federal income tax purposes,
| ||||||
| 8 | taxable income determined as if such corporation had | ||||||
| 9 | filed a separate
return for federal income tax purposes | ||||||
| 10 | for the taxable year and each
preceding taxable year | ||||||
| 11 | for which it was a member of an affiliated group.
For | ||||||
| 12 | purposes of this subparagraph, the taxpayer's separate | ||||||
| 13 | taxable
income shall be determined as if the election | ||||||
| 14 | provided by Section
243(b)(2) of the Internal Revenue | ||||||
| 15 | Code had been in effect for all such years; | ||||||
| 16 | (F) Cooperatives. In the case of a cooperative | ||||||
| 17 | corporation or
association, the taxable income of such | ||||||
| 18 | organization determined in
accordance with the | ||||||
| 19 | provisions of Section 1381 through 1388 of the
Internal | ||||||
| 20 | Revenue Code, but without regard to the prohibition | ||||||
| 21 | against offsetting losses from patronage activities | ||||||
| 22 | against income from nonpatronage activities; except | ||||||
| 23 | that a cooperative corporation or association may make | ||||||
| 24 | an election to follow its federal income tax treatment | ||||||
| 25 | of patronage losses and nonpatronage losses. In the | ||||||
| 26 | event such election is made, such losses shall be | ||||||
| |||||||
| |||||||
| 1 | computed and carried over in a manner consistent with | ||||||
| 2 | subsection (a) of Section 207 of this Act and | ||||||
| 3 | apportioned by the apportionment factor reported by | ||||||
| 4 | the cooperative on its Illinois income tax return filed | ||||||
| 5 | for the taxable year in which the losses are incurred. | ||||||
| 6 | The election shall be effective for all taxable years | ||||||
| 7 | with original returns due on or after the date of the | ||||||
| 8 | election. In addition, the cooperative may file an | ||||||
| 9 | amended return or returns, as allowed under this Act, | ||||||
| 10 | to provide that the election shall be effective for | ||||||
| 11 | losses incurred or carried forward for taxable years | ||||||
| 12 | occurring prior to the date of the election. Once made, | ||||||
| 13 | the election may only be revoked upon approval of the | ||||||
| 14 | Director. The Department shall adopt rules setting | ||||||
| 15 | forth requirements for documenting the elections and | ||||||
| 16 | any resulting Illinois net loss and the standards to be | ||||||
| 17 | used by the Director in evaluating requests to revoke | ||||||
| 18 | elections. Public Act 96-932 is declaratory of | ||||||
| 19 | existing law; | ||||||
| 20 | (G) Subchapter S corporations. In the case of: (i) | ||||||
| 21 | a Subchapter S
corporation for which there is in effect | ||||||
| 22 | an election for the taxable year
under Section 1362 of | ||||||
| 23 | the Internal Revenue Code, the taxable income of such
| ||||||
| 24 | corporation determined in accordance with Section | ||||||
| 25 | 1363(b) of the Internal
Revenue Code, except that | ||||||
| 26 | taxable income shall take into
account those items | ||||||
| |||||||
| |||||||
| 1 | which are required by Section 1363(b)(1) of the
| ||||||
| 2 | Internal Revenue Code to be separately stated; and (ii) | ||||||
| 3 | a Subchapter
S corporation for which there is in effect | ||||||
| 4 | a federal election to opt out of
the provisions of the | ||||||
| 5 | Subchapter S Revision Act of 1982 and have applied
| ||||||
| 6 | instead the prior federal Subchapter S rules as in | ||||||
| 7 | effect on July 1, 1982,
the taxable income of such | ||||||
| 8 | corporation determined in accordance with the
federal | ||||||
| 9 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
| 10 | (H) Partnerships. In the case of a partnership, | ||||||
| 11 | taxable income
determined in accordance with Section | ||||||
| 12 | 703 of the Internal Revenue Code,
except that taxable | ||||||
| 13 | income shall take into account those items which are
| ||||||
| 14 | required by Section 703(a)(1) to be separately stated | ||||||
| 15 | but which would be
taken into account by an individual | ||||||
| 16 | in calculating his taxable income. | ||||||
| 17 | (3) Recapture of business expenses on disposition of | ||||||
| 18 | asset or business. Notwithstanding any other law to the | ||||||
| 19 | contrary, if in prior years income from an asset or | ||||||
| 20 | business has been classified as business income and in a | ||||||
| 21 | later year is demonstrated to be non-business income, then | ||||||
| 22 | all expenses, without limitation, deducted in such later | ||||||
| 23 | year and in the 2 immediately preceding taxable years | ||||||
| 24 | related to that asset or business that generated the | ||||||
| 25 | non-business income shall be added back and recaptured as | ||||||
| 26 | business income in the year of the disposition of the asset | ||||||
| |||||||
| |||||||
| 1 | or business. Such amount shall be apportioned to Illinois | ||||||
| 2 | using the greater of the apportionment fraction computed | ||||||
| 3 | for the business under Section 304 of this Act for the | ||||||
| 4 | taxable year or the average of the apportionment fractions | ||||||
| 5 | computed for the business under Section 304 of this Act for | ||||||
| 6 | the taxable year and for the 2 immediately preceding | ||||||
| 7 | taxable years.
| ||||||
| 8 | (f) Valuation limitation amount. | ||||||
| 9 | (1) In general. The valuation limitation amount | ||||||
| 10 | referred to in
subsections (a)(2)(G), (c)(2)(I) and | ||||||
| 11 | (d)(2)(E) is an amount equal to: | ||||||
| 12 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
| 13 | amounts (to the
extent consisting of gain reportable | ||||||
| 14 | under the provisions of Section
1245 or 1250 of the | ||||||
| 15 | Internal Revenue Code) for all property in respect
of | ||||||
| 16 | which such gain was reported for the taxable year; plus | ||||||
| 17 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
| 18 | 1969 appreciation
amounts (to the extent consisting of | ||||||
| 19 | capital gain) for all property in
respect of which such | ||||||
| 20 | gain was reported for federal income tax purposes
for | ||||||
| 21 | the taxable year, or (ii) the net capital gain for the | ||||||
| 22 | taxable year,
reduced in either case by any amount of | ||||||
| 23 | such gain included in the amount
determined under | ||||||
| 24 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
| 25 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
| |||||||
| |||||||
| 1 | (A) If the fair market value of property referred | ||||||
| 2 | to in paragraph
(1) was readily ascertainable on August | ||||||
| 3 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
| 4 | such property is the lesser of (i) the excess of
such | ||||||
| 5 | fair market value over the taxpayer's basis (for | ||||||
| 6 | determining gain)
for such property on that date | ||||||
| 7 | (determined under the Internal Revenue
Code as in | ||||||
| 8 | effect on that date), or (ii) the total gain realized | ||||||
| 9 | and
reportable for federal income tax purposes in | ||||||
| 10 | respect of the sale,
exchange or other disposition of | ||||||
| 11 | such property. | ||||||
| 12 | (B) If the fair market value of property referred | ||||||
| 13 | to in paragraph
(1) was not readily ascertainable on | ||||||
| 14 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
| 15 | amount for such property is that amount which bears
the | ||||||
| 16 | same ratio to the total gain reported in respect of the | ||||||
| 17 | property for
federal income tax purposes for the | ||||||
| 18 | taxable year, as the number of full
calendar months in | ||||||
| 19 | that part of the taxpayer's holding period for the
| ||||||
| 20 | property ending July 31, 1969 bears to the number of | ||||||
| 21 | full calendar
months in the taxpayer's entire holding | ||||||
| 22 | period for the
property. | ||||||
| 23 | (C) The Department shall prescribe such | ||||||
| 24 | regulations as may be
necessary to carry out the | ||||||
| 25 | purposes of this paragraph.
| ||||||
| |||||||
| |||||||
| 1 | (g) Double deductions. Unless specifically provided | ||||||
| 2 | otherwise, nothing
in this Section shall permit the same item | ||||||
| 3 | to be deducted more than once.
| ||||||
| 4 | (h) Legislative intention. Except as expressly provided by | ||||||
| 5 | this
Section there shall be no modifications or limitations on | ||||||
| 6 | the amounts
of income, gain, loss or deduction taken into | ||||||
| 7 | account in determining
gross income, adjusted gross income or | ||||||
| 8 | taxable income for federal income
tax purposes for the taxable | ||||||
| 9 | year, or in the amount of such items
entering into the | ||||||
| 10 | computation of base income and net income under this
Act for | ||||||
| 11 | such taxable year, whether in respect of property values as of
| ||||||
| 12 | August 1, 1969 or otherwise. | ||||||
| 13 | (Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18; | ||||||
| 14 | revised 10-29-18.)
| ||||||
| 15 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
| 16 | Sec. 204. Standard exemption.
| ||||||
| 17 | (a) Allowance of exemption. In computing net income under | ||||||
| 18 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
| 19 | amounts determined under
subsections (b), (c) and (d), | ||||||
| 20 | multiplied by a fraction the numerator of which
is the amount | ||||||
| 21 | of the taxpayer's base income allocable to this State for the
| ||||||
| 22 | taxable year and the denominator of which is the taxpayer's | ||||||
| 23 | total base income
for the taxable year.
| ||||||
| 24 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
| |||||||
| |||||||
| 1 | Section,
except as provided by subsection (a) of Section 205 | ||||||
| 2 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
| 3 | amount of $1000, except
that for corporations the basic amount | ||||||
| 4 | shall be zero for tax years ending on
or
after December 31, | ||||||
| 5 | 2003, and for individuals the basic amount shall be:
| ||||||
| 6 | (1) for taxable years ending on or after December 31, | ||||||
| 7 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
| 8 | (2) for taxable years ending on or after December 31, | ||||||
| 9 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
| 10 | (3) for taxable years ending on or after December 31, | ||||||
| 11 | 2000 and prior to December 31, 2012, $2,000;
| ||||||
| 12 | (4) for taxable years ending on or after December 31, | ||||||
| 13 | 2012 and prior to December 31, 2013, $2,050; | ||||||
| 14 | (5) for taxable years ending on or after December 31, | ||||||
| 15 | 2013 and on or before December 31, 2023, $2,050 plus the | ||||||
| 16 | cost-of-living adjustment under subsection (d-5). | ||||||
| 17 | For taxable years ending on or after December 31, 1992, a | ||||||
| 18 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
| 19 | and who is claimed as a dependent
on another person's tax | ||||||
| 20 | return under the Internal Revenue Code shall
not be allowed any | ||||||
| 21 | basic amount under this subsection.
| ||||||
| 22 | (c) Additional amount for individuals. In the case of an | ||||||
| 23 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
| 24 | subsection (a), in
addition to the basic amount provided by | ||||||
| 25 | subsection (b), an additional
exemption equal to the basic | ||||||
| 26 | amount for each
exemption in excess of one
allowable to such | ||||||
| |||||||
| |||||||
| 1 | individual taxpayer for the taxable year under Section
151 of | ||||||
| 2 | the Internal Revenue Code.
| ||||||
| 3 | (d) Additional exemptions for an individual taxpayer and | ||||||
| 4 | his or her
spouse. In the case of an individual taxpayer and | ||||||
| 5 | his or her spouse, he or
she shall each be allowed additional | ||||||
| 6 | exemptions as follows:
| ||||||
| 7 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
| 8 | years of age or older.
| ||||||
| 9 | (A) For taxpayer. An additional exemption of | ||||||
| 10 | $1,000 for the taxpayer if
he or she has attained the | ||||||
| 11 | age of 65 before the end of the taxable year.
| ||||||
| 12 | (B) For spouse when a joint return is not filed. An | ||||||
| 13 | additional
exemption of $1,000 for the spouse of the | ||||||
| 14 | taxpayer if a joint return is not
made by the taxpayer | ||||||
| 15 | and his spouse, and if the spouse has attained the age
| ||||||
| 16 | of 65 before the end of such taxable year, and, for the | ||||||
| 17 | calendar year in
which the taxable year of the taxpayer | ||||||
| 18 | begins, has no gross income and is
not the dependent of | ||||||
| 19 | another taxpayer.
| ||||||
| 20 | (2) Additional exemption for blindness of taxpayer or | ||||||
| 21 | spouse.
| ||||||
| 22 | (A) For taxpayer. An additional exemption of | ||||||
| 23 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
| 24 | end of the taxable year.
| ||||||
| 25 | (B) For spouse when a joint return is not filed. An | ||||||
| 26 | additional
exemption of $1,000 for the spouse of the | ||||||
| |||||||
| |||||||
| 1 | taxpayer if a separate return is made
by the taxpayer, | ||||||
| 2 | and if the spouse is blind and, for the calendar year | ||||||
| 3 | in which
the taxable year of the taxpayer begins, has | ||||||
| 4 | no gross income and is not the
dependent of another | ||||||
| 5 | taxpayer. For purposes of this paragraph, the
| ||||||
| 6 | determination of whether the spouse is blind shall be | ||||||
| 7 | made as of the end of the
taxable year of the taxpayer; | ||||||
| 8 | except that if the spouse dies during such
taxable year | ||||||
| 9 | such determination shall be made as of the time of such | ||||||
| 10 | death.
| ||||||
| 11 | (C) Blindness defined. For purposes of this | ||||||
| 12 | subsection, an individual
is blind only if his or her | ||||||
| 13 | central visual acuity does not exceed 20/200 in
the | ||||||
| 14 | better eye with correcting lenses, or if his or her | ||||||
| 15 | visual acuity is
greater than 20/200 but is accompanied | ||||||
| 16 | by a limitation in the fields of
vision such that the | ||||||
| 17 | widest diameter of the visual fields subtends an angle
| ||||||
| 18 | no greater than 20 degrees.
| ||||||
| 19 | (d-5) Cost-of-living adjustment. For purposes of item (5) | ||||||
| 20 | of subsection (b), the cost-of-living adjustment for any | ||||||
| 21 | calendar year and for taxable years ending prior to the end of | ||||||
| 22 | the subsequent calendar year is equal to $2,050 times the | ||||||
| 23 | percentage (if any) by which: | ||||||
| 24 | (1) the Consumer Price Index for the preceding calendar | ||||||
| 25 | year, exceeds | ||||||
| 26 | (2) the Consumer Price Index for the calendar year | ||||||
| |||||||
| |||||||
| 1 | 2011. | ||||||
| 2 | The Consumer Price Index for any calendar year is the | ||||||
| 3 | average of the Consumer Price Index as of the close of the | ||||||
| 4 | 12-month period ending on August 31 of that calendar year. | ||||||
| 5 | The term "Consumer Price Index" means the last Consumer | ||||||
| 6 | Price Index for All Urban Consumers published by the United | ||||||
| 7 | States Department of Labor or any successor agency. | ||||||
| 8 | If any cost-of-living adjustment is not a multiple of $25, | ||||||
| 9 | that adjustment shall be rounded to the next lowest multiple of | ||||||
| 10 | $25. | ||||||
| 11 | (e) Cross reference. See Article 3 for the manner of | ||||||
| 12 | determining
base income allocable to this State.
| ||||||
| 13 | (f) Application of Section 250. Section 250 does not apply | ||||||
| 14 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
| 15 | (g) Notwithstanding any other provision of law, for taxable | ||||||
| 16 | years beginning on or after January 1, 2017 and beginning prior | ||||||
| 17 | to January 1, 2019, no taxpayer may claim an exemption under | ||||||
| 18 | this Section if the taxpayer's adjusted gross income for the | ||||||
| 19 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
| 20 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
| 21 | of all other taxpayers. | ||||||
| 22 | (Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
| ||||||
| 23 | (35 ILCS 5/208) (from Ch. 120, par. 2-208)
| ||||||
| 24 | Sec. 208. Tax credit for residential real property taxes. | ||||||
| 25 | Beginning with tax years ending on or after December 31, 1991,
| ||||||
| |||||||
| |||||||
| 1 | every individual taxpayer shall be entitled to a tax credit | ||||||
| 2 | equal
to 5% of real property taxes paid by such taxpayer during | ||||||
| 3 | the
taxable year on the principal residence of the taxpayer. In | ||||||
| 4 | the
case of multi-unit or multi-use structures and farm | ||||||
| 5 | dwellings,
the taxes on the taxpayer's principal residence | ||||||
| 6 | shall be that
portion of the total taxes which is attributable | ||||||
| 7 | to such principal
residence. Notwithstanding any other | ||||||
| 8 | provision of law, for taxable years beginning on or after | ||||||
| 9 | January 1, 2017 and beginning prior to January 1, 2019, no | ||||||
| 10 | taxpayer may claim a credit under this Section if the | ||||||
| 11 | taxpayer's adjusted gross income for the taxable year exceeds | ||||||
| 12 | (i) $500,000, in the case of spouses filing a joint federal tax | ||||||
| 13 | return, or (ii) $250,000, in the case of all other taxpayers.
| ||||||
| 14 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
| 15 | (35 ILCS 5/212)
| ||||||
| 16 | Sec. 212. Earned income tax credit.
| ||||||
| 17 | (a) With respect to the federal earned income tax credit | ||||||
| 18 | allowed for the
taxable year under Section 32 of the federal | ||||||
| 19 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
| 20 | is entitled to a credit against the tax imposed by
subsections | ||||||
| 21 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||
| 22 | federal tax credit for each taxable year beginning on or after
| ||||||
| 23 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||
| 24 | 7.5% of the federal tax credit for each taxable year beginning | ||||||
| 25 | on or after January 1, 2012 and ending prior to December 31, | ||||||
| |||||||
| |||||||
| 1 | 2013, (iii) 10% of the federal tax credit for each taxable year | ||||||
| 2 | beginning on or after January 1, 2013 and beginning prior to | ||||||
| 3 | January 1, 2017, (iv) 14% of the federal tax credit for each | ||||||
| 4 | taxable year beginning on or after January 1, 2017 and | ||||||
| 5 | beginning prior to January 1, 2018, and (v) 18% of the federal | ||||||
| 6 | tax credit for each taxable year beginning on or after January | ||||||
| 7 | 1, 2018 and beginning prior to January 1, 2019, and (vi) 10% of | ||||||
| 8 | the of the federal tax credit for each taxable year beginning | ||||||
| 9 | on or after January 1, 2019.
| ||||||
| 10 | For a non-resident or part-year resident, the amount of the | ||||||
| 11 | credit under this
Section shall be in proportion to the amount | ||||||
| 12 | of income attributable to this
State.
| ||||||
| 13 | (b) For taxable years beginning before January 1, 2003, in | ||||||
| 14 | no event
shall a credit under this Section reduce the | ||||||
| 15 | taxpayer's
liability to less than zero. For each taxable year | ||||||
| 16 | beginning on or after
January 1, 2003, if the amount of the | ||||||
| 17 | credit exceeds the income tax liability
for the applicable tax | ||||||
| 18 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
| 19 | The amount of a refund shall not be included in the taxpayer's
| ||||||
| 20 | income or resources for the purposes of determining eligibility | ||||||
| 21 | or benefit
level in any means-tested benefit program | ||||||
| 22 | administered by a governmental entity
unless required by | ||||||
| 23 | federal law.
| ||||||
| 24 | (c) This Section is exempt from the provisions of Section | ||||||
| 25 | 250.
| ||||||
| 26 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
| 2 | Sec. 901. Collection authority. | ||||||
| 3 | (a) In general. The Department shall collect the taxes | ||||||
| 4 | imposed by this Act. The Department
shall collect certified | ||||||
| 5 | past due child support amounts under Section 2505-650
of the | ||||||
| 6 | Department of Revenue Law of the
Civil Administrative Code of | ||||||
| 7 | Illinois. Except as
provided in subsections (b), (c), (e), (f), | ||||||
| 8 | (g), and (h) of this Section, money collected
pursuant to | ||||||
| 9 | subsections (a) and (b) of Section 201 of this Act shall be
| ||||||
| 10 | paid into the General Revenue Fund in the State treasury; money
| ||||||
| 11 | collected pursuant to subsections (c) and (d) of Section 201 of | ||||||
| 12 | this Act
shall be paid into the Personal Property Tax | ||||||
| 13 | Replacement Fund, a special
fund in the State Treasury; and | ||||||
| 14 | money collected under Section 2505-650 of the
Department of | ||||||
| 15 | Revenue Law of the
Civil Administrative Code of Illinois shall | ||||||
| 16 | be paid
into the
Child Support Enforcement Trust Fund, a | ||||||
| 17 | special fund outside the State
Treasury, or
to the State
| ||||||
| 18 | Disbursement Unit established under Section 10-26 of the | ||||||
| 19 | Illinois Public Aid
Code, as directed by the Department of | ||||||
| 20 | Healthcare and Family Services. | ||||||
| 21 | (b) Local Government Distributive Fund. Beginning August | ||||||
| 22 | 1, 1969, and continuing through June 30, 1994, the Treasurer
| ||||||
| 23 | shall transfer each month from the General Revenue Fund to a | ||||||
| 24 | special fund in
the State treasury, to be known as the "Local | ||||||
| 25 | Government Distributive Fund", an
amount equal to 1/12 of the | ||||||
| |||||||
| |||||||
| 1 | net revenue realized from the tax imposed by
subsections (a) | ||||||
| 2 | and (b) of Section 201 of this Act during the preceding month.
| ||||||
| 3 | Beginning July 1, 1994, and continuing through June 30, 1995, | ||||||
| 4 | the Treasurer
shall transfer each month from the General | ||||||
| 5 | Revenue Fund to the Local Government
Distributive Fund an | ||||||
| 6 | amount equal to 1/11 of the net revenue realized from the
tax | ||||||
| 7 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
| 8 | during the
preceding month. Beginning July 1, 1995 and | ||||||
| 9 | continuing through January 31, 2011, the Treasurer shall | ||||||
| 10 | transfer each
month from the General Revenue Fund to the Local | ||||||
| 11 | Government Distributive Fund
an amount equal to the net of (i) | ||||||
| 12 | 1/10 of the net revenue realized from the
tax imposed by
| ||||||
| 13 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
| 14 | Tax Act during
the preceding month
(ii) minus, beginning July | ||||||
| 15 | 1, 2003 and ending June 30, 2004, $6,666,666, and
beginning | ||||||
| 16 | July 1,
2004,
zero. Beginning February 1, 2011, and continuing | ||||||
| 17 | through January 31, 2015, the Treasurer shall transfer each | ||||||
| 18 | month from the General Revenue Fund to the Local Government | ||||||
| 19 | Distributive Fund an amount equal to the sum of (i) 6% (10% of | ||||||
| 20 | the ratio of the 3% individual income tax rate prior to 2011 to | ||||||
| 21 | the 5% individual income tax rate after 2010) of the net | ||||||
| 22 | revenue realized from the tax imposed by subsections (a) and | ||||||
| 23 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
| 24 | estates during the preceding month and (ii) 6.86% (10% of the | ||||||
| 25 | ratio of the 4.8% corporate income tax rate prior to 2011 to | ||||||
| 26 | the 7% corporate income tax rate after 2010) of the net revenue | ||||||
| |||||||
| |||||||
| 1 | realized from the tax imposed by subsections (a) and (b) of | ||||||
| 2 | Section 201 of this Act upon corporations during the preceding | ||||||
| 3 | month. Beginning February 1, 2015 and continuing through July | ||||||
| 4 | 31, 2017, the Treasurer shall transfer each month from the | ||||||
| 5 | General Revenue Fund to the Local Government Distributive Fund | ||||||
| 6 | an amount equal to the sum of (i) 8% (10% of the ratio of the 3% | ||||||
| 7 | individual income tax rate prior to 2011 to the 3.75% | ||||||
| 8 | individual income tax rate after 2014) of the net revenue | ||||||
| 9 | realized from the tax imposed by subsections (a) and (b) of | ||||||
| 10 | Section 201 of this Act upon individuals, trusts, and estates | ||||||
| 11 | during the preceding month and (ii) 9.14% (10% of the ratio of | ||||||
| 12 | the 4.8% corporate income tax rate prior to 2011 to the 5.25% | ||||||
| 13 | corporate income tax rate after 2014) of the net revenue | ||||||
| 14 | realized from the tax imposed by subsections (a) and (b) of | ||||||
| 15 | Section 201 of this Act upon corporations during the preceding | ||||||
| 16 | month. Beginning August 1, 2017 and continuing through January | ||||||
| 17 | 31, 2019, the Treasurer shall transfer each month from the | ||||||
| 18 | General Revenue Fund to the Local Government Distributive Fund | ||||||
| 19 | an amount equal to the sum of (i) 6.06% (10% of the ratio of the | ||||||
| 20 | 3% individual income tax rate prior to 2011 to the 4.95% | ||||||
| 21 | individual income tax rate after July 1, 2017) of the net | ||||||
| 22 | revenue realized from the tax imposed by subsections (a) and | ||||||
| 23 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
| 24 | estates during the preceding month and (ii) 6.85% (10% of the | ||||||
| 25 | ratio of the 4.8% corporate income tax rate prior to 2011 to | ||||||
| 26 | the 7% corporate income tax rate after July 1, 2017) of the net | ||||||
| |||||||
| |||||||
| 1 | revenue realized from the tax imposed by subsections (a) and | ||||||
| 2 | (b) of Section 201 of this Act upon corporations during the | ||||||
| 3 | preceding month. Beginning on February 1, 2019 and continuing | ||||||
| 4 | through January 31, 2025, the Treasurer shall transfer each | ||||||
| 5 | month from the General Revenue Fund to the Local Government | ||||||
| 6 | Distributive Fund an amount equal to the sum of (i) 8% (10% of | ||||||
| 7 | the ratio of the 3% individual income tax rate prior to 2011 to | ||||||
| 8 | the 3.75% individual income tax rate after January 1, 2019) of | ||||||
| 9 | the net revenue realized from the tax imposed by subsections | ||||||
| 10 | (a) and (b) of Section 201 of this Act upon individuals, | ||||||
| 11 | trusts, and estates during the preceding month and (ii) 9.14% | ||||||
| 12 | (10% of the ratio of the 4.8% corporate income tax rate prior | ||||||
| 13 | to 2011 to the 5.25% corporate income tax rate after 2019) of | ||||||
| 14 | the net revenue realized from the tax imposed by subsections | ||||||
| 15 | (a) and (b) of Section 201 of this Act upon corporations during | ||||||
| 16 | the preceding month. Beginning on February 1, 2025, the | ||||||
| 17 | Treasurer shall transfer each
month from the General Revenue | ||||||
| 18 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
| 19 | to 1/10 of the net revenue realized from the
tax imposed on | ||||||
| 20 | individuals, trusts, estates, and corporations by
subsections | ||||||
| 21 | (a) and (b) of Section 201 during
the preceding month. Net | ||||||
| 22 | revenue realized for a month shall be defined as the
revenue | ||||||
| 23 | from the tax imposed by subsections (a) and (b) of Section 201 | ||||||
| 24 | of this
Act which is deposited in the General Revenue Fund, the | ||||||
| 25 | Education Assistance
Fund, the Income Tax Surcharge Local | ||||||
| 26 | Government Distributive Fund, the Fund for the Advancement of | ||||||
| |||||||
| |||||||
| 1 | Education, and the Commitment to Human Services Fund during the
| ||||||
| 2 | month minus the amount paid out of the General Revenue Fund in | ||||||
| 3 | State warrants
during that same month as refunds to taxpayers | ||||||
| 4 | for overpayment of liability
under the tax imposed by | ||||||
| 5 | subsections (a) and (b) of Section 201 of this Act. | ||||||
| 6 | Notwithstanding any provision of law to the contrary, | ||||||
| 7 | beginning on July 6, 2017 (the effective date of Public Act | ||||||
| 8 | 100-23), those amounts required under this subsection (b) to be | ||||||
| 9 | transferred by the Treasurer into the Local Government | ||||||
| 10 | Distributive Fund from the General Revenue Fund shall be | ||||||
| 11 | directly deposited into the Local Government Distributive Fund | ||||||
| 12 | as the revenue is realized from the tax imposed by subsections | ||||||
| 13 | (a) and (b) of Section 201 of this Act. | ||||||
| 14 | For State fiscal year 2018 only, notwithstanding any | ||||||
| 15 | provision of law to the contrary, the total amount of revenue | ||||||
| 16 | and deposits under this Section attributable to revenues | ||||||
| 17 | realized during State fiscal year 2018 shall be reduced by 10%. | ||||||
| 18 | For State fiscal year 2019 only, notwithstanding any | ||||||
| 19 | provision of law to the contrary, the total amount of revenue | ||||||
| 20 | and deposits under this Section attributable to revenues | ||||||
| 21 | realized during State fiscal year 2019 shall be reduced by 5%. | ||||||
| 22 | (c) Deposits Into Income Tax Refund Fund. | ||||||
| 23 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
| 24 | Department shall
deposit a percentage of the amounts | ||||||
| 25 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
| 26 | (3) of Section 201 of this Act into a fund in the State
| ||||||
| |||||||
| |||||||
| 1 | treasury known as the Income Tax Refund Fund. The | ||||||
| 2 | Department shall deposit 6%
of such amounts during the | ||||||
| 3 | period beginning January 1, 1989 and ending on June
30, | ||||||
| 4 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
| 5 | fiscal year
thereafter, the percentage deposited into the | ||||||
| 6 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
| 7 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
| 8 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
| 9 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
| 10 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
| 11 | of Public Act 93-839 (July 30, 2004), the Annual Percentage | ||||||
| 12 | shall be 10% for fiscal year 2005. For fiscal year 2006, | ||||||
| 13 | the Annual Percentage shall be 9.75%. For fiscal
year 2007, | ||||||
| 14 | the Annual Percentage shall be 9.75%. For fiscal year 2008, | ||||||
| 15 | the Annual Percentage shall be 7.75%. For fiscal year 2009, | ||||||
| 16 | the Annual Percentage shall be 9.75%. For fiscal year 2010, | ||||||
| 17 | the Annual Percentage shall be 9.75%. For fiscal year 2011, | ||||||
| 18 | the Annual Percentage shall be 8.75%. For fiscal year 2012, | ||||||
| 19 | the Annual Percentage shall be 8.75%. For fiscal year 2013, | ||||||
| 20 | the Annual Percentage shall be 9.75%. For fiscal year 2014, | ||||||
| 21 | the Annual Percentage shall be 9.5%. For fiscal year 2015, | ||||||
| 22 | the Annual Percentage shall be 10%. For fiscal year 2018, | ||||||
| 23 | the Annual Percentage shall be 9.8%. For fiscal year 2019, | ||||||
| 24 | the Annual Percentage shall be 9.7%. For all other
fiscal | ||||||
| 25 | years, the
Annual Percentage shall be calculated as a | ||||||
| 26 | fraction, the numerator of which
shall be the amount of | ||||||
| |||||||
| |||||||
| 1 | refunds approved for payment by the Department during
the | ||||||
| 2 | preceding fiscal year as a result of overpayment of tax | ||||||
| 3 | liability under
subsections (a) and (b)(1), (2), and (3) of | ||||||
| 4 | Section 201 of this Act plus the
amount of such refunds | ||||||
| 5 | remaining approved but unpaid at the end of the
preceding | ||||||
| 6 | fiscal year, minus the amounts transferred into the Income | ||||||
| 7 | Tax
Refund Fund from the Tobacco Settlement Recovery Fund, | ||||||
| 8 | and
the denominator of which shall be the amounts which | ||||||
| 9 | will be collected pursuant
to subsections (a) and (b)(1), | ||||||
| 10 | (2), and (3) of Section 201 of this Act during
the | ||||||
| 11 | preceding fiscal year; except that in State fiscal year | ||||||
| 12 | 2002, the Annual
Percentage shall in no event exceed 7.6%. | ||||||
| 13 | The Director of Revenue shall
certify the Annual Percentage | ||||||
| 14 | to the Comptroller on the last business day of
the fiscal | ||||||
| 15 | year immediately preceding the fiscal year for which it is | ||||||
| 16 | to be
effective. | ||||||
| 17 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
| 18 | Department shall
deposit a percentage of the amounts | ||||||
| 19 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
| 20 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
| 21 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
| 22 | Department shall deposit 18% of such amounts during the
| ||||||
| 23 | period beginning January 1, 1989 and ending on June 30, | ||||||
| 24 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
| 25 | fiscal year thereafter, the
percentage deposited into the | ||||||
| 26 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
| |||||||
| |||||||
| 1 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
| 2 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
| 3 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
| 4 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
| 5 | of Public Act 93-839 (July 30, 2004), the Annual Percentage | ||||||
| 6 | shall be 24% for fiscal year 2005.
For fiscal year 2006, | ||||||
| 7 | the Annual Percentage shall be 20%. For fiscal
year 2007, | ||||||
| 8 | the Annual Percentage shall be 17.5%. For fiscal year 2008, | ||||||
| 9 | the Annual Percentage shall be 15.5%. For fiscal year 2009, | ||||||
| 10 | the Annual Percentage shall be 17.5%. For fiscal year 2010, | ||||||
| 11 | the Annual Percentage shall be 17.5%. For fiscal year 2011, | ||||||
| 12 | the Annual Percentage shall be 17.5%. For fiscal year 2012, | ||||||
| 13 | the Annual Percentage shall be 17.5%. For fiscal year 2013, | ||||||
| 14 | the Annual Percentage shall be 14%. For fiscal year 2014, | ||||||
| 15 | the Annual Percentage shall be 13.4%. For fiscal year 2015, | ||||||
| 16 | the Annual Percentage shall be 14%. For fiscal year 2018, | ||||||
| 17 | the Annual Percentage shall be 17.5%. For fiscal year 2019, | ||||||
| 18 | the Annual Percentage shall be 15.5%. For all other fiscal | ||||||
| 19 | years, the Annual
Percentage shall be calculated
as a | ||||||
| 20 | fraction, the numerator of which shall be the amount of | ||||||
| 21 | refunds
approved for payment by the Department during the | ||||||
| 22 | preceding fiscal year as
a result of overpayment of tax | ||||||
| 23 | liability under subsections (a) and (b)(6),
(7), and (8), | ||||||
| 24 | (c) and (d) of Section 201 of this Act plus the
amount of | ||||||
| 25 | such refunds remaining approved but unpaid at the end of | ||||||
| 26 | the
preceding fiscal year, and the denominator of
which | ||||||
| |||||||
| |||||||
| 1 | shall be the amounts which will be collected pursuant to | ||||||
| 2 | subsections (a)
and (b)(6), (7), and (8), (c) and (d) of | ||||||
| 3 | Section 201 of this Act during the
preceding fiscal year; | ||||||
| 4 | except that in State fiscal year 2002, the Annual
| ||||||
| 5 | Percentage shall in no event exceed 23%. The Director of | ||||||
| 6 | Revenue shall
certify the Annual Percentage to the | ||||||
| 7 | Comptroller on the last business day of
the fiscal year | ||||||
| 8 | immediately preceding the fiscal year for which it is to be
| ||||||
| 9 | effective. | ||||||
| 10 | (3) The Comptroller shall order transferred and the | ||||||
| 11 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
| 12 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
| 13 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
| 14 | (iii) $35,000,000 in January, 2003. | ||||||
| 15 | (d) Expenditures from Income Tax Refund Fund. | ||||||
| 16 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
| 17 | Refund Fund
shall be expended exclusively for the purpose | ||||||
| 18 | of paying refunds resulting
from overpayment of tax | ||||||
| 19 | liability under Section 201 of this Act
and for
making | ||||||
| 20 | transfers pursuant to this subsection (d). | ||||||
| 21 | (2) The Director shall order payment of refunds | ||||||
| 22 | resulting from
overpayment of tax liability under Section | ||||||
| 23 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
| 24 | extent that amounts collected pursuant
to Section 201 of | ||||||
| 25 | this Act and transfers pursuant to this subsection (d)
and | ||||||
| 26 | item (3) of subsection (c) have been deposited and retained | ||||||
| |||||||
| |||||||
| 1 | in the
Fund. | ||||||
| 2 | (3) As soon as possible after the end of each fiscal | ||||||
| 3 | year, the Director
shall
order transferred and the State | ||||||
| 4 | Treasurer and State Comptroller shall
transfer from the | ||||||
| 5 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
| 6 | Replacement Fund an amount, certified by the Director to | ||||||
| 7 | the Comptroller,
equal to the excess of the amount | ||||||
| 8 | collected pursuant to subsections (c) and
(d) of Section | ||||||
| 9 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
| 10 | during the fiscal year over the amount of refunds resulting | ||||||
| 11 | from
overpayment of tax liability under subsections (c) and | ||||||
| 12 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
| 13 | Refund Fund during the fiscal year. | ||||||
| 14 | (4) As soon as possible after the end of each fiscal | ||||||
| 15 | year, the Director shall
order transferred and the State | ||||||
| 16 | Treasurer and State Comptroller shall
transfer from the | ||||||
| 17 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
| 18 | Refund Fund an amount, certified by the Director to the | ||||||
| 19 | Comptroller, equal
to the excess of the amount of refunds | ||||||
| 20 | resulting from overpayment of tax
liability under | ||||||
| 21 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
| 22 | from the Income Tax Refund Fund during the fiscal year over | ||||||
| 23 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
| 24 | Section 201 of this Act
deposited into the Income Tax | ||||||
| 25 | Refund Fund during the fiscal year. | ||||||
| 26 | (4.5) As soon as possible after the end of fiscal year | ||||||
| |||||||
| |||||||
| 1 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
| 2 | order transferred and the State Treasurer and
State | ||||||
| 3 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
| 4 | to the General
Revenue Fund any surplus remaining in the | ||||||
| 5 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
| 6 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
| 7 | attributable to transfers under item (3) of subsection (c) | ||||||
| 8 | less refunds
resulting from the earned income tax credit. | ||||||
| 9 | (5) This Act shall constitute an irrevocable and | ||||||
| 10 | continuing
appropriation from the Income Tax Refund Fund | ||||||
| 11 | for the purpose of paying
refunds upon the order of the | ||||||
| 12 | Director in accordance with the provisions of
this Section. | ||||||
| 13 | (e) Deposits into the Education Assistance Fund and the | ||||||
| 14 | Income Tax
Surcharge Local Government Distributive Fund. On | ||||||
| 15 | July 1, 1991, and thereafter, of the amounts collected pursuant | ||||||
| 16 | to
subsections (a) and (b) of Section 201 of this Act, minus | ||||||
| 17 | deposits into the
Income Tax Refund Fund, the Department shall | ||||||
| 18 | deposit 7.3% into the
Education Assistance Fund in the State | ||||||
| 19 | Treasury. Beginning July 1, 1991,
and continuing through | ||||||
| 20 | January 31, 1993, of the amounts collected pursuant to
| ||||||
| 21 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
| 22 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
| 23 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
| 24 | Local Government Distributive Fund in the State
Treasury. | ||||||
| 25 | Beginning February 1, 1993 and continuing through June 30, | ||||||
| 26 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
| |||||||
| |||||||
| 1 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
| 2 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
| 3 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
| 4 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
| 5 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
| 6 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
| 7 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
| 8 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
| 9 | Local Government Distributive Fund in the State Treasury. | ||||||
| 10 | (f) Deposits into the Fund for the Advancement of | ||||||
| 11 | Education. Beginning February 1, 2015, the Department shall | ||||||
| 12 | deposit the following portions of the revenue realized from the | ||||||
| 13 | tax imposed upon individuals, trusts, and estates by | ||||||
| 14 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
| 15 | preceding month, minus deposits into the Income Tax Refund | ||||||
| 16 | Fund, into the Fund for the Advancement of Education: | ||||||
| 17 | (1) beginning February 1, 2015, and prior to February | ||||||
| 18 | 1, 2025, 1/30; and | ||||||
| 19 | (2) beginning February 1, 2025, 1/26. | ||||||
| 20 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
| 21 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
| 22 | the Department shall not make the deposits required by this | ||||||
| 23 | subsection (f) on or after the effective date of the reduction. | ||||||
| 24 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
| 25 | Beginning February 1, 2015, the Department shall deposit the | ||||||
| 26 | following portions of the revenue realized from the tax imposed | ||||||
| |||||||
| |||||||
| 1 | upon individuals, trusts, and estates by subsections (a) and | ||||||
| 2 | (b) of Section 201 of this Act during the preceding month, | ||||||
| 3 | minus deposits into the Income Tax Refund Fund, into the | ||||||
| 4 | Commitment to Human Services Fund: | ||||||
| 5 | (1) beginning February 1, 2015, and prior to February | ||||||
| 6 | 1, 2025, 1/30; and | ||||||
| 7 | (2) beginning February 1, 2025, 1/26. | ||||||
| 8 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
| 9 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
| 10 | the Department shall not make the deposits required by this | ||||||
| 11 | subsection (g) on or after the effective date of the reduction. | ||||||
| 12 | (h) Deposits into the Tax Compliance and Administration | ||||||
| 13 | Fund. Beginning on the first day of the first calendar month to | ||||||
| 14 | occur on or after August 26, 2014 (the effective date of Public | ||||||
| 15 | Act 98-1098), each month the Department shall pay into the Tax | ||||||
| 16 | Compliance and Administration Fund, to be used, subject to | ||||||
| 17 | appropriation, to fund additional auditors and compliance | ||||||
| 18 | personnel at the Department, an amount equal to 1/12 of 5% of | ||||||
| 19 | the cash receipts collected during the preceding fiscal year by | ||||||
| 20 | the Audit Bureau of the Department from the tax imposed by | ||||||
| 21 | subsections (a), (b), (c), and (d) of Section 201 of this Act, | ||||||
| 22 | net of deposits into the Income Tax Refund Fund made from those | ||||||
| 23 | cash receipts. | ||||||
| 24 | (Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23, | ||||||
| 25 | eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18; | ||||||
| 26 | 100-863, eff. 8-14-18; revised 10-12-18.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
| ||||||
| 2 | Sec. 1102. Jeopardy assessments.
| ||||||
| 3 | (a) Jeopardy assessment and lien.
| ||||||
| 4 | (1) Assessment. If the Department finds that a taxpayer | ||||||
| 5 | is about to
depart from the State, or to conceal himself or | ||||||
| 6 | his property, or to do any
other act tending to prejudice | ||||||
| 7 | or to render wholly or partly ineffectual
proceedings to | ||||||
| 8 | collect any amount of tax or penalties imposed under this
| ||||||
| 9 | Act unless court proceedings are brought without delay, or | ||||||
| 10 | if the
Department finds that the collection of such amount | ||||||
| 11 | will be jeopardized by
delay, the Department shall give the | ||||||
| 12 | taxpayer notice of such findings and
shall make demand for | ||||||
| 13 | immediate return and payment of such amount,
whereupon such | ||||||
| 14 | amount shall be deemed assessed and shall become | ||||||
| 15 | immediately
due and payable.
| ||||||
| 16 | (2) Filing of lien. If the taxpayer, within 5 days | ||||||
| 17 | after such notice
(or within such extension of time as the | ||||||
| 18 | Department may grant), does not
comply with such notice or | ||||||
| 19 | show to the Department that the findings in such
notice are | ||||||
| 20 | erroneous, the Department may file a notice of jeopardy
| ||||||
| 21 | assessment lien in the office of the recorder of the county | ||||||
| 22 | in which any property of the taxpayer may be located State | ||||||
| 23 | Tax Lien Registry and shall notify the
taxpayer of such | ||||||
| 24 | filing. Such jeopardy assessment lien shall have the same
| ||||||
| 25 | scope and effect as a statutory lien under this Act.
The | ||||||
| |||||||
| |||||||
| 1 | taxpayer is liable for the filing fee incurred by the | ||||||
| 2 | Department for filing the lien and the filing fee incurred | ||||||
| 3 | by the Department to file the release of that lien any | ||||||
| 4 | administrative fee imposed by the Department by rule in | ||||||
| 5 | connection with the State Tax Lien Registry. The filing | ||||||
| 6 | fees shall be paid to the Department in
addition to payment | ||||||
| 7 | of the tax, penalty, and interest included in the amount of
| ||||||
| 8 | the lien.
| ||||||
| 9 | (b) Termination of taxable year. In the case of a tax for a | ||||||
| 10 | current
taxable year, the Director shall declare the taxable | ||||||
| 11 | period of the taxpayer
immediately terminated and his notice | ||||||
| 12 | and demand for a return and immediate
payment of the tax shall | ||||||
| 13 | relate to the period declared terminated,
including therein | ||||||
| 14 | income accrued and deductions incurred up to the date of
| ||||||
| 15 | termination if not otherwise properly includible or deductible | ||||||
| 16 | in respect
of such taxable year.
| ||||||
| 17 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
| 18 | some or
all of the amount for which the jeopardy assessment | ||||||
| 19 | lien against him has
been filed, or that no jeopardy to the | ||||||
| 20 | revenue in fact exists, he may
protest within 20 days after | ||||||
| 21 | being notified by the Department of the filing
of such jeopardy | ||||||
| 22 | assessment lien and request a hearing, whereupon the
Department | ||||||
| 23 | shall hold a hearing in conformity with the provisions of
| ||||||
| 24 | Section 908 and, pursuant thereto, shall notify the taxpayer of | ||||||
| 25 | its
decision as to whether or not such jeopardy assessment lien | ||||||
| 26 | will be
released.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 2 | (35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
| ||||||
| 3 | Sec. 1103. Filing and priority of liens.
| ||||||
| 4 | (a) Filing with Recorder in the State Tax Lien Registry.
| ||||||
| 5 | Nothing in this Article shall be construed
to give the | ||||||
| 6 | Department a preference over the rights of any bona fide
| ||||||
| 7 | purchaser, holder of a security interest, mechanics lienor, | ||||||
| 8 | mortgagee,
or judgment lien creditor arising prior
to the | ||||||
| 9 | filing of a regular notice of lien or a notice of jeopardy
| ||||||
| 10 | assessment lien in the office of the recorder in the county in | ||||||
| 11 | which the property subject to the lien is located State Tax | ||||||
| 12 | Lien Registry. For purposes of this
Section, the term "bona | ||||||
| 13 | fide," shall not include any mortgage of real or
personal | ||||||
| 14 | property or any other credit transaction that results in the
| ||||||
| 15 | mortgagee or the holder of the security acting as trustee for | ||||||
| 16 | unsecured
creditors of the taxpayer mentioned in the notice of | ||||||
| 17 | lien who executed such
chattel or real property mortgage or the | ||||||
| 18 | document evidencing such credit
transaction. Such lien shall be | ||||||
| 19 | inferior to the lien of general taxes,
special assessments and | ||||||
| 20 | special taxes heretofore or hereafter levied by any
political | ||||||
| 21 | subdivision of this State.
| ||||||
| 22 | (b) Filing with Registrar in the State Tax Lien Registry. | ||||||
| 23 | In case title to land to be affected by
the notice of lien or | ||||||
| 24 | notice of jeopardy assessment lien is registered
under the | ||||||
| 25 | provisions of "An Act concerning land titles," approved May 1,
| ||||||
| |||||||
| |||||||
| 1 | 1897, as amended, such notice shall also be filed in the office | ||||||
| 2 | of the
Registrar of Titles of the county within which the | ||||||
| 3 | property subject to the
lien is situated and shall be entered | ||||||
| 4 | upon the register of titles as a
memorial of charge upon each | ||||||
| 5 | folium of the register of titles affected by
such notice State | ||||||
| 6 | Tax Lien Registry, and the Department shall not have a | ||||||
| 7 | preference over the rights
of any bona fide purchaser, | ||||||
| 8 | mortgagee, judgment creditor or other lien
holder arising prior | ||||||
| 9 | to the registration of such notice.
| ||||||
| 10 | (c) Index. The recorder of each county shall procure a file
| ||||||
| 11 | labeled "State Tax Lien Notices" and an index book labeled | ||||||
| 12 | "State Tax Lien
Index." When notice of any lien or jeopardy | ||||||
| 13 | assessment lien is presented to
him for filing, he shall file | ||||||
| 14 | it in numerical order in the file and shall
enter it | ||||||
| 15 | alphabetically in the index. The entry shall show the name and
| ||||||
| 16 | last known address of the person named in the notice, the | ||||||
| 17 | serial number of
the notice, the date and hour of filing, | ||||||
| 18 | whether it is a regular lien or a
jeopardy assessment lien, and | ||||||
| 19 | the amount of tax and penalty due and unpaid,
plus the amount | ||||||
| 20 | of interest due at the time when the notice of lien or
jeopardy | ||||||
| 21 | assessment is filed. The Department of Revenue shall maintain a | ||||||
| 22 | State Tax Lien Index of all tax liens filed in the State Tax | ||||||
| 23 | Lien Registry as provided for by the State Tax Lien | ||||||
| 24 | Registration Act.
| ||||||
| 25 | (d) No recorder or registrar of titles of any county shall | ||||||
| 26 | require
that the Department pay any costs or fees in connection | ||||||
| |||||||
| |||||||
| 1 | with recordation of
any notice or other document filed by the | ||||||
| 2 | Department under this Act at the
time such notice or other | ||||||
| 3 | document is presented for recordation. The
recorder or | ||||||
| 4 | registrar of each county, in order to receive payment for fees
| ||||||
| 5 | or costs incurred by the Department, shall present the | ||||||
| 6 | Department with
monthly statements indicating the amount of | ||||||
| 7 | fees and costs incurred by the
Department and for which no | ||||||
| 8 | payment has been received.
This amendatory Act of 1987 applies | ||||||
| 9 | to all liens heretofore or hereafter filed. (Blank).
| ||||||
| 10 | (e) The taxpayer is liable for the any filing fee incurred | ||||||
| 11 | fees imposed by the Department
for filing the lien in the State | ||||||
| 12 | Tax Lien Registry and the any filing fee incurred fees imposed | ||||||
| 13 | by the Department to file for the
release of that lien. The | ||||||
| 14 | filing fees shall be paid to the Department in
addition to | ||||||
| 15 | payment of the tax, penalty, and interest included in the | ||||||
| 16 | amount of
the lien.
| ||||||
| 17 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 18 | (35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
| ||||||
| 19 | Sec. 1105. Release of liens.
| ||||||
| 20 | (a) In general.
Upon payment by the taxpayer to the | ||||||
| 21 | Department in cash or by guaranteed
remittance of an amount | ||||||
| 22 | representing the filing fees and charges for the lien
and the | ||||||
| 23 | filing fees and charges for the release of that lien,
the | ||||||
| 24 | Department shall release all or any portion of
the property | ||||||
| 25 | subject to any lien provided for in this Act
and file that | ||||||
| |||||||
| |||||||
| 1 | complete or partial release of lien with the recorder of the | ||||||
| 2 | county where the lien was filed in the State Tax Lien Registry
| ||||||
| 3 | if it determines
that the release will not endanger or | ||||||
| 4 | jeopardize the collection of the
amount secured thereby.
| ||||||
| 5 | (b) Judicial determination. If on judicial review the final | ||||||
| 6 | judgment
of the court is that the taxpayer does not owe some or | ||||||
| 7 | all of the amount
secured by the lien against him, or that no | ||||||
| 8 | jeopardy to the revenue exists,
the Department shall release | ||||||
| 9 | its lien to the extent of such finding of
nonliability, or to | ||||||
| 10 | the extent of such finding of no jeopardy to the
revenue.
The | ||||||
| 11 | taxpayer shall, however, be liable for the filing fee paid | ||||||
| 12 | imposed by the
Department to file the lien and the filing fee | ||||||
| 13 | required to file a release of imposed to release
the lien. The | ||||||
| 14 | filing fees shall be paid to the Department.
| ||||||
| 15 | (c) Payment. The Department shall also release its jeopardy
| ||||||
| 16 | assessment lien against the taxpayer whenever the tax and | ||||||
| 17 | penalty covered
by such lien, plus any interest which may be | ||||||
| 18 | due
and an amount representing the filing fee to file the lien | ||||||
| 19 | and the filing fee
required to file a release of imposed to | ||||||
| 20 | release that lien, are paid
by the taxpayer to the Department | ||||||
| 21 | in cash or by guaranteed remittance.
| ||||||
| 22 | (d) Certificate of release. The Department shall issue a | ||||||
| 23 | certificate
of complete or partial release of the lien
upon | ||||||
| 24 | payment by the taxpayer to the Department in cash or by | ||||||
| 25 | guaranteed
remittance of an amount representing the filing fee | ||||||
| 26 | paid imposed by the Department to
file the lien and the filing | ||||||
| |||||||
| |||||||
| 1 | fee required to file the imposed to release of that lien:
| ||||||
| 2 | (1) to the extent that the fair market value of any | ||||||
| 3 | property subject to
the lien exceeds the amount of the lien | ||||||
| 4 | plus the amount of all prior liens
upon such property;
| ||||||
| 5 | (2) to the extent that such lien shall become | ||||||
| 6 | unenforceable;
| ||||||
| 7 | (3) to the extent that the amount of such lien is paid | ||||||
| 8 | by the person
whose property is subject to such lien, | ||||||
| 9 | together with any interest and penalty
which
may become due | ||||||
| 10 | under this Act between the date when the notice of lien is
| ||||||
| 11 | filed and the date when the amount of such lien is paid;
| ||||||
| 12 | (4) to the extent that there is furnished to the | ||||||
| 13 | Department on a form to
be approved and with a surety or | ||||||
| 14 | sureties satisfactory to the Department a
bond that is | ||||||
| 15 | conditioned upon the payment of the amount of such lien,
| ||||||
| 16 | together with any interest which may become due under this | ||||||
| 17 | Act after the
notice of lien is filed, but before the | ||||||
| 18 | amount thereof is fully paid;
| ||||||
| 19 | (5) to the extent and under the circumstances specified | ||||||
| 20 | in this Section.
| ||||||
| 21 | A certificate of complete or partial release of any lien | ||||||
| 22 | shall be held
conclusive that the lien upon the property | ||||||
| 23 | covered by the certificate is
extinguished to the extent | ||||||
| 24 | indicated by such certificate.
| ||||||
| 25 | Such release of lien shall be issued to the person, or his | ||||||
| 26 | agent, against
whom the lien was obtained and shall contain in | ||||||
| |||||||
| |||||||
| 1 | legible letters a statement as
follows: | ||||||
| 2 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
| 3 | BE FILED WITH THE RECORDER OF THE REGISTRAR OF TITLES IN | ||||||
| 4 | WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
| ||||||
| 5 | (e) Filing. When a certificate of complete or partial | ||||||
| 6 | release of lien
issued by the Department is presented for | ||||||
| 7 | filing in the office of the
recorder or Registrar of Titles | ||||||
| 8 | where a notice of lien or notice
of jeopardy assessment lien | ||||||
| 9 | was filed: | ||||||
| 10 | (1) the recorder, in the case of nonregistered | ||||||
| 11 | property, filed in the State Tax Lien Registry, the | ||||||
| 12 | Department
shall
permanently attach the certificate of | ||||||
| 13 | release to the notice of lien or
notice of jeopardy | ||||||
| 14 | assessment lien and shall enter the certificate of
release | ||||||
| 15 | and the date in the "State Tax Lien Index" on the line | ||||||
| 16 | where the
notice of lien or notice of jeopardy assessment | ||||||
| 17 | lien is entered; and .
| ||||||
| 18 | (2) in the case of registered property, the Registrar | ||||||
| 19 | of Titles shall
file and enter upon each folium of the | ||||||
| 20 | register of titles affected thereby
a memorial of the | ||||||
| 21 | certificate of release which memorial when so entered
shall | ||||||
| 22 | act as a release pro tanto of any memorial of such notice | ||||||
| 23 | of lien or
notice of jeopardy assessment lien previously | ||||||
| 24 | filed and registered. | ||||||
| 25 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
| 2 | Sec. 1501. Definitions.
| ||||||
| 3 | (a) In general. When used in this Act, where not
otherwise | ||||||
| 4 | distinctly expressed or manifestly incompatible with the | ||||||
| 5 | intent
thereof:
| ||||||
| 6 | (1) Business income. The term "business income" means | ||||||
| 7 | all income that may be treated as apportionable business | ||||||
| 8 | income under the Constitution of the United States. | ||||||
| 9 | Business income is net of the deductions allocable thereto. | ||||||
| 10 | Such term does not include compensation
or the deductions | ||||||
| 11 | allocable thereto.
For each taxable year beginning on or | ||||||
| 12 | after January 1, 2003, a taxpayer may
elect to treat all | ||||||
| 13 | income other than compensation as business income. This
| ||||||
| 14 | election shall be made in accordance with rules adopted by | ||||||
| 15 | the Department and,
once made, shall be irrevocable.
| ||||||
| 16 | (1.5) Captive real estate investment trust:
| ||||||
| 17 | (A) The term "captive real estate investment | ||||||
| 18 | trust" means a corporation, trust, or association:
| ||||||
| 19 | (i) that is considered a real estate | ||||||
| 20 | investment trust for the taxable year under | ||||||
| 21 | Section 856 of the Internal Revenue Code;
| ||||||
| 22 | (ii) the certificates of beneficial interest | ||||||
| 23 | or shares of which are not regularly traded on an | ||||||
| 24 | established securities market; and | ||||||
| 25 | (iii) of which more than 50% of the voting | ||||||
| 26 | power or value of the beneficial interest or | ||||||
| |||||||
| |||||||
| 1 | shares, at any time during the last half of the | ||||||
| 2 | taxable year, is owned or controlled, directly, | ||||||
| 3 | indirectly, or constructively, by a single | ||||||
| 4 | corporation. | ||||||
| 5 | (B) The term "captive real estate investment | ||||||
| 6 | trust" does not include: | ||||||
| 7 | (i) a real estate investment trust of which | ||||||
| 8 | more than 50% of the voting power or value of the | ||||||
| 9 | beneficial interest or shares is owned or | ||||||
| 10 | controlled, directly, indirectly, or | ||||||
| 11 | constructively, by: | ||||||
| 12 | (a) a real estate investment trust, other | ||||||
| 13 | than a captive real estate investment trust; | ||||||
| 14 | (b) a person who is exempt from taxation | ||||||
| 15 | under Section 501 of the Internal Revenue Code, | ||||||
| 16 | and who is not required to treat income | ||||||
| 17 | received from the real estate investment trust | ||||||
| 18 | as unrelated business taxable income under | ||||||
| 19 | Section 512 of the Internal Revenue Code; | ||||||
| 20 | (c) a listed Australian property trust, if | ||||||
| 21 | no more than 50% of the voting power or value | ||||||
| 22 | of the beneficial interest or shares of that | ||||||
| 23 | trust, at any time during the last half of the | ||||||
| 24 | taxable year, is owned or controlled, directly | ||||||
| 25 | or indirectly, by a single person; | ||||||
| 26 | (d) an entity organized as a trust, | ||||||
| |||||||
| |||||||
| 1 | provided a listed Australian property trust | ||||||
| 2 | described in subparagraph (c) owns or | ||||||
| 3 | controls, directly or indirectly, or | ||||||
| 4 | constructively, 75% or more of the voting power | ||||||
| 5 | or value of the beneficial interests or shares | ||||||
| 6 | of such entity; or | ||||||
| 7 | (e) an entity that is organized outside of | ||||||
| 8 | the laws of the United States and that | ||||||
| 9 | satisfies all of the following criteria: | ||||||
| 10 | (1) at least 75% of the entity's total | ||||||
| 11 | asset value at the close of its taxable | ||||||
| 12 | year is represented by real estate assets | ||||||
| 13 | (as defined in Section 856(c)(5)(B) of the | ||||||
| 14 | Internal Revenue Code, thereby including | ||||||
| 15 | shares or certificates of beneficial | ||||||
| 16 | interest in any real estate investment | ||||||
| 17 | trust), cash and cash equivalents, and | ||||||
| 18 | U.S. Government securities; | ||||||
| 19 | (2) the entity is not subject to tax on | ||||||
| 20 | amounts that are distributed to its | ||||||
| 21 | beneficial owners or is exempt from | ||||||
| 22 | entity-level taxation; | ||||||
| 23 | (3) the entity distributes at least | ||||||
| 24 | 85% of its taxable income (as computed in | ||||||
| 25 | the jurisdiction in which it is organized) | ||||||
| 26 | to the holders of its shares or | ||||||
| |||||||
| |||||||
| 1 | certificates of beneficial interest on an | ||||||
| 2 | annual basis; | ||||||
| 3 | (4) either (i) the shares or | ||||||
| 4 | beneficial interests of the entity are | ||||||
| 5 | regularly traded on an established | ||||||
| 6 | securities market or (ii) not more than 10% | ||||||
| 7 | of the voting power or value in the entity | ||||||
| 8 | is held, directly, indirectly, or | ||||||
| 9 | constructively, by a single entity or | ||||||
| 10 | individual; and | ||||||
| 11 | (5) the entity is organized in a | ||||||
| 12 | country that has entered into a tax treaty | ||||||
| 13 | with the United States; or | ||||||
| 14 | (ii) during its first taxable year for which it | ||||||
| 15 | elects to be treated as a real estate investment | ||||||
| 16 | trust under Section 856(c)(1) of the Internal | ||||||
| 17 | Revenue Code, a real estate investment trust the | ||||||
| 18 | certificates of beneficial interest or shares of | ||||||
| 19 | which are not regularly traded on an established | ||||||
| 20 | securities market, but only if the certificates of | ||||||
| 21 | beneficial interest or shares of the real estate | ||||||
| 22 | investment trust are regularly traded on an | ||||||
| 23 | established securities market prior to the earlier | ||||||
| 24 | of the due date (including extensions) for filing | ||||||
| 25 | its return under this Act for that first taxable | ||||||
| 26 | year or the date it actually files that return. | ||||||
| |||||||
| |||||||
| 1 | (C) For the purposes of this subsection (1.5), the | ||||||
| 2 | constructive ownership rules prescribed under Section | ||||||
| 3 | 318(a) of the Internal Revenue Code, as modified by | ||||||
| 4 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
| 5 | in determining the ownership of stock, assets, or net | ||||||
| 6 | profits of any person.
| ||||||
| 7 | (D) For the purposes of this item (1.5), for | ||||||
| 8 | taxable years ending on or after August 16, 2007, the | ||||||
| 9 | voting power or value of the beneficial interest or | ||||||
| 10 | shares of a real estate investment trust does not | ||||||
| 11 | include any voting power or value of beneficial | ||||||
| 12 | interest or shares in a real estate investment trust | ||||||
| 13 | held directly or indirectly in a segregated asset | ||||||
| 14 | account by a life insurance company (as described in | ||||||
| 15 | Section 817 of the Internal Revenue Code) to the extent | ||||||
| 16 | such voting power or value is for the benefit of | ||||||
| 17 | entities or persons who are either immune from taxation | ||||||
| 18 | or exempt from taxation under subtitle A of the | ||||||
| 19 | Internal Revenue Code.
| ||||||
| 20 | (2) Commercial domicile. The term "commercial | ||||||
| 21 | domicile" means the
principal
place from which the trade or | ||||||
| 22 | business of the taxpayer is directed or managed.
| ||||||
| 23 | (3) Compensation. The term "compensation" means wages, | ||||||
| 24 | salaries,
commissions
and any other form of remuneration | ||||||
| 25 | paid to employees for personal services.
| ||||||
| 26 | (4) Corporation. The term "corporation" includes | ||||||
| |||||||
| |||||||
| 1 | associations, joint-stock
companies, insurance companies | ||||||
| 2 | and cooperatives. Any entity, including a
limited | ||||||
| 3 | liability company formed under the Illinois Limited | ||||||
| 4 | Liability Company
Act, shall be treated as a corporation if | ||||||
| 5 | it is so classified for federal
income tax purposes.
| ||||||
| 6 | (5) Department. The term "Department" means the | ||||||
| 7 | Department of Revenue of
this State.
| ||||||
| 8 | (6) Director. The term "Director" means the Director of | ||||||
| 9 | Revenue of this
State.
| ||||||
| 10 | (7) Fiduciary. The term "fiduciary" means a guardian, | ||||||
| 11 | trustee, executor,
administrator, receiver, or any person | ||||||
| 12 | acting in any fiduciary capacity for any
person.
| ||||||
| 13 | (8) Financial organization.
| ||||||
| 14 | (A) The term "financial organization" means
any
| ||||||
| 15 | bank, bank holding company, trust company, savings | ||||||
| 16 | bank, industrial bank,
land bank, safe deposit | ||||||
| 17 | company, private banker, savings and loan association,
| ||||||
| 18 | building and loan association, credit union, currency | ||||||
| 19 | exchange, cooperative
bank, small loan company, sales | ||||||
| 20 | finance company, investment company, or any
person | ||||||
| 21 | which is owned by a bank or bank holding company. For | ||||||
| 22 | the purpose of
this Section a "person" will include | ||||||
| 23 | only those persons which a bank holding
company may | ||||||
| 24 | acquire and hold an interest in, directly or | ||||||
| 25 | indirectly, under the
provisions of the Bank Holding | ||||||
| 26 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
| |||||||
| |||||||
| 1 | where interests in any person must be disposed of | ||||||
| 2 | within certain
required time limits under the Bank | ||||||
| 3 | Holding Company Act of 1956.
| ||||||
| 4 | (B) For purposes of subparagraph (A) of this | ||||||
| 5 | paragraph, the term
"bank" includes (i) any entity that | ||||||
| 6 | is regulated by the Comptroller of the
Currency under | ||||||
| 7 | the National Bank Act, or by the Federal Reserve Board, | ||||||
| 8 | or by
the
Federal Deposit Insurance Corporation and | ||||||
| 9 | (ii) any federally or State chartered
bank
operating as | ||||||
| 10 | a credit card bank.
| ||||||
| 11 | (C) For purposes of subparagraph (A) of this | ||||||
| 12 | paragraph, the term
"sales finance company" has the | ||||||
| 13 | meaning provided in the following item (i) or
(ii):
| ||||||
| 14 | (i) A person primarily engaged in one or more | ||||||
| 15 | of the following
businesses: the business of | ||||||
| 16 | purchasing customer receivables, the business
of | ||||||
| 17 | making loans upon the security of customer | ||||||
| 18 | receivables, the
business of making loans for the | ||||||
| 19 | express purpose of funding purchases of
tangible | ||||||
| 20 | personal property or services by the borrower, or | ||||||
| 21 | the business of
finance leasing. For purposes of | ||||||
| 22 | this item (i), "customer receivable"
means:
| ||||||
| 23 | (a) a retail installment contract or | ||||||
| 24 | retail charge agreement within
the
meaning
of | ||||||
| 25 | the Sales Finance Agency Act, the Retail | ||||||
| 26 | Installment Sales Act, or the
Motor Vehicle | ||||||
| |||||||
| |||||||
| 1 | Retail Installment Sales Act;
| ||||||
| 2 | (b) an installment, charge, credit, or | ||||||
| 3 | similar contract or agreement
arising from
the | ||||||
| 4 | sale of tangible personal property or services | ||||||
| 5 | in a transaction involving
a deferred payment | ||||||
| 6 | price payable in one or more installments | ||||||
| 7 | subsequent
to the sale; or
| ||||||
| 8 | (c) the outstanding balance of a contract | ||||||
| 9 | or agreement described in
provisions
(a) or (b) | ||||||
| 10 | of this item (i).
| ||||||
| 11 | A customer receivable need not provide for | ||||||
| 12 | payment of interest on
deferred
payments. A sales | ||||||
| 13 | finance company may purchase a customer receivable | ||||||
| 14 | from, or
make a loan secured by a customer | ||||||
| 15 | receivable to, the seller in the original
| ||||||
| 16 | transaction or to a person who purchased the | ||||||
| 17 | customer receivable directly or
indirectly from | ||||||
| 18 | that seller.
| ||||||
| 19 | (ii) A corporation meeting each of the | ||||||
| 20 | following criteria:
| ||||||
| 21 | (a) the corporation must be a member of an | ||||||
| 22 | "affiliated group" within
the
meaning of | ||||||
| 23 | Section 1504(a) of the Internal Revenue Code, | ||||||
| 24 | determined
without regard to Section 1504(b) | ||||||
| 25 | of the Internal Revenue Code;
| ||||||
| 26 | (b) more than 50% of the gross income of | ||||||
| |||||||
| |||||||
| 1 | the corporation for the
taxable
year
must be | ||||||
| 2 | interest income derived from qualifying loans. | ||||||
| 3 | A "qualifying
loan" is a loan made to a member | ||||||
| 4 | of the corporation's affiliated group that
| ||||||
| 5 | originates customer receivables (within the | ||||||
| 6 | meaning of item (i)) or to whom
customer | ||||||
| 7 | receivables originated by a member of the | ||||||
| 8 | affiliated group have been
transferred, to
the | ||||||
| 9 | extent the average outstanding balance of | ||||||
| 10 | loans from that corporation
to members of its | ||||||
| 11 | affiliated group during the taxable year do not | ||||||
| 12 | exceed
the limitation amount for that | ||||||
| 13 | corporation. The "limitation amount" for a
| ||||||
| 14 | corporation is the average outstanding | ||||||
| 15 | balances during the taxable year of
customer | ||||||
| 16 | receivables (within the meaning of item (i)) | ||||||
| 17 | originated by
all members of the affiliated | ||||||
| 18 | group.
If the average outstanding balances of | ||||||
| 19 | the
loans made by a corporation to members of | ||||||
| 20 | its affiliated group exceed the
limitation | ||||||
| 21 | amount, the interest income of that | ||||||
| 22 | corporation from qualifying
loans shall be | ||||||
| 23 | equal to its interest income from loans to | ||||||
| 24 | members of its
affiliated groups times a | ||||||
| 25 | fraction equal to the limitation amount | ||||||
| 26 | divided by
the average outstanding balances of | ||||||
| |||||||
| |||||||
| 1 | the loans made by that corporation to
members | ||||||
| 2 | of its affiliated group;
| ||||||
| 3 | (c) the total of all shareholder's equity | ||||||
| 4 | (including, without
limitation,
paid-in
| ||||||
| 5 | capital on common and preferred stock and | ||||||
| 6 | retained earnings) of the
corporation plus the | ||||||
| 7 | total of all of its loans, advances, and other
| ||||||
| 8 | obligations payable or owed to members of its | ||||||
| 9 | affiliated group may not
exceed 20% of the | ||||||
| 10 | total assets of the corporation at any time | ||||||
| 11 | during the tax
year; and
| ||||||
| 12 | (d) more than 50% of all interest-bearing | ||||||
| 13 | obligations of the
affiliated group payable to | ||||||
| 14 | persons outside the group determined in | ||||||
| 15 | accordance
with generally accepted accounting | ||||||
| 16 | principles must be obligations of the
| ||||||
| 17 | corporation.
| ||||||
| 18 | This amendatory Act of the 91st General Assembly is | ||||||
| 19 | declaratory of
existing
law.
| ||||||
| 20 | (D) Subparagraphs
(B) and (C) of this paragraph are | ||||||
| 21 | declaratory of
existing law and apply retroactively, | ||||||
| 22 | for all tax years beginning on or before
December 31, | ||||||
| 23 | 1996,
to all original returns, to all amended returns | ||||||
| 24 | filed no later than 30
days after the effective date of | ||||||
| 25 | this amendatory Act of 1996, and to all
notices issued | ||||||
| 26 | on or before the effective date of this amendatory Act | ||||||
| |||||||
| |||||||
| 1 | of 1996
under subsection (a) of Section 903, subsection | ||||||
| 2 | (a) of Section 904,
subsection (e) of Section 909, or | ||||||
| 3 | Section 912.
A taxpayer that is a "financial | ||||||
| 4 | organization" that engages in any transaction
with an | ||||||
| 5 | affiliate shall be a "financial organization" for all | ||||||
| 6 | purposes of this
Act.
| ||||||
| 7 | (E) For all tax years beginning on or
before | ||||||
| 8 | December 31, 1996, a taxpayer that falls within the | ||||||
| 9 | definition
of a
"financial organization" under | ||||||
| 10 | subparagraphs (B) or (C) of this paragraph, but
who | ||||||
| 11 | does
not fall within the definition of a "financial | ||||||
| 12 | organization" under the Proposed
Regulations issued by | ||||||
| 13 | the Department of Revenue on July 19, 1996, may
| ||||||
| 14 | irrevocably elect to apply the Proposed Regulations | ||||||
| 15 | for all of those years as
though the Proposed | ||||||
| 16 | Regulations had been lawfully promulgated, adopted, | ||||||
| 17 | and in
effect for all of those years. For purposes of | ||||||
| 18 | applying subparagraphs (B) or
(C) of
this
paragraph to | ||||||
| 19 | all of those years, the election allowed by this | ||||||
| 20 | subparagraph
applies only to the taxpayer making the | ||||||
| 21 | election and to those members of the
taxpayer's unitary | ||||||
| 22 | business group who are ordinarily required to | ||||||
| 23 | apportion
business income under the same subsection of | ||||||
| 24 | Section 304 of this Act as the
taxpayer making the | ||||||
| 25 | election. No election allowed by this subparagraph | ||||||
| 26 | shall
be made under a claim
filed under subsection (d) | ||||||
| |||||||
| |||||||
| 1 | of Section 909 more than 30 days after the
effective | ||||||
| 2 | date of this amendatory Act of 1996.
| ||||||
| 3 | (F) Finance Leases. For purposes of this | ||||||
| 4 | subsection, a finance lease
shall be treated as a loan | ||||||
| 5 | or other extension of credit, rather than as a
lease,
| ||||||
| 6 | regardless of how the transaction is characterized for | ||||||
| 7 | any other purpose,
including the purposes of any | ||||||
| 8 | regulatory agency to which the lessor is subject.
A | ||||||
| 9 | finance lease is any transaction in the form of a lease | ||||||
| 10 | in which the lessee
is treated as the owner of the | ||||||
| 11 | leased asset entitled to any deduction for
| ||||||
| 12 | depreciation allowed under Section 167 of the Internal | ||||||
| 13 | Revenue Code.
| ||||||
| 14 | (9) Fiscal year. The term "fiscal year" means an | ||||||
| 15 | accounting period of
12 months ending on the last day of | ||||||
| 16 | any month other than December.
| ||||||
| 17 | (9.5) Fixed place of business. The term "fixed place of | ||||||
| 18 | business" has the same meaning as that term is given in | ||||||
| 19 | Section 864 of the Internal Revenue Code and the related | ||||||
| 20 | Treasury regulations.
| ||||||
| 21 | (10) Includes and including. The terms "includes" and | ||||||
| 22 | "including" when
used in a definition contained in this Act | ||||||
| 23 | shall not be deemed to exclude
other things otherwise | ||||||
| 24 | within the meaning of the term defined.
| ||||||
| 25 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
| 26 | Code" means the
United States Internal Revenue Code of 1954 | ||||||
| |||||||
| |||||||
| 1 | or any successor law or laws
relating to federal income | ||||||
| 2 | taxes in effect for the taxable year.
| ||||||
| 3 | (11.5) Investment partnership. | ||||||
| 4 | (A) The term "investment partnership" means any | ||||||
| 5 | entity that is treated as a partnership for federal | ||||||
| 6 | income tax purposes that meets the following | ||||||
| 7 | requirements: | ||||||
| 8 | (i) no less than 90% of the partnership's cost | ||||||
| 9 | of its total assets consists of qualifying | ||||||
| 10 | investment securities, deposits at banks or other | ||||||
| 11 | financial institutions, and office space and | ||||||
| 12 | equipment reasonably necessary to carry on its | ||||||
| 13 | activities as an investment partnership; | ||||||
| 14 | (ii) no less than 90% of its gross income | ||||||
| 15 | consists of interest, dividends, and gains from | ||||||
| 16 | the sale or exchange of qualifying investment | ||||||
| 17 | securities; and
| ||||||
| 18 | (iii) the partnership is not a dealer in | ||||||
| 19 | qualifying investment securities. | ||||||
| 20 | (B) For purposes of this paragraph (11.5), the term | ||||||
| 21 | "qualifying investment securities" includes all of the | ||||||
| 22 | following:
| ||||||
| 23 | (i) common stock, including preferred or debt | ||||||
| 24 | securities convertible into common stock, and | ||||||
| 25 | preferred stock; | ||||||
| 26 | (ii) bonds, debentures, and other debt | ||||||
| |||||||
| |||||||
| 1 | securities; | ||||||
| 2 | (iii) foreign and domestic currency deposits | ||||||
| 3 | secured by federal, state, or local governmental | ||||||
| 4 | agencies; | ||||||
| 5 | (iv) mortgage or asset-backed securities | ||||||
| 6 | secured by federal, state, or local governmental | ||||||
| 7 | agencies; | ||||||
| 8 | (v) repurchase agreements and loan | ||||||
| 9 | participations; | ||||||
| 10 | (vi) foreign currency exchange contracts and | ||||||
| 11 | forward and futures contracts on foreign | ||||||
| 12 | currencies; | ||||||
| 13 | (vii) stock and bond index securities and | ||||||
| 14 | futures contracts and other similar financial | ||||||
| 15 | securities and futures contracts on those | ||||||
| 16 | securities;
| ||||||
| 17 | (viii) options for the purchase or sale of any | ||||||
| 18 | of the securities, currencies, contracts, or | ||||||
| 19 | financial instruments described in items (i) to | ||||||
| 20 | (vii), inclusive;
| ||||||
| 21 | (ix) regulated futures contracts;
| ||||||
| 22 | (x) commodities (not described in Section | ||||||
| 23 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
| 24 | futures, forwards, and options with respect to | ||||||
| 25 | such commodities, provided, however, that any item | ||||||
| 26 | of a physical commodity to which title is actually | ||||||
| |||||||
| |||||||
| 1 | acquired in the partnership's capacity as a dealer | ||||||
| 2 | in such commodity shall not be a qualifying | ||||||
| 3 | investment security;
| ||||||
| 4 | (xi) derivatives; and
| ||||||
| 5 | (xii) a partnership interest in another | ||||||
| 6 | partnership that is an investment partnership.
| ||||||
| 7 | (12) Mathematical error. The term "mathematical error" | ||||||
| 8 | includes the
following types of errors, omissions, or | ||||||
| 9 | defects in a return filed by a
taxpayer which prevents | ||||||
| 10 | acceptance of the return as filed for processing:
| ||||||
| 11 | (A) arithmetic errors or incorrect computations on | ||||||
| 12 | the return or
supporting schedules;
| ||||||
| 13 | (B) entries on the wrong lines;
| ||||||
| 14 | (C) omission of required supporting forms or | ||||||
| 15 | schedules or the omission
of the information in whole | ||||||
| 16 | or in part called for thereon; and
| ||||||
| 17 | (D) an attempt to claim, exclude, deduct, or | ||||||
| 18 | improperly report, in a
manner
directly contrary to the | ||||||
| 19 | provisions of the Act and regulations thereunder
any | ||||||
| 20 | item of income, exemption, deduction, or credit.
| ||||||
| 21 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
| 22 | means all income
other than business income or | ||||||
| 23 | compensation.
| ||||||
| 24 | (14) Nonresident. The term "nonresident" means a | ||||||
| 25 | person who is not a
resident.
| ||||||
| 26 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
| |||||||
| |||||||
| 1 | "incurred" and
"accrued"
shall be construed according to | ||||||
| 2 | the method of accounting upon the basis
of which the | ||||||
| 3 | person's base income is computed under this Act.
| ||||||
| 4 | (16) Partnership and partner. The term "partnership" | ||||||
| 5 | includes a syndicate,
group, pool, joint venture or other | ||||||
| 6 | unincorporated organization, through
or by means of which | ||||||
| 7 | any business, financial operation, or venture is carried
| ||||||
| 8 | on, and which is not, within the meaning of this Act, a | ||||||
| 9 | trust or estate
or a corporation; and the term "partner" | ||||||
| 10 | includes a member in such syndicate,
group, pool, joint | ||||||
| 11 | venture or organization.
| ||||||
| 12 | The term "partnership" includes any entity, including | ||||||
| 13 | a limited
liability company formed under the Illinois
| ||||||
| 14 | Limited Liability Company Act, classified as a partnership | ||||||
| 15 | for federal income tax purposes.
| ||||||
| 16 | The term "partnership" does not include a syndicate, | ||||||
| 17 | group, pool,
joint venture, or other unincorporated | ||||||
| 18 | organization established for the
sole purpose of playing | ||||||
| 19 | the Illinois State Lottery.
| ||||||
| 20 | (17) Part-year resident. The term "part-year resident" | ||||||
| 21 | means an individual
who became a resident during the | ||||||
| 22 | taxable year or ceased to be a resident
during the taxable | ||||||
| 23 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
| 24 | with presence in this State for other than a temporary or | ||||||
| 25 | transitory
purpose and ceases with absence from this State | ||||||
| 26 | for other than a temporary or
transitory purpose. Under | ||||||
| |||||||
| |||||||
| 1 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
| 2 | establishment of domicile in this State and ceases with the
| ||||||
| 3 | establishment of domicile in another State.
| ||||||
| 4 | (18) Person. The term "person" shall be construed to | ||||||
| 5 | mean and include
an individual, a trust, estate, | ||||||
| 6 | partnership, association, firm, company,
corporation, | ||||||
| 7 | limited liability company, or fiduciary. For purposes of | ||||||
| 8 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
| 9 | individual, (ii) a
corporation, (iii) an officer, agent, or | ||||||
| 10 | employee of a
corporation, (iv) a member, agent or employee | ||||||
| 11 | of a partnership, or (v)
a member,
manager, employee, | ||||||
| 12 | officer, director, or agent of a limited liability company
| ||||||
| 13 | who in such capacity commits an offense specified in | ||||||
| 14 | Section 1301 and 1302.
| ||||||
| 15 | (18A) Records. The term "records" includes all data | ||||||
| 16 | maintained by the
taxpayer, whether on paper, microfilm, | ||||||
| 17 | microfiche, or any type of
machine-sensible data | ||||||
| 18 | compilation.
| ||||||
| 19 | (19) Regulations. The term "regulations" includes | ||||||
| 20 | rules promulgated and
forms prescribed by the Department.
| ||||||
| 21 | (20) Resident. The term "resident" means:
| ||||||
| 22 | (A) an individual (i) who is
in this State for | ||||||
| 23 | other than a temporary or transitory purpose during the
| ||||||
| 24 | taxable year; or (ii) who is domiciled in this State | ||||||
| 25 | but is absent from
the State for a temporary or | ||||||
| 26 | transitory purpose during the taxable year;
| ||||||
| |||||||
| |||||||
| 1 | (B) The estate of a decedent who at his or her | ||||||
| 2 | death was domiciled in
this
State;
| ||||||
| 3 | (C) A trust created by a will of a decedent who at | ||||||
| 4 | his death was
domiciled
in this State; and
| ||||||
| 5 | (D) An irrevocable trust, the grantor of which was | ||||||
| 6 | domiciled in this
State
at the time such trust became | ||||||
| 7 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
| 8 | shall be considered irrevocable to the extent that the | ||||||
| 9 | grantor is
not treated as the owner thereof under | ||||||
| 10 | Sections 671 through 678 of the Internal
Revenue Code.
| ||||||
| 11 | (21) Sales. The term "sales" means all gross receipts | ||||||
| 12 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
| 13 | 303.
| ||||||
| 14 | (22) State. The term "state" when applied to a | ||||||
| 15 | jurisdiction other than
this State means any state of the | ||||||
| 16 | United States, the District of Columbia,
the Commonwealth | ||||||
| 17 | of Puerto Rico, any Territory or Possession of the United
| ||||||
| 18 | States, and any foreign country, or any political | ||||||
| 19 | subdivision of any of the
foregoing. For purposes of the | ||||||
| 20 | foreign tax credit under Section 601, the
term "state" | ||||||
| 21 | means any state of the United States, the District of | ||||||
| 22 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
| 23 | territory or possession of the
United States, or any | ||||||
| 24 | political subdivision of any of the foregoing,
effective | ||||||
| 25 | for tax years ending on or after December 31, 1989.
| ||||||
| 26 | (23) Taxable year. The term "taxable year" means the | ||||||
| |||||||
| |||||||
| 1 | calendar year, or
the fiscal year ending during such | ||||||
| 2 | calendar year, upon the basis of which
the base income is | ||||||
| 3 | computed under this Act. "Taxable year" means, in the
case | ||||||
| 4 | of a return made for a fractional part of a year under the | ||||||
| 5 | provisions
of this Act, the period for which such return is | ||||||
| 6 | made.
| ||||||
| 7 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
| 8 | subject to the tax
imposed by this Act.
| ||||||
| 9 | (25) International banking facility. The term | ||||||
| 10 | international banking
facility shall have the same meaning | ||||||
| 11 | as is set forth in the Illinois Banking
Act or as is set | ||||||
| 12 | forth in the laws of the United States or regulations of
| ||||||
| 13 | the Board of Governors of the Federal Reserve System.
| ||||||
| 14 | (26) Income Tax Return Preparer.
| ||||||
| 15 | (A) The term "income tax return preparer"
means any | ||||||
| 16 | person who prepares for compensation, or who employs | ||||||
| 17 | one or more
persons to prepare for compensation, any | ||||||
| 18 | return of tax imposed by this Act
or any claim for | ||||||
| 19 | refund of tax imposed by this Act. The preparation of a
| ||||||
| 20 | substantial portion of a return or claim for refund | ||||||
| 21 | shall be treated as
the preparation of that return or | ||||||
| 22 | claim for refund.
| ||||||
| 23 | (B) A person is not an income tax return preparer | ||||||
| 24 | if all he or she does
is
| ||||||
| 25 | (i) furnish typing, reproducing, or other | ||||||
| 26 | mechanical assistance;
| ||||||
| |||||||
| |||||||
| 1 | (ii) prepare returns or claims for refunds for | ||||||
| 2 | the employer by whom he
or she is regularly and | ||||||
| 3 | continuously employed;
| ||||||
| 4 | (iii) prepare as a fiduciary returns or claims | ||||||
| 5 | for refunds for any
person; or
| ||||||
| 6 | (iv) prepare claims for refunds for a taxpayer | ||||||
| 7 | in response to any
notice
of deficiency issued to | ||||||
| 8 | that taxpayer or in response to any waiver of
| ||||||
| 9 | restriction after the commencement of an audit of | ||||||
| 10 | that taxpayer or of another
taxpayer if a | ||||||
| 11 | determination in the audit of the other taxpayer | ||||||
| 12 | directly or
indirectly affects the tax liability | ||||||
| 13 | of the taxpayer whose claims he or she is
| ||||||
| 14 | preparing.
| ||||||
| 15 | (27) Unitary business group. | ||||||
| 16 | (A) The term "unitary business group" means
a group | ||||||
| 17 | of persons related through common ownership whose | ||||||
| 18 | business activities
are integrated with, dependent | ||||||
| 19 | upon and contribute to each other. The group
will not | ||||||
| 20 | include those members whose business activity outside | ||||||
| 21 | the United
States is 80% or more of any such member's | ||||||
| 22 | total business activity; for
purposes of this | ||||||
| 23 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
| 24 | business
activity within the United States shall be | ||||||
| 25 | measured by means of the factors
ordinarily applicable | ||||||
| 26 | under subsections (a), (b), (c), (d), or (h)
of Section
| ||||||
| |||||||
| |||||||
| 1 | 304 except that, in the case of members ordinarily | ||||||
| 2 | required to apportion
business income by means of the 3 | ||||||
| 3 | factor formula of property, payroll and sales
| ||||||
| 4 | specified in subsection (a) of Section 304, including | ||||||
| 5 | the
formula as weighted in subsection (h) of Section | ||||||
| 6 | 304, such members shall
not use the sales factor in the | ||||||
| 7 | computation and the results of the property
and payroll | ||||||
| 8 | factor computations of subsection (a) of Section 304 | ||||||
| 9 | shall be
divided by 2 (by one if either
the property or | ||||||
| 10 | payroll factor has a denominator of zero). The | ||||||
| 11 | computation
required by the preceding sentence shall, | ||||||
| 12 | in each case, involve the division of
the member's | ||||||
| 13 | property, payroll, or revenue miles in the United | ||||||
| 14 | States,
insurance premiums on property or risk in the | ||||||
| 15 | United States, or financial
organization business | ||||||
| 16 | income from sources within the United States, as the
| ||||||
| 17 | case may be, by the respective worldwide figures for | ||||||
| 18 | such items. Common
ownership in the case of | ||||||
| 19 | corporations is the direct or indirect control or
| ||||||
| 20 | ownership of more than 50% of the outstanding voting | ||||||
| 21 | stock of the persons
carrying on unitary business | ||||||
| 22 | activity. Unitary business activity can
ordinarily be | ||||||
| 23 | illustrated where the activities of the members are: | ||||||
| 24 | (1) in the
same general line (such as manufacturing, | ||||||
| 25 | wholesaling, retailing of tangible
personal property, | ||||||
| 26 | insurance, transportation or finance); or (2) are | ||||||
| |||||||
| |||||||
| 1 | steps in a
vertically structured enterprise or process | ||||||
| 2 | (such as the steps involved in the
production of | ||||||
| 3 | natural resources, which might include exploration, | ||||||
| 4 | mining,
refining, and marketing); and, in either | ||||||
| 5 | instance, the members are functionally
integrated | ||||||
| 6 | through the exercise of strong centralized management | ||||||
| 7 | (where, for
example, authority over such matters as | ||||||
| 8 | purchasing, financing, tax compliance,
product line, | ||||||
| 9 | personnel, marketing and capital investment is not | ||||||
| 10 | left to each
member).
| ||||||
| 11 | (B) In no event, for taxable years ending prior to | ||||||
| 12 | December 31, 2017 or ending after December 31, 2018, | ||||||
| 13 | shall any
unitary business group include members
which | ||||||
| 14 | are ordinarily required to apportion business income | ||||||
| 15 | under different
subsections of Section 304 except that | ||||||
| 16 | for tax years ending on or after
December 31, 1987 this | ||||||
| 17 | prohibition shall not apply to a holding company that | ||||||
| 18 | would otherwise be a member of a unitary business group | ||||||
| 19 | with taxpayers that apportion business income under | ||||||
| 20 | any of subsections (b), (c), (c-1), or (d) of Section | ||||||
| 21 | 304. If a unitary business
group would, but for the | ||||||
| 22 | preceding sentence, include members that are
| ||||||
| 23 | ordinarily required to apportion business income under | ||||||
| 24 | different subsections of
Section 304, then for each | ||||||
| 25 | subsection of Section 304 for which there are two or
| ||||||
| 26 | more members, there shall be a separate unitary | ||||||
| |||||||
| |||||||
| 1 | business group composed of such
members. For purposes | ||||||
| 2 | of the preceding two sentences, a member is "ordinarily
| ||||||
| 3 | required to apportion business income" under a | ||||||
| 4 | particular subsection of Section
304 if it would be | ||||||
| 5 | required to use the apportionment method prescribed by | ||||||
| 6 | such
subsection except for the fact that it derives | ||||||
| 7 | business income solely from
Illinois. As used in this | ||||||
| 8 | paragraph, for taxable years ending before December | ||||||
| 9 | 31, 2017 or ending after December 31, 2018, the phrase | ||||||
| 10 | "United States" means only the 50 states and the | ||||||
| 11 | District of Columbia, but does not include any | ||||||
| 12 | territory or possession of the United States or any | ||||||
| 13 | area over which the United States has asserted | ||||||
| 14 | jurisdiction or claimed exclusive rights with respect | ||||||
| 15 | to the exploration for or exploitation of natural | ||||||
| 16 | resources.
For taxable years ending on or after | ||||||
| 17 | December 31, 2017 and ending on or before December 31, | ||||||
| 18 | 2018, the phrase "United States", as used in this | ||||||
| 19 | paragraph, means only the 50 states, the District of | ||||||
| 20 | Columbia, and any area over which the United States has | ||||||
| 21 | asserted jurisdiction or claimed exclusive rights with | ||||||
| 22 | respect to the exploration for or exploitation of | ||||||
| 23 | natural resources, but does not include any territory | ||||||
| 24 | or possession of the United States. | ||||||
| 25 | (C) Holding companies. | ||||||
| 26 | (i) For purposes of this subparagraph, a | ||||||
| |||||||
| |||||||
| 1 | "holding company" is a corporation (other than a | ||||||
| 2 | corporation that is a financial organization under | ||||||
| 3 | paragraph (8) of this subsection (a) of Section | ||||||
| 4 | 1501 because it is a bank holding company under the | ||||||
| 5 | provisions of the Bank Holding Company Act of 1956 | ||||||
| 6 | (12 U.S.C. 1841, et seq.) or because it is owned by | ||||||
| 7 | a bank or a bank holding company) that owns a | ||||||
| 8 | controlling interest in one or more other | ||||||
| 9 | taxpayers ("controlled taxpayers"); that, during | ||||||
| 10 | the period that includes the taxable year and the 2 | ||||||
| 11 | immediately preceding taxable years or, if the | ||||||
| 12 | corporation was formed during the current or | ||||||
| 13 | immediately preceding taxable year, the taxable | ||||||
| 14 | years in which the corporation has been in | ||||||
| 15 | existence, derived substantially all its gross | ||||||
| 16 | income from dividends, interest, rents, royalties, | ||||||
| 17 | fees or other charges received from controlled | ||||||
| 18 | taxpayers for the provision of services, and gains | ||||||
| 19 | on the sale or other disposition of interests in | ||||||
| 20 | controlled taxpayers or in property leased or | ||||||
| 21 | licensed to controlled taxpayers or used by the | ||||||
| 22 | taxpayer in providing services to controlled | ||||||
| 23 | taxpayers; and that incurs no substantial expenses | ||||||
| 24 | other than expenses (including interest and other | ||||||
| 25 | costs of borrowing) incurred in connection with | ||||||
| 26 | the acquisition and holding of interests in | ||||||
| |||||||
| |||||||
| 1 | controlled taxpayers and in the provision of | ||||||
| 2 | services to controlled taxpayers or in the leasing | ||||||
| 3 | or licensing of property to controlled taxpayers. | ||||||
| 4 | (ii) The income of a holding company which is a | ||||||
| 5 | member of more than one unitary business group | ||||||
| 6 | shall be included in each unitary business group of | ||||||
| 7 | which it is a member on a pro rata basis, by | ||||||
| 8 | including in each unitary business group that | ||||||
| 9 | portion of the base income of the holding company | ||||||
| 10 | that bears the same proportion to the total base | ||||||
| 11 | income of the holding company as the gross receipts | ||||||
| 12 | of the unitary business group bears to the combined | ||||||
| 13 | gross receipts of all unitary business groups (in | ||||||
| 14 | both cases without regard to the holding company) | ||||||
| 15 | or on any other reasonable basis, consistently | ||||||
| 16 | applied. | ||||||
| 17 | (iii) A holding company shall apportion its | ||||||
| 18 | business income under the subsection of Section | ||||||
| 19 | 304 used by the other members of its unitary | ||||||
| 20 | business group. The apportionment factors of a | ||||||
| 21 | holding company which would be a member of more | ||||||
| 22 | than one unitary business group shall be included | ||||||
| 23 | with the apportionment factors of each unitary | ||||||
| 24 | business group of which it is a member on a pro | ||||||
| 25 | rata basis using the same method used in clause | ||||||
| 26 | (ii). | ||||||
| |||||||
| |||||||
| 1 | (iv) The provisions of this subparagraph (C) | ||||||
| 2 | are intended to clarify existing law. | ||||||
| 3 | (D) If including the base income and factors of a | ||||||
| 4 | holding company in more than one unitary business group | ||||||
| 5 | under subparagraph (C) does not fairly reflect the | ||||||
| 6 | degree of integration between the holding company and | ||||||
| 7 | one or more of the unitary business groups, the | ||||||
| 8 | dependence of the holding company and one or more of | ||||||
| 9 | the unitary business groups upon each other, or the | ||||||
| 10 | contributions between the holding company and one or | ||||||
| 11 | more of the unitary business groups, the holding | ||||||
| 12 | company may petition the Director, under the | ||||||
| 13 | procedures provided under Section 304(f), for | ||||||
| 14 | permission to include all base income and factors of | ||||||
| 15 | the holding company only with members of a unitary | ||||||
| 16 | business group apportioning their business income | ||||||
| 17 | under one subsection of subsections (a), (b), (c), or | ||||||
| 18 | (d) of Section 304. If the petition is granted, the | ||||||
| 19 | holding company shall be included in a unitary business | ||||||
| 20 | group only with persons apportioning their business | ||||||
| 21 | income under the selected subsection of Section 304 | ||||||
| 22 | until the Director grants a petition of the holding | ||||||
| 23 | company either to be included in more than one unitary | ||||||
| 24 | business group under subparagraph (C) or to include its | ||||||
| 25 | base income and factors only with members of a unitary | ||||||
| 26 | business group apportioning their business income | ||||||
| |||||||
| |||||||
| 1 | under a different subsection of Section 304. | ||||||
| 2 | (E) If the unitary business group members' | ||||||
| 3 | accounting periods differ,
the common parent's | ||||||
| 4 | accounting period or, if there is no common parent, the
| ||||||
| 5 | accounting period of the member that is expected to | ||||||
| 6 | have, on a recurring basis,
the greatest Illinois | ||||||
| 7 | income tax liability must be used to determine whether | ||||||
| 8 | to
use the apportionment method provided in subsection | ||||||
| 9 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
| 10 | against membership in a unitary business group for | ||||||
| 11 | taxpayers
ordinarily required to apportion income | ||||||
| 12 | under different subsections of Section
304 does not | ||||||
| 13 | apply to taxpayers required to apportion income under | ||||||
| 14 | subsection
(a) and subsection (h) of Section
304. The | ||||||
| 15 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
| 16 | years ending on or after December 31, 1998.
| ||||||
| 17 | (28) Subchapter S corporation. The term "Subchapter S | ||||||
| 18 | corporation"
means a corporation for which there is in | ||||||
| 19 | effect an election under Section
1362 of the Internal | ||||||
| 20 | Revenue Code, or for which there is a federal election
to | ||||||
| 21 | opt out of the provisions of the Subchapter S Revision Act | ||||||
| 22 | of 1982 and
have applied instead the prior federal | ||||||
| 23 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
| 24 | (30) Foreign person. The term "foreign person" means | ||||||
| 25 | any person who is a nonresident alien individual and any | ||||||
| 26 | nonindividual entity, regardless of where created or | ||||||
| |||||||
| |||||||
| 1 | organized, whose business activity outside the United | ||||||
| 2 | States is 80% or more of the entity's total business | ||||||
| 3 | activity.
| ||||||
| 4 | (b) Other definitions.
| ||||||
| 5 | (1) Words denoting number, gender, and so forth,
when | ||||||
| 6 | used in this Act, where not otherwise distinctly expressed | ||||||
| 7 | or manifestly
incompatible with the intent thereof:
| ||||||
| 8 | (A) Words importing the singular include and apply | ||||||
| 9 | to several persons,
parties or things;
| ||||||
| 10 | (B) Words importing the plural include the | ||||||
| 11 | singular; and
| ||||||
| 12 | (C) Words importing the masculine gender include | ||||||
| 13 | the feminine as well.
| ||||||
| 14 | (2) "Company" or "association" as including successors | ||||||
| 15 | and assigns. The
word "company" or "association", when used | ||||||
| 16 | in reference to a corporation,
shall be deemed to embrace | ||||||
| 17 | the words "successors and assigns of such company
or | ||||||
| 18 | association", and in like manner as if these last-named | ||||||
| 19 | words, or words
of similar import, were expressed.
| ||||||
| 20 | (3) Other terms. Any term used in any Section of this | ||||||
| 21 | Act with respect
to the application of, or in connection | ||||||
| 22 | with, the provisions of any other
Section of this Act shall | ||||||
| 23 | have the same meaning as in such other Section.
| ||||||
| 24 | (Source: P.A. 99-213, eff. 7-31-15; 100-22, eff. 7-6-17.)
| ||||||
| |||||||
| |||||||
| 1 | Section 130. The Retailers' Occupation Tax Act is amended | ||||||
| 2 | by changing Sections 5a, 5b, and 5c as follows:
| ||||||
| 3 | (35 ILCS 120/5a) (from Ch. 120, par. 444a)
| ||||||
| 4 | Sec. 5a.
The Department shall have a lien for the tax | ||||||
| 5 | herein imposed or any
portion thereof, or for any penalty | ||||||
| 6 | provided for in this Act, or for any
amount of interest which | ||||||
| 7 | may be due as provided for in Section 5 of this
Act, upon all | ||||||
| 8 | the real and personal property of any person to whom a
final | ||||||
| 9 | assessment or revised final assessment has been issued as | ||||||
| 10 | provided in
this Act, or whenever a return is filed without | ||||||
| 11 | payment of the tax or
penalty shown therein to be due, | ||||||
| 12 | including all such property of such
persons acquired after | ||||||
| 13 | receipt of such assessment or filing of such return.
The | ||||||
| 14 | taxpayer is liable for the filing fee incurred imposed by the | ||||||
| 15 | Department for
filing the lien and the filing fee incurred | ||||||
| 16 | imposed by the Department to
file the release of that the lien. | ||||||
| 17 | The filing fees shall be paid to the Department in
addition to | ||||||
| 18 | payment of the tax, penalty, and interest included in the | ||||||
| 19 | amount of
the lien.
| ||||||
| 20 | However, where the lien arises because of the issuance of a | ||||||
| 21 | final
assessment or revised final assessment by the Department, | ||||||
| 22 | such lien shall
not attach and the notice hereinafter referred | ||||||
| 23 | to in this Section shall not
be filed until all proceedings in | ||||||
| 24 | court for review of such final assessment
or revised final | ||||||
| 25 | assessment have terminated or the time for the taking
thereof | ||||||
| |||||||
| |||||||
| 1 | has expired without such proceedings being instituted.
| ||||||
| 2 | Upon the granting of a rehearing or departmental review | ||||||
| 3 | pursuant to
Section 4 or Section 5 of this Act after a lien has | ||||||
| 4 | attached, such lien
shall remain in full force except to the | ||||||
| 5 | extent to which the final
assessment may be reduced by a | ||||||
| 6 | revised final assessment following such
rehearing or review.
| ||||||
| 7 | The lien created by the issuance of a final assessment | ||||||
| 8 | shall terminate
unless a notice of lien is filed, as provided | ||||||
| 9 | in Section 5b hereof,
within 3 years from the date all | ||||||
| 10 | proceedings in court for the review of
such final assessment | ||||||
| 11 | have terminated or the time for the taking thereof
has expired | ||||||
| 12 | without such proceedings being instituted, or (in the case of a
| ||||||
| 13 | revised final assessment issued pursuant to a rehearing or | ||||||
| 14 | departmental
review) within 3 years from the date all | ||||||
| 15 | proceedings in court for the
review of such revised final | ||||||
| 16 | assessment have terminated or the time for the
taking thereof | ||||||
| 17 | has expired without such proceedings being instituted; and
| ||||||
| 18 | where the lien results from the filing of a return without | ||||||
| 19 | payment of the
tax or penalty shown therein to be due, the lien | ||||||
| 20 | shall terminate unless a
notice of lien is filed, as provided | ||||||
| 21 | in Section 5b hereof, within 3 years
from the date when such | ||||||
| 22 | return is filed with the Department: Provided that
the time | ||||||
| 23 | limitation period on the Department's right to file a notice of
| ||||||
| 24 | lien shall not run (1) during any period of time in which the | ||||||
| 25 | order of any
court has the effect of enjoining or restraining | ||||||
| 26 | the Department from filing
such notice of lien, or (2) during | ||||||
| |||||||
| |||||||
| 1 | the term of a repayment plan that taxpayer has entered into | ||||||
| 2 | with the Department, as long as taxpayer remains in compliance | ||||||
| 3 | with the terms of the repayment plan.
| ||||||
| 4 | If the Department finds that a taxpayer is about to depart | ||||||
| 5 | from the
State, or to conceal himself or his property, or to do | ||||||
| 6 | any other act
tending to prejudice or to render wholly or | ||||||
| 7 | partly ineffectual proceedings
to collect such tax unless such | ||||||
| 8 | proceedings are brought without delay, or
if the Department | ||||||
| 9 | finds that the collection of the amount due from any
taxpayer | ||||||
| 10 | will be jeopardized by delay, the Department shall give the
| ||||||
| 11 | taxpayer notice of such findings and shall make demand for | ||||||
| 12 | immediate return
and payment of such tax, whereupon such tax | ||||||
| 13 | shall become immediately due
and payable. If the taxpayer, | ||||||
| 14 | within 5 days after such notice (or within
such extension of | ||||||
| 15 | time as the Department may grant), does not comply with
such | ||||||
| 16 | notice or show to the Department that the findings in such | ||||||
| 17 | notice are
erroneous, the Department may file a notice of | ||||||
| 18 | jeopardy assessment lien in
the office of the recorder of the | ||||||
| 19 | county in which any property of
the taxpayer may be located | ||||||
| 20 | State Tax Lien Registry and shall notify the taxpayer of such | ||||||
| 21 | filing.
Such jeopardy assessment lien shall have the same scope | ||||||
| 22 | and effect as the
statutory lien hereinbefore provided for in | ||||||
| 23 | this Section.
| ||||||
| 24 | If the taxpayer believes that he does not owe some or all | ||||||
| 25 | of the tax for
which the jeopardy assessment lien against him | ||||||
| 26 | has been filed, or that no
jeopardy to the revenue in fact | ||||||
| |||||||
| |||||||
| 1 | exists, he may protest within 20 days after
being notified by | ||||||
| 2 | the Department of the filing of such jeopardy assessment
lien | ||||||
| 3 | and request a hearing, whereupon the Department shall hold a | ||||||
| 4 | hearing
in conformity with the provisions of this Act and, | ||||||
| 5 | pursuant thereto, shall
notify the taxpayer of its findings as | ||||||
| 6 | to whether or not such jeopardy
assessment lien will be | ||||||
| 7 | released. If not, and if the taxpayer is aggrieved
by this | ||||||
| 8 | decision, he may file an action for judicial review
of such | ||||||
| 9 | final
determination of the Department in accordance with | ||||||
| 10 | Section 12 of this Act
and the Administrative Review Law. | ||||||
| 11 | On and after July 1, 2013, protests concerning matters that | ||||||
| 12 | are subject to the jurisdiction of the Illinois Independent Tax | ||||||
| 13 | Tribunal shall be filed with the Tribunal, and hearings on | ||||||
| 14 | those matters shall be held before the Tribunal in accordance | ||||||
| 15 | with the Illinois Independent Tax Tribunal Act of 2012. The | ||||||
| 16 | Tribunal shall
notify the taxpayer of its findings as to | ||||||
| 17 | whether or not such jeopardy
assessment lien will be released. | ||||||
| 18 | If not, and if the taxpayer is aggrieved
by this decision, he | ||||||
| 19 | may file an action for judicial review
of such final
| ||||||
| 20 | determination of the Department in accordance with Section 12 | ||||||
| 21 | of this Act
and the Illinois Independent Tax Tribunal Act of | ||||||
| 22 | 2012. | ||||||
| 23 | With respect to protests filed with the Department prior to | ||||||
| 24 | July 1, 2013 that would otherwise be subject to the | ||||||
| 25 | jurisdiction of the Illinois Independent Tax Tribunal, the | ||||||
| 26 | taxpayer may elect to be subject to the provisions of the | ||||||
| |||||||
| |||||||
| 1 | Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||||||
| 2 | after July 1, 2013, but not later than 30 days after the date | ||||||
| 3 | on which the protest was filed. If made, the election shall be | ||||||
| 4 | irrevocable.
| ||||||
| 5 | If, pursuant to such hearing (or after an independent | ||||||
| 6 | determination of
the facts by the Department without a | ||||||
| 7 | hearing), the Department or the Tribunal determines
that some | ||||||
| 8 | or all of the tax covered by the jeopardy assessment lien is | ||||||
| 9 | not
owed by the taxpayer, or that no jeopardy to the revenue | ||||||
| 10 | exists, or if on
judicial review the final judgment of the | ||||||
| 11 | court is that the taxpayer does
not owe some or all of the tax | ||||||
| 12 | covered by the jeopardy assessment lien
against him, or that no | ||||||
| 13 | jeopardy to the revenue exists, the Department
shall release | ||||||
| 14 | its jeopardy assessment lien to the extent of such finding of
| ||||||
| 15 | nonliability for the tax, or to the extent of such finding of | ||||||
| 16 | no jeopardy
to the revenue.
| ||||||
| 17 | The Department shall also release its jeopardy assessment | ||||||
| 18 | lien against
the taxpayer whenever the tax and penalty covered | ||||||
| 19 | by such lien, plus any
interest which may be due, are paid
and | ||||||
| 20 | the taxpayer has paid the Department in cash or by guaranteed | ||||||
| 21 | remittance
an amount representing the filing fee for the lien | ||||||
| 22 | and the filing fee for the
release of that lien. The Department | ||||||
| 23 | shall file that release of lien with the
recorder of the county | ||||||
| 24 | where that lien was filed in the State Tax Lien Registry.
| ||||||
| 25 | Nothing in this Section shall be construed to give the | ||||||
| 26 | Department a
preference over the rights of any bona fide | ||||||
| |||||||
| |||||||
| 1 | purchaser, holder of a
security interest, mechanics | ||||||
| 2 | lienholder, mortgagee, or judgment lien
creditor arising prior | ||||||
| 3 | to the filing of a regular
notice of lien or a notice of | ||||||
| 4 | jeopardy assessment lien in the office of the
recorder in the | ||||||
| 5 | county in which the property subject to the lien
is located | ||||||
| 6 | State Tax Lien Registry: Provided, however, that the word "bona | ||||||
| 7 | fide", as used in this
Section shall not include any mortgage | ||||||
| 8 | of real or personal property or any
other credit transaction | ||||||
| 9 | that results in the mortgagee or the holder of the
security | ||||||
| 10 | acting as trustee for unsecured creditors of the taxpayer
| ||||||
| 11 | mentioned in the notice of lien who executed such chattel or | ||||||
| 12 | real property
mortgage or the document evidencing such credit | ||||||
| 13 | transaction. Such lien
shall be inferior to the lien of general | ||||||
| 14 | taxes, special assessments and
special taxes heretofore or | ||||||
| 15 | hereafter levied by any political subdivision
of this State.
| ||||||
| 16 | In case title to land to be affected by the notice of lien | ||||||
| 17 | or notice of
jeopardy assessment lien is registered under the | ||||||
| 18 | provisions of "An Act
concerning land titles", approved May 1, | ||||||
| 19 | 1897, as amended, such notice
shall also be filed in the office | ||||||
| 20 | of the Registrar of Titles of the county
within which the | ||||||
| 21 | property subject to the lien is situated and shall be
entered | ||||||
| 22 | upon the register of titles as a memorial or charge upon each
| ||||||
| 23 | folium of the register of titles affected by such notice State | ||||||
| 24 | Tax Lien Registry, and the
Department shall not have a | ||||||
| 25 | preference over the rights of any bona fide
purchaser, | ||||||
| 26 | mortgagee, judgment creditor or other lien holder arising prior
| ||||||
| |||||||
| |||||||
| 1 | to the registration of such notice: Provided, however, that the | ||||||
| 2 | word "bona
fide" shall not include any mortgage of real or | ||||||
| 3 | personal property or any
other credit transaction that results | ||||||
| 4 | in the mortgagee or the holder of the
security acting as | ||||||
| 5 | trustee for unsecured creditors of the taxpayer
mentioned in | ||||||
| 6 | the notice of lien who executed such chattel or real property
| ||||||
| 7 | mortgage or the document evidencing such credit transaction.
| ||||||
| 8 | Such regular lien or jeopardy assessment lien shall not be | ||||||
| 9 | effective
against any purchaser with respect to any item in a | ||||||
| 10 | retailer's stock in
trade purchased from the retailer in the | ||||||
| 11 | usual course of such retailer's
business.
| ||||||
| 12 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 13 | (35 ILCS 120/5b) (from Ch. 120, par. 444b)
| ||||||
| 14 | Sec. 5b. Notice of lien State Tax Lien Index. The recorder | ||||||
| 15 | of each county shall procure a file labeled
"State Tax Lien | ||||||
| 16 | Notices" and an index book labeled "State Tax Lien Index".
When | ||||||
| 17 | notice of any lien or jeopardy assessment lien is presented to | ||||||
| 18 | him for
filing, he shall file it in numerical order in the file | ||||||
| 19 | and shall enter it
alphabetically in the index. The entry shall | ||||||
| 20 | show the name and last known
business address of the person | ||||||
| 21 | named in the notice, the serial number of
the notice, the date | ||||||
| 22 | and hour of filing, whether it is a regular lien or a
jeopardy | ||||||
| 23 | assessment lien, and the amount of tax and penalty due and | ||||||
| 24 | unpaid,
plus the amount of interest due under Section 5 of this | ||||||
| 25 | Act at the time
when the notice of lien or jeopardy assessment | ||||||
| |||||||
| |||||||
| 1 | lien is filed. | ||||||
| 2 | No recorder or registrar of titles of any county shall | ||||||
| 3 | require that the
Department pay any costs or fees in connection | ||||||
| 4 | with recordation of any
notice or other document filed by the | ||||||
| 5 | Department under this Act at the time
such notice or other | ||||||
| 6 | document is presented for recordation. The recorder or
| ||||||
| 7 | registrar of each county, in order to receive payment for fees | ||||||
| 8 | or costs
incurred by the Department, shall present the | ||||||
| 9 | Department with monthly
statements indicating the amount of | ||||||
| 10 | fees and costs incurred by the
Department and for which no | ||||||
| 11 | payment has been received. The Department of Revenue shall | ||||||
| 12 | maintain a State Tax Lien Index of all tax liens filed in the | ||||||
| 13 | State Tax Lien Registry as provided for by the State Tax Lien | ||||||
| 14 | Registration Act.
| ||||||
| 15 | A notice of lien may be filed after the issuance of a | ||||||
| 16 | revised final
assessment pursuant to a rehearing or | ||||||
| 17 | departmental review under Section 4
or Section 5 of this Act.
| ||||||
| 18 | When the lien obtained pursuant to this Act has been | ||||||
| 19 | satisfied
and the taxpayer has paid the Department in cash or | ||||||
| 20 | by guaranteed remittance
an amount representing the filing fee | ||||||
| 21 | for the lien and the filing fee for the
release of that lien,
| ||||||
| 22 | the Department shall issue a release
of lien and file that | ||||||
| 23 | release of lien with the recorder of the county where
that lien | ||||||
| 24 | was filed in the State Tax Lien Registry. The release of lien | ||||||
| 25 | shall contain in legible letters a
statement as
follows: | ||||||
| 26 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
| |||||||
| |||||||
| 1 | BE FILED WITH THE RECORDER OR THE REGISTRAR
OF TITLES IN | ||||||
| 2 | WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
| ||||||
| 3 | When a certificate of complete or partial release of lien | ||||||
| 4 | issued by the
Department is presented for filing in the office | ||||||
| 5 | of the recorder
or Registrar of Titles where a notice of lien | ||||||
| 6 | or notice of jeopardy
assessment lien was filed, the recorder, | ||||||
| 7 | in the case of nonregistered
property, filed in the State Tax | ||||||
| 8 | Lien Registry, the Department of Revenue shall permanently | ||||||
| 9 | attach the certificate of release to the notice
of lien or | ||||||
| 10 | notice of jeopardy assessment lien and shall enter the
| ||||||
| 11 | certificate of release and the date in the "State Tax Lien | ||||||
| 12 | Index" on the
line where the notice of lien or notice of | ||||||
| 13 | jeopardy assessment lien is
entered.
| ||||||
| 14 | In the case of registered property, the Registrar of Titles | ||||||
| 15 | shall file
and enter upon each folium of the register of titles | ||||||
| 16 | affected thereby a
memorial of the certificate of release which | ||||||
| 17 | memorial when so entered shall
act as a release pro tanto of | ||||||
| 18 | any memorial of such notice of lien or notice
of jeopardy | ||||||
| 19 | assessment lien previously filed and registered. | ||||||
| 20 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 21 | (35 ILCS 120/5c) (from Ch. 120, par. 444c)
| ||||||
| 22 | Sec. 5c.
Upon payment by the taxpayer to the Department in | ||||||
| 23 | cash or by guaranteed
remittance of an amount representing the | ||||||
| 24 | filing fee for the lien and the filing
fee for the release of | ||||||
| 25 | that lien,
the Department shall issue a certificate of complete | ||||||
| |||||||
| |||||||
| 1 | or partial
release of the lien
and file that complete or | ||||||
| 2 | partial release of lien with the recorder of the county where | ||||||
| 3 | the lien was filed in the State Tax Lien Registry:
| ||||||
| 4 | (a) to the extent that the fair market value of any | ||||||
| 5 | property subject to
the lien exceeds the amount of the lien | ||||||
| 6 | plus the amount of all prior liens
upon such property;
| ||||||
| 7 | (b) to the extent that such lien shall become | ||||||
| 8 | unenforceable;
| ||||||
| 9 | (c) to the extent that the amount of such lien is paid | ||||||
| 10 | by the retailer
whose property is subject to such lien, | ||||||
| 11 | together with any interest which
may become due under | ||||||
| 12 | Section 5 of this Act between the date when the notice
of | ||||||
| 13 | lien is filed and the date when the amount of such lien is | ||||||
| 14 | paid;
| ||||||
| 15 | (d) to the extent that there is furnished to the | ||||||
| 16 | Department on a form to
be approved and with a surety or | ||||||
| 17 | sureties satisfactory to the Department a
bond that is | ||||||
| 18 | conditioned upon the payment of the amount of such lien,
| ||||||
| 19 | together with any interest which may become due under | ||||||
| 20 | Section 5 of this
Act after the notice of lien is filed, | ||||||
| 21 | but before the amount thereof is
fully paid;
| ||||||
| 22 | (e) to the extent and under the circumstances specified | ||||||
| 23 | in Section 5a of
this Act in the case of jeopardy | ||||||
| 24 | assessment liens;
| ||||||
| 25 | (f) to the extent to which an assessment is reduced | ||||||
| 26 | pursuant to a
rehearing or departmental review under | ||||||
| |||||||
| |||||||
| 1 | Section 4 or Section 5 of this
Act.
| ||||||
| 2 | A certificate of complete or partial release of any lien | ||||||
| 3 | shall be held
conclusive that the lien upon the property | ||||||
| 4 | covered by the certificate is
extinguished to the extent | ||||||
| 5 | indicated by such certificate.
| ||||||
| 6 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 7 | Section 135. The Cannabis and Controlled Substances Tax Act | ||||||
| 8 | is amended by changing Sections 16, 17, and 19 as follows:
| ||||||
| 9 | (35 ILCS 520/16) (from Ch. 120, par. 2166)
| ||||||
| 10 | Sec. 16. All assessments are jeopardy assessments - lien.
| ||||||
| 11 | (a) Assessment. An assessment for a dealer not possessing | ||||||
| 12 | valid stamps
or other official indicia showing that the tax has | ||||||
| 13 | been paid shall be
considered a jeopardy assessment or | ||||||
| 14 | collection, as provided by Section 1102
of the Illinois Income | ||||||
| 15 | Tax Act. The Department shall determine and assess
a tax and | ||||||
| 16 | applicable penalties and interest according to the best | ||||||
| 17 | judgment
and information available to the Department, which | ||||||
| 18 | amount so fixed by the
Department shall be prima facie correct | ||||||
| 19 | and shall be prima facie evidence
of the correctness of the | ||||||
| 20 | amount of tax due, as shown in such determination.
When, | ||||||
| 21 | according to the best judgment and information available to the
| ||||||
| 22 | Department with regard to all real and personal property and | ||||||
| 23 | rights to property
of the dealer, there is no reasonable | ||||||
| 24 | expectation of collection of the amount
of tax and penalty to | ||||||
| |||||||
| |||||||
| 1 | be assessed, the Department may issue an assessment under
this | ||||||
| 2 | Section for the amount of tax without penalty.
| ||||||
| 3 | (b) Filing of lien. Upon issuance of a jeopardy assessment | ||||||
| 4 | as
provided by subsection (a) of this Section, the Department | ||||||
| 5 | may file a
notice of jeopardy assessment lien in the office of | ||||||
| 6 | the recorder of the
county in which any property of the | ||||||
| 7 | taxpayer may be located State Tax Lien Registry and shall
| ||||||
| 8 | notify the taxpayer of such filing.
| ||||||
| 9 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
| 10 | some or all
of the amount for which the jeopardy assessment | ||||||
| 11 | lien against him has been
filed, he may protest within 20 days | ||||||
| 12 | after being notified by the
Department of the filing of such | ||||||
| 13 | jeopardy assessment lien and request a
hearing, whereupon the | ||||||
| 14 | Department shall hold a hearing in conformity with
the | ||||||
| 15 | provisions of Section 908 of the Illinois Income Tax Act and, | ||||||
| 16 | pursuant
thereto, shall notify the taxpayer of its decision as | ||||||
| 17 | to whether or not such
jeopardy assessment lien will be | ||||||
| 18 | released.
| ||||||
| 19 | After the expiration of the period within which the person | ||||||
| 20 | assessed may
file an action for judicial review
without such | ||||||
| 21 | action being filed, a certified copy of the final assessment
or | ||||||
| 22 | revised final assessment of the Department may be filed with | ||||||
| 23 | the Circuit
Court of the county in which the dealer resides, or | ||||||
| 24 | of Cook County in the
case of a dealer who does not reside in | ||||||
| 25 | this State, or in the county where
the violation of this Act | ||||||
| 26 | took place.
The certified copy of the final assessment or | ||||||
| |||||||
| |||||||
| 1 | revised final assessment
shall be accompanied by a | ||||||
| 2 | certification which recites facts that are
sufficient to show | ||||||
| 3 | that the Department complied with the jurisdictional
| ||||||
| 4 | requirements of the Act in arriving at its final assessment or | ||||||
| 5 | its revised
final assessment and that the dealer had this | ||||||
| 6 | opportunity for an
administrative hearing and for judicial | ||||||
| 7 | review, whether he availed himself
or herself of either or both | ||||||
| 8 | of these opportunities or not. If the court
is satisfied that | ||||||
| 9 | the Department complied with the
jurisdictional requirements | ||||||
| 10 | of the Act in arriving at its final assessment or
its revised | ||||||
| 11 | final assessment and that the taxpayer had his opportunity for
| ||||||
| 12 | an administrative hearing and for judicial review, whether he | ||||||
| 13 | availed
himself of either or both of these opportunities or | ||||||
| 14 | not, the court shall
render judgment in favor of the Department | ||||||
| 15 | and against the taxpayer for
the amount shown to be due by the | ||||||
| 16 | final assessment or the revised final
assessment, plus any | ||||||
| 17 | interest which may be due, and such judgment shall be
entered | ||||||
| 18 | in the judgment docket of the court. Such judgment shall bear | ||||||
| 19 | the
same rate of interest and shall have the same effect as | ||||||
| 20 | other judgments.
The judgment may be enforced, and all laws | ||||||
| 21 | applicable to sales for the
enforcement of a judgment shall be | ||||||
| 22 | applicable to sales made under such
judgments. The Department | ||||||
| 23 | shall file the certified copy of its assessment,
as herein | ||||||
| 24 | provided, with the Circuit Court within 2 years after such
| ||||||
| 25 | assessment becomes final except when the taxpayer consents in | ||||||
| 26 | writing to an
extension of such filing period, and except that | ||||||
| |||||||
| |||||||
| 1 | the time limitation period
on the Department's right to file | ||||||
| 2 | the certified copy of its assessment with
the Circuit Court | ||||||
| 3 | shall not run during any period of time in which the
order of | ||||||
| 4 | any court has the effect of enjoining or restraining the
| ||||||
| 5 | Department from filing such certified copy of its assessment | ||||||
| 6 | with the
Circuit Court.
| ||||||
| 7 | If, when the cause of action for a proceeding in court | ||||||
| 8 | accrues against a
person, he or she is out of the State, the | ||||||
| 9 | action may be commenced within
the times herein limited, after | ||||||
| 10 | his or her coming into or returning to the
State; and if, after | ||||||
| 11 | the cause of action accrues, he or she departs from
and remains | ||||||
| 12 | out of the State, the time of his or her absence from the
| ||||||
| 13 | State, the time of his or her absence is no part of the time | ||||||
| 14 | limited for
the commencement of the action; but the foregoing | ||||||
| 15 | provisions concerning
absence from the State shall not apply to | ||||||
| 16 | any case in which, at the time
the cause of action accrues, the | ||||||
| 17 | party against whom the cause of action
accrues is not a | ||||||
| 18 | resident of this State. The time within which a court
action is | ||||||
| 19 | to be commenced by the Department hereunder shall
not run from | ||||||
| 20 | the
date the taxpayer files a petition in bankruptcy under the | ||||||
| 21 | Federal
Bankruptcy Act until 30 days after notice of | ||||||
| 22 | termination or expiration of
the automatic stay imposed by the | ||||||
| 23 | Federal Bankruptcy Act.
| ||||||
| 24 | No claim shall be filed against the estate of any deceased | ||||||
| 25 | person or any
person under legal disability for any tax or | ||||||
| 26 | penalty or part of either, or
interest, except in the manner | ||||||
| |||||||
| |||||||
| 1 | prescribed and within the time limited by the
Probate Act of | ||||||
| 2 | 1975, as amended.
| ||||||
| 3 | The collection of tax or penalty or interest by any means | ||||||
| 4 | provided for
herein shall not be a bar to any prosecution under | ||||||
| 5 | this Act.
| ||||||
| 6 | In addition to any penalty provided for in this Act, any | ||||||
| 7 | amount of tax
which is not paid when due shall bear interest at | ||||||
| 8 | the rate determined in
accordance with the Uniform Penalty and | ||||||
| 9 | Interest Act, per month or fraction
thereof from the date when | ||||||
| 10 | such tax becomes past due until such tax is paid
or a judgment | ||||||
| 11 | therefor is obtained by the Department. If the time for
making | ||||||
| 12 | or completing an audit of a taxpayer's books and records is | ||||||
| 13 | extended
with the taxpayer's consent, at the request of and for | ||||||
| 14 | the convenience of
the Department, beyond the date on which the | ||||||
| 15 | statute of limitations upon
the issuance of a notice of tax | ||||||
| 16 | liability by the Department otherwise run,
no interest shall | ||||||
| 17 | accrue during the period of such extension. Interest
shall be | ||||||
| 18 | collected in the same manner and as part of the tax.
| ||||||
| 19 | If the Department determines that an amount of tax or | ||||||
| 20 | penalty or interest
was incorrectly assessed, whether as the | ||||||
| 21 | result of a mistake of fact or an
error of law, the Department | ||||||
| 22 | shall waive the amount of tax or penalty or
interest that | ||||||
| 23 | accrued due to the incorrect assessment.
| ||||||
| 24 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 25 | (35 ILCS 520/17) (from Ch. 120, par. 2167)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 17. Filing and priority of liens. | ||||||
| 2 | (a) Filing with Recorder in the State Tax Lien Registry. | ||||||
| 3 | Nothing in this Act shall be construed
to give the Department a | ||||||
| 4 | preference over the rights of any bona fide
purchaser, holder | ||||||
| 5 | of a security interest, mechanics lienholder,
mortgagee, or | ||||||
| 6 | judgment lien creditor arising prior
to the filing of a regular | ||||||
| 7 | notice of lien or a notice of jeopardy
assessment lien in the | ||||||
| 8 | office of the recorder in the county in
which the property | ||||||
| 9 | subject to the lien is located State Tax Lien Registry. For | ||||||
| 10 | purposes of this
section, the term "bona fide," shall not | ||||||
| 11 | include any mortgage of real or
personal property or any other | ||||||
| 12 | credit transaction that results in the
mortgagee or the holder | ||||||
| 13 | of the security acting as trustee for unsecured
creditors of | ||||||
| 14 | the taxpayer mentioned in the notice of lien who executed such
| ||||||
| 15 | chattel or real property mortgage or the document evidencing | ||||||
| 16 | such credit
transaction. Such lien shall be inferior to the | ||||||
| 17 | lien of general taxes,
special assessments and special taxes | ||||||
| 18 | heretofore or hereafter levied by any
political subdivision of | ||||||
| 19 | this State.
| ||||||
| 20 | (b) Filing with Registrar. In case title to land to be | ||||||
| 21 | affected by
the notice of lien or notice of jeopardy assessment | ||||||
| 22 | lien is registered
under the provisions of "An Act concerning | ||||||
| 23 | land titles," approved May 1,
1897, as amended, such notice | ||||||
| 24 | shall also be filed in the office of the
Registrar of Titles of | ||||||
| 25 | the county within which the property subject to the
lien is | ||||||
| 26 | situated and shall be entered upon the register of titles as a
| ||||||
| |||||||
| |||||||
| 1 | memorial of charge upon each folium of the register of titles | ||||||
| 2 | affected by
such notice State Tax Lien Registry, and the | ||||||
| 3 | Department shall not have a preference over the rights
of any | ||||||
| 4 | bona fide purchaser, mortgagee, judgment creditor or other lien
| ||||||
| 5 | holder arising prior to the registration of such notice.
| ||||||
| 6 | (c) No recorder or registrar of titles of any county shall | ||||||
| 7 | require
that the Department pay any costs or fees in connection | ||||||
| 8 | with recordation of
any notice or other document filed by the | ||||||
| 9 | Department under this Act at the
time such notice or other | ||||||
| 10 | document is presented for recordation. (Blank).
| ||||||
| 11 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 12 | (35 ILCS 520/19) (from Ch. 120, par. 2169)
| ||||||
| 13 | Sec. 19. Release of liens.
| ||||||
| 14 | (a) In general. The Department shall release all or any | ||||||
| 15 | portion of
the property subject to any lien provided for in | ||||||
| 16 | this Act if it determines
that the release will not endanger or | ||||||
| 17 | jeopardize the collection of the
amount secured thereby.
The | ||||||
| 18 | Department shall release its lien on property which is the | ||||||
| 19 | subject of
forfeiture proceedings under the Narcotics Profit | ||||||
| 20 | Forfeiture Act, the Criminal
Code of 2012, or the Drug Asset | ||||||
| 21 | Forfeiture Procedure Act until all forfeiture
proceedings are | ||||||
| 22 | concluded. Property forfeited shall not be subject to
a lien | ||||||
| 23 | under this Act.
| ||||||
| 24 | (b) Judicial determination. If on judicial review the final | ||||||
| 25 | judgment
of the court is that the taxpayer does not owe some or | ||||||
| |||||||
| |||||||
| 1 | all of the amount
secured by the lien against him, or that no | ||||||
| 2 | jeopardy to the revenue exists,
the Department shall release | ||||||
| 3 | its lien to the extent of such finding of
nonliability, or to | ||||||
| 4 | the extent of such finding of no jeopardy to the
revenue.
| ||||||
| 5 | (c) Payment. The Department shall also release its jeopardy
| ||||||
| 6 | assessment lien against the taxpayer whenever the tax and | ||||||
| 7 | penalty covered
by such lien, plus any interest which may be | ||||||
| 8 | due, are paid.
| ||||||
| 9 | (d) Certificate of release. The Department shall issue a | ||||||
| 10 | certificate
of complete or partial release of the lien:
| ||||||
| 11 | (1) To the extent that the fair market value of any | ||||||
| 12 | property subject to
the lien exceeds the amount of the lien | ||||||
| 13 | plus the amount of all prior liens
upon such property;
| ||||||
| 14 | (2) To the extent that such lien shall become | ||||||
| 15 | unenforceable;
| ||||||
| 16 | (3) To the extent that the amount of such lien is paid | ||||||
| 17 | by the person
whose property is subject to such lien, | ||||||
| 18 | together with any interest and penalty
which
may become due | ||||||
| 19 | under this Act between the date when the notice of lien is
| ||||||
| 20 | filed and the date when the amount of such lien is paid;
| ||||||
| 21 | (4) To the extent and under the circumstances specified | ||||||
| 22 | in this Section.
A certificate of complete or partial | ||||||
| 23 | release of any lien shall be held
conclusive that the lien | ||||||
| 24 | upon the property covered by the certificate is
| ||||||
| 25 | extinguished to the extent indicated by such certificate.
| ||||||
| 26 | Such release of lien shall be issued to the person, or his | ||||||
| |||||||
| |||||||
| 1 | agent, against
whom the lien was obtained and shall contain in | ||||||
| 2 | legible letters a statement as
follows: | ||||||
| 3 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
| 4 | BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN | ||||||
| 5 | WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
| ||||||
| 6 | (e) Filing. When a certificate of complete or partial | ||||||
| 7 | release of lien
issued by the Department is presented for | ||||||
| 8 | filing in the office of the
recorder or Registrar of Titles | ||||||
| 9 | where a notice of lien or notice
of jeopardy assessment lien | ||||||
| 10 | was filed: filed in the State Tax Lien Registry, the Department
| ||||||
| 11 | (1) The recorder, in the case of nonregistered | ||||||
| 12 | property, shall
permanently attach the certificate of | ||||||
| 13 | release to the notice of lien or
notice of jeopardy | ||||||
| 14 | assessment lien and shall enter the certificate of
release | ||||||
| 15 | and the date in the "State Tax Lien Index" on the line | ||||||
| 16 | where the
notice of lien or notice of jeopardy assessment | ||||||
| 17 | lien is entered; and .
| ||||||
| 18 | (2) In the case of registered property, the Registrar | ||||||
| 19 | of Titles shall
file and enter upon each folium of the | ||||||
| 20 | register of titles affected thereby
a memorial of the | ||||||
| 21 | certificate of release which memorial when so entered
shall | ||||||
| 22 | act as a release pro tanto of any memorial of such notice | ||||||
| 23 | of lien or
notice of jeopardy assessment lien previously | ||||||
| 24 | filed and registered. | ||||||
| 25 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | Section 140. The Illinois Municipal Code is amended by | ||||||
| 2 | changing Section 8-3-15 as follows:
| ||||||
| 3 | (65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)
| ||||||
| 4 | Sec. 8-3-15.
The corporate authorities of each | ||||||
| 5 | municipality shall have
all powers necessary to enforce the | ||||||
| 6 | collection of any tax imposed and collected
by such | ||||||
| 7 | municipality, whether such tax was imposed pursuant to its home
| ||||||
| 8 | rule powers or statutory authorization, including but not | ||||||
| 9 | limited to subpoena
power and the power to create and enforce | ||||||
| 10 | liens. No such lien shall affect
the rights of bona fide | ||||||
| 11 | purchasers, mortgagees, judgment creditors or other
| ||||||
| 12 | lienholders who acquire their interests in such property prior | ||||||
| 13 | to the time
a notice of such lien is placed on record in the | ||||||
| 14 | office of the recorder or
the registrar of titles of the county | ||||||
| 15 | in which the property is located.
However, nothing in this | ||||||
| 16 | Section shall permit a municipality to place a
lien upon | ||||||
| 17 | property not located or found within its corporate boundaries. | ||||||
| 18 | A
municipality creating a lien may provide that the procedures | ||||||
| 19 | for its notice
and enforcement shall be the same as that | ||||||
| 20 | provided in the Retailers'
Occupation Tax Act, as now or | ||||||
| 21 | hereafter amended that Act existed prior to the adoption of the | ||||||
| 22 | State Tax Lien Registration Act, for State tax liens, and
any | ||||||
| 23 | recorder or registrar of titles with whom a notice of such lien | ||||||
| 24 | is
filed shall treat such lien as a State tax lien for | ||||||
| 25 | recording purposes.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 2 | Section 145. The Title Insurance Act is amended by changing | ||||||
| 3 | Section 22 as follows:
| ||||||
| 4 | (215 ILCS 155/22) (from Ch. 73, par. 1422)
| ||||||
| 5 | Sec. 22. Tax indemnity; notice.
A corporation authorized to | ||||||
| 6 | do business under this Act
shall notify the Director of Revenue | ||||||
| 7 | of the State
of Illinois, by notice directed to his office in | ||||||
| 8 | the City of Chicago, of
each trust account or similar account | ||||||
| 9 | established which relates to title
exceptions due to a judgment | ||||||
| 10 | lien or any other lien arising
under any tax Act administered | ||||||
| 11 | by the Illinois Department of Revenue, when
notice of such lien | ||||||
| 12 | has been filed with the registrar of titles or
recorder or in | ||||||
| 13 | the State Tax Lien Registry, as the case may be, in the manner | ||||||
| 14 | prescribed by law.
Such notice shall contain the name, address, | ||||||
| 15 | and tax
identification number of the debtor, the permanent real
| ||||||
| 16 | estate index numbers, if any, and the address and
legal | ||||||
| 17 | description of the property, the type of lien claimed by the
| ||||||
| 18 | Department and identification of any trust fund or similar | ||||||
| 19 | account held by
such corporation or any agent thereof relating | ||||||
| 20 | to such lien. Any trust
fund or similar account established by | ||||||
| 21 | such corporation or agent relating
to any such lien shall | ||||||
| 22 | include provisions requiring such corporation or
agent to apply | ||||||
| 23 | such fund in satisfaction or release of such lien upon
written | ||||||
| 24 | demand therefor by the Department of Revenue.
| ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-22, eff. 1-1-18.)
| ||||||
| 2 | Section 150. The Use Tax Act is amended by changing | ||||||
| 3 | Sections 3-5 and 3-50 as follows:
| ||||||
| 4 | (35 ILCS 105/3-5)
| ||||||
| 5 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
| 6 | personal property is exempt from the tax imposed by this Act:
| ||||||
| 7 | (1) Personal property purchased from a corporation, | ||||||
| 8 | society, association,
foundation, institution, or | ||||||
| 9 | organization, other than a limited liability
company, that is | ||||||
| 10 | organized and operated as a not-for-profit service enterprise
| ||||||
| 11 | for the benefit of persons 65 years of age or older if the | ||||||
| 12 | personal property was not purchased by the enterprise for the | ||||||
| 13 | purpose of resale by the
enterprise.
| ||||||
| 14 | (2) Personal property purchased by a not-for-profit | ||||||
| 15 | Illinois county
fair association for use in conducting, | ||||||
| 16 | operating, or promoting the
county fair.
| ||||||
| 17 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
| 18 | cultural organization that establishes, by proof required by | ||||||
| 19 | the
Department by
rule, that it has received an exemption under | ||||||
| 20 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
| 21 | organized and operated primarily for the
presentation
or | ||||||
| 22 | support of arts or cultural programming, activities, or | ||||||
| 23 | services. These
organizations include, but are not limited to, | ||||||
| 24 | music and dramatic arts
organizations such as symphony | ||||||
| |||||||
| |||||||
| 1 | orchestras and theatrical groups, arts and
cultural service | ||||||
| 2 | organizations, local arts councils, visual arts organizations,
| ||||||
| 3 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
| 4 | effective date of Public Act 92-35), however, an entity | ||||||
| 5 | otherwise eligible for this exemption shall not
make tax-free | ||||||
| 6 | purchases unless it has an active identification number issued | ||||||
| 7 | by
the Department.
| ||||||
| 8 | (4) Personal property purchased by a governmental body, by | ||||||
| 9 | a
corporation, society, association, foundation, or | ||||||
| 10 | institution organized and
operated exclusively for charitable, | ||||||
| 11 | religious, or educational purposes, or
by a not-for-profit | ||||||
| 12 | corporation, society, association, foundation,
institution, or | ||||||
| 13 | organization that has no compensated officers or employees
and | ||||||
| 14 | that is organized and operated primarily for the recreation of | ||||||
| 15 | persons
55 years of age or older. A limited liability company | ||||||
| 16 | may qualify for the
exemption under this paragraph only if the | ||||||
| 17 | limited liability company is
organized and operated | ||||||
| 18 | exclusively for educational purposes. On and after July
1, | ||||||
| 19 | 1987, however, no entity otherwise eligible for this exemption | ||||||
| 20 | shall make
tax-free purchases unless it has an active exemption | ||||||
| 21 | identification number
issued by the Department.
| ||||||
| 22 | (5) Until July 1, 2003, a passenger car that is a | ||||||
| 23 | replacement vehicle to
the extent that the
purchase price of | ||||||
| 24 | the car is subject to the Replacement Vehicle Tax.
| ||||||
| 25 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
| 26 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| |||||||
| |||||||
| 1 | equipment, including
repair and replacement
parts, both new and | ||||||
| 2 | used, and including that manufactured on special order,
| ||||||
| 3 | certified by the purchaser to be used primarily for graphic | ||||||
| 4 | arts production,
and including machinery and equipment | ||||||
| 5 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
| 6 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
| 7 | acting as catalysts effect a direct and immediate change
upon a | ||||||
| 8 | graphic arts product. Beginning on July 1, 2017 and until July | ||||||
| 9 | 1, 2019, graphic arts machinery and equipment is included in | ||||||
| 10 | the manufacturing and assembling machinery and equipment | ||||||
| 11 | exemption under paragraph (18).
| ||||||
| 12 | (7) Farm chemicals.
| ||||||
| 13 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
| 14 | coinage issued by
the State of Illinois, the government of the | ||||||
| 15 | United States of America, or the
government of any foreign | ||||||
| 16 | country, and bullion.
| ||||||
| 17 | (9) Personal property purchased from a teacher-sponsored | ||||||
| 18 | student
organization affiliated with an elementary or | ||||||
| 19 | secondary school located in
Illinois.
| ||||||
| 20 | (10) A motor vehicle that is used for automobile renting, | ||||||
| 21 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
| 22 | Act.
| ||||||
| 23 | (11) Farm machinery and equipment, both new and used,
| ||||||
| 24 | including that manufactured on special order, certified by the | ||||||
| 25 | purchaser
to be used primarily for production agriculture or | ||||||
| 26 | State or federal
agricultural programs, including individual | ||||||
| |||||||
| |||||||
| 1 | replacement parts for
the machinery and equipment, including | ||||||
| 2 | machinery and equipment
purchased
for lease,
and including | ||||||
| 3 | implements of husbandry defined in Section 1-130 of
the | ||||||
| 4 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 5 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
| 6 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
| 7 | but excluding other motor
vehicles required to be
registered | ||||||
| 8 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
| 9 | hoop houses used for propagating, growing, or
overwintering | ||||||
| 10 | plants shall be considered farm machinery and equipment under
| ||||||
| 11 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
| 12 | boxes shall include units sold
separately from a motor vehicle | ||||||
| 13 | required to be licensed and units sold mounted
on a motor | ||||||
| 14 | vehicle required to be licensed if the selling price of the | ||||||
| 15 | tender
is separately stated.
| ||||||
| 16 | Farm machinery and equipment shall include precision | ||||||
| 17 | farming equipment
that is
installed or purchased to be | ||||||
| 18 | installed on farm machinery and equipment
including, but not | ||||||
| 19 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
| 20 | or spreaders.
Precision farming equipment includes, but is not | ||||||
| 21 | limited to, soil testing
sensors, computers, monitors, | ||||||
| 22 | software, global positioning
and mapping systems, and other | ||||||
| 23 | such equipment.
| ||||||
| 24 | Farm machinery and equipment also includes computers, | ||||||
| 25 | sensors, software, and
related equipment used primarily in the
| ||||||
| 26 | computer-assisted operation of production agriculture | ||||||
| |||||||
| |||||||
| 1 | facilities, equipment,
and
activities such as, but not limited | ||||||
| 2 | to,
the collection, monitoring, and correlation of
animal and | ||||||
| 3 | crop data for the purpose of
formulating animal diets and | ||||||
| 4 | agricultural chemicals. This item (11) is exempt
from the | ||||||
| 5 | provisions of
Section 3-90.
| ||||||
| 6 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
| 7 | to or used by an air common
carrier, certified by the carrier | ||||||
| 8 | to be used for consumption, shipment, or
storage in the conduct | ||||||
| 9 | of its business as an air common carrier, for a
flight destined | ||||||
| 10 | for or returning from a location or locations
outside the | ||||||
| 11 | United States without regard to previous or subsequent domestic
| ||||||
| 12 | stopovers.
| ||||||
| 13 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
| 14 | or used by an air carrier, certified by the carrier to be used | ||||||
| 15 | for consumption, shipment, or storage in the conduct of its | ||||||
| 16 | business as an air common carrier, for a flight that (i) is | ||||||
| 17 | engaged in foreign trade or is engaged in trade between the | ||||||
| 18 | United States and any of its possessions and (ii) transports at | ||||||
| 19 | least one individual or package for hire from the city of | ||||||
| 20 | origination to the city of final destination on the same | ||||||
| 21 | aircraft, without regard to a change in the flight number of | ||||||
| 22 | that aircraft. | ||||||
| 23 | (13) Proceeds of mandatory service charges separately
| ||||||
| 24 | stated on customers' bills for the purchase and consumption of | ||||||
| 25 | food and
beverages purchased at retail from a retailer, to the | ||||||
| 26 | extent that the proceeds
of the service charge are in fact | ||||||
| |||||||
| |||||||
| 1 | turned over as tips or as a substitute
for tips to the | ||||||
| 2 | employees who participate directly in preparing, serving,
| ||||||
| 3 | hosting or cleaning up the food or beverage function with | ||||||
| 4 | respect to which
the service charge is imposed.
| ||||||
| 5 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
| 6 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
| 7 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
| 8 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
| 9 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
| 10 | individual replacement part for oil
field exploration, | ||||||
| 11 | drilling, and production equipment, and (vi) machinery and
| ||||||
| 12 | equipment purchased
for lease; but excluding motor vehicles | ||||||
| 13 | required to be registered under the
Illinois Vehicle Code.
| ||||||
| 14 | (15) Photoprocessing machinery and equipment, including | ||||||
| 15 | repair and
replacement parts, both new and used, including that
| ||||||
| 16 | manufactured on special order, certified by the purchaser to be | ||||||
| 17 | used
primarily for photoprocessing, and including
| ||||||
| 18 | photoprocessing machinery and equipment purchased for lease.
| ||||||
| 19 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
| 20 | mining, off-highway hauling,
processing, maintenance, and | ||||||
| 21 | reclamation equipment,
including replacement parts and | ||||||
| 22 | equipment, and
including equipment purchased for lease, but | ||||||
| 23 | excluding motor
vehicles required to be registered under the | ||||||
| 24 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 25 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 26 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| |||||||
| |||||||
| 1 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
| 2 | during the period beginning July 1, 2003 and ending on August | ||||||
| 3 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
| 4 | (17) Until July 1, 2003, distillation machinery and | ||||||
| 5 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
| 6 | retailer, certified by the user to be used
only for the | ||||||
| 7 | production of ethyl alcohol that will be used for consumption
| ||||||
| 8 | as motor fuel or as a component of motor fuel for the personal | ||||||
| 9 | use of the
user, and not subject to sale or resale.
| ||||||
| 10 | (18) Manufacturing and assembling machinery and equipment | ||||||
| 11 | used
primarily in the process of manufacturing or assembling | ||||||
| 12 | tangible
personal property for wholesale or retail sale or | ||||||
| 13 | lease, whether that sale
or lease is made directly by the | ||||||
| 14 | manufacturer or by some other person,
whether the materials | ||||||
| 15 | used in the process are
owned by the manufacturer or some other | ||||||
| 16 | person, or whether that sale or
lease is made apart from or as | ||||||
| 17 | an incident to the seller's engaging in
the service occupation | ||||||
| 18 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
| 19 | other similar items of no commercial value on
special order for | ||||||
| 20 | a particular purchaser. The exemption provided by this | ||||||
| 21 | paragraph (18) does not include machinery and equipment used in | ||||||
| 22 | (i) the generation of electricity for wholesale or retail sale; | ||||||
| 23 | (ii) the generation or treatment of natural or artificial gas | ||||||
| 24 | for wholesale or retail sale that is delivered to customers | ||||||
| 25 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
| 26 | water for wholesale or retail sale that is delivered to | ||||||
| |||||||
| |||||||
| 1 | customers through pipes, pipelines, or mains. The provisions of | ||||||
| 2 | Public Act 98-583 are declaratory of existing law as to the | ||||||
| 3 | meaning and scope of this exemption. Beginning on July 1, 2017 | ||||||
| 4 | and until July 1, 2019, the exemption provided by this | ||||||
| 5 | paragraph (18) includes, but is not limited to, graphic arts | ||||||
| 6 | machinery and equipment, as defined in paragraph (6) of this | ||||||
| 7 | Section.
| ||||||
| 8 | (19) Personal property delivered to a purchaser or | ||||||
| 9 | purchaser's donee
inside Illinois when the purchase order for | ||||||
| 10 | that personal property was
received by a florist located | ||||||
| 11 | outside Illinois who has a florist located
inside Illinois | ||||||
| 12 | deliver the personal property.
| ||||||
| 13 | (20) Semen used for artificial insemination of livestock | ||||||
| 14 | for direct
agricultural production.
| ||||||
| 15 | (21) Horses, or interests in horses, registered with and | ||||||
| 16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
| 17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
| 18 | Horse Association, United States
Trotting Association, or | ||||||
| 19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
| 20 | racing for prizes. This item (21) is exempt from the provisions | ||||||
| 21 | of Section 3-90, and the exemption provided for under this item | ||||||
| 22 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
| 23 | claim for credit or refund is allowed on or after January 1, | ||||||
| 24 | 2008
for such taxes paid during the period beginning May 30, | ||||||
| 25 | 2000 and ending on January 1, 2008.
| ||||||
| 26 | (22) Computers and communications equipment utilized for | ||||||
| |||||||
| |||||||
| 1 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
| 2 | analysis, or treatment of hospital patients purchased by a | ||||||
| 3 | lessor who leases
the
equipment, under a lease of one year or | ||||||
| 4 | longer executed or in effect at the
time the lessor would | ||||||
| 5 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
| 6 | hospital
that has been issued an active tax exemption | ||||||
| 7 | identification number by
the
Department under Section 1g of the | ||||||
| 8 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
| 9 | manner that does not qualify for
this exemption or is used in | ||||||
| 10 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
| 11 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
| 12 | case may
be, based on the fair market value of the property at | ||||||
| 13 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
| 14 | or attempt to collect an
amount (however
designated) that | ||||||
| 15 | purports to reimburse that lessor for the tax imposed by this
| ||||||
| 16 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
| 17 | has not been
paid by the lessor. If a lessor improperly | ||||||
| 18 | collects any such amount from the
lessee, the lessee shall have | ||||||
| 19 | a legal right to claim a refund of that amount
from the lessor. | ||||||
| 20 | If, however, that amount is not refunded to the lessee for
any | ||||||
| 21 | reason, the lessor is liable to pay that amount to the | ||||||
| 22 | Department.
| ||||||
| 23 | (23) Personal property purchased by a lessor who leases the
| ||||||
| 24 | property, under
a
lease of
one year or longer executed or in | ||||||
| 25 | effect at the time
the lessor would otherwise be subject to the | ||||||
| 26 | tax imposed by this Act,
to a governmental body
that has been | ||||||
| |||||||
| |||||||
| 1 | issued an active sales tax exemption identification number by | ||||||
| 2 | the
Department under Section 1g of the Retailers' Occupation | ||||||
| 3 | Tax Act.
If the
property is leased in a manner that does not | ||||||
| 4 | qualify for
this exemption
or used in any other non-exempt | ||||||
| 5 | manner, the lessor shall be liable for the
tax imposed under | ||||||
| 6 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
| 7 | on the fair market value of the property at the time the
| ||||||
| 8 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
| 9 | to collect an
amount (however
designated) that purports to | ||||||
| 10 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
| 11 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
| 12 | paid by the lessor. If a lessor improperly collects any such | ||||||
| 13 | amount from the
lessee, the lessee shall have a legal right to | ||||||
| 14 | claim a refund of that amount
from the lessor. If, however, | ||||||
| 15 | that amount is not refunded to the lessee for
any reason, the | ||||||
| 16 | lessor is liable to pay that amount to the Department.
| ||||||
| 17 | (24) Beginning with taxable years ending on or after | ||||||
| 18 | December
31, 1995
and
ending with taxable years ending on or | ||||||
| 19 | before December 31, 2004,
personal property that is
donated for | ||||||
| 20 | disaster relief to be used in a State or federally declared
| ||||||
| 21 | disaster area in Illinois or bordering Illinois by a | ||||||
| 22 | manufacturer or retailer
that is registered in this State to a | ||||||
| 23 | corporation, society, association,
foundation, or institution | ||||||
| 24 | that has been issued a sales tax exemption
identification | ||||||
| 25 | number by the Department that assists victims of the disaster
| ||||||
| 26 | who reside within the declared disaster area.
| ||||||
| |||||||
| |||||||
| 1 | (25) Beginning with taxable years ending on or after | ||||||
| 2 | December
31, 1995 and
ending with taxable years ending on or | ||||||
| 3 | before December 31, 2004, personal
property that is used in the | ||||||
| 4 | performance of infrastructure repairs in this
State, including | ||||||
| 5 | but not limited to municipal roads and streets, access roads,
| ||||||
| 6 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
| 7 | line extensions,
water distribution and purification | ||||||
| 8 | facilities, storm water drainage and
retention facilities, and | ||||||
| 9 | sewage treatment facilities, resulting from a State
or | ||||||
| 10 | federally declared disaster in Illinois or bordering Illinois | ||||||
| 11 | when such
repairs are initiated on facilities located in the | ||||||
| 12 | declared disaster area
within 6 months after the disaster.
| ||||||
| 13 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
| 14 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
| 15 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
| 16 | provisions
of
Section 3-90.
| ||||||
| 17 | (27) A motor vehicle, as that term is defined in Section | ||||||
| 18 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
| 19 | corporation, limited liability company,
society, association, | ||||||
| 20 | foundation, or institution that is determined by the
Department | ||||||
| 21 | to be organized and operated exclusively for educational | ||||||
| 22 | purposes.
For purposes of this exemption, "a corporation, | ||||||
| 23 | limited liability company,
society, association, foundation, | ||||||
| 24 | or institution organized and operated
exclusively for | ||||||
| 25 | educational purposes" means all tax-supported public schools,
| ||||||
| 26 | private schools that offer systematic instruction in useful | ||||||
| |||||||
| |||||||
| 1 | branches of
learning by methods common to public schools and | ||||||
| 2 | that compare favorably in
their scope and intensity with the | ||||||
| 3 | course of study presented in tax-supported
schools, and | ||||||
| 4 | vocational or technical schools or institutes organized and
| ||||||
| 5 | operated exclusively to provide a course of study of not less | ||||||
| 6 | than 6 weeks
duration and designed to prepare individuals to | ||||||
| 7 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
| 8 | industrial, business, or commercial
occupation.
| ||||||
| 9 | (28) Beginning January 1, 2000, personal property, | ||||||
| 10 | including
food,
purchased through fundraising
events for the | ||||||
| 11 | benefit of
a public or private elementary or
secondary school, | ||||||
| 12 | a group of those schools, or one or more school
districts if | ||||||
| 13 | the events are
sponsored by an entity recognized by the school | ||||||
| 14 | district that consists
primarily of volunteers and includes
| ||||||
| 15 | parents and teachers of the school children. This paragraph | ||||||
| 16 | does not apply
to fundraising
events (i) for the benefit of | ||||||
| 17 | private home instruction or (ii)
for which the fundraising | ||||||
| 18 | entity purchases the personal property sold at
the events from | ||||||
| 19 | another individual or entity that sold the property for the
| ||||||
| 20 | purpose of resale by the fundraising entity and that
profits | ||||||
| 21 | from the sale to the
fundraising entity. This paragraph is | ||||||
| 22 | exempt
from the provisions
of Section 3-90.
| ||||||
| 23 | (29) Beginning January 1, 2000 and through December 31, | ||||||
| 24 | 2001, new or
used automatic vending
machines that prepare and | ||||||
| 25 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
| 26 | items, and replacement parts for these machines.
Beginning | ||||||
| |||||||
| |||||||
| 1 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
| 2 | for machines used in
commercial, coin-operated amusement and | ||||||
| 3 | vending business if a use or occupation
tax is paid on the | ||||||
| 4 | gross receipts derived from the use of the commercial,
| ||||||
| 5 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
| 6 | is exempt from the provisions of Section 3-90.
| ||||||
| 7 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
| 8 | food for human consumption that is to be consumed off the | ||||||
| 9 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
| 10 | drinks, and food that
has been prepared for immediate | ||||||
| 11 | consumption) and prescription and
nonprescription medicines, | ||||||
| 12 | drugs, medical appliances, and insulin, urine
testing | ||||||
| 13 | materials, syringes, and needles used by diabetics, for human | ||||||
| 14 | use, when
purchased for use by a person receiving medical | ||||||
| 15 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
| 16 | resides in a licensed long-term care facility,
as defined in | ||||||
| 17 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 18 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 19 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
| 20 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
| 21 | Public Act 92-227),
computers and communications equipment
| ||||||
| 22 | utilized for any hospital purpose and equipment used in the | ||||||
| 23 | diagnosis,
analysis, or treatment of hospital patients | ||||||
| 24 | purchased by a lessor who leases
the equipment, under a lease | ||||||
| 25 | of one year or longer executed or in effect at the
time the | ||||||
| 26 | lessor would otherwise be subject to the tax imposed by this | ||||||
| |||||||
| |||||||
| 1 | Act, to a
hospital that has been issued an active tax exemption | ||||||
| 2 | identification number by
the Department under Section 1g of the | ||||||
| 3 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
| 4 | manner that does not qualify for this exemption or is
used in | ||||||
| 5 | any other nonexempt manner, the lessor shall be liable for the | ||||||
| 6 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
| 7 | case may be, based on
the fair market value of the property at | ||||||
| 8 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
| 9 | or attempt to collect an amount (however
designated) that | ||||||
| 10 | purports to reimburse that lessor for the tax imposed by this
| ||||||
| 11 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
| 12 | has not been
paid by the lessor. If a lessor improperly | ||||||
| 13 | collects any such amount from the
lessee, the lessee shall have | ||||||
| 14 | a legal right to claim a refund of that amount
from the lessor. | ||||||
| 15 | If, however, that amount is not refunded to the lessee for
any | ||||||
| 16 | reason, the lessor is liable to pay that amount to the | ||||||
| 17 | Department.
This paragraph is exempt from the provisions of | ||||||
| 18 | Section 3-90.
| ||||||
| 19 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
| 20 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
| 21 | leases the property,
under a lease of one year or longer | ||||||
| 22 | executed or in effect at the time the
lessor would otherwise be | ||||||
| 23 | subject to the tax imposed by this Act, to a
governmental body | ||||||
| 24 | that has been issued an active sales tax exemption
| ||||||
| 25 | identification number by the Department under Section 1g of the | ||||||
| 26 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
| |||||||
| |||||||
| 1 | manner that does not
qualify for this exemption or used in any | ||||||
| 2 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
| 3 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
| 4 | may be, based on the fair market value of the property at the | ||||||
| 5 | time
the nonqualifying use occurs. No lessor shall collect or | ||||||
| 6 | attempt to collect
an amount (however designated) that purports | ||||||
| 7 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
| 8 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
| 9 | paid by the lessor. If a lessor improperly collects any such
| ||||||
| 10 | amount from the lessee, the lessee shall have a legal right to | ||||||
| 11 | claim a refund
of that amount from the lessor. If, however, | ||||||
| 12 | that amount is not refunded to
the lessee for any reason, the | ||||||
| 13 | lessor is liable to pay that amount to the
Department. This | ||||||
| 14 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
| 15 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
| 16 | the use in this State of motor vehicles of
the second division | ||||||
| 17 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
| 18 | are subject to the commercial distribution fee imposed under | ||||||
| 19 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
| 20 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
| 21 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
| 22 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
| 23 | to the commercial distribution fee imposed under Section | ||||||
| 24 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
| 25 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
| 26 | this exemption applies to repair and
replacement parts added | ||||||
| |||||||
| |||||||
| 1 | after the initial purchase of such a motor vehicle if
that | ||||||
| 2 | motor
vehicle is used in a manner that would qualify for the | ||||||
| 3 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
| 4 | purposes of this paragraph, the term "used for commercial | ||||||
| 5 | purposes" means the transportation of persons or property in | ||||||
| 6 | furtherance of any commercial or industrial enterprise, | ||||||
| 7 | whether for-hire or not.
| ||||||
| 8 | (34) Beginning January 1, 2008, tangible personal property | ||||||
| 9 | used in the construction or maintenance of a community water | ||||||
| 10 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 11 | Protection Act, that is operated by a not-for-profit | ||||||
| 12 | corporation that holds a valid water supply permit issued under | ||||||
| 13 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
| 14 | exempt from the provisions of Section 3-90. | ||||||
| 15 | (35) Beginning January 1, 2010, materials, parts, | ||||||
| 16 | equipment, components, and furnishings incorporated into or | ||||||
| 17 | upon an aircraft as part of the modification, refurbishment, | ||||||
| 18 | completion, replacement, repair, or maintenance of the | ||||||
| 19 | aircraft. This exemption includes consumable supplies used in | ||||||
| 20 | the modification, refurbishment, completion, replacement, | ||||||
| 21 | repair, and maintenance of aircraft, but excludes any | ||||||
| 22 | materials, parts, equipment, components, and consumable | ||||||
| 23 | supplies used in the modification, replacement, repair, and | ||||||
| 24 | maintenance of aircraft engines or power plants, whether such | ||||||
| 25 | engines or power plants are installed or uninstalled upon any | ||||||
| 26 | such aircraft. "Consumable supplies" include, but are not | ||||||
| |||||||
| |||||||
| 1 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
| 2 | lubricants, cleaning solution, latex gloves, and protective | ||||||
| 3 | films. This exemption applies only to the use of qualifying | ||||||
| 4 | tangible personal property by persons who modify, refurbish, | ||||||
| 5 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
| 6 | hold an Air Agency Certificate and are empowered to operate an | ||||||
| 7 | approved repair station by the Federal Aviation | ||||||
| 8 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
| 9 | operations in accordance with Part 145 of the Federal Aviation | ||||||
| 10 | Regulations. The exemption does not include aircraft operated | ||||||
| 11 | by a commercial air carrier providing scheduled passenger air | ||||||
| 12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
| 13 | of the Federal Aviation Regulations. The changes made to this | ||||||
| 14 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
| 15 | law. | ||||||
| 16 | (36) Tangible personal property purchased by a | ||||||
| 17 | public-facilities corporation, as described in Section | ||||||
| 18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 19 | constructing or furnishing a municipal convention hall, but | ||||||
| 20 | only if the legal title to the municipal convention hall is | ||||||
| 21 | transferred to the municipality without any further | ||||||
| 22 | consideration by or on behalf of the municipality at the time | ||||||
| 23 | of the completion of the municipal convention hall or upon the | ||||||
| 24 | retirement or redemption of any bonds or other debt instruments | ||||||
| 25 | issued by the public-facilities corporation in connection with | ||||||
| 26 | the development of the municipal convention hall. This | ||||||
| |||||||
| |||||||
| 1 | exemption includes existing public-facilities corporations as | ||||||
| 2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
| 3 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
| 4 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
| 5 | and menstrual cups. | ||||||
| 6 | (38) Merchandise that is subject to the Rental Purchase | ||||||
| 7 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
| 8 | that the item is purchased to be rented subject to a rental | ||||||
| 9 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
| 10 | Act, and provide proof of registration under the Rental | ||||||
| 11 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
| 12 | is exempt from the provisions of Section 3-90. | ||||||
| 13 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
| 14 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | ||||||
| 15 | 6-29-18; 100-863, eff. 8-14-18.)
| ||||||
| 16 | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||||||
| 17 | Sec. 3-50. Manufacturing and assembly exemption. The | ||||||
| 18 | manufacturing
and assembling machinery and equipment exemption | ||||||
| 19 | includes
machinery and equipment that replaces machinery and | ||||||
| 20 | equipment in an
existing manufacturing facility as well as | ||||||
| 21 | machinery and equipment that
are for use in an expanded or new | ||||||
| 22 | manufacturing facility. The machinery and
equipment exemption | ||||||
| 23 | also includes machinery and equipment used in the
general | ||||||
| 24 | maintenance or repair of exempt machinery and equipment or for
| ||||||
| 25 | in-house manufacture of exempt machinery and equipment. | ||||||
| |||||||
| |||||||
| 1 | Beginning on July 1, 2017 and until July 1, 2019, the | ||||||
| 2 | manufacturing and assembling machinery and equipment exemption | ||||||
| 3 | also includes graphic arts machinery and equipment, as defined | ||||||
| 4 | in paragraph (6) of Section 3-5. The machinery and equipment | ||||||
| 5 | exemption does not include machinery and equipment used in (i) | ||||||
| 6 | the generation of electricity for wholesale or retail sale; | ||||||
| 7 | (ii) the generation or treatment of natural or artificial gas | ||||||
| 8 | for wholesale or retail sale that is delivered to customers | ||||||
| 9 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
| 10 | water for wholesale or retail sale that is delivered to | ||||||
| 11 | customers through pipes, pipelines, or mains. The provisions of | ||||||
| 12 | this amendatory Act of the 98th General Assembly are | ||||||
| 13 | declaratory of existing law as to the meaning and scope of this | ||||||
| 14 | exemption. For the
purposes of this exemption, terms have the | ||||||
| 15 | following
meanings:
| ||||||
| 16 | (1) "Manufacturing process" means the production of
an | ||||||
| 17 | article of tangible personal property, whether the article
| ||||||
| 18 | is a finished product or an article for use in the process | ||||||
| 19 | of manufacturing
or assembling a different article of | ||||||
| 20 | tangible personal property, by
a procedure commonly | ||||||
| 21 | regarded as manufacturing, processing, fabricating, or
| ||||||
| 22 | refining that changes some existing material into a | ||||||
| 23 | material
with a different form, use, or name. In relation | ||||||
| 24 | to a recognized integrated
business composed of a series of | ||||||
| 25 | operations that collectively constitute
manufacturing, or | ||||||
| 26 | individually constitute
manufacturing operations, the | ||||||
| |||||||
| |||||||
| 1 | manufacturing process commences with the
first operation | ||||||
| 2 | or stage of production in the series
and does not end until | ||||||
| 3 | the completion of the final product
in the last operation | ||||||
| 4 | or stage of production in the series. For purposes
of this | ||||||
| 5 | exemption, photoprocessing is a
manufacturing process of | ||||||
| 6 | tangible personal property for wholesale or retail
sale.
| ||||||
| 7 | (2) "Assembling process" means the production of
an | ||||||
| 8 | article of tangible personal property, whether the article
| ||||||
| 9 | is a finished product or an article for use in the process | ||||||
| 10 | of manufacturing
or assembling a different article of | ||||||
| 11 | tangible personal property, by the
combination of existing | ||||||
| 12 | materials in a manner commonly regarded as
assembling that | ||||||
| 13 | results in an article or material of a different
form, use, | ||||||
| 14 | or name.
| ||||||
| 15 | (3) "Machinery" means major
mechanical machines or | ||||||
| 16 | major components of those machines contributing to a
| ||||||
| 17 | manufacturing or assembling process.
| ||||||
| 18 | (4) "Equipment" includes an independent device
or tool | ||||||
| 19 | separate from machinery but essential to an integrated
| ||||||
| 20 | manufacturing or assembly process; including computers | ||||||
| 21 | used primarily in
a manufacturer's computer assisted | ||||||
| 22 | design,
computer assisted manufacturing (CAD/CAM) system; | ||||||
| 23 | any
subunit or assembly comprising a component of any | ||||||
| 24 | machinery or auxiliary,
adjunct, or attachment parts of | ||||||
| 25 | machinery, such as tools, dies, jigs,
fixtures, patterns, | ||||||
| 26 | and molds; and any parts that require
periodic replacement | ||||||
| |||||||
| |||||||
| 1 | in the course of normal operation; but does not
include | ||||||
| 2 | hand tools. Equipment includes chemicals or chemicals | ||||||
| 3 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
| 4 | acting as catalysts effect a direct and
immediate change | ||||||
| 5 | upon a
product being manufactured or assembled for | ||||||
| 6 | wholesale or retail sale or
lease. | ||||||
| 7 | (5) "Production related tangible personal property" | ||||||
| 8 | means all tangible personal property that is used or | ||||||
| 9 | consumed by the purchaser in a manufacturing facility in | ||||||
| 10 | which a manufacturing process takes place and includes, | ||||||
| 11 | without limitation, tangible personal property that is | ||||||
| 12 | purchased for incorporation into real estate within a | ||||||
| 13 | manufacturing facility and tangible personal property that | ||||||
| 14 | is used or consumed in activities such as research and | ||||||
| 15 | development, preproduction material handling, receiving, | ||||||
| 16 | quality control, inventory control, storage, staging, and | ||||||
| 17 | packaging for shipping and transportation purposes. | ||||||
| 18 | "Production related tangible personal property" does not | ||||||
| 19 | include (i) tangible personal property that is used, within | ||||||
| 20 | or without a manufacturing facility, in sales, purchasing, | ||||||
| 21 | accounting, fiscal management, marketing, personnel | ||||||
| 22 | recruitment or selection, or landscaping or (ii) tangible | ||||||
| 23 | personal property that is required to be titled or | ||||||
| 24 | registered with a department, agency, or unit of federal, | ||||||
| 25 | State, or local government.
| ||||||
| 26 | The manufacturing and assembling machinery and equipment | ||||||
| |||||||
| |||||||
| 1 | exemption includes production related tangible personal | ||||||
| 2 | property that is purchased on or after July 1, 2007 and on or | ||||||
| 3 | before June 30, 2008. The exemption for production related | ||||||
| 4 | tangible personal property is subject to both of the following | ||||||
| 5 | limitations: | ||||||
| 6 | (1) The maximum amount of the exemption for any one | ||||||
| 7 | taxpayer may not exceed 5% of the purchase price of | ||||||
| 8 | production related tangible personal property that is | ||||||
| 9 | purchased on or after July 1, 2007 and on or before June | ||||||
| 10 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
| 11 | be earned by the purchase of production related tangible | ||||||
| 12 | personal property for which an exemption is received under | ||||||
| 13 | this Section. | ||||||
| 14 | (2) The maximum aggregate amount of the exemptions for | ||||||
| 15 | production related tangible personal property awarded | ||||||
| 16 | under this Act and the Retailers' Occupation Tax Act to all | ||||||
| 17 | taxpayers may not exceed $10,000,000. If the claims for the | ||||||
| 18 | exemption exceed $10,000,000, then the Department shall | ||||||
| 19 | reduce the amount of the exemption to each taxpayer on a | ||||||
| 20 | pro rata basis. | ||||||
| 21 | The Department may adopt rules to implement and administer the | ||||||
| 22 | exemption for production related tangible personal property. | ||||||
| 23 | The manufacturing and assembling machinery and equipment
| ||||||
| 24 | exemption includes the sale of materials to a purchaser who
| ||||||
| 25 | produces exempted types of machinery, equipment, or tools and | ||||||
| 26 | who rents or
leases that machinery, equipment, or tools to a
| ||||||
| |||||||
| |||||||
| 1 | manufacturer of tangible
personal property. This exemption | ||||||
| 2 | also includes the sale of materials to a
purchaser who | ||||||
| 3 | manufactures those materials into an exempted type of
| ||||||
| 4 | machinery, equipment, or tools that the purchaser uses
himself | ||||||
| 5 | or herself in the
manufacturing of tangible personal property. | ||||||
| 6 | This exemption includes the
sale of exempted types of machinery | ||||||
| 7 | or equipment to a
purchaser who is not the manufacturer, but | ||||||
| 8 | who rents or leases the use of
the property to a manufacturer. | ||||||
| 9 | The purchaser of the machinery and
equipment who has an active | ||||||
| 10 | resale registration number shall
furnish that number to the | ||||||
| 11 | seller at the time of purchase.
A user of the machinery, | ||||||
| 12 | equipment, or tools without an
active resale registration | ||||||
| 13 | number shall prepare a certificate of exemption
for each | ||||||
| 14 | transaction stating facts establishing the exemption for that
| ||||||
| 15 | transaction, and that certificate shall be
available to the | ||||||
| 16 | Department for inspection or audit. The Department shall
| ||||||
| 17 | prescribe the form of the certificate. Informal rulings, | ||||||
| 18 | opinions, or
letters issued by the Department in
response to an | ||||||
| 19 | inquiry or request for an opinion from any person
regarding the | ||||||
| 20 | coverage and applicability of this exemption to specific
| ||||||
| 21 | devices shall be published, maintained as a public record, and | ||||||
| 22 | made
available for public inspection and copying. If the | ||||||
| 23 | informal ruling,
opinion, or letter contains trade secrets or | ||||||
| 24 | other confidential
information, where possible, the Department | ||||||
| 25 | shall delete that information
before publication. Whenever | ||||||
| 26 | informal rulings, opinions, or
letters contain a policy of | ||||||
| |||||||
| |||||||
| 1 | general applicability, the Department
shall formulate and | ||||||
| 2 | adopt that policy as a rule in accordance with the
Illinois | ||||||
| 3 | Administrative Procedure Act.
| ||||||
| 4 | The manufacturing and assembling machinery and equipment
| ||||||
| 5 | exemption is exempt from the provisions of Section 3-90. | ||||||
| 6 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
| 7 | Section 155. The Service Use Tax Act is amended by changing | ||||||
| 8 | Sections 2 and 3-5 as follows:
| ||||||
| 9 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
| 10 | Sec. 2. Definitions. In this Act: | ||||||
| 11 | "Use" means the exercise by any person of any right or | ||||||
| 12 | power
over tangible personal property incident to the ownership | ||||||
| 13 | of that
property, but does not include the sale or use for | ||||||
| 14 | demonstration by him
of that property in any form as tangible | ||||||
| 15 | personal property in the
regular course of business.
"Use" does | ||||||
| 16 | not mean the interim
use of
tangible personal property nor the | ||||||
| 17 | physical incorporation of tangible
personal property, as an | ||||||
| 18 | ingredient or constituent, into other tangible
personal | ||||||
| 19 | property, (a) which is sold in the regular course of business
| ||||||
| 20 | or (b) which the person incorporating such ingredient or | ||||||
| 21 | constituent
therein has undertaken at the time of such purchase | ||||||
| 22 | to cause to be
transported in interstate commerce to | ||||||
| 23 | destinations outside the State of
Illinois.
| ||||||
| 24 | "Purchased from a serviceman" means the acquisition of the | ||||||
| |||||||
| |||||||
| 1 | ownership
of, or title to, tangible personal property through a | ||||||
| 2 | sale of service.
| ||||||
| 3 | "Purchaser" means any person who, through a sale of | ||||||
| 4 | service, acquires
the ownership of, or title to, any tangible | ||||||
| 5 | personal property.
| ||||||
| 6 | "Cost price" means the consideration paid by the serviceman | ||||||
| 7 | for a
purchase valued in money, whether paid in money or | ||||||
| 8 | otherwise, including
cash, credits and services, and shall be | ||||||
| 9 | determined without any
deduction on account of the supplier's | ||||||
| 10 | cost of the property sold or on
account of any other expense | ||||||
| 11 | incurred by the supplier. When a serviceman
contracts out part | ||||||
| 12 | or all of the services required in his sale of service,
it | ||||||
| 13 | shall be presumed that the cost price to the serviceman of the | ||||||
| 14 | property
transferred to him or her by his or her subcontractor | ||||||
| 15 | is equal to 50% of
the subcontractor's charges to the | ||||||
| 16 | serviceman in the absence of proof of
the consideration paid by | ||||||
| 17 | the subcontractor for the purchase of such property.
| ||||||
| 18 | "Selling price" means the consideration for a sale valued | ||||||
| 19 | in money
whether received in money or otherwise, including | ||||||
| 20 | cash, credits and
service, and shall be determined without any | ||||||
| 21 | deduction on account of the
serviceman's cost of the property | ||||||
| 22 | sold, the cost of materials used,
labor or service cost or any | ||||||
| 23 | other expense whatsoever, but does not
include interest or | ||||||
| 24 | finance charges which appear as separate items on
the bill of | ||||||
| 25 | sale or sales contract nor charges that are added to prices
by | ||||||
| 26 | sellers on account of the seller's duty to collect, from the
| ||||||
| |||||||
| |||||||
| 1 | purchaser, the tax that is imposed by this Act.
| ||||||
| 2 | "Department" means the Department of Revenue.
| ||||||
| 3 | "Person" means any natural individual, firm, partnership,
| ||||||
| 4 | association, joint stock company, joint venture, public or | ||||||
| 5 | private
corporation, limited liability company, and any | ||||||
| 6 | receiver, executor, trustee,
guardian or other representative | ||||||
| 7 | appointed by order of any court.
| ||||||
| 8 | "Sale of service" means any transaction except:
| ||||||
| 9 | (1) a retail sale of tangible personal property taxable | ||||||
| 10 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
| 11 | Tax Act.
| ||||||
| 12 | (2) a sale of tangible personal property for the | ||||||
| 13 | purpose of resale
made in compliance with Section 2c of the | ||||||
| 14 | Retailers' Occupation Tax Act.
| ||||||
| 15 | (3) except as hereinafter provided, a sale or transfer | ||||||
| 16 | of tangible
personal property as an incident to the | ||||||
| 17 | rendering of service for or by
any governmental body, or | ||||||
| 18 | for or by any corporation, society,
association, | ||||||
| 19 | foundation or institution organized and operated
| ||||||
| 20 | exclusively for charitable, religious or educational | ||||||
| 21 | purposes or any
not-for-profit corporation, society, | ||||||
| 22 | association, foundation,
institution or organization which | ||||||
| 23 | has no compensated officers or
employees and which is | ||||||
| 24 | organized and operated primarily for the
recreation of | ||||||
| 25 | persons 55 years of age or older. A limited liability | ||||||
| 26 | company
may qualify for the exemption under this paragraph | ||||||
| |||||||
| |||||||
| 1 | only if the limited
liability company is organized and | ||||||
| 2 | operated exclusively for educational
purposes.
| ||||||
| 3 | (4) (blank).
| ||||||
| 4 | (4a) a sale or transfer of tangible personal
property | ||||||
| 5 | as an incident
to the rendering of service for owners, | ||||||
| 6 | lessors, or shippers of tangible
personal property which is | ||||||
| 7 | utilized by interstate carriers for hire for
use as rolling | ||||||
| 8 | stock moving in interstate commerce so long as so used by
| ||||||
| 9 | interstate carriers for hire, and equipment operated by a
| ||||||
| 10 | telecommunications provider, licensed as a common carrier | ||||||
| 11 | by the Federal
Communications Commission, which is | ||||||
| 12 | permanently installed in or affixed to
aircraft moving in | ||||||
| 13 | interstate commerce.
| ||||||
| 14 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
| 15 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
| 16 | division with a gross vehicle weight in excess of 8,000 | ||||||
| 17 | pounds as an
incident to the rendering of service if that | ||||||
| 18 | motor
vehicle is subject
to the commercial distribution fee | ||||||
| 19 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
| 20 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
| 21 | use in this State of motor vehicles of the second division: | ||||||
| 22 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
| 23 | pounds; (ii) that are subject to the commercial | ||||||
| 24 | distribution fee imposed under Section 3-815.1 of the | ||||||
| 25 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
| 26 | for commercial purposes. Through June 30, 2005, this
| ||||||
| |||||||
| |||||||
| 1 | exemption applies to repair and replacement parts added | ||||||
| 2 | after the
initial
purchase of such a motor vehicle if that | ||||||
| 3 | motor vehicle is used in a manner that
would
qualify for | ||||||
| 4 | the rolling stock exemption otherwise provided for in this | ||||||
| 5 | Act. For purposes of this paragraph, "used for commercial | ||||||
| 6 | purposes" means the transportation of persons or property | ||||||
| 7 | in furtherance of any commercial or industrial enterprise | ||||||
| 8 | whether for-hire or not.
| ||||||
| 9 | (5) a sale or transfer of machinery and equipment used | ||||||
| 10 | primarily in the
process of the manufacturing or | ||||||
| 11 | assembling, either in an existing, an expanded
or a new | ||||||
| 12 | manufacturing facility, of tangible personal property for | ||||||
| 13 | wholesale or
retail sale or lease, whether such sale or | ||||||
| 14 | lease is made directly by the
manufacturer or by some other | ||||||
| 15 | person, whether the materials used in the process
are owned | ||||||
| 16 | by the manufacturer or some other person, or whether such | ||||||
| 17 | sale or
lease is made apart from or as an incident to the | ||||||
| 18 | seller's engaging in a
service occupation and the | ||||||
| 19 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
| 20 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
| 21 | exemption provided by this paragraph (5) does not include | ||||||
| 22 | machinery and equipment used in (i) the generation of | ||||||
| 23 | electricity for wholesale or retail sale; (ii) the | ||||||
| 24 | generation or treatment of natural or artificial gas for | ||||||
| 25 | wholesale or retail sale that is delivered to customers | ||||||
| 26 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
| |||||||
| |||||||
| 1 | of water for wholesale or retail sale that is delivered to | ||||||
| 2 | customers through pipes, pipelines, or mains. The | ||||||
| 3 | provisions of Public Act 98-583 are declaratory of existing | ||||||
| 4 | law as to the meaning and scope of this exemption. The | ||||||
| 5 | exemption under this paragraph (5) is exempt from the | ||||||
| 6 | provisions of Section 3-75.
| ||||||
| 7 | (5a) the repairing, reconditioning or remodeling, for | ||||||
| 8 | a
common carrier by rail, of tangible personal property | ||||||
| 9 | which belongs to such
carrier for hire, and as to which | ||||||
| 10 | such carrier receives the physical possession
of the | ||||||
| 11 | repaired, reconditioned or remodeled item of tangible | ||||||
| 12 | personal property
in Illinois, and which such carrier | ||||||
| 13 | transports, or shares with another common
carrier in the | ||||||
| 14 | transportation of such property, out of Illinois on a | ||||||
| 15 | standard
uniform bill of lading showing the person who | ||||||
| 16 | repaired, reconditioned or
remodeled the property to a | ||||||
| 17 | destination outside Illinois, for use outside
Illinois.
| ||||||
| 18 | (5b) a sale or transfer of tangible personal property | ||||||
| 19 | which is produced by
the seller thereof on special order in | ||||||
| 20 | such a way as to have made the
applicable tax the Service | ||||||
| 21 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
| 22 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
| 23 | carrier by rail
which receives the physical possession of | ||||||
| 24 | such property in Illinois, and which
transports such | ||||||
| 25 | property, or shares with another common carrier in the
| ||||||
| 26 | transportation of such property, out of Illinois on a | ||||||
| |||||||
| |||||||
| 1 | standard uniform bill of
lading showing the seller of the | ||||||
| 2 | property as the shipper or consignor of such
property to a | ||||||
| 3 | destination outside Illinois, for use outside Illinois.
| ||||||
| 4 | (6) until July 1, 2003, a sale or transfer of | ||||||
| 5 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
| 6 | and assembled or installed by the retailer, which
machinery | ||||||
| 7 | and equipment is certified by the user to be used only for | ||||||
| 8 | the
production of ethyl alcohol that will be used for | ||||||
| 9 | consumption as motor fuel
or as a component of motor fuel | ||||||
| 10 | for the personal use of such user and not
subject to sale | ||||||
| 11 | or resale.
| ||||||
| 12 | (7) at the election of any serviceman not required to | ||||||
| 13 | be
otherwise registered as a retailer under Section 2a of | ||||||
| 14 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
| 15 | year sales
of service in which the aggregate annual cost | ||||||
| 16 | price of tangible
personal property transferred as an | ||||||
| 17 | incident to the sales of service is
less than 35%, or 75% | ||||||
| 18 | in the case of servicemen transferring prescription
drugs | ||||||
| 19 | or servicemen engaged in graphic arts production, of the | ||||||
| 20 | aggregate
annual total gross receipts from all sales of | ||||||
| 21 | service. The purchase of
such tangible personal property by | ||||||
| 22 | the serviceman shall be subject to tax
under the Retailers' | ||||||
| 23 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
| 24 | primary serviceman who has made the election described in | ||||||
| 25 | this paragraph
subcontracts service work to a secondary | ||||||
| 26 | serviceman who has also made the
election described in this | ||||||
| |||||||
| |||||||
| 1 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
| 2 | liability if the secondary serviceman (i) has paid or will | ||||||
| 3 | pay
Use
Tax on his or her cost price of any tangible | ||||||
| 4 | personal property transferred
to the primary serviceman | ||||||
| 5 | and (ii) certifies that fact in writing to the
primary
| ||||||
| 6 | serviceman.
| ||||||
| 7 | Tangible personal property transferred incident to the | ||||||
| 8 | completion of a
maintenance agreement is exempt from the tax | ||||||
| 9 | imposed pursuant to this Act.
| ||||||
| 10 | Exemption (5) also includes machinery and equipment used in | ||||||
| 11 | the general
maintenance or repair of such exempt machinery and | ||||||
| 12 | equipment or for in-house
manufacture of exempt machinery and | ||||||
| 13 | equipment. On and after July 1, 2017 and until July 1, 2019, | ||||||
| 14 | exemption (5) also
includes graphic arts machinery and | ||||||
| 15 | equipment, as
defined in paragraph (5) of Section 3-5. The | ||||||
| 16 | machinery and equipment exemption does not include machinery | ||||||
| 17 | and equipment used in (i) the generation of electricity for | ||||||
| 18 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
| 19 | natural or artificial gas for wholesale or retail sale that is | ||||||
| 20 | delivered to customers through pipes, pipelines, or mains; or | ||||||
| 21 | (iii) the treatment of water for wholesale or retail sale that | ||||||
| 22 | is delivered to customers through pipes, pipelines, or mains. | ||||||
| 23 | The provisions of Public Act 98-583 are declaratory of existing | ||||||
| 24 | law as to the meaning and scope of this exemption. For the | ||||||
| 25 | purposes of exemption
(5), each of these terms shall have the | ||||||
| 26 | following meanings: (1) "manufacturing
process" shall mean the | ||||||
| |||||||
| |||||||
| 1 | production of any article of tangible personal
property, | ||||||
| 2 | whether such article is a finished product or an article for | ||||||
| 3 | use in
the process of manufacturing or assembling a different | ||||||
| 4 | article of tangible
personal property, by procedures commonly | ||||||
| 5 | regarded as manufacturing,
processing, fabricating, or | ||||||
| 6 | refining which changes some existing
material or materials into | ||||||
| 7 | a material with a different form, use or
name. In relation to a | ||||||
| 8 | recognized integrated business composed of a
series of | ||||||
| 9 | operations which collectively constitute manufacturing, or
| ||||||
| 10 | individually constitute manufacturing operations, the | ||||||
| 11 | manufacturing
process shall be deemed to commence with the | ||||||
| 12 | first operation or stage of
production in the series, and shall | ||||||
| 13 | not be deemed to end until the
completion of the final product | ||||||
| 14 | in the last operation or stage of
production in the series; and | ||||||
| 15 | further, for purposes of exemption (5),
photoprocessing is | ||||||
| 16 | deemed to be a manufacturing process of tangible
personal | ||||||
| 17 | property for wholesale or retail sale; (2) "assembling process" | ||||||
| 18 | shall
mean the production of any article of tangible personal | ||||||
| 19 | property, whether such
article is a finished product or an | ||||||
| 20 | article for use in the process of
manufacturing or assembling a | ||||||
| 21 | different article of tangible personal
property, by the | ||||||
| 22 | combination of existing materials in a manner commonly
regarded | ||||||
| 23 | as assembling which results in a material of a different form,
| ||||||
| 24 | use or name; (3) "machinery" shall mean major mechanical | ||||||
| 25 | machines or
major components of such machines contributing to a | ||||||
| 26 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
| |||||||
| |||||||
| 1 | include any independent
device or tool separate from any | ||||||
| 2 | machinery but essential to an
integrated manufacturing or | ||||||
| 3 | assembly process; including computers
used primarily in a | ||||||
| 4 | manufacturer's computer
assisted design, computer assisted | ||||||
| 5 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
| 6 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
| 7 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
| 8 | fixtures, patterns and molds; or any parts which require | ||||||
| 9 | periodic
replacement in the course of normal operation; but | ||||||
| 10 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
| 11 | chemicals acting as catalysts but only if the
chemicals or | ||||||
| 12 | chemicals acting as catalysts effect a direct and immediate | ||||||
| 13 | change
upon a
product being manufactured or assembled for | ||||||
| 14 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
| 15 | machinery and equipment who has an active
resale registration | ||||||
| 16 | number shall furnish such number to the seller at the
time of | ||||||
| 17 | purchase. The user of such machinery and equipment and tools
| ||||||
| 18 | without an active resale registration number shall prepare a | ||||||
| 19 | certificate of
exemption for each transaction stating facts | ||||||
| 20 | establishing the exemption for
that transaction, which | ||||||
| 21 | certificate shall be available to the Department
for inspection | ||||||
| 22 | or audit. The Department shall prescribe the form of the
| ||||||
| 23 | certificate.
| ||||||
| 24 | Any informal rulings, opinions or letters issued by the | ||||||
| 25 | Department in
response to an inquiry or request for any opinion | ||||||
| 26 | from any person
regarding the coverage and applicability of | ||||||
| |||||||
| |||||||
| 1 | exemption (5) to specific
devices shall be published, | ||||||
| 2 | maintained as a public record, and made
available for public | ||||||
| 3 | inspection and copying. If the informal ruling,
opinion or | ||||||
| 4 | letter contains trade secrets or other confidential
| ||||||
| 5 | information, where possible the Department shall delete such | ||||||
| 6 | information
prior to publication. Whenever such informal | ||||||
| 7 | rulings, opinions, or
letters contain any policy of general | ||||||
| 8 | applicability, the Department
shall formulate and adopt such | ||||||
| 9 | policy as a rule in accordance with the
provisions of the | ||||||
| 10 | Illinois Administrative Procedure Act.
| ||||||
| 11 | On and after July 1, 1987, no entity otherwise eligible | ||||||
| 12 | under exemption
(3) of this Section shall make tax-free | ||||||
| 13 | purchases unless it has an active
exemption identification | ||||||
| 14 | number issued by the Department.
| ||||||
| 15 | The purchase, employment and transfer of such tangible | ||||||
| 16 | personal
property as newsprint and ink for the primary purpose | ||||||
| 17 | of conveying news
(with or without other information) is not a | ||||||
| 18 | purchase, use or sale of
service or of tangible personal | ||||||
| 19 | property within the meaning of this Act.
| ||||||
| 20 | "Serviceman" means any person who is engaged in the | ||||||
| 21 | occupation of
making sales of service.
| ||||||
| 22 | "Sale at retail" means "sale at retail" as defined in the | ||||||
| 23 | Retailers'
Occupation Tax Act.
| ||||||
| 24 | "Supplier" means any person who makes sales of tangible | ||||||
| 25 | personal
property to servicemen for the purpose of resale as an | ||||||
| 26 | incident to a
sale of service.
| ||||||
| |||||||
| |||||||
| 1 | "Serviceman maintaining a place of business in this State", | ||||||
| 2 | or any
like term, means and includes any serviceman:
| ||||||
| 3 | (1) having or maintaining within this State, directly | ||||||
| 4 | or by a
subsidiary, an office, distribution house, sales | ||||||
| 5 | house, warehouse or
other place of business, or any agent | ||||||
| 6 | or other representative operating
within this State under | ||||||
| 7 | the authority of the serviceman or its
subsidiary, | ||||||
| 8 | irrespective of whether such place of business or agent or
| ||||||
| 9 | other representative is located here permanently or | ||||||
| 10 | temporarily, or
whether such serviceman or subsidiary is | ||||||
| 11 | licensed to do business in this
State; | ||||||
| 12 | (1.1) having a contract with a person located in this | ||||||
| 13 | State under which the person, for a commission or other | ||||||
| 14 | consideration based on the sale of service by the | ||||||
| 15 | serviceman, directly or indirectly refers potential | ||||||
| 16 | customers to the serviceman by providing to the potential | ||||||
| 17 | customers a promotional code or other mechanism that allows | ||||||
| 18 | the serviceman to track purchases referred by such persons. | ||||||
| 19 | Examples of mechanisms that allow the serviceman to track | ||||||
| 20 | purchases referred by such persons include but are not | ||||||
| 21 | limited to the use of a link on the person's Internet | ||||||
| 22 | website, promotional codes distributed through the | ||||||
| 23 | person's hand-delivered or mailed material, and | ||||||
| 24 | promotional codes distributed by the person through radio | ||||||
| 25 | or other broadcast media. The provisions of this paragraph | ||||||
| 26 | (1.1) shall apply only if the cumulative gross receipts | ||||||
| |||||||
| |||||||
| 1 | from sales of service by the serviceman to customers who | ||||||
| 2 | are referred to the serviceman by all persons in this State | ||||||
| 3 | under such contracts exceed $10,000 during the preceding 4 | ||||||
| 4 | quarterly periods ending on the last day of March, June, | ||||||
| 5 | September, and December; a serviceman meeting the | ||||||
| 6 | requirements of this paragraph (1.1) shall be presumed to | ||||||
| 7 | be maintaining a place of business in this State but may | ||||||
| 8 | rebut this presumption by submitting proof that the | ||||||
| 9 | referrals or other activities pursued within this State by | ||||||
| 10 | such persons were not sufficient to meet the nexus | ||||||
| 11 | standards of the United States Constitution during the | ||||||
| 12 | preceding 4 quarterly periods; | ||||||
| 13 | (1.2) beginning July 1, 2011, having a contract with a | ||||||
| 14 | person located in this State under which: | ||||||
| 15 | (A) the serviceman sells the same or substantially | ||||||
| 16 | similar line of services as the person located in this | ||||||
| 17 | State and does so using an identical or substantially | ||||||
| 18 | similar name, trade name, or trademark as the person | ||||||
| 19 | located in this State; and | ||||||
| 20 | (B) the serviceman provides a commission or other | ||||||
| 21 | consideration to the person located in this State based | ||||||
| 22 | upon the sale of services by the serviceman. | ||||||
| 23 | The provisions of this paragraph (1.2) shall apply only if | ||||||
| 24 | the cumulative gross receipts from sales of service by the | ||||||
| 25 | serviceman to customers in this State under all such | ||||||
| 26 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
| |||||||
| |||||||
| 1 | periods ending on the last day of March, June, September, | ||||||
| 2 | and December;
| ||||||
| 3 | (2) soliciting orders for tangible personal property | ||||||
| 4 | by means of a
telecommunication or television shopping | ||||||
| 5 | system (which utilizes toll free
numbers) which is intended | ||||||
| 6 | by the retailer to be broadcast by cable
television or | ||||||
| 7 | other means of broadcasting, to consumers located in this | ||||||
| 8 | State;
| ||||||
| 9 | (3) pursuant to a contract with a broadcaster or | ||||||
| 10 | publisher located in this
State, soliciting orders for | ||||||
| 11 | tangible personal property by means of advertising
which is | ||||||
| 12 | disseminated primarily to consumers located in this State | ||||||
| 13 | and only
secondarily to bordering jurisdictions;
| ||||||
| 14 | (4) soliciting orders for tangible personal property | ||||||
| 15 | by mail if the
solicitations are substantial and recurring | ||||||
| 16 | and if the retailer benefits
from any banking, financing, | ||||||
| 17 | debt collection, telecommunication, or
marketing | ||||||
| 18 | activities occurring in this State or benefits from the | ||||||
| 19 | location
in this State of authorized installation, | ||||||
| 20 | servicing, or repair facilities;
| ||||||
| 21 | (5) being owned or controlled by the same interests | ||||||
| 22 | which own or
control any retailer engaging in business in | ||||||
| 23 | the same or similar line of
business in this State;
| ||||||
| 24 | (6) having a franchisee or licensee operating under its | ||||||
| 25 | trade name if
the franchisee or licensee is required to | ||||||
| 26 | collect the tax under this Section;
| ||||||
| |||||||
| |||||||
| 1 | (7) pursuant to a contract with a cable television | ||||||
| 2 | operator located in
this State, soliciting orders for | ||||||
| 3 | tangible personal property by means of
advertising which is | ||||||
| 4 | transmitted or distributed over a cable television
system | ||||||
| 5 | in this State;
| ||||||
| 6 | (8) engaging in activities in Illinois, which | ||||||
| 7 | activities in the
state in which the supply business | ||||||
| 8 | engaging in such activities is located
would constitute | ||||||
| 9 | maintaining a place of business in that state; or
| ||||||
| 10 | (9) beginning October 1, 2018, making sales of service | ||||||
| 11 | to purchasers in Illinois from outside of Illinois if: | ||||||
| 12 | (A) the cumulative gross receipts from sales of | ||||||
| 13 | service to purchasers in Illinois are $100,000 or more; | ||||||
| 14 | or | ||||||
| 15 | (B) the serviceman enters into 200 or more separate | ||||||
| 16 | transactions for sales of service to purchasers in | ||||||
| 17 | Illinois. | ||||||
| 18 | The serviceman shall determine on a quarterly basis, | ||||||
| 19 | ending on the last day of March, June, September, and | ||||||
| 20 | December, whether he or she meets the criteria of either | ||||||
| 21 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
| 22 | preceding 12-month period. If the serviceman meets the | ||||||
| 23 | criteria of either subparagraph (A) or (B) for a 12-month | ||||||
| 24 | period, he or she is considered a serviceman maintaining a | ||||||
| 25 | place of business in this State and is required to collect | ||||||
| 26 | and remit the tax imposed under this Act and file returns | ||||||
| |||||||
| |||||||
| 1 | for one year. At the end of that one-year period, the | ||||||
| 2 | serviceman shall determine whether the serviceman met the | ||||||
| 3 | criteria of either subparagraph (A) or (B) during the | ||||||
| 4 | preceding 12-month period. If the serviceman met the | ||||||
| 5 | criteria in either subparagraph (A) or (B) for the | ||||||
| 6 | preceding 12-month period, he or she is considered a | ||||||
| 7 | serviceman maintaining a place of business in this State | ||||||
| 8 | and is required to collect and remit the tax imposed under | ||||||
| 9 | this Act and file returns for the subsequent year. If at | ||||||
| 10 | the end of a one-year period a serviceman that was required | ||||||
| 11 | to collect and remit the tax imposed under this Act | ||||||
| 12 | determines that he or she did not meet the criteria in | ||||||
| 13 | either subparagraph (A) or (B) during the preceding | ||||||
| 14 | 12-month period, the serviceman subsequently shall | ||||||
| 15 | determine on a quarterly basis, ending on the last day of | ||||||
| 16 | March, June, September, and December, whether he or she | ||||||
| 17 | meets the criteria of either subparagraph (A) or (B) for | ||||||
| 18 | the preceding 12-month period. | ||||||
| 19 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
| 20 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
| ||||||
| 21 | (35 ILCS 110/3-5)
| ||||||
| 22 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
| 23 | personal property
is exempt from the tax imposed by this Act:
| ||||||
| 24 | (1) Personal property purchased from a corporation, | ||||||
| 25 | society,
association, foundation, institution, or | ||||||
| |||||||
| |||||||
| 1 | organization, other than a limited
liability company, that is | ||||||
| 2 | organized and operated as a not-for-profit service
enterprise | ||||||
| 3 | for the benefit of persons 65 years of age or older if the | ||||||
| 4 | personal
property was not purchased by the enterprise for the | ||||||
| 5 | purpose of resale by the
enterprise.
| ||||||
| 6 | (2) Personal property purchased by a non-profit Illinois | ||||||
| 7 | county fair
association for use in conducting, operating, or | ||||||
| 8 | promoting the county fair.
| ||||||
| 9 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
| 10 | cultural
organization that establishes, by proof required by | ||||||
| 11 | the Department by rule,
that it has received an exemption under | ||||||
| 12 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
| 13 | organized and operated primarily for the
presentation
or | ||||||
| 14 | support of arts or cultural programming, activities, or | ||||||
| 15 | services. These
organizations include, but are not limited to, | ||||||
| 16 | music and dramatic arts
organizations such as symphony | ||||||
| 17 | orchestras and theatrical groups, arts and
cultural service | ||||||
| 18 | organizations, local arts councils, visual arts organizations,
| ||||||
| 19 | and media arts organizations.
On and after the effective date | ||||||
| 20 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
| 21 | an entity otherwise eligible for this exemption shall not
make | ||||||
| 22 | tax-free purchases unless it has an active identification | ||||||
| 23 | number issued by
the Department.
| ||||||
| 24 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
| 25 | coinage issued
by the State of Illinois, the government of the | ||||||
| 26 | United States of America,
or the government of any foreign | ||||||
| |||||||
| |||||||
| 1 | country, and bullion.
| ||||||
| 2 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
| 3 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 4 | equipment, including
repair and
replacement parts, both new and | ||||||
| 5 | used, and including that manufactured on
special order or | ||||||
| 6 | purchased for lease, certified by the purchaser to be used
| ||||||
| 7 | primarily for graphic arts production.
Equipment includes | ||||||
| 8 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
| 9 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
| 10 | immediate
change upon a graphic arts product. Beginning on July | ||||||
| 11 | 1, 2017 and until July 1, 2019, graphic arts machinery and | ||||||
| 12 | equipment is included in the manufacturing and assembling | ||||||
| 13 | machinery and equipment exemption under Section 2 of this Act.
| ||||||
| 14 | (6) Personal property purchased from a teacher-sponsored | ||||||
| 15 | student
organization affiliated with an elementary or | ||||||
| 16 | secondary school located
in Illinois.
| ||||||
| 17 | (7) Farm machinery and equipment, both new and used, | ||||||
| 18 | including that
manufactured on special order, certified by the | ||||||
| 19 | purchaser to be used
primarily for production agriculture or | ||||||
| 20 | State or federal agricultural
programs, including individual | ||||||
| 21 | replacement parts for the machinery and
equipment, including | ||||||
| 22 | machinery and equipment purchased for lease,
and including | ||||||
| 23 | implements of husbandry defined in Section 1-130 of
the | ||||||
| 24 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 25 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
| 26 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
| |||||||
| |||||||
| 1 | but
excluding other motor vehicles required to be registered | ||||||
| 2 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
| 3 | hoop houses used for propagating, growing, or
overwintering | ||||||
| 4 | plants shall be considered farm machinery and equipment under
| ||||||
| 5 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
| 6 | shall include units sold
separately from a motor vehicle | ||||||
| 7 | required to be licensed and units sold mounted
on a motor | ||||||
| 8 | vehicle required to be licensed if the selling price of the | ||||||
| 9 | tender
is separately stated.
| ||||||
| 10 | Farm machinery and equipment shall include precision | ||||||
| 11 | farming equipment
that is
installed or purchased to be | ||||||
| 12 | installed on farm machinery and equipment
including, but not | ||||||
| 13 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
| 14 | or spreaders.
Precision farming equipment includes, but is not | ||||||
| 15 | limited to,
soil testing sensors, computers, monitors, | ||||||
| 16 | software, global positioning
and mapping systems, and other | ||||||
| 17 | such equipment.
| ||||||
| 18 | Farm machinery and equipment also includes computers, | ||||||
| 19 | sensors, software, and
related equipment used primarily in the
| ||||||
| 20 | computer-assisted operation of production agriculture | ||||||
| 21 | facilities, equipment,
and activities such as, but
not limited | ||||||
| 22 | to,
the collection, monitoring, and correlation of
animal and | ||||||
| 23 | crop data for the purpose of
formulating animal diets and | ||||||
| 24 | agricultural chemicals. This item (7) is exempt
from the | ||||||
| 25 | provisions of
Section 3-75.
| ||||||
| 26 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
| |||||||
| |||||||
| 1 | to or used by an air common
carrier, certified by the carrier | ||||||
| 2 | to be used for consumption, shipment, or
storage in the conduct | ||||||
| 3 | of its business as an air common carrier, for a
flight destined | ||||||
| 4 | for or returning from a location or locations
outside the | ||||||
| 5 | United States without regard to previous or subsequent domestic
| ||||||
| 6 | stopovers.
| ||||||
| 7 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
| 8 | or used by an air carrier, certified by the carrier to be used | ||||||
| 9 | for consumption, shipment, or storage in the conduct of its | ||||||
| 10 | business as an air common carrier, for a flight that (i) is | ||||||
| 11 | engaged in foreign trade or is engaged in trade between the | ||||||
| 12 | United States and any of its possessions and (ii) transports at | ||||||
| 13 | least one individual or package for hire from the city of | ||||||
| 14 | origination to the city of final destination on the same | ||||||
| 15 | aircraft, without regard to a change in the flight number of | ||||||
| 16 | that aircraft. | ||||||
| 17 | (9) Proceeds of mandatory service charges separately | ||||||
| 18 | stated on
customers' bills for the purchase and consumption of | ||||||
| 19 | food and beverages
acquired as an incident to the purchase of a | ||||||
| 20 | service from a serviceman, to
the extent that the proceeds of | ||||||
| 21 | the service charge are in fact
turned over as tips or as a | ||||||
| 22 | substitute for tips to the employees who
participate directly | ||||||
| 23 | in preparing, serving, hosting or cleaning up the
food or | ||||||
| 24 | beverage function with respect to which the service charge is | ||||||
| 25 | imposed.
| ||||||
| 26 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
| |||||||
| |||||||
| 1 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
| 2 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
| 3 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
| 4 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
| 5 | individual replacement part for oil field exploration,
| ||||||
| 6 | drilling, and production equipment, and (vi) machinery and | ||||||
| 7 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
| 8 | required to be registered under the Illinois
Vehicle Code.
| ||||||
| 9 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
| 10 | and
equipment, including repair and replacement parts, both new | ||||||
| 11 | and
used, including that manufactured on special order, | ||||||
| 12 | certified by the
purchaser to be used primarily for | ||||||
| 13 | photoprocessing, and including
photoprocessing machinery and | ||||||
| 14 | equipment purchased for lease.
| ||||||
| 15 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
| 16 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
| 17 | reclamation equipment, including
replacement parts and | ||||||
| 18 | equipment, and including
equipment purchased for lease, but | ||||||
| 19 | excluding motor vehicles required to be
registered under the | ||||||
| 20 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 21 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 22 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| 23 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
| 24 | during the period beginning July 1, 2003 and ending on August | ||||||
| 25 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
| 26 | (13) Semen used for artificial insemination of livestock | ||||||
| |||||||
| |||||||
| 1 | for direct
agricultural production.
| ||||||
| 2 | (14) Horses, or interests in horses, registered with and | ||||||
| 3 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
| 4 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
| 5 | Horse Association, United States
Trotting Association, or | ||||||
| 6 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
| 7 | racing for prizes. This item (14) is exempt from the provisions | ||||||
| 8 | of Section 3-75, and the exemption provided for under this item | ||||||
| 9 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
| 10 | claim for credit or refund is allowed on or after the effective | ||||||
| 11 | date of this amendatory Act of the 95th General Assembly for | ||||||
| 12 | such taxes paid during the period beginning May 30, 2000 and | ||||||
| 13 | ending on the effective date of this amendatory Act of the 95th | ||||||
| 14 | General Assembly.
| ||||||
| 15 | (15) Computers and communications equipment utilized for | ||||||
| 16 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
| 17 | analysis, or treatment of hospital patients purchased by a | ||||||
| 18 | lessor who leases
the
equipment, under a lease of one year or | ||||||
| 19 | longer executed or in effect at the
time
the lessor would | ||||||
| 20 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
| 21 | hospital
that has been issued an active tax exemption | ||||||
| 22 | identification number by the
Department under Section 1g of the | ||||||
| 23 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
| 24 | manner that does not qualify for
this exemption
or is used in | ||||||
| 25 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
| 26 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
| |||||||
| |||||||
| 1 | be, based on the fair market value of the property at the time | ||||||
| 2 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
| 3 | attempt to collect an
amount (however
designated) that purports | ||||||
| 4 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
| 5 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
| 6 | the lessor. If a lessor improperly collects any such amount | ||||||
| 7 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
| 8 | refund of that amount
from the lessor. If, however, that amount | ||||||
| 9 | is not refunded to the lessee for
any reason, the lessor is | ||||||
| 10 | liable to pay that amount to the Department.
| ||||||
| 11 | (16) Personal property purchased by a lessor who leases the
| ||||||
| 12 | property, under
a
lease of one year or longer executed or in | ||||||
| 13 | effect at the time
the lessor would otherwise be subject to the | ||||||
| 14 | tax imposed by this Act,
to a governmental body
that has been | ||||||
| 15 | issued an active tax exemption identification number by the
| ||||||
| 16 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
| 17 | Act.
If the
property is leased in a manner that does not | ||||||
| 18 | qualify for
this exemption
or is used in any other non-exempt | ||||||
| 19 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
| 20 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
| 21 | fair market value of the property at the time the
| ||||||
| 22 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
| 23 | to collect an
amount (however
designated) that purports to | ||||||
| 24 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
| 25 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
| 26 | the lessor. If a lessor improperly collects any such amount | ||||||
| |||||||
| |||||||
| 1 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
| 2 | refund of that amount
from the lessor. If, however, that amount | ||||||
| 3 | is not refunded to the lessee for
any reason, the lessor is | ||||||
| 4 | liable to pay that amount to the Department.
| ||||||
| 5 | (17) Beginning with taxable years ending on or after | ||||||
| 6 | December
31,
1995
and
ending with taxable years ending on or | ||||||
| 7 | before December 31, 2004,
personal property that is
donated for | ||||||
| 8 | disaster relief to be used in a State or federally declared
| ||||||
| 9 | disaster area in Illinois or bordering Illinois by a | ||||||
| 10 | manufacturer or retailer
that is registered in this State to a | ||||||
| 11 | corporation, society, association,
foundation, or institution | ||||||
| 12 | that has been issued a sales tax exemption
identification | ||||||
| 13 | number by the Department that assists victims of the disaster
| ||||||
| 14 | who reside within the declared disaster area.
| ||||||
| 15 | (18) Beginning with taxable years ending on or after | ||||||
| 16 | December
31, 1995 and
ending with taxable years ending on or | ||||||
| 17 | before December 31, 2004, personal
property that is used in the | ||||||
| 18 | performance of infrastructure repairs in this
State, including | ||||||
| 19 | but not limited to municipal roads and streets, access roads,
| ||||||
| 20 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
| 21 | line extensions,
water distribution and purification | ||||||
| 22 | facilities, storm water drainage and
retention facilities, and | ||||||
| 23 | sewage treatment facilities, resulting from a State
or | ||||||
| 24 | federally declared disaster in Illinois or bordering Illinois | ||||||
| 25 | when such
repairs are initiated on facilities located in the | ||||||
| 26 | declared disaster area
within 6 months after the disaster.
| ||||||
| |||||||
| |||||||
| 1 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
| 2 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
| 3 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
| 4 | provisions
of
Section 3-75.
| ||||||
| 5 | (20) A motor vehicle, as that term is defined in Section | ||||||
| 6 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
| 7 | corporation, limited liability
company, society, association, | ||||||
| 8 | foundation, or institution that is determined by
the Department | ||||||
| 9 | to be organized and operated exclusively for educational
| ||||||
| 10 | purposes. For purposes of this exemption, "a corporation, | ||||||
| 11 | limited liability
company, society, association, foundation, | ||||||
| 12 | or institution organized and
operated
exclusively for | ||||||
| 13 | educational purposes" means all tax-supported public schools,
| ||||||
| 14 | private schools that offer systematic instruction in useful | ||||||
| 15 | branches of
learning by methods common to public schools and | ||||||
| 16 | that compare favorably in
their scope and intensity with the | ||||||
| 17 | course of study presented in tax-supported
schools, and | ||||||
| 18 | vocational or technical schools or institutes organized and
| ||||||
| 19 | operated exclusively to provide a course of study of not less | ||||||
| 20 | than 6 weeks
duration and designed to prepare individuals to | ||||||
| 21 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
| 22 | industrial, business, or commercial
occupation.
| ||||||
| 23 | (21) Beginning January 1, 2000, personal property, | ||||||
| 24 | including
food,
purchased through fundraising
events for the | ||||||
| 25 | benefit of
a public or private elementary or
secondary school, | ||||||
| 26 | a group of those schools, or one or more school
districts if | ||||||
| |||||||
| |||||||
| 1 | the events are
sponsored by an entity recognized by the school | ||||||
| 2 | district that consists
primarily of volunteers and includes
| ||||||
| 3 | parents and teachers of the school children. This paragraph | ||||||
| 4 | does not apply
to fundraising
events (i) for the benefit of | ||||||
| 5 | private home instruction or (ii)
for which the fundraising | ||||||
| 6 | entity purchases the personal property sold at
the events from | ||||||
| 7 | another individual or entity that sold the property for the
| ||||||
| 8 | purpose of resale by the fundraising entity and that
profits | ||||||
| 9 | from the sale to the
fundraising entity. This paragraph is | ||||||
| 10 | exempt
from the provisions
of Section 3-75.
| ||||||
| 11 | (22) Beginning January 1, 2000
and through December 31, | ||||||
| 12 | 2001, new or used automatic vending
machines that prepare and | ||||||
| 13 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
| 14 | items, and replacement parts for these machines.
Beginning | ||||||
| 15 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
| 16 | for machines used in
commercial, coin-operated
amusement
and | ||||||
| 17 | vending business if a use or occupation tax is paid on the | ||||||
| 18 | gross receipts
derived from
the use of the commercial, | ||||||
| 19 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
| 20 | is exempt from the provisions of Section 3-75.
| ||||||
| 21 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
| 22 | food for human consumption that is to be consumed off the
| ||||||
| 23 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
| 24 | drinks, and food that
has been prepared for immediate | ||||||
| 25 | consumption) and prescription and
nonprescription medicines, | ||||||
| 26 | drugs, medical appliances, and insulin, urine
testing | ||||||
| |||||||
| |||||||
| 1 | materials, syringes, and needles used by diabetics, for human | ||||||
| 2 | use, when
purchased for use by a person receiving medical | ||||||
| 3 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
| 4 | resides in a licensed long-term care facility,
as defined in | ||||||
| 5 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 6 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 7 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
| 8 | (24) Beginning on the effective date of this amendatory Act | ||||||
| 9 | of the 92nd
General Assembly, computers and communications | ||||||
| 10 | equipment
utilized for any hospital purpose and equipment used | ||||||
| 11 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
| 12 | purchased by a lessor who leases
the equipment, under a lease | ||||||
| 13 | of one year or longer executed or in effect at the
time the | ||||||
| 14 | lessor would otherwise be subject to the tax imposed by this | ||||||
| 15 | Act, to a
hospital that has been issued an active tax exemption | ||||||
| 16 | identification number by
the Department under Section 1g of the | ||||||
| 17 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
| 18 | manner that does not qualify for this exemption or is
used in | ||||||
| 19 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
| 20 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
| 21 | be, based on the
fair market value of the property at the time | ||||||
| 22 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
| 23 | attempt to collect an amount (however
designated) that purports | ||||||
| 24 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
| 25 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
| 26 | the lessor. If a lessor improperly collects any such amount | ||||||
| |||||||
| |||||||
| 1 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
| 2 | refund of that amount
from the lessor. If, however, that amount | ||||||
| 3 | is not refunded to the lessee for
any reason, the lessor is | ||||||
| 4 | liable to pay that amount to the Department.
This paragraph is | ||||||
| 5 | exempt from the provisions of Section 3-75.
| ||||||
| 6 | (25) Beginning
on the effective date of this amendatory Act | ||||||
| 7 | of the 92nd General Assembly,
personal property purchased by a | ||||||
| 8 | lessor
who leases the property, under a lease of one year or | ||||||
| 9 | longer executed or in
effect at the time the lessor would | ||||||
| 10 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
| 11 | governmental body that has been issued an active tax exemption
| ||||||
| 12 | identification number by the Department under Section 1g of the | ||||||
| 13 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
| 14 | manner that does not
qualify for this exemption or is used in | ||||||
| 15 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
| 16 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
| 17 | be, based on the fair market value of the property at the time
| ||||||
| 18 | the nonqualifying use occurs. No lessor shall collect or | ||||||
| 19 | attempt to collect
an amount (however designated) that purports | ||||||
| 20 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
| 21 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
| 22 | the lessor. If a lessor improperly collects any such amount
| ||||||
| 23 | from the lessee, the lessee shall have a legal right to claim a | ||||||
| 24 | refund of that
amount from the lessor. If, however, that amount | ||||||
| 25 | is not refunded to the lessee
for any reason, the lessor is | ||||||
| 26 | liable to pay that amount to the Department.
This paragraph is | ||||||
| |||||||
| |||||||
| 1 | exempt from the provisions of Section 3-75.
| ||||||
| 2 | (26) Beginning January 1, 2008, tangible personal property | ||||||
| 3 | used in the construction or maintenance of a community water | ||||||
| 4 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 5 | Protection Act, that is operated by a not-for-profit | ||||||
| 6 | corporation that holds a valid water supply permit issued under | ||||||
| 7 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
| 8 | exempt from the provisions of Section 3-75.
| ||||||
| 9 | (27) Beginning January 1, 2010, materials, parts, | ||||||
| 10 | equipment, components, and furnishings incorporated into or | ||||||
| 11 | upon an aircraft as part of the modification, refurbishment, | ||||||
| 12 | completion, replacement, repair, or maintenance of the | ||||||
| 13 | aircraft. This exemption includes consumable supplies used in | ||||||
| 14 | the modification, refurbishment, completion, replacement, | ||||||
| 15 | repair, and maintenance of aircraft, but excludes any | ||||||
| 16 | materials, parts, equipment, components, and consumable | ||||||
| 17 | supplies used in the modification, replacement, repair, and | ||||||
| 18 | maintenance of aircraft engines or power plants, whether such | ||||||
| 19 | engines or power plants are installed or uninstalled upon any | ||||||
| 20 | such aircraft. "Consumable supplies" include, but are not | ||||||
| 21 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
| 22 | lubricants, cleaning solution, latex gloves, and protective | ||||||
| 23 | films. This exemption applies only to the use of qualifying | ||||||
| 24 | tangible personal property transferred incident to the | ||||||
| 25 | modification, refurbishment, completion, replacement, repair, | ||||||
| 26 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
| |||||||
| |||||||
| 1 | Agency Certificate and are empowered to operate an approved | ||||||
| 2 | repair station by the Federal Aviation Administration, (ii) | ||||||
| 3 | have a Class IV Rating, and (iii) conduct operations in | ||||||
| 4 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
| 5 | The exemption does not include aircraft operated by a | ||||||
| 6 | commercial air carrier providing scheduled passenger air | ||||||
| 7 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
| 8 | of the Federal Aviation Regulations. The changes made to this | ||||||
| 9 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
| 10 | law. | ||||||
| 11 | (28) Tangible personal property purchased by a | ||||||
| 12 | public-facilities corporation, as described in Section | ||||||
| 13 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 14 | constructing or furnishing a municipal convention hall, but | ||||||
| 15 | only if the legal title to the municipal convention hall is | ||||||
| 16 | transferred to the municipality without any further | ||||||
| 17 | consideration by or on behalf of the municipality at the time | ||||||
| 18 | of the completion of the municipal convention hall or upon the | ||||||
| 19 | retirement or redemption of any bonds or other debt instruments | ||||||
| 20 | issued by the public-facilities corporation in connection with | ||||||
| 21 | the development of the municipal convention hall. This | ||||||
| 22 | exemption includes existing public-facilities corporations as | ||||||
| 23 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
| 24 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
| 25 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
| 26 | and menstrual cups. | ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
| 2 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18.)
| ||||||
| 3 | Section 160. The Service Occupation Tax Act is amended by | ||||||
| 4 | changing Sections 2 and 3-5 as follows:
| ||||||
| 5 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
| 6 | Sec. 2. In this Act: | ||||||
| 7 | "Transfer" means any transfer of the title to property or | ||||||
| 8 | of
the ownership of property whether or not the transferor | ||||||
| 9 | retains title as
security for the payment of amounts due him | ||||||
| 10 | from the transferee.
| ||||||
| 11 | "Cost Price" means the consideration paid by the serviceman | ||||||
| 12 | for a
purchase valued in money, whether paid in money or | ||||||
| 13 | otherwise, including
cash, credits and services, and shall be | ||||||
| 14 | determined without any deduction
on account of the supplier's | ||||||
| 15 | cost of the property sold or on account of any
other expense | ||||||
| 16 | incurred by the supplier. When a serviceman contracts out
part | ||||||
| 17 | or all of the services required in his sale of service, it | ||||||
| 18 | shall be
presumed that the cost price to the serviceman of the | ||||||
| 19 | property
transferred to him by his or her subcontractor is | ||||||
| 20 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
| 21 | in the absence of proof of the
consideration paid by the | ||||||
| 22 | subcontractor for the purchase of such
property.
| ||||||
| 23 | "Department" means the Department of Revenue.
| ||||||
| 24 | "Person" means any natural individual, firm, partnership, | ||||||
| |||||||
| |||||||
| 1 | association, joint
stock company, joint venture, public or | ||||||
| 2 | private corporation, limited liability
company, and any | ||||||
| 3 | receiver, executor, trustee, guardian or other representative
| ||||||
| 4 | appointed by order of any court.
| ||||||
| 5 | "Sale of Service" means any transaction except:
| ||||||
| 6 | (a) A retail sale of tangible personal property taxable | ||||||
| 7 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
| 8 | Act.
| ||||||
| 9 | (b) A sale of tangible personal property for the purpose of | ||||||
| 10 | resale made in
compliance with Section 2c of the Retailers' | ||||||
| 11 | Occupation Tax Act.
| ||||||
| 12 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
| 13 | tangible personal
property as an incident to the rendering of | ||||||
| 14 | service for or by any governmental
body or for or by any | ||||||
| 15 | corporation, society, association, foundation or
institution | ||||||
| 16 | organized and operated exclusively for charitable, religious | ||||||
| 17 | or
educational purposes or any not-for-profit corporation, | ||||||
| 18 | society, association,
foundation, institution or organization | ||||||
| 19 | which has no compensated officers or
employees and which is | ||||||
| 20 | organized and operated primarily for the recreation of
persons | ||||||
| 21 | 55 years of age or older. A limited liability company may | ||||||
| 22 | qualify for
the exemption under this paragraph only if the | ||||||
| 23 | limited liability company is
organized and operated | ||||||
| 24 | exclusively for educational purposes.
| ||||||
| 25 | (d) (Blank).
| ||||||
| 26 | (d-1) A sale or transfer of tangible personal
property as | ||||||
| |||||||
| |||||||
| 1 | an incident to
the rendering of service for owners, lessors or | ||||||
| 2 | shippers of tangible personal
property which is utilized by | ||||||
| 3 | interstate carriers for hire for use as rolling
stock moving in | ||||||
| 4 | interstate commerce, and equipment operated
by a | ||||||
| 5 | telecommunications provider, licensed as a common carrier by | ||||||
| 6 | the
Federal Communications Commission, which is permanently | ||||||
| 7 | installed in or
affixed to aircraft moving in interstate | ||||||
| 8 | commerce.
| ||||||
| 9 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
| 10 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
| 11 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
| 12 | as an
incident to the rendering of service if that motor
| ||||||
| 13 | vehicle is subject
to the commercial distribution fee imposed | ||||||
| 14 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
| 15 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
| 16 | State of motor vehicles of the second division: (i) with a | ||||||
| 17 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
| 18 | that are subject to the commercial distribution fee imposed | ||||||
| 19 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
| 20 | that are primarily used for commercial purposes. Through June | ||||||
| 21 | 30, 2005, this exemption applies to repair and replacement | ||||||
| 22 | parts added after the
initial
purchase of such a motor vehicle | ||||||
| 23 | if that motor vehicle is used in a manner that
would
qualify | ||||||
| 24 | for the rolling stock exemption otherwise provided for in this | ||||||
| 25 | Act. For purposes of this paragraph, "used for commercial | ||||||
| 26 | purposes" means the transportation of persons or property in | ||||||
| |||||||
| |||||||
| 1 | furtherance of any commercial or industrial enterprise whether | ||||||
| 2 | for-hire or not.
| ||||||
| 3 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
| 4 | common carrier by
rail, of tangible personal property which | ||||||
| 5 | belongs to such carrier for hire, and
as to which such carrier | ||||||
| 6 | receives the physical possession of the repaired,
| ||||||
| 7 | reconditioned or remodeled item of tangible personal property | ||||||
| 8 | in Illinois, and
which such carrier transports, or shares with | ||||||
| 9 | another common carrier in the
transportation of such property, | ||||||
| 10 | out of Illinois on a standard uniform bill of
lading showing | ||||||
| 11 | the person who repaired, reconditioned or remodeled the | ||||||
| 12 | property
as the shipper or consignor of such property to a | ||||||
| 13 | destination outside Illinois,
for use outside Illinois.
| ||||||
| 14 | (d-3) A sale or transfer of tangible personal property | ||||||
| 15 | which
is produced by the seller thereof on special order in | ||||||
| 16 | such a way as to have
made the applicable tax the Service | ||||||
| 17 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
| 18 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
| 19 | carrier by rail which receives the physical possession of such | ||||||
| 20 | property in
Illinois, and which transports such property, or | ||||||
| 21 | shares with another common
carrier in the transportation of | ||||||
| 22 | such property, out of Illinois on a standard
uniform bill of | ||||||
| 23 | lading showing the seller of the property as the shipper or
| ||||||
| 24 | consignor of such property to a destination outside Illinois, | ||||||
| 25 | for use outside
Illinois.
| ||||||
| 26 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
| |||||||
| |||||||
| 1 | serviceman paying tax
under this Act to the Department, of | ||||||
| 2 | special order printed materials delivered
outside Illinois and | ||||||
| 3 | which are not returned to this State, if delivery is made
by | ||||||
| 4 | the seller or agent of the seller, including an agent who | ||||||
| 5 | causes the product
to be delivered outside Illinois by a common | ||||||
| 6 | carrier or the U.S.
postal service.
| ||||||
| 7 | (e) A sale or transfer of machinery and equipment used | ||||||
| 8 | primarily in
the process of the manufacturing or assembling, | ||||||
| 9 | either in an existing, an
expanded or a new manufacturing | ||||||
| 10 | facility, of tangible personal property for
wholesale or retail | ||||||
| 11 | sale or lease, whether such sale or lease is made directly
by | ||||||
| 12 | the manufacturer or by some other person, whether the materials | ||||||
| 13 | used in the
process are owned by the manufacturer or some other | ||||||
| 14 | person, or whether such
sale or lease is made apart from or as | ||||||
| 15 | an incident to the seller's engaging in
a service occupation | ||||||
| 16 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
| 17 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
| 18 | exemption provided by this paragraph (e) does not include | ||||||
| 19 | machinery and equipment used in (i) the generation of | ||||||
| 20 | electricity for wholesale or retail sale; (ii) the generation | ||||||
| 21 | or treatment of natural or artificial gas for wholesale or | ||||||
| 22 | retail sale that is delivered to customers through pipes, | ||||||
| 23 | pipelines, or mains; or (iii) the treatment of water for | ||||||
| 24 | wholesale or retail sale that is delivered to customers through | ||||||
| 25 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
| 26 | are declaratory of existing law as to the meaning and scope of | ||||||
| |||||||
| |||||||
| 1 | this exemption. The exemption under this subsection (e) is | ||||||
| 2 | exempt from the provisions of Section 3-75.
| ||||||
| 3 | (f) Until July 1, 2003, the sale or transfer of | ||||||
| 4 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
| 5 | assembled or installed by the retailer, which machinery
and | ||||||
| 6 | equipment is certified by the user to be used only for the | ||||||
| 7 | production
of ethyl alcohol that will be used for consumption | ||||||
| 8 | as motor fuel or as a
component of motor fuel for the personal | ||||||
| 9 | use of such user and not subject
to sale or resale.
| ||||||
| 10 | (g) At the election of any serviceman not required to be | ||||||
| 11 | otherwise
registered as a retailer under Section 2a of the | ||||||
| 12 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
| 13 | of service in which the aggregate annual cost
price of tangible | ||||||
| 14 | personal property transferred as an incident to the sales of
| ||||||
| 15 | service is less than 35% (75% in the case of servicemen | ||||||
| 16 | transferring
prescription drugs or servicemen engaged in | ||||||
| 17 | graphic arts production) of the
aggregate annual total gross | ||||||
| 18 | receipts from all sales of service. The purchase
of such | ||||||
| 19 | tangible personal property by the serviceman shall be subject | ||||||
| 20 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
| 21 | Act.
However, if a
primary serviceman who has made the election | ||||||
| 22 | described in this paragraph
subcontracts service work to a | ||||||
| 23 | secondary serviceman who has also made the
election described | ||||||
| 24 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
| 25 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
| 26 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
| |||||||
| |||||||
| 1 | property transferred
to the primary serviceman and (ii) | ||||||
| 2 | certifies that fact in writing to the
primary serviceman.
| ||||||
| 3 | Tangible personal property transferred incident to the | ||||||
| 4 | completion of a
maintenance agreement is exempt from the tax | ||||||
| 5 | imposed pursuant to this Act.
| ||||||
| 6 | Exemption (e) also includes machinery and equipment used in | ||||||
| 7 | the
general maintenance or repair of such exempt machinery and | ||||||
| 8 | equipment or for
in-house manufacture of exempt machinery and | ||||||
| 9 | equipment.
On and after July 1, 2017 and until July 1, 2019, | ||||||
| 10 | exemption (e) also
includes graphic arts machinery and | ||||||
| 11 | equipment, as
defined in paragraph (5) of Section 3-5. The | ||||||
| 12 | machinery and equipment exemption does not include machinery | ||||||
| 13 | and equipment used in (i) the generation of electricity for | ||||||
| 14 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
| 15 | natural or artificial gas for wholesale or retail sale that is | ||||||
| 16 | delivered to customers through pipes, pipelines, or mains; or | ||||||
| 17 | (iii) the treatment of water for wholesale or retail sale that | ||||||
| 18 | is delivered to customers through pipes, pipelines, or mains. | ||||||
| 19 | The provisions of Public Act 98-583 are declaratory of existing | ||||||
| 20 | law as to the meaning and scope of this exemption. For the | ||||||
| 21 | purposes of exemption (e), each of these terms shall have the | ||||||
| 22 | following
meanings: (1) "manufacturing process" shall mean the | ||||||
| 23 | production of any
article of tangible personal property, | ||||||
| 24 | whether such article is a
finished product or an article for | ||||||
| 25 | use in the process of manufacturing
or assembling a different | ||||||
| 26 | article of tangible personal property, by
procedures commonly | ||||||
| |||||||
| |||||||
| 1 | regarded as manufacturing, processing, fabricating,
or | ||||||
| 2 | refining which changes some existing material or materials into | ||||||
| 3 | a
material with a different form, use or name. In relation to a
| ||||||
| 4 | recognized integrated business composed of a series of | ||||||
| 5 | operations which
collectively constitute manufacturing, or | ||||||
| 6 | individually constitute
manufacturing operations, the | ||||||
| 7 | manufacturing process shall be deemed to
commence with the | ||||||
| 8 | first operation or stage of production in the series,
and shall | ||||||
| 9 | not be deemed to end until the completion of the final product
| ||||||
| 10 | in the last operation or stage of production in the series; and | ||||||
| 11 | further for
purposes of exemption (e), photoprocessing is | ||||||
| 12 | deemed to be a manufacturing
process of tangible personal | ||||||
| 13 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
| 14 | shall mean the production of any article of
tangible personal | ||||||
| 15 | property, whether such article is a finished product
or an | ||||||
| 16 | article for use in the process of manufacturing or assembling a
| ||||||
| 17 | different article of tangible personal property, by the | ||||||
| 18 | combination of
existing materials in a manner commonly regarded | ||||||
| 19 | as assembling which
results in a material of a different form, | ||||||
| 20 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
| 21 | machines or major components of such machines
contributing to a | ||||||
| 22 | manufacturing or assembling process; and (4) "equipment"
shall | ||||||
| 23 | include any independent device or tool separate from any | ||||||
| 24 | machinery but
essential to an integrated manufacturing or | ||||||
| 25 | assembly process; including
computers used primarily in a | ||||||
| 26 | manufacturer's computer
assisted design, computer assisted | ||||||
| |||||||
| |||||||
| 1 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
| 2 | comprising a component of any machinery or auxiliary,
adjunct | ||||||
| 3 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
| 4 | fixtures,
patterns and molds; or any parts which require | ||||||
| 5 | periodic replacement in the
course of normal operation; but | ||||||
| 6 | shall not include hand tools. Equipment
includes chemicals or | ||||||
| 7 | chemicals acting as catalysts but only if the chemicals
or | ||||||
| 8 | chemicals acting as catalysts effect a direct and immediate | ||||||
| 9 | change upon a
product being manufactured or assembled for | ||||||
| 10 | wholesale or retail sale or lease.
The purchaser of such | ||||||
| 11 | machinery and equipment
who has an active resale registration | ||||||
| 12 | number shall furnish such number to
the seller at the time of | ||||||
| 13 | purchase. The purchaser of such machinery and
equipment and | ||||||
| 14 | tools without an active resale registration number shall | ||||||
| 15 | furnish
to the seller a certificate of exemption for each | ||||||
| 16 | transaction stating facts
establishing the exemption for that | ||||||
| 17 | transaction, which certificate shall
be available to the | ||||||
| 18 | Department for inspection or audit.
| ||||||
| 19 | Except as provided in Section 2d of this Act, the rolling | ||||||
| 20 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
| 21 | carrier for hire, even just between points in Illinois, if such | ||||||
| 22 | rolling
stock transports, for hire, persons whose journeys or | ||||||
| 23 | property whose
shipments originate or terminate outside | ||||||
| 24 | Illinois.
| ||||||
| 25 | Any informal rulings, opinions or letters issued by the | ||||||
| 26 | Department in
response to an inquiry or request for any opinion | ||||||
| |||||||
| |||||||
| 1 | from any person
regarding the coverage and applicability of | ||||||
| 2 | exemption (e) to specific
devices shall be published, | ||||||
| 3 | maintained as a public record, and made
available for public | ||||||
| 4 | inspection and copying. If the informal ruling,
opinion or | ||||||
| 5 | letter contains trade secrets or other confidential
| ||||||
| 6 | information, where possible the Department shall delete such | ||||||
| 7 | information
prior to publication. Whenever such informal | ||||||
| 8 | rulings, opinions, or
letters contain any policy of general | ||||||
| 9 | applicability, the Department
shall formulate and adopt such | ||||||
| 10 | policy as a rule in accordance with the
provisions of the | ||||||
| 11 | Illinois Administrative Procedure Act.
| ||||||
| 12 | On and after July 1, 1987, no entity otherwise eligible | ||||||
| 13 | under exemption
(c) of this Section shall make tax-free | ||||||
| 14 | purchases unless it has an active
exemption identification | ||||||
| 15 | number issued by the Department.
| ||||||
| 16 | "Serviceman" means any person who is engaged in the | ||||||
| 17 | occupation of
making sales of service.
| ||||||
| 18 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
| 19 | Retailers'
Occupation Tax Act.
| ||||||
| 20 | "Supplier" means any person who makes sales of tangible | ||||||
| 21 | personal
property to servicemen for the purpose of resale as an | ||||||
| 22 | incident to a
sale of service.
| ||||||
| 23 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
| 24 | 100-863, eff. 8-14-18.)
| ||||||
| 25 | (35 ILCS 115/3-5)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
| 2 | property is
exempt from the tax imposed by this Act:
| ||||||
| 3 | (1) Personal property sold by a corporation, society, | ||||||
| 4 | association,
foundation, institution, or organization, other | ||||||
| 5 | than a limited liability
company, that is organized and | ||||||
| 6 | operated as a not-for-profit service enterprise
for the benefit | ||||||
| 7 | of persons 65 years of age or older if the personal property
| ||||||
| 8 | was not purchased by the enterprise for the purpose of resale | ||||||
| 9 | by the
enterprise.
| ||||||
| 10 | (2) Personal property purchased by a not-for-profit | ||||||
| 11 | Illinois county fair
association for use in conducting, | ||||||
| 12 | operating, or promoting the county fair.
| ||||||
| 13 | (3) Personal property purchased by any not-for-profit
arts | ||||||
| 14 | or cultural organization that establishes, by proof required by | ||||||
| 15 | the
Department by
rule, that it has received an exemption under | ||||||
| 16 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
| 17 | organized and operated primarily for the
presentation
or | ||||||
| 18 | support of arts or cultural programming, activities, or | ||||||
| 19 | services. These
organizations include, but are not limited to, | ||||||
| 20 | music and dramatic arts
organizations such as symphony | ||||||
| 21 | orchestras and theatrical groups, arts and
cultural service | ||||||
| 22 | organizations, local arts councils, visual arts organizations,
| ||||||
| 23 | and media arts organizations.
On and after the effective date | ||||||
| 24 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
| 25 | an entity otherwise eligible for this exemption shall not
make | ||||||
| 26 | tax-free purchases unless it has an active identification | ||||||
| |||||||
| |||||||
| 1 | number issued by
the Department.
| ||||||
| 2 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
| 3 | coinage
issued by the State of Illinois, the government of the | ||||||
| 4 | United States of
America, or the government of any foreign | ||||||
| 5 | country, and bullion.
| ||||||
| 6 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
| 7 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 8 | equipment, including
repair and
replacement parts, both new and | ||||||
| 9 | used, and including that manufactured on
special order or | ||||||
| 10 | purchased for lease, certified by the purchaser to be used
| ||||||
| 11 | primarily for graphic arts production.
Equipment includes | ||||||
| 12 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
| 13 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
| 14 | immediate change
upon a graphic arts product. Beginning on July | ||||||
| 15 | 1, 2017 and until July 1, 2019, graphic arts machinery and | ||||||
| 16 | equipment is included in the manufacturing and assembling | ||||||
| 17 | machinery and equipment exemption under Section 2 of this Act.
| ||||||
| 18 | (6) Personal property sold by a teacher-sponsored student | ||||||
| 19 | organization
affiliated with an elementary or secondary school | ||||||
| 20 | located in Illinois.
| ||||||
| 21 | (7) Farm machinery and equipment, both new and used, | ||||||
| 22 | including that
manufactured on special order, certified by the | ||||||
| 23 | purchaser to be used
primarily for production agriculture or | ||||||
| 24 | State or federal agricultural
programs, including individual | ||||||
| 25 | replacement parts for the machinery and
equipment, including | ||||||
| 26 | machinery and equipment purchased for lease,
and including | ||||||
| |||||||
| |||||||
| 1 | implements of husbandry defined in Section 1-130 of
the | ||||||
| 2 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 3 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
| 4 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
| 5 | but
excluding other motor vehicles required to be registered | ||||||
| 6 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
| 7 | hoop houses used for propagating, growing, or
overwintering | ||||||
| 8 | plants shall be considered farm machinery and equipment under
| ||||||
| 9 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
| 10 | shall include units sold
separately from a motor vehicle | ||||||
| 11 | required to be licensed and units sold mounted
on a motor | ||||||
| 12 | vehicle required to be licensed if the selling price of the | ||||||
| 13 | tender
is separately stated.
| ||||||
| 14 | Farm machinery and equipment shall include precision | ||||||
| 15 | farming equipment
that is
installed or purchased to be | ||||||
| 16 | installed on farm machinery and equipment
including, but not | ||||||
| 17 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
| 18 | or spreaders.
Precision farming equipment includes, but is not | ||||||
| 19 | limited to,
soil testing sensors, computers, monitors, | ||||||
| 20 | software, global positioning
and mapping systems, and other | ||||||
| 21 | such equipment.
| ||||||
| 22 | Farm machinery and equipment also includes computers, | ||||||
| 23 | sensors, software, and
related equipment used primarily in the
| ||||||
| 24 | computer-assisted operation of production agriculture | ||||||
| 25 | facilities, equipment,
and activities such as, but
not limited | ||||||
| 26 | to,
the collection, monitoring, and correlation of
animal and | ||||||
| |||||||
| |||||||
| 1 | crop data for the purpose of
formulating animal diets and | ||||||
| 2 | agricultural chemicals. This item (7) is exempt
from the | ||||||
| 3 | provisions of
Section 3-55.
| ||||||
| 4 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
| 5 | to or used by an air common
carrier, certified by the carrier | ||||||
| 6 | to be used for consumption, shipment,
or storage in the conduct | ||||||
| 7 | of its business as an air common carrier, for
a flight destined | ||||||
| 8 | for or returning from a location or locations
outside the | ||||||
| 9 | United States without regard to previous or subsequent domestic
| ||||||
| 10 | stopovers.
| ||||||
| 11 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
| 12 | or used by an air carrier, certified by the carrier to be used | ||||||
| 13 | for consumption, shipment, or storage in the conduct of its | ||||||
| 14 | business as an air common carrier, for a flight that (i) is | ||||||
| 15 | engaged in foreign trade or is engaged in trade between the | ||||||
| 16 | United States and any of its possessions and (ii) transports at | ||||||
| 17 | least one individual or package for hire from the city of | ||||||
| 18 | origination to the city of final destination on the same | ||||||
| 19 | aircraft, without regard to a change in the flight number of | ||||||
| 20 | that aircraft. | ||||||
| 21 | (9) Proceeds of mandatory service charges separately
| ||||||
| 22 | stated on customers' bills for the purchase and consumption of | ||||||
| 23 | food and
beverages, to the extent that the proceeds of the | ||||||
| 24 | service charge are in fact
turned over as tips or as a | ||||||
| 25 | substitute for tips to the employees who
participate directly | ||||||
| 26 | in preparing, serving, hosting or cleaning up the
food or | ||||||
| |||||||
| |||||||
| 1 | beverage function with respect to which the service charge is | ||||||
| 2 | imposed.
| ||||||
| 3 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
| 4 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
| 5 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
| 6 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
| 7 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
| 8 | individual replacement part for oil field exploration,
| ||||||
| 9 | drilling, and production equipment, and (vi) machinery and | ||||||
| 10 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
| 11 | required to be registered under the Illinois
Vehicle Code.
| ||||||
| 12 | (11) Photoprocessing machinery and equipment, including | ||||||
| 13 | repair and
replacement parts, both new and used, including that | ||||||
| 14 | manufactured on
special order, certified by the purchaser to be | ||||||
| 15 | used primarily for
photoprocessing, and including | ||||||
| 16 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
| 17 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
| 18 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
| 19 | reclamation equipment, including
replacement parts and | ||||||
| 20 | equipment, and including
equipment
purchased for lease, but | ||||||
| 21 | excluding motor vehicles required to be registered
under the | ||||||
| 22 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 23 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 24 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| 25 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
| 26 | during the period beginning July 1, 2003 and ending on August | ||||||
| |||||||
| |||||||
| 1 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
| 2 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
| 3 | food for human consumption that is to be consumed off the | ||||||
| 4 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
| 5 | drinks and food that
has been prepared for immediate | ||||||
| 6 | consumption) and prescription and
non-prescription medicines, | ||||||
| 7 | drugs, medical appliances, and insulin, urine
testing | ||||||
| 8 | materials, syringes, and needles used by diabetics, for human | ||||||
| 9 | use,
when purchased for use by a person receiving medical | ||||||
| 10 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
| 11 | resides in a licensed
long-term care facility, as defined in | ||||||
| 12 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 13 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 14 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
| 15 | (14) Semen used for artificial insemination of livestock | ||||||
| 16 | for direct
agricultural production.
| ||||||
| 17 | (15) Horses, or interests in horses, registered with and | ||||||
| 18 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
| 19 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
| 20 | Horse Association, United States
Trotting Association, or | ||||||
| 21 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
| 22 | racing for prizes. This item (15) is exempt from the provisions | ||||||
| 23 | of Section 3-55, and the exemption provided for under this item | ||||||
| 24 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
| 25 | claim for credit or refund is allowed on or after January 1, | ||||||
| 26 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
| |||||||
| |||||||
| 1 | paid during the period beginning May 30, 2000 and ending on | ||||||
| 2 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
| 3 | (16) Computers and communications equipment utilized for | ||||||
| 4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
| 5 | analysis, or treatment of hospital patients sold to a lessor | ||||||
| 6 | who leases the
equipment, under a lease of one year or longer | ||||||
| 7 | executed or in effect at the
time of the purchase, to a
| ||||||
| 8 | hospital
that has been issued an active tax exemption | ||||||
| 9 | identification number by the
Department under Section 1g of the | ||||||
| 10 | Retailers' Occupation Tax Act.
| ||||||
| 11 | (17) Personal property sold to a lessor who leases the
| ||||||
| 12 | property, under a
lease of one year or longer executed or in | ||||||
| 13 | effect at the time of the purchase,
to a governmental body
that | ||||||
| 14 | has been issued an active tax exemption identification number | ||||||
| 15 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
| 16 | Tax Act.
| ||||||
| 17 | (18) Beginning with taxable years ending on or after | ||||||
| 18 | December
31, 1995
and
ending with taxable years ending on or | ||||||
| 19 | before December 31, 2004,
personal property that is
donated for | ||||||
| 20 | disaster relief to be used in a State or federally declared
| ||||||
| 21 | disaster area in Illinois or bordering Illinois by a | ||||||
| 22 | manufacturer or retailer
that is registered in this State to a | ||||||
| 23 | corporation, society, association,
foundation, or institution | ||||||
| 24 | that has been issued a sales tax exemption
identification | ||||||
| 25 | number by the Department that assists victims of the disaster
| ||||||
| 26 | who reside within the declared disaster area.
| ||||||
| |||||||
| |||||||
| 1 | (19) Beginning with taxable years ending on or after | ||||||
| 2 | December
31, 1995 and
ending with taxable years ending on or | ||||||
| 3 | before December 31, 2004, personal
property that is used in the | ||||||
| 4 | performance of infrastructure repairs in this
State, including | ||||||
| 5 | but not limited to municipal roads and streets, access roads,
| ||||||
| 6 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
| 7 | line extensions,
water distribution and purification | ||||||
| 8 | facilities, storm water drainage and
retention facilities, and | ||||||
| 9 | sewage treatment facilities, resulting from a State
or | ||||||
| 10 | federally declared disaster in Illinois or bordering Illinois | ||||||
| 11 | when such
repairs are initiated on facilities located in the | ||||||
| 12 | declared disaster area
within 6 months after the disaster.
| ||||||
| 13 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
| 14 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
| 15 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
| 16 | provisions
of
Section 3-55.
| ||||||
| 17 | (21) A motor vehicle, as that term is defined in Section | ||||||
| 18 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
| 19 | corporation, limited liability
company, society, association, | ||||||
| 20 | foundation, or institution that is determined by
the Department | ||||||
| 21 | to be organized and operated exclusively for educational
| ||||||
| 22 | purposes. For purposes of this exemption, "a corporation, | ||||||
| 23 | limited liability
company, society, association, foundation, | ||||||
| 24 | or institution organized and
operated
exclusively for | ||||||
| 25 | educational purposes" means all tax-supported public schools,
| ||||||
| 26 | private schools that offer systematic instruction in useful | ||||||
| |||||||
| |||||||
| 1 | branches of
learning by methods common to public schools and | ||||||
| 2 | that compare favorably in
their scope and intensity with the | ||||||
| 3 | course of study presented in tax-supported
schools, and | ||||||
| 4 | vocational or technical schools or institutes organized and
| ||||||
| 5 | operated exclusively to provide a course of study of not less | ||||||
| 6 | than 6 weeks
duration and designed to prepare individuals to | ||||||
| 7 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
| 8 | industrial, business, or commercial
occupation.
| ||||||
| 9 | (22) Beginning January 1, 2000, personal property, | ||||||
| 10 | including
food,
purchased through fundraising
events for the | ||||||
| 11 | benefit of
a public or private elementary or
secondary school, | ||||||
| 12 | a group of those schools, or one or more school
districts if | ||||||
| 13 | the events are
sponsored by an entity recognized by the school | ||||||
| 14 | district that consists
primarily of volunteers and includes
| ||||||
| 15 | parents and teachers of the school children. This paragraph | ||||||
| 16 | does not apply
to fundraising
events (i) for the benefit of | ||||||
| 17 | private home instruction or (ii)
for which the fundraising | ||||||
| 18 | entity purchases the personal property sold at
the events from | ||||||
| 19 | another individual or entity that sold the property for the
| ||||||
| 20 | purpose of resale by the fundraising entity and that
profits | ||||||
| 21 | from the sale to the
fundraising entity. This paragraph is | ||||||
| 22 | exempt
from the provisions
of Section 3-55.
| ||||||
| 23 | (23) Beginning January 1, 2000
and through December 31, | ||||||
| 24 | 2001, new or used automatic vending
machines that prepare and | ||||||
| 25 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
| 26 | items, and replacement parts for these machines.
Beginning | ||||||
| |||||||
| |||||||
| 1 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
| 2 | for
machines used in commercial, coin-operated amusement
and | ||||||
| 3 | vending business if a use or occupation tax is paid on the | ||||||
| 4 | gross receipts
derived from
the use of the commercial, | ||||||
| 5 | coin-operated amusement and vending machines.
This paragraph | ||||||
| 6 | is exempt from the provisions of Section 3-55.
| ||||||
| 7 | (24) Beginning
on the effective date of this amendatory Act | ||||||
| 8 | of the 92nd General Assembly,
computers and communications | ||||||
| 9 | equipment
utilized for any hospital purpose and equipment used | ||||||
| 10 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
| 11 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
| 12 | year or longer executed or in effect at the
time of the | ||||||
| 13 | purchase, to a hospital that has been issued an active tax
| ||||||
| 14 | exemption identification number by the Department under | ||||||
| 15 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
| 16 | is exempt from the provisions of
Section 3-55.
| ||||||
| 17 | (25) Beginning
on the effective date of this amendatory Act | ||||||
| 18 | of the 92nd General Assembly,
personal property sold to a | ||||||
| 19 | lessor who
leases the property, under a lease of one year or | ||||||
| 20 | longer executed or in effect
at the time of the purchase, to a | ||||||
| 21 | governmental body that has been issued an
active tax exemption | ||||||
| 22 | identification number by the Department under Section 1g
of the | ||||||
| 23 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
| 24 | the
provisions of Section 3-55.
| ||||||
| 25 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
| 26 | 2016, tangible personal property
purchased
from an Illinois | ||||||
| |||||||
| |||||||
| 1 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
| 2 | activities in Illinois who will, upon receipt of the property | ||||||
| 3 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
| 4 | the purpose of subsequently
transporting it outside this State | ||||||
| 5 | for use or consumption thereafter solely
outside this State or | ||||||
| 6 | (ii) for the purpose of being processed, fabricated, or
| ||||||
| 7 | manufactured into, attached to, or incorporated into other | ||||||
| 8 | tangible personal
property to be transported outside this State | ||||||
| 9 | and thereafter used or consumed
solely outside this State. The | ||||||
| 10 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
| 11 | accordance with the Illinois Administrative Procedure Act, | ||||||
| 12 | issue a
permit to any taxpayer in good standing with the | ||||||
| 13 | Department who is eligible for
the exemption under this | ||||||
| 14 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
| 15 | shall authorize the holder, to the extent and
in the manner | ||||||
| 16 | specified in the rules adopted under this Act, to purchase
| ||||||
| 17 | tangible personal property from a retailer exempt from the | ||||||
| 18 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
| 19 | necessary books and records to
substantiate the use and | ||||||
| 20 | consumption of all such tangible personal property
outside of | ||||||
| 21 | the State of Illinois.
| ||||||
| 22 | (27) Beginning January 1, 2008, tangible personal property | ||||||
| 23 | used in the construction or maintenance of a community water | ||||||
| 24 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 25 | Protection Act, that is operated by a not-for-profit | ||||||
| 26 | corporation that holds a valid water supply permit issued under | ||||||
| |||||||
| |||||||
| 1 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
| 2 | exempt from the provisions of Section 3-55.
| ||||||
| 3 | (28) Tangible personal property sold to a | ||||||
| 4 | public-facilities corporation, as described in Section | ||||||
| 5 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 6 | constructing or furnishing a municipal convention hall, but | ||||||
| 7 | only if the legal title to the municipal convention hall is | ||||||
| 8 | transferred to the municipality without any further | ||||||
| 9 | consideration by or on behalf of the municipality at the time | ||||||
| 10 | of the completion of the municipal convention hall or upon the | ||||||
| 11 | retirement or redemption of any bonds or other debt instruments | ||||||
| 12 | issued by the public-facilities corporation in connection with | ||||||
| 13 | the development of the municipal convention hall. This | ||||||
| 14 | exemption includes existing public-facilities corporations as | ||||||
| 15 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
| 16 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
| 17 | (29) Beginning January 1, 2010, materials, parts, | ||||||
| 18 | equipment, components, and furnishings incorporated into or | ||||||
| 19 | upon an aircraft as part of the modification, refurbishment, | ||||||
| 20 | completion, replacement, repair, or maintenance of the | ||||||
| 21 | aircraft. This exemption includes consumable supplies used in | ||||||
| 22 | the modification, refurbishment, completion, replacement, | ||||||
| 23 | repair, and maintenance of aircraft, but excludes any | ||||||
| 24 | materials, parts, equipment, components, and consumable | ||||||
| 25 | supplies used in the modification, replacement, repair, and | ||||||
| 26 | maintenance of aircraft engines or power plants, whether such | ||||||
| |||||||
| |||||||
| 1 | engines or power plants are installed or uninstalled upon any | ||||||
| 2 | such aircraft. "Consumable supplies" include, but are not | ||||||
| 3 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
| 4 | lubricants, cleaning solution, latex gloves, and protective | ||||||
| 5 | films. This exemption applies only to the transfer of | ||||||
| 6 | qualifying tangible personal property incident to the | ||||||
| 7 | modification, refurbishment, completion, replacement, repair, | ||||||
| 8 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
| 9 | Agency Certificate and are empowered to operate an approved | ||||||
| 10 | repair station by the Federal Aviation Administration, (ii) | ||||||
| 11 | have a Class IV Rating, and (iii) conduct operations in | ||||||
| 12 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
| 13 | The exemption does not include aircraft operated by a | ||||||
| 14 | commercial air carrier providing scheduled passenger air | ||||||
| 15 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
| 16 | of the Federal Aviation Regulations. The changes made to this | ||||||
| 17 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
| 18 | law. | ||||||
| 19 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
| 20 | and menstrual cups. | ||||||
| 21 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
| 22 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18.)
| ||||||
| 23 | Section 165. The Retailers' Occupation Tax Act is amended | ||||||
| 24 | by changing Sections 2-5 and 2-45 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 120/2-5)
| ||||||
| 2 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
| 3 | sale of
the following tangible personal property are exempt | ||||||
| 4 | from the tax imposed
by this Act:
| ||||||
| 5 | (1) Farm chemicals.
| ||||||
| 6 | (2) Farm machinery and equipment, both new and used, | ||||||
| 7 | including that
manufactured on special order, certified by | ||||||
| 8 | the purchaser to be used
primarily for production | ||||||
| 9 | agriculture or State or federal agricultural
programs, | ||||||
| 10 | including individual replacement parts for the machinery | ||||||
| 11 | and
equipment, including machinery and equipment purchased | ||||||
| 12 | for lease,
and including implements of husbandry defined in | ||||||
| 13 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
| 14 | and agricultural chemical and
fertilizer spreaders, and | ||||||
| 15 | nurse wagons required to be registered
under Section 3-809 | ||||||
| 16 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
| 17 | vehicles required to be registered under the Illinois
| ||||||
| 18 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
| 19 | for propagating, growing, or
overwintering plants shall be | ||||||
| 20 | considered farm machinery and equipment under
this item | ||||||
| 21 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
| 22 | include units sold
separately from a motor vehicle required | ||||||
| 23 | to be licensed and units sold mounted
on a motor vehicle | ||||||
| 24 | required to be licensed, if the selling price of the tender
| ||||||
| 25 | is separately stated.
| ||||||
| 26 | Farm machinery and equipment shall include precision | ||||||
| |||||||
| |||||||
| 1 | farming equipment
that is
installed or purchased to be | ||||||
| 2 | installed on farm machinery and equipment
including, but | ||||||
| 3 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
| 4 | seeders, or spreaders.
Precision farming equipment | ||||||
| 5 | includes, but is not limited to,
soil testing sensors, | ||||||
| 6 | computers, monitors, software, global positioning
and | ||||||
| 7 | mapping systems, and other such equipment.
| ||||||
| 8 | Farm machinery and equipment also includes computers, | ||||||
| 9 | sensors, software, and
related equipment used primarily in | ||||||
| 10 | the
computer-assisted operation of production agriculture | ||||||
| 11 | facilities, equipment,
and activities such as, but
not | ||||||
| 12 | limited to,
the collection, monitoring, and correlation of
| ||||||
| 13 | animal and crop data for the purpose of
formulating animal | ||||||
| 14 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
| 15 | from the provisions of
Section 2-70.
| ||||||
| 16 | (3) Until July 1, 2003, distillation machinery and | ||||||
| 17 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
| 18 | the retailer, certified by the user to be used
only for the | ||||||
| 19 | production of ethyl alcohol that will be used for | ||||||
| 20 | consumption
as motor fuel or as a component of motor fuel | ||||||
| 21 | for the personal use of the
user, and not subject to sale | ||||||
| 22 | or resale.
| ||||||
| 23 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
| 24 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 25 | equipment, including
repair and
replacement parts, both | ||||||
| 26 | new and used, and including that manufactured on
special | ||||||
| |||||||
| |||||||
| 1 | order or purchased for lease, certified by the purchaser to | ||||||
| 2 | be used
primarily for graphic arts production.
Equipment | ||||||
| 3 | includes chemicals or
chemicals acting as catalysts but | ||||||
| 4 | only if
the chemicals or chemicals acting as catalysts | ||||||
| 5 | effect a direct and immediate
change upon a
graphic arts | ||||||
| 6 | product. Beginning on July 1, 2017 and until July 1, 2019, | ||||||
| 7 | graphic arts machinery and equipment is included in the | ||||||
| 8 | manufacturing and assembling machinery and equipment | ||||||
| 9 | exemption under paragraph (14).
| ||||||
| 10 | (5) A motor vehicle that is used for automobile | ||||||
| 11 | renting, as defined in the Automobile Renting Occupation | ||||||
| 12 | and Use Tax Act. This paragraph is exempt from
the | ||||||
| 13 | provisions of Section 2-70.
| ||||||
| 14 | (6) Personal property sold by a teacher-sponsored | ||||||
| 15 | student organization
affiliated with an elementary or | ||||||
| 16 | secondary school located in Illinois.
| ||||||
| 17 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
| 18 | selling price of
a passenger car the
sale of which is | ||||||
| 19 | subject to the Replacement Vehicle Tax.
| ||||||
| 20 | (8) Personal property sold to an Illinois county fair | ||||||
| 21 | association for
use in conducting, operating, or promoting | ||||||
| 22 | the county fair.
| ||||||
| 23 | (9) Personal property sold to a not-for-profit arts
or | ||||||
| 24 | cultural organization that establishes, by proof required | ||||||
| 25 | by the Department
by
rule, that it has received an | ||||||
| 26 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
| |||||||
| |||||||
| 1 | Code and that is organized and operated primarily for the
| ||||||
| 2 | presentation
or support of arts or cultural programming, | ||||||
| 3 | activities, or services. These
organizations include, but | ||||||
| 4 | are not limited to, music and dramatic arts
organizations | ||||||
| 5 | such as symphony orchestras and theatrical groups, arts and
| ||||||
| 6 | cultural service organizations, local arts councils, | ||||||
| 7 | visual arts organizations,
and media arts organizations.
| ||||||
| 8 | On and after July 1, 2001 (the effective date of Public Act | ||||||
| 9 | 92-35), however, an entity otherwise eligible for this | ||||||
| 10 | exemption shall not
make tax-free purchases unless it has | ||||||
| 11 | an active identification number issued by
the Department.
| ||||||
| 12 | (10) Personal property sold by a corporation, society, | ||||||
| 13 | association,
foundation, institution, or organization, | ||||||
| 14 | other than a limited liability
company, that is organized | ||||||
| 15 | and operated as a not-for-profit service enterprise
for the | ||||||
| 16 | benefit of persons 65 years of age or older if the personal | ||||||
| 17 | property
was not purchased by the enterprise for the | ||||||
| 18 | purpose of resale by the
enterprise.
| ||||||
| 19 | (11) Personal property sold to a governmental body, to | ||||||
| 20 | a corporation,
society, association, foundation, or | ||||||
| 21 | institution organized and operated
exclusively for | ||||||
| 22 | charitable, religious, or educational purposes, or to a
| ||||||
| 23 | not-for-profit corporation, society, association, | ||||||
| 24 | foundation, institution,
or organization that has no | ||||||
| 25 | compensated officers or employees and that is
organized and | ||||||
| 26 | operated primarily for the recreation of persons 55 years | ||||||
| |||||||
| |||||||
| 1 | of
age or older. A limited liability company may qualify | ||||||
| 2 | for the exemption under
this paragraph only if the limited | ||||||
| 3 | liability company is organized and operated
exclusively | ||||||
| 4 | for educational purposes. On and after July 1, 1987, | ||||||
| 5 | however, no
entity otherwise eligible for this exemption | ||||||
| 6 | shall make tax-free purchases
unless it has an active | ||||||
| 7 | identification number issued by the Department.
| ||||||
| 8 | (12) (Blank).
| ||||||
| 9 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
| 10 | 2004, motor vehicles of the second division
with a gross | ||||||
| 11 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
| 12 | to the commercial distribution fee imposed under Section | ||||||
| 13 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
| 14 | 2004 and through June 30, 2005, the use in this State of | ||||||
| 15 | motor vehicles of the second division: (i) with a gross | ||||||
| 16 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
| 17 | are subject to the commercial distribution fee imposed | ||||||
| 18 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
| 19 | (iii) that are primarily used for commercial purposes. | ||||||
| 20 | Through June 30, 2005, this
exemption applies to repair and | ||||||
| 21 | replacement parts added
after the
initial purchase of such | ||||||
| 22 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
| 23 | that
would qualify for the rolling stock exemption | ||||||
| 24 | otherwise provided for in this
Act. For purposes of this | ||||||
| 25 | paragraph, "used for commercial purposes" means the | ||||||
| 26 | transportation of persons or property in furtherance of any | ||||||
| |||||||
| |||||||
| 1 | commercial or industrial enterprise whether for-hire or | ||||||
| 2 | not.
| ||||||
| 3 | (13) Proceeds from sales to owners, lessors, or
| ||||||
| 4 | shippers of
tangible personal property that is utilized by | ||||||
| 5 | interstate carriers for
hire for use as rolling stock | ||||||
| 6 | moving in interstate commerce
and equipment operated by a | ||||||
| 7 | telecommunications provider, licensed as a
common carrier | ||||||
| 8 | by the Federal Communications Commission, which is
| ||||||
| 9 | permanently installed in or affixed to aircraft moving in | ||||||
| 10 | interstate commerce.
| ||||||
| 11 | (14) Machinery and equipment that will be used by the | ||||||
| 12 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
| 13 | process of manufacturing or
assembling tangible personal | ||||||
| 14 | property for wholesale or retail sale or
lease, whether the | ||||||
| 15 | sale or lease is made directly by the manufacturer or by
| ||||||
| 16 | some other person, whether the materials used in the | ||||||
| 17 | process are owned by
the manufacturer or some other person, | ||||||
| 18 | or whether the sale or lease is made
apart from or as an | ||||||
| 19 | incident to the seller's engaging in the service
occupation | ||||||
| 20 | of producing machines, tools, dies, jigs, patterns, | ||||||
| 21 | gauges, or
other similar items of no commercial value on | ||||||
| 22 | special order for a particular
purchaser. The exemption | ||||||
| 23 | provided by this paragraph (14) does not include machinery | ||||||
| 24 | and equipment used in (i) the generation of electricity for | ||||||
| 25 | wholesale or retail sale; (ii) the generation or treatment | ||||||
| 26 | of natural or artificial gas for wholesale or retail sale | ||||||
| |||||||
| |||||||
| 1 | that is delivered to customers through pipes, pipelines, or | ||||||
| 2 | mains; or (iii) the treatment of water for wholesale or | ||||||
| 3 | retail sale that is delivered to customers through pipes, | ||||||
| 4 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
| 5 | are declaratory of existing law as to the meaning and scope | ||||||
| 6 | of this exemption. Beginning on July 1, 2017 and until July | ||||||
| 7 | 1, 2019, the exemption provided by this paragraph (14) | ||||||
| 8 | includes, but is not limited to, graphic arts machinery and | ||||||
| 9 | equipment, as defined in paragraph (4) of this Section.
| ||||||
| 10 | (15) Proceeds of mandatory service charges separately | ||||||
| 11 | stated on
customers' bills for purchase and consumption of | ||||||
| 12 | food and beverages, to the
extent that the proceeds of the | ||||||
| 13 | service charge are in fact turned over as
tips or as a | ||||||
| 14 | substitute for tips to the employees who participate | ||||||
| 15 | directly
in preparing, serving, hosting or cleaning up the | ||||||
| 16 | food or beverage function
with respect to which the service | ||||||
| 17 | charge is imposed.
| ||||||
| 18 | (16) Petroleum products sold to a purchaser if the | ||||||
| 19 | seller
is prohibited by federal law from charging tax to | ||||||
| 20 | the purchaser.
| ||||||
| 21 | (17) Tangible personal property sold to a common | ||||||
| 22 | carrier by rail or
motor that
receives the physical | ||||||
| 23 | possession of the property in Illinois and that
transports | ||||||
| 24 | the property, or shares with another common carrier in the
| ||||||
| 25 | transportation of the property, out of Illinois on a | ||||||
| 26 | standard uniform bill
of lading showing the seller of the | ||||||
| |||||||
| |||||||
| 1 | property as the shipper or consignor of
the property to a | ||||||
| 2 | destination outside Illinois, for use outside Illinois.
| ||||||
| 3 | (18) Legal tender, currency, medallions, or gold or | ||||||
| 4 | silver coinage
issued by the State of Illinois, the | ||||||
| 5 | government of the United States of
America, or the | ||||||
| 6 | government of any foreign country, and bullion.
| ||||||
| 7 | (19) Until July 1, 2003, oil field exploration, | ||||||
| 8 | drilling, and production
equipment, including
(i) rigs and | ||||||
| 9 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
| 10 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
| 11 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
| 12 | storage tanks and flow
lines, (v) any individual | ||||||
| 13 | replacement part for oil field exploration,
drilling, and | ||||||
| 14 | production equipment, and (vi) machinery and equipment | ||||||
| 15 | purchased
for lease; but
excluding motor vehicles required | ||||||
| 16 | to be registered under the Illinois
Vehicle Code.
| ||||||
| 17 | (20) Photoprocessing machinery and equipment, | ||||||
| 18 | including repair and
replacement parts, both new and used, | ||||||
| 19 | including that manufactured on
special order, certified by | ||||||
| 20 | the purchaser to be used primarily for
photoprocessing, and | ||||||
| 21 | including photoprocessing machinery and equipment
| ||||||
| 22 | purchased for lease.
| ||||||
| 23 | (21) Until July 1, 2023, coal and aggregate | ||||||
| 24 | exploration, mining, off-highway hauling,
processing,
| ||||||
| 25 | maintenance, and reclamation equipment, including
| ||||||
| 26 | replacement parts and equipment, and including
equipment | ||||||
| |||||||
| |||||||
| 1 | purchased for lease, but excluding motor vehicles required | ||||||
| 2 | to be
registered under the Illinois Vehicle Code. The | ||||||
| 3 | changes made to this Section by Public Act 97-767 apply on | ||||||
| 4 | and after July 1, 2003, but no claim for credit or refund | ||||||
| 5 | is allowed on or after August 16, 2013 (the effective date | ||||||
| 6 | of Public Act 98-456)
for such taxes paid during the period | ||||||
| 7 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
| 8 | effective date of Public Act 98-456).
| ||||||
| 9 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
| 10 | sold to or used by an air carrier,
certified by the carrier | ||||||
| 11 | to be used for consumption, shipment, or storage
in the | ||||||
| 12 | conduct of its business as an air common carrier, for a | ||||||
| 13 | flight
destined for or returning from a location or | ||||||
| 14 | locations
outside the United States without regard to | ||||||
| 15 | previous or subsequent domestic
stopovers.
| ||||||
| 16 | Beginning July 1, 2013, fuel and petroleum products | ||||||
| 17 | sold to or used by an air carrier, certified by the carrier | ||||||
| 18 | to be used for consumption, shipment, or storage in the | ||||||
| 19 | conduct of its business as an air common carrier, for a | ||||||
| 20 | flight that (i) is engaged in foreign trade or is engaged | ||||||
| 21 | in trade between the United States and any of its | ||||||
| 22 | possessions and (ii) transports at least one individual or | ||||||
| 23 | package for hire from the city of origination to the city | ||||||
| 24 | of final destination on the same aircraft, without regard | ||||||
| 25 | to a change in the flight number of that aircraft. | ||||||
| 26 | (23) A transaction in which the purchase order is | ||||||
| |||||||
| |||||||
| 1 | received by a florist
who is located outside Illinois, but | ||||||
| 2 | who has a florist located in Illinois
deliver the property | ||||||
| 3 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
| 4 | (24) Fuel consumed or used in the operation of ships, | ||||||
| 5 | barges, or vessels
that are used primarily in or for the | ||||||
| 6 | transportation of property or the
conveyance of persons for | ||||||
| 7 | hire on rivers bordering on this State if the
fuel is | ||||||
| 8 | delivered by the seller to the purchaser's barge, ship, or | ||||||
| 9 | vessel
while it is afloat upon that bordering river.
| ||||||
| 10 | (25) Except as provided in item (25-5) of this Section, | ||||||
| 11 | a
motor vehicle sold in this State to a nonresident even | ||||||
| 12 | though the
motor vehicle is delivered to the nonresident in | ||||||
| 13 | this State, if the motor
vehicle is not to be titled in | ||||||
| 14 | this State, and if a drive-away permit
is issued to the | ||||||
| 15 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
| 16 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
| 17 | registration
plates to transfer to the motor vehicle upon | ||||||
| 18 | returning to his or her home
state. The issuance of the | ||||||
| 19 | drive-away permit or having
the
out-of-state registration | ||||||
| 20 | plates to be transferred is prima facie evidence
that the | ||||||
| 21 | motor vehicle will not be titled in this State.
| ||||||
| 22 | (25-5) The exemption under item (25) does not apply if | ||||||
| 23 | the state in which the motor vehicle will be titled does | ||||||
| 24 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
| 25 | and delivered in that state to an Illinois resident but | ||||||
| 26 | titled in Illinois. The tax collected under this Act on the | ||||||
| |||||||
| |||||||
| 1 | sale of a motor vehicle in this State to a resident of | ||||||
| 2 | another state that does not allow a reciprocal exemption | ||||||
| 3 | shall be imposed at a rate equal to the state's rate of tax | ||||||
| 4 | on taxable property in the state in which the purchaser is | ||||||
| 5 | a resident, except that the tax shall not exceed the tax | ||||||
| 6 | that would otherwise be imposed under this Act. At the time | ||||||
| 7 | of the sale, the purchaser shall execute a statement, | ||||||
| 8 | signed under penalty of perjury, of his or her intent to | ||||||
| 9 | title the vehicle in the state in which the purchaser is a | ||||||
| 10 | resident within 30 days after the sale and of the fact of | ||||||
| 11 | the payment to the State of Illinois of tax in an amount | ||||||
| 12 | equivalent to the state's rate of tax on taxable property | ||||||
| 13 | in his or her state of residence and shall submit the | ||||||
| 14 | statement to the appropriate tax collection agency in his | ||||||
| 15 | or her state of residence. In addition, the retailer must | ||||||
| 16 | retain a signed copy of the statement in his or her | ||||||
| 17 | records. Nothing in this item shall be construed to require | ||||||
| 18 | the removal of the vehicle from this state following the | ||||||
| 19 | filing of an intent to title the vehicle in the purchaser's | ||||||
| 20 | state of residence if the purchaser titles the vehicle in | ||||||
| 21 | his or her state of residence within 30 days after the date | ||||||
| 22 | of sale. The tax collected under this Act in accordance | ||||||
| 23 | with this item (25-5) shall be proportionately distributed | ||||||
| 24 | as if the tax were collected at the 6.25% general rate | ||||||
| 25 | imposed under this Act.
| ||||||
| 26 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
| |||||||
| |||||||
| 1 | under this Act on the sale of an aircraft, as defined in | ||||||
| 2 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
| 3 | following conditions are met: | ||||||
| 4 | (1) the aircraft leaves this State within 15 days | ||||||
| 5 | after the later of either the issuance of the final | ||||||
| 6 | billing for the sale of the aircraft, or the authorized | ||||||
| 7 | approval for return to service, completion of the | ||||||
| 8 | maintenance record entry, and completion of the test | ||||||
| 9 | flight and ground test for inspection, as required by | ||||||
| 10 | 14 C.F.R. 91.407; | ||||||
| 11 | (2) the aircraft is not based or registered in this | ||||||
| 12 | State after the sale of the aircraft; and | ||||||
| 13 | (3) the seller retains in his or her books and | ||||||
| 14 | records and provides to the Department a signed and | ||||||
| 15 | dated certification from the purchaser, on a form | ||||||
| 16 | prescribed by the Department, certifying that the | ||||||
| 17 | requirements of this item (25-7) are met. The | ||||||
| 18 | certificate must also include the name and address of | ||||||
| 19 | the purchaser, the address of the location where the | ||||||
| 20 | aircraft is to be titled or registered, the address of | ||||||
| 21 | the primary physical location of the aircraft, and | ||||||
| 22 | other information that the Department may reasonably | ||||||
| 23 | require. | ||||||
| 24 | For purposes of this item (25-7): | ||||||
| 25 | "Based in this State" means hangared, stored, or | ||||||
| 26 | otherwise used, excluding post-sale customizations as | ||||||
| |||||||
| |||||||
| 1 | defined in this Section, for 10 or more days in each | ||||||
| 2 | 12-month period immediately following the date of the sale | ||||||
| 3 | of the aircraft. | ||||||
| 4 | "Registered in this State" means an aircraft | ||||||
| 5 | registered with the Department of Transportation, | ||||||
| 6 | Aeronautics Division, or titled or registered with the | ||||||
| 7 | Federal Aviation Administration to an address located in | ||||||
| 8 | this State. | ||||||
| 9 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
| 10 | Section 2-70.
| ||||||
| 11 | (26) Semen used for artificial insemination of | ||||||
| 12 | livestock for direct
agricultural production.
| ||||||
| 13 | (27) Horses, or interests in horses, registered with | ||||||
| 14 | and meeting the
requirements of any of the
Arabian Horse | ||||||
| 15 | Club Registry of America, Appaloosa Horse Club, American | ||||||
| 16 | Quarter
Horse Association, United States
Trotting | ||||||
| 17 | Association, or Jockey Club, as appropriate, used for
| ||||||
| 18 | purposes of breeding or racing for prizes. This item (27) | ||||||
| 19 | is exempt from the provisions of Section 2-70, and the | ||||||
| 20 | exemption provided for under this item (27) applies for all | ||||||
| 21 | periods beginning May 30, 1995, but no claim for credit or | ||||||
| 22 | refund is allowed on or after January 1, 2008 (the | ||||||
| 23 | effective date of Public Act 95-88)
for such taxes paid | ||||||
| 24 | during the period beginning May 30, 2000 and ending on | ||||||
| 25 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
| 26 | (28) Computers and communications equipment utilized | ||||||
| |||||||
| |||||||
| 1 | for any
hospital
purpose
and equipment used in the | ||||||
| 2 | diagnosis,
analysis, or treatment of hospital patients | ||||||
| 3 | sold to a lessor who leases the
equipment, under a lease of | ||||||
| 4 | one year or longer executed or in effect at the
time of the | ||||||
| 5 | purchase, to a
hospital
that has been issued an active tax | ||||||
| 6 | exemption identification number by the
Department under | ||||||
| 7 | Section 1g of this Act.
| ||||||
| 8 | (29) Personal property sold to a lessor who leases the
| ||||||
| 9 | property, under a
lease of one year or longer executed or | ||||||
| 10 | in effect at the time of the purchase,
to a governmental | ||||||
| 11 | body
that has been issued an active tax exemption | ||||||
| 12 | identification number by the
Department under Section 1g of | ||||||
| 13 | this Act.
| ||||||
| 14 | (30) Beginning with taxable years ending on or after | ||||||
| 15 | December
31, 1995
and
ending with taxable years ending on | ||||||
| 16 | or before December 31, 2004,
personal property that is
| ||||||
| 17 | donated for disaster relief to be used in a State or | ||||||
| 18 | federally declared
disaster area in Illinois or bordering | ||||||
| 19 | Illinois by a manufacturer or retailer
that is registered | ||||||
| 20 | in this State to a corporation, society, association,
| ||||||
| 21 | foundation, or institution that has been issued a sales tax | ||||||
| 22 | exemption
identification number by the Department that | ||||||
| 23 | assists victims of the disaster
who reside within the | ||||||
| 24 | declared disaster area.
| ||||||
| 25 | (31) Beginning with taxable years ending on or after | ||||||
| 26 | December
31, 1995 and
ending with taxable years ending on | ||||||
| |||||||
| |||||||
| 1 | or before December 31, 2004, personal
property that is used | ||||||
| 2 | in the performance of infrastructure repairs in this
State, | ||||||
| 3 | including but not limited to municipal roads and streets, | ||||||
| 4 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
| 5 | water and sewer line extensions,
water distribution and | ||||||
| 6 | purification facilities, storm water drainage and
| ||||||
| 7 | retention facilities, and sewage treatment facilities, | ||||||
| 8 | resulting from a State
or federally declared disaster in | ||||||
| 9 | Illinois or bordering Illinois when such
repairs are | ||||||
| 10 | initiated on facilities located in the declared disaster | ||||||
| 11 | area
within 6 months after the disaster.
| ||||||
| 12 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
| 13 | a "game breeding
and
hunting preserve area" as that term is | ||||||
| 14 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
| 15 | the provisions
of
Section 2-70.
| ||||||
| 16 | (33) A motor vehicle, as that term is defined in | ||||||
| 17 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
| 18 | to a corporation, limited liability
company, society, | ||||||
| 19 | association, foundation, or institution that is determined | ||||||
| 20 | by
the Department to be organized and operated exclusively | ||||||
| 21 | for educational
purposes. For purposes of this exemption, | ||||||
| 22 | "a corporation, limited liability
company, society, | ||||||
| 23 | association, foundation, or institution organized and
| ||||||
| 24 | operated
exclusively for educational purposes" means all | ||||||
| 25 | tax-supported public schools,
private schools that offer | ||||||
| 26 | systematic instruction in useful branches of
learning by | ||||||
| |||||||
| |||||||
| 1 | methods common to public schools and that compare favorably | ||||||
| 2 | in
their scope and intensity with the course of study | ||||||
| 3 | presented in tax-supported
schools, and vocational or | ||||||
| 4 | technical schools or institutes organized and
operated | ||||||
| 5 | exclusively to provide a course of study of not less than 6 | ||||||
| 6 | weeks
duration and designed to prepare individuals to | ||||||
| 7 | follow a trade or to pursue a
manual, technical, | ||||||
| 8 | mechanical, industrial, business, or commercial
| ||||||
| 9 | occupation.
| ||||||
| 10 | (34) Beginning January 1, 2000, personal property, | ||||||
| 11 | including food, purchased
through fundraising events for | ||||||
| 12 | the benefit of a public or private elementary or
secondary | ||||||
| 13 | school, a group of those schools, or one or more school | ||||||
| 14 | districts if
the events are sponsored by an entity | ||||||
| 15 | recognized by the school district that
consists primarily | ||||||
| 16 | of volunteers and includes parents and teachers of the
| ||||||
| 17 | school children. This paragraph does not apply to | ||||||
| 18 | fundraising events (i) for
the benefit of private home | ||||||
| 19 | instruction or (ii) for which the fundraising
entity | ||||||
| 20 | purchases the personal property sold at the events from | ||||||
| 21 | another
individual or entity that sold the property for the | ||||||
| 22 | purpose of resale by the
fundraising entity and that | ||||||
| 23 | profits from the sale to the fundraising entity.
This | ||||||
| 24 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
| 25 | (35) Beginning January 1, 2000 and through December 31, | ||||||
| 26 | 2001, new or used
automatic vending machines that prepare | ||||||
| |||||||
| |||||||
| 1 | and serve hot food and beverages,
including coffee, soup, | ||||||
| 2 | and other items, and replacement parts for these
machines. | ||||||
| 3 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
| 4 | machines
and parts for machines used in
commercial, | ||||||
| 5 | coin-operated amusement and vending business if a use or | ||||||
| 6 | occupation
tax is paid on the gross receipts derived from | ||||||
| 7 | the use of the commercial,
coin-operated amusement and | ||||||
| 8 | vending machines. This paragraph is exempt from
the | ||||||
| 9 | provisions of Section 2-70.
| ||||||
| 10 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
| 11 | 2016, food for human consumption that is to be consumed off
| ||||||
| 12 | the premises where it is sold (other than alcoholic | ||||||
| 13 | beverages, soft drinks,
and food that has been prepared for | ||||||
| 14 | immediate consumption) and prescription
and | ||||||
| 15 | nonprescription medicines, drugs, medical appliances, and | ||||||
| 16 | insulin, urine
testing materials, syringes, and needles | ||||||
| 17 | used by diabetics, for human use, when
purchased for use by | ||||||
| 18 | a person receiving medical assistance under Article V of
| ||||||
| 19 | the Illinois Public Aid Code who resides in a licensed | ||||||
| 20 | long-term care facility,
as defined in the Nursing Home | ||||||
| 21 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
| 22 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
| 23 | Mental Health Rehabilitation Act of 2013.
| ||||||
| 24 | (36) Beginning August 2, 2001, computers and | ||||||
| 25 | communications equipment
utilized for any hospital purpose | ||||||
| 26 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
| |||||||
| |||||||
| 1 | of hospital patients sold to a lessor who leases the
| ||||||
| 2 | equipment, under a lease of one year or longer executed or | ||||||
| 3 | in effect at the
time of the purchase, to a hospital that | ||||||
| 4 | has been issued an active tax
exemption identification | ||||||
| 5 | number by the Department under Section 1g of this Act.
This | ||||||
| 6 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
| 7 | (37) Beginning August 2, 2001, personal property sold | ||||||
| 8 | to a lessor who
leases the property, under a lease of one | ||||||
| 9 | year or longer executed or in effect
at the time of the | ||||||
| 10 | purchase, to a governmental body that has been issued an
| ||||||
| 11 | active tax exemption identification number by the | ||||||
| 12 | Department under Section 1g
of this Act. This paragraph is | ||||||
| 13 | exempt from the provisions of Section 2-70.
| ||||||
| 14 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
| 15 | 2016, tangible personal property purchased
from an | ||||||
| 16 | Illinois retailer by a taxpayer engaged in centralized | ||||||
| 17 | purchasing
activities in Illinois who will, upon receipt of | ||||||
| 18 | the property in Illinois,
temporarily store the property in | ||||||
| 19 | Illinois (i) for the purpose of subsequently
transporting | ||||||
| 20 | it outside this State for use or consumption thereafter | ||||||
| 21 | solely
outside this State or (ii) for the purpose of being | ||||||
| 22 | processed, fabricated, or
manufactured into, attached to, | ||||||
| 23 | or incorporated into other tangible personal
property to be | ||||||
| 24 | transported outside this State and thereafter used or | ||||||
| 25 | consumed
solely outside this State. The Director of Revenue | ||||||
| 26 | shall, pursuant to rules
adopted in accordance with the | ||||||
| |||||||
| |||||||
| 1 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
| 2 | any taxpayer in good standing with the Department who is | ||||||
| 3 | eligible for
the exemption under this paragraph (38). The | ||||||
| 4 | permit issued under
this paragraph (38) shall authorize the | ||||||
| 5 | holder, to the extent and
in the manner specified in the | ||||||
| 6 | rules adopted under this Act, to purchase
tangible personal | ||||||
| 7 | property from a retailer exempt from the taxes imposed by
| ||||||
| 8 | this Act. Taxpayers shall maintain all necessary books and | ||||||
| 9 | records to
substantiate the use and consumption of all such | ||||||
| 10 | tangible personal property
outside of the State of | ||||||
| 11 | Illinois.
| ||||||
| 12 | (39) Beginning January 1, 2008, tangible personal | ||||||
| 13 | property used in the construction or maintenance of a | ||||||
| 14 | community water supply, as defined under Section 3.145 of | ||||||
| 15 | the Environmental Protection Act, that is operated by a | ||||||
| 16 | not-for-profit corporation that holds a valid water supply | ||||||
| 17 | permit issued under Title IV of the Environmental | ||||||
| 18 | Protection Act. This paragraph is exempt from the | ||||||
| 19 | provisions of Section 2-70.
| ||||||
| 20 | (40) Beginning January 1, 2010, materials, parts, | ||||||
| 21 | equipment, components, and furnishings incorporated into | ||||||
| 22 | or upon an aircraft as part of the modification, | ||||||
| 23 | refurbishment, completion, replacement, repair, or | ||||||
| 24 | maintenance of the aircraft. This exemption includes | ||||||
| 25 | consumable supplies used in the modification, | ||||||
| 26 | refurbishment, completion, replacement, repair, and | ||||||
| |||||||
| |||||||
| 1 | maintenance of aircraft, but excludes any materials, | ||||||
| 2 | parts, equipment, components, and consumable supplies used | ||||||
| 3 | in the modification, replacement, repair, and maintenance | ||||||
| 4 | of aircraft engines or power plants, whether such engines | ||||||
| 5 | or power plants are installed or uninstalled upon any such | ||||||
| 6 | aircraft. "Consumable supplies" include, but are not | ||||||
| 7 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
| 8 | lubricants, cleaning solution, latex gloves, and | ||||||
| 9 | protective films. This exemption applies only to the sale | ||||||
| 10 | of qualifying tangible personal property to persons who | ||||||
| 11 | modify, refurbish, complete, replace, or maintain an | ||||||
| 12 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
| 13 | empowered to operate an approved repair station by the | ||||||
| 14 | Federal Aviation Administration, (ii) have a Class IV | ||||||
| 15 | Rating, and (iii) conduct operations in accordance with | ||||||
| 16 | Part 145 of the Federal Aviation Regulations. The exemption | ||||||
| 17 | does not include aircraft operated by a commercial air | ||||||
| 18 | carrier providing scheduled passenger air service pursuant | ||||||
| 19 | to authority issued under Part 121 or Part 129 of the | ||||||
| 20 | Federal Aviation Regulations. The changes made to this | ||||||
| 21 | paragraph (40) by Public Act 98-534 are declarative of | ||||||
| 22 | existing law. | ||||||
| 23 | (41) Tangible personal property sold to a | ||||||
| 24 | public-facilities corporation, as described in Section | ||||||
| 25 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 26 | constructing or furnishing a municipal convention hall, | ||||||
| |||||||
| |||||||
| 1 | but only if the legal title to the municipal convention | ||||||
| 2 | hall is transferred to the municipality without any further | ||||||
| 3 | consideration by or on behalf of the municipality at the | ||||||
| 4 | time of the completion of the municipal convention hall or | ||||||
| 5 | upon the retirement or redemption of any bonds or other | ||||||
| 6 | debt instruments issued by the public-facilities | ||||||
| 7 | corporation in connection with the development of the | ||||||
| 8 | municipal convention hall. This exemption includes | ||||||
| 9 | existing public-facilities corporations as provided in | ||||||
| 10 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
| 11 | paragraph is exempt from the provisions of Section 2-70. | ||||||
| 12 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
| 13 | tampons, and menstrual cups. | ||||||
| 14 | (43) Merchandise that is subject to the Rental Purchase | ||||||
| 15 | Agreement Occupation and Use Tax. The purchaser must | ||||||
| 16 | certify that the item is purchased to be rented subject to | ||||||
| 17 | a rental purchase agreement, as defined in the Rental | ||||||
| 18 | Purchase Agreement Act, and provide proof of registration | ||||||
| 19 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
| 20 | Act. This paragraph is exempt from the provisions of | ||||||
| 21 | Section 2-70. | ||||||
| 22 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
| 23 | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | ||||||
| 24 | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18.)
| ||||||
| 25 | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||||||
| |||||||
| |||||||
| 1 | Sec. 2-45. Manufacturing and assembly exemption. The | ||||||
| 2 | manufacturing
and assembly machinery and equipment exemption | ||||||
| 3 | includes machinery
and equipment that replaces machinery
and | ||||||
| 4 | equipment in an existing manufacturing facility as well as | ||||||
| 5 | machinery
and equipment that are for use in an expanded or new
| ||||||
| 6 | manufacturing facility.
| ||||||
| 7 | The machinery and equipment exemption also includes | ||||||
| 8 | machinery
and equipment used in the
general maintenance or | ||||||
| 9 | repair of exempt machinery and equipment or for
in-house | ||||||
| 10 | manufacture of exempt machinery and equipment.
Beginning on | ||||||
| 11 | July 1, 2017 and until July 1, 2019, the manufacturing and | ||||||
| 12 | assembling machinery and equipment exemption also includes | ||||||
| 13 | graphic arts machinery and equipment, as defined in paragraph | ||||||
| 14 | (4) of Section 2-5. The machinery and equipment exemption does | ||||||
| 15 | not include machinery and equipment used in (i) the generation | ||||||
| 16 | of electricity for wholesale or retail sale; (ii) the | ||||||
| 17 | generation or treatment of natural or artificial gas for | ||||||
| 18 | wholesale or retail sale that is delivered to customers through | ||||||
| 19 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
| 20 | wholesale or retail sale that is delivered to customers through | ||||||
| 21 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
| 22 | Act of the 98th General Assembly are declaratory of existing | ||||||
| 23 | law as to the meaning and scope of this exemption. For the | ||||||
| 24 | purposes of this exemption, terms have the following meanings:
| ||||||
| 25 | (1) "Manufacturing process" means the production of an | ||||||
| 26 | article of
tangible personal property, whether the article | ||||||
| |||||||
| |||||||
| 1 | is a finished product or an
article for use in the process | ||||||
| 2 | of manufacturing or assembling a different
article of | ||||||
| 3 | tangible personal property, by a procedure commonly | ||||||
| 4 | regarded as
manufacturing, processing, fabricating, or | ||||||
| 5 | refining that changes some
existing material or materials | ||||||
| 6 | into a material with a different form, use,
or name. In | ||||||
| 7 | relation to a recognized integrated business composed of a
| ||||||
| 8 | series of operations that collectively constitute | ||||||
| 9 | manufacturing, or
individually constitute manufacturing | ||||||
| 10 | operations, the manufacturing process
commences with the | ||||||
| 11 | first operation or stage of production in the series and
| ||||||
| 12 | does not end until the completion of the final product in | ||||||
| 13 | the last
operation or stage of production in the series. | ||||||
| 14 | For purposes of this
exemption, photoprocessing is a | ||||||
| 15 | manufacturing process of tangible personal
property for | ||||||
| 16 | wholesale or retail sale.
| ||||||
| 17 | (2) "Assembling process" means the production of an | ||||||
| 18 | article of
tangible personal property, whether the article | ||||||
| 19 | is a finished product or an
article for use in the process | ||||||
| 20 | of manufacturing or assembling a different
article of | ||||||
| 21 | tangible personal property, by the combination of existing
| ||||||
| 22 | materials in a manner commonly regarded as assembling that | ||||||
| 23 | results in a
material of a different form, use, or name.
| ||||||
| 24 | (3) "Machinery" means major mechanical machines or | ||||||
| 25 | major components of
those machines contributing to a | ||||||
| 26 | manufacturing or assembling process.
| ||||||
| |||||||
| |||||||
| 1 | (4) "Equipment" includes an independent device or tool | ||||||
| 2 | separate from
machinery but essential to an integrated | ||||||
| 3 | manufacturing or assembly process;
including computers | ||||||
| 4 | used primarily in a manufacturer's computer assisted | ||||||
| 5 | design, computer assisted manufacturing
(CAD/CAM) system; | ||||||
| 6 | any subunit or assembly comprising a component of any
| ||||||
| 7 | machinery or auxiliary, adjunct, or attachment parts of | ||||||
| 8 | machinery, such as
tools, dies, jigs, fixtures, patterns, | ||||||
| 9 | and molds; and any parts that
require periodic replacement | ||||||
| 10 | in the course of normal operation; but does
not include | ||||||
| 11 | hand tools. Equipment includes chemicals or chemicals | ||||||
| 12 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
| 13 | acting as catalysts effect a direct and
immediate change | ||||||
| 14 | upon a
product being manufactured or assembled for | ||||||
| 15 | wholesale or retail sale or
lease.
| ||||||
| 16 | (5) "Production related tangible personal property" | ||||||
| 17 | means all tangible personal property that is used or | ||||||
| 18 | consumed by the purchaser in a manufacturing facility in | ||||||
| 19 | which a manufacturing process takes place and includes, | ||||||
| 20 | without limitation, tangible personal property that is | ||||||
| 21 | purchased for incorporation into real estate within a | ||||||
| 22 | manufacturing facility and tangible personal property that | ||||||
| 23 | is used or consumed in activities such as research and | ||||||
| 24 | development, preproduction material handling, receiving, | ||||||
| 25 | quality control, inventory control, storage, staging, and | ||||||
| 26 | packaging for shipping and transportation purposes. | ||||||
| |||||||
| |||||||
| 1 | "Production related tangible personal property" does not | ||||||
| 2 | include (i) tangible personal property that is used, within | ||||||
| 3 | or without a manufacturing facility, in sales, purchasing, | ||||||
| 4 | accounting, fiscal management, marketing, personnel | ||||||
| 5 | recruitment or selection, or landscaping or (ii) tangible | ||||||
| 6 | personal property that is required to be titled or | ||||||
| 7 | registered with a department, agency, or unit of federal, | ||||||
| 8 | State, or local government.
| ||||||
| 9 | The manufacturing and assembling machinery and equipment | ||||||
| 10 | exemption includes production related tangible personal | ||||||
| 11 | property that is purchased on or after July 1, 2007 and on or | ||||||
| 12 | before June 30, 2008. The exemption for production related | ||||||
| 13 | tangible personal property is subject to both of the following | ||||||
| 14 | limitations: | ||||||
| 15 | (1) The maximum amount of the exemption for any one | ||||||
| 16 | taxpayer may not exceed 5% of the purchase price of | ||||||
| 17 | production related tangible personal property that is | ||||||
| 18 | purchased on or after July 1, 2007 and on or before June | ||||||
| 19 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
| 20 | be earned by the purchase of production related tangible | ||||||
| 21 | personal property for which an exemption is received under | ||||||
| 22 | this Section. | ||||||
| 23 | (2) The maximum aggregate amount of the exemptions for | ||||||
| 24 | production related tangible personal property awarded | ||||||
| 25 | under this Act and the Use
Tax Act to all taxpayers may not | ||||||
| 26 | exceed $10,000,000. If the claims for the exemption exceed | ||||||
| |||||||
| |||||||
| 1 | $10,000,000, then the Department shall reduce the amount of | ||||||
| 2 | the exemption to each taxpayer on a pro rata basis. | ||||||
| 3 | The Department may adopt rules to implement and administer the | ||||||
| 4 | exemption for production related tangible personal property. | ||||||
| 5 | The manufacturing and assembling machinery and equipment | ||||||
| 6 | exemption
includes the sale of materials to a purchaser who | ||||||
| 7 | produces exempted types
of machinery, equipment, or tools and | ||||||
| 8 | who rents or leases that machinery,
equipment, or tools to a | ||||||
| 9 | manufacturer of tangible personal property. This
exemption | ||||||
| 10 | also includes the sale of materials to a purchaser who | ||||||
| 11 | manufactures
those materials into an exempted type of | ||||||
| 12 | machinery, equipment, or tools
that the purchaser uses himself | ||||||
| 13 | or herself in the manufacturing of tangible
personal property. | ||||||
| 14 | The purchaser of the machinery and equipment who has an
active | ||||||
| 15 | resale registration number shall furnish that number to the | ||||||
| 16 | seller
at the time of purchase. A purchaser of the machinery, | ||||||
| 17 | equipment, and
tools without an active resale registration | ||||||
| 18 | number shall furnish to the
seller a certificate of exemption | ||||||
| 19 | for each transaction stating facts
establishing the exemption | ||||||
| 20 | for that transaction, and that certificate shall
be available | ||||||
| 21 | to the Department for inspection or audit. Informal
rulings, | ||||||
| 22 | opinions, or letters issued by the Department in response to an
| ||||||
| 23 | inquiry or request for an opinion from any person regarding the | ||||||
| 24 | coverage and
applicability of this exemption to specific | ||||||
| 25 | devices shall be published,
maintained as a public record,
and | ||||||
| 26 | made available for public inspection and copying. If the | ||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | informal
ruling, opinion, or letter contains trade secrets or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | other confidential
information, where possible, the Department | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3 | shall delete that information
before publication. Whenever | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | informal rulings, opinions, or letters
contain a policy of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | general applicability, the Department shall
formulate and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | adopt that policy as a rule in accordance with the Illinois
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | Administrative Procedure Act.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | The manufacturing and assembling machinery and equipment
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | exemption is exempt from the provisions of Section 2-70. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | (Source: P.A. 100-22, eff. 7-6-17.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11 | Section 995. No acceleration or delay. Where this Act makes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 12 | changes in a statute that is represented in this Act by text | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 13 | that is not yet or no longer in effect (for example, a Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 14 | represented by multiple versions), the use of that text does | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | not accelerate or delay the taking effect of (i) the changes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 16 | made by this Act or (ii) provisions derived from any other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 17 | Public Act.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 18 | Section 999. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | becoming law.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||