98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3714

Introduced , by Rep. Christian L. Mitchell

SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.826 new
30 ILCS 105/6z-100 new
35 ILCS 105/3-10
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3 from Ch. 120, par. 442

Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 2% surcharge on firearm ammunition. Amends the State Finance Act. Creates the High Crime Trauma Center Grant Fund. Requires the 2% surcharge to be deposited into the Fund. Subject to appropriation, authorizes the Department of Public Health to make grants to trauma centers in high crime areas. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB3714LRB098 14370 HLH 49019 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5Sections 5.826 and 6z-100 as follows:
6 (30 ILCS 105/5.826 new)
7 Sec. 5.826. The High Crime Trauma Center Grant Fund.
8 (30 ILCS 105/6z-100 new)
9 Sec. 6z-100. High Crime Trauma Center Grant Fund. The High
10Crime Trauma Center Grant Fund is created as a special fund in
11the State Treasury. Subject to appropriation, moneys in the
12Fund shall be used by the Department of Public Health to make
13grants to trauma centers in high crime areas for medical
14emergency responses. "Trauma center" has the same meaning as in
15the Emergency Medical Services (EMS) Systems Act.
16 Section 10. The Use Tax Act is amended by changing Sections
173-10 and 9 as follows:
18 (35 ILCS 105/3-10)
19 Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of

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1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property functionally
6used or consumed is a by-product or waste product that has been
7refined, manufactured, or produced from property purchased at
8retail, then the tax is imposed on the lower of the fair market
9value, if any, of the specific property so used in this State
10or on the selling price of the property purchased at retail.
11For purposes of this Section "fair market value" means the
12price at which property would change hands between a willing
13buyer and a willing seller, neither being under any compulsion
14to buy or sell and both having reasonable knowledge of the
15relevant facts. The fair market value shall be established by
16Illinois sales by the taxpayer of the same property as that
17functionally used or consumed, or if there are no such sales by
18the taxpayer, then comparable sales or purchases of property of
19like kind and character in Illinois.
20 Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24 Beginning on August 6, 2010 through August 15, 2010, with
25respect to sales tax holiday items as defined in Section 3-6 of
26this Act, the tax is imposed at the rate of 1.25%.

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1 With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before December 31, 2018, and (iii) 100% of the proceeds of
6sales made thereafter. If, at any time, however, the tax under
7this Act on sales of gasohol is imposed at the rate of 1.25%,
8then the tax imposed by this Act applies to 100% of the
9proceeds of sales of gasohol made during that time.
10 With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132018 but applies to 100% of the proceeds of sales made
14thereafter.
15 With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25 With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2018 but
3applies to 100% of the proceeds of sales made thereafter.
4 With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances,
9modifications to a motor vehicle for the purpose of rendering
10it usable by a disabled person, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, the tax is imposed at the rate of 1%. For the purposes of
13this Section, until September 1, 2009: the term "soft drinks"
14means any complete, finished, ready-to-use, non-alcoholic
15drink, whether carbonated or not, including but not limited to
16soda water, cola, fruit juice, vegetable juice, carbonated
17water, and all other preparations commonly known as soft drinks
18of whatever kind or description that are contained in any
19closed or sealed bottle, can, carton, or container, regardless
20of size; but "soft drinks" does not include coffee, tea,
21non-carbonated water, infant formula, milk or milk products as
22defined in the Grade A Pasteurized Milk and Milk Products Act,
23or drinks containing 50% or more natural fruit or vegetable
24juice.
25 Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

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1beverages that contain natural or artificial sweeteners. "Soft
2drinks" do not include beverages that contain milk or milk
3products, soy, rice or similar milk substitutes, or greater
4than 50% of vegetable or fruit juice by volume.
5 Until August 1, 2009, and notwithstanding any other
6provisions of this Act, "food for human consumption that is to
7be consumed off the premises where it is sold" includes all
8food sold through a vending machine, except soft drinks and
9food products that are dispensed hot from a vending machine,
10regardless of the location of the vending machine. Beginning
11August 1, 2009, and notwithstanding any other provisions of
12this Act, "food for human consumption that is to be consumed
13off the premises where it is sold" includes all food sold
14through a vending machine, except soft drinks, candy, and food
15products that are dispensed hot from a vending machine,
16regardless of the location of the vending machine.
17 Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "food for human consumption that
19is to be consumed off the premises where it is sold" does not
20include candy. For purposes of this Section, "candy" means a
21preparation of sugar, honey, or other natural or artificial
22sweeteners in combination with chocolate, fruits, nuts or other
23ingredients or flavorings in the form of bars, drops, or
24pieces. "Candy" does not include any preparation that contains
25flour or requires refrigeration.
26 Notwithstanding any other provisions of this Act,

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1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label includes:
13 (A) A "Drug Facts" panel; or
14 (B) A statement of the "active ingredient(s)" with a
15 list of those ingredients contained in the compound,
16 substance or preparation.
17 Beginning on the effective date of this amendatory Act of
18the 98th General Assembly, "prescription and nonprescription
19medicines and drugs" includes medical cannabis purchased from a
20registered dispensing organization under the Compassionate Use
21of Medical Cannabis Pilot Program Act.
22 Beginning January 1, 2014, in addition to all other rates
23of tax imposed under this Act, a surcharge of 2% is imposed on
24the selling price of firearm ammunition. "Firearm" and "firearm
25ammunition" have the meanings ascribed to them in Section 1.1
26of the Firearm Owners Identification Card Act.

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1 If the property that is purchased at retail from a retailer
2is acquired outside Illinois and used outside Illinois before
3being brought to Illinois for use here and is taxable under
4this Act, the "selling price" on which the tax is computed
5shall be reduced by an amount that represents a reasonable
6allowance for depreciation for the period of prior out-of-state
7use.
8(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
9 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
10 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
11and trailers that are required to be registered with an agency
12of this State, each retailer required or authorized to collect
13the tax imposed by this Act shall pay to the Department the
14amount of such tax (except as otherwise provided) at the time
15when he is required to file his return for the period during
16which such tax was collected, less a discount of 2.1% prior to
17January 1, 1990, and 1.75% on and after January 1, 1990, or $5
18per calendar year, whichever is greater, which is allowed to
19reimburse the retailer for expenses incurred in collecting the
20tax, keeping records, preparing and filing returns, remitting
21the tax and supplying data to the Department on request. In the
22case of retailers who report and pay the tax on a transaction
23by transaction basis, as provided in this Section, such
24discount shall be taken with each such tax remittance instead
25of when such retailer files his periodic return. The Department

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1may disallow the discount for retailers whose certificate of
2registration is revoked at the time the return is filed, but
3only if the Department's decision to revoke the certificate of
4registration has become final. A retailer need not remit that
5part of any tax collected by him to the extent that he is
6required to remit and does remit the tax imposed by the
7Retailers' Occupation Tax Act, with respect to the sale of the
8same property.
9 Where such tangible personal property is sold under a
10conditional sales contract, or under any other form of sale
11wherein the payment of the principal sum, or a part thereof, is
12extended beyond the close of the period for which the return is
13filed, the retailer, in collecting the tax (except as to motor
14vehicles, watercraft, aircraft, and trailers that are required
15to be registered with an agency of this State), may collect for
16each tax return period, only the tax applicable to that part of
17the selling price actually received during such tax return
18period.
19 Except as provided in this Section, on or before the
20twentieth day of each calendar month, such retailer shall file
21a return for the preceding calendar month. Such return shall be
22filed on forms prescribed by the Department and shall furnish
23such information as the Department may reasonably require.
24 The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5 1. The name of the seller;
6 2. The address of the principal place of business from
7 which he engages in the business of selling tangible
8 personal property at retail in this State;
9 3. The total amount of taxable receipts received by him
10 during the preceding calendar month from sales of tangible
11 personal property by him during such preceding calendar
12 month, including receipts from charge and time sales, but
13 less all deductions allowed by law;
14 4. The amount of credit provided in Section 2d of this
15 Act;
16 5. The amount of tax due;
17 5-5. The signature of the taxpayer; and
18 6. Such other reasonable information as the Department
19 may require.
20 If a taxpayer fails to sign a return within 30 days after
21the proper notice and demand for signature by the Department,
22the return shall be considered valid and any amount shown to be
23due on the return shall be deemed assessed.
24 Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

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1funds transfer. Beginning October 1, 1994, a taxpayer who has
2an average monthly tax liability of $100,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1995, a taxpayer who has
5an average monthly tax liability of $50,000 or more shall make
6all payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 2000, a taxpayer who has
8an annual tax liability of $200,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. The term "annual tax liability" shall be the
11sum of the taxpayer's liabilities under this Act, and under all
12other State and local occupation and use tax laws administered
13by the Department, for the immediately preceding calendar year.
14The term "average monthly tax liability" means the sum of the
15taxpayer's liabilities under this Act, and under all other
16State and local occupation and use tax laws administered by the
17Department, for the immediately preceding calendar year
18divided by 12. Beginning on October 1, 2002, a taxpayer who has
19a tax liability in the amount set forth in subsection (b) of
20Section 2505-210 of the Department of Revenue Law shall make
21all payments required by rules of the Department by electronic
22funds transfer.
23 Before August 1 of each year beginning in 1993, the
24Department shall notify all taxpayers required to make payments
25by electronic funds transfer. All taxpayers required to make
26payments by electronic funds transfer shall make those payments

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1for a minimum of one year beginning on October 1.
2 Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5 All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those payments
8in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12 Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Retailers'
14Occupation Tax Act, the Service Occupation Tax Act, the Service
15Use Tax Act was $10,000 or more during the preceding 4 complete
16calendar quarters, he shall file a return with the Department
17each month by the 20th day of the month next following the
18month during which such tax liability is incurred and shall
19make payments to the Department on or before the 7th, 15th,
2022nd and last day of the month during which such liability is
21incurred. On and after October 1, 2000, if the taxpayer's
22average monthly tax liability to the Department under this Act,
23the Retailers' Occupation Tax Act, the Service Occupation Tax
24Act, and the Service Use Tax Act was $20,000 or more during the
25preceding 4 complete calendar quarters, he shall file a return
26with the Department each month by the 20th day of the month

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1next following the month during which such tax liability is
2incurred and shall make payment to the Department on or before
3the 7th, 15th, 22nd and last day of the month during which such
4liability is incurred. If the month during which such tax
5liability is incurred began prior to January 1, 1985, each
6payment shall be in an amount equal to 1/4 of the taxpayer's
7actual liability for the month or an amount set by the
8Department not to exceed 1/4 of the average monthly liability
9of the taxpayer to the Department for the preceding 4 complete
10calendar quarters (excluding the month of highest liability and
11the month of lowest liability in such 4 quarter period). If the
12month during which such tax liability is incurred begins on or
13after January 1, 1985, and prior to January 1, 1987, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 27.5% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1987, and prior to January 1, 1988, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 26.25% of the taxpayer's
21liability for the same calendar month of the preceding year. If
22the month during which such tax liability is incurred begins on
23or after January 1, 1988, and prior to January 1, 1989, or
24begins on or after January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

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1calendar month of the preceding year. If the month during which
2such tax liability is incurred begins on or after January 1,
31989, and prior to January 1, 1996, each payment shall be in an
4amount equal to 22.5% of the taxpayer's actual liability for
5the month or 25% of the taxpayer's liability for the same
6calendar month of the preceding year or 100% of the taxpayer's
7actual liability for the quarter monthly reporting period. The
8amount of such quarter monthly payments shall be credited
9against the final tax liability of the taxpayer's return for
10that month. Before October 1, 2000, once applicable, the
11requirement of the making of quarter monthly payments to the
12Department shall continue until such taxpayer's average
13monthly liability to the Department during the preceding 4
14complete calendar quarters (excluding the month of highest
15liability and the month of lowest liability) is less than
16$9,000, or until such taxpayer's average monthly liability to
17the Department as computed for each calendar quarter of the 4
18preceding complete calendar quarter period is less than
19$10,000. However, if a taxpayer can show the Department that a
20substantial change in the taxpayer's business has occurred
21which causes the taxpayer to anticipate that his average
22monthly tax liability for the reasonably foreseeable future
23will fall below the $10,000 threshold stated above, then such
24taxpayer may petition the Department for change in such
25taxpayer's reporting status. On and after October 1, 2000, once
26applicable, the requirement of the making of quarter monthly

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1payments to the Department shall continue until such taxpayer's
2average monthly liability to the Department during the
3preceding 4 complete calendar quarters (excluding the month of
4highest liability and the month of lowest liability) is less
5than $19,000 or until such taxpayer's average monthly liability
6to the Department as computed for each calendar quarter of the
74 preceding complete calendar quarter period is less than
8$20,000. However, if a taxpayer can show the Department that a
9substantial change in the taxpayer's business has occurred
10which causes the taxpayer to anticipate that his average
11monthly tax liability for the reasonably foreseeable future
12will fall below the $20,000 threshold stated above, then such
13taxpayer may petition the Department for a change in such
14taxpayer's reporting status. The Department shall change such
15taxpayer's reporting status unless it finds that such change is
16seasonal in nature and not likely to be long term. If any such
17quarter monthly payment is not paid at the time or in the
18amount required by this Section, then the taxpayer shall be
19liable for penalties and interest on the difference between the
20minimum amount due and the amount of such quarter monthly
21payment actually and timely paid, except insofar as the
22taxpayer has previously made payments for that month to the
23Department in excess of the minimum payments previously due as
24provided in this Section. The Department shall make reasonable
25rules and regulations to govern the quarter monthly payment
26amount and quarter monthly payment dates for taxpayers who file

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1on other than a calendar monthly basis.
2 If any such payment provided for in this Section exceeds
3the taxpayer's liabilities under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act and the
5Service Use Tax Act, as shown by an original monthly return,
6the Department shall issue to the taxpayer a credit memorandum
7no later than 30 days after the date of payment, which
8memorandum may be submitted by the taxpayer to the Department
9in payment of tax liability subsequently to be remitted by the
10taxpayer to the Department or be assigned by the taxpayer to a
11similar taxpayer under this Act, the Retailers' Occupation Tax
12Act, the Service Occupation Tax Act or the Service Use Tax Act,
13in accordance with reasonable rules and regulations to be
14prescribed by the Department, except that if such excess
15payment is shown on an original monthly return and is made
16after December 31, 1986, no credit memorandum shall be issued,
17unless requested by the taxpayer. If no such request is made,
18the taxpayer may credit such excess payment against tax
19liability subsequently to be remitted by the taxpayer to the
20Department under this Act, the Retailers' Occupation Tax Act,
21the Service Occupation Tax Act or the Service Use Tax Act, in
22accordance with reasonable rules and regulations prescribed by
23the Department. If the Department subsequently determines that
24all or any part of the credit taken was not actually due to the
25taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
26be reduced by 2.1% or 1.75% of the difference between the

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1credit taken and that actually due, and the taxpayer shall be
2liable for penalties and interest on such difference.
3 If the retailer is otherwise required to file a monthly
4return and if the retailer's average monthly tax liability to
5the Department does not exceed $200, the Department may
6authorize his returns to be filed on a quarter annual basis,
7with the return for January, February, and March of a given
8year being due by April 20 of such year; with the return for
9April, May and June of a given year being due by July 20 of such
10year; with the return for July, August and September of a given
11year being due by October 20 of such year, and with the return
12for October, November and December of a given year being due by
13January 20 of the following year.
14 If the retailer is otherwise required to file a monthly or
15quarterly return and if the retailer's average monthly tax
16liability to the Department does not exceed $50, the Department
17may authorize his returns to be filed on an annual basis, with
18the return for a given year being due by January 20 of the
19following year.
20 Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as monthly
22returns.
23 Notwithstanding any other provision in this Act concerning
24the time within which a retailer may file his return, in the
25case of any retailer who ceases to engage in a kind of business
26which makes him responsible for filing returns under this Act,

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4 In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, every retailer selling this kind of
7tangible personal property shall file, with the Department,
8upon a form to be prescribed and supplied by the Department, a
9separate return for each such item of tangible personal
10property which the retailer sells, except that if, in the same
11transaction, (i) a retailer of aircraft, watercraft, motor
12vehicles or trailers transfers more than one aircraft,
13watercraft, motor vehicle or trailer to another aircraft,
14watercraft, motor vehicle or trailer retailer for the purpose
15of resale or (ii) a retailer of aircraft, watercraft, motor
16vehicles, or trailers transfers more than one aircraft,
17watercraft, motor vehicle, or trailer to a purchaser for use as
18a qualifying rolling stock as provided in Section 3-55 of this
19Act, then that seller may report the transfer of all the
20aircraft, watercraft, motor vehicles or trailers involved in
21that transaction to the Department on the same uniform
22invoice-transaction reporting return form. For purposes of
23this Section, "watercraft" means a Class 2, Class 3, or Class 4
24watercraft as defined in Section 3-2 of the Boat Registration
25and Safety Act, a personal watercraft, or any boat equipped
26with an inboard motor.

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1 The transaction reporting return in the case of motor
2vehicles or trailers that are required to be registered with an
3agency of this State, shall be the same document as the Uniform
4Invoice referred to in Section 5-402 of the Illinois Vehicle
5Code and must show the name and address of the seller; the name
6and address of the purchaser; the amount of the selling price
7including the amount allowed by the retailer for traded-in
8property, if any; the amount allowed by the retailer for the
9traded-in tangible personal property, if any, to the extent to
10which Section 2 of this Act allows an exemption for the value
11of traded-in property; the balance payable after deducting such
12trade-in allowance from the total selling price; the amount of
13tax due from the retailer with respect to such transaction; the
14amount of tax collected from the purchaser by the retailer on
15such transaction (or satisfactory evidence that such tax is not
16due in that particular instance, if that is claimed to be the
17fact); the place and date of the sale; a sufficient
18identification of the property sold; such other information as
19is required in Section 5-402 of the Illinois Vehicle Code, and
20such other information as the Department may reasonably
21require.
22 The transaction reporting return in the case of watercraft
23and aircraft must show the name and address of the seller; the
24name and address of the purchaser; the amount of the selling
25price including the amount allowed by the retailer for
26traded-in property, if any; the amount allowed by the retailer

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1for the traded-in tangible personal property, if any, to the
2extent to which Section 2 of this Act allows an exemption for
3the value of traded-in property; the balance payable after
4deducting such trade-in allowance from the total selling price;
5the amount of tax due from the retailer with respect to such
6transaction; the amount of tax collected from the purchaser by
7the retailer on such transaction (or satisfactory evidence that
8such tax is not due in that particular instance, if that is
9claimed to be the fact); the place and date of the sale, a
10sufficient identification of the property sold, and such other
11information as the Department may reasonably require.
12 Such transaction reporting return shall be filed not later
13than 20 days after the date of delivery of the item that is
14being sold, but may be filed by the retailer at any time sooner
15than that if he chooses to do so. The transaction reporting
16return and tax remittance or proof of exemption from the tax
17that is imposed by this Act may be transmitted to the
18Department by way of the State agency with which, or State
19officer with whom, the tangible personal property must be
20titled or registered (if titling or registration is required)
21if the Department and such agency or State officer determine
22that this procedure will expedite the processing of
23applications for title or registration.
24 With each such transaction reporting return, the retailer
25shall remit the proper amount of tax due (or shall submit
26satisfactory evidence that the sale is not taxable if that is

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1the case), to the Department or its agents, whereupon the
2Department shall issue, in the purchaser's name, a tax receipt
3(or a certificate of exemption if the Department is satisfied
4that the particular sale is tax exempt) which such purchaser
5may submit to the agency with which, or State officer with
6whom, he must title or register the tangible personal property
7that is involved (if titling or registration is required) in
8support of such purchaser's application for an Illinois
9certificate or other evidence of title or registration to such
10tangible personal property.
11 No retailer's failure or refusal to remit tax under this
12Act precludes a user, who has paid the proper tax to the
13retailer, from obtaining his certificate of title or other
14evidence of title or registration (if titling or registration
15is required) upon satisfying the Department that such user has
16paid the proper tax (if tax is due) to the retailer. The
17Department shall adopt appropriate rules to carry out the
18mandate of this paragraph.
19 If the user who would otherwise pay tax to the retailer
20wants the transaction reporting return filed and the payment of
21tax or proof of exemption made to the Department before the
22retailer is willing to take these actions and such user has not
23paid the tax to the retailer, such user may certify to the fact
24of such delay by the retailer, and may (upon the Department
25being satisfied of the truth of such certification) transmit
26the information required by the transaction reporting return

HB3714- 21 -LRB098 14370 HLH 49019 b
1and the remittance for tax or proof of exemption directly to
2the Department and obtain his tax receipt or exemption
3determination, in which event the transaction reporting return
4and tax remittance (if a tax payment was required) shall be
5credited by the Department to the proper retailer's account
6with the Department, but without the 2.1% or 1.75% discount
7provided for in this Section being allowed. When the user pays
8the tax directly to the Department, he shall pay the tax in the
9same amount and in the same form in which it would be remitted
10if the tax had been remitted to the Department by the retailer.
11 Where a retailer collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the retailer refunds the selling price thereof to
15the purchaser, such retailer shall also refund, to the
16purchaser, the tax so collected from the purchaser. When filing
17his return for the period in which he refunds such tax to the
18purchaser, the retailer may deduct the amount of the tax so
19refunded by him to the purchaser from any other use tax which
20such retailer may be required to pay or remit to the
21Department, as shown by such return, if the amount of the tax
22to be deducted was previously remitted to the Department by
23such retailer. If the retailer has not previously remitted the
24amount of such tax to the Department, he is entitled to no
25deduction under this Act upon refunding such tax to the
26purchaser.

HB3714- 22 -LRB098 14370 HLH 49019 b
1 Any retailer filing a return under this Section shall also
2include (for the purpose of paying tax thereon) the total tax
3covered by such return upon the selling price of tangible
4personal property purchased by him at retail from a retailer,
5but as to which the tax imposed by this Act was not collected
6from the retailer filing such return, and such retailer shall
7remit the amount of such tax to the Department when filing such
8return.
9 If experience indicates such action to be practicable, the
10Department may prescribe and furnish a combination or joint
11return which will enable retailers, who are required to file
12returns hereunder and also under the Retailers' Occupation Tax
13Act, to furnish all the return information required by both
14Acts on the one form.
15 Where the retailer has more than one business registered
16with the Department under separate registration under this Act,
17such retailer may not file each return that is due as a single
18return covering all such registered businesses, but shall file
19separate returns for each such registered business.
20 Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury which is hereby created, the net
23revenue realized for the preceding month from the 1% tax on
24sales of food for human consumption which is to be consumed off
25the premises where it is sold (other than alcoholic beverages,
26soft drinks and food which has been prepared for immediate

HB3714- 23 -LRB098 14370 HLH 49019 b
1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances and insulin, urine testing
3materials, syringes and needles used by diabetics.
4 Beginning January 1, 1990, each month the Department shall
5pay into the County and Mass Transit District Fund 4% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on the selling price of tangible personal property
8which is purchased outside Illinois at retail from a retailer
9and which is titled or registered by an agency of this State's
10government.
11 Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund, a special
13fund in the State Treasury, 20% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property, other than tangible
16personal property which is purchased outside Illinois at retail
17from a retailer and which is titled or registered by an agency
18of this State's government.
19 Beginning August 1, 2000, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund 100% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol. Beginning
23September 1, 2010, each month the Department shall pay into the
24State and Local Sales Tax Reform Fund 100% of the net revenue
25realized for the preceding month from the 1.25% rate on the
26selling price of sales tax holiday items.

HB3714- 24 -LRB098 14370 HLH 49019 b
1 Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of tangible personal property which is
5purchased outside Illinois at retail from a retailer and which
6is titled or registered by an agency of this State's
7government.
8 Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are is now taxed at 6.25%.
15 Beginning July 1, 2011, each month the Department shall pay
16into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
17realized for the preceding month from the 6.25% general rate on
18the selling price of sorbents used in Illinois in the process
19of sorbent injection as used to comply with the Environmental
20Protection Act or the federal Clean Air Act, but the total
21payment into the Clean Air Act (CAA) Permit Fund under this Act
22and the Retailers' Occupation Tax Act shall not exceed
23$2,000,000 in any fiscal year.
24 Beginning July 1, 2013, each month the Department shall pay
25into the Underground Storage Tank Fund from the proceeds
26collected under this Act, the Service Use Tax Act, the Service

HB3714- 25 -LRB098 14370 HLH 49019 b
1Occupation Tax Act, and the Retailers' Occupation Tax Act an
2amount equal to the average monthly deficit in the Underground
3Storage Tank Fund during the prior year, as certified annually
4by the Illinois Environmental Protection Agency, but the total
5payment into the Underground Storage Tank Fund under this Act,
6the Service Use Tax Act, the Service Occupation Tax Act, and
7the Retailers' Occupation Tax Act shall not exceed $18,000,000
8in any State fiscal year. As used in this paragraph, the
9"average monthly deficit" shall be equal to the difference
10between the average monthly claims for payment by the fund and
11the average monthly revenues deposited into the fund, excluding
12payments made pursuant to this paragraph.
13 Beginning January 1, 2014, the Department shall pay into
14the High Crime Trauma Center Grant Fund 100% of the net revenue
15realized for the preceding month from the 2% surcharge on the
16selling price of firearm ammunition.
17 Of the remainder of the moneys received by the Department
18pursuant to this Act, (a) 1.75% thereof shall be paid into the
19Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
20and after July 1, 1989, 3.8% thereof shall be paid into the
21Build Illinois Fund; provided, however, that if in any fiscal
22year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
23may be, of the moneys received by the Department and required
24to be paid into the Build Illinois Fund pursuant to Section 3
25of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
26Act, Section 9 of the Service Use Tax Act, and Section 9 of the

HB3714- 26 -LRB098 14370 HLH 49019 b
1Service Occupation Tax Act, such Acts being hereinafter called
2the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
3may be, of moneys being hereinafter called the "Tax Act
4Amount", and (2) the amount transferred to the Build Illinois
5Fund from the State and Local Sales Tax Reform Fund shall be
6less than the Annual Specified Amount (as defined in Section 3
7of the Retailers' Occupation Tax Act), an amount equal to the
8difference shall be immediately paid into the Build Illinois
9Fund from other moneys received by the Department pursuant to
10the Tax Acts; and further provided, that if on the last
11business day of any month the sum of (1) the Tax Act Amount
12required to be deposited into the Build Illinois Bond Account
13in the Build Illinois Fund during such month and (2) the amount
14transferred during such month to the Build Illinois Fund from
15the State and Local Sales Tax Reform Fund shall have been less
16than 1/12 of the Annual Specified Amount, an amount equal to
17the difference shall be immediately paid into the Build
18Illinois Fund from other moneys received by the Department
19pursuant to the Tax Acts; and, further provided, that in no
20event shall the payments required under the preceding proviso
21result in aggregate payments into the Build Illinois Fund
22pursuant to this clause (b) for any fiscal year in excess of
23the greater of (i) the Tax Act Amount or (ii) the Annual
24Specified Amount for such fiscal year; and, further provided,
25that the amounts payable into the Build Illinois Fund under
26this clause (b) shall be payable only until such time as the

HB3714- 27 -LRB098 14370 HLH 49019 b
1aggregate amount on deposit under each trust indenture securing
2Bonds issued and outstanding pursuant to the Build Illinois
3Bond Act is sufficient, taking into account any future
4investment income, to fully provide, in accordance with such
5indenture, for the defeasance of or the payment of the
6principal of, premium, if any, and interest on the Bonds
7secured by such indenture and on any Bonds expected to be
8issued thereafter and all fees and costs payable with respect
9thereto, all as certified by the Director of the Bureau of the
10Budget (now Governor's Office of Management and Budget). If on
11the last business day of any month in which Bonds are
12outstanding pursuant to the Build Illinois Bond Act, the
13aggregate of the moneys deposited in the Build Illinois Bond
14Account in the Build Illinois Fund in such month shall be less
15than the amount required to be transferred in such month from
16the Build Illinois Bond Account to the Build Illinois Bond
17Retirement and Interest Fund pursuant to Section 13 of the
18Build Illinois Bond Act, an amount equal to such deficiency
19shall be immediately paid from other moneys received by the
20Department pursuant to the Tax Acts to the Build Illinois Fund;
21provided, however, that any amounts paid to the Build Illinois
22Fund in any fiscal year pursuant to this sentence shall be
23deemed to constitute payments pursuant to clause (b) of the
24preceding sentence and shall reduce the amount otherwise
25payable for such fiscal year pursuant to clause (b) of the
26preceding sentence. The moneys received by the Department

HB3714- 28 -LRB098 14370 HLH 49019 b
1pursuant to this Act and required to be deposited into the
2Build Illinois Fund are subject to the pledge, claim and charge
3set forth in Section 12 of the Build Illinois Bond Act.
4 Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993 $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

HB3714- 29 -LRB098 14370 HLH 49019 b
12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

HB3714- 30 -LRB098 14370 HLH 49019 b
12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13 Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26 Subject to payment of amounts into the Build Illinois Fund

HB3714- 31 -LRB098 14370 HLH 49019 b
1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning July 1, 1993 and ending on September 30,
42013, the Department shall each month pay into the Illinois Tax
5Increment Fund 0.27% of 80% of the net revenue realized for the
6preceding month from the 6.25% general rate on the selling
7price of tangible personal property.
8 Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning with the receipt of the first report of
12taxes paid by an eligible business and continuing for a 25-year
13period, the Department shall each month pay into the Energy
14Infrastructure Fund 80% of the net revenue realized from the
156.25% general rate on the selling price of Illinois-mined coal
16that was sold to an eligible business. For purposes of this
17paragraph, the term "eligible business" means a new electric
18generating facility certified pursuant to Section 605-332 of
19the Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21 Of the remainder of the moneys received by the Department
22pursuant to this Act, 75% thereof shall be paid into the State
23Treasury and 25% shall be reserved in a special account and
24used only for the transfer to the Common School Fund as part of
25the monthly transfer from the General Revenue Fund in
26accordance with Section 8a of the State Finance Act.

HB3714- 32 -LRB098 14370 HLH 49019 b
1 As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8 Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12 For greater simplicity of administration, manufacturers,
13importers and wholesalers whose products are sold at retail in
14Illinois by numerous retailers, and who wish to do so, may
15assume the responsibility for accounting and paying to the
16Department all tax accruing under this Act with respect to such
17sales, if the retailers who are affected do not make written
18objection to the Department to this arrangement.
19(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
20eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
21revised 9-9-13.)
22 Section 15. The Service Use Tax Act is amended by changing
23Sections 3-10 and 9 as follows:
24 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)

HB3714- 33 -LRB098 14370 HLH 49019 b
1 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the selling price of tangible personal property transferred as
4an incident to the sale of service, but, for the purpose of
5computing this tax, in no event shall the selling price be less
6than the cost price of the property to the serviceman.
7 Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the selling price
13of property transferred as an incident to the sale of service
14on or after January 1, 1990, and before July 1, 2003, (ii) 80%
15of the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2018, and (iii) 100% of the selling price
18thereafter. If, at any time, however, the tax under this Act on
19sales of gasohol, as defined in the Use Tax Act, is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of gasohol made during that time.
22 With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the selling price of property transferred as an incident to
25the sale of service on or after July 1, 2003 and on or before
26December 31, 2018 but applies to 100% of the selling price

HB3714- 34 -LRB098 14370 HLH 49019 b
1thereafter.
2 With respect to biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel, the
4tax imposed by this Act applies to (i) 80% of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2018 and
7(ii) 100% of the proceeds of the selling price thereafter. If,
8at any time, however, the tax under this Act on sales of
9biodiesel blends, as defined in the Use Tax Act, with no less
10than 1% and no more than 10% biodiesel is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of biodiesel blends with no less than 1%
13and no more than 10% biodiesel made during that time.
14 With respect to 100% biodiesel, as defined in the Use Tax
15Act, and biodiesel blends, as defined in the Use Tax Act, with
16more than 10% but no more than 99% biodiesel, the tax imposed
17by this Act does not apply to the proceeds of the selling price
18of property transferred as an incident to the sale of service
19on or after July 1, 2003 and on or before December 31, 2018 but
20applies to 100% of the selling price thereafter.
21 At the election of any registered serviceman made for each
22fiscal year, sales of service in which the aggregate annual
23cost price of tangible personal property transferred as an
24incident to the sales of service is less than 35%, or 75% in
25the case of servicemen transferring prescription drugs or
26servicemen engaged in graphic arts production, of the aggregate

HB3714- 35 -LRB098 14370 HLH 49019 b
1annual total gross receipts from all sales of service, the tax
2imposed by this Act shall be based on the serviceman's cost
3price of the tangible personal property transferred as an
4incident to the sale of those services.
5 The tax shall be imposed at the rate of 1% on food prepared
6for immediate consumption and transferred incident to a sale of
7service subject to this Act or the Service Occupation Tax Act
8by an entity licensed under the Hospital Licensing Act, the
9Nursing Home Care Act, the ID/DD Community Care Act, the
10Specialized Mental Health Rehabilitation Act of 2013, or the
11Child Care Act of 1969. The tax shall also be imposed at the
12rate of 1% on food for human consumption that is to be consumed
13off the premises where it is sold (other than alcoholic
14beverages, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph) and prescription and nonprescription medicines,
17drugs, medical appliances, modifications to a motor vehicle for
18the purpose of rendering it usable by a disabled person, and
19insulin, urine testing materials, syringes, and needles used by
20diabetics, for human use. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

HB3714- 36 -LRB098 14370 HLH 49019 b
1bottle, can, carton, or container, regardless of size; but
2"soft drinks" does not include coffee, tea, non-carbonated
3water, infant formula, milk or milk products as defined in the
4Grade A Pasteurized Milk and Milk Products Act, or drinks
5containing 50% or more natural fruit or vegetable juice.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12 Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24 Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

HB3714- 37 -LRB098 14370 HLH 49019 b
1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or other
4ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7 Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
19label includes:
20 (A) A "Drug Facts" panel; or
21 (B) A statement of the "active ingredient(s)" with a
22 list of those ingredients contained in the compound,
23 substance or preparation.
24 Beginning on January 1, 2014 (the effective date of Public
25Act 98-122) this amendatory Act of the 98th General Assembly,
26"prescription and nonprescription medicines and drugs"

HB3714- 38 -LRB098 14370 HLH 49019 b
1includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Pilot Program Act.
4 Beginning January 1, 2014, in addition to all other rates
5of tax imposed under this Act, a surcharge of 2% is imposed on
6the selling price of firearm ammunition. "Firearm" and "firearm
7ammunition" have the meanings ascribed to them in Section 1.1
8of the Firearm Owners Identification Card Act.
9 If the property that is acquired from a serviceman is
10acquired outside Illinois and used outside Illinois before
11being brought to Illinois for use here and is taxable under
12this Act, the "selling price" on which the tax is computed
13shall be reduced by an amount that represents a reasonable
14allowance for depreciation for the period of prior out-of-state
15use.
16(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
17eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
188-9-13.)
19 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
20 Sec. 9. Each serviceman required or authorized to collect
21the tax herein imposed shall pay to the Department the amount
22of such tax (except as otherwise provided) at the time when he
23is required to file his return for the period during which such
24tax was collected, less a discount of 2.1% prior to January 1,
251990 and 1.75% on and after January 1, 1990, or $5 per calendar

HB3714- 39 -LRB098 14370 HLH 49019 b
1year, whichever is greater, which is allowed to reimburse the
2serviceman for expenses incurred in collecting the tax, keeping
3records, preparing and filing returns, remitting the tax and
4supplying data to the Department on request. The Department may
5disallow the discount for servicemen whose certificate of
6registration is revoked at the time the return is filed, but
7only if the Department's decision to revoke the certificate of
8registration has become final. A serviceman need not remit that
9part of any tax collected by him to the extent that he is
10required to pay and does pay the tax imposed by the Service
11Occupation Tax Act with respect to his sale of service
12involving the incidental transfer by him of the same property.
13 Except as provided hereinafter in this Section, on or
14before the twentieth day of each calendar month, such
15serviceman shall file a return for the preceding calendar month
16in accordance with reasonable Rules and Regulations to be
17promulgated by the Department. Such return shall be filed on a
18form prescribed by the Department and shall contain such
19information as the Department may reasonably require.
20 The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

HB3714- 40 -LRB098 14370 HLH 49019 b
1 1. The name of the seller;
2 2. The address of the principal place of business from
3 which he engages in business as a serviceman in this State;
4 3. The total amount of taxable receipts received by him
5 during the preceding calendar month, including receipts
6 from charge and time sales, but less all deductions allowed
7 by law;
8 4. The amount of credit provided in Section 2d of this
9 Act;
10 5. The amount of tax due;
11 5-5. The signature of the taxpayer; and
12 6. Such other reasonable information as the Department
13 may require.
14 If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18 Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

HB3714- 41 -LRB098 14370 HLH 49019 b
1funds transfer. Beginning October 1, 2000, a taxpayer who has
2an annual tax liability of $200,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. The term "annual tax liability" shall be the
5sum of the taxpayer's liabilities under this Act, and under all
6other State and local occupation and use tax laws administered
7by the Department, for the immediately preceding calendar year.
8The term "average monthly tax liability" means the sum of the
9taxpayer's liabilities under this Act, and under all other
10State and local occupation and use tax laws administered by the
11Department, for the immediately preceding calendar year
12divided by 12. Beginning on October 1, 2002, a taxpayer who has
13a tax liability in the amount set forth in subsection (b) of
14Section 2505-210 of the Department of Revenue Law shall make
15all payments required by rules of the Department by electronic
16funds transfer.
17 Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make payments
19by electronic funds transfer. All taxpayers required to make
20payments by electronic funds transfer shall make those payments
21for a minimum of one year beginning on October 1.
22 Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25 All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

HB3714- 42 -LRB098 14370 HLH 49019 b
1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3 The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6 If the serviceman is otherwise required to file a monthly
7return and if the serviceman's average monthly tax liability to
8the Department does not exceed $200, the Department may
9authorize his returns to be filed on a quarter annual basis,
10with the return for January, February and March of a given year
11being due by April 20 of such year; with the return for April,
12May and June of a given year being due by July 20 of such year;
13with the return for July, August and September of a given year
14being due by October 20 of such year, and with the return for
15October, November and December of a given year being due by
16January 20 of the following year.
17 If the serviceman is otherwise required to file a monthly
18or quarterly return and if the serviceman's average monthly tax
19liability to the Department does not exceed $50, the Department
20may authorize his returns to be filed on an annual basis, with
21the return for a given year being due by January 20 of the
22following year.
23 Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as monthly
25returns.
26 Notwithstanding any other provision in this Act concerning

HB3714- 43 -LRB098 14370 HLH 49019 b
1the time within which a serviceman may file his return, in the
2case of any serviceman who ceases to engage in a kind of
3business which makes him responsible for filing returns under
4this Act, such serviceman shall file a final return under this
5Act with the Department not more than 1 month after
6discontinuing such business.
7 Where a serviceman collects the tax with respect to the
8selling price of property which he sells and the purchaser
9thereafter returns such property and the serviceman refunds the
10selling price thereof to the purchaser, such serviceman shall
11also refund, to the purchaser, the tax so collected from the
12purchaser. When filing his return for the period in which he
13refunds such tax to the purchaser, the serviceman may deduct
14the amount of the tax so refunded by him to the purchaser from
15any other Service Use Tax, Service Occupation Tax, retailers'
16occupation tax or use tax which such serviceman may be required
17to pay or remit to the Department, as shown by such return,
18provided that the amount of the tax to be deducted shall
19previously have been remitted to the Department by such
20serviceman. If the serviceman shall not previously have
21remitted the amount of such tax to the Department, he shall be
22entitled to no deduction hereunder upon refunding such tax to
23the purchaser.
24 Any serviceman filing a return hereunder shall also include
25the total tax upon the selling price of tangible personal
26property purchased for use by him as an incident to a sale of

HB3714- 44 -LRB098 14370 HLH 49019 b
1service, and such serviceman shall remit the amount of such tax
2to the Department when filing such return.
3 If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable servicemen, who are required to file
6returns hereunder and also under the Service Occupation Tax
7Act, to furnish all the return information required by both
8Acts on the one form.
9 Where the serviceman has more than one business registered
10with the Department under separate registration hereunder,
11such serviceman shall not file each return that is due as a
12single return covering all such registered businesses, but
13shall file separate returns for each such registered business.
14 Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Tax Reform Fund, a special fund in
16the State Treasury, the net revenue realized for the preceding
17month from the 1% tax on sales of food for human consumption
18which is to be consumed off the premises where it is sold
19(other than alcoholic beverages, soft drinks and food which has
20been prepared for immediate consumption) and prescription and
21nonprescription medicines, drugs, medical appliances and
22insulin, urine testing materials, syringes and needles used by
23diabetics.
24 Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 20% of the
26net revenue realized for the preceding month from the 6.25%

HB3714- 45 -LRB098 14370 HLH 49019 b
1general rate on transfers of tangible personal property, other
2than tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by an agency of this State's government.
5 Beginning August 1, 2000, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund 100% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9 Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15are is now taxed at 6.25%.
16 Beginning July 1, 2013, each month the Department shall pay
17into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Use Tax Act, the Service Occupation Tax Act, and the
25Retailers' Occupation Tax Act shall not exceed $18,000,000 in
26any State fiscal year. As used in this paragraph, the "average

HB3714- 46 -LRB098 14370 HLH 49019 b
1monthly deficit" shall be equal to the difference between the
2average monthly claims for payment by the fund and the average
3monthly revenues deposited into the fund, excluding payments
4made pursuant to this paragraph.
5 Beginning January 1, 2014, the Department shall pay into
6the High Crime Trauma Center Grant Fund 100% of the net revenue
7realized for the preceding month from the 2% surcharge on the
8selling price of firearm ammunition.
9 Of the remainder of the moneys received by the Department
10pursuant to this Act, (a) 1.75% thereof shall be paid into the
11Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
12and after July 1, 1989, 3.8% thereof shall be paid into the
13Build Illinois Fund; provided, however, that if in any fiscal
14year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
15may be, of the moneys received by the Department and required
16to be paid into the Build Illinois Fund pursuant to Section 3
17of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
18Act, Section 9 of the Service Use Tax Act, and Section 9 of the
19Service Occupation Tax Act, such Acts being hereinafter called
20the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
21may be, of moneys being hereinafter called the "Tax Act
22Amount", and (2) the amount transferred to the Build Illinois
23Fund from the State and Local Sales Tax Reform Fund shall be
24less than the Annual Specified Amount (as defined in Section 3
25of the Retailers' Occupation Tax Act), an amount equal to the
26difference shall be immediately paid into the Build Illinois

HB3714- 47 -LRB098 14370 HLH 49019 b
1Fund from other moneys received by the Department pursuant to
2the Tax Acts; and further provided, that if on the last
3business day of any month the sum of (1) the Tax Act Amount
4required to be deposited into the Build Illinois Bond Account
5in the Build Illinois Fund during such month and (2) the amount
6transferred during such month to the Build Illinois Fund from
7the State and Local Sales Tax Reform Fund shall have been less
8than 1/12 of the Annual Specified Amount, an amount equal to
9the difference shall be immediately paid into the Build
10Illinois Fund from other moneys received by the Department
11pursuant to the Tax Acts; and, further provided, that in no
12event shall the payments required under the preceding proviso
13result in aggregate payments into the Build Illinois Fund
14pursuant to this clause (b) for any fiscal year in excess of
15the greater of (i) the Tax Act Amount or (ii) the Annual
16Specified Amount for such fiscal year; and, further provided,
17that the amounts payable into the Build Illinois Fund under
18this clause (b) shall be payable only until such time as the
19aggregate amount on deposit under each trust indenture securing
20Bonds issued and outstanding pursuant to the Build Illinois
21Bond Act is sufficient, taking into account any future
22investment income, to fully provide, in accordance with such
23indenture, for the defeasance of or the payment of the
24principal of, premium, if any, and interest on the Bonds
25secured by such indenture and on any Bonds expected to be
26issued thereafter and all fees and costs payable with respect

HB3714- 48 -LRB098 14370 HLH 49019 b
1thereto, all as certified by the Director of the Bureau of the
2Budget (now Governor's Office of Management and Budget). If on
3the last business day of any month in which Bonds are
4outstanding pursuant to the Build Illinois Bond Act, the
5aggregate of the moneys deposited in the Build Illinois Bond
6Account in the Build Illinois Fund in such month shall be less
7than the amount required to be transferred in such month from
8the Build Illinois Bond Account to the Build Illinois Bond
9Retirement and Interest Fund pursuant to Section 13 of the
10Build Illinois Bond Act, an amount equal to such deficiency
11shall be immediately paid from other moneys received by the
12Department pursuant to the Tax Acts to the Build Illinois Fund;
13provided, however, that any amounts paid to the Build Illinois
14Fund in any fiscal year pursuant to this sentence shall be
15deemed to constitute payments pursuant to clause (b) of the
16preceding sentence and shall reduce the amount otherwise
17payable for such fiscal year pursuant to clause (b) of the
18preceding sentence. The moneys received by the Department
19pursuant to this Act and required to be deposited into the
20Build Illinois Fund are subject to the pledge, claim and charge
21set forth in Section 12 of the Build Illinois Bond Act.
22 Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

HB3714- 49 -LRB098 14370 HLH 49019 b
1provided under Section 8.25f of the State Finance Act, but not
2in excess of the sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993 $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

HB3714- 50 -LRB098 14370 HLH 49019 b
12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021246,000,000
132022260,000,000
142023275,000,000
152024 275,000,000
162025 275,000,000
172026 279,000,000
182027 292,000,000
192028 307,000,000
202029 322,000,000
212030 338,000,000
222031 350,000,000
232032 350,000,000
24and
25each fiscal year
26thereafter that bonds

HB3714- 51 -LRB098 14370 HLH 49019 b
1are outstanding under
2Section 13.2 of the
3Metropolitan Pier and
4Exposition Authority Act,
5but not after fiscal year 2060.
6 Beginning July 20, 1993 and in each month of each fiscal
7year thereafter, one-eighth of the amount requested in the
8certificate of the Chairman of the Metropolitan Pier and
9Exposition Authority for that fiscal year, less the amount
10deposited into the McCormick Place Expansion Project Fund by
11the State Treasurer in the respective month under subsection
12(g) of Section 13 of the Metropolitan Pier and Exposition
13Authority Act, plus cumulative deficiencies in the deposits
14required under this Section for previous months and years,
15shall be deposited into the McCormick Place Expansion Project
16Fund, until the full amount requested for the fiscal year, but
17not in excess of the amount specified above as "Total Deposit",
18has been deposited.
19 Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois Tax
24Increment Fund 0.27% of 80% of the net revenue realized for the
25preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

HB3714- 52 -LRB098 14370 HLH 49019 b
1 Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a 25-year
6period, the Department shall each month pay into the Energy
7Infrastructure Fund 80% of the net revenue realized from the
86.25% general rate on the selling price of Illinois-mined coal
9that was sold to an eligible business. For purposes of this
10paragraph, the term "eligible business" means a new electric
11generating facility certified pursuant to Section 605-332 of
12the Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14 Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the
16General Revenue Fund of the State Treasury and 25% shall be
17reserved in a special account and used only for the transfer to
18the Common School Fund as part of the monthly transfer from the
19General Revenue Fund in accordance with Section 8a of the State
20Finance Act.
21 As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

HB3714- 53 -LRB098 14370 HLH 49019 b
1transfer is no longer required and shall not be made.
2 Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
798-298, eff. 8-9-13; 98-496, eff. 1-1-14; revised 9-9-13.)
8 Section 20. The Service Occupation Tax Act is amended by
9changing Sections 3-10 and 9 as follows:
10 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
11 Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the "selling price", as defined in Section 2 of the Service Use
14Tax Act, of the tangible personal property. For the purpose of
15computing this tax, in no event shall the "selling price" be
16less than the cost price to the serviceman of the tangible
17personal property transferred. The selling price of each item
18of tangible personal property transferred as an incident of a
19sale of service may be shown as a distinct and separate item on
20the serviceman's billing to the service customer. If the
21selling price is not so shown, the selling price of the
22tangible personal property is deemed to be 50% of the
23serviceman's entire billing to the service customer. When,
24however, a serviceman contracts to design, develop, and produce

HB3714- 54 -LRB098 14370 HLH 49019 b
1special order machinery or equipment, the tax imposed by this
2Act shall be based on the serviceman's cost price of the
3tangible personal property transferred incident to the
4completion of the contract.
5 Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act shall apply to (i) 70% of the cost
11price of property transferred as an incident to the sale of
12service on or after January 1, 1990, and before July 1, 2003,
13(ii) 80% of the selling price of property transferred as an
14incident to the sale of service on or after July 1, 2003 and on
15or before December 31, 2018, and (iii) 100% of the cost price
16thereafter. If, at any time, however, the tax under this Act on
17sales of gasohol, as defined in the Use Tax Act, is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of gasohol made during that time.
20 With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2018 but applies to 100% of the selling price
25thereafter.
26 With respect to biodiesel blends, as defined in the Use Tax

HB3714- 55 -LRB098 14370 HLH 49019 b
1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 and
5(ii) 100% of the proceeds of the selling price thereafter. If,
6at any time, however, the tax under this Act on sales of
7biodiesel blends, as defined in the Use Tax Act, with no less
8than 1% and no more than 10% biodiesel is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of biodiesel blends with no less than 1%
11and no more than 10% biodiesel made during that time.
12 With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel material, the tax
15imposed by this Act does not apply to the proceeds of the
16selling price of property transferred as an incident to the
17sale of service on or after July 1, 2003 and on or before
18December 31, 2018 but applies to 100% of the selling price
19thereafter.
20 At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the aggregate
26annual total gross receipts from all sales of service, the tax

HB3714- 56 -LRB098 14370 HLH 49019 b
1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred incident to
3the sale of those services.
4 The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale of
6service subject to this Act or the Service Occupation Tax Act
7by an entity licensed under the Hospital Licensing Act, the
8Nursing Home Care Act, the ID/DD Community Care Act, the
9Specialized Mental Health Rehabilitation Act of 2013, or the
10Child Care Act of 1969. The tax shall also be imposed at the
11rate of 1% on food for human consumption that is to be consumed
12off the premises where it is sold (other than alcoholic
13beverages, soft drinks, and food that has been prepared for
14immediate consumption and is not otherwise included in this
15paragraph) and prescription and nonprescription medicines,
16drugs, medical appliances, modifications to a motor vehicle for
17the purpose of rendering it usable by a disabled person, and
18insulin, urine testing materials, syringes, and needles used by
19diabetics, for human use. For the purposes of this Section,
20until September 1, 2009: the term "soft drinks" means any
21complete, finished, ready-to-use, non-alcoholic drink, whether
22carbonated or not, including but not limited to soda water,
23cola, fruit juice, vegetable juice, carbonated water, and all
24other preparations commonly known as soft drinks of whatever
25kind or description that are contained in any closed or sealed
26can, carton, or container, regardless of size; but "soft

HB3714- 57 -LRB098 14370 HLH 49019 b
1drinks" does not include coffee, tea, non-carbonated water,
2infant formula, milk or milk products as defined in the Grade A
3Pasteurized Milk and Milk Products Act, or drinks containing
450% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "soft drinks" means non-alcoholic
7beverages that contain natural or artificial sweeteners. "Soft
8drinks" do not include beverages that contain milk or milk
9products, soy, rice or similar milk substitutes, or greater
10than 50% of vegetable or fruit juice by volume.
11 Until August 1, 2009, and notwithstanding any other
12provisions of this Act, "food for human consumption that is to
13be consumed off the premises where it is sold" includes all
14food sold through a vending machine, except soft drinks and
15food products that are dispensed hot from a vending machine,
16regardless of the location of the vending machine. Beginning
17August 1, 2009, and notwithstanding any other provisions of
18this Act, "food for human consumption that is to be consumed
19off the premises where it is sold" includes all food sold
20through a vending machine, except soft drinks, candy, and food
21products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine.
23 Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "food for human consumption that
25is to be consumed off the premises where it is sold" does not
26include candy. For purposes of this Section, "candy" means a

HB3714- 58 -LRB098 14370 HLH 49019 b
1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or other
3ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
18label includes:
19 (A) A "Drug Facts" panel; or
20 (B) A statement of the "active ingredient(s)" with a
21 list of those ingredients contained in the compound,
22 substance or preparation.
23 Beginning on January 1, 2014 (the effective date of Public
24Act 98-122) this amendatory Act of the 98th General Assembly,
25"prescription and nonprescription medicines and drugs"
26includes medical cannabis purchased from a registered

HB3714- 59 -LRB098 14370 HLH 49019 b
1dispensing organization under the Compassionate Use of Medical
2Cannabis Pilot Program Act.
3 Beginning January 1, 2014, in addition to all other rates
4of tax imposed under this Act, a surcharge of 2% is imposed on
5the selling price of firearm ammunition. "Firearm" and "firearm
6ammunition" have the meanings ascribed to them in Section 1.1
7of the Firearm Owners Identification Card Act.
8(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
9eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
108-9-13.)
11 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
12 Sec. 9. Each serviceman required or authorized to collect
13the tax herein imposed shall pay to the Department the amount
14of such tax at the time when he is required to file his return
15for the period during which such tax was collectible, less a
16discount of 2.1% prior to January 1, 1990, and 1.75% on and
17after January 1, 1990, or $5 per calendar year, whichever is
18greater, which is allowed to reimburse the serviceman for
19expenses incurred in collecting the tax, keeping records,
20preparing and filing returns, remitting the tax and supplying
21data to the Department on request. The Department may disallow
22the discount for servicemen whose certificate of registration
23is revoked at the time the return is filed, but only if the
24Department's decision to revoke the certificate of
25registration has become final.

HB3714- 60 -LRB098 14370 HLH 49019 b
1 Where such tangible personal property is sold under a
2conditional sales contract, or under any other form of sale
3wherein the payment of the principal sum, or a part thereof, is
4extended beyond the close of the period for which the return is
5filed, the serviceman, in collecting the tax may collect, for
6each tax return period, only the tax applicable to the part of
7the selling price actually received during such tax return
8period.
9 Except as provided hereinafter in this Section, on or
10before the twentieth day of each calendar month, such
11serviceman shall file a return for the preceding calendar month
12in accordance with reasonable rules and regulations to be
13promulgated by the Department of Revenue. Such return shall be
14filed on a form prescribed by the Department and shall contain
15such information as the Department may reasonably require.
16 The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23 1. The name of the seller;
24 2. The address of the principal place of business from
25 which he engages in business as a serviceman in this State;
26 3. The total amount of taxable receipts received by him

HB3714- 61 -LRB098 14370 HLH 49019 b
1 during the preceding calendar month, including receipts
2 from charge and time sales, but less all deductions allowed
3 by law;
4 4. The amount of credit provided in Section 2d of this
5 Act;
6 5. The amount of tax due;
7 5-5. The signature of the taxpayer; and
8 6. Such other reasonable information as the Department
9 may require.
10 If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14 Prior to October 1, 2003, and on and after September 1,
152004 a serviceman may accept a Manufacturer's Purchase Credit
16certification from a purchaser in satisfaction of Service Use
17Tax as provided in Section 3-70 of the Service Use Tax Act if
18the purchaser provides the appropriate documentation as
19required by Section 3-70 of the Service Use Tax Act. A
20Manufacturer's Purchase Credit certification, accepted prior
21to October 1, 2003 or on or after September 1, 2004 by a
22serviceman as provided in Section 3-70 of the Service Use Tax
23Act, may be used by that serviceman to satisfy Service
24Occupation Tax liability in the amount claimed in the
25certification, not to exceed 6.25% of the receipts subject to
26tax from a qualifying purchase. A Manufacturer's Purchase

HB3714- 62 -LRB098 14370 HLH 49019 b
1Credit reported on any original or amended return filed under
2this Act after October 20, 2003 for reporting periods prior to
3September 1, 2004 shall be disallowed. Manufacturer's Purchase
4Credit reported on annual returns due on or after January 1,
52005 will be disallowed for periods prior to September 1, 2004.
6No Manufacturer's Purchase Credit may be used after September
730, 2003 through August 31, 2004 to satisfy any tax liability
8imposed under this Act, including any audit liability.
9 If the serviceman's average monthly tax liability to the
10Department does not exceed $200, the Department may authorize
11his returns to be filed on a quarter annual basis, with the
12return for January, February and March of a given year being
13due by April 20 of such year; with the return for April, May
14and June of a given year being due by July 20 of such year; with
15the return for July, August and September of a given year being
16due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19 If the serviceman's average monthly tax liability to the
20Department does not exceed $50, the Department may authorize
21his returns to be filed on an annual basis, with the return for
22a given year being due by January 20 of the following year.
23 Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as monthly
25returns.
26 Notwithstanding any other provision in this Act concerning

HB3714- 63 -LRB098 14370 HLH 49019 b
1the time within which a serviceman may file his return, in the
2case of any serviceman who ceases to engage in a kind of
3business which makes him responsible for filing returns under
4this Act, such serviceman shall file a final return under this
5Act with the Department not more than 1 month after
6discontinuing such business.
7 Beginning October 1, 1993, a taxpayer who has an average
8monthly tax liability of $150,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. Beginning October 1, 1994, a taxpayer who has
11an average monthly tax liability of $100,000 or more shall make
12all payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1995, a taxpayer who has
14an average monthly tax liability of $50,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 2000, a taxpayer who has
17an annual tax liability of $200,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. The term "annual tax liability" shall be the
20sum of the taxpayer's liabilities under this Act, and under all
21other State and local occupation and use tax laws administered
22by the Department, for the immediately preceding calendar year.
23The term "average monthly tax liability" means the sum of the
24taxpayer's liabilities under this Act, and under all other
25State and local occupation and use tax laws administered by the
26Department, for the immediately preceding calendar year

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1divided by 12. Beginning on October 1, 2002, a taxpayer who has
2a tax liability in the amount set forth in subsection (b) of
3Section 2505-210 of the Department of Revenue Law shall make
4all payments required by rules of the Department by electronic
5funds transfer.
6 Before August 1 of each year beginning in 1993, the
7Department shall notify all taxpayers required to make payments
8by electronic funds transfer. All taxpayers required to make
9payments by electronic funds transfer shall make those payments
10for a minimum of one year beginning on October 1.
11 Any taxpayer not required to make payments by electronic
12funds transfer may make payments by electronic funds transfer
13with the permission of the Department.
14 All taxpayers required to make payment by electronic funds
15transfer and any taxpayers authorized to voluntarily make
16payments by electronic funds transfer shall make those payments
17in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to
19effectuate a program of electronic funds transfer and the
20requirements of this Section.
21 Where a serviceman collects the tax with respect to the
22selling price of tangible personal property which he sells and
23the purchaser thereafter returns such tangible personal
24property and the serviceman refunds the selling price thereof
25to the purchaser, such serviceman shall also refund, to the
26purchaser, the tax so collected from the purchaser. When filing

HB3714- 65 -LRB098 14370 HLH 49019 b
1his return for the period in which he refunds such tax to the
2purchaser, the serviceman may deduct the amount of the tax so
3refunded by him to the purchaser from any other Service
4Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
5Use Tax which such serviceman may be required to pay or remit
6to the Department, as shown by such return, provided that the
7amount of the tax to be deducted shall previously have been
8remitted to the Department by such serviceman. If the
9serviceman shall not previously have remitted the amount of
10such tax to the Department, he shall be entitled to no
11deduction hereunder upon refunding such tax to the purchaser.
12 If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable servicemen, who are required to file
15returns hereunder and also under the Retailers' Occupation Tax
16Act, the Use Tax Act or the Service Use Tax Act, to furnish all
17the return information required by all said Acts on the one
18form.
19 Where the serviceman has more than one business registered
20with the Department under separate registrations hereunder,
21such serviceman shall file separate returns for each registered
22business.
23 Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund the revenue realized for
25the preceding month from the 1% tax on sales of food for human
26consumption which is to be consumed off the premises where it

HB3714- 66 -LRB098 14370 HLH 49019 b
1is sold (other than alcoholic beverages, soft drinks and food
2which has been prepared for immediate consumption) and
3prescription and nonprescription medicines, drugs, medical
4appliances and insulin, urine testing materials, syringes and
5needles used by diabetics.
6 Beginning January 1, 1990, each month the Department shall
7pay into the County and Mass Transit District Fund 4% of the
8revenue realized for the preceding month from the 6.25% general
9rate.
10 Beginning August 1, 2000, each month the Department shall
11pay into the County and Mass Transit District Fund 20% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol.
14 Beginning January 1, 1990, each month the Department shall
15pay into the Local Government Tax Fund 16% of the revenue
16realized for the preceding month from the 6.25% general rate on
17transfers of tangible personal property.
18 Beginning August 1, 2000, each month the Department shall
19pay into the Local Government Tax Fund 80% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of motor fuel and gasohol.
22 Beginning October 1, 2009, each month the Department shall
23pay into the Capital Projects Fund an amount that is equal to
24an amount estimated by the Department to represent 80% of the
25net revenue realized for the preceding month from the sale of
26candy, grooming and hygiene products, and soft drinks that had

HB3714- 67 -LRB098 14370 HLH 49019 b
1been taxed at a rate of 1% prior to September 1, 2009 but that
2are is now taxed at 6.25%.
3 Beginning July 1, 2013, each month the Department shall pay
4into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Use Tax Act, the Service Use Tax
6Act, and the Retailers' Occupation Tax Act an amount equal to
7the average monthly deficit in the Underground Storage Tank
8Fund during the prior year, as certified annually by the
9Illinois Environmental Protection Agency, but the total
10payment into the Underground Storage Tank Fund under this Act,
11the Use Tax Act, the Service Use Tax Act, and the Retailers'
12Occupation Tax Act shall not exceed $18,000,000 in any State
13fiscal year. As used in this paragraph, the "average monthly
14deficit" shall be equal to the difference between the average
15monthly claims for payment by the fund and the average monthly
16revenues deposited into the fund, excluding payments made
17pursuant to this paragraph.
18 Beginning January 1, 2014, the Department shall pay into
19the High Crime Trauma Center Grant Fund 100% of the net revenue
20realized for the preceding month from the 2% surcharge on the
21selling price of firearm ammunition.
22 Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

HB3714- 68 -LRB098 14370 HLH 49019 b
1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to Section 3
4of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
5Act, Section 9 of the Service Use Tax Act, and Section 9 of the
6Service Occupation Tax Act, such Acts being hereinafter called
7the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
8may be, of moneys being hereinafter called the "Tax Act
9Amount", and (2) the amount transferred to the Build Illinois
10Fund from the State and Local Sales Tax Reform Fund shall be
11less than the Annual Specified Amount (as defined in Section 3
12of the Retailers' Occupation Tax Act), an amount equal to the
13difference shall be immediately paid into the Build Illinois
14Fund from other moneys received by the Department pursuant to
15the Tax Acts; and further provided, that if on the last
16business day of any month the sum of (1) the Tax Act Amount
17required to be deposited into the Build Illinois Account in the
18Build Illinois Fund during such month and (2) the amount
19transferred during such month to the Build Illinois Fund from
20the State and Local Sales Tax Reform Fund shall have been less
21than 1/12 of the Annual Specified Amount, an amount equal to
22the difference shall be immediately paid into the Build
23Illinois Fund from other moneys received by the Department
24pursuant to the Tax Acts; and, further provided, that in no
25event shall the payments required under the preceding proviso
26result in aggregate payments into the Build Illinois Fund

HB3714- 69 -LRB098 14370 HLH 49019 b
1pursuant to this clause (b) for any fiscal year in excess of
2the greater of (i) the Tax Act Amount or (ii) the Annual
3Specified Amount for such fiscal year; and, further provided,
4that the amounts payable into the Build Illinois Fund under
5this clause (b) shall be payable only until such time as the
6aggregate amount on deposit under each trust indenture securing
7Bonds issued and outstanding pursuant to the Build Illinois
8Bond Act is sufficient, taking into account any future
9investment income, to fully provide, in accordance with such
10indenture, for the defeasance of or the payment of the
11principal of, premium, if any, and interest on the Bonds
12secured by such indenture and on any Bonds expected to be
13issued thereafter and all fees and costs payable with respect
14thereto, all as certified by the Director of the Bureau of the
15Budget (now Governor's Office of Management and Budget). If on
16the last business day of any month in which Bonds are
17outstanding pursuant to the Build Illinois Bond Act, the
18aggregate of the moneys deposited in the Build Illinois Bond
19Account in the Build Illinois Fund in such month shall be less
20than the amount required to be transferred in such month from
21the Build Illinois Bond Account to the Build Illinois Bond
22Retirement and Interest Fund pursuant to Section 13 of the
23Build Illinois Bond Act, an amount equal to such deficiency
24shall be immediately paid from other moneys received by the
25Department pursuant to the Tax Acts to the Build Illinois Fund;
26provided, however, that any amounts paid to the Build Illinois

HB3714- 70 -LRB098 14370 HLH 49019 b
1Fund in any fiscal year pursuant to this sentence shall be
2deemed to constitute payments pursuant to clause (b) of the
3preceding sentence and shall reduce the amount otherwise
4payable for such fiscal year pursuant to clause (b) of the
5preceding sentence. The moneys received by the Department
6pursuant to this Act and required to be deposited into the
7Build Illinois Fund are subject to the pledge, claim and charge
8set forth in Section 12 of the Build Illinois Bond Act.
9 Subject to payment of amounts into the Build Illinois Fund
10as provided in the preceding paragraph or in any amendment
11thereto hereafter enacted, the following specified monthly
12installment of the amount requested in the certificate of the
13Chairman of the Metropolitan Pier and Exposition Authority
14provided under Section 8.25f of the State Finance Act, but not
15in excess of the sums designated as "Total Deposit", shall be
16deposited in the aggregate from collections under Section 9 of
17the Use Tax Act, Section 9 of the Service Use Tax Act, Section
189 of the Service Occupation Tax Act, and Section 3 of the
19Retailers' Occupation Tax Act into the McCormick Place
20Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit
221993 $0
231994 53,000,000
241995 58,000,000
251996 61,000,000

HB3714- 71 -LRB098 14370 HLH 49019 b
11997 64,000,000
21998 68,000,000
31999 71,000,000
42000 75,000,000
52001 80,000,000
62002 93,000,000
72003 99,000,000
82004103,000,000
92005108,000,000
102006113,000,000
112007119,000,000
122008126,000,000
132009132,000,000
142010139,000,000
152011146,000,000
162012153,000,000
172013161,000,000
182014170,000,000
192015179,000,000
202016189,000,000
212017199,000,000
222018210,000,000
232019221,000,000
242020233,000,000
252021246,000,000
262022260,000,000

HB3714- 72 -LRB098 14370 HLH 49019 b
12023275,000,000
22024 275,000,000
32025 275,000,000
42026 279,000,000
52027 292,000,000
62028 307,000,000
72029 322,000,000
82030 338,000,000
92031 350,000,000
102032 350,000,000
11and
12each fiscal year
13thereafter that bonds
14are outstanding under
15Section 13.2 of the
16Metropolitan Pier and
17Exposition Authority Act,
18but not after fiscal year 2060.
19 Beginning July 20, 1993 and in each month of each fiscal
20year thereafter, one-eighth of the amount requested in the
21certificate of the Chairman of the Metropolitan Pier and
22Exposition Authority for that fiscal year, less the amount
23deposited into the McCormick Place Expansion Project Fund by
24the State Treasurer in the respective month under subsection
25(g) of Section 13 of the Metropolitan Pier and Exposition
26Authority Act, plus cumulative deficiencies in the deposits

HB3714- 73 -LRB098 14370 HLH 49019 b
1required under this Section for previous months and years,
2shall be deposited into the McCormick Place Expansion Project
3Fund, until the full amount requested for the fiscal year, but
4not in excess of the amount specified above as "Total Deposit",
5has been deposited.
6 Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning July 1, 1993 and ending on September 30,
102013, the Department shall each month pay into the Illinois Tax
11Increment Fund 0.27% of 80% of the net revenue realized for the
12preceding month from the 6.25% general rate on the selling
13price of tangible personal property.
14 Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning with the receipt of the first report of
18taxes paid by an eligible business and continuing for a 25-year
19period, the Department shall each month pay into the Energy
20Infrastructure Fund 80% of the net revenue realized from the
216.25% general rate on the selling price of Illinois-mined coal
22that was sold to an eligible business. For purposes of this
23paragraph, the term "eligible business" means a new electric
24generating facility certified pursuant to Section 605-332 of
25the Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

HB3714- 74 -LRB098 14370 HLH 49019 b
1 Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% shall be paid into the General
3Revenue Fund of the State Treasury and 25% shall be reserved in
4a special account and used only for the transfer to the Common
5School Fund as part of the monthly transfer from the General
6Revenue Fund in accordance with Section 8a of the State Finance
7Act.
8 The Department may, upon separate written notice to a
9taxpayer, require the taxpayer to prepare and file with the
10Department on a form prescribed by the Department within not
11less than 60 days after receipt of the notice an annual
12information return for the tax year specified in the notice.
13Such annual return to the Department shall include a statement
14of gross receipts as shown by the taxpayer's last Federal
15income tax return. If the total receipts of the business as
16reported in the Federal income tax return do not agree with the
17gross receipts reported to the Department of Revenue for the
18same period, the taxpayer shall attach to his annual return a
19schedule showing a reconciliation of the 2 amounts and the
20reasons for the difference. The taxpayer's annual return to the
21Department shall also disclose the cost of goods sold by the
22taxpayer during the year covered by such return, opening and
23closing inventories of such goods for such year, cost of goods
24used from stock or taken from stock and given away by the
25taxpayer during such year, pay roll information of the
26taxpayer's business during such year and any additional

HB3714- 75 -LRB098 14370 HLH 49019 b
1reasonable information which the Department deems would be
2helpful in determining the accuracy of the monthly, quarterly
3or annual returns filed by such taxpayer as hereinbefore
4provided for in this Section.
5 If the annual information return required by this Section
6is not filed when and as required, the taxpayer shall be liable
7as follows:
8 (i) Until January 1, 1994, the taxpayer shall be liable
9 for a penalty equal to 1/6 of 1% of the tax due from such
10 taxpayer under this Act during the period to be covered by
11 the annual return for each month or fraction of a month
12 until such return is filed as required, the penalty to be
13 assessed and collected in the same manner as any other
14 penalty provided for in this Act.
15 (ii) On and after January 1, 1994, the taxpayer shall
16 be liable for a penalty as described in Section 3-4 of the
17 Uniform Penalty and Interest Act.
18 The chief executive officer, proprietor, owner or highest
19ranking manager shall sign the annual return to certify the
20accuracy of the information contained therein. Any person who
21willfully signs the annual return containing false or
22inaccurate information shall be guilty of perjury and punished
23accordingly. The annual return form prescribed by the
24Department shall include a warning that the person signing the
25return may be liable for perjury.
26 The foregoing portion of this Section concerning the filing

HB3714- 76 -LRB098 14370 HLH 49019 b
1of an annual information return shall not apply to a serviceman
2who is not required to file an income tax return with the
3United States Government.
4 As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11 Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15 For greater simplicity of administration, it shall be
16permissible for manufacturers, importers and wholesalers whose
17products are sold by numerous servicemen in Illinois, and who
18wish to do so, to assume the responsibility for accounting and
19paying to the Department all tax accruing under this Act with
20respect to such sales, if the servicemen who are affected do
21not make written objection to the Department to this
22arrangement.
23(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2498-298, eff. 8-9-13; 98-496, eff. 1-1-14; revised 9-9-13.)
25 Section 25. The Retailers' Occupation Tax Act is amended by

HB3714- 77 -LRB098 14370 HLH 49019 b
1changing Sections 2-10 and 3 as follows:
2 (35 ILCS 120/2-10)
3 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made in
6the course of business.
7 Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14 Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device that
18is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall be
23printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a

HB3714- 78 -LRB098 14370 HLH 49019 b
1required sign through December 31, 2000 is guilty of a petty
2offense for which the fine shall be $500 per day per each
3retail premises where a violation occurs.
4 With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the proceeds of
6sales made on or after January 1, 1990, and before July 1,
72003, (ii) 80% of the proceeds of sales made on or after July
81, 2003 and on or before December 31, 2018, and (iii) 100% of
9the proceeds of sales made thereafter. If, at any time,
10however, the tax under this Act on sales of gasohol, as defined
11in the Use Tax Act, is imposed at the rate of 1.25%, then the
12tax imposed by this Act applies to 100% of the proceeds of
13sales of gasohol made during that time.
14 With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the proceeds of sales made on or after July 1, 2003 and on or
17before December 31, 2018 but applies to 100% of the proceeds of
18sales made thereafter.
19 With respect to biodiesel blends, as defined in the Use Tax
20Act, with no less than 1% and no more than 10% biodiesel, the
21tax imposed by this Act applies to (i) 80% of the proceeds of
22sales made on or after July 1, 2003 and on or before December
2331, 2018 and (ii) 100% of the proceeds of sales made
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

HB3714- 79 -LRB098 14370 HLH 49019 b
1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and no more than 10% biodiesel made during that time.
4 With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2018 but
9applies to 100% of the proceeds of sales made thereafter.
10 With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption) and prescription and
14nonprescription medicines, drugs, medical appliances,
15modifications to a motor vehicle for the purpose of rendering
16it usable by a disabled person, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, the tax is imposed at the rate of 1%. For the purposes of
19this Section, until September 1, 2009: the term "soft drinks"
20means any complete, finished, ready-to-use, non-alcoholic
21drink, whether carbonated or not, including but not limited to
22soda water, cola, fruit juice, vegetable juice, carbonated
23water, and all other preparations commonly known as soft drinks
24of whatever kind or description that are contained in any
25closed or sealed bottle, can, carton, or container, regardless
26of size; but "soft drinks" does not include coffee, tea,

HB3714- 80 -LRB098 14370 HLH 49019 b
1non-carbonated water, infant formula, milk or milk products as
2defined in the Grade A Pasteurized Milk and Milk Products Act,
3or drinks containing 50% or more natural fruit or vegetable
4juice.
5 Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "soft drinks" means non-alcoholic
7beverages that contain natural or artificial sweeteners. "Soft
8drinks" do not include beverages that contain milk or milk
9products, soy, rice or similar milk substitutes, or greater
10than 50% of vegetable or fruit juice by volume.
11 Until August 1, 2009, and notwithstanding any other
12provisions of this Act, "food for human consumption that is to
13be consumed off the premises where it is sold" includes all
14food sold through a vending machine, except soft drinks and
15food products that are dispensed hot from a vending machine,
16regardless of the location of the vending machine. Beginning
17August 1, 2009, and notwithstanding any other provisions of
18this Act, "food for human consumption that is to be consumed
19off the premises where it is sold" includes all food sold
20through a vending machine, except soft drinks, candy, and food
21products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine.
23 Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "food for human consumption that
25is to be consumed off the premises where it is sold" does not
26include candy. For purposes of this Section, "candy" means a

HB3714- 81 -LRB098 14370 HLH 49019 b
1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or other
3ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
18label includes:
19 (A) A "Drug Facts" panel; or
20 (B) A statement of the "active ingredient(s)" with a
21 list of those ingredients contained in the compound,
22 substance or preparation.
23 Beginning on the effective date of this amendatory Act of
24the 98th General Assembly, "prescription and nonprescription
25medicines and drugs" includes medical cannabis purchased from a
26registered dispensing organization under the Compassionate Use

HB3714- 82 -LRB098 14370 HLH 49019 b
1of Medical Cannabis Pilot Program Act.
2 Beginning January 1, 2014, in addition to all other rates
3of tax imposed under this Act, a surcharge of 2% is imposed on
4the selling price of firearm ammunition. "Firearm" and "firearm
5ammunition" have the meanings ascribed to them in Section 1.1
6of the Firearm Owners Identification Card Act.
7(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
8 (35 ILCS 120/3) (from Ch. 120, par. 442)
9 Sec. 3. Except as provided in this Section, on or before
10the twentieth day of each calendar month, every person engaged
11in the business of selling tangible personal property at retail
12in this State during the preceding calendar month shall file a
13return with the Department, stating:
14 1. The name of the seller;
15 2. His residence address and the address of his
16 principal place of business and the address of the
17 principal place of business (if that is a different
18 address) from which he engages in the business of selling
19 tangible personal property at retail in this State;
20 3. Total amount of receipts received by him during the
21 preceding calendar month or quarter, as the case may be,
22 from sales of tangible personal property, and from services
23 furnished, by him during such preceding calendar month or
24 quarter;
25 4. Total amount received by him during the preceding

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1 calendar month or quarter on charge and time sales of
2 tangible personal property, and from services furnished,
3 by him prior to the month or quarter for which the return
4 is filed;
5 5. Deductions allowed by law;
6 6. Gross receipts which were received by him during the
7 preceding calendar month or quarter and upon the basis of
8 which the tax is imposed;
9 7. The amount of credit provided in Section 2d of this
10 Act;
11 8. The amount of tax due;
12 9. The signature of the taxpayer; and
13 10. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16the proper notice and demand for signature by the Department,
17the return shall be considered valid and any amount shown to be
18due on the return shall be deemed assessed.
19 Each return shall be accompanied by the statement of
20prepaid tax issued pursuant to Section 2e for which credit is
21claimed.
22 Prior to October 1, 2003, and on and after September 1,
232004 a retailer may accept a Manufacturer's Purchase Credit
24certification from a purchaser in satisfaction of Use Tax as
25provided in Section 3-85 of the Use Tax Act if the purchaser
26provides the appropriate documentation as required by Section

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13-85 of the Use Tax Act. A Manufacturer's Purchase Credit
2certification, accepted by a retailer prior to October 1, 2003
3and on and after September 1, 2004 as provided in Section 3-85
4of the Use Tax Act, may be used by that retailer to satisfy
5Retailers' Occupation Tax liability in the amount claimed in
6the certification, not to exceed 6.25% of the receipts subject
7to tax from a qualifying purchase. A Manufacturer's Purchase
8Credit reported on any original or amended return filed under
9this Act after October 20, 2003 for reporting periods prior to
10September 1, 2004 shall be disallowed. Manufacturer's
11Purchaser Credit reported on annual returns due on or after
12January 1, 2005 will be disallowed for periods prior to
13September 1, 2004. No Manufacturer's Purchase Credit may be
14used after September 30, 2003 through August 31, 2004 to
15satisfy any tax liability imposed under this Act, including any
16audit liability.
17 The Department may require returns to be filed on a
18quarterly basis. If so required, a return for each calendar
19quarter shall be filed on or before the twentieth day of the
20calendar month following the end of such calendar quarter. The
21taxpayer shall also file a return with the Department for each
22of the first two months of each calendar quarter, on or before
23the twentieth day of the following calendar month, stating:
24 1. The name of the seller;
25 2. The address of the principal place of business from
26 which he engages in the business of selling tangible

HB3714- 85 -LRB098 14370 HLH 49019 b
1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by him
3 during the preceding calendar month from sales of tangible
4 personal property by him during such preceding calendar
5 month, including receipts from charge and time sales, but
6 less all deductions allowed by law;
7 4. The amount of credit provided in Section 2d of this
8 Act;
9 5. The amount of tax due; and
10 6. Such other reasonable information as the Department
11 may require.
12 Beginning on October 1, 2003, any person who is not a
13licensed distributor, importing distributor, or manufacturer,
14as defined in the Liquor Control Act of 1934, but is engaged in
15the business of selling, at retail, alcoholic liquor shall file
16a statement with the Department of Revenue, in a format and at
17a time prescribed by the Department, showing the total amount
18paid for alcoholic liquor purchased during the preceding month
19and such other information as is reasonably required by the
20Department. The Department may adopt rules to require that this
21statement be filed in an electronic or telephonic format. Such
22rules may provide for exceptions from the filing requirements
23of this paragraph. For the purposes of this paragraph, the term
24"alcoholic liquor" shall have the meaning prescribed in the
25Liquor Control Act of 1934.
26 Beginning on October 1, 2003, every distributor, importing

HB3714- 86 -LRB098 14370 HLH 49019 b
1distributor, and manufacturer of alcoholic liquor as defined in
2the Liquor Control Act of 1934, shall file a statement with the
3Department of Revenue, no later than the 10th day of the month
4for the preceding month during which transactions occurred, by
5electronic means, showing the total amount of gross receipts
6from the sale of alcoholic liquor sold or distributed during
7the preceding month to purchasers; identifying the purchaser to
8whom it was sold or distributed; the purchaser's tax
9registration number; and such other information reasonably
10required by the Department. A distributor, importing
11distributor, or manufacturer of alcoholic liquor must
12personally deliver, mail, or provide by electronic means to
13each retailer listed on the monthly statement a report
14containing a cumulative total of that distributor's, importing
15distributor's, or manufacturer's total sales of alcoholic
16liquor to that retailer no later than the 10th day of the month
17for the preceding month during which the transaction occurred.
18The distributor, importing distributor, or manufacturer shall
19notify the retailer as to the method by which the distributor,
20importing distributor, or manufacturer will provide the sales
21information. If the retailer is unable to receive the sales
22information by electronic means, the distributor, importing
23distributor, or manufacturer shall furnish the sales
24information by personal delivery or by mail. For purposes of
25this paragraph, the term "electronic means" includes, but is
26not limited to, the use of a secure Internet website, e-mail,

HB3714- 87 -LRB098 14370 HLH 49019 b
1or facsimile.
2 If a total amount of less than $1 is payable, refundable or
3creditable, such amount shall be disregarded if it is less than
450 cents and shall be increased to $1 if it is 50 cents or more.
5 Beginning October 1, 1993, a taxpayer who has an average
6monthly tax liability of $150,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1994, a taxpayer who has
9an average monthly tax liability of $100,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1995, a taxpayer who has
12an average monthly tax liability of $50,000 or more shall make
13all payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 2000, a taxpayer who has
15an annual tax liability of $200,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. The term "annual tax liability" shall be the
18sum of the taxpayer's liabilities under this Act, and under all
19other State and local occupation and use tax laws administered
20by the Department, for the immediately preceding calendar year.
21The term "average monthly tax liability" shall be the sum of
22the taxpayer's liabilities under this Act, and under all other
23State and local occupation and use tax laws administered by the
24Department, for the immediately preceding calendar year
25divided by 12. Beginning on October 1, 2002, a taxpayer who has
26a tax liability in the amount set forth in subsection (b) of

HB3714- 88 -LRB098 14370 HLH 49019 b
1Section 2505-210 of the Department of Revenue Law shall make
2all payments required by rules of the Department by electronic
3funds transfer.
4 Before August 1 of each year beginning in 1993, the
5Department shall notify all taxpayers required to make payments
6by electronic funds transfer. All taxpayers required to make
7payments by electronic funds transfer shall make those payments
8for a minimum of one year beginning on October 1.
9 Any taxpayer not required to make payments by electronic
10funds transfer may make payments by electronic funds transfer
11with the permission of the Department.
12 All taxpayers required to make payment by electronic funds
13transfer and any taxpayers authorized to voluntarily make
14payments by electronic funds transfer shall make those payments
15in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17effectuate a program of electronic funds transfer and the
18requirements of this Section.
19 Any amount which is required to be shown or reported on any
20return or other document under this Act shall, if such amount
21is not a whole-dollar amount, be increased to the nearest
22whole-dollar amount in any case where the fractional part of a
23dollar is 50 cents or more, and decreased to the nearest
24whole-dollar amount where the fractional part of a dollar is
25less than 50 cents.
26 If the retailer is otherwise required to file a monthly

HB3714- 89 -LRB098 14370 HLH 49019 b
1return and if the retailer's average monthly tax liability to
2the Department does not exceed $200, the Department may
3authorize his returns to be filed on a quarter annual basis,
4with the return for January, February and March of a given year
5being due by April 20 of such year; with the return for April,
6May and June of a given year being due by July 20 of such year;
7with the return for July, August and September of a given year
8being due by October 20 of such year, and with the return for
9October, November and December of a given year being due by
10January 20 of the following year.
11 If the retailer is otherwise required to file a monthly or
12quarterly return and if the retailer's average monthly tax
13liability with the Department does not exceed $50, the
14Department may authorize his returns to be filed on an annual
15basis, with the return for a given year being due by January 20
16of the following year.
17 Such quarter annual and annual returns, as to form and
18substance, shall be subject to the same requirements as monthly
19returns.
20 Notwithstanding any other provision in this Act concerning
21the time within which a retailer may file his return, in the
22case of any retailer who ceases to engage in a kind of business
23which makes him responsible for filing returns under this Act,
24such retailer shall file a final return under this Act with the
25Department not more than one month after discontinuing such
26business.

HB3714- 90 -LRB098 14370 HLH 49019 b
1 Where the same person has more than one business registered
2with the Department under separate registrations under this
3Act, such person may not file each return that is due as a
4single return covering all such registered businesses, but
5shall file separate returns for each such registered business.
6 In addition, with respect to motor vehicles, watercraft,
7aircraft, and trailers that are required to be registered with
8an agency of this State, every retailer selling this kind of
9tangible personal property shall file, with the Department,
10upon a form to be prescribed and supplied by the Department, a
11separate return for each such item of tangible personal
12property which the retailer sells, except that if, in the same
13transaction, (i) a retailer of aircraft, watercraft, motor
14vehicles or trailers transfers more than one aircraft,
15watercraft, motor vehicle or trailer to another aircraft,
16watercraft, motor vehicle retailer or trailer retailer for the
17purpose of resale or (ii) a retailer of aircraft, watercraft,
18motor vehicles, or trailers transfers more than one aircraft,
19watercraft, motor vehicle, or trailer to a purchaser for use as
20a qualifying rolling stock as provided in Section 2-5 of this
21Act, then that seller may report the transfer of all aircraft,
22watercraft, motor vehicles or trailers involved in that
23transaction to the Department on the same uniform
24invoice-transaction reporting return form. For purposes of
25this Section, "watercraft" means a Class 2, Class 3, or Class 4
26watercraft as defined in Section 3-2 of the Boat Registration

HB3714- 91 -LRB098 14370 HLH 49019 b
1and Safety Act, a personal watercraft, or any boat equipped
2with an inboard motor.
3 Any retailer who sells only motor vehicles, watercraft,
4aircraft, or trailers that are required to be registered with
5an agency of this State, so that all retailers' occupation tax
6liability is required to be reported, and is reported, on such
7transaction reporting returns and who is not otherwise required
8to file monthly or quarterly returns, need not file monthly or
9quarterly returns. However, those retailers shall be required
10to file returns on an annual basis.
11 The transaction reporting return, in the case of motor
12vehicles or trailers that are required to be registered with an
13agency of this State, shall be the same document as the Uniform
14Invoice referred to in Section 5-402 of The Illinois Vehicle
15Code and must show the name and address of the seller; the name
16and address of the purchaser; the amount of the selling price
17including the amount allowed by the retailer for traded-in
18property, if any; the amount allowed by the retailer for the
19traded-in tangible personal property, if any, to the extent to
20which Section 1 of this Act allows an exemption for the value
21of traded-in property; the balance payable after deducting such
22trade-in allowance from the total selling price; the amount of
23tax due from the retailer with respect to such transaction; the
24amount of tax collected from the purchaser by the retailer on
25such transaction (or satisfactory evidence that such tax is not
26due in that particular instance, if that is claimed to be the

HB3714- 92 -LRB098 14370 HLH 49019 b
1fact); the place and date of the sale; a sufficient
2identification of the property sold; such other information as
3is required in Section 5-402 of The Illinois Vehicle Code, and
4such other information as the Department may reasonably
5require.
6 The transaction reporting return in the case of watercraft
7or aircraft must show the name and address of the seller; the
8name and address of the purchaser; the amount of the selling
9price including the amount allowed by the retailer for
10traded-in property, if any; the amount allowed by the retailer
11for the traded-in tangible personal property, if any, to the
12extent to which Section 1 of this Act allows an exemption for
13the value of traded-in property; the balance payable after
14deducting such trade-in allowance from the total selling price;
15the amount of tax due from the retailer with respect to such
16transaction; the amount of tax collected from the purchaser by
17the retailer on such transaction (or satisfactory evidence that
18such tax is not due in that particular instance, if that is
19claimed to be the fact); the place and date of the sale, a
20sufficient identification of the property sold, and such other
21information as the Department may reasonably require.
22 Such transaction reporting return shall be filed not later
23than 20 days after the day of delivery of the item that is
24being sold, but may be filed by the retailer at any time sooner
25than that if he chooses to do so. The transaction reporting
26return and tax remittance or proof of exemption from the

HB3714- 93 -LRB098 14370 HLH 49019 b
1Illinois use tax may be transmitted to the Department by way of
2the State agency with which, or State officer with whom the
3tangible personal property must be titled or registered (if
4titling or registration is required) if the Department and such
5agency or State officer determine that this procedure will
6expedite the processing of applications for title or
7registration.
8 With each such transaction reporting return, the retailer
9shall remit the proper amount of tax due (or shall submit
10satisfactory evidence that the sale is not taxable if that is
11the case), to the Department or its agents, whereupon the
12Department shall issue, in the purchaser's name, a use tax
13receipt (or a certificate of exemption if the Department is
14satisfied that the particular sale is tax exempt) which such
15purchaser may submit to the agency with which, or State officer
16with whom, he must title or register the tangible personal
17property that is involved (if titling or registration is
18required) in support of such purchaser's application for an
19Illinois certificate or other evidence of title or registration
20to such tangible personal property.
21 No retailer's failure or refusal to remit tax under this
22Act precludes a user, who has paid the proper tax to the
23retailer, from obtaining his certificate of title or other
24evidence of title or registration (if titling or registration
25is required) upon satisfying the Department that such user has
26paid the proper tax (if tax is due) to the retailer. The

HB3714- 94 -LRB098 14370 HLH 49019 b
1Department shall adopt appropriate rules to carry out the
2mandate of this paragraph.
3 If the user who would otherwise pay tax to the retailer
4wants the transaction reporting return filed and the payment of
5the tax or proof of exemption made to the Department before the
6retailer is willing to take these actions and such user has not
7paid the tax to the retailer, such user may certify to the fact
8of such delay by the retailer and may (upon the Department
9being satisfied of the truth of such certification) transmit
10the information required by the transaction reporting return
11and the remittance for tax or proof of exemption directly to
12the Department and obtain his tax receipt or exemption
13determination, in which event the transaction reporting return
14and tax remittance (if a tax payment was required) shall be
15credited by the Department to the proper retailer's account
16with the Department, but without the 2.1% or 1.75% discount
17provided for in this Section being allowed. When the user pays
18the tax directly to the Department, he shall pay the tax in the
19same amount and in the same form in which it would be remitted
20if the tax had been remitted to the Department by the retailer.
21 Refunds made by the seller during the preceding return
22period to purchasers, on account of tangible personal property
23returned to the seller, shall be allowed as a deduction under
24subdivision 5 of his monthly or quarterly return, as the case
25may be, in case the seller had theretofore included the
26receipts from the sale of such tangible personal property in a

HB3714- 95 -LRB098 14370 HLH 49019 b
1return filed by him and had paid the tax imposed by this Act
2with respect to such receipts.
3 Where the seller is a corporation, the return filed on
4behalf of such corporation shall be signed by the president,
5vice-president, secretary or treasurer or by the properly
6accredited agent of such corporation.
7 Where the seller is a limited liability company, the return
8filed on behalf of the limited liability company shall be
9signed by a manager, member, or properly accredited agent of
10the limited liability company.
11 Except as provided in this Section, the retailer filing the
12return under this Section shall, at the time of filing such
13return, pay to the Department the amount of tax imposed by this
14Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
15on and after January 1, 1990, or $5 per calendar year,
16whichever is greater, which is allowed to reimburse the
17retailer for the expenses incurred in keeping records,
18preparing and filing returns, remitting the tax and supplying
19data to the Department on request. Any prepayment made pursuant
20to Section 2d of this Act shall be included in the amount on
21which such 2.1% or 1.75% discount is computed. In the case of
22retailers who report and pay the tax on a transaction by
23transaction basis, as provided in this Section, such discount
24shall be taken with each such tax remittance instead of when
25such retailer files his periodic return. The Department may
26disallow the discount for retailers whose certificate of

HB3714- 96 -LRB098 14370 HLH 49019 b
1registration is revoked at the time the return is filed, but
2only if the Department's decision to revoke the certificate of
3registration has become final.
4 Before October 1, 2000, if the taxpayer's average monthly
5tax liability to the Department under this Act, the Use Tax
6Act, the Service Occupation Tax Act, and the Service Use Tax
7Act, excluding any liability for prepaid sales tax to be
8remitted in accordance with Section 2d of this Act, was $10,000
9or more during the preceding 4 complete calendar quarters, he
10shall file a return with the Department each month by the 20th
11day of the month next following the month during which such tax
12liability is incurred and shall make payments to the Department
13on or before the 7th, 15th, 22nd and last day of the month
14during which such liability is incurred. On and after October
151, 2000, if the taxpayer's average monthly tax liability to the
16Department under this Act, the Use Tax Act, the Service
17Occupation Tax Act, and the Service Use Tax Act, excluding any
18liability for prepaid sales tax to be remitted in accordance
19with Section 2d of this Act, was $20,000 or more during the
20preceding 4 complete calendar quarters, he shall file a return
21with the Department each month by the 20th day of the month
22next following the month during which such tax liability is
23incurred and shall make payment to the Department on or before
24the 7th, 15th, 22nd and last day of the month during which such
25liability is incurred. If the month during which such tax
26liability is incurred began prior to January 1, 1985, each

HB3714- 97 -LRB098 14370 HLH 49019 b
1payment shall be in an amount equal to 1/4 of the taxpayer's
2actual liability for the month or an amount set by the
3Department not to exceed 1/4 of the average monthly liability
4of the taxpayer to the Department for the preceding 4 complete
5calendar quarters (excluding the month of highest liability and
6the month of lowest liability in such 4 quarter period). If the
7month during which such tax liability is incurred begins on or
8after January 1, 1985 and prior to January 1, 1987, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 27.5% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1987 and prior to January 1, 1988, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 26.25% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1988, and prior to January 1, 1989, or
19begins on or after January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year. If the month during which
23such tax liability is incurred begins on or after January 1,
241989, and prior to January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

HB3714- 98 -LRB098 14370 HLH 49019 b
1calendar month of the preceding year or 100% of the taxpayer's
2actual liability for the quarter monthly reporting period. The
3amount of such quarter monthly payments shall be credited
4against the final tax liability of the taxpayer's return for
5that month. Before October 1, 2000, once applicable, the
6requirement of the making of quarter monthly payments to the
7Department by taxpayers having an average monthly tax liability
8of $10,000 or more as determined in the manner provided above
9shall continue until such taxpayer's average monthly liability
10to the Department during the preceding 4 complete calendar
11quarters (excluding the month of highest liability and the
12month of lowest liability) is less than $9,000, or until such
13taxpayer's average monthly liability to the Department as
14computed for each calendar quarter of the 4 preceding complete
15calendar quarter period is less than $10,000. However, if a
16taxpayer can show the Department that a substantial change in
17the taxpayer's business has occurred which causes the taxpayer
18to anticipate that his average monthly tax liability for the
19reasonably foreseeable future will fall below the $10,000
20threshold stated above, then such taxpayer may petition the
21Department for a change in such taxpayer's reporting status. On
22and after October 1, 2000, once applicable, the requirement of
23the making of quarter monthly payments to the Department by
24taxpayers having an average monthly tax liability of $20,000 or
25more as determined in the manner provided above shall continue
26until such taxpayer's average monthly liability to the

HB3714- 99 -LRB098 14370 HLH 49019 b
1Department during the preceding 4 complete calendar quarters
2(excluding the month of highest liability and the month of
3lowest liability) is less than $19,000 or until such taxpayer's
4average monthly liability to the Department as computed for
5each calendar quarter of the 4 preceding complete calendar
6quarter period is less than $20,000. However, if a taxpayer can
7show the Department that a substantial change in the taxpayer's
8business has occurred which causes the taxpayer to anticipate
9that his average monthly tax liability for the reasonably
10foreseeable future will fall below the $20,000 threshold stated
11above, then such taxpayer may petition the Department for a
12change in such taxpayer's reporting status. The Department
13shall change such taxpayer's reporting status unless it finds
14that such change is seasonal in nature and not likely to be
15long term. If any such quarter monthly payment is not paid at
16the time or in the amount required by this Section, then the
17taxpayer shall be liable for penalties and interest on the
18difference between the minimum amount due as a payment and the
19amount of such quarter monthly payment actually and timely
20paid, except insofar as the taxpayer has previously made
21payments for that month to the Department in excess of the
22minimum payments previously due as provided in this Section.
23The Department shall make reasonable rules and regulations to
24govern the quarter monthly payment amount and quarter monthly
25payment dates for taxpayers who file on other than a calendar
26monthly basis.

HB3714- 100 -LRB098 14370 HLH 49019 b
1 The provisions of this paragraph apply before October 1,
22001. Without regard to whether a taxpayer is required to make
3quarter monthly payments as specified above, any taxpayer who
4is required by Section 2d of this Act to collect and remit
5prepaid taxes and has collected prepaid taxes which average in
6excess of $25,000 per month during the preceding 2 complete
7calendar quarters, shall file a return with the Department as
8required by Section 2f and shall make payments to the
9Department on or before the 7th, 15th, 22nd and last day of the
10month during which such liability is incurred. If the month
11during which such tax liability is incurred began prior to the
12effective date of this amendatory Act of 1985, each payment
13shall be in an amount not less than 22.5% of the taxpayer's
14actual liability under Section 2d. If the month during which
15such tax liability is incurred begins on or after January 1,
161986, each payment shall be in an amount equal to 22.5% of the
17taxpayer's actual liability for the month or 27.5% of the
18taxpayer's liability for the same calendar month of the
19preceding calendar year. If the month during which such tax
20liability is incurred begins on or after January 1, 1987, each
21payment shall be in an amount equal to 22.5% of the taxpayer's
22actual liability for the month or 26.25% of the taxpayer's
23liability for the same calendar month of the preceding year.
24The amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month filed under this Section or Section 2f, as the case

HB3714- 101 -LRB098 14370 HLH 49019 b
1may be. Once applicable, the requirement of the making of
2quarter monthly payments to the Department pursuant to this
3paragraph shall continue until such taxpayer's average monthly
4prepaid tax collections during the preceding 2 complete
5calendar quarters is $25,000 or less. If any such quarter
6monthly payment is not paid at the time or in the amount
7required, the taxpayer shall be liable for penalties and
8interest on such difference, except insofar as the taxpayer has
9previously made payments for that month in excess of the
10minimum payments previously due.
11 The provisions of this paragraph apply on and after October
121, 2001. Without regard to whether a taxpayer is required to
13make quarter monthly payments as specified above, any taxpayer
14who is required by Section 2d of this Act to collect and remit
15prepaid taxes and has collected prepaid taxes that average in
16excess of $20,000 per month during the preceding 4 complete
17calendar quarters shall file a return with the Department as
18required by Section 2f and shall make payments to the
19Department on or before the 7th, 15th, 22nd and last day of the
20month during which the liability is incurred. Each payment
21shall be in an amount equal to 22.5% of the taxpayer's actual
22liability for the month or 25% of the taxpayer's liability for
23the same calendar month of the preceding year. The amount of
24the quarter monthly payments shall be credited against the
25final tax liability of the taxpayer's return for that month
26filed under this Section or Section 2f, as the case may be.

HB3714- 102 -LRB098 14370 HLH 49019 b
1Once applicable, the requirement of the making of quarter
2monthly payments to the Department pursuant to this paragraph
3shall continue until the taxpayer's average monthly prepaid tax
4collections during the preceding 4 complete calendar quarters
5(excluding the month of highest liability and the month of
6lowest liability) is less than $19,000 or until such taxpayer's
7average monthly liability to the Department as computed for
8each calendar quarter of the 4 preceding complete calendar
9quarters is less than $20,000. If any such quarter monthly
10payment is not paid at the time or in the amount required, the
11taxpayer shall be liable for penalties and interest on such
12difference, except insofar as the taxpayer has previously made
13payments for that month in excess of the minimum payments
14previously due.
15 If any payment provided for in this Section exceeds the
16taxpayer's liabilities under this Act, the Use Tax Act, the
17Service Occupation Tax Act and the Service Use Tax Act, as
18shown on an original monthly return, the Department shall, if
19requested by the taxpayer, issue to the taxpayer a credit
20memorandum no later than 30 days after the date of payment. The
21credit evidenced by such credit memorandum may be assigned by
22the taxpayer to a similar taxpayer under this Act, the Use Tax
23Act, the Service Occupation Tax Act or the Service Use Tax Act,
24in accordance with reasonable rules and regulations to be
25prescribed by the Department. If no such request is made, the
26taxpayer may credit such excess payment against tax liability

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1subsequently to be remitted to the Department under this Act,
2the Use Tax Act, the Service Occupation Tax Act or the Service
3Use Tax Act, in accordance with reasonable rules and
4regulations prescribed by the Department. If the Department
5subsequently determined that all or any part of the credit
6taken was not actually due to the taxpayer, the taxpayer's 2.1%
7and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
8of the difference between the credit taken and that actually
9due, and that taxpayer shall be liable for penalties and
10interest on such difference.
11 If a retailer of motor fuel is entitled to a credit under
12Section 2d of this Act which exceeds the taxpayer's liability
13to the Department under this Act for the month which the
14taxpayer is filing a return, the Department shall issue the
15taxpayer a credit memorandum for the excess.
16 Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund, a special fund in the
18State treasury which is hereby created, the net revenue
19realized for the preceding month from the 1% tax on sales of
20food for human consumption which is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks and food which has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances and insulin, urine testing
25materials, syringes and needles used by diabetics.
26 Beginning January 1, 1990, each month the Department shall

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1pay into the County and Mass Transit District Fund, a special
2fund in the State treasury which is hereby created, 4% of the
3net revenue realized for the preceding month from the 6.25%
4general rate.
5 Beginning August 1, 2000, each month the Department shall
6pay into the County and Mass Transit District Fund 20% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol. Beginning
9September 1, 2010, each month the Department shall pay into the
10County and Mass Transit District Fund 20% of the net revenue
11realized for the preceding month from the 1.25% rate on the
12selling price of sales tax holiday items.
13 Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund 16% of the net revenue
15realized for the preceding month from the 6.25% general rate on
16the selling price of tangible personal property.
17 Beginning August 1, 2000, each month the Department shall
18pay into the Local Government Tax Fund 80% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of motor fuel and gasohol. Beginning September 1,
212010, each month the Department shall pay into the Local
22Government Tax Fund 80% of the net revenue realized for the
23preceding month from the 1.25% rate on the selling price of
24sales tax holiday items.
25 Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

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1an amount estimated by the Department to represent 80% of the
2net revenue realized for the preceding month from the sale of
3candy, grooming and hygiene products, and soft drinks that had
4been taxed at a rate of 1% prior to September 1, 2009 but that
5are is now taxed at 6.25%.
6 Beginning July 1, 2011, each month the Department shall pay
7into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of sorbents used in Illinois in the process
10of sorbent injection as used to comply with the Environmental
11Protection Act or the federal Clean Air Act, but the total
12payment into the Clean Air Act (CAA) Permit Fund under this Act
13and the Use Tax Act shall not exceed $2,000,000 in any fiscal
14year.
15 Beginning July 1, 2013, each month the Department shall pay
16into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Service Occupation Tax Act an amount equal to the
19average monthly deficit in the Underground Storage Tank Fund
20during the prior year, as certified annually by the Illinois
21Environmental Protection Agency, but the total payment into the
22Underground Storage Tank Fund under this Act, the Use Tax Act,
23the Service Use Tax Act, and the Service Occupation Tax Act
24shall not exceed $18,000,000 in any State fiscal year. As used
25in this paragraph, the "average monthly deficit" shall be equal
26to the difference between the average monthly claims for

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1payment by the fund and the average monthly revenues deposited
2into the fund, excluding payments made pursuant to this
3paragraph.
4 Beginning January 1, 2014, the Department shall pay into
5the High Crime Trauma Center Grant Fund 100% of the net revenue
6realized for the preceding month from the 2% surcharge on the
7selling price of firearm ammunition.
8 Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to this Act,
16Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
17Act, and Section 9 of the Service Occupation Tax Act, such Acts
18being hereinafter called the "Tax Acts" and such aggregate of
192.2% or 3.8%, as the case may be, of moneys being hereinafter
20called the "Tax Act Amount", and (2) the amount transferred to
21the Build Illinois Fund from the State and Local Sales Tax
22Reform Fund shall be less than the Annual Specified Amount (as
23hereinafter defined), an amount equal to the difference shall
24be immediately paid into the Build Illinois Fund from other
25moneys received by the Department pursuant to the Tax Acts; the
26"Annual Specified Amount" means the amounts specified below for

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1fiscal years 1986 through 1993:
2Fiscal YearAnnual Specified Amount
31986$54,800,000
41987$76,650,000
51988$80,480,000
61989$88,510,000
71990$115,330,000
81991$145,470,000
91992$182,730,000
101993$206,520,000;
11and means the Certified Annual Debt Service Requirement (as
12defined in Section 13 of the Build Illinois Bond Act) or the
13Tax Act Amount, whichever is greater, for fiscal year 1994 and
14each fiscal year thereafter; and further provided, that if on
15the last business day of any month the sum of (1) the Tax Act
16Amount required to be deposited into the Build Illinois Bond
17Account in the Build Illinois Fund during such month and (2)
18the amount transferred to the Build Illinois Fund from the
19State and Local Sales Tax Reform Fund shall have been less than
201/12 of the Annual Specified Amount, an amount equal to the
21difference shall be immediately paid into the Build Illinois
22Fund from other moneys received by the Department pursuant to
23the Tax Acts; and, further provided, that in no event shall the
24payments required under the preceding proviso result in
25aggregate payments into the Build Illinois Fund pursuant to
26this clause (b) for any fiscal year in excess of the greater of

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1(i) the Tax Act Amount or (ii) the Annual Specified Amount for
2such fiscal year. The amounts payable into the Build Illinois
3Fund under clause (b) of the first sentence in this paragraph
4shall be payable only until such time as the aggregate amount
5on deposit under each trust indenture securing Bonds issued and
6outstanding pursuant to the Build Illinois Bond Act is
7sufficient, taking into account any future investment income,
8to fully provide, in accordance with such indenture, for the
9defeasance of or the payment of the principal of, premium, if
10any, and interest on the Bonds secured by such indenture and on
11any Bonds expected to be issued thereafter and all fees and
12costs payable with respect thereto, all as certified by the
13Director of the Bureau of the Budget (now Governor's Office of
14Management and Budget). If on the last business day of any
15month in which Bonds are outstanding pursuant to the Build
16Illinois Bond Act, the aggregate of moneys deposited in the
17Build Illinois Bond Account in the Build Illinois Fund in such
18month shall be less than the amount required to be transferred
19in such month from the Build Illinois Bond Account to the Build
20Illinois Bond Retirement and Interest Fund pursuant to Section
2113 of the Build Illinois Bond Act, an amount equal to such
22deficiency shall be immediately paid from other moneys received
23by the Department pursuant to the Tax Acts to the Build
24Illinois Fund; provided, however, that any amounts paid to the
25Build Illinois Fund in any fiscal year pursuant to this
26sentence shall be deemed to constitute payments pursuant to

HB3714- 109 -LRB098 14370 HLH 49019 b
1clause (b) of the first sentence of this paragraph and shall
2reduce the amount otherwise payable for such fiscal year
3pursuant to that clause (b). The moneys received by the
4Department pursuant to this Act and required to be deposited
5into the Build Illinois Fund are subject to the pledge, claim
6and charge set forth in Section 12 of the Build Illinois Bond
7Act.
8 Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993 $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000

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11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021246,000,000
252022260,000,000
262023275,000,000

HB3714- 111 -LRB098 14370 HLH 49019 b
12024 275,000,000
22025 275,000,000
32026 279,000,000
42027 292,000,000
52028 307,000,000
62029 322,000,000
72030 338,000,000
82031 350,000,000
92032 350,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18 Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

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1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total Deposit",
4has been deposited.
5 Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois Tax
10Increment Fund 0.27% of 80% of the net revenue realized for the
11preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13 Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a 25-year
18period, the Department shall each month pay into the Energy
19Infrastructure Fund 80% of the net revenue realized from the
206.25% general rate on the selling price of Illinois-mined coal
21that was sold to an eligible business. For purposes of this
22paragraph, the term "eligible business" means a new electric
23generating facility certified pursuant to Section 605-332 of
24the Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26 Of the remainder of the moneys received by the Department

HB3714- 113 -LRB098 14370 HLH 49019 b
1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6 The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the retailer's last Federal
13income tax return. If the total receipts of the business as
14reported in the Federal income tax return do not agree with the
15gross receipts reported to the Department of Revenue for the
16same period, the retailer shall attach to his annual return a
17schedule showing a reconciliation of the 2 amounts and the
18reasons for the difference. The retailer's annual return to the
19Department shall also disclose the cost of goods sold by the
20retailer during the year covered by such return, opening and
21closing inventories of such goods for such year, costs of goods
22used from stock or taken from stock and given away by the
23retailer during such year, payroll information of the
24retailer's business during such year and any additional
25reasonable information which the Department deems would be
26helpful in determining the accuracy of the monthly, quarterly

HB3714- 114 -LRB098 14370 HLH 49019 b
1or annual returns filed by such retailer as provided for in
2this Section.
3 If the annual information return required by this Section
4is not filed when and as required, the taxpayer shall be liable
5as follows:
6 (i) Until January 1, 1994, the taxpayer shall be liable
7 for a penalty equal to 1/6 of 1% of the tax due from such
8 taxpayer under this Act during the period to be covered by
9 the annual return for each month or fraction of a month
10 until such return is filed as required, the penalty to be
11 assessed and collected in the same manner as any other
12 penalty provided for in this Act.
13 (ii) On and after January 1, 1994, the taxpayer shall
14 be liable for a penalty as described in Section 3-4 of the
15 Uniform Penalty and Interest Act.
16 The chief executive officer, proprietor, owner or highest
17ranking manager shall sign the annual return to certify the
18accuracy of the information contained therein. Any person who
19willfully signs the annual return containing false or
20inaccurate information shall be guilty of perjury and punished
21accordingly. The annual return form prescribed by the
22Department shall include a warning that the person signing the
23return may be liable for perjury.
24 The provisions of this Section concerning the filing of an
25annual information return do not apply to a retailer who is not
26required to file an income tax return with the United States

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1Government.
2 As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9 Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13 For greater simplicity of administration, manufacturers,
14importers and wholesalers whose products are sold at retail in
15Illinois by numerous retailers, and who wish to do so, may
16assume the responsibility for accounting and paying to the
17Department all tax accruing under this Act with respect to such
18sales, if the retailers who are affected do not make written
19objection to the Department to this arrangement.
20 Any person who promotes, organizes, provides retail
21selling space for concessionaires or other types of sellers at
22the Illinois State Fair, DuQuoin State Fair, county fairs,
23local fairs, art shows, flea markets and similar exhibitions or
24events, including any transient merchant as defined by Section
252 of the Transient Merchant Act of 1987, is required to file a
26report with the Department providing the name of the merchant's

HB3714- 116 -LRB098 14370 HLH 49019 b
1business, the name of the person or persons engaged in
2merchant's business, the permanent address and Illinois
3Retailers Occupation Tax Registration Number of the merchant,
4the dates and location of the event and other reasonable
5information that the Department may require. The report must be
6filed not later than the 20th day of the month next following
7the month during which the event with retail sales was held.
8Any person who fails to file a report required by this Section
9commits a business offense and is subject to a fine not to
10exceed $250.
11 Any person engaged in the business of selling tangible
12personal property at retail as a concessionaire or other type
13of seller at the Illinois State Fair, county fairs, art shows,
14flea markets and similar exhibitions or events, or any
15transient merchants, as defined by Section 2 of the Transient
16Merchant Act of 1987, may be required to make a daily report of
17the amount of such sales to the Department and to make a daily
18payment of the full amount of tax due. The Department shall
19impose this requirement when it finds that there is a
20significant risk of loss of revenue to the State at such an
21exhibition or event. Such a finding shall be based on evidence
22that a substantial number of concessionaires or other sellers
23who are not residents of Illinois will be engaging in the
24business of selling tangible personal property at retail at the
25exhibition or event, or other evidence of a significant risk of
26loss of revenue to the State. The Department shall notify

HB3714- 117 -LRB098 14370 HLH 49019 b
1concessionaires and other sellers affected by the imposition of
2this requirement. In the absence of notification by the
3Department, the concessionaires and other sellers shall file
4their returns as otherwise required in this Section.
5(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
6eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
7revised 9-9-13.)
8 Section 99. Effective date. This Act takes effect upon
9becoming law.