Sen. Toi W. Hutchinson

Filed: 1/24/2017

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1 AMENDMENT TO SENATE BILL 9

2 AMENDMENT NO. ______. Amend Senate Bill 9 by replacing

3 everything after the enacting clause with the following:

4 "ARTICLE 1. BUSINESS OPPORTUNITY TAX ACT

5 Section 1-1. Short title. This Act may be cited as the

6 Business Opportunity Tax Act.

7 Section 1-5. Definitions. As used in this Act:

8 "Compensation" means wages, salaries, commissions, and any

9 other form of remuneration paid to employees or independent

10 contractors for personal services.

11 "Department" means the Department of Revenue.

12 "Illinois payroll" means compensation paid by a qualified

13 business to residents of the State during the taxpayer's

14 taxable year.

15 "Qualified business" means an individual, trust, estate,

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1 partnership, association, firm, company, corporation, or

2 limited liability company that issues a Form W-2 or a Form 1099

3 to a resident of the State.

4 "Resident" has the meaning given to that term in Section

5 1501 of the Illinois Income Tax Act.

6 "Taxable year" has the meaning given to that term in

7 Section 1501 of the Illinois Income Tax Act.

8 Section 1-10. Tax imposed.

9 (a) Beginning on July 1, 2017, a tax is hereby imposed upon

10 each qualified business for the privilege of doing business in

11 the State.

12 (b) The tax under subsection (a) shall be imposed in the

13 following amounts:

14 (1) if the taxpayer's total Illinois payroll for the

15 taxable year is less than $100,000, then then annual tax is

16 $225;

17 (2) if the taxpayer's total Illinois payroll for the

18 taxable year is $100,000 or more but less than $250,000,

19 then the annual tax is $750;

20 (3) if the taxpayer's total Illinois payroll for the

21 taxable year is $250,000 or more but less than $500,000,

22 then the annual tax is $3,750;

23 (4) if the taxpayer's total Illinois payroll for the

24 taxable year is $500,000 or more but less than $1,500,000,

25 then the annual tax is $7,500; and

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1 (5) if the taxpayer's total Illinois payroll for the

2 taxable year is $1,500,000 or more, then the annual tax is

3 $15,000.

4 Section 1-15. Exemptions. The following are exempt from

5 taxation under this Act:

6 (1) governmental employers described in Section 707 of

7 the Illinois Income Tax Act; and

8 (2) not-for-profit corporations that are exempt from

9 taxation under Sections 501(c) or 501(d) of the Internal

10 Revenue Code or organized under the General Not For Profit

11 Corporation Act of 1986.

12 Section 1-20. Annual return. Taxpayers who are liable for

13 the payment of the tax imposed under this Act may comply with

14 the requirements of this Act by filing an annual return, in the

15 form and manner required by the Department, and paying the

16 taxes required to be paid on or before the 15th day of the

17 fourth month following the close of the taxable year with

18 respect to which the tax under this Act is being paid.

19 Section 1-25. Collection authority.The Department shall

20 collect the taxes imposed by this Act. Money collected pursuant

21 to this Act shall be paid into the General Revenue Fund in the

22 State treasury.

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1 Section 1-30. Applicability of the Illinois Income Tax Act.

2 The provisions of Articles 9, 10, 11, and 12 of the Illinois

3 Income Tax Act (other than Section 901 of the Illinois Income

4 Tax Act) which are not inconsistent with this Act shall apply

5 to the subject matter of this Act to the same extent as if

6 those provisions were included in this Act.

7 Section 1-35. Rulemaking. The Department may adopt, in

8 accordance with the requirements of the Illinois

9 Administrative Procedure Act, any rule that is necessary to

10 implement this Act.

11 ARTICLE 5. STORAGE EXCISE TAX

12 Section 5-1. Short title. This Act may be cited as the

13 Storage Excise Tax Act.

14 Section 5-5. Definitions.

15 "Business" means any person engaged in activities with the

16 object of profit or gain, either directly or indirectly, to the

17 person.

18 "Cost price" means the consideration paid by a provider to

19 a supplier for a purchase of tangible personal property valued

20 in money, whether paid in money or otherwise, including cash,

21 credits and services, and shall be determined without any

22 deduction on account of taxes paid by the provider for the

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1 purchase of tangible personal property or on account of any

2 expenses that are part of the selling price of the tangible

3 personal property taxable under the Retailers' Occupation Tax

4 Act and the Use Tax Act that are charged to the provider by a

5 supplier. When a provider contracts out part or all of the

6 services required in his sale of service subject to tax under

7 this Act, it shall be presumed that the cost price to the

8 provider of the tangible personal property transferred to him

9 or her by his or her subcontractor is equal to 50% of the

10 subcontractor's charges to the provider in the absence of proof

11 of the consideration paid for the tangible personal property by

12 the provider to the subcontractor.

13 "Department" means the Department of Revenue.

14 "Director" means the Director of Revenue.

15 "Person" means any natural individual, firm, trust,

16 estate, partnership, association, joint stock company, joint

17 venture, corporation, limited liability company, or a

18 receiver, trustee, guardian, or other representative appointed

19 by order of any court.

20 "Provider" means any person engaged in the business of

21 providing, furnishing or supplying space for storage to persons

22 for use and not for resale.

23 "Provider maintaining a place of business in this State",

24 or any like term, means and includes any of the following:

25 (1) A provider having or maintaining within this State,

26 directly or by a subsidiary, an office, distribution house,

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1 sales house, warehouse or other place of business, or any

2 agent or other representative operating within this State

3 under the authority of the provider or its subsidiary,

4 irrespective of whether such place of business or agent or

5 other representative is located here permanently or

6 temporarily, or whether such provider or subsidiary is

7 licensed to do business in this State.

8 (2) A provider having a contract with a person located

9 in this State under which the person, for a commission or

10 other consideration based upon the sale of services subject

11 to tax under this Act by the provider, directly or

12 indirectly refers potential customers to the provider by

13 providing to the potential customers a promotional code or

14 other mechanism that allows the provider to track purchases

15 referred by such persons. Examples of mechanisms that allow

16 the provider to track purchases referred by such persons

17 include but are not limited to the use of a link on the

18 person's Internet website, promotional codes distributed

19 through the person's hand-delivered or mailed material,

20 and promotional codes distributed by the person through

21 radio or other broadcast media. The provisions of this

22 paragraph (2) shall apply only if the cumulative purchase

23 prices from sales of services subject to tax under this Act

24 by the provider to purchasers who are referred to the

25 provider by all persons in this State under such contracts

26 exceed $10,000 during the preceding 4 quarterly periods

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1 ending on the last day of March, June, September, and

2 December. A provider meeting the requirements of this

3 paragraph (2) shall be presumed to be maintaining a place

4 of business in this State but may rebut this presumption by

5 submitting proof that the referrals or other activities

6 pursued within this State by such persons were not

7 sufficient to meet the nexus standards of the United States

8 Constitution during the preceding 4 quarterly periods.

9 (3) A provider having a contract with a person located

10 in this State under which:

11 (A) the provider sells the same or substantially

12 similar service subject to tax under this Act as the

13 person located in this State and does so using an

14 identical or substantially similar name, trade name,

15 or trademark as the person located in this State; and

16 (B) the provider provides a commission or other

17 consideration to the person located in this State based

18 upon the sale of services subject to tax under this Act

19 by the provider.

20 The provisions of this paragraph (3) shall apply only

21 if the cumulative purchase prices from sales of services

22 subject to tax under this Act by the provider to purchasers

23 in this State under all such contracts exceed $10,000

24 during the preceding 4 quarterly periods ending on the last

25 day of March, June, September, and December.

26 "Purchase of service" means the acquisition, for a valuable

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1 consideration, of space for storage.

2 "Purchase price" means the consideration paid for a

3 purchase of service, all services directly related to the

4 purchase of service, and all tangible personal property

5 transferred incident to the purchase of service, valued in

6 money, whether received in money or otherwise, including cash,

7 gift cards, reward points, credits, and property and shall be

8 determined without any deduction on account of the cost of

9 materials used, labor or service costs, or any other expense

10 whatsoever. However, "purchase price" shall not include

11 consideration paid for:

12 (1) any charge for a dishonored check;

13 (2) any finance or credit charge, penalty or charge for

14 delayed payment, or discount for prompt payment;

15 (3) any purchase by a purchaser if the provider is

16 prohibited by federal or State constitution, treaty,

17 convention, statute or court decision from collecting the

18 tax from such purchaser;

19 (4) the isolated or occasional sale of services subject

20 to tax under this Act by a person who does not hold himself

21 out as being engaged (or who does not habitually engage) in

22 selling such service; and

23 (5) any amounts added to a purchaser's bills because of

24 charges made pursuant to the tax imposed by this Act.

25 In case credit is extended, the amount thereof shall be

26 included only as and when payments are made.

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1 "Purchaser" means any person who, for a valuable

2 consideration, acquires storage space for use and not for

3 resale.

4 "Storage" means the retaining or keeping of tangible

5 personal property in this State for any purpose.

6 "Space for storage" means (i) secure areas, such as rooms,

7 units, compartments or containers, whether accessible from

8 outside or from within a building, that are designated for the

9 use of a purchaser, where the purchaser can store and retrieve

10 property, including self-storage units, mini-storage units,

11 and areas by any other name; (ii) any parking lot, ramp, or

12 parking garage for a vehicle, whether the vehicle is parked by

13 the operator of the vehicle or by an attendant; (iii) any

14 aircraft parking area, ramp, or hanger; (iv) any boat slip,

15 dock, or dry dock; (v) any recreational vehicle parking area or

16 garage; and (vi) any other areas for storage or parking of

17 tangible personal property.

18 "Self-storage or "mini-storage" includes storage lockers

19 or storage units in apartment complexes (if the locker or unit

20 is utilized at the tenant's option and includes payment of a

21 fee in addition to apartment rental), and in amusement parks,

22 water parks, recreational facilities, and other locations

23 where lockers are rented for self-storage.

24 "Supplier" means any person who makes sales of tangible

25 personal property to providers for subsequent transfer

26 incident to a sale of service subject to tax under this Act.

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1 "Use" means the exercise by any person of any right or

2 power over, or the enjoyment of, the services subject to tax

3 under this Act.

4 Section 5-10. Imposition of tax; calculation of tax.

5 (a) Effective January 1, 2018, except as otherwise provided

6 in this Section, a tax is imposed on the privilege of using in

7 this State space for storage purchased for use and not for

8 resale at the rate of 5% of the purchase price for the space

9 for storage.

10 (b) Except as otherwise provided in subsection (e), if

11 tangible personal property is transferred incident to a

12 purchase of service, and if the provider separately states on

13 the invoice the cost price of the tangible personal property

14 transferred incident to the purchase of service, the tax is

15 imposed on the difference between the total purchase price and

16 the provider's cost price of the tangible personal property

17 transferred.

18 (c) Except as otherwise provided in subsection (e), if

19 tangible personal property is transferred incident to a

20 purchase of service, and if the provider does not separately

21 state on the invoice the cost price of the tangible personal

22 property transferred incident to the purchase of service, tax

23 is imposed on 80% of the purchase price.

24 (d) Except as otherwise provided in subsection (e), a

25 provider that transfers tangible personal property incident to

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1 a sale of service subject to tax under this Act shall make an

2 annual election prior to December 31 of each year to pay the

3 tax imposed by this Act under either subsection (b) or

4 subsection (c) for the following calendar year. A provider may

5 not make an election regarding the method of calculating tax on

6 a transaction-by-transaction basis. For a provider that fails

7 to make an election pursuant to this subsection, the tax is

8 imposed on 80% of the purchase price.

9 (e) A provider making sales of services subject to tax

10 under this Act in which the aggregate annual cost price of

11 tangible personal property transferred incident to all sales of

12 services subject to tax under this Act is less than 3% of the

13 aggregate annual total purchase prices from all sales of

14 services subject to tax under this Act, may annually elect to

15 calculate tax on 100% of the total purchase price for each

16 purchase of service. A provider that does not elect to

17 calculate tax as provided in this subsection must separately

18 state on the invoice the cost price of the tangible personal

19 property transferred incident to a purchase of service and

20 calculate tax pursuant to subsection (b).

21 A provider making an election to calculate tax under this

22 subsection may provide resale certificates under Section 2c of

23 the Retailers' Occupation Tax Act to his or her suppliers of

24 tangible personal property that will be transferred incident to

25 a sale of service subject to tax under this Act only if the

26 provider also makes sales of that tangible personal property at

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1 retail. A provider that provides resale certificates to his or

2 her supplier must pay retailers' occupation tax on the portion

3 of the tangible personal property that is sold at retail.

4 Providers who do not also make sales of that tangible

5 personal property at retail may not provide suppliers with

6 certificates of resale, and their purchases of tangible

7 personal property are subject to tax under the Use Tax Act.

8 (f) If any provider erroneously collects tax or collects

9 more from the purchaser than the purchaser's liability for the

10 transaction, the purchaser shall have a legal right to claim a

11 refund of such amount from such provider. However, if such

12 amount is not refunded to the purchaser for any reason, the

13 provider is liable to pay such amount to the Department.

14 (g) The tax imposed by this Section is not imposed with

15 respect to any transaction in interstate commerce, to the

16 extent such transaction may not, under the Constitution and

17 statutes of the United States, be made the subject of taxation

18 by this State.

19 Section 5-15. Transactions involving subcontractors.

20 Providers making purchases of service from a subcontractor are

21 exempt from tax under this Act in accordance with paragraph (1)

22 of subsection (a) of Section 5-25. However, this exemption does

23 not apply to use tax due on the tangible personal property

24 transferred incident to the service. If a provider subcontracts

25 a service subject to tax under this Act in which tangible

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1 personal property is transferred, the provider does not incur a

2 use tax liability on the cost price of any tangible personal

3 property transferred to the provider by the subcontractor if

4 the subcontractor (i) has paid or will pay a use tax on his or

5 her cost price of any tangible personal property transferred to

6 the provider and (ii) certifies that fact in writing to the

7 provider.

8 Section 5-20. Multi-state exemption. To prevent actual

9 multi-state taxation of services that are subject to taxation

10 under this Act, any purchaser or provider, upon proof that the

11 purchaser or provider has paid a tax in another state on such

12 service, shall be allowed a credit against the tax imposed by

13 this Act, to the extent of the amount of the tax properly due

14 and paid in the other state.

15 Section 5-25. Exemptions.

16 (a) The following purchasers are exempt from the tax

17 imposed by this Act:

18 (1) Businesses making purchases of service for the

19 benefit of or in furtherance of the business. This

20 paragraph is exempt from the provisions of Section 5-60.

21 (2) Corporations, societies, associations,

22 foundations, or institutions organized and operated

23 exclusively for charitable, religious or educational

24 purposes that have been issued an active tax exemption

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1 number by the Department under Section 1g of the Retailers'

2 Occupation Tax Act. This paragraph is exempt from the

3 provisions of Section 5-60.

4 (3) The federal government and its instrumentalities

5 that have been issued an active tax exemption number by the

6 Department under Section 1g of the Retailers' Occupation

7 Tax Act. This paragraph is exempt from the provisions of

8 Section 5-60.

9 (4) Government bodies that have been issued an active

10 tax exemption number by the Department under Section 1g of

11 the Retailers' Occupation Tax Act. This paragraph is exempt

12 from the provisions of Section 5-60.

13 (b) The purchase of the following services is exempt from

14 the tax imposed by this Act:

15 (1) Services performed on tangible personal property

16 exempt under the Retailers' Occupation Tax Act, Use Tax

17 Act, Service Occupation Tax Act, or Service Use Tax Act.

18 This paragraph is exempt from the provisions of Section

19 5-60.

20 (2) Repair and maintenance services, to the extent that

21 those services are subject to a separate tax imposed by the

22 State. This paragraph is exempt from the provisions of

23 Section 5-60.

24 Section 5-30. Collection of tax.

25 (a) Beginning with bills issued or charges collected for a

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1 purchase of service on and after January 1, 2018, the tax

2 imposed by this Act shall be collected from the purchaser by

3 any provider maintaining a place of business in this State at

4 the rate stated in Section 5-10 with respect to the service

5 subject to tax under this Act sold by such provider to or for

6 the purchaser, and shall be remitted to the Department as

7 provided in Section 5-50 of this Act. All sales of services

8 subject to tax under this Act to a purchaser for use and not

9 for resale are presumed subject to tax collection. Providers

10 shall collect the tax from purchasers by adding the tax to the

11 amount of the purchase price received from the purchaser for

12 selling a service subject to tax under this Act to or for the

13 purchaser. The tax imposed by the Act shall, when collected, be

14 stated as a distinct item separate and apart from the purchase

15 price of the service subject to tax under this Act. However, if

16 it is not possible to state the tax separately, the Department

17 may, by rule, exempt the purchase from this requirement if

18 purchasers are notified by language on the invoice or other

19 written notification or notified by a sign that the tax is

20 included in the purchase price.

21 (b) Any person purchasing a service subject to tax under

22 this Act for use and not for resale as to which there has been

23 no charge made to him of the tax imposed by Section 5-10 shall

24 make payment of the tax imposed by Section 5-10 of this Act in

25 the form and manner provided by the Department not later than

26 the 20th day of the month following the month of purchase of

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1 the service.

2 Section 5-35. Registration of providers.

3 (a) A person who engages in business as a provider in this

4 State shall register with the Department. Application for a

5 certificate of registration shall be made to the Department, by

6 electronic means, in the form and manner prescribed by the

7 Department and shall contain any reasonable information the

8 Department may require. Upon receipt of the application for a

9 certificate of registration in proper form and manner, the

10 Department shall issue to the applicant a certificate of

11 registration.

12 The annual fee payable to the Department for each

13 certificate of registration shall be $75. The fee shall be

14 deposited into the Tax Compliance and Administration Fund. Each

15 applicant for a certificate of registration shall pay the fee

16 to the Department at the time of submitting its application for

17 certificate registration to the Department. The Department

18 shall require an applicant for a certificate of registration

19 under this Section to electronically pay the fee. A separate

20 annual fee shall be paid for each place of business at which a

21 person who is required to procure a certificate of registration

22 under this Section proposes to sell a service in Illinois

23 subject to tax under this Act.

24 (b) The Department may refuse to issue or reissue a

25 certificate of registration to any applicant for the reasons

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1 set forth in Section 2505-380 of the Department of Revenue Law

2 of the Civil Administrative Code of Illinois.

3 (c) Any person aggrieved by any decision of the Department

4 under this Section may, within 20 days after notice of such

5 decision, protest and request a hearing, whereupon the

6 Department shall give notice to such person of the time and

7 place fixed for such hearing and shall hold a hearing in

8 conformity with the provisions of this Act and then issue its

9 final administrative decision in the matter to such person. In

10 the absence of such a protest within 20 days, the Department's

11 decision shall become final without any further determination

12 being made or notice given.

13 Section 5-40. Revocation of certificate of registration.

14 (a) The Department may, after notice and a hearing as

15 provided herein, revoke the certificate of registration of any

16 person who violates any of the provisions of this Act or rule

17 adopted pursuant to this Act. Before revocation of a

18 certificate of registration, the Department shall, within 90

19 days after non-compliance and at least 7 days prior to the date

20 of the hearing, give the person so accused notice in writing of

21 the charge against him or her, and on the date designated shall

22 conduct a hearing upon this matter. The lapse of such 90-day

23 period shall not preclude the Department from conducting

24 revocation proceedings at a later date if necessary. Any

25 hearing held under this Section shall be conducted by the

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1 Director or by any officer or employee of the Department

2 designated in writing by the Director.

3 (b) The Department may revoke a certificate of registration

4 for the reasons set forth in Section 2505-380 of the Department

5 of Revenue Law of the Civil Administrative Code of Illinois.

6 (c) Upon the hearing of any such proceeding, the Director,

7 or any officer or employee of the Department designated in

8 writing by the Director, may administer oaths, and the

9 Department may procure by its subpoena the attendance of

10 witnesses and, by its subpoena duces tecum, the production of

11 relevant books and papers. Any circuit court, upon application

12 either of the accused or of the Department, may, by order duly

13 entered, require the attendance of witnesses and the production

14 of relevant books and papers before the Department in any

15 hearing relating to the revocation of certificates of

16 registration. Upon refusal or neglect to obey the order of the

17 court, the court may compel obedience thereof by proceedings

18 for contempt.

19 (d) The Department may, by application to any circuit

20 court, obtain an injunction requiring any person who engages in

21 business as a provider under this Act to obtain a certificate

22 of registration. Upon refusal or neglect to obey the order of

23 the court, the court may compel obedience by proceedings for

24 contempt.

25 Section 5-45. Tax collected as debt owed to State. The tax

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1 herein required to be collected by any provider maintaining a

2 place of business in this State, and any such tax collected by

3 that person, shall constitute a debt owed by that person to

4 this State.

5 Section 5-50. Return and payment of tax by provider.

6 (a) Each provider who is required or authorized to collect

7 the tax imposed by this Act shall make a return to the

8 Department on or before the 20th day of each month for the

9 preceding calendar month stating the following:

10 (1) the provider's name;

11 (2) the address of the provider's principal place of

12 business and the address of the principal place of business

13 (if that is a different address) from which the provider

14 engaged in the business of selling a service subject to tax

15 under this Act;

16 (3) total purchase price received by the provider for

17 all services subject to tax under this Act;

18 (4) amount of tax;

19 (5) the signature of the provider; and

20 (6) such other information as the Department

21 reasonably may require.

22 Any amount that is required to be shown or reported on any

23 return or other document under this Act shall, if that amount

24 is not a whole-dollar amount, be increased to the nearest

25 whole-dollar amount if the fractional part of a dollar is $0.50

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1 or more and decreased to the nearest whole-dollar amount if the

2 fractional part of a dollar is less than $0.50. If a total

3 amount of less than $1 is payable, refundable, or creditable,

4 such amount shall be disregarded if it is less than $0.50 and

5 shall be increased to $1 if it is $0.50 or more.

6 The provider making the return provided for in this Section

7 shall, at the time of making such return, pay to the Department

8 the amount of tax imposed by this Act, less a discount of 1.75%

9 which is allowed to reimburse the provider for the expenses

10 incurred in keeping records, billing the purchaser, preparing

11 and filing returns, remitting the tax, and supplying data to

12 the Department upon request. No discount may be claimed by a

13 provider on returns not timely filed and for taxes not timely

14 remitted.

15 (b) If the average monthly tax liability to the Department

16 of the provider does not exceed $200, the Department may

17 authorize the provider's returns to be filed on a

18 quarter-annual basis, with the return for January, February,

19 and March of a given year being due by April 20 of such year;

20 with the return for April, May, and June of a given year being

21 due by July 20 of such year; with the return for July, August,

22 and September of a given year being due by October 20 of such

23 year; and with the return for October, November, and December

24 of a given year being due by January 20 of the following year.

25 If the average monthly tax liability to the Department of

26 the provider does not exceed $50, the Department may authorize

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1 the provider's returns to be filed on an annual basis, with the

2 return for a given year being due by January 20 of the

3 following year.

4 Such quarter-annual and annual returns, as to form and

5 substance, shall be subject to the same requirements as monthly

6 returns.

7 Notwithstanding any other provision in this Act concerning

8 the time within which a provider may file a return, any such

9 provider who ceases to engage in a kind of business which makes

10 the person responsible for filing returns under this Act shall

11 file a final return under this Act with the Department not more

12 than one month after discontinuing such business.

13 Each provider whose average monthly liability to the

14 Department under this Act was $10,000 or more during the

15 preceding calendar year, excluding the month of highest

16 liability and the month of lowest liability in such calendar

17 year, shall make estimated payments to the Department on or

18 before the 7th, 15th, 22nd, and last day of the month during

19 which tax liability to the Department is incurred in an amount

20 not less than the lower of either 22.5% of such provider's

21 actual tax liability for the month or 25% of such provider's

22 actual tax liability for the same calendar month of the

23 preceding year. The amount of such quarter-monthly payments

24 shall be credited against the final tax liability of such

25 provider's return for that month. Once applicable, the

26 requirement of the making of quarter-monthly payments to the

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1 Department by taxpayers having an average monthly tax liability

2 of $10,000 or more as determined in the manner provided in this

3 paragraph shall continue until such taxpayer's average monthly

4 liability to the Department during the preceding 4 complete

5 calendar quarters (excluding the month of highest liability and

6 the month of lowest liability) is less than $9,000 or until the

7 taxpayer's average monthly liability to the Department as

8 computed for each of the 4 preceding complete calendar quarters

9 is less than $10,000. However, if a taxpayer can show the

10 Department that a substantial change in the taxpayer's business

11 has occurred which causes the taxpayer to anticipate that his

12 average monthly tax liability for the reasonably foreseeable

13 future will fall below the $10,000 threshold stated above, then

14 the taxpayer may petition the Department for a change in the

15 taxpayer's reporting status. The Department shall change the

16 taxpayer's reporting status unless it finds that such change is

17 seasonal in nature and not likely to be long term. If any such

18 quarter-monthly payment is not paid at the time or in the

19 amount required by this Section, then the taxpayer shall be

20 liable for penalties and interest on the difference between the

21 minimum amount due as a payment and the amount of such

22 quarter-monthly payment actually and timely paid, except

23 insofar as the taxpayer has previously made payments for that

24 month to the Department in excess of the minimum payments

25 previously due as provided in this Section. The Department

26 shall adopt rules to govern the quarter-monthly payment amount

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1 and quarter-monthly payment dates for taxpayers who file on

2 other than a calendar monthly basis.

3 If any payment provided for in this Section exceeds the

4 taxpayer's liabilities under this Act, as shown on an original

5 monthly return, the Department shall, if requested by the

6 taxpayer, issue to the taxpayer a credit memorandum no later

7 than 30 days after the date of payment. The credit evidenced by

8 such credit memorandum may be assigned by the taxpayer to a

9 similar taxpayer under this Act, in accordance with reasonable

10 rules and regulations to be prescribed by the Department. If no

11 such request is made, the taxpayer may credit such excess

12 payment against tax liability subsequently to be remitted to

13 the Department under this Act, in accordance with reasonable

14 rules adopted by the Department. If the Department subsequently

15 determines that all or any part of the credit taken was not

16 actually due to the taxpayer, the taxpayer's 1.75% discount

17 shall be reduced by 1.75% of the difference between the credit

18 taken and that actually due, and that taxpayer shall be liable

19 for penalties and interest on such difference.

20 (c) A provider who has a tax liability in the amount set

21 forth in subsection (b) of Section 2505-210 of the Department

22 of Revenue Law of the Civil Administrative Code of Illinois

23 shall make all payments required by rules of the Department by

24 electronic funds transfer. Any provider not required to make

25 payments by electronic funds transfer may make payments by

26 electronic funds transfer with the permission of the

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1 Department. All providers required to make payments by

2 electronic funds transfer and any providers authorized to

3 voluntarily make payments by electronic funds transfer shall

4 make those payments in the manner authorized by the Department.

5 (d) If a provider fails to sign a return within 30 days

6 after the proper notice and demand for signature by the

7 Department is received by the provider, the return shall be

8 considered valid and any amount shown to be due on the return

9 shall be deemed assessed.

10 Section 5-55. Claims; credit memorandum or refunds. If it

11 appears, after claim therefore filed with the Department, that

12 an amount of tax or penalty has been paid to the Department by

13 the taxpayer which was not due under this Act, whether as the

14 result of a mistake of fact or an error of law, except as

15 hereinafter provided, then the Department shall issue a credit

16 memorandum or refund to the person who made the erroneous

17 payment or, if that person has died or become a person under

18 legal disability, to his or her legal representative, as such.

19 If it is determined that the Department should issue a

20 credit or refund under this Act, the Department may first apply

21 the amount thereof against any amount of tax or penalty due

22 under this Act, or any other Act administered by the

23 Department, from the person entitled to such credit or refund.

24 For this purpose, if proceedings are pending to determine

25 whether or not any tax or penalty is due under this Act, or any

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1 other Act administered by the Department, from such person, the

2 Department may withhold issuance of the credit or refund

3 pending the final disposition of such proceedings and may apply

4 such credit or refund against any amount found to be due to the

5 Department under this Act, or any other Act administered by the

6 Department, as a result of such proceedings. The balance, if

7 any, of the credit or refund shall be issued to the person

8 entitled thereto.

9 If no tax or penalty is due and no proceeding is pending to

10 determine whether such taxpayer is indebted to the Department

11 for tax or penalty, the credit memorandum or refund shall be

12 issued to the claimant; or (in the case of a credit memorandum)

13 the credit memorandum may be assigned and set over by the

14 lawful holder thereof, subject to reasonable rules of the

15 Department, to any other person who is subject to this Act, and

16 the amount thereof shall be applied by the Department against

17 any tax or penalty due or to become due under this Act from

18 such assignee.

19 As to any claim filed hereunder with the Department on and

20 after each January 1 and July 1, no amount of tax or penalty

21 erroneously paid (either in total or partial liquidation of a

22 tax or penalty under this Act) more than 3 years prior to such

23 January 1 and July 1, respectively, shall be credited or

24 refunded, except that if both the Department and the taxpayer

25 have agreed to an extension of time to issue a notice of tax

26 liability under this Act, the claim may be filed at any time

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1 prior to the expiration of the period agreed upon.

2 No claim may be allowed for any amount paid to the

3 Department, whether paid voluntarily or involuntarily, if paid

4 in total or partial liquidation of an assessment which had

5 become final before the claim for credit or refund to recover

6 the amount so paid is filed with the Department, or if paid in

7 total or partial liquidation of a judgment or order of court.

8 No claim may be allowed or refund made for any amount paid by

9 or collected from any purchaser unless it appears that the

10 claimant has unconditionally repaid to the purchaser any amount

11 collected from the purchaser and retained by the claimant with

12 respect to the same transaction under the Act.

13 Any credit or refund that is allowed under this Act shall

14 bear interest at the rate and in the manner set forth in the

15 Uniform Penalty and Interest Act.

16 In case the Department determines that the claimant is

17 entitled to a refund, such refund shall be made only from such

18 appropriation as may be available for that purpose. If it

19 appears unlikely that the amount appropriated would permit

20 everyone having a claim allowed during the period covered by

21 such appropriation to elect to receive a cash refund, the

22 Department, by rule or regulation, shall provide for the

23 payment of refunds in hardship cases and shall define what

24 types of cases qualify as hardship cases.

25 Section 5-60. Sunset of exemptions, credits, and

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1 deductions. The application of every exemption, credit, and

2 deduction against tax imposed by this Act that becomes law

3 after the effective date of this Act shall be limited by a

4 reasonable and appropriate sunset date. A taxpayer is not

5 entitled to take the exemption, credit, or deduction beginning

6 on the sunset date and thereafter. If a reasonable and

7 appropriate sunset date is not specified in the Public Act that

8 creates the exemption, credit, or deduction, a taxpayer shall

9 not be entitled to take the exemption, credit, or deduction

10 beginning 5 years after the effective date of the Public Act

11 creating the exemption, credit, or deduction and thereafter.

12 Section 5-65. Distribution of proceeds. All moneys

13 received by the Department under this Act shall be paid into

14 the General Revenue Fund in the State Treasury.

15 Section 5-70. Rulemaking. The Department may adopt rules in

16 accordance with the Illinois Administrative Procedure Act and

17 prescribe forms relating to the administration and enforcement

18 of this Act as it deems appropriate.

19 Section 5-75. Incorporation by reference. All of the

20 provisions of Sections 2a, 2b, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,

21 5g, 5i, 5j, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of

22 the Retailers' Occupation Tax Act and all of the provisions of

23 the Uniform Penalty and Interest Act, that are not inconsistent

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1 with this Act, apply to providers to the same extent as if

2 those provisions were included in this Act. References in the

3 incorporated Sections of the Retailers' Occupation Tax Act to

4 retailers, to sellers, or to persons engaged in the business of

5 selling tangible personal property mean providers when used in

6 this Act. References in the incorporated Sections to sales of

7 tangible personal property mean sales of services subject to

8 tax under this Act when used in this Act.

9 ARTICLE 10. AMUSEMENT EXCISE TAX

10 Section 10-1. Short title. This Act may be cited as the

11 Amusement Excise Tax Act.

12 Section 10-5. Definitions.

13 "Amusement device" means any machine, which, upon the

14 insertion of a coin, slug, token, card, or similar object, or

15 upon any other payment method, may be operated by the public

16 generally for use as a game, entertainment, or amusement,

17 whether or not registering a score, and includes but is not

18 limited to such devices as jukeboxes, marble machines, pinball

19 machines, movie and video booths or stands, and all games,

20 operations or transactions similar thereto under whatever name

21 by which they may be indicated. If a machine consists of more

22 than one game monitor which permits individuals to play

23 separate games simultaneously, each separate game monitor

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1 shall be deemed an automatic amusement device.

2 "Amusement" means the following categories, for which any

3 charge is made, including, but not limited to, gate charges,

4 seat charges, ticket charges, dues, and entrance fees: (i) any

5 exhibition, performance, presentation or show for amusement,

6 athletic, entertainment, or recreational purposes, including,

7 but not limited to, animal acts and shows, antique shows,

8 automobile shows, ballets, baseball games, basketball games,

9 carnivals, circuses, flower shows, football games, live adult

10 entertainment, live performances (including but not limited

11 to, theatrical, dramatic, or musical performances), movies,

12 professional sporting events, races (including, but not

13 limited to, automobile, dog, horse races); (ii) access to or

14 use of a membership in clubs, whether open to the public or for

15 members only, including, but not limited to, athletic clubs,

16 country clubs, golf clubs, gun clubs, fishing clubs, flying

17 clubs, hunting clubs, swimming clubs, tennis clubs, and

18 yachting clubs; (iii) access to or use of amusement, athletic,

19 entertainment, or recreational equipment or facilities,

20 including, but not limited to, amusement park rides and games,

21 billiards and pool halls, bowling alleys, campgrounds, dance

22 halls, fishing ponds or lakes, golf courses, horseback riding

23 facilities, shooting galleries, swimming pools, and tennis

24 courts; and (iv) use of an amusement device.

25 "Cost price" means the consideration paid by a provider to

26 a supplier for a purchase of tangible personal property valued

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1 in money, whether paid in money or otherwise, including cash,

2 credits, and services, and shall be determined without any

3 deduction on account of taxes paid by the provider for the

4 purchase of tangible personal property or on account of any

5 expenses that are part of the selling price of the tangible

6 personal property taxable under the Retailers' Occupation Tax

7 Act and the Use Tax Act that are charged to the provider by a

8 supplier. When a provider contracts out part or all of the

9 services required in his sale of service subject to tax under

10 this Act, it shall be presumed that the cost price to the

11 provider of the tangible personal property transferred to him

12 or her by his or her subcontractor is equal to 50% of the

13 subcontractor's charges to the provider in the absence of proof

14 of the consideration paid for the tangible personal property by

15 the provider to the subcontractor.

16 "Department" means the Department of Revenue.

17 "Director" means the Director of Revenue.

18 "Person" means any natural individual, firm, trust,

19 estate, partnership, association, joint stock company, joint

20 venture, corporation, limited liability company, or a

21 receiver, trustee, guardian, or other representative appointed

22 by order of any court.

23 "Provider" means any person engaged in the business of

24 providing, furnishing, selling or supplying an amusement or

25 amusement device. Entrepreneurs, promoters, sponsors, or

26 managers of an amusement shall be regarded as providers for the

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1 purposes of this Act, if the entrepreneurs, promoters,

2 sponsors, or managers have control and direction of the

3 amusement, including activities such as controlling the sale of

4 admissions or admission tickets; controlling or regulating the

5 admittance of all persons to the event or place; determining

6 the nature of the amusement to be offered; deciding the scale

7 of the prices to be charged for admission; receiving the

8 proceeds from ticket sales, including amounts from ticket

9 agents or brokers; and deciding, or having the right to decide,

10 the disposition of the net profits, if any, realized from the

11 event. "Provider" also means persons that purchase amusement or

12 amusement devices for resale.

13 "Provider maintaining a place of business in this State",

14 or any like term, means and includes any of the following:

15 (1) A provider having or maintaining within this State,

16 directly or by a subsidiary, an office, distribution house,

17 sales house, warehouse or other place of business, or any

18 agent or other representative operating within this State

19 under the authority of the provider or its subsidiary,

20 irrespective of whether such place of business or agent or

21 other representative is located here permanently or

22 temporarily, or whether such provider or subsidiary is

23 licensed to do business in this State.

24 (2) A provider having a contract with a person located

25 in this State under which the person, for a commission or

26 other consideration based upon the sale of services subject

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1 to tax under this Act by the provider, directly or

2 indirectly refers potential customers to the provider by

3 providing to the potential customers a promotional code or

4 other mechanism that allows the provider to track purchases

5 referred by such persons. Examples of mechanisms that allow

6 the provider to track purchases referred by such persons

7 include but are not limited to the use of a link on the

8 person's Internet website, promotional codes distributed

9 through the person's hand-delivered or mailed material,

10 and promotional codes distributed by the person through

11 radio or other broadcast media. The provisions of this

12 paragraph (2) shall apply only if the cumulative purchase

13 prices from sales of services subject to tax under this Act

14 by the provider to purchasers who are referred to the

15 provider by all persons in this State under such contracts

16 exceed $10,000 during the preceding 4 quarterly periods

17 ending on the last day of March, June, September, and

18 December. A provider meeting the requirements of this

19 paragraph (2) shall be presumed to be maintaining a place

20 of business in this State but may rebut this presumption by

21 submitting proof that the referrals or other activities

22 pursued within this State by such persons were not

23 sufficient to meet the nexus standards of the United States

24 Constitution during the preceding 4 quarterly periods.

25 (3) A provider having a contract with a person located

26 in this State under which:

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1 (A) the provider sells the same or substantially

2 similar service subject to tax under this Act as the

3 person located in this State and does so using an

4 identical or substantially similar name, trade name,

5 or trademark as the person located in this State; and

6 (B) the provider provides a commission or other

7 consideration to the person located in this State based

8 upon the sale of services subject to tax under this Act

9 by the provider.

10 The provisions of this paragraph (3) shall apply only

11 if the cumulative purchase prices from sales of services

12 subject to tax under this Act by the provider to purchasers

13 in this State under all such contracts exceed $10,000

14 during the preceding 4 quarterly periods ending on the last

15 day of March, June, September, and December.

16 "Purchase of service" means the acquisition of an amusement

17 or use of an amusement device for a valuable consideration.

18 "Purchase price" means the consideration paid for a

19 purchase of service, all services directly related to the

20 purchase of service, and all tangible personal property

21 transferred incident to the purchase of service, valued in

22 money, whether received in money or otherwise, including cash,

23 gift cards, reward points, credits, and property and shall be

24 determined without any deduction on account of the cost of

25 materials used, labor or service costs, or any other expense

26 whatsoever. However, "purchase price" shall not include

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1 consideration paid for:

2 (1) any charge for a dishonored check;

3 (2) any finance or credit charge, penalty or charge for

4 delayed payment, or discount for prompt payment;

5 (3) any purchase by a purchaser if the provider is

6 prohibited by federal or State constitution, treaty,

7 convention, statute or court decision from collecting the

8 tax from such purchaser;

9 (4) the isolated or occasional sale of services subject

10 to tax under this Act by a person who does not hold himself

11 out as being engaged (or who does not habitually engage) in

12 selling such service; and

13 (5) any amounts added to a purchaser's bills because of

14 charges made pursuant to the tax imposed by this Act.

15 In case credit is extended, the amount thereof shall be

16 included only as and when payments are made.

17 "Purchaser" means any person who, for a valuable

18 consideration, acquires an amusement or uses an amusement

19 device.

20 "Supplier" means any person who makes sales of tangible

21 personal property to providers for subsequent transfer

22 incident to a sale of service subject to tax under this Act.

23 "Use" means the exercise by any person of any right or

24 power over, or the enjoyment of, the services subject to the

25 tax under this Act.

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1 Section 10-10. Imposition of tax; calculation of tax.

2 (a) Effective January 1, 2018, except as otherwise provided

3 in this Section, a tax is imposed at the rate of 5% of the

4 purchase price upon purchasers of: (i) amusements; (ii) the

5 privilege of access to clubs; (iii) the privilege of having

6 access to or use of amusement, athletic, entertainment and

7 recreational equipment and facilities; and (iv) the privilege

8 of using amusement devices.

9 (b) Except as otherwise provided in subsection (e), if

10 tangible personal property is transferred incident to a

11 purchase of service, and if the provider separately states on

12 the invoice the cost price of the tangible personal property

13 transferred incident to the purchase of service, the tax is

14 imposed on the difference between the total purchase price and

15 the provider's cost price of the tangible personal property

16 transferred.

17 (c) Except as otherwise provided in subsection (e), if

18 tangible personal property is transferred incident to a

19 purchase of service, and if the provider does not separately

20 state on the invoice the cost price of the tangible personal

21 property transferred incident to the purchase of service, tax

22 is imposed on 80% of the purchase price.

23 (d) Except as otherwise provided in subsection (e), a

24 provider that transfers tangible personal property incident to

25 a sale of service subject to tax under this Act shall make an

26 annual election prior to December 31 of each year to pay the

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1 tax imposed by this Act under either subsection (b) or

2 subsection (c) for the following calendar year. A provider may

3 not make an election regarding the method of calculating tax on

4 a transaction-by-transaction basis. For a provider that fails

5 to make an election pursuant to this subsection, the tax is

6 imposed on 80% of the purchase price.

7 (e) A provider making sales of services subject to tax

8 under this Act in which the aggregate annual cost price of

9 tangible personal property transferred incident to all sales of

10 services subject to tax under this Act is less than 3% of the

11 aggregate annual total purchase prices from all sales of

12 services subject to tax under this Act, may annually elect to

13 calculate tax on 100% of the total purchase price for each

14 purchase of service. A provider that does not elect to

15 calculate tax as provided in this subsection must separately

16 state on the invoice the cost price of the tangible personal

17 property transferred incident to a purchase of service and

18 calculate tax pursuant to subsection (b).

19 A provider making an election to calculate tax under this

20 subsection may provide resale certificates under Section 2c of

21 the Retailers' Occupation Tax Act to his or her suppliers of

22 tangible personal property that will be transferred incident to

23 sales of services subject to tax under this Act only if the

24 provider also makes sales of that tangible personal property at

25 retail. A provider that provides resale certificates to his or

26 her supplier must pay Retailers' Occupation Tax on the portion

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1 of the tangible personal property that is sold at retail.

2 Providers who do not also make sales of that tangible

3 personal property at retail may not provide suppliers with

4 certificates of resale, and their purchases of tangible

5 personal property are subject to tax under the Use Tax Act.

6 (f) If any provider erroneously collects tax or collects

7 more from the purchaser than the purchaser's liability for the

8 transaction, the purchaser shall have a legal right to claim a

9 refund of such amount from such provider. However, if such

10 amount is not refunded to the purchaser for any reason, the

11 provider is liable to pay such amount to the Department.

12 (g) The tax imposed by this Section is not imposed with

13 respect to any transaction in interstate commerce, to the

14 extent such transaction may not, under the Constitution and

15 statutes of the United States, be made the subject of taxation

16 by this State.

17 Section 10-15. Transactions involving subcontractors. If a

18 provider subcontracts a service subject to tax under this Act

19 in which tangible personal property is transferred, the

20 provider does not incur a use tax liability on the cost price

21 of any tangible personal property transferred to the provider

22 by the subcontractor if the subcontractor (i) has paid or will

23 pay use tax on his or her cost price of any tangible personal

24 property transferred to the provider and (ii) certifies that

25 fact in writing to the provider.

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1 Section 10-20. Multi-state exemption. To prevent actual

2 multi-state taxation of the services that are subject to

3 taxation under this Act, any purchaser or provider, upon proof

4 that the purchaser or provider has paid a tax in another state

5 on such service, shall be allowed a credit against the tax

6 imposed by this Act, to the extent of the amount of the tax

7 properly due and paid in the other state.

8 Section 10-25. Exemptions.

9 (a) The following purchasers are exempt from the tax

10 imposed by this Act:

11 (1) corporations, societies, associations,

12 foundations, or institutions organized and operated

13 exclusively for charitable, religious or educational

14 purposes that have been issued an active tax exemption

15 number by the Department under Section 1g of the Retailers'

16 Occupation Tax Act; this paragraph is exempt from the

17 provisions of Section 10-60;

18 (2) the federal government and its instrumentalities

19 that have been issued an active tax exemption number by the

20 Department under Section 1g of the Retailers' Occupation

21 Tax Act; this paragraph is exempt from the provisions of

22 Section 10-60; and

23 (3) government bodies that have been issued an active

24 tax exemption number by the Department under Section 1g of

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1 the Retailers' Occupation Tax Act; this paragraph is exempt

2 from the provisions of Section 10-60.

3 (b) The purchase of services performed on tangible personal

4 property that is exempt under the Retailers' Occupation Tax

5 Act, the Use Tax Act, the Service Occupation Tax Act, or the

6 Service Use Tax Act is exempt under this Act. This subsection

7 (b) is exempt from the provisions of Section 10-60.

8 Section 10-30. Collection of tax.

9 (a) Beginning with bills issued or charges collected for a

10 purchase of service on and after January 1, 2018, the tax

11 imposed by this Act shall be collected from the purchaser by

12 any provider maintaining a place of business in this State at

13 the rate stated in Section 10-10 with respect to the service

14 subject to tax under this Act sold by such provider to or for

15 the purchaser, and shall be remitted to the Department as

16 provided in Section 10-50 of this Act. All sales of services

17 subject to tax under this Act to a purchaser for use and not

18 for resale are presumed subject to tax collection. Providers

19 shall collect the tax from purchasers by adding the tax to the

20 amount of the purchase price received from the purchaser for

21 selling a service subject to tax under this Act to or for the

22 purchaser. The tax imposed by the Act shall when collected be

23 stated as a distinct item separate and apart from the purchase

24 price of the service subject to tax under this Act. However, if

25 it is not possible to state the tax separately, the Department

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1 may, by rule, exempt the purchase from this requirement if

2 purchasers are notified by language on the invoice or other

3 written notification or notified by a sign that the tax is

4 included in the purchase price.

5 (b) Any person purchasing a service subject to tax under

6 this Act for use and not for resale as to which there has been

7 no charge made to him of the tax imposed by Section 10-10 shall

8 make payment of the tax imposed by Section 10-10 of this Act in

9 the form and manner provided by the Department not later than

10 the 20th day of the month following the month of purchase of

11 the service.

12 Section 10-35. Registration of providers.

13 (a) A person who engages in business as a provider in this

14 State shall register with the Department. Application for a

15 certificate of registration shall be made to the Department, by

16 electronic means, in the form and manner prescribed by the

17 Department and shall contain any reasonable information the

18 Department may require. Upon receipt of the application for a

19 certificate of registration in proper form and manner, the

20 Department shall issue to the applicant a certificate of

21 registration.

22 The annual fee payable to the Department for each

23 certificate of registration shall be $75. The fee shall be

24 deposited into the Tax Compliance and Administration Fund. Each

25 applicant for a certificate of registration shall pay the fee

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1 to the Department at the time of submitting its application for

2 certificate registration to the Department. The Department

3 shall require an applicant for a certificate of registration

4 under this Section to electronically pay the fee. A separate

5 annual fee shall be paid for each place of business at which a

6 person who is required to procure a certificate of registration

7 under this Section proposes to sell a service in Illinois

8 subject to tax under this Act.

9 (b) The Department may refuse to issue or reissue a

10 certificate of registration to any applicant for the reasons

11 set forth in Section 2505-380 of the Department of Revenue Law

12 of the Civil Administrative Code of Illinois.

13 (c) Any person aggrieved by any decision of the Department

14 under this Section may, within 20 days after notice of such

15 decision, protest and request a hearing, whereupon the

16 Department shall give notice to such person of the time and

17 place fixed for such hearing and shall hold a hearing in

18 conformity with the provisions of this Act and then issue its

19 final administrative decision in the matter to such person. In

20 the absence of such a protest within 20 days, the Department's

21 decision shall become final without any further determination

22 being made or notice given. The term "administrative decision"

23 is as defined in Section 3-101 of the Code of Civil Procedure.

24 Section 10-40. Revocation of certificate of registration.

25 (a) The Department may, after notice and a hearing as

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1 provided herein, revoke the certificate of registration of any

2 person who violates any of the provisions of this Act or

3 regulation promulgated pursuant to this Act. Before revocation

4 of a certificate of registration, the Department shall, within

5 90 days after non-compliance and at least 7 days prior to the

6 date of the hearing, give the person so accused notice in

7 writing of the charge against him or her, and on the date

8 designated shall conduct a hearing upon this matter. The lapse

9 of such 90 day period shall not preclude the Department from

10 conducting revocation proceedings at a later date if necessary.

11 Any hearing held under this Section shall be conducted by the

12 Director or by any officer or employee of the Department

13 designated in writing by the Director.

14 (b) The Department may revoke a certificate of registration

15 for the reasons set forth in Section 2505-380 of the Department

16 of Revenue Law of the Civil Administrative Code of Illinois.

17 (c) Upon the hearing of any such proceeding, the Director

18 or any officer or employee of the Department designated in

19 writing by the Director may administer oaths, and the

20 Department may procure by its subpoena the attendance of

21 witnesses and, by its subpoena duces tecum, the production of

22 relevant books and papers. Any circuit court, upon application

23 either of the accused or of the Department, may, by order duly

24 entered, require the attendance of witnesses and the production

25 of relevant books and papers before the Department in any

26 hearing relating to the revocation of certificates of

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1 registration. Upon refusal or neglect to obey the order of the

2 court, the court may compel obedience thereof by proceedings

3 for contempt.

4 (d) The Department may, by application to any circuit

5 court, obtain an injunction requiring any person who engages in

6 business as a provider under this Act to obtain a certificate

7 of registration. Upon refusal or neglect to obey the order of

8 the court, the court may compel obedience by proceedings for

9 contempt.

10 Section 10-45. Tax collected as debt owed to State. The tax

11 herein required to be collected by any provider maintaining a

12 place of business in this State, and any such tax collected by

13 that person, shall constitute a debt owed by that person to

14 this State.

15 Section 10-50. Return and payment of tax by provider.

16 (a) Each provider who is required or authorized to collect

17 the tax imposed by this Act shall make a return to the

18 Department on or before the 20th day of each month for the

19 preceding calendar month stating the following:

20 (1) the provider's name;

21 (2) the address of the provider's principal place of

22 business and the address of the principal place of business

23 (if that is a different address) from which the provider

24 engaged in the business of selling a service subject to tax

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1 under this Act;

2 (3) the total purchase price received by the provider

3 for all services subject to tax under this Act;

4 (4) the amount of tax, computed upon item (3) at the

5 rate stated in Section 10-10;

6 (5) the signature of the provider; and

7 (6) such other information as the Department may

8 reasonably require.

9 Any amount that is required to be shown or reported on any

10 return or other document under this Act shall, if such amount

11 is not a whole-dollar amount, be increased to the nearest

12 whole-dollar amount if the fractional part of a dollar is $0.50

13 or more and decreased to the nearest whole-dollar amount if the

14 fractional part of a dollar is less than $0.50. If a total

15 amount of less than $1 is payable, refundable, or creditable,

16 such amount shall be disregarded if it is less than $0.50 and

17 shall be increased to $1 if it is $0.50 or more.

18 The provider making the return provided for in this Section

19 shall, at the time of making such return, pay to the Department

20 the amount of tax imposed by this Act, less a discount of 1.75%

21 which is allowed to reimburse the provider for the expenses

22 incurred in keeping records, billing the purchaser, preparing

23 and filing returns, remitting the tax, and supplying data to

24 the Department upon request. No discount may be claimed by a

25 provider on returns not timely filed and for taxes not timely

26 remitted.

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1 (b) If the average monthly tax liability to the Department

2 of the provider does not exceed $200, the Department may

3 authorize the provider's returns to be filed on a

4 quarter-annual basis, with the return for January, February,

5 and March of a given year being due by April 20 of such year;

6 with the return for April, May, and June of a given year being

7 due by July 20 of such year; with the return for July, August,

8 and September of a given year being due by October 20 of such

9 year; and with the return for October, November, and December

10 of a given year being due by January 20 of the following year.

11 If the average monthly tax liability to the Department of

12 the provider does not exceed $50, the Department may authorize

13 the provider's returns to be filed on an annual basis, with the

14 return for a given year being due by January 20 of the

15 following year.

16 Such quarter-annual and annual returns, as to form and

17 substance, shall be subject to the same requirements as monthly

18 returns.

19 Notwithstanding any other provision in this Act concerning

20 the time within which a provider may file a return, any such

21 provider who ceases to engage in a kind of business which makes

22 the person responsible for filing returns under this Act shall

23 file a final return under this Act with the Department not more

24 than one month after discontinuing such business.

25 Each provider whose average monthly liability to the

26 Department under this Act was $10,000 or more during the

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1 preceding calendar year, excluding the month of highest

2 liability and the month of lowest liability in such calendar

3 year, shall make estimated payments to the Department on or

4 before the 7th, 15th, 22nd, and last day of the month during

5 which tax liability to the Department is incurred in an amount

6 not less than the lower of either 22.5% of such provider's

7 actual tax liability for the month or 25% of such provider's

8 actual tax liability for the same calendar month of the

9 preceding year. The amount of such quarter-monthly payments

10 shall be credited against the final tax liability of such

11 provider's return for that month. Once applicable, the

12 requirement of the making of quarter-monthly payments to the

13 Department by taxpayers having an average monthly tax liability

14 of $10,000 or more as determined in the manner provided in this

15 paragraph shall continue until that taxpayer's average monthly

16 liability to the Department during the preceding 4 complete

17 calendar quarters (excluding the month of highest liability and

18 the month of lowest liability) is less than $9,000 or until

19 such taxpayer's average monthly liability to the Department as

20 computed for each of the 4 preceding complete calendar quarters

21 is less than $10,000. However, if a taxpayer can show the

22 Department that a substantial change in the taxpayer's business

23 has occurred which causes the taxpayer to anticipate that his

24 average monthly tax liability for the reasonably foreseeable

25 future will fall below the $10,000 threshold stated above, then

26 the taxpayer may petition the Department for a change in the

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1 taxpayer's reporting status. The Department shall change that

2 taxpayer's reporting status unless it finds that such change is

3 seasonal in nature and not likely to be long term. If any such

4 quarter-monthly payment is not paid at the time or in the

5 amount required by this Section, then the taxpayer shall be

6 liable for penalties and interest on the difference between the

7 minimum amount due as a payment and the amount of such

8 quarter-monthly payments actually and timely paid, except

9 insofar as the taxpayer has previously made payments for that

10 month to the Department in excess of the minimum payments

11 previously due as provided in this Section. The Department

12 shall adopt rules to govern the quarter-monthly payment amount

13 and quarter-monthly payment dates for taxpayers who file on

14 other than a calendar monthly basis.

15 If any payment provided for in this Section exceeds the

16 taxpayer's liabilities under this Act, as shown on an original

17 monthly return, the Department shall, if requested by the

18 taxpayer, issue to the taxpayer a credit memorandum no later

19 than 30 days after the date of payment. The credit evidenced by

20 such credit memorandum may be assigned by the taxpayer to a

21 similar taxpayer under this Act, in accordance with reasonable

22 rules and regulations to be prescribed by the Department. If no

23 such request is made, the taxpayer may credit such excess

24 payment against tax liability subsequently to be remitted to

25 the Department under this Act, in accordance with reasonable

26 rules and regulations prescribed by the Department. If the

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1 Department subsequently determines that all or any part of the

2 credit taken was not actually due to the taxpayer, the

3 taxpayer's 1.75% discount shall be reduced by 1.75% of the

4 difference between the credit taken and that actually due, and

5 that taxpayer shall be liable for penalties and interest on

6 such difference.

7 (c) A provider who has a tax liability in the amount set

8 forth in subsection (b) of Section 2505-210 of the Department

9 of Revenue Law of the Civil Administrative Code of Illinois

10 shall make all payments required by rules of the Department by

11 electronic funds transfer. Any provider not required to make

12 payments by electronic funds transfer may make payments by

13 electronic funds transfer with the permission of the

14 Department. All providers required to make payments by

15 electronic funds transfer and any providers authorized to

16 voluntarily make payments by electronic funds transfer shall

17 make those payments in the manner authorized by the Department.

18 (d) If a provider fails to sign a return within 30 days

19 after the proper notice and demand for signature by the

20 Department is received by the provider, the return shall be

21 considered valid and any amount shown to be due on the return

22 shall be deemed assessed.

23 (e) Any person engaged in business as a provider at the

24 Illinois State Fair, the DuQuoin State Fair, a county fair, an

25 art show, a flea market, or a similar exhibition or event may

26 be required to make a daily report to the Department setting

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1 forth the amount of purchases of service and make a daily

2 payment of the full amount of tax due. The Department shall

3 impose this requirement when it finds that there is a

4 significant risk of loss of revenue to the State at such an

5 exhibition or event. Such a finding shall be based on evidence

6 that a substantial number of providers who are not residents of

7 Illinois will be engaging in business at the exhibition or

8 event, or other evidence of a significant risk of loss of

9 revenue to the State. The Department shall notify providers

10 affected by the imposition of this requirement. In the absence

11 of notification by the Department, the providers shall file

12 their returns as otherwise required in this Section.

13 Section 10-55. Claims; credit memorandum or refunds. If it

14 appears, after claim therefore filed with the Department, that

15 an amount of tax or penalty has been paid to the Department by

16 the taxpayer which was not due under this Act, whether as the

17 result of a mistake of fact or an error of law, except as

18 hereinafter provided, then the Department shall issue a credit

19 memorandum or refund to the person who made the erroneous

20 payment or, if that person has died or become a person under

21 legal disability, to his or her legal representative, as such.

22 If it is determined that the Department should issue a

23 credit or refund under this Act, the Department may first apply

24 the amount thereof against any amount of tax or penalty due

25 under this Act, or any other Act administered by the

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1 Department, from the person entitled to such credit or refund.

2 For this purpose, if proceedings are pending to determine

3 whether or not any tax or penalty is due under this Act, or any

4 other Act administered by the Department, from such person, the

5 Department may withhold issuance of the credit or refund

6 pending the final disposition of such proceedings and may apply

7 such credit or refund against any amount found to be due to the

8 Department under this Act, or any other Act administered by the

9 Department, as a result of such proceedings. The balance, if

10 any, of the credit or refund shall be issued to the person

11 entitled thereto.

12 If no tax or penalty is due and no proceeding is pending to

13 determine whether such taxpayer is indebted to the Department

14 for tax or penalty, the credit memorandum or refund shall be

15 issued to the claimant; or (in the case of a credit memorandum)

16 the credit memorandum may be assigned and set over by the

17 lawful holder thereof, subject to reasonable rules of the

18 Department, to any other person who is subject to this Act, and

19 the amount thereof shall be applied by the Department against

20 any tax or penalty due or to become due under this Act from

21 such assignee.

22 As to any claim filed hereunder with the Department on and

23 after each January 1 and July 1, no amount of tax or penalty

24 erroneously paid (either in total or partial liquidation of a

25 tax or penalty under this Act) more than 3 years prior to such

26 January 1 and July 1, respectively, shall be credited or

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1 refunded, except that if both the Department and the taxpayer

2 have agreed to an extension of time to issue a notice of tax

3 liability under this Act, the claim may be filed at any time

4 prior to the expiration of the period agreed upon.

5 No claim may be allowed for any amount paid to the

6 Department, whether paid voluntarily or involuntarily, if paid

7 in total or partial liquidation of an assessment which had

8 become final before the claim for credit or refund to recover

9 the amount so paid is filed with the Department, or if paid in

10 total or partial liquidation of a judgment or order of court.

11 No claim may be allowed or refund made for any amount paid by

12 or collected from any purchaser unless it appears that the

13 claimant has unconditionally repaid to the purchaser any amount

14 collected from the purchaser and retained by the claimant with

15 respect to the same transaction under the Act.

16 Any credit or refund that is allowed under this Act shall

17 bear interest at the rate and in the manner set forth in the

18 Uniform Penalty and Interest Act.

19 In case the Department determines that the claimant is

20 entitled to a refund, such refund shall be made only from such

21 appropriation as may be available for that purpose. If it

22 appears unlikely that the amount appropriated would permit

23 everyone having a claim allowed during the period covered by

24 such appropriation to elect to receive a cash refund, the

25 Department, by rule or regulation, shall provide for the

26 payment of refunds in hardship cases and shall define what

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1 types of cases qualify as hardship cases.

2 Section 10-60. Sunset of exemptions, credits, and

3 deductions. The application of every exemption, credit, and

4 deduction against tax imposed by this Act that becomes law

5 after the effective date of this Act shall be limited by a

6 reasonable and appropriate sunset date. A taxpayer is not

7 entitled to take the exemption, credit, or deduction beginning

8 on the sunset date and thereafter. If a reasonable and

9 appropriate sunset date is not specified in the Public Act that

10 creates the exemption, credit, or deduction, a taxpayer shall

11 not be entitled to take the exemption, credit, or deduction

12 beginning 5 years after the effective date of the Public Act

13 creating the exemption, credit, or deduction and thereafter.

14 Section 10-65. Deposit of proceeds. Except as otherwise

15 provided in this Section, all moneys received by the Department

16 under this Act shall be paid into the General Revenue Fund.

17 Each month, from the moneys received by the Department under

18 this Act for the preceding month, the Department shall pay

19 $50,000 monthly into the Sexual Assault Services Prevention

20 Fund, a special fund in the State treasury, increased annually

21 on July 1 by the percentage increase in the Consumer Price

22 Index during the 12-month calendar year preceding that July 1.

23 For purposes of this Section "Consumer Price Index" means the

24 Consumer Price Index for All Urban Consumers for all items

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1 published by the United States Department of Labor.

2 Section 10-70. Rulemaking. The Department may adopt rules

3 under the Illinois Administrative Procedure Act and prescribe

4 forms relating to the administration and enforcement of this

5 Act as it deems appropriate.

6 Section 10-75. Incorporation by reference. All of the

7 provisions of Sections 2a, 2b, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,

8 5g, 5i, 5j, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of

9 the Retailers' Occupation Tax Act and all of the provisions of

10 the Uniform Penalty and Interest Act, that are not inconsistent

11 with this Act, apply to providers to the same extent as if

12 those provisions were included in this Act. References in the

13 incorporated Sections of the Retailers' Occupation Tax Act to

14 retailers, to sellers, or to persons engaged in the business of

15 selling tangible personal property mean providers when used in

16 this Act. References in the incorporated Sections to sales of

17 tangible personal property mean sales of services subject to

18 tax under this Act when used in this Act.

19 ARTICLE 15. REPAIR AND MAINTENANCE EXCISE TAX ACT

20 Section 15-1. Short title. This Act may be cited as the

21 Repair and Maintenance Excise Tax Act.

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1 Section 15-5. Definitions.

2 "Business" means any person engaged in activities with the

3 object of profit or gain, either directly or indirectly, to the

4 person.

5 "Cost price" means the consideration paid by a provider to

6 a supplier for a purchase of tangible personal property valued

7 in money, whether paid in money or otherwise, including cash,

8 credits and services, and shall be determined without any

9 deduction on account of taxes paid by the provider for the

10 purchase of tangible personal property or on account of any

11 expenses that are part of the selling price of the tangible

12 personal property taxable under the Retailers' Occupation Tax

13 Act and the Use Tax Act that are charged to the provider by a

14 supplier. When a provider contracts out part or all of the

15 services required in his sale of service subject to tax under

16 this Act, it shall be presumed that the cost price to the

17 provider of the tangible personal property transferred to him

18 or her by his or her subcontractor is equal to 50% of the

19 subcontractor's charges to the provider in the absence of proof

20 of the consideration paid for the tangible personal property by

21 the provider to the subcontractor.

22 "Department" means the Department of Revenue.

23 "Director" means the Director of Revenue.

24 "Person" means any natural individual, firm, trust,

25 estate, partnership, association, joint stock company, joint

26 venture, corporation, limited liability company, or a

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1 receiver, trustee, guardian, or other representative appointed

2 by order of any court.

3 "Provider" means any person engaged in the business of

4 repairing, servicing, altering, fitting, cleaning, painting,

5 coating, towing, inspecting, or maintaining tangible personal

6 property or tangible personal property that has been affixed to

7 real estate.

8 "Provider maintaining a place of business in this State",

9 or any like term, means and includes any of the following:

10 (1) A provider having or maintaining within this State,

11 directly or by a subsidiary, an office, distribution house,

12 sales house, warehouse or other place of business, or any

13 agent or other representative operating within this State

14 under the authority of the provider or its subsidiary,

15 irrespective of whether such place of business or agent or

16 other representative is located here permanently or

17 temporarily, or whether such provider or subsidiary is

18 licensed to do business in this State.

19 (2) A provider having a contract with a person located

20 in this State under which the person, for a commission or

21 other consideration based upon the sale of services subject

22 to tax under this Act by the provider, directly or

23 indirectly refers potential customers to the provider by

24 providing to the potential customers a promotional code or

25 other mechanism that allows the provider to track purchases

26 referred by such persons. Examples of mechanisms that allow

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1 the provider to track purchases referred by such persons

2 include but are not limited to the use of a link on the

3 person's Internet website, promotional codes distributed

4 through the person's hand-delivered or mailed material,

5 and promotional codes distributed by the person through

6 radio or other broadcast media. The provisions of this

7 paragraph (2) shall apply only if the cumulative purchase

8 prices from sales of services subject to tax under this Act

9 by the provider to purchasers who are referred to the

10 provider by all persons in this State under such contracts

11 exceed $10,000 during the preceding 4 quarterly periods

12 ending on the last day of March, June, September, and

13 December. A provider meeting the requirements of this

14 paragraph (2) shall be presumed to be maintaining a place

15 of business in this State but may rebut this presumption by

16 submitting proof that the referrals or other activities

17 pursued within this State by such persons were not

18 sufficient to meet the nexus standards of the United States

19 Constitution during the preceding 4 quarterly periods.

20 (3) A provider having a contract with a person located

21 in this State under which:

22 (A) the provider sells the same or substantially

23 similar service subject to tax under this Act as the

24 person located in this State and does so using an

25 identical or substantially similar name, trade name,

26 or trademark as the person located in this State; and

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1 (B) the provider provides a commission or other

2 consideration to the person located in this State based

3 upon the sale of services subject to tax under this Act

4 by the provider.

5 The provisions of this paragraph (3) shall apply only

6 if the cumulative purchase prices from sales of services

7 subject to tax under this Act by the provider to purchasers

8 in this State under all such contracts exceed $10,000

9 during the preceding 4 quarterly periods ending on the last

10 day of March, June, September, and December.

11 "Purchase of service" means the acquisition of the repair,

12 service, alteration, fitting, cleaning, painting, coating,

13 towing, inspection, or maintenance of tangible personal

14 property or tangible personal property that has been affixed to

15 real estate, for a valuable consideration.

16 "Purchase price" means the consideration paid for a

17 purchase of service, all services directly related to the

18 purchase of service, and all tangible personal property

19 transferred incident to the purchase of service, valued in

20 money, whether received in money or otherwise, including cash,

21 gift cards, reward points, credits, and property and shall be

22 determined without any deduction on account of the cost of

23 materials used, labor or service costs, or any other expense

24 whatsoever. However, "purchase price" shall not include

25 consideration paid for:

26 (1) any charge for a dishonored check;

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1 (2) any finance or credit charge, penalty or charge for

2 delayed payment, or discount for prompt payment;

3 (3) any purchase by a purchaser if the provider is

4 prohibited by federal or State constitution, treaty,

5 convention, statute or court decision from collecting the

6 tax from such purchaser;

7 (4) the isolated or occasional sale of services subject

8 to tax under this Act by a person who does not hold himself

9 out as being engaged (or who does not habitually engage) in

10 selling such service;

11 (5) any amounts added to a purchaser's bills because of

12 charges made pursuant to the tax imposed by this Act; and

13 (6) new construction, reconstruction, or expansion of

14 a building or structure.

15 In case credit is extended, the amount thereof shall be

16 included only as and when payments are made.

17 "Purchaser" means any person who acquires the repair,

18 service, alteration, fitting, cleaning, painting, coating,

19 towing, inspection, or maintenance of tangible personal

20 property or tangible personal property that has been affixed to

21 real estate, for a valuable consideration.

22 "Supplier" means any person who makes sales of tangible

23 personal property to providers for subsequent transfer

24 incident to a sale of service subject to tax under this Act.

25 "Use" means the exercise by any person of any right or

26 power over, or the enjoyment of, the services subject to tax

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1 under this Act.

2 Section 15-10. Imposition of tax; calculation of tax.

3 (a) Effective January 1, 2018, except as otherwise provided

4 in this Section, a tax is imposed upon the purchase, for use

5 and not for resale, of the repair, servicing, alteration,

6 fitting, cleaning, painting, coating, towing, inspection, or

7 maintenance of tangible personal property or tangible personal

8 property that has been affixed to real estate at the rate of 5%

9 of the purchase price.

10 (b) Except as otherwise provided in subsection (e), if

11 tangible personal property is transferred incident to a

12 purchase of service, and if the provider separately states on

13 the invoice the cost price of the tangible personal property

14 transferred incident to the purchase of service, the tax is

15 imposed on the difference between the total purchase price and

16 the provider's cost price of the tangible personal property

17 transferred.

18 (c) Except as otherwise provided in subsection (e), if

19 tangible personal property is transferred incident to a

20 purchase of service, and if the provider does not separately

21 state on the invoice the cost price of the tangible personal

22 property transferred incident to the purchase of service, tax

23 is imposed on 80% of the purchase price.

24 (d) Except as otherwise provided in subsection (e), a

25 provider that transfers tangible personal property incident to

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1 sales of service subject to tax under this Act shall make an

2 annual election prior to December 31 of each year to pay the

3 tax imposed by this Act under either subsection (b) or

4 subsection (c) for the following calendar year. A provider may

5 not make an election regarding the method of calculating tax on

6 a transaction-by-transaction basis. For a provider that fails

7 to make an election pursuant to this subsection, the tax is

8 imposed on 80% of the purchase price.

9 (e) A provider making sales of services subject to tax

10 under this Act in which the aggregate annual cost price of

11 tangible personal property transferred incident to all sales of

12 services subject to tax under this Act is less than 3% of the

13 aggregate annual total purchase prices from all sales of

14 services subject to tax under this Act, may annually elect to

15 calculate tax on 100% of the total purchase price for each

16 purchase of service. A provider that does not elect to

17 calculate tax as provided in this subsection must separately

18 state on the invoice the cost price of the tangible personal

19 property transferred incident to a purchase of service and

20 calculate tax pursuant to subsection (b).

21 A provider making an election to calculate tax under this

22 subsection may provide resale certificates under Section 2c of

23 the Retailers' Occupation Tax Act to his or her suppliers of

24 tangible personal property that will be transferred incident to

25 sales of services subject to tax under this Act only if the

26 provider also makes sales of that tangible personal property at

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1 retail. A provider that provides resale certificates to his or

2 her supplier must pay Retailers' Occupation Tax on the portion

3 of the tangible personal property that is sold at retail.

4 Providers who do not also make sales of that tangible

5 personal property at retail may not provide suppliers with

6 certificates of resale, and their purchases of tangible

7 personal property are subject to tax under the Use Tax Act.

8 (f) If any provider erroneously collects tax or collects

9 more from the purchaser than the purchaser's liability for the

10 transaction, the purchaser shall have a legal right to claim a

11 refund of such amount from such provider. However, if such

12 amount is not refunded to the purchaser for any reason, the

13 provider is liable to pay such amount to the Department.

14 (g) The tax imposed by this Section 15-10 is not imposed

15 with respect to any transaction in interstate commerce, to the

16 extent such transaction may not, under the Constitution and

17 statutes of the United States, be made the subject of taxation

18 by this State.

19 Section 15-15. Transactions involving subcontractors.

20 Providers making purchases of service from a subcontractor are

21 exempt from tax under this Act in accordance with paragraph (1)

22 of subsection (a) of Section 15-25. However, this exemption

23 does not apply to use tax due on the tangible personal property

24 transferred incident to the service. If a provider subcontracts

25 a service subject to tax under this Act in which tangible

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1 personal property is transferred, the provider does not incur a

2 use tax liability on the cost price of any tangible personal

3 property transferred to the provider by the subcontractor if

4 the subcontractor (i) has paid or will pay use tax on his or

5 her cost price of any tangible personal property transferred to

6 the provider and (ii) certifies that fact in writing to the

7 provider.

8 Section 15-20. Multi-state exemption. To prevent actual

9 multi-state taxation of services that are subject to taxation

10 under this Act, any purchaser or provider, upon proof that the

11 purchaser or provider has paid a tax in another state on such

12 service, shall be allowed a credit against the tax imposed by

13 this Act, to the extent of the amount of the tax properly due

14 and paid in the other state.

15 Section 15-25. Exemptions.

16 (a) The following purchasers are exempt from the tax

17 imposed by this Act:

18 (1) Businesses making purchases of service for the

19 benefit of or in furtherance of the business. This

20 paragraph is exempt from the provisions of Section 15-60.

21 (2) Corporations, societies, associations,

22 foundations, or institutions organized and operated

23 exclusively for charitable, religious, or educational

24 purposes that have been issued an active tax exemption

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1 number by the Department under Section 1g of the Retailers'

2 Occupation Tax Act. This paragraph is exempt from the

3 provisions of Section 15-60.

4 (3) The federal government and its instrumentalities

5 that have been issued an active tax exemption number by the

6 Department under Section 1g of the Retailers' Occupation

7 Tax Act. This paragraph is exempt from the provisions of

8 Section 15-60.

9 (4) Government bodies that have been issued an active

10 tax exemption number by the Department under Section 1g of

11 the Retailers' Occupation Tax Act. This paragraph is exempt

12 from the provisions of Section 15-60.

13 (b) The purchase of the following services is exempt from

14 the tax imposed by this Act:

15 (1) Laundry, dry cleaning, cloth pressing, dyeing, and

16 linen services, to the extent that those services are

17 subject to a separate tax imposed by the State. This

18 paragraph is exempt from the provisions of Section 15-60.

19 (2) Landscaping services, to the extent that those

20 services are subject to a separate tax imposed by the

21 State. This paragraph is exempt from the provisions of

22 Section 15-60.

23 (3) Services performed on tangible personal property

24 exempt under the Retailers' Occupation Tax Act, Use Tax

25 Act, Service Occupation Tax Act, or Service Use Tax Act.

26 This paragraph is exempt from the provisions of Section

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1 15-60.

2 Section 15-30. Collection of tax.

3 (a) Beginning with bills issued or charges collected for a

4 purchase of service on and after January 1, 2018, the tax

5 imposed by this Act shall be collected from the purchaser by

6 any provider maintaining a place of business in this State at

7 the rate stated in Section 15-10 with respect to the service

8 subject to tax under this Act sold by such provider to or for

9 the purchaser, and shall be remitted to the Department as

10 provided in Section 15-50 of this Act. All sales of services

11 subject to tax under this Act to a purchaser for use and not

12 for resale are presumed subject to tax collection. Providers

13 shall collect the tax from purchasers by adding the tax to the

14 amount of the purchase price received from the purchaser for

15 selling a service subject to tax under this Act to or for the

16 purchaser. The tax imposed by the Act shall, when collected, be

17 stated as a distinct item separate and apart from the purchase

18 price of the service subject to tax under this Act. However, if

19 it is not possible to state the tax separately, the Department

20 may by rule exempt the purchase from this requirement if

21 purchasers are notified by language on the invoice or other

22 written notification or notified by a sign that the tax is

23 included in the purchase price.

24 (b) Any person purchasing a service subject to tax under

25 this Act for use and not for resale as to which there has been

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1 no charge made to him of the tax imposed by Section 15-10 shall

2 make payment of the tax imposed by Section 15-10 of this Act in

3 the form and manner provided by the Department not later than

4 the 20th day of the month following the month of purchase of

5 the service.

6 Section 15-35. Registration of providers.

7 (a) A person who engages in business as a provider in this

8 State shall register with the Department. Application for a

9 certificate of registration shall be made to the Department, by

10 electronic means, in the form and manner prescribed by the

11 Department and shall contain any reasonable information the

12 Department may require. Upon receipt of the application for a

13 certificate of registration in proper form and manner, the

14 Department shall issue to the applicant a certificate of

15 registration.

16 The annual fee payable to the Department for each

17 certificate of registration shall be $75. The fee shall be

18 deposited into the Tax Compliance and Administration Fund. Each

19 applicant for a certificate of registration shall pay the fee

20 to the Department at the time of submitting its application for

21 certificate registration to the Department. The Department

22 shall require an applicant for a certificate of registration

23 under this Section to electronically pay the fee. A separate

24 annual fee shall be paid for each place of business at which a

25 person who is required to procure a certificate of registration

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1 under this Section proposes to sell a service in Illinois

2 subject to tax under this Act.

3 (b) The Department may refuse to issue or reissue a

4 certificate of registration to any applicant for the reasons

5 set forth in Section 2505-380 of the Department of Revenue Law

6 of the Civil Administrative Code of Illinois.

7 (c) Any person aggrieved by any decision of the Department

8 under this Section may, within 20 days after notice of such

9 decision, protest and request a hearing, whereupon the

10 Department shall give notice to such person of the time and

11 place fixed for such hearing and shall hold a hearing in

12 conformity with the provisions of this Act and then issue its

13 final administrative decision in the matter to such person. In

14 the absence of such a protest within 20 days, the Department's

15 decision shall become final without any further determination

16 being made or notice given.

17 Section 15-40. Revocation of certificate of registration.

18 (a) The Department may, after notice and a hearing as

19 provided herein, revoke the certificate of registration of any

20 person who violates any of the provisions of this Act or

21 regulation promulgated pursuant to this Act. Before revocation

22 of a certificate of registration, the Department shall, within

23 90 days after non-compliance and at least 7 days prior to the

24 date of the hearing, give the person so accused notice in

25 writing of the charge against him or her, and on the date

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1 designated shall conduct a hearing upon this matter. The lapse

2 of such 90-day period shall not preclude the Department from

3 conducting revocation proceedings at a later date if necessary.

4 Any hearing held under this Section shall be conducted by the

5 Director or by any officer or employee of the Department

6 designated in writing by the Director.

7 (b) The Department may revoke a certificate of registration

8 for the reasons set forth in Section 2505-380 of the Department

9 of Revenue Law of the Civil Administrative Code of Illinois.

10 (c) Upon the hearing of any such proceeding, the Director

11 or any officer or employee of the Department designated in

12 writing by the Director may administer oaths, and the

13 Department may procure by its subpoena the attendance of

14 witnesses and, by its subpoena duces tecum, the production of

15 relevant books and papers. Any circuit court, upon application

16 either of the accused or of the Department, may, by order duly

17 entered, require the attendance of witnesses and the production

18 of relevant books and papers before the Department in any

19 hearing relating to the revocation of certificates of

20 registration. Upon refusal or neglect to obey the order of the

21 court, the court may compel obedience thereof by proceedings

22 for contempt.

23 (d) The Department may, by application to any circuit

24 court, obtain an injunction requiring any person who engages in

25 business as a provider under this Act to obtain a certificate

26 of registration. Upon refusal or neglect to obey the order of

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1 the court, the court may compel obedience by proceedings for

2 contempt.

3 Section 15-45. Tax collected as debt owed to State. The tax

4 herein required to be collected by any provider maintaining a

5 place of business in this State, and any such tax collected by

6 that person, shall constitute a debt owed by that person to

7 this State.

8 Section 15-50. Return and payment of tax by provider.

9 (a) Each provider who is required or authorized to collect

10 the tax imposed by this Act shall make a return to the

11 Department on or before the 20th day of each month for the

12 preceding calendar month stating the following:

13 (1) the provider's name;

14 (2) the address of the provider's principal place of

15 business and the address of the principal place of business

16 (if that is a different address) from which the provider

17 engaged in the business of selling a service subject to tax

18 under this Act;

19 (3) total purchase price received by the provider for

20 all services subject to tax under this Act;

21 (4) amount of tax;

22 (5) the signature of the provider; and

23 (6) such other information as the Department

24 reasonably may require.

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1 Any amount which is required to be shown or reported on any

2 return or other document under this Act shall, if such amount

3 is not a whole-dollar amount, be increased to the nearest

4 whole-dollar amount if the fractional part of a dollar is $0.50

5 or more and decreased to the nearest whole-dollar amount if the

6 fractional part of a dollar is less than $0.50. If a total

7 amount of less than $1 is payable, refundable, or creditable,

8 such amount shall be disregarded if it is less than $0.50 and

9 shall be increased to $1 if it is $0.50 or more.

10 The provider making the return provided for in this Section

11 shall, at the time of making such return, pay to the Department

12 the amount of tax imposed by this Act, less a discount of 1.75%

13 which is allowed to reimburse the provider for the expenses

14 incurred in keeping records, billing the purchaser, preparing

15 and filing returns, remitting the tax, and supplying data to

16 the Department upon request. No discount may be claimed by a

17 provider on returns not timely filed and for taxes not timely

18 remitted.

19 (b) If the average monthly tax liability to the Department

20 of the provider does not exceed $200, the Department may

21 authorize the provider's returns to be filed on a

22 quarter-annual basis, with the return for January, February,

23 and March of a given year being due by April 20 of such year;

24 with the return for April, May, and June of a given year being

25 due by July 20 of such year; with the return for July, August,

26 and September of a given year being due by October 20 of such

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1 year; and with the return for October, November, and December

2 of a given year being due by January 20 of the following year.

3 If the average monthly tax liability to the Department of

4 the provider does not exceed $50, the Department may authorize

5 the provider's returns to be filed on an annual basis, with the

6 return for a given year being due by January 20 of the

7 following year.

8 Such quarter-annual and annual returns, as to form and

9 substance, shall be subject to the same requirements as monthly

10 returns.

11 Notwithstanding any other provision in this Act concerning

12 the time within which a provider may file a return, any such

13 provider who ceases to engage in a kind of business which makes

14 the person responsible for filing returns under this Act shall

15 file a final return under this Act with the Department not more

16 than one month after discontinuing such business.

17 Each provider whose average monthly liability to the

18 Department under this Act was $10,000 or more during the

19 preceding calendar year, excluding the month of highest

20 liability and the month of lowest liability in such calendar

21 year, shall make estimated payments to the Department on or

22 before the 7th, 15th, 22nd, and last day of the month during

23 which tax liability to the Department is incurred in an amount

24 not less than the lower of either 22.5% of such provider's

25 actual tax liability for the month or 25% of such provider's

26 actual tax liability for the same calendar month of the

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1 preceding year. The amount of such quarter-monthly payments

2 shall be credited against the final tax liability of such

3 provider's return for that month. Once applicable, the

4 requirement of the making of quarter-monthly payments to the

5 Department by taxpayers having an average monthly tax liability

6 of $10,000 or more as determined in the manner provided in this

7 paragraph shall continue until the taxpayer's average monthly

8 liability to the Department during the preceding 4 complete

9 calendar quarters (excluding the month of highest liability and

10 the month of lowest liability) is less than $9,000 or until the

11 taxpayer's average monthly liability to the Department as

12 computed for each of the 4 preceding complete calendar quarters

13 is less than $10,000. However, if a taxpayer can show the

14 Department that a substantial change in the taxpayer's business

15 has occurred which causes the taxpayer to anticipate that his

16 average monthly tax liability for the reasonably foreseeable

17 future will fall below the $10,000 threshold stated above, then

18 such taxpayer may petition the Department for a change in the

19 taxpayer's reporting status. The Department shall change the

20 taxpayer's reporting status unless it finds that the change is

21 seasonal in nature and not likely to be long term. If any such

22 quarter-monthly payment is not paid at the time or in the

23 amount required by this Section, then the taxpayer shall be

24 liable for penalties and interest on the difference between the

25 minimum amount due as a payment and the amount of such

26 quarter-monthly payment actually and timely paid, except

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1 insofar as the taxpayer has previously made payments for that

2 month to the Department in excess of the minimum payments

3 previously due as provided in this Section. The Department

4 shall adopt rules to govern the quarter-monthly payment amount

5 and quarter-monthly payment dates for taxpayers who file on

6 other than a calendar monthly basis.

7 If any payment provided for in this Section exceeds the

8 taxpayer's liabilities under this Act, as shown on an original

9 monthly return, the Department shall, if requested by the

10 taxpayer, issue to the taxpayer a credit memorandum no later

11 than 30 days after the date of payment. The credit evidenced by

12 such credit memorandum may be assigned by the taxpayer to a

13 similar taxpayer under this Act, in accordance with reasonable

14 rules and regulations to be prescribed by the Department. If no

15 such request is made, the taxpayer may credit such excess

16 payment against tax liability subsequently to be remitted to

17 the Department under this Act, in accordance with reasonable

18 rules and regulations prescribed by the Department. If the

19 Department subsequently determines that all or any part of the

20 credit taken was not actually due to the taxpayer, the

21 taxpayer's 1.75% discount shall be reduced by 1.75% of the

22 difference between the credit taken and that actually due, and

23 that taxpayer shall be liable for penalties and interest on

24 such difference.

25 (c) A provider who has a tax liability in the amount set

26 forth in subsection (b) of Section 2505-210 of the Department

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1 of Revenue Law of the Civil Administrative Code of Illinois

2 shall make all payments required by rules of the Department by

3 electronic funds transfer. Any provider not required to make

4 payments by electronic funds transfer may make payments by

5 electronic funds transfer with the permission of the

6 Department. All providers required to make payments by

7 electronic funds transfer and any providers authorized to

8 voluntarily make payments by electronic funds transfer shall

9 make those payments in the manner authorized by the Department.

10 (d) If a provider fails to sign a return within 30 days

11 after the proper notice and demand for signature by the

12 Department is received by the provider, the return shall be

13 considered valid and any amount shown to be due on the return

14 shall be deemed assessed.

15 Section 15-55. Claims; credit memorandum or refunds. If it

16 appears, after claim therefore filed with the Department, that

17 an amount of tax or penalty has been paid to the Department by

18 the taxpayer which was not due under this Act, whether as the

19 result of a mistake of fact or an error of law, except as

20 hereinafter provided, then the Department shall issue a credit

21 memorandum or refund to the person who made the erroneous

22 payment or, if that person has died or become a person under

23 legal disability, to his or her legal representative, as such.

24 If it is determined that the Department should issue a

25 credit or refund under this Act, the Department may first apply

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1 the amount thereof against any amount of tax or penalty due

2 under this Act, or any other Act administered by the

3 Department, from the person entitled to such credit or refund.

4 For this purpose, if proceedings are pending to determine

5 whether or not any tax or penalty is due under this Act, or any

6 other Act administered by the Department, from such person, the

7 Department may withhold issuance of the credit or refund

8 pending the final disposition of such proceedings and may apply

9 such credit or refund against any amount found to be due to the

10 Department under this Act, or any other Act administered by the

11 Department, as a result of such proceedings. The balance, if

12 any, of the credit or refund shall be issued to the person

13 entitled thereto.

14 If no tax or penalty is due and no proceeding is pending to

15 determine whether such taxpayer is indebted to the Department

16 for tax or penalty, the credit memorandum or refund shall be

17 issued to the claimant; or (in the case of a credit memorandum)

18 the credit memorandum may be assigned and set over by the

19 lawful holder thereof, subject to reasonable rules of the

20 Department, to any other person who is subject to this Act, and

21 the amount thereof shall be applied by the Department against

22 any tax or penalty due or to become due under this Act from

23 such assignee.

24 As to any claim filed hereunder with the Department on and

25 after each January 1 and July 1, no amount of tax or penalty

26 erroneously paid (either in total or partial liquidation of a

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1 tax or penalty under this Act) more than 3 years prior to such

2 January 1 and July 1, respectively, shall be credited or

3 refunded, except that if both the Department and the taxpayer

4 have agreed to an extension of time to issue a notice of tax

5 liability under this Act, the claim may be filed at any time

6 prior to the expiration of the period agreed upon. No claim may

7 be allowed for any amount paid to the Department, whether paid

8 voluntarily or involuntarily, if paid in total or partial

9 liquidation of an assessment which had become final before the

10 claim for credit or refund to recover the amount so paid is

11 filed with the Department, or if paid in total or partial

12 liquidation of a judgment or order of court.

13 No claim may be allowed or refund made for any amount paid

14 by or collected from any purchaser unless it appears that the

15 claimant has unconditionally repaid to the purchaser any amount

16 collected from the purchaser and retained by the claimant with

17 respect to the same transaction under the Act.

18 Any credit or refund that is allowed under this Act shall

19 bear interest at the rate and in the manner set forth in the

20 Uniform Penalty and Interest Act.

21 In case the Department determines that the claimant is

22 entitled to a refund, such refund shall be made only from such

23 appropriation as may be available for that purpose. If it

24 appears unlikely that the amount appropriated would permit

25 everyone having a claim allowed during the period covered by

26 such appropriation to elect to receive a cash refund, the

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1 Department, by rule or regulation, shall provide for the

2 payment of refunds in hardship cases and shall define what

3 types of cases qualify as hardship cases.

4 Section 15-60. Sunset of exemptions, credits, and

5 deductions. The application of every exemption, credit, and

6 deduction against tax imposed by this Act that becomes law

7 after the effective date of this Act shall be limited by a

8 reasonable and appropriate sunset date. A taxpayer is not

9 entitled to take the exemption, credit, or deduction beginning

10 on the sunset date and thereafter. If a reasonable and

11 appropriate sunset date is not specified in the Public Act that

12 creates the exemption, credit, or deduction, a taxpayer shall

13 not be entitled to take the exemption, credit, or deduction

14 beginning 5 years after the effective date of the Public Act

15 creating the exemption, credit, or deduction and thereafter.

16 Section 15-65. Distribution of proceeds. All moneys

17 received by the Department under this Act shall be paid into

18 the General Revenue Fund in the State Treasury.

19 Section 15-70. Rulemaking. The Department may adopt rules

20 in accordance with the Illinois Administrative Procedure Act

21 and prescribe forms relating to the administration and

22 enforcement of this Act as it deems appropriate.

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1 Section 15-75. Incorporation by reference. All of the

2 provisions of Sections 2a, 2b, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,

3 5g, 5i, 5j, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of

4 the Retailers' Occupation Tax Act and all of the provisions of

5 the Uniform Penalty and Interest Act, that are not inconsistent

6 with this Act, apply to providers to the same extent as if

7 those provisions were included in this Act. References in the

8 incorporated Sections of the Retailers' Occupation Tax Act to

9 retailers, to sellers, or to persons engaged in the business of

10 selling tangible personal property mean providers when used in

11 this Act. References in the incorporated Sections to sales of

12 tangible personal property mean sales of services subject to

13 tax under this Act when used in this Act.

14 ARTICLE 20. LANDSCAPING EXCISE TAX ACT

15 Section 20-1. Short title. This Act may be cited as the

16 Landscaping Excise Tax Act.

17 Section 20-5. Definitions.

18 "Cost price" means the consideration paid by a provider to

19 a supplier for a purchase of tangible personal property valued

20 in money, whether paid in money or otherwise, including cash,

21 credits and services, and shall be determined without any

22 deduction on account of taxes paid by the provider for the

23 purchase of tangible personal property or on account of any

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1 expenses that are part of the selling price of the tangible

2 personal property taxable under the Retailers' Occupation Tax

3 Act and the Use Tax Act that are charged to the provider by a

4 supplier. When a provider contracts out part or all of the

5 services required in his sale of service subject to tax under

6 this Act, it shall be presumed that the cost price to the

7 provider of the tangible personal property transferred to him

8 or her by his or her subcontractor is equal to 50% of the

9 subcontractor's charges to the provider in the absence of proof

10 of the consideration paid for the tangible personal property by

11 the provider to the subcontractor.

12 "Department" means the Department of Revenue.

13 "Director" means the Director of Revenue.

14 "Landscaping services" means services performed by a

15 person who arranges and modifies the natural condition of a

16 given parcel or tract of land so as to render the land suitable

17 for public or private use or enjoyment. Landscaping services

18 include, but are not limited to, mowing, watering, and aerating

19 lawns; weeding; mulching; raking leaves; tree and shrub

20 trimming and removal; planting of trees, shrubs, flowering and

21 non-flowering plants, and sod; spraying; fertilizing; applying

22 chemicals; lawn and garden installation; constructing,

23 remodeling, or repairing irrigation or lawn sprinkler systems,

24 patios (other than asphalt, tar, macadam, or poured concrete),

25 walkways (other than asphalt, tar, macadam, or poured

26 concrete), fences, trellises, and retaining walls; grading

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1 (such as the filling or leveling of topsoil for lawns and

2 gardens), and snow plowing and removal.

3 "Person" means any natural individual, firm, trust,

4 estate, partnership, association, joint stock company, joint

5 venture, corporation, limited liability company, or a

6 receiver, trustee, guardian, or other representative appointed

7 by order of any court.

8 "Provider" means any person engaged in the business of

9 providing landscaping services.

10 "Provider maintaining a place of business in this State",

11 or any like term, means any of the following:

12 (1) A provider having or maintaining within this State,

13 directly or by a subsidiary, an office, distribution house,

14 sales house, warehouse, or other place of business, or any

15 agent or other representative operating within this State

16 under the authority of the provider or its subsidiary,

17 irrespective of whether such place of business or agent or

18 other representative is located here permanently or

19 temporarily, or whether such provider or subsidiary is

20 licensed to do business in this State.

21 (2) A provider having a contract with a person located

22 in this State under which the person, for a commission or

23 other consideration based upon the sale of services subject

24 to tax under this Act by the provider, directly or

25 indirectly refers potential customers to the provider by

26 providing to the potential customers a promotional code or

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1 other mechanism that allows the provider to track purchases

2 referred by such persons. Examples of mechanisms that allow

3 the provider to track purchases referred by such persons

4 include, but are not limited to, the use of a link on the

5 person's Internet website, promotional codes distributed

6 through the person's hand-delivered or mailed material,

7 and promotional codes distributed by the person through

8 radio or other broadcast media. The provisions of this

9 paragraph (2) shall apply only if the cumulative purchase

10 prices from sales of services subject to tax under this Act

11 by the provider to purchasers who are referred to the

12 provider by all persons in this State under such contracts

13 exceed $10,000 during the preceding 4 quarterly periods

14 ending on the last day of March, June, September, and

15 December. A provider meeting the requirements of this

16 paragraph (2) shall be presumed to be maintaining a place

17 of business in this State but may rebut this presumption by

18 submitting proof that the referrals or other activities

19 pursued within this State by such persons were not

20 sufficient to meet the nexus standards of the United States

21 Constitution during the preceding 4 quarterly periods.

22 (3) A provider having a contract with a person located

23 in this State under which:

24 (A) the provider sells the same or substantially

25 similar service subject to tax under this Act as the

26 person located in this State and does so using an

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1 identical or substantially similar name, trade name,

2 or trademark as the person located in this State; and

3 (B) the provider provides a commission or other

4 consideration to the person located in this State based

5 upon the sale of services subject to tax under this Act

6 by the provider.

7 The provisions of this paragraph (3) shall apply only if

8 the cumulative purchase prices from sales of services subject

9 to tax under this Act by the provider to purchasers in this

10 State under all such contracts exceed $10,000 during the

11 preceding 4 quarterly periods ending on the last day of March,

12 June, September, and December.

13 "Purchase of service" means the acquisition of landscaping

14 services for a valuable consideration.

15 "Purchase price" means the consideration paid for a

16 purchase of service, all services directly related to the

17 purchase of service, and all tangible personal property

18 transferred incident to the purchase of service, valued in

19 money, whether received in money or otherwise, including cash,

20 gift cards, reward points, credits, and property and shall be

21 determined without any deduction on account of the cost of

22 materials used, labor or service costs, or any other expense

23 whatsoever. "Purchase price" shall not include consideration

24 paid for:

25 (1) any charge for a dishonored check;

26 (2) any finance or credit charge, penalty or charge

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1 for delayed payment, or discount for prompt payment;

2 (3) any purchase by a purchaser if the provider is

3 prohibited by federal or State constitution, treaty,

4 convention, statute, or court decision from collecting the

5 tax from such purchaser;

6 (4) the isolated or occasional sale of services

7 subject to tax under this Act by a person who does not hold

8 himself out as being engaged (or who does not habitually

9 engage) in selling such service; and

10 (5) any amounts added to a purchaser's bills

11 because of charges made pursuant to the tax imposed by this

12 Act.

13 In case credit is extended, the amount thereof shall be

14 included only as and when payments are made.

15 "Purchaser" means any person who acquires landscaping

16 services for a valuable consideration.

17 "Supplier" means any person who makes sales of tangible

18 personal property to providers for subsequent transfer

19 incident to a sale of service subject to tax under this Act.

20 "Use" means the exercise by any person of any right or

21 power over, or the enjoyment of, the services subject to tax

22 under this Act.

23 Section 20-10. Imposition of tax; calculation of tax.

24 (a) Effective January 1, 2018, except as otherwise provided

25 in this Section, a tax is imposed upon the purchase, for use

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1 and not for resale, of landscaping services at the rate of 5%

2 of the purchase price.

3 (b) Except as otherwise provided in subsection (e), if

4 tangible personal property is transferred incident to a

5 purchase of service, and if the provider separately states on

6 the invoice the cost price of the tangible personal property

7 transferred incident to the purchase of service, the tax is

8 imposed on the difference between the total purchase price and

9 the provider's cost price of the tangible personal property

10 transferred.

11 (c) Except as otherwise provided in subsection (e), if

12 tangible personal property is transferred incident to a

13 purchase of service, and if the provider does not separately

14 state on the invoice the cost price of the tangible personal

15 property transferred incident to the purchase of service, tax

16 is imposed on 80% of the purchase price.

17 (d) Except as otherwise provided in subsection (e), a

18 provider that transfers tangible personal property incident to

19 sales of service subject to tax under this Act shall make an

20 annual election prior to December 31 of each year to pay the

21 tax imposed by this Act under either subsection (b) or

22 subsection (c) for the following calendar year. A provider may

23 not make an election regarding the method of calculating tax on

24 a transaction-by-transaction basis. For a provider that fails

25 to make an election under this subsection (d), the tax is

26 imposed on 80% of the purchase price.

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1 (e) A provider making sales of services subject to tax

2 under this Act in which the aggregate annual cost price of

3 tangible personal property transferred incident to all sales of

4 services subject to tax under this Act is less than 3% of the

5 aggregate annual total purchase prices from all sales of

6 services subject to tax under this Act, may annually elect to

7 calculate tax on 100% of the total purchase price for each

8 purchase of service. A provider that does not elect to

9 calculate tax under this subsection (e) must separately state

10 on the invoice the cost price of the tangible personal property

11 transferred incident to a purchase of service and calculate tax

12 under subsection (b).

13 A provider making an election to calculate tax under this

14 subsection (e) may provide resale certificates under Section 2c

15 of the Retailers' Occupation Tax Act to his or her suppliers of

16 tangible personal property that will be transferred incident to

17 sales of services subject to tax under this Act only if the

18 provider also makes sales of that tangible personal property at

19 retail. A provider that provides resale certificates to his or

20 her supplier must pay Retailers' Occupation Tax on the portion

21 of the tangible personal property that is sold at retail.

22 Providers who do not also make sales of that tangible

23 personal property at retail may not provide suppliers with

24 certificates of resale, and their purchases of tangible

25 personal property are subject to tax under the Use Tax Act.

26 (f) If any provider erroneously collects tax or collects

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1 more from the purchaser than the purchaser's liability for the

2 transaction, the purchaser shall have a legal right to claim a

3 refund of such amount from such provider. However, if such

4 amount is not refunded to the purchaser for any reason, the

5 provider is liable to pay such amount to the Department.

6 (g) The tax imposed by this Section is not imposed with

7 respect to any transaction in interstate commerce, to the

8 extent such transaction may not, under the Constitution and

9 statutes of the United States, be made the subject of taxation

10 by this State.

11 Section 20-15. Transactions involving subcontractors. If a

12 provider subcontracts a service subject to tax under this Act

13 in which tangible personal property is transferred, the

14 provider does not incur a use tax liability on the cost price

15 of any tangible personal property transferred to the provider

16 by the subcontractor if the subcontractor (i) has paid or will

17 pay use tax on his or her cost price of any tangible personal

18 property transferred to the provider and (ii) certifies that

19 fact in writing to the provider.

20 Section 20-20. Multi-state exemption. To prevent actual

21 multi-state taxation of services that are subject to taxation

22 under this Act, any purchaser or provider, upon proof that the

23 purchaser or provider has paid a tax in another state on such

24 service, shall be allowed a credit against the tax imposed by

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1 this Act, to the extent of the amount of the tax properly due

2 and paid in the other state.

3 Section 20-25. Exemptions.

4 (a) The following purchasers are exempt from the tax

5 imposed by this Act:

6 (1) Corporations, societies, associations,

7 foundations, or institutions organized and operated

8 exclusively for charitable, religious, or educational

9 purposes that have been issued an active tax exemption

10 number by the Department under Section 1g of the Retailers'

11 Occupation Tax Act. This paragraph is exempt from the

12 provisions of Section 20-60 of this Act.

13 (2) The federal government and its instrumentalities

14 that have been issued an active tax exemption number by the

15 Department under Section 1g of the Retailers' Occupation

16 Tax Act. This paragraph is exempt from the provisions of

17 Section 20-60 of this Act.

18 (3) Government bodies that have been issued an active

19 tax exemption number by the Department under Section 1g of

20 the Retailers' Occupation Tax Act. This paragraph is exempt

21 from the provisions of Section 20-60 of this Act.

22 (b) The purchase of the following services is exempt from

23 the tax imposed by this Act:

24 (1) Repair and maintenance services, to the extent that

25 those services are subject to a separate tax imposed by the

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1 State. This paragraph is exempt from the provisions of

2 Section 20-60 of this Act.

3 (2) Services performed on tangible personal property

4 exempt under the Retailers' Occupation Tax Act, Use Tax

5 Act, Service Occupation Tax Act, or Service Use Tax Act.

6 This paragraph is exempt from the provisions of Section

7 20-60 of this Act.

8 (3) Landscaping services that qualify as production

9 agriculture as defined in Section 2-35 of the Retailers'

10 Occupation Tax Act. This paragraph is exempt from the

11 provisions of Section 20-60 of this Act.

12 Section 20-30. Collection of tax.

13 (a) Beginning with bills issued or charges collected for a

14 purchase of service on and after January 1, 2018, the tax

15 imposed by this Act shall be collected from the purchaser by

16 any provider maintaining a place of business in this State at

17 the rate under Section 20-10 of this Act with respect to the

18 service subject to tax under this Act sold by such provider to

19 or for the purchaser, and shall be remitted to the Department

20 as provided in Section 20-50 of this Act. All sales of services

21 subject to tax under this Act to a purchaser for use and not

22 for resale are presumed subject to tax collection. Providers

23 shall collect the tax from purchasers by adding the tax to the

24 amount of the purchase price received from the purchaser for

25 selling a service subject to tax under this Act to or for the

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1 purchaser. The tax imposed by the Act shall, when collected, be

2 stated as a distinct item separate and apart from the purchase

3 price of the service subject to tax under this Act. Where it is

4 not possible to state the tax separately, the Department may by

5 rule exempt such purchases from this requirement if purchasers

6 are notified by language on the invoice or other written

7 notification or notified by a sign that the tax is included in

8 the purchase price.

9 (b) Any person purchasing a service subject to tax under

10 this Act for use and not for resale as to which there has been

11 no charge made to him of the tax imposed by Section 20-10 shall

12 make payment of the tax imposed by Section 20-10 of this Act in

13 the form and manner provided by the Department not later than

14 the 20th day of the month following the month of purchase of

15 the service.

16 Section 20-35. Registration of providers.

17 (a) A person who engages in business as a provider in this

18 State shall register with the Department. Application for a

19 certificate of registration shall be made to the Department, by

20 electronic means, in the form and manner prescribed by the

21 Department and shall contain any reasonable information the

22 Department may require. Upon receipt of the application for a

23 certificate of registration in proper form and manner, the

24 Department shall issue to the applicant a certificate of

25 registration.

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1 The annual fee payable to the Department for each

2 certificate of registration shall be $75. The fee shall be

3 deposited into the Tax Compliance and Administration Fund. Each

4 applicant for a certificate of registration shall pay the fee

5 to the Department at the time of submitting the application.

6 The Department shall require an applicant for a certificate of

7 registration under this Section to electronically pay the fee.

8 A separate annual fee shall be paid for each place of business

9 at which a person who is required to procure a certificate of

10 registration under this Section proposes to sell a service in

11 this State subject to tax under this Act.

12 (b) The Department may refuse to issue or reissue a

13 certificate of registration to any applicant for the reasons

14 set forth in Section 2505-380 of the Department of Revenue Law

15 of the Civil Administrative Code of Illinois.

16 (c) Any person aggrieved by any decision of the Department

17 under this Section may, within 20 days after notice of such

18 decision, protest and request a hearing, whereupon the

19 Department shall give notice to such person of the time and

20 place fixed for such hearing and shall hold a hearing in

21 conformity with the provisions of this Act and then issue its

22 final administrative decision in the matter to such person. In

23 the absence of such a protest within 20 days, the Department's

24 decision shall become final without any further determination

25 being made or notice given.

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1 Section 20-40. Revocation of certificate of registration.

2 (a) The Department may, after notice and a hearing as

3 provided in Section 20-30, revoke the certificate of

4 registration of any person who violates any of the provisions

5 of this Act or regulation promulgated pursuant to this Act.

6 Before revocation of a certificate of registration, the

7 Department shall, within 90 days after non-compliance and at

8 least 7 days prior to the date of the hearing, give the person

9 so accused notice in writing of the charge against him or her,

10 and on the date designated shall conduct a hearing upon this

11 matter. The lapse of the 90 day period shall not preclude the

12 Department from conducting revocation proceedings at a later

13 date if necessary. Any hearing held under this Section shall be

14 conducted by the Director or by any officer or employee of the

15 Department designated in writing by the Director.

16 (b) The Department may revoke a certificate of registration

17 for the reasons set forth in Section 2505-380 of the Department

18 of Revenue Law of the Civil Administrative Code of Illinois.

19 (c) Upon the hearing of any such proceeding, the Director

20 or any officer or employee of the Department designated in

21 writing by the Director may administer oaths, and the

22 Department may procure by its subpoena the attendance of

23 witnesses and, by its subpoena duces tecum, the production of

24 relevant books and papers. Any circuit court, upon application

25 either of the accused or of the Department, may, by order duly

26 entered, require the attendance of witnesses and the production

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1 of relevant books and papers before the Department in any

2 hearing relating to the revocation of certificates of

3 registration. Upon refusal or neglect to obey the order of the

4 court, the court may compel obedience thereof by proceedings

5 for contempt.

6 (d) The Department may, by application to any circuit

7 court, obtain an injunction requiring any person who engages in

8 business as a provider under this Act to obtain a certificate

9 of registration. Upon refusal or neglect to obey the order of

10 the court, the court may compel obedience by proceedings for

11 contempt.

12 Section 20-45. Tax collected as debt owed to State. The tax

13 required to be collected under this Act by any provider

14 maintaining a place of business in this State, and any such tax

15 collected by that person, shall constitute a debt owed by that

16 person to this State.

17 Section 20-50. Return and payment of tax by provider.

18 (a) Each provider who is required or authorized to collect

19 the tax imposed by this Act shall make a return to the

20 Department on or before the 20th day of each month for the

21 preceding calendar month stating the following:

22 (1) the provider's name;

23 (2) the address of the provider's principal place of

24 business and the address of the principal place of business

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1 (if that is a different address) from which the provider

2 engaged in the business of selling a service subject to tax

3 under this Act;

4 (3) total purchase price received by the provider for

5 all services subject to tax under this Act;

6 (4) amount of tax, computed upon item (3) at the rate

7 stated in Section 20-10;

8 (5) the signature of the provider; and

9 (6) such other information as the Department

10 reasonably may require.

11 Any amount which is required to be shown or reported on any

12 return or other document under this Act shall, if such amount

13 is not a whole-dollar amount, be increased to the nearest

14 whole-dollar amount if the fractional part of a dollar is $0.50

15 or more and decreased to the nearest whole-dollar amount if the

16 fractional part of the dollar is less than $0.50. If a total

17 amount of less than $1 is payable, refundable, or creditable,

18 such amount shall be disregarded if it is less than $0.50 and

19 shall be increased to $1 if it is $0.50 or more.

20 The provider making the return provided for in this Section

21 shall, at the time of making such return, pay to the Department

22 the amount of tax imposed by this Act, less a discount of 1.75%

23 which is allowed to reimburse the provider for the expenses

24 incurred in keeping records, billing the purchaser, preparing

25 and filing returns, remitting the tax, and supplying data to

26 the Department upon request. No discount may be claimed by a

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1 provider on returns not timely filed and for taxes not timely

2 remitted.

3 (b) If the average monthly tax liability to the Department

4 of the provider does not exceed $200, the Department may

5 authorize the provider's returns to be filed on a

6 quarter-annual basis, with the return for January, February,

7 and March of a given year being due by April 20 of such year;

8 with the return for April, May, and June of a given year being

9 due by July 20 of such year; with the return for July, August,

10 and September of a given year being due by October 20 of such

11 year; and with the return for October, November, and December

12 of a given year being due by January 20 of the following year.

13 If the average monthly tax liability to the Department of

14 the provider does not exceed $50, the Department may authorize

15 the provider's returns to be filed on an annual basis, with the

16 return for a given year being due by January 20 of the

17 following year.

18 The quarter-annual and annual returns, as to form and

19 substance, shall be subject to the same requirements as monthly

20 returns.

21 Notwithstanding any other provision in this Act concerning

22 the time within which a provider may file a return, any such

23 provider who ceases to engage in a kind of business which makes

24 the person responsible for filing returns under this Act shall

25 file a final return under this Act with the Department not more

26 than one month after discontinuing such business.

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1 Each provider whose average monthly liability to the

2 Department under this Act was $10,000 or more during the

3 preceding calendar year, excluding the month of highest

4 liability and the month of lowest liability in such calendar

5 year, shall make estimated payments to the Department on or

6 before the 7th, 15th, 22nd, and last day of the month during

7 which tax liability to the Department is incurred in an amount

8 not less than the lower of either 22.5% of such provider's

9 actual tax liability for the month or 25% of such provider's

10 actual tax liability for the same calendar month of the

11 preceding year. The amount of the quarter-monthly payments

12 shall be credited against the final tax liability of the

13 provider's return for that month. Once applicable, the

14 requirement of the making of quarter-monthly payments to the

15 Department by taxpayers having an average monthly tax liability

16 of $10,000 or more as determined in a manner provided in this

17 paragraph shall continue until such taxpayer's average monthly

18 liability to the Department during the preceding 4 complete

19 calendar quarters (excluding the month of highest liability and

20 the month of lowest liability) is less than $9,000 or until

21 such taxpayer's average monthly liability to the Department as

22 computed for each of the 4 preceding complete calendar quarters

23 is less than $10,000. However, if a taxpayer can show the

24 Department that a substantial change in the taxpayer's business

25 has occurred which causes the taxpayer to anticipate that his

26 average monthly tax liability for the reasonably foreseeable

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1 future will fall below the $10,000 threshold stated above, then

2 such taxpayer may petition the Department for a change in such

3 taxpayer's reporting status unless it finds that such change is

4 seasonal in nature and not likely to be long term. If any such

5 quarter-monthly payment is not paid at the time or in the

6 amount required by this Section, then the taxpayer shall be

7 liable for penalties and interest on the difference between the

8 minimum amount due as a payment and the amount of such

9 quarter-monthly payment actually and timely paid, except

10 insofar as the taxpayer has previously made payments for that

11 month to the Department in excess of the minimum payments

12 previously due as provided in this Section. The Department

13 shall adopt rules to govern the quarter-monthly payment amount

14 and quarter-monthly payment dates for taxpayers who file on

15 other than a calendar monthly basis.

16 If any payment provided for in this Section exceeds the

17 taxpayer's liabilities under this Act, as shown on an original

18 monthly return, the Department shall, if requested by the

19 taxpayer, issue to the taxpayer a credit memorandum no later

20 than 30 days after the date of payment. The credit evidenced by

21 such credit memorandum may be assigned by the taxpayer to a

22 similar taxpayer under this Act, in accordance with reasonable

23 rules and regulations to be prescribed by the Department. If no

24 such request is made, the taxpayer may credit such excess

25 payment against tax liability subsequently to be remitted to

26 the Department under this Act, in accordance with reasonable

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1 rules and regulations prescribed by the Department. If the

2 Department subsequently determines that all or any part of the

3 credit taken was not actually due to the taxpayer, the

4 taxpayer's 1.75% discount shall be reduced by 1.75% of the

5 difference between the credit taken and that actually due, and

6 that taxpayer shall be liable for penalties and interest on

7 such difference.

8 (c) A provider who has a tax liability in the amount set

9 forth in subsection (b) of Section 2505-210 of the Department

10 of Revenue Law of the Civil Administrative Code of Illinois

11 shall make all payments required by rules of the Department by

12 electronic funds transfer. Any provider not required to make

13 payments by electronic funds transfer may make payments by

14 electronic funds transfer with the permission of the

15 Department. All providers required to make payments by

16 electronic funds transfer and any providers authorized to

17 voluntarily make payments by electronic funds transfer shall

18 make those payments in the manner authorized by the Department.

19 (d) If a provider fails to sign a return within 30 days

20 after the proper notice and demand for signature by the

21 Department is received by the provider, the return shall be

22 considered valid and any amount shown to be due on the return

23 shall be deemed assessed.

24 Section 20-55. Claims; credit memorandum or refunds.

25 If it appears, after claim therefore filed with the

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1 Department, that an amount of tax or penalty has been paid to

2 the Department by the taxpayer which was not due under this

3 Act, whether as the result of a mistake of fact or an error of

4 law, except as hereinafter provided, then the Department shall

5 issue a credit memorandum or refund to the person who made the

6 erroneous payment or, if that person has died or become a

7 person under legal disability, to his or her legal

8 representative, as such.

9 If it is determined that the Department should issue a

10 credit or refund under this Act, the Department may first apply

11 the amount thereof against any amount of tax or penalty due

12 under this Act, or any other Act administered by the

13 Department, from the person entitled to such credit or refund.

14 For this purpose, if proceedings are pending to determine

15 whether or not any tax or penalty is due under this Act, or any

16 other Act administered by the Department, from such person, the

17 Department may withhold issuance of the credit or refund

18 pending the final disposition of such proceedings and may apply

19 such credit or refund against any amount found to be due to the

20 Department under this Act, or any other Act administered by the

21 Department, as a result of such proceedings. The balance, if

22 any, of the credit or refund shall be issued to the person

23 entitled thereto.

24 If no tax or penalty is due and no proceeding is pending to

25 determine whether such taxpayer is indebted to the Department

26 for tax or penalty, the credit memorandum or refund shall be

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1 issued to the claimant; or (in the case of a credit memorandum)

2 the credit memorandum may be assigned and set over by the

3 lawful holder thereof, subject to reasonable rules of the

4 Department, to any other person who is subject to this Act, and

5 the amount thereof shall be applied by the Department against

6 any tax or penalty due or to become due under this Act from

7 such assignee.

8 As to any claim filed hereunder with the Department on and

9 after each January 1 and July 1, no amount of tax or penalty

10 erroneously paid (either in total or partial liquidation of a

11 tax or penalty under this Act) more than 3 years prior to such

12 January 1 and July 1, respectively, shall be credited or

13 refunded, except that if both the Department and the taxpayer

14 have agreed to an extension of time to issue a notice of tax

15 liability under this Act, the claim may be filed at any time

16 prior to the expiration of the period agreed upon.

17 No claim may be allowed for any amount paid to the

18 Department, whether paid voluntarily or involuntarily, if paid

19 in total or partial liquidation of an assessment which had

20 become final before the claim for credit or refund to recover

21 the amount so paid is filed with the Department, or if paid in

22 total or partial liquidation of a judgment or order of court.

23 No claim may be allowed or refund made for any amount paid by

24 or collected from any purchaser unless it appears that the

25 claimant has unconditionally repaid to the purchaser any amount

26 collected from the purchaser and retained by the claimant with

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1 respect to the same transaction under the Act.

2 Any credit or refund that is allowed under this Act shall

3 bear interest at the rate and in the manner set forth in the

4 Uniform Penalty and Interest Act.

5 In case the Department determines that the claimant is

6 entitled to a refund, such refund shall be made only from such

7 appropriation as may be available for that purpose. If it

8 appears unlikely that the amount appropriated would permit

9 everyone having a claim allowed during the period covered by

10 such appropriation to elect to receive a cash refund, the

11 Department, by rule or regulation, shall provide for the

12 payment of refunds in hardship cases and shall define what

13 types of cases qualify as hardship cases.

14 Section 20-60. Sunset of exemptions, credits, and

15 deductions.

16 The application of every exemption, credit, and deduction

17 against tax imposed by this Act that becomes law after the

18 effective date of this Act shall be limited by a reasonable and

19 appropriate sunset date. A taxpayer is not entitled to take the

20 exemption, credit, or deduction beginning on the sunset date

21 and thereafter. If a reasonable and appropriate sunset date is

22 not specified in the Public Act that creates the exemption,

23 credit, or deduction, a taxpayer shall not be entitled to take

24 the exemption, credit, or deduction beginning 5 years after the

25 effective date of the Public Act creating the exemption,

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1 credit, or deduction and thereafter.

2 Section 20-65. Distribution of proceeds. All moneys

3 received by the Department under this Act shall be paid into

4 the General Revenue Fund in the State Treasury.

5 Section 20-70. Department's authority to adopt rules. The

6 Department is authorized to adopt and enforce reasonable rules

7 under the Illinois Administrative Procedure Act, and to

8 prescribe forms relating to the administration and enforcement

9 of this Act, as it may deem appropriate.

10 Section 20-75. Incorporation by reference. All of the

11 provisions of Sections 2a, 2b, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,

12 5g, 5i, 5j, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of

13 the Retailers' Occupation Tax Act and all of the provisions of

14 the Uniform Penalty and Interest Act, that are not inconsistent

15 with this Act, apply to providers to the same extent as if

16 those provisions were included in this Act. References in the

17 incorporated Sections of the Retailers' Occupation Tax Act to

18 retailers, to sellers, or to persons engaged in the business of

19 selling tangible personal property mean providers when used in

20 this Act. References in the incorporated Sections to sales of

21 tangible personal property mean sales of services subject to

22 tax under this Act when used in this Act.

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1 Section 20-80. Sourcing. The purchase of landscaping

2 services shall be sourced to the location of the parcel or

3 tract of land where the benefit of the landscaping services is

4 realized.

5 ARTICLE 25. LAUNDRY AND DRYCLEANING EXCISE TAX ACT

6 Section 25-1. Short title. This Act may be cited as the

7 Laundry and Drycleaning Excise Tax Act.

8 Section 25-5. Definitions.

9 "Cost price" means the consideration paid by a provider to

10 a supplier for a purchase of tangible personal property valued

11 in money, whether paid in money or otherwise, including cash,

12 credits and services, and shall be determined without any

13 deduction on account of taxes paid by the provider for the

14 purchase of tangible personal property or on account of any

15 expenses that are part of the selling price of the tangible

16 personal property taxable under the Retailers' Occupation Tax

17 Act and the Use Tax Act that are charged to the provider by a

18 supplier. When a provider contracts out part or all of the

19 services required in his sale of service subject to tax under

20 this Act, it shall be presumed that the cost price to the

21 provider of the tangible personal property transferred to him

22 or her by his or her subcontractor is equal to 50% of the

23 subcontractor's charges to the provider in the absence of proof

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1 of the consideration paid for the tangible personal property by

2 the provider to the subcontractor.

3 "Department" means the Department of Revenue.

4 "Director" means the Director of Revenue.

5 "Person" means any natural individual, firm, trust,

6 estate, partnership, association, joint stock company, joint

7 venture, corporation, limited liability company, or a

8 receiver, trustee, guardian, or other representative appointed

9 by order of any court.

10 "Provider" means any person engaged in the business of

11 providing, furnishing, selling, or supplying laundry,

12 drycleaning, cloth pressing, dyeing, or linen service.

13 "Provider maintaining a place of business in this State",

14 or any like term, means and includes any of the following:

15 (1) A provider having or maintaining within this State,

16 directly or by a subsidiary, an office, distribution house,

17 sales house, warehouse or other place of business, or any

18 agent or other representative operating within this State

19 under the authority of the provider or its subsidiary,

20 irrespective of whether such place of business or agent or

21 other representative is located here permanently or

22 temporarily, or whether such provider or subsidiary is

23 licensed to do business in this State.

24 (2) A provider having a contract with a person located

25 in this State under which the person, for a commission or

26 other consideration based upon the sale of services subject

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1 to tax under this Act by the provider, directly or

2 indirectly refers potential customers to the provider by

3 providing to the potential customers a promotional code or

4 other mechanism that allows the provider to track purchases

5 referred by such persons. Examples of mechanisms that allow

6 the provider to track purchases referred by such persons

7 include but are not limited to the use of a link on the

8 person's Internet website, promotional codes distributed

9 through the person's hand-delivered or mailed material,

10 and promotional codes distributed by the person through

11 radio or other broadcast media. The provisions of this

12 paragraph (2) shall apply only if the cumulative purchase

13 prices from sales of services subject to tax under this Act

14 by the provider to purchasers who are referred to the

15 provider by all persons in this State under such contracts

16 exceed $10,000 during the preceding 4 quarterly periods

17 ending on the last day of March, June, September, and

18 December. A provider meeting the requirements of this

19 paragraph (2) shall be presumed to be maintaining a place

20 of business in this State but may rebut this presumption by

21 submitting proof that the referrals or other activities

22 pursued within this State by such persons were not

23 sufficient to meet the nexus standards of the United States

24 Constitution during the preceding 4 quarterly periods.

25 (3) A provider having a contract with a person located

26 in this State under which:

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1 (A) the provider sells the same or substantially

2 similar service subject to tax under this Act as the

3 person located in this State and does so using an

4 identical or substantially similar name, trade name,

5 or trademark as the person located in this State; and

6 (B) the provider provides a commission or other

7 consideration to the person located in this State based

8 upon the sale of services subject to tax under this Act

9 by the provider.

10 The provisions of this paragraph (3) shall apply only

11 if the cumulative purchase prices from sales of services

12 subject to tax under this Act by the provider to purchasers

13 in this State under all such contracts exceed $10,000

14 during the preceding 4 quarterly periods ending on the last

15 day of March, June, September, and December.

16 "Purchase of service" means the acquisition of laundry,

17 drycleaning, cloth pressing, dyeing, or linen service for a

18 valuable consideration.

19 "Purchase price" means the consideration paid for a

20 purchase of service, all services directly related to the

21 purchase of service, and all tangible personal property

22 transferred incident to the purchase of service, valued in

23 money, whether received in money or otherwise, including cash,

24 gift cards, reward points, credits, and property and shall be

25 determined without any deduction on account of the cost of

26 materials used, labor or service costs, or any other expense

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1 whatsoever. However, "purchase price" shall not include

2 consideration paid for:

3 (1) any charge for a dishonored check;

4 (2) any finance or credit charge, penalty or charge for

5 delayed payment, or discount for prompt payment;

6 (3) any purchase by a purchaser if the provider is

7 prohibited by federal or State constitution, treaty,

8 convention, statute or court decision from collecting the

9 tax from such purchaser;

10 (4) the isolated or occasional sale of services subject

11 to tax under this Act by a person who does not hold himself

12 out as being engaged (or who does not habitually engage) in

13 selling such service; and

14 (5) any amounts added to a purchaser's bills because of

15 charges made pursuant to the tax imposed by this Act.

16 In case credit is extended, the amount thereof shall be

17 included only as and when payments are made.

18 "Purchaser" means any person who, for a valuable

19 consideration, acquires laundry, drycleaning, cloth pressing,

20 dyeing, or linen service.

21 "Supplier" means any person who makes sales of tangible

22 personal property to providers for subsequent transfer

23 incident to a sale of service subject to tax under this Act.

24 "Use" means the exercise by any person of any right or

25 power over, or the enjoyment of, the services subject to tax

26 under this Act.

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1 Section 25-10. Imposition of tax; calculation of tax.

2 (a) Effective January 1, 2018, except as otherwise provided

3 in this Section, a tax is imposed upon the purchase, for use

4 and not for resale, of laundry, drycleaning, cloth pressing,

5 dyeing, or linen service at the rate of 5% of the purchase

6 price.

7 (b) Except as otherwise provided in subsection (e), if

8 tangible personal property is transferred incident to a

9 purchase of service, and if the provider separately states on

10 the invoice the cost price of the tangible personal property

11 transferred incident to the purchase of service, the tax is

12 imposed on the difference between the total purchase price and

13 the provider's cost price of the tangible personal property

14 transferred.

15 (c) Except as otherwise provided in subsection (e), if

16 tangible personal property is transferred incident to a

17 purchase of service, and if the provider does not separately

18 state on the invoice the cost price of the tangible personal

19 property transferred incident to the purchase of service, tax

20 is imposed on 80% of the purchase price.

21 (d) Except as otherwise provided in subsection (e), a

22 provider that transfers tangible personal property incident to

23 sales of service subject to tax under this Act shall make an

24 annual election prior to December 31 of each year to pay the

25 tax imposed by this Act under either subsection (b) or

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1 subsection (c) for the following calendar year. A provider may

2 not make an election regarding the method of calculating tax on

3 a transaction-by-transaction basis. For a provider that fails

4 to make an election pursuant to this subsection, the tax is

5 imposed on 80% of the purchase price.

6 (e) A provider making sales of services subject to tax

7 under this Act in which the aggregate annual cost price of

8 tangible personal property transferred incident to all sales of

9 services subject to tax under this Act is less than 3% of the

10 aggregate annual total purchase prices from all sales of

11 services subject to tax under this Act, may annually elect to

12 calculate tax on 100% of the total purchase price for each

13 purchase of service. A provider that does not elect to

14 calculate tax as provided in this subsection must separately

15 state on the invoice the cost price of the tangible personal

16 property transferred incident to a purchase of service and

17 calculate tax pursuant to subsection (b).

18 A provider making an election to calculate tax under this

19 subsection may provide resale certificates under Section 2c of

20 the Retailers' Occupation Tax Act to his or her suppliers of

21 tangible personal property that will be transferred incident to

22 sales of services subject to tax under this Act only if the

23 provider also makes sales of that tangible personal property at

24 retail. A provider that provides resale certificates to his or

25 her supplier must pay Retailers' Occupation Tax on the portion

26 of the tangible personal property that is sold at retail.

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1 Providers who do not also make sales of that tangible

2 personal property at retail may not provide suppliers with

3 certificates of resale, and their purchases of tangible

4 personal property are subject to tax under the Use Tax Act.

5 (f) If any provider erroneously collects tax or collects

6 more from the purchaser than the purchaser's liability for the

7 transaction, the purchaser shall have a legal right to claim a

8 refund of such amount from such provider. However, if such

9 amount is not refunded to the purchaser for any reason, the

10 provider is liable to pay such amount to the Department.

11 (g) The tax imposed by this Section 25-10 is not imposed

12 with respect to any transaction in interstate commerce, to the

13 extent such transaction may not, under the Constitution and

14 statutes of the United States, be made the subject of taxation

15 by this State.

16 Section 25-15. Transactions involving subcontractors. If a

17 provider subcontracts a service subject to tax under this Act

18 in which tangible personal property is transferred, the

19 provider does not incur a use tax liability on the cost price

20 of any tangible personal property transferred to the provider

21 by the subcontractor if the subcontractor (i) has paid or will

22 pay a use tax on his or her cost price of any tangible personal

23 property transferred to the provider and (ii) certifies that

24 fact in writing to the provider.

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1 Section 25-20. Multi-state exemption. To prevent actual

2 multi-state taxation of services that are subject to taxation

3 under this Act, any purchaser or provider, upon proof that the

4 purchaser or provider has paid a tax in another state on such

5 service, shall be allowed a credit against the tax imposed by

6 this Act, to the extent of the amount of the tax properly due

7 and paid in the other state.

8 Section 25-25. Exemptions.

9 (a) The following purchasers are exempt from the tax

10 imposed by this Act:

11 (1) Corporations, societies, associations,

12 foundations, or institutions organized and operated

13 exclusively for charitable, religious or educational

14 purposes that have been issued an active tax exemption

15 number by the Department under Section 1g of the Retailers'

16 Occupation Tax Act. This paragraph is exempt from the

17 provisions of Section 25-60.

18 (2) The federal government and its instrumentalities

19 that have been issued an active tax exemption number by the

20 Department under Section 1g of the Retailers' Occupation

21 Tax Act. This paragraph is exempt from the provisions of

22 Section 25-60.

23 (3) Government bodies that have been issued an active

24 tax exemption number by the Department under Section 1g of

25 the Retailers' Occupation Tax Act. This paragraph is exempt

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1 from the provisions of Section 25-60.

2 (b) The purchase of the following services is exempt from

3 the tax imposed by this Act:

4 (1) Repair and maintenance services, to the extent that

5 those services are subject to a separate tax imposed by the

6 State. This paragraph is exempt from the provisions of

7 Section 25-60.

8 (2) Services performed on tangible personal property

9 exempt under the Retailers' Occupation Tax Act, Use Tax

10 Act, Service Occupation Tax Act, or Service Use Tax Act.

11 This paragraph is exempt from the provisions of Section

12 25-60.

13 Section 25-30. Collection of tax.

14 (a) Beginning with bills issued or charges collected for a

15 purchase of service on and after January 1, 2018, the tax

16 imposed by this Act shall be collected from the purchaser by

17 any provider maintaining a place of business in this State at

18 the rate stated in Section 25-10 with respect to the service

19 subject to tax under this Act sold by such provider to or for

20 the purchaser, and shall be remitted to the Department as

21 provided in Section 25-50 of this Act. All sales of services

22 subject to tax under this Act to a purchaser for use and not

23 for resale are presumed subject to tax collection. Providers

24 shall collect the tax from purchasers by adding the tax to the

25 amount of the purchase price received from the purchaser for

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1 selling a service subject to tax under this Act to or for the

2 purchaser. The tax imposed by the Act shall when collected be

3 stated as a distinct item separate and apart from the purchase

4 price of the service subject to tax under this Act. However,

5 where it is not possible to state the tax separately, the

6 Department may by rule exempt such purchases from this

7 requirement if purchasers are notified by language on the

8 invoice or other written notification or notified by a sign

9 that the tax is included in the purchase price.

10 (b) Any person purchasing a service subject to tax under

11 this Act for use and not for resale as to which there has been

12 no charge made to him of the tax imposed by Section 25-10 shall

13 make payment of the tax imposed by Section 25-10 of this Act in

14 the form and manner provided by the Department not later than

15 the 20th day of the month following the month of purchase of

16 the service.

17 Section 25-35. Registration of providers.

18 (a) A person who engages in business as a provider in this

19 State shall register with the Department. Application for a

20 certificate of registration shall be made to the Department, by

21 electronic means, in the form and manner prescribed by the

22 Department, and shall contain any reasonable information the

23 Department may require. Upon receipt of the application for a

24 certificate of registration in proper form and manner, the

25 Department shall issue to the applicant a certificate of

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1 registration.

2 The annual fee payable to the Department for each

3 certificate of registration shall be $75. The fee shall be

4 deposited into the Tax Compliance and Administration Fund. Each

5 applicant for a certificate of registration shall pay the fee

6 to the Department at the time of submitting its application for

7 certificate registration to the Department. The Department

8 shall require an applicant for a certificate of registration

9 under this Section to electronically pay the fee. A separate

10 annual fee shall be paid for each place of business at which a

11 person who is required to procure a certificate of registration

12 under this Section proposes to sell a service in Illinois

13 subject to tax under this Act.

14 (b) The Department may refuse to issue or reissue a

15 certificate of registration to any applicant for the reasons

16 set forth in Section 2505-380 of the Department of Revenue Law

17 of the Civil Administrative Code of Illinois.

18 (c) Any person aggrieved by any decision of the Department

19 under this Section may, within 20 days after notice of such

20 decision, protest and request a hearing, whereupon the

21 Department shall give notice to such person of the time and

22 place fixed for such hearing and shall hold a hearing in

23 conformity with the provisions of this Act and then issue its

24 final administrative decision in the matter to such person. In

25 the absence of such a protest within 20 days, the Department's

26 decision shall become final without any further determination

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1 being made or notice given.

2 Section 25-40. Revocation of certificate of registration.

3 (a) The Department may, after notice and a hearing as

4 provided herein, revoke the certificate of registration of any

5 person who violates any of the provisions of this Act or

6 regulation promulgated pursuant to this Act. Before revocation

7 of a certificate of registration, the Department shall, within

8 90 days after non-compliance and at least 7 days prior to the

9 date of the hearing, give the person so accused notice in

10 writing of the charge against him or her, and on the date

11 designated shall conduct a hearing upon this matter. The lapse

12 of such 90-day period shall not preclude the Department from

13 conducting revocation proceedings at a later date if necessary.

14 Any hearing held under this Section shall be conducted by the

15 Director or by any officer or employee of the Department

16 designated in writing by the Director.

17 (b) The Department may revoke a certificate of registration

18 for the reasons set forth in Section 2505-380 of the Department

19 of Revenue Law of the Civil Administrative Code of Illinois.

20 (c) Upon the hearing of any such proceeding, the Director

21 or any officer or employee of the Department designated in

22 writing by the Director may administer oaths, and the

23 Department may procure by its subpoena the attendance of

24 witnesses and, by its subpoena duces tecum, the production of

25 relevant books and papers. Any circuit court, upon application

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1 either of the accused or of the Department, may, by order duly

2 entered, require the attendance of witnesses and the production

3 of relevant books and papers before the Department in any

4 hearing relating to the revocation of certificates of

5 registration. Upon refusal or neglect to obey the order of the

6 court, the court may compel obedience thereof by proceedings

7 for contempt.

8 (d) The Department may, by application to any circuit

9 court, obtain an injunction requiring any person who engages in

10 business as a provider under this Act to obtain a certificate

11 of registration. Upon refusal or neglect to obey the order of

12 the court, the court may compel obedience by proceedings for

13 contempt.

14 Section 25-45. Tax collected as debt owed to State. The tax

15 herein required to be collected by any provider maintaining a

16 place of business in this State, and any such tax collected by

17 that person, shall constitute a debt owed by that person to

18 this State.

19 Section 25-50. Return and payment of tax by provider.

20 (a) Each provider who is required or authorized to collect

21 the tax imposed by this Act shall make a return to the

22 Department on or before the 20th day of each month for the

23 preceding calendar month stating the following:

24 (1) the provider's name;

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1 (2) the address of the provider's principal place of

2 business and the address of the principal place of business

3 (if that is a different address) from which the provider

4 engaged in the business of selling a service subject to tax

5 under this Act;

6 (3) total purchase price received by the provider for

7 all services subject to tax under this Act;

8 (4) amount of tax, computed upon item (3) at the rate

9 stated in Section 25-10;

10 (5) the signature of the provider; and

11 (6) such other information as the Department

12 reasonably may require.

13 Any amount which is required to be shown or reported on any

14 return or other document under this Act shall, if such amount

15 is not a whole-dollar amount, be increased to the nearest

16 whole-dollar amount if the fractional part of a dollar is $0.50

17 or more and decreased to the nearest whole-dollar amount if the

18 fractional part of a dollar is less than $0.50. If a total

19 amount of less than $1 is payable, refundable, or creditable,

20 that amount shall be disregarded if it is less than $0.50 and

21 shall be increased to $1 if it is $0.50 or more.

22 The provider making the return provided for in this Section

23 shall, at the time of making such return, pay to the Department

24 the amount of tax imposed by this Act, less a discount of 1.75%

25 which is allowed to reimburse the provider for the expenses

26 incurred in keeping records, billing the purchaser, preparing

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1 and filing returns, remitting the tax, and supplying data to

2 the Department upon request. No discount may be claimed by a

3 provider on returns not timely filed and for taxes not timely

4 remitted.

5 (b) If the average monthly tax liability to the Department

6 of the provider does not exceed $200, the Department may

7 authorize the provider's returns to be filed on a

8 quarter-annual basis, with the return for January, February,

9 and March of a given year being due by April 20 of such year;

10 with the return for April, May and June of a given year being

11 due by July 20 of such year; with the return for July, August,

12 and September of a given year being due by October 20 of such

13 year; and with the return for October, November, and December

14 of a given year being due by January 20 of the following year.

15 If the average monthly tax liability to the Department of

16 the provider does not exceed $50, the Department may authorize

17 the provider's returns to be filed on an annual basis, with the

18 return for a given year being due by January 20 of the

19 following year.

20 Such quarter-annual and annual returns, as to form and

21 substance, shall be subject to the same requirements as monthly

22 returns.

23 Notwithstanding any other provision in this Act concerning

24 the time within which a provider may file a return, any such

25 provider who ceases to engage in a kind of business which makes

26 the person responsible for filing returns under this Act shall

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1 file a final return under this Act with the Department not more

2 than one month after discontinuing such business.

3 Each provider whose average monthly liability to the

4 Department under this Act was $10,000 or more during the

5 preceding calendar year, excluding the month of highest

6 liability and the month of lowest liability in such calendar

7 year, shall make estimated payments to the Department on or

8 before the 7th, 15th, 22nd, and last day of the month during

9 which tax liability to the Department is incurred in an amount

10 not less than the lower of either 22.5% of such provider's

11 actual tax liability for the month or 25% of such provider's

12 actual tax liability for the same calendar month of the

13 preceding year. The amount of such quarter-monthly payments

14 shall be credited against the final tax liability of such

15 provider's return for that month. Once applicable, the

16 requirement of the making of quarter-monthly payments to the

17 Department by taxpayers having an average monthly tax liability

18 of $10,000 or more as determined in the manner provided in this

19 paragraph shall continue until the taxpayer's average monthly

20 liability to the Department during the preceding 4 complete

21 calendar quarters (excluding the month of highest liability and

22 the month of lowest liability) is less than $9,000 or until the

23 taxpayer's average monthly liability to the Department as

24 computed for each of the 4 preceding complete calendar quarters

25 is less than $10,000. However, if a taxpayer can show the

26 Department that a substantial change in the taxpayer's business

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1 has occurred that causes the taxpayer to anticipate that his

2 average monthly tax liability for the reasonably foreseeable

3 future will fall below the $10,000 threshold stated above, then

4 the taxpayer may petition the Department for a change in the

5 taxpayer's reporting status. The Department shall change the

6 taxpayer's reporting status unless it finds that the change is

7 seasonal in nature and not likely to be long term. If any such

8 quarter-monthly payment is not paid at the time or in the

9 amount required by this Section, then the taxpayer shall be

10 liable for penalties and interest on the difference between the

11 minimum amount due as a payment and the amount of such

12 quarter-monthly payments actually and timely paid, except

13 insofar as the taxpayer has previously made payments for that

14 month to the Department in excess of the minimum payments

15 previously due as provided in this Section. The Department

16 shall adopt rules to govern the quarter-monthly payment amount

17 and quarter-monthly payment dates for taxpayers who file on

18 other than a calendar monthly basis.

19 If any payment provided for in this Section exceeds the

20 taxpayer's liabilities under this Act, as shown on an original

21 monthly return, the Department shall, if requested by the

22 taxpayer, issue to the taxpayer a credit memorandum no later

23 than 30 days after the date of payment. The credit evidenced by

24 such credit memorandum may be assigned by the taxpayer to a

25 similar taxpayer under this Act, in accordance with reasonable

26 rules and regulations to be prescribed by the Department. If no

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1 such request is made, the taxpayer may credit such excess

2 payment against tax liability subsequently to be remitted to

3 the Department under this Act, in accordance with reasonable

4 rules and regulations prescribed by the Department. If the

5 Department subsequently determines that all or any part of the

6 credit taken was not actually due to the taxpayer, the

7 taxpayer's 1.75% discount shall be reduced by 1.75% of the

8 difference between the credit taken and that actually due, and

9 that taxpayer shall be liable for penalties and interest on

10 such difference.

11 (c) A provider who has a tax liability in the amount set

12 forth in subsection (b) of Section 2505-210 of the Department

13 of Revenue Law of the Civil Administrative Code of Illinois

14 shall make all payments required by rules of the Department by

15 electronic funds transfer. Any provider not required to make

16 payments by electronic funds transfer may make payments by

17 electronic funds transfer with the permission of the

18 Department. All providers required to make payments by

19 electronic funds transfer and any providers authorized to

20 voluntarily make payments by electronic funds transfer shall

21 make those payments in the manner authorized by the Department.

22 (d) If a provider fails to sign a return within 30 days

23 after the proper notice and demand for signature by the

24 Department is received by the provider, the return shall be

25 considered valid and any amount shown to be due on the return

26 shall be deemed assessed.

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1 Section 25-55. Claims; credit memorandum or refunds. If it

2 appears, after claim therefore filed with the Department, that

3 an amount of tax or penalty has been paid to the Department by

4 the taxpayer which was not due under this Act, whether as the

5 result of a mistake of fact or an error of law, except as

6 hereinafter provided, then the Department shall issue a credit

7 memorandum or refund to the person who made the erroneous

8 payment or, if that person has died or become a person under

9 legal disability, to his or her legal representative, as such.

10 If it is determined that the Department should issue a

11 credit or refund under this Act, the Department may first apply

12 the amount thereof against any amount of tax or penalty due

13 under this Act, or any other Act administered by the

14 Department, from the person entitled to such credit or refund.

15 For this purpose, if proceedings are pending to determine

16 whether or not any tax or penalty is due under this Act, or any

17 other Act administered by the Department, from such person, the

18 Department may withhold issuance of the credit or refund

19 pending the final disposition of such proceedings and may apply

20 such credit or refund against any amount found to be due to the

21 Department under this Act, or any other Act administered by the

22 Department, as a result of such proceedings. The balance, if

23 any, of the credit or refund shall be issued to the person

24 entitled thereto.

25 If no tax or penalty is due and no proceeding is pending to

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1 determine whether such taxpayer is indebted to the Department

2 for tax or penalty, the credit memorandum or refund shall be

3 issued to the claimant; or (in the case of a credit memorandum)

4 the credit memorandum may be assigned and set over by the

5 lawful holder thereof, subject to reasonable rules of the

6 Department, to any other person who is subject to this Act, and

7 the amount thereof shall be applied by the Department against

8 any tax or penalty due or to become due under this Act from

9 such assignee.

10 As to any claim filed hereunder with the Department on and

11 after each January 1 and July 1, no amount of tax or penalty

12 erroneously paid (either in total or partial liquidation of a

13 tax or penalty under this Act) more than 3 years prior to such

14 January 1 and July 1, respectively, shall be credited or

15 refunded, except that if both the Department and the taxpayer

16 have agreed to an extension of time to issue a notice of tax

17 liability under this Act, the claim may be filed at any time

18 prior to the expiration of the period agreed upon.

19 No claim may be allowed for any amount paid to the

20 Department, whether paid voluntarily or involuntarily, if paid

21 in total or partial liquidation of an assessment which had

22 become final before the claim for credit or refund to recover

23 the amount so paid is filed with the Department, or if paid in

24 total or partial liquidation of a judgment or order of court.

25 No claim may be allowed or refund made for any amount paid by

26 or collected from any purchaser unless it appears that the

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1 claimant has unconditionally repaid to the purchaser any amount

2 collected from the purchaser and retained by the claimant with

3 respect to the same transaction under the Act.

4 Any credit or refund that is allowed under this Act shall

5 bear interest at the rate and in the manner set forth in the

6 Uniform Penalty and Interest Act.

7 In case the Department determines that the claimant is

8 entitled to a refund, such refund shall be made only from such

9 appropriation as may be available for that purpose. If it

10 appears unlikely that the amount appropriated would permit

11 everyone having a claim allowed during the period covered by

12 such appropriation to elect to receive a cash refund, the

13 Department, by rule or regulation, shall provide for the

14 payment of refunds in hardship cases and shall define what

15 types of cases qualify as hardship cases.

16 Section 25-60. Sunset of exemptions, credits, and

17 deductions. The application of every exemption, credit, and

18 deduction against tax imposed by this Act that becomes law

19 after the effective date of this Act shall be limited by a

20 reasonable and appropriate sunset date. A taxpayer is not

21 entitled to take the exemption, credit, or deduction beginning

22 on the sunset date and thereafter. If a reasonable and

23 appropriate sunset date is not specified in the Public Act that

24 creates the exemption, credit, or deduction, a taxpayer shall

25 not be entitled to take the exemption, credit, or deduction

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1 beginning 5 years after the effective date of the Public Act

2 creating the exemption, credit, or deduction and thereafter.

3 Section 25-65. Distribution of proceeds. All moneys

4 received by the Department under this Act shall be paid into

5 the General Revenue Fund in the State Treasury.

6 Section 25-70. Rulemaking. The Department may adopt rules

7 in accordance with the Illinois Administrative Procedure Act

8 and prescribe such forms relating to the administration and

9 enforcement of this Act as it deems appropriate.

10 Section 25-75. Incorporation by reference. All of the