SB 459 — INC TX/USE TX-FORM-TAX AMNESTY

SB0459 EngrossedEnrolled LRB096 06500 RCE 16584 b AN ACT concerning revenue.

"SectionSection 5.

Beginning with taxable years ending on or after December 31, 2010, theindividual Departmentpurchasers shallwith printan onannual itsuse standard individual income tax formliability a provision indicating that ifdoes thenot taxpayerexceed wishes$600 tomay, payin hislieu orof herthe usefiling taxand liability,payment herequirements orof sheSection may10 checkof a box on the returnUse soTax indicatingAct, file and attachpay ain completedcompliance usewith taxthis returnSection. and use tax payment.

TheBeginning individualwith incometaxable taxyears returnending instructionson shallor includeafter informationDecember explaining31, 2010, the taxesDepartment imposedshall underprint theon Useits Taxstandard Actindividual andincome informingtax taxpayersform howa toprovision fileindicating andthat payif theirthe taxpayer's annual individual use tax obligations,liability includingdoes specificnot informationexceed on$600, howhe toor fileshe may report and pay individual use tax liability at the same time as thehis or her individual income tax returnliability. is filed.

If the taxpayer elects to report and pay his or her individual use tax liability at the same time as his or her standard individual income tax liability in accordance with this Section, then the use tax shown due on the return may be (i) treated as being due at the same time as the income tax obligation, (ii) assessed, collected, and deposited in the same manner as income taxes, SB0459 Enrolled - 2 - LRB096 06500 RCE 16584 b and (iii) treated as an income tax liability for all purposes.

The individual income tax return instructions shall include information explaining the tax imposed under the Use Tax Act and informing taxpayers how to report and pay their use tax obligations, including specific information on how to report and pay individual use tax at the same time as the individual income tax return is filed.

SB0459 Engrossed - 2 - LRB096 06500 RCE 16584 b (35 ILCS 105/10) (from Ch.

Except as to motor vehicles, aircraft, watercraft, and trailers, and except as to cigarettes as defined in the Cigarette Use Tax Act, when tangible personal property is purchased from a retailer for use in this State by a purchaser who did not pay the tax imposed by this Act to the retailer, and who does not file returns with the Department as a retailer under Section 9 of this Act, such purchaser (by the last day of the month following the calendar month in which such purchaser makes any payment upon the selling price of such property) shall, except as otherwise provided in this Section, file a return with the Department and pay the tax upon that portion of the selling price so paid by the purchaser during the preceding calendar month.

When tangible personal property, including but SB0459 Enrolled - 3 - LRB096 06500 RCE 16584 b not limited to motor vehicles and aircraft, is purchased by a lessor, under a lease for one year or longer, executed or in effect at the time of purchase to an interstate carrier for hire, who did not pay the tax imposed by this Act to the retailer, such lessor (by the last day of the month following the calendar month in which such property reverts to the use of such lessor) shall file a return with the Department and pay the tax upon the fair market value of such property on the date of such reversion.

SB0459 Engrossed - 3 - LRB096 06500 RCE 16584 b Such return shall be filed on a form prescribed by the Department and shall contain such information as the Department may reasonably require.

BeginningIndividual purchasers with taxablean yearsannual endinguse ontax orliability afterthat Decemberdoes 31,not 2010,SB0459 theEnrolled Department- shall4 print- onLRB096 its06500 standardRCE individual16584 incomeb taxexceed form$600 amay, provisionin indicatinglieu thatof if the taxpayerfiling wishesand topayment payrequirements hisin orthis herSection, usefile taxand liability,pay hein orcompliance shewith maySection check502.1 aof box on the returnIllinois soIncome indicatingTax andAct. attach a completed use tax return and use tax payment.

TheIf individualcigarettes, incomeas taxdefined returnin instructionsthe shallCigarette includeUse informationTax explainingAct, are purchased from a retailer for use in this State by a purchaser who did not pay the taxestax imposed underby this Act andto informingthe taxpayersretailer, howand towho does not file andreturns paywith theirthe useDepartment taxas liability,a includingretailer specificunder informationSection on9 howof tothis Act, such purchaser must, within 30 days after acquiring the cigarettes, file a return with the Department and pay usethe tax atupon that portion of the sameselling timeprice asso thepaid individualby incomethe taxpurchaser returnfor isthe filed.cigarettes.

IfIn cigarettes,addition aswith definedrespect into themotor Cigarettevehicles, Useaircraft, Taxwatercraft, Act,and aretrailers, purchaseda frompurchaser aof retailersuch tangible personal property for use in this StateState, bywho apurchases purchasersuch SB0459tangible Engrossedpersonal -property 4from -an LRB096out-of-state 06500retailer, RCEshall 16584file bwith whothe didDepartment, notupon paya theform taxto imposedbe prescribed and supplied by thisthe ActDepartment, toa return for each such item of tangible personal property purchased, except that if, in the retailer,same andtransaction, (i) a purchaser of motor vehicles, aircraft, watercraft, or trailers who doesis nota fileretailer returnsof withmotor vehicles, aircraft, watercraft, or trailers purchases more than one motor vehicle, aircraft, watercraft, or trailer for the Departmentpurpose asof resale or (ii) a retailerpurchaser underof motor vehicles, aircraft, watercraft, or trailers purchases more than one motor vehicle, aircraft, watercraft, or trailer for use as qualifying rolling stock as provided in Section 93-55 of this Act, suchthen purchaserthe must,SB0459 withinEnrolled 30- days5 after- acquiringLRB096 the06500 cigarettes,RCE file16584 ab returnpurchaser withmay report the Departmentpurchase andof payall themotor taxvehicles, uponaircraft, watercraft, or trailers involved in that portiontransaction ofto the sellingDepartment priceon soa paidsingle byreturn theprescribed purchaserby for the cigarettes.Department.

InSuch addition with respect to motor vehicles, aircraft, watercraft, and trailers, a purchaser of such tangible personal property for use in this State, who purchases such tangible personal property from an out-of-state retailer, shall file with the Department, upon a form to be prescribed and supplied by the Department, a return for each such item of tangible personal property purchased, except that if, in the samecase transaction, (i) a purchaser of motor vehicles,vehicles aircraft,and watercraft,aircraft ormust trailersshow whothe isname aand retaileraddress of motorthe vehicles,seller, aircraft, watercraft, or trailers purchases more than one motor vehicle, aircraft, watercraft, or trailer for the purposename, ofaddress resale or (ii) a purchaser of motorpurchaser, vehicles,the aircraft,amount watercraft, or trailers purchases more than one motor vehicle, aircraft, watercraft, or trailer for use as qualifying rolling stock as provided in Section 3-55 of this Act, then the purchaserselling mayprice reportincluding the purchaseamount ofallowed allby motorthe vehicles,retailer aircraft,for watercraft,traded or trailers involved in thatproperty, transactionif toany; the Department on a single return prescribed by the Department.

Such return in the case of motor vehicles and aircraft must show the name and address of the seller, the SB0459 Engrossed - 5 - LRB096 06500 RCE 16584 b name, address of purchaser, the amount of the selling price including the amount allowed by the retailer for traded in property, if any;

SB0459 Enrolled - 6 - LRB096 06500 RCE 16584 b The return and tax remittance or proof of exemption from the tax that is imposed by this Act may be transmitted to the Department by way of the State agency with which, or State officer with whom, the tangible personal property must be titled or registered (if titling or registration is required) SB0459 Engrossed - 6 - LRB096 06500 RCE 16584 b if the Department and such agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

SB0459 Enrolled - 7 - LRB096 06500 RCE 16584 b A user who is liable to pay use tax directly to the Department only occasionally and not on a frequently recurring basis, and who is not required to file returns with the Department as a retailer under Section 9 of this Act, or under the "Retailers' Occupation Tax Act", or as a registrant with SB0459 Engrossed - 7 - LRB096 06500 RCE 16584 b the Department under the "Service Occupation Tax Act" or the "Service Use Tax Act", need not register with the Department.

UseIndividual use tax amnesty.

The Department shall establish an amnesty program for all individual taxpayers owing any tax imposed under this Act for their purchases of tangible SB0459 Enrolled - 8 - LRB096 06500 RCE 16584 b personal property from a retailer for use in this State (eligible taxes).

The amnesty program shall provide that, upon payment by aan individual taxpayer of all eligible taxes due from that taxpayer under this Act for any taxable period SB0459 Engrossed - 8 - LRB096 06500 RCE 16584 b ending after June 30, 2004 and prior to January 1, 2011, the Department shall abate and not seek to collect any interest or penalties that may be applicable and the Department shall not seek civil or criminal prosecution for any taxpayer for these taxes for the period of time for which amnesty has been granted to the taxpayer.

Amnesty shall not be granted to business taxpayers.

VoluntaryAmnesty paymentsshall madenot be granted to any taxpayer who is under thisaudit Sectionfor shalleligible betaxes madeor who is contacted in writing by cash,the check,Department guaranteedconcerning remittance,eligible ortaxes ACHprior debit.to the taxpayer reporting and paying the eligible taxes.

Voluntary payments made under this Section shall be made by SB0459 Enrolled - 9 - LRB096 06500 RCE 16584 b cash, check, guaranteed remittance, or ACH debit.

This Act takes effect upon becoming law.".law.