HB2577 EngrossedLRB101 06994 RPS 52027 b



1 AN ACT concerning liquor.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Liquor Control Act of 1934 is amended by 
5changing Section 8-2 as follows:




6 (235 ILCS 5/8-2) (from Ch. 43, par. 159)



7 Sec. 8-2. Payments; reports. It is the duty of each 
8manufacturer with respect to alcoholic
liquor produced or 
9imported by such manufacturer, or purchased tax-free by
such 
10manufacturer from another manufacturer or importing

11distributor, and of each importing distributor as to alcoholic 
12liquor
purchased by such importing distributor from foreign 
13importers or from
anyone from any point in the United States 
14outside of this State or
purchased tax-free from another 
15manufacturer or importing
distributor, to pay the tax imposed 
16by Section 8-1 to the
Department of Revenue on or before the 
1715th day of the calendar month
following the calendar month in 
18which such alcoholic liquor is sold or used
by such 
19manufacturer or by such importing distributor other than in an

20authorized tax-free manner or to pay that tax electronically as 
21provided in
this Section.

22 Each manufacturer and each importing distributor shall

23make payment under one of the following methods: (1) on or 
 
 
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1before the
15th day of each calendar month, file in person or 
2by United States
first-class
mail, postage pre-paid,
with the 
3Department of Revenue, on
forms prescribed and furnished by the 
4Department, a report in writing in
such form as may be required 
5by the Department in order to compute, and
assure the accuracy 
6of, the tax due on all taxable sales and uses of
alcoholic 
7liquor occurring during the preceding month. Payment of the tax

8in the amount disclosed by the report shall accompany the 
9report or, (2) on
or
before the 15th day of each calendar 
10month, electronically file with the
Department of Revenue, on 
11forms prescribed and furnished by the Department, an
electronic 
12report in such form as may be required by the Department in 
13order to
compute,
and assure the accuracy of, the tax due on 
14all taxable sales and uses of
alcoholic liquor
occurring during 
15the preceding month. An electronic payment of the tax in the

16amount
disclosed by the report shall accompany the report. A 
17manufacturer or
distributor who
files an electronic report and 
18electronically pays the tax imposed pursuant to
Section 8-1
to 
19the Department of Revenue on or before the 15th day of the 
20calendar month
following
the calendar month in which such 
21alcoholic liquor is sold or used by that
manufacturer or

22importing distributor other than in an authorized tax-free 
23manner shall pay to
the
Department the amount of the tax 
24imposed pursuant to Section 8-1, less a
discount
which is 
25allowed to reimburse the manufacturer or importing distributor

26for the
expenses incurred in keeping and maintaining records, 
 
 
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1preparing and filing the
electronic
returns, remitting the tax, 
2and supplying data to the Department upon
request.

3 The discount shall be in an amount as follows:


4  (1) For original returns due on or after January 1, 
5 2003 through
September 30, 2003, the discount shall be 
6 1.75% or $1,250 per return, whichever
is less;


7  (2) For original returns due on or after October 1, 
8 2003 through September
30, 2004, the discount shall be 2% 
9 or $3,000 per return, whichever is less; and


10  (3) For original returns due on or after October 1, 
11 2004, the discount
shall
be 2% or $2,000 per return, 
12 whichever is less.

13 The Department may, if it deems it necessary in order to 
14insure the
payment of the tax imposed by this Article, require 
15returns to be made
more frequently than and covering periods of 
16less than a month. Such return
shall contain such further 
17information as the Department may reasonably
require.

18 It shall be presumed that all alcoholic liquors acquired or 
19made by any
importing distributor or manufacturer have been 
20sold or used by him in this
State and are the basis for the tax 
21imposed by this Article unless proven,
to the satisfaction of 
22the Department, that such alcoholic liquors are (1)
still in 
23the possession of such importing distributor or manufacturer, 
24or
(2) prior to the termination of possession have been lost by 
25theft or
through unintentional destruction, or (3) that such 
26alcoholic liquors are
otherwise exempt from taxation under this 
 
 
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1Act.

2 If any payment provided for in this Section exceeds the 
3manufacturer's or importing distributor's liabilities under 
4this Act, as shown on an original report, the manufacturer or 
5importing distributor may credit such excess payment against 
6liability subsequently to be remitted to the Department under 
7this Act, in accordance with reasonable rules adopted by the 
8Department. If the Department subsequently determines that all 
9or any part of the credit taken was not actually due to the 
10manufacturer or importing distributor, the manufacturer's or 
11importing distributor's discount shall be reduced by an amount 
12equal to the difference between the discount as applied to the 
13credit taken and that actually due, and the manufacturer or 
14importing distributor shall be liable for penalties and 
15interest on such difference. 
16 The Department may require any foreign importer to file 
17monthly
information returns, by the 15th day of the month 
18following the month which
any such return covers, if the 
19Department determines this to be necessary
to the proper 
20performance of the Department's functions and duties under
this 
21Act. Such return shall contain such information as the 
22Department may
reasonably require.

23 Every manufacturer and importing distributor, except for a 
24manufacturer or importing distributor that in the preceding 
25year had less than $50,000 of tax liability under this Article, 
26shall also file, with the
Department, a bond in an amount not 
 
 
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1less than $1,000 and not to exceed
$100,000 on a form to be 
2approved by, and with a surety or sureties
satisfactory to, the 
3Department. Such bond shall be conditioned upon the

4manufacturer or importing distributor paying to the Department 
5all monies
becoming due from such manufacturer or importing 
6distributor under this
Article. The Department shall fix the 
7penalty of such bond in each case,
taking into consideration 
8the amount of alcoholic liquor expected to be
sold and used by 
9such manufacturer or importing distributor, and the
penalty 
10fixed by the Department shall be sufficient, in the 
11Department's
opinion, to protect the State of Illinois against 
12failure to pay any amount
due under this Article, but the 
13amount of the penalty fixed by the
Department shall not exceed 
14twice the amount of tax liability of a monthly
return, nor 
15shall the amount of such penalty be less than $1,000. The

16Department shall notify the Commission of the Department's 
17approval or
disapproval of any such manufacturer's or importing 
18distributor's bond, or
of the termination or cancellation of 
19any such bond, or of the Department's
direction to a 
20manufacturer or importing distributor that he must file

21additional bond in order to comply with this Section. The 
22Commission shall
not issue a license to any applicant for a 
23manufacturer's or importing
distributor's license unless the 
24Commission has received a notification
from the Department 
25showing that such applicant has filed a satisfactory
bond with 
26the Department hereunder and that such bond has been approved 
 
 
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1by
the Department. Failure by any licensed manufacturer or 
2importing
distributor to keep a satisfactory bond in effect 
3with the Department or to
furnish additional bond to the 
4Department, when required hereunder by the
Department to do so, 
5shall be grounds for the revocation or suspension of
such 
6manufacturer's or importing distributor's license by the 
7Commission.
If a manufacturer or importing distributor fails to 
8pay any amount due
under this Article, his bond with the 
9Department shall be deemed forfeited,
and the Department may 
10institute a suit in its own name on such bond.

11 After notice and opportunity for a hearing the State 
12Commission may
revoke or suspend the license of any 
13manufacturer or importing distributor
who fails to comply with 
14the provisions of this Section. Notice of such
hearing and the 
15time and place thereof shall be in writing and shall
contain a 
16statement of the charges against the licensee. Such notice may 
17be
given by United States registered or certified mail with 
18return receipt
requested, addressed to the person concerned at 
19his last known address and
shall be given not less than 7 days 
20prior to the date fixed for the
hearing. An order revoking or 
21suspending a license under the provisions of
this Section may 
22be reviewed in the manner provided in Section 7-10
of this Act. 
23No new license shall be granted to a person
whose license has 
24been revoked for a violation of this Section or, in case
of 
25suspension, shall such suspension be terminated until he has 
26paid to the
Department all taxes and penalties which he owes 
 
 
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1the State under the
provisions of this Act.

2 Every manufacturer or importing distributor who has, as 
3verified by
the Department, continuously complied with the 
4conditions of the bond under
this Act for a period of 2 years 
5shall be considered to be a prior
continuous compliance 
6taxpayer. In determining the consecutive period of
time for 
7qualification as a prior continuous compliance taxpayer, any

8consecutive period of time of qualifying compliance 
9immediately prior to
the effective date of this amendatory Act 
10of 1987 shall be credited to any
manufacturer or importing 
11distributor.

12 A manufacturer or importing distributor that is a prior 
13continuous compliance taxpayer under this Section and becomes a 
14successor as the result of an acquisition, merger, or 
15consolidation of a manufacturer or importing distributor shall 
16be deemed to be a prior continuous compliance taxpayer with 
17respect to the acquired, merged, or consolidated entity.

18 Every prior continuous compliance taxpayer shall be exempt 
19from the bond
requirements of this Act until the Department has 
20determined the taxpayer
to be delinquent in the filing of any 
21return or deficient in the payment of
any tax under this Act. 
22Any taxpayer who fails to pay an admitted or
established 
23liability under this Act may also be required to post bond or

24other acceptable security with the Department guaranteeing the 
25payment of
such admitted or established liability.

26 The Department shall discharge any surety and shall release 
 
 
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1and return
any bond or security deposit assigned, pledged or 
2otherwise provided to it
by a taxpayer under this Section 
3within 30 days after: (1) such taxpayer
becomes a prior 
4continuous compliance taxpayer; or (2) such taxpayer has
ceased 
5to collect receipts on which he is required to remit tax to the

6Department, has filed a final tax return, and has paid to the 
7Department an
amount sufficient to discharge his remaining tax 
8liability as determined by
the Department under this Act.

9(Source: P.A. 100-1171, eff. 1-4-19.)



10 Section 99. Effective date. This Act takes effect January 
111, 2020.