Bill Text: IL HB3831 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois State Collection Act of 1986. Provides that, in the case of any liability referred to a collection agency, any fee charged to the State by the collection agency is considered an additional liability owed to the State. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois and the Illinois Income Tax Act to authorize the Department of Revenue to adopt rules and regulations for payments by credit card. Amends the Illinois Income Tax Act. Provides that certain lottery and gambling winnings are allocable to the State. Makes other changes. Amends the Retailers' Occupation Tax Act. Makes changes concerning actions by the Department to recover unpaid taxes, penalties, and interest. Amends the Illinois Vehicle Code. Authorizes the Secretary of State to disclose or otherwise make available to the Department of Revenue social security numbers for use by the Department in the administration of any tax administered by the Department of Revenue or in the collection of any tax or debt that the Department of Revenue is authorized or required by law to collect. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB3831 Detail]

Download: Illinois-2009-HB3831-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB3831 Introduced 2/25/2009, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
20 ILCS 2505/2505-255 new
30 ILCS 210/9 new
35 ILCS 5/303 from Ch. 120, par. 3-303
35 ILCS 5/304 from Ch. 120, par. 3-304
35 ILCS 5/605 from Ch. 120, par. 6-605
35 ILCS 5/701 from Ch. 120, par. 7-701
35 ILCS 5/710 from Ch. 120, par. 7-710
35 ILCS 120/5 from Ch. 120, par. 444
35 ILCS 120/5f from Ch. 120, par. 444f
625 ILCS 5/2-123 from Ch. 95 1/2, par. 2-123
Amends the Illinois State Collection Act of 1986. Provides that, in the case of any liability referred to a collection agency, any fee charged to the State by the collection agency is considered an additional liability owed to the State. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois and the Illinois Income Tax Act to authorize the Department of Revenue to adopt rules and regulations for payments by credit card. Amends the Illinois Income Tax Act. Provides that certain lottery and gambling winnings are allocable to the State. Makes other changes. Amends the Retailers' Occupation Tax Act. Makes changes concerning actions by the Department to recover unpaid taxes, penalties, and interest. Amends the Illinois Vehicle Code. Authorizes the Secretary of State to disclose or otherwise make available to the Department of Revenue social security numbers for use by the Department in the administration of any tax administered by the Department of Revenue or in the collection of any tax or debt that the Department of Revenue is authorized or required by law to collect. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-255 as follows:
(20 ILCS 2505/2505-255 new)
Sec. 2505-255. Payment by credit card. The Department may
adopt rules and regulations for payment by credit card of any
amount due under any Act administered by the Department
provided that, prior to December 31, 2009, the Department may
accept payment by credit card only when the Department is not
required to pay a discount fee charged by the credit card
issuer.
Section 10. The Illinois State Collection Act of 1986 is
amended by adding Section 9 as follows:
(30 ILCS 210/9 new)
Sec. 9. Collection agency fees. Except where prohibited by
federal law or regulation, in the case of any liability
referred to a collection agency on or after July 1, 2009, any
fee charged to the State by the collection agency is considered

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an additional liability owed to the State, is immediately
subject to all collection procedures applicable to the
liability referred to the collection agency, and must be
separately stated in any statement or notice of the liability
issued by the collection agency to the taxpayer.
Section 15. The Illinois Income Tax Act is amended by
changing Sections 303, 304, 605, 701, and 710 as follows:
(35 ILCS 5/303) (from Ch. 120, par. 3-303)
Sec. 303. (a) In general. Any item of capital gain or loss,
and any item of income from rents or royalties from real or
tangible personal property, interest, dividends, and patent or
copyright royalties, and prizes awarded under the Illinois
Lottery Law, and, for taxable years ending on or after December
31, 2009, wagering and gambling winnings from Illinois sources
as set forth in subsection (e), to the extent such item
constitutes nonbusiness income, together with any item of
deduction directly allocable thereto, shall be allocated by any
person other than a resident as provided in this Section.
(b) Capital gains and losses. (1) Real property. Capital
gains and losses from sales or exchanges of real property are
allocable to this State if the property is located in this
State.
(2) Tangible personal property. Capital gains and losses
from sales or exchanges of tangible personal property are

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allocable to this State if, at the time of such sale or
exchange:
(A) The property had its situs in this State; or
(B) The taxpayer had its commercial domicile in this State
and was not taxable in the state in which the property had its
situs.
(3) Intangibles. Capital gains and losses from sales or
exchanges of intangible personal property are allocable to this
State if the taxpayer had its commercial domicile in this State
at the time of such sale or exchange.
(c) Rents and royalties. (1) Real property. Rents and
royalties from real property are allocable to this State if the
property is located in this State.
(2) Tangible personal property. Rents and royalties from
tangible personal property are allocable to this State:
(A) If and to the extent that the property is utilized in
this State; or
(B) In their entirety if, at the time such rents or
royalties were paid or accrued, the taxpayer had its commercial
domicile in this State and was not organized under the laws of
or taxable with respect to such rents or royalties in the state
in which the property was utilized. The extent of utilization
of tangible personal property in a state is determined by
multiplying the rents or royalties derived from such property
by a fraction, the numerator of which is the number of days of
physical location of the property in the state during the

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rental or royalty period in the taxable year and the
denominator of which is the number of days of physical location
of the property everywhere during all rental or royalty periods
in the taxable year. If the physical location of the property
during the rental or royalty period is unknown or
unascertainable by the taxpayer, tangible personal property is
utilized in the state in which the property was located at the
time the rental or royalty payer obtained possession.
(d) Patent and copyright royalties.
(1) Allocation. Patent and copyright royalties are
allocable to this State:
(A) If and to the extent that the patent or copyright is
utilized by the payer in this State; or
(B) If and to the extent that the patent or copyright is
utilized by the payer in a state in which the taxpayer is not
taxable with respect to such royalties and, at the time such
royalties were paid or accrued, the taxpayer had its commercial
domicile in this State.
(2) Utilization.
(A) A patent is utilized in a state to the extent that it
is employed in production, fabrication, manufacturing or other
processing in the state or to the extent that a patented
product is produced in the state. If the basis of receipts from
patent royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the
patent is utilized in this State if the taxpayer has its

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commercial domicile in this State.
(B) A copyright is utilized in a state to the extent that
printing or other publication originates in the state. If the
basis of receipts from copyright royalties does not permit
allocation to states or if the accounting procedures do not
reflect states of utilization, the copyright is utilized in
this State if the taxpayer has its commercial domicile in this
State.
(e) Illinois lottery; wagering and gambling winnings
prizes. Prizes awarded under the Illinois Lottery Law "Illinois
Lottery Law", approved December 14, 1973, are allocable to this
State. Payments received in taxable years ending on or after
December 31, 2009 from (i) the assignment of a prize under
Section 13.1 of the Illinois Lottery Law, (ii) payments of
winnings from pari-mutuel wagering conducted at a wagering
facility licensed under the Illinois Horse Racing Act of 1975,
and (iii) gambling games conducted on a riverboat licensed
under the Riverboat Gambling Act are allocable to this State.
(f) Taxability in other state. For purposes of allocation
of income pursuant to this Section, a taxpayer is taxable in
another state if:
(1) In that state he is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax; or
(2) That state has jurisdiction to subject the taxpayer to
a net income tax regardless of whether, in fact, the state does

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or does not.
(g) Cross references. (1) For allocation of interest and
dividends by persons other than residents, see Section
301(c)(2).
(2) For allocation of nonbusiness income by residents, see
Section 301(a).
(Source: P.A. 79-743.)
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than residents.
(a) In general. The business income of a person other than
a resident shall be allocated to this State if such person's
business income is derived solely from this State. If a person
other than a resident derives business income from this State
and one or more other states, then, for tax years ending on or
before December 30, 1998, and except as otherwise provided by
this Section, such person's business income shall be
apportioned to this State by multiplying the income by a
fraction, the numerator of which is the sum of the property
factor (if any), the payroll factor (if any) and 200% of the
sales factor (if any), and the denominator of which is 4
reduced by the number of factors other than the sales factor
which have a denominator of zero and by an additional 2 if the
sales factor has a denominator of zero. For tax years ending on
or after December 31, 1998, and except as otherwise provided by
this Section, persons other than residents who derive business

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income from this State and one or more other states shall
compute their apportionment factor by weighting their
property, payroll, and sales factors as provided in subsection
(h) of this Section.
(1) Property factor.
(A) The property factor is a fraction, the numerator of
which is the average value of the person's real and
tangible personal property owned or rented and used in the
trade or business in this State during the taxable year and
the denominator of which is the average value of all the
person's real and tangible personal property owned or
rented and used in the trade or business during the taxable
year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at 8
times the net annual rental rate. Net annual rental rate is
the annual rental rate paid by the person less any annual
rental rate received by the person from sub-rentals.
(C) The average value of property shall be determined
by averaging the values at the beginning and ending of the
taxable year but the Director may require the averaging of
monthly values during the taxable year if reasonably
required to reflect properly the average value of the
person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator of

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which is the total amount paid in this State during the
taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed entirely
within this State;
(ii) The individual's service is performed both
within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or
(iii) Some of the service is performed within this
State and either the base of operations, or if there is
no base of operations, the place from which the service
is directed or controlled is within this State, or the
base of operations or the place from which the service
is directed or controlled is not in any state in which
some part of the service is performed, but the
individual's residence is in this State.
(iv) Compensation paid to nonresident professional
athletes.
(a) General. The Illinois source income of a
nonresident individual who is a member of a
professional athletic team includes the portion of the
individual's total compensation for services performed
as a member of a professional athletic team during the

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taxable year which the number of duty days spent within
this State performing services for the team in any
manner during the taxable year bears to the total
number of duty days spent both within and without this
State during the taxable year.
(b) Travel days. Travel days that do not involve
either a game, practice, team meeting, or other similar
team event are not considered duty days spent in this
State. However, such travel days are considered in the
total duty days spent both within and without this
State.
(c) Definitions. For purposes of this subpart
(iv):
(1) The term "professional athletic team"
includes, but is not limited to, any professional
baseball, basketball, football, soccer, or hockey
team.
(2) The term "member of a professional
athletic team" includes those employees who are
active players, players on the disabled list, and
any other persons required to travel and who travel
with and perform services on behalf of a
professional athletic team on a regular basis.
This includes, but is not limited to, coaches,
managers, and trainers.
(3) Except as provided in items (C) and (D) of

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this subpart (3), the term "duty days" means all
days during the taxable year from the beginning of
the professional athletic team's official
pre-season training period through the last game
in which the team competes or is scheduled to
compete. Duty days shall be counted for the year in
which they occur, including where a team's
official pre-season training period through the
last game in which the team competes or is
scheduled to compete, occurs during more than one
tax year.
(A) Duty days shall also include days on
which a member of a professional athletic team
performs service for a team on a date that does
not fall within the foregoing period (e.g.,
participation in instructional leagues, the
"All Star Game", or promotional "caravans").
Performing a service for a professional
athletic team includes conducting training and
rehabilitation activities, when such
activities are conducted at team facilities.
(B) Also included in duty days are game
days, practice days, days spent at team
meetings, promotional caravans, preseason
training camps, and days served with the team
through all post-season games in which the team

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competes or is scheduled to compete.
(C) Duty days for any person who joins a
team during the period from the beginning of
the professional athletic team's official
pre-season training period through the last
game in which the team competes, or is
scheduled to compete, shall begin on the day
that person joins the team. Conversely, duty
days for any person who leaves a team during
this period shall end on the day that person
leaves the team. Where a person switches teams
during a taxable year, a separate duty-day
calculation shall be made for the period the
person was with each team.
(D) Days for which a member of a
professional athletic team is not compensated
and is not performing services for the team in
any manner, including days when such member of
a professional athletic team has been
suspended without pay and prohibited from
performing any services for the team, shall not
be treated as duty days.
(E) Days for which a member of a
professional athletic team is on the disabled
list and does not conduct rehabilitation
activities at facilities of the team, and is

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not otherwise performing services for the team
in Illinois, shall not be considered duty days
spent in this State. All days on the disabled
list, however, are considered to be included in
total duty days spent both within and without
this State.
(4) The term "total compensation for services
performed as a member of a professional athletic
team" means the total compensation received during
the taxable year for services performed:
(A) from the beginning of the official
pre-season training period through the last
game in which the team competes or is scheduled
to compete during that taxable year; and
(B) during the taxable year on a date which
does not fall within the foregoing period
(e.g., participation in instructional leagues,
the "All Star Game", or promotional caravans).
This compensation shall include, but is not
limited to, salaries, wages, bonuses as described
in this subpart, and any other type of compensation
paid during the taxable year to a member of a
professional athletic team for services performed
in that year. This compensation does not include
strike benefits, severance pay, termination pay,
contract or option year buy-out payments,

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expansion or relocation payments, or any other
payments not related to services performed for the
team.
For purposes of this subparagraph, "bonuses"
included in "total compensation for services
performed as a member of a professional athletic
team" subject to the allocation described in
Section 302(c)(1) are: bonuses earned as a result
of play (i.e., performance bonuses) during the
season, including bonuses paid for championship,
playoff or "bowl" games played by a team, or for
selection to all-star league or other honorary
positions; and bonuses paid for signing a
contract, unless the payment of the signing bonus
is not conditional upon the signee playing any
games for the team or performing any subsequent
services for the team or even making the team, the
signing bonus is payable separately from the
salary and any other compensation, and the signing
bonus is nonrefundable.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator of
which is the total sales of the person in this State during
the taxable year, and the denominator of which is the total
sales of the person everywhere during the taxable year.
(B) Sales of tangible personal property are in this

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State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point or
other conditions of the sale; or
(ii) The property is shipped from an office, store,
warehouse, factory or other place of storage in this
State and either the purchaser is the United States
government or the person is not taxable in the state of
the purchaser; provided, however, that premises owned
or leased by a person who has independently contracted
with the seller for the printing of newspapers,
periodicals or books shall not be deemed to be an
office, store, warehouse, factory or other place of
storage for purposes of this Section. Sales of tangible
personal property are not in this State if the seller
and purchaser would be members of the same unitary
business group but for the fact that either the seller
or purchaser is a person with 80% or more of total
business activity outside of the United States and the
property is purchased for resale.
(B-1) Patents, copyrights, trademarks, and similar
items of intangible personal property.
(i) Gross receipts from the licensing, sale, or
other disposition of a patent, copyright, trademark,
or similar item of intangible personal property are in

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this State to the extent the item is utilized in this
State during the year the gross receipts are included
in gross income.
(ii) Place of utilization.
(I) A patent is utilized in a state to the
extent that it is employed in production,
fabrication, manufacturing, or other processing in
the state or to the extent that a patented product
is produced in the state. If a patent is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction equal
to the gross receipts of the licensee or purchaser
from sales or leases of items produced,
fabricated, manufactured, or processed within that
state using the patent and of patented items
produced within that state, divided by the total of
such gross receipts for all states in which the
patent is utilized.
(II) A copyright is utilized in a state to the
extent that printing or other publication
originates in the state. If a copyright is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction equal
to the gross receipts from sales or licenses of
materials printed or published in that state
divided by the total of such gross receipts for all

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states in which the copyright is utilized.
(III) Trademarks and other items of intangible
personal property governed by this paragraph (B-1)
are utilized in the state in which the commercial
domicile of the licensee or purchaser is located.
(iii) If the state of utilization of an item of
property governed by this paragraph (B-1) cannot be
determined from the taxpayer's books and records or
from the books and records of any person related to the
taxpayer within the meaning of Section 267(b) of the
Internal Revenue Code, 26 U.S.C. 267, the gross
receipts attributable to that item shall be excluded
from both the numerator and the denominator of the
sales factor.
(B-2) Gross receipts from the license, sale, or other
disposition of patents, copyrights, trademarks, and
similar items of intangible personal property may be
included in the numerator or denominator of the sales
factor only if gross receipts from licenses, sales, or
other disposition of such items comprise more than 50% of
the taxpayer's total gross receipts included in gross
income during the tax year and during each of the 2
immediately preceding tax years; provided that, when a
taxpayer is a member of a unitary business group, such
determination shall be made on the basis of the gross
receipts of the entire unitary business group.

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(B-5) For taxable years ending on or after December 31,
2008, except as provided in subsections (ii) through (vii),
receipts from the sale of telecommunications service or
mobile telecommunications service are in this State if the
customer's service address is in this State.
(i) For purposes of this subparagraph (B-5), the
follow terms have the following meanings:
"Ancillary services" means services that are
associated with or incidental to the provision of
"telecommunications services", including but not
limited to "detailed telecommunications billing",
"directory assistance", "vertical service", and "voice
mail services".
"Air-to-Ground Radiotelephone service" means a
radio service, as that term is defined in 47 CFR 22.99,
in which common carriers are authorized to offer and
provide radio telecommunications service for hire to
subscribers in aircraft.
"Call-by-call Basis" means any method of charging
for telecommunications services where the price is
measured by individual calls.
"Communications Channel" means a physical or
virtual path of communications over which signals are
transmitted between or among customer channel
termination points.
"Conference bridging service" means an "ancillary

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service" that links two or more participants of an
audio or video conference call and may include the
provision of a telephone number. "Conference bridging
service" does not include the "telecommunications
services" used to reach the conference bridge.
"Customer Channel Termination Point" means the
location where the customer either inputs or receives
the communications.
"Detailed telecommunications billing service"
means an "ancillary service" of separately stating
information pertaining to individual calls on a
customer's billing statement.
"Directory assistance" means an "ancillary
service" of providing telephone number information,
and/or address information.
"Home service provider" means the facilities based
carrier or reseller with which the customer contracts
for the provision of mobile telecommunications
services.
"Mobile telecommunications service" means
commercial mobile radio service, as defined in Section
20.3 of Title 47 of the Code of Federal Regulations as
in effect on June 1, 1999.
"Place of primary use" means the street address
representative of where the customer's use of the
telecommunications service primarily occurs, which

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must be the residential street address or the primary
business street address of the customer. In the case of
mobile telecommunications services, "place of primary
use" must be within the licensed service area of the
home service provider.
"Post-paid telecommunication service" means the
telecommunications service obtained by making a
payment on a call-by-call basis either through the use
of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by
charge made to a telephone number which is not
associated with the origination or termination of the
telecommunications service. A post-paid calling
service includes telecommunications service, except a
prepaid wireless calling service, that would be a
prepaid calling service except it is not exclusively a
telecommunication service.
"Prepaid telecommunication service" means the
right to access exclusively telecommunications
services, which must be paid for in advance and which
enables the origination of calls using an access number
or authorization code, whether manually or
electronically dialed, and that is sold in
predetermined units or dollars of which the number
declines with use in a known amount.
"Prepaid Mobile telecommunication service" means a

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telecommunications service that provides the right to
utilize mobile wireless service as well as other
non-telecommunication services, including but not
limited to ancillary services, which must be paid for
in advance that is sold in predetermined units or
dollars of which the number declines with use in a
known amount.
"Private communication service" means a
telecommunication service that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
other associated services that are provided in
connection with the use of such channel or channels.
"Service address" means:
(a) The location of the telecommunications
equipment to which a customer's call is charged and
from which the call originates or terminates,
regardless of where the call is billed or paid;
(b) If the location in line (a) is not known,
service address means the origination point of the
signal of the telecommunications services first
identified by either the seller's
telecommunications system or in information

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received by the seller from its service provider
where the system used to transport such signals is
not that of the seller; and
(c) If the locations in line (a) and line (b)
are not known, the service address means the
location of the customer's place of primary use.
"Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data,
audio, video, or any other information or signals to a
point, or between or among points. The term
"telecommunications service" includes such
transmission, conveyance, or routing in which computer
processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service is referred to as voice over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications service" does not include:
(a) Data processing and information services
that allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser when such
purchaser's primary purpose for the underlying
transaction is the processed data or information;
(b) Installation or maintenance of wiring or

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equipment on a customer's premises;
(c) Tangible personal property;
(d) Advertising, including but not limited to
directory advertising.
(e) Billing and collection services provided
to third parties;
(f) Internet access service;
(g) Radio and television audio and video
programming services, regardless of the medium,
including the furnishing of transmission,
conveyance and routing of such services by the
programming service provider. Radio and television
audio and video programming services shall include
but not be limited to cable service as defined in
47 USC 522(6) and audio and video programming
services delivered by commercial mobile radio
service providers, as defined in 47 CFR 20.3;
(h) "Ancillary services"; or
(i) Digital products "delivered
electronically", including but not limited to
software, music, video, reading materials or ring
tones.
"Vertical service" means an "ancillary service"
that is offered in connection with one or more
"telecommunications services", which offers advanced
calling features that allow customers to identify

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callers and to manage multiple calls and call
connections, including "conference bridging services".
"Voice mail service" means an "ancillary service"
that enables the customer to store, send or receive
recorded messages. "Voice mail service" does not
include any "vertical services" that the customer may
be required to have in order to utilize the "voice mail
service".
(ii) Receipts from the sale of telecommunications
service sold on an individual call-by-call basis are in
this State if either of the following applies:
(a) The call both originates and terminates in
this State.
(b) The call either originates or terminates
in this State and the service address is located in
this State.
(iii) Receipts from the sale of postpaid
telecommunications service at retail are in this State
if the origination point of the telecommunication
signal, as first identified by the service provider's
telecommunication system or as identified by
information received by the seller from its service
provider if the system used to transport
telecommunication signals is not the seller's, is
located in this State.
(iv) Receipts from the sale of prepaid

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telecommunications service or prepaid mobile
telecommunications service at retail are in this State
if the purchaser obtains the prepaid card or similar
means of conveyance at a location in this State.
Receipts from recharging a prepaid telecommunications
service or mobile telecommunications service is in
this State if the purchaser's billing information
indicates a location in this State.
(v) Receipts from the sale of private
communication services are in this State as follows:
(a) 100% of receipts from charges imposed at
each channel termination point in this State.
(b) 100% of receipts from charges for the total
channel mileage between each channel termination
point in this State.
(c) 50% of the total receipts from charges for
service segments when those segments are between 2
customer channel termination points, 1 of which is
located in this State and the other is located
outside of this State, which segments are
separately charged.
(d) The receipts from charges for service
segments with a channel termination point located
in this State and in two or more other states, and
which segments are not separately billed, are in
this State based on a percentage determined by

HB3831 - 25 - LRB096 11651 HLH 22226 b
dividing the number of customer channel
termination points in this State by the total
number of customer channel termination points.
(vi) Receipts from charges for ancillary services
for telecommunications service sold to customers at
retail are in this State if the customer's primary
place of use of telecommunications services associated
with those ancillary services is in this State. If the
seller of those ancillary services cannot determine
where the associated telecommunications are located,
then the ancillary services shall be based on the
location of the purchaser.
(vii) Receipts to access a carrier's network or
from the sale of telecommunication services or
ancillary services for resale are in this State as
follows:
(a) 100% of the receipts from access fees
attributable to intrastate telecommunications
service that both originates and terminates in
this State.
(b) 50% of the receipts from access fees
attributable to interstate telecommunications
service if the interstate call either originates
or terminates in this State.
(c) 100% of the receipts from interstate end
user access line charges, if the customer's

HB3831 - 26 - LRB096 11651 HLH 22226 b
service address is in this State. As used in this
subdivision, "interstate end user access line
charges" includes, but is not limited to, the
surcharge approved by the federal communications
commission and levied pursuant to 47 CFR 69.
(d) Gross receipts from sales of
telecommunication services or from ancillary
services for telecommunications services sold to
other telecommunication service providers for
resale shall be sourced to this State using the
apportionment concepts used for non-resale
receipts of telecommunications services if the
information is readily available to make that
determination. If the information is not readily
available, then the taxpayer may use any other
reasonable and consistent method.
(B-10) Gross receipts from winnings under the Illinois
Lottery Law, from the assignment of a prize under Section
13.1 of the Illinois Lottery Law, from winnings from
pari-mutuel wagering conducted at a wagering facility
licensed under the Illinois Horse Racing Act of 1975, and
from winnings from gambling games conducted on a riverboat
licensed under the Riverboat Gambling Act are in this
State. This paragraph (B-10) applies only to taxable years
ending on or after December 31, 2009.
(C) For taxable years ending before December 31, 2008,

HB3831 - 27 - LRB096 11651 HLH 22226 b
sales, other than sales governed by paragraphs (B), (B-1),
and (B-2), are in this State if:
(i) The income-producing activity is performed in
this State; or
(ii) The income-producing activity is performed
both within and without this State and a greater
proportion of the income-producing activity is
performed within this State than without this State,
based on performance costs.
(C-5) For taxable years ending on or after December 31,
2008, sales, other than sales governed by paragraphs (B),
(B-1), (B-2), and (B-5), and (B-10) are in this State if
any of the following criteria are met:
(i) Sales from the sale or lease of real property
are in this State if the property is located in this
State.
(ii) Sales from the lease or rental of tangible
personal property are in this State if the property is
located in this State during the rental period. Sales
from the lease or rental of tangible personal property
that is characteristically moving property, including,
but not limited to, motor vehicles, rolling stock,
aircraft, vessels, or mobile equipment are in this
State to the extent that the property is used in this
State.
(iii) In the case of interest, net gains (but not

HB3831 - 28 - LRB096 11651 HLH 22226 b
less than zero) and other items of income from
intangible personal property, the sale is in this State
if:
(a) in the case of a taxpayer who is a dealer
in the item of intangible personal property within
the meaning of Section 475 of the Internal Revenue
Code, the income or gain is received from a
customer in this State. For purposes of this
subparagraph, a customer is in this State if the
customer is an individual, trust or estate who is a
resident of this State and, for all other
customers, if the customer's commercial domicile
is in this State. Unless the dealer has actual
knowledge of the residence or commercial domicile
of a customer during a taxable year, the customer
shall be deemed to be a customer in this State if
the billing address of the customer, as shown in
the records of the dealer, is in this State; or
(b) in all other cases, if the
income-producing activity of the taxpayer is
performed in this State or, if the
income-producing activity of the taxpayer is
performed both within and without this State, if a
greater proportion of the income-producing
activity of the taxpayer is performed within this
State than in any other state, based on performance

HB3831 - 29 - LRB096 11651 HLH 22226 b
costs.
(iv) Sales of services are in this State if the
services are received in this State. For the purposes
of this section, gross receipts from the performance of
services provided to a corporation, partnership, or
trust may only be attributed to a state where that
corporation, partnership, or trust has a fixed place of
business. If the state where the services are received
is not readily determinable or is a state where the
corporation, partnership, or trust receiving the
service does not have a fixed place of business, the
services shall be deemed to be received at the location
of the office of the customer from which the services
were ordered in the regular course of the customer's
trade or business. If the ordering office cannot be
determined, the services shall be deemed to be received
at the office of the customer to which the services are
billed. If the taxpayer is not taxable in the state in
which the services are received, the sale must be
excluded from both the numerator and the denominator of
the sales factor. The Department shall adopt rules
prescribing where specific types of service are
received, including, but not limited to, broadcast,
cable, advertising, publishing, and utility service.
(D) For taxable years ending on or after December 31,
1995, the following items of income shall not be included

HB3831 - 30 - LRB096 11651 HLH 22226 b
in the numerator or denominator of the sales factor:
dividends; amounts included under Section 78 of the
Internal Revenue Code; and Subpart F income as defined in
Section 952 of the Internal Revenue Code. No inference
shall be drawn from the enactment of this paragraph (D) in
construing this Section for taxable years ending before
December 31, 1995.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years
ending on or after December 31, 1999, provided that a
taxpayer may elect to apply the provisions of these
paragraphs to prior tax years. Such election shall be made
in the form and manner prescribed by the Department, shall
be irrevocable, and shall apply to all tax years; provided
that, if a taxpayer's Illinois income tax liability for any
tax year, as assessed under Section 903 prior to January 1,
1999, was computed in a manner contrary to the provisions
of paragraphs (B-1) or (B-2), no refund shall be payable to
the taxpayer for that tax year to the extent such refund is
the result of applying the provisions of paragraph (B-1) or
(B-2) retroactively. In the case of a unitary business
group, such election shall apply to all members of such
group for every tax year such group is in existence, but
shall not apply to any taxpayer for any period during which
that taxpayer is not a member of such group.
(b) Insurance companies.
(1) In general. Except as otherwise provided by

HB3831 - 31 - LRB096 11651 HLH 22226 b
paragraph (2), business income of an insurance company for
a taxable year shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the direct premiums written for insurance upon
property or risk in this State, and the denominator of
which is the direct premiums written for insurance upon
property or risk everywhere. For purposes of this
subsection, the term "direct premiums written" means the
total amount of direct premiums written, assessments and
annuity considerations as reported for the taxable year on
the annual statement filed by the company with the Illinois
Director of Insurance in the form approved by the National
Convention of Insurance Commissioners or such other form as
may be prescribed in lieu thereof.
(2) Reinsurance. If the principal source of premiums
written by an insurance company consists of premiums for
reinsurance accepted by it, the business income of such
company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the
sum of (i) direct premiums written for insurance upon
property or risk in this State, plus (ii) premiums written
for reinsurance accepted in respect of property or risk in
this State, and the denominator of which is the sum of
(iii) direct premiums written for insurance upon property
or risk everywhere, plus (iv) premiums written for
reinsurance accepted in respect of property or risk

HB3831 - 32 - LRB096 11651 HLH 22226 b
everywhere. For taxable years ending before December 31,
2008, for purposes of this paragraph, premiums written for
reinsurance accepted in respect of property or risk in this
State, whether or not otherwise determinable, may, at the
election of the company, be determined on the basis of the
proportion which premiums written for reinsurance accepted
from companies commercially domiciled in Illinois bears to
premiums written for reinsurance accepted from all
sources, or, alternatively, in the proportion which the sum
of the direct premiums written for insurance upon property
or risk in this State by each ceding company from which
reinsurance is accepted bears to the sum of the total
direct premiums written by each such ceding company for the
taxable year.
(c) Financial organizations.
(1) In general. For taxable years ending before
December 31, 2008, business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is its business income from sources within this
State, and the denominator of which is its business income
from all sources. For the purposes of this subsection, the
business income of a financial organization from sources
within this State is the sum of the amounts referred to in
subparagraphs (A) through (E) following, but excluding the
adjusted income of an international banking facility as

HB3831 - 33 - LRB096 11651 HLH 22226 b
determined in paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the
operation as a financial organization within this
State. In computing the amounts referred to in
paragraphs (A) through (E) of this subsection, any
amount received by a member of an affiliated group
(determined under Section 1504(a) of the Internal
Revenue Code but without reference to whether any such
corporation is an "includible corporation" under
Section 1504(b) of the Internal Revenue Code) from
another member of such group shall be included only to
the extent such amount exceeds expenses of the
recipient directly related thereto.
(2) International Banking Facility. For taxable years
ending before December 31, 2008:
(A) Adjusted Income. The adjusted income of an

HB3831 - 34 - LRB096 11651 HLH 22226 b
international banking facility is its income reduced
by the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income of
the international banking facility by a fraction, not
greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured
primarily by real estate) and to foreign
governments and other foreign official
institutions, as reported for its branches,
agencies and offices within the state on its
"Consolidated Report of Condition", Schedule A,
Lines 2.c., 5.b., and 7.a., which was filed with
the Federal Deposit Insurance Corporation and
other regulatory authorities, for the year 1980,
minus
The average aggregate, determined on a
quarterly basis, of such loans (other than loans of
an international banking facility), as reported by
the financial institution for its branches,
agencies and offices within the state, on the
corresponding Schedule and lines of the

HB3831 - 35 - LRB096 11651 HLH 22226 b
Consolidated Report of Condition for the current
taxable year, provided, however, that in no case
shall the amount determined in this clause (the
subtrahend) exceed the amount determined in the
preceding clause (the minuend); and
(ii) the denominator shall be the average
aggregate, determined on a quarterly basis, of the
international banking facility's loans to banks in
foreign countries, to foreign domiciled borrowers
(except where secured primarily by real estate)
and to foreign governments and other foreign
official institutions, which were recorded in its
financial accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit
Insurance Corporation and other regulatory authorities
is altered so that the information required for
determining the floor amount is not found on Schedule
A, lines 2.c., 5.b. and 7.a., the financial institution
shall notify the Department and the Department may, by
regulations or otherwise, prescribe or authorize the
use of an alternative source for such information. The
financial institution shall also notify the Department
should its international banking facility fail to
qualify as such, in whole or in part, or should there

HB3831 - 36 - LRB096 11651 HLH 22226 b
be any amendment or change to the Consolidated Report
of Condition, as originally filed, to the extent such
amendment or change alters the information used in
determining the floor amount.
(3) For taxable years ending on or after December 31,
2008, the business income of a financial organization shall
be apportioned to this State by multiplying such income by
a fraction, the numerator of which is its gross receipts
from sources in this State or otherwise attributable to
this State's marketplace and the denominator of which is
its gross receipts everywhere during the taxable year.
"Gross receipts" for purposes of this subparagraph (3)
means gross income, including net taxable gain on
disposition of assets, including securities and money
market instruments, when derived from transactions and
activities in the regular course of the financial
organization's trade or business. The following examples
are illustrative:
(i) Receipts from the lease or rental of real or
tangible personal property are in this State if the
property is located in this State during the rental
period. Receipts from the lease or rental of tangible
personal property that is characteristically moving
property, including, but not limited to, motor
vehicles, rolling stock, aircraft, vessels, or mobile
equipment are from sources in this State to the extent

HB3831 - 37 - LRB096 11651 HLH 22226 b
that the property is used in this State.
(ii) Interest income, commissions, fees, gains on
disposition, and other receipts from assets in the
nature of loans that are secured primarily by real
estate or tangible personal property are from sources
in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on
disposition, and other receipts from consumer loans
that are not secured by real or tangible personal
property are from sources in this State if the debtor
is a resident of this State.
(iv) Interest income, commissions, fees, gains on
disposition, and other receipts from commercial loans
and installment obligations that are not secured by
real or tangible personal property are from sources in
this State if the proceeds of the loan are to be
applied in this State. If it cannot be determined where
the funds are to be applied, the income and receipts
are from sources in this State if the office of the
borrower from which the loan was negotiated in the
regular course of business is located in this State. If
the location of this office cannot be determined, the
income and receipts shall be excluded from the
numerator and denominator of the sales factor.
(v) Interest income, fees, gains on disposition,
service charges, merchant discount income, and other

HB3831 - 38 - LRB096 11651 HLH 22226 b
receipts from credit card receivables are from sources
in this State if the card charges are regularly billed
to a customer in this State.
(vi) Receipts from the performance of services,
including, but not limited to, fiduciary, advisory,
and brokerage services, are in this State if the
services are received in this State within the meaning
of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers
checks and money orders are from sources in this State
if the checks and money orders are issued from a
location within this State.
(viii) Receipts from investment assets and
activities and trading assets and activities are
included in the receipts factor as follows:
(1) Interest, dividends, net gains (but not
less than zero) and other income from investment
assets and activities from trading assets and
activities shall be included in the receipts
factor. Investment assets and activities and
trading assets and activities include but are not
limited to: investment securities; trading account
assets; federal funds; securities purchased and
sold under agreements to resell or repurchase;
options; futures contracts; forward contracts;
notional principal contracts such as swaps;

HB3831 - 39 - LRB096 11651 HLH 22226 b
equities; and foreign currency transactions. With
respect to the investment and trading assets and
activities described in subparagraphs (A) and (B)
of this paragraph, the receipts factor shall
include the amounts described in such
subparagraphs.
(A) The receipts factor shall include the
amount by which interest from federal funds
sold and securities purchased under resale
agreements exceeds interest expense on federal
funds purchased and securities sold under
repurchase agreements.
(B) The receipts factor shall include the
amount by which interest, dividends, gains and
other income from trading assets and
activities, including but not limited to
assets and activities in the matched book, in
the arbitrage book, and foreign currency
transactions, exceed amounts paid in lieu of
interest, amounts paid in lieu of dividends,
and losses from such assets and activities.
(2) The numerator of the receipts factor
includes interest, dividends, net gains (but not
less than zero), and other income from investment
assets and activities and from trading assets and
activities described in paragraph (1) of this

HB3831 - 40 - LRB096 11651 HLH 22226 b
subsection that are attributable to this State.
(A) The amount of interest, dividends, net
gains (but not less than zero), and other
income from investment assets and activities
in the investment account to be attributed to
this State and included in the numerator is
determined by multiplying all such income from
such assets and activities by a fraction, the
numerator of which is the gross income from
such assets and activities which are properly
assigned to a fixed place of business of the
taxpayer within this State and the denominator
of which is the gross income from all such
assets and activities.
(B) The amount of interest from federal
funds sold and purchased and from securities
purchased under resale agreements and
securities sold under repurchase agreements
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (A) of
paragraph (1) of this subsection from such
funds and such securities by a fraction, the
numerator of which is the gross income from
such funds and such securities which are
properly assigned to a fixed place of business

HB3831 - 41 - LRB096 11651 HLH 22226 b
of the taxpayer within this State and the
denominator of which is the gross income from
all such funds and such securities.
(C) The amount of interest, dividends,
gains, and other income from trading assets and
activities, including but not limited to
assets and activities in the matched book, in
the arbitrage book and foreign currency
transactions (but excluding amounts described
in subparagraphs (A) or (B) of this paragraph),
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (B) of
paragraph (1) of this subsection by a fraction,
the numerator of which is the gross income from
such trading assets and activities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such assets and activities.
(D) Properly assigned, for purposes of
this paragraph (2) of this subsection, means
the investment or trading asset or activity is
assigned to the fixed place of business with
which it has a preponderance of substantive
contacts. An investment or trading asset or

HB3831 - 42 - LRB096 11651 HLH 22226 b
activity assigned by the taxpayer to a fixed
place of business without the State shall be
presumed to have been properly assigned if:
(i) the taxpayer has assigned, in the
regular course of its business, such asset
or activity on its records to a fixed place
of business consistent with federal or
state regulatory requirements;
(ii) such assignment on its records is
based upon substantive contacts of the
asset or activity to such fixed place of
business; and
(iii) the taxpayer uses such records
reflecting assignment of such assets or
activities for the filing of all state and
local tax returns for which an assignment
of such assets or activities to a fixed
place of business is required.
(E) The presumption of proper assignment
of an investment or trading asset or activity
provided in subparagraph (D) of paragraph (2)
of this subsection may be rebutted upon a
showing by the Department, supported by a
preponderance of the evidence, that the
preponderance of substantive contacts
regarding such asset or activity did not occur

HB3831 - 43 - LRB096 11651 HLH 22226 b
at the fixed place of business to which it was
assigned on the taxpayer's records. If the
fixed place of business that has a
preponderance of substantive contacts cannot
be determined for an investment or trading
asset or activity to which the presumption in
subparagraph (D) of paragraph (2) of this
subsection does not apply or with respect to
which that presumption has been rebutted, that
asset or activity is properly assigned to the
state in which the taxpayer's commercial
domicile is located. For purposes of this
subparagraph (E), it shall be presumed,
subject to rebuttal, that taxpayer's
commercial domicile is in the state of the
United States or the District of Columbia to
which the greatest number of employees are
regularly connected with the management of the
investment or trading income or out of which
they are working, irrespective of where the
services of such employees are performed, as of
the last day of the taxable year.
(4) (Blank).
(5) (Blank).
(d) Transportation services. For taxable years ending
before December 31, 2008, business income derived from

HB3831 - 44 - LRB096 11651 HLH 22226 b
furnishing transportation services shall be apportioned to
this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived from
transportation by pipeline) shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the
person's
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Interstate Commerce Commission, in the case of
transportation by railroad, and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from transportation
by pipeline shall be apportioned to this State by
multiplying such income by a fraction, the numerator of

HB3831 - 45 - LRB096 11651 HLH 22226 b
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For the purposes of this paragraph, a revenue
mile is the transportation by pipeline of 1 barrel of oil,
1,000 cubic feet of gas, or of any specified quantity of
any other substance, the distance of 1 mile for a
consideration.
(3) For taxable years ending on or after December 31,
2008, business income derived from providing
transportation services other than airline services shall
be apportioned to this State by using a fraction, (a) the
numerator of which shall be (i) all receipts from any
movement or shipment of people, goods, mail, oil, gas, or
any other substance (other than by airline) that both
originates and terminates in this State, plus (ii) that
portion of the person's gross receipts from movements or
shipments of people, goods, mail, oil, gas, or any other
substance (other than by airline) that originates in one
state or jurisdiction and terminates in another state or
jurisdiction, that is determined by the ratio that the
miles traveled in this State bears to total miles
everywhere and (b) the denominator of which shall be all
revenue derived from the movement or shipment of people,
goods, mail, oil, gas, or any other substance (other than
by airline). Where a taxpayer is engaged in the
transportation of both passengers and freight, the

HB3831 - 46 - LRB096 11651 HLH 22226 b
fraction above referred to shall first be determined
separately for passenger miles and freight miles. Then an
average of the passenger miles fraction and the freight
miles fraction shall be weighted to reflect the taxpayer's:
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Surface Transportation Board, in the case of
transportation by railroad; and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(4) For taxable years ending on or after December 31,
2008, business income derived from furnishing airline
transportation services shall be apportioned to this State
by multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For purposes of this paragraph, a revenue mile
is the transportation of one passenger or one net ton of
freight the distance of one mile for a consideration. If a
person is engaged in the transportation of both passengers
and freight, the fraction above referred to shall be
determined by means of an average of the passenger revenue
mile fraction and the freight revenue mile fraction,
weighted to reflect the person's relative gross receipts
from passenger and freight airline transportation.

HB3831 - 47 - LRB096 11651 HLH 22226 b
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business income
attributable to this State by any such member or members shall
be apportioned by means of the combined apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) and of
subsection (h) do not fairly represent the extent of a person's
business activity in this State, the person may petition for,
or the Director may, without a petition, permit or require, in
respect of all or any part of the person's business activity,
if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;
(3) The inclusion of one or more additional factors
which will fairly represent the person's business
activities in this State; or
(4) The employment of any other method to effectuate an
equitable allocation and apportionment of the person's
business income.
(g) Cross reference. For allocation of business income by
residents, see Section 301(a).
(h) For tax years ending on or after December 31, 1998, the
apportionment factor of persons who apportion their business
income to this State under subsection (a) shall be equal to:

HB3831 - 48 - LRB096 11651 HLH 22226 b
(1) for tax years ending on or after December 31, 1998
and before December 31, 1999, 16 2/3% of the property
factor plus 16 2/3% of the payroll factor plus 66 2/3% of
the sales factor;
(2) for tax years ending on or after December 31, 1999
and before December 31, 2000, 8 1/3% of the property factor
plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
factor;
(3) for tax years ending on or after December 31, 2000,
the sales factor.
If, in any tax year ending on or after December 31, 1998 and
before December 31, 2000, the denominator of the payroll,
property, or sales factor is zero, the apportionment factor
computed in paragraph (1) or (2) of this subsection for that
year shall be divided by an amount equal to 100% minus the
percentage weight given to each factor whose denominator is
equal to zero.
(Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07;
95-707, eff. 1-11-08.)
(35 ILCS 5/605) (from Ch. 120, par. 6-605)
Sec. 605. The Department may adopt rules and regulations
for payment of taxes due under this Act by credit card,
provided that, prior to December 31, 2009, the Department may
accept payment by credit card only when the Department is not
required to pay a discount fee charged by the credit card

HB3831 - 49 - LRB096 11651 HLH 22226 b
issuer.
(Source: P.A. 87-1175; 87-1189.)
(35 ILCS 5/701) (from Ch. 120, par. 7-701)
Sec. 701. Requirement and Amount of Withholding.
(a) In General. Every employer maintaining an office or
transacting business within this State and required under the
provisions of the Internal Revenue Code to withhold a tax on:
(1) compensation paid in this State (as determined
under Section 304(a)(2)(B) to an individual; or
(2) payments described in subsection (b) shall deduct
and withhold from such compensation for each payroll period
(as defined in Section 3401 of the Internal Revenue Code)
an amount equal to the amount by which such individual's
compensation exceeds the proportionate part of this
withholding exemption (computed as provided in Section
702) attributable to the payroll period for which such
compensation is payable multiplied by a percentage equal to
the percentage tax rate for individuals provided in
subsection (b) of Section 201.
(b) Payment to Residents. Any payment (including
compensation, but not including a payment from which
withholding is required under Section 710 of this Act) to a
resident by a payor maintaining an office or transacting
business within this State (including any agency, officer, or
employee of this State or of any political subdivision of this

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State) and on which withholding of tax is required under the
provisions of the Internal Revenue Code shall be deemed to be
compensation paid in this State by an employer to an employee
for the purposes of Article 7 and Section 601(b)(1) to the
extent such payment is included in the recipient's base income
and not subjected to withholding by another state.
Notwithstanding any other provision to the contrary, no amount
shall be withheld from unemployment insurance benefit payments
made to an individual pursuant to the Unemployment Insurance
Act unless the individual has voluntarily elected the
withholding pursuant to rules promulgated by the Director of
Employment Security.
(c) Special Definitions. Withholding shall be considered
required under the provisions of the Internal Revenue Code to
the extent the Internal Revenue Code either requires
withholding or allows for voluntary withholding the payor and
recipient have entered into such a voluntary withholding
agreement. For the purposes of Article 7 and Section 1002(c)
the term "employer" includes any payor who is required to
withhold tax pursuant to this Section.
(d) Reciprocal Exemption. The Director may enter into an
agreement with the taxing authorities of any state which
imposes a tax on or measured by income to provide that
compensation paid in such state to residents of this State
shall be exempt from withholding of such tax; in such case, any
compensation paid in this State to residents of such state

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shall be exempt from withholding. All reciprocal agreements
shall be subject to the requirements of Section 2505-575 of the
Department of Revenue Law (20 ILCS 2505/2505-575).
(e) Notwithstanding subsection (a)(2) of this Section, no
withholding is required on payments for which withholding is
required under Section 3405 or 3406 of the Internal Revenue
Code of 1954.
(Source: P.A. 92-846, eff. 8-23-02; 93-634, eff. 1-1-04.)
(35 ILCS 5/710) (from Ch. 120, par. 7-710)
Sec. 710. Withholding from lottery, wagering, and gambling
winnings. (a) In General.
(1) Any person making a payment to a resident or
nonresident of winnings under the Illinois Lottery Law and
not required to withhold Illinois income tax from such
payment under Subsection (b) of Section 701 of this Act
because those winnings are not subject to Federal income
tax withholding, must withhold Illinois income tax from
such payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that withholding is not required if such payment
of winnings is less than $1,000.
(2) In the case of an assignment of a lottery prize
under Section 13.1 of the Illinois Lottery Law, any person
making a payment of the purchase price after December 31,
2009, shall withhold from the amount of each payment at a

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rate equal to the percentage tax rate for individuals
provided in subsection (b) of Section 201.
(3) Any person making a payment after December 31,
2009, to a resident or nonresident of winnings from
pari-mutuel wagering conducted at a wagering facility
licensed under the Illinois Horse Racing Act of 1975 or
from gambling games conducted on a riverboat licensed under
the Riverboat Gambling Act must withhold Illinois income
tax from such payment at a rate equal to the percentage tax
rate for individuals provided in subsection (b) of Section
201, provided that withholding is required only if the
payment must be reported to the Internal Revenue Service by
the person making the payment.
(b) Credit for taxes withheld. Any amount withheld under
Subsection (a) shall be a credit against the Illinois income
tax liability of the person to whom the payment of winnings was
made for the taxable year in which that person incurred an
Illinois income tax liability with respect to those winnings.
(Source: P.A. 85-731.)
Section 20. The Retailers' Occupation Tax Act is amended by
changing Sections 5 and 5f as follows:
(35 ILCS 120/5) (from Ch. 120, par. 444)
Sec. 5. In case any person engaged in the business of
selling tangible personal property at retail fails to file a

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return when and as herein required, but thereafter, prior to
the Department's issuance of a notice of tax liability under
this Section, files a return and pays the tax, he shall also
pay a penalty in an amount determined in accordance with
Section 3-3 of the Uniform Penalty and Interest Act.
In case any person engaged in the business of selling
tangible personal property at retail files the return at the
time required by this Act but fails to pay the tax, or any part
thereof, when due, a penalty in an amount determined in
accordance with Section 3-3 of the Uniform Penalty and Interest
Act shall be added thereto.
In case any person engaged in the business of selling
tangible personal property at retail fails to file a return
when and as herein required, but thereafter, prior to the
Department's issuance of a notice of tax liability under this
Section, files a return but fails to pay the entire tax, a
penalty in an amount determined in accordance with Section 3-3
of the Uniform Penalty and Interest Act shall be added thereto.
In case any person engaged in the business of selling
tangible personal property at retail fails to file a return,
the Department shall determine the amount of tax due from him
according to its best judgment and information, which amount so
fixed by the Department shall be prima facie correct and shall
be prima facie evidence of the correctness of the amount of tax
due, as shown in such determination. In making any such
determination of tax due, it shall be permissible for the

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Department to show a figure that represents the tax due for any
given period of 6 months instead of showing the amount of tax
due for each month separately. Proof of such determination by
the Department may be made at any hearing before the Department
or in any legal proceeding by a reproduced copy or computer
print-out of the Department's record relating thereto in the
name of the Department under the certificate of the Director of
Revenue. If reproduced copies of the Department's records are
offered as proof of such determination, the Director must
certify that those copies are true and exact copies of records
on file with the Department. If computer print-outs of the
Department's records are offered as proof of such
determination, the Director must certify that those computer
print-outs are true and exact representations of records
properly entered into standard electronic computing equipment,
in the regular course of the Department's business, at or
reasonably near the time of the occurrence of the facts
recorded, from trustworthy and reliable information. Such
certified reproduced copy or certified computer print-out
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein. The Department shall issue the taxpayer a notice
of tax liability for the amount of tax claimed by the
Department to be due, together with a penalty of 30% thereof.
However, where the failure to file any tax return required

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under this Act on the date prescribed therefor (including any
extensions thereof), is shown to be unintentional and
nonfraudulent and has not occurred in the 6 2 years immediately
preceding the failure to file on the prescribed date or is due
to other reasonable cause the penalties imposed by this Act
shall not apply.
If such person or the legal representative of such person
files, within 60 days after such notice, a protest to such
notice of tax liability and requests a hearing thereon, the
Department shall give notice to such person or the legal
representative of such person of the time and place fixed for
such hearing, and shall hold a hearing in conformity with the
provisions of this Act, and pursuant thereto shall issue a
final assessment to such person or to the legal representative
of such person for the amount found to be due as a result of
such hearing.
If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice, such notice of tax liability shall become final without
the necessity of a final assessment being issued and shall be
deemed to be a final assessment.
After the issuance of a final assessment, or a notice of
tax liability which becomes final without the necessity of
actually issuing a final assessment as hereinbefore provided,
the Department, at any time before such assessment is reduced
to judgment, may (subject to rules of the Department) grant a

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rehearing (or grant departmental review and hold an original
hearing if no previous hearing in the matter has been held)
upon the application of the person aggrieved. Pursuant to such
hearing or rehearing, the Department shall issue a revised
final assessment to such person or his legal representative for
the amount found to be due as a result of such hearing or
rehearing.
Except in case of failure to file a return, or with the
consent of the person to whom the notice of tax liability is to
be issued, no notice of tax liability shall be issued on and
after each July 1 and January 1 covering gross receipts
received during any month or period of time more than 3 years
prior to such July 1 and January 1, respectively, except that
if a return is not filed at the required time, a notice of tax
liability may be issued not later than 3 years after the time
the return is filed. The foregoing limitations upon the
issuance of a notice of tax liability shall not apply to the
issuance of any such notice with respect to any period of time
prior thereto in cases where the Department has, within the
period of limitation then provided, notified a person of the
amount of tax computed even though the Department had not
determined the amount of tax due from such person in the manner
required herein prior to the issuance of such notice, but in no
case shall the amount of any such notice of tax liability for
any period otherwise barred by this Act exceed for such period
the amount shown in the notice theretofore issued.

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If, when a tax or penalty under this Act becomes due and
payable, the person alleged to be liable therefor is out of the
State, the notice of tax liability may be issued within the
times herein limited after his or her coming into or return to
the State; and if, after the tax or penalty under this Act
becomes due and payable, the person alleged to be liable
therefor departs from and remains out of the State, the time of
his or her absence is no part of the time limited for the
issuance of the notice of tax liability; but the foregoing
provisions concerning absence from the State shall not apply to
any case in which, at the time when a tax or penalty becomes
due under this Act, the person allegedly liable therefor is not
a resident of this State.
The time limitation period on the Department's right to
issue a notice of tax liability shall not run during any period
of time in which the order of any court has the effect of
enjoining or restraining the Department from issuing the notice
of tax liability.
In case of failure to pay the tax, or any portion thereof,
or any penalty provided for in this Act, or interest, when due,
the Department may bring suit to recover the amount of such
tax, or portion thereof, or penalty or interest; or, if the
taxpayer has died or become a person under legal disability,
may file a claim therefor against his estate; provided that no
such suit with respect to any tax, or portion thereof, or
penalty, or interest shall be instituted more than 6 2 years

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after the date any proceedings in court for review thereof have
terminated or the time for the taking thereof has expired
without such proceedings being instituted, except with the
consent of the person from whom such tax or penalty or interest
is due; nor, except with such consent, shall such suit be
instituted more than 6 2 years after the date any return is
filed with the Department in cases where the return constitutes
the basis for the suit for unpaid tax, or portion thereof, or
penalty provided for in this Act, or interest: Provided that
the time limitation period on the Department's right to bring
any such suit shall not run during any period of time in which
the order of any court has the effect of enjoining or
restraining the Department from bringing such suit.
After the expiration of the period within which the person
assessed may file an action for judicial review under the
Administrative Review Law without such an action being filed, a
certified copy of the final assessment or revised final
assessment of the Department may be filed with the Circuit
Court of the county in which the taxpayer has his principal
place of business, or of Sangamon County in those cases in
which the taxpayer does not have his principal place of
business in this State. The certified copy of the final
assessment or revised final assessment shall be accompanied by
a certification which recites facts that are sufficient to show
that the Department complied with the jurisdictional
requirements of the Act in arriving at its final assessment or

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its revised final assessment and that the taxpayer had his
opportunity for an administrative hearing and for judicial
review, whether he availed himself or herself of either or both
of these opportunities or not. If the court is satisfied that
the Department complied with the jurisdictional requirements
of the Act in arriving at its final assessment or its revised
final assessment and that the taxpayer had his opportunity for
an administrative hearing and for judicial review, whether he
availed himself of either or both of these opportunities or
not, the court shall render judgment in favor of the Department
and against the taxpayer for the amount shown to be due by the
final assessment or the revised final assessment, plus any
interest which may be due, and such judgment shall be entered
in the judgment docket of the court. Such judgment shall bear
the rate of interest as set by the Uniform Penalty and Interest
Act, but otherwise shall have the same effect as other
judgments. The judgment may be enforced, and all laws
applicable to sales for the enforcement of a judgment shall be
applicable to sales made under such judgments. The Department
shall file the certified copy of its assessment, as herein
provided, with the Circuit Court within 6 2 years after such
assessment becomes final except when the taxpayer consents in
writing to an extension of such filing period, and except that
the time limitation period on the Department's right to file
the certified copy of its assessment with the Circuit Court
shall not run during any period of time in which the order of

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any court has the effect of enjoining or restraining the
Department from filing such certified copy of its assessment
with the Circuit Court.
If, when the cause of action for a proceeding in court
accrues against a person, he or she is out of the State, the
action may be commenced within the times herein limited, after
his or her coming into or return to the State; and if, after
the cause of action accrues, he or she departs from and remains
out of the State, the time of his or her absence is no part of
the time limited for the commencement of the action; but the
foregoing provisions concerning absence from the State shall
not apply to any case in which, at the time the cause of action
accrues, the party against whom the cause of action accrues is
not a resident of this State. The time within which a court
action is to be commenced by the Department hereunder shall not
run from the date the taxpayer files a petition in bankruptcy
under the Federal Bankruptcy Act until 30 days after notice of
termination or expiration of the automatic stay imposed by the
Federal Bankruptcy Act.
No claim shall be filed against the estate of any deceased
person or any person under legal disability for any tax or
penalty or part of either, or interest, except in the manner
prescribed and within the time limited by the Probate Act of
1975, as amended.
The collection of tax or penalty or interest by any means
provided for herein shall not be a bar to any prosecution under

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this Act.
In addition to any penalty provided for in this Act, any
amount of tax which is not paid when due shall bear interest at
the rate and in the manner specified in Sections 3-2 and 3-9 of
the Uniform Penalty and Interest Act from the date when such
tax becomes past due until such tax is paid or a judgment
therefor is obtained by the Department. If the time for making
or completing an audit of a taxpayer's books and records is
extended with the taxpayer's consent, at the request of and for
the convenience of the Department, beyond the date on which the
statute of limitations upon the issuance of a notice of tax
liability by the Department otherwise would run, no interest
shall accrue during the period of such extension or until a
Notice of Tax Liability is issued, whichever occurs first.
In addition to any other remedy provided by this Act, and
regardless of whether the Department is making or intends to
make use of such other remedy, where a corporation or limited
liability company registered under this Act violates the
provisions of this Act or of any rule or regulation promulgated
thereunder, the Department may give notice to the Attorney
General of the identity of such a corporation or limited
liability company and of the violations committed by such a
corporation or limited liability company, for such action as is
not already provided for by this Act and as the Attorney
General may deem appropriate.
If the Department determines that an amount of tax or

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penalty or interest was incorrectly assessed, whether as the
result of a mistake of fact or an error of law, the Department
shall waive the amount of tax or penalty or interest that
accrued due to the incorrect assessment.
(Source: P.A. 87-193; 87-205; 87-895; 88-480.)
(35 ILCS 120/5f) (from Ch. 120, par. 444f)
Sec. 5f. In addition to any other remedy provided for by
the laws of this State, if the tax imposed by this Act is not
paid within the time required by this Act, the Department, or
some person designated by it, may cause a demand to be made on
the taxpayer for the payment of the tax. If the tax remains
unpaid for 10 days after demand has been made and no
proceedings have been taken for review, the Department may
issue a warrant directed to the sheriff of any county of the
State or to any State officer authorized to serve process,
commanding the sheriff or other officer to levy upon property
and rights to property (whether real or personal, tangible or
intangible) of the taxpayer, without exemption, found within
his or her jurisdiction, for the payment of the amount of
unpaid tax with the added penalties, interest and the cost of
executing the warrant. The term "levy" includes the power of
distraint and seizure by any means. In any case in which the
warrant to levy has been issued, the sheriff or other person to
whom the warrant was directed may seize and sell such property
or rights to property. Such warrant shall be returned to the

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Department together with the money collected by virtue of the
warrant within the time specified in the warrant, which may not
be less than 20 nor more than 90 days from the date of the
warrant. The sheriff or other officer to whom such warrant is
directed shall proceed in the same manner as is prescribed by
law for proceeding against property to enforce judgments which
are entered by a circuit court of this State, and is entitled
to the same fees for his or her services in executing the
warrant, to be collected in the same manner. The Department, or
some officer, employee or agent designated by it, may bid for
and purchase any such property sold.
No proceedings for a levy under this Section may be
commenced more than 20 years after the latest date for filing
of the notice of lien under Section 5b of this Act, without
regard to whether such notice was actually filed.
Any officer or employee of the Department designated in
writing by the Director is authorized to serve process under
this Section to levy upon accounts or other intangible assets
of a taxpayer held by a financial organization, as defined by
Section 1501 of the Illinois Income Tax Act. In addition to any
other provisions of this Section, any officer or employee of
the Department designated in writing by the Director may levy
upon the following property and rights to property belonging to
a taxpayer: contractual payments, accounts and notes
receivable and other evidences of debt, and interest on bonds,
by serving a notice of levy on the person making such payment.

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Levy shall not be made until the Department has caused a demand
to be made on the taxpayer in the manner provided above. In
addition to any other provisions of this Section, any officer
or employee of the Department designated in writing by the
Director, may levy upon the salary, wages, commissions and
bonuses of any employee, including officers, employees, or
elected officials of the United States as authorized by Section
5520a of the Government Organization and Employees Act (5
U.S.C. 5520a), but not upon the salary or wages of officers,
employees, or elected officials of any state other than this
State, by serving a notice of levy on the employer. Levy shall
not be made until the Department has caused a demand to be made
on the employee in the manner provided above. The provisions of
Section 12-803 of the Code of Civil Procedure relating to
maximum compensation subject to collection under wage
deduction orders shall apply to all levies made upon
compensation under this Section. To the extent of the amount
due on the levy, the employer or other person making payments
to the taxpayer shall hold any non-exempt wages or other
payments due or which subsequently come due. The levy or
balance due thereon is a lien on wages or other payments due at
the time of the service of the notice of levy, and such lien
shall continue as to subsequent earnings and other payments
until the total amount due upon the levy is paid, except that
such lien on subsequent earnings or other payments shall
terminate sooner if the employment relationship is terminated

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or if the notice of levy is rescinded or modified. The employer
or other person making payments to the taxpayer shall file, on
or before the return dates stated in the notice of levy (which
shall not be more often than bimonthly) a written answer under
oath to interrogatories, setting forth the amount due as wages
or other payments to the taxpayer for the payment periods
ending immediately prior to the appropriate return date. An
employer or other person failing to file, before the return
date stated in the notice of levy, a written answer under oath
to interrogatories, setting forth the amount due as wages or
other payments to the taxpayer for the payment periods ending
immediately prior to the appropriate return date is guilty of a
petty offense and shall be fined $500 for a first offense and
$1,000 for a second or any subsequent offense. A lien obtained
hereunder shall have priority over any subsequent lien obtained
pursuant to Section 12-808 of the Code of Civil Procedure,
except that liens for the support of a spouse or dependent
children shall have priority over all liens obtained hereunder.
In any case where property or rights to property have been
seized by an officer of the Illinois Department of Law
Enforcement, or successor agency thereto, under the authority
of a warrant to levy issued by the Department of Revenue, the
Department of Revenue may take possession of and may sell such
property or rights to property and the Department of Revenue
may contract with third persons to conduct sales of such
property or rights to the property. In the conduct of such

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sales, the Department of Revenue shall proceed in the same
manner as is prescribed by law for proceeding against property
to enforce judgments which are entered by a circuit court of
this State. If, in the Department's opinion, no offer to
purchase at such sale is acceptable and the State's interest
would be better served by retaining the property for sale at a
later date, then the Department may decline to accept any bid
and may retain the property for sale at a later date.
(Source: P.A. 89-399, eff. 8-20-95.)
Section 25. The Illinois Vehicle Code is amended by
changing Section 2-123 as follows:
(625 ILCS 5/2-123) (from Ch. 95 1/2, par. 2-123)
Sec. 2-123. Sale and Distribution of Information.
(a) Except as otherwise provided in this Section, the
Secretary may make the driver's license, vehicle and title
registration lists, in part or in whole, and any statistical
information derived from these lists available to local
governments, elected state officials, state educational
institutions, and all other governmental units of the State and
Federal Government requesting them for governmental purposes.
The Secretary shall require any such applicant for services to
pay for the costs of furnishing such services and the use of
the equipment involved, and in addition is empowered to
establish prices and charges for the services so furnished and

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for the use of the electronic equipment utilized.
(b) The Secretary is further empowered to and he may, in
his discretion, furnish to any applicant, other than listed in
subsection (a) of this Section, vehicle or driver data on a
computer tape, disk, other electronic format or computer
processable medium, or printout at a fixed fee of $250 for
orders received before October 1, 2003 and $500 for orders
received on or after October 1, 2003, in advance, and require
in addition a further sufficient deposit based upon the
Secretary of State's estimate of the total cost of the
information requested and a charge of $25 for orders received
before October 1, 2003 and $50 for orders received on or after
October 1, 2003, per 1,000 units or part thereof identified or
the actual cost, whichever is greater. The Secretary is
authorized to refund any difference between the additional
deposit and the actual cost of the request. This service shall
not be in lieu of an abstract of a driver's record nor of a
title or registration search. This service may be limited to
entities purchasing a minimum number of records as required by
administrative rule. The information sold pursuant to this
subsection shall be the entire vehicle or driver data list, or
part thereof. The information sold pursuant to this subsection
shall not contain personally identifying information unless
the information is to be used for one of the purposes
identified in subsection (f-5) of this Section. Commercial
purchasers of driver and vehicle record databases shall enter

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into a written agreement with the Secretary of State that
includes disclosure of the commercial use of the information to
be purchased.
(b-1) The Secretary is further empowered to and may, in his
or her discretion, furnish vehicle or driver data on a computer
tape, disk, or other electronic format or computer processible
medium, at no fee, to any State or local governmental agency
that uses the information provided by the Secretary to transmit
data back to the Secretary that enables the Secretary to
maintain accurate driving records, including dispositions of
traffic cases. This information may be provided without fee not
more often than once every 6 months.
(c) Secretary of State may issue registration lists. The
Secretary of State may compile a list of all registered
vehicles. Each list of registered vehicles shall be arranged
serially according to the registration numbers assigned to
registered vehicles and may contain in addition the names and
addresses of registered owners and a brief description of each
vehicle including the serial or other identifying number
thereof. Such compilation may be in such form as in the
discretion of the Secretary of State may seem best for the
purposes intended.
(d) The Secretary of State shall furnish no more than 2
current available lists of such registrations to the sheriffs
of all counties and to the chiefs of police of all cities and
villages and towns of 2,000 population and over in this State

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at no cost. Additional copies may be purchased by the sheriffs
or chiefs of police at the fee of $500 each or at the cost of
producing the list as determined by the Secretary of State.
Such lists are to be used for governmental purposes only.
(e) (Blank).
(e-1) (Blank).
(f) The Secretary of State shall make a title or
registration search of the records of his office and a written
report on the same for any person, upon written application of
such person, accompanied by a fee of $5 for each registration
or title search. The written application shall set forth the
intended use of the requested information. No fee shall be
charged for a title or registration search, or for the
certification thereof requested by a government agency. The
report of the title or registration search shall not contain
personally identifying information unless the request for a
search was made for one of the purposes identified in
subsection (f-5) of this Section. The report of the title or
registration search shall not contain highly restricted
personal information unless specifically authorized by this
Code.
The Secretary of State shall certify a title or
registration record upon written request. The fee for
certification shall be $5 in addition to the fee required for a
title or registration search. Certification shall be made under
the signature of the Secretary of State and shall be

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authenticated by Seal of the Secretary of State.
The Secretary of State may notify the vehicle owner or
registrant of the request for purchase of his title or
registration information as the Secretary deems appropriate.
No information shall be released to the requestor until
expiration of a 10 day period. This 10 day period shall not
apply to requests for information made by law enforcement
officials, government agencies, financial institutions,
attorneys, insurers, employers, automobile associated
businesses, persons licensed as a private detective or firms
licensed as a private detective agency under the Private
Detective, Private Alarm, Private Security, Fingerprint
Vendor, and Locksmith Act of 2004, who are employed by or are
acting on behalf of law enforcement officials, government
agencies, financial institutions, attorneys, insurers,
employers, automobile associated businesses, and other
business entities for purposes consistent with the Illinois
Vehicle Code, the vehicle owner or registrant or other entities
as the Secretary may exempt by rule and regulation.
Any misrepresentation made by a requestor of title or
vehicle information shall be punishable as a petty offense,
except in the case of persons licensed as a private detective
or firms licensed as a private detective agency which shall be
subject to disciplinary sanctions under Section 40-10 of the
Private Detective, Private Alarm, Private Security,
Fingerprint Vendor, and Locksmith Act of 2004.

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(f-5) The Secretary of State shall not disclose or
otherwise make available to any person or entity any personally
identifying information obtained by the Secretary of State in
connection with a driver's license, vehicle, or title
registration record unless the information is disclosed for one
of the following purposes:
(1) For use by any government agency, including any
court or law enforcement agency, in carrying out its
functions, or any private person or entity acting on behalf
of a federal, State, or local agency in carrying out its
functions.
(2) For use in connection with matters of motor vehicle
or driver safety and theft; motor vehicle emissions; motor
vehicle product alterations, recalls, or advisories;
performance monitoring of motor vehicles, motor vehicle
parts, and dealers; and removal of non-owner records from
the original owner records of motor vehicle manufacturers.
(3) For use in the normal course of business by a
legitimate business or its agents, employees, or
contractors, but only:
(A) to verify the accuracy of personal information
submitted by an individual to the business or its
agents, employees, or contractors; and
(B) if such information as so submitted is not
correct or is no longer correct, to obtain the correct
information, but only for the purposes of preventing

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fraud by, pursuing legal remedies against, or
recovering on a debt or security interest against, the
individual.
(4) For use in research activities and for use in
producing statistical reports, if the personally
identifying information is not published, redisclosed, or
used to contact individuals.
(5) For use in connection with any civil, criminal,
administrative, or arbitral proceeding in any federal,
State, or local court or agency or before any
self-regulatory body, including the service of process,
investigation in anticipation of litigation, and the
execution or enforcement of judgments and orders, or
pursuant to an order of a federal, State, or local court.
(6) For use by any insurer or insurance support
organization or by a self-insured entity or its agents,
employees, or contractors in connection with claims
investigation activities, antifraud activities, rating, or
underwriting.
(7) For use in providing notice to the owners of towed
or impounded vehicles.
(8) For use by any person licensed as a private
detective or firm licensed as a private detective agency
under the Private Detective, Private Alarm, Private
Security, Fingerprint Vendor, and Locksmith Act of 2004,
private investigative agency or security service licensed

HB3831 - 73 - LRB096 11651 HLH 22226 b
in Illinois for any purpose permitted under this
subsection.
(9) For use by an employer or its agent or insurer to
obtain or verify information relating to a holder of a
commercial driver's license that is required under chapter
313 of title 49 of the United States Code.
(10) For use in connection with the operation of
private toll transportation facilities.
(11) For use by any requester, if the requester
demonstrates it has obtained the written consent of the
individual to whom the information pertains.
(12) For use by members of the news media, as defined
in Section 1-148.5, for the purpose of newsgathering when
the request relates to the operation of a motor vehicle or
public safety.
(13) For any other use specifically authorized by law,
if that use is related to the operation of a motor vehicle
or public safety.
(14) For use by the Department of Revenue in the
administration of any tax administered by the Department of
Revenue or in the collection of any tax or debt that the
Department of Revenue is authorized or required by law to
collect. The Secretary of State may disclose or otherwise
make available to the Department social security numbers
for these purposes.
(f-6) The Secretary of State shall not disclose or

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otherwise make available to any person or entity any highly
restricted personal information obtained by the Secretary of
State in connection with a driver's license, vehicle, or title
registration record unless specifically authorized by this
Code.
(g) 1. The Secretary of State may, upon receipt of a
written request and a fee of $6 before October 1, 2003 and
a fee of $12 on and after October 1, 2003, furnish to the
person or agency so requesting a driver's record. Such
document may include a record of: current driver's license
issuance information, except that the information on
judicial driving permits shall be available only as
otherwise provided by this Code; convictions; orders
entered revoking, suspending or cancelling a driver's
license or privilege; and notations of accident
involvement. All other information, unless otherwise
permitted by this Code, shall remain confidential.
Information released pursuant to a request for a driver's
record shall not contain personally identifying
information, unless the request for the driver's record was
made for one of the purposes set forth in subsection (f-5)
of this Section. The Secretary of State may, without fee,
allow a parent or guardian of a person under the age of 18
years, who holds an instruction permit or graduated
driver's license, to view that person's driving record
online, through a computer connection. The parent or

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guardian's online access to the driving record will
terminate when the instruction permit or graduated
driver's license holder reaches the age of 18.
2. The Secretary of State shall not disclose or
otherwise make available to any person or entity any highly
restricted personal information obtained by the Secretary
of State in connection with a driver's license, vehicle, or
title registration record unless specifically authorized
by this Code. The Secretary of State may certify an
abstract of a driver's record upon written request
therefor. Such certification shall be made under the
signature of the Secretary of State and shall be
authenticated by the Seal of his office.
3. All requests for driving record information shall be
made in a manner prescribed by the Secretary and shall set
forth the intended use of the requested information.
The Secretary of State may notify the affected driver
of the request for purchase of his driver's record as the
Secretary deems appropriate.
No information shall be released to the requester until
expiration of a 10 day period. This 10 day period shall not
apply to requests for information made by law enforcement
officials, government agencies, financial institutions,
attorneys, insurers, employers, automobile associated
businesses, persons licensed as a private detective or
firms licensed as a private detective agency under the

HB3831 - 76 - LRB096 11651 HLH 22226 b
Private Detective, Private Alarm, Private Security,
Fingerprint Vendor, and Locksmith Act of 2004, who are
employed by or are acting on behalf of law enforcement
officials, government agencies, financial institutions,
attorneys, insurers, employers, automobile associated
businesses, and other business entities for purposes
consistent with the Illinois Vehicle Code, the affected
driver or other entities as the Secretary may exempt by
rule and regulation.
Any misrepresentation made by a requestor of driver
information shall be punishable as a petty offense, except
in the case of persons licensed as a private detective or
firms licensed as a private detective agency which shall be
subject to disciplinary sanctions under Section 40-10 of
the Private Detective, Private Alarm, Private Security,
Fingerprint Vendor, and Locksmith Act of 2004.
4. The Secretary of State may furnish without fee, upon
the written request of a law enforcement agency, any
information from a driver's record on file with the
Secretary of State when such information is required in the
enforcement of this Code or any other law relating to the
operation of motor vehicles, including records of
dispositions; documented information involving the use of
a motor vehicle; whether such individual has, or previously
had, a driver's license; and the address and personal
description as reflected on said driver's record.

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5. Except as otherwise provided in this Section, the
Secretary of State may furnish, without fee, information
from an individual driver's record on file, if a written
request therefor is submitted by any public transit system
or authority, public defender, law enforcement agency, a
state or federal agency, or an Illinois local
intergovernmental association, if the request is for the
purpose of a background check of applicants for employment
with the requesting agency, or for the purpose of an
official investigation conducted by the agency, or to
determine a current address for the driver so public funds
can be recovered or paid to the driver, or for any other
purpose set forth in subsection (f-5) of this Section.
The Secretary may also furnish the courts a copy of an
abstract of a driver's record, without fee, subsequent to
an arrest for a violation of Section 11-501 or a similar
provision of a local ordinance. Such abstract may include
records of dispositions; documented information involving
the use of a motor vehicle as contained in the current
file; whether such individual has, or previously had, a
driver's license; and the address and personal description
as reflected on said driver's record.
6. Any certified abstract issued by the Secretary of
State or transmitted electronically by the Secretary of
State pursuant to this Section, to a court or on request of
a law enforcement agency, for the record of a named person

HB3831 - 78 - LRB096 11651 HLH 22226 b
as to the status of the person's driver's license shall be
prima facie evidence of the facts therein stated and if the
name appearing in such abstract is the same as that of a
person named in an information or warrant, such abstract
shall be prima facie evidence that the person named in such
information or warrant is the same person as the person
named in such abstract and shall be admissible for any
prosecution under this Code and be admitted as proof of any
prior conviction or proof of records, notices, or orders
recorded on individual driving records maintained by the
Secretary of State.
7. Subject to any restrictions contained in the
Juvenile Court Act of 1987, and upon receipt of a proper
request and a fee of $6 before October 1, 2003 and a fee of
$12 on or after October 1, 2003, the Secretary of State
shall provide a driver's record to the affected driver, or
the affected driver's attorney, upon verification. Such
record shall contain all the information referred to in
paragraph 1 of this subsection (g) plus: any recorded
accident involvement as a driver; information recorded
pursuant to subsection (e) of Section 6-117 and paragraph
(4) of subsection (a) of Section 6-204 of this Code. All
other information, unless otherwise permitted by this
Code, shall remain confidential.
(h) The Secretary shall not disclose social security
numbers or any associated information obtained from the Social

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Security Administration except pursuant to a written request
by, or with the prior written consent of, the individual
except: (1) to officers and employees of the Secretary who have
a need to know the social security numbers in performance of
their official duties, (2) to law enforcement officials for a
lawful, civil or criminal law enforcement investigation, and if
the head of the law enforcement agency has made a written
request to the Secretary specifying the law enforcement
investigation for which the social security numbers are being
sought, (3) to the United States Department of Transportation,
or any other State, pursuant to the administration and
enforcement of the Commercial Motor Vehicle Safety Act of 1986,
(4) pursuant to the order of a court of competent jurisdiction,
or (5) to the Department of Healthcare and Family Services
(formerly Department of Public Aid) for utilization in the
child support enforcement duties assigned to that Department
under provisions of the Illinois Public Aid Code after the
individual has received advanced meaningful notification of
what redisclosure is sought by the Secretary in accordance with
the federal Privacy Act.
(i) (Blank).
(j) Medical statements or medical reports received in the
Secretary of State's Office shall be confidential. No
confidential information may be open to public inspection or
the contents disclosed to anyone, except officers and employees
of the Secretary who have a need to know the information

HB3831 - 80 - LRB096 11651 HLH 22226 b
contained in the medical reports and the Driver License Medical
Advisory Board, unless so directed by an order of a court of
competent jurisdiction.
(k) All fees collected under this Section shall be paid
into the Road Fund of the State Treasury, except that (i) for
fees collected before October 1, 2003, $3 of the $6 fee for a
driver's record shall be paid into the Secretary of State
Special Services Fund, (ii) for fees collected on and after
October 1, 2003, of the $12 fee for a driver's record, $3 shall
be paid into the Secretary of State Special Services Fund and
$6 shall be paid into the General Revenue Fund, and (iii) for
fees collected on and after October 1, 2003, 50% of the amounts
collected pursuant to subsection (b) shall be paid into the
General Revenue Fund.
(l) (Blank).
(m) Notations of accident involvement that may be disclosed
under this Section shall not include notations relating to
damage to a vehicle or other property being transported by a
tow truck. This information shall remain confidential,
provided that nothing in this subsection (m) shall limit
disclosure of any notification of accident involvement to any
law enforcement agency or official.
(n) Requests made by the news media for driver's license,
vehicle, or title registration information may be furnished
without charge or at a reduced charge, as determined by the
Secretary, when the specific purpose for requesting the

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documents is deemed to be in the public interest. Waiver or
reduction of the fee is in the public interest if the principal
purpose of the request is to access and disseminate information
regarding the health, safety, and welfare or the legal rights
of the general public and is not for the principal purpose of
gaining a personal or commercial benefit. The information
provided pursuant to this subsection shall not contain
personally identifying information unless the information is
to be used for one of the purposes identified in subsection
(f-5) of this Section.
(o) The redisclosure of personally identifying information
obtained pursuant to this Section is prohibited, except to the
extent necessary to effectuate the purpose for which the
original disclosure of the information was permitted.
(p) The Secretary of State is empowered to adopt rules to
effectuate this Section.
(Source: P.A. 94-56, eff. 6-17-05; 95-201, eff. 1-1-08; 95-287,
eff. 1-1-08; 95-331, eff. 8-21-07; 95-613, eff. 9-11-07;
95-876, eff. 8-21-08.)
Section 99. Effective date. This Act takes effect upon
becoming law.