2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 510/ - Coin-Operated Amusement Device and Redemption Machine Tax Act.

(35 ILCS 510/1) (from Ch. 120, par. 481b.1)
Sec. 1. 
There is imposed, on the privilege of operating every
coin-in-the-slot-operated amusement device, including a device operated
or operable by insertion of coins, tokens, chips or similar objects, in
this State which returns to the player thereof no money or property or
right to receive money or property, and on the privilege of operating in
this State a redemption machine as defined in Section 28-2 of the Criminal
Code of 2012, an annual privilege tax of $30 for each
device for a period beginning on or after August 1 of any year and
prior to August 1 of the succeeding year.
(Source: P.A. 97-1150, eff. 1-25-13.)
(35 ILCS 510/2) (from Ch. 120, par. 481b.2)
Sec. 2. 
		
		(a) Any person, firm, limited liability company, or corporation
which displays any device described in Section 1, to be played or operated by
the public at any place owned or leased by any such person, firm, limited
liability company, or corporation, shall before he displays such device, file
in the Office of the Department of Revenue
a form containing information regarding such device, setting
forth his name and address, with a brief description of the device to be
displayed and the premises where such device will be located, together
with such other relevant data as the Department of Revenue may require.
Such form shall be accompanied by the
required privilege tax for each device. Such privilege tax shall be paid to the
Department of Revenue
of the State of Illinois and all monies received by the Department of
Revenue under this Act shall be paid into the General Revenue Fund in
the State Treasury. The Department of Revenue shall supply and deliver
to the person, firm, limited liability company, or corporation which displays
any device described in Section 1, charges prepaid and without additional cost,
one privilege tax decal for each such device on which the
tax has been paid, stating
the year for which issued. Such privilege tax decal shall
thereupon be securely affixed
to such device.
(b) If an amount of tax, penalty, or interest has
been paid in error to the Department, the taxpayer may file a claim for credit
or refund with the Department.  If it is determined that the Department must
issue a credit or refund under this Act, the Department may first apply the
amount of the credit or refund due against any amount of tax, penalty, or
interest due under this Act from the taxpayer entitled to the credit or refund.
 If proceedings are pending to determine if any tax, penalty, or interest is
due under this Act from the taxpayer, the Department may withhold issuance of
the credit or refund pending the final disposition of those proceedings and may
apply that credit or refund against any amount determined to be due to the
Department as a result of those proceedings.  The balance, if any, of the
credit or refund shall be paid to the taxpayer.
If no tax, penalty, or interest is due and no proceedings are pending to
determine whether the taxpayer is indebted to the Department for tax, penalty,
or interest, the credit memorandum or refund shall be issued to the taxpayer;
or, the credit memorandum may be assigned by the taxpayer, subject to
reasonable rules of the Department, to any other person who is subject to this
Act, and the amount of the credit memorandum by the Department against any tax,
penalty, or interest due or to become due under this Act from the assignee.
For any claim for credit or refund filed with the Department on or after
each July 1, no amount erroneously paid more than 3 years before that July 1,
shall be credited or refunded.
A claim for credit or refund shall be filed on a form provided by the
Department.  As soon as practicable after any claim for credit or refund is
filed, the Department shall determine the amount of credit or refund to which
the claimant is entitled and shall notify the claimant of that determination.
A claim for credit or refund shall be filed with the Department on the date
it is received by the Department.  Upon receipt of any claim for credit or
refund filed under this Section, an officer or employee of the Department,
authorized by the Director of Revenue to acknowledge receipt of such claims on
behalf of the Department, shall deliver or mail to the claimant or his duly
authorized agent, a written receipt, acknowledging that the claim has been
filed with the Department, describing the claim in sufficient detail to
identify it, and stating the date on which the claim was received by the
Department.  The written receipt shall be prima facie evidence that the
Department received the claim described in the receipt and shall be prima facie
evidence of the date when such claim was received by the Department.  In the
absence of a written receipt, the records of the Department as to whether a
claim was received, or when the claim was received by the Department, shall be
deemed to be prima facie correct in the event of any dispute between the
claimant, or his legal representative, and the Department on these issues.
Any credit or refund that is allowed under this Article shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
If the Department determines that the claimant is entitled to a refund, the
refund shall be made only from an appropriation to the Department for that
purpose.  If the amount appropriated is insufficient to pay claimants electing
to
receive a cash refund, the Department by rule or regulation shall first provide
for the payment of refunds in hardship cases as defined by the Department.
(Source: P.A. 93-32, eff. 7-1-03.)
(35 ILCS 510/2a)
Sec. 2a. 
		Sunset of exemptions, credits, and deductions. 
		The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date.  A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter.  If a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(Source: P.A. 88-660, eff. 9-16-94.)
(35 ILCS 510/3) (from Ch. 120, par. 481b.3)
Sec. 3. Transfer of decals; affixing decals.
(1) All privilege tax decals herein provided for
shall be transferable from
one device to another device. Any such transfer from one device to another
shall be reported to the Department of Revenue on forms prescribed by such
Department.  All privilege tax decals issued hereunder shall
expire on July 31
following issuance.
(2) All privilege tax decals must be securely affixed to the device. A decal that is attached to a device behind a transparent plate or covering that is screwed, bolted, or otherwise securely fastened to the device is deemed to be securely affixed for the purposes of this Section.
(Source: P.A. 93-32, eff. 7-1-03; 94-742, eff. 5-8-06.)
(35 ILCS 510/4) (from Ch. 120, par. 481b.4)
Sec. 4. 
		
		The Department of Revenue hereby is authorized to make, promulgate
and enforce reasonable rules and regulations relating to the administration
and enforcement of this Act.
(Source: Laws 1953, p. 956.)
(35 ILCS 510/4a) (from Ch. 120, par. 481b.4a)
Sec. 4a. 
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph (b) of Section
5-10 of the Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2) subparagraph (a)2 of
Section 5-10 of the Illinois Administrative Procedure Act does not apply to
forms established by the Department for use under this Act, and (3) the
provisions of Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not applicable to the
Department under this Act to the extent Section 10-45 applies to hearings not otherwise subject to the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 510/4b) (from Ch. 120, par. 481b.4b)
Sec. 4b. 
		
		The Department of Revenue is hereby authorized to implement a
program whereby the privilege tax decals required by and the
taxes imposed by this Act
may be distributed and collected on behalf of the Department by State or
national banks and by State or federal savings and loan associations.  The
Department shall promulgate such rules and regulations as are reasonable
and necessary to establish the system of collection of taxes and
distribution of privilege tax decals authorized by this
Section.  Such rules and
regulations shall provide for the licensing of such financial institutions,
specification of information to be disclosed in an application therefor and
the imposition of a license fee not in excess of $100 annually.
(Source: P.A. 93-32, eff. 7-1-03.)
(35 ILCS 510/5) (from Ch. 120, par. 481b.5)
Sec. 5. 
		
		On every device found to have been displayed without the tax
imposed by this Act having been paid, the tax otherwise payable shall be
increased by 30% as a penalty.
(Source: P.A. 83-1428.)
(35 ILCS 510/6) (from Ch. 120, par. 481b.6)
Sec. 6. 
		
		The Department of Revenue is hereby empowered and authorized in the
name of the People of the State of Illinois in a suit or suits in any court
of competent jurisdiction to enforce the collection of any unpaid
tax, fines or penalties provided for in this Act.
(Source: P.A. 93-32, eff. 7-1-03.)
(35 ILCS 510/7) (from Ch. 120, par. 481b.7)
Sec. 7. 
		
		The right to tax the games or devices described in this Act
is not exclusive with the State of Illinois, but municipalities of the
State of Illinois shall have the right to impose taxes or license fees
thereon and to regulate or control the operation of the same within such
municipalities as provided in Section 11-55-1 of the Illinois Municipal
Code and counties of the State of Illinois shall have the right to impose
taxes or license fees thereon in unincorporated territory and to regulate
or control the operation of the same within such territory as provided in
Section 5-1076 of the Counties Code.
(Source: P.A. 86-1475.)
(35 ILCS 510/8) (from Ch. 120, par. 481b.8)
Sec. 8. 
		
		Any person operating or displaying any device described in this Act
in such manner that it could be played by the public without the tax imposed by
this Act having first been paid shall be guilty of a Class C misdemeanor. The
use or operation for other than amusement purposes of any device taxed as in
this Act provided shall be a Class C misdemeanor.
(Source: P.A. 83-1428.)
(35 ILCS 510/9) (from Ch. 120, par. 481b.9)
Sec. 9. 
		(Repealed).
(Source: Laws 1953, p. 956.  Repealed by P.A. 93-32, eff. 7-1-03.)
(35 ILCS 510/10) (from Ch. 120, par. 481b.10)
Sec. 10. 
All final administrative decisions of the Department of Revenue
under any of the provisions of this Act shall be subject to judicial
review pursuant to the provisions of the Administrative Review Law or the Illinois Independent Tax Tribunal Act of 2012, as applicable, and any amendment
and modifications thereof, and
the rules adopted relative thereto.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 510/11) (from Ch. 120, par. 481b.11)
Sec. 11. 
		
		This Act shall not apply to coin-in-the-slot-operated devices
maintained by any public utility for furnishing service of any public
utility, nor to any device which is designed and used strictly as a vendor
of merchandise or service and which is not an amusement device.
(Source: Laws 1963, p. 1549.)
(35 ILCS 510/12) (from Ch. 120, par. 481b.12)
Sec. 12. 
		
		If a court of competent jurisdiction shall adjudge to be invalid
or unconstitutional any clause, sentence, paragraph or part of this Act,
such judgment shall not affect, impair, invalidate or nullify the
remainder of this Act, but the effect thereof shall be confined to the
clause, sentence, paragraph or part of this Act so adjudged to be invalid
or unconstitutional.
(Source: P.A. 84-1308.)
(35 ILCS 510/13) (from Ch. 120, par. 481b.13)
Sec. 13. 
		
		Any duly authorized employee of the Department may, without a
search warrant, seize any coin-in-the-slot-operated amusement device which
is being displayed in his presence in a manner that violates any provision
of this Act. Such amusement device so seized shall be subject to
confiscation and forfeiture as hereinafter provided.
(Source: Laws 1963, p. 1549.)
(35 ILCS 510/14) (from Ch. 120, par. 481b.14)
Sec. 14. 
After seizing any coin-in-the-slot-operated amusement device, as
provided in Section 13 of this Act, the Department shall hold a hearing
in the county where such amusement device was seized and shall determine
whether such amusement device was being displayed in a manner which
violates any provision of this Act.
The Department shall give not less than 7 days' notice of the time and
place of such hearing to the owner of such amusement device if he is known,
and also to the person in whose possession the amusement device so taken
was found, if such person is known and if such person in possession is not
the owner of said amusement device.
In case neither the owner nor the person in possession of such amusement
device is known, the Department shall cause publication of the time and
place of such hearing to be made at least once in each week for 3 weeks
successively in a newspaper of general circulation in the county where such
hearing is to be held.
If, as the result of such hearing, the Department shall determine that
the amusement device seized was, at the time of seizure, being displayed in
a manner which violates this Act, the Department shall enter an order
declaring such amusement device confiscated and forfeited to the State, and
to be sold by the Department in the manner provided for hereinafter in this
Section.  The Department shall give notice of such order to the owner of
such amusement device if he is known, and also to the person in whose
possession the amusement device so taken was found, if such person is known
and if such person in possession is not the owner of such amusement device.
In case neither the owner nor the person in possession of such amusement
device is known, the Department shall cause publication of such order to be
made at least once in each week for 3 weeks successively in a newspaper of
general circulation in the county where such hearing was held.
The person from whom such amusement device has been seized (or the owner
of such device if that is a different person) may redeem and reclaim such
device by paying, to the Department, within 30 days after the Department's
order of confiscation and forfeiture becomes final, an amount equal to
twice the annual tax applicable to such amusement device, plus a penalty of
10%.
When any amusement device shall have been declared forfeited to the
State by the Department, as provided in this Section, and when all
proceedings for the judicial review of the Department's decision have
terminated, the Department shall (if such amusement device is not redeemed
and reclaimed within the time and in the manner provided for in this
Section), to the extent that its decision is sustained on review, sell such
amusement device for the best price obtainable and shall forthwith pay over
the proceeds of such sale to the State Treasurer; provided, however, that
if the value of the property to be sold at any one time shall be $500.00 or
more, such property shall be sold only to the highest and best bidder on
such terms and conditions and on open competitive bidding after public
advertisement, in such manner and for such terms as the Department, by
rule, may prescribe.
If no complaint for review, as provided in Section 10 of this Act, has
been filed within the time required by law,
and if such amusement device is not redeemed and reclaimed within the time
and in the manner provided for in this Section, the Department shall
proceed to sell said property for the best price obtainable and shall
forthwith pay over the proceeds of such sale to the State Treasurer;
provided, however, that if the value of the property to be sold at any one
time shall be $500.00 or more, such property shall be sold only to the
highest and best bidder on such terms and conditions and on open
competitive bidding after public advertisement, in such manner and for such
terms as the Department, by rule, may prescribe.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 510/15) (from Ch. 120, par. 481b.15)
Sec. 15. 
		
		Whenever any peace officer of the State or any duly authorized
officer or employee of the Department shall have reason to believe that any
violation of this Act has occurred and that the person so violating the Act
has in his, her or its possession any amusement device which is being
displayed in a manner which violates this Act, he may file or cause to be
filed his complaint in writing, verified by affidavit, with any court
within whose jurisdiction the premises to be searched are situated, stating
the facts upon which such belief is founded, the premises to be searched,
and the property to be seized, and procure a search warrant and execute the
same.
Upon the execution of such search warrant, the peace officer, or officer
or employee of the Department, executing such search warrant shall make due
return thereof to the court issuing the same, together with an inventory of
the property taken thereunder. The court shall thereupon issue process
against the owner of such property if he is known; otherwise, such process
shall be issued against the person in whose possession the property so
taken is found, if such person is known.
In case of inability to serve such process upon the owner or the person
in possession of the property at the time of its seizure, as hereinbefore
provided, notice of the proceedings before the court shall be given as
required by the statutes of the State governing cases of attachment.
Upon the return of the process duly served or upon the posting or
publishing of notice made, as hereinabove provided, the court or jury, if a
jury shall be demanded, shall proceed to determine whether or not such
property so seized was displayed in violation of this Act. In case of a
finding that the amusement device seized was, at the time of seizure, being
displayed in violation of this Act, judgment shall be entered confiscating
and forfeiting the property to the State and ordering its delivery to the
Department, and in addition thereto, the court shall have power to tax and
assess the costs of the proceedings.
The person from whom such amusement device has been seized (or the owner
of such device if that is a different person) may redeem and reclaim such
device by paying, to the Department, within 30 days after the order of
confiscation and forfeiture becomes final, an amount equal to twice the
annual tax applicable to such amusement device, plus a penalty of 10%.
When any amusement device shall have been declared forfeited to the
State by any court, and when such confiscated and forfeited amusement
device shall have been delivered to the Department, and if such device is
not redeemed and reclaimed within the time and in the manner provided for
in this Section, the Department shall sell such amusement device for the
best price obtainable and shall forthwith pay over the proceeds of such
sale to the State Treasurer; provided, however, that if the value of the
property to be sold at any one time shall be $500.00 or more, such property
shall be sold only to the highest and best bidder on such terms and
conditions and on open competitive bidding after public advertisement, in
such manner and for such terms as the Department, by rule, may prescribe.
(Source: Laws 1965, p. 3716.)
(35 ILCS 510/16) (from Ch. 120, par. 481b.16)
Sec. 16. 
		
		This Act may be cited as the Coin-Operated Amusement Device and Redemption Machine Tax Act.
(Source: P.A. 87-855.)