103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3725

 

Introduced 2/9/2024, by Sen. Donald P. DeWitte

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-5
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-5
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-5
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2024, certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Provides that certain amounts shall be transferred from the General Revenue Fund to certain local tax funds. Effective immediately.


LRB103 38226 HLH 68360 b

 

 

A BILL FOR

 

SB3725LRB103 38226 HLH 68360 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Sections
53-5, 3-10, and 9 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Except as otherwise provided in this Act, personal
12property purchased by a governmental body, by a corporation,
13society, association, foundation, or institution organized and
14operated exclusively for charitable, religious, or educational
15purposes, or by a not-for-profit corporation, society,
16association, foundation, institution, or organization that has
17no compensated officers or employees and that is organized and
18operated primarily for the recreation of persons 55 years of
19age or older. A limited liability company may qualify for the
20exemption under this paragraph only if the limited liability
21company is organized and operated exclusively for educational
22purposes. On and after July 1, 1987, however, no entity
23otherwise eligible for this exemption shall make tax-free
24purchases unless it has an active exemption identification
25number issued by the Department.
26    (5) Until July 1, 2003, a passenger car that is a

 

 

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1replacement vehicle to the extent that the purchase price of
2the car is subject to the Replacement Vehicle Tax.
3    (6) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new
6and used, and including that manufactured on special order,
7certified by the purchaser to be used primarily for graphic
8arts production, and including machinery and equipment
9purchased for lease. Equipment includes chemicals or chemicals
10acting as catalysts but only if the chemicals or chemicals
11acting as catalysts effect a direct and immediate change upon
12a graphic arts product. Beginning on July 1, 2017, graphic
13arts machinery and equipment is included in the manufacturing
14and assembling machinery and equipment exemption under
15paragraph (18).
16    (7) Farm chemicals.
17    (8) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (9) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24    (10) A motor vehicle that is used for automobile renting,
25as defined in the Automobile Renting Occupation and Use Tax
26Act.

 

 

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1    (11) Farm machinery and equipment, both new and used,
2including that manufactured on special order, certified by the
3purchaser to be used primarily for production agriculture or
4State or federal agricultural programs, including individual
5replacement parts for the machinery and equipment, including
6machinery and equipment purchased for lease, and including
7implements of husbandry defined in Section 1-130 of the
8Illinois Vehicle Code, farm machinery and agricultural
9chemical and fertilizer spreaders, and nurse wagons required
10to be registered under Section 3-809 of the Illinois Vehicle
11Code, but excluding other motor vehicles required to be
12registered under the Illinois Vehicle Code. Horticultural
13polyhouses or hoop houses used for propagating, growing, or
14overwintering plants shall be considered farm machinery and
15equipment under this item (11). Agricultural chemical tender
16tanks and dry boxes shall include units sold separately from a
17motor vehicle required to be licensed and units sold mounted
18on a motor vehicle required to be licensed if the selling price
19of the tender is separately stated.
20    Farm machinery and equipment shall include precision
21farming equipment that is installed or purchased to be
22installed on farm machinery and equipment, including, but not
23limited to, tractors, harvesters, sprayers, planters, seeders,
24or spreaders. Precision farming equipment includes, but is not
25limited to, soil testing sensors, computers, monitors,
26software, global positioning and mapping systems, and other

 

 

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1such equipment.
2    Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals.
9    Beginning on January 1, 2024, farm machinery and equipment
10also includes electrical power generation equipment used
11primarily for production agriculture.
12    This item (11) is exempt from the provisions of Section
133-90.
14    (12) Until June 30, 2013, fuel and petroleum products sold
15to or used by an air common carrier, certified by the carrier
16to be used for consumption, shipment, or storage in the
17conduct of its business as an air common carrier, for a flight
18destined for or returning from a location or locations outside
19the United States without regard to previous or subsequent
20domestic stopovers.
21    Beginning July 1, 2013, fuel and petroleum products sold
22to or used by an air carrier, certified by the carrier to be
23used for consumption, shipment, or storage in the conduct of
24its business as an air common carrier, for a flight that (i) is
25engaged in foreign trade or is engaged in trade between the
26United States and any of its possessions and (ii) transports

 

 

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1at least one individual or package for hire from the city of
2origination to the city of final destination on the same
3aircraft, without regard to a change in the flight number of
4that aircraft.
5    (13) Proceeds of mandatory service charges separately
6stated on customers' bills for the purchase and consumption of
7food and beverages purchased at retail from a retailer, to the
8extent that the proceeds of the service charge are in fact
9turned over as tips or as a substitute for tips to the
10employees who participate directly in preparing, serving,
11hosting or cleaning up the food or beverage function with
12respect to which the service charge is imposed.
13    (14) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of
15rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16pipe and tubular goods, including casing and drill strings,
17(iii) pumps and pump-jack units, (iv) storage tanks and flow
18lines, (v) any individual replacement part for oil field
19exploration, drilling, and production equipment, and (vi)
20machinery and equipment purchased for lease; but excluding
21motor vehicles required to be registered under the Illinois
22Vehicle Code.
23    (15) Photoprocessing machinery and equipment, including
24repair and replacement parts, both new and used, including
25that manufactured on special order, certified by the purchaser
26to be used primarily for photoprocessing, and including

 

 

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1photoprocessing machinery and equipment purchased for lease.
2    (16) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13    (17) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19    (18) Manufacturing and assembling machinery and equipment
20used primarily in the process of manufacturing or assembling
21tangible personal property for wholesale or retail sale or
22lease, whether that sale or lease is made directly by the
23manufacturer or by some other person, whether the materials
24used in the process are owned by the manufacturer or some other
25person, or whether that sale or lease is made apart from or as
26an incident to the seller's engaging in the service occupation

 

 

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1of producing machines, tools, dies, jigs, patterns, gauges, or
2other similar items of no commercial value on special order
3for a particular purchaser. The exemption provided by this
4paragraph (18) includes production related tangible personal
5property, as defined in Section 3-50, purchased on or after
6July 1, 2019. The exemption provided by this paragraph (18)
7does not include machinery and equipment used in (i) the
8generation of electricity for wholesale or retail sale; (ii)
9the generation or treatment of natural or artificial gas for
10wholesale or retail sale that is delivered to customers
11through pipes, pipelines, or mains; or (iii) the treatment of
12water for wholesale or retail sale that is delivered to
13customers through pipes, pipelines, or mains. The provisions
14of Public Act 98-583 are declaratory of existing law as to the
15meaning and scope of this exemption. Beginning on July 1,
162017, the exemption provided by this paragraph (18) includes,
17but is not limited to, graphic arts machinery and equipment,
18as defined in paragraph (6) of this Section.
19    (19) Personal property delivered to a purchaser or
20purchaser's donee inside Illinois when the purchase order for
21that personal property was received by a florist located
22outside Illinois who has a florist located inside Illinois
23deliver the personal property.
24    (20) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (21) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (21) is exempt from the
6provisions of Section 3-90, and the exemption provided for
7under this item (21) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 for such taxes paid during the period
10beginning May 30, 2000 and ending on January 1, 2008.
11    (22) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other non-exempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Service Use Tax Act, as
23the case may be, based on the fair market value of the property
24at the time the non-qualifying use occurs. No lessor shall
25collect or attempt to collect an amount (however designated)
26that purports to reimburse that lessor for the tax imposed by

 

 

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1this Act or the Service Use Tax Act, as the case may be, if the
2tax has not been paid by the lessor. If a lessor improperly
3collects any such amount from the lessee, the lessee shall
4have a legal right to claim a refund of that amount from the
5lessor. If, however, that amount is not refunded to the lessee
6for any reason, the lessor is liable to pay that amount to the
7Department.
8    (23) Personal property purchased by a lessor who leases
9the property, under a lease of one year or longer executed or
10in effect at the time the lessor would otherwise be subject to
11the tax imposed by this Act, to a governmental body that has
12been issued an active sales tax exemption identification
13number by the Department under Section 1g of the Retailers'
14Occupation Tax Act. If the property is leased in a manner that
15does not qualify for this exemption or used in any other
16non-exempt manner, the lessor shall be liable for the tax
17imposed under this Act or the Service Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the non-qualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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1for any reason, the lessor is liable to pay that amount to the
2Department.
3    (24) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is donated
6for disaster relief to be used in a State or federally declared
7disaster area in Illinois or bordering Illinois by a
8manufacturer or retailer that is registered in this State to a
9corporation, society, association, foundation, or institution
10that has been issued a sales tax exemption identification
11number by the Department that assists victims of the disaster
12who reside within the declared disaster area.
13    (25) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is used in
16the performance of infrastructure repairs in this State,
17including, but not limited to, municipal roads and streets,
18access roads, bridges, sidewalks, waste disposal systems,
19water and sewer line extensions, water distribution and
20purification facilities, storm water drainage and retention
21facilities, and sewage treatment facilities, resulting from a
22State or federally declared disaster in Illinois or bordering
23Illinois when such repairs are initiated on facilities located
24in the declared disaster area within 6 months after the
25disaster.
26    (26) Beginning July 1, 1999, game or game birds purchased

 

 

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1at a "game breeding and hunting preserve area" as that term is
2used in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 3-90.
4    (27) A motor vehicle, as that term is defined in Section
51-146 of the Illinois Vehicle Code, that is donated to a
6corporation, limited liability company, society, association,
7foundation, or institution that is determined by the
8Department to be organized and operated exclusively for
9educational purposes. For purposes of this exemption, "a
10corporation, limited liability company, society, association,
11foundation, or institution organized and operated exclusively
12for educational purposes" means all tax-supported public
13schools, private schools that offer systematic instruction in
14useful branches of learning by methods common to public
15schools and that compare favorably in their scope and
16intensity with the course of study presented in tax-supported
17schools, and vocational or technical schools or institutes
18organized and operated exclusively to provide a course of
19study of not less than 6 weeks duration and designed to prepare
20individuals to follow a trade or to pursue a manual,
21technical, mechanical, industrial, business, or commercial
22occupation.
23    (28) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-90.
11    (29) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and
14other items, and replacement parts for these machines.
15Beginning January 1, 2002 and through June 30, 2003, machines
16and parts for machines used in commercial, coin-operated
17amusement and vending business if a use or occupation tax is
18paid on the gross receipts derived from the use of the
19commercial, coin-operated amusement and vending machines. This
20paragraph is exempt from the provisions of Section 3-90.
21    (30) Beginning January 1, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24soft drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8    (31) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), computers and communications equipment
10utilized for any hospital purpose and equipment used in the
11diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other nonexempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Service Use Tax Act, as
21the case may be, based on the fair market value of the property
22at the time the nonqualifying use occurs. No lessor shall
23collect or attempt to collect an amount (however designated)
24that purports to reimburse that lessor for the tax imposed by
25this Act or the Service Use Tax Act, as the case may be, if the
26tax has not been paid by the lessor. If a lessor improperly

 

 

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1collects any such amount from the lessee, the lessee shall
2have a legal right to claim a refund of that amount from the
3lessor. If, however, that amount is not refunded to the lessee
4for any reason, the lessor is liable to pay that amount to the
5Department. This paragraph is exempt from the provisions of
6Section 3-90.
7    (32) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227), personal property purchased by a lessor
9who leases the property, under a lease of one year or longer
10executed or in effect at the time the lessor would otherwise be
11subject to the tax imposed by this Act, to a governmental body
12that has been issued an active sales tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the property is leased
15in a manner that does not qualify for this exemption or used in
16any other nonexempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the nonqualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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1for any reason, the lessor is liable to pay that amount to the
2Department. This paragraph is exempt from the provisions of
3Section 3-90.
4    (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9July 1, 2004 and through June 30, 2005, the use in this State
10of motor vehicles of the second division: (i) with a gross
11vehicle weight rating in excess of 8,000 pounds; (ii) that are
12subject to the commercial distribution fee imposed under
13Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14are primarily used for commercial purposes. Through June 30,
152005, this exemption applies to repair and replacement parts
16added after the initial purchase of such a motor vehicle if
17that motor vehicle is used in a manner that would qualify for
18the rolling stock exemption otherwise provided for in this
19Act. For purposes of this paragraph, the term "used for
20commercial purposes" means the transportation of persons or
21property in furtherance of any commercial or industrial
22enterprise, whether for-hire or not.
23    (34) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued
2under Title IV of the Environmental Protection Act. This
3paragraph is exempt from the provisions of Section 3-90.
4    (35) Beginning January 1, 2010 and continuing through
5December 31, 2029, materials, parts, equipment, components,
6and furnishings incorporated into or upon an aircraft as part
7of the modification, refurbishment, completion, replacement,
8repair, or maintenance of the aircraft. This exemption
9includes consumable supplies used in the modification,
10refurbishment, completion, replacement, repair, and
11maintenance of aircraft. However, until January 1, 2024, this
12exemption excludes any materials, parts, equipment,
13components, and consumable supplies used in the modification,
14replacement, repair, and maintenance of aircraft engines or
15power plants, whether such engines or power plants are
16installed or uninstalled upon any such aircraft. "Consumable
17supplies" include, but are not limited to, adhesive, tape,
18sandpaper, general purpose lubricants, cleaning solution,
19latex gloves, and protective films.
20    Beginning January 1, 2010 and continuing through December
2131, 2023, this exemption applies only to the use of qualifying
22tangible personal property by persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1operations in accordance with Part 145 of the Federal Aviation
2Regulations. From January 1, 2024 through December 31, 2029,
3this exemption applies only to the use of qualifying tangible
4personal property by: (A) persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations; and (B) persons who engage in the modification,
11replacement, repair, and maintenance of aircraft engines or
12power plants without regard to whether or not those persons
13meet the qualifications of item (A).
14    The exemption does not include aircraft operated by a
15commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part
17129 of the Federal Aviation Regulations. The changes made to
18this paragraph (35) by Public Act 98-534 are declarative of
19existing law. It is the intent of the General Assembly that the
20exemption under this paragraph (35) applies continuously from
21January 1, 2010 through December 31, 2024; however, no claim
22for credit or refund is allowed for taxes paid as a result of
23the disallowance of this exemption on or after January 1, 2015
24and prior to February 5, 2020 (the effective date of Public Act
25101-629).
26    (36) Tangible personal property purchased by a

 

 

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt
9instruments issued by the public-facilities corporation in
10connection with the development of the municipal convention
11hall. This exemption includes existing public-facilities
12corporations as provided in Section 11-65-25 of the Illinois
13Municipal Code. This paragraph is exempt from the provisions
14of Section 3-90.
15    (37) Beginning January 1, 2017 and through December 31,
162026, menstrual pads, tampons, and menstrual cups.
17    (38) Merchandise that is subject to the Rental Purchase
18Agreement Occupation and Use Tax. The purchaser must certify
19that the item is purchased to be rented subject to a
20rental-purchase rental purchase agreement, as defined in the
21Rental-Purchase Rental Purchase Agreement Act, and provide
22proof of registration under the Rental Purchase Agreement
23Occupation and Use Tax Act. This paragraph is exempt from the
24provisions of Section 3-90.
25    (39) Tangible personal property purchased by a purchaser
26who is exempt from the tax imposed by this Act by operation of

 

 

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1federal law. This paragraph is exempt from the provisions of
2Section 3-90.
3    (40) Qualified tangible personal property used in the
4construction or operation of a data center that has been
5granted a certificate of exemption by the Department of
6Commerce and Economic Opportunity, whether that tangible
7personal property is purchased by the owner, operator, or
8tenant of the data center or by a contractor or subcontractor
9of the owner, operator, or tenant. Data centers that would
10have qualified for a certificate of exemption prior to January
111, 2020 had Public Act 101-31 been in effect may apply for and
12obtain an exemption for subsequent purchases of computer
13equipment or enabling software purchased or leased to upgrade,
14supplement, or replace computer equipment or enabling software
15purchased or leased in the original investment that would have
16qualified.
17    The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (40) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22    For the purposes of this item (40):
23        "Data center" means a building or a series of
24    buildings rehabilitated or constructed to house working
25    servers in one physical location or multiple sites within
26    the State of Illinois.

 

 

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1        "Qualified tangible personal property" means:
2    electrical systems and equipment; climate control and
3    chilling equipment and systems; mechanical systems and
4    equipment; monitoring and secure systems; emergency
5    generators; hardware; computers; servers; data storage
6    devices; network connectivity equipment; racks; cabinets;
7    telecommunications cabling infrastructure; raised floor
8    systems; peripheral components or systems; software;
9    mechanical, electrical, or plumbing systems; battery
10    systems; cooling systems and towers; temperature control
11    systems; other cabling; and other data center
12    infrastructure equipment and systems necessary to operate
13    qualified tangible personal property, including fixtures;
14    and component parts of any of the foregoing, including
15    installation, maintenance, repair, refurbishment, and
16    replacement of qualified tangible personal property to
17    generate, transform, transmit, distribute, or manage
18    electricity necessary to operate qualified tangible
19    personal property; and all other tangible personal
20    property that is essential to the operations of a computer
21    data center. The term "qualified tangible personal
22    property" also includes building materials physically
23    incorporated into in to the qualifying data center. To
24    document the exemption allowed under this Section, the
25    retailer must obtain from the purchaser a copy of the
26    certificate of eligibility issued by the Department of

 

 

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1    Commerce and Economic Opportunity.
2    This item (40) is exempt from the provisions of Section
33-90.
4    (41) Beginning July 1, 2022, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (41) is exempt from the provisions of Section 3-90. As
7used in this item (41):
8        "Breast pump" means an electrically controlled or
9    manually controlled pump device designed or marketed to be
10    used to express milk from a human breast during lactation,
11    including the pump device and any battery, AC adapter, or
12    other power supply unit that is used to power the pump
13    device and is packaged and sold with the pump device at the
14    time of sale.
15        "Breast pump collection and storage supplies" means
16    items of tangible personal property designed or marketed
17    to be used in conjunction with a breast pump to collect
18    milk expressed from a human breast and to store collected
19    milk until it is ready for consumption.
20        "Breast pump collection and storage supplies"
21    includes, but is not limited to: breast shields and breast
22    shield connectors; breast pump tubes and tubing adapters;
23    breast pump valves and membranes; backflow protectors and
24    backflow protector adaptors; bottles and bottle caps
25    specific to the operation of the breast pump; and breast
26    milk storage bags.

 

 

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1        "Breast pump collection and storage supplies" does not
2    include: (1) bottles and bottle caps not specific to the
3    operation of the breast pump; (2) breast pump travel bags
4    and other similar carrying accessories, including ice
5    packs, labels, and other similar products; (3) breast pump
6    cleaning supplies; (4) nursing bras, bra pads, breast
7    shells, and other similar products; and (5) creams,
8    ointments, and other similar products that relieve
9    breastfeeding-related symptoms or conditions of the
10    breasts or nipples, unless sold as part of a breast pump
11    kit that is pre-packaged by the breast pump manufacturer
12    or distributor.
13        "Breast pump kit" means a kit that: (1) contains no
14    more than a breast pump, breast pump collection and
15    storage supplies, a rechargeable battery for operating the
16    breast pump, a breastmilk cooler, bottle stands, ice
17    packs, and a breast pump carrying case; and (2) is
18    pre-packaged as a breast pump kit by the breast pump
19    manufacturer or distributor.
20    (42) Tangible personal property sold by or on behalf of
21the State Treasurer pursuant to the Revised Uniform Unclaimed
22Property Act. This item (42) is exempt from the provisions of
23Section 3-90.
24    (43) Beginning on January 1, 2024, tangible personal
25property purchased by an active duty member of the armed
26forces of the United States who presents valid military

 

 

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1identification and purchases the property using a form of
2payment where the federal government is the payor. The member
3of the armed forces must complete, at the point of sale, a form
4prescribed by the Department of Revenue documenting that the
5transaction is eligible for the exemption under this
6paragraph. Retailers must keep the form as documentation of
7the exemption in their records for a period of not less than 6
8years. "Armed forces of the United States" means the United
9States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10This paragraph is exempt from the provisions of Section 3-90.
11    (44) Beginning on July 1, 2024, as defined in Section
123-10, food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14food consisting of or infused with adult use cannabis, soft
15drinks, and food that has been prepared for immediate
16consumption). This item (44) is exempt from the provisions of
17Section 3-90.
18    (45) Beginning on July 1, 2024, the following items, as
19defined in Section 3-10:
20        (A) prescription and nonprescription medicines, drugs,
21    and medical appliances;
22        (B) products classified as Class III medical devices
23    by the United States Food and Drug Administration that are
24    used for cancer treatment pursuant to a prescription, as
25    well as any accessories and components related to those
26    devices;

 

 

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1        (C) modifications to a motor vehicle for the purpose
2    of rendering it usable by a person with a disability; and
3        (D) insulin, blood sugar testing materials, syringes,
4    and needles used by human diabetics.
5    This item (45) is exempt from the provisions of Section
63-90.
7(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
8Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
9eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
10Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
11eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
12revised 12-12-23.)
 
13    (35 ILCS 105/3-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16either the selling price or the fair market value, if any, of
17the tangible personal property. In all cases where property
18functionally used or consumed is the same as the property that
19was purchased at retail, then the tax is imposed on the selling
20price of the property. In all cases where property
21functionally used or consumed is a by-product or waste product
22that has been refined, manufactured, or produced from property
23purchased at retail, then the tax is imposed on the lower of
24the fair market value, if any, of the specific property so used
25in this State or on the selling price of the property purchased

 

 

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1at retail. For purposes of this Section "fair market value"
2means the price at which property would change hands between a
3willing buyer and a willing seller, neither being under any
4compulsion to buy or sell and both having reasonable knowledge
5of the relevant facts. The fair market value shall be
6established by Illinois sales by the taxpayer of the same
7property as that functionally used or consumed, or if there
8are no such sales by the taxpayer, then comparable sales or
9purchases of property of like kind and character in Illinois.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    Beginning on August 6, 2010 through August 15, 2010, and
15beginning again on August 5, 2022 through August 14, 2022,
16with respect to sales tax holiday items as defined in Section
173-6 of this Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, the tax imposed by this Act
19applies to (i) 70% of the proceeds of sales made on or after
20January 1, 1990, and before July 1, 2003, (ii) 80% of the
21proceeds of sales made on or after July 1, 2003 and on or
22before July 1, 2017, (iii) 100% of the proceeds of sales made
23after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
24the proceeds of sales made on or after January 1, 2024 and on
25or before December 31, 2028, and (v) 100% of the proceeds of
26sales made after December 31, 2028. If, at any time, however,

 

 

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1the tax under this Act on sales of gasohol is imposed at the
2rate of 1.25%, then the tax imposed by this Act applies to 100%
3of the proceeds of sales of gasohol made during that time.
4    With respect to mid-range ethanol blends, the tax imposed
5by this Act applies to (i) 80% of the proceeds of sales made on
6or after January 1, 2024 and on or before December 31, 2028 and
7(ii) 100% of the proceeds of sales made thereafter. If, at any
8time, however, the tax under this Act on sales of mid-range
9ethanol blends is imposed at the rate of 1.25%, then the tax
10imposed by this Act applies to 100% of the proceeds of sales of
11mid-range ethanol blends made during that time.
12    With respect to majority blended ethanol fuel, the tax
13imposed by this Act does not apply to the proceeds of sales
14made on or after July 1, 2003 and on or before December 31,
152028 but applies to 100% of the proceeds of sales made
16thereafter.
17    With respect to biodiesel blends with no less than 1% and
18no more than 10% biodiesel, the tax imposed by this Act applies
19to (i) 80% of the proceeds of sales made on or after July 1,
202003 and on or before December 31, 2018 and (ii) 100% of the
21proceeds of sales made after December 31, 2018 and before
22January 1, 2024. On and after January 1, 2024 and on or before
23December 31, 2030, the taxation of biodiesel, renewable
24diesel, and biodiesel blends shall be as provided in Section
253-5.1. If, at any time, however, the tax under this Act on
26sales of biodiesel blends with no less than 1% and no more than

 

 

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110% biodiesel is imposed at the rate of 1.25%, then the tax
2imposed by this Act applies to 100% of the proceeds of sales of
3biodiesel blends with no less than 1% and no more than 10%
4biodiesel made during that time.
5    With respect to biodiesel and biodiesel blends with more
6than 10% but no more than 99% biodiesel, the tax imposed by
7this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2023. On and
9after January 1, 2024 and on or before December 31, 2030, the
10taxation of biodiesel, renewable diesel, and biodiesel blends
11shall be as provided in Section 3-5.1.
12    Until July 1, 2022 and from beginning again on July 1, 2023
13through June 30, 2024, with respect to food for human
14consumption that is to be consumed off the premises where it is
15sold (other than alcoholic beverages, food consisting of or
16infused with adult use cannabis, soft drinks, and food that
17has been prepared for immediate consumption), the tax is
18imposed at the rate of 1%. Beginning on July 1, 2022 and until
19July 1, 2023, with respect to food for human consumption that
20is to be consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption), the tax is imposed at the rate of 0%.
24    Through June 30, 2024, with With respect to prescription
25and nonprescription medicines, drugs, medical appliances,
26products classified as Class III medical devices by the United

 

 

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1States Food and Drug Administration that are used for cancer
2treatment pursuant to a prescription, as well as any
3accessories and components related to those devices,
4modifications to a motor vehicle for the purpose of rendering
5it usable by a person with a disability, and insulin, blood
6sugar testing materials, syringes, and needles used by human
7diabetics, the tax is imposed at the rate of 1%. For the
8purposes of this Section, until September 1, 2009: the term
9"soft drinks" means any complete, finished, ready-to-use,
10non-alcoholic drink, whether carbonated or not, including, but
11not limited to, soda water, cola, fruit juice, vegetable
12juice, carbonated water, and all other preparations commonly
13known as soft drinks of whatever kind or description that are
14contained in any closed or sealed bottle, can, carton, or
15container, regardless of size; but "soft drinks" does not
16include coffee, tea, non-carbonated water, infant formula,
17milk or milk products as defined in the Grade A Pasteurized
18Milk and Milk Products Act, or drinks containing 50% or more
19natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" does not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

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1provisions of this Act, "food for human consumption that is to
2be consumed off the premises where it is sold" includes all
3food sold through a vending machine, except soft drinks and
4food products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine. Beginning
6August 1, 2009, and notwithstanding any other provisions of
7this Act, "food for human consumption that is to be consumed
8off the premises where it is sold" includes all food sold
9through a vending machine, except soft drinks, candy, and food
10products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "food for human consumption that
14is to be consumed off the premises where it is sold" does not
15include candy. For purposes of this Section, "candy" means a
16preparation of sugar, honey, or other natural or artificial
17sweeteners in combination with chocolate, fruits, nuts or
18other ingredients or flavorings in the form of bars, drops, or
19pieces. "Candy" does not include any preparation that contains
20flour or requires refrigeration.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "nonprescription medicines and
23drugs" does not include grooming and hygiene products. For
24purposes of this Section, "grooming and hygiene products"
25includes, but is not limited to, soaps and cleaning solutions,
26shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

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1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 CFR 201.66. The "over-the-counter-drug"
7label includes:
8        (A) a "Drug Facts" panel; or
9        (B) a statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122), "prescription and nonprescription medicines and
14drugs" includes medical cannabis purchased from a registered
15dispensing organization under the Compassionate Use of Medical
16Cannabis Program Act.
17    As used in this Section, "adult use cannabis" means
18cannabis subject to tax under the Cannabis Cultivation
19Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
20and does not include cannabis subject to tax under the
21Compassionate Use of Medical Cannabis Program Act.
22    If the property that is purchased at retail from a
23retailer is acquired outside Illinois and used outside
24Illinois before being brought to Illinois for use here and is
25taxable under this Act, the "selling price" on which the tax is
26computed shall be reduced by an amount that represents a

 

 

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1reasonable allowance for depreciation for the period of prior
2out-of-state use.
3(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
4Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
560-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
64-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
 
7    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
8    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
9and trailers that are required to be registered with an agency
10of this State, each retailer required or authorized to collect
11the tax imposed by this Act shall pay to the Department the
12amount of such tax (except as otherwise provided) at the time
13when he is required to file his return for the period during
14which such tax was collected, less a discount of 2.1% prior to
15January 1, 1990, and 1.75% on and after January 1, 1990, or $5
16per calendar year, whichever is greater, which is allowed to
17reimburse the retailer for expenses incurred in collecting the
18tax, keeping records, preparing and filing returns, remitting
19the tax and supplying data to the Department on request. When
20determining the discount allowed under this Section, retailers
21shall include the amount of tax that would have been due at the
226.25% rate but for the 1.25% rate imposed on sales tax holiday
23items under Public Act 102-700. The discount under this
24Section is not allowed for the 1.25% portion of taxes paid on
25aviation fuel that is subject to the revenue use requirements

 

 

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1of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
2the discount allowed under this Section, retailers shall
3include the amount of tax that would have been due at the 1%
4rate but for the 0% rate imposed under Public Act 102-700. In
5the case of retailers who report and pay the tax on a
6transaction by transaction basis, as provided in this Section,
7such discount shall be taken with each such tax remittance
8instead of when such retailer files his periodic return. The
9discount allowed under this Section is allowed only for
10returns that are filed in the manner required by this Act. The
11Department may disallow the discount for retailers whose
12certificate of registration is revoked at the time the return
13is filed, but only if the Department's decision to revoke the
14certificate of registration has become final. A retailer need
15not remit that part of any tax collected by him to the extent
16that he is required to remit and does remit the tax imposed by
17the Retailers' Occupation Tax Act, with respect to the sale of
18the same property.
19    Where such tangible personal property is sold under a
20conditional sales contract, or under any other form of sale
21wherein the payment of the principal sum, or a part thereof, is
22extended beyond the close of the period for which the return is
23filed, the retailer, in collecting the tax (except as to motor
24vehicles, watercraft, aircraft, and trailers that are required
25to be registered with an agency of this State), may collect for
26each tax return period, only the tax applicable to that part of

 

 

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1the selling price actually received during such tax return
2period.
3    Except as provided in this Section, on or before the
4twentieth day of each calendar month, such retailer shall file
5a return for the preceding calendar month. Such return shall
6be filed on forms prescribed by the Department and shall
7furnish such information as the Department may reasonably
8require. The return shall include the gross receipts on food
9for human consumption that is to be consumed off the premises
10where it is sold (other than alcoholic beverages, food
11consisting of or infused with adult use cannabis, soft drinks,
12and food that has been prepared for immediate consumption)
13which were received during the preceding calendar month,
14quarter, or year, as appropriate, and upon which tax would
15have been due but for the 0% rate imposed under Public Act
16102-700. The return shall also include the amount of tax that
17would have been due on food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption) but for the 0% rate imposed under
22Public Act 102-700.
23    On and after January 1, 2018, except for returns required
24to be filed prior to January 1, 2023 for motor vehicles,
25watercraft, aircraft, and trailers that are required to be
26registered with an agency of this State, with respect to

 

 

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1retailers whose annual gross receipts average $20,000 or more,
2all returns required to be filed pursuant to this Act shall be
3filed electronically. On and after January 1, 2023, with
4respect to retailers whose annual gross receipts average
5$20,000 or more, all returns required to be filed pursuant to
6this Act, including, but not limited to, returns for motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State, shall be filed
9electronically. Retailers who demonstrate that they do not
10have access to the Internet or demonstrate hardship in filing
11electronically may petition the Department to waive the
12electronic filing requirement.
13    The Department may require returns to be filed on a
14quarterly basis. If so required, a return for each calendar
15quarter shall be filed on or before the twentieth day of the
16calendar month following the end of such calendar quarter. The
17taxpayer shall also file a return with the Department for each
18of the first two months of each calendar quarter, on or before
19the twentieth day of the following calendar month, stating:
20        1. The name of the seller;
21        2. The address of the principal place of business from
22    which he engages in the business of selling tangible
23    personal property at retail in this State;
24        3. The total amount of taxable receipts received by
25    him during the preceding calendar month from sales of
26    tangible personal property by him during such preceding

 

 

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1    calendar month, including receipts from charge and time
2    sales, but less all deductions allowed by law;
3        4. The amount of credit provided in Section 2d of this
4    Act;
5        5. The amount of tax due;
6        5-5. The signature of the taxpayer; and
7        6. Such other reasonable information as the Department
8    may require.
9    Each retailer required or authorized to collect the tax
10imposed by this Act on aviation fuel sold at retail in this
11State during the preceding calendar month shall, instead of
12reporting and paying tax on aviation fuel as otherwise
13required by this Section, report and pay such tax on a separate
14aviation fuel tax return. The requirements related to the
15return shall be as otherwise provided in this Section.
16Notwithstanding any other provisions of this Act to the
17contrary, retailers collecting tax on aviation fuel shall file
18all aviation fuel tax returns and shall make all aviation fuel
19tax payments by electronic means in the manner and form
20required by the Department. For purposes of this Section,
21"aviation fuel" means jet fuel and aviation gasoline.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Notwithstanding any other provision of this Act to the

 

 

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1contrary, retailers subject to tax on cannabis shall file all
2cannabis tax returns and shall make all cannabis tax payments
3by electronic means in the manner and form required by the
4Department.
5    Beginning October 1, 1993, a taxpayer who has an average
6monthly tax liability of $150,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1994, a taxpayer who has
9an average monthly tax liability of $100,000 or more shall
10make all payments required by rules of the Department by
11electronic funds transfer. Beginning October 1, 1995, a
12taxpayer who has an average monthly tax liability of $50,000
13or more shall make all payments required by rules of the
14Department by electronic funds transfer. Beginning October 1,
152000, a taxpayer who has an annual tax liability of $200,000 or
16more shall make all payments required by rules of the
17Department by electronic funds transfer. The term "annual tax
18liability" shall be the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year. The term "average monthly
22tax liability" means the sum of the taxpayer's liabilities
23under this Act, and under all other State and local occupation
24and use tax laws administered by the Department, for the
25immediately preceding calendar year divided by 12. Beginning
26on October 1, 2002, a taxpayer who has a tax liability in the

 

 

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1amount set forth in subsection (b) of Section 2505-210 of the
2Department of Revenue Law shall make all payments required by
3rules of the Department by electronic funds transfer.
4    Before August 1 of each year beginning in 1993, the
5Department shall notify all taxpayers required to make
6payments by electronic funds transfer. All taxpayers required
7to make payments by electronic funds transfer shall make those
8payments for a minimum of one year beginning on October 1.
9    Any taxpayer not required to make payments by electronic
10funds transfer may make payments by electronic funds transfer
11with the permission of the Department.
12    All taxpayers required to make payment by electronic funds
13transfer and any taxpayers authorized to voluntarily make
14payments by electronic funds transfer shall make those
15payments in the manner authorized by the Department.
16    The Department shall adopt such rules as are necessary to
17effectuate a program of electronic funds transfer and the
18requirements of this Section.
19    Before October 1, 2000, if the taxpayer's average monthly
20tax liability to the Department under this Act, the Retailers'
21Occupation Tax Act, the Service Occupation Tax Act, the
22Service Use Tax Act was $10,000 or more during the preceding 4
23complete calendar quarters, he shall file a return with the
24Department each month by the 20th day of the month next
25following the month during which such tax liability is
26incurred and shall make payments to the Department on or

 

 

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1before the 7th, 15th, 22nd and last day of the month during
2which such liability is incurred. On and after October 1,
32000, if the taxpayer's average monthly tax liability to the
4Department under this Act, the Retailers' Occupation Tax Act,
5the Service Occupation Tax Act, and the Service Use Tax Act was
6$20,000 or more during the preceding 4 complete calendar
7quarters, he shall file a return with the Department each
8month by the 20th day of the month next following the month
9during which such tax liability is incurred and shall make
10payment to the Department on or before the 7th, 15th, 22nd and
11last day of the month during which such liability is incurred.
12If the month during which such tax liability is incurred began
13prior to January 1, 1985, each payment shall be in an amount
14equal to 1/4 of the taxpayer's actual liability for the month
15or an amount set by the Department not to exceed 1/4 of the
16average monthly liability of the taxpayer to the Department
17for the preceding 4 complete calendar quarters (excluding the
18month of highest liability and the month of lowest liability
19in such 4 quarter period). If the month during which such tax
20liability is incurred begins on or after January 1, 1985, and
21prior to January 1, 1987, each payment shall be in an amount
22equal to 22.5% of the taxpayer's actual liability for the
23month or 27.5% of the taxpayer's liability for the same
24calendar month of the preceding year. If the month during
25which such tax liability is incurred begins on or after
26January 1, 1987, and prior to January 1, 1988, each payment

 

 

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1shall be in an amount equal to 22.5% of the taxpayer's actual
2liability for the month or 26.25% of the taxpayer's liability
3for the same calendar month of the preceding year. If the month
4during which such tax liability is incurred begins on or after
5January 1, 1988, and prior to January 1, 1989, or begins on or
6after January 1, 1996, each payment shall be in an amount equal
7to 22.5% of the taxpayer's actual liability for the month or
825% of the taxpayer's liability for the same calendar month of
9the preceding year. If the month during which such tax
10liability is incurred begins on or after January 1, 1989, and
11prior to January 1, 1996, each payment shall be in an amount
12equal to 22.5% of the taxpayer's actual liability for the
13month or 25% of the taxpayer's liability for the same calendar
14month of the preceding year or 100% of the taxpayer's actual
15liability for the quarter monthly reporting period. The amount
16of such quarter monthly payments shall be credited against the
17final tax liability of the taxpayer's return for that month.
18Before October 1, 2000, once applicable, the requirement of
19the making of quarter monthly payments to the Department shall
20continue until such taxpayer's average monthly liability to
21the Department during the preceding 4 complete calendar
22quarters (excluding the month of highest liability and the
23month of lowest liability) is less than $9,000, or until such
24taxpayer's average monthly liability to the Department as
25computed for each calendar quarter of the 4 preceding complete
26calendar quarter period is less than $10,000. However, if a

 

 

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1taxpayer can show the Department that a substantial change in
2the taxpayer's business has occurred which causes the taxpayer
3to anticipate that his average monthly tax liability for the
4reasonably foreseeable future will fall below the $10,000
5threshold stated above, then such taxpayer may petition the
6Department for change in such taxpayer's reporting status. On
7and after October 1, 2000, once applicable, the requirement of
8the making of quarter monthly payments to the Department shall
9continue until such taxpayer's average monthly liability to
10the Department during the preceding 4 complete calendar
11quarters (excluding the month of highest liability and the
12month of lowest liability) is less than $19,000 or until such
13taxpayer's average monthly liability to the Department as
14computed for each calendar quarter of the 4 preceding complete
15calendar quarter period is less than $20,000. However, if a
16taxpayer can show the Department that a substantial change in
17the taxpayer's business has occurred which causes the taxpayer
18to anticipate that his average monthly tax liability for the
19reasonably foreseeable future will fall below the $20,000
20threshold stated above, then such taxpayer may petition the
21Department for a change in such taxpayer's reporting status.
22The Department shall change such taxpayer's reporting status
23unless it finds that such change is seasonal in nature and not
24likely to be long term. Quarter monthly payment status shall
25be determined under this paragraph as if the rate reduction to
261.25% in Public Act 102-700 on sales tax holiday items had not

 

 

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1occurred. For quarter monthly payments due on or after July 1,
22023 and through June 30, 2024, "25% of the taxpayer's
3liability for the same calendar month of the preceding year"
4shall be determined as if the rate reduction to 1.25% in Public
5Act 102-700 on sales tax holiday items had not occurred.
6Quarter monthly payment status shall be determined under this
7paragraph as if the rate reduction to 0% in Public Act 102-700
8on food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages,
10food consisting of or infused with adult use cannabis, soft
11drinks, and food that has been prepared for immediate
12consumption) had not occurred. For quarter monthly payments
13due under this paragraph on or after July 1, 2023 and through
14June 30, 2024, "25% of the taxpayer's liability for the same
15calendar month of the preceding year" shall be determined as
16if the rate reduction to 0% in Public Act 102-700 had not
17occurred. If any such quarter monthly payment is not paid at
18the time or in the amount required by this Section, then the
19taxpayer shall be liable for penalties and interest on the
20difference between the minimum amount due and the amount of
21such quarter monthly payment actually and timely paid, except
22insofar as the taxpayer has previously made payments for that
23month to the Department in excess of the minimum payments
24previously due as provided in this Section. The Department
25shall make reasonable rules and regulations to govern the
26quarter monthly payment amount and quarter monthly payment

 

 

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1dates for taxpayers who file on other than a calendar monthly
2basis.
3    If any such payment provided for in this Section exceeds
4the taxpayer's liabilities under this Act, the Retailers'
5Occupation Tax Act, the Service Occupation Tax Act and the
6Service Use Tax Act, as shown by an original monthly return,
7the Department shall issue to the taxpayer a credit memorandum
8no later than 30 days after the date of payment, which
9memorandum may be submitted by the taxpayer to the Department
10in payment of tax liability subsequently to be remitted by the
11taxpayer to the Department or be assigned by the taxpayer to a
12similar taxpayer under this Act, the Retailers' Occupation Tax
13Act, the Service Occupation Tax Act or the Service Use Tax Act,
14in accordance with reasonable rules and regulations to be
15prescribed by the Department, except that if such excess
16payment is shown on an original monthly return and is made
17after December 31, 1986, no credit memorandum shall be issued,
18unless requested by the taxpayer. If no such request is made,
19the taxpayer may credit such excess payment against tax
20liability subsequently to be remitted by the taxpayer to the
21Department under this Act, the Retailers' Occupation Tax Act,
22the Service Occupation Tax Act or the Service Use Tax Act, in
23accordance with reasonable rules and regulations prescribed by
24the Department. If the Department subsequently determines that
25all or any part of the credit taken was not actually due to the
26taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall

 

 

SB3725- 44 -LRB103 38226 HLH 68360 b

1be reduced by 2.1% or 1.75% of the difference between the
2credit taken and that actually due, and the taxpayer shall be
3liable for penalties and interest on such difference.
4    If the retailer is otherwise required to file a monthly
5return and if the retailer's average monthly tax liability to
6the Department does not exceed $200, the Department may
7authorize his returns to be filed on a quarter annual basis,
8with the return for January, February, and March of a given
9year being due by April 20 of such year; with the return for
10April, May and June of a given year being due by July 20 of
11such year; with the return for July, August and September of a
12given year being due by October 20 of such year, and with the
13return for October, November and December of a given year
14being due by January 20 of the following year.
15    If the retailer is otherwise required to file a monthly or
16quarterly return and if the retailer's average monthly tax
17liability to the Department does not exceed $50, the
18Department may authorize his returns to be filed on an annual
19basis, with the return for a given year being due by January 20
20of the following year.
21    Such quarter annual and annual returns, as to form and
22substance, shall be subject to the same requirements as
23monthly returns.
24    Notwithstanding any other provision in this Act concerning
25the time within which a retailer may file his return, in the
26case of any retailer who ceases to engage in a kind of business

 

 

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1which makes him responsible for filing returns under this Act,
2such retailer shall file a final return under this Act with the
3Department not more than one month after discontinuing such
4business.
5    In addition, with respect to motor vehicles, watercraft,
6aircraft, and trailers that are required to be registered with
7an agency of this State, except as otherwise provided in this
8Section, every retailer selling this kind of tangible personal
9property shall file, with the Department, upon a form to be
10prescribed and supplied by the Department, a separate return
11for each such item of tangible personal property which the
12retailer sells, except that if, in the same transaction, (i) a
13retailer of aircraft, watercraft, motor vehicles or trailers
14transfers more than one aircraft, watercraft, motor vehicle or
15trailer to another aircraft, watercraft, motor vehicle or
16trailer retailer for the purpose of resale or (ii) a retailer
17of aircraft, watercraft, motor vehicles, or trailers transfers
18more than one aircraft, watercraft, motor vehicle, or trailer
19to a purchaser for use as a qualifying rolling stock as
20provided in Section 3-55 of this Act, then that seller may
21report the transfer of all the aircraft, watercraft, motor
22vehicles or trailers involved in that transaction to the
23Department on the same uniform invoice-transaction reporting
24return form. For purposes of this Section, "watercraft" means
25a Class 2, Class 3, or Class 4 watercraft as defined in Section
263-2 of the Boat Registration and Safety Act, a personal

 

 

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1watercraft, or any boat equipped with an inboard motor.
2    In addition, with respect to motor vehicles, watercraft,
3aircraft, and trailers that are required to be registered with
4an agency of this State, every person who is engaged in the
5business of leasing or renting such items and who, in
6connection with such business, sells any such item to a
7retailer for the purpose of resale is, notwithstanding any
8other provision of this Section to the contrary, authorized to
9meet the return-filing requirement of this Act by reporting
10the transfer of all the aircraft, watercraft, motor vehicles,
11or trailers transferred for resale during a month to the
12Department on the same uniform invoice-transaction reporting
13return form on or before the 20th of the month following the
14month in which the transfer takes place. Notwithstanding any
15other provision of this Act to the contrary, all returns filed
16under this paragraph must be filed by electronic means in the
17manner and form as required by the Department.
18    The transaction reporting return in the case of motor
19vehicles or trailers that are required to be registered with
20an agency of this State, shall be the same document as the
21Uniform Invoice referred to in Section 5-402 of the Illinois
22Vehicle Code and must show the name and address of the seller;
23the name and address of the purchaser; the amount of the
24selling price including the amount allowed by the retailer for
25traded-in property, if any; the amount allowed by the retailer
26for the traded-in tangible personal property, if any, to the

 

 

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1extent to which Section 2 of this Act allows an exemption for
2the value of traded-in property; the balance payable after
3deducting such trade-in allowance from the total selling
4price; the amount of tax due from the retailer with respect to
5such transaction; the amount of tax collected from the
6purchaser by the retailer on such transaction (or satisfactory
7evidence that such tax is not due in that particular instance,
8if that is claimed to be the fact); the place and date of the
9sale; a sufficient identification of the property sold; such
10other information as is required in Section 5-402 of the
11Illinois Vehicle Code, and such other information as the
12Department may reasonably require.
13    The transaction reporting return in the case of watercraft
14and aircraft must show the name and address of the seller; the
15name and address of the purchaser; the amount of the selling
16price including the amount allowed by the retailer for
17traded-in property, if any; the amount allowed by the retailer
18for the traded-in tangible personal property, if any, to the
19extent to which Section 2 of this Act allows an exemption for
20the value of traded-in property; the balance payable after
21deducting such trade-in allowance from the total selling
22price; the amount of tax due from the retailer with respect to
23such transaction; the amount of tax collected from the
24purchaser by the retailer on such transaction (or satisfactory
25evidence that such tax is not due in that particular instance,
26if that is claimed to be the fact); the place and date of the

 

 

SB3725- 48 -LRB103 38226 HLH 68360 b

1sale, a sufficient identification of the property sold, and
2such other information as the Department may reasonably
3require.
4    Such transaction reporting return shall be filed not later
5than 20 days after the date of delivery of the item that is
6being sold, but may be filed by the retailer at any time sooner
7than that if he chooses to do so. The transaction reporting
8return and tax remittance or proof of exemption from the tax
9that is imposed by this Act may be transmitted to the
10Department by way of the State agency with which, or State
11officer with whom, the tangible personal property must be
12titled or registered (if titling or registration is required)
13if the Department and such agency or State officer determine
14that this procedure will expedite the processing of
15applications for title or registration.
16    With each such transaction reporting return, the retailer
17shall remit the proper amount of tax due (or shall submit
18satisfactory evidence that the sale is not taxable if that is
19the case), to the Department or its agents, whereupon the
20Department shall issue, in the purchaser's name, a tax receipt
21(or a certificate of exemption if the Department is satisfied
22that the particular sale is tax exempt) which such purchaser
23may submit to the agency with which, or State officer with
24whom, he must title or register the tangible personal property
25that is involved (if titling or registration is required) in
26support of such purchaser's application for an Illinois

 

 

SB3725- 49 -LRB103 38226 HLH 68360 b

1certificate or other evidence of title or registration to such
2tangible personal property.
3    No retailer's failure or refusal to remit tax under this
4Act precludes a user, who has paid the proper tax to the
5retailer, from obtaining his certificate of title or other
6evidence of title or registration (if titling or registration
7is required) upon satisfying the Department that such user has
8paid the proper tax (if tax is due) to the retailer. The
9Department shall adopt appropriate rules to carry out the
10mandate of this paragraph.
11    If the user who would otherwise pay tax to the retailer
12wants the transaction reporting return filed and the payment
13of tax or proof of exemption made to the Department before the
14retailer is willing to take these actions and such user has not
15paid the tax to the retailer, such user may certify to the fact
16of such delay by the retailer, and may (upon the Department
17being satisfied of the truth of such certification) transmit
18the information required by the transaction reporting return
19and the remittance for tax or proof of exemption directly to
20the Department and obtain his tax receipt or exemption
21determination, in which event the transaction reporting return
22and tax remittance (if a tax payment was required) shall be
23credited by the Department to the proper retailer's account
24with the Department, but without the 2.1% or 1.75% discount
25provided for in this Section being allowed. When the user pays
26the tax directly to the Department, he shall pay the tax in the

 

 

SB3725- 50 -LRB103 38226 HLH 68360 b

1same amount and in the same form in which it would be remitted
2if the tax had been remitted to the Department by the retailer.
3    Where a retailer collects the tax with respect to the
4selling price of tangible personal property which he sells and
5the purchaser thereafter returns such tangible personal
6property and the retailer refunds the selling price thereof to
7the purchaser, such retailer shall also refund, to the
8purchaser, the tax so collected from the purchaser. When
9filing his return for the period in which he refunds such tax
10to the purchaser, the retailer may deduct the amount of the tax
11so refunded by him to the purchaser from any other use tax
12which such retailer may be required to pay or remit to the
13Department, as shown by such return, if the amount of the tax
14to be deducted was previously remitted to the Department by
15such retailer. If the retailer has not previously remitted the
16amount of such tax to the Department, he is entitled to no
17deduction under this Act upon refunding such tax to the
18purchaser.
19    Any retailer filing a return under this Section shall also
20include (for the purpose of paying tax thereon) the total tax
21covered by such return upon the selling price of tangible
22personal property purchased by him at retail from a retailer,
23but as to which the tax imposed by this Act was not collected
24from the retailer filing such return, and such retailer shall
25remit the amount of such tax to the Department when filing such
26return.

 

 

SB3725- 51 -LRB103 38226 HLH 68360 b

1    If experience indicates such action to be practicable, the
2Department may prescribe and furnish a combination or joint
3return which will enable retailers, who are required to file
4returns hereunder and also under the Retailers' Occupation Tax
5Act, to furnish all the return information required by both
6Acts on the one form.
7    Where the retailer has more than one business registered
8with the Department under separate registration under this
9Act, such retailer may not file each return that is due as a
10single return covering all such registered businesses, but
11shall file separate returns for each such registered business.
12    Beginning January 1, 1990 and until August 1, 2024, each
13month the Department shall pay into the State and Local Sales
14Tax Reform Fund, a special fund in the State Treasury which is
15hereby created, the net revenue realized for the preceding
16month from the 1% tax imposed under this Act.
17    Beginning August 1, 2024, the State Comptroller shall
18order transferred and the State Treasurer shall transfer from
19the General Revenue Fund to the State and Local Sales Tax
20Reform Fund, the amount deposited into the State and Local
21Sales Tax Reform Fund for the same month in calendar year 2021
22from items that were subject to a 1% rate of tax in calendar
23year 2021. On August 1 of each year thereafter, the amount
24transferred from the General Revenue Fund to the State and
25Local Sales Tax Reform Fund under this paragraph shall be
26increased by the percentage change, if any, in the Consumer

 

 

SB3725- 52 -LRB103 38226 HLH 68360 b

1Price Index for All Urban Consumers as issued by the United
2States Department of Labor for the most recent 12-month period
3for which data is available.
4    Beginning January 1, 1990, each month the Department shall
5pay into the County and Mass Transit District Fund 4% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on the selling price of tangible personal
8property which is purchased outside Illinois at retail from a
9retailer and which is titled or registered by an agency of this
10State's government.
11    Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund, a special
13fund in the State Treasury, 20% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property, other than (i) tangible
16personal property which is purchased outside Illinois at
17retail from a retailer and which is titled or registered by an
18agency of this State's government and (ii) aviation fuel sold
19on or after December 1, 2019. This exception for aviation fuel
20only applies for so long as the revenue use requirements of 49
21U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
22    For aviation fuel sold on or after December 1, 2019, each
23month the Department shall pay into the State Aviation Program
24Fund 20% of the net revenue realized for the preceding month
25from the 6.25% general rate on the selling price of aviation
26fuel, less an amount estimated by the Department to be

 

 

SB3725- 53 -LRB103 38226 HLH 68360 b

1required for refunds of the 20% portion of the tax on aviation
2fuel under this Act, which amount shall be deposited into the
3Aviation Fuel Sales Tax Refund Fund. The Department shall only
4pay moneys into the State Aviation Program Fund and the
5Aviation Fuels Sales Tax Refund Fund under this Act for so long
6as the revenue use requirements of 49 U.S.C. 47107(b) and 49
7U.S.C. 47133 are binding on the State.
8    Beginning August 1, 2000, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 100% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol. If, in any
12month, the tax on sales tax holiday items, as defined in
13Section 3-6, is imposed at the rate of 1.25%, then the
14Department shall pay 100% of the net revenue realized for that
15month from the 1.25% rate on the selling price of sales tax
16holiday items into the State and Local Sales Tax Reform Fund.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the net revenue
19realized for the preceding month from the 6.25% general rate
20on the selling price of tangible personal property which is
21purchased outside Illinois at retail from a retailer and which
22is titled or registered by an agency of this State's
23government.
24    Beginning October 1, 2009, each month the Department shall
25pay into the Capital Projects Fund an amount that is equal to
26an amount estimated by the Department to represent 80% of the

 

 

SB3725- 54 -LRB103 38226 HLH 68360 b

1net revenue realized for the preceding month from the sale of
2candy, grooming and hygiene products, and soft drinks that had
3been taxed at a rate of 1% prior to September 1, 2009 but that
4are now taxed at 6.25%.
5    Beginning July 1, 2011, each month the Department shall
6pay into the Clean Air Act Permit Fund 80% of the net revenue
7realized for the preceding month from the 6.25% general rate
8on the selling price of sorbents used in Illinois in the
9process of sorbent injection as used to comply with the
10Environmental Protection Act or the federal Clean Air Act, but
11the total payment into the Clean Air Act Permit Fund under this
12Act and the Retailers' Occupation Tax Act shall not exceed
13$2,000,000 in any fiscal year.
14    Beginning July 1, 2013, each month the Department shall
15pay into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Service Use Tax Act, the Service
17Occupation Tax Act, and the Retailers' Occupation Tax Act an
18amount equal to the average monthly deficit in the Underground
19Storage Tank Fund during the prior year, as certified annually
20by the Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Service Use Tax Act, the Service Occupation Tax Act, and
23the Retailers' Occupation Tax Act shall not exceed $18,000,000
24in any State fiscal year. As used in this paragraph, the
25"average monthly deficit" shall be equal to the difference
26between the average monthly claims for payment by the fund and

 

 

SB3725- 55 -LRB103 38226 HLH 68360 b

1the average monthly revenues deposited into the fund,
2excluding payments made pursuant to this paragraph.
3    Beginning July 1, 2015, of the remainder of the moneys
4received by the Department under this Act, the Service Use Tax
5Act, the Service Occupation Tax Act, and the Retailers'
6Occupation Tax Act, each month the Department shall deposit
7$500,000 into the State Crime Laboratory Fund.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

SB3725- 56 -LRB103 38226 HLH 68360 b

1the Tax Acts; and further provided, that if on the last
2business day of any month the sum of (1) the Tax Act Amount
3required to be deposited into the Build Illinois Bond Account
4in the Build Illinois Fund during such month and (2) the amount
5transferred during such month to the Build Illinois Fund from
6the State and Local Sales Tax Reform Fund shall have been less
7than 1/12 of the Annual Specified Amount, an amount equal to
8the difference shall be immediately paid into the Build
9Illinois Fund from other moneys received by the Department
10pursuant to the Tax Acts; and, further provided, that in no
11event shall the payments required under the preceding proviso
12result in aggregate payments into the Build Illinois Fund
13pursuant to this clause (b) for any fiscal year in excess of
14the greater of (i) the Tax Act Amount or (ii) the Annual
15Specified Amount for such fiscal year; and, further provided,
16that the amounts payable into the Build Illinois Fund under
17this clause (b) shall be payable only until such time as the
18aggregate amount on deposit under each trust indenture
19securing Bonds issued and outstanding pursuant to the Build
20Illinois Bond Act is sufficient, taking into account any
21future investment income, to fully provide, in accordance with
22such indenture, for the defeasance of or the payment of the
23principal of, premium, if any, and interest on the Bonds
24secured by such indenture and on any Bonds expected to be
25issued thereafter and all fees and costs payable with respect
26thereto, all as certified by the Director of the Bureau of the

 

 

SB3725- 57 -LRB103 38226 HLH 68360 b

1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois
12Fund; provided, however, that any amounts paid to the Build
13Illinois Fund in any fiscal year pursuant to this sentence
14shall be deemed to constitute payments pursuant to clause (b)
15of the preceding sentence and shall reduce the amount
16otherwise payable for such fiscal year pursuant to clause (b)
17of the preceding sentence. The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

SB3725- 58 -LRB103 38226 HLH 68360 b

1provided under Section 8.25f of the State Finance Act, but not
2in excess of the sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000
262010139,000,000

 

 

SB3725- 59 -LRB103 38226 HLH 68360 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021300,000,000
122022300,000,000
132023300,000,000
142024 300,000,000
152025 300,000,000
162026 300,000,000
172027 375,000,000
182028 375,000,000
192029 375,000,000
202030 375,000,000
212031 375,000,000
222032 375,000,000
232033 375,000,000
242034375,000,000
252035375,000,000
262036450,000,000

 

 

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1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total
21Deposit", has been deposited.
22    Subject to payment of amounts into the Capital Projects
23Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, for aviation fuel sold on or after December 1, 2019,

 

 

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1the Department shall each month deposit into the Aviation Fuel
2Sales Tax Refund Fund an amount estimated by the Department to
3be required for refunds of the 80% portion of the tax on
4aviation fuel under this Act. The Department shall only
5deposit moneys into the Aviation Fuel Sales Tax Refund Fund
6under this paragraph for so long as the revenue use
7requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
8binding on the State.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning July 1, 1993 and ending on September 30,
132013, the Department shall each month pay into the Illinois
14Tax Increment Fund 0.27% of 80% of the net revenue realized for
15the preceding month from the 6.25% general rate on the selling
16price of tangible personal property.
17    Subject to payment of amounts into the Build Illinois
18Fund, the McCormick Place Expansion Project Fund, the Illinois
19Tax Increment Fund, and the Energy Infrastructure Fund
20pursuant to the preceding paragraphs or in any amendments to
21this Section hereafter enacted, beginning on the first day of
22the first calendar month to occur on or after August 26, 2014
23(the effective date of Public Act 98-1098), each month, from
24the collections made under Section 9 of the Use Tax Act,
25Section 9 of the Service Use Tax Act, Section 9 of the Service
26Occupation Tax Act, and Section 3 of the Retailers' Occupation

 

 

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1Tax Act, the Department shall pay into the Tax Compliance and
2Administration Fund, to be used, subject to appropriation, to
3fund additional auditors and compliance personnel at the
4Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5the cash receipts collected during the preceding fiscal year
6by the Audit Bureau of the Department under the Use Tax Act,
7the Service Use Tax Act, the Service Occupation Tax Act, the
8Retailers' Occupation Tax Act, and associated local occupation
9and use taxes administered by the Department.
10    Subject to payments of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, and the Tax Compliance and Administration
13Fund as provided in this Section, beginning on July 1, 2018 the
14Department shall pay each month into the Downstate Public
15Transportation Fund the moneys required to be so paid under
16Section 2-3 of the Downstate Public Transportation Act.
17    Subject to successful execution and delivery of a
18public-private agreement between the public agency and private
19entity and completion of the civic build, beginning on July 1,
202023, of the remainder of the moneys received by the
21Department under the Use Tax Act, the Service Use Tax Act, the
22Service Occupation Tax Act, and this Act, the Department shall
23deposit the following specified deposits in the aggregate from
24collections under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and the Retailers' Occupation Tax
26Act, as required under Section 8.25g of the State Finance Act

 

 

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1for distribution consistent with the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3The moneys received by the Department pursuant to this Act and
4required to be deposited into the Civic and Transit
5Infrastructure Fund are subject to the pledge, claim, and
6charge set forth in Section 25-55 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8As used in this paragraph, "civic build", "private entity",
9"public-private agreement", and "public agency" have the
10meanings provided in Section 25-10 of the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12        Fiscal Year............................Total Deposit
13        2024....................................$200,000,000
14        2025....................................$206,000,000
15        2026....................................$212,200,000
16        2027....................................$218,500,000
17        2028....................................$225,100,000
18        2029....................................$288,700,000
19        2030....................................$298,900,000
20        2031....................................$309,300,000
21        2032....................................$320,100,000
22        2033....................................$331,200,000
23        2034....................................$341,200,000
24        2035....................................$351,400,000
25        2036....................................$361,900,000
26        2037....................................$372,800,000

 

 

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1        2038....................................$384,000,000
2        2039....................................$395,500,000
3        2040....................................$407,400,000
4        2041....................................$419,600,000
5        2042....................................$432,200,000
6        2043....................................$445,100,000
7    Beginning July 1, 2021 and until July 1, 2022, subject to
8the payment of amounts into the State and Local Sales Tax
9Reform Fund, the Build Illinois Fund, the McCormick Place
10Expansion Project Fund, the Illinois Tax Increment Fund, and
11the Tax Compliance and Administration Fund as provided in this
12Section, the Department shall pay each month into the Road
13Fund the amount estimated to represent 16% of the net revenue
14realized from the taxes imposed on motor fuel and gasohol.
15Beginning July 1, 2022 and until July 1, 2023, subject to the
16payment of amounts into the State and Local Sales Tax Reform
17Fund, the Build Illinois Fund, the McCormick Place Expansion
18Project Fund, the Illinois Tax Increment Fund, and the Tax
19Compliance and Administration Fund as provided in this
20Section, the Department shall pay each month into the Road
21Fund the amount estimated to represent 32% of the net revenue
22realized from the taxes imposed on motor fuel and gasohol.
23Beginning July 1, 2023 and until July 1, 2024, subject to the
24payment of amounts into the State and Local Sales Tax Reform
25Fund, the Build Illinois Fund, the McCormick Place Expansion
26Project Fund, the Illinois Tax Increment Fund, and the Tax

 

 

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1Compliance and Administration Fund as provided in this
2Section, the Department shall pay each month into the Road
3Fund the amount estimated to represent 48% of the net revenue
4realized from the taxes imposed on motor fuel and gasohol.
5Beginning July 1, 2024 and until July 1, 2025, subject to the
6payment of amounts into the State and Local Sales Tax Reform
7Fund, the Build Illinois Fund, the McCormick Place Expansion
8Project Fund, the Illinois Tax Increment Fund, and the Tax
9Compliance and Administration Fund as provided in this
10Section, the Department shall pay each month into the Road
11Fund the amount estimated to represent 64% of the net revenue
12realized from the taxes imposed on motor fuel and gasohol.
13Beginning on July 1, 2025, subject to the payment of amounts
14into the State and Local Sales Tax Reform Fund, the Build
15Illinois Fund, the McCormick Place Expansion Project Fund, the
16Illinois Tax Increment Fund, and the Tax Compliance and
17Administration Fund as provided in this Section, the
18Department shall pay each month into the Road Fund the amount
19estimated to represent 80% of the net revenue realized from
20the taxes imposed on motor fuel and gasohol. As used in this
21paragraph "motor fuel" has the meaning given to that term in
22Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
23meaning given to that term in Section 3-40 of this Act.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% thereof shall be paid into the State
26Treasury and 25% shall be reserved in a special account and

 

 

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1used only for the transfer to the Common School Fund as part of
2the monthly transfer from the General Revenue Fund in
3accordance with Section 8a of the State Finance Act.
4    As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11    Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15    For greater simplicity of administration, manufacturers,
16importers and wholesalers whose products are sold at retail in
17Illinois by numerous retailers, and who wish to do so, may
18assume the responsibility for accounting and paying to the
19Department all tax accruing under this Act with respect to
20such sales, if the retailers who are affected do not make
21written objection to the Department to this arrangement.
22(Source: P.A. 102-700, Article 60, Section 60-15, eff.
234-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
24102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
257-28-23.)
 

 

 

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1    Section 10. The Service Use Tax Act is amended by changing
2Sections 3-5, 3-10, and 9 as follows:
 
3    (35 ILCS 110/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a non-profit Illinois
14county fair association for use in conducting, operating, or
15promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after July 1, 2001 (the
2effective date of Public Act 92-35), however, an entity
3otherwise eligible for this exemption shall not make tax-free
4purchases unless it has an active identification number issued
5by the Department.
6    (4) Legal tender, currency, medallions, or gold or silver
7coinage issued by the State of Illinois, the government of the
8United States of America, or the government of any foreign
9country, and bullion.
10    (5) Until July 1, 2003 and beginning again on September 1,
112004 through August 30, 2014, graphic arts machinery and
12equipment, including repair and replacement parts, both new
13and used, and including that manufactured on special order or
14purchased for lease, certified by the purchaser to be used
15primarily for graphic arts production. Equipment includes
16chemicals or chemicals acting as catalysts but only if the
17chemicals or chemicals acting as catalysts effect a direct and
18immediate change upon a graphic arts product. Beginning on
19July 1, 2017, graphic arts machinery and equipment is included
20in the manufacturing and assembling machinery and equipment
21exemption under Section 2 of this Act.
22    (6) Personal property purchased from a teacher-sponsored
23student organization affiliated with an elementary or
24secondary school located in Illinois.
25    (7) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

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1purchaser to be used primarily for production agriculture or
2State or federal agricultural programs, including individual
3replacement parts for the machinery and equipment, including
4machinery and equipment purchased for lease, and including
5implements of husbandry defined in Section 1-130 of the
6Illinois Vehicle Code, farm machinery and agricultural
7chemical and fertilizer spreaders, and nurse wagons required
8to be registered under Section 3-809 of the Illinois Vehicle
9Code, but excluding other motor vehicles required to be
10registered under the Illinois Vehicle Code. Horticultural
11polyhouses or hoop houses used for propagating, growing, or
12overwintering plants shall be considered farm machinery and
13equipment under this item (7). Agricultural chemical tender
14tanks and dry boxes shall include units sold separately from a
15motor vehicle required to be licensed and units sold mounted
16on a motor vehicle required to be licensed if the selling price
17of the tender is separately stated.
18    Farm machinery and equipment shall include precision
19farming equipment that is installed or purchased to be
20installed on farm machinery and equipment, including, but not
21limited to, tractors, harvesters, sprayers, planters, seeders,
22or spreaders. Precision farming equipment includes, but is not
23limited to, soil testing sensors, computers, monitors,
24software, global positioning and mapping systems, and other
25such equipment.
26    Farm machinery and equipment also includes computers,

 

 

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1sensors, software, and related equipment used primarily in the
2computer-assisted operation of production agriculture
3facilities, equipment, and activities such as, but not limited
4to, the collection, monitoring, and correlation of animal and
5crop data for the purpose of formulating animal diets and
6agricultural chemicals.
7    Beginning on January 1, 2024, farm machinery and equipment
8also includes electrical power generation equipment used
9primarily for production agriculture.
10    This item (7) is exempt from the provisions of Section
113-75.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the
15conduct of its business as an air common carrier, for a flight
16destined for or returning from a location or locations outside
17the United States without regard to previous or subsequent
18domestic stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold
20to or used by an air carrier, certified by the carrier to be
21used for consumption, shipment, or storage in the conduct of
22its business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports
25at least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages acquired as an incident to the purchase of a
6service from a serviceman, to the extent that the proceeds of
7the service charge are in fact turned over as tips or as a
8substitute for tips to the employees who participate directly
9in preparing, serving, hosting or cleaning up the food or
10beverage function with respect to which the service charge is
11imposed.
12    (10) Until July 1, 2003, oil field exploration, drilling,
13and production equipment, including (i) rigs and parts of
14rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
15pipe and tubular goods, including casing and drill strings,
16(iii) pumps and pump-jack units, (iv) storage tanks and flow
17lines, (v) any individual replacement part for oil field
18exploration, drilling, and production equipment, and (vi)
19machinery and equipment purchased for lease; but excluding
20motor vehicles required to be registered under the Illinois
21Vehicle Code.
22    (11) Proceeds from the sale of photoprocessing machinery
23and equipment, including repair and replacement parts, both
24new and used, including that manufactured on special order,
25certified by the purchaser to be used primarily for
26photoprocessing, and including photoprocessing machinery and

 

 

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1equipment purchased for lease.
2    (12) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13    (13) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (14) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (14) is exempt from the
21provisions of Section 3-75, and the exemption provided for
22under this item (14) applies for all periods beginning May 30,
231995, but no claim for credit or refund is allowed on or after
24January 1, 2008 (the effective date of Public Act 95-88) for
25such taxes paid during the period beginning May 30, 2000 and
26ending on January 1, 2008 (the effective date of Public Act

 

 

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195-88).
2    (15) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other non-exempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Use Tax Act, as the case
14may be, based on the fair market value of the property at the
15time the non-qualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Use Tax Act, as the case may be, if the tax has not
19been paid by the lessor. If a lessor improperly collects any
20such amount from the lessee, the lessee shall have a legal
21right to claim a refund of that amount from the lessor. If,
22however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department.
25    (16) Personal property purchased by a lessor who leases
26the property, under a lease of one year or longer executed or

 

 

SB3725- 74 -LRB103 38226 HLH 68360 b

1in effect at the time the lessor would otherwise be subject to
2the tax imposed by this Act, to a governmental body that has
3been issued an active tax exemption identification number by
4the Department under Section 1g of the Retailers' Occupation
5Tax Act. If the property is leased in a manner that does not
6qualify for this exemption or is used in any other non-exempt
7manner, the lessor shall be liable for the tax imposed under
8this Act or the Use Tax Act, as the case may be, based on the
9fair market value of the property at the time the
10non-qualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid
14by the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that
17amount is not refunded to the lessee for any reason, the lessor
18is liable to pay that amount to the Department.
19    (17) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (18) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including, but not limited to, municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (19) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-75.
20    (20) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

SB3725- 76 -LRB103 38226 HLH 68360 b

1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (21) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

SB3725- 77 -LRB103 38226 HLH 68360 b

1    (22) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-75.
11    (23) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (24) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

SB3725- 78 -LRB103 38226 HLH 68360 b

1diagnosis, analysis, or treatment of hospital patients
2purchased by a lessor who leases the equipment, under a lease
3of one year or longer executed or in effect at the time the
4lessor would otherwise be subject to the tax imposed by this
5Act, to a hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the equipment is leased
8in a manner that does not qualify for this exemption or is used
9in any other nonexempt manner, the lessor shall be liable for
10the tax imposed under this Act or the Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the nonqualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Use Tax Act, as the case may be, if the tax has not
16been paid by the lessor. If a lessor improperly collects any
17such amount from the lessee, the lessee shall have a legal
18right to claim a refund of that amount from the lessor. If,
19however, that amount is not refunded to the lessee for any
20reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-75.
23    (25) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), personal property purchased by a lessor
25who leases the property, under a lease of one year or longer
26executed or in effect at the time the lessor would otherwise be

 

 

SB3725- 79 -LRB103 38226 HLH 68360 b

1subject to the tax imposed by this Act, to a governmental body
2that has been issued an active tax exemption identification
3number by the Department under Section 1g of the Retailers'
4Occupation Tax Act. If the property is leased in a manner that
5does not qualify for this exemption or is used in any other
6nonexempt manner, the lessor shall be liable for the tax
7imposed under this Act or the Use Tax Act, as the case may be,
8based on the fair market value of the property at the time the
9nonqualifying use occurs. No lessor shall collect or attempt
10to collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid
13by the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that
16amount is not refunded to the lessee for any reason, the lessor
17is liable to pay that amount to the Department. This paragraph
18is exempt from the provisions of Section 3-75.
19    (26) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued
24under Title IV of the Environmental Protection Act. This
25paragraph is exempt from the provisions of Section 3-75.
26    (27) Beginning January 1, 2010 and continuing through

 

 

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1December 31, 2029, materials, parts, equipment, components,
2and furnishings incorporated into or upon an aircraft as part
3of the modification, refurbishment, completion, replacement,
4repair, or maintenance of the aircraft. This exemption
5includes consumable supplies used in the modification,
6refurbishment, completion, replacement, repair, and
7maintenance of aircraft. However, until January 1, 2024, this
8exemption excludes any materials, parts, equipment,
9components, and consumable supplies used in the modification,
10replacement, repair, and maintenance of aircraft engines or
11power plants, whether such engines or power plants are
12installed or uninstalled upon any such aircraft. "Consumable
13supplies" include, but are not limited to, adhesive, tape,
14sandpaper, general purpose lubricants, cleaning solution,
15latex gloves, and protective films.
16    Beginning January 1, 2010 and continuing through December
1731, 2023, this exemption applies only to the use of qualifying
18tangible personal property transferred incident to the
19modification, refurbishment, completion, replacement, repair,
20or maintenance of aircraft by persons who (i) hold an Air
21Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25From January 1, 2024 through December 31, 2029, this exemption
26applies only to the use of qualifying tangible personal

 

 

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1property by: (A) persons who modify, refurbish, complete,
2repair, replace, or maintain aircraft and who (i) hold an Air
3Agency Certificate and are empowered to operate an approved
4repair station by the Federal Aviation Administration, (ii)
5have a Class IV Rating, and (iii) conduct operations in
6accordance with Part 145 of the Federal Aviation Regulations;
7and (B) persons who engage in the modification, replacement,
8repair, and maintenance of aircraft engines or power plants
9without regard to whether or not those persons meet the
10qualifications of item (A).
11    The exemption does not include aircraft operated by a
12commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part
14129 of the Federal Aviation Regulations. The changes made to
15this paragraph (27) by Public Act 98-534 are declarative of
16existing law. It is the intent of the General Assembly that the
17exemption under this paragraph (27) applies continuously from
18January 1, 2010 through December 31, 2024; however, no claim
19for credit or refund is allowed for taxes paid as a result of
20the disallowance of this exemption on or after January 1, 2015
21and prior to February 5, 2020 (the effective date of Public Act
22101-629).
23    (28) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt
6instruments issued by the public-facilities corporation in
7connection with the development of the municipal convention
8hall. This exemption includes existing public-facilities
9corporations as provided in Section 11-65-25 of the Illinois
10Municipal Code. This paragraph is exempt from the provisions
11of Section 3-75.
12    (29) Beginning January 1, 2017 and through December 31,
132026, menstrual pads, tampons, and menstrual cups.
14    (30) Tangible personal property transferred to a purchaser
15who is exempt from the tax imposed by this Act by operation of
16federal law. This paragraph is exempt from the provisions of
17Section 3-75.
18    (31) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had Public Act 101-31 been in effect, may apply for and

 

 

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1obtain an exemption for subsequent purchases of computer
2equipment or enabling software purchased or leased to upgrade,
3supplement, or replace computer equipment or enabling software
4purchased or leased in the original investment that would have
5qualified.
6    The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (31) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    For the purposes of this item (31):
12        "Data center" means a building or a series of
13    buildings rehabilitated or constructed to house working
14    servers in one physical location or multiple sites within
15    the State of Illinois.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and secure systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated into in to the qualifying data center. To
13    document the exemption allowed under this Section, the
14    retailer must obtain from the purchaser a copy of the
15    certificate of eligibility issued by the Department of
16    Commerce and Economic Opportunity.
17    This item (31) is exempt from the provisions of Section
183-75.
19    (32) Beginning July 1, 2022, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (32) is exempt from the provisions of Section 3-75. As
22used in this item (32):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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1    other power supply unit that is used to power the pump
2    device and is packaged and sold with the pump device at the
3    time of sale.
4        "Breast pump collection and storage supplies" means
5    items of tangible personal property designed or marketed
6    to be used in conjunction with a breast pump to collect
7    milk expressed from a human breast and to store collected
8    milk until it is ready for consumption.
9        "Breast pump collection and storage supplies"
10    includes, but is not limited to: breast shields and breast
11    shield connectors; breast pump tubes and tubing adapters;
12    breast pump valves and membranes; backflow protectors and
13    backflow protector adaptors; bottles and bottle caps
14    specific to the operation of the breast pump; and breast
15    milk storage bags.
16        "Breast pump collection and storage supplies" does not
17    include: (1) bottles and bottle caps not specific to the
18    operation of the breast pump; (2) breast pump travel bags
19    and other similar carrying accessories, including ice
20    packs, labels, and other similar products; (3) breast pump
21    cleaning supplies; (4) nursing bras, bra pads, breast
22    shells, and other similar products; and (5) creams,
23    ointments, and other similar products that relieve
24    breastfeeding-related symptoms or conditions of the
25    breasts or nipples, unless sold as part of a breast pump
26    kit that is pre-packaged by the breast pump manufacturer

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9    (33) Tangible personal property sold by or on behalf of
10the State Treasurer pursuant to the Revised Uniform Unclaimed
11Property Act. This item (33) is exempt from the provisions of
12Section 3-75.
13    (34) Beginning on January 1, 2024, tangible personal
14property purchased by an active duty member of the armed
15forces of the United States who presents valid military
16identification and purchases the property using a form of
17payment where the federal government is the payor. The member
18of the armed forces must complete, at the point of sale, a form
19prescribed by the Department of Revenue documenting that the
20transaction is eligible for the exemption under this
21paragraph. Retailers must keep the form as documentation of
22the exemption in their records for a period of not less than 6
23years. "Armed forces of the United States" means the United
24States Army, Navy, Air Force, Marine Corps, or Coast Guard.
25This paragraph is exempt from the provisions of Section 3-75.
26    (35) Beginning on July 1, 2024, as defined in Section

 

 

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13-10, food prepared for immediate consumption and transferred
2incident to a sale of service subject to this Act or the
3Service Occupation Tax Act by an entity licensed under the
4Hospital Licensing Act, the Nursing Home Care Act, the
5Assisted Living and Shared Housing Act, the ID/DD Community
6Care Act, the MC/DD Act, the Specialized Mental Health
7Rehabilitation Act of 2013, or the Child Care Act of 1969, or
8an entity that holds a permit issued pursuant to the Life Care
9Facilities Act. This item (35) is exempt from the provisions
10of Section 3-75.
11    (36) Beginning on July 1, 2024, as defined in Section
123-10, food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14food consisting of or infused with adult use cannabis, soft
15drinks, and food that has been prepared for immediate
16consumption). This item (36) is exempt from the provisions of
17Section 3-75.
18    (37) Beginning on July 1, 2024, the following items, as
19defined in Section 3-10:
20        (A) prescription and nonprescription medicines, drugs,
21    and medical appliances;
22        (B) products classified as Class III medical devices
23    by the United States Food and Drug Administration that are
24    used for cancer treatment pursuant to a prescription, as
25    well as any accessories and components related to those
26    devices;

 

 

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1        (C) modifications to a motor vehicle for the purpose
2    of rendering it usable by a person with a disability; and
3        (D) insulin, blood sugar testing materials, syringes,
4    and needles used by human diabetics.
5    This item (37) is exempt from the provisions of Section
63-75.
7(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
8Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
975-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
10Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
11eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
12revised 12-12-23.)
 
13    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16the selling price of tangible personal property transferred as
17an incident to the sale of service, but, for the purpose of
18computing this tax, in no event shall the selling price be less
19than the cost price of the property to the serviceman.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act applies to (i) 70% of the selling price

 

 

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1of property transferred as an incident to the sale of service
2on or after January 1, 1990, and before July 1, 2003, (ii) 80%
3of the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5July 1, 2017, (iii) 100% of the selling price of property
6transferred as an incident to the sale of service after July 1,
72017 and before January 1, 2024, (iv) 90% of the selling price
8of property transferred as an incident to the sale of service
9on or after January 1, 2024 and on or before December 31, 2028,
10and (v) 100% of the selling price of property transferred as an
11incident to the sale of service after December 31, 2028. If, at
12any time, however, the tax under this Act on sales of gasohol,
13as defined in the Use Tax Act, is imposed at the rate of 1.25%,
14then the tax imposed by this Act applies to 100% of the
15proceeds of sales of gasohol made during that time.
16    With respect to mid-range ethanol blends, as defined in
17Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
18applies to (i) 80% of the selling price of property
19transferred as an incident to the sale of service on or after
20January 1, 2024 and on or before December 31, 2028 and (ii)
21100% of the selling price of property transferred as an
22incident to the sale of service after December 31, 2028. If, at
23any time, however, the tax under this Act on sales of mid-range
24ethanol blends is imposed at the rate of 1.25%, then the tax
25imposed by this Act applies to 100% of the selling price of
26mid-range ethanol blends transferred as an incident to the

 

 

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1sale of service during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2028 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use
9Tax Act, with no less than 1% and no more than 10% biodiesel,
10the tax imposed by this Act applies to (i) 80% of the selling
11price of property transferred as an incident to the sale of
12service on or after July 1, 2003 and on or before December 31,
132018 and (ii) 100% of the proceeds of the selling price after
14December 31, 2018 and before January 1, 2024. On and after
15January 1, 2024 and on or before December 31, 2030, the
16taxation of biodiesel, renewable diesel, and biodiesel blends
17shall be as provided in Section 3-5.1 of the Use Tax Act. If,
18at any time, however, the tax under this Act on sales of
19biodiesel blends, as defined in the Use Tax Act, with no less
20than 1% and no more than 10% biodiesel is imposed at the rate
21of 1.25%, then the tax imposed by this Act applies to 100% of
22the proceeds of sales of biodiesel blends with no less than 1%
23and no more than 10% biodiesel made during that time.
24    With respect to biodiesel, as defined in the Use Tax Act,
25and biodiesel blends, as defined in the Use Tax Act, with more
26than 10% but no more than 99% biodiesel, the tax imposed by

 

 

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1this Act does not apply to the proceeds of the selling price of
2property transferred as an incident to the sale of service on
3or after July 1, 2003 and on or before December 31, 2023. On
4and after January 1, 2024 and on or before December 31, 2030,
5the taxation of biodiesel, renewable diesel, and biodiesel
6blends shall be as provided in Section 3-5.1 of the Use Tax
7Act.
8    At the election of any registered serviceman made for each
9fiscal year, sales of service in which the aggregate annual
10cost price of tangible personal property transferred as an
11incident to the sales of service is less than 35%, or 75% in
12the case of servicemen transferring prescription drugs or
13servicemen engaged in graphic arts production, of the
14aggregate annual total gross receipts from all sales of
15service, the tax imposed by this Act shall be based on the
16serviceman's cost price of the tangible personal property
17transferred as an incident to the sale of those services.
18    Until July 1, 2022 and from beginning again on July 1, 2023
19through June 30, 2024, the tax shall be imposed at the rate of
201% on food prepared for immediate consumption and transferred
21incident to a sale of service subject to this Act or the
22Service Occupation Tax Act by an entity licensed under the
23Hospital Licensing Act, the Nursing Home Care Act, the
24Assisted Living and Shared Housing Act, the ID/DD Community
25Care Act, the MC/DD Act, the Specialized Mental Health
26Rehabilitation Act of 2013, or the Child Care Act of 1969, or

 

 

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1an entity that holds a permit issued pursuant to the Life Care
2Facilities Act. Until July 1, 2022 and beginning again on July
31, 2023, the tax shall also be imposed at the rate of 1% on
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6food consisting of or infused with adult use cannabis, soft
7drinks, and food that has been prepared for immediate
8consumption and is not otherwise included in this paragraph).
9    Beginning on July 1, 2022 and until July 1, 2023, the tax
10shall be imposed at the rate of 0% on food prepared for
11immediate consumption and transferred incident to a sale of
12service subject to this Act or the Service Occupation Tax Act
13by an entity licensed under the Hospital Licensing Act, the
14Nursing Home Care Act, the Assisted Living and Shared Housing
15Act, the ID/DD Community Care Act, the MC/DD Act, the
16Specialized Mental Health Rehabilitation Act of 2013, or the
17Child Care Act of 1969, or an entity that holds a permit issued
18pursuant to the Life Care Facilities Act. Beginning on July 1,
192022 and until July 1, 2023, the tax shall also be imposed at
20the rate of 0% on food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption and is not otherwise included in this
25paragraph).
26    Through June 30, 2024, the The tax shall also be imposed at

 

 

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1the rate of 1% on prescription and nonprescription medicines,
2drugs, medical appliances, products classified as Class III
3medical devices by the United States Food and Drug
4Administration that are used for cancer treatment pursuant to
5a prescription, as well as any accessories and components
6related to those devices, modifications to a motor vehicle for
7the purpose of rendering it usable by a person with a
8disability, and insulin, blood sugar testing materials,
9syringes, and needles used by human diabetics. For the
10purposes of this Section, until September 1, 2009: the term
11"soft drinks" means any complete, finished, ready-to-use,
12non-alcoholic drink, whether carbonated or not, including, but
13not limited to, soda water, cola, fruit juice, vegetable
14juice, carbonated water, and all other preparations commonly
15known as soft drinks of whatever kind or description that are
16contained in any closed or sealed bottle, can, carton, or
17container, regardless of size; but "soft drinks" does not
18include coffee, tea, non-carbonated water, infant formula,
19milk or milk products as defined in the Grade A Pasteurized
20Milk and Milk Products Act, or drinks containing 50% or more
21natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" does not include beverages that contain milk or milk
26products, soy, rice or similar milk substitutes, or greater

 

 

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1than 50% of vegetable or fruit juice by volume.
2    Until August 1, 2009, and notwithstanding any other
3provisions of this Act, "food for human consumption that is to
4be consumed off the premises where it is sold" includes all
5food sold through a vending machine, except soft drinks and
6food products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine. Beginning
8August 1, 2009, and notwithstanding any other provisions of
9this Act, "food for human consumption that is to be consumed
10off the premises where it is sold" includes all food sold
11through a vending machine, except soft drinks, candy, and food
12products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "food for human consumption that
16is to be consumed off the premises where it is sold" does not
17include candy. For purposes of this Section, "candy" means a
18preparation of sugar, honey, or other natural or artificial
19sweeteners in combination with chocolate, fruits, nuts or
20other ingredients or flavorings in the form of bars, drops, or
21pieces. "Candy" does not include any preparation that contains
22flour or requires refrigeration.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "nonprescription medicines and
25drugs" does not include grooming and hygiene products. For
26purposes of this Section, "grooming and hygiene products"

 

 

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1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 CFR 201.66. The "over-the-counter-drug"
9label includes:
10        (A) a "Drug Facts" panel; or
11        (B) a statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on January 1, 2014 (the effective date of Public
15Act 98-122), "prescription and nonprescription medicines and
16drugs" includes medical cannabis purchased from a registered
17dispensing organization under the Compassionate Use of Medical
18Cannabis Program Act.
19    As used in this Section, "adult use cannabis" means
20cannabis subject to tax under the Cannabis Cultivation
21Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
22and does not include cannabis subject to tax under the
23Compassionate Use of Medical Cannabis Program Act.
24    If the property that is acquired from a serviceman is
25acquired outside Illinois and used outside Illinois before
26being brought to Illinois for use here and is taxable under

 

 

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1this Act, the "selling price" on which the tax is computed
2shall be reduced by an amount that represents a reasonable
3allowance for depreciation for the period of prior
4out-of-state use.
5(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
6102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
7Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
8103-154, eff. 6-30-23.)
 
9    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
10    Sec. 9. Each serviceman required or authorized to collect
11the tax herein imposed shall pay to the Department the amount
12of such tax (except as otherwise provided) at the time when he
13is required to file his return for the period during which such
14tax was collected, less a discount of 2.1% prior to January 1,
151990 and 1.75% on and after January 1, 1990, or $5 per calendar
16year, whichever is greater, which is allowed to reimburse the
17serviceman for expenses incurred in collecting the tax,
18keeping records, preparing and filing returns, remitting the
19tax and supplying data to the Department on request. When
20determining the discount allowed under this Section,
21servicemen shall include the amount of tax that would have
22been due at the 1% rate but for the 0% rate imposed under this
23amendatory Act of the 102nd General Assembly. The discount
24under this Section is not allowed for the 1.25% portion of
25taxes paid on aviation fuel that is subject to the revenue use

 

 

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1requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
2discount allowed under this Section is allowed only for
3returns that are filed in the manner required by this Act. The
4Department may disallow the discount for servicemen whose
5certificate of registration is revoked at the time the return
6is filed, but only if the Department's decision to revoke the
7certificate of registration has become final. A serviceman
8need not remit that part of any tax collected by him to the
9extent that he is required to pay and does pay the tax imposed
10by the Service Occupation Tax Act with respect to his sale of
11service involving the incidental transfer by him of the same
12property.
13    Except as provided hereinafter in this Section, on or
14before the twentieth day of each calendar month, such
15serviceman shall file a return for the preceding calendar
16month in accordance with reasonable Rules and Regulations to
17be promulgated by the Department. Such return shall be filed
18on a form prescribed by the Department and shall contain such
19information as the Department may reasonably require. The
20return shall include the gross receipts which were received
21during the preceding calendar month or quarter on the
22following items upon which tax would have been due but for the
230% rate imposed under this amendatory Act of the 102nd General
24Assembly: (i) food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, food consisting of or infused with adult

 

 

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1use cannabis, soft drinks, and food that has been prepared for
2immediate consumption); and (ii) food prepared for immediate
3consumption and transferred incident to a sale of service
4subject to this Act or the Service Occupation Tax Act by an
5entity licensed under the Hospital Licensing Act, the Nursing
6Home Care Act, the Assisted Living and Shared Housing Act, the
7ID/DD Community Care Act, the MC/DD Act, the Specialized
8Mental Health Rehabilitation Act of 2013, or the Child Care
9Act of 1969, or an entity that holds a permit issued pursuant
10to the Life Care Facilities Act. The return shall also include
11the amount of tax that would have been due on the items listed
12in the previous sentence but for the 0% rate imposed under this
13amendatory Act of the 102nd General Assembly.
14    On and after January 1, 2018, with respect to servicemen
15whose annual gross receipts average $20,000 or more, all
16returns required to be filed pursuant to this Act shall be
17filed electronically. Servicemen who demonstrate that they do
18not have access to the Internet or demonstrate hardship in
19filing electronically may petition the Department to waive the
20electronic filing requirement.
21    The Department may require returns to be filed on a
22quarterly basis. If so required, a return for each calendar
23quarter shall be filed on or before the twentieth day of the
24calendar month following the end of such calendar quarter. The
25taxpayer shall also file a return with the Department for each
26of the first two months of each calendar quarter, on or before

 

 

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1the twentieth day of the following calendar month, stating:
2        1. The name of the seller;
3        2. The address of the principal place of business from
4    which he engages in business as a serviceman in this
5    State;
6        3. The total amount of taxable receipts received by
7    him during the preceding calendar month, including
8    receipts from charge and time sales, but less all
9    deductions allowed by law;
10        4. The amount of credit provided in Section 2d of this
11    Act;
12        5. The amount of tax due;
13        5-5. The signature of the taxpayer; and
14        6. Such other reasonable information as the Department
15    may require.
16    Each serviceman required or authorized to collect the tax
17imposed by this Act on aviation fuel transferred as an
18incident of a sale of service in this State during the
19preceding calendar month shall, instead of reporting and
20paying tax on aviation fuel as otherwise required by this
21Section, report and pay such tax on a separate aviation fuel
22tax return. The requirements related to the return shall be as
23otherwise provided in this Section. Notwithstanding any other
24provisions of this Act to the contrary, servicemen collecting
25tax on aviation fuel shall file all aviation fuel tax returns
26and shall make all aviation fuel tax payments by electronic

 

 

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1means in the manner and form required by the Department. For
2purposes of this Section, "aviation fuel" means jet fuel and
3aviation gasoline.
4    If a taxpayer fails to sign a return within 30 days after
5the proper notice and demand for signature by the Department,
6the return shall be considered valid and any amount shown to be
7due on the return shall be deemed assessed.
8    Notwithstanding any other provision of this Act to the
9contrary, servicemen subject to tax on cannabis shall file all
10cannabis tax returns and shall make all cannabis tax payments
11by electronic means in the manner and form required by the
12Department.
13    Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall
18make all payments required by rules of the Department by
19electronic funds transfer. Beginning October 1, 1995, a
20taxpayer who has an average monthly tax liability of $50,000
21or more shall make all payments required by rules of the
22Department by electronic funds transfer. Beginning October 1,
232000, a taxpayer who has an annual tax liability of $200,000 or
24more shall make all payments required by rules of the
25Department by electronic funds transfer. The term "annual tax
26liability" shall be the sum of the taxpayer's liabilities

 

 

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1under this Act, and under all other State and local occupation
2and use tax laws administered by the Department, for the
3immediately preceding calendar year. The term "average monthly
4tax liability" means the sum of the taxpayer's liabilities
5under this Act, and under all other State and local occupation
6and use tax laws administered by the Department, for the
7immediately preceding calendar year divided by 12. Beginning
8on October 1, 2002, a taxpayer who has a tax liability in the
9amount set forth in subsection (b) of Section 2505-210 of the
10Department of Revenue Law shall make all payments required by
11rules of the Department by electronic funds transfer.
12    Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make
14payments by electronic funds transfer. All taxpayers required
15to make payments by electronic funds transfer shall make those
16payments for a minimum of one year beginning on October 1.
17    Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20    All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those
23payments in the manner authorized by the Department.
24    The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

 

 

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1    If the serviceman is otherwise required to file a monthly
2return and if the serviceman's average monthly tax liability
3to the Department does not exceed $200, the Department may
4authorize his returns to be filed on a quarter annual basis,
5with the return for January, February and March of a given year
6being due by April 20 of such year; with the return for April,
7May and June of a given year being due by July 20 of such year;
8with the return for July, August and September of a given year
9being due by October 20 of such year, and with the return for
10October, November and December of a given year being due by
11January 20 of the following year.
12    If the serviceman is otherwise required to file a monthly
13or quarterly return and if the serviceman's average monthly
14tax liability to the Department does not exceed $50, the
15Department may authorize his returns to be filed on an annual
16basis, with the return for a given year being due by January 20
17of the following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as
20monthly returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which a serviceman may file his return, in the
23case of any serviceman who ceases to engage in a kind of
24business which makes him responsible for filing returns under
25this Act, such serviceman shall file a final return under this
26Act with the Department not more than 1 month after

 

 

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1discontinuing such business.
2    Where a serviceman collects the tax with respect to the
3selling price of property which he sells and the purchaser
4thereafter returns such property and the serviceman refunds
5the selling price thereof to the purchaser, such serviceman
6shall also refund, to the purchaser, the tax so collected from
7the purchaser. When filing his return for the period in which
8he refunds such tax to the purchaser, the serviceman may
9deduct the amount of the tax so refunded by him to the
10purchaser from any other Service Use Tax, Service Occupation
11Tax, retailers' occupation tax or use tax which such
12serviceman may be required to pay or remit to the Department,
13as shown by such return, provided that the amount of the tax to
14be deducted shall previously have been remitted to the
15Department by such serviceman. If the serviceman shall not
16previously have remitted the amount of such tax to the
17Department, he shall be entitled to no deduction hereunder
18upon refunding such tax to the purchaser.
19    Any serviceman filing a return hereunder shall also
20include the total tax upon the selling price of tangible
21personal property purchased for use by him as an incident to a
22sale of service, and such serviceman shall remit the amount of
23such tax to the Department when filing such return.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable servicemen, who are required to file

 

 

SB3725- 104 -LRB103 38226 HLH 68360 b

1returns hereunder and also under the Service Occupation Tax
2Act, to furnish all the return information required by both
3Acts on the one form.
4    Where the serviceman has more than one business registered
5with the Department under separate registration hereunder,
6such serviceman shall not file each return that is due as a
7single return covering all such registered businesses, but
8shall file separate returns for each such registered business.
9    Beginning January 1, 1990 and until August 1, 2024, each
10month the Department shall pay into the State and Local Tax
11Reform Fund, a special fund in the State Treasury, the net
12revenue realized for the preceding month from the 1% tax
13imposed under this Act.
14    Beginning on August 1, 2024, the State Comptroller shall
15order transferred and the State Treasurer shall transfer from
16the General Revenue Fund to the State and Local Sales Tax
17Reform Fund, the amount deposited into the State and Local
18Sales Tax Reform Fund for the same month in calendar year 2021
19from items that were subject to a 1% rate of tax in calendar
20year 2021. On August 1 of each year thereafter, the amount
21transferred from the General Revenue Fund to the State and
22Local Sales Tax Reform Fund under this paragraph shall be
23increased by the percentage change, if any, in the Consumer
24Price Index for All Urban Consumers as issued by the United
25States Department of Labor for the most recent 12-month period
26for which data is available.

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 20% of the
3net revenue realized for the preceding month from the 6.25%
4general rate on transfers of tangible personal property, other
5than (i) tangible personal property which is purchased outside
6Illinois at retail from a retailer and which is titled or
7registered by an agency of this State's government and (ii)
8aviation fuel sold on or after December 1, 2019. This
9exception for aviation fuel only applies for so long as the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133 are binding on the State.
12    For aviation fuel sold on or after December 1, 2019, each
13month the Department shall pay into the State Aviation Program
14Fund 20% of the net revenue realized for the preceding month
15from the 6.25% general rate on the selling price of aviation
16fuel, less an amount estimated by the Department to be
17required for refunds of the 20% portion of the tax on aviation
18fuel under this Act, which amount shall be deposited into the
19Aviation Fuel Sales Tax Refund Fund. The Department shall only
20pay moneys into the State Aviation Program Fund and the
21Aviation Fuel Sales Tax Refund Fund under this Act for so long
22as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 100% of the
26net revenue realized for the preceding month from the 1.25%

 

 

SB3725- 106 -LRB103 38226 HLH 68360 b

1rate on the selling price of motor fuel and gasohol.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8are now taxed at 6.25%.
9    Beginning July 1, 2013, each month the Department shall
10pay into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service
12Occupation Tax Act, and the Retailers' Occupation Tax Act an
13amount equal to the average monthly deficit in the Underground
14Storage Tank Fund during the prior year, as certified annually
15by the Illinois Environmental Protection Agency, but the total
16payment into the Underground Storage Tank Fund under this Act,
17the Use Tax Act, the Service Occupation Tax Act, and the
18Retailers' Occupation Tax Act shall not exceed $18,000,000 in
19any State fiscal year. As used in this paragraph, the "average
20monthly deficit" shall be equal to the difference between the
21average monthly claims for payment by the fund and the average
22monthly revenues deposited into the fund, excluding payments
23made pursuant to this paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, this Act, the
26Service Occupation Tax Act, and the Retailers' Occupation Tax

 

 

SB3725- 107 -LRB103 38226 HLH 68360 b

1Act, each month the Department shall deposit $500,000 into the
2State Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to Section 3
11of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
12Act, Section 9 of the Service Use Tax Act, and Section 9 of the
13Service Occupation Tax Act, such Acts being hereinafter called
14the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
15may be, of moneys being hereinafter called the "Tax Act
16Amount", and (2) the amount transferred to the Build Illinois
17Fund from the State and Local Sales Tax Reform Fund shall be
18less than the Annual Specified Amount (as defined in Section 3
19of the Retailers' Occupation Tax Act), an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and further provided, that if on the last
23business day of any month the sum of (1) the Tax Act Amount
24required to be deposited into the Build Illinois Bond Account
25in the Build Illinois Fund during such month and (2) the amount
26transferred during such month to the Build Illinois Fund from

 

 

SB3725- 108 -LRB103 38226 HLH 68360 b

1the State and Local Sales Tax Reform Fund shall have been less
2than 1/12 of the Annual Specified Amount, an amount equal to
3the difference shall be immediately paid into the Build
4Illinois Fund from other moneys received by the Department
5pursuant to the Tax Acts; and, further provided, that in no
6event shall the payments required under the preceding proviso
7result in aggregate payments into the Build Illinois Fund
8pursuant to this clause (b) for any fiscal year in excess of
9the greater of (i) the Tax Act Amount or (ii) the Annual
10Specified Amount for such fiscal year; and, further provided,
11that the amounts payable into the Build Illinois Fund under
12this clause (b) shall be payable only until such time as the
13aggregate amount on deposit under each trust indenture
14securing Bonds issued and outstanding pursuant to the Build
15Illinois Bond Act is sufficient, taking into account any
16future investment income, to fully provide, in accordance with
17such indenture, for the defeasance of or the payment of the
18principal of, premium, if any, and interest on the Bonds
19secured by such indenture and on any Bonds expected to be
20issued thereafter and all fees and costs payable with respect
21thereto, all as certified by the Director of the Bureau of the
22Budget (now Governor's Office of Management and Budget). If on
23the last business day of any month in which Bonds are
24outstanding pursuant to the Build Illinois Bond Act, the
25aggregate of the moneys deposited in the Build Illinois Bond
26Account in the Build Illinois Fund in such month shall be less

 

 

SB3725- 109 -LRB103 38226 HLH 68360 b

1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois
7Fund; provided, however, that any amounts paid to the Build
8Illinois Fund in any fiscal year pursuant to this sentence
9shall be deemed to constitute payments pursuant to clause (b)
10of the preceding sentence and shall reduce the amount
11otherwise payable for such fiscal year pursuant to clause (b)
12of the preceding sentence. The moneys received by the
13Department pursuant to this Act and required to be deposited
14into the Build Illinois Fund are subject to the pledge, claim
15and charge set forth in Section 12 of the Build Illinois Bond
16Act.
17    Subject to payment of amounts into the Build Illinois Fund
18as provided in the preceding paragraph or in any amendment
19thereto hereafter enacted, the following specified monthly
20installment of the amount requested in the certificate of the
21Chairman of the Metropolitan Pier and Exposition Authority
22provided under Section 8.25f of the State Finance Act, but not
23in excess of the sums designated as "Total Deposit", shall be
24deposited in the aggregate from collections under Section 9 of
25the Use Tax Act, Section 9 of the Service Use Tax Act, Section
269 of the Service Occupation Tax Act, and Section 3 of the

 

 

SB3725- 110 -LRB103 38226 HLH 68360 b

1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
 
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000

 

 

SB3725- 111 -LRB103 38226 HLH 68360 b

12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021300,000,000
82022300,000,000
92023300,000,000
102024 300,000,000
112025 300,000,000
122026 300,000,000
132027 375,000,000
142028 375,000,000
152029 375,000,000
162030 375,000,000
172031 375,000,000
182032 375,000,000
192033 375,000,000
202034375,000,000
212035375,000,000
222036450,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

SB3725- 112 -LRB103 38226 HLH 68360 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total
17Deposit", has been deposited.
18    Subject to payment of amounts into the Capital Projects
19Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, for aviation fuel sold on or after December 1, 2019,
23the Department shall each month deposit into the Aviation Fuel
24Sales Tax Refund Fund an amount estimated by the Department to
25be required for refunds of the 80% portion of the tax on
26aviation fuel under this Act. The Department shall only

 

 

SB3725- 113 -LRB103 38226 HLH 68360 b

1deposit moneys into the Aviation Fuel Sales Tax Refund Fund
2under this paragraph for so long as the revenue use
3requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
4binding on the State.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois
10Tax Increment Fund 0.27% of 80% of the net revenue realized for
11the preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13    Subject to payment of amounts into the Build Illinois
14Fund, the McCormick Place Expansion Project Fund, the Illinois
15Tax Increment Fund, pursuant to the preceding paragraphs or in
16any amendments to this Section hereafter enacted, beginning on
17the first day of the first calendar month to occur on or after
18August 26, 2014 (the effective date of Public Act 98-1098),
19each month, from the collections made under Section 9 of the
20Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
21the Service Occupation Tax Act, and Section 3 of the
22Retailers' Occupation Tax Act, the Department shall pay into
23the Tax Compliance and Administration Fund, to be used,
24subject to appropriation, to fund additional auditors and
25compliance personnel at the Department of Revenue, an amount
26equal to 1/12 of 5% of 80% of the cash receipts collected

 

 

SB3725- 114 -LRB103 38226 HLH 68360 b

1during the preceding fiscal year by the Audit Bureau of the
2Department under the Use Tax Act, the Service Use Tax Act, the
3Service Occupation Tax Act, the Retailers' Occupation Tax Act,
4and associated local occupation and use taxes administered by
5the Department.
6    Subject to payments of amounts into the Build Illinois
7Fund, the McCormick Place Expansion Project Fund, the Illinois
8Tax Increment Fund, and the Tax Compliance and Administration
9Fund as provided in this Section, beginning on July 1, 2018 the
10Department shall pay each month into the Downstate Public
11Transportation Fund the moneys required to be so paid under
12Section 2-3 of the Downstate Public Transportation Act.
13    Subject to successful execution and delivery of a
14public-private agreement between the public agency and private
15entity and completion of the civic build, beginning on July 1,
162023, of the remainder of the moneys received by the
17Department under the Use Tax Act, the Service Use Tax Act, the
18Service Occupation Tax Act, and this Act, the Department shall
19deposit the following specified deposits in the aggregate from
20collections under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and the Retailers' Occupation Tax
22Act, as required under Section 8.25g of the State Finance Act
23for distribution consistent with the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25The moneys received by the Department pursuant to this Act and
26required to be deposited into the Civic and Transit

 

 

SB3725- 115 -LRB103 38226 HLH 68360 b

1Infrastructure Fund are subject to the pledge, claim, and
2charge set forth in Section 25-55 of the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4As used in this paragraph, "civic build", "private entity",
5"public-private agreement", and "public agency" have the
6meanings provided in Section 25-10 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8        Fiscal Year............................Total Deposit
9        2024....................................$200,000,000
10        2025....................................$206,000,000
11        2026....................................$212,200,000
12        2027....................................$218,500,000
13        2028....................................$225,100,000
14        2029....................................$288,700,000
15        2030....................................$298,900,000
16        2031....................................$309,300,000
17        2032....................................$320,100,000
18        2033....................................$331,200,000
19        2034....................................$341,200,000
20        2035....................................$351,400,000
21        2036....................................$361,900,000
22        2037....................................$372,800,000
23        2038....................................$384,000,000
24        2039....................................$395,500,000
25        2040....................................$407,400,000
26        2041....................................$419,600,000

 

 

SB3725- 116 -LRB103 38226 HLH 68360 b

1        2042....................................$432,200,000
2        2043....................................$445,100,000
3    Beginning July 1, 2021 and until July 1, 2022, subject to
4the payment of amounts into the State and Local Sales Tax
5Reform Fund, the Build Illinois Fund, the McCormick Place
6Expansion Project Fund, the Energy Infrastructure Fund, and
7the Tax Compliance and Administration Fund as provided in this
8Section, the Department shall pay each month into the Road
9Fund the amount estimated to represent 16% of the net revenue
10realized from the taxes imposed on motor fuel and gasohol.
11Beginning July 1, 2022 and until July 1, 2023, subject to the
12payment of amounts into the State and Local Sales Tax Reform
13Fund, the Build Illinois Fund, the McCormick Place Expansion
14Project Fund, the Illinois Tax Increment Fund, and the Tax
15Compliance and Administration Fund as provided in this
16Section, the Department shall pay each month into the Road
17Fund the amount estimated to represent 32% of the net revenue
18realized from the taxes imposed on motor fuel and gasohol.
19Beginning July 1, 2023 and until July 1, 2024, subject to the
20payment of amounts into the State and Local Sales Tax Reform
21Fund, the Build Illinois Fund, the McCormick Place Expansion
22Project Fund, the Illinois Tax Increment Fund, and the Tax
23Compliance and Administration Fund as provided in this
24Section, the Department shall pay each month into the Road
25Fund the amount estimated to represent 48% of the net revenue
26realized from the taxes imposed on motor fuel and gasohol.

 

 

SB3725- 117 -LRB103 38226 HLH 68360 b

1Beginning July 1, 2024 and until July 1, 2025, subject to the
2payment of amounts into the State and Local Sales Tax Reform
3Fund, the Build Illinois Fund, the McCormick Place Expansion
4Project Fund, the Illinois Tax Increment Fund, and the Tax
5Compliance and Administration Fund as provided in this
6Section, the Department shall pay each month into the Road
7Fund the amount estimated to represent 64% of the net revenue
8realized from the taxes imposed on motor fuel and gasohol.
9Beginning on July 1, 2025, subject to the payment of amounts
10into the State and Local Sales Tax Reform Fund, the Build
11Illinois Fund, the McCormick Place Expansion Project Fund, the
12Illinois Tax Increment Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 80% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. As used in this
17paragraph "motor fuel" has the meaning given to that term in
18Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
19meaning given to that term in Section 3-40 of the Use Tax Act.
20    Of the remainder of the moneys received by the Department
21pursuant to this Act, 75% thereof shall be paid into the
22General Revenue Fund of the State Treasury and 25% shall be
23reserved in a special account and used only for the transfer to
24the Common School Fund as part of the monthly transfer from the
25General Revenue Fund in accordance with Section 8a of the
26State Finance Act.

 

 

SB3725- 118 -LRB103 38226 HLH 68360 b

1    As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8    Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 
13    Section 15. The Service Occupation Tax Act is amended by
14changing Sections 3-5, 3-10, and 9 as follows:
 
15    (35 ILCS 115/3-5)
16    Sec. 3-5. Exemptions. The following tangible personal
17property is exempt from the tax imposed by this Act:
18    (1) Personal property sold by a corporation, society,
19association, foundation, institution, or organization, other
20than a limited liability company, that is organized and
21operated as a not-for-profit service enterprise for the
22benefit of persons 65 years of age or older if the personal
23property was not purchased by the enterprise for the purpose
24of resale by the enterprise.

 

 

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1    (2) Personal property purchased by a not-for-profit
2Illinois county fair association for use in conducting,
3operating, or promoting the county fair.
4    (3) Personal property purchased by any not-for-profit arts
5or cultural organization that establishes, by proof required
6by the Department by rule, that it has received an exemption
7under Section 501(c)(3) of the Internal Revenue Code and that
8is organized and operated primarily for the presentation or
9support of arts or cultural programming, activities, or
10services. These organizations include, but are not limited to,
11music and dramatic arts organizations such as symphony
12orchestras and theatrical groups, arts and cultural service
13organizations, local arts councils, visual arts organizations,
14and media arts organizations. On and after July 1, 2001 (the
15effective date of Public Act 92-35), however, an entity
16otherwise eligible for this exemption shall not make tax-free
17purchases unless it has an active identification number issued
18by the Department.
19    (4) Legal tender, currency, medallions, or gold or silver
20coinage issued by the State of Illinois, the government of the
21United States of America, or the government of any foreign
22country, and bullion.
23    (5) Until July 1, 2003 and beginning again on September 1,
242004 through August 30, 2014, graphic arts machinery and
25equipment, including repair and replacement parts, both new
26and used, and including that manufactured on special order or

 

 

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1purchased for lease, certified by the purchaser to be used
2primarily for graphic arts production. Equipment includes
3chemicals or chemicals acting as catalysts but only if the
4chemicals or chemicals acting as catalysts effect a direct and
5immediate change upon a graphic arts product. Beginning on
6July 1, 2017, graphic arts machinery and equipment is included
7in the manufacturing and assembling machinery and equipment
8exemption under Section 2 of this Act.
9    (6) Personal property sold by a teacher-sponsored student
10organization affiliated with an elementary or secondary school
11located in Illinois.
12    (7) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required
21to be registered under Section 3-809 of the Illinois Vehicle
22Code, but excluding other motor vehicles required to be
23registered under the Illinois Vehicle Code. Horticultural
24polyhouses or hoop houses used for propagating, growing, or
25overwintering plants shall be considered farm machinery and
26equipment under this item (7). Agricultural chemical tender

 

 

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1tanks and dry boxes shall include units sold separately from a
2motor vehicle required to be licensed and units sold mounted
3on a motor vehicle required to be licensed if the selling price
4of the tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment, including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals.
20    Beginning on January 1, 2024, farm machinery and equipment
21also includes electrical power generation equipment used
22primarily for production agriculture.
23    This item (7) is exempt from the provisions of Section
243-55.
25    (8) Until June 30, 2013, fuel and petroleum products sold
26to or used by an air common carrier, certified by the carrier

 

 

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1to be used for consumption, shipment, or storage in the
2conduct of its business as an air common carrier, for a flight
3destined for or returning from a location or locations outside
4the United States without regard to previous or subsequent
5domestic stopovers.
6    Beginning July 1, 2013, fuel and petroleum products sold
7to or used by an air carrier, certified by the carrier to be
8used for consumption, shipment, or storage in the conduct of
9its business as an air common carrier, for a flight that (i) is
10engaged in foreign trade or is engaged in trade between the
11United States and any of its possessions and (ii) transports
12at least one individual or package for hire from the city of
13origination to the city of final destination on the same
14aircraft, without regard to a change in the flight number of
15that aircraft.
16    (9) Proceeds of mandatory service charges separately
17stated on customers' bills for the purchase and consumption of
18food and beverages, to the extent that the proceeds of the
19service charge are in fact turned over as tips or as a
20substitute for tips to the employees who participate directly
21in preparing, serving, hosting or cleaning up the food or
22beverage function with respect to which the service charge is
23imposed.
24    (10) Until July 1, 2003, oil field exploration, drilling,
25and production equipment, including (i) rigs and parts of
26rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

 

 

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1pipe and tubular goods, including casing and drill strings,
2(iii) pumps and pump-jack units, (iv) storage tanks and flow
3lines, (v) any individual replacement part for oil field
4exploration, drilling, and production equipment, and (vi)
5machinery and equipment purchased for lease; but excluding
6motor vehicles required to be registered under the Illinois
7Vehicle Code.
8    (11) Photoprocessing machinery and equipment, including
9repair and replacement parts, both new and used, including
10that manufactured on special order, certified by the purchaser
11to be used primarily for photoprocessing, and including
12photoprocessing machinery and equipment purchased for lease.
13    (12) Until July 1, 2028, coal and aggregate exploration,
14mining, off-highway hauling, processing, maintenance, and
15reclamation equipment, including replacement parts and
16equipment, and including equipment purchased for lease, but
17excluding motor vehicles required to be registered under the
18Illinois Vehicle Code. The changes made to this Section by
19Public Act 97-767 apply on and after July 1, 2003, but no claim
20for credit or refund is allowed on or after August 16, 2013
21(the effective date of Public Act 98-456) for such taxes paid
22during the period beginning July 1, 2003 and ending on August
2316, 2013 (the effective date of Public Act 98-456).
24    (13) Beginning January 1, 1992 and through June 30, 2016,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

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1soft drinks and food that has been prepared for immediate
2consumption) and prescription and non-prescription medicines,
3drugs, medical appliances, and insulin, urine testing
4materials, syringes, and needles used by diabetics, for human
5use, when purchased for use by a person receiving medical
6assistance under Article V of the Illinois Public Aid Code who
7resides in a licensed long-term care facility, as defined in
8the Nursing Home Care Act, or in a licensed facility as defined
9in the ID/DD Community Care Act, the MC/DD Act, or the
10Specialized Mental Health Rehabilitation Act of 2013.
11    (14) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (15) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (15) is exempt from the
19provisions of Section 3-55, and the exemption provided for
20under this item (15) applies for all periods beginning May 30,
211995, but no claim for credit or refund is allowed on or after
22January 1, 2008 (the effective date of Public Act 95-88) for
23such taxes paid during the period beginning May 30, 2000 and
24ending on January 1, 2008 (the effective date of Public Act
2595-88).
26    (16) Computers and communications equipment utilized for

 

 

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1any hospital purpose and equipment used in the diagnosis,
2analysis, or treatment of hospital patients sold to a lessor
3who leases the equipment, under a lease of one year or longer
4executed or in effect at the time of the purchase, to a
5hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act.
8    (17) Personal property sold to a lessor who leases the
9property, under a lease of one year or longer executed or in
10effect at the time of the purchase, to a governmental body that
11has been issued an active tax exemption identification number
12by the Department under Section 1g of the Retailers'
13Occupation Tax Act.
14    (18) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated
17for disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24    (19) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in

 

 

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1the performance of infrastructure repairs in this State,
2including, but not limited to, municipal roads and streets,
3access roads, bridges, sidewalks, waste disposal systems,
4water and sewer line extensions, water distribution and
5purification facilities, storm water drainage and retention
6facilities, and sewage treatment facilities, resulting from a
7State or federally declared disaster in Illinois or bordering
8Illinois when such repairs are initiated on facilities located
9in the declared disaster area within 6 months after the
10disaster.
11    (20) Beginning July 1, 1999, game or game birds sold at a
12"game breeding and hunting preserve area" as that term is used
13in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-55.
15    (21) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the
19Department to be organized and operated exclusively for
20educational purposes. For purposes of this exemption, "a
21corporation, limited liability company, society, association,
22foundation, or institution organized and operated exclusively
23for educational purposes" means all tax-supported public
24schools, private schools that offer systematic instruction in
25useful branches of learning by methods common to public
26schools and that compare favorably in their scope and

 

 

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1intensity with the course of study presented in tax-supported
2schools, and vocational or technical schools or institutes
3organized and operated exclusively to provide a course of
4study of not less than 6 weeks duration and designed to prepare
5individuals to follow a trade or to pursue a manual,
6technical, mechanical, industrial, business, or commercial
7occupation.
8    (22) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-55.
22    (23) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and
25other items, and replacement parts for these machines.
26Beginning January 1, 2002 and through June 30, 2003, machines

 

 

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1and parts for machines used in commercial, coin-operated
2amusement and vending business if a use or occupation tax is
3paid on the gross receipts derived from the use of the
4commercial, coin-operated amusement and vending machines. This
5paragraph is exempt from the provisions of Section 3-55.
6    (24) Beginning on August 2, 2001 (the effective date of
7Public Act 92-227), computers and communications equipment
8utilized for any hospital purpose and equipment used in the
9diagnosis, analysis, or treatment of hospital patients sold to
10a lessor who leases the equipment, under a lease of one year or
11longer executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. This paragraph is exempt
15from the provisions of Section 3-55.
16    (25) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), personal property sold to a lessor who
18leases the property, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20governmental body that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. This paragraph is exempt
23from the provisions of Section 3-55.
24    (26) Beginning on January 1, 2002 and through June 30,
252016, tangible personal property purchased from an Illinois
26retailer by a taxpayer engaged in centralized purchasing

 

 

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1activities in Illinois who will, upon receipt of the property
2in Illinois, temporarily store the property in Illinois (i)
3for the purpose of subsequently transporting it outside this
4State for use or consumption thereafter solely outside this
5State or (ii) for the purpose of being processed, fabricated,
6or manufactured into, attached to, or incorporated into other
7tangible personal property to be transported outside this
8State and thereafter used or consumed solely outside this
9State. The Director of Revenue shall, pursuant to rules
10adopted in accordance with the Illinois Administrative
11Procedure Act, issue a permit to any taxpayer in good standing
12with the Department who is eligible for the exemption under
13this paragraph (26). The permit issued under this paragraph
14(26) shall authorize the holder, to the extent and in the
15manner specified in the rules adopted under this Act, to
16purchase tangible personal property from a retailer exempt
17from the taxes imposed by this Act. Taxpayers shall maintain
18all necessary books and records to substantiate the use and
19consumption of all such tangible personal property outside of
20the State of Illinois.
21    (27) Beginning January 1, 2008, tangible personal property
22used in the construction or maintenance of a community water
23supply, as defined under Section 3.145 of the Environmental
24Protection Act, that is operated by a not-for-profit
25corporation that holds a valid water supply permit issued
26under Title IV of the Environmental Protection Act. This

 

 

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1paragraph is exempt from the provisions of Section 3-55.
2    (28) Tangible personal property sold to a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt
11instruments issued by the public-facilities corporation in
12connection with the development of the municipal convention
13hall. This exemption includes existing public-facilities
14corporations as provided in Section 11-65-25 of the Illinois
15Municipal Code. This paragraph is exempt from the provisions
16of Section 3-55.
17    (29) Beginning January 1, 2010 and continuing through
18December 31, 2029, materials, parts, equipment, components,
19and furnishings incorporated into or upon an aircraft as part
20of the modification, refurbishment, completion, replacement,
21repair, or maintenance of the aircraft. This exemption
22includes consumable supplies used in the modification,
23refurbishment, completion, replacement, repair, and
24maintenance of aircraft. However, until January 1, 2024, this
25exemption excludes any materials, parts, equipment,
26components, and consumable supplies used in the modification,

 

 

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1replacement, repair, and maintenance of aircraft engines or
2power plants, whether such engines or power plants are
3installed or uninstalled upon any such aircraft. "Consumable
4supplies" include, but are not limited to, adhesive, tape,
5sandpaper, general purpose lubricants, cleaning solution,
6latex gloves, and protective films.
7    Beginning January 1, 2010 and continuing through December
831, 2023, this exemption applies only to the transfer of
9qualifying tangible personal property incident to the
10modification, refurbishment, completion, replacement, repair,
11or maintenance of an aircraft by persons who (i) hold an Air
12Agency Certificate and are empowered to operate an approved
13repair station by the Federal Aviation Administration, (ii)
14have a Class IV Rating, and (iii) conduct operations in
15accordance with Part 145 of the Federal Aviation Regulations.
16The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part
19129 of the Federal Aviation Regulations. From January 1, 2024
20through December 31, 2029, this exemption applies only to the
21use of qualifying tangible personal property by: (A) persons
22who modify, refurbish, complete, repair, replace, or maintain
23aircraft and who (i) hold an Air Agency Certificate and are
24empowered to operate an approved repair station by the Federal
25Aviation Administration, (ii) have a Class IV Rating, and
26(iii) conduct operations in accordance with Part 145 of the

 

 

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1Federal Aviation Regulations; and (B) persons who engage in
2the modification, replacement, repair, and maintenance of
3aircraft engines or power plants without regard to whether or
4not those persons meet the qualifications of item (A).
5    The changes made to this paragraph (29) by Public Act
698-534 are declarative of existing law. It is the intent of the
7General Assembly that the exemption under this paragraph (29)
8applies continuously from January 1, 2010 through December 31,
92024; however, no claim for credit or refund is allowed for
10taxes paid as a result of the disallowance of this exemption on
11or after January 1, 2015 and prior to February 5, 2020 (the
12effective date of Public Act 101-629).
13    (30) Beginning January 1, 2017 and through December 31,
142026, menstrual pads, tampons, and menstrual cups.
15    (31) Tangible personal property transferred to a purchaser
16who is exempt from tax by operation of federal law. This
17paragraph is exempt from the provisions of Section 3-55.
18    (32) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had Public Act 101-31 been in effect, may apply for and

 

 

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1obtain an exemption for subsequent purchases of computer
2equipment or enabling software purchased or leased to upgrade,
3supplement, or replace computer equipment or enabling software
4purchased or leased in the original investment that would have
5qualified.
6    The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (32) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    For the purposes of this item (32):
12        "Data center" means a building or a series of
13    buildings rehabilitated or constructed to house working
14    servers in one physical location or multiple sites within
15    the State of Illinois.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and secure systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated into in to the qualifying data center. To
13    document the exemption allowed under this Section, the
14    retailer must obtain from the purchaser a copy of the
15    certificate of eligibility issued by the Department of
16    Commerce and Economic Opportunity.
17    This item (32) is exempt from the provisions of Section
183-55.
19    (33) Beginning July 1, 2022, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (33) is exempt from the provisions of Section 3-55. As
22used in this item (33):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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1    other power supply unit that is used to power the pump
2    device and is packaged and sold with the pump device at the
3    time of sale.
4        "Breast pump collection and storage supplies" means
5    items of tangible personal property designed or marketed
6    to be used in conjunction with a breast pump to collect
7    milk expressed from a human breast and to store collected
8    milk until it is ready for consumption.
9        "Breast pump collection and storage supplies"
10    includes, but is not limited to: breast shields and breast
11    shield connectors; breast pump tubes and tubing adapters;
12    breast pump valves and membranes; backflow protectors and
13    backflow protector adaptors; bottles and bottle caps
14    specific to the operation of the breast pump; and breast
15    milk storage bags.
16        "Breast pump collection and storage supplies" does not
17    include: (1) bottles and bottle caps not specific to the
18    operation of the breast pump; (2) breast pump travel bags
19    and other similar carrying accessories, including ice
20    packs, labels, and other similar products; (3) breast pump
21    cleaning supplies; (4) nursing bras, bra pads, breast
22    shells, and other similar products; and (5) creams,
23    ointments, and other similar products that relieve
24    breastfeeding-related symptoms or conditions of the
25    breasts or nipples, unless sold as part of a breast pump
26    kit that is pre-packaged by the breast pump manufacturer

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9    (34) Tangible personal property sold by or on behalf of
10the State Treasurer pursuant to the Revised Uniform Unclaimed
11Property Act. This item (34) is exempt from the provisions of
12Section 3-55.
13    (35) Beginning on January 1, 2024, tangible personal
14property purchased by an active duty member of the armed
15forces of the United States who presents valid military
16identification and purchases the property using a form of
17payment where the federal government is the payor. The member
18of the armed forces must complete, at the point of sale, a form
19prescribed by the Department of Revenue documenting that the
20transaction is eligible for the exemption under this
21paragraph. Retailers must keep the form as documentation of
22the exemption in their records for a period of not less than 6
23years. "Armed forces of the United States" means the United
24States Army, Navy, Air Force, Marine Corps, or Coast Guard.
25This paragraph is exempt from the provisions of Section 3-55.
26    (36) Beginning on July 1, 2024, as defined in Section

 

 

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13-10, food prepared for immediate consumption and transferred
2incident to a sale of service subject to this Act or the
3Service Occupation Tax Act by an entity licensed under the
4Hospital Licensing Act, the Nursing Home Care Act, the
5Assisted Living and Shared Housing Act, the ID/DD Community
6Care Act, the MC/DD Act, the Specialized Mental Health
7Rehabilitation Act of 2013, or the Child Care Act of 1969, or
8an entity that holds a permit issued pursuant to the Life Care
9Facilities Act. This item (36) is exempt from the provisions
10of Section 3-55.
11    (37) Beginning on July 1, 2024, as defined in Section
123-10, food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14food consisting of or infused with adult use cannabis, soft
15drinks, and food that has been prepared for immediate
16consumption). This item (37) is exempt from the provisions of
17Section 3-55.
18    (38) Beginning on July 1, 2024, the following items, as
19defined in Section 3-10:
20        (A) prescription and nonprescription medicines, drugs,
21    and medical appliances;
22        (B) products classified as Class III medical devices
23    by the United States Food and Drug Administration that are
24    used for cancer treatment pursuant to a prescription, as
25    well as any accessories and components related to those
26    devices;

 

 

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1        (C) modifications to a motor vehicle for the purpose
2    of rendering it usable by a person with a disability; and
3        (D) insulin, blood sugar testing materials, syringes,
4    and needles used by human diabetics.
5    This item (38) is exempt from the provisions of Section
6    3-55.
7(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
8Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
975-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
10Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
11eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
12revised 12-12-23.)
 
13    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16the "selling price", as defined in Section 2 of the Service Use
17Tax Act, of the tangible personal property. For the purpose of
18computing this tax, in no event shall the "selling price" be
19less than the cost price to the serviceman of the tangible
20personal property transferred. The selling price of each item
21of tangible personal property transferred as an incident of a
22sale of service may be shown as a distinct and separate item on
23the serviceman's billing to the service customer. If the
24selling price is not so shown, the selling price of the
25tangible personal property is deemed to be 50% of the

 

 

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1serviceman's entire billing to the service customer. When,
2however, a serviceman contracts to design, develop, and
3produce special order machinery or equipment, the tax imposed
4by this Act shall be based on the serviceman's cost price of
5the tangible personal property transferred incident to the
6completion of the contract.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act shall apply to (i) 70% of the cost
13price of property transferred as an incident to the sale of
14service on or after January 1, 1990, and before July 1, 2003,
15(ii) 80% of the selling price of property transferred as an
16incident to the sale of service on or after July 1, 2003 and on
17or before July 1, 2017, (iii) 100% of the selling price of
18property transferred as an incident to the sale of service
19after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
20the selling price of property transferred as an incident to
21the sale of service on or after January 1, 2024 and on or
22before December 31, 2028, and (v) 100% of the selling price of
23property transferred as an incident to the sale of service
24after December 31, 2028. If, at any time, however, the tax
25under this Act on sales of gasohol, as defined in the Use Tax
26Act, is imposed at the rate of 1.25%, then the tax imposed by

 

 

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1this Act applies to 100% of the proceeds of sales of gasohol
2made during that time.
3    With respect to mid-range ethanol blends, as defined in
4Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
5applies to (i) 80% of the selling price of property
6transferred as an incident to the sale of service on or after
7January 1, 2024 and on or before December 31, 2028 and (ii)
8100% of the selling price of property transferred as an
9incident to the sale of service after December 31, 2028. If, at
10any time, however, the tax under this Act on sales of mid-range
11ethanol blends is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the selling price of
13mid-range ethanol blends transferred as an incident to the
14sale of service during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2028 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use
22Tax Act, with no less than 1% and no more than 10% biodiesel,
23the tax imposed by this Act applies to (i) 80% of the selling
24price of property transferred as an incident to the sale of
25service on or after July 1, 2003 and on or before December 31,
262018 and (ii) 100% of the proceeds of the selling price after

 

 

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1December 31, 2018 and before January 1, 2024. On and after
2January 1, 2024 and on or before December 31, 2030, the
3taxation of biodiesel, renewable diesel, and biodiesel blends
4shall be as provided in Section 3-5.1 of the Use Tax Act. If,
5at any time, however, the tax under this Act on sales of
6biodiesel blends, as defined in the Use Tax Act, with no less
7than 1% and no more than 10% biodiesel is imposed at the rate
8of 1.25%, then the tax imposed by this Act applies to 100% of
9the proceeds of sales of biodiesel blends with no less than 1%
10and no more than 10% biodiesel made during that time.
11    With respect to biodiesel, as defined in the Use Tax Act,
12and biodiesel blends, as defined in the Use Tax Act, with more
13than 10% but no more than 99% biodiesel material, the tax
14imposed by this Act does not apply to the proceeds of the
15selling price of property transferred as an incident to the
16sale of service on or after July 1, 2003 and on or before
17December 31, 2023. On and after January 1, 2024 and on or
18before December 31, 2030, the taxation of biodiesel, renewable
19diesel, and biodiesel blends shall be as provided in Section
203-5.1 of the Use Tax Act.
21    At the election of any registered serviceman made for each
22fiscal year, sales of service in which the aggregate annual
23cost price of tangible personal property transferred as an
24incident to the sales of service is less than 35%, or 75% in
25the case of servicemen transferring prescription drugs or
26servicemen engaged in graphic arts production, of the

 

 

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1aggregate annual total gross receipts from all sales of
2service, the tax imposed by this Act shall be based on the
3serviceman's cost price of the tangible personal property
4transferred incident to the sale of those services.
5    Until July 1, 2022 and from beginning again on July 1, 2023
6through June 30, 2024, the tax shall be imposed at the rate of
71% on food prepared for immediate consumption and transferred
8incident to a sale of service subject to this Act or the
9Service Use Tax Act by an entity licensed under the Hospital
10Licensing Act, the Nursing Home Care Act, the Assisted Living
11and Shared Housing Act, the ID/DD Community Care Act, the
12MC/DD Act, the Specialized Mental Health Rehabilitation Act of
132013, or the Child Care Act of 1969, or an entity that holds a
14permit issued pursuant to the Life Care Facilities Act. Until
15July 1, 2022 and from beginning again on July 1, 2023 through
16June 30, 2024, the tax shall also be imposed at the rate of 1%
17on food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19food consisting of or infused with adult use cannabis, soft
20drinks, and food that has been prepared for immediate
21consumption and is not otherwise included in this paragraph).
22    Beginning on July 1, 2022 and until July 1, 2023, the tax
23shall be imposed at the rate of 0% on food prepared for
24immediate consumption and transferred incident to a sale of
25service subject to this Act or the Service Use Tax Act by an
26entity licensed under the Hospital Licensing Act, the Nursing

 

 

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1Home Care Act, the Assisted Living and Shared Housing Act, the
2ID/DD Community Care Act, the MC/DD Act, the Specialized
3Mental Health Rehabilitation Act of 2013, or the Child Care
4Act of 1969, or an entity that holds a permit issued pursuant
5to the Life Care Facilities Act. Beginning July 1, 2022 and
6until July 1, 2023, the tax shall also be imposed at the rate
7of 0% on food for human consumption that is to be consumed off
8the premises where it is sold (other than alcoholic beverages,
9food consisting of or infused with adult use cannabis, soft
10drinks, and food that has been prepared for immediate
11consumption and is not otherwise included in this paragraph).
12    Through June 30, 2024, the The tax shall also be imposed at
13the rate of 1% on prescription and nonprescription medicines,
14drugs, medical appliances, products classified as Class III
15medical devices by the United States Food and Drug
16Administration that are used for cancer treatment pursuant to
17a prescription, as well as any accessories and components
18related to those devices, modifications to a motor vehicle for
19the purpose of rendering it usable by a person with a
20disability, and insulin, blood sugar testing materials,
21syringes, and needles used by human diabetics. For the
22purposes of this Section, until September 1, 2009: the term
23"soft drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including, but
25not limited to, soda water, cola, fruit juice, vegetable
26juice, carbonated water, and all other preparations commonly

 

 

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1known as soft drinks of whatever kind or description that are
2contained in any closed or sealed can, carton, or container,
3regardless of size; but "soft drinks" does not include coffee,
4tea, non-carbonated water, infant formula, milk or milk
5products as defined in the Grade A Pasteurized Milk and Milk
6Products Act, or drinks containing 50% or more natural fruit
7or vegetable juice.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "soft drinks" means non-alcoholic
10beverages that contain natural or artificial sweeteners. "Soft
11drinks" does not include beverages that contain milk or milk
12products, soy, rice or similar milk substitutes, or greater
13than 50% of vegetable or fruit juice by volume.
14    Until August 1, 2009, and notwithstanding any other
15provisions of this Act, "food for human consumption that is to
16be consumed off the premises where it is sold" includes all
17food sold through a vending machine, except soft drinks and
18food products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine. Beginning
20August 1, 2009, and notwithstanding any other provisions of
21this Act, "food for human consumption that is to be consumed
22off the premises where it is sold" includes all food sold
23through a vending machine, except soft drinks, candy, and food
24products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "food for human consumption that
2is to be consumed off the premises where it is sold" does not
3include candy. For purposes of this Section, "candy" means a
4preparation of sugar, honey, or other natural or artificial
5sweeteners in combination with chocolate, fruits, nuts or
6other ingredients or flavorings in the form of bars, drops, or
7pieces. "Candy" does not include any preparation that contains
8flour or requires refrigeration.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "nonprescription medicines and
11drugs" does not include grooming and hygiene products. For
12purposes of this Section, "grooming and hygiene products"
13includes, but is not limited to, soaps and cleaning solutions,
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15lotions and screens, unless those products are available by
16prescription only, regardless of whether the products meet the
17definition of "over-the-counter-drugs". For the purposes of
18this paragraph, "over-the-counter-drug" means a drug for human
19use that contains a label that identifies the product as a drug
20as required by 21 CFR 201.66. The "over-the-counter-drug"
21label includes:
22        (A) a "Drug Facts" panel; or
23        (B) a statement of the "active ingredient(s)" with a
24    list of those ingredients contained in the compound,
25    substance or preparation.
26    Beginning on January 1, 2014 (the effective date of Public

 

 

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1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Program Act.
5    As used in this Section, "adult use cannabis" means
6cannabis subject to tax under the Cannabis Cultivation
7Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
8and does not include cannabis subject to tax under the
9Compassionate Use of Medical Cannabis Program Act.
10(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
11102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
12Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
13103-154, eff. 6-30-23.)
 
14    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax at the time when he is required to file his return
18for the period during which such tax was collectible, less a
19discount of 2.1% prior to January 1, 1990, and 1.75% on and
20after January 1, 1990, or $5 per calendar year, whichever is
21greater, which is allowed to reimburse the serviceman for
22expenses incurred in collecting the tax, keeping records,
23preparing and filing returns, remitting the tax, and supplying
24data to the Department on request. When determining the
25discount allowed under this Section, servicemen shall include

 

 

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1the amount of tax that would have been due at the 1% rate but
2for the 0% rate imposed under Public Act 102-700 this
3amendatory Act of the 102nd General Assembly. The discount
4under this Section is not allowed for the 1.25% portion of
5taxes paid on aviation fuel that is subject to the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
7discount allowed under this Section is allowed only for
8returns that are filed in the manner required by this Act. The
9Department may disallow the discount for servicemen whose
10certificate of registration is revoked at the time the return
11is filed, but only if the Department's decision to revoke the
12certificate of registration has become final.
13    Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the serviceman, in collecting the tax may collect, for
18each tax return period, only the tax applicable to the part of
19the selling price actually received during such tax return
20period.
21    Except as provided hereinafter in this Section, on or
22before the twentieth day of each calendar month, such
23serviceman shall file a return for the preceding calendar
24month in accordance with reasonable rules and regulations to
25be promulgated by the Department of Revenue. Such return shall
26be filed on a form prescribed by the Department and shall

 

 

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1contain such information as the Department may reasonably
2require. The return shall include the gross receipts which
3were received during the preceding calendar month or quarter
4on the following items upon which tax would have been due but
5for the 0% rate imposed under Public Act 102-700 this
6amendatory Act of the 102nd General Assembly: (i) food for
7human consumption that is to be consumed off the premises
8where it is sold (other than alcoholic beverages, food
9consisting of or infused with adult use cannabis, soft drinks,
10and food that has been prepared for immediate consumption);
11and (ii) food prepared for immediate consumption and
12transferred incident to a sale of service subject to this Act
13or the Service Use Tax Act by an entity licensed under the
14Hospital Licensing Act, the Nursing Home Care Act, the
15Assisted Living and Shared Housing Act, the ID/DD Community
16Care Act, the MC/DD Act, the Specialized Mental Health
17Rehabilitation Act of 2013, or the Child Care Act of 1969, or
18an entity that holds a permit issued pursuant to the Life Care
19Facilities Act. The return shall also include the amount of
20tax that would have been due on the items listed in the
21previous sentence but for the 0% rate imposed under Public Act
22102-700 this amendatory Act of the 102nd General Assembly.
23    On and after January 1, 2018, with respect to servicemen
24whose annual gross receipts average $20,000 or more, all
25returns required to be filed pursuant to this Act shall be
26filed electronically. Servicemen who demonstrate that they do

 

 

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1not have access to the Internet or demonstrate hardship in
2filing electronically may petition the Department to waive the
3electronic filing requirement.
4    The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11        1. The name of the seller;
12        2. The address of the principal place of business from
13    which he engages in business as a serviceman in this
14    State;
15        3. The total amount of taxable receipts received by
16    him during the preceding calendar month, including
17    receipts from charge and time sales, but less all
18    deductions allowed by law;
19        4. The amount of credit provided in Section 2d of this
20    Act;
21        5. The amount of tax due;
22        5-5. The signature of the taxpayer; and
23        6. Such other reasonable information as the Department
24    may require.
25    Each serviceman required or authorized to collect the tax
26herein imposed on aviation fuel acquired as an incident to the

 

 

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1purchase of a service in this State during the preceding
2calendar month shall, instead of reporting and paying tax as
3otherwise required by this Section, report and pay such tax on
4a separate aviation fuel tax return. The requirements related
5to the return shall be as otherwise provided in this Section.
6Notwithstanding any other provisions of this Act to the
7contrary, servicemen transferring aviation fuel incident to
8sales of service shall file all aviation fuel tax returns and
9shall make all aviation fuel tax payments by electronic means
10in the manner and form required by the Department. For
11purposes of this Section, "aviation fuel" means jet fuel and
12aviation gasoline.
13    If a taxpayer fails to sign a return within 30 days after
14the proper notice and demand for signature by the Department,
15the return shall be considered valid and any amount shown to be
16due on the return shall be deemed assessed.
17    Notwithstanding any other provision of this Act to the
18contrary, servicemen subject to tax on cannabis shall file all
19cannabis tax returns and shall make all cannabis tax payments
20by electronic means in the manner and form required by the
21Department.
22    Prior to October 1, 2003, and on and after September 1,
232004 a serviceman may accept a Manufacturer's Purchase Credit
24certification from a purchaser in satisfaction of Service Use
25Tax as provided in Section 3-70 of the Service Use Tax Act if
26the purchaser provides the appropriate documentation as

 

 

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1required by Section 3-70 of the Service Use Tax Act. A
2Manufacturer's Purchase Credit certification, accepted prior
3to October 1, 2003 or on or after September 1, 2004 by a
4serviceman as provided in Section 3-70 of the Service Use Tax
5Act, may be used by that serviceman to satisfy Service
6Occupation Tax liability in the amount claimed in the
7certification, not to exceed 6.25% of the receipts subject to
8tax from a qualifying purchase. A Manufacturer's Purchase
9Credit reported on any original or amended return filed under
10this Act after October 20, 2003 for reporting periods prior to
11September 1, 2004 shall be disallowed. Manufacturer's Purchase
12Credit reported on annual returns due on or after January 1,
132005 will be disallowed for periods prior to September 1,
142004. No Manufacturer's Purchase Credit may be used after
15September 30, 2003 through August 31, 2004 to satisfy any tax
16liability imposed under this Act, including any audit
17liability.
18    Beginning on July 1, 2023 and through December 31, 2032, a
19serviceman may accept a Sustainable Aviation Fuel Purchase
20Credit certification from an air common carrier-purchaser in
21satisfaction of Service Use Tax as provided in Section 3-72 of
22the Service Use Tax Act if the purchaser provides the
23appropriate documentation as required by Section 3-72 of the
24Service Use Tax Act. A Sustainable Aviation Fuel Purchase
25Credit certification accepted by a serviceman in accordance
26with this paragraph may be used by that serviceman to satisfy

 

 

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1service occupation tax liability (but not in satisfaction of
2penalty or interest) in the amount claimed in the
3certification, not to exceed 6.25% of the receipts subject to
4tax from a sale of aviation fuel. In addition, for a sale of
5aviation fuel to qualify to earn the Sustainable Aviation Fuel
6Purchase Credit, servicemen must retain in their books and
7records a certification from the producer of the aviation fuel
8that the aviation fuel sold by the serviceman and for which a
9sustainable aviation fuel purchase credit was earned meets the
10definition of sustainable aviation fuel under Section 3-72 of
11the Service Use Tax Act. The documentation must include detail
12sufficient for the Department to determine the number of
13gallons of sustainable aviation fuel sold.
14    If the serviceman's average monthly tax liability to the
15Department does not exceed $200, the Department may authorize
16his returns to be filed on a quarter annual basis, with the
17return for January, February, and March of a given year being
18due by April 20 of such year; with the return for April, May,
19and June of a given year being due by July 20 of such year;
20with the return for July, August, and September of a given year
21being due by October 20 of such year, and with the return for
22October, November, and December of a given year being due by
23January 20 of the following year.
24    If the serviceman's average monthly tax liability to the
25Department does not exceed $50, the Department may authorize
26his returns to be filed on an annual basis, with the return for

 

 

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1a given year being due by January 20 of the following year.
2    Such quarter annual and annual returns, as to form and
3substance, shall be subject to the same requirements as
4monthly returns.
5    Notwithstanding any other provision in this Act concerning
6the time within which a serviceman may file his return, in the
7case of any serviceman who ceases to engage in a kind of
8business which makes him responsible for filing returns under
9this Act, such serviceman shall file a final return under this
10Act with the Department not more than one 1 month after
11discontinuing such business.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall
17make all payments required by rules of the Department by
18electronic funds transfer. Beginning October 1, 1995, a
19taxpayer who has an average monthly tax liability of $50,000
20or more shall make all payments required by rules of the
21Department by electronic funds transfer. Beginning October 1,
222000, a taxpayer who has an annual tax liability of $200,000 or
23more shall make all payments required by rules of the
24Department by electronic funds transfer. The term "annual tax
25liability" shall be the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

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1and use tax laws administered by the Department, for the
2immediately preceding calendar year. The term "average monthly
3tax liability" means the sum of the taxpayer's liabilities
4under this Act, and under all other State and local occupation
5and use tax laws administered by the Department, for the
6immediately preceding calendar year divided by 12. Beginning
7on October 1, 2002, a taxpayer who has a tax liability in the
8amount set forth in subsection (b) of Section 2505-210 of the
9Department of Revenue Law shall make all payments required by
10rules of the Department by electronic funds transfer.
11    Before August 1 of each year beginning in 1993, the
12Department shall notify all taxpayers required to make
13payments by electronic funds transfer. All taxpayers required
14to make payments by electronic funds transfer shall make those
15payments for a minimum of one year beginning on October 1.
16    Any taxpayer not required to make payments by electronic
17funds transfer may make payments by electronic funds transfer
18with the permission of the Department.
19    All taxpayers required to make payment by electronic funds
20transfer and any taxpayers authorized to voluntarily make
21payments by electronic funds transfer shall make those
22payments in the manner authorized by the Department.
23    The Department shall adopt such rules as are necessary to
24effectuate a program of electronic funds transfer and the
25requirements of this Section.
26    Where a serviceman collects the tax with respect to the

 

 

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1selling price of tangible personal property which he sells and
2the purchaser thereafter returns such tangible personal
3property and the serviceman refunds the selling price thereof
4to the purchaser, such serviceman shall also refund, to the
5purchaser, the tax so collected from the purchaser. When
6filing his return for the period in which he refunds such tax
7to the purchaser, the serviceman may deduct the amount of the
8tax so refunded by him to the purchaser from any other Service
9Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
10Use Tax which such serviceman may be required to pay or remit
11to the Department, as shown by such return, provided that the
12amount of the tax to be deducted shall previously have been
13remitted to the Department by such serviceman. If the
14serviceman shall not previously have remitted the amount of
15such tax to the Department, he shall be entitled to no
16deduction hereunder upon refunding such tax to the purchaser.
17    If experience indicates such action to be practicable, the
18Department may prescribe and furnish a combination or joint
19return which will enable servicemen, who are required to file
20returns hereunder and also under the Retailers' Occupation Tax
21Act, the Use Tax Act, or the Service Use Tax Act, to furnish
22all the return information required by all said Acts on the one
23form.
24    Where the serviceman has more than one business registered
25with the Department under separate registrations hereunder,
26such serviceman shall file separate returns for each

 

 

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1registered business.
2    Beginning January 1, 1990 and until August 1, 2024, each
3month the Department shall pay into the Local Government Tax
4Fund the revenue realized for the preceding month from the 1%
5tax imposed under this Act.
6    Beginning August 1, 2024, the State Comptroller shall
7order transferred and the State Treasurer shall transfer from
8the General Revenue Fund to the Local Government Tax Fund, the
9amount deposited into the Local Government Tax Fund for the
10same month in calendar year 2021 from items that were subject
11to a 1% rate of tax in calendar year 2021. On August 1 of each
12year thereafter, the amount transferred from the General
13Revenue Fund to the Local Government Tax Fund under this
14paragraph shall be increased by the percentage change, if any,
15in the Consumer Price Index for All Urban Consumers as issued
16by the United States Department of Labor for the most recent
1712-month period for which data is available.
18    Beginning January 1, 1990, each month the Department shall
19pay into the County and Mass Transit District Fund 4% of the
20revenue realized for the preceding month from the 6.25%
21general rate on sales of tangible personal property other than
22aviation fuel sold on or after December 1, 2019. This
23exception for aviation fuel only applies for so long as the
24revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2547133 are binding on the State.
26    Beginning August 1, 2000, each month the Department shall

 

 

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1pay into the County and Mass Transit District Fund 20% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund 16% of the revenue
6realized for the preceding month from the 6.25% general rate
7on transfers of tangible personal property other than aviation
8fuel sold on or after December 1, 2019. This exception for
9aviation fuel only applies for so long as the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11binding on the State.
12    For aviation fuel sold on or after December 1, 2019, each
13month the Department shall pay into the State Aviation Program
14Fund 20% of the net revenue realized for the preceding month
15from the 6.25% general rate on the selling price of aviation
16fuel, less an amount estimated by the Department to be
17required for refunds of the 20% portion of the tax on aviation
18fuel under this Act, which amount shall be deposited into the
19Aviation Fuel Sales Tax Refund Fund. The Department shall only
20pay moneys into the State Aviation Program Fund and the
21Aviation Fuel Sales Tax Refund Fund under this Act for so long
22as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

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1selling price of motor fuel and gasohol.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8are now taxed at 6.25%.
9    Beginning July 1, 2013, each month the Department shall
10pay into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Retailers' Occupation Tax Act an amount equal to
13the average monthly deficit in the Underground Storage Tank
14Fund during the prior year, as certified annually by the
15Illinois Environmental Protection Agency, but the total
16payment into the Underground Storage Tank Fund under this Act,
17the Use Tax Act, the Service Use Tax Act, and the Retailers'
18Occupation Tax Act shall not exceed $18,000,000 in any State
19fiscal year. As used in this paragraph, the "average monthly
20deficit" shall be equal to the difference between the average
21monthly claims for payment by the fund and the average monthly
22revenues deposited into the fund, excluding payments made
23pursuant to this paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, the Service
26Use Tax Act, this Act, and the Retailers' Occupation Tax Act,

 

 

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1each month the Department shall deposit $500,000 into the
2State Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to Section 3
11of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
12Act, Section 9 of the Service Use Tax Act, and Section 9 of the
13Service Occupation Tax Act, such Acts being hereinafter called
14the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
15may be, of moneys being hereinafter called the "Tax Act
16Amount", and (2) the amount transferred to the Build Illinois
17Fund from the State and Local Sales Tax Reform Fund shall be
18less than the Annual Specified Amount (as defined in Section 3
19of the Retailers' Occupation Tax Act), an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and further provided, that if on the last
23business day of any month the sum of (1) the Tax Act Amount
24required to be deposited into the Build Illinois Account in
25the Build Illinois Fund during such month and (2) the amount
26transferred during such month to the Build Illinois Fund from

 

 

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1the State and Local Sales Tax Reform Fund shall have been less
2than 1/12 of the Annual Specified Amount, an amount equal to
3the difference shall be immediately paid into the Build
4Illinois Fund from other moneys received by the Department
5pursuant to the Tax Acts; and, further provided, that in no
6event shall the payments required under the preceding proviso
7result in aggregate payments into the Build Illinois Fund
8pursuant to this clause (b) for any fiscal year in excess of
9the greater of (i) the Tax Act Amount or (ii) the Annual
10Specified Amount for such fiscal year; and, further provided,
11that the amounts payable into the Build Illinois Fund under
12this clause (b) shall be payable only until such time as the
13aggregate amount on deposit under each trust indenture
14securing Bonds issued and outstanding pursuant to the Build
15Illinois Bond Act is sufficient, taking into account any
16future investment income, to fully provide, in accordance with
17such indenture, for the defeasance of or the payment of the
18principal of, premium, if any, and interest on the Bonds
19secured by such indenture and on any Bonds expected to be
20issued thereafter and all fees and costs payable with respect
21thereto, all as certified by the Director of the Bureau of the
22Budget (now Governor's Office of Management and Budget). If on
23the last business day of any month in which Bonds are
24outstanding pursuant to the Build Illinois Bond Act, the
25aggregate of the moneys deposited in the Build Illinois Bond
26Account in the Build Illinois Fund in such month shall be less

 

 

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1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois
7Fund; provided, however, that any amounts paid to the Build
8Illinois Fund in any fiscal year pursuant to this sentence
9shall be deemed to constitute payments pursuant to clause (b)
10of the preceding sentence and shall reduce the amount
11otherwise payable for such fiscal year pursuant to clause (b)
12of the preceding sentence. The moneys received by the
13Department pursuant to this Act and required to be deposited
14into the Build Illinois Fund are subject to the pledge, claim
15and charge set forth in Section 12 of the Build Illinois Bond
16Act.
17    Subject to payment of amounts into the Build Illinois Fund
18as provided in the preceding paragraph or in any amendment
19thereto hereafter enacted, the following specified monthly
20installment of the amount requested in the certificate of the
21Chairman of the Metropolitan Pier and Exposition Authority
22provided under Section 8.25f of the State Finance Act, but not
23in excess of the sums designated as "Total Deposit", shall be
24deposited in the aggregate from collections under Section 9 of
25the Use Tax Act, Section 9 of the Service Use Tax Act, Section
269 of the Service Occupation Tax Act, and Section 3 of the

 

 

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1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
 
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000

 

 

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12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021300,000,000
82022300,000,000
92023300,000,000
102024 300,000,000
112025 300,000,000
122026 300,000,000
132027 375,000,000
142028 375,000,000
152029 375,000,000
162030 375,000,000
172031 375,000,000
182032 375,000,000
192033 375,000,000
202034375,000,000
212035375,000,000
222036450,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

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1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total
17Deposit", has been deposited.
18    Subject to payment of amounts into the Capital Projects
19Fund, the Build Illinois Fund, and the McCormick Place
20Expansion Project Fund pursuant to the preceding paragraphs or
21in any amendments thereto hereafter enacted, for aviation fuel
22sold on or after December 1, 2019, the Department shall each
23month deposit into the Aviation Fuel Sales Tax Refund Fund an
24amount estimated by the Department to be required for refunds
25of the 80% portion of the tax on aviation fuel under this Act.
26The Department shall only deposit moneys into the Aviation

 

 

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1Fuel Sales Tax Refund Fund under this paragraph for so long as
2the revenue use requirements of 49 U.S.C. 47107(b) and 49
3U.S.C. 47133 are binding on the State.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning July 1, 1993 and ending on September 30,
82013, the Department shall each month pay into the Illinois
9Tax Increment Fund 0.27% of 80% of the net revenue realized for
10the preceding month from the 6.25% general rate on the selling
11price of tangible personal property.
12    Subject to payment of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, and the
14Illinois Tax Increment Fund pursuant to the preceding
15paragraphs or in any amendments to this Section hereafter
16enacted, beginning on the first day of the first calendar
17month to occur on or after August 26, 2014 (the effective date
18of Public Act 98-1098), each month, from the collections made
19under Section 9 of the Use Tax Act, Section 9 of the Service
20Use Tax Act, Section 9 of the Service Occupation Tax Act, and
21Section 3 of the Retailers' Occupation Tax Act, the Department
22shall pay into the Tax Compliance and Administration Fund, to
23be used, subject to appropriation, to fund additional auditors
24and compliance personnel at the Department of Revenue, an
25amount equal to 1/12 of 5% of 80% of the cash receipts
26collected during the preceding fiscal year by the Audit Bureau

 

 

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1of the Department under the Use Tax Act, the Service Use Tax
2Act, the Service Occupation Tax Act, the Retailers' Occupation
3Tax Act, and associated local occupation and use taxes
4administered by the Department.
5    Subject to payments of amounts into the Build Illinois
6Fund, the McCormick Place Expansion Project Fund, the Illinois
7Tax Increment Fund, and the Tax Compliance and Administration
8Fund as provided in this Section, beginning on July 1, 2018 the
9Department shall pay each month into the Downstate Public
10Transportation Fund the moneys required to be so paid under
11Section 2-3 of the Downstate Public Transportation Act.
12    Subject to successful execution and delivery of a
13public-private agreement between the public agency and private
14entity and completion of the civic build, beginning on July 1,
152023, of the remainder of the moneys received by the
16Department under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and this Act, the Department shall
18deposit the following specified deposits in the aggregate from
19collections under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and the Retailers' Occupation Tax
21Act, as required under Section 8.25g of the State Finance Act
22for distribution consistent with the Public-Private
23Partnership for Civic and Transit Infrastructure Project Act.
24The moneys received by the Department pursuant to this Act and
25required to be deposited into the Civic and Transit
26Infrastructure Fund are subject to the pledge, claim and

 

 

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1charge set forth in Section 25-55 of the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3As used in this paragraph, "civic build", "private entity",
4"public-private agreement", and "public agency" have the
5meanings provided in Section 25-10 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7        Fiscal Year............................Total Deposit
8        2024....................................$200,000,000
9        2025....................................$206,000,000
10        2026....................................$212,200,000
11        2027....................................$218,500,000
12        2028....................................$225,100,000
13        2029....................................$288,700,000
14        2030....................................$298,900,000
15        2031....................................$309,300,000
16        2032....................................$320,100,000
17        2033....................................$331,200,000
18        2034....................................$341,200,000
19        2035....................................$351,400,000
20        2036....................................$361,900,000
21        2037....................................$372,800,000
22        2038....................................$384,000,000
23        2039....................................$395,500,000
24        2040....................................$407,400,000
25        2041....................................$419,600,000
26        2042....................................$432,200,000

 

 

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1        2043....................................$445,100,000
2    Beginning July 1, 2021 and until July 1, 2022, subject to
3the payment of amounts into the County and Mass Transit
4District Fund, the Local Government Tax Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, and the Tax Compliance and
7Administration Fund as provided in this Section, the
8Department shall pay each month into the Road Fund the amount
9estimated to represent 16% of the net revenue realized from
10the taxes imposed on motor fuel and gasohol. Beginning July 1,
112022 and until July 1, 2023, subject to the payment of amounts
12into the County and Mass Transit District Fund, the Local
13Government Tax Fund, the Build Illinois Fund, the McCormick
14Place Expansion Project Fund, the Illinois Tax Increment Fund,
15and the Tax Compliance and Administration Fund as provided in
16this Section, the Department shall pay each month into the
17Road Fund the amount estimated to represent 32% of the net
18revenue realized from the taxes imposed on motor fuel and
19gasohol. Beginning July 1, 2023 and until July 1, 2024,
20subject to the payment of amounts into the County and Mass
21Transit District Fund, the Local Government Tax Fund, the
22Build Illinois Fund, the McCormick Place Expansion Project
23Fund, the Illinois Tax Increment Fund, and the Tax Compliance
24and Administration Fund as provided in this Section, the
25Department shall pay each month into the Road Fund the amount
26estimated to represent 48% of the net revenue realized from

 

 

SB3725- 169 -LRB103 38226 HLH 68360 b

1the taxes imposed on motor fuel and gasohol. Beginning July 1,
22024 and until July 1, 2025, subject to the payment of amounts
3into the County and Mass Transit District Fund, the Local
4Government Tax Fund, the Build Illinois Fund, the McCormick
5Place Expansion Project Fund, the Illinois Tax Increment Fund,
6and the Tax Compliance and Administration Fund as provided in
7this Section, the Department shall pay each month into the
8Road Fund the amount estimated to represent 64% of the net
9revenue realized from the taxes imposed on motor fuel and
10gasohol. Beginning on July 1, 2025, subject to the payment of
11amounts into the County and Mass Transit District Fund, the
12Local Government Tax Fund, the Build Illinois Fund, the
13McCormick Place Expansion Project Fund, the Illinois Tax
14Increment Fund, and the Tax Compliance and Administration Fund
15as provided in this Section, the Department shall pay each
16month into the Road Fund the amount estimated to represent 80%
17of the net revenue realized from the taxes imposed on motor
18fuel and gasohol. As used in this paragraph "motor fuel" has
19the meaning given to that term in Section 1.1 of the Motor Fuel
20Tax Law, and "gasohol" has the meaning given to that term in
21Section 3-40 of the Use Tax Act.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% shall be paid into the General
24Revenue Fund of the State treasury Treasury and 25% shall be
25reserved in a special account and used only for the transfer to
26the Common School Fund as part of the monthly transfer from the

 

 

SB3725- 170 -LRB103 38226 HLH 68360 b

1General Revenue Fund in accordance with Section 8a of the
2State Finance Act.
3    The Department may, upon separate written notice to a
4taxpayer, require the taxpayer to prepare and file with the
5Department on a form prescribed by the Department within not
6less than 60 days after receipt of the notice an annual
7information return for the tax year specified in the notice.
8Such annual return to the Department shall include a statement
9of gross receipts as shown by the taxpayer's last federal
10Federal income tax return. If the total receipts of the
11business as reported in the federal Federal income tax return
12do not agree with the gross receipts reported to the
13Department of Revenue for the same period, the taxpayer shall
14attach to his annual return a schedule showing a
15reconciliation of the 2 amounts and the reasons for the
16difference. The taxpayer's annual return to the Department
17shall also disclose the cost of goods sold by the taxpayer
18during the year covered by such return, opening and closing
19inventories of such goods for such year, cost of goods used
20from stock or taken from stock and given away by the taxpayer
21during such year, pay roll information of the taxpayer's
22business during such year and any additional reasonable
23information which the Department deems would be helpful in
24determining the accuracy of the monthly, quarterly or annual
25returns filed by such taxpayer as hereinbefore provided for in
26this Section.

 

 

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1    If the annual information return required by this Section
2is not filed when and as required, the taxpayer shall be liable
3as follows:
4        (i) Until January 1, 1994, the taxpayer shall be
5    liable for a penalty equal to 1/6 of 1% of the tax due from
6    such taxpayer under this Act during the period to be
7    covered by the annual return for each month or fraction of
8    a month until such return is filed as required, the
9    penalty to be assessed and collected in the same manner as
10    any other penalty provided for in this Act.
11        (ii) On and after January 1, 1994, the taxpayer shall
12    be liable for a penalty as described in Section 3-4 of the
13    Uniform Penalty and Interest Act.
14    The chief executive officer, proprietor, owner, or highest
15ranking manager shall sign the annual return to certify the
16accuracy of the information contained therein. Any person who
17willfully signs the annual return containing false or
18inaccurate information shall be guilty of perjury and punished
19accordingly. The annual return form prescribed by the
20Department shall include a warning that the person signing the
21return may be liable for perjury.
22    The foregoing portion of this Section concerning the
23filing of an annual information return shall not apply to a
24serviceman who is not required to file an income tax return
25with the United States Government.
26    As soon as possible after the first day of each month, upon

 

 

SB3725- 172 -LRB103 38226 HLH 68360 b

1certification of the Department of Revenue, the Comptroller
2shall order transferred and the Treasurer shall transfer from
3the General Revenue Fund to the Motor Fuel Tax Fund an amount
4equal to 1.7% of 80% of the net revenue realized under this Act
5for the second preceding month. Beginning April 1, 2000, this
6transfer is no longer required and shall not be made.
7    Net revenue realized for a month shall be the revenue
8collected by the State pursuant to this Act, less the amount
9paid out during that month as refunds to taxpayers for
10overpayment of liability.
11    For greater simplicity of administration, it shall be
12permissible for manufacturers, importers and wholesalers whose
13products are sold by numerous servicemen in Illinois, and who
14wish to do so, to assume the responsibility for accounting and
15paying to the Department all tax accruing under this Act with
16respect to such sales, if the servicemen who are affected do
17not make written objection to the Department to this
18arrangement.
19(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
20103-363, eff. 7-28-23; revised 9-25-23.)
 
21    Section 20. The Retailers' Occupation Tax Act is amended
22by changing Sections 2-5, 2-10, and 3 as follows:
 
23    (35 ILCS 120/2-5)
24    Sec. 2-5. Exemptions. Gross receipts from proceeds from

 

 

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1the sale of the following tangible personal property are
2exempt from the tax imposed by this Act:
3        (1) Farm chemicals.
4        (2) Farm machinery and equipment, both new and used,
5    including that manufactured on special order, certified by
6    the purchaser to be used primarily for production
7    agriculture or State or federal agricultural programs,
8    including individual replacement parts for the machinery
9    and equipment, including machinery and equipment purchased
10    for lease, and including implements of husbandry defined
11    in Section 1-130 of the Illinois Vehicle Code, farm
12    machinery and agricultural chemical and fertilizer
13    spreaders, and nurse wagons required to be registered
14    under Section 3-809 of the Illinois Vehicle Code, but
15    excluding other motor vehicles required to be registered
16    under the Illinois Vehicle Code. Horticultural polyhouses
17    or hoop houses used for propagating, growing, or
18    overwintering plants shall be considered farm machinery
19    and equipment under this item (2). Agricultural chemical
20    tender tanks and dry boxes shall include units sold
21    separately from a motor vehicle required to be licensed
22    and units sold mounted on a motor vehicle required to be
23    licensed, if the selling price of the tender is separately
24    stated.
25        Farm machinery and equipment shall include precision
26    farming equipment that is installed or purchased to be

 

 

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1    installed on farm machinery and equipment including, but
2    not limited to, tractors, harvesters, sprayers, planters,
3    seeders, or spreaders. Precision farming equipment
4    includes, but is not limited to, soil testing sensors,
5    computers, monitors, software, global positioning and
6    mapping systems, and other such equipment.
7        Farm machinery and equipment also includes computers,
8    sensors, software, and related equipment used primarily in
9    the computer-assisted operation of production agriculture
10    facilities, equipment, and activities such as, but not
11    limited to, the collection, monitoring, and correlation of
12    animal and crop data for the purpose of formulating animal
13    diets and agricultural chemicals.
14        Beginning on January 1, 2024, farm machinery and
15    equipment also includes electrical power generation
16    equipment used primarily for production agriculture.
17        This item (2) is exempt from the provisions of Section
18    2-70.
19        (3) Until July 1, 2003, distillation machinery and
20    equipment, sold as a unit or kit, assembled or installed
21    by the retailer, certified by the user to be used only for
22    the production of ethyl alcohol that will be used for
23    consumption as motor fuel or as a component of motor fuel
24    for the personal use of the user, and not subject to sale
25    or resale.
26        (4) Until July 1, 2003 and beginning again September

 

 

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1    1, 2004 through August 30, 2014, graphic arts machinery
2    and equipment, including repair and replacement parts,
3    both new and used, and including that manufactured on
4    special order or purchased for lease, certified by the
5    purchaser to be used primarily for graphic arts
6    production. Equipment includes chemicals or chemicals
7    acting as catalysts but only if the chemicals or chemicals
8    acting as catalysts effect a direct and immediate change
9    upon a graphic arts product. Beginning on July 1, 2017,
10    graphic arts machinery and equipment is included in the
11    manufacturing and assembling machinery and equipment
12    exemption under paragraph (14).
13        (5) A motor vehicle that is used for automobile
14    renting, as defined in the Automobile Renting Occupation
15    and Use Tax Act. This paragraph is exempt from the
16    provisions of Section 2-70.
17        (6) Personal property sold by a teacher-sponsored
18    student organization affiliated with an elementary or
19    secondary school located in Illinois.
20        (7) Until July 1, 2003, proceeds of that portion of
21    the selling price of a passenger car the sale of which is
22    subject to the Replacement Vehicle Tax.
23        (8) Personal property sold to an Illinois county fair
24    association for use in conducting, operating, or promoting
25    the county fair.
26        (9) Personal property sold to a not-for-profit arts or

 

 

SB3725- 176 -LRB103 38226 HLH 68360 b

1    cultural organization that establishes, by proof required
2    by the Department by rule, that it has received an
3    exemption under Section 501(c)(3) of the Internal Revenue
4    Code and that is organized and operated primarily for the
5    presentation or support of arts or cultural programming,
6    activities, or services. These organizations include, but
7    are not limited to, music and dramatic arts organizations
8    such as symphony orchestras and theatrical groups, arts
9    and cultural service organizations, local arts councils,
10    visual arts organizations, and media arts organizations.
11    On and after July 1, 2001 (the effective date of Public Act
12    92-35), however, an entity otherwise eligible for this
13    exemption shall not make tax-free purchases unless it has
14    an active identification number issued by the Department.
15        (10) Personal property sold by a corporation, society,
16    association, foundation, institution, or organization,
17    other than a limited liability company, that is organized
18    and operated as a not-for-profit service enterprise for
19    the benefit of persons 65 years of age or older if the
20    personal property was not purchased by the enterprise for
21    the purpose of resale by the enterprise.
22        (11) Except as otherwise provided in this Section,
23    personal property sold to a governmental body, to a
24    corporation, society, association, foundation, or
25    institution organized and operated exclusively for
26    charitable, religious, or educational purposes, or to a

 

 

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1    not-for-profit corporation, society, association,
2    foundation, institution, or organization that has no
3    compensated officers or employees and that is organized
4    and operated primarily for the recreation of persons 55
5    years of age or older. A limited liability company may
6    qualify for the exemption under this paragraph only if the
7    limited liability company is organized and operated
8    exclusively for educational purposes. On and after July 1,
9    1987, however, no entity otherwise eligible for this
10    exemption shall make tax-free purchases unless it has an
11    active identification number issued by the Department.
12        (12) (Blank).
13        (12-5) On and after July 1, 2003 and through June 30,
14    2004, motor vehicles of the second division with a gross
15    vehicle weight in excess of 8,000 pounds that are subject
16    to the commercial distribution fee imposed under Section
17    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
18    2004 and through June 30, 2005, the use in this State of
19    motor vehicles of the second division: (i) with a gross
20    vehicle weight rating in excess of 8,000 pounds; (ii) that
21    are subject to the commercial distribution fee imposed
22    under Section 3-815.1 of the Illinois Vehicle Code; and
23    (iii) that are primarily used for commercial purposes.
24    Through June 30, 2005, this exemption applies to repair
25    and replacement parts added after the initial purchase of
26    such a motor vehicle if that motor vehicle is used in a

 

 

SB3725- 178 -LRB103 38226 HLH 68360 b

1    manner that would qualify for the rolling stock exemption
2    otherwise provided for in this Act. For purposes of this
3    paragraph, "used for commercial purposes" means the
4    transportation of persons or property in furtherance of
5    any commercial or industrial enterprise whether for-hire
6    or not.
7        (13) Proceeds from sales to owners, lessors, or
8    shippers of tangible personal property that is utilized by
9    interstate carriers for hire for use as rolling stock
10    moving in interstate commerce and equipment operated by a
11    telecommunications provider, licensed as a common carrier
12    by the Federal Communications Commission, which is
13    permanently installed in or affixed to aircraft moving in
14    interstate commerce.
15        (14) Machinery and equipment that will be used by the
16    purchaser, or a lessee of the purchaser, primarily in the
17    process of manufacturing or assembling tangible personal
18    property for wholesale or retail sale or lease, whether
19    the sale or lease is made directly by the manufacturer or
20    by some other person, whether the materials used in the
21    process are owned by the manufacturer or some other
22    person, or whether the sale or lease is made apart from or
23    as an incident to the seller's engaging in the service
24    occupation of producing machines, tools, dies, jigs,
25    patterns, gauges, or other similar items of no commercial
26    value on special order for a particular purchaser. The

 

 

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1    exemption provided by this paragraph (14) does not include
2    machinery and equipment used in (i) the generation of
3    electricity for wholesale or retail sale; (ii) the
4    generation or treatment of natural or artificial gas for
5    wholesale or retail sale that is delivered to customers
6    through pipes, pipelines, or mains; or (iii) the treatment
7    of water for wholesale or retail sale that is delivered to
8    customers through pipes, pipelines, or mains. The
9    provisions of Public Act 98-583 are declaratory of
10    existing law as to the meaning and scope of this
11    exemption. Beginning on July 1, 2017, the exemption
12    provided by this paragraph (14) includes, but is not
13    limited to, graphic arts machinery and equipment, as
14    defined in paragraph (4) of this Section.
15        (15) Proceeds of mandatory service charges separately
16    stated on customers' bills for purchase and consumption of
17    food and beverages, to the extent that the proceeds of the
18    service charge are in fact turned over as tips or as a
19    substitute for tips to the employees who participate
20    directly in preparing, serving, hosting or cleaning up the
21    food or beverage function with respect to which the
22    service charge is imposed.
23        (16) Tangible personal property sold to a purchaser if
24    the purchaser is exempt from use tax by operation of
25    federal law. This paragraph is exempt from the provisions
26    of Section 2-70.

 

 

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1        (17) Tangible personal property sold to a common
2    carrier by rail or motor that receives the physical
3    possession of the property in Illinois and that transports
4    the property, or shares with another common carrier in the
5    transportation of the property, out of Illinois on a
6    standard uniform bill of lading showing the seller of the
7    property as the shipper or consignor of the property to a
8    destination outside Illinois, for use outside Illinois.
9        (18) Legal tender, currency, medallions, or gold or
10    silver coinage issued by the State of Illinois, the
11    government of the United States of America, or the
12    government of any foreign country, and bullion.
13        (19) Until July 1, 2003, oil field exploration,
14    drilling, and production equipment, including (i) rigs and
15    parts of rigs, rotary rigs, cable tool rigs, and workover
16    rigs, (ii) pipe and tubular goods, including casing and
17    drill strings, (iii) pumps and pump-jack units, (iv)
18    storage tanks and flow lines, (v) any individual
19    replacement part for oil field exploration, drilling, and
20    production equipment, and (vi) machinery and equipment
21    purchased for lease; but excluding motor vehicles required
22    to be registered under the Illinois Vehicle Code.
23        (20) Photoprocessing machinery and equipment,
24    including repair and replacement parts, both new and used,
25    including that manufactured on special order, certified by
26    the purchaser to be used primarily for photoprocessing,

 

 

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1    and including photoprocessing machinery and equipment
2    purchased for lease.
3        (21) Until July 1, 2028, coal and aggregate
4    exploration, mining, off-highway hauling, processing,
5    maintenance, and reclamation equipment, including
6    replacement parts and equipment, and including equipment
7    purchased for lease, but excluding motor vehicles required
8    to be registered under the Illinois Vehicle Code. The
9    changes made to this Section by Public Act 97-767 apply on
10    and after July 1, 2003, but no claim for credit or refund
11    is allowed on or after August 16, 2013 (the effective date
12    of Public Act 98-456) for such taxes paid during the
13    period beginning July 1, 2003 and ending on August 16,
14    2013 (the effective date of Public Act 98-456).
15        (22) Until June 30, 2013, fuel and petroleum products
16    sold to or used by an air carrier, certified by the carrier
17    to be used for consumption, shipment, or storage in the
18    conduct of its business as an air common carrier, for a
19    flight destined for or returning from a location or
20    locations outside the United States without regard to
21    previous or subsequent domestic stopovers.
22        Beginning July 1, 2013, fuel and petroleum products
23    sold to or used by an air carrier, certified by the carrier
24    to be used for consumption, shipment, or storage in the
25    conduct of its business as an air common carrier, for a
26    flight that (i) is engaged in foreign trade or is engaged

 

 

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1    in trade between the United States and any of its
2    possessions and (ii) transports at least one individual or
3    package for hire from the city of origination to the city
4    of final destination on the same aircraft, without regard
5    to a change in the flight number of that aircraft.
6        (23) A transaction in which the purchase order is
7    received by a florist who is located outside Illinois, but
8    who has a florist located in Illinois deliver the property
9    to the purchaser or the purchaser's donee in Illinois.
10        (24) Fuel consumed or used in the operation of ships,
11    barges, or vessels that are used primarily in or for the
12    transportation of property or the conveyance of persons
13    for hire on rivers bordering on this State if the fuel is
14    delivered by the seller to the purchaser's barge, ship, or
15    vessel while it is afloat upon that bordering river.
16        (25) Except as provided in item (25-5) of this
17    Section, a motor vehicle sold in this State to a
18    nonresident even though the motor vehicle is delivered to
19    the nonresident in this State, if the motor vehicle is not
20    to be titled in this State, and if a drive-away permit is
21    issued to the motor vehicle as provided in Section 3-603
22    of the Illinois Vehicle Code or if the nonresident
23    purchaser has vehicle registration plates to transfer to
24    the motor vehicle upon returning to his or her home state.
25    The issuance of the drive-away permit or having the
26    out-of-state registration plates to be transferred is

 

 

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1    prima facie evidence that the motor vehicle will not be
2    titled in this State.
3        (25-5) The exemption under item (25) does not apply if
4    the state in which the motor vehicle will be titled does
5    not allow a reciprocal exemption for a motor vehicle sold
6    and delivered in that state to an Illinois resident but
7    titled in Illinois. The tax collected under this Act on
8    the sale of a motor vehicle in this State to a resident of
9    another state that does not allow a reciprocal exemption
10    shall be imposed at a rate equal to the state's rate of tax
11    on taxable property in the state in which the purchaser is
12    a resident, except that the tax shall not exceed the tax
13    that would otherwise be imposed under this Act. At the
14    time of the sale, the purchaser shall execute a statement,
15    signed under penalty of perjury, of his or her intent to
16    title the vehicle in the state in which the purchaser is a
17    resident within 30 days after the sale and of the fact of
18    the payment to the State of Illinois of tax in an amount
19    equivalent to the state's rate of tax on taxable property
20    in his or her state of residence and shall submit the
21    statement to the appropriate tax collection agency in his
22    or her state of residence. In addition, the retailer must
23    retain a signed copy of the statement in his or her
24    records. Nothing in this item shall be construed to
25    require the removal of the vehicle from this state
26    following the filing of an intent to title the vehicle in

 

 

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1    the purchaser's state of residence if the purchaser titles
2    the vehicle in his or her state of residence within 30 days
3    after the date of sale. The tax collected under this Act in
4    accordance with this item (25-5) shall be proportionately
5    distributed as if the tax were collected at the 6.25%
6    general rate imposed under this Act.
7        (25-7) Beginning on July 1, 2007, no tax is imposed
8    under this Act on the sale of an aircraft, as defined in
9    Section 3 of the Illinois Aeronautics Act, if all of the
10    following conditions are met:
11            (1) the aircraft leaves this State within 15 days
12        after the later of either the issuance of the final
13        billing for the sale of the aircraft, or the
14        authorized approval for return to service, completion
15        of the maintenance record entry, and completion of the
16        test flight and ground test for inspection, as
17        required by 14 CFR 91.407;
18            (2) the aircraft is not based or registered in
19        this State after the sale of the aircraft; and
20            (3) the seller retains in his or her books and
21        records and provides to the Department a signed and
22        dated certification from the purchaser, on a form
23        prescribed by the Department, certifying that the
24        requirements of this item (25-7) are met. The
25        certificate must also include the name and address of
26        the purchaser, the address of the location where the

 

 

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1        aircraft is to be titled or registered, the address of
2        the primary physical location of the aircraft, and
3        other information that the Department may reasonably
4        require.
5        For purposes of this item (25-7):
6        "Based in this State" means hangared, stored, or
7    otherwise used, excluding post-sale customizations as
8    defined in this Section, for 10 or more days in each
9    12-month period immediately following the date of the sale
10    of the aircraft.
11        "Registered in this State" means an aircraft
12    registered with the Department of Transportation,
13    Aeronautics Division, or titled or registered with the
14    Federal Aviation Administration to an address located in
15    this State.
16        This paragraph (25-7) is exempt from the provisions of
17    Section 2-70.
18        (26) Semen used for artificial insemination of
19    livestock for direct agricultural production.
20        (27) Horses, or interests in horses, registered with
21    and meeting the requirements of any of the Arabian Horse
22    Club Registry of America, Appaloosa Horse Club, American
23    Quarter Horse Association, United States Trotting
24    Association, or Jockey Club, as appropriate, used for
25    purposes of breeding or racing for prizes. This item (27)
26    is exempt from the provisions of Section 2-70, and the

 

 

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1    exemption provided for under this item (27) applies for
2    all periods beginning May 30, 1995, but no claim for
3    credit or refund is allowed on or after January 1, 2008
4    (the effective date of Public Act 95-88) for such taxes
5    paid during the period beginning May 30, 2000 and ending
6    on January 1, 2008 (the effective date of Public Act
7    95-88).
8        (28) Computers and communications equipment utilized
9    for any hospital purpose and equipment used in the
10    diagnosis, analysis, or treatment of hospital patients
11    sold to a lessor who leases the equipment, under a lease of
12    one year or longer executed or in effect at the time of the
13    purchase, to a hospital that has been issued an active tax
14    exemption identification number by the Department under
15    Section 1g of this Act.
16        (29) Personal property sold to a lessor who leases the
17    property, under a lease of one year or longer executed or
18    in effect at the time of the purchase, to a governmental
19    body that has been issued an active tax exemption
20    identification number by the Department under Section 1g
21    of this Act.
22        (30) Beginning with taxable years ending on or after
23    December 31, 1995 and ending with taxable years ending on
24    or before December 31, 2004, personal property that is
25    donated for disaster relief to be used in a State or
26    federally declared disaster area in Illinois or bordering

 

 

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1    Illinois by a manufacturer or retailer that is registered
2    in this State to a corporation, society, association,
3    foundation, or institution that has been issued a sales
4    tax exemption identification number by the Department that
5    assists victims of the disaster who reside within the
6    declared disaster area.
7        (31) Beginning with taxable years ending on or after
8    December 31, 1995 and ending with taxable years ending on
9    or before December 31, 2004, personal property that is
10    used in the performance of infrastructure repairs in this
11    State, including, but not limited to, municipal roads and
12    streets, access roads, bridges, sidewalks, waste disposal
13    systems, water and sewer line extensions, water
14    distribution and purification facilities, storm water
15    drainage and retention facilities, and sewage treatment
16    facilities, resulting from a State or federally declared
17    disaster in Illinois or bordering Illinois when such
18    repairs are initiated on facilities located in the
19    declared disaster area within 6 months after the disaster.
20        (32) Beginning July 1, 1999, game or game birds sold
21    at a "game breeding and hunting preserve area" as that
22    term is used in the Wildlife Code. This paragraph is
23    exempt from the provisions of Section 2-70.
24        (33) A motor vehicle, as that term is defined in
25    Section 1-146 of the Illinois Vehicle Code, that is
26    donated to a corporation, limited liability company,

 

 

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1    society, association, foundation, or institution that is
2    determined by the Department to be organized and operated
3    exclusively for educational purposes. For purposes of this
4    exemption, "a corporation, limited liability company,
5    society, association, foundation, or institution organized
6    and operated exclusively for educational purposes" means
7    all tax-supported public schools, private schools that
8    offer systematic instruction in useful branches of
9    learning by methods common to public schools and that
10    compare favorably in their scope and intensity with the
11    course of study presented in tax-supported schools, and
12    vocational or technical schools or institutes organized
13    and operated exclusively to provide a course of study of
14    not less than 6 weeks duration and designed to prepare
15    individuals to follow a trade or to pursue a manual,
16    technical, mechanical, industrial, business, or commercial
17    occupation.
18        (34) Beginning January 1, 2000, personal property,
19    including food, purchased through fundraising events for
20    the benefit of a public or private elementary or secondary
21    school, a group of those schools, or one or more school
22    districts if the events are sponsored by an entity
23    recognized by the school district that consists primarily
24    of volunteers and includes parents and teachers of the
25    school children. This paragraph does not apply to
26    fundraising events (i) for the benefit of private home

 

 

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1    instruction or (ii) for which the fundraising entity
2    purchases the personal property sold at the events from
3    another individual or entity that sold the property for
4    the purpose of resale by the fundraising entity and that
5    profits from the sale to the fundraising entity. This
6    paragraph is exempt from the provisions of Section 2-70.
7        (35) Beginning January 1, 2000 and through December
8    31, 2001, new or used automatic vending machines that
9    prepare and serve hot food and beverages, including
10    coffee, soup, and other items, and replacement parts for
11    these machines. Beginning January 1, 2002 and through June
12    30, 2003, machines and parts for machines used in
13    commercial, coin-operated amusement and vending business
14    if a use or occupation tax is paid on the gross receipts
15    derived from the use of the commercial, coin-operated
16    amusement and vending machines. This paragraph is exempt
17    from the provisions of Section 2-70.
18        (35-5) Beginning August 23, 2001 and through June 30,
19    2016, food for human consumption that is to be consumed
20    off the premises where it is sold (other than alcoholic
21    beverages, soft drinks, and food that has been prepared
22    for immediate consumption) and prescription and
23    nonprescription medicines, drugs, medical appliances, and
24    insulin, urine testing materials, syringes, and needles
25    used by diabetics, for human use, when purchased for use
26    by a person receiving medical assistance under Article V

 

 

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1    of the Illinois Public Aid Code who resides in a licensed
2    long-term care facility, as defined in the Nursing Home
3    Care Act, or a licensed facility as defined in the ID/DD
4    Community Care Act, the MC/DD Act, or the Specialized
5    Mental Health Rehabilitation Act of 2013.
6        (36) Beginning August 2, 2001, computers and
7    communications equipment utilized for any hospital purpose
8    and equipment used in the diagnosis, analysis, or
9    treatment of hospital patients sold to a lessor who leases
10    the equipment, under a lease of one year or longer
11    executed or in effect at the time of the purchase, to a
12    hospital that has been issued an active tax exemption
13    identification number by the Department under Section 1g
14    of this Act. This paragraph is exempt from the provisions
15    of Section 2-70.
16        (37) Beginning August 2, 2001, personal property sold
17    to a lessor who leases the property, under a lease of one
18    year or longer executed or in effect at the time of the
19    purchase, to a governmental body that has been issued an
20    active tax exemption identification number by the
21    Department under Section 1g of this Act. This paragraph is
22    exempt from the provisions of Section 2-70.
23        (38) Beginning on January 1, 2002 and through June 30,
24    2016, tangible personal property purchased from an
25    Illinois retailer by a taxpayer engaged in centralized
26    purchasing activities in Illinois who will, upon receipt

 

 

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1    of the property in Illinois, temporarily store the
2    property in Illinois (i) for the purpose of subsequently
3    transporting it outside this State for use or consumption
4    thereafter solely outside this State or (ii) for the
5    purpose of being processed, fabricated, or manufactured
6    into, attached to, or incorporated into other tangible
7    personal property to be transported outside this State and
8    thereafter used or consumed solely outside this State. The
9    Director of Revenue shall, pursuant to rules adopted in
10    accordance with the Illinois Administrative Procedure Act,
11    issue a permit to any taxpayer in good standing with the
12    Department who is eligible for the exemption under this
13    paragraph (38). The permit issued under this paragraph
14    (38) shall authorize the holder, to the extent and in the
15    manner specified in the rules adopted under this Act, to
16    purchase tangible personal property from a retailer exempt
17    from the taxes imposed by this Act. Taxpayers shall
18    maintain all necessary books and records to substantiate
19    the use and consumption of all such tangible personal
20    property outside of the State of Illinois.
21        (39) Beginning January 1, 2008, tangible personal
22    property used in the construction or maintenance of a
23    community water supply, as defined under Section 3.145 of
24    the Environmental Protection Act, that is operated by a
25    not-for-profit corporation that holds a valid water supply
26    permit issued under Title IV of the Environmental

 

 

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1    Protection Act. This paragraph is exempt from the
2    provisions of Section 2-70.
3        (40) Beginning January 1, 2010 and continuing through
4    December 31, 2029, materials, parts, equipment,
5    components, and furnishings incorporated into or upon an
6    aircraft as part of the modification, refurbishment,
7    completion, replacement, repair, or maintenance of the
8    aircraft. This exemption includes consumable supplies used
9    in the modification, refurbishment, completion,
10    replacement, repair, and maintenance of aircraft. However,
11    until January 1, 2024, this exemption excludes any
12    materials, parts, equipment, components, and consumable
13    supplies used in the modification, replacement, repair,
14    and maintenance of aircraft engines or power plants,
15    whether such engines or power plants are installed or
16    uninstalled upon any such aircraft. "Consumable supplies"
17    include, but are not limited to, adhesive, tape,
18    sandpaper, general purpose lubricants, cleaning solution,
19    latex gloves, and protective films.
20        Beginning January 1, 2010 and continuing through
21    December 31, 2023, this exemption applies only to the sale
22    of qualifying tangible personal property to persons who
23    modify, refurbish, complete, replace, or maintain an
24    aircraft and who (i) hold an Air Agency Certificate and
25    are empowered to operate an approved repair station by the
26    Federal Aviation Administration, (ii) have a Class IV

 

 

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1    Rating, and (iii) conduct operations in accordance with
2    Part 145 of the Federal Aviation Regulations. The
3    exemption does not include aircraft operated by a
4    commercial air carrier providing scheduled passenger air
5    service pursuant to authority issued under Part 121 or
6    Part 129 of the Federal Aviation Regulations. From January
7    1, 2024 through December 31, 2029, this exemption applies
8    only to the use of qualifying tangible personal property
9    by: (A) persons who modify, refurbish, complete, repair,
10    replace, or maintain aircraft and who (i) hold an Air
11    Agency Certificate and are empowered to operate an
12    approved repair station by the Federal Aviation
13    Administration, (ii) have a Class IV Rating, and (iii)
14    conduct operations in accordance with Part 145 of the
15    Federal Aviation Regulations; and (B) persons who engage
16    in the modification, replacement, repair, and maintenance
17    of aircraft engines or power plants without regard to
18    whether or not those persons meet the qualifications of
19    item (A).
20        The changes made to this paragraph (40) by Public Act
21    98-534 are declarative of existing law. It is the intent
22    of the General Assembly that the exemption under this
23    paragraph (40) applies continuously from January 1, 2010
24    through December 31, 2024; however, no claim for credit or
25    refund is allowed for taxes paid as a result of the
26    disallowance of this exemption on or after January 1, 2015

 

 

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1    and prior to February 5, 2020 (the effective date of
2    Public Act 101-629).
3        (41) Tangible personal property sold to a
4    public-facilities corporation, as described in Section
5    11-65-10 of the Illinois Municipal Code, for purposes of
6    constructing or furnishing a municipal convention hall,
7    but only if the legal title to the municipal convention
8    hall is transferred to the municipality without any
9    further consideration by or on behalf of the municipality
10    at the time of the completion of the municipal convention
11    hall or upon the retirement or redemption of any bonds or
12    other debt instruments issued by the public-facilities
13    corporation in connection with the development of the
14    municipal convention hall. This exemption includes
15    existing public-facilities corporations as provided in
16    Section 11-65-25 of the Illinois Municipal Code. This
17    paragraph is exempt from the provisions of Section 2-70.
18        (42) Beginning January 1, 2017 and through December
19    31, 2026, menstrual pads, tampons, and menstrual cups.
20        (43) Merchandise that is subject to the Rental
21    Purchase Agreement Occupation and Use Tax. The purchaser
22    must certify that the item is purchased to be rented
23    subject to a rental-purchase rental purchase agreement, as
24    defined in the Rental-Purchase Rental Purchase Agreement
25    Act, and provide proof of registration under the Rental
26    Purchase Agreement Occupation and Use Tax Act. This

 

 

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1    paragraph is exempt from the provisions of Section 2-70.
2        (44) Qualified tangible personal property used in the
3    construction or operation of a data center that has been
4    granted a certificate of exemption by the Department of
5    Commerce and Economic Opportunity, whether that tangible
6    personal property is purchased by the owner, operator, or
7    tenant of the data center or by a contractor or
8    subcontractor of the owner, operator, or tenant. Data
9    centers that would have qualified for a certificate of
10    exemption prior to January 1, 2020 had Public Act 101-31
11    been in effect, may apply for and obtain an exemption for
12    subsequent purchases of computer equipment or enabling
13    software purchased or leased to upgrade, supplement, or
14    replace computer equipment or enabling software purchased
15    or leased in the original investment that would have
16    qualified.
17        The Department of Commerce and Economic Opportunity
18    shall grant a certificate of exemption under this item
19    (44) to qualified data centers as defined by Section
20    605-1025 of the Department of Commerce and Economic
21    Opportunity Law of the Civil Administrative Code of
22    Illinois.
23        For the purposes of this item (44):
24            "Data center" means a building or a series of
25        buildings rehabilitated or constructed to house
26        working servers in one physical location or multiple

 

 

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1        sites within the State of Illinois.
2            "Qualified tangible personal property" means:
3        electrical systems and equipment; climate control and
4        chilling equipment and systems; mechanical systems and
5        equipment; monitoring and secure systems; emergency
6        generators; hardware; computers; servers; data storage
7        devices; network connectivity equipment; racks;
8        cabinets; telecommunications cabling infrastructure;
9        raised floor systems; peripheral components or
10        systems; software; mechanical, electrical, or plumbing
11        systems; battery systems; cooling systems and towers;
12        temperature control systems; other cabling; and other
13        data center infrastructure equipment and systems
14        necessary to operate qualified tangible personal
15        property, including fixtures; and component parts of
16        any of the foregoing, including installation,
17        maintenance, repair, refurbishment, and replacement of
18        qualified tangible personal property to generate,
19        transform, transmit, distribute, or manage electricity
20        necessary to operate qualified tangible personal
21        property; and all other tangible personal property
22        that is essential to the operations of a computer data
23        center. The term "qualified tangible personal
24        property" also includes building materials physically
25        incorporated into the qualifying data center. To
26        document the exemption allowed under this Section, the

 

 

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1        retailer must obtain from the purchaser a copy of the
2        certificate of eligibility issued by the Department of
3        Commerce and Economic Opportunity.
4        This item (44) is exempt from the provisions of
5    Section 2-70.
6        (45) Beginning January 1, 2020 and through December
7    31, 2020, sales of tangible personal property made by a
8    marketplace seller over a marketplace for which tax is due
9    under this Act but for which use tax has been collected and
10    remitted to the Department by a marketplace facilitator
11    under Section 2d of the Use Tax Act are exempt from tax
12    under this Act. A marketplace seller claiming this
13    exemption shall maintain books and records demonstrating
14    that the use tax on such sales has been collected and
15    remitted by a marketplace facilitator. Marketplace sellers
16    that have properly remitted tax under this Act on such
17    sales may file a claim for credit as provided in Section 6
18    of this Act. No claim is allowed, however, for such taxes
19    for which a credit or refund has been issued to the
20    marketplace facilitator under the Use Tax Act, or for
21    which the marketplace facilitator has filed a claim for
22    credit or refund under the Use Tax Act.
23        (46) Beginning July 1, 2022, breast pumps, breast pump
24    collection and storage supplies, and breast pump kits.
25    This item (46) is exempt from the provisions of Section
26    2-70. As used in this item (46):

 

 

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1        "Breast pump" means an electrically controlled or
2    manually controlled pump device designed or marketed to be
3    used to express milk from a human breast during lactation,
4    including the pump device and any battery, AC adapter, or
5    other power supply unit that is used to power the pump
6    device and is packaged and sold with the pump device at the
7    time of sale.
8        "Breast pump collection and storage supplies" means
9    items of tangible personal property designed or marketed
10    to be used in conjunction with a breast pump to collect
11    milk expressed from a human breast and to store collected
12    milk until it is ready for consumption.
13        "Breast pump collection and storage supplies"
14    includes, but is not limited to: breast shields and breast
15    shield connectors; breast pump tubes and tubing adapters;
16    breast pump valves and membranes; backflow protectors and
17    backflow protector adaptors; bottles and bottle caps
18    specific to the operation of the breast pump; and breast
19    milk storage bags.
20        "Breast pump collection and storage supplies" does not
21    include: (1) bottles and bottle caps not specific to the
22    operation of the breast pump; (2) breast pump travel bags
23    and other similar carrying accessories, including ice
24    packs, labels, and other similar products; (3) breast pump
25    cleaning supplies; (4) nursing bras, bra pads, breast
26    shells, and other similar products; and (5) creams,

 

 

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1    ointments, and other similar products that relieve
2    breastfeeding-related symptoms or conditions of the
3    breasts or nipples, unless sold as part of a breast pump
4    kit that is pre-packaged by the breast pump manufacturer
5    or distributor.
6        "Breast pump kit" means a kit that: (1) contains no
7    more than a breast pump, breast pump collection and
8    storage supplies, a rechargeable battery for operating the
9    breast pump, a breastmilk cooler, bottle stands, ice
10    packs, and a breast pump carrying case; and (2) is
11    pre-packaged as a breast pump kit by the breast pump
12    manufacturer or distributor.
13        (47) Tangible personal property sold by or on behalf
14    of the State Treasurer pursuant to the Revised Uniform
15    Unclaimed Property Act. This item (47) is exempt from the
16    provisions of Section 2-70.
17        (48) Beginning on January 1, 2024, tangible personal
18    property purchased by an active duty member of the armed
19    forces of the United States who presents valid military
20    identification and purchases the property using a form of
21    payment where the federal government is the payor. The
22    member of the armed forces must complete, at the point of
23    sale, a form prescribed by the Department of Revenue
24    documenting that the transaction is eligible for the
25    exemption under this paragraph. Retailers must keep the
26    form as documentation of the exemption in their records

 

 

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1    for a period of not less than 6 years. "Armed forces of the
2    United States" means the United States Army, Navy, Air
3    Force, Marine Corps, or Coast Guard. This paragraph is
4    exempt from the provisions of Section 2-70.
5    (49) Beginning on July 1, 2024, as defined in Section
62-10, food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages,
8food consisting of or infused with adult use cannabis, soft
9drinks, and food that has been prepared for immediate
10consumption). This item (49) is exempt from the provisions of
11Section 2-70.
12    (50) Beginning on July 1, 2024, the following items, as
13defined in Section 2-10:
14        (A) prescription and nonprescription medicines, drugs,
15    and medical appliances;
16        (B) products classified as Class III medical devices
17    by the United States Food and Drug Administration that are
18    used for cancer treatment pursuant to a prescription, as
19    well as any accessories and components related to those
20    devices;
21        (C) modifications to a motor vehicle for the purpose
22    of rendering it usable by a person with a disability; and
23        (D) insulin, blood sugar testing materials, syringes,
24    and needles used by human diabetics.
25    This item (50) is exempt from the provisions of Section
262-70.

 

 

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1(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
2102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
45-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
55-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
66-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
712-12-23.)
 
8    (35 ILCS 120/2-10)
9    Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made
12in the course of business.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning on August 6, 2010 through August 15, 2010, and
18beginning again on August 5, 2022 through August 14, 2022,
19with respect to sales tax holiday items as defined in Section
202-8 of this Act, the tax is imposed at the rate of 1.25%.
21    Within 14 days after July 1, 2000 (the effective date of
22Public Act 91-872), each retailer of motor fuel and gasohol
23shall cause the following notice to be posted in a prominently
24visible place on each retail dispensing device that is used to
25dispense motor fuel or gasohol in the State of Illinois: "As of

 

 

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1July 1, 2000, the State of Illinois has eliminated the State's
2share of sales tax on motor fuel and gasohol through December
331, 2000. The price on this pump should reflect the
4elimination of the tax." The notice shall be printed in bold
5print on a sign that is no smaller than 4 inches by 8 inches.
6The sign shall be clearly visible to customers. Any retailer
7who fails to post or maintain a required sign through December
831, 2000 is guilty of a petty offense for which the fine shall
9be $500 per day per each retail premises where a violation
10occurs.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the proceeds of
13sales made on or after January 1, 1990, and before July 1,
142003, (ii) 80% of the proceeds of sales made on or after July
151, 2003 and on or before July 1, 2017, (iii) 100% of the
16proceeds of sales made after July 1, 2017 and prior to January
171, 2024, (iv) 90% of the proceeds of sales made on or after
18January 1, 2024 and on or before December 31, 2028, and (v)
19100% of the proceeds of sales made after December 31, 2028. If,
20at any time, however, the tax under this Act on sales of
21gasohol, as defined in the Use Tax Act, is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of gasohol made during that time.
24    With respect to mid-range ethanol blends, as defined in
25Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
26applies to (i) 80% of the proceeds of sales made on or after

 

 

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1January 1, 2024 and on or before December 31, 2028 and (ii)
2100% of the proceeds of sales made after December 31, 2028. If,
3at any time, however, the tax under this Act on sales of
4mid-range ethanol blends is imposed at the rate of 1.25%, then
5the tax imposed by this Act applies to 100% of the proceeds of
6sales of mid-range ethanol blends made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the proceeds of sales made on or after July 1, 2003 and on
10or before December 31, 2028 but applies to 100% of the proceeds
11of sales made thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the proceeds
15of sales made on or after July 1, 2003 and on or before
16December 31, 2018 and (ii) 100% of the proceeds of sales made
17after December 31, 2018 and before January 1, 2024. On and
18after January 1, 2024 and on or before December 31, 2030, the
19taxation of biodiesel, renewable diesel, and biodiesel blends
20shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21at any time, however, the tax under this Act on sales of
22biodiesel blends, as defined in the Use Tax Act, with no less
23than 1% and no more than 10% biodiesel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of biodiesel blends with no less than 1%
26and no more than 10% biodiesel made during that time.

 

 

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1    With respect to biodiesel, as defined in the Use Tax Act,
2and biodiesel blends, as defined in the Use Tax Act, with more
3than 10% but no more than 99% biodiesel, the tax imposed by
4this Act does not apply to the proceeds of sales made on or
5after July 1, 2003 and on or before December 31, 2023. On and
6after January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act.
9    Until July 1, 2022 and from beginning again on July 1, 2023
10through June 30, 2024, with respect to food for human
11consumption that is to be consumed off the premises where it is
12sold (other than alcoholic beverages, food consisting of or
13infused with adult use cannabis, soft drinks, and food that
14has been prepared for immediate consumption), the tax is
15imposed at the rate of 1%. Beginning July 1, 2022 and until
16July 1, 2023, with respect to food for human consumption that
17is to be consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption), the tax is imposed at the rate of 0%.
21    Through June 30, 2024, with With respect to prescription
22and nonprescription medicines, drugs, medical appliances,
23products classified as Class III medical devices by the United
24States Food and Drug Administration that are used for cancer
25treatment pursuant to a prescription, as well as any
26accessories and components related to those devices,

 

 

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1modifications to a motor vehicle for the purpose of rendering
2it usable by a person with a disability, and insulin, blood
3sugar testing materials, syringes, and needles used by human
4diabetics, the tax is imposed at the rate of 1%. For the
5purposes of this Section, until September 1, 2009: the term
6"soft drinks" means any complete, finished, ready-to-use,
7non-alcoholic drink, whether carbonated or not, including, but
8not limited to, soda water, cola, fruit juice, vegetable
9juice, carbonated water, and all other preparations commonly
10known as soft drinks of whatever kind or description that are
11contained in any closed or sealed bottle, can, carton, or
12container, regardless of size; but "soft drinks" does not
13include coffee, tea, non-carbonated water, infant formula,
14milk or milk products as defined in the Grade A Pasteurized
15Milk and Milk Products Act, or drinks containing 50% or more
16natural fruit or vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" does not include beverages that contain milk or milk
21products, soy, rice or similar milk substitutes, or greater
22than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

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1food products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine. Beginning
3August 1, 2009, and notwithstanding any other provisions of
4this Act, "food for human consumption that is to be consumed
5off the premises where it is sold" includes all food sold
6through a vending machine, except soft drinks, candy, and food
7products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "food for human consumption that
11is to be consumed off the premises where it is sold" does not
12include candy. For purposes of this Section, "candy" means a
13preparation of sugar, honey, or other natural or artificial
14sweeteners in combination with chocolate, fruits, nuts or
15other ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

 

 

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1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 CFR 201.66. The "over-the-counter-drug"
4label includes:
5        (A) a "Drug Facts" panel; or
6        (B) a statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on January 1, 2014 (the effective date of Public
10Act 98-122), "prescription and nonprescription medicines and
11drugs" includes medical cannabis purchased from a registered
12dispensing organization under the Compassionate Use of Medical
13Cannabis Program Act.
14    As used in this Section, "adult use cannabis" means
15cannabis subject to tax under the Cannabis Cultivation
16Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17and does not include cannabis subject to tax under the
18Compassionate Use of Medical Cannabis Program Act.
19(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
20Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
2160-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
224-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
 
23    (35 ILCS 120/3)  (from Ch. 120, par. 442)
24    Sec. 3. Except as provided in this Section, on or before
25the twentieth day of each calendar month, every person engaged

 

 

SB3725- 208 -LRB103 38226 HLH 68360 b

1in the business of selling tangible personal property at
2retail in this State during the preceding calendar month shall
3file a return with the Department, stating:
4        1. The name of the seller;
5        2. His residence address and the address of his
6    principal place of business and the address of the
7    principal place of business (if that is a different
8    address) from which he engages in the business of selling
9    tangible personal property at retail in this State;
10        3. Total amount of receipts received by him during the
11    preceding calendar month or quarter, as the case may be,
12    from sales of tangible personal property, and from
13    services furnished, by him during such preceding calendar
14    month or quarter;
15        4. Total amount received by him during the preceding
16    calendar month or quarter on charge and time sales of
17    tangible personal property, and from services furnished,
18    by him prior to the month or quarter for which the return
19    is filed;
20        5. Deductions allowed by law;
21        6. Gross receipts which were received by him during
22    the preceding calendar month or quarter and upon the basis
23    of which the tax is imposed, including gross receipts on
24    food for human consumption that is to be consumed off the
25    premises where it is sold (other than alcoholic beverages,
26    food consisting of or infused with adult use cannabis,

 

 

SB3725- 209 -LRB103 38226 HLH 68360 b

1    soft drinks, and food that has been prepared for immediate
2    consumption) which were received during the preceding
3    calendar month or quarter and upon which tax would have
4    been due but for the 0% rate imposed under Public Act
5    102-700;
6        7. The amount of credit provided in Section 2d of this
7    Act;
8        8. The amount of tax due, including the amount of tax
9    that would have been due on food for human consumption
10    that is to be consumed off the premises where it is sold
11    (other than alcoholic beverages, food consisting of or
12    infused with adult use cannabis, soft drinks, and food
13    that has been prepared for immediate consumption) but for
14    the 0% rate imposed under Public Act 102-700;
15        9. The signature of the taxpayer; and
16        10. Such other reasonable information as the
17    Department may require.
18    On and after January 1, 2018, except for returns required
19to be filed prior to January 1, 2023 for motor vehicles,
20watercraft, aircraft, and trailers that are required to be
21registered with an agency of this State, with respect to
22retailers whose annual gross receipts average $20,000 or more,
23all returns required to be filed pursuant to this Act shall be
24filed electronically. On and after January 1, 2023, with
25respect to retailers whose annual gross receipts average
26$20,000 or more, all returns required to be filed pursuant to

 

 

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1this Act, including, but not limited to, returns for motor
2vehicles, watercraft, aircraft, and trailers that are required
3to be registered with an agency of this State, shall be filed
4electronically. Retailers who demonstrate that they do not
5have access to the Internet or demonstrate hardship in filing
6electronically may petition the Department to waive the
7electronic filing requirement.
8    If a taxpayer fails to sign a return within 30 days after
9the proper notice and demand for signature by the Department,
10the return shall be considered valid and any amount shown to be
11due on the return shall be deemed assessed.
12    Each return shall be accompanied by the statement of
13prepaid tax issued pursuant to Section 2e for which credit is
14claimed.
15    Prior to October 1, 2003, and on and after September 1,
162004, a retailer may accept a Manufacturer's Purchase Credit
17certification from a purchaser in satisfaction of Use Tax as
18provided in Section 3-85 of the Use Tax Act if the purchaser
19provides the appropriate documentation as required by Section
203-85 of the Use Tax Act. A Manufacturer's Purchase Credit
21certification, accepted by a retailer prior to October 1, 2003
22and on and after September 1, 2004 as provided in Section 3-85
23of the Use Tax Act, may be used by that retailer to satisfy
24Retailers' Occupation Tax liability in the amount claimed in
25the certification, not to exceed 6.25% of the receipts subject
26to tax from a qualifying purchase. A Manufacturer's Purchase

 

 

SB3725- 211 -LRB103 38226 HLH 68360 b

1Credit reported on any original or amended return filed under
2this Act after October 20, 2003 for reporting periods prior to
3September 1, 2004 shall be disallowed. Manufacturer's Purchase
4Credit reported on annual returns due on or after January 1,
52005 will be disallowed for periods prior to September 1,
62004. No Manufacturer's Purchase Credit may be used after
7September 30, 2003 through August 31, 2004 to satisfy any tax
8liability imposed under this Act, including any audit
9liability.
10    Beginning on July 1, 2023 and through December 31, 2032, a
11retailer may accept a Sustainable Aviation Fuel Purchase
12Credit certification from an air common carrier-purchaser in
13satisfaction of Use Tax on aviation fuel as provided in
14Section 3-87 of the Use Tax Act if the purchaser provides the
15appropriate documentation as required by Section 3-87 of the
16Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
17certification accepted by a retailer in accordance with this
18paragraph may be used by that retailer to satisfy Retailers'
19Occupation Tax liability (but not in satisfaction of penalty
20or interest) in the amount claimed in the certification, not
21to exceed 6.25% of the receipts subject to tax from a sale of
22aviation fuel. In addition, for a sale of aviation fuel to
23qualify to earn the Sustainable Aviation Fuel Purchase Credit,
24retailers must retain in their books and records a
25certification from the producer of the aviation fuel that the
26aviation fuel sold by the retailer and for which a sustainable

 

 

SB3725- 212 -LRB103 38226 HLH 68360 b

1aviation fuel purchase credit was earned meets the definition
2of sustainable aviation fuel under Section 3-87 of the Use Tax
3Act. The documentation must include detail sufficient for the
4Department to determine the number of gallons of sustainable
5aviation fuel sold.
6    The Department may require returns to be filed on a
7quarterly basis. If so required, a return for each calendar
8quarter shall be filed on or before the twentieth day of the
9calendar month following the end of such calendar quarter. The
10taxpayer shall also file a return with the Department for each
11of the first 2 two months of each calendar quarter, on or
12before the twentieth day of the following calendar month,
13stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in the business of selling tangible
17    personal property at retail in this State;
18        3. The total amount of taxable receipts received by
19    him during the preceding calendar month from sales of
20    tangible personal property by him during such preceding
21    calendar month, including receipts from charge and time
22    sales, but less all deductions allowed by law;
23        4. The amount of credit provided in Section 2d of this
24    Act;
25        5. The amount of tax due; and
26        6. Such other reasonable information as the Department

 

 

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1    may require.
2    Every person engaged in the business of selling aviation
3fuel at retail in this State during the preceding calendar
4month shall, instead of reporting and paying tax as otherwise
5required by this Section, report and pay such tax on a separate
6aviation fuel tax return. The requirements related to the
7return shall be as otherwise provided in this Section.
8Notwithstanding any other provisions of this Act to the
9contrary, retailers selling aviation fuel shall file all
10aviation fuel tax returns and shall make all aviation fuel tax
11payments by electronic means in the manner and form required
12by the Department. For purposes of this Section, "aviation
13fuel" means jet fuel and aviation gasoline.
14    Beginning on October 1, 2003, any person who is not a
15licensed distributor, importing distributor, or manufacturer,
16as defined in the Liquor Control Act of 1934, but is engaged in
17the business of selling, at retail, alcoholic liquor shall
18file a statement with the Department of Revenue, in a format
19and at a time prescribed by the Department, showing the total
20amount paid for alcoholic liquor purchased during the
21preceding month and such other information as is reasonably
22required by the Department. The Department may adopt rules to
23require that this statement be filed in an electronic or
24telephonic format. Such rules may provide for exceptions from
25the filing requirements of this paragraph. For the purposes of
26this paragraph, the term "alcoholic liquor" shall have the

 

 

SB3725- 214 -LRB103 38226 HLH 68360 b

1meaning prescribed in the Liquor Control Act of 1934.
2    Beginning on October 1, 2003, every distributor, importing
3distributor, and manufacturer of alcoholic liquor as defined
4in the Liquor Control Act of 1934, shall file a statement with
5the Department of Revenue, no later than the 10th day of the
6month for the preceding month during which transactions
7occurred, by electronic means, showing the total amount of
8gross receipts from the sale of alcoholic liquor sold or
9distributed during the preceding month to purchasers;
10identifying the purchaser to whom it was sold or distributed;
11the purchaser's tax registration number; and such other
12information reasonably required by the Department. A
13distributor, importing distributor, or manufacturer of
14alcoholic liquor must personally deliver, mail, or provide by
15electronic means to each retailer listed on the monthly
16statement a report containing a cumulative total of that
17distributor's, importing distributor's, or manufacturer's
18total sales of alcoholic liquor to that retailer no later than
19the 10th day of the month for the preceding month during which
20the transaction occurred. The distributor, importing
21distributor, or manufacturer shall notify the retailer as to
22the method by which the distributor, importing distributor, or
23manufacturer will provide the sales information. If the
24retailer is unable to receive the sales information by
25electronic means, the distributor, importing distributor, or
26manufacturer shall furnish the sales information by personal

 

 

SB3725- 215 -LRB103 38226 HLH 68360 b

1delivery or by mail. For purposes of this paragraph, the term
2"electronic means" includes, but is not limited to, the use of
3a secure Internet website, e-mail, or facsimile.
4    If a total amount of less than $1 is payable, refundable or
5creditable, such amount shall be disregarded if it is less
6than 50 cents and shall be increased to $1 if it is 50 cents or
7more.
8    Notwithstanding any other provision of this Act to the
9contrary, retailers subject to tax on cannabis shall file all
10cannabis tax returns and shall make all cannabis tax payments
11by electronic means in the manner and form required by the
12Department.
13    Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall
18make all payments required by rules of the Department by
19electronic funds transfer. Beginning October 1, 1995, a
20taxpayer who has an average monthly tax liability of $50,000
21or more shall make all payments required by rules of the
22Department by electronic funds transfer. Beginning October 1,
232000, a taxpayer who has an annual tax liability of $200,000 or
24more shall make all payments required by rules of the
25Department by electronic funds transfer. The term "annual tax
26liability" shall be the sum of the taxpayer's liabilities

 

 

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1under this Act, and under all other State and local occupation
2and use tax laws administered by the Department, for the
3immediately preceding calendar year. The term "average monthly
4tax liability" shall be the sum of the taxpayer's liabilities
5under this Act, and under all other State and local occupation
6and use tax laws administered by the Department, for the
7immediately preceding calendar year divided by 12. Beginning
8on October 1, 2002, a taxpayer who has a tax liability in the
9amount set forth in subsection (b) of Section 2505-210 of the
10Department of Revenue Law shall make all payments required by
11rules of the Department by electronic funds transfer.
12    Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make
14payments by electronic funds transfer. All taxpayers required
15to make payments by electronic funds transfer shall make those
16payments for a minimum of one year beginning on October 1.
17    Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20    All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those
23payments in the manner authorized by the Department.
24    The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

 

 

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1    Any amount which is required to be shown or reported on any
2return or other document under this Act shall, if such amount
3is not a whole-dollar amount, be increased to the nearest
4whole-dollar amount in any case where the fractional part of a
5dollar is 50 cents or more, and decreased to the nearest
6whole-dollar amount where the fractional part of a dollar is
7less than 50 cents.
8    If the retailer is otherwise required to file a monthly
9return and if the retailer's average monthly tax liability to
10the Department does not exceed $200, the Department may
11authorize his returns to be filed on a quarter annual basis,
12with the return for January, February, and March of a given
13year being due by April 20 of such year; with the return for
14April, May, and June of a given year being due by July 20 of
15such year; with the return for July, August, and September of a
16given year being due by October 20 of such year, and with the
17return for October, November, and December of a given year
18being due by January 20 of the following year.
19    If the retailer is otherwise required to file a monthly or
20quarterly return and if the retailer's average monthly tax
21liability with the Department does not exceed $50, the
22Department may authorize his returns to be filed on an annual
23basis, with the return for a given year being due by January 20
24of the following year.
25    Such quarter annual and annual returns, as to form and
26substance, shall be subject to the same requirements as

 

 

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1monthly returns.
2    Notwithstanding any other provision in this Act concerning
3the time within which a retailer may file his return, in the
4case of any retailer who ceases to engage in a kind of business
5which makes him responsible for filing returns under this Act,
6such retailer shall file a final return under this Act with the
7Department not more than one month after discontinuing such
8business.
9    Where the same person has more than one business
10registered with the Department under separate registrations
11under this Act, such person may not file each return that is
12due as a single return covering all such registered
13businesses, but shall file separate returns for each such
14registered business.
15    In addition, with respect to motor vehicles, watercraft,
16aircraft, and trailers that are required to be registered with
17an agency of this State, except as otherwise provided in this
18Section, every retailer selling this kind of tangible personal
19property shall file, with the Department, upon a form to be
20prescribed and supplied by the Department, a separate return
21for each such item of tangible personal property which the
22retailer sells, except that if, in the same transaction, (i) a
23retailer of aircraft, watercraft, motor vehicles, or trailers
24transfers more than one aircraft, watercraft, motor vehicle,
25or trailer to another aircraft, watercraft, motor vehicle
26retailer, or trailer retailer for the purpose of resale or

 

 

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1(ii) a retailer of aircraft, watercraft, motor vehicles, or
2trailers transfers more than one aircraft, watercraft, motor
3vehicle, or trailer to a purchaser for use as a qualifying
4rolling stock as provided in Section 2-5 of this Act, then that
5seller may report the transfer of all aircraft, watercraft,
6motor vehicles, or trailers involved in that transaction to
7the Department on the same uniform invoice-transaction
8reporting return form. For purposes of this Section,
9"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
10defined in Section 3-2 of the Boat Registration and Safety
11Act, a personal watercraft, or any boat equipped with an
12inboard motor.
13    In addition, with respect to motor vehicles, watercraft,
14aircraft, and trailers that are required to be registered with
15an agency of this State, every person who is engaged in the
16business of leasing or renting such items and who, in
17connection with such business, sells any such item to a
18retailer for the purpose of resale is, notwithstanding any
19other provision of this Section to the contrary, authorized to
20meet the return-filing requirement of this Act by reporting
21the transfer of all the aircraft, watercraft, motor vehicles,
22or trailers transferred for resale during a month to the
23Department on the same uniform invoice-transaction reporting
24return form on or before the 20th of the month following the
25month in which the transfer takes place. Notwithstanding any
26other provision of this Act to the contrary, all returns filed

 

 

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1under this paragraph must be filed by electronic means in the
2manner and form as required by the Department.
3    Any retailer who sells only motor vehicles, watercraft,
4aircraft, or trailers that are required to be registered with
5an agency of this State, so that all retailers' occupation tax
6liability is required to be reported, and is reported, on such
7transaction reporting returns and who is not otherwise
8required to file monthly or quarterly returns, need not file
9monthly or quarterly returns. However, those retailers shall
10be required to file returns on an annual basis.
11    The transaction reporting return, in the case of motor
12vehicles or trailers that are required to be registered with
13an agency of this State, shall be the same document as the
14Uniform Invoice referred to in Section 5-402 of the Illinois
15Vehicle Code and must show the name and address of the seller;
16the name and address of the purchaser; the amount of the
17selling price including the amount allowed by the retailer for
18traded-in property, if any; the amount allowed by the retailer
19for the traded-in tangible personal property, if any, to the
20extent to which Section 1 of this Act allows an exemption for
21the value of traded-in property; the balance payable after
22deducting such trade-in allowance from the total selling
23price; the amount of tax due from the retailer with respect to
24such transaction; the amount of tax collected from the
25purchaser by the retailer on such transaction (or satisfactory
26evidence that such tax is not due in that particular instance,

 

 

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1if that is claimed to be the fact); the place and date of the
2sale; a sufficient identification of the property sold; such
3other information as is required in Section 5-402 of the
4Illinois Vehicle Code, and such other information as the
5Department may reasonably require.
6    The transaction reporting return in the case of watercraft
7or aircraft must show the name and address of the seller; the
8name and address of the purchaser; the amount of the selling
9price including the amount allowed by the retailer for
10traded-in property, if any; the amount allowed by the retailer
11for the traded-in tangible personal property, if any, to the
12extent to which Section 1 of this Act allows an exemption for
13the value of traded-in property; the balance payable after
14deducting such trade-in allowance from the total selling
15price; the amount of tax due from the retailer with respect to
16such transaction; the amount of tax collected from the
17purchaser by the retailer on such transaction (or satisfactory
18evidence that such tax is not due in that particular instance,
19if that is claimed to be the fact); the place and date of the
20sale, a sufficient identification of the property sold, and
21such other information as the Department may reasonably
22require.
23    Such transaction reporting return shall be filed not later
24than 20 days after the day of delivery of the item that is
25being sold, but may be filed by the retailer at any time sooner
26than that if he chooses to do so. The transaction reporting

 

 

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1return and tax remittance or proof of exemption from the
2Illinois use tax may be transmitted to the Department by way of
3the State agency with which, or State officer with whom the
4tangible personal property must be titled or registered (if
5titling or registration is required) if the Department and
6such agency or State officer determine that this procedure
7will expedite the processing of applications for title or
8registration.
9    With each such transaction reporting return, the retailer
10shall remit the proper amount of tax due (or shall submit
11satisfactory evidence that the sale is not taxable if that is
12the case), to the Department or its agents, whereupon the
13Department shall issue, in the purchaser's name, a use tax
14receipt (or a certificate of exemption if the Department is
15satisfied that the particular sale is tax exempt) which such
16purchaser may submit to the agency with which, or State
17officer with whom, he must title or register the tangible
18personal property that is involved (if titling or registration
19is required) in support of such purchaser's application for an
20Illinois certificate or other evidence of title or
21registration to such tangible personal property.
22    No retailer's failure or refusal to remit tax under this
23Act precludes a user, who has paid the proper tax to the
24retailer, from obtaining his certificate of title or other
25evidence of title or registration (if titling or registration
26is required) upon satisfying the Department that such user has

 

 

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1paid the proper tax (if tax is due) to the retailer. The
2Department shall adopt appropriate rules to carry out the
3mandate of this paragraph.
4    If the user who would otherwise pay tax to the retailer
5wants the transaction reporting return filed and the payment
6of the tax or proof of exemption made to the Department before
7the retailer is willing to take these actions and such user has
8not paid the tax to the retailer, such user may certify to the
9fact of such delay by the retailer and may (upon the Department
10being satisfied of the truth of such certification) transmit
11the information required by the transaction reporting return
12and the remittance for tax or proof of exemption directly to
13the Department and obtain his tax receipt or exemption
14determination, in which event the transaction reporting return
15and tax remittance (if a tax payment was required) shall be
16credited by the Department to the proper retailer's account
17with the Department, but without the 2.1% or 1.75% discount
18provided for in this Section being allowed. When the user pays
19the tax directly to the Department, he shall pay the tax in the
20same amount and in the same form in which it would be remitted
21if the tax had been remitted to the Department by the retailer.
22    Refunds made by the seller during the preceding return
23period to purchasers, on account of tangible personal property
24returned to the seller, shall be allowed as a deduction under
25subdivision 5 of his monthly or quarterly return, as the case
26may be, in case the seller had theretofore included the

 

 

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1receipts from the sale of such tangible personal property in a
2return filed by him and had paid the tax imposed by this Act
3with respect to such receipts.
4    Where the seller is a corporation, the return filed on
5behalf of such corporation shall be signed by the president,
6vice-president, secretary, or treasurer or by the properly
7accredited agent of such corporation.
8    Where the seller is a limited liability company, the
9return filed on behalf of the limited liability company shall
10be signed by a manager, member, or properly accredited agent
11of the limited liability company.
12    Except as provided in this Section, the retailer filing
13the return under this Section shall, at the time of filing such
14return, pay to the Department the amount of tax imposed by this
15Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
16on and after January 1, 1990, or $5 per calendar year,
17whichever is greater, which is allowed to reimburse the
18retailer for the expenses incurred in keeping records,
19preparing and filing returns, remitting the tax and supplying
20data to the Department on request. On and after January 1,
212021, a certified service provider, as defined in the Leveling
22the Playing Field for Illinois Retail Act, filing the return
23under this Section on behalf of a remote retailer shall, at the
24time of such return, pay to the Department the amount of tax
25imposed by this Act less a discount of 1.75%. A remote retailer
26using a certified service provider to file a return on its

 

 

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1behalf, as provided in the Leveling the Playing Field for
2Illinois Retail Act, is not eligible for the discount. When
3determining the discount allowed under this Section, retailers
4shall include the amount of tax that would have been due at the
51% rate but for the 0% rate imposed under Public Act 102-700.
6When determining the discount allowed under this Section,
7retailers shall include the amount of tax that would have been
8due at the 6.25% rate but for the 1.25% rate imposed on sales
9tax holiday items under Public Act 102-700. The discount under
10this Section is not allowed for the 1.25% portion of taxes paid
11on aviation fuel that is subject to the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
13prepayment made pursuant to Section 2d of this Act shall be
14included in the amount on which such 2.1% or 1.75% discount is
15computed. In the case of retailers who report and pay the tax
16on a transaction by transaction basis, as provided in this
17Section, such discount shall be taken with each such tax
18remittance instead of when such retailer files his periodic
19return. The discount allowed under this Section is allowed
20only for returns that are filed in the manner required by this
21Act. The Department may disallow the discount for retailers
22whose certificate of registration is revoked at the time the
23return is filed, but only if the Department's decision to
24revoke the certificate of registration has become final.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Use Tax

 

 

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1Act, the Service Occupation Tax Act, and the Service Use Tax
2Act, excluding any liability for prepaid sales tax to be
3remitted in accordance with Section 2d of this Act, was
4$10,000 or more during the preceding 4 complete calendar
5quarters, he shall file a return with the Department each
6month by the 20th day of the month next following the month
7during which such tax liability is incurred and shall make
8payments to the Department on or before the 7th, 15th, 22nd and
9last day of the month during which such liability is incurred.
10On and after October 1, 2000, if the taxpayer's average
11monthly tax liability to the Department under this Act, the
12Use Tax Act, the Service Occupation Tax Act, and the Service
13Use Tax Act, excluding any liability for prepaid sales tax to
14be remitted in accordance with Section 2d of this Act, was
15$20,000 or more during the preceding 4 complete calendar
16quarters, he shall file a return with the Department each
17month by the 20th day of the month next following the month
18during which such tax liability is incurred and shall make
19payment to the Department on or before the 7th, 15th, 22nd and
20last day of the month during which such liability is incurred.
21If the month during which such tax liability is incurred began
22prior to January 1, 1985, each payment shall be in an amount
23equal to 1/4 of the taxpayer's actual liability for the month
24or an amount set by the Department not to exceed 1/4 of the
25average monthly liability of the taxpayer to the Department
26for the preceding 4 complete calendar quarters (excluding the

 

 

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1month of highest liability and the month of lowest liability
2in such 4 quarter period). If the month during which such tax
3liability is incurred begins on or after January 1, 1985 and
4prior to January 1, 1987, each payment shall be in an amount
5equal to 22.5% of the taxpayer's actual liability for the
6month or 27.5% of the taxpayer's liability for the same
7calendar month of the preceding year. If the month during
8which such tax liability is incurred begins on or after
9January 1, 1987 and prior to January 1, 1988, each payment
10shall be in an amount equal to 22.5% of the taxpayer's actual
11liability for the month or 26.25% of the taxpayer's liability
12for the same calendar month of the preceding year. If the month
13during which such tax liability is incurred begins on or after
14January 1, 1988, and prior to January 1, 1989, or begins on or
15after January 1, 1996, each payment shall be in an amount equal
16to 22.5% of the taxpayer's actual liability for the month or
1725% of the taxpayer's liability for the same calendar month of
18the preceding year. If the month during which such tax
19liability is incurred begins on or after January 1, 1989, and
20prior to January 1, 1996, each payment shall be in an amount
21equal to 22.5% of the taxpayer's actual liability for the
22month or 25% of the taxpayer's liability for the same calendar
23month of the preceding year or 100% of the taxpayer's actual
24liability for the quarter monthly reporting period. The amount
25of such quarter monthly payments shall be credited against the
26final tax liability of the taxpayer's return for that month.

 

 

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1Before October 1, 2000, once applicable, the requirement of
2the making of quarter monthly payments to the Department by
3taxpayers having an average monthly tax liability of $10,000
4or more as determined in the manner provided above shall
5continue until such taxpayer's average monthly liability to
6the Department during the preceding 4 complete calendar
7quarters (excluding the month of highest liability and the
8month of lowest liability) is less than $9,000, or until such
9taxpayer's average monthly liability to the Department as
10computed for each calendar quarter of the 4 preceding complete
11calendar quarter period is less than $10,000. However, if a
12taxpayer can show the Department that a substantial change in
13the taxpayer's business has occurred which causes the taxpayer
14to anticipate that his average monthly tax liability for the
15reasonably foreseeable future will fall below the $10,000
16threshold stated above, then such taxpayer may petition the
17Department for a change in such taxpayer's reporting status.
18On and after October 1, 2000, once applicable, the requirement
19of the making of quarter monthly payments to the Department by
20taxpayers having an average monthly tax liability of $20,000
21or more as determined in the manner provided above shall
22continue until such taxpayer's average monthly liability to
23the Department during the preceding 4 complete calendar
24quarters (excluding the month of highest liability and the
25month of lowest liability) is less than $19,000 or until such
26taxpayer's average monthly liability to the Department as

 

 

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1computed for each calendar quarter of the 4 preceding complete
2calendar quarter period is less than $20,000. However, if a
3taxpayer can show the Department that a substantial change in
4the taxpayer's business has occurred which causes the taxpayer
5to anticipate that his average monthly tax liability for the
6reasonably foreseeable future will fall below the $20,000
7threshold stated above, then such taxpayer may petition the
8Department for a change in such taxpayer's reporting status.
9The Department shall change such taxpayer's reporting status
10unless it finds that such change is seasonal in nature and not
11likely to be long term. Quarter monthly payment status shall
12be determined under this paragraph as if the rate reduction to
130% in Public Act 102-700 on food for human consumption that is
14to be consumed off the premises where it is sold (other than
15alcoholic beverages, food consisting of or infused with adult
16use cannabis, soft drinks, and food that has been prepared for
17immediate consumption) had not occurred. For quarter monthly
18payments due under this paragraph on or after July 1, 2023 and
19through June 30, 2024, "25% of the taxpayer's liability for
20the same calendar month of the preceding year" shall be
21determined as if the rate reduction to 0% in Public Act 102-700
22had not occurred. Quarter monthly payment status shall be
23determined under this paragraph as if the rate reduction to
241.25% in Public Act 102-700 on sales tax holiday items had not
25occurred. For quarter monthly payments due on or after July 1,
262023 and through June 30, 2024, "25% of the taxpayer's

 

 

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1liability for the same calendar month of the preceding year"
2shall be determined as if the rate reduction to 1.25% in Public
3Act 102-700 on sales tax holiday items had not occurred. If any
4such quarter monthly payment is not paid at the time or in the
5amount required by this Section, then the taxpayer shall be
6liable for penalties and interest on the difference between
7the minimum amount due as a payment and the amount of such
8quarter monthly payment actually and timely paid, except
9insofar as the taxpayer has previously made payments for that
10month to the Department in excess of the minimum payments
11previously due as provided in this Section. The Department
12shall make reasonable rules and regulations to govern the
13quarter monthly payment amount and quarter monthly payment
14dates for taxpayers who file on other than a calendar monthly
15basis.
16    The provisions of this paragraph apply before October 1,
172001. Without regard to whether a taxpayer is required to make
18quarter monthly payments as specified above, any taxpayer who
19is required by Section 2d of this Act to collect and remit
20prepaid taxes and has collected prepaid taxes which average in
21excess of $25,000 per month during the preceding 2 complete
22calendar quarters, shall file a return with the Department as
23required by Section 2f and shall make payments to the
24Department on or before the 7th, 15th, 22nd and last day of the
25month during which such liability is incurred. If the month
26during which such tax liability is incurred began prior to

 

 

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1September 1, 1985 (the effective date of Public Act 84-221),
2each payment shall be in an amount not less than 22.5% of the
3taxpayer's actual liability under Section 2d. If the month
4during which such tax liability is incurred begins on or after
5January 1, 1986, each payment shall be in an amount equal to
622.5% of the taxpayer's actual liability for the month or
727.5% of the taxpayer's liability for the same calendar month
8of the preceding calendar year. If the month during which such
9tax liability is incurred begins on or after January 1, 1987,
10each payment shall be in an amount equal to 22.5% of the
11taxpayer's actual liability for the month or 26.25% of the
12taxpayer's liability for the same calendar month of the
13preceding year. The amount of such quarter monthly payments
14shall be credited against the final tax liability of the
15taxpayer's return for that month filed under this Section or
16Section 2f, as the case may be. Once applicable, the
17requirement of the making of quarter monthly payments to the
18Department pursuant to this paragraph shall continue until
19such taxpayer's average monthly prepaid tax collections during
20the preceding 2 complete calendar quarters is $25,000 or less.
21If any such quarter monthly payment is not paid at the time or
22in the amount required, the taxpayer shall be liable for
23penalties and interest on such difference, except insofar as
24the taxpayer has previously made payments for that month in
25excess of the minimum payments previously due.
26    The provisions of this paragraph apply on and after

 

 

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1October 1, 2001. Without regard to whether a taxpayer is
2required to make quarter monthly payments as specified above,
3any taxpayer who is required by Section 2d of this Act to
4collect and remit prepaid taxes and has collected prepaid
5taxes that average in excess of $20,000 per month during the
6preceding 4 complete calendar quarters shall file a return
7with the Department as required by Section 2f and shall make
8payments to the Department on or before the 7th, 15th, 22nd,
9and last day of the month during which the liability is
10incurred. Each payment shall be in an amount equal to 22.5% of
11the taxpayer's actual liability for the month or 25% of the
12taxpayer's liability for the same calendar month of the
13preceding year. The amount of the quarter monthly payments
14shall be credited against the final tax liability of the
15taxpayer's return for that month filed under this Section or
16Section 2f, as the case may be. Once applicable, the
17requirement of the making of quarter monthly payments to the
18Department pursuant to this paragraph shall continue until the
19taxpayer's average monthly prepaid tax collections during the
20preceding 4 complete calendar quarters (excluding the month of
21highest liability and the month of lowest liability) is less
22than $19,000 or until such taxpayer's average monthly
23liability to the Department as computed for each calendar
24quarter of the 4 preceding complete calendar quarters is less
25than $20,000. If any such quarter monthly payment is not paid
26at the time or in the amount required, the taxpayer shall be

 

 

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1liable for penalties and interest on such difference, except
2insofar as the taxpayer has previously made payments for that
3month in excess of the minimum payments previously due.
4    If any payment provided for in this Section exceeds the
5taxpayer's liabilities under this Act, the Use Tax Act, the
6Service Occupation Tax Act, and the Service Use Tax Act, as
7shown on an original monthly return, the Department shall, if
8requested by the taxpayer, issue to the taxpayer a credit
9memorandum no later than 30 days after the date of payment. The
10credit evidenced by such credit memorandum may be assigned by
11the taxpayer to a similar taxpayer under this Act, the Use Tax
12Act, the Service Occupation Tax Act, or the Service Use Tax
13Act, in accordance with reasonable rules and regulations to be
14prescribed by the Department. If no such request is made, the
15taxpayer may credit such excess payment against tax liability
16subsequently to be remitted to the Department under this Act,
17the Use Tax Act, the Service Occupation Tax Act, or the Service
18Use Tax Act, in accordance with reasonable rules and
19regulations prescribed by the Department. If the Department
20subsequently determined that all or any part of the credit
21taken was not actually due to the taxpayer, the taxpayer's
222.1% and 1.75% vendor's discount shall be reduced by 2.1% or
231.75% of the difference between the credit taken and that
24actually due, and that taxpayer shall be liable for penalties
25and interest on such difference.
26    If a retailer of motor fuel is entitled to a credit under

 

 

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1Section 2d of this Act which exceeds the taxpayer's liability
2to the Department under this Act for the month for which the
3taxpayer is filing a return, the Department shall issue the
4taxpayer a credit memorandum for the excess.
5    Beginning January 1, 1990 and until August 1, 2024, each
6month the Department shall pay into the Local Government Tax
7Fund, a special fund in the State treasury which is hereby
8created, the net revenue realized for the preceding month from
9the 1% tax imposed under this Act.
10    Beginning August 1, 2024, the State Comptroller shall
11order transferred and the State Treasurer shall transfer from
12the General Revenue Fund to the Local Government Tax Fund, the
13amount deposited into the Local Government Tax Fund for the
14same month in calendar year 2021 from items that were subject
15to a 1% rate of tax in calendar year 2021. On August 1 of each
16year thereafter, the amount transferred from the General
17Revenue Fund to the Local Government Tax Fund under this
18paragraph shall be increased by the percentage change, if any,
19in the Consumer Price Index for All Urban Consumers as issued
20by the United States Department of Labor for the most recent
2112-month period for which data is available.
22    Beginning January 1, 1990, each month the Department shall
23pay into the County and Mass Transit District Fund, a special
24fund in the State treasury which is hereby created, 4% of the
25net revenue realized for the preceding month from the 6.25%
26general rate other than aviation fuel sold on or after

 

 

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1December 1, 2019. This exception for aviation fuel only
2applies for so long as the revenue use requirements of 49
3U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
4    Beginning August 1, 2000, each month the Department shall
5pay into the County and Mass Transit District Fund 20% of the
6net revenue realized for the preceding month from the 1.25%
7rate on the selling price of motor fuel and gasohol. If, in any
8month, the tax on sales tax holiday items, as defined in
9Section 2-8, is imposed at the rate of 1.25%, then the
10Department shall pay 20% of the net revenue realized for that
11month from the 1.25% rate on the selling price of sales tax
12holiday items into the County and Mass Transit District Fund.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund 16% of the net revenue
15realized for the preceding month from the 6.25% general rate
16on the selling price of tangible personal property other than
17aviation fuel sold on or after December 1, 2019. This
18exception for aviation fuel only applies for so long as the
19revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2047133 are binding on the State.
21    For aviation fuel sold on or after December 1, 2019, each
22month the Department shall pay into the State Aviation Program
23Fund 20% of the net revenue realized for the preceding month
24from the 6.25% general rate on the selling price of aviation
25fuel, less an amount estimated by the Department to be
26required for refunds of the 20% portion of the tax on aviation

 

 

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1fuel under this Act, which amount shall be deposited into the
2Aviation Fuel Sales Tax Refund Fund. The Department shall only
3pay moneys into the State Aviation Program Fund and the
4Aviation Fuel Sales Tax Refund Fund under this Act for so long
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6U.S.C. 47133 are binding on the State.
7    Beginning August 1, 2000, each month the Department shall
8pay into the Local Government Tax Fund 80% of the net revenue
9realized for the preceding month from the 1.25% rate on the
10selling price of motor fuel and gasohol. If, in any month, the
11tax on sales tax holiday items, as defined in Section 2-8, is
12imposed at the rate of 1.25%, then the Department shall pay 80%
13of the net revenue realized for that month from the 1.25% rate
14on the selling price of sales tax holiday items into the Local
15Government Tax Fund.
16    Beginning October 1, 2009, each month the Department shall
17pay into the Capital Projects Fund an amount that is equal to
18an amount estimated by the Department to represent 80% of the
19net revenue realized for the preceding month from the sale of
20candy, grooming and hygiene products, and soft drinks that had
21been taxed at a rate of 1% prior to September 1, 2009 but that
22are now taxed at 6.25%.
23    Beginning July 1, 2011, each month the Department shall
24pay into the Clean Air Act Permit Fund 80% of the net revenue
25realized for the preceding month from the 6.25% general rate
26on the selling price of sorbents used in Illinois in the

 

 

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1process of sorbent injection as used to comply with the
2Environmental Protection Act or the federal Clean Air Act, but
3the total payment into the Clean Air Act Permit Fund under this
4Act and the Use Tax Act shall not exceed $2,000,000 in any
5fiscal year.
6    Beginning July 1, 2013, each month the Department shall
7pay into the Underground Storage Tank Fund from the proceeds
8collected under this Act, the Use Tax Act, the Service Use Tax
9Act, and the Service Occupation Tax Act an amount equal to the
10average monthly deficit in the Underground Storage Tank Fund
11during the prior year, as certified annually by the Illinois
12Environmental Protection Agency, but the total payment into
13the Underground Storage Tank Fund under this Act, the Use Tax
14Act, the Service Use Tax Act, and the Service Occupation Tax
15Act shall not exceed $18,000,000 in any State fiscal year. As
16used in this paragraph, the "average monthly deficit" shall be
17equal to the difference between the average monthly claims for
18payment by the fund and the average monthly revenues deposited
19into the fund, excluding payments made pursuant to this
20paragraph.
21    Beginning July 1, 2015, of the remainder of the moneys
22received by the Department under the Use Tax Act, the Service
23Use Tax Act, the Service Occupation Tax Act, and this Act, each
24month the Department shall deposit $500,000 into the State
25Crime Laboratory Fund.
26    Of the remainder of the moneys received by the Department

 

 

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1pursuant to this Act, (a) 1.75% thereof shall be paid into the
2Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3and after July 1, 1989, 3.8% thereof shall be paid into the
4Build Illinois Fund; provided, however, that if in any fiscal
5year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6may be, of the moneys received by the Department and required
7to be paid into the Build Illinois Fund pursuant to this Act,
8Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
9Act, and Section 9 of the Service Occupation Tax Act, such Acts
10being hereinafter called the "Tax Acts" and such aggregate of
112.2% or 3.8%, as the case may be, of moneys being hereinafter
12called the "Tax Act Amount", and (2) the amount transferred to
13the Build Illinois Fund from the State and Local Sales Tax
14Reform Fund shall be less than the Annual Specified Amount (as
15hereinafter defined), an amount equal to the difference shall
16be immediately paid into the Build Illinois Fund from other
17moneys received by the Department pursuant to the Tax Acts;
18the "Annual Specified Amount" means the amounts specified
19below for fiscal years 1986 through 1993:
20Fiscal YearAnnual Specified Amount
211986$54,800,000
221987$76,650,000
231988$80,480,000
241989$88,510,000
251990$115,330,000
261991$145,470,000

 

 

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11992$182,730,000
21993$206,520,000;
3and means the Certified Annual Debt Service Requirement (as
4defined in Section 13 of the Build Illinois Bond Act) or the
5Tax Act Amount, whichever is greater, for fiscal year 1994 and
6each fiscal year thereafter; and further provided, that if on
7the last business day of any month the sum of (1) the Tax Act
8Amount required to be deposited into the Build Illinois Bond
9Account in the Build Illinois Fund during such month and (2)
10the amount transferred to the Build Illinois Fund from the
11State and Local Sales Tax Reform Fund shall have been less than
121/12 of the Annual Specified Amount, an amount equal to the
13difference shall be immediately paid into the Build Illinois
14Fund from other moneys received by the Department pursuant to
15the Tax Acts; and, further provided, that in no event shall the
16payments required under the preceding proviso result in
17aggregate payments into the Build Illinois Fund pursuant to
18this clause (b) for any fiscal year in excess of the greater of
19(i) the Tax Act Amount or (ii) the Annual Specified Amount for
20such fiscal year. The amounts payable into the Build Illinois
21Fund under clause (b) of the first sentence in this paragraph
22shall be payable only until such time as the aggregate amount
23on deposit under each trust indenture securing Bonds issued
24and outstanding pursuant to the Build Illinois Bond Act is
25sufficient, taking into account any future investment income,
26to fully provide, in accordance with such indenture, for the

 

 

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1defeasance of or the payment of the principal of, premium, if
2any, and interest on the Bonds secured by such indenture and on
3any Bonds expected to be issued thereafter and all fees and
4costs payable with respect thereto, all as certified by the
5Director of the Bureau of the Budget (now Governor's Office of
6Management and Budget). If on the last business day of any
7month in which Bonds are outstanding pursuant to the Build
8Illinois Bond Act, the aggregate of moneys deposited in the
9Build Illinois Bond Account in the Build Illinois Fund in such
10month shall be less than the amount required to be transferred
11in such month from the Build Illinois Bond Account to the Build
12Illinois Bond Retirement and Interest Fund pursuant to Section
1313 of the Build Illinois Bond Act, an amount equal to such
14deficiency shall be immediately paid from other moneys
15received by the Department pursuant to the Tax Acts to the
16Build Illinois Fund; provided, however, that any amounts paid
17to the Build Illinois Fund in any fiscal year pursuant to this
18sentence shall be deemed to constitute payments pursuant to
19clause (b) of the first sentence of this paragraph and shall
20reduce the amount otherwise payable for such fiscal year
21pursuant to that clause (b). The moneys received by the
22Department pursuant to this Act and required to be deposited
23into the Build Illinois Fund are subject to the pledge, claim
24and charge set forth in Section 12 of the Build Illinois Bond
25Act.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

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1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000
262006113,000,000

 

 

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12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021300,000,000
162022300,000,000
172023300,000,000
182024 300,000,000
192025 300,000,000
202026 300,000,000
212027 375,000,000
222028 375,000,000
232029 375,000,000
242030 375,000,000
252031 375,000,000
262032 375,000,000

 

 

SB3725- 243 -LRB103 38226 HLH 68360 b

12033375,000,000
22034375,000,000
32035375,000,000
42036450,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total
25Deposit", has been deposited.
26    Subject to payment of amounts into the Capital Projects

 

 

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1Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, for aviation fuel sold on or after December 1, 2019,
5the Department shall each month deposit into the Aviation Fuel
6Sales Tax Refund Fund an amount estimated by the Department to
7be required for refunds of the 80% portion of the tax on
8aviation fuel under this Act. The Department shall only
9deposit moneys into the Aviation Fuel Sales Tax Refund Fund
10under this paragraph for so long as the revenue use
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
12binding on the State.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning July 1, 1993 and ending on September 30,
172013, the Department shall each month pay into the Illinois
18Tax Increment Fund 0.27% of 80% of the net revenue realized for
19the preceding month from the 6.25% general rate on the selling
20price of tangible personal property.
21    Subject to payment of amounts into the Build Illinois
22Fund, the McCormick Place Expansion Project Fund, and the
23Illinois Tax Increment Fund pursuant to the preceding
24paragraphs or in any amendments to this Section hereafter
25enacted, beginning on the first day of the first calendar
26month to occur on or after August 26, 2014 (the effective date

 

 

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1of Public Act 98-1098), each month, from the collections made
2under Section 9 of the Use Tax Act, Section 9 of the Service
3Use Tax Act, Section 9 of the Service Occupation Tax Act, and
4Section 3 of the Retailers' Occupation Tax Act, the Department
5shall pay into the Tax Compliance and Administration Fund, to
6be used, subject to appropriation, to fund additional auditors
7and compliance personnel at the Department of Revenue, an
8amount equal to 1/12 of 5% of 80% of the cash receipts
9collected during the preceding fiscal year by the Audit Bureau
10of the Department under the Use Tax Act, the Service Use Tax
11Act, the Service Occupation Tax Act, the Retailers' Occupation
12Tax Act, and associated local occupation and use taxes
13administered by the Department.
14    Subject to payments of amounts into the Build Illinois
15Fund, the McCormick Place Expansion Project Fund, the Illinois
16Tax Increment Fund, the Energy Infrastructure Fund, and the
17Tax Compliance and Administration Fund as provided in this
18Section, beginning on July 1, 2018 the Department shall pay
19each month into the Downstate Public Transportation Fund the
20moneys required to be so paid under Section 2-3 of the
21Downstate Public Transportation Act.
22    Subject to successful execution and delivery of a
23public-private agreement between the public agency and private
24entity and completion of the civic build, beginning on July 1,
252023, of the remainder of the moneys received by the
26Department under the Use Tax Act, the Service Use Tax Act, the

 

 

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1Service Occupation Tax Act, and this Act, the Department shall
2deposit the following specified deposits in the aggregate from
3collections under the Use Tax Act, the Service Use Tax Act, the
4Service Occupation Tax Act, and the Retailers' Occupation Tax
5Act, as required under Section 8.25g of the State Finance Act
6for distribution consistent with the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8The moneys received by the Department pursuant to this Act and
9required to be deposited into the Civic and Transit
10Infrastructure Fund are subject to the pledge, claim and
11charge set forth in Section 25-55 of the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13As used in this paragraph, "civic build", "private entity",
14"public-private agreement", and "public agency" have the
15meanings provided in Section 25-10 of the Public-Private
16Partnership for Civic and Transit Infrastructure Project Act.
17        Fiscal Year.............................Total Deposit
18        2024.....................................$200,000,000
19        2025....................................$206,000,000
20        2026....................................$212,200,000
21        2027....................................$218,500,000
22        2028....................................$225,100,000
23        2029....................................$288,700,000
24        2030....................................$298,900,000
25        2031....................................$309,300,000
26        2032....................................$320,100,000

 

 

SB3725- 247 -LRB103 38226 HLH 68360 b

1        2033....................................$331,200,000
2        2034....................................$341,200,000
3        2035....................................$351,400,000
4        2036....................................$361,900,000
5        2037....................................$372,800,000
6        2038....................................$384,000,000
7        2039....................................$395,500,000
8        2040....................................$407,400,000
9        2041....................................$419,600,000
10        2042....................................$432,200,000
11        2043....................................$445,100,000
12    Beginning July 1, 2021 and until July 1, 2022, subject to
13the payment of amounts into the County and Mass Transit
14District Fund, the Local Government Tax Fund, the Build
15Illinois Fund, the McCormick Place Expansion Project Fund, the
16Illinois Tax Increment Fund, and the Tax Compliance and
17Administration Fund as provided in this Section, the
18Department shall pay each month into the Road Fund the amount
19estimated to represent 16% of the net revenue realized from
20the taxes imposed on motor fuel and gasohol. Beginning July 1,
212022 and until July 1, 2023, subject to the payment of amounts
22into the County and Mass Transit District Fund, the Local
23Government Tax Fund, the Build Illinois Fund, the McCormick
24Place Expansion Project Fund, the Illinois Tax Increment Fund,
25and the Tax Compliance and Administration Fund as provided in
26this Section, the Department shall pay each month into the

 

 

SB3725- 248 -LRB103 38226 HLH 68360 b

1Road Fund the amount estimated to represent 32% of the net
2revenue realized from the taxes imposed on motor fuel and
3gasohol. Beginning July 1, 2023 and until July 1, 2024,
4subject to the payment of amounts into the County and Mass
5Transit District Fund, the Local Government Tax Fund, the
6Build Illinois Fund, the McCormick Place Expansion Project
7Fund, the Illinois Tax Increment Fund, and the Tax Compliance
8and Administration Fund as provided in this Section, the
9Department shall pay each month into the Road Fund the amount
10estimated to represent 48% of the net revenue realized from
11the taxes imposed on motor fuel and gasohol. Beginning July 1,
122024 and until July 1, 2025, subject to the payment of amounts
13into the County and Mass Transit District Fund, the Local
14Government Tax Fund, the Build Illinois Fund, the McCormick
15Place Expansion Project Fund, the Illinois Tax Increment Fund,
16and the Tax Compliance and Administration Fund as provided in
17this Section, the Department shall pay each month into the
18Road Fund the amount estimated to represent 64% of the net
19revenue realized from the taxes imposed on motor fuel and
20gasohol. Beginning on July 1, 2025, subject to the payment of
21amounts into the County and Mass Transit District Fund, the
22Local Government Tax Fund, the Build Illinois Fund, the
23McCormick Place Expansion Project Fund, the Illinois Tax
24Increment Fund, and the Tax Compliance and Administration Fund
25as provided in this Section, the Department shall pay each
26month into the Road Fund the amount estimated to represent 80%

 

 

SB3725- 249 -LRB103 38226 HLH 68360 b

1of the net revenue realized from the taxes imposed on motor
2fuel and gasohol. As used in this paragraph "motor fuel" has
3the meaning given to that term in Section 1.1 of the Motor Fuel
4Tax Law, and "gasohol" has the meaning given to that term in
5Section 3-40 of the Use Tax Act.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, 75% thereof shall be paid into the State
8treasury and 25% shall be reserved in a special account and
9used only for the transfer to the Common School Fund as part of
10the monthly transfer from the General Revenue Fund in
11accordance with Section 8a of the State Finance Act.
12    The Department may, upon separate written notice to a
13taxpayer, require the taxpayer to prepare and file with the
14Department on a form prescribed by the Department within not
15less than 60 days after receipt of the notice an annual
16information return for the tax year specified in the notice.
17Such annual return to the Department shall include a statement
18of gross receipts as shown by the retailer's last federal
19Federal income tax return. If the total receipts of the
20business as reported in the federal Federal income tax return
21do not agree with the gross receipts reported to the
22Department of Revenue for the same period, the retailer shall
23attach to his annual return a schedule showing a
24reconciliation of the 2 amounts and the reasons for the
25difference. The retailer's annual return to the Department
26shall also disclose the cost of goods sold by the retailer

 

 

SB3725- 250 -LRB103 38226 HLH 68360 b

1during the year covered by such return, opening and closing
2inventories of such goods for such year, costs of goods used
3from stock or taken from stock and given away by the retailer
4during such year, payroll information of the retailer's
5business during such year and any additional reasonable
6information which the Department deems would be helpful in
7determining the accuracy of the monthly, quarterly, or annual
8returns filed by such retailer as provided for in this
9Section.
10    If the annual information return required by this Section
11is not filed when and as required, the taxpayer shall be liable
12as follows:
13        (i) Until January 1, 1994, the taxpayer shall be
14    liable for a penalty equal to 1/6 of 1% of the tax due from
15    such taxpayer under this Act during the period to be
16    covered by the annual return for each month or fraction of
17    a month until such return is filed as required, the
18    penalty to be assessed and collected in the same manner as
19    any other penalty provided for in this Act.
20        (ii) On and after January 1, 1994, the taxpayer shall
21    be liable for a penalty as described in Section 3-4 of the
22    Uniform Penalty and Interest Act.
23    The chief executive officer, proprietor, owner, or highest
24ranking manager shall sign the annual return to certify the
25accuracy of the information contained therein. Any person who
26willfully signs the annual return containing false or

 

 

SB3725- 251 -LRB103 38226 HLH 68360 b

1inaccurate information shall be guilty of perjury and punished
2accordingly. The annual return form prescribed by the
3Department shall include a warning that the person signing the
4return may be liable for perjury.
5    The provisions of this Section concerning the filing of an
6annual information return do not apply to a retailer who is not
7required to file an income tax return with the United States
8Government.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20    For greater simplicity of administration, manufacturers,
21importers and wholesalers whose products are sold at retail in
22Illinois by numerous retailers, and who wish to do so, may
23assume the responsibility for accounting and paying to the
24Department all tax accruing under this Act with respect to
25such sales, if the retailers who are affected do not make
26written objection to the Department to this arrangement.

 

 

SB3725- 252 -LRB103 38226 HLH 68360 b

1    Any person who promotes, organizes, or provides retail
2selling space for concessionaires or other types of sellers at
3the Illinois State Fair, DuQuoin State Fair, county fairs,
4local fairs, art shows, flea markets, and similar exhibitions
5or events, including any transient merchant as defined by
6Section 2 of the Transient Merchant Act of 1987, is required to
7file a report with the Department providing the name of the
8merchant's business, the name of the person or persons engaged
9in merchant's business, the permanent address and Illinois
10Retailers Occupation Tax Registration Number of the merchant,
11the dates and location of the event, and other reasonable
12information that the Department may require. The report must
13be filed not later than the 20th day of the month next
14following the month during which the event with retail sales
15was held. Any person who fails to file a report required by
16this Section commits a business offense and is subject to a
17fine not to exceed $250.
18    Any person engaged in the business of selling tangible
19personal property at retail as a concessionaire or other type
20of seller at the Illinois State Fair, county fairs, art shows,
21flea markets, and similar exhibitions or events, or any
22transient merchants, as defined by Section 2 of the Transient
23Merchant Act of 1987, may be required to make a daily report of
24the amount of such sales to the Department and to make a daily
25payment of the full amount of tax due. The Department shall
26impose this requirement when it finds that there is a

 

 

SB3725- 253 -LRB103 38226 HLH 68360 b

1significant risk of loss of revenue to the State at such an
2exhibition or event. Such a finding shall be based on evidence
3that a substantial number of concessionaires or other sellers
4who are not residents of Illinois will be engaging in the
5business of selling tangible personal property at retail at
6the exhibition or event, or other evidence of a significant
7risk of loss of revenue to the State. The Department shall
8notify concessionaires and other sellers affected by the
9imposition of this requirement. In the absence of notification
10by the Department, the concessionaires and other sellers shall
11file their returns as otherwise required in this Section.
12(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
13Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
1465-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
151-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
16eff. 7-28-23; revised 9-27-23.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.